[Federal Register Volume 60, Number 120 (Thursday, June 22, 1995)]
[Presidential Documents]
[Pages 32421-32427]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-15383]



      
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  Federal Register / Vol. 60, No. 120 / Thursday, June 22, 1995 / 
Presidental Documents  

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 Title 3--
 The President  
[[Page 32421]] 
                Presidential Determination No. 95-26 of June 8, 1995

                
Certification To Permit U.S. Contributions to the
                International Fund for Ireland for Fiscal Years
                1994 and 1995

                Memorandum for the Secretary of State

                Pursuant to section 5(c) of the Anglo-Irish Agreement 
                Support Act of 1986 (Public Law 99-415), I hereby 
                certify that I am satisfied that: (1) the Board of the 
                International Fund for Ireland as established pursuant 
                to the Anglo-Irish Agreement of November 15, 1985, is, 
                as a whole, broadly representative of the interests of 
                the communities in Ireland and Northern Ireland; and 
                (2) disbursements from the International Fund (a) will 
                be distributed in accordance with the principle of 
                equality of opportunity and nondiscrimination in 
                employment, without regard to religious affiliation, 
                and (b) will address the needs of both communities in 
                Northern Ireland.

                You are authorized and directed to transmit this 
                determination and certification to the Congress, 
                together with the Memorandum of Explanation, and to 
                publish it in the Federal Register.

                    (Presidential Sig.)

                THE WHITE HOUSE,

                    Washington, June 8, 1995.
                      
                MEMORANDUM OF EXPLANATION FOR CERTIFICATION OF THE
                FISCAL YEARS 1994 AND 1995 U.S. CONTRIBUTION TO THE
                INTERNATIONAL FUND FOR IRELAND

                I. INTRODUCTION

                This memorandum has been prepared to comply with 
                legislative requirements associated with the Anglo-
                Irish Agreement Support Act of 1986, Public Law 99-415 
                (the ``Act'').

                Section 5(c) of the Act requires that each fiscal year, 
                prior to contributions to the International Fund for 
                Ireland (``IFI'' or the ``Fund''), the President 
                certify to the Congress that he is satisfied the 
                following conditions have been met:

                    A. The Board of the International Fund for Ireland, 
                as a whole, is broadly representative of the interests 
                of the communities of the Republic of Ireland and 
                Northern Ireland; and
                    B. Disbursements from the IFI:
                      1. will be distributed in accordance with the 
                principle of equality of opportunity and 
                nondiscrimination in employment, without regard to 
                religious affiliation; and
                      2. will address the needs of both communities in 
                Northern Ireland.
                [[Page 32422]] II. BACKGROUND

                    A. Establishment and Operation of the Fund

                The International Fund for Ireland was formally 
                established as an independent entity on December 12, 
                1986, in keeping with the provisions of the Anglo-Irish 
                Agreement of November 15, 1985. The overall objectives 
                of the Fund are to promote economic and social 
                advancement and to encourage contact, dialogue, and 
                reconciliation between nationalists and unionists 
                throughout Ireland and Northern Ireland. The Anglo-
                Irish Agreement states that the Fund shall accomplish 
                these objectives by stimulating private investment and 
                encouraging voluntary efforts with special emphasis on 
                projects promoting communal reconciliation. The 
                Agreement also stipulated the establishment of two 
                investment companies under the Fund.

                The Fund is an independent entity which is administered 
                by a Board of Directors appointed jointly by the 
                British and Irish governments. The Board is guided by a 
                Joint Advisory Committee consisting of senior civil 
                servants drawn equally from Northern Ireland and the 
                Republic of Ireland. The Advisory Committee's principal 
                role is to advise the Board on the economic and social 
                policies and priorities of the two governments and to 
                maximize the impact of assistance by avoiding 
                duplication of activity. The Board is supported by a 
                Secretariat composed of administrators from the two 
                jurisdictions. The Secretariat is headed by two Joint 
                Directors General, one from each jurisdiction. The 
                Fund's operating expenses are paid by the British and 
                Irish governments.

                The Fund's activities are developed primarily through 
                program teams in the following areas: Business 
                Enterprise, Tourism, Urban Development, Agriculture and 
                Rural Development, Science and Technology, the Wider 
                Horizons Program, and the Disadvantaged Areas 
                Initiative. These program teams are composed of an 
                equal number of representatives from Northern Ireland 
                and the Republic of Ireland. The teams are administered 
                by joint chairmen who keep the Board of Directors 
                apprised of their respective program teams' activities.

                In an effort to focus on the more disadvantaged areas, 
                the Fund directs 70-80 percent of the resources 
                available in the program sectors to disadvantaged areas 
                in Northern Ireland. The Fund has also created two 
                additional program schemes: Community Economic 
                Regeneration, which focuses on community driven 
                regeneration of economic activity in urban areas; and 
                Community Regeneration and Improvement Special Program 
                (CRISP), which is designated for disadvantaged areas in 
                Northern Ireland and focuses the Fund's resources on 
                smaller towns and villages by linking a series of 
                projects from the various program areas together.

                    B. Fund Contributions

                The Fund receives contributions directly from bilateral 
                and multilateral donors. U.S. obligations to date total 
                $209.1 million. Under the appropriate Foreign 
                Operations, Export Financing, and Related Programs 
                Appropriations Acts, Congress appropriated an 
                additional $39.2 million for FY 1994 and FY 1995 funds. 
                Since 1989, the European Community has disbursed 15 
                million European Currency Units (approximately US$20 
                million) per year to the Fund, totaling $108 million to 
                date, and will contribute $60 million in FY 1995. New 
                Zealand contributed about $0.6 million in FY 1995 and 
                Canada has provided approximately $7.5 million.

                Each donor is entitled to appoint a representative to 
                attend all Board meetings as a non-voting observer. 
                Observers receive all Board papers and provide guidance 
                to the Fund on behalf of their respective donor 
                countries.

                    C. Program Implementation

                Since its establishment in 1986, the Fund has approved 
                a total of 3,500 projects and budgeted over $399 
                million to its various program areas. Some $358 million 
                has been committed to approved projects within the 
                various programs. The Fund has disbursed approximately 
                $279 million to ongoing and completed projects, 
                including $21.7 million to the two investment 
                companies. [[Page 32423]] 

                Individual project applications continue to represent a 
                majority of the projects for funding. However, the 
                program teams are assisting various communities in 
                identifying and preparing proposals through regular 
                contact and consultation with a number of area Economic 
                Development Consultants. The Consultants serve as a 
                point of contact for local communities, provide 
                technical assistance and advice, and help to speed 
                program implementation.

                The Fund has put into place a computerized system of 
                recording key data for the projects. Information, such 
                as employment generation, leveraging, and geographical 
                distribution of funds, is collected and logged into the 
                new system. The information system has assisted the IFI 
                in developing its capacity to analyze and report on the 
                economic and social indicators of the Fund's 
                achievements.

                Disbursement procedures have also been established for 
                the U.S. contribution to the Fund. In October 1992, 
                USAID established a Letter of Credit mechanism to meet 
                the legislative requirement to disburse funds at the 
                minimum rate necessary to make timely payments for 
                projects and activities. The Letter of Credit has 
                allowed the U.S. Government to exercise greater control 
                over money distributed to the Fund by transferring 
                resources only when needed, and thereby minimizing 
                interest costs to the U.S. Treasury.

                    D. Job Creation and Additional Investment

                Two elements identified as priorities of the U.S. 
                Government in its contribution to the Fund are job 
                creation and the leveraging of additional investment 
                into the economy. Both elements have been adopted by 
                the Fund in the implementation of its program.

                The Fund agrees that job creation is an essential 
                factor in determining the allocation of Fund resources 
                and clearly places an emphasis on the job creation 
                potential of each project considered for funding. The 
                Fund estimates that its activities directly resulted in 
                the creation of about 20,500 new jobs and indirectly 
                resulted in the creation of an additional 8,500 jobs. 
                Construction activities have also resulted in 25,500 
                person-years of temporary employment.

                The Fund has also been successful in leveraging new 
                investment. Of the $397 million of Fund resources 
                committed to approved projects, another $353 million 
                and $264 million of private and government resources, 
                respectively, have been invested. Thus every dollar 
                that the Fund has committed has resulted in an 
                additional $1.70 committed from other sources.

                III. PRESIDENTIAL CERTIFICATION ELEMENTS

                Each fiscal year, prior to the United States making a 
                contribution to the Fund, the President must certify to 
                Congress that he is satisfied that the Fund has 
                complied with the legislative requirements in the Act. 
                This Certification covers both the FY 1994 and FY 1995 
                contributions to the Fund. The following discusses the 
                required elements.

                    A. Board Representation

                The Board of Directors consists of seven members; three 
                nominated by the British government, three nominated by 
                the Irish government, and the Chairman. Board members 
                are approved by both sides through consultations 
                between the two governments. The Board, by design and 
                agreement, is representative of the communities in both 
                Northern Ireland and Ireland. The Board meets once 
                every two months, primarily to review policy and 
                procedural issues and to approve or reject proposals 
                forwarded by the program teams for consideration. In 
                addition, each Board member is responsible for 
                coordinating with specific program teams and is 
                consulted on a regular basis.

                The Board members are as follows:

                Mr. William T. McCarter (Chairman) is a prominent 
                businessman in the textile industry. He is the Managing 
                Director of Fruit of the Loom, International Ltd. with 
                plants in Northern Ireland and the border County 
                Donegal in the Republic of Ireland. Mr. McCarter was 
                born in Londonderry, graduated [[Page 32424]] from 
                Trinity College, Dublin and from the Massachusetts 
                Institute of Technology. He now lives in Bucranna, 
                County Donegal.

                Mr. John E. Craig, OBE is a retired merchant banker 
                with extensive experience in London. He is Chairman of 
                Powerscreen International a very successful exporting 
                firm based in County Tyrone. Mr. Craig was born in 
                Dublin.

                Mr. Paddy Duffy is a prominent lawyer with offices in a 
                number of rural towns in Northern Ireland. He is active 
                in the local credit union movement and Chairman of 
                Dungannon and District Cooperative Society. Mr. Duffy 
                is a former Social Democratic Labor Party councillor 
                and Senator in the Northern Ireland Assembly.

                Mr. Pat Kenny is an accountant by profession and a 
                partner in the firm Deloitte, Touche in Dublin.

                Ms. Joan McCrum until recently was the Chief Executive 
                of the Housing Rights Association, a voluntary housing 
                advice organization. Ms. McCrum now works for the Simon 
                Community, a voluntary charity body, and acts as an 
                independent consultant.
                Ms. Caitriona Murphy is a former senior public official 
                in government service in Dublin and is now a managing 
                director for the Allied Irish Bank in Dublin.

                Mr. Brian A. Slowey was, until his recent retirement, a 
                managing director of Guiness Ireland, and the Chairman 
                of Aer Lingus.

                As in the past, the present Board is noted for its 
                professionalism and integrity in setting policy and 
                approving projects. The Board has taken an active role 
                in promoting the Fund throughout Northern Ireland and 
                Republic of Ireland as well as internationally.

                    B. Disbursements From the International Fund

                The Fund's structure and policy framework ensure that 
                resources are distributed in accordance with the 
                principle of equality of opportunity and 
                nondiscrimination in employment, without regard to 
                religious affiliation, and that these resources address 
                the needs of both communities in Northern Ireland and 
                the six border counties of the Republic of Ireland.

                The Board has developed its policies for disbursement 
                of resources taking into account the terms of the 
                Agreement under which it was established, the wishes of 
                the donor countries, and the need to supplement the 
                economic and social policies of the two governments. 
                The Board structure and policy framework is manifested 
                in the internal checks and balances in the Fund's 
                appraisal, approval, and management systems. Also, the 
                wide geographical distribution of approved projects 
                enhances the Fund's efforts to meet the needs of both 
                communities. The Fund's programs have created jobs, 
                leveraged private investments, and fostered 
                reconciliation. In addition, the Fund has made 
                concerted efforts to target the most disadvantaged 
                areas through CRISP and other special programs as well 
                as the through the work of development consultants.

                      1. Distribution of disbursements in accordance 
                with the principle of equality of opportunity and 
                nondiscrimination in employment, without regard to 
                religious affiliation.
                      a. Structure of the Fund. The Republic of Ireland 
                and Northern Ireland are equally represented by members 
                of the Fund's Board of Directors, Advisory Committee, 
                Secretariat, and Program Teams. These individuals are 
                highly respected for their professional competence, 
                integrity, and commitment to the Fund's objectives. The 
                Advisory Committee, as mentioned above, is composed of 
                senior officials of both the British and Irish 
                governments and provides guidance and support for the 
                Board. The Secretariat staff maintains the day-to-day 
                operations of the Fund and has been carefully selected 
                for their administrative skills and judgement. The 
                Program Teams are staffed with technical and 
                administrative professionals who are committed to the 
                Fund's operating principles of non-discrimination. 
                Review of the IFI portfolio of projects and visits to 
                selected sites by Agency for 
                Inter [[Page 32425]] national Development (USAID) 
                personnel have confirmed that the Fund has assembled a 
                competent and professional staff who have cultivated 
                and exercised sound project approval and management 
                procedures.
                      b. Policy Framework. All Fund publications and 
                solicitations for proposals clearly spell out the 
                Fund's commitment to equality of opportunity and 
                nondiscrimination. All successful applicants are 
                required by the Board to agree to the following prior 
                to receiving an award:
                Acceptance of a grant or loan under this scheme will be 
                deemed to signify the applicant's acceptance of the 
                principle of equality of opportunity and non-
                discrimination in employment, without regard to 
                religious affiliation and that the applicant will be 
                expected to use the money in accordance with this 
                principle.

                Letters of offer clearly state that any violation of 
                this agreement will require immediate repayment of 
                resources. To date, the Fund has not had to request 
                repayment.

                Equality of opportunity requirements are also enforced 
                in Northern Ireland under the Fair Employment (Northern 
                Ireland) Act of 1989. This act makes employment 
                discrimination on the grounds of religious belief or 
                public opinion illegal. The Act is designed to 
                eradicate job discrimination and ensure the active 
                practice of fair employment opportunity throughout 
                Northern Ireland.

                      c. Project Appraisal and Approval. The Fund has 
                instituted a clear and systematic appraisal and 
                approval system. Each Program Team has signed 
                agreements with the Fund Secretariat that spell out the 
                criteria upon which all applications are made. As 
                mentioned above, the Program Teams consist of officials 
                from various government agencies, both North and South, 
                which, in close cooperation with the Secretariat, help 
                to bring the programs to fruition. The Team members, 
                chosen for their expertise in their particular sector, 
                review each project based on its merit using standard 
                economic and financial analysis tools, as well as 
                criteria relevant to their technical field.

                Projects must also be consistent with the economic and 
                social policies and priorities of the British and Irish 
                governments. Each government reserves the right to veto 
                support for activities proposed which violate their 
                stated policies. No resources are to be used, for 
                example, to improve the standing of or to further the 
                goals of any paramilitary organization, either directly 
                or indirectly. The Fund, the British government, and 
                the Irish government are, however, committed to 
                supporting activities which contribute to viable, self-
                sustaining growth, prosperity, and stability. In 
                addition, it is hoped that the projects will have a 
                positive impact on increasing respect for human rights 
                and fundamental freedoms for citizens of both 
                traditions from Northern Ireland and the Republic.

                Thus, within the Fund's policy guidelines and the 
                established criteria for the evaluation and approval 
                process, projects are accepted for funding, rejected, 
                or forwarded to an appropriate government agency for 
                possible support from existing government programs. 
                Applications are processed in a timely and efficient 
                manner, consistent with a proper and prudent review of 
                projects. In addition, of course, a considerable 
                responsibility rests with the individual promoters of 
                projects who must take the lead in completing their 
                share of the financial package and implementing the 
                project to a stage where payment can be made.

                Each decision to approve, disapprove, or forward a 
                project to a government agency requires the 
                recommendation of the relevant program team, the 
                endorsement of the two Board members supervising the 
                team, and the approval of the Fund Secretariat. Any 
                projects which are controversial, raise policy issues, 
                or exceed the program team's delegation of authority, 
                are forwarded to the Board for consideration.

                Equality of opportunity and nondiscrimination are the 
                guiding principles under which the Fund operates. 
                Projects are reviewed on merit alone, without 
                [[Page 32426]] regard to political or religious 
                affiliations of the applicants. The cross-community 
                composition of the Fund Board, the Secretariat, and the 
                program teams ensures the realization of these 
                principles.

                      2. Addressing the needs of both communities in 
                Northern Ireland.

                In order to comply with British law, the principles 
                under which the Fund was established, and the U.S. 
                Government priorities under which our contributions are 
                made, religious affiliation is not a factor in the 
                approval process. It is generally known, however, which 
                religious majority is predominant within a specific 
                geographical area.

                Past program review visits have confirmed that through 
                Fund activities, members of both communities have been 
                able to experience for the first time a working or 
                recreational experience with people of the opposite 
                tradition. Such liaisons have produced cross-community 
                boards of directors (under such organizations as the 
                enterprise centers), cross-community enterprise 
                matchmaking, cross-border joint ventures (such as the 
                Derry-Galway-Boston Trade Fair), and genuine 
                friendships. Other projects, (such as the Shannon-Erne 
                Waterway) have been able to bring people of various 
                communities together to promote their areas and to 
                provide facilities to attract visitors and holiday 
                markets. Because of these improvements, The Waterway 
                Area was awarded a Tourism Award from the British Guild 
                of Travel Writers. The civil servants of both 
                governments in laboring together on the Fund have also 
                developed excellent working, as well as personal, 
                relationships with their counterparts. Such interaction 
                contributes to reconciliation through dialogue and 
                cooperation.

                During a program review visit in November of 1994, 
                USAID officials observed that the Fund is highly 
                regarded by moderates from both the Catholic and 
                Protestant communities for the work they have done and 
                the attitudinal changes they have been able to 
                stimulate. The Springboard-training and reconciliation 
                program helps to promote these changes in younger 
                people. This curriculum teaches courses in order to 
                develop vocational training and mixes students from the 
                West Belfast's Catholic and Protestant communities, 
                allowing them to work together. There has been a 
                concerted effort to reach out to those who were 
                skeptical of the Fund activities, specifically in the 
                Protestant communities, and this effort continue.

                The Fund has made a concerted effort to direct 
                assistance to the more economically disadvantaged 
                areas. Special programs, such as CRISP, have been 
                developed toward this end. The work of the development 
                consultants is important in assisting the disadvantaged 
                communities to develop ideas and proposals to help 
                themselves through the Fund. The consultants 
                participate in establishing local groups, ensure cross-
                community participation whenever possible, and assist 
                groups in creating viable projects. In many cases, 
                however, the IFI merely serves as a catalyst for 
                community initiatives that have been developing 
                independently of the Fund. The consultants are also 
                instrumental in contributing to a greater overall 
                understanding and positive perception of the Fund among 
                the people of both communities.

                IV. CONCLUSION

                A review of Fund activities and a visit to Republic of 
                Ireland and Northern Ireland by a senior USAID officer 
                confirmed that the Board of Directors has maintained 
                policies and procedures designed to ensure that both 
                traditions benefit from Fund activities. The Board's 
                operating principles ensure that project decisions are 
                made on the basis of merit. In addition, it has been 
                concluded that Fund resources are being distributed in 
                a manner consistent with its mandate as stated above. 
                All grantees are made aware of the principles of 
                equality of opportunity and nondiscrimination in 
                employment, stipulated by acceptance of any grant 
                monies.
                [[Page 32427]] This report therefore concludes that:

                     The Board of Directors of the 
                International Fund for Ireland, as a whole, is broadly 
                representative of the interests of the communities in 
                the Republic of Ireland and Northern Ireland.
                     Monies from the Fund are distributed in 
                accordance with the principles of equality of 
                opportunity and nondiscrimination in employment, 
                without regard to religious affiliation, and address 
                the needs of both communities in Northern Ireland.

[FR Doc. 95-15383
Filed 6-19-95; 4:59 pm]
Billing code 4710-10-M