[Senate Report 108-106]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 215
108th Congress                                                   Report
                                 SENATE
 1st Session                                                    108-106

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



 
      FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS 
                        APPROPRIATION BILL, 2004
                                _______
                                

                 July 17, 2003.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                    [To accompany S. 1426]

    The Committee on Appropriations to which was referred the 
bill (H.R. 0000), making appropriations for Foreign operations 
and related programs for the fiscal year ending September 30, 
2003, and for other purposes, reports the same to the Senate 
with an amendment and recommends that the bill as amended do 
pass. deg.
    The Committee on Appropriations reports the bill (S. 1426) 
making appropriations for Foreign Operations and related 
programs for the fiscal year ending September 30, 2004, and for 
other purposes, reports favorably thereon and recommends that 
the bill do pass.



Amounts in new budget authority

Fiscal year 2003 appropriations......................... $23,718,563,000
Fiscal year 2004 budget estimate........................  18,932,588,000
Amount of bill as reported to Senate....................  18,136,859,000
Bill as recommended to Senate compared to:
    2003 appropriations.................................  -5,581,704,000
    Budget estimate.....................................    -795,729,000



                            C O N T E N T S

                              ----------                              
                                                                   Page
Summary of Total Budget Authority in the Bill....................     4
Introduction.....................................................     4
Title I--Export and Investment Assistance:
    Export-Import Bank of the United States......................     5
    Overseas Private Investment Corporation......................     5
    Trade and Development Agency.................................     6
Title II--Bilateral Economic Assistance:
    Bilateral Assistance.........................................     7
    Child Survival and Health Programs Fund......................     7
    Development Assistance.......................................    12
    International Disaster Assistance............................    35
    Famine Fund..................................................    36
    Transition Initiatives.......................................    36
    Development Credit Authority.................................    36
    Payment to the Foreign Service Retirement and Disability Fund    36
    Operating Expenses of the United States Agency for 
      International Development..................................    36
    Capital Investment Fund......................................    37
    Operating Expenses of the Office of Inspector General........    37
    Other Bilateral Economic Assistance:
        Economic Support Fund....................................    37
        Global AIDS Initiative...................................    42
        Assistance for Eastern Europe and the Baltic States......    42
        Assistance for the Independent States of the Former 
          Soviet Union...........................................    43
    Independent Agencies:
        Inter-American Foundation................................    47
        African Development Foundation...........................    48
        Peace Corps..............................................    48
    Department of State:
        International Narcotics Control and Law Enforcement......    48
        Andean Counterdrug Initiative............................    49
        Migration and Refugee Assistance.........................    51
        Emergency Refugee and Migration Assistance Fund..........    52
        Nonproliferation, Antiterrorism, Demining, and Related 
          Programs...............................................    52
    Department of the Treasury:
        International Affairs Technical Training.................    54
        Debt Restructing.........................................    54
Title III--Millennium Challenge Assistance:
    Funds Appropriated to the President: Millenium Challenge 
      Assistance.................................................    56
Title IV--Military Assistance:
    International Military Education and Training................    57
    Foreign Military Financing...................................    57
    Peacekeeping Operations......................................    59
Title V--Multilateral Economic Assistance:
    International Financial Institutions Summary.................    60
    International Bank for Reconstruction and Development:
        Global Environment Facility..............................    61
        International Development Association....................    61
    Multilateral Investment Guarantee Agency.....................    61
    Inter-American Development Bank:
        Inter-American Investment Corporation....................    61
        Multilateral Investment Fund.............................    61
    Asian Development Bank: Asian Development Fund...............    61
    African Development Bank: African Development Fund...........    61
    European Bank for Reconstruction and Development:
        International Fund for Agricultural Development..........    62
        International Organizations and Programs.................    62
Title VI--General Provisions.....................................    63
Compliance With Paragraph 7, Rule XVI of the Standing Rules of 
  the Sen- 
  ate............................................................    66
Compliance With Paragraph 7(c), Rule XXVI of the Standing Rules 
  of the Senate..................................................    66
Compliance With Paragraph 12, Rule XXVI of the Standing Rules of 
  the 
  Senate.........................................................    67
Budget Impact Statement..........................................    68


                                 SUMMARY TABLE: AMOUNTS IN NEW BUDGET AUTHORITY
----------------------------------------------------------------------------------------------------------------
                                                                                                   Committee
                                                                                                recommendation
                                                                                Committee        compared with
                          Item                             Budget request    recommendation     budget estimate
                                                                                                increase (+) or
                                                                                                 decrease (-)
----------------------------------------------------------------------------------------------------------------
Export Assistance.......................................     -$103,020,000     -$115,220,000        -$12,200,000
Bilateral Economic Assistance...........................    12,565,580,000    11,877,929,000        -687,651,000
Military Assistance.....................................     4,600,600,000     4,560,600,000         -40,000,000
Multilateral Assistance.................................     1,869,428,000     1,813,550,000         -55,878,000
----------------------------------------------------------------------------------------------------------------

                              INTRODUCTION

    In fiscal year 2003, the Committee appropriated 
$23,718,563,000 for foreign operations and related programs, 
including supplemental appropriations. This year, the Committee 
has provided $18,136,859,000, of which $18,093,000,000 is for 
discretionary spending and $43,859,000 is for mandatory 
spending.

                                TITLE I

                    EXPORT AND INVESTMENT ASSISTANCE

                Export-Import Bank of the United States

                           INSPECTOR GENERAL

Appropriations, 2003....................................................
Budget estimate, 2004...................................      $1,200,000
Committee recommendation................................       1,000,000

                        ADMINISTRATIVE EXPENSES

Appropriations, 2003....................................     $67,856,000
Budget estimate, 2004...................................      75,394,668
Committee recommendation................................      74,395,000

    As a result of a new methodology to measure international 
credit risk that reduced the average subsidy cost, the 
administration did not request, and the Committee did not 
provide, a subsidy appropriation for the Export-Import Bank for 
fiscal year 2004. The Committee understands that the Export 
Import Bank will have sufficient carryover from fiscal year 
2003 to increase (under the new methodology) total credit 
authorizations by $1,800,000,000 to $14,600,000,000 in fiscal 
year 2004.
    The Committee provides $1,000,000 for the Inspector General 
of the Export-Import Bank.
    The Committee provides $74,395,000 for administrative 
expenses, which is $6,539,000 above the fiscal year 2003 level.

                Overseas Private Investment Corporation


                         SUBSIDY APPROPRIATION

                              DIRECT LOANS

Appropriations, 2003....................................     $23,844,000
Budget estimate, 2004...................................      24,000,000
Committee recommendation................................      24,000,000

    The Committee provides a subsidy appropriation for the 
Overseas Private Investment Corporation [OPIC] for direct and 
guaranteed loan credit programs of $24,000,000, which is equal 
to the budget request and $156,000 above the fiscal year 2003 
level.

                        ADMINISTRATIVE EXPENSES

Appropriations, 2003....................................     $39,626,000
Budget estimate, 2004...................................      42,385,000
Committee recommendation................................      41,385,000

    The Committee provides $41,385,000 for administrative 
expenses. This level is $1,759,000 above the fiscal year 2003 
level.

                      Trade and Development Agency

Appropriations, 2003....................................     $46,706,000
Budget estimate, 2004...................................      60,000,000
Committee recommendation................................      50,000,000

    The Committee provides $50,000,000 for the Trade and 
Development Agency [TDA], which is $3,294,000 above the fiscal 
year 2003 level.
    The Committee appreciates the nexus between aviation safety 
and trade, and recommends that TDA increase support for 
programs and activities such as technical and on-site workshops 
and interactive employee training systems that help prepare 
countries for International Civil Aviation Organization [ICAO] 
audits and that correct safety and security deficiencies.

                                TITLE II

                     BILATERAL ECONOMIC ASSISTANCE

                  Funds Appropriated to the President

           UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT

Appropriations, 2003....................................  $4,239,154,000
Emergency supplemental..................................     258,300,000
Budget estimate, 2004...................................   4,617,759,000
Committee recommendation................................   4,739,959,000

    The amounts listed in the above table for fiscal year 2003 
appropriations, the fiscal year 2004 budget estimate and the 
Committee recommendation, include funds appropriated or 
requested under child survival and health programs, development 
assistance, USAID operating expenses, USAID Inspector General 
operating expenses, mandatory retirement expenses, 
international disaster assistance, famine fund, transition 
initiatives, and credit programs.

                CHILD SURVIVAL AND HEALTH PROGRAMS FUND

Appropriations, 2003....................................  $1,824,563,000
Emergency supplemental..................................      90,000,000
Budget estimate, 2004...................................   1,495,000,000
Committee recommendation................................   1,435,500,000

    The Committee provides $1,435,500,000 for the Child 
Survival and Health Programs Fund [CSHPF] of which $345,000,000 
is for child survival and maternal health. This amount is 
$23,000,000 above the fiscal year 2003 level. The Committee 
notes that funding for the Global Fund to Fight AIDS, 
Tuberculosis and Malaria, and UNICEF, have been moved out of 
CSHPF which explains the apparent discrepancy between the text 
and table above.
    The CSHPF supports programs and activities to reduce child 
mortality and morbidity, combat infectious diseases including 
HIV/AIDS, and address a wide range of other public health 
problems around the world. The Committee reiterates its strong 
support for a comprehensive approach to global health, with an 
emphasis on building local capacity in developing countries to 
conduct effective surveillance and deliver basic health 
services.

                                HIV/AIDS

    The Committee commends the President for his commitment to 
combat HIV/AIDS, and provides a total of $1,357,000,000 for 
HIV/AIDS programs, which is $10,000,000 above the fiscal year 
2004 budget request. The Committee notes that this funding 
level will allow the President to meet his commitment to 
provide a total of $15,000,000,000 for HIV/AIDS programs and 
activities over the next 5 years.
    The Committee is keenly aware that $3,000,000,000 is 
authorized to be appropriated for each of the fiscal years 2004 
through 2008 in Public Law 108-25. However, the Committee has 
been informed that the administration intends to more gradually 
ramp up HIV/AIDS spending in all accounts from $2,040,000,000 
in fiscal year 2004 to $2,540,000,000 in fiscal year 2005, 
$3,090,000,000 in fiscal year 2006, $3,690,000,000 in fiscal 
year 2007, and $3,890,000,000 in fiscal year 2008.
    The Committee has long recognized the national security 
threats posed by unchecked HIV/AIDS infection rates, and the 
absolute devastation caused to countries, communities, and 
families by this pandemic. The Committee appreciates that the 
budget request for HIV/AIDS in fiscal year 2004 alone exceeds 
the total amount appropriated in fiscal years 1993 through 
2001.
    The $1,357,000,000 provided for HIV/AIDS programs and 
related activities in this Act is drawn from the following 
accounts: $500,000,000 from the Child Survival and Health 
Programs Fund; an additional $105,000,000 from the CSHPF for 
tuberculosis and malaria programs related to combating HIV/
AIDS; $700,000,000 from the newly established Global AIDS 
Initiative [GAI]; $50,000,000 from Economic Support Fund [ESF], 
Assistance for Eastern Europe and the Baltic States [SEED], and 
Assistance for the Independent States of the Former Soviet 
Union [FSU]; and, $2,000,000 from Foreign Military Financing.
    The Committee provides up to $250,000,000 for a U.S. 
contribution to the Global Fund to Fight AIDS, Tuberculosis, 
and Malaria from the GAI. The Committee encourages other donors 
to the Global Fund to bear their fair share and to fulfill 
their pledges in order to maximize the contribution by the 
United States. The Committee also provides $150,000,000 for the 
International Mother and Child HIV Prevention Initiative under 
this account.
    The Committee recognizes USAID's efforts to provide a 
steady and adequate supply of condoms to combat HIV/AIDS, and 
expects that USAID and the Global HIV/AIDS Coordinator will 
devote adequate financial resources and utilize mechanisms, 
such as the commodity fund established last year at USAID, to 
ensure the availability of such commodities in the future.
    Media Programs.--The Committee believes that local media 
can play an effective role in combating HIV/AIDS. USAID has 
initiated a media program in Kenya and Nigeria to increase 
knowledge about the pandemic through accurate and unbiased 
media coverage of the causes and appropriate public responses 
to HIV/AIDS. The Committee recommends that this program be 
expanded to other countries and that USAID provide at least an 
additional $2,000,000 in fiscal year 2004.
    Microbicides.--The Committee is aware that women comprise 
half of the HIV infections in the world, and that the typical 
woman who is infected has only one partner, her husband. 
Microbicides that are under development could play a major role 
in protecting women from HIV. USAID's role in the development 
of microbicides is especially important in the preclinical and 
clinical evaluation of potential new products. The Committee 
has included $22,000,000 for USAID for microbicide research and 
development.
    UNAIDS.--The Committee supports the work of UNAIDS, which 
plays a key coordination role in the global effort to design 
national AIDS plans, expand access to HIV drugs, set standards 
for vaccine trials, and collect data that is critical in 
combating the HIV/AIDS pandemic. In light of the significant 
increases in funding for HIV/AIDS programs, the Committee urges 
the administration to increase its contribution to UNAIDS.
    Safe Blood.--The Committee encourages USAID to support the 
efforts of Safe Blood for Africa, which assists African nations 
through training and technical assistance, to develop systems 
to ensure that blood supplies are screened for HIV/AIDS and 
other communicable diseases.
    Lott Carey International.--The Committee again recognizes 
Lott Carey International's [LCI] work to establish programs to 
help mitigate the devastation caused by HIV/AIDS in Africa and 
the Carribean, including education, building health care 
infrastructure, and caring for orphans, widows, and other 
family members affected by HIV/AIDS. The Committee expects 
USAID to consider and fund proposals from LCI in a timely 
manner.
    United Families International Stay Alive Program 
[UFISAP].--The Committee urges USAID to consider supporting 
proposals from UFISAP to combat HIV/AIDS in Africa.
    Needle Safety.--The Committee recognizes that the use of 
contaminated needles in developing countries contributes to the 
spread of HIV/AIDS, and supports funding for programs and 
activities that address this problem.

                       OTHER INFECTIOUS DISEASES

    The Committee provides $185,000,000 for programs to combat 
other infectious diseases, to strengthen disease surveillance, 
and to reduce anti-microbial resistance in developing 
countries. This amount is $29,500,000 above the fiscal year 
2003 level.
    Tuberculosis.--The Committee recommends not less than 
$80,000,000 to combat tuberculosis [TB], including at least 
$70,000,000 from the Child Survival and Health Programs Fund 
and at least $10,000,000 from the ESF, SEED, and FSU accounts. 
The Committee expects funds for TB from the ESF, SEED, and FSU 
accounts to be obligated and disbursed rapidly. The Committee 
supports DOTS TB programs and other multilateral efforts, 
including the Global Fund to Combat TB. The Committee also 
recommends USAID consider funding for the Global Tuberculosis 
Drug Facility.
    Malaria.--The Committee recommends not less than 
$85,000,000 from the Child Survival and Health Programs Fund 
for programs to combat malaria, a debilitating disease that 
afflicts an estimated 500 million people each year, of whom one 
million die, mostly African children. The Committee is aware of 
Medicines for Malaria Venture, a public-private partnership to 
develop new anti-malaria drugs, which are urgently needed. The 
Committee recommends that USAID provide direct support to this 
initiative. The Committee expects USAID to allocate 
approximately 10 percent of its funding for malaria programs to 
vaccine research and development, including $3,000,000 for the 
Malaria Vaccine Initiative.

                             IMMUNIZATIONS

    The Committee is aware that at least 3 million lives could 
be saved each year if every child received immunizations. Last 
year, the Senate recommended up to $60,000,000 for The Vaccine 
Fund in support of the Global Alliance for Vaccines and 
Immunization. Since The Vaccine Fund's inception 3 years ago, 
nearly $1,000,000,000 has been committed for immunization 
programs in 64 countries. The Committee supports continued 
funding for this program, and recommends $60,000,000 for The 
Vaccine Fund in fiscal year 2004.
    The Committee recommends up to $1,000,000 to support the 
Ukraine Childhood Immunization Information System pilot program 
in the Kyiv Oblast proposed by the Altarum Institute. The 
Committee expects the Government of Ukraine to contribute to 
the pilot program and follow on activities.

                      IODINE DEFICIENCY DISORDERS

    Iodine deficiency disorder [IDD] is the leading preventable 
cause of mental retardation in children. Private funds, raised 
by Kiwanis International and implemented by UNICEF, are 
preventing the mental retardation of millions of children 
through programs to iodize salt. The Committee recommends a 
total of $3,500,000 for the Kiwanis/UNICEF IDD program, 
including $2,000,000 from the Child Survival and Health 
Programs Fund and $1,500,000 from the SEED and FSU accounts.

                   VITAMIN A AND OTHER MICRONUTRIENTS

    Each year, more than 2.8 million children under 5 years of 
age die in the developing world from causes related to Vitamin 
A deficiency. The Committee recommends that at least 
$30,000,000 be provided for the overall USAID micronutrient 
program, of which at least $20,000,000 should be for programs 
relating to Vitamin A deficiency.

                           POLIO ERADICATION

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

                             BLIND CHILDREN

    Worldwide, one child goes blind every minute. According to 
the World Health Organization, 1.5 million children are blind 
and 7 million suffer from low vision. The Committee recognizes 
the work of Helen Keller Worldwide and other organizations to 
assist blind children and children with low vision, and again 
recommends $1,500,000 for such programs in fiscal year 2004.

                  DISPLACED CHILDREN AND ORPHANS FUND

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

                  FAMILY PLANNING/REPRODUCTIVE HEALTH

    The Committee provides a total of $445,000,000 for family 
planning/reproductive health programs, of which $375,500,000 is 
made available under the Child Survival and Health Programs 
Fund.
    The Committee is aware that unchecked population growth is 
a major cause of environmental degradation, and expects USAID 
to develop performance goals and indicators which promote 
cross-sectoral collaboration on community-based, population-
health-environment programs, and to consult with the Committee 
regarding these goals and indicators.

                              CHILD SAFETY

    The Committee supports the Asia Injury Prevention 
Foundation's ``Helmets for Kids'' program and recommends USAID 
provide up to $500,000 to support the expansion of this program 
in Bangladesh, Sri Lanka, Cambodia and Nepal.
    The Committee is aware of the work of the Global Peace 
Initiative (GPI) to assist orphans and widows and encourage 
USAID to consider proposals from GPI.

                            MATERNAL HEALTH

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

                       HEALTH CARE INFRASTRUCTURE

    The Committee is aware of the dire situation of the JFK 
Memorial Hospital in Monrovia, Liberia, and urges USAID and the 
State Department to consult with the Committee about options 
for sustaining the operations of this facility.

                 PROGRAMS FOR PEOPLE WITH DISABILITIES

    The Committee reiterates its strong support for programs 
that address the needs of people suffering from physical and 
mental disabilities in developing countries.
    The Committee includes a provision to ensure that the needs 
of persons with disabilities are fully taken into account by 
USAID in the design and implementation of programs, projects, 
and activities in Afghanistan and Iraq. The Committee also 
expects USAID to develop, within 180 days after enactment of 
this Act, standards for access for people with disabilities for 
construction projects funded by USAID. The Committee recommends 
that, in the interim, USAID should consider immediately 
applying the standards contained in ``Accessibility for the 
Disabled, A Design Manual for a Barrier Free Environment,'' 
prepared by the Urban Management Department of the Lebanese 
Company for the Development and Reconstruction of Beirut 
Central District.
    The Committee commends Mental Disability Rights 
International's work in Kosovo, and encourages USAID to support 
its programs and activities.
    The Committee provides $10,000,000 to continue support for 
wheelchairs for needy persons in developing countries. Of this 
amount, the Committee directs $5,000,000 be provided to 
Wheelchairs for the World, and expects these funds to be 
matched by private donations on a dollar-for-dollar basis. The 
Committee encourages the remaining funds to be maximized by 
matching, in-kind contributions from recipients.
    The Committee notes the work of the Center for Mind-Body 
Medicine [CMBM] to train mental health and other professionals 
to treat conflict-related trauma in the Balkans. The Committee 
requests USAID and the State Department to consider proposals 
to expand CMBM programs to other regions.

                           MEDICAL EQUIPMENT

    The Committee supports the efforts of organizations and 
individuals to improve healthcare facilities in developing 
countries by providing medical equipment, medical supplies, 
hospital linens, and medical textbooks. The Committee 
recommends that USAID provide $500,000 to the International 
Medical Equipment Collaborative for these purposes.

                         DEVELOPMENT ASSISTANCE

Appropriations, 2003....................................  $1,379,972,000
Budget estimate, 2004...................................   1,345,000,000
Committee recommendation................................   1,423,000,000

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

                          WOMEN IN DEVELOPMENT

    The Committee recommends $15,000,000 in fiscal year 2004 
for USAID's Office of Women in Development [WID], and expects 
the Administrator of USAID to strengthen the WID Office. The 
Office continues to play a key role in integrating gender 
perspectives into USAID's programs and policies, and providing 
technical support, research and implementation of initiatives 
focused on women's economic status and legal rights, and girls' 
education.
    The Committee supports the mission of Women's Campaign 
International [WCI], which works to enhance the status of women 
through media, leadership, business, organizational, and 
public-service training in developing countries. The Committee 
recommends at least $2,500,000 for WCI in fiscal year 2004.

                       CHILDREN'S BASIC EDUCATION

    Educating children in developing countries is fundamental 
to long term development. The Committee believes that USAID 
should significantly broaden its support for these activities, 
and provides $220,000,000 for children's basic education in 
fiscal year 2004. The Committee expects USAID to emphasize 
programs that expand access and quality of education for girls, 
enhance community and parental participation in schools, 
improve teacher training, and build local management capacity.

                 AMERICAN SCHOOLS AND HOSPITALS ABROAD

    The Committee continues to recognize the important 
contributions made to U.S. foreign policy by institutions 
funded by the American Schools and Hospitals Abroad [ASHA] 
program, and provides that not less than $20,000,000 should be 
made available to support these institutions in fiscal year 
2004. The Committee, once again, expects USAID to allocate 
sufficient sums to administer the ASHA program from funds 
provided for Operating Expenses, so it will not be necessary to 
expend any program funds for administrative purposes.
    Although the Committee understands that ASHA funds are 
available for a variety of purposes, such as construction and 
equipment, libraries, computer technology, curriculum and staff 
support, and related expenses, the Committee reaffirms its 
intention that this assistance is not to be presumed to offer 
permanent budget support to ASHA recipients. The Committee 
strongly encourages ASHA to give priority to organizations 
which demonstrate a commitment to private fundraising to match 
government support.
    The Committee continues to be impressed with the 
contributions to United States interests made by several 
institutions and believes that they warrant further ASHA 
support, including Lebanese American University, International 
College; The Johns Hopkins University's Centers in Nanjing, 
China and Bologna, Italy; the Tel Aviv University: American 
Council; the Center for American Studies at Fudan University, 
Shanghai; the Hadassah Medical Organization; EARTH University's 
Center for Sustainability and Biodiversity in Cost Rica; the 
American University of Beirut; the American University of 
Cairo; and the Feinberg Graduate School of the Weizmann 
Institute of Science.

                           VICTIMS OF TORTURE

    The Committee recommends that USAID provide up to 
$11,000,000 in fiscal year 2004 for programs and activities to 
assist victims of torture, including for centers for victims of 
torture that provide services consistent with the goals of the 
Torture Victims Relief Reauthorization Act of 1999.

                     PATRICK LEAHY WAR VICTIMS FUND

    The Committee continues to strongly support the Leahy War 
Victims Fund, which, since 1989, has provided essential 
orthopedic and related medical, surgical, and rehabilitation 
assistance for persons who are disabled as a result of civil 
strife or armed conflict. In addition to enabling amputees and 
other people with disabilities to regain mobility, the 
Committee supports USAID's efforts to increase their 
accessibility to mainstream educational, recreational and 
economic opportunities. The Committee expects USAID to provide 
$12,000,000 for this program in fiscal year 2004.
    The Committee continues to encourage the Fund to increase 
its support for initiatives in conflict-affected countries that 
will lead to appropriate disability laws and policies, and 
improvements in and the expansion of appropriate services and 
programs that are needed by people with conflict-related 
physical disabilities.

                   COMMUNITY-BASED POLICE ASSISTANCE

    The Committee expects USAID to comply with the annual 
reporting requirement contained in section 582(b) of the fiscal 
year 2003 Foreign Operations, Export Financing, and Related 
Programs bill.

                            SPORTS PROGRAMS

    The Committee is aware of the intrinsic value of sports in 
enhancing child health and development and building 
communities. Olympic Aid-Right to Play is an athlete-driven 
organization using sport and recreation to achieve these goals 
with programs in numerous countries around the world. The 
Committee recommends USAID and the State Department provide up 
to $5,000,000 to support Olympic Aid-Right to Play's programs.
    The Committee also recognizes Special Olympics' efforts to 
expand its international programs on behalf of the estimated 
170 million people worldwide who suffer from mental 
retardation, and urges USAID to support these programs.

          COOPERATIVE ASSOCIATION FOR STATES FOR SCHOLARSHIPS

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

                           URBAN DEVELOPMENT

    The Committee reiterates its strong support for the work of 
the Institute for Liberty and Democracy [ILD], which has 
successfully implemented a number of economic growth and 
poverty reduction programs in developing countries. The 
Committee recommends that up to $6,000,000 be made available to 
support ILD programs and activities.
    The Committee again recognizes the work of the 
International Real Property Foundation [IRPF] to create private 
real estate markets and promote property rights abroad. The 
Committee provides that up to $3,000,000 should be made 
available to support expansion of IRPF's activities to Latin 
America, Asia, and Africa.

                       FAITH BASED ORGANIZATIONS

    The Committee commends USAID for its work with faith based 
organizations, and encourages an expansion of efforts with 
groups ranging from the Alaska Interfaith Council in the 
Russian Far East to St. Patrick's Church and School in Haiti.

                    COMMERCIAL DEVELOPMENT PROGRAMS

    The Committee strongly supports microenterprise development 
programs for the poor, especially women, and recommends that 
USAID provide at least $180,000,000 for these activities. The 
Committee expects USAID to preserve the viability of leading 
microfinance NGO networks, including faith-based networks, by 
providing substantial funding to these entities so they may 
increase the number of people they serve. The majority of 
microenterprise development resources should be used to support 
the direct provision of services to poor microentrepreneurs 
through these networks. Funding for administrative, 
procurement, research and other support activities not directly 
related to the delivery and management of services should be 
kept to a minimum.
    The Committee supports the development, in conjunction with 
micro-credit practitioners, of poverty measurement methods as a 
means of verifying that at least half these resources are 
targeted toward the world's poorest people. The Committee 
requests that USAID report to the Committee no later than 90 
days after the enactment of this Act on the status of the 
development of these methods. The Committee recognizes the 
positive impact that microcredit programs have on the lives of 
women around the world.
    The Committee strongly supports the volunteer activities of 
the International Executive Service Corps [IESC], and believes 
that USAID continues to underutilize IESC's capacity to promote 
economic growth by assisting small and medium sized companies. 
The Committee believes that aggressive use of volunteer 
organizations such as IESC produces positive results in 
development programs abroad, and shares the administration's 
support for greater volunteerism in America. The Committee 
expects USAID to provide not less than $1,500,000 to IESC.
    The Committee recognizes the important mission of the 
Office of Private and Voluntary Cooperation [PVC], including 
its role as the Secretariat for the U.S. Advisory Committee on 
Voluntary Foreign Aid. The Committee recommends USAID to 
consider a substantial increase in funding for the PVC Office, 
and suggests up to $10,000,000 for programs that address the 
root causes of famine.
    The Committee is aware of the efforts of the World Council 
of Credit Unions to further develop credit union systems in 
South Africa and Mexico in order to promote free-market 
principles and increase the ability of poor people to access 
credit and other banking services. The Committee recommends up 
to $2,000,000 for this initiative.
    The Committee provides $1,000,000 for the U.S. 
Telecommunications Training Institute [USTTI]. USTTI is a 
nonprofit joint venture between the public and private sectors 
dedicated to providing tuition free communications and 
broadcast training to professionals from around the world.

                    AGRICULTURE DEVELOPMENT PROGRAMS

    The Committee supports USAID's renewed emphasis on 
agriculture, as it has long believed that agricultural 
development is critical to combating poverty. The Committee 
provides that $40,000,000 should be made available for plant 
biotechnology programs, with an emphasis on research projects 
to improve food security and nutrition in Africa and Asia.
    The Committee believes that sustainable agricultural 
development is a key factor in reducing poverty and alleviating 
food shortages, as well as promoting economic growth and 
political stability in developing countries. The Committee 
strongly supports USAID's investments in agriculture programs, 
and encourages a central role for these programs in USAID's 
future economic development and disaster relief strategies. The 
Committee encourages increased funding for agricultural 
development activities.
    The Committee continues to believe that dairy development 
is an important component of U.S. foreign assistance programs 
and recommends that USAID increase funding above the current 
level.

                      INTERNATIONAL COFFEE CRISIS

    The Committee continues to be concerned with the impact of 
the international coffee crisis on the livelihoods of poor 
coffee farmers, as well as on United States counter-narcotics 
and foreign assistance efforts. In fiscal year 2003, Congress 
appropriated $500,000 for a contribution to the International 
Coffee Organization [ICO] as one way to help address this 
problem.
    While pleased that the State Department appears to be 
making a careful decision concerning ICO membership, the 
Committee recognizes that this is only one aspect of finding a 
solution to the coffee crisis. The Committee is disappointed 
that little progress has been made in formulating a 
comprehensive, multilateral strategy to address this issue--as 
called for in S. Res. 368 and H. Res. 604, passed during the 
107th Congress. The Committee, therefore, has included a 
provision that requires the Secretary of State, in consultation 
with the Administrator of USAID and the Secretary of the 
Treasury, to report to Congress on progress in formulating such 
a strategy.
    The Committee also believes that finding alternative 
sources of income for coffee farmers in Vietnam, some of whom 
only recoup 40 percent of their costs, is key to a solution to 
this crisis and urges USAID to immediately increase resources 
to support these types of programs.

                         FERTILIZER DEVELOPMENT

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

                COLLABORATIVE RESEARCH SUPPORT PROGRAMS

    The Committee continues its strong support for the 
Collaborative Research Support Programs [CRSPs], and recommends 
that the CRSPs be considered for funding for a broad range of 
development-related activities.

                          ENVIRONMENT PROGRAMS

    The Committee has consolidated biodiversity, energy and 
natural resource management activities under a single heading 
entitled ``Environment Programs.'' The Committee intends to 
provide sufficient resources to enable the United States to be 
at the forefront of these critical and complex global issues. 
To that end, the Committee provides a total of $485,000,000 for 
environment programs, of which not less than $325,000,000 is to 
be funded within the Development Assistance account. A total of 
$165,000,000 of Development Assistance funds is for 
biodiversity conservation. A total of $185,000,000 of funds in 
the Act is for energy conservation, energy efficiency, and 
clean energy programs.
    Biodiversity.--The Committee continues to believe that 
USAID should give higher priority to biodiversity conservation. 
The Congo Basin Forest Partnership [CBFP], a comprehensive, 
multi-year, regional strategy to protect biodiversity in 
central Africa, is an example of what can be achieved by 
bringing together governments, timber companies, and NGOs to 
protect biodiversity. The Committee urges USAID to support 
proposals of the Jane Goodall Institute to expand its work with 
African communities to protect forests and wildlife.
    The Committee commends the work of the Global Environment 
Facility [GEF], the World Conservation Union [IUCN] other NGOs 
and local governments to protect the Amazon Basin region, which 
is home to the largest and among the most biologically diverse 
forests in the world as well as many culturally unique 
indigenous groups. However, the Committee notes that an 
estimated 7,000 square miles of Amazon forest are being cut 
down each year, and believes that efforts to protect this area 
should be coordinated and broadened into a comprehensive, 
multi-year, regional action plan similar in approach to the 
CBFP. The Secretary of State, after consultation with the 
Administrator of USAID and other appropriate departments and 
agencies, the GEF, the IUCN and other NGOs with relevant 
expertise in biodiversity conservation and with the governments 
of Brazil, Peru, Bolivia, Colombia, Venezuela, Guyana, 
Suriname, and French Guiana, is to submit to the Committees on 
Appropriations, within 180 days after enactment of this Act, 
such an action plan for biodiversity conservation in the Amazon 
Basin. The Committee provides $10,000,000 for implementation of 
the plan in fiscal year 2004. The Committee notes the effective 
work of the Amazon Conservation Team [ACT] in strengthening the 
capacity of indigenous groups, local environmental 
organizations and law enforcement agencies in the Brazilian 
Amazon to protect the biodiversity of indigenous reserves, and 
provides $1,500,000 to support its work. The Committee intends 
that total assistance for Brazil will be $34,233,000, including 
the amount requested in the Act for Brazil in fiscal year 2004 
plus the additional assistance through ACT.
    The Committee notes that human impact is the primary cause 
of environmental degradation and that unchecked population 
growth and poverty are key contributors to rapid biodiversity 
loss. The Committee continues to believe that integrated 
approaches to health, family planning, and environmental 
conservation are necessary to address the needs of communities 
where biodiversity and endangered species are threatened. The 
Committee supports the efforts of USAID's Office of Population 
to support family planning in these areas, and expects USAID to 
invest other global health (including HIV/AIDS), environment 
and sustainable agriculture funds in the appropriate components 
of integrated population-health-environment programs.
    Energy.--The Committee continues to strongly support 
renewable energy, energy efficiency, and clean energy programs, 
and provides $185,000,000 for these activities. The Committee 
expects these funds to be used to assist developing countries 
to measure, monitor, report, verify, and reduce greenhouse 
gases and related activities. The Committee is concerned that 
the report on the administration's climate change programs, 
required in section 555(b) of Public Law 108-7 to be submitted 
``not later than 45 days after the date on which the 
President's fiscal year 2004 budget request is submitted to 
Congress,'' is long overdue. The Committee expects the report 
to be submitted promptly. Like last year, the Committee 
requires a report containing this same information for fiscal 
year 2004.
    The Committee recommends $15,000,000 for USAID's Office of 
Energy and Information Technology.
    The Committee recommends up to $2,000,000 to support 
public-private partnerships utilizing American technology to 
promote small and medium hydropower in developing countries. 
These funds should be made available to USAID's Office of 
Energy and Information Technology and USAID's Office of Energy 
Efficiency and Renewable Energy.
    The Committee is aware of the Solar Electric Light Fund 
[SELF], which provides solar power technology to remote 
communities in Africa, Asia, and South America where other 
energy technologies may be unavailable or impractical. These 
low-cost, low-maintenance, non-polluting photovoltaic panels 
generate electricity for lighting, water pumps, health clinics, 
and internet access. The Committee urges USAID to support 
SELF's work.

                             PARKS IN PERIL

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

                             BIRDS OF PREY

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

                  INTERNATIONAL CONSERVATION PROGRAMS

    The Committee supports international conservation programs 
that preserve endangered species and maintain their natural 
habitats. The Committee recommends that USAID consider funding 
conservation proposals and programs in Malaysia, Indonesia, 
Namibia, Trinidad, and Brazil.
    The Committee remains concerned with the destruction of 
orangutan habitat in Indonesia, and expects USAID to provide at 
least $2,500,000 for continued support through nongovernmental 
organizations, including the Orangutan Foundation and others, 
for activities to save the orangutan from extinction. The 
Committee expects these funds to be used to work with local 
communities to protect orangutan habitat in both Borneo and 
Sumatra, including, if appropriate, to support law enforcement 
activities, and requests to be consulted prior to the 
obligation of these funds.

                           WATER CONSERVATION

    The Committee is aware that many parts of the world do not 
have access to reliable sources of drinking water, forcing 
people to spend large amounts of time in search of clean water 
to meet their most basic human needs. For a small amount of 
funding and basic equipment, a local well can be drilled. The 
Committee has provided $100,000,000 for these efforts, and 
expects USAID to report no later than 90 days after enactment 
of this Act on funding and implementation of its water 
projects, including the number and location of wells drilled, 
and the cost per well.
    The Committee continues to support the efforts of 
International Project WET. The Committee recommends that USAID 
consider providing $500,000 to support International Project 
WET's efforts to expand its research, development, and 
implementation capabilities.
    The Committee is aware of the work of Water Missions 
International [WMI], a faith-based engineering nonprofit 
organization that provides safe and sustainable water systems 
for developing countries and disaster areas. The Committee 
recommends that USAID provide $1,500,000 to WMI's water supply 
project for hospitals in Honduras.
    The Committee supports the Red Sea Marine Peace Park 
Cooperative Program in the Gulf of Aqaba, a joint undertaking 
by Jordan, Israel, and the United States to conduct research 
and monitoring of the physical, chemical, and biological 
oceanography of the northern Gulf of Aqaba and coral reef 
environments. The Committee urges USAID to continue funding 
this important program.

                          UNIVERSITY PROGRAMS

    The Committee has, once again, received a large number of 
requests to fund specific activities at or through American 
institutions of higher education. The Committee strongly 
supports activities that advance international development and 
U.S. foreign policy goals. The Committee has reviewed the 
concepts proposed for funding, and recommends that USAID and/or 
the Department of State (as appropriate for the proposed 
project) actively consider proposals submitted by the following 
organizations.
    Unless a proposal demonstrates a unique, innovative, or 
proprietary capability, or demonstrates special considerations 
that justify limited or non-competitive treatment, the 
Committee expects that competitive procedures will be applied 
with regard to the proposals on the list that follows. The 
Committee also expects USAID to give priority to proposals that 
have technical merit, realistic budgets, and achievable 
objectives.
    No later than 60 days after the submission of the report 
required by section 653(a) of the Foreign Assistance Act, USAID 
should submit a report to the Committee on the status of each 
activity identified below. Such a report should include: (1) 
the status of the funding proposal by the organization 
associated with each activity; (2) the degree to which the 
proposal is consistent with and would advance international 
development and U.S. foreign policy goals for the country or 
region in which the activity would take place; (3) the degree 
to which matching or other funds would be provided by the 
organization to complement the Federal contribution; (4) to the 
extent known at the time, any decision by USAID or the 
Department of State on funding the activity, including the 
funding level; and (5) any other relevant information deemed 
important by USAID or the Department of State. The Committee 
also expects to receive a second report on the status of these 
proposals no later than July 1, 2004.
    The Committee notes that USAID has not yet put in place 
satisfactory procedures for responding to proposals submitted 
by universities. The Committee continues to receive complaints 
from Members of Congress and universities that USAID is not 
devoting sufficient time and attention to these proposals. Too 
often, the Committee has heard that USAID Washington has 
referred a university to a USAID field mission, which in turn 
has referred the university back to Washington. Months of delay 
and frustration have ultimately caused these universities to 
seek assistance from the Committee in obtaining consideration 
of their proposals. The Committee expects USAID to immediately 
rectify this situation. Otherwise, the Committee will modify 
its approach for handling university proposals in fiscal year 
2005.
    With the foregoing in mind, the Committee recommends the 
following proposals for USAID's active consideration:
    Africa-America Institute.--A program by the African 
Technology for Education and Workforce Development Initiative 
[AFTECH] to establish a distance learning program between U.S. 
universities and African universities.
    Chestnut Hill College.--A collaborative distance learning 
project on free markets and democracy with the Sterling 
Educational Institutes and the International Center for 
Education and Research Distance Learning Center in Kiev, 
Ukraine.
    Dartmouth College.--A joint proposal with the American 
International Health Alliance to continue a primary medical 
care development project in Kosovo that focuses on family 
practice and preventative health care training.
    Eastern Michigan University.--A proposal to establish a 
center for Middle East Studies and Research.
    Grambling University.--A program to provide independent 
policy, research, and leadership training for domestic and 
international students, community leaders, and government 
officials.
    Harvard University.--A proposal to develop future community 
leaders, promote democracy and economic self-sufficiency, and 
gender equality in Afghanistan through the Afghan Women's 
Leadership Training Initiative.
    Historically Black Colleges.--A proposal to support the 
efforts of these institutions to develop a virtual university 
consortium and establish an Institute for Emerging Democracies.
    Idaho State University.--A proposal to study the 
sociological, political and economic forces in the Pacific 
region in order to deter terrorism.
    Kansas State University.--A proposal for the Cereals 
Comparative Genomics Initiative to use genomics technologies to 
develop grain production.
    Langston University.--A proposal for a collaborative 
partnership with Oklahoma University and WorldSpace, 
Incorporated, to design and deliver HIV/AIDS prevention and 
education courses and learning materials to Nigeria's school 
system.
    La Roche College.--A proposal to expand programs to educate 
young people from conflict, post-conflict, and developing 
regions of the world.
    Louisiana State University.--A proposal to expand trade and 
commerce through a commercial law program with several Latin 
American countries.
    Louisiana State University.--A proposal to provide 
independent media training to local governmental officials from 
Central and Eastern Europe.
    Louisiana State University.--A proposal to develop 
aquiculture resources with the University of Namibia.
    Norwich University.--A joint proposal of Norwich University 
and Hibernia College, Dublin, to establish an online program in 
criminology and policing, public administration, and 
international security.
    Oregon State University.--A proposal to establish the 
Universities Partnership for Transboundary Waters, a consortium 
aimed at managing conflicts over water issues.
    South Dakota State University.--A proposal to enhance 
research, exchanges and education with Russian, Chinese, and 
Central Asian governments and non-governmental organizations on 
agricultural development.
    Temple University.--A proposal to expand judicial training 
programs in the People's Republic of China.
    Tulane University.--A collaborative partnership with Xavier 
University to prevent and treat HIV/AIDS in the security forces 
of Economic Community of West African States [ECOWAS] member 
countries.
    University of Alaska.--A program with Alaska Pacific 
University and the North Slope Borough and the Northwest Arctic 
Borough to provide training and technical assistance to 
strengthen Chukotka's economy, develop market driven systems 
and improve social conditions, particularly for indigenous 
people in the region.
    University of Arkansas Medical School.--A collaborative 
effort with the Volgograd City Health Department, Volgograd 
Medical Academy, and other public-private partners in the 
community to enhance various health care delivery systems in 
the region.
    University of Kentucky.--A program relating to health 
education in Romania.
    University of Kentucky.--A proposal for coal mine safety 
programs in the former Soviet Union.
    University of Louisville.--A project relating to drinking 
water systems management and maintenance in the Republic of 
Georgia.
    University of Louisville.--A collaborative program with the 
University of Alabama-Birmingham, the Medical University of 
South Carolina, and Clemson University for research on plant 
materials in the Caribbean and Philippines.
    University of Louisville.--A program to work with 
impoverished communities in South Africa on economic reform and 
public health.
    University of Miami.--A proposal for the Cuba Transition 
Project.
    University of Montana.--A proposal for a demonstration rule 
of law and legal training project in Kyrgyzstan.
    University of Nebraska.--A proposal by the Medical Center 
to provide internet-based education and training for health 
professionals in developing countries.
    University of Nebraska, Omaha.--A proposal to provide 
vocational-education training programs in Afghanistan through 
the Community-Based, Vocational-Education Project.
    University of Notre Dame.--A proposal by the Kroc Institute 
for International Peace Studies to promote institution building 
in Muslim societies.
    University of Northern Iowa.--A proposal concerning the 
Global Health Corps program, which trains university students 
to conduct community health programs in under-served areas in 
developing countries.
    University of Northern Iowa.--A proposal for the Russo-
American Institute to deepen cultural understanding and promote 
professional collaboration through exchange programs with 
Russian universities.
    University of Northern Iowa.--A collaborative project to 
promote physical activity and proper nutrition among youth in 
underserved communities in Africa and Latin America through the 
Fitness Diplomats Program.
    University of Rhode Island.--A collaborative project with 
Brown University and The George Washington University to foster 
democratic, participatory, and accountable governance in 
Liberia through the Liberian Peace-Building and Civic 
Accountability Project.
    University of South Alabama.--A proposal to enhance the 
Birth Defects Monitoring Program in Ukraine, which will allow 
additional monitoring of environmentally linked birth defects.
    University of Wisconsin--Platteville.--A proposal to form a 
partnership with Middle East Technical University in Ankara, 
Turkey to create an engineering education program.
    University of Wisconsin--Stevens Point.--A proposal to 
enhance environmental and sustainable development programs in 
Latin America.
    Vermont Law School.--A proposal to establish centers for 
environmental law education and advocacy in Russia, based on an 
existing partnership with Petrozavodsk State University in 
Karelia.
    Vermont Law School.--A proposal to strengthen China's legal 
system by improving legal education, particularly in the area 
of environmental law, through expanding a partnership between 
Vermont Law School and Sun Yat-sen University, involving 
exchanges, training of Chinese law faculty, and the creation of 
the first environmental law clinic in China.
    Western Kentucky University.--A proposal for the continued 
funding of an international journalist training program.
    Western Kentucky University.--A project to develop and 
promote safe coal use practices and karst water resources in 
China, in order to protect vulnerable children.

                             COUNTRY ISSUES

                              AFGHANISTAN

    The Committee provides a total of $600,000,000 for 
assistance for Afghanistan in this Act, which is $49,450,000 
above the budget request. While this falls short of the levels 
authorized in the Afghanistan Freedom Support Act of 2002 
(Public Law 107-327), the Committee is unable to make 
additional contributions without making deep cuts in other 
important international assistance programs.
    The Committee notes that $365,000,000 for assistance for 
Afghanistan was included in the fiscal year 2003 emergency 
supplemental, which included $100,000,000 for the Kabul-
Kandahar road and $170,000,000 to train, equip, and support the 
Afghan National Army.
    The Committee commends the efforts of those individuals 
involved in the reconstruction of Afghanistan, and remains 
concerned with the tenuous security situation that stems from 
external forces based in Pakistan and internal challenges from 
local commanders and governors disloyal to President Karzai's 
government. These security threats imperil humanitarian aid 
workers and USAID contractors, and undermine progress on large 
infrastructure projects, demining, and other activities 
important to that country's development. The Committee 
encourages all U.S. Government departments and agencies to 
coordinate efforts, including with the United Nations and other 
allies, to provide adequate security for the Afghan people and 
those working to improve their lives. Continued insecurity 
benefits only those internal and external forces who seek to 
erode the authority of President Karzai.
    The Committee supports the use of fiscal year 2004 funds to 
continue training for the Afghan National Army and a national 
police force, provide for the welfare of the Afghan people, 
combat narcotics production and trafficking, and establish 
democratic and representative institutions. The Committee 
counsels Afghan leaders to carefully assess preparations and 
funding commitments for anticipated elections in 2004, and to 
weigh the implications to the country's development if less 
than credible polls are held.
    The Committee remains concerned with the situation of 
Afghan women, who suffered extreme hardships under the Taliban 
and continue to face major obstacles in protecting their rights 
and participating in the economic and political life of the 
country. The Committee believes that the Afghan Ministry of 
Women's Affairs has a key role to play in addressing these 
issues, and expects USAID to support its activities and to 
provide technical and other assistance to the Ministry to 
improve its capacity and effectiveness. The Committee also 
believes that women-led Afghan NGOs play an indispensable role 
in community development, and expects USAID to provide 
technical and other assistance to improve the capacity of these 
organizations and to support their activities.
    The Committee also strongly supports the Afghan Human 
Rights Commission and the Judicial Reform Commission. The Human 
Rights Commission has a vital role to play in safeguarding the 
basic rights and liberties of all Afghan citizens, through 
public education, reporting, and advocacy. The Committee 
particularly recognizes the need for the protection of women's 
rights. The Committee recommends that funds be made available 
for infrastructure for the Human Rights Commission's regional 
offices and for radio transmission equipment.
    As in the fiscal year 2002 Supplemental and the fiscal year 
2003 Foreign Operations Act, the Committee again provides that 
funds made available for relief and reconstruction in 
Afghanistan shall be used for assistance for Afghan communities 
and families that suffer losses as a result of the military 
operations. The Committee appreciates the assistance of the 
United States military in Afghanistan in helping to identify 
Afghan communities where American ordnance mistakenly targeted 
innocent civilians. The Committee intends that USAID and the 
Department of State, in coordination with the Provincial 
Reconstruction Teams and nongovernmental organizations, will 
continue to seek to identify families of noncombatant Afghans 
who were killed or injured or whose homes were damaged during 
the military operations, and to provide appropriate assistance. 
The Committee provides $2,500,000 for this purpose.
    The Committee strongly supports demining and ordnance and 
munitions removal programs in Afghanistan, and notes the work 
of No Strings, an organization that uses theater and puppetry 
to provide lifesaving education about landmines to Afghan 
children.
    The Committee requests the Secretary of State to provide a 
report not later than 90 days after enactment of this Act on 
impediments to reconstruction in Afghanistan, including 
assistance provided by foreign nations or organizations to 
local and regional Afghan warlords, and fulfillment of 
commitments made by donors to Afghanistan.

                                 BURMA

    The Committee strongly condemns the May 30, 2003 assault on 
democracy in Burma, and deplores the senseless loss of life, 
injury and arrest of Burmese civilians by the repressive 
military junta, the State Peace and Development Council [SPDC]. 
The Committee believes that the attack on democracy leader Daw 
Aung San Suu Kyi and the National League for Democracy's [NLD] 
convoy underscores the complete disregard the junta has for the 
welfare, human rights, and dignity of the people of Burma.
    The Committee calls for the immediate release of Suu Kyi 
and all other prisoners of conscience that continue to be held 
by the junta, and demands justice for those killed and injured. 
The Committee notes the Senate's recent 97-1 vote in support of 
the Burmese Freedom and Democracy Act of 2003, and counsels the 
European Union and its acceding countries, the United Nations, 
and regional neighbors to take similar, decisive measures to 
support democracy in Burma.
    The Committee intends to review the response of regional 
neighbors to the crisis, and will consider restricting United 
States foreign assistance to those countries which continue to 
provide assistance and support to the SPDC. The Committee 
reiterates that Burma's myriad problems--including HIV/AIDS, 
drugs, and refugees--pose a clear and present security threat 
to the entire region.
    While the Committee supports the provision of HIV/AIDS 
assistance to the people of Burma through nongovernmental 
organizations and only after consultation with the NLD, the 
Committee has included a reporting requirement to determine the 
amount of funds expended by the SPDC on HIV/AIDS programs and 
the extent to which nongovernmental organizations are able to 
conduct HIV/AIDS programs throughout Burma without interference 
from the SPDC. Given the ongoing crackdown against the NLD, 
within 30 days after enactment of this Act the Committee 
requests USAID and State to consult with the Committee on plans 
to proceed with HIV/AIDS and other programs in Burma.
    In addition, the Committee requests that within 60 days 
after enactment of this Act, the State Department report on the 
effects on public health stemming from the political crisis in 
Burma. The Committee expects this report to be based on the 
findings of the U.S. Embassy in Rangoon, and to include 
information on how U.N. agencies whose portfolio includes 
providing assistance on HIV/AIDS, TB, malaria, and dysentery 
will continue to provide such assistance during the crisis.
    The Committee provides $15,000,000 in ESF funds to support 
democracy activities in Burma, along the Burma-Thailand border, 
for activities of Burmese student groups and other 
organizations located outside Burma, and for the purposes of 
supporting the provision of humanitarian assistance to 
displaced Burmese along Burma's borders. The Committee expects 
humanitarian assistance for displaced Burmese to be 
supplemented by at least $10,000,000 from Migration and Refugee 
Assistance.

                                CAMBODIA

    The Committee continues restrictions on assistance to the 
central Government of Cambodia, with a few exceptions, and 
remains concerned with lawlessness and impunity in that 
country. The Committee provides that $7,000,000 shall be made 
available for assistance for democratic opposition political 
parties in Cambodia.
    The Committee permits the extension of International 
Military and Education Training assistance to Cambodia only if 
the Secretary of State provides to the Committee a list of 
those individuals who have been credibly alleged to have 
ordered or carried out extrajudicial and political killings 
that occurred during the March 1997 grenade attack against the 
Khmer Nation Party, the July 1997 coup d'etat, and election 
related violence that occurred during the 1998, 2002, and 2003 
elections. The Committee recommends the State Department to 
consult with a broad range of organizations in creating this 
list, including the Federal Bureau of Investigations, and 
domestic and international human rights organizations.
    The Committee also restricts funding to any Khmer Rouge 
tribunal established by the Government of Cambodia unless the 
Secretary of State certifies that the perpetrators of the March 
1997 grenade attack and election-related killings have been 
arrested and prosecuted. While the Committee fully supports 
justice for crimes committed by Pol Pot and other Khmer Rouge 
insurgents, it also remains concerned that corrupt Cambodian 
courts and judges are incapable of delivering justice for 
crimes committed today.
    The Committee continues to strongly support the 
Documentation Center of Cambodia, and recommends not less than 
$275,000 to support its activities in fiscal year 2004. The 
Committee requests USAID to work with the Center so this 
assistance may be provided directly, rather than through a 
third party organization.
    The Committee commends Global Witness for its efforts to 
monitor compliance with the forestry agreement entered into by 
the Cambodian Government and international donors. The 
Committee deplores the Cambodian Government's failure to honor 
its commitments under the agreement, and its decision to 
terminate Global Witness' monitoring role. The Committee was 
also disappointed by the World Bank's handling of this matter. 
The Committee believes that Global Witness continues to have an 
important role to play in the protection of Cambodia's forests, 
which are threatened by some of the same government officials 
who are responsible for protecting them. The Committee expects 
that not less than $250,000 in ESF funds will be provided to 
support Global Witness' activities in Cambodia in fiscal year 
2004.

                                 CHINA

    The Committee provides $35,000,000 for programs to support 
democracy, human rights and the rule of law in China, Hong 
Kong, Taiwan, and Tibet, of which not less than $15,000,000 
shall be made available for programs in China to be 
administered by the Bureau of Democracy, Human Rights and Labor 
at the State Department. These funds are in addition to such 
sums provided to the Bureau in the President's fiscal year 2004 
request. The Committee expects that of the remaining funds, up 
to $10,000,000 will be provided to the National Endowment for 
Democracy, and the balance will be provided to nongovernmental 
and academic organizations to support programs relating to 
China, Tibet, and Hong Kong. The Committee strongly endorses 
activities targeted toward freedom of expression in the media 
and on the internet, the rule of law, labor reform, and 
grassroots elections in China.
    The Committee is supportive of a number of important rule 
of law programs implemented in China by nongovernmental 
organizations, academic institutions, and other groups, 
including the American Bar Association [ABA]. The Committee 
urges USAID and the State Department to seriously consider 
proposals by the ABA, and to give funding priority to those 
organizations and groups with programmatic experience in China.

                                 CYPRUS

    The Committee provides $15,000,000 from the ESF account for 
Cyprus to be used for scholarships, bicommunal projects, and 
measures aimed at reunification of the island and designed to 
reduce tensions and promote peace and cooperation between the 
two communities on Cyprus. The Committee intends that these 
resources be made available to maximize leverage to improve 
prospects for a peaceful settlement in Cyprus and notes that 
this amount is $7,500,000 above the budget request.

                    DEMOCRATIC REPUBLIC OF THE CONGO

    The Committee is concerned with ongoing reports of human 
rights violations in Ituri province and the eastern portion of 
the Democratic Republic of the Congo [DRC]. The Committee 
believes that, because of the mounting frequency and severity 
of violations being committed by local and proxy militias, as 
well as the politicization and arming of the population in the 
region, immediate and sustained action by the international 
community is necessary.
    The Committee welcomes the decision of the United Nations 
to deploy an Interim Emergency Multinational Force [IEMF] to 
Bunia town but is concerned that this force will be unable to 
intervene to prevent killings and massacres in Ituri province 
as a whole. The Committee urges the State Department to 
consider how best the United States can help address the 
underlying causes of instability and insecurity there.
    The Committee requests the Secretary of State to submit a 
report, not later than 90 days after enactment of this Act, 
describing any continuing links between Ugandan and Rwandan 
security forces with the arming and mobilization of local 
militias in the DRC.

                   DEMOCRATIC REPUBLIC OF TIMOR-LESTE

    Like last year, the Committee provides $25,000,000 in ESF 
assistance for East Timor. The Committee intends that, in a 
shift of emphasis from prior years, these funds will be used to 
address conditions of poverty through programs to support 
subsistence agriculture and other income generating 
opportunities, expand basic education and vocational training 
especially for unemployed youth, strengthen the judiciary, 
promote good governance and the sustainable use of natural 
resources, and improve health care and other basic human 
services and physical infrastructure. The Committee is aware of 
negotiations between East Timor and Australia over petroleum 
reserves, which will be of critical importance to the future 
economic development and security of East Timor. The Committee 
urges both governments to engage in good faith negotiations to 
resolve their maritime boundary expeditiously in accordance 
with international legal principles. The Committee is aware of 
concerns regarding accountability in East Timor for future 
petroleum revenues, and supports the early establishment of 
mechanisms to prevent corruption and ensure that these revenues 
are used effectively to improve the lives of the people of East 
Timor.

                               GUATEMALA

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

                                 HAITI

    The Committee notes the work of Aid to Artisans, which has 
helped to improve the quality and increase sales of Haitian 
arts and crafts, and believes that funding for this program 
should be continued.

                               INDONESIA

    The Committee appreciates the Indonesian Government's 
efforts to combat terrorism, and deplores the recent bombing of 
the Indonesian parliament. The Committee is pleased that 
suspected Islamic militants continue to be apprehended and that 
ammunition, chemicals and explosives were recently seized by 
the Indonesian police. The Committee supports the continued 
provision of counterterrorism [CT] assistance to a police CT 
unit. The Committee recognizes the serious danger Jemaah 
Islamiya poses to Indonesian and American interests in that 
region.
    The Committee remains concerned with the situation in Aceh 
and reports of internally displaced persons that are being 
prevented by the Indonesian military from receiving 
humanitarian assistance from international relief 
organizations. The Committee expects the State Department to 
use its influence with the Indonesian government to ensure that 
relief and human rights organizations receive unimpeded access 
to this area. The Committee believes that this conflict will 
only be resolved through a political process, and urges 
Indonesian President Megawati Sukarnoputri to use maximum 
restraint in military operations in Aceh in order to safeguard 
the lives of innocent civilians.
    The Committee continues to closely follow progress in the 
investigation into the attack in Papua on August 31, 2002 that 
murdered Americans Ted Burgon and Rick Spier and Indonesian 
Bambang Riwanto. The Committee expects President Megawati to 
use the full authority of her office to bring to justice the 
perpetrators of this crime. The Committee is also concerned 
that the Ad Hoc Human Rights Court on East Timor has failed to 
deliver justice for crimes committed by the Indonesian military 
against the people of East Timor. The Committee expects the 
Indonesian Government to cooperate with the U.N.-East Timor 
Serious Crimes Unit.
    The Committee is deeply disappointed by President 
Megawati's lack of effort and interest to promote political, 
economic, legal and military reforms in Indonesia. This failure 
of leadership may empower segments of Indonesian society 
disinterested in reforms, including Islamic extremists and the 
Indonesian military, which could have adverse effects on 
regional security and stability.
    The Committee remains concerned that a large portion of the 
Indonesian military's budget comes from business enterprises, 
including illegal activities, which contributes significantly 
to corruption within the armed forces. The Committee has 
continued conditions on FMF and licenses for export of lethal 
defense articles for the Indonesian armed forces.
    The Committee expects the State Department to provide 
increased assistance for democracy and rule of law programs in 
Indonesia, and believes that President Megawati must not allow 
upcoming parliamentary and presidential elections to become 
missed opportunities in that country's political democratic 
development.

                                  IRAN

    The Committee remains concerned with Iran's intention to 
develop capabilities to produce weapon-grade fissile material 
that could be used in nuclear weapons, and with reports of the 
final testing of the Shahab-3 missile, which has a range that 
endangers American troops in the Gulf and threatens the 
security of Israel. The Committee strongly encourages the 
administration to take effective measures to address this clear 
and present danger.
    The Committee is also concerned with Iran's potential 
influence on emerging political processes in Iraq and on Iraqi 
public opinion toward the Coalition. The Committee notes that a 
stable and prosperous Iraq is in the interests of all Middle 
East countries.
    The Committee supports the efforts of those in Iran seeking 
political and economic freedom, and has again provided the 
authority for funding of programs and activities to advance 
democracy and human rights in Iran.

                                  IRAQ

    The Committee provided $2,475,000,000 for relief and 
reconstruction assistance for Iraq in Public Law 108-11. The 
Committee provides authority to use ESF funds in this Act for 
assistance for Iraq, and an additional $6,500,000 for democracy 
programs for Iraq is made available from the Bureau of East 
Asia and Pacific's ASEAN Regional and Regional Democracy 
accounts. Given that Bureau's consistent lack of support for 
democracy activities in Asia, the Committee believes that these 
funds are better spent in Iraq.
    The Committee directs the State Department to report within 
90 days after enactment of this Act on plans to dispose of 
equipment and other material assistance (for which title is 
vested in the Government of the United States) provided through 
previous Foreign Operations Appropriations Acts to opposition 
Iraqi groups. The Committee believes that such equipment--or 
proceeds from the sale thereof--may be useful to reconstruction 
efforts in Iraq.
    The Committee strongly believes that, to the maximum degree 
possible, American companies and expertise should be utilized 
in the reconstruction of Iraq. In awarding contracts and 
subcontracts, USAID and its prime contractors should give 
preference to American companies and should set aside a portion 
of work for minority and disadvantaged businesses including 
8(a) certified companies.
    The Committee has included a provision which calls for the 
use of funds appropriated for Iraq in this Act or prior 
appropriations Acts for the removal and safe disposal in Iraq 
of unexploded ordnance, low level radioactive waste such as 
depleted uranium, and other environmental hazards. The 
Committee believes that the health and environmental dangers 
posed by these remnants of war should be promptly and properly 
disposed of to avoid further casualties.
    The Committee believes that vocational training for Iraqi 
youth is an essential element in efforts to rebuild that 
country's educational system, and to establish and maintain 
stability in Iraq. The Committee notes that the U.S. Job Corps 
program may serve as an appropriate and effective model in 
preparing Iraqi youth for the workforce, and recommends that 
USAID and the State Department consider support for vocational 
training programs in Iraq.

                                 KENYA

    The Committee recommends at least $10,000,000 from the ESF 
account for assistance for Kenya, and commends the democratic 
transition taking place in that country. The Committee believes 
that additional assistance is warranted to consolidate the 
achievements of the December 2002 polls that brought in new 
leadership committed to Kenya's democratic and economic 
development--and to combat HIV/AIDS. The Committee directs that 
additional assistance be provided for democracy and governance 
programs and activities.

                                  LAOS

    The Committee recommends that USAID provide $2,000,000 in 
Child Survival and Health Programs Fund and Development 
Assistance to Laos--one of the world's poorest and most 
repressive countries--through non-governmental organizations. 
The Committee intends that these funds will not be used to 
offset or substitute INL funding that would otherwise go to 
Laos.
    The Committee is concerned by the actions of the regime in 
Laos, which continues to be responsible for serious human 
rights abuses. The Committee is also concerned by the recent 
detention and trial of an American citizen and two foreign 
journalists in Laos. While the Committee is pleased that these 
individuals have recently been released, it is deeply troubled 
that the fate of four Laotian citizens accompanying the 
journalists is still unknown.

                                LEBANON

    The Committee believes that economic development in Lebanon 
should be a priority for United States foreign policy in the 
Middle East, and provides $35,000,000 in ESF assistance for 
Lebanon. However, assistance for the central Government of 
Lebanon is subject to prior notification.
    The Committee supports the work of American educational 
institutions in Lebanon and provides not less than $4,000,000 
for scholarships and direct support of these institutions.
    The Committee is deeply disappointed that past efforts to 
secure the return of American children abducted to Lebanon have 
been unsuccessful. The Committee is aware of cases in which the 
Lebanese Government has failed to enforce the orders of the 
Lebanese civil courts. These unresolved cases will continue to 
be an obstacle to closer relations between the United States, 
Lebanese and Syrian governments. The Committee calls on the 
Lebanese Government to ensure that the rule of law is upheld.

                                LIBERIA

    The Committee is disturbed by reports of al-Qaeda and other 
Middle Eastern terrorists in Liberia for the purposes of buying 
gemstones, and shares the widespread international criticism of 
Liberian President Charles Taylor for his corrupt and 
repressive rule. The Committee strongly supports programs and 
activities that promote human rights, democracy and the rule of 
law in Liberia, and encourages greater linkages between 
Liberian opposition political parties and civil society and 
American organizations and academic institutions. The Committee 
notes the courageous work of NGOs in Liberia, such as the 
Archdiocese of Monrovia and the Justice and Peace Commission 
chaired by Archbishop Michael Kpakala Francis.
    The Committee encourages the State Department to be 
prepared to address a wide range of political and economic 
development issues, should Charles Taylor abdicate power.

                                MOLDOVA

    The Committee notes with concern irregularities that marred 
recent elections in Moldova, including the arrest and 
harassment of opposition candidates, intimidation and 
suppression of independent media, and state run media bias in 
favor of candidates backed by the Moldovan Government. The 
Committee condemns efforts to reverse economic, political, 
media and judicial reforms, and is wary of authoritarian 
recidivism in Moldova.
    The Committee requests the State Department to provide 
increased assistance to democracy and media programs in 
Moldova.

                                MONGOLIA

    The Committee supports full funding for the budget request 
for Mongolia, and intends to continue to closely follow 
political developments in that country. The Committee is 
troubled by the actions of the Mongolian Government late last 
year to crack down on peaceful demonstrators in Ulaan Baatar 
and to restrict freedom of the press.
    The Committee observes with concern the economically 
destabilizing demands by the Russian Federation on Mongolia to 
settle inflated debt claims. The Committee views these demands 
as an extortionate attempt to force Mongolia to pay for the 
cost of its occupation by the former Soviet Union from 1922 to 
1992.

                                 NEPAL

    The Committee condemns the acts of terrorism waged by 
Maoist rebels against the people of Nepal, and calls for 
continued efforts to secure a political solution to the ongoing 
conflict. The Committee underscores the importance of providing 
human rights education and training to military and police 
personnel, and expects the Nepalese government to conduct 
credible investigations and prosecutions of those responsible 
for human rights violations against innocent civilians.

                               NICARAGUA

    The Committee believes that President Enrique Bolanos of 
Nicaragua deserves strong support for launching a courageous 
anti-corruption campaign, including issuing indictments against 
the former President, several of his closest relatives and 
associates and many high ranking former government officials. 
The Bolanos government has worked with the assistance of the 
Department of Justice on several of these investigations. 
Despite these welcome steps, Nicaragua remains among the most 
severely impoverished countries in this hemisphere. 
Unemployment is widespread. Subsistence farmers are facing 
increased hardships. The collapse in coffee prices has 
exacerbated an already dire situation. The Committee requests 
USAID and the State Department to review United States 
assistance programs for Nicaragua with a view toward more 
substantially and effectively addressing these urgent needs, 
and to consult with the Committee as it prepares its fiscal 
year 2005 budget request for Nicaragua.
    The Committee recognizes the important work of the Fabretto 
Children's Foundation, which provides essential opportunities 
for children in Nicaragua to escape poverty. The Committee 
recommends that USAID provide up to $2,600,000 to support the 
Fabretto Education for Employment Initiative.

                                NIGERIA

    The Committee notes that the April 2003 presidential 
elections in Nigeria marked the first transfer of power from 
one civilian government to another in that country's history. 
However, the Committee believes that this strategically 
important West African nation has much progress to make in 
entrenching democracy (as demonstrated by the widespread 
reports of irregularities and fraud during the recent 
elections), the rule of law and increasing respect for human 
rights.
    As few of Nigeria's nascent political parties were 
established prior to 2002, the Committee directs USAID to 
adequately fund programs that strengthen political parties in 
Nigeria. In addition, the Committee supports activities 
targeted toward the development of a vibrant civil society in 
Nigeria that will promote transparency and accountability 
within that country.
    The Committee remains concerned with the human rights 
situation in Nigeria, particularly with abuses committed by the 
Nigerian armed forces. The Committee believes that progress by 
the Nigerian Government to hold accountable those in the armed 
forces responsible for violations would help demonstrate a 
commitment to human rights and build confidence in the United 
States-Nigerian security assistance relationship. The Committee 
commends the administration's careful approach to security 
assistance for Nigeria, in accordance with section 557 of 
Public Law 108-7, and has included an identical provision in 
this Act.

                              NORTH KOREA

    The Committee condemns North Korea for its continued 
belligerence, and recognizes the growing threat to the region 
posed by North Korea's nuclear program, narcotics trafficking, 
and proliferation of weapons and weapons technology. The 
Committee directs the State Department to submit a report to 
the Committee, in classified form if necessary, no later than 
90 days after enactment of this Act on the extent of North 
Korea's narcotics trafficking (including countries impacted or 
directly, or indirectly, involved in the drug trade), a listing 
of nations or organizations that have requested or received 
North Korean weapons or weapons technology, and the 
implications of a North East Asia nuclear arms race.
    The Committee remains concerned with the plight of the 
North Korean people, and directs the State Department to 
increase assistance programs that provide humanitarian relief 
to North Korean refugees. The Committee again recommends the 
State Department and USAID to provide $10,000,000 to safeguard 
the human rights and dignity of North Korean refugees and 
asylum seekers, whether through the establishment of camps, 
contributions to organizations, or other means.

                                PAKISTAN

    The Committee appreciates the continued efforts of the 
Government of Pakistan to combat international terrorism, and 
encourages greater investment by Pakistan in programs that 
deprive and undermine support for extremists. The Committee 
notes that these activities include increased security and 
patrolling of Pakistan's borders, and contributions to health, 
education, good governance, democracy, and rule of law 
programs.
    While the Committee supports the budget request for 
Pakistan, it recommends continued vigilance by USAID and the 
State Department on the use of United States foreign assistance 
in Pakistan.
    The Committee is troubled by reports of Taliban activity 
inside of Pakistan's borders, and shares the concerns of Afghan 
President Hamid Karzai that cross-border attacks contribute to 
an insecure environment in Afghanistan.
    The Committee provides that, of the funds made available 
under the heading Economic Support Fund, not less than 
$10,000,000 should be made available to support programs and 
activities conducted by indigenous organizations that seek to 
further educational, health, employment, and other 
opportunities for the people of Pakistan. The Committee 
provides $4,000,000 for programs implemented by the Pakistan 
Human Development Fund, and $1,000,000 for education programs 
conducted by the Amanut Society.

                              SIERRA LEONE

    The Committee notes that the United States has devoted 
substantial resources to help bring stability and relief to 
Sierra Leone through the United Nations Mission in Sierra Leone 
and Operation Focus Relief. Accordingly, the Committee believes 
that this progress should be enhanced through additional 
assistance for Sierra Leone, targeted to improve access to 
education, reduce poverty, and combat corruption. The Committee 
requests USAID to consult with the Committee on the feasibility 
of establishing a mission in Sierra Leone to more effectively 
implement and monitor United States assistance programs.
    The Committee commends the work of the Special Court for 
Sierra Leone, which has moved swiftly and efficiently to indict 
key figures--including Charles Taylor--alleged to be 
responsible for atrocities in Sierra Leone and to facilitate 
the reconciliation process in that country. The Committee 
continues to believe that Charles Taylor should be brought to 
justice before the Special Court.
    While the United States has fulfilled its contribution to 
the Special Court, the Committee notes that the State 
Department, in prior fiscal years, ignored directives from 
Congress to accelerate the funding schedule for its 
contribution in order to more effectively meet the front-loaded 
costs of establishing the Court. As a result, there are key 
areas, including security, transportation, and outreach, that 
remain seriously under-funded. Because of this and the fact 
that the Special Court could become a successful model for 
prosecuting others accused of war crimes elsewhere, the 
Committee has provided $2,500,000 to help meet these costs. The 
Committee expects that these funds will not come from ESF funds 
that would otherwise be available for Africa.

                                THAILAND

    The Committee condemns the Thai Government's crack down on 
Burmese democracy activists in Thailand, and deplores the 
deportation of Burmese to Burma. The Committee is concerned 
with the fate of these individuals at the hands of the 
repressive military junta.
    The Committee is alarmed at reports of Thai authorities 
hampering the delivery of humanitarian assistance to Burmese 
seeking refuge in Thailand. The Committee expects the State 
Department to more aggressively engage the Thai Government in 
order that the plight of people in Thailand who have fled 
political, economic, and ethnic repression is more effectively 
addressed.
    While the manufacturing and trafficking of narcotics in 
Burma directly and substantially contributes to Thailand's drug 
crisis, the Committee shares the State Department's concern 
with extra-judicial killings associated with Thailand's 
campaign against narcotics traffickers and drug users. The 
Committee counsels Thailand's elected leaders to respect the 
rule of law in the conduct of anti-narcotics programs and 
activities.

                                 TIBET

    The Committee recommends $3,000,000 in ESF assistance for 
programs that provide training and education to Tibetans in 
democracy and human rights, preserve cultural traditions, and 
promote economic development and environmental conservation in 
the Tibetan Autonomous Region and in other Tibetan communities 
in China where such activities are underway. The Committee 
believes that the Office of the Special Coordinator for Tibetan 
Issues should be closely consulted on the allocation of these 
funds. The Committee is aware of the unique role of the Bridge 
Fund and the work that The Mountain Institute and other groups 
have provided to support local livelihoods and educational, 
cultural, and natural resource conservation projects in Tibet. 
The Committee urges the administration to support the Bridge 
Fund and other organizations with a proven track record working 
in Tibet.

                                 UGANDA

    The Committee is aware of Uganda's support to combat 
international terrorism, as well as its ongoing struggle 
against the Lord's Resistance Army [LRA], which is designated 
as a foreign terrorist organization by the State Department. 
The Committee encourages the State Department to consider 
providing non-lethal, counter-terrorism surveillance assistance 
for Uganda.
    The Committee commends efforts to formulate a strategy to 
mitigate the humanitarian crisis in Northern Uganda which has 
killed or displaced hundreds of thousands of Ugandan and 
Sudanese civilians. The Committee recognizes that security 
conditions have severely hampered humanitarian relief efforts 
and urges the State Department to work with Acholi religious 
leaders and others to help facilitate a peaceful resolution to 
the 16-year old conflict. The Committee believes that, if 
security conditions permit, USAID should significantly increase 
funding from Disaster Assistance, the Famine Fund, and other 
accounts to meet critical humanitarian needs. The Committee 
requests to be consulted on this issue by USAID within 60 days 
after enactment of this Act.
    The Committee is increasingly concerned about the slow pace 
of democratic reform in Uganda, and expects the administration 
to make this a priority in its relations with the Museveni 
government and to support the development of democratic 
political parties in Uganda.

                   INTERNATIONAL DISASTER ASSISTANCE

Appropriations, 2003....................................    $288,115,000
Emergency supplemental..................................     143,800,000
Budget estimate, 2004...................................     235,500,000
Committee recommendation................................     235,500,000

    The Committee provides $235,500,000 for International 
Disaster Assistance programs, which is equal to the budget 
request. The Committee expects these funds to be used to meet 
the urgent needs of humanitarian emergencies, including in 
Afghanistan and Iraq.
    The Committee is disappointed that USAID has done little to 
implement section 3013 of Public Law 107-171 concerning the 
nutrient content of United States food aid. The Committee notes 
that USAID may be funding ``food aid development and 
enhancement projects'' pursuant to section 3013, and is 
concerned that these projects may have little to do with 
improving standards and controls for nutrient quality and 
content. The Committee believes that one approach to improving 
performance is to have USAID's Office for Food for Peace 
administer this program. The Committee also urges USAID to work 
with SUSTAIN to follow up on the issues highlighted in the 2001 
Compliance Review, which was specifically mentioned in section 
3013.

                              FAMINE FUND

Appropriations, 2003....................................................
Budget estimate, 2004...................................    $200,000,000
Committee recommendation................................     100,000,000

    The Committee provides $100,000,000 for famine prevention 
and relief, including for the mitigation of the effects of 
famine.

                         TRANSITION INITIATIVES

Appropriations, 2003....................................     $49,675,000
Budget estimate, 2004...................................      55,000,000
Committee recommendation................................      55,000,000

    The Committee continues to support the work of USAID's 
Office of Transition Initiatives [OTI], which is on the ground 
in countries around the world providing essential assistance to 
bridge the gap between emergency relief and long-term 
development.
    The Committee recognizes OTI's important contributions to 
reconstruction efforts in Iraq.

                      DEVELOPMENT CREDIT AUTHORITY

                           OPERATING EXPENSES

Appropriations, 2003....................................      $7,542,000
Budget estimate, 2004...................................       8,000,000
Committee recommendation................................       8,000,000

     PAYMENT TO THE FOREIGN SERVICE RETIREMENT AND DISABILITY FUND

Appropriations, 2003....................................     $45,200,000
Budget estimate, 2004...................................      43,859,000
Committee recommendation................................      43,859,000

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

   OPERATING EXPENSES OF THE UNITED STATES AGENCY FOR INTERNATIONAL 
                              DEVELOPMENT

Appropriations, 2003....................................    $568,282,000
Emergency supplemental..................................      24,500,000
Budget estimate, 2004...................................     604,100,000
Committee recommendation................................     604,100,000

    The Committee provides $604,100,000 for operating expenses 
of the United States Agency for International Development. The 
Committee remains concerned about USAID's deficient financial, 
procurement, and personnel management systems, and recognizes 
that solving these problems will be costly. The Committee is 
also concerned that USAID is severely understaffed and is 
unable to effectively implement its programs. The Committee 
expects the fiscal year 2005 budget request to address this 
problem.

                        CAPITAL INVESTMENT FUND

Appropriations, 2003....................................     $42,721,000
Budget estimate, 2004...................................     146,300,000
Committee recommendation................................     100,000,000

    The Committee provides $100,000,000 for the Capital 
Investment Fund. The Committee expects priority to be placed on 
overseas requirements in Cambodia, Uganda, Guinea, Armenia, and 
Mali.

       OPERATING EXPENSES OF THE OFFICE OF THE INSPECTOR GENERAL

Appropriations, 2003....................................     $33,084,000
Budget estimate, 2004...................................      35,000,000
Committee recommendation................................      35,000,000

    The Committee provides $35,000,000 for operating expenses 
of the Office of the Inspector General.

                  Other Bilateral Economic Assistance


                         ECONOMIC SUPPORT FUND

Appropriations, 2003....................................  $2,255,244,000
Emergency supplemental..................................   2,422,000,000
Budget estimate, 2004...................................   2,535,000,000
Committee recommendation................................   2,415,000,000

                         MIDDLE EAST COUNTRIES

    In 1998, the United States reached agreements with the 
Governments of Israel and Egypt to reduce the levels of ESF 
assistance for these countries over a 10-year schedule. In 
accordance with this schedule, the Committee provides 
$480,000,000 for Israel and $575,000,000 for Egypt for fiscal 
year 2004. The Committee provides $250,000,000 for assistance 
for Jordan, which reflects the amount requested by the 
administration. The Committee supports $75,000,000 for 
assistance to the Palestinian people in the West Bank and Gaza, 
as requested by the administration, and notes that restrictions 
on the use of funds provided under the Act remain unchanged 
from prior years.
    The Committee remains concerned with the situation in the 
Middle East, and, in particular, with the welfare of the 
Israeli and Palestinian people. The Committee encourages 
continued efforts by all parties to achieve lasting peace in 
the region.
    The Committee believes that political, legal, and economic 
reform programs should continue in the West Bank and Gaza. The 
Committee recognizes that calls for reform already exist within 
Palestinian civil society, and supports the provision of 
assistance to those groups and associations, including from the 
United States, advocating greater transparency, accountability, 
and political pluralism. The Committee notes that rule of law 
programs would enhance these reforms and provides that 
$1,000,000 should be used to further legal reforms in the West 
Bank and Gaza.
    The Committee recognizes that Egypt is a vital and 
strategic ally of the United States and plays an important role 
in the Middle East peace process. However, the Committee 
remains concerned with challenges to the rule of law, human 
rights, and democracy in Egypt. The Committee commends the 
State Department for undertaking a review of assistance 
programs for Egypt.
    The Committee regrets that the U.S.-Israel Cooperative 
Development Program will no longer by funded, and urges USAID 
to explore ways of continuing to utilize the expertise 
accumulated by this program, including that of Israel's Center 
for International Cooperation [MASHAV]. The Committee also 
supports the ongoing Cooperative Development Research programs 
and the CDR/Central Asian Republic program, and expects that 
these activities will be funded at their current levels.
    The Committee supports the efforts of the International 
Arid Lands Consortium to make arid and semi-arid lands more 
productive and habitable. The Committee recommends that up to 
$2,500,000 be provided to the Consortium for programs in, among 
other countries, Afghanistan, Pakistan, Iraq, and India.
    The Committee requests USAID to provide funding for the 
First Regional Cooperative Program for Health to be conducted 
by the Hebrew University's Kuvin Center and Al-Quds University.

                   MIDDLE EAST PARTNERSHIP INITIATIVE

    The Committee supports the budget request of $145,000,000 
for the Middle East Partnership Initiative, including for 
scholarships for needy Muslim students at the American 
University of Beirut.

                           DEMOCRACY PROGRAMS

    The Committee strongly supports democracy programs and 
activities conducted by nongovernmental organizations. In 
particular, the Committee supports programs that strengthen 
democratic political parties, develop an active civil society, 
and promote legal reforms and free markets.
    The Committee believes that linkages between democracy and 
development are undeniable. While United States foreign 
assistance serves many purposes, its uses are maximized when 
foreign governments have the political will--checked by a loyal 
opposition, active civil societies, and responsible press--to 
apply that aid in an effective and transparent manner in which 
it was intended to be used. The impact of any assistance, 
however well intention or delivered, is severely restricted in 
countries burdened by authoritarian and corrupt leadership--
such as in Zimbabwe, Burma and Cambodia. In those countries, 
democracy promotion should be the top priority for both the 
State Department and USAID.
    The Committee recognizes that in addition to sufficient 
funding, furthering freedom abroad requires long term 
commitment and vigilance by donors and implementers. The role 
of the State Department, in particular, is critical in ensuring 
that voices calling for freedoms are not silenced in closed and 
transitional countries. The Committee recommends that the State 
Department and USAID more thoroughly include democracy 
promotion in country strategies, and better coordinate 
activities among various Bureaus to ensure consistency in the 
implementation and support of these programs. The Committee 
expects the State Department to take an active, principled, 
forceful, and public position in those countries where 
democracy activists are threatened.
    As in fiscal year 2003, the Committee remains concerned 
with the inconsistent application of democracy programs by the 
State Department and USAID, and the lack of coordination of 
these programs within, and between, the agencies. The Committee 
again recommends that the State Department and USAID centralize 
oversight and coordination of democracy programs within the 
Bureau of Democracy, Human Rights, and Labor. The Committee 
also recommends that grants and cooperative agreements be the 
preferred funding mechanism for democracy promotion efforts.
    The Committee suggests that nongovernmental organizations 
be utilized to a greater extent in the promotion of democracy 
abroad, and recognizes the important contributions to the cause 
of freedom made by, among other organizations, the National 
Democratic Institute, the International Republican Institute, 
the Center for International Private Enterprise, the 
International Foundation for Elections Systems, the American 
Center for International Labor Solidarity, the National 
Endowment for Democracy, and Partners for Democratic Change.
    The Committee notes the success of USAID's CEPPS mechanism 
as a means of funding democracy programs, and recommends that 
it be utilized to a greater extent in the future. The Committee 
directs that CEPPS core funds be increased over prior year 
levels in order to allow USAID to respond more quickly and 
effectively to urgent democracy building opportunities. The 
Committee requests USAID to report to the Committee not later 
than 90 days after enactment of this Act on anticipated 
contributions to the CEPPS funding mechanism from all accounts.

                          CONFLICT RESOLUTION

    The Committee provides $15,000,000 in ESF and SEED funds to 
support conflict resolution programs and activities which bring 
together individuals of different ethnic, religious, and 
political backgrounds from areas of civil conflict and war. The 
Committee notes the strong bipartisan congressional and public 
interest in programs which promote understanding and 
reconciliation in the Middle East and elsewhere, and intends 
that the State Department and USAID will establish an efficient 
and effective mechanism for evaluating and funding proposals 
for the use of these funds. The Committee believes that the 
following organizations are among those deserving of 
consideration and support--
  --The Arava Institute for Environmental Studies, which 
        manages programs that bring college age Arabs and 
        Israelis together to promote better relations and solve 
        common environmental problems;
  --Seeds of Peace, a widely respected organization which 
        promotes understanding between teenagers in the Middle 
        East, Cyprus, and the Balkans;
  --Jerusalem International YMCA, which brings together 
        Christian, Jewish and Muslim youth in a positive 
        environment that promotes peace, respect and 
        understanding;
  --The International Crisis Group, whose reports analyze the 
        causes of conflict and whose recommendations assist in 
        the formulation of policies and programs by the United 
        States, United Nations, and others;
  --Center for Human Dignity Museum of Tolerance Jerusalem (a 
        Simon Wiesenthal Center project), which will promote 
        greater awareness of racism, bigotry, anti-Semitism and 
        intolerance through both historical and contemporary 
        contexts; and
  --Interns for Peace, which unites youth, women and diverse 
        ethnic groups in cooperative development in the Middle 
        East and elsewhere.
    The Committee provides $3,000,000 to support the Foundation 
for Security and Sustainability, a public institute chartered 
to further understanding about resource scarcity and 
environmental problems and provide opportunities to avert and 
better prepare for potential crises.

                      TERRORISM IN SOUTHEAST ASIA

    The Committee remains concerned with the ability of 
terrorists to gain footholds in Muslim communities throughout 
Southeast Asia, including in Indonesia, Malaysia, southern 
Thailand, the Philippines, and Cambodia. The Committee strongly 
recommends USAID and the State Department to fund programs that 
bolster the efforts of Asian democratic political parties, 
nongovernmental organizations and individuals to further 
economic, political, social and legal reforms that may serve as 
a bulwark against terrorism.
    The Committee expects that not less than $2,000,000 be made 
available to support the Alliance for Reform and Democracy in 
Asia [ARDA]. The Committee commends the membership of ARDA for 
their collective commitment to further freedom and liberty 
throughout Asia.

                          WAR CRIMES TRIBUNALS

    The Committee continues to support the war crimes tribunals 
in Yugoslavia, Rwanda, and Sierra Leone. The Committee expects 
the administration to ensure that the tribunals have sufficient 
budgets, staff, and equipment, and provides $30,000,000 in 
drawdown authority for war crimes tribunals established or 
authorized by the U.N. Security Council with U.S. support, 
including the tribunal in Sierra Leone. The Committee also 
urges the administration, where appropriate, to support 
commissions or judicial bodies that complement the activities 
of these tribunals. The Committee notes that drawdowns made 
under this section are unrelated to the establishment of an 
international criminal court.
    The Committee notes that in Public Law 108-11, Congress 
appropriated $10,000,000 for a contribution to an Iraq War 
Crimes Tribunal or investigations into allegations of war 
crimes, crimes against humanity, or genocide committed by 
Saddam Hussein or other Iraqis. The Committee requests the 
State Department to inform the Committee about the status of 
these funds no later than 30 days after enactment of this Act.

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

    The Committee provides $25,000,000 for programs and 
activities which foster democracy, human rights, civic 
education, women's development, press freedoms, and the rule of 
law in countries with a significant Muslim population. Of these 
funds, the Committee provides $15,000,000 for the Human Rights 
and Democracy Fund of the Bureau of Democracy, Human Rights and 
Labor and $5,000,000 for the National Endowment for Democracy. 
The Committee again includes $3,000,000 for professional 
training for journalists.

                       FREE AND INDEPENDENT MEDIA

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

                           CONFLICT DIAMONDS

    The Committee notes that important steps have recently been 
taken, including the establishment of the Kimberley Process 
Certification Scheme [KPCS] and the enactment of the Clean 
Diamond Trade Act [CDTA], to curtail the flow of conflict 
diamonds. Despite this progress, much more needs to be done to 
fully implement the CDTA, ensure that the KPCS is effective and 
prevent revenue from both rough and polished diamonds from 
contributing to conflict.
    The Committee believes that one of the immediate goals of 
the United States and the international community should be to 
strengthen KPCS, which is in need of resources to better 
address issues central to the Kimberley process, including 
monitoring, membership criteria, statistics collection, and 
coordination. In fiscal year 2003, Congress provided funds to 
help implement and enforce KPCS but believes that more 
assistance will be required to make KPCS a viable mechanism to 
effectively inhibit the flow of conflict diamonds. The 
Committee provides $2,500,000 for this purpose for fiscal year 
2004 and urges the administration to request funding for this 
purpose next year.
    The Committee urges foreign governments, the diamond 
industry, and NGOs to make substantial contributions to ensure 
the success of the KPCS and other measures to curb the trade in 
conflict diamonds.
    The Committee is aware that regulations pursuant to the 
CDTA must be issued, implemented, and reviewed by the Kimberley 
Process by July 31, 2003 in order for the United States to 
effectively participate in the KPCS. The Committee believes 
that is extremely important that this deadline is met.

                  PARTNERSHIP TO ELIMINATE SWEATSHOPS

    The Committee supports the Partnership to Eliminate 
Sweatshops, which facilitates cooperation among corporations, 
consumers, non-governmental organizations, universities, 
organized labor, and others to address unacceptable working 
conditions around the world through a variety of approaches. 
The Committee recommends that $3,000,000 be made available for 
this program.

                         GLOBAL AIDS INITIATIVE

Appropriations, 2003....................................................
Budget estimate, 2004...................................    $450,000,000
Committee recommendation................................     700,000,000

    The Committee provides $700,000,000 for the Global AIDS 
Initiative [GAI], of which up to $250,000,000 may be made 
available for a United States contribution to the Global Fund 
to Fight AIDS, Tuberculosis and Malaria. This is an increase of 
$150,000,000 above the budget request and equivalent to the 
fiscal year 2003 level.
    The Committee provides $150,000,000 for the International 
Mother and Child HIV Prevention Initiative under this account.
    Of the funds made available under the GAI, not more than 
$8,000,000 is made available for administrative expenses of the 
office of ``Coordinator of United States Government Activities 
to Combat HIV/AIDS Globally'' at the State Department. The 
Committee expects that the budget submission for the State 
Department for fiscal year 2005 will include funding for the 
administrative costs of the Coordinator's office as part of the 
Department's request for ``Diplomatic and Consular Programs.''

          ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC STATES

Appropriations, 2003....................................    $521,587,000
Budget estimate, 2004...................................     435,000,000
Committee recommendation................................     445,000,000

    The Committee provides $445,000,000 for Eastern Europe and 
the Baltic States, which is $10,000,000 above the budget 
request. While the Committee supports and encourages the 
graduation of countries from receiving U.S. foreign assistance, 
several countries in this region, which are vital to U.S. 
interests, continue to require substantial support to further 
implement critically needed democratic reforms and to promote 
economic development.

              INTERNATIONAL LEGAL AND ECONOMIC INITIATIVES

    The Committee supports the efforts of the American Bar 
Association [ABA] and its CEELI programs to strengthen 
democracy and the rule of law in Central and Eastern Europe. 
The Committee expects funding for CEELI's programs to remain at 
not less than the funding level provided in fiscal year 2003, 
and recommends that these programs continue to be funded only 
through cooperative agreements. The Committee requests that the 
State Department and USAID consider providing $2,000,000 for 
the renovation of the CEELI Institute in Prague.
    The Committee notes the work of the Center for Economic 
Research and Graduate Education Institute, which promotes 
economic growth and reform in Central and Eastern Europe.

                                 KOSOVO

    The Committee continues to support reconstruction, reform, 
and reconciliation efforts in Kosovo, and recommends that not 
less than $85,000,000 should be made available for assistance 
for Kosovo under the heading Assistance for Eastern Europe and 
the Baltic States.

                             YOUTH PROGRAMS

    The Committee provides that not less $1,000,000 should be 
made available for a program to promote greater understanding 
and interaction among youth in Albania, Kosovo, Montenegro and 
Macedonia. Given the success of its women's development program 
in Kosovo, the Committee expects the National Albanian American 
Council to conduct this program.

                                 SERBIA

    The Committee is pleased that reform efforts in Serbia were 
not adversely impacted by the murder of Prime Minister Zoran 
Djindjic earlier this year, as some had ominously predicted. 
The Committee urges Serbian authorities to continue and 
accelerate political, economic, legal and military reforms that 
are essential to Serbia's long term recovery and reconciliation 
with its neighbors.
    The Committee notes that some progress has been made in 
cooperating with the International Criminal Tribunal for the 
Former Yugoslavia [ICTY], but believes that more must be done. 
All remaining indictees should be arrested and transferred to 
The Hague, including Radtko Mladic, and access to archives and 
witnesses should not be obstructed or delayed. The Committee is 
willing to reconsider the annual certification contained in 
this Act if, by the date of conference with the House of 
Representatives, substantial progress is made in cooperating 
with ICTY, including the apprehension and transfer of Mr. 
Mladic to The Hague.
    The Committee commends the political will demonstrated by 
Serbian authorities in the crackdown against organized crime. 
The Committee underscores the need to afford those arrested all 
rights and responsibilities guaranteed under Serbian law.
    The Committee is concerned that almost 3 years after Serbia 
chose the path of democracy, the Serbian Government has no 
strategy for ensuring that independent media can function 
effectively and efficiently. The Committee believes that the 
new Public Information Act should be modified to address 
several provisions which may result in unwarranted press 
censorship and that the transfer of ownership of state-owned 
media needs to be expedited. The Committee also notes that 
there is no agency to regulate the distribution of radio 
frequencies and television channels.
    The Committee expects that State Department to continue to 
consult with the Committee on linkages between Yugoslav defense 
companies and the former regime in Iraq.
    Like last year, the Committee recommends increased 
assistance for Serbia, above the fiscal year 2004 request of 
$95,000,000 from the SEED account.

    ASSISTANCE FOR THE INDEPENDENT STATES OF THE FORMER SOVIET UNION

Appropriations, 2003....................................    $755,060,000
Budget estimate, 2004...................................     576,000,000
Committee recommendation................................     596,000,000

    The Committee provides $596,000,000 for Assistance for the 
Independent States of the Former Soviet Union, which is 
$20,000,000 above the budget request.

                                 RUSSIA

    The Committee is concerned that the administration's 
proposed $75,000,000 cut in foreign assistance for Russia will 
jeopardize the success of ongoing health, economic, political, 
and legal reform programs. The Committee recommends a more 
measured reduction of activities, and directs that not less 
than $93,000,000 be made available for assistance for Russia. 
This amount is $20,000,000 above the budget request. The 
Committee expects that a significant portion of this funding 
increase will be targeted toward democracy and rule of law 
programs in Russia.
    The Committee joins with the State Department in its 
condemnation of the harassment of Americans involved in 
cooperative programs in Russia by that country's security 
services. The Committee notes that the Peace Corps, 
coordinators of Russian Far East programs, and other groups and 
individuals involved in foreign assistance programs in Russia 
have been targets of official harassment.
    The Committee recommends that the State Department and 
USAID provide at least $1,000,000 for Communities for 
International Development, a new non-profit organization 
dedicated to promoting cooperative programs and activities 
between sister cities in the United States and Russia. The 
Committee supports activities that reinforce the Cooperative 
Threat Reduction Initiative and urges the relevant agencies to 
work to eliminate unnecessary overlap that may be occurring 
with respect to the implementation of these programs.

                            RUSSIAN FAR EAST

    The Committee is particularly disturbed by the potential 
impact of reduced assistance to successful economic development 
programs in the Russian Far East [RFE], and provides that 
$20,000,000 shall be made available solely for this region. The 
Committee also provides that not less than $3,000,000 shall be 
made available for technical assistance for the RFE. In 
conducting programmatic and other assessments, the Committee 
instructs USAID and the State Department to more closely 
consult its partners who have over a decade of development 
experience in the region.

                         PUBLIC HEALTH PROGRAMS

    The Committee is aware of the Primary Health Care 
Initiative of the World Council of Hellenes, which was 
instituted in the former Soviet republics to provide 
desperately needed basic health care. This program, which is 
alleviating suffering of people through thousands of visits 
each month, also enhances U.S. relations with these countries. 
The Committee recommends $2,500,000 for this program in fiscal 
year 2004, and directs that these funds be allocated by the 
State Department.
    The Committee continues to support the work of the Eurasian 
Medical Education program of the American College of 
Physicians, which relies on the volunteer partnership 
contribution of American physicians who share medical skills 
and knowledge with Russian physicians. The Committee expects 
that funding for this program in fiscal year 2004 will be at 
least the amount provided in fiscal year 2003.

                                ORPHANS

    The Committee continues to support USAID's Russian orphans 
strategy, which focuses on programs to reduce the number of 
children entering state orphanages and works with orphanage 
officials to meet the immediate medical and basic needs of 
these children. The Committee applauds the work of Holt 
International Children's Services and Mercy Corps 
International.
    The Committee supports the work of Kidsave International 
for Children of the Former Soviet Union, and expects that 
$200,000 will be provided to support interventions that help 
countries move children without parents into permanency.
    The Committee expects USAID to work with non-profit groups, 
especially those with contacts in the Russian Far East, 
including Rotary International, the Anchorage Interfaith 
Council, and the Municipality of Anchorage. The Committee 
recommends $7,000,000 for these groups in fiscal year 2004.

                     DEMOCRACY AND LEGAL EDUCATION

    The Committee strongly supports USAID's rule of law and 
human rights programs in Russia, which funds programs conducted 
by the Russian American Judicial Partnership and the Russian 
American Rule of Law Consortium. These cost effective 
activities--implemented through the volunteer services of 
hundreds of American lawyers, judges and law professors--have 
played a key role in the development of a more sound legal 
system which is critical to attracting and maintaining local 
and foreign investment that will enable a strong market economy 
to flourish. The Committee believes that as assistance to 
Russia declines, adequate funding to maintain these programs 
should be a high priority.
    The Committee also supports the USAID-funded program for 
distance learning legal education that has been initiated in 
the Central and East European region, and recommends continued 
funding for this program. The Committee is also aware of the 
potential to provide distance learning legal studies into 
Central Asia and urges USAID to expand the program to that 
region.
    The Committee notes the important work being done by 
American University-Central Asia in promoting stability, 
moderation and democratic values in Kyrgystan and throughout 
the region. The University's graduates will form the core of 
the next generation of leadership in Central Asian countries. 
The Committee supports funding for the University in fiscal 
year 2004 on a public-private matching basis.

                                ARMENIA

    The Committee provides $75,000,000 under the heading 
Assistance for the Independent States of the Former Soviet 
Union for assistance for Armenia, which is $25,500,000 above 
the budget request. The Committee appreciates the 
administration's efforts to graduate specific countries from 
receiving United States foreign assistance, but believes the 
$40,500,000 reduction proposed for Armenia in fiscal year 2004 
will prematurely terminate ongoing development programs.
    The Committee continues to closely follow political and 
economic developments in the region, particularly efforts to 
secure a peaceful resolution to the Nagorno-Karabakh conflict. 
The Committee reiterates its support for a mutually acceptable 
negotiated solution, and continues to endorse confidence-
building measures among all parties to the conflict.
    The Committee provides that $2,500,000 shall be made 
available for Armenia in the Foreign Military Financing 
account, and directs that not less than $900,000 be made 
available in International Military Education and Training 
funds. The Committee recommends that military assistance 
provided to Armenia be used to enhance communications 
capabilities. The Committee regrets that Armenia was not more 
supportive of Operation Iraqi Freedom.

                                UKRAINE

    While the Committee appreciates Ukraine's support of 
military operations in Iraq, it remains concerned with the 
democratic development of that county. The Committee notes that 
similar concerns were expressed by the people of Ukraine 
through demonstrations earlier this year calling for President 
Kuchma's resignation.
    The Committee notes the importance of the 2004 presidential 
election in Ukraine and the need for a free and fair electoral 
process. The Committee continues to strongly support the 
development of a multi-party system in that country, and 
expects the Ukrainian Government to permit political parties 
and civic organizations to conduct election observation 
activities to ensure the integrity of the polls. The Committee 
also urges Ukrainian authorities to register, without delay, 
international organizations seeking to support democratic 
institutions and processes. Moreover, the Committee believes 
that the Ukrainian Government should not be given the authority 
by USAID or the State Department to approve, interfere with, or 
shape U.S. democracy assistance programs.
    The Committee commends the State Department for reassessing 
assistance for Ukraine, and renewed emphasis on democracy and 
rule of law programs. The Committee remains concerned with an 
investment climate that is less than favorable to foreign 
businesses, particularly the lack of transparency and fair 
resolution of business disputes.
    The Committee provides not less than $20,000,000 shall be 
made available for nuclear reactor safety initiatives, of which 
$14,000,000 should be for simulator-related projects. The 
Committee notes these safety programs are in the security 
interests of the United States. The Committee again provides 
funding for coal mine safety programs.

                                GEORGIA

    The Committee provides $75,000,000 for assistance for 
Georgia. The Committee strongly supports continuation of 
successful programs targeted toward enhancing border security, 
and recommends that the State Department provide sufficient 
funding for the democracy and rule of law programs.
    The Committee remains concerned about mob attacks against 
non-Orthodox religious communities in Georgia, and is troubled 
by the apparent inability or unwillingness of the Georgian 
Government to ensure the safety of religious groups. The 
Committee expects the Georgian Government to stop these 
attacks, and to arrest and punish those responsible. In 
addition, the Committee urges the State Department to raise 
this matter with relevant Georgian authorities. Progress on the 
protection of religious freedom in Georgia must be measured by 
concrete actions, and not words alone.

                            NAGORNO-KARABAKH

    The Committee directs that not less than $5,000,000 should 
be made available for humanitarian and relief assistance for 
Nagorno-Karabakh. The Committee strongly supports the provision 
of such assistance to meet basic human needs, including 
drinking water programs. The Committee expects USAID to consult 
with the Committee within 60 days after the enactment of this 
Act on plans for disbursement of these funds.

                       POLLUTION IN CENTRAL ASIA

    The Committee is concerned about the extensive 
environmental pollution in the Central Asia region, and its 
severe, adverse effects on public health, particularly on the 
health of children. Toxic chemical waste, power plant 
emissions, mining tailings, oil pollution, and other 
environmental hazards are pervasive threats. The Committee 
believes USAID should strongly support efforts, such as those 
of the Institute for Sustainable Communities, to mitigate the 
effects of environmental pollution on human health. These 
efforts should focus on strengthening the capacity of local 
government and civil society to address these problems by 
increasing knowledge, improving policies, building 
partnerships, and identifying specific environmental health 
improvements and developing strategies to implement and 
replicate them.

                               TRUST FUND

    The Committee supports, in principle, the concept of a 
trust fund to support democratic reforms in Russia under the 
leadership of the Eurasia Foundation. The Committee requests 
the State Department and USAID to consult with the Committee on 
the feasibility of establishing and financing such a fund, 
which would have a life span of up to 10 years. The Committee 
believes that such a trust fund should support aggressive, 
cutting edge programs and activities that promote democracy and 
civil society in Russia.

                          Independent Agencies


                       INTER-AMERICAN FOUNDATION

Appropriations, 2003....................................     $16,095,000
Budget estimate, 2004...................................      15,185,000
Committee recommendation................................      16,334,000

    The Committee provides $16,334,000 for the Inter-American 
Foundation [IAF]. The Committee again commends the progress the 
IAF has made in addressing past management deficiencies.

                     AFRICAN DEVELOPMENT FOUNDATION

Appropriations, 2003....................................     $18,568,000
Budget estimate, 2004...................................      17,689,000
Committee recommendation................................      18,689,000

    The Committee provides $18,689,000 for the African 
Development Foundation [ADF]. The Committee commends the work 
of the ADF, which provides critical, small-scale support for 
projects which benefit some of sub-Saharan Africa's most 
impoverished communities.

                              PEACE CORPS

Appropriations, 2003....................................    $295,069,000
Budget estimate, 2004...................................     359,000,000
Committee recommendation................................     310,000,000

    The Committee continues to support the important mission of 
the Peace Corps, and provides $310,000,000, which is 
$14,931,000 above the fiscal year 2003 enacted level. The 
Committee also provides authority to apportion $20,000,000 from 
the GAI account to the Peace Corps.
    The Committee supports efforts to increase the number of 
Peace Corps volunteers and expects assistance provided in this 
Act to provide for the continued expansion of existing programs 
and initiation of activities in new countries.
    The Committee commends the emphasis on safety and security 
for all Peace Corps volunteers, and recommends continued 
vigilance as the war on international terrorism continues.

                          Department of State


              INTERNATIONAL NARCOTICS AND LAW ENFORCEMENT

Appropriations, 2003....................................    $195,720,000
Emergency supplemental..................................      25,000,000
Budget estimate, 2004...................................     284,550,000
Committee recommendation................................     284,550,000

    The Committee provides $284,550,000 for International 
Narcotics and Law Enforcement [INL], which is equal to the 
budget request, and $88,830,000 above the fiscal year 2003 
enacted level.

                         TRAFFICKING IN PERSONS

    The Committee provides $20,000,000 in INL funds for 
programs and activities to counter trafficking in persons. The 
Committee remains strongly committed to assisting women and 
children who are the most innocent victims of this gross human 
rights violation, which also contributes to the spread of HIV/
AIDS. The Committee believes that these funds should be used to 
combat all three components of anti-trafficking: addressing the 
root causes of trafficking, protecting and providing services 
for victims, and prosecuting traffickers.

                INTERNATIONAL LAW ENFORCEMENT ACADEMIES

    The Committee recognizes and supports the important 
contributions of the International Law Enforcement Academy 
[ILEA] program to combat crime, corruption, and terrorism 
abroad. The Committee provides $7,105,000 for ILEA Roswell, New 
Mexico, which includes the fiscal year 2004 budget request of 
$5,000,000 and an additional $2,105,000 for construction of a 
new facility. The Committee expects to be consulted within 30 
days after enactment of this Act on the State Department's 
plans to provide such assistance to ILEA Roswell.

                     ANDEAN COUNTERDRUG INITIATIVE

Appropriations, 2003....................................    $695,450,000
Emergency supplemental..................................      34,000,000
Budget estimate, 2004...................................     731,000,000
Committee recommendation................................     660,000,000

    The Committee provides $660,000,000 for the Andean 
Counterdrug Initiative [ACI], and the authority for the 
transfer of up to an additional $37,000,000 from the 
International Narcotics Control and Law Enforcement account for 
the ACI. With this transfer authority, total funding for the 
ACI is $697,000,000, a slight increase over the fiscal year 
2003 enacted level. The Committee provides a total of 
$250,000,000 for alternative development/institution building 
programs under the ACI, which shall be apportioned directly to 
USAID.

                                COLOMBIA

    The Committee appreciates the commitment of Colombian 
President Uribe to tackle the threats of terrorism and 
narcotics in Colombia. The Committee recognizes the significant 
human and material resources devoted by the Colombian 
Government to the search for U.S. citizens taken hostage by 
Colombian guerillas.
    The Committee hopes that under President Uribe's 
leadership, Colombia can make significant progress against 
guerillas and paramilitaries that threaten to undermine 
democracy and the rule of law.
    The Committee continues to strongly support programs that 
bolster political and legal reforms in Colombia, and that 
provide alternative development opportunities in remote areas. 
The Committee includes $165,000,000 for alternative 
development/institution building activities for Colombia. Of 
this amount, not less than $25,000,000 is made available for 
judicial reform; not less than $2,500,000 for the protection of 
human rights defenders; not less than $2,500,000 for the U.N. 
Office of the High Commissioner for Human Rights in Colombia; 
not less than $10,000,000 for the Colombian Attorney General's 
Human Rights Unit; and not less than $2,500,000 for the human 
rights unit of the Colombian Procuraduria.
    The Committee continues certification requirements on 
aerial fumigation activities, and understands that the program 
is entering a new phase that may heighten security risks to 
spray pilots and accompanying support aircraft. The Committee 
understands that smaller plots of coca and poppy may be sprayed 
in the future, and that the guerillas may be more aggressive in 
protecting their illicit crops. The Committee recommends the 
State Department and contractors review security guidelines to 
ensure, to the maximum extent possible, the safety of personnel 
and equipment during spray missions. The Committee expresses 
its condolences to the families of those who have been killed 
during missions in Colombia. The Committee also continues the 
cap on United States personnel in Colombia, and the 
restrictions on United States military personnel and 
contractors from participating in combat.
    The Committee notes the significant progress made by the 
Colombian National Police [CNP] in reasserting its presence 
throughout the countryside. The Committee provides $17,000,000 
in the FMF account for three DC-3 aircraft to increase the 
CNP's mobility. The Committee strongly encourages the Colombian 
Government to consolidate its control in the countryside by 
providing social and economic services in areas secured by the 
police or military.
    The Committee remains concerned with the lack of reform of 
the Colombian Armed Forces, and hopes that the President and 
the Minister of Defense will swiftly complete their review of 
the military and initiate the process of reform. The Committee 
views the Colombian military as a particularly weak link in the 
fight against terrorism and narcotics, and continues 
restrictions on assistance to the military on progress in 
investigating and prosecuting human rights abuses and progress 
by the military in severing links with paramilitary groups.
    The Committee directs that not less than 90 days after 
enactment of this Act and 90 days thereafter, the Secretary of 
State shall submit a report to the Committee, including a 
classified annex if necessary, describing: (1) the budgetary 
impact for fiscal year 2004 and each fiscal year thereafter for 
the next 3 fiscal years of State Department and other relevant 
agency programs and activities funded pursuant to Plan Colombia 
and the Andean Counterdrug Initiative, including the projected 
cost per year of maintaining and operating equipment, including 
aircraft, that the United States has provided to Colombia; (2) 
progress, to date, that the United States has made in turning 
over management and implementation of Plan Colombia and Andean 
Counterdrug Initiative programs and activities from United 
States personnel or contractors to the Colombian Government; 
and (3) the exit strategy that would transfer such programs and 
activities to the Colombian Government.

                          NARCOTICS SPILLOVER

    The Committee remains concerned with the spillover effect 
of narcotics, guns and guerillas to countries bordering 
Colombia. Given Constitutional restrictions by some countries 
to conduct fumigation of illicit crops--and the absence of 
political will by others to address the narcotics problem head 
on--the Committee recommends the State Department prepare a 
contingency plan to address increases in coca or poppy growth 
in ACI countries. The Committee is concerned that absent such a 
plan, the spillover effect will quickly overwhelm the ability 
of countries bordering Colombia to maintain domestic security 
and stability.

                               VENEZUELA

    The Committee is alarmed by reports of cooperation and 
collusion between Venezuelan authorities and Colombian 
terrorists. The Committee includes a provision that restricts 
assistance to Venezuela, excluding democracy assistance, if the 
Secretary of State certifies that Venezuela is assisting, 
harboring, or providing sanctuary for Colombian terrorist 
organizations. The Committee provides not less than $5,000,000 
for democracy and rule of law assistance for Venezuela.

                                HOUSING

    The Committee is aware of the Ultimate Building Machine 
[UBM] system, which has a record of constructing housing in a 
number of regions around the world. The Committee notes that 
UBM system could be used for a range of purposes, including 
responding to humanitarian emergencies in the Andean region, 
and other nations where appropriate.

                    MIGRATION AND REFUGEE ASSISTANCE

Appropriations, 2003....................................    $781,885,000
Budget estimate, 2004...................................     760,197,000
Committee recommendation................................     760,197,000

    The Committee provides $760,197,000 for the Migration and 
Refugee Assistance account, which is equal to the budget 
request.

                         RESETTLEMENT IN ISRAEL

    The Committee provides not less than $50,000,000 for the 
resettlement of migrants from the former Soviet Union, Eastern 
Europe, and other areas to Israel. The Committee notes that 
while Israel has accepted more than 1 million refugees since 
1989, over the past year there has been a modest decline in the 
number of refugees from the former Soviet Union resettling in 
Israel. The Committee understands that a significant increase 
in the number of refugees arriving from Ethiopia is 
anticipated, and expects funding for these activities to be 
sustained in fiscal year 2005 to meet these needs.

                                CHECHNYA

    The Committee condemns and deplores the actions of the 
Russian Government to force and coerce the return of displaced 
Chechen civilians to conflict and combat areas. The Committee 
recommends the State Department to proactively and publicly 
engage the Russian Government to immediately terminate forced 
returns, provide additional assistance to those Chechens 
impacted by Russian efforts to force or coerce returns, and 
secure accountability for gross human rights violations--
including rape and torture--committed by Russian forces against 
Chechen civilians.

                            TIBETAN REFUGEES

    Like last year, the Committee supports continued funding to 
assist Tibetan refugees and recommends not less than $2,000,000 
for this purpose.
    The Committee notes with concern the situation of Tibetan 
refugees transiting through Nepal en route to resettlement in 
India. The Committee condemns the imprisonment of these 
refugees--including young children--and requests the relevant 
authorities in Nepal to provide safe passage to Tibetans 
fleeing repression in their homeland, and to continue to treat 
these refugees as ``persons of concern''.
    The Committee deplores the recent decision by the Nepalese 
Government to forcibly repatriate Tibetan refugees to China, 
where they face harsh prison sentences or worse. The Committee 
has included a provision that limits assistance to the central 
Government of Nepal until the Secretary of State certifies that 
Nepalese authorities are cooperating with the U.N. High 
Commissioner for Refugees and other international organizations 
on issues concerning the protecting of refugees from Tibet.

          REFUGEES AND INTERNALLY DISPLACED PERSONS IN AFRICA

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

            EMERGENCY REFUGEE AND MIGRATION ASSISTANCE FUND

Appropriations, 2003....................................     $25,831,000
Emergency supplemental..................................      80,000,000
Budget estimate, 2004...................................      40,000,000
Committee recommendation................................      40,000,000

    The Committee provides $40,000,000 for the Emergency 
Refugee and Migration Assistance fund. The Committee notes that 
an additional $40,000,000 was provided for this account in the 
emergency supplemental to meet unforeseen emergency needs.

    NONPROLIFERATION, ANTI-TERRORISM, DEMINING, AND RELATED PROGRAMS

Appropriations, 2003....................................    $304,408,000
Emergency supplemental..................................      28,000,000
Budget estimate, 2004...................................     385,200,000
Committee recommendation................................     385,200,000

    The Committee provides $385,200,000 for the 
Nonproliferation, Anti-terrorism, Demining, and Related 
Programs [NADR] account, and an additional $15,000,000 by 
transfer from the Foreign Military Financing account. The 
Committee continues its strong support for these programs which 
are critical to efforts by the United States to combat the 
proliferation of weapons of mass destruction, prevent and 
respond to international terrorism, and help improve border 
security. The Committee provides the following funding levels 
to the NADR accounts listed below:

------------------------------------------------------------------------

------------------------------------------------------------------------
Nonproliferation and Disarmament Fund...................     $45,000,000
Export Control/Related Border Security..................      40,000,000
Science Centers/Bio-Redirection.........................      59,000,000
IAEA Voluntary Contribution.............................      53,000,000
International Monitoring System (CTBT)..................      19,300,000
Anti-Terrorism Assistance...............................     106,400,000
Terrorist Interdiction Program..........................      11,000,000
CT Engagement...........................................       2,500,000
Humanitarian Demining Program...........................      50,000,000
International Trust Fund................................      10,000,000
Small Arms/Light Weapons Destruction....................       4,000,000
------------------------------------------------------------------------

                       ANTI-TERRORISM ASSISTANCE

    The Committee directs the State Department to utilize to 
the fullest extent practicable the facilities of the U.S. 
Army's Aberdeen Proving Grounds, the New Mexico Institute of 
Mining and Technology in Socorro, New Mexico, Louisiana State 
University and the Louisiana State Police facilities in Baton 
Rouge, Louisiana, in carrying out the ATA program.

                      SMALL ARMS AND LIGHT WEAPONS

    The Committee supports the administration's efforts to 
destroy stockpiles of small arms and light weapons [SA/LW] that 
would otherwise threaten United States forces and undermine 
development efforts around the world. As large caches of 
weapons have been discovered in Iraq, and the SA/LW program is 
expanding its efforts to target man-portable air defense 
systems, the Committee provides $4,000,000 for this program.

                     TERRORIST INTERDICTION PROGRAM

    The Committee supports the Terrorist Interdiction Program, 
but is concerned with the management structure of the program. 
The Committee directs the State Department to submit a report 
not later than 60 days after enactment of this Act describing 
in detail the management structure of the program, including 
the role of contractors and the level of active participation 
by the Office of the Coordinator for Counterterrorism. The 
report may be submitted in classified form, if necessary. The 
Committee expects the State Department to consult on the form 
that this report will take.

            COMPREHENSIVE NUCLEAR TEST BAN TREATY COMMISSION

    The Committee supports the fiscal year 2004 request for a 
United States contribution to the Comprehensive Nuclear Test 
Ban Treaty Preparatory Commission [CTBT], and includes a 
provision that requires that any funding, which is made 
available for the CTBT but not used for that purpose, to be 
transferred to the International Atomic Energy Agency.

                   INTERNATIONAL ATOMIC ENERGY AGENCY

    The Committee supports the work of the International Atomic 
Energy Agency [IAEA] to promote nuclear safety, protect the 
environment, and curb the proliferation of nuclear weapons 
technology. The Committee supports the administration's efforts 
to increase funding for IAEA's Safeguards System, but 
recognizes that negotiations on this issue could take time. In 
the interim, the Committee believes it is critical, especially 
in light of recent developments in Iran, that the IAEA receive 
adequate funding from the United States and other donors. The 
Committee, therefore, provides $53,000,000 for a voluntary 
contribution to the IAEA, which is $3,000,000 above the budget 
request.

                             NUCLEAR SAFETY

    The Committee recommends the State Department consider 
providing up to $5,000,000 for the Idaho National Engineering 
and Environmental Laboratory to support the efforts of the 
Republic of Poland to mitigate chemical contamination, improve 
safeguards for storage of nuclear materials and enhance 
radiological detection capabilities.

                         HUMANITARIAN DEMINING

    The Committee supports the State Department's Humanitarian 
Demining Program to clear landmines and other unexploded 
ordnance that continue to endanger people in over 60 countries. 
The Committee provides $60,000,000 for these activities. Of 
this amount, funds may be made available for the International 
Trust Fund, on a dollar-for-dollar matching basis.
    The Committee notes that the State Department has developed 
public-private partnerships with nongovernmental organizations, 
foundations, and private companies, in support of mine action 
activities. To enhance the effectiveness of these public-
private partnerships, the Committee provides the State 
Department with authority to enter into grants and cooperative 
agreements. To the maximum extent feasible, grants and 
cooperative agreements should be used to support mine action 
activities of nongovernmental organizations. The State 
Department is to implement this authority in compliance with 
all statutory and regulatory guidelines governing grants and 
cooperative agreements.
    The Committee notes that several country recipients of 
demining funds from the NADR account also receive large amounts 
of assistance from the ESF, SEED, or FSU accounts. The 
Committee is concerned about pressures on the NADR budget which 
contains a limited amount of humanitarian demining funds, and 
believes that demining programs in these countries should be 
funded jointly from both NADR and these other accounts.

                       Department of the Treasury


                INTERNATIONAL AFFAIRS TECHNICAL TRAINING

Appropriations, 2003....................................     $10,730,000
Budget estimate, 2004...................................      14,000,000
Committee recommendation................................      12,000,000

    The Committee supports the Department of the Treasury's 
International Affairs Technical Assistance program and provides 
$12,000,000 for fiscal year 2004.

                           DEBT RESTRUCTURING

Appropriations, 2003....................................................
Budget estimate, 2004...................................    $395,000,000
Committee recommendation................................     195,000,000

    The Committee provides a total of $195,000,000 for debt 
restructuring, of which $75,000,000 is for the Heavily Indebted 
Poor Countries [HIPC] Trust Fund, $100,000,000 is to fund 
bilateral debt reduction for the Democratic Republic of Congo 
[DROC] under the HIPC initiative, and $20,000,000 is for the 
Treasury Debt Restructuring account for debt reduction under 
the Tropic Forest Conservation Act.
    The Committee notes the progress toward the formation of a 
new government in the DROC, and recognizes that significant 
challenges remain in efforts to improve the lives of the 
Congolese people. The Committee supports debt relief to the 
DROC, but has adopted a measured approach. While $100,000,000 
is provided for this purpose, the balance of funds in the 
budget request is distributed to a number of accounts 
(including Child Survival and Health Programs Fund and 
Development Assistance) that will more immediately address 
pressing needs in Africa. The Committee supports additional 
debt relief for the DROC in future Foreign Operations 
Appropriations acts.

                               TITLE III

                    MILLENNIUM CHALLENGE ASSISTANCE

                  Funds Appropriated to the President

                    MILLENNIUM CHALLENGE ASSISTANCE

Appropriations, 2003....................................................
Budget estimate, 2004...................................  $1,300,000,000
Committee recommendation................................   1,000,000,000

    The Committee provides $1,000,000,000 for Millennium 
Challenge Assistance, which is $300,000,000 below the fiscal 
year 2004 request.
    The Committee fully supports the concept and intentions of 
this new initiative, and has included language in the Act that 
broadly authorizes the establishment of the program. However, 
the Committee expects authorizing language for this program to 
be considered and acted upon by Congress prior to enactment of 
this Act.

                                TITLE IV

                          MILITARY ASSISTANCE

                  Funds Appropriated to the President

             INTERNATIONAL MILITARY EDUCATION AND TRAINING

Appropriations, 2003....................................     $79,480,000
Budget estimate, 2004...................................      91,700,000
Committee recommendation................................      91,700,000

    The Committee continues its strong support for the 
International Military Education and Training [IMET] program 
and provides $91,700,000 for this account. This is $12,220,000 
above the fiscal year 2003 allocation.
    The Committee notes that Public Law 108-7 includes a 
provision that requires the administration to submit a report 
to Congress on progress toward improving the performance 
evaluation procedures for the IMET program and implementing 
section 548 of the Foreign Assistance Act. The Committee 
commends the State Department's Bureau of Political Military 
Affairs and the Defense Security and Cooperation Agency for 
consulting on the scope and content of the report. While the 
Committee believes that the number of people trained under IMET 
is one important element in measuring the success of the 
program, other factors--such as the effect that sustained IMET 
assistance is having on professionalizing a foreign military, 
ensuring respect for civilian authority and the rule of law, 
and improving interoperability with United States forces--
should also be considered.
    The Committee commends the administration for issuing new 
guidance for the implementation of the Informational Program 
[IP], and believes that, while this is a good first step, more 
needs to be done to ensure that the IP is implemented in a 
manner the maximizes the goals of the IMET program. The 
Committee requests the Secretary of State to submit a report 
not later than 120 days after enactment of this Act on the 
status of the IP guidance and the impact this has had on making 
the IP program more consistent with the goals of the IMET 
program.

                       FOREIGN MILITARY FINANCING

                          GRANT PROGRAM LEVEL

Appropriations, 2003....................................  $4,045,532,000
Emergency supplemental..................................   2,059,100,000
Budget estimate, 2004...................................   4,414,000,000
Committee recommendation................................   4,384,000,000

    The Committee provides $4,384,000,000 in Foreign Military 
Financing grant programs for fiscal year 2004, which is 
$338,468,000 above the fiscal year 2003 enacted level.

              LIMITATION ON ASSISTANCE TO SECURITY FORCES

    The Committee commends the State Department, particularly 
the Bureaus of Political-Military Affairs and Democracy, Human 
Rights, and Labor, for issuing a new cable on implementation of 
the ``Leahy Amendments'' (section 553 of Public Law 108-7 and 
section 8080 of Public Law 107-248). The Committee notes that 
this cable requires personnel posted at U.S. embassies to be 
more proactive in investigating and reporting on allegations of 
human rights violations by foreign security forces. This is 
consistent with what the Committee has urged in the past. The 
Committee requests the State Department to inform Congress if 
additional resources are needed to effectively implement this 
and other directives in the cable.

                         MIDDLE EAST COUNTRIES

    The Committee provides the administration's request of 
$2,160,000,000, for Israel $1,300,000,000 for Egypt, and 
$206,000,000 for Jordan.

                        OPERATION IRAQI FREEDOM

    The Committee notes with the appreciation the support of 
numerous nations in the liberation of Iraq, including Albania, 
El Salvador, Macedonia, Mongolia, the Democratic Republic of 
Timor-Leste, and Uganda. The Committee recommends increased FMF 
support for these countries, specifically not less than 
$6,500,000 for Albania and $12,000,000 for Macedonia.

                            THE PHILIPPINES

    The Committee notes with appreciation the cooperation 
between the United States and the Philippines to counter 
terrorism, and recommends $20,000,000 in FMF for the 
Philippines, which reflects a modest increase above the budget 
request. The Committee also supports full funding of the budget 
request for IMET assistance for the Philippines.
    The Committee urges the administration to support a 
Comprehensive Security Review of the Philippine military, which 
will assist in determining how the United States can best 
support modernization and reform. The Committee also supports 
increasing the mobility of the Philippine military.

                                ROMANIA

    The Committee appreciates the steps Romania has taken to 
support common security interests, including in Iraq. As 
Romania prepares to join NATO, the Committee encourages the 
administration to provide additional assistance in order to 
strengthen military, economic, and political ties to that 
country.

                                TUNISIA

    The Committee supports the administration's request of 
$10,000,000 in FMF and $1,750,000 in IMET assistance for 
Tunisia.

                           ORDNANCE DISPOSAL

    The Committee is concerned that FMF funds were used to pay 
costs related to the training of Panamanian personnel to disarm 
and dispose of World War II munitions at a former United States 
military testing facility on San Jose Island, Panama. The 
Committee does not believe that FMF funds should be used for 
the clearance of unexploded ordnance at such facilities, and 
has included a provision to this effect.

                        PEACEKEEPING OPERATIONS

Appropriations, 2003....................................    $114,252,000
Emergency supplemental..................................     100,000,000
Budget estimate, 2004...................................      94,900,000
Committee recommendation................................      84,900,000

    The Committee provides $84,900,000 for Peacekeeping 
Operations, which is $10,000,000 below the budget request. The 
Committee is concerned about maintaining adequate funding for 
peacekeeping operations in Africa, and recommends full funding 
of the budget request for these programs.

                                TITLE V

                    MULTILATERAL ECONOMIC ASSISTANCE

              International Financial Institutions Summary

Appropriations, 2003....................................  $1,295,781,000
Budget estimate, 2004...................................   1,554,878,000
Committee recommendation................................   1,499,000,000

    The Committee recommends the total amount of paid-in 
capital funding shown above to provide for contributions to the 
International Development Association, Multilateral Investment 
Guarantee Agency, the Global Environment Facility [GEF], the 
Inter-American Development Bank's Inter-American Investment 
Corporation and Multilateral Investment Fund, the Asian 
Development Fund, the African Development Bank and Fund, the 
European Bank for Reconstruction and Development, and the 
International Fund for Agriculture Development.
    Oversight.--The Committee is concerned with reports of the 
misuse of funds and insufficient oversight at the multilateral 
development banks, and has therefore included a provision which 
requires the Secretary of the Treasury to ensure that these 
institutions are implementing regular, independent, external 
audits of their internal management controls and procedures for 
meeting operational objectives, complying with Bank policies, 
and preventing fraud, and making reports describing the scope 
and findings of such audits available to the public on at least 
an annual basis. In addition, to ensure transparency and 
accountability, the Secretary is to ensure that, at least 45 
days prior to consideration by the board of directors of the 
institution, proposed loans, credits, or grant agreements have 
been published and include the resources and conditionality 
necessary to ensure that the borrower complies with applicable 
laws. Finally, due to concerns about the treatment of and 
retaliation against whistle blowers, the Secretary is to ensure 
that these institutions are implementing effective procedures, 
consistent with those in United States and international law, 
for the receipt, retention, and treatment of complaints 
regarding fraud, accounting, mismanagement, internal accounting 
controls, or auditing matters and of the confidential, 
anonymous submission by employees of concerns regarding fraud, 
accounting, mismanagement, internal accounting controls, or 
auditing matters.
    World Bank.--While the Committee appreciates the myriad 
programs administered by the World Bank, it notes that absent 
the political will to hold foreign governments accountable for 
their actions, investments in development and monitoring 
activities are directly undermined. The Committee regrets the 
failure of the World Bank to adequately support forestry 
monitor Global Witness prior to its termination by the 
Government of Cambodia.
    The Committee reiterates its concerns with the World Bank's 
efforts to reform internal grievance procedures, and will 
continue to closely follow this matter.

         International Bank for Reconstruction and Development


                      GLOBAL ENVIRONMENT FACILITY

Appropriations, 2003....................................    $146,852,000
Budget estimate, 2004...................................     184,997,000
Committee recommendation................................     170,997,000

                 INTERNATIONAL DEVELOPMENT ASSOCIATION

Appropriations, 2003....................................    $844,475,000
Budget estimate, 2004...................................     976,825,000
Committee recommendation................................     976,825,000

                Multilateral Investment Guarantee Agency

Appropriations, 2003....................................      $1,620,000
Budget estimate, 2004...................................       4,002,000
Committee recommendation................................       1,124,000

                    Inter-American Development Bank


                 INTER-AMERICAN INVESTMENT CORPORATION

Appropriations, 2003....................................     $18,233,000
Budget estimate, 2004...................................      30,898,000
Committee recommendation................................       8,898,000

                      MULTILATERAL INVESTMENT FUND

Appropriations, 2003....................................     $24,431,000
Budget estimate, 2004...................................      32,614,000
Committee recommendation................................      30,614,000

                         Asian Development Bank


                         ASIAN DEVELOPMENT FUND

Appropriations, 2003....................................     $97,250,000
Budget estimate, 2004...................................     151,921,000
Committee recommendation................................     136,921,000

                        African Development Bank

Appropriations, 2003....................................      $5,071,000
Budget estimate, 2004...................................       5,105,000
Committee recommendation................................       5,105,000

                        AFRICAN DEVELOPMENT FUND

Appropriations, 2003....................................    $107,371,000
Budget estimate, 2004...................................     118,081,000
Committee recommendation................................     118,081,000

            European Bank for Reconstruction and Development

Appropriations, 2003....................................     $35,572,000
Budget estimate, 2004...................................      35,431,000
Committee recommendation................................      35,431,000

            INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT

Appropriations, 2003....................................     $14,906,000
Budget estimate, 2004...................................      15,004,000
Committee recommendation................................      15,004,000

                INTERNATIONAL ORGANIZATIONS AND PROGRAMS

Appropriations, 2003....................................    $193,882,000
Budget estimate, 2004...................................     314,550,000
Committee recommendation................................     314,550,000

    The Committee provides $314,550,000 for the ``International 
Organizations and Programs'' account. This amount is 
$120,668,000 above the fiscal year 2003 level.

                           WORLD FOOD PROGRAM

    Like last year, the Committee provides $6,000,000 for the 
World Food Program [WFP] from International Disaster Assistance 
funds managed by USAID's Bureau for Democracy, Conflict, and 
Humanitarian Assistance under section 634 of this Act.
    The Committee commends the WFP's work to combat global 
hunger. The Committee continues to be alarmed with famine in 
sub-Saharan Africa, where a number of factors (including 
drought, HIV/AIDS, conflict and failed government policies) 
have placed more than 40,000,000 people at risk of starvation. 
An additional 100,000,000 people are malnourished. While 
additional emergency food aid is needed, the Committee believes 
it must be complemented with strategies to address long-term 
development needs in the region, such as health care, water, 
education, and agricultural production.

                     UNITED NATIONS CHILDREN'S FUND

    The Committee supports efforts to reach the child survival 
goals set by the World Summit for Children, the Millennium 
Development Goals, and the 2002 U.N. Special Session on 
Children. The United Nations Children's Fund [UNICEF] is an 
essential partner of the United States in achieving these 
goals. The Committee endorses the budget request of 
$120,000,000 for UNICEF from this account, but notes that this 
should not preclude USAID from providing additional funding for 
specific UNICEF projects as may be appropriate.

                               UN-HABITAT

    The Committee supports the efforts of the U.N. Center for 
Human Settlements [UN-HABITAT] to improve the lives of slum 
dwellers and ameliorate urban problems around the world, and 
provides $1,000,000 for a contribution to UN-HABITAT.

                                TITLE VI

                           GENERAL PROVISIONS

    Sec. 601. Obligations During Last Month of Availability.
    Sec. 602. Private and Voluntary Organizations.
    Sec. 603. Limitation on Residence Expenses.
    Sec. 604. Limitation on Expenses.
    Sec. 605. Limitation on Representational Allowances.
    Sec. 606. Prohibition on Financing Nuclear Goods.
    Sec. 607. Prohibition Against Direct Funding for Certain 
Countries.
    Sec. 608. Military Coups.
    Sec. 609. Transfers.
    Sec. 610. Deobligation/Reobligation Authority.
    Sec. 611. Availability of Funds.
    Sec. 612. Limitation on Assistance to Countries in Default.
    Sec. 613. Commerce and Trade.
    Sec. 614. Surplus Commodities.
    Sec. 615. Notification Requirements.
    Sec. 616. Limitation on Availability of Funds for 
International Organizations and Programs.
    Sec. 617. Independent States of the Former Soviet Union.
    Sec. 618. Prohibition on Funding for Abortions and 
Involuntary Sterilization.
    Sec. 619. Export Financing Transfer Authorities.
    Sec. 620. Special Notification Requirements.
    Sec. 621. Definition of Program, Project, and Activity.
    Sec. 622. Child Survival and Health Activities.
    Sec. 623. Afghanistan.
    Sec. 624. Notification on Excess Defense Equipment.
    Sec. 625. Authorization Requirement.
    Sec. 626. Democracy Programs.
    Sec. 627. Prohibition on Bilateral Assistance to Terrorist 
Countries.
    Sec. 628. Debt-For-Development.
    Sec. 629. Separate Accounts.
    Sec. 630. Compensation for United States Executive 
Directors to International Financial Institutions.
    Sec. 631. Discrimination Against Minority Religious Faiths 
in the Russian Federation.
    Sec. 632. Authorities for the Peace Corps, Inter-American 
Foundation and African Development Foundation.
    Sec. 633. Impact on Jobs in the United States.
    Sec. 634. Special Authorities.
    Sec. 635. Arab League Boycott of Israel.
    Sec. 636. Administration of Justice Activities.
    Sec. 637. Eligibility for Assistance.
    Sec. 638. Earmarks.
    Sec. 639. Ceilings and Earmarks.
    Sec. 640. Prohibition on Publicity or Propaganda.
    Sec. 641. Prohibition of Payments to United Nations 
Members.
    Sec. 642. Nongovernmental Organizations--Documentation.
    Sec. 643. Prohibition on Assistance to Foreign Governments 
that Export Lethal Military Equipment to Countries Supporting 
International Terrorism.
    Sec. 644. Withholdings of Assistance for Parking Fines Owed 
by Foreign Countries.
    Sec. 645. Limitation on Assistance for the PLO for the West 
Bank and Gaza.
    Sec. 646. War Crimes Tribunal Drawdown.
    Sec. 647. Landmines.
    Sec. 648. Restrictions Concerning the Palestinian 
Authority.
    Sec. 649. Prohibition of Payment of Certain Expenses.
    Sec. 650. Tibet.
    Sec. 651. Haiti.
    Sec. 652. Limitation on Assistance to the Palestinian 
Authority.
    Sec. 653. Limitation on Assistance to Security Forces.
    Sec. 654. Environment Programs.
    Sec. 655. Regional Programs for East Asia and the Pacific.
    Sec. 656. Zimbabwe.
    Sec. 657. Nigeria.
    Sec. 658. Burma.
    Sec. 659. Enterprise Fund Restrictions.
    Sec. 660. Cambodia.
    Sec. 661. Foreign Military Training Report.
    Sec. 662. Enterprise Fund in the Middle East Region.
    Sec. 663. Palestinian Statehood.
    Sec. 664. Colombia.
    Sec. 665. Illegal Armed Groups.
    Sec. 666. Prohibition on Assistance to the Palestinian 
Broadcasting Corporation.
    Sec. 667. Iraq.
    Sec. 668. West Bank and Gaza Program.
    Sec. 669. Indonesia.
    Sec. 670. Restrictions on Assistance to Governments 
Destabilizing West Africa.
    Sec. 671. Special Debt Relief for the Poorest.
    Sec. 672. Authority to Engage in Debt Buybacks or Sales.
    Sec. 673. Contributions to United Nations Population Fund.
    Sec. 674. Central Asia.
    Sec. 675. Commercial Leasing of Defense Articles.
    Sec. 676. War Criminals.
    Sec. 677. User Fees.
    Sec. 678. Funding for Serbia.
    Sec. 679. Multilateral Development Bank Accountability.
    Sec. 680. Cooperation with Cuba on Counter-Narcotics 
Matters.
    Sec. 681. Community-Based Police Assistance.
    Sec. 682. Overseas Private Investment Corporation and 
Export-Import Bank Restrictions.
    Sec. 683. American Churchwomen and Other Citizens in El 
Salvador and Guatemala.
    Sec. 684. Conflict Resolution.
    Sec. 685. Nicaragua.
    Sec. 686. Report on International Coffee Crisis.
    Sec. 687. Venezuela.
    Sec. 688. Disability Access.
    Sec. 689. Thailand.
    Sec. 690. Modification on Reporting Requirements.
    Sec. 691. Assistance for Foreign Nongovernmental 
Organizations. 

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

    Rule XVI, paragraph 7 requires that every report on a 
general appropriation bill filed by the Committee must identify 
each recommended amendment, with particularity, which proposes 
an item of appropriation which is not made to carry out the 
provisions of an existing law, a treaty stipulation, or an act 
or resolution previously passed by the Senate during that 
session.
    Items providing funding for fiscal year 2004 which lack 
authorization are as follows:

------------------------------------------------------------------------
                                                             Amount
------------------------------------------------------------------------
Child Survival and Health Programs Fund...............    $1,435,500,000
Development Assistance................................     1,423,000,000
International Disaster Assistance.....................       235,500,000
Famine Fund...........................................       100,000,000
Transition Initiatives................................        55,000,000
Development Credit Authority..........................         8,000,000
USAID Operating Expenses..............................       604,100,000
USAID Operating Expenses, Office of Inspector General.        35,000,000
USAID Capital Investment Fund.........................       100,000,000
Economic Support Fund.................................     2,415,000,000
Global AIDS Initiative................................       700,000,000
Assistance for Eastern Europe and the Baltics.........       445,000,000
Assistance for the Independent States of the Former          596,000,000
 Soviet Union.........................................
Inter-American Foundation.............................        16,334,000
African Development Foundation........................        18,689,000
Peace Corps...........................................       310,000,000
International Narcotics Control and Law Enforcement...       284,500,000
Migration and Refugee Assistance......................       760,197,000
Emergency Migration and Refugee Assistance............        40,000,000
Nonproliferation, Anti-Terrorism, Demining and Related       385,200,000
 Assistance...........................................
Treasury Technical Assistance.........................        12,000,000
Debt Restructuring....................................       195,000,000
Millennium Challenge..................................     1,000,000,000
International Military Education and Training.........        91,700,000
Foreign Military Financing Program....................     4,384,000,000
Peacekeeping Operations...............................        84,900,000
International Organizations and Programs..............       314,550,000
International Development Association.................       976,825,000
Asian Development Fund................................       136,921,000
African Development Fund..............................       118,081,000
------------------------------------------------------------------------

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

    Pursuant to paragraph 7(c) of rule XXVI, on July 17, 2003, 
the Committee ordered reported en bloc: S. 1427, an original 
bill making appropriations for Agriculture, Rural Development, 
Food and Drug Administration, and Related Agencies programs for 
the fiscal year ending September 30, 2004; S. 1424, an original 
bill making appropriations for Energy and Water Development for 
the fiscal year ending September 30, 2004; and S. 1426, an 
original bill making appropriations for Foreign Operations, 
Export Financing, and related programs for the fiscal year 
ending September 30, 2004; each subject to amendment and each 
subject to the budget allocations, by a recorded vote of 29-0, 
a quorum being present. The vote was as follows:
        Yeas                          Nays
Chairman Stevens
Mr. Cochran
Mr. Specter
Mr. Domenici
Mr. Bond
Mr. McConnell
Mr. Burns
Mr. Shelby
Mr. Gregg
Mr. Bennett
Mr. Campbell
Mr. Craig
Mrs. Hutchison
Mr. DeWine
Mr. Brownback
Mr. Byrd
Mr. Inouye
Mr. Hollings
Mr. Leahy
Mr. Harkin
Ms. Mikulski
Mr. Reid
Mr. Kohl
Mrs. Murray
Mr. Dorgan
Mrs. Feinstein
Mr. Durbin
Mr. Johnson
Ms. Landrieu

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

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

                                            BUDGETARY IMPACT OF BILL
  PREPARED IN CONSULTATION WITH THE CONGRESSIONAL BUDGET OFFICE PURSUANT TO SEC. 308(a), PUBLIC LAW 93-344, AS
                                                     AMENDED
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                              Budget authority                 Outlays
                                                       ---------------------------------------------------------
                                                           Committee     Amount  of     Committee     Amount  of
                                                        allocation \1\      bill     allocation \1\      bill
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee
 allocations to its subcommittees of amounts in the
 Budget Resolution for 2004: Subcommittee on Foreign
 Operations:
    Discretionary.....................................         18,093        18,093         20,303    \1\ 20,294
    Mandatory.........................................             44            44             44        \1\ 44
Projection of outlays associated with the
 recommendation:
    2004..............................................  ..............  ...........  ..............    \2\ 6,534
    2005..............................................  ..............  ...........  ..............        6,311
    2006..............................................  ..............  ...........  ..............        2,553
    2007..............................................  ..............  ...........  ..............        1,411
    2008 and future years.............................  ..............  ...........  ..............        1,148
Financial assistance to State and local governments                NA   ...........             NA   ...........
 for  2004............................................
----------------------------------------------------------------------------------------------------------------
\1\ Includes outlays from prior-year budget authority.
\2\ Excludes outlays from prior-year budget authority.

NA: Not applicable.


  COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2003 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR FISCAL
                                                                        YEAR 2004
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                        Senate Committee recommendation
                                                                                                                            compared with (+ or -)
                             Item                                     2003         Budget estimate      Committee    -----------------------------------
                                                                  appropriation                      recommendation         2003
                                                                                                                        appropriation    Budget estimate
--------------------------------------------------------------------------------------------------------------------------------------------------------

           TITLE I--EXPORT AND INVESTMENT ASSISTANCE

            EXPORT-IMPORT BANK OF THE UNITED STATES

Subsidy appropriation.........................................          509,566   ................  ................         -509,566   ................
Administrative expenses.......................................           67,856            75,395            74,395            +6,539            -1,000
Inspector General.............................................  ................            1,200             1,000            +1,000              -200
Negative subsidy..............................................          -13,000           -34,000           -34,000           -21,000   ................
                                                               -----------------------------------------------------------------------------------------
      Total, Export-Import Bank of the United States..........          564,422            42,595            41,395          -523,027            -1,200

            OVERSEAS PRIVATE INVESTMENT CORPORATION

Noncredit account:
    Administrative expenses...................................           39,626            42,385            41,385            +1,759            -1,000
    Insurance fees and other offsetting collections...........         -306,000          -272,000          -272,000           +34,000   ................
Subsidy appropriation.........................................           23,844            24,000            24,000              +156   ................
                                                               -----------------------------------------------------------------------------------------
      Total, Overseas Private Investment Corporation..........         -242,530          -205,615          -206,615           +35,915            -1,000

              FUNDS APPROPRIATED TO THE PRESIDENT

Trade and development agency..................................           46,706            60,000            50,000            +3,294           -10,000
                                                               =========================================================================================
      Total, title I, Export and investment assistance........          368,598          -103,020          -115,220          -483,818           -12,200
                                                               =========================================================================================
            TITLE II--BILATERAL ECONOMIC ASSISTANCE

              FUNDS APPROPRIATED TO THE PRESIDENT

      United States Agency for International Development

Child survival and health programs fund.......................        1,824,563         1,495,000         1,435,500          -389,063           -59,500
    UNICEF....................................................         (120,000)  ................  ................        (-120,000)  ................
    (Transfer out)............................................          (-5,961)  ................          (-6,000)             (-39)          (-6,000)
    Emergency supplemental (Public Law 108-11)................           90,000   ................  ................          -90,000   ................
Global AIDS initiative........................................  ................          450,000           700,000          +700,000          +250,000
    (Transfer out)............................................  ................  ................         (-20,000)         (-20,000)         (-20,000)
Development assistance........................................        1,379,972         1,345,000         1,423,000           +43,028           +78,000
    (Transfer out)............................................  ................         (-21,000)         (-21,000)         (-21,000)  ................
International disaster assistance.............................          288,115           235,500           235,500           -52,615   ................
    Emergency supplemental (Public Law 108-11)................          143,800   ................  ................         -143,800   ................
Famine fund...................................................  ................          200,000           100,000          +100,000          -100,000
Transition Initiatives........................................           49,675            55,000            55,000            +5,325   ................
Development Credit Program:
    (By transfer).............................................  ................          (21,000)          (21,000)         (+21,000)  ................
    Administrative expenses...................................            7,542             8,000             8,000              +458   ................
                                                               -----------------------------------------------------------------------------------------
      Subtotal, development assistance........................        3,783,667         3,788,500         3,957,000          +173,333          +168,500

Payment to the Foreign Service Retirement and Disability Fund.           45,200            43,859            43,859            -1,341   ................
Operating expenses of the U.S. Agency for International                 568,282           604,100           604,100           +35,818   ................
 Development..................................................
    Emergency supplemental (Public Law 108-11)................           24,500   ................  ................          -24,500   ................
    (By transfer).............................................           (5,961)  ................           (6,000)             (+39)          (+6,000)
    Emergency supplemental (Public Law 108-11) (Transfer to             (-3,500)  ................  ................          (+3,500)  ................
     U.S. AID Office of Inspector General)....................
Capital Investment Fund.......................................           42,721           146,300           100,000           +57,279           -46,300
Operating expenses of the U.S. Agency for International                  33,084            35,000            35,000            +1,916   ................
 Development Office of Inspector General......................
    Emergency supplemental (Public Law 108-11) (By transfer)..           (3,500)  ................  ................          (-3,500)  ................
                                                               -----------------------------------------------------------------------------------------
      Total, U.S. Agency for International Development........        4,497,454         4,617,759         4,739,959          +242,505          +122,200

              Other Bilateral Economic Assistance

Economic support fund:
    Camp David countries......................................        1,207,102         1,055,000         1,055,000          -152,102   ................
    Other.....................................................        1,048,142         1,480,000         1,360,000          +311,858          -120,000
    Economic support fund (Public Law 108-11).................        2,422,000   ................  ................       -2,422,000   ................
    Pakistan debt relief......................................  ................  ................  ................  ................  ................
    Loan guarantees to Egypt: (Limitation on guaranteed loans)       (2,000,000)  ................  ................      (-2,000,000)  ................
     (Public Law 108-11)......................................
    Loan guarantees to Turkey: (Limitation on guaranteed             (8,500,000)  ................  ................      (-8,500,000)  ................
     loans) (Public Law 108-11)...............................
                                                               -----------------------------------------------------------------------------------------
          Subtotal, Economic support fund.....................        4,677,244         2,535,000         2,415,000        -2,262,244          -120,000

International Fund for Ireland................................           24,837   ................  ................          -24,837   ................
Assistance for Eastern Europe and the Baltic States...........          521,587           435,000           445,000           -76,587           +10,000
Assistance for the Independent States of the former Soviet              755,060           576,000           596,000          -159,060           +20,000
 Union........................................................
U.S. emergency fund for complex international crises..........  ................          100,000   ................  ................         -100,000
Iraq relief and reconstruction fund (Public Law 108-11).......        2,475,000   ................  ................       -2,475,000   ................
    (Transfer authority) (Public Law 108-11)..................         (200,000)  ................  ................        (-200,000)  ................
Loan guarantees to Israel: (Limitation on guaranteed loans)          (9,000,000)  ................  ................      (-9,000,000)  ................
 (Public Law 108-11)..........................................
                                                               -----------------------------------------------------------------------------------------
      Total, Other Bilateral Economic Assistance..............        8,453,728         3,646,000         3,456,000        -4,997,728          -190,000

                     INDEPENDENT AGENCIES

                   Inter-American Foundation

Appropriation.................................................           16,095            15,185            16,334              +239            +1,149

                African Development Foundation

Appropriation.................................................           18,568            17,689            18,689              +121            +1,000

                          Peace Corps

Appropriation.................................................          295,069           359,000           310,000           +14,931           -49,000
    (By transfer).............................................  ................  ................          (20,000)         (+20,000)         (+20,000)

                Millenium Challenge Corporation

Appropriation.................................................  ................        1,300,000         1,000,000        +1,000,000          -300,000

                      Department of State

International narcotics control and law enforcement...........          195,720           284,550           284,550           +88,830   ................
    (Transfer out)............................................  ................  ................         (-37,000)         (-37,000)         (-37,000)
    Emergency supplemental (Public Law 108-11)................           25,000   ................  ................          -25,000   ................
Andean Counterdrug Initiative.................................          695,450           731,000           660,000           -35,450           -71,000
    Emergency supplemental (Public Law 108-11)................           34,000   ................  ................          -34,000   ................
    (By transfer).............................................          (92,396)  ................          (54,000)         (-38,396)         (+54,000)
    Emergency supplemental (Public Law 108-11) (By transfer)..          (20,000)  ................  ................         (-20,000)  ................
Migration and refugee assistance..............................          781,885           760,197           760,197           -21,688   ................
United States Emergency Refugee and Migration Assistance Fund.           25,831            40,000            40,000           +14,169   ................
    Emergency supplemental (Public Law 108-11)................           80,000   ................  ................          -80,000   ................
Nonproliferation, anti-terrorism, demining and related                  304,408           385,200           385,200           +80,792   ................
 programs.....................................................
        (By transfer).........................................  ................  ................          (15,000)         (+15,000)         (+15,000)
    Emergency supplemental (Public Law 108-11)................           28,000   ................  ................          -28,000   ................
                                                               -----------------------------------------------------------------------------------------
      Subtotal, Department of State...........................        2,170,294         2,200,947         2,129,947           -40,347           -71,000

                  Department of the Treasury

International Affairs Technical Assistance....................           10,730            14,000            12,000            +1,270            -2,000
Debt restructuring............................................  ................          395,000           195,000          +195,000          -200,000
                                                               -----------------------------------------------------------------------------------------
      Subtotal, Department of the Treasury....................           10,730           409,000           207,000          +196,270          -202,000
                                                               =========================================================================================
      Total, title II, Bilateral economic assistance..........       15,461,938        12,565,580        11,877,929        -3,584,009          -687,651
          Appropriations......................................      (10,139,638)      (12,565,580)      (11,877,929)      (+1,738,291)        (-687,651)
          Emergency appropriations............................       (5,322,300)  ................  ................      (-5,322,300)  ................
      (By transfer)...........................................         (121,857)          (21,000)         (116,000)          (-5,857)         (+95,000)
      (Transfer out)..........................................          (-9,461)         (-21,000)         (-84,000)         (-74,539)         (-63,000)
                                                               =========================================================================================
                TITLE III--MILITARY ASSISTANCE

              FUNDS APPROPRIATED TO THE PRESIDENT

International Military Education and Training.................           79,480            91,700            91,700           +12,220   ................
Foreign Military Financing Program:
    Grants:
        Camp David countries..................................        3,377,900         3,460,000         3,460,000           +82,100   ................
        Other.................................................          667,632           954,000           924,000          +256,368           -30,000
        Emergency supplemental (Public Law 108-11)............        2,059,100   ................  ................       -2,059,100   ................
            (Transfer out)....................................  ................  ................         (-32,000)         (-32,000)         (-32,000)
                                                               -----------------------------------------------------------------------------------------
              Subtotal, grants................................        6,104,632         4,414,000         4,384,000        -1,720,632           -30,000

    (Limitation on administrative expenses)...................          (38,000)          (40,000)          (40,000)          (+2,000)  ................
    (Transfer out)............................................         (-92,396)  ................  ................         (+92,396)  ................
    Emergency supplemental (Public Law 108-11) (Transfer out).         (-20,000)  ................  ................         (+20,000)  ................
    Associated outlays:
        Israel................................................  ................  ................  ................  ................  ................
        Egypt.................................................  ................  ................  ................  ................  ................
        Other.................................................  ................  ................  ................  ................  ................
                                                               -----------------------------------------------------------------------------------------
          Total, Foreign Military Financing...................        6,104,632         4,414,000         4,384,000        -1,720,632           -30,000

Peacekeeping operations.......................................          114,252            94,900            84,900           -29,352           -10,000
    Emergency supplemental (Public Law 108-11)................          100,000   ................  ................         -100,000   ................
                                                               =========================================================================================
      Total, title III, Military assistance...................        6,398,364         4,600,600         4,560,600        -1,837,764           -40,000
          Appropriations......................................       (4,239,264)       (4,600,600)       (4,560,600)        (+321,336)         (-40,000)
          Emergency appropriations............................       (2,159,100)  ................  ................      (-2,159,100)  ................
          (Transfer out)......................................        (-112,396)  ................         (-32,000)         (+80,396)         (-32,000)
      (Limitation on administrative expenses).................          (38,000)          (40,000)          (40,000)          (+2,000)  ................
                                                               =========================================================================================

          TITLE IV--MULTILATERAL ECONOMIC ASSISTANCE

              FUNDS APPROPRIATED TO THE PRESIDENT

             International Financial Institutions

                       World Bank Group

Contribution to the International Bank for Reconstruction and           146,852           184,997           170,997           +24,145           -14,000
 Development: Global Environment Facility.....................
Contribution to the International Development Association.....          844,475           976,825           976,825          +132,350   ................
Contribution to Multilateral Investment Guarantee Agency......            1,620             4,002             1,124              -496            -2,878
    (Limitation on callable capital subscriptions)............           (7,610)          (16,340)          (16,340)          (+8,730)  ................
                                                               -----------------------------------------------------------------------------------------
      Total, World Bank Group.................................          992,947         1,165,824         1,148,946          +155,999           -16,878

Contribution to the Inter-American Development Bank:
    Contribution to the Inter-American Investment Corporation.           18,233            30,898             8,898            -9,335           -22,000
    Contribution to the Enterprise for the Americas                      24,431            32,614            30,614            +6,183            -2,000
     Multilateral Investment Fund.............................
                                                               -----------------------------------------------------------------------------------------
      Total, Inter-American Development Bank..................           42,664            63,512            39,512            -3,152           -24,000

Contribution to the Asian Development Bank: Contribution to              97,250           151,921           136,921           +39,671           -15,000
 the Asian Development Fund...................................

Contribution to the African Development Bank:
    Paid-in capital...........................................            5,071             5,105             5,105               +34   ................
    (Limitation on callable capital subscriptions)............          (79,603)          (79,610)          (79,610)              (+7)  ................
    Contribution to the African Development Fund..............          107,371           118,081           118,081           +10,710   ................
                                                               -----------------------------------------------------------------------------------------
      Total, African Development Bank.........................          112,442           123,186           123,186           +10,744   ................

Contribution to the European Bank for Reconstruction and
 Development:
    Paid-in capital...........................................           35,572            35,431            35,431              -141   ................
    (Limitation on callable capital subscriptions)............         (123,328)         (122,085)         (122,085)          (-1,243)  ................

Contribution to the International Fund for Agricultural                  14,906            15,004            15,004               +98   ................
 Development..................................................
                                                               -----------------------------------------------------------------------------------------
      Total, International Financial Institutions.............        1,295,781         1,554,878         1,499,000          +203,219           -55,878
                                                               =========================================================================================
           International Organizations and Programs

Appropriation.................................................          193,882           314,550           314,550          +120,668   ................
                                                               =========================================================================================
      Total, title IV, Multilateral economic assistance.......        1,489,663         1,869,428         1,813,550          +323,887           -55,878
      (Limitation on callable capital subscript)..............         (210,541)         (218,035)         (218,035)          (+7,494)  ................
                                                               =========================================================================================
      Grand total:
          New budget (obligational) authority.................       23,718,563        18,932,588        18,136,859        -5,581,704          -795,729
          (By transfer).......................................         (121,857)          (21,000)         (116,000)          (-5,857)         (+95,000)
          (Transfer out)......................................        (-121,857)         (-21,000)        (-116,000)          (+5,857)         (-95,000)
          (Limitation on administrative expenses).............          (38,000)          (40,000)          (40,000)          (+2,000)  ................
          (Limitation on callable capital subscript)..........         (210,541)         (218,035)         (218,035)          (+7,494)  ................
--------------------------------------------------------------------------------------------------------------------------------------------------------



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