[House Report 108-599]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     108-599

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



 
      FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS 
                       APPROPRIATIONS BILL, 2005

                                _______
                                

 July 13, 2004.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 4818]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
appropriations for Foreign Operations, Export Financing, and 
Related Programs, and for sundry independent agencies and 
corporations for the fiscal year ending September 30, 2005, and 
for other purposes.

                        INDEX TO BILL AND REPORT

_______________________________________________________________________


                                                               Page

                                                            Bill Report
Overview of the Bill.......................................
                                                                      2
Committee Recommendations..................................
                                                                      4
Title I--Export and Investment Assistance:
        Export-Import Bank of the United States............     2
                                                                      4
        Overseas Private Investment Corporation............     4
                                                                      6
        Trade and Development Agency.......................     6
                                                                      7
Title II--Bilateral Economic Assistance:
        Child Survival and Health Programs Fund............     6
                                                                      8
        Development Assistance.............................    12
                                                                     16
        International Disaster and Famine Assistance.......    13
                                                                     31
        Transition Initiatives.............................    13
                                                                     32
        Development Credit Authority.......................    14
                                                                     33
        Payment to the Foreign Service Retirement and 
            Disability Fund................................    16
                                                                     33
        Operating Expenses of the United States Agency for 
            International Development......................    16
                                                                     33
        Capital Investment Fund............................    17
                                                                     35
        Operating Expenses of the Agency for International 
            Development, Office of the Inspector General...    18
                                                                     38
        Economic Support Fund..............................    18
                                                                     38
        International Fund for Ireland.....................    22
                                                                     48
        Assistance for Eastern Europe and the Baltic States    22
                                                                     49
        Assistance for the Independent States of the Former 
            Soviet Union...................................    24
                                                                     51
Independent Agencies:
        Inter-American Foundation..........................    27
                                                                     54
        African Development Foundation.....................    27
                                                                     54
        Peace Corps........................................    28
                                                                     54
        Millennium Challenge Corporation...................    28
                                                                     55
Department of State:
        Global HIV/AIDS Initiative.........................    30
                                                                     57
        International Narcotics Control and Law Enforcement    31
                                                                     63
        Andean Counterdrug Initiative......................    32
                                                                     65
        Migration and Refugee Assistance...................    34
                                                                     69
        Emergency Refugee and Migration Assistance Fund....    35
                                                                     70
        Nonproliferation, Anti-terrorism, Demining and 
            Related Programs...............................    35
                                                                     71
Department of the Treasury:
        International Affairs Technical Assistance.........    37
                                                                     73
        Debt Restructuring.................................    37
                                                                     73
Title III--Military Assistance:
        International Military Education and Training......    41
                                                                     74
        Foreign Military Financing Program.................    42
                                                                     75
        Peacekeeping Operations............................    45
                                                                     78
Title IV--Multilateral Economic Assistance:
        Global Environment Facility........................    46
                                                                     78
        International Development Association (IDA)........    46
                                                                     79
        Multilateral Investment Fund.......................    46
                                                                     81
        Asian Development Fund (ADF).......................    47
                                                                     81
        African Development Bank...........................    47
                                                                     81
        African Development Fund (AFDF)....................    47
                                                                     81
        European Bank for Reconstruction and Development 
            (EBRD).........................................    47
                                                                     82
        International Fund for Agricultural Development 
            (IFAD).........................................    48
                                                                     82
Department of State:
        International Organizations and Programs...........    48
                                                                     82
Title V--General Provisions:...............................    49
                                                                     83
House of Representatives Reporting Requirements............
                                                                     87

                                OVERVIEW

    The President's budget request for fiscal year 2005 for the 
activities under the jurisdiction of the Subcommittee on 
Foreign Operations, Export Financing, and Related Programs is 
$21,318,300,000 in new discretionary budget authority. The 
section 302(b) allocation for the Subcommittee is 
$19,386,000,000, a shortfall of $1,932,300,000.
    The Committee recommendation of $19,385,645,000 in 
discretionary budget authority reflects three overriding 
priorities:
          1. Responding to the global HIV/AIDS pandemic;
          2. Supporting our allies in the War on Terrorism; and
          3. Supporting innovative approaches to foreign 
        assistance through the Millennium Challenge 
        Corporation.

                        GLOBAL HIV/AIDS PANDEMIC

    The President's budget request includes an increase of 
$593,000,000 to respond to the global HIV/AIDS pandemic and 
related diseases. The Committee recommendation includes this 
increase and provides a total of $2,198,500,000 to combat HIV/
AIDS and related diseases. As part of this funding, 
$400,000,000 is made available as a grant to the Global Fund to 
Fight AIDS, Malaria and Tuberculosis, subject to conditions in 
section 525 that improve the Global Fund's accountability and 
efficiency.
    The President's Global AIDS Initiative is making treatment 
and care available to a record number of people affected by the 
disease. In 2003, only 50,000 people in the developing world 
had access to the drugs that dramatically reduce the impacts of 
AIDS and extend life for years, allowing parents to see their 
children into adulthood. By next summer, 200,000 people will 
have access to these drugs, and hundreds of thousands more will 
gain access in future years with the funds made available in 
the Committee recommendation. Over the next several years, 
millions of potential cases of HIV/AIDS will be averted.

                        GLOBAL WAR ON TERRORISM

    The President's budget request for the Foreign Military 
Financing Program includes important military assistance 
increases for our allies in the global war on terrorism, 
including:
           An increase of $350,000,000, for a total of 
        $400,000,000 to train and equip the new Afghan National 
        Army, and an increase of $90,000,000 elsewhere in the 
        bill for law enforcement and counter-narcotics programs 
        in Afghanistan;
           A new base program of $300,000,000 for 
        military assistance for Pakistan as they assist the 
        United States in hunting terrorists along the Afghan 
        border;
           An increase of $46,000,000, for a total of 
        $66,000,000 for Poland, a major ally in Operation Iraqi 
        Freedom; and
           An increase of $72,744,000, for a total of 
        $2,220,000,000 for our closest ally in the Middle East, 
        the State of Israel.
    The Committee recommendation includes full funding for 
these increases, both through new budget authority and, in the 
case of Pakistan, the use of transfer authority.

                    MILLENNIUM CHALLENGE CORPORATION

    The President's budget includes the second year of funding 
for the newly created Millennium Challenge Corporation, which 
is designed as a new way to provide assistance to countries 
with a commitment to make progress in addressing poverty 
reduction through economic growth and focused assistance 
programs. The President is requesting a total of $2,500,000,000 
for the Corporation for fiscal year 2005, an increase of 
$1,505,900,000 over the fiscal year 2004 level. The constraints 
of the section 302(b) allocation do not provide the Committee 
with the flexibility to fully fund this important initiative. 
However, $1,250,000,000 is recommended for the Corporation in 
an effort to respond positively to the President's proposal.

                            FUNDING SUMMARY

    The Committee recommendation of $19,385,645,000 in new 
discretionary budget authority is $1,932,685,000 below the 
President's request; it is $1,905,086,000 above the fiscal year 
2004 enacted level excluding supplemental appropriations. If 
supplemental appropriations and scorekeeping adjustments are 
included in the total for fiscal year 2004, the Committee 
recommendation represents a decrease of $19,287,514,000 below 
the fiscal year 2004 enacted level.

                       COMMITTEE RECOMMENDATIONS

    For export and investment assistance programs the Committee 
has recommended a gross total of $317,285,000 which is offset 
by collections and a negative subsidy totaling $311,000,000. 
The subsidy appropriation for the Overseas Private Investment 
Corporation is $24,000,000 and the Trade and Development Agency 
is funded at $51,500,000. Consistent with the President's 
budget request, the Committee has provided $125,700,000 in a 
subsidy appropriation for the United States Export-Import Bank.
    For development and humanitarian assistance, the Committee 
has recommended a total of $4,248,800,000 of which 
$1,648,500,000 is for child survival and health programs. 
Another $1,429,000,000 is for longer-term development 
assistance. The Committee has also included $355,500,000 for 
disasters and famine relief worldwide and $47,500,000 for 
transition initiatives.
    The Committee has included a total of $550,000,000 in 
assistance to the Independent States of the Former Soviet 
Union, and $375,000,000 for Eastern Europe and the Baltic 
States.
    The Committee has recommended a total of $776,000,000 for 
refugee programs.
    For economic assistance under the Economic Support Fund, 
the Committee has recommended a total of $2,450,000,000, 
including $895,000,000 for Egypt and Israel under the multi-
year schedule recommended by the Committee in 1996.
    The Committee has recommended $382,000,000 for a 
Nonproliferation, Anti-terrorism and Demining account which 
includes funding for the Nonproliferation and Disarmament Fund, 
anti-terrorism assistance, demining activities, and the United 
States voluntary contribution to the International Atomic 
Energy Agency (IAEA).
    For the Foreign Military Financing program, the Committee 
has recommended a grant program of $4,777,500,000, including an 
increase of $72,744,000 in assistance for Israel.
    The Committee has recommended $1,268,243,000 of the 
$1,492,731,000 requested for the international financial 
institutions. The overall level is $114,798,000 below the 
fiscal year 2004 enacted level and $224,488,000 below the 
request.

               TITLE I--EXPORT AND INVESTMENT ASSISTANCE


                Export-Import Bank of the United States


                         SUBSIDY APPROPRIATION




Fiscal year 2004 level................................  ................
Fiscal year 2005 request..............................      $125,700,000
Committee recommendation..............................       125,700,000


                        ADMINISTRATIVE EXPENSES




Fiscal year 2004 level................................       $72,465,000
Fiscal year 2005 request..............................        73,200,000
Committee recommendation..............................        73,200,000


    As requested by the President, the Committee is 
recommending a subsidy appropriation for the Export-Import Bank 
in fiscal year 2005. No funds were appropriated last year for 
this purpose. The Committee recommends a level of $125,700,000 
for the subsidy appropriation, the same level as the request.
    Funding for a subsidy appropriation was neither requested 
by the President nor appropriated by the Congress in fiscal 
year 2004 due to extraordinarily high balances of carryover 
from prior years' appropriations. The Export-Import Bank 
estimates that $125,700,000, together with carryover balances, 
is needed in fiscal year 2005 to support a projected level of 
financing of $12,000,000,000. The Committee directs the 
President of the Export-Import Bank to report quarterly to the 
Committee on the level of authorizations, subsidy used, and 
subsidy balances from current and prior years.
    In addition, the Committee provides $73,200,000 for 
administrative expenses, the same as the request and $735,000 
above the fiscal year 2004 enacted level. The Committee 
recommends no appropriation for establishing a new office of 
inspector general.
    The Committee provides no additional funds for a tied-aid 
``war chest''. The estimated $260,500,000 remaining ``war 
chest'' balance for tied-aid purposes may be used to support 
loans. The Committee still expects that none of the funds 
appropriated by prior acts for tied-aid credits or grants may 
be used for any other purpose except through the regular 
notification procedures of the Committees on Appropriations.
    The Committee has continued prior year language limiting 
the export of nuclear technology or fuel to certain countries.
    Again this year, the Committee recommends a one-year 
extension of the Export-Import Bank's dual use authority, which 
originally expired on June 14, 2002. Dual use authority allows 
the Bank to finance transactions dealing with items that can be 
used for both civilian and military purposes, but which must be 
non-lethal in nature and shall be used predominantly by 
civilian authorities.

                      BROOKE AMENDMENT PROCEDURES

    The Committee is aware of an inter-agency agreement among 
the Departments of State and Defense, the Export-Import Bank, 
and USAID that establishes reporting procedures regarding 
compliance with section 512 of the bill, the so-called Brooke 
amendment, and section 620(q) of the Foreign Assistance Act. 
The procedures provide a mechanism to share information among 
those agencies regarding countries that are either in arrears 
on loan repayments owed to the United States or which may soon 
become so. Since the provision of foreign assistance to 
countries in arrears is restricted by those sections, 
information required by these procedures is of great importance 
to the administration of foreign assistance funds. The 
Committee directs the Export-Import Bank to continue to follow 
the inter-agency agreement.

                                  IRAQ

    The Export-Import Bank was instrumental in setting up the 
Trade Bank of Iraq, although the Bank is designed to use the 
Development Fund for Iraq (DFI) as collateral for new issuances 
of letters of credit. The Committee directs the President of 
the Export-Import Bank to keep the Committee informed about the 
Export-Import Bank's role with the Trade Bank now that the DFI 
has reverted to Iraqi control.
    Additionally, the Committee expects the Export-Import Bank 
to continue to comply with language in the Joint Explanatory 
Statement of the Committee of Conference accompanying H.R. 
3289, the Emergency Supplemental Appropriations Act for Defense 
and the Reconstruction of Iraq and Afghanistan, 2004, and 
report quarterly to the Committee during fiscal year 2005 
regarding the agency's activities in Iraq.

                Overseas Private Investment Corporation


                           NONCREDIT ACCOUNT




Fiscal year 2004 level................................       $41,141,000
Fiscal year 2005 request..............................        42,885,000
Committee recommendation..............................        42,885,000


                            PROGRAM ACCOUNT




Fiscal year 2004 level................................       $23,858,000
Fiscal year 2005 request..............................        24,000,000
Committee recommendation..............................        24,000,000


    The Committee provides $42,885,000 for the Overseas Private 
Investment Corporation's (OPIC) administrative expenses, a 
level equal to the request and $1,744,000 higher than the 
fiscal year 2004 enacted level. The Committee is recommending a 
$24,000,000 subsidy appropriation for the direct and guaranteed 
loan credit programs, the same level as the request and 
$142,000 more than the fiscal year 2004 level.
    The Committee continues prior year language required by the 
Federal Credit Reform Act and addressing representation 
expenses and availability of funds.
    As in prior years, the Committee directs OPIC to continue 
to provide on a semi- annual basis written reports including 
the following information for each investment fund: the 
identity, selection process, and professional background of 
current and past managers; the fees and compensation currently 
provided to senior management; the amount of OPIC guarantees 
and actual investments made at the end of the previous six 
months; and any additional observations that OPIC may want to 
include. The Committee commends OPIC for its judicious 
management of its investment fund portfolio.
    The Committee commends the managers of OPIC for exploring 
new ways of meeting OPIC's development mandate, but during 
times of high political risk and instability in some countries, 
OPIC also must fulfill its mandate of facilitating increased 
United States direct investment abroad and increased exports 
from the United States. The Committee is aware of OPIC's policy 
that it only provides insurance for a project after a company 
has attempted to access the private market, and this policy has 
solidified OPIC's role as insurer of last resort. With global 
risk remaining high for foreign direct investment, and 
investment's primary role in creating jobs and raising income 
levels in the developing world, the Committee expects OPIC to 
retain its strong role as insurer of last resort for political 
risk insurance, including terrorism insurance, for United 
States companies.
    Additionally, the Committee remains concerned about OPIC's 
coordination with the other United States Government agencies 
that operate overseas. To ensure that foreign assistance and 
credit is not provided to countries on different terms by 
different agencies (including financing that could be 
considered debt by the Paris Club), the Committee again expects 
OPIC to coordinate with USAID, the Millennium Challenge 
Corporation, the Treasury Department, the Office of Management 
and Budget and other agencies of the United States Government 
with which OPIC may overlap in providing assistance.
    The Committee remains concerned about OPIC's local currency 
loan guaranty authority and the lack of oversight by Congress 
of the use of such authority. Therefore, the Committee directs 
OPIC to consult with the Committee on Appropriations before 
exercising this authority, and to provide to the Committee 
prior to the consultation a justification for the need to 
exercise such authority, the use of OPIC subsidy required, the 
degree to which the United States would be exposed to 
additional risk as a result of such transactions, and which 
other United States Government agencies have been consulted.
    The Committee directs the President of OPIC to continue 
current policy and consult with the Committees on 
Appropriations before the approval of any future financing for 
nongovernmental organizations or private and voluntary 
organizations.

                  Funds Appropriated to the President


                      TRADE AND DEVELOPMENT AGENCY




Fiscal year 2004 level................................       $49,705,000
Fiscal year 2005 request..............................        50,000,000
Committee recommendation..............................        51,500,000


    The Committee is recommending $51,500,000 for the Trade and 
Development Agency (TDA), an increase of $1,795,000 above the 
2004 level and $1,500,000 above the request. The Committee 
commends TDA for its trade capacity activities and its efforts 
to keep the Committee informed of its programs.
    The Committee commends TDA for its efforts to assist 
countries in improving their aviation safety and security 
systems, which have had a positive effect on enhancing United 
States trade for our aviation and aerospace industries. The 
Committee has provided $1,500,000 above the request for TDA to 
conduct a development and training program to assist countries 
with meeting their obligations for international aviation 
security and safety standards. The Committee directs TDA to 
consult with the Committee prior to the obligation of funds for 
this purpose in fiscal year 2005.
    In collaboration with the National Institute of Standards 
and Technology, TDA is encouraged to support United States 
participation in the development of national technical 
standards compatible with American goods and services in key 
transition country markets.
    Additionally, the Committee expects TDA to continue to 
comply with language in the Joint Explanatory Statement of the 
Committee of Conference accompanying H.R. 3289, the Emergency 
Supplemental Appropriations Act for Defense and the 
Reconstruction of Iraq and Afghanistan, 2004 and report 
quarterly to the Committee during fiscal year 2005 regarding 
the agency's activities in Iraq.

                TITLE II--BILATERAL ECONOMIC ASSISTANCE


                  Funds Appropriated to the President


           United States Agency for International Development


              STRUCTURE OF DEVELOPMENT ASSISTANCE ACCOUNTS

    The Committee appropriates funding for longer-term 
development assistance programs managed by the United States 
Agency for International Development (USAID) in two accounts. 
As in fiscal year 2004, the Act includes an account for child 
survival and health programs. It also includes a separate 
development assistance account for other program sectors, 
including economic growth and trade capacity building 
activities, education, environment, and governance. In 
addition, for the second year the Committee appropriates 
funding for the President's Emergency Plan for AIDS Relief in a 
new account, the Global HIV/AIDS Initiative. This funding is 
appropriated to the State Department for use in fifteen focus 
countries and is addressed under a separate heading.
    Three existing regional accounts jointly managed by the 
Department of State and the United States Agency for 
International Development are included elsewhere in title II. 
The Committee utilizes the regional accounts to fund most 
economic and political cooperation with Russia, the independent 
states of the former Soviet Union as well as the nations of 
Central Europe, and several Andean countries.
    Finally, authority is provided for the United States to 
make contributions from the Child Survival and Health Programs 
Fund to two international health funds: the Global Fund to 
Fight AIDS, Tuberculosis and Malaria (the ``Global Fund'') and 
The Vaccine Fund (associated with the Global Alliance for 
Vaccines and Immunizations). Funding for the International AIDS 
Vaccine Initiative is included in the Global HIV/AIDS 
Initiative account.

                Child Survival and Health Programs Fund


                     (INCLUDING TRANSFER OF FUNDS)




Fiscal year 2004 level................................    $1,824,174,000
Fiscal year 2005 request..............................     1,420,000,000
Committee recommendation..............................     1,648,500,000


    The Committee recommends $1,648,500,000 for the Child 
Survival and Health Programs Fund, an amount that is 
$228,500,000 above the request. The recommendation is 
$175,674,000 below the amount enacted for fiscal year 2004.
    The Committee has made available a total of $2,198,500,000 
in this Act for HIV/AIDS, tuberculosis (TB), and malaria, of 
which $885,000,000 is funded through the Child Survival and 
Health (CSH) Programs Fund and $1,260,000,000 is funded under 
the Global HIV/AIDS Initiative account. Another $53,500,000 for 
HIV/AIDS, TB, and malaria is provided through other accounts, 
such as the Economic Support Fund, International Disaster and 
Famine Assistance, and regional accounts for Eastern Europe and 
the former Soviet Union. The comparable figures for HIV/AIDS 
only, without TB and malaria, are discussed under ``HIV/AIDS: 
Summary and Overview''.

         ALLOCATION OF CHILD SURVIVAL AND HEALTH PROGRAMS FUND

    Unless modifications are subsequently notified and agreed 
to by the Committees on Appropriations, fiscal year 2005 
appropriations for the Child Survival and Health Programs Fund 
are deemed to be allocated as follows:

        Category                                              Allocation
Child Survival and Maternal Health......................    $330,000,000
Vulnerable children.....................................      28,000,000
HIV/AIDS (bilateral)....................................     330,000,000
Other Infectious Diseases (including TB and malaria)....     185,000,000
Reproductive Health/Voluntary Family Planning...........     375,500,000
Global Fund to Fight AIDS, TB, and Malaria..............     400,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total in Child Survival and Health Programs Fund..   1,648,500,000
Other health activities in Global HIV/AIDS Initiative...   1,260,000,000
Other health activities in ESF..........................      85,000,000
Other health activities in regional accounts............      86,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total in all Foreign Operations accounts..........   3,079,500,000

    A definition of program categories and their components can 
be found on pages 9 through 11 of House Report 107-142 and 
under the heading ``Family Planning/Reproductive Health'' on 
page 12 of Senate Report 107-58. The United States Agency for 
International Development has also issued guidance on this 
matter.
    The Committee is again including language that prohibits 
the use of certain funds in this account for nonproject 
assistance, or cash grants, to governments. The provision of 
cash grants as general budget support for governments is no 
longer an appropriate development tool, given current funding 
constraints. To the extent that cash grants are necessary for 
countries in transition or for specific foreign policy goals, 
funds are available through the ``Economic Support Fund''.

              CHILD SURVIVAL AND MATERNAL HEALTH: SUMMARY

    The Committee directs USAID to allocate $330,000,000 for 
child survival and maternal health, $5,000,000 more than 
requested.

           CHILD SURVIVAL AND MATERNAL HEALTH: MICRONUTRIENTS

    The Committee recognizes that Vitamin A deficiency affects 
more than 100,000,000 children under age 5 and is responsible 
for as many as one in four child deaths in high-impact areas. 
Vitamin A deficiency decreases children's resistance to disease 
and may also increase maternal deaths. The Committee recommends 
that USAID provide $30,000,000 from all accounts for its 
overall micronutrient program, including at least $20,000,000 
for activities related to Vitamin A deficiency.
    The Committee continues its support for programs that 
address iodine deficiency disorder (IDD), the leading 
preventable cause of mental retardation in children. The 
problems associated with iodine deficiency, including increased 
chances of miscarriage and stillbirth, are particularly of 
concern in the former Soviet republics and southeast Europe and 
regions of Africa and South Asia. A diverse group of private 
and public groups, including Kiwanis International and UNICEF, 
are working to eliminate iodine deficiency through salt 
iodization. The Committee recommends that USAID provide at 
least $2,000,000 for the Kiwanis/UNICEF IDD partnership from 
the Child Survival and Health Programs Fund and at least 
$1,000,000 from Europe and Eurasia regional accounts.

         CHILD SURVIVAL AND MATERNAL HEALTH: POLIO ERADICATION

    The Committee is aware that the global effort to eradicate 
polio is in its final, most challenging phase. The Committee 
continues its strong support within the child survival and 
maternal health allocation and recommends an increase over the 
fiscal year 2004 level of $25,000,000 for the program initiated 
by the Committee nearly ten years ago, in fiscal year 1996.

     CHILD SURVIVAL AND MATERNAL HEALTH: VACCINES AND IMMUNIZATION

    The Committee recognizes that ten million children under 
age five die each year, of which more than 1.5 million could be 
saved if every child received all available vaccines. Vaccines 
already save more than 3 million lives each year. The Vaccine 
Fund, in support of the Global Alliance for Vaccines and 
Immunization (GAVI), is working to expand vaccine coverage. 
Since GAVI's launch three years ago, over $1,200,000,000 for 64 
countries has been committed from all donors for immunization 
and vaccine development programs. The Committee strongly 
supports continued funding for this program, and recommends 
that $65,000,000 be provided to The Vaccine Fund in fiscal year 
2005.

                          VULNERABLE CHILDREN

    The Committee directs USAID to allocate $28,000,000 for 
displaced children and orphans and blind children in fiscal 
year 2005, $18,000,000 more than requested. The Committee 
addresses assistance for children affected by HIV/AIDS 
elsewhere.
    The Committee is concerned that each year an estimated half 
million children go blind, up to 60 percent of whom die in 
childhood. One and a half million children are currently blind, 
and another 7 million suffer from poor vision. The Committee 
recognizes the work done by Helen Keller International and 
other organizations to assist these children, who can often be 
helped through simple and inexpensive methods of prevention and 
low cost care. The Committee recommends that the USAID program 
for children's blindness be funded at $1,700,000.
    The Committee encourages efforts to provide children 
without parents the support and structure they need, such as 
through adoption or long-term mentoring. The Committee supports 
initiatives, such as the work of Kidsave International in 
Colombia, that help children without parents develop such 
relationships.

                     HIV/AIDS: SUMMARY AND OVERVIEW

    The Committee directs USAID to allocate $330,000,000 for 
HIV/AIDS in fiscal year 2005 in this account. The Committee 
appropriates an additional $1,260,000,000 for HIV/AIDS in the 
Global HIV/AIDS Initiative account, anticipates that 
$36,000,000 for HIV/AIDS will be allocated from other accounts, 
and estimates that $240,000,000 of the $400,000,000 made 
available by this Act to support the Global Fund would benefit 
HIV/AIDS programs. In total, the Committee makes available 
$1,866,000,000 for HIV/AIDS. These numbers do not include 
bilateral TB or malaria programs, although there may be some 
overlap. Additional language addressing United States bilateral 
HIV/AIDS funding is found under the heading ``Global HIV/AIDS 
Initiative''.

    HIV/AIDS: RELATIONSHIP TO THE GLOBAL HIV/AIDS INITIATIVE ACCOUNT

    The Committee recommendation represents a different account 
structure than that requested by the President. The request 
includes $500,000,000 for USAID's bilateral HIV/AIDS funding, 
$170,000,000 of which would fund so-called ``baseline'' 
programs in the 15 focus countries of the Emergency Plan for 
AIDS Relief. To simplify budget processes and improve 
transparency, the Committee has recommended appropriating 
$170,000,000 for the ``focus'' countries directly into the 
Global HIV/AIDS Initiative account. No bilateral HIV/AIDS 
funding for the ``focus'' countries is included in Child 
Survival and Health Programs Fund.
    The Committee's recommendation does not include funding for 
the United Nations Joint Programme on HIV/AIDS (UNAIDS) or for 
the International AIDS Vaccine Initiative, as in previous 
years. These activities are now to be funded from the Global 
HIV/AIDS Initiative account.
    By making this shift, the Committee has made available over 
$50,000,000 for use on USAID's bilateral HIV/AIDS activities. 
The Committee strongly urges USAID to allocate these additional 
funds to its HIV/AIDS programs in the ``non-focus'' countries.

                       HIV/AIDS: MEDIA EDUCATION

    Use of media outlets has proven to be an effective tool to 
spread prevention, treatment, and care messages, as well as to 
overcome stigma and discrimination against those infected and 
affected by HIV/AIDS. The Committee recommends that USAID at a 
minimum sustain its current media programs and consider 
expanding to other countries, especially to India and other 
countries in Africa.

            OTHER INFECTIOUS DISEASES: SUMMARY AND OVERVIEW

    The Committee directs USAID to allocate $185,000,000 for 
other infectious diseases, including tuberculosis (TB) and 
malaria, $46,000,000 more than requested. An additional 
$17,500,000 for TB and malaria is provided from other accounts, 
and the Committee estimates that $68,000,000 and $92,000,000 of 
the Global Fund contribution would benefit TB and malaria, 
respectively, given historical funding patterns.

                   OTHER INFECTIOUS DISEASES: MALARIA

    The Committee's recommendation includes not less than the 
fiscal year 2004 level for malaria. More than 300-500 million 
cases of this disease occurred this year, resulting in one 
death every 30 seconds, mostly in African children. The 
Committee urges USAID to continue a comprehensive approach to 
fighting malaria, including its work to strengthen national 
drug formularies and distribution systems to ensure that the 
most appropriate anti-malarial drugs are utilized. USAID should 
fund the Medicines for Malaria Venture, a public/private 
partnership leading the effort to develop new, affordable 
malaria drugs, at not less than the fiscal year 2004 level, and 
continue support for the Malaria Vaccine Initiative. The 
Committee requests that USAID report not later than 90 days 
following enactment of this Act to the Committee on its support 
for indoor residual spraying (IRS), including an evaluation of 
the price, and physical and environmental impacts, of different 
insecticide options.

              OTHER INFECTIOUS DISEASES: TUBERCULOSIS (TB)

    The Committee recognizes that the global TB pandemic 
continues largely unabated despite widespread international 
cooperation against the disease. Each year there are eight 
million new TB cases and two million people die from the 
disease. Another million die from the combination of AIDS and 
TB. The Committee includes not less than the fiscal year 2004 
level for TB.
    As with HIV/AIDS, malaria, and other diseases, the fight 
against TB must take place on many fronts. The Global TB Drug 
Facility (GDF) supports expanded access to, and availability 
of, high-quality TB drugs to facilitate expanded global 
treatment against the disease. The Committee encourages the 
increased cooperation between GDF and the Global Fund to Fight 
AIDS, TB and Malaria, and urges USAID to provide support to the 
GDF of not less than the level provided in fiscal year 2004. 
The Committee also urges USAID to consider support for TB 
vaccine research and development programs, including public-
private partnerships.
    The Committee notes the link between TB and HIV, especially 
in sub-Saharan Africa where up to two-thirds of TB patients are 
also infected with HIV. TB is the world's leading killer of 
people with HIV, and the Committee urges even greater 
cooperation between the TB program at USAID and the Office of 
the Global AIDS Coordinator. The Committee encourages joint 
funding of sites, such as clinics that detect and treat both TB 
and HIV. The Committee urges USAID and the Global AIDS 
Coordinator to support efforts to develop and deploy improved 
approaches for rapid TB testing suitable for use in developing 
countries. The Committee also notes the importance of regional 
education and awareness-building activities, including the 
ongoing work of Stellenbosch University in South Africa.

  OTHER INFECTIOUS DISEASES: ANTIMICROBIAL RESISTANCE AND SURVEILLANCE

    Public health systems are the first line of warning for 
disease outbreaks, an ability that is even more crucial in a 
time of potential bioterrorism events. The Committee strongly 
supports the efforts of USAID, working with its United States 
and international partners, to strengthen the disease 
surveillance and response systems in developing countries.
    The Committee continues its support for the efforts of 
USAID and the Centers for Disease Control and Prevention to 
reduce the spread of antimicrobial resistance. As international 
health initiatives, including the Emergency Plan for AIDS 
Relief, increase the global use of drugs, fighting drug 
resistance will become even more critical.

                      REPRODUCTIVE HEALTH OVERVIEW

    The Committee has restored the fiscal year 2004 funding 
level by providing a total of $432,000,000 for reproductive 
health/voluntary family planning, $28,600,000 more than 
requested by the President. The Committee expects that 
$375,500,000 of this total will be derived from the Child 
Survival and Health Programs Fund.

      REPRODUCTIVE HEALTH/VOLUNTARY FAMILY PLANNING: RESTRICTIONS

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

 VOLUNTARY CONTRIBUTION TO THE GLOBAL FUND TO FIGHT AIDS, TUBERCULOSIS 
                              AND MALARIA

    In order to encourage contributions from other donors and 
to improve the disbursement of grants approved by the Global 
Fund to Fight AIDS, Tuberculosis and Malaria (Global Fund), the 
Committee directs that not less than $400,000,000 be provided 
from the Child Survival and Health Programs Fund to support the 
Global Fund. This funding is subject to provisions in Public 
Law 108-25, including the ``matching funding'' provision, and 
to additional provisions contained in this Act. Any funding not 
released to the Global Fund due to the provisions in this Act 
or Public Law 108-25 should be used by the Global AIDS 
Coordinator for bilateral activities, including additional 
funding to ``non-focus'' countries. The President has requested 
$100,000,000 for the Global Fund in this Act and an additional 
$100,000,000 for the Global Fund from the Act providing 
appropriations for the Department of Health and Human Services.
    The Committee has long supported funding for the Global 
Fund as a component of the United States strategy for fighting 
AIDS, tuberculosis, and malaria. The Committee continues its 
support for the Fund this year with additional direction to 
improve the Fund's operations. The Committee has included these 
recommendations, and backed them with the conditions contained 
in section 525, in the belief that they will help to strengthen 
the donor, recipient, and civil society support needed to 
sustain the Fund over the long-term. Many challenges lie ahead 
in the fight against these three diseases, and the world needs 
the Global Fund to be the innovative mechanism it was promised 
to be.
    The Global Fund was designed to be governed by a strong 
Board overseeing a Secretariat with responsibility for day-to-
day operations of the grant process. The composition of the 
Board as well as its operational structures would represent a 
public-private partnership--at the global and country levels--
that would focus on civil society involvement, local ownership, 
results, accountability, and additionality with other donor 
programs. The Committee is concerned that the Fund is moving 
away from this model, particularly by devolving too much 
responsibility to the Secretariat, including decisions directly 
affecting the amount and purpose of grants.
    To date the Global Fund has approved $2,059,000,000 in 
grants, of which only $400,000,000 have been disbursed to 
countries. Of this $400,000,000, only a fraction has reached 
those in need. It is critical for the Fund to show that the 
billions of dollars that donors have committed are being used 
expeditiously and efficiently. The Committee strongly urges the 
United States representation to the Fund's Board to encourage 
the Secretariat to shift its priority toward improving the 
speed and transparency with which funds are received and 
actually spent by principal grant recipients.
    The Committee understands that some of the obstacles to 
improved disbursements can be overcome through well-designed 
and well-implemented technical assistance. For instance, 
principal recipients may not have the technical capacity to 
manage large sums of money, and implementers may also lack 
absorptive capacity to ramp up quickly. To assist in overcoming 
these obstacles, the Committee makes available up to 
$20,000,000, or 5 percent of its allocation to support the 
Global Fund, to USAID to provide technical assistance related 
to Global Fund activities. The Committee also urges the office 
of the Global AIDS Coordinator to consider grants to other 
appropriate entities for such technical assistance.
    This technical assistance should be targeted to 
strengthening country coordinating mechanisms and improving the 
capacity of principal recipients to disburse funding in an 
expeditious, effective, transparent and accountable manner. It 
is the Committee's intention that this assistance be used to 
help the Fund and the recipient countries more effectively use 
the assistance already approved by the Board, rather than to 
increase the ``pipeline'' of approved grants.

                       GLOBAL FUND CONDITIONALITY

    In section 525, the Committee conditions the release of any 
contribution to the Global Fund on a report and certification 
by the Secretary of State.
    First, the Secretary of State must certify that the Global 
Fund is working to establish an office analogous to an 
Inspector General, charged with monitoring the integrity of 
processes for consideration and approval of grant proposals, 
and the implementation, monitoring and evaluation of grants. 
This office must be full-time, independent, and report directly 
to the Global Fund Board. The Committee considers the current 
body charged with internal oversight to be inadequate for 
several reasons, including its composition by appointment, its 
ad hoc status, and its accountability to the Secretariat rather 
than to the Board of the Fund. To ensure unbiased and complete 
reporting, this new office must ensure the anonymity and 
confidentiality of its sources, including whistleblowers, and 
it should receive direct input from country-level entities, 
such as country coordinating mechanisms (CCMs) and their 
members.
    Additionally, the Committee is concerned that the Global 
Fund is not comprehensively assessing its needs for technical 
assistance, and includes a reporting requirement on steps the 
Global Fund is taking to comprehensively assess those needs and 
coordinate donors' technical assistance activities.
    The Committee also requires reporting on the Global Fund's 
efforts to strengthen the participation of civil society in its 
country-coordinating mechanisms (CCMs), in response to 
criticism that these mechanisms are dominated by international 
NGOs and host government agencies. The Committee is concerned 
that many CCMs have been criticized for being dominated by host 
government agencies, international NGOs, and donor agencies. 
Steps should be taken to ensure local NGOs and people living 
with one of the diseases assume an appropriate role in these 
bodies.
    Pressure to show results must not undermine the 
accountability of the Fund to its results-driven mandate. The 
Committee is aware that the Secretariat has made disbursements 
to principal recipients even when previously disbursed funds 
have not yet been spent. Section 525 requires a certification 
that the Fund has developed clear, consistent progress 
indicators to determine under what conditions disbursements may 
be released, and that the Fund is releasing disbursements only 
once sufficient progress toward those indicators has been made.
    In past years the Committee included a two-to-one burden-
sharing arrangement to encourage contributions by other donors 
to the Fund. Last year this provision was made permanent and, 
as such, is no longer included.

                         HEALTH CARE IN AFRICA

    The Committee continues to be concerned about the 
debilitation and ostracism caused by obstetric fistula, which 
affects an estimated 3 million women in the developing world. 
This condition can often be prevented altogether by trained 
birth attendants and improved medical care. Restorative surgery 
has a high success rate and relatively low cost, often in the 
range of $100-$400. The Committee notes that USAID for the 
first time funded programs last year to prevent and repair 
obstetric fistula. The Committee urges that agency to increase 
its support for these programs to $6,000,000 in fiscal year 
2005.
    While improving the health of Africans is a long-term 
prospect, alleviating human suffering is a pressing imperative. 
Groups that combine immediate health services with longer-term 
training can make a lasting difference for those in need. One 
such group, Mercy Ships, provides obstetric fistula operations, 
orthopedic and ophthalmic surgeries, primary healthcare 
education, and sanitation and pure water programs. The 
Committee understands that Mercy Ships has specific operational 
needs of up to $9,500,000, and urges USAID to consider and, 
where feasible, provide support to an application from this 
organization.
    The Committee recognizes the work done by the John F. 
Kennedy Memorial Hospital in Monrovia, Liberia, particularly in 
light of the recent war in that country and the fact that over 
60% of those admitted in 2003 were war-wounded patients. The 
Committee recognizes that USAID has made funding available to 
this hospital in past fiscal years, and urges it to consider 
requests for further funding in fiscal year 2005.

                     HEALTH CARE IN HAITI AND INDIA

    The Committee notes that the hospital Bienfaisance de 
Pignon in Pignon, Haiti, a 60-bed facility with four outlying 
medical clinics, is providing much needed quality health care 
to the people of Haiti. The Committee urges USAID to consider 
continued support for this important medical service.
    The Committee recognizes that stigma and discrimination 
continue to plague many countries and communities affected by 
HIV/AIDS. Often, sex workers and their children and orphans 
lack access to adequate health services. The Committee notes 
the work of Bombay Teen Challenge Hospice of Hope for HIV 
Treatment to improve care and treatment for HIV-positive 
children, including orphans, and women.
    The Committee notes that intestinal worm infestation is a 
major contributing factor to poor nutrition for children in the 
developing world, and urges USAID to consider support for 
programs, such as the World Health Organization's Partnership 
for Parasite Control, to address this problem.

          GRANT TO THE UNITED NATIONS CHILDREN'S FUND (UNICEF)

    As in the fiscal year 2004 Act, the Committee includes a 
grant to UNICEF under the heading ``International Organizations 
and Programs'' instead of within the Child Survival and Health 
Programs Fund.

                         Development Assistance





Fiscal year 2004 level................................    $1,376,829,000
Fiscal year 2005 request..............................     1,329,000,000
Committee recommendation..............................     1,429,000,000


    The Committee recommends $1,429,000,000 for the general 
account for development assistance for economic growth, trade 
and environment. Funding in this account includes worldwide 
activities for free market economic development, agriculture, 
rural development, literacy and basic education for children 
and adults, environment, energy, science and technology and 
other programs related to longer-term development.

                         IMPORTANCE OF RESULTS

    The Committee recognizes an effective foreign assistance 
program must set transparent goals and measure progress toward 
or achievement of those goals in tangible ways. Results rather 
than resource levels should be the yardstick for measuring 
United States assistance programs. An effective foreign aid 
program must take account of the host country context, most 
especially those governmental policies that affect sectors in 
which United States assistance operates. It must also take into 
account the private sector, including foreign capital and trade 
flows, as well as assistance provided by other donors, both 
official and unofficial. The Committee encourages the State 
Department and USAID to continue and improve upon the 
analytical work that sets tangible, realistic goals and 
measures progress toward those goals.

                       ECONOMIC GROWTH: OVERVIEW

    The Committee considers sustainable economic growth--which 
can only happen in the context of free markets--USAID's most 
important long-term objective. Without sustained economic 
growth, USAID's development programs for health, population, 
environment and other purposes, can have only marginal or 
transitory benefits in poor countries. Lasting improvement in 
social conditions can come only when countries themselves are 
able to generate the necessary resources to invest in their 
people.
    In the near-term, the Committee continues to support 
increases in USAID resources for health improvement through the 
Child Survival and Health Programs Fund. But improved social 
conditions of children matter only if the future economies of 
these countries can provide employment for these healthier 
citizens. Therefore, the Committee encourages USAID to increase 
funding for free market economic development in its development 
programs.
    The Committee continues to support USAID technical 
assistance programs to encourage macro-level economic growth. 
These include programs to assist with privatization of state-
run industry and legal and regulatory reform to modify trade 
and tax barriers that stifle local entrepreneurs and which 
deter foreign United States investment. In addition, USAID 
technical help for improving energy, transportation, 
telecommunication, and finance sectors is key to directly 
improving the economic climate of poor countries. Essential to 
this, USAID must continue to search out reform-minded 
government leaders without whom these programs cannot succeed. 
The Millennium Challenge Corporation is based on this approach.
    The Committee supports the efforts of USAID to better 
coordinate with the United States Trade Representative and 
other concerned agencies the significant amounts of aid already 
being committed to assist other countries to strengthen their 
trade-related laws and regulatory regimes. It is in the United 
States national interest to ensure that relevant economic 
growth funds are programmed to complement trade negotiating 
objectives.

                HUMAN CAPACITY BUILDING: BASIC EDUCATION

    Education is part of the foundation for sustained economic 
growth and the creation of democratic institutions in 
developing countries. Section 579 of Public Law 108-401 
required the Secretary of State, in consultation with USAID, to 
articulate a strategy for the use of basic education funds, 
with particular reference to country strategies, administrative 
structures and efforts to increase the administrative capacity 
of USAID and the Department of State with respect to basic 
education. The report (``Basic Education Report to Congress'') 
was compiled by USAID, with input from the Department of State 
and other agencies, and submitted to Congress on May 21, 2004.
    The Committee appreciates USAID's attempt to be responsive 
to the requirements of the legislation. The report notes the 
United States Government has endorsed the Monterrey Consensus, 
which emphasizes that host countries bear the principal 
responsibility for their own development. It also references 
the Dakar Framework for Education for All and the United 
Nations' Millennium Development Goals, which hope to ensure 
that all children will be able to complete a full course of 
primary education by 2015. At the Committee's direction, USAID 
increased spending on basic education from $103,000,000 in 2001 
to $326,500,000 in 2004, with an increase in the number of 
country programs from 20 to 43 over the same period. The report 
also states each United States Government ``agency focuses on 
different areas of need according to its mandate, comparative 
advantage, organizational structure, and internal guidelines'' 
and notes ``a consciously decentralized approach that 
emphasizes coordination at the country level.'' The appendices 
to the report provide country program information submitted by 
USAID, the State Department, the Peace Corps and other 
agencies.
    While useful, the report does not provide an articulated 
strategy on the use of basic education funds nor does it 
specifically address how USAID plans to manage increased 
funding. Such a strategy would reflect the scope of the 
problems (illiteracy and innumeracy) in developing countries, 
the efforts of host country governments at all levels to 
increase access and quality of education, the efforts of other 
donors (the World Bank alone, for example, lent $2,350,000,000 
for education in 2003) and more detailed information on the 
United States Government's programs. In line with a focus on 
results, such a strategy could describe United States 
Government financed inputs--scholarships, textbooks, teacher 
training programs, curriculum reforms, school buildings and 
other physical infrastructure--and how these inputs lead to 
desired outcomes, such as increased literacy and gender 
equality. To ensure a focus on results and to ensure that all 
United States Government funded efforts on education overseas--
including that provided by the World Bank--are included, the 
Committee requires the Secretary of State to prepare a report 
to Congress within 120 days of enactment. The Department of 
State should consult with the Committee on the material to be 
included in the report. The Committee also urges the Executive 
Office of the President to consider creation of an interagency 
task force to develop a comprehensive education strategy, and 
to enhance coordination of basic education assistance across 
agencies.
    The Committee notes governments of many developing 
countries require families to pay fees for their children 
attending school. The purpose of the fees is to increase 
resources available for education. For low income families, 
however, these fees become major barriers to school enrollment 
among children, and especially girls. While abolishing school 
fees would ostensibly solve this problem, it would also reduce 
financial resources available for education, which in turn 
would reduce the quality or availability of education by 
leading to shortages of teachers, supplies and infrastructure. 
To facilitate the exploration of innovative ways to address the 
issue of school fees, the Committee has set aside $15,000,000 
in basic education funding through the Development Assistance 
account for a pilot project in holistic school reform. The 
Committee directs USAID, in consultation with the Committees on 
Appropriations, to design and fund a regional demonstration 
program in one country in Africa that abolishes school fees, 
provides an incentive to host country governments (federal, 
provincial or local) to increase financial resources for local 
education on a sustained basis, increases parent and community 
involvement in local education, and ensures infrastructure that 
meets the needs of both male and female students.
    The Committee supports the work of Alfalit International, 
an educational nongovernmental organization dedicated to 
promotion of literacy, elementary education, and community 
development in Africa and Latin America. Alfalit's proven 
record during the past three decades has helped significantly 
reduce child and adult illiteracy throughout Latin America and 
Africa. The Committee also supports the work of ProLiteracy 
Worldwide and its Literacy for Global Peace, Freedom and 
Security Project, which would empower adults from across the 
world to develop basic literary skills. Finally, the Committee 
supports the work of the Amanut Society, a non-profit entity 
involved with educational development activities.

          HUMAN CAPACITY BUILDING: WOMEN'S LEADERSHIP TRAINING

    The Committee notes many of the recommendations made to 
USAID regarding the Office of Women in Development (WID) over 
the course of the last two fiscal years have largely been 
ignored. The Committee continues to believe a WID office 
empowered to monitor, assess, and make recommendations 
regarding the quality of gender integration at USAID could be 
of great benefit to the agency.
    The Committee is aware of the ``Gender Audit'' tool, 
developed by the InterAction Commission on the Advancement of 
Women, which helps development organizations assess their 
institutional commitment to integrating considerations of 
gender into management and field programs. The ``Gender Audit'' 
aims to ensure participating organizations have the technical 
capacity, organizational culture, and accountability structure 
to mainstream gender issues effectively in to their activities. 
USAID could benefit from a self-assessment based on the 
``Gender Audit'' model of its own institutional capacity in 
this regard. The Committee directs USAID to report no later 
than 60 days after enactment of this Act on its plans with 
respect to an assessment.
    The Committee also directs not less than $15,000,000 shall 
be made available only for programs to improve women's 
leadership capacity.

                        TRADE CAPACITY BUILDING

    Trade capacity building (TCB) programs are critical 
elements of development assistance because of their large 
multiplier effects on economic growth, poverty reduction and 
promotion of the rule of law. These programs help developing 
countries participate in and benefit from the global trading 
system. Economic growth provides much needed resources to 
finance social investments in developing countries. Over time, 
growth through trade reduces dependency on official aid.
    For fiscal year 2005, the Committee provides $194,000,000 
for trade capacity building efforts, the same level the House 
supported last year in this account. The Committee requests 
that USAID prioritize these resources where economic growth can 
best be achieved particularly in the context of building 
developing country capacity to implement and benefit from 
special trade arrangements with the United States. Programs of 
particular importance include trade facilitation through 
improvements in customs, sanitary and phyto-sanitary measures; 
improvements in governance and transparency regarding 
government procurement; and related regulatory reforms that may 
be necessary for the developing country to benefit fully from 
the trading arrangement.
    Programs should also include trade policy and related 
training for government officials, such as customs officers, 
environmental analysts, trade and investment policy officials, 
patent and copyright officials, food safety inspectors, and 
financial service regulators; technical assistance for 
environmental reviews; technical assistance and other 
initiatives that foster trade policy coordination among 
government agencies to improve effectiveness and transparency, 
and to improve outreach to civil society and the private 
sector; and technical assistance to improve government 
agencies' statistical and analytical capabilities in the areas 
of trade, investment and services.
    The Committee expects that these resources will be used to 
respond to developing country requests for assistance.
    Inter-agency coordination is key to the creation and 
implementation of practical and effective TCB work plans. The 
Committee encourages USAID to continue to exercise leadership 
and participation in the interagency process and to be an 
active partner in TCB action plans created by developing 
countries. Where appropriate and throughout all regions, the 
Committee supports USAID's efforts to use these resources in 
inter-agency agreements or otherwise to accomplish development 
objectives, particularly in the context of labor and 
environmental cooperation related to special trading 
arrangements with the United States. These efforts do not 
specifically need to be related to trade capacity building. 
This is particularly true in the context of the African Growth 
and Opportunity Act and free trade agreements the United States 
is negotiating.
    The Committee recognizes that, more than other forms of 
development assistance, trade capacity building programs 
require increased flexibility because their implementation must 
track the ever-changing dynamics at multilateral, regional and 
bilateral levels. Therefore, the Committee urges USAID to be 
able to account for the shifting nature of developing country 
efforts to integrate into the global economy by being able to 
make continual adjustments to five-year strategic plans that 
run the risk of being outdated.
    In resource allocation and programming, USAID should also 
consult with the Office of Trade Capacity Building of the 
United States Trade Representative. When responding to trade 
capacity building proposals or action plans by developing 
countries, USAID also should solicit expertise from relevant 
federal agencies such as Customs, Department of Commerce's 
Commercial Law Development Program, United States Food and Drug 
Administration, the Department of Agriculture's Animal and 
Plant Health and Inspection Service, and the International 
Trade Commission.
    The Committee believes a complete and accurate geographic 
information system and computer aided mass appraisal should be 
initiated to provide the highest possible data sets to agencies 
that provide political, economic and defense services to 
Central American Free Trade Agreement countries. The committee 
strongly encourages USAID to undertake such a project utilizing 
existing National Geospatial-Intelligence Agency (NGA) small-
business prime contractors under the NGA Global Geospatial 
Intelligence program.

                     GLOBAL ISSUES: PROPERTY RIGHTS

    Property rights, sound regulation of commercial activity 
and other components of the rule of law are adversely affected 
by inefficient, lengthy and often corrupt systems of 
registering small businesses and land titles. The Committee 
endorses programs that promote property rights and create 
private real estate markets in selected countries where USAID 
is active in Latin America, the former Soviet bloc and North 
Africa. The Committee has provided sufficient funds for USAID 
to continue to fully fund its cooperative agreement with the 
Institute for Liberty and Democracy and to expand the 
International Real Property Foundation program into a worldwide 
effort.

                     GLOBAL ISSUES: URBAN PROGRAMS

    Massive urbanization is occurring throughout the developing 
world. Cities that are overcome by the mass migration of those 
seeking economic improvements can become centers of 
environmental devastation, health epidemics and social unrest. 
The Committee is concerned that USAID's focus on urban issues 
is diminishing even as urban-specific problems are 
accelerating. USAID should study and report to the Committee on 
agency-wide use of funds directed toward urban development 
programs. The report should discuss the manner, level and 
potential results of possible USAID interventions in these 
programs. It should also discuss the efforts of other donors 
and host governments to address these problems.

   GLOBAL ISSUES: CLEANER ENERGY, RELIABLE POWER AND THE ENVIRONMENT

    Many environment challenges, from urban pollution to rural 
deforestation, result from failures to develop cleaner and more 
efficient energy sources. Where lead continues to be used in 
gasoline, diesel generators substitute for electricity from 
unreliable grids, and areas surrounding towns and villages are 
denuded of vegetation in the daily search for cooking fuel, 
humans and their environment are degraded. The Committee 
welcomes the focus of the President and Secretary of State on 
power generation for sustainable development.
    The Committee recommends a renewed emphasis on hydropower 
with a $3,000,000 grant to a specialized non-governmental 
organization representing the United States hydropower industry 
to provide project development and implementation services. The 
Committee directs USAID to consult with the Committee on its 
plans for the allocation of these funds. As with other power 
and energy sectors, USAID has a key role in assisting foreign 
governments, international financial institutions, and the 
local private sector to establish necessary energy and 
investment framework and governance practices in emerging 
markets.
    The Committee continues to support the work of the 
Foundation for Environmental Security and Stability to address 
critical United States national security interests in the 
context of regional instability arising from resource scarcity, 
natural hazards and other environmental stresses.
    The Committee recommends $2,000,000 for USAID to 
participate in Project Atmospheric Brown Cloud, whose objective 
is to assess the impact of the air pollution and persistant 
brown haze in Asia on the region's agriculture, monsoon rains 
and public health.

       GLOBAL ISSUES: ACCESS TO CLEAN WATER AND WATER MANAGEMENT

    The Committee notes that 2005 is the final year of the 
$970,000,000 Presidential Water for the Poor Initiative, 
announced in Johannesburg, South Africa, in August 2002. As 
noted in previous Committee reports, competition for scarce 
fresh water is predicted to be a major source of international 
conflict during the twenty-first century, as it is now within 
the Middle East. Elsewhere, intra-regional cooperative programs 
for water management, from the Indus Water Agreement between 
India and Pakistan more than 40 years ago to the new South Asia 
Water Resources Program, are notable accomplishments for 
international development assistance.
    In Africa, especially in communities severely impacted by 
HIV/AIDS, ready access to clean water is lacking, resulting in 
increasing rates of water-borne diseases and higher infant 
mortality rates. The Committee urges the President to direct 
not less than $50,000,000 from this Act to build wells in rural 
areas and secure water delivery systems in urban areas of 
African communities that lack access to fresh water. Up to 
$9,000,000 of this amount should be made available for rural 
water and sanitation in east Africa.

                      GLOBAL ISSUES: BIODIVERSITY

    The Committee applauds the accomplishments of USAID in 
integrating biodiversity and forest management in its economic 
and social development programs. The Committee urges USAID to 
provide not less than $110,000,000 in fiscal year 2005 for its 
biodiversity and related environment programs.
    The Committee again recommends that USAID continue to 
provide $500,000 to support the Neotropical Raptor Center in 
Panama to conserve birds of prey in the Panama Canal watershed 
area and throughout the new-tropics. The Committee notes that 
the Center receives matching private financing for this 
project.

        ECONOMIC GROWTH: COLLABORATIVE RESEARCH SUPPORT PROGRAMS

    The Committee supports the continuation of the 
collaborative research support programs (CRSPs) and urges USAID 
to increase funding for the CRSPs in fiscal year 2005 to 
$28,000,000. The Committee believes CRSPs are excellent 
investments, funding for which should be increased rather than 
reduced. The Committee notes that agricultural research and 
development has led to greater economic development, increased 
income, and a more available food supply for the world's poor. 
The Committee supports the creation of a new CRSP to focus on 
water issues.

                    ECONOMIC GROWTH: MICROENTERPRISE

    In most developing countries, small, informally organized 
businesses--microenterprises--constitute the vast majority of 
business enterprises. Microenterprises are the source of 
employment and income for hundreds of millions of people in 
developing countries. To flourish, microenterprises need a 
congenial policy environment and growing markets, as well as 
capital and technical assistance. The Committee expects USAID's 
programs to reach the largest possible number of 
microenterprises, whether through grants to private, non-
governmental organizations that on-lend to microenterprises or 
by sponsoring economic policy reforms that directly stimulate 
such enterprises. The Committee expects USAID to achieve the 
fiscal year 2004 authorization level (enacted as part of Public 
Law 108-31) of $200,000,000. Furthermore, in order to maximize 
service delivery to poor clients, the Committee directs USAID 
to take measures to preserve the viability of the leading 
private NGO Microfinance Networks, and to consult with the 
Committee on these measures.

                     CREDIT UNIONS AND COOPERATIVES

    The Committee recognizes the important role that United 
States credit unions and cooperatives play in overseas 
programs. Cooperatives are a means to lift low-income people 
out of poverty through their own efforts by mobilizing equity 
and savings for community-based economic growth. The Committee 
recommends adequate funding for the Office of Private Voluntary 
Cooperation for cooperative development organizations.
    The Committee notes the role of electrification in rural 
and economic development strategies and supports a cooperative 
approach, in the context of free markets, to bring reliable 
electricity to rural areas around the world. The Committee 
urges USAID to consider increases in funding for rural 
electrification programs in developing countries.

                        LATIN AMERICA: OVERVIEW

    The Committee is disappointed that USAID has ignored 
Committee report language from prior years urging that greater 
emphasis be provided for programs in Latin America. The 
Committee notes that the President's request for this region 
from Development Assistance and the Child Survival and Health 
Programs Fund are substantially less than the combined level 
for both accounts enacted and allocated in fiscal year 2004. 
The Committee is concerned that the Central American nations 
received disproportionate reductions in the request and does 
not believe that this reflects the priorities of United States 
economic, trade, humanitarian and immigration policies with 
these neighboring countries. Therefore the Committee directs 
the Administrator of USAID to provide assistance to Central 
American nations from Development Assistance and the Child 
Survival and Health Programs Fund at a combined level not less 
than that provided in fiscal year 2004.
    The Committee recommends up to $1,000,000 for fire 
prevention and suppression activities in connection with annual 
spring agricultural fires in Mexico and Guatemala.
    The Committee notes with approval that the current 
President of Nicaragua has launched a wide-ranging anti-
corruption campaign. His government has indicted a former 
President and many high ranking former government officials. 
The current President and his administration have worked with 
the assistance of United States Department of Justice in regard 
to several of these investigations.
    The Committee commends the President of Guatemala for his 
efforts to combat the endemic corruption and violence that has 
impeded Guatemala's development after so many years of civil 
strife. The new Government of Guatemala's efforts to reform 
democratic institutions and combat corruption have created a 
great opportunity for all Guatemalan people at this critical 
juncture in Guatemalan recent history.

          LATIN AMERICA AND THE CARIBBEAN: SCHOLARSHIP PROGRAM

    The Committee commends the Cooperative Association of 
States for Scholarships (CASS) for its effective approaches to 
providing individuals with the skills that enable them to 
contribute effectively to the economic growth of their 
communities and nations. The Committee notes that the CASS 
program has offered technical education, job training, and 
leadership skills to young adults and leaders from communities 
of Central America and the Caribbean in fields such as 
agriculture, education, business, construction, environmental 
science, health care and technology training. The Committee 
expects USAID to fully fund the current CASS agreement. The 
Committee also notes that the CASS program is undertaking new 
activities in Mexico in support of the Administration's efforts 
to strengthen the United States-Mexico relationship, and 
believes that the program's long history in Haiti could 
contribute significantly to USAID efforts in that nation.

                                 HAITI

    The Committee is concerned about the emergency humanitarian 
crisis in Haiti and has provided $50,000,000 under the heading 
``Economic Support Fund'' to be in addition to the $24,488,000 
requested by the President for Haiti in the Development 
Assistance and Child Survival and Health Programs Fund accounts 
for fiscal year 2005. In the short term, funding will support 
the restoration of electricity and clean water, the acquisition 
of fuel to run portable generators and facilitate the repair of 
the country's infrastructure, including port dredging, water 
treatment and supply, and sewage processing. The Committee 
expects the Department of the Treasury to support multilateral 
development bank projects, provided in the form of grants.

                         GLOBAL COFFEE STRATEGY

    The Committee recognizes the work of USAID in Latin America 
to combat the global coffee crisis, including technical 
assistance, crop diversification, and public-private 
partnerships. The Committee supports an expansion in programs 
relating to access to micro-credit for coffee cooperatives and 
farmers affected by the global coffee crisis. The Committee 
directs USAID and the State Department to implement the 
following strategy: support prime coffee areas to improve 
productivity and quality, and assist them in gaining access to 
premium markets such as fair trade and organic; assist less 
competitive coffee farms in crop diversification and other 
forms of site-appropriate economic development; and work to 
facilitate public-private long term partnerships between 
growers and industry.

                    ASIA: ECONOMIC GROWTH ACTIVITIES

    Technical assistance in support of updated commercial 
policies and legal structures promotes United States trade 
with, and investment in, Asia. This approach to development 
assistance should continue to be a high priority, and the 
Committee again directs USAID to make available, for a fourth 
year, $60,000,000 for these and other economic growth 
activities.

                 AMERICAN SCHOOLS AND HOSPITALS ABROAD

    The Committee directs USAID to provide up to $20,000,000 
for the American Schools and Hospitals Abroad (ASHA) program in 
fiscal year 2005, with the full required amount obligated in 
fiscal year 2005. The Committee further expects that support 
will be continued, as new resources are needed, for traditional 
recipients in the Middle East. The Committee expects USAID to 
keep it well informed regarding institutions which have 
received ASHA funding in previous years, but which continue to 
have significant unexpended balances. In addition, funds should 
be made available for other deserving institutions in all 
geographical regions, especially in sub-Saharan Africa.
    The Committee notes that innovative medical technology such 
as haptic medical simulation can help train medical personnel 
in medically underserved developing countries. Such technology 
can provide a safe alternative to practicing on human subjects 
for a variety of procedures, such as intravenous therapy and 
endoscopy, and should be considered for use where appropriate.

       GLOBAL ISSUES: THE ROLE OF GIRLS AND WOMEN IN DEVELOPMENT

    The Committee recognizes the importance of improving the 
economic and social situation of women and girls through 
respect for legal rights and expanded access to educational 
opportunities, adequate health care, and credit. Over the past 
year, the Department of State has allocated significant 
resources from the Economic Support Fund in order to improve 
the economic and social situation of women in the Middle East.

              INTERNATIONAL FERTILIZER DEVELOPMENT CENTER

    The Committee supports the fertilizer-related research and 
development being conducted by the International Fertilizer 
Development Center (IFDC) and recommends the Administrator of 
USAID make $2,300,000 available for the core grant to IFDC, a 
center established to support USAID.

                           DAIRY DEVELOPMENT

    USAID indicates it provided $21,000,000 to development 
projects associated with the dairy industry in developing 
economies. Many of these projects have provided safe, 
nutritious and affordable food to the local populations, 
fostered growth of small businesses through reform of local 
government policies, and empowered stakeholders in projects, 
especially women, through job creation and increased incomes. 
Such projects also allow the United States dairy industry to be 
more competitive by promoting American technology, equipment, 
inputs and industry-based technical assistance abroad. As USAID 
continues to develop its priorities in developing agricultural 
capacity around the world, the Committee continues to strongly 
recommend that USAID support dairy-related programs.
    The Committee directs USAID to fund such programs at not 
less than $20,000,000 in fiscal year 2005. These projects 
should facilitate efforts by United States dairy livestock 
businesses and organizations to engage emerging markets in 
developing local sustainable enterprises capable of delivering 
dairy livestock-related goods and services.
    The Committee requests USAID to provide a report not later 
than March 31, 2005, outlining its actions in meeting the above 
directives, and advises USAID to be more rigorous in its 
determination of which projects comply with this directive.

                       TORTURE TREATMENT CENTERS

    The Torture Victims Relief Act of 1998 states that 
assistance to foreign treatment centers ``shall be provided in 
the form of grants to treatment centers and programs in foreign 
countries that are carrying out projects or activities 
specifically designed to treat victims of torture for the 
physical and psychological effects of the torture.'' The 
Committee urges USAID to ensure that this program complies with 
the congressional authorization. By so doing, USAID will be 
helping to ensure the growth of indigenous institutions 
providing culturally appropriate care to their torture victims 
and seeking to prevent and eventually eliminate the practice of 
torture in their country. The Committee recommends that USAID 
devote $12,000,000 for this program in fiscal year 2005. The 
Committee requests that USAID report on implementation of these 
recommendations not later than 60 days of enactment of this 
Act.

                           VOLUNTEER PROGRAMS

    The Committee recognizes the important activities of the 
Citizens Development Corps (CDC) and the Financial Services 
Volunteer Corps (FSVC) in assisting the growth of emerging and 
transitioning economies around the world. The CDC's and FSVC's 
thousands of volunteer American businesspeople bring the 
benefits of market economies and democratic values to 
developing countries and provide unique and continuing value to 
United States foreign aid strategies. The Committee urges USAID 
to seek ways to maximize the use of CDC and FSVC programs and 
volunteers in priority countries.

                      GLOBAL DEVELOPMENT ALLIANCE

    For potential funding from the Global Development Alliance 
or other sources, the Committee urges USAID to actively 
consider an innovative proposal from Counterpart Communities to 
strengthen existing city partnerships and potentially create 
new Counterpart Community partnerships. Counterpart Communities 
has leveraged successfully the resources made available by the 
United States Government through various donations by United 
States citizens, companies, and organizations.

                                 AFRICA

    The Committee notes with concern the reductions made in the 
budget request to a number of countries in Africa. The 
Committee has restored the non-HIV/AIDS programs within the 
Child Survival and Health Programs Fund to their fiscal year 
2004 levels, and has added $100,000,000 to the President's 
request for the Development Assistance account. The Committee 
expects USAID to restore the cuts in African country 
allocations (for countries not eligible for MCC funding) to 
their fiscal year 2004 levels, consistent with proper 
programmatic considerations. Further, the Committee is 
concerned that its requests to USAID to provide an explanation 
for its decisions to cut African country levels have gone 
unanswered, and expects to be fully consulted prior to the 
release of the section 653(a) allocations for fiscal year 2005.
    The Committee urges USAID to consider proposals to provide 
technical assistance, training, and other types of support to 
the community based ``gacaca'' courts in Rwanda. The Committee 
also urges USAID to consider a proposal from All Africa Global 
Media to conduct training and exchanges for African 
journalists.

       UNITED STATES UNIVERSITY SUPPORT FOR DEVELOPING COUNTRIES

    The Committee continues to receive numerous requests to 
fund specific activities at or through American institutions of 
higher education. The Committee strongly supports activities 
that advance international development and United States 
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 March 15, 2005, the Administrator of USAID 
shall submit a report to the Committee on the status of each 
activity identified below. Such report shall include: (1) the 
status of a funding proposal by the organization associated 
with each activity; (2) the degree to which the proposal is 
consistent with United States development assistance and 
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 proposed 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 
September 15, 2005. In addition, the Committee requests that 
USAID identify an office or organization within the agency, or 
within the Department of State if appropriate, to which 
inquiries can be directed on the status of these proposals.
    With the foregoing in mind, the Committee recommends the 
following proposals for USAID's active consideration:
          A project from the University of Arizona and Mexico's 
        Consejo Nacional de Ciencia Y Technologia (CONACyT) to 
        support a United States-Mexico binational optics 
        program with the purpose of establishing a program to 
        improve Mexico's competitiveness;
          A proposal by the University of Arkansas Medical 
        School to work in partnership with Russian institutions 
        on critical health problems in Russia;
          A proposal by California Western University School of 
        Law to help Latin American countries reform their 
        judicial systems;
          Proposals by Loma Linda University, California, to 
        expand its medical education and health care programs 
        in developing countries;
          A proposal by the University of California at Los 
        Angeles to provide distance education to support the 
        fight against HIV/AIDS in Africa and to improve the 
        quality of the African health care delivery system;
          A proposal by Barry University, Florida, to provide 
        quality education to uneducated and untrained women in 
        developing countries;
          A proposal by Florida State University to revitalize 
        and expand the Caribbean Law Institute and re-establish 
        linkages with the University of the West Indies;
          A proposal by the University of Miami, Florida, to 
        support the Cuban Transition Project at the Institute 
        for Cuban and Cuban-American Studies;
          A proposal by the University of Georgia's Center for 
        International Trade and Security to help in efforts to 
        combat proliferation of weapons of mass destruction;
          Proposals by DePaul University, Illinois, to provide 
        training for diplomats and 30 to 45 police officials, 
        prosecutors, judges, defense attorneys, prison 
        officials and members of the media from 15 different 
        Arabic nations in country specific training sessions;
          A proposal by Northwestern University, Illinois, in 
        association with partner organizations through the 
        Consortium for Development Partnerships, to respond to 
        the slow pace of economic development, democratization, 
        and conflict resolution in many African countries;
          A proposal by Kirkwood Community College, Iowa, to 
        develop graphic, interactive electronic teaching tools 
        and train educators;
          A proposal in support of the Norman E. Borlaug 
        International Science and Technology Fellows Program;
          Proposals by the University of Kentucky to develop a 
        new center for international studies and to develop 
        partnerships with three Indonesian universities;
          A proposal by the African Technology for Education 
        and Workforce Development Initiative to establish a 
        distance learning program between United States and 
        African universities;
          A proposal by Tulane University, Louisiana, and 
        African institutions to expand multidisciplinary 
        research centers in malaria-infested regions of Africa 
        to develop improved responses to the reemergence of 
        malaria;
          A proposal by Tulane University and Xavier 
        University, Louisiana, to work with the West African 
        Health Organization to prevent and treat HIV/AIDS in 
        the militaries of the Economic Community of Western 
        African States;
          A proposal by the Louisiana State University Law 
        Center to support intra-hemispheric trade through 
        partnerships with law schools in Latin America;
          A proposal by the John Joseph Moakley Center for Law, 
        Justice, and Human Rights at Boston College, 
        Massachusetts, to support programs that promote justice 
        and human rights around the world through the College's 
        undergraduate and graduate international programs;
          Proposals by the University of the Middle East to 
        facilitate construction of a fully-accredited Graduate 
        School of Education in Massachusetts;
          Proposals by Suffolk University, Massachusetts, to 
        create a sustainable partnership to provide unique 
        education opportunities for both American and African 
        students;
          A proposal by Eastern Michigan University's Center 
        for Middle East Services to develop mutual 
        understandings with the Middle East;
          A proposal by Bemidji State University, Minnesota, to 
        create a Central Asian Institute to facilitate cross-
        cultural understanding and enhance the education of 
        citizens in Central Asia;
          A proposal by New Mexico Tech in Socorro, New Mexico 
        for anti-terrorism programs;
          A proposal by New York University to support the 
        Afghanistan Digital Library;
          A proposal by the University of Nevada Las Vegas to 
        support the City of Asylum Network that provides 
        support for writers who are silenced in their home 
        countries;
          A proposal by Drexel University, Pennsylvania, in 
        partnership with the Caribbean American Mission for 
        Education Research and Action to improve basic 
        education delivery services through the Caribbean 
        Basin;
          A proposal by Chestnut Hill College, Pennsylvania, 
        for a distance learning and exchange program in 
        Ukraine;
          A proposal by Salve Regina University, Rhode Island, 
        to sustain and develop a series of reconciliation 
        initiatives for young people in Northern Ireland;
          A proposal by Austin Peay State University, 
        Tennessee, to enhance the international curriculum to 
        meet the needs of military personnel at Fort Campbell, 
        Kentucky;
          A proposal by University of Texas at Austin, Texas, 
        to work with the Turkish National Science Foundation 
        and the Middle East Technical University of Ankara, 
        Turkey, to conduct earthquake research, to evaluate 
        existing structures in Turkey, define their seismic 
        vulnerabilities and develop effective defensive 
        techniques and measures;
          A proposal by Texas A&M University and other Alabama 
        and Texas institutions of higher learning to expand 
        research in the United States, Ghana and other 
        cooperating countries to further refine the technology 
        for remediating the effects of mycotoxins in food and 
        feed;
          Proposals by Baylor University, Texas, to support 
        international pediatric healthcare centers to enhance 
        the treatment and care of children with HIV/AIDS;
          A proposal by George Mason University, Virginia, to 
        support continued operations of the Center for World 
        Religions, Diplomacy and Conflict Resolution to support 
        an initiative to reduce violence in the name of 
        religion;
          A proposal by Virginia Commonwealth University to 
        conduct a baseline database on the health, economic and 
        social parameters of AIDS patients in South Africa;
          A proposal by the University of Richmond, Virginia, 
        to support the education of future judges in emerging 
        democracies;
          A proposal by Marquette University College of 
        Nursing, Wisconsin, to participate in partnerships with 
        community-based HIV ``Centers of Excellence'' in Kenya;
          A proposal by the Caribbean American Mission for 
        Education Research and Action to elevate the condition 
        of the people of the Caribbean using United States 
        university expertise in educational methodologies and 
        delivery systems;
          A proposal by the Mrs. Helena Kaushik Women's 
        College, India, to increase opportunities for women to 
        receive undergraduate and graduate degrees;
          A proposal by Alliant International University and 
        United States International University--Kenya to 
        transfer technology skills to Kenyan businesses and to 
        support USAID's goal of ``Building Human Capacity 
        through Education and Training'';
          A proposal by Georgetown University Hospital to 
        develop partnerships with healthcare institutions in 
        South Africa and other regions afflicted by HIV/AIDS, 
        to provide psychosocial support and other services to 
        people affected by the disease;
          A proposal by the Asian University for Women, 
        Bangladesh, to educate disadvantaged women from diverse 
        backgrounds around Asia in a non-sectarian environment; 
        and
          A proposal on behalf of universities in Nigeria to 
        establish cyber centers and technical training 
        facilities.

              International Disaster and Famine Assistance





Fiscal year 2004 level................................      $253,993,000
Emergency supplemental funding........................       220,000,000
Fiscal year 2005 request..............................       385,500,000
Committee recommendation..............................       355,500,000


    The Committee recommends $355,500,000 for the International 
Disaster Assistance and Famine Assistance account.
    The Committee includes $20,000,000 of funding for early 
intervention to prevent or mitigate the effects of famine. The 
Committee does not fund the request for the United States 
Emergency Fund for Complex International Crises.
    The Committee urges the State Department and USAID to 
consider the use of microprocessor-controlled mobile factories 
with the capability to construct buildings and shelter as part 
of reconstruction efforts in Afghanistan and Iraq, and for 
relief and security requirements in Jordan and Morocco. This 
equipment has multiple potential applications for these and 
other programs, such as infrastructure development, 
reconstruction, national disaster response, and humanitarian 
relief.
    The Committee notes that, pursuant to section 594(c) of the 
fiscal year 2004 Act, the Department of State has submitted a 
report on United States Government efforts to protect women and 
children affected by humanitarian emergencies. The report 
identifies the Office of Foreign Disaster Assistance, the 
Office of Transition Initiatives, and the Department of State's 
Bureau of Population, Refugees, and Migration (PRM) as three of 
the primary offices responsible for such programs, and makes a 
number of recommendations, including: continue to focus and 
target assistance for women and children in humanitarian 
emergencies; and improve United States Government capacity to 
make long-term commitments to protection-oriented reforms. In 
order to achieve these goals, the Committee recommends that 
$45,000,000 be provided from State Department and USAID 
resources in this Act for such activities.
    The Committee recognizes the collaboration between USAID 
and the United States Geological Survey (USGS)/EROS Data Center 
(EDC) Famine Early Warning System Network (FEWS NET) and other 
food security programs in sub-Saharan Africa. The Committee 
supports the goals of these famine relief initiatives and the 
cooperative partnership between USAID and USGS/EDC. The 
Committee also recognizes the need to have continuous access to 
valuable land remote sensing data and the critical role the 
USGS/EDC plays in collecting, managing, and archiving this data 
used to monitor vegetation, rainfall, and agricultural 
conditions affecting global food security.

                                 SUDAN

    The Committee is extremely concerned about the dire 
humanitarian situation in Sudan. In the Darfur province of 
western Sudan, USAID estimates 300,000 people may die by the 
end of the year unless rapid action is taken. In addition to 
the unfolding tragedy in Darfur, there are significant 
humanitarian requirements in southern Sudan.
    The Committee recommendation includes $311,000,000 for 
Sudan, of which $140,000,000 has been requested from this 
account. This funding is in addition to $95,000,000 pending in 
the Act making fiscal year 2005 appropriations for the 
Department of Defense.

                            SUDAN ALLOCATION




Child Survival and Health.............................       $16,000,000
Development Assistance................................        70,000,000
Economic Support Funds................................        20,000,000
International Disaster and Famine Assistance..........       140,000,000
Non-Proliferation, Anti-terrorism, Demining and                2,000,000
 Related Programs.....................................
Migration and Refugee Assistance......................        53,000,000
Transition Initiatives................................        10,000,000
                                                       -----------------
      Total from this Act.............................       311,000,000


    The Committee is deeply concerned about the actions of the 
northern Sudanese government in Darfur. That government's 
direct and indirect support for the ``Janjaweed'' militia and 
repeated delay of international assistance to the millions of 
displaced persons in the region must be immediately stopped. In 
section 531, the Committee prohibits funding from this Act for 
that government or for initiatives to alleviate Khartoum's 
$19,000,000,000 debt burden unless the Secretary of State makes 
the certification outlined in subsection (c).
    Subsection (c) of section 531 describes three steps that 
the northern government must take immediately if the deaths in 
Darfur are to be lessened, including ending its support for the 
Janjaweed and allowing humanitarian assistance unimpeded access 
to the region. Once the Secretary of State has certified to the 
Committee that these steps are being taken, the restrictions 
and instructions provided in subsection (b) will cease to be in 
effect. Humanitarian assistance, and assistance provided to the 
Darfur region and to the area outside of the control of the 
north, are specifically not restricted by section 531.
    Funding for Sudan is also explicitly restricted elsewhere 
in this Act, including under headings ``Debt Restructuring'' 
and ``Foreign Military Financing Program''.

                         Transition Initiatives





Fiscal year 2004 level................................       $54,676,000
Fiscal year 2005 request..............................        62,800,000
Committee recommendation..............................        47,500,000


    The Committee recommends $47,500,000 for this account. This 
is $7,176,000 below the 2004 level and $15,300,000 below the 
request. The Committee does not preclude USAID's Office of 
Transition Initiatives (OTI) from using resources transferred 
from other development accounts in this Act. Also, the 
Committee requests that USAID report on a semi-annual basis the 
expenditure and specific use of funds by OTI.

                      Development Credit Authority


                     (INCLUDING TRANSFER OF FUNDS)

                            PROGRAM ACCOUNT




Fiscal year 2004 level................................
    (by transfer).....................................     ($21,000,000)
Fiscal year 2005 request..............................
    (by transfer).....................................      (21,000,000)
Committee recommendation..............................
    (by transfer).....................................      (21,000,000)


                        ADMINISTRATIVE EXPENSES




Fiscal year 2004 level................................        $7,953,000
Fiscal year 2005 request..............................         8,000,000
Committee recommendation..............................         8,000,000


    The Committee recommends a ceiling of $21,000,000 on the 
amount that may be transferred from bilateral economic 
assistance accounts for the subsidy cost of loan guarantees 
under the Development Credit Authority program.
    The Committee recommends $8,000,000 for administrative 
expenses, the same as the requested level.

     Payment to the Foreign Service Retirement and Disability Fund





Fiscal year 2004 level................................       $43,859,000
Fiscal year 2005 request..............................        42,500,000
Committee recommendation..............................        42,500,000


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

   Operating Expenses of the United States Agency for International 
                              Development





Fiscal year 2004 level................................      $600,536,000
Emergency supplemental funding........................        40,000,000
Fiscal year 2005 request..............................       623,400,000
Committee recommendation..............................       618,000,000


    The Committee has recommended funding for United States 
Agency for International Development operating expenses at a 
level of $618,000,000, which is $17,464,000 above the fiscal 
year 2004 level. The Committee recommends bill language 
providing that $25,000,000 of the fiscal year 2005 
appropriation remain available until September 30, 2006. The 
Committee also has recommended bill language clarifying that 
the Secretary of State may make transfers between accounts for 
USAID administrative expenses pursuant to sections 109 and 610 
of the Foreign Service Assistance Act of 1961. The Committee 
has included a provision requiring USAID to notify the 
Committee in advance of opening any new mission overseas and of 
any capital construction of missions or purchase or long-term 
lease of offices. The reporting requirement also applies to 
funds appropriated under the heading ``Capital Investment 
Fund''.

                            HUMAN RESOURCES

    The Committee acknowledges the work USAID is doing to 
``right size'' its work force and appreciates the hard work 
evident in the Workforce Planning Report provided on June 15, 
2004. The Committee remains concerned that USAID and the 
Department of State are not moving quickly enough to address 
future human resource requirements. These requirements will be 
all the more challenging because of the expected increase in 
USAID staff retirements. By 2007, almost 60 percent of the 
United States direct hire foreign service personnel will be 
eligible for retirement as will 30 percent of USAID's civil 
service personnel.
    The Committee remains concerned that staffing in USAID 
missions abroad does not reflect current or future workload 
realities. The Workforce Planning Report only partially 
addresses these problems. For example, some country assistance 
levels declined by over 40 percent in past years, yet there was 
no significant related decrease in mission personnel. The 
Committee therefore requests a second report, to be due on 
October 15, 2004, that builds upon the previous Workforce 
Planning Report. USAID should consult with the Committee well 
in advance on methodology, relevant analysis and other content 
to be included in the report.
    The Committee supports USAID's comprehensive workforce 
analysis and planning review. It looks forward to reviewing the 
planned Washington to Overseas Alignment Study. The Committee 
urges USAID to integrate the work force metrics into its annual 
budget process so that workforce and workload issues--both in 
missions and in Washington--can be effectively addressed. USAID 
should routinely evaluate the alignment of program resources 
and staff in each operating unit's budget justification.
    The Committee notes the Congress has supported 
Administration proposals with respect to readiness initiatives 
at the Department of State. It would welcome similar proposals 
by the Administration on behalf of USAID. The Committee also 
welcomes constructive proposals to modernize USAID's personnel 
systems or improve budget transparency for administrative 
expenses.

    CONCERNS ABOUT CONTRACTING AMONG PVOS, COOPERATIVES, AND SMALL, 
                    DISADVANTAGED AND MINORITY FIRMS

    As USAID's personnel shortfall and major reconstruction 
projects in Afghanistan and Iraq prompt USAID to increasingly 
rely on large contractors to administer smaller grants and 
cooperative agreements, the Committee is aware of the difficult 
adjustment facing many of USAID's long-serving and effective 
implementing organizations, especially private voluntary 
organizations (PVOs), microenterprise networks, cooperatives, 
and small, disadvantaged and minority firms. While the 
Committee remains supportive of the prudent use of indefinite 
quantity contracts and greater competition and accountability, 
it seeks to help resolve the perceived crisis among USAID's 
existing PVO, cooperative, and small, disadvantaged and 
minority implementing agents.
    An important component of USAID's ongoing efforts to 
improve operations within its Office of Procurement is outreach 
to small, disadvantaged and minority contractors and grantees. 
The Committee is aware of initiatives to train minority firms 
in leading United States export cities to better compete for 
USAID awards, and requests that sufficient resources be 
allocated over the next two years to train small, minority, and 
disadvantaged firms in leading export cities for such purposes. 
The Committee further directs USAID to submit to the Committee 
a report that provides an accounting of the resources used to 
train minority firms, as well as the total number of small 
minority firms that receive training. The report should also 
include the number of minority firms that are awarded contracts 
after receiving training.
    The Committee recommends that those entities competing for 
the training contract have prior experience in working with 
small, minority and disadvantaged firms in increasing their 
ability in doing business in the international arena.
    The Committee is also aware that USAID maintains a national 
database of qualified small, disadvantaged, and minority firms. 
This database should be expanded to include firms who benefit 
from the outreach initiative. In addition, information from the 
database should be disseminated on a regular basis to all USAID 
overseas missions, relevant Washington, DC staff, and USAID 
prime contractors.

                    COMPETITIVE CONTRACTS AND AWARDS

    The Committee firmly supports full, fair and open 
competition as a means of lowering costs and getting better 
product. The Committee recognizes that waivers of federal 
acquisition rules are sometimes necessary, but it believes such 
waivers should be rare and issued in a fully transparent 
manner. The Administrator of USAID is requested to provide the 
Committee an annual report not later than four months after the 
end of the fiscal year, on the extent and detail during the 
preceding fiscal year of USAID's sole-source and limited-
competition awards for contracts, cooperative agreements, and 
grants in excess of $100,000. USAID should consult with the 
Committee before beginning to draft the report.

                        Capital Investment Fund





Fiscal year 2004 level................................       $81,715,000
Emergency supplemental funding........................        16,600,000
Fiscal year 2005 request..............................        64,800,000
Committee recommendation..............................        64,800,000


    The Committee is recommending $64,800,000 for the Capital 
Investment Fund for fiscal year 2005, the same as the 
President's request. In total, the Committee recommendation 
includes $28,700,000 for USAID participation in the Capital 
Cost-Sharing Program, under which all agencies with overseas 
staff operating under Chief of Mission authority will 
contribute toward the costs of constructing secure embassy 
compounds. The Committee supports the concept of Capital Cost 
Sharing but wants to ensure that all agencies are treated 
equitably. It has therefore included language in its bill to 
ensure equitable treatment. Funds would remain available until 
expended and are in addition to funds otherwise available for 
such purposes.

                      USAID BUSINESS MODEL REVIEW

    The Committee commends the Administrator and USAID for 
initiating and completing a Business Model Review (BMR). The 
Committee believes it vitally important that USAID continue to 
evaluate its operational processes in a spirit of continuous 
improvement. Effective foreign assistance strategies should 
reflect both the diverse challenges and the necessary aid 
delivery structures necessary to achieve the intended 
development outcome. The Business Model Review is an effective 
tool that helped shape management decisions. The Committee 
looks forward to frequent updates on the implementation of 
decision memos approved by the Administrator.
    With respect to strategic management, the Committee 
requests that USAID submit the Interim Guidance immediately 
after approval and provide a description of the process and 
timeline with milestones that USAID will use to restructure 
USAID's strategic planning process with the Strategic 
Management Framework. The Committee notes that eighty-five 
percent of people polled for purposes of the study believe that 
USAID's current planning process needs to be streamlined.
    With respect to management oversight, the Committee 
requests a consultation on the methodology of coordinated 
overseas Mission Program Management Reviews. Accompanying this 
consultation, the Committee expects a written summary of the 
methodology, the target list of priority operational units for 
review in the upcoming fiscal year, as well a timeline for the 
completion of reviews, the reporting of results, and the 
institutionalizing of agency wide practice in the years to 
come. The Committee requests that USAID provide the 
consultation prior to the start of Pillar Bureau reviews.
    The Committee encourages the Administrator to continue to 
undertake such fundamental business management reviews of USAID 
operations and looks forward to further in depth consultation.

                          FINANCIAL MANAGEMENT

    In October, 2003 the Inspector General issued clean, 
unqualified opinions on all five of USAID's fiscal year 2003 
financial statements. The Committee recognizes this significant 
progress achieved through the hard work of both USAID and 
USAID's Inspector General. In fiscal year 2001, three of 
USAID's financial statements were given qualified approval, and 
two were given a disclaimer; not one received a passing grade.
    The Committee remains intensely interested in the roll-out 
of USAID's new financial management system known as Phoenix. 
The Committee appreciates USAID's commitment to complete 
deployment of Phoenix to all of the field missions by the end 
of fiscal year 2005. The Committee expects to be kept informed 
on a routine basis of major milestones accomplished and 
encourages adequate planning in order to avoid any delay in 
implementation. As the new system is implemented, the Committee 
wishes to emphasize the importance of generating the field 
commitment to using the system.
    Although clean, unqualified opinions on USAID's annual 
financial statements are important, the Committee stresses the 
paramount importance of USAID managers having timely, reliable 
and complete financial and performance data on foreign 
assistance programs on a consistent basis. They will not have 
this data as long as there is no world wide, integrated 
financial system.
    Consistent with the President's request, the Committee 
funds $2,700,000 for the information technology enhancements to 
the Phoenix system in Washington as well as the $10,600,000 for 
Mission Financial System improvements.

                    PROCUREMENT IMPROVEMENT EFFORTS

    Consistent with the President's request, the Committee 
provides $9,900,000 as requested in the Capital Investment Fund 
to implement the Procurement Systems Improvement Project 
(PSIP), an overseas deployment of a web based procurement 
system. In the report accompanying the Foreign Operations 
Appropriations Act, 2003, the Committee urged USAID to develop 
a worldwide procurement tracking system that would allow the 
agency to evaluate regularly its procurement process and 
ultimately allow data to be integrated into its financial 
management system. By the fourth quarter of fiscal year 2005 
(the target completion date as identified by USAID), the 
Committee believes it essential for managers to possess an 
integrated, agency wide, real time system for the acquisition 
and award process--inclusive of grants, cooperative agreements, 
and contracts. The Committee recognizes USAID-identified PSIP 
objectives but also encourages USAID to use the system as a 
means to improve the competitiveness of procurement as well as 
to measure the continuous opportunity of new entrants as third 
party implementers.
    The Committee recognizes and supports USAID's collaborative 
process with the Department of State. The Committee expects to 
be informed of any delays resulting for any reason, including 
risk or vulnerabilities associated with software development, 
technology infrastructure and inter-agency relationships. The 
Committee appreciates the report on the PSIP and requests a 
followup report by October 8, 2004. This report should include 
a more detailed timeline of project milestones in fiscal year 
2005 as well as relevant updates on project critical paths and 
risks.
    The Committee also requests that USAID provide a detailed, 
comprehensive, and relevant spend analysis of agency 
procurement by November 5, 2004 and a consultation on 
methodology prior to the start of the analysis. The analysis 
should include differences in procurement across pillar and 
regional bureaus, by account, sector, or strategic objectives 
and, where appropriate, procurement by commodity type and 
purpose, vehicle, and vendor.
    To respond to negative perceptions of procurement 
practices, the Committee requests a report on metrics USAID 
uses to evaluate the competitiveness, efficiency, long term 
structural openness to new entrants, and procurement vehicle 
consistency with strategic objective. The Committee requests 
this report by October 8, 2004. The report should include a 
description of the various metrics and illustrate their 
application in a detailed review of at least two operating 
units' procurement for a recent fiscal year (preferably one 
field mission and one regional or pillar bureau).
    All funds made available under the Capital Investment Fund, 
including the obligation of offsetting collections, and the 
capital appropriation in the Economic Support Fund, are subject 
to the regular notification procedures of the Committees on 
Appropriations. The Committee also has included bill language 
under Operating Expenses of the United States Agency for 
International Development that requires notification before 
USAID commits to new overseas missions that will require 
additional capital investments.

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





Fiscal year 2004 level................................       $34,794,000
Fiscal year 2005 request..............................        35,000,000
Committee recommendation..............................        35,000,000


    The Committee has recommended $35,000,000 for the Office of 
the Inspector General of USAID for fiscal year 2005, which is 
the same as the President's request. The Committee again 
commends the Inspector General for its cooperation with the 
Committee in its oversight of USAID management. Not later than 
120 days after the date of the enactment of this Act, the 
Inspector General of USAID is requested to prepare and submit 
to the Committee a report that describes and evaluates the 
extent to which the task ordering process carried out by 
mission directors of the Agency affects the Agency's ability to 
meet the goals established by the Small Business Administration 
relating to contracting with small businesses.

                  Other Bilateral Economic Assistance


                         ECONOMIC SUPPORT FUND




Fiscal year 2004 level................................    $2,119,919,000
Emergency supplemental funding........................       872,000,000
Fiscal year 2005 request..............................     2,511,500,000
Committee recommendation..............................     2,450,000,000


    The Committee recommends a total of $2,450,000,000 for the 
Economic Support Fund (ESF), an amount that is $61,500,000 
below the request and $330,081,000 above the amount enacted for 
fiscal year 2004, excluding emergency supplemental 
appropriations. The increase above the fiscal year 2004 level 
is primarily due to the annualization of supplemental funding 
for assistance for two key allies in the war on terrorism, 
Afghanistan and Pakistan. Funding for Afghanistan is 
recommended at the President's request of $225,000,000, which 
is $150,442,000 above the funding level for 2004, excluding 
supplemental appropriations of $672,000,000. Funding for 
Pakistan is recommended at the President's request of 
$300,000,000, all of which is above the funding level for 2004, 
excluding supplemental appropriations of $200,000,000. The net 
increase of $450,442,000 for these two countries is offset by 
reductions in other areas.
    The Committee recommendation assumes a reduction of 
$153,776,000 in economic support for the Camp David countries. 
The recommended amount in the Economic Support Fund for Israel 
is $360,000,000 and $535,000,000 is recommended for Egypt. The 
recommendation includes $250,000,000 for Jordan. These amounts 
are the same as the President's fiscal year 2005 request. In 
addition, the recommendation reflects a reduction of $8,500,000 
associated with the decision to retain a separate 
appropriations account for the International Fund for Ireland.
    The Committee is also recommending the retention of 
language from the fiscal year 2004 appropriations act 
specifying that policy and allocation decisions for funds 
appropriated under this heading in this Act and in prior acts 
shall be made by the Secretary of State or the Deputy Secretary 
of State and shall not be delegated. The Committee is concerned 
the programs and activities funded through this account 
accurately reflect both the priorities of the Secretary of 
State and the budget justification material provided to the 
Committees on Appropriations, as modified by the Congress. The 
managers reiterate the importance of Congressional intent in 
the programming of funds appropriated to the Economic Support 
Fund and anticipate the continuation of a cooperative approach 
during fiscal year 2005 on funding allocations and programming 
decisions.

                                 ISRAEL

    The Committee is continuing the initiative begun six years 
ago for a phased reduction in economic assistance for Israel 
that will result in the eventual elimination of Economic 
Support Fund assistance. This proposal was originally made by 
the Government of Israel in response to new economic realities 
in the Middle East. The Committee is also convinced that the 
emerging security threats in the Middle East are significant 
and warrant increasing military assistance to Israel by 
$72,744,000 in fiscal year 2005.
    The Committee therefore recommends not less than 
$360,000,000 in economic support shall be provided for Israel, 
which is $117,168,000 less than the fiscal year 2004 level and 
the same as the President's budget request. The Committee also 
requires in bill language that these funds be provided to 
Israel as a cash grant and that funds be disbursed within 30 
days of enactment of the Foreign Operations, Export Financing 
and Related Programs Act or by October 31, 2004, whichever 
occurs later.

                          ISRAEL LAND PROJECT

    The Committee recognizes the contributions of the African 
Hebrew Israelites to Israel, and specifically to the Dimona 
area. The Committee understands that the Government of Israel 
has agreed to extend permanent residence status to the 
community, which will make it eligible for government 
assistance with housing programs. The community, working with 
the Government of Israel, has identified a site for the 
construction of a new housing and community complex, to which 
the Government of Israel has pledged 95 million shekels in 
mortgage assistance. The Committee urges USAID to explore ways 
to help the community complete this project.

                                 EGYPT

    As part of the Committee's ongoing review of Middle East 
aid levels, and as a result of budget constraints affecting the 
international affairs budget, the Committee is recommending 
continuation of a policy of reducing economic support for Egypt 
in a manner which does not inadvertently undermine the guiding 
principles of the Camp David Accords and efforts to enhance 
peace in the Middle East.
    The Committee therefore includes not less than $535,000,000 
in economic support for Egypt on a grant basis, which is 
$36,608,000 less than the fiscal year 2004 level and the same 
as the President's budget request. A cash transfer may be 
provided with the understanding that Egypt will continue to 
implement significant economic reforms.
    The Committee continues to be concerned about persistent 
poverty in Upper Egypt. The Committee appreciates special 
efforts that USAID has made to focus on community and economic 
development as well as education and women's programs in this 
special region. The Committee, however, believes that much more 
needs to be done and urges the Department of State and USAID to 
place renewed emphasis and allocation of assistance in the 
Governorates of Minya, Assiut, and Sohag. The Committee is 
disappointed that USAID did not respond promptly to the request 
for a report on these activities in fiscal year 2004. Within 60 
days of the date of enactment of this Act, the Committee 
directs USAID to report specifically to the Committee on the 
actions it has taken, and intends to take, to respond to the 
needs in this region. The Committee intends that assistance 
should be provided to assist all ethnic and religious groups in 
the region, but that special attention should be paid to those 
ethnic and religious groups that may be economically 
disadvantaged. The Committee further directs USAID to consult 
with the Committee as it prepares its funding allocation for 
activities in this region using funds appropriated by this Act.

                           CAMP DAVID ACCORDS

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

                          NON-MILITARY EXPORTS

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

                       ECONOMIC BOYCOTT OF ISRAEL

    The Committee has once again included language addressing 
the Arab League boycott of Israel under section 535 of this 
Act. The Committee strongly opposes this boycott and believes 
that the Department of State must take strong action to combat 
this practice. This recommended bill language includes 
modifications first made three years ago to urge that Arab 
League members normalize relations with Israel.

                                 JORDAN

    The Committee recommendation includes $250,000,000 for 
Jordan. The Committee expresses strong appreciation for that 
nation's strong support for the United States and our military 
forces during the recent conflict in Iraq. Jordan has played a 
leadership role in facilitating efforts to bring peace between 
Israelis and Palestinians. The Committee notes that this 
assistance will help Jordan deal with economic impacts from 
increased oil prices, and it will help the Kingdom continue to 
modernize information technology investments and education.

                       WEST BANK AND GAZA PROGRAM

    The Committee recommendation for the West Bank and Gaza 
program continues language that prohibits funds in this Act 
from being obligated or expended directly to the Palestinian 
Authority (section 550).
    In addition, in order to maintain proper oversight of 
grants and contracts issued under the West Bank and Gaza 
program, the Committee is recommending the continuation of bill 
language requiring annual audits of all contractors and 
grantees, and significant subcontractors and subgrantees. In 
order to ensure that the taxpayer funds are not used 
inappropriately, the Committee recommendation strengthens the 
vetting requirements of section 559 of this Act. Prior to the 
obligation of funds for the West Bank and Gaza program, the 
Secretary of State is required to take all appropriate steps to 
ensure that such assistance is not provided through any 
individual, private or government entity, or educational 
institution, that the Secretary knows or has reason to believe 
advocates, plans, sponsors, engages in, of has engaged in, 
terrorist activity. New language also requires the Secretary of 
State to terminate any assistance to any individual, entity, or 
educational institution found to be involved in or advocating 
terrorist activity. Finally, the Committee recommends the 
continuation of bill language providing up to $1,000,000 for 
the Inspector General of the United States Agency for 
International Development for audits, inspections, and other 
activities in furtherance of this provision.

                            LEBANON PROGRAM

    The Committee has provided $35,000,000 for Lebanon from 
Economic Support Fund resources, and expects that not less than 
$4,000,000 should be used for scholarships and other direct 
support of the American educational institutions in Lebanon. 
Providing an American education to the young people of Lebanon 
and the region makes a unique contribution to the long-term 
development of political and economic stability in that 
country. Broadening understanding of American values in the 
Middle East is particularly important to United States efforts 
to counter violence and terrorism.
    The Committee recognizes that Lebanon can never achieve 
full independence until all foreign security and military 
forces are withdrawn, and control is reasserted by the national 
government throughout all of Lebanon, including the south. As 
it did last year, the Committee calls upon Lebanon and Syria to 
adopt a timetable for the complete withdrawal of all Syrian 
forces from Lebanon.

                     MIDDLE EAST REGIONAL PROGRAMS

    The need for fresh water is a reality for all parties in 
the Middle East. Fresh water is essential for economic 
development, agriculture, health, and improving the quality of 
life for everyone in the region. Therefore the Committee 
strongly supports the continued efforts of the International 
Arid Lands Consortium in addressing the critical issues of 
water, energy, and agriculture and land use in the Middle East 
and Central Asia, and urges USAID to make available $2,500,000 
to the Consortium for this work. These funds are to be 
allocated from bilateral, centrally managed or regional 
programs either in this account or in other accounts funded by 
this Act.
    The Committee is aware of proposals to use state-of-the-art 
microprocessor-controlled mobile factories that construct metal 
buildings on site for infrastructure development in Iraq, 
Afghanistan, Jordan, and Morocco, using funds appropriated 
under this heading and under the heading ``Foreign Military 
Financing Program''. Such buildings could be used for a variety 
of purposes in support of economic development and military 
assistance programs. The Committee urges the Departments of 
State and Defense to review proposals for the integration of 
such buildings into country programs funded in this Act.

                        RELIGIOUS FREEDOM--EGYPT

    The Department of State 2003 International Religious 
Freedom Report notes that ``. . .  there was some improvement 
in the Government's respect for religious freedom during the 
period covered by this report, such as greater recognition and 
tolerance of Coptic Christians; however, the Government 
continued to fail to bring to justice those responsible for 
killing 21 Christians at Al-Kush, and converts from Islam face 
periodic detention and discrimination.'' The Committee remains 
concerned about the problems faced by Egypt's Coptic Christian 
community and believes the Egyptian Government needs to do 
everything possible to provide full opportunity for Coptic 
Christians in employment and educational opportunities. The 
Committee expects the Department of State to make every effort 
to reinforce the importance of actively enforcing the religious 
freedoms that are, in fact, provided for in the Egyptian 
Constitution.

           MIDDLE EAST PARTNERSHIP INITIATIVE/MUSLIM OUTREACH

    The recommendation includes $90,000,000 for the Middle East 
Partnership Initiative (MEPI) and, to the extent funds are 
available, for the activities of the new Muslim Outreach 
initiative that are not associated with public diplomacy. The 
MEPI supports an array of economic and social reform 
initiatives in the Middle East and non-Arab Islamic countries. 
In addition, in section 526 language is included similar to 
that included in the 2004 appropriations act that authorizes up 
to $1,500,000 for making grants to educational, humanitarian, 
and nongovernmental organizations and individuals inside Iran 
and Syria to support the advancement of democracy and human 
rights in Iran and Syria. Such grants may be made through the 
National Endowment for Democracy.
    The Committee is aware of requests to fund scholarships at 
American educational institutions in the Middle East through 
the MEPI program. In order to determine the most effective and 
efficient way to provide for such a program, if merited, the 
Committee directs the Department of State to review this 
proposal and to recommend, as part of the President's fiscal 
year 2006 budget request, how such a program could be most 
effectively funded and managed by the United States Government. 
Funding constraints have prevented the Committee from 
recommending the budget request of $150,000,000 for MEPI, and 
without additional funding above the fiscal year 2004 level, 
the Committee is not in a position to recommend the initiation 
of a new scholarship program at this time. In addition, the 
Committee does not have sufficient information to determine if 
such a program should appropriately be funded through MEPI.

                                  IRAQ

    United States' assistance to Iraq is well over 
$21,000,000,000 and is the single largest assistance program in 
the world. The effective implementation of this program is 
critical to American efforts to bring peace to the Middle East 
and to the successful withdrawal of American troops from Iraq. 
With the dissolution of the Coalition Provisional Authority 
(CPA) on June 28, 2004, the Secretary of State has 
responsibility for the supervision and direction of all United 
States assistance for Iraq. Given rapidly evolving events in 
Iraq, the Committee believes the Secretary of State will 
require flexibility in the allocation of previously 
appropriated funds. The Committee urges the Secretary of State 
to provide the Committees on Appropriation with a revised 
financial plan for American assistance to Iraq as a matter of 
urgency so the Committee can consider how best to provide that 
flexibility while ensuring effective oversight of the 
assistance.
    The Committee strongly supports the Administration's 
multilateral effort to forgive a significant portion of Iraq's 
official debt and has included a general provision (section 
569) to enable the debt reduction. As international 
negotiations to forgive Iraq's debt move forward and as the 
Administration develops more current estimates of the budget 
cost of that forgiveness, the provision requires both 
consultation and notification.
    For purposes of section 402(a)(2) of S. Con. Res. 95 (108th 
Congress), as made applicable to the House of Representatives 
by H. Res. 649 (108th Congress), funds made available pursuant 
to the authorities of section 569 (``Debt Restructuring 
Authority'') are provided in response to a situation which 
poses a direct threat to life and property, is sudden, is an 
urgent and compelling need, is unpredictable, and is not 
permanent in nature. The Committee notes that this Act contains 
no new budget authority for this purpose. Funds for the costs 
of debt restructuring for Iraq are to be made available from 
the Iraq Relief and Reconstruction Fund contained in Public Law 
108-106, which were designated as an emergency under the terms 
of that Act. While the authority provided in section 569 is 
consistent with the purposes for which funds were provided for 
Iraq reconstruction in Public Law 108-106, budget scorekeeping 
conventions require the Committee to recommend language 
designating this authority as an emergency requirement as well.
    The Coalition Provisional Authority Inspector General was 
appointed on January 20, 2004. For the last several months, his 
teams of auditors and investigators have been at work. As the 
Secretary of State will have responsibility for supervision of 
United States assistance to Iraq, it is appropriate for the CPA 
Inspector General to now report to the Secretary of State. To 
avoid any disruption in this important investigative and 
oversight work, the Committee directs the continued existence 
of the Inspector General's office for Iraq reconstruction 
programs, and has included language in section 573 to ensure 
continued operations and funding.
    As required by section 2207 of Public Law 108-106, the 
Office of Management and Budget submitted reports to Congress 
on January 5, 2004 and April 5, 2004 that laid out in detail 
the financial plan for this assistance. With the transition of 
authority for United States assistance from CPA to the 
Secretary of State, the Committee believes it appropriate the 
Secretary of State be given responsibility for preparing the 
section 2207 reports that will come due in the future and in 
section 574 has modified the reporting requirements to reflect 
this policy.

                              AFGHANISTAN

    The Committee continues its strong support for the 
reconstruction of Afghanistan by providing a total of 
$977,000,000 in this Act, including $225,000,000 in this 
account, for assistance for that country. As part of this 
funding, the Committee urges funding of up to $3,000,000 to 
refurbish the existing Wazir Akbar Kahn Hospital with its 
American partner and to initiate the start-up program for 
managing and providing health care delivery in Kabul. The 
Committee requests that the Department of State report on its 
progress in addressing this matter no later than March 1, 2005.
    In addition, the Committee commends a proposal by World 
Compassion to undertake critical humanitarian aid in 
Afghanistan, and requests that the State Department review a 
proposal from this organization.
    The Committee recommendation includes $60,000,000 in fiscal 
year 2005 funds to support programs for Afghan women and girls.
    Supported by the efforts of the Ministry of Women's 
Affairs, Afghan women are beginning to redefine their role and 
reclaim their place in public society. The economic empowerment 
of Afghan women is critical to improving the economic life of 
Afghanistan and is important to access to education for 
children, better family health care, reductions in human 
trafficking and greater awareness of rights. The carpet 
industry presents vulnerable Afghan women with an opportuniy to 
build sustainable small businesses that can enjoy long-term 
access to United States markets. To this end, the Committee 
supports the Arzu initiative to support the production and sale 
of handmade carpets made under fair labor conditions by women 
weavers in Afghanistan.

                                PAKISTAN

    Of the amounts provided for Pakistan, the Committee has 
recommended bill language that allows $200,000,000 to be used 
for debt relief, pursuant to the President's budget request.

                           IRISH VISA PROGRAM

    The Committee directs that $3,500,000 be provided for the 
Walsh Visa Program for fiscal year 2005, as requested in the 
President's budget. This program, authorized since 1998, 
assists young people who are residents of Northern Ireland and 
the border counties of Ireland with developing job skills and 
conflict resolution abilities. Eligible youth receive non-
immigrant visas that enable them to work for up to three years 
in the United States.

                               EAST TIMOR

    The Committee recommends $22,000,000 for programs in East 
Timor to support income producing projects and other 
reconstruction activities.

                                 TIBET

    In section 526, the Committee has recommended not less than 
$4,000,000 in assistance for programs that 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 
and recommends that $2,000,000 of these funds should be 
provided to the Bridge Fund.
    Also in section 526, the Committee recommends that $250,000 
be made available through a nongovernmental organization, such 
as the National Endowment for Democracy, for the purpose of 
providing training and education of Tibetans in democracy 
activities, and monitoring the human rights situation in Tibet. 
The Committee supports the use of a greater portion of these 
funds for activities that have a primary impact inside Tibet, 
to the extent practicable. The Committee encourages the Bureau 
for Democracy, Human Rights and Labor to work closely with the 
Office of the Special Coordinator on Tibetan Issues in carrying 
out these programs.
    At the same time, the Committee encourages organizations 
involved in China rule of law programs to seek out 
opportunities to conduct programs that can improve the human 
rights situation and the administration of justice in Tibetan 
areas, including Tibetan areas outside the Tibetan Autonomous 
Region (TAR).

                                CAMBODIA

    The Committee is aware of the need to assist Cambodia in 
the preservation of antiquities and historical sites, 
particularly at Angkor Wat. The Committee recommends review and 
support of a proposal to assist in the preservation of an 
important building site at Siem Reap.

                                 CYPRUS

    The Committee recommends $13,500,000, the same as the 
budget request, for educational and other bicommunal projects 
in Cyprus, and recommends language similar to that included in 
the fiscal year 2004 Act. These funds provide a basis for 
mutual cooperation and preparation for the two communities of 
Cyprus to live together harmoniously by increasing inter-
communal contacts. These funds provide funding for Fulbright 
scholarships, the Bicommunal Support Program, the United 
Nations Office for Project Service, and other related 
activities.

                                  CUBA

    The Committee fully supports the budget request of 
$9,000,000 for the Cuba democracy program and supports its 
goals of promoting democratization, respect for human rights, 
and the development of a free market economy in that country. 
When allocating these funds the Committee expects USAID to 
consider proposals at or through institutions of higher 
education in the United States and expects that competitive 
procedures will be followed with regard to such proposals.

             COOPERATION EFFORTS IN THE WESTERN HEMISPHERE

    The Committee is recommending a minimum regional allocation 
of $20,000,000 for hemispheric cooperation efforts specifically 
related to special trade arrangements with the United States in 
the context of labor and environmental cooperation, including 
trade capacity building. The Committee requests a consultation 
on the utilization of these funds among countries and spending 
priorities prior to allocations or 90 days after enactment.
    The Committee expects these funds to be coordinated with 
the Office of Trade Capacity Building of the United States 
Trade Representative's Office and other agencies integral to 
cooperation in the context of special trading arrangements.

  INTER-AGENCY COORDINATION AND CAPACITY BUILDING IN TRADE AND OTHER 
                                 AREAS

    The Committee supports the utilization of Economic Support 
Funds to build capacity in trade, labor and the environment, 
and other areas identified by the United States and other 
developing countries. Specifically, given the fluid nature of 
cooperation related to special trading arrangements with the 
United States, the Committee places a premium on interagency 
coordination to provide the Department of State the latest 
insight into what constitutes the most appropriate cooperation. 
For this reason, last year the Committee requested that the 
Department of State consult with the Office for Trade Capacity 
Building of the Office of the United States Trade 
Representative (USTR) in resource allocation and programming. 
For this fiscal year, the Committee requests that the 
Department of State, in coordination with USTR, report not 
later than 120 days after enactment on how this consultative 
process worked last year and steps that will be taken to 
improve upon it. Regions of interest to the Committee 
specifically relate to those where the United States has 
entered into or is about to enter into special trading 
relationships such as southern Africa, Central America, and the 
Andean region. The report should include the identification of 
fiscal year 2005 resources used to support these special 
trading relationships in the furtherance of United States 
foreign policy objectives.

                    HUMAN RIGHTS AND DEMOCRACY FUND

    The Committee has provided the budget request of 
$27,000,000 for the Human Rights and Democracy Fund and 
recommends that $1,200,000 should be provided to support the 
Reagan/Fascell Democracy Fellows Program of the National 
Endowment for Democracy to enable activists, scholars, 
journalists, and practitioners from around the world to help 
make contributions to the strengthening of democracy in their 
respective countries. This program was authorized in section 
104(a)(2)(B) of H.R. 3427 as enacted into law as part of Public 
Law 106-113, and helps keep alive the legacy of our former 
President.
    The Committee also strongly recommends that funding be made 
available in fiscal year 2005, as in fiscal year 2004, for 
democracy programs in China through the National Endowment for 
Democracy (NED). Finally, the Committee recommends restoration 
of up to $500,000 through the National Endowment for Democracy 
for funding of private nongovernmental organizations working to 
support the development of democracy in North Korea.

                          PACIFIC TUNA TREATY

    The Treaty on Fisheries between the United States and the 
governments of certain Pacific Island States, popularly known 
as the South Pacific Regional Fisheries Treaty, requires that 
$18,000,000 in economic assistance be provided annually to the 
South Pacific Islands. Therefore, the Committee recommends that 
the treaty obligations be met through the payment of 
$18,000,000 in fiscal year 2005, as requested by the President.

            CONFLICT RESOLUTION AND RECONCILIATION PROGRAMS

    The Committee recognizes the importance of conflict 
resolution and reconciliation programs as a tool for creating a 
climate of peace in regions of conflict. The Committee is 
recommending $12,000,000 to support reconciliation programs and 
activities, which bring together individuals of different 
ethnic, religious, and political backgrounds from areas of 
civil conflict and war. Funding should be made available 
through an established process for organizations that provide 
such programming. The Committee recommends the Department of 
State actively consider proposals submitted by the following 
organizations:
          Seeds of Peace, a pioneer in this effort, which has 
        helped young people overcome fear, prejudice, and other 
        obstacles to peace;
          Jerusalem International YMCA;
          Interns for Peace;
          Foundation for Environmental Security and 
        Sustainability;
          Partners for Democratic Change;
          Roots of Peace;
          Arava Institute;
          Facing History and Ourselves;
          Peacemaker Circle International;
          Project Children and Cooperation Ireland; and
          Interfaith Encounter Association.
    The Committee requests that the Department of State 
initiate an annual report on the status of applications and 
funding for these and other organizations supported through 
this program. Such report should be provided to the Committee 
not later than May 1 of each year.

                                LIBERIA

    The Committee recognizes the dire but improving situation 
in Liberia and the need to provide necessary support to ensure 
the success of the disarmament, demobilization, rehabilitation, 
and reintegration program underway with the support of the 
international community. The Committee supports proposals to 
promote democracy and the rule of law through financial support 
of non-governmental organizations.

                                 BURMA

    The Committee supports the budget request of $7,000,000 for 
assistance for Burma, which should be made available for 
activities (including media support) among Burmese who have 
fled to neighboring countries, especially Thailand. These funds 
should continue to be used to support on-going democracy 
programs. In addition, funds should be allocated for 
humanitarian assistance for displaced Burmese and host 
communities in Thailand, and for Thailand-based, 
nongovernmental organizations operating along the Thai-Burma 
border to provide food, medical and other humanitarian 
assistance to internally displaced people in Burma.

                ALLOCATION OF FUNDS RELATIVE TO REQUEST

    The Committee recommendation assumes the following 
adjustments to the President's budget request, not referenced 
above:
          $3,500,000 for the Safe Skies initiative;
          No funding for the new initiative for regional 
        anticorruption initiatives; these activities are funded 
        under ``International Narcotics Control and Law 
        Enforcement'' and ``Nonproliferation, Anti-terrorism, 
        Demining and Related Programs'';
          Without prejudice, a reduction of $50,000,000 
        associated with assistance for Turkey; the Committee 
        notes that $1,000,000,000 in grant and loan assistance 
        was appropriated for Turkey in Public Law 108-11, and 
        these funds remain unexpended;
          No funding for the new line item for trade capacity 
        building; these activities are subsumed under funding 
        for Hemispheric Cooperation, which is funded at 
        $20,000,000;
          No additional funding for Muslim Outreach; this new 
        program would focus on public diplomacy programs, which 
        are more appropriately funded elsewhere; and
          A reduction of $14,000,000, to be assessed against 
        country-level and programmatic increases identified in 
        the President's budget request for East Asia and the 
        Pacific, and the Near East (excluding Israel, Egypt, 
        and Jordan).

                         AVAILABILITY OF FUNDS

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

                     International Fund for Ireland





Fiscal year 2004 level................................       $18,391,000
Fiscal year 2005 request..............................       (8,500,000)
Committee recommendation..............................        18,500,000


    The Committee recommends $18,500,000 for the International 
Fund for Ireland in support of the Anglo-Irish Accord. Funding 
for this activity is requested through the Economic Support 
Fund, but the Committee recommendation would restore a separate 
appropriations account for assistance to Ireland. The amount 
recommended is $10,000,000 above the President's budget request 
and $109,000 above the fiscal year 2004 level.
    The Committee strongly urges the International Fund for 
Ireland to take every step possible to ensure that all 
recipients of Fund support are promoting equality of 
opportunity and non-discrimination in employment. The Committee 
further urges the Fund to focus on those projects that hold the 
greatest potential for job creation and equal opportunity for 
the Irish people, regardless of class, creed, gender, or 
ethnicity.

          Assistance for Eastern Europe and the Baltic States





Fiscal year 2004 level................................      $442,375,000
Fiscal year 2005 request..............................       410,000,000
Committee recommendation..............................       375,000,000


    The Committee recommends $375,000,000 for Assistance for 
Eastern Europe and the Baltic States, an amount that is 
$67,375,000 below the level provided in fiscal year 2004 and 
$35,000,000 below the budget request. The Committee intends 
that funding for democracy programs through the National 
Endowment for Democracy continue at a level not less than that 
commensurate with the reduction in the account when compared to 
funding provided in fiscal year 2004, and be provided as a 
transfer of funds pursuant to section 632(a) of the Foreign 
Assistance Act.

                                 SERBIA

    The Committee recommendation assumes a carryover balance of 
$25,000,000 in funding for Serbia, due to the lack of a 
certification pursuant to section 563 of the fiscal year 2004 
appropriations act. This lack of certification has halted the 
obligation of funds for Serbia since March 31, subject to 
certain exceptions. In addition, a reduction of $30,000,000 is 
assumed in the budget request of $87,000,000 for Serbia. Given 
the policies of the current government in Serbia, it is highly 
unlikely the certification can be made in fiscal year 2005. In 
section 563, the Committee has retained language that requires 
the Secretary of State to make a determination and 
certification regarding Serbian compliance with certain 
policies, including compliance with the International Criminal 
Tribunal for the former Yugoslavia, in order for funds to be 
available for Serbia after March 31, 2005. In addition, the 
Committee has included language that clarifies that 
nongovernmental organizations can continue to receive funds for 
democracy activities even if a certification cannot be made. 
The Department of State has interpreted prior year provisions 
as prohibiting assistance for nongovernmental organizations 
that promote democracy if they are based in Belgrade. No change 
in the scope of the provision is otherwise intended by this 
technical correction.
    The Committee has recommended the same bill language as in 
the fiscal year 2004 Act that requires the written approval of 
the Administrator of USAID for loans and projects under the 
Economic Reconstruction Program For Bosnia, authorizes the use 
of local currency funds generated by the Bosnia assistance 
program for programs throughout the region, and authorizes the 
President to withhold funds for economic revitalization for 
Bosnia if he determines that Bosnia is not in compliance with 
the Dayton Accord regarding the presence of foreign forces and 
has not terminated intelligence cooperation with Iranian 
officials. All funds are subject to the provisions of section 
529 of this Act.

                               MONTENEGRO

    The Committee strongly supports assistance for the Republic 
of Montenegro, and notes the strong support given by the 
Republic to the foreign policy of the United States during the 
latter years of the Milosovic regime in Serbia. It urges the 
Administration to make every effort to assist the Government of 
the Republic. The Committee recommendation for Montenegro 
includes $25,000,000, a reduction of $10,000,000 below fiscal 
year 2004, rather than a reduction of $20,000,000 as proposed 
in the budget request. The Committee has not included 2004 
language directing the use of certain assistance for 
Montenegro, but expects the Department of State and USAID to 
consult with the Committee prior to the programming of funds 
for Montenegro for fiscal year 2005.

                           REGIONAL PROGRAMS

    The Committee recommendation includes $59,000,000 for 
regional programs, as requested in the President's budget. This 
category funds environmental infrastructure, independent media 
support, civil society and rule of law, health promotion and 
care, economic development and other programs. While specific 
amounts are not earmarked for the Baltic States, the Committee 
notes that projects and programs are authorized for, and should 
continue in, Estonia, Latvia and Lithuania.

                                ROMANIA

    The Committee recognizes that rail modernization could have 
a significant impact on the security and economic stability of 
Romania, enhancing agricultural, energy and goods distribution 
as well as citizen transit safety and efficiency. The Committee 
recommends that the Department of State work with the 
Government of Romania to consider proposals for the development 
of a communications-based train control system.

                              RULE OF LAW

    The Committee views efforts to promote the rule of law 
worldwide as a critical component of United States foreign 
policy. The Committee strongly supports the public service 
projects initiated by the American Bar Association (ABA) to 
strengthen democracy through programs that promote the rule of 
law in transitional countries. These effective programs rely 
predominantly on the volunteer efforts of American lawyers. By 
supporting the initiatives of reform-oriented policymakers, 
legal scholars, judges, attorneys, and other reformers, these 
programs achieve sustainable results.
    The first of these programs, the Central European and 
Eurasian Law Initiative (CEELI), has proven very successful in 
27 countries in Eastern Europe and the former Soviet Union. 
Despite the reductions in funding for these regions, the 
Committee recommends that best efforts be made to continue 
funding for the ABA's CEELI programs at current levels. The ABA 
has now expanded their public service project into Asia, 
Africa, Latin America and the Middle East, where these valuable 
programs are already underway in such countries as Jordan, 
Bahrain, Morocco, Iraq, Afghanistan, Liberia, Sierra Leone, 
Kenya, China, Indonesia, Afghanistan, Ecuador, and Mexico. The 
Committee recommends expanded funding for ABA programs in these 
regions.
    The Committee strongly supports the USAID-funded program 
for distance learning legal education that has been initiated 
in the Central and East European region, and recommends funding 
for the program in fiscal year 2005.

  TRAINING AND EXCHANGES IN THE FORMER SOVIET UNION AND CENTRAL EUROPE

    The Committee strongly recommends the Administration 
provide funding for the Russian, Eurasian, and East European 
Research and Training Program (Title VIII) at the fiscal year 
2004 level. The Committee also encourages the use of Title VIII 
funds to include comparative research and language training 
concerning Eurasian countries critical to the war against 
terrorism. The Committee also continues to support the East 
Central European Scholarship Program (ECESP) and its important 
work.
    The Committee notes that the USAID-supported East Central 
European Scholarship Program (ECESP) has provided community and 
government leaders, administrators, managers, and educators in 
East Central Europe with the knowledge and skill base to become 
leaders and agents for democratic and free market economic 
reforms. The Committee is concerned that its recommendation 
last year regarding expansion of the ECESP model into Central 
Asia has not, to date, yielded results. The Committee continues 
to believe that the new independent states of Central Asia 
would greatly benefit from the program, and requests a report 
from USAID no later than 90 days after the enactment of this 
Act on steps it could take to collaborate with the Center for 
Intercultural Education and Development to shift the program 
into the Central Asian Republics.

    Assistance for the Independent States of the Former Soviet Union





Fiscal year 2004 level................................      $584,531,000
Fiscal year 2005 request..............................       550,000,000
Committee recommendation..............................       550,000,000


    The Committee recommends $550,000,000 for the Independent 
States of the Former Soviet Union. This is the same as the 
request and $34,531,000 less than the fiscal year 2004 level.
    The Committee has included in subsection (a) prior year 
language providing the funds under this heading 
``notwithstanding any other provision of law'' and applying the 
provisions of section 498B(j) of the Foreign Assistance Act. A 
general provision (section 517) also includes long-standing 
language on human rights, and non-use of funds for enhancing 
military capacities, and providing funds subject to separate 
notification.

                       CHILD SURVIVAL AND HEALTH

    The Committee continues to be concerned about adverse 
maternal and environmental health conditions and the increasing 
incidence of TB/HIV/AIDS in Russia, Ukraine, and the Central 
Asian Republics. The positive results achieved with the small 
amounts already spent for such programs in recent years have 
been dramatic. In order to demonstrate its support for these 
high priority activities that directly affect the citizens of 
these countries, the Committee has included bill language 
allocating not less than $57,000,000 for health and child 
survival activities. In that regard, the Committee commends the 
work of the Firefly Children's Network in its work to assist 
orphaned children.
    The Committee is aware of and commends the Birth Defects 
Monitoring Program recently instituted in Ukraine to detect the 
incidence of birth defects related to the Chernobyl accident, 
and urges continued support for this program at the fiscal year 
2004 level. The Primary Health Care Initiative of the World 
Council of Hellenes is also an important project, and should be 
continued in fiscal year 2005 at level funding as well. The 
Committee commends the work of the Child Health Demonstration 
Program to improve the oral health of Moldovan children. The 
Committee urges USAID's Global Development Alliance to consider 
supporting a proposal submitted by this program.
    The Committee is aware of, and supportive of, the National 
Program of Action for the Protection of the Arctic Marine 
Environment, which is implemented in part by the Russian 
Ministry of Economic Development and Trade. The Committee 
supports additional funding for this program, either through 
this account or through programs funded under ``Economic 
Support Fund''.

          INTERNATIONAL AND COMMUNITY PARTNERSHIPS IN EURASIA

    The Committee supports partnerships between Russian and 
American institutions, such as the Volgograd Russia Health 
Partnership and similar medical partnerships.
    The Committee also supports the goals of the Ohio-Kharkiv 
Initiative, and commends the Department of State, the State of 
Ohio, and the Kharkiv Oblast (Ukraine) for working with the 
Great Lakes Consortium as the primary facilitator.

                              RUSSIA-IRAN

    The Committee again recommends language dealing with 
Russian nuclear and ballistic missile cooperation with Iran. 
The language is identical with that contained in existing law. 
The Committee remains disturbed by reports that indicate that 
Russian entities are extensively engaged with Iran in 
cooperative projects that significantly enhance Iran's 
ballistic missile capabilities. The ballistic missile 
cooperation, combined with Russian nuclear cooperation with 
Iran, represent a significant step in Iran's efforts to obtain 
a comprehensive, highly sophisticated weapons of mass 
destruction capability. The Committee reiterates the language 
from the fiscal year 2000 Statement of the Managers ``that 
assistance to combat infectious diseases, child survival and 
non-proliferation activities, support for regional and 
municipal governments, and partnerships between United States 
hospitals, universities, judicial training institutions and 
environmental organizations and counterparts in Russia should 
not be affected by this section.''

                                UKRAINE

    The Committee encourages USAID in Ukraine to coordinate its 
agriculture sector activities with the Department of 
Agriculture to promote modern agricultural methods through 
exchanges and other appropriate means. The Committee also 
recommends that all efforts be made to cooperate with public 
and private efforts to return confiscated religious property to 
their confessions. In addition, the Committee strongly 
encourages support for ``Good Governance'' programs and 
election-related assistance for Ukraine.

               SOUTHERN CAUCASUS REGION: NAGORNO-KARABAKH

    The Committee continues to be concerned about the plight of 
the victims of the Nagorno-Karabakh conflict, and recommends 
that up to $5,000,000 should be made available to address 
ongoing humanitarian needs in Nagorno-Karabakh.

       SUPPORT OF PEACEFUL RESOLUTION OF SOUTH CAUCASUS CONFLICTS

    The Committee reiterates its view that the extent and 
timing of United States and multilateral assistance, other than 
humanitarian assistance, to the government of any country in 
the Caucasus region should be proportional to its willingness 
to cooperate with the Minsk Group and other efforts to resolve 
regional conflicts.
    In furtherance of a peaceful resolution to the Nagorno-
Karabakh conflict, and in support of the confidence building 
measures discussed at NATO and OSCE summits, the Committee 
strongly supports confidence-building measures among the 
parties to the conflict. Such measures include strengthening 
compliance with the cease-fire, studying post-conflict regional 
development such as landmine removal, water management, 
transportation routes and infrastructure, establishing a youth 
exchange program and other collaborative and humanitarian 
initiatives to foster greater understanding among the parties 
and reduce hostilities.
    The Committee has included renewed authority for the 
President to provide humanitarian assistance to the region, 
notwithstanding the restrictions of section 907 of the FREEDOM 
Support Act. The bill language is unchanged from last year. 
This exemption allows for direct assistance by American NGOs to 
refugees and displaced persons throughout the region, including 
those in Nagorno-Karabakh. The Committee understands that 
humanitarian assistance may include a broad range of activities 
and partnerships with United States hospitals and universities 
in maternal and children's health, eldercare, basic education 
and environmental health.

                                ARMENIA

    The Committee recommends that $65,000,000 be made available 
from funding under this heading for Armenia, and has included 
this recommendation in bill language. This is $3,000,000 above 
the request. Funding for this increase should be derived by 
reducing the funding available for regional programs.
    The Committee also recommends that the Department of State 
review a proposal to fund a Central Diagnostic Laboratory in 
the Caucasus, to be located in Armenia.

                       EXPANDED THREAT REDUCTION

    The Committee includes up to $15,000,000 for the bilateral 
United States Civilian Research and Development Foundation 
(CRDF) in this account.

                       DEMOCRACY AND HUMAN RIGHTS

    The Committee is concerned by the risks to democracy and 
human rights in some of the independent republics of the former 
Soviet Union, particularly in Russia, Ukraine, and Belarus. The 
Committee urges the Administration to commit a greater 
proportion of the resources appropriated to this account, both 
in bilateral country programs and regional programs, to support 
for democracy and human rights nongovernmental organizations. 
Organizations such as the Committee of Soldiers' Mothers in 
Russia can make an important contribution to civil society in 
these countries. Funds should also be provided through the 
National Endowment for Democracy and its core institutes. The 
Committee requests a report from the Coordinator for Assistance 
to Europe and Eurasia on the plans for increasing emphasis on 
support for democracy and human rights nongovernmental 
organizations as part of a strategy to enhance the prospects 
for democracy in Europe and Eurasia. Such report should be 
submitted not later than March 1, 2005, and the Committee 
expects the Coordinator's office to consult with the Committee 
in preparing the report.

                          Independent Agencies


                       Inter-American Foundation





Fiscal year 2004 level................................       $16,238,000
Fiscal year 2005 request..............................        15,185,000
Committee recommendation..............................        16,238,000


    The Committee recommends $16,238,000 for the Inter-American 
Foundation, $1,053,000 above the request and the same as the 
fiscal year 2004 level.

                     African Development Foundation





Fiscal year 2004 level................................       $18,579,000
Fiscal year 2005 request..............................        17,000,000
Committee recommendation..............................        18,579,000


    The Committee recommends funding for the African 
Development Foundation at a level of $18,579,000. This is 
$1,579,000 above the request and the same level as in fiscal 
year 2004.
    The Committee recognizes and supports the African 
Development Foundation's efforts to identify and leverage non-
appropriated resources. The Committee requests the President of 
the Foundation to include in his annual report to the Committee 
the amount and use of any non-appropriated funds received, if 
applicable.

                              Peace Corps





Fiscal year 2004 level................................      $308,171,000
Fiscal year 2005 request..............................       401,000,000
Committee recommendation..............................       330,000,000


    The Committee recommends $330,000,000 for the Peace Corps, 
an amount that is $71,000,000 below the budget request and 
$21,829,000 above the amount enacted for fiscal year 2004. 
Prior year language addressing the purchase of motor vehicles, 
abortion, and availability of funds has been continued in this 
Act. Last year's language made permanent the Peace Corps' 
authority to waive the five-year rule for positions involving 
the safety of Peace Corps volunteers and, as such, is not 
repeated. The Committee encourages the Peace Corps to utilize 
this authority.
    The Committee recognizes that the life of a Peace Corps 
volunteer is often challenging and risky and notes the 
significant improvements the Peace Corps has made in support of 
the health and safety of its volunteers. However, the Committee 
remains concerned that potential Peace Corps volunteers do not 
have enough information available to make informed decisions 
about the risks they may face in their new positions. Volunteer 
safety and health must remain the top priority of the Peace 
Corps.
    The Committee notes that the Director of the Peace Corps 
has not submitted individual Country Security reports as urged 
in House Report 108-222. The Committee directs the Director of 
the Peace Corps to submit to the Committee not later than 60 
days following enactment of this Act a report containing these 
reports and describing how the Peace Corps can make available, 
including through its website, country-specific reports 
describing the risks volunteers face to their health and 
safety.

                    Millennium Challenge Corporation





Fiscal year 2004 level................................      $994,100,000
Fiscal year 2005 request..............................     2,500,000,000
Committee recommendation..............................     1,250,000,000


    The Committee recommends $1,250,000,000 for the Millennium 
Challenge Corporation (MCC), an amount that is $1,250,000,000 
below the request and $255,900,000 more than the 2004 enacted 
level. The recommended reduction solely reflects the 
constrained budgetary situation in 2005, and more specifically 
the Committee's allocation relative to the President's request 
and the need to address funding increases for other 
Presidential and Congressional priorities for 2005.
    The Committee commends the MCC for consulting with the 
Committee as it has begun operations and initiated negotiating 
compacts with selected countries and urges the MCC to continue 
these consultations.

                          NEAR MISS COUNTRIES

    The Committee has included a provision to provide 
assistance to certain countries that miss MCC eligibility as 
defined in section 616 of the Millennium Challenge Act of 2003. 
The Committee has included a limitation of 10 percent of funds 
again in 2005 for such activities. While the Committee expects 
USAID to be a primary implementer of these funds, the Committee 
also expects the Department of State, Department of Treasury 
and Department of Justice to implement programs when deemed 
relevant and necessary.

     COORDINATION WITH THE UNITED STATES AGENCY FOR INTERNATIONAL 
                              DEVELOPMENT

    The Committee recognizes the important role of USAID in 
preparing countries for MCC eligibility as well as helping the 
MCC generate effective partnerships with developing countries. 
The Committee believes a strong working relationship is 
imperative in order to achieve clarity and a division of 
responsibility. The Committee is aware that USAID has field 
missions in 13 of the 16 MCC eligible countries. The Committee 
expects that in the few countries with compacts in 2004 and 
2005, USAID will revise its strategic objectives for said 
country given that USAID country assistance will likely be 
significantly smaller than the funding levels of the compact, 
consistent with the President's vision of the MCC. Therefore, 
the Committee directs USAID and the MCC to consult with the 
Committee after completion of a compact negotiation on the 
impact compact funding will have on the USAID programs, 
including any anticipated changes to current and future 
assistance programs. The Committee seeks to ensure that finite 
resources are used optimally across countries and development 
sectors.

                   CONGRESSIONAL BUDGET JUSTIFICATION

    The President requested significant funding for fiscal 
years 2004 and 2005 for the MCC but provided little additional 
information in the form of a Congressional Budget 
Justification. Therefore the Committee has included a provision 
requiring such a justification, and the Committee expects that 
this document will be submitted within 30 days of the 
President's request for 2006. For fiscal years 2004 and 2005, 
it should include actual and estimated information regarding 
the following: (1) number of employees and detailed estimates 
of administrative expenses, (2) number of compacts and details 
for each compact at the program, project or activity level 
(including level of funding and activity per recipient), (3) 
level of funds transferred to other United States Government 
agencies, and (4) funds provided for threshold countries by 
country and program, project or activity. For the President's 
request in 2006, the justification should describe the 
opportunity to generate economic growth and reduce poverty in 
developing countries consistent with MCC mandates and 
processes.

                          MULTI-YEAR COMPACTS

    The Committee is concerned about the possibility the MCC 
will enter into multi-year compacts with countries without 
obligating full funding of the compact. The Committee opposes 
committing future Congresses to funding prior year compacts. 
Therefore the Committee directs the MCC to only enter into 
compacts for which it has complete funding available from 
existing appropriations and has recommended bill language on 
this matter.

                         INITIAL MCC DECISIONS

    On February 2, 2004, the MCC published a list of candidate 
countries; on March 5, 2004, the MCC published the methodology 
and criteria for its first year of operations; on May 11, the 
MCC published a list of eligible countries and invited all 
eligible countries to submit proposals according to guidelines 
issued on May 3, 2004. In the opinion of the Committee, the MCC 
followed the authorizing legislation in identifying candidate 
countries, methodology and criteria, and eligible countries but 
with slight deviations from the legislative intent. The MCC did 
not associate the actual data of country performance with the 
methodology and criteria until several weeks later and after 
the period of allowing for public comment. The Committee 
directs the MCC to release future proposed data for evaluating 
country performance at the time of releasing the methodology 
and criteria for MCC Board determinations. This will allow the 
MCC to maximize the reception of public comment during 
subsequent Board determinations of eligibility.

                             MCC OPERATIONS

    As stated in the Chief Executive Officer's testimony before 
the Committee, the Committee understands and supports how the 
MCC will emphasize policy reform, focus exclusively on 
sustainable growth, operate in a spirit of partnership, require 
its partner countries to incorporate the views of broad 
elements of their societies, focus on results and establish 
outcome-based standards up front, and establish accountability 
as a key operating principle.
    Due to budget constraints, the Committee recommends that 
compacts be negotiated for three or four years. At the end of 
this time period, the MCC should be prepared to allow compacts 
to expire unless the MCC decides to extend them under the terms 
of the authorization legislation. The Committee presumes this 
decision will be merit based. The Committee notes that the 
authorization places a fixed cap for the maximum length of a 
compact at five years, including extensions or amendments. That 
being noted, countries and the MCC still may pursue subsequent 
compacts after an initial compact expires.
    The Committee recommends that the MCC hold a public comment 
period on modifications to country eligibility criteria, and 
consult periodically with the appropriate committees of 
Congress on possible modifications. During its consideration of 
the fiscal year 2005 methodology and criteria, the Board should 
thoroughly examine their accuracy and objectivity, and consider 
changes to source data if appropriate. After eligibility 
criteria and sources have been established for fiscal year 
2005, the Board should implement a two-year review cycle to 
allow for stability in eligibility incentives, and a greater 
focus on compact implementation and results.

                          Department of State 


                      Global HIV/AIDS Initiative 





Fiscal year 2004 level................................      $488,103,000
Fiscal year 2005 request..............................     1,450,000,000
Committee recommendation..............................     1,260,000,000


                  GLOBAL HIV/AIDS INITIATIVE: SUMMARY

    The Committee appropriates $1,260,000,000 for the ``Global 
HIV/AIDS Initiative'' account, $771,897,000 more than enacted 
in fiscal year 2004 and $190,000,000 less than requested by the 
President due entirely to a shift in programmatic funding 
between this account and the Child Survival and Health Programs 
Fund. This account is the central funding for the Emergency 
Plan for AIDS Relief, overseen by the Global AIDS Coordinator 
at the State Department.
    The Committee's recommendation includes $170,000,000 not 
included in the President's request for this account. This 
$170,000,000, to be used for so-called ``baseline'' programs in 
the Emergency Plan's focus countries, was requested in the 
Child Survival and Health Programs Fund bilateral HIV/AIDS 
earmark. To clarify funding for focus countries and non-focus 
countries, the Committee recommends appropriating all funding 
for the fifteen focus countries directly into this account. The 
Committee emphasizes that the shift should not affect the 
implementation of this funding.
    In addition to this account, the Committee includes three 
other sources of funding for HIV/AIDS: bilateral HIV/AIDS 
programs in the Child Survival and Health Programs Fund; the 
Global Fund to Fight AIDS, Tuberculosis, and Malaria; and other 
accounts, such as regional accounts for the former Soviet Union 
and eastern Europe:

Global HIV/AIDS Initiative..............................  $1,260,000,000
Child Survival and Health (bilateral)...................     330,000,000
Global Fund to Fight AIDS, TB, and Malaria (estimated)..     240,000,000
Other accounts..........................................      36,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total.............................................   1,866,000,000

    As elsewhere in this report, the amount of the Global Fund 
grant estimated to be allocated to HIV/AIDS programs is 
determined using historical Global Fund grant approval trends.
    The Committee notes that overall funding levels that are 
often referenced for the Emergency Plan for AIDS Relief include 
amounts for tuberculosis and malaria as well as funding 
provided from other appropriations Acts. In addition to the 
$1,866,000,000, the Committee's recommendation includes 
$148,500,000 for tuberculosis and $184,000,000 for malaria 
programs. These amounts are more fully described under the 
heading ``Child Survival and Health Programs Fund''. This Act 
would thus provide in total $2,198,500,000 to fight AIDS, TB, 
and malaria, slightly more than requested by the President and 
$593,000,000 more than enacted in fiscal year 2004.

          GLOBAL HIV/AIDS INITIATIVE: GLOBAL AIDS COORDINATOR

    The Committee considers the central goals of the Global 
HIV/AIDS Initiative to be the ``2-7-10'' goals, signifying the 
millions of infections averted and people receiving treatment, 
care, and support by the end of five years. The Committee also 
notes that the percentage allocations included in Public Law 
108-25 were developed before the price of AIDS drugs and other 
commodities dropped significantly. The office of the Global 
AIDS Coordinator should ensure that it is meeting the 2-7-10 
goals in the most expeditious, efficient manner.
    Much progress has already been made. As of June, 2004, the 
Office of the Global AIDS Coordinator had approved 
$770,000,000, not including administrative costs, to 
dramatically increase treatment, prevention, care and support 
programs in the fifteen focus countries. As a result of these 
funds, 200,000 people will receive life-extending treatment, 
and more than 1,000,000 people affected by the disease will 
receive care and support. Orphans and vulnerable children will 
receive the benefits of nearly 10 percent of the fiscal year 
2004 funds overseen by the Global AIDS Coordinator. The 
Committee urges the Office of the Global AIDS Coordinator to 
maintain this level of support for orphans and vulnerable 
children in the coming year.
    A primary component of the Global AIDS Coordinator's 
approach is and should continue to be building and 
strengthening the indigenous and local health care institutions 
that provide HIV/AIDS treatment, care, and support, and prevent 
future HIV/AIDS infections. The fight against HIV/AIDS is a 
long-term battle very different than fighting polio. Instead of 
temporary systems to deliver a few drops of vaccine, long-term 
infrastructure must be designed and built, incorporating goals 
of sustainability and providing incentives for greater civil 
society participation and national political commitment in 
fighting the disease.
    The United States has committed itself to a historic 
undertaking, one that will take the combined efforts of many 
partners. It must also work with the international community to 
coordinate projects, leverage funding, and develop a stronger 
international coalition to build these long-term systems. In 
April, 2004, the Global AIDS Coordinator took a significant 
step forward in this regard by signing an agreement with the 
United Kingdom, UNAIDS, Australia, Belgium, Canada, Denmark, 
Finland, France, Germany, Ireland, Italy, Japan, Luxembourg, 
the Netherlands, Norway and Sweden to pursue the so-called 
``Three Ones'': one HIV/AIDS action framework to coordinate the 
work of all involved parties; one national AIDS authority; and 
one country-level system to monitor and evaluate programs. The 
Committee notes this promising development and will closely 
follow its implementation. The Committee urges the Coordinator 
to continue to place importance on coalition building in 
multilateral fora and on donor coordination at the field level. 
The Committee requests that the Coordinator submit a report 120 
days after enactment identifying by focus country the depth and 
breadth of United States coordination with the host country and 
other bilateral and multilateral donors, including the Global 
Fund.
    While building healthcare systems and delivering 
prevention, treatment, care and support lie at the core of the 
Global HIV/AIDS Initiative's mandate, the Office of the Global 
AIDS Coordinator should consider how to efficiently build on 
expertise and programs that fall outside of its responsibility. 
Opportunities exist for it to advance the fight against the 
disease by nurturing such expertise and programs. The Office of 
the Global AIDS Coordinator should consider jointly funding 
such programs. Multisectoral approaches should be pursued, 
especially in countries where the disease has spread into the 
general public. Agricultural practices must adapt to take into 
account fewer farmers and to meet the higher nutrition needs of 
HIV-positive patients. Activities and services that lead to 
enhanced agricultural productivity and increased rural 
employment will help fight the spread of HIV/AIDS and increase 
the effectiveness of prevention, treatment, care and support 
programs. Access to potable water must increase so HIV-positive 
mothers can safely give their babies formula.
    For instance, the Committee notes that approximately 80 
percent of new HIV cases are transmitted sexually and another 
10 percent perinatally or during breastfeeding. It is clear 
that HIV/AIDS prevention and treatment have a strong 
reproductive health component. Therefore, the Committee urges 
the Office of the Global AIDS Coordinator to foster greater 
linkages and coordination between family planning and maternal 
health programs and Emergency Plan activities.
    Programs which address TB/HIV coinfection are another 
example. In some areas of Africa, up to 80 percent of TB 
patients also test positive for HIV, making TB clinics a highly 
effective location to deliver HIV prevention, treatment, and 
care messages. The Office of the Global AIDS Coordinator should 
consider increasing joint funding for TB/HIV programs, working 
in conjunction with USAID.
    While the Committee values its strong relationship with the 
Global AIDS Coordinator, the Committee also notes that this 
office has had considerable difficulty in submitting its 
reports to Congress in a timely manner. The Committee requests 
the Office of the Global AIDS Coordinator to continue to submit 
quarterly obligation and transfer reports as requested in the 
fiscal year 2004 conference report.

            GLOBAL HIV/AIDS INITIATIVE: NON-FOCUS COUNTRIES

    The Committee reaffirms that the Office of the Global AIDS 
Coordinator bears the ultimate responsibility for maximizing 
the effectiveness of United States Government HIV/AIDS funding 
in all countries, both ``focus'' and ``non-focus''. The 
Committee notes the value of prioritizing a limited number of 
heavily-impacted countries, recognizing that the United States 
will still provide leadership in countries where other donors 
will exercise a greater role. To facilitate this approach, the 
Committee has restructured the request to include all funding 
for focus countries from this account. However, it repeats its 
concern that the Office of the Global AIDS Coordinator and the 
implementing agencies will miss opportunities to keep the 
disease from erupting in other countries if strategic direction 
from the office does not include attention to the pandemic's 
threats in other countries.
    Some progress was made in 2004 to increase funding to a 
priority set of non-focus countries, with the understanding 
that a regularized system would be established for fiscal year 
2005. While the Committee has included additional resources in 
the ``Child Survival and Health Programs Fund'' for these non-
focus countries, it expects the Office of the Global AIDS 
Coordinator to consider further requests for funding from its 
implementing agencies.
    The Committee requests the Office of the Global AIDS 
Coordinator to submit to the Committee within 30 days of 
enactment a description of the process it intends to use, 
beginning in fiscal year 2005, to determine funding levels for 
the non-focus countries. The Committee requests that the Office 
of the Global AIDS Coordinator submit to the Committee within 
60 days of enactment a list of the non-focus countries that 
will receive additional ``Global HIV/AIDS Initiative'' funding 
in fiscal year 2005. The Committee expects that for fiscal year 
2006 this information will be incorporated into the Office of 
the Global AIDS Coordinator's congressional budget 
justification for that year, as well as the report required by 
section 653(a) of the Foreign Assistance Act.

                   GLOBAL HIV/AIDS INITIATIVE: UNAIDS

    In the fiscal year 2004 House report, the Committee made 
clear its assumption that the Office of the Global AIDS 
Coordinator would take over the United States contribution to 
the United Nations Joint Program on HIV/AIDS (UNAIDS). This 
funding would logically fall within the scope of the office's 
authority, yet it has yet to assume responsibility for this 
funding. The Committee has therefore shifted it in the 
recommendations for this Act, and expects that the Office of 
the Global AIDS Coordinator will use existing institutional 
relationships with this organization.

             GLOBAL HIV/AIDS INITIATIVE: PREVENTION EFFORTS

    While treatment will greatly ease the human suffering 
caused by the AIDS epidemic, it will not prevent new 
infections. Support for effective prevention efforts today, 
coupled with an aggressive search for a vaccine and a cure, is 
the cornerstone of defeating this scourge. Efforts to reduce 
and halt new infections must be aggressively pursued in order 
to avoid ever-greater human suffering and burdens on national 
budgets, health care systems, and foreign assistance.
    Until a vaccine or cure is found, treatment can only help 
to alleviate the suffering of those infected and affected by 
the disease. Once again, the Committee includes as part of the 
$26,000,000 recommended for the International AIDS Vaccine 
Initiative, $10,000,000 to be used to undertake cooperative 
projects coordinated with the European Union's ``AIDS Vaccine 
Integrated Project,'' (AVIP) and the Partnership for AIDS 
Vaccine Evaluation (PAVE). The Committee urges the Office of 
the Global AIDS Coordinator to support efforts to develop a 
vaccine against AIDS in addition to this $26,000,000.
    The Committee notes that the face of HIV/AIDS is 
increasingly female, with over 60 percent of new infections 
occurring in women. All too often men insist on sex either 
concealing or not knowing their HIV status, adding urgency to 
finding woman-controlled methods of HIV prevention such as 
topical microbicides. The Committee urges the office of the 
Global AIDS Coordinator to work with USAID to continue the 
United States government's strong support for microbicide 
research and development, and has provided $30,000,000 in this 
Act for such efforts.
    The Committee notes that even in the hardest-hit countries, 
the vast majority of children are uninfected with the virus. 
The Committee supports effective prevention efforts to keep 
them uninfected, and supports the efforts of the Silver Ring 
Thing to promote preventative messages in Ugandan schools.

        GLOBAL HIV/AIDS INITIATIVE: MOTHER-TO-CHILD TRANSMISSION

    The Committee continues to strongly support funding for 
programs to prevent mother-to-child transmission (MTCT) of HIV 
as an integral component of a comprehensive approach to 
fighting HIV/AIDS. Programs to address MTCT have aspects of 
prevention, treatment, care and support, and the Committee 
urges the Office of the Global AIDS Coordinator to provide the 
resources necessary to expand MTCT programs.

GLOBAL HIV/AIDS INITIATIVE: PEDIATRIC HIV/AIDS TREATMENT AND PREVENTION

    Given that 2,500,000 children under the age of 15 are 
infected with HIV/AIDS, the Committee urges the Office of the 
Global AIDS Coordinator to provide the necessary resources as 
part of comprehensive country plans to support care and 
treatment for children with HIV/AIDS. Components of addressing 
pediatric HIV/AIDS could include the development and purchase 
of high-quality, low-cost pediatric formulations of ARVs and 
other medicines, pediatric-specific training to appropriate 
personnel, and the purchase of pediatric-appropriate 
technologies.

 GLOBAL HIV/AIDS INITIATIVE: REFUGEES AND INTERNALLY DISPLACED PERSONS

    The Committee notes that refugees and internally displaced 
persons (IDPs) are especially vulnerable to HIV/AIDS, due to 
fragmentation of families, frequent movement, increased sexual 
violence, and socio-economic vulnerability. Many countries in 
Africa face a double burden of HIV/AIDS and large numbers of 
refugees or IDPs. Nine such countries--Cote D'Ivoire, Ethiopia, 
Kenya, Namibia, Rwanda, South Africa, Tanzania, Uganda, and 
Zambia--are also Emergency Plan focus countries. The Committee 
urges the Office of the Global AIDS Coordinator, in 
coordination with others in the State Department and USAID with 
special expertise on refugees, to develop a comprehensive 
approach to addressing the special HIV/AIDS needs of refugees 
and IDPs.

        GLOBAL HIV/AIDS INITIATIVE: RAPID BLOOD TESTING PROGRAMS

    The Committee is encouraged that the Office of the Global 
AIDS Coordinator has made support for safe blood programs a 
central part of its strategy and recommends expanded funding in 
fiscal year 2005 for such programs.

           GLOBAL HIV/AIDS INITIATIVE: AIDS AND THE MILITARY

    Peacekeeping forces in regions hard-hit by HIV/AIDS face 
unique challenges. In Africa, some militaries are nearly 60 
percent infected with the virus, with some units reporting 
nearly 90 percent infected. The Committee strongly supports 
efforts to develop and implement AIDS education, prevention, 
and treatment programs focused on peacekeeping personnel in 
Africa, especially in West African states.

  GLOBAL HIV/AIDS INITIATIVE: COMMUNITY AND FAITH-BASED ORGANIZATIONS

    The Committee commends the Office of the AIDS Coordinator 
and USAID for making the involvement of community and faith-
based organizations, such as Lott Carey International, a 
central part of the United States strategy for fighting HIV/
AIDS. The Committee urges the Office of the Global AIDS 
Coordinator to continue its support for such organizations and 
to report to the Committee no later than 120 days after the 
date of enactment of this Act on its achievements.

          International Narcotics Control and Law Enforcement





Fiscal year 2004 level................................      $240,274,000
Emergency supplemental funding........................       170,000,000
Fiscal year 2005 request..............................       358,820,000
Committee recommendation..............................       328,820,000


    The Committee recommends $328,820,000 for programs under 
the heading ``International Narcotics Control and Law 
Enforcement''. This is $30,000,000 less than the budget request 
and $88,546,000 above the fiscal year 2004 level, excluding the 
emergency supplemental appropriations act. A limitation of 
$26,117,000 is recommended for administrative expenses.
    The President's request for fiscal year 2005 includes 
significant increases for Mexico, Pakistan, and anti-crime 
programs, and new funding for Indonesia, Liberia, and Morocco. 
Because of budgetary pressures in 2005, the Committee is unable 
to fund most new programs in this account or the President's 
requested increases for existing programs. Of the $88,546,000 
increase the Committee has provided, the Committee supports and 
expects full funding of the request for Mexico given the direct 
positive impact that narcotics eradication, drug interdiction, 
and border security in Mexico has on the national interest of 
the United States. It also recommends full funding for 
Afghanistan given the urgent need to counter the influence of 
the opium trade on the stability of the new Afghan government.
    The Committee assumes funding for Indonesian police 
training will remain in the Economic Support Fund as it has in 
previous years.

                        NARCOTICS AND TERRORISM

    Organized crime and terrorist groups throughout the world 
have long used narcotics as a means to generate revenues to 
support armed conflict and the means to spread turmoil. The 
Committee continues to support a strong United States 
counternarcotics assistance program in order to protect United 
States communities from the ravages of drugs, but increasingly 
to deny drug profits that are often used to finance terrorist 
activities.

                              AFGHANISTAN

    The Committee notes that $50,000,000 was provided to the 
Department of State and $73,000,000 to the Department of 
Defense in the fiscal year 2004 emergency supplemental 
appropriations act for opium poppy eradication, heroin 
interdiction, law enforcement, and alternative development 
activities in Afghanistan. Additionally the United Kingdom, the 
designated lead country on Afghan opium eradication, has 
committed to provide 70 million pounds sterling over the 2002 
to 2005 period. For fiscal year 2005, the Committee recommends 
$90,000,000, the same level as the request for Afghanistan 
under this heading.
    The 2003 opium poppy crop was 61,000 hectares, the second 
largest crop on record. With an earlier than expected harvest, 
the 2004 crop may be even larger as Afghan farmers are 
replanting poppy at greater rates and in more remote areas of 
Afghanistan. The Committee notes that increased security, 
government presence in rural areas, and rural economic 
development in Afghanistan are the only long-term solutions for 
significant reduction of poppy production in Afghanistan. 
Additionally, the Committee expects funds under this heading 
will be used for alternative agriculture development in 
Afghanistan.
    The Committee directs the Secretary of State to consult 
with the Committee before participating in any renewed opium 
farmer compensation program in Afghanistan.
    The Committee commends the President of the Transitional 
Islamic State of Afghanistan and notes that in his address to 
the United States Congress, he stated that ``drug profits 
finance private militias, terrorists and extremists. Drug 
profits undermine our efforts to build a healthy and legitimate 
national economy.'' The Committee directs the Secretary of 
State to consult quarterly in 2005 with the Committee on 
collaborative efforts between the Departments of State and 
Defense, and on details of the eradication, interdiction, and 
alternative development strategy as it evolves.

                            DEMAND REDUCTION

    The Committee includes a provision that up to $10,000,000 
of the funds under this heading should be made available for 
demand reduction programs. As escalating drug use and abuse 
continue to take a devastating toll on the health, welfare, 
security, and economic stability of all nations, the importance 
of drug demand reduction has grown. The Committee expects that 
these funds would be used to contribute to the preservation of 
the stability of societies threatened by increasing drug abuse 
and minimizing the impact of international crime.

                                  CUBA

    The Committee has again included a general provision, 
section 572, prohibiting counternarcotics assistance to the 
Government of Cuba. Full reporting and transparency by the 
Cuban Government and United States monitoring of the use of 
counternarcotics assistance in Cuba would be difficult if not 
impossible, according to the State Department, given Cuban 
general hostility toward the United States Government. 
Additionally, provision of assistance to the maritime drug 
interdiction force (the TGF) would, according to both Amnesty 
International and the State Department's Country Reports on 
Human Rights Practices, violate section 551 of this Act, the 
so-called Leahy amendment.

                        ANTI-CORRUPTION COMPACTS

    According to the Department of State, the concept of anti-
corruption compacts was developed as a multilateral form of 
assistance at the G-8 Evian Summit in June 2003, yet funding 
for these compacts is requested in 2005 as a bilateral program. 
While fighting corruption is integral to promoting economic 
growth overseas, the Committee is concerned that the anti-
corruption compact concept was developed outside of the context 
of the Millennium Challenge Corporation (MCC). Given that a 
primary focus of MCC is anti-corruption, the Committee would 
expect the anti-corruption compacts to fit easily into the 
MCC's threshold country assistance programs. Therefore the 
Committee expects anti-corruption compacts to be closely 
coordinated with the MCC, and the Committee directs the 
Secretary of State to consult with the Committees before any 
such compacts are signed.

                          TERRORIST FINANCING

    The Committee notes that this Act supports efforts to 
combat terrorist financing through three accounts--
International Narcotics and Law Enforcement, Nonproliferation, 
Anti-terrorism, Demining, and Related Programs, and Treasury 
International Affairs Technical Assistance. While each office 
has specific purposes and core competencies, the Committee 
expects that they are working in tandem, along with other 
relevant Federal agencies and offices, toward the common goal 
of stemming the flow of funds to terrorists and terrorist 
organizations.
    The Committee notes that a recent Council on Foreign 
Relations report on terrorist financing recommended, among 
other things, that the National Security Council and the Office 
of Management and Budget should conduct a cross-cutting 
analysis of the budgets and activities of all United States 
government agencies as they relate to terrorist financing, in 
order to ensure efforts are coordinated most effectively. The 
Committee directs the Office of Management and Budget, not less 
than 90 days after the enactment of this Act, to transmit a 
report to Congress summarizing this information, with a 
classified annex if necessary.

                  UNITED NATIONS DRUG CONTROL PROGRAM

    The Committee is concerned that the United States 
contribution to the United Nations Drug Control Program has 
approached 40 percent in recent years, while the average United 
States contribution to most United Nations organizations 
averages about 25 percent. The Committee recognizes the 
important role the UNODC played in Afghanistan in past years. 
Therefore the Committee does not expect a lower United States 
contribution to the UNODC, but urges the Secretary of State to 
work with other nations to increase their contributions, 
especially countries that are the recipients of the largest 
percentages of Afghan heroin.

                     Andean Counterdrug Initiative





Fiscal year 2004 level................................      $726,687,000
Fiscal year 2005 request..............................       731,000,000
Committee recommendation..............................       731,000,000


    The Committee recommends $731,000,000 for the Andean 
Counterdrug Initiative, an amount equal to the request and 
$4,313,000 above the 2004 level. The Andean Counterdrug 
Initiative is the continuation of the Administration's multi-
year counterdrug assistance efforts designed to sustain and 
expand programs initially funded by Plan Colombia in the fiscal 
year 2000 emergency supplemental appropriations act. A 
limitation of $16,285,000 is recommended for administrative 
expenses for the Department of State and $4,500,000 for USAID. 
The Committee notes the requirement in the bill that the 
Secretary of State, in consultation with the Administrator of 
USAID, shall provide to the Committees on Appropriations not 
later than 45 days after the date of the enactment of this Act 
and prior to the initial obligation of funds appropriated under 
this heading, a report on the proposed uses of all funds under 
this heading on a country-by-country basis for each proposed 
program, project, or activity.
    The Committee requests that the Secretary of State submit 
to the Appropriations Committees a semi-annual report with 
respect to the Andean Counterdrug Initiative. Each report shall 
include an accounting of all aircraft, vehicles, boats and 
lethal equipment (other than ammunition) transferred to the 
militaries or police of any nation with funds made available 
under this heading. Additionally, the Committee requires that 
the personnel cap and Plan Colombia reports as required in the 
fiscal year 2000 emergency supplemental appropriations act also 
be submitted to the Committees on Appropriations.
    The Committee notes that the caps on personnel in Public 
Law 106-246, as amended by Public Law 107-115, remain 
applicable in 2005. The Committee has not recommended amending 
the caps as requested by the President, but notes that they are 
addressed in the Department of Defense authorization act, 2005.

                                COLOMBIA

    The Committee notes that the people of Colombia have shown 
a long-term resilience and tolerance for difficult and violent 
conditions, and the Committee supports the President of 
Colombia and the Colombian government's efforts to collect the 
additional resources needed to invest in the military, police, 
and social programs to restore order and to give Colombians 
better access to services.
    The Committee notes the progress in coca eradication that 
the Andean Counterdrug Initiative has been able to achieve. 
Coca cultivation dropped 21 percent in Colombia in 2003, from 
144,450 hectares in 2002 to 113,850 hectares in 2003. This 
decrease in Colombian cultivation has not been offset by 
increased production elsewhere; the Andean regional coca 
cultivation was reduced by 18 percent overall in 2003.
    Plan Colombia was proposed and implemented as a 5-year 
program, and its objectives were to be met by the end of 2005. 
While many of its objectives have been met, the Committee is 
concerned that the level of resources provided by the United 
States Government to Colombia is increasing in 2005, including 
increased funding for a costly air bridge denial program. 
Therefore, the Committee anticipates a decrease in the 
President's budget request for 2006 for the Andean Counterdrug 
Initiative for Colombia.

                       AVAILABILITY OF ASSISTANCE

    The Committee again has extended the availability of funds 
provided for assistance for Colombia to support a unified 
campaign against narcotics trafficking, against activities by 
organizations designated as terrorist organizations, and to 
take actions to protect health and human welfare. The Committee 
is supportive of the Colombian government in its attempts to 
provide security for the Colombian people and has provided 
these authorities in recognition that the narcotics industry is 
invariably linked to the terrorist groups, including the 
paramilitary organizations, in Colombia. As in prior years, the 
expanded authority is not a signal from the Committee for the 
United States to become more deeply involved in assisting the 
Colombian Armed Forces in fighting the terrorist groups, 
especially not at the expense of the counternarcotics programs, 
but to provide the means for more effective intelligence 
gathering and fusion, and to provide the flexibility to the 
Department of State when the distinction between 
counternarcotics and counterterrorism is not clear cut. The 
Committee directs the Secretary of State to consult with the 
Committee if the implementation of the expanded authorities 
changes from that described in the May 2003 report to Congress.

                      INTERNALLY DISPLACED PERSONS

    The Committee directs the Department of State to provide 
$5,000,000 to the Department of State's Bureau for Population, 
Refugees, and Migration (PRM) from funds made available under 
this heading to continue programs benefiting internally 
displaced persons programs in Colombia.

            ALTERNATIVE DEVELOPMENT AND SECURITY IN COLOMBIA

    The Committee strongly supports USAID's continuing 
alternative development strategy that focuses on the historic 
underdevelopment of Colombia's outlying regions. The programs 
concentrate on local infrastructure needs (roads, electricity, 
water) and delivery of services at the community level. This 
focus on an entire community increases the social pressure for 
eradication and also helps organize the community to identify 
and prioritize local needs. To date, communities receiving 
alternative development assistance have voluntarily manually 
eradicated over 16,500 hectares of coca. The Committee hopes 
USAID partners can continue building on their good working 
relationships with mayors and local leaders.
    Additionally, the Committee recognizes that without public 
security and law enforcement, no level of alternative 
development funding by this Committee or the Colombian 
government can result in development that is sustainable. 
Additionally, the Committee is aware of the security threats 
facing program implementers on a daily basis. The Committee 
continues to support the so-called ``carabinieros'' police 
program for establishing law enforcement in rural and remote 
areas and encourages continuing United States assistance for 
the program. With assistance made available under this heading 
in prior years' appropriations acts, the Colombian National 
Police (CNP) have successfully re-established a presence in 158 
municipality capitals that had no police presence as recently 
as August 2002.
    It is the Committee's view that alternative development 
integrated with the presence of the state and the presence of 
law enforcement and security are fundamentally the key to long 
term peace and security in Colombia. The Committee expects the 
allocation of resources in 2005 and the 2006 request will 
reflect those priorities.

                              HUMAN RIGHTS

    The Committee calls on the Department of State to ensure 
that all United States laws regarding human rights, including 
section 551 of this Act, are strictly applied in Colombia and 
each of the Andean nations. The Committee includes a general 
provision from the 2004 appropriations Act requiring that the 
Secretary of State certify that certain human rights conditions 
have been met before 25 percent of funds may be made available 
for assistance for the Colombian Armed Forces.

                                  PERU

    Peru is the second largest recipient of counternarcotics 
and alternative development assistance from the United States. 
The Committee was skeptical in the past about United States 
support for ``autoeradication'', a pilot policy of voluntary 
eradication combined with the use of community development 
projects as an incentive for cooperation. However, the 
Committee notes that even with the current political 
environment in Peru, Peruvian communities have responded 
positively to this voluntary eradication program, and in 2003 
40 percent of eradicated coca was as a result of 
autoeradication. Subsequently, the Committee is concerned that 
the Administration's request for Peru seriously underfunds 
these alternative development programs in order to fund forced 
eradication resources managed by the Department of State. 
Therefore the Committee directs the Department of State to 
consult with the Committee prior to deciding the allocation of 
2005 funds, to ensure that Peru's alternative development 
program is adequately funded.
    The Committee urges USAID to continue working with The 
Field Museum of Chicago on the Cordillera Azul National Park 
project in central Peru. This project has tremendous potential 
to prevent coca from entering more than 5,000 square miles of 
the Huallaga Valley and to improve the quality of life for 
local residents.

                                BOLIVIA

    While the Committee takes special note of the progress that 
Bolivia made in the war against drugs under the Bolivian 
Government's Dignity Plan, this progress could be erased 
quickly if the commitment by either the Bolivian government or 
the United States were to falter. The Committee is concerned 
about the political climate in Bolivia associated with 
alternative development programs funded by the United States. 
Alternative development programs in the Chapare and the Yungas 
areas of Bolivia need local ownership and local participation, 
and if possible, need contributions from the central Bolivian 
government to combat the isolation of these regions from a 
state interest and presence.

                         EUROPEAN CONTRIBUTIONS

    The Committee notes that demand for Colombian coca is 
rising in Europe and approaching United States consumption 
levels of approximately 300 tons a year. European nations and 
the European Union have contributed very little to eradication 
of coca or alternative development programs in the Andean 
region, and often their development programs are funded with no 
view toward eradication policies. The Committee again urges the 
Secretary of State to negotiate with our European allies in 
order to persuade them to contribute additional funds to 
counter-narcotics efforts, alternative development, and 
judicial reform in the Andean region. The Committee directs the 
Secretary of State to submit a report to the Committee not 
later than 120 days after enactment of this Act that details by 
dollar level and fiscal year, multilateral and bilateral 
projects and programs supported by the European Union and by 
individual countries in Europe. Additionally, the report shall 
include a summary of the Department's efforts to persuade the 
EU to contribute additional resources and the results of these 
discussions.

                    Migration and Refugee Assistance





Fiscal year 2004 level................................      $755,712,000
Fiscal year 2005 request..............................       729,789,000
Committee recommendation..............................       756,000,000


    The Committee recommends $756,000,000 for Migration and 
Refugee Assistance, an amount that is $26,211,000 above the 
request and $288,000 more than the amount enacted for fiscal 
year 2004. A limitation of $21,000,000 is recommended for 
administrative expenses.
    The Committee is aware that the Bureau of Population, 
Refugees, and Migration intends to provide 90 percent of its 
overseas assistance funds to international organizations, 
primarily the Office of the United Nations High Commissioner 
for Refugees (UNHCR) and the International Committee of the Red 
Cross, while providing only ten percent to nongovernmental 
organizations. The Committee notes that such a ratio is not 
required by law and urges the Department of State to consult 
with the Committee prior to the allocation of funds in 2005 to 
ensure that funding decisions are based on specific assistance 
needs, not a static formula. The Committee notes that during 
times of conflict and at the beginning of a crisis, 
nongovernmental organizations often are quicker to respond and 
more flexible in meeting the initial and immediate humanitarian 
needs of refugees.
    The Committee notes that, in fiscal year 2004, the 
Department of State provided $2,000,000 for nongovernmental 
organization activities to combat gender-based violence in 
humanitarian and refugee settings. The Committee recognizes 
that there are widespread reports of gender-based violence in 
areas such as the eastern Congo and the Darfur region of Sudan, 
and urges the Bureau of Population, Refugees, and Migration 
(PRM) to support programs to combat this trend and encourage 
efforts to integrate gender-based violence programs with other 
humanitarian relief activities.

                            TIBETAN REFUGEES

    The Committee recommends that not less than $2,000,000 
should be provided for Tibetan refugees in Nepal and India. The 
Committee remains concerned about the situation of Tibetan 
refugees transiting through Nepal en route to resettlement in 
India. A disorganized Nepalese government, a virulent Maoist 
insurgency, and increasingly warm Nepal-China relations have 
led to an environment where Tibetan refugees face difficulties 
in securing safe passage through Nepal. The Committee welcomes 
the Royal Nepalese Government's recent decision to put in 
writing its long-standing agreement that Nepalese authorities 
will hand Tibetans over to the Office of the United Nations 
High Commissioner for Refugees for processing as ``persons of 
concern.'' As United States security cooperation with Nepal 
continues to grow, the Committee urges the Nepalese government 
to take seriously the implementation of its commitments to 
provide safe passage to Tibetans fleeing repression in their 
homeland.

                         RESETTLEMENT IN ISRAEL

    The Committee supports $50,000,000 for humanitarian 
migrants from the former Soviet Union and other countries of 
distress resettling in Israel. Since 1989, Israel has accepted 
more than one million refugees. The Committee remains strongly 
committed to assisting the resettlement of Russian, Eastern 
European, Ethiopian and other humanitarian migrants in Israel. 
The funds provided in this Act assist in the transportation and 
initial absorption costs for humanitarian migrants each year. 
The Committee notes there has been a decline in the numbers 
arriving from the former Soviet Union in the last year. The 
decline in costs associated with this decrease has been offset 
by a significant increase in the cost of providing 
transportation and especially resettlement of a larger number 
of refugees from Ethiopia. However, should the number of 
migrants continue to decline the Committee expects the 
Administration to recommend $40,000,000 for fiscal year 2006.

                        MAGEN DAVID ADOM SOCIETY

    The Committee is disappointed again this year that the 
International Committee of the Red Cross (ICRC) has not taken 
action to admit the Magen David Adom Society of Israel to the 
International Red Cross and Red Crescent Movement. The American 
Red Cross has promoted the membership of the Society in the 
Movement, but little positive action has been forthcoming. As a 
result, the American Red Cross has withheld its headquarters 
contribution to the ICRC for the past few years. Therefore the 
Committee is recommending a continuation of bill language that 
would also withhold the annual headquarters contribution made 
by the Department of State unless the Magen David Adom Society 
is given the opportunity to participate in the activities of 
the International Red Cross and Red Crescent Movement. This 
limitation will not, and is not intended to, restrict funding 
for humanitarian assistance programs that may be programmed 
through the ICRC using other funds provided in this account. It 
is only intended to affect the funding the United States 
provides on an annual basis to the ICRC bureaucracy in Geneva.

     United States Emergency Refugee and Migration Assistance Fund





Fiscal year 2004 level................................       $29,823,000
Fiscal year 2005 request..............................        20,000,000
Committee recommendation..............................        20,000,000


    The Committee recommends $20,000,000 for the Emergency 
Refugee and Migration Assistance (ERMA) Fund, which is 
$9,823,000 less than the 2004 enacted level and the same level 
as the request.

    Nonproliferation, Anti-Terrorism, Demining and Related Programs





Fiscal year 2004 level................................      $351,414,000
Emergency supplemental appropriations.................        35,000,000
Fiscal year 2005 request..............................       415,200,000
Committee recommendation..............................       382,000,000


    The Committee recommends a total appropriation of 
$382,000,000 for programs under the heading ``Nonproliferation, 
Anti-terrorism, Demining and Related Programs'', an amount that 
is $33,200,000 below the request and $30,586,000 above the 
fiscal year 2004 enacted level, excluding emergency 
supplemental appropriations.
    The following table compares fiscal year 2004 funding for 
the programs covered by this account, as well as the 
President's request for fiscal year 2005 and the Committee 
recommendation:

    Non-Proliferation, Anti-Terrorism, Demining and Related Programs


----------------------------------------------------------------------------------------------------------------
                                                                                                Fiscal year 2005
                                                            Fiscal year 2004  Fiscal year 2005      committee
                                                                 enacted           request       recommendation
----------------------------------------------------------------------------------------------------------------
Nonproliferation Programs:
    Nonproliferation and Disarmament Fund.................        29,823,000        34,500,000        30,000,000
    Export Control & Border Security......................        35,788,000        38,000,000        38,000,000
    Science Centers/Nonproliferation of WMD...............        50,202,000        50,500,000        50,000,000
    IAEA Voluntary Contribution...........................        52,687,000        53,000,000        53,000,000
    International Monitoring System.......................        18,888,000        19,000,000        19,000,000
                                                           -----------------------------------------------------
      Subtotal Nonproliferation...........................       187,388,000       195,000,000       190,000,000
                                                           =====================================================
Anti-Terrorism Programs:
    Anti-terrorism Assistance.............................        96,428,000       128,300,000       111,000,000
    Counterterrorism Financing............................  ................         7,500,000         7,500,000
    Terrorist Interdiction Program........................         4,971,000         5,000,000         5,000,000
    CT Engagement w/Allies................................  ................           500,000           500,000
                                                           -----------------------------------------------------
      Subtotal Anti-Terrorism.............................       101,399,000       141,300,000       124,000,000
                                                           =====================================================
Regional Stability and Humanitarian Assistance:
    Humanitarian Demining.................................        49,705,000        59,900,000        55,000,000
    International Trust Fund..............................         9,941,000        10,000,000        10,000,000
    Small Arms/Light Weapons Destruction..................         2,982,000         9,000,000         3,000,000
                                                           -----------------------------------------------------
      Subtotal Regional Stability/Humanitarian Assistance:        62,628,000        78,900,000        68,000,000
                                                           =====================================================
      Total...............................................   \1\ 351,414,000       415,200,000      382,000,000
----------------------------------------------------------------------------------------------------------------
\1\ In addition, $35,000,000 in emergency wartime appropriations and a $10,000,000 transfer from the Emergency
  Response Fund were provided for this account.

                       ANTI-TERRORISM ASSISTANCE

    The Committee recommends $111,000,000 for anti-terrorism 
assistance, an increase of $14,572,000 over the fiscal year 
2004 enacted level. This program, run by the State Department's 
Diplomatic Security officials under the policy direction of the 
Coordinator for Counterterrorism, provides training and skills, 
technical assistance, and equipment to improve professionalism 
and capability in the War on Terrorism. Training is in areas 
such as crisis management, cyber terrorism, dignitary 
protection and kidnap intervention, border control, airport 
security, bomb detection, investigating terrorist financing, 
and response to incidents involving weapons of mass 
destruction. The recommended increase will allow for 
maintenance of all on-going programs, as well as new in-country 
training programs in Colombia, Malaysia, Kenya, the 
Philippines, and the Tri-border area of South America. In 
addition, funding is approved for the ATA Alumni Information 
and Coordination Network, and the Senior Policy Engagement 
Workshop. The Committee directs that the Department of State 
clearly identify the administrative costs for the program, and 
budget for such costs as a separate line item as part of the 
fiscal year 2006 budget justification material for this 
program.

                                DEMINING

    The Committee recommends $68,000,000 for regional stability 
and humanitarian assistance programs. The recommendation 
includes $10,000,000 for the Slovenian International Trust Fund 
(ITF), the same as the budget request. The Committee continues 
to support the work of the International Trust Fund for 
Demining and Mine Victim Assistance to make the Balkans mine-
safe. The ITF has made Kosovo mine-safe, will complete demining 
in Macedonia this year, and anticipates making Serbia and 
Albania mine-safe within the next two years. In addition, ITF 
has provided medical care and rehabilitation to over 830 mine 
victims in the Balkans and mine safety and awareness training 
throughout the Balkans. The Committee directs that such amounts 
may be deposited into that fund only to the extent matching 
amounts are deposited by other governments, entities, or 
persons. In addition, these funds should only be expended by 
the fund in consultation with the United States Government.
    The Committee recognizes the need to remove the landmines 
that separate the two communities on Cyprus in order to 
facilitate a peace on the island. While such demining should be 
accomplished primarily by the parties involved, the Committee 
recommends that up to $500,000 of the funds appropriated for 
humanitarian demining assistance may be provided to the 
International Trust Fund to remove existing landmines and help 
make Cyprus mine-safe.
    The Committee is concerned about the ongoing threat to 
civilians and to lasting peace posed by landmines in Armenia, 
Azerbaijan, and Georgia. Funds appropriated for humanitarian 
demining in this account, or funds allocated for assistance to 
these countries under the account ``Assistance for the 
Independent States of the Former Soviet Union'' may be provided 
to the International Trust Fund for Demining and Victims 
Assistance to implement a regional demining and victim 
assistance program. The Committee also directs that these funds 
must be matched by other governments or private donors before 
they will be released to ITF. Prior to the initiation of such a 
program, the Committee requests that the Department of State 
consult with the Committee.
    The Committee is aware of a proposal involving the Landmine 
Survivors Network to utilize employment-training models to 
address the challenges of unemployment and underemployment in 
the Middle East region. The Committee recommends that the 
Department of State consider a proposal to establish a program 
in Jordan which would employ an integrated approach, 
incorporating the training of individuals who have sustained 
disabling conditions as a result of landmines.
    The Committee recommends $3,000,000 for small arms/light 
weapons destruction, approximately the same level as that 
provided in fiscal year 2004 but $6,000,000 below the budget 
request. The Committee notes that similar demilitarization 
programs are funded under other appropriation accounts in this 
Act.

                       Department of the Treasury


               International Affairs Technical Assistance





Fiscal year 2004 level................................       $18,888,000
Fiscal year 2005 request..............................        17,500,000
Committee recommendation..............................        19,000,000


    The Committee recommends $19,000,000 under this heading for 
international technical assistance by the Department of the 
Treasury, an amount that is $1,500,000 above the request and 
$112,000 above last year's level. The Committee has provided 
the additional $1,500,000 for enhancing the Department of 
Treasury's efforts to combat terrorist financing. In operation 
since 1991, Treasury's Office of Technical Assistance provides 
expert fiscal and monetary policy advisors to countries of the 
former Soviet Union and Eastern Europe. Beginning in fiscal 
year 1999, Treasury created the Treasury International Affairs 
Technical Assistance (TIATA) program and expanded the countries 
to Asia, Africa and Latin America. The Committee directs the 
Office of Technical Assistance (OTA) to notify the Committee 
prior to the obligation of funds for the compensation or travel 
expenses of any individual who is not an employee of the 
Department of Treasury.

                           Debt Restructuring





Fiscal year 2004 level................................       $94,440,000
Fiscal year 2005 request..............................       200,000,000
Committee recommendation..............................       105,000,000


    The Committee recommends $105,000,000 under this heading 
for international debt restructuring by the Department of the 
Treasury, an amount that is $95,000,000 less than the request 
and $10,560,000 above last year's level. Funds in this account 
are subject to the regular notification procedures of 
Committees on Appropriations.
    The Committee recommends $20,000,000 as requested for the 
Tropical Forest Conservation Act (TFCA) programs, up to 
$75,000,000 as requested for a contribution to the Heavily 
Indebted Poor Countries (HIPC) Trust Fund, and at least 
$10,000,000 for bilateral debt relief to the Democratic 
Republic of the Congo (DRC). The Committee has provided the 
Department of the Treasury $85,000,000 for a combination of 
HIPC and the DRC debt relief funding.

               TROPICAL FOREST CONSERVATION ACT PROGRAMS

    The Committee commends the Department of the Treasury for 
fully consulting on a periodic basis, as required by law, to 
review the countries eligible for benefits from the Tropical 
Forest Conservation Act (TFCA) programs. The Committee expects 
the Department of the Treasury to consult with the Committee 15 
days prior to the determination that additional countries are 
found eligible for TFCA.

              HEAVILY INDEBTED POOR COUNTRIES DEBT RELIEF

    In fiscal years 2000, 2001 and 2002, Congress appropriated 
$600,000,000 to the Heavily Indebted Poor Countries (HIPC) debt 
relief program. At the time, the Committee was informed that 
this completed the United States commitment to the multilateral 
HIPC Trust Fund. In the fiscal year 2004 and in the fiscal year 
2005 request, an additional $150,000,000 is committed to the 
HIPC Trust Fund for ``topping up'' of HIPC resources. The 
Committee has fulfilled that commitment if amounts in this Act 
are included.
    The Committee is concerned that fiscal year 2005 is not the 
last year of the HIPC initiative and that the Department of the 
Treasury is unable to curb the future costs of the program. Of 
greatest concern to the Committee are two HIPC assumptions that 
could have great effects on future funding requirements for 
HIPC debt relief by future Congresses. First, debt relief is 
based on a net present value (NPV) of debt payments, but 
because interest rates have fallen so drastically in recent 
years, the NPVs have risen. The result is that more debt relief 
is calculated as needed as a result of this external factor 
that has no bearing on a country's cash flow. The Committee 
directs the Secretary of the Treasury to consult with the 
Committee before the Department agrees to calculating debt 
relief in this manner. Secondly, a HIPC country may borrow from 
the World Bank and other international financial institutions 
between its decision point and completion point for 
consideration of debt relief, and those loans would increase 
the debt relief required under HIPC. Therefore the Committee 
has included a provision limiting the availability of funds so 
as not to create a moral hazard in the allocation of resources 
by the multilateral development banks.

                                 CONGO

    Since 1996, HIPC has been justified to the Committee as a 
strategy to place debt relief within an overall framework of 
poverty reduction. The Committee is concerned that given the 
level of debt service payments the Democratic Republic of the 
Congo (DRC) is making to the United States, bilateral debt 
relief may not be of the immediate greatest benefit to the 
poorest people in that country. Given budgetary constraints, 
the Committee recommends at least $10,000,000 in funds under 
this heading for bilateral debt relief for the DRC. The 
Committee notes that the DRC is a possible recipient of debt 
relief from the HIPC Trust Fund.

                     TITLE III--MILITARY ASSISTANCE


                  Funds Appropriated to the President


             International Military Education and Training





Fiscal year 2004 level................................       $91,159,000
Fiscal year 2005 request..............................        89,730,000
Committee recommendation..............................        89,730,000


    The Committee recommends $89,730,000 for the International 
Military Education and Training (IMET) program, which 
represents a decrease of $1,429,000 below the fiscal year 2004 
level and is the same as the budget request. IMET is part of 
the overall United States security assistance program, and 
through it the United States Government provides training to 
predominantly military students from allied and friendly 
nations. The IMET program exposes students to the United States 
professional military establishment and the American way of 
life, including democratic values and rule of law, respect for 
individual and human rights. In 1990, Congress directed the 
Department of Defense to establish a program within IMET--
called Expanded-IMET or ``E-IMET'' focused on training foreign 
civilian and military officials in three areas: managing and 
administering military establishments and budgets; creating and 
maintaining effective military judicial systems and military 
codes of conduct, and fostering greater respect for the 
principle of civilian control of the military.

                                 GREECE

    The Committee recognizes the country of Greece as a friend 
and ally and urges up to $2,000,000 in funding for assistance 
for that country from the funds appropriated under this 
heading.

                               GUATEMALA

    The Committee includes prior year bill language limiting 
Guatemala to Expanded-IMET only, subject to notification. 
Funding for Nigeria is also subject to notification.

                           IMET AVAILABILITY

    The Committee again recommends that $3,000,000 of IMET 
appropriations remain available until expended.

                   Foreign Military Financing Program


                      INCLUDING TRANSFER OF FUNDS




Fiscal year 2004 level................................    $4,268,665,000
Emergency supplemental funding........................       287,000,000
Fiscal year 2005 request..............................     4,957,500,000
Committee recommendation..............................     4,777,500,000
    (by transfer).....................................     (150,000,000)


    The Committee recommends $4,777,500,000 in Foreign Military 
Financing assistance. This program provides grants for the 
acquisition of United States defense equipment, services and 
training. The Foreign Military Financing (FMF) program enables 
key allies and friendly nations to improve defensive 
capabilities, and fosters bilateral military relationships with 
the United States and interoperability with United States 
forces. The recommended fiscal year 2005 program level is 
$508,835,000 above the fiscal year 2004 level, excluding 
emergency wartime supplemental appropriations, and $180,000,000 
below the budget request.
    The recommended increase above the fiscal year 2004 level 
is primarily due to four factors: $400,000,000 for assistance 
to Afghanistan, an increase of over $350,000,000 primarily to 
help train and equip the new Afghan National Army (ANA); 
$150,000,000 in new budget authority and $150,000,000 in 
transfer authority for assistance for Pakistan, a key ally in 
the war on terrorism; an increase of $72,744,000 for military 
assistance for Israel; and $66,000,000 for assistance to 
Poland, an increase of $46,000,000 for a major ally 
participating in Operation Iraqi Freedom.
    The Committee expects the programmatic reduction of 
$30,000,000 associated with this funding recommendation will be 
offset in part by recoveries of prior year funds. Any funding 
decrease that cannot be offset by recoveries should be assessed 
against proposed country and program allocations not directly 
affecting Operation Iraqi Freedom and assistance for South 
Asia.

                                 ISRAEL

    The Committee recommends a total Foreign Military Financing 
(FMF) program of not less than $2,220,000,000 in grants for 
Israel, which shall be available within 30 days of enactment of 
this Act or by October 31, 2004, whichever occurs later.
    The Committee remains committed to helping Israel maintain 
security. Therefore, the Committee is convinced the United 
States must make every effort to carry out its long-standing 
policy of ensuring that Israel's technological edge is 
maintained. As a result, the Committee has provided an increase 
of $72,744,000 above the fiscal year 2004 level. The Committee 
also believes that a sustained military improvement program 
will be required over the next four years, at an annual rate of 
approximately $60,000,000, to assist Israel in responding to 
emerging security challenges. However, with respect to this 
recommended increase in military assistance, the Committee must 
be very clear that it cannot commit future Congresses to the 
future appropriation of funds. Therefore, future increases in 
military assistance will require the annual review of the 
Congress and will necessarily be based upon an assessment of 
the security situation at the time.
    The Committee also recommends that, to the extent that the 
Government of Israel requests that FMF grant funds for Israel 
be used for such purposes, and as agreed by Israel and the 
United States, funds may be made available for advanced weapons 
systems of which $580,000,000 shall be available for the 
procurement in Israel of defense articles and defense services, 
including research and development. This increase is consistent 
with the understanding that $15,000,000 of the $60,000,000 
increase on an annual basis would be used for these activities. 
It also reflects a recognition by the Committee of Israel's 
need for similar annual increases over the next few years in 
order to provide Israel with increased flexibility in meeting 
the emerging security challenges in the Middle East.
    The Committee supports continued investigation of unique 
United States-developed, centrifuge-based authentic flight 
simulation technology. The Committee believes this technology 
could significantly benefit Israeli Air Force readiness and 
reduce costs and risk associated with traditional training 
methods.

                                 JORDAN

    The Committee strongly supports the Administration's 
efforts to improve Jordanian security and therefore recommends 
full funding of the President's request of $206,000,000 for 
Jordan. Under the leadership of King Abdullah, Jordan plays a 
critical role in supporting peace and security in the Middle 
East. The Committee is well aware that Jordan's security 
requirements are extensive, particularly in the areas of ground 
force modernization and border security.

                                 EGYPT

    The Committee recommends a total of $1,300,000,000 in 
Foreign Military Financing grants for Egypt. Pursuant to the 
President's budget request bill language is recommended that 
would require that funds estimated to be outlayed for Egypt 
during fiscal year 2005 shall be transferred to an interest 
bearing account for Egypt in the Federal Reserve Bank of New 
York within 30 days of enactment of this Act. The Committee is 
convinced that continued military cooperation between Egypt and 
the United States remains in the national security interests of 
both countries.

                           THE BALTIC STATES

    The Committee strongly supports at least the President's 
budget request of $15,500,000 for Estonia, Latvia, and 
Lithuania. Previous years' funding has significantly supported 
the commendable efforts of these countries to attain Western 
military standards and to improve their capacities to 
contribute to international security through the provision of 
peacekeepers to international peacekeeping missions. These 
democratic nations also strongly supported the international 
coalition in Operation Iraqi Freedom.

                         ARMENIA AND AZERBAIJAN

    The Committee is concerned about the funding disparity in 
the President's budget request for Armenia and Azerbaijan. The 
Committee directs that $5,000,000 be provided for each country, 
the same levels as allocated in fiscal year 2003. In addition, 
the Committee supports IMET assistance levels of $750,000 for 
both countries as requested by the President. With regard to 
funding for Armenia, the Committee expects the Department of 
Defense will be provided with the opportunity to perform a 
needs assessment of Armenia's armed services in order to ensure 
an effective military assistance program and recommends that 
such an assessment be initiated prior to the obligation of 
funds for fiscal year 2005. The Committee requests that the 
Department of State and the Department of Defense consult with 
the Committees on Appropriations as they develop future funding 
needs for Armenia and Azerbaijan.

                        ADMINISTRATIVE EXPENSES

    The Committee has recommended a limitation on 
administrative expenses of $40,500,000. This level is 
consistent with the budget request for the Defense Security 
Cooperation Agency (DSCA).

                  FOREIGN MILITARY FINANCING SURCHARGE

    The Committee has included a limitation on Foreign Military 
Financing operating costs of $367,000,000. This limitation may 
be waived pursuant to the regular notification procedures of 
the Committees on Appropriations. This is $6,000,000 more than 
the fiscal year 2004 level and the same as the request.

                          FMF EXPENDITURE RATE

    The Committee continues prior year language that requires 
that Foreign Military Financing funds be expended at the 
minimum rate necessary to make timely payments for defense 
articles and services. In addition, it continues language 
providing that such funds shall be obligated upon apportionment 
in order to allow for the orderly execution of program funds.

                         PROCUREMENT AGREEMENTS

    The Committee has continued prior year language requiring 
recipients of Foreign Military Financing grants to sign 
agreements with the United States prior to using FMF funds to 
finance the procurement of any item not sold by the United 
States under the Arms Export Control Act.

                              PROHIBITIONS

    The Committee has included bill language prohibiting 
military assistance to Indonesia, Guatemala, and Sudan. The 
Administration did not request FMF appropriations for these 
nations for fiscal year 2005.

                                 UGANDA

    As in fiscal year 2004, the Committee recommends that up to 
$2,000,000 in FMF funds be used to assist the Government of 
Uganda with counter-terrorism efforts. This assistance would be 
used to provide surveillance capabilities and border security. 
This recommendation assumes continued cooperation with United 
Nations effort to end conflicts in the Democratic Republic of 
Congo.

                        Peacekeeping Operations





Fiscal year 2004 level................................       $74,458,000
Emergency supplemental funding........................        50,000,000
Fiscal year 2005 request..............................       104,000,000
Committee recommendation..............................       104,000,000


    The Committee recommends $104,000,000 for voluntary 
contributions for international peacekeeping operations. This 
amount is $29,542,000 above the level provided in fiscal year 
2004, excluding emergency wartime supplemental appropriations, 
and is the same as the President's request.

               TITLE IV--MULTILATERAL ECONOMIC ASSISTANCE


                  International Financial Institutions


                      Global Environment Facility





Fiscal year 2004 level................................      $138,418,484
Fiscal year 2005 request..............................       120,677,734
Committee recommendation..............................       107,500,000


    The Committee recommends $107,500,000 for the Global 
Environment Facility (GEF), administered by the World Bank for 
the entire scheduled United States annual payment to the third 
replenishment of GEF. The recommendation is $13,177,734 below 
the request and $30,918,484 less than the amount enacted for 
2004.

       Contribution to the International Development Association





Fiscal year 2004 level................................      $907,812,120
Fiscal year 2005 request..............................     1,061,309,801
Committee recommendation..............................       850,000,000


    The Committee is providing $850,000,000 for the entire 
regularly scheduled United States contribution to the 
International Development Association (IDA), $211,309,801 less 
than the request and a $57,812,120 decrease from the 2004 
enacted level. The recommended level is intended for the second 
of three payments under the United States commitment to the 
thirteenth replenishment of IDA.
    Due to the Committee's restricted budget allocation, 
combined with the significant funding increases for the 
Administration's other priorities, the Committee is unable to 
provide an additional $200,000,000 for the IDA incentive 
contribution, albeit without prejudice. The Board of the World 
Bank has approved an external audit of IDA's results in meeting 
its performance benchmarks, as included in the 2004 
appropriations act.

              General Concerns About the World Bank Group


                      EXTRACTIVE INDUSTRIES REVIEW

    The Committee is concerned about possible implications of 
the World Bank's Extractive Industries Review that recommends 
the Bank cease funding oil and coal projects in the developing 
world. The Committee is concerned that the review may 
unnecessarily downgrade the role that extractive industries can 
play in increasing global economic growth, poverty reduction, 
and creating revenues for government programs, and directs the 
Secretary of Treasury to consult with the Committee before the 
World Bank adopts any of the findings of the review.

                                 GRANTS

    The Committee support the President's goal to designated 50 
percent of IDA resources for grants to the poorest nations for 
critical needs such as health and education spending. Given the 
unending cycle of unsustainable debt levels in the poorest 
countries, the Committee supports the Secretary of Treasury's 
position in the negotiations for the fourteenth replenishment 
of IDA. Grants programs are well-established in IDA and the 
African Development Fund (AfDF), and the Committee is 
encouraged by the new grant program in the Asian Development 
Fund (AsDF).

                               OBJECTIVES

    The Committee remains concerned about the expansion of the 
Bank's focus from development functions to humanitarian 
lending, health activities, cultural projects, disarmament 
activities, and post-conflict reconstruction. Without a focus, 
the Bank risks losing any comparative advantage in the 
developing world, will duplicate bilateral donor assistance, 
and reduce its effectiveness. The Committee continues to 
believe that the World Bank and other multilateral development 
banks should have a clear set of objectives with the top 
priority to raise the standard of living of people throughout 
the world. The Committee supports the Treasury Department's 
attempts to focus the World Bank's core objective on raising 
per capita income and economic growth.

                      AVAILABILITY OF INFORMATION

    The Committee again requests copies of all annual reports 
and information about the basic functions of each institution 
as they come available, including the European Bank for 
Reconstruction and Development and the International Fund for 
Agricultural Development. Future and continued support for the 
banks cannot be guaranteed unless future requests are justified 
by the Department of Treasury as well as the management of each 
individual institution.

                      ANTI-TERRORISM CERTIFICATION

    The Committee notes that USAID has recently begun to 
require all grantees to sign an Anti-Terrorism Certification 
(ATC), which requires grantees to certify that they have not 
and will not provide material support or resources to 
individuals or entities involved in terrorism. The Committee 
notes that the United States provides a significant portion of 
its foreign assistance through the World Bank and other 
International Financial Institutions, and urges the Treasury 
Department to explore the possibility of instituting a similar 
certification requirement for assistance provided by these 
institutions. The Committee directs the Secretary of the 
Treasury to report back no later than 90 days after the 
enactment of this Act on the progress made toward establishing 
such a requirement.

                           WORLD BANK IN IRAQ

    The Committee understands the World Bank Group pledged a 
large part of the total international assistance funds 
committed for Iraq. The Committee understands that of the 
amount pledged at the international donors' conference in 
Madrid last year, most of these funds remain to be disbursed.
    The Committee notes that in previous conflicts, the World 
Bank provided assistance at a faster rate. The Committee notes 
that the Coalition Provisional Authority has stationed hundreds 
of international staff in Iraq. It notes that despite one year 
and a large project pipeline for Iraq, the World Bank Group has 
yet to station a single full-time international staff member in 
Iraq. The Committee notes that the Bank took volunteers and 
stationed staff in many conflicts, including the siege of 
Sarajevo in Bosnia. The Committee expresses its disappointment 
at the slow pace of World Bank project disbursement in Iraq and 
the lack of deploying staff volunteers who in the past 
successfully led some of the Bank's most important country 
missions.
    The Committee directs the Secretary of the Treasury to 
report by January 1, 2005 on the disbursement of World Bank 
project loans and the deployment of international volunteer 
staff to man the bank's offices in Iraq.

Contribution to the Enterprise for the Americas Multilateral Investment 
                                  Fund





Fiscal year 2004 level................................       $24,852,500
Fiscal year 2005 request..............................        25,000,000
Committee recommendation..............................        25,000,000


    The Committee recommends an appropriation of $25,000,000 
for past due payments for the Multilateral Investment Fund 
(MIF). The recommendation is the same as the request and 
$147,500 above the 2004 enacted level.
    The Multilateral Investment Fund (MIF) is the major source 
of multilateral technical assistance grants for micro and small 
business development in Latin America and the Caribbean.

               Contribution to the Asian Development Fund





Fiscal year 2004 level................................      $143,568,916
Fiscal year 2005 request..............................       112,212,465
Committee recommendation..............................       112,212,465


    The Committee recommends an appropriation of $112,212,465 
for the concessional Asian Development Fund, an amount that is 
the same as the level requested and $31,356,451 less than the 
fiscal year 2004 enacted level. The Committee recommends that 
$103,000,000 be made available for the scheduled payment to the 
Asian Development Fund and $9,212,465 for past payments due.
    The Committee is providing the entire amount requested for 
the Asian Development Fund in light of United States efforts to 
reform the operations of the Asian Development Bank (AsDB). The 
Committee supports the continuing focus by the United States 
Executive Director on issues relating to personnel, 
procurement, host country contracting, inspection, 
transparency, and performance based allocation of concessional 
loans at the AsDB. The Committee commends the regular contact 
by the United States Executive Director and his efforts to keep 
the Committee members informed of AsDB issues.

              Contribution to the African Development Bank





Fiscal year 2004 level................................        $5,074,811
Fiscal year 2005 request..............................         5,100,000
Committee recommendation..............................         5,100,000


             (LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS)




Fiscal year 2004 level................................     ($79,609,817)
Fiscal year 2005 request..............................      (79,532,933)
Committee recommendation..............................      (79,532,933)


    The Committee recommends an appropriation of $5,100,000 for 
the African Development Bank for the scheduled United States 
contribution to the African Development Bank, an amount that is 
$25,189 above the amount provided in fiscal year 2004 and the 
same as the amount requested.

              Contribution to the African Development Fund





Fiscal year 2004 level................................      $112,059,923
Fiscal year 2005 request..............................       118,000,000
Committee recommendation..............................       118,000,000


    The recommendation for the concessional African Development 
Fund is $118,000,000, an amount that is $5,940,077 more than 
the amount provided in fiscal year 2004 and the same level as 
the request.

  Contribution to the European Bank for Reconstruction and Development





Fiscal year 2004 level................................       $35,222,068
Fiscal year 2005 request..............................        35,431,111
Committee recommendation..............................        35,431,111


             (LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS)




Fiscal year 2004 level................................    ($122,085,497)
Fiscal year 2005 request..............................     (121,996,662)
Committee recommendation..............................     (121,996,662)


    The Committee is recommending $35,431,111 for the European 
Bank for Reconstruction and Development (EBRD). This amount is 
the same as the President's request and $209,043 more than the 
appropriation provided in fiscal year 2004.
    The Committee recommendation includes a provision requiring 
that funds for the European Bank for Reconstruction and 
Development are subject to notification. The Committee directs 
the Secretary of the Treasury and the United States Executive 
Director to the EBRD to consult with the Committee as required 
by section 581 of the 2004 appropriations act.

  Contribution to the International Fund for Agricultural Development





Fiscal year 2004 level................................       $14,915,518
Fiscal year 2005 request..............................        15,000,000
Committee recommendation..............................        15,000,000


    The fiscal year 2005 recommendation for the International 
Fund for Reconstruction and Development (IFAD) is $15,004,042, 
the same as the request and $84,482 above the amount provided 
in fiscal year 2004.

                International Organizations and Programs





Fiscal year 2004 level................................      $319,752,000
Fiscal year 2005 request..............................       304,450,000
Committee recommendation..............................       323,450,000


    The Committee has recommended $323,450,000 for 
International Organizations and Programs. This is $3,698,000 
above the fiscal year 2004 level and $19,000,000 above the 
President's request. As in fiscal year 2004, funding for a 
grant to UNICEF is provided under this heading, and as in 
fiscal year 2004, funding for the World Food Program is 
provided from program funds. The United Nations Population Fund 
(UNFPA) is discussed in section 560.
    The Committee recommendation also continues prior year bill 
language prohibiting the use of funds for the International 
Atomic Energy Agency (IAEA). Funding for the IAEA is addressed 
elsewhere.

                   UNITED NATIONS DEVELOPMENT PROGRAM

    The Committee recommends a level not less than $107,000,000 
in International Organizations and Programs funding be set 
aside to support the United Nations Development Program (UNDP), 
$17,000,000 more than the request and $5,602,000 more than 
provided in 2004.

          UNITED NATIONS VOLUNTARY FUND FOR VICTIMS OF TORTURE

    The Committee supports not less than $7,000,000 for the 
United States contribution to the United Nations Voluntary Fund 
for Victims of Torture as authorized in the Torture Victims 
Relief Reauthorization Act of 2003. The Committee urges the 
Department of State to encourage other governments to increase 
their contributions to the Fund and report on implementation of 
this recommendation not later than 60 days after enactment of 
this Act.

                     UNITED NATIONS CHILDREN'S FUND

    The Committee recommends a level not less than $125,000,000 
in funds provided under this heading for the United Nation's 
Children's Fund (UNICEF), a level $5,000,000 more than the 
request and $5,708,000 more than the level provided in 2004.

               UNITED NATIONS DEVELOPMENT FUND FOR WOMEN

    The Committee supports a total of $3,000,000 for the United 
Nations Development Fund for Women (UNIFEM) including a 
$2,000,000 contribution to the Fund and a $1,000,000 first time 
contribution to the Trust Fund in Support of Actions to 
Eliminate Violence Against Women. This level is $2,000,000 
above the request and $2,006,000 above the level provided in 
the 2004 act.

                      TITLE V--GENERAL PROVISIONS

    The Committee recommends that 33 of the general provisions 
carried in the fiscal year 2004 Act be deleted. These 
provisions (sections 502, 525, 531, 536, 555, 556, 557, 558, 
560, 568, 569, 576, 577, 578, 580, 581, 582, 583, 584, 586, 
587, 589, 590, 591, 592, 593, 594, 595, 596, 598, 599A, 599B, 
and 599C) are either addressed elsewhere in permanent law, have 
been considered by the appropriate authorizing committee, or 
are no longer necessary.
    The Committee recommends the following new and revised 
general provisions.
    Sec. 505, ``Limitation on Representational Allowances'' is 
the same as the 2004 Act but is modified by increasing the 
levels of entertainment expenses and representation allowances 
under the heading ``Foreign Military Financing Program'', 
``International Military Education and Training'', the ``Inter-
American Foundation'', and the ``Trade and Development 
Agency''.
    Sec. 506, ``Prohibition on Taxation of United States 
Assistance'' is modified by deleting subsection (h) of the 2004 
Act. This subsection was a one-time provision pertaining to a 
prior year appropriations act.
    Sec. 511, ``Availability of Funds'' is revised to extend 
the availability of funds under chapter 6, 8, and 9 of part II 
of the Foreign Assistance Act of 1961.
    Sec. 517, ``Independent States of the Former Soviet Union'' 
is modified by moving subsection (f) to section 530 of this 
Act.
    Sec. 520, ``Special Notification Requirements'' is modified 
to delete Pakistan, Cambodia and the Democratic Republic of 
Congo.
    Sec. 522, ``Child Survival and Health Activities'' is 
revised by deleting the requirement that $432,000,000 shall be 
made available for family planning/reproductive health.
    Sec. 523, ``Afghanistan'' is modified by deleting the 
entire section except the amount specified for Afghanistan; 
limiting the scope of the provision to titles II and III of 
this Act; and by adding new language that specifies that 
$60,000,000 of the funds appropriated for Afghanistan for 
fiscal year 2005 should be made available for programs for 
women and girls.
    Sec. 525, ``The Global Fund to Fight AIDS, Tuberculosis and 
Malaria'' is a new general provision conditioning a 
contribution to the Global Fund on a certification by the 
Secretary of State that the Global Fund is taking certain steps 
to improve and strengthen its operations. Further explanation 
on this section is included under the heading ``Child Survival 
and Health Programs Fund''.
    Sec. 526, ``Democracy Programs'' is modified by retaining 
language from the 2004 Act referring to the support United 
States Executive Directors to each international financial 
institution should provide for projects in Tibet; by including 
modified language recommending $4,000,000 for activities in 
Tibet through nongovernmental organizations; by recommending 
$250,000 for human rights and democracy programs for Tibetans; 
and by recommending up to $27,000,000 for the Human Rights and 
Democracy Fund, including language similar to the 2004 Act that 
authorizes up to $1,500,000 for grants through nongovernmental 
organizations and individuals to support the advancement of 
democracy and human rights in Iran and Syria, which may be 
provided through the National Endowment for Democracy.
    Sec. 528, ``Debt-For-Development'' is modified to make 
interest earned subject to notification.
    Sec. 530, ``Enterprise Fund Restrictions'' is the same as 
the 2004 Act but includes a new subsection (b) that is similar 
to subsection (f) of section 517 of the 2004 Act but is 
modified by applying the provision to funds to those made 
available in this Act.
    Sec. 531, ``Sudan'' is a new general provision that makes 
available $311,000,000 for Sudan and prohibits this funding 
from being used to support the government in Khartoum until it 
takes specific steps to resolve the ongoing crisis in Darfur.
    Sec. 534, ``Special Authorities'' is revised by: in 
subsection (a) deleting Lebanon; deleting subsection (f) of the 
2004 Act, ``Shipment of Humanitarian Assistance''; deleting 
subsection (j) of the 2004 Act, ``Sudan''; and deleting 
subsection (k) of the 2004 Act, ``Programs''.
    Sec. 554, ``Cambodia'' is modified by deleting all after 
the first subsection in the 2004 Act.
    Sec. 559, ``West Bank and Gaza Program'' is modified by: in 
subsection (b) including a specification that entities referred 
to in the 2004 Act as private, government, or educational; and 
in subsection (b) directing the Secretary of State to terminate 
assistance to any individual, entity, or educational 
institution found to be involved in or advocating terrorist 
activity.
    Sec. 560, ``Contributions to the United Nations Population 
Fund'' is modified to include only funds from under the heading 
``International Organizations and Programs''.
    Sec. 563, ``Funding for Serbia'' is modified in subsection 
(d) to include a waiver for assistance to promote democracy 
through nongovernmental organizations.
    Sec. 567, ``Basic Education'' is modified to establish a 
minimum level within title II of this Act for basic education 
programs of $400,000,000.
    Sec. 568, ``Reconciliation Programs'' is modified by 
changing the level of assistance provided to $12,000,000.
    Sec. 569, ``Debt Restructuring Authority'' is a new general 
provision that enables the United States to lead a multilateral 
effort to forgive a significant portion of Iraq's official 
debt, subject to consultation and notification.
    Sec. 570, ``Trade Capacity Building'' is modified to 
establish a minimum level of $517,000,000 from certain accounts 
of this Act.
    Sec. 571, ``Excess Defense Articles for Central and South 
European Countries and Certain Other Countries'' is a new 
general provision but the same as the 2003 Act and authorizes 
excess defense articles for Central and South European 
Countries.
    Sec. 572, ``Cuba'' is the same general provision as 
included in the House-Reported Foreign Operations, Export 
Financing and Related Programs Bill, 2004 (H.R. 2800) and 
prohibits counternarcotics assistance in this Act to the 
Government of Cuba.
    Sec. 573, ``Office of the Inspector General of the 
Coalition Provisional Authority'' is a new general provision 
that reconstitutes the Coalition Provisional Authority 
Inspector General as a separate office, the Inspector General 
for Iraq Reconstruction Programs, under the authority of the 
Secretary of State. Funding previously appropriated to the CPA 
Inspector General remains available only to the reconstituted 
Inspector General.
    Sec. 574, ``Oversight of Iraq Reconstruction'' is a new 
general provision that modifies reporting and notification 
requirements for the Iraq Reconstruction Program.
    Sec. 575, ``Indonesia'' is modified to condition the 
availability of funds under the heading ``International 
Military Education and Training'' for Indonesia.

               PROVISIONS RETAINED FROM FISCAL YEAR 2004

    The following general provisions from the fiscal year 2004 
Act are retained in the fiscal year 2005 Act unchanged except 
for technical corrections, references to fiscal year 2005, and 
new section numbers where appropriate:
    Sec. 501. Compensation for United States Executive 
Directors to International Financial Institutions.
    Sec. 502. Restrictions on Voluntary Contributions to United 
Nations Agencies.
    Sec. 503. Limitation on Residence Expenses.
    Sec. 504. Limitation on Expenses.
    Sec. 507. Prohibition Against Direct Funding for Certain 
Countries.
    Sec. 508. Military Coups.
    Sec. 509. Transfers.
    Sec. 510. Commercial Leasing of Defense Articles.
    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. 518. Prohibition on Funding for Abortions and 
Involuntary Sterilization.
    Sec. 519. Export Financing Transfer Authorities.
    Sec. 521. Definition of Program, Project, and Activity.
    Sec. 524. Notification of Excess Defense Equipment.
    Sec. 527. Prohibition on Bilateral Assistance to Terrorist 
Countries.
    Sec. 529. Separate Accounts.
    Sec. 532. Authorities for the Peace Corps, Inter-American 
Foundation and African Development Foundation.
    Sec. 533. Impact on Jobs in the United States.
    Sec. 535. Arab League Boycott of Israel.
    Sec. 536. Eligibility for Assistance.
    Sec. 537. Reservations of Funds.
    Sec. 538. Ceilings and Earmarks.
    Sec. 539. Prohibition on Publicity and Propaganda.
    Sec. 540. Prohibition of Payments to United Nations 
Members.
    Sec. 541. Nongovernmental Organizations--Documentation.
    Sec. 542. Prohibition on Assistance to Foreign Governments 
that Export Lethal Military Equipment to Countries Supporting 
International Terrorism.
    Sec. 543. Withholding of Assistance for Parking Fines Owed 
by Foreign Governments.
    Sec. 544. Limitation on Assistance for the PLO for the West 
Bank and Gaza.
    Sec. 545. War Crimes Tribunals Drawdown.
    Sec. 546. Landmines.
    Sec. 547. Restrictions Concerning the Palestinian 
Authority.
    Sec. 548. Prohibition of Payment of Certain Expenses.
    Sec. 549. Haiti.
    Sec. 550. Limitation on Assistance to the Palestinian 
Authority.
    Sec. 551. Limitation on Assistance to Security Forces.
    Sec. 552. Foreign Military Training Report.
    Sec. 553. Authorization Requirement.
    Sec. 555. Palestinian Statehood.
    Sec. 556. Colombia.
    Sec. 557. Illegal Armed Groups.
    Sec. 558. Prohibition on Assistance to the Palestinian 
Broadcasting Corporation.
    Sec. 561. War Criminals.
    Sec. 562. User Fees.
    Sec. 564. Community Based Police Assistance.
    Sec. 565. Special Debt Relief for the Poorest.
    Sec. 566. Authority to Engage in Debt Buybacks or Sales.

              House of Representatives Report Requirements


                           Transfer of Funds

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following is submitted describing 
the transfer of funds provided in the accompanying bill.
    Under ``Child Survival and Health Programs'' up to 
$6,000,000 may be transferred to and merged with funds under 
the heading ``Operating Expenses of the United States Agency 
for International Development.''
    Under ``Development Credit Authority'' up to $21,000,000 is 
authorized to be transferred to the account from a variety of 
sources. In addition, $8,000,000 may be transferred to and 
merged with funds appropriated under the heading ``Operating 
Expenses of the United States Agency for International 
Development''.
    Under ``Foreign Military Financing'', up to $150,000,000 
for assistance for Pakistan may be derived by transfer from 
unobligated balances of funds appropriated under the headings 
``Economic Support Fund'' and ``Foreign Military Financing'' in 
prior appropriations Acts and not otherwise designated in those 
Acts for a specific country, use, or purpose.

                              RESCISSIONS

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

                        Constitutional Authority

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

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

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

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

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

               Changes in the Application of Existing Law

    Pursuant to clause 3(f), rule XIII of the Rules of the 
House of Representatives, the following statements are 
submitted describing the effects of provisions in the 
accompanying bill which directly or indirectly change the 
application of existing law. Most of the language has been 
provided in previous measures including supplementals for the 
departments and agencies carried in the accompanying bill.
    1. The bill contains appropriations for a number of items 
for which authorizations for fiscal year 2005 have not yet been 
enacted. The bill allows funds appropriated in the bill to be 
obligated in the absence of a prior authorization of 
appropriations.
    2. The bill provides that a few of the appropriations shall 
remain available for obligation beyond the current fiscal year. 
In all cases it is deemed desirable to carry such language in 
order to provide for orderly administration of such programs 
and effective use of funds.
    3. The bill contains a number of general provisions and 
other language that have been carried in the bill in past 
years.
    4. Under ``Export-Import Bank of the United States'', 
authority is provided for subsection (a) of section 117 to 
remain in effect until October 1, 2005.
    5. Under ``Overseas Private Investment Corporation, Program 
Account'', funds are appropriated for the cost of direct and 
guaranteed loans, to be derived by transfer from the Overseas 
Private Investment Corporation Noncredit Account. Such costs 
shall be as defined in section 502 of the Congressional Budget 
Act of 1974 and may be used for direct loan and loan guaranty 
commitments incurred or made during fiscal years 2005 and 2006. 
These funds are available for obligation until 2013 and 2014, 
depending on the initial date of obligation.
    6. Under ``Child Survival and Health Programs Fund'' 
language is provided that indicates how the funds should be 
allocated among various activities; not to exceed $250,000, in 
addition to funds otherwise available for such purposes, may be 
used to monitor and provide oversight of programs for child 
survival, maternal and family planning/reproductive health, and 
infectious disease; up to $65,000,000 is authorized to be made 
available for a contribution to The Vaccine Fund; and language 
is included that provides that not less than $400,000,000 shall 
be made available for a contribution to the Global Fund to 
Fight AIDS, Tuberculosis and Malaria, and shall be expended at 
the minimum rate necessary to make timely payments for projects 
and activities.
    7. Under ``Development Assistance'', language is provided 
that indicates how the funds should be allocated among various 
activities, including $194,000,000 for trade capacity building 
and $300,000,000 for basic education and language is included 
that provides not less than $15,000,000 shall be available for 
women's leadership programs; and not to exceed $32,500, in 
addition to other funds made available, may be used for 
oversight of programs for orphaned children and victims of war.
    8. Under ``Development Credit Authority'', authorized 
transfers, when added to the funds transferred pursuant to the 
authority contained under this heading in Public Law 107-115, 
shall not exceed $21,000,000.
    9. Under ``Capital Investment Fund'', funds may be made 
available for USAID's contribution to the Capital Cost Sharing 
Program only if all other agencies who have agreed to 
participate are making contributions.
    10. Under ``Economic Support Fund'', not less than 
$360,000,000 is made available only for Israel and is required 
to be disbursed as a cash grant within 30 days of enactment of 
this Act; and not less than $535,000,000 is made available only 
for Egypt; $250,000,000 should be made available only for 
assistance for Jordan; not less than $35,000,000 should be 
available for Lebanon of which not less than $4,000,000 should 
be available for American educational institutions for 
scholarships and other programs; $22,000,000 should be made 
available for Timor/Leste; $50,000,000 should be made available 
for Haiti; and not less than $13,500,000 should be available 
for Cyprus; and not to exceed $200,000,000 may be used for debt 
relief for Pakistan.
    11. Under ``Assistance for the Independent States of the 
Former Soviet Union'', not less than $57,000,000 should be made 
available for assistance for child survival and health 
activities and not less than $65,000,000 should be made 
available for Armenia.
    12. Under ``Millennium Challenge Corporation'', not more 
than $30,000,000 may be made available for administrative 
expenses; funds may be available only after the submission of a 
Congressional Budget Justification; funding for countries under 
section 616 of the authorization act (the so-called ``threshold 
countries'') may only be available after subsequent information 
is provided to the Committee about the type of assistance 
provided; and funding for MCC compacts may only be made 
available if the compact is fully funded at the time of 
obligation.
    13. Under ``Global HIV/AIDS Initiative'', not more than 
$8,818,000 may be made available for administrative expenses; 
and not less than $26,000,000 of funds under this heading 
should be made available as a contribution to the International 
AIDS Vaccine Initiative.
    14. Under ``International Narcotics Control and Law 
Enforcement'', up to $10,000,000 should be made available for 
demand reduction programs; and a limitation of $26,117,000 is 
placed on administrative expenses.
    15. Under ``Andean Counterdrug Initiative'', section 482(b) 
of the Foreign Assistance Act is waived, subject to 
notification; in addition, a limitation of $16,285,000 is 
placed on administrative expenses of the Department of State, 
and not more than $4,500,000 may be available for 
administrative expenses of USAID.
    16. Under ``Nonproliferation, Anti-terrorism, Demining, and 
Related Programs'', a limitation of $30,000,000 is placed on 
funding for the Nonproliferation and Disarmament Fund.
    17. Under ``Debt Restructuring'' funds may not be paid to 
the Heavily Indebted Poor Countries Trust Fund for the benefit 
of any country accepting new loans from the international 
financial institutions between its decision point and 
completion point.
    18. Under ``Foreign Military Financing Program'', not less 
than $2,220,000,000 is appropriated for Israel, of which not 
less than $580,000,000 shall be available for the procurement 
in Israel of defense articles and defense services and that all 
funds for Israel must be disbursed within 30 days of enactment 
of this Act; $1,300,000,000 shall be made available for grants 
only for Egypt; up to $150,000,000 for Pakistan may be derived 
from unobligated balances from prior appropriations acts; a 
limitation of $40,500,000 is provided for administrative 
expenses; and a limitation of $567,000,000 from certain other 
funds may be obligated for expenses incurred pursuant to 
section 43(b) of the Arms Export Control Act.
    19. Under ``General Provisions'':
    Sec. 505, ``Limitation on Representational Allowances'' is 
modified by increasing the levels of entertainment expenses and 
representation allowances under the heading ``Foreign Military 
Financing Program'', ``International Military Education and 
Training'', the ``Inter-American Foundation'', and the ``Trade 
and Development Agency''.
    Sec. 506, ``Prohibition on Taxation of United States 
Assistance'' is modified by deleting subsection (h) of the 2004 
Act. This subsection was a one-time provision pertaining to a 
prior year appropriations act.
    Sec. 511, ``Availability of Funds'' is revised to extend 
the availability of funds under chapter 6, 8, and 9 of part II 
of the Foreign Assistance Act of 1961.
    Sec. 517, ``Independent States of the Former Soviet Union'' 
is modified by moving subsection (f) to section 530, 
``Enterprise Fund Restrictions''.
    Sec. 520, ``Special Notification Requirements'' is modified 
to delete Pakistan, Cambodia and the Democratic Republic of 
Congo.
    Sec. 522, ``Child Survival and Health Activities'' is 
revised by deleting the requirement that $432,000,000 shall be 
made available for family planning/reproductive health.
    Sec. 523, ``Afghanistan'' is modified by deleting the 
entire section except the amount specified for Afghanistan 
($977,000,000); limiting the scope of the provision to titles 
II and III of this Act; and specifying that $60,000,000 should 
be available in fiscal year 2005 for Afghan women and girls.
    Sec. 525, ``The Global Fund to Fight AIDS, Tuberculosis and 
Malaria'' is a new general provision conditioning a 
contribution to the Global Fund.
    Sec. 526, ``Democracy Programs'' is modified by retaining 
language from the 2004 Act referring to the support United 
States Executive Directors to each international financial 
institution should provide for projects in Tibet; by including 
modified language recommending $4,000,000 for activities in 
Tibet through nongovernmental organizations; by recommending 
$250,000 for human rights and democracy programs for Tibetans; 
and by recommending up to $27,000,000 for the Human Rights and 
Democracy Fund, including up to $1,200,000 for Reagan/Fascell 
Fellows and including language similar to the 2004 Act that 
authorizes up to $1,500,000 for grants through nongovernmental 
organizations and individuals to support the advancement of 
democracy and human rights in Iran and Syria, which may be 
provided through the National Endowment for Democracy.
    Sec. 528, ``Debt-For-Development'' is modified to make 
interest earned subject to notification.
    Sec. 530, ``Enterprise Fund Restrictions'' is the same as 
the 2004 Act but includes a new subsection (b) that is similar 
to subsection (f) of section 517 of the 2004 Act but is 
modified by limiting funds to those made available in this Act.
    Sec. 531, ``Sudan'' is a new general provision that 
designates $311,000,000 for Sudan and prohibits this funding 
from being used to support the government in Khartoum until it 
takes specific steps to resolve the ongoing crisis in Darfur.
    Sec. 534, ``Special Authorities'' is revised by: in 
subsection (a) deleting Lebanon; deleting subsection (f) of the 
2004 Act, ``Shipment of Humanitarian Assistance''; deleting 
subsection (j) of the 2004 Act, ``Sudan''; and deleting 
subsection (k) of the 2004 Act, ``Programs''.
    Sec. 554, ``Cambodia'' is modified by deleting all after 
the first subsection in the 2004 Act.
    Sec. 559, ``West Bank and Gaza Program'' is modified by: in 
subsection (b) including a specification that broadens the 
entities referred to in the 2004 Act to include private, 
government, or educational institutions; and in subsection (b) 
directing the Secretary of State to terminate assistance to any 
individual, entity, or educational institution found to be 
involved in or advocating terrorist activity.
    Sec. 560, ``Contributions to the United Nations Population 
Fund'' is similar to that in the 2004 Act, but specifies the 
level of funds ($25,000,000) from under the heading 
``International Organizations and Programs''.
    Sec. 563, ``Funding for Serbia'' is modified in subsection 
(d) to include a waiver for assistance to promote democracy 
through nongovernmental organizations.
    Sec. 567, ``Basic Education'' states that not less than 
$400,000,000 shall be made available for basic education.
    Sec. 568, ``Reconciliation Programs'' is modified by 
changing the level of assistance provided to $12,000,000.
    Sec. 569, ``Debt Restructuring Authority'' is a new general 
provision that enables the U.S. to lead a multilateral effort 
to forgive a significant portion of Iraq's official debt, 
subject to consultation and notification.
    Sec. 570, ``Trade Capacity Building'' is modified to 
establish a minimum level of $517,000,000 from certain accounts 
of this Act.
    Sec. 571, ``Excess Defense Articles for Central and South 
European Countries and Certain Other Countries'' is a new 
general provision but similar to a provision in the 2003 Act 
and authorizes excess defense articles for Central and South 
European Countries.
    Sec. 572, ``Cuba'' is the same general provision as 
included in the House-reported Foreign Operations, Export 
Financing and Related Programs Bill, 2004 (H.R. 2800) and 
prohibits counternarcotics assistance in this Act to the 
Government of Cuba.
    Sec. 573, ``Office of the Inspector General of the 
Coalition Provisional Authority'' is a new general provision 
that reconstitutes the Coalition Provisional Authority 
Inspector General as a separate office, the Inspector General 
for Iraq Reconstruction, within the State Department, under the 
authority of the Secretary of State.
    Sec. 574, ``Oversight of Iraq Reconstruction'' is a new 
general provision that modifies reporting and notification 
requirements for the Iraq Reconstruction program.
    Sec. 575, ``Indonesia'' is modified to condition the 
availability of funds under the heading ``International 
Military Education and Training'' for Indonesia.

                  Appropriations Not Authorized by Law

    Pursuant to clause 3(f)(1) of rule XIII of the Rules of the 
House of Representatives, the following table lists the 
appropriations in the accompanying bill which, in whole or in 
part, are not authorized by law:

----------------------------------------------------------------------------------------------------------------
                                                                           Appropriations in
                                       Last year         Authorization       last year of      Appropriations in
                                      authorized             level           authorization         this bill
----------------------------------------------------------------------------------------------------------------
Child Survival and Health         Population (1987);  Population          Population          $1,648,500,000
 Programs Fund (See note below).   Health and          ($290,000,000);     ($234,625,000);     (includes
                                   Disease             Health and          Health and          $375,500,000 for
                                   Prevention          Disease             Disease             population).
                                   (1987); Child       Prevention          Prevention
                                   Survival Fund       ($180,000,000);     ($166,762,500);
                                   (1987).             Child Survival      Child Survival
                                                       Fund                Fund
                                                       ($75,000,000).      ($75,000,000).
Development Assistance (See note  Agriculture         Agriculture         Agriculture         $1,429,000,000
 below).                           (1987); Education   ($760,000,000);     ($639,613,000);     (includes
                                   (1987); Energy      Education           Education           $300,000,000 for
                                   and selected        ($180,000,000);     ($155,000,000);     basic education;
                                   development         Energy and          Energy and          other programs
                                   activities (1987).  selected            selected            difficult to
                                                       development         development         determine due to
                                                       activities          activities          changing
                                                       ($207,000,000).     ($149,990,000).     definitions of
                                                                                               programs since
                                                                                               last authorized).
International Disaster and        1987..............  $25,000,000.......  $70,000,000.......  $355,500,000.
 Famine Assistance.
Transition initiatives..........  None (same            ................    ................  $47,500,000.
                                   authorities as
                                   international
                                   disaster
                                   assistance).
Development credit authority....  None..............  ..................  ..................  ($21,000,000).
Development credit authority      None..............  ..................  ..................  $8,000,000.
 administrative expenses.
Payment to the Foreign Service    None; mandatory     ..................  ..................  $42,500,000.
 Retirement and Disability Fund.   item.
Operating expenses of the United  1987..............  $387,000,000......  $340,600,000......  $618,000,000.
 States Agency for International
 Development.
Capital Investment Fund.........  None..............  ..................  ..................  $64,800,000.
Operating Expenses of the United  1987..............  $21,750,000.......  $21,000,000.......  $35,000,000.
 States Agency for International
 Development Inspector General.
Economic Support Fund...........  1987..............  $3,800,000,000....  $3,555,000,000....  $2,450,000,000.
International Fund for Ireland..  1988..............  $35,000,000.......  $35,000,000.......  $18,500,000.
Assistance for Eastern Europe     None..............  ..................  ..................  $375,000,000.
 and the Baltic States (See note
 below).
Assistance for the Independent    1993..............  $410,000,000......  $417,000,000......  $550,000,000.
 States of the Former Soviet
 Union.
Inter-American Foundation.......  1987..............  $11,969,000.......  $11,800,000.......  $16,238,000.
African Development Foundation..  1987..............  $3,872,000........  $6,500,000........  $18,579,000.
Peace Corps.....................  2003..............  $365,000,000......  $295,069,000......  $330,000,000.
International Narcotics Control   1994..............  $171,500,000......  $100,000,000......  $328,820,000.
 and Law Enforcement.
Andean Counterdrug Initiative...  None..............  ..................  ..................  $731,000,000.
Migration and Refugee Assistance  2001..............  $750,000,000......  $700,000,000......  $756,000,000.
Nonproliferation, Anti-           None..............  ..................  ..................  $382,000,000.
 terrorism, demining and related
 programs (See note below).
International Affairs Technical   1999..............  $5,000,000........  $1,500,000........  $19,000,000.
 Assistance.
Debt restructuring..............  2001..............  $435,000,000......  $448,000,000        $105,000,000
                                                                           (included up to     (Note: section
                                                                           $435,000,000 for    581 includes
                                                                           Heavily Indebted    additional
                                                                           Poor Countries      authorization for
                                                                           (HIPC) debt         HIPC debt relief,
                                                                           relief;             consistent with
                                                                           additional sums     appropriations
                                                                           for unauthorized    recommendation
                                                                           bilateral debt      for this
                                                                           relief).            account).
International Military Education  2003..............  $85,000,000.......  $79,480,000.......  $89,730,000.
 and Training.
Foreign Military Financing        2003..............  $4,107,000,000....  $6,104,632,000....  $4,777,500,000.
 Program.
Peacekeeping operations.........  1999..............  $83,000,000.......  $76,500,000.......  $104,000,000.
International Organizations and   2001..............  Such sums as may    $186,000,000......  $323,450,000.
 Programs.                                             be necessary.
----------------------------------------------------------------------------------------------------------------
Note.--Programs recommended herein under ``Child Survival and Health Programs Fund'' and ``Development
  Assistance'' were last authorized under a different account structure than that recommended in this bill; the
  account structure included a number of functional accounts, as described above.
Note.--Programs recommended herein under ``Support for Eastern Europe and the Baltic States'' were last
  authorized in the Support for East European Democracy (SEED) Act of 1989; however, these funds were authorized
  for discrete programs and not for the account as a whole. In fiscal year 1991, the first general
  appropriations act after enactment of the SEED Act included $369,675,000 for this account.
Note.--Programs recommended herein under ``Nonproliferation, Anti-terrorism, Demining, and Related Programs''
  include some major programs for which authorizations of appropriations were provided for fiscal year 2002;
  these programs include $73,000,000 authorized for anti-terrorism assistance and $142,000,000 authorized for
  nonproliferation activities. In addition, some programs now in this account were previously in accounts which
  had authorizations of appropriations in prior years.

                   Comparison With Budget Resolution

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

                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 302(b) allocation--           This bill--
                                                             ---------------------------------------------------
                                                                 Budget                    Budget
                                                               authority     Outlays     authority     Outlays
----------------------------------------------------------------------------------------------------------------
Discretionary...............................................       19,386       26,735       19,386       26,699
Mandatory...................................................           43           43           43           43
----------------------------------------------------------------------------------------------------------------

                      Five-Year Outlay Projections

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





Fiscal year 2004......................................            $6,929
Fiscal year 2005......................................             6,683
Fiscal year 2006......................................             3,006
Fiscal year 2007......................................             1,339
Fiscal year 2008 and future years.....................             1,148


         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the following is a statement of 
general performance goals and objectives for which this measure 
authorizes funding:
    The Committee on Appropriations considers program 
performance, including a program's success in developing and 
attaining outcome-related goals and objectives, in developing 
funding recommendations.

               Assistance to State and Local Governments

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

          Compliance With Rule XIII, Cl. 3(e) (Ramseyer Rule)

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                        ACT OF OCTOBER 27, 2001


                          (Public Law 107-57)

   AN ACT To authorize the President to exercise waivers of foreign 
assistance restrictions with respect to Pakistan through September 30, 
2003, and for other purposes.

           *       *       *       *       *       *       *


SECTION 1. EXEMPTIONS AND WAIVER OF APPROPRIATIONS ACT 
            PROHIBITIONS WITH RESPECT TO PAKISTAN.
  (a) * * *

           *       *       *       *       *       *       *

  (b) Fiscal Year [2004] 2005.--
          (1) Waiver.--The President is authorized to waive, 
        with respect to Pakistan, any provision of the foreign 
        operations, export financing, and related programs 
        appropriations Act for fiscal year [2004] 2005 that 
        prohibits direct assistance to a country whose duly 
        elected head of government was deposed by decree or 
        military coup, if the President determines and 
        certifies to the appropriate congressional committees 
        that such waiver--
                  (A) * * *

           *       *       *       *       *       *       *

SEC. 3. EXEMPTION OF PAKISTAN FROM FOREIGN ASSISTANCE 
            PROHIBITIONS RELATING TO FOREIGN COUNTRY 
            LOAN DEFAULTS.
  The following provisions of law shall not apply with respect 
to Pakistan:
          (1) * * *
          (2) Such provision of the annual foreign operations, 
        export financing, and related programs appropriations 
        Acts for fiscal years 2002, 2003, [and 2004] 2004, and 
        2005, as are comparable to section 512 of the Foreign 
        Operations, Export Financing, and Related Programs 
        Appropriations Act, 2001 (Public Law 106-429; 114 Stat. 
        1900A-25).

           *       *       *       *       *       *       *


SEC. 6. TERMINATION DATE.

  Except as otherwise provided in section 1 or 3, the 
provisions of this Act shall terminate on October 1, [2004] 
2005.

           *       *       *       *       *       *       *


   SECTION 2207 OF THE EMERGENCY SUPPLEMENTAL APPROPRIATIONS ACT FOR 
    DEFENSE AND FOR THE RECONSTRUCTION OF IRAQ AND AFGHANISTAN, 2004

    Sec. 2207. (a) [The Director of the Office of Management 
and Budget, in consultation with the Administrator of the 
Coalition Provisional Authority (CPA) and the Committees on 
Appropriations,] The Secretary of State shall submit to the 
Committees on Appropriations not later than January 5, 2004 and 
prior to the initial obligation of funds appropriated by this 
Act under the heading ``Iraq Relief and Reconstruction Fund'' a 
report on the proposed uses of all funds under this heading on 
a project-by-project basis, for which the obligation of funds 
is anticipated during the 3 month period from such date, 
including estimates by the CPA of the costs required to 
complete each such project: Provided, That up to 20 percent of 
funds appropriated under such heading may be obligated before 
the submission of the report: Provided further, That in 
addition such report shall include the following:
          (1) * * *

           *       *       *       *       *       *       *

                          Full Committee Votes

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

                             ROLLCALL NO. 1

    Date: July 9, 2004.
    Measure: Foreign Operations, Export Financing, and Related 
Programs Appropriations Bill, FY 2005.
    Motion by: Mrs. Lowey.
    Description of motion: To allow the use of $25,000,000 for 
the United Nations Population Fund (UNFPA) for country programs 
in Afghanistan, Iraq, Jordan, Kenya, Pakistan, or Tanzania 
irrespective of a specified provision of the Act, which would 
otherwise make such funds unavailable, if such country programs 
were not found in violation of that provision of the Act.
    Results: Rejected; yeas 26, nays 32.
        Members Voting Yea            Members Voting Nay
Mr. Bishop                          Mr. Aderholt
Mr. Boyd                            Mr. Berry
Mr. Clyburn                         Mr. Bonilla
Mr. Cramer                          Mr. Crenshaw
Ms. DeLauro                         Mr. Cunningham
Mr. Dicks                           Mr. Doolittle
Mr. Edwards                         Mrs. Emerson
Mr. Farr                            Mr. Goode
Mr. Frelinghuysen                   Ms. Granger
Mr. Hoyer                           Mr. Hobson
Mr. Jackson                         Mr. Istook
Ms. Kaptur                          Mr. Kingston
Mr. Kennedy                         Mr. Knollenberg
Ms. Kilpatrick                      Mr. Kolbe
Mr. Kirk                            Mr. Latham
Mrs. Lowey                          Mr. Lewis
Mr. Moran                           Mr. Mollohan
Mr. Obey                            Mr. Nethercutt
Mr. Olver                           Mrs. Northup
Mr. Pastor                          Mr. Peterson
Mr. Price                           Mr. Regula
Mr. Rothman                         Mr. Rogers
Ms. Roybal-Allard                   Mr. Sherwood
Mr. Sabo                            Mr. Simpson
Mr. Serrano                         Mr. Tiahrt
Mr. Visclosky                       Mr. Vitter
                                    Mr. Walsh
                                    Mr. Wamp
                                    Mr. Weldon
                                    Mr. Wicker
                                    Mr. Wolf
                                    Mr. Young
                                    
                                    
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