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107th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 107-142
======================================================================
FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS
APPROPRIATIONS BILL, 2002
_______
July 17, 2001.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Kolbe, from the Committee on Appropriations, submitted the
following
R E P O R T
together with
ADDITIONAL VIEWS
[To accompany H.R. 2506]
The Committee on Appropriations submits the following
report in explanation of the accompanying bill making
appropriations for Foreign Operations, Export Financing, and
Related Programs, and for sundry independent agencies and
corporations for the fiscal year ending September 30, 2002, and
for other purposes.
INDEX TO BILL AND REPORT
_______________________________________________________________________
Page
Bill Report
Summary of the Bill........................................
2
Committee Recommendations..................................
2
Title I--Export and Investment Assistance:
Export-Import Bank of the United States............ 2
3
Overseas Private Investment Corporation............ 4
4
Trade and Development Agency............................... 5
5
Title II--Bilateral Economic Assistance:
Child Survival and Health Programs Fund............ 6
6
Development Assistance............................. 10
19
International Disaster Assistance.................. 11
35
Transition Initiatives............................. 11
37
Development Credit Authority....................... 12
37
Payment to the Foreign Service Retirement and
Disability Fund................................ 13
37
AID Operating Expenses............................. 13
38
Operating Expenses of the Agency for International
Development, Office of the Inspector General... 14
40
Economic Support Fund.............................. 14
40
International Fund for Ireland..................... 16
48
Assistance for Eastern Europe and the Baltic States 16
48
Assistance for the Independent States of the Former
Soviet Union................................... 19
51
Independent Agencies:
Inter-American Foundation.......................... 22
56
African Development Foundation..................... 23
56
Peace Corps........................................ 23
56
Department of State:
International Narcotics Control and Law Enforcement 24
56
Migration and Refugee Assistance................... 25
60
Emergency Refugee and Migration Assistance Fund.... 26
61
Nonproliferation, Anti-terrorism, Demining and
Related Programs............................... 27
62
Department of the Treasury:
International affairs technical assistance......... 28
63
Debt restructuring................................. 29
64
United States community adjustment and investment
program........................................
66
Title III--Military Assistance:
International Military Education and Training...... 32
66
Foreign Military Financing Program................. 33
68
Peacekeeping Operations............................ 36
70
Title IV--Multilateral Economic Assistance:
Global Environment Facility........................ 36
70
International Development Association (IDA)........ 37
71
Multilateral Investment Guarantee Agency........... 37
71
Inter-American Investment Corporation.............. 38
73
Asian Development Fund (ADF)....................... 38
73
African Development Bank........................... 38
74
African Development Fund (AFDF).................... 39
74
European Bank for Reconstruction and Development
(EBRD)......................................... 39
74
International Fund for Agricultural Development
(IFAD)......................................... 39
74
Department of State:
International Organizations and Programs........... 40
75
Title V--General Provisions:
House of Representatives Report Requirements.......
80
summary of the bill
The Committee has recommended foreign assistance and export
financing funding at a level that is $458,000 below the
Administration's fiscal year 2002 request of $15,167,751,000 in
discretionary budget authority. The resulting total of
$15,167,293,000 in discretionary appropriations is needed to
meet the essential requirements of the United States and its
President in conducting foreign policy and meeting urgent
humanitarian needs abroad.
The section 302(b) allocation for foreign operations,
export financing, and related programs is $15,168,000,000 in
discretionary budget authority. The Committee recommendation is
slightly below the section 302(b) allocation and is
$304,005,000 above the 2001 level.
committee recommendations
For export and investment assistance programs the Committee
has recommended a gross total of $906,000,000, which is
partially offset by collections and a negative subsidy totaling
$301,000,000. The subsidy appropriation for the Export-Import
Bank is $753,323,000, and the Trade and Development Agency is
funded at $50,000,000. Consistent with the President's budget
request, the Committee has provided no new subsidy
appropriations for the Overseas Private Investment Corporation.
The Committee has recommended $1,169,796,000 of the
$1,209,796,000 requested for the international financial
institutions. The overall level is $22,917,000 above the fiscal
year 2001 enacted level and $40,000,000 below the request.
For development and humanitarian assistance, the Committee
has recommended a total of $3,356,380,000 of which
$1,387,000,000 is for child survival and health programs.
Another $1,098,000,000 is for longer-term development
assistance. The Committee has also included $200,000,000 for
disasters worldwide and $40,000,000 for transition initiatives.
The Committee has included $224,000,000 for debt restructuring
for poor countries and a tropical forestry debt relief program.
The Committee has continued its highly effective Child
Survival and Health Programs Fund. The account is designed to
ensure that there will not be reductions in these vital
programs as the overall bilateral assistance program is
constrained. The emphasis is on programs that directly affect
younger children and on accelerating efforts to eradicate
diseases that threaten younger children and caregivers alike.
The account now includes population assistance, while basic
education for children will be funded through the Development
Assistance account. It does provide for a grant to UNICEF at a
level of $120,000,000.
The Committee has included a total of $768,000,000 in
assistance to the Independent States of the Former Soviet
Union, and $600,000,000 for Eastern Europe and the Baltic
States.
The Committee has recommended a total of $730,000,000 for
refugee programs.
For economic assistance under the Economic Support Fund,
the Committee has recommended a total of $2,199,000,000.
The Committee has recommended $311,000,000 for a
Nonproliferation, Anti-terrorism and Demining account which
includes funding for the Nonproliferation and Disarmament Fund,
anti-terrorism assistance, demining activities, United States
participation in the Korean Energy Development Organization
(KEDO), and the U.S. voluntary contribution to the
International Atomic Energy Agency (IAEA).
For Foreign Military Financing, the Committee has
recommended a grant program of $3,627,000,000.
TITLE I--EXPORT AND INVESTMENT ASSISTANCE
Export-Import Bank of the United States
subsidy appropriation
Fiscal year 2001 level................................ $865,000,000
Fiscal year 2002 request.............................. 633,323,000
Committee recommendation.............................. 753,323,000
administrative expenses
Fiscal year 2001 level................................ $62,000,000
Fiscal year 2002 request.............................. 65,000,000
Committee recommendation.............................. 63,000,000
The Committee is recommending a subsidy appropriation for
the Export-Import Bank of $753,323,000 and an appropriation of
$63,000,000 for administrative expenses. Taken together, the
recommended appropriation for the Eximbank is $116,677,000 less
than the fiscal year 2001 level and $118,000,000 above the
request.
Of the $231,677,000 cut to the subsidy appropriation
requested by the President, approximately $112,000,000 is a
reduction in amounts needed by the Eximbank due to changes in
the risk factors as estimated by the Office of Management and
Budget and required under the Federal Credit Reform Act. The
Committee recommends restoring $120,000,000 to the requested
subsidy appropriation. The Committee expects that this level of
subsidy will support a projected level of Eximbank
authorizations of $12,400,000,000 in 2002, approximately
$1,000,000,000 higher than the projected authorizations
supported by the request, and approximately $2,000,000,000
higher than the estimated fiscal year 2001 levels.
The Committee has continued prior year language limiting
the export of nuclear technology or fuel to certain countries.
The Committee provided no additional funds for a tied-aid
``war chest''. The estimated $321,800,000 remaining ``war
chest'' balance for tied-aid purposes may be used to support
loans. If more funds are needed for the war chest, the
Committee will promptly consider any additional requests from
the President.
The Committee is concerned about proposals in the
President's request including a combination of higher fees,
less guarantee coverage, and value-added tests. The Committee
urges the Chairman of the Eximbank to conduct test trials of
these proposals on a limited basis and directs Eximbank to
report back the findings to the Committee on a semi-annual
basis.
The Committee is concerned about the U.S. position in OECD
negotiations for an agreement on ``unproductive expenditures''
with the aim of preventing a recurrence of unsustainable debt
burdens in Heavily Indebted Poor Countries (HIPCs). The
Committee urges the Administration to take a position in the
OECD negotiations that is not counter to US foreign policy
goals and debt relief initiatives.
Overseas Private Investment Corporation
noncredit account
Fiscal year 2001 level................................ $38,000,000
Fiscal year 2002 request.............................. 38,608,000
Committee recommendation.............................. 38,608,000
program account
Fiscal year 2001 level................................ $24,000,000
Fiscal year 2002 request.............................. ................
Committee recommendation.............................. ................
The Committee is recommending no subsidy appropriation for
the Overseas Private Investment Corporation's (OPIC) direct and
guaranteed loan credit programs, and it is recommending
$38,608,000 for administrative expenses, the same level as the
request.
OPIC has $24,000,000 in carryover funds available to use in
2002, therefore the request and the Committee recommendation
for no appropriation should result in no reduction in the
program level from 2001. OPIC subsidy appropriations are
available for 2 years, so there will be no carryover into 2003,
and regular appropriations will be required again next year.
The Committee continues prior year language required by the
Federal Credit Reform Act and addressing representation
expenses and availability of funds.
As in last year's report, the Committee directs OPIC to
continue to provide on a semi-annual basis written reports
including the following information for each investment fund:
the identity, selection process, and professional background of
current and past managers; the fees and compensation currently
provided to senior management; the amount of OPIC guarantees
and actual investments made at the end of the previous month;
and any additional observations that OPIC may want to include.
opic and the environment
The Committee encourages OPIC to provide increased support
within the power and energy sector for investments using
American technology that promotes a cleaner environment.
Special attention should be given to the use of proven
geothermal, small hydro, wind, biomass and solar technologies.
The Committee urges OPIC to continue over the next year to
review and strengthen its policies regarding the energy and
power sectors as they relate to the environment and private
sector infrastructure. The ongoing review should reflect the
comments of Congress and the public, as well as the Executive
branch.
Funds Appropriated to the President
Trade and Development Agency
Fiscal year 2001 level................................ $50,000,000
Fiscal year 2002 request.............................. 50,024,000
Committee recommendation.............................. 50,024,000
The Committee is recommending $50,024,000 for the Trade and
Development Agency (TDA), an increase of $24,000 above the 2001
level and the same as the request. In collaboration with the
U.S. National Institute of Standards and Technology, TDA is
encouraged to support United States participation in the
development of national technical standards compatible with
American goods and services in key transition country markets.
TITLE II--BILATERAL ECONOMIC ASSISTANCE
Funds Appropriated to the President
Agency for International Development
Revised structure of development assistance accounts
The Committee provides two accounts for longer-term
development assistance programs managed by the Agency for
International Development. As in fiscal year 2001 and as
requested in the President's budget, the bill includes an
account for child survival and disease prevention and treatment
activities. The Committee recommends adding reproductive health
to this account in 2002. The bill also includes a separate
general development assistance account for basic education,
agriculture, energy, environment, trade and other development
programs in Africa, Latin America and Asia. For the first time
in 5 years, the Development Assistance account includes basic
education for children.
Two existing regional accounts jointly managed by the
Department of State and the Agency for International
Development are included elsewhere in title II under ``Other
Bilateral Assistance''. The Committee utilizes the regional
accounts to fund most economic and political cooperation with
Russia and the independent states of the former Soviet Union as
well as the former captive nations of the Soviet Empire in
Central Europe.
There are two other structural changes from the budget
request. Resuming a long-standing practice, the Committee again
includes separate accounts under ``Independent Agencies'' for
the Inter-American Foundation and the African Development
Foundation. The President's request proposed to fund the
foundations through transfers from ``Development Assistance''.
As it has for the past six years, the Committee again
includes funding for long-term development assistance in sub-
Saharan Africa, other than child survival and health programs,
in the global ``Development Assistance'' account. It encourages
the use of the special authorities contained in the
``Development Fund for Africa'' authorization for AID
activities in Africa.
Finally, authority is provided for the United States to
make contributions from the Child Survival and Health Programs
Fund to three international health funds: The Vaccine Fund
[associated with the Global Alliance for Vaccines and
Immunizations (GAVI)]; the International AIDS Vaccine
Initiative; and a proposed global trust fund to fight HIV/AIDS,
malaria, and tuberculosis. The President's budget request would
fund the latter fund as a separate account under the Department
of the Treasury.
Global Development Alliance
The Committee is supportive of AID's efforts to enhance its
coordination with private companies, foundations, faith-based
groups, and volunteer organizations. The Committee has
encouraged, and AID has undertaken, such partnerships for many
years. The Committee is intrigued by the outlines of the Global
Development Alliance (GDA) proposal, which is characterized as
an attempt to change the way AID implements its assistance
mandates. Until sufficient details about the proposed scope and
operations of the GDA are made available to the Committee for
its review and, if necessary, further consultation with the
Agency, no program funds are available for reservation of set-
asides from this or prior year Acts to implement GDA. The
Committee has no objection to the use of reasonable amounts
from ``AID Operating Expenses'' to properly define and identify
the proposed uses of GDA.
Child Survival and Health Programs Fund
Fiscal year 2001 level................................ $963,000,000
Fiscal year 2002 request.............................. 991,000,000
Committee recommendation.............................. 1,387,000,000
The Committee recommends $1,387,000,000 for the renamed
``Child Survival and Health Programs Fund'', an amount that is
$396,000,000 above the request under the fiscal year 2001
account structure and $169,000,000 above the amount enacted for
2001 under the revised account structure. The recommendation
includes authority for United States contributions to three
international health funds. The Child Survival and Disease
Programs Fund is a Congressional initiative that the President
now includes in the budget request. As a Committee priority
this year, a detailed justification of the recommended increase
is presented below.
Overview of HIV/AIDS Assistance
As it has for many years, the Committee continues to
support the fight against HIV/AIDS through United States
Government (bilateral) assistance programs managed by the
Agency for International Development. In other appropriation
bills, additional support for the fight against HIV/AIDS is
provided through the Centers for Disease Control and the
National Institutes of Health. AID works with both the CDC and
the NIH in its overseas operations. All of these bilateral
programs are fully operational today; together they are the
worldwide leaders in the field.
The Committee has provided a total of $474,000,000 in this
bill for HIV/AIDS, of which $434,000,000 is funded through the
Child Survival and Health Programs Account. Another $40,000,000
is provided, as requested in the President's budget, through
other AID-managed accounts, such as the Economic Support Fund,
International Disaster Assistance, and regional accounts for
Eastern Europe and the former Soviet Union. By comparison, last
year the Committee recommended a total of $210,000,000 and the
final conference agreement provided $315,000,000 in the bill
for the same purpose. Overall, the fiscal 2002 recommendation
of $474,000,000 for HIV/AIDS is $45,000,000 above the
President's request of $429,000,000.
Again this year the Committee recommendation allows for a
transfer of funds to a proposed multilateral trust fund for
health. The fund most likely to be established is a
multilateral Health Trust Fund (allocated between 20 percent
for TB and malaria and 80 percent for HIV/AIDS) advocated by
the President of the United States and the Secretary General of
the United Nations. The President has requested $100,000,000
for this purpose, and full authority is provided herein to
fulfill that request. The Committee assumes that $80,000,000
will be made available for the trust fund proposal from the
Child Survival and Health Programs Fund in this bill, of which
$20,000,000 for malaria and TB is allocated under the ``Other
Infectious Diseases'' category, and $60,000,000 is allocated
under the ``HIV/AIDS'' category. The source for the remaining
$20,000,000 for the proposed trust fund, as requested by the
President, would be the unused $20,000,000 provided in last
year's Child Survival and Disease Programs Fund for a World
Bank HIV/AIDS trust fund.
If the latest proposal for a multilateral trust fund for
HIV/AIDS and related infectious diseases does not come to
fruition within 12 months of enactment, the entire $80,000,000
authorized for that purpose in this recommendation could be
used promptly by the Agency for International Development for
its ongoing bilateral programs to combat HIV/AIDS, malaria, and
TB.
Explanation for increase above fiscal year 2001 level
The Committee's recommendation is higher than the 2001
level because of three continuing developments over the past
two years. First, there is a growing willingness in many poor
and developing nations to address the threat each faces from
tuberculosis/HIV/AIDS and other infectious diseases. A few more
cases are being reported of nations reversing the spread of
HIV/AIDS, but the Agency for International Development has
placed too little attention on, and provides minimal support
for halting, emerging epidemics. The Committee urges AID to
focus on emerging concentrations of HIV, utilizing best
practices used by nations and communities that have actually
halted and reversed the number of victims.
Secondly, private American foundations and international
commercial vaccine producers are now working with AID, the
World Health Organization, and UNICEF to save children by
reducing the cost and increasing the supply of vaccines that
are currently used mostly in industrial countries because of
expense. Because of the investments funded by this account in
prior years, absorptive capacity in a number of poor nations is
beginning to increase to the extent that they can begin to
limit the spread of TB/HIV and properly administer vaccines.
Such improvements in absorptive capacity cannot be sustained or
extended without additional investment in surveillance and
institutional capacity.
Finally, the Committee is aware that the number of
vulnerable children in need of international and local support
is increasingly evident in many regions. In Africa, war and the
impact of TB/HIV is generating a generation of child soldiers
and orphans in several nations. International assistance may
help adult survivors socialize and educate such vulnerable
children, although at present there are few precedents for
effective care and training in such dire situations. However,
communities affected by HIV are only now beginning to become a
major focus of United States development strategies. In Eastern
Europe, Central Eurasia, and Southeast Asia, the sharply
declining economic situation among many families in recent
years has left more children in poorly funded orphanages,
living on the streets, or becoming victims of sexual predators
and drug dealers. Solutions to the tragedy of vulnerable
children must be local, but voluntary organizations whose
private donations are supplemented by AID can often expedite
those solutions and provide desperately needed material
support.
essential role of free market economic growth in development
As popular as the Child Survival and Health Programs Fund
is with the American people, the Committee has resisted appeals
to increase its funding more rapidly. The Child Survival
account is only one part of the U.S. effort to help others work
toward the standards of living most Americans have achieved
already. The Committee recognizes that the long-term benefits
of the Fund are limited unless there are future jobs and income
for the children we help when they grow up to be adults.
Continuing AID support for free market approaches to economic
growth remains essential to complete the work of child
survival. In each poor country helped by American child
survival activities, a balanced assistance program also
requires cooperation to provide reasonably priced and reliable
food, water, cleaner power, and communications as well as
credit.
Allocation of Child Survival and Health Programs Fund
Unless modifications are subsequently notified and agreed
to by the Committees on Appropriations, fiscal year 2002
appropriations for the Child Survival and Health Programs Fund
are deemed to be allocated as follows:
Category Allocation
Child Survival and Maternal Health.................... $295,000,000
Vulnerable children................................... 25,000,000
HIV/AIDS.............................................. 434,000,000
Other Infectious Diseases............................. \1\ 155,000,000
Reproductive Health/Voluntary Family Planning......... \1\ 358,000,000
Grant to UNICEF....................................... 120,000,000
-----------------
Total in this account............................. 1,387,000,000
Other CSD activities in ESF........................... 50,000,000
CSD activities in regional accounts................... 45,000,000
-----------------
Total in all bilateral accounts................... 1,482,000,000
\1\ The two categories indicated include undetermined amounts for TB
prevention among persons with HIV/AIDS and for treatment and
management of sexually transmitted diseases that also may be included
in the HIV/AIDS category.
Definition of the Budget Categories Within the Child Survival and
Health Programs Fund
In order to clarify the range of activities categorized in
the above allocations, the Committee, in consultation with AID,
provides the following explanation:
1. CHILD SURVIVAL AND MATERNAL HEALTH
Primary causes of morbidity and mortality for children and mothers
Supporting key child health and survival interventions that
focus on prevention, treatment, and control of the five primary
childhood killers: diarrheal disease, acute respiratory
infection, malnutrition, malaria (directed primarily at
children) and vaccine preventable diseases;
Introducing environmental health interventions to prevent
the spread of childhood diseases from environmental factors
such as contaminated water; and
Improving maternal health to protect the outcome of
pregnancy, neonatal and young infants, and to save the lives of
mothers, by improving maternal nutrition, promoting birth
preparedness, improving safe delivery and postpartum care, and
managing and treating life-threatening complications of
pregnancy and childbirth.
Micronutrients
Supplementing, fortifying and modifying dietary behaviors
to increase intake of key micronutrients, particularly vitamin
A, iron, iodine, folic acid, and zinc.
Polio eradication
Partnering to strengthen polio eradication and vaccination
programs;
Supplemental polio immunization campaigns and improving
routine immunization; and
Improving acute flaccid paralysis surveillance, response
and linkages with other disease control programs.
2. Vulnerable Children \1\
Care and protection of children who are displaced or
vulnerable with an emphasis on strengthening family and
community capacity in identifying and responding to special
physical, social, educational, and emotional needs including:
---------------------------------------------------------------------------
\1\ Other accounts (e.g., Development Assistance and Economic
Support Fund) support programs addressing the issues of children
affected by violence and/or trafficked for illicit purposes.
---------------------------------------------------------------------------
Under the Displaced Children and Orphans Fund, children
affected by war, including child soldiers, as well as orphaned,
abandoned and street children;
Blind children;
Orphanages in Europe and Eurasia;
Trafficking of young women and children; and
Abusive child labor.
3. HIV/AIDS
Prevention
Expanding behavior change interventions to prevent and
mitigate the impact of HIV/AIDS;
Preventing and managing sexually transmitted diseases
(STDs);
Preventing and managing TB and other opportunistic diseases
related to HIV/AIDS; and
Reducing mother-to-child transmission of HIV/AIDS.
Care and Treatment
Increasing the capacity of public and private sector
organizations, particularly at the home and community level, to
prevent HIV transmission and support persons living with HIV/
AIDS, their caregivers, families and survivors;
Treating opportunistic infections, primarily tuberculosis,
in persons living with HIV/AIDS;
Conducting pilot programs for the care and treatment of
persons living with HIV/AIDS;
Entering into cooperative agreements and parallel financing
alliances with the private sector to obtain needed commodities
for sustained treatment of persons living with HIV/AIDS; and
Establishing microcredit programs designed for communities
with a high incidence of persons living with HIV/AIDS.
Caring for infected children, and for communities severely
affected by HIV/AIDS.
Surveillance
Increasing the quality, availability, and use of evaluation
and surveillance information.
4. OTHER INFECTIOUS DISEASES
Tuberculosis (TB)
Improving control of tuberculosis at the country level by
expanding the application of the Directly Observed Therapy
Short Course (DOTS) strategy and strengthening local capacity;
Developing and testing alternative approaches for TB
control;
Improving surveillance of TB and of multi-drug resistant TB
strains;
Conducting research to identify improved technologies/
methods for TB diagnosis and treatment; and
Preventing and treating TB in persons with HIV/AIDS and
their caregivers.
Malaria
Improving prevention, control and treatment of malaria and
other infectious diseases that are not currently vaccine
preventable.
Antimicrobial resistance and infectious diseases surveillance
Improving interventions to reduce the spread of
antimicrobial resistance; and
Improving capacity for surveillance and response for
infectious diseases, including at the local level.
5. Reproductive Health/voluntary family planning
Expanding access to, and improving the quality of voluntary
family planning programs;
Supporting related reproductive health services such as
integrating family planning with antenatal, neonatal, and post-
partum care, integrating family planning with HIV/AIDS and STD
programs, eliminating female genital cutting, and supporting
post-abortion care;
Providing information and services for families
experiencing difficulty in conceiving children, including
programs to treat non-infectious diseases that impede
fertility;
Forecasting, purchasing, and supplying contraceptive
commodities and other materials necessary for reproductive
health programs; and
Fostering conditions to create favorable policy
environments, improve quality, strengthen systems, and
contribute to the sustainability of family planning and other
reproductive health programs.
Note: The population funds of the Child Survival and Health
Programs Fund are not to be used to finance, support, or be
attributed to the performance or promotion of abortion as a
method of family planning, or to pay for biomedical research
which relates to the performance of abortion as a method of
family planning (although epidemiological or descriptive
research to assess the incidence, extent or consequences of
abortions is permitted).
Promoting the Integrity of the Child Survival Fund
The previous AID Administrator appointed a coordinator of
activities related to the Child Survival and Disease Programs
Fund, as the Committee directed two years ago. The Committee
expects the current Administrator to appoint a coordinator for
all child survival and health programs managed by AID, or,
alternatively, to establish a separate bureau to manage central
programs, provide technical support to child survival and
health programs in the field, and to act as liaison with the
Committee on all child survival and health programs and
activities managed by AID, regardless of the funding source.
More remains to be done by AID management. The budget
justification lacks detailed information, necessary for
purposes of being used as a baseline for reprogramming and
notification proposes, concerning numerous activities that
would be funded from the Child Survival and Health Programs
Fund.
Proposed activities included in the fiscal year 2002 budget
justification combine programs, projects, and activities funded
from this account with programs, projects, and activities
funded from other funding sources. There is inadequate
information, with regard to many ongoing and proposed
activities, to allow the Committee to identify the differences
in utilization of the individual accounts. The May 2002 AID
documents characterized as a budget justification will not be
accepted as valid for fiscal year 2002 programs for purposes of
section 515 until supplemental budget narratives and tables are
transmitted to the Committee in the proper form.
The Committee is again including bill language that
prohibits the use of certain funds in this account for
nonproject assistance, or cash grants, to governments. The
provision of cash grants as general budget support for
governments is no longer an appropriate development tool, given
current funding constraints. To the extent that cash grants are
necessary for countries in transition or for specific foreign
policy goals, funds are available through the ``Economic
Support Fund''.
child survival and maternal health: former Soviet Union
The Committee continues to be concerned about the low
priority assigned to declining maternal and environmental
health conditions and the increasing incidence of TB/HIV/AIDS
in Russia, Ukraine, and the Central Asian republics. The
positive results achieved with the small amounts already spent
for such programs in recent years have been dramatic. More can
be done with Global Bureau core funds to complement funding
provided by the regional accounts. The Committee has included
bill language regarding a minimum level of $45,000,000 to be
allocated for child survival and health programs within the
separate account, ``Assistance to the Independent States of the
Former Soviet Union.''
child survival and maternal health: micronutrients
The Committee supports increased funding for the vitamin A,
iodine and other micronutrient deficiency programs. More than
250 million children are vitamin A deficient, increasing their
risk of severe illness, blindness and death. Vitamin A is a
low-cost solution to many easily preventable diseases. The
Committee recommends that AID make every effort to provide
$30,000,000 from all accounts for the overall United States
micronutrient program.
The Committee notes that iodine deficiency disorder (IDD)
is the leading preventable cause of mental retardation in
children. The major remaining regions with iodine deficiency
are in the former Soviet Union and southeast Europe and regions
of Africa and South Asia. Private funds raised by Kiwanis
International and implemented by UNICEF are already saving 10
million children a year from mental retardation. The Committee
recommends that in order to help meet the IDD partnership
goals, AID provide a total of at least $2,500,000 from the
Child Survival and Health Programs Fund and $2,225,000 from
regional accounts for the Kiwanis/UNICEF IDD partnership
program.
child survival and maternal health: polio eradication
The Committee recommendation includes within the child
survival and maternal health allocation not less than
$25,000,000 for the final phases of the program initiated by
the Committee in fiscal year 1996 to eradicate polio by 2006.
child survival and maternal health: vaccines and immunization
The Committee is aware that at least three million children
die each year because they do not receive life-saving
immunizations. Over many years, the Committee has funded
procurement of polio and other childhood vaccines directly
through AID and indirectly through the grant to UNICEF. Last
year the Congress recommended that up to $50,000,000 be
provided to the Global Fund for Children's Vaccines (now The
Vaccine Fund) in support of the Global Alliance for Children's
Vaccines to help close the gap between children who receive
immunizations and those who do not. The Global Fund provides
resources to support the international, public and private
partnership recommendations provided to GAVI. Since its
initiation a year ago, more than $300,000,000 for 21 countries
has been committed for immunization programs--potentially
saving as many as one million lives a year. The Committee
strongly supports continued funding for this program, and
recommends that up to $60,000,000 be provided to The Vaccine
Fund in fiscal year 2002.
Vulnerable Children
The Committee directs AID to allocate $25,000,000 for
displaced children and orphans and blind children in fiscal
year 2002. A substantial part of these and other available
resources are to be used in Romania, the former Yugoslavia,
Moldova, Ukraine, Russia, and Mongolia. AID has recently
initiated innovative programs in most of these countries at the
urging of Congress, and the Committee directs AID to adequately
fund these programs in fiscal year 2002.
Care for displaced children and orphans is limited in these
countries and in parts of Africa. Basic medical supplies are
scarce at most institutions around the world. In some cultures,
orphans are considered outcasts, especially those with
disabilities of any type. Some children can become healthy with
proper medical attention and returned to their families or
placed with domestic or foreign families through adoption.
Families with mentally or physically disabled children
would benefit from community support programs such as Special
Olympics.
The Committee encourages AID to expand its support of
private voluntary organizations, which seek to improve the
health and quality of life of such children. To reinforce the
suggestion in last year's report concerning these particularly
vulnerable children, the Committee urges AID to provide up to
$2,000,000 for support of organizations working in this sector.
Older children permanently placed in orphanages are often
dismissed from state care and thrown out on the streets to
survive without skills. Most teenage orphans find that their
only chance for survival is to participate in criminal acts,
including prostitution and selling drugs. United States
assistance in establishing a limited number of vocational-
technical centers will teach these orphans the necessary skills
to become productive members of society.
According to the World Health Organization there are 1.5
million blind children around the world. Another 7 million
children suffer from low levels of vision. The Committee
recognizes the work being done by Helen Keller Worldwide and
other organizations to assist blind children and children with
low levels of vision. These children can be helped through
simple and inexpensive methods of prevention and low cost care.
The committee recommends that the AID program for children's
blindness be funded at a level of $1,300,000.
hiv/aids prevention
The Committee for several years has provided funding and
encouragement to limit impact of the global HIV/AIDS epidemic
in the developing world and Eastern and Central Europe.
However, recent epidemiological reports indicate that the
pandemic continues to worsen dramatically, particularly in
south and southeast Asia and southern Africa. In response,
several other donor nations are increasing their global AIDS
activities and international institutions, notably the World
Bank, are moving AIDS and other infectious diseases to their
priority list. Recently, the Group of Industrial Nations and
the United Nations have become more fully engaged.
As with all AID programs, the fight against HIV/AIDS
requires ``good development partners''. The rapid increase in
HIV infection in many poor countries can be attributed, in
part, to government leaders' refusal to publicly acknowledge
the crisis and to their slowness in dedicating resources to
fight it. Government leaders have a responsibility to their
citizens to foster awareness and education, the causes of
transmission, and the scientifically proven methods to combat
it. All AID country strategies for HIV programs must include
components to encourage behavioral, cultural and social change.
The United States has long led the world's response to HIV/
AIDS and will expand its financial and leadership commitment.
For fiscal year 2002, the Committee directs AID to increase
funding for all of its international AIDS and related TB
activities from not less than $315,000,000 in 2001 to at least
$474,000,000 in 2002. Funding for UNAIDS should also be
increased above its current level. Priority uses of the
additional resources should include microbicides, reduction of
mother-child transmission, support for affected orphans, and
TB. As in past years, AID should utilize to the maximum extent
community-based, nongovernmental organizations that have ``on
the ground'' prevention and care programs.
The Committee recognizes that there is an urgent need for
the development of HIV and STD prevention methods within
women's personal control. Topical microbicides, currently in
trial stages in a number of countries, have emerged in the last
decade as a promising new technology for preventing STDs,
including HIV. Using its existing infrastructure and expertise,
AID can contribute a great deal to enhancing the feasibility of
successful clinical trials in developing countries. At the
urging of Congress, AID substantially increased its investment
in microbicides research and development in 2001, and the
Committee urges AID to make these investments an integral part
of bilateral U.S. HIV/AIDS assistance. The Committee directs
AID to devote not less than $15,000,000 from all accounts to
microbicides research and development.
The Committee recommends that USAID devote appropriate
resources to support efforts to build capacity of the nursing
workforce in sub-Saharan Africa. The Committee recognizes the
utility of a sound nursing corps in addressing AIDS not only as
a disease, but as a public health problem. Nurses and other
health workers are often the first and only contact the
population of developing countries have with the health care
system. In their role, not only can they assist in diagnosis
and treatment of AIDS, but also in fostering behavioral change
and developing care systems that contain the spread of the
disease. Also, the Committee continues to support efforts to
provide a safer blood supply and single-use needles in the
Republic of South Africa and other countries impacted by HIV/
AIDS. These efforts should include evaluation of promising
blood decontamination technologies.
The fight against HIV/AIDS takes place on many fronts. More
education about causes, effect and treatment of HIV/AIDS is
needed in many regions, especially in Sub-Sahara Africa and the
Caribbean. The use of unbiased, accurate, and culturally
sensitive media is one way to improve the spread of information
on HIV/AIDS. The Committee supports programs for independent
media training and public service announcements to meet these
needs.
hiv/aids: care and treatment
The Committee is aware of and supports AID's pilot programs
in the care and treatment of persons with HIV/AIDS and expects
that the number of these pilot programs will expand as
successful models are developed. The Committee encourages AID
to enter into cooperative agreements and parallel financing
alliances with the private sector to obtain needed commodities
for sustained treatment of persons with HIV/AIDS.
hiv/aids: burma and the resurgence in southeast asia
The Committee is concerned that HIV/AIDS is spreading
rapidly in Asia, and that Burma is playing a pivotal role in
its spread. In Thailand, a country thought to have the epidemic
under control, recent evidence shows a resurgence of the
disease. Burma itself faces devastating epidemics of heroin
addiction and HIV/AIDS infection, with the HIV virus spreading
rapidly from intravenous drug users to the wider population.
Last year the Burmese regime officially acknowledged that HIV/
AIDS is a serious problem in Burma; however, it has made no
official effort to contain the disease. The government's tacit
support for heroin production, the virtual collapse of the
Burmese economy, the continuing wars between the regime and
various ethnic groups, and the massive migration of Burmese
seeking safety or work in neighboring countries have all
contributed to the spread of the epidemic.
The Committee believes that conditions in Burma represent a
significant threat to efforts to contain the spread of the
disease in neighboring countries like India, China, Thailand
and even Cambodia. The Committee requests that, within 90 days
after the enactment of this Act, the Agency for International
Development, in consultation with the Department of State,
provide a report to the Committee on the Burma HIV/AIDS
epidemic and proposed steps the U.S. Government could take,
working with other donors and without providing direct support
to the Government of Burma, to address the HIV/AIDS epidemic in
Burma.
hiv/aids: children affected by hiv/aids
AIDS is devastating the family structure in many countries,
leaving millions of children orphaned and more vulnerable to
HIV infection, poor health, little schooling, and even sexual
exploitation. Approximately 600,000 newborns in the developing
world contracted the virus just last year. Presently, there are
5,000,000 orphans in Africa due to AIDS, and by the year 2010
it is estimated that there will be 26,000,000 orphans in Africa
as a result of AIDS. The Committee recognizes that community
childcare through mobilization in high-incidence AIDS
communities is one of the most important interventions
available to provide care and support for the future orphans of
Africa. Therefore, the committee urges AID to favorably
consider a proposal by the private voluntary organization, Hope
worldwide, to replicate and extend its world-famous Soweto
Community Childcare program for children affected by AIDS to
other sites in other cities, including Abidjan, Lagos, and
Nairobi. The Committee strongly supports efforts to assist
these and other children affected by HIV/AIDS, and urges that
not less than $20,000,000 be provided to assist AIDS orphans
and HIV positive children.
hiv/aids: program accountability
The increased funding being made available for HIV/AIDS
programs requires that AID and other federal agencies be
especially focused on accountability for the funds expended.
The Committee strongly recommends that the design and award of
all bilateral and multilateral HIV/AIDS programs from accounts
managed by AID be based on measurable, achievable goals. The
Committee directs that AID transmit a written report to the
Committee not later than March 1, 2002, describing in detail
its plans for utilizing funds allocated for HIV/AIDS programs,
including its proposals for programs in countries with emerging
epidemics, and the benchmarks established to measure the
success of the programs. On the same date, the Director of the
Office of Management and Budget is requested to submit a
parallel report with regard to planned obligations of funds
through a multilateral Health Trust Fund. Such benchmarks
should include, as soon as feasible, the impact of programs on
HIV infection rates and mortality. The Committee expects the
Agency and OMB to formally consult with it on the contents of
the reports not later than January 15, 2002.
hiv/aids summary
The Committee anticipates that at least $40,000,000 for
HIV/AIDS will be funded from the Economic Support Fund,
regional accounts, and accounts administered by the Bureau for
Humanitarian Response. Together with not less than $434,000,000
from the Child Survival and Health Programs Fund, the bill
total for HIV/AIDS should be at least $474,000,000. The
Committee directs that AID include all HIV/AIDS-related
activities, such as TB/HIV tuberculosis prevention and efforts
to prevent and manage STDs, in its reports on achieving these
targets.
other infectious diseases: malaria
The Committee includes not less than the fiscal year 2001
level for the prevention of malaria, a re-emerging global
killer of children and a major impediment to economic
development in many poor countries. The Bureau of Humanitarian
Response is urged to provide not less than $2,500,000 for
malaria from its grant program for private voluntary
organizations, consistent with current practice.
The Committee is aware of a credible proposal for scaling-
up malaria prevention and control activities, addressing the
urgent needs of populations threatened by malaria who are
living in areas of war and civil-disorder, and slowing the
emergence and spread of drug-resistant malaria in regions of
Africa, Asia, and South America. The Committee directs the
Agency to reconsider this proposal forthwith, and to report to
the Committee on the outcome of its deliberations not later
than October 2, 2001.
other infectious diseases: tuberculosis
The Committee recognizes that tuberculosis (TB) is the
major infectious killer of adults in the world, killing between
two and three million each year. This disease could result in
the deaths of up to 30,000,000 people in the next decade. TB
kills more women than any other cause of mortality and is the
major killer of persons with AIDS. Many of these will be
parents, whose orphans will be a burden on already stressed
societies. In addition, the Committee notes the threat to the
United States from this disease due to international travel and
immigration. An estimated 15 million Americans are currently
infected with the TB bacteria. Therefore the Committee includes
in the allocation for other infectious diseases not less than
$70,100,000 from all accounts for programs for the prevention,
treatment, control of, and research on tuberculosis. At least
$5,000,000 should be made available for the independent states
of the former Soviet Union.
The Committee notes that the Agency for International
Development is collaborating with the Gorgas Memorial Institute
to promote regional TB control initiatives designed to address
the global TB epidemic--training, operational improvement, and
new approaches to disease control. The Committee strongly
supports the continuation of this initiative. At least
$2,000,000 is available for these activities during fiscal year
2002.
In its last three reports, the Committee requested AID to
assist Texas and Mexico combat a particularly threatening
outbreak of tuberculosis along their border. The Agency has
been responsive, and the Committee urges continued cooperation
with the Texas Department of Health and relevant offices of the
federal and state governments of Mexico.
other infectious diseases: antimicrobial resistance and surveillance
The Committee supports the efforts of AID and the Centers
for Disease Control to reduce the spread of antimicrobial
resistance. The Committee is aware of the special problems of
infectious diseases among patients hospitalized in Asia, Latin
America, and Africa, and encourages AID to encourage the use of
proven new technologies to combat antimicrobial resistance. The
Committee has been made aware of the work in this area by the
Alliance for the Prudent Use of Antibiotics (antimicrobial
resistance) and the International Foundation for the Reduction
of Infectious Diseases, and suggests that AID cooperate with
the Alliance and the Foundation. In addition, AID is encouraged
to continue improving capacity for surveillance and response to
infectious diseases at the national and local levels.
infectious diseases: collaborative research by university medical
schools
The Committee is aware of and supports the renewed
engagement of many United States university medical schools and
medical research facilities in the global campaign against
infectious diseases, especially those which affect children. As
many contributed greatly to domestic public health progress in
earlier decades, the Committee welcomes their interest in the
new global campaign.
The Agency for International Development and multilateral
health and child survival agencies benefiting from this bill
are urged to give every consideration to detailed proposals
submitted by the relevant institutions cited in a separate
section of this report following the discussion of the
``Development Assistance'' account. The Committee notes with
concern the seeming inability of the Agency to successfully
collaborate, after many meetings with senior officials and
numerous prior year report directives, with Tulane University,
the University of Notre Dame, and Johns Hopkins University on
their joint efforts to limit the spread of malaria.
reproductive health overview
The Committee anticipates that at least $67,000,000 for
reproductive health/voluntary family planning will be funded
from the Economic Support Fund, regional accounts, and accounts
administered by the Bureau for Humanitarian Response. Together
with $358,000,000 from the Child Survival and Health Programs
Fund, the bill total for reproductive health should be at least
$425,000,000, as requested by the President. The Committee
directs that AID include all reproductive health activities,
including those funded from other accounts in this bill, in its
reports on achieving these targets.
reproductive health/voluntary family planning: restrictions
The Committee has continued prior year language in the bill
that requires that none of the funds appropriated in this bill,
or any unobligated balances, be made available to any
organization or program which, as determined by the President,
supports and participates in the management of a program of
coercive abortion or involuntary sterilization. The bill
language also states that funds cannot be used to pay for the
performance of abortions as a method of family planning or to
motivate or coerce any person to practice abortion. Further,
the language indicates that in order to reduce reliance on
abortions in developing countries, population funds shall be
available only to voluntary family planning projects which
offer, either directly or through referral, information about
access to a broad range of family planning methods and
services. An additional provision in the bill requires that in
awarding grants for natural family planning under section 104
of the Foreign Assistance Act, no applicant shall be
discriminated against because of such applicant's religious or
conscientious commitment to offer only natural family planning.
The Committee also has continued prior year language that
states that nothing in the bill is to alter any existing
statutory prohibitions against abortion which are included
under section 104 of the Foreign Assistance Act. Further, the
Committee has continued prior year language which states that
project service providers or referral agents cannot implement
or be subject to quotas or other numerical targets of total
number of births, number of family planning acceptors, or
acceptors of a particular method of family planning. This
provision is identical to language in the fiscal year 2001 Act
under the heading, ``Development Assistance''.
grant to the united nations children's fund (unicef)
The Committee supports efforts to reach the child survival
goals set by the World Summit for Children. In order to
implement these goals, the Committee is recommending that not
less than $120,000,000 of the funds provided under the Child
Survival and Health Programs Fund shall be provided as a
contribution in grant form to the United Nations Children's
Fund. This does not preclude the Agency for International
Development from providing additional funding for specific
UNICEF projects as may be appropriate.
Development Assistance
Fiscal year 2001 level................................ $1,305,000,000
Fiscal year 2002 request.............................. 1,325,000,000
Committee recommendation.............................. 1,098,000,000
The Committee recommends $1,098,000,000 for the general
account for development assistance for economic growth,
agriculture, and trade. The amount recommended is $227,000,000
below the budget request and $76,000,000 above the fiscal year
2001 level, if the 2001 account structure is used. The account
no longer includes population reproductive health, which is now
incorporated within the Child Survival and Health Program Fund,
consistent with the Administration's revised assistance
categories.
Funding in this account includes worldwide activities for
free market economic development, agriculture, rural
development, literacy and basic education for children and
adults, environment, energy, science and technology and other
programs related to longer-term development. Children's basic
education programs were included last year in the Child
Survival and Disease Programs Fund.
The Committee recommends the continuation of bill language
to prohibit the use of funds for any activities in
contravention of the Convention on International Trade in
Endangered Species (CITES) in order to address concerns that
AID funded activities in Zimbabwe are contributing to trade in
elephant ivory.
The Committee recommends the transfer of up to $12,500,000,
from the ``Development Assistance'' account, to support
development credit activities instead of $25,000,000 as
proposed by the President.
basic education
The Committee recognizes that educating children in
developing countries provides the foundation for sustained
economic growth, poverty alleviation, and the creation of
democratic institutions. There is also clear evidence that the
collateral benefits of providing basic education for girls,
including improved child and maternal health, lower fertility
rates, reduced child labor, and increased political
participation, make it one of the most effective expenditures
of U.S. foreign assistance. The Committee strongly recommends a
minimum level of $150,000,000 from this and other accounts for
basic education, and encourages AID to place particular
emphasis on programs that expand access and quality of
education for girls, enhance community and parental
participation in schools, improve teacher training, and build
local management capacity. The Committee also recognizes that
AID's capacity to create and execute innovative and effective
basic education programs suffered disproportionately during the
reduction in personnel over the last decade, and encourages AID
to increase the number of direct hire education staff directly
supporting and managing field programs.
The Committee also recognizes the importance of education
in the fight against HIV/AIDS in developing countries. The
pandemic has severely affected not only school-age children,
but also the teacher populations in sub-Saharan Africa. The
Committee encourages AID to promote approaches to HIV/AIDS
prevention which recognize the central role played by schools
and teachers, including integrating information into curricula,
instituting prevention programs in schools, and focusing on
HIV/AIDS in teacher training institutes.
global Issues: human rights and democracy
The Committee expects AID to give adequate weight to the
human rights and governance practices of recipient countries,
including those reported in the Department of State's annual
Country Reports on Human Rights Practices.Although the
Committee believes that need and U.S. foreign policy goals
should be the primary criteria for determining whether or not a
country should receive assistance, the Committee also believes
that the assistance--whether through nongovernmental
organizations or directly through official channels--will have
a far greater chance of truly helping the citizens in those
countries which respect the rule of law and the rights of their
people. The Committee notes the disturbing recent trend by
leaders of long-time foreign assistance recipients--Zimbabwe,
for example--to undercut democratic processes and to curtail
respect for human rights. Further, a number of traditional aid
recipients are currently involved in military conflicts and
have restricted the basic freedoms of their citizens. AID
should continue to give significant weight to the record of
human rights and democratic development of proposed recipient
countries in the distribution of assistance provided under this
Act.
global issues: literacy and education
The Committee recognizes that expanding access to
education, especially combating child and adult illiteracy, is
critical to long-term development.The Committee supports the
work of Alfalit International, an educational nongovernmental
organization dedicated to promotion of literacy, elementary
education, and community development in Africa and Latin
America. Alfalit's proven record during the past three decades
has helped significantly reduce child and adult illiteracy
throughout Latin America and Africa. The Committee urges AID to
provide $1,500,000 for Alfalit to jointly develop and implement
programs to combat adult illiteracy in countries in which AID
operates.
global issues: energy
The Committee supports AID's proposed investment in public-
private sector partnerships involving hydropower energy
investment in emerging markets and encourages the agency to
vigorously support such activities. The Committee recognizes
the important role that AID fulfills in creating overseas
environments conducive to U.S. investments by encouraging
policy reforms. Such reforms allow U.S. companies and financing
organizations to invest in environmentally sound hydropower and
the energy infrastructure needed for sustained growth.
Involving responsible hydropower in the global energy mix may
also help mitigate climate change.
global issues: the role of girls and women in development
The Committee recognizes the importance of improving the
economic and social situation of women and girls through
respect for legal rights and expanded access to educational
opportunities, adequate health care, and credit. The Committee
supports the work of AID's Office of Women in Development in
these areas. Therefore, the Committee recommends $15,000,000
for AID's women in development programs, including funds
implemented by central offices and through overseas missions.
Although AID is to be commended for devoting considerable
attention to the needs of women and girls, additional attention
is needed throughout the Agency from all funding sources,
especially in areas such as Lebanon, Pakistan, and Central
Asia.
An important component of women in development programs is
the identification of, and effective support for, women leaders
in developing and post-conflict societies. These societies will
reach their full potential only when all citizens are given
equal opportunity to take leadership roles in political and
civic institutions. The Committee commends the efforts of
organizations such as Women's Campaign International, the
International Women's Democracy Center, and the Vital Voices
Global Partnership to ensure that women are given equal
opportunity to participate in emerging democratic processes.
The Committee recommends that AID expand its alliances with
organizations that train women leaders as it moves toward a
greater emphasis on conflict prevention and developmental
relief activities.
global issues: biodiversity
The Committee applauds the accomplishments of AID in
integrating biodiversity and forest management in its economic
and social development programs. The Committee urges AID to
consider biodiversity a high priority and is concerned with the
Administration's budget request for biodiversity programs for
fiscal year 2002. The Committee urges AID to provide not less
than $70,000,000 in fiscal year 2002 for its biodiversity
programs.
The Committee again recommends that AID provide $500,000 to
support the Peregrine Fund's Neotropical Raptor Center in
Panama to conserve birds of prey in the Panama Canal watershed
area. The Peregrine Fund, established in 1970 as a non-profit
organization, has partnered successfully with AID in the past.
The Committee notes that the Center expects to receive
significant private financing for this project as well.
The Committee encourages AID to support the work of Earth
University in San Jose, Costa Rica. For more than 10 years,
Earth University has worked with more than two dozen U.S.
universities on research projects designed to balance
development and conservation in the areas of tropical forest
preservation, reforestation, and biodiversity.
economic growth: overview
The Committee considers free market economic growth, and
the AID programs designed to lead directly to growth, the
Agency's most important work in Africa, Latin America and Asia.
Simply put, without sustained economic growth, AID's
development programs for health, population, environment and
other purposes, can have only marginal long-term benefits in
poor countries.
In the near-term, the Committee continues to support the
use of AID resources for health improvement through the ``Child
Survival and Health Programs'' account. But improved social
conditions of children matter only if the future economies of
these countries can provide employment for these healthier,
better educated citizens. Therefore, the Committee encourages
AID to increase funding for free market economic development in
its development programs in each of these regions.
The Committee continues to support AID technical assistance
programs to encourage macro-level economic growth. These
include programs to assist with privatization of state-run
industry and legal and regulatory reform to modify trade and
tax barriers which stifle local entrepreneurs and which deter
U.S. investment. In addition, AID technical help for improving
energy, transportation, telecommunication, and finance sectors
is key to directly improving the economic climate of poor
countries. Essential to this, of course, AID must continue to
search out reform-minded government leaders without whom these
programs cannot succeed.
The Committee supports the efforts of AID to better
coordinate with the US Trade Representative and other concerned
agencies the significant amounts of aid already being committed
to assist other countries to strengthen their trade-related
laws and regulatory regimes. It is in the United States
national interest to ensure that relevant economic growth funds
are programmed to complement trade negotiating objectives.
AID non-project assistance programs, or cash grants, to
encourage sectoral reform or to ease transitions from state
control to private ownership in poor countries have had only
limited success. When governments are already committed to
reform, non-project assistance can boost these efforts in the
short-term. However, attempts to encourage non-reformist
governments into changing bad policies by offering cash
enticements will not work. The Committee discourages the use of
non-project assistance where access to American technical know-
how is in higher demand than direct cash assistance.
economic growth: microenterprise
Microenterprise, while unable to alter economic indicators
on a national scale, can significantly improve personal and
family incomes, thus providing money for school fees, health
supplies, and more nutritious food, and stimulating economic
growth at the community level. The Committee expects AID to
reach the authorization level enacted by Public Law 106-309.
Also, programs of importance to economic growth, such as girls'
and women's education and training programs, can assist in
opening the marketplace to females.
economic growth: agriculture and rural development
The Committee believes that agricultural development is
central to creating free market economic growth in developing
countries. By helping families grow more food that is more
nutritious, hunger, malnutrition, and disease among women and
children become less prevalent. By increasing incomes of rural
families, the engine of economic development in these countries
is being started. The Committee recognizes that AID has again
included agricultural development as one of its key goals for
its development programs.
The Committee believes that sustainable agricultural
development is central to economic growth in Africa and to the
advancement of many of the development goals addressed in this
bill. Two-thirds of African families live and work in rural
areas and make a living farming or in rural enterprise. Helping
poor rural families grow more food to eat means that hunger,
malnutrition and disease become less prevalent (especially
among women and children). Helping families grow more food to
sell means that they can increase their incomes, participate in
trade, and spur overall African economic growth. This
ultimately makes them better trading partners for the U.S.
The Committee particularly supports collaborative
partnerships of U.S. agribusiness, non-government
organizations, and universities with the African private
sector. Projects to promote these partnerships leverage AID's
development resources by increasing private sector investment
of resources in developing countries, increasing economic
growth and fostering stronger US/African trade and investment
ties. The Committee recommends that AID emphasize private
sector development in its programs such as support for producer
associations, as well as trade, investment, finance and
information systems. For their part, U.S. universities can make
an important contribution in research, technology and human
capital development geared to economic growth.
To enhance the U.S. response to the World Food Summit
commitment to help cut hunger in half by 2015, the Committee
also recommends that AID emphasize the critical needs of the
rural sector (where most of the poor and hungry reside) and
increase investment to that end in its programs that address
rural health (including AIDS and child survival), girls
education, democratization, microenterprise development and the
environment.
economic growth: development of credit unions and cooperatives
The Committee is aware of the importance of credit unions
and cooperatives in strengthening democratic, grassroots
approaches for economic development. The Committee continues to
support the sharing of U.S. cooperative expertise in efforts to
help lift low income people out of poverty through mobilization
of equity, savings, and private initiative for community-based
development. Credit Unions and cooperatives administer 70
successful programs in 67 different countries, making use of
$160,000,000 to leverage an additional $300,000,000 through the
mobilization of local contributions.
As a critical component of technical capacity building and
partnerships with U.S. credit unions and cooperatives, the
Committee encourages the Office of Private Voluntary
Cooperation to maintain funding at $6,000,000 for cooperative
development organizations in fiscal year 2002.
In response to authorizing legislation enacted last year
(Public Law 106-309), AID and the cooperative development
community are exploring new opportunities for expanded
partnerships. The Committee looks favorably on the following
initiatives: programs to better utilize overseas remittances in
Mexico; the utilization of cooperative approaches that mobilize
communities that are adversely affected by the HIV/AIDS
pandemic for self-help economic and social development, the use
of cooperatives in utility privatization; and use of AID's
development credit program by cooperatives.
The Committee is aware of the World Council of Credit
Unions' (WOCCU) international credit development activities,
and notes that WOCCU has cooperated with AID in the past to
provide financial services to the communities previously
lacking them in 20 developing countries. WOCCU currently is
planning to expand its activities into South Africa and Mexico.
The Committee requests that AID consider promptly WOCCU's
proposals for programs in South Africa and Mexico.
The Committee recognizes that cooperative and credit union
development takes time to yield successful results, and is
concerned that AID interpretations of GPRA requirements
specifying short-term results do not allow adequate time for
implementation, thus, hampering the likelihood of successful
programs over the longer term.
economic growth: international intellectual property institute
The Committee encourages AID to provide adequate funds to
support the International Intellectual Property Institute
(IIPI) in its efforts to help developing countries establish
the minimum international standards necessary to protect and
attract U.S. intellectual property industries. The past decade
has seen tremendous economic growth in intellectual property
industries such as software, music and pharmaceuticals. Yet,
because of an inability to provide protection for such
property, developing countries have been largely unable to
participate in this economic expansion. AID support for IIPI
training and technical assistance programs can promote sound
intellectual property systems which protect American businesses
and which foster free economic growth in developing countries.
latin america and the caribbean: overview
The Committee is pleased the Agency for International
Development responded to report language from previous years
urging that greater emphasis be provided for programs in Latin
America and the Caribbean.
The Committee has been made aware of the United States-
Honduran Presidential Program of Investments Alliance (USHPPIA)
and encourages AID to support this initiative. The
Administrator of AID is urged to work with the Metro Vision
Economic Partnership for the implementation of this program.
AID shall report to the Committee not later than March 1, 2002,
regarding this program and is encouraged to include the USHPPIA
in its fiscal year 2003 budget request.
latin america and the caribbean: Mexico
The Committee urges the Agency for International
Development and the Department of State to allocate additional
funds for economic growth, rural development, and trade
activities in Mexico. An energetic response to expanded
opportunities for economic cooperation with Mexico under its
new Administration is likely to require more than the
$6,185,000 requested for Development Assistance and $10,000,000
for the Economic Support Fund in fiscal year 2002. The
Committee fully supports an expansion of the bilateral program
of economic cooperation between Mexico and the United States.
latin america and the caribbean: guatemala
The Committee renews its support for the resources
necessary to help consolidate the Guatemala peace process by
promoting national reconciliation, the cornerstone of United
States policy toward Guatemala. As the Administration designs
and awards contracts and grants for its fiscal year 2002
combined program of $34,710,000 in development assistance,
child survival and health, and economic support, the Committee
requests that it take into account the continuing environment
of criminal impunity and the increase in attacks against
religious and human rights organizations. Renewed emphasis on
improving the Guatemalan civilian police force and judiciary
must be a top priority of U.S. assistance to strengthen law
enforcement and modernization of the state. The Committee urges
the Secretary of State to press the Government of Guatemala to
carry out full investigations, leading to the arrest and trial
of the perpetrators, of the recent murders of Sister Barbara
Ann Ford and other U.S. citizens in Guatemala.
Latin america and the caribbean: parks in peril
The Committee notes its strong support for the existing AID
Parks in Peril program, a partnership with the private sector
to promote biodiversity conservation in imperiled ecosystems
throughout Latin America and the Caribbean. The Committee
believes that protection of rare ecosystems is important from
an environmental standpoint and also serves the long-term
economic interests of these nations and the interests of the
United States. AID/Parks in Peril has worked at 37 sites in 15
different countries, comprising more than 28 million acres. It
has made significant progress at turning ``paper parks''--those
created by governments, but not adequately maintained--into
genuine protected areas. Since its inception, Parks in Peril
has received $37,500,000 from central and mission AID funds,
formally matched by more than $14,300,000 from The Nature
Conservancy, foreign partners, and foreign governments, and has
indirectly leveraged more than $268,000,000 from non-AID
sources. The Committee welcomes the prospect of ``PiP 2000'', a
renewed program that seeks to extend the influence of Parks in
Peril more broadly.
Latin America and the Caribbean: Corps of Engineers
The Committee is pleased that the State Department and AID
have begun to utilize the planning, engineering and design,
environmental, and technical capabilities of the U.S. Army
Corps of Engineers, particularly in Latin America where the
Corps has existing field offices in Honduras, El Salvador,
Panama, Colombia, Bolivia, and Peru. A partnership between the
Corps and AID that takes advantage of these capabilities can
significantly contribute to the strategic interests of the
United States. The Committee intends that the State Department
and AID use the Corps to a greater extent to support such
activities as child survival (water and sanitation);
development assistance; disaster assistance; and transition
initiatives. Further, the Committee expects that the Department
of State and AID will not establish additional engineering
capabilities for activities that can be accomplished by the
Corps. The Committee again requests that AID and the Department
of State report separately within 60 days of enactment into law
of this Act regarding plans to develop programs with the Corps
during fiscal year 2002, including steps to develop a
Memorandum of Agreement with the Corps.
Africa: horn of africa
The Committee remains concerned about the fragile food
security situation in the Horn of Africa. Famine conditions
threaten more than 16 million people in Ethiopia, Sudan,
Somalia, Kenya, Uganda and Djibouti. Conflict has exacerbated
these famine conditions by hindering the delivery of
humanitarian assistance and by creating scores of internally
displaced people and refugees.
The Committee supports the efforts of The International
Research Institute for Climate Prediction (IRICP) to provide
assistance to AID's Office of Foreign Disaster Assistance in
predicting likely effects of weather patterns on Africa--
especially the Greater Horn of Africa region. To further this
important work, the Committee recommends that AID support
implementation of a modeling effort focused on climate impacts
on water, including water supply, water-borne diseases, and
agriculture, in collaboration with the Nairobi Drought
Monitoring Center. The Committee believes these efforts can
help achieve greater food security and stability in the region.
The Committee encourages AID to consider a similar climate
prediction monitoring program for southern Africa.
Africa: Assistance to Southern Sudan
The Committee believes that the Administration can and
should do more to support the democratic opposition in Sudan
with the ultimate goal of bringing peace to the people of
southern Sudan. The Committee supports the inclusion of Sudan
on the list of terrorist nations and encourages the
Administration to step up efforts to isolate the Khartoum
regime. Further, the Committee is deeply concerned about the
credible reports of trafficking of human beings and slavery in
Sudan.
The Committee continues its support for Operation Lifeline
Sudan (OLS), a multilateral effort to provide desperately
needed food and humanitarian relief to southern Sudan, funded
in part by AID's Bureau of Humanitarian Response (BHR).
However, without the consent of the government of Sudan, OLS is
unable to provide desperately needed humanitarian aid to many
opposition-controlled regions of Sudan. The Committee urges AID
to significantly increase resources to nongovernmental
organizations working in areas underserved by OLS and commends
the Administration for doing so in recent years.
The Committee also supports AID's Sudan Transitional
Assistance for Rehabilitation (STAR) program, begun in 1998, to
assist in the establishment of functioning local government and
in the operation of small-scale municipal projects. The
existing STAR program has supported training for leaders in the
National Democratic Alliance in the role of local government
administration and in human rights. The Committee recommends
that sufficient funds be made available to promote
democratization and peace and reconciliation initiatives in the
opposition controlled territories of southern Sudan during
fiscal year 2002. The purpose of these funds should be for
improved local civilian administration and governance and to
reduce conflict and ensure peace and unity in southern Sudan.
africa: sierra leone and liberia
The Committee remains concerned by reports that several
governments in the region, including Liberia, continue to allow
for lethal military equipment to be provided to the rebels in
Sierra Leone. This action has led to the further
destabilization of the region, hindered humanitarian relief
delivery, and has complicated international efforts to end the
conflict in Sierra Leone. The Committee urges the
Administration to make every effort to encourage governments,
especially the Liberian Government, to end their military
support for Sierra Leone rebels. The Committee has once again
included bill language requiring that all assistance to Liberia
be subject to the Committee's special notification
requirements.
The Committee has also included bill language prohibiting
assistance to any government if the Secretary of State
determines there is credible evidence that such government has
provided military support or equipment, directly or through
intermediaries, to the Revolutionary United Front (RUF), or any
other group intent on destabilizing the democratically elected
government of the Republic of Sierra Leone or if there is
credible evidence that such government has aided or abetted,
within the previous six months, in the illicit distribution,
transportation, or sale of diamonds mined in Sierra Leone.
The Committee is aware of the dire situated faced by the
closure of the JFK Memorial Hospital in Monrovia, Liberia and
urges AID and the Department of State to promptly address the
health crisis in Liberia and examine options to reopen the JFK
Memorial Hospital. The Committee also endorses proposals to
promote democracy and non-governmental organizations, such as
the Archdiocese of Monrovia, in Liberia.
africa: zimbabwe
The Committee notes that in Zimbabwe the rule of law is
breaking down as the ruling party uses the state machinery to
intimidate, torture, and often murder its citizens. Such acts
are unacceptable in a country that considers itself to be a
part of the international community of free nations. The
Secretary of State is commended for his vocal intervention on
behalf of a democratic Zimbabwe and is urged to follow through
by mobilizing all available tools to encourage peaceful change
by reinforcing the beleaguered democratic institutions in
Zimbabwe. The Committee strongly supports assistance that seeks
to strengthen parliament, an independent media, and non-
governmental organizations unaffiliated with the ruling party.
The State Department is encouraged to support financially
international observation and monitoring of the upcoming
presidential elections in Zimbabwe.
africa: higher education
The Committee considers children's basic education the
priority for scarce AID education resources in Africa. However,
the Committee recognizes the importance of higher education to
economic growth and supports the work of AID through its
Advanced Training for Leadership and Skills (ATLAS) program
which brings African students to American colleges and
universities. The Committee is pleased that AID will soon begin
an open and competitive procurement for the continuation of its
ATLAS program in Africa. The Committee is interested also in
the development of indigenous African colleges and universities
and requests AID to consider the merits of supporting the
creation of a new women's university in Africa, designed to
train African women in health sciences, education, agriculture,
and business.
african initiatives: education for development and democracy Initiative
(EDDI) and the african technology and workforce development initiative
(AFTECH)
The Committee recognizes the works of two exceptionally
promising initiatives in Africa: the Education for Development
and Democracy Initiative (EDDI) and the African Technology and
Workforce Development Initiative (AFTECH). Through partnerships
and entrepreneurial training, with a focus on girls and women,
EDDI now operates in 31 countries and has American partners in
29 states. Scholarships have been awarded to more than 6,000
girls and another 6,000 are poised to receive scholarships.
There are over 61 higher education partnerships, 20 technology
partnerships and four school-to-school partnerships. EDDI
continues to encourage its partners to seek support from the
private sector. To continue its work, the Committee urges AID
to consider proposals for as much as $40,000,000 between now
and the end of fiscal year 2003 to support EDDI activities.
A long-time AID implementer, the African-American Institute
has joined with the Nairobi-based African Virtual University
(AVU) to employ new information technologies to accelerate
workforce development in Africa. Under the AFTECH Initiative,
the AVU would deliver higher education and training content
from cooperating American institutions to Africans in the
places where they live and work. The AVU was initially funded
by the World Bank and by other donors. To expand its work, it
needs both the proven training experience of the African-
American Institute and support from AID missions and central
bureaus. The Committee urges AID, and especially EDDI, to
favorably consider proposals by AFTECH under the same
conditions as are discussed later in this report for United
States university support for developing countries.
farmer-to-farmer program in Africa
The Committee notes with approval efforts made this year by
AID in collaboration with the Department of Agriculture to
expand the Farmer-to-Farmer Program in Africa. Programs that
link American universities and producers with those of other
nations are valuable tools in providing meaningful assistance
to people at a critical period of economic development. The
Committee encourages the Agency to expand such programs as it
increases its focus on agriculture and rural development.
asia: overview
The Committee notes that Asia (beyond the Middle East) is a
region of paramount strategic and economic importance to the
United States. While Asia represents the greatest potential for
growth in U.S. exports and investment opportunities, systemic
legal, social and economic weaknesses throughout the region
continue to threaten these interests. The Committee is
concerned that, while the economy of the region is largely
recovering from the Asian financial crisis, South and East Asia
still contain the largest concentration of poor people in the
world, as well as the greatest land mass at risk of
environmental degradation through poorly managed growth.
The Committee reiterates that some assistance programs,
such as AID's support for Vietnam's implementation of its
Bilateral Trade Agreement with the United States, promote sound
economic growth. Such technical assistance in support of
updated commercial policies and legal structures also promotes
United States trade with, and investment in, Asia. This
approach to development assistance should continue to be a high
priority, and the Committee again directs the Agency to make
available, for a second year, $60,000,000 for this purpose. The
Committee requests a brief report as soon as practicable on
utilization of the $60,000,000 for economic growth in Asia that
was provided in the fiscal year 2001 bill. The Agency is urged
to provide sufficient operating expenses to effectively manage
and oversee economic growth and other commercial and trade
related programs in Asia, especially those in countries where
AID does not have a field mission presence.
private and voluntary organizations
The Committee continues to support private and voluntary
organizations and cooperatives in the delivery of grassroots
assistance. The Committee is aware that AID has begun to rely
more heavily on contracting arrangements for large sector-wide
programs, rather than grant programs that utilize the special
expertise and local knowledge of PVOs and cooperatives.
The Committee continues its strong support for adequate
funding for AID's Office of Private and Voluntary Cooperation
(PVC) in fiscal year 2002 at its current level. PVC manages
competitive grants for child survival, microenterprise,
economic growth, cooperative development and the Farmer-to-
Farmer program.
american schools and hospitals abroad (asha)
The Committee directs AID to provide not less than the
amount provided in this Act for the American Schools and
Hospitals Abroad (ASHA) program in fiscal year 2001. The
Committee directs that none of these funds be reserved for
programming in any future fiscal year. All funds are to be
allocated and obligated in fiscal year 2002. The Committee
further expects that support will be continued, as new
resources are needed, for traditional recipients in countries
such as Lebanon, Israel, and Egypt. The Committee expects AID
to keep it currently informed regarding institutions which have
received ASHA funding in previous years, but which continue to
have significant unexpended balances. In addition, funds should
be made available for other deserving institutions in all
geographical regions as part of a competitive process.
cass scholarship program
The Committee continues to support the work of the
Cooperative Association of States for Scholarships (CASS) and
supports funding for CASS at least at the level specified in
its cooperative agreement with AID. The Committee encourages
AID to work with CASS to meet the current demand from existing
program countries, and to accommodate requests from several
additional countries for services provided by the program.
collaborative research support programs
The Committee supports the continuation of the
collaborative research support programs (CRSPs) and expects AID
to increase funding for the CRSPs in fiscal year 2002. The
Committee believes that CRSPs, such as the Peanut CRSP
established in 1982, are clearly one of AID's best investments,
funding for which should be increased rather than reduced. The
Committee notes that agricultural research and development has
led to greater economic development, increased income, and a
more available food supply for the world's poor.
international fertilizer development center
The Committee strongly supports the fertilizer-related
research and development being conducted by the International
Fertilizer Development Center (IFDC) and urges the
Administrator of AID to make $2,300,000 available for the core
grant to IFDC, a center established to support AID.
housing, shelter, and urban activities
The Committee commends the progress made by the Eastern
European Real Property Program in the Europe and Eurasia Bureau
since 1992. As the program expands into other regions as the
International Real Property Program (IRRP), the Committee
recommends that other AID regional bureaus and missions
seriously consider cooperation with the IRRP as housing,
shelter, and urban activities are included in country
strategies.
dairy development
The Committee continues its strong support for dairy
development and urges AID to fund new projects in fiscal 2002
at the level provided in fiscal years 2000 and 2001. The
program has helped the US dairy industry become more
competitive through promoting American technology, equipment,
inputs and industry-based technical assistance in developing
and market transition countries. At the same time, the program
has assisted producers, small dairies and cooperatives in
developing and transitioning economies for increased household
incomes and nutrition, particularly women, infants and
children.
The Committee directs AID to place greater emphasis on
programs that link economic development programs with increased
exports of US dairy products such as food ingredients, whey,
non-fat dry milk and specialty products. Opportunities for
these programs are particularly evident in Mexico, Central and
South America. Examples include strengthening distribution
networks; promoting indigenous products that use U.S. dairy
ingredients; and building demand for dairy products though
complementary USDA surplus dairy programs.
community-owned telecommunications
The Committee believes that ensuring that developing
countries, especially rural areas of these countries, have
access to modern methods of communications is important to
economic growth. The Committee notes that community-owned
telecommunications systems, as have been successfully built in
rural America, are effective in providing this access. The
Committee therefore, recommends that AID provide funding for
community-owned telecommunications projects, especially where
viable in South and Central America through programs like the
Power Line Communication Rural Electric initiative, and that it
rely upon the direct experience of U.S. telephone cooperatives.
agency response to requests for information
The Agency for International Development and the Department
of State are directed to respond within 15 days to requests by
the Committee for additional information regarding programs,
projects, and activities in the budget justification and
reprogramming requests. Such information may include the
identification of and funding provided to domestic and foreign
cooperators, grantees, and contractors under programs,
projects, and activities that are managed by regional and other
central bureaus, missions, and embassies. The Committee expects
AID to maintain a publicly accessible electronic database that
reflects current information and financial data regarding its
activities.
international executive service corps
The Committee supports the excellent work of the
International Executive Service Corps (IESC), which since 1964
has undertaken more than 22,000 projects in 120 nations by
utilizing volunteers to assist in business development,
economic growth, and technology transfer. The Committee is
concerned that AID has underutilized the IESC as a development
partner in recent years and again directs AID to renew its
commitment to the IESC to ensure expansion of its projects in
sub-Saharan Africa and in Latin America and the Caribbean. AID
is urged to restore an adequate core grant for the IESC in
order to ensure its continuing viability.
torture treatment centers
Supporting treatment centers as permanent national
institutions is the best way of providing treatment services to
torture victims and advocating for the elimination of torture
globally. Accordingly, the Committee recommends $10,000,000 for
AID to support foreign treatment centers for victims of torture
as authorized by the Torture Victims Relief Act and the Torture
Victims Relief Reauthorization Act of 1999.
The Committee commends AID for launching a new program to
support foreign treatment centers through an allocation of
$1,500,000 for fiscal years 2000-2002. The Committee notes,
however, that many of the centers operate on or near the brink
of bankruptcy. For those centers located in countries where the
government has practiced torture, they also face political
hostility from their governments. The Committee recommends that
AID significantly increase its direct financial support for the
centers' basic treatment services while maintaining an adequate
level of support for training and technical assistance. The
Committee directs AID to report on implementation of this
recommendation not later than February 15, 2002.
The Committee requests AID to report within 60 days of
enactment of this Act on the extent of assistance provided to
victims of mob violence and torture in Zimbabwe, especially
African workers on illegally occupied commercial farms.
united states university support for developing countries
The Committee has received a number of requests to fund
specific programs, projects, and activities at or through
American institutions of higher education. The Committee
strongly supports the funding of activities that support our
international development assistance and foreign policy goals.
The Committee has reviewed many concepts proposed for funding.
The Committee strongly recommends that the Agency for
International Development and/or the Department of State (as
appropriate for the proposed project) consider favorably
proposals submitted by the following organizations. In doing
so, the Committee expects that competitive procedures will be
followed with regard to each, to the maximum extent possible.
Unless a proposal demonstrates a unique, innovative, or
proprietary capability, or demonstrates special considerations
that justify limited or non-competitive treatment, the
Committee expects that competitive procedures will be applied
with regard to the proposals on the list that follows. The
Committee also expects AID to give priority to proposals that
are well conceived, including those with realistic budgets and
achievable objectives.
Within 60 days after the submission of the initial report
required by section 653(a) of the Foreign Assistance Act, the
Agency for International Development shall submit a report to
the Committee on the status of each activity identified below.
Such report shall include: (1) the status of a funding proposal
by the organization associated with each activity; (2) the
degree to which the proposal is consistent with United States
development assistance and foreign policy goals for the country
or region in which the activity would take place; (3) the
degree to which matching or other funds would be provided by
the organization to complement the Federal contribution; (4) to
the extent known at the time, any decision by AID or the
Department of State on funding the activity, including the
proposed funding level; and (5) any other relevant information
deemed important by AID or the Department of State. The
Committee also expects to receive a second report on the status
of these proposals no later than May 1, 2002. In addition, the
Committee requests that AID identify an office or organization
within the agency, or within the Department of State if
appropriate, to which inquiries can be directed on the status
of these proposals.
With the foregoing in mind, the Committee recommends the
following proposals for AID's active consideration:
a proposal by Wayne State University on behalf of its
International Partnerships in Public Health;
a proposal by Mississippi State University on behalf
of its International Agribusiness Development Program;
a proposal by Loma Linda University for its
healthcare programs in developing countries;
proposals by Marquette University's project to train
a sustainable nursing workforce for HIV/AIDS Care and
Counseling in Kenya, and by its Les Aspin Center for
Government for continuing training in democracy,
leadership, and HIV/AIDS education in Kenya, Ghana, and
Nigeria (this matter was addressed in the fiscal year
2001 Committee report, and the Committee is very
concerned that the Agency for International Development
has not responded in a positive manner to this issue in
the past year);
a proposal by a consortium of schools of tropical
public health at Tulane University, the University of
Notre Dame, and Johns Hopkins University to expand
programs to reduce the global reemergence of malaria;
proposals by George Mason University on behalf of its
School of Nursing for enhancing ongoing activities in
Nicaragua and on behalf of its School of Law to
establish a Center for the Study of Terrorism and Human
Slavery;
a proposal by a consortium of Washington State
University, Oregon State University, and South Dakota
State University with the International Maize and Wheat
Improvement Center to enhance a Food Security
initiative in Central Asia and the Caucasus region;
a proposal by the University of Arizona to establish
a US-Mexico Border Research Institute and to
participate in AID's environment programs and the
Department of State narcotics control programs
conducted jointly with Mexico;
a proposal by Florida A&M; University to fund a
distance learning education program in Ghana;
a proposal by Johns Hopkins University-School of
Advanced International Studies to expand its research
on and documentation of the scope of international
trafficking in women and children by its Protection
Project;
a proposal by Florida International University to
establish an Andean Alternative Development Research
project;
a proposal by St. Thomas University of Miami on
behalf of its Foundation for Democracy in Africa to
promote HIV/AIDS prevention activities in Africa;
a proposal by the University of Miami-Institute for
Cuban and Cuban-American Studies to participate in the
Cuban Transition Project;
a proposal by Arizona State University on behalf of
its US/Andean Partnership for Science Education;
a proposal by LaRoche College-Pacem in Terris
Institute to expand its international private/public
scholarship programs;
a proposal by New York University-Robert F. Wagner
School for Public Service to establish distance
learning and communications technology programs at an
International Center for Democratic Public Service;
a proposal by the University of New Orleans in
partnership with the Louisiana Technology Council to
develop a technology training program in Latin America
and the Caribbean;
proposals by Louisiana State University to develop
mariculture in Namibia and by its School of Law-
Commercial Law Program of the Americas to support
intra-hemispheric trade;
a proposal by City University of Bellevue,
Washington, for a new center that will facilitate its
existing distance learning program and expand distance
learning throughout eastern Europe;
a proposal by San Diego State University to develop a
Middle East and Mediterranean Desert Development
Program to focus on expanding regional cooperation in
combating growing desertification in the Middle East
and southern Mediterranean region (this matter was
addressed in the fiscal year 2001 Committee report, and
the Committee is very concerned that the Agency for
International Development has not responded in a
positive manner to this issue in the past year);
a proposal by Florida State University to fund a
distance learning program of instruction in basic legal
principles for students and professionals in central
Europe;
a proposal by the National Center for Computational
Hydroscience and Engineering (NCCHE) at the University
of Mississippi for the purpose of transferring state of
the art technology to the Polish Academy of Sciences,
through programs to enhance waterways navigation
safety, flood prediction and prevention, water
resources engineering, environmental and ecological
impact assessment, and soil conservation;
a proposal by the State University of New York for
its participation in a collaborative undertaking in the
field of advanced materials involving also the New York
Centers of Technology, Moscow State University, and
various private businesses;
a proposal by the University of Northern Iowa to
expand the Orava Project in eastern Europe; this
project has successfully worked with educators in
Slovakia to incorporate democratic concepts and
practices into schools and teacher education programs;
and
a proposal by Joslin Diabetes Center to partner with
Mansoura University in Egypt to address the growing
public health problem with diabetes in Egypt.
International Disaster Assistance
Fiscal year 2001 level................................ $165,000,000
Emergency supplemental funding.................... 135,000,000
Fiscal year 2002 request.............................. 200,000,000
Committee recommendation.............................. 200,000,000
The Committee recommends $200,000,000 for the International
Disaster Assistance account, the same amount as the request.
The Committee recognizes that improved disaster prevention,
mitigation, and preparedness techniques are central to reducing
the need for disaster assistance in future years. The Committee
recommends that at least $1,000,000 each be allocated for India
and for El Salvador for disaster preparedness activities.
el salvador reconstruction
The Committee has approved a 22 percent increase above the
current level in order to accommodate an increase above the
request for post-earthquake reconstruction projects in El
Salvador, primarily through municipal governments and private
voluntary agencies. The additional amount provided for El
Salvador through this account is in addition to funds requested
for El Salvador under this and other headings in the bill. The
Committee notes that section 492(b) of the Foreign Assistance
Act provides the President with the authority to obligate up to
$50,000,000 from other development assistance accounts
including the Economic Support Fund in order to provide
disaster assistance, if necessary.
afghanistan
The Committee is alarmed by credible reports about the
severity and extent of the emerging humanitarian crisis in and
around Afghanistan. The deepest and most extensive drought in
30 years has devastated a population already in stress after 22
years of an especially destructive war and misgovernment. A
directive from the leader of Afghanistan's Taliban to cease
opium poppy production has been obeyed, having the effect of
reducing the income available to purchase what food is
available for sale in local markets. Paradoxically no
compensation or alternative development has been offered by the
international community, as has been done in Bolivia and many
other former drug-producing nations.
To avoid possible starvation, Afghans are leaving their
home villages, forming huge concentrations of refugee and
internally displaced person (IDPs). A large percentage of IDPs
and urban populations in the country now depend for survival on
food donations from abroad, primarily from the United States,
directly, or through American donations to the World Food
Program.
Of special concern to the Committee is the situation in
Pakistan where as many as 200,000 new refugees have arrived
since September, joining the 2 million Afghans who have been
accepted by Pakistan since 1979. Most of the new refugees are
living in appalling conditions, with poor sanitation and little
water or suitable shelter. The Committee urges the State
Department to place the refugee crisis in Pakistan at a higher
level of priority, to urge other industrial nations to increase
assistance, and make available additional funds from the
international disaster and migration and refugee accounts,
allowing international and private relief agencies to better
cope with the crisis.
The Committee urges the AID Office of Foreign Disaster
Assistance to continue to negotiate an interim agreement with
the County of Los Angeles Fire Department urban search and
rescue team for overseas deployments. Once concluded, the
interim agreement should remain in effect until such time as
OFDA holds an open competition to meet its requirements for
technical expertise in urban search and rescue. The results of
the competition should reflect an appropriate geographic
balance, with teams selected from the Pacific and Gulf-Atlantic
coasts of the United States, as first directed in House Report
106-254 in July, 1999.
The Committee has for several years included reconstruction
among the activities that could be funded through the disaster
assistance account. The Committee requests two one-time reports
from the Administrator of AID: within 30 days of enactment of
the bill, a report on the planned allocation of International
Disaster Assistance Funds, including an appropriate amount for
reconstruction activities proposed to be undertaken for victims
of natural disasters; and within 60 days of enactment, a report
on the Agency's recommendations for future budgeting for
developmental relief to alleviate ongoing complex humanitarian
disasters, such as in Sudan, from the disaster assistance and
other AID-managed accounts.
Transition Initiatives
Fiscal year 2001 level................................ $50,000,000
Fiscal year 2002 request.............................. 50,000,000
Committee recommendation.............................. 40,000,000
The Committee recommends $40,000,000 for this account,
compared to the budget request of $50,000,000. The Committee
does not preclude AID's Office of Transition Activities from
using resources transferred from other development accounts in
this Act. Also, the Committee requests that AID report on a
semi-annual basis the expenditure and specific use of funds by
OTI.
In its fiscal year 2000 report, the Committee noted that
AID's Office of Transition Initiatives (OTI) activities were
consuming an ever-increasing part of the International Disaster
Assistance account. A separate account was established for core
OTI activities.
As the AID Administrator moves to increase the Agency's
focus on conflict prevention and development relief, the
Committees expect to be fully consulted in advance on the role
of OTI, the Office of Foreign Disaster Assistance, the Office
of Private and Voluntary Cooperation, and the Office of Food
for Peace.
Development Credit Authority
(including transfer of funds)
program account
Fiscal year 2001 level................................ $1,500,000
(by transfer)..................................... (5,000,000)
Fiscal year 2002 request.............................. ................
(by transfer)..................................... (25,000,000)
Committee recommendation.............................. ................
(by transfer)..................................... (12,500,000)
administrative expenses
Fiscal year 2001 level................................ $4,000,000
Fiscal year 2002 request.............................. 7,500,000
Committee recommendation.............................. 7,500,000
For fiscal year 2002, the budget request proposes merging
AID's two existing credit programs into one consolidated
Development Credit account. This single program would include a
consolidated credit administrative budget. The Committee
supports consolidation of the Micro and Small Enterprise
Development (MSED) account as well as administrative expenses
associated with management of the existing Development Credit
Authority and recommends $7,500,000 for administrative
expenses, the same as the requested level.
Payment to the Foreign Service Retirement and Disability Fund
Fiscal year 2001 level................................ $44,489,000
Fiscal year 2002 request.............................. 44,880,000
Committee recommendation.............................. 44,880,000
The Committee has provided the budget request for the
mandatory payment to the Foreign Service Retirement and
Disability Fund.
Operating Expenses of the Agency for International Development
Fiscal year 2001 level................................ $520,000,000
Emergency funding................................. 13,000,000
Fiscal year 2002 request.............................. 549,000,000
Committee recommendation.............................. 549,000,000
The Committee has recommended funding for Agency for
International Development operating expenses at a level of
$549,000,000 which is the same as the Administration's request.
The Committee has once again included a provision requiring AID
to notify the Committee in advance of opening any new mission
overseas and of any capital construction of missions or
purchase or long-term lease of offices.
Use of Personal Service Contractors
The Committee notes the continued use by AID of personal
service contractors (PSCs). The Committee has traditionally
supported this method of employing qualified individuals for
short and medium term program implementation. However, the
Committee notes the trend toward employing PSCs over a period
of many years at the Agency, who carry out functions similar to
career personnel of the Civil Service and the Foreign Service,
but who lack comparable health, retirement, and other benefits.
The Committee requests AID report in narrative form not later
than March 1, 2002, on the total number of PSCs employed by the
Agency, the average length of employment, the typical benefits
provided to PSCs (compared to those provided to career Civil
and Foreign Service employees), and the justification for the
disparity in benefits.
fairness in contracting
The Committee recognizes senior management now shares its
concerns about AID's existing procedures regarding minimum
awards under multiple award contracts. Current management
practices on certain existing multiple award contracts do not
yet allow small businesses to fairly compete for work.
To reform this process AID management must address two key
issues. First, organizations bidding for these contracts must
be assured of receiving awards during the life of the contract
valued at substantially more than the cost of preparing and
submitting the original bid. While larger organizations and
traditional AID contractors may be better able to absorb the
upfront costs associated with the bidding process, small
businesses--especially first-time bidders--find it difficult.
Second, after being selected to participate in a multiple
award contract, all businesses must be given the opportunity to
compete for individual task orders. While discretion must be
allowed for AID Cognizant Technical Officers (CTOs) to make
award decisions, AID management has overall responsibility to
ensure that each organization participating in a multiple award
contract has received sufficient task orders so that it can be
evaluated on its performance and considered for future work.
Not later than October 5, 2002, AID is directed to report
in writing to the Committee on its efforts to modify its
existing procedures regarding multiple award contracts.
Voluntary Separation Incentives
The Committee has included bill language providing for the
payment of voluntary separation incentives to AID employees for
the purpose of eliminating positions and functions at AID. This
provision further amends the fiscal year 2000 authority. The
Agency is directed to consult with the Committee prior to
announcing to AID employees the positions eligible for the
separation incentives. The Committee expects this authority to
be utilized to reduce employment levels in Washington, D.C.,
not at AID's overseas missions.
Committee oversight challenges
The Committee remains concerned about continued and
significant weaknesses in AID's ability to provide reliable
information to Congress regarding the exact use of funds under
Agency control. Many of these deficiencies are not new as the
Committee has highlighted these in past years. While progress
has been made in certain areas, widespread deficiencies
continue to exist in the majority of AID's financial accounting
and management systems.
The Committee will continue to work with senior AID
officials to improve management and financial systems to ensure
they meet the needs of both Congress and the Agency. The
Committee expects AID management to implement the
recommendations of the Inspector General in this regard and to
be regularly consulted about Agency efforts to meet these
requirements.
The Committee directs AID to continue to report on a
quarterly basis on the status of its computer systems,
including the cumulative costs associated with design and
implementation of its computer systems. Any costs for computer
systems above those originally justified for fiscal year 2002
shall be subject to prior review by the Committees on
Appropriations. In addition, the Committee directs that the
Agency's fiscal year 2003 budget justification will clearly
identify the amounts requested for AID computer operations.
aid budget submission
The Committee notes that the AID budget justification still
falls short in providing the Congress with the minimum
information it requires to carry out its legislative and
oversight responsibilities, and has caused an undue reporting
burden on the Agency. It is essential that the Committee have
at its disposal a concise budget justification document that
presents an overall presentation of the Agency's programs and
activities.
Beyond the unacceptable practice of aggregating most
programs, projects, and activities under Agency objectives, the
budget justification continues to largely exclude overview
budget narratives and tables on areas such as infectious
diseases, microcredit, biodiversity, population, economic
growth, energy, democracy, or agriculture. The Committee
strongly recommends that the AID budget justification be
coordinated with a new financial management system to produce
annual budget justifications that fully inform the Committee
with regard to projects, initiatives, and other traditional
areas of congressional and executive branch interest.
AID physical security
The Committee remains committed to assisting AID in
improving its physical security needs overseas and in
Washington. The Committee directs the Administrator of AID to
submit a written report detailing the agency's long-term local
and overseas physical security requirements and the costs
associated with these security needs, including the number of
engineers and other technically qualified AID employees
assigned to the security mission. The report also shall include
information regarding the Agency's activities during the
current fiscal year to work with other federal agencies,
including the Department of State and the Office of Management
and Budget, to address physical security issues.
Operating Expenses of the Agency for International Development, Office
of the Inspector General
Fiscal year 2001 level................................ $27,000,000
Fiscal year 2002 request.............................. 32,000,000
Committee recommendation.............................. 30,000,000
The Committee has recommended $30,000,000 for the Office of
the Inspector General of AID for fiscal year 2002, $2,000,000
below the budget request and $3,000,000 above the fiscal year
2001 level. The Committee commends the Inspector General for
seeking to consult with the Committee no less than four times
per year on its activities with regard to the Government
Performance and Results Act.
Other Bilateral Economic Assistance
Economic Support Fund
Fiscal year 2001 level................................ $2,295,000,000
Fiscal year 2002 request.............................. 2,249,000,000
Committee recommendation.............................. 2,199,000,000
The Committee recommends a total of $2,199,000,000 for the
Economic Support Fund, an amount that is $50,000,000 below the
request and $96,000,000 below the amount enacted for fiscal
year 2001.
The Committee recommendation assumes a reduction of
$160,000,000 in economic support for the Camp David countries.
In addition, it reflects a reduction of $25,000,000 associated
with the decision to retain a separate appropriations account
for the International Fund for Ireland. The Administration's
budget request included $19,600,000 for Ireland within the
Economic Support Fund.
As requested by the President, the Committee is
recommending the continuation of language similar to that
contained in the fiscal year 2001 appropriations act that
authorizes assistance to the National Democratic Alliance of
Sudan for certain specified activities.
israel
The Committee is continuing the initiative begun three
years ago for a phased reduction in economic assistance for
Israel that will result in the eventual elimination of
``Economic Support Fund'' assistance. This proposal was
originally made by the Government of Israel in response to new
economic realities in the Middle East.
The Committee is also convinced that the emerging security
threats in the Middle East are significant and warrant
increasing military assistance to Israel by $60,000,000 in
fiscal year 2002. However, with respect to this recommended
increase in military assistance, the Committee must be very
clear that it cannot commit future Congresses to an additional
appropriation of funds. Therefore, future increases in military
assistance will require the annual review of the Congress and
will necessarily be based upon an assessment of the security
situation at the time.
The Committee therefore recommends not less than
$720,000,000 in economic support shall be provided for Israel,
which is $120,000,000 less than the fiscal year 2001 level and
the same as the President's budget request. The Committee also
requires in bill language that these funds be provided to
Israel as a cash grant and that funds be disbursed within 30
days of enactment or by October 31, 2001, whichever is later.
The Committee has retained an overall limit on Middle East
spending (section 558) at a level of $5,141,150,000. The
reduction of $100,000,000 from the fiscal year 2001 ceiling
represents the net result of a decrease of $160,000,000 in
economic support for the Camp David countries and an increase
of $60,000,000 in military assistance for Israel. The Committee
believes this will provide the Administration with increased
flexibility in the allocation of funds in the foreign
operations budget for priority activities in other areas of the
world.
egypt
As part of the Committee's ongoing review of Middle East
aid levels, and as a result of budget constraints affecting the
international affairs budget, the Committee has engaged in
extensive discussions with the Government of Egypt and the
Administration regarding appropriate future aid levels for
Egypt. As a key friend and ally in the region, Egypt's role in
the Middle East is critical. It is the Committee's view
therefore that changes in aid to Egypt must be implemented in
close consultation with the Government of Egypt and in a manner
which does not inadvertently undermine the guiding principles
of the Camp David Accords.
The Committee therefore includes not less than $655,000,000
in economic support be provided for Egypt on a grant basis,
which is $40,000,000 less than the fiscal year 2001 level and
the same as the President's budget request. A cash transfer may
be provided with the understanding that Egypt will continue to
implement significant economic reforms.
The Committee believes that encouraging stability and
prosperity in Egypt is in the best national security interests
of the United States. U.S. assistance to Egypt should serve the
goal of regional stability, economic development and
liberalization, and democratic reform. The Committee is
therefore deeply concerned about the recent prosecution and
conviction of twenty-eight people affiliated with the Ibn
Khaldoun Center for Development Studies in Egypt, including the
Center's director, Saad Eddin Ibrahim, who holds dual U.S./
Egyptian citizenship. The Committee is also troubled by the
fact that the case involving the Ibn Khaldoun Center was tried
by a special security court, despite the fact that the Center
was registered as a civil company. The Committee directs the
State Department to report to the relevant Committees, no later
than 120 days after the enactment of this Act, regarding the
U.S. efforts to monitor developments in the case.
The Committee also notes with concern that the Government
of Egypt has declined to reinstate its ambassador to Israel. As
in previous years, the Committee has included bill language
encouraging the establishment of diplomatic relations between
Israel and other countries in the region, and views the
withdrawal of Egypt's ambassador as an unfortunate setback for
efforts to establish lasting peace and stability in the region.
The Committee urges the Secretary of State to make
reinstatement of the ambassador to Israel a high priority in
contacts with his Egyptian counterpart.
camp david accords
The Committee emphasizes once again that the recommended
levels of assistance for Israel and Egypt are based in great
measure upon their continued participation in the Camp David
Accords and the Egyptian-Israeli peace process.
non-military exports
The Committee strongly urges the President to ensure, in
providing cash transfer assistance to Egypt and Israel, that
the level of such assistance does not cause an adverse impact
on the total level of non-military exports from the United
States to each such country.
economic boycott of israel
The Committee has once again included language in the bill
addressing the Arab League boycott of Israel under section 535
of this Act. This language includes modifications made last
year to urge that Arab League members normalize relations with
Israel.
jordan
The Committee expresses its continued strong support for
and appreciation of Jordan's constructive and critical role in
the region and encourages the Administration, in close
consultation and cooperation with the Congress, to continue its
efforts to assist Jordan in both the economic and security
areas. The Committee therefore recommends $150,000,000 in
economic assistance for Jordan, the same as the President's
budget request.
The Committee also encourages Jordan to continue its
ongoing economic reform program, which the Committee strongly
supports.
middle east desertification
The Committee recommends that the Agency for International
Development and the Department of State, through regional and
bilateral programs, increase its emphasis on the issues of
desertification and water shortages in the Middle East and
Mediterranean region. The Committee urges the Department to
consider an increase in the funding allocated to the Middle
East Regional Cooperation (MERC) program specifically to
address these issues. The success of peace negotiations in the
Middle East will depend upon the ability of all parties to
agree on an equitable allocation of the region's scarce water
resources. Much of these resources are in the form of
groundwater aquifers that are shared by at least two countries.
In that regard, the Committee is aware of the proposal of the
Blaustein Institute for Desert Research in Israel to
investigate the flow and transport of pollutants in groundwater
in the region, and recommends that the Department of State and
AID actively consider up to $1,000,000 for this organization.
The Committee also recognizes the efforts of the Galilee
Society in creating the Appropriate Technology Consortium with
support from the MERC program, and notes with interest the
Society's recent proposal to launch a cooperative project to
find safe and suitable uses for organic waste emanating from
olive oil presses.
The Committee also strongly supports the efforts of the
International Arid Lands Consortium and its partner, the Center
for Middle East Peace, in addressing the critical issues of
water and energy in the Middle East and directs AID to provide
up to $2,500,000 to the International Arid Lands Consortium for
this work. These funds should be allocated from bilateral,
centrally managed, or regional programs either in this account
or in other accounts funded in this act.
conflict resolution
The Committee recognizes the importance of youth training
in conflict resolution as a tool for creating a climate of
peace in regions of conflict. Organizations such as Interns for
Peace can play an important role in this regard, and the
Committee urges support for its programs. The Committee also
commends Seeds of Peace for its commitment to helping future
leaders of the Middle East and other regions (such as Cyprus,
the Balkans, and South Asia) to overcome prejudice, fear, and
other obstacles to peace, and urges AID and the Department of
State to provide $1,000,000 in fiscal year 2002 to support the
important work of this organization.
The Committee recognizes that through the Economic Support
Fund the United States has funds available that focus on
environmental security alerts, threat assessments, and
preventive solutions. In that regard, the Administration has an
excellent opportunity to access the information and expertise
of the Foundation for Security and Sustainability and its
academic and industry partners. The Foundation's data and
assessments, and collaboration with interdisciplinary experts
and the academic community, reduce the burden on federal
agencies and provide invaluable insight to United States policy
makers in evaluating the security implications of emerging
environmental issues and developing strategies for engaging on
these issues in time to make a difference. The Committee
supports the efforts of the Foundation for Security and
Sustainability and strongly encourages the Agency for
International Development and the Department of State to
provide funds to support its mission.
In addition, the International Crisis Group (ICG) provides
high-quality analysis and policy recommendations to prevent or
reduce the level of deadly violence resulting from complex
crises. ICG's analysts worldwide have been well positioned to
identify potential problems, produce objective assessments, and
support policy responses. The Committee urges the Department of
State and the Agency for International Development to provide
funding for the ICG to continue its research in areas of U.S.
foreign policy interest, such as Colombia, Sierra Leone, the
Democratic Republic of Congo, Indonesia, and the Balkans.
The Committee recognizes that ethnic and sectarian tensions
underlie many of the world's most intractable conflicts. NGOs
in conflict regions can play an important role in resolving
tensions and building peaceful societies. The Committee
recognizes the important work of the School for International
Training's Conflict Transformation Across Cultures Program
(CONTACT), an international professional development program
for NGO personnel. The CONTACT program has trained NGO
professionals from the former Yugoslavia, Sri Lanka, Nepal,
Indonesia, Peru, Rwanda, Sierra Leone, the Middle East, and
other regions in the core skills and practical tools for
responding to conflict in their communities, and has developed
a global network of dedicated professionals in the field of
conflict resolution. The Committee recommends that USAID make
available up to $1,000,000 for the CONTACT program.
lebanon funding
The Committee believes support for the people of Lebanon
continues to be in the United States national interest. The
Committee supports at least $35,000,000 for Lebanon for fiscal
year 2002. In that regard, the Committee has retained bill
language similar to that contained in the fiscal year 2001
appropriations act that directs that not less than $35,000,000
should be made available for Lebanon. Working through such
organizations as the Young Men's Christian Association (YMCA),
the Catholic Near East Welfare Association, the Cooperative
Housing Foundation, Mercy Corps, Save the Children Federation,
State University of New York, and the World Rehabilitation
Fund, the Agency for International Development is providing the
basis for a democratic social and economic infrastructure that
does not rely on other organizations operating in that country.
In particular, the Committee commends the Rural Community
Development Cluster (RCDC) program, which is helping to
revitalize and expand economic opportunities in some of the
most destitute and poverty-stricken areas of Lebanon.
The Committee is also aware of the key role the Lebanese
American University, American University of Beirut, and
International College play training leaders in the region and
expect that not less than the fiscal year 2001 allocation will
be provided for these important institutions.
The Committee welcomes the withdrawal of Syrian troops from
the region surrounding Beirut, but recognizes that Lebanon can
never achieve full independence until all foreign security and
military forces are withdrawn, and control is reasserted by the
national government throughout all of Lebanon. The Committee
calls upon Lebanon and Syria to adopt a timetable for the
complete withdrawal of all Syrian forces from Lebanon.
The Committee also urges the government of Lebanon to
assist international humanitarian organizations in determining
the whereabouts and condition of three Israeli soldiers that
were seized near the southern border last year. The Committee
encourages the Secretary of State to make this issue a high
priority of U.S. diplomatic activity in the region.
ireland
The Committee strongly supports continued funding to
implement the Irish Peace Process Cultural and Training Program
Act of 1998 and has provided the budget request of $5,000,000
for this purpose. This Congressional initiative brings
individuals from Northern Ireland and designated disadvantaged
areas to the United States for job training and related
activities.
indonesia
The Committee notes the difficult path encountered by new
democratic institutions at the central and local levels
throughout Indonesia. The Agency for International Development
is encouraged to provide adequate humanitarian assistance to
internally displaced persons, especially in East Indonesia. The
Committee expects the Departments of State and the Treasury and
AID to consult with it in advance of any significant change in
any United States or international financial institution
program of development, financial, or humanitarian assistance
in Indonesia. It also directs the Export-Import Bank and the
Overseas Private Investment Corporation to promptly notify the
Committee in the event that any claim is anticipated or made on
behalf of a loan or guarantee involving Indonesia.
east timor
The Committee recommends that $25,000,000 from the Economic
Support Fund be made available as requested to support income
producing projects and other reconstruction activities in East
Timor.
mongolia
The Committee notes the difficult path encountered by new
democratic institutions in Mongolia. The Committee has provided
the full request of $12,000,000 for governance and other
development assistance requested by the Department of State. In
addition, the Agency for International Development is
encouraged to provide adequate humanitarian and rehabilitation
assistance to Mongolia, especially rural areas severely
affected by a recent series of natural disasters.
china
The Committee continues to support democracy programs in
China, and supports the President's request for rule of law
activities. In that regard, the Committee supports the
provision of $1,000,000 for democracy activities for China
through grants administered by the National Endowment for
Democracy (NED). Such funding should be provided in addition to
the $1,000,000 specified for such activities in the fiscal
years 2000 and 2001 appropriations acts for the Economic
Support Fund. The subgrants that would be awarded under this
grant would be similar in nature to the existing portfolio of
NED-supported programs based outside China. The subgrants could
include human rights documentation and advocacy in the
international arena; dissemination of Chinese-language human
rights and democracy education materials among audiences inside
and outside China; independent media support; independent
research on China's struggle for democracy; publication of
periodicals which provide an open forum for discussion and
commentary on social, cultural, economic and political issues;
and resource centers to provide access to important information
necessary for both Chinese and international observers and
policymakers to understand the situation in China.
tibet
The Committee recommends that $250,000 be made available
through a nongovernmental organization, such as the National
Endowment for Democracy, for the purpose of providing training
and education of Tibetans in democracy activities, and
monitoring the human rights situation in Tibet. In addition,
language has been included in section 526 to allow for a
continuation in funding for activities which preserve cultural
traditions and promote sustainable development and
environmental conservation in Tibetan communities. The
Committee is aware of the valuable assistance the Bridge Fund
has provided to promote Tibetan-owned and operated businesses
and educational, cultural, and natural resource conservation
projects in Tibet, and urges that funds be provided for these
activities.
sri lanka
The Committee encourages the Agency for International
Development to maintain an office and presence in Sri Lanka. In
addition, it is encouraged to provide additional resources for
programs promoting rule of law, anti-corruption activities, and
good governance. Recent progress toward peace talks and a
settlement of the long civil war in Sri Lanka is encouraging,
and the United States should continue to lend its support
toward such efforts.
cyprus
The Committee strongly supports the budget request of
$15,000,000 for educational and other bicommunal projects in
Cyprus, and has included language similar to that included in
the fiscal year 2001 act that provides that not less than
$15,000,000 should be made available for these purposes. These
funds provide a basis for mutual cooperation and preparation
for the two communities of Cyprus to live together harmoniously
by increasing inter-communal contacts.
latin america and the caribbean
The Committee strongly supports the increases in the
President's request for Latin America. It remains the
Committee's strong belief that given the importance of the
region and the long history of United States support, it is
essential that aid levels be increased. In that regard, the
Committee fully supports the budget request of at least
$5,000,000 for the Cuba democracy program and its goal of
promoting a peaceful transition to democracy in that country.
When allocating these funds the Committee expects AID to
consider proposals at or through institutions of higher
education in the United States and expects that competitive
procedures will be followed with regard to such proposals.
The Committee continues to be concerned about the
resolution of the cases involving the terrorist bombings of the
Israeli Embassy and the AMIA Jewish Community Center in Buenos
Aires, Argentina. The Committee urges the Secretary of State to
continue to work with the Government of Argentina to ensure
that progress is made in these cases, and to offer technical
law enforcement assistance where appropriate to bring to
justice the perpetrators of these terrorist acts.
The Committee is concerned about potential loss of human
life and economic infrastructure as a result of future
earthquakes in Latin America. In significant respects, such
damage may be avoided if proper planning and construction
occurs. There is a need in El Salvador, Ecuador, and other
Latin American countries for updated construction codes. If
proper codes are followed, buildings will be safer, and
therefore, the need for United States disaster assistance in
the wake of disasters will be less. The Committee urges the
Office of Foreign Disaster Assistance at the Agency for
International Development to recognize and evaluate
opportunities to translate U.S. building codes from English to
Spanish and for training in Ecuador and El Salvador.
dollarization in central and south america
The Committee is concerned that the growth in
``dollarization'' throughout the world, especially in Central
and South America, will result in an increase in the overseas
based production and distribution of counterfeit U.S. currency.
Dollarization in countries that lack law enforcement expertise
or meaningful criminal penalties will provide counterfeiters a
fertile environment to use that economy as a place to launder
counterfeit U.S. dollars.
In order to prevent the proliferation of counterfeiting as
a result of increased dollarization, the Committee directs the
Secretary of State, with the Secretary of Treasury, to jointly
develop a strategy to mitigate counterfeiting of U.S. dollars
in dollarized regions and report its findings to the Committees
on Appropriations no later than September 30, 2002.
human rights and democracy fund
As in fiscal year 2001, the Committee expects that, of the
funds allocated to the Human Rights and Democracy Fund,
$1,000,000 should be provided to support the Reagan/Fascell
Democracy Fellows Program of the National Endowment for
Democracy to enable activists, scholars, journalists, and
practitioners from around the world to help make contributions
to the strengthening of democracy in their respective
countries. This program was authorized in section 104(a)(2)(B)
of H.R. 3427 as enacted into law as part of Public Law 106-113.
The Committee continues to support assistance to South
Korean nongovernmental organizations involved in activities to
promote democratization efforts in North Korea, and is
disappointed that funds provided in fiscal year 2001 have not
been obligated. The Committee strongly urges that an additional
$250,000 be made available from funds appropriated in fiscal
year 2002. Such funds should be programmed through the National
Endowment for Democracy.
tuna treaty
The Treaty on Fisheries between the United States and the
governments of certain Pacific Island states, popularly known
as the South Pacific Regional Fisheries Treaty, requires that
$14,000,000 in economic assistance be provided annually to the
South Pacific states. Therefore, the Committee recommends that
the treaty obligation be met through the payment of the full
$14,000,000 in fiscal year 2002, as requested by the President.
availability of funds
The Committee has continued language that funds in this
account are to remain available for obligation for two years.
International Fund for Ireland
Fiscal year 2001 level................................ $25,000,000
Fiscal year 2002 request.............................. (19,600,000)
Committee recommendation.............................. 25,000,000
The Committee recommends $25,000,000 for the International
Fund for Ireland in support of the Anglo-Irish Accord. Funding
for this activity is requested through the Economic Support
Fund, but the Committee recommendation would continue a
separate account for assistance to Ireland. The amount
represents an increase of $5,400,000 over the President's
budget request.
The International Fund for Ireland plays an important role
in promoting peace and stability in Northern Ireland. The
Committee is aware of a proposal by the University of Ulster
Springvale campus to work with the University of Notre Dame to
assess the impact of the new campus on the West Belfast
community. The Committee believes the Fund is the appropriate
and authorized vehicle for providing assistance to Ireland, and
therefore requests the Fund to favorably review this request,
and to provide funding as appropriate.
The Committee strongly urges the International Fund for
Ireland to take every step possible to ensure that all
recipients of Fund support are promoting equality of
opportunity and non-discrimination in employment. The Committee
further urges the Fund to focus on those projects that hold the
greatest potential for job creation and equal opportunity for
the Irish people, regardless of class, creed, gender, or
ethnicity.
Assistance for Eastern Europe and the Baltic States
Fiscal year 2001 level................................ $600,000,000
Emergency funding..................................... 75,825,000
Fiscal year 2002 request.............................. 605,000,000
Committee recommendation.............................. 600,000,000
The Committee recommends $600,000,000 for Assistance for
Eastern Europe and the Baltic States, an amount that is the
same as the amount provided for fiscal year 2001 (excluding
emergency funds) but $5,000,000 below the budget request. If
emergency supplemental funds are included, the recommendation
is $75,825,000 below the level enacted for fiscal year 2001.
The Committee intends that funding for democracy programs
though the National Endowment for Democracy continue at least
at the fiscal year 2001 level, and be provided as a transfer of
funds pursuant to section 632(a) of the Foreign Assistance Act.
burden sharing for kosovo
The Committee remains concerned about the level and pace of
European contributions to the reconstruction and rebuilding of
Kosovo. However, the Committee is aware it is unlikely a formal
donor's conference will be held for Kovoso for fiscal year
2002. In addition, the funding allocation for assistance for
Kosovo would decline from $150,000,000 in fiscal year 2001 to
$120,000,000 in fiscal year 2002. Therefore language requiring
that the United States not provide more than 15 percent of the
resources pledged for Kosovo has been modified to set this
limitation as a goal rather than a funding ceiling. In
addition, bill language is continued from the fiscal year 2001
appropriations act that would prohibit funding for large scale
physical infrastructure reconstruction.
bosnia and herzegovina
The Committee has recommended the same bill language as in
the fiscal year 2001 Act that requires the written approval of
the Administrator of AID for loans and projects under the
Economic Reconstruction Program; authorizes the use of local
currency funds generated by the Bosnia assistance program for
programs throughout the region; and authorizes the President to
withhold funds for economic revitalization for Bosnia if he
determines that Bosnia is not in compliance with the Dayton
Accord regarding the presence of foreign forces and has not
terminated intelligence cooperation with Iranian officials. All
funds are subject to the provisions of section 529 of this Act.
brcko district of bosnia and herzegovina
The Committee believes that the terms and conditions
specified in the Final Award of the Arbitral Tribunal
overseeing the Brcko boundary dispute constitutes a package of
innovative reforms that hold significant promise for rebuilding
vital civil institutions. In particular, the Committee believes
that the work of the Law Revision Commission to modify existing
laws to produce a uniform and fair system of laws throughout
the Brcko District should be seen as a model for making similar
reforms in the broader region. The Committee believes the
Secretary should use his offices to highlight the institution-
building mechanisms developed by the Brcko Tribunal and urge
that this be used as a model for making needed legal, judicial
and penal, law enforcement, customs service, taxation, and
financial management reforms in the Federation of Bosnia and
Herzegovina and the Republika Srpska.
montenegro
The Committee strongly supports assistance for the Republic
of Montenegro, and urges the Administration to make every
effort to assist the Government of the Republic. The Committee
is disappointed that the Administration did not request a
separate line item for Montenegro. Therefore the Committee
directs that $60,000,000 be made available for Montenegro, and
that this sum be identified in the report required by section
653(a) of the Foreign Assistance Act as a separate line item
with a separate allocation. The Committee notes the strong
support given by the Republic to the foreign policy of the
United States during the latter years of the Milosovic regime
in Serbia.
The baltic states
The Committee has not included bill language that
recommends that $5,000,000 shall be provided for assistance for
the Baltic States based on assurances from the Department of
State that such an allocation will be made for fiscal year
2002. The Committee strongly supports continued assistance to
the Baltic States at least at the $5,000,000 level. Although
these countries no longer have AID missions, they are still
emerging from decades of dominance by the Soviet Union and
continue to need United States technical assistance in order to
emerge into the community of Western nations.
The Committee intends that these resources be used in the
Baltics for the same purposes as were the funds that were
provided in fiscal year 2001, including regional environment
programs, health programs, anticrime and anticorruption
programs, and rule of law programs.
The Committee requests that the Department of State and the
Agency for International Development consult with the
Committees on Appropriations by February 1, 2002, on plans to
continue these programs in the Baltics. The Committee does not
believe the maintenance of such programs will require AID to
open missions in any of these countries. Such programs can and
should be managed on a regional basis.
treatment of orphans
The Committee continues to be very concerned by the
condition of orphaned children in the Federation of Bosnia and
Herzegovina. While Bosnian families have been reluctant to
adopt many of these children, American families have shown an
interest in adopting Bosnian children. Unfortunately,
legislative barriers within the Federation have prevented
foreign adoptions, and the Committee is very disturbed that
little action has been taken to modify these provisions. The
Committee strongly encourages the Government of the Federation
of Bosnia and Herzegovina to enact legislation that will
expedite the adoption of Bosnia children by foreign families,
and directs the Secretary of State to report not later than
December 1, 2002, on the steps that have been taken both by
Bosnia and by the Department to encourage passage of such
legislation.
legal initiatives and the rule of law
The Committee encourages the Agency for International
Development to continue to provide financial support for the
Central and Eastern European Law Initiative (CEELI), a project
of the American Bar Association. CEELI has received grants to
help Central and East Europe and the NIS create new legal
frameworks based on the rule of law rather than through party
doctrine or caprice.
Through a variety of program components, CEELI is making
available legal expertise to assist countries that are in the
process of modifying or restructuring their laws or legal
systems. CEELI emphasizes long-term engagement country-by-
country and supports projects that facilitate extensive
consultations with policy-makers, legal scholars, judges, and
attorneys. CEELI has focused work in several critical priority
areas: constitutional reform; judicial restructuring; bar
reform; commercial law; criminal law and procedure; and legal
education reform, and has helped develop and/or
institutionalize self-sustaining indigenous nongovernmental
organizations (NGOs). The Committee encourages support for this
type of private sector involvement.
training and exchanges in the former soviet union and central europe
The Committee continues to support training, exchanges, and
partnerships between the United States and the nations of
Eurasia, Central Europe, and the southern tier of Europe. These
programs are in the interest of the United States and important
to sustaining democracies. The Committee recommends the
Administration provide funding for the Russian, Eurasian, and
East European Research and Training Program (Title VIII) at the
fiscal year 2000 level.
The Committee recommends the East Central European
Scholarship Program (ECESP) be continued at least at the same
level as fiscal year 2001 to allow the program to continue to
address the needs of the countries in the southern tier of
Central Europe.
Assistance for the Independent States of the Former Soviet Union
Fiscal year 2001 level................................ $810,000,000
Fiscal year 2002 request.............................. 808,000,000
Committee recommendation.............................. 768,000,000
The Committee recommends $768,000,000 for Ukraine, the
Southern Caucasus states, Russia, and the Central Asian
republics of the former Soviet Union. This is $40,000,000 less
than the request and $42,000,000 less than the enacted fiscal
year 2001 level.
The Committee has included in subsection (a) prior year
language providing the funds under this heading
``notwithstanding any other provision of law'' and applying the
provisions of section 498B(j) of the Foreign Assistance Act. A
general provision (section 517) also includes long-standing
language on human rights, and non-use of funds for enhancing
military capacities, and providing all funds subject to
separate notification.
child survival and health
The Committee continues to be concerned about the low
priority assigned to declining maternal and environmental
health conditions and the increasing incidence of TB/HIV/AIDS
in Russia, Ukraine, and the Central Asian Republics. The
positive results achieved with the small amounts already spent
for such programs in recent years have been dramatic. The
health and child survival sector can effectively absorb
increased resources, with an immediate and personal impact on
the demographically-stressed citizens of these nations. In
order to demonstrate its support for these high priority
activities that directly affect the citizens of these
countries, the Committee has included bill language allocating
not less than $45,000,000 for them.
The Committee is aware of and commends the Birth Defects
Monitoring Program recently instituted in Ukraine to detect the
incidence of birth defects related to the Chernobyl accident.
The Committee recommends that not less than $1,000,000 be
provided for this purpose and a proposed program to fortify
flour with folic acid to reduce the occurrence of spina bifida
in Ukraine in fiscal year 2002. The Committee also commends AID
for its efforts to prevent the trafficking of young women from
the region and expects successful programs to be expanded. The
Primary Health Care Initiative of the World Council of
Hellenes, has come to the attention of the Committee. Funded by
the Coordinator's Office of Humanitarian Assistance in fiscal
years 2000 and 2001, this project merits consideration, based
on its success, for additional funding in 2002.
``The Committee recognizes the work of the Eurasian Medical
Education Program of the American College of Physicians in
continuing medical education of Russian physicians in the
treatment of tuberculosis, cardiovascular disease, and
diabetes. This exchange program has given volunteer American
physicians the opportunity to share experiences and knowledge
with their Russian colleagues, greatly benefiting the people of
the Russian Federation. The Committee urges continued AID
support for this program.
International and Community Partnerships in Eurasia
The Committee commends the American International Health
Alliance (AIHA) and its partners in the new community-based
primary health care partnership program in the former Soviet
Union and Eastern Europe. This innovative program is actively
improving local health systems in the former Soviet bloc that
have deteriorated over the past decade, especially as they
affect services to women and children.
Examples of successful partnerships between the Volgograd
State Medical Academy in Russia and the University of Arkansas
for Medical Sciences and between Atlanta and Tiblisi, Georgia,
have been brought to the Committee's attention. This program
has been mutually beneficial to both Georgias, Russia and the
United States as young medical professionals from Russia
receive advanced medical training delivered in a rural setting.
The Committee strongly recommends that AID extend and expand
this program, matched by non-Federal contributions.
An example of a non-health partnership is the Arizona-
Kazakhstan Partnership Foundation, which began as a Tuscon-
Almaty sister city relationship in 1989 and now includes as
many as five sub-partnerships, ranging from the Tuscon Chamber
of Commerce to the League of Women Voters and United Way.
Identified by AID as one of its key partnerships, the Committee
supports the continuation, and, if feasible, the expansion of
this and similar regional programs.
russia-iran
The Committee again recommends language dealing with
Russian nuclear and ballistic missile cooperation with Iran.
The language is identical with that contained in existing law.
The Committee remains extremely disturbed by reports, which
indicate that Russian entities are extensively engaged with
Iran in cooperative projects that significantly enhance Iran's
ballistic missile capabilities. The ballistic missile
cooperation, combined with Russian nuclear cooperation with
Iran, represent a significant step in Iran's efforts to obtain
a comprehensive, highly sophisticated weapons of mass
destruction capability. The Committee reiterates the language
from the fiscal year 2000 Statement of the Managers ``that
assistance to combat infectious diseases, child survival and
non-proliferation activities, support for regional and
municipal governments, and partnerships between United States
hospitals, universities, judicial training institutions and
environmental organizations and counterparts in Russia should
not be affected by this section.''
Southern Caucasus region: Armenia, Azerbaijan, and Georgia victims of
the nagorno-karabagh conflict
Again this year, the Committee designates as a high
priority U.S. assistance to the victims of the Nagorno-Karabagh
conflict, both those residing in and displaced from Nagorno-
Karabagh. With regard to the former, the Committee directs,
without further delay, that the remainder of the $20,000,000 in
humanitarian assistance initially provided in the fiscal year
1998 Act be immediately released for obligation.
support of peaceful resolution of South Caucasus conflicts
The Committee reiterates themes included in its last four
reports:
The extent and timing of United States and multilateral
assistance, other than humanitarian assistance, to the
government of any country in the Caucasus region should be
proportional to its willingness to cooperate with the Minsk
Group and other efforts to resolve regional conflicts.
In furtherance of a peaceful resolution to the Nagorno-
Karabagh conflict, and in support of the confidence building
measures discussed at NATO and OSCE summits, the Committee
strongly supports confidence-building measures among the
parties to the conflict. Such measures could include
strengthening compliance with the cease-fire, studying post-
conflict regional development such as water management,
transportation routes and infrastructure, establishing a youth
exchange program and other collaborative and humanitarian
initiatives to foster greater understanding among the parties
and reduce hostilities.
The Committee has included renewed authority for the
President to provide humanitarian assistance to the region,
notwithstanding the restrictions of Section 907 of the FREEDOM
Support Act. The bill language is unchanged from last year.
This exemption allows for direct assistance by American NGOs to
refugees and displaced persons throughout the region, including
those in Nagorno-Karabagh. The Committee understands that
humanitarian assistance may include a broad range of activities
and partnerships with United States hospitals and universities
in maternal and children's health, eldercare, basic education
and environmental health.
The Committee also reiterates the statement contained in
prior year reports on this bill that its actions regarding
Armenia and Azerbaijan are not meant to express a view on the
political status of Nagorno-Karabagh.
armenia
The Committee recommends that $82,500,000 be made available
from funding sources in this title for Armenia. This is
$12,500,000 above the request. The Committee is aware of the
work of the Armenian Technology Group in assisting the Armenian
private sector in a seed multiplication program. The Committee
continues to support the expansion of these efforts in
additional countries in the Central Asia region.
georgia
The Committee recommends that $82,500,000 be made available
from funding sources in this title for the Republic of Georgia.
This is $7,500,000 less than the request. The Committee intends
that a significant part of the assistance for Georgia continue
to be provided for technical security assistance for border and
export control.
ukraine
The Committee recommends that not more than $125,000,000 be
made available for Ukraine from this account. This
recommendation is based on the completion of a long term
parameter display systems project in nuclear safety, the
continuing setbacks to needed reform, and the unresolved deaths
of prominent dissidents and journalists in Ukraine. The
Committee again notes that one of the most important elements
of private sector development is agriculture and rural industry
based on agriculture. The Committee supports continuing efforts
to help emerging small, private farms and independent private
suppliers and marketing operations in the independent states.
As private sector development is expedited by the
introduction of community-owned telecommunications systems,
universal access to information gives small-scale producers
information about market conditions that allow their businesses
or farms to succeed. The Committee renews its advice that AID
emphasize community-based telecommunications projects in its
regional initiatives.
expanded threat reduction
The Committee includes $15,000,000 for the bilateral U.S.
Civilian Research and Development Foundation (CRDF) in this
account, and not less than the request of $15,000,000 for the
Georgia Border Security and Related Law Enforcement Assistance
Program.
The Committee recommends that of the amounts provided for
ETR activities, up to $2,000,000 be made available for
collaborative research grants for American and Russian scholars
concerning the enhancement of verification of arms control and
nonproliferation agreements, confidence-building measures to
enhance international security, and economic and political
studies of defense conversion.
enterprise funds
The Committee is concerned that the initial funding
allocations made to the U.S. Russia Investment Fund (TUSRIF)
and the Western NIS Enterprise Fund in fiscal year 2000 were
inadequate. The Committee urges the State Department and AID to
provide not less than an additional $40,000,000 to TUSRIF over
the fiscal years 2002 and 2003, as the Fund demonstrates its
ability to promote the development of a market economy in
Russia. The Committee commends the Fund's innovative housing
mortgage program. In return for a more rapid rate of Federal
investment in TUSRIF, the Committee expects it to work more
closely with United States companies and investors and with
businesses located in the vicinity of U.S. regional investment
cities.
The Committee welcomed the return of $40,000,000 to the
U.S. Treasury by the Fund's companion enterprise fund in
Poland, and anticipates the receipt of an additional
$40,000,000 in fiscal year 2001. The Committee expects that
more rapid capitalization of the U.S. Russian Investment Fund
may lead over time to a similar repatriation of foreign aid
funds to the U.S. Treasury.
violence against women
The Committee continues to be very concerned about the
incidence of violence against women in Russia, Ukraine, and
Central Asia and the indifference of many law enforcement
officials to such crimes. Funds should be made available to
improve the response of Russia's and Central Asia's law
enforcement and judicial system to women victims of violence.
Democracy Programs
Given the increasing repression of the fledgling
institutions of civil society and general reversal of progress
towards democracy in the Russian Federation and Ukraine,
$4,000,000 should be made available through the National
Endowment for Democracy and its subgrantees to assist
nongovernmental organizations (NGO's). Such funding should be
made available pursuant to section 632(a) of the Foreign
Assistance Act. Special emphasis should be given to programs
promoting human rights, freedom of information, market reform,
rule of law, political party development, freedom of
association and NGO development. Attention should be devoted to
programs outside of the capital cities and to cross-border
programs that promote the exchange of experience and
information among the countries of Central and Eastern Europe,
Russia and Ukraine.
religious freedom in russia
The Committee continues to be concerned about the dire
consequences to several religious groups resulting from
regional enforcement of the religious freedom statute in the
Russian Federation.
The recommended bill again includes language addressing
this matter that is identical with language in the prior years
Acts.
The Committee does not intend that the limitation on
assistance to the ``Government of the Russian Federation''
limit assistance for regional and municipal governments or
partnerships between United States hospitals and universities
and counterpart institutions in Russia.
Independent Agencies
Inter-American Foundation
Fiscal year 2001 level................................ ($12,000,000)
Fiscal year 2002 request.............................. (12,108,000)
Committee recommendation.............................. 12,000,000
The Committee recommends $12,000,000 for the Inter-American
Foundation, as a separate account, not provided through the
``Development Assistance'' account as in past years. The
Committee recommendation is the same as last year's level and
is $108,000 below the budget request. The Committee is
concerned about the results of the USAID Inspector General
audit (April 2, 2001) on the Inter-American Foundation's
financial statements, compliance, and internal controls for
fiscal year 2000. Specifically of concern to the Committee is
the inability of the IG to express an opinion on financial
statements because IAF's financial management systems could not
produce complete and reliable financial statements.
Additionally of concern are the three material internal control
weaknesses related to financial management systems and three
instances of material non-compliance with selected provisions
of applicable laws and regulations. The Committee urges the IAF
to implement the recommendations made by the IG audit and keep
the Committee updated on a quarterly basis.
African Development Foundation
Fiscal year 2001 level................................ ($16,000,000)
Fiscal year 2002 request.............................. (16,042,000)
Committee recommendation.............................. 16,042,000
The Committee recommends funding for the African
Development Foundation at a level of $16,042,000, provided as a
separate account, not through the ``Development Assistance''
account as in past years. This is an increase of $42,000 above
the fiscal year 2001 level and equal to the request.
Peace Corps
Fiscal year 2001 level................................ $265,000,000
Fiscal year 2002 request.............................. 275,000,000
Committee recommendation.............................. 275,000,000
The Committee recommends $275,000,000 for the Peace Corps,
an amount that is equivalent to the budget request and
$10,000,000 above the amount enacted for fiscal year 2001.
Prior year language addressing purchase of motor vehicles,
abortion, and availability of funds has been continued in the
bill. The Committee supports the work of the Peace Corps and of
its volunteers who currently work in 76 countries.
Department of State
International Narcotics Control and Law Enforcement
Fiscal year 2001 level................................ $325,000,000
Fiscal year 2002 request.............................. 217,000,000
Committee recommendation.............................. 217,000,000
The Committee recommends $217,000,000 for ``International
Narcotics Control and Law Enforcement''. This is equivalent to
the budget request and $108,000,000 less than the fiscal year
2001 level. The 2001 enacted level included $154,000,000 for
Andean nations, which is requested in the Andean Counterdrug
initiative account for fiscal year 2002. A limitation of
$16,660,000 is recommended for administrative expenses. The
Committee has included bill language requiring that all funds
in this account for anti-crime activities be notified in
advance to the Committees on Appropriations, including those
which make use of ``notwithstanding'' authority. The Committee
supports the use of up to $10,000,000 in funds for the Africa
Regional Anticrime Program.
The Committee continues to support a strong U.S.
counternarcotics assistance program in order to protect U.S.
communities from the ravages of drugs, and believes INL has
considerable resources, made available through annual and
supplemental appropriations, to meet these challenges. The
Committee is concerned about proposals by the Department of
State to use INL program funds for an increasing number of non-
program costs, therefore the Committee has recommended a
limitation on administrative expenses. The limitation is
equivalent to the non-Andean administrative expenses as
justified in the 2002 INL budget.
East Asia
The Committee is concerned with the increasing illegal drug
trafficking into the United States from East Asia, especially
in Vietnam, Cambodia and the Philippines. The Committee
continues to support International Narcotics Control programs
in East Asia designed to strengthen law enforcement
institutions so they can better deal with increases in drug
trafficking. Further, the Committee commends INL for its plans
to enhance its existing regional counter-drug cooperation
programs in this region.
SW Asia
Southwest Asia produces more opium than any other region in
the world. The Committee encourages INL to participate in a
joint U.S.-Pakistan initiative to curb cultivation and
trafficking in the Khyber Agency of the Northwest Frontier
Province.
drug certification
The Committee is concerned that the United States' annual
drug certification process fails to establish an effective and
accountable drug policy, while creating tensions with our
neighbor, Mexico. The Committee strongly supports change to the
present certification process. Priority should be given to
installing a sound accountability system where an obligation to
deterring drug trafficking is the ultimate goal. The Committee
asks the Secretary of State to work with the appropriate
committees of Congress to modify the certification process to
mirror the concerns made by the Committee.
Andean Counterdrug Initiative
Fiscal year 2001 level................................ ................
Fiscal year 2002 request.............................. $731,000,000
Committee recommendation.............................. 676,000,000
The Committee recommends $676,000,000 for the ``Andean
Counterdrug Initiative''. The Andean Counterdrug Initiative is
the first step in the Administration's multi-year counterdrug
assistance effort designed to sustain and expand programs
initially funded by Plan Colombia in the fiscal year 2000
emergency supplemental. The recommended level is $55,000,000
less than the request. The Committee recommends that the
reduction of $55,000,000 should be evenly distributed among all
programs, projects, and activities referred to in the
Administration's request for the Andean Counterdrug Initiative.
A limitation of $14,240,000 is recommended for administrative
expenses. The 2001 level enacted for ``International Narcotics
Control and Law Enforcement'' included $154,000,000 for Andean
nations. The fiscal year 2000 supplemental provided for
$1,018,500,000 in emergency funds to the Department of State
for Plan Colombia and other regional anti-narcotics activities.
The Committee notes that section 520 of the bill applies to
the use of Narcotics Control and Law Enforcement and Andean
Counterdrug Initiative funds for Colombia.
Andean Nations
The Committee calls on the Department of State to ensure
that all U.S. laws regarding human rights, including section
556 of this Act, are strictly applied in Colombia and each of
the Andean nations. In addition, the Committee requests that
the Secretary of State submit to the Appropriations Committees
a semi-annual report beginning not later than March 1, 2002,
with respect to the Andean Counterdrug Initiative. Each report
shall include an accounting of all aircraft, vehicles, boats
and lethal equipment (other than ammunition) transferred to the
militaries or police of any nation with funds made available
under this heading. Further, the report shall contain an
accounting of the number of U.S. Armed Forces personnel
deployed or assigned to duty in the Andean Region or other
nation at any time during the preceding 180 days with funds
made available under this heading, the length and purpose of
the deployment or assignment, and the associated costs and
force protection risks.
Colombia
The Committee believes that a negotiated settlement offers
the only viable resolution to the complex conflict in Colombia.
Until Colombia's warring parties reach a peace accord, efforts
to reduce coca and heroin-poppy production in that country will
continue to face enormous challenges. The Committee commends
the State Department for declarations of support for President
Pastrana's attempts to negotiate with guerrilla groups. Though
a final accord may be several years away, the Committee
strongly urges the Secretary of State to work with all parties
in the talks to encourage rapid progress toward a firm and
lasting peace.
Implementation of Plan Colombia
The Committee is concerned about the pace of implementation
of alternative development in the southern regions of Colombia.
While the Committee is pleased that the eradication and aerial
spraying is proceeding according to schedule, the Committee
believes that successful alternative development programs are
an essential component to Plan Colombia's success in Putamayo
and Caqueta. Eradication efforts can only be sustained in the
long-term if small farmers have an alternative to growing coca,
therefore the Committee urges AID and the State Department to
work with the Government of Colombia to resolve the logistical
problems preventing the delivery of non-cash assistance to the
communities that have signed pacts to voluntarily eradicate
their coca crops.
The Committee requests that the Secretary of State submit
to the Appropriations Committees a semi-annual report beginning
not later than March 1, 2002, with respect to the specific
efforts being made by AID, the State Department and the
Colombian Government to expedite the delivery of non-cash
assistance to communities in Colombia that have signed pacts to
voluntarily eradicate their coca crops. This report shall
include complete data on the percentage of available
alternative development funds that have been disbursed to
communities in Colombia that have signed pacts to voluntarily
eradicate their crops.
The Committee notes that the people of Colombia have shown
a long-term resilience and tolerance for difficult and violent
conditions, but the Committee is concerned about the urgency of
the current situation facing Colombia. In addition to
heightened violence, worsening economic conditions encourage
the narco-industry and deteriorating fiscal conditions could
threaten the Government of Colombia's commitment to Plan
Colombia. Stronger trade between Colombia and the United States
in licit industries is crucial to managing the vulnerabilities
of the Colombian economy, therefore the Committee urges the
President of the United States to seek renewal and expansion of
the Andean Trade Preferences Act (ATPA).
The Committee is concerned about the possible human and
environmental impact of materials used in aerial eradication of
coca and opium poppy in Colombia carried out under chapter 8 of
part I of the Foreign Assistance Act of 1961, as amended. The
Committee directs the Secretary of State to provide a report to
the Committees on Appropriations of the House of
Representatives and the Senate, on January 1, 2002, on the
human and environmental impact of all materials used in such
aerial coca and opium poppy eradication in Colombia. The report
shall include guidelines for the application of aerially
sprayed materials, scientific and other justifications for such
guidelines, as well as a description of a verification system
to ensure compliance with those guidelines. The Committee
further directs that the Secretary of State provide quarterly
reports, to be first issued January 1, 2002, concerning all
aerial eradication efforts of the previous quarter. Such
reports shall include a description of all areas sprayed,
materials and methods used, compliance with the spray
guidelines, and the human and environmental impacts of such
spraying.
Bolivia
The Committee takes special note of the progress that
Bolivia has made in the war against drugs. The enormous success
of the Bolivian Government's Dignity Plan has been due, in
large part, to the support of the U.S. Government. The
Committee urges the Administration to continue its strong
support of Bolivia's efforts when deciding its allocation of
aid.
European contributions
The Committee notes that demand for Colombian coca is
rising in Europe and approaching United States consumption
levels of approximately 300 tonnes a year. European nations and
the European Union have contributed very little to Plan
Colombia or an expanded Andean Initiative. The Committee urges
the Secretary of State to negotiate with our European allies in
order to persuade them to contribute additional funds to the
counter-narcotics efforts, alternative development, or judicial
reform in the Andean region.
Migration and Refugee Assistance
Fiscal year 2001 level................................ $700,000,000
Fiscal year 2002 request.............................. 715,000,000
Committee recommendation.............................. 715,000,000
The Committee recommends $715,000,000 for ``Migration and
Refugee Assistance'', an amount that is the same as the request
and is $15,000,000 more than the amount enacted for fiscal year
2001. A limitation of $15,000,000 is recommended for
administrative expenses.
Tibetan refugees
The Committee supports continued funding to assist Tibetan
refugees and directs $2,000,000 for this purpose. The Committee
requests that the Department of State coordinate with the
Agency for International Development in determining the funding
responsibility for long-term assistance for Tibetan refugees,
including assistance to refugees residing in India. In that
regard, the Committee would support the proposal to fund the
Tibetan Resettlement Project in Dehradum, consistent with
Tibetan cultural practices.
Resettlement in Israel
The Committee supports $60,000,000 for the resettlement of
Russian, Eastern European, Ethiopian, and other humanitarian
migrants in Israel. In light of the unsettled conditions in
Russia and Ukraine as well as the increase in immigration from
Ethiopia, the Committee believes that this level of funding
should be sustained to ensure a continuation of essential
programs now serving this population.
Magen David Adom Society
The Committee is disappointed the International Committee
of the Red Cross (ICRC) has not taken action to admit the Magen
David Adom Society of Israel to the International Red Cross and
Red Crescent Movement. The American Red Cross has promoted the
membership of the Society in the Movement, but little or no
positive action has been forthcoming. As a result, the American
Red Cross has withheld its headquarters contribution to the
ICRC for the past two years. The Committee is recommending bill
language that would also withhold the annual headquarters
contribution made by the Department of State unless the Magen
David Adom Society is given the opportunity to participate in
the activities of the International Red Cross and Red Crescent
Movement. This limitation will not, and is not intended to,
restrict funding for humanitarian assistance programs that may
be programmed through the ICRC using other funds provided in
this account. It is only intended to affect the funding of
approximately $8,000,000 that the United States provides on an
annual basis to the ICRC bureaucracy in Geneva.
unaccompanied and at-risk children
The Committee supports funding for programs for
unaccompanied and at-risk refugee children. The Committee
believes that the United Nations High Commissioner for Refugees
(UNHCR) should pay more attention to this issue. The Committee
recommends that the Department of State provide funding through
nongovernmental organizations and United Nations agencies for
children who are orphaned, separated from their parents, or
have other special needs as a result of armed conflict or other
causes of forced migration.
unhcr
The Committee is aware that the Department of State
traditionally contributes twenty to twenty-five percent of the
funds required for refugee programs managed by the United
Nations High Commissioner for Refugees and certain other
international relief agencies. The U.S. percentage has
escalated in the past few years as European nations have not
followed through with pledged contributions. The Committee
supports the High Commissioner in his efforts to increase UNHCR
contributions from Europe.
unrwa
The Committee supports the efforts of the Department of
State to remove anti-Semitic content in textbooks and curricula
used in schools in the West Bank and Gaza administered by the
United Nations Relief and Works Agency for Palestine Refugees
in the Near East (UNRWA). The Committee has previously
expressed concern about anti-Semitic content in Palestinian
textbooks and supports the efforts of the Department of State
to redress such content in UNRWA schools, including the
appointment of an education specialist in the region to serve
as a liaison between the Department of State, UNRWA, and the
Palestinian Ministry of Education.
United States Emergency Refugee and Migration Assistance Fund
Fiscal year 2001 level................................ $15,000,000
Fiscal year 2002 request.............................. 15,000,000
Committee recommendation.............................. 15,000,000
The Committee recommends $15,000,000 for the Emergency
Refugee and Migration Assistance (ERMA) Fund, which is the same
as the 2001 enacted level and the same as the 2002 budget
request.
The Committee notes that, as of June 1, 2001, the ERMA Fund
maintained a balance of approximately $105,000,000. Again this
year, the ERMA Fund continues to carry forward high levels of
balances. The Committee considers it appropriate for the ERMA
Fund to maintain a sizable balance, since the purpose of this
account is to facilitate a quick response to humanitarian
emergencies. The Committee is concerned that the Administration
may be using an overly stringent standard in judging whether to
draw down the ERMA Fund. The primary criterion for the use of
these resources should be the emergency needs of refugees and
other persons who fall within the mandate of the ERMA Fund. The
Committee directs the Administration to use this Fund when
these populations face serious threats to their security or
physical well-being and other resources are not available to
address these threats. The Committee does not wish to see a
situation in which critical humanitarian needs go unmet while a
large fund created to address these needs largely remains
untouched.
Nonproliferation, Anti-terrorism, Demining and Related Programs
Fiscal year 2001 level................................ $311,600,000
Fiscal year 2002 request.............................. 332,000,000
Committee recommendation.............................. 311,000,000
The Committee recommends a total appropriation of
$311,000,000 for ``Nonproliferation, Anti-terrorism, Demining
and Related Programs'', an amount that is $21,000,000 below the
request and $600,000 below the fiscal year 2001 enacted level.
The Committee recommendation funds the President's budget
request for this account with the exception of the additional
funding requested for the Lockerbie trial support
(-$16,000,000) and a reduction of $5,000,000 in the funding for
the Korean Peninsula Economic Development Organization (KEDO).
The Committee has included bill language from the fiscal
year 2001 appropriations act that imposes the requirement for
notice prior to the obligation of funds for the CTBT
Preparatory Commission.
The following is a chart that indicates fiscal year 2001
funding for the programs covered by this account, as well as
the President's request for fiscal year 2002 and the Committee
recommendation:
----------------------------------------------------------------------------------------------------------------
Fiscal year 2001 Fiscal year 2002 Committee
Program or activity funding level request recommendation
----------------------------------------------------------------------------------------------------------------
Nonproliferation and Disarmament Fund..................... 14,967,000 14,000,000 14,000,000
Export Control Assistance................................. 19,100,000 17,000,000 17,000,000
Science Centers........................................... 35,000,000 37,000,000 37,000,000
IAEA voluntary contribution............................... 47,000,000 49,000,000 49,000,000
CTBT Preparatory Commission............................... 21,056,000 20,000,000 20,000,000
Korean Peninsula Energy Development Organization.......... 54,879,000 95,000,000 90,000,000
Nonproliferation contingency.............................. 20,000,000 ................ ................
Anti-Terrorism Assistance................................. 38,000,000 38,000,000 38,000,000
Terrorist Interdiction Program............................ 4,000,000 4,000,000 4,000,000
Lockerbie Trial Support................................... 15,000,000 16,000,000 ................
Humanitarian Demining Program............................. 39,912,000 40,000,000 40,000,000
Small Arms Destruction.................................... 2,000,000 2,000,000 2,000,000
Rescission................................................ 686,000 ................ ................
-----------------------------------------------------
Total budget authority................................ 311,600,000 332,000,000 311,000,000
----------------------------------------------------------------------------------------------------------------
The funding reduction for KEDO is being made with the
expectation the Administration will renew its efforts to obtain
funding from other donors to help offset the increase in costs
for the provision of heavy fuel oil for North Korea pursuant to
the Agreed Framework. Regarding the funding for the Lockerbie
Trial, the Committee is very concerned about the types of costs
that are being charged to the United States in connection with
this trial, and believes that sufficient funds were made
available in fiscal year 2001.
kosovo demining
The Committee is very concerned about the extent to which
additional unexploded ordnance (UXO) and mine removal may be
needed in Kosovo. While the United Nations has general
authority for mine removal activities in that region, the
Committee is aware there may be an unmet need for additional
resources. Therefore the Committee directs the Secretary of
State to report to the Committee on Appropriations no later
than February 1, 2002, with (1) an assessment of the UXO
removal and demining activities that have occurred in Kosovo;
(2) an assessment of the remaining needs for such removal; and
(3) recommendations as to how the need for additional resources
can be met. In that regard, the Committee encourages the
Department of State to examine the use of the Rapid Response
Program of the Corps of Engineers as a mechanism for providing
for UXO removal and demining activities. In addition, the
Committee would support the reprogramming of funds provided
under the heading ``Assistance for Eastern Europe and the
Baltic States'' and within this account to help meet a possible
funding shortfall for these activities.
Department of the Treasury
International Affairs Technical Assistance
Fiscal year 2001 level................................ $6,000,000
Fiscal year 2002 request.............................. 6,000,000
Committee recommendation.............................. 6,000,000
The Committee recommends $6,000,000 under this heading for
international technical assistance by the Department of the
Treasury, an amount that is the same as the request and last
year's level. In operation since 1991, Treasury's Office of
Technical Assistance provides expert fiscal and monetary policy
advisors to countries of the former Soviet Union and Eastern
Europe. Beginning in fiscal year 1999, Treasury created the
Treasury International Affairs Technical Assistance (TIATA)
program and expanded the countries to Asia, Africa and Latin
America. With the Poverty Reduction Strategy Papers (PRSPs) and
other conditions required by the poorest nations to qualify for
HIPC debt relief, the Committee directs the Department of
Treasury to begin to focus half of the funds under this heading
to assisting eight or more HIPC nations. Additionally, the
Committee has required that these funds be subject to
notification procedures and therefore directs the Department to
report back to the Committee on its plans for HIPC nations for
fiscal year 2002 prior to the release of the funds.
Global Fund to Fight HIV/AIDS, Malaria, and Tuberculosis
Fiscal year 2001 level................................ ................
Fiscal year 2002 request.............................. $100,000,000
Committee recommendation.............................. ................
The Committee is not recommending establishment of a
separate account for a proposed multilateral health trust fund,
as proposed by the President. Instead, full funding would be
provided from the ``Child Survival and Health Programs Fund''
in this bill and from the unobligated balance reserved for a
multilateral HIV/AIDS trust fund in the fiscal year 2001 Act.
Debt Restructuring
Fiscal year 2001 level................................ $238,000,000
Emergency funding................................. 210,000,000
Fiscal year 2002 request.............................. 224,000,000
Committee recommendation.............................. 224,000,000
The Committee recommends $224,000,000 for debt
restructuring for fiscal year 2002. This is $224,000,000 below
the amount enacted in 2001, including emergency funding, and
the same as the request. The Committee supports the request for
debt relief that, with $16,000,000 in carryover balances, will
complete the US pledge to the HIPC Trust Fund. It also directs
that up to $25,000,000 in prior year funds be used to implement
the Tropical Forest Conservation Act of 1998, $12,000,000 more
than the request, which provided the funds as a transfer from
``Development Assistance.''
hipc trust fund
The vehicle for contributions to multilateral development
banks is the Heavily Indebted Poor Country (HIPC) Trust Fund
that was created and is administered by the International Bank
for Reconstruction and Development. The HIPC Trust Fund accepts
contributions from more developed countries to help the Inter-
American Development Bank, the African Development Bank, the
Central American Bank for Economic Integration, and possibly
other financial institutions, to defray the cost of writing
down unserviceable debt owed by certain member countries.
The following table indicates the financial status of the
HIPC Trust Fund as of May 30, 2001:
[Amounts in millions of U.S. dollars]
------------------------------------------------------------------------
Contributions
received Pledges Total
------------------------------------------------------------------------
Australia...................... 10 2 12
Austria........................ 17 25 42
Belgium........................ 40 ........... 40
Canada......................... 112 ........... 112
Denmark........................ 50 10 60
Finland........................ 25 8 33
France......................... 160 21 181
Germany........................ 178 48 226
Greece......................... 9 2 11
Iceland........................ 1 1 2
Ireland........................ 19 5 24
Italy.......................... 105 48 153
Japan.......................... 56 144 200
Luxembourg..................... 2 ........... 2
Netherlands.................... 172 ........... 172
New Zealand.................... 2 ........... 2
Norway......................... 79 ........... 79
Portugal....................... 21 ........... 21
Spain.......................... 54 70 124
Sweden......................... 46 35 81
Switzerland.................... 45 15 60
United Kingdom................. 161 145 306
United States.................. ............. 600 600
----------------------------------------
Total...................... 978 1,566 2,544
------------------------------------------------------------------------
Since the above table was made available to the Committee,
a $122,740,000 initial contribution to the trust fund has been
made by the US and will allow for debt relief to Bolivia,
Honduras, Madagascar, and Sao Tome & Principe. Each of these
four countries has demonstrated its commitment to redirect
budgetary savings from debt servicing to programs that reduce
poverty and promote economic growth. The Committee's cautious
approach to funding for the HIPC Trust Fund continues. It is
the Committee's view the HIPC Initiative will be extremely
difficult to implement. Public and private vigilance will be
required to ensure that domestic budgetary savings resulting
from reduced sovereign debt payments under the HIPC Initiative
will, in fact, be used by poor country governments solely for
economic growth and social/health activities aimed at poverty
alleviation. Additionally, the Committee believes that debt
relief was not intended to be the one solution to the
challenges facing HIPC countries. Instead it must be seen as
only one step toward poverty alleviation that, if not
accompanied by effective reforms and an improvement of the
conditions that attract investment and economic growth, will
result in only short lived benefits to the poorest peoples of
the world.
conditions on contributions to hipc trust fund
The Committee has included bill language prohibiting United
States contributions to the HIPC Trust Fund on behalf of any
country credibly reported to be a gross violator of
internationally recognized human rights or is engaged in a
civil or military conflict that undermines its ability to
fulfill the HIPC criteria regarding poverty alleviation.
The Committee also has recommend bill language that
conditions funding for the HIPC Trust Fund on Agreement that
new lending to HIPC participants by beneficiary multilateral
development banks be deferred for up to 24 months. It is the
Committee's intent that debt reduction under the enhanced HIPC
Initiative not be taken as a signal for renewed lending by
international financial institutions or export financing
agencies.
accountability and future support for the hipc initiative
The Committee again requests quarterly reports on
obligations made from this account, and on the purposes for
which the funds are obligated. During the first quarter of the
fiscal year, the Department of the Treasury should continue to
report to the Committee pursuant to the regular notification
procedures of the Committees on Appropriations on the intended
use of the funds provided in this account. Such report should
specify the countries that would receive debt restructuring
during fiscal year 2002. The Committee understands that credit
ratings can fluctuate during the year, thus resulting in a
change in the budget cost necessary to restructure debt.
United States Community Adjustment and Investment Program
Fiscal year 2001 level................................ ................
Fiscal year 2002 request.............................. 500,000
Committee recommendation.............................. ................
The Committee is not recommending additional appropriations
at this time for a domestic program for community investment
and adjustment within the United States. The Community
Adjustment and Investment Program was initially ``fully
funded'' with a 3-year capitalization of $22,500,000 and since
has received $20,000,000 in additional appropriations to date.
Based on a September 2000 GAO report, the CAIP has systemic
problems in its organizational structure; a management system
that hinders efficient program management; and faulty
eligibility procedures. The Committee is not aware of how an
additional $500,000 to the CAIP could improve US trade
adjustment assistance in 2002.
TITLE III--MILITARY ASSISTANCE
Funds Appropriated to the President
International Military Education and Training
Fiscal year 2001 level................................ $55,000,000
Emergency funding................................. 2,875,000
Fiscal year 2002 request.............................. 65,000,000
Committee recommendation.............................. 65,000,000
The Committee recommends $65,000,000 for the International
Military Education and Training program, which represents an
increase of $7,125,000 above the fiscal year 2001 level and is
the same as the requested level.
indonesia and guatemala
The Committee includes prior year bill language limiting
Indonesia and Guatemala to Expanded IMET only. Funding for both
is subject to notification.
expanded imet
The Committee strongly supports the continuation of
Expanded IMET (E-IMET) programs. In that regard, the Committee
notes that part of the success of the E-IMET programs is
dependent on appropriate equipment critical to the learning
process. For example, equipment that enhances simultaneous
translation capacity or remote or distance learning
teleconferencing could greatly advance the reach and efficiency
of E-IMET programs. Yet, there is no consideration within the
program budget for such needs. Consequently, the Committee
requests that the Administration make funds available within
the E-IMET program as needed to support equipment and other
infrastructure requirements of E-IMET programs.
The Committee also urges the Departments of State and
Defense to favorably consider funding to develop an educational
program in security building and peace support operations at
the Naval Postgraduate School. In addition, the Administration
should consider the development of programs to help nations
institutionalize financial integrity, accountability and
transparency in defense budgeting. Such programs could also
help nations eliminate unnecessary forces and military
infrastructure, so that their scarce defense resources can be
focused on priorities critical to making them effective
security partners with the United States.
greece and turkey
For fiscal year 2002, section 512 of the Security
Assistance Act of 2000 (Public Law 106-280) authorizes up to
$1,000,000 in assistance for Greece and up to $2,500,000 in
assistance for Turkey from funds that are authorized to be
appropriated for International Military Education and Training.
From the increase in funds recommended for this account, the
Committee supports an increase in assistance for Greece and
Turkey consistent with the authorization levels.
chile
The Committee is aware of the decision by the Chilean
Appeals Court on July 9, 2001 to declare Augusto Pinochet
mentally unfit to stand trial for crimes committed during his
17-year presidency. While the Committee does not encourage the
prosecution of any person who is mentally incapacitated, the
Committee would be concerned if it becomes apparent that
pressure from the military played a role in this decision. The
Committee strongly encourages the Chilean military to respect
the independence of the judiciary and urges the Departments of
Defense and State to emphasize this point in the training and
education provided to the Chilean military with IMET funds.
report on foreign military training
The Committee is concerned by the extent of information
classified in the fiscal year 2001 Foreign Military Training
Report. The Committee requests the Departments of State and
Defense, when preparing and presenting the Foreign Military
Training and Defense Department Engagement Activities of
Interest report to Congress in fiscal year 2002 (consistent
with national security requirements) not classify aggregate
training numbers by country; declassify to the greatest extent
possible information about foreign units trained, the location
of training and U.S. trainers' units; provide accurate course
descriptions; distinguish between the number of courses given
and the number of students trained; and report estimates for
coming-year training that include all categories reported.
imet availability
The Committee has retained language from fiscal year 2001
which provides that, of the funds made available for IMET,
$1,000,000 may remain available until expended.
Foreign Military Financing Program
Fiscal year 2001 level................................ $3,545,000,000
Emergency funding................................. 31,000,000
Fiscal year 2002 request.............................. 3,674,000,000
Committee recommendation.............................. 3,627,000,000
The Committee recommends $3,627,000,000 in Foreign Military
Financing grants. This program level is $51,000,000 above the
fiscal year 2001 level and $47,000,000 below the President's
request. If emergency supplemental funding is excluded from the
calculation, the recommended level is $82,000,000 above the
fiscal year 2001 level. The funding level assumes an increase
above last year's level of $60,000,000 for Israel, as requested
by the President.
The Committee remains strongly supportive of the goals of
the Foreign Military Financing (FMF) grants program. However,
the Security Assistance Act of 2000 (Public Law 106-280)
contains an authorization ceiling that is $47,000,000 below the
President's request. Therefore the Committee is complying with
the authorization ceiling.
israel
The Committee recommends a total Foreign Military Financing
(FMF) program of not less than $2,040,000,000 in grants for
Israel which shall be available within 30 days of enactment or
by October 31, 2001, whichever is later.
It is the Committee's view that while Israel's economy has
improved significantly in recent years, the security situation
in the Middle East has worsened. Therefore, the Committee is
convinced the United States must make every effort to carry out
its long-standing policy of ensuring that Israel's
technological edge is maintained. As a result, the Committee
has provided an increase of $60,000,000 above the fiscal year
2001 level, as requested by the President. The Committee also
believes that a sustained military improvement program will be
required over the next ten years, at an annual rate of
approximately $60,000,000, to assist Israel in responding to
these emerging security challenges. However, with respect to
this recommended increase in military assistance, the Committee
must be very clear that it cannot commit future Congresses to
the future appropriation of funds. Therefore, future increases
in military assistance will require the annual review of the
Congress and will necessarily be based upon an assessment of
the security situation at the time.
The Committee also recommends that, to the extent that the
Government of Israel requests that FMF grant funds for Israel
be used for such purposes, and as agreed by Israel and the
United States, funds may be made available for advanced weapons
systems of which $535,000,000 shall be available for the
procurement in Israel of defense articles and defense services,
including research and development. This represents a
$15,000,000 increase over the fiscal year 2001 level and
reflects a recognition by the Committee of Israel's need for
similar annual increases over the next few years in order to
provide Israel with increased flexibility in meeting the
emerging security challenges in the Middle East.
jordan
The Committee strongly supports the Administration's
efforts to improve Jordanian security and therefore recommends
full funding of the President's request of $75,000,000 for
Jordan. Under the able leadership of King Abdullah, Jordan
plays a critical role in supporting peace and security in the
Middle East. The Committee is well aware that Jordan's security
requirements are extensive, particularly in the areas of ground
force modernization and border security.
egypt
The Committee recommends a total of $1,300,000,000 in
Foreign Military Financing grants for Egypt.
Pursuant to the President's budget request bill language is
recommended that would require that funds estimated to be
outlayed for Egypt during fiscal year 2002 shall be transferred
to an interest bearing account for Egypt in the Federal Reserve
Bank of New York within 30 days of enactment of this Act or by
October 31, 2001, whichever is later. The Committee fully
appreciates Egypt's strategic location, its immediate proximity
to Libya and Sudan both of which have supported international
terrorism; its critical contribution during the Gulf War in
resisting Iraqi aggression; and its essential role in the
Middle East peace process. The Committee is convinced that
continued military cooperation between Egypt and the United
States remains in the national security interests of both
countries.
the baltics
The Committee strongly supports at least the Presidents'
budget request of $21,000,000 for Estonia, Latvia, and
Lithuania. Previous years' funding has significantly supported
the commendable efforts of these countries to attain Western
military standards and to improve their capacities to
contribute to international security through the provision of
peacekeepers to international peacekeeping missions.
administrative expenses
The Committee has recommended a limitation on
administrative expenses of $35,000,000. This is the same as the
level requested by the President and $2,000,000 above the
fiscal year 2001 level.
foreign military financing surcharge
The Committee has included a limitation on Foreign Military
Financing operating costs of $348,000,000. This limitation may
be waived pursuant to the regular notification procedures of
the Committees on Appropriations. This is $8,000,000 more than
the fiscal year 2001 level and the same as the request.
fmf expenditure rate
The Committee continues prior year language that requires
that Foreign Military Financing funds be expended at the
minimum rate necessary to make timely payments for defense
articles and services. In addition, it continues language
providing that such funds shall be obligated upon apportionment
in order to allow for the orderly execution of program funds.
procurement agreements
The Committee has continued prior year language requiring
recipients of Foreign Military Financing grants to sign
agreements with the United States prior to using FMF funds to
finance the procurement of any item not sold by the United
States under the Arms Export Control Act.
prohibitions
The Committee has included bill language prohibiting
military assistance to Sudan and Liberia. The Administration
did not request military assistance for Sudan or Liberia for
fiscal year 2002.
The Committee continues to support United States assistance
to Guatemala to implement the Guatemalan peace accords.
However, the Committee is concerned about limited progress in
certain areas such as strengthening Guatemala's justice system
and reform of the Guatemalan military. The Committee urges the
Government of Guatemala to guarantee the safety of those
working for human rights. It is also concerned about attacks
and threats against journalists in Guatemala.
The Committee retains the existing ban on Foreign Military
Financing and International Military Education and Training
(IMET), with the exception of E-IMET, until adequate reforms of
the Guatemalan Armed Forces are carried out as established in
the peace accords. The Committee is concerned about the
postponement of the disbanding of the Presidential General
Staff (EMP) and its replacement by civilian institutions.
Peacekeeping Operations
Fiscal year 2001 level................................ $127,000,000
Fiscal year 2002 request.............................. 135,000,000
Committee recommendation.............................. 135,000,000
The Committee recommends $135,000,000 for voluntary
contributions for international peacekeeping operations. This
amount is $8,000,000 above the level provided in fiscal year
2001, and is the same as the President's request.
TITLE IV--MULTILATERAL ECONOMIC ASSISTANCE
International Financial Institutions
Global Environment Facility
Fiscal year 2001 level................................ $108,000,000
Fiscal year 2002 request.............................. 107,500,000
Committee recommendation.............................. 82,500,000
The Committee recommends $82,500,000 for the Global
Environment Facility (GEF), administered by the World Bank. The
recommendation is $25,000,000 below the request and $25,500,000
less than the amount enacted for 2001.
Contribution to the International Development Association
Fiscal year 2001 level................................ $775,000,000
Fiscal year 2002 request.............................. 803,400,000
Committee recommendation.............................. 803,400,000
The Committee is providing $803,400,000 for the U.S.
contribution to the Thirteenth Replenishment of the
International Development Association (IDA), the same as the
request and a $28,400,000 increase above the 2001 enacted
level.
The Committee directs the Secretary of the Treasury to
vigorously advocate that the upcoming pledging session for IDA
provide all-grant assistance to each HIPC debt forgiveness
beneficiary for a period of 3 years following its HIPC decision
point. With respect to its support for multilateral debt
forgiveness under certain conditions and conversion of IDA to
an agency making poverty alleviation grants, the Committee
concurs with the March, 2000 recommendations of the
International Financial Institution Advisory Commission (the
Meltzer Commission).
Contribution to the Multilateral Investment Guarantee Agency
Fiscal year 2001 level................................ $10,000,000
Fiscal year 2002 request.............................. 10,000,000
Committee recommendation.............................. 10,000,000
The Committee is providing $10,000,000 for an additional
U.S. payment to the World Bank's Multilateral Investment
Guarantee Agency, the same level as the request and the 2001
enacted level.
(Limitation on callable capital subscriptions)
Fiscal year 2001 level................................ ($50,000,000)
Fiscal year 2002 request.............................. (50,000,000)
Committee recommendation.............................. (50,000,000)
General Concerns About the World Bank Group
private sector strategy
The Committee again commends the IDA-12 Deputies for
recognizing the critical role undertaken by the private sector
in developing countries. The entire World Bank Group should
have a complementary and not competitive role with private
sector investment in developing countries. The Committee urges
the Secretary of the Treasury to work with the World Bank Group
to develop a private sector strategy that is consistent with
its commitment to sustainable economic growth, including a
social and environmental investment screen for World Bank Group
lending that supports the private sector.
environment and energy
The Committee is aware that there is ample private
financing for the energy sector in most developing countries,
although inappropriate forms of public control have acted as a
significant investment barrier in some. It is also aware that
over the past 25 years, energy remains a valuable resource but
is no longer scarce. Central Asia and Africa are now recognized
as important future alternatives to dependence on Middle East
fossil fuel energy, and wind power is becoming commercially
viable in some regions. The Committee no longer anticipates a
global energy shortage in the foreseeable future. However,
where affordable and cleaner energy is not available, job
growth, poverty alleviation, and health improvement all come to
an abrupt halt and often decline.
As the primary justification for using public money in the
energy and extractive sectors is to underpin economic
development with sound policy, both technical assistance
through AID and financial participation by the multilateral
banks must focus on putting into place new policies, laws, and
regulations that would otherwise not occur. These serve to
insure that the income from valuable natural resources benefits
the population at large, not just a few officials at the
receiving end of the transaction. The involvement of AID, OPIC
or the World Bank can provide support for the efforts of United
States companies that seek to protect the environment and
corporate reputations in their dealings with foreign leaders
who demonstrate minimal concern for the welfare of their own
citizens or good governance.
objectives
The Committee is concerned that with the many reform
proposals for the World Bank over the years, few have resulted
in major changes to the Bank's basic structure or function. The
Committee believes the World Bank and other multilateral
development banks should have a clear set of objectives with
the top priority to raise the standard of living of people
throughout the world. The Committee supports the Treasury
Department's attempts to focus the World Bank's core objective
to raising per capita income, and the Committee urges the
Administration to include basic education in the scope of
activities that fall under this purpose.
education
The Committee understands that the World Bank is having
difficulty fulfilling its pledge made at the April 2000,
Education for All Forum in Senegal to increase its education
lending by 50 percent. The World Bank's efforts to help
developing countries attain the goal of universal, free basic
education by 2015 will be critical if these countries are to
meet this objective. The Committee urges the Secretary of the
Treasury to work with the World Bank to increase resource
allocation, and to make the necessary adjustments in its
education lending program to ensure effective delivery of
loans. The Committee directs the Secretary of the Treasury to
report on the progress of these efforts no later than 90 days
after the enactment of this Act.
environmental and social assessment of structural adjustment programs
The Committee notes that more than three-eighths of the
World Bank's portfolio supports structural adjustment. This
type of lending is exempt from the environmental assessment
guidelines that cover individual projects. An internal World
Bank study concluded that the Bank rarely considers the
environmental and social impacts of these loans when they are
in the design process. The Committee directs the Secretary of
the Treasury and the U.S. Executive Director at the World Bank
to work with management to institute a dynamic, participatory
process to assess the environmental and social impacts of
structural adjustment loans.
Contribution to the Inter-American Development Bank Group
The Committee notes that again this year, there is no
request for additional purchases of ordinary or callable
capital stock of the Inter-American Development Bank or a
request for the Bank's concessional window, the Fund for
Special Operations, which is now self-sustaining as a result of
repayments of prior year loans. Nonetheless, the Inter-American
Development Bank expects to benefit from appropriations
provided under the heading ``Debt Restructuring'' in title II
for the purpose of repaying unsustainable loans previously
incurred by heavily indebted poor countries in the region.
Inter-American Investment Corporation
Fiscal year 2001 level................................ $25,000,000
Fiscal year 2002 request.............................. 25,000,000
Committee recommendation.............................. 10,000,000
The Committee recommends an appropriation of $10,000,000 of
the scheduled annual United States purchase of share capital of
the Inter-American Investment Corporation. The recommendation
is $15,000,000 less than the request and the 2001 enacted
level.
For the past 10 years, the Inter-American Investment
Corporation has supported small and medium private enterprises
in Latin America and the Caribbean through strategic equity
investments and loans. The small and medium enterprise sector
is the major source of new jobs and economic growth in the
region, but is generally overlooked by multilateral banks that
focus on the public sector and bilateral donor agencies that
focus on microenterprise credit.
Multilateral Investment Fund
There is no request in the 2002 budget for an appropriation
to the Multilateral Investment Fund.
Asian Development Bank Group
There is no request in the 2002 budget for paid-in or
callable capital stock of the Asian Development Bank.
Contribution to the Asian Development Fund
Fiscal year 2001 level................................ $72,000,000
Fiscal year 2002 request.............................. 103,017,000
Committee recommendation.............................. 103,017,000
The Committee recommends an appropriation of $103,017,000
for the concessional Asian Development Fund, an amount that is
$31,017,000 above the amount provided in fiscal year 2001 and
the same as the amount requested.
Contribution to the African Development Bank
Fiscal year 2001 level................................ $6,100,000
Fiscal year 2002 request.............................. 5,100,000
Committee recommendation.............................. 5,100,000
The Committee recommends an appropriation of $5,100,000 for
the African Development Bank, an amount that is $1,000,000
below the amount provided in fiscal year 2001 and the same as
the amount requested.
(Limitation on callable capital subscriptions)
Fiscal year 2001 level................................ ($97,548,522)
Fiscal year 2002 request.............................. (79,991,500)
Committee recommendation.............................. (79,991,500)
The African Development Bank expects to benefit from
appropriations provided under the heading ``Debt
Restructuring'' in title II for the purpose of repaying
unsustainable loans previously incurred by heavily indebted
poor countries in the region.
Contribution to the African Development Fund
Fiscal year 2001 level................................ $100,000,000
Fiscal year 2002 request.............................. 100,000,000
Committee recommendation.............................. 100,000,000
The recommendation for the soft loan African Development
Fund is $100,000,000, the same as the amount requested and the
same as the amount provided in fiscal year 2001.
Contribution to the European Bank for Reconstruction and Development
Fiscal year 2001 level................................ $35,778,717
Fiscal year 2002 request.............................. 35,778,717
Committee recommendation.............................. 35,778,717
(Limitation on callable capital subscriptions)
Fiscal year 2001 level................................ ($123,237,803)
Fiscal year 2002 request.............................. (123,237,803)
Committee recommendation.............................. (123,237,803)
The Committee is recommending $35,778,717 for the European
Bank for Reconstruction and Development. This amount is
identical to the appropriation provided in fiscal year 2001 and
the same as the President's request.
Contribution to the International Fund for Agricultural Development
Fiscal year 2001 level................................ $5,000,000
Fiscal year 2002 request.............................. 20,000,000
Committee recommendation.............................. 20,000,000
The Committee is again providing a separate appropriation
for the International Fund for Agricultural Development,
reflecting the assumption of responsibility for this
multilateral institution by the Department of the Treasury in
February, 2000. The fiscal year 2002 recommendation is
$20,000,000, the same as the request and $15,000,000 above the
amount provided in 2001.
International Organizations and Programs
Fiscal year 2001 level................................ $186,000,000
Fiscal year 2002 request.............................. 186,000,000
Committee recommendation.............................. 196,000,000
The Committee has recommended $196,000,000 for
International Organizations and Programs. This is $10,000,000
more than the fiscal year 2001 level and $10,000,000 more than
the President's request. As in fiscal year 2001, funding for a
grant to UNICEF is provided in the ``Child Survival and Disease
Programs Fund'' under title II.
The Committee recommendation also continues prior year bill
language prohibiting the use of funds for the Korean Peninsula
Energy Development Organization (KEDO) or the International
Atomic Energy Agency (IAEA). Both organizations are funded
under ``Nonproliferation, Anti-Terrorism, Demining and Related
Programs''.
The Committee requires the Department of State to report
back to the Committee within 90 days and submit all United
Nations Fund For Population Activities (UNFPA) agreements that
have been signed with local, provincial and national
governments of China relating to administration of UNFPA
programs in China.
united nations development program
The Committee appreciates recent efforts of the United
Nations Development Programme (UNDP) to streamline its mission
and to focus primarily on enhancing governance, seeking out
innovative pilot programs, and forming strategic partnerships.
The Committee urges the UNDP to continue on this productive
path, and recommends a level not less than $97,100,000 in
International Organizations and Programs funding be set aside
to support the UNDP.
united nations voluntary fund for victims of torture
The Committee supports not less than $5,000,000 for the
U.S. contribution to the UN Voluntary Fund for Victims of
Torture. Assisting these centers not only reinforces U.S.
opposition to human rights violations but has proven to be an
effective method for lessening the incidence of torture and
promotes human rights and democracy abroad. The Committee urges
the Department of State to negotiate with other governments to
persuade them to increase their contributions to the Fund.
TITLE V--GENERAL PROVISIONS
The Committee recommends that several of the general
provisions carried in the fiscal year 2001 act be deleted.
These provisions are either addressed elsewhere in permanent
law, have been considered by the appropriate authorizing
committee, or are no longer necessary.
The Committee recommends the following new and revised
general provisions.
Sec. 502, ``Private and Voluntary Organizations'' is a new
general provision that repeats language previously carried
under that heading in title II; the language prohibits funds
for any United States private and voluntary organization,
except any cooperative development organization, which obtains
less than 20 percent of its total annual funding for
international activities from sources other than the United
States government, but allows the Administrator of AID to waive
this prohibition on a case-by-case basis after taking into
account various factors; it also specifies that funds
appropriated under title II should be made available to private
and voluntary organizations at a level at least equivalent to
the fiscal year 1995 level.
Sec. 505, ``Limitation on Representational Allowances'' is
modified by limiting representation expenses associated with
funds made available under ``Foreign Military Financing
Program'' to $150,000.
Sec. 508, ``Military Coups'' is modified to specify that
resumption of assistance to a country that was previously
suspended as the result of an elected head of government being
deposed by decree or military coup may occur if the President
determines that a democratically elected government has taken
office or substantial progress has been made towards the
holding of elections; prior year language limited the
resumption of assistance to a determination that a
democratically elected government had taken office.
Sec. 511, ``Availability of Funds'' is modified to add
funds appropriated to carry out section 23 of the Arms Export
Control Act to the list of funds that may remain available
until for an extended period of time if obligated before the
expiration of their periods of availability, and to limit the
extended availability of funds obligated prior to the
expiration of their availability to four years. The final
proviso of this section, requiring a specific report on balance
of payment and economic policy reform, is deleted.
Sec. 512, ``Limitation on Assistance to Countries in
Default'', is modified to allow for a waiver of the provisions
of this section if the President determines, following
consultations with the Committees on Appropriations, that
assistance to a country otherwise prohibited from receiving
funds is in the national interest of the United States.
Sec. 515, ``Notification Requirements'' is modified by
changing the name of the account ``Child Survival and Disease
Programs Fund'' to ``Child Survival and Health Programs Fund''
consistent with the modification to the name of the account
made in title II.
Sec. 520, ``Special Notification Requirements'' is modified
to delete Serbia, Ethiopia, and Eritrea.
Sec. 523, ``Prohibition Against Indirect Funding to Certain
Countries'' is modified by replacing People's Republic of China
with Sudan to make it consistent with section 507,
``Prohibition Against Direct Funding for Certain Countries''.
Sec. 524, ``Notification on Excess Defense Equipment'' is
modified to limit the notifications of excess defense articles
to those that are significant military equipment or had an
original acquisition cost of $7,000,000 or more, of if the
recipient country is subject to notification elsewhere in this
Act.
Sec. 525, ``Authorization Requirement'' is modified to add
the Trade and Development Agency and the Peace Corps to the
list of accounts that are exempted from the waiver of the
authorization requirement.
Sec. 526, ``Democracy Programs'' is modified by deleting
language authorizing grants for democracy activities in China,
which are now authorized in section 514(c) of Public Law 106-
286; to allow up to $3,000,000, rather than $2,000,000, for
support of nongovernmental organizations located outside China
to support activities which preserve cultural traditions and
promote sustainable development and environmental conservation
in Tibetan communities in that country; to delete a provision
that amended a previous appropriations act; and to require a
notification for certain activities in China.
Sec. 532, ``Authorities for the Peace Corps, Inter-American
Foundation and African Development Foundation'' is modified by
removing subsection (b), which had exempted the International
Fund for Agricultural Development (IFAD) from limitations on
the availability of funds appropriated under ``International
Organizations and Programs''; IFAD is now appropriated in title
IV as a separate account.
Sec. 533, ``Impact on Jobs in the United States'' is
modified by deleting subsection (b), which affected assistance
to a foreign country for certain specified processing zones or
designated areas.
Sec. 534, ``Special Authorities'' is modified to carry
language that had been carried in another provision to provide
that section 576 of the Foreign Operations, Export Financing,
and Related Programs Appropriations Act, 1997, as amended,
shall not apply to the provision of assistance from
international financial institutions to the Federal Republic of
Yugoslavia (the same language was carried in section 594 of the
fiscal year 2001 appropriations act); it is also modified to
provide that during fiscal year 2002, the President may use up
to $50,000,000 under the authority of section 451 of the
Foreign Assistance Act, notwithstanding the funding ceiling in
section 451(a).
Sec. 537, ``Eligibility for Assistance'' is modified to
prohibit the provisions of the section from applying to
assistance to the government of a country that violates section
116 of the Foreign Assistance Act of 1961.
Sec. 538, ``Earmarks'' is modified by deleting references
to base rights countries.
Sec. 541, ``Purchase of American-Made Equipment and
Products'' is modified by deleting subsections (b), (c), and
(d).
Sec. 543, ``Nongovernmental Organizations--Documentation''
is modified by changing the title and language in the provision
from ``private voluntary'' to ``nongovernmental''.
Sec. 544, ``Prohibition on Assistance to Foreign
Governments that Export Lethal Military Equipment to Countries
Supporting International Terrorism'' is modified by updating a
reference to section 6(j) of the Export Administration Act.
Sec. 547, ``War Crimes Tribunals Drawdown'' is modified by
removing a requirement for specified reports that were due
during fiscal year 2001.
Sec. 558, ``Assistance for the Middle East'' is modified by
reducing the cap on Middle East spending from $5,241,150,000 to
$5,141,150,000.
Sec. 560, ``Cambodia'' is modified to exempt assistance for
basic education from the funding limitation of the section.
Sec. 562, ``Korean Peninsula Energy Development
Organization'' is modified by limiting funds for KEDO to
$95,000,000 and providing for certain certification and
reporting requirements.
Sec. 563, ``PLO Compliance Report'' is a new section.
Sec. 565, ``Iraq'' is modified by authorizing assistance
under the ``Economic Support Fund'' for programs benefiting the
Iraqi people and to support efforts to bring about political
transition in Iraq.
Sec. 568, ``Indonesia'' is modified to refer to Indonesian
Ministry of Defense or military personnel, rather than
Indonesia, for the purposes of applying this section to the
possible provision of assistance for Indonesia.
Sec. 569, ``Man and the Biosphere'' is modified by removing
the reference to the World Heritage Fund.
Sec. 572, ``Voluntary Separation Incentives'' amends
existing law to provide authority for an additional year for
the Agency for International Development to extend voluntary
separation incentives to certain employees.
Sec. 577, ``Abolition of the Inter-American Foundation'' is
modified to extend the authorities of this section for an
additional year.
Sec. 578, ``War Criminals'' is modified to provide that
none of the funds appropriated pursuant to this Act may be made
available, with the exception of humanitarian assistance and
assistance for democratization, to any country, entity, or
municipality whose competent authorities have failed to take
necessary and significant steps to apprehend and transfer to
the International Criminal Tribunal for the Former Yugoslavia
all persons publicly indicted by the Tribunal unless such
authorities are (1) cooperating with the Tribunal in specified
ways and (2) taking steps that are consistent with the Dayton
Accords; in addition, a waiver provision is included to allow
assistance if it is in the national interest of the United
States.
Sec. 580, ``Basic Education for Pakistan'' is modified to
delete a reference to chapter 1 of part 1 of the Foreign
Assistance Act of 1961 and to delete a reference to
notification requirements.
Sec. 581, ``Heavily Indebted Poor Countries Trust Fund
Authorization'' is a new provision that amends section
801(b)(1) of the Foreign Operations, Export Financing, and
Related Programs Appropriations Act, 2001, to increase the
authorization level of the aforementioned trust fund from
$435,000,000 to $600,000,000, consistent with the funding
recommendation in title II of this Act.
Sec. 582, ``Funding for Serbia'' is similar to section 594
of the fiscal year 2001 appropriations act, except that it does
not specify a funding ceiling for assistance for Serbia and
does not contain subsection (e), which dealt with transition
issues related to state liabilities, assets, and property.
Sec. 583, ``Improving Global Health Through Safe
Injections'' is a new general provision that directs the Agency
for International Development to develop and implement
effective strategies to improve injection safety in its health
programs, and to report to the Congress not later than March
31, 2002, on its efforts in this regard.
Sec. 584, ``El Salvador Reconstruction'' is a new general
provision that provides that not less than $100,000,000 shall
be made available during fiscal year 2002 for rehabilitation
and reconstruction assistance for El Salvador, of which not
less than $65,000,000 shall be derived from funds appropriated
in this Act and not less than $35,000,000 shall be derived from
funds appropriated for fiscal year 1999 and prior years, from
certain specified accounts.
provisions retained from fiscal year 2001
The following general provisions from the fiscal year 2002
Act are retained in the fiscal year 2001 Act unchanged except
for technical corrections, references to fiscal year 2002, and
new section numbers where appropriate:
Sec. 501. Obligations During Last Month of Availability.
Sec. 503. Limitation on Residence Expenses.
Sec. 504. Limitation on Expenses.
Sec. 506. Prohibition on Financing Nuclear Goods.
Sec. 507. Prohibition Against Direct Funding of Certain
Countries.
Sec. 509. Transfers Between Accounts.
Sec. 510. Deobligation/Reobligation Authority
Sec. 513. Commerce and Trade.
Sec. 514. Surplus Commodities.
Sec. 516. Limitation on Availability of Funds for
International Organizations and Programs.
Sec. 517. Independent States of the Former Soviet Union
Sec. 518. Prohibition on Funding for Abortions and
Involuntary Sterilization.
Sec. 519. Export Financing Transfer Authorities.
Sec. 521. Definition of Program, Project, and Activity.
Sec. 522. Child Survival and Disease Prevention Activities.
Sec. 527. Prohibition on Bilateral Assistance to Terrorist
Countries.
Sec. 528. Debt-for-Development.
Sec. 529. Separate Accounts.
Sec. 530. Compensation for U.S. Executive Directors to
International Financial Institutions.
Sec. 531. Compliance with United Nations Sanctions against
Iraq.
Sec. 535. Policy on Terminating the Arab League Boycott of
Israel and Normalizing Relations with Israel.
Sec. 536. Administration of Justice Activities.
Sec. 539. Ceilings and Earmarks.
Sec. 540. Prohibition on Publicity and Propaganda.
Sec. 542. Prohibition of Payments to United Nations
Members.
Sec. 545. Withholding of Assistance for Parking Fines Owed
by Foreign Countries.
Sec. 546. Limitation on Assistance for the PLO for the West
Bank and Gaza.
Sec. 548. Landmines.
Sec. 549. Restrictions Concerning the Palestinian
Authority.
Sec. 550. Prohibition of Payment of Certain Expenses.
Sec. 551. Special Debt Relief for the Poorest.
Sec. 552. Authority to Engage in Debt Buybacks or Sales.
Sec. 553. Restrictions on Voluntary Contributions to United
Nations Agencies.
Sec. 554. Haiti Coast Guard.
Sec. 555. Limitation on Assistance to the Palestinian
Authority.
Sec. 556. Limitation on Assistance to Security Forces.
Sec. 557. Discrimination Against Minority Religious Faiths
in the Russian Federation.
Sec. 559. Enterprise Fund Restrictions.
Sec. 561. Foreign Military Financing Report.
Sec. 564. Prohibition on Assistance to the Palestinian
Broadcasting Corporation.
Sec. 566. Kyoto Protocol.
Sec. 567. West Bank and Gaza Program.
Sec. 570. Taiwan Reporting Requirement.
Sec. 571. Restrictions on Assistance to Governments
Destabilizing Sierra Leone.
Sec. 573. Contributions to United Nations Population Fund.
Sec. 574. American Churchwomen in El Salvador.
Sec. 575. Procurement and Financial Management Reform.
Sec. 576. Commercial Leasing of Defense Articles.
Sec. 579. User Fees.
House of Representatives Report Requirements
Transfer of Funds
Pursuant to clause 3(f)(2) of rule XIII of the Rules of the
House of Representatives, the following is submitted describing
the transfer of funds provided in the accompanying bill. Under
``Development credit authority'' up to $7,500,000 is authorized
to be transferred to the account from a variety of sources.
Rescissions
Clause 3(f)(2) of rule XIII of the Rules of the House of
Representatives requires a separate listing of rescissions.
There are no rescissions recommended in the accompanying bill.
Constitutional Authority
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives states that:
Each report of a committee on a bill or joint
resolution of a public character, shall include a
statement citing the specific powers granted to the
Congress in the Constitution to enact the law proposed
by the bill or joint resolution.
The Committee on Appropriations bases its authority to
report this legislation from Clause 7 of Section 9 of Article I
of the Constitution of the United States of America which
states:
No money shall be drawn from the Treasury but in
consequence of Appropriations made by law * * *
Appropriations contained in this Act are made pursuant to
this specific power granted by the Constitution.
Changes in the Application of Existing Law
Pursuant to clause 3(f), rule XIII of the Rules of the
House of Representatives, the following statements are
submitted describing the effects of provisions in the
accompanying bill which directly or indirectly change the
application of existing law. Most of the language has been
provided in previous measures including supplementals for the
departments and agencies carried in the accompanying bill.
1. The bill contains appropriations for a number of items
for which authorizations for fiscal year 2002 have not yet been
enacted. The bill allows funds appropriated in the bill to be
obligated in the absence of a prior authorization of
appropriations.
2. The bill provides that a few of the appropriations shall
remain available for obligation beyond the current fiscal year.
In all cases it is deemed desirable to carry such language in
order to provide for orderly administration of such programs
and effective use of funds.
3. The bill contains a number of general provisions and
other language that have been carried in the bill in past
years.
4. Under ``Export-Import Bank of the United States'', funds
are prohibited for the export of nuclear equipment, fuel, or
technology to any country other than a nuclear-weapon state as
defined in Article IX of the Treaty on the Non-Proliferation of
Nuclear Weapons eligible to receive economic or military
assistance that has detonated a nuclear explosive after the
date of enactment.
5. Under ``Overseas Private Investment Corporation'', the
Corporation is authorized to make expenditures, and it is
stated that administrative expenses shall not include project-
specific costs and other related costs. In addition, funds are
authorized to be derived by transfer from the noncredit
account. Finally, funds are authorized for administrative
expenses by transfer from the noncredit account.
6. Under ``Child Survival and Health Programs Fund'' the
bill contains provisions relating to abortion and family
planning that were carried in the fiscal year 2001 Act under
``Development Assistance''; other authorities for the use of
the fund were contained in the fiscal year 2001 Act and are
consistent with the Foreign Assistance Act; in addition, funds
may be made available for nonproject assistance only for
ongoing health programs; in addition, language is provided that
indicates how the funds should be allocated among various
activities, and up to $60,000,000 is authorized to be made
available for a contribution to The Vaccine Fund.
7. Under ``Development Assistance'', no funds may be made
available for any activity which is in contravention to the
Convention on International Trade in Endangered Species of
Flora and Fauna (CITES); in addition, not to exceed $25,000, in
addition to funds otherwise available for such purposes, may be
used to monitor and provide oversight of programs for displaced
and orphaned children and victims of war; and a reference to
section 131 of the Foreign Assistance Act is inserted.
8. Under ``International Disaster Assistance'', funds are
made available for relief, rehabilitation and reconstruction
assistance.
9. Under ``Transition Initiatives'' authority is provided
to develop, strengthen, or preserve democratic institutions and
processes, revitalize basic infrastructure, and foster the
peaceful resolution of conflict; in addition, the account
requires a report at least 5 days prior to beginning a program
of assistance.
10. Under ``Development Credit Authority'', authority is
provided to guarantee up to 70 percent of the principal amount
of any loans notwithstanding existing law; in addition, a
separate account ``Micro and Small Enterprise Development
Program Account'' is deleted.
11. Under ``Economic Support Fund'', funds are available as
cash grants to Israel and Egypt. Funds for Israel are made
available within 30 days of enactment or by October 31, 2001,
whichever is later. In addition, the cash grant to Egypt is
provided with the understanding that significant economic
reforms will be undertaken, and the cash grant to Israel is
provided with direction to the President that he ensure that
the level of assistance does not cause an adverse impact on the
level of non-military exports from the United States to such
country and that Israel enter into a side letter agreement
equivalent to 1999.
12. Under ``Debt Restructuring'', funds are authorized for
purposes consistent with existing law, except that funds
appropriated for concessional debt relief are authorized for
``IDA-only'' countries; in addition, funds may be paid to the
``Heavily Indebted Poor Countries Trust Fund'' for the U.S.
share of repayment of debt owed by Bolivia and Mozambique; in
addition, any international financial institution in receipt of
such U.S. contributions is required to notify the Secretary of
the Treasury that no new loans or credits will be extended to
such member country for a period of up to 24 months; in
addition, the Secretary of the Treasury is required to provide
to the Committees on Appropriations full documentation relating
to commitments by such countries to redirect resources to
poverty alleviation or economic growth programs; and in
addition, any limitation of subsection (e) of section 411 of
the Agricultural Trade Development and Assistance Act of 1954
shall not apply to funds appropriated under this heading.
13. In title II, funds are appropriated for the
administrative costs of the Development Credit Authority, and
such funds may be transferred to the operating expenses account
of the Agency for International Development.
14. Under ``Assistance for Eastern Europe and the Baltic
States'', funds are made subject to section 529 of this Act.
15. Under ``International Fund for Ireland'', $25,000,000
is provided, which shall be expended at the minimum rate
necessary to make timely payment for projects and activities.
16. Under ``Assistance to Eastern Europe and the Baltic
States'', funds are provided notwithstanding any other
provision of law for economic assistance; funds are made
available as if they were considered economic assistance under
the Foreign Assistance Act; funds for Bosnia are subject to
certain conditions. Funds available for an Enterprise Fund are
authorized to be deposited in interest-bearing accounts, and
shall be expended at the minimum rate necessary to make timely
payments for projects and activities; in addition, assistance
for Kosovo is proposed to be limited to 15% of the total
pledges made by all donors as of March 31, 2002; in addition,
notwithstanding certain provisions of law, local currencies
generated by, or converted from, funds appropriated by this Act
and by previous appropriations Acts for Bosnia may be made
available for purposes of the Foreign Assistance Act of 1961
and the Support for East European Democracy (SEED) Act of 1989.
17. Under ``Assistance for the Independent States of the
Former Soviet Union'', the Committee has included a limitation
on the amount of assistance that may be made available for any
one country in the region; it has also retained language
concerning cooperation between Russia and Iran; in addition,
exceptions are made to the application of section 907 of the
FREEDOM Support Act; funds for the Government of Russia are
subject to certain limitations; and certain authorities are
granted for the use of funds appropriated for Enterprise Funds
that were carried in the fiscal year 2001 Act; in addition, no
funds are available for the Government of the Russian
Federation if the Secretary of State cannot certify that they
are in compliance with certain specified conditions.
18. Under ``International Narcotics Control and Law
Enforcement'', anti-crime programs are subject to notification;
in addition, a new account is created using the authorities of
section 481 of the Foreign Assistance Act entitled ``Andean
Counterdrug Initiative'', for which funds are appropriated
solely to support counterdrug activities in the Andean region
of South America and which are available notwithstanding
section 3204(b)(1)(B) of Public Law 106-246 and notwithstanding
section 482(b) of the Foreign Assistance Act of 1961; in
addition, in both accounts limitations of $16,600,000 and
$14,240,000, respectively, are placed on administrative
expenses.
19. Funding is provided for ``Migration and Refugee
Assistance'', and a limitation of $15,000,000 is provided for
administrative expenses, and a contribution to the headquarters
expenses of the International Committee of the Red Cross is
made contingent on Magen David Adom of Israel being given the
opportunity to participate in the activities of the
International Red Cross and Red Crescent Movement.
20. Under ``United States Emergency Refugee and Migration
Assistance Fund'', funds are provided notwithstanding the
limitations contained in section 2(c)(2) of the Migration and
Refugee Assistance Act of 1962.
21. Under ``Nonproliferation, Anti-terrorism, Demining, and
Related Programs'', funds are made available to countries other
than the Independent States of the former Soviet Union and
international organizations when it is in the national security
interest of the United States; funds are made available
notwithstanding any other provision of law; and the use of
funds is made subject to consultations with the Committees on
Appropriations; funds are authorized to be made available for
the IAEA, KEDO, and the CTBT Preparatory Commission, and funds
are authorized for IAEA only to the extent Israel is not being
denied its right to participate in the activities of that
Agency.
22. Under ``Debt Restructuring'', funds are available for
the cost of selling, reducing, or canceling debt owed to the
United States, for modifying concessional debt agreements with
least developed countries.
23. Under ``International Military Education and
Training'', the IMET for Indonesia and Guatemala shall be only
for expanded military education and training and funds for
Indonesia and Guatemala are subject to notification.
24. Under ``Foreign Military Financing Program'', the
Committee has provided that not less than $535,000,000 in FMF
grants should be available for the procurement in Israel of
defense articles and defense services.
25. Under ``Foreign Military Financing Program'', funds
estimated to be outlayed for Egypt in fiscal year 2002, and
funds appropriated for Israel, shall be disbursed within 30
days of enactment or by October 31, 2001, whichever is later;
in addition, funds are nonrepayable notwithstanding section 23
of the Arms Export Control Act; in addition, certain
authorities that were contained in the fiscal year 2001 Act are
continued in this Act.
26. Under ``Peacekeeping Operations'', funds are made
available subject to the regular notification procedures of the
Committees on Appropriations.
27. Under title IV, funds for a number of international
financial institutions are made available for contributions;
funds are made available for the United States share of the
paid-in portion of the increase in capital stock of certain
institutions; and limitations are placed on callable capital
subscriptions.
28. Under ``Contribution to the European Bank for
Reconstruction and Development'', the Committee has provided
$35,778,717 for the purchase of stock during fiscal year 2001
and placed a limit on callable capital.
29. Under ``Contribution to the International Development
Association'', the Secretary of the Treasury is directed to
seek an agreement that future assistance to member countries
participating in debt reduction through HIPC shall, to the
extent allowed by IOA policy and resources, be on a grant
basis.
30. Under ``International Organizations and Programs'', the
Committee has prohibited and conditioned the funding of certain
organizations and programs.
31. Under ``General Provisions'':
Sec. 502, ``Private and Voluntary Organizations'' is a new
general provision that repeats language previously carried
under that heading in title II; the language prohibits funds
for any United States private and voluntary organization,
except any cooperative development organization, which obtains
less than 20 percent of its total annual funding for
international activities from sources other than the United
States government, but allows the Administrator of AID to waive
this prohibition on a case-by-case basis after taking into
account various factors; it also specifies that funds
appropriated under title II should be made available to private
and voluntary organizations at a level at least equivalent to
the fiscal year 1995 level.
Sec. 505, ``Limitation on Representational Allowances'' is
modified by limiting representation expenses associated with
funds made available under ``Foreign Military Financing
Program'' to $150,000.
Sec. 508, ``Military Coups'' is modified to specify that
resumption of assistance to a country that was previously
suspended as the result of an elected head of government being
deposed by decree or military coup may occur if the President
determines that a democratically elected government has taken
office or substantial progress has been made towards the
holding of elections.
Sec. 511, ``Availability of Funds'' is modified to add
funds appropriated to carry out section 23 of the Arms Export
Control Act to the list of funds that may remain available
until for an extended period of time if obligated before the
expiration of their periods of availability, and to limit the
extended availability of funds obligated prior to the
expiration of their availability to four years.
Sec. 512, ``Limitation on Assistance to Countries in
Default'', is modified to allow for a waiver of the provisions
of this section if the President determines, following
consultations with the Committees on Appropriations, that
assistance to a country otherwise prohibited from receiving
funds is in the national interest of the United States.
Sec. 515, ``Notification Requirements'' is modified by
changing the name of the account ``Child Survival and Disease
Programs Fund'' to ``Child Survival and Health Programs Fund''
consistent with the modification to the name of the account
made in title II.
Sec. 524, ``Notification on Excess Defense Equipment'' is
modified to limit the notifications of excess defense articles
to those that are significant military equipment or had an
original acquisition cost of $7,000,000 or more, of if the
recipient country is subject to notification elsewhere in this
Act.
Sec. 525, ``Authorization Requirement'' is modified to add
the Trade and Development Agency and the Peace Corps to the
list of accounts that are exempted from the waiver of the
authorization requirement.
Sec. 526, ``Democracy Programs'' is modified to allow up to
$3,000,000, rather than $2,000,000, for support of
nongovernmental organizations located outside China to support
activities which preserve cultural traditions and promote
sustainable development and environmental conservation in
Tibetan communities in that country.
Sec. 534, ``Special Authorities'' is modified to carry
language that had been carried in another provision to provide
that section 576 of the Foreign Operations, Export Financing,
and Related Programs Appropriations Act, 1997, as amended,
shall not apply to the provision of assistance from
international financial institutions to the Federal Republic of
Yugoslavia (the same language was carried in section 594 of the
fiscal year 2001 appropriations act); it is also modified to
provide that during fiscal year 2002, the President may use up
to $50,000,000 under the authority of section 451 of the
Foreign Assistance Act, notwithstanding the funding ceiling in
section 451(a).
Sec. 537, ``Eligibility for Assistance'' is modified to
prohibit the provisions of the section from applying to
assistance to the government of a country that violates section
116 of the Foreign Assistance Act of 1961.
Sec. 543, ``Nongovernmental Organizations--Documentation''
is modified by changing the title and language in the provision
from ``private voluntary'' to ``nongovernmental''.
Sec. 544, ``Prohibition on Assistance to Foreign
Governments that Export Lethal Military Equipment to Countries
Supporting International Terrorism'' is modified by updating a
reference to section 6(j) of the Export Administration Act.
Sec. 560, ``Cambodia'' is modified to exempt assistance for
basic education from the funding limitation of the section.
Sec. 562, ``Korean Peninsula Energy Development
Organization'' is modified by limiting funds for KEDO to
$95,000,000 and providing for certain certification and
reporting requirements.
Sec. 563, ``PLO Compliance Report'' is a new section.
Sec. 565, ``Iraq'' is modified by authorizing assistance
under the ``Economic Support Fund'' for programs benefiting the
Iraqi people and to support efforts to bring about political
transition in Iraq.
Sec. 568, ``Indonesia'' is modified to refer to Indonesian
Ministry of Defense or military personnel for the purposes of
applying this section to the possible provision of assistance
for Indonesia.
Sec. 572, ``Voluntary Separation Incentives'' amends
existing law to provide authority for an additional year for
the Agency for International Development to extend voluntary
separation incentives to certain employees.
Sec. 577, ``Abolition of the Inter-American Foundation'' is
modified to extend the authorities of this section for an
additional year.
Sec. 578, ``War Criminals'' is modified to provide that
none of the funds appropriated pursuant to this Act may be made
available, with the exception of humanitarian assistance and
assistance for democratization, to any country, entity, or
municipality whose competent authorities have failed to take
necessary and significant steps to apprehend and transfer to
the International Criminal Tribunal for the Former Yugoslavia
all persons publicly indicted by the Tribunal unless such
authorities are (1) cooperating with the Tribunal in specified
ways and (2) taking steps that are consistent with the Dayton
Accords; in addition, a waiver provision is included to allow
assistance if it is in the national interest of the United
States.
Sec. 581, ``Heavily Indebted Poor Countries Trust Fund
Authorization'' is a new provision that amends section
801(b)(1) of the Foreign Operations, Export Financing, and
Related Programs Appropriations Act, 2001, to increase the
authorization level of the aforementioned trust fund from
$435,000,000 to $600,000,000, consistent with the funding
recommendation in title II of this Act.
Sec. 582, ``Funding for Serbia'' is similar to section 594
of the fiscal year 2001 appropriations act, except that it does
not specify a funding ceiling for assistance for Serbia and
does not contain subsection (e), which dealt with transition
issues related to state liabilities, assets, and property.
Sec. 583, ``Improving Global Health Through Safe
Injections'' is a new general provision that directs the Agency
for International Development to develop and implement
effective strategies to improve injection safety in its health
programs, and to report to the Congress not later than March
31, 2002, on its efforts in this regard.
Sec. 584, ``El Salvador Reconstruction'' is a new general
provision that provides that not less than $100,000,000 shall
be made available during fiscal year 2002 for rehabilitation
and reconstruction assistance for El Salvador, of which not
less than $65,000,000 shall be derived from funds appropriated
in this Act and not less than $35,000,000 shall be derived from
funds appropriated for fiscal year 1999 and prior years, from
certain specified accounts.
Appropriations Not Authorized by Law
Pursuant to clause 3(f)(1) of rule XIII of the Rules of the
House of Representatives, the following table lists the
appropriations in the accompanying bill which, in whole or in
part, are not authorized by law:
----------------------------------------------------------------------------------------------------------------
Appropriations in
Last year Authorization last year of Appropriations in
authorized level authorization this bill
----------------------------------------------------------------------------------------------------------------
Export-Import Bank.............. 2001.............. Such sums as may $865,000,000...... $753,323,000
be necessary.
Export-Import Bank 2001.............. Such sums as may $62,000,000....... $63,000,000
administrative expenses. be necessary.
Child Survival and Health Population (1987); Population Population $1,387,000,000
Programs Fund (See note below). Health and ($290,000,000); ($234,625,000); (includes
Disease Health and Health and $425,000,000 for
Prevention Disease Disease population, of
(1987); Child Prevention Prevention which
Survival Fund ($180,000,000); ($166,762,500); $358,000,000 in
(1987); HIV/AIDS Child Survival Child Survival this account;
(2002). Fund Fund funding for other
($75,000,000); ($75,000,000); programs, other
HIV/AIDS HIV/AIDS than HIV/AIDS,
($300,000,000). ($474,000,000 in difficult to
fy2002 determine due to
recommendation, changing
of which definitions of
$434,000,000 in programs since
this account). last authorized)
Development Assistance (See note Agriculture Agriculture Agriculture $1,098,000,000
below). (1987); Education ($760,000,000); ($639,613,000); (includes
(1987); Energy Education Education $150,000,000 for
and selected ($180,000,000); ($155,000,000); basic education,
development Energy and Energy and of which
activities (1987). selected selected $135,000,000 in
development development this account;
activities activities other programs
($207,000,000). ($149,990,000). difficult to
determine due to
changing
definitions of
programs since
last authorized)
International Disaster 1987.............. $25,000,000....... $70,000,000....... $200,000,000
Assistance.
Transition initiatives.......... None (same .................. .................. $40,000,000
authorities as
international
disaster
assistance).
Development credit authority.... None.............. .................. .................. ($12,500,000)
Development credit authority None.............. .................. .................. $7,500,000
administrative expenses.
Payment to the Foreign Service None; mandatory .................. .................. $44,880,000
Retirement and Disability Fund. item.
Operating expenses of the United 1987.............. $387,000,000...... $340,600,000...... $549,000,000
States Agency for International
Development.
Operating Expenses of the United 1987.............. $21,750,000....... $21,000,000....... $30,000,000
States Agency for International
Development Inspector General.
Economic Support Fund........... 1987.............. $3,800,000,000.... $3,555,000,000.... $2,199,000,000
International Fund for Ireland.. 1988.............. $35,000,000....... $35,000,000....... $25,000,000
Assistance for Eastern Europe None.............. .................. .................. $600,000,000
and the Baltic States (See note
below).
Assistance for the Independent 1993.............. $410,000,000...... $417,000,000...... $768,000,000
States of the Former Soviet
Union.
Inter-American Foundation....... 1987.............. $11,969,000....... $11,800,000....... $12,000,000
African Development Foundation.. 1987.............. $3,872,000........ $6,500,000........ $16,042,000
International Narcotics Control 1994.............. $171,500,000...... $100,000,000...... $217,000,000
and Law Enforcement.
Andean Counterdrug Initiative... None.............. .................. .................. $676,000,000
Migration and Refugee Assistance 2001.............. $750,000,000...... $700,000,000...... $715,000,000
U.S. Emergency Refugee and 1962.............. Such amounts as N/A............... $15,000,000
Migration Assistance Fund (See may be necessary.
note below).
Nonproliferation, Anti- None.............. .................. .................. $311,000,000
terrorism, demining and related
programs (See note below).
International Affairs Technical 1999.............. $5,000,000........ $1,500,000........ $6,000,000
Assistance.
Debt restructuring.............. 2001.............. $435,000,000...... $448,000,000 $224,000,000
(included up to (Note: section
$435,000,000 for 581 includes
Heavily Indebted additional
Poor Countries authorization for
(HIPC) debt HIPC debt relief,
relief; consistent with
additional sums appropriations
for unauthorized recommendation
bilateral debt for this account)
relief).
Peacekeeping operations......... 1999.............. $83,000,000....... $76,500,000....... $135,000,000
Asian Development Fund.......... 2001.............. $400,000,000 over $72,000,000....... $103,017,000
four years
(beginning in
fy1998).
International Organizations and 2001.............. Such sums as may $186,000,000...... $196,000,000
Programs. be necessary.
----------------------------------------------------------------------------------------------------------------
Note. Programs recommended herein under ``Child Survival and Health Programs Fund'' and ``Development
Assistance'' were last authorized under a different account structure than that recommended in this bill; the
account structure included a number of functional accounts, as described above.
Note. Programs recommended herein under ``Support for Eastern Europe and the Baltic States'' were last
authorized in the Support for East European Democracy (SEED) Act of 1989; however, these funds were authorized
for discrete programs and not for the account as a whole. In fiscal year 1991, the first general
appropriations act after enactment of the SEED Act included $369,675,000 for this account.
Note. Funds for the United States Emergency Refugee and Migration Assistance Program (ERMA) are authorized in
such amounts as may be necessary; however, appropriations which would result in a balance in the fund of more
than $100,000,000 are prohibited (22 U.S.C. 2601(c)) absent a waiver of this provision of law.
Note. Programs recommended herein under ``Nonproliferation, Anti-terrorism, Demining, and Related Programs''
include some major programs for which authorizations of appropriations were provided for fiscal year 2002;
these programs include $73,000,000 authorized for anti-terrorism assistance and $142,000,000 authorized for
nonproliferation activities. In addition, some programs now in this account were previously in accounts which
had authorizations of appropriations in prior years.
Comparison With Budget Resolution
Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives requires an explanation of compliance with
section 308(a)(1)(A) of the Congressional Budget and
Impoundment Control Act of 1974 (Public Law 93-344), as
amended, which requires that the report accompanying a bill
providing new budget authority contain a statement detailing
how the authority compares with the reports submitted under
section 302 of the Act for the most recently agreed to
concurrent resolution on the budget for the fiscal year from
the Committee's section 302(a) allocation.
[In millions of dollars]
----------------------------------------------------------------------------------------------------------------
302(b) allocation-- This bill--
---------------------------------------------------
Budget Budget
authority Outlays authority Outlays
----------------------------------------------------------------------------------------------------------------
Discretionary............................................... 15,168 15,099 15,167 15,089
Mandatory................................................... 45 45 45 45
----------------------------------------------------------------------------------------------------------------
NOTE.--The outlays in this bill are technically in excess of the subcommittee section 302(b) suballocation.
However, prior to floor consideration, the Committee intends to file a revised 302(b) suballocation that will
eliminate the excess.
Five-Year Outlay Projections
In compliance with section 308(a)(1)(B) of the
Congressional Budget and Impoundment Control Act of 1974
(Public Law 93-344), as amended, the following table contains
five-year projections associated with the budget authority
provided in the accompanying bill:
Fiscal year 2002...................................... 5,563
Fiscal year 2003...................................... 4,838
Fiscal year 2004...................................... 2,481
Fiscal year 2005...................................... 980
Fiscal year 2006...................................... 1,137
Statement of General Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the following is a statement of
general performance goals and objectives for which this measure
authorizes funding:
The Committee on Appropriations considers program
performance, including a program's success in developing and
attaining outcome-related goals and objectives, in developing
funding recommendations.
Assistance to State and Local Governments
In accordance with section 308(a)(1)(C) of the
Congressional Budget and Impoundment Control Act of 1974
(Public Law 93-344), as amended, the financing assistance to
State and local governments is as follows:
The amounts recommended in the accompanying bill contain no
budget authority or budget outlays for State or local
governments.
Compliance With Rule XIII, Cl. 3(e) (Ramseyer Rule)
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS
APPROPRIATIONS ACT, 1996
* * * * * * *
TITLE IV--MULTILATERAL ECONOMIC ASSISTANCE
* * * * * * *
international organizations and programs
For necessary expenses to carry out the provisions of section
301 of the Foreign Assistance Act of 1961, and of section 2 of
the United Nations Environment Program Participation Act of
1973, $285,000,000: Provided, That none of the funds
appropriated under this heading shall be made available for the
United Nations Fund for Science and Technology: Provided
further, That funds appropriated under this heading may be made
available for the International Atomic Energy Agency only if
the Secretary of State determines (and so reports to the
Congress) that Israel is not being denied its right to
participate in the activities of that Agency: Provided further,
That none of the funds appropriated under this heading that are
made available to the United Nations Population Fund (UNFPA)
shall be made available for activities in the People's Republic
of China: Provided further, That not more than $30,000,000 of
the funds appropriated under this heading may be made available
to the UNFPA: Provided further, That not more than one-half of
this amount may be provided to UNFPA before March 1, 1996, and
that no later than February 15, 1996, the Secretary of State
shall submit a report to the Committees on Appropriations
indicating the amount UNFPA is budgeting for the People's
Republic of China in 1996: Provided further, That any amount
UNFPA plans to spend in the People's Republic of China in 1996
above $7,000,000, shall be deducted from the amount of funds
provided to UNFPA after March 1, 1996 pursuant to the previous
provisos: Provided further, That with respect to any funds
appropriated under this heading that are made available to
UNFPA, UNFPA shall be required to maintain such funds in a
separate account and not commingle them with any other funds:
Provided further, That funds may be made available to the
Korean Peninsula Energy Development Organization (KEDO) for
administrative expenses and heavy fuel oil costs associated
with the Agreed Framework: Provided further, That no funds may
be provided for KEDO for funding for administrative expenses
and heavy fuel oil costs beyond the total amount included for
KEDO in the fiscal year 1996 congressional presentation:
Provided further, That no funds may be made available under
this Act to KEDO unless the President determines and certifies
in writing to the Committees on Appropriations that (a) in
accordance with section 1 of the Agreed Framework, KEDO has
designated a Republic of Korea company, corporation or entity
for the purpose of negotiating a prime contract to carry out
construction of the light water reactors provided for in the
Agreed Framework; and (b) the Democratic People's Republic of
Korea is maintaining the freeze on its nuclear facilities as
required in the Agreed Framework; and (c) the United States is
taking steps to assure that progress is made on (1) the North-
South dialogue, including efforts to reduce barriers to trade
and investment, such as removing restrictions on travel,
telecommunications services and financial transactions; and (2)
implementation of the January 1, 1992, Joint Declaration on the
Denuclearization of the Korean Peninsula[: Provided further,
That a report on the specific efforts with regard to
subsections (a), (b) and (c) of the preceding proviso shall be
submitted by the President to the Committees on Appropriations
six months after the date of enactment of this Act, and every
six months thereafter].
* * * * * * *
----------
FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS
APPROPRIATIONS ACT, 2000
* * * * * * *
TITLE V--GENERAL PROVISIONS
* * * * * * *
Voluntary Separation Incentives for Employees of the United States
Agency for International Development
Sec. 579. (a) * * *
* * * * * * *
(c) Authority To Provide Voluntary Separation Incentive
Payments.--
(1) * * *
(2) Amount and treatment of payments.--A voluntary
separation incentive payment under this section--
(A) * * *
* * * * * * *
(D) may not be made except in the case of any
employee who voluntarily separates (whether by
retirement or resignation) on or before
December 31, [2001] 2002;
* * * * * * *
abolition of the Inter-American Foundation
Sec. 586. (a) * * *
(b) Abolition of Inter-American Foundation.--During fiscal
[years 2000 and 2001] years 2000, 2001, and 2002, the President
is authorized to abolish the Inter-American Foundation. The
provisions of this section shall only be effective upon the
effective date of the abolition of the Inter-American
Foundation.
* * * * * * *
----------
SECTION 801 OF THE FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED
PROGRAMS APPROPRIATIONS ACT, 2001
SEC. 801. DEBT RELIEF UNDER THE HEAVILY INDEBTED POOR COUNTRIES (HIPC)
INITIATIVE.
(a) * * *
(b) Contributions to HIPC Trust Fund.--
(1) Authorization of appropriations for
contributions.--There is authorized to be appropriated
for the period beginning October 1, 2000, and ending
September 30, 2003, [$435,000,000] $600,000,000 for
purposes of United States contributions to the Heavily
Indebted Poor Countries (HIPC) Trust Fund administered
by the Bank.
* * * * * * *
Full Committee Votes
Pursuant to the provisions of clause 3(b) of rule XIII of
the House of Representatives, the results of each rollcall vote
on an amendment or on the motion to report, together with the
names of those voting for and those voting against, are printed
below:
Rollcall No. 1
Date: July 10, 2001.
Measure: Foreign Operations, Export Financing, and Related
Programs Appropriations Bill, FY 2002.
Motion By: Ms. Pelosi.
Description of Motion: To reduce the amounts provided for
the Andean Counterdrug Initiative by $100,000,000 and to limit
military aid to Colombia to a level of $65,000,000; and to
increase the amounts provided to the Child Survival and Disease
Programs Account by $100,000,000 of which $70,000,000 is for
other infectious diseases and $30,000,000 is for child survival
and maternal health.
Results: Rejected 22 yeas to 39 nays.
Members Voting Yea Members Voting Nay
Mr. Clyburn Mr. Aderholt
Ms. DeLauro Mr. Bonilla
Mr. Edwards Mr. Boyd
Mr. Fattah Mr. Callahan
Mr. Hinchey Mr. Cramer
Mr. Hoyer Mr. Cunningham
Mr. Jackson Mr. DeLay
Ms. Kaptur Mr. Doolittle
Mr. Kilpatrick Mr. Emerson
Mrs. Lowey Mr. Farr
Mrs. Meek Mr. Frelinghuysen
Mr. Moran Mr. Goode
Mr. Obey Ms. Granger
Mr. Olver Mr. Hobson
Mr. Pastor Mr. Istook
Ms. Pelosi Mr. Kennedy
Mr. Price Mr. Kingston
Ms. Roybal-Allard Mr. Knollenberg
Mr. Sabo Mr. Kolbe
Mr. Serrano Mr. LaHood
Mr. Visclosky Mr. Latham
Mr. Wicker Mr. Miller
Mr. Nethercutt
Mr. Northup
Mr. Peterson
Mr. Regula
Mr. Rogers
Mr. Rothman
Mr. Sherwood
Mr. Skeen
Mr. Sununu
Mr. Sweeney
Mr. Taylor
Mr. Tiahrt
Mr. Vitter
Mr. Walsh
Mr. Wamp
Mr. Wolf
Mr. Young
Full Committee Votes
Pursuant to the provisions of clause 3(b) of rule XIII of
the House of Representatives, the results of each rollcall vote
on an amendment or on the motion to report, together with the
names of those voting for and those voting against, are printed
below:
Rollcall No. 2
Date: July 10, 2001.
Measure: Foreign Operations, Export Financing, and Related
Programs Appropriations Bill, FY 2002.
Motion By: Mr. Obey.
Description of Motion: To strike all funds provided for the
Andean Counterdrug Initiative and to provide $676,000,000 for
Substance Abuse and Mental Health Services at the Department of
Health and Human Services.
Results: Rejected 18 yeas to 43 nays.
Members Voting Yea Members Voting Nay
Mr. Clyburn Mr. Aderholt
Mr. Fattah Mr. Bonilla
Mr. Hinchey Mr. Boyd
Mr. Hoyer Mr. Callahan
Mr. Jackson Mr. Cramer
Ms. Kaptur Mr. Cunningham
Mr. Kilpatrick Ms. DeLauro
Mrs. Lowey Ms. DeLay
Mrs. Meek Mr. Doolittle
Mr. Obey Mr. Edwards
Mr. Olver Mrs. Emerson
Mr. Pastor Mr. Farr
Ms. Pelosi Mr. Frelinghuyen
Ms. Roybal-Allard Mr. Goode
Mr. Sabo Ms. Granger
Mr. Serrano Mr. Hobson
Mr. Visclosky Mr. Istook
Mr. Wicker Mr. Kennedy
Mr. Kingston
Mr. Knollenberg
Mr. Kolbe
Mr. LaHood
Mr. Latham
Mr. Miller
Mr. Moran
Mr. Nethercutt
Mrs. Northup
Mr. Peterson
Mr. Price
Mr. Regula
Mr. Rogers
Mr. Rothman
Mr. Sherwood
Mr. Skeen
Mr. Sununu
Mr. Sweeney
Mr. Taylor
Mr. Tiahrt
Mr. Vitter
Mr. Walsh
Mr. Wamp
Mr. Wolf
Mr. Young
ADDITIONAL VIEWS
In the recent past the initial 302(b) allocation for the
Foreign Operations, Export Financing and Related Programs
appropriations bill has been significantly below the
Administration's request. Fortunately that pattern was broken
this year with an allocation at the request level. This enabled
the Committee to produce a bipartisan bill which incorporates
many of the initiatives important to subcommittee members from
both parties, and which funds most programs at or above the
Administration's request level. While funding for some programs
is still below adequate levels, the bill as a whole does give
us the ability to respond to and confront ongoing development
and security challenges around the world. In particular, the
bill has increased significantly the amounts for child
survival, maternal health, HIV/AIDS, basic education and other
infectious diseases.
Of fundamental disagreement, however, are the policies
imposed by the President on family planning programs. The bill
provides $425,000,000 for family planning programs, which is at
the request level, but 29% below the FY 1995 level of
$541,600,000. The bill is silent regarding the Mexico City
policy, which was imposed by executive order in January of
2001. This policy violates universal standards of medical
ethics, forcing doctors to withhold critical health information
from their clients. It also requires overseas NGOs to forfeit
their right to free speech as a condition of receiving United
States family planning assistance. Similar requirements would
be unconstitutional if applied to United States-based
organizations, and it is disingenuous to promulgate them
abroad. I am disappointed that language designed to repeal the
Mexico City policy was not included in the bill.
Another area of concern is the continued imbalance in the
implementation of Plan Colombia. During the debate on the
initial funding of Plan Colombia last year, members were
assured that the ``push into southern Colombia'' would include
economic and alternative development programs in conjunction
with the military assistance and training and aerial
fumigation. There were also assurances that the bulk of funding
for ``Plan Colombia'' would come in the form of economic
assistance and that our European allies would participate.
Neither of these assurances has come to pass. A massive
fumigation campaign commenced last December in southern
Colombia before any alternative development programs were in
place. By March, 2001, not one grain of rice, nor one seed, had
been delivered to communities that had agreed to voluntary
eradication. As of today, fully a year after funds were made
available, only two of the 29 communities that have signed
alternative development pacts have received any assistance.
Meanwhile, military training and the provision of equipment
have proceeded rapidly, and all three of the counter-narcotics
battalions have been trained. The impact of our ``push into
southern Colombia'' thus far has been further disruption and
disillusionment of the population on the prospects for an end
to the conflict. Aerial fumigation should cease until programs
designed to give communities the opportunity to voluntarily
eradicate coca are operating effectively.
Unfortunately, the billions in additional economic
assistance for Colombia have not materialized. Our European
allies have chosen not to participate in a significant way in
Plan Colombia. It is therefore time to slow the pace of the
military assistance while a workable economic assistance plan
is developed with the support of our allies and people in
Colombia most affected by the drug war.
With respect to the assistance to help El Salvador recover
from two devastating earthquakes, the bill does include a
designation of $100,000,000 from within existing and prior year
resources for recovery. However, this is far from adequate
given the fact that 175,000 homes were destroyed, leaving over
one million people homeless, and that over one-third of the
nation's schools were destroyed along with numerous hospitals,
roads and other infrastructure.
While the assistance designated in the bill is appreciated,
the Administration has disappointed many by refusing to submit
a request for additional resources to meet urgent needs.
Unfortunately, many of our allies followed our miserly lead at
the recent donor conference. The tragic result will be that El
Salvador will need to incur significant debt to finance its
recovery. This tragedy occurred just as the economy of that
country was showing signs of permanent recovery from the civil
war. Given the nature of our involvement in El Salvador's
internal affairs, not to mention the investment of over $6
billion in U.S. assistance, it is astonishing that the new
administration has not been more forthcoming.
Nita M. Lowey.
