[Federal Register Volume 69, Number 142 (Monday, July 26, 2004)]
[Notices]
[Pages 44549-44551]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-16982]


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MILLENNIUM CHALLENGE CORPORATION

[FR 04-08]


Report on Countries That Are Candidates for Millennium Challenge 
Account Eligibility in FY 2005 and Countries That Would Be Candidates 
but for Legal Prohibitions

AGENCY: Millennium Challenge Corporation.

SUMMARY: Section 608(d) of the Millennium Challenge Act of 2003 
requires the Millennium Challenge Corporation to publish a report that 
identifies countries that are ``candidate countries'' for Millennium 
Challenge Account assistance during FY 2005. The report is set forth in 
full below.
    Report: This report to Congress is provided in accordance with 
section

[[Page 44550]]

608(a) of the Millennium Challenge Act of 2003, codified at 22 U.S.C. 
7701 and 7707(a) (the ``Act''). The Act authorizes the provision of 
Millennium Challenge Account (``MCA'') assistance to countries that 
enter into compacts with the United States to support policies and 
programs that advance the prospects of such countries achieving lasting 
economic growth and poverty reduction. The Act requires the Millennium 
Challenge Corporation to take a number of steps in determining the 
countries that, based on their demonstrated commitment to just and 
democratic governance, economic freedom and investing in their people, 
will be eligible for MCA assistance during Fiscal Year 2005. These 
steps include the submission of reports to the congressional committees 
specified in the Act and the publication of notices in the Federal 
Register that identify:
    1. The countries that are ``candidate countries'' for MCA 
assistance during Fiscal Year 2005 based on their per-capita income 
levels and their eligibility to receive assistance under U.S. law and 
countries that would be candidate countries but for legal prohibitions 
on assistance (section 608(a) of the Act);
    2. The criteria and methodology that the Board of Directors of the 
Millennium Challenge Corporation (the ``Board'') will use to measure 
and evaluate the relative policy performance of the candidate countries 
consistent with the requirements of section 607 of the Act in order to 
select ``eligible countries'' from among the ``candidate countries'' 
(section 608(b) of the Act); and
    3. The list of countries determined by the Board to be ``eligible 
countries'' for Fiscal Year 2005, including which of the eligible 
countries the Board will seek to enter into MCA compacts (section 
608(d) of the Act).
    This notice is the first of the three required notices listed 
above.

Candidate Countries for FY 2005

    The Act requires the identification of all countries that are 
candidates for MCA assistance in FY 2005 and the identification of all 
countries that would be candidate countries but for legal prohibitions 
on assistance. Section 606(a) of the Act provides that, during FY 2005, 
countries shall be candidates for the MCA if they:
     Have a per capita income equal to or less than the 
historical ceiling of the International Development Association for the 
fiscal year involved (or $1465 for FY 2005); and
     Are not subject to legal provisions that prohibit them 
from receiving United States economic assistance under part I of the 
Foreign Assistance Act of 1961, as amended.
    Pursuant to section 606(c) of the Act, the Board of Directors of 
the Millennium Challenge Corporation has identified the following 
countries as candidate countries under the Act for FY 2005. In so 
doing, the Board has anticipated that prohibitions against assistance 
that applied to countries during FY 2004 will again apply during FY 
2005, even though the Foreign Operations, Export Financing and Related 
Appropriations Act for FY 2005 has not yet been enacted and certain 
findings under other statutes have not yet been made. As noted below, 
the Millennium Challenge Corporation will provide any required updates 
on subsequent changes in applicable legislation or other circumstances 
that would affect the status of countries as candidate countries for FY 
2005.

1. Afghanistan
2. Angola
3. Armenia
4. Azerbaijan
5. Bangladesh
6. Benin
7. Bhutan
8. Bolivia
9. Burkina Faso
10. Cameroon
11. Chad
12. China
13. Comoros
14. Congo, Dem. Rep
15. Congo, Rep. (Brazzaville)
16. Djibouti
17. Egypt, Arab Rep. of
18. Equatorial Guinea
19. Eritrea, and
20. Ethiopia
21. Gambia
22. Georgia
23. Ghana
24. Guinea
25. Guyana
26. Haiti
27. Honduras
28. India
29. Ondonesia
30. Iraq \1\
31. Kenya
32. Kiribati
33. Kyrgyz Republic
34. Lao PDR
35. Lesotho
36. Madagascar
37. Malawi
38. Mali
39. Mauritania
40. Moldova
41. Mongolia
42. Morocco
43. Mozambique
44. Nepal
45. Nicaragua
46. Niger
47. Nigeria
48. Pakistan
49. Papua New Guinea
50. Paraguay
51. Philippines
52. Rwanda
53. Sao Tome and Principe
54. Senegal
55. Sierra Leone
56. Solomon Islands
57. Sri Lanka
58. Swaziland
59. Tajikistan
60. Tanzania
61. Timor-Leste
62. Togo
63. Turkmenistan
64. Tuvalu
65. Uganda
66.
67. Vanuatu
68. Vietnam
69. Yemen, Rep.
70. Zambia

    \1\ Iraq is identified as a candidate country on a provisional 
basis. Iraq is subject to section 620(t) of the Foreign Assistance 
Act of 1961, as amended, which prohibits assistance to countries 
with which the United States severed diplomatic relations, unless 
diplomatic relations have been resumed and an agreement for the 
furnishing of assistance has subsequently been entered into. While 
the United States has resumed diplomatic relations with Iraq, an 
assistance agreement, which would satisfy section 620(t), has not 
yet been completed. If such an agreement has not been entered into 
by the date on which the MCC Board determines eligible countries 
pursuant to section 607 of the Act, Iraq will not be treated as a 
candidate country as of that date.
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    Albania, Bosnia and Herzegovina, Cape Verde, and Tonga were 
candidate countries for FY 2004 but are not candidate countries for FY 
2005, due to increases in their levels of per capita income above the 
historical ceiling of the International Development Association. In 
addition, Serbia & Montenegro, which would have been a candidate 
country for FY 2004 but for legal prohibitions that apply to Serbia, is 
not a candidate country for FY 2005 due to an increase in its per 
capita income above the International Development Association 
historical ceiling.

Countries That Would Be Candidate Countries but for Statutory 
Provisions That Prohibit Assistance

    Countries that would be considered candidate countries during FY 
2005 but are subject to legal provisions which prohibit them from 
receiving U.S. economic assistance under part I of the Foreign 
Assistance Act of 1961, as amended (the ``Foreign Assistance Act'') are 
listed below. As noted above, this list is based on legal prohibitions 
against economic assistance that apply during FY 2004 that are 
anticipated to apply again during FY 2005.
    1. Burma. Section 570 of the FY 1997 Foreign Operations Act 
prohibits assistance to the government with certain narrow exceptions. 
In addition, Burma has been identified as a major

[[Page 44551]]

drug-transit or major illicit drug producing country for 2004 
(Presidential Determination No. 2003-38, dated 9/15/03) and designated 
as having ``failed demonstrably'' to adhere to its international 
obligations and take the measures required by section 489(a)(1) of the 
Foreign Assistance Act, thus making Burma ineligible for assistance. 
Burma is listed as a Tier III country under the Trafficking Victims 
Protection Act for not complying with minimum standards for eliminating 
trafficking and not making significant efforts to comply (Presidential 
Determination No. 2003-35, 9/9/03).
    2. Burundi is subject to section 508 of the Foreign Operations, 
Export Financing, and Related Programs Appropriations Act, 2004 (``FY 
2004 Appropriations Act''), which prohibits assistance to the 
government of a country whose duly elected head of government has been 
deposed by a military coup.
    3. Cambodia is subject to section 561(b) of the FY 2004 
Appropriations Act, which prohibits assistance to the central 
government of Cambodia, except in specified circumstances.
    4. Central African Republic is subject to section 508 of the FY 
2004 Appropriations Act.
    5. Cote d'Ivoire is subject section 508 of the FY 2004 
Appropriations Act.
    6. Cuba. Section 507 of the FY 2004 Appropriations Act prohibits 
direct assistance to Cuba. The Cuban Liberty and Democratic Solidarity 
Act of 1996, Pub. L. 104-114 requires the President to take all 
necessary steps to ensure that no funds or other assistance is provided 
to the Cuban government.
    7. Guinea-Bissau is subject to section 508 of the FY 2004 
Appropriations Act.
    8. Liberia is subject to section 620(q) of the Foreign Assistance 
Act and section 512 of the FY 2004 Appropriations Act, both of which 
prohibit assistance under part I of the Foreign Assistance Act based on 
past due indebtedness to the United States.
    9. Somalia is subject to section 620(q) of the Foreign Assistance 
Act and section 512 of the FY 2004 Appropriations Act.
    10. Sudan is subject to: section 620(q) of the Foreign Assistance 
Act and section 512 of the FY 2004 Appropriations Act. Sudan also is 
subject to section 508 of the FY 2004 Appropriations Act and section 
620A of the Foreign Assistance Act.
    11. Syrian Arab Republic. Section 507 of the FY 2004 Appropriations 
Act prohibits direct assistance to Syria.
    12. Uzbekistan is subject to section 568 of the FY 2004 
Appropriations Act, which requires that funds appropriated for 
assistance to the central Government of Uzbekistan may be made 
available only if the Secretary of State determines and reports to the 
Congress that the government is making substantial and continuing 
progress in meeting its commitments under a framework agreement with 
the United States.
    13. Zimbabwe is subject to section 620(q) of the Foreign Assistance 
Act and section 512 of the FY 2004 Appropriations Act.
    Countries identified above as candidate countries, as well as 
countries that would be considered candidate countries but for the 
applicability of legal provisions that prohibit U.S. economic 
assistance, may be the subject of future statutory restrictions or 
determinations, or changed country circumstances, that affect their 
legal eligibility for assistance under part I of the Foreign Assistance 
Act during FY 2005. The Millennium Challenge Corporation will include 
any required updates on such statutory eligibility that affect 
countries' identification as candidate countries for FY 2005, at such 
time as it publishes the notices required by sections 608(b) and 608(d) 
of the Act or at other appropriate times. Any such updates with regard 
to the legal eligibility or ineligibility of particular countries 
identified in this report will not affect the date on which the Board 
of Directors is authorized to determine eligible countries from among 
candidate countries which, in accordance with section 608(a) of the 
Act, shall be no sooner than 90 days from the date of publication of 
this notice.

    Dated: July 21, 2004.
Paul V. Applegarth,
Chief Executive Officer, Millennium Challenge Corporation.
[FR Doc. 04-16982 Filed 7-23-04; 8:45 am]
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