[Senate Hearing 114-612]
[From the U.S. Government Publishing Office]


                                                       S. Hrg. 114-612

                          NOMINATION HEARINGS
                         OF THE 114TH CONGRESS

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

                                 HEARINGS

                               BEFORE THE

                     COMMITTEE ON FOREIGN RELATIONS
                          UNITED STATES SENATE



                    ONE HUNDRED FOURTEENTH CONGRESS

                               __________

            FIRST SESSION--MARCH 10 THROUGH DECEMBER 2, 2015



         SECOND SESSION--FEBRUARY 11 THROUGH SEPTEMBER 20, 2016

                               __________


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                COMMITTEE ON FOREIGN RELATIONS          
               One Hundred Fourteenth Congress          

                BOB CORKER, TENNESSEE, Chairman        
JAMES E. RISCH, Idaho                BENJAMIN L. CARDIN, Maryland
MARCO RUBIO, Florida                 BARBARA BOXER, California
RON JOHNSON, Wisconsin               ROBERT MENENDEZ, New Jersey
JEFF FLAKE, Arizona                  JEANNE SHAHEEN, New Hampshire
CORY GARDNER, Colorado               CHRISTOPHER A. COONS, Delaware
DAVID PERDUE, Georgia                TOM UDALL, New Mexico
JOHNNY ISAKSON, Georgia              CHRISTOPHER MURPHY, Connecticut
RAND PAUL, Kentucky                  TIM KAINE, Virginia
JOHN BARRASSO, Wyoming               EDWARD J. MARKEY, Massachusetts


                  Todd Womack, Staff Director        
             Chris Lynch, Democratic Staff Director        
              Rob Strayer, Majority Chief Counsel        
            Margaret Taylor, Minority Chief Counsel        
                    John Dutton, Chief Clerk        


                             (ii)         
                             
                        C O N T E N T S

                              ----------                              

    [Any additional material relating to these nominees may be found
              at the end of the applicable day's hearing.]

                              ----------                              

                     114th Congress--First Session

Tuesday, March 10, 2015 .........................................     1

    Stafford Fitzgerald Haney, of New Jersey, nominated to be 
      Ambassador to Costa Rica...................................     2

    Matthew T. McGuire, of the District of Columbia, nominated to 
      be U.S. Executive Director of the International Bank for 
      Reconstruction and Development.............................     6
        Responses to Additional Questions for the Record.........    21

    Gentry O. Smith, of North Carolina, nominated to be Director 
      of the Office of Foreign Missions..........................     8

    Charles C. Adams, Jr., of Maryland, nominated to be 
      Ambassador to the Republic of Finland......................    10
        Responses to Additional Questions for the Record.........    23

Wednesday, March 25, 2015........................................    25

    Paul A. Folmsbee, of Oklahoma, nominated to be Ambassador to 
      the Republic of Mali.......................................    27
        Responses to Additional Questions for the Record.........    47

    Mary Catherine Phee, of Illinois, nominated to be Ambassador 
      to the Republic of South Sudan.............................    30
        Responses to Additional Questions for the Record.........    52

    Cassandra Q. Butts, of the District of Columbia, nominated to 
      be Ambassador to the Commonwealth of the Bahamas...........    33
        Responses to Additional Questions for the Record.........    57

    Katherine Simonds Dhanani, of Florida, nominated to be 
      Ambassador to the Federal Republic of Somalia..............    36
        Responses to Additional Questions for the Record.........    60

Tuesday, May 19, 2015 ...........................................    69

    Miley Guilarte, of the District of Columbia, nominated to be 
      U.S. Alternate Executive Director of the Inter-American 
      Development Bank...........................................    71
        Responses to Additional Questions for the Record.........   106

    Jennifer Ann Haverkamp, of Indiana, nominated to be Assistant 
      Secretary of State for Oceans and International 
      Environmental and Scientific Affairs.......................    74
        Responses to Additional Questions for the Record.........   109

    Marcia Denise Occomy, of the District of Columbia, nominated 
      to be U.S. Director of the African Development Bank for a 
      term of five years.........................................    79
        Responses to Additional Questions for the Record.........   113



                                  iii

Tuesday, May 19, 2015--continued

    Sunil Sabharwal, of California, nominated to be U.S. 
      Alternate Executive Director of the International Monetary 
      Fund for a term of two years...............................    82
    Brian James Egan, of Maryland, nominated to be Legal Adviser 
      of the Department of State.................................    84
        Responses to Additional Questions for the Record.........   117


Wednesday, May 20, 2015 .........................................   125

    Gregory T. Delawie, of Virginia, nominated to be Ambassador 
      to the Republic of Kosov...................................   126

    Ian C. Kelly, of Illinois, nominated to be Ambassador to 
      Georgia....................................................   131

    Nancy Bikoff Pettit, nominated to be Ambassador to the 
      Republic of Latvia.........................................   133

    Azita Raji, of California, nominated to be Ambassador to the 
      Kingdom of Sweden..........................................   136

    Julieta Valls Noyes, of Virginia, nominated to be Ambassador 
      to the Republic of Croatia.................................   139


Wednesday, June 17, 2015.........................................   157

    Gayle Smith, of Ohio, nominated to be Administrator of the 
      U.S. Agency for International Development..................   158
        Responses to Additional Questions for the Record.........   185

Tuesday, June 23, 2015...........................................   231

    Glyn Townsend Davies, of the District of Columbia, nominated 
      to be Ambassador to the Kingdom of Thailand................   234
        Responses to Additional Questions for the Record.........   274

    William A. Heidt, of Pennsylvania, nominated to be Ambassador 
      to the Kingdom of Cambodia.................................   237
        Responses to Additional Questions for the Record.........   275

    Jennifer Zimdahl Galt, of Colorado, nominated to be 
      Ambassador to Mongolia.....................................   241

    David Hale, of New Jersey, nominated to be Ambassador to the 
      Islamic Republic of Pakistan...............................   255
        Responses to Additional Questions for the Record.........   276

    Alaina B. Teplitz of Illinois, nominated to be Ambassador to 
      the Federal Democratic Republic of Nepal...................   258

    Sheila Gwaltney, of California, nominated to be Ambassador to 
      the Kyrgyz Republic........................................   261
        Responses to Additional Questions for the Record.........   280

    Atul Keshap, of Virginia, nominated to be Ambassador to the 
      Democratic Socialist Republic of Sri Lanka and to the 
      Republic of Maldives.......................................   263
        Responses to Additional Questions for the Record.........   282

Thursday, July 9, 2015 ..........................................   287

    Hon. Michele Thoren Bond, of the District of Columbia, 
      nominated to be an Assistant Secretary of State (Consular 
      Affairs)...................................................   290

    Dr. Sarah Mendelson, of the District of Columbia, nominated 
      to be Representative of the U.S. on the Economic and Social 
      Council of the U.N. and Alternate Representative of the 
      U.S. to the General Assembly of the U.N....................   299
        Responses to Additional Questions for the Record.........   307

Wednesday, July 15, 2015 ........................................   311

    Hon. Roberta S. Jacobson, of Maryland, nominated to be 
      Ambassador to the United Mexican States....................   313
        Responses to Additional Questions for the Record.........   339

    Laura Farnsworth Dogu, of Texas, nominated to be Ambassador 
      to the Republic of Nicaragua...............................   315
        Responses to Additional Questions for the Record.........   360
Wednesday, July 15, 2015--continued

    Perry L. Holloway, of South Carolina, nominated to be 
      Ambassador to the Cooperative Republic of Guyana...........   317
        Responses to Additional Questions for the Record.........   362

    Peter F. Mulrean, of Massachusetts, nominated to be 
      Ambassador to the Republic of Haiti........................   320
        Responses to Additional Questions for the Record.........   363


Wednesday, July 22, 2015 ........................................   367

    Hon. Paul Wayne Jones, of Maryland, nominated to be 
      Ambassador to the Republic of Poland.......................   371

    Hon. Hans G. Klemm, of Michigan, nominated to be Ambassador 
      to Romania.................................................   373

    Samuel D. Heins, of Minnesota, nominated to be Ambassador to 
      the Kingdom of Norway......................................   376

    James Desmond Melville, Jr., of New Jersey, nominated to be 
      Ambassador to the Republic of Estonia......................   379
        Responses to Additional Questions for the Record.........   403

    Kathleen Ann Doherty, of New York, nominated to be Ambassador 
      to the Republic of Cyprus..................................   382
        Responses to Additional Questions for the Record.........   404

    Thomas O. Melia, of Maryland, nominated to be an Assistant 
      Administrator of the U.S. Agency for International 
      Development................................................   385
        Responses to Additional Questions for the Record.........   404

Thursday, July 30, 2015 .........................................   415

    Lucy Tamlyn, of New York, nominated to be Ambassador to the 
      Republic of Benin..........................................   417
        Responses to Additional Questions for the Record.........   439

    David R. Gilmour, of Texas, nominated to be Ambassador to the 
      Togolese Republic..........................................   419
        Responses to Additional Questions for the Record.........   439

    Jeffrey J. Hawkins, Jr., of California, nominated to be 
      Ambassador to the Central African Republic.................   422
        Responses to Additional Questions for the Record.........   440

    Daniel H. Rubinstein, of Virginia, nominated to be Ambassador 
      to the Republic of Tunisia.................................   425
        Responses to Additional Questions for the Record.........   443

    Carolyn Patricia Alsup, of Florida, nominated to be 
      Ambassador to the Republic of the Gambia...................   428


Tuesday, August 4, 2015 .........................................   445

    Ann Calvaresi Barr, of Maryland, nominated to be Inspector 
      General, U.S. Agency for International Development.........   448

    David Malcolm Robinson, of Connecticut, nominated to be an 
      Assistant Secretary of State (Conflict and Stabilization 
      Operations) and Coordinator for Reconstruction and 
      Stabilization..............................................   451

    Edwin Richard Nolan, Jr., of Massachusetts, nominated to be 
      Ambassador to the Republic of Suriname.....................   454
        Responses to Additional Questions for the Record.........   472

    John L. Estrada, of Florida, nominated to be Ambassador to 
      the Republic of Trinidad and Tobago........................   457
        Responses to Additional Questions for the Record.........   473

    Scott Allen, of Maryland, nominated to be U.S. Director of 
      the European Bank for Reconstruction and Development.......   460

Tuesday, September 22, 2015......................................   475

    Susan Coppedge, of Georgia, nominated to be Director of the 
      Office to Monitor and Combat Trafficking...................   479
        Responses to Additional Questions for the Record.........   492
Thursday, October 1, 2015 .......................................   497

    Hon. Robert Porter Jackson, of Virginia, nominated to be 
      Ambassador to the Republic of Ghana........................   499
        Responses to Additional Questions for the Record.........   523

    Hon. Harry K. Thomas, Jr., of New York, nominated to be 
      Ambassador to the Republic of Zimbabwe.....................   502
        Responses to Additional Questions for the Record.........   524
    Julie Furuta-Toy of Wyoming, nominated to be Ambassador to 
      the Republic of Equatorial Guinea..........................   505
        Responses to Additional Questions for the Record.........   525

    Dennis B. Hankins, of Minnesota, nominated to be Ambassador 
      to the Republic of Guinea..................................   508
        Responses to Additional Questions for the Record.........   526

    Linda I. Etim, of Wisconsin, nominated to be an Assistant 
      Administrator of the U.S. Agency for International 
      Development................................................   510
        Responses to Additional Questions for the Record.........   527

Wednesday, October 28, 2015 .....................................   557

    John Morton, of Massachusetts, nominated to be Executive Vice 
      President of the Overseas Private Investment Corporation...   558
        Responses to Additional Questions for the Record.........   582

    Kenneth Damian Ward, of Virginia, nominated to be U.S. 
      Representative to the Organization for the Prohibition of 
      Chemical Weapons...........................................   560
        Responses to Additional Questions for the Record.........   583

    Hon. Peter William Bodde, of Maryland, nominated to be 
      Ambassador to Libya........................................   563
        Responses to Additional Questions for the Record.........   583

    Marc Jonathan Sievers, of Maryland, nominated to be 
      Ambassador to the Sultanate of Oman........................   566
        Responses to Additional Questions for the Record.........   585

    Elisabeth I. Millard, of Virginia, nominated to be Ambassador 
      to the Republic of Tajikistan..............................   569
        Responses to Additional Questions for the Record.........   585

Thursday, October 29, 2015 ......................................   587

    Hon. Thomas A. Shannon, Jr., of Virginia, nominated to be an 
      Under Secretary of State (Political Affairs)...............   589
        Responses to Additional Questions for the Record.........   629

    Laura S.H. Holgate, of Virginia, nominated to be the 
      Representative of the U.S. to the International Atomic 
      Energy Agency, and nominated to be Representative of the 
      U.S. of America to the Vienna Office of the United Nations.   609
        Responses to Additional Questions for the Record.........   644

Tuesday, November 3, 2015........................................   657

    The Hon. Deborah R. Malack of Virginia, nominated to be 
      Ambassador to the Republic of Uganda.......................   659
        Responses to Additional Questions for the Record.........   677

    Lisa J. Peterson, of Virginia, nominated to be Ambassador to 
      the Kingdom of Swaziland...................................   662
        Responses to Additional Questions for the Record.........   680

    H. Dean Pittman, of the District of Columbia, nominated to be 
      Ambassador to the Republic of Mozambique...................   665
        Responses to Additional Questions for the Record.........   681
Tuesday, December 1, 2015 .......................................   685

    Amos J. Hochstein, of the District of Columbia, nominated to 
      be an Assistant Secretary of State (Energy Resources)......   687
        Responses to Additional Questions for the Record.........   726

    Catherine Ebert-Gray, of Virginia,to be Ambassador to the 
      Independent State of Papua New Guinea, the Solomon Islands, 
      and the Republic of Vanuatu................................   691
        Responses to Additional Questions for the Record.........   736

    Hon. Scot Alan Marciel, of California, nominated to be 
      Ambassador to the Union of Burma...........................   693
        Responses to Additional Questions for the Record.........   737

    Linda Swartz Taglialatela, of New York, nominated to be 
      Ambassador to Barbados, the Federation of St. Kitts and 
      Nevis, Saint Lucia, Antigua and Barbuda, the Commonwealth 
      of Dominica, Grenada, and Saint Vincent and the Grenadines.   706
        Responses to Additional Questions for the Record.........   745

    John D. Feeley, of the District of Columbia, nominated to be 
      Ambassador to the Republic of Panama.......................   709
        Responses to Additional Questions for the Record.........   749

    Jean Elizabeth Manes, of Florida, nominated to be Ambassador 
      to the Republic of El Salvador.............................   712
        Responses to Additional Questions for the Record.........   752

    Todd C. Chapman, of Texas, nominated to be Ambassador to the 
      Republic of Ecuador........................................   715
        Responses to Additional Questions for the Record.........   756

Wednesday, December 2, 2015 .....................................   763

    David McKean, of Massachusetts, nominated to be Ambassador to 
      Luxembourg.................................................   765

    G. Kathleen Hill, of Colorado, nominated to be Ambassador to 
      the Republic of Malta......................................   768

    Eric Seth Rubin, of New York, nominated to be Ambassador to 
      the Republic of Bulgaria...................................   771
        Responses to Additional Questions for the Record.........   797

    Kyle R. Scott, of Arizona, nominated to be Ambassador to the 
      Republic of Serbia.........................................   774
        Responses to Additional Questions for the Record.........   798

    Carlos J. Torres, of Virginia, nominated to be Deputy 
      Director of the Peace Corps................................   778

                     114th Congress--Second Session

Thursday February 11, 2016.......................................   801

    Hon. Karen Brevard Stewart, of Florida, nominated to be 
      Ambassador to the Republic of the Marshall Islands.........   804

    Robert Annan Riley III, of Florida, nominated to be 
      Ambassador to the Federated States of Micronesia...........   808

    Swati A. Dandekar, of Iowa, nominated to be U.S. Executive 
      Director of the Asian Development Bank.....................   812
        Responses to Additional Questions for the Record.........   829

    Matthew John Matthews, of Oregon, nominated to be United 
      States Senior Official for the Asia-Pacific Economic 
      Cooperation, APEC, Forum...................................   814
        Responses to Additional Questions for the Record.........   831

    Marcela Escobari, of Massachusetts, nominated to be an 
      Assistant Administrator of the United States Agency for 
      International Development..................................   817
        Responses to Additional Questions for the Record.........   832
Thursday, March 10, 2016.........................................   839

    Christine Ann Elder, of Kentucky, nominated to be Ambassador 
      to the Republic of Liberia.................................   841
        Responses to Additional Questions for the Record.........   866

    R. David Harden, of Maryland, nominated to be an Assistant 
      Administrator of the United States Agency for International 
      Development................................................   844
        Responses to Additional Questions for the Record.........   871

    Elizabeth Holzhall Richard, of Virginia, nominated to be 
      Ambassador to the Lebanese Republic........................   847
        Responses to Additional Questions for the Record.........   881

    Stephen Michael Schwartz, of Maryland, nominated to be 
      Ambassador to the Federal Republic of Somalia..............   850
        Responses to Additional Questions for the Record.........   888

    Kelly Keiderling-Franz, of Virginia, nominated to be 
      Ambassador to the Oriental Republic of Uruguay.............   859
        Responses to Additional Questions for the Record.........   899

    Mark Sobel, of Virginia, nominated to be United States 
      Executive Director of the International Monetary Fund for a 
      Term of Two Years..........................................   861
        Responses to Additional Questions for the Record.........   905

    Adam H. Sterling, nominated to be Ambassador to the Slovac 
      Republic...................................................   861
        Responses to Additional Questions for the Record.........   913


Wednesday, June 8, 2016..........................................   921

    Hon. Geeta Pasi, of New York, nominated to be Ambassador to 
      the Republic of Chad.......................................   923
        Responses to Additional Questions for the Record.........   935

    Hon. Mary Beth Leonard, of Massachusetts, nominated to be 
      U.S. Representative to the African Union...................   925
        Responses to Additional Questions for the Record.........   939

    Anne S. Casper, of Nevada, nominated to be Ambassador to the 
      Republic of Burundi........................................   928
        Responses to Additional Questions for the Record.........   941


Tuesday, June 21, 2016...........................................   945

    Anne Hall, of Maine, nominated to be Ambassador to the 
      Republic of Lithuania......................................   946
        Responses to Additional Questions for the Record.........   986

    Hon. Marie L. Yovanovitch, of Connecticut, nominated to be 
      Ambassador to Ukraine......................................   950
        Responses to Additional Questions for the Record.........   992

    Hon. Geoffrey R. Pyatt, of California, nominated to be 
      Ambassador to the Hellenic Republic of Greece..............   953
        Responses to Additional Questions for the Record.........   995

    Hon. Douglas Allan Silliman, of Texas, nominated to be 
      Ambassador to the Republic of Iraq.........................   965
        Responses to Additional Questions for the Record.........  1004

    Hon. Peter Michael McKinley, Virgina, nominated to be 
      Ambassador to the Federative Republic of Brazil............   969
        Responses to Additional Questions for the Record.........  1009

    Lawrence Robert Silverman, of Massachusetts nominated to be 
      Ambassador to the State of Kuait...........................   971
        Responses to Additional Questions for the Record.........  1019

    Carol Z. Perez, of Virginia, nominated to be Ambassador to 
      the Republic of Chile......................................   974
        Responses to Additional Questions for the Record.........  1022
Wednesday, July 13, 2016.........................................  1029

    Hon. Sung Y. Kim, of California, nominated to be Ambassador 
      to the Republic of the Philippines.........................  1030
        Responses to Additional Questions for the Record.........  1047

    Rena Bitter, of Texas, nominated to be Ambassador to the Lao 
      People's Democratic Republic...............................  1033
        Responses to Additional Questions for the Record.........  1050

    Amala Shirin Lakhdhir, of Connecticut, nominated to be 
      Ambassador to Malaysia.....................................  1036
        Responses to Additional Questions for the Record.........  1052


Tuesday, September 20, 2016......................................  1059

    Hon. W. Stuart Symington, of Missouri, nominated to be 
      Ambassador to the Federal Republic of Nigeria..............  1061
        Responses to Additional Questions for the Record.........  1079

    Andrew Robert Young, of California, nominated to be 
      Ambassador to Burkina Faso.................................  1064
        Responses to Additional Questions for the Record.........  1086

    Joseph R. Donovan, Jr., of Virginia, nominated to be 
      Ambassador to the Republic of Indonesia....................  1068
        Responses to Additional Questions for the Record.........  1089


Index of nominees................................................  1095

.                          
                              NOMINATIONS

                              ----------                              


                        TUESDAY, MARCH 10, 2015

                                       U.S. Senate,
                            Committee on Foreign Relations,
                                                    Washington, DC.
                              ----------                              

Stafford Fitzgerald Haney, of New Jersey, to be Ambassador to 
        Costa Rica
Matthew T. McGuire, of the District of Columbia, to be U.S. 
        Executive Director of the International Bank for 
        Reconstruction and Development for a term of two years
Gentry O. Smith, of North Carolina, to be Director of the 
        Office of Foreign Missions, and to have the rank of 
        Ambassador
Charles C. Adams, Jr., of Maryland, to be Ambassador to the 
        Republic of Finland
                              ----------                              

    The committee met, pursuant to notice, at 2:31 p.m., in 
room SD-419, Dirksen Senate Office Building, Hon. David Perdue, 
presiding.
    Present: Senators Perdue, Gardner, and Kaine.

            OPENING STATEMENT OF HON. DAVID PERDUE, 
                   U.S. SENATOR FROM GEORGIA

    Senator Perdue. This hearing of the Senate Foreign 
Relations Subcommittee on State Department Management will come 
to order.
    Thank you all for being here today to hear from the 
nominees to very important positions that will allow these 
Americans to proudly represent the United States abroad. We 
have nominees for Ambassador to two countries, Costa Rica and 
Finland, both of which we share strong diplomatic ties. Our 
nominee for U.S. Executive Director for the International Bank 
for Reconstruction and Development and Director of Office of 
Foreign Missions, which remains very important as we seek to 
secure our diplomatic facilities abroad and the Americans 
working there.
    I understand most of you have already been through this 
process and are coming back for a second go-round. It is Cory's 
and my first. So you will be patient with us today. Will you 
not? [Laughter.]
    However, I was not here last Congress. So I appreciate your 
forbearance today, and we will move right through this as 
expeditiously as we can.
    With that, I would like to recognize Senator--I am sorry. 
We will move right through this since he is not here.
    Our first nominee--I am just going to highlight this just 
briefly and apologize for this, but I want to go through this.
    Our first nominee, Mr. Stafford Fitzgerald Haney, who is 
nominated to be Ambassador to Costa Rica. Mr. Haney currently 
serves as Director of Business Development and Client Services 
at Pzena Investment Management, has served in positions with 
Pepsico and Citibank in some major Latin American countries 
such as Brazil, Mexico, and Puerto Rico. He graduated from 
Georgetown University School of Foreign Service with a masters 
and bachelors degree.
    Our second nominee today is Mr. Matthew T. McGuire, who is 
nominated to be U.S. Executive Director of the International 
Bank for Reconstruction and Development for a term of 2 years. 
Mr. McGuire has held multiple positions in the Department of 
the Treasury and Commerce and prior to that, he had a very 
successful career in the finance industry. Mr. McGuire is a 
graduate of Brown University and has degrees from the 
University of London and Harvard.
    Our third nominee is Mr. Gentry O. Smith, who is nominated 
to be Director of the Office of Foreign Missions with the rank 
of Ambassador. Mr. Smith is a career Foreign Service officer 
who started with the State Department in 1987. He has served in 
many posts overseas, including Cairo, Tokyo, and Burma, as well 
as the Secretary of State's protective detail. He also served 
as Deputy Assistant Secretary and Assistant Director for 
Countermeasures. Mr. Smith is a graduate of North Carolina 
State University.
    Our fourth nominee is Mr. Charles C. Adams, Jr., who is 
nominated to be the U.S. Ambassador to the Republic of Finland. 
Mr. Adams is currently senior counsel at Akin Gump Strauss 
Hauer & Feld, LLP. He has led a successful career, spending 
much of his time living in Geneva, Switzerland, as a managing 
partner for various law firms. He is a graduate of Dartmouth 
College and the University of Virginia School of law.
    Thank you all for being here today and sharing your 
thoughts and viewpoints with us today.
    We would remind you all that your full statements will be 
included in the record, as it was the last time you were here, 
without objection. So if you could please keep your remarks to 
no more than 5 minutes or so, we appreciate that so members of 
the committee can engage with you on these matters. And we will 
move as expeditiously as we can.
    With that, we will take statements, starting with Mr. Haney 
first, please.

       STATEMENT OF STAFFORD FITZGERALD HANEY, NOMINATED 
                 TO BE AMBASSADOR TO COSTA RICA

    Mr. Haney. Chairman Perdue, Senator Gardner, thank you. It 
is an honor to appear before you today as President Obama's 
nominee to serve as the next U.S. Ambassador to Costa Rica.
    I am profoundly humbled by this opportunity to serve and 
thank the President and the Secretary of State for the 
confidence they have placed in me. If confirmed, I look forward 
to working with you and your colleagues in Congress to protect 
U.S. citizens in Costa Rica, deepen the bonds that unite our 
countries, and advance U.S. interests in Central America.
    With the chairman's permission, I would like to acknowledge 
friends and family without whose support I would not be here 
today, starting with my wife, Rabbi Andrea Haney, and my 
children, Asher, Nava, Eden, and Shaia, who are at home 
watching hopefully. If I am confirmed, my wife and our four 
children will be joining me in San Jose, and it is only through 
their love and support that I am here today.
    I would also like to mention my mother, father, and 
brother--may they rest in peace--who are here today with us in 
our hearts. My mother, Sandra Haney, was and still is my hero. 
She is also a link in a long line of family that has in various 
ways served our country proudly. From a fifth great-granduncle 
who fought in the Revolutionary War to my brother who served 
both overseas and at home to my great uncle who recently 
received an honorary doctorate in public service and was 
recognized by the Tennessee State legislature to my mother's 
marches and sit-ins to protest what she saw as injustices not 
compatible with the America we aspire to be, we have a long and 
proud tradition of serving our Nation. It is in my mother's 
honor and in her memory that I hope, if I am confirmed, to 
dedicate my service.
    Costa Rica is an important ally in a region of critical 
strategic importance to the United States. It is the most 
stable democracy in Central America and its long-held 
traditions of protecting human rights and freedom of expression 
are a model for the region. Its strong commitment to investing 
in education and health has helped Costa Rica achieve literacy, 
life expectancy, infant morality, and income levels that are 
significantly better than elsewhere in Central America. It is 
no surprise that these positive attributes have attracted 
significant numbers of Americans to the country. Today, 
approximately 100,000 U.S. citizens call Costa Rica home and 
more than 1 million visit annually. If confirmed, their safety 
and well-being will be my top priority.
    Despite its successes, Costa Rica, like its neighbors, 
confronts many challenges, including security challenges, as 
international drug trafficking organizations and organized 
crime increasingly penetrate Central America. The United States 
and Costa Rica enjoy an excellent partnership in security 
cooperation. If confirmed, I will continue to work with the 
Government of Costa Rica to ensure that organized crime does 
not undermine the country's economy and democratic 
institutions.
    Another of my highest priorities will be promoting greater 
Central American integration. As outlined in the Strategy for 
U.S. Engagement in Central America, the region will not prosper 
without better regional cooperation on trade, infrastructure 
development, strengthened democratic institutions, energy 
integration, and investment.
    Given its ability and relative prosperity, Costa Rica can 
and should play a critical role in advancing our strategy in 
Central America. It can and should lead in working to create 
conditions in Central America that are conducive to reducing 
poverty and violence and creating jobs and opportunity, and it 
should serve as an example of what is possible in the region. 
President Solis has committed to working to promote regional 
integration and prosperity, and if confirmed, I will support 
him in those efforts.
    I have many years experience living and working in 
international business in Mexico, Central America, the 
Caribbean, and Brazil. I understand the region and the 
challenges it faces. As President Solis made clear during his 
first year in office, Costa Rica is serious about improving its 
business climate and attracting additional foreign investment. 
If confirmed, my private sector experience will be an asset to 
helping Costa Rica achieve those goals. It would also serve me 
in working to advocate for stronger intellectual property 
protection, promote entrepreneurship, and public-private 
partnerships, and ensure that U.S. companies and investors 
encounter a fair and level playing field for doing business in 
Costa Rica.
    If confirmed, I will work closely with Costa Rica to 
advance the many other policy objectives and priorities the 
United States and Costa Rica share. Costa Rica shares our 
commitment to protecting democratic freedoms and human rights 
and is vigilantly resisting any attempts to weaken the inter-
American human rights system. This support for basic human 
rights, democracy, and freedom has never been more important in 
the region than today. Costa Rica is an international leader 
with important initiatives to mitigate and adapt to climate 
change and promote renewable energy use and sustainable 
development. I believe Costa Rica can become a regional hub of 
innovation and has the potential to assume a leadership role in 
advancing good governance and prosperity throughout Central 
America.
    As our dedicated team at Embassy San Jose states, a safe, 
prosperous, and green Costa Rica not only benefits the citizens 
of both of our nations, but also the entirety of Central 
America.
    Mr. Chairman, committee members, I thank you again for your 
consideration of my nomination to serve as Ambassador to Costa 
Rica, and I welcome your questions.
    [The prepared statement of Mr. Haney follows:]

            Prepared Statement of Stafford Fitzgerald Haney

    Mr. Chairman, members of the committee, it is an honor to appear 
before you today as President Obama's nominee to serve as the next 
United States Ambassador to Costa Rica.
    I am profoundly humbled by this opportunity to serve and thank the 
President and the Secretary of State for the confidence they have 
placed in me. If confirmed, I look forward to working with you and your 
colleagues in Congress to protect U.S. citizens in Costa Rica, deepen 
the bonds that unite our countries, and advance U.S. interests in 
Central America.
    With the chairman's permission, I would like to acknowledge friends 
and family without whose support I would not be here today--starting 
with my wife, Rabbi Andrea Haney, and my children Asher, Nava, Eden, 
and Shaia. If I am confirmed, my wife and our four children will be 
joining me in San Jose and it is only through their love and support 
that I am here today. I would also like to acknowledge my mother-in-
law, Betsy Dobrick, my brothers and sisters-in-law Adam and Allison 
Dobrick and Jeremy Dobrick and Tamara Hoover, and various close 
friends, whose support means so much to me and my family.
    Finally, I would also like to mention my mother, father, and 
brother, may they rest in peace, who are here today with us in our 
hearts. My mother, Sandra Haney, was, and still is, my hero. As a young 
widow with two young children, she left home and family to provide my 
brother and me with the best education and opportunities she could. 
Working during the day and going to school at night, she showed us, by 
her example, that the United States is truly the land of opportunity 
for those who work hard on a level playing field. She did not have it 
easy as a single African-American woman raising two children alone in 
the 1970s, but she never gave up and she knew her sacrifices would 
allow her children to have a better life. It was her firmly held 
belief; one which she passed on, that America's core values should 
serve as an example throughout the world. She also was a link in a long 
line of family that has in various ways served our Nation proudly. From 
a 5th great-granduncle who fought in the Revolutionary War to my 
brother who served both overseas and at home to my greatuncle who 
recently received an honorary doctorate in public service and was 
recognized by the Tennessee State legislature to my mother's marches 
and sit-ins to protest what she saw as injustices not compatible with 
the America we aspire to be--we have a long and proud tradition of 
serving our Nation. It is in my mother's honor and in her memory that I 
hope, if I am confirmed, to dedicate my service.
    Costa Rica is an important ally in a region of critical strategic 
importance to the United States. It is the most stable democracy in 
Central America, and its long-held traditions of protecting human 
rights and freedom of expression are a model for the region. Its strong 
commitment to investing in education and health has helped Costa Rica 
achieve high literacy, life expectancy, and income levels and a low 
infant mortality rate. It is no surprise that these positive attributes 
have attracted significant numbers of Americans to the country. Today, 
approximately 100,000 U.S. citizens call Costa Rica home and more than 
1 million visit annually. If confirmed, their safety and well-being 
will be my top priority.
    Despite its successes, Costa Rica confronts many challenges, 
including security challenges, as international drug trafficking 
organizations and organized crime increasingly penetrate Central 
America. The United States and Costa Rica enjoy an excellent 
partnership in security cooperation. If confirmed, I will continue to 
work with the Government of Costa Rica to ensure that organized crime 
does not undermine the country's economy and democratic institutions.
    If confirmed, another of my highest priorities will be promoting 
greater Central American integration. As outlined in the Strategy for 
U.S. Engagement in Central America, the region will not prosper without 
better regional cooperation on trade, infrastructure development, 
strengthened democratic institutions, energy integration, and 
investment. Greater integration has long been an aspiration in Central 
America, but effective mechanisms for achieving that goal have remained 
elusive. The United States can play a constructive role in helping 
Central America create jobs and economic opportunities for its 43 
million people, by helping the region improve infrastructure, integrate 
markets, reduce nontariff barriers, and benefit more from its free 
trade agreement.
    Given its stability and relative prosperity, Costa Rica can help 
play a critical role in advancing our strategy in Central America. It 
can help lead in working to create conditions in Central America that 
are conducive to further reducing poverty and violence and creating 
jobs and opportunity and it can serve as an example of what is possible 
in the region. President Solis has stated a commitment to working to 
promote regional integration and prosperity, and, if confirmed, I will 
support him in those efforts. I will also work to create stronger 
linkages between the American Chambers of Commerce in Central America, 
so that the private sector is fully incorporated into the process of 
seeking solutions to the region's development challenges.
    I have many years' experience living and working in international 
business in Mexico, Central America, the Caribbean, and Brazil. I 
understand the region and the challenges it faces. As President Solis 
made clear during his first year in office; Costa Rica is serious about 
improving its business climate, and attracting foreign investment. If 
confirmed, my private sector experience will be an asset in helping 
Costa Rica advance in those areas. It will also serve me in working to 
advocate for stronger intellectual property protection, promote 
entrepreneurship and public-private partnerships, and ensure that U.S. 
companies and investors encounter a fair and level playing field for 
doing business in Costa Rica.
    If confirmed, I will work closely with Costa Rica to advance the 
many other policy objectives and priorities the United States and Costa 
Rica share. Costa Rica shares our commitment to protecting democratic 
freedoms and human rights, and is vigilantly resisting any attempts to 
weaken the Inter-American Human Rights System. This support for basic 
human rights, democracy and freedom has never been more important in 
the region than today. Costa Rica is an international leader with 
important initiatives to mitigate and adapt to climate change and 
promote renewable energy use and sustainable development. I believe 
Costa Rica can become a regional hub of innovation and has the 
potential to assume a leadership role in advancing good governance and 
prosperity throughout Central America.
    As our dedicated team at Embassy San Jose states: a safe, 
prosperous, and green Costa Rica not only benefits the citizens of both 
of our nations, but also the entirety of Central America.

    Senator Perdue. Thank you, Mr. Haney.
    Mr. McGuire.

 STATEMENT OF MATTHEW T. McGUIRE, PH.D., NOMINATED TO BE U.S. 
EXECUTIVE DIRECTOR OF THE INTERNATIONAL BANK FOR RECONSTRUCTION 
                        AND DEVELOPMENT

    Dr. McGuire. Thank you, Chairman Perdue, and thank you for 
convening us today and chairing this session. Thank you also to 
Senator Kaine for presiding today. And, Senator Gardner, thank 
you for coming. It seems appropriate that I congratulate 
Senator Perdue and Senator Gardner for your recent victories 
and for joining the Senate. It is quite an honor, and it is 
always good to have fresh thinking and fresh blood up here.
    I would also like to just thank my mother, who is here 
today, Georgiana McGuire. I was noting earlier with a few 
people that the last time I did this, I had aunts and uncles 
and in-laws and all sorts of people. You do it a second time, 
you get Mom. [Laughter.]
    I am thrilled to have her, but it is a lesson to everybody 
here.
    It is an honor and a privilege, of course, to be here as 
President Obama's nominee as Executive Director for the 
International Bank for Reconstruction and Development, 
otherwise known as the World Bank.
    Rather than read the full statement I sent over for the 
formal record, I would like to briefly discuss my career to 
date and then frame how I would approach the role of Executive 
Director, if I were to be confirmed.
    So with that, I would just say that during the first part 
of my career, I taught and was focused on issues related to 
economic and development policy both in the United States and 
abroad. I got a Ph.D. in anthropology from Harvard, finishing 
in 1988, and my dissertation was on the redevelopment of public 
housing in Chicago. During that time, I also spent several 
months in Ethiopia and Eritrea researching the relationship 
between those countries shortly after the end of their 30-year-
long war. And when I finished my Ph.D., I ran a welfare-to-work 
job training program in New York before joining a firm that 
helped U.S. cities redevelop public housing projects into 
mixed-income communities.
    In 2003, I moved into the financial services industry, and 
I spent the next 8 years working for several mutual fund and 
hedge fund companies raising capital and serving as a senior 
executive in three entrepreneurial and dynamic firms. During 
that time, I began to more fully understand the role that 
financial markets play in our economy and how interconnected 
the global economy is as a result of the ease with which 
capital moves across national borders, industry sectors, and 
asset classes. In an era where CEO's and investors can deploy 
each dollar or euro or real almost anywhere in the world at 
almost at a moment's notice, it is increasingly important that 
countries like ours play close attention to their financial 
positions and that they strive to maintain and strengthen the 
integrity of their capital markets.
    That view has been strengthened by my experience and my 
time over the last 4 years at the Department of Commerce and at 
the Department of the Treasury where I have worked closely with 
U.S. businesses on a range of issues, including many related to 
international trade.
    Should this committee and the full Senate confirm me, I 
will strive to be a sound steward of our country's capital at 
the bank at all times. I will work to ensure that each dollar 
we commit is used to support the values that have proven so 
durable since America's founding, that open societies are the 
strongest societies, that transparent systems are the most 
successful systems, and that those countries which endeavor to 
give all of their citizens a fair shot at becoming educated, 
being healthy, and achieving economic independence are the 
countries that will succeed no matter where they happen to be 
located. Those are just a few of the values I have watched 
President Obama champion for many years now, and I would be 
honored to carry them forward on his behalf, on the country's 
behalf as the Executive Director of the bank.
    [The prepared statement of Mr. McGuire follows:]

                Prepared Statement of Matthew T. McGuire

    Thank you, Chairman Perdue and Senator Kaine, for presiding over 
today's hearing. I would also like to thank Chairman Corker, Ranking 
Member Menendez, and the distinguished members of the committee. It is 
an honor and a privilege to be here, as President Obama's nominee for 
Executive Director of the International Bank for Reconstruction and 
Development. I have enjoyed meeting some of you and your staff during 
the confirmation process, and I look forward to answering any questions 
you might have.
    My mother was part of the first Peace Corps group ever to go 
overseas, ``Ghana I,'' back in 1961. She was the first person in her 
family to go to college, having worked her way through, and when she 
graduated she heard President Kennedy's call to reach out beyond 
America's shores and to make a difference however small or however 
large it might be. She taught English in a small town in Ghana called 
Tema, and many years later a student of hers from the Tema Secondary 
School became one of my professors at Brown University. As you might 
imagine, I grew up hearing many stories about those sorts of 
connections, and I grew up hearing about the importance of America's 
role in the world, especially through its uniquely American 
institutions, such as the Peace Corps. My father, who died when I was 6 
years old, also served in the Peace Corps, in what was then East 
Pakistan and is now Bangladesh. He spent most of his career working on 
international affairs as well, and his influence on me has been 
considerable even in his absence.
    I also grew up working at my family's business here in Washington, 
DC, The McGuire Funeral Service. My great-grandfather, Robert Grayson 
McGuire, founded the funeral home in 1912, and when I was old enough I 
began spending my summers and my weekends there, washing cars, 
arranging flowers, shoveling snow off the driveway, and even acting as 
a pallbearer when a family was in need of another set of hands. And I 
will always remember that my mother and my uncle paid me minimum wage 
and no more, punching a time clock like everyone else, for every hour 
and every minute that I worked there.
    Through the course of watching my grandfather, my mother, my aunt 
and my uncle, run the funeral home, I learned numerous things. I 
learned about how important it is to have a bank that provides credit 
in bad times as well as good; about how having economic independence 
makes it easier to engage with political issues of the day, like the 
civil rights movement, which my family was deeply involved in; and 
about the pride and responsibility that comes from being able to hire 
more people as your company grows. These are simple, yet powerful 
things that I carry with me to this day.
    The first part of my career was squarely focused on issues of 
economic equality, and how public policies can increase the 
possibilities of ordinary citizens to raise their incomes and have a 
shot at realizing their dreams. I got a Ph.D. in Anthropology from 
Harvard, finishing in 1998, and my dissertation was on the 
redevelopment of public housing in Chicago. During that time I also 
spent several months in Ethiopia and Eritrea, researching the 
relationship between those countries shortly after the end of their 30 
year-long war. And when I finished my Ph.D., I ran a welfare-to-work 
job training program in New York before joining a firm that helped U.S. 
cities redevelop public housing projects into mixed-income communities.
    In 2003, I moved into the financial services industry, and I spent 
the next 8 years working for several mutual fund and hedge fund 
companies, raising capital and serving as a senior executive in three 
entrepreneurial and dynamic firms. During that time I began to more 
fully understand the role that financial markets play in our economy, 
and how interconnected the global economy is as a result of the ease 
with which capital moves across national borders, industry sectors, and 
asset classes. In an era where CEOs and investors can deploy each next 
dollar, or euro, or real, almost anywhere in the world at almost a 
moment's notice, it is increasingly important that countries like ours 
pay close attention to their financial positions, and that they strive 
to maintain and strengthen the integrity of their capital markets.
    And that is what I would like to close with. If confirmed, you can 
be sure that I will undertake the role of Executive Director with that 
very sensibility in mind at all times. I will strive to be a sound 
steward of our country's capital at the Bank, and I will work to ensure 
that each dollar we commit is used to support the values that have 
proven so durable since America's founding: that open societies are the 
strongest societies; that transparent systems are the most successful 
systems; and that those countries which endeavor to give all of their 
citizens a fair shot at becoming educated, being healthy, and achieving 
economic independence, are the countries that will succeed no matter 
where they happen to be located. Those are just a few of the values I 
have watched President Obama champion for many years now, and I would 
be honored to carry them forward on his behalf, and on the country's 
behalf, as Executive Director of the Bank.
    I look forward to answering any questions you have, and I thank you 
again for allowing me to come before you today.

    Senator Perdue. Thank you, Mr. McGuire.
    Mr. Smith.

            STATEMENT OF GENTRY O. SMITH, NOMINATED 
        TO BE DIRECTOR OF THE OFFICE OF FOREIGN MISSIONS

    Mr. Smith. Thank you, Mr. Chairman, Senator Kaine. I am 
honored to appear before you today as President Obama's nominee 
to be the next Director of the Office of Foreign Missions, OFM. 
I am profoundly grateful for the confidence that the President 
and Secretary Kerry have demonstrated in nominating me for this 
unique and important position.
    My entire professional life has been dedicated to public 
service, beginning with my first career as a police officer in 
Raleigh, NC, to my assignments at embassies in Tokyo, Rangoon, 
and Cairo, and my most recent as the Deputy Assistant Secretary 
for Countermeasures for the Bureau of Diplomatic Security. I 
have strived in each to improve the conditions in which our 
colleagues live and work. I believe my dedication and 
commitment in this regard will serve me well, if given the 
opportunity to lead the Office of Foreign Missions.
    As an organization, its primary goals being to use 
reciprocity to ensure the equitable treatment of U.S. 
diplomatic and consular missions and personnel abroad, 
regulating the activities of foreign missions in the United 
States to protect our foreign policy and national security 
interests, protecting our U.S. public against abuses of 
privileges and immunities by foreign missions operating here in 
the United States, and providing services and assistance to 
foreign missions that are located here on a reciprocal basis.
    As you are aware, OFM was established in 1982 under the 
Foreign Missions Act. In passing the act, Congress made it 
clear that the operations of foreign missions in the United 
States are a proper subject for the exercise of Federal 
jurisdiction.
    For more than 30 years, the act guided the Department's 
management and extension of foreign missions in the United 
States for its privileges and benefits associated with 
acquiring real property, motor vehicle and driving services, 
for tax exemptions, customs clearances, domestic travel 
courtesies and restrictions.
    The committee is well aware of the Department's ongoing 
efforts to ensure that our personnel abroad work in facilities 
that are safe and secure and functional. I can authoritatively 
attest that the relocation of an American Embassy is a complex 
and challenging task. To accomplish this job, the United States 
must have the interest and support of the host governments. In 
many countries, such support is there for the asking. In 
countries where the support is lacking, OFM plays a critical 
role in assisting with the resolution of impasses we sometimes 
face with foreign governments during our attempts to acquire 
real property in those countries and relocating and 
constructing our facilities.
    When a country has an interest in improving or relocating 
one of its missions in the United States, the Office of Foreign 
Missions uses its ability to regulate the acquisition and the 
use of real property by foreign missions as a leverage to 
achieve the Department's own property-related needs in that 
country. Without OFM and its authorities under the Foreign 
Missions Act, we may not have been able to build a U.S. Embassy 
in Beijing or a new annex that is currently under construction 
there. This and more was achieved as a result of reciprocity 
and the Foreign Missions Act.
    In closing, Mr. Chairman, I am honored to have the 
opportunity to address you and the esteemed members of the 
committee. And if confirmed, I will do all that I can to 
further the important objectives that Congress has set out 
under the Foreign Missions Act. I look forward to continuing to 
work with you and to ensure the proper treatment of our foreign 
personnel serving abroad and, as importantly, the foreign 
missions that are here, that they continue to react as good 
neighbors.
    Thank you for the opportunity and your consideration for my 
nomination, and I respectfully ask that my full statement be 
entered into the record.
    Senator Perdue. Without objection, it certainly will.
    [The prepared statement of Mr. Smith follows:]

                 Prepared Statement of Gentry O. Smith

    Mr. Chairman and distinguished members of the committee, I am 
honored to appear before you today as President Obama's nominee to be 
the next Director of the Office of Foreign Missions (OFM). I am 
profoundly grateful for the confidence the President and Secretary 
Kerry have demonstrated in nominating me for this unique and important 
position.
    My entire professional life has been dedicated to public service. 
Beginning with my first career as a police officer in Raleigh, NC, to 
my assignments at our Embassies in Tokyo, Rangoon, and Cairo, and to my 
most recent role as the Deputy Assistant Secretary for Countermeasures 
in the Bureau of Diplomatic Security, I have strived to improve the 
conditions in which my colleagues live and work. I believe my 
dedication and commitment in this regard will serve me well if given 
the opportunity to lead the Office of Foreign Missions, an organization 
whose primary goals are:

   Using reciprocity to ensure equitable treatment for United 
        States diplomatic and consular missions abroad and their 
        personnel;
   Regulating the activities of foreign missions in the United 
        States to protect our foreign policy and national security 
        interests;
   Protecting the U.S. public from abuses of privileges and 
        immunities by members of the foreign missions; and
   The provision of service and assistance to the foreign 
        mission community in the United States on a reciprocal basis.

    As you are aware, OFM was established in 1982 as a requirement of 
the Foreign Missions Act. In passing the act, Congress made it clear 
that the operations of foreign missions in the United States are a 
proper subject for the exercise of Federal jurisdiction.
    For more than 30 years, the act has guided the Department's 
management and extension to foreign missions in the United States, 
privileges and benefits associated with the acquisition and use of real 
property, motor vehicle and driving services, tax exemptions, customs 
clearances, and domestic travel courtesies and restrictions.
    In my estimation, the Foreign Missions Act is a landmark piece of 
legislation which has positively influenced and conditioned the 
environment in which U.S. diplomatic and consular missions abroad 
operate.
    This committee is well aware of the Department's ongoing efforts to 
ensure that our personnel abroad work in facilities that are safe, 
secure, and functional. I can authoritatively attest that the 
relocation of an American Embassy is a complex and challenging task. To 
accomplish this job, the United States must have the interest and 
support of the host government. In many countries, such support and 
assistance are there for the asking. In countries where support is 
lacking, OFM plays a critical role in assisting with the resolution of 
impasses we sometimes face with foreign governments during our attempts 
to acquire real property in their countries for the relocation and 
construction of our facilities.
    When a country has an interest in improving or relocating one of 
its missions in the United States, OFM uses its ability to regulate the 
acquisition and use of real property by foreign missions as leverage to 
achieve the Department's own property-related needs in that country. 
Without OFM and the authorities it has under the Foreign Missions Act, 
we may not have been able to build the new U.S. Embassy in Beijing, or 
the new annex building under construction there. This and more was 
achieved as a result of reciprocity and the Foreign Missions Act.
    In closing, Mr. Chairman, I am honored to have the opportunity to 
address you and the esteemed members of the committee. If confirmed, I 
will do all that I can to further the important objectives Congress set 
out in the Foreign Missions Act, and I look forward to continuing to 
work with you to ensure proper treatment of our Foreign Service 
personnel abroad, and that foreign missions are good neighbors here at 
home.
    Thank you for this opportunity and your consideration of my 
nomination. I respectfully request that my full statement be entered 
into the record, and I will be happy to answer your questions.

    Senator Perdue. Thank you, Mr. Smith.
    Mr. Adams.

         STATEMENT OF CHARLES C. ADAMS, JR., NOMINATED 
          TO BE AMBASSADOR TO THE REPUBLIC OF FINLAND

    Mr. Adams. Thank you, Mr. Chairman. Mr. Chairman, Senator 
Kaine, it is a renewed pleasure to have the opportunity of 
appearing today before this committee. It is a tremendous honor 
to have been renominated by the President for this post, and I 
thank both the President and Secretary Kerry for the confidence 
that they have shown in me. If confirmed, I very much look 
forward to working with you and with your colleagues in 
Congress to further U.S. interests in Finland.
    Mr. Chairman, with your kind permission, I would like to 
say a few words--to repeat a few words actually that I said on 
a previous occasion with respect to the reasons why for me, if 
confirmed, the privilege of serving as an Ambassador of the 
United States has deep personal significance.
    My late father, Charles C. Adams, dedicated the entirety of 
his professional career to representing the United States as an 
officer of the Foreign Service, supported throughout by my late 
mother, Florence Schneider Adams. They, and what came over time 
to be a family of six children, spent many years in posts 
around the world with stints in between back home here in 
Washington, principally in Europe and Africa. And so I had the 
opportunity as a Foreign Service brat to witness firsthand from 
the perspective of a kid at the time the enormous skill and 
savvy and dedication and personal courage that my parents 
brought to their service to their country, as did also all of 
the other men and women of the Foreign Service with whom they 
were privileged to serve. And I saw also the burdens and the 
sacrifices that they were prepared to endure in serving their 
country.
    Now, after my own service in the Peace Corps in East Africa 
from 1968 to 1970, I chose to go into the private sector, and I 
spent more than 40 years in the practice of international law 
and policy at high levels. But throughout this time, I have 
always had very close to my heart the idea that as a salute to 
the memory of my mom and dad and to the magnificent men and 
women of the Foreign Service with whom they served that I, in 
turn, might some day be afforded the profound privilege of 
serving my country as an ambassador of the United States.
    And I have to say that in the 6 months of a holding 
pattern, in effect, since I last had the privilege of appearing 
before this committee, the sentiment on my part, far from 
having in any way been diluted or diminished, has in fact, been 
reinforced. And so I do thank you very much, indeed, for the 
opportunity of reappearing before this committee today.
    I am very excited that the President should have asked me 
to represent the United States in Finland. Finland is a very 
close partner of the United States. It has been a member of the 
European Union since 1995, has developed an innovation-led 
economy, has worked very closely with the United States as a 
partner in the Partnership for Peace of NATO, and has supported 
the United States in Afghanistan and elsewhere in promoting 
human rights and security around the globe.
    As to the matter of shared security, ever since 1950 
Finland has been a very dedicated participant in U.N. 
peacekeeping missions around the world, and although not a 
member of NATO, it is, as I have mentioned, a participant in 
NATO's Partnership for Peace program. And Finland maintains a 
very high level of cooperation and interoperability with the 
NATO alliance. It regularly participates in joint training 
missions with the United States and its allies, including joint 
air training later this very month with Sweden and Estonia and 
the United States Air Forces.
    And Finland is one of the largest contributors to the OSCE 
special monitoring mission in Ukraine with 19 observers on the 
ground currently and very substantial contributions as well to 
the observation force in respect of the Ukraine elections last 
year.
    The Finnish Government has also contributed troops to the 
Resolute Support mission in Afghanistan, has suffered 
fatalities, along with others of our allies, and it has pledged 
$1 billion a year from 2015 through 2017 in further support of 
the Afghan National Security Forces. Finland has also taken the 
lead on the implementation of U.N. Security Council Resolution 
1325 in respect of women's rights and participation of women in 
Afghan civil society.
    Secondly, the United States and Finland share the vision of 
a strong, robust transatlantic economy that delivers benefits 
for all of our citizens. That is why, if confirmed, one of my 
very top priorities will be increasing economic cooperation 
between our two countries through expanded bilateral trade and 
investment. The United States is currently Finland's fourth-
largest customer and sixth-largest supplier with bilateral 
trade valued in excess of $7 billion. I believe that we can do 
still more and enhance the position of the United States as a 
principal valued trading partner of Finland.
    I will work closely also with the Finns on the increasing 
importance of the Arctic region. As you know, the United States 
is about to take over, on April 25, the chairmanship of the 
Arctic Council, and the Finns will have the next succeeding 
chairmanship of the Arctic Council in 2018 to 2019.
    As to our shared values, the United States and Finland have 
a relationship which continues to thrive because of the strong 
people-to-people ties between our two nations. And these 
relationships are the lifeblood of our partnership. I can 
recall having had, as a college student at Dartmouth, a summer 
job as an escort interpreter with the Department of State, and 
I had the occasion to participate in the international visitors 
program as an interpreter with delegations from abroad. And it 
happens that Finland, in participating in these IVP programs 
over the years, now has as alumni many senior members of the 
Finnish Government, including President Niinisto, Prime 
Minister Stubb, and other important figures in Finland's 
Government who came to see the United States as young students 
at the time.
    Senator Perdue. I apologize for interrupting. Could we move 
to a conclusion so we can move this along? I apologize. I am 
trying to keep us on schedule here. Thank you.
    Mr. Adams. Well, I thank you for your attention.
    [The prepared statement of Mr. Adams follows:]

              Prepared Statement of Charles C. Adams, Jr.

    Mr. Chairman and honorable members of the committee, it is a 
privilege to appear before you today as the President's nominee to be 
Ambassador to the Republic of Finland. It is a tremendous honor to be 
asked to serve in this post, and I would like to thank President Obama 
and Secretary Kerry for their confidence in me. If confirmed, I look 
forward to working with you and your colleagues in Congress to further 
U.S. interests in Finland.
    With your kind permission, I would like to say a few words about my 
personal background and why this makes the privilege to serve as an 
ambassador so meaningful, if confirmed by the Senate.
    My late father, Charles C. Adams, dedicated the entirety of his 
professional career to representing the United States as a Foreign 
Service officer, supported throughout by my late mother, Florence 
Schneider Adams. They, and what came over time to be a family of six 
children, spent many years in posts all over the world, principally in 
Europe and Africa, between assignments back home here in the United 
States. I had the opportunity to witness at first hand, through the 
eyes of the ``Foreign Service brat'' that I was, the enormous skill, 
savvy, dedication, and courage that my parents, and all other 
professionals of the Foreign Service, brought to their service to their 
country, and the burdens and sacrifices they were prepared to endure.
    After service in the Peace Corps in East Africa in 1968-1970, I 
chose to enter the private sector, and have practiced international law 
and policy at high levels for now over 40 years. But I have always had 
close to my heart the idea that, as a salute to the memory of my mom 
and dad, and to the magnificent men and women of the Foreign Service 
with whom they served, I might someday be afforded the extraordinary 
privilege of serving my country as a United States Ambassador.
    My feelings in this regard have in no way diminished; rather they 
have intensified in the 6 months since having first shared these 
remarks with this distinguished committee.
    I am very excited that the President asked me to represent the 
United States in Finland. Finland is a close U.S. partner. It has been 
a member of the European Union since 1995, has developed an innovation-
led economy, engages closely with us as a NATO partner, including in 
Afghanistan, and leads in promoting human rights around the globe.
    Finland and its EU partners have stood with the U.S. in 
implementing sanctions against Russia, sharing our belief that Russia 
must be held accountable for its actions in Ukraine and abide by its 
commitments under the Minsk Agreement.
    Participation in multilateral fora is a core component of Finland's 
foreign policy and this is demonstrated through its partnership with 
the U.S. in international organizations like the United Nations and the 
Organization for Security and Cooperation in Europe.
    If confirmed, I will work to sustain and advance the strong U.S.-
Finland bilateral relationship. I will work to do so by championing 
U.S. national interests across three areas: our shared security, shared 
prosperity, and shared values.
    First, on our shared security: ever since the 1950s, Finland has 
been a dedicated participant in U.N. peacekeeping missions around the 
world. At the 2014 NATO summit in Wales, Finland became an Enhanced 
Partner of the alliance. Finland has been a participant in NATO's 
Partnership for Peace program for years and maintains a high level of 
cooperation and interoperability with the alliance. Finland regularly 
participates in joint training missions with the U.S. and our allies, 
including joint air training later this month, and is one of the 
largest contributors to the OSCE Special Monitoring Mission (SMM) in 
Ukraine, contributing 19 SMM observers.
    The Finnish Government has contributed troops to the Resolute 
Support Mission in Afghanistan, and has pledged $8 million per year 
from 2015 to 2017 in support for the Afghan National Security Forces. 
Finland has taken the lead on implementation of UNSCR 1325, the 
Resolution for Women, Peace and Security, which seeks to protect 
women's rights and participation in Afghan society.
    Finland also played a critical role in addressing the crisis in 
Syria through its participation in the mission to transport and destroy 
Syrian chemical weapons and in 2014 provided over $14 million in 
humanitarian assistance to the Syrian people.
    Finland has demonstrated a commitment to combating violent 
extremism in partnership with the United States, having implemented 
enhanced antiterrorism legislation in January and participating in the 
Foreign Terrorist Fighters Working Group.
    Second, the United States and Finland share the vision of a strong, 
robust transatlantic economy that delivers benefits for all our 
citizens. That is why, if confirmed, one of my top priorities will be 
increasing economic cooperation between our two countries, through 
expanded bilateral trade and investment.Finland strongly supports a 
Transatlantic Trade and Investment Partnership (T-TIP), which, if 
successfully negotiated, could further increase bilateral economic ties 
and strengthen the overall U.S.-EU economic relationship. I will also 
work closely with the Finns on the increasingly important Arctic 
region. Finland is eager to work with us on our upcoming chairmanship 
of the Arctic Council, and will take over the chairmanship after us in 
2017.
    Finally, on our shared values, the U.S.-Finnish relationship 
continues to thrive because of the strong people-to-people ties between 
our two nations. These relationships are the lifeblood of our 
partnership. If confirmed, I will travel throughout the country meeting 
with students, media, local officials and civil society listening to 
their priorities and concerns and speaking to the enduring value of our 
cooperation.
    Finland has played an active role in advancing our shared security, 
economic, and social values. If confirmed, I look forward to 
representing my country in advancing a still deeper connection between 
the United States and Finland.
    I am grateful for the opportunity to have addressed you today, and 
am at your disposal to answer any questions you may have. Thank you.

    Senator Perdue. No. They are very eloquent remarks. I 
apologize for closing that off.
    It must be easier the second time, guys. You did very well.
    As we said in the opening remarks, this is the second time 
you have been here. I appreciate your forbearance.
    I have a couple questions of my own here for the record, 
and then we will move to the ranking member, Senator Kaine, for 
his remarks and questions as well. I will try to be brief. I 
appreciate your forbearance today. And I am glad your mom is 
here, Mr. McGuire.
    Dr. McGuire. Thank you, sir.
    Senator Perdue. Mr. Haney, as Ambassador to Costa Rica, 
what would your top policy priorities be as you approach that 
country? It is one of the shining stars, as you said, in 
Central America, indeed Latin America. And what can we do to 
raise our cooperation together to the next level?
    Mr. Haney. Thank you, Mr. Chairman, for the question.
    I think the broad policy objectives that I would have in 
Costa Rica very much mirror--align with the broader objectives 
we have within Central America as they were recently outlined 
in the Strategy for U.S. Engagement in Central America.
    So specifically one would be promoting prosperity and 
economic integration from a regional perspective, enhancing 
security, as well as promoting improved governance. And I think 
Costa Rica can both benefit from our focus on these areas, as 
well as help us do some of the heavy lifting that we need in 
the region.
    So, for example, on the prosperity and regional 
integration, Costa Rica has done fairly well relatively. As you 
said, it is a shining star within the region and within Latin 
America. It is 40 percent of the trade of the CAFTA-DR, the 
free trade agreement within the region. But there are still 
other areas that they can take advantage of within this trade 
intraregionally, and to do that, they need to address things 
such as the high cost of power, as well as the transportation 
infrastructure and facilitating trade on an intraregional 
basis. I think that is an overlapping priority that we have 
with the Solis government and that is something that we could 
work on with them.
    As far as enhancing security goes, Costa Rica has done an 
excellent job. Coming from the private sector, I always look at 
return on investment. So what does the U.S. taxpayer get for 
the investment we are making in our partner countries? And 
Costa Rica, by far, has probably done one of the best jobs in 
the region on security cooperation. Last year, they seized more 
cocaine than any other country in Central America, and it was 
30 percent more than the previous year. In the last 4 years, it 
has continued to grow up. So I think we can continue to work on 
security with the Costa Ricans.
    And then I think very much and very importantly for Costa 
Rica and for the United States is that our relationship is at a 
different level now. It has matured to the point where we look 
at Costa Rica as an asymmetrical partner in helping us address 
some of the key issues in the region. And so I would hope to be 
able to help the Costa Ricans, perhaps do some of the 
initiative-building activity that they can do to take some of 
their experience in promoting human rights and democracy, 
education, as well as economic development and transport that 
to the rest of the region as well.
    Senator Perdue. Thank you.
    Mr. McGuire, what is your impression of the coordination 
between the World Bank and the regional development banks? More 
broadly, in light of the request of the general capital 
increases from these institutions, what do you see as the 
division of labor between these institutions, and how should 
Congress think about and prioritize those requests?
    Dr. McGuire. Sure. So on the first of those questions, the 
coordination there--it is ongoing. It is consistent. The World 
Bank, obviously, is considerably larger than the others, the 
African Development Bank, the Inter-American, the Asian 
Development Bank, the European Development Bank. And so there 
is always a discussion back and forth, and as many people have 
explained it to me, people often take the World Bank's lead. So 
the practices and the policies of the bank are quite 
consequential in terms of the practices of some of the others.
    Certainly, were I to be confirmed, I already know some of 
the other executive directors, at least the executive director 
at the Inter-American Development Bank. I know the woman who 
has been nominated for the African Development Bank. I 
certainly look forward to maintaining and strengthening those 
relationships and then making sure that staff are talking where 
and how it is appropriate as well. So that is the first piece.
    In terms of the division of labor, the World Bank has 
extraordinary expertise in any number of countries around the 
world. That said, one can always get even more expertise from 
those who are on the ground who are focusing just on a 
particular region. And so certainly I would expect for an 
intellectual exchange.
    In terms of projects themselves, I think that is a 
discussion that should be an ongoing one, and there are certain 
banks which have greater expertise in certain areas, let us 
say, on financial reform or education. The bank has a 
particularly strong team thinking about infrastructure and 
public health, and I think we ought to play to our strengths 
and make sure that we are not just overlapping all the time but 
that we are complementary in how projects fit with one another.
    And then there are instances where there are particular 
projects that are larger, perhaps a little riskier, where we 
actually do want to be alongside one another to spread out some 
of that risk and to make sure that we are really utilizing the 
U.S.'s contributions to all the banks most effectively.
    Senator Perdue. Thank you very much.
    Mr. Smith, what do you consider to be the OFM's highest 
priorities, and how do you perceive your potential role in 
achieving them. You have served in the State Department as 
Deputy Assistant Secretary and Assistant Director for 
Countermeasures in the Bureau of Diplomatic Security, since 
2009 I think.
    Mr. Smith. That is correct.
    Senator Perdue. How do you perceive your role in achieving 
those priorities?
    Mr. Smith. Senator, as I stated during my previous 
testimony here, my highest priority will be ensuring the 
equitable treatment of our personnel who serve in facilities 
abroad by the host governments under which they operate and 
also make sure that our national interests and foreign policy 
interests here in the United States are protected by regulating 
the activities of those foreign missions that are located here 
in the United States.
    How I will do that is by remaining engaged with the various 
regional bureaus at the State Department, along with their 
regional executive directors, who have day-to-day interaction 
with our embassies and consulates that are around the world to 
make sure that any issues that come up that we can address from 
a perspective of reciprocity that we can do that.
    I will also, of course, stay in close contact with the 
Under Secretary for Management and the chiefs of missions at 
those embassies so that if I personally have to be engaged in 
any of those activities to bring about resolution, that I can 
do that as well.
    And as I stated during my last testimony, of course, I will 
remain engaged with the Congress, with the members here, and 
with your committees if there are specific issues of interest 
that we can resolve as well.
    Senator Perdue. Great. Thank you.
    My time has expired. In the second round, I have one more 
question for Mr. Adams, but the ranking member--we are going to 
waive the time constraint on this since he has not had a chance 
for his opening remarks.
    So, Senator Kaine.
    Senator Kaine. Thank you, Mr. Chair. And thanks to all the 
witnesses.
    I have voted for you once already. So I am not going to ask 
questions and make you think I am trying to satisfy myself of 
whether I made a mistake or not. I very much support you. I 
congratulate you on the renomination.
    I also want to say, Mr. Adams, your story about your own 
family's personal history is a very touching one. But it really 
does call to mind the tremendous sacrifice that our Foreign 
Service professionals make. The three of you, I guess, will 
have the title of Ambassador, and then, Mr. McGuire, you will 
be Executive Director. But you are all Ambassadors, but you 
also will be working with some fantastic small A ambassadors.
    As I travel to do CODEL's as part of this committee, when I 
am in another country, I almost always will meet with first- 
and second-tour Foreign Service officers, the newcomers to the 
State Department family to ask them about their lives and their 
perceptions and to answer their questions. I always come back--
Senator Cornyn and I were in Latin America 3 weeks ago. I 
always come back with a high degree of real inspiration for the 
service. I think we do a good job of thanking our military who 
serve in harm's way these days, but an awful lot of our 
nonmilitary personnel who serve overseas who get sent to places 
that may not be their first choice, sometimes to places where 
they cannot bring family, sometimes to places where there is 
physical danger--it is really important work. And so you will 
be working with wonderful colleagues, and I know that you will 
express that appreciation to them every day that you serve.
    To just maybe go left to right, Mr. Adams, I want to ask 
you about--we had a hearing this morning about Russia and the 
Ukraine. We have had a lot of hearings about Russia in the 
months since you were here and about what is happening. Talk a 
little bit about the Finland-Russia relationship now and, in 
particular, whether the sanctions that the United States and 
NATO have imposed on Russia are having an effect on the economy 
of Finland.
    Mr. Adams. Thank you, Senator. Let me address the second 
part of your question first, if I may.
    Finland, as you know, is a very strong proponent of the 
sanctions regime against Russia and has implemented those 
sanctions forcefully. Even though, inasmuch as Finland has a 
very active trading relationship with Russia, it is Finland 
which, among the EU countries, has probably paid the highest 
price in terms of the impact on its economy. Finland's exports 
to Russia in 2014 were down by 13 percent in respect of 2013, 
largely as a result of the direct sanctions and of the reduced 
value of the ruble which impeded Russian purchasing power in 
respect to Finnish goods and services. Finland has stepped up 
and has made it clear that it is prepared not only to enforce 
existing sanctions but to advocate for enhanced and stronger 
sanctions to the extent that the crisis in Ukraine is not 
rapidly brought to a satisfactory close.
    The relationship between Finland and Russia is ancestral. 
As you know, Finland spent over a century as a grand duchy of 
the czar of Russia from 1809 to December 6th of 1917. There had 
been dealings before. There have been dealings after, including 
armed conflict, as you know. In the course of the Second World 
War, Finland on two separate occasions staved off the assaults 
of the Red Army, incurring the admiration of the world in so 
doing.
    It is a delicate relationship. Finland is very firmly 
anchored with the West in terms of its values, in terms of its 
liberal political system, its democracy, in terms of also of 
its sense of oneness with its neighbors to the west and to the 
south, even as Finland has sought to maintain a relationship 
with Russia that is based on shared respect and a concern for 
good neighborly proximity, and Finland has succeeded admirably 
in so doing.
    The crisis in the Ukraine has brought focus on Finland as 
an interlocutor and bearer of messages to Russia which are 
heeded and paid close attention to by Russia because of the 
privileged posture of Finland and the respect with which 
Finland is held by Russia due to this relationship of several 
centuries standing. And if confirmed, I would look forward to 
working closely with the Finnish Government in continuing to 
strive for a satisfactory and prompt resolution of the crisis 
in Ukraine to which Finland is uniquely positioned to 
contribute.
    Senator Kaine. Thank you very much, Mr. Adams.
    Mr. Smith, the issue of the reciprocal treatment of U.S. 
Embassy and consular personnel in nations where they serve and 
then our treatment of their personnel here--there have been 
some newsworthy instances in the last couple years, most 
notably in some back and forth between the United States and 
India with respect to treatment of Indian Embassy and consular 
personnel in New York and then actions taken in India that 
challenged some of the rights of our Embassy personnel.
    But one that is ongoing right now that I am just kind of 
curious about--I just returned from Latin America with Senator 
Cornyn, and when we were in Colombia, there was an escalating 
tension with the neighboring country of Venezuela. And my 
understanding is that Venezuela has sort of directed us to 
reduce our number of Embassy and consular personnel from--I do 
not know--about 100 down to 17. There are about 80 Venezuelan 
consular personnel in the United States. I am just curious if 
you have any insight that you can share in an opening setting 
as to how we are trying to work through that particular 
challenge to the credentials to our Embassy and consular 
personnel in Venezuela.
    Mr. Smith. Well, as you stated, Senator, as much as we can 
talk about it in open session, which is rather limited, but I 
agree with you. We got the number that we needed to reduce down 
to 17. We are looking at the situation now because, as you 
stated, there are more than 17 diplomats from Venezuela that 
are currently operating in the United States. And so we will 
continue in negotiations and discussions with the Government of 
Venezuela to come to a much more honest recognition of how many 
personnel they have here and hopefully be able to respond in a 
reciprocal way so that we can keep our numbers pretty much 
equal to what their numbers are. So it is still a situation 
that is developing. It is one that is still very much under 
study with the Department and one in which we remain engaged 
with the Venezuelans on this particular issue.
    Senator Kaine. Great. Thank you, Mr. Smith, for that.
    Mr. McGuire, I want to ask you about the activities of the 
IBRD in the Americas. The President currently has a budget 
proposal in that is Plan Central America. It is with respect to 
the Northern Triangle countries in Central America, Honduras, 
Guatemala, and El Salvador. The dramatic escalation in the 
number of unaccompanied minors coming to the United States, an 
average of about 20,000 to 35,000 in 2013, nearly 70,000 in 
2014, drew a lot of attention to these three countries that 
have three of the worst murder rates in the world, huge amounts 
of poverty. And the President's proposal deals with kind of an 
all-encompassing strategy to help them deal with security 
challenges, fight narcotrafficking, and also do the kind of 
economic development and justice reforms that will enable the 
people to want to stay rather than to have to leave their 
countries due to poverty and violence.
    Talk a little bit about the IBRD kind of portfolio. It 
looks to be about a third of activity is in the Americas. How 
can the IBRD be an asset to this need to hopefully upgrade the 
security and economic situation in Central America so we do not 
see the push of unaccompanied minors coming to our country.
    Dr. McGuire. Sure. I appreciate it. And I was actually in 
Colombia just last summer on a trade mission with the Commerce 
Department, and so I thought about a number of these issues 
from a regional perspective myself recently.
    I would say the first place I would start is importantly to 
your point, realizing that there is an all-in strategy here in 
the sense that on certain matters it will be the State 
Department which is able to take the lead and help the Northern 
Triangle countries in particular. In certain instances, it is 
USAID on the bilateral side. It is worth noting that 11 of the 
21 countries with which the United States has free trade 
agreements are in this hemisphere. All three of the Northern 
Triangle countries we have free trade agreements with. So there 
is an existing strong base there for increasing commerce, which 
leads to increasing stability.
    That is really the part and parcel of what the World Bank 
is about, is stabilizing economies, growing economies so that a 
lot of other problems often can fade away so long as you are 
paying attention to them a little more directly like security 
and some of the things that you are addressing. So I think that 
is important to realize. There is a larger context here and 
this is an ongoing set of challenges that we are dealing with.
    In terms of the IBRD, you are right. I believe it is closer 
to a quarter of the overall portfolio is within Latin America. 
So that is pretty significant. I would note that the two large 
economies within the region, the largest, Brazil and Mexico, 
are number one and number two in terms of total portfolio 
exposure, if you will, at the bank. So there is consistent and 
ongoing work. And I think the challenge for the bank is to 
continue to look at where it can have the greatest impact.
    One example I will use--and please take it not as a 
recommendation to bank staff where they ought to go. But when I 
was in Colombia, one of the things I heard an awful lot about 
is the great potential that the eastern region had for 
developing agriculture. It is very fertile land. One of the big 
challenges that they have is, should that be fully developed, 
there are not enough roads and rail to get to market in the 
more densely populated regions to the west but also for export. 
And so these sorts of infrastructure projects could be 
something that would make a difference. Again, I am not making 
recommendations but saying these are the kind of things that 
the bank and its expert staff continue looking at to say how do 
we grow the economy, how do we diversify the economy, how do we 
give people multiple options so perhaps they are not drawn into 
some of the other activities that are going on down there.
    And then finally, I would say, getting back to my original 
point, it is working in conjunction with all the other U.S. 
Government entities to make sure that we are working hand in 
hand and not at cross purposes so we can be most effective in 
trying to stabilize the region and help it to continue to grow.
    Senator Perdue. Thank you, Mr. McGuire.
    And finally, Mr. Haney, I want to congratulate you. On this 
CODEL I was talking about, we spent about 35 minutes in the 
airport in Costa Rica, and the mere knowledge that we were 
there caused Embassy officials to drive and meet with us in our 
layover and ask us penetrating questions about when Fitz Haney 
was going to be confirmed by the Senate of the United States. 
And I thought if they drove all the way out to the airport 
about an hour from downtown knowing we would have 5 minutes to 
talk on your behalf, that speaks well for the team that you 
will be working with.
    Costa Rica, a fascinating country; 120,000 American 
citizens, approximately, live there and more than 1 million 
Americans visit Costa Rica every year.
    As we are grappling with some of the issues I asked Mr. 
McGuire about some of the security challenges in Central 
America, really two things. What can we do to help Costa Rica 
share some of its expertise, civil justice system, for example, 
in Honduras--I am very familiar with Honduras, having lived 
there. One out of 100 murders leads to a conviction. So there 
is almost complete impunity for the most serious crime there 
is, and that means people do not cooperate with the courts or 
police. Why be a witness? Why tell somebody what you saw if 
there is not going to be a conviction anyway? And that is a 
fairly common thing in Honduras, El Salvador, Guatemala. Costa 
Rica has a different tradition. I am interested in what you 
might be able to do to help sort of share that tradition in the 
region because of the cultural similarities.
    But also, I am curious. Is Costa Rica seeing any up-tick in 
criminal activity? There is a little bit of a squeezing the 
balloon phenomenon. The better we do in Colombia, the more we 
push some criminal activity elsewhere. When we invest in Plan 
Merida in Mexico, we push some criminal activity elsewhere. Is 
Costa Rica seeing any escalation, especially in narcotraffic, 
and what might the United States do to help them deal with that 
issue?
    Mr. Haney. Thank you, Senator. And thanks to the team in 
Embassy San Jose who drove out to advocate on my behalf. I hope 
to be down there soon.
    Let me start with the second part of your question. I do 
think that is the importance of the entire approach, both from 
the U.S. Government perspective, as well as the strategic 
perspective that we have to address this on a regional basis. 
Because of the success we have had in Colombia and success we 
have had in Mexico, being a business person, my belief is that 
as people develop distribution channels, they are going to ship 
through whatever they think they can make money on. And so the 
countries in the middle, so all of Central America, have been 
squeezed and have all experienced an up-tick or increase in 
violence. And Costa Rica has not been spared that up-tick. Last 
year, the murder rate went back up in Costa Rica, and it was 
most directly related to narcotrafficking.
    So I think the fact that the country has, like I said, 
seized more drugs last year than any other country in the 
region--and that was a 30-percent increase over the previous 
year, and it has been 4 years in a row--tells, I think, one of 
two things. One is that the Costa Ricans are a very willing and 
capable partner, and we need to continue to partner with them 
on initiatives around security. And two, probably other 
countries are not doing as well as they should do if Costa Rica 
is number one in this. So I think they are exposed, and we can 
do everything we can to continue to support their democratic 
institutions so that they cannot become as tainted or as 
fragile as the Northern Triangle institutions are.
    Now, what can Costa Rica do? I do think that Costa Rica, 
given its strong traditions and given its relative success on 
democracy and human rights, can serve to help institution-build 
within the region. And so I think our engagement--you know, we 
have not had an ambassador in Costa Rica now for almost 2 
years, and I think our high-level engagement with the 
Government of Costa Rica will help them really to move to the 
next level. It is a natural impulse, I think, of the Solis 
government. President Solis has said that Costa Rica cannot 
prosper if the rest of the region is not prospering as well. 
And I think that is a shift in mindset that the Costa Ricans 
have come to as of late, but I think that we need to do 
everything we can to help them continue on that path.
    And so one of my priorities will be engaging both the Costa 
Rican Government, as well as broader civil society really, 
because Costa Rica has a very deep and broad civil society, and 
see how can we bring training and other things, from a judicial 
standpoint, some of the things that we have helped, actually 
Costa Rica with, through some of the CARSI funding we have done 
over the last 5 years to really export that expertise to the 
Northern Triangle to really help and help the Costa Ricans 
continue to realize that helping the Northern Triangle is 
actually helping them as well.
    Senator Kaine. Thank you, Mr. Chair. I have no further 
questions, and thanks to all the witnesses.
    Senator Perdue. Thank you.
    I just have a quick question, Mr. Adams, for the record. As 
you think about taking on this responsibility--and let me echo 
the ranking member's comment about your story. That is very 
touching.
    As you think about, though, taking on this responsibility, 
how do you see the priorities? What will be your main focus as 
you take on this responsibility?
    Mr. Adams. Senator Perdue, I think that the first priority 
for any United States Ambassador has to be the safety and the 
security of embassy personnel and of U.S. citizens at large in 
the particular country. And certainly this is something that, 
if confirmed, I will have foremost in my mind every day of my 
service in Finland.
    Second, there is the matter that Senator Kaine addressed 
just now, the resolution of the crisis in Ukraine and the role 
that can be played by Finland in a constructive sense, working 
with the United States and with the European Union to 
communicate to the Russians the absolute necessity of finding a 
satisfactory resolution to this crisis quickly in order that 
the sanctions regime can gradually be diminished rather than 
strengthened still further.
    Thirdly is the matter of the expansion of the bilateral 
trade relationship between Finland and the United States where, 
as I indicated, I believe that the United States can move up in 
the rankings both as a customer of Finland and as a supplier of 
goods and services to that country.
    Senator Perdue. Thank you very much.
    Gentlemen, thank you for your comments today and for your 
forbearance and for being here today. Your testimony is in the 
record, and I am very impressed.
    Just so you know, we are going to keep the record open in 
case Senator Gardner or any other members of the committee have 
any last-minute questions. I do not know that there will be 
any. But we ask that you respond to those if you get those in 
the next few days.
    Again, I really want to thank you for your willingness to 
serve our country. I am very encouraged when I meet high-
quality people with backgrounds like yours willing to serve. So 
thank you very much.
    With the thanks of this committee, unless the ranking 
member has anything else, we will stand adjourned. Thank you 
very much.
    [Whereupon, at 3:20 p.m., the hearing was adjourned.]

                              ----------                              


              Additional Material Submitted for the Record


    Responses of Matthew T. McGuire, Nominated to be U.S. Executive 
Director of the International Bank for Reconstruction and Development, 
              to a Questions from Members of the Committee

                director-designate mcguire's responses 
                   to a question from senator corker
    Question. The World Bank Board in the next few months will be 
reviewing staff recommendations to improve the procurement practices of 
the Bank. While a number of very positive steps are being proposed, it 
is my understanding that, currently, the staff does not appear to be 
planning to propose changes to the bid price preference margins that 
are granted to domestic bidders on bank projects (15 percent preference 
on goods and 7.5 percent on works). Such preferences raise questions 
about compatibility with efficient procurement and fair bid 
competition. In fact, the impact of this practice can affect issues 
that go beyond Bank procurement. For example, the Bank's policy 
sometimes serves as an imprimatur for many developing countries to 
follow this practice in their own procurement, all of which is to the 
detriment of U.S. based bidders.

   If confirmed, will you press for a prompt and serious 
        review of this practice?

    Answer. Yes.

                               __________
                director-designate mcguire's responses 
                   to questions from senator barrasso
    Question. I appreciate that in your testimony, you committed to 
``be a sound steward of our country's capital at the Bank.'' It is 
critically important that U.S. resources are used in a responsible and 
effective manner.

   Do you believe requiring borrowers to accept higher cost 
        energy projects is a responsible use of taxpayer dollars when 
        affordable and reliable alternatives are readily available?

    Answer. The World Bank should support expansion of low-cost, 
reliable energy access in developing countries, and should do so taking 
into account full lifecycle costs, including environmental and social 
costs. In some instances, this may lead to higher costs up front, but 
should not lead to higher costs for the life of the project. The World 
Bank has an important role to play in increasing the commercial 
viability and promoting the expansion of renewable, clean, and 
efficient energy sources and technologies.

    Question. If confirmed, what criteria would you use to determine 
whether you will vote in support of energy development projects at the 
World Bank?

    Answer. As I evaluate energy projects, I will look to see that the 
project meets the country's energy needs, has considered all relevant 
alternative approaches, and is as sustainable (both financially and 
environmentally) as possible. Of course, there are a variety of issues 
to consider in any project, including existing laws and policies, and 
these will apply to energy projects as well.

    Question. Will you vote in support of energy development projects 
that include oil, coal, and natural gas at the World Bank?

    Answer. I will vote in favor of projects that are consistent with 
U.S. law and policies and the World Bank's own operating guidelines. 
Consistent with its own Energy Sector Directions Paper, the World Bank 
should work to increase the commercial viability and promote the 
expansion of renewable, clean, and efficient energy sources and 
technologies. Global energy needs are vast, and there are instances 
where fossil fuels like gas and oil can play a role in the transition 
to such sources. Both the administration's Climate Action Plan and the 
World Bank's Energy Sector Directions Paper recognize the important 
bridging role that natural gas can have in moving toward more 
sustainable sources of energy supply.

    Question. What are the current energy policies, rules, and 
restrictions at the World Bank that impact financing of energy 
development projects dealing with fossil fuels?

    Answer. In July 2013, the World Bank adopted a new approach to its 
engagement in the energy sector. The approach recognizes the importance 
of increasing access to modern energy services through an integrated 
approach that addresses both energy supply and demand issues, including 
energy efficiency, tariff pricing, and reducing technical losses. The 
approach notes that the World Bank Group will ``only in rare 
circumstances'' support new greenfield coal power generation projects, 
such as meeting basic energy needs in countries with no feasible 
alternatives. The paper also says that the World Bank will scale up its 
work helping countries develop national and regional markets for 
natural gas.

    Question. The World Bank approved a total of $1.6 billion in new 
projects in China through its nonconcessional window in fiscal year 
2014. In fiscal year 2014, China was the third-largest recipient of 
financial assistance from International Bank for Reconstruction and 
Development, after Brazil and India. In 2014, China participated in the 
creation of two separate development banks called the Asian 
Infrastructure Investment Bank and the New Development Bank.

   Why is the World Bank continuing to lend substantial 
        resources to China, when China can more than meet their 
        financing needs in the international capital market and started 
        creating their own international lending institutions?

    Answer. China's per capita income ($6,550) remains below the 
threshold ($7,185) at which point World Bank management is supposed to 
initiate discussions about graduation.
    If confirmed, I will encourage the World Bank to begin discussions 
to transition China away from World Bank lending as it crosses the 
graduation threshold and to move toward other vehicles, such as 
reimbursable technical assistance and analytical and advisory 
assistance, to meet its development needs.

    Question. What is your view of the Asian Infrastructure Investment 
Bank and the New Development Bank? What kind of duplication will these 
new development banks have with existing multilateral and regional 
institutions?

    Answer. I believe that there is a pressing need to enhance 
infrastructure investment around the world and that any new 
institutions should be designed to complement the existing 
institutions. I also believe that any new multilateral institution 
should incorporate the high standards that the international community 
has collectively built at the World Bank and the regional development 
banks.

    Question. Do you believe that lending substantial resources to 
dynamic emerging market economies with access to international capital 
markets diverts capital away from countries with greater needs and lack 
of financial options?

    Answer. No. The World Bank's sovereign lending is split between two 
different windows specifically to address this issue. Countries with 
greater needs and a lack of financial options receive concessional 
financing (grants or highly concessional loans) through the World 
Bank's concessional window--the International Development Association 
(IDA). As a country's per capita income increases and it gains access 
to international credit markets, it graduates from IDA to the World 
Bank's nonconcessional window--the International Bank for 
Reconstruction and Development (IBRD).
    The allocation of the IBRD's financial resources depends on a 
variety of factors, including the size of the borrower's population, 
economy, and its credit ratings. This method of allocating resources 
helps the IBRD to maintain its AAA credit rating and limits the need 
for frequent infusions of capital by its shareholders. Given differing 
credit profiles, reducing lending to upper middle-income countries will 
not result in a dollar-for-dollar increase in capital available for 
IBRD lending to lower middle-income countries. The IBRD must be able to 
provide adequate resources to lower middle-income countries as they 
graduate from IDA, but the IBRD has taken a number of steps to ensure 
that it has adequate capital resources to do so over the medium-term.

    Question. What specific policies do you propose for graduating 
middle-income countries at the World Bank?

    Answer. If confirmed, I will continue to urge World Bank management 
to apply the World Bank's existing graduation policy in a more 
consistent fashion. According to World Bank policy, countries remain 
eligible to borrow from the IBRD until they are able to sustain long-
term development without further recourse to World Bank financing and 
until they have reached a sufficiently advanced level of development. 
The World Bank uses a per capita income threshold (currently $7,185) as 
a trigger for discussions on graduation. I believe that the World Bank 
should be having serious discussions with more borrowers about 
graduation. As countries approach the threshold for graduation, I will 
also encourage the World Bank to be more selective about which sectors 
it supports in those countries, with a focus on those that have the 
greatest impact on poverty reduction and have a global or regional 
public good aspect associated with them.

 Responses of Charles C. Adams, Jr., Nominated to be Ambassador to the 
    Republic of Finland, to Questions from Members of the Committee

                ambassador-designate adams's responses 
                   to questions from senator shaheen
    Question. If confirmed as the next Ambassador to the Republic of 
Finland, will you commit to making the issue of gender equality and the 
particular challenge in Finland of gender-based violence a priority for 
this bilateral relationship?

    Answer. If confirmed as the next Ambassador to the Republic of 
Finland, I commit to continuing our efforts to enhance human rights, 
including with regard to gender equality. With the use of important 
tools such as the annual Human Rights Report, and with the assistance 
of the State Department's Office of Global Women's Issues, I will 
continue to partner with Finland on eliminating gender inequality 
globally as well as engage with Finland on addressing gender-based 
violence at home. I am encouraged by our ongoing partnership with 
Finland, which has been the lead on U.N. Security Council Resolution 
1325 implementation in Afghanistan. In this role, Finland has helped 
promote the importance of women in peace and security. The Finnish 
Government has also recognized the problem of gender-based violence 
domestically and adopted a 5-year, multisectoral action plan to combat 
violence against women. In addition, Finland recently passed 
legislation, effective January 1, 2015, outlining the government's 
assistance to and responsibility for safe houses and shelters for 
victims of domestic violence. If confirmed, my team and I will continue 
to support efforts to address the problem of gender-based violence.

                               __________



                              NOMINATIONS

                              ----------                              


                       WEDNESDAY, MARCH 25, 2015

                                       U.S. Senate,
                            Committee on Foreign Relations,
                                                    Washington, DC.
                              ----------                              

Paul A. Folmsbee, of Oklahoma, to be Ambassador of the United 
        States of America to the Republic of Mali
Mary Catherine Phee, of Illinois, to be Ambassador of the 
        United States of America to the Republic of South Sudan
Cassandra Q. Butts, of the District of Columbia, to be 
        Ambassador of the United States of America to the 
        Commonwealth of the Bahamas
Katherine Simonds Dhanani, of Florida, to be Ambassador of the 
        United States of America to the Federal Republic of 
        Somalia
                              ----------                              

    The committee met, pursuant to notice, at 2:16 p.m., in 
room SD-419, Dirksen Senate Office Building, Hon. Jeff Flake 
presiding.
    Present: Senators Flake and Markey.

             OPENING STATEMENT OF HON. JEFF FLAKE, 
                   U.S. SENATOR FROM ARIZONA

    Senator Flake. The Senate Foreign Relations Committee will 
come to order. I would like to welcome all of you here, both 
the nominees and family members.
    We have talked and been able to meet all of you in my 
office. Thank you for coming by.
    As you know, I have long had an interest in Africa, having 
spent some time there. Last week, Ed and I presided over a 
hearing, a subcommittee hearing examining the economic policies 
or the promises that exist on the continent, particularly after 
the summit we had, the Leader summit last August. That was our 
first hearing in the Congress, and we will have many more.
    But today, we are going to hear from nominees to Mali, 
South Sudan, and Somalia, and we will look at some of sub-
Saharan Africa's most serious challenges. We also have the 
nominee for the Bahamas as well. I am grateful that she is 
here.
    After seeing positive developments in 2013, Mali's security 
and governance climate has continued to deteriorate. And 
despite international pressure and ongoing mediation efforts, 
the conflict of South Sudan has continued for over a year, 
costing more than 10,000 lives, displacing more than 2 million 
people, causing millions more to require humanitarian 
assistance.
    The administration's decision to nominate an Ambassador in 
Somalia offers at least a glimmer of hope for movement on the 
security and governance front. I look forward to hearing more 
about the potential for progress, as well as the hurdles that 
exist, when we establish a presence in Mogadishu.
    We are also considering a nominee, as I mentioned, for the 
Bahamas. It is an important regional neighbor, and I look 
forward to thoughts on economic progress and partnership with 
us here.
    Thank you all for your time and for your expertise. I look 
forward to your testimony.
    With that, I recognize Senator Markey.

              STATEMENT OF HON. EDWARD J. MARKEY, 
                U.S. SENATOR FROM MASSACHUSETTS

    Senator Markey. Thank you, Mr. Chairman, so much, and I 
very much appreciate you holding this very important hearing.
    Three of the nominees that we are going to be talking 
about, and to, today, and hoping to be confirmed as U.S. 
Ambassadors, are looking at three of the most challenging 
countries in sub-Saharan Government: Mali, South Sudan, and 
Somalia. The fourth is seeking confirmation to the Bahamas, a 
place that most likely conjures up thoughts of vacation, but in 
truth it is a critical country on the United States third 
border in the Caribbean.
    All four of our nominees have distinguished records of 
public service that will continue as U.S. Ambassadors when they 
are confirmed.
    And I thank you, Mr. Chairman, for having this hearing.
    Senator Flake. Thank you, Senator Markey. Our first nominee 
is Paul Folmsbee. Mr. Folmsbee is a career member of the Senior 
Foreign Service. He currently serves as executive director of 
the State Department's Bureau of African Affairs. Previously, 
Mr. Folmsbee served in a number of challenging assignments, 
including senior civilian representative for the Regional 
Command East Afghanistan; principal officer at the U.S. 
consulate in Mumbai, India; the Provincial Reconstruction team 
leader in Baghdad; and the director of international narcotics 
in law enforcement affairs at our Embassy in Pakistan.
    Mr. Folsmbee has also served in a number of Africa 
assignments, including Gabon, Tanzania, Kenya. Mr. Folmsbee 
earned a B.A. in political science from Tabor College in 
Hillsboro, Kansas, and an M.A. in social anthropology from the 
University of Oklahoma in Norman, OK.
    Our second nominee is Mary Catherine Phee. Ms. Phee is a 
career member of the Senior Foreign Service, currently serves 
as chief of staff in the Office of the Special Envoy for Sudan 
and South Sudan. From 2011 to 2014, Ms. Phee served as deputy 
chief of staff in Ethiopia. She was previously director for 
Iraq at the National Security Council, the regional affairs 
coordinator at the U.S. Embassy in Rome, and counselor for 
political affairs at the U.S. mission at the U.N. in New York.
    Ms. Phee has held multiple positions focusing on Iraq and 
other countries in the Middle East. And before joining the 
Foreign Service, Ms. Phee also worked at Development 
Alternatives, a Bethesda, MD, company, and as deputy press 
secretary for Senator Daniel Patrick Moynihan. Ms. Phee earned 
a B.A. at Indiana University and a master's degree from the 
Fletcher School of Law and Diplomacy.
    Our third nominee is Cassandra Butts. Ms. Butts is 
currently a senior adviser to the CEO at the Millennium 
Challenge Corporation. Previously, she served at the White 
House as deputy counsel to the President, general counsel in 
the Office of the President Elect, and general counsel for the 
Obama transition project. Prior to these nominations, Ms. Butts 
was the senior vice president for domestic policy at the Center 
for American Progress, and counsel and policy director for 
Representative Richard Gephardt in the United States House of 
Representatives.
    She earned a B.A. from the University of North Carolina at 
Chapel Hill, NC, and a J.D. from Harvard Law School.
    Our fourth nominee is Katherine Simonds Dhanani. Ms. 
Dhanani is a career Foreign Service officer and currently 
serves as director of the Office of Regional and Security 
Affairs in the State Department's Bureau of African Affairs. 
Previously, Ms. Dhanani served as consul general at the U.S. 
consulate in India. She has held numerous assignments in 
Africa, including deputy chief of mission at the U.S. Embassy 
in Harare, Zimbabwe, and at the U.S. Embassy in Gabon. Prior to 
Gabon, she was political and economic section chief at the U.S. 
Embassy in Zambia, and economic section chief in the DRC.
    Ms. Dhanani earned a B.A. from Kenyon College in Gambier, 
OH, and an M.A. from MIT.
    So thank you all for being here. Thank you for sharing your 
thoughts and viewpoints. I am sure you will want to introduce 
family members as well, and we appreciate them for the 
sacrifice that they make as well as you serve.
    We would appreciate it if you could keep your testimony to 
about 5 minutes, and then we can have time for questions to be 
asked.
    So we will recognize Mr. Folmsbee first, and thank you 
again for being here.

           STATEMENT OF PAUL A. FOLMSBEE, NOMINATED 
            TO BE AMBASSADOR TO THE REPUBLIC OF MALI

    Mr. Folmsbee. Thank you, Mr. Chairman, Ranking Member 
Markey, and distinguished members of the committee. I am 
honored to come before you as President Obama's nominee to be 
the next United States Ambassador to Mali. I deeply appreciate 
the confidence and trust the President and Secretary of State 
have shown in nominating me for this position.
    I am supported here today by my friends and colleagues from 
the State Department's Bureau of African Affairs, as well as my 
friends from USAID. In fact, my former PRT deputy leader from 
Baghdad is actually sitting behind me, Jeff Bakken. He is a 
good man.
    My wife, Angie Chin, is also a U.S. diplomat and is 
probably watching us from Bangkok, Thailand, right about now. 
Unfortunately, she could not be here today.
    My career in the Foreign Service began in 1987 and has led 
to me to assignments all over the world. The bulk of my 
assignments have been in developing countries, including Kenya, 
Haiti, Gabon, and Tanzania. In Iraq in 2007, I embedded with 
the 2/82nd Airborne, and ran a Provincial Reconstruction Team 
in Sadr City and Adhamiyah in downtown Baghdad. In Afghanistan 
in 2011, I embedded with the 1st Cavalry as a senior civilian 
rep for Regional Command East, where we worked on expanding 
governance and economic development programs.
    If confirmed, I would draw upon these experiences and many 
others to deepen U.S.-Mali ties, as we continue to work toward 
our mutual goals of combating extremism, strengthening 
democratic governance, and fostering inclusive economic growth.
    Mali continues to emerge from the most serious security, 
political, and development crisis it has faced since 
independence. It is rebuilding its social, economic, and 
governance institutions following the March 2012 coup d'etat 
and subsequent takeover of parts of northern Mali by 
extremists.
    Poverty both exacerbates Mali's conflicts and underscores 
its capacity challenges. Mali is ranked 176th of the 187 
nations in the United Nations 2014 Human Development Index. In 
addition, the recent coup and the events that followed revealed 
the fragility of Mali's government institutions.
    Despite these challenges, Mali peacefully elected a 
President and National Assembly in 2013. The new government has 
made national reconciliation a top priority, and donors are now 
engaging with the country. It is within this context U.S. 
engagement will be critical as we foster democratic values, 
promote good governance, and engender peace and security.
    U.S. assistance programs will continue to increase access 
to education and health services, improve nutrition and 
sanitation, strengthen Malian food security, and facilitate 
inclusive economic growth. One of the key strategies for 
deepening economic growth is expanding the resiliency of poor 
communities so they will not be vulnerable to the shocks of 
extreme weather and conflict.
    Security and stability remain a major challenge. The United 
Nations Multidimensional Integrated Stabilization Mission, 
which is quite a mouthful, we call it MINUSMA, was established 
by the Security Council Resolution 2100 in April of 2013 to 
support the stabilization of the country and to carry out a 
number of security-related tasks.
    Our government continues to fully support that effort by 
providing training, equipment, and intelligence. The success of 
this mission is critical to the long-term stability of the 
country.
    Another key objective is to aid in the reformation of the 
Malian security sector by supporting institutions that can 
manage internal and external security threats, contribute to 
national and regional stability while adhering to civilian 
authority and respect international law and human rights norms.
    While there are a number of areas in the security sector 
that require investment, the near-to-medium-term priority for 
U.S. assistance are those activities that will refine the 
national strategy, repair civilian-military relations, improve 
access to justice in the north, and encourage the legislature 
and civil society stakeholders to hold security services 
accountable.
    The government has engaged in internationally supported 
efforts to advance peace talks with the northern armed groups. 
These talks are ongoing, and their positive outcome is far from 
ensured.
    The U.S. Government will continue to participate in these 
negotiations as an observer and will also continue to look for 
opportunities to support a balanced and peaceful way forward.
    The outbreak of the Ebola virus in West Africa, and the 
threat it represented to Mali, punctuated the need for urgent 
cooperation on health matters. Early containment of the 
outbreak was a major priority for the Government of Mali, 
international partners, and the United States. Fortunately, the 
threat was successfully contained, aided in part by direct U.S. 
assistance from the State Department, the National Institutes 
of Health, CDC, and USAID.
    Mr. Chairman and members of the committee, if confirmed, I 
will look to you for counsel and support to ensure that our 
bilateral relationship remains firmly rooted in our shared 
vision of a democratic and prosperous Mali.
    Thank you for inviting me to appear before you today. I 
would be pleased to answer any questions you may have.
    [The prepared statement of Mr. Folmsbee follows:]

                 Prepared Statement of Paul A. Folmsbee

    Mr. Chairman, Ranking Member Markey, and distinguished members of 
the committee, I am honored to come before you as President Obama's 
nominee to be the next United States Ambassador to Mali. I deeply 
appreciate the confidence and trust the President and Secretary of 
State have shown in nominating me for this position.
    I am supported here today by my friends and colleagues from the 
State Department's Bureau of African Affairs and USAID. My wife 
Angelika Chin is also a U.S. diplomat and is serving at our Embassy in 
Bangkok, Thailand. Unfortunately she could not be here today.
    My career in the Foreign Service began in 1987 and has led me to 
assignments all over the world. The bulk of my assignments have been to 
developing countries including Kenya, Haiti, Gabon, and Tanzania. In 
Iraq, in 2007, I embedded with the 2/82 Airborne and ran a Provincial 
Reconstruction Team in Sadr City and Adhamiya in downtown Baghdad. In 
Afghanistan in 2011, I embedded with the 1st Cavalry as the Senior 
Civilian Representative for Regional Command East and worked on 
expanding governance and economic development programs. If confirmed, I 
would draw upon these experiences and many others to deepen U.S.-Mali 
ties as we continue to work toward our mutual goals of combating 
extremism, strengthening democratic governance and fostering inclusive 
economic growth.
    Mali continues to emerge from the most serious security, political, 
and development crises it has faced since independence. It is 
rebuilding its social, economic, and governance institutions following 
a rebellion in the north, the March 2012 coup d'etat, and the 
subsequent takeover of parts of northern Mali by extremists. Poverty 
both exacerbates Mali's conflicts and underscores its capacity 
challenges. Mali is ranked 176th of the 187 nations in the United 
Nation's 2014 Human Development Index. In addition, conflict with 
northern groups, the recent coup and the events that followed revealed 
the fragility of Mali's government institutions. Despite those 
challenges, Mali peacefully elected a President and National Assembly 
in 2013. The new government has made national reconciliation a top 
priority and donors are engaging with the country. It is within this 
context that U.S. engagement will be critical as we foster democratic 
values, promote good governance and engender peace and security. U.S. 
assistance programs will continue to increase access to education and 
health services, improve nutrition and sanitation, strengthen Malians' 
food security, and facilitate inclusive economic growth. One of the key 
strategies for deepening economic growth is expanding the resiliency of 
poor communities so that they will not be vulnerable to the shocks of 
extreme weather and conflict.
    Security and stability remain a major challenge. The United Nations 
Multidimensional Integrated Stabilization Mission in Mali (MINUSMA) was 
established by Security Council Resolution 2100 in April of 2013 to 
support the stabilization of the country and to carry out a number of 
security-related tasks. Our government continues to fully support that 
effort by providing training, equipment and intelligence. The success 
of this mission is critical to the long-term stability of the country.
    Another key objective is to aid in the reformation of the Malian 
security sector by supporting institutions that can manage internal and 
external security threats, contribute to national and regional 
stability while adhering to civilian authority, and respect 
international law and human rights norms. While there are a number of 
areas in the security sector that require investment, the near- to 
medium-term priority for U.S. assistance are those activities that will 
refine the national security strategy, repair civilian-military 
relations, improve access to justice in the north, and encourage the 
legislature and civil society stakeholders to hold security services 
accountable.
    The government has engaged in internationally supported efforts to 
advance peace talks with the northern armed groups. These talks are 
ongoing and their positive outcome is far from assured. The U.S. 
Government will continue to participate in these negotiations as an 
observer and will also continue to look for opportunities to support a 
balanced and peaceful way forward.
    The outbreak of the Ebola virus in West Africa and the threat it 
represented to Mali punctuated the need for urgent cooperation on 
health matters. Early containment of the outbreak was a major priority 
for both the Government of Mali, international partners, and the United 
States. Fortunately, the threat was successfully contained, aided in 
part by direct U.S. assistance from the State Department, the National 
Institutes of Health, Centers for Disease Control and Prevention and 
U.S. Agency for International Development.
    Mr. Chairman and members of the committee, if confirmed, I will 
look to you for counsel and support to ensure that our bilateral 
relationship remains firmly rooted in our shared vision of a democratic 
and prosperous Mali. Thank you for inviting me to appear before you 
today. I would be pleased to answer any questions you may have.

    Senator Flake. Thank you.
    Ms. Phee.

          STATEMENT OF MARY CATHERINE PHEE, NOMINATED 
        TO BE AMBASSADOR TO THE REPUBLIC OF SOUTH SUDAN

    Ms. Phee. Thank you, Mr. Chairman, Ranking Member Markey, 
distinguished members of the committee. I am honored to appear 
before you today as the President's nominee to be the United 
States Ambassador to the Republic of South Sudan.
    I would like to thank President Obama and Secretary Kerry 
for the confidence they have placed in me. If confirmed, I will 
look forward to working with this committee.
    I would also like to thank my family, friends, and 
colleagues who have generously shared encouragement, support, 
and laughter throughout my career. I could not undertake these 
challenges without them. And I would like to draw special 
attention to my sister, Amy, who is here today.
    I am deeply proud of the opportunity to serve our Nation 
and to apply my experience in tough situations to advance 
American interests and values.
    Mr. Chairman, I know you and the members of the committee 
share in the profound disappointment many of us experienced in 
December 2013 when the political process in South Sudan broke 
down, and the country's leaders resorted to violence to resolve 
their disputes. And as you noted, this has resulted in a 
significant loss of life and nearly 2 million people have been 
displaced inside and outside of South Sudan. More than 4 
million people now need emergency humanitarian assistance, and 
the country's fledgling economy is at a standstill.
    Our disappointment is rooted in the special relationship 
that we in the United States, including Congress, successive 
administrations, and the American people, forged with the 
people of South Sudan during their long civil wars and struggle 
for self-determination. We had high hopes that the 2005 
Comprehensive Peace Agreement, which led to independence in 
2011, offered a permanent end to war. But we were not blind to 
the challenges of overcoming decades of inadequate government, 
security, and development, and, with our international 
partners, sought to avert a breakdown of the fragile political 
order.
    Then and now, our core interests remain strengthening this 
young democratic state and promoting internal stability and 
regional peace.
    In collaboration with our Troika partners, which are the 
United Kingdom and Norway, we are backing negotiations to 
convince President Salva Kiir and former Vice President Riek 
Machar to commit to a durable cease-fire and to agree to a 
transitional government of national unity. The negotiating 
effort has been led by the group of countries neighboring South 
Sudan known as the Intergovernmental Authority on Development, 
or, more easily, IGAD. To the frustration of all, to date, the 
parties have resisted compromise.
    The current IGAD chairman, Ethiopian Prime Minister 
Hailemariam Desalegn, announced March 6 that he would reform 
the peace process to formally include the African Union, the 
Troika, the United Nations, the EU, and China. We support this 
approach.
    To be sustainable, we believe the final peace agreement 
must respect the desire of the people of South Sudan for 
justice and accountability, as well as reconciliation and 
healing.
    We have called for the prompt release of the official 
report from the African Union's Commission of Inquiry, which 
was charged with investigating human rights violations and 
other abuses during the armed conflict. To advance the peace 
process, the U.N. Security Council on March 3 unanimously 
adopted a resolution we introduced that established a targeted 
sanctions regime and proposed an arms embargo that could be 
imposed should the South Sudanese leaders fail to respond to 
the mediation.
    To address the humanitarian impact, we have provided more 
than $994 million in emergency humanitarian assistance, 
including help for internally displaced persons and refugees in 
neighboring countries. This assistance has helped stave off 
famine and provided lifesaving services such as water, 
sanitation, and health care.
    Mr. Chairman, if confirmed, I will work with the leaders 
and the people of South Sudan to help end the conflict and 
begin the rebuilding. I will provide vigorous support to the 
ongoing effort to improve the humanitarian situation.
    Through our partnership, we can help South Sudan begin to 
recover from this devastating setback, and regain the 
opportunities present at independence.
    Finally, Mr. Chairman, I assure you that, if confirmed, I 
will be proud to carry on the diplomatic tradition of ensuring 
the safety and security of American citizens abroad while 
focusing on the welfare of the American and South Sudanese 
staff of Embassy Juba.
    Mr. Chairman, Ranking Member Markey, I thank you for the 
honor to appear before you today, and I welcome your questions.
    [The prepared statement of Ms. Phee follows:]

               Prepared Statement of Mary Catherine Phee

    Mr. Chairman, Ranking Member Markey, members of the committee, I am 
honored to appear before you as the President's nominee to be the 
United States Ambassador to the Republic of South Sudan. I would like 
to thank President Obama and Secretary Kerry for the confidence they 
have placed in me. If confirmed, I will look forward to working with 
this committee. I would also like to thank my family, friends, and 
colleagues who have generously shared encouragement, support, and 
laughter throughout my career. I could not undertake these challenges 
without them. I am deeply proud of the opportunity to serve our Nation 
and to apply my experience in tough situations to advance American 
interests.
    Mr. Chairman, I know you and the members of the committee share in 
the profound disappointment many of us experienced in December 2013 
when the political process in South Sudan broke down and the country's 
leaders resorted to violence to resolve their disputes. This breakdown 
has generated a senseless conflict. There has been a significant loss 
of life and nearly 2 million people have been displaced inside and 
outside of South Sudan. More than 4 million people now need emergency 
humanitarian assistance and the country's fledgling economy is at a 
standstill.
    Our disappointment is rooted in the special relationship that we in 
the United States--including Congress, successive administrations, and 
the American people--forged with the people of South Sudan during their 
long civil wars and struggle for self-determination. We had high hopes 
that the 2005 Comprehensive Peace Agreement, which led to independence 
in 2011, offered a permanent end to war in South Sudan. But we were not 
blind to the challenges of overcoming decades of inadequate governance, 
development, and security, and, with our international partners, sought 
to avert a breakdown of the fragile political order. Then and now, our 
core interests remain strengthening this young democratic state and 
promoting internal stability and regional peace.
    In collaboration with our Troika partners, which are the United 
Kingdom and Norway, we are backing negotiations to convince President 
Salva Kiir and former Vice President Riek Machar to commit to a durable 
cease-fire and to agree to a transitional government of national unity. 
The negotiating effort has been led by the group of countries 
neighboring South Sudan known as the Intergovernmental Authority on 
Development, or IGAD. To the frustration of all, to date the parties 
have resisted compromise. The current IGAD Chairman, Ethiopian Prime 
Minister Hailemariam Desalegn, announced March 6 that he would reform 
the peace process to include the African Union, the Troika, the U.N., 
the EU, and China. We support this approach.
    To be sustainable, we believe the final peace agreement must 
respect the desire of the people of South Sudan for justice and 
accountability, as well as reconciliation and healing. We have called 
for the prompt release of the official report from the African Union's 
Commission of Inquiry, which was charged with investigating human 
rights violations and other abuses during the armed conflict.
    To advance the peace process, the U.N. Security Council on March 3 
unanimously adopted a resolution we introduced that established a 
targeted sanctions regime and proposed an arms embargo that could be 
imposed should the South Sudanese leaders fail to respond to the 
mediation. The resolution demonstrates that the international community 
condemns this conflict and seeks a prompt, negotiated end to the 
crisis.
    To address the humanitarian impact on the people of South Sudan, we 
have provided more than $994 million in emergency humanitarian 
assistance since the conflict began, including help for internally 
displaced persons and refugees in neighboring countries. This 
assistance has helped stave off famine and provided lifesaving 
services, such as water, sanitation, and health care.
    Mr. Chairman, if confirmed, I will work with the leaders and the 
people of South Sudan to help end the conflict and begin the 
rebuilding. I will provide vigorous support to the ongoing effort to 
improve the humanitarian situation. Through our partnership we can help 
South Sudan begin to recover from this devastating setback and regain 
the opportunities present at independence.
    Finally, Mr. Chairman, I assure you that, if confirmed, I will be 
proud to carry on the diplomatic tradition of ensuring the safety and 
security of American citizens abroad, while focusing on the welfare of 
the American and South Sudanese staff members of Embassy Juba.
    Mr. Chairman and Ranking Member Markey, I thank you for the honor 
to appear before you today and I welcome your questions.

    Senator Flake. Thank you.
    Ms. Butts.

STATEMENT OF CASSANDRA Q. BUTTS, NOMINATED TO BE AMBASSADOR TO 
                THE COMMONWEALTH OF THE BAHAMAS

    Ms. Butts. Thank you, Mr. Chairman, Mr. Ranking Member. I 
appreciate the opportunity to appear before you today as 
President Obama's nominee to be our next Ambassador to the 
Commonwealth of the Bahamas.
    I am profoundly grateful for the honor the President has 
bestowed upon me, and for the confidence shown in me by 
Secretary Kerry, as I look to assume this new assignment, if 
confirmed.
    I would like to take the opportunity to introduce my 
sister, Deidra Abbott, who is here today, representing my 
family. My family has been a wellspring of support for me, and 
I would not be here today but for their support, their love, 
and their belief in me.
    I believe my experience as a lawyer and a policy adviser, 
and my service to my country in the executive and legislative 
branches, have well-prepared me for the duties of Ambassador to 
the Commonwealth of the Bahamas. Having worked on some of the 
major legal policy issues of our time, including my most recent 
experience in international development at the Millennium 
Challenge Corporation, I have always sought solutions 
consistent with the values of our great Nation. I understand 
that leading with our values is a basis for finding lasting 
policy solutions and building strong partnerships at home and 
abroad.
    If the Senate confirms me, I would bring those experiences 
grounded in my strong belief in equality, justice, and 
compassion to the post of the Ambassador to the Commonwealth of 
the Bahamas.
    Through close political and economic and cultural ties, the 
United States and the Bahamas have forged a strong bilateral 
relationship that has served both countries quite well. 
Bahamians regularly travel to the United States to visit 
friends and family and to conduct business, and approximately 6 
million U.S. citizens travel to the Bahamas annually.
    The proximity of the Bahamas to the United Sates 
inextricably links our country's national security. Together, 
we are confronting shared challenges, such as illicit 
trafficking, including narcotics, arms, and people, as well as 
bolstering the rule of law.
    If confirmed, my first and foremost priority will be to 
ensure the safety and security of U.S. citizens living in or 
visiting the Bahamas, as well as the Turks and Caicos Islands, 
which are included among Embassy Nassau's consular oversight.
    I will work closely with the Bahamian authorities, 
community groups, and the entire U.S. mission, including the 
U.S. law enforcement officials, under Chief of Mission 
Authority, to promote innovative, effective, and whole-of-
government-based efforts to reduce crime rates and other 
illegal activities. I will also continue to promote greater 
economic ties and growth, including exploring ways to make the 
Bahamas a more attractive place in which to invest and do 
business through the development and enforcement of stable and 
transparent regulations, as well as procurement and investment 
procedures.
    If confirmed, I will work to assist the Bahamas in 
protecting and preserving for future generations the incredible 
natural beauty that makes it the vacation destination of choice 
for so many people, including by expanding marine protected 
areas. As part of the same effort, I will encourage the Bahamas 
to adopt cleaner technologies and build strong and resilient 
energy markets, which will not only provide a more secure and 
sustainable clean energy future in economic growth, but also 
limit the effects of greenhouse gas emissions.
    I also will make working with our Bahamian partners on 
human rights issues a priority by seeking to further gender 
equality; to expand opportunities for disenfranchised youth; 
and to encourage Bahamian officials to adopt fair, humane, and 
transparent practices related to irregular migrants, including 
improved access to refugee status determinations.
    Expanding educational exchanges is one of the best ways to 
deepen the already existing cultural and historic ties between 
the United States and the Bahamas. At present, approximately 
1,700 students from the Bahamas study in the United States, and 
more than 750 students from the United States study in the 
Bahamas. If confirmed, I will seek to increase levels of 
educational exchange between our two countries, including 
through enhancing existing partnerships and building new ones.
    While geography and history have forged strong bonds 
between our countries, the Bahamas also maintains close 
economic ties with many other nations. As the world economy 
continues to rebound, the Bahamas key tourism and hospitality 
sectors have seen increases in Asian investment. We do not see 
foreign economic and commercial links to the Bahamas as a 
threat to U.S. interests. We strongly believe that the American 
companies can successfully compete with anybody in the world 
when transparent regulations and practices with steadfast 
respect for the rule of law prevail.
    The United States has not had an ambassador in Nassau for 
over 4 years, but we have strong leadership and staff at U.S. 
Embassy the Bahamas continuing the important work of the 
mission. Still, the value of having a confirmed U.S. Ambassador 
to advance U.S. interests cannot be overstated.
    If confirmed, I will strive to further the good work of our 
Nassau mission and strengthen the close and productive 
bilateral relationship.
    In closing, I am confident that I have the experience and 
imagination and the energy to lead our bilateral relationship 
with the people and the Government of the Commonwealth of the 
Bahamas. I thank you, again, Mr. Chairman, and Mr. Ranking 
Member Markey, and I look forward to answering any questions 
you may have.
    [The prepared statement of Ms. Butts follows:]

                Prepared Statement of Cassandra Q. Butts

    Mr. Chairman, Ranking Member, and members of the committee, thank 
you for the opportunity to appear before you today as President Obama's 
nominee to be the next Ambassador to the Commonwealth of the Bahamas. I 
am profoundly grateful for the honor the President has bestowed upon me 
and for the confidence shown in me by Secretary Kerry as I look to take 
up this assignment, if confirmed.
    Please allow me to introduce the members of my family who are here 
today. My family has been a wellspring of support. I am here today 
because of their love and support and because of their dedication and 
belief in me.
    I believe my experience as a lawyer and policy advisor and my 
service to my country in the executive and legislative branches have 
well prepared me for the duties of Ambassador to the Commonwealth of 
the Bahamas. Having worked on some of the major legal and policy issues 
of our time, including my most recent experience in international 
development at the Millennium Challenge Corporation, I have always 
sought solutions consistent with the values of our great Nation. I 
understand that leading with our values is the basis for finding 
lasting policy solutions and building strong partnerships at home and 
abroad. If the Senate confirms me, I would bring those experiences, 
grounded in my strong belief in equality, justice, and compassion, to 
the post of Ambassador to the Commonwealth of the Bahamas.
    Through close political, economic, and cultural ties, the United 
States and the Bahamas have forged a strong bilateral relationship that 
has served both countries well. Bahamians regularly travel to the 
United States to visit friends and family and to conduct business. And 
approximately 6 million U.S. citizens travel to the Bahamas annually. 
The proximity of the Bahamas to the United States inextricably links 
our countries' national security. Together we are confronting shared 
challenges such as illicit trafficking, including in narcotics, arms, 
and people, as well as bolstering the rule of law.
    If confirmed, my first and foremost priority will be to ensure the 
safety and security of U.S. citizens living in or visiting the Bahamas, 
as well as the Turks and Caicos Islands, which are included under 
Embassy Nassau's consular oversight. I will work closely with Bahamian 
authorities, community groups, and the entire U.S. mission, including 
U.S. law enforcement officials under Chief of Mission authority, to 
promote innovative, effective, and whole-of-government based efforts to 
reduce crime rates and other illegal activities. I also will continue 
to promote greater economic ties and growth, including exploring ways 
to make the Bahamas a more attractive place in which to invest and do 
business through the development and enforcement of stable and 
transparent regulations as well as procurement and investment 
procedures.
    If confirmed, I will work to assist the Bahamas in protecting and 
preserving for future generations the incredible natural beauty that 
makes it the vacation destination of choice for so many people, 
including by expanding marine protected areas. As part of this same 
effort, I will encourage the Bahamas to adopt cleaner technologies and 
build strong and resilient energy markets, which will not only provide 
a more secure and sustainable clean energy future and economic growth, 
but also limit the effects of greenhouse gas emissions.
    I also will make working with our Bahamian partners on human rights 
issues a priority by seeking to further gender equality; to expand 
opportunities for disenfranchised youth; and to encourage Bahamian 
officials to adopt fair, humane, and transparent practices related to 
irregular migrants, including improved access to refugee status 
determinations.
    Expanding educational exchanges is one of the best ways to deepen 
the already existing cultural and historical ties between the United 
States and the Bahamas. At present, approximately 1,700 students from 
the Bahamas study in the United States, and more than 750 students from 
the United States study in the Bahamas. If confirmed, I will seek to 
increase levels of educational exchange between our two countries, 
including through enhancing existing partnerships and the building of 
new ones.
    While geography and history have forged strong bonds between our 
countries, the Bahamas also maintains close economic ties with many 
other nations. As the world economy continues to rebound, the Bahamas' 
key tourism and hospitality sectors have seen increases in Asian 
investment. We do not see foreign economic and commercial links to the 
Bahamas as a threat to U.S. interests. We strongly believe that 
American companies can successfully compete with anybody in the world 
when transparent regulations and practices and steadfast respect for 
the rule of law prevail.
    The United States has not had an ambassador in Nassau for over 4 
years, but we have had strong leadership and staff at the U.S. Embassy 
in the Bahamas continuing the important work of the mission. Still, the 
value of having a confirmed U.S. ambassador to advance U.S. interests 
cannot be overstated. If confirmed, I will strive to further the good 
work of our Nassau mission and strengthen a close and productive 
bilateral relationship.
    In closing, I am confident that I have the experience, imagination, 
and energy to lead our bilateral relationship with the people and the 
Government of the Commonwealth of the Bahamas. While at the Millennium 
Challenge Corporation, I have seen firsthand the important work carried 
out by our ambassadors and their teams as they engage and advocate for 
U.S. policy goals and objectives. If confirmed, I pledge to uphold the 
tradition and high standards of public service expected of a U.S. 
ambassador. I look forward to the opportunity to continue to serve my 
country.
    Mr. Chairman, Ranking Member, and members of the committee, thank 
you for the opportunity to appear before you today. I welcome your 
questions.

    Senator Flake. Thank you.
    Ms. Dhanani.

    STATEMENT OF KATHERINE SIMONDS DHANANI, NOMINATED TO BE 
         AMBASSADOR TO THE FEDERAL REPUBLIC OF SOMALIA

    Ms. Dhanani. Mr. Chairman, Ranking Member Markey, I am 
honored to appear before you today to be considered for the 
position of United States Ambassador to the Federal Republic of 
Somalia.
    I am deeply grateful to President Obama and Secretary Kerry 
for the confidence in me they have shown with this nomination.
    If confirmed, I pledge to work with you to advance our 
interests by promoting a unified and peaceful Somalia with a 
stable and representative government that can defend its 
territory, foster economic development, and defend human 
rights.
    Mr. Chairman, please allow me at this time to introduce my 
husband, Azim Dhanani. His support has meant everything to me 
as he accompanied me to assignments around the globe. And if 
confirmed, I will continue to rely on him as I take up my new 
responsibilities.
    This is a critical time in our engagement with Somalia. 
Decades of conflict, famine, and oppression led many to label 
Somalia a failed state. Today, Somalis are proving those 
pessimists wrong. There is progress in Somalia, measured, but 
real progress on security, on economic development, and on the 
establishment of representative government.
    Just over 2 years ago, the United States officially 
recognized the Federal Government of Somalia. Since that time, 
we have been working closely with the Somalis as they rebuild 
their state and lay a foundation for the future.
    The decision to nominate the first U.S. Ambassador to 
Somalia in over 2 decades was taken in recognition of our 
deepening relationship and our conviction that Somalia is on a 
path that will bring better times. Establishment of a permanent 
diplomatic presence in Mogadishu will represent the culmination 
of this recognition process, but there is no fixed timeline for 
achieving this objective.
    If confirmed, I will carefully monitor the security 
environment in Somalia, as I seek to advance our diplomatic 
objectives with no higher priority than my responsibility for 
the security of personnel under my charge. U.S. interests in 
Somalia are clear, just as the collapse of Somalia was a strain 
on the region, stability, prosperity, and peace in Somalia will 
bolster positive trends in economic and democratic development 
in Africa.
    Violent extremists exploited the past failure of governance 
in Somalia to our and Somali's detriment.
    We have a strong humanitarian interest in easing the 
suffering of 2 million refugees and internally displaced 
persons, in reducing the food insecurity that leaves Somalia 
vulnerable to famine, and in addressing the failures that place 
Somalia at the bottom of the list on so many human development 
indicators.
    If confirmed, I will keep these U.S. interests firmly in 
mind as I lead U.S. engagement with the Somali Government, the 
Somali people, and the international partners who share our 
commitment to seeing Somalia succeed.
    Mr. Chairman, in my written statement, I outlined the U.S. 
strategy on Somalia, which was submitted to Congress last 
summer. In the interests of time, I will not repeat that, but 
in sum, U.S. policy revolves around three elements: security, 
the political process, and development. Gains in each reinforce 
and must keep pace with the others.
    Mr. Chairman, Somalia is moving in the right direction but 
more progress is needed. Somali leaders must pull together to 
build their institutions, protect their citizens, and unite 
their country. Somalia's neighbors and friends must assist in 
that effort.
    I can assure you today that, if confirmed, it will be my 
honor to restore U.S. Mission Somalia, advance U.S. interests, 
and strengthen our relationship with Somalia. And I look 
forward to the opportunity to work with the committee to 
achieve those goals.
    I also look forward to answering any questions you may 
have.
    [The prepared statement of Ms. Dhanani follows:]

               Prepared Statement of Katherine S. Dhanani

    Mr. Chairman, Ranking Member Markey, and members of the committee, 
I am honored to appear before you today to be considered for the 
position of United States Ambassador to the Federal Republic of 
Somalia. I am deeply grateful to President Obama and Secretary Kerry 
for the confidence in me they have shown through this nomination. If 
confirmed, I pledge to work with you to advance our interests by 
promoting a unified and peaceful Somalia, with a stable and 
representative government, that can defend its territory, foster 
economic development, and defend human rights.
    Mr. Chairman, please allow me at this time to introduce my husband, 
Azim Dhanani. His support has meant everything to me as he accompanied 
me to assignments around the globe, and, if confirmed, I will continue 
to rely on him as I take up my new responsibilities.
    This is a critical time in our engagement with Somalia. Decades of 
conflict, famine, and oppression led many to label Somalia a ``failed 
state.'' Today, Somalis are proving those pessimists wrong. There is 
progress in Somalia--measured but real progress--on security, on 
economic development, and on the establishment of representative 
government. Just over 2 years ago, the United States officially 
recognized the Federal Government of Somalia. Since that time, we have 
been working closely with the Somalis as they rebuild their state and 
lay a foundation for the future. The decision to nominate the first 
U.S. Ambassador to Somalia in over two decades was taken in recognition 
of our deepening relationship and our conviction that Somalia is on a 
path that will bring better times. Establishment of a permanent 
diplomatic presence in Mogadishu will represent the culmination of this 
recognition process, but there is no fixed timeline for achieving this 
objective. If confirmed, I will carefully monitor the security 
environment in Somalia as I seek to advance our diplomatic objectives, 
with no higher priority than my responsibility for the security of 
personnel under my charge.
    U.S. interests in Somalia are clear. Just as the collapse of 
Somalia was a strain on the region, stability, prosperity, and peace in 
Somalia will bolster positive trends in economic and democratic 
development in Africa. Violent extremists exploited the past failure of 
governance in Somalia, to our and Somalis' detriment. We have a strong 
humanitarian interest in easing the suffering of 2 million refugees and 
internally displaced Somalis, in reducing the food insecurity that 
leaves Somalia vulnerable to famine, and in addressing the failures 
that place Somalia at the bottom of the list on so many human 
development indicators. If confirmed, I will keep these U.S. interests 
firmly in mind as I lead U.S. engagement with the Somali Government, 
the Somali people, and the international partners who share our 
commitment to seeing Somalia succeed.
    Mr. Chairman, as referenced in the U.S. Strategy on Somalia that 
the State Department submitted to Congress last summer, and the 
subsequent January update, U.S. policy revolves around three elements: 
security, the political process, and development. On the security 
front, our top priority is degrading al-Shabaab, which has links to al-
Qaeda. Driving al-Shabaab from its remaining strongholds and 
neutralizing it as a destabilizing force are critical to open up space 
for legitimate governance and development opportunities. If confirmed 
as Chief of Mission, it will be my priority to continue our efforts to 
help our African partners to degrade 
al-Shabaab. I will continue to support the African Union Mission in 
Somalia--or AMISOM as it is most commonly known--until Somalis are 
ready and able to assume full responsibility for their own security. To 
that end, building the capacity of the Somali National Security Forces 
will be a top priority.
    In Somalia, political and security gains must reinforce and keep 
pace with one another. The Federal Government has made progress 
establishing government institutions, negotiating relationships with 
regional authorities, and supporting community stabilization. However, 
the Somali Government's institutional capacity and reach remain 
extremely limited. If confirmed, I will ensure that the United States, 
in very close coordination with our international partners, continues 
to support the Somali Government as it implements ``Vision 2016''--the 
Somali-led state-building agenda for completing a federal state-
formation process, holding a constitutional referendum, and preparing 
for democratic elections.
    As we focus on the long-term goals of establishing a sustainable 
federal system of governance, we must keep in focus the immediate needs 
of the Somali people. Tragically, Somalis continue to face a multitude 
of natural and man-made threats to their livelihoods and their lives. 
Those imperiled by al-Shabaab risk losing their land, their livestock, 
and their lives; those freed from al-Shabaab may still be in danger 
from an overall lack of security, including gender-based violence and 
interclan rivalry. Last year alone, conflict forced more than 80,000 
Somalis from their homes. The food security situation continues to 
teeter on the brink of crisis with a million or more Somalis at risk. 
If I am confirmed, U.S. efforts to help address these urgent needs will 
remain at the forefront of our engagement.
    Mr. Chairman, Somalia is moving in the right direction, but more 
progress is needed. Somali leaders must pull together to build their 
institutions, protect their citizens, and unite their country. 
Somalia's neighbors and friends must assist in that effort. I can 
assure you today that, if confirmed, it will be my honor to restore 
U.S. Mission Somalia, advance U.S. interests, and strengthen our 
relationship with Somalia, and I look forward to the opportunity to 
work with the committee to achieve those goals.

    Senator Flake. Thank you, Ms. Dhanani. I want to apologize. 
I put an ``L'' in your name at the beginning.
    Well, thank you for your testimony, all of you, and thank 
you again to the family members who are here and watching from 
afar, as well.
    Mr. Folmsbee, with regard to Mali, what is the biggest U.S. 
commercial interest that we have there?
    Mr. Folmsbee. You know, Senator, to be honest with you, 
Mali is fighting for last place in a human index factor put out 
by the United Nations. Its economy is at a low point after the 
2012 coup, and so it is very modest.
    Any kind of economic development issue, I am sure we could 
dig up some U.S. sales and that sort of thing, but it is going 
to be very limited. In reality, it is going to be development 
assistance at this point.
    Senator Flake. So commercial development not for a while, 
mostly development?
    Mr. Folmsbee. If we can hook some U.S. companies out there, 
I promise you I will personally get on it and help get them out 
there.
    Senator Flake. It is a good place to start, in that regard.
    Mr. Folmsbee. Absolutely.
    Senator Flake. Well, great.
    Ms. Phee, just yesterday it was reported that the 
legislature or the lawmakers in South Sudan voted to extend the 
President's term for another 3 years. I guess they are trying 
to confer legitimacy where they can. What role is President 
Kiir playing at present, in your view? What can he do to help 
the situation at this point?
    Ms. Phee. Thank you, Senator. We believe the best approach 
remains a peace agreement, a peace agreement that would end the 
conflict and establish a transitional government of national 
unity. And one of the key tasks of that transitional government 
would be to hold elections, permanent elections. That would be 
the best way to renew legitimacy.
    The President's Special Envoy, Ambassador Donald Booth, was 
in Juba yesterday meeting with President Kiir to continue to 
push him to make the compromises necessary to reach that peace 
agreement.
    Senator Flake. We have a long way to go, though, it is safe 
to assume.
    Ms. Phee. It is a challenging task ahead of all of us. One 
good sign is the fact that so many are unified in wanting to 
see an end to this conflict. The neighbors, the African Union, 
the United Nations, China is supporting us in this effort. So, 
hopefully, if we continue to speak with a collective voice, we 
will be able to make an impact.
    And in that regard, Mr. Chairman, I would like to thank the 
Congress for its efforts. Its statements, its meetings, its 
calls, have helped reinforce that message to the South Sudanese 
leaders that it is time to make compromise.
    Senator Flake. The countries in the region are playing a 
role through the regional organization, but Uganda has kind of 
played an outsized role there. Has that been negative or 
positive or both? I know there have been some issues with some 
of the troops.
    Ms. Phee. Thank you, Mr. Chairman. IGAD has had a tough 
time, but I think it is important to recognize that any peace 
agreement that is reached will need the support of its 
neighbors to be fully effective. So we continue to engage with 
them to work closely with them to try and help them reach the 
shared goal that we all have of seeing an end to the conflict.
    Senator Flake. You mentioned one of your roles, as it is 
for every Ambassador, to protect U.S. citizens who happen to be 
traveling there. To what extent do we have U.S. citizens--I am 
assuming it is mostly those in the Sudanese diaspora. What kind 
of visits are they on right now? I mean, are there other many 
visits going on?
    Ms. Phee. Thank you, Mr. Chairman, for raising that point. 
The State Department last issued a travel warning for South 
Sudan advising American citizens not to travel there because of 
the current conflict. We did that in January of this year. So 
you are absolutely correct. The primary set of visitors from 
the United States are members of the diaspora, who, like us, 
care very deeply about this situation and are trying to support 
a positive resolution.
    Senator Flake. Thank you.
    Ms. Butts, when we spoke in my office, you were talking 
about the pretty robust presence that we have there given our 
interest in all the travel, 6,000 visits a year. Can you 
describe how many State Department employees, roughly, and how 
many folks from Customs and other agencies of government there 
are there?
    Ms. Butts. Thank you, Mr. Chairman. Nassau is distinct as a 
post in that there are actually fewer State Department 
employees in Nassau than there are Homeland Security employees. 
Actually, there is more of a Homeland Security presence there 
from Customs and Border Protection, and a lot of the work that 
we do around immigration and trying to deter irregular 
migration. There is a significant Coast Guard presence in 
Nassau. So in total, we have a little over 200 staff with about 
20-plus on the State Department side, and about 70 for Homeland 
Security, and then other agencies are also included. We have a 
few from DOJ. We have, of course, have a military attache at 
post.
    And as you appreciate, it is an archipelago, so there are a 
number of islands. So in Freeport, for example, there is a 
significant Customs and Border Protection presence, because of 
preclearance for flights that go between the United States and 
between the Bahamas.
    So it is a distinct post in both the size and the 
composition of the staff at post.
    Senator Flake. A lot of your function will be coordinating 
then, I assume?
    Ms. Butts. It will, and that is actually one of the 
challenges of the post. Things have been working very well. The 
Charge there, Lisa Johnson, is actually with us today and has 
done a great job waiting for an ambassador.
    But the coordination is a significant part. Fortunately, 
the agencies work very well together, and we have a very, very 
robust coordinated effort in dealing with illicit trafficking 
and dealing with irregular migration.
    Senator Flake. Well, thank you.
    Ms. Dhanani, can you describe the security situation 
currently in-country? My understanding is that you will not be 
stationed in the country, initially. You will operate from 
Nairobi. We have a secured facility at the airport, I guess.
    Can you kind of describe the challenges that we have there, 
and what the timetable might be for you to actually be in-
country for more than a few days at a time, I should say?
    Ms. Dhanani. Thank you, Mr. Chairman, and you have 
identified one of the major issues that will be preoccupying 
me.
    I go to Nairobi with a mission of reestablishing a 
permanent diplomatic presence in Mogadishu, but that will 
depend on improvements in the security circumstances on the 
ground. We have adopted a policy that involves continual 
monitoring of the security environment and phased reengagement. 
The phase that we currently stand at allows us to have members 
of the U.S. Government team enter Mogadishu for periods of up 
to 2 weeks, to stay for periods as long as 2 weeks. But we can 
only have a limited presence in Mogadishu at any given time.
    And at the moment, our assessment of the security situation 
does not permit us to move beyond the airport. Clearly, we need 
to see improvement in the security situation what will allow us 
to have greater access to all of Mogadishu, as well as have 
greater numbers of people on the ground at the airport. So 
there are limitations today, but it is an enormously improved 
situation to what it was as little as 2 years ago.
    During the last year, the team in the Somalia unit and the 
U.S. Government employees made 161 trips into Somalia. They 
visited Mogadishu. They visited many of the regional capitals. 
They have really had an opportunity to substantially expand 
their engagement.
    As I am there, I will be engaged in constant risk 
monitoring, risk mitigation, and risk management as we seek to 
take advantage of improved security to move further and engage 
further in the pursuit of the objectives that we have in 
Somalia.
    Senator Flake. A little more complicated than finding a 
real estate agent and looking for a residence then, I assume. 
Well, thank you.
    Mr. Markey.
    Senator Markey. Thank you, Mr. Chairman, very much.
    Ms. Phee, could you talk about a year later after the 
United States announced sanctions against South Sudan, in terms 
of the cooperation we are getting from the EU in ensuring the 
effectiveness of our policy?
    Ms. Phee. Thank you very much for that question.
    The resolution that was adopted earlier this month in the 
Security Council was a unanimous resolution that established a 
framework to impose international targeted sanctions. That 
unanimous resolution follows individual steps by the United 
States, where the President has used his Executive authority, 
as well as action by the EU to impose EU's targeted sanctions. 
So we are now ready to use the forum in the Security Council as 
a tool to support the peace negotiations.
    I think, in sum, I would characterize the EU posture as 
complementary to our own and adding to the collective pressure 
to reach an end to the conflict.
    Senator Markey. Ms. Dhanani, how would you characterize al-
Shabaab's relationship with al-Qaeda in all of it is 
manifestations? And how would you describe al-Shabaab's ability 
to recruit outside of its region, to further destabilize the 
area?
    Ms. Dhanani. Senator Markey, al-Shabaab has formally 
affiliated with al-Qaeda, so when we engage or consider 
engagement regarding al-Shabaab, we treat al-Shabaab as we 
would al-Qaeda.
    A very worrying aspect of the crisis in Somalia in recent 
years has been the effect that it has had on Somalia's 
neighbors. Certainly, in Kenya, in the Westgate mall attack 
last year, but also throughout the region in Uganda, Djibouti, 
and elsewhere, there have been incidents. There have been 
attacks--some successful, some unsuccessful--that have their 
roots in al-Shabaab.
    And it is for that reason that Somalia's neighbors have 
formed the bulk of the force that we are supporting as they 
seek to reverse the gains of al-Shabaab.
    Senator Markey. What is al-Shabaab's largest source of 
revenue today?
    Ms. Dhanani. My understanding, sir, Ranking Member Markey, 
is that al-Shabaab continues to rely on charcoal trade, taxes 
that they achieve through the charcoal trade, and also through 
extortion.
    They no longer control cities. They no longer control large 
areas. But they are present in various places in the country. 
Their resources are much more limited than they were when they 
controlled a large part of the country, but they still have 
access in a number of places.
    Senator Markey. Okay, thank you.
    Mr. Folmsbee, can you talk a little bit about the French 
presence in Mali, its military there, what role it is playing, 
what success it is enjoying or not enjoying? Just give us a 
little bit of an overview of the French role right now in that 
country.
    Mr. Folmsbee. Well, thank you for that question, Senator.
    The French role has been critical. The French went into 
Mali in 2013 and drove al-Qaeda out of the Northern areas. We 
have heavily supported that activity, mostly in logistics, but 
the French have done a lot of good work there. Also with 
training and setting up MINUSMA, they have also played a key 
role, although they are also assisting directly with the Malian 
Army as well, where there have been some difficulties. So they 
played a very key role.
    Senator Markey. What is it going to take for the rebels to 
agree to a peace deal, in your opinion?
    Mr. Folmsbee. Well, that is a good question. You know, I 
think the fundamental issue is going to come down to the 
government and the northern groups, led in part by MNLA, to 
agree to some terminologies relating to the devolution of 
authority and power.
    I do not know if I see the end of that just yet, but I am 
hopeful that we will get there. So I think we can hope that 
will come.
    Senator Markey. Okay, great, thank you.
    Ms. Butts, who I have known for 20 years, can you talk a 
little bit about the immigration policy in the Bahamas and the 
questions that are being raised about the barriers that are 
being erected to being able to gain citizenship and not living 
in a stateless status? Could you give your overview of what 
that situation looks like today?
    Ms. Butts. Yes, absolutely. Thank you, Ranking Member 
Markey.
    We work in a coordinated effort with the Bahamians to 
patrol both sea and surface patrols to deter irregular 
migration in the region, but also to interdict irregular 
migration when we have the opportunity to do so. It is my 
understanding that migrants coming through the area are 
principally Haitian and Cuban migrants who stop off in the 
Bahamas, and ultimately want to make their way to the United 
States.
    If I am confirmed, one of the things that I will urge the 
Bahamian Government is to ensure that they are following 
international standards in how they are managing irregular 
migration with the support of the United States as we have 
supported them in the past.
    There are significant pockets of migrants in the Bahamas. 
There is a large Bahamian-Haitian community in the Bahamas. As 
you are probably aware, Senator Markey, there has been a change 
in the policy of the Bahamian Government. It actually went into 
effect in November 2014. It now requires that migrants who are 
in the country actually have passports of their countries of 
nationality, and they also have documentation that they can 
legally be in the Bahamas.
    There have been concerns that have been raised by the 
Bahamian-Haitian community and by human rights advocates that 
the implementation of the policy has unfairly targeted Haitian 
communities, and that the Haitians or that the detainees who 
are being detained as a result of the policy in the detention 
facility are not being treated to international standards.
    I will, certainly, urge while I am there, if I am 
confirmed, that the Bahamians follow international standards in 
how they are implementing their immigrant policy and also how 
they are maintaining the detention facilities.
    As you are aware, Senator Markey, I have worked for a 
number of years on issues related to migration. These are 
things that I care about, I understand, and I look forward to 
having the opportunity, if confirmed, to engage on the issue.
    I am very confident, though, that the Bahamians have robust 
democratic institutions, and they will be able to address these 
concerns with the help of the U.S. Government and also the 
international community, and I look forward to engaging.
    Senator Markey. Thank you.
    Thank you, Mr. Chairman.
    Senator Flake. Thank you.
    We will do one more round, if that is all right.
    Mr. Folmsbee, do we know who is responsible for the latest 
attacks on the MINUSMA forces?
    Mr. Folmsbee. In the north, yes, I believe there is very 
good intel on that. This is an open session, and I do not know 
if it is out in the public yet. But there is good intel on 
that.
    There were also attacks in Bamako, and al-Mourabitoun 
actually has claimed responsibility for those attacks.
    Senator Flake. Do we know what is leading to this increase 
in attacks?
    Mr. Folmsbee. Well, it is very clear that some of the 
Tuareg extremists groups are looking to put pressure on the 
government as it relates to the peace talks. I think there is 
little doubt about that.
    But I also think that they will be thwarted. I think there 
is a lot of pressure back against them.
    Senator Flake. As far as the U.S. Government is concerned, 
do we have the right mix in civilian and military tools for you 
in the country?
    Mr. Folmsbee. I think we do, but I will also say, if 
confirmed, I am, certainly, going to be looking at that, 
because that is a fair question. The key issue is going to 
ultimately be what is the north--the opportunity for the 
government is really to make inroads to the north. There have 
to be paved roads up there. There have to be jobs up there. 
There have to be hospitals up there.
    So if the government does not swing around with that, our 
actions will not matter that much. So we have to make sure that 
the government takes that on.
    Senator Flake. Thank you.
    Ms. Phee, you mentioned in your testimony, the U.N. 
Security Council on March 3 resolution established a targeted 
sanctions regime, even proposed an arms embargo that could be 
imposed, should these South Sudanese officials not respond to 
mediation. What effect do you believe that would have, 
particularly the arms embargo that is talked about?
    Ms. Phee. Thank you, Mr. Chairman. The objective of the 
resolution was to send sort of an unequivocal signal to the 
parties that they were at a crossroads, that it is really time. 
This conflict has gone on too long. The humanitarian 
consequences are devastating. And it is time to reach an end 
and find a way forward.
    So it was an effort to provide the negotiators with a tool 
to convince both sides that there is no self-interest in 
sustaining the conflict. That is the objective of the 
resolution. It is tied very closely to the progress of the 
negotiations, particularly, as I mentioned, this new effort by 
IGAD to reformulate the negotiating process, and, frankly, to 
provide a more direct role for outsiders such as ourselves to 
be engaged and hopefully bring this over the finish line.
    Senator Flake. All right, well, thank you.
    Ms. Butts, we have cooperation with the government with 
regard to drug interdiction, with the Bahamian Government. Can 
that be improved, or is that considered good? How would you 
characterize it?
    Ms. Butts. Thank you, Mr. Chairman. We have made tremendous 
progress in that area. As you are aware, during the 1980s there 
was very robust trafficking, a lane through the Bahamas. And at 
that point in the 1980s, about 80 percent of the cocaine that 
came to the United States actually came through the Bahamas.
    Since then, we have actually established a very robust 
partnership that is focused on our OPBAT task force. As 
recently as 2011, actually 10 percent of the cocaine coming to 
the United States actually came through the Bahamas, and so we 
have had tremendous success in that regard.
    Unfortunately, over the past couple of years, Mr. Chairman, 
we have seen a bit of an uptick in what was 10 percent in 2011, 
has now become about 14 percent. So we are doing well. We can, 
certainly, do better. We could, certainly, use additional 
resources to fight illicit narcotics coming through. But we 
have a very strong partnership with the Bahamians on that area.
    Senator Flake. Thank you.
    Ms. Dhanani, what do you think the prospects are for 
elections that are scheduled to be held next year? And given a 
very complicated arrangement with the government appointed, as 
opposed to elected, how credible will that be seen around the 
country, if these elections are actually held?
    Ms. Dhanani. Thank you, Mr. Chairman, and I think you have 
touched on an extremely important factor. We need a Government 
of Somalia that is a representative government, that the people 
feel is answerable to them, and that is representative to all 
the regions of the country in order to have stability going 
forward.
    The existing Federal Government of Somalia was selected. 
Elders selected the Parliament, and the Parliament nominated 
the President, and there is a degree of representivity, but not 
to the extent that we require.
    That government, however, has defined and outlined a 
detailed roadmap toward representative government. ``Vision 
2016'' is the name of this roadmap. It is a roadmap that we and 
the rest of the international community are supporting.
    It includes a number of steps on which the deadlines have 
already been missed, quite frankly. We are currently focused on 
urging the Somalis to make progress toward restoring that 
schedule, making progress toward establishing a constitution.
    Creating a federal system is a very complicated task. When 
we think of what our Founding Fathers achieved and the 
stability of the United States, it is quite remarkable. This is 
the challenge that faces Somalis today. And we are supporting 
the vision that they have outlined, and we are urging, along 
with our friends and throughout the international community, 
that they stick to this plan that they have defined for 
themselves.
    Senator Flake. Thank you.
    Mr. Markey.
    Senator Markey. Thank you, Mr. Chairman.
    Each of you is extremely well-qualified. Life's work has 
prepared you for the jobs which you are being nominated to take 
on for our country. What I would like you to, perhaps, give us 
is, in each one of your own words, your hopes for what you will 
be remembered for in your ambassadorship, what achievement you 
want to have left behind when your service has been completed. 
I am going to ask each one of you to give me a sense of what it 
is that you would like to have left as your legacy.
    We will begin with you, Mr. Folmsbee.
    Mr. Folmsbee. This is really a great opportunity to talk 
about that, so thank you for that question.
    I think the key element and concern I have for Mali is the 
divide where the Niger River runs across the country. Everybody 
to the north has never really been connected to everyone to the 
south. So you have this cycle of conflict that has been going 
on for 50 years and probably much longer, actually.
    I think the opportunity for all of us in the diplomatic 
community and the government is to help connect that. That is 
going to be through education and other areas, as well as in 
security.
    So I hope that is the legacy that someone like myself and 
our whole team can leave behind, making that connection. That 
is going to make a big difference that will help stabilize that 
country.
    That is what I am going to do, if confirmed.
    Senator Markey. Thank you, sir.
    Ms. Phee.
    Ms. Phee. Thank you, Ranking Member Markey, for your 
support. If I were to be confirmed, I would be the second U.S. 
Ambassador to the Republic of South Sudan, so that raises a 
question: Who wants to be second, right? Generally speaking, 
second is not a positive space.
    But in this instance, I think second is very important and 
very special, because I would symbolize United States 
commitment to the people of South Sudan. We are there in the 
tough times, as well as the more fun times, as was experienced 
in 2011 when the new state was established.
    So, moreover, I would also follow, I think, in the 
footsteps of so many Americans, students, church groups, 
activists, Members of Congress, members of so many 
administrations who have cared for so long for the people of 
South Sudan and all the suffering they have experienced.
    So I would be proud to stand second behind all those folks, 
and represent U.S. commitment to helping get this right.
    Senator Markey. Thank you.
    Ms. Butts.
    Ms. Butts. Thank you, Ranking Member Markey.
    There is so much that I want to do. If I had to boil it 
down, I would say, just overall strengthening the bilateral 
relationship, furthering social and economic justice in the 
country. Certainly, building on and enforcing and supporting 
human rights for all the people of the Bahamas, and just more 
within the mission, within post, strengthening management, 
improving morale, showing that the people who work at post are 
valued and all of their efforts are appreciated.
    So I hope that my legacy is both inside appreciating the 
people who work at post, and outside reflecting the best of 
U.S. values and the best that we have to offer in America.
    Senator Markey. Thank you.
    Ms. Dhanani.
    Ms. Dhanani. Thank you, Senator Markey.
    I think I have a small advantage here. Unlike my colleague 
nominated for South Sudan, I will be the first in sometime, and 
therefore, I have that advantage in a sense.
    You know, the step of deciding to nominate someone to serve 
as Ambassador to Somalia represented the progress that was the 
result of a lot of hard work that many people, including many 
of my colleagues in the U.S. Government, put in over the last 
few years. So in a sense, my nomination is a tribute to the 
efforts that they made.
    Similarly, I would hope the efforts that I and my team make 
will take us to that next step, the step of establishing a 
permanent diplomatic presence in Mogadishu. I think that step 
will be important in itself, but it will be even more important 
because it will be a sign that so many things have continued to 
move in a favorable direction, and that Somalia is getting 
closer and closer to being the kind of peaceful, secure, 
unified, stable place that we would all like to see it become.
    Senator Markey. Thank you.
    Well, you are an extraordinary group, and we thank you for 
your willingness to serve our country.
    Thank you, Mr. Chairman.
    Senator Flake. Thank you.
    I want to note the presence of the Deputy Chief of Mission, 
Chet Neymour, from the Bahamas here.
    I want to thank all of you for your testimony and for being 
here. Thank you for your service. And hearing your remarks and 
looking at your resumes, it is apparent that you have all been 
at this awhile. And I know that sometimes our diplomatic 
efforts are overlooked by the general populace. You are not 
given the opportunity to board an airplane first or things like 
that sometimes that another branch of our government seems to 
get noticed for. But I want you to know that we here appreciate 
what you do, and we are grateful for your sacrifice and for the 
sacrifice of your families. The risks, we know that the risks 
out there that you expose yourselves to as well, and they are 
not insignificant, particularly with many of these assignments.
    So thank you for what you do. Thank you for being here.
    For the information of members, the record will remain open 
until the close of business on Friday, March 27. This will 
include time for members to submit questions for the record. We 
would ask you to respond to these questions quickly. Your 
responses will be made part of the record as well.
    Senator Flake. With the thanks to the committee, this 
hearing is now adjourned.
    [Whereupon, at 3:12 p.m., the hearing was adjourned.]

                              ----------                              


              Additional Material Submitted for the Record


   Responses of Paul A. Folmsbee, Nominated to be Ambassador to the 
      Republic of Mali, to Questions from Members of the Committee

               ambassador-designate folmsbee's reponses 
                    to questions from senator corker
    Question. What further influence will the United States utilize 
through your offices or other means to compel greater compromise and 
collaboration in seeking sustainable peace, especially by the long-
standing intransigent government and officials in the southern portion 
of the country? How will you work with the Government of Mali in 
addressing marginalization in the north?

    Answer. The United States is engaged in robust diplomatic outreach 
to urge all parties in Mali to commit immediately to the March 1, 2015, 
peace agreement. We are working closely with the Government of Mali to 
support improved service 
delivery to northern Mali and are considering ways we could support a 
final peace agreement.
    Right now, the United States is supporting a variety of efforts 
designed to promote peace and reconciliation in northern Mali, 
including translating, printing, and disseminating 30,000 copies of the 
peace agreement in local languages; empowering grassroots civil society 
peace campaigns through hundreds of local forums and discussions; 
promulgating radio and television programming and targeted SMS text 
messages reaching millions of Malians; and strengthening national-level 
institutions charged with resolving the crisis, such as through 
creating a communications cell in the Ministry of National 
Reconciliation and improving the capability of justice and civilian 
security institutions to provide vital services in the north.

    Question. What are the positions of the United States, France, and 
neighboring states on the prospect of federalism or autonomy for 
northern Mali? How such reorganization affect U.S. policy in Mali?

    Answer. The United States, together with France and other key 
international partners, strongly supports the June 2013 Ouagadougou 
Accord. This framework agreement, signed by both the Government of Mali 
and the northern armed groups, reinforces the international community's 
commitment to the territorial integrity of the Malian state.

    Question. MINUMSA signals a shift in the context of United Nations 
peacekeeping operations in which peacekeepers are combating an 
extremist presence. Does the United States support U.N. peacekeeping as 
peace enforcement?

    Answer. Today, two-thirds of U.N. peacekeepers are operating in 
active conflict areas, many with a chapter VII mandate of peace 
enforcement. The United States has supported that mandate for these 
missions. Some of these chapter VII mandated missions involve peace 
enforcement in situations involving extremists. MINUSMA does not 
necessarily represent a shift in the chapter VII operating environment.
    MINUSMA's mandate, under chapter VII authority, to protect 
civilians and support the Malian authorities in stabilization efforts 
and to take steps to deter threats and prevent the return of armed 
elements, is one part of a broader strategy, including political 
engagement, to bring stability to northern Mali.

    Question. How does the lack of an AFRICOM jurisdictional boundary 
in the Sahel region benefit U.S. Government efforts in dealing with the 
instability in Mali? What benefits would State Department realize if 
there was a unified region under one Regional Bureau? How does State 
Department work through the range of regional and bilateral programming 
applied to counter terrorism, transborder criminal trafficking and 
activity, build governance and economic capacity, train, equip, advise 
and assist security forces, and respond to humanitarian and human 
rights crises?

    Answer. Through the Trans-Sahara Counter Terrorism Program (TSCTP), 
the United States is working to address transborder issues in Mali and 
the Sahel. TSCTP supports programs that strengthen the Government of 
Mali's operational and tactical abilities to combat terrorism and 
programs designed to ensure that Malians remain unreceptive to 
extremist messages.
    Programs designed to strengthen Mali's counterterrorism 
capabilities include:

   Antiterrorism Assistance (ATA) training for law 
        enforcement. This program provides police with training needed 
        to protect facilities, individuals, and infrastructure from 
        terrorist attacks and respond to major crises such as hostage 
        takings.
   Establishment of a Legal Advisor from Department of Justice 
        beginning in calendar year 2014.

    Programs designed to counter violent extremism include:

   Installation of community radio stations in the most remote 
        regions of northern Mali and support for radio programming;
   Support for small scale-community infrastructure such as 
        school rehabilitation and well projects;
   Engagement with ``medersas,'' which in Mali are Islamic 
        versions of parochial schools that teach secular subjects and 
        are very different from ``madrasas'' or Koranic schools;
   Publishing and distribution of 56,600 Arabic-language 
        civics textbooks to medersas for the 2011-2012 school year;
   Cultural and educational exchange programs and the 
        preservation of ancient Islamic manuscripts;
   Capacity-building for local government officials and 
        institutions to support decentralization and democratic 
        governance; and
   Skills training for youth, including a just launched USAID/
        Mali Out-of-School Youth Project (Projet d'Appui aux Jeunes 
        Entrepreneurs) that provides out-of-school youth, ages 14-25, 
        with low literacy skills nonformal basic education instruction, 
        technical and work readiness training, as well as training in 
        entrepreneurship and leadership.

                               __________
               ambassador-designate folmsbee's responses 
                   to questions from senator menendez
    Question. What are the most important actions you have taken in 
your career to date to promote human rights and democracy? What is the 
impact of your actions? Why were your actions significant?

    Answer. As the Senior Civilian Representative embedded with 
Regional Command East in Afghanistan from 2011 to 2012 and as 
Provincial Reconstruction Team Leader embedded with the 2/82 Airborne 
in Sadr City and Adhamiya, Baghdad, Iraq from 2007 to 2008, I am proud 
of the work I did to promote stability, strengthen democracy and 
protect human rights in two dangerous but vitally important places. If 
confirmed, I will draw on my experiences in Iraq and Afghanistan, among 
others, to emphasize the importance of protecting human rights and 
promoting justice as we work to support the national reconciliation 
process in Mali.

    Question. What are the most pressing human rights issues in Mali? 
What are the most important steps you expect to take--if confirmed--to 
promote human rights and democracy in Mali? What do you hope to 
accomplish through these actions?

    Answer. The 2013 inauguration of President Keita and the 
establishment of a new National Assembly through free and fair 
elections ended a 16-month transitional period following the 2012 
military coup, armed rebellion, and terrorist occupation of the north. 
The restoration of a democratic government and the arrest of coup 
leader Amadou Sanogo restored some civilian control over the military. 
The 2013 international military intervention helped to eradicate 
terrorists and the resumption of peace talks with armed groups has 
decreased armed conflict.
    However, problems exist in some areas. These include ineffective 
civilian control over security forces and impunity toward the military; 
acts of sexual violence, summary execution, torture, and use of child 
soldiers by armed groups; killing of civilians and military forces 
including peacekeepers by violent extremists; trafficking in persons 
and exploitative labor, including child labor; and judicial 
inefficiency, poor prison conditions, arbitrary arrest and detention, 
lengthy pretrial detention prolonged trial delays, and lack of access 
to justice in the North.
    If confirmed, I will continue Embassy Bamako's extensive diplomatic 
outreach and programming in support of the peace process and a national 
reconciliation process that will provide justice and accountability.

    Question. If confirmed, what are the potential obstacles to 
addressing the specific human rights issues you have identified in your 
previous response? What challenges will you face in Mali in advancing 
human rights and democracy in general?

    Answer. The Government of Mali took strong initial steps to advance 
justice and fight impunity from prosecution, most notably with the 
imprisonment and ongoing investigation against coup leader Amadou 
Sanogo and 28 other individuals implicated in extrajudicial killings 
and forced disappearances committed in the aftermath of the coup 
d'etat. Judge Yaya Karambe helped drive this fight against impunity as 
he worked under constant threat from Sanogo's supporters to gather 
evidence and arrest suspects, culminating in his uncovering a mass-
grave with 21 missing Red Beret soldiers in December 2013.
    These efforts are laudable, but I am concerned about the lack of 
progress in pursuing justice for victims of terrorism or human rights 
abuses that occurred during the occupation of northern Mali. Human 
rights abuses committed in northern Mali on all sides of the conflict 
have not been addressed and remain a sticking point in the 
reconciliation process. The capacity of the justice sector is 
significantly limited in the north, as judicial officials have been 
slow to return over continued fears of insecurity. Human rights 
organizations documented various abuses committed during and after the 
conflict, including northern armed groups which killed, raped, and 
abused soldiers and civilians during the 2012 invasion, and Malian 
Armed Forces which committed summary executions, torture, and forced 
disappearances upon retaking territory in early 2013.

    Question. Are you committed to meeting with human rights and other 
nongovernmental organizations in the United States and with local human 
rights NGOs in Mali?

    Answer. If confirmed, I look forward to working closely with 
nongovernmental organizations in both the United States and Mali to 
solidify Mali's democratic transition and promote human rights.

    Question. If confirmed, please describe steps that you will take to 
enhance effective implementation of Section 620M of the Foreign 
Assistance Act of 1961, commonly known as the Leahy amendment, within 
the Embassy in Mali as well as steps you would take to accomplish the 
goal of the law, namely, helping the Government of Mali end impunity 
for human rights violations by security forces.

    Answer. If confirmed, I will work to strengthen security sector 
institutions in Mali by promoting accountability and civilian control. 
Careful attention to the Leahy vetting process is critical in assuring 
that this assistance reaches only those individuals within Mali's 
security forces who are not implicated in abuses of human rights and 
can be credible advocates for reform and professionalization through 
participation in a meaningful national reconciliation process that 
emphasizes respect for human rights of all Malians.

    Question. After days of protests in the north and a rejection of 
the recent peace proposal by Tuareg rebels, the Malian Government 
announced that it would no longer negotiate on the future of the north.

   What are the implications of the recent stalemate over a 
        peace deal?

    Answer. Failure of the parties to reach an agreement risks further 
violence and increased alienation by the northern populations. However, 
the agreement would be only a first step toward peace, security, and 
development in the polarized communities in the north. Without a peace 
agreement and follow-on action to resolve long-standing issues that 
divide Bamako and the north, violent extremists will continue to make 
northern Mali insecure. This insecurity has increased, with more 
frequent attacks against civilians, the United Nations Multidimensional 
Integrated Stabilization Mission in Mali (MINUSMA ), and the French 
forces of Operation Barkhane.
    Upon signing a peace agreement, the opportunity for the Government 
of Mali is to noticeably establish a real presence in the north with 
hospitals, paved roads, schools, and expanding economic development. 
The United States will do all it can to assist the government in that 
initiative.

    Question. In your written testimony, you referenced the need to 
reform the Malian security sector. Mali is one of six partner countries 
for the administration's new Security Governance Initiative (SGI).

   What is the status of the development of SGI programming in 
        Mali?
   What has been achieved through existing security sector 
        assistance programs such as the Trans-Sahara Counterterrorism 
        Partnership (TSCTP)?
   What lessons can be drawn from TSTCP to inform efforts 
        under SGI?

    Answer. An interagency Security Governance Initiative (SGI) team 
visited Mali in February to consult with Malian partners on potential 
areas for SGI engagement. Expert teams will reengage with Malian 
counterparts to develop joint country action plans and programs.
    Trans-Sahara Counter Terrorism Program (TSCTP) activities in Mali 
remain very targeted to specific sectors and activities. We have small 
programs focused on law enforcement, justice sector, and corrections 
reform and Antiterrorism Assistance programming on crisis response and 
terrorist interdiction. In part this is due to the significant European 
Union program underway there that permits us to be more selective in 
our engagement. This year TSCTP supported the deployment of Law 
Enforcement and Resident Legal Advisors to assist in civilian security 
and justice sector reform. In addition, TSCTP supports several 
countering violent extremism (CVE) programs promoting peace building, 
reconciliation, and tolerance. Overall, the United States is focusing 
on broader security sector reform and political reconciliation before 
committing to the same kind of tactical training and equipping of 
counterterrorism units.
    TSCTP's experience in Mali and elsewhere in the Sahel and Maghreb 
provides several important lessons which may benefit SGI efforts. Our 
experience in Mali highlighted the importance of addressing state 
weakness and focusing on institutional resilience as key parts of our 
overall engagement strategy. Before the fall of the Toure Government, 
TSCTP focused on tactical-level training for various Malian units and 
the underlying state weaknesses were not sufficiently addressed. 
Consequently, when the units were deployed without adequate leadership 
or logistical support, they quickly collapsed. By contrast, TSCTP has 
intensified its focus on building more sustainable capabilities in 
Chad, Mauritania, and Niger and invested in defense and civilian 
security institutions. Capacities in those countries remain nascent in 
many sectors, but we have seen benefits to the approach as they have 
responded to threats along multiple borders from Mali, Nigeria, and 
Libya.

    Question. Mr. Folmsbee, you alluded to the north-south divide in 
Mali that has contributed to cycles of conflict. The integration of 
Tuareg citizens into the broader society has been an ongoing challenge, 
not only in Mali, but elsewhere in the Sahel.

   If confirmed as Ambassador, how do you plan to work with 
        the Malian Government, civil society organizations, and other 
        stakeholders to work toward this goal?

    Answer. National reconciliation is a top U.S. policy priority in 
Mali. If confirmed, I plan to continue working to promote national 
reconciliation through partnerships with civil society and the Malian 
Government and by participating in the peace talks as needed. 
Additionally, with USAID programming, we will promote economic growth 
and the health sector to help tie the north to the rest of the country.
    In direct support of the peace talks, our efforts will include 
translating, printing, and disseminating 30,000 peace process documents 
in local languages; empowering grassroots civil society peace campaigns 
through hundreds of local forums and discussions; promulgating radio 
and television programming and targeted SMS text messages reaching 
millions of Malians; and strengthening national-level institutions 
charged with resolving the crisis, such as through creating a 
communications cell in the Ministry of National Reconciliation.

                               __________
               ambassador-designate folmsbee's responses 
                    to questions from senator flake
    Question. What more, if anything, can be done to stimulate economic 
growth and alleviate poverty in Mali? What are the most significant 
U.S. commercial interests in Mali? What is the environment for U.S. 
businesses and investors, and how might it be improved?

    Answer. Mali faces formidable challenges to economic development. 
Its economy is heavily dependent on agriculture, which makes up 45 
percent of GDP and provides income for 75 percent of the country's 
population.
    In order to promote long-lasting food security, the United States 
invests in the sustainable development of agriculture through the Feed 
the Future (FTF) initiative. Agriculture is a driver of economic 
growth, employment, better health, and nutrition, and remains a sector 
where Mali has an underexploited comparative advantage.
    With an FY 2014 budget of $18 million, FTF works to develop and 
reinforce the private sector by targeting opportunities in the 
production, processing, and trade of selected commodities in key 
geographic areas. USAID/Mali also recently signed a nearly $14 million 
dollar Development Credit Authority (DCA) microcredit facility to 
support small and medium-size agricultural enterprises as well as 
female entrepreneurs.

    Question. Would you advise an expansion of U.S. security 
assistance? Please describe how the Security Governance Initiative will 
be implemented in Mali.

    Answer. Rebuilding Mali's security institutions in the wake of the 
2012 coup is critical to Mali's capacity to control its porous borders 
and vast territory, counter terrorist influences and deny Al Qaeda in 
the Islamic Maghreb (AQIM) the ability to use northern Mali as a safe 
haven. In our meetings with civil society, it is clear that better 
security service delivery and access to justice will be a critical 
component to any effort to bring stability to the country. Through the 
Security Governance Initiative and other complementary programs, we 
will support the development of these critical security institutions, 
systems and processes to increase accountability and improve security 
and justice through transparent and responsive governance.

    Question. What is your assessment of security trends in the Sahel? 
How might U.S. counterterrorism efforts in Mali and the wider Sahel 
best be evaluated and prioritized?

    Answer. The continued presence and activities of al-Qaeda 
affiliates, including Al Qaeda in the Islamic Maghreb (AQIM), other 
armed extremists and transnational criminal groups in northern Mali, 
threatens both Mali and the broader Sahel region. Ensuring that Malians 
continue to reject extremist messages is a key focus of U.S. 
counterterrorism programming in Mali. Our ability to counter extremist 
influences depends on a skillful balance of programs designed to 
consolidate Malian democracy, support economic growth, deepen mutual 
understanding, promote moderate messages, and assist the Malian 
Government and local leaders to deliver basic services and counter the 
root causes of extremism.

    Question. Who is responsible for recent attacks against MINUSMA 
forces, and what factors are contributing to their increase? How might 
U.S. interagency coordination related to regional counterterrorism be 
improved?

    Answer. Al-Morabitun and the Movement for the Oneness and Unity of 
the Jihad (MUJAO), both groups with ties to Al Qaeda in the Islamic 
Maghreb (AQIM), have claimed responsibility for attacks against U.N. 
peacekeepers in Mali. Other armed extremists and transnational criminal 
groups, coupled with slow progress on national reconciliation between 
the Government of Mali and northern groups, have produced an 
increasingly insecure environment for the U.N. mission.
    We are working closely with the U.N. Department of Peacekeeping 
Operations (DPKO), the GOM, troop and police contributing countries 
(TCCs/PCCs) and other international partners to support the mission to 
better operate in this insecure environment and implement its robust 
mandate.
    U.S. Africa Command (AFRICOM) recently sponsored an asymmetric 
threat assessment team that traveled throughout the MINUSMA area of 
operations and is providing recommendations that may reduce peacekeeper 
vulnerability and contribute to IED threat mitigation. We are providing 
mine-protected combat vehicles for MINUSMA contingents and training 
peacekeepers how to use them, and exploring ways to support more C-IED 
training for troop contributing countries (TCCs).
    In close partnership with MINUSMA's U.N. Police (UNPOL) and the EU 
Police capacity-building mission (EUCAP), we have also conducted IED 
awareness seminars for the Malian National Police who work in northern 
Mali. Additionally, the ACOTA Program has provided Counter-IED training 
to TCCs trained and deploying to MINUSMA (Benin, Burkina Faso, Ghana, 
Niger, and Togo). During the 7-10 week battalion training, Counter-IED 
tasks relevant to an infantry battalion are integrated into command and 
staff, soldiers' skills and collective unit training.

    Question. Mali's current peace process has gotten bogged down. What 
more can the United States do to encourage a peaceful political 
resolution? If another deal is struck, what will you do differently 
than your predecessors to ensure that this next one, unlike the 
previous four peace deals, will stick?

    Answer. We are working, with our international partners, to 
encourage all parties to sign the Algiers agreement as soon as 
possible. We are also considering how the United States could most 
effectively support the implementation of this agreement by leveraging 
our diplomatic and development assistance resources.

    Question. Do we have the mix of civilian and military tools right 
in Mali? How will you, as chief of mission, ensure that U.S. civilian 
capabilities are not overshadowed by our military?

    Answer. We continue to emphasize that the only way to create a 
lasting peace in Mali is through a durable political agreement between 
the Government of Mali and the northern armed groups. Embassy Bamako's 
diplomatic outreach in support of the peace process is a whole-of-
government effort that emphasizes the importance of solidifying Mali's 
democratic transition and strengthening security sector institutions. 
We are beginning to implement robust civilian security engagement with 
the police and justice sector to improve these critical elements of a 
stable democracy.

                               __________

  Responses of Mary Catherine Phee, Nominated to be Ambassador to the 
  Republic of South Sudan, to Questions from Members of the Committee

                 ambassador-designate phee's responses 
                    to questions from senator corker
    Question. Does the United States agree with the 2014 African Union 
report that neither antagonist Riek Machar or Salva Kiir should serve 
in South Sudan's transitional government?

    Answer. The report referred to is a leaked document which the 
African Union disavowed in an official statement on March 16. Our view 
is that the two leaders need to make compromises to reach a peace 
agreement and form a transitional government that can accomplish 
essential transitional tasks such as holding elections for a permanent 
government and establishing a hybrid judicial body to promote 
accountability and justice.

    Question. How will U.S. influence on South Sudan's warring parties 
be affected by the expansion of the IGAD peace talks beyond IGAD member 
states?

    Answer. ``IGAD Plus,'' as proposed by IGAD Chairman, Ethiopian 
Prime Minister Hailemariam Desalgn, envisions additional leverage on 
the warring parties though enhanced international participation and 
cooperation, bolstering the negotiation efforts of the current IGAD 
leadership. This includes participation by the African Union, which has 
selected five African heads of state for this purpose, the Troika 
(United States, United Kingdom, and Norway), the U.N., the EU, and 
China.
    A reformed and reinvigorated ``IGAD Plus'' process would unite a 
number of stakeholders and members of the international community 
behind a common peace plan and gives international partners, including 
the United States, a larger role in shaping process and substance. The 
United States will continue to look for further opportunities to 
enhance the IGAD mediation process and will lead international efforts 
to bring additional pressure upon the parties to shift their concern 
toward the people of South Sudan, instead of their narrow political 
interests.

    Question. How do you assess the relationship between UNMISS 
peacekeepers and humanitarian organizations in fulfilling the 
protection of civilians mandate?

    Answer. UNMISS is mandated to protect civilians with support from 
its 11, 669-person strong military force. This U.N. mission has four 
priorities: protection of civilians, monitoring and investigating human 
rights, creating the conditions for the delivery of humanitarian 
assistance, and supporting the implementation of the Cessation of 
Hostilities agreement.
    UNMISS has established seven protection of civilian sites for 
internally displaced persons and is protecting nearly 113,000 IDPs in 
these sites. In tandem with humanitarian organizations, UNMISS is 
providing assistance to civilians at these sites as well as to those 
displaced elsewhere in the country. The partnership between UNMISS and 
the humanitarian organizations is vital and robust and we continue to 
encourage both sides to cooperate with these efforts.
    Recent troop deployments from Kenya, China, and Ghana will enable 
UNMISS to conduct its protection tasks more effectively, including 
patrols and proactive community engagement. Inadequate infrastructure, 
difficult weather conditions, and access challenges posed by the 
parties in conflict hinder UNMISS' ability to fully execute its 
mandate.

    Question. How will you ensure the United States does not enter into 
an agreement that perpetuates the failures of the 2005 CPA that left 
unresolved significant interethnic rivalries and challenges?

    Answer. Recalling the scale and devastation of the Sudanese civil 
wars, which exacted tremendous human cost over two decades, the CPA was 
a critically important accomplishment that ended the fighting. 
Unfortunately, the parties to the CPA did not implement many of the 
important provisions designed to build institutions that would 
facilitate development and good governance throughout Sudan and what is 
now South Sudan. If confirmed, I will work to encourage both parties to 
end the current conflict in South Sudan and establish a transitional 
government that begins to address these longstanding challenges. The 
primary criticism of the CPA is that the official parties lacked 
diversity and inclusivity. I will seek to engage all stakeholders and 
encourage their participation in developing broad-based institutions 
and sustainable development.

                               __________
                 ambassador-designate phee's responses 
                   to questions from senator menendez
    Question. What are the most important actions you have taken in 
your career to date to promote human rights and democracy? What is the 
impact of your actions? Why were your actions significant?

    Answer. I have had the opportunity to directly advance human rights 
and democracy in nearly every assignment in my career and expect deep 
engagement in such efforts in South Sudan, if confirmed.
    As a political reporting officer in Cairo, Egypt, from 1997-2000, I 
undertook path-breaking reporting on the government's treatment of the 
Coptic Christian community and relations between Copts and Muslims. I 
convinced USAID to transfer democracy and governance funds to the State 
Department and with those funds administered a small grants program 
that provided assistance to human rights advocates; significantly, 
these grants were not subject to prior approval from the Government of 
Egypt.
    Examples of the program's beneficiaries include activists working 
to combat female genital mutilation and those providing legal 
assistance to Egyptians who had been tortured. We also used these funds 
to support the travel of Egyptian activists to the United States to 
learn about American civil society and judicial processes. Several of 
the program's beneficiaries were active in the 2011 Arab Spring.
    While administering an occupied province of southern Iraq in 2003-
2004, I arranged for the establishment of a provincial council and 
municipal councils with reserved seats for women and religious 
minorities who were elected in caucuses from their communities. In 
explaining the purpose of reserved seats and the function of caucuses, 
I was able to educate local leaders who had no prior experience with 
inclusive participatory governance systems and to mobilize previously 
oppressed communities.
    Most recently, as deputy chief of mission in Addis Ababa from 2011-
2014, I arranged U.S. Government financial support for journalists 
fleeing the country who feared persecution, as well as for victims of 
Wikileaks. I chaired the mission's interagency working group on 
democracy and governance, and pioneered an innovative effort to create 
a dialogue between prominent American academics and senior Ethiopian 
party leaders about one party states in agrarian-based economies in 
East Asia (countries whose economic transformation Ethiopia seeks to 
emulate) which had chosen to liberalize politically in order to 
illustrate that democratization can bring stability and economic 
progress.

    Question. What are the most pressing human rights issues in South 
Sudan? What are the most important steps you expect to take--if 
confirmed--to promote human rights and democracy in South Sudan? What 
do you hope to accomplish through these actions?

    Answer. The most pressing human rights issues are ending the war, 
promoting accountability and addressing the needs of those displaced by 
the conflict. If confirmed I intend to support efforts to hold 
accountable those who have committed human rights violations, abuses, 
and other atrocities in this conflict. We have pledged to work with the 
South Sudanese, the AU, regional partners, and the U.N. to promote 
accountability for abuses committed in this conflict.
    I will also support efforts to combat gender-based violence and the 
recruitment of child soldiers. I will promote the expansion of civic 
space for alternative voices and the role of a free press. I will reach 
out to local government officials, professional associations, civil 
society organizations, youth, women, and traditional leaders to promote 
human rights, democracy and the rule of law.

    Question. If confirmed, what are the potential obstacles to 
addressing the specific human rights issues you have identified in your 
previous response? What challenges will you face in South Sudan in 
advancing human rights and democracy in general?

    Answer. In South Sudan there is a history of impunity for human 
rights abuses and violations. South Sudan also lacks strong 
institutions capable of enforcing the rule of law. Building local 
capacity and facilitating reconciliation among the people of South 
Sudan is a long-term challenge and will require the consistent support 
of the friends of the South Sudanese.

    Question. Are you committed to meeting with human rights and other 
nongovernmental organizations in the United States and with local human 
rights NGOs in South Sudan?

    Answer. If confirmed, I look forward to working with human rights 
groups and other nongovernmental organizations, both local and 
international. I will reinforce current U.S. engagement with civil 
society and other South Sudanese and international partners to promote 
human rights.

    Question. If confirmed, please describe steps that you will take to 
enhance effective implementation of Section 620 M of the Foreign 
Assistance Act of 1961, commonly known as the Leahy amendment, within 
the Embassy in South Sudan as well as steps you would take to 
accomplish the goal of the law, namely, helping the Government of South 
Sudan end impunity for human rights violations by security forces.

    Answer. All U.S. Government assistance to the defense sector was 
suspended shortly after the outbreak of the current conflict. We remain 
concerned about the conduct of both the Government of South Sudan and 
opposition forces.
    The United States has urged the African Union Peace and Security 
Council to immediately release the report of the African Union's 
Commission of Inquiry, which was charged with developing findings 
regarding violations of international human rights and international 
humanitarian law committed during the armed conflict, and formulating 
recommendations on the best ways and means to ensure accountability, 
reconciliation, and healing. We are prepared to support mechanisms that 
advance these goals. When the parties achieve a lasting peace and we 
review the possibility of providing assistance for security sector 
reform, I will work to ensure that all relevant U.S. Government 
agencies and offices are working together and actively sharing 
information to ensure the Leahy law is being fully implemented.

    Question. The Special Envoy for Sudan and South Sudan has the lead 
role in directly engaging with the Intergovernmental Authority on 
Development and parties to the conflict in South Sudan as part of 
ongoing peace negotiations.

   a. What is your role if any, in the peace process? In what 
        ways will you work to bring an end to the civil war?
   b. In the event that the latest round of talks--reported to 
        be scheduled for some time in April--do not result in an 
        agreement, what next steps will the United States take to bring 
        about an end to the conflict?
   c. How much information do ordinary citizens have about the 
        peace process, and how are their interests being represented in 
        negotiations?

    Answer. a. If confirmed, I, in coordination with the President's 
Special Envoy for Sudan and South Sudan, Ambassador Donald Booth, will 
steadfastly engage both parties on the need to make compromises and to 
come to a political agreement. I will also directly engage the people 
of South Sudan to promote peace and provide humanitarian assistance 
without regard to ethnic or political affiliation.
    b. The Intergovernmental Authority on Development (IGAD) is now 
moving ahead to prepare for a peace summit in the coming weeks, and has 
the critical task of engaging stakeholders and members of the 
international community to get behind a common peace plan. Ultimately, 
however, the decision to end this needless conflict lies with the 
warring parties. The United States will continue to look for further 
opportunities to enhance the mediation process and will lead 
international efforts to bring additional pressure upon the parties. We 
are in discussions with our partners in the region and the 
international community on how best to support upcoming talks, to 
increase pressure on the parties, and to widen international consensus 
to support the peace process if these talks fail.
    c. Given the high rate of illiteracy, and minimal internet 
penetration and newspaper circulation in South Sudan, radio broadcast 
is the most effective means to disseminate information. And more of 
this is needed. We are working with implementing partners to expand 
accurate live broadcast radio coverage of the mediation and to 
distribute peace messaging through local partners. We have pressed IGAD 
to include a broad range of opposition political parties, civil 
society, religious leaders, women, and youth and have provided direct 
support to civil society participants in the process so they can 
advocate for the South Sudanese people.

    Question. On March 24, Parliament voted to extend by 3 years 
President Kiir's term in office. Originally set to end on July 9, 2015, 
his mandate now expires in 2018.

   What was the reasoning behind the extension of President 
        Salva Kiir's mandate, and what are the repercussions on the 
        peace process?
   Could it affect former Vice President Riek Machar's 
        willingness to negotiate? How transparent was the process 
        through which the vote was debated and taken? What effects 
        might the extension of President Kiir's mandate have on the 
        development of democracy in South Sudan?

    Answer. The Government of the Republic of South Sudan has justified 
the extension of its tenure to 2018 to allow more time to achieve a 
peaceful settlement. However, this step by the legislature sends a 
negative signal about the government's commitment to a transitional 
government and for the development of democracy in South Sudan. This 
action has created another political grievance for the opposition. We 
have been clear that the way to extend legitimacy without elections is 
through a negotiated peace agreement in South Sudan and the 
establishment of a transitional government.

    Question. Administration officials, including Ambassador Booth in 
his testimony before the House Foreign Affairs Committee on February 
26, 2014, have stated that things must not ``return to business as 
usual'' which seemed to imply that a political solution among elites at 
the expense of justice and accountability for crimes committed is 
unacceptable.

   Are there currently discussions in South Sudan about the 
        need for accountability for violations of human rights 
        committed during the course of the conflict?
   What grassroots efforts are underway to promote justice, 
        accountability and reconciliation? Is the United States 
        supporting such efforts?

    Answer. Discussions about the need for accountability have taken 
place among those in the Government of the Republic of South Sudan, 
opposition forces, Intergovernmental Authority on Development (IGAD) 
mediators, and civil society groups. The U.S. Government has 
facilitated these discussions through its support for a 
multistakeholder peace process. The parties to the conflict have agreed 
on general provisions for a legal mechanism to prosecute those 
responsible for gross human rights abuses and violations, as well as a 
commission for truth, reconciliation, and healing, but no steps have 
been taken to put these into place absent a peace agreement. Justice 
and accountability are critical elements of a lasting peace.
    The United States is encouraging grassroots efforts by South 
Sudanese groups and individuals to promote justice, accountability, and 
reconciliation. For example, the Department of State is in the process 
of funding an in-country South Sudanese civil society-led project to 
investigate and document human rights abuses and violations.

    Question. There are reports that the Government of South Sudan is 
imposing burdensome bureaucratic obstacles such as arbitrary taxation, 
expulsion of staff, and a delay in issuing permits, that are making it 
difficult for nongovernmental organizations to provide humanitarian 
assistance. The United States has provided nearly a billion dollars in 
humanitarian assistance this fiscal year, and thus a strong interest in 
ensuring that the operating environment is conducive to efficient 
provision of assistance.

   Are you aware of the reports of bureaucratic obstacles 
        imposed on organizations trying to carry out lifesaving 
        humanitarian operations in South Sudan? What will be your role 
        in helping to ensure they are able to carry out their work 
        without being harassed or otherwise impeded by government?

    Answer. I am aware of such concerning reports, including threats of 
expulsion of nongovernmental organizations (NGOs), harassment, 
abduction, detention, and expulsion of NGO workers, delays in visas and 
work permits, denial of tax exemptions, import delays, and bureaucratic 
delays in moving cargo by road, river, and air.
    If confirmed, I will engage all parties to press for immediate and 
unconditional access for humanitarian workers so they can deliver 
humanitarian assistance to all South Sudanese people in need. I will 
also work with other donor governments and organizations and the U.N. 
to help minimize the obstructions to humanitarian aid.
                 ambassador-designate phee's responses 
                    to questions from senator flake
    Question. Does the administration view South Sudan's oil revenues 
as contributing to the current conflict, and, if so, are sanctions 
against the oil sector being considered?

    Answer. We believe that the government revenues are largely being 
directed to security spending which makes the search for peace all the 
more urgent. At the same time, several factors have significantly 
decreased oil revenues for the government, which receives the majority 
of its income from oil. The conflict has caused a disruption in total 
oil production, which dropped from 220,000 barrels per day (bbl/d) in 
November 2013 to 150,000 bbl/d on average in 2014. The drop in the 
global price of oil has further reduced South Sudan's oil income. 
Production will only be restored to preconflict levels when the parties 
cease fighting and provide the security needed for critical repair and 
maintenance of oil infrastructure in South Sudan. We are not at this 
time considering sanctions against the oil sector.

    Question. What is the extent of the Ugandan military deployment in 
South Sudan? Are Ugandan forces playing an active role in the fighting? 
How does the Obama administration view Uganda's role in the conflict?

    Answer. At the request of President Salva Kiir, two brigades of 
Ugandan troops were deployed in December 2013 during the initial days 
of the conflict to protect key infrastructure and the city of Juba 
against opposition forces. Ugandan forces remain in South Sudan at the 
invitation of the government.
    The Agreement on the Cessation of Hostilities that was brokered by 
Intergovernmental Authority on Development (IGAD) mediators in January 
2014, and signed by both the Government of South Sudan and the 
opposition, calls for the withdrawal of foreign forces from South 
Sudan. The parties have subsequently rededicated themselves to the 
Agreement and we continue to press for its immediate implementation.
    We remain continuously engaged with the Government of Uganda to 
promote a common strategy for pressing the parties to stop the fighting 
and find a negotiated rather than a military solution to the conflict.

    Question. Given the role you will play in the peace process, how do 
you plan to maintain legitimacy with both sides involved in the 
conflict?

    Answer. The United States, in coordination with IGAD and our Troika 
partners Norway and the United Kingdom, has maintained the firm 
position that both parties are responsible for this conflict and the 
failure to reach peace. If confirmed, I, in coordination with the 
President's Special Envoy for Sudan and South Sudan Ambassador Donald 
Booth, will steadfastly engage both parties on the need to make 
compromises and to come to a political agreement. I would also directly 
engage the people of South Sudan to promote peace and provide 
humanitarian assistance without regard to ethnic or political 
affiliation.

    Question. In your testimony you note that the U.N. Security 
Council's March 3 resolution ``established a targeted sanctions regime 
and proposed an arms embargo that could be imposed should the South 
Sudanese leaders fail to respond to the mediation.''

   Do you think the threat of sanctions will be seen as 
        credible by the parties and encourage them to reach a 
        compromise?
   Are we able to identify significantly influential 
        individuals for sanctions in both camps?
   What impact do you anticipate the arms embargo would have? 
        How would it the power balance in the conflict?

    Answer. The March 3rd U.N. Security Council's sanctions resolution 
allows for the imposition of asset freezes and travel bans on those who 
hinder the South Sudanese peace process or commit human rights 
violations. The resolution established a Sanctions Committee--which 
consists of all members of the Security Council--to review information 
regarding individuals and entities and designate them for sanctions. A 
U.N. Panel of Experts will be formed, which will help the committee 
gather and review information about those who may meet the sanctions 
designation criteria. Based on the findings of the Panel of Experts and 
our own findings, we will propose relevant individuals for 
consideration by the Sanctions Committee.
    The resolution's credible threat of sanctions increases pressure on 
the parties to resolve the outstanding issues and begin a process that 
establishes the Transitional Government of National Unity. This 
incremental approach hones the efficacy of measures imposed and ensures 
continued buy-in and support from IGAD regional leaders.
    Under this resolution, the Council has also committed to 
periodically review the situation in South Sudan and, as deemed 
necessary, consider additional measures, including an arms embargo. The 
U.S. Government believes that actions based on this resolution should 
be calibrated to maximize the Council's leverage to facilitate an end 
to the horrific violence and promote the beginning of a sustainable 
settlement. We believe that an arms embargo could pressure both parties 
to negotiate earnestly.

    Question. How would you assess the capacity of U.N. peacekeepers in 
South Sudan to protect civilians? Do UNMISS forces currently have the 
capacity to go out on patrols and engage armed actors, if civilians are 
under imminent threat?

    Answer. UNMISS is mandated to protect civilians with support from 
its 11,669-person strong military force. This U.N. mission has four 
priorities: protection of civilians, monitoring and investigating human 
rights, creating the conditions for the delivery of humanitarian 
assistance, and supporting the implementation of the Cessation of 
Hostilities agreement.
    UNMISS has created seven protection of civilian sites for 
internally displaced persons and is protecting nearly 113,000 IDPs in 
these sites. The mission works very closely with the humanitarian 
community that provides assistance to the IDPs in these sites. Recent 
troop deployments from Kenya, China, and Ghana will enable UNMISS to 
conduct its protection tasks more effectively, including patrols and 
proactive community engagement. Inadequate infrastructure, difficult 
weather conditions, and access challenges posed by the armed conflict 
hinder UNMISS' ability to fully execute its mandate.

    Question. What additional leverage would an ``IGAD Plus'' bring to 
bear?

    Answer. ``IGAD Plus,'' as proposed by IGAD Chairman, Ethiopian 
Prime Minister Hailemariam Desalgn, envisions additional leverage on 
the warring parties though enhanced international participation and 
cooperation, bolstering the negotiation efforts of the current IGAD 
leadership. This includes participation by the African Union, which has 
selected five African heads of state for this purpose, the Troika 
(United States, United Kingdom, and Norway), the U.N., the EU, and 
China.
    IGAD leadership has worked tirelessly to broker a comprehensive 
peace agreement. While the two sides have moved closer to a deal in 
recent months, neither has agreed to peace. A reformed and 
reinvigorated ``IGAD Plus'' process would unite a number of 
stakeholders and members of the international community behind a common 
peace plan and give international partners a larger role in shaping 
process and substance. Ultimately, however, the decision to end this 
needless conflict and to begin the process of reform and rebuilding of 
South Sudan lies with the warring parties. The United States will 
continue to look for further opportunities to enhance the mediation 
process and will lead international efforts to bring additional 
pressure upon the parties to shift their concern toward the people of 
South Sudan, instead of their narrow political interests.

                               __________

  Responses of Cassandra Q. Butts, Nominated to be Ambassador to the 
Commonwealth of the Bahamas, to Questions from Members of the Committee

                 ambassador-designate butt's responses 
                   to questions from senator menendez
    Question. What are the most important actions you have taken in 
your career to date to promote human rights and democracy? What is the 
impact of your actions? Why were your actions significant?

    Answer. At every stage of my adult life I am proud to have worked 
to advance the cause of human rights at home and abroad. As a college 
student, I was one of the organizers of an advocacy campaign to end the 
University of North Carolina at Chapel Hill's investments in 
corporations that did business in apartheid South Africa. Our campaign 
was successful, and the effort foreshadowed a path to the end of the 
apartheid regime in South Africa and the direction of my professional 
life.
    My first job following law school was a fellowship with the 
Georgetown Women's Law and Public Policy Program, where I worked as a 
lawyer to advance access to quality health care for the poorest 
communities at the National Health Law Program. My focus included 
addressing the particular challenges facing impoverished women of 
color, including the incarcerated. Our work advanced efforts to expand 
treatment for women of color with HIV/AIDS and to eliminate the 
practice of shackling incarcerated women while giving birth.
    As a lawyer on Capitol Hill, I worked on civil rights issues and 
issues related to migration, asylum, and refugees. In the latter 
category, I traveled the world to view conditions for migrants, asylum 
seekers, and refugees in conflict and post-conflict zones working with 
the Department of State, the United Nations High Commissioner for 
Refugees, and a range of international NGOs to find durable solutions 
for some of the most vulnerable populations in the world. Through that 
work, we were able to provide critical oversight and increase the 
number of individuals accepted into the U.S. refugee resettlement 
program.
    My work at Millennium Challenge Corporation (MCC) over the past 4 
years has focused on advancing the values of democracy and human 
rights. As the chairperson of MCC's Investment Management Committee, I 
have overseen and approved investments of over $8 billion with partner 
countries that must prove a measured commitment to policy performance 
in the area of democratic governance and human rights. In my role, I 
have traveled to partner countries to the importance democratic 
governance and human rights to the work of poverty reduction through 
economic growth. In addition, my work at MCC has focused on advancing 
the agency's work on gender equality, ensuring that women and men are 
equal beneficiaries of our program is an international model for how to 
best integrate gender equality in development assistance.
    Finally, as a lawyer at the NAACP Legal Defense Fund, the Nation's 
premier civil rights legal advocacy organization, I litigated civil 
rights cases on issues of voting rights and education. In addition, I 
advocated on Capitol Hill and within the executive branch for the 
expansion of a range of basic human rights for women and minority 
communities.

    Question. What are the most pressing human rights issues in the 
Bahamas? What are the most important steps you expect to take--if 
confirmed--to promote human rights and democracy in the Bahamas? What 
do you hope to accomplish through these actions?

    Answer. The Bahamas has a strong tradition of protecting human 
rights. Bahamians enjoy freedoms of speech and religion, and Bahamian 
media is able to present the various sides of issues and frequently 
takes editorial positions critical of the government.
    The most pressing human rights concerns in the Bahamas center 
around the country's correctional and immigration detention facilities. 
Both are outdated, overcrowded, and do not meet the growing needs of 
the country. Local human rights organizations report of migration raids 
that ignore the rights of those they detain. The United States has 
provided training and technical assistance over the last 2 years under 
the Caribbean Basin Security Initiative (CBSI), which has improved 
conditions at the Bahamas Department of Correction's (BDOC) and 
enhanced BDOC's capacity to operate a sanitary, safe, and secure 
correctional facility in conformity with international standards.
    If confirmed, I will urge the government to take the steps 
necessary to improve conditions of detention and detention practices, 
both in terms of addressing immediate problems and in looking more 
systematically at modernizing and improving conditions over the medium 
to long term. I will also continue to apply U.S. assistance in these 
efforts where appropriate with the goal of bringing Bahamian facilities 
and procedures into full conformity with international human rights 
standards, practices, and procedures.
    Statelessness remains an issue, particularly in the case of second 
generation Haitian children born in the Bahamas who have access to 
neither Haitian nor Bahamian citizenship at birth. I commend the 
Bahamian Government for proposing a constitutional amendment allowing 
for Bahamian citizen women married to non-Bahamian husbands to pass on 
their Bahamian nationality to their children. Statelessness is also a 
concern for migrant children born in the Bahamas who, according to the 
constitution, have the right to apply for Bahamian citizenship at age 
18. The process to acquire citizenship is cumbersome and complex, and 
if confirmed, I will urge the government to both simplify the process 
and pass the constitutional amendment on gender equality before the end 
of 2015.

    Question. If confirmed, what are the potential obstacles to 
addressing the specific human rights issues you have identified in your 
previous response? What challenges will you face in the Bahamas in 
advancing human rights and democracy in general?

    Answer. Although considered a ``high income'' country by the World 
Bank, the Bahamas faces significant resource constraints which make 
building new detention centers or expanding existing facilities 
challenging. In addition to resource problems, the country also faces 
significant challenges in its judicial system. Despite some recent 
improvements, criminal cases can be prolonged, and a lengthy appeals 
process often adds additional time after a trial before a case is 
finalized.
    Societal and structural issues present the largest challenges to 
advancing human rights and democracy in general. The Bahamian 
Constitution protects against discrimination due to race, but societal 
prejudices exist, especially with regard to the Haitian immigrant 
community. The Bahamian Constitution and law currently do not prohibit 
discrimination based on gender, sexual orientation, or gender identity, 
and certain gender inequalities exist with regard to citizenship. The 
Christie administration has introduced constitutional amendments that 
would largely correct these deficiencies, but the process has stalled. 
If confirmed, I will continue to advocate for improvements to the 
justice sector and promote nondiscrimination and nonviolence toward 
vulnerable groups.

    Question. Are you committed to meeting with human rights and other 
nongovernmental organizations in the United States and with local human 
rights NGOs in the Bahamas?

    Answer. If confirmed, I will maintain a regular dialogue on human 
rights with all stakeholders, including human rights and other NGOs in 
the United States and local human rights NGOs in the Bahamas. In 
addition, if confirmed, I will engage in a frank dialogue with Bahamian 
officials on human rights issues, which will include bringing specific 
concerns to the attention of the government when it is appropriate to 
do so.

    Question. If confirmed, please describe steps that you will take to 
enhance effective implementation of Section 620M of the Foreign 
Assistance Act of 1961, commonly known as the Leahy amendment, within 
the Embassy in the Bahamas as well as steps you would take to 
accomplish the goal of the law, namely, helping the Government of the 
Bahamas end impunity for human rights violations by security forces.

    Answer. If confirmed, I will continue Embassy Nassau's current 
practice of ensuring that all Bahamian candidates for U.S. assistance 
are fully vetted in conformity with State Department and Defense 
Department procedures before any assistance is provided. I will ensure 
that the Embassy is diligent in denying assistance to Bahamian security 
force units when we have credible information that such units have 
committed gross violations of human rights. I will also press the 
Bahamian Government to establish an appropriate and transparent process 
to investigate allegations that government officials have engaged in 
human rights violations and to hold accountable those found to have 
done so.

                               __________
                ambassador-designate butts's responses 
                    to questions from senator flake
    Question. What do you see as the most significant challenges in 
relations with the Bahamas? What would be your priorities if confirmed 
as Ambassador?

    Answer. The United States and the Bahamas enjoy a long-standing 
cooperative relationship and security partnership. As one of our 
closest neighbors, our shared interests include improving citizen 
security and promoting shared prosperity through trade.
    If confirmed, I hope to continue working with the government of the 
Bahamas on efforts to strengthen citizen security, promote social and 
economic development, including advancing U.S. trade and investment 
interests, and reduce crime, including illicit trafficking and other 
transnational crime. If confirmed, I will encourage the Bahamas to take 
a more systemic approach to address the worsening crime situation. I 
hope to support efforts by the Bahamas to improve the education system 
and look at opportunities for workforce development. Other key 
priorities will be economic development and growth, including the 
attendant energy and environmental issues. Finally, I will ensure that 
the entire U.S. mission in the Bahamas--Bahamians and Americans--
understands that their contributions are valued and that they are 
appreciated.

    Question. The Bahamian economy was hard hit by the global financial 
crisis and has only registered meager economic growth rates over the 
past 3 years. What is the outlook for the Bahamian economy over the 
next few years? Is there any prospect that the Bahamas will diversify 
its economy beyond tourism and financial services?

    Answer. The Bahamas economy is projected to see real growth rise 
steadily to 2.8 percent by 2016 based on IMF forecasts. The government 
anticipates additional revenue from the new value-added tax that became 
effective on January 1, 2015, and the licensing and regulation of local 
gaming operations later in 2015. The Bahamas also expects economic 
boost from continued economic improvement in the United States, which 
is the Bahamas' largest trading partner and source of tourism dollars.
    The Bahamian Government faces significant challenges in 
diversifying its economy beyond tourism and financial services in the 
near future. New investments in the light manufacturing and technology 
sectors are hindered by high energy prices and limited availability of 
skilled labor. The government continues to promote investment in 
nontraditional sectors outside of tourism and financial services, and 
is also making efforts to promote the agriculture sector in an effort 
to mitigate the high cost of importing food. The government also has 
announced plans to offer new products within the financial services 
sector, such as the development of an international arbitration center 
and an offshore clearing and settlement center for international 
currencies, in the hopes of attracting greater trade and investment to 
the country.

    Question. U.S.-Bahamian cooperation on drug interdiction has been 
strong. Are there any further actions that the Bahamian Government can 
undertake to improve its antidrug efforts?

    Answer. The United States and the Bahamas enjoy a long-standing 
history of counternarcotics cooperation, most notably under the Drug 
Enforcement Administration (DEA) led Operation Bahamas, Turks and 
Caicos (OPBAT). Under OPBAT, DEA Special Agents coordinate, in an 
integrated manner, with the Royal Bahamas Police Force (RBPF) and the 
Royal Bahamas Defense Force (RBDF) to gather intelligence, conduct 
investigations, and execute interdictions. OPBAT seizure operations 
increased substantially between FY 2012 and FY 2014. We believe this is 
due, in part, to increased U.S. support, cooperation, and equipment.
    The Bahamian Government could impose stricter penalties on 
individuals convicted of serious drug offenses. In addition, the 
Bahamas continues to be challenged by delays in trials and in 
responding to U.S. extradition requests. Improved procedures to 
expedite extraditions would bring drug crime offenders more quickly to 
trial and serve as a more credible deterrent for traffickers. The 
Bahamas National Anti-Drug Strategy places significant emphasis on drug 
abuse, awareness, demand reduction, and treatment policies, but 
programs in these fields would benefit from additional resources. In 
addition, health care professionals report that women and residents of 
the Family Islands (i.e., islands other than New Providence) are 
underrepresented in substance abuse prevention and treatment programs.

                               __________

 Responses of Katherine S. Dhanani, Nominated to be Ambassador to the 
Federal Republic of Somalia, to Questions from Members of the Committee

               ambassador-designate dhanani's responses 
                    to questions from senator corker
    Question. What considerations, apart from the holding of elections, 
were taken into account when recognizing Somalia as a sovereign state 
in 2012? What additional considerations have been identified as crucial 
in moving to the nomination of an ambassador?

    Answer. U.S. recognition of the Federal Government of Somalia (FGS) 
on January 17, 2013, was the first step toward normalizing the U.S.-
Somalia bilateral relationship. The decision was in large part due to 
the relatively credible political transition after more than a decade 
of transitional governments. The provisional constitution and 
Parliament forged from the 2012 transition were the first steps toward 
rebuilding a sovereign Somali state. Recognizing the FGS signaled U.S. 
commitment to sustained diplomatic engagement with Somalia.
    The Department's decision to seek a Presidential Appointment of an 
ambassador was in recognition of the growing interagency engagement 
toward Somalia. Between FY 2006 and FY 2014, State and USAID provided 
nearly $3.1 billion in development, security, education, and 
humanitarian assistance. The level of U.S. assistance underscored the 
need to coordinate our Somalia engagement under an ambassador, to 
ensure that our relationship with the FGS best reflects our broad range 
of national security and foreign policy interests.

    Question. What specific parameters, including political 
reconciliation and security concerns, will be required by the United 
States to warrant a move of the Office of Somali Affairs/U.S. Embassy 
for Somalia in Nairobi, from its current location to Somalia? What is 
the best estimate or U.S. expectation of a move of our mission to 
Somalia? Would it be to Mogadishu in every instance or is there an 
intermediate location elsewhere?

    Answer. The Department of State does not have permanent diplomatic 
presence in Somalia due to continued instability and the high-threat 
environment in Mogadishu. After the December 25, 2014, al-Shabaab 
attack on the Mogadishu International Airport (MIA) compound, the 
Department is assessing what security upgrades need to be made to 
bolster MIA perimeter security and the internal compound utilized by 
U.S. diplomats. As security conditions permit, we look forward to 
broadening and deepening our engagement, and to reestablishing a 
permanent diplomatic presence in Mogadishu. As I mentioned in my 
testimony, there is no fixed timeline for the establishment of a 
permanent diplomatic presence in Mogadishu, but if confirmed, I will 
carefully monitor the security environment in Somalia and make the 
recommendation for a more enduring U.S. presence in Mogadishu, when the 
environment permits.

    Question. How do the positions of U.S. Special Representative for 
Somalia and Ambassador to Somalia differ, if at all? Will the role of a 
U.S. Special Representative be necessary upon the confirmation of an 
ambassador, and if so, what role will the SE play?

    Answer. The U.S. Special Representative for Somalia (SRS) is a 
secretarial appointee who manages the Department's relationship with 
the Federal Government of Somalia. The SRS, resident in Nairobi, also 
engages regional governments on Somalia--Burundi, Djibouti, Ethiopia, 
Kenya, and Uganda--given their national security interests in Somalia 
as troop contributing countries. The SRS does not have authority to 
direct and coordinate the actions of U.S. executive branch agencies in 
Somalia. As chief of mission, unless otherwise directed by the 
President, the U.S. Ambassador to Somalia will have full responsibility 
and authority for the direction, coordination, and supervision of all 
U.S. Government executive branch activities, operations, and employees 
in Somalia. The role of SRS will no longer be needed as the U.S. 
Ambassador to Somalia will maintain the regional coordination role 
given the level of international engagement in Somalia.

    Question. Yemen may prove a cautionary tale. In view of the 
unsuccessful efforts of significant U.S. military assistance and 
operational emphasis in Yemen to withstand political and militant 
unrest and in view of the ensuing instability, how will U.S. policy 
integration and coherence across USG agencies address current parallel 
efforts similar to those that existed in Yemen? What specific mechanism 
exists to harmonize U.S. policy governmentwide in moving Somalia toward 
sustainable governance and greater stability than it has had in 
decades? How will the U.S. role in partner efforts to help reestablish 
a viable government for Somalia change with an ambassador?

    Answer. U.S. policy in Somalia directly links security sector 
reform to political progress. Our Somalia strategy, previously shared 
with Congress, includes ways in which political development and 
security progress must move in tandem. U.S. policy is harmonized 
governmentwide through the White House directed interagency policy 
coordination process, and with our international partners via the New 
Deal Somali Compact.
    The United States and international partners support a regional 
force, the African Union Mission to Somalia (AMISOM), that enjoys broad 
international and regional support. AMISOM is composed of African troop 
contributors that have a strategic interest in stabilizing Somalia and 
as a result have initiated a number of military operations designed to 
pressure and erode al-Shabaab. AMISOM also has provided critical time 
and political space so the Somali political process can gain strength 
and the Federal Government of Somalia can begin to build a 
representative, apolitical, human rights respecting, professionally 
trained force under civilian oversight.
    In Yemen, there was no international or regional force like AMISOM 
that provided Yemen's leaders the time and space to find a peaceful 
solution to Yemen's political crisis, while at the same time 
maintaining security and putting pressure on al-Qaeda in the Arabian 
Peninsula.

    Question. What is the status of Somaliland and Puntland as it 
relates to U.S. policy? How do you expect the status to change, if at 
all, in the near to mid-term? What are your priorities for working with 
Somaliland and how will this translate into engaging Somalia?

    Answer. The United States recognizes a single Somalia, which 
includes Somaliland and Puntland. We are encouraged by the progress 
made in the integration of Puntland into the federal state formation 
process. While progress has stalled in regards to the formal, Turkey-
sponsored talks between Somaliland authorities and the Federal 
Government of Somalia (FGS), we continue to encourage dialogue between 
both parties.
    The United States regularly engages with all levels of the Somali 
Government, including the FGS, the newly established interim regional 
administrations, and the authorities in Puntland and Somaliland. If 
confirmed, my priorities at the regional level will be to promote 
security, good governance, and economic development, as well as to 
advance the state formation process.

    Question. The implementation of Vision 2016 is behind schedule. How 
will you apply pressure on the Somalia Government to complete the plan?

    Answer. While implementation of Vision 2016 is behind schedule, the 
Federal Government of Somalia (FGS) has made significant and important 
progress, especially in regards to advancing the state formation 
process. That said, time is short and the FGS has itself acknowledged 
that Vision 2016 is behind schedule.
    If confirmed, I will engage extensively with the President, Prime 
Minister, parliamentarians, and the regional governments, in close 
collaboration with our international partners, to push for a renewed 
focus on accelerating implementation of 
the Vision 2016 reform agenda. It is of paramount importance that the 
FGS move swiftly this year to lay the foundations for credible, 
democratic, and inclusive national elections in 2016, as well as for a 
constitutional referendum as envisioned by Vision 2016. The United 
States will maintain close engagement with the international community 
to ensure we have a coordinated approach to support the Somalis as they 
work towards 2016.

    Question. How will East Africa region's instability and the 
drawdown of Embassy personnel in Nairobi, Kenya, affect the movement 
and accessibility of the U.S. Ambassador to Somalia to travel and 
conduct business with the Government of Somalia, its citizenry and U.S. 
programming in Somalia while operating from Nairobi?

    Answer. The Somalia Unit, comprised of 21 personnel, was deemed to 
be of such strategic importance it was not reduced in size during the 
July 2014 drawdown of Embassy personnel in Nairobi, Kenya. The drawdown 
did not reduce staffing or programming operations of the Somalia Unit. 
If I am confirmed, the Department will transition the Somalia Unit to 
U.S. Mission Somalia and is in the process of determining the 
accompanying staffing footprint. As security conditions permit, U.S. 
officials will maintain regular travel into Somalia to conduct official 
business and promote our foreign policy objectives.
                                 ______
                                 
              ambassador-designate dhanani's responses to 
                    questions from senator menendez
    Question. What are the most important actions you have taken in 
your career to date to promote human rights and democracy? What is the 
impact of your actions? Why were your actions significant?

    Answer. Throughout my career, I have advanced U.S. interests in the 
promotion of human rights. In my current assignment in the Africa 
Bureau, I lead the office responsible for coordinating the Bureau's 
efforts to promote human rights throughout the continent. Our 
activities include, for example, ensuring that recipients of security 
assistance have clean human rights records; promoting atrocity 
prevention; promoting fair, credible, and peaceful elections; and 
defending the human rights of LGBT persons. We coordinate the Country 
Reports on Human Rights Practices, Trafficking in Persons Reports, and 
International Religious Freedom Reports for African countries. As 
consul general in Hyderabad, India, my team's activities included 
partnering with the private sector to sponsor training for disabled 
adults, promoting local nongovernmental organizations' projects to 
economically empower women in lower income Muslim communities, 
supporting efforts to combat HIV/AIDS stigma, and persuading local 
police to rescind an order banning a rainbow film festival. In Gabon 
our human-rights-related activities included a public program 
highlighting abuses committed as part of rituals to enhance political 
success and in Zambia we were particularly active in responding to the 
humanitarian needs of refugees, including projects aimed at protecting 
teenage refugee girls from sexual abuse and exploitation.
    My actions to promote human rights were particularly important 
during my service as deputy chief of mission in Zimbabwe. The U.S. 
Embassy's programs directly assisted thousands of Zimbabweans whose 
human rights were abused by the regime, and our efforts to expose abuse 
changed the course of events surrounding the 2008 election. When U.S. 
Government-supported election monitoring made stealing the election 
impossible during a first round of voting, the Government of Zimbabwe 
launched a campaign of violence and intimidation to ensure that the 
ruling party would prevail during a runoff. The U.S. mission in 
Zimbabwe already supported a network of partners to provide medical 
care, psychological counseling, and legal counsel to victims of torture 
and other human rights abuses. When the scale and severity of abuse 
expanded dramatically, we led an international effort to protect 
victims and expose abusers. In addition to supporting shelters and 
services for internally displaced persons (IDPs), we interviewed scores 
of individuals who had been beaten and burned out of their homes to 
identify individuals at risk of further political persecution for 
targeted support. The Embassy led the diplomatic community in visits to 
torture camps, defying police roadblocks. On July 3, 2008, hundreds of 
IDPs who had been forced to leave a shelter arrived at the U.S. Embassy 
seeking refuge. We scrambled to identify alternative shelters for the 
women and children, and provided blankets and hot meals for over 150 
men that winter night. The USAID Director and I spent July 4 
identifying and setting up a shelter on a farm outside the city, where 
we identified partners able to meet the IDPs' basic needs in the 
ensuing weeks. Independent media and watchdog groups who enjoyed our 
support provided us with documentation of the regime's abuses which we 
shared throughout the region, convincing Zimbabwe's neighbors that this 
time they could not turn a blind eye to the Mugabe regime's crimes. As 
a result, the ruling party recognized that it would be unable to steal 
the runoff, and invited the opposition into a coalition.
    I was proud to lead the team at U.S. Embassy Harare who 
demonstrated the tremendous compassion and empathy of the American 
people under the most trying circumstances, making a difference in both 
the lives of individual Zimbabweans and the course of public events.

    Question. What are the most pressing human rights issues in 
Somalia? What are the most important steps you expect to take--if 
confirmed--to promote human rights and democracy in Somalia? What do 
you hope to accomplish through these actions?

    Answer. If I am confirmed, working with the African Union, 
Government of Somalia, and Somali civil society to improve protection 
of civilians will be central to my engagement. Violence against women 
and girls, including rape, remains a pervasive problem. I will work 
with Somali and international counterparts including AMISOM to improve 
protection efforts, including ensuring that women can access the 
services they need and perpetrators are held accountable. I am also 
deeply concerned about the situation of media freedom in Somalia. The 
country remains one of the most dangerous places to be a journalist. I 
will regularly discuss protection concerns with Somali journalists 
themselves, speak out against abuses against journalists, and strongly 
encourage the Somali Government to fully respect freedom of expression. 
In addition, I will work with Somalia and the United Nations to further 
implementation of Somalia's action plan to end the use and recruitment 
of child soldiers and standardize operating procedures for the 
reception and handover of children separated from armed groups.

    Question. If confirmed, what are the potential obstacles to 
addressing the specific human rights issues you have identified in your 
previous response? What challenges will you face in Somalia in 
advancing human rights and democracy in general?

    Answer. Key challenges to addressing human rights concerns in the 
country include continued insecurity in al-Shabaab-controlled portions 
of the country. This limits not only U.S. Government access to much of 
the country, but also access by international and local partners who 
could provide information that is vital to addressing human rights 
concerns. Human rights organizations have identified the lack of data 
on the situation in much of the country as problematic.
    Improving civilian protection while conflict continues is extremely 
challenging, but it will be central to my efforts. Attacks, including 
direct attacks on civilians, continue to result in deaths, injuries, 
and displacement. Somali women and girls experience systematic 
marginalization, which makes it difficult to address gender-based 
violence and sexual exploitation. Women are reluctant to report abuse 
due to possible reprisals, and police are reluctant to investigate. The 
Government has arrested alleged rape victims. Authorities rarely used 
formal procedures to address rape. Improving protection for journalists 
is challenging in part due to the continued insecurity and presence of 
al-Shabaab. Also challenging is that the Government of Somalia and 
regional authorities continue to arrest, detain, and prosecute 
journalists. In regards to child soldiers, the government has taken 
additional steps to implement its action plan with the U.N., though, 
overall, implementation of the plan has been limited. More also needs 
to be done to improve demobilization, rehabilitation, and reintegration 
efforts for children separated from armed groups.

    Question. Are you committed to meeting with human rights and other 
nongovernmental organizations in the United States and with local human 
rights NGOs in Somalia?

    Answer. If confirmed, one of my most important goals as U.S. 
Ambassador to Somalia will be improving respect for human rights in the 
country, so that all Somalis have the opportunity to exercise their 
fundamental freedoms and live their lives without fear. My efforts will 
include those focused on improving civilian protection, strengthening 
efforts to address rape, building respect for media freedom, and 
ensuring that children are not used as soldiers. Human rights and other 
NGOs are critical to this work and I look forward to meeting with them, 
if I am confirmed.

    Question. If confirmed, please describe steps that you will take to 
enhance effective implementation of Section 620M of the Foreign 
Assistance Act of 1961, commonly known as the Leahy amendment, within 
the Embassy as well as steps you would take to accomplish the goal of 
the law, namely, helping the Government of Somalia end impunity for 
human rights violations by security forces.

    Answer. The Leahy laws are based on a basic principle: A government 
security apparatus' respect for human rights bolsters its legitimacy 
and trustworthiness in the eyes of the people it is supposed to 
protect, and enhances its ability to protect. Moreover, holding 
violators accountable fortifies the rule of law, which will be key in 
our efforts to improve governance in Somalia. If confirmed, the Embassy 
staff and I will convey this message in all our interactions with the 
FGS. In terms of implementation, the Embassy and the Department vet all 
individuals and units of the security services; if confirmed, I will 
ensure that our vetting continues to be comprehensive, thorough, and in 
full compliance with the Leahy laws, and that those who violate human 
rights are restricted from training. Furthermore, I will strongly urge 
the FGS to hold all violators accountable for their actions.

    Question. In your written testimony, you mention the importance of 
building Somali institutional capacity. The U.S. Government has spent 
considerable time and resources in training the Somali national army as 
part of its Somalia strategy. The U.S strategy toward sub-Saharan 
Africa states that as part of security sector reform, the United States 
will build security forces that ``are subordinate to and operating 
jointly with their constitutional civil authorities.''

   a. What programs are currently underway to build up the 
        civil authorities in Somalia? What is the status of current 
        efforts to build the capacity of the Somali Ministry of 
        Defense? What plans do we have to build capacity in the 
        judiciary and civilian oversight organizations that can provide 
        oversight of the Somali National Army?

    Answer. The United States has supported the development of the 
Ministry of Defense (MOD) by refurbishing the MOD headquarters at 
Gashandiga in Mogadishu, as well as providing a contract advisor who 
works with the Defense Minister at the MOD on a daily basis. Other 
donors are also participating in the effort to build the capacity of 
the MOD, including the European Union. We intend to expand our support 
to the MOD in the coming years, to include additional training, 
advisory support, and material support. Our assistance will reflect the 
absorptive capacity of the MOD, and complement the efforts of other 
donors. We are designing this support in coordination with other donors 
to strengthen civilian oversight of the military sothat respect for 
human rights and inclusivity become well entrenched.

   b. What tools were used to assess the requirements of the 
        Somali National Army and what is the plan for monitoring and 
        evaluating our current efforts in keeping with the policy 
        guidelines contained in Presidential Policy Directive 23?

    Answer. Defining the requirements of the Somali National Army (SNA) 
has been an iterative process involving inputs and analysis from across 
the U.S. interagency, the AU Mission to Somalia (AMISOM), other donors 
involved in the effort to develop the SNA, U.S.-funded advisors 
embedded with the SNA and MOD, and, most importantly, the Somalis 
themselves. Program monitors in Mogadishu, augmented by U.S. Government 
personnel's visits, ensure programming is being provided in line with 
U.S. Government regulations and objectives.

   c. How is the United States coordinating with other donors 
        in the security sector?

    Answer. U.S. support to the Somali security services is coordinated 
by regular working group meetings within the framework of the New 
Deal's Peacebuilding and Statebuilding Group Two (PSG-2). PSG-2 and the 
subworking groups that fall under it, is the primary vehicle for 
coordinating international community support directly with the Federal 
Government of Somalia, the U.N., the AU, and other partners.

   d. What is the administration doing to build government 
        capacity to administer or provide social services in Mogadishu 
        and areas which have been liberated from al-Shabaab?

    Answer. The United States is helping the Federal Government of 
Somalia (FGS) define, coordinate, and manage the frameworks for 
national programs within the Office of the President, National Security 
Advisor, and the Ministry of Interior and Federalism. We support the 
Federal Government of Somalia to increase inclusiveness of political 
processes and facilitate the delivery of critical services in newly 
liberated areas, including training national and regional Parliaments 
to increase their oversight role through the Transition Initiatives for 
Stabilization from USAID. The United States helped the FGS understand 
the utility of initiating local-level reconciliation and civic 
dialogues in areas liberated from al-Shabaab, as a means to prevent new 
conflicts from erupting in the aftermath of liberation.
    In FY 2014, the administration provided more than $58.3 million in 
development assistance to Somalia to promote peace and stability, 
foster good governance, spur economic growth and job creation, improve 
transparency and accountability, support institutional development, and 
increase the responsiveness of government institutions at the federal, 
regional, and local levels. The United States is supporting Somalia's 
Ministry of Education to help develop an Education Sector Strategic 
Plan. Development of this national plan will build government capacity 
to deliver improvements in educational quality and services across the 
country.

    Question. Regarding the Somali Federal Government's Vision 2016 
agenda, you mentioned that many deadlines have already been missed and 
that the international community continues to encourage the federal 
government to adhere to the roadmap.

   a. What is the status of constitutional development in 
        Somalia?

    Answer. The Somali parliamentary constitutional review committee 
has begun to advise the recently established Independent Constitutional 
Review Implementation Commission (IRIC), on chapters one and four of 
the constitution which address the critical issues of the status of 
Mogadishu in the state formation process and the electoral law. The 
Speaker of Parliament informed us that he intends to expedite the 
review process during the next session of Parliament (technically 
scheduled to open the week of April 20).

   b. What is the status of discussions about federalism and 
        the integration of semiautonomous regions such as Somaliland?

    Answer. The state formation process to build a federal system in 
Somalia is currently underway. Interim administrations, precursors to 
formal federal states, are now in place in Jubbaland and the South West 
region, and a reconciliation process is currently underway in the 
central regions. The Federal Government of Somalia and Puntland signed 
an agreement in October 2014 to pave the way for Puntland's recognition 
as a federal member state. To accelerate the federalism process, 
Mogadishu and the regional leaders recently created the Somali 
Leadership Forum to discuss key issues, including regional security 
force integration, 2016 elections, and the state formation process. 
Somaliland maintains its unilaterally declared independence from 
Mogadishu, but has engaged in Turkish-sponsored talks on issues 
requiring cooperation, such as airspace management.

                               __________
               ambassador-designate dhanani's responses 
                    to questions from senator flake
    Question. What are the prospects for Somalia to hold elections as 
expected in 2016? Given the political infighting and insecurity, will 
it be possible to hold a nationwide constitutional referendum and 
elections next year?

    Answer. The United States continues to support the Federal 
Government of Somalia's Vision 2016 agenda, which includes holding 
national elections in 2016. The Federal Government of Somalia (FGS) 
itself has acknowledged that Vision 2016 is behind schedule. We 
consistently urge the FGS to accelerate the pace of reform and to put 
in place the institutions, laws, and processes necessary to meet its 
Vision 2016 goals.

    Question. Given that the current central government was largely 
appointed and selected to overcome internal rivalries, do you think 
these elections will be viewed as credible and legitimate in the eyes 
of the Somali people?

    Answer. The United States supports Somalia's state formation 
process, currently underway, which will lay the foundation for a more 
representative government. We continue to urge the Somali Government to 
begin the process to review the interim constitution and present a 
final version for its citizens to approve in a national referendum by 
early 2016. USAID's democracy and governance program in Somalia 
strengthens regional and national parliaments to perform oversight and 
to develop legislation, particularly as regards the legal framework 
necessary for credible and legitimate referenda and electoral 
processes. If confirmed, I will continue to press the Government of 
Somalia urgently to take steps toward inclusive and democratic 
elections. As Somalia continues to develop inclusive political 
institutions, its leaders must support the ability of citizens to 
choose their own government through periodic free and fair elections.

    Question. How would you characterize al-Shabaab's relationship with 
al-Qaeda, Al Qaeda in the Arabian Peninsula, and the Islamic State, 
respectively?

    Answer. Al-Shabaab publicly announced its merger with al-Qaeda in a 
February 2012 statement in which they pledged loyalty to al-Qaeda 
leader Ayman al-Zawahiri. Al-Shabaab is not related to ISIS, although 
there have been reports of ethnic Somalis, not affiliated with al-
Shabaab, fighting alongside extremist groups in Syria and Iraq. Al 
Qaeda in the Arabian Peninsula, like al-Shabaab, is an al-Qaeda 
affiliate.

    Question. What is the anticipated timeline for establishing an 
embassy in Mogadishu? What are the challenges with the current system, 
in which U.S. diplomats and USAID personnel travel back and forth from 
Kenya?

    Answer. We look forward to broadening and deepening our engagement 
and to reestablishing a permanent diplomatic presence in Mogadishu. 
Currently, chief of mission personnel travel to Mogadishu and other 
locations in Somalia as security conditions permit. Establishment of a 
permanent diplomatic presence in Mogadishu will represent the 
culmination of this recognition process, but there is no fixed timeline 
for achieving this objective.

    Question. The State Department budget justification includes a 
request for $110 million to support African Peacekeeping Rapid Response 
Partnership (APRRP). According to the CBJ, the program would ``build 
rapid peacekeeping response capabilities in Ethiopia, Ghana, Rwanda, 
Senegal, Tanzania, and Uganda.''

   (a). How does this proposal compare to existing training 
        programs, including African Contingency Operations Training and 
        Assistance (ACOTA) Program?

    Answer. APRRP assistance will complement but not replace existing 
peace operations capacity-building programs, such as the Global Peace 
Operations Initiative (GPOI), the Africa Contingency Operations 
Training and Assistance (ACOTA) program (which is funded predominantly 
through GPOI), and the International Police Peacekeeping Operations 
Support (IPPOS) program. GPOI and IPPOS emphasize broader, global 
capacity-building efforts focused on addressing a wider range of 
international peace operations shortfalls and strengthening the 
effectiveness of U.N. and regional missions. APPRP partners have and 
may continue to receive training through these other programs as well.

   (b). How would you see the program impacting troop 
        contributing countries effectiveness in ongoing operations?

    Answer. APRRP will focus on developing the capabilities of partner 
nations to deploy forces rapidly in support of an AU or U.N.-mandated 
operation. APRRP will inject targeted resources to address specific 
gaps in peacekeeping rapid response capabilities in the selected 
partner countries. With this specific goal in mind, APRRP works with a 
set of proven partners to emphasize training and provision and 
maintenance of equipment to enable rapid deployment and sustainment. 
While facilitating rapid deployment is the primary focus of the 
program, we anticipate that the improved specialty capabilities and 
institutional capacity provided through APRRP have the potential to 
benefit ongoing operations as well.

   (c). As you know, reports implicated Ugandan and Burundian 
        troops participating in AMISOM of raping civilians. Would APPRP 
        include modules aimed at protecting civilians? Would, if not 
        how, do you guard against reputational risk to the U.S. from 
        being associated with their training?

    Answer. We are greatly concerned about the reports of sexual 
exploitation and abuse by AMISOM forces. The United States immediately 
engaged with the African Union and the Governments of Uganda and 
Burundi to urge them to undertake a credible and transparent 
investigation into the alleged incidents immediately. Ugandan and 
Burundian forces deploying to AMISOM currently receive substantial 
training related to human rights and protection of civilians through 
the Africa Contingency Operations Training and Assistance (ACOTA) 
program and counterterrorism training funded through section 2282. We 
are continuously looking at ways to improve this training, including in 
response to the reports of sexual exploitation and abuse. That training 
will need to focus not only on increased awareness of sexual 
exploitation and abuse, but also on improving the capacity of the 
contingents to investigate allegations and hold perpetrators 
accountable.
    We intend to keep APRRP focused on developing specialized 
capabilities and enabling units required to facilitate rapid deployment 
(including logistics, engineering, equipment maintenance, transport, 
intelligence, and medical capabilities), and, therefore, we do not 
expect protection of civilians to be a primary focus of the APRRP-
funded training events. This is not because protection of civilians is 
unimportant, but rather because these topics are already being 
addressed through the existing predeployment training initiatives 
funded through the Global Peace Operations Initiative (like ACOTA) and 
section 2282. We intend APRRP to complement, not replace existing 
training initiatives.

                               __________


                              NOMINATIONS

                              ----------                              


                         TUESDAY, MAY 19, 2015

                                       U.S. Senate,
                            Committee on Foreign Relations,
                                                    Washington, DC.
                              ----------                              

Mileydi Guilarte, of the District of Columbia, to be United 
        States Alternate Executive Director of the Inter-
        American Development Bank
Jennifer Ann Haverkamp, of Indiana, to be Assistant Secretary 
        of State for Oceans and International Environmental and 
        Scientific Affairs
Marcia Denise Occomy, of the District of Columbia, to be United 
        States Director of the African Development Bank for a 
        term of five years
Sunil Sabharwal, of California, to be United States Alternate 
        Executive Director of the International Monetary Fund 
        for a term of two years
Brian James Egan, of Maryland, to be Legal Adviser of the 
        Department of State
                              ----------                              

    The committee met, pursuant to notice, at 2:45 p.m., in 
room SD-419, Dirksen Senate Office Building, Hon. John 
Barrasso, presiding.
    Present: Senators Barrasso, Corker, Gardner, Udall, Cardin, 
Murphy, and Markey.

           OPENING STATEMENT OF HON. JOHN BARRASSO, 
                   U.S. SENATOR FROM WYOMING

    Senator Barrasso. Well, good afternoon. Congratulations. I 
would like to call to order this hearing of the United States 
Senate Committee on Foreign Relations.
    The committee is meeting today to examine the nomination of 
five individuals to serve our country's interests in 
international financial institutions in the State Department.
    Again, congratulations on your nominations to these 
important positions. I want to welcome all of you and extend a 
warm welcome, on behalf of the committee, to all your families 
and friends who are here. And I hope that, when you get a 
chance to testify, each of you will introduce others that are 
here supporting you from your family.
    Should you serve our Nation in these important positions, 
it is critical that each of you provide strong stewardship of 
American taxpayer resources, demonstrate professionalism and 
good judgment, and vigorously work to advance the priorities of 
the United States.
    During your testimony, I hope each of you will lay out your 
vision and goals for the positions to which you have been 
nominated for, and your plan to achieve them.
    Joining us this afternoon are five nominees. I am pleased 
to introduce them to the committee.
    Mileydi Guilarte, who is been nominated to be the United 
States Alternate Executive Director of the Inter-American 
Development Bank. And she is currently serving as the 
International Cooperation Specialist in the Bureau for Latin 
America and the Caribbean at the United States Agency of 
International Development. She previously worked at the United 
Nations, the World Bank, and the International Monetary Fund.
    Jennifer Haverkamp is the nominee to be Assistant Secretary 
of State for Oceans and International Environmental and 
Scientific Affairs. Ms. Haverkamp is currently an independent 
consultant and lecturer at George Washington University Law 
School. She has previously worked for the Environmental Defense 
Fund, serving as the Director of International Climate Program 
and the Managing Director for International Policy.
    Marcia Occomy is the nominee to the be United States 
Director of the African Development Bank for a term of 5 years. 
She is currently a specialist leader at Deloitte Consulting and 
has been with Deloitte since 2009, where she has worked with 
the United States Agency for International Development on 
various assignments.
    Sunil Sabharwal is the nominee to be the United States 
Alternate Executive Director of the International Monetary Fund 
for a term of 2 years. He is an independent investor and 
consultant in the international payment sector since 2006. 
During his career, he has worked at the European Bank for 
Reconstruction and Development, and held senior positions at 
First Data Corporation, Western Union, and GE Capital.
    And then Brian Egan has been nominated for the position of 
Legal Adviser at the Department of State. He is currently 
working as Legal Adviser to the National Security Council, 
Deputy Assistant to the President, and Deputy Counsel to the 
President. In addition to previously working with the national 
security staff at the White House, he has also served as an 
attorney adviser at the Office of Legal Adviser of the 
Department of State.
    Now I want to turn to the Ranking Member, Senator Udall, to 
offer his opening remarks.

             OPENING STATEMENT OF HON. TOM UDALL, 
                  U.S. SENATOR FROM NEW MEXICO

    Senator Udall. Thank you very much, Chairman Barrasso, for 
holding this hearing. And I, too, want to welcome our nominees 
who are with us this afternoon. We have five well-qualified 
candidates with impressive resumes being considered today.
    As most of you know, our subcommittee's jurisdiction covers 
a lot of ground, some would say from the ocean floor out to 
space. The Bureau of Oceans and International Environmental and 
Scientific Affairs, I think, would agree with that. Their work, 
ranging from environmental issues, such as climate change, to 
emerging issues, such as space, is crucial to our foreign 
policy. Congress has a vital interest in international 
institutions to promote economic growth, to support the 
development of international law, to support strong 
environmental standards and improve security and lives. All 
serve to strengthen social and international development and 
further important objectives of U.S. foreign policy.
    The nominations we are considering today provide an 
excellent opportunity for the United States to continue to work 
closely with the international community. Our participation in 
the international development organizations help shape the 
discussions in multilateral forums to reflect U.S. priorities 
and interests, and also ensure that organizations like the 
Inter-American Development Bank, the African Development Bank, 
and the International Monetary Fund are well equipped to 
succeed in their missions. Those missions are essential to 
promote security, economic prosperity, and advocate for 
healthier lives through science and partnerships. That is a 
responsible course and brings greater stability, not only to 
specific regions around the world, but throughout the world.
    So, I look forward to our discussions here today with this 
impressive list of nominees.
    Thank you, Mr. Chairman. And I would yield back.
    Senator Barrasso. Thank you.
    Senator Cardin, anything you would like to add?
    Senator Cardin. Thank you, Mr. Chairman.
    I just really want to welcome our nominees, thank you for 
your public service, your willingness to serve, and I also 
thank your families.
    Senator Barrasso. Thank you both.
    And all of the positions that the committee is discussing 
today are very important. I look forward to hearing the 
testimony.
    Your full statements will be entered into the record in 
their entirety. And I ask that you try to summarize your 
testimony in about 5 minutes in order for members to have an 
opportunity to ask questions. Other members may be joining us 
at different times during the hearing. And again, please feel 
free to introduce your family members who are here today 
offering their support.
    And, with that, Ms. Guilarte, may we please start with you?

 STATEMENT OF MILEYDI GUILARTE, NOMINATED TO BE U.S. ALTERNATE 
   EXECUTIVE DIRECTOR OF THE INTER-AMERICAN DEVELOPMENT BANK

    Ms. Guilarte. Thank you, Chairman.
    Chairman Barrasso, Senator Udall, members of the committee, 
thank you for the opportunity to appear before you today.
    I am honored that President Obama nominated me to serve as 
the Alternate Executive Director at the Inter-American 
Development Bank. I am also grateful to Secretary Lew and 
Assistant Secretary Marisa Lago for supporting me.
    I am also grateful to my family, friends, and colleagues 
that are present today for their love, encouragement, and 
unwavering support. I would like to acknowledge my mother, 
Zenaida Guilarte, who is with me today.
    If confirmed, I will bring to the IDB a deep understanding 
of Latin America, solid experience with international 
development, and a strong belief in the value of public 
service, and the commitment to relentlessly promote U.S. 
interests in the region.
    Representing the United States at the IDB, an institution 
created to support the economic and social development of Latin 
America, is a humbling yet vital undertaking. If confirmed, I 
would be the first Latina in nearly 30 years to hold this 
important position.
    Since I appeared before this distinguished committee a year 
ago, I have continued to strengthen my experience and 
engagement in Latin America at the United States Agency for 
International Development, primarily working on our response to 
last summer's surge of unaccompanied minors from Central 
America. Addressing the interrelated economic, political, and 
security challenges facing the region, and their consequences, 
are critical to the national security interests of the United 
States. If confirmed, I hope to continue supporting this 
difficult and challenging task.
    Let me take the opportunity to tell you a little bit about 
my background, which has helped shape how I came to pursue a 
career in international development.
    Born in Cuba, I left Havana for the United States at an 
early age with my family in search of a better life with only a 
single blue suitcase in our hands. I spent my formative years 
in Miami, where I worked side by side with my parents in flea 
markets each weekend to help make ends meet. These experiences 
taught me the values of discipline and hard work. I was the 
first member of my family to graduate from college. And I feel 
deeply blessed to have prospered in America.
    While in graduate school, I focused on developing a social 
academic foundation to understand economic, political, and 
social issue as they impact development and democracy. After 
graduation, my deep commitment to the promotion of democracy 
and human rights led me to work and live in various countries 
around the world.
    Through these experiences, I deepened my leadership skills 
and learned how critical the interaction between financial 
institutions, donor, and civil society are in the development 
of the world's poorest nations. At the World Bank and at the 
United Nations, I worked on conflict prevention, humanitarian 
assistance, and strengthening the emerging democracies. Most 
recently, at the United States Agency for International 
Development, I have worked on our response to address the root 
causes of the influx of unaccompanied minors while at the same 
time contributed to the interagency process that produced the 
administration's proposed $1 billion request for Central 
America. These experiences allow me to appreciate the 
challenges of working within complex multilateral institutions 
and develop the skills to help promote effective initiatives in 
that environment.
    Thinking about Latin America has been a constant throughout 
my life. The opportunity to represent our great country at the 
Inter-American Development Bank is a particular honor for me as 
an American born in Latin America. If confirmed, I will work 
diligently to advance U.S. objectives at the IDB by carefully 
stewarding the resources of U.S. taxpayers and by promoting 
greater accountability, transparency, and effectiveness.
    I look forward to working closely with the members of this 
committee and your staff. Thank you for your consideration. And 
I look forward to answering any questions you might have.
    [The prepared statement of Ms. Guilarte follows:]

                 Prepared Statement of Mileydi Guilarte

    Chairman Barrasso, Senator Udall, members of the committee, thank 
you for the opportunity to appear before you today. I am honored that 
President Obama nominated me to serve as the Alternate Executive 
Director at the Inter-American Development Bank. I am also grateful to 
Secretary Lew and Assistant Secretary Marisa Lago for supporting me.
    I am also grateful to my family, friends, and colleagues [that are 
present today], for their love, encouragement, and unwavering support. 
I specially would like to thank my mother, Zenaida, for inspiring me to 
be better each day.
    If confirmed, I will bring to the IDB a deep understanding of Latin 
America, solid experience with international development, a strong 
belief in the value of public service, and the commitment to 
relentlessly promote the U.S. interests in the region.
    Representing the United States at the IDB, an institution created 
to support the economic and social development of Latin America, is a 
humbling yet vital undertaking. If confirmed, I would be the first 
Latina in nearly 30 years to hold this important position.
    Since I appeared before this distinguished committee a year ago, I 
have continued to strengthen my experience and engagement in Latin 
America at the United States Agency for International Development, 
primarily working on our response to last summer's surge of 
unaccompanied minors from Central America. Addressing the interrelated 
economic, political and security challenges facing the region and their 
consequences, are critical to the national security interests of the 
United States. If confirmed, I hope to continue supporting this 
difficult and challenging task.
    Let me take the opportunity to tell you a little bit about my 
background, which has shaped how I came to pursue a career in 
international development. Born in Cuba, I left Havana for the United 
States at an early age with my family in search of a better life with 
only a single blue suitcase in our hands. I spent my formative years in 
Miami, where I worked side by side with my parents in flea markets each 
weekend to help make ends meet. These experiences taught me the values 
of discipline and hard work. I was the first member of my family to 
graduate from college, and I feel deeply blessed to have prospered in 
America.
    While in graduate school, I focused on developing a solid academic 
foundation to understand economic, political and social issues as they 
impact development and democracy.
    After graduation, my deep commitment to the promotion of democracy 
and human rights led me to work and live in various countries around 
the globe. Professionally, I have worked in countries as diverse as 
India, East Timor, the Philippines, and the Republic of the Maldives. 
Through these experiences, I deepened my leadership skills and learned 
how critical the interaction between financial institutions, donors and 
civil society are in the development of the world's poorest nations.
    At the World Bank and at the United Nations, I worked on conflict 
prevention, humanitarian assistance, and strengthening emerging 
democracies. Most recently, at the United States Agency for 
International Development, I have worked on our response to address the 
root causes of the influx of unaccompanied minors, while at the same 
time contributed to the interagency process that produced the 
administration's proposed $1 billion request for Central America. These 
experiences allowed me to appreciate the challenges of working within 
complex multilateral institutions and develop the skills to help 
promote effective initiatives in that environment.
    Thinking about Latin America has been a constant throughout my 
life. The opportunity to represent our great country at the Inter-
American Development Bank is a particular honor for me as an American 
born in Latin America.
    If confirmed, I will work diligently to advance U.S. objectives at 
the Inter-American Development Bank by carefully stewarding the 
resources of the U.S. taxpayer and by promoting greater accountability, 
transparency and effectiveness. I look forward to working closely with 
the members of this committee and your staff.
    Thank you for your consideration, and I look forward to answering 
any questions you might have.

    Senator Barrasso. Thank you so very much for your 
testimony.
    Ms. Guilarte. You are welcome.
    Senator Barrasso. Thank you.
    Ms. Haverkamp.

        STATEMENT OF JENNIFER ANN HAVERKAMP, NOMINATED 
         TO BE ASSISTANT SECRETARY OF STATE FOR OCEANS 
        AND INTERNATIONAL ENVIRONMENTAL AND SCIENTIFIC 
                            AFFAIRS

    Ms. Haverkamp. Thank you, Mr. Chairman and Ranking Member 
Udall and distinguished members of the committee. It is a great 
privilege for me to appear before you today as President 
Obama's nominee for Assistant Secretary of State for the Bureau 
of Oceans and International Environmental and Scientific 
Affairs.
    With your permission, I have a longer statement for the 
record.
    I am deeply grateful to President Obama and Secretary Kerry 
for placing their trust in me for this position. And I look 
forward to again working with Under Secretary Novelli, my 
former colleague from the Office of the U.S. Trade 
Representative. If confirmed, I very much look forward to 
working with the Congress, and with this committee in 
particular, to advance U.S. interests through our global 
environmental, scientific, and health diplomacy.
    I am also deeply grateful to my family, my support and 
inspiration. With me here today are my husband, Jeff Kehne, my 
father- and mother-in-law, Bruce and Elizabeth Kehne, and my 
niece, Meagan Haverkamp. Our two children, Gregory and 
Adrianne, very much wish they could be here, but they are busy 
wrapping up their end-of-semester college activities far from 
Washington.
    My parents, were they still alive, would have been 
enormously proud. My father, a college educator who served as a 
U.S. Navy lieutenant in World War II in the Pacific, and my 
mother, a teacher and homemaker who raised six children, 
believed deeply in the importance of education, hard work, and 
public service.
    I am energized and eager to return to government and put my 
experience to work advancing American priorities and values. I 
would bring to the position a science background, having 
majored in biology in college and published ecological field 
research. I have dedicated most of my career to public service, 
and have worked for the last 22 years in the international 
realm. I served as the Assistant U.S. Trade Representative for 
Environment and Natural Resources for most of my 10 years at 
USTR, and, before, held positions of responsibility at the 
Department of Justice, the Environmental Protection Agency, and 
the U.S. Court of Appeals. More recently, I have worked and 
served on boards in the nonprofit sector, with a focus on 
finding practical solutions to confront climate change, 
conserve tropical forests, and advance clean energy.
    I believe many aspects of my experience, especially at 
USTR, will have relevant parallels in the work of OES. These 
include strengthening the United States domestically through 
international engagement, finding ways to advance U.S. economic 
interests while protecting our environmental values, and 
promoting health and prosperity abroad, and leveling the 
playing field for U.S. companies through advancing 
environmental protections in other countries.
    Turning to OES: Four decades ago, this Congress created the 
Bureau and gave it broad responsibilities for complex and 
consequential issues. In the years since, OES's signature 
issues of science, technology, and innovation, environment, 
oceans, and health have all played increasingly significant 
roles in strengthening the U.S. economy, advancing our foreign 
policy objectives, and buttressing our leadership positions 
around the world.
    If confirmed by the Senate, my priorities would be 
interwoven and would encompass the themes of investments, 
innovation, and inspiration.
    First, investments. I would continue and build upon the 
strong and effective investments Secretary Kerry is making in 
the oceans, the Arctic, climate change, wildlife conservation, 
and health. In each of these areas, achieving substantive and 
diplomatic gains depends upon making strong and effective 
investments in long-term policy development, interagency 
coordination, the best analysis, and partnerships with other 
governments, the private sector, and civil society.
    Second, innovation. Advances in science and technology have 
sharpened the need to focus on science diplomacy. To remain the 
best innovators in the world, our scientists must have access 
to data, research results, and collaboration opportunities with 
their international counterparts. And science enables the 
United States to exert innovative leadership in averting 
catastrophes, whether from mercury contamination, an infectious 
disease like Ebola, or severe water shortages.
    Third, inspiration. If confirmed, I would work to foster 
and capitalize on the tremendous talent and inspiration of the 
people in OES to build coalitions and yield important 
diplomatic wins.
    In closing, I am eager to tackle the staggering pressures 
bearing down on the planet's people and natural resources--as 
Senator Udall said, from the ocean's depths to the ice-capped 
poles and to outer space, and to help shape foreign diplomacy 
in these areas for years to come.
    If confirmed, I would work hard every day to successfully 
carry out the profound responsibility thereby conferred upon 
me.
    Thank you for your consideration. And I look forward to 
your questions.
    [The prepared statement of Ms. Haverkamp follows:]

              Prepared Statement of Jennifer Ann Haverkamp

    Thank you, Mr. Chairman, Ranking Member Udall and distinguished 
members of the committee.
    It is a great privilege for me to appear before you today as 
President Obama's nominee for Assistant Secretary of State for the 
Bureau of Oceans and International Environmental and Scientific Affairs 
(OES). I am grateful to President Obama and Secretary Kerry for placing 
their trust in me to help fashion solutions to the profound challenges 
facing our fragile world and the people it must continue to sustain. I 
am also grateful for the opportunity to again work with Under Secretary 
Catherine Novelli, whose dynamic leadership and excellent judgment I 
had the privilege to observe closely during our years together at USTR.
    If confirmed, I very much look forward to working with the 
Congress, and this committee in particular, to advance the United 
States essential environmental, economic, and national security 
interests through our global environmental, scientific, and health 
diplomacy.
    I am also deeply grateful to my family, who have supported and 
inspired me throughout my career in public service and international 
environmental and trade policy. With me here today are my husband, Jeff 
Kehne, my father- and mother-in-law, Bruce and Elizabeth Kehne, of 
Columbia (formerly Pikesville), Maryland, and my niece, Meagan 
Haverkamp. Our two children very much wish they could be here but our 
son Gregory, a college junior, is studying mathematics abroad in 
Budapest and our daughter Adrianne is busy completing her freshman year 
of college.
    My parents, were they still alive, would have been enormously proud 
to see this day. My father, a college educator who served as a U.S. 
Navy lieutenant in World War II's Pacific Theater, and my mother, a 
teacher and homemaker who raised six children, believed deeply in the 
importance of education, hard work, and public service. And I can thank 
our family's cross-country vacations, which Dad and Mom spent driving 
us to see our Nation's spectacular national parks and historic sites, 
for sparking my lifelong passion for nature conservation and outdoor 
recreation.
Professional background
    I am energized and eager to return to government and put my 
experience to work advancing American priorities and values. My 
professional experiences have attracted me to this position and I might 
even argue this is a role I have been preparing for throughout my 
career.
    I would bring to the position a science background, having majored 
in biology in college and published field research on the ecology of 
the North American tall-grass prairie. I have dedicated most of my 
career to public service, and have worked for the last 22 years in the 
international realm. For most of my 10 years at USTR I served as the 
Assistant U.S. Trade Representative for Environment and Natural 
Resources and was a career member of the Senior Executive Service. 
Before USTR I also held positions of responsibility at the Department 
of Justice, the Environmental Protection Agency, and the U.S. Court of 
Appeals. Though working at Foggy Bottom would be a new experience, over 
the years I have engaged actively with many of the Department's global 
environmental, fisheries, and economic issues and gotten to work with 
many of its outstanding officials.
    I believe many aspects of my experience at USTR will have relevant 
parallels in the work of OES: strengthening the United States 
domestically through international engagement; finding ways to advance 
U.S. economic interests while protecting our environmental values; 
promoting health and prosperity abroad and leveling the playing field 
for U.S. companies by advancing environmental protections in other 
countries; and recognizing that often the best way to protect 
biodiversity is through solutions that accommodate the local 
population's economic needs--by making the forests and elephants and 
coral reefs worth more alive than dead.
    More recently, I worked in the nonprofit sector to find practical 
solutions to confront climate change, conserve tropical forests, and 
advance clean energy. Addressing and preparing for climate change, one 
of the most profound challenges facing our generation, is a key 
priority of the President and Secretary Kerry, and cuts across many 
aspects of OES's work and that of the Department more broadly.
Overview of OES
    Four decades ago, Congress passed legislation creating OES with 
broad responsibilities for complex and consequential issues, around the 
same time Congress addressed increasingly harmful environmental 
degradation by passing landmark environmental and pollution control 
legislation. Over the years since those laws were enacted, OES's 
signature issues of science, technology, and innovation; environment; 
oceans; and health have played increasingly significant roles in 
strengthening the U.S. economy, advancing our foreign policy 
objectives, and buttressing our leadership position in the world. More 
and more, the Department's regional bureaus and embassies consider 
OES's deep bench of substantive experts a valuable tool in their 
bilateral diplomacy, as the host countries seek out U.S. scientific and 
technological cooperation or assistance to address challenges such as 
wildlife trafficking or resolving conflicts over access to water 
resources. For example, OES experts supported efforts by countries 
along the Nile River Basin to establish a cooperative framework for 
managing its limited water resources that is expected to contribute to 
the region's economic development, peace, and security.
    As part of the first Quadrennial Diplomacy and Development Review 
(QDDR) in 2010, OES joined with the Department's Bureau of Economic and 
Business Affairs and the Bureau of Energy Resources to become the ``E'' 
family, now under Under Secretary Novelli's leadership. This 
collaborative relationship was reinforced in the recently released 
second QDDR. I would welcome the opportunities this structure presents 
for close collaboration with these offices, a situation resonant with 
my career experiences in international trade, environmental protection, 
and clean energy development.
    If confirmed by the Senate, my priorities would be interwoven and 
would encompass the following themes: investments, innovation, and 
inspiration. First, I would like to continue the strong and effective 
investments Secretary Kerry is making, especially in the areas of 
oceans, the Arctic, climate change, conservation, and health. In each 
of these areas, investments in long-term policy development; 
interagency coordination; partnerships with other governments, the 
private sector, and civil society; and the best analysis will be key to 
achieving sustained substantive and diplomatic gains.
    Second, innovation. Our knowledge of science to educate and inform 
our partners and the public will guide my thinking and bring an 
innovative, equitable and cost-effective approach to problemsolving. 
Advances in science and technology have brought our world much closer 
together and sharpened the need to focus on science diplomacy. To 
remain the best in the world, our scientists need access to data, 
research results, and collaboration opportunities with their 
international counterparts. And science underpins the actions we take 
and enables the United States to exert innovative leadership in 
averting catastrophes, whether from mercury contamination, an 
infectious disease or severe water shortages.
    Third, inspiration. I would work to foster and capitalize on the 
tremendous talent and inspiration of the people in OES to build 
coalitions and partnerships. The Bureau's professionals have been at 
the forefront of international efforts to achieve important wins on the 
conservation, health, climate change, science, space and trade fronts, 
keeping a steady eye on the prize throughout often contentious, hard-
fought negotiations (including some that I have witnessed firsthand).
Priority issues for OES
    Across the wide range of issues that fall within OES's 
responsibility, I'd like to elaborate on my key priorities, if 
confirmed:
            Oceans
    The oceans, covering almost three-quarters of the planet, are vital 
resources for food, for transportation, for energy, for tourism. 
Secretary Kerry has rightly made global oceans policy a top priority of 
the Department, and if confirmed I look forward to throwing my energy 
into those efforts.
    The key initiatives coming out of last June's successful Our Ocean 
international conference include goals to advance sustainable 
fisheries, reduce pollution entering the marine environment, stem the 
increase of ocean acidification, and protect ocean areas. One OES 
priority in 2015 is carrying out a plan developed by President Obama's 
Task Force on Combating Illegal, Unreported, and Unregulated Fishing 
and Seafood Fraud. Implementing this plan to combat IUU fishing and 
seafood fraud will help level the playing field for American fishermen 
and fishing businesses who play by the rules.
    I would also prioritize OES's role in promoting sustainable global 
fisheries for the world's people who depend on oceans for their food 
and their livelihoods. Over 1 billion people worldwide rely on food 
from the ocean as their primary source of protein. OES is involved in a 
wide range of negotiations addressing the conservation and management 
of global fish stocks. The economic benefit to the United States 
generated by the fisheries subject to these negotiations, or managed by 
the regional fisheries management organizations within which many such 
negotiations occur, is estimated at between $12-$15 billion each year. 
These negotiations affect economic interests and stakeholders in 
virtually all parts of the United States, including the Pacific and 
Atlantic coasts, Gulf of Mexico, Alaska, Hawaii and the U.S. Pacific 
territories.
    I am grateful the Senate gave its advice and consent to U.S. 
ratification of four important fisheries treaties last spring, and look 
forward, if confirmed, to working with Congress, members of the Oceans 
Caucus and this committee to implement them. Illustrative of these 
agreements' contribution to safeguarding U.S. economic interests is the 
Agreement on Port State Measures to Prevent, Deter, and Eliminate 
Illegal, Unreported, and Unregulated Fishing. The Port State Measures 
Agreement combats these harmful fisheries practices through the 
implementation of robust, globally consistent requirements of parties, 
in their capacity as port States, to refuse port entry or access for 
landing fish, transshipment, packaging, processing, or servicing a ship 
if the ship is known to have engaged in IUU fishing. The U.S. fishing 
industry benefits when its competitors are compelled to also follow the 
rule of law, and I look forward to contributing to these efforts.
            Arctic
    As part of OES's responsibility for oceans and polar affairs, in 
recent years the Bureau has deepened its engagement with other Arctic 
countries, as the region's changing climate and receding ice cover have 
necessitated greater attention to emerging issues. As more Arctic 
waters become navigable and fishable, the need escalates for greater 
Arctic science cooperation, sustainable fisheries management, and 
protection of a fragile ecosystem newly opening to shipping, economic 
development and resource extraction. The Arctic is an excellent example 
of how U.S. environmental and natural resource conservation interests 
are inextricably entwined with our economic and national security 
interests, and must be an integral part of our diplomatic efforts.
    In April, the United States took over from Canada the 2-year 
rotating chairmanship of the Arctic Council, an intergovernmental forum 
made up of those eight nations with land territory above the Arctic 
Circle. The Council's priorities during the U.S. chairmanship will 
focus on stewardship of the Arctic Ocean, improving economic and living 
conditions for the people of the region, and addressing the effects of 
climate change in the Arctic. If confirmed, I look forward to working 
closely with Admiral Papp, the Department's Special Representative for 
the Arctic, as well as with other bureaus and government agencies, to 
make the best use of this important diplomatic opportunity.
            Climate change
    The Department's 2015 Quadrennial Diplomacy and Development Review 
focuses on four global policy priorities, including mitigating and 
adapting to climate change. As Secretary Kerry stated in his March 2015 
speech before the Atlantic Council, climate change, like epidemics, 
poverty, extremism, and nuclear proliferation, is a challenge that 
respects no borders. He has also spoken frequently of our 
responsibility to future generations as stewards of the Earth.
    If confirmed, I would look forward to supporting the Office of the 
Special Envoy on Climate Change (SECC), the Department's lead on 
international negotiations on climate change. Although OES does not 
lead this work, the Bureau lends its scientific and technical expertise 
to SECC. One example in particular is the work the Bureau is 
undertaking with Mexico and Canada to gain broad international support 
for an agreement to dramatically reduce hydrofluorocarbons (HFCs) in 
the atmosphere. The health and economic benefits that would be derived 
from eliminating 90 billion tons of carbon dioxide-equivalent through 
2050 would be enormous. If confirmed, I would lend my professional 
expertise in the trade, economics, and environmental arena to ensure 
that the support the Bureau provides in confronting climate change is 
scientifically based, results oriented and of tremendous value to the 
American people.
            Wildlife trafficking
    Wildlife trafficking is a critical conservation concern and a 
threat to our country's national security. The illegal trade in 
wildlife has devastating impacts: it fuels corruption and undermines 
the rule of law, hinders economic development, contributes to the 
spread of disease, and is pushing some species to the brink of 
extinction. It is compromising the tourism-based economies of 
vulnerable African countries and, in some instances, is being used to 
finance organized crime, insurgencies, and possibly terrorism.
    The toll on iconic species is horrific: the forest elephant 
populations in Central Africa, for instance, declined by approximately 
two-thirds between just 2002 and 2012. And while elephants and 
endangered rhinos slaughtered for their ivory first come to mind, many 
other species from most continents, including black coral, turtles and 
tortoises, iguanas, tropical birds, pangolins and primates, are all at 
risk. The United States is both a link in the transit chain and a final 
destination for some wildlife and wildlife products; our international 
efforts focused on reducing both supply and demand must and will be 
pursued in tandem with domestic actions.
    The OES Bureau has an important role to play in carrying out the 
Implementation Plan for the National Strategy for Combatting Wildlife 
Trafficking, issued in February. The Plan provides details for how the 
National Strategy's goals will be achieved and how progress will be 
measured. OES is leading coordination of two elements of the strategy: 
the international cooperation and partnerships and demand reduction 
components. OES is also contributing, through its support for regional 
wildlife enforcement networks (WENs) worldwide, to the global 
enforcement element.
    The United States ramped-up efforts are beginning to pay off. We 
have, notably, reached agreements with China to cooperate in our 
efforts to combat wildlife trafficking. But there is still an enormous 
amount of work to be done, and if confirmed I would ensure that the 
Bureau's resources are deployed effectively in the fight against this 
global scourge.
            Global health diplomacy
    Before the daunting challenges of Ebola fade in memory, the United 
States Government needs to incorporate its lessons learned into our 
broader global health diplomacy, to better inform our Nation's 
responses to the inevitable future pandemics, wherever and whenever 
they may arise. The Ebola outbreak is but the latest evidence that the 
world has far to go to be ready to prevent, detect, and respond to 
these global health security threats, and OES is well-positioned to 
help address this problem. The Global Health Security Agenda, a 44-
country effort launched by the United States in 2014, has now gained 
over 100 new concrete commitments to prevent, detect, and rapidly 
respond to infectious disease threats before they become epidemics like 
Ebola. The Bureau supports this vital priority by working among these 
countries and with relevant international organizations to achieve the 
Agenda's targets. Among other efforts, the Bureau is also working to 
expand the number of countries able to meet their obligations to the 
World Health Organization to develop certain core capacities to detect, 
assess, notify, and report public health emergencies of international 
concern.
    OES plays a critical, though often behind the scenes, role in 
global health diplomacy. The Bureau works closely with the Department's 
regional and functional bureaus, special representatives and other U.S. 
entities (CDC, HHS, DOD, USAID, et al.) with important roles in global 
health policy. The strong relationships that U.S. expert agencies have 
developed with their international counterparts are vital to advancing 
global health. But as we learned from Ebola, in a crisis, to mobilize 
the global resources needed, and to coordinate the efforts of multiple 
entities, it takes the high level, cross-cutting diplomacy that the 
State Department does so well. If confirmed, I would apply myself to 
finding ways to strengthen the international and interagency 
coordination on shared global health priorities, and to advancing 
global pandemic readiness.
            Science and technology--promoting innovation and 
                    entrepreneurship
    As I mentioned earlier, I consider the deployment of U.S. 
scientific and technological expertise, and our leadership in 
innovation, to be an important engine of diplomacy and global 
development. Equally important is to support the Secretary's efforts to 
increase the role of science across the work of the State Department.
    Innovation and entrepreneurship have been fundamental drivers of 
U.S. economic growth since our country's founding, and promoting 
innovation abroad is an especially promising area of U.S. diplomacy. In 
this vein, OES has developed a Global Innovation through Science and 
Technology (GIST) initiative, which trains young entrepreneurs. GIST, 
itself an excellent example of bringing an innovative approach to 
diplomacy, has to date led to businesses that generated over $80 
million in revenue. The program has worked in 86 emerging economies 
with over 2.6 million innovators and entrepreneurs around the world, 
providing training to over 4,500 startups. If confirmed, I would work 
to grow this program, which gives hope to young entrepreneurs and 
creates jobs in countries where the lack of economic opportunity can 
sow unrest and threaten our national security.
Closing
    I am excited about the prospect of leading a bureau that brings to 
bear the best analysis to help pioneer scientific and technological 
breakthroughs. I am excited to tackle the staggering pressures bearing 
down on natural resources, from the oceans' depths to the ice-capped 
poles, to the savannas and to outer space, and to help shape foreign 
diplomacy in these areas for years to come.
    If confirmed, I would work hard every day to deserve the 
extraordinary honor and carry out the profound responsibility thereby 
conferred upon me.
    Thank you for your consideration, and I look forward to your 
questions.

    Senator Barrasso. Well, thank you. Congratulations, again.
    I will next move to Ms. Occomy.

    STATEMENT OF MARCIA DENISE OCCOMY, NOMINATED TO BE U.S. 
            DIRECTOR OF THE AFRICAN DEVELOPMENT BANK

    Ms. Occomy. Thank you, Chairman and distinguished members 
of the committee. I am grateful for the opportunity to appear 
before you today.
    I am honored that President Obama has nominated me to serve 
as the U.S. Executive Director for the African Development 
Bank.
    I grew up in Chicago in a family of excellent role models 
who taught me the importance of hard work, discipline, and 
focus to be successful in life. My grandmother was one of the 
first African-American women to attend Radcliffe College in the 
early 1900s, and later became a prominent writer during the 
Harlem Renaissance. My father entered the University of Chicago 
at the age of 15, excelling in math and later becoming a 
computer executive in the retail industry in Chicago. My mother 
taught public schools for over 30 years, dedicating her life to 
public service. They and many others have influenced my 
decision, in part, to pursue an international development 
career later in my life.
    If confirmed as the U.S. Executive Director to the African 
Development Bank, my vision is to leverage my international 
development experience to support U.S. interests in seeing the 
African Development Bank carry out its mission to promote 
economic development and progress across Africa.
    Boosting growth is important for the African Continent but 
also for the United States by opening new markets and providing 
new customers for American goods and services. I have years of 
experience as a fiscal reform adviser on USAID-financed 
projects in developing in post-conflict countries. I have 
advised Ministries of Finance as they underwent public 
financial management reforms to strengthen their revenues and 
to build financial systems and capacity to put the country on 
the path towards economic growth. I have worked in countries in 
Central Asia, the Middle East, Central Europe, and in Africa, 
Egypt, Senegal, and, most recently, in the newest independent 
nation, South Sudan. I have experienced firsthand when 
countries struggle to balance implementation of sound fiscal 
policies while seeking to maintain political stability and 
security. I was in South Sudan and directly involved in 
assisting the country in post-conflict recovery efforts. Prior 
to my fiscal reform project implementation experience, I worked 
as a policy analyst at OMB during the 1990s.
    I also have experience leveraging public-private 
partnerships for important local economic development projects. 
As a University of Chicago graduate student on a Patricia 
Harris Fellowship, I worked with the Habitat Company, a leading 
real-estate development firm which partnered with the Chicago 
Housing Authority to build scattered-site housing for public-
housing residents to better integrate them into the broader 
community. This project was a model for how the public and 
private sector can partner to address a social issue 
effectively. I recognize that leveraging private-sector 
investment solutions and technologies will be a critical aspect 
of the future development of Africa, as well. I look forward to 
supporting the African Development Bank to leverage the 
financing instruments, to encourage private investment in 
Africa, including through public-private partnerships.
    During his July 2013 visit to Africa, President Obama 
launched the Power Africa Initiative, a $7 billion, 5-year 
initiative to double access to electricity in sub-Saharan 
Africa, in partnership with African countries and the private 
sector.
    When President Obama launched the Power Africa Initiative 
in Tanzania, African Development Bank president Donald Kaberuka 
joined him as a symbol of how the United States and Africa are 
working together to promote inclusive growth in the region.
    Attracting private investors to Africa will require 
significant investment in infrastructure and a climate that is 
conducive to investment. Creating the right investment climate 
will depend on Africa's commitment and ability to improve 
governance, transparency, regional integration, and to build a 
skilled workforce. The African Development Bank has played a 
leading role in assisting African countries to address those 
issues, but more work remains to be done.
    If confirmed, I commit to being a good steward of U.S. 
financial contributions to the bank and to ensure that the bank 
furthers U.S. economic and security interests.
    Mr. Chairman, members of the committee, thank you for 
considering my nomination. I look forward to answering your 
questions today.
    [The prepared statement of Ms. Occomy follows:]

               Prepared Statement by Marcia Denise Occomy

    Chairman Barrasso, Ranking Member Udall, and distinguished members 
of the committee, I am grateful for the opportunity to appear before 
you today. I am honored that President Obama has nominated me to serve 
as the U.S. Executive Director for the African Development Bank.
    I grew up in Chicago in a family of excellent role models who 
taught me the importance of hard work, discipline, and focus to be 
successful in life. My grandmother was one of the first African 
American women to attend Radcliffe College in the early 1900s and later 
became a prominent writer during the Harlem Renaissance. My father 
entered the University of Chicago at the age of 15 excelling in math 
and later becoming a computer executive in the retail industry in 
Chicago. My mother taught public schools for over 30 years dedicating 
her life to public service. They and many others have influenced my 
decision in part to pursue an international development career later in 
my life.
    If confirmed as USED, my vision is to leverage my international 
development experience to support U.S. interests in seeing the African 
Development Bank carry out its mission to promote economic development 
and progress across Africa. Boosting growth is important for the 
African Continent, but also for the United States, by opening new 
markets and providing new customers for American goods and services. I 
have years of experience as a fiscal reform advisor on USAID-financed 
projects in developing and post conflict countries. I have advised 
Ministries of Finance as they underwent public financial management 
reforms to strengthen their revenues and to build financial systems and 
capacity to put the country on a path toward economic growth, while 
building political capacity. I have worked in such countries as 
Kazakhstan, Kosovo, Iraq, Afghanistan, and in Africa--Egypt, Senegal 
and most recently in the newest independent nation South Sudan. I have 
experienced firsthand when countries struggle to balance implementation 
of sound fiscal policies, while seeking to maintain political stability 
and security. I was in South Sudan and directly involved in assisting 
the country in post conflict recovery efforts. Prior to my fiscal 
reform project implementation experience, I worked as a policy analyst 
at the OMB during the 1990s.
    I also have experience leveraging public-private partnerships for 
important local economic development projects. As a University of 
Chicago graduate student on a Patricia Harris Fellowship, I worked with 
Habitat Company, a leading real estate development firm which partnered 
with the Chicago Housing Authority to build scattered site housing for 
public housing residents to better integrate them into the broader 
community. This project was a model for how the public and private 
sector can partner to address a social issue effectively. I recognize 
that leveraging private sector investment, solutions and technologies 
will be a critical aspect of the future development of Africa as well. 
I look forward to supporting the African Development Bank to leverage 
its financing instruments to encourage private investment in Africa 
including through public-private partnerships.
    During his July 2013 visit to Africa, President Obama launched the 
Power Africa Initiative, a $7 billion, 5-year initiative to double 
access to electricity in sub-Saharan Africa in partnership with African 
countries and the private sector. In announcing this key initiative the 
President noted, ``America's been involved in Africa for decades but we 
are moving beyond a simple provision of assistance . . . to a new 
model, a partnership between America and Africa, a partnership of 
equals that focuses on (Africa's) capacity to solve problems and 
(Africa's) capacity to grow.''
    I embrace the President's vision. When President Obama launched the 
Power Africa Initiative in Tanzania, African Development Bank President 
Donald Kaberuka joined him as a symbol of how the United States and 
Africa can work together to promote inclusive growth in the region.
    Attracting private investors to Africa will require significant 
investment in infrastructure and a climate that is conducive to 
investment in Africa. Creating the right investment climate will depend 
on Africa's commitment and ability to improve governance, transparency, 
regional integration and to build a skilled workforce. The African 
Development Bank has played a leading role in assisting African 
countries to address these issues, but more work remains to be done.
    If confirmed, I commit to being a good steward of U.S. financial 
contributions to the bank and to ensure that the Bank supports our 
Nation's inherent values--recognizing that open societies are the 
strongest societies; transparent systems are the most successful 
systems; and countries that commit to equally helping their citizens be 
healthy and educated, with economic opportunities will be the most 
prosperous.
    Thank you again for considering my nomination, and I look forward 
to answering any additional questions you may have.

    Senator Barrasso. Thank you very much for your testimony.
    Now we will hear from Mr. Sabharwal.

 STATEMENT OF SUNIL SABHARWAL, NOMINATED TO BE U.S. ALTERNATE 
     EXECUTIVE DIRECTOR OF THE INTERNATIONAL MONETARY FUND

    Mr. Sabharwal. Chairman Barrasso, Ranking Member Udall, 
distinguished members of the committee, it is an honor to 
appear before you today to present my personal and professional 
credentials for the position of the United States Alternate 
Executive Director of the International Monetary Fund.
    I am grateful for President Obama for nominating me to this 
important office, and to Secretary Lew for his confidence and 
support. I also do want to thank the committee staff who have 
taken time to meet with me in the confirmation process.
    If confirmed I look forward to advancing our shared 
commitment to make the IMF an even more effective organization 
and one where U.S. interests are strongly represented, 
promoted, and defended.
    I would like to introduce the members of my family who are 
here with me today: my wife, Gabrielle, of 24 years, who has 
given up her forensic sciences career to follow me around the 
world and help me raise the family; my son, Nicolas, who just 
finished his sophomore year at Duke University studying 
computer sciences. He is accompanied by two of his college 
friends. It is great to see interest in the political process 
amongst youth.
    Senator Barrasso. You will be paying for dinner tonight. 
[Laughter.]
    Mr. Sabharwal. We did not talk about that yet. [Laughter.]
    Who is missing--of course, the busiest person in the family 
is always the youngest, and that is my daughter, Isabella. She 
is 16, a sophomore at the Cathedral School, who simply did not 
want to give up her orchestra practice and her track-and-field 
practice 2 days before the D.C. State Championships, and her 
chemistry exam, shockingly. So, we are missing her.
    I have submitted my written statement for the record. I do 
not intend to read that in its entirety here. However, I would 
like to point out, just briefly, that I arrived in this country 
32 years ago from Communist Hungary. My family--my mother, 
brother, and I--we fled and arrived at the United States 
Embassy in Vienna, sought political asylum, and, through the 
support of a number of families, churches, organizations, 
charities, I managed to enroll college and start a professional 
career. I am extremely, eternally grateful to this country. And 
I am now looking to give back.
    In the 27 or so years of my professional career, I had an 
opportunity to serve both on the public sector and 
predominantly on the private-sector side of things. In the 
public-sector capacity, I was an early American employee at the 
EBRD, the European Bank for Reconstruction Development, shortly 
after its inception, where I really found an appreciation of 
the role an IFI can play in funding infrastructure projects, 
creating institutions, and providing comfort to private-sector 
investment and engagement. However, as you have seen in the 
testimony, the majority of my experiences are in the private 
sector as an investor in financial services and financial 
technology.
    With my various positions, I have had a chance to travel 
and live around the world. And I believe this professional 
background, coupled with my volunteer experiences with the 
sports movement and Olympic organizations, really have given me 
an opportunity to deal with people from every single continent 
from many, many countries. And this, I feel, has prepared me 
well to carry out the duties, if confirmed, of the U.S. 
Alternate Executive Director at the IMF. I think this is an 
important skill when you are dealing with an institution with 
up to 200 members and where you need their support to engage 
with you on a wide range of issues.
    Thank you for the opportunity to appear here today. I would 
be pleased to answer any questions and, if confirmed, of 
course, working with you and your staff on a range of issues 
affecting the IMF.
    Thank you.
    [The prepared statement of Mr. Sabharwal follows:]

                 Prepared Statement of Sunil Sabharwal

    Chairman Barrasso, Ranking Member Udall, and distinguished members 
of the committee, it is an honor to appear before you today to present 
my personal and professional credentials for the position of United 
States Alternate Executive Director of the International Monetary Fund 
(IMF).
    I am grateful to the President for nominating me to this important 
office and to Secretary Lew for his confidence and support. If 
confirmed, I look forward to advancing our shared commitment to make 
the IMF an even more effective organization and one where U.S. 
interests are strongly represented, promoted, and defended.
    I would like to introduce members of my family, who are here with 
me today: starting with my son, Nicolas, who is a sophomore at Duke 
University with an interest in engineering and the sciences. My 
daughter, Izabella, who is a sophomore in High School at the National 
Cathedral School, and is vying to follow her grandfather to be an 
Olympian track athlete, and finally my wife, Gabrielle, with a Forensic 
Sciences background whose attention to detail has helped me get through 
all the documents needed prior to me sitting here in front of you. We 
also share a common passion for the sport of fencing as we met 25 years 
ago in Culver City, CA, in a fencing club and continue our involvement 
with the sport and the Olympic movement.
    I was born in New Delhi, India, to an Indian father and a Hungarian 
mother. My parents separated when I was 9, and I moved to Budapest 
Hungary part of the Soviet Block at the time. Following my mother's 
refusal to join the Communist Party, she was refused a business permit, 
was constantly harassed for her religious beliefs--in the end giving 
the family no choice but fleeing the country and seeking asylum at the 
U.S. Embassy in Vienna. I had just finished high school.
    Through the cooperation of the U.S. State Department, the United 
Nations, and charitable organizations, we received political asylum in 
the United States, more precisely in Columbus, OH, and with specific 
assistance by the Upper Arlington Lutheran Church. To date, I will 
never forget the reception we received in Columbus, in December of 1983 
(just a couple of days before Christmas) and will remain forever 
grateful to Professor Cole and his family who enabled me to enroll at 
the Ohio State University weeks after my arrival. While I put myself 
through college with the use of financial aid, work-study, and 
scholarships, my family moved to California. Upon graduation, I joined 
them to begin my professional career.
    When I left Hungary in 1983, I thought it was for good. Little did 
we know that less than 10 years later, massive political changes would 
sweep the region free. One of the first institutions created to foster 
the transition of the region was the European Bank for Reconstruction 
and Development (EBRD), and I was fortunate enough to play a meaningful 
role in the region's transition as an American citizen and EBRD 
employee.
    I established the EBRD office in Budapest in early 1992, a time in 
which Hungary was at the forefront of innovative foreign direct 
investment legislation and regulations. This experience allowed me to 
participate in landmark public and private sector transactions, 
including the first bank and telecomm privatizations, infrastructure 
projects, municipal finance, and venture capital deals of Central and 
Eastern Europe. In 1995, I transitioned to London to join the EBRD's 
headquarters staff as a member of its Financial Institutions team, 
which had the responsibility of investing in, and lending to, banks in 
the region. The 5 years I spent at the EBRD had shaped my early 
professional career and have had a significant impact throughout. I 
then spent about 10 years working for GE and First Data Corporation, 
most of it focused on investing in the financial services sector or 
companies that provide services to the financial services industry. For 
the last 8 years, I have served as an independent investor and adviser 
focused on the financial services, or ``fintech'' sector.
    As a result of my global upbringing, through which I gained an 
ability to relate to people around the world, and my 25 years of tenure 
in the financial services sector--in both public and private domains--I 
am equipped with the experience necessary to carry out successfully the 
duties, if confirmed, of the U.S. Alternate Executive Director at the 
IMF. In addition, my language skills and volunteer experiences are also 
highly relevant in a body where we need to get representatives of 
nearly 200 countries to support us on a wide-ranging set of issues.
    I look forward to answering your questions, and, if confirmed, to 
working with members of the committee on policy matters affecting the 
IMF.
    Thank you for the opportunity to appear before the committee today. 
I would be pleased to answer any questions you may have.

    Senator Barrasso. Thank you for your testimony. 
Congratulations, again.
    And now, finally, Mr. Egan.

STATEMENT OF BRIAN JAMES EGAN, NOMINATED TO BE LEGAL ADVISER OF 
                    THE DEPARTMENT OF STATE

    Mr. Egan. Mr. Chairman, Ranking Member Udall, and members 
of the subcommittee, it is an honor to appear before you today 
as President Obama's nominee to serve as Legal Adviser to the 
Department of State.
    I am humbled by the trust that the President and Secretary 
Kerry have placed in me, and I am grateful to the committee for 
considering my nomination. I also appreciate the opportunity I 
have had to meet with committee staff, before this hearing, for 
productive discussions on a range of topics.
    Mr. Chairman, please allow me to introduce my wife, Amy, 
and my children, Sally, Niles, and Damon, who are happy to have 
a half day of school to attend this afternoon's event. As you 
know, government service often requires long and unpredictable 
hours, which take a toll on our families. And I want to thank 
my family for the sacrifices they have made to enable me to 
pursue my passion for public service. I would not be able to 
carry out my current responsibilities, and I could not 
contemplate assuming the duties that I hope you will see fit to 
entrust to me, without their love and support.
    I would also like to introduce my father, Dennis Egan, who, 
by example, has taught me the importance of hard work, 
independent judgment, and kindness in raising myself and my 
five brothers and sisters.
    I am particularly honored to have been nominated for this 
position because serving as the Legal Adviser would mark a 
homecoming for me. Although I began my career as a lawyer in 
private practice, my calling has always been public service, 
and I have spent the past 10 years as a government lawyer, 
starting as a career attorney in the Office of the Legal 
Adviser. From my time there, I know that the Office of the 
Legal Adviser plays a critical role in advancing U.S. foreign 
policy and national security by providing high-quality and 
objective legal advice to the Secretary of State and other 
policymakers. The over 200 career lawyers and other 
professionals who make up the office strive to promote and 
protect U.S. interests around the world every day, without 
regard to party or politics, and in areas ranging from 
counterterrorism, law enforcement, and nuclear nonproliferation 
to the promotion of American trade and business and the 
protection of American citizens abroad.
    I have dedicated my career to public service, to play a 
part, however small, in helping address the many legal 
challenges that are faced by the greatest democracy in the 
world. If confirmed, I would seek to uphold the office's 
tradition of providing rigorous and objective legal analysis in 
furtherance of our Nation's interests at home and around the 
world.
    In my career, I have had the good fortune of being able to 
work in a number of national security legal positions with 
lawyers from around the government. And since 2013, I have been 
the Legal Adviser to the National Security Council. In my 
current role, I have the privilege of working every day with 
the President, Ambassador Rice, and other senior national 
security officials on a broad range of complex domestic and 
international legal issues. And in this capacity, I have had 
the privilege of working closely with general counsels and 
other senior lawyers from around the government, including the 
Departments of Justice, Defense, Commerce, Homeland Security, 
and the Treasury, the Director of National Intelligence, the 
CIA, and, of course, the Department of State. I have benefited 
immensely from the wisdom and counsel of Mary McLeod, who has 
served as State's Legal Adviser in an acting capacity for over 
2 years, and many of the other outstanding attorneys who serve 
in the office that is known as L at the State Department.
    Prior to serving in my current job, I worked at the 
Treasury Department as Assistant General Counsel for 
Enforcement Intelligence from 2012 to 2013, and my first job 
after graduating college was with the Department of Justice, 
where I served as a legal assistant in the Antitrust Division 
for nearly 3 years.
    My experience in government have taught me a considerable 
amount about leadership, responsibility, problem solving, and 
collaboration. And these experience have deepened my conviction 
that we are best able to confront the foreign policy challenges 
that we face as a nation when the executive and legislative 
branches work together to address those challenges. While we 
may not always see the same issues in precisely the same way, 
or reach the same conclusions, if confirmed, I would be 
committed to maintaining an open dialogue with this committee 
on the issues that I will be responsible for as Legal Adviser.
    Thank you for your consideration, and I look forward to 
answering your questions.
    [The prepared statement of Mr. Egan follows:]

                 Prepared Statement of Brian James Egan

    Mr. Chairman, Ranking Member Udall, and members of the committee, 
it is an honor to appear before you today as President Obama's nominee 
to serve as Legal Adviser to the Department of State. I am humbled by 
the trust the President and Secretary Kerry have placed in me, and I am 
grateful to the committee for considering my nomination. I also 
appreciate the opportunity I have had to meet with committee staff 
before this hearing for what I found to be productive conversations on 
a range of topics.
    Mr. Chairman, please allow me to introduce my wife, Amy, and my 
children, Sally, Niles, and Damon. As each of you can attest, 
government service often requires long and unpredictable hours, which 
take a toll on our families. I want to thank my family for the 
sacrifices they have made to enable me to pursue my passion for public 
service. I would not be able to carry out my current responsibilities--
and I could not contemplate assuming the new duties I hope you will see 
fit to entrust to me--without their continued love and support. I would 
also like to introduce my father, Dennis Egan, who by example has 
taught me the importance of hard work, independent judgment, and 
kindness.
    I am particularly honored to have been nominated for this position 
because serving as Legal Adviser would mark a homecoming for me. 
Although I began my career as a lawyer in private practice, my calling 
has always been public service. I have spent the past 10 years as a 
government lawyer, starting as a career attorney in the Office of the 
Legal Adviser.
    From my previous time there, I know that the Office of the Legal 
Adviser plays a critical role in advancing U.S. foreign policy and 
national security by providing high quality, objective legal advice to 
the Secretary of State, other policymakers within the Department of 
State, and departments and agencies across the Federal Government. The 
over 200 career lawyers and other professionals who make up the Office 
of the Legal Adviser strive to promote and protect U.S. interests 
around the world every day. They do so, without regard to party or 
politics, in areas ranging from counterterrorism, law enforcement, and 
nuclear nonproliferation to the promotion of American trade and 
business and the protection of American citizens abroad.
    I have dedicated my career to government service to play a part, 
however small, in helping to address the many challenges faced by the 
greatest democracy in the world. If confirmed, I would seek to uphold 
the Office of the Legal Adviser's tradition of producing rigorous and 
objective legal analysis in furtherance of our Nation's interests at 
home and around the world.
    Beyond working at the Legal Adviser's Office, I have had the good 
fortune of being able to work in a number of other national security 
legal jobs, with lawyers from across the Federal Government. Since 
2013, I have been the Legal Adviser to the National Security Council 
and Deputy Counsel to the President. In my current role, I have the 
privilege of working every day to enhance the security and prosperity 
of the United States and the American people by advising the President, 
Ambassador Rice, and other senior national security officials on a 
broad range of complex domestic and international legal issues.
    I have worked closely with the General Counsels and other senior 
lawyers of departments and agencies throughout the government, 
including the Departments of Justice, Defense, Commerce, Homeland 
Security, and the Treasury; the Office of the Director of National 
Intelligence; the Central Intelligence Agency; and, of course, the 
Department of State. I have benefited from the wisdom and counsel of 
Mary McLeod, who has served as State's Legal Adviser in an acting 
capacity for over 2 years, and many of the other outstanding attorneys 
who serve in the Office of the Legal Adviser.
    Prior to serving as Legal Adviser to the National Security Council, 
I worked at the Department of the Treasury as Assistant General Counsel 
for Enforcement and Intelligence from 2012 to 2013. In that capacity, I 
was responsible for a staff of approximately 50 attorneys who provided 
legal advice and counsel on combating terrorism financing and other 
financial crimes, ensuring the effectiveness of U.S. financial 
sanctions regimes, and other issues related to Treasury's enforcement 
and intelligence responsibilities. And my first job after graduating 
from college was with the Department of Justice, where I served as a 
legal assistant in the Antitrust Division for nearly 3 years.
    My experiences in government have taught me a great deal about 
leadership, responsibility, problemsolving, and collaboration. These 
experiences also have deepened my conviction that we are best able to 
confront the foreign policy challenges we face as a nation when the 
executive and legislative branches work together to address those 
challenges. While we may not always see the issues in precisely the 
same way or reach the same conclusions, if confirmed I would be 
committed to maintaining an open dialogue with this committee on the 
issues that I will be responsible for as Legal Adviser.
    The challenges we face as a nation in the areas of foreign policy 
and national security are increasingly complex, and the legal issues 
that underlie some of these challenges are equally complex. Our 
Nation's leaders require the best possible legal advice to navigate 
these challenges, consistent with the Constitution and our commitment 
to the rule of law. If confirmed, I commit to you that I will do my 
best to provide that advice.
    Thank you for your consideration. I look forward to answering your 
questions.

    Senator Barrasso. Well, thank you so much for your 
testimony. And welcome, to your family, as well.
    Ms. Guilarte, the Latin American/Caribbean region have 
incredibly high energy costs, I think insufficient rates of 
investment; they rely on energy resources, such as Venezuelan 
oil, which may not be suitable, in the long run, in terms of 
sustainability. The countries are dependent on excess--on very 
expensive fuel. And I think we have an opportunity--and three 
members of this committee who are here today have all supported 
legislation--to make it a little easier for us to export U.S. 
natural gas, as well, and want to use the knowledge and the 
technology we have in the United States. Natural gas can be 
helpful in economies, because it provides a--much more 
affordable energy.
    So, in your role, if confirmed, at the International--at 
the Inter-American Development Bank, you know, they talk about 
electricity demand in Latin America and the Caribbean, it is 
going to be doubling over the next decade. And they are looking 
at economic development role that natural gas can play. So, I 
am going to ask if you know of any steps right now that the 
Inter-American Development Bank is taking to provide the region 
with energy security and diversification through natural gas, 
and what role you would like to play in that.
    Ms. Guilarte. Thank you, Chairman, for your question.
    I can understand your concern specifically about Venezuela 
and how their influence, especially on the ALBA members, 
especially those in the Caribbean and Central America, can have 
really a crisis situation, the way things are unfolding in 
Venezuela, and the impact that that could have in the region.
    In terms of coal energy projects and what can be done 
better at the IDB, certainly all projects that come to the 
board are given full consideration. At the moment, there are no 
corelated projects----
    Senator Barrasso. And, I am sorry, I asked about natural 
gas.
    Ms. Guilarte. This--natural gas.
    Senator Barrasso. Natural gas, yes.
    Ms. Guilarte. If confirmed, what I can do, in my capacity, 
is that, one, I will make sure that those related projects that 
come to the board are given full consideration that it meets 
the needs of the country's energy demands, that we consider all 
relevant alternative approaches, and that ultimately they are 
sustainable, both financially and environmentally. I understand 
that the administration is also, through their Alliance for 
Prosperity, creating--in Central America--is looking at 
providing better and more diversed opportunities on energy 
efficiency approaches.
    If confirmed, I look forward to working with you and 
members of this committee in ensuring that we look at all the 
range of options available.
    Senator Barrasso. Yes. But, I would say that, knowing that 
there was significant bipartisan support and an opportunity for 
affordable energy, it is something that I think would benefit 
that area.
    Senator Corker, I am happy to turn my time over to you. I 
know you are on a tighter schedule, and you are chairman of 
this committee. So----
    The Chairman. Well, I really appreciate you letting me do 
this. I know I am--you know I am here for just one of the 
witnesses and--or nominees. But, thank all of you for letting 
me doing--thank you for your service to the country that is 
getting ready to be in, in a different role, anyway.
    To Mr. Egan, I just wanted to ask a few questions. I think 
you know I was going to do this. So, thank you for your 
willingness.
    Congress has long understood that the 2001 AUMF covered al-
Qaeda and the associated forces of al-Qaeda. Would you please 
describe the administration's legal view of why it is that ISIS 
is covered by the 2001 AUMF? And again, thank you for your 
continued service.
    Mr. Egan. Thank you, Mr. Chairman, for your question.
    The administration's position is that the 2001 AUMF does 
cover the ongoing military operations against ISIL. And I think 
the key fact which is reflected most recently in a speech that 
the general counsel from the Defense Department gave--Steven 
Preston--about a month ago, is that ISIL is essentially the 
remnants of a group that was formerly known as Al Qaeda in 
Iraq, a group that we fought in Iraq for a number of years and 
that broke from al-Qaeda in 2013. The administration's view is 
that the break of that group should not change the legal 
authority to use force against that group. Given that ISIL, as 
it is now known, continues to fight Americans and American 
interests in Iraq, they believe that they are the true 
successor to Osama bin Laden, and they are, in fact, competing 
for affiliation of groups with al-Qaeda right now. And that is 
why the administration's view is that ISIL is subject to the 
2001 AUMF.
    The Chairman. And does the administration currently have 
the statutory or article 2 authority to defend the United 
States or coalition-trained forces in Iraq and Syria if those 
forces come under direct threat from ISIS--al-Nusra, Assad 
regime forces, Hezbollah, or any other armed groups? As you 
know, we have a train-and-equip program that is underway. And, 
as you know--well, anyway, I will let you answer the question.
    Mr. Egan. Senator, I should have, of course, noted the 
administration's proposal, which this committee has considered, 
for new authorization to use military force, which would be 
specific to the threat posed by ISIL in Iraq and Syria. The 
administration's view is, at this time, we would have the 
authority to use force against ISIL and against the Nusra Front 
to defend our personnel in Iraq and Syria. I would say, to the 
extent that those personnel came under attack, we would--the 
President would likely have article 2 authority against anyone 
who had attacked them. But, we do have an AUMF that this 
committee has--that you have considered, that reflects the 
President's view on the appropriate scope of military force 
against ISIL in Iraq and Syria.
    The Chairman. Well, actually, that is not true. Martin 
Dempsey and several--Ash Carter and several witnesses who came 
before us said that they did not have the authority to defend 
against Assad if the train-and-equip people that are not our 
folks--they are not part of our coalition, they are people that 
we are training in Syria to deal with both ISIS--well, we--in 
this particular case, ISIS. We may have another program. There 
may be another alleged program against Assad. But, they 
actually say they do not have that authority.
    So, you are saying that you believe we do have that 
authority now to defend them against barrel bombs from Assad.
    They said they had not sought that authority, and there was 
actually an internal debate right now within the administration 
as to whether to seek that authority.
    Mr. Egan. Then, Senator, I apologize. Maybe I misunderstood 
your question. I thought you were asking about our authority to 
defend our----
    The Chairman. Right.
    Mr. Egan [continuing]. Troops who are currently stationed 
in Iraq----
    The Chairman. No.
    Mr. Egan [continuing]. Which I think is a slightly 
different question.
    The Chairman. The Syrian opposition train-and-equip group, 
we do not have that authority, would you agree?
    Mr. Egan. We would have the authority to conduct military 
operations against ISIL and al-Qaeda under the same rationale 
that we do to conduct our own direct operations against those 
groups. I think the question of our authority to use force 
against the Assad regime is a more difficult question, and, you 
are correct, sir, that that is one that is under policy 
consideration within the administration right now.
    The Chairman. To defend the very people that we are 
training to go in and be on the ground.
    Mr. Egan. That is correct.
    The Chairman. Okay.
    I will just ask one more. And I want to thank the chairman 
for allowing me to do this, and the ranking member.
    With United States forces on the ground in Iraq conducting 
activities in both Iraq and in Syria, what authority to protect 
and defend those forces, if any, is currently available under 
the 2001 or 2002 AUMFs? And is there something additional you 
gain under the 2002 AUMF that is not in the 2001 AUMF? I think 
you know the committee is looking at a number of things, one of 
which is the relevance of the 2002 AUMF. And I would appreciate 
it if you would answer that.
    Mr. Egan. Thank you, Senator.
    So, the administration's position is that both the 2001 
AUMF and the 2002 AUMF provide authority for the current 
military operations in Iraq and Syria. The President's AUMF 
proposal would, among other things, repeal the 2002 AUMF. And 
that is because he believes that the authority we have in both 
his proposal and in the 2001 AUMF would be sufficient to 
conduct the operations that are ongoing in Iraq and Syria.
    The Chairman. And so, just to summarize so that you have 
been asked the same question that every other administration 
witness that has these kinds of responsibilities, you believe 
that, today, there is no authorization necessary--no additional 
authorization necessary to deal with ISIS--or ISIL, as you 
would call them--or Daesh, as some may call them.
    Mr. Egan. Senator, as a legal matter, I believe that we 
have the authorization that we need. I think the President has 
been clear that he believes that there are other reasons that 
it is important for this committee to continue its work on the 
AUMF. But, as a legal matter, our view is that we have the 
authority we need to conduct military operations against ISIL.
    The Chairman. Thank you.
    And I will wish you the best, all of you, in your 
nomination testimony.
    And thank you very much for this courtesy, both of you. 
Thank you.
    Senator Barrasso. Senator Udall.
    Senator Udall. Thank you very much, Chairman Barrasso.
    Executive Director Guilarte, the Inter-American Development 
Bank has partnered with the Obama administration on several 
initiatives in Latin America. These include the Micro-Finance 
Growth Fund for the Western Hemisphere, announced at the fifth 
Summit of the Americas in April 2009, and the Women's 
Entrepreneurship in the Americas, announced at the sixth Summit 
of the Americas in April 2012. What are the objectives of these 
initiatives? And what have they accomplished so far?
    Ms. Guilarte. Chairman, I appreciate the question. I am 
sorry. Senator.
    I am not familiar with the initiatives, in entirety, and I 
would appreciate if I can get back to the committee----
    Senator Udall. That would be great.
    Ms. Guilarte [continuing]. On your question.
    Senator Udall. If you could----
    Ms. Guilarte. Yes.
    Senator Udall. If you could answer that for the record, 
that would be terrific.
    Ms. Guilarte. I will.
    Senator Udall. Thank you very much.
    Assistant Secretary Haverkamp, in 2013 President Obama 
issued an Executive order on combating wildlife trafficking, 
with some specific actions for the United States to take. Can 
you describe in more detail what the United States is doing to 
combat wildlife trafficking, and how the State Department is 
working to address these efforts?
    Ms. Haverkamp. Thank you very much, Senator Udall, for that 
question.
    Wildlife trafficking is a real scourge. And it is a 
problem, not just for the obvious reasons of the elimination of 
some iconic species, but it is also an economic problem for 
countries that depend on tourism. It is a national security 
problem because of the involvement of organized crime and 
extreme elements. It is also clearly a biodiversity concern. 
And it is, frankly, a health problem because of the potential 
for these illegally traded species to transmit diseases that 
affect people.
    As you noted, the President has led this initiative. 
Recently, an implementation plan was released, where the 
Department of State, including the Bureau that I hope to lead, 
has a key role, in partnership with the Department of Interior 
and the Department of Justice. The focus that I would see 
having under this initiative is especially in the areas of 
public education, so that people are less likely to demand 
these products, and in the areas of enforcement, as well. 
Enforcement is an especially important concern for OES. There 
is a network of wildlife enforcement networks that OES has 
helped establish around the world, and I would be very 
interested in expanding that and helping to establish 
additional networks around the globe.
    Thank you.
    Senator Udall. Thank you.
    My home State of New Mexico is the world's--has the world's 
first commercial spaceport and two national laboratories. So, 
my State appreciates the role of science--that science and 
technology play in protecting American security and providing 
economic opportunities. What are OES's main priorities with 
regards to space policy and science and technology cooperation?
    Ms. Haverkamp. Thank you for that question.
    In the area of space, in particular, the President, in 
2010, produced a national space policy; and OES's work is 
consistent with and in furtherance of that policy. Key among 
that is the promotion of commercial space activities, including 
the work on Spaceport America that could contribute to 
expanding the opportunities for space transportation.
    Also, OES has an important diplomatic role in working with 
other countries to do things such as address space debris so 
that it is safer to have increased space travel, working, as I 
said, in expanding the opportunities for commercial use of 
space and also working with other countries on things like the 
sustained funding of the International Space Station, that sort 
of thing. But, very much the role of the commercial entities, 
like Spaceport America, is something that we would like to see 
more of.
    Senator Udall. Yes, I appreciate that answer.
    Executive Director Occomy, it is my understanding that, in 
2013, the African Development Bank approved a new 10-year 
strategy which will focus on economic growth plus operational 
priorities, including infrastructure development, regional 
integration, private-sector development, governments and--
governance and accountability, and skills and technology. How 
would you assess the strategy?
    Ms. Occomy. Thank you, Ranking Member Udall, for that 
question.
    I understand that the strategy is going along. One thing 
that I would say is that the African Development Bank has a 
strong partnership with the United States. And part of carrying 
out its strategy is actually to support the United States with 
key initiatives, such as the Power Africa Initiative. The Power 
Africa Initiative is designed to increase electricity access 
across Africa, which is a key priority for the African 
Development Bank, and it is a key directive, in terms of 
implementing one of the core parts of the strategy.
    Again, if confirmed, I will make every effort to work with 
the African Development Bank to effectively implement its 
strategy and to make sure that the elements and the initiatives 
that are implemented are in line with U.S. interests, 
particularly U.S. economic and security interests in Africa.
    Senator Udall. Appreciate that answer.
    Thank you, Mr. Chairman.
    Senator Barrasso. Senator Gardner.
    Senator Gardner. Thank you, Mr. Chairman, and thanks for 
holding this hearing today. And thanks, to all the witnesses, 
for being here, and your families, as well. Thank you for your 
willingness to serve this country.
    To Mr. Egan, just a couple of quick questions. Last week, 
we had a hearing before the East Asia Subcommittee, which also 
now addresses cyber issues. So, just a couple of questions on 
cyber. How do you envision your office interacting with Chris 
Painter's office as the Coordinator for Cyber Issues?
    Mr. Egan. Thank you, Senator.
    I think that the issues of cybersecurity, cyber defense, 
are increasingly important, both as a policy matter--as you 
know, Chris Painter's office is deeply involved in 
international fora related to those issues--but also as a legal 
matter. I think you can look back to some remarks that my 
predecessor--hopeful predecessor--the Legal Adviser, Harold 
Koh, gave in 2012, where he kind of laid out the framework for 
how we would think about cyber activities from a international 
legal perspective. And I would anticipate, if I were confirmed 
by this committee and by the Congress, working very closely 
with Chris--and others at the State Department--to help further 
develop those rules in the interests of our own national 
security.
    Senator Gardner. Thank you.
    And the Sony cyber attack carried out by North Korea was 
described by the President as an act of cyber vandalism and not 
cyber terrorism. In your legal opinion, where do you cross the 
line between cyber vandalism and cyber terrorism?
    Mr. Egan. Thank you, Senator.
    An important legal question that came up in the context--
would come up in the context of Sony or some future event is 
whether we would consider an act in cyber space a use of force, 
where the responses to use of force would apply. And 
considering a question such as that, I think we would look to 
the effects of the act. Did it result in death, destruction of 
significant amounts of property, and other similarly serious 
acts? I think it is hard to kind of speculate in the abstract, 
but those are the types of factors that I would anticipate 
looking to in addressing a question like yours.
    Senator Gardner. Thank you.
    And, to Ms. Haverkamp, the United States assumed the 
chairmanship of the Arctic Council in 2015. How do you assess 
our viability in working effectively with Russia, given that 
nation's aggression in Ukraine and increased military activity 
in the Arctic?
    Ms. Haverkamp. Thank you very much for that question, 
Senator.
    In the Arctic Council, this is an entity that the United 
States helped create many years ago. It operates by consensus 
among the countries that all have territory north of the Arctic 
Circle. Russia has been a part of that process for a very long 
time. And, while the United States has very significant 
problems with some aspects--significant aspects of Russia's 
policy, so far in the Arctic Council, their interests seem to 
have been to work together with the other countries of that 
region.
    Senator Gardner. So, you do not, at this point, see 
Russia's policies as an obstacle to United States Arctic 
policies or objectives in the region?
    Ms. Haverkamp. The agenda that the United States has put 
forward for its chairmanship is one that the other countries 
had to agree to by consensus. And so, Russia has joined that 
consensus in the objectives of Arctic Ocean stewardship, 
safety, and security; protecting the health and economic well-
being of the Arctic peoples; and addressing the concerns of 
climate change in that region.
    Senator Gardner. So, when it comes to the Arctic, Russia is 
living by the terms of the agreement, or at least what we 
believe the agreement to be?
    Ms. Haverkamp. Well, the U.S. chairmanship just began last 
month. And so, I think--my understanding is that people are 
hopeful. But, it may be too early to tell.
    Senator Gardner. Thank you.
    And I am going to--may need help with the last name. Is it 
Mr. Sabharwal? Very good. One of the primary tasks facing the 
International Monetary Fund is stabilizing the economies of two 
European nations: Greece and Ukraine. The next 1.5 billion 
dollar--billion Euro--excuse me--billion Euro payment from 
Greece to the IMF next month--will Greece be able to make the 
payment, or are we heading toward default?
    Mr. Sabharwal. Thank you for the question, Senator Gardner.
    As you know, when the IMF stepped into Greece, back in 
2010, there was serious risk of contagion effect. And whilst 
Greece perhaps is a small percentage, in terms of GDP, of the 
European and the global economy, it was critical that it steps 
in at that time, together with the other institutions, the 
European Central Bank and the European Commission.
    Greece was supposed to, and did, make a payment in full 
last week. And thereby, this week--this actually opened the 
doors for a new set of discussions later on, taking place this 
week in Latvia, where we do not refer to them as a troika 
anymore, because the Greeks do not like that word. We--the 
institutions--the ECB, the European Commission, and the fund--
are discussing a way forward so that Greece is able to make the 
payments, not just in June, but also in July and August. Of 
course, I am not at the fund at this point, I am not in the 
administration. But, from what I understand, the parties 
intend, including Chancellor Merkel, who wishes that Greece 
stays in the eurozone, the institutions, and, after, let us 
say, about a month of pause in dialogue, everybody is back at 
the table. So, we do believe there will be a constructive 
resolution here.
    Senator Gardner. Obviously, one of the other important 
issues that--I mentioned Ukraine. Just yesterday, the United 
States Government signed a $1 billion loan guarantee for 
Ukraine. On March 11, the IMF approved a $17.5 billion loan 
payment to assist the Government of Ukraine. Recently, I met 
with Finance Minister Natalie Yuresko, and she had assured me 
that Ukraine is on a path to economic reform that would satisfy 
both the needs and requirements of the United States Government 
and other international creditors.
    Do you share in this view?
    Mr. Sabharwal. Thank you for the question.
    So, Ukraine and that part of the world is relatively close 
to me, because I spent part of my life growing up there. And if 
you think--wind the clock back 20 years, 23 years, to the 
origin of Ukraine's independence, it really--what has happened, 
one bad economic policy and one less-than-adequate government 
followed another for 20-plus years. Actually, Natalie is 
someone who, when I was at the EBRD, she was actually working 
for one of the venture funds that we were supporting at the 
time. So, it is great to see actually someone so knowledgeable 
about the region coming from the private sector, being in the 
position that she is right now.
    To answer your question, the IMF had identified about a $40 
billion need at Ukraine as a need to get into a financial and 
stable footing. Part of that 17 and a half billion is coming 
from the IMF; part of it from other institutions. And, of 
course, there is kind of a debt overhang in Ukraine, which I 
understand that the parties are in discussion as to how to 
manage that. As long as those discussions are ongoing, the fund 
will continue to be--proactively support Ukraine with its 
program. From what I understand, there is actually a team on 
the ground right now, a fund team on the ground. And the 
initial indications are that--whilst the issues are difficult, 
that the program is on track.
    Senator Gardner. Thank you, Mr. Chairman.
    Senator Barrasso. Thank you, Senator Gardner.
    Senator Murphy.
    Senator Murphy. Thank you very much, Mr. Chairman.
    Welcome, to all of our nominees. I wish you good speed in 
your confirmation process.
    I wanted to pick up where Senator Gardner left off, Mr. 
Sabharwal, to talk a little bit more about Ukraine. I am glad 
to know that you have some expertise, or at least some 
familiarity, with the region.
    So, you know, it is always struck me that our policy on 
economic assistance to Ukraine is anchored in the theater of 
the absurd. We are giving them loan guarantees, we are 
partnering with the IMF and other creditors to extend loans 
with fairly high spreads to them. This is in the midst of an 
invasion of their country. We are forcing them to make very 
painful--very necessary, but very painful reforms in exchange 
for this money. It sort of strikes me as if your neighbor's 
house is on fire, and, instead of just delivering them the 
bucket of water, you sit and negotiate with them for a period 
of hours on the terms for the repayment of that water, instead 
of just putting the fire out.
    And so, I wanted to talk to you for a moment about this 
issue of debt reduction. Larry Summers just wrote a column, in 
which he said that the case for debt reduction with respect to 
Ukraine is, ``as strong as any I have encountered in the past 
quarter century.'' And it strikes me as incredibly reasonable 
that the United States should be playing a leading role in 
working with Ukraine's creditors for a writedown of their debt, 
given the fact that they are in the middle of a war in the 
eastern section of their country, and that--they have, frankly, 
undertaken reforms already that are quite impressive in scope 
and dwarf reforms that have been undertaken in prior 
administrations.
    So, I just wanted to get your sense of what you thought the 
importance of debt reduction was, as part of the strategy 
moving forward for Ukraine, and what role you see United States 
representation as part of the IMF infrastructure playing in 
that conversation.
    Mr. Sabharwal. Thank you for the question.
    As I mentioned before, the identified gap of financing in 
Ukraine, from what I understand, is around $40 billion. Part of 
that is filled with the IMF facility of 17 and a half. And, in 
that, about one-five--15 million--billion is to come from, let 
us call it--whether it is a restructuring of the private-sector 
debt, maybe lengthening the maturity, a combination, lowering 
of interest rates. There could be a number of ways that the 
Government of Ukraine can achieve that, vis-a-vis its private-
sector lenders.
    I believe that the fund does not directly engage in the 
negotiations between the Ukrainian Government and the private-
sector bondholders, but I do believe that the position of the 
Treasury and the position of the fund would be an 
encouragement--a strong encouragement of Ukrainian government 
to be at the table, continue good-faith negotiations with the 
private-sector lenders. And, whilst those are actually ongoing, 
the fund can continue with its program and continue to fund 
Ukraine as it tries to come out of its economic difficulties.
    So, in summary, I would say the position would be of 
support, both from the Treasury--significant support--and the 
fund, but not a direct engagement of negotiations between two 
parties.
    Senator Murphy. Thank you for the answer to the question. I 
mean, I do not think that Ukraine, at this point, is largely 
the problem. My understanding is that it is the private 
creditors that are, right now, refusing to engage in a 
constructive process about debt reduction. And so, I would just 
counsel for a--if that is, indeed, the policy, that the IMF and 
our representation at the IMF is not going to get in the 
business of trying to unmask the fact that many of these 
creditors are refusing to engage in constructive conversations 
about debt reduction, I would, frankly, hope that we would have 
a little bit more active presence and participation, given that 
it is our money at risk. The United States has made loan 
guarantees. We have exposure here. And, to an even more 
important degree, if we do not unravel the economic mess in 
Ukraine, which I think debt reduction is a big part of, then 
the world's security is at risk. That is not necessarily the 
IMF's responsibility, but it is certainly a U.S. interest.
    Mr. Sabharwal. Thank you very much, Senator.
    I have taken note. And, if confirmed, I will take up the 
matter within Treasury and at the fund, itself.
    Senator Murphy. Mr. Egan, I just wanted to just build on 
some questions you were getting from Senator Corker. As you 
know, there is a deep disagreement between many of us in the 
administration on this interpretation of whether the existing 
AUMF covers ISIL. I certainly do not believe that it does. I 
think it is a strain, a reach of pretty incredible proportions. 
And part of our worry is that we are not sure where this 
rationale ends, that if ISIL is included under the umbrella of 
an authorization of al-Qaeda, then what about all of the other 
groups that are, as we speak, pledging allegiance to al-Qaeda? 
Does that mean that the 2001 AUMF lives on forever, in that any 
group in any part of the country can find itself now a subject 
of U.S. force simply because it has aligned itself with ISIS?
    Can you share a little bit as to what you believe the tests 
are right now as to how this new doctrine of interpretation 
that the administration is using of the 2001 AUMF plays out 
with respect to these groups around the world who have pledged 
allegiance to ISIL?
    Mr. Egan. Yes. Thank you, Senator, for the question.
    I think the administration's test as to whether a group is 
an associated force of al-Qaeda is something that has been 
talked about for a number of years. And that is, if a group is 
an organized, armed group that has joined the fight against the 
U.S. or coalition partners alongside of al-Qaeda, a group could 
be considered an associated force of al-Qaeda.
    You are correct that our view on ISIL is different.
    Senator Murphy. But, this is different, because this is not 
an associated force of al-Qaeda. This is now an associated 
force of ISIS.
    Mr. Egan. The way that I would think about it, at least, is 
that they are a successor to Al Qaeda in Iraq. They are, in 
fact, the group that was formerly known as Al Qaeda in Iraq, 
which is what our intelligence community would say. They are, 
in fact, al-Qaeda's longest affiliate, going back to the early 
2000s. And I think if you look at the facts behind ISIS and 
their history, ISIL--ISIS and their history, they are probably 
uniquely situated, and it is hard to see another group that 
would fit the bill as they did, a group that we were fighting 
against, going back several years, that continued to fight us, 
that believes that they are the true successors to Osama bin 
Laden. There just are not other groups out there that I am 
aware of that would fit that bill.
    Senator Murphy. And I would just hope that you will help us 
understand some of the terminology that is being used today. In 
the administration's proposed AUMF, they suggest that 
``associated forces'' will be those that are engaged in 
hostilities against the United States or our coalition 
partners. Well, because ISIS now has, arguably, roots in almost 
every corner of the world, and we have coalition partners in 
every corner of the world, you can see a definition by which 
even Boko Haram, if it is engaged in hostilities against a 
group that--against a country which is a coalition partner, now 
all of a sudden falls under an authorization that was intended 
for a very different group.
    And so, I think many of us are worried about the--not the 
2000 AUMF authorization, in and of itself, but this new 
authorization that is proposed, and how big and unwieldy it 
could become. I look forward to working with you on some of 
those very tricky questions.
    Thank you very much, Mr. Chairman.
    Senator Barrasso. Thank you very much, Senator Murphy.
    Just to follow up, Mr. Egan, a couple of things, in terms 
of treaties, executive actions, where it all fits in. The 
Senate has passed a bipartisan piece of legislation for the 
Iranian deal to make sure that the Senate has an opportunity to 
review that, not at the treaty level, which is a 67, but as a--
more of a disapproval motion, and then whether that is vetoed. 
So, how do you see these differences, in terms of treaty and 
just a disapproval motion? And what qualifies for what?
    Mr. Egan. Thank you for your question, Mr. Chairman.
    If I were confirmed, I think working with this committee on 
issues involving treaties, executive agreements, political 
commitments is one of what I would consider to be my most 
important responsibilities. I think that administrations from 
both parties have had a history of working with the Congress to 
identify agreements that would be treaties subject to the 
treaty clause in the constitution, other agreements that would 
be Executive agreements, and then political commitments of the 
type that the Iran deal is intended to be. And so, working 
through the nuances and making sure that this committee and the 
Congress understands how the administration is approaching a 
particular negotiation, I think, is one of the more important 
responsibilities I would take on if I were confirmed as Legal 
Adviser.
    Senator Barrasso. Yes. I mean, because the United States 
and other nations are attempting to negotiate an agreement on 
international climate later this year. And so, I wonder what 
conditions or provisions in a new climate change agreement 
would require advice and consent of the Senate, which would 
not, and, you know, will you commit to sending any new 
agreement for the Senate for advise and consent?
    Mr. Egan. Senator, I think each agreement would have to be 
looked at in each negotiation kind of on its facts. And I think 
Secretary Kerry, in his testimony before this committee, has 
identified a number of the facts that would be relevant to 
whether an agreement should be considered a treaty, an 
Executive agreement, or a nonbinding commitment. And I am not 
intimately familiar with the facts behind the climate 
negotiations, but I would commit to working with this committee 
to make sure that you were informed of the status of those 
discussions so that you could have an informed view on the 
nature of the arrangement being negotiated.
    Senator Barrasso. Thank you.
    Ms. Haverkamp, the United States is currently participating 
in this climate negotiation, or will be soon, with the goal of 
reaching an agreement at the end of the year. Will you commit 
to ensuring that any new agreement the administration reaches 
internationally on climate change is brought to the Senate for 
advise and consent?
    Ms. Haverkamp. Thank you for the question, Mr. Chairman.
    My understanding of the status of the negotiations is that 
they are still at a fairly early stage, and focused primarily 
on what the substance of the agreement would be, and not yet 
really on the form. So, it is too early, I think, to say what 
might happen.
    I do know that the mandate that the countries are 
negotiating under is one that creates a real opportunity for 
the United States, which is to create an agreement that 
involves contributions from all countries, not just the 
developed countries, which has been the case in the past. But, 
what form those contributions or commitments might take is 
something that has not yet been decided. The mandate gives 
countries a lot of flexibility in what type of decisions or 
agreements might come out of Paris.
    Senator Barrasso. And then, what role would you personally 
be playing in these negotiations, if you are confirmed, in 
terms of the climate change conference and the negotiations?
    Ms. Haverkamp. As I believe you know, the lead for the U.N. 
climate negotiations at the Department of State is the Special 
Envoy, Todd Stern. And his office leads those negotiations. I 
would anticipate cooperating and collaborating with his 
office----
    Senator Barrasso. But, would he report to you? I mean, I am 
trying to get the pecking order.
    Ms. Haverkamp. He reports to Secretary Kerry.
    Senator Barrasso. And you are not in that chain.
    Ms. Haverkamp. Well, the----
    Senator Barrasso. You would not be, if confirmed, in the 
chain.
    Ms. Haverkamp [continuing]. The arrangement is that there 
is a significant office within the Bureau that I would head, 
which is the Office of Global Change, and which provides a lot 
of the staff support, you might even say ``the backbone'' of 
technical expertise, to the Special Envoy's team. And there is 
a role that that group plays, in terms of the negotiations, in 
terms of technical expertise, and also in overseeing some of 
the adaptation foreign assistance funding that the Department 
provides.
    Senator Barrasso. It seems to me there is some duplication 
of climate change resources at the State Department. And so, I 
would ask, Are you committed to eliminating duplication and 
redundancies at the State Department? You know, I am trying to 
figure out, How does the Office of Climate Change in the Bureau 
interact with the Office of Special Climate Envoy? It does 
seem, I think, to a lot of taxpayers, as duplicate use of 
taxpayer dollars, at this point.
    Ms. Haverkamp. Senator, I certainly embrace the idea of the 
Department using taxpayer dollars efficiently and effectively. 
And, if I am confirmed, I would take a very close look at that.
    Looking more broadly at the question of Special 
Representatives and Special Envoys, it does seem that there are 
certainly times when an issue is of a certain priority or 
urgency, such as the U.S. chairmanship of the Arctic Council, 
which calls for bringing in a special office to lead that 
particular effort. Another example is the Ebola crisis, where 
the State Department created a Special Representative for 
Ebola, and that office has just recently been dismantled, and 
then some of that work brought back to OES.
    Senator Barrasso. Thank you.
    Ms. Occomy, the African Development Bank's goal is to 
promote economic growth, reduce poverty in 53 African member 
countries. The U.S. Director should support, I believe, low-
cost, dependable energy sources as a means to help countries 
spur economic growth. Now, these nations include some of the 
poorest countries in the world. African countries have 
substantial fossil fuel resources, including oil, coal, and 
natural gas. Do you believe the African Development Bank should 
end all financing for projects dealing with fossil fuels?
    Ms. Occomy. Thank you, Chairman, for that question.
    As you know, Africa has vast needs. And promoting access to 
affordable, reliable, efficient energy infrastructure and 
resources is actually a major focus of the African Development 
Bank, which includes projects related to coal, natural gas, and 
oil. If confirmed, I would vote in favor of projects that are 
consistent with U.S. policies and laws and are within the 
African Development Bank's operating guidelines.
    You know, what is really interesting is that the 
administration's policies recognize the unique needs of the 
poorest countries, including those in African, and, as such, 
supports the United States to be in favor of coal power 
generation plant projects, but under certain conditions 
whereby, you know, those projects promote the most efficient 
coal technologies and--in the poorest countries without, you 
know, economically viable alternatives.
    So, in essence, you know, the African Development Bank has 
been long committed to addressing the electricity access needs 
across African. And a demonstration of that is the Bank's 
strong collaboration with the United States in the Power Africa 
Initiative. So, if confirmed, I will continue to support and to 
promote the strong collaboration between the United States and 
the African Development Bank, and in the consideration of, you 
know, reliable, affordable energy infrastructure and services 
projects to help address the electricity needs across Africa, 
particularly sub-Saharan Africa.
    Senator Barrasso. Thank you.
    Senator Markey.
    Senator Markey. Thank you, Mr. Chairman, very much.
    So, Mr. Egan, can you outline what you do believe are the 
limits--again, in terms of the use of the Authorization for the 
Use of Military Force that was passed in 2001, in terms of the 
President's inherent ability to use it to engage affiliates of 
ISIS, ISIL, or other groups? I mean, Senator Murphy asked about 
Boko Haram. Can you envision a situation where that would be 
something that could be justified as having been authorized 
under the 2001 authorization?
    Mr. Egan. Thank you, Senator.
    I think the limits of the existing 2001 authorization are 
that it authorizes the use of military force against al-Qaeda, 
the Taliban, and their associated forces. And I think 
``associated forces'' is an important limitation. It is not 
enough for a group to declare their affiliation with al-Qaeda 
in order to be covered by the authorization. They actually have 
to be, in international law terms, a cobelligerent with al-
Qaeda. They----
    Senator Markey. What is the phrase?
    Mr. Egan. A cobelligerent, sir. So, somebody who, for 
example, posts on the Internet their agreement with al-Qaeda, 
that would not, in and of itself, be enough to come within the 
AUMF. But, there has to be some degree of organizational 
affiliation between the two groups for the 2001 AUMF to apply.
    Senator Markey. Okay. Are there any geographical limits?
    Mr. Egan. No, Senator, not in the existing 2001 AUMF.
    Senator Markey. Yes. So, any group that could meet the test 
that you laid out, regardless of their geographical proximity 
to Afghanistan, could, in fact, be covered, in terms of the 
deployment of U.S. forces.
    Mr. Egan. I think that that is true, Senator, although I 
think that, if you look at the administration's history of its 
reliance on the 2001 AUMF, the groups against whom we have used 
that authority have been fairly limited, although I recognize 
this committee's and the Congress' questions about our use of 
the authority against ISIL.
    Senator Markey. Yes.
    So, Ms. Haverkamp, on climate change, I think there is big 
breakthrough that occurred between this administration and 
China. And I give you a lot of credit for that. Just a huge 
moment in history. As you are looking forward to Paris, do you 
see some additional opportunities to foster cooperation in a 
way that can advance our goals of reducing the dangerous 
greenhouse gases that are being sent up into the atmosphere?
    Ms. Haverkamp. Thank you very much for that question, 
Senator.
    While much of the attention is focused on Paris, and that 
is a very important forum for making advances on climate 
change, there are other fora where progress can and needs to be 
made. One very important one this year is the Montreal 
Protocol, where there has been significant progress recently on 
countries agreeing to try to address HFCs, which is a potent 
greenhouse gas, in that forum. And if I were confirmed, I would 
want very much to be part of the effort to get agreement by the 
end of this year, in the Montreal Protocol, on adding HFCs to 
its mandate and working toward the elimination of them.
    Senator Markey. Secretary Kerry has done a great job in 
focusing upon illegal fishing. How do you see your role in 
furthering that agenda to make sure that we are stamping out 
illegal fishing around the world?
    Ms. Haverkamp. Thank you for asking. That is a really 
important part of the mandate of the State Department and the 
responsibilities of the Bureau I would hope to lead.
    As you know well, something like a billion people around 
the world depend on the oceans for the protein in their diets. 
And many, many people depend on the fishing industry for their 
livelihoods. Illegal, unreported, unregulated fishing is a very 
big problem. And there is a Presidential task force on that, 
which the State Department cochairs with NOAA. I would hope 
very much to be part of the efforts of implementing the work of 
that task force, which includes ramping up enforcement, 
educating people, expanding partnerships with other countries, 
and developing, for the United States, a traceability program.
    Along those lines, I know the folks at the State Department 
are very pleased that this committee gave its advice and 
consent to the Port State Measures Agreement, which is an 
important aspect of addressing this problem. And I understand 
that tomorrow there may even be markup of implementing 
legislation for that and other fisheries agreements, which I 
very much consider important progress in addressing these 
issues. And, if confirmed, I would very much want to make that 
one of my priorities.
    Senator Markey. Yes. And, you know, on the question of 
exportation of American natural gas, there is no question that 
the more of that that we do is--the harder it is going to be to 
meet our greenhouse gas objectives in the United States, 
because it is going to drive up the price of natural gas here 
and, as a result, make coal much more affordable here in the 
United States for utilities to be burning. So, it is going to 
run totally contrary to the goals that we are going to set, 
going forward. The Energy Information Agency said that there 
could be a 50-percent rise in the price of natural gas here 
domestically if we export all the natural gas that the 
Department of Energy is now approving for its export. So, that 
is just going to really drive a stake into our ability to be 
able to meet the promises that we are going to be making.
    And sometimes I think we forget that we should also be 
focusing on exporting of energy efficiency technologies 
overseas. The Ukraine, for example, is the second least 
efficient energy-efficient country in the world. Only 
Uzbekistan is less energy efficient. So, if they just reached 
Poland's level of efficiency, they would back out all of their 
imported natural gas. And I think sometimes we do a disservice 
to these countries by not first focusing upon energy efficiency 
and promising them the larger projects that ignore the easy 
gains that they can make if they, in fact, use energy 
efficiency in a much more expansive way.
    So, I thank you, Mr. Chairman, very much.
    Senator Barrasso. Well, thank you very much, Senator 
Markey.
    Ms. Haverkamp, November 30, 2012, you wrote a blog at the 
Environmental Defense Fund stating, ``The agriculture sector, 
itself, contributes a substantial share of the emissions that 
cause climate change, often in the form of powerful greenhouse 
gases like methane and nitrous oxide.'' In the same blog, you 
say, ``The major emitters' paucity of vision, ambition, and 
urgency, has brought us to the brink of catastrophe.''
    How has the American farmers, who you state are responsible 
for, ``a substantial share of the emissions that cause climate 
change'' brought us, as you say, ``to the brink of 
catastrophe''?
    Ms. Haverkamp. Thank you, Mr. Chairman.
    The factors that contribute to climate change are many. 
But, the land-use sector is a major contributor, especially in 
developing countries. And that includes deforestation, it 
includes overuse of fertilizers, it includes, frankly, a fair 
amount of methane from rice production around the world. So, I 
think that that is a concern that is a worldwide concern, not 
just one that would affect American farmers. And when I was at 
Environmental Defense Fund, one of the things I worked on was 
addressing deforestation and helping rural farmers in India and 
Vietnam with finding low-carbon ways to improve their 
agricultural practices.
    Senator Barrasso. So, from 2011 to 2014, you were director 
of the International Climate Program at the Environmental 
Defense Fund. While in that position, you wrote another blog 
post stating, ``One of Doha's notable developments was that, 
for the first time, the talks broached the subject of 
compensation from rich countries for the loss and damage 
incurred by the most vulnerable nations due to climate 
change.'' You went on to say, ``The sobering reality is that 
grappling with the dangerous effects of climate change can no 
longer be put off to some future date. They are already 
inflicting harm.''
    So, do you believe U.S. taxpayers owe millions of dollars, 
if not more, in climate reparations to small developing 
nations?
    Ms. Haverkamp. No, Senator, I do not. And the issue of loss 
and damage in the U.N. climate negotiations is one that does 
not need to be put in that box. And my understanding, though I 
am not close to the negotiations currently, is that it is in 
the adaptation context, in helping countries to adapt to 
significant effects of climate change that are coming, and some 
of which are already here.
    Senator Barrasso. But, when you said, ``The dangerous 
effects of climate change can no longer be put off. They are 
inflicting harm.'' You blame the agriculture sector, 
contributing a substantial share of the emissions. So, you talk 
about rich countries, like the United States, owing money to 
developing countries, in the form of climate reparations. So, a 
good--it sounds like you believe American agriculture is 
partially to blame for climate change. As the poultry growers 
in Delaware, cotton farmers, Tennessee, cattle ranchers in 
Wyoming--are they responsible? Do they owe money for the loss 
and damage that they have, under, you know, your phraseology, 
``inflicted on developing nations'' because of climate change?
    Ms. Haverkamp. Mr. Chairman, I do not believe that owing 
reparations is part of what I was talking about. I believe that 
the agricultural sector can contribute in a very positive way 
to addressing climate change. And there are many opportunities, 
frankly, to help agriculture farm more efficiently if they are 
able to use more targeted fertilizer or, for example, again, 
with rice, use less water, so that there is less methane 
produced from the rotting of the submerged vegetation. I think 
that one reason that climate change is a profound challenge is 
that there are so many different contributions to the problem, 
and there are not easy solutions. It is something that requires 
a lot of effort and contributions from everyone
    Senator Barrasso. Thank you.
    Ms. Occomy, in your testimony, you committed to being a 
good steward of U.S. financial contributions to the bank. And 
we agree. It is critically important U.S. resources are used in 
a responsible and efficient manner. So, do you believe 
requiring borrowers--people that come to the bank to borrow 
money--that they accept higher-cost energy projects, in terms 
of only being able to borrow for costs for energy projects that 
are approved by some people that have a specific position, from 
a climate change standpoint--do you believe requiring borrowers 
to accept high-cost energy projects is a responsible use of 
taxpayer dollars when affordable, reliable alternatives are 
readily available?
    Ms. Occomy. Thank you, Chairman Barrasso, for that 
question.
    Again, you know, a major focus of the work of the African 
Development Bank is to promote access to modern, reliable, 
efficient energy services and infrastructure.
    Senator Barrasso. Even if it is more expensive. I mean, 
that is the question. Is modern, newer, not been around for 
thousands of years under the ground, but something built up 
and----
    Ms. Occomy. Absolutely. When a project comes before us to 
review and to consider the U.S.'s determination as to whether 
to support that project, it is important to look actually at 
the full lifecycle costs. Sometimes there may be higher costs 
up front relating to implementing a modern, more efficient form 
of energy. But, over the lifecycle of the project, it should 
not be higher. So, I think it is important, not necessary to 
look just at the upfront investment costs, which seem to be 
higher, but to look at the full lifecycle costs of the project 
and to take that into consideration, and also to look at, 
generally speaking, potential environmental and social costs 
associated with not implementing a more modern, efficient, 
reliable source of energy.
    So, I think it is important, you know, not just to look 
solely at perhaps higher costs up front, but to look at the 
full lifecycle costs of the project, the environmental, social 
costs, and so forth.
    Senator Barrasso. So, the social cost of carbon, the 
lifecycle of the project--in my multiple trips to Africa, 
people wanted affordable--first, they wanted electricity. They 
wanted electricity. I mean, it is an astonishing thing, as you 
travel to these areas that just completely go dark at night, 
due to lack of electricity. They want affordable energy today. 
And I do not think any of the many, many people I visited in so 
many communities give any consideration to the lifecycle cost 
of the project or the social cost of the project. And they 
believe--and I agree with them--that their lives could be made 
so much better with available electricity, affordable 
electricity today.
    And I just--so, I think about this, and I think that--you 
know, should the economic feasibility, the potential to provide 
maximum access to energy with maximum efficiency, not be the 
biggest factors when evaluating projects to get electricity 
that is affordable to those people today? Is that not the thing 
that could actually help so many people worldwide, in terms of 
the long-term--you talk about lifecycle--I am talking about 
their life, that lifecycle of that individual, of that human 
being, who views the whole thing as their lifecycle, not some 
investment project lifecycle.
    Ms. Occomy. Thank you, Chairman.
    You know, as I stated earlier, the administration's 
policies do recognize that there are unique needs for the 
poorest countries, particularly those in Africa. And taking 
that into consideration, under certain administration policies, 
the United States can vote in favor of coal power generation 
plants if it is--under certain conditions, if the project 
promotes more efficient coal technologies and there is no other 
economically viable alternative.
    So, I think the criterion really is, you know, looking at 
all of the alternative approaches to address the energy needs, 
particularly for the poorest countries, and then to figure out, 
What is the most economically viable alternative to address 
that need? So----
    But, the United States can support coal projects in 
consideration of the current policies.
    Senator Barrasso. You know, I just recently learned that 
the African Development Bank--because you mentioned the word 
``voting'' and how you can vote--and I learned that the bank is 
actually having elections for the new president, I think, in a 
couple of weeks. I do not even know how that is structured. 
Could you kind of run through that for me?
    Ms. Occomy. Yes. Thank you for raising that point.
    I welcome the African Development Bank's open, transparent, 
merit-based process for selecting a president. The bank will be 
selecting a president on May 28 at its annual meeting of eight 
candidates who have been put forth by their countries. I am not 
aware of who the United States is supporting of the eight 
candidates. But, if confirmed, I look forward to working with 
the newly elected president to implement his or her's vision 
for the African Development Bank, going forward.
    Senator Barrasso. So, is it an annual--you said at their 
annual meeting they are going to do this, of the eight 
candidates. Is it for a 1-year term, and they are just trying 
to figure out how----
    Ms. Occomy. Right. Oh, I am sorry.
    Senator Barrasso [continuing]. How we decide how that----
    Ms. Occomy. Right.
    Senator Barrasso [continuing]. How we vote for----
    Ms. Occomy. Right. So, at the annual meeting, the president 
is elected. And this is after a very deliberative process, 
where the candidates have put forth their positions at 
different venues. In fact, they were here at the spring 
meetings for the World Bank and the IMF, and there was a side 
meeting where they presented their candidacies and agent--you 
know, agendas for those in the international development 
community. So, in general, it is a very open, you know, 
transparent, merit-based process.
    The--excuse me--the term of the president, I believe, is 
for 4 years. And that term can be--he can--he or she----
    Senator Barrasso. Right.
    Ms. Occomy [continuing]. Can be reelected----
    Senator Barrasso. Run for----
    Ms. Occomy [continuing]. For another term.
    Senator Barrasso. Yes.
    Ms. Occomy. And so, President Kaberuka, the end of his 
second term----
    Senator Barrasso. Oh, so--that is right, it is----
    Ms. Occomy [continuing]. Is coming up.
    Senator Barrasso [continuing]. Open now to----
    Ms. Occomy. And so, now that is why----
    Senator Barrasso [continuing]. Eight people.
    Ms. Occomy [continuing]. They are electing a new president.
    Senator Barrasso. Good.
    Thank you. Thank you. That helps clarify.
    Mr. Sabharwal, a quick question for you. I think Senator 
Gardner asked you about Greece being able to make the recent 
750 million euro payment, almost defaulted. They have another 
payment due in June. You know, I would ask if you would talk a 
little bit more about that, what the impact of a default would 
be, how effective this International Monetary Fund's program is 
in Greece, and what is the argument for having the IMF continue 
to loan more money to Greece, you know, given the situation.
    Mr. Sabharwal. Okay. Thank you for the question, Mr. 
Chairman. So, there are multiple questions there.
    First of all, the significance of putting this policy in 
place was, of course, the contagion effect that was going to be 
significantly affecting the eurozone, which, in turn, as one of 
our major trading partners, going to affect the U.S. economy.
    The second point I would make, that, as a percentage of 
total financing from the institutions, the IMF's share has 
actually decreased from about 26 percent, when it was put in 
place, to about 17 percent today. That is because of the 
different, kind of, repayment terms that there are between the 
IMF and the other institutions that are part of the package, 
the ECP and the European Commission.
    We are encouraged that the discussions and negotiations are 
ongoing between the other parties. There was a period when 
there were no discussions, no constructive dialogue. But, we 
think that that period has passed. We are looking at meetings 
taking place later on this week in Latvia on the matter, and we 
believe that a resolution will be reached that will enable 
Greece to pay its obligations to the IMF as they come due. The 
IMF has really never lost money, so it has always been in a 
position that perhaps some nations have fallen into arrears for 
a period of time--for instance, Liberia--but they have 
recovered very successfully. So, we are fully confident that 
the discussions between the institutions and Greece will be 
successful.
    Senator Barrasso. Thank you.
    Senator Udall, additional questions?
    Senator Udall. I would submit most of my--the rest of my 
questions for the record and just thank the witnesses, and 
thank their families for the very supportive role that they 
play.
    Thank you, Mr. Chairman.
    Senator Barrasso. And you make an excellent point there.
    We thank each of you for your testimony, your willingness 
to serve our Nation. It is my hope each of you will be 
dedicated to advancing American interests all across the globe.
    Members of the committee will have an opportunity, until 
the close of business on Thursday the 21st, to submit questions 
for the record. We ask you try to respond promptly in writing 
to the committee in order your nomination to be considered in a 
timely manner.
    Thank you very much. Congratulations, again.
    Hearing is adjourned.
    [Whereupon, at 4:20 p.m., the hearing was adjourned.]

                              ----------                              


              Additional Material Submitted for the Record


Responses of Mileydi Guilarte, Nominated to be U.S. Alternate Executive 
  Director of the Inter-Ameriocan Development Bank, to Questions from 
                        Members of the Committee

                director-designate guilarte's responses 
                   to questions from senator barrasso
    Question. What are the Inter-American Development Bank's relative 
strengths compared to the other international financial institutions? 
In what areas does the Inter-American Development Bank have a 
comparative advantage?

    Answer. As a regional development bank, the Inter-American 
Development Bank (IDB) has a sole focus on Latin America and the 
Caribbean, and its breadth and depth of knowledge of the economic, 
social, and political dynamics of the region and its borrowing member 
countries is its main relative strength. It has offices in every one of 
its borrowing member countries to ensure continuous policy dialogue and 
supervision of its projects. The IDB has developed broad-based 
sectoral/thematic comparative advantage in infrastructure, particularly 
energy; citizen security; and social sector development, including 
conditional cash transfer programs. The IDB also effectively works 
across countries on regional initiatives, including customs and trade 
facilitation, and transport and energy infrastructure.

    Question. In January 2015, Vice President Biden stated, ``An 
integrated North America, working to promote energy security beyond our 
borders can be a major asset for the entire hemisphere. And it's 
profoundly in the self-interest of the United States to see the 
Caribbean countries succeed as prosperous, secure, energy-independent 
neighbors.''

   How can the Inter-American Development Bank help support 
        greater regional interconnection of energy markets and 
        infrastructure?

    Answer. The IDB has a number of ongoing programs that actively 
support greater regional interconnection of energy markets and energy 
infrastructure investment. With significant assistance from the IDB 
over many years, Central American governments recently succeeded in 
integrating their electricity markets through an initiative known as 
the Central American Electrical Interconnection System (SIEPAC). To 
achieve this success, the IDB, in cooperation with the United States, 
facilitated a dialogue in 2013 among Central American governments that 
resulted in a ministerial declaration outlining the governments' 
commitment to regional energy trade. And in November 2014, the Central 
American governments supported a Mesoamerican Energy Investment Summit 
in Guatemala that drew over 500 participants to highlight the 
investment potential in the region and to celebrate the completion of 
the SIEPAC transmission line. The IDB has also provided direct 
financing totaling $253.5 million and an additional $25 million in 
technical assistance to support Central America's energy infrastructure 
and to facilitate creating the regional energy market.
    In addition to Central America, the IDB has been working with 
Andean countries on the Andean regional electric integration process. 
The IDB has provided a variety of technical assistance to help in this 
effort and is the technical secretary of the Andean Electrical 
Interconnection System (SINEA).
    The IDB has done considerable work with the Caribbean to assess the 
potential of regional energy markets, including how best to develop and 
use sustainable sources of energy, such as natural gas and renewable 
energy sources.

    Question. What steps is the Inter-American Development Bank 
currently taking to provide the region with energy security and 
diversification through natural gas?

    Answer. The IDB is committed to financing reliable, low-cost 
generation in Latin America and the Caribbean. The IDB is helping many 
clients develop favorable policy and regulatory frameworks for energy 
access, in addition to support for the private sector to increase the 
use of efficient technologies.
    Now that the SIEPAC is complete, thanks in large part to the 
efforts of the IDB, Central American economies are looking to introduce 
natural gas to substitute for heavy fuel and diesel generation in the 
coming years. To support that effort, the IDB has completed 
prefeasibility studies for natural gas in power generation in both 
Central America and the Caribbean, and is supporting analysis of some 
natural gas projects, including the proposed Mexican natural gas 
pipeline project with El Salvador, Honduras, and Guatemala.

    Question. Do you believe that American liquefied natural gas 
exports would improve energy diversification in the Western Hemisphere 
and promote economic growth in the region?

    Answer. Natural gas can be a useful part of a country's or region's 
energy diversification strategy like renewables and energy efficiency. 
As is the case for any energy infrastructure project, mobilizing the 
finance required to introduce natural gas into a given country requires 
open, transparent, and stable investment climates and appropriate 
legal, policy, and regulatory frameworks.

    Question. What specific actions is the U.S. Government taking to 
work with the Inter-American Development Bank, the World Bank, the 
Organization of American States and American companies in coordinating 
efforts on cross-border trade in electricity, regional interconnection, 
and energy development?

    Answer. Working with regional partners, including the IDB, the 
World Bank, and the Organization of American States (OAS), the United 
States is supporting the Connecting the Americas 2022 initiative 
(Connect 2022) under the Energy and Climate Partnership of the Americas 
(ECPA). The most recent meeting of the ECPA was hosted by the Mexican 
Government on May 25-26, 2015. Connect 2022 seeks to achieve universal 
access to electricity and create a business climate that accelerates 
interconnection and renewable energy. Connect 2022 coordinates 
technical assistance for regulatory and institutional reform, builds on 
extensive bilateral and subregional government efforts to connect grids 
and empower regional energy integration, supports IDB and World Bank 
power sector programs, and catalyzes private investment to promote 
greater access to cleaner and low-cost energy.
    The administration's Central America strategy, as well as the 
Northern Triangle's Alliance for Prosperity--for which the IDB serves 
as Secretariat--also advance Central American energy security by 
emphasizing energy sector reform and development. In addition, 
President Obama, in his April 2015 visit to Panama for the Summit of 
the Americas, launched a new Central American and Caribbean Energy 
Security Task Force to help these smaller markets promote policies that 
attract private investment in lower carbon power sources and reduce 
their dependency on imported oil.
    The U.S. Department of Commerce maintains an Office of Business 
Liaison in the IDB to work with the American business community to 
identify business opportunities, provide advice and counsel on 
strategies for approaching those opportunities, and advocate before the 
IDB and borrowing country governments on behalf of interested American 
businesses.
    The IDB also hosts the Americas Business Dialogue (ABD), which 
serves as a platform for private sector entities in Latin America and 
the Caribbean to engage with governments on potential reforms, and 
which includes efforts to maximize the potential of the region's energy 
market as one of its four areas of focus.

    Question. In 2012, the United States joined leaders of the Western 
Hemisphere in committing to an initiative called ``Connecting the 
Americas 2022.'' The initiative aims to achieve universal access to 
electricity through enhanced electrical interconnection by 2022.

   What is the status of this initiative and what progress has 
        been made in reaching the initiative's goals?

    Answer. Working with regional partners, including the IDB, the 
World Bank, and the OAS, the United States is supporting the Connecting 
the Americas 2022 initiative (Connect 2022) under the ECPA. The most 
recent meeting of the ECPA was hosted by the Mexican Government on May 
25-26, 2015. Connect 2022 seeks to achieve universal access to 
electricity and create a business climate that accelerates 
interconnection and renewable energy. Connect 2022 coordinates 
technical assistance for regulatory and institutional reform, builds on 
extensive bilateral and subregional government efforts to connect grids 
and empower regional energy integration, supports IDB and World Bank 
power sector programs, and catalyzes private investment to promote 
greater access to cleaner and low-cost energy.
    Significant process has been made in Central America, which has 
been a leader in furthering the Connect 2022 efforts. SIEPAC and the 
related regional transmission line, completed in September 2014, now 
connects six Central American countries from Guatemala to Panama and 
establishes a regional market.
    In addition to Central America, the IDB and the United States have 
been working with Andean countries on the Andean Regional electric 
integration process. The IDB has provided a variety of technical 
assistance to help in this effort and is the technical secretary of 
SINEA.

    Question. How is the Connecting the Americas 2022 complementing or 
adding to the work being done at Inter-American Development Bank?

    Answer. The IDB has been a key partner in the Connect 2022 
initiative, providing complementary support to the efforts of the 
United States. With significant assistance from the IDB over many 
years, Central American governments recently succeeded in integrating 
their electricity markets through the SIEPAC initiative. To achieve 
this success, the IDB, in cooperation with the United States, 
facilitated a dialogue in 2013 among Central American governments that 
resulted in a ministerial declaration outlining the governments' 
commitment to regional energy trade. And in November 2014, the Central 
American governments supported a Mesoamerican Energy Investment Summit 
in Guatemala that drew over 500 participants to highlight the 
investment potential in the region and to celebrate the completion of 
the SIEPAC transmission line. The IDB also has provided direct 
financing totaling $253.5 million and an additional $25 million in 
technical assistance to support Central America's energy infrastructure 
and to facilitate creating the regional energy market.
    In addition to Central America, the IDB has been working with 
Andean countries on the Andean Regional electric integration process. 
The IDB has provided a variety of technical assistance to help in this 
effort and is the technical secretary of the SINEA.
    The IDB has done considerable work with the Caribbean to assess the 
potential of regional energy markets, including how best to develop and 
use sustainable sources of energy such as natural gas and renewable 
energy sources.

    Question. What kind of technical assistance and capacity-building 
programs is the United States providing to support the Connecting the 
Americas 2022 in Central America, the Caribbean, and the Andean region?

    Answer. In collaboration with the IDB, the State Department and 
USAID are providing policy and technical assistance to improve regional 
electricity market development and trade in Central America. 
Additionally, the U.S. and Mexican Governments have been working with 
Guatemala on plans to pass through Mexican electricity and gas to 
benefit Central America as a whole.
    In Chile and Peru, the State Department is working with utilities 
to assess interconnection options in support of connecting the Chilean 
and Andean electrical grids.
    In the Caribbean, the U.S. Trade and Development Agency (USTDA) and 
the Overseas Private Investment Corporation (OPIC), in coordination 
with the State Department, USAID, and the Department of Energy, are 
launching a $20 million facility to encourage investment in clean 
energy projects in the region. The facility will provide early-stage 
funding to catalyze greater private and public sector investment in 
clean energy projects.

    Question. The United States is the largest contributor to the 
Inter-American Development Bank. Regional developing countries are 
required to have a controlling majority vote at the Bank. A March 2013 
report by the Inter-American Development Bank's Office of Evaluation 
and Oversight stated that the effectiveness of reforms has been 
limited. The report found that, ``reforms face inherent tensions with 
the demand-driven orientation of the Bank, and approaches are needed 
that can help meaningfully identify where Bank capabilities and 
borrower demand intersect.''

    Please describe the steps you would take to improve the 
effectiveness of the reforms.

    Answer. If confirmed, I would work closely with IDB Management and 
fellow Board members to follow up on the implementation of the 
recommendations from the 2013 Office of Evaluation and Oversight Report 
to improve and deepen the effectiveness of the reforms undertaken as 
part of the Ninth General Capital Increase of the IDB. Some examples of 
those reforms are the recently approved revision of the policy for the 
Independent Consultation and Investigation Mechanism, the IDB's 
grievance mechanism for people affected by IDB projects; the update of 
the IDB's macroeconomic sustainability assessments; the IDB Governors' 
approval of a reform to consolidate the IDB's private sector activities 
within one entity; and improvements to IDB's framework for measuring 
development effectiveness, including enhancing its project completion 
reports and the guidelines for country strategies. If confirmed, I will 
encourage the Office of Evaluation and Oversight to continue reporting 
independently on the status of reforms and seek full implementation of 
action plans from IDB Management to continue improving the 
effectiveness of those reforms.

    Question. What reforms would be your top priority at the Inter-
American Development Bank?

    Answer. If confirmed, I would work to ensure that the consolidation 
of the private sector activities of the IDB is implemented in a way 
that enhances efficiency and improves development effectiveness. I 
would promote sound use of financial resources, including through 
adherence to capital adequacy policies and prudential limits. I would 
also work to further the IDB's results focus to improve the impact of 
IDB activities in addressing inequality and bolstering growth in a 
region that is critical to the national and economic security of the 
United States. Given the IDB's pivotal role as Secretariat for the 
Northern Triangle's Alliance for Prosperity, I would also work to 
ensure that U.S. national interests remain a priority through the 
administration's Central America strategy.

    Question. Do you believe meaningful reforms can take place while 
borrower countries maintain a majority of the voting power?

    Answer. Yes. I believe that a number of meaningful reforms have 
already taken place at the IDB, particularly in the context of the 
Ninth General Capital Increase. As the majority owners of the IDB, the 
borrowing member countries have a strong interest in ensuring that the 
IDB's resources are deployed effectively and efficiently to address the 
challenges in the region. If confirmed, I will seek to work with all 
shareholders, including the borrowing member countries, to further 
implement and deepen the reform agenda at the IDB.

                               __________

    Responses of Jennifer Ann Haverkamp, Nominated to be Assistant 
   Secretary of State for Oceans and International Environmental and 
     Scientific Affairs, to Questions from Members of the Committee

          assistant secretary-designate haverkamp's responses 
                   to questions from senator barrasso
    Question. Are you committed to eliminating duplication and 
redundancies at the Department of State?

    Answer. I strongly support using taxpayer funds in the most 
effective and efficient manner. In properly managing the Department's 
programs and resources, it is of fundamental importance to continually 
look for and implement ways to improve the economy, efficiency, and 
effectiveness of operations.

    Question. In fiscal year 2014, what percentage of the work of the 
Bureau of Oceans and International Environment and Scientific Affairs 
involved international climate change? In fiscal year 2014, what 
percentage of the Bureau's funding was spent on international climate 
change programs?

    Answer. My understanding is that approximately 14 percent of the 
Bureau's salaries and operating expenses in fiscal year 2014 involved 
international climate change. Approximately 78 percent of the Bureau's 
Fiscal Year 2014 Economic Support Fund (ESF) resources were allocated 
for adaptation, clean energy and sustainable landscapes programs.

    Question. Please provide examples of specific projects funded by 
the Bureau for adaptation, clean energy, and sustainable landscapes in 
fiscal year 2014. What were the tangible results and impacts of the 
funding?

    Answer. In the case of adaptation, my understanding is that the OES 
Bureau provides funding for two multilateral specialized adaptation 
funds, the Least Developed Countries Fund (LDCF) and the Special 
Climate Change Fund (SCCF), which support hard-won development gains in 
the face of climate variability and change. Examples include:

   In Nepal, the LDCF is providing community-based early flood 
        warning to nearly 32,000 vulnerable people and reducing the 
        risk of glacial lake outburst floods through artificial 
        drainage.
   In Indonesia, the SCCF is strengthening the resilience of 
        40 rural communities by adjusting subsistence farming practices 
        to be more resilient to variable and extreme climatic 
        conditions and helping communities to improve water resources 
        in the face of projected changes in rainfall patterns.
   In the Philippines, the SCCF is strengthening the 
        resilience of vulnerable farming communities by stimulating 
        private sector engagement in climate risk reduction, developing 
        Weather Index Based Insurance and financial literacy training 
        for farming households, preparing early warning system plans, 
        and conducting vulnerability adaptation assessments.

    In the case of clean energy, my understanding is that, with $20 
million the OES Bureau has provided to the U.S.-Africa Clean Energy 
Finance Initiative (U.S.-ACEF), to date, OPIC and USTDA expect to 
leverage a total of nearly $2 billion in investment to increase access 
to clean energy for Africa. The U.S.-ACEF program is designed to help 
promising clean energy projects develop into viable candidates for 
financing by providing small amounts of early-stage funding for 
essential inputs, such as technical and feasibility studies. U.S.-ACEF 
serves a catalytic role to advance these projects and help attract far 
larger levels of private sector follow-on investment, which can help to 
fuel economic growth in the region while providing access to modern 
clean energy services. For example, in Tanzania, $600,000 was made 
available to a U.S. energy developer to help fund a feasibility study 
which is expected to mobilize $139 million in capital for a 55-megawatt 
solar photovoltaic project at the University of Dodoma (UDOM) campus.
    In the case of sustainable landscapes, my understanding is that the 
OES Bureau supports the SilvaCarbon program, a joint effort of eight 
U.S. Government agencies that enables developing countries to better 
understand and manage their forests by leveraging U.S. technical 
expertise on forest and forest carbon mapping and monitoring. This 
technical capacity provides an essential foundation to enable countries 
to prioritize their efforts to preserve forests, reducing emissions 
from deforestation and safeguarding other benefits like biodiversity 
and water quality. With technical assistance from SilvaCarbon:

   Ecuador has completed its first national forest inventory;
   Colombia was able to generate estimates of forest cover 
        change annually for the first time;
   Gabon has developed a draft national land-use plan; and
   Peru finalized its first forest dynamics map, which 
        provides essential information needed to estimate forest cover 
        and deforestation rates.

    Question. How does the Office of Climate Change in this Bureau 
interact with the Office of the Special Climate Envoy Todd Stern? In 
what areas is there overlap in responsibilities and duties?

    Answer. My understanding is that the Special Envoy for Climate 
Change leads the international climate change negotiations for the U.S. 
Government and oversees policy aspects of international climate 
activities in the State Department. The Special Envoy has an office 
focused on high-level meetings, negotiations, and policymaking.
    OES's Office of Global Change handles a large portfolio of issues. 
In relation to the international climate change negotiations, the 
office provides staff-level support for the Special Envoy and Deputy 
Special Envoys. Its officers serve as working-level negotiators, and 
the office provides staff support for high-level diplomatic meetings to 
advance U.S. objectives. These distinct roles are complementary and I 
understand that there is no duplication in duties between these 
offices, which work closely together.

    Question. Please describe the current staffing, resources, and 
responsibilities of the Office of Climate Change. In addition, please 
describe when the Office was created and under what statutory 
authority.

    Answer. At the present time, the Office of Global Change in the OES 
Bureau has 18 permanent, full-time direct hire staff. It also has 
nonpermanent positions, including six fellows and temporary staff, and 
five contractors. The Office of Global Change provides staff-level 
support and technical expertise for the Special Envoy and Deputy 
Special Envoys in international negotiations related to climate change, 
supports several international climate change initiatives, and oversees 
implementation of OES programs related to climate change. The office 
has expertise on issues such as climate change mitigation, adaptation, 
sustainable landscapes, finance, science, and technology, as well as on 
management of programs. The Office of Global Change was established in 
1989 pursuant to constitutional and statutory authorities regarding 
management of the day-to-day conduct of U.S. foreign relations.

    Question. Please describe the current staffing, resources, and 
responsibilities of the Office of the Special Climate Envoy. In 
addition, please describe when the Office was created and under what 
statutory authority.

    Answer. The Special Envoy for Climate Change serves as the chief 
U.S. negotiator under the United Nations Framework Convention on 
Climate Change (UNFCCC), which was ratified by the United States on 
October 15, 1992. In this role, he helps develop the administration's 
international policy on climate, and represents the United States 
internationally at the ministerial-level in all bilateral and 
multilateral negotiations regarding climate change. Todd Stern was 
appointed on January 26, 2009.
    The Special Envoy's office was established under the constitutional 
and statutory authorities regarding management of the day-to-day 
conduct of U.S. foreign relations. The Special Envoy for Climate Change 
and his immediate office were established to provide greater senior 
level focus to ensure that the interests of the United States are 
adequately protected, given the complex and high-level nature of the 
international climate discussions.
    The Special Envoy's office coordinates the deployment of federal 
expertise and resources in the UNFCCC negotiating process, helping to 
ensure the best possible outcomes for the range of U.S. stakeholders. 
In addition to the Special Envoy, the office currently has seven full-
time staff and three contractors.

    Question. The United States is currently participating in 
international climate negotiations with the goal of reaching an 
agreement by the end of the year.

   What form of an international agreement is the United 
        States advocating for at the international climate change 
        negotiations?
   Will the agreement be legally binding on the United States 
        and other countries, including funding commitments for any 
        provision contained within the agreement?
   What kinds of agreements or commitments currently under 
        negotiation would require congressional action, such as the 
        advice and consent of the Senate, and what might not? Please 
        explain your reasoning.

    Answer. A 2011 decision of the Parties to the United Nations 
Framework Convention on Climate Change, adopted in Durban, South 
Africa, launched a process to develop a ``protocol, another legal 
instrument, or an agreed outcome with legal force under the Convention 
applicable to all Parties. . . . ''
    The Durban decision makes clear that the purpose of a future Paris 
agreement is to further the objective of the Convention (i.e., to avoid 
dangerous anthropogenic interference with the climate), yet leaves the 
Parties with substantial flexibility regarding its form and the legal 
nature of its provisions.
    It is my understanding that at this stage, the international 
discussions are more focused on the substance of the agreement than on 
issues related to its form, such as whether it should be a protocol or 
whether particular provisions should be legally binding. The 
administration has indicated that the United States seeks an agreement 
that is ambitious in light of the climate challenge; that reflects 
nationally determined mitigation efforts in line with national 
circumstances and capabilities; that provides for accountability with 
respect to such efforts; that takes account of evolving emissions and 
economic trends; and that promotes adaptation by parties to climate 
impacts.

   Can the administration enter into a politically binding 
        international agreement without congressional approval?

    Answer. I understand the term ``politically binding'' in your 
question to refer to arrangements that do not give rise to legal 
obligations under U.S. or international law. It is my understanding 
that such nonbinding arrangements have been utilized by Presidents of 
both parties throughout our history to address a range of diplomatic 
and national security matters and do not require congressional 
approval.

   What state, local governing entity or community would not 
        be subject to a politically binding treaty?

    Answer. I understand the term ``politically binding'' in your 
question to refer to arrangements that do not give rise to legal 
obligations under U.S. or international law. Accordingly, any such 
nonbinding arrangements would create no legal obligations for any 
state, local governing entity, or community.

   How does the administration plan to legally commit to the 
        President's November 2014 pledge to cut U.S. greenhouse gas 
        emission to 26-28 percent below 2005 levels by 2025?

    Answer. I understand that the administration does not intend to 
legally commit the United States to the 26-28 percent target. Moreover, 
I understand that the administration favors an approach to the Paris 
agreement under which emissions targets are not legally binding.

   Please describe any existing statutory authorities the 
        administration may expect to rely on to implement the Intended 
        Nationally Determined Contribution (INDC.) Does the 
        administration believe it has the full statutory authority to 
        implement its recently announced INDC now or will the 
        administration need Congress to provide additional authorities?

    Answer. I understand that the administration carefully evaluated 
available statutory authorities in the development of the INDC. My 
understanding is that several U.S. laws, as well as existing and 
proposed regulations thereunder, are relevant to the implementation of 
the U.S. target, including the Clean Air Act (42 U.S.C. Sec. 7401 et 
seq.), the Energy Policy Act (42 U.S.C. Sec. 13201 et seq.), and the 
Energy Independence and Security Act (42 U.S.C. Sec. 17001 et seq.). 
Since 2009, the United States has completed the following regulatory 
actions:
    Under the Clean Air Act, the United States Department of 
Transportation and the United States Environmental Protection Agency 
adopted fuel economy standards for light-duty vehicles for model years 
2012-2025 and for heavy-duty vehicles for model years 2014-2018.
    Under the Energy Policy Act and the Energy Independence and 
Security Act, the United States Department of Energy has finalized 
multiple measures addressing buildings sector emissions including 
energy conservation standards for 29 categories of appliances and 
equipment as well as a building code determination for commercial 
buildings.
    Under the Clean Air Act, the United States Environmental Protection 
Agency has approved the use of specific alternatives to high-global 
warming potential hydrofluorocarbons (high-GWP HFCs) in certain 
applications through the Significant New Alternatives Policy program.
    At this time:
    Under the Clean Air Act, the United States Environmental Protection 
Agency is moving to finalize by summer 2015 regulations to cut carbon 
pollution from new and existing power plants.
    Under the Clean Air Act, the United States Department of 
Transportation and the United States Environmental Protection Agency 
are moving to promulgate post-2018 fuel economy standards for heavy-
duty vehicles.
    Under the Clean Air Act, the United States Environmental Protection 
Agency is developing standards to address methane emissions from 
landfills and the oil and gas sector.
    Under the Clean Air Act, the United States Environmental Protection 
Agency is moving to reduce the use and emissions of high-GWP HFCs 
through the Significant New Alternatives Policy program.
    Under the Energy Policy Act and the Energy Independence and 
Security Act, the United States Department of Energy is continuing to 
reduce buildings sector emissions including by promulgating energy 
conservation standards for a broad range of appliances and equipment, 
as well as a building code determination for residential buildings.

   What was the process the administration used for 
        determining the U.S. commitment? What consultations and inputs 
        from Congress and the American public did the administration 
        seek when working to establish the U.S. commitment?

    Answer. I understand that the administration undertook an 
extensive, rigorous interagency process to identify and assess 
potential emission reductions that are both achievable and cost 
effective. This process examined options to reduce emissions of all 
greenhouse gases in every economic sector through existing statutory 
and executive authorities and voluntary programs.
    It is my understanding that agencies responsible for implementing 
these existing statutory and executive authorities and voluntary 
programs have had wide ranging discussions with stakeholders from the 
public, private and nonprofit sector, including formal and informal 
consultations with Congress.

   What role does the Bureau of Oceans and International 
        Environment and Scientific Affairs have in the international 
        climate change negotiations?

    Answer. The Office of Global Change in the Bureau of Oceans and 
International Environmental and Scientific Affairs handles a large 
portfolio of issues. In relation to the international climate change 
negotiations, the office provides staff-level support and technical 
expertise for the Special Envoy and support for high-level diplomatic 
meetings to advance U.S. objectives, and its staff serve as working-
level negotiators.

   What role will you play in the negotiations? What specific 
        advice, analysis, information, and support is the Office of 
        Climate providing for the international climate negotiations?

    Answer. It is my understanding that over the past 14 years, under 
this administration and the Bush administration, the OES Assistant 
Secretary did not play a direct, formal role in the international 
climate change negotiations.
    The Office of Global Change in the OES Bureau provides staff-level 
support and technical expertise for the Special Envoy and Deputy 
Special Envoy in the negotiations. That includes expertise on issues 
such as climate change mitigation, adaptation, sustainable landscapes, 
finance, science, and technology, as well as program management and 
support for high-level diplomatic meetings. Office staff also serve as 
working-level negotiators.

    Question. In November 2014, President Obama announced a pledge of 
$3 billion to create a brand new Global Climate Fund. His fiscal year 
2016 budget request asks for $500 million to start funding that pledge.

   What was the process the administration used for 
        determining the appropriate commitment to the Global Climate 
        Fund? What consultations did the administration have with 
        Congress on this commitment?

    Answer. It is my understanding that the administration undertook an 
interagency discussion among staff of the Department of Treasury, 
Department of State, Office of Management and Budget and the National 
Security Council to determine what the U.S. pledge should be as a good 
base of funding in the Green Climate Fund's initial few years. The key 
reference point was the Bush administration's $2 billion pledge to the 
Climate Investment Funds (CIFs), which that administration had planned 
to provide over a 3-year period. In light of a legislative requirement 
related to a multiyear pledge, I understand that the administration 
consulted with relevant House and Senate staff 10 days before the GCF 
pledge was announced, and then met with staff on multiple other 
occasions during those 10 days.

   What impact evaluations have been completed on the previous 
        $2 billion in U.S. funding for international climate change 
        already provided to the Climate Investment Funds?

    Answer. My understanding is that an independent evaluation of the 
Climate Investment Funds (CIFs), carried out by the independent 
evaluation departments of the multilateral development banks, was 
released in June 2014 and is available at http://www.cifevaluation.org. 
Because of the early stage of most CIF investments (many of which are 
of very long duration), the evaluation focused more on institutional 
issues such as the process for developing country investment plans. 
Further CIF project-level evaluations will be conducted in the future. 
Each multilateral development bank that participates in the CIFs is 
including CIF programs or projects into their evaluation work program. 
Funding is being set aside in the CIF budget to support impact 
evaluations and other evaluation tools.

   When will the Climate Investment Funds be closed down? What 
        will happen to the funding that remains or comes back into the 
        fund?

    Answer. My understanding is that the Trust Fund Committees of the 
Climate Investment Funds will make a decision in the future about the 
sunset of the CIFs, and when not to accept new contributions into the 
Funds. Then, once all contributions have been committed to projects, no 
new projects will be approved. Because the Climate Investment Funds are 
intended to sunset, my understanding is that financial reflows will 
probably not be used to finance future projects.

   Why is it responsible for the administration to recommend 
        closing down the current Climate Investment Funds and creating 
        a larger brand new Global Climate Fund if no evaluations have 
        been done on the impact and results of U.S. funding to the 
        current international climate change programs?

    Answer. My understanding is that the administration supports having 
a robust evaluation program for the CIFs in order to inform future 
programs at the Green Climate Fund and elsewhere. An independent 
evaluation of the CIFs was released in June 2014 and is available at 
http://www.cifevaluation.org. Because of the early stage of most CIF 
investments (many of which are of very long duration), this evaluation 
focused more on institutional issues such as the process for developing 
country investment plans. We expect that further CIF project-level 
evaluations will be conducted in the future.

                               __________

Responses of Marcia Denise Occomy, Nominated to be U.S. Director of the 
  African Development Bank, to Questions from Members of the Committee

                 director-designate occomy's responses 
                   to questions from senator barrasso
    Question. Do you believe the African Development Bank should 
equally support all types of energy resources in order to provide sub-
Saharan Africa with the electricity it needs to grow their way out of 
poverty?

    Answer. Facilitating energy access and energy security for the 
people of Africa is a priority for the African Development Bank and the 
United States. I understand that energy access is essential to 
promoting the growth of African economies. If confirmed, I will be 
committed to promoting energy access through an appropriate mix of 
energy resources consistent with U.S. laws and policies and the African 
Development Bank's own operating guidelines and policies.

    Question. When reviewing projects at the African Development Bank, 
what criterion is used in determining whether the United States will 
support the project?

    Answer. In reviewing projects at the African Development Bank 
(AfDB), the United States takes into account a range of different 
factors to determine whether or not to support a specific project. 
These factors include the degree to which the project will support a 
country's efforts to reduce poverty, whether the project is well-
designed and mitigates foreseeable risks, whether the project is as 
sustainable (financially and economically) as possible, and whether the 
project meets both the AfDB's policies and U.S. legislative provisions.

    Question. Do you believe economic feasibility and the potential to 
provide maximum access to energy with maximum efficiency must be the 
biggest factors when evaluating projects?

    Answer. Economic feasibility and the degree to which a project 
increases energy access are important, but not the only factors in 
evaluating energy projects. The design of effective energy projects 
will also take into account other factors, such as improving the long-
term financial sustainability of the country's energy sector; reducing 
the potential for corruption in the project; and mitigating the 
environmental, health, and social impacts of the project.

    Question. Coal provides a low cost and reliable energy source which 
is important to countries looking for assistance in poverty alleviation 
and economic development. Do you agree with this statement? If not, why 
not?

    Answer. The U.S. Government is committed to providing energy access 
and energy security to people around the globe as an important element 
of economic development. In the poorest countries, where energy needs 
are often the greatest, I understand that the President's Climate 
Action Plan allows for support for new coal power-generation projects 
under certain conditions that focus on promoting the most efficient 
coal technologies and where no other economically viable alternative 
exists. In wealthier countries, the U.S. may support new coal-fired 
power projects that deploy carbon capture and sequestration (CCS) 
technologies.

    Question. Please list and provide information on all the countries 
in the African Development Bank that have oil, natural gas, and coal 
resources.

    Answer. According to the latest data available from the Energy 
Information Agency at the Department of Energy, the African Development 
Bank's regional member countries with the largest reserves of oil are 
Libya, Nigeria, Algeria, and Angola. The largest proved reserves of 
natural gas are in Nigeria, Algeria, Mozambique, Egypt, Libya, and 
Angola. The largest recoverable reserves of coal are in South Africa, 
Zimbabwe, Mozambique, Tanzania, and Nigeria. Complete data for all 
countries with any proven reserves are below [Figure 1.] .

    Question. What proportion of procurement contracts at the African 
Development Bank and the African Development Fund is awarded to U.S. 
businesses? What proportion of these contracts is awarded to Chinese 
businesses? What specific steps would you advocate for at the African 
Development Bank and the African Development Fund to increase the 
percentage of contracts awarded to U.S. companies?

    Answer. In 2014, U.S. businesses received 0.54 percent of all 
procurement contracts by number and 0.26 percent of procurement 
contracts by value. Chinese business received 1.94 percent of contracts 
by number and 24.28 percent by value. If confirmed, I will advocate for 
maintaining transparent and competitive procurement practices and an 
increased focus on a value-for-money approach that considers costs over 
the full life cycle of projects rather than merely the lowest priced 
bid. U.S. firms are typically better positioned when such a value-for-
money approach is taken. I understand that the African Development Bank 
is currently reviewing its procurement policies, which provides an 
opportunity to encourage a better focus on value-for-money approach to 
be reflected in the African Development Bank's updated procurement 
policies.


                               Figure 1.

    Question. What do you believe is an appropriate role for China to 
play at the African Development Bank and African Development Fund?

    Answer. China is a nonregional shareholder of the African 
Development Bank and a donor to the African Development Fund. China 
should continue to engage constructively with other AfDB shareholders 
and AfDB Management to support Africa's development. As China's income 
and role in the global economy grows, it should support the poorest 
countries by contributing more to the concessional window, the African 
Development Fund.

    Question. What is your view of China's recently launched Asian 
Infrastructure Investment Bank and the Chinese investment efforts in 
Africa? How will these efforts complement or duplicate efforts at the 
African Development Bank?

    Answer. It is widely acknowledge that there is a pressing need to 
enhance infrastructure investment in Africa and around the world. China 
can provide an important contribution to Africa's development through 
its infrastructure investments, provided they maintain high-quality 
standards and operate within strong safeguards including established 
fiduciary, economic, and social safeguards. I believe that any new 
multilateral financial institution should share the international 
community's strong commitment to the high-quality standards of the 
existing multilateral development banks, including the African 
Development Bank. My understanding is that the AIIB intends to focus 
exclusively in Asia. However, if confirmed, I would encourage the 
African Development Bank to seek to ensure that any institution 
providing financing in Africa maintains these high-quality standards 
and operational safeguards.

    Question. Please describe the planned $2 billion African 
Development Bank--People's Bank of China African Common Growth Fund and 
the U.S. view of this initiative. Is the United States considering a 
similar arrangement for the administration's Power Africa Initiative?

    Answer. China created and will contribute $2 billion, over 10 
years, to the Africa Growing Together Fund (AGTF) that will be housed 
at the AfDB. The AGTF will cofinance projects eligible for AfDB 
financing using a variety of funding modalities. The United States 
welcomes the additional financing that China will be making available 
to support Africa's development through the AGTF, especially as all 
projects financed from the AGTF must use the AfDB's standards, 
including those related to environmental and social safeguards and 
procurement rules.
    While the United States has not considered a designated funding 
mechanism for its Power Africa partnership with the AfDB, the AfDB 
itself has pledged $3 billion of its own funds toward reaching the 
goals set by Power Africa. Power Africa is working closely with the 
AfDB to identify priority Power Africa transactions and allocate 
resources accordingly. In addition, both the AfDB and Power Africa have 
seconded staff members to the other's organization to enhance 
coordination. Power Africa has also provided $3 million to the African 
Legal Support Facility, an AfDB initiative that strengthens African 
countries' legal expertise and negotiating capacity in debt management 
and litigation, natural resources and extractive industries management 
and contracting, investment agreements, and related commercial and 
business transactions.

    Question. The African Development Bank President Kaberuka 
recommended combining the African Development Bank and the African 
Development Fund lending windows into a single facility.

   Do you support this proposal? Did the 13th replenishment of 
        the African Development Fund replenishment negotiations address 
        this matter? What are the benefits and risks of providing 
        market-rate and concessional assistance through the same 
        facility?

    Answer. I understand that while President Kaberuka expressed 
interest in this idea, AfDB Management has not actively proposed it 
during the negotiations on the 13th replenishment of the African 
Development Fund (AfDF) or since. The United States welcomes ideas from 
the multilateral development banks on how they can use innovative 
financial options to expand their lending capacity without additional 
resources from shareholders, and I understand that Asian Development 
Bank shareholders unanimously approved a similar proposal recently. I 
also understand that this approach would be more difficult for the AfDB 
due to the status of the AfDB and the AfDF as separate legal entities. 
The main benefit of such an approach is that the equity built up in the 
concessional window can be leveraged to create additional concessional 
and nonconcessional lending capacity. Risks include the need to ensure 
that the extra resources generated continue to benefit poorer countries 
and the need to maintain an appropriate level of concessionality in 
lending to these countries.

    Question. The elections for a new President of the African 
Development Bank is taking place on May 28, 2015.

   Who is currently running for President of the African 
        Development Bank and what are the main priorities of each of 
        the candidates?

    Answer. Dr. Akinwumi Adesina, the Minister of Agriculture from 
Nigeria, was elected as the next President of the AfDB on May 28, 2015. 
The other candidates were:

      Jaloul Ayed, former Minister of Finance, Tunisia;
      Sufian Ahmed Beker, Minister of Finance, Ethiopia;
      Kordje Bedoumra, Minister of Finance, Chad;
      Cristina Duarte, Minister of Finance, Cabo Verde;
      Samura Kamara, Minister of Foreign Affairs, Sierra Leone;
      Thomas Zondo Sakala, former Vice President of the AfDB, Zimbabwe; 
and
      Birama Sidibe, Vice President of the Islamic Development Bank, 
Mali.

    Each candidate's vision statement is available at www.afdb.org/en/
news-and- events/article/eight-candidates-in-the-running-for-the-next-
afdb-presidency-submit-their-vision-for-the-bank-and-africa-14111/. All 
of the candidates prioritized building on the legacy of President 
Donald Kaberuka, supporting the private sector in Africa, reducing 
Africa's infrastructure deficit, enhancing inclusive growth and 
creating jobs for youth and women, building the capacity of fragile and 
conflict-affected states, and attracting the staff that the AfDB needs 
to play a leading role in these areas.

    Question. What criterion does the United States use when deciding 
who to vote for as President of the Bank? What is your evaluation of 
these candidates?

    Answer. The United States seeks candidates with a strong vision for 
supporting private sector-led growth and poverty reduction in Africa, a 
sound understanding of the AfDB's comparative advantages, a clear 
agenda for implementing the institutional reforms needed to make the 
AfDB more effective and to attract and retain high-quality managers and 
staff, and the ability to represent the AfDB as a leading development 
institution in Africa and globally. I welcome that there were several 
qualified candidates contesting the election.

    Question. Which of the candidates is the United States supporting 
at the May 28, 2015 election?

    Answer. The United States welcomed that there were several well-
qualified candidates that contested the election. I was not involved in 
the voting process for the United States. If confirmed, I look forward 
to working with Dr. Adesina to continue strengthening the AfDB so that 
it remains a leading contributor to Africa's development and a key 
partner for U.S. development efforts.

                               __________

  Responses of Brian James Egan, Nominated to be Legal Adviser to the 
    Department of State, to Questions from Members of the Committee

                       brian egan's responses to 
                     questions from senator corker
    Question. Congress has long understood that the 2001 AUMF covered: 
(1) al-Qaeda; and (2) ``associated forces'' of al-Qaeda. Please 
describe the administration's legal view of why it is that ISIS is 
covered by the 2001 AUMF.

    Answer. The 2001 AUMF authorizes the use of force against al-Qaeda, 
the Taliban, and associated forces. Based on ISIL's long-standing 
relationship with al-Qaeda and Usama bin Laden; its long history of 
conducting, and continued desire to conduct, attacks against U.S. 
persons and interests; the extensive history of U.S. combat operations 
against ISIL dating back to the time the group first affiliated with 
al-Qaeda in 2004 and was known as al-Qaeda in Iraq; and ISIL's 
position--supported by some individual members and factions of al-
Qaeda-aligned groups--that it is the true inheritor of Usama bin 
Laden's legacy, the administration has concluded that the President may 
rely on the 2001 AUMF as statutory authority for the use of force 
against ISIL, notwithstanding the public split between al-Qaeda's 
senior leadership and ISIL. A contrary interpretation of the statute 
would allow al-Qaeda and its cobelligerents, rather than the President 
and the Congress, to control the scope of the AUMF by splintering into 
rival factions while still continuing to prosecute the same conflict 
against the United States.

    Question. Does the administration currently have statutory or 
article II authority to defend U.S.- or coalition-trained forces in 
Iraq and Syria if those forces come under direct threat from ISIS, al-
Nusra, Assad regime forces, Hezbollah, or any other armed groups?

    Answer. The administration's position is that the 2001 AUMF would 
provide authority to conduct military operations in defense of U.S.- or 
coalition-trained forces against ISIL, the Nusrah Front, and other 
groups who are either part of or associated forces of al-Qaeda, in the 
same manner as it does for ongoing U.S. operations against those 
groups. The administration also believes that the 2002 Iraq AUMF would 
provide legal authority for military operations in some circumstances 
against ISIL in defense of U.S.- or coalition-trained forces in Syria.
    The question whether the 2001 AUMF, the 2002 AUMF, or the 
President's article II authority would provide legal authority to 
defend those forces against Assad regime forces or other armed groups 
would be more difficult.
    The 2001 AUMF authorizes the President to use ``all necessary and 
appropriate force against those nations, organizations, or persons he 
determines planned, authorized, committed, or aided the terrorist 
attacks that occurred on September 11, 2001, or harbored such 
organizations or persons, in order to prevent any future acts of 
international terrorism against the United States by such nations, 
organizations or persons.'' To be an ``associated force'' of al-Qaeda a 
group must be both (1) an organized, armed group that has entered the 
fight alongside al-Qaeda, and (2) a cobelligerent with al-Qaeda in 
hostilities against the United States or its coalition partners. The 
determination that a particular group is an associated force is made at 
the most senior levels of the U.S. Government, following reviews by 
senior government lawyers and informed by departments and agencies with 
relevant expertise and institutional roles, including all-source 
intelligence from the U.S. intelligence community.
    The 2002 AUMF authorizes the President to ``use the Armed Force of 
the United States as he determines to be necessary and appropriate in 
order to--(1) defend the national security of the United States against 
the continuing threat posed by Iraq; and (2) enforce all relevant 
United Nations Security Council resolutions regarding Iraq.'' Although 
the threat posed by Saddam Hussein's regime in Iraq was the focus of 
the 2002 AUMF, the statute, in accordance with its express goals, has 
always been understood to authorize the use of force for additional 
purposes. Those purposes include helping to establish a stable, 
democratic Iraq to succeed Saddam Hussein's regime and addressing 
terrorist threats emanating from Iraq. At a minimum, to the extent that 
military operations against ISIL in Syria are necessary in order to 
achieve these purposes, they are authorized by the 2002 AUMF.
    The President has authority under the Constitution to use force not 
amounting to ``war'' in the constitutional sense, where he reasonably 
determines that such force serves a sufficiently important national 
interest, at least insofar as the Congress has not specifically 
restricted it by statute. Whether the use of military force constitutes 
a ``war'' within the meaning of the Declaration of War Clause would, as 
described in previous opinions from the Justice Department's Office of 
Legal Counsel, involve the need for a fact-specific assessment of the 
anticipated nature, scope, and duration of the planned military 
operations and of the exposure of U.S. military personnel to 
significant risk over a substantial period.
    As a policy matter, the nature and extent of the support that the 
United States is prepared to provide to U.S.-trained Syrian forces is 
critically important and under active consideration, but as of this 
point has not been decided. If confirmed as Legal Adviser, I would look 
forward to working closely with this committee to explain the legal 
issues related to any decision that is made.

    Question. With U.S. forces on the ground in Iraq and conducting 
activities in both Iraq and Syria, what authority to protect and defend 
those forces, if any, is currently available under the 2001 or 2002 
AUMFs, and is there something additional you gain under the 2002 AUMF 
but not the 2001 AUMF?

    Answer. The administration's position is that the 2001 AUMF and, at 
least in some circumstances, the 2002 AUMF provide legal authority for 
the ongoing U.S. military operations in Iraq and Syria, including the 
authority to use military force in defense of U.S. forces.
    The 2001 AUMF authorizes the President to use ``all necessary and 
appropriate force against those nations, organizations, or persons'' he 
determines were responsible for the 9/11 attacks, and it is not limited 
to a specific country or geographic region. This authorization clearly 
covers Usama bin Laden and al-Qaeda, and Congress and the federal 
courts have confirmed the Executive branch's view that the AUMF also 
authorizes the use of force against associated forces of al-Qaeda, each 
of which must be both (1) an organized, armed group that has entered 
the fight alongside al-Qaeda, and (2) a cobelligerent with al-Qaeda in 
hostilities against the United States or its coalition partners.
    The 2001 AUMF authorized the use of force against ISIL beginning in 
at least 2004, when ISIL, then known as al-Qaeda in Iraq, pledged its 
allegiance to Bin Laden. Bin Laden then publicly endorsed the group as 
al-Qaeda's official affiliate in Iraq. After its formal affiliation 
with al-Qaeda, the group conducted numerous terrorist attacks against 
the United States and its coalition partners, and in response, the 
United States engaged in extensive combat operations against it.
    The 2002 Iraq AUMF provides an alternative source of legal 
authority for U.S. military operations against ISIL in Iraq and, at 
least in some circumstances, in Syria. Among other things, the 2002 
AUMF authorizes the use of force to ``defend the national security of 
the United States against the continuing threat posed by Iraq,'' 
including in defense of U.S. forces.
    The President has made clear that he would welcome bipartisan 
congressional action on a new, limited authorization for the use of 
military force that would specifically address the threat posed by 
ISIL. The President's AUMF proposal, among other things, would repeal 
the 2002 AUMF because the President believes the authority he would 
have under his proposal and the 2001 AUMF would be sufficient to 
conduct the operations that are ongoing in Iraq and Syria, including 
any operations to protect and defend the U.S. Forces who are part of 
those operations.

    Question. The administration believes it has authority under the 
2001 AUMF to use ``all necessary and appropriate force'' against ISIS. 
Does the administration have article II authority, on its own, to 
conduct the military activities we are currently engaged in against 
ISIS, or is congressional authorization necessary?

    Answer. The administration has concluded that the 2001 AUMF 
provides legal authority to use military force against ISIL in Iraq and 
Syria. The administration has also concluded that the 2002 Iraq AUMF 
provides legal authority for military operations against ISIL in Iraq 
and, in at least some circumstances, against ISIL in Syria. The 
military activities against ISIL in which the United States is 
currently engaged in Iraq and Syria are being conducted pursuant to 
those statutory authorities. Because of its conclusion that the 2001 
and 2002 AUMFs provide the necessary legal authority for the President, 
the administration has not developed a legal position on the question 
posed; namely, whether the President could rely on article II authority 
alone to continue to conduct the ongoing military activities we are 
currently engaged in against ISIL.
    The Constitution recognizes important roles for both the President 
and the Congress in relation to the use of military force by the United 
States. As the administration has previously indicated to this 
committee, the President has authority under the Constitution to use 
force not amounting to ``war'' in the constitutional sense where he 
reasonably determines that such force serves a sufficiently important 
national interest, at least insofar as the Congress has not 
specifically restricted it by statute. Any analysis of the President's 
constitutional authorities to conduct these same operations in the 
absence of the AUMFs would therefore require a fact-specific assessment 
of the national interests served by these operations and their 
anticipated nature, scope, and duration, among other factors.
    The administration has been clear in describing the critical 
national interests that are served by our ongoing efforts to degrade 
and ultimately defeat ISIL in Iraq and Syria. At the same time, this 
and previous administrations have recognized the congressional 
interest, including as reflected in the War Powers Resolution, in 
providing express congressional authorization for the use of force by 
the U.S. military in major, prolonged conflicts such as the wars in 
Vietnam and Korea.
    Regardless, the President has made clear that he believes that it 
is important that decisions to send members of our military into harm's 
way enjoy the support of Congress and the American people. This is the 
reason that the President has submitted the proposed ISIL AUMF to the 
Congress. I share that view, and, if confirmed, I would use my voice 
within the administration to support robust consultation with Congress 
on such matters, and to ensure that deliberations and consultations 
with Congress are fully informed by the important constitutional 
responsibilities of both branches of government in this area.

                               __________
                      brian egan's response to a 
                      question from senator cardin
    Question. Given the foreign policy objectives of the section 1504 
rule, please discuss how you intend to engage with the SEC to ensure 
that they issue a strong rule that serves U.S. foreign policy goals.

    Answer. Section 1504 of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act requires reporting issuers engaged in the 
commercial development of oil, natural gas, or minerals to disclose in 
an annual report certain payments to the United States or foreign 
governments for the commercial development of oil, natural gas, or 
minerals. Section 1504 advances U.S. foreign policy interests by 
ensuring transparency and reducing corruption in the extractives 
sector, supporting international initiatives related to extractive 
industry transparency, and more broadly, promoting energy security and 
supporting global economic development.
    If confirmed as Legal Adviser, I will work with the State 
Department's policy bureaus to ensure that the SEC is appropriately 
aware of these foreign policy interests so that they may be given due 
regard in the rulemaking process.
                               __________
                       brian egan's responses to 
                    questions from senator barrasso
    Question #1. Do you believe a resolution adopted by the U.N. 
Security Council can preempt U.S. law?

    Answer. No. U.N. member states are required under international law 
to accept and carry out decisions of the Security Council in accordance 
with the Charter of the United Nations. This does not, however, preempt 
the obligation to comply with applicable provisions of U.S. domestic 
law. When deciding whether to support or oppose proposed Security 
Council resolutions, the Department of State, working with other 
departments and agencies, carefully considers whether actions that 
would be required under the resolutions would be consistent with U.S. 
law. The United States has the right, under Article 27 of the U.N. 
Charter, to veto resolutions that would impose requirements that would 
be inconsistent with U.S. domestic law and thereby prevent their 
adoption.

    Question #2. Could the executive branch use a U.N. Security Council 
resolution to justify action that U.S. law would otherwise not allow?

    Answer. No. The executive branch cannot take actions that it is 
prohibited from taking under U.S. law. Thus, the fact that a U.N. 
Security Council resolution authorizes a particular action will not 
enable the executive branch to carry it out if the action is 
impermissible under U.S. law.

    Question #3. If the U.N. Security Council adopted a resolution 
requiring countries to lift sanctions on Iran, would the U.S. be 
obligated to comply?

    Answer. In the case of Iran, the Security Council adopted a series 
of resolutions beginning in 2006 requiring U.N. member states to impose 
certain sanctions on Iran. When the Security Council makes a decision 
requiring U.N. member states to impose sanctions, U.N. member states 
are required under international law to accept and carry out that 
decision in accordance with the Charter of the United Nations. A 
Security Council decision to lift these requirements would relieve U.N. 
member states of their international legal obligation to maintain the 
sanctions on Iran that were the subject of the Security Council 
resolutions, but would not prevent the United States or other U.N. 
member states from continuing to impose sanctions on a national basis 
under their domestic law. In any event, as explained in response to 
Question #1, the United States has the right, under Article 27 of the 
U.N. Charter, to veto resolutions that would impose requirements that 
would be inconsistent with U.S. domestic law and thereby prevent their 
adoption.

    Question #4. What types of agreements are constitutionally required 
to take the form of a treaty and must be submitted to the Senate for 
advice and consent to ratification?

    Answer. The Constitution's text does not specify particular types 
of agreements that must take the form of a treaty. As a matter of 
practice, the United States has entered into a variety of agreements 
approved by statute rather than through the procedures specified in the 
Constitution's Treaty Clause. These include the United Nations 
Headquarters Agreement; agreements establishing the World Bank, the 
International Monetary Fund, and other international financial 
institutions; the agreement establishing the International Labor 
Organization; the SALT I Interim Agreement; and trade agreements 
including NAFTA and the agreement establishing the World Trade 
Organization. This practice suggests that the executive branch, Senate, 
and House of Representatives together have understood themselves to 
have significant latitude to use regular legislative procedures as an 
alternative to the procedures specified in the Treaty Clause for the 
approval of international agreements when collectively they deem it 
appropriate to do so.
    If confirmed, I would welcome the opportunity to work with this 
committee on issues related to the approval of treaties and other forms 
of international agreements. Administrations of both political parties 
have a history of working with the Congress to identify international 
agreements that would be subject to the Constitution's Treaty Clause 
and agreements that could be concluded with other forms of 
congressional approval or as a sole executive agreement.

    Questions #5 & #6. Is the President only able to enter sole 
Executive agreements concerning matters under his exclusive 
constitutional authority, or may these agreements also concern matters 
over which authority is shared with Congress?
    What domestic or international legal effect do ``sole executive 
agreements'' have when there is a conflicting federal statute?

    Answer. In analyzing the scope of the President's authority with 
respect to international agreements, the Supreme Court has referred to 
the framework outlined in Justice Jackson's concurrence in Youngstown 
Sheet and Tube v. Sawyer, 343 U.S. 579 (1952). That framework indicates 
that the President's authority is at its maximum when he acts pursuant 
to an express or implied authorization from Congress; that when he acts 
in the absence of either a congressional grant or denial of authority, 
he can only rely upon his own independent powers; and that when the 
President takes measures incompatible with the expressed or implied 
will of Congress, his power is at its lowest ebb, for then he can rely 
only upon his own constitutional powers minus any constitutional powers 
of Congress over the matter. Id. at 635-638.
    Consistent with this framework, the validity of any particular 
Executive agreement as a matter of U.S. law would depend on factors 
including the particular matter addressed by the agreement, the extent 
of the President's independent constitutional authority with regard to 
that matter, and whether Congress had legislated with respect to the 
matter. For example, where an Executive agreement conflicts with a 
federal statute, Justice Jackson's concurrence indicates that ``Courts 
can sustain exclusive Presidential control in such a case only by 
disabling the Congress from acting upon the subject.'' It further 
observes that ``Presidential claim to a power at once so conclusive and 
preclusive must be scrutinized with caution.''
    The fact that an international agreement may conflict with a 
federal statute does not affect the status of the agreement as a matter 
of international law. In Medellin v. Texas, the Supreme Court observed 
that, although the President lacked the authority as a matter of U.S. 
law to give effect to an obligation under an international agreement at 
issue in the case, ``no one disputes that it constitutes an 
international law obligation on the part of the United States.'' 552 
U.S. 491, 536 (2008).

    Question #7. Under existing law, the United States is required to 
suspend direct foreign assistance to the government of any country 
whose duly elected head of government is deposed by military coup 
d'etat or decree or a coup d'etat or decree in which the military plays 
a decisive role. How is a coup d'etat defined under existing U.S. law?

    Answer. The annual Department of State, Foreign Operations, and 
Related Programs Appropriations Acts provides that certain funds in the 
Act may not ``be obligated or expended to finance directly any 
assistance to the government of any country whose duly elected head of 
government is deposed by military coup d'etat or decree or, after the 
date of enactment of this Act, a coup d'etat or decree in which the 
military plays a decisive role.'' This ``military coup restriction'' 
contains three elements that must be met in order to trigger the 
restriction: (1) whether the head of government was duly elected; (2) 
whether the head of government was removed from office, and (3) whether 
the removal was effectuated by the military or whether the military 
played a decisive role in the removal. Whether the military coup 
restriction could be triggered in connection with a particular change 
in government requires a detailed factual inquiry into all of the 
relevant circumstances.

    Question #8. As noted, appropriations law requires the termination 
of certain foreign assistance if an elected head of government is 
deposed by a coup. At the time, an administration official was asked if 
it is ``still U.S. policy that we are not determining that a coup was 
carried out in July in Egypt.'' He replied: ``Nothing has changed in 
terms of approaching what you called the coup restriction; didn't make 
a determination, haven't made a determination, don't think we need to 
make a determination, are acting consistent with the provisions of the 
law and we'll continue to do so.''

   In your opinion, did a coup occur in Egypt when Egyptian 
        President Morsi was deposed from power?

    Answer. The military coup restriction in the annual Department of 
State, Foreign Operations, and Related Programs Appropriations Act does 
not require a determination to be made with respect to a particular 
change in government, so long as any assistance provided to the 
relevant government could be provided even if the restriction were 
triggered. Accordingly, the administration took action to restrict 
certain assistance to Egypt consistent with the military coup 
restriction until new legislation was enacted with regard to assistance 
for the Government of Egypt.
    The administration decided it was not in U.S. foreign policy or 
national security interests to characterize the events in Egypt as 
either a military coup or not a military coup. Such a characterization 
would implicate a highly polarized debate in Egypt. The administration 
concluded that inserting the United States into that debate would 
undermine U.S. interests in a peaceful resolution to the crisis, risk 
alienating roughly half of the population in Egypt, and potentially put 
U.S. facilities and personnel in the region at increased risk.

    Question #9. After a head of government is deposed from power, how 
long does the State Department have to determine if a coup took place?

    Answer. The military coup restriction in the annual Department of 
State, Foreign Operations, and Related Programs Appropriations Act does 
not require a determination to be made with respect to a particular 
change in government, so long as any assistance provided to the 
relevant government could be provided even if the restriction were 
triggered.
    As explained in response to Question #7, three elements must be met 
in order to trigger the restriction: (1) whether the head of government 
was duly elected; (2) whether the head of government was removed from 
office, and (3) whether the removal was effectuated by the military or 
whether the military played a decisive role in the removal. Whether 
this restriction could be triggered in connection with a particular 
change in government requires a detailed factual inquiry into all of 
the relevant circumstances, and in some instances the facts on the 
ground may not be clear for a period of time.

    Questions #10 & #11. How is it consistent with the law to never 
make a determination whether a coup actually happened when a leader is 
deposed from power?
    What other statutory regimes is this method of legal analysis 
applied to?

    Answer. The military coup restriction in the annual Department of 
State, Foreign Operations, and Related Programs Appropriations Acts 
provides that certain funds in the Act may not ``be obligated or 
expended to finance directly any assistance to the government of any 
country whose duly elected head of government is deposed by military 
coup d'etat or decree or, after the date of enactment of this Act, a 
coup d'etat or decree in which the military plays a decisive role.'' If 
the standard in the legislation is met, assistance must be restricted 
consistent with the military coup restriction. On the other hand, so 
long as any assistance provided to the relevant government could be 
provided even if the military coup restriction were triggered, it is 
consistent with the law not to make a determination. Many countries 
receive no assistance from the U.S. Government; others receive 
assistance that would not be impacted by the military coup restriction 
(for example, assistance only for nongovernmental activities). 
Therefore, the applicability of this provision varies with respect to 
the nature of our assistance. The Department of State's efforts to 
ensure compliance with the military coup restriction are consistent 
with its broader efforts to ensure compliance with all applicable 
funding restrictions.

    Question #12. There has been a lot of discussion about the type and 
form of a comprehensive agreement on Iran's nuclear program. The 
administration claims that a final deal on Iran's nuclear program will 
be an Executive agreement instead of a treaty requiring the advice and 
consent of the Senate for ratification. What is the legal basis for 
this position?

    Answer. The administration has made clear that the P5+1 discussions 
with Iran are directed toward the conclusion of a nonbinding 
arrangement. Nonbinding arrangements are not Executive agreements in 
that they do not create legal obligations under U.S. or international 
law. As White House Chief of Staff Denis McDonough indicated in a March 
14, 2015, letter to Senator Corker, such nonbinding arrangements have 
been utilized by Presidents of both parties throughout our history to 
address a range of diplomatic and national security matters and do not 
require congressional approval.

    Question #13. What conditions or provisions in a new climate change 
agreement would not require the advice and consent to ratification by 
the Senate?

    Answer. It is my understanding that the international discussions 
on a new climate change agreement are continuing and have not resulted 
in any final decisions on any conditions or provisions of the new 
agreement. Accordingly, I am not in a position to speculate as to 
whether any of the terms of the final agreement will require Senate 
advice and consent.
    The administration will continue to consult with the committee 
regarding the negotiations. During his confirmation hearing, Secretary 
Kerry assured this committee that any international agreement brought 
into force for the United States will be done consistent with the U.S. 
Constitution.

    Question #14. What form of agreement is the United States 
advocating for during the international negotiations? Has the 
administration been pushing for the agreement to be legally binding 
during the negotiations?

    Answer. A 2011 decision of the Parties to the United Nations 
Framework Convention on Climate Change, adopted in Durban, South 
Africa, launched a process to develop a ``protocol, another legal 
instrument, or an agreed outcome with legal force under the Convention 
applicable to all Parties. . . . ''
    The Durban decision makes clear that the purpose of a future Paris 
agreement is to further the objective of the Convention (i.e., to avoid 
dangerous anthropogenic interference with the climate), yet leaves the 
Parties with substantial flexibility regarding its form and the legal 
nature of its provisions.
    It is my understanding that at this stage the international 
discussions are more focused on the substance of the agreement than on 
issues related to its form, such as whether it should be a protocol or 
whether particular provisions should be legally binding. The 
administration has indicated that the United States seeks an agreement 
that is ambitious in light of the climate challenge; that reflects 
nationally determined mitigation efforts in line with national 
circumstances and capabilities; that provides for accountability with 
respect to such efforts; that takes account of evolving emissions and 
economic trends; and that promotes adaptation by Parties to climate 
impacts.

    Question #15.Will the final agreement be legally binding on the 
United States and other countries, including funding commitments for 
any provision contained within the agreement?

    Answer. Please see response to Question #14.

    Question #16. Can the administration enter into a politically 
binding international agreement without congressional approval?

    Answer. I understand the term ``politically binding'' to refer to 
arrangements that do not give rise to legal obligations under U.S. or 
international law. As White House Chief of Staff Denis McDonough 
indicated in a March 14, 2015, letter to Senator Corker in response to 
questions regarding negotiations with Iran, such nonbinding 
arrangements have been utilized by Presidents of both parties 
throughout our history to address a range of diplomatic and national 
security matters and do not require congressional approval.

    Question #17. What state, local governing entity, or community 
would not be subject to a politically binding agreement?

    Answer. I understand the term ``politically binding'' to refer to 
arrangements that do not give rise to legal obligations under U.S. or 
international law. Accordingly, any such nonbinding arrangements would 
create no legal obligations for any state, local governing entity, or 
community.

    Question #18. Has the Palestinian accession and acceptance of the 
International Criminal Court jurisdiction triggered this prohibition on 
the Economic Support Fund assistance?

    Answer. The administration continually reviews its assistance to 
ensure compliance with U.S. law, including those provisions pertaining 
to assistance to the Palestinian Authority.
    At this stage, the administration does not believe that any of the 
legislative restrictions on Economic Support Fund (ESF) assistance to 
the Palestinian Authority have been triggered. At the same time, in 
light of the latest developments, the administration has indicated that 
it is reviewing our assistance for the Palestinian Authority to ensure 
that it supports our policy.

    Question #19. Has the International Criminal Court Prosecutor's 
opening of a preliminary examination of the situation in the 
Palestinian territories, enabled by the Palestinian ad hoc declaration, 
triggered the prohibition on Economic Support Fund assistance? If the 
prohibition has not been triggered, what steps would the Palestinians 
or the International Criminal Court have to take for the prohibition to 
take effect?

    Answer. The administration strongly disagreed with the decision by 
the ICC Prosecutor to open a preliminary examination of the situation 
in ``Palestine'' and has indicated that it will continue to oppose 
actions against Israel at the ICC as counterproductive to the cause of 
peace.
    At this stage, the administration does not believe that legislative 
restrictions on ESF assistance to the Palestinian Authority have been 
triggered. At the same time, in light of the latest developments, the 
administration has indicated that it is reviewing our assistance for 
the Palestinian Authority to ensure that it supports our policy.
    It is difficult to predict how events may develop in the future and 
an assessment of whether particular restrictions have been triggered 
would need to take into account the specific circumstances as they may 
evolve. If confirmed, I would expect to work with Secretary Kerry and 
other officials at the State Department to monitor the situation 
closely.

    Question #20. What are the defects in Palestinian claims to 
statehood or sovereignty? What steps is the United States taking or 
planning to take to challenge Palestinian accession to the Rome Statute 
and acceptance of ICC jurisdiction?

    Answer. The view of the United States is that the Palestinians have 
not yet established a state and are not eligible to become a party to 
the Rome Statute. We remain committed to achieving a negotiated two-
state solution that would result in two states living side by side in 
peace and security. We continue to believe that the conflict between 
the Israelis and the Palestinians ultimately should be resolved by the 
parties reaching an agreement on final status issues.
    With respect to the ICC, the United States has made clear its 
opposition to Palestinian action in seeking to join the Rome Statute of 
the International Criminal Court. This step is counterproductive, will 
damage the atmosphere with the very people with whom Palestinians 
ultimately need to make peace, and will do nothing to further the 
aspirations of the Palestinian people for a sovereign and independent 
state. Our actions have included formal submission by the United States 
of a diplomatic note to the treaty depositary for the Rome Statute 
setting forth our view that the Palestinians are not eligible to become 
a party to the treaty, and of a notification to the Registry of the 
Court itself to make clear that the Palestinians are ineligible to 
accept the jurisdiction of the Court under Article 12(3) of the Rome 
Statute. The United States issued a public statement strongly 
disagreeing with the decision by the ICC Prosecutor to open a 
preliminary examination of the situation in ``Palestine'' and 
indicating we will continue to oppose actions against Israel at the ICC 
as counterproductive to the cause of peace. The United States continues 
to make our opposition known to the Palestinians and the international 
community.

    Question #21. Do you believe Russia is in ``material breach'' of 
its obligations under the Intermediate Range Nuclear Forces Treaty? 
What are the differences between an activity described as a ``material 
breach'' versus a violation?

    Answer. The international legal doctrine of material breach allows 
one party to terminate a treaty or suspend its operation in whole or in 
part based on inter alia another party's violation of a provision 
essential to the accomplishment of the object and purpose of the 
treaty.
    The administration has made clear its extremely serious concerns 
about Russia's violation of the Intermediate-Range Nuclear Forces (INF) 
Treaty's ban on the possession, production, and flight-testing of 
intermediate range missiles. However, the administration does not 
believe it is in the interest of the United States to suspend the INF 
Treaty at this time. As a result, the administration has not invoked 
the doctrine of material breach. The administration's current efforts 
are focused on convincing Russia to return to compliance and preserving 
the viability of the 
INF Treaty, which the administration believes continues to serve U.S. 
and allied interests.

                               __________



                              NOMINATIONS

                              ----------                              


                        WEDNESDAY, MAY 20, 2015

                                       U.S. Senate,
                            Committee on Foreign Relations,
                                                    Washington, DC.
                              ----------                              

Gregory T. Delawie, of Virginia, to be Ambassador to the 
        Republic of Kosovo
Ian C. Kelly, of Illinois, to be Ambassador to Georgia
Nancy Bikoff Pettit, to be Ambassador to the Republic of Latvia
Julieta Valls Noyes, of Virginia, to be Ambassador to the 
        Republic of Croatia
Azita Raji, of California, to be Ambassador to the Kingdom of 
        Sweden
                              ----------                              

    The committee met, pursuant to notice, at 2:20 p.m., in 
room SD-419, Dirksen Senate Office Building, Hon. Ron Johnson, 
presiding.
    Present: Senators Johnson, Gardner, Shaheen, Kaine, and 
Murphy.

            OPENING STATEMENT OF HON. RON JOHNSON, 
                  U.S. SENATOR FROM WISCONSIN

    Senator Johnson. This hearing is called to order.
    I would like to first recognize--the Ambassador from 
Georgia who is here in the audience today. Welcome.
    I am pleased to be holding this hearing to confirm some 
very qualified individuals who are willing to serve this Nation 
in the capacity of Ambassadors to Kosovo, to Georgia, to 
Latvia, to Sweden, and to Croatia.
    I have been in the Senate now for 4 years, on Senator 
Foreign Relations for 2\1/2\, and I just have to say that I 
have always been very impressed with the quality of career 
Foreign Service individuals and people who serve this Nation in 
the capacity of Ambassadors. From my standpoint, it is such an 
important position, in terms of being able to convey our values 
around the world. I hope you all take that responsibility--I am 
sure you will--very seriously, conveying that America, although 
we are not perfect, has been a phenomenal force for good in the 
world. I certainly always ask our Ambassadors to think of how 
you can utilize this committee, whether it is holding hearings 
or potentially passing resolutions to reinforce the work you 
are doing in those countries that you are representing America 
for. I also point out to our Ambassadors that you are 
representing those countries back to America. It is really a 
two-way street. I certainly appreciate your willingness to 
serve.
    I know Senator Shaheen has a tight schedule, so I will not 
say anything further until I introduce the nominees.
    Senator Shaheen.

           OPENING STATEMENT OF HON. JEANNE SHAHEEN, 
                U.S. SENATOR FROM NEW HAMPSHIRE

    Senator Shaheen. Thank you very much, Mr. Chairman.
    Welcome. I want to congratulate each of you on your 
nominations, and express my appreciation to you for your 
willingness to serve this country and take on these new 
responsibilities at such a critical time.
    I also want to welcome all of your families who are here 
today. And I hope that you will introduce them as you are 
starting your statements.
    You have all been named for ambassadorial posts in 
important countries in strategic areas of Europe. We are 
considering your nominations and our relations with these 
countries against the backdrop of an aggressive Russia in 
Europe's east and growing instability in its south, in the 
Middle East and in North Africa. I look forward to discussing a 
wide range of issues regarding the countries that you are going 
to serve, and other challenges facing Europe today, and hope 
that you will be confirmed to these very important posts.
    Thank you.
    Thank you, Mr. Chairman.
    Senator Johnson. Senator Kaine, would you like to make a 
comment, or----
    Senator Kaine. No, thank you.
    Senator Johnson. Okay.
    With that, I will just introduce you one at a time before 
your testimony. And we will start from my right, going left, 
with Mr. Delawie. Mr. Greg Delawie is currently the Deputy 
Assistant Secretary within the Bureau of Arms Control, 
Verification, and Compliance at the State Department. He is a 
career member of the Senior Foreign Service, and he is the 
nominee for Ambassador to Kosovo.
    Mr. Delawie.

          STATEMENT OF GREGORY T. DELAWIE, NOMINATED 
           TO BE AMBASSADOR TO THE REPUBLIC OF KOSOVO

    Mr. Delawie. Thank you very much, Chairman Johnson, Ranking 
Member Shaheen, Senator Kaine.
    It is an honor and a privilege to appear before you today 
as the President's nominee to be Ambassador to the Republic of 
Kosovo. I deeply appreciate the confidence President Obama and 
Secretary Kerry have placed in me.
    I am accompanied today by my wife, Vonda Delawie, a retired 
Foreign Service officer, and, further back, my daughter, 
Torrence, and my son, Fred, all of whom have shared with me the 
joys and challenges of bouncing from one country to the next. 
For all of us, it has been an honor to work for the American 
people and to represent them to the rest of the world.
    The United States relationship with Europe's youngest 
democracy is based on a shared vision of Kosovo's legitimate 
place in a Europe whole, free, and at peace. Indeed, Kosovo has 
made remarkable progress since declaring independence. It has 
drafted and implemented modern laws, economic growth has been 
steady, and security throughout the country has improved, 
creating an atmosphere that allows the EU-led dialogue between 
Kosovo and Serbia to flourish.
    Despite these significant achievements, Kosovo continues to 
face many obstacles. If confirmed as Ambassador, I will lead a 
whole-of-government U.S. effort to help it surmount the 
remaining challenges to its becoming a fully democratic, 
multiethnic, sovereign nation.
    If confirmed, I will focus on three central and highly 
interdependent areas: strengthening the rule of law, increasing 
regional security, and promoting economic reforms. I would like 
to share what I see as our priorities, beginning with the rule 
of law.
    First, corruption hampers Kosovo's democratic and economic 
development. The Government of Kosovo must develop a 
coordinated approach to addressing it. If confirmed, I will 
intensify interagency support for Kosovo's anticorruption 
efforts and help restore citizens' faith in their government.
    Next, Kosovo must respond appropriately to allegations of 
serious crimes committed between 1998 and 2000. Kosovo must 
uphold its commitments by adopting, soon, the necessary legal 
measures to set up a special court to handle any potential 
indictments stemming from the ongoing investigation into the 
alleged crimes committed during this period. I will, if 
confirmed, encourage the Government of Kosovo to diligently 
support the court's judicial proceedings.
    Third, Kosovo confronts a significant human trafficking 
problem, despite having good antitrafficking and victim-
protection laws. If confirmed, I will work with Kosovo to 
implement these laws and intensify the fight against this 
modern form of slavery.
    In terms of regional security, normalization of the Kosovo-
Serbia relationship is a fundamental requirement for lasting 
stability in the Balkans. We continue to fully support the EU-
led dialogue between Kosovo and Serbia, and full implementation 
of all elements of the April 2013 Agreement on Normalization. 
If confirmed, I will champion minority rights and promote 
integration throughout Kosovo. We must also find durable 
solutions for thousands of displaced persons.
    I applaud Kosovo for its robust efforts to confront the 
threat posed by foreign terrorist fighters heading to Syria and 
Iraq, and Kosovo's participation in the counter-ISIL coalition. 
With U.S. assistance, the Government of Kosovo is improving its 
capacity to prosecute terrorism cases and developing a national 
plan for countering violent extremism. If confirmed, I will 
continue backing this important work.
    Kosovo is in the process of transitioning from the Kosovo 
Security Force to the Kosovo Armed Forces. If confirmed, I will 
ensure that the United States guides this transition in a way 
that increases regional stability, strengthens democratic 
institutions in Kosovo, and positions it to qualify for 
eventual NATO membership.
    Mr. Chairman, if confirmed, encouraging Kosovo's economic 
reform and development will be one of my highest priorities. 
This will be key to reducing high rates of poverty and 
unemployment, to promoting regional ties, and to expanding 
opportunities for U.S. firms. The lack of dependable electrical 
power is widely considered Kosovo's greatest obstacle to 
sustained economic growth. If confirmed, I will work with 
Kosovo to implement its energy strategy, including promoting 
significant growth in renewable energy.
    This is a daunting agenda, but I know from my 30-plus years 
in the Foreign Service that I will not have to pursue it alone. 
I will be able to draw on the experience of the talented team 
of Americans and local staff in Embassy Pristina, as well as on 
partners from multiple agencies in Washington, and on so many 
others who want to see Kosovo succeed. I look forward to 
remaining in close consultation with the legislative branch and 
this committee to advance U.S. interests in the Balkans.
    Mr. Chairman, if confirmed, I will do my utmost to promote 
a democratic Kosovo whose citizens trust its institutions, 
which is at peace with its neighbors, and which is making a 
sustainable contribution to the global economy.
    Thank you very much for your attention. I hope you will 
place your trust in me and confirm me as Ambassador to Kosovo. 
I am happy to take any questions.
    [The prepared statement of Mr. Delawie follows:]

                 Prepared Statement of Greg T. Delawie

    Chairman Johnson, Ranking Member Shaheen, and members of the 
committee, it is an honor and a privilege to appear before you today as 
the President's nominee to be Ambassador to the Republic of Kosovo. I 
deeply appreciate the confidence that President Obama and Secretary 
Kerry have placed in me. I hope the committee and the Senate will share 
that confidence and confirm me. I am accompanied today by my wife, 
Vonda Delawie, a retired Foreign Service officer, my daughter, 
Torrence, and my son, Fred, all of whom have shared with me the joys 
and challenges of a lifetime bouncing from one country to the next. 
Wherever we have served, we have always remembered what an honor it is 
to work for the American people and to represent them to the rest of 
the world.
    Our relationship with Europe's youngest democracy is based on a 
shared vision of Kosovo's legitimate place in a Europe whole, free, and 
at peace. The government and people of Kosovo deeply respect the United 
States, and are grateful for our role in ending the ethnic cleansing of 
the late 1990s. Over the past 16 years, with our strong support, Kosovo 
has made remarkable progress. Concrete examples of that progress 
include Kosovo's 2008 Declaration of Independence and the end of 
international supervision in 2012.
    A democratic, fully sovereign, and multiethnic Kosovo must become 
an integral part of the international community. The United States has 
worked and continues to work closely with Kosovo toward that end. 
Although Kosovo faces enormous challenges in the interconnected areas 
of rule of law, regional security, and economic development, it has 
made progress. I would like to highlight some successes:

   With U.S. and international support, Kosovo has drafted and 
        implemented modern laws to bring Kosovo's criminal legislation 
        in line with international standards, to establish the rules of 
        criminal procedure mandatory for court proceedings, and to 
        reform the judicial system. The European Rule of Law Mission, 
        EULEX, is building capacity in the judicial system, with the 
        vital help of U.S. police, prosecutors, and judges.
   The NATO Kosovo Force, or KFOR, makes a multinational 
        contribution to regional security. KFOR is uniquely trusted by 
        Albanians and Serbs alike and its presence creates an 
        atmosphere that allows the EU-led Dialogue between Kosovo and 
        Serbia to flourish. The United States provides some 700 troops 
        to KFOR.
   With U.S. guidance, Kosovo has moved up 42 places on the 
        World Bank's ``Ease of Doing Business'' ranking, from 117th in 
        2011 to 75th in 2014. We have helped Kosovo privatize its 
        national airport management and energy distribution companies. 
        U.S. technical assistance helped Kosovo conclude a landmark 
        $460 million public-private partnership deal for the Brezovica 
        ski resort complex.Our USAID economic programs in the last 5 
        years alone have generated 17,500 new jobs, $330 million in 
        increased sales, and $37.6 million in new revenues across 
        multiple sectors.

    As impressive as these recent achievements are, Kosovo continues to 
face many obstacles. If confirmed as Ambassador, I will devote my time 
and energy to leading a whole-of-government U.S. effort to help Kosovo 
surmount these obstacles. We will focus on measurable improvement in 
three central and highly interdependent areas [the three ``R''s]: 
strengthening the rule of law, increasing regional security, and 
promoting economic reforms to reduce poverty, unemployment, and energy 
insecurity. I'd like to share just a bit about what I see as our 
priorities, beginning with the rule of law.
Rule of law
    Corruption hampers Kosovo's democratic and economic development. It 
deters investment, spurs emigration, and weakens confidence in public 
institutions. This in turn can create fertile ground for the growth of 
violent extremism. The Government of Kosovo must develop a more 
coordinated approach to addressing corruption, engaging all government 
agencies in the effort. If confirmed, I will intensify interagency 
support for Kosovo's efforts to combat corruption and restore citizens' 
faith in their government.
    Kosovo must respond appropriately to allegations of serious crimes 
committed between 1998 and 2000. Under the auspices of the EU-
established Special Investigative Task Force (SITF), an American 
prosecutor found evidence that indictable offenses were committed by a 
small number of former Kosovo Liberation Army (KLA) senior leaders. 
Kosovo must resolve these serious allegations if it is to close this 
chapter of its history and move forward with democratic development and 
Euro-Atlantic integration. The government is currently adopting the 
necessary constitutional amendments, legislation, and agreements to 
establish a Special Court to adjudicate SITF cases in line with 
international standards. While I hope that these measures will soon be 
in place, I will, if confirmed, encourage the Government of Kosovo to 
maintain a high level of support and cooperation throughout the 
judicial proceedings.
    Kosovo confronts a significant human trafficking problem. It has 
antitrafficking and victim-protection laws, as well as a shelter for 
victims, but does not yet meet minimum standards for enforcement of 
antitrafficking laws or victim protection. To improve enforcement, the 
U.S. Embassy has provided antitrafficking training to Kosovo Government 
officials, and successfully encouraged the foreign ministry to include 
training on human trafficking as part of the standard preparation for 
all of Kosovo's diplomatic personnel. Kosovo's fight against 
trafficking is also supported more generally by U.S.-organized training 
for law enforcement, prosecutors, and judges in Kosovo. If confirmed, I 
will continue the Embassy's work with Kosovo to implement these laws 
and intensify the fight against this modern form of slavery.
Regional security
    Normalization of the Kosovo-Serbia relationship is a fundamental 
requirement for enduring regional security and is effectively a 
precondition for Kosovo to be able to thrive over the long term. We 
continue to support the EU-facilitated Kosovo-Serbia High-Level 
Dialogue and full implementation of all elements of the April 2013 
agreement on normalization, which have been a landmark joint 
achievement of U.S. and European Union diplomacy in the Balkans. This 
Dialogue success reflects great credit on the political leaders of 
Kosovo and Serbia alike for making tough compromises for the good of 
their two countries. Dismantling parallel structures and integrating 
the predominantly Kosovo Serb northern municipalities into Kosovo's 
legal and institutional framework are key to full normalization of 
relations. Kosovo has made significant progress: voters of all 
ethnicities participated in recent municipal and parliamentary 
elections; municipal governments in northern Kosovo are now elected and 
constituted under Kosovo law; the main Serb political group, Srpska 
List, is part of the governing coalition. Outside the Dialogue context, 
bilateral contacts increasingly take place at all levels, from 
interministerial dialogue to joint training for customs officers. Some 
aspects of normalization remain difficult to achieve, such as the 
planned creation of an Association of Serb Majority Municipalities.
    If confirmed, I will champion minority rights and promote 
integration throughout Kosovo, including more proportional minority 
representation in the national and municipal civil services. Kosovo 
must find durable solutions for the thousands of vulnerable persons 
displaced from Kosovo, many of whom now live in Serbia. U.S. programs 
assist some of those displaced in Serbia as well as returnees to 
Kosovo, but additional political and programmatic efforts are needed. 
Kosovo must also do more to protect the rights of Kosovo's other 
minorities, including the Roma, Ashkali, and Balkan Egyptian 
population, and promote their societal inclusion.
    I applaud Kosovo for its robust efforts to confront the threat 
posed by foreign terrorist fighters heading to Syria and Iraq, and its 
participation in the Counter-ISIL Coalition. Kosovo passed legislation 
making it illegal for Kosovo citizens to join foreign terrorist 
organizations. Since November 2013, Kosovo authorities have arrested 
over 80 suspects for participation in, or recruitment for, terrorist 
groups in Iraq and Syria. With U.S. assistance, the Government of 
Kosovo is improving its capacity to prosecute terrorism cases. The U.S. 
is also supporting Kosovo's effort to develop a ``whole of government'' 
approach to countering violent extremism. If confirmed, I will continue 
our backing for this important work.
    As recommended in its U.S.-facilitated Strategic Security Sector 
Review, Kosovo is in the process of transitioning from the Kosovo 
Security Force to the Kosovo Armed Forces, with the stated mission of 
protecting the nation's territorial integrity, providing military 
support to civil authorities in disaster situations, and participating 
in international peacekeeping operations. The KAF is expected to 
develop capabilities in line with EU and NATO standards. If confirmed, 
I will ensure that the United States continues to guide and support 
this transition in a manner that is consistent with increasing regional 
stability, strengthens democratic institutions in Kosovo, and positions 
Kosovo to qualify for eventual NATO membership.
Energy security and economic development
    Mr. Chairman, I can guarantee that one of my highest priorities, if 
confirmed, will be to continue to press for the reforms needed to 
develop Kosovo's economy. This is key to reducing high rates of poverty 
and unemployment, to promoting regional ties, and to expanding 
opportunities for U.S. exporters and investors. The government's reform 
agenda includes strengthening the legal environment necessary to 
attract and retain foreign investors, who are already drawn by Kosovo's 
relatively young population, low labor costs, and abundant natural 
resources. Anticorruption efforts are also vitally important.
    The lack of dependable electrical power is widely considered 
Kosovo's greatest obstacle to achieving sustained economic growth. The 
government has made it a priority to modernize and improve the energy 
sector through a comprehensive energy development and security plan. If 
confirmed, I will work with Kosovo to implement its energy strategy, 
help meet its commitment to join the EU's common energy market, and to 
have a substantial share of its energy come from renewable energy 
sources by 2020.
Conclusion
    This is a daunting agenda. But I know from my 30-plus years in the 
Foreign Service that I will not have to pursue it alone. I will be able 
to draw on the experience of the talented team of Americans and locally 
employed staff at Embassy Pristina, the experienced partners from 
multiple agencies in Washington, support from the legislative branch, 
and the contributions of private Americans and citizens of so many 
other nations who also want to see Kosovo succeed.
    Mr. Chairman, for the past seven decades, the United States has 
been committed to building a Europe whole, free, and at peace. The work 
is not complete, but we know that we can achieve success because we 
have already accomplished so much. The history of the last 25 years has 
demonstrated how important it is for the United States to be involved 
in the Balkans. If confirmed, I will do my utmost to promote our mutual 
goal: a democratic Kosovo whose citizens trust its institutions, which 
is at peace with its neighbors, and which is making a sustainable 
contribution to the global economy.
    Thank you very much for your attention. I hope you will place your 
trust in me and confirm me as Ambassador to the Republic of Kosovo. I 
am happy to take any questions.

    Senator Johnson. Thank you, Mr. Delawie.
    Our next nominee is Ambassador Ian Kelly. He is the nominee 
for the Ambassador to Georgia. Ambassador Ian Kelly is a career 
member of the Foreign Service and currently serves as the 
Department of State's Diplomat in Residence at the University 
of Illinois--Chicago. Prior to that, he served as U.S. 
Ambassador to the Organization for Security and Cooperation in 
Europe.
    Mr. Kelly.

           STATEMENT OF HON. IAN C. KELLY, NOMINATED 
                  TO BE AMBASSADOR TO GEORGIA

    Ambassador Kelly. Thank you, Mr. Chairman, Senator Shaheen, 
Senator Kaine. I am deeply honored to appear before you as 
President Obama's nominee to be Ambassador to Georgia. It is a 
particular privilege for me to have a second opportunity to be 
considered by this committee and serve the American people in 
this way.
    If confirmed, I pledge to devote all of my efforts to 
advancing U.S. interests and promoting the security of the 
American people.
    For all 30 years of my government service, my wife, 
Francesca, has been by my side, and I am pleased that she is 
behind me right now.
    Nearly 40 years ago, after spending several months studying 
in the U.S.S.R., I visited Tbilisi and was immediately struck 
by the vitality and independent spirit of the Georgian people. 
A few years later, the Georgian people were in the forefront of 
the movement to free the captive nations of the Soviet Union. 
We supported their desire for independence then, and we support 
it now.
    The United States stands firm in its commitment to 
Georgia's sovereignty, territorial integrity, and independence. 
We condemn the ongoing occupation of Georgia's Abkhazia and 
South Ossetia regions by Russian forces. Furthermore, Russia's 
so-called ``treaties'' with the de facto authorities in 
Abkhazia and South Ossetia have absolutely no legitimacy.
    In Georgia, an important principle is at stake: the right 
of all sovereign nations to choose their own alliances and 
associations. The United States and our allies support 
Georgia's Euro-Atlantic aspirations, including NATO membership 
and EU integration. No third party has the right to veto those 
aspirations.
    If confirmed, I look forward to working with the Georgian 
Government and my Embassy colleagues in realizing these 
aspirations. I will also urge all Georgians who believe in 
their country's Euro-Atlantic goals to unite in supporting them 
and move their country forward.
    On the road to Euro-Atlantic integration, Georgia has made 
substantial progress toward becoming a fully democratic state. 
Its 2012 and 2013 elections resulted in the first 
constitutional changes of government in post-Soviet Georgia. 
While progress has been real and substantial, more work needs 
to be done for Georgia to realize its goal of an environment 
fully conducive to political pluralism. We will work with all 
parties in Georgia to help ensure the next parliamentary 
elections are the freest and fairest in Georgia's history. The 
United States has been a partner in this effort, with a robust 
assistance program to help Georgia strengthen accountable 
government and consolidate its democratic institutions.
    If Georgia's quest to integrate with the West is to 
succeed, it is critical that we improve the climate for trade 
and investment. This is an area where the government and 
opposition should be able to come together. Georgia needs to 
take advantage of the great opportunity that its association 
agreement with the European Union represents, particularly 
increased trade between Georgia and Europe through the 
agreement's deep and comprehensive free trade area.
    The United States appreciates Georgia's growing role as a 
regional business, trade, and logistics hub, and its 
contributions to the revitalization of East-West trade routes 
along the New Silk Road connecting European and Asian markets. 
If confirmed, I will support Georgia's focus on the future, 
particularly economic development, to create jobs and 
contribute to the long-term stability of the country and the 
region.
    Mr. Chairman, there is a lot of work to do. And if the 
Senate confirms my nomination, I look forward to rolling up my 
sleeves and getting down to it, advancing the mutual interests 
of the American and Georgian peoples.
    Thank you. And I welcome your questions.
    [The prepared statement of Ambassador Kelly follows:]

                   Prepared Statement of Ian C. Kelly

    Mr. Chairman and distinguished members of the committee, I am 
deeply honored to appear before you as President Obama's nominee to 
serve as Ambassador to Georgia. It is a particular privilege for me to 
have a second opportunity to be considered by this committee, and serve 
the American people in this way. If confirmed, I pledge to devote all 
my efforts to advancing U.S. interests and promoting the security of 
the American people. For all 30 years of my government service, my wife 
Francesca has been by my side, and I am pleased to introduce her to you 
today.
    Nearly 40 years ago, after spending several months studying in the 
U.S.S.R., I visited Tbilisi, and was immediately struck by the vitality 
and independent spirit of the Georgian people. A few years later, the 
Georgian people were in the forefront of the movement to free the 
captive nations of the Soviet Union. We supported their desire for 
independence then, and we continue to support it today.
    The United States stands firm in its commitment to Georgia's 
sovereignty, territorial integrity, and independence. We condemn the 
ongoing occupation of Georgia's Abkhazia and South Ossetia regions by 
Russian forces. Furthermore, Russia's so-called ``treaties'' of 
alliance with the de facto authorities Abkhazia and South Ossetia have 
absolutely no legitimacy.
    An important principle is at stake here--the right of all sovereign 
nations to choose their own alliances and associations. The United 
States and our allies support Georgia's Euro-Atlantic aspirations, 
including NATO membership and EU integration. No third party has the 
right to veto those aspirations. If confirmed, I look forward to 
working with the Georgian Government and my Embassy colleagues in 
realizing these aspirations. I will also urge all Georgians who believe 
in their country's Euro-Atlantic goals to unite in supporting them and 
moving their country forward.
    On its road toward Euro-Atlantic integration, Georgia has made 
substantial progress toward becoming a fully democratic state. Its 2012 
and 2013 elections resulted in the first constitutional changes of 
government in post-Soviet Georgia. While progress has been real and 
substantial, more work needs to be done for Georgia to realize its goal 
of an environment fully conducive to political pluralism. We will work 
with all parties in Georgia to help ensure the next parliamentary 
elections are the freest and fairest in Georgia's history. The U.S. has 
been a partner in this effort, with a robust assistance program to help 
Georgia strengthen accountable government, and consolidate its 
democratic institutions.
    If Georgia's quest to integrate with the West is to succeed, it is 
critical that it improve the climate for trade and investment. This is 
an area where the government and the opposition should be able to come 
together. Georgia needs to take advantage of the great opportunity that 
its Association Agreement with the European Union represents--
particularly increased trade between Georgia and Europe through the 
Agreement's Deep and Comprehensive Free Trade Area. The United States 
appreciates Georgia's growing role as a regional business, trade and 
logistics hub, and its contributions to the revitalization of East-West 
trade routes along the New Silk Road, connecting European and Asian 
markets. If confirmed, I will support Georgia's focus on the future, 
particularly economic development, to create jobs and contribute to the 
long term stability of the country and the region.
    Mr. Chairman, there is a lot of work to do, and if the Senate 
confirms my nomination, I look forward to rolling up my sleeves and 
getting down to it, advancing the mutual interests of the American and 
Georgian peoples. Thank you, and I welcome your questions.

    Senator Johnson. Thank you, Ambassador Kelly.
    Our next nominee is Mrs. Nancy Pettit. Am I pronouncing 
that right? Good. I am generally bad about that 30 percent of 
the time. [Laughter.]
    Mrs. Pettit is our nominee for Ambassador to Latvia. She is 
currently the Director of the Western European Affairs Office 
within the State Department and is a career Foreign Service 
officer. Mrs. Pettit's past positions include the Director of 
Policy Planning and Coordination of the State Department's 
Bureau of International Narcotics and Law Enforcement and 
positions at posts in Kiev, Moscow, and Vienna.
    Mrs. Pettit.

       STATEMENT OF NANCY BIKOFF PETTIT, NOMINATED TO BE 
              AMBASSADOR TO THE REPUBLIC OF LATVIA

    Ms. Pettit. Mr. Chairman and distinguished members of the 
committee, I am honored to appear before you today as President 
Obama's nominee to be the next U.S. Ambassador to the Republic 
of Latvia.
    I am deeply grateful to President Obama and Secretary Kerry 
for the confidence and trust they have placed in me. If 
confirmed by the Senate, I pledge to devote my time, energy, 
and expertise to advancing America's interests in Latvia and 
strengthening relations between our two countries. I commit 
myself to working closely with the committee, your staffs, and 
your congressional colleagues to build on our shared interest 
in a strong and vibrant U.S.-Latvian partnership.
    I would like to thank my family, friends, and colleagues 
for providing encouragement and support throughout my career. 
In particular, special thanks to my husband, Jim, the current 
Ambassador to Moldova; daughters, Sarah and Liz Pettit; and 
son-in-law, Josh Katzenstein, who are watching this online. I 
would like to introduce my sisters, Ellen Phipps and Barbara 
Bikoff, and brother, Russ Bikoff, who are here with me today. 
Thank you for coming.
    I have spent the bulk of my 33-year career as a public 
servant working on issues related to Europe and Transatlantic 
relations. From my early days as a desk officer in the Office 
of Soviet Union Affairs to my most recent position as Director 
of the Office of Western European Affairs, I have devoted my 
professional life to advancing our shared vision of a Europe 
that is whole, free, and at peace. I believe these experiences 
have prepared me well to lead our mission in Riga, and, if 
confirmed, continue our work with the Republic of Latvia on a 
forward-looking, ambitious global agenda.
    The United States and Latvia share a long history of 
friendship and cooperation. From the darkest days of the Soviet 
occupation through the end of the cold war, the United States 
commitment to the Latvian people never wavered. Following the 
restoration of Latvia's independence in 1991, the country 
embarked on an ambitious path toward Euro-Atlantic integration, 
joining NATO and the EU in 2004, adopting the Euro in 2014, and 
setting a powerful example for other countries aspiring to be 
free.
    As allies, United States and Latvian troops have fought 
together and died together in Iraq and Afghanistan. Through our 
cooperation in Afghanistan, Latvia has become one of only seven 
countries certified as Joint Terminal Attack Controllers who 
provide essential targeting expertise for NATO combat missions. 
With U.S. support, Latvia has also increased its development 
assistance to countries around the world. Whether it is 
contributing humanitarian assistance to fight the spread of 
ebola or supporting international efforts to combat ISIL, 
Latvia has always stepped up to the plate.
    Without a doubt, Russia's continued aggression in Ukraine 
has challenged the vision of a Europe that is whole, free, and 
at peace, threatening the security of Latvia and all of our 
regional allies. This is why the United States has deployed 
company-sized units to Poland and the three Baltic States since 
April 2014 under Operation Atlantic Resolve. Through President 
Obama's $1 billion European Reassurance Initiative, we will 
maintain this rotational presence for as long as necessary, and 
fund military infrastructure improvement projects. These 
efforts embody the United States commitment to Latvia's 
security under NATO's article 5.
    Meanwhile, Latvia has enacted legislation to meet its NATO 
defense spending commitment of 2 percent of GDP by 2020, and is 
using its role as the current EU-presidency country to maintain 
international pressure on Russia while also offering Moscow a 
diplomatic off-ramp, should it choose peace over further 
escalation. Mr. Chairman, if confirmed by the Senate, I will 
continue to grow our partnership with Latvia to the benefit of 
our shared security and prosperity.
    Latvia has made advancing the Transatlantic Trade and 
Investment Partnership, TTIP, a top priority. If confirmed, I 
will work with my Latvian counterparts to build Latvian support 
for a comprehensive TTIP agreement that boosts economic growth, 
creates jobs, and sets a new standard for trade that reflects 
our shared values.
    While Latvia has made great strides over the past 20 years 
implementing democratic reforms and rule of law, I believe more 
work needs to be done in the areas of combating corruption, 
addressing Holocaust-era legacies, such as Jewish communal 
property restitution, and taking advantage of Latvia's rich 
cultural diversity.
    Almost 25 years ago, Latvia emerged from captivity seeking 
the democracy, prosperity, and security that we in the 
transatlantic community have enjoyed for nearly seven decades. 
Through sheer determination, sacrifice, and an enduring 
commitment to the principles of freedom, the Latvian people 
persevered and succeeded in building a vibrant, flourishing 
democracy. If confirmed, I promise to further enrich the bonds 
between our countries and continue confronting global 
challenges together as close partners and NATO allies.
    Thank you again for the privilege of appearing before you 
today, and I look forward to answering your questions.
    [The prepared statement of Ms. Pettit follows:]

               Prepared Statement of Nancy Bikoff Pettit

    Mr. Chairman and distinguished members of the committee, I am 
honored to appear before you today as President Obama's nominee to be 
the next U.S. Ambassador to the Republic of Latvia. I am deeply 
grateful to President Obama and Secretary Kerry for the confidence and 
trust they have placed in me in this nomination. If confirmed by the 
Senate, I pledge to devote my time, energy, and expertise to advancing 
America's interests in Latvia and strengthening the relations between 
our two countries. I also commit myself to working closely with the 
committee, your staffs, and your congressional colleagues to build on 
our shared interest in a strong and vibrant U.S.-Latvian partnership.
    I have spent the bulk of my 33-year career as a public servant 
working on issues related to Europe and trans-Atlantic relations. From 
my early days as a desk officer in the Office of Soviet Union Affairs 
to my most recent position as Director of the Office of Western 
European Affairs, I have devoted a considerable amount of my life to 
advancing our shared vision of a Europe whole, free, and at peace. I 
believe these experiences have prepared me well to lead our mission in 
Riga and--if confirmed--continue our work with the Republic of Latvia 
on a forward-looking and ambitious global agenda.
    The United States and Latvia share a long history of unbroken 
friendship and cooperation. From the darkest days of the Soviet 
occupation through the end of the cold war, the United States 
commitment to the Latvian people never wavered. Following the 
restoration of Latvia's independence in 1991, Latvia embarked on an 
ambitious path toward euro-Atlantic integration: joining NATO and the 
EU in 2004; adopting the euro in 2014; and setting a powerful example 
for other countries aspiring to be free.
    Today, Latvia is one of our most reliable and valued partners. As 
allies, U.S. and Latvian troops have fought together and died together 
in Iraq and Afghanistan. Through our cooperation in Afghanistan, Latvia 
has become one of only seven countries that are certified as Joint 
Terminal Attack Controllers (JTAC), providing essential targeting 
expertise for NATO combat missions. With U.S. support, Latvia has also 
increased its development assistance to countries around the world. For 
example, through the State Department's Emerging Donors Challenge Fund, 
the United States and Latvia are cofinancing a project in Uzbekistan to 
enhance export control and border security capabilities. Whether it is 
contributing humanitarian assistance to fight the spread of Ebola or 
supporting international efforts to combat ISIL, Latvia has always 
stepped up to the plate. In short, Latvia is a global partner of first 
resort.
    Without a doubt, Russia's continued aggression in Ukraine has 
challenged the vision I referenced earlier of a Europe whole, free, and 
at peace, threatening the security of Latvia and all of our allies in 
the region. This is why the United States has deployed company-sized 
units to Poland and the three Baltic States since April 2014 under 
Operation Atlantic Resolve. Through President Obama's $1 billion 
European Reassurance Initiative (ERI), we will sustain this persistent, 
rotational presence for as long as necessary.ERI will also fund 
military infrastructure improvement projects, including at Latvia's 
Lielvarde airbase and Adazi training grounds. These efforts embody the 
United States commitment to Latvia's security under NATO's Article 5. 
Meanwhile, Latvia has enacted legislation to meet its NATO defense 
spending commitment of 2 percent of GDP by 2020 and is using its role 
as the current rotating EU Presidency country to maintain international 
pressure on Russia, while also offering Moscow a diplomatic off-ramp 
should it choose peace over further escalation.
    Mr. Chairman, if confirmed by the Senate, I will continue to grow 
our partnership with Latvia to the benefit of our shared security and 
prosperity. Latvia has made advancing the Transatlantic Trade and 
Investment Partnership (TTIP) a top priority of its EU Presidency. If 
confirmed, I will work hand in hand with my Latvian counterparts to 
build Latvian support for a comprehensive TTIP agreement that boosts 
economic growth, creates jobs, and sets the global gold standard for 
trade that reflects our shared values. In 2014, bilateral trade in 
goods between the United States and Latvia totaled $702 million. While 
significant, I think there is a tremendous potential to further 
cultivate our economic ties. If confirmed, I will work to increase our 
bilateral trade and investment. While Latvia has made great strides 
over the past 20 years implementing democratic reforms and rule of law, 
I believe more work needs to be done in the areas of combating 
corruption, addressing Holocaust-era legacies such as Jewish communal 
property restitution, and taking advantage of Latvia's rich cultural 
diversity.
    Almost 25 years ago, Latvia reemerged from captivity seeking the 
democracy, prosperity, and security that we in the transatlantic 
community have enjoyed for almost seven decades. Through sheer 
determination, sacrifice, and an enduring commitment to the principles 
of freedom, the Latvian people persevered and succeeded in building a 
vibrant, flourishing democracy. If confirmed, I promise to further 
enrich the bonds between our countries and to continue confronting 
global challenges together, as close partners and NATO allies. Thank 
you again for the privilege of appearing before you today, and I look 
forward to answering your questions.

    Senator Johnson. Thank you, Mrs. Pettit.
    Our next nominee is Ms. Azita Raji. She is our nominee for 
Ambassador to Sweden. Ms. Raji has served as a member of the 
President's Commission on White House Fellowships since 2013. 
She is also trustee of Barnard College and a member of the 
advisory board of the Social Enterprise Program at Columbia 
Business School. As a former investment banker, Ms. Raji 
specialized in European emerging markets.
    Ms. Raji.

           STATEMENT OF AZITA RAJI, NOMINATED TO BE 
              AMBASSADOR TO THE KINGDOM OF SWEDEN

    Ms. Raji. Thank you, Mr. Chairman, Senator Shaheen, and 
Senator Kaine.
    I would like to begin by recognizing my parents for their 
wisdom, strength, and encouragement--which are fundamental to 
my being here today. I am deeply grateful to my husband, Gary 
Syman, who is here. And four out of our five daughters are 
here, and I am grateful to all of them. Our son-in-law, and 
especially our grandson, Theo--7-year-old Theo is here. And I 
have to admit that I am a little bit nervous today, because I 
really have not had a chance to prepare for his questions, 
which will undoubtedly come afterward. [Laughter.]
    Ms. Raji. I am here as a woman whose family endured the 
life-altering upheaval of the Iranian Revolution and found new 
hope and new life in the United States of America. Throughout 
my life, while working or studying in countries as different as 
Iran, Switzerland, Japan, and the United States, I arrived at 
the realization that I had been, in principle and sensibility, 
quintessentially American all along. So, I have never taken for 
granted the freedom to speak my mind, the protection of the 
rule of law, or our belief in unity within diversity, which is 
expressed in our country's de facto motto, E Pluribus Unum. 
That is the belief that has made me effective in what I have 
chosen to do in business, in philanthropy, in the political 
arena, and even in my own family life.
    So, it is specially meaningful for me to find myself here 
before this distinguished committee, trusted by President Obama 
and Secretary Kerry to represent the United States of America, 
and to be asked to do so in Sweden, a valued partner and close 
friend of the United States, but also a country where respect 
for the rule of law, individual freedoms, human dignity, and 
gender equality are hallmarks of national identity and defining 
pillars of government policy.
    So, if confirmed, I pledge and look forward to working 
closely with you to enhance our cooperation with Sweden by 
focusing on four priorities:
    First, Sweden is an engaged and effective partner of the 
United States and NATO in promoting global peace and security. 
Our close cooperation in Ukraine as it fights against Russian 
aggression and seeks to implement ambitious reforms is vital 
and greatly appreciated. Elsewhere, whether in Africa, 
Afghanistan, Iraq, Syria, and Kosovo, or in fighting ISIL, 
corruption, and global terrorism, Sweden is a valued and 
reliable partner. So, if confirmed, I will work to further 
strengthen our bilateral partnership with Sweden in security, 
as well as supporting their cooperation with NATO.
    Second, as a strong and long-standing economic partner of 
the United States--Sweden is the 11th-largest direct foreign 
investor and one of the fastest growing and largest investors 
per capita in the United States. Our economic partnership with 
Sweden supports over 190,000 American jobs. And, if confirmed, 
I will continue our focus on promoting bilateral trade and 
investment, specially focusing on emerging industries like 
clean energy, biotech, and information technologies.
    Third, we have a very strong cooperation on environmental 
issues with Sweden, including our cooperation in the 
increasingly important Arctic region. If confirmed, I will 
continue our focus on addressing environmental challenges with 
Sweden, stewardship of the Arctic region, and scientific 
research. I also look forward to engaging with our Swedish 
partners both in the private sector and the government, to 
explore opportunities to leverage Sweden's energy leadership in 
the EU and its global leadership in environmental and clean 
energy technologies to advance our shared interest in an energy 
secure Europe.
    Fourth, our friendship with Sweden is anchored in the close 
affinity between our peoples and the shared commitment that we 
have to democratic ideals and institutions around the world. 
That is manifested through our development cooperation, where 
Sweden is a strong and global leader, and we advance our 
interests in democracy promotion, human rights, gender 
equality, governance, and transparency around the world. There 
are--today there are 4 million Americans in the United States 
who claim a Swedish descent. They contribute to our culture and 
society and have been part of our economic development and 
success from the beginning by building successful companies, 
such as Nordstrom, Walgreens, and Greyhound. If confirmed, I 
will dedicate myself to advance this enduring friendship by 
taking a multistakeholder approach to developing partnerships 
outside of the government between our peoples and institutions 
and leveraging technology and public-private partnerships to 
reach new audiences.
    Finally, we have an excellent, strong, dedicated, and 
talented Embassy team in Stockholm. And, if confirmed, I look 
forward to working with them and facilitating their continued 
success and being their biggest advocate. Their safety, as well 
as that of all Americans, will be my first priority, and most 
important priority.
    Thank you very much. I look forward to your questions.
    [The prepared statement of Ms. Raji follows:]

                    Prepared Statement of Azita Raji

    Thank you, Mr. Chairman, Ranking Member Shaheen, and distinguished 
members of the committee.
    I would like to begin by recognizing my parents for their wisdom, 
strength, and encouragement, which are fundamental to my being here 
today. I am grateful to my husband, Gary Syman, for his unwavering 
support, and to our five daughters and seven grandchildren, for the joy 
and inspiration they bring me.
    I appear before you as a woman whose family endured the life-
altering upheaval of the Iranian Revolution, and found new hope and new 
life in the United States of America. Throughout my life, while living, 
studying or working in countries as different as Iran, Switzerland, 
Japan, Italy, France, and the United States, I arrived at the 
realization that I had been, in principle and sensibility, 
quintessentially American all along. And so, I have never taken for 
granted the freedom to speak my mind, the protection of the rule of 
law, and the opportunities to benefit from the similarities and 
differences that create the transformative mosaic that is America. Our 
country's de facto motto, E Pluribus Unum, speaks to our belief in 
unity within diversity, a belief that has made me effective in what I 
have chosen to do in business, in philanthropy, in the political arena, 
and even in my own family life. And it also speaks to a world that in 
its differing views has never been in greater need of commonality, 
kinship, and partnership.
    Which is why it is an especially meaningful honor for me to find 
myself here, before this distinguished committee, and to have the trust 
of President Obama and Secretary Kerry to represent and serve the 
United States of America, and to be asked to do so in Sweden, an 
important partner and close friend of the United States and a country 
where respect for the rule of law, individual freedoms, human dignity 
and gender equality are hallmarks of national identity and defining 
pillars of government policy.
    If confirmed, I pledge to serve our country to the best of my 
ability and to work closely with you to deepen the friendship and 
expand the cooperation between the United States and Sweden. I will 
focus on four priorities.
    First, security challenges. Sweden is an engaged and effective 
strategic partner of the United States and NATO in promoting global 
peace and security. Our close cooperation with Sweden in support of 
Ukraine, as it fights against Russian aggression and seeks to implement 
ambitious reforms, is vital and greatly appreciated. Elsewhere, whether 
in Afghanistan (where Sweden made significant contributions to the ISAF 
mission, and currently provides assistance to Resolute Support Mission 
and support to Afghan democracy), or Africa (where Sweden is one of the 
largest contributors to Power Africa and to the global fight against 
Ebola), or Syria, Iraq, and Kosovo, or in fighting ISIL, global 
terrorism and corruption, Sweden is valued and respected as a reliable 
partner in advancing peace. If confirmed, I will seek to further 
strengthen our bilateral cooperation in addressing regional and global 
security challenges, and to support Sweden's partnership with NATO.
    Second, economic prosperity. As a strong and long-standing economic 
and trading partner since 1783, Sweden is the 11th-largest direct 
investor and one of the fastest growing and largest investors per 
capita in the United States. Our economic partnership supports over 
190,000 American jobs across 50 States. If confirmed, I will continue 
our focus on promoting bilateral trade and investment opportunities, 
particularly in emerging industries, such as information technology, 
biotech, and clean energy.
    Today our economic focus must not just be bilateral, but also 
multilateral. The Transatlantic Trade and Investment Partnership is an 
important building block of the wider trade policy agenda between the 
EU and the United States and will be an important focus of our work in 
the coming months. Sweden is a strong supporter of TTIP and a logical 
partner in this effort, having relied on free trade to become one of 
the world's most globalized, competitive, and innovative modern 
industrial economies. If confirmed, I will encourage Sweden to 
highlight and leverage its economic success in creating prosperity 
through trade to promote our shared objective of a comprehensive TTIP 
agreement.
    Third, environmental challenges. The United States and Sweden have 
an active partnership on environmental and climate change issues, 
including our close cooperation in the increasingly important Arctic 
region. Sweden chaired the Arctic Council from 2011 to 2013, and its 
accomplishments included a historic marine oil pollution preparedness 
and response agreement. The United States assumed chairmanship of the 
Arctic Council in April 2015. If confirmed, I will prioritize our 
continued bilateral cooperation on environmental and climate change 
issues, stewardship of the Arctic region, and scientific research. As a 
global leader in environmental sustainability and clean energy 
technologies, Sweden derives more than half of its energy from 
renewable sources, making it less dependent on energy imports than most 
EU countries. If confirmed, I will engage with our partners in Swedish 
Government and private sector to explore innovative ways to leverage 
Sweden's energy leadership in the EU to advance our shared priorities 
in addressing climate change and European energy security.
    Fourth, shared values. Our growing friendship with Sweden remains 
anchored in the genuine affinity between our peoples and our strong 
commitment to democratic values and institutions, a commitment 
expressed in our global partnership to protect and advance human rights 
and civil society. It is a friendship based on a shared heritage that 
dates back to 1638, when the first generation of Swedish immigrants 
arrived on the shores of what is now the State of Delaware. Today over 
4 million Americans claim Swedish descent. They continue to enrich our 
culture and society and have been part of our economic success from the 
beginning, by building such successful companies as Walgreens, 
Greyhound, and Nordstrom. If confirmed, I will dedicate myself to 
deepen this enduring friendship, by encouraging understanding of our 
similarities and respectful debating of our differences, and by taking 
a multistakeholder approach to building innovative partnerships outside 
the government between our peoples and institutions and leveraging 
technology and public-private partnerships to connect with new 
audiences.
    Finally, if confirmed, I look forward to meeting the talented and 
dedicated professionals of our Embassy in Stockholm. I will support 
their continued success and be their biggest advocate, as we work side 
by side to advance our vision of a deeper friendship and stronger 
partnership between the United States and Sweden. The safety and 
security of our team, and that of all Americans in Sweden, will always 
remain my top priority.
    Thank you very much for your consideration. I look forward to your 
questions.

    Senator Johnson. Thank you, Ms. Raji.
    Now, our next nominee is Ms. Julieta Noyes. She is our 
nominee to become Ambassador to Croatia. Ms. Noyes currently 
serves as Deputy Assistant Secretary within the Bureau of 
European and Eurasian Affairs at the State Department, and is a 
career member of the Foreign Service. Her past positions 
include Deputy Chief of Mission at the U.S. Embassy to the Holy 
See and Director of the Office of Multilateral and Global 
Affairs at the State Department's Bureau of Democracy, Human 
Rights, and Labor.
    Ms. Noyes.

          STATEMENT OF JULIETA VALLS NOYES, NOMINATED 
          TO BE AMBASSADOR TO THE REPUBLIC OF CROATIA

    Ms. Noyes. Mr. Chairman, Senator Shaheen, Senator Kaine, it 
is a privilege to appear before you today as President Obama's 
nominee to be Ambassador to the Republic of Croatia.
    I am honored by the confidence placed in me by the 
President and by Secretary Kerry. If confirmed, I look forward 
to working with this committee and with the Congress to advance 
United States-Croatian relations.
    I am a first-generation American, the daughter of Cuban 
refugees who had to come to this country to build a new life. 
And I am profoundly grateful for the opportunity to repay that 
debt with service to our great Nation.
    It is a personal pleasure for me to be here with my 
husband, Nick, a recently retired Foreign Service officer, and 
our children, Alexandra, Nicholas, and Matthew. With 30 years 
as a Foreign Service family, we have many happy memories of 
times spent together overseas and here at home.
    For the last 2 years, I have managed U.S. relations with 
the European Union and worked on trade, energy, security, and 
other issues with the EU. I have also overseen the work of U.S. 
Embassies in 15 Western European countries, managing a broad 
range of political, economic, security, and consular issues, 
and doing broad outreach. My work with nine NATO countries on 
security issues and defense sales has provided valuable lessons 
that I would apply, if confirmed, as the Ambassador in Croatia.
    As Deputy Chief of Mission to the Holy See, I learned how 
to engage the Catholic leadership, which is important in 
Croatia. And in all my assignments, I have worked hard to 
develop and empower my teams to foster high performance and 
high morale. I would do the same in Zagreb.
    Mr. Chairman, our bilateral relationship with Croatia is 
strong and productive. Just last week, Assistant Secretary 
Victoria Nuland met with Foreign Minister Vesna Pusic to 
discuss how our partnership can advance our many common 
interests. In April, Embassy Zagreb and private-sector partners 
hosted the fifth Brown Forum in Croatia, a regional conference 
convened to focus on how to spur entrepreneurship and increase 
trade and investment between our countries and with the region.
    Croatia has come a long way since its hard-won 
independence, becoming a NATO member in 2009 and the European 
Union's 28th and newest member in 2013. The citizens of Croatia 
deserve warm congratulations for all that they have achieved.
    And Croatia has generously shared the lessons that it has 
learned assisting its western Balkan partners and neighbors in 
their aspirations for Euro-Atlantic integration. We encourage 
the Government of Croatia to press forward and, in so doing, 
help address the remaining bilateral and regional legacies of 
the Balkans conflict.
    Croatia is an active and committed EU member. A Croatian 
commissioner leads the EU's work on international cooperation 
and development. Croatian members of the European Parliament 
serve on the critical budget, economic, foreign affairs, and 
other committees. Croatia's leaders have endorsed a U.S./EU 
Transatlantic Trade and Investment Partnership.
    As a reliable NATO ally, Croatia makes valued contributions 
to global security. We appreciate its commitment, first, to the 
international Security Assistance Force and now the Resolute 
Support Mission in Afghanistan, as well as to the Kosovo Force, 
where Croatia provides valuable helicopter lift support. 
Croatia is a member of the global coalition to fight ISIL, and 
it was among the first countries to send observers into Crimea, 
and continues to provide monitors in eastern Ukraine for the 
OSCE mission. Brave Croatian men and women are serving in 11 
peacekeeping missions around the world.
    Croatia now enjoys a mature democratic society, yet there 
is more to be done. It continues to be challenged by sluggish 
growth and far too high unemployment. The Croatian Government 
has recognized the urgent need for reforms to welcome business 
investment, eradicate excessive redtape, and increase 
transparency and predictability for businesses.
    If confirmed, I will seek to further solidify our 
partnership with Croatia, building on the exemplary work of our 
outgoing Ambassador and my good friend Ken Merten and our 
terrific country team in Zagreb.
    As Ambassador, I will promote several interconnected 
priorities in Croatia: fostering economic growth and 
prosperity, helping Croatia realize its potential to become a 
regional energy hub, strengthening the capabilities of a 
willing security partner, and advancing regional stability. If 
confirmed, I will encourage Croatia's contributions to U.S.-EU 
relations in pivotal areas, such as transatlantic trade, energy 
security, and collaboration in the digital sphere. I will also 
actively uphold our strategic alliance in NATO, the Resolute 
Support Mission in Afghanistan, the Counter-ISIL Coalition, and 
more.
    Mr. Chairman, Senator Shaheen, Senator Kaine, thank you for 
this opportunity to appear before you. I would welcome any 
questions.
    [The prepared statement of Ms. Noyes follows:]

               Prepared Statement of Julieta Valls Noyes

    Mr. Chairman and members of the committee, it is a privilege to 
appear before you today as President Obama's nominee to serve as the 
United States Ambassador to the Republic of Croatia. I am honored by 
the confidence placed in me by the President and Secretary Kerry. If 
confirmed, I look forward to working with this committee and the 
Congress in advancing U.S. interests in Croatia.
    I am a first generation American, the daughter of Cuban refugees 
who built a new home in the United States, and I am profoundly grateful 
for the opportunity to repay that debt with service to our great 
country. It is a personal pleasure to be accompanied today by my 
husband, Nick, a recently retired Foreign Service officer, and our 
children, Alexandra, Nicholas, and Matthew. As a Foreign Service family 
of 30 years we treasure many happy memories from our time living in 
Italy, Panama, Spain, Guatemala, and Mexico, as well as here at home.
    For the last 2 years, I have managed U.S. relations with the 
European Union and have worked on trade, energy, security, and other 
issues in the EU. I also have overseen the work of 12 U.S. embassies 
and 19 consulates, covering 15 Western European countries, managing a 
broad range of political, economic, security, and consular issues, and 
carrying out outreach to publics and governments. My work with nine 
NATO members on security issues, defense sales, and participation in 
the Pentagon's review of force realignment in Europe has provided me 
useful lessons for directing the mission in Croatia. As Deputy Chief of 
Mission at our Embassy to the Holy See, I learned how to engage the 
Catholic leadership, which is important in Croatia. In all my 
assignments, I have worked hard to develop and empower my teams, and to 
foster high performance and strong morale; I would do the same in 
Zagreb.
    Our bilateral relationship with Croatia is strong and productive. 
Just last week, Assistant Secretary Victoria Nuland met with Foreign 
Minister Vesna Pusic to discuss how our partnership can advance our 
many common interests. In April, the United States Embassy and private 
sector partners hosted the fifth Brown Forum in Croatia, a regional 
conference convened to focus on how to spur entrepreneurship and 
increase trade and investment between the United States, Croatia, and 
the region.
    Croatia has come a long way since its hard-won independence, 
becoming a NATO member in 2009 and the European Union's 28th and newest 
member in 2013. The citizens of Croatia deserve warm congratulations 
for all they have accomplished. And Croatia has generously shared the 
lessons it has learned, assisting its western Balkan neighbors in their 
aspirations for Euro-Atlantic integration. The United States supports 
the strides Croatia has made toward nurturing regional cooperation. We 
encourage the Croatian Government to continue to press forward and, in 
so doing, help address the remaining bilateral and regional legacies of 
the Balkans conflict.
    Croatia is an active and committed EU member. A Croatian 
Commissioner leads the EU's important work on international cooperation 
and development. Croatian members of the European Parliament 
participate on the critical Budget, Economic, Foreign Affairs and other 
committees. Croatia's leaders have endorsed a U.S.-EU Transatlantic 
Trade and Investment Partnership, or TTIP.
    As a reliable NATO ally, Croatia makes valued contributions to 
global security. We appreciate its commitment to the former 
International Security Assistance Force (ISAF) and now in the Resolute 
Support Mission in Afghanistan, and in the Kosovo Force (KFOR), where 
Croatia provides vital helicopter lift support. Croatia is a member of 
the Global Coalition to Counter ISIL. It was among the first countries 
to send OSCE observers into Crimea, and continues to provide monitors 
for eastern Ukraine. Brave Croatian men and women are participating in 
11 peacekeeping missions around the world.
    Croatia now enjoys a mature democratic society, yet there is more 
to be done. It continues to be challenged by sluggish growth and far-
too-high unemployment. The Croatian Government has recognized the 
urgent need for reforms to welcome business investment, eradicate 
excessive redtape, and increase transparency and predictability for 
businesses. The United States will support Croatian reforms that lead 
to sustainable economic growth and prosperity. We want to strengthen 
the foundation for mutual economic expansion and trade relations.
    If confirmed, I will seek to further solidify our partnership with 
Croatia, building on the exemplary work of our outgoing Ambassador and 
my good friend, Ken Merten, and our country team in Zagreb. As 
Ambassador, I will promote several interconnected priorities in 
Croatia: championing economic growth and prosperity, helping Croatia 
realize its potential to become a regional energy hub, strengthening 
the capabilities of a willing security partner, and fostering regional 
stability. My experience working directly with the European Union and 
its western European members has afforded me insights into our highest 
objectives with Europe. If confirmed, I will foster Croatia's 
contributions to U.S.-EU relations in pivotal areas such as the 
transatlantic trade deal, energy security, and collaboration between 
our countries in the digital sphere. I will also actively uphold our 
strategic alliance in NATO, the Resolute Support Mission in 
Afghanistan, the Counter-ISIL Coalition, the State Partnership Program 
with the Minnesota National Guard, and more.
    Mr. Chairman and members of the committee, thank you for this 
opportunity to appear before you. I welcome any questions you may have.

    Senator Johnson. Thank you, Ms. Noyes.
    Again, thank you all for your testimony and your 
willingness to serve our Nation. I would also like to join our 
ranking member, Senator Shaheen, in welcoming all of the family 
members here in the committee room, as well as those watching 
online.
    So much of a country's success, whether it is for peace and 
stability or otherwise, really relies on economic prosperity. 
What I would like to do is go right down the panel, starting 
with you, Mr. Delawie. I would like each nominee to talk about 
the economic opportunities in the countries that you are going 
to represent the United States to, as well as the economic 
challenges. What is the greatest opportunity for cooperation 
between your country and the United States?
    Mr. Delawie.
    Mr. Delawie. Thank you very much, Mr. Chairman.
    Right now, the economic situation in Kosovo is improving. 
It is one of the poorest countries in Europe. Gross domestic 
product is about $7 billion a year. It has significant 
challenges, as I outlined in my testimony, but it also has 
significant opportunities. It has a very young population. It 
has significant natural resources that remain largely untapped. 
And it has a very, very talented population, which is 
demonstrated by the fact that the biggest export of Kosovo is 
its talented population that is elsewhere in--mostly in Western 
Europe, and that is sending billions of dollars in remittances 
home every year.
    The opportunities for cooperation are, at present, limited 
by corruption, which I addressed in my testimony. And that is 
something that we have to work with the Kosovar Government to 
address. And I will do so, certainly vigorously, if confirmed.
    Senator Johnson. Thank you, Mr. Delawie.
    Ambassador Kelly.
    Ambassador Kelly. Thank you, Mr. Chairman, for that 
question.
    Our bilateral assistance program is very much focused on 
trade and investment and enhancing opportunities for American 
businesses to invest in Georgia. And we very much see a growing 
economy as very much a part of our foreign policy priority 
promoting stability and security in the region.
    I think, in terms of the greatest opportunities for 
Georgia, I think it is--I mentioned, already, its recent 
agreement with the EU, to increase trade with the EU. And I 
think that is a tremendous opportunity for Georgia. And also, I 
think the--Georgia's strategic position as--between Asia and 
Europe--and I think that it can really gain a lot from being 
this East-West corridor for energy, in particular, but also for 
transporting goods from Central Asia to Europe. And, if 
confirmed, I look forward to working with you and with the 
Congress in identifying more opportunities.
    Thank you.
    Senator Johnson. Thank you, Ambassador Kelly.
    Mrs. Pettit.
    Ms. Pettit. Thank you, Senator, for that question.
    Deepening deepening trade and investment with Latvia is one 
of the highest priorities in our relationship. Last year, our 
total bilateral trade investment was about $700 million. If I 
am confirmed, I will work to expand that.
    In terms of opportunities, I think the Northern 
Distribution Network, where Riga served as a hub for materiel 
going to Afghanistan, could possibly be developed into a new 
economic opportunity for Latvia. That is an area I would 
explore with them, if confirmed.
    Thank you.
    Senator Johnson. Thank you, Mrs. Pettit.
    Ms. Raji.
    Ms. Raji. Thank you.
    In many ways, we already have a very strong and long-
lasting trade and investment partnership with Sweden that goes 
back to 1783. We have a robust--as I mentioned earlier, they 
are a strong foreign investor in the United States, and we have 
a--strong trade relationships.
    Bilaterally, the opportunities lie in looking at industries 
where there is potential. For example, in the smart-grid 
industry in the United States, we are one of the leaders--
export leaders--I think, the third-leading export leader of 
transmission and distribution equipment, electrical equipment. 
It is an area that was identified by the National Export 
Initiative as an area of high growth and potential for the 
United States to grow. Because of the interest, 
internationally, in investing in dated electricity 
infrastructure, that is an area that we can explore with Sweden 
that they possibly could be interested, as well as energy 
efficiency in the built environment. So, that is just to pick 
one sector.
    Sweden presents a successful example in building prosperity 
through trade. It has managed to transform its once 
agricultural society over the last 150 years into one of the 
world's most prosperous, competitive, and innovative modern 
industrials economies, largely relying on trade, where it is 
now over 50 percent of its GDP.
    So, we will explore the bilateral opportunities. But, I 
think there is also a multilateral opportunity. Because of 
Sweden's strong example in building prosperity through trade, I 
will look for opportunities to explore with our Swedish 
partners to see how we can highlight and leverage that strong 
example in Europe in reaching our shared objective of a 
Transatlantic and Pacific partnership.
    And finally, I want to just say that my background in 
business and finance, especially in emerging markets, have made 
me realize the important connection between economic prosperity 
and political stability and civil society. So, I share 
Secretary Kerry's view that foreign policy is--economic policy 
is foreign policy. And if confirmed, I will use my skills in 
business and finance towards economic statecraft to open new 
markets for the United States, encourage foreign investment in 
the United States, and increase exports.
    Senator Johnson. Thank you, Ms. Raji.
    Ms. Noyes.
    Ms. Noyes. Thank you, Senator
    Croatia has suffered from recession for the last 6 years, 
and is only barely now coming to a position of positive growth. 
Its unemployment rate ranges from about 18\1/2\ percent for the 
general population to about 48 percent for youth. Its deficit 
is 5.7 percent of GDP, and its debt-to-GDP ratio is about 85 
percent. Clearly it has a lot of economic issues that it needs 
to address in addition to its difficult investment climate.
    But, Croatia also has some real advantages. It is 
breathtakingly beautiful country, very attractive to tourists. 
If confirmed, I hope that you will come to visit. [Laughter.]
    Ms. Noyes. But, it is also--it has an enormously motivated, 
educated population. Its recent admission into the European 
Union has given it additional resources and expertise that it 
can draw upon. And Croatia also has energy resources of its 
own. It is these energy resources that the Croatian government 
is trying to expand on, in creating and making itself into a 
regional energy hub.
    If confirmed, I would seek to work with the Croatian 
Government to tackle some of these very difficult economic 
issues, working with our government here, but also with the 
European Union and with Brussels and with other countries in 
the neighborhood, because a number of these are issues that 
need to be tackled regionally.
    Thank you.
    Senator Johnson. Thank you, Ms. Noyes.
    Senator Shaheen.
    Senator Shaheen. Thank you, Mr. Chairman.
    Mr. Delawie, I had the opportunity to visit Kosovo in 
February of 2010 on their Independence Day--their second 
Independence Day. And I remember the people on the streets 
waving flags from Kosovo and from America, thanking Americans. 
It was very moving to see that.
    I was very encouraged when I heard that there had been an 
agreement reached between Kosovo and Serbia to lessen tensions 
between the two countries. Can you give us an update on how the 
relationship with Serbia is going and what additional progress 
has been made since that accord was signed?
    Mr. Delawie. Thank you very much, Senator Shaheen. And, if 
confirmed, I certainly hope you will come back and see what has 
changed since February of 2010.
    The relationship between Kosovo and Serbia is going pretty 
well. We are firm supporters of the EU-sponsored dialogue. 
There was an agreement in 2013 that lead--is on a path toward 
normalization of relations between the two countries. There has 
been a lot of progress in the last couple of years. The police 
are integrated now. The Serbs and Albanians are integrated in 
the same police department. Judicial structures are merged. The 
Serbian parallel courts in the northern chunk of the country 
are no longer taking new cases. There are liaison offices 
between the two countries. And the EU has been very 
enthusiastic in helping to promote this, using the idea of a 
potential path for both countries ultimately into EU 
integration.
    The new EU High Rep. Mogherini was in Kosovo, actually, in 
March. She helped initiate some additional progress on judicial 
issues. So, progress is going pretty well, and I think we can 
all be happy of the role that the United States has played in 
promoting that progress.
    Thank you.
    Senator Shaheen. I agree, I think we should be very proud 
of that.
    Can you also talk about the Serbian church? Because, as I 
remember, one of the concerns was the fact that many of the 
churches--Serbian churches were a concern, in terms of 
potential protection in the future.
    Mr. Delawie. That is certainly one of the issues the 
Embassy in Pristina pays close attention to. They are talking 
about it. Protecting the Serbian orthodox heritage in Kosovo is 
certainly one of the key elements of this normalization 
dialogue, something our Embassy pays close attention to. And, 
as far as I know, that has been going relatively well. And I 
believe the Embassy has even put some money from the 
Ambassador's fund into remodeling and protecting some of the 
Serbian orthodox churches in Kosovo.
    Senator Shaheen. Thank you. That is very encouraging.
    Ms. Noyes, can you--you mentioned the importance of Croatia 
in the region, in the Balkans, in terms of its future economic 
prosperity. Can you talk about what you, as Ambassador, would 
be able to do to encourage economic prosperity with the region, 
and also what the United States is doing to promote economic 
prosperity?
    Ms. Noyes. Thank you, Senator.
    Yes. One of the things that Croatia is seeking to do is to 
become a regional energy hub. It has resources of its own. It 
provides about 60 percent of its own gas for domestic use, but 
it also has a great geographic location and some infrastructure 
that already exists that would allow it, if it could build an 
LNG import terminal--and they are looking at building one on 
the Krk Island--that would allow it to be a hub for the 
exportation--or the importation of LNG, and then the 
exportation to other countries in the region. This would not 
only help with regional needs, but it would also reduce 
reliance on Russian gas.
    And Croatia has also been very engaged and active within 
the EU and in NATO in advancing the Euro-Atlantic integration 
of its partners, and seeking to have greater relations between 
the EU and other countries in the Balkans.
    So, if confirmed, I would certainly seek to promote both of 
those objectives--the LNG terminal, the creation of the 
regional energy hub--but also to support Croatia's advocacy and 
its emphasis on making all of the countries of the Balkans 
oriented toward the West, both in terms of their democratic 
behavior, and their economic growth and their free-market 
orientation.
    Senator Shaheen. And to what extent has Croatia been 
affected, or has it been affected, by the financial 
difficulties in Greece?
    Ms. Noyes. Well, Senator, Croatia and Greece are the only 
two countries in the EU that have suffered from a recession for 
the last 6 years. In each case--and I know this a bit on Greece 
because of my current job, working with the European Union--
there are factors in each country that are specific to the 
country, but there is no doubt that both countries were also 
affected by the greater economic downturn in Europe. As we see 
now with dropping energy prices--frankly, the drop in the value 
of the Euro--we are starting to see growth turning around in 
Europe. And, in fact, we are now seeing Croatia coming out of 
the recession and doing better.
    So, they are not necessarily linked to each other, but they 
both have been affected by greater trends, as well as by 
macroeconomic issues that they need to tackle independently, 
both in Zagreb and in Athens.
    Senator Shaheen. Thank you.
    Mr. Kelly, one of the issues that I have had the 
opportunity to raise with Georgian officials when they have 
been here is concern about the perception that arrests of some 
former political leaders raise questions about the rule of law 
and the judicial system in Georgia. And to what extent do you 
think it is--what can we do, in the United States, to encourage 
Georgia to continue to move forward with democracy and to 
address the potential to see former political opponents as 
subject to arrest, as opposed to what they are, which is former 
political opponents?
    Ambassador Kelly. Well, thank you very much for that 
question.
    Our top foreign policy priority for Georgia is helping it 
attain its aspirations, join Euro-Atlantic institutions. And, 
of course, we would not want to see anything degrade that 
trajectory toward Euro-Atlantic integration. And in our 
bilateral contacts, I know that Ambassador Norland has had many 
good consultations with the Georgian Government, and we have 
stressed the importance of not even having the perception of 
any kind of political use of any kind of judicial levers.
    Having said that, we also have a very strong cooperation 
with Georgia to ensure that the judicial process, in all cases, 
is transparent and accountable. And I think Georgia has made 
great strides in ensuring the independence of the judiciary.
    But, you have put your finger on one of the issues, that, 
if you do confirm me, that I am going to keep a very close eye 
on. So, thank you very much for raising that.
    Senator Shaheen. Well, thank you. And my time is up, but 
let me just say how much I appreciate the close relationship 
that America and Georgia have had, and their contributions to 
our efforts in Afghanistan have been significant. So, I think 
they have made tremendous progress, and want to see them 
continue to succeed.
    Ambassador Kelly. I second that. Thank you.
    Senator Johnson. Senator Kaine.
    Senator Kaine. Thank you, Mr. Chairman.
    Ms. Noyes, you talked a little bit about the security 
cooperation between the U.S. and Croatia. And I not--have not 
been to Croatia, so, when my staff and I were digging--it is 
pretty impressive. Croatia participates in U.N. peacekeeping 
operations in the Golan Heights, Cyprus, Sudan, Liberia, 
Lebanon, Western Sahara, and the Kashmir, supports NATO-led 
Kosovo Force, and also the ISAF in Afghanistan. Kind of feel 
funny saying that and saying, Are there things we can do to 
even strengthen the relationship? I am very impressed with the 
commitment of Croatia to peacekeeping through U.N. and other 
multinational organizations. But, are there remaining 
opportunities for us to deepen that tie?
    Ms. Noyes. Thank you, Senator.
    Yes, Croatia definitely punches above its weight on the 
security front. It participates in 11 peacekeeping operations. 
It is been with us in Afghanistan since 2003. It provided 
ammunition and weapons to both Iraqi forces and the peshmerga. 
It assisted with the removal of Syrian chemical weapons. And it 
is absolutely a critical support to KFOR through its provision 
of lift support.
    That said, there is always more that can be done. And, if 
confirmed, I would look forward to working further with the 
forces in Croatia. One of the biggest priorities that we have 
there is to help Croatia modernize its equipment. It still has 
too much reliance on Soviet-era equipment, and still relies on 
Russia for spare parts and, in some cases, servicing of that 
equipment. So, one of my priorities, if confirmed, would be to 
help Croatia modernize its forces and its equipment to make 
them more interoperable with NATO forces, and to continue to 
support the efforts of this very willing ally.
    Senator Kaine. Great.
    Ms. Raji, I look forward to working with you on the 
economic issues. Virginia has a huge amount of direct 
investment from Swedish companies. The only vehicle 
manufacturing plant in Virginia is a Volvo truck plant in 
Dublin, VA.
    But, I want to ask you about something else. You talked a 
little bit about the Arctic Council. I--this is something that 
I was not too aware of before I came to the Senate, but the 
United States has just taken on the chairmanship of the Arctic 
Council for the coming year. Talk a little bit about 
initiatives that you think the United States and Sweden can do 
together as the Arctic really changes in its strategic 
importance.
    Ms. Raji. Senator, thank you for that question.
    The Arctic region, in fact, is an area of increasing 
importance. With the melting of the Arctic ice, there are new 
opportunities and challenges in shipping, commerce, trade, 
environmental protection, fishing, hunting, and the livelihood 
and the living conditions of the 4 million indigenous Arctic 
people that live there.
    Correctly stated, we just took over the chairmanship of the 
Arctic Council. We have a very strong partnership with Sweden 
in the Arctic region and other environmental issues that I 
mentioned. But, focusing on the Arctic Council, we have a 
scientific cooperation with Sweden. We were cofounders of the 
Clean Air and--Climate and Clean Air Coalition, which focuses 
on reducing so-called short-lived climate pollutants, or black 
carbon, which is a concern in the Arctic. And Sweden has 
particular expertise and knowledge in that area. We cooperate 
with them on that, and on that Council. Scientific research is 
another area.
    And, broadly speaking, I would say that we share the values 
that the Arctic Council is the preeminent intergovernmental 
forum for cooperation. The Arctic has always been a region of 
no conflict and cooperation on scientific research and 
environmental issues. And all of the members are interested in 
maintaining that practical cooperation in our mutual goals.
    Senator Kaine. Great. Thank you so much for that.
    Ms. Pettit, I am interested in Latvia, with all of the 
challenges we deal with on this committee with Russian 
influence and their sort of more bellicose recent posture. 
Latvia--I guess, 38 percent of Latvians claim Russian as their 
mother tongue, and there are strong Russian cultural ties. What 
is the view of the, kind of, Latvian population about Russian 
expansionism in the Baltic region and elsewhere in Europe?
    Ms. Pettit. Thank you, Senator, for that question.
    As you said, there are a large number of Russian speakers 
in Latvia. However, those Russian speakers are very supportive 
of Latvia's participation in Euro-Atlantic institutions. For 
example, the political party that represents these Russian 
speakers believes that Latvia should be a member of the EU. And 
there are many advantages to Latvia and all Latvians being 
members of the EU.
    I think one of the areas of concern is Russian propaganda. 
The Latvian Government is addressing this issue. They are 
addressing it by increasing the number of Russian-language TV 
programs. They have a new television studio for their Russian-
language programs. The United States is working closely with 
Latvia on this. VOA and RFE/RL now have a nightly Russian 
language program that is available online for Russian speakers 
who are looking for objective, truth-based media. And I--if 
confirmed--will continue to work with Latvia to address these 
issues.
    I think the message we have to share is--as Azita mentioned 
and Julieta mentioned--is our strength through diversity. And 
we have a great message to share with Latvia.
    Thank you.
    Senator Kaine. Thank you.
    Mr. Kelly, talk a little bit about the delicate situation 
that Georgia's in with Russia in the--a posture that they are 
in, contrary to international law, on the two areas of Georgia 
that you described. Georgia still has been a participant with 
NATO in missions. I think there is one underway, or recently, 
Noble Partner, on the borders of Russia, 300 American soldiers 
accompanied by 14 Bradley tanks transported across the Black 
Sea from Romania. NATO is scheduled to open a training center 
in Georgia later this year. How does Georgia manage this with 
the challenge with Russia now? And what can we do to shore them 
up?
    Ambassador Kelly. Thank you very much, Mr. Senator.
    I think you actually identified one of the most tangible 
examples of the way we are shoring up their aspirations to join 
NATO, and that is the training exercises going on right now, 
Noble Partner, where we have hundreds of American troops from 
173rd Brigade who are helping the Georgians become 
interoperable with the NATO Response Force. And that is a--it 
is a real token of our support for this bedrock principle that 
every nation has the right to choose its own alliances. And 
Georgia has overwhelmingly chosen to join NATO.
    So, much of our bilateral assistance, of course, is 
designed to help Georgia become interoperable with NATO. You 
also, I think, very sensitively pointed out the very difficult 
position they are in, with 20 percent of their territory under 
occupation and with the Russian troops there, digging in, 
showing no signs of living up to the terms of the cease-fire 
agreement in 2008 which called for Russian troops to return to 
their previous positions. They are actually hardening the 
border, putting up fences and surveillance cameras. They are 
denying monitors from--the international community, like the EU 
monitoring mission, from coming in, which was also agreed to in 
the 2008 cease-fire.
    And I think, in general, we have to keep saying, over and 
over again, that we support their aspirations to integrate with 
Europe--to join NATO, to integrate with the EU. And, of course, 
we need to have tangible support, as well. And we are doing it. 
The Congress has made Georgia one of the largest recipients of 
foreign military financing. It is also one of the largest 
recipients of IMET, the International Military Education and 
Training. So, we really are, I think, you know, walking the 
walk as well as talking the talk. And, if confirmed, I will, as 
I say, continue to make this our priority, to support their 
Euro-Atlantic aspirations.
    Senator Kaine. Thank you.
    Mr. Chair, could I ask Mr. Delawie just one brief question? 
Thank you. I am over my time, but----
    Mr. Delawie, I am curious about Kosovo, the number of 
foreign fighters that go from Kosovo into the ISIL theater in 
Syria and Iraq--per capita, among the highest in the world. I 
am puzzled by that. Could you educate the committee about why 
that is? What is it about Kosovo--it is geographic or sort of 
ideological positioning that leads that to be the case?
    Mr. Delawie. I do not think there is one easy answer, 
Senator Kaine. They are--Kosovo is the poorest country in 
Europe. Unemployment, around 40 percent; among youth, it is 
probably in the neighborhood of 60 percent. So, there is this 
economic factor. There are some--some people are going for 
ideological reasons. Some people are going for excitement and 
adventure, unfortunately. So, there are a variety of challenges 
that Kosovo faces.
    Fortunately, Kosovo passed a law, just 2 months ago, in 
March, that would criminalize many of the aspects of going to 
Syria and Iraq to join with ISIL. And we are working with the 
Embassy in Pristina very hard with the justice authorities, the 
police authorities, to train prosecutors, and to help the 
government get a grip on the problem.
    Senator Kaine. Thank you.
    Thank you, Mr. Chair.
    Appreciate all of your testimony.
    Senator Johnson. Senator Murphy.
    Senator Murphy. Thank you very much, Mr. Chairman. Good to 
see you in the Chair's spot. I enjoyed our 2 years sitting at 
the head of this subcommittee.
    And we have got a really fantastic group of nominees here 
today, all going to very interesting countries, many of them in 
transition. So, a few questions.
    Maybe, Mr. Kelly, I will start with you to extend this 
conversation about Georgia's future. So, I am a believer that 
we are starting to compromise NATO's open-door policy without a 
real, tangible plan for enlargement that includes Georgia, 
understanding that it is a very difficult nut to crack with 
respect to the occupied and contested territories. But, that 
does not seem impossible. And so, I want to ask you, sort of, 
What are the preconditions from our standpoint right now, from 
the U.S.'s standpoint, as to what has to happen in order for 
Georgia to get NATO membership? And do you foresee a 
circumstance in which you could give the portion of Georgia 
that is not contested, is not occupied, membership, or give a 
type of membership with reservations concerning the extent of 
the occupied and contested territories?
    Ambassador Kelly. Thank you. Thank you very much.
    Of course, you know NATO is a consensus organization with 
all 28 members. I think, you know, the United States has a good 
story to tell, in terms of our support for Georgia's desire to 
join NATO. And I think that we really are doing a lot to help 
them prepare for membership. And so, I think a lot of what we 
have to do, and what we have to continue to do, because I think 
the Embassy is already doing it, is highlighting what the 
United States is doing, in terms of training Georgians, of 
integrating them into NATO missions. But, you have--you know, 
you have put your finger on the really hard part of it, of 
course, which is the fact that Russia occupies 20 percent of 
Georgia and has compromised its territorial integrity. And so, 
I think that we just have to stay focused on the overall goal 
of supporting Georgia in becoming more interoperable with NATO, 
in reforming its defense institutions--and we have multiple 
programs through State and through the Defense Department to do 
that--and also be very steadfast in rejecting Russia's illegal 
occupation of 20 percent of Georgia's territory.
    Senator Murphy. But, does that not effectively result in 
Russia having veto power over Georgia's accession to NATO? If 
we do not hold out the possibility that there is a pathway for 
them to join while the occupation continues, do we not 
essentially put the decision in Russia's hands?
    Ambassador Kelly. I do not think that Russia or any other 
country has a veto on a country's desire to join NATO. We do 
have good--I think, a good dialogue through NATO with Georgia, 
through the NATO-Georgia Commission. I think that the path is 
clear to any aspirant to join NATO. Obviously, the occupation 
of South Ossetia and Abkhazia is a very difficult issue. But, 
this overarching principle, that all countries should be able 
to choose their own alliances and associations, is something 
that has to be really defended, and the United States has to do 
everything it can--and, of course, is doing everything it can--
to help Georgia realize its aspirations.
    Senator Murphy. I think we have been halfhearted in our 
attempts to lead the way to Georgia's membership in NATO. I 
hope that we change at least the volume of our tune.
    Mr. Delawie, you got big shoes to fill. Ambassador Jacobson 
has done really important work for us at a very critical time. 
I visited with her in Pristina last fall at a moment in which I 
think she showed immense discretion in forcing the different 
parties surrounding the government to make their own decisions 
about a coalition moving forward, resisting the temptation that 
sometimes comes with that position to get too involved.
    I also visited the American University there, and one of 
the answers to the question about the roots of extremism is a 
real sense of hopelessness amongst young people in Kosovo, you 
know, large numbers of youth unemployed and very little access 
to higher education. The American University there is a unique 
asset that provides a pathway into the middle class for young 
people in Kosovo. I just hope that you will support their 
mission, support the work that the new government is trying to 
do to expand opportunities for higher education. It is really 
a--it is really stunning, the lack of opportunities to get 
advanced degrees in Kosovo. AUK is, right now, their best bet 
to do that, but, hopefully, that experience can be modeled, 
moving forward.
    Mr. Delawie. Thank you very much, Senator.
    I know Ambassador Jacobson has done an incredible job. And 
I am looking forward to doing my best to fill her shoes. But, 
it will be hard.
    Fortunately, USAID has devoted a fair amount of resources 
to supporting the access to higher education for Kosovar 
citizens. You are right, there is a long way to go. And I 
certainly agree with you about this--the hopelessness. We 
have--we saw another example of that, not just in the ISIL 
direction, but also, in the winter, there were a fair number of 
Kosovo citizens who were attempting to emigrate, basically, to 
Germany. Another symptom of that. So----
    Senator Murphy. And I think we need to help the Kosovar 
Government understand that this is not just about law 
enforcement. They have really done some impressive things when 
it is come to standing up law enforcement's capabilities. But, 
they have, I think, got to understand the holistic strategy.
    Just one question, Ms. Raji. Good to see you. I do not know 
if this question has been asked, but--Sweden stepped up their 
participation with NATO. They are obviously--have agreements 
with NATO through memorandums of understanding for training and 
military exercises. Important, given the forward positioning of 
Russia in and around the region, to have that dialogue 
continue. I assume that they are going to continue to be an 
active participant with NATO in whatever joint exercises are 
appropriate, and that we will encourage them to increase their 
level of military integration so that we can send a coordinated 
message, even with non-NATO partners, to Russia that, if they 
are going to continue to run submarines and jet planes over our 
friends' heads and to our friends' shores, that there is going 
to be a coordinated response.
    Ms. Raji. Great to see you, Senator Murphy, and thank you 
for that question.
    As you know, Sweden is not an ally of NATO, but it is one 
of the--only five recently designated Enhanced Opportunities 
Partners. It has made significant contributions to the missions 
of NATO, and, in fact, other multilateral institutions, such as 
the EU and the U.N. in peacekeeping and military exercises and 
so forth.
    With regard to NATO, Sweden currently has troops under 
allied command in Kosovo and Afghanistan, and played a 
significant role in protecting the no-fly zone in Libya in 
2011. And it continues to increase, as you said, some of its 
involvement with NATO in the exercises. For example, it joined 
the NATO Response Force in 2013, which will enhance joint 
capabilities. And it did sign an MOU for a Host Nation Support 
Agreement in 2014, which will regulate exercises and military 
transits on its soil, that has not been ratified, however.
    We very much have a strong partnership with Sweden on NATO 
missions. And, if confirmed, I will continue their cooperation 
and partnership with NATO.
    Senator Murphy. Great.
    If I--just one quick question I forgot to ask Mr. Delawie. 
The Riga summit starts tomorrow. There was an expectation that 
there might be an extension of visa liberalization for Georgia 
coming. It does not look like that may happen. I hope I--I ask 
you whether it is going to be part of your mission to continue 
to work with Georgia and with the Europeans to try to--I am 
sorry--Mr. Kelly--I am sorry--to Mr. Kelly--although you can 
respond to that question, as well, if you would like----
    [Laughter.]
    Senator Murphy [continuing]. Mr. Delawie. Be happy to know 
what the Kosovar's Ambassador's position is on Georgia visa 
liberalization. [Laughter.]
    Mr. Kelly, what is the role that we can play in trying to 
help them come to a better place on the question of visa 
liberalization, vis-a-vis the European Union, post-Riga?
    Ambassador Kelly. Yes, thank you very much.
    Yes, as I said before, the--our--really, our top foreign 
policy priority is to keep Georgia on a good trajectory. And I 
think that it will be important that the Euro-Atlantic 
community sends signals that Georgia is progressing on this 
path. And I think this will help address some of the concerns 
you mentioned before, obviously, about NATO's open door, too.
    But, we--you know, a lot of our assistance program has been 
sort of reoriented to help Georgia implement the terms of the 
Association Agreement. And that is because it is really in our 
U.S. national interests that Georgia become integrated into the 
European Union and into European institutions, in general. So, 
we can help them bilaterally, with the EU, obviously, in 
pushing Georgia's case forward. But, we can also help them with 
our bilateral assistance program. And I know that we are doing 
that.
    And if I am confirmed, I will make it a real priority to 
ensure that that trajectory stays on a nice steep path toward 
Euro-Atlantic integration. And, of course, that includes the 
EU.
    Senator Murphy. Thank you, Mr. Chairman, for allowing me to 
go over time.
    Senator Johnson. Not a problem.
    I am going to ask one other question before I close it out, 
so did you have any further questions before----
    Senator Murphy. That is okay.
    Senator Johnson. Okay.
    This question is really directed at Ambassador Kelly and 
Mrs. Pettit, but if any of the other nominees have anything to 
add, please do.
    My first congressional delegation trip was in the spring of 
2011, before I was on the Foreign Relations Committee, and we 
visited Georgia, Ukraine, Lithuania, Latvia, and Estonia. Back 
in 2011, the representatives from all of those countries were 
talking about what Russia was trying to do to undermine those 
fledgling democracies.
    We are seeing that, obviously, in spades today. I 
personally do not think Vladimir Putin is looking for off-
ramps. I think Vladimir Putin is looking for on-ramps. I am 
highly concerned about Latvia. I am not sure what he is going 
to be doing in Georgia. I was up, by the way, right at the 
border, and I was able to look through binoculars at the 
Russians in the occupied areas.
    The question I have is, What concerns do you have, in terms 
of what Russia is doing in Latvia or within the region, to 
undermine those democracies?
    We will start with you, Mrs. Pettit.
    Ms. Pettit. Thank you, Senator.
    I do not think I can say it any better than President Obama 
said it in Tallinn, right before the Wales summit in 2014, when 
he said that the defense of Tallinn and Riga and Vilnius is as 
important as the defense of Berlin, London, and Paris. And that 
is our very strong message.
    Latvia is our NATO ally. And, through our bilateral 
security assistance and through our NATO activities--including 
the Baltic air policing, the IMET program, our FMF program, 
Section 2282, all of the Wales commitments that we are in the 
process of implementing, the establishment of the command-and-
control unit in Latvia--each of the Baltic States will get a 
command-and-control unit, the Very High Readiness Task Force 
that is also being implemented--there is a lot going on. And I 
think this sends a very strong message of deterrence.
    Senator Johnson. Again, that is what we are doing----
    Ms. Pettit. Right.
    Senator Johnson. I am more interested, in terms of your 
knowledge of what Russia is doing. And I will throw out there 
the propaganda. I know I have gone over to Ukraine a couple of 
times with Senator Murphy, and with the bipartisan delegations, 
and it has always struck me how the Senators are shocked at how 
effective Vladimir Putin and Russia's propaganda is without any 
pushback, or virtually no pushback, on the part of the West.
    Ms. Pettit. Well, I----
    Senator Johnson. So, again, I guess I am looking just for 
your knowledge of what Russia----
    Ms. Pettit. Right.
    Senator Johnson [continuing]. Is doing----
    Ms. Pettit. There----
    Senator Johnson [continuing]. To undermine----
    Ms. Pettit. There is----
    Senator Johnson [continuing]. The democracy.
    Ms. Pettit. There is plenty of propaganda directed towards 
Latvia's Russian-language speakers. This is absolutely true. 
But, Latvia is addressing this issue. As I mentioned earlier, 
they have greatly enhanced the number of TV news programs they 
offer in the Russian language. Russian journalists are leaving 
Russia and moving to Riga. For example, a former editor of one 
of the biggest news platforms in Russia opened her own new 
platform in Riga, where there is press freedom. And she has 
gotten literally thousands and thousands of hits on her 
Russian-language Web site. The BBG, here in the United States, 
is working with--the Broadcasting Board of Governors--is 
working with Radio Free Europe and Radio Liberty and making 
available new Russian-language programs online. Our goal is 
provide objective, truth-based media to the Russian speakers in 
Latvia. This is an issue of concern also within the EU. And I 
believe, that shortly, the EU will also be working on this 
matter and addressing this matter.
    If I am confirmed, I will travel to the Russian-speaking 
areas of Latvia and engage directly with this population. And I 
think this is a great opportunity, again, to discuss or to 
present the U.S. view that there is strength in diversity.
    Senator Johnson. Okay, again, I am concerned with the 
hybrid or ambiguous war. And obviously, propaganda is part of 
that. Maybe the first part. But, there may be other actions 
Russia might be taking.
    Ambassador Kelly, are you aware of anything not even just 
in Georgia, but elsewhere in the Baltic States or--that ring of 
democracies around Russia? We obviously know it is happening in 
Ukraine.
    Ambassador Kelly. Yes, I--you know, as someone who has 
followed Russia for many, many years, and am a bit of a Russia 
media junkie, I am appalled by the kind of--well, let us just--
let us call it by its real name--by the lies that are being 
spread about what our intentions are in supporting these 
countries and about what Russia is actually doing in some of 
these countries.
    And in the case of Georgia, I think that they are ramping 
up their outreach to Georgia, in terms of media. There are some 
NGOs that are active in Georgia. And I think this gets back to 
what Senator Murphy was talking about, about our concern about 
the--maintaining the level of support within Georgia. And we do 
not want to see that level fall. And so, we would be concerned 
about messages that run contrary to our values, that we are 
seeing in the Russian media. And we need to, as I say, ensure 
that Georgians appreciate that we stand behind them in 
supporting their desire to join NATO and to join European 
institutions.
    And I know that Ambassador Norland has been very active in 
highlighting U.S. assistance for Georgia, in all of our public 
pronouncements, highlighting our support for their territorial 
integrity. And, as somebody who has dealt quite a bit in public 
diplomacy, I, too, will relish being able to go around Georgia 
and really show the Georgians that we are behind them.
    Senator Johnson. Okay.
    Any of the other nominees want to add anything on that 
subject? Sure. Mr. Delawie.
    Mr. Delawie. Thank you, Senator, just very briefly.
    Two of the major streets in Kosovo, in Pristina, are named 
George W. Bush Street and Bill Clinton Street. I do not think 
there will be fertile ground for any--too much Russian 
propaganda, in Kosovo at least.
    Senator Johnson. We rely on you to make sure that remains 
that way.
    Senator Murphy.
    Senator Murphy. Mr. Chairman, one final question that I 
meant to ask Ms. Noyes.
    The Croatians are currently flying Russian-made helicopters 
and are very interested in buying American-made Black Hawk 
helicopters, something that I spoke to their Defense Minister 
about when I was there, on the same trip where I visited 
Pristina. Can you commit to us that you are going to work with 
the Croatians to make a significant upgrade to their helicopter 
fleet, such that they are no longer reliant on Russian 
technology?
    Ms. Noyes. Thank you, Senator.
    I am delighted to report that this year we are working with 
Croatia to get them some Kiowas. And I understand that 
discussions are underway with regard to the Black Hawks. And, 
if confirmed, I would be delighted to support those efforts.
    Senator Murphy. Black Hawks are much better than Kiowas. 
[Laughter.]
    Thank you very much, Mr. Chairman.
    Senator Johnson. Thank you, Senator Murphy.
    Again, I would like to thank all of our witnesses for your 
testimony, for your thoughtful questions to our answers, and 
for your willingness to serve this Nation. I would like to 
thank your families for their willingness to support your 
service to this Nation.
    If there is anything we can, as a subcommittee of the 
Senate Foreign Relations Committee, do to help you succeed in 
your mission as our Ambassadors to those countries, please let 
us know. We really do not think often enough about how what 
this committee says, what we do, and resolutions we may be able 
to pass, how that can actually aid you. Think of this committee 
and keep in communication with us. Again certainly wish you the 
best.
    With that, the record will remain open for questions and 
statements until the close of business on Friday.
    This hearing is adjourned.
    [Whereupon, at 3:40 p.m., the hearing was adjourned.]

                              ----------                              


                               NOMINATION

                              ----------                              


                        WEDNESDAY, JUNE 17, 2015

                                       U.S. Senate,
                            Committee on Foreign Relations,
                                                    Washington, DC.
                              ----------                              

Gayle Smith, of Ohio, to be Administrator of the United States 
        Agency for International Development
                              ----------                              

    The committee met, pursuant to notice, at 2:03 p.m., in 
room SD-419, Dirksen Senate Office Building, Hon. Bob Corker 
(chairman of the committee) presiding.
    Present: Senators Corker, Risch, Johnson, Gardner, Perdue, 
Cardin, Menendez, Coons, Murphy, Kaine, and Markey.

             OPENING STATEMENT OF HON. BOB CORKER, 
                  U.S. SENATOR FROM TENNESSEE

    The Chairman. The committee will come to order.
    And I am going to go ahead and get rolling, and I am sure 
that Senator Cardin will be here in just a minute.
    USAID oversees 20 billion dollar's worth of aid to over 100 
countries. It is a very important organization. Gayle Smith, 
who has been nominated, will have 18 months to have an impact 
on this organization. And I will say that I think it is 
beneficial that she has served with the President's National 
Security Council and therefore inside the main building. She is 
someone that is trusted and not coming from the outside, and I 
know has been involved in these kinds of issues for a long, 
long time.
    I do hope that in your testimony you will talk about some 
of the priorities that we have had here. I think you know the 
committee passed out on a unanimous vote an effort to end 
modern slavery. I know it is something that you for years have 
been involved in and care about, but I hope you will speak to 
that in your testimony.
    I think you also know that there is a significant effort 
underway to reform the Food for Peace program. I know we talked 
about that some in our office. It is very important to many 
members. I think you know that some of us share the belief that 
it is a travesty that we are not serving the millions of people 
that could be served by reforming this program and being held 
hostage to various groups that benefit in ways that are not 
beneficial to the people that we are trying to serve.
    And then thirdly, Power Africa. There is a significant 
effort underway to make sure that the millions of people that 
do not have electricity even in their homes are able to do that 
in Africa, in particular, as I mentioned. And in the past, we 
have had some environmental issues that have said that, look, 
it is more important. We would rather people not have any 
electricity in their homes if it is going to produce 1 ounce of 
carbon, which is not exactly, I think, a policy or a value that 
most Americans adhere to. And I think we have been able to get 
to a place that achieves a balance between the environmental 
concerns, which I understand are real, but also the concern for 
human beings. And hopefully, you will talk a little bit about 
that.
    I am glad that in your testimony you are going to refer to 
the tremendous need to deal with the organizational issues 
within the organization. This year we hope to pass into law a 
State Department authorization. We passed it out of committee 
unanimously last week. We are attempting, still, to deal with 
that through NDAA. At some point we need to do the same with 
USAID, but you internally will be able to do much.
    So, I want to thank you for being here. I want to thank you 
for your willingness to serve. Again, I am glad the executive 
branch has nominated someone that has the kind of experience 
that you have.
    And when Senator Cardin arrives he may want to make some 
opening comments, but I think short of that it would probably 
be best--unless one of the other committee members would like 
to address--if you would go ahead and give your testimony. We 
would appreciate it.

STATEMENT OF GAYLE SMITH, NOMINATED TO BE ADMINISTRATOR OF THE 
           U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT

    Ms. Smith. Thank you, Mr. Chairman, and thank you for your 
comments on those important issues.
    Chairman Corker, Senators Menendez and Coons, I am honored 
to appear before you today as the nominee for Administrator of 
the United States Agency for International Development. It is 
truly a privilege for me to come before this committee, and I 
am grateful to President Obama and Secretary Kerry for their 
trust and confidence.
    I would also like to thank my family: my mother who is 
watching from Columbus, OH; my brother Jay and sister-in-law 
Marianne; Ben and Sarah; and my father and sister, who though 
they may not be with us, will always be part of a family that 
has continued to provide me with support and encouragement.
    Since being nominated, I have had the opportunity to 
consult with several members of this committee, and I have 
appreciated your guidance and counsel to ensure that USAID 
remains the world's top development agency.
    In this time of great need and opportunity, USAID is 
working with a diverse array of partners to end extreme 
poverty, foster sustained and inclusive growth, and promote 
resilient democratic societies both as an expression of our 
values and to transform them into peaceful, open, and 
flourishing partners of the United States. These are principles 
that have driven my own approach to international development 
across a 35-year career and principles that I will continue to 
uphold as Administrator.
    If confirmed, it would be an honor and privilege to support 
the USAID mission alongside the more than 9,000 selfless men 
and women who serve the American people in some of the world's 
most challenging environments.
    Should I have the honor of being confirmed, I will pursue 
four priorities.
    First, I will focus the Agency on programs that are 
achieving results and will be selective about initiating new 
commitments. I will work with Congress to institutionalize 
successful programs, including Feed the Future, Power Africa, 
and our efforts in maternal and child health.
    Second, I will provide the leadership, guidance, and tools 
needed to enable USAID staff in Washington and in the field to 
deliver against our most urgent priorities. This includes 
expanding the Agency's work on democracy, rights, and 
governance. This also means expanding the Agency's impact on 
human trafficking and on corruption, laying the groundwork for 
the success of a critically important strategy for Central 
America, and ensuring an equally important transition in 
Afghanistan.
    Third, if confirmed, I will act quickly to ensure that the 
Agency maintains global leadership and agility in responding to 
increasingly complex humanitarian crises. When a natural 
disaster strikes or a humanitarian catastrophe is imminent, 
USAID should be among the first on the ground to help those in 
need. I will also work with this committee and other 
stakeholders to pursue meaningful food aid reform that will 
enable us, as you, sir, suggest, to reach more people more 
quickly and while maintaining our historic partnership with 
U.S. farmers and maritime.
    Fourth and perhaps most important, I will focus on further 
strengthening the institution. This will involve expanding the 
capacity of the Agency to mobilize resources and engagement 
from other partners; to draw on science, technology, and 
innovation to address development challenges; and to increase 
investment in effective local solutions.
    Strengthening USAID also means tackling some of the 
management and operational challenges facing an agency that 
manages resources across more than 80 countries, often in 
complex environments. The Agency must ensure that American 
taxpayer dollars are spent responsibly. It must identify 
successful programs, learn from prior mistakes, apply lessons 
learned, and share best practices, all in an open and 
transparent way. If progress is not being made, it must take 
corrective action or terminate projects.
    But strengthening USAID also means supporting and listening 
to its people both here and overseas. These are men and women 
with knowledge, institutional memory, and invaluable insight. 
Indeed, they take on some of the most daunting tasks and 
aspirational missions one can imagine, all on behalf of our 
Government and our country. It is my goal to give them the 
visibility, respect, and gratitude that they deserve.
    Mr. Chairman and members of the committee, I thank you for 
considering my nomination, and I look forward to your 
questions. Thank you very much.
    [The prepared statement of Ms. Smith follows:]

                  Prepared Statement of Gayle E. Smith

    Chairman Corker, Ranking Member Cardin, and members of the 
committee, I am honored to appear before you today as the nominee for 
Administrator of the United States Agency for International 
Development. It is a privilege to come before this committee, and I am 
grateful to President Obama and Secretary Kerry for their trust and 
confidence.
    I would also like to thank my family--my mother, who is watching 
from Columbus, Ohio, my brother Jay and sister-in-law Marianne, Ben and 
Sarah, and my father and sister, who though they may not be with us, 
will always be part of a family that has supported and encouraged me--a 
family from which I draw strength and humor each and every day.
    Since being nominated, I have had the opportunity to consult with 
several members of this committee, and I have appreciated your guidance 
and counsel to ensure that USAID remains the world's preeminent 
development agency. From the humanitarian emergency in Syria and 
ongoing conflict in eastern Ukraine, to the pressing needs in Central 
America and the Ebola virus in West Africa, today's world demands 
creative solutions to increasingly complex problems.
    Over the past two administrations, we have seen unprecedented 
bipartisan support for the Agency's key initiatives, from global health 
and food security to humanitarian assistance and science and 
technology--as well as a recognition that the Agency's work must be 
informed by a rigorous use of evidence and data to guide 
decisionmaking. These are principles that have driven my own approach 
to international development across a 35 year career, and principles 
that I will continue to uphold as Administrator, if confirmed.
    In this time of great need and opportunity, USAID is working with a 
diverse array of partners to end extreme poverty, foster sustained and 
inclusive growth, and promote resilient democratic societies, both as 
an expression of our values and to help build them into peaceful, open, 
and flourishing partners of the United States.
    If confirmed, it would be an honor and privilege to support the 
USAID mission alongside the selfless men and women who serve the 
American people in some of the world's most challenging environments.
    With more than 9,000 men and women and a strong field presence in 
over 80 countries, USAID is uniquely positioned to flexibly respond to 
humanitarian crises with agility and to provide enduring leadership to 
solve the world's most intractable development challenges--all for less 
than 1 percent of the federal budget.
    Over the past 5 years, USAID has embraced a new model of 
development shaped by data and evidence that brings together an 
increasingly diverse community--private sector companies, 
entrepreneurs, local civil society organizations, universities, NGOs, 
and communities of faith--to deliver meaningful results.
    By using assistance to support capacity-building and reform 
critical policies, the Agency has led a government-wide effort to 
mobilize domestic and foreign private sector investments, including 
more than $10 billion of private commitments through Feed the Future 
and more than $20 billion through Power Africa. USAID has worked with 
entrepreneurs through its Global Development Lab to develop new 
technologies that address longstanding development challenges. It has 
partnered with a vibrant implementing partner community here in the 
United States that has made its own pledges to support reconstruction 
in Haiti, economic development in Africa, and global food security. And 
it has elevated the importance of local solutions, investing in the 
role and wisdom of partners on ground.
    Against this backdrop, USAID has responded to an unprecedented 
number of humanitarian crises spawned by earthquakes and typhoons, 
droughts and famines, the Ebola epidemic, and chronic and new 
conflicts. In the past year, the Agency has simultaneously operated an 
unprecedented five Disaster Assistance Response Teams, bringing new 
knowledge and creativity to bear, whether by building resilience even 
while providing emergency relief or adapting data and technology to 
enable a faster and more efficient response.
    USAID has taken great strides to improve operations, increase 
transparency, embrace accountability and ensure that the Agency is both 
responsive and responsible. There is much more to be done, but as 
someone who has worked with and observed this Agency and our foreign 
assistance programs for decades, I can sincerely offer that it is well 
on a path of reform and revitalization that is yielding and can yield 
greater and more potent returns for the United States and millions of 
men, women, and children around the world.
    I believe that we share the view that both development and 
responding to humanitarian crises are in our national interests and 
that these pursuits reflect our values. I also believe that we share 
the view that we need a strong, capable, effective, and responsible 
USAID to pursue these interests and values. It would be an honor to 
serve as the USAID Administrator, and to turn my qualifications and 
experience to the task of leading the Agency.
    Over a 35-year career in development and international affairs, I 
have spent two decades in the field, much of that time well outside 
capital cities. As a journalist for the BBC, American and European 
outlets, I spent months at a time in active war zones, covering 
conflicts that had escaped the world's attention.
    I have consulted for the World Bank, UNICEF and major American 
foundations. I have worked with several NGOs, including members of the 
World Council of Churches when they mounted a cross-border emergency 
relief operation during the Ethiopian famine. I cofounded two NGOs, and 
today, the Modernizing Foreign Assistance Network and the ENOUGH 
Project remain active and effective advocates for a robust U.S. policy 
in support of development and human rights.
    I have served on a congressional commission--the Helping to Enhance 
the Livelihood of People around the Globe (HELP) Commission--which was 
established to review U.S. foreign aid, and I worked for USAID, based 
in East Africa. I have served two Presidents, as Senior Director for 
African Affairs on President Clinton's National Security Council staff 
and as Senior Director for Development, Democracy, and Humanitarian 
Affairs under President Obama. I have traveled and worked with former 
President Carter and provided advice and assistance to President George 
H.W. Bush's National Security Council staff.
    Over the last 6 years, as a member of the Obama administration, I 
have coordinated administration policy on global development and 
foreign assistance programs, democracy, governance and anticorruption 
efforts, and humanitarian crisis response.
    Early in my tenure, I spearheaded efforts to develop the 
Presidential Study of Global Development Policy and the first-ever 
Presidential Policy Directive on Global Development, which elevated 
development alongside defense and diplomacy as pillars of American 
foreign policy.
    Responding to humanitarian crises has been a significant focus of 
my time at the National Security Council, including the Nepal 
earthquake, major typhoons in Asia, the Ebola outbreak in West Africa, 
and ongoing conflicts in Syria and Iraq.
    Working with departments and agencies, including USAID, I have 
assumed the primary role at the National Security Council for all major 
development priorities, including Feed the Future, Power Africa, ending 
the HIV/AIDS epidemic, maternal and child health, the Open Government 
Partnership, and the Partnership on Illicit Finance. I have co-led, 
with colleagues, the development of the Global Health Security Agenda, 
the U.S.-Africa Leaders Summit, and the President's Stand with Civil 
Society Initiative.
    Should I have the honor of being confirmed, I will pursue four 
priorities.
    First, I will focus the Agency on programs that are achieving 
results and will be selective about initiating new commitments. 
Further, I will work with Congress to institutionalize these programs. 
I will also work with this committee and other stakeholders to pursue 
meaningful food aid reform that will enable us to reach more people, 
more quickly, in times of need--all while maintaining our historic 
partnership with U.S. farmers and maritime.
    Feed the Future and the New Alliance for Food Security and 
Nutrition have together elevated food security on the global agenda, 
registered direct impact on reducing poverty and improving nutrition, 
and mobilized billions of dollars in direct assistance and private 
resources. In 2013 alone, Feed the Future reached more than 12.5 
million children with nutrition interventions and helped more than 7 
million farmers and food producers use new technologies and management 
practices on more than 4 million hectares of land. If confirmed, I will 
ensure that Feed the Future and related nutrition programs continue to 
deliver these evidence-based results.
    With a long-term goal of doubling access to cleaner, reliable, and 
efficient electricity in sub-Saharan Africa, Power Africa has already 
brought more than 4,100 megawatts worth of power transactions to 
financial close and raised over $20 billion from more than 90 private 
sector partners. At the U.S.-Africa Leaders Summit, President Obama 
tripled our initial goal to 30,000 megawatts, aiming to bring 
electricity to 60 million homes and businesses in Africa. If confirmed, 
I will support Power Africa as it closes more power transactions, 
partners with additional businesses, and expands into new countries.
    If confirmed, I will continue the Agency's leadership in the global 
effort to end preventable child and maternal deaths. USAID has led an 
international coalition that developed targeted action plans in 24 
priority countries that will save the lives of 15 million children and 
600,000 women by 2020. I will also work closely with the Office of the 
Global AIDS Coordinator, the Centers for Disease Control, the National 
Institutes of Health, and international and local partners to ensure 
that USAID does all it can to contribute to a goal that is within 
reach: ending the HIV/AIDS epidemic.
    Second, I will provide the leadership, guidance, and tools needed 
to enable USAID's staff in Washington and the field to deliver against 
our most urgent priorities. This includes expanding the Agency's work 
and impact on democracy, rights, and governance by securing and 
mobilizing additional resources to strengthen institutions and the rule 
of law, support and build the capacity of civil society organizations, 
enable free and fair elections, foster dialogue and promote 
transparency, and build on the successes of, for example, the recent 
elections in Nigeria. This also means, as I have discussed with several 
of you during our consultations, expanding the Agency's impact on human 
trafficking and corruption, laying the groundwork for the success of a 
critically important strategy for Central America, and ensuring an 
equally important transition in Afghanistan.
    Third, if confirmed, I will act quickly to ensure that the Agency 
maintains global leadership and agility in responding to increasingly 
complex humanitarian crises around the world. In 2014 alone, USAID 
responded to 49 disasters in 42 countries. In addition to the Ebola 
outbreak in West Africa, these included major crises in Syria, Iraq, 
South Sudan, Central African Republic, and, most recently, the 
earthquake in Nepal.
    The Agency has developed an effective relationship with the 
Department of Defense, which has on multiple occasions deployed in 
support of USAID. USAID also continues to build the capacity and 
resiliency of governments to respond to disasters themselves. When a 
natural disaster strikes or a humanitarian catastrophe is imminent, the 
Agency is and should be among the first on the ground to help those in 
need, and in a world rife with crises, I believe it is critical to 
ensure that USAID remains one step ahead.
    Fourth, and perhaps most important, I will focus on further 
strengthening the institution. That means building on the reform agenda 
launched by Administrator Rajiv Shah. This will involve expanding the 
capacity of the Agency to mobilize resources and engagement from other 
partners; to draw on science, technology, and innovation to address 
development challenges; and to increase investment in effective local 
solutions.
    Strengthening the institution involves tackling some of the 
management and operational challenges facing an agency that manages 
resources across over 80 countries, often in complex environments. It 
is my view, and one that is shared by the staff of USAID, that the 
Agency must ensure that American taxpayer dollars are spent 
responsibly. It must identify successful programs, learn from prior 
mistakes, apply lessons learned, and share best practices--all in an 
open and transparent way. If progress is not being made, it must take 
corrective action or terminate projects.
    USAID has already implemented critical reforms to safeguard 
taxpayer dollars, ensure greater accountability and oversight, and 
focus on sustainable results. In 2013, the Agency issued new guidance 
for awarding contracts that increased the weight of past performance in 
identifying potential contractors. Its new compliance unit has already 
executed over 200 suspension and debarment actions since its inception 
in 2011. If confirmed, I will build on these and other components of 
the reform agenda that strive to make the Agency more accountable to 
Congress and the American people. I will always be fully transparent 
about what is working and what is not, and I will ask for your help in 
solving problems and seeking opportunities.
    Strengthening USAID also means supporting and listening to its 
people, both here in Washington and overseas. These are men and women 
with knowledge, institutional memory, and invaluable insight. Indeed, 
they take on some of the most daunting tasks and aspirational missions 
one can imagine, all on behalf of our government and our country. It is 
my goal to give them the visibility, respect, and gratitude that they 
deserve.
    Mr. Chairman, Ranking Member Cardin, and members of the committee, 
should I have the honor of serving as Administrator, you have my word 
that I will be ambitious but focused; that I will not downplay 
challenges but seek your help; that I will strengthen a growing 
bipartisan consensus on development that serves us and the world so 
well; and that I will pass on to my successor an Agency that is strong 
and effective, responsive and responsible, and transparent and 
accountable--an Agency worthy of its dedicated men and women and those 
around the world that they aim to serve.

    The Chairman. We thank you for being here.
    And our distinguished ranking member--I do not know if you 
want to make some opening comments. Okay.
    As we have mentioned and you have mentioned, we have been 
working on some human trafficking issues and certainly hope to 
do something to majorly affect modern day slavery. What 
approaches has USAID identified and tested that demonstrably 
contribute to reducing modern day slavery?
    Ms. Smith. Thank you, Senator, for the question and also 
for your leadership on this issue.
    I think USAID to date has done a lot to contribute to this 
in the areas of training on rule of law, information and 
education through the media, through NGOs, through new 
applications, and new technologies, through also responding to 
the victims of human trafficking.
    As you and I have discussed, I think that there is a 
foundation to build on and that we could actually do much more. 
If confirmed, I hope that we can expand on the work the agency 
has done to integrate the fight against human trafficking into 
its programs around the world to take full advantage of its 
presence in over 80 countries, to work on, importantly, the 
supply chains that USAID focuses on frequently as it is working 
on economic development and which, as you know, are among the 
places that human traffickers hide and exploit the most 
vulnerable.
    So if confirmed, this is something that I will make a 
priority. I believe the men and women of the Agency believe it 
is a priority, and I very much look forward to working with you 
and others on the committee to explore what more we can do on 
this important agenda.
    The Chairman. We, as you know, have been working on the 
Food for Peace program that I alluded to earlier. There is 
always a tug between working on this and making sure that the 
United States agriculture community is on board because, 
obviously, it matters relative to putting these reforms in 
place.
    There are a lot of people out there that are trying to 
allude to the fact if we create more flexibility, that much of 
what we will be buying we will be buying from Russia and/or 
China, which is not true. But I wonder if you could expand on 
that non-fact?
    Ms. Smith. Senator, I think on this issue the facts show us 
a few things. One, Food for Peace has been an enormously 
valuable program for many, many decades. And I think we want to 
preserve----
    [Audience disruption.]
    The Chairman. One of your supporters, I guess.
    Ms. Smith. Yes. [Laughter.]
    Anyway, if I may continue, Senator. Food for Peace has been 
a vital program. I have spent a lot of time in the field and 
have seen cases where food aid made an important difference, 
but also cases where the greater flexibility to which you 
allude would be enormously valuable in reaching more people 
more quickly. It is my belief that in consultation with key 
partners, constituents, and supporters of that program over 
time--it is my hope that we can find a way forward that would 
give USAID and particularly our people in the field that 
flexibility and ensure that at the same time we reflect and 
take into full account the very legitimate and important 
interests of our communities here. I am optimistic that we can 
find a way forward. I am very encouraged by the number of 
Senators, yourself included, who have raised this during the 
consultations prior to this hearing. And so it is my intent, if 
confirmed, to work very closely with all of you to see if we 
can get this done.
    The Chairman. Your predecessor had worked on, in essence, a 
$95 million transfer from food aid to the maritime industry in 
order to give ourselves the flexibility to feed more people. 
And as bad as that sounds--I actually wish every American could 
be aware of that--but as bad as that sounds, if there is a way 
to phase that out over a period of time so that it got to zero, 
there may be a way of dealing with this. I just wonder if you 
might give some editorial comments regarding that?
    Ms. Smith. Senator, I am a little bit hesitant to get too 
specific on the particulars. But I do think in principle--and I 
followed very closely Administrator Shah's work on this--that 
we can find ways to transition toward a program that is 
mutually beneficial to all involved. And I think considerable 
time has been given to thinking through how to do that within 
the Agency, even after Administrator Shah's departure, and I 
know among members of this committee. So I would be happy to 
sit down with you and with others to work through what exact 
calibration might be most appropriate and to consult, again, 
with all stakeholders so we can find a way to do this.
    The Chairman. On Power Africa--the administration has spent 
a great deal of time talking about renewables being sort of the 
base delivery system in Africa. Not unlike our own country, 
there are places where renewables work decently well and there 
are places where they just do not. Does the administration 
support the development of fossil fuel energy as an integral 
and indispensable part of Power Africa acknowledging that, at 
its base, it is more important that we ensure that people have 
access to electricity than promoting goals that just do not 
agree with the particular area that we are in, and actually are 
not feasible?
    Ms. Smith. Thank you, Senator, again for your interest in 
Power Africa.
    Let me say a couple of things about how we have structured 
this initiative and address your particular question.
    Power Africa, in identifying priority transactions, looks 
at a number of things. It looks at private sector demand, the 
potential for transformational projects, buy-in from the 
government, opportunities to exploit the vast resources on the 
continent, project viability, and overall impact.
    Now, within that, it is our belief that like any modern 
power sector, we need to rely on a broad array of generation 
sources, including wind, solar, hydropower, geothermal, and 
natural gas.
    On the particular issue you raised, except in the poorest 
countries or where those plants are equipped with carbon 
capture and storage technology, the United States does not 
provide public financing for new coal-fired power plants 
pursuant to President Obama's Climate Action Plan of June 2013.
    Now, I want to be very clear that this is with the 
exception of the poorest countries, many of which are on the 
African Continent.
    The Chairman. So you are saying in those areas that are 
very poor, that we are trying deal with the people in most 
need, that the Obama administration would support coal 
facilities to produce power?
    Ms. Smith. I think if these met the other criteria that we 
have designated as key for identifying projects, according to 
the terms of the Climate Action Plan in those poorest 
countries, it would be worthy of consideration.
    The Chairman. If you do not mind, what are some of those 
other criteria?
    Ms. Smith. As I said at the start, we try to look at need, 
where we are going to have transactions that will have impact, 
where we have investor interest, buy-in from the government, 
where our experts take a look and think that the project is 
likely viable and it can make a meaningful contribution to the 
ultimate goal of Power Africa to double access to electricity. 
So those would be the individual project criteria.
    The Chairman. So almost any of the countries we are dealing 
with would meet that criteria?
    Ms. Smith. Most countries in Africa would meet that 
criteria. I think there are a few where it is a little bit 
difficult, given the current conditions.
    The Chairman. And again, natural gas. There are all kinds 
of other ways of dealing with it. I am not here to push one 
particular area. But obviously, when you are living in a place 
with zero electricity, getting that is important, and maybe 
some of these other criteria need to move away. So I think you 
have said that you agree with that--that the Obama 
administration agrees.
    Ms. Smith. I think it is critically important. And I think 
the other thing that Power Africa has done very well is an 
initiative called Beyond the Grid, which also looks at people 
in some of the poorest areas of Africa and the most remote and 
where new technologies and innovations can be deployed through 
micro-grid, or off-grid solutions. So that is another option 
for reaching some of the most vulnerable.
    The Chairman. Thank you.
    Ms. Smith. Thank you.
    Senator Cardin. Well, Mr. Chairman, first thank you for 
scheduling this hearing. I think it is very important that we 
move forward in the nomination process and have a confirmed 
Administrator for USAID. This is a critically important 
position, and I thank you for your cooperation in scheduling 
this hearing.
    I want to thank Mrs. Smith for her willingness to continue 
to serve and her willingness to step forward with this very 
important position. And I want to thank your family because we 
know this is a joint sacrifice, and we thank you very much for 
that.
    We have been debating for 3 weeks on the floor of the 
Senate our national security budget for the Department of 
Defense. The role that we play in development assistance is 
equally important part of our national security budget. So we 
consider the responsibility of this position to be one of the 
highest in our national security interests. So we thank you 
again for stepping forward.
    Yesterday under Chairman Gardner, we had a hearing in the 
East Asia and The Pacific Subcommittee dealing with trade in 
the region, and USAID was present to talk about capacity-
building for trade. If we are going to have successful 
opportunities there, countries need to have the capacity to 
deal with modern trade agreements, and USAID plays a very 
important role there. And I could keep on going on about 
additional areas in which the responsibilities of the agency 
that you are being considered to lead plays.
    Under Administrator Shah, there were new initiatives that 
many of us supported, including the Global Development Lab 
which allowed us to do more with the recognition that our 
resources are limited, by leveraging the help of private 
companies, universities, and NGOs. All of that is important. 
And I know that you understand how critically important it is 
to prioritize. And you and I had conversations about that, and 
you mentioned that in your preliminary statement.
    I want to talk a little bit about human rights. You are not 
going to be surprised to learn that, because I think USAID can 
play a critically important role in advancing human rights, I 
want to talk about three priorities within that.
    First, what efforts do you believe we can make to fight 
corruption? What will be our anticorruption strategies? When we 
look at stability globally, we find the countries that have not 
been able to deal with corruption are going to have a problem. 
Many believe that the Ukraine revolution was not so much about 
Russia's influence but more about people who wanted an honest 
government. We could go on--the Arab Spring was also a 
condemnation of governments that were corrupt and denied their 
people basic human rights.
    The second issue I want you to talk about is the role of 
women. We have also found that the way a country treats its 
women is a good indicator of a nation's strength. And I am 
interested in your commitment and ideas and vision as to how 
USAID can be more effective in advancing the rights of girls 
and women globally as we look for greater stability and more 
reliable strategic partners.
    And the third issue--and I put all three on the table--is 
that World Refugee Day is coming up. We are approaching 60 
million refugees today, one of the highest numbers of refugees 
in modern history. When you look at the number of displaced 
people around the world, we have a crisis, and USAID needs to 
be actively engaged in what we are doing to deal with this 
humanitarian crisis.
    So I would like to hear your vision in regards to how we 
will advance anticorruption measures as part of any program 
within USAID, how you plan to make advancing the rights of 
women and girls the highest priority within your agency, and 
what are we doing to carry out our responsibility in regards to 
the world refugee issue.
    Ms. Smith. Thank you, Senator. And I was thrilled when you 
raised in our meeting and as you raise right now the issue of 
corruption. I could not agree with you more, that it is perhaps 
the greatest enemy to development.
    The flip side of that, of course, is if we can tackle 
corruption in meaningful ways, it frees up significant 
resources for development. This is something that is a priority 
for the Agency. It is something I would like us to build on 
through some terrific things the Agency has done over the 
years.
    The first is, obviously, transparency. Now, that means 
transparency for USAID but also encouraging and calling for 
greater transparency from its partners. As you know, it makes a 
huge difference when citizens can see where resources go. So I 
think that is the first thing.
    I think the second area--and this is where I think we are 
seeing some significant--insufficient but significant--momentum 
around the world is on greater adherence to norms and 
standards. We have been able, through multilateral 
organizations and other means, to work with countries to sign 
up to the international laws, rules, obligations, and treaties 
that require norms and standards on corruption.
    The third--and I mentioned this to you in our meeting--is 
something called the Open Government Partnership, which the 
United States was a founder of with several other countries and 
has now grown to over 65 country members. What is quite 
interesting in that initiative is that it requires governments 
to join in publishing their budgets. Publishing the budget 
makes a huge difference and breaks the ice, if you will. I 
think we can build on that. Some countries have used it more 
effectively than others. A critical piece is that it entails a 
partnership between governments and civil society where civil 
society holds the government accountable for meeting the terms 
of its open government plan.
    We are also working on--and this is something we would like 
to build on--a partnership to deal with illicit finance. There 
are huge losses in capital to the developing world to illicit 
finance. So that is also a priority on the corruption side.
    Let me turn to your two other issues, if I may.
    I think USAID has made the rights and well-being of women 
and girls a priority for many, many years, and that is a 
priority I would very much like to build on, whether it be in 
global health where it is a primary focus, in Feed the Future 
where there has been a particular focus on women farmers, but 
also in the areas of rights, access, and critically important, 
in training. I have traveled around the world and seen a lot of 
USAID missions. I have seen a lot of leaders in civil society 
and government. I have been very proud to see that some of 
those people were trained by USAID. So I think the training 
mission is critical, and support raising this issue at every 
opportunity.
    Finally, USAID is also participating in the First Lady's 
initiative called Let Girls Learn, which is about enabling more 
young women to pursue their secondary education.
    World Refugee Day is daunting. The numbers are staggering. 
USAID works closely with partners in the State Department's 
Bureau of Population, Refugees, and Migration on this issue. It 
is my very strong view that we have to give a lot more 
attention to this so there is a better understanding of the 
consequences of conflict and violations of human rights. So, 
again, this is something that I think is in the Agency's 
humanitarian mission--while my hope is to strengthen the 
Agency's ability to stay a step ahead and respond, it is also 
to give much greater visibility to these issues.
    Senator Cardin. Let me just point out--and I appreciate not 
only your response but the conversations that we have had on 
these subjects. You give me great confidence that these all 
will be highest priorities in your agency.
    We need to be very strict about how we use our aid programs 
in countries that have challenges in dealing with corruption. 
We have got to make sure that the United States aid program is 
not contributing to a corrupt government or corrupt officials. 
And it is critically important that the Administrator send a 
very clear message and have clear directions on how not to 
participate in or fund corruption within governments.
    Ms. Smith. I could not agree with you more, Senator, and if 
confirmed, you will have that.
    Senator Cardin. Thank you.
    The Chairman. Senator Gardner.
    Senator Gardner. Thank you, Mr. Chairman.
    And thank you for being here today. It is great to have a 
University of Colorado graduate testifying before the panel. So 
welcome.
    And I just wanted to follow up some of the conversations we 
had in my office.
    Yesterday we did have a hearing--Senator Cardin and I--with 
Jason Foley, the Deputy Assistant Administrator for Asia for 
the Agency. It was a good conversation.
    One of the things we talked about is just where priorities 
are for the Asia-Pacific region. If you could just spend a 
little bit of time talking about that, I would appreciate it.
    Ms. Smith. And I think the greater emphasis on Asia has 
been reflected in an increase in resources and personnel. As we 
discussed the other day, I think there are some other things 
that we can explore in Asia. And I am interested in the 
reference to trade capacity-building. That is one of them. I 
think that is something USAID makes huge contributions to 
around the world whether it is at the level of petty trade, 
local trade, national, regional, or in fact global trade.
    What I would like to do, if confirmed--and Senator, I would 
love to work with you and others on this--is do more of in Asia 
and elsewhere of what USAID has done very well in other parts 
of the world, and that is to help work on the constraints to 
private capital flows and increase private capital flows in 
support of development in Asia. That is number one.
    Number two, work with governments again to build on what 
USAID has done to date to build the capacity to run and sustain 
economies that are inclusive and deliver for their citizens. I 
think that there is a lot that we can build out on, some of it 
aided by resources, which are critically important, as you have 
pointed out; some of it by taking the lessons the agency has 
learned in other initiatives in other parts of the world and 
applying them more effectively there.
    So these are all things I think we can do. I am quite 
interested--as I say, I have less experience in Asia than other 
parts of the world--in consulting with you and with others and 
obviously our men and women in the Agency here in Washington, 
particularly those in the field, to see what more can be done.
    Senator Gardner. Thank you.
    Last year, the GAO, the Government Accountability Office, 
produced an assessment of USAID's trade capacity-building 
efforts and concluded--and I will quote the report. The U.S. 
Agency for International Development's 2003 trade capacity-
building strategy does not directly guide TCB activities and 
parts of the strategy no longer reflect the current TCB 
environment.
    If confirmed, do you plan to update the TCB strategy?
    Ms. Smith. Yes. I think that is something we can do, 
Senator--I have worked with USAID on this in my current 
capacity, and I think USAID has learned a great deal. One of 
the things USAID has also done a phenomenal job of over the 
last few years is, again, taking those lessons and then 
figuring out how to apply them. So I think that could be a 
very, very good exercise.
    Senator Gardner. Thank you. And I would love to follow up 
with you on some of the ideas for doing just that.
    Ms. Smith. Great. Thank you.
    Senator Gardner. Thank you.
    Mr. Chairman, thank you.
    The Chairman. Senator, I noticed her staff was somewhat 
alarmed that she would answer a question off the cuff like 
that. So thank you for doing that. [Laughter.]
    There was quite a shock in the back. [Laughter.]
    Senator Menendez.
    Senator Gardner. That is the training of a University of 
Colorado graduate right there. [Laughter.]
    Senator Menendez. Well, welcome. All my questions are off 
the cuff. No.
    First of all, as someone who has been and is a huge 
supporter of USAID, this is an incredibly important nomination. 
I congratulate you on being nominated. And I appreciate having 
listened to you here at the hearing describe your priorities in 
the same way that you did in the private meeting that we had.
    And there are a lot of issues I have, some which I will 
submit for the record. But the one that I want to pursue with 
you is the question of democracy and governance, and following 
on to Senator Cardin's questions of human rights.
    I am concerned that democracy and governance at USAID under 
the President's tenure has been cut by 38 percent, and I think 
there are a lot of critical countries in the Middle East, North 
Africa, Latin America, and Africa as a whole that have great 
needs that are woefully underfunded. And part of our challenge 
is, yes, economic growth and giving people greater 
opportunities, but in part that comes from more transparent 
democratic governance at the end of the day in countries, which 
is a longer term proposition, but nonetheless incredibly 
important to stop, because when in the Middle East you are 
facing a future that is so dismal that you can have your mind 
converted to believe that dying is more glorifying than living, 
that is a real challenge. It is a challenge to our national 
security and interests. It is a challenge in the region. And 
unless we change the dynamics of what is happening in those 
countries over time, we will continuously be in a perpetual 
war. And so I think it is important to be thinking about that 
in the long term, but it has got to start in a more significant 
way. When you cut democracy and governance by 38 percent, it 
does not lead us in the right direction.
    So, one, I would like to get your sense of how you will try 
to stem the tide here. Two, I would like to get a sense from 
you that--and you and I talked about this a little bit, about 
those who would say that stability is more important than 
democracy and governance, that we are willing to look the other 
way on democracy and governance in order to have stability.
    And three, do you believe that if a country resists or 
attempts to thwart our democracy initiatives that we should 
simply end those programs in that country, as we are seeing 
such challenges, for example, in Pakistan, where several 
members of this committee and others of the Senate have written 
about NGOs, the NDI, The Republican Institute, and Save the 
Children, and others having challenges in Pakistan? Give me a 
sense on those issues.
    Ms. Smith. Thank you, Senator, and thank you both for the 
conversation we had the other day and your leadership on these 
issues.
    I agree with you on the importance of resources, and I 
believe you are aware that the President's request includes an 
increase in resources for democracy and governance.
    But I think there are several other things we need to do.
    One is press others to also increase their resources. I 
think worldwide, if you look at investments in democracy, 
governance, and human rights, they are far below where they 
should be, and I think we are in agreement that this is 
essentially the backbone that is needed to ensure that the 
gains of development are sustained.
    I would also like to look at the potential impact of having 
additional personnel on the ground, particularly democracy and 
governance officers, who often, with technical assistance--but 
not necessarily large quantities of assistance--can play a 
hugely important role in training and using their convening 
power and other tools to build capacity. I think USAID's record 
on training at the institutional level for civil society and 
NGOs is something we can build out. I know the Agency is 
looking at how to make greater use of regional platforms where 
more people and more organizations can be trained at once and 
where also, and importantly, networks can be built.
    I also believe, sir, that a government that is credible in 
the eyes of its citizens is a government that delivers 
transparently and in ways that are meaningful and impact the 
lives of those citizens. So in the areas where USAID has a very 
big presence and budget in health and in food security, the 
Agency has worked on--and I think we can expand--also looking 
at governance in those sectors. Is it transparent? Are the 
budgets transparent? Are citizens able to avail themselves of 
the equivalent of a feedback loop to ensure that, again, those 
services are delivered but in a way that is effective and 
transparent?
    As I mentioned in response to Senator Cardin the Open 
Government Partnership, I have been quite impressed by what 
that has provided in terms of triggering a worldwide debate on 
what open governance means and what the obligations of 
governments are, while also exercising the muscles of some 
governments in transition, with their civil societies to see 
what it is actually like to both cooperate and have civil 
society hold governments accountable.
    I believe as well that USAID is in a very good position, 
along with the State Department, to play the role of broker or 
facilitator in dialogue between governments and civil society.
    I appreciate that you also made, sir, the point about this 
being a long-term proposition. I think the importance of our 
investing as a nation through USAID and by any other means in 
institution-building is ultimately the key because it is when 
we have got strong, effective, and transparent institutions 
that I think we have the greatest assurance.
    Senator Menendez. Let me make one observation before my 
time runs out, as well as one final question.
    Ms. Smith. Yes.
    Senator Menendez. And your answer, which I appreciate, a 
lot of it was focused on governance, and I agree that is an 
important issue. But I also think we have to decide whether 
USAID is going to play a role in democracy-building or not. And 
if it is, then it needs to be robust, and if it is not, then we 
need to think about how we move those resources to an entity 
that would, which brings me to my final question.
    I am pleased to see that the administration has its 
traditional request for Cuba democracy programs at $20 million. 
And I have clearly a very different view of United States-Cuba 
policy than the administration. But the one thing, I would 
think, that we can all come together on are programs that 
ultimately we pursue worldwide in other countries that are 
undemocratic, and that we do not allow the entities in those 
countries, whether they are autocratic dictatorships or other 
authoritarian regimes, to just stop our programs at the end of 
the day because they do not like it, otherwise we would have 
given up a long time ago and would not have been successful in 
Eastern Europe at the time of Vaclav Havel, Lech Walesa, and so 
many others.
    So the question is, as it relates to Cuba democracy 
programs, can you make a commitment that you will prioritize 
programs that strengthen independent civil society, defend 
human rights, and expand democratic space and increased access 
to information inside of Cuba?
    Ms. Smith. Senator, yes. Let me address a couple of things 
you have said.
    First, I believe that the U.S. Agency for International 
Development is and must be an agency that is about supporting 
democratic institutions, expanding democracy and democratic 
practices. So I think that is and must remain a priority.
    With respect to Cuba, my understanding is USAID is 
continuing programs in democracy, governance, human rights, and 
the free flow of information, and intends to do so. And that is 
certainly my intention if confirmed.
    I also believe you make a very important point with respect 
to the situations where we find that governments reject, close 
space, or take other measures that constrain the evolution of 
democracy. I think we need to respond in those cases. I think 
we may respond differently in different cases and must do what 
is effective. In some cases, we may not be supporting an actual 
government. We may be working primarily with local civil 
society or other groups. But I do think it is something we must 
respond to, and I will, if confirmed.
    Thank you.
    Senator Menendez. Thank you.
    Thank you, Mr. Chairman.
    The Chairman. Senator Coons.
    Senator Coons. Thank you, Chairman Corker.
    And welcome, Ms. Smith.
    Ms. Smith. Thank you.
    Senator Coons. I very much look forward to your 
confirmation and to continuing to work with you in what I hope 
will be your new role in leadership of USAID.
    And I appreciate and just want to join with the chairman in 
questioning about food aid reform and then talk a little bit 
more about effectiveness, monitoring, and economic development, 
if I could.
    What role do you see for local and regional procurement and 
for readjusting some of the commodity and cargo preferences in 
the path forward toward a reasonable and balanced reform to our 
food aid program?
    Ms. Smith. Senator, again, as you know, the President in 
his budget made a proposal for food aid reform. So I certainly 
believe that this is something we need to pursue.
    I believe there are ways to do it. I think there is 
probably some sort of equation that will be the ultimate 
solution. I am a little bit hesitant to get exactly into the 
particulars because in my current role I have not been directly 
consulting with all the parties.
    But I do think we can and should find a balance that does a 
number of things: enables the Agency to respond more quickly 
and meet the needs of more people while maintaining those very 
important, vital parts of a program that have served us well 
over many years and also meet the needs and concerns of a broad 
range of constituencies. I think it is entirely possible. It is 
something I would make a priority, if confirmed.
    Senator Coons. Great. Well, I look forward to working with 
you, the chairman, and other members on achieving that right 
balance between a lot a different interests and concerns.
    There is a number of initiatives that you may well get to 
carry forward that are, in no small part, focused on economic 
development in a part of the world we have both spent a fair 
amount of time in, whether Power Africa, Trade Africa, Feed the 
Future, Global Health Initiative. I have a concern about Power 
Africa that it has largely been funded out of democracy and 
governance programming funds, and my hope is that we will get 
an authorization and then dedicated sources of funding for the 
long term. But speak to those initiatives, if you would, in 
terms of which you think has been most successful in the last 5 
years and which you would prioritize your focus on, if 
confirmed as Administrator, to try and advance both economic 
development and human development.
    Ms. Smith. Thank you, Senator, and thank you for your 
engagement on Africa, but also your engagement on development.
    I believe Feed the Future is one of the most successful 
initiatives we have seen in a long time. And I would point out 
that it was originally built as an initiative that started in 
Africa and has now expanded. There are Feed the Future 
countries outside of Africa that follow the same model, which 
include countries having a comprehensive plan and their own 
investing in that plan. I think this is something we can build 
on. I think it is something that has influenced the rest of the 
world. I think we have put food security and agricultural 
development back on the world's map, both through Feed the 
Future and support for that initiative. So I think anything we 
can do to ensure that it not only achieves as much impact as 
possible over the next 18 months but also well beyond that. I 
sincerely hope that Feed the Future is an initiative that will 
be continued, and I think it is worthy of it.
    Power Africa--and I would be delighted, if confirmed, to 
work with you on any resource issues--I think is something that 
has shown us that the development model that USAID and the 
other agencies and departments that are part of that 
initiative, because there are 12 all together, have figured 
out. I think there has been a search for the silver bullet on 
energy or infrastructure. I do not believe there is one, but I 
do think that we have come up with something that allows us to 
identify viable projects, interested investors, and 
importantly, break down the constraints and build the capacity 
that is necessary to get a transaction done that not only 
yields greater access to electricity but exercises the muscles 
of trade and investment and also demonstrates success. Because, 
as you know very well, in Africa, risk perception is a very 
powerful thing, and I think over time we are reducing it.
    I think it is also important that Power Africa is not 
overwhelmingly assistance-driven. The team has USAID at the 
lead, but again, all of those agencies and departments have 
done a phenomenal job of leveraging private sector capital and 
working with other countries. Sweden has put $1 billion behind 
this. The World Bank is engaged with us. So, again, using our 
leadership and a good idea to get others involved has been key.
    I think Global Health, if I may, Senator, is and will 
remain a top priority I certainly hope for this administration, 
as it has for past administrations.
    Senator Coons. Thank you. Across those few, if I might, I 
am pleased to hear that you think Feed the Future is scalable--
--
    Ms. Smith. I do.
    Senator Coons [continuing]. And can expand just its early 
success in Africa and is worth working together to sustain and 
grow.
    Second, I hope within Global Health that the development of 
an HIV vaccine will continue to be an area of priority and 
focus. Although it has a long trajectory, it would have an 
enormous cumulative impact.
    I also just wanted to recognize that the value of 
partnering with other development entities from around the 
world, with the private sector, as demonstrated in your 
comments, I see real value in. The Millennium Challenge 
Corporation I think in a number of countries where I have had 
the opportunity to visit with its sites and when I have had the 
chance to meet with their leadership has turned me from a 
skeptic to a real advocate because I think that long-term model 
of having metrics and accountability and measurable results and 
of doing development in partnership with other governments in a 
way that builds their capacity I think is really promising.
    Let me, as a last question, just mention the Paul Simon 
Water for the World Act. I joined a number of my colleagues, 
Chairman Corker and Senator Durbin, Flake as a cosponsor. I 
think access to clean water and sanitation is one of those sort 
of foundational concerns like access to electricity. Just tell 
me, if you would, how USAID will seek to improve access to 
clean drinking water and sanitation in the developing world 
under your tenure if you become the Administrator.
    Ms. Smith. Senator, let me just echo your endorsement of 
MCC. I have enjoyed working with MCC and look forward to 
continuing to do so in a new capacity, if I am confirmed.
    On the issue of water and sanitation, that is really one of 
USAID's strengths, whether it is in the development field or if 
you look at emergency responses around the world. The Agency is 
terrific at moving quickly and also on a long-term 
developmental footing.
    My understanding is the Agency has been working on a much 
broader strategy and identified priority countries where our 
experts believe that USAID can have the greatest impact. It is 
something I am very eager to dive into further, including in 
support of the act. So I think it is something that I would 
like to come back to you on. I cannot claim to have exhaustive 
knowledge of it yet, but as I say, it is something the agency 
does very well. And my understanding is that they have been 
working very hard on plans to look at how it can be expanded 
but also how they can prioritize, again, in key countries where 
they can achieve the greatest impact.
    Senator Coons. Well, if I could simply, while Senator 
Perdue settles in, let me just say in closing that on my trip 
to Liberia last December, I was really impressed with the DART 
team and with how USAID was not just delivering disaster 
relief, humanitarian relief, but helping coordinate across 
international and private sector and volunteer organizations 
and how the incident management system that really was, in 
large part, deployed through the DART team made a lasting and 
compounding difference in how a complex, broad humanitarian 
crisis was being dealt with. And I just wanted to commend the 
great work that USAID has done and I believe will continue to 
do under your leadership in responding to complex humanitarian 
crises.
    Ms. Smith. Thank you for that, Senator.
    Senator Coons. Thank you, Mr. Chairman.
    The Chairman. Thank you.
    Senator Perdue.
    Senator Perdue. Thank you, Mr. Chairman.
    Ms. Smith, good to see you again.
    Ms. Smith. Good to see you.
    Senator Perdue. Well, thank you very much for your career 
service. And I find this role of USAID Administrator, as we 
talked, to be tremendously important. And I was very impressed 
with our conversation. I appreciate your forthrightness and 
candor in our brief time together. I look forward to 
maintaining that open dialogue. I think there is nothing better 
in trying to establish our foreign policy around the world than 
what we do with our philanthropy, and I know you share that as 
well. You said that in our meeting.
    In our fiscal environment, obviously, we want to know that 
every dollar is--we are getting the most productive use out of 
that that we can. I know you share that as well.
    Assuming you are confirmed, though, I would love to have 
you talk about it--and I am sorry I missed earlier testimony, 
but I would love for you to talk about your priorities in the 
next 18 months, if confirmed, and talk about are there private 
priority areas that you would see yourself focusing on in 
particularly the first year.
    Ms. Smith. Thank you, Senator. Thanks again for our 
meeting.
    Yes. Let me briefly go through priorities.
    The first is achieving maximum impact in the areas where I 
think we can achieve the greatest scale. And we have talked a 
bit about some of those, Power Africa, Feed the Future, and 
Global Health.
    The second is a set of urgent priorities, including 
expanding the agency's work on democracy, human rights, and 
governance, obviously a critical strategy in Central America, 
and for transition in Afghanistan.
    The third--and Senator Coons just referred to this. I 
believe that USAID is the best in the world in responding to 
crises anywhere. They are flexible. They are adaptive. They are 
creative. I think we need to make sure that the teams are able 
to keep one step ahead in a world where we are unfortunately 
seeing too many crises.
    The last, but I think in many ways the most important and 
something you and I talked about, is the management operations 
of the agency. We put huge expectations on the men and women 
who serve this agency to operate and manage huge amounts of 
money often in very complex environments. They do an excellent 
job. I think they are committed to being fully responsible with 
taxpayer dollars. I think you will find with me that I will be 
totally and utterly frank with you about what goes well and 
what does not, but as I said to you in our private meeting, I 
will also come to you and ask for help when we need to fix 
things that may not work so well.
    So on the operations and management of the Agency, I think 
USAID does a terrific job of doing assessments on the front 
end, looking at risk mitigation, evaluation and monitoring, and 
responding to oversight. I would like to work with the team--
and it is a very dedicated team--to get out in front and ahead 
of some of these things to see if we can identify problems and 
challenges earlier, but also again to be able to come to you 
and other members of this committee with some options we may 
develop, and ask for your help and partnership in seeing if we 
can work together to make this agency as effective, as 
responsive, as responsible and agile as it needs to be in the 
world we live in.
    Senator Perdue. I look forward to that.
    Another thing I want to follow up on is to have you speak 
to us a little bit about how do we get other partner nations 
around the world to help us in this role. I know they do now, 
but there are more needs than we can meet. And as one country, 
we cannot meet them all. This is not a budget conversation. It 
is really more of a conversation philosophically. From your 
role as the leading, I guess, contributor in this effort around 
the world, how would you use this position to help influence 
other countries to step up their support of philanthropy the 
way we are?
    Ms. Smith. First of all, I am not shy about asking for 
money.
    But, Senator, I think there are a couple things. And one 
great example of this has been the work on food security and 
agriculture where agencies and departments, including USAID, 
including the State Department--all of us rallied together to 
look at what the world was investing in agriculture, looking at 
what we could do, and then literally going country to country 
and saying here is what we expect you to put on the table. And 
we challenged other countries to triple their investments. We 
were polite, we were evidence-based, and we were relentless. 
Ultimately we mobilized $33 billion.
    Now, I think we can do that as a matter of practice. I 
think part of it is, again, challenging countries, looking at 
the evidence of where the investments are lacking, figuring out 
what is appropriate, and pushing politely until we get there. I 
think our convening power helps us enormously as does our 
success. Again, with Power Africa, the fact that Sweden 
announced last summer $1 billion in support of this enterprise 
is because it is a good idea and it is working. So I think the 
power of our example works.
    The last thing I would like to mention, Senator--and I 
think this is a trend we should build on--is that in a number 
of countries, we are seeing the important recognition by 
governments that something called domestic resource 
mobilization is key, that it is critical that they invest more 
in health, in education, in agriculture, and rely more on their 
own budgets. Now, some of that means that they need assistance 
in things like how to manage an effective tax administration. I 
think we need to capitalize on this trend, build on it where we 
have got countries that are stepping up and being real leaders 
on it, and then using that to challenge other countries to meet 
us at least part way. So I think that is another way that we 
can mobilize additional resources.
    Senator Perdue. Thank you.
    If confirmed as Administrator, what would you do to ensure 
the priorities identified at the mission level are incorporated 
into final budget submissions to Congress and that presidential 
initiatives, while important, do not distort necessarily--I 
know they are important and they need to be taken into 
consideration, but they do not distort the type of assistance 
that you as the Administrator determine to be of utmost 
importance. I guess what I am looking for is the priorities in 
making sure that we all agree on those priorities with regard 
to meeting the needs that USAID is charged to do.
    Ms. Smith. Thank you for that question. And, Senator, I 
will not fool you. This is not easy. There are huge demands. 
There are huge opportunities, and it always is ultimately a 
question of tradeoffs and prioritization.
    So I think the first thing is to look carefully at what the 
Agency's priorities are, to lean in the direction of those 
places we are getting the greatest impact and meeting the 
greatest need. Again, that is not easy because it means letting 
some things go. I am prepared to do that if that is what, 
again, the people in the Agency and others agree with, but I 
think that is something we have to look at.
    The other is I think listening to the field. We send teams 
out in the field to run USAID missions. They have got eyes and 
ears on the ground. They have got a sense and the experience to 
know what is working and what is not and where we can have real 
impact. So I think factoring that in at the end of the day is 
important.
    And finally, I think we have got to continue to leverage 
and draw in other resources because, as you said yourself--and 
I strongly agree--we cannot do everything. I think something we 
can do more of is mobilize, quite frankly, other people's 
resources to match our own.
    Senator Perdue. Well, thank you for your testimony.
    Mr. Chairman, thank you.
    Ms. Smith. Thank you, Senator.
    The Chairman. Senator Murphy.
    Senator Murphy. Thank you very much, Mr. Chairman.
    Welcome. I look forward to working with you in your new 
position. You have done very well today. Thank you for taking 
the time to meet with all of us.
    I am glad to hear in response to a question from Senator 
Perdue, you are not shy about asking for money because I wanted 
to ask you a question about resources.
    Interestingly, you skirted the issue a little bit in 
response to a question from Senator Menendez. You said 
resources are important, but let me tell you all the ways that 
we can get around needing more resources. And it speaks to a 
fear that I at least have about the aid community.
    I mean, the Defense Department is never shy about coming up 
to Capitol Hill and telling us when they do not have the 
resources to meet their operational demands, and they tell us 
routinely the risk at which we are putting the Nation if we do 
not fund the Department of Defense's budget to the amount that 
meets their defined objectives overseas.
    I do not always feel the same way about the aid community, 
and often it is just a question of how we allocate scarce 
resources and how we draw on other partners. And all of that is 
important.
    But does USAID have the resources today to meet its 
operational demands? How much of this can continue to be just 
robbing Peter to pay Paul? Do we not have to have a pretty 
fundamental conversation about the growing number of crises 
across the world and the fact that today we are spending 1.1 
percent of our GDP on foreign aid, when back in the 1950s we 
were spending 3 percent of our GDP on foreign aid? At some 
point we have got to reckon with that number. Right?
    Ms. Smith. Senator, I welcome your comments, and I think 
absolutely that we do. I think, if confirmed, I will also 
function as a member of the administration that is responsible 
for putting together an entire budget and take those factors 
into account.
    But I think there is something key that you are getting to. 
I think we are in a position now to make the case certainly to 
the American people. I have been encouraged by the 
conversations I have had with members of this committee that 
foreign aid is a worthy investment, that we get a return, that 
it impacts our influence and our standing around the world, and 
that we can prevent more crises than those to which we have to 
respond. So I think it would be a wonderful thing to start 
making the case that this a worthy investment and one that we 
should consider over time increasing. I would be delighted to 
work with you on that.
    I do also want to say--and I certainly was not attempting 
to skirt something, but I also believe that assistance is one 
of the tools we have, but it is not the only one. The Agency 
has done a phenomenal job at a time when ideally it would have 
a much bigger budget, of figuring out, again, how do you 
mobilize other people's resources, how do you work with the NGO 
community, which has made huge commitments of its own, and how 
do we, again, leverage what is now billions of dollars in 
private capital. So I think regardless of where the budget is, 
that is something that we have got to focus on.
    You did mention the word ``operational,'' so I just want to 
make one quick plug of something that, if confirmed, I hope 
that we can discuss, and that is USAID's operating budget, 
which is also one of the key elements of its ability to 
function around the world and is absolutely critical. I would 
want to rely more fulsomely on the experts in the Agency to 
come back to you on that. But that is one of the, if you will, 
force multipliers to the effectiveness of the Agency over time.
    Senator Murphy. One of the issues that we talked about, 
which I would love to hear your thoughts on in open committee, 
is the issue of flexibility. One of the things that I routinely 
hear from mid-level and upper-level operators in the field is 
that partially by internal processes, partially by 
congressionally directed earmarks, that we compartmentalize 
funding on a geographical basis and then on an operational 
basis, a categorical basis such that it is hard to move money 
as fast as the crises move our attention.
    Are there things that can be done internally? Are there 
things that we need to work with you on to make sure that you 
have the flexibility to move money as quickly as events on the 
ground demand it?
    Ms. Smith. Senator, that is an issue I would love to come 
back to you on, if confirmed. I think it is vital.
    USAID has a lot of people who are masters of figuring out 
how you move between the various pieces to move money as 
quickly as possible, but also respond to requirements that the 
Agency is obligated to and wishes to respond to, whether they 
come from the legislative or executive branch. I think if we 
could talk about how to provide the Agency with greater 
flexibility, that would be of enormous value. I think part of 
that equation is also working with you on how USAID can ensure 
that it will be fully responsible with that greater 
flexibility.
    I have known this agency for a long time. I have watched it 
go through a lot of permutations. I think it is better 
positioned today than at any time I have seen in 20 years to 
assume the responsibility for and act on that greater 
flexibility. And if that is a conversation that we could have, 
if I am confirmed, I would be delighted.
    Senator Murphy. And then lastly, I just wanted to get your 
thoughts about the way in which USAID can be built more tightly 
into the overall national security infrastructure. There is a 
really fascinating report that one of your former colleagues, 
Gen. Jim Jones, headed. It had about a half a dozen former 
generals and admirals, as well as a number of policy-thinkers, 
talking about the better ways to integrate both State 
Department resources and USAID resources into the strategic 
commands to make sure that we have a more coherent conversation 
happening out in the field so that we can have a coordinated 
response to crises.
    I think about the movement of an organization like al-
Shabaab out of Somalia into Kenya. If we had been able to all 
think about the ways ahead of time to try to buttress those 
sections of Kenya which were vulnerable to the movement of al 
Shabaab, we might have been able to prevent a little bit more 
of the seepage that ended up happening.
    Are there some opportunities to try to connect strategic 
commands and USAID? They are some of your biggest boosters, 
frankly, and there seems to be a need to maybe have a little 
bit more coherence in the field.
    Ms. Smith. Well, I think that is a very good point. And the 
Department of Defense has been a big champion of USAID largely 
for the reasons you suggest. USAID is the agency best 
positioned to pursue the prevention that is needed so we have 
fewer crises.
    I think USAID and the Department of Defense have a very 
good relationship. It is one that has expanded including 
because of joint responses in humanitarian crises. I know that 
on the Sahel and other parts of the world, the two agencies 
have together looked at roles and responsibilities but also how 
to think about what might be done on the side of prevention. 
And I think that is something I am very interested in pursuing 
further.
    Senator Murphy. Thank you, Mr. Chairman.
    The Chairman. Senator Markey.
    Senator Markey. Thank you, Mr. Chairman, very much.
    Can you give us the 1 minute on geothermal in Ethiopia?
    Ms. Smith. Sure. Thank you, Senator.
    Geothermal in Ethiopia has a huge potential. All along the 
Rift Valley, as you and I discussed, there is the potential to 
provide electricity for a huge chunk of the continent. It is 
not easy to exploit, but we are finding that there is increased 
interest. Power Africa is behind transactions in Kenya and in 
Ethiopia that we hope to see significant progress on, including 
in the coming weeks. I think it is something that could be a 
profound game-changer for the region again.
    Senator Markey. We were told by the President of Liberia, a 
country of 6.5 million people, that her whole country only has 
40 megawatts of electricity.
    Ms. Smith. Exactly.
    Senator Markey. What can one geothermal facility in 
Ethiopia do?
    Ms. Smith. You could go from 500 to 1,000 megawatts.
    Senator Markey. A thousand megawatts.
    Ms. Smith. Potentially. There are lots of megawatts in that 
geothermal rift there along the valley, sir.
    Senator Markey. Right. So ultimately we are looking at 
something that is potentially 25 times bigger--one plant, one 
facility--than all of the electricity in Liberia today.
    Ms. Smith. But we are looking at some serious impacts. And 
again, I think we have got to be mindful of the challenges in 
exploitation of geothermal. But I think we are seeing 
increasing evidence of its potential, of the interest by 
investors, and of the viability of some of these projects. We 
still have to focus on the Liberias that do not have that 
potential and have the kind of acute shortages you talk about, 
particularly at a time when, after having survived decades of 
war and now an Ebola epidemic, they are able, fortunately, to 
focus again with our Power Africa team on turning the lights on 
there.
    Senator Markey. The numbers are just so exponentially 
larger that they just match up with the cell phone wireless 
revolution in Africa. I mean, it is almost like a perfect 
analogy of how we are not talking about a doubling or a 
tripling. We are talking about something with one facility in 
Ethiopia that is 50 times bigger than everything that is going 
on in Liberia. So that is something that we just, again, 
continually have to focus on and understand that it is 
transformational. When a place has all the telecommunications 
they need and all of the electricity they need, capitalism, 
commercial activity is going to flourish and similarly the 
education of the kids, the health of the kids, all the way down 
the line.
    Let us talk about health systems post-Liberia. What can 
USAID do to make sure that there is a better infrastructure in 
place on an ongoing basis in these countries so that they can 
be the front line and effective in making sure that these 
diseases just do not spike out of control?
    Ms. Smith. That is a really important question, Senator, 
and thank you for asking it. Senator Coons mentioned the DART 
team deployed, and even from the initial deployment of that 
disaster assistance response team, looking at the health 
systems has been a priority, building on some significant 
progress made over the years, but obviously insufficient 
progress given the impact that the Ebola epidemic has had. I 
think there are several things that can be done.
    One is transferring some of the capabilities that have been 
developed in Liberia out of misfortune to other places and 
making sure those are retained. There are now people who are 
trained as lab technicians to track the data on an epidemic, to 
do some of the treatment and prevention.
    The second is part of something called the Global Health 
Security Agenda, which was launched by the President with an 
eye to doing two things, both getting countries to adhere to 
the norms and standards that are required to manage global 
health threats, but also and importantly build the capacity of 
countries like Liberia to be able to prevent, detect, and 
respond to global health threats.
    Lastly, I think for USAID, for the Office of the Global 
AIDS Coordinator for the CDC, and for all the U.S. Government 
agencies that work in health, there have been some important 
lessons. I think about the importance of health system 
strengthening. This has been a priority since the beginning of 
the administration. I will admit it has not been the easiest 
thing to market. Health system strengthening really did not 
capture a lot of imagination I think until we saw the Ebola 
epidemic. But the teams are working now on how we can do as 
much as possible----
    Senator Markey. Can you take tuberculosis as an example----
    Ms. Smith. Yes.
    Senator Markey [continuing]. And talk about what USAID can 
do in terms of detection and prevention of tuberculosis in the 
countries that you have an ability to influence? Can you talk 
about that a little bit?
    Ms. Smith. I think many of these are the same systems. And 
what is needed and I think what USAID does very well across the 
board on health is how do you have the education in place, 
train the people who you need on the ground, provide the 
education, and then put in the extra training and capabilities 
that are needed for diagnostics, for treatment, in TB for 
sustaining treatment because one of the biggest challenges 
there is that if people fall off their treatment, you have got 
a recurrence or even worse. So I think, again, it all comes 
back to health systems, to training, and to putting in place 
those things that enable local communities to play a central 
role.
    And one last thing on tuberculosis, if I may. It also means 
mobilizing other countries to do more because if you look at 
where the evidence of tuberculosis is today, much of it is in 
the world's poorest countries. A great deal of it is in the 
BRICS. And so I think the other piece is going back and 
pressing other countries to do more.
    Senator Markey. And finally, USAID has partnered with MIT 
in working on a comprehensive initiative on technology 
evaluation in order to ensure that we are using the smartest 
technologies effectively in order to aid in development in 
these countries. Can you talk a little bit about that and how 
we can continue to advance that effort to maximize working 
smarter, not harder to extract all of the economic 
opportunities in these countries?
    Ms. Smith. Senator, I am not familiar with that particular 
project. I am familiar with the extraordinary work that has 
been done by--if I am confirmed--my predecessor.
    Senator Markey. You have my vote.
    Ms. Smith. Thank you, sir.
    Dr. Shah is a real expert in science and technology and did 
a great deal to create, as you know, the Global Development 
Lab.
    I think the partnerships with universities are key. Those 
are already yielding significant results. I think how to use 
data more effectively both in running the organization but also 
in terms of tracking solutions and what is working and what is 
not.
    The Grand Challenges that USAID has run have been some of 
their greatest successes. My personal favorite is one that was 
to develop a set of protective gear for people who are working 
in environments like Ebola epidemics where they can work for 
longer periods than 45 minutes. It was Johns Hopkins and a 
wedding dressmaker in Maryland that came up with the solution 
on that.
    I think there is enormous potential out of what has been 
done to bring science, technology, and innovation into USAID. I 
think the challenge is to look at how we can get some of these 
things to scale.
    Senator Markey. I think your whole life has prepared you to 
sit in that chair, and I think our country and the world is 
lucky to have you being willing to take on this job. So thank 
you so much.
    Ms. Smith. Thank you, Senator.
    The Chairman. I am sure that Senator Markey knows that his 
whole life has prepared him to sit in his chair. [Laughter.]
    So with that, Senator Cardin I know has some additional 
questions.
    Senator Cardin. If I could return to a point I raised 
earlier from the hearing we had yesterday in the East Asia and 
The Pacific Committee dealing with capacity-building and using 
USAID programs as they are related to capacity-building for 
trade, I want to talk a little bit about labor capacity issues 
and how you see the tools you have available being used to 
maintain and expand those opportunities.
    If we move forward--and I hope we do--with the agreement 
with the Trans-Pacific Partnership, there are several countries 
there that have significant challenges as relating to their 
capacity to comply with a quality trade agreement such as TPP, 
particularly on labor issues. How do you see your 
aggressiveness in using the labor capacity tools that are 
available to help us meet these needs?
    Ms. Smith. Senator, this is something I have talked to 
USAID about. USAID has a long history of working with labor 
organizations to build up to both norms and standards and build 
capacity. I think there is every intention of continuing those 
programs. If it is possible to expand those, I think that is 
worth looking at. But this is something I think the Agency has 
got a long track record of working on around the world and in 
Asia, and I certainly think in the Asia-Pacific that is a place 
where, if confirmed, we would certainly want to continue to do 
that.
    I would be happy to talk to you further and get your 
thoughts and more details on any specific ideas you may have.
    Senator Cardin. Well, I appreciate your commitment on this. 
I think it is going to require the agency's initiatives in some 
of these areas, and I look forward to working with you in that 
regard.
    Ms. Smith. That would be great.
    Senator Cardin. There has been some conversation about the 
use of the Global Development Lab. I mentioned it and Senator 
Coons mentioned it. Do you have thoughts as to how that program 
could be strengthened so that we can leverage the program for 
stronger involvement from the private sector in helping achieve 
the missions of USAID?
    Ms. Smith. Sure. I think the partnerships that the Global 
Development Lab has already built are part of what is going to 
anchor it and allow it to succeed. One of those is, again, with 
universities around the country, and also with the private 
sector. I think there is some real potential in looking at how 
we can take some of these innovations to scale. There is the 
capacity within USAID to provide some initial small capital to 
entrepreneurs, for example, or to ideas that seem to be viable 
enough to work. I think part of the challenge will be then 
getting with the private sector to figure out how we can take 
some of these things to market. And that is something I would 
very much like to do. I will rely on its experts, if confirmed, 
to determine what the best examples might be.
    But I genuinely believe that this kind of lab, that kind of 
innovation, those kind of entrepreneurs or the ideas that have 
come out of grand challenges--that if we use our convening 
power, the relationships that the Global Development Lab 
already has to work with the private sector to take these 
solutions to market--we will not only innovate, but do 
something the lab was built for and that is to get to scale.
    Senator Cardin. I think it is excellent. I would also urge 
you to put a bigger spotlight on what you are doing. I think 
this is a story that is not well understood yet, particularly 
in our country. So I think you should. This is a success, and 
you should really put a spotlight on it.
    One last point. Senator Corker and I have had many 
conversations about moving the President's nominees through our 
committee in an efficient way. And today's hearing is an 
indication of us moving forward on nominations.
    It is my understanding that there are several senior 
positions in USAID that require Senate confirmations where 
nominations have not been yet submitted to the United States 
Senate, including the top position in Africa and some others. 
If you are confirmed, can we have your commitment that you will 
do everything you can to make sure that we get these 
appointments in a timely way? It is frustrating for many of us 
who are pushing to say we need to confirm positions when the 
administration has not submitted their nominees.
    Ms. Smith. Yes. I will happily make you that commitment, 
sir.
    Senator Cardin. Thank you.
    The Chairman. I am glad to see that he is pushing in two 
directions, not just one. [Laughter.]
    Senator Perdue.
    Senator Perdue. Thank you, Mr. Chairman. I do have one last 
question.
    Ms. Smith, with your operational background, I cannot 
resist this and I ran out of time earlier. But Senator Murphy 
reminded me just how important it is that we set priorities. We 
mentioned that we are only spending about 1 percent of our 
budget as opposed to maybe 3 percent in the past. I want to 
look at that. I am not knowledgeable about the 3 percent.
    But I do look at the last 6 years where we have spent $21 
trillion in our Government. We borrowed $8 trillion of that. 
That means of the $20 billion, which I believe is in 2015's 
budget for USAID--and put that in perspective. The State 
Department is $51 billion. So this is $20 billion of the $51 
million. That means that we borrowed $8 billion in order to 
meet needs around the world.
    And this goes back to my question about how do we get other 
players to step up and how can we leverage what we are doing. 
But the reality is right now we are borrowing 40 percent of 
what we are using to support philanthropy around the world. I 
do not know any other country in history that has ever done 
that.
    And so the question I have that comes behind that is, 
operationally how do you look at the priorities? Right now, 
five efforts, as I understand it--and I would love to be 
corrected, but I think this is right. Five programs represent 
90 percent of that $20 billion. Health, humanitarian needs--
health is the third. Humanitarian needs is about 20 percent. 
Democracy and governance is 13 percent. So those three things 
are about two-thirds of the money we are spending, or about $13 
trillion. Economic growth and agriculture are only about 20 
percent, a little more than 20, about 23 percent.
    So the question is--you do not have to answer today because 
you have not had a chance to get into the budget and all that. 
But one of the things I would look forward to is an active 
conversation about what you see the allocation needing to be 
relative to the needs that are out there, the objectives and 
the mission of USAID, given that 40 percent of what we are 
funding is borrowed. I mean, that puts a perspective on it I 
think that makes--it just puts every dollar in play relative to 
how important it is that we make every dollar count. So would 
you respond to that please?
    Ms. Smith. I will. I also took note of your saying that you 
would be happy to talk to me about this later when I have had a 
chance to review the budget in great detail.
    I think this issue of prioritization is key. And again, I 
do not want to understate how difficult it is. USAID has a lot 
of important initiatives and programs.
    What I would really like to do is sit down with the men and 
women who run these programs both here in Washington and in the 
field, get their honest assessment of what they think is the 
most effective, what they think should be prioritized, how they 
think about that, be able to work that through with the 
agencies, with others in administration who have views on this, 
and come back to you and talk it through.
    Senator Perdue. That is acceptable. Thank you.
    The Chairman. Thank you.
    If there are no other questions--do you have any, Senator 
Markey? You are good? I just have a couple and we will close.
    Ms. Smith. Sure.
    The Chairman. Again, thank you for your testimony and your 
willingness to serve in this capacity.
    I was interested in your exchange with Senator Markey and 
just the order of magnitude change that can take place when we 
have power production of that magnitude in a country with so 
little. And we have so many countries in Africa that have that 
kind of situation. Sometimes administrations on both sides of 
the aisle try to tout the amount of output that is created, but 
as you know--and we talked about this in the office--what is 
important is to ensure you have a distribution system, and you 
have that power, and you have a cost recovery mechanism or a 
tariff system in place so that it can be sustained for the long 
haul and will be there. So many of us have seen--I know you 
have seen--projects that were completed but they serve no 
purpose.
    I wonder if you could just talk a little bit about that?
    Ms. Smith. Yes. I think there a couple of issues there, 
Senator. And thank you for the question.
    One of the things that Power Africa also focuses on is some 
of the policy issues, which are key to sustainability. So I 
think that is vital.
    I also think that something, if confirmed, we can do more 
of and a better job of is looking at that sustainability up 
front and making sure that the policies are in place, figuring 
out things like recurrent expenditures that sometimes are not 
factored in are factored in so that we know that we are not 
investing in something that 5, 10, 15 years later is going to 
prove to be dormant or ineffective. So I think that is 
critically important. It is something that is a priority of 
mine.
    With respect to Power Africa in particular, one of the 
great things about having not only USAID but all of these other 
departments and agencies involved is that it is a real 
opportunity to get to the policy issues that are necessary 
alongside those very exciting investments to make sure that 
these are sustainable over time, and that the investments 
include all of the other cost recovery and pieces that you 
mentioned.
    The Chairman. While you were at the NSC, you praised the 
administration's transparency efforts. And we noticed that with 
the foreign assistance website, we still are not getting full 
reporting from all Federal agencies relative to that. And while 
I am sure our friends in China have access to that data, I 
wonder if you would----
    [Laughter.]
    The Chairman [continuing]. If you would commit to going 
ahead and bringing that up to a full-scale basis and make sure 
that all of that reporting is taking place?
    Ms. Smith. Sure. Senator, I will continue to work on that. 
And I will confess to you that several colleagues and I made a 
priority of really looking at foreign aid transparency. I think 
in all honesty, we were not fully aware of what we were getting 
into when you look at the complexity of the full range of 
departments and agencies that provide foreign aid and their 
different systems and how one translates all of that 
information. That is a work in progress. It is something I will 
certainly lend my support to and continue to work on. And I 
appreciate your support for it because I think it is absolutely 
vital.
    The Chairman. Well, thank you for being here today. I 
appreciate the time you took with committee members in advance.
    Without objection, if the record could remain open until 
close of business Friday and if you would respond to those 
questions, we would appreciate it.
    Ms. Smith. Yes, sir.
    The Chairman. And without further ado, the meeting is 
adjourned.
    [Whereupon, at 3:23 p.m., the hearing was adjourned.]

                              ----------                              


              Additional Material Submitted for the Record


 Responses of Gayle Smith, Nominated to be Administrator of the United 
States Agency for International Development, to Questions from Members 
                            of the Committee

               administrator-designate smith's responses 
                    to questions from senator corker
Water, sanitation, and hygiene
    Question. The 2012 U.S. National Intelligence Estimate (NIE) 
determined that a lack of access to clean water in the developing world 
will increase the risk of state failure and global instability over the 
next decade, which in turn will pose strategic issues for the United 
States. In light of the recent passage of the Water for the World Act 
and its emphasis on prioritizing help for the most in need, what 
efforts would you undertake to ensure water and sanitation funding is 
not used as a strategic bargaining chip but that appropriate 
prioritization takes place as required by law, increasing access to 
clean drinking water and sanitation where it's needed most, as part of 
a global strategy to engender goodwill toward the United States and 
reduce the risk of global instability?

    Answer. Thank you for your leadership on this issue, including your 
sponsorship of the Senator Paul Simon Water for the World Act, which I 
was pleased to see signed into law.
    It is my understanding that the act aligns with USAID's 2013 Water 
and Development Strategy, in that both prioritize USAID's water 
investments based on (1) country needs (targeting countries with the 
least access to safe drinking water, improved sanitation and hygiene, 
and highest rates of death of children under 5 due to diarrheal 
diseases); and (2) opportunities (focusing on countries with host-
government commitment to supporting water, sanitation, and hygiene).
    As you may know, the majority of USAID's priority WASH countries 
and the majority of the Agency's WASH funding can be found in sub-
Saharan Africa, a region that has historically suffered from the lowest 
rates of access to safe drinking water and sanitation in the world.
    The country prioritization and funding trends both demonstrate 
USAID's commitment to supporting the water needs of the very poor, and 
providing a foundation for sound governance of water resources that 
helps contribute to stability in priority countries.
    If confirmed, I will focus on sustainably expanding access to safe 
water, sanitation, and hygiene to the neediest countries in an 
increasingly water scarce world and look forward to consulting with the 
Congress and relevant stakeholders to ensure we are meeting the intent 
of the Water for the World Act.
Freedom promotion
    Question. Where do you see democracy and liberty promotion fitting 
into the agenda of USAID?

   a. What percentage of USAID funds and staff time should be 
        spent on democracy and liberty promotion?
   b. How does that compare to the current allocation of staff 
        time and funds for democracy and liberty promotion?

    Answer. Democracy promotion is central to development, and an 
integral part of the U.S. national security strategy. This is 
highlighted in the President's two published strategies as well as in 
the two Quadrennial Diplomacy and Development Reviews issued by the 
State Department and USAID. Within USAID, a new strategy on democracy, 
human rights, and governance (DRG) frames the importance of an 
integrated approach to programming within the sector, and equally on a 
holistic approach between this sector and the economic and social 
sectors. If confirmed, I intend to make democracy promotion a top 
priority.
    As stated during my testimony, to advance implementation of the new 
DRG strategy, if confirmed, I will support a greater presence of DRG 
officers in the field. Democracy officers are on the front lines each 
day, convening and networking civil society organizations, finding 
innovative ways to promote human rights, and working to ensure our 
programs in health, food security, climate change, and economic growth 
incorporate elements of citizen participation and government 
accountability.
    With respect to USAID managed and comanaged accounts, the 
President's FY 2016 request includes a substantial increase in 
democracy funding when compared to the FY 2015 request. If confirmed, I 
look forward to reviewing funding and staffing levels and working with 
Congress to ensure appropriate resources are available for this 
critical area.

    Question. As space for civil society continues to shrink globally, 
how will you put President Obama's ``Stand with Civil Society'' 
initiative into action?

    Answer. USAID has been a key player in the President's Stand with 
Civil Society agenda, a global call to action to support, defend, and 
sustain civil society amid a rising tide of restrictions on its 
operations globally. As a result of Stand with Civil Society, USAID has 
augmented programs that strengthen legal and regulatory environments 
for civil society; held numerous consultations all over the world with 
civil society; and made bold calls to strengthen regional coalitions, 
improve donor coordination and promote innovative partnerships, and 
engage local governments to collaborate with civil society to solve 
community problems.
    USAID is also exploring innovative ways to support civil society. 
For example, in partnership with the Government of Sweden and private 
philanthropy, the Agency is supporting an effort to connect civil 
society across the globe through the Civil Society Innovation 
Initiative. Through a constructive, cocreation process with civil 
society, USAID and its partners will work together with local and 
regional CSOs to design up to six regional Hubs that will be connected 
at the global level. These regional Hubs, intended to add value to and 
augment existing support to civil society, will encourage cooperation, 
innovation, research, learning, and peer-to-peer exchanges. They will 
feature virtual and physical components that can aggregate existing 
tools and resources, including on leadership capacity and regionally 
based resource mobilization, as well as serve as a support platform for 
civic activists that could provide on-demand legal aid.
    These are the types of activities I will continue to support to 
ensure that USAID is supporting the U.S. Government's efforts to 
respond to the backlash on democratic principles occurring around the 
world.
Program impact
    Question. U.S. assistance has had many successes, but too often 
USAID is focused on dollars spent, rather than impact. If confirmed, 
how will you push USAID to be focused on development outcomes?

    Answer. In order to maximize the impact of every development 
dollar, and as part of the USAID Forward reform agenda, USAID has 
introduced new operational policies related to strategic planning, 
program design, and monitoring and evaluation. As you know, this suite 
of reforms was designed to increase the Agency's strategic focus and 
development impact by ensuring that programs are designed to respond to 
local contexts, and that USAID learns from experience and adapts 
programs accordingly for better development outcomes.
    USAID's Evaluation Policy, released in 2011, is one of the key 
operational policies that is bringing new methodologies for measuring 
impact to the design and evaluation of development activities. Since 
2011, over 950 evaluations, and expanded training in evaluation for 
over 1,400 USAID staff, have bolstered active management by missions 
and operating units in evidence-based decisionmaking.
    USAID has strengthened its ability to plan and implement 
strategically, to monitor and evaluate impact, and continuously feed 
what is learned back into planning and implementation processes to 
improve outcomes. Another operational reform that has strengthened 
strategic planning for improved outcomes is the use of Country 
Development Cooperation Strategies (CDCS) to ensure analysis of changes 
in country situations and status in the medium term, and support 
evaluations and interim Agencywide assessments to inform decisions 
about adjustments in resource allocations. If confirmed as 
Administrator, I will work to further institutionalize these reforms 
across the Agency.

    Question. What are your thoughts on innovative pay-for-performance 
contracts, such as Cash-on-Delivery Aid, where U.S. taxpayers would 
only be footing the bills for measurable achievements?

    Answer. I understand that USAID is committed to utilizing the most 
effective and efficient means for incentivizing, attaining, and 
sustaining development results.
    Examples include:
    (A) Acquisition and Assistance: For acquisition (contracts), USAID 
has several options to incentivize contractors by tying payment to 
performance, including cost plus award fee, fixed price award fee, cost 
plus incentives fee, and fixed price incentive fee contracts. For 
assistance (grants and cooperative agreements), a fixed amount award, 
which was previously referred to by USAID as a fixed obligation grant, 
is the main pay-for-performance mechanism. I understand that USAID 
strives to use these mechanisms when appropriate.
    (B) Government-to-Government (G2G) Assistance: Most of USAID 
assistance to local governments is ``projectized'' which means that the 
Agency's funding is for a specific project, not simply budget support, 
and financed via either cost reimbursement, fixed amount reimbursement, 
or resource transfers (i.e., cash transfers in a few select countries).
    If confirmed, I would be interested in looking at other innovative 
pay-for-performance approaches, including Cash on Delivery.
    If confirmed, I am committed to achieving results that sustain in 
the most efficient and effective way. However, in pursuing this results 
focus, I also want to ensure that the approaches we use do not 
undermine or distort current systems such that the countries on their 
own are not able to sustain this assistance.
Africa
    Question. At a time when China and other countries are making huge 
inroads into Africa, often displacing American influence, how would you 
advance American interests in this competitive environment?

    Answer. I believe America can continue to assert influence as a 
global leader in Africa, even as sub-Saharan Africa attracts 
significant investment from China and many other countries. At the 
U.S.-Africa Leader's Summit (ALS) President Obama told the largest 
gathering of African leaders ever held in Washington, ``We don't look 
to Africa simply for its natural resources. We recognize Africa for its 
greatest resource which is its people and its talents and its 
potential.'' The United States relationship with Africa is about much 
more than extracting minerals from the ground for our growth. The 
United States seeks to build partnerships that create jobs and 
opportunity for all our peoples, and unleash the next era of African 
growth. The U.S approach provides a mix of investments in Africa 
representing a comprehensive American agenda that promotes influence in 
the forms of democracy, individual liberties and respect for the rule 
of law as well as soft power influence where we have a significant 
undisputed edge in working with African governments.
    USAID can demonstrate leadership and advance American interests in 
Africa through development programming that engages and empowers 
Africans. USAID invests heavily in programs that ensure Africans have a 
stake in their own development and continues to engage in Africa on a 
large scale. In its first year, the Power Africa initiative made 
significant progress toward achieving its initial goal of adding 10,000 
megawatts (MWs) and 20 million business and household electrical 
connections in six countries in sub-Saharan Africa. During the ALS, 
President Obama announced a tripling of Power Africa's goals--Power 
Africa partners would work together to add 30,000 MW and 60 million 
connections across all of sub-Saharan Africa. Through Power Africa, 
USAID is coordinating a total of 12 U.S. Government agencies and 
working with over 100 private sector partners, multilateral development 
institutions, bilateral partners, and African governments to increase 
power generation across sub-Saharan Africa. To date, Power Africa has 
helped projects expected to generate over 4,100 megawatts of 
electricity generation capacity reach financial close.
    Through the Feed the Future initiative, USAID is working with 
African governments, the African Union, and the private sector in 
Africa and abroad to address the root causes of hunger, poverty, and 
food crises. U.S. leadership is ensuring that the fight against hunger 
and poverty is a global endeavor. Indeed, our L'Aquila commitment of 
$3.5 billion over 3 years, which the United States met and surpassed, 
spurred other partners to pledge more than $18.5 billion. And the 
United States was instrumental in the development of five key 
principles that were subsequently adopted at the Rome World Summit on 
Food Security in November 2009. Now known as the Rome Principles, they 
constitute the foundation for collective, global action on agricultural 
development and food security. If confirmed, I will ensure that USAID 
continues to show such leadership on the continent through bilateral 
and regional partnerships with African institutions, and through the 
USG's power to convene global responses to African challenges.
    Through the Young African Leaders Initiative (YALI), the U.S. 
Government is empowering a new generation of young Africans to 
contribute to solving challenges in their communities and around the 
world. YALI works in partnership with a robust network of stakeholders 
from across the continent and in the United States to support young 
African leaders as they spur growth and prosperity, strengthen 
democratic governance, and enhance peace and security across Africa. 
This initiative also builds lasting linkages between the United States 
and Africa in government, business and civil society.
    At the same time, since China is the largest single trading partner 
with the African region, it is important that the United States engage 
the Chinese to channel global development resource flows toward more 
transparent, accountable, and transformative development objectives in 
line with our values. Through this engagement, the USG has an 
opportunity to encourage compliance with international standards for 
environmental and social risk assessments. If confirmed, I will work 
with the Department of State on developing a strategic framework for 
enhancing this engagement.
    As outlined in the President Obama's U.S. Strategy toward sub-
Saharan Africa, the United States commitment to Africa is long-standing 
and deep. The United States has invested in development partnerships 
with Africans to foster sustained economic growth, promote food 
security, increase resilience to climate change, and improve the 
capacity of countries and communities to address HIV/AIDS, malaria and 
other health threats. This is the foundation of a continuing strong 
relationship between the U.S. and African nations.
Yemen
    Question. Earlier this year, USAID suspended its conflict 
resolution programming in Yemen due to an escalation of conflict. What 
are your views of the proper role for USAID in Yemen and how USAID 
might be able to restart these important programs?

    Answer. As you know, USAID supports local, civilian-led conflict 
mitigation programs and efforts to foster dialogue throughout many 
countries worldwide. Yemen currently faces a humanitarian crisis, with 
conditions deteriorating rapidly, and USAID is focused on addressing 
this crisis through its continued life-saving humanitarian assistance. 
Since FY 2014, the Agency has provided $158 million in humanitarian 
assistance to conflict-affected and vulnerable populations in Yemen. 
USAID works through trusted humanitarian partners that are seasoned 
professionals with many decades of experience working in conflict zones 
and difficult operating environments, such as Somalia and Afghanistan.
    In light of the extremely difficult security and operational 
situation in Yemen, some USAID programs, including social and economic 
development programs, have been suspended. The safety and security of 
USAID implementing partners, beneficiaries, and local staff in Yemen is 
USAID's first priority and the Agency does not want to put them at risk 
unnecessarily. I understand that USAID has worked diligently to ensure 
that this suspension will allow the Agency to keep programs in place so 
that it can quickly restart activities--including conflict management 
and mitigation activities--at any point when the situation is 
permissive, civil society partners can meet in a safe environment, and 
USAID can ensure sufficient program oversight.
Risk assessments missing in program planning
    Question. While USAID has increased its partnerships with local 
partners in country-led programming, the Government Accountability 
Office reports risk assessments that are carried out by USAID are many 
times not used during program planning in order to mitigate those 
risks. How would you address this as Administrator?

    Answer. It is my understanding that USAID has addressed the 
concerns raised in the GAO report regarding the alignment of its 
fiduciary risk assessments with its program planning process. If 
confirmed as Administrator, I am committed to creating the conditions 
whereby countries can lead, resource, and sustain their own 
development. To the extent that effective government systems are key to 
sustaining desired results, under my leadership, the Agency will 
continue to invest directly in those systems to improve their function. 
I will ensure that the Agency continues to conduct in-depth fiduciary 
risk assessments at the country level, as well as at the institutional 
level for those organizations in which the Agency is directly 
investing.
    My understanding is that in 2014 USAID revised its internal 
regulations to align its processes for fiduciary risk assessment and 
program planning, and accompanied that revision with a worldwide 
training program. If confirmed, I will work to ensure that USAID staff 
worldwide are familiar with and implementing these regulations so that 
these fiduciary risk assessments are used in program planning in order 
to mitigate such risks.
Grants vs. contracts
    Question. In order to achieve maximum accountability for results, 
efficient use of resources, and the incorporation of lessons learned 
from prior development efforts, what do you think the appropriate 
balance is between contracts, grants, and cooperative agreements in 
acquisitions associated with development?

    Answer. To achieve maximum accountability and results, I believe 
that the appropriate choice of instrument will vary from activity to 
activity. The decision to use a grant, contract, or cooperative 
agreement should be based on a rigorous program design in which 
intended results, efficiencies, and lessons learned are incorporated.
    I understand that USAID has a history of robust use of all three 
mechanisms with assistance instruments such as grants and cooperative 
agreements receiving 60-70 percent of USAID obligations and contracts 
receiving 30-40 percent. I also understand that USAID's official policy 
states that there is no preference for acquisition instruments over 
assistance instruments or vice versa.
    In addition, I believe it is important to ensure that the choice of 
instrument is made in accordance with principles found in the Federal 
Grant and Cooperative Agreement Act.
    Please be assured that if confirmed, I will ensure that results, 
efficiencies, and lessons learned are used in each of these 
implementing mechanisms.

                               __________
               administrator-designate smith's responses 
                    to questions from senator cardin
Country ownership
    Question. Americans are proud that our country is the world's most 
generous provider of assistance to save lives in emergencies and help 
people and countries work their way out of poverty. Over the years this 
assistance has helped other countries achieve some incredible results--
including 1 billion people being lifted out of poverty in this century.

   How do we make sure that our aid is leaving lasting results 
        that countries can build upon, so they can grow their 
        economies, strengthen their institutions and the rule of law, 
        and get to the point where they are eventually funding their 
        needs with their own economic growth?
   What administrative reforms can we expect you to prioritize 
        to ensure that we make sure we are getting the furthest mile on 
        every U.S. taxpayer dollar going overseas--and what can 
        Congress do to alleviate the pressure to burn money too 
        quickly, measure quantitative outputs versus impact, etc.?
   How would you invest to increase the impact of successful 
        efforts like the Local Solutions initiative?

    Answer. USAID is committed to creating the conditions whereby 
countries can lead, resource, and sustain their own development, a 
commitment that I share and will prioritize, if confirmed. I agree that 
country ownership--mutually agreed-upon priorities, direct 
implementation through local systems as the default choice, and 
domestic resourcing by local governments, civil society, and the 
private sector--should be at the core of how USAID does business. My 
understanding is that the Agency is delivering on this commitment 
through the following organizational and programmatic reforms, which I 
will prioritize if confirmed:

   The Agency has put in place policies and a program planning 
        process that enable it to project results over a longer 
        timeframe and align its staffing and resources accordingly.
   USAID is ensuring that its country strategies and project 
        designs prioritize and measure sustainability through country 
        ownership, regardless of the sector. This increasingly entails 
        broad local stakeholder involvement in the Agency's planning 
        processes. It also entails analysis (e.g. political economy 
        analysis) and action (i.e. improved governance) on the 
        constraints to sustainability, all of which may not be fully in 
        the Agency's manageable control.
   The Agency has put in place the appropriate controls to 
        prudently invest directly in local governments, civil society, 
        and bolstering the private sector (as relevant) to ensure that 
        those stakeholders are accountable, effective, and can sustain 
        results on their own.
   USAID has introduced new guidance and methodologies for 
        monitoring and evaluating project performance. USAID programs 
        are closely and actively monitored in-country--including 
        through the use of objective, third-party evaluations--to track 
        results at every level (input, output, outcome) and to make 
        room for midcourse correction when changes are needed. In 
        addition, through the use of rigorous methodologies the Agency 
        is able to evaluate the impact of its programs and the extent 
        to which outcomes can be attributed to USAID interventions.
   The Agency has almost doubled its Foreign Service staffing 
        to increase its ability to engage directly with local 
        governments, civil society, and private sector; negotiate 
        policy reforms; leverage the local private sector; build 
        capacity; innovate; and manage its assistance programs.
   USAID is promoting the mobilization of local resources in 
        countries where it works through tax modernization; 
        coinvestments and guarantees with the local private sector; 
        budding philanthropy; and alternative business models such as 
        social enterprises and social impact investment.
Health workforce
    Question. What is the overarching vision and strategy for helping 
the Ebola-affected countries and other developing country partners to 
build a well-trained, well-equipped and well-supported health workforce 
that can stop threats like Ebola, and at the same time help achieve 
other major priorities like ending preventable child and maternal 
deaths?

    Answer. USAID has worked closely with the national governments of 
the Ebola-affected countries as well as with other U.S. Government 
agencies and bilateral and multilateral donors to develop a health 
country plan for each country, which directly supports national 
strategies and reaches the most vulnerable populations. USAID's 
programs focus on restoring non-Ebola essential primary health services 
delivery while supporting the rehabilitation of health systems, 
including the capacity to prevent, detect, and respond to future 
outbreaks before they become epidemics, in line with our Global Health 
Security Agenda.
    To support service delivery, USAID will focus its efforts on health 
promotion and behavior change and communication at the community level. 
These efforts will help to reduce the fear of returning to health 
clinics and promote primary health services, particularly maternal and 
child health services. Support will also focus on the reopening of 
community health facilities in USAID-targeted communities which follow 
new established standards and norms for infection prevention and 
control, training of health care workers, and ensuring the availability 
of essential health commodities at the facility level. Additional 
support will also be provided for service delivery through existing 
nontraditional, community platforms, such as national health weeks and 
immunization campaigns,which will help to serve as a stop-gap measure 
until community-based facilities are up and running.
    USAID will focus on a variety of activities to improve health 
systems in both the short- and long-term in each country. Priority 
programs will include capacity-building for health care worker training 
programs to better support the recruitment, training, supervision, and 
retention of health care workers at all levels. Support will also be 
provided for curriculum development, training tools and materials, 
helping to develop a professional training track for community health 
care workers, and integration of new health workers recruited and 
trained during the crisis. Significant efforts will also be made to 
support the supply chain management efforts from forecasting and 
procurements to storage and delivery at the community level. Additional 
efforts will be considered to help support the local Ministries of 
Health on governance, health care financing (to help manage the 
additional influx of resources from donors), management and oversight. 
All three affected countries have requested support in setting up an 
infection prevention and control unit within the Ministry of Health to 
ensure the quality control and implementation of standards and norms 
for infection prevention and control implementation throughout all 
clinical settings.
    USAID-supported recovery efforts will build upon systems and 
activities put in place during the emergency response efforts to 
further enhance each country's capacity in detecting, preventing, and 
responding to further outbreaks of Ebola and other infectious disease 
threats.
    These efforts, combined with the efforts of other donors, will 
collectively support the national recovery strategies in each country 
and help to support overall efforts to end preventable maternal and 
child death.
Maternal and child health
    Question. In 2012, the United States led on the Survival Call to 
Action roadmap that identified key barriers that we needed to address 
to bend the curve on ending child deaths and increase child survival 
and health.

   How is the United States moving this agenda forward?
   How can you deepen or expand that commitment or vision?
   How will you ensure that we are working with the highest-
        burden countries and promoting equity for children across the 
        globe to ensure we are reaching all children?

    Answer. Since 2009, the Obama administration has been strategically 
focusing its maternal and child health programs on countries with the 
highest burdens of maternal, newborn, and child deaths and where the 
United States had the opportunity to make a difference in this outcome. 
By focusing on countries and populations with the highest need, U.S. 
programs have helped save millions of lives, contributing to greater 
equity and more inclusive development. In USAID's 24 priority countries 
that account for more than 70 percent of global child and maternal 
deaths, nearly 800,000 more children survived in 2013 than in 2008, 
contributing to a cumulative total 2.4 million lives saved.
    USAID's 2014 report ``Acting on the Call: Ending Preventable Child 
and Maternal Deaths'' outlined an evidence-based plan to accelerate 
progress in USAID priority countries-sharpening field programs, 
realizing efficiencies, and improving accountability to yield the 
greatest number of lives saved, while building systems and partnerships 
to sustain progress. Building on this momentum, USAID appointed a Child 
and Maternal Survival Coordinator in 2015, focused on: (1) continuing 
to sharpen the Agency's work toward Ending Preventable Child and 
Maternal Deaths; (2) intensifying external engagement with Congress and 
partners, advocates, civil society, faith groups, and partner country 
leaders that are critical to progress; and (3) increasing financing for 
EPCMD.
    USAID is working to accelerate its action through a new framework 
to track success, support missions, and ensure that resources are in 
place to sustain the effort. By enhancing existing internal processes 
such as the annual operational plan development, USAID can improve its 
performance and ensure that our investments are focusing on the highest 
priorities. Dashboards have been developed to rigorously measure 
progress at both the outcome level and input level. The dashboards 
facilitate a more organized, coordinated system for tracking, and 
managing progress, and are a supporting tool in a comprehensive 
approach to measuring progress.
    I understand USAID is working to release the second ``Acting on the 
Call'' report in summer 2015, following up on commitments and targets 
set in the 2014 report. Through dashboards and these annual reports, 
USAID is holding itself and its partners accountable for accelerating 
our impact on ending preventable child and maternal deaths.
    Ending Preventable Child and Maternal Deaths cannot be accomplished 
by USAID alone. In 2012, the Governments of Ethiopia, India, and the 
United States, in collaboration with UNICEF, hosted the Call to Action 
to unite the global community around this achievable goal. The same 
partners convened again in 2014 to assess progress and identify 
challenges. This year, the Government of India will host a followup 
global conference in August, cohosted by the Governments of Ethiopia 
and the United States, and UNICEF. Since 2012, 20 governments have 
committed to--and most have developed--national plans to accelerate 
progress, set clear priorities and costs and scorecards to 
systematically track outcomes.
    Since the beginning of the Obama administration, the U.S. 
Government has increased investments in global child and maternal 
survival with the strong, bipartisan support of Congress. Worldwide, 
government health expenditures and donor contributions have seen 
meaningful growth. There still remains a gap in financing needed to 
build on progress to date and bridging that gap will require strategies 
that incorporate domestic resource mobilization, global engagement, 
USAID's Health Financing Framework, and targeted country-specific 
interventions. As countries experience unprecedented economic growth, a 
new transitional model of aid can better mobilize domestic public, 
private, and other innovative sources of funding to create a bridge 
toward equity, sustainability, and self-sufficiency. If confirmed, I am 
committed to building on the successes of USAID's efforts to end 
preventable maternal and child deaths.

    Question. As you know, land tenure is a critical element of food 
security. However, smallholder farmers, particularly women farmers, are 
often at risk of having their land seized without their consent in 
large land acquisitions. This has been a challenge in efforts to 
promote food security and helped drive the development of the land 
tenure guidelines, which I am pleased that the United States supported.

   What are your thoughts on how USAID can ensure a strategy 
        that includes participation of small-scale farmer's 
        organizations and prioritizes their needs?
   Will USAID continue to support policies favoring large 
        agribusiness and large-scale land acquisition in Africa?
   How will USAID avoid being involved in projects that fail 
        to respect the legitimate tenure rights of local people, 
        especially in post-disaster or post-conflict assistance where 
        communities are especially vulnerable?
   What role do you see for the U.S. Government/USAID in 
        fostering increased investments by donor and host governments 
        in the agricultural sector of countries facing food insecurity, 
        specifically investments geared toward benefiting smallholder 
        farmers?

    Answer. I fully agree that land tenure is a critical element of 
food security. Indeed, smallholder farmers, particularly women farmers, 
are often at risk of having their land seized without their consent in 
large land acquisitions. This has been a challenge in efforts to 
promote food security and helped drive the development of the land 
tenure guidelines you reference.
    USAID has taken steps to ensure that land-based investments are 
responsible, inclusive, and sensitive to the interests and concerns of 
local communities. USAID supports efforts to combat hunger, poverty, 
and malnutrition through the U.S. Government's Feed the Future 
initiative, which prioritizes improving smallholder farmer access to 
tools, technologies, and markets as they are the backbone of rural 
economies. If confirmed, I will ensure that Feed the Future continues 
to prioritize country ownership, and backs strategies developed by host 
country governments with input and ongoing engagement across a range of 
important stakeholders, including smallholder farmer organizations, 
local private sector, and research organizations, to ensure inclusive 
agricultural growth.
    USAID, through Feed the Future, supports the principles of the New 
Alliance for Food Security and Nutrition, a shared commitment among 
African governments, donors, development partners, and the private 
sector that was launched in 2012 to encourage responsible private 
sector engagement in promoting inclusive growth in the agriculture 
sector for sustainable impact against poverty and malnutrition. If 
confirmed, I will ensure that the Agency continues to reinforce efforts 
to create an enabling environment for responsible investment that 
include commitments among participating parties to adhere to the 
Voluntary Guidelines on the Responsible Governance of Tenure of Land, 
Fisheries and Forests in the Context of National Food Security.
    I understand that USAID has developed Operational Guidelines for 
Responsible Land-Based Investment, which serve as guidance to the 
private sector on how to ensure that land-based investments protect 
local communities and do not displace or disadvantage local 
populations. Through training and technical assistance, research and 
evaluation, policy reform, and pilot projects, USAID is committed to 
implementing the principles set forth in the Principles for Responsible 
Investment in Agriculture and Food Systems and Voluntary Guidelines for 
the Responsible Governance of Tenure of Land, Fisheries, and Forests. 
These international law instruments create important standards of 
practice that protect people and communities and create an enabling 
environment that promotes broad-based economic growth and reduces 
extreme poverty. If confirmed, I will promote the full utilization of 
these instruments in all USAID's economic growth programs.
    USAID plays a lead role globally in promoting agriculture sector 
and food security investments through development partnerships at all 
levels. Data indicate that the agriculture sector is more than twice as 
effective in reducing poverty and increasing food security as other 
economic growth activities. A focus on reducing poverty and 
undernutrition requires a clear focus on improving the status of 
smallholder farmers. If confirmed, I will ensure that USAID investments 
focus clearly on the needs and opportunities of small-scale farming 
families and communities, where the great majority of the poor and 
food-insecure live. With its emphasis on sustainability through 
country-led partnerships, I understand that Feed the Future has helped 
spur significant increases in host-country investments in agriculture 
and food security. At their recent summit in Malabo for example, 
Africa's leaders adopted agriculture and food security as a main 
development focus, committing to invest 10 percent of national budgets 
in agriculture. Evidence-based partnerships are occurring in other 
food-insecure regions as well. Feed the Future is clearly contributing 
to reductions in both poverty and child stunting in countries where 
USAID works. If confirmed as USAID's Administrator, I will strengthen 
partnerships with both beneficiary countries, donor countries, and 
other investors to ensure that a clear priority on agriculture and food 
security continues to emphasize gains in small-farm communities.
    USAID is uniquely placed to drive gains for smallholder farmers, 
producers, and rural families that work in goods and services around 
agriculture-based value chains. Through partnerships with the U.S. 
university community for example, Feed the Future Innovation Labs are 
leading the way in developing new technologies and sustainable 
management practices that focus on increasing productivity and reducing 
risk in small-scale farming. Through global research alliances that 
link scientists and students in the United States with counterparts in 
partner countries and key international research organizations, USAID 
is leveraging the best of global science to enhance the lives and 
livelihoods of rural producer communities across Africa, Asia and Latin 
America. If confirmed, I will continue and enhance a focus on 
increasing both productivity and profitability of their enterprises and 
the private sector value chains that depend on them. I will work to 
ensure that USAID investments continue to drive agriculture and food 
security gains in ways that also enhance employment opportunities for 
the young--men and women--both on farm and off.
Countering violent extremism
    Question. Countering Violent Extremism (CVE) has emerged as a top 
White House priority, as evidenced by the February summit. And the 
State Department just released the Quadrennial Diplomacy and 
Development Review, which highlighted a CVE strategy that stressed the 
need for good governance and the importance of addressing corruption.

   What were the key outcomes/take-aways of the Kenyan CVE 
        summit?
   How will the strategies discussed there inform broader 
        prevention efforts in sub-Saharan Africa?
   In your view, what are USAID's strongest tools when it 
        comes to CVE? How does USAID plan to utilize tools to address 
        the root causes of radicalization in the West African and Sahel 
        contexts to counter the ideology of groups such as Boko Haram 
        and al-Qaeda in the Islamic Maghreb (AQIM)?

    Answer. The Kenya Countering Violent Extremism (CVE) summit will be 
held in Nairobi on June 25-28. This will be one of several regional 
summits held in the wake of the White House summit in February and in 
the leadup to the Senior Leader summit to be held in New York around 
the U.N. General Assembly.
    This summit builds on a foundation of existing engagements aimed at 
building cooperation in the East Africa region, such as the Global 
Counter Terrorism--Horn of Africa Working Group and the Partnership for 
Regional Counterterrorism in East Africa. The participants for the 
Kenya CVE summit will represent a broad spectrum of government and 
civil society from throughout the region. The objective is to enhance 
further regional cooperation and coordination, as well as develop a 
joint understanding of how violent extremists gain and sustain support 
among some local populations. By sharing knowledge and best practices, 
the conference will help strengthen the response to violent extremism 
in the East Africa region and beyond. USAID is a key member of the U.S. 
delegation to the Kenya summit and will participate in all the other 
planned regional summits.
    The White House CVE summit and the regional summits have 
highlighted the value of USAID's approach to addressing violent 
extremism as part of a whole-of-government response to terrorist 
threats in Africa and worldwide. In 2011, USAID released an agency-
level policy, the Development Response to Violent Extremism and 
Insurgency, that outlines best practices from several years of CVE 
programming, as well as from research on the factors that drive violent 
extremist recruitment and how development assistance can help mitigate 
these root causes. A critical aspect of effective CVE programming is 
building community resilience, which is particularly key in areas at 
recurring risk of exploitation by violent extremist groups. At its 
core, USAID's approach is based on understanding the legitimate 
concerns of minority populations in areas most at risk to violent 
extremism; working with local community organizations and government 
officials to address those concerns; building respect for human rights 
and the rule of law among all parties; and promoting respected, 
moderate voices who can encourage peaceful solutions to expressed 
grievances. I understand that based on evaluations of USAID programs in 
Chad, Niger, Mali, and Kenya, these programs have made a measurable 
impact among local populations by undermining support for violent 
extremist rhetoric and activities.
    It is my belief that the United States needs a broad array of tools 
in its toolkit to counter terrorism effectively. USAID's programs 
attempt to address problems at their source by decreasing the momentum 
and rationale behind violent extremist recruitment while reducing local 
sympathies and support for extremists. These efforts complement our 
Nation's ongoing diplomatic, defense, and intelligence assets aimed at 
reducing the terrorist threat to ourselves and our partners.
The Europe and Eurasia Bureau
    Question. With the rise of a belligerent Russia, the E&E Bureau has 
taken on new prominence and significant budget responsibilities 
especially with respect to Ukraine, yet the E&E Bureau does not have 
offices in the main headquarters building. This sends a bad message and 
hampers the Bureau's ability to coordinate with the rest of USAID.

   What can be done to address this issue?
   Would you consider at least moving the leadership of the 
        E&E Bureau into the main USAID building?

    Answer. I have not been involved in any decisions related to space 
within USAID's headquarters. If confirmed, I look forward to receiving 
a briefing from the relevant personnel on the Agency's plans with 
respect to the allocation of space and will ensure that our plans are 
consistent with Agency priorities and staffing requirements.
MENA
    Question. In 2011 the Arab Spring protests and calls for nonviolent 
reform offered tremendous hope for the potential of the Middle East 
region. Four years later we face a long, cold winter with many states 
reverting to old bad habits of closing off all avenues for nonviolent 
political expression or economic opportunity. Worse yet, we are facing 
failed or close to failing states in Yemen, Libya, and Syria. In the 
face of such unpredictability, instability, and violence the U.S. 
diplomatic presence and USAID field offices have been forced to draw 
down or close. In other areas, governments are actively confronting 
USAID funded programs and projects.

   How are you thinking about U.S. assistance and development 
        engagement in the Middle East and North Africa against this 
        depressing and alarming backdrop?
   Do we need to change the way we do business, or the 
        missions we pursue, in the region?

    Answer. USAID works with local and international partners to 
address the tremendous needs in the Middle East and North Africa. USAID 
recognizes that capable and accountable governance institutions are 
crucial to the sustainability of our development investments, which is 
why the Agency seeks to integrate democracy, human rights and 
governance principles and practices across all programming.
    USAID's approach in the Middle East is twofold; the Agency works 
not only with governments, but also at a grassroots level, changing the 
lives of individuals and transforming communities. USAID works closely 
with national governments where that is possible, and where national-
level governance institutions are lacking, USAID works at the local 
level, with municipal councils or local civil society, to help meet the 
immediate needs of the people in the region as well as build 
sustainable local governance structures that can support a move to 
resilient democratic societies. Local- and municipal-level governance 
issues are an increasingly important component to USAID's work in the 
region, especially in communities affected by conflict and crisis. Key 
elements in all USAID programs are a deep analysis of the political 
context, supporting citizen engagement in policymaking and service 
delivery, and promoting the rights of all citizens and groups to ensure 
equitable development gains. USAID programs represent a long-term 
investment in the people and communities of the Middle East and North 
Africa and build on the Agency's mission to partner to end extreme 
poverty and promote resilient, democratic societies while advancing our 
own security and prosperity.
    USAID is constantly reassessing the way it does business and the 
specific programs in which it invests. Each country and regional 
program begins with a careful assessment of local needs and capacity 
for reform. Once programs are implemented they are carefully monitored 
and evaluated for effectiveness and lessons learned. Security concerns 
remain a significant challenge, and the security of USAID staff and 
implementing partners is paramount. In places where USAID has no 
direct-hire staff on the ground, the Agency uses local and 
international partners as well as remote management techniques to 
continue and ensure close oversight of USAID programs.
    If confirmed, I look forward to working with Agency personnel, the 
Congress, and our implementing partners to ensure our programming is 
achieving maximum impact and effectiveness.
Humanitarian response (Syria)
    Question. In addition to the recently closed $10 million USAID/
DCHA/OFDA Annual Program Statement to support local capacity-building 
and emergency response efforts in Syria, in what other ways can USAID 
best support long-term efforts to more effectively reach the over 12.2 
million IDP's inside Syria that are in need of humanitarian assistance?

    Answer. USAID continues to work through all channels--including the 
United Nations (U.N.), international organizations, nongovernmental 
organizations (NGOs), and local Syrian organizations and networks--to 
maximize the reach of critical, lifesaving assistance to conflict-
affected populations throughout Syria. This includes assistance that 
originates in Syria as well as cross-line and cross-border assistance. 
By using all means possible to get lifesaving assistance to those in 
need throughout the country--including in regime, contested, and 
opposition--held areas--USAID is reaching all 14 governorates of Syria.
    The aministration's ultimate humanitarian priority is to provide 
lifesaving assistance to all that we are able to reach and continue to 
push for consistent, safe, and secure access for humanitarian aid 
workers. As part of ongoing efforts to address the increase in 
humanitarian needs in an extremely fluid conflict, USAID continues to 
identify and support opportunities to strengthen and maximize the reach 
of humanitarian assistance throughout Syria. As part of all 
humanitarian programs, including USAID's Office of U.S. Foreign 
Disaster Assistance (OFDA) Annual Program Statement, USAID partners 
provide technical assistance to local organizations to strengthen their 
ability to meet the needs of affected populations. USAID works with 
other donors and implementing partners to identify opportunities to 
transition from emergency response to longer term early recovery and 
development programs. The Agency's humanitarian experts coordinate 
closely with development counterparts to help ensure that, when 
humanitarian assistance programs end, basic social services can be 
maintained.
    The needs in Syria are significant and USAID has had to balance 
these needs with those of other crises around the world, prioritizing 
the most immediate lifesaving assistance first. I understand that USAID 
is working closely with the State Department as well as other 
international donors to encourage countries to follow through on 
pledges made at the Kuwait conference, especially Gulf States.
Egypt
    Question. President Sisi has made economic stabilization a priority 
for his administration and has committed to creating employment through 
megaprojects like the expansion of the Suez Canal. U.S. assistance has 
focused supporting education, entrepreneurs, and small and medium-sized 
enterprises, most notably through the Higher Education Initiative and 
the Egyptian American Enterprise Fund.

   In what ways do U.S. assistance and Egyptian economic 
        development initiatives complement each other?

    Answer. U.S. economic assistance to Egypt is designed to work 
across all sectors to support and strengthen Egyptian actors who 
advance democratic ideals. Improved employment and economic opportunity 
are cornerstones of stability in Egypt. Poverty and economic exclusion, 
when unaddressed, inhibit the ability of individuals to invest in their 
own future and make them vulnerable to forces of instability as they 
struggle to provide for their daily needs.
    I understand that USAID supported Egypt's Ministry of Planning in 
developing the country's Sustainable Development Strategy, released in 
March 2015. The strategy has four principal goals: (1) improved 
economy, including macroeconomic, tax, and subsidy reforms to reduce 
the deficit and lower inflation; (2) improved business enabling 
environment through regulatory and institutional reforms; (3) better 
access for all Egyptians to services and employment opportunities; and 
(4) increased investment in human capital, specifically reforming 
education and health systems. The strategy also emphasizes improving 
social safety nets and promoting opportunity for women and youth.
    USAID is positioned to support the Government of Egypt's vision 
outlined in its Sustainable Development Strategy. USAID programs in 
economic growth, education, health, and democracy and governance are 
designed to address the core development issues identified in the 
Government of Egypt's strategy. USAID supports major themes of the 
strategy, including macroeconomic policy reform, small and medium 
enterprise development, vocational and technical education, and social 
justice and inclusion.
    For example, building skills in Egypt's private sector workforce, 
particularly in small business, tourism, and agriculture, is a key 
component of USAID's development approach. USAID also recognizes the 
need to work within the health care system to provide better care in 
rural community clinics and promote infection control programs in 
hospitals.USAID's technical and vocational school interventions and 
programs that support science, technology, engineering, and mathematics 
education promote private sector growth and enterprise development. 
Many of USAID's activities target underserved areas, mainly in rural 
Egypt. All of these interventions are supportive of the Government of 
Egypt's Sustainable Development Strategy.

   How can U.S. assistance help to promote political reform, 
        in addition to economic reform?

    Answer. Consistent with U.S. foreign policy objectives, assistance 
activities in Egypt are designed to promote both political and economic 
reform. U.S. assistance focuses on various aspects of the enabling 
environment needed both for inclusive economic growth and improved 
governance. Support also assists in making public institutions more 
accountable and effective, and in empowering Egypt's citizens.
    If confirmed as Administrator, I will ensure USAID's continued 
commitment to promoting essential democracy and governance principles 
in Egypt. While advancing certain democracy, rights and governance 
issues is a challenge in the current environment, the Agency is moving 
forward with support to civil society organizations to combat gender-
based violence, promote women's empowerment, counter trafficking in 
persons, promote religious tolerance, and support rights of people with 
disabilities. Many international and Egyptian civil society 
organizations remain committed to working with USAID. The Agency also 
works to empower Egyptian civil society actors across its assistance 
programs, including in education, economic development and health.
    The Egyptian Government has also specifically requested USAID 
assistance in key areas such as election administration reforms, 
training Egyptian judges, and decentralizing Egypt's Government in line 
with provisions of Egypt's new Constitution. USAID also has mechanisms 
in place to support parliamentary strengthening once a new Parliament 
is elected.

    Question. There is solid evidence that early malnutrition, 
especially during the 1,000 day window from pregnancy to age 2, is an 
obstacle to cognitive and physical development. It affects long-term 
health, learning and earning potential. Malnutrition, in other words, 
is a constraint to economic growth.
    Malnutrition is also the underlying cause of half of all deaths of 
children before they reach their 5th birthday. Having the benefit of 
the recently launched USAID Multi-Sectoral Nutrition Strategy and the 
soon-to-be launched U.S. Whole of Government Nutrition Coordination 
Plan, how would you build upon global momentum on maternal and child 
nutrition to achieve and increase U.S. nutrition commitments and high 
impact interventions that help children to survive and thrive?

    Answer. USAID's multidisciplinary approach to addressing 
malnutrition works across the Agency's programs, including the U.S. 
Government's Feed the Future and Global Health activities, the Office 
of Food for Peace development programs, resilience efforts, and 
nutrition investments through economic growth, water and sanitation, 
and other sectors. USAID's focus is primarily on the prevention of 
undernutrition during the first 1,000 days--from pregnancy through a 
child's second birthday--through comprehensive programs in health, 
humanitarian assistance, and food security. Last year, the Agency's 
efforts reached over 12.5 million children under 5 with nutrition 
interventions. Over the past 18 months, USAID has led the development 
of a consolidated U.S. Government Nutrition Coordination Plan to 
harness the power of the diverse investments across the U.S. Government 
through better communication and collaboration, and to create stronger 
links between research and program implementation. This plan is 
expected to be launched this fall.
    The Agency's high level goal to End Preventable Child and Maternal 
Deaths has nutrition at its core with renewed investments to promote 
breastfeeding, improve maternal nutrition for mothers' health and for 
the healthy growth and development of babies, and for better feeding 
practices for infants and young children. Better nutrition includes 
clean water, better hygiene and sanitation to prevent the vicious cycle 
of infection and chronic undernutrition.
    Multisectoral attention in nutrition interventions is producing 
positive results. In Bangladesh, 2014 survey results show an almost 15 
percent average reduction in stunting during the past 3 years across 
priority geographical areas where Feed the Future programs are 
concentrated. In Ethiopia, through Feed the Future and Food for Peace 
development and emergency programs, USAID is supporting progress toward 
achieving real reductions in stunting, with rates declining by 9 
percent over the past 3 years, resulting in 160,000 fewer stunted 
children despite a growing population.
    If confirmed, I will continue to scale up USAID's successful 
multisectoral programs and exercise strong leadership, including 
through its critical role in the global Scaling Up Nutrition--or SUN--
Movement, to leverage the combined efforts and commitments of multiple 
donors and countries to drastically reduce chronic malnutrition 
globally. SUN is a global movement comprised of 55 country governments, 
civil society, private sector, and donors and provides a global 
spotlight on the challenges and progress in eliminating undernutrition.

                               __________
               administrator-designate smith's responses 
                    to questions from senator boxer
    Question. Supporting Women Globally.--This year marked the 20th 
anniversary of the 4th World Conference on Women. Over the past 20 
years, the international community has made important progress on 
advancing the rights of women worldwide. However, as long as women and 
girls around the globe continue to face violence and discrimination and 
are denied the opportunity to exercise their most basic rights, the 
United States must continue to focus on women and girls as a 
cornerstone of its foreign policy and development.

   How do you see the role of women and girls in development?
   If confirmed, how will you work to ensure that USAID 
        programs continue to advance women's equality, health, 
        political participation, and rights globally?

    Answer. Throughout my career, I have been dedicated to initiatives 
that empower women and girls. Gender equality and women's empowerment 
must be at the core of all of our development programs. Water, energy, 
agriculture, health, and education all affect men and women 
differently. These differences are not barriers but opportunities to 
maximize the impact of our work by delivering development in a more 
targeted, effective and sustainable way.
    Over the past several years, the Agency has made important strides 
to elevate women and girls in its approach and programming. The U.S. 
National Action Plan (NAP) on Women, Peace, and Security (2011) and the 
subsequent USAID Implementation Plan are an integral part of the 
Agency's architecture for advancing gender equality and female 
empowerment. In 2012, USAID released the Gender Equality and Women's 
Empowerment Policy, which mandates that gender equality be integrated 
throughout all programs and initiatives. To help facilitate 
integration, USAID developed accompanying policy implementation 
guidance, a series of in-person and online gender training courses to 
build staff capacity, and a suite of technical resources and tools that 
have been disseminated to staff worldwide.
    Now that the foundation has been established, the remaining 
challenge is to ensure that gender is truly integrated across all of 
the sectors in which the Agency works, including global initiatives 
such as eradicating extreme poverty, resilience, countering violent 
extremism, and responding to climate change. Doing so will require a 
deeper understanding of the challenges in each sector through in-depth 
gender analysis and impact measurement as well as the necessary 
resources to advance the solutions.
    USAID has a major role in the White House's new Let Girls Learn 
initiative, which addresses the complex and varied barriers preventing 
adolescent girls from attending and completing school, and from 
realizing their potential as adults. USAID's Let Girls Learn approach 
is comprised of three main pillars: Increasing Access to Quality 
Education; Reducing Barriers such as school fees and the threat of 
violence; and Empowering Adolescent Girls.
    If confirmed, I will work with Congress and with the talented men 
and women of USAID to build on this important progress.

    Question. Improving Education for Adolescent Girls.--Globally, 62 
million girls are not in school and approximately 17 million will never 
go to school. Of these girls, 35 million are adolescents who should be 
in or nearing secondary school. Statistics show that increased levels 
of girls' education support improved health, economic status, and 
political participation.
    In 2013, I introduced legislation, named for Malala Yousafzai, 
which was designed to expand scholarship opportunities for 
disadvantaged young women in Pakistan through USAID's Merit and Needs 
Based Scholarship Program. In response to this legislation, I was 
pleased that USAID committed to provide 50 percent of all future 
program scholarships to women and is on track to meet that goal in 
calendar year 2015.

   If confirmed, how will you work to continue to expand 
        educational opportunities for women and girls in Pakistan?

    Answer. Pakistan's ability to educate its population is critical to 
the country's long-term stability and prosperity. I understand that, 
despite recent measures taken to expand Government of Pakistan spending 
and performance in this sector, Pakistan's challenges remain daunting. 
School-aged girls, specifically, face additional challenges; 55 percent 
of children out of school are girls. For those who do attend school, 
many are not learning what is needed to find employment and function in 
Pakistan's economy.
    In line with Pakistan's Vision 2025, U.S. assistance helps Pakistan 
address obstacles to accessing quality basic and higher education, 
including for women and girls. Programming also provides ample 
opportunity to build collaborative relationships between U.S. and 
Pakistani individuals and institutions, which will have a long-term 
impact on Pakistan's trajectory and U.S.-Pakistan cooperation. If 
confirmed, I will ensure USAID's basic and higher education programs 
will continue to work to improve access to education for young 
Pakistanis, including women and girls. For example, I understand that 
in basic education, the Pakistan Reading Project (PRP) is USAID/
Pakistan's flagship reading program, and will continue to support 
Pakistani-led efforts to introduce and institutionalize improvements in 
reading instruction and reading assessment in the first and second 
grade levels in public schools across Pakistan. The project will train 
more qualified female teachers for girls' and mixed gender primary 
schools, and will reach approximately 754,000 students, of which half 
are girls and, of the girls, 27 percent are adolescents.
    In Sindh, I understand that USAID's Sindh Basic Education Project 
will continue to strengthen the capacity of the Government of Sindh to 
deliver quality education and empower communities to become more 
involved in their children's education. To improve educational outcomes 
and increase community involvement in education, the project will help 
construct schools, train teachers in early grade reading and 
mathematics instruction and provide basic reading and math skills to 
students. The program is projected to benefit over 82,000 adolescent 
girls.
    In higher education, I understand USAID has seen an increase from 
48 percent to 58 percent of university scholarships under USAID/
Pakistan's Merit and Needs-Based Scholarship Program awarded to women. 
To date, 507 scholarships have been awarded to students; of these, 293 
were given to female students. Pakistan also remains the largest 
Fulbright Scholars program country in the world, with half of all 
scholarships going to women.

   Will you commit to make girls' education--especially 
        adolescent girls' education--a priority during your tenure at 
        USAID?

    Answer. If confirmed, I will ensure that USAID will remain strongly 
committed to ensuring that girls succeed and stay in school. Advancing 
girls' education can unlock human potential on a transformational 
scale. Girls' education is key in the global effort to end extreme 
poverty. Investing in girls' education could boost agricultural output 
in sub-Saharan Africa by 25 percent, and if 10 percent more girls 
attend school, a country's GDP increases by an average of 3 percent.
    Advancing girls' access to, and success in, education is integrated 
throughout the Agency's education portfolio. By integrating gender 
considerations across all USAID's education programs, the Agency has 
the potential to transform gender norms and achieve equality for all 
learners in a scalable and sustainable manner. USAID provides 
substantial support and funding aimed at ensuring that girls and 
adolescent females have increased equitable access to quality 
education, particularly in crisis and conflict-affected environments. 
Specifically in education, I understand that promoting gender equality 
remains a top priority in each of the three Education Strategy goal 
areas: increasing primary grade reading; youth and workforce 
development; and education in crisis- and conflict-affected areas.
    One of the first USAID programs announced under Let Girls Learn is 
the one the First Lady announced during her trip last week in the 
Democratic Republic of the Congo, where USAID has partnered with the 
United Kingdom's Department for International Development (DFID) to 
provide girls who are not in school with access to accelerated and 
alternative learning programs in the conflict-affected areas of North 
Kivu, South Kivu, and Katanga. This program aims to benefit more than 
755,000 girls ages 10 to 18 over the next 5 years, providing up to $180 
million (up to $125 million by USAID and 36M committed by 
DFID). Through programs like this, and throughout the Agency's 
portfolio, USAID supports adolescent girls in getting the education 
they deserve.

    Question. U.S. Efforts to Support International Family Planning.--
Statistics clearly show that a woman's ability to decide when, whether, 
and how many children to have is fundamental to her ability to thrive 
and fully realize her rights and potential.

   How do you see access to voluntary family planning services 
        as part of broader efforts to support women's health and 
        rights?

    Answer. Access to voluntary, affordable, and high-quality family 
planning services is an essential part of USAID's broader effort to 
support women's health and rights. When women are able to delay their 
first birth until at least age 18 and to space subsequent births at 
least 2 years apart, both mother and baby are more likely to survive. 
Some 225 million women in the developing world say they want to delay 
their next pregnancy or stop childbearing altogether but are not using 
a modern method of contraception. Fully meeting this unmet need by 
expanding access to, and use of, voluntary family planning would result 
in 52 million fewer unintended pregnancies, 70,000 fewer maternal 
deaths, and 500,000 fewer infant deaths annually. In addition, girls 
who can avoid pregnancy while in school are more likely to finish 
school.

    Question. U.S. Efforts to End Preventable Maternal and Child 
Deaths.--In your testimony, you mentioned that continuing efforts to 
end preventable child and maternal deaths would be a priority for you 
if you are confirmed to be the Administrator of USAID.
    It is more important than ever that the United States continue to 
make robust investments in maternal and child health. As a result of 
U.S. leadership, real and measurable progress has been made. In the 24 
countries where U.S. involvement has been the greatest, maternal 
mortality has declined an average of 4 percent each year, faster than 
the global average.

   With this progress in mind, if confirmed, how will you work 
        to continue and expand these effective investments to work 
        toward achieving the global goal of ending preventable maternal 
        and child deaths by the year 2035?

    Answer. Since 2009, the Obama administration has been strategically 
focusing its maternal and child health programs on countries with the 
highest burdens of maternal, newborn, and child deaths and where the 
United States had the opportunity to make a difference in this outcome. 
By focusing on countries and populations with the highest need, U.S. 
programs have helped save millions of lives, contributing to greater 
equity and more inclusive development. In USAID's 24 priority countries 
that account for more than 70 percent of global child and maternal 
deaths, nearly 800,000 more children survived in 2013 than in 2008, 
contributing to a cumulative total 2.4 million lives saved.
    USAID's 2014 report ``Acting on the Call: Ending Preventable Child 
and Maternal Deaths'' outlined an evidence-based plan to accelerate 
progress in USAID priority countries--sharpening field programs, 
realizing efficiencies, and improving accountability to yield the 
greatest number of lives saved, while building systems and partnerships 
to sustain progress. Building on this momentum, USAID appointed a Child 
and Maternal Survival Coordinator in 2015, focused on: (1) continuing 
to sharpen the Agency's work toward Ending Preventable Child and 
Maternal Deaths; (2) intensifying external engagement with Congress and 
partners, advocates, civil society, faith groups, and partner country 
leaders that are critical to progress; and (3) increasing financing for 
EPCMD. USAID is working to accelerate its action through a new 
framework to track success, support missions, and ensure that resources 
are in place to sustain the effort. By enhancing existing internal 
processes such as the annual operational plan development, USAID can 
improve its performance and ensure that our investments are focusing on 
the highest priorities. Dashboards have been developed to rigorously 
measure progress at both the outcome level and input level. The 
dashboards facilitate a more organized, coordinated system for 
tracking, and managing progress, and are a supporting tool in a 
comprehensive approach to measuring progress.
    I understand USAID is working to release the second ``Acting on the 
Call'' report in summer 2015, following up on commitments and targets 
set in the 2014 report. Through dashboards and these annual reports, 
USAID is holding itself and its partners accountable for accelerating 
our impact on ending preventable child and maternal deaths.
    Ending Preventable Child and Maternal Deaths cannot be accomplished 
by USAID alone. In 2012, the Governments of Ethiopia, India, and the 
United States, in collaboration with UNICEF, hosted the Call to Action 
to unite the global community around this achievable goal. The same 
partners convened again in 2014 to assess progress and identify 
challenges. This year, the Government of India will host a followup 
global conference in August, cohosted by the Governments of Ethiopia 
and the United States, and UNICEF. Since 2012, 20 governments have 
committed to--and most have developed--national plans to accelerate 
progress, set clear priorities and costs and scorecards to 
systematically track outcomes.
    Since the beginning of the Obama administration, the U.S. 
Government has increased investments in global child and maternal 
survival with the strong, bipartisan support of Congress. Worldwide, 
government health expenditures and donor contributions have seen 
meaningful growth. There still remains a gap in financing needed to 
build on progress to date and bridging that gap will require strategies 
that incorporate domestic resource mobilization, global engagement, 
USAID's Health Financing Framework, and targeted country-specific 
interventions. As countries experience unprecedented economic growth, a 
new transitional model of aid can better mobilize domestic public, 
private, and other innovative sources of funding to create a bridge 
toward equity, sustainability, and self-sufficiency. If confirmed, I am 
committed to building on the successes of USAID's efforts to end 
preventable maternal and child deaths.

                               __________
               administrator-designate smith's responses 
                    to questions from senator rubio
On democracy, rights, and governance
    Question. What guarantees can you give the committee that you will 
consult the democracy, rights, and governance (DRG) community on 
USAID's strategic objectives and program implementation? Are you 
willing to provide the committee with periodic reports on your 
consultations with the DRG community?

    Answer. The community of implementing organizations--including 
grantees, contractors, universities, private sector organizations, 
labor, human rights and women's rights advocacy groups and other 
organizations--is essential to accomplishing USAID's mission to promote 
prosperous, resilient democratic societies. I believe that consultation 
with international and local partners is fundamental to the successful 
implementation of the Agency's programs. In developing strategies, 
programs, and implementing strategies, USAID policy calls for 
consultation with stakeholders and if confirmed, I will strongly 
support these efforts and will commit the Agency to providing periodic 
reports to the committee on our consultations with the democracy, 
rights and governance community.

    Question. The United States has developed a strong nonprofit sector 
to implement, through cooperative agreements, programs in support of 
those seeking freedom and genuinely participatory governance. How will 
you ensure that funding for DRG programming will be maintained through 
the cooperative agreement mechanism?

    Answer. I understand that cooperative agreements, as one form of 
assistance, are widely used and represent a successful approach for 
accomplishing objectives across many development sectors, particularly 
in the Democracy, Rights and Governance (DRG) sector. I further 
understand that contracts also have an appropriate role to play in 
implementing DRG assistance. My understanding is that the Agency is 
currently working to develop supplemental guidance for the DRG sector 
to assist field officers in determining the choice of mechanism in 
light of what they are trying to achieve and what in their judgment 
will produce success in that country setting. If confirmed, I look 
forward to consulting with Congress and our implementing partners to 
ensure we are getting this mix right.

    Question. USAID has attempted to ``mainstream'' democracy and 
governance by claiming to incorporate it into traditional development 
programs (e.g., health, education, environment), yet the record is 
mixed on whether that actually works. What are your intentions to work 
with the DRG community on the incorporation of participatory mechanisms 
in traditional development programming?

    Answer. ``Mainstreaming'' or what the Agency has defined as 
``Democracy, Rights and Governance (DRG) integration'' involves the use 
of DRG approaches across other development sectors. This initiative is 
based on the understanding that technical solutions alone may be 
ineffective or unsustainable without a strong foundation based on good 
governance and effective, transparent, and accountable institutions. 
Indeed, the Agency's programs in health, food security, climate change, 
economic growth all need to have components of citizen participation 
and government accountability to be successful.
    If confirmed, I am committed to consulting partners in the DRG 
community on an ongoing basis to maximize the effectiveness and impact 
of our programs and ensure that democratic principles underpin all of 
our work.

    Question. Specifically in the case of closed societies or countries 
where space for political activity and civil society is closing, what 
is your vision for USAID's role in providing support in those 
instances? What specific steps would you implement to achieve your 
vision?

    Answer. I believe that USAID has a critical role to play in 
supporting reform within closed societies. In doing so, however, the 
Agency must maintain an appropriate balance between the transparency of 
USAID's programming on the one hand and the security of our 
implementing partners and program beneficiaries on the other hand. It 
is my understanding that over the past year, and in consultation with 
Congress and implementing partners, USAID has formulated and begun to 
implement a new policy in this area, which is available on its public 
Web site. The new guidance sets out core principles and detailed 
processes to govern the Agency's work in this small set of countries. 
For example, USAID will work with prospective partners to identify all 
possible sources of risk to a proposed program. And the Agency will 
undertake senior-level quarterly reviews to ensure that all of our 
programs in these countries are sufficiently addressing risk and 
sufficiently fulfilling our obligation to transparency.
    I think this represents a sensible approach, and if confirmed, look 
forward to working with the Agency, Congress, and our implementing 
partners to provide careful stewardship of these critical programs.
On Central America
    Question. The State Department is asking for $1billion dollars for 
1 year to improve security, advance good governance and stimulate the 
economy of El Salvador, Guatemala, and Honduras which are collectively 
known as the Northern Triangle Countries.

   What programs does USAID currently have in Central America?

    Answer. Much of USAID's assistance in recent years has focused on 
crime and violence prevention through the Central America Regional 
Security Initiative (CARSI). Results from a Vanderbilt University 
impact evaluation of USAID's CARSI community-based interventions in 
Guatemala, El Salvador, Honduras, and Panama show that USAID's programs 
are reducing crime victimization and residents' sense of insecurity. 
For example, in communities with USAID interventions, compared to 
control communities with no USAID intervention, there was a 51-percent 
decrease in residents' awareness of murders in their own neighborhoods, 
51-percent decrease in residents' reports of extortions, 25-percent 
decrease in residents' reports of illegal drug sales, and 19-percent 
decrease in residents' reports of robberies.
    USAID's governance programs focus on strengthening institutions at 
the national and subnational levels and improving citizens' and civil 
society's public participation. USAID has supported efforts to improve 
delivery of basic services, to incorporate citizen participation into 
public policy, to increase citizens' access to justice, to decrease 
impunity, and to improve governments' capacity to generate and collect 
their own revenue. For example, USAID/El Salvador's tax administration 
and expenditure management programs set up automated audits, one-stop 
shops for taxpayers, improved enforcement of tax policies, which have 
resulted in a 30-percent overall increase in revenue collections from 
2010-2013. In terms of revenue collected as a percentage of GDP, USAID 
has helped El Salvador achieve an increase from 13.5 percent in 2010 to 
15.5 percent in 2014.
    Current USAID economic growth programming in Central America is 
limited in scope. In Guatemala and Honduras, USAID's Feed the Future 
programs promote food security, increase incomes, and enhance nutrition 
by improving production of staple and higher value crops, linking 
producers to markets, and supporting targeted nutrition interventions. 
In Honduras, over 3 years, USAID has helped to double incomes (from 
$0.62/day to $1.21/day) of over 22,000 farming families or 125,000 
people in one of the poorest regions. Programs in El Salvador support 
the Partnership for Growth Joint Country Action Plan and include 
improvements to the business enabling environment, support to small and 
medium enterprises (SMEs), and efforts to boost market relevant skills 
in the labor force. In El Salvador, over 3 years, USAID has helped SMEs 
generate over $57 million in new sales and exports. Central America 
Regional programs are helping to reduce the time and cost to trade 
goods across borders. The Central America Strategy envisions greater 
investments in areas such as promoting regional integration, improving 
the business climate, supporting SME development, creating a productive 
workforce, and reducing poverty.
    The Strategy for U.S. Engagement in Central America broadens 
USAID's vision for how it achieves security. USAID will balance its 
previous and ongoing citizen security-focused investments with 
proportional investments in prosperity and governance. USAID has 
prioritized three interconnected objectives: prosperity, governance, 
and security. A secure, democratic, and prosperous Central America will 
provide an environment in which all of its citizens choose to remain 
and thrive.

    Question. Considering the history of corruption in some Central 
American countries, how does the administration plan to account for the 
$1 billion dollars?

    Answer. My understanding is that all foreign assistance programs 
administered by USAID are required to have oversight processes in place 
to ensure the effectiveness of activities, to monitor funds spent by 
our partners, and to ensure compliance with federal regulations. USAID 
regularly evaluate its activities. Nearly all of its current resources 
are programmed through nongovernmental organizations and development 
companies, which are audited on a regular basis.
    Going forward, I understand the Department of State and USAID 
intend to calibrate assistance in response to real reform efforts to 
send a clear message at the outset that resources will follow reform, 
and that they will reward the countries that are the most serious about 
reform. In my view, USAID programming cannot succeed without the right 
policy environment. Funding flexibility will enable the Department and 
USAID to support programs with the greatest potential and to ensure 
senior U.S. Government officials can press partner governments on the 
needs to make tough reforms.
    USAID is developing a results framework for the U.S. Strategy for 
Engagement in Central America that identifies the key goals the 
strategy will advance. The framework will assess progress on three 
levels: programmatic, political will, and national level trajectory. 
USAID will prepare regular reports for U.S. Government principals to 
inform ongoing policy discussions.
    Programmatic: The Department and USAID use both formal and informal 
methods to continuously monitor and evaluate the performance of its 
programs. A program tracker will allow USAID to determine what works 
and where its programs face obstacles. If necessary, principals will be 
able to intervene in order to accelerate or adjust implementation and 
to remove obstacles.
    Political Will: While the United States is investing significant 
resources, success in Central America is first and foremost dependent 
on the Central American governments themselves taking ownership for 
creating the conditions for positive change in their countries. U.S. 
engagement and the possibility of a new U.S. approach to assistance has 
already leveraged greater efforts by Central American nations, and they 
are solidifying their 2016 budget plans to include significant 
financial contributions to programs. Initial political will indicators 
are derived from the March 3, 2015, Joint Statement between the Vice 
President and the Presidents of El Salvador, Guatemala, and Honduras as 
well as from the ``Alliance for Prosperity.'' This category will 
reflect an ongoing conversation with senior U.S. officials and leaders 
from the region; new indicators will be added based on these 
conversations.
    National Level Trajectory: I believe it is important to bear in 
mind the desired outcome of a deepened and sustained U.S. engagement in 
Central America. While national-level indicators will not likely change 
on a quarterly basis--and may not change year to year--USAID is 
ultimately seeking to advance the most important indicators such as GDP 
growth, poverty rates, homicide rates, and perceptions of corruption 
throughout the region.
    USAID measures good governance in a number of ways, and over the 
long term will rely on indicators from respected organizations such as 
Transparency International, Freedom House and the World Bank. Citizens' 
trust in state institutions, increased collection and effective and 
transparent use of public revenue, and actions by the government that 
hold officials accountable are all indicative of the strength of 
government institutions.
    USAID's prosperity interventions will be measured by such 
illustrative indicators as income levels and the ability of citizens to 
participate in the formal economy.
On Haiti
    Question. The planned funding by USAID for Haiti in fiscal year 
2015 is $274 million. According to foreignassistance.gov, approximately 
$64 million has been obligated in the first 9 months of the year.

   Why has less than a quarter of the aid budgeted been spent 
        when many Haitians continue to sit in emergency camps and 
        desperately need our help?

    Answer. As with all of our assistance programs, I believe it is 
critical that we strike the right balance between ensuring that our 
interventions are carried out in a timely manner while also performing 
appropriate due diligence, oversight and planning. I understand that as 
of March 31, 2015, USAID had approximately $1.8 billion available for 
long-term reconstruction and development in Haiti, of which $1.5 had 
been obligated; with disbursements totaling $1.3 billion or 72 percent 
of overall funds provided. In addition, I am told that 100 percent of 
the $1.2 billion provided for humanitarian assistance has been 
disbursed.
    Regarding internally displaced persons, it is important to note 
that, as of March 2015, nearly 94 percent of the 1.5 million internally 
displaced people have left temporary camps for alternative housing 
options. USAID, for its part, provided shelter solutions to more than 
328,000 people through transitional shelters (t-shelters), repairs to 
damaged houses, financial support to host families who housed displaced 
people, and provided short-term rental vouchers to affected families. 
USAID's long-term strategy for the shelter sector is to support cost-
effective ways to increase durable housing stock through private sector 
engagement and urban planning. This includes providing low-income 
households with access to housing finance and better infrastructure, 
and working in existing neighborhoods, and the Government of Haiti to 
expand access to basic services.

    Question. As Haitian nationals are being repatriated by the 
Dominican Republic, is the aid currently being sent sufficient to help 
Haiti resettle these nationals? Or will additional funds be requested?

    Answer. The administration continues to press for a diplomatic 
solution to the repatriation issue that will mitigate the need for a 
humanitarian response related to repatriated persons.
    I understand that USAID is closely monitoring this situation but is 
not at the point of requesting additional funding.
Palestinian steps at the United Nations and the ICC
    Question. On April 1, 2015, the Palestinians formally became a 
member of the International Criminal Court (ICC). Under current U.S. 
law, the administration is required to cut off Palestinian aid if the 
Palestinians pursue or support charges against Israel in a judicially 
authorized ICC case at the ICC.
    The Palestinian Authority has also taken a series of detrimental 
steps at the United Nations over the past year, including an effort 
last year to push for a one-sided United Nations Security Council 
(UNSC) resolution that called for a final agreement within 12 months 
requiring total Israeli withdrawal to the pre-1967 lines by 2017, 
regardless of Israeli security concerns.

   If confirmed, will you continue to oppose the ICC's 
        politicization of these issues, as is current U.S. policy?
   What impact do you think President Mahmoud Abbas's move 
        should have on current U.S. aid to the Palestinians and 
        America's willingness to provide future assistance?
   What role is USAID currently playing in Gaza and what do 
        you believe is the appropriate role for USAID going forward?
   There are troubling reports that some of the money that has 
        made it into Gaza for reconstruction has been diverted for 
        continued construction of Hamas terrorist tunnels. Is this 
        true? If confirmed, what mechanisms will you put in place to 
        ensure U.S. aid reaches its intended recipients?
   What steps will USAID take to employ proper auditing 
        requirements on aid to the Palestinians? Will you ensure proper 
        strict procedures are in place to ensure U.S. aid reaches its 
        intended targets and is not abused to support Hamas or other 
        Palestinian entities that support violence?

    Answer. I understand that USAID, in conjunction with the State 
Department, continues to review U.S. assistance to the Palestinians. 
Although the administration's view is that the legislative restrictions 
related to Palestinian initiation or active support for an ICC 
judicially authorized investigation have not been triggered to date, we 
are deeply troubled by Palestinian action at the ICC and continue to 
voice our opposition to further actions to both the Palestinians and 
the international community.
    The administration continues to believe that U.S. assistance to the 
Palestinian people is an important tool in promoting regional 
stability, economic development, and increased security for both 
Palestinians and Israelis.
    Since the onset of the July-August 2014 conflict in Gaza, the 
United States has committed more than $231 million in humanitarian 
assistance to Gaza. This assistance has been provided to established 
U.N. and nongovernmental organizations, including the United Nations 
Relief and Works Agency for Palestine Refugees in the Near East 
(UNRWA), the World Food Program, the United Nations Development 
Program, UNICEF, the International Committee for the Red Cross, and 
others. My understanding is that USAID is not currently aware of any 
reports that U.S. assistance for humanitarian aid in Gaza, including 
reconstruction, has been diverted for other purposes. The United States 
takes very seriously any reports of diversion of its assistance, and 
USAID has long required its partners in Gaza to take appropriate steps 
to prevent U.S. funding from being diverted for nonintended purposes.
    Consistent with statutory requirements, USAID has appropriate 
procedures in place to ensure that Economic Support Fund (ESF) 
assistance for the West Bank and Gaza is not provided to or through, or 
diverted to, any individual or entity that is known to be involved in 
or advocating terrorism, including Hamas. USAID's vetting process 
checks non-U.S. individuals and entities within certain thresholds 
against law enforcement and intelligence community systems prior to 
local prime or subaward issuance. Worldwide, USAID requires grantees to 
sign its Certification Regarding Terrorist Financing in order to 
receive funds. In the West Bank and Gaza specifically, the annual 
Appropriations Act requires annual audits of all USAID direct awardees, 
as well as an annual Government Accountability Office audit of the use 
of all ESF assistance. USAID will continue providing humanitarian and 
other assistance to Palestinians in Gaza, in line with the 
administration's national security objectives, and in compliance with 
U.S. law.
    I am committed to strong oversight of and accountability for the 
administration of foreign assistance funds entrusted to the Agency and 
preventing waste, fraud, or abuse, and if confirmed, this will be a top 
priority.
Egypt
    Question. What is the current status of U.S. economic aid to Egypt? 
How can our aid to Egypt be better targeted to strengthen Egyptian 
actors that support democratic ideals? How will economic assistance to 
Egypt be used? Do you support current conditions on U.S. aid to Egypt, 
including the maintenance of the Egypt-Israel peace treaty?

    Answer. U.S. economic aid to Egypt is designed to work across all 
sectors to support and strengthen Egyptian actors who advance 
democratic ideals. Poverty and economic exclusion, when unaddressed, 
inhibit the ability of individuals to invest in their own future and 
make them vulnerable to forces of instability as they struggle to 
provide for their daily needs.
    Economic assistance to Egypt aims to help foster rapid, inclusive, 
and sustainable economic growth. USAID's economic growth programs focus 
on supporting sound macroeconomic management, improving the climate for 
private sector businesses, developing small and medium enterprises to 
create jobs, and promoting bilateral trade. Assistance in the education 
sector will strengthen basic skills in elementary school and adult 
literacy to increase the employability of young Egyptians. The U.S.-
Egypt Higher Education Initiative provides scholarships to economically 
disadvantaged men and women and builds the capacity of Egyptian higher 
education institutions to meet the demands of a modern global economy. 
Programming across sectors in Egypt supports access to quality social 
services, including those related to education and health. Funding also 
aims to strengthen democratic governance in Egypt by working with civil 
society, improving the rule of law and enhancing efficiency of service 
delivery and transparency in government.
    U.S. aid to Egypt across all sectors is targeted to strengthen 
Egyptian actors and institutions that support democratic principles, 
transparency and offer access to government services inclusively to 
Egyptian citizens. USAID works with the Government of Egypt on 
institutional reform initiatives in several sectors in order to improve 
transparency, accountability, and access. For example, to support more 
inclusive economic growth--essential for a stable and democratic 
Egypt--the Agency works with public and private actors to strengthen 
the enabling environment to allow Egyptian firms, particularly smaller 
ones, to take full advantage of profit opportunities in the market. At 
the request of the Government of Egypt, USAID also supports 
decentralization of the Egyptian public sector through work reforming 
Ministry of Finance and Ministry of Planning systems to increase 
transparency and allow for inclusion of Egyptian citizens at the local 
levels, including in budget oversight.This program seeks to identify 
reform leaders in the legal sector in order to build capacity and 
provide Egyptian citizens improved access to justice.
    Support for a vibrant civil society is a cornerstone of any strong 
democracy, and an important priority across the USG, in line with 
President Obama's Stand with Civil Society agenda. USAID works to 
empower Egyptian civil society actors across all sectors of its 
assistance programs, including in education, economic development and 
health. Education programming supports the active leadership role of 
parents in communities through parent teacher associations which allow 
for engagement and advocacy with schools and the government. Through a 
one-stop-shop model piloted by USAID and managed by Egyptian business 
associations, businessowners can register businesses with local 
government in a transparent and efficient manner, which minimizes 
opportunities for corruption. USAID also supports advocacy groups 
working to facilitate the enabling environment for small and medium 
entrepreneurs.
    All of this work helps the USG build productive relationships with 
key public and private actors while supporting the foundations for an 
inclusive, democratic society. If confirmed as Administrator, I will 
ensure USAID's continued commitment to promoting stability through 
fostering rapid, inclusive, and sustainable economic growth and 
essential democracy and governance principles in Egypt.
On Cuba
    Question. Recent media reports indicate that the Cuban Government 
has objected to the use of free Internet and the training of 
independent journalists, pursuant to USAID's democracy programs, at the 
U.S. Interests Section in Havana. Moreover, that this is one of the 
current obstacles in the establishment of diplomatic relations.

   a. Can you ensure the committee that the legally mandated 
        U.S. democracy programs will not be restricted or readjusted 
        pursuant to the ongoing negotiations with the Cuban Government?
   b. Can you ensure the committee that the legally mandated 
        U.S. democracy programs will not be subject to any preapproval 
        or collaborative process with the Cuban dictatorship?

    Answer. As I mentioned in my testimony, I remain committed to 
programs that promote democracy, empower civil society, and foster 
independent media in Cuba. As you know, the Agency helps facilitate the 
free flow of uncensored information to, from, and within the island, as 
well as provide connectivity to the Internet for the millions who 
remain without access.
    USAID works to promote free expression by supporting independent 
journalists around the world, particularly in closed countries where 
freedom of the press is lacking or independent journalists are under 
threat.
    USAID democracy programs in closed societies around the world, 
including in Cuba, are not and will not be subject to preapproval by 
governments.

    Question. As you are aware, Section 109 of the LIBERTAD Act 
authorizes the use of funds ``to support democracy-building efforts for 
Cuba.'' These include:

    (1) Published and informational matter, such as books, videos, and 
cassettes, on transitions to democracy, human rights, and market 
economies, to be made available to independent democratic groups in 
Cuba.
    (2) Humanitarian assistance to victims of political repression, and 
their families.
    (3) Support for democratic and human rights groups in Cuba.
    (4) Support for visits and permanent deployment of independent 
international human rights monitors in Cuba.

   Can you ensure the committee that none of these funds 
        authorized for ``democracy-building efforts'' will be used to 
        support business promotion activities, of any sort, in Cuba?

    Answer. USAID will continue with its traditional program areas of 
humanitarian assistance to political prisoners, marginalized groups, 
and their families, support for civil society and human rights, and the 
free flow of uncensored information to, from and within the island.
    It is my understanding that the Agency does not anticipate 
supporting any new programs focused on business promotion activities. 
If confirmed, I commit to continuing to work with your office as well 
as others in the Congress to ensure the effectiveness and impact of 
these programs.
Supplementary question
    Question. Do you believe that USAID has a role to play in 
supporting a democratic transition in Cuba? If so, what types of 
programs in Cuba would you support as Administrator?

    Answer. My understanding is that USAID will continue to support 
efforts to promote democracy in Cuba, which is in keeping with the 
USG's enduring objective--the emergence of a democratic, prosperous, 
and stable Cuba.
    If confirmed as Administrator, I will support programs for 
democracy, civil society, and independent media in Cuba. These programs 
are consistent with the administration's desire to empower the Cuban 
people to exercise their fundamental civil and political liberties by 
providing humanitarian assistance and support to civil society, and 
through promoting the increased flow of information to, from, and 
within Cuba.
    If confirmed, I commit to continuing to work with your office and 
others in the Congress to further our shared goal of enabling the Cuban 
people to freely determine their own future.
On family planning
    Question. If confirmed, can you guarantee there will be no change 
in USAID's policy toward family planning services? In particular, 
continued strict adherence to the Helms amendment?

    Answer. As you know, this is a complex issue and there are deeply 
held views among a diverse array of stakeholders. This administration 
and I are committed to improving the health and safety of women and 
girls around the globe, including survivors of sexual violence. If 
confirmed, I can guarantee that I will listen to your concerns.
Supplementary question
    Question. Can you clarify your views on existing law? If confirmed, 
will you faithfully execute the law as it pertains to the Helms 
amendment?

    Answer. Let me assure you that, if confirmed as Administrator, I 
will listen to your concerns, I will consult with you and other Members 
of Congress, and I will faithfully execute the law across the full 
range of my responsibilities, including all laws pertaining to 
restrictions on the use of foreign assistance funds.
Supplementary question
    Question. Please elaborate.

    Answer. If confirmed, I will ensure that USAID fully abides by U.S. 
law, including the Helms amendment, which precludes USAID from using 
its resources to pay for the performance of abortion as a method of 
family planning or to motivate or coerce any person to practions.

                               __________
               administrator-designate smith's responses 
                   to questions from senator menendez
    Question. U.S. Assistance is not a blank check, especially not to 
the Palestinian Authority. I am concerned that our assistance seems to 
continue as usual, when the reality is that Palestinian leaders will 
still not commit direct negotiations for a two-state solution and even 
undermine them through maneuvers at the U.N. and the International 
Criminal Court.

   What will be your approach to U.S. assistance for the 
        Palestinian Authority and how you will address this with your 
        Israeli and Palestinian counterparts, if confirmed? What 
        changes can I expect to see in how we are reprogramming our 
        assistance in FY15 to make clear that this is not business as 
        usual?

    Answer. Let me begin by saying that the administration is deeply 
troubled by Palestinian action at the ICC and we continue to voice our 
opposition to further actions to both the Palestinians and the 
international community.
    I understand that USAID, in conjunction with the State Department, 
continues to review U.S. assistance to the Palestinians. In FY 2014, I 
understand that a majority of USAID assistance for the West Bank and 
Gaza went to programs that directly support the Palestinian people, 
including humanitarian assistance following the conflict in Gaza. In FY 
2015, USAID programs will focus on sectors that the administration 
believes support our national interest and benefit average Palestinians 
such as education, healthcare and water infrastructure programs.
    Building the institutions of a viable future Palestinian state is a 
core U.S. national security objective and the long-term focus of our 
programs. The administration continues to believe that U.S. assistance 
to the Palestinian people is an important tool in promoting regional 
stability, economic development, and increased security for both 
Palestinians and Israelis.

    Question. Last year Congress unanimously passed the Ukraine Freedom 
Support Act, which authorized assistance in support of democracy, civil 
society, and energy security to Ukraine and throughout in the region. 
The bill authorized $50 mil to help improve Ukraine's energy security; 
$20 mil to strengthen civil society, support independent media, and 
reduce corruption; $10 mil for Russian language broadcasting throughout 
the region; and $20 mil to support democracy and civil society in 
Russia. I would urge the appropriators to fully fund these efforts as 
we look to bolster Ukraine in the face of Russian aggression. I've seen 
reports that there is some apprehension, especially in Europe, but 
perhaps within our own government, to provide more robust assistance to 
Ukraine for fear that it will fall victim to endemic corruption. As the 
lead on this important legislation, I am supportive of this critical 
assistance but it must be held accountable.

   How will you work to ensure that our assistance to Ukraine 
        is accountable and transparent?

    Answer. Ukraine remains the USAID'S top priority in the Europe and 
Eurasia region. The Agency continues to allocate resources to support 
the reforms that the Ukrainian Government and civil society have 
prioritized, including anticorruption, local governance and 
decentralization, and deregulation and competitiveness of the private 
sector, especially agriculture and energy reform. USAID integrates 
anticorruption activities into every project design in Ukraine. For 
example, anticorruption measures are included in programs to support 
the judiciary, education, health/pharmaceutical procurement, e-
governance, permitting, financial disclosure, and energy.
    USAID is starting to see progress on implementation of 
anticorruption reforms in Ukraine. More than a dozen key pieces of 
legislation have been passed, including laws to establish the National 
Anti-Corruption Bureau (NABU) and the National Anti-Corruption 
Prevention Agency (NAPC). The Ukrainian Government is in the process of 
standing up these two agencies, which are critical to fighting 
corruption.
    USAID has bolstered monitoring and independent evaluations in the 
region by organizing monitoring workshops for implementing partner 
staff, and contracting for independent evaluations of its programs to 
ensure intended impact, including three such evaluations in Ukraine 
last year. If confirmed, I will continue to ensure that USAID continues 
to build on its efforts to strengthen monitoring and evaluation of the 
Agency's programs, including in Ukraine.

    Question. In light of the recent news reports of human rights and 
labor rights in Southeast Asia, in particular the modern slavery camps 
along the Thai-Malaysian border, and the anticipated completion of 
negotiations on TPP, please provide an account of any USAID labor 
capacity programs and funding that are currently in place to raise the 
labor standards in Malaysia and Vietnam, anticipated TPP partners, and 
Thailand, a prospective TPP partner.

    Answer. USAID works across the Asia-Pacific region to protect and 
promote fundamental human rights, such as the freedoms of expression 
and assembly, to ensure that citizens have a voice and the ability to 
choose their own leaders and influence the decisions that affect their 
lives. These efforts help ensure that the solutions to the challenges 
facing the region ultimately come from the people of the region.
    The Trans-Pacific Partnership (TPP) offers the United States 
Government an opportunity to make progress in human rights, but to also 
help reduce poverty and promote environmental and labor safeguards in 
the Asia-Pacific, a region that is inextricably tied to our own future 
stability and prosperity.
    In Vietnam, the TPP is both strategically important to U.S. 
Government relations with Vietnam, and also very important to Vietnam's 
own development, as it serves as a force for important reforms and 
improved accountability and transparency. As part of broader TPP-
related assistance, USAID's work complements robust technical 
assistance provided by other U.S. Government entities, such as the 
Department of Labor. USAID provides technical assistance to the 
Government of Vietnam and the legal community to increase understanding 
of TPP commitments including international labor standards and the 
enforcement of laws and decrees in areas such as social dialogue, while 
also supporting civil society efforts. USAID continues to closely 
coordinate with the Office of the U.S. Trade Representative and the 
interagency to assess and identify future labor-related assistance 
needs.
    Additionally, through USAID's Global Labor Program, the Agency is 
supporting labor rights across the broader Asia region through programs 
that work to reduce child labor, improve industrial relations, support 
labor monitoring and training in apparel factories, and promote freedom 
of association and collective bargaining. For example in Cambodia, 
USAID supports union leaders and activists and works to improve working 
conditions and protect freedom of association for vulnerable workers in 
the garment, hotel and hospitality, and construction industries. In 
part due to USAID facilitation, garment worker unions negotiated a 28-
percent increase in the minimum wage that was approved in November 
2014. In addition, a new health project in Cambodia focused on garment 
factory workers will improve worker-management dialogue on factory 
compliance with health standards.
    USAID also works to combat labor trafficking, a significant issue 
for the Asia-Pacific, where incidents of migrants on land and sea in 
need of humanitarian protection remain a serious concern for the U.S. 
Government. The Asia-Pacific region also suffers from the largest 
forced labor and sex trafficking market in the world. USAID is working 
to address these issues on several fronts. Through its assistance to 
regional institutions, the Agency stands ready to help Association of 
Southeast Asian Nations (ASEAN) member states meet the standards for 
protection of victims and other areas outlined in the ASEAN combating 
trafficking in persons convention--expected to be endorsed in November 
2015.
    USAID is also addressing issues surrounding labor trafficking in 
the fishing industry through assistance for repatriation and victim 
support services for fishermen, many of whom have spent years working 
on boats in harsh conditions and without pay. Last month, the Agency 
provided such assistance to 59 Cambodian fishermen, who, along with 
hundreds of others from Cambodia, Burma, Laos, and Thailand, were 
rescued after being stranded in Eastern Indonesia. These efforts will 
be supplemented by the new USAID OCEANS project, which will improve the 
conditions of workers in the fishing industry.
    Finally, through regional programming to counter trafficking in 
persons, USAID is continuing a partnership with the International 
Office of Migration to support a project that builds upon years of 
successful interventions to prevent trafficking in persons through the 
use of social media and information and communications technology. This 
project will raise awareness among the general public and inspire 
social action to prevent the most vulnerable from being trafficked.
    All USAID antitrafficking efforts are closely aligned and 
coordinated with prosecution and law enforcement efforts implemented by 
the U.S. Department of State and other governments.

    Question. In light of the anticipated completion of TPP 
negotiations, are any plans in place to meet increased demands on the 
Global Labor Program?

    Answer. I understand that USAID is currently working with the State 
Department to identify any gaps related to programmatic needs and 
resource requirements in this area, and that new activities will depend 
in part on proposals received in response to a solicitation for a new 
5-year program.
    With respect to the USAID Global Labor Program specifically, since 
2011, the program has supported country programs in 10 countries 
(Colombia, Brazil, Mexico, Honduras, Liberia, South Africa, Cambodia, 
Bangladesh, Ukraine, and Georgia), as well as regional and subregional 
programs in Central America/Latin America, southern Africa, south Asia/
Asia, and Eastern Europe. It has strengthened capacity of trade unions 
and other labor-focused CSOs, supported legal representation for 
workers to promote access to justice, and facilitated advocacy on 
gender, labor migration and countertrafficking. If confirmed, I will 
recommit the Agency to ensuring that there will be no gaps in 
programming, the follow-on will be awarded competitively and budget 
permitting, the program will be funded robustly.

    Question. Please provide an outline of the current Global Labor 
Program activities administered by USAID, by country and expenditure--
no detail requested at this time.

    Answer. USAID has a strong tradition of supporting global labor 
programs designed to foster democratic development and inclusive 
economic growth. The Agency's labor programming directly serves these 
priorities by strengthening independent and democratic worker 
organizations and other labor-related civil society organizations, and 
promoting international labor standards. The current Global Labor 
Program is a 5-year (2011-2016) award implemented by Solidarity Center. 
In FY 2015, USAID is programming $7.5 million for work in nine 
countries and also regional and subregional programs in Latin America, 
southern Africa, and South and Southeast Asia. This funding supports 
four thematic research and advocacy programs on gender, migration and 
trafficking, informal work, and rule of law. This core programming is 
supplemented by an associate award in Colombia, administered by USAID/
Colombia.
    The breakdown of expenditures for FY 2015 by country, region and 
for the global thematic programs is as follows:

          Africa regional: $332,661; Liberia: $325,905; South Africa: 
        $810,249; Americas regional: $187,570; Brazil: $626,200; 
        Mexico: $592,708; Honduras: $392,230; Central America 
        subregional: $91,623; Georgia: $562,262; Ukraine: $654,611; 
        Asia regional: $181,620; South Asia subregional: $207,836; 
        Cambodia: $527,427; Bangladesh: $516,102; Global Technical: 
        $816,343; Operating Expenses: $674,653.

    Question. As you know, the labor and environmental chapters of our 
free trade agreements are particularly important to me and a lot of my 
Senate colleagues. But I am afraid that USAID does not take the issue 
of trade capacity-building seriously enough. With the exception of a 
few places where Congress requires it, USAID has chosen to spend little 
or no money called for in our trade agreements to support labor 
capacity-building. USAID has an opportunity to use trade capacity-
building funds to support labor capacity-building within its Global 
Labor Program, which is currently funded only with democracy, rights, 
and governance funding. I need your assurance that trade capacity-
building funds will be used as we intended--to support labor rights on 
the ground with our trading partners who lack the capacity and 
sometimes the will to take that on themselves. I believe we need to 
step up and use trade capacity-building funds to increase USAID's 
Global Labor Program from its current $7.5 million to $10 million.

   If confirmed, will you agree to work with my office to 
        ensure that the appropriate funds are disbursed and included in 
        the Global Labor Program so that we can implement the labor 
        provisions in our trade agreements?

    Answer. I strongly share your view of promoting labor rights in the 
context of our trade priorities and if confirmed, I would be pleased to 
work with the committee to see that USAID's Global Labor Program is 
responsive to these priorities.
    I understand that in response to congressional direction to provide 
labor capacity-building support for countries in the Western Hemisphere 
with which the United States has free trade agreements, USAID has 
supported projects that have worked with business and civil society to 
strengthen the demand for effective implementation of labor standards. 
USAID's review of these programs confirmed that the Agency's strengths 
are best deployed in demand-side programming with industry to build the 
case for better labor practices that enhance competitiveness, and with 
civil society to strengthen the ability of workers to play a 
constructive role in monitoring and improving labor standards.
    If confirmed, I will review the current level of funding with your 
recommendation in mind and will consult with the committee as we 
determine the appropriate funding levels for current and future global 
labor capacity building.

    Question. The Review on Antimicrobial Resistance, convened by the 
Prime Minister of the United Kingdom, has projected that of all the 
antimicrobial infections, TB is projected to account for a quarter of 
the 10 million deaths expected from these infections due to 
antimicrobial resistance by 2050. The G7 Group of Counties recently 
highlighted Antimicrobial Resistance (AMR) as a top priority, and there 
is growing momentum for a United Nations High-Level Meeting on AMR to 
be held at U.N. Headquarters in New York in 2016.

   Will you commit to working to ensure, if confirmed, that 
        drug resistant tuberculosis (TB) has a prominent place on the 
        agenda of this High-Level Meeting as well as any political 
        declaration coming out of the meeting?

    Answer. Yes, if confirmed as USAID Administrator, I will commit to 
working to ensure drug-resistant TB has a prominent place on the 
agenda. Drug-resistant TB is the one of the largest antimicrobial 
resistance issues globally. If confirmed, I will ensure USAID, as the 
lead U.S. Government agency for international TB, continues to lead 
coordination of U.S. Government global TB efforts, support for global 
initiatives, and support to countries to ensure the further development 
and expansion of quality programs to address TB and drug-resistant TB 
using the best tools and treatments available.

    Question. The White House is leading the development of an 
interagency action plan on drug resistant tuberculosis as a companion 
to the White House's National Action Plan for Combating Antibiotic-
Resistant Bacteria.

   How will USAID's contribution to this plan ensure 
        accountability and specify clear and ambitious milestones for 
        reducing drug resistant TB? Will you commit to ensuring, if 
        confirmed, that the USAID proposal specifies the additional 
        funding necessary to reach these milestones and get ahead of 
        the growing crisis of drug resistant TB?

    Answer. The White House action plan on drug-resistant tuberculosis 
(DR-TB) will have clear and ambitious milestones. The plan will build 
on the current USAID TB portfolio and the Global Fund to Fight AIDS, 
TB, and Malaria. TB grants will accelerate progress toward achieving 
the goals laid out in the U.S. Government TB Strategy and contribute to 
the global effort to end the pandemic. USAID will be leading the 
international part of the plan. It will focus on the development and 
implementation of faster and better quality diagnostics and treatment 
regimens, prioritizing countries with the highest burdens of drug-
resistant TB to maximize limited resources and to end TB as a major 
cause of morbidity and mortality, and as a global health security 
threat. The rollout of new drugs and regimens will be critical to 
saving lives and preventing the development and transmission of deadly 
drug-resistant TB. The next step in this fast-track process is a 
stakeholder forum to ensure input from a wide spectrum of partners. 
While I cannot guarantee future funding levels, I will, if confirmed, 
help ensure USAID continues its efforts to curb the epidemic by 
ensuring good quality TB programs that appropriately treat and cure 
patients of the disease, and prevent the emergence and spread of drug-
resistant strains.

    Question. According to Freedom House, after a decade and a half of 
increasing democratic trends, Africa experienced significant 
backsliding between 2005 and 2013. It is clear the White House is 
interested in, and committed to, maintaining good relations with Africa 
as evidenced by initiatives such as Feed the Future, Power Africa, the 
Young African Leadership Initiative, and the Partnership for Growth, 
which includes two African countries. I am concerned, however, that we 
are not focused enough on traditional development priorities, 
specifically in the area of Democracy and Governance.

   a. To your knowledge, does USAID have a medium to long-term 
        democracy and governance strategy for Africa? If so, what is 
        it, and does it need to be updated or changed in any way in 
        your estimation?
   b. If confirmed, will you commit to work with the committee 
        to devise a robustly funded democracy and governance strategy 
        for Africa?
   c. Elections are an important indicator of the democratic 
        health of a country, but support for elections alone does not 
        build the institutions that support democracy. What has been 
        our approach to ensuring the investments we are making to 
        support key elections in Africa, such as those made in Nigeria 
        earlier this year, are followed by programs and activities that 
        help citizens ensure that those they elect are accountable to 
        the people they are supposed to represent?
   d. If confirmed, will you commit to ensuring that the 
        elections support we provide in Africa is incorporated into a 
        broader governance strategy?

    Answer. USAID has been a leader in supporting the President's 
policies on human rights and democratic governance as fundamental 
objectives of a whole-of-government strategy toward Africa. I am aware 
that during this administration USAID has issued a new strategy on 
democracy, human rights, and governance. The new strategy codifies a 
more holistic approach to USAID's programming in this sector by 
focusing on participation, inclusion, and accountability, while 
elevating human rights and integration of programming across economic 
and social sectors.
    One of USAID's unique strengths is its field-based orientation, in 
which its missions abroad are the incubators and operational nerve 
centers of its work. With policy guidance and technical support from 
Washington, USAID bilateral missions in Africa develop their own 
multiyear country development cooperation strategies. They do so in 
close collaboration with U.S. Embassy counterparts, host-country 
partners, and often with other donors, foundations, and the private 
sector. To my knowledge, virtually every USAID mission in Africa has a 
medium to long-term strategic objective focused on supporting 
democracy, human rights, and governance. These objectives vary 
significantly based on the specific challenges faced in each country, 
while aligning with the new strategy on democracy, human rights, and 
governance. They can also change over time in response to democratic 
breakthroughs or backsliding.
    For example, in Ghana, one of the models of democratic governance 
in Africa, USAID works in close partnership with national government 
officials and civil society to strengthen local district government 
institutions and improve service delivery. In post-conflict countries 
such as the Democratic Republic of the Congo, USAID programs reconcile 
communities separated by war, support key governance reforms, and help 
extend state authority to the people. In Zimbabwe, under constant 
threat of closing political space, USAID and its partners provide 
critical support to human rights defenders and civil society activists 
who are trying to maintain their basic freedoms.
    And in Nigeria, as well as more than a dozen other African 
countries, USAID focuses and concentrates its resources to ensure that 
election assistance is embedded in long-term democracy, rights, and 
governance strategies. Doing so allows USAID to support reformers who 
can seize the window of opportunity provided by free, fair, and 
credible elections to promote policy changes, strengthen governance 
institutions, expand basic freedoms, and improve the systems of checks 
and balances that hold leaders accountable to the people who elected 
them.
    In my estimation, USAID's current process for achieving its 
democracy strategy in Africa is appropriate: setting broad policy and 
strategy goals in Washington, and allowing USAID missions to develop 
their own country-specific responses to achieving those goals, for 
which they are then held accountable. I also believe that USAID's 
election assistance programs are most effective and appropriate as part 
of a holistic democracy, human rights and governance strategy.
    If confirmed, I will make this area one of my priorities and I look 
forward to working with Congress to maximize the impact and 
effectiveness of this program.

    Question. As I am sure you are aware, I have been working with 
State Department and USAID to ensure that our Foreign Service 
adequately represents the diversity of our population. With 18 months 
left in this administration, do I have a commitment from you that you 
will make recruitment and retention of diverse candidates a priority at 
USAID?

    Answer. Recruiting and retaining a diverse and skilled workforce is 
critical to meeting the mission of USAID, and is of great importance to 
me personally. If confirmed as Administrator, I will work with USAID 
leadership to strengthen efforts to ensure that USAID's workforce is 
reflective of our population.
    I am pleased that the 2015 Quadrennial Diplomacy and Development 
Review (QDDR) specifically addresses the need to increase our diversity 
and provides specific focus areas that I fully support. These areas 
include enhancing work requirements for USAID managers about the need 
to foster diversity and inclusion in the workplace, increasing outreach 
to our veterans, sustaining the numbers of fellowships offered, and 
initiating an early identification program, focusing on students from 
underrepresented communities who have an interest in public service.
    USAID is engaging in targeted outreach activities and programs that 
are focused on building a diverse workforce, which I will look to 
support and expand. This outreach is designed to increase the diversity 
of applicants who apply for direct-hire positions at USAID, as well as 
to other qualified applicants who may apply through the Disability 
Employment Program, the Veterans Employment Initiative, and USAID's 
Internship Program.
    The Donald Payne International Development Fellowship Program 
(Payne Fellowship Program) has resulted in three classes of fellows 
with a highly diverse representation. These fellows enter USAID's 
Foreign Service upon completion of the program.
    If confirmed, I will work with USAID leadership to improve 
retention of diverse employees (and all employees) through several 
actions including: (1) increasing training for managers and employees 
tailored specifically to the issues of diversity and inclusion; (2) 
implementing exit interviews and surveys to provide the Agency with 
data regarding why employees resign, as well as their impressions of 
diversity and inclusion at USAID, so that the Agency can take 
appropriate action; and, (3) piloting programs that focus on diversity 
and inclusion, such as the Office of Personnel Management's Diversity 
and Inclusion Dialogue Program.
    If confirmed, I am committed to making recruitment and the 
retention of diverse candidates a high priority of my tenure with 
USAID.

    Question. I am very concerned by the state of civil society in 
Egypt. At a time when analysts are reporting that the suppression of 
nonviolent political dissent in Egypt is now worse than at any time 
during the Mubarak regime, only $5 million out of a total of $150 
million in Economic Support Funds to Egypt is designated for democracy 
and governance in the administration's FY 2016 request. In comparison, 
the administration has requested $47 million for democracy and 
governance programming in Jordan, a country whose population is roughly 
8 percent of Egypt's.

   If confirmed, how would you be able to support democracy 
        and governance in Egypt and counter the erosion of civil 
        society there, given the subject's seemingly low priority in 
        the administration's budget request?

    Answer. USAID resources in Egypt are targeted toward supporting 
democratic principles and civil society across all sectors. The Agency 
works to empower Egyptian civil society actors throughout its 
assistance program, including in education, economic development and 
health. USAID programming works to reinforce democratic principles, 
transparency and provide access to government services by all parts of 
Egyptian society. USAID supports decentralization of the Egyptian 
Government through work reforming the Ministry of Finance and Ministry 
of Planning systems to increase transparency and allow for inclusion of 
Egyptian citizens at the local levels, including in budget oversight. 
This program seeks to identify reform champions in the legal sector and 
provide Egyptian citizens improved access to justice. Education 
programs support the active leadership role of parents in communities 
through parent/teacher associations which allow for engagement and 
advocacy with school principals and local government officials. Through 
a one-stop-shop model piloted by USAID and managed by Egyptian business 
associations, businessowners can register businesses with local 
government in a transparent and efficient manner, which minimizes 
opportunities for corruption. USAID also supports advocacy groups 
working to facilitate the enabling environment for small and medium 
entrepreneurs.
    While advancing certain democracy, rights, and governance issues is 
a challenge in the current environment, USAID is moving forward with a 
significant direct grants program to advance the role of civil society 
in promoting human rights. Civil society organizations are working to 
combat gender-based violence, promote women's empowerment, counter 
trafficking in persons, promote religious tolerance, and support rights 
of people with disabilities. Bilateral programs include support to 
civil society organizations that promote youth empowerment and youth 
engagement in leadership roles in the communities in which they live. 
For example, civil society organizations offer students the opportunity 
to participate in programs that promote youth values of tolerance and 
peace within the Egyptian identity and teach principles of sustainable 
development and citizenship.
    If confirmed as Administrator, I will ensure USAID's continued 
commitment to promoting essential democracy and governance principles 
in Egypt as consistent with President Obama's Stand with Civil Society 
agenda.

    Question. Continued progress in Tunisia's democratic transition is 
critical and economic reform will be essential to the ongoing success 
of that transition. Tunisia needs assistance in building a regulatory 
environment that facilitates both foreign and domestic investment, 
especially in providing access to capital for small- and medium-sized 
enterprises.

   In your view, how can U.S. assistance most effectively help 
        create this environment? If confirmed, how will you prioritize 
        this assistance?

    Answer. I share your interest in ensuring that the U.S. Government 
provides robust and targeted assistance during this critical period in 
Tunisia's history. I believe Tunisia demonstrates great potential for a 
successful transition, and last year, USAID reopened its office in 
Tunis after 20 years--a clear demonstration of the U.S. Government's 
continued support for a democratic Tunisia.
    USAID is supporting the Government of Tunisia's economic reform 
agenda in tax and customs policy which will help create a more 
attractive investment climate for both domestic and international 
investors. During President Caid Essebsi's visit, Secretary of Commerce 
Pritzker convened a roundtable of CEOs from top U.S. corporations, 
including Google, Bechtel, and General Electric. Encouraged by the 
Government of Tunisia's progress, U.S. companies are poised to take 
advantage of investment opportunities in Tunisia. Additionally, USAID's 
work with the Government of Tunisia on customs policy reform will 
advance the implementation of the World Trade Organization's Agreement 
on Trade Facilitation (Bali, 2012) which expedites the movement, 
release and clearance of goods.
    USAID programs support the Tunisian people as they lay the 
foundation for economic prosperity and democratic governance. USAID is 
creating job opportunities for Tunisian youth by helping small- and 
medium-sized enterprises to increase productivity and expand 
employment; and then matching and coaching young Tunisian men and women 
to fill these new jobs. USAID is also providing financing to small- and 
medium-sized enterprises through the Tunisian-American Enterprise Fund.

    Question. Hundreds of thousands of Christians, Yezidis, and other 
religious minorities have been made homeless by ISIL's depravity and 
continue to live as displaced persons without adequate access to 
shelter, food, medical care or education. Many women from these 
communities have been kidnapped and subjected to horrific sexual 
violence.

   If confirmed, how will you work with host governments to 
        ensure that assistance reaches these communities and that 
        survivors of sexual violence at the hands of ISIL are given the 
        help they need to rebuild their lives?

    Answer. USAID strives to include and be sensitive to the needs of 
religious and ethnic minorities in all of its programming. All U.S. 
Government humanitarian assistance is delivered on an impartial basis 
and is open to every household and community in acute need, regardless 
of ethnicity or faith. If confirmed as USAID Administrator, I will 
ensure that the Agency continues to uphold these principles.
    In both Syria and Iraq, USAID humanitarian assistance is provided 
on a countrywide basis and is focused on the populations in greatest 
need who can be reached by the Agency's humanitarian partners. USAID 
has provided over $2 billion in humanitarian assistance for displaced 
Syrians since fiscal year 2012 and nearly $76 million in humanitarian 
assistance for displaced Iraqis since the start of FY 2014.
    In Syria, USAID humanitarian assistance reaches into all 14 
governorates and 63 districts, including those in which religious 
minority communities reside or are hosted as internally displaced 
persons (IDPs). In Iraq, the majority of humanitarian assistance is 
provided to address acute needs among the IDP population in the Iraqi 
Region of Kurdistan (IRK), which accounts for over 40 percent of that 
country's total displaced population. For example, approximately 70 
percent of all humanitarian aid provided by USAID's Office for U.S. 
Foreign Disaster Assistance since FY 2014 has served Iraqi IDPs in the 
IRK--where the majority of displaced Iraqi religious minorities are 
seeking shelter.
    USAID humanitarian assistance inside Syria and Iraq is focused on 
provision to vulnerable IDPs of food and other relief commodities, 
shelter (including repairs), water and sanitation, health care, 
education, protection (including specialized services for women, 
children, and survivors of sexual and gender-based violence), and 
humanitarian coordination and logistics.
    In all its programs in Syria and Iraq, the Agency strives to 
address the protection needs of the most vulnerable--including women, 
girls and boys in displaced communities. For example, in Iraq, USAID 
supports humanitarian assistance programs that both mainstream 
protection and deliver direct, specialized services to vulnerable 
communities.
    Specific activities include recruitment of female health workers, 
to ensure health services are equally accessible for women and girls as 
well as men and boys, mobile ``child-friendly'' spaces and psychosocial 
first aid for traumatized children, emergency aid focused on the 
immediate needs of pregnant women in vulnerable conditions, and 
provision of specialized counseling and referral services to survivors 
of sexual and gender-based violence.
    USAID has also provided funding to the International Organization 
for Migration (IOM) to support its wider protection activities, which 
reached nearly 1 million IDPs in Iraq. As a component of outreach to 
the wider IDP population, this included direct psychosocial support to 
Christian and Yezidi IDPs in transit sites in northern Iraq.
    In those neighboring countries hosting large numbers of displaced 
Syrians and Iraqis, USAID's nonhumanitarian programming also seeks to 
address the needs of religious minority communities within the context 
of the wider crisis. The Agency views inclusion of minorities as a key 
component of advancing democracy and stability.
    For example, I understand that since 2007 USAID has provided over 
$40 million in economic and development assistance directly benefiting 
Iraq's minority communities including Christian, Yezidi, Shabak, and 
Sabean-Mandaean groups. The Agency's Jordan community engagement 
program works with communities hosting Syrian refugees, and, in Egypt, 
USAID works with faith-based organizations to promote religious 
tolerance and diversity.
    In addition, USAID has hosted various delegations of Iraqi 
religious minorities to discuss and coordinate the U.S. Government 
humanitarian response to their displacement as a result of ISIL 
actions. This has included, inter alia, representatives of the 
Assyrian, Chaldean, Orthodox, Catholic, and Yezidi communities. In the 
field, USAID humanitarian assistance teams meet regularly with 
representatives of ethnic and religious minority diaspora and local 
groups serving displaced communities, as well as with international 
partners serving IDPs. They also coordinate closely with the U.N. and 
relevant government institutions in Iraq and those host countries for 
displaced Syrians and Iraqis in order to ensure all IDP communities' 
needs are taken into account.

    Question. In 2011 the Arab Spring protests and calls for nonviolent 
reform offered tremendous hope for the potential of the Middle East 
region. Four years later we face a long, cold winter with many states 
reverting to old bad habits of closing off all avenues for nonviolent 
political expression or economic opportunity. Worse yet, we are facing 
failed, or close to failing, states in Yemen, Libya, and Syria. In the 
face of such unpredictability, instability, and violence the U.S. 
diplomatic presence and USAID field offices have been forced to draw 
down or close. In other areas, governments are actively confronting 
USAID funded programs and projects.

   How are you thinking about U.S. assistance and development 
        engagement in the Middle East and North Africa against this 
        depressing and alarming backdrop? Do we need to change the way 
        we do business, or the missions we pursue, in the region?

    Answer. USAID works with local and international partners to 
address the tremendous needs in the Middle East and North Africa. USAID 
recognizes that capable and accountable governance institutions are 
crucial to the sustainability of our development investments, which is 
why the Agency seeks to integrate democracy, human rights, and 
governance principles and practices across all programming.
    USAID's approach in the Middle East is twofold; the Agency works 
not only with governments, but also at a grassroots level, changing the 
lives of individuals and transforming communities. USAID works closely 
with national governments where that is possible, and where national-
level governance institutions are lacking, at the local level, with 
municipal councils or local civil society, to help meet the immediate 
needs of the people in the region as well as build sustainable local 
governance structures that can support a move to resilient democratic 
societies. Local- and municipal-level governance issues are an 
increasingly important component to USAID's work in the region, 
especially in communities affected by conflict and crisis. Key elements 
in all USAID programs are a deep analysis of the political context, 
supporting citizen engagement in policymaking and service delivery, and 
promoting the rights of all citizens and groups to ensure equitable 
development gains. USAID programs represent a long-term investment in 
the people and communities of the Middle East and North Africa and 
build on the Agency's mission to partner to end extreme poverty and 
promote resilient, democratic societies while advancing our own 
security and prosperity.
    USAID is constantly reassessing the way it does business and the 
specific programs in which it invests. Each country and regional 
program begins with a careful assessment of local needs and capacity 
for reform. Once programs are implemented they are carefully monitored 
and evaluated for effectiveness and lessons learned. Security concerns 
remain a significant challenge, and the security of USAID staff and 
implementing partners is paramount. In places where USAID has no 
direct-hire staff on the ground, the Agency uses local and 
international partners as well as remote management techniques to 
continue and ensure close oversight of USAID programs.
    If confirmed, I look forward to working with the Congress and our 
implementing partners to maximize the efficacy and impact of our work 
in the Middle East and elsewhere throughout the world.

    Question. In response to the question about USAID's contribution to 
the U.S. Government TB strategy, you mentioned that you would ``help 
ensure USAID continues its efforts to curb the epidemic by ensuring 
good quality TB programs that appropriately treat and cure patients of 
the disease, and prevent the emergence and spread of drug-resistant 
strains.'' As its contribution to the interagency action plan on drug-
resistant tuberculosis, the Centers for Disease Control and Prevention 
submitted recommendations that clearly identify the funding needed to 
carry out the activities.

   Has USAID identified funding needs, given the objectives of 
        the plan? If not, why not?
   How meaningful can a strategy be unless resources needs are 
        identified, to enable the agency to not only continue efforts 
        but intensify them and rapidly build country capacity to have a 
        much greater impact on TB?

    Answer. The White House National Action Plan on multidrug resistant 
tuberculosis (MDR-TB) will have clear and ambitious milestones. USAID 
will lead the international component of the plan, building on the 
current USAID TB portfolio and the Global Fund to Fight AIDS, 
Tuberculosis, and Malaria. It will focus on the development and 
implementation of faster and better quality diagnostics and treatment 
regimens, prioritizing countries with the highest burdens of drug-
resistant TB to maximize limited resources and end TB as a major cause 
of morbidity and mortality and as a global health security threat. The 
rollout of new drugs and regimens will be critical to saving lives and 
preventing the development and transmission of deadly drug-resistant 
TB.
    The process includes critical opportunities to receive feedback 
from the broader global health community, including a stakeholder 
forum, on important aspects to include in the plan. Guided by the 
strategy, stakeholder feedback, and data and evidence, USAID will do 
its part to identify the resources needed to implement the plan and 
focus on how to maximize the effectiveness of those resources. However, 
combating TB is a global problem and a shared responsibility that 
requires commitments from other donor partners and countries themselves 
to do more. As I testified, it is also critical to mobilize other 
countries to do more in this area--both with respect to TB and to 
health systems more broadly. If confirmed, I will play a leadership 
role in this regard and ensure that USAID continues its efforts to curb 
the epidemic by ensuring good quality TB programs that appropriately 
treat and cure patients of the disease, and prevent the emergence and 
spread of multidrug resistant strains.

                               __________
               administrator-designate smith's responses 
                    to questions from senator flake
    Question. In addition to the devastating loss of life and breakdown 
of the affected countries' health care systems, we have seen the 
economies of these countries near collapse as economic activity ground 
to a halt, investors and contractors fled, farming ceased, and building 
and maintaining of key infrastructure projects was suspended. As 
private investments in airports, roads, seaports, and electricity 
generation and distribution will be vital to for economic recovery, 
what is USAID doing in these areas to reinvigorate private economies 
that will be necessary for the long-term stability of affected 
countries?

    Answer. Having coordinated the USG's international response to the 
Ebola epidemic while at the National Security Council, I am personally 
committed to working in the Ebola-affected countries to help 
reinvigorate their economies, using both Ebola emergency funds and base 
development assistance funds. If confirmed, I will ensure USAID 
continues these important efforts. Examples of USAID's support to 
revive the economies of the Ebola-affected countries include:

   Through the Power Africa Initiative, USAID is engaging in a 
        variety of areas that will improve electricity generation and 
        distribution.

        USAID/Liberia replicates appropriate scale private models 
            to supply energy to unserved rural areas through the design 
            and build of small-scale facilities that demonstrate 
            renewable energy technologies. This work is buttressed by a 
            cooperative agreement with the National Rural 
            Electrification Cooperative of America (NRECA), which is 
            working with rural communities to manage electrical 
            generation and distribution.
        USAID/Liberia is working to engage in active diplomacy and 
            dialogue with local governments, other donors, and their 
            implementing partners to encourage and facilitate the rapid 
            completion of work on the Mt. Coffee hydropower station; 
            three new power plants to add 38 MW of affordable 
            electricity to the grid; the extension of the West Africa 
            Power Pool; and other key public sector infrastructure 
            projects.
        USAID/Liberia is working with local banks to demonstrate 
            the business case for affordable, sustainable, renewable 
            energy solutions beyond the grid. Furthermore, USAID 
            technical assistance has helped with the development of 
            draft legislation that will allow for the entry of private 
            sector actors in generation and distribution.
        USAID/Guinea is exploring public private partnership (PPP) 
            opportunities in the energy sector in both Guinea and 
            Sierra Leone through collaboration with the member agencies 
            in Power Africa.

   In addition, USAID is supporting efforts to rebuild 
        critical infrastructure in the Ebola-affected countries in 
        order to attract private investment and improve the lives of 
        those impacted by the crisis.

        USAID/Liberia is working to rehabilitate rural farm to 
            market roads and build the capacity of the Ministry of 
            Public Works to maintain them, which will stimulate broader 
            private sector activity in agricultural value chains, 
            including transportation and marketing.
        In all three countries, USAID is supporting investments in 
            digital infrastructure by working with donors and partners 
            to adopt a ``dig once'' strategy for appropriate road 
            construction projects intended to reduce the combined costs 
            of road construction and broadband connectivity access and 
            advancement. Investments in digital infrastructure support 
            roads, airports, seaports, and electricity generation.
        Through advancement in e-payments platforms, USAID/Liberia 
            is working to enable and increase ease of payments for on-
            grid electricity, as well as pay-as-you-go models in all 
            three countries using emergency funds. In order to advance 
            infrastructure, policy reforms are required to support the 
            development of public-private partnerships (PPPs) across 
            all infrastructure. USAID is collaborating with multiple 
            teams and stakeholders to define a combined vision and 
            requirements for the affected country governments in order 
            to catalyze and spur PPPs that will create infrastructure 
            growth.
        USAID/Liberia's efforts to increase access to potable 
            water in three cities will contribute to a healthier and 
            more productive workforce attractive to the private sector, 
            as well as facilitate development of industry and 
            agriculture in those locations.
        USAID/Liberia and partners are completing the construction 
            of 85 kilometers of feeder roads in support of other USG-
            funded agricultural activities designed under the Feed the 
            Future Initiative and food security programs.

   USAID is also actively engaging the private sector to 
        leverage their ideas and encourage private sector investment in 
        the three affected countries.

        USAID recently published two new calls for proposals under 
            its Global Development Alliance that focus on all three 
            countries to prioritize coinvestment with the private 
            sector to harness ideas, capacity, and private resources to 
            bolster economic activities and investments in 
            infrastructure, improve local health systems, and promote 
            global health security, all of which are aimed at 
            accelerating recovery and building resiliency in the West 
            African communities affected by the Ebola epidemic.
        In addition, the Agency seeks to harness capacity and 
            resources from the local, regional, and international 
            private sector around partnerships that strengthen 
            information and communications technology, energy 
            infrastructure, social programming, health care, and 
            education.
        Through the Feed the Future initiative, the Agency is 
            working to engage the infrastructure, and resources of the 
            private sector, foundations, and other partners, including 
            in-country partners, to foster broad-based food security in 
            the short, medium, and long term.
        The PPP strategy in 2015 focuses on reestablishing private 
            sector confidence to resume business operations through 
            continuous communication and updates about market 
            conditions. USAID is also providing technical assistance to 
            help Liberia develop a PPP policy that will attract 
            investment across a range of industry and infrastructure 
            projects.

                               __________
               administrator-designate smith's responses 
                    to questions from senator perdue
On Smith's priorities
    Question. Assuming you are confirmed, you will only have 18 months 
in office once you come into office, and there are certainly a host of 
issues you could dive into. Can you talk about some of these priority 
areas where you would really like to make a change?

    Answer. Should I have the honor of being confirmed, I will pursue 
four priorities.

    (1) If confirmed, I will focus the Agency on programs that are 
achieving results and will be selective about initiating new 
commitments. I will work with Congress to institutionalize successful 
programs, including Feed the Future, Power Africa, and our efforts in 
maternal and child health.
    (2) If confirmed, I will provide the leadership, guidance, and 
tools needed to enable USAID's staff in Washington and the field to 
deliver against our most urgent priorities. This includes expanding the 
Agency's work and impact on democracy, rights, and governance. This 
also means expanding the Agency's impact on human trafficking and 
corruption, laying the groundwork for the success of a critically 
important strategy for Central America, and ensuring an equally 
important transition in Afghanistan.
    (3) If confirmed, I will act quickly to ensure that the Agency 
maintains global leadership and agility in responding to increasingly 
complex humanitarian crises around the world. When a natural disaster 
strikes or a humanitarian catastrophe is imminent, the Agency is and 
should be among the first on the ground to help those in need, and in a 
world rife with crises, I believe it is critical to ensure that the 
Agency remains one step ahead.
    I will also work with this committee and other stakeholders to 
pursue meaningful food aid reform that will enable us to reach more 
people, more quickly, in times of need--all while maintaining our 
historic partnership with U.S. farmers and maritime.
    (4) If confirmed, I will focus on further strengthening the 
institution. That means building on the reform agenda launched by 
Administrator Rajiv Shah. This will involve expanding the capacity of 
the Agency to mobilize resources and engagement from other partners; to 
draw on science, technology, and innovation to address development 
challenges; and to increase investment in effective local solutions.

    Strengthening the institution involves tackling some of the 
management and operational challenges facing an agency that manages 
resources across over 80 countries, often in complex environments. The 
Agency must ensure that American taxpayer dollars are spent 
responsibly. It must identify successful programs, learn from prior 
mistakes, apply lessons learned, and share best practices--all in an 
open and transparent way. If progress is not being made, it must take 
corrective action or terminate projects.
    Strengthening USAID also means supporting and listening to its 
people, both here in Washington and overseas. These are men and women 
with knowledge, institutional memory, and invaluable insight. It is my 
goal to give them the visibility, respect, and gratitude that they 
deserve.
On leveraging partners to make American aid go further
    Question. Ms. Smith, how do you recommend we use our leadership to 
work with other nations to do more?

    Answer. If confirmed, I will encourage other nations to join USAID 
in addressing the world's development and humanitarian challenges--
especially in this time of unprecedented need when no country can--or 
should--singlehandedly meet global demands.
    Leveraging our development resources is a key step to successfully 
achieving USAID's goals as a 21st century development agency. If 
confirmed as Administrator, I will work with USAID leadership to more 
deeply integrate partnership and leveraging of external resources into 
USAID program design and implementation.
    Using U.S. development assistance in a way that catalyzes 
additional financing for development from other countries, the private 
sector, multilateral institutions, and foundations is a key pillar of 
the U.S. approach to development, as is the recognition that 
sustainable development requires host-country buy-in and leadership. 
These elements are embodied in initiatives such as Power Africa and 
Feed the Future. They are also core priorities for the U.S. Government 
heading into the Third U.N. Conference on Financing for Development in 
July.
    I am aware that USAID has progressed substantially over the last 
several years in developing closer coordination with a number of other 
international donors. Sweden, the United Kingdom, and Australia have 
become even more important partners. If confirmed, I will continue to 
support and expand these relationships as a priority.
    At the invitation of President Obama, the Government of Sweden 
recently committed $1 billion to Power Africa, an initiative to double 
access to energy in sub-Saharan Africa. The early success of Power 
Africa--transactions expected to generate more than 4,100 megawatts 
have already reached financial close--played a critical role in 
securing Sweden's commitment. If confirmed, I will ensure that USAID 
uses this power of example to bring in more donors for Power Africa and 
other successful initiatives.
On effectiveness and efficiency of aid
    Question. I certainly understand that if our efforts in assistance 
are a mile wide and an inch deep, we will not be very effective.

   How do you plan to focus in certain areas to make our aid 
        go the furthest?
   What will your methods be for determining where to double 
        down on American aid so we can achieve maximum impact?

    Answer. Focusing resources--both financial and staffing--in 
priority countries is essential for maximum impact. If confirmed as 
Administrator, I will strengthen the Agency's Selectivity and Focus 
process. This process was launched in 2012 in response to Presidential 
Policy Directive (PPD-6), which mandated that the Agency focus 
development efforts by being more selective about the countries and 
sectors in which it works. Since 2010, the Agency's efforts in 
Selectivity and Focus have reduced the number of sectoral program areas 
by 40 percent, enabling country missions to be more focused on top 
priority activities.
    If confirmed as Administrator, USAID will continue to make hard 
choices about how to allocate attention and resources across countries, 
regions, and sectors. Under my leadership, if confirmed, the Agency 
will closely consider issues of fragility and weigh the impact and 
potential savings of investing in resilience. It will continue to 
concentrate resources through better alignment of staffing and funding 
in support of those countries and programs that yield the greatest 
impact. Further, I will continue to strengthen the use of Country 
Development Cooperation Strategies (CDCS) to ensure analysis of changes 
in country situations and status in the medium term, and support 
evaluations and interim Agencywide assessments to inform decisions 
about adjustments in resource allocations.

    Question. A recent Office of Inspector General's report noted that 
Presidential initiatives--not just Congressional Earmarks--are 
stymieing USAID Missions from allocating the correct type of funding to 
meet needs identified in country as the most important. Ms. Smith, as a 
development expert, you know the importance of ``country ownership'' 
and ensuring our assistance programs are actually reflecting the top 
priorities of the countries in which USAID works.

   If confirmed as Administrator, what would you do to ensure 
        that priorities identified at the mission level are 
        incorporated into final budget submissions to Congress and that 
        Presidential initiatives--while important--do not distort the 
        type of assistance USAID ends up providing to countries?

    Answer. I understand that it is a critical priority at USAID to 
ensure that its missions receive the funding they need, despite the 
constrained budget environment in which they operate. If confirmed as 
Administrator, I will continue to refine our planning and strategy 
processes and ensure that mission priorities are integrated into our 
budget development process.
    I believe that it is important to the national security of our 
country that USAID continues to be a global leader in addressing the 
world's most critical development challenges. If confirmed, I will work 
to ensure that these efforts are mutually reinforcing with the local 
priorities specific to a country or region, and reflect the on-the-
ground knowledge and expertise of the Agency's field staff.

    Question. What percentage of your budget is spent on overhead 
versus directed to assistance? Are there efficiencies that can be found 
in overhead savings?

    Answer. Based on my initial briefings, I understand that in FY 
2015, the Agency's Operating Expense (OE) appropriation accounted for 
approximately 6.2 percent of its total program budget.
    I understand that USAID continues to implement ambitious 
operational reforms to improve management processes and achieve 
efficiencies in areas such as information technology, travel, real 
property disposals, insourcing, and space optimization. If confirmed, I 
am committed to reviewing these as well as other areas where we might 
identify additional efficiencies.
On increasing transparency
    Question. USAID has committed to improving transparency in 
government.

   What are your plans for improving the quality and 
        availability of data about USAID spending, so that anyone can 
        trace each dollar right down to the specific project or 
        activity where it is spent?

    Answer. Aid transparency is essential for helping recipient 
governments manage their aid flows, for empowering citizens to hold 
governments accountable for the use of assistance, and for supporting 
evidence-based, data-driven approaches to foreign aid.
    The administration has placed great emphasis on transparency and 
openness across the government and USAID is taking a leading role in 
helping the U.S. Government further its commitment to enhancing aid 
transparency as a way of increasing the efficacy of development efforts 
and promoting international accountability. In October 2014, USAID 
released its first ever Open Data policy and regularly posts datasets 
to www.usaid.gov/data.
    If confirmed as Administrator, I will work with USAID leadership to 
advance efforts that are currently under way to increase the 
transparency of our funding and programming, on both the development 
and humanitarian fronts. In particular, if confirmed, I am committed to 
increasing the number and quality of evaluations posted online, as well 
as regularly posting more and improved data to the International Aid 
Transparency Initiative (IATI) and ForeignAssistance.gov.
On results-driven aid
    Question. Can you tell us what systems should be in place to ensure 
that foreign aid evaluations are used to feed back into the loop? To be 
used to guide program design and policy decisionmaking?

    Answer. USAID has established systems to ensure that quality 
evaluations are undertaken and that results are used for program 
improvements and redesigns. If confirmed as Administrator, I will work 
to elevate the quality and use of monitoring and evaluations in USAID. 
I will also ensure that new officers continue training in evaluation, 
monitoring, and integrating findings to ensure impact.
    It is my understanding that between 2011 and 2014, USAID trained 
over 1,400 USAID staff in sound evaluation methods and practices, 
created templates and tools to support evaluation design and 
performance management plans, and worked with missions to implement an 
approach that allows for collaboration with partners and adaptation of 
projects based on learning. During that time, over 950 evaluations have 
contributed to evidence-based decisionmaking by missions and operating 
units.
    I also understand that USAID is undertaking an independent 
evaluation to examine evaluation utilization across the Agency, which 
will provide rich data on trends and practices in evaluation use. This 
study is due to be completed in September 2015.
    If confirmed, I will focus on this critically important aspect of 
USAID programming and ensure that evaluations are used to inform budget 
decisions, project design changes, and midcourse corrections in 
development programming.

    Question. What steps will you take to ensure that these evaluations 
are high quality and transparent?

    Answer. USAID released an extremely rigorous Evaluation Policy in 
2011, which seeks to ensure high-quality and transparent evaluations. 
The Evaluation Policy established protocols and procedures for ensuring 
that all USAID evaluations are transparently conducted, unbiased, 
integrated into project design, relevant for decisionmaking, 
methodologically sound, and oriented toward reinforcing local capacity.
    It is my understanding that the USAID Evaluation Policy has 
institutionalized several additional safeguards to ensure a commitment 
to unbiased measurement and reporting, as well as to promote 
transparency. For both internal and external evaluations, statements of 
work/terms of reference and draft evaluation reports must undergo a 
peer review, which is aimed at increasing quality and transparency. In 
addition, evaluation team members must submit disclosure of conflict of 
interest forms which are part of the final evaluation report. Lastly, 
findings from external and internal evaluations must be publicly shared 
via the Development Experience Clearinghouse (DEC) online data system.
    If confirmed as Administrator, I will ensure continued 
implementation of this policy and periodic assessments to verify its 
continued effectiveness.
On USAID reforms
    Question. As you know, former USAID Administrator Shah initiated 
reforms in 2010 under a program called USAID Forward. In your view, 
what have been the most lasting results of the USAID Forward reform 
effort?

    Answer. Although the USAID Forward reform agenda was launched by 
former Administrator Rajiv Shah in 2010, I understand that many 
elements of what became USAID Forward were proposed at a conference of 
career Mission Directors that was conducted with the participation of 
senior Agency leadership in November 2009. This early investment in, 
and continuing ownership of, the reforms by USAID's senior career 
officers is a key ingredient for ensuring the sustainability of these 
reforms.
    I believe that through USAID Forward's focuses on results, 
partnership, and innovation, the Agency has significantly strengthened 
its capacity in each of these areas over the past 5 years. USAID now 
has in place a rigorous and transparent process for designing 
strategies and projects while evaluating their impact to achieve 
results in a more focused and selective manner. Its partnership agenda 
has grown substantially, almost doubling the amount of direct work with 
local partners, as well as significantly increasing its partnership 
with the private sector, particularly small businesses. Moreover, USAID 
has greatly increased its emphasis on innovative approaches through the 
use of science, technology, and open innovation through such platforms 
as the Development Innovation Ventures (DIV) and Grand Challenges for 
Development, which have been incorporated into the Agency's Global 
Development Lab. Each of these reforms under USAID Forward is already 
demonstrating a strong, durable impact on USAID's ability to lead the 
international community in achieving sustainable results.

    Question. What further reforms are needed to make USAID more 
effective?

    Answer. While I understand USAID has made significant progress as a 
result of the reform effort launched in 2010, known as USAID Forward, I 
believe that USAID can be more effective if the Agency further 
strengthens its Foreign Service, improves transparency when it comes to 
results, and bolsters local solutions.
    I understand that approximately 50 percent of Foreign Service 
officers (FSOs) have less than 5 years of experience with USAID. If 
confirmed, I will make it a high priority to invest in the professional 
development of new FSOs so they can operate and implement programs 
effectively.
    Second, USAID Forward and its reforms require staff to partner, 
innovate, and deliver results while transparently reporting on foreign 
assistance to Congress, the public, and external stakeholders. If 
confirmed, I will work to streamline these processes to achieve even 
greater effectiveness and continue to strengthen USAID's commitment to 
accountability.
    Third, if confirmed, I will ensure that USAID continues to invest 
in local solutions that achieve sustainable results and build local 
capacity and knowledge. USAID must remain committed to creating the 
conditions whereby countries can lead, resource, and sustain their own 
development.

    Question. In your view, does the recently released 2015 Quadrennial 
Diplomacy and Development Review (QDDR) support ongoing USAID Forward 
reforms?

    Answer. Yes. From the outset of the second QDDR process, USAID 
focused on advancing and institutionalizing the significant initiatives 
and reform efforts already underway, including USAID Forward. The first 
QDDR set in motion USAID Forward, a suite of reforms focused on budget 
management, policy capacity, implementation and procurement reform, 
monitoring and evaluation, innovation, science and technology, as well 
as talent management.
    The 2015 QDDR emphasizes USAID's commitment to a new way of doing 
business that brings partnership, local ownership, innovation, and a 
relentless focus on results to enable transformative change. Through 
the second QDDR, USAID emphasizes and commits further to building on 
partnerships to end extreme poverty, prevent and mitigate conflict, 
counter violent extremism, and work with civil society, religious 
institutions, and indigenous peoples to promote resilient, open, and 
democratic societies.
    I understand that additional USAID Forward reforms supported by the 
2015 QDDR include building a culture of innovation, leadership, and 
learning, as well 
as strengthening the ability to assess risks rigorously and 
comprehensively to strengthen local systems. The QDDR helps 
institutionalize USAID's focus on innovation exemplified by the Global 
Development Lab and incorporate these principles into all programming 
through work on efficiencies in policy, planning, and learning across 
the entire program cycle. The 2015 QDDR also deepens USAID Forward 
reforms by bringing greater rigor to evaluations and harnessing data 
for decisionmaking.
    I am pleased that the QDDR supports ongoing USAID Forward reforms 
that are vital to strengthening the Agency and enhancing the 
sustainable impact of its work. If confirmed as Administrator, I will 
work with the State Department leadership to fully implement the QDDR 
recommendations.
On operating in corrupt nations/safeguarding taxpayer dollars
    Question. USAID conducts operations in many countries experiencing 
instability and conflict as well as countries characterized by corrupt 
practices. What are the agency's greatest challenges with regard to 
physical security in such countries?

    Answer. I understand that USAID has presence in approximately 100 
countries and that, in roughly 35 of those, the threat from terrorism 
is rated high or critical by the Department of State's Bureau of 
Diplomatic Security (DS). I understand that, to supplement the security 
provided by DS, USAID's Office of Security (SEC) provides a variety of 
security resources to USAID Missions. Primarily, these include 
operational security guidance, office building security, armored 
vehicles, emergency communications systems, and physical and technical 
security countermeasures.
    My understanding is that USAID's greatest challenges regarding 
physical security are typically the lack of physical setback (distance) 
and blast pressure from improvised explosive devices. Diplomatic 
facilities are required to have 100 feet of setback, which is difficult 
to achieve as most diplomatic facilities are centrally located within 
congested capital cities. One of the frequently identified challenges 
is the host nation's willingness and capability to protect U.S. 
Government resources. I understand that SEC has developed and 
implemented several programs to mitigate threats to USAID staff and 
implementing partners through Partner Liaison Security Officers (PLSO), 
the Personnel Recovery (PR) Program, and Non-Permissive Environment 
(NPE) training.
    I also understand that the Agency has established an intra-agency 
working group to determine ways in which the Agency could operate more 
effectively in NPEs. USAID defines an NPE country as having significant 
barriers to operating effectively and safely due to one or more of the 
following factors: armed conflict to which the United States is a party 
or not a party; limited physical access due to distance, disaster, 
geography, or nonpresence; restricted political space due to repression 
of political activity and expression; and uncontrolled criminality 
including corruption. The challenges with regard to physical security 
that are faced by officers operating in NPEs vary, but can often 
include a high security threat negatively impacting their ability to 
partner, implement and monitor projects, as well as high stress on 
staff due to the workload and separation from family at unaccompanied 
posts.
    My understanding is that, as a result of these challenges, the NPE 
working group evaluated USAID's presence across the globe and 
designated 18 countries as NPE. Officers transitioning to, and out of, 
these 18 countries will receive tailored training and support beginning 
this summer. Three 3-day courses will be offered to ensure officers 
serving in NPEs are better equipped to program, monitor and evaluate 
projects, as well as enhance attentiveness to staff care and security 
issues. I understand that additional training and field guides are 
planned for 2016, contingent upon additional resources.

    Question. What steps can USAID take to ensure that U.S. taxpayer 
funds are spent as intended in countries where its staff may have 
difficulty directly monitoring its programs, such as Afghanistan, 
Pakistan, and Libya?

    Answer. USAID works in many places around the world where high-
threat environments pose challenges to monitoring and the Agency has 
learned important lessons on how to address those challenges. My 
understanding is that USAID tailors implementation monitoring plans for 
activities implemented in high-threat or nonpermissive environments 
like Afghanistan, Pakistan, and Libya.
    USAID has revised its official policy to address this topic. 
Specifically, its policy (ADS 202.3.6.4) on ``Monitoring in High Threat 
Environments'' holds USAID staff (Contracting Officer's 
Representatives) accountable for ``seeing that the contractors and 
grantees they manage are performing adequately and accomplishing the 
tasks they set out to achieve.'' It further notes that ``in high threat 
environments, USAID recognizes the need to keep mission personnel safe, 
as well as the need to visit project sites and meet with beneficiaries 
of development assistance.'' To ensure sufficient USAID oversight of 
activities, the policy offers alternative monitoring methods such as 
requiring photographic evidence; using third-party monitoring; 
utilizing other U.S. Government agencies; and applying technological 
approaches.
    USAID has learned important lessons over the course of its 
engagement in Afghanistan, and has drawn on experiences in other 
challenging environments--including Iraq, Pakistan, Yemen, Sudan, and 
Colombia--to put in place strong oversight of, and accountability for, 
U.S. assistance funds. Although there are inherent risks in doing 
business in a country like Afghanistan, the Agency prioritizes the 
effective and accountable use of taxpayer dollars and does not assume 
that there is any level of acceptable fraud, waste, or abuse in our 
programs. This means that oversight must be a process of continual 
reexamination of ongoing efforts, and that there must be flexibility to 
adjust to new circumstances as they arise.
    In Afghanistan, USAID has developed a multitiered monitoring 
approach to collect and verify data to inform decisionmaking. By 
collecting and triangulating information from multiple sources, the 
approach helps USAID staff mitigate inherent bias and weaknesses from 
any given source. Each Project Manager gathers and analyzes monitoring 
data from various sources, compares data to ensure confidence in the 
reporting, and use the results to make programmatic decisions. Tiered 
monitoring levels are:

   Tier 1: USG (USAID and other agencies);
   Tier 2: Implementing Partners;
   Tier 3: National Unity Government (internal M&E systems, 
        observation) and other donors;
   Tier 4: Civil society, local organizations, and 
        beneficiaries; and
   Tier 5: Independent Monitoring Contractors.

    Regarding Tier 5, Independent Monitoring Contractors, the Agency is 
incorporating key lessons learned and themes from countries and 
programs around the world that have utilized third-party monitoring in 
environments in which chief of mission personnel face limitations on 
movement, including Iraq, Pakistan, Yemen, and West Bank/Gaza. 
Independent monitoring, however, is not the sole source of monitoring 
data and it cannot take the place of USAID staff as project managers. 
Instead, it is one tool that USAID can use to validate reporting data 
from other sources. Should USAID determine that its multitiered 
monitoring approach cannot provide adequate oversight over project 
activities, it will not hesitate to descope or terminate projects.
    For Pakistan, my understanding is that USAID has procured a new 
monitoring and evaluation program. A core difference from Afghanistan 
is that Pakistan relies heavily upon USAID's traditional performance 
monitoring and oversight practices. While they maintain the capability 
to provide third-party monitors through their recently procurement M&E 
support platform, their primary efforts focus on providing strategic 
direction to the portfolio through studies and evaluations. The 
Pakistan model has components for monitoring, evaluation, and other 
analytic products such as targeted assessments, plus learning, 
capacity-building, and mapping services. Pakistan applies third party 
monitoring in the most difficult regions (FATA) and technically 
challenging projects (Infrastructure).
    I understand that USAID manages its Libya programs through a 
combination of D.C.-based and field-based staff. Foreign Service 
National staff play a critical role in overseeing activities and 
fulfilling monitoring and evaluation requirements. In addition, USAID 
holds regular partners' workshops outside of Libya, in which 
implementing partners and interagency counterparts convene to review 
progress toward program objectives, suggest programming adjustments 
when necessary, and ensure overall program coordination.
    Further, as noted in my response to a previous question, I 
understand an intra-agency working group has been convened to determine 
ways in which the Agency could operate more effectively in 
nonpermissive environments (NPEs). USAID defines an ``NPE country'' as 
having significant barriers to operating effectively and safely due to 
one or more of the following factors: armed conflict to which the U.S. 
is a party or not a party; limited physical access due to distance, 
disaster, geography, or nonpresence; restricted political space due to 
repression of political activity and expression; and uncontrolled 
criminality including corruption. The challenges with regard to 
monitoring that are faced by officers operating in NPEs vary, but can 
often include a high security threat negatively impacting their ability 
to conduct site visits.
    My understanding is that, as a result of these challenges, the NPE 
working group evaluated USAID's presence across the globe and 
designated 18 countries as NPE. Officers transitioning to, and out of, 
these 18 countries will receive tailored training and support beginning 
this summer. Three 3-day courses will be offered to ensure officers 
serving in NPEs are better equipped to program, monitor and evaluate 
projects, as well as enhance attentiveness to staff care and security 
issues. Additional training and field guides are planned for 2016, 
contingent upon additional resources.

    Question. How should USAID address corruption concerns in recipient 
countries?

    Answer. Recognizing that corruption is a growing threat to the 
national security of the United States and its allies, President Obama 
announced the U.S. Global Anticorruption Agenda in 2014. For over two 
decades in numerous international fora, the United States has helped 
develop a strong global consensus that fighting corruption and 
supporting good governance are essential for the development of people, 
markets, and nations. It is now globally recognized--as confirmed by 
the 173 countries that have joined the United States as signatories of 
the United Nations Convention Against Corruption--that corruption 
undermines social cohesion, damages economic growth, distorts public 
services, weakens the rule of law, and erodes property rights.
    If confirmed as Administrator, I will work with USAID leadership to 
strengthen our efforts to combat corruption and promote accountable, 
democratic governance, which will reduce conditions that allow 
conflict, organized crime, and other transnational threats to thrive. 
These efforts include adoption of rigorous fiduciary tools to ensure 
that funds are being well spent, such as the requirements set out by 
the Public Financial Management Risk Assessment Framework (PFMRAF). 
This framework helps ensure that USAID only works with partner 
governments that are equally committed to accountability and an 
empowered civil society. In addition, USAID continues to support long-
term efforts to develop accountable and transparent institutions 
through anticorruption programs, which will ultimately contribute to 
broad-based, equitable growth.
    I am pleased that the Quadrennial Diplomacy and Development Review 
highlighted successful global initiatives, such as the Open Government 
Partnership and the Extractive Industries Transparency Initiative, and 
if confirmed, I look forward to taking full advantage of our 
development resources to promote resilient, democratic societies free 
from corruption.
On aid recipient nations
    Question. How do we encourage countries to take the lead in their 
own development and move them toward graduation from U.S. foreign 
assistance programs?

    Answer. A core aid effectiveness principle is that every country is 
responsible for defining and promoting its own social and economic 
development. A second principle is that external donors provide 
assistance that supports country ownership and aligns with a country's 
development priorities. These aid effectiveness principles were 
initially articulated in the 2005 Paris Declaration and have been 
reaffirmed by the United States Government and every other major 
bilateral and multilateral donor several times since then.
    It is my understanding that these aid effectiveness principles are 
a key factor in shaping the way that USAID develops its country-level 
strategic plans and specific development projects. I understand that an 
important part of developing a Country Development Cooperation Strategy 
(CDCS) is to consult with the partner government and other local 
stakeholders about development priorities and desired results.
    USAID's approach also emphasizes the importance of developing the 
capacity of local actors and local systems responsible for achieving 
and sustaining development outcomes. I understand that the USAID 2014 
policy document Local Systems: A Framework for Supporting Sustained 
Development, emphasizes this approach for reinforcing local 
capabilities to achieve and sustain the developmental benefits desired 
by local populations.
    A commitment to moving countries toward graduation means that USAID 
needs to focus on fewer, higher impact programs and be more selective 
about countries and regions to ensure better and more sustainable 
results. Ultimately, this approach aims to help prepare countries for 
graduation, and ensure that progress is sustained even as assistance is 
phased out. If confirmed as Administrator, I will continue to emphasize 
focus and selectivity and support for local systems that can take the 
lead in local development, and hasten the day when countries can 
graduate from foreign assistance.

    Question. Would you plan to continue successful efforts that 
promote country ownership of their own development?

   How would you invest to increase the impact of successful 
        efforts like the Local Solutions initiative?

    Answer. USAID is committed to creating the conditions whereby 
countries can lead, resource, and sustain their own development, a 
commitment that I share and will prioritize, if confirmed. I agree that 
country ownership--mutually agreed-upon priorities, direct 
implementation through local systems as the default choice, and 
domestic resourcing by local governments, civil society, and the 
private sector--should be at the core of how USAID does business. My 
understanding is that the Agency is delivering on this commitment 
through the following organizational and programmatic reforms, which I 
will prioritize if confirmed:

   The Agency has put in place policies and a program planning 
        process that enable it to project results over a longer 
        timeframe and align its staffing and resources accordingly.
   USAID is ensuring that its country strategies and project 
        designs prioritize and measure sustainability through country 
        ownership, regardless of the sector. This increasingly entails 
        broad local stakeholder involvement in the Agency's planning 
        processes. It also entails analysis (e.g., political economy 
        analysis) and action (i.e., improved governance) on the 
        constraints to sustainability, all of which may not be fully in 
        the Agency's manageable control.
   The Agency has put in place the appropriate controls to 
        prudently invest directly in local governments, civil society, 
        and bolstering the private sector (as relevant) to ensure that 
        those stakeholders are accountable, effective, and can sustain 
        results on their own.
    USAID has introduced new guidance and methodologies for monitoring 
and evaluating project performance. USAID programs are closely and 
actively monitored in-country--including through the use of objective, 
third-party evaluations--to track results at every level (input, 
output, outcome) and to make room for midcourse correction when changes 
are needed. In addition, through the use of rigorous methodologies the 
Agency is able to evaluate the impact of its programs and the extent to 
which outcomes can be attributed to USAID interventions.
    The Agency has almost doubled its Foreign Service staffing to 
increase its ability to engage directly with local governments, civil 
society, and private sector; negotiate policy reforms; leverage the 
local private sector; build capacity; innovate; and manage its 
assistance programs.
    USAID is promoting the mobilization of local resources in countries 
where it works through tax modernization; coinvestments and guarantees 
with the local private sector; budding philanthropy; and alternative 
business models such as social enterprises and social impact 
investment.
Countering violent extremism
    Question. The White House summit on Countering Violent Extremism 
(CVE) devoted significant energy to community-based efforts to decrease 
radicalization and prevent youth and other groups from engaging in 
these movements. USAID is one of the only agencies with its own CVE 
strategy--dating back to 2011.

   What role do you see for USAID in the U.S. Government's 
        increasing efforts to counter violent extremism?
   What kind of policy and resources would the agency need to 
        be able to meaningfully contribute to a decrease in support for 
        violent extremism among at-risk populations, particularly 
        youth?

    Answer. The White House Countering Violent Extremism (CVE) Summit 
and the regional summits have highlighted the value of USAID's approach 
to addressing violent extremism as part of a whole-of-government 
response to terrorist threats worldwide. The 2015 Quadrennial Diplomacy 
and Development Review (QDDR) also highlights USAID's role in 
countering violent extremism. This affirmation and elevation is linked 
to the recognition both in the CVE Summit agendas and the QDDR that to 
be effective, the response to violent extremism cannot focus just on 
security. It also must focus on many of USAID's core areas of work: 
education, economic opportunity, good governance, as well as empowering 
national and local governments, youth, women, community secular and 
religious leaders, civil society, and the private sector.
    It is my belief that the United States needs a broad array of tools 
in its toolkit to counter violent extremism effectively. A key USAID 
role is to focus on the issues that drive people to violent extremism 
and address these problems early by disrupting the momentum and 
overturning the rationale behind violent extremist recruitment while 
reducing local sympathies and support for extremists. These efforts 
complement our Nation's ongoing efforts aimed at reducing the terrorist 
threat to ourselves and our partners.
    I understand that USAID's approach was laid out in its 2011 agency-
level policy, ``The Development Response to Violent Extremism and 
Insurgency.'' The policy is drawn from best practices from several 
years of CVE programming, as well as from research on the factors that 
drive violent extremist recruitment and how development assistance can 
help mitigate these root causes. At its core, USAID's CVE approach is 
founded upon an understanding of the concerns of vulnerable populations 
in areas most at risk to violent extremism, which then allows us to 
work with local community organizations and government officials to 
address those concerns.
    USAID's policy is based upon more than 10 years of experience, 
which demonstrates that flexible resources are required to address 
violent extremism. USAID's approach has concentrated on youth 
empowerment, social and economic inclusion, media and messaging, 
improved local governance and in some cases reconciliation and conflict 
mitigation. Activities are tailored to meet the specific threat levels, 
political environments, and material needs of each community. USAID's 
CVE efforts often target distinct populations, for example at-risk 
young men, and increasingly recognize the unique role of women in 
promoting peace and security. I understand that an evaluation of USAID 
programs in Chad, Niger, Mali, and Kenya has helped affirm both the 
positive role development tools can play in efforts to address violent 
extremism and USAID's approach. It found that these programs have made 
a measurable impact among local populations by undermining support for 
violent extremist rhetoric and activities.
    USAID provides funding for CVE programs out of its current budget 
streams, including Economic Support Funds (ESF), Transition 
Initiatives, Development Assistance (DA), and ESF/Overseas Contingency 
Operations (OCO). In the FY 2016 budget request, the administration 
requested $390 million for the Counterterrorism Partnerships Fund 
(CTPF), which would create a specific funding stream for CVE programs 
to help build on existing efforts. As outlined in the administration's 
FY 2016 budget request, having additional funds that can be utilized in 
a flexible manner is critical to meaningfully address the local drivers 
of extremism and contribute to a decrease in support for violent 
extremism among at-risk populations, particularly youth. Reaching 
individuals and communities before they are radicalized is a key 
component in effectively reducing violent extremism. With the flexible 
funds that the administration requested, our assistance programs would 
be better positioned to program more effectively in these fragile 
communities.
Democracy, rights, governance
    Question. As highlighted in the Department of State's 2015 
Quadrennial Diplomacy and Development Review, efforts to strengthen 
global capacity for good governance and credible elections underpin the 
potential impact of all other types of aid (transparent and open 
democracies can better respond to pandemics, economic challenges, food 
insecurity, gender inequality, and peacekeeping operations).

   As USAID Administrator, how would you improve support to 
        vital democracy and governance programming? I share your 
        commitment to promoting democracy, human rights and governance 
        (DRG). I believe that it is central to development, and an 
        integral part of the U.S. national security strategy.

    Answer. USAID recently issued a new strategy on democracy, human 
rights, and governance, which codifies a more holistic approach to our 
programming in this sector by focusing on participation, inclusion, and 
accountability, while elevating human rights and integration of 
programming across economic and social sectors.
    With respect to funding for these programs, I am pleased that the 
President's FY 2016 request includes a 20-percent increase in 
democracy, human rights, and governance for USAID. If confirmed, I will 
make this area one of my priorities, and I look forward to working with 
Congress to ensure appropriate resources are available for this 
critical area.
    It is important for USAID to be innovative in supporting islands of 
reform--pockets of greater participation and accountability--in 
countries that have yet to break through in implanting democratic 
values, institutions, and processes. It is in these countries that our 
efforts in poverty reduction, human rights and democratic governance 
need to be further joined and more tightly integrated. Our programs in 
health, food security, climate change, economic growth all need to have 
components of citizen participation and government accountability.
    If confirmed, I will ensure that USAID continues to develop the 
evidence base needed to demonstrate successes of these approaches. This 
includes improving measurements and evaluating impact as well as 
improving practices by conducting cross-sector roundtables; creating 
practice guides; and providing funding guidance to the field to enhance 
integrated programming.
Microfinance
    Question. I understand that the E3 Bureau has been reorganized and 
the Office of Microenterprise and Private Enterprise (MPEP) at USAID 
has been renamed and refocused on investment.

   Is USAID still committed to supporting microfinance and 
        microenterprise?
   Particularly, how will USAID continue to reach vulnerable 
        groups, including women with support for microenterprise?

    Congress has repeatedly encouraged USAID to ensure microfinance 
activities target the extreme poor.

    With the reorganize of the MPEP office, who will be in charge of 
ensuring USAID continues to target those most in need?
    If confirmed, as the Administrator, how would you prioritize 
microfinance within USAID?

    Answer. Microenterprise development has become deeply integrated 
throughout USAID's programming and the Agency remains committed to 
support microenterprise. I understand that the realignment and renaming 
of the Microenterprise and Private Enterprise Promotion (MPEP) Office 
in the E3 Bureau is still underway and will have no impact on 
microenterprise programing.
    I understand USAID has been pivotal in shaping the microfinance 
industry, particularly by transforming it into a market-driven model 
that attracts private capital, which has dramatically lessened reliance 
on donor support and has expanded access to financial services for 
millions of poor households in the developing world. It is a prime 
example of USAID partnering with the private sector to find market-
driven solutions to end extreme poverty.
    It is my understanding that while USAID once developed stand-alone 
microenterprise and microfinance projects, these efforts are now 
integrated into other USAID programs in order to advance key 
initiatives, such as Feed the Future, and PEPFAR. I understand that the 
majority of microenterprise activity takes place through USAID Mission-
level obligations, and that during the past year, the vast majority of 
USAID Missions reported involvement in microenterprise development.
    I understand microfinance is now integrated throughout the Agency 
as a means to achieve broader goals, including food security, value 
chain development, improved health and nutrition, access to housing, 
and enterprise development. If confirmed, I will ensure the reorganized 
office will continue these efforts.
    The reorganized office must also provide thought leadership for the 
Agency on effectively engaging and leveraging private capital for 
development? enhance collaboration within USAID and among U.S. 
Government agencies and donor partners; and provide advisory support to 
USAID Missions and Bureaus. Congress will receive notification of this 
realignment before any changes are finalized in the Agency.
    If confirmed, I will ensure the office will continue to fulfill all 
congressional requirements for Microenterprise programming and ensure 
programming targets the extreme poor. I will also ensure that USAID 
will have an office for microenterprise development with a Director, 
and the Office will continue to oversee an annual data call on 
microenterprise obligations, prepare the annual Microenterprise Results 
Report, and maintain a help desk to assist partners in the monitoring 
of their activities. For FY 2015, I understand that USAID's 
Microenterprise Results Report will showcase the continuing role of 
USAID's microenterprise and financial inclusion activities as pathways 
to ending extreme poverty, increasing food security, and building 
resilient households and communities.
Prevention
    Question. Of any of our recent Administrators you would have some 
of the most valuable experience to share on how to ensure we are 
preventing conflicts in Africa and other parts of the world.

   How do you envision reforming USAID to better focus on 
        conflict prevention?

    Answer. As the 2015 Quadrennial Diplomacy and Development Review 
(QDDR) makes clear, development plays a critical role in preventing, 
mitigating, and responding to threats such as instability, armed 
conflict, and the spread of violent extremism in both stable and 
fragile countries. Effective conflict prevention and mitigation is 
essential to avoid the destructive potential of armed conflict to 
reverse development investments.
    Since the September 11 attacks in 2001, USAID has worked to develop 
a sound capacity for assessing and addressing the causes and 
consequences of conflict. I understand that, as the Agency looks 
forward to delivering on the vision set by the 2015 National Security 
Strategy and the QDDR, it will be mindful about how this capacity will 
need to evolve and be strengthened to address new needs and priorities.
    I understand that USAID is also seeking opportunities to strengthen 
funding for conflict and atrocity prevention through funding streams 
such as the Complex Crises Fund and the Transition Initiatives account. 
Doing so gives USAID the flexibility to respond quickly in crises and 
to devote resources where they can have the greatest impact.
    Armed conflicts emerge in fragile states, where long-standing 
challenges to legitimacy and effectiveness weaken state institutions 
and the relationship of people with their governments. One of the 
primary challenges of conflict prevention and mitigation is a long-term 
one--tackling the sources of fragility in countries that are vulnerable 
to conflict. The approach for upstream conflict prevention works to 
build strong, legitimate institutions and political processes in 
fragile countries that are capable of managing internal tensions and 
transnational threats.
    If confirmed, I am committed to ensuring that USAID continues to 
work with counterpart agencies and departments to implement a framework 
for more effective engagement with fragile states. We will work to 
ensure that analysis of root causes is applied to decisionmaking 
processes, and provide guidance on how to achieve results in these 
challenging environments.
    If confirmed, I will also support and promote the New Deal for 
Engagement in Fragile States. The New Deal, endorsed by the United 
States and nearly 40 countries and multilateral organizations in 2011, 
establishes peace and state-building goals and action plans, all of 
which sets a long-term approach to enable countries' transition out of 
conflict. The New Deal focuses on proven areas of need and impact, such 
as inclusive politics, enabling effective and equitable service 
delivery, reforming security and rule of law sectors, and combating 
corruption.

    Question. Under your leadership, would the FY 2017 budget better 
reflect the importance of conflict prevention and include an increase 
in this important type of programming?

    Answer. Effective conflict mitigation and prevention requires 
policy tailored to each country context, careful program implementation 
in close coordination with our partners on the ground, and appropriate 
resourcing. While the administration is still formulating the FY17 
budget request, I understand that USAID requested modest increases in 
FY16 (over FY15 enacted) in some of its core funding accounts. 
Specifically, I understand that this includes slight increases in the 
Bureau for Democracy, Conflict and Humanitarian Assistance (DCHA) core 
funding including for the Complex Crises Fund (CCF), Transition 
Initiatives (TI), as well as the Office of Conflict Management and 
Mitigation (CMM), USAID's analytic shop that is shaping policy in this 
area. CCF, TI, and CMM initiatives will strengthen the response 
capacity of country missions to better address conflict, and the Agency 
anticipates additional funding (Economic Support Funds, Development 
Assistance funds, and other) will be directed toward programming that 
mitigates the causes and consequences of conflict.
    Given the constrained budget environment, I will, if confirmed, 
recognize the need to be prudent and thoughtful in Agency budget 
requests. If confirmed, I look forward to working with Congress to 
ensure appropriate resources are available for this critical area.
Resilience
    Question. Ms. Smith, you have been a leader in the administration 
pushing for better responses to humanitarian emergencies, including 
during the food crises in the Horn and the Sahel. We greatly appreciate 
the previous Administrator and your support for building the resilience 
of communities to withstand shocks and stresses like drought and 
conflict.

   What will you do as AID Administrator to ensure the 
        important work on building resilience continues and is 
        institutionalized within USAID?

    Answer. In 2012, USAID launched its first-ever policy and program 
guidance on ``Building Resilience to Recurrent Crisis,'' which commits 
USAID to put more development focus on the most vulnerable, to build 
the adaptive capacity of these populations, and to improve the ability 
of communities, countries, and systems to manage and mitigate risk. I 
understand that USAID has expanded upon its initial focused resilience 
efforts in Ethiopia, Kenya, Niger, and Burkina Faso and that similar 
efforts are now underway in Somalia, Uganda, Mali, and Nepal.
    If confirmed, I will support the Agency's development of additional 
guidance later this year that reflects resilience challenges and 
opportunities in Asia. As part of the Country Development Cooperation 
Strategy planning processes, the Agency will work to embed resilience 
into overall assistance strategies for focus countries in Africa and 
Asia, as well as other countries where risk and vulnerability are 
prominent threats and undermine development gains. I also commit, if 
confirmed, to maintaining the Agency's long-term investments in 
resilience in the Horn of Africa and the Sahel.
    I understand that USAID's resilience investments are supported by 
bureaus and offices across the agency, including Africa Bureau; Asia 
Bureau; Bureau for Food Security; Bureau for Democracy, Conflict, and 
Humanitarian Assistance; Bureau for Global Health; the General Counsel; 
and Bureau for Economic Growth, Education, and the Environment. If 
confirmed, I commit to sustaining this whole-of-agency effort to build 
resilience to recurrent crises.
Tuberculosis
    Question. As we saw last year with the Ebola crisis, a disease in a 
remote part of the world can quickly become a global problem. Drug 
resistant tuberculosis (TB) has been referred to as ``Ebola with 
wings.'' Drug resistant TB requires a strong U.S. response since it is 
spread simply by coughing, there is no effective vaccine, and the costs 
of treating it are enormous. The latest case to grab the headlines, of 
a young woman from India with XDR TB (Extensively Drug Resistant TB) 
who traveled to the United States, has alarmed the public. USAID's role 
is to help countries improve the quality of care and respond to drug 
resistance, but, for several years in a row, the Obama administration 
has proposed a large cut in USAID's TB budget. The White House has 
stated that it is drafting an Action Plan on drug resistant TB.

   Will this plan be comprehensive at the scale needed to get 
        ahead of drug resistant TB?
   Under your watch, will USAID's TB program get full support?

    Answer. I understand that the White House action plan on drug-
resistant tuberculosis (DR-TB) is currently under development and will 
build on the current USAID TB portfolio and the Global Fund to Fight 
AIDS, Tuberculosis and Malaria TB grants. This will accelerate progress 
toward achieving the goals laid out in the USG TB Strategy and 
contribute to the global effort to end the pandemic.
    I understand that USAID will be leading the international part of 
the plan. It will focus on the development and implementation of faster 
and better quality diagnostics and treatment regimens, prioritizing 
countries with the highest burdens of drug-resistant TB to maximize 
limited resources and end TB as a major cause of morbidity and 
mortality. The rollout of new drugs and regimens will be critical to 
saving lives and preventing the development and transmission of deadly 
drug-resistant TB. I understand the next step in this fast-track 
process is a stakeholder forum to ensure input from a wide spectrum of 
partners.
    I also understand that USAID focuses TB resources through an 
evidence-based exercise that determines the best approach for 
continuation of TB funds based on burden of TB, drug-resistant TB, TB 
coinfection with HIV, and other contributing factors.

   Under your watch, will USAID's TB program get full support?

    Answer. While I cannot guarantee future funding levels, I will, if 
confirmed, help to ensure that USAID continues its efforts to curb the 
epidemic by working closely with partners such as the Global Fund for 
AIDS, TB and Malaria, ensuring high quality TB programs that 
appropriately treat and cure patients of the disease, and prevent the 
emergence and spread of drug-resistant strains. I would support USAID's 
leadership role in its coordination of U.S. Government global TB 
efforts, support for global initiatives, and support to countries to 
ensure the further development of quality programs to address TB and 
DR-TB using the best tools and treatments available.

                               __________
               administrator-designate smith's responses 
                   to questions from senator isakson
    Question. As you know, Sen. Casey and I introduced the Global Food 
Security Act which would formally authorize Feed the Future.

   What are the challenges that Feed the Future has currently 
        and how will you make it stronger in your role as USAID 
        Administrator?

    Answer. First, let me thank you for your support of the Feed the 
Future initiative and the New Alliance for Food Security and Nutrition, 
which have together elevated food security on the global agenda, 
registered direct impact on reducing poverty and improving nutrition, 
and mobilized billions of dollars in direct assistance and private 
resources. In 2013 alone, Feed the Future reached more than 12.5 
million children with nutrition interventions and helped more than 7 
million farmers and food producers use new technologies and management 
practices on more than 4 million hectares of land.
    Among the major challenge we face with respect to Feed the Future 
is closing the gender gap in agriculture. Women are the key players in 
the agricultural sector, but they own fewer assets and have less access 
to inputs (for example, seeds and fertilizer) and services. We have 
made considerable progress in this area, thanks in large part to 
USAID's development of a Women's Empowerment in Agriculture Index, a 
survey-based monitoring tool. If confirmed, I am committed to ensuring 
that FTF uses this data to identify the specific impediments to women's 
empowerment in agriculture (such as lack of control over productive 
assets or access to finance), to develop and implement new programs in 
our focus countries that better integrate women farmers into 
agricultural value chains, and give them greater access to credit, 
inputs, and services.

    Question. Part of what we are trying to accomplish with the Global 
Food Security Act is to make the strategy and processes behind Feed the 
Future more transparent, so that we can more fully understand the 
effectiveness of our government's efforts.

   In the event that you are confirmed before the passage and 
        enactment of the bill, will you commit to making the strategy 
        and process for Feed the Future more transparent?

    Answer. Yes, if confirmed, I will commit to build upon the 
accountability measures in place to make Feed the Future as transparent 
as possible. As you may know, this year FTF is conducting population-
based surveys of 17 of its 19 focus countries, which will document our 
progress in poverty and child stunting reduction, as well as other 
high-level indicators across our geographic implementation zones. In 
addition, I understand that USAID is conducting more than 15 
independent impact evaluations that help show whether positive 
changes--such as increases in farmer income or improvements in 
children's nutritional status--are caused specifically by U.S. 
assistance. If confirmed, I will ensure the reports and data sets from 
these evaluations are made publicly available, along with financial and 
annual country performance data. If confirmed, I will ensure that these 
data sets are provided to the Congress and made public. In addition, it 
is my understanding that in 2016, the Agency will conduct an 
independent external evaluation of FTF that will review all aspects of 
the initiative. If confirmed, I commit to making the results of this 
evaluation public and to instituting any necessary course corrections 
to maximize the impact of this critically important work.

                               __________
               administrator-designate smith's responses 
                     to questions from senator paul
    Question. In a recent GAO report on foreign aid (GAO-15-377), GAO 
recommended that USAID should strengthen accountability for government-
to-government (G2G) assistance. If confirmed, what additional steps 
would you take as USAID Administrator to improve the accountability on 
this form of aid?

    Answer. It is my understanding that USAID has addressed the 
concerns raised in the Government Accountability Office (GAO) report 
regarding its government-to-government (G2G) assistance. I also 
understand that the GAO report commended USAID for completing detailed 
risk assessments and for using audits to further identify areas in 
which a partner country's public financial management practices could 
be strengthened to further ensure capacity to manage USAID funds.
    If confirmed, I will ensure that the Agency continues its efforts 
to build upon the GAO report and its recommendations to strengthen 
accountability for G2G assistance. My understanding is that these 
efforts are focused on fully supporting a more efficient and effective 
enabling environment for USAID's overall Local Solutions initiative, 
including for G2G assistance, and consist of:

   Strengthening and simplifying policies, procedures, 
        templates, and tools to improve accountability;
   Improving risk management techniques, procedures and tools 
        for designing, implementing and monitoring G2G activities;
   Providing the needed support and resources to USAID staff 
        in order to strengthen G2G capacity-building, accountability, 
        and transparency;
   Continuing to improve implementation, timeliness and 
        monitoring of annual financial audits of G2G funds in 
        collaboration with USAID's Office of Inspector General and GAO; 
        and
   Enhancing and coordinating development partner 
        collaboration and harmonization.

    Question. The U.S. taxpayers have given billions and billions of 
dollars to support aid work in Afghanistan over the last decade, yet 
there have been questions on both the accountability and the 
effectiveness of this money. For example, the Special Inspector General 
for Afghanistan Reconstruction (SIGAR) recently has called on USAID to 
respond to allegations that progress data related to Afghan education 
system was falsified.

   If confirmed, what are your top three priorities for 
        improving the accountability and effectiveness for any aid to 
        Afghanistan?

    Answer. Regarding SIGAR's Letter of Inquiry related to data on 
education, I understand that USAID's formal response is due by June 30 
and USAID will share its response with the committee when submitted.
    If confirmed as Administrator, my top three priorities for 
enhancing accountability and aid effectiveness in Afghanistan will be: 
(1) working to ensure full implementation of the accountability and 
sustainability measures already put in place for assistance to 
Afghanistan; (2) working to ensure there is a regular review of our 
existing accountability and sustainability policies in order to 
regularly assess current policies and procedures, develop any new ones 
that may be necessary, implement any new ones that are necessary, and 
communicate those new policies and procedures internally in the agency 
and externally to Congress and others; and (3) working to ensure that 
USAID's culture empowers staff to alert leadership to any significant 
issues disclosed by the Agency's monitoring of projects in Afghanistan, 
or anywhere.
    If confirmed, I will support USAID staff to take action when they 
identify projects in need of such measures.
    USAID has learned important lessons over the course of its 
engagement in Afghanistan, and has drawn on experiences in other 
challenging environments--including Iraq, Pakistan, Yemen, Sudan, and 
Colombia--to put in place strong oversight of, and accountability for, 
U.S. assistance funds. Although there are inherent risks in doing 
business in a country like Afghanistan, the Agency prioritizes the 
effective and accountable use of taxpayer dollars and does not assume 
that there is any level of acceptable fraud, waste, or abuse in our 
programs. This means that oversight must be a process of continual 
reexamination of ongoing efforts, and that there must be flexibility to 
adjust to new circumstances as they arise.
    Operationally, USAID has adjusted its implementation model to 
improve sustainability and meet the challenges presented by changes on 
the ground in Afghanistan, as follows:

   Developing a multitiered monitoring strategy to address 
        reduced mobility and decreased field staff that, along with 
        other monitoring and evaluation efforts, will continue to 
        ensure appropriate oversight of projects;
   Transforming USAID's approach in Afghanistan to one of 
        mutual accountability that incentivizes Afghan reforms by 
        conditioning an increasing percentage of our assistance to the 
        government on progress on reforms and that continues to 
        increase government involvement and ownership of development 
        needs; and
   Focusing on long-term sustainability through implementing 
        three key principles of: (1) increasing Afghan ownership and 
        capacity; (2) contributing to community stability and public 
        confidence in the Government of Afghanistan; and (3) 
        implementing effective and cost-efficient programming.

                               __________


                              NOMINATIONS

                              ----------                              


                         TUESDAY, JUNE 23, 2015

                                       U.S. Senate,
                            Committee on Foreign Relations,
                                                    Washington, DC.
                              ----------                              

Glyn Townsend Davies, of the District of Columbia, to be 
        Ambassador to the Kingdom of Thailand
William A. Heidt, of Pennsylvania, to be Ambassador to the 
        Kingdom of Cambodia
Jennifer Zimdahl Galt, of Colorado, to be Ambassador to 
        Mongolia
Atul Keshap, of Virginia, to be Ambassador to the Democratic 
        Socialist Republic of Sri Lanka and to the Republic of 
        Maldives
Alaina B. Teplitz of Illinois, to be Ambassador to the Federal 
        Democratic Republic of Nepal
David Hale, of New Jersey, to be Ambassador to the Islamic 
        Republic of Pakistan
Sheila Gwaltney, of California, to be Ambassador to the Kyrgyz 
        Republic
                              ----------                              

    The committee met, pursuant to notice, at 9:35 a.m., in 
room SD-419, Dirksen Senate Office Building, Hon. Cory Gardner, 
presiding.
    Present: Senators Risch, Gardner [presiding], Cardin, 
Shaheen, Murphy, and Kaine.

            OPENING STATEMENT OF HON. CORY GARDNER, 
                   U.S. SENATOR FROM COLORADO

    Senator Gardner. This hearing will come to order.
    Let me welcome you all to today's full Senate Foreign 
Relations Committee hearing on nominations.
    I want to thank Senator Cardin for working with this date 
and the witnesses today supporting this important hearing 
today.
    We will have two panels today, the first on nominees from 
East Asia and Pacific region, and then at 11 a.m., Senator 
Risch will take over for a second panel of nominees from the 
South and Central Asia region.
    I first want to welcome all the family members who are here 
today for this distinguished panel this morning.
    In the first panel of witnesses, we will hear from three 
nominees: Mr. William Heidt to be Ambassador to the Kingdom of 
Cambodia; Mr. Glyn Davies to be Ambassador to the Kingdom of 
Thailand; and Ms. Jennifer Galt to be Ambassador to Mongolia.
    I had an opportunity to meet personally with all of these 
well-qualified nominees, and I want to warmly welcome them and 
their families to this hearing today.
    Thailand is the longest standing U.S. ally in Asia. The 
Kingdom of Siam and the United States concluded a Treaty of 
Amity and Commerce in 1833 when our Nation was still in its 
infancy.
    In 1954, modern day Thailand and the United States became 
military allies under the Treaty of Manila, and in 2003, the 
United States designated Thailand as a major non-NATO ally.
    Despite the historically tumultuous domestic politics in 
Thailand, the commercial and military relationship between our 
nations has blossomed. The United States is Thailand's third-
largest bilateral trade partner. Our militaries have averaged 
40 joint exercises per year. We cooperate actively on issues as 
wide-ranging as humanitarian disaster assistance to law 
enforcement to disease control.
    However, the 2014 military coup in Thailand threatens to 
set back the positive trajectory of our relationship unless 
Bangkok moves decisively to restore democracy.
    So I look forward to hearing from Mr. Davies today on how 
we can maintain and grow our strong relationship while exerting 
efforts to see Thailand successfully move back to the 
democratic path.
    Cambodia represents an opportunity for the United States to 
build another long-standing partnership in Southeast Asia. 
After the unparalleled brutality of Pol Pot and the Khmer Rouge 
regime and the civil war that ensued in the 1970s and the 
1980s, Cambodia seems to have finally found a semblance of 
stability and a democratic footing.
    The July 2013 elections and the 2014 power-sharing 
agreement between the ruling Cambodian People's Party and the 
main opposition groups, unified as the Cambodian National 
Rescue Party, are hopeful steps forward, although progress 
remains fragile.
    Cambodia is the poorest country in Southeast Asia with GDP 
at about $2,600 per person, and the country is heavily 
dependent on overseas development assistance, including from 
the United States.
    So I look forward to hearing from Mr. Heidt on moving the 
democratic process forward, but also assisting Cambodia with 
its economic and development challenges.
    Next but certainly not least, we will move to East Asia and 
Mongolia. Sandwiched between two world powers, Russia and 
China, Mongolia has major strategic importance for the United 
States. Since transitioning from socialism to democracy in 
1992, Mongolia has held six direct Presidential elections and 
six direct parliamentary elections.
    The country possesses vast mineral wealth, although 
corruption and economic development remain serious issues in 
that country.
    Despite the difficult geopolitical environment, Mongolia 
has been a strong ally to the United States. Mongolian troops 
were part of the coalition during the Iraq war and continue to 
serve alongside U.S. troops in Operation Enduring Freedom in 
Afghanistan.
    So I look forward to hearing from Ms. Galt on how we can 
strengthen this critical partnership between our nations.
    And now I will turn it over to Senator Cardin for this 
hearing.

         OPENING STATEMENT OF HON. BENJAMIN L. CARDIN, 
                   U.S. SENATOR FROM MARYLAND

    Senator Cardin. Well, Mr. Chairman, first of all, thank you 
for holding this hearing so that we can consider these three 
nominees.
    I want to thank all three of them, as you already have, and 
their families. This is an incredible service to our country 
that you are willing to perform in a place far away from where 
we are today. So we know it is a sacrifice. We know your 
families are making those sacrifices, and we thank you for your 
willingness to represent the United States in these foreign 
policy posts that are strategically important to U.S. security 
and economic interests.
    Glyn Davies is well known to many members of this committee 
for his recent service as the Special Representative for North 
Korea Policy, but he has also served as U.S. Representative to 
the IAEA and senior positions in the East Asia Bureau and the 
Bureau of Democracy, Human Rights and Labor. This experience 
will provide an important background for his service in 
Thailand, if confirmed, particularly given recent events there.
    William Heidt is currently the executive assistant to the 
Under Secretary for Economic Growth, Energy, and the 
Environment at the Department of State, a position which will 
be invaluable given the economic and development opportunities 
we have in Cambodia. Mr. Heidt also has held a senior post in 
Warsaw, at the U.N., Indonesia, and in Cambodia. So he brings a 
great deal of experience to this position.
    And finally, Jennifer Galt, who currently serves as our 
counsel general in China. She has been a senior advisor in the 
Department of Public Affairs and also served NATO, as well as 
previous posts in China and India.
    So, Mr. Chairman, we are very fortunate to have three 
career diplomats before us who have devoted their professional 
life to serve our country. And I thank them again for their 
willingness to serve in three important posts in the United 
States foreign policy.
    You already mentioned Thailand is one of our longest 
friendships, 180 years of cooperation in public health, trade, 
in security and education. But as you also pointed out, the 
recent coups have presented tremendous challenges to Thailand 
and its relationship with the United States. The restoration of 
democratic governance must be our top priority. And I must tell 
you it is taking too long, and we must push for early elections 
so that we can move forward with this democratic country.
    I also want to point out that it is a Tier 3 country in our 
Trafficking In Persons Report and that is unacceptable. So we 
need to continue to push Thailand to do the right thing on 
behalf of ending modern day slavery.
    In Cambodia, they are on a Tier 2 Watch List for 
trafficking. That is unacceptable, and they will need our help 
again in dealing with this. As you pointed out, it is the 
poorest country in the region and has huge challenge, but lots 
of potential, potential in economics. The environmental issues 
are challenging, but there is a great prospect there. And 
certainly expanding their democratic institutions will present 
a full array of opportunities for the U.S. mission in Cambodia.
    And Mongolia. It is one of the youngest democracies. It has 
been supportive of our military operations in Iraq and 
Afghanistan and is a country that is the newest member of the 
OSCE, an organization where I have devoted a good deal of my 
attention.
    So I think all three of the posts offer important strategic 
partnerships with the United States and a great opportunity, 
but also challenge and I look forward to hearing from our 
witnesses.
    Senator Gardner. Mr. Glyn Davies is a career member of the 
Senior Foreign Service and currently serves as senior advisor 
in the Bureau of East Asian and Pacific Affairs at the 
Department of State.
    Previously, Mr. Davies served as Special Representative for 
North Korea Policy; Permanent Representative to the 
International Atomic Energy Agency and the United Nations 
Office in Vienna, Austria; Principal Deputy Assistant Secretary 
and Deputy Assistant Secretary, East Asia and Pacific Affairs 
Bureau; Senior Advisor, Foreign Service Institute Leadership 
Management School; Acting Assistant Secretary, Bureau of 
Democracy, Human Rights and Labor; Deputy Assistant Secretary 
of the Bureau of European and Eurasian Affairs; Political 
Director for the U.S. Presidency of the G8 with rank of 
Ambassador; and Deputy Chief of Mission, U.S. Embassy in 
London, United Kingdom.
    Mr. Davies earned an M.S. at the National War College in 
1995 and a B.S. from Georgetown University in 1979. He has been 
the recipient of numerous Senior Foreign Service performance 
and honor awards, fluent in French.
    Welcome, Mr. Davies and your family. And we look forward to 
hearing your comments this morning.

       STATEMENT OF HON. GLYN TOWNSEND DAVIES, NOMINATED 
          TO BE AMBASSADOR TO THE KINGDOM OF THAILAND

    Ambassador Davies. Thank you, Mr. Chairman, members of the 
committee. Thank you for the chance to appear before you today.
    I am honored to be President Obama's nominee to serve as 
the United States Ambassador to the Kingdom of Thailand. I 
thank both the President and Secretary of State Kerry for their 
support.
    I also thank all members of the committee for this 
opportunity to speak to my qualifications. Throughout my 
career, I have worked to develop the experience to lead my 
colleagues in strengthening America's security and advancing 
its prosperity. If confirmed, serving as chief of mission in 
Bangkok would draw on all of my 36 years as a Foreign Service 
officer.
    My family is my greatest strength. I would like to express 
my love and gratitude to my wife, Jackie; daughters, Ashley and 
Teddie; son-in-law, Chapin; and granddaughters, Josie and 
Cybbie. Josie and Cybbie and my wife and daughter are sitting 
behind me today.
    Thailand and the United States share a long and a deep 
friendship. Thailand is, as you said, our oldest treaty ally in 
Asia. We work together to advance regional security, expand 
trade, improve public health, assist refugees, counter human 
trafficking, illegal narcotics, wildlife trafficking, and 
protect the environment. Few bilateral relationships are as 
broad and beneficial.
    Over the past decade, Thailand's internal political divide 
has polarized Thai society. We do not take sides in this, but 
we do stress our strong support for democratic principles and 
our commitment to our historic friendship with the Thai people.
    Since the coup, the United States has publicly and 
privately made clear our concerns about the disruption of 
Thailand's democratic traditions and the limits placed on civil 
liberties, including freedom of expression and peaceful 
assembly. Democracy can only emerge when the Thai people freely 
and fairly elect their own government. As required by law, the 
United States suspended certain assistance until a 
democratically elected civilian government takes office. When 
that occurs, our relationship can return to its fullest 
capacity.
    Our call for restoring democracy does not advocate for a 
specific constitutional blueprint. That is for Thailand's 
people to decide through an inclusive political process. If 
confirmed, I will support their democratic aspirations.
    Mindful of our long-term strategic interests, we remain 
committed to our security alliance. Thai and U.S. troops fought 
side by side in both Vietnam and Korea, and together we hold 
many bilateral and multilateral exercises, including Asia's 
largest, Cobra Gold. These allow us to increase coordination 
and cooperation to respond to humanitarian and natural 
disasters. We collaborate extensively on public health issues, 
including research on a vaccine for HIV/AIDS.
    The United States is Thailand's third-largest trading 
partner. Our companies are major investors there. Our Embassy 
in Bangkok, supported by our consulate general in Chiang Mai, 
is a regional hub for the U.S. Government and one of our 
largest missions in the world.
    Our people-to-people ties are strong. Thousands of Thai and 
American students study in each other's countries. The Peace 
Corps has been in Thailand for over 50 years. Americans have 
long admired and respected Thailand's traditions and culture. 
His Majesty King Bhumibol has led his people with compassion 
for close to 70 years and has worked tirelessly for their 
advancement.
    Thailand is a founding member and leading voice in all of 
the region's multilateral institutions. We work with Thailand 
and through those bodies to advance regional growth and 
security.
    We also work with government and civil society 
organizations to address human trafficking. If confirmed, I 
will encourage Thailand to take robust action to combat it.
    Thailand has been a key partner on humanitarian issues, 
sheltering thousands of Burmese refugees, as well as the 
Rohingya and vulnerable populations from some 50 nationalities. 
Thailand hosted a regional conference in May on the migrant 
crisis in the Andaman Sea and Bay of Bengal. We stress the need 
to save lives and treat vulnerable migrants humanely. We also 
partner with Thailand to respond to natural disasters such as 
the earthquakes in Nepal earlier this year.
    We care deeply about Thailand and about its people. If 
confirmed, I will work closely with this committee to advance 
our broad range of interests in that country. While we will 
continue to do much with Thailand, we look forward to its 
return to democracy so our joint efforts can reach their 
fullest potential. We believe the Kingdom of Thailand can find 
reconciliation, establish democracy, and fulfill its historic 
destiny as a great and free nation.
    Thank you again for considering my nomination, and I look 
forward to answering your questions.
    [The prepared statement of Ambassador Davies follows:]

               Prepared Statement of Glyn Townsend Davies

    Mr. Chairman and members of the committee, thank you for the 
opportunity to appear before you today. I am honored to be President 
Obama's nominee to serve as the United States Ambassador to the Kingdom 
of Thailand. I thank the President for the confidence he has placed in 
me by putting me forward to the Senate for consideration, and thank 
Secretary of State Kerry for his strong support. I am grateful to all 
the members of the committee for this chance to speak to my 
qualifications and intentions.
    I joined the Foreign Service in 1980, and have sought throughout my 
career to develop the experience and skills to lead interagency 
colleagues in strengthening our country's security and advancing our 
prosperity. If confirmed, serving as Chief of Mission in Bangkok would 
be the culmination of that 36-year effort.
    My family is my greatest strength. I would like to express my love 
and gratitude to my wife, Jackie, daughters Ashley and Teddie, son-in-
law, Chapin, and granddaughters, Josie and Cybbie.
    Thailand and the United States share a long and enduring 
friendship. Thailand is one of our oldest treaty allies in Asia. We 
collaborate on a remarkably wide range of issues, including advancing 
regional security, expanding trade and investment, enhancing public 
health, assisting refugees and displaced persons, countering illegal 
narcotics and wildlife trafficking, fighting transnational crime, and 
protecting the environment. Despite the limitations we have had to 
impose on aspects of our engagement after Thailand's May 2014 military 
coup, few bilateral relationships are as broad and yield as many 
benefits to both countries.
    Over the past decade, Thailand's internal political divide has 
dramatically deepened, polarizing not just the political class but 
society as a whole. We have not taken sides in this debate, but have 
stressed our unwavering support for democratic principles and our 
commitment to our historic friendship with the Thai people.
    Since the coup, the United States has consistently underscored both 
publicly and privately our concerns about the disruption of Thailand's 
democratic traditions and accompanying restrictions on civil liberties, 
including freedom of expression and peaceful assembly. We maintain that 
democracy can only emerge when the Thai people freely and fairly elect 
their own representatives and leaders. As required by law, the United 
States has suspended certain assistance until a democratically elected 
civilian government takes office. When that occurs, our bilateral 
relationship can return to its fullest capacity.
    Our call for the restoration of civilian government, a return to 
democracy, and full respect for human rights, including freedom of 
expression and of peaceful assembly, does not mean we advocate for a 
specific constitutional or political blueprint. Those are questions for 
the Thai people to decide through an inclusive political process that 
allows for an open and robust debate about the country's political 
future. If confirmed, I will continue to support the democratic 
aspirations of the Thai people.
    Mindful of our long-term strategic interests, we nonetheless remain 
committed to maintaining our security alliance. Thai and U.S. troops 
fought side by side during the Vietnam and Korean wars, and together we 
hold many bilateral and multilateral exercises, engagements, and 
exchanges, including Asia's largest multilateral military gathering, 
Cobra Gold. These interactions provide invaluable opportunities to 
increase coordination and cooperation, including on providing 
humanitarian assistance and responding to natural disasters.
    The United States is Thailand's third-largest trading partner, and 
American companies are major investors in Thailand. Our Embassy in 
Bangkok, supported by our consulate general in Chiang Mai, is a 
regional hub for the U.S. Government and remains one of our largest 
missions in the world. We collaborate extensively on public health 
issues, a cornerstone of our bilateral cooperation, including promising 
research on a possible vaccine for HIV/AIDS.
    Our people-to-people ties are strong and growing. Educational 
linkages help thousands of Thai and American students study in each 
other's countries. The Peace Corps has deployed volunteers across 
Thailand for over 50 years. The American people have long admired and 
respected Thailand's rich traditions and culture. His Majesty King 
Bhumibol Adulyadej, the only monarch ever born in the United States, 
has led his people with compassion and integrity for almost 70 years 
and has been a tireless advocate for the advancement of the Thai 
people.
    Thailand is a founding member and a leading voice in all of the 
region's multilateral institutions, including the Association of 
Southeast Asian Nations (ASEAN), the East Asia Summit, the Asia-Pacific 
Economic Cooperation (APEC) forum, and the Lower Mekong Initiative 
(LMI). The United States will continue to work with Thailand and 
through the region's institutions to further our mutual goals of 
stimulating trade and economic growth and promoting regional security.
    We work with the Thai Government to strengthen its efforts to 
address the country's human trafficking problem. We also support civil 
society organizations that help identify and protect victims and 
promote the rights of migrant workers. If confirmed, I will encourage 
Thailand to take robust action to combat human trafficking.
    For many years, Thailand has been an important partner on 
humanitarian issues. It hosted hundreds of thousands of refugees after 
the Vietnam war. Today, Thailand shelters some 110,000 Burmese refugees 
and asylum seekers in nine refugee camps along the Thailand-Burma 
border, as well as the Rohingya and vulnerable populations from some 50 
nationalities. Thailand hosted a regional conference in May on the 
migrant crisis in the Andaman Sea and Bay of Bengal. We continue to 
work closely with Thailand and other affected countries to address the 
sensitive issue of irregular migration with a priority on saving lives 
and urging humane treatment of vulnerable migrants. We also work 
closely with the Thai to respond to natural disasters, including the 
devastating 2008 cyclone in Burma and the earthquakes in Nepal earlier 
this year.
    We care deeply about our bilateral relationship and about the 
people of Thailand. If confirmed, I will work closely with this 
committee to advance our broad range of interests in Thailand. While we 
will continue to do much together, we look forward to its return to 
democracy so that our joint efforts can reach their fullest potential. 
We believe the Kingdom of Thailand can find reconciliation, establish 
democracy, and fulfill its historic destiny as a great and free nation.
    Thank you again for considering my nomination. I look forward to 
answering your questions.

    Senator Gardner. Thank you, Mr. Davies.
    Mr. Heidt is a career member of the Senior Foreign Service 
and currently serves as Executive Assistant, Office of the 
Under Secretary for Economic Growth, Energy, and the 
Environment in the Department of State. Previously, Mr. Heidt 
served the Department of State as Deputy Chief of Mission in 
the U.S. Embassy in Warsaw, Poland; Counselor for Economic and 
Social Affairs, U.S. Mission to the United Nations in New York; 
economic counselor, U.S. Embassy, Jakarta, Indonesia; Special 
Assistant, Office of the Under Secretary for Economic, 
Business, and Agricultural Affairs; also as finance and 
development officer, Embassy Jakarta in Indonesia; and economic 
and commercial officer, U.S. Embassy Phnom Penh, Cambodia.
    Mr. Heidt earned a B.A. at Pennsylvania State University in 
1984 and an M.A. at George Washington University in 1986. His 
awards include Department of State Senior Foreign Service 
performance, superior honor, and meritorious honor, as well as 
joint Department of State and Department of Labor award for 
excellence in labor diplomacy. He speaks fluent Cambodian, as 
well as Polish, Indonesian, and German.
    Welcome, Mr. Heidt, to you, your family and friends.

        STATEMENT OF WILLIAM A. HEIDT, NOMINATED TO BE 
             AMBASSADOR TO THE KINGDOM OF CAMBODIA

    Mr. Heidt. Thank you very much, Chairman Gardner, Ranking 
Member Cardin, and Senator Kaine.
    It is an honor and a privilege to appear before you today 
as the President's nominee to be Ambassador to the Kingdom of 
Cambodia. I am deeply grateful to President Obama and Secretary 
Kerry for the confidence and trust they have placed in me by 
nominating me for this position. If confirmed, I pledge to work 
closely with this committee to advance the United States broad 
range of interests in a peaceful, democratic, and prosperous 
Cambodia.
    I am accompanied today by my wife, Sotie, and son, Allen, 
who are sitting right behind me to my right, and who have 
served overseas tours with me in hot cities and cold ones too, 
ranging from Cambodia, Indonesia, Poland, and New York City.
    I have spent the bulk of my 28-year Foreign Service career 
working on the interlinked challenges of promoting America's 
prosperity overseas and helping developing countries enact the 
policies and build the institutions they need to improve living 
standards, protect the environment, and compete in a global 
economy.
    One of my most memorable Foreign Service tours was in Phnom 
Penh from 1997 to 1999 where I worked on a number of the most 
critical issues facing the country, including illegal logging, 
food security, and building a sustainable garment industry with 
decent and dignified conditions of work.
    Cambodia has changed dramatically since that time. GDP 
growth has exceeded 7 percent annually for the past decade, and 
as a result, the national poverty rate has fallen from well 
over 50 percent in 2000 to 17 percent in 2012. Life expectancy 
has increased substantially as well. If confirmed, I plan to 
make growing the trade and investment relationship between the 
United States and Cambodia a top priority.
    Cambodia's performance on human rights and democracy issues 
has been more uneven. The most recent national elections in 
2013 drew unprecedented public involvement but were also marred 
by allegations of fraud. After a yearlong post-election 
standoff, the ruling party and opposition reached agreements on 
power-sharing in the National Assembly and reforming the 
country's election law and National Election Committee.
    But despite these negotiated agreements, concerns remain 
about provisions that appear to limit the activities of NGOs in 
the democracy area and that open the door for increased 
influence by the Cambodian military and other government 
officials in election campaigns. If confirmed, I will make it a 
priority to work with the government, opposition, and civil 
society to strengthen Cambodia's democratic institutions.
    The building of a vibrant, homegrown civil society is one 
of Cambodia's most impressive achievements since the 1993 Paris 
Peace Accords, but NGOs in Cambodia today face deep uncertainty 
in the form of a draft law on associations and nongovernmental 
organizations that is soon to be considered in the National 
Assembly. Provisions in this draft law would appear to limit 
the activities NGOs may engage in and create burdensome 
registration and reporting requirements for them. The United 
States has spoken about these concerns and the lack of public 
consultations to date on the law. If confirmed, I will work 
closely with civil society and the government to encourage the 
creation of stable and supportive conditions for a vibrant 
civil society in Cambodia.
    Cambodia has also made progress in recent years on several 
crucial humanitarian and justice issues. With assistance from 
the United States Government and a number of NGOs, Cambodia has 
made great strides in reducing child sex trafficking, one of 
the saddest and most pernicious social problems the country has 
faced. The State Department and USAID continue to work with 
Cambodia to reduce labor trafficking, which remains a 
significant problem in Cambodia and its neighbors.
    The United States supports the work of the Khmer Rouge 
Tribunal to help the people of Cambodia find justice and hold 
accountable those most responsible for the atrocities committed 
by the Khmer Rouge. If confirmed, I will work with fellow 
tribunal supporters and the Cambodian Government to ensure that 
the tribunal completes its critical mission.
    The United States supports Cambodia's reemergence on the 
world diplomatic stage and has encouraged it to play an 
independent, principled role in ASEAN and other regional 
institutions. We have supported Cambodia's integration into the 
ASEAN Economic Community and collaborated with it in the Young 
Southeast Asian Leaders Initiative, or YSEALI. Through YSEALI, 
the United States is engaging young Southeast Asians and 
encouraging them to view their country's goals and challenges 
in a regional context. The program has been enormously popular 
in Cambodia, and if confirmed, I will make youth engagement a 
top priority.
    Mr. Chairman, it is fitting to conclude with a few words 
about Cambodia's young people. It is one of the youngest 
nations in Southeast Asia, with 70 percent of the population 
under the age of 30. Young Cambodians today are very favorably 
disposed toward the United States. Like young people 
everywhere, they want good jobs, a chance to engage in the 
political and social life of their country, and the opportunity 
to build a family. They are one of the main reasons I am 
optimistic about the country's future today.
    Mr. Chairman, thank you again for the opportunity to appear 
before the committee today. I would, of course, be happy to 
answer any questions you might have.
    [The prepared statement of Mr. Heidt follows:]

                 Prepared Statement of William A. Heidt

    Chairman Gardner, Ranking Member Cardin, and members of the 
committee, it is an honor and privilege to appear before you today as 
the President's nominee to be Ambassador to the Kingdom of Cambodia. I 
am deeply grateful to President Obama and Secretary Kerry for the 
confidence and trust they have placed in me by nominating me for this 
position. If confirmed, I pledge to work closely with this committee to 
advance the United States broad range of interests in a peaceful, 
democratic, and prosperous Cambodia.
    I am accompanied today by my wife, Sotie, and son, Allen, who have 
served overseas tours with me in Cambodia, Indonesia, and Poland.
    I have spent the bulk of my 28-year Foreign Service career working 
on the interlinked challenges of promoting America's prosperity around 
the world and helping developing countries enact the policies and build 
the institutions they need to, improve living standards for all, 
protect the environment, and compete in the global economy.
    One of my most memorable Foreign Service tours was in Phnom Penh, 
from 1997-99, where I worked on some of the most critical issues facing 
Cambodia--controlling rampant illegal logging, feeding the 10-percent 
of the country who went hungry every dry season, and helping the 
Cambodian Government build a sustainable garment industry with decent 
and dignified conditions of work. I am proud that in 2000, after my 
return from Phnom Penh, I was awarded the joint Department of State--
Department of Labor award for labor diplomacy for my work strengthening 
workers' rights in Cambodia's garment sector.
    Cambodia has changed significantly since that time. Cambodia's GDP 
has grown more than 7 percent annually for the past decade on the 
strength of increased agricultural production, a booming tourism 
industry, investment in real estate and construction, and growth in 
garment exports. As a result, the poverty rate fell from well over 50 
percent in 2000 to just over 17 percent in 2012, and is surely lower 
today. Life expectancy has increased from 67 years in 2006 to 71.2 
years in 2013, due to improved food security and health care. If 
confirmed, I plan to make growing the trade and investment relationship 
between the U.S. and Cambodia a priority. I also hope to advance our 
cooperation on health issues, which make a direct impact on the 
Cambodian people.
    Cambodia's performance on human rights and democracy issues has 
been more uneven than its economic progress. The most recent national 
elections in 2013 drew unprecedented public involvement and were the 
most peaceful in Cambodian history but were also marred by allegations 
of fraud. After a year-long, post-election standoff, the ruling party 
and opposition reached an agreements on power sharing in the National 
Assembly and to reform the country's election law as well as Cambodia's 
National Election Committee, which oversees elections.
    But despite these negotiated agreements, concerns remain, including 
with regard to provisions that appear to limit the activities of 
nongovernmental organizations in the democracy area and open the door 
for increased influence by the Cambodian military and other government 
officials in election campaigns. The United States has a long history 
of supporting Cambodia's democratic development through foreign 
assistance funding and people-to-people contacts. If confirmed, I will 
make it a priority to work with the government, opposition, and civil 
society to strengthen Cambodia's democratic institutions and raise the 
level of public confidence in them. Conducting free and fair communal 
elections in 2017, and national elections in 2018, will be a key test 
for the Government.
    The building of a vibrant, home grown civil society is one of 
Cambodia's most impressive achievements since the 1993 Paris Peace 
Accords ended years of conflict. Cambodian and international NGOs 
deliver crucial social services, educate the public on issues ranging 
from health to information technology, build people-to-people contacts 
with countries around the world, and develop the skills of thousands of 
Cambodian workers. It is no exaggeration to say that NGOs are one of 
Cambodia's finest faces to the world.
    But NGOs in Cambodia today face deep uncertainty in the form of a 
draft Law on Associations and Non-Governmental Organizations that is 
soon to be considered in the National Assembly. Provisions in this 
draft law would appear to limit, in vague terms, the activities NGOs 
may engage in, and create burdensome registration and reporting 
requirements for NGOs. The United States has spoken about these 
concerns, the lack of public consultations to date on the law, and the 
law's overall intent. If confirmed, I will work closely with civil 
society and the Government to encourage the creation of stable, and 
supportive conditions for a vibrant civil society in Cambodia.
    Cambodia has also made progress in recent years on several crucial 
humanitarian and justice issues. With assistance from the U.S. 
Government and a number of NGOs, Cambodia has made great strides in 
reducing child sex trafficking--one of saddest, and most pernicious 
social problems the country has faced. The State Department and USAID 
continue to work with Cambodia to reduce labor trafficking, which 
remains a significant problem in both Cambodia and neighboring 
countries. The United States supports the work of the Khmer Rouge 
Tribunal to help the people of Cambodia find justice and hold 
accountable those most responsible for the atrocities committed by the 
Khmer Rouge. We will continue to work with fellow Tribunal supporters 
and the Cambodian Government to ensure the Tribunal completes its 
critical mission. And as one of the few Asian countries that is party 
to the Refugee Convention, Cambodia has made important progress in 
developing procedures to identify and protect refugees. At the same 
time, if confirmed, I will strongly urge it to apply those protections 
to people seeking asylum on its territory, including the Montagnards 
from Vietnam.
    Cambodia is playing an increasingly active role in the Southeast 
Asia region. The United States supports Cambodia's reemergence on the 
world diplomatic stage, and has encouraged it to play an independent, 
principled role in ASEAN and other regional institutions. We have 
supported Cambodia's integration into the ASEAN Economic Community and 
collaborated with Cambodia in the Young Southeast Asian Leaders 
Initiative or YSEALI. Through YSEALI, the United States is engaging 
with the 65 percent of Southeast Asians under the age of 35 and 
encouraging them to view their countries' goals and challenges in a 
regional context. The program has been enormously popular in Cambodia, 
and if confirmed, I will make youth engagement a priority.
    Mr. Chairman, it is fitting to conclude my testimony with a few 
words about Cambodia's young people. Cambodia is one of youngest 
nations in Southeast Asia with 70 percent of the population under 35. 
Most Cambodians were not even born during the brutal Khmer Rouge period 
and years of civil war, events that continue to define our perceptions 
of Cambodia. Young Cambodians today are very favorably disposed toward 
the United States, and like young people everywhere, want good jobs, a 
chance to engage in the political and social life of their country, and 
the opportunity to build a family. They are one of the main reasons I 
am optimistic about the country's future.
    Mr. Chairman, thank you again for the opportunity to appear before 
you. I would be happy to answer any questions the committee might have.

    Senator Gardner. Thank you, Mr. Heidt.
    And finally, let me extend a special welcome to a fellow 
Coloradan, Ms. Jennifer Zimdahl Galt, our nominee for Mongolia. 
Ms. Galt is a proud graduate of Colorado College in Colorado 
Springs, and her father is a professor emeritus at my alma 
mater of Colorado State University.
    Ms. Galt is a career member of the Senior Foreign Service, 
class of minister counselor, currently serves as principal 
officer at the U.S. consulate general in Guangzhou, China, a 
position she has held since 2012.
    Previously, Ms. Galt served in the Department of State as 
Senior Advisor in the Bureau of Public Affairs from 2011 to 
2012; Public Affairs Advisor at the U.S. Mission to the North 
Atlantic Treaty Organization in Brussels, Belgium; and Deputy 
Director, Office of Public Diplomacy, Bureau of East Asian and 
Pacific Affairs from 2008 to 2010. She also served as public 
affairs officer, U.S. consulate general, Shanghai in China; 
assistant cultural affairs officer, U.S. Embassy in Beijing; 
assistant public affairs officer, U.S. consulate in Mumbai; and 
information officer, American Institute in Taiwan.
    Ms. Galt earned a bachelors of the arts, as I mentioned, 
from Colorado College; M.A. from Johns Hopkins University 
School of Advanced International Studies; and an M.S. from the 
National Defense University.
    She has won numerous awards from both the Department of 
State and earlier from the United States Information Agency. 
She speaks Mandarin Chinese, French, Italian, Spanish, and 
Serbo-Croatian.
    Welcome, Ms. Galt. I look forward to your comments today.

         STATEMENT OF JENNIFER ZIMDAHL GALT, NOMINATED 
                  TO BE AMBASSADOR TO MONGOLIA

    Ms. Galt. Thank you very much.
    Mr. Chairman, Ranking Member Cardin, Senator Kaine, it is 
an honor to appear before you as President Obama's nominee to 
be Ambassador to Mongolia.
    I am deeply grateful for the confidence the President and 
Secretary Kerry have shown in me, and if confirmed, I look 
forward to working closely with this committee to build on the 
already strong ties between the United States and Mongolia.
    My career in the Foreign Service spans 27 years, most of 
them spent in Asia. I joined the Foreign Service out of a 
commitment to serve my country and have consistently sought 
assignments where I felt I could make a difference and 
contribute to advancing an important relationship.
    The love and support of my family has sustained me 
throughout. I would like to take this opportunity to express my 
gratitude to my husband, Fritz, and my children, Phoebe and 
Dylan, who have traveled the globe with me, and to my father, 
Bob Zimdahl, and my brothers, Randy, Bob, and Tom. I am 
enormously proud that my daughter Phoebe, a rising college 
junior, is here with me today.
    This is an exciting year for United States-Mongolia 
relations, as we mark the 25th anniversary of Mongolia's 
decision for democracy, a milestone that the Senate recognized 
in its June 1 resolution. Our partnership has grown stronger 
since then-Secretary Baker first visited the newly democratic 
Mongolia in 1990. As the only former Soviet satellite in East 
Asia to choose democracy, Mongolia is an important model in the 
region and, as the saying goes, punches above its weight on 
issues of strategic interest to the United States, including 
coalition military efforts, peacekeeping, and the promotion of 
democratic principles and values. Our relationship is one of 
shared interests and is characterized by enormous potential.
    There are many opportunities for the United States to 
deepen our partnership with Mongolia. I would like to highlight 
a few where I would focus my attention, should I be confirmed 
as Ambassador.
    Mongolia and the United States share a common interest in 
promoting peace and stability. Mongolia is a stalwart partner 
in Afghanistan and deploys capable peacekeepers wherever they 
are needed, including currently in Sudan and South Sudan. Just 
last week, the United States and Mongolia conducted our yearly 
multinational peacekeeping exercise, Khaan Quest. Mongolia 
demonstrates leadership in international fora to promote 
democracy and human rights, such as the Freedom Online 
Coalition and the Community of Democracies. Mongolia is a model 
of democracy and has demonstrated a willingness to mentor 
others in the region, offering training and exchanges with 
leaders from Burma to Kyrgyzstan. If confirmed, I would welcome 
the opportunity to work with Mongolian officials to advance our 
shared interests in these critical areas.
    Recent high-level engagement in Mongolia has demonstrated 
our commitment to enhancing commercial opportunities for U.S. 
companies. In the last 6 months, we resumed trade and 
investment framework agreement talks, launched a new economic 
policy dialogue, and the Millennium Challenge Corporation began 
the process of developing a second compact with Mongolia. Each 
of these initiatives is an opportunity to expand economic 
growth, model responsible business conduct, promote trade and 
investment, and create opportunities for U.S. companies. The 
Mongolian Government demonstrated its interest in attracting 
foreign investment by signing and ratifying the U.S.-Mongolia 
Transparency Agreement in December 2014. The Mongolian Prime 
Minister is traveling to Washington and New York this week to 
deliver the message that Mongolia is open for business, our 
business.
    Mongolia's recent progress on a major copper and gold mine 
with a Western company signaled to the international community 
its renewed seriousness of purpose in attracting foreign direct 
investment. With large reserves of coal, copper, gold, uranium, 
and other minerals, there are many opportunities for U.S. 
companies in mining and related sectors. If confirmed, I would 
support these opportunities by actively informing potential 
U.S. investors about the investment climate and advocating on 
their behalf.
    I believe that two key components of U.S. support for 
Mongolia's democracy and its independence and leadership in the 
region are engagement with its nascent civil society and 
deepening people-to-people ties. If confirmed, I would continue 
the work of my predecessors in areas such as the rights of 
persons with disabilities. I would, if confirmed, continue our 
robust subnational cooperation as well, including the Alaska-
Mongolia State Partnership and the sister city relationship 
between Ulaanbaatar and Denver in my home State of Colorado. If 
confirmed, I would also look forward to supporting one of our 
largest Peace Corps programs anywhere, with over 150 volunteers 
in country. Peace Corps Volunteers work side by side with 
Mongolians in English teaching, health care, and community 
youth development.
    Mr. Chairman, members of the committee, it would be the 
highest honor for me to serve our country as Ambassador to 
Mongolia. If confirmed, I will do my utmost to ensure that the 
United States delivers on the strategic and historic 
opportunities of the next century of Mongolia's democracy.
    Thank you for considering my nomination, and I look forward 
to your questions.
    [The prepared statement of Ms. Galt follows:]

              Prepared Statement of Jennifer Zimdahl Galt

    Mr. Chairman, Ranking Member Cardin, members of the committee, it 
is an honor to appear before you as President Obama's nominee to be 
Ambassador to Mongolia. I am deeply grateful for the confidence that 
the President and Secretary Kerry have shown in me, and, if confirmed, 
I look forward to working closely with the Senate to build on the 
already strong ties between the United States and Mongolia.
    My career in the Foreign Service spans 27 years, most of them spent 
in Asia. I joined the Foreign Service out of a commitment to serve my 
country and have consistently sought assignments where I felt I could 
make a difference and where I could contribute to advancing an 
important relationship. My career has taken me to the former 
Yugoslavia, Taiwan, India, the U.S. Mission to NATO, and, multiple 
times, to China.
    The love and support of my family has sustained me throughout. I 
would like to take this opportunity to express my gratitude to my 
husband, Fritz, and my children Phoebe and Dylan, who have traveled the 
globe with me, and to my father, Bob Zimdahl, and my brothers Randy, 
Bob, and Tom. My father, in particular, has demonstrated his support by 
visiting us at every overseas post. I am enormously proud that my 
daughter, Phoebe, a rising college junior, is here with me today.
    This is an exciting year for U.S.-Mongolia relations, as we mark 
the 25th anniversary of Mongolia's decision for democracy, a milestone 
that the Senate recognized in its June 1 resolution. Our partnership 
has grown stronger since then-Secretary Baker first visited the newly 
democratic Mongolia in 1990. As the only former Soviet satellite in 
East Asia to choose democracy, Mongolia is an important model in the 
region and, as the saying goes, punches above its weight on issues of 
strategic interest to the United States, including coalition military 
efforts, peacekeeping, and the promotion of democratic principles and 
values. Our relationship is one of shared interests and is 
characterized by enormous potential.
    There are many opportunities for the United States to deepen our 
partnership with Mongolia. I would like to highlight a few areas where 
I would focus my attention, should I be confirmed as Ambassador.
    Sustaining our strong partnership across sectors: Mongolia and the 
United States share a common interest in promoting peace and stability. 
Mongolia is a stalwart partner in Afghanistan, and deploys capable 
peacekeepers wherever they are needed, including currently in Sudan and 
South Sudan. In April 2014, the United States and Mongolia signed a 
Joint Vision Statement that articulated the parameters for our security 
relationship, acknowledging the important role Mongolia plays as a 
stabilizing influence in Asia and commending Mongolia's support for 
U.N. peacekeeping operations around the world. Just last week, the U.S. 
and Mongolia conducted our yearly multinational peacekeeping exercise, 
Khaan Quest. Mongolia demonstrates leadership in international fora to 
promote democracy and human rights, such as the Freedom Online 
Coalition, hosting a successful annual conference in May; and the 
Community of Democracies, hosting the Ministerial in 2013. Mongolia is 
a model of democracy and has demonstrated a willingness to mentor 
others in the region, offering training and exchanges with leaders from 
Burma to Kyrgyzstan. If confirmed, I would welcome the opportunity to 
work with Mongolian officials to advance our shared interests in these 
critical areas.
    Strengthening economic ties and creating opportunities for U.S. 
businesses: Recent high level engagements in Mongolia have demonstrated 
our commitment to enhancing commercial opportunities for U.S. 
companies. In the last 6 months, we resumed Trade and Investment 
Framework Agreement talks, launched a new Economic Policy Dialogue, and 
the Millennium Challenge Corporation began the process of developing a 
second compact with Mongolia. Each of these initiatives is an 
opportunity to expand economic growth, model responsible business 
conduct, promote trade and investment, and to create opportunities for 
U.S. companies. Mongolia Government demonstrated its interest in 
attracting foreign investment by signing and ratifying the U.S.-
Mongolia Agreement on Transparency in Matters Related to International 
Trade and Investment (the Transparency Agreement) in December 2014. The 
Mongolian Prime Minister is traveling to Washington and New York this 
week to deliver the message to U.S. companies and Members of Congress 
that Mongolia is open for business, our business.
    Mongolia's recent progress on a major copper and gold mine with a 
Western company signaled to the international community its renewed 
seriousness of purpose in attracting foreign direct investment, which 
has declined 85 percent since 2012. With large reserves of coal, 
copper, gold, uranium, and other minerals, there are many opportunities 
for U.S. companies in mining and related sectors. If confirmed, I would 
support these opportunities by actively informing potential U.S. 
investors about the investment climate and advocating on their behalf. 
I would also continue our efforts to promote a more diversified economy 
in Mongolia and to generate increased commercial opportunities for U.S. 
companies, including support for Department of Commerce efforts such as 
the U.S.-Mongolia Business Forum, which this year will focus on 
agriculture. I would encourage good governance, transparency, and 
responsible business conduct, including through working with the 
Mongolian Government to implement the Transparency Agreement.
    Enhancing civil society and people-to-people ties with Mongolia: I 
believe that two key components of U.S. support for Mongolia's 
democracy and its independence and leadership in the region are 
engagement with its nascent civil society and deepening people-to-
people ties. If confirmed, I would continue the work of my predecessors 
in areas such as the rights of persons with disabilities, where, thanks 
to exchanges between government leaders and civil society, we are 
working with Mongolian parliamentarians on draft legislation that may 
include lessons learned from our Americans with Disabilities Act. I 
would, if confirmed, continue our robust subnational cooperation as 
well, including the Alaska-Mongolia State Partnership, which began with 
cooperation between the Alaska National Guard and the Mongolian Armed 
Forces, and has grown to include economic and social ties. I am 
particularly pleased that Mongolia's ties to the United States also 
include a sister city relationship between Ulaanbaatar and Denver, in 
my home State of Colorado. If confirmed, I also would look forward to 
supporting one of our largest Peace Corps programs anywhere, with over 
150 volunteers in country this year. Peace Corps volunteers work side 
by side with Mongolians in English teaching, health care, and community 
youth development. The efforts of these volunteers--our grassroots 
ambassadors in Mongolia--have been extremely effective.
    Mr. Chairman and members of the committee, it would be the highest 
honor for me to serve our country as Ambassador to Mongolia.
    America's security and prosperity are closely and increasingly 
linked to the Asia-Pacific. One of the most important tasks of American 
statecraft over the next decade is to lock in the increased 
investment--diplomatic, economic, strategic, and military--from the 
administration's sustained rebalance to the region. I welcome the 
opportunity to be on the front lines of this endeavor. If confirmed, I 
will lead a diplomatic mission of approximately 200 U.S. and Mongolian 
employees, representing five agencies. I will do my very best to ensure 
that all members of that community and their families have the 
leadership, security, and support they need to engage on behalf of the 
United States, so that Americans continue to sustain and benefit from 
the growth and dynamism in the Asian region. If confirmed, I will also 
do my utmost to ensure that the United States delivers on the strategic 
and historic opportunities of the next century of Mongolia's democracy.
    Thank you for considering my nomination. I look forward to your 
questions.

    Senator Gardner. Thank you, Ms. Galt, and thanks to all of 
you again for your comments this morning.
    And since I cannot just talk to you the entire time about 
Colorado, we will have to spread out the conversation a little 
bit.
    Mr. Davies, 38 years in the Foreign Service, your 
experience. Thank you for your commitment. What is the biggest 
change that you have seen over that time, starting from your 
first experiences to today in terms of public diplomacy?
    Ambassador Davies. In terms of public diplomacy, I think 
the explosion in--let us call it--the globalization of media 
has been the biggest change. When I came into the Foreign 
Service, the United States of America was reaching hearts and 
minds overseas in very traditional ways, publishing millions of 
copies of magazines for young Indians every month, for 
instance, using radio, touring music stars, and so forth. 
Today, we can reach young people in most countries in their 
shirt pockets through their mobile devices, and it requires a 
much more considered approach to how we get the word out to 
peoples all around the world, in particular young people, about 
America, what it stands for, and why it is that they should 
look to the United States as a friend and ally. So the 
challenge has become much more complex. But I think we are 
making the changes necessary to step up.
    Senator Gardner. And specifically to Thailand, in terms of 
the length of the military coup, do we have any idea how long 
we are looking at this lasting, this military exertion of 
power? Is there a way that the United States can influence the 
length of that or the timing or speed up the reforms for 
democracy, free elections, and sort of adding a third component 
to that with the support and loyalists to the former Prime 
Minister, is it even possible to have free and fair elections 
in Thailand?
    Ambassador Davies. Well, I believe that it is possible for 
Thailand to have free and fair elections. They have done it in 
the past. In recent generations, they have had decades' worth 
of experience of democracy. They can get back to that. The 
current junta, the coup government, claims that that is their 
aspiration. They have set up a very lengthy, somewhat elaborate 
process to get back to it. You are right. The goal post does 
continue to recede. That is a big concern. We want them to get 
back to democracy as soon as possible. We would like to see 
elections very soon.
    But at the end of the day, the truth is this is up to 
Thailand, its leadership, and its people to work out. But I 
have confidence they can do it. And if confirmed, I am going to 
bend every effort to convey to them the views of the United 
States and would encourage them to get back on that democratic 
path.
    Senator Gardner. Thank you.
    Mr. Heidt, Hun Sen has ruled Cambodia since the mid-1990s 
basically without interruption. What do you see as Cambodia's 
likely political future, should Hun Sen move toward retirement? 
Are there scenarios where there could be military interference 
if there is a retirement there as well? What do you do in such 
a scenario?
    Mr. Heidt. Thank you for the question, Senator.
    There has been a lot of stasis at the top of Cambodia's 
ruling elite in the last 20 years. Of course, in 2013, we had a 
very good and meaningful election for Cambodia. It was the most 
open election in Cambodian history. Public participation was 
very broad, very enthusiastic. The opposition party did much 
better than anyone expected and even despite some pretty deep-
seated irregularities in the election process.
    So it left many observers with the feeling that with a 
reformed National Election Commission and some additional 
support from the international community, Cambodia can take 
another step forward in the next election just as they took a 
step forward in 2013. So there is optimism that with continued 
support, we could see a better democratic future for Cambodia.
    I do not deny, of course, that there are also concerns 
about increased military--the possibility under the new law for 
increased military activity in the campaign. That law does 
permit, for the first time in Cambodia, the military and senior 
government officials to be involved. And that is a concern and 
it is something we are going to have to monitor very closely. 
If confirmed, I hope to do that.
    Senator Gardner. You mentioned the opposition party. How is 
the power-sharing arrangement working between the two parties, 
the CPP, the CNRP?
    Mr. Heidt. Senator, that is a $64,000 question with respect 
right now to Cambodia. Both the Prime Minister and Sam Rainsy--
they have both spoken publicly about their desire to start this 
culture of dialogue. The relationship is clearly more 
cooperative than at any time in the 20 years since I have been 
following Cambodia. Of course, as a general rule, we encourage 
dialogue in Cambodia. We think that is very important to have 
constructive dialogue, peaceful dialogue that can help Cambodia 
put forward the reforms and policy changes they need to improve 
the lives of ordinary Cambodians. Whether this new 
collaboration between the two will lead to that kind of genuine 
change, I think it is much too early to say, very honestly, and 
I think it is something that if confirmed--it is definitely 
something we are going to keep a very close eye on.
    Senator Gardner. Thank you, Mr. Heidt.
    Ms. Galt, in your opening remarks, you talked about 
Mongolia being the only former Soviet satellite state that had 
moved or transitioned toward democracy. Yet, in preparing for 
this morning's hearing, the background briefings on Mongolia--
the corruption challenges to--corruption at the local level 
throughout the government. Yet, we have had six Presidential 
elections, open elections there. What more can the United 
States do to address the full transition to a democracy, 
reducing corruption, but strengthening and building democracy?
    Ms. Galt. Thank you, Senator, for your question.
    Indeed, Mongolia is a democracy but it is a young 
democracy, and it shares many of the same challenges as other 
young democracies in terms of solidifying the rule of law.
    And I think there are two areas where we can continue our 
work with Mongolia--and if confirmed, I would look forward to 
doing that--to solidify and strengthen some of their 
institutions to combat corruption.
    One is to support Mongolia's leadership in international 
fora to promote democracy. Mongolia has shown a willingness to 
reach beyond its borders, to export both democracy and 
security. And we continue to work with Mongolia to strengthen 
its own institutions. And recently our increased economic 
engagement is very important in that regard. So with its 
signing of the U.S.-Mongolia Transparency Agreement, Mongolia 
has indicated its willingness to improve its own institutions 
to combat corruption and to combat transnational crime as well. 
Our Trade and Investment Framework Agreement talks and our new 
Economic Policy Dialogue gives us other platforms to talk about 
institutional reforms.
    The Millennium Challenge Corporation is another tool that 
we can use to enhance Mongolia's democratic behavior. MCC 
leadership tells me that based on the successful completion of 
their first compact, they believe very strongly that Mongolia 
has learned many lessons from working with us on the first 
compact. And, if confirmed, I would look forward to working 
with Mongolia and working with the Millennium Challenge as they 
develop a second compact for Mongolia.
    Senator Gardner. Thank you, Ms. Galt.
    Senator Cardin.
    Senator Cardin. Well, thank you, Mr. Chairman.
    Once again, thanks to our witnesses.
    In each of your countries, I think to a large extent the 
success of our mission depends upon us standing strong on the 
principles of our country, the universal principles that we 
espouse on human rights, good governance, anticorruption, 
rights of all individuals. That to me is the bedrock of 
America's foreign policy. And we have seen too many places in 
the world where we have deviated from that commitment. The 
stability that we hoped for did not exist and will not exist.
    So in all three of the countries, there are challenges in 
trafficking in persons. Thailand is probably the worst. It is a 
Tier 3 country, which means that it has failed. There are 
reportedly tens of thousands of victims in Thailand, mainly 
from other countries, that have been trafficked into Thailand 
for labor abuse and for sex trafficking. Obviously, that cannot 
continue.
    It is more of a challenge because in Thailand we are now 
past the 1-year anniversary of this coup, and it was not the 
first coup in modern history. And I must tell you my patience 
is running thin with Thailand. We talk about a commitment to 
early elections, and when a country is operating under a coup 
government, human rights are always going to be challenged, as 
we have seen.
    So, Mr. Davies, I appreciate your view that we cannot 
intercede into the internal politics of a country, and I agree 
with that. But for the sake of the rights of the people of 
Thailand and for U.S. principles, there must be an urgency in 
Thailand proceeding with democratic elections and dealing with 
its human rights issues.
    Your comments?
    Ambassador Davies. Thank you very much, Senator. I think 
that is exactly right, and I think that is job one for anyone 
who represents the United States in Thailand to bring home to, 
in particular, the current leadership the importance of moving 
quickly, swiftly, allowing for, if need be catalyzing an open, 
inclusive public debate about the way forward for Thailand. I 
believe most Thais do want to get back to democracy. The 
situation now is untenable. It is not good for Thailand, first 
and foremost, to have a suspension of civil liberties, of 
sending civilians through the military justice system, and so 
forth.
    So for me, if confirmed, this would be something I would 
lean into very hard to convey publicly and privately the 
importance we attach to Thailand's getting back to the 
democratic path, breaking this cycle of periodic military coups 
that, quite frankly, goes all the way back three generations to 
the 1930s, and putting Thailand once and for all firmly and 
finally on the path to democracy.
    So I take your words to heart. I want to work with this 
committee to see this through. I do think it is not a job that 
is going to be done in an instant because they are a divided 
society, divided polity. There are serious issues that have to 
be worked out domestically, which is why I said it really is, 
first and foremost, their challenge to confront. But I think 
you are right. We have a role to play. They listen to us. We 
are going to use that bully pulpit.
    Senator Cardin. I thank you for your answer. We recognize 
it will not happen overnight. But it is already over a year 
since this coup, and I think many of us expected further 
progress than we have seen to date. So there is an urgency 
here. I just hope that you will transmit that to the people of 
Thailand that we are with them, but we will not tolerate the 
suspension of civil liberties.
    Ambassador Davies. Yes, sir.
    Senator Cardin. Mr. Heidt, in regards to Cambodia, they are 
not doing much better in trafficking. They have been downgraded 
to a Tier 2 Watch List country. As has already been pointed 
out, they are a poor country. So it is interesting that they 
are also designated because they are a source of trafficking. 
So it is not only that they are victimized by people in 
Cambodia being trafficked out, there are also people that are 
being victimized within Cambodia. So they have human rights 
issues.
    The most recent concern that has been expressed by human 
rights groups is the draft NGO law, which has serious concerns 
among NGOs about whether they are going to be able to operate 
effectively in Cambodia.
    So would you just share with me and this committee your 
commitment to advance the basic human rights as our 
representative, if confirmed, in Cambodia?
    Mr. Heidt. Thank you very much, Senator.
    Of course, promoting democracy and human rights has been a 
central part of our program in Cambodia since I was there 
before, ever since the 1993 Paris Peace Accords.
    In the area of trafficking in persons, it is an area where 
U.S. involvement has made a real difference. Both directly and 
through NGOs, we have really been able to give Cambodia good 
assistance, and as a result, as I mentioned in my statement, 
they have been able to make substantial progress on the issue 
of child sex trafficking. Now, that of course, is a 
particularly pernicious and dreadful problem, and I think it is 
important to give them credit for that progress.
    At the same time, as you mentioned, there is a pretty 
substantial labor trafficking problem in Cambodia flowing out 
to neighboring countries, flowing into Cambodia from its 
neighboring countries. And so certainly there is much more work 
to be done in that area in terms of building cooperation 
between Cambodia and the labor-receiving countries, especially 
Malaysia. There is some evidence of complicity by government 
officials in trafficking--that is a big problem--and as well as 
pretty much a complete lack of victim assistance. When we find 
victims of trafficking, the government has very little 
assistance that they can offer.
    So that is something I am absolutely committed to working 
on that issue while I am out there, if confirmed. Like I say, 
it has been an area where we have great success before that we 
can be proud of, and we will continue to do that.
    On the NGO law, of course, the concern there is that it 
will limit the ability of the NGOs to do some of the good work 
they are doing. NGOs perform a range of important services in 
Cambodia. We have spoken to the government and publicly about 
this law, and we frankly do not really see a need for it. We do 
not think there is a giant problem that needs to be solved by 
that. But if the government goes ahead with the law, as it 
appears very likely--they considered it in the National 
Assembly today in Phnom Penh--today, their time. They 
considered it and pushed it out to three separate National 
Assembly commissions. So it appears that it is going to move 
forward. We have counseled them to consult widely when they do 
it and to do it with a light touch, to focus on basic 
transparency issues, not to make it a giant problem that really 
squelches civil society in Cambodia.
    Senator Cardin. Thank you for that answer.
    If the chair would indulge me for one remaining question. 
Ms. Galt, Mongolia is an encouraging country. There is a lot of 
progress being made. They are Tier 2 on trafficking, which 
means they still are not meeting the minimum standards, 
although the report does point out they are making progress. So 
they are moving in the right direction.
    As I also pointed out, they are one of our allies. But 
there are challenges regarding human rights and concerns about 
internationally recognized freedom for its citizens.
    I want to get your response to a potential issue, and that 
is, Mongolia is resource-rich, which can become a problem for a 
country if it is not managed properly. We have seen it as a 
source of corruption in other countries. We have seen it as a 
source of environmental problems in other countries. We have 
seen it as a management issue creating problems with democracy 
in other countries.
    My question is, How will you focus on our mission in 
Mongolia as to how they handle their resources to make sure 
that it is used for the benefit of the people of Mongolia and 
not used as a source that could be problematic for funding 
corruption or antidemocratic principles, which we have seen in 
too many countries around the world?
    Ms. Galt. Thank you, Senator, for that question.
    First, on the issue of trafficking, indeed, this continues 
to be a concern in Mongolia, and if confirmed, I would work 
very closely with the Government of Mongolia to combat 
trafficking. We have a U.S. Government program working with an 
NGO in Mongolia to raise public awareness of trafficking and to 
work to implement Mongolia's antitrafficking legislation. So I 
would look forward, if confirmed, to continuing on that front.
    I think on the corruption issue, you are absolutely right. 
This is very much on Mongolia's radar and very much on our 
radar, as Mongolia develops its rich resources.
    I think there are, again, two areas, as I said earlier, 
where we can continue to work closely with Mongolia to 
encourage them to develop these resources in a transparent and 
fair way. And if confirmed, I would look forward to doing that.
    The first is to continue to support Mongolia's leadership 
in international institutions, including the Freedom Online 
Coalition and the Community of Democracies, which are fora in 
which Mongolia can learn best practices and develop its own 
mechanisms and techniques for combating corruption domestically 
and for developing its economy.
    And then the second is our economic engagement. I think 
through working with the Government of Mongolia to implement 
the recently signed and ratified Transparency Agreement, that 
gives us an opportunity to work very closely with them to 
develop procedures, develop their institutions, and strengthen 
their institutions to combat corruption. So I would look 
forward to working with them on both of those fronts in that 
challenge area.
    Senator Cardin. Thank you.
    Thank you, Mr. Chairman.
    Senator Gardner. Senator Kaine.
    Senator Kaine. Thank you, Mr. Chairman.
    And to the witnesses and to the entire panel of the seven 
nominees who are before us today, I am only able to be here for 
the first panel. And I regret that because you all really do a 
credit to the Nation with your extensive service. And I thank 
each of you and I also thank your families and friends who are 
here and who have been supportive.
    Ms. Galt, if I could start with you since we are just 
finishing on Mongolia, I am fascinated by a number of aspects 
of the country and its transition from socialism to democracy. 
In the Economist Intelligence Unit's Democracy Index for 2014, 
Mongolia was ranked 61st out of 167 countries ranked in the 
democracy index. For a democracy this new that has transitioned 
from socialism, that is not bad. If you dig into the ranking, 
the EIU classifies Mongolia as a, quote, flawed democracy with 
high marks for electoral processes and civil liberties but 
lower marks for government functioning, political culture, 
including a high degree of corruption in local politics.
    Talk a little bit about your game plan if you are confirmed 
to go in and accelerate the pro-democracy trends and 
institutional improvements that Mongolia seems to be embracing 
but that need improvement.
    Ms. Galt. Indeed, if confirmed, this would be one of my 
highest priorities to work closely with the Government of 
Mongolia to strengthen their institutions, to combat 
corruption, and to ensure a transparent and free market for 
external investment. And I think encouraging and advocating for 
more U.S. investment in Mongolia is one way that would be very 
useful and productive for encouraging transparent economic 
engagement in Mongolia. So that is one area that I would work 
on, if confirmed.
    The second area is through the Millennium Challenge 
Corporation. As I mentioned earlier, the Millennium Challenge 
leadership tells me that they feel very strongly that Mongolia 
has learned some good lessons from the first compact. And as 
they are engaging in their constraints analysis and 
negotiations on a potential second compact for Mongolia, that 
will be a tool that we can use to further influence the 
institutional development and to ensure that Mongolia's 
economic growth going forward is equitable and fair.
    I think a third area I mentioned before, but we have an 
ongoing engagement and plans for a new program with the 
Government of Mongolia working with them on justice reform. And 
that is a third area that I would have a high priority in terms 
of improving their institutions and their capacity to handle 
corruption and to deal transparently with corruption issues.
    Senator Kaine. There have been some high profile cases in 
Mongolia where foreign investors have been caught up in 
business disputes and then blocked exit visas to leave, 
Canadians, in one instance an American. Those have to create 
challenges in terms of encouraging more investment.
    What is the progress of the Mongolian Government in putting 
reforms in place that would avoid those unless absolutely 
necessary?
    Ms. Galt. Indeed, I think investor confidence is at a low 
point right now in Mongolia. But, again, our recent economic 
engagement gives me a lot of encouragement as to potential for 
a positive trend in the future. And if confirmed, I would 
continue to work very closely on our economic front. So, number 
one, implementing the Transparency Agreement is one very 
important platform. A second is our Trade and Investment 
Framework Agreement and our Economic Policy Dialogue, which 
gives us another opportunity to engage. And then finally, the 
Millennium Challenge would be another opportunity to grow 
Mongolia's capacity in terms of its institutions. So those 
would be three areas where I would work very closely were I to 
have the opportunity.
    Senator Kaine. And finally, the United States is sort of 
deemed by Mongolia as the most important of its, quote, ``third 
neighbors,'' so the neighbors that do not have borders with 
Mongolia. As we are dealing with so many issues on this 
committee and in the Senate generally about bilateral relations 
between the United States and China and the United States and 
Russia, I am interested in how Mongolia handles those bilateral 
relationships and what are the current kind of temperature in 
those sets of bilateral relationships between Mongolia and 
China and Russia.
    Ms. Galt. Indeed, Mongolia is in a tough neighborhood. I 
think the chairman mentioned sandwiched between Russia and 
China. And so it is very much in Mongolia's interest to 
maintain a stable, positive relationship with both Russia and 
China. Russia and China are both strong economic partners to 
Mongolia. China purchases 80-plus percent of Mongolia's 
resources. So it is very important for Mongolia to maintain a 
positive economic trade and political relationship with China.
    However, I think there is room for all of us. There is room 
for Russia and China and for Mongolia's third neighbors. And so 
if confirmed, I would look forward to continuing to enhance 
both our political, economic, and military partnership with 
Mongolia.
    I think in addition to the strength of those aspects of our 
partnership, U.S. soft power is a very powerful force in 
Mongolia. Young people are looking to the United States. Young 
people are studying English, thanks in large part to our Peace 
Corps over the years, and studying in the United States and 
returning to Mongolia. So the influence of the United States as 
a fellow democracy and our shared values is a powerful offset 
to the economic power of Mongolia's neighbors.
    Senator Kaine. Thank you for those answers.
    One question for you Mr. Heidt. I noticed that there are 
analysts that are concerned about the Prime Minister's 
placement of his sons in political positions of power within 
Cambodia and what that might portend in the future. We have 
seen in other nations around the world, whether it is Libya or 
Egypt or Syria, once a structure of a ruling family starts to 
be kind of perpetuated, that can lead to really significant 
internal dissent.
    What is the likelihood of that or your assessment in 
Cambodia? What can the United States do to promote a more 
vigorous democracy, not confined just to a single family?
    Mr. Heidt. Thank you very much, Senator, for that question.
    Of course, Hun Sen's sons, as you mentioned--several of 
them are active, very active in the CPP. Our sense is looking 
at that, that it is like many political parties. It is a 
complex structure. There are lots of people who want to move to 
the top. The folks that I have talked to--there is not a sense 
that there is some preordained path for the two of them. It is 
not North Korea. It is a big competitive party with lots of 
ambitious people in it. And so even despite the obvious birth 
advantages the two have, my sense is that there is no 
guaranteed route to the top for them.
    Of course, the other issue is, as we saw in 2013, electoral 
politics in Cambodia are getting more competitive. And the 
extent to which the opposition is able to rally and unify 
around strong candidates, promote good candidates from below, 
the extent to which, with international help, Cambodia's 
election institutions get stronger and can deliver better 
elections, those things also make it less likely that some sort 
of family system develops in Cambodia. So I do think it is a 
very competitive situation and one, of course, if confirmed, I 
will keep an eye on.
    Senator Gardner. Thank you. And thank you to the witnesses 
today for your testimony, your comments, and your willingness, 
again, to serve.
    And in breaking with Senate tradition, we are going to stay 
on schedule and stand in a short recess until Senator Risch 
joins us and we reconvene at 11 o'clock.

[Pause.]

            OPENING STATEMENT OF HON. JAMES RISCH, 
                    U.S. SENATOR FROM IDAHO

    Senator Risch [presiding]. Thank you all for coming. This 
Subcommittee on Near East, South and Central Asia of the 
Foreign Relations Committee will come to order.
    And today we have for hearing four nominees for different 
positions around the world.
    First of all, I want to thank all of our nominees for being 
here today and your families and for your willingness to serve. 
The countries you are nominated to are tough posts, to say the 
least, and it really highlights that you and your families are 
willing to make the sacrifices to go and to serve in those 
posts. We really do appreciate your efforts in that regard.
    First, I am going to introduce all of you at once. I want 
to talk about each of the countries very briefly and talk about 
where we are with them, and hopefully, you will correct me if I 
am inaccurate or add to that if you think that is appropriate.
    Obviously, Mr. Hale is going to Pakistan. And while the 
official U.S. policy toward Pakistan is to assist the creation 
of a more stable democratic and prosperous Pakistan, the United 
States-Pakistan relationship is an important but equally 
frustrating relationship, as we all know. Support for U.S. 
presence in Afghanistan has been vital, but over the years, 
Pakistan's support for the Taliban in Afghanistan and the safe 
havens in the FATA has set back efforts to move Afghanistan and 
the region forward. The idea of a new Silk Road across South 
and Central Asia would bring economic prosperity to many, 
especially in Pakistan, but border disputes with India cripple 
the cooperation.
    Recently this spring, a number of us had the opportunity to 
meet a delegation from the Pakistani governing body, the 
Parliament that were here. And I have to say I think all of us 
were impressed with their sincerity and their commitment to do 
the things that would better the United States-Pakistan 
relationship.
    The June 2014 operation against militant groups in FATA was 
a good effort to bring more stability to the border with 
Afghanistan, and hopefully the United States-Pakistan strategic 
dialogue can produce more tangible results politically and 
economically.
    The past several years have shown us that despite enormous 
U.S. aid, Pakistan will only prosper when the country can 
create a stable environment for trade and foreign direct 
investment. To achieve this kind of success, the international 
community needs a serious partner in the Pakistan Government 
that can deepen its political institutions and work through its 
relationship with India and others. After our meeting with the 
delegation from Pakistan, I think all of us believe that they 
have a sincere commitment to attempt to do that.
    Regarding Nepal, the recent earthquake in Nepal has been 
tragic and the international commitment to Nepal has shifted 
accordingly. The outpouring of support from around the world 
requires a sustained focus on rebuilding the country, but donor 
coordination is going to be a daunting task and we must make 
sure both U.S. assistance and other aid is timed appropriately 
and not wasted on projects that are neither needed nor helpful 
for the people of Nepal. These kinds of things happen, of 
course, when you do get a flood of cash that comes in after a 
serious problem as has taken place in Nepal.
    In the aftermath of the earthquake, I also hope there will 
be a renewed sense of unity that can help Nepal move forward 
and find the political consensus necessary to finally draft a 
new constitution which, as we all know, they have been 
struggling with for some time.
    In addition, you will have a particularly important job 
taking care of our people. While Embassy Staff work to help 
Nepal build, they are also rebuilding their own lives and 
making sure they get their own support, and that will be 
crucial.
    Regarding Sri Lanka and the Maldives where Mr. Keshap is 
headed, the January election and change in power has created a 
substantial shift for the region. The government's efforts to 
tackle corruption, deepen reconciliation, and rebalance its 
position among the other regional powers provide an enormous 
opportunity for Sri Lanka. The new President, we hope, will 
maintain his commitment to change, and if indeed he follows 
through on that, it is going to be a sea change for the region.
    Ms. Gwaltney is going to the Kyrgyz Republic. Central Asia, 
as we all know, has been a hard place for the United States. 
English is often the fourth or fifth language spoken, if at 
all, in the region. The dominance of Russia and the proximity 
of China, as well as the Soviet legacy, presents significant 
challenges and tempered expectations. The Kyrgyz Republic 
clearly embodies all of these intersecting challenges. However, 
there is still a lot of work we can do leading up to the 
parliamentary elections in October, and hopefully we can find 
some success helping to develop their economy. But I worry 
about the destabilizing role that Russia can play for its own 
strategic interests.
    With that said, I look forward to all of your testimony.
    First of all, I would like to briefly introduce each of the 
nominees here starting with Mr. David Hale, who has been 
nominated for the Pakistan posting. Mr. Hale is a native of New 
Jersey who also received his undergraduate degree from the 
Georgetown School of Foreign Service and joined the Foreign 
Service in 1984. Mr. Hale has extensive experience in the 
Middle East, serving at posts in Israel, Jordan, Lebanon, 
Bahrain, and others, including his most recent as U.S. 
Ambassador to Lebanon. He is clearly experienced in tough 
postings and jobs that might make Pakistan look like an easy 
assignment.
    Ms. Gwaltney is going to the Kyrgyz Republic. Ms. Gwaltney 
is from Woodland, CA, with a B.A. from UC-Davis, a masters from 
George Washington University. Again, her extensive experience 
working in and around Russia. Ms. Gwaltney has substantial 
experience to support her in this new role.
    Ms. Teplitz, appointed to Nepal, was born in Chicago, IL, 
and received her B.A. at Georgetown University. She has served 
in numerous positions at the State Department and the region. 
With her management background and the current challenges in 
Nepal, she is well suited to assume this position.
    Mr. Keshap, who has been appointed to serve in Sri Lanka 
and the Maldives, was born in Nigeria, educated at the 
University of Virginia with both a bachelors and masters 
degree. Mr. Keshap has extensive experience with Southeast 
Asia, including his current post as the Deputy Assistant 
Secretary of the Bureau of South and Central Asian Affairs at 
State. He has won numerous awards for his work and, at the same 
time, has found time to well raise his four children.
    So in any event, thank you all again for the willingness to 
serve and your families likewise for the willingness to serve.
    Now we would like to hear a few minutes from each of you. 
We will start with Mr. Hale, who has been nominated for 
Pakistan.

         STATEMENT OF HON. DAVID HALE, NOMINATED TO BE 
         AMBASSADOR TO THE ISLAMIC REPUBLIC OF PAKISTAN

    Ambassador Hale. Well, Mr. Chairman, thank you very much 
for the introduction and thank you for the opportunity to 
appear before you today as President Obama's nominee to be the 
next American Ambassador to the Islamic Republic of Pakistan. I 
am humbled by the confidence President Obama and Secretary 
Kerry have placed in me, and if I am confirmed, I look forward 
to working with the Senate on how best to advance U.S. 
interests in Pakistan.
    I have had the privilege of serving in the Foreign Service 
for 31 years, and most of my career has been spent advancing 
U.S. interests in the Middle East and the Muslim world as 
Ambassador to Lebanon, as U.S. Special Envoy to the Middle 
East, and earlier as Ambassador to Jordan.
    During my previous tours as Ambassador, my highest priority 
was the safety and security of all American personnel, 
information, and facilities, as well as the safety and security 
of American citizens. And if confirmed, I will have no higher 
priority in Pakistan.
    Pakistan is a strategically important country for achieving 
U.S. national security interests. We have a strong stake in 
Pakistan's ability to combat militancy and strengthen its 
democratic institutions. And broadly speaking, the United 
States has four core interests in Pakistan: first, defeating 
al-Qaeda and countering militancy; second, nonproliferation and 
nuclear security; third, political and economic stability which 
includes respect for human rights; and fourth, regional 
stability, including improved relations with Afghanistan and 
with India.
    And while there is more to be done on all fronts, the last 
few years have witnessed progress toward these goals as the 
United States and Pakistan have built a more stable, forthright 
relationship. With regard to counterterrorism, Pakistan has 
taken important actions that have brought to justice several 
senior al-Qaeda leaders. It launched a significant military 
operation in North Waziristan last June, capturing large 
weapons caches and closing safe havens for multiple terrorist 
groups. We welcome Pakistan's commitment to target all militant 
groups on Pakistani soil equally, an objective that is 
absolutely in the interest of the United States and one on 
which, if confirmed, I will work closely with the Pakistan 
Government to advance.
    We and the Pakistanis also share deep concern and must 
remain vigilant for any sign that ISIL is gaining a foothold in 
Pakistan. Our shared strategic interests extend well beyond any 
particular group. It is from the ungoverned spaces in remote 
parts of the border region that spring a multitude of threats, 
both militant and criminal, affecting Pakistan, the region, and 
the broader world, including America.
    We are also actively engaged with Pakistan on strategic 
stability and nonproliferation issues. While our governments do 
not see eye to eye on all issues, we share a number of common 
interests, including the high importance of ensuring nuclear 
security and preventing the proliferation of weapons of mass 
destruction.
    Relations with its neighbors play an important part in 
Pakistan's security and prosperity. Pakistan has undertaken 
important outreach to Afghanistan following the Afghan 
election, and the two countries have made some progress toward 
terrorist safe havens on both sides of the border. Given the 
drawdown in United States forces in Afghanistan, it is all the 
more critical that relations between Pakistan and Afghanistan 
be strong and cooperative and that Pakistan continue to put 
pressure on the Taliban to join an Afghan-led peace process. 
Pakistan's relationship with India is critical to Pakistan's 
future, and the normalization of relations between those two 
countries is vital both to them and to the region.
    Experience has demonstrated that sustained, consistent 
engagement with Pakistan provides us with the best chance to 
address challenges and advance our core interests. The United 
States-Pakistan strategic dialogue is the mechanism that 
underpins our cooperation in areas of shared interest, from 
counterterrorism to energy, from economic growth to defense and 
security. All six of the strategic dialogue working groups have 
met within the last year.
    U.S. civilian assistance to Pakistan has delivered 
impressive results and must continue. Our signature projects in 
Pakistan have added 1,500 megawatts to Pakistan's electric grid 
and built over 1,100 kilometers of road.
    U.S. security assistance to Pakistan is equally important. 
It directly supports Pakistan's ability to conduct 
counterinsurgency operations, clear terrorist safe havens, and 
stem the flow of deadly improvised explosive devices, which 
have killed far too many civilians and security personnel.
    Should I be confirmed, I look forward to working with 
Congress and this committee, with our extraordinary team in 
both Washington and Pakistan, with the government and people of 
Pakistan and with the community of Americans of Pakistani 
descent here in the United States.
    And, Mr. Chairman, Ranking Member Murphy, let me reiterate 
how deeply honored I am to be here today and to be nominated as 
the Ambassador to the Islamic Republic of Pakistan. Thank you 
very much for considering my nomination. I would be pleased to 
answer any questions.
    [The prepared statement of Ambassador Hale follows:]

              Prepared Statement of Ambassador David Hale

    Mr. Chairman, Ranking Member Murphy, members of the committee, 
thank you for the opportunity to appear before you today as President 
Obama's nominee to be the next American Ambassador to the Islamic 
Republic of Pakistan. I am humbled by the confidence President Obama 
and Secretary Kerry have placed in me. If I am confirmed by the Senate, 
I look forward to working with the Senate on how best to advance U.S. 
interests in Pakistan.
    I have had the privilege of serving in the Foreign Service since 
1984. Most of my career has been spent advancing U.S. interests in the 
Middle East and the Muslim world, including most recently as Ambassador 
to the Lebanese Republic. Before that, I served as the U.S. Special 
Envoy for Middle East Peace, and earlier, as Ambassador to Jordan.
    During my previous tours as Ambassador, my highest priority was the 
safety and the security of all American personnel, information, and 
facilities, as well as the safety and security of American citizens. If 
confirmed, I will have no higher priority in Pakistan.
    Pakistan is a strategically important country for achieving U.S. 
national security interests. We have a strong stake in Pakistan's 
ability to combat militancy and strengthen its democratic institutions. 
Broadly speaking, the United States has four core interests in 
Pakistan: first, defeating al-Qaeda and countering militancy; second, 
nonproliferation and nuclear security; third, political and economic 
stability which includes respect for human rights; and fourth, regional 
stability, including improved relations with Afghanistan and India.
    While there is more to be done on all fronts, the last few years 
have witnessed progress toward these goals as the United States and 
Pakistan have built a more stable, forthright relationship. With regard 
to counterterrorism, Pakistan has taken important actions that have 
brought to justice several senior al-Qaeda leaders. It launched a 
significant military operation in North Waziristan last June, capturing 
large weapons caches and closing safe havens for multiple terrorist 
groups. We welcome Pakistan's commitment to target all militant groups 
on Pakistani soil equally--an objective that is absolutely in the 
interests of the United States, and one on which, if confirmed, I will 
work closely with the Pakistani Government to advance. We and the 
Pakistanis also share deep concern and must remain vigilant for any 
sign that ISIL is gaining a foothold in Pakistan. Our shared, strategic 
interests extend well beyond any particular group; it is from the 
ungoverned spaces in remote parts of the border region that spring a 
multitude of threats, both militant and criminal, affecting Pakistan, 
the region, and the broader world, including the United States.
    We are also actively engaged with Pakistan on strategic stability 
and nonproliferation issues. While our governments do not see eye to 
eye on all issues, we share a number of common interests including the 
high importance of ensuring nuclear security and preventing the 
proliferation of Weapons of Mass Destruction. We are pleased that 
Pakistan is fully engaged with the international community on nuclear 
safety and security issues, including as an active partner in the 
Nuclear Security Summit process.
    At the same time, Pakistan is an often boisterous democracy of 
nearly 200 million people with a growing economy. In 2013, it completed 
its first democratic transition from one elected civilian government to 
another. The Government of Pakistan has made real strides in unlocking 
Pakistan's growth potential, and is working to advance an economic 
reform program in close collaboration with the International Monetary 
Fund. Just last week, Moody's recognized the government's progress by 
raising its sovereign credit rating. Still, there is work to be done. 
Rule of law, tolerance, and respect for the rights of all citizens are 
guiding principles for all thriving democracies.
    Relations with its neighbors play an important part in Pakistan's 
security and prosperity. Pakistan has undertaken important outreach to 
Afghanistan following the Afghan election, and the two countries have 
made some progress against terrorist safe havens on both sides of the 
border. Given the drawdown in U.S. forces in Afghanistan, it is all the 
more critical that relations between Pakistan and Afghanistan be strong 
and cooperative, and that Pakistan continue to put pressure on the 
Taliban to join an Afghan-led peace process. Pakistan's relationship 
with India is critical to Pakistan's future. The normalization of 
relations between the two countries is vital, both to them and to the 
region.
    Experience has demonstrated that sustained, consistent engagement 
with Pakistan provides us with the best chance to address challenges 
and advance our core interests. The U.S.-Pakistan Strategic Dialogue is 
the mechanism that underpins our cooperation in areas of shared 
interest, from counterterrorism to energy, from economic growth to 
defense and security; all six of the Strategic Dialogue working 
groups--law enforcement and counterterrorism; economics and finance; 
energy; defense; strategic stability and nonproliferation; and 
education, science, and technology--have met within the last year.
    U.S. civilian assistance to Pakistan has delivered impressive 
results and must continue. Our signature projects in Pakistan have 
added over 1,500 megawatts to Pakistan's electric grid, and built over 
1,100 kilometers of road. Each year, the United States sponsors 
thousands of Pakistani exchange students to the United States--
including a larger investment in the Fulbright Program than anywhere 
else in the world. These are long-term investments which advance 
bilateral people to people exchanges, Pakistan's stability and growth, 
and help promote a pluralistic and tolerant society.
    U.S. security assistance to Pakistan is equally important and is 
directly supporting Pakistan's ability to conduct counterinsurgency 
operations, clear terrorist safe havens, and stem the flow of deadly 
improvised explosive devices (IEDs) which have killed far too many 
civilians and security personnel. Our security assistance, like our 
civilian assistance, is geared directly toward meeting critical U.S. 
national security objectives.
    Should I be confirmed, I look forward to working with Congress and 
this committee, our extraordinary team in both Washington and Pakistan, 
who are dedicated and accept risks in order to achieve the goals of the 
American people, with the government and people of Pakistan, and with 
the community of Americans of Pakistani descent here in the United 
States. Mr. Chairman, Ranking Member Murphy and members of the 
committee, let me reiterate how deeply honored I am to be nominated as 
the Ambassador to the Islamic Republic of Pakistan.
    Thank you very much for considering my nomination. I would be 
pleased to answer your questions.

    Senator Risch. Mr. Hale, thank you very much.
    We have been joined by Ranking Member Murphy, and if you do 
not have opening statement, we will move on.
    Senator Murphy. Keep going.
    Senator Risch. Ms. Teplitz, you are next. We would like to 
hear what you have to say.

        STATEMENT OF ALAINA B. TEPLITZ, NOMINATED TO BE 
     AMBASSADOR TO THE FEDERAL DEMOCRATIC REPUBLIC OF NEPAL

    Ms. Teplitz. Mr. Chairman, Ranking Member Murphy, it is an 
honor to appear before you today as the President's nominee for 
the U.S. Ambassador to Nepal. I am grateful for this 
opportunity to serve our country.
    And I would like to recognize some of my family who are 
with me today, my sons, Max and Miles Mellott. And a shout-out 
to those who could not be here because I would not be at this 
table without them and their support.
    Mr. Chairman, as you noted in your remarks, right now when 
people think of Nepal, they invariably think of the horrific 
earthquake of this past April and the tremendous damage it 
wrought. That tragedy has brought together the people of Nepal, 
the country's neighbors, and the international community to 
help the victims recover and the country rebuild.
    And while much has changed in Nepal since the earthquake, 
our overall priorities for the country remain the same: to 
strengthen its democracy, advance its economic growth, and 
improve its resiliency. If confirmed, I will work to advance 
these goals and build on the achievements of my predecessors 
and our 60 years of positive engagement with Nepal.
    I will speak first about the last objective, improved 
resiliency, and then discuss the other two priorities. At the 
top, I would like to extend the Department's profound gratitude 
to Congress for its support for seismically safe housing for 
U.S. Embassy personnel in Kathmandu. It saved the lives of our 
mission personnel and enabled them to immediately assist with 
rescue and relief efforts, thus saving more lives and reducing 
the quake's impact on Americans, Nepalese, and others.
    The first responsibility of every U.S. Ambassador is to 
ensure the safety and security of American citizens, and if 
confirmed, I will continue to prioritize investments that will 
protect our personnel and citizens.
    And as Nepal moves to the reconstruction phase, we will 
work with its government and its neighbors in Asia to help it 
build back better, to provide protection to the most 
vulnerable, to improve resiliency against future disasters, and 
to ensure that investments in Nepal's infrastructure are 
economically sound and environmentally stable. And as you 
pointed out, if confirmed, I will share your focus on donor 
coordination throughout this effort.
    Turning now to the second priority, advancing Nepal's 
economic growth. As we work to help Nepal's economy grow and 
advance, we must look to leverage its location among the 
booming economies of South Asia. With more investments in 
infrastructure, the creation of a business- and investment-
friendly environment, and a more integrated regional market, 
Nepal's entrepreneurs could harness the region's economic 
potential and create tremendous prosperity for their nation. 
Nepal's recent eligibility for a Millennium Challenge 
Corporation--MCC-- compact should help it develop some of that 
economic potential. If confirmed, I will actively look for 
opportunities to improve the business environment and support 
American investment in Nepal.
    I would lastly like to discuss our priority of 
strengthening Nepal's democracy. In 2006, the country emerged 
from a decade of civil conflict with a commitment to creating a 
constitution that would seal a lasting peace. The American 
people can be proud of the role they have played in Nepal's 
transition from violence to peaceful politics. That process is 
still underway. And there has been some significant progress 
lately. Nepal became eligible for an MCC compact because of its 
democratic progress. But much remains to be done, and our 
Government will help Nepal where we can to advance its 
constitutional process and cement a hard-won peace.
    Maintaining that peace will require a firm commitment to 
human rights, and if I am confirmed, the promotion and 
protection of human rights will remain a central priority for 
Mission Kathmandu. This particularly includes protections for 
Tibetan refugees, for women, for disadvantaged populations, and 
for those vulnerable to trafficking.
    Mr. Chairman, I am aware of the many challenges we will 
face in these efforts, from maintaining good coordination with 
Nepal's Government and our international partners, to ensuring 
our resources are being spent effectively.
    My career in the Foreign Service has been dedicated to the 
efficient management of resources, whether for our missions in 
Kabul, Dhaka, Belgium, or here in Washington at the Foreign 
Service Institute or in the Bureau of South and Central Asian 
Affairs. My experience, it would seem, is very timely for this 
posting.
    With the support of Congress, our Government is preparing 
for a large recovery and reconstruction effort in Nepal, and if 
confirmed, I hope to draw on my management experience and 
expertise to help ensure the people of Nepal get the best 
assistance we can give and that the U.S. taxpayers get the 
biggest bang for their buck.
    As that assistance effort progresses, I would, if 
confirmed, look forward to working closely with this committee 
and others in Congress to ensure our work reflects our shared 
priorities.
    Thank you again for the opportunity, and I look forward to 
your questions.
    [The prepared statement of Ms. Teplitz follows:]

                Prepared Statement of Alaina B. Teplitz

    Mr. Chairman, Ranking Member, members of the committee, it is an 
honor to appear before you today as the President's nominee for U.S. 
Ambassador to Nepal.
    I would like to recognize some of my family who are with me today 
and without whom I would not be at this table before you: my sons Max 
and Miles Mellott.
    Mr. Chairman, right now when people think of Nepal, they invariably 
think of the horrific earthquake of this past April, and the tremendous 
damage it wrought. That tragedy has brought together the people of 
Nepal, the country's neighbors, and the international community to help 
the victims recover and the country rebuild.
    And while much has changed in Nepal since the earthquake, our 
overall priorities for the country remain the same: to strengthen its 
democracy, advance its economic growth, and improve its resiliency. If 
confirmed, I will work to advance these goals and build on the 
achievements of my predecessors and our 60 years of positive engagement 
with Nepal.
    I will speak first about the last objective, improved resiliency, 
and then discuss the other two priorities. At the top, I would like to 
extend the Department's profound gratitude to Congress for its support 
for seismically safe housing for U.S. Embassy personnel in Kathmandu. 
It saved the lives of our mission personnel and enabled them to 
immediately assist with rescue and relief efforts, thus saving more 
lives and reducing the quake's impact on Americans, Nepalese, and 
others.
    The first responsibility of every U.S. Ambassador is to ensure the 
safety and security of American citizens, and, if confirmed, I will 
continue to prioritize investments that will protect our personnel and 
citizens in Nepal.
    And as Nepal moves to the reconstruction phase, we will work with 
its government and its neighbors in Asia to help it to ``build back 
better''--to provide protection to the most vulnerable, to improve 
resiliency against future disasters, and to ensure that investments in 
Nepal's infrastructure are economically sound and environmentally 
sustainable.
    I will now turn to the second priority, advancing Nepal's economic 
growth. As we work to help Nepal's economy grow and advance, we must 
look to leverage its location among the booming economies of South 
Asia. With more investments in infrastructure, the creation of a 
business- and investment-friendly environment, and a more integrated 
regional market, Nepal's entrepreneurs could harness the region's 
economic potential and create tremendous prosperity for their nation. 
Nepal's recent eligibility for a Millennium Challenge Corporation 
Compact should help it develop some of that economic potential. If 
confirmed, I will actively look for opportunities to improve the 
business environment and support American investment in Nepal.
    I would lastly like to discuss our priority of strengthening 
Nepal's democracy. In 2006, the country emerged from a decade of civil 
conflict with a commitment to creating a constitution that would seal a 
lasting peace. The American people can be proud of the role they have 
played in Nepal's transition from violence to peaceful politics. That 
process is still underway, and there has been some significant progress 
lately--Nepal became eligible for an MCC Compact because of its 
democratic progress. But much remains to be done, and our government 
will help Nepal where we can to advance its constitutional process and 
cement a hard-won peace.
    Maintaining that peace will require a firm commitment to human 
rights, and, if I am confirmed, the promotion and protection of human 
rights will remain a central priority for Mission Kathmandu. This 
especially includes protections for Tibetan refugees, for women, for 
disadvantaged populations, and for those vulnerable to trafficking.
    Mr. Chairman, I am aware of the many challenges we will face in 
these efforts, from maintaining good coordination with Nepal's 
Government and our international partners, to ensuring our resources 
are being spent effectively.
    My career in the Foreign Service has been dedicated to the 
efficient management of resources, whether for our missions in Kabul, 
Dhaka, or Belgium, here in Washington at the Foreign Service Institute 
or in the Bureau of South and Central Asian Affairs.
    With the support of Congress, our government is preparing for a 
large recovery and reconstruction effort in Nepal, and, if confirmed, I 
hope to draw on my management experience and expertise to help ensure 
the people of Nepal get the best assistance we can give, and that the 
U.S. taxpayers get the biggest bang for their buck.
    As that assistance effort progresses, I would, if confirmed, look 
forward to working closely with this committee and others in Congress 
to ensure our work reflects our shared priorities.
    Thank you and I look forward to your questions.

    Senator Risch. Thank you very much.
    Ms. Gwaltney?

         STATEMENT OF SHEILA GWALTNEY, NOMINATED TO BE 
               AMBASSADOR TO THE KYRGYZ REPUBLIC

    Ms. Gwaltney. Thank you, Mr. Chairman, Ranking Member 
Murphy.
    It is a great honor to appear before you today as President 
Obama's nominee to serve as the United States Ambassador to the 
Kyrgyz Republic. I am deeply grateful for the trust and 
confidence the President and Secretary Kerry have shown in me 
with this nomination. If confirmed, I look forward to working 
closely with the members of this committee and their staff to 
promote and protect U.S. interests in the Kyrgyz Republic.
    I have had the privilege of serving our country for 31 
years as a Foreign Service officer. I have served as Deputy 
Chief of Mission in the Kyrgyz Republic, Ukraine, and Russia 
and have worked on issues related to this region for most of my 
career. I can think of no higher honor than to return to 
represent the American people as Ambassador of the United 
States to the Kyrgyz Republic, a country I know and respect for 
its rich culture, natural beauty, and warm and hospitable 
people. I deeply appreciate the love and support of my family 
and friends throughout these years.
    The principles that have guided U.S. policy toward the 
Kyrgyz Republic remain as relevant today as they were when the 
country attained independence 23 years ago. Our long-term focus 
has always been to support and respect its sovereignty, 
territorial integrity, and independence. Our strategic goals 
are to facilitate and strengthen the Kyrgyz Republic's 
stability, prosperity, and democracy.
    The Kyrgyz Republic is Central Asia's leader in democratic 
development. In 2011, following the election of President 
Atambayev, the Kyrgyz Republic accomplished the first 
democratic transfer of Presidential in Central Asia. The Kyrgyz 
Republic has an independent Parliament and a vibrant and active 
civil society, with thousands of nongovernmental organizations 
working in a wide variety of fields. If confirmed, I would work 
with the government and people of the Kyrgyz Republic to 
strengthen the country's democratic institutions, support the 
continued growth of civil society, and promote respect for 
human rights.
    Our security cooperation with the Kyrgyz Republic is 
focused on the common goals of countering terrorism, improving 
border security, and stemming the flow of illegal narcotics. 
The United States and the Kyrgyz Republic need to work together 
to fight human trafficking and other transnational threats. If 
confirmed, I would work to strengthen our existing partnership 
and continue our joint efforts to address regional and global 
security challenges.
    Expanding markets and opportunities for American business 
is a top priority worldwide. As Secretary Kerry says, ``Foreign 
policy is economic policy.'' If confirmed, I would work with 
the Kyrgyz Republic to bolster private sector-driven economic 
growth, including the promotion of American economic and 
business interests. The Kyrgyz Republic has been a regional 
leader in pursuing market reform and our two nations can work 
together to expand prosperity for both our countries.
    People-to-people contacts remain the bedrock of our 
diplomatic efforts. If confirmed, I look forward to engaging 
people throughout the Kyrgyz Republic and strengthening ties 
between the American and the Kyrgyz people. Public diplomacy 
efforts promote a positive understanding of the United States 
and help build deep and lasting ties between our countries.
    If confirmed, it would be my honor to ensure that our 
mission continues to provide U.S. citizens resident in or 
visiting the Kyrgyz Republic the highest quality service and 
utmost protection.
    Mr. Chairman, one of the great privileges of my career has 
been the opportunity to help lead teams of Americans serving at 
our embassies overseas that are dedicated to the advancement of 
U.S. interests. If confirmed, I would do my best to ensure the 
safety, security, and well-being of my colleagues and their 
family members who serve at our Embassy. I would maintain the 
highest standards of ethical conduct and moral values for our 
mission, including ensuring that the principles of 
nondiscrimination and respect for diversity are respected by 
all in our mission.
    If confirmed, I would always be available to this 
committee, its members, and staff, to discuss and work together 
in pursuit of U.S. national interests in the Kyrgyz Republic.
    Mr. Chairman, I thank you for this opportunity to appear 
before you and the other members of the subcommittee and look 
forward to your questions. Thank you.
    [The prepared statement of Ms. Gwaltney follows:]

                 Prepared Statement of Sheila Gwaltney

    Mr. Chairman, Ranking Member, and members of the committee, it is a 
great honor to appear before you today as President Obama's nominee to 
serve as the United States Ambassador to the Kyrgyz Republic. I am 
deeply grateful for the trust and confidence the President and 
Secretary Kerry have shown in me with this nomination. If confirmed, I 
look forward to working closely with the members of this committee and 
their staff to promote and protect U.S. interests in the Kyrgyz 
Republic.
    I have had the privilege of serving our country for 31 years as a 
Foreign Service officer. I have served as Deputy Chief of Mission in 
the Kyrgyz Republic, Ukraine and Russia and have worked on issues 
related to this region for most of my career. I can think of no higher 
honor than to return to represent the American people as Ambassador of 
the United States to the Kyrgyz Republic, a country I know and respect 
for its rich culture, natural beauty, and warm and hospitable people. I 
deeply appreciate the love and support of my family and friends 
throughout these years.
    The principles that have guided U.S. policy toward the Kyrgyz 
Republic remain as relevant today as they were when that country 
attained independence 23 years ago. Our long-term focus has always been 
to support and respect its sovereignty, territorial integrity, and 
independence. Our strategic goals are to facilitate and strengthen the 
Kyrgyz Republic's stability, prosperity, and democracy.
    The Kyrgyz Republic is Central Asia's lead