[Senate Report 108-160]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 296
108th Congress                                                   Report
                                 SENATE
 1st Session                                                    108-160

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



 
EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR IRAQ AND AFGHANISTAN SECURITY 
                        AND RECONSTRUCTION, 2004
                                _______
                                

                October 2, 2003.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 1689]

    The Committee on Appropriations reports the bill (S. 1689) 
making emergency supplemental appropriations for Iraq and 
Afghanistan security and reconstruction for the fiscal year 
ending September 30, 2004, and for other purposes, reports 
favorably thereon and recommends that the bill do pass.


                            C O N T E N T S

                              ----------                              
                                                                   Page
Background.......................................................     3
Title I--National Security:
    Chapter 1: Subcommittee on Defense...........................     4
    Chapter 2: Subcommittee on Military Construction.............    10
    Chapter 3: General Provisions, This Title....................    11
Title II--International Affairs:
    Chapter 1: Subcommittee on Commerce, Justice, and State, the 
        Judiciary, and Related Agencies..........................    13
    Chapter 2: Subcommittee on Foreign Operations, Export 
      Financing, and Related Programs............................    14
    Chapter 3: General Provisions, This Title....................    17
Title III--General Provision, This Act...........................    19
Compliance With Paragraph 7, Rule XVI of the Standing Rules of 
  the Sen- 
  ate............................................................    20
Compliance With Paragraph 7(c), Rule XXVI of the Standing Rules 
  of the Senate..................................................    20
Compliance With Paragraph 12, Rule XXVI of the Standing Rules of 
  the Senate.....................................................    21
Budgetary Impact.................................................    21

                               BACKGROUND

    This bill makes appropriations for the military functions 
of the Department of Defense as it prosecutes the war in Iraq 
and Afghanistan, as well as for relief and reconstruction 
efforts in Iraq and Afghanistan, and to continue anti-terrorism 
efforts around the world.

                                Hearings

    The Committee held hearings on September 22, 24, and 25, 
2003 and heard testimony from Ambassador Paul Bremer; Hon. 
Donald Rumsfeld, Secretary of Defense; General Richard Meyers, 
Chairman, Joint Chiefs of Staff; General John Abizaid, 
Commanding General United States Central Command; Dr. Dov 
Zakheim, Under Secrteary of Defense (Comptroller); Peter 
Rodman, Assistant Secretary of Defense Secretary for 
International Security Affairs; and General Peter Pace, Vice 
Chairman, Joint Chief of Staff from the Department of Defense.

                          Summary of the Bill

    On September 17, 2003, the President submitted requests for 
$87,039,804,000 in new budget authority for programs under the 
Department of Defense, Department of State, United States 
Agency for International Development, and the Iraq Relief and 
Reconstruction Fund. The Committee recommends $87,004,004,000 
in new budget authority.
    The President's supplemental requests are contained in 
budget estimate No. 17, transmitted on September 17, 2003 (H. 
Doc. 108-126).

                          Committee Priorities

    The primary goals of this bill are to fund the ongoing 
military operations in Iraq and Afghanistan as well as relief 
and reconstruction activities in those countries. To accomplish 
the first goal, the Committee is providing $66,560,004,000 to 
prosecute the war in Iraq and Afghanistan. These funds are for 
increased operational tempo, military personnel costs, military 
construction, procurement of equipment, increased maintenance 
and military health care support. To achieve the second goal, 
the Committee is providing $21,444,000,000 to help secure the 
transition to democracy in both Iraq and Afghanistan. These 
funds are for enhanced security and reconstruction activities 
including border enforcement, building a national police 
service in Iraq, standing up a new Iraqi army and continued 
building of the Afghan National Army, reconstituted judicial 
systems, rehabilitation of Iraq's oil infrastructure, and 
provision of basic electricity, water and sewer services and 
other critical reconstruction needs in Iraq and Afghanistan.

                       TITLE I--NATIONAL SECURITY

                               CHAPTER 1

                        Subcommittee on Defense

                         DEPARTMENT OF DEFENSE

2004 supplemental estimate.............................. $65,147,554,000
Committee recommendation................................  65,147,554,000

                           MILITARY PERSONNEL


                      Special Pays and Allowances

    The Supplemental request includes $1,248,200,000 for 
enhanced Special Pays included Family Separation Allowance 
[FSA], Imminent Danger Pay [IDP], and Hostile Duty Pay [HDP]. 
The Department's request would fund FSA and IDP at the enhanced 
levels authorized in the fiscal year 2003 Emergency Wartime 
Supplemental Appropriation Act (Public Law 108-11) for the 
first 3 months of the fiscal year. Beginning January 1, 2004, 
the Department requests that FSA and IDP return to the levels 
authorized prior to enactment of Public Law 108-11, and that 
the Committee authorize an increase in Hardship Duty Pay to 
offset the reductions to FSA and IDP. However, the requested 
increase in HDP would only cover those individuals serving in 
the combat zone in support of Operation Iraqi Freedom and 
Operation Enduring Freedom. The Department's proposal would not 
provide a benefit to those servicemembers who have been 
mobilized and deployed throughout the United States in support 
of Operation Noble Eagle, nor would it provide a benefit to 
those servicemembers deployed overseas in support of other 
contingency operations such as Bosnia and Kosovo. The Committee 
does not approve the Department's request, and instead supports 
the continuation of FSA and IDP at the levels authorized in 
Public Law108-11 for all of fiscal year 2004. The Committee 
directs the Department to use the funds requested for increased 
Hardship Duty Pay to fund the full year increase to FSA and IDP 
for all eligible recipients.

                        Military Personnel, Army

2004 supplemental estimate.............................. $12,858,870,000
Committee recommendation................................  12,858,870,000

    The Committee recommends $12,858,870,000 for Military 
Personnel, Army. The recommendation is equal to the estimate.

                        Military Personnel, Navy

2004 supplemental estimate..............................    $816,100,000
Committee recommendation................................     816,100,000

    The Committee recommends $816,100,000 for Military 
Personnel, Navy. The recommendation is equal to the estimate.

                    Military Personnel, Marine Corps

2004 supplemental estimate..............................    $753,190,000
Committee recommendation................................     753,190,000

    The Committee recommends $753,190,000 for Military 
Personnel, Marine Corps. The recommendation is equal to the 
estimate.

                     Military Personnel, Air Force

2004 supplemental estimate..............................  $3,384,700,000
Committee recommendation................................   3,384,700,000

    The Committee recommends $3,384,700,000 for Military 
Personnel, Air Force. The recommendation is equal to the 
estimate.

                       OPERATION AND MAINTENANCE


                    Operation and Maintenance, Army

2004 supplemental estimate.............................. $24,190,464,000
Committee recommendation................................  24,946,464,000

    The Committee recommends $24,946,464,000 for Operation and 
Maintenance, Army. The recommendation is $756,000,000 above the 
estimate.
    The Committee is concerned that the estimate does not fully 
reflect the Army's contingency costs to sustain ongoing 
operations, or the costs necessary to reset the force. This 
places the Army at considerable financial risk during fiscal 
year 2004. Accordingly, the Committee recommends an increase of 
$756,000,000 to the estimate as follows:



------------------------------------------------------------------------
SAPI body armor/Rapid Fielding Initiative/battlefield      +$300,000,000
 EOD cleanup..........................................
Increased organizational level maintenance                  +200,000,000
 requirements.........................................
Second destination transportation for depot                 +174,000,000
 maintenance..........................................
Theater stabilization communications..................       +72,000,000
Army and Air Force Exchange Service support for              +10,000,000
 deployed forces......................................
------------------------------------------------------------------------

    The Committee has included $858,200,000 for the 
Administrative and Operating Costs for the Coalition 
Provisional Authority [CPA]. The Committee directs the 
Department to use funds from the Iraq Freedom Fund if the 
requirements for CPA exceed the $858,200,000 appropriated under 
this heading.

                    Operation and Maintenance, Navy

2004 supplemental estimate..............................  $2,106,258,000
Committee recommendation................................   1,976,258,000

    The Committee recommends $1,976,258,000 for Operation and 
Maintenance, Navy. The recommendation is $130,000,000 below the 
estimate.
    The Committee recommends a reduction of $130,000,000 to the 
estimate as follows:



------------------------------------------------------------------------
Excess increased operational tempo....................     -$130,000,000
------------------------------------------------------------------------

                Operation and Maintenance, Marine Corps

2004 supplemental estimate..............................  $1,198,981,000
Committee recommendation................................   1,198,981,000

    The Committee recommends $1,198,981,000 for Operation and 
Maintenance, Marine Corps. The recommendation is equal to the 
estimate.

                  Operation and Maintenance, Air Force

2004 supplemental estimate..............................  $5,948,368,000
Committee recommendation................................   5,516,368,000

    The Committee recommends $5,516,368,000 for Operation and 
Maintenance, Air Force. The recommendation is $432,000,000 
below the estimate.
    The Committee recommends a reduction of $432,000,000 to the 
estimate as follows:



------------------------------------------------------------------------
Unjustified ``incremental contingency costs''.........     -$200,000,000
Excess inter/intra-theater airlift....................      -132,000,000
Excess DPEM...........................................      -100,000,000
------------------------------------------------------------------------

                Operation and Maintenance, Defense-Wide

2004 supplemental estimate..............................  $4,618,452,000
Committee recommendation................................   4,218,452,000

    The Committee recommends $4,218,452,000 for Operation and 
Maintenance, Defense-Wide. The recommendation is $400,000,000 
below the estimate.
    The Committee recommends a reduction of $400,000,000 to the 
estimate as follows:



------------------------------------------------------------------------
Excess support to key cooperating nations.............     -$400,000,000
------------------------------------------------------------------------

            Operation and Maintenance, Marine Corps Reserve

2004 supplemental estimate..............................     $16,000,000
Committee recommendation................................      16,000,000

    The Committee recommends $16,000,000 for Operation and 
Maintenance, Marine Corps Reserve. The recommendation is equal 
to the estimate.

              Operation and Maintenance, Air Force Reserve

2004 supplemental estimate..............................     $53,000,000
Committee recommendation................................      53,000,000

    The Committee recommends $53,000,000 for Operation and 
Maintenance, Air Force Reserve. The recommendation is equal to 
the estimate.

             Operation and Maintenance, Air National Guard

2004 supplemental estimate..............................    $214,000,000
Committee recommendation................................     214,000,000

    The Committee recommends $214,000,000 for Operation and 
Maintenance, Air National Guard. The recommendation is equal to 
the estimate.

             Overseas Humanitarian, Disaster, and Civic Aid

2004 supplemental estimate..............................     $35,500,000
Committee recommendation................................      35,500,000

    The Committee recommends $35,500,000 for Overseas 
Humanitarian, Disaster, and Civic Aid. The recommendation is 
equal to the estimate.

                           Iraq Freedom Fund

2004 supplemental estimate..............................  $1,988,600,000
Committee recommendation................................   1,988,600,000

    The Committee recommends $1,988,600,000 for the Iraq 
Freedom Fund. The recommendation is equal to the estimate.

                              PROCUREMENT


                       Missile Procurement, Army

2004 supplemental estimate..............................      $6,200,000
Committee recommendation................................       6,200,000

    The Committee recommends $6,200,000 for Missile 
Procurement, Army. The recommendation is equal to the estimate.

        Procurement of Weapons and Tracked Combat Vehicles, Army

2004 supplemental estimate..............................     $46,000,000
Committee recommendation................................     104,000,000

    The Committee recommends $104,000,000 for Procurement of 
Weapons and Tracked Combat Vehicles, Army. The recommendation 
is $58,000,000 above the estimate.
    The Committee recommends an increase of $58,000,000 to the 
estimate as follows:



------------------------------------------------------------------------
Replenishment of Army Prepositioned Stock items             +$58,000,000
 destroyed during combat operations...................
------------------------------------------------------------------------

                        Other Procurement, Army

2004 supplemental estimate..............................    $930,687,000
Committee recommendation................................   1,078,687,000

    The Committee recommends $1,078,687,000 for Other 
Procurement, Army. The recommendation is $148,000,000 above the 
estimate.
    The Committee recommends an increase of $148,000,000 to the 
estimate as follows:



------------------------------------------------------------------------
Theater stabilization communications..................      +$64,000,000
Replenishment of Army Prepositioned Stock items              +84,000,000
 destroyed during combat operations...................
------------------------------------------------------------------------

                       Aircraft Procurement, Navy

2004 supplemental estimate..............................    $128,600,000
Committee recommendation................................     128,600,000

    The Committee recommends $128,600,000 for Aircraft 
Procurement, Navy. The recommendation is equal to the estimate.

                        Other Procurement, Navy

2004 supplemental estimate..............................     $76,357,000
Committee recommendation................................      76,357,000

    The Committee recommends $76,357,000 for Other Procurement, 
Navy. The recommendation is equal to the estimate.

                       Procurement, Marine Corps

2004 supplemental estimate..............................    $123,397,000
Committee recommendation................................     123,397,000

    The Committee recommends $123,397,000 for Procurement, 
Marine Corps. The recommendation is equal to the estimate.

                    Aircraft Procurement, Air Force

2004 supplemental estimate..............................     $40,972,000
Committee recommendation................................      40,972,000

    The Committee recommends $40,972,000 for Aircraft 
Procurement, Air Force. The recommendation is equal to the 
estimate.

                     Missile Procurement, Air Force

2004 supplemental estimate..............................     $20,450,000
Committee recommendation................................      20,450,000

    The Committee recommends $20,450,000 for Missile 
Procurement, Air Force. The recommendation is equal to the 
estimate.

                      Other Procurement, Air Force

2004 supplemental estimate..............................  $3,441,006,000
Committee recommendation................................   3,441,006,000

    The Committee recommends $3,441,006,000 for Other 
Procurement, Air Force. The recommendation is equal to the 
estimate.

                       Procurement, Defense-Wide

2004 supplemental estimate..............................    $435,635,000
Committee recommendation................................     435,635,000

    The Committee recommends $435,635,000 for Procurement, 
Defense-Wide. The recommendation is equal to the estimate.

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION


            Research, Development, Test and Evaluation, Navy

2004 supplemental estimate..............................     $34,000,000
Committee recommendation................................      34,000,000

    The Committee recommends $34,000,000 for Research, 
Development, Test and Evaluation, Navy. The recommendation is 
equal to the estimate.

         Research, Development, Test and Evaluation, Air Force

2004 supplemental estimate..............................     $39,070,000
Committee recommendation................................      39,070,000

    The Committee recommends $39,070,000 for Research, 
Development, Test and Evaluation, Air Force. The recommendation 
is equal to the estimate.

        Research, Development, Test and Evaluation, Defense-Wide

2004 supplemental estimate..............................    $265,817,000
Committee recommendation................................     265,817,000

    The Committee recommends $265,817,000 for Research, 
Development, Test and Evaluation, Defense-Wide. The 
recommendation is equal to the estimate.

                     REVOLVING AND MANAGEMENT FUNDS


                  Working Capital Funds, Defense-Wide

2004 supplemental estimate..............................    $600,000,000
Committee recommendation................................     600,000,000

    The Committee recommends $600,000,000 for Defense Working 
Capital Funds. The recommendation is equal to the estimate.

                     National Defense Sealift Fund

2004 supplemental estimate..............................     $24,000,000
Committee recommendation................................      24,000,000

    The Committee recommends $24,000,000 for the National 
Defense Sealift Fund. The recommendation is equal to the 
estimate.

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS


                         Defense Health Program

2004 supplemental estimate..............................    $658,380,000
Committee recommendation................................     658,380,000

    The Committee recommends $658,380,000 for the Defense 
Health Program. The recommendation is equal to the estimate.

         Drug Interdiction and Counter-Drug Activities, Defense

2004 supplemental estimate..............................     $73,000,000
Committee recommendation................................      73,000,000

    The Committee recommends $73,000,000 for Drug Interdiction 
and Counter-Drug Activities, Defense. The recommendation is 
equal to the estimate.

                            RELATED AGENCIES


               Intelligence Community Management Account

2004 supplemental estimate..............................     $21,500,000
Committee recommendation................................      21,500,000

    The Committee recommends $21,500,000 for the Intelligence 
Community Management Account. The recommendation is equal to 
the estimate.

                               CHAPTER 2


                 Subcommittee on Military Construction


                         MILITARY CONSTRUCTION


                      Military Construction, Army

2004 supplemental estimate..............................    $119,900,000
Committee recommendation................................     119,900,000

    The Committee recommends an additional $119,900,000 for 
Military Construction, Army, to be used as follows:



------------------------------------------------------------------------
Base Camp Support Facilities, Iraq......................    $115,900,000
Planning and Design.....................................       4,000,000
------------------------------------------------------------------------

    The Committee fully supports the administration's request 
to provide adequate support facilities for United States 
soldiers serving in base camps in Iraq, but is concerned that 
project details and justifications contained in the 
administration's request for these facilities were not 
sufficiently defined. The Committee therefore directs that the 
Army brief the congressional defense committees on its final 
plans for these facilities before obligating any of the 
military construction funds appropriated in this Act.

                    Military Construction, Air Force

2004 supplemental estimate..............................    $292,550,000
Committee recommendation................................     292,550,000

    The Committee recommends an additional $292,550,000 for 
Military Construction, Air Force, to be used as follows:



------------------------------------------------------------------------
Airfield Runway Repair, Bagram, Afghanistan.............     $48,000,000
Airfreight Terminal, Dover Air Force Base, Delaware.....      56,000,000
AEF FOL Communications Remote Switch Facility, Diego           3,450,000
 Garcia.................................................
Munitions Maintenance, Storage, and Wash Pad, Camp             5,000,000
 Darby, Italy...........................................
Ramp and Fuel Hydrant System, Al Dhafra, United Arab          47,000,000
 Emirates...............................................
Airlift Ramp, Balad Air Base, Iraq......................      18,000,000
Airlift Aprons (Confidential Location)..................      17,500,000
Tactical/Strategic Ramp Expansion, Al Udeid Air Base,         20,000,000
 Qatar..................................................
Refueler Ramp, Al Udeid Air Base, Qatar.................      40,000,000
Temporary Cantonment Area, Al Dhafra Air Base, United         15,300,000
 Arab Emirates..........................................
Planning and Design.....................................      22,300,000
------------------------------------------------------------------------

    The Committee supports the administration's request for 
additional military construction funds for Air Force facilities 
in Southwest Asia. However, while the Air Force has provided 
detail about specific projects, it has provided little 
information about its overall plan for facilities in the 
theater of operations and how projects contained in the 
supplemental request fit into that plan. The Committee 
therefore directs the Air Force to report to the congressional 
defense committees, in both classified and unclassified form, 
on its master plan for facilities in the Central Command area 
of responsibility, including the planned disposition of 
aircraft and personnel, no later than December 1, 2003.

                               CHAPTER 3


                     GENERAL PROVISIONS, THIS TITLE

    Sec. 301. The Committee recommendation amends a provision 
proposed by the Administration which allows the Department of 
Defense to reimburse the Services for a drawdown authority 
under the Afghanistan Freedom Support Act of 2002.
    Sec. 302. The Committee recommendation modifies a provision 
proposed by the Administration which provides the Secretary of 
Defense with additional transfer authority.
    Sec. 303. The Committee recommendation includes a provision 
proposed by the Administration which provides specific 
authorization for the funds appropriated in this title for 
intelligence activities.
    Sec. 304. The Committee recommendation includes a new 
provision regarding the alteration of command responsibility or 
permanent assignment of forces.
    Sec. 305. The Committee recommendation includes a provision 
proposed by the Administration which sustains existing 
authority to cover travel and transportation benefits for 
family members of military personnel injured during Operation 
Iraqi Freedom, Operation Enduring Freedom, or Operation Noble 
Eagle.
    Sec. 306. The Committee recommendation includes a provision 
that sustains the increase in the statutory maximum payable for 
Imminent Danger Pay and Family Separation Allowance.
    Sec. 307. The Committee recommendation includes a provision 
recommended by the Administration which allows the Department 
to make necessary accounting adjustments to the Defense 
Emergency Response Fund.
    Sec. 308. The Committee recommendation includes a new 
provision that requires the Secretary of Defense to provide a 
report to the Committees on Appropriations.
    Sec. 309. The Committee recommendation includes a new 
provision that requires the Department of Defense to describe 
alternatives for replacing the capabilities of the KC-135 fleet 
of aircraft.
    Sec. 310. The Committee recommendation includes a new 
provision which limits the use of procurement and research, 
development, test and evaluation funds.
    Sec. 311. The Committee recommendation includes a provision 
proposed by the Administration which allows the Department to 
use funds for supplies, services, transportation, and other 
logistical support of troops supporting military and stability 
operations in Iraq.
    Sec. 312. The Committee recommends a provision proposed by 
the Administration which allows training and equipping the 
Afghanistan National Army and the New Iraqi Army.
    Sec. 313. The Committee recommendation includes a provision 
requiring a report on military readiness.
    Sec. 314. The Committee recommendation includes a provision 
regarding the exemption of certain members of the Armed Forces 
from the requirement to pay subsistence charges while 
hospitalized.
    Sec. 315. The Committee recommends a general provision 
which provides the Secretary of Defense with additional 
authority for contingency military construction expenses 
necessary to protect against or respond to acts of terrorism, 
or to support Department of Defense operations in Iraq.

                    TITLE II--INTERNATIONAL AFFAIRS

                               CHAPTER 1

   Subcommittee on Commerce, Justice, and State, the Judiciary, and 
                            Related Agencies

                          DEPARTMENT OF STATE

                   Administration of Foreign Affairs

                    DIPLOMATIC AND CONSULAR PROGRAMS

                         (INCLUDING RESCISSION)

2004 supplemental estimate..............................     $76,300,000
Committee recommendation................................      35,800,000

    The Committee recommends a rescission and re-appropriation 
of $35,800,000 for the costs of security and operations related 
to the establishment of United States diplomatic presences in 
Iraq and Afghanistan. The recommendation is $40,500,000 below 
the request. The problem of Machine Readable Visa [MRV] fee 
shortfalls is addressed under the Emergencies in the Diplomatic 
and Consular Service account. Funds previously appropriated 
under this heading in the Emergency Wartime Supplemental 
Appropriations Act of 2003 are subject to the standard 
reprogramming procedures set forth in section 605, Division B 
of Public Law 108-7.

            EMBASSY SECURITY, CONSTRUCTION, AND MAINTENANCE

2004 supplemental estimate..............................     $60,500,000
Committee recommendation................................................

    The Committee does not recommend any funding for Embassy 
security, construction and maintenance. The recommendation is 
$60,500,000 below the supplemental budget request. The request 
included $60,500,000 to construct an interim United States 
diplomatic facility in Iraq. The Committee reminds the 
Department that $61,500,000 was provided for this purpose in 
Public Law 108-11, the Emergency Wartime Supplemental 
Appropriations Act of 2003. The Committee is aware of the 
Department's reprogramming request to utilize $43,900,000 of 
these funds to construct an interim facility for United States 
Agency for International Development and other United States 
Government employees engaged in reconstruction efforts in 
Afghanistan and $16,600,000 of these funds to cover the 
personnel, transportation, and equipment costs of United States 
Government officials tasked with advising the Afghan 
transitional government on reconstruction. This request is 
contained under the ``Capital investment fund'' of chapter 2 of 
this title. Also, the Committee approves the Department's 
reprogramming request to utilize $14,500,000 under Worldwide 
Security Upgrades for security requirements in Afghanistan, and 
directs that these funds only be used for the security of the 
main United States Embassy compound and security assistance to 
United Nations offices and personnel and non-governmental 
organization offices and personnel.

           EMERGENCIES IN THE DIPLOMATIC AND CONSULAR SERVICE

2004 supplemental estimate..............................     $50,000,000
Committee recommendation................................      90,500,000

    The Committee recommends $90,500,000 for Emergencies in the 
Diplomatic and Consular Service. The recommendation is 
$40,500,000 above the supplemental budget request. Funds 
provided under this heading will ensure that rewards of up to 
$25,000,000 may be paid for Osama bin Laden and Saddam Hussein. 
The recommendation also includes language directing that 
$2,000,000 of previously appropriated funds be made available 
for a reward for the person deemed most responsible by the 
Special Court for Sierra Leone for the war crimes, crimes 
against humanity, and serious violations of international 
humanitarian law that took place during Sierra Leone's civil 
war. The recommendation also includes language directing that 
$8,451,000 in carryover balances be transferred to and merged 
with the Diplomatic and Consular Programs account for the 
Department's consular, or ``border security'' operations.

                               CHAPTER 2


   Subcommittee on Foreign Operations, Export Financing, and Related 
                                Programs


                     BILATERAL ECONOMIC ASSISTANCE


                  FUNDS APPROPRIATED TO THE PRESIDENT


           United States Agency for International Development


   OPERATING EXPENSES OF THE UNITED STATES AGENCY FOR INTERNATIONAL 
                              DEVELOPMENT

2004 supplemental estimate..............................     $40,000,000
Committee recommendation................................      40,000,000

    The Committee provides $40,000,000 for an additional amount 
for Operating Expenses of the United States Agency for 
International Development for costs associated with 
reconstruction and other activities in Iraq and Afghanistan.

                        CAPITAL INVESTMENT FUND

2004 supplemental estimate..............................................
Committee recommendation................................     $60,500,000

    The Committee provides $60,500,000 for an additional amount 
for the Capital Investment Fund for safe and secure facilities 
in Afghanistan, Iraq, and elsewhere.

                  OTHER BILATERAL ECONOMIC ASSISTANCE


                  FUNDS APPROPRIATED TO THE PRESIDENT


                  Iraq Relief and Reconstruction Fund


                     (INCLUDING TRANSFERS OF FUNDS)

2004 supplemental estimate.............................. $20,304,000,000
Committee recommendation................................  20,304,000,000

    The Committee provides $20,304,000,000 for the Iraq Relief 
and Reconstruction Fund for security, rehabilitation and 
reconstruction in Iraq.
    The Committee notes that funds appropriated under this 
heading are subject to the regular notification procedures of 
the Committees on Appropriations, except that notification 
shall be transmitted at least 5 days in advance of the 
obligation of funds. The Committee also provides that funds 
allocated under this heading for programs and sectors may be 
reallocated by the President for those programs and sectors.
    The Committee strongly supports programs and activities to 
promote freedom, democratic institutions, and the rule of law 
in Iraq and provides that not less than $100,000,000 shall be 
made available for democracy building activities in that 
country in support of the development and ratification of a 
constitution, national elections and women's development 
programs. The Committee directs that not less than $5,000,000 
be made available to Iraqi nongovernmental organizations in 
Iraq in a timely manner, in grants of up to $100,000. The 
Committee also expects sufficient funding to be provided to the 
National Endowment for Democracy, the International Republican 
Institute and the National Democratic Institute for political 
party and other democracy building activities.
    The Committee recommends not less than $20,000,000 for 
media outreach activities in Iraq that utilizes low cost, 
advanced technology tools.
    The Committee recommends $5,000,000 for a program, such as 
that administered by the International Commission on Missing 
Persons, to locate, recover, and identify Iraqis missing as a 
result of authoritarian rule or conflict.
    The Committee again provides that funds shall be made 
available for Iraqi civilians who suffer losses as a result of 
military operations in Iraq. The Committee supports the 
provision of medical, rehabilitation, shelter, microcredit and 
other appropriate assistance to these individuals. The 
Committee expects all relevant agencies and organizations to 
coordinate efforts in providing this assistance.
    The Committee recognizes that conflict and decades of 
neglect devastated Iraq's health infrastructure, resulting in a 
lack of medical equipment and supplies, and health 
professionals with expertise in pediatric medical specialties. 
The Committee is concerned that children with critical health 
problems cannot obtain life-saving treatments in Iraq. The 
Committee strongly supports activities that can have an 
immediate impact in addressing the needs of these children, 
such as the Emergency Health Services for the Children of Iraq 
program sponsored jointly by Kurdish Human Rights Watch and 
Vanderbilt University Children's Hospital.
    The Committee notes the important contributions that 
nongovernmental organizations have made to relief and 
reconstruction efforts in Iraq, and urges that they be utilized 
to the maximum extent practicable. The Committee also 
recommends that organizations with experience in post-conflict 
governance matters--such as the United States Institute of 
Peace--be utilized in reconstruction efforts in Iraq and 
Afghanistan.
    The Committee recommends that not less than $2,000,000 be 
made available to support organizations working in Iraq, 
Afghanistan and other complex humanitarian emergency and war 
settings, to apply public health strategies and epidemiology to 
mitigate the impact of the conflict on civilian populations. 
Programs supported should include those which collect, analyze, 
and use multi-sector data for programmatic decision-making and 
evaluation of assistance programs during and after conflict.

                         Economic Support Fund

2004 supplemental estimate..............................    $422,000,000
Committee recommendation................................     422,000,000

    The Committee provides $422,000,000 for an additional 
amount for Economic Support Fund (ESF) for accelerated 
assistance for Afghanistan.
    The Committee also provides authority to use up to 
$200,000,000 in Economic Support Funds contained in the Foreign 
Operations, Export Financing, and Related Programs 
Appropriations Act, 2004 for debt reduction for Pakistan.
    The Committee recognizes the progress of Internews in the 
establishment of independent news media in Afghanistan. 
However, absent additional long-term support opportunities for 
advancement may be lost. The Committee recommends that 
additional funds be made available for the expansion of local 
stations to regional stations, the establishment of national 
independent broadcasting, and support for daily news programs.
    The Committee directs that not less than $15,000,000 be 
made available for media outreach activities in Afghanistan 
that utilizes low cost, advanced technology tools.
    In addition to other purposes for which ESF assistance is 
used in Afghanistan, not less than $5,000,000 should be made 
available through appropriate humanitarian organizations for 
additional food, clothing, heating and cooking fuel, emergency 
shelter materials, and other basic necessities for displaced 
Afghans in Kabul.

        United States Emergency Fund for Complex Foreign Crises

2004 supplemental estimate..............................    $100,000,000
Committee recommendation................................     100,000,000

    The Committee provides $100,000,000 for the United States 
Emergency Fund for Complex Foreign Crises. While the Committee 
understands the need for flexibility in meeting unforeseen 
complex foreign crises, it includes congressional notification 
for these funds, which may be waived if human health or welfare 
is at substantial risk.
    Among other activities, the Committee expects these funds 
to support operations and programs to prevent or respond to 
foreign territorial disputes, armed ethnic and civil conflicts 
that pose threats to regional and international peace, and acts 
of ethnic cleansing, mass killing or genocide. In addition, the 
Committee supports the use of these funds for peace and 
humanitarian efforts, such as required in Liberia.

                          DEPARTMENT OF STATE


          International Narcotics Control and Law Enforcement

2004 supplemental estimate..............................    $120,000,000
Committee recommendation................................     120,000,000

    The Committee provides $120,000,000 for an additional 
amount in International Narcotics Control and Law Enforcement 
assistance for Afghanistan. The Committee expects $110,000,000 
to be used to train, equip, and deploy additional police in 
Afghanistan, and $10,000,000 to be used to support the training 
of prosecutors, public defenders and judges in Afghanistan and 
to meet infrastructure needs of the Afghan legal sector.

    Nonproliferation, Anti-Terrorism, Demining and Related Programs

2004 supplemental estimate..............................     $35,000,000
Committee recommendation................................      35,000,000

    The Committee provides $35,000,000 for an additional amount 
for Nonproliferation, Anti-Terrorism, Demining and Related 
Programs to support anti-terrorism training and equipment needs 
in Afghanistan.

                          MILITARY ASSISTANCE


                  FUNDS APPROPRIATED TO THE PRESIDENT


                   Foreign Military Financing Program

2004 supplemental estimate..............................    $222,000,000
Committee recommendation................................     222,000,000

    The Committee provides $222,000,000 for the Foreign 
Military Financing Program. The Committee strongly supports the 
use of these funds to accelerate assistance to build the new 
Afghanistan army.

                        Peacekeeping Operations

2004 supplemental estimate..............................     $50,000,000
Committee recommendation................................      50,000,000

    The Committee provides $50,000,000 for an additional amount 
for Peacekeeping Operations to support multinational 
peacekeeping needs in Iraq and other unanticipated peacekeeping 
crises.

                               CHAPTER 3


                     GENERAL PROVISIONS, THIS TITLE

    Sec. 2301. The Committee includes transfer authority 
between accounts in chapter 2 of this title, with the total 
amount authorized to be transferred not to exceed $200,000,000. 
The Committee directs that it be consulted before this 
authority is exercised. The Committee includes the same 
notification requirement as contained in section 501 of Public 
Law 108-11.
    Sec. 2302. The Committee includes authority permitting 
assistance or other financing contained in chapter 2 of this 
title for Iraq notwithstanding any other provision of law.
    Sec. 2303. The Committee includes authority to allow 
appropriations provided in chapter 2 of this title to be made 
available without specific authorization of such appropriation.
    Sec. 2304. The Committee extends section 1503 of Public Law 
108-11 through September 30, 2005. The Committee notes that 
extending the inapplicability of section 307 of the Foreign 
Assistance Act of 1961 is particularly important as the United 
States pursues long-range efforts to assist Iraq and marshal 
resources from the international community.
    Sec. 2305. The Committee amends the first proviso of 
section 1504 of Public Law 108-11 to include Iraqi military, 
private security force, other official security forces, police 
force, or forces from other countries in Iraq supporting United 
States efforts in Iraq. The Committee notes that other official 
security forces include Ministry of Interior forces, border 
guards, and civil defense forces. The Committee also notes that 
a private security force include those providing security 
services to contractors, nongovernmental organizations or other 
organizations affiliated with United States efforts in Iraq.
    Sec. 2306. The Committee extends key provisions of Public 
Law 107-57 regarding restrictions that would otherwise limit 
assistance to Pakistan.
    Sec. 2307. The Committee includes authority to allow the 
Overseas Private Investment Corporation to provide political 
risk insurance, direct loans, and guarantees in Iraq.
    Sec. 2308. The Committee includes a notification 
requirement for certain accounts under chapter 2 of this title.
    Sec. 2309. The Committee provides that the Secretary of 
State shall submit a report on a monthly basis detailing Iraq 
oil production and oil revenues.
    Sec. 2310. The Committee directs that none of the funds in 
this Act may be used to pay debts incurred by the former 
government.

                 TITLE III--GENERAL PROVISION, THIS ACT

    Sec. 3001. The Committee recommends that all the funds in 
the bill be designated by the Congress as emergency 
requirements pursuant to section 502 of House Concurrent 
Resolution 95 (108th Congress), the fiscal year 2004 concurrent 
resolution on the budget, as proposed by the President.

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

    Paragraph 7 of rule XVI requires that Committee reports on 
general appropriations bills identify, with particularity, each 
Committee amendment to the House bill ``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.''
    The accompanying bill contains the following items which 
lack authorization:
    The Committee is filing an original bill.

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

    Pursuant to paragraph 7(c) of rule XXVI, on September 30, 
2003, the Committee ordered reported S. 1689, an original bill 
making emergency appropriations Iraq and Afghanistan security 
and reconstruction for the fiscal year ending September 30, 
2004, subject to amendment and subject to the budget 
allocation, 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 reports 
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 Italics; 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

    Section 308(a)(1)(A) of the Congressional Budget and 
Impoundment Control Act of 1974 (Public Law 93-344), as 
amended, requires that the report accompanying a bill providing 
new budget authority contain a statement detailing how that 
authority compares with the reports submitted under section 302 
of the act for the most recently agreed to concurrent 
resolution on the budget for the fiscal year. All the funds 
provided in this bill are designated by Congress as emergency 
requirements.

                    Five-Year Projection of Outlays

    In compliance with section 308(a)(1)(C) of the 
Congressional Budget Act of 1974 (Public Law 93-344), as 
amended, the following table contains 5-year projections 
associated with the budget authority provided in the 
accompanying bill:

------------------------------------------------------------------------
                                                            Millions of
                                                              dollars
------------------------------------------------------------------------
Budget authority: Fiscal year 2004......................          87,004
Outlays:
    Fiscal year 2004....................................          36,695
    Fiscal year 2005....................................          33,098
    Fiscal year 2006....................................          11,721
    Fiscal year 2007....................................           3,037
    Fiscal year 2008 and future years...................           1,872
------------------------------------------------------------------------
Note: The above table includes both mandatory and discretionary
  appropriations.

               Assistance to State and Local Governments

    In accordance with section 308(a)(1)(D) of the 
Congressional Budget Act of 1974 (Public Law 93-344), as 
amended, the financial assistance to State and local 
governments is as follows:

------------------------------------------------------------------------
                                                            Millions of
                                                              dollars
------------------------------------------------------------------------
New budget authority....................................  ..............
Fiscal year 2004 outlays................................  ..............
------------------------------------------------------------------------


                       COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                          Committee
                                                                                                                                        recommendation
Doc. No.                                                                                       Supplemental          Committee          compared with
                                                                                                 estimate          recommendation        supplemental
                                                                                                                                      estimate (+ or ^)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                             TITLE I

                                        NATIONAL SECURITY

                                            CHAPTER 1

                                      DEPARTMENT OF DEFENSE

                                       Military Personnel
 108-126 Military Personnel, Army (emergency)                                                    12,858,870           12,858,870   ...................
 108-126 Military Personnel, Navy (emergency)                                                       816,100              816,100   ...................
 108-126 Military Personnel, Marine Corps (emergency)                                               753,190              753,190   ...................
 108-126 Military Personnel, Air Force (emergency)                                                3,384,700            3,384,700   ...................
                                                                                        ----------------------------------------------------------------
               Total, Military Personnel                                                         17,812,860           17,812,860   ...................

                                    Operation and Maintenance

 108-126 Operation and Maintenance, Army (emergency)                                             24,190,464   ...................         -24,190,464
      --     (Contingent emergency appropriations)                                       ...................          24,946,464          +24,946,464
 108-126 Operation and Maintenance, Navy (emergency)                                              2,106,258            1,976,258             -130,000
 108-126 Operation and Maintenance, Marine Corps (emergency)                                      1,198,981            1,198,981   ...................
 108-126 Operation and Maintenance, Air Force (emergency)                                         5,948,368            5,516,368             -432,000
 108-126 Operation and Maintenance, Defense-Wide (emergency)                                      4,618,452            4,218,452             -400,000
 108-126 Operation and Maintenance, Marine Corps Reserve (emergency)                                 16,000               16,000   ...................
 108-126 Operation and Maintenance, Air Force Reserve (emergency)                                    53,000               53,000   ...................
 108-126 Operation and Maintenance, Air National Guard (emergency)                                  214,000              214,000   ...................
 108-126 Operation and Maintenance, Overseas Humitarian, Disaster, Civic Aid                         35,500               35,500   ...................
          (emergency)
 108-126 Operation and Maintenance, Iraq Freedom Fund (emergency)                                 1,988,600            1,988,600   ...................
                                                                                        ----------------------------------------------------------------
               Total, Operation and Maintenance                                                  40,369,623           40,163,623             -206,000

                                           Procurement

 108-126 Missile Procurement, Army (emergency)                                                        6,200                6,200   ...................
 108-126 Procurement of Weapons and Tracked Combat Vehicles, Army (emergency)                        46,000   ...................             -46,000
      --     (Contingent emergency appropriations)                                       ...................             104,000             +104,000
 108-126 Other Procurement, Army (emergency)                                                        930,687   ...................            -930,687
      --     (Contingent emergency appropriations)                                       ...................           1,078,687           +1,078,687
 108-126 Aircraft Procurement, Navy (emergency)                                                     128,600              128,600   ...................
 108-126 Other Procurement, Navy (emergency)                                                         76,357               76,357   ...................
 108-126 Procurement, Marine Corps (emergency)                                                      123,397              123,397   ...................
 108-126 Aircraft Procurement, Air Force (emergency)                                                 40,972               40,972   ...................
 108-126 Missile Procurement, Air Force (emergency)                                                  20,450               20,450   ...................
 108-126 Other Procurement, Air Force (emergency)                                                 3,441,006            3,441,006   ...................
 108-126 Procurement, Defense-Wide (emergency)                                                      435,635              435,635   ...................
                                                                                        ----------------------------------------------------------------
               Total, Procurement                                                                 5,249,304            5,455,304             +206,000

                           Research, Development, Test and Evaluation

 108-126 Research, Development, Test and Evaluation, Navy (emergency)                                34,000               34,000   ...................
 108-126 Research, Development, Test and Evaluation, Air Force (emergency)                           39,070               39,070   ...................
 108-126 Research, Development, Test and Evaluation, Defense-Wide (emergency)                       265,817              265,817   ...................
                                                                                        ----------------------------------------------------------------
               Total, Research, Development, Test and Evaluation                                    338,887              338,887   ...................

                                 Revolving and Management Funds
 108-126 Defense Working Capital fund (emergency)                                                   600,000              600,000   ...................
 108-126 National Defense Sealift fund (emergency)                                                   24,000               24,000   ...................
                                                                                        ----------------------------------------------------------------
               Total, Revolving and Management Funds                                                624,000              624,000   ...................

                              Other Department of Defense Programs
 108-126 Defense Health Program (emergency)                                                         658,380              658,380   ...................
 108-126 Drug Interdiction and Counter-Drug Activities, Defense (emergency)                          73,000               73,000   ...................
                                                                                        ----------------------------------------------------------------
               Total, Other Department of Defense Programs                                          731,380              731,380   ...................

                                        Related Agencies

 108-126 Intelligence Community Management Account (emergency)                                       21,500               21,500   ...................
                                                                                        ----------------------------------------------------------------
               Total, Chapter 1                                                                  65,147,554           65,147,554   ...................
                   Emergency appropriations                                                     (65,147,554)         (39,018,403)        (-26,129,151)
                   Contingent emergency appropriations                                   ...................         (26,129,151)        (+26,129,151)
                                                                                        ================================================================

                                            CHAPTER 2

                                      MILITARY CONSTRUCTION

 108-126 Military construction, Army (emergency)                                                    119,900              119,900   ...................
 108-126 Military construction, Air Force (emergency)                                               292,550              292,550   ...................
                                                                                        ----------------------------------------------------------------
               Total, Chapter 2                                                                     412,450              412,450   ...................
                                                                                        ================================================================
               Total, TITLE I                                                                    65,560,004           65,560,004   ...................
                   Emergency appropriations                                                     (65,560,004)         (39,430,853)        (-26,129,151)
                   Contingent emergency appropriations                                   ...................         (26,129,151)        (+26,129,151)
                                                                                        ================================================================
                                            TITLE II

                                     INTERNATIONAL SECURITY

                                            CHAPTER 1

                                       DEPARTMENT OF STATE

                                Administration of Foreign Affairs

 108-126 Diplomatic and Consular programs (emergency)                                                40,500               35,800               -4,700
 108-126     Reappropriation                                                                         35,800   ...................             -35,800
      --     Rescission                                                                  ...................             -35,800              -35,800
 108-126 Embassy Security, Construction and Maintenance (emergency)                                  60,500   ...................             -60,500
 108-126 Emergencies in the diplomatic and consular service (emergency)                              50,000   ...................             -50,000
      --     (Contingent emergency appropriations)                                       ...................              90,500              +90,500
                                                                                        ----------------------------------------------------------------
               Total, Administration of Foreign Affairs                                             186,800               90,500              -96,300
                                                                                        ----------------------------------------------------------------
               Total, Chapter 1                                                                     186,800               90,500              -96,300
                   Emergency appropriations                                                        (186,800)             (35,800)           (-151,000)
                   Contingent emergency appropriations                                   ...................             (90,500)            (+90,500)
                   Rescissions                                                           ...................            (-35,800)            (-35,800)
                                                                                        ================================================================
                                            CHAPTER 2

                                  BILATERAL ECONOMIC ASSISTANCE

                               FUNDS APPROPRIATED TO THE PRESIDENT

                       United States Agency for International Development

 108-126 Operating expenses of the United States Agency for International Development                40,000               40,000   ...................
          (emergency)

                                     Capital Investment Fund

      -- Capital Investment Fund (contingent emergency appropriations)                   ...................              60,500              +60,500

                               OTHER BILATERAL ECONOMIC ASSISTANCE

                               FUNDS APPROPRIATED TO THE PRESIDENT

 108-126 Iraq relief and reconstruction fund (emergency)                                         20,304,000           20,304,000   ...................
 108-126 Economic support fund (emergency)                                                          422,000              422,000   ...................
 108-126 United States Emergency Fund for Complex Foreign Crises (emergency)                        100,000              100,000   ...................

                                       DEPARTMENT OF STATE

 108-126 International narcotics control and law enforcement (emergency)                            120,000              120,000   ...................
 108-126 Nonproliferation, antiterrorism, demining and related programs (emergency)                  35,000               35,000   ...................

                                       MILITARY ASSISTANCE

                               FUNDS APPROPRIATED TO THE PRESIDENT

 108-126 Foreign Military Financing Program (emergency)                                             222,000              222,000   ...................
 108-126 Peacekeeping operations (emergency)                                                         50,000               50,000   ...................
                                                                                        ----------------------------------------------------------------
               Total, Chapter 2                                                                  21,293,000           21,353,500              +60,500
                   Emergency appropriations                                                     (21,293,000)         (21,293,000)  ...................
                   Contingent emergency appropriations                                   ...................             (60,500)            (+60,500)
                                                                                        ================================================================
               Total, TITLE II                                                                   21,479,800           21,444,000              -35,800
                   Emergency appropriations                                                     (21,479,800)         (21,328,800)           (-151,000)
                   Contingent emergency appropriations                                   ...................            (151,000)           (+151,000)
                   Rescissions                                                           ...................            (-35,800)            (-35,800)
                                                                                        ================================================================
               GRAND TOTAL (net)                                                                 87,039,804           87,004,004              -35,800
                   Emergency appropriations                                                     (87,039,804)         (60,759,653)        (-26,280,151)
                   Contingent emergency appropriations                                   ...................         (26,280,151)        (+26,280,151)
                   Rescissions                                                           ...................            (-35,800)            (-35,800)
--------------------------------------------------------------------------------------------------------------------------------------------------------



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