[Senate Executive Report 110-27]
[From the U.S. Government Publishing Office]



110th Congress                                              Exec. Rept.
                                 SENATE
 2d Session                                                      110-27

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



 
  PROTOCOLS TO THE NORTH ATLANTIC TREATY OF 1949 ON THE ACCESSION OF 
                          ALBANIA AND CROATIA

                                _______
                                

               September 23, 2008.--Ordered to be printed

                                _______
                                

           Mr. Dodd, from the Committee on Foreign Relations,
                        submitted the following

                                 REPORT

                   [To accompany Treaty Doc. 110-20]

    The Committee on Foreign Relations, to which were referred 
the Protocols to the North Atlantic Treaty of 1949 on the 
Accession of the Republic of Albania and the Republic of 
Croatia, adopted at Brussels on July 9, 2008, and signed that 
day on behalf of the United States of America, having 
considered the same, reports favorably thereon subject to one 
declaration and one condition for each Protocol, as indicated 
in the resolutions of advice and consent for each treaty, and 
recommends the Senate give its advice and consent to 
ratification thereof, as set forth in this report and the 
accompanying resolutions of advice and consent.

                                CONTENTS

                                                                   Page

  I. Purpose..........................................................1
 II. Background.......................................................2
III. Qualifications of Albania and Croatia for NATO Membership........2
 IV. Entry Into Force.................................................4
  V. Committee Action.................................................4
 VI. Committee Recommendation and Comments............................4
VII. Resolutions of Advice and Consent to Ratification................6

                               I. Purpose

    These Protocols are a vehicle for inviting the Republic of 
Albania and the Republic of Croatia to accede to the North 
Atlantic Treaty (the ``Treaty'') in accordance with Article 10 
of the Treaty and thus become a member of the North Atlantic 
Treaty Organization (``NATO''), with all of the privileges and 
responsibilities that apply to current Allies. The core 
commitment made among the Allies is embodied in the text of the 
Treaty, including the collective defense provision in Article 
5.

                             II. Background

    The North Atlantic Treaty entered into force on August 24, 
1949, with twelve states having ratified the Treaty. The 
original parties of the Treaty, and thus the original members 
of NATO, were the United States, Canada, the United Kingdom, 
France, Italy, the Netherlands, Belgium, Portugal, Denmark, 
Norway, Iceland, and Luxembourg. The alliance has expanded five 
times: in 1952, Greece and Turkey became members; in 1955, West 
Germany; in 1982, Spain; in 1999, Poland, Hungary and the Czech 
Republic; and in 2004, Bulgaria, Estonia, Latvia, Lithuania, 
Romania, Slovakia, and Slovenia.
    The process leading to the enlargement of the alliance has 
been refined since the Cold War. NATO remains a military 
alliance, but also became an agent of peace, holding new 
members to higher democratic and economic standards and 
creating a secure space for newly free nations to develop. 
Military reform and achieving interoperability with NATO 
remains essential, but the character of the new allied country 
is also important. The debate over the last two enlargements 
has centered on what standard of political or economic 
development is adequate for accession to the alliance.
    In the 1990s, Secretary of Defense William Perry 
established benchmarks used to assess new members. These are 
democratic elections, individual liberty, and the rule of law; 
commitment to economic reform and a market economy; adherence 
to the norms of the Organization for Security and Cooperation 
in Europe (OSCE) in the treatment of ethnic minorities and 
social justice; resolution of territorial disputes with 
neighbors; and the establishment of democratic control of the 
military. Albania and Croatia have attempted to address these 
issues in the course of their NATO membership applications and 
the committee has examined them using the so-called ``Perry 
Principles.''
    Engagement with NATO to assist a country's democratic and 
economic development is not the end of reform. The experience 
of previous NATO enlargements suggests that countries continue 
the reform process after admission.

              III. Qualifications of Albania and Croatia 
                          for NATO Membership


The Republic of Albania

    The Albanian population overwhelmingly supports NATO 
membership and their government has made it a centerpiece of 
its foreign policy. Albania's progress in meeting NATO 
standards is remarkable given its isolated and underdeveloped 
situation following the death of dictator Enver Hoxha in 1985.
    Albania is a parliamentary democracy under a ten-year-old 
constitution. Albania's greatest challenge in meeting 
membership standards involved its political reform process. In 
July 2005, the Democratic Party's victory in parliamentary 
elections led to a peaceful transfer of power. The presidential 
election in July 2007 built on the success of two years 
earlier. The Albanian government has made strides fighting 
organized crime and human trafficking. There have also been 
efforts to reform the judiciary and fight corruption. 
Corruption is a fairly serious problem; Transparency 
International's annual index rated Albania the 105th most 
transparent country out of 180 in 2007. Freedom House also 
noted that ``Although corruption pervades all areas of life, 
the government appears to be making some efforts to address the 
problem.''
    Albania suffered from massive outflows of labor migration, 
but an improving economy has curtailed emigration. In 2007, 
Albania's GDP grew by 6 percent and inflation remains low. The 
telephone company has been privatized and an insurance company 
and the energy sector are in the process of privatization. 
Economic stability has led to development of Albania's nascent 
oil extraction industry. Infrastructure is poor and requires 
investment. The Albanians have increased trade significantly 
and are beginning to attract foreign direct investment.
    Protection of minority rights has increased, particularly 
for the Greek minority, who have no restrictions on their 
language and culture, but problems remain for the country's 
Roma and Egyptian minorities. An Albanian civil society does 
exist free of government control, but such freedom requires 
time to fully develop.
    Albania has forsaken any irredentist claims on neighboring 
countries with ethnic Albanian regions. They have used their 
ethnic ties to Kosovo to promote moderation there. The Albanian 
military is accountable to the democratically elected 
government. Albania used international assistance to 
restructure its armed forces as a smaller and professional 
force. Albania has joined ongoing NATO operations 
enthusiastically. According to Assistant Secretary of State 
Daniel Fried in his testimony before this committee on March 
11, 2008, ``Albania is the single greatest per-capita 
contributor to NATO and Coalition operations in Afghanistan and 
Iraq and elsewhere.'' The country has hosted a logistics 
support center to facilitate NATO peacekeeping in Kosovo. 
Albania's capital now hosts a regional military command--NATO 
HQ Tirana. The Albanian government has committed to spending 2 
percent of its GDP on defense, consistent with NATO 
recommendations. NATO and the member states have helped Albania 
cope with its stockpiles of dangerous ordnance and landmines 
which remain a serious problem.

The Republic of Croatia

    Croatia is a stable parliamentary democracy possessing 
strong institutions. There have been successive successful 
democratic elections. Corruption remains an issue of concern as 
Transparency International's annual index rated Croatia the 
64th most transparent country out of 180 in 2007, low by 
European standards, but much better than their eastern 
neighbors.
    Croatia's candidacy for membership in the European Union 
testifies to the strength of its economic and social reforms. 
The European Union is its closest trading partner and the 
Croatian economy is closely linked to that of the EU.
    Croatia has good relations with its neighbors. The Croatian 
government has played a positive role in Kosovo and has 
promoted stability in Bosnia. Croatia's election as a non-
permanent member of the UN Security Council has enhanced its 
prestige.
    The Croatian military is accountable to the democratically 
elected government. Croatia has been an avid participant in 
NATO since 2000 when it joined the Partnership for Peace. 
Croatia is an active participant in NATO exercises and 
operations; it is the lead nation in the NATO Trust Fund for 
Bosnia and Herzegovina. Croatia has about 300 troops in 
Afghanistan and trains Afghan military and police units. 
Croatia has completed most of the restructuring required to 
bring its forces up to NATO standards. It has developed a 
``long-term development plan'' in consultation with NATO. The 
Croatian government has committed to spending 2 percent of its 
GDP on defense, consistent with NATO recommendations. Concerns 
about public support for NATO membership have dissipated.
    Croatia still has not addressed the problem of property 
restitution. The country's current legal framework 
discriminates against current non-Croatian citizens whose 
property was seized during the Second World War and during the 
communist era. Beyond this, judicial reform in general is an 
area in need of further reform. Croatia also has to cope with 
the legacy of war, including providing adequate housing for 
returning refugees. Significant numbers of ethnic Serbs have 
returned to Croatia and while problems remain, this is a major 
achievement.

                          IV. Entry Into Force

    Each Protocol will enter into force when all of the current 
Parties to the North Atlantic Treaty have notified the 
Government of the United States of America, which is the 
depositary for the North Atlantic Treaty, of their acceptance 
of each Protocol. Once each Protocol has entered into force, 
the Secretary General of NATO shall extend an invitation to the 
named state to accede to the North Atlantic Treaty and in 
accordance with Article 10 of the Treaty, that state shall 
become a Party to the Treaty on the date it deposits its 
instrument of accession with the Government of the United 
States of America.

                          V. Committee Action

    The committee held a public hearing on NATO enlargement on 
March 11, 2008, and testimony was received from Mr. Daniel 
Fried, Assistant Secretary for European Affairs at the 
Department of State; General John Craddock, U.S. European 
Command and Supreme Allied Commander; Dr. Ronald D. Asmus, 
Executive Director Transatlantic Center; Dr. Philip H. Gordon, 
Senior Fellow for U.S. Foreign Policy; and Mr. Bruce Jackson, 
President of the Project on Transitional Democracies. A 
transcript of this hearing is forthcoming in S. Hrg. 110-506.
    The committee held a public hearing specifically on these 
protocols on September 10, 2008. Testimony was received from 
Assistant Secretary Fried and Mr. Daniel P. Fata, Deputy 
Assistant Secretary for European and NATO Policy at the 
Department of Defense. A transcript of this hearing is 
forthcoming in S. Hrg. 110-507.
    On September 23, 2008, the committee considered these 
treaties and ordered them favorably reported by voice vote, 
with a quorum present and without objection.

               VI. Committee Recommendation and Comments

    The Committee on Foreign Relations believes that these two 
countries have the potential to make significant contributions 
as members of the alliance. They have already demonstrated this 
potential through their valuable participation in recent years 
in NATO combat and peacekeeping operations as part of their 
Membership Action Plans. The admission of Albania and Croatia 
to the alliance will have a stabilizing effect on Southeastern 
Europe. Their membership will encourage the spread of peace and 
democracy in the region and their willingness to contribute to 
ongoing NATO operations will augment NATO's resources.
    Both countries have demonstrated their willingness and 
ability to contribute to regional security by participation in 
peacekeeping operations. As NATO's obligations expand, it is 
important to leave the door open to countries willing to 
shoulder the responsibilities of membership.
    Albania and Croatia are located in a region of Europe 
scarred by recent conflicts. One of NATO's greatest 
accomplishments has been building security and democracy in the 
Balkans; Albania's and Croatia's membership will represent a 
consolidation of that process.
    It will take some time for both countries to consolidate 
the political and economic gains they have made during the past 
decade. Both countries still need to make greater efforts 
against corruption and to increase official accountability. 
Albania's political and economic development has not progressed 
as far as Croatia's. The committee believes, however, that 
Albania's commitment to NATO membership is strong and that its 
addition to the alliance is warranted.
    NATO stands ready to welcome the nations of South-Eastern 
Europe into the Euro-Atlantic community. In the Bucharest 
Summit Declaration, Bosnia and Herzegovina and Montenegro were 
invited to begin an Intensified Dialogue on ``the full range of 
political, military, financial, and security issues relating to 
their aspirations to membership.'' Having Albania and Croatia 
within the alliance will enhance that dialogue. Accordingly, 
the committee urges the Senate to act promptly to give advice 
and consent to ratification of these two Protocols of 
Accession, as set forth in this report and the accompanying 
resolution of advice and consent.

Resolutions

    The committee has included in proposed resolutions for each 
Protocol one declaration and one condition, which are discussed 
below.

Declaration

    The committee has included the same declaration in the 
proposed resolution for each Protocol, which makes clear that 
it is important for NATO to keep its door open to all European 
democracies willing and able to assume the responsibilities and 
obligations of membership. As noted above, it is important to 
welcome new democracies into NATO, particularly as NATO expands 
its commitments.

Condition

    The committee has included the same condition in the 
proposed resolution for each Protocol, which requires the 
President to certify, prior to the deposit of the instrument of 
ratification for each Protocol, that (1) the inclusion of 
Albania and Croatia in NATO will not have the effect of 
increasing the overall percentage share of the United States in 
the common budget of NATO; and (2) the inclusion of Albania and 
Croatia in NATO will not detract from the ability of the United 
States to meet or to fund its military requirements outside the 
North Atlantic area.
    The administration has indicated in reports to Congress 
that the addition of these two new allies would lower NATO's 
common budget assessment for the United States, even taking 
into account the costs of enlargement. Based on both countries' 
Gross National Income (GNI), Albania will pay 0.0685 percent 
and Croatia will pay 0.25550 percent of the common budget 
annually. This will reduce the United States share of the 
annual budget assessment by .08 percent. The estimated cost of 
enlargement is $120 million for Albania and Croatia, or $60 
million apiece. This money will be found within the budget by 
reprogramming money from other projects within the NATO budget. 
Much of the $120 million will be expended over a ten year 
period for construction of infrastructure improvements at 
facilities that will be used by NATO personnel. The remaining 
money will be spent establishing secure communications between 
the two new Members and the alliance.
    The Government Accountability Office (GAO) reviewed the 
President's report to Congress on Albania and Croatia of June 
20, 2008 in a report dated September 22, 2008. The report found 
that ``the June 2008 classified and unclassified reports 
provide little information concerning Albania's and Croatia's 
ability to meet the full range of financial burdens of NATO 
membership and do not identify the methodology used to support 
the conclusions that Albania and Croatia should be able to meet 
their financial obligations.'' Given that their financial 
contribution to NATO would be reasonably modest, it seems 
unlikely to create a problem for either country. Nevertheless, 
the committee agrees with the GAO's conclusion and expects the 
Executive to obtain further information, as appropriate, before 
certifying that the inclusion of Albania and Croatia in NATO 
will not have the effect of increasing the overall percentage 
share of the United States in the common budget of NATO.
    The administration's Report to Congress on the Future 
Enlargement of NATO, dated May 30, 2008, notes that the United 
States is confident that the accession of Albania and Croatia 
will have a positive impact on the Alliance. It does not 
address whether the addition of these countries to NATO will 
``detract from the ability of the United States to meet or to 
fund its military requirements outside the North Atlantic 
area.'' The committee expects the President to address this 
question in his certification.

         VII. Resolutions of Advice and Consent to Ratification


 PROTOCOL TO THE NORTH ATLANTIC TREATY OF 1949 ON THE ACCESSION OF THE 
                          REPUBLIC OF ALBANIA

    Resolved (two-thirds of the Senators present concurring 
therein),

SECTION 1. SENATE ADVICE AND CONSENT SUBJECT TO A DECLARATION AND A 
                    CONDITION.

    The Senate advises and consents to the ratification of the 
Protocol to the North Atlantic Treaty of 1949 on the Accession 
of the Republic of Albania, adopted at Brussels on July 9, 
2008, and signed that day on behalf of the United States of 
America (the ``Protocol'') (Treaty Doc. 110-20), subject to the 
declaration of section 2 and the condition of section 3.

SECTION 2. DECLARATION

    The advice and consent of the Senate under section 1 is 
subject to the following declaration:

          (a) Article 10 of the North Atlantic Treaty provides 
        that Parties may, by unanimous agreement, invite any 
        other European State in a position to further the 
        principles of the North Atlantic Treaty and to 
        contribute to the security of the North Atlantic area 
        to accede to the North Atlantic Treaty, and thus become 
        a member of the North Atlantic Treaty Organization 
        (``NATO'').

          (b) The Bucharest Summit Declaration, issued by the 
        Heads of States and Governments participating in the 
        meeting of the North Atlantic Council in Bucharest on 
        April 3, 2008, states that NATO welcomes Ukraine's and 
        Georgia's Euro-Atlantic aspirations for membership in 
        NATO. The Bucharest Summit Declaration additionally 
        states that it was ``agreed today that these countries 
        will become members of NATO.''

          (c) The Senate declares that it is important that 
        NATO keep its door open to all European democracies 
        willing and able to assume the responsibilities and 
        obligations of membership.

SECTION 3. CONDITION

    The advice and consent of the Senate under section 1 is 
subject to the following condition:

Presidential Certification

    Prior to the deposit of the instrument of ratification, the 
President shall certify to the Senate as follows:

          1. The inclusion of the Republic of Albania in NATO 
        will not have the effect of increasing the overall 
        percentage share of the United States in the common 
        budgets of NATO; and

          2. The inclusion of the Republic of Albania in NATO 
        does not detract from the ability of the United States 
        to meet or to fund its military requirements outside 
        the North Atlantic area.

 PROTOCOL TO THE NORTH ATLANTIC TREATY OF 1949 ON THE ACCESSION OF THE 
                          REPUBLIC OF CROATIA

    Resolved (two-thirds of the Senators present concurring 
therein),

SECTION 1. SENATE ADVICE AND CONSENT SUBJECT TO A DECLARATION AND A 
                    CONDITION.

    The Senate advises and consents to the ratification of the 
Protocol to the North Atlantic Treaty of 1949 on the Accession 
of the Republic of Croatia, adopted at Brussels on July 9, 
2008, and signed that day on behalf of the United States of 
America (the ``Protocol'') (Treaty Doc. 110-20), subject to the 
declaration of section 2 and the condition of section 3.

SECTION 2. DECLARATION

    The advice and consent of the Senate under section 1 is 
subject to the following declaration:

          (a) Article 10 of the North Atlantic Treaty provides 
        that Parties may, by unanimous agreement, invite any 
        other European State in a position to further the 
        principles of the North Atlantic Treaty and to 
        contribute to the security of the North Atlantic area 
        to accede to the North Atlantic Treaty, and thus become 
        a member of the North Atlantic Treaty Organization 
        (``NATO'').

          (b) The Bucharest Summit Declaration, issued by the 
        Heads of States and Governments participating in the 
        meeting of the North Atlantic Council in Bucharest on 
        April 3, 2008, states that NATO welcomes Ukraine's and 
        Georgia's Euro-Atlantic aspirations for membership in 
        NATO. The Bucharest Summit Declaration additionally 
        states that it was ``agreed today that these countries 
        will become members of NATO.''

          (c) The Senate declares that it is important that 
        NATO keep its door open to all European democracies 
        willing and able to assume the responsibilities and 
        obligations of membership.

SECTION 3. CONDITION

    The advice and consent of the Senate under section 1 is 
subject to the following condition:

Presidential Certification

    Prior to the deposit of the instrument of ratification, the 
President shall certify to the Senate as follows:

          1. The inclusion of the Republic of Croatia in NATO 
        will not have the effect of increasing the overall 
        percentage share of the United States in the common 
        budgets of NATO; and

          2. The inclusion of the Republic of Croatia in NATO 
        does not detract from the ability of the United States 
        to meet or to fund its military requirements outside 
        the North Atlantic area.

                                    

      
