[Senate Report 110-34]
[From the U.S. Government Publishing Office]



                                                        Calendar No. 74
110th Congress                                                   Report
                                 SENATE
 1st Session                                                     110-34

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                 NATO FREEDOM CONSOLIDATION ACT OF 2007

                                _______
                                

                 March 9, 2007.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 494]

    The Committee on Foreign Relations, having under 
consideration a bill to endorse further enlargement of the 
North Atlantic Treaty Organization (NATO) and to facilitate the 
timely admission of new members to NATO, and for other 
purposes, reports favorably thereon and recommends that the 
bill do pass.

                                CONTENTS

                                                                   Page
  I. Purpose..........................................................1
 II. Committee Action.................................................2
III. Cost Estimate....................................................2
 IV. Evaluation of Regulatory Impact..................................3
  V. Changes in Existing Law..........................................3

                               I. Purpose

    The NATO Freedom Consolidation Act of 2007 reaffirms United 
States support for continued enlargement of NATO to democracies 
that are able and willing to meet the responsibilities of 
membership. In particular, the legislation calls for the timely 
admission of Albania, Croatia, Georgia, Macedonia (FYROM), and 
Ukraine to NATO and authorizes security assistance for these 
countries in Fiscal Year 2008. Each of these countries has 
clearly stated its desire to join NATO and is working hard to 
meet the specified requirements for membership.
    Eventual NATO membership for these five countries would be 
a success for Europe, NATO, and the United States by continuing 
to extend the zone of peace and security. Albania, Croatia, and 
Macedonia (FYROM) have been making progress on reforms through 
their participation in the NATO Membership Action Plan since 
2002. Unfortunately, Georgia and Ukraine have not yet been 
granted a Membership Action Plan but nevertheless have made 
remarkable progress. This legislation will provide important 
incentives and assistance to the countries to continue the 
implementation of democratic, defense, and economic reforms.
    Since the end of the Cold War, NATO has been evolving to 
meet the new security needs of the 21st century. In this era, 
the threats to NATO members are transnational and far from its 
geographic borders. There is strong support among members for 
NATO's operation in Afghanistan, and for its training mission 
in Iraq. NATO's viability as an effective defense and security 
alliance depends on flexible, creative leadership, as well as 
the willingness of members to improve capabilities and address 
common threats.
    If NATO is to continue to be the preeminent security 
Alliance and serve the defense interests of its membership, it 
must continue to evolve and that evolution must include 
enlargement. Potential NATO membership motivates emerging 
democracies to make important advances in areas such as the 
rule of law and civil society. A closer relationship with NATO 
will promote these values and contribute to our mutual 
security. Georgia is a young democracy that has made tremendous 
progress since the ``Rose Revolution.'' It is situated in a 
critical geo-strategic location and his host to a large portion 
of the Baku-Tbilisi-Ceyhan pipeline that carries important 
energy resources to the West from Azerbaijan and, in the 
future, Kazakhstan. Georgia is resisting pressure from 
breakaway republics backed by Moscow. In the past, border 
disputes have been identified as reasons a country may not be 
invited to join NATO. But in this case, Russia's actions, not 
Georgia's, are frustrating Tbilisi's NATO aspirations.
    Three years ago, the United States Senate unanimously voted 
to invite seven countries to join NATO. Today, Bulgaria, 
Estonia, Latvia, Lithuania, Romania, Slovakia, and Slovenia are 
making significant contributions to NATO and are among our 
closest allies in the global war on terrorism. It is time again 
for the United States to take the lead in urging its allies to 
bring in new members, and to offer timely admission of Albania, 
Croatia, Georgia, Macedonia (FYROM), and Ukraine to NATO.

                          II. Committee Action

    On February 6, 2007, Senator Lugar introduced S. 494, the 
NATO Freedom Consolidation Act of 2007. At a business meeting 
on March 7, 2007, by a voice vote, the committee ordered the 
bill reported favorably.

                           III. Cost Estimate

    Pursuant to Rule XXVI, paragraph 11(a) of the Standing 
Rules of the Senate, the following cost estimate has been 
provided by the Congressional Budget Office.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE


                             March 9, 2007


                                 S. 494


                 NATO Freedom Consolidation Act of 2007


  AS ORDERED REPORTED BY THE SENATE COMMITTEE ON FOREIGN RELATIONS ON 
                             MARCH 6, 2007

    S. 494 would endorse the expansion of the North Atlantic 
Treaty Organization to include the Republic of Albania, the 
Republic of Croatia, Georgia, the Republic of Macedonia, and 
Ukraine. The bill also would authorize the appropriation in 
2008 of such sums as may be necessary to provide military 
assistance to those countries.
    Based on information from the Department of State in the 
documents that support its appropriation request for 2008, CBO 
estimates that about $30 million would be sufficient to meet 
the authorized purposes. Based on historical spending patterns, 
CBO estimates that outlays would total $12 million in 2008 and 
$30 million over the 2008-2012 period, assuming appropriation 
of the necessary amounts. Enacting the bill would not affect 
direct spending or receipts.
    S. 494 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    On March 5, 2007, CBO transmitted a cost estimate for H.R. 
987, the NATO Freedom Consolidation Act of 2007, as ordered 
reported by the House Committee on Foreign Affairs on February 
15, 2007. The two bills are similar and the estimated costs for 
both bills are the same.
    The CBO staff contact for this estimate is Sam Papenfuss. 
This estimate was approved by Robert A. Sunshine, Assistant 
Director for Budget Analysis.

                  IV. Evaluation of Regulatory Impact

    Pursuant to Rule XXVI, paragraph 11(b) of the Standing 
Rules of the Senate, the committee has determined that there is 
no regulatory impact as a result of this legislation.

                       V. Changes in Existing Law

    In compliance with paragraph 12 of Rule XXVI of the 
Standing Rules of the Senate, the committee has determined that 
there are no changes in existing law made by the bill, as 
reported.

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