![](media/image1.wmf){width="8.7in" height="11.0in"}

Table of Contents

Message From the Secretary [3](#message-from-the-secretary)

1.0 Executive Summary [5](#executive-summary)

2.0 Benefit to the American Public [6](#benefit-to-the-american-public)

3.0 Progress on the President's Management Agenda
[8](#progress-on-the-presidents-management-agenda)

4.0 Strategic Goal Executive Summaries
[11](#strategic-goal-executive-summaries)

Strategic Goal 1: Regional Stability
[12](#strategic-goal-1-regional-stability)

Strategic Goal 2: Weapons of Mass Destruction
[17](#strategic-goal-2-weapons-of-mass-destruction)

Strategic Goal 3: Countering Terrorism
[23](#strategic-goal-3-countering-terrorism)

Strategic Goal 4: Open Markets [25](#strategic-goal-4-open-markets)

Strategic Goal 5: U.S. Exports [28](#strategic-goal-5-u.s.-exports)

Strategic Goal 6: Global Economic Growth
[29](#strategic-goal-6-global-economic-growth)

Strategic Goal 7: Economic Development
[31](#strategic-goal-7-economic-development)

Strategic Goal 8: American Citizens
[33](#strategic-goal-8-american-citizens)

Strategic Goal 9: Travel & Migration
[36](#strategic-goal-9-travel-migration)

Strategic Goal 10: International Crime
[38](#strategic-goal-10-international-crime)

Strategic Goal 11: Countering Illegal Drugs
[41](#strategic-goal-11-countering-illegal-drugs)

Strategic Goal 12: Democracy & Human Rights
[44](#strategic-goal-12-democracy-human-rights)

Strategic Goal 13: Humanitarian Assistance
[49](#strategic-goal-13-humanitarian-assistance)

Strategic Goal 14: Environment [53](#strategic-goal-14-environment)

Strategic Goal 15: Population [57](#strategic-goal-15-population)

Strategic Goal 16: Health [59](#strategic-goal-16-health)

Strategic Goal 17: Mutual Understanding
[61](#strategic-goal-17-mutual-understanding)

Strategic Goal 18: Human Resources
[63](#strategic-goal-18-human-resources)

Strategic Goal 19: Information Resources
[67](#strategic-goal-19-information-resources)

Strategic Goal 20: Infrastructure and Operations
[69](#strategic-goal-20-infrastructure-and-operations)

5.0 Resources by Strategic Goal [74](#resources-by-strategic-goal)

Appendix A: Performance Measurement Methodology
[78](#appendix-a-performance-measurement-methodology)

#   {#section .unnumbered}

# Message From the Secretary 

![](media/image3.png){width="1.7145833333333333in" height="1.8in"}

These opening years of the 21^st^ Century present our country with great
opportunities to shape a world of growing freedom, prosperity and peace
-- a world that benefits the American people even as it brings new hope
to millions on every continent.

The terrorist attacks of September 11, in which some 3000 men and women
from 80 countries were murdered, reminded all of us that this age of
great promise also has its perils and that nations across the globe must
work together against them for the sake of all our citizens.

The Department of State has been proud to serve at the forefront of the
war on terrorism. Diplomatic tools have proved invaluable in helping
President Bush marshal and maintain the global anti-terrorism coalition.
Adroit U.S. diplomacy helped a liberated Afghanistan establish an
interim governing authority and an agreed path to a representative
government. American diplomacy has been a critical component of
humanitarian relief activities and a crucial catalyst for the
international reconstruction efforts for Afghanistan. Equally important,
U.S. diplomacy has been, and will continue to be, instrumental in
tightening the noose on terrorist organizations all around the world by
helping to cut off their financial lifelines, denying them support and
sanctuary and keeping weapons of mass destruction out of their hands.

While securing the support of the world against terrorism has been of
the highest priority, the Department of State has also helped the
President advance a far broader foreign policy agenda. We have fostered
human rights, democracy and free trade in our Hemisphere and around the
globe. We spearheaded the successful launch of new global trade talks
within the World Trade Organization. We have worked with our partners in
the Atlantic and Pacific to modernize our alliances. We have established
a new strategic framework with Russia and a constructive,
forward-looking relationship with China. We have transformed our
relationships with both India and Pakistan. We have worked to resolve
conflicts in other troubled parts of the world from South Asia to the
Balkans, central Africa, the Andes and the Middle East. And the
Department has been a leader in the international effort to stem the
HIV/AIDS pandemic.

In the years ahead, the anti-terrorism campaign will continue to place
unprecedented demands on our diplomatic personnel and resources. Yet,
even as we press forward against terrorism, the men and women of the
Department of State will continue to actively promote America's values
and interests across the full range of international issues, from good
governance to economic growth and sustainable development to
international stability.

We recognize that future success in our vital diplomatic mission demands
that the State Department meet a number of important institutional
challenges. Thanks to steadfast support from the President and broad
bipartisan backing from Congress, we already have made significant
strides in the key areas of hiring, technological modernization, embassy
construction and security. And we remain strongly committed to
implementing the initiatives in the President's Management Agenda.

I invite the American public's attention to our Performance Plan for
Fiscal Year 2003. The format has been changed from that of previous
years' plans in order to more clearly describe the State Department's
strategic goals and how we intend to reach them. We also have provided a
clearer set of performance indicators so taxpayers can better determine
how effectively we use the public funds given to us by Congress. We will
press ahead with determination in our efforts to link up smart strategic
planning with sound resource management.

Every day, the men and women of American diplomacy work in difficult and
often dangerous conditions to keep their fellow Americans safe and build
a democratic, prosperous, peaceful world where terrorism cannot thrive.
Like the fine Americans who serve in our military, the dedicated men and
women of the Department of State truly serve our nation on the
frontlines of freedom.

> Colin L. Powell
>
> S*ecretary of State*

# Executive Summary

The Department of State (the Department) is pleased to present its 2003
Performance Plan to the President, the Congress, and the American
public.[^1] This revised plan represents the Department's renewed focus
on sound strategic planning and effective measurement of performance. In
this document, the reader is presented with the following key sections:

-   **Benefit to the American Public:** This section attempts to clarify
    the value of the Department of State to the American public,
    outlining seven concrete areas where the daily work of the
    Department has a direct impact on the lives of the American people.

-   **President's Management Agenda:** This section presents a
    high-level overview of the Department's progress on the five
    cross-cutting initiatives outlined in the President's Management
    Agenda.

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-   **Strategic Goal Executive Summaries:** The bulk of this 2003
    Performance Plan contains concise summaries of each Department
    strategic goal.[^2] These summaries include an overview of the
    strategic goal as well as concrete program examples explaining how
    the Department actively pursues these goals. For each strategic
    goal, tangible performance goals (outcomes) are also described.
    Finally, key indicators for each performance goal are stated with
    trended performance from 1999 through 2001 and projected performance
    for 2002 and 2003.

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-   **Resources by Strategic Goal:** The final section depicts the
    Department's resources by each strategic goal. This categorization
    is included to begin to associate dollars and personnel utilized to
    achieve each strategic goal.

The 2003 Department Performance Plan can also be found on-line at
www.state.gov.

**[Work in Progress]{.underline}**

The Department's 2003 Performance Plan is a work in progress. In this
document, the Department has taken the first step of transforming long
and often opaque past Performance Plans and creating a concise,
readable, and transparent document that better communicates the
Department's performance story. With a more consolidated document, the
Department's next step is to focus on the quality of the projected
performance and the performance indicators used to measure these desired
outcomes.

As we strive to make this a valuable document for the American taxpayer,
we are removing performance indicators that are not tracked or do not
represent the Department's overall priorities. This process will
continue in the 2004 and 2005 Performance Plans, creating a set of
performance indicators the Department can utilize for each strategic
goal moving forward. The Department has already begun this progress
through increased feedback and training on such items as the development
and verification of performance indicators. Our goal is to create a
performance plan that communicates the Department's performance story
and is a tangible plan employees use to manage their work on behalf of
the American people.

# 2.0 Benefit to the American Public

+-----------------------------------------------------------------------+
| ######                                                                |
|                                                                       |
| ###### U.S. Department of State Mission Statement                     |
|                                                                       |
| *Create a more secure, prosperous and democratic world*               |
|                                                                       |
| *for the benefit of the American people.*                             |
+-----------------------------------------------------------------------+

The Department's Performance Plan clearly demonstrates that America's
foreign policy is not foreign to the interests of our citizens. The
Department exists to serve the American people, and achieve the foreign
policy goals of the nation. As a result, the international programs
described in this document have a direct impact on the United States,
its citizens, and the economy. Halting terrorism and the proliferation
of weapons of mass destruction is essential to our national security.
Building a strong world economy with open markets for American goods and
services is vital to our workers, and little can be more important to
our families than safeguarding their communities from the plague of
drugs and crime.

As outlined in Figure 1, the Department strives to provide seven
important benefits to the American public. These public benefits are the
Department's key product offerings, and the Department utilizes a
variety of tools, including diplomacy, capacity building, and in-depth
coordination, to deliver these products to the American people.

Diplomacy is an instrument of power and influence. An art more than a
science, the results of applying the tool of diplomacy are inherently
difficult to measure. For example, the U.S. often engages in diplomatic
efforts to prevent something from occurring, such as increased conflict.
However, if the conflict does not arise, it is difficult to prove that
the Department's diplomatic efforts were the direct cause or one of
numerous influencing external factors. The Department also utilizes the
tool of capacity building assistance to actively encourage results that
support U.S. policy. For example, the Department currently funds an
Anti-Terrorism Assistance Training Program. This program has provided
training in a variety of anti-terrorism and security methods for foreign
law enforcement and security personnel. Capacity building assists in
building environments abroad that benefit both American and
international citizens.

Many of these public benefits are broad and complex, ultimately
requiring in-depth coordination with numerous U.S. Departments,
agencies, bilateral, and multilateral organizations. The Department
works collaboratively with such organizations as the U.S. Departments of
Defense, Treasury, and Justice assisting these organizations to
successfully execute their own overseas activities. The Department also
works with other foreign affairs agencies, such as the U.S. Agency for
International Development (USAID), the Overseas Private Investment
Corporation (OPIC), the Peace Corps, and multilateral organizations like
the United Nations to ensure a coordinated response and approach to U.S.
foreign policy.

Although the Department does not produce these benefits alone, its work
is at the core of any successful international relationship. Throughout
the 2003 Performance Plan, the Department strives to demonstrate how
projected performance based on these diplomatic efforts is directly
focused on achieving concrete benefits for the American public.

# 

#   {#section-3 .unnumbered}

# 3.0 Progress on the President's Management Agenda

+-----------------------------------------------------------------------+
| > ***"**As Secretary of State, I wear two hats \-- one as CEO of the  |
| > Department, the other as the President\'s principal foreign policy  |
| > advisor. And being successful in both roles is important because we |
| > must be properly organized and equipped and manned to conduct       |
| > America\'s foreign policy, as well as formulate good policy."*      |
| >                                                                     |
| > ***Secretary of State Colin L. Powell***                            |
| >                                                                     |
| > ***April 2001***                                                    |
+-----------------------------------------------------------------------+

In August 2001, President Bush outlined the President's Management
Agenda (PMA), which focuses on five initiatives to improve government
management. The focus of these initiatives is "to address the most
apparent deficiencies where the opportunity to improve performance is
the greatest." The Secretary and the entire Department leadership team
have always maintained that better management is a critical element in
the Department's overall effectiveness and they are committed to a
successful implementation of these initiatives.

The Department has made substantial progress on each of the five PMA
elements. As of July 20, 2002, the Department achieved two "green" and
three "yellow" scores based on the Department's "progress of
implementation," according to the Office of Management and Budget (OMB).
The Department's overall current status, however, remains at "red" for
all five initiatives until OMB evaluates overall status again at the end
of 2002. The remainder of this section provides a brief overview of the
Department's overall PMA progress.

+-------+--------------------------------------------------------------+
|       | **Strategic Management of Human Capital**                    |
+-------+--------------------------------------------------------------+
| -     |                                                              |
| ***Ov |                                                              |
| ervie |                                                              |
| w:*** |                                                              |
|       |                                                              |
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| resid |                                                              |
| ent's |                                                              |
|       |                                                              |
| first |                                                              |
|       |                                                              |
| manag |                                                              |
| ement |                                                              |
|     r |                                                              |
| eform |                                                              |
|       |                                                              |
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| ative |                                                              |
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| uild, |                                                              |
|       |                                                              |
|    su |                                                              |
| stain |                                                              |
|       |                                                              |
|   and |                                                              |
|     e |                                                              |
| ffect |                                                              |
| ively |                                                              |
|     d |                                                              |
| eploy |                                                              |
|     a |                                                              |
|       |                                                              |
|   ski |                                                              |
| lled, |                                                              |
|       |                                                              |
|  know |                                                              |
| ledge |                                                              |
| able, |                                                              |
|       |                                                              |
|   div |                                                              |
| erse, |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
| high- |                                                              |
| perfo |                                                              |
| rming |                                                              |
|       |                                                              |
|  work |                                                              |
| force |                                                              |
|       |                                                              |
|  that |                                                              |
|       |                                                              |
|    is |                                                              |
|       |                                                              |
|    al |                                                              |
| igned |                                                              |
|       |                                                              |
|  with |                                                              |
|       |                                                              |
|    mi |                                                              |
| ssion |                                                              |
|     o |                                                              |
| bject |                                                              |
| ives. |                                                              |
|       |                                                              |
|  This |                                                              |
|       |                                                              |
|    is |                                                              |
|       |                                                              |
|   key |                                                              |
|       |                                                              |
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|     m |                                                              |
| aking |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
| gover |                                                              |
| nment |                                                              |
|       |                                                              |
|  "cit |                                                              |
| izen- |                                                              |
| cente |                                                              |
| red." |                                                              |
|       |                                                              |
|   The |                                                              |
|       |                                                              |
|  goal |                                                              |
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|    to |                                                              |
|       |                                                              |
|  have |                                                              |
|     a |                                                              |
|       |                                                              |
|  work |                                                              |
| force |                                                              |
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|  that |                                                              |
|       |                                                              |
|  will |                                                              |
|       |                                                              |
| adapt |                                                              |
|       |                                                              |
|    qu |                                                              |
| ickly |                                                              |
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|    in |                                                              |
|       |                                                              |
| size, |                                                              |
|       |                                                              |
|    co |                                                              |
| mposi |                                                              |
| tion, |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|    co |                                                              |
| mpete |                                                              |
| ncies |                                                              |
|       |                                                              |
|    to |                                                              |
|     a |                                                              |
| ccomm |                                                              |
| odate |                                                              |
|       |                                                              |
|    ch |                                                              |
| anges |                                                              |
|       |                                                              |
|    in |                                                              |
|       |                                                              |
|   mis |                                                              |
| sion, |                                                              |
|     t |                                                              |
| echno |                                                              |
| logy, |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
| labor |                                                              |
|       |                                                              |
|   mar |                                                              |
| kets. |                                                              |
+-------+--------------------------------------------------------------+
| -     |                                                              |
|   *** |                                                              |
| Depar |                                                              |
| tment |                                                              |
|       |                                                              |
|    Pr |                                                              |
| ogres |                                                              |
| s:*** |                                                              |
|       |                                                              |
|    Th |                                                              |
| rough |                                                              |
|       |                                                              |
|  sust |                                                              |
| ained |                                                              |
|       |                                                              |
| commi |                                                              |
| tment |                                                              |
|       |                                                              |
|    to |                                                              |
|       |                                                              |
| human |                                                              |
|       |                                                              |
|  reso |                                                              |
| urces |                                                              |
|       |                                                              |
|   pol |                                                              |
| icies |                                                              |
|       |                                                              |
|    by |                                                              |
|     s |                                                              |
| enior |                                                              |
|       |                                                              |
| Depar |                                                              |
| tment |                                                              |
|     l |                                                              |
| eader |                                                              |
| ship, |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
| Depar |                                                              |
| tment |                                                              |
|       |                                                              |
|   has |                                                              |
|       |                                                              |
|    su |                                                              |
| ccess |                                                              |
| fully |                                                              |
|     i |                                                              |
| mplem |                                                              |
| ented |                                                              |
|       |                                                              |
|  year |                                                              |
|       |                                                              |
|   one |                                                              |
|       |                                                              |
|    of |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
| Diplo |                                                              |
| matic |                                                              |
|       |                                                              |
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| iness |                                                              |
|       |                                                              |
| Initi |                                                              |
| ative |                                                              |
|       |                                                              |
|   des |                                                              |
| igned |                                                              |
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| nsure |                                                              |
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| creas |                                                              |
| ingly |                                                              |
|     c |                                                              |
| halle |                                                              |
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|       |                                                              |
|    fo |                                                              |
| reign |                                                              |
|       |                                                              |
|    po |                                                              |
| licy. |                                                              |
|       |                                                              |
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|       |                                                              |
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| ative |                                                              |
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|   has |                                                              |
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|  also |                                                              |
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| begun |                                                              |
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|    to |                                                              |
|       |                                                              |
|  make |                                                              |
|       |                                                              |
|   pro |                                                              |
| gress |                                                              |
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|    in |                                                              |
|       |                                                              |
|    st |                                                              |
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|     h |                                                              |
| iring |                                                              |
|       |                                                              |
| proce |                                                              |
| sses, |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|  thus |                                                              |
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|    in |                                                              |
|       |                                                              |
|    ge |                                                              |
| tting |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
| right |                                                              |
|     p |                                                              |
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|  into |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
| right |                                                              |
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|  jobs |                                                              |
|       |                                                              |
|    in |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
| right |                                                              |
|       |                                                              |
| timef |                                                              |
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|       |                                                              |
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|       |                                                              |
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| tment |                                                              |
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|  also |                                                              |
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|  made |                                                              |
|       |                                                              |
|    st |                                                              |
| rides |                                                              |
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|    in |                                                              |
|       |                                                              |
| devel |                                                              |
| oping |                                                              |
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|   the |                                                              |
|       |                                                              |
| final |                                                              |
|       |                                                              |
|  work |                                                              |
| force |                                                              |
|       |                                                              |
|   pla |                                                              |
| nning |                                                              |
|       |                                                              |
| tools |                                                              |
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|  that |                                                              |
|       |                                                              |
|  will |                                                              |
|       |                                                              |
|    pr |                                                              |
| ovide |                                                              |
|     a |                                                              |
|       |                                                              |
|   com |                                                              |
| prehe |                                                              |
| nsive |                                                              |
|       |                                                              |
|   app |                                                              |
| roach |                                                              |
|       |                                                              |
|    to |                                                              |
|     d |                                                              |
| eterm |                                                              |
| ining |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
|    op |                                                              |
| timal |                                                              |
|       |                                                              |
| size, |                                                              |
|     a |                                                              |
| lloca |                                                              |
| tion, |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|    or |                                                              |
| ganiz |                                                              |
| ation |                                                              |
|       |                                                              |
|    of |                                                              |
|       |                                                              |
|   our |                                                              |
|       |                                                              |
|   dom |                                                              |
| estic |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|   ove |                                                              |
| rseas |                                                              |
|     w |                                                              |
| orkfo |                                                              |
| rces. |                                                              |
|       |                                                              |
|    We |                                                              |
|       |                                                              |
|  have |                                                              |
|       |                                                              |
|    in |                                                              |
| corpo |                                                              |
| rated |                                                              |
|       |                                                              |
|  work |                                                              |
| force |                                                              |
|       |                                                              |
|   pla |                                                              |
| nning |                                                              |
|       |                                                              |
|  into |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
|    mi |                                                              |
| ssion |                                                              |
|       |                                                              |
|   and |                                                              |
|     b |                                                              |
| ureau |                                                              |
|       |                                                              |
| level |                                                              |
|       |                                                              |
|  stra |                                                              |
| tegic |                                                              |
|       |                                                              |
|   pla |                                                              |
| nning |                                                              |
|       |                                                              |
|   pro |                                                              |
| cess, |                                                              |
|       |                                                              |
| which |                                                              |
|     s |                                                              |
| hould |                                                              |
|     r |                                                              |
| esult |                                                              |
|       |                                                              |
|    in |                                                              |
|       |                                                              |
|   str |                                                              |
| icter |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|  more |                                                              |
|       |                                                              |
| forma |                                                              |
| lized |                                                              |
|       |                                                              |
|  just |                                                              |
| ifica |                                                              |
| tions |                                                              |
|       |                                                              |
|   for |                                                              |
|       |                                                              |
| addit |                                                              |
| ional |                                                              |
|       |                                                              |
|  staf |                                                              |
| fing. |                                                              |
|       |                                                              |
|   Fin |                                                              |
| ally, |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
| Depar |                                                              |
| tment |                                                              |
|       |                                                              |
|   has |                                                              |
|       |                                                              |
| begun |                                                              |
|       |                                                              |
|    to |                                                              |
|       |                                                              |
|  impl |                                                              |
| ement |                                                              |
|     a |                                                              |
|       |                                                              |
| leade |                                                              |
| rship |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
| manag |                                                              |
| ement |                                                              |
|       |                                                              |
| initi |                                                              |
| ative |                                                              |
|       |                                                              |
|  that |                                                              |
|       |                                                              |
|  will |                                                              |
|       |                                                              |
|  emph |                                                              |
| asize |                                                              |
|       |                                                              |
| those |                                                              |
|     s |                                                              |
| kills |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|  make |                                                              |
|       |                                                              |
|    ce |                                                              |
| rtain |                                                              |
|       |                                                              |
|   tra |                                                              |
| ining |                                                              |
|       |                                                              |
| manda |                                                              |
| tory. |                                                              |
+-------+--------------------------------------------------------------+
| -   * |                                                              |
| **Upc |                                                              |
| oming |                                                              |
|     A |                                                              |
| ction |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|  Pote |                                                              |
| ntial |                                                              |
|       |                                                              |
|  Chal |                                                              |
| lenge |                                                              |
| s:*** |                                                              |
|       |                                                              |
|   The |                                                              |
|       |                                                              |
| Depar |                                                              |
| tment |                                                              |
|       |                                                              |
|  will |                                                              |
|       |                                                              |
|   con |                                                              |
| tinue |                                                              |
|       |                                                              |
|    to |                                                              |
|       |                                                              |
|  impl |                                                              |
| ement |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
| Diplo |                                                              |
| matic |                                                              |
|       |                                                              |
|  Read |                                                              |
| iness |                                                              |
|     H |                                                              |
| iring |                                                              |
|       |                                                              |
| Initi |                                                              |
| ative |                                                              |
|       |                                                              |
|   and |                                                              |
|     e |                                                              |
| xpand |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
| leade |                                                              |
| rship |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
| manag |                                                              |
| ement |                                                              |
|       |                                                              |
|   tra |                                                              |
| ining |                                                              |
|     i |                                                              |
| nitia |                                                              |
| tive. |                                                              |
|       |                                                              |
| Compl |                                                              |
| etion |                                                              |
|       |                                                              |
|    of |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
|   Dom |                                                              |
| estic |                                                              |
|       |                                                              |
|   Sta |                                                              |
| ffing |                                                              |
|       |                                                              |
| Model |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
|   pil |                                                              |
| oting |                                                              |
|       |                                                              |
|    of |                                                              |
|     a |                                                              |
|       |                                                              |
| succe |                                                              |
| ssion |                                                              |
|       |                                                              |
|   pla |                                                              |
| nning |                                                              |
|       |                                                              |
| model |                                                              |
|       |                                                              |
|   for |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
| civil |                                                              |
|       |                                                              |
|    se |                                                              |
| rvice |                                                              |
|       |                                                              |
|  will |                                                              |
|       |                                                              |
| allow |                                                              |
|       |                                                              |
| manag |                                                              |
| ement |                                                              |
|       |                                                              |
|    to |                                                              |
|       |                                                              |
|  make |                                                              |
|       |                                                              |
|    be |                                                              |
| tter, |                                                              |
|       |                                                              |
|  more |                                                              |
|       |                                                              |
|   inf |                                                              |
| ormed |                                                              |
|       |                                                              |
|  deci |                                                              |
| sions |                                                              |
|       |                                                              |
| about |                                                              |
|       |                                                              |
|  work |                                                              |
| force |                                                              |
|       |                                                              |
|   req |                                                              |
| uirem |                                                              |
| ents. |                                                              |
|       |                                                              |
|   Fin |                                                              |
| ally, |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
| Depar |                                                              |
| tment |                                                              |
|       |                                                              |
|  will |                                                              |
|       |                                                              |
|    de |                                                              |
| velop |                                                              |
|     a |                                                              |
|       |                                                              |
| human |                                                              |
|       |                                                              |
|  reso |                                                              |
| urces |                                                              |
|       |                                                              |
| manag |                                                              |
| ement |                                                              |
|       |                                                              |
|  acco |                                                              |
| untab |                                                              |
| ility |                                                              |
|     s |                                                              |
| ystem |                                                              |
|       |                                                              |
|    to |                                                              |
|     e |                                                              |
| nsure |                                                              |
|       |                                                              |
| Depar |                                                              |
| tment |                                                              |
|       |                                                              |
| leade |                                                              |
| rship |                                                              |
|       |                                                              |
|   can |                                                              |
|       |                                                              |
|   eva |                                                              |
| luate |                                                              |
|       |                                                              |
|   our |                                                              |
|       |                                                              |
|  prog |                                                              |
| ress. |                                                              |
+-------+--------------------------------------------------------------+

+-------+--------------------------------------------------------------+
|       | **Competitive Sourcing**                                     |
+-------+--------------------------------------------------------------+
| -     |                                                              |
| ***Ov |                                                              |
| ervie |                                                              |
| w:*** |                                                              |
|       |                                                              |
|   The |                                                              |
|       |                                                              |
|  Bush |                                                              |
|       |                                                              |
|  Admi |                                                              |
| nistr |                                                              |
| ation |                                                              |
|       |                                                              |
|    is |                                                              |
|       |                                                              |
|  comm |                                                              |
| itted |                                                              |
|       |                                                              |
|    to |                                                              |
|       |                                                              |
|  achi |                                                              |
| eving |                                                              |
|       |                                                              |
|  effi |                                                              |
| cient |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|  effe |                                                              |
| ctive |                                                              |
|     c |                                                              |
| ompet |                                                              |
| ition |                                                              |
|       |                                                              |
|    be |                                                              |
| tween |                                                              |
|     p |                                                              |
| ublic |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|    pr |                                                              |
| ivate |                                                              |
|       |                                                              |
|   sou |                                                              |
| rces, |                                                              |
|     s |                                                              |
| impli |                                                              |
| fying |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|  impr |                                                              |
| oving |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
| proce |                                                              |
| dures |                                                              |
|       |                                                              |
|   for |                                                              |
|       |                                                              |
| evalu |                                                              |
| ating |                                                              |
|       |                                                              |
|   sou |                                                              |
| rces, |                                                              |
|       |                                                              |
|   and |                                                              |
|     b |                                                              |
| etter |                                                              |
|     p |                                                              |
| ublic |                                                              |
| izing |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
| activ |                                                              |
| ities |                                                              |
|       |                                                              |
|    su |                                                              |
| bject |                                                              |
|       |                                                              |
|    to |                                                              |
|       |                                                              |
|    co |                                                              |
| mpeti |                                                              |
| tion. |                                                              |
+-------+--------------------------------------------------------------+
| -     |                                                              |
|   *** |                                                              |
| Depar |                                                              |
| tment |                                                              |
|       |                                                              |
|    Pr |                                                              |
| ogres |                                                              |
| s:*** |                                                              |
|       |                                                              |
|   The |                                                              |
|       |                                                              |
| Depar |                                                              |
| tment |                                                              |
|       |                                                              |
|   has |                                                              |
|       |                                                              |
|  deve |                                                              |
| loped |                                                              |
|     a |                                                              |
|       |                                                              |
| final |                                                              |
|       |                                                              |
| manag |                                                              |
| ement |                                                              |
|       |                                                              |
|   and |                                                              |
|     c |                                                              |
| ompet |                                                              |
| ition |                                                              |
|       |                                                              |
|  plan |                                                              |
|       |                                                              |
|  outl |                                                              |
| ining |                                                              |
|       |                                                              |
|   the |                                                              |
|     t |                                                              |
| arget |                                                              |
|       |                                                              |
|    of |                                                              |
|       |                                                              |
|  comp |                                                              |
| eting |                                                              |
|       |                                                              |
|   11% |                                                              |
|       |                                                              |
|    to |                                                              |
|       |                                                              |
|   15% |                                                              |
|       |                                                              |
|    of |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
|  FAIR |                                                              |
|       |                                                              |
|   Act |                                                              |
|       |                                                              |
| inven |                                                              |
| tory. |                                                              |
|       |                                                              |
|   The |                                                              |
|       |                                                              |
| Depar |                                                              |
| tment |                                                              |
|       |                                                              |
|   has |                                                              |
|       |                                                              |
|  comm |                                                              |
| itted |                                                              |
|       |                                                              |
|   \$2 |                                                              |
|       |                                                              |
|    mi |                                                              |
| llion |                                                              |
|       |                                                              |
|    in |                                                              |
|       |                                                              |
|  2003 |                                                              |
|       |                                                              |
|    to |                                                              |
|       |                                                              |
|  fund |                                                              |
|       |                                                              |
|   the |                                                              |
|     i |                                                              |
| nitia |                                                              |
| tive. |                                                              |
+-------+--------------------------------------------------------------+
| -   * |                                                              |
| **Upc |                                                              |
| oming |                                                              |
|     A |                                                              |
| ction |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|  Pote |                                                              |
| ntial |                                                              |
|       |                                                              |
|  Chal |                                                              |
| lenge |                                                              |
| s:*** |                                                              |
|       |                                                              |
|   The |                                                              |
|       |                                                              |
| Depar |                                                              |
| tment |                                                              |
|       |                                                              |
|    is |                                                              |
|       |                                                              |
| proce |                                                              |
| eding |                                                              |
|       |                                                              |
|    to |                                                              |
|       |                                                              |
|  impl |                                                              |
| ement |                                                              |
|       |                                                              |
|   its |                                                              |
|     C |                                                              |
| ompet |                                                              |
| itive |                                                              |
|       |                                                              |
|   Sou |                                                              |
| rcing |                                                              |
|       |                                                              |
| Plan. |                                                              |
|       |                                                              |
| Study |                                                              |
|     g |                                                              |
| roups |                                                              |
|       |                                                              |
|   for |                                                              |
|       |                                                              |
| ident |                                                              |
| ified |                                                              |
|       |                                                              |
| comme |                                                              |
| rcial |                                                              |
|       |                                                              |
| activ |                                                              |
| ities |                                                              |
|       |                                                              |
|   are |                                                              |
|       |                                                              |
| being |                                                              |
|       |                                                              |
|    fo |                                                              |
| rmed. |                                                              |
|       |                                                              |
|  Imme |                                                              |
| diate |                                                              |
|       |                                                              |
| chall |                                                              |
| enges |                                                              |
|       |                                                              |
|    in |                                                              |
| clude |                                                              |
|       |                                                              |
|   tra |                                                              |
| ining |                                                              |
|       |                                                              |
|   for |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
| study |                                                              |
|       |                                                              |
|    gr |                                                              |
| oups, |                                                              |
|     i |                                                              |
| ntegr |                                                              |
| ating |                                                              |
|       |                                                              |
|   emp |                                                              |
| loyee |                                                              |
|       |                                                              |
| labor |                                                              |
|       |                                                              |
|  orga |                                                              |
| nizat |                                                              |
| ions, |                                                              |
|       |                                                              |
|    es |                                                              |
| tabli |                                                              |
| shing |                                                              |
|       |                                                              |
| miles |                                                              |
| tones |                                                              |
|       |                                                              |
|   for |                                                              |
|       |                                                              |
|  each |                                                              |
|       |                                                              |
| study |                                                              |
|       |                                                              |
|    gr |                                                              |
| oup's |                                                              |
|       |                                                              |
|  impl |                                                              |
| ement |                                                              |
| ation |                                                              |
|       |                                                              |
| plan, |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
| devel |                                                              |
| oping |                                                              |
|     a |                                                              |
|       |                                                              |
|   tra |                                                              |
| cking |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|  repo |                                                              |
| rting |                                                              |
|       |                                                              |
|    sy |                                                              |
| stem. |                                                              |
+-------+--------------------------------------------------------------+

+-------+--------------------------------------------------------------+
|       | **Improved Financial Performance**                           |
+-------+--------------------------------------------------------------+
| -     |                                                              |
| ***Ov |                                                              |
| ervie |                                                              |
| w:*** |                                                              |
|       |                                                              |
|   The |                                                              |
|     P |                                                              |
| resid |                                                              |
| ent's |                                                              |
|       |                                                              |
|   exp |                                                              |
| ected |                                                              |
|       |                                                              |
|    re |                                                              |
| sults |                                                              |
|       |                                                              |
|  from |                                                              |
|       |                                                              |
|  this |                                                              |
|       |                                                              |
| initi |                                                              |
| ative |                                                              |
|       |                                                              |
|    in |                                                              |
| clude |                                                              |
|       |                                                              |
|  more |                                                              |
|       |                                                              |
|   acc |                                                              |
| urate |                                                              |
|       |                                                              |
|    be |                                                              |
| nefit |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
| assis |                                                              |
| tance |                                                              |
|       |                                                              |
|   pay |                                                              |
| ments |                                                              |
|       |                                                              |
|    by |                                                              |
|       |                                                              |
|   red |                                                              |
| ucing |                                                              |
|       |                                                              |
|  erro |                                                              |
| neous |                                                              |
|       |                                                              |
|   pay |                                                              |
| ments |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|   imp |                                                              |
| roved |                                                              |
|       |                                                              |
|  acco |                                                              |
| untab |                                                              |
| ility |                                                              |
|       |                                                              |
|    to |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
|   Ame |                                                              |
| rican |                                                              |
|     p |                                                              |
| eople |                                                              |
|       |                                                              |
|    th |                                                              |
| rough |                                                              |
|       |                                                              |
| clean |                                                              |
|       |                                                              |
|    au |                                                              |
| dited |                                                              |
|       |                                                              |
|  fina |                                                              |
| ncial |                                                              |
|       |                                                              |
| state |                                                              |
| ments |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
| produ |                                                              |
| ction |                                                              |
|       |                                                              |
|    of |                                                              |
|     t |                                                              |
| imely |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|   acc |                                                              |
| urate |                                                              |
|       |                                                              |
|  fina |                                                              |
| ncial |                                                              |
|       |                                                              |
|    in |                                                              |
| forma |                                                              |
| tion. |                                                              |
+-------+--------------------------------------------------------------+
| -     |                                                              |
|   *** |                                                              |
| Depar |                                                              |
| tment |                                                              |
|       |                                                              |
|    Pr |                                                              |
| ogres |                                                              |
| s:*** |                                                              |
|       |                                                              |
|   The |                                                              |
|       |                                                              |
| Depar |                                                              |
| tment |                                                              |
|       |                                                              |
|   has |                                                              |
|       |                                                              |
|  comp |                                                              |
| leted |                                                              |
|     a |                                                              |
|       |                                                              |
|  very |                                                              |
|       |                                                              |
|   det |                                                              |
| ailed |                                                              |
|       |                                                              |
|  plan |                                                              |
|       |                                                              |
|    of |                                                              |
|     a |                                                              |
| ction |                                                              |
|       |                                                              |
|  incl |                                                              |
| uding |                                                              |
|       |                                                              |
| miles |                                                              |
| tones |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|  core |                                                              |
|       |                                                              |
|   cri |                                                              |
| teria |                                                              |
|       |                                                              |
|   for |                                                              |
|     s |                                                              |
| ystem |                                                              |
|       |                                                              |
|    up |                                                              |
| grade |                                                              |
|       |                                                              |
|   eff |                                                              |
| orts. |                                                              |
|       |                                                              |
|   The |                                                              |
|       |                                                              |
| Depar |                                                              |
| tment |                                                              |
|       |                                                              |
|   has |                                                              |
|       |                                                              |
| begun |                                                              |
|       |                                                              |
|    im |                                                              |
| pleme |                                                              |
| nting |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
|   new |                                                              |
|       |                                                              |
|   Reg |                                                              |
| ional |                                                              |
|       |                                                              |
|  Fina |                                                              |
| ncial |                                                              |
|       |                                                              |
| Manag |                                                              |
| ement |                                                              |
|     S |                                                              |
| ystem |                                                              |
|       |                                                              |
|    (R |                                                              |
| FMS), |                                                              |
|       |                                                              |
| which |                                                              |
|       |                                                              |
| meets |                                                              |
|       |                                                              |
|    fe |                                                              |
| deral |                                                              |
|       |                                                              |
|    re |                                                              |
| quire |                                                              |
| ments |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|   rep |                                                              |
| laces |                                                              |
|       |                                                              |
|   two |                                                              |
|     l |                                                              |
| egacy |                                                              |
|       |                                                              |
|   ove |                                                              |
| rseas |                                                              |
|       |                                                              |
| accou |                                                              |
| nting |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
| disbu |                                                              |
| rsing |                                                              |
|       |                                                              |
|   sys |                                                              |
| tems. |                                                              |
|       |                                                              |
| Also, |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
|    De |                                                              |
| partm |                                                              |
| ent's |                                                              |
|       |                                                              |
| *Acco |                                                              |
| untab |                                                              |
| ility |                                                              |
|       |                                                              |
|   Rep |                                                              |
| ort,* |                                                              |
|       |                                                              |
| which |                                                              |
|       |                                                              |
|   inc |                                                              |
| luded |                                                              |
|     a |                                                              |
|       |                                                              |
| clean |                                                              |
|       |                                                              |
|    op |                                                              |
| inion |                                                              |
|       |                                                              |
|    on |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
|    De |                                                              |
| partm |                                                              |
| ent's |                                                              |
|       |                                                              |
|  fina |                                                              |
| ncial |                                                              |
|     s |                                                              |
| tatem |                                                              |
| ents, |                                                              |
|       |                                                              |
|   rec |                                                              |
| eived |                                                              |
|       |                                                              |
|   the |                                                              |
|     C |                                                              |
| ertif |                                                              |
| icate |                                                              |
|       |                                                              |
|    in |                                                              |
|       |                                                              |
| Excel |                                                              |
| lence |                                                              |
|       |                                                              |
|    in |                                                              |
|       |                                                              |
|  Acco |                                                              |
| untab |                                                              |
| ility |                                                              |
|       |                                                              |
| Repor |                                                              |
| ting. |                                                              |
+-------+--------------------------------------------------------------+
| -   * |                                                              |
| **Upc |                                                              |
| oming |                                                              |
|     A |                                                              |
| ction |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|  Pote |                                                              |
| ntial |                                                              |
|       |                                                              |
|  Chal |                                                              |
| lenge |                                                              |
| s:*** |                                                              |
|       |                                                              |
|   The |                                                              |
|       |                                                              |
| Depar |                                                              |
| tment |                                                              |
|       |                                                              |
|    re |                                                              |
| mains |                                                              |
|       |                                                              |
|    on |                                                              |
|       |                                                              |
| track |                                                              |
|       |                                                              |
|    to |                                                              |
|       |                                                              |
|  meet |                                                              |
|       |                                                              |
|   its |                                                              |
|     f |                                                              |
| ourth |                                                              |
|       |                                                              |
|    qu |                                                              |
| arter |                                                              |
|       |                                                              |
| goals |                                                              |
|       |                                                              |
|  for  |                                                              |
| 2002. |                                                              |
|       |                                                              |
|   The |                                                              |
|       |                                                              |
|  chal |                                                              |
| lenge |                                                              |
|       |                                                              |
|  will |                                                              |
|       |                                                              |
|    be |                                                              |
|       |                                                              |
|    to |                                                              |
|       |                                                              |
|  meet |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
|   out |                                                              |
| lined |                                                              |
|       |                                                              |
| miles |                                                              |
| tones |                                                              |
|       |                                                              |
|    as |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
| Depar |                                                              |
| tment |                                                              |
|       |                                                              |
|   pro |                                                              |
| ceeds |                                                              |
|       |                                                              |
|  with |                                                              |
|       |                                                              |
|   the |                                                              |
|     r |                                                              |
| eplac |                                                              |
| ement |                                                              |
|       |                                                              |
|    of |                                                              |
|       |                                                              |
|   its |                                                              |
|       |                                                              |
| major |                                                              |
|       |                                                              |
|  fina |                                                              |
| ncial |                                                              |
|       |                                                              |
|   sys |                                                              |
| tems. |                                                              |
+-------+--------------------------------------------------------------+

+-------+--------------------------------------------------------------+
|       | **Expanded Electronic Government**                           |
+-------+--------------------------------------------------------------+
| -     |                                                              |
| ***Ov |                                                              |
| ervie |                                                              |
| w:*** |                                                              |
|       |                                                              |
|   The |                                                              |
|       |                                                              |
|  goal |                                                              |
|       |                                                              |
|    of |                                                              |
|       |                                                              |
|  this |                                                              |
|       |                                                              |
| initi |                                                              |
| ative |                                                              |
|       |                                                              |
|    is |                                                              |
|       |                                                              |
|    to |                                                              |
|       |                                                              |
|  make |                                                              |
|       |                                                              |
|    it |                                                              |
|       |                                                              |
|    si |                                                              |
| mpler |                                                              |
|       |                                                              |
|   for |                                                              |
|       |                                                              |
|   cit |                                                              |
| izens |                                                              |
|       |                                                              |
|    to |                                                              |
|       |                                                              |
|    re |                                                              |
| ceive |                                                              |
|       |                                                              |
|    hi |                                                              |
| gh-qu |                                                              |
| ality |                                                              |
|       |                                                              |
|    se |                                                              |
| rvice |                                                              |
|       |                                                              |
|    by |                                                              |
|       |                                                              |
|  expa |                                                              |
| nding |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
|    fe |                                                              |
| deral |                                                              |
|       |                                                              |
|    go |                                                              |
| vernm |                                                              |
| ent's |                                                              |
|       |                                                              |
|  effe |                                                              |
| ctive |                                                              |
|       |                                                              |
|   use |                                                              |
|       |                                                              |
|    of |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
|  Inte |                                                              |
| rnet. |                                                              |
|       |                                                              |
|  This |                                                              |
|       |                                                              |
|  Admi |                                                              |
| nistr |                                                              |
| ation |                                                              |
|       |                                                              |
|  will |                                                              |
|       |                                                              |
|    su |                                                              |
| pport |                                                              |
|       |                                                              |
|   pro |                                                              |
| jects |                                                              |
|       |                                                              |
|  that |                                                              |
|       |                                                              |
| offer |                                                              |
|     p |                                                              |
| erfor |                                                              |
| mance |                                                              |
|       |                                                              |
| gains |                                                              |
|     a |                                                              |
| cross |                                                              |
|     a |                                                              |
| gency |                                                              |
|     b |                                                              |
| ounda |                                                              |
| ries, |                                                              |
|       |                                                              |
|  such |                                                              |
|       |                                                              |
|    as |                                                              |
|       |                                                              |
| e-pro |                                                              |
| curem |                                                              |
| ents, |                                                              |
|       |                                                              |
|  e-gr |                                                              |
| ants, |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|   e-r |                                                              |
| egula |                                                              |
| tion. |                                                              |
+-------+--------------------------------------------------------------+
| -     |                                                              |
|   *** |                                                              |
| Depar |                                                              |
| tment |                                                              |
|       |                                                              |
|    Pr |                                                              |
| ogres |                                                              |
| s:*** |                                                              |
|       |                                                              |
|   The |                                                              |
|       |                                                              |
| Depar |                                                              |
| tment |                                                              |
|       |                                                              |
|   has |                                                              |
|     w |                                                              |
| orked |                                                              |
|       |                                                              |
|  with |                                                              |
|       |                                                              |
|   OMB |                                                              |
|       |                                                              |
|    to |                                                              |
|       |                                                              |
|    de |                                                              |
| velop |                                                              |
|     a |                                                              |
|       |                                                              |
|   wor |                                                              |
| kplan |                                                              |
|       |                                                              |
|    to |                                                              |
|     s |                                                              |
| ynchr |                                                              |
| onize |                                                              |
|     b |                                                              |
| etter |                                                              |
|     i |                                                              |
| nform |                                                              |
| ation |                                                              |
|       |                                                              |
| techn |                                                              |
| ology |                                                              |
|       |                                                              |
|  (IT) |                                                              |
|       |                                                              |
|   pla |                                                              |
| nning |                                                              |
|       |                                                              |
|  with |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
|    ov |                                                              |
| erall |                                                              |
|       |                                                              |
| Depar |                                                              |
| tment |                                                              |
|     b |                                                              |
| udget |                                                              |
|       |                                                              |
|    pr |                                                              |
| epara |                                                              |
| tion. |                                                              |
|       |                                                              |
|   Spe |                                                              |
| cific |                                                              |
| ally, |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
| Depar |                                                              |
| tment |                                                              |
|       |                                                              |
|    is |                                                              |
|       |                                                              |
|    wo |                                                              |
| rking |                                                              |
|       |                                                              |
|    to |                                                              |
|       |                                                              |
|   inc |                                                              |
| rease |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
| perce |                                                              |
| ntage |                                                              |
|       |                                                              |
|    of |                                                              |
|       |                                                              |
|    IT |                                                              |
|     i |                                                              |
| nvest |                                                              |
| ments |                                                              |
|       |                                                              |
|    co |                                                              |
| vered |                                                              |
|       |                                                              |
|    by |                                                              |
|     a |                                                              |
|       |                                                              |
|    ce |                                                              |
| ntral |                                                              |
|       |                                                              |
|    ca |                                                              |
| pital |                                                              |
|       |                                                              |
|   pla |                                                              |
| nning |                                                              |
|       |                                                              |
|   pro |                                                              |
| cess. |                                                              |
|       |                                                              |
|   The |                                                              |
|       |                                                              |
| Depar |                                                              |
| tment |                                                              |
|       |                                                              |
|  also |                                                              |
|       |                                                              |
|  comp |                                                              |
| leted |                                                              |
|       |                                                              |
|   its |                                                              |
|       |                                                              |
| Enter |                                                              |
| prise |                                                              |
|       |                                                              |
|    Ar |                                                              |
| chite |                                                              |
| cture |                                                              |
|       |                                                              |
|  Plan |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|  sent |                                                              |
|       |                                                              |
|    it |                                                              |
|       |                                                              |
|    to |                                                              |
|       |                                                              |
|   OMB |                                                              |
|       |                                                              |
|    on |                                                              |
|       |                                                              |
|  July |                                                              |
|       |                                                              |
|   17, |                                                              |
|       |                                                              |
|  2002 |                                                              |
|       |                                                              |
|   for |                                                              |
|       |                                                              |
|    re |                                                              |
| view. |                                                              |
+-------+--------------------------------------------------------------+
| -   * |                                                              |
| **Upc |                                                              |
| oming |                                                              |
|     A |                                                              |
| ction |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|  Pote |                                                              |
| ntial |                                                              |
|       |                                                              |
|  Chal |                                                              |
| lenge |                                                              |
| s:*** |                                                              |
|       |                                                              |
|   The |                                                              |
|       |                                                              |
| Depar |                                                              |
| tment |                                                              |
|       |                                                              |
|  will |                                                              |
|       |                                                              |
|    de |                                                              |
| velop |                                                              |
|       |                                                              |
|   sec |                                                              |
| urity |                                                              |
|       |                                                              |
| corre |                                                              |
| ctive |                                                              |
|     a |                                                              |
| ction |                                                              |
|       |                                                              |
| plans |                                                              |
|       |                                                              |
|   for |                                                              |
|       |                                                              |
|   any |                                                              |
|       |                                                              |
|   pro |                                                              |
| grams |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|    sy |                                                              |
| stems |                                                              |
|       |                                                              |
|  with |                                                              |
|       |                                                              |
|   sec |                                                              |
| urity |                                                              |
|     w |                                                              |
| eakne |                                                              |
| sses. |                                                              |
|       |                                                              |
|    At |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
|  same |                                                              |
|       |                                                              |
| time, |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
| Depar |                                                              |
| tment |                                                              |
|       |                                                              |
|    is |                                                              |
|       |                                                              |
|   act |                                                              |
| ively |                                                              |
|       |                                                              |
|    wo |                                                              |
| rking |                                                              |
|       |                                                              |
|    on |                                                              |
|       |                                                              |
|   its |                                                              |
|     a |                                                              |
| nnual |                                                              |
|       |                                                              |
|   sec |                                                              |
| urity |                                                              |
|       |                                                              |
|    re |                                                              |
| port. |                                                              |
|       |                                                              |
|   Inc |                                                              |
| luded |                                                              |
|       |                                                              |
|    in |                                                              |
|       |                                                              |
|  this |                                                              |
|     r |                                                              |
| eport |                                                              |
|       |                                                              |
|  will |                                                              |
|       |                                                              |
|    be |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
| evalu |                                                              |
| ation |                                                              |
|       |                                                              |
|    by |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
|  Insp |                                                              |
| ector |                                                              |
|       |                                                              |
|    Ge |                                                              |
| neral |                                                              |
|       |                                                              |
|    on |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
|    De |                                                              |
| partm |                                                              |
| ent's |                                                              |
|       |                                                              |
|    ef |                                                              |
| forts |                                                              |
|       |                                                              |
|    in |                                                              |
|       |                                                              |
|  2002 |                                                              |
|       |                                                              |
|    in |                                                              |
|       |                                                              |
|  reme |                                                              |
| dying |                                                              |
|       |                                                              |
|    sy |                                                              |
| stem- |                                                              |
| level |                                                              |
|       |                                                              |
|   sec |                                                              |
| urity |                                                              |
|     w |                                                              |
| eakne |                                                              |
| sses. |                                                              |
+-------+--------------------------------------------------------------+

+-------+--------------------------------------------------------------+
|       | **Budget & Performance Integration**                         |
+-------+--------------------------------------------------------------+
| -     |                                                              |
| ***Ov |                                                              |
| ervie |                                                              |
| w:*** |                                                              |
|       |                                                              |
|    To |                                                              |
|       |                                                              |
|    pr |                                                              |
| ovide |                                                              |
|     a |                                                              |
|       |                                                              |
|    gr |                                                              |
| eater |                                                              |
|       |                                                              |
| focus |                                                              |
|       |                                                              |
|    on |                                                              |
|       |                                                              |
|    pe |                                                              |
| rform |                                                              |
| ance, |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
|  Admi |                                                              |
| nistr |                                                              |
| ation |                                                              |
|       |                                                              |
| plans |                                                              |
|       |                                                              |
|    to |                                                              |
|       |                                                              |
|   for |                                                              |
| mally |                                                              |
|       |                                                              |
|  inte |                                                              |
| grate |                                                              |
|     p |                                                              |
| erfor |                                                              |
| mance |                                                              |
|       |                                                              |
|    re |                                                              |
| views |                                                              |
|       |                                                              |
|  with |                                                              |
|     b |                                                              |
| udget |                                                              |
|       |                                                              |
| decis |                                                              |
| ions. |                                                              |
|       |                                                              |
|   Sta |                                                              |
| rting |                                                              |
|       |                                                              |
|    in |                                                              |
|       |                                                              |
| 2003, |                                                              |
|       |                                                              |
|  each |                                                              |
|     a |                                                              |
| gency |                                                              |
|       |                                                              |
|  will |                                                              |
|       |                                                              |
|  work |                                                              |
|       |                                                              |
|  with |                                                              |
|       |                                                              |
|   OMB |                                                              |
|       |                                                              |
|    to |                                                              |
|       |                                                              |
| begin |                                                              |
|       |                                                              |
|    to |                                                              |
|       |                                                              |
|  link |                                                              |
|     p |                                                              |
| erfor |                                                              |
| mance |                                                              |
|       |                                                              |
|  data |                                                              |
|       |                                                              |
|    to |                                                              |
|     b |                                                              |
| udget |                                                              |
|       |                                                              |
|  requ |                                                              |
| ests. |                                                              |
|     U |                                                              |
| ltima |                                                              |
| tely, |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
|  goal |                                                              |
|       |                                                              |
|    is |                                                              |
|       |                                                              |
|    to |                                                              |
|       |                                                              |
|  have |                                                              |
|     b |                                                              |
| etter |                                                              |
|       |                                                              |
|    co |                                                              |
| ntrol |                                                              |
|       |                                                              |
|  over |                                                              |
|       |                                                              |
|  reso |                                                              |
| urces |                                                              |
|       |                                                              |
|  used |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|    gr |                                                              |
| eater |                                                              |
|       |                                                              |
|  acco |                                                              |
| untab |                                                              |
| ility |                                                              |
|       |                                                              |
|   for |                                                              |
|       |                                                              |
| their |                                                              |
|       |                                                              |
|   res |                                                              |
| ults. |                                                              |
+-------+--------------------------------------------------------------+
| -     |                                                              |
|   *** |                                                              |
| Depar |                                                              |
| tment |                                                              |
|       |                                                              |
|    Pr |                                                              |
| ogres |                                                              |
| s:*** |                                                              |
|       |                                                              |
|   The |                                                              |
|       |                                                              |
| Depar |                                                              |
| tment |                                                              |
|       |                                                              |
|   rec |                                                              |
| ently |                                                              |
|     r |                                                              |
| eorga |                                                              |
| nized |                                                              |
|       |                                                              |
|   its |                                                              |
|     b |                                                              |
| udget |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|  stra |                                                              |
| tegic |                                                              |
|       |                                                              |
|   pla |                                                              |
| nning |                                                              |
|       |                                                              |
| staff |                                                              |
|       |                                                              |
|    to |                                                              |
|     c |                                                              |
| reate |                                                              |
|     a |                                                              |
|       |                                                              |
|   new |                                                              |
|       |                                                              |
|   Res |                                                              |
| ource |                                                              |
|       |                                                              |
| Manag |                                                              |
| ement |                                                              |
|     b |                                                              |
| ureau |                                                              |
|       |                                                              |
|    fo |                                                              |
| cused |                                                              |
|       |                                                              |
|    on |                                                              |
|       |                                                              |
|   the |                                                              |
|     P |                                                              |
| resid |                                                              |
| ent's |                                                              |
|       |                                                              |
| Manag |                                                              |
| ement |                                                              |
|       |                                                              |
|    Ag |                                                              |
| enda. |                                                              |
|       |                                                              |
|   The |                                                              |
|       |                                                              |
|   new |                                                              |
|     b |                                                              |
| ureau |                                                              |
|       |                                                              |
|    is |                                                              |
|       |                                                              |
| devel |                                                              |
| oping |                                                              |
|     a |                                                              |
|       |                                                              |
|    pr |                                                              |
| ocess |                                                              |
|       |                                                              |
|  requ |                                                              |
| iring |                                                              |
|     b |                                                              |
| udget |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
| human |                                                              |
|       |                                                              |
|  reso |                                                              |
| urces |                                                              |
|     i |                                                              |
| nform |                                                              |
| ation |                                                              |
|       |                                                              |
|    to |                                                              |
|       |                                                              |
|    be |                                                              |
|       |                                                              |
|  tied |                                                              |
|       |                                                              |
|    to |                                                              |
|     p |                                                              |
| erfor |                                                              |
| mance |                                                              |
|       |                                                              |
|  plan |                                                              |
| ning. |                                                              |
|       |                                                              |
|    In |                                                              |
|       |                                                              |
|  addi |                                                              |
| tion, |                                                              |
|       |                                                              |
|   the |                                                              |
|       |                                                              |
| Depar |                                                              |
| tment |                                                              |
|       |                                                              |
|   has |                                                              |
|       |                                                              |
| begun |                                                              |
|       |                                                              |
|  util |                                                              |
| izing |                                                              |
|       |                                                              |
|    cu |                                                              |
| rrent |                                                              |
|       |                                                              |
|  budg |                                                              |
| eting |                                                              |
|       |                                                              |
|  data |                                                              |
| bases |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|    ap |                                                              |
| plica |                                                              |
| tions |                                                              |
|       |                                                              |
|    to |                                                              |
|       |                                                              |
|    en |                                                              |
| hance |                                                              |
|       |                                                              |
|   the |                                                              |
|     i |                                                              |
| ntegr |                                                              |
| ation |                                                              |
|       |                                                              |
|   pro |                                                              |
| cess. |                                                              |
+-------+--------------------------------------------------------------+
| -   * |                                                              |
| **Upc |                                                              |
| oming |                                                              |
|     A |                                                              |
| ction |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|  Pote |                                                              |
| ntial |                                                              |
|       |                                                              |
|  Chal |                                                              |
| lenge |                                                              |
| s:*** |                                                              |
|       |                                                              |
|   The |                                                              |
|       |                                                              |
| Depar |                                                              |
| tment |                                                              |
|       |                                                              |
|  cont |                                                              |
| inues |                                                              |
|       |                                                              |
|    to |                                                              |
|       |                                                              |
|    de |                                                              |
| velop |                                                              |
|       |                                                              |
| attai |                                                              |
| nable |                                                              |
|       |                                                              |
| goals |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|   tan |                                                              |
| gible |                                                              |
|     p |                                                              |
| erfor |                                                              |
| mance |                                                              |
|       |                                                              |
|   mea |                                                              |
| sures |                                                              |
|       |                                                              |
|  that |                                                              |
|       |                                                              |
| accur |                                                              |
| ately |                                                              |
|       |                                                              |
| gauge |                                                              |
|       |                                                              |
|   its |                                                              |
|       |                                                              |
|  prog |                                                              |
| ress. |                                                              |
|       |                                                              |
| Devel |                                                              |
| oping |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|    im |                                                              |
| pleme |                                                              |
| nting |                                                              |
|     a |                                                              |
|       |                                                              |
|   new |                                                              |
|       |                                                              |
|    Ce |                                                              |
| ntral |                                                              |
|       |                                                              |
|  Fina |                                                              |
| ncial |                                                              |
|       |                                                              |
|   Pla |                                                              |
| nning |                                                              |
|     S |                                                              |
| ystem |                                                              |
|       |                                                              |
|  will |                                                              |
|       |                                                              |
|    be |                                                              |
|     a |                                                              |
|       |                                                              |
|   cri |                                                              |
| tical |                                                              |
|       |                                                              |
|  step |                                                              |
|       |                                                              |
|    in |                                                              |
|       |                                                              |
|   tra |                                                              |
| cking |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|  veri |                                                              |
| fying |                                                              |
|     a |                                                              |
| ctual |                                                              |
|     p |                                                              |
| erfor |                                                              |
| mance |                                                              |
|       |                                                              |
|  data |                                                              |
|       |                                                              |
|   and |                                                              |
|       |                                                              |
|    li |                                                              |
| nking |                                                              |
|       |                                                              |
|    it |                                                              |
|       |                                                              |
|    to |                                                              |
|       |                                                              |
| Depar |                                                              |
| tment |                                                              |
| -wide |                                                              |
|       |                                                              |
|  fina |                                                              |
| ncial |                                                              |
|       |                                                              |
| resou |                                                              |
| rces. |                                                              |
+-------+--------------------------------------------------------------+

# 4.0 Strategic Goal Executive Summaries

The balance of the Performance Plan focuses on summarizing the
Department of State's plans for each strategic goal. The strategic goal
framework presented in this document was first outlined in the
International Affairs Strategic Plan and the Department's Strategic Plan
written in 1997 and updated in 2000. In the Fall of 2002, the Department
will craft a new Department Strategic Plan, the first under the Bush
Administration.

During this strategic planning process, the Department will take a hard
look at the current strategic goals and the overall framework to ensure
that it continues to tell the story of what the Department is and should
be working hard to achieve. In the interim, the Department's 2003 and
2004 Performance Plans will be organized around the current framework of
twenty Department strategic goals. As outlined in Figure 2, sixteen of
these strategic goals are policy oriented with four additional goals
focused on the Department's internal management.

Each strategic goal section contains an executive summary including
performance goals, highlighted stories that demonstrate the Department's
work in that content field, key performance indicators, and trended data
including projected performance data for 2003.

![](media/image4.wmf){width="4.08125in" height="4.4in"}Figure 2:
Department of State Strategic Goals

+-----------------------------------------------------------------------+
| ## Strategic Goal 1: Regional Stability                               |
|                                                                       |
| Ensure that local and regional instabilities do not threaten the      |
| security                                                              |
|                                                                       |
| and well being of the United States and its allies.                   |
+-----------------------------------------------------------------------+

The strength of our national security is often determined by the safety
of Americans at home and abroad. The Department employs diplomacy as the
nation's first line of offense to ensure our citizens' safety. It is
often our most cost-effective solution as well. Through diplomacy, our
country builds and strengthens relations with countries worldwide by
shaping regional environments in ways that can prevent, contain or
resolve conflicts and foster cooperative efforts. For the Department to
work actively to deter local and regional instabilities, it will
continue to focus on achieving the following four performance goals.

+-----------------------------------------------------------------------+
| #### Performance Goal 1:                                              |
|                                                                       |
| #### U.S. ties with                                                   |
|  neighbors and key allies are close, strong, utilized, and effective. |
+-----------------------------------------------------------------------+

The Department is focused on fostering close and stable ties with U.S.
neighbors and key allies abroad, providing an educational window to
diverse policy ideas that can be applied at home.

In 2003, ties with the North Atlantic Treaty Organization (NATO) will
remain one of the strongest and most important partnerships. Through
NATO, the Department is focused on cooperating on numerous fronts
including identifying and bringing to justice the perpetrators of
terrorism. In the past, this partnership was critical to halting former
Serbian President Slobodan Milosevic's attempt to suppress his country's
citizens, which led to his defeat, arrest, and to a new
democratically-elected Yugoslav president. NATO's readiness to join the
U.S. in responding to the September 11 terrorist attacks has shown that
the partnering relationship is about security not just in Europe, but
also here at home and beyond NATO country borders. We also seek a Prague
NATO Summit that will advance the President's vision for NATO of "new
capabilities, new members, and new relationships."

This Department performance goal plan also includes strengthening
international partnerships with such allies as the European Union (EU)
and the Organization of American States (OAS). The Department is
pursuing a variety of initiatives with these partners ultimately focused
on providing the U.S. with a platform better to secure the safety of its
citizens and of its key allies worldwide. In this regard, for example,
the Department is working closely with the EU to close down terrorist
financing networks.

The U.S.'s deepening relationship with Russia remains a key priority.
The Department has a new powerful partner in Russia as a valuable ally
in the war against terrorism; in promoting regional security in areas
such as the Middle East; in shaping a new U.S. -- Russia strategic
framework; and as a partner of NATO. The Department also will continue
to advocate for multiple oil pipelines from the Caspian Sea into world
markets. This will enhance world energy security and help promote
economic growth in Central Asia and the Caucasus.

Finally, the Department continues to maintain strong relations with our
neighbors, Canada and Mexico, working increasingly with other U.S.
federal agencies on border policy issues. These efforts to maintain and
strengthen relationships with key allies and neighbors will ultimately
contribute to more effective security worldwide, and thus greater
national security for American citizens.

Figure 4

Regional Stability Performance Goal 1: Key Indicators and Projected
Performance

+-----------+-----------+-----------+-----------+-----------+-----------+
| **Key     | **1999    | **2000    | **2001    | **2002    | **2003    |
| Pe        | B         | Actual**  | Actual**  | Target**  | Projected |
| rformance | aseline** |           |           |           | Perf      |
| In        |           |           |           |           | ormance** |
| dicator** |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Status of | 1999      | Allies    | ESDI      | Trans     | NATO      |
| European  | W         | revised   | resolved  | -Atlantic | extends   |
| security  | ashington | Trans     | non       | framework | in        |
| relat     | Summit    | -Atlantic | -European | includes  | vitations |
| ionships. | approved  | Framework | Union     | European  | to new    |
|           | Strategic | for       | allies    | ability   | members.  |
|           | Concept   | Strategic | part      | to act    |           |
|           | endorsing | Concept,  | icipation | where the |           |
|           | partners  | ESDI      | and       | Alliance  |           |
|           | and       | elements, | EU-NATO   | as a      |           |
|           | enhancing | and Open  | links.    | whole is  |           |
|           | European  | Door      |           | not       |           |
|           | Security  | Policy.   | NATO      | engaged.  |           |
|           | Defense   |           | re        |           |           |
|           | I         | M         | committed | Improved  |           |
|           | nitiative | embership | to Open   | cap       |           |
|           | (ESDI).   | Action    | Door      | abilities |           |
|           |           | Plan      | Policy    | b         |           |
|           |           | (MAP)     | with      | olstering |           |
|           |           | launched. | en        | both      |           |
|           |           |           | largement | Defense   |           |
|           |           | NA        | round in  | Cap       |           |
|           |           | TO-Russia | November  | abilities |           |
|           |           | rel       | 2002.     | I         |           |
|           |           | ationship |           | nitiative |           |
|           |           | expanded  | Nations   | (DCI) and |           |
|           |           | beyond    | utilized  | ESDI.     |           |
|           |           | Stab      | MAP to    |           |           |
|           |           | ilization | prepare   | NA        |           |
|           |           | Force     | for NATO  | TO-Russia |           |
|           |           | (SFOR)    | me        | rel       |           |
|           |           | and       | mbership. | ationship |           |
|           |           | Kosovo    |           | outlined. |           |
|           |           | Force     |           |           |           |
|           |           | (KFOR).   |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Bilateral | Japan     | Japan     | Japan     | U.S. and  | U.S. and  |
| security  | revised   | i         | came      | Japan     | Japan     |
| co        | Defense   | dentified | close to  | agree on  | agree on  |
| operation | G         | re        | final     | type of   | final     |
| with      | uidelines | placement | decision  | re        | plan for  |
| Japan.    | imp       | site for  | on        | placement | Futenma   |
|           | lementing | U.S.      | location  | facility  | re        |
|           | leg       | military  | and       | to build, | placement |
|           | islation. | f         | con       | including | facility. |
|           |           | acilities | struction | sea, land |           |
|           |           | at        | method.   | or a      | Transfer  |
|           |           | Futenma.  |           | co        | of        |
|           |           |           | SMA       | mbination | custody   |
|           |           | Special   | ratified  | of        | issues    |
|           |           | Measures  | and       | options.  | regarding |
|           |           | Agreement | o         |           | U.S.      |
|           |           | (SMA)     | perations |           | service   |
|           |           | neg       | began.    |           | personnel |
|           |           | otiations |           |           | resolved. |
|           |           | c         |           |           |           |
|           |           | ompleted. |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+

+-----------------------------------------------------------------------+
| #### Performance Goal 2:                                              |
|                                                                       |
| #### America's regional partners are stable and secure.               |
+-----------------------------------------------------------------------+

In addition to maintaining relationships with key allies, obtaining
regional stability also requires fostering stable working relationships
with leading regional states. The goal is to use diplomatic tools and
key diplomatic relationships to shape regional environments in ways that
can prevent conflicts from arising and which can also, if such conflicts
should arise, resolve them peacefully.

Although the Department will continue actively to foster relationships
in each region, several key initiatives remain on the agenda in 2003.
The first is to support the emergence of China as a stable and
nonaggressive partner that tolerates differing views, adheres to
international rules of conduct, and cooperates with the U.S. to build a
secure regional environment. In the Middle East, the Department will
also continue to focus on promoting regional stability through a
comprehensive strategy to integrate the region into the international
order. For example, the Department is focused on promoting the stability
and economic development of Jordan and Egypt. In addition, the
Department will continue to support peacekeeping operations in potential
Middle East conflict zones, including the United Nations Interim Force
in Lebanon (UNIFIL), the United Nations Iraq-Kuwait Observation Mission
(UNIKOM), and the Multinational Force and Observers (MFO). Finally, the
Department also works with our partners in the Middle East to ensure the
steady flow of Persian Gulf energy exports through regional shipping
lanes. The Department will continue to strengthen engagement with India,
encouraging it to play an increasing and responsible regional and global
role. The focus is on strengthening U.S.-India economic ties while
promoting nuclear and missile restraint and Indo-Pakistani dispute
resolution.

In achieving this performance goal, the Department also works diligently
to create strong and stable relationships and partnerships with such
regional organizations as the Association of South East Asian Nations
(ASEAN), the African Union (AU), and the Organization for Security and
Cooperation in Europe (OSCE).

Figure 5

Regional Stability Performance Goal 2: Key Indicators and Projected
Performance

+-----------+-----------+-----------+-----------+-----------+-----------+
| **Key     | **1999    | **2000    | **2001    | **2002    | **2003    |
| Pe        | B         | Actual**  | Actual**  | Target**  | Projected |
| rformance | aseline** |           |           |           | Perf      |
| In        |           |           |           |           | ormance** |
| dicator** |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Status of | Dialogue  | Co        | Progress  | Co        | China     |
| Chinese   | was       | operation | slow and  | operation | dem       |
| co        | initiated | on        | continued | increases | onstrates |
| operation | and       | regional  | concern   | while     | counter   |
| on        | sub       | security  | with      | ef        | terrorism |
| regional  | sequently | selective | China's   | fectively | coo       |
| security, | s         | and       | arms      | managing  | peration. |
| spe       | uspended. | episodic. | buildup   | our       |           |
| cifically |           |           | across    | dif       | Tension   |
| in        |           |           | the       | ferences. | on the    |
| Cro       |           |           | Taiwan    |           | Korean    |
| ss-Strait |           |           | Strait.   | Encourage | Peninsula |
| relations |           |           |           | r         | and       |
| and in    |           |           | China     | esumption | across    |
| engaging  |           |           | c         | of        | the       |
| North     |           |           | ooperated | Cro       | Straits   |
| Korea.    |           |           | in        | ss-Strait | reduced.  |
|           |           |           | en        | dialogue. |           |
|           |           |           | couraging |           |           |
|           |           |           | North     |           |           |
|           |           |           | Korean    |           |           |
|           |           |           | openness  |           |           |
|           |           |           | and       |           |           |
|           |           |           | dialogue. |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Imple     | CFE       | CFE       | S         | Russia in | Orderly   |
| mentation | a         | a         | uccessful | c         | CFE       |
| of        | daptation | daptation | Review    | ompliance | accession |
| Con       | neg       | neg       | C         | with      | efforts   |
| ventional | otiations | otiations | onference | flank     | underway. |
| Forces in | c         | suc       | advanced  | limits    |           |
| Europe    | ontinued. | cessfully | U.S. and  | and Final | Full      |
| (CFE)     |           | c         | NATO      | Act       | imple     |
| Treaty.   |           | ompleted. | i         | com       | mentation |
|           |           |           | nterests. | mitments, | of        |
|           |           | Circ      |           | allowing  | adapted   |
|           |           | umstances | Russia    | rat       | CFE       |
|           |           | not ready | made      | ification | Treaty.   |
|           |           | for Entry | serious   | and entry |           |
|           |           | into      | moves     | into      |           |
|           |           | Force     | toward    | force     |           |
|           |           | (EIF).    | c         | (EIF).    |           |
|           |           |           | ompliance |           |           |
|           |           |           | pushing   |           |           |
|           |           |           | closer    |           |           |
|           |           |           | NATO's    |           |           |
|           |           |           | rat       |           |           |
|           |           |           | ification |           |           |
|           |           |           | of CFE    |           |           |
|           |           |           | Treaty in |           |           |
|           |           |           | 2002.     |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+

+-----------------------------------------------------------------------+
| #### Performance Goal 3:                                              |
|                                                                       |
| #### American and multinational tools for c                           |
| onflict prevention and resolution are ready, utilized, and effective. |
+-----------------------------------------------------------------------+

Enhancing the long-term ability of our allies to meet their self-defense
needs and encouraging active participation in bilateral and multilateral
security building measures actively contributes to regional stability.
The Department is specifically focused on implementing tools that can
address near-term threats while continuing to develop innovative methods
necessary for future conflicts. For example, the U.S. and its partners
are taking steps to prevent illegal diamond trading from fueling
insurrection in Africa while safeguarding legitimate trade. In 2003 the
Department will continue to focus on strengthening the effectiveness of
peacekeeping missions, negotiations, and implementation of arms control
and security initiatives.

Figure 6

Regional Stability Performance Goal 3: Key Indicators and Projected
Performance

+-------------+-------------+-------------+-------------+-------------+
| **Key       | **2000      | **2001      | **2002      | **2003      |
| Performance | Baseline**  | Actual**    | Target**    | Projected   |
| Indicator** |             |             |             | Pe          |
|             | **(1999 not |             |             | rformance** |
|             | a           |             |             |             |
|             | vailable)** |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Country     | O           | OAU         | OAU,        | OAU,        |
| training    | rganization | continued   | ECOWAS, and | ECOWAS, and |
| and         | of African  | to support  | SADC        | SADC        |
| pa          | Unity (OAU) | p           | continue    | increase    |
| rticipation | pa          | eacekeeping | pa          | training    |
| in African  | rticipation | efforts in  | rticipation | for         |
| p           | in Congo    | Congo and   | in conflict | p           |
| eacekeeping | pe          | Ethiop      | resolution, | eacekeeping |
| missions.   | acekeeping. | ia-Eritrea. | p           | with        |
|             |             |             | eacekeeping | command and |
|             | Economic    | Training of | and         | control     |
|             | Community   | battalions  | regional    | ca          |
|             | of West     | for UN      | stability   | pabilities. |
|             | African     | Mission in  | efforts in  |             |
|             | States      | Sierra      | crises that |             |
|             | (ECOWAS)    | Leone.      | arise.      |             |
|             | pa          |             |             |             |
|             | rticipation |             |             |             |
|             | in          |             |             |             |
|             | p           |             |             |             |
|             | eacekeeping |             |             |             |
|             | in Sierra   |             |             |             |
|             | Leone.      |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Imp         | Heightened  | Successful  | Kosovo      | OSCE        |
| lementation | OSCE role   | elections   | elections   | oversight   |
| of          | in the      | in Kosovo.  | in 2001     | on          |
| O           | Balkans.    |             | lead to     | Provincial  |
| rganization |             | U.S.        | functioning | elections   |
| for         | "Assistance | portion of  | democratic  | in the      |
| Security    | Group"      | REACT fully | in          | Balkans.    |
| and         | returned to | o           | stitutions. |             |
| Cooperation | Chechnya as | perational. |             | Georgia     |
| in Europe   | i           |             | "Assistance | isolated    |
| (OSCE)      | nterlocutor |             | Group" in   | from        |
| Summit      | on          |             | Chechnya    | Chechnya    |
| I           | h           |             | has broader | spillover.  |
| nitiatives. | umanitarian |             | role in     |             |
|             | issues.     |             | political   | "Assistance |
|             |             |             | dialogue    | Group" in   |
|             | Progress to |             | with        | Chechnya    |
|             | ope         |             | Russia.     | plays       |
|             | rationalize |             |             | significant |
|             | Rapid       |             |             | role in     |
|             | Expert      |             |             | political   |
|             | Assistance  |             |             | dialogue    |
|             | and         |             |             | with        |
|             | Cooperation |             |             | Russia.     |
|             | (REACT)     |             |             |             |
|             | began.      |             |             |             |
+-------------+-------------+-------------+-------------+-------------+

+-----------------------------------------------------------------------+
| #### Performance Goal 4:                                              |
|                                                                       |
| #### Outstanding regional conflicts are contained and resolved.       |
+-----------------------------------------------------------------------+

The U.S. role in conflict resolution puts the Department at the
frontlines of political tension. Although the Department works toward
the resolution of conflicts worldwide, its focus is on those conflicts
which, if left unresolved, could lead to greater regional instability
and thus deleteriously affect overall U.S. national security. In 2003
the Department will work to resolve the Israeli--Arab conflict and
strife over the Kashmir Line of Control.

Figure 7

Regional Stability Performance Goal 4: Key Indicators and Projected
Performance

+-----------+-----------+-----------+-----------+-----------+-----------+
| **Key     | **1999    | **2000    | **2001    | **2002    | **2003    |
| Pe        | B         | Actual**  | Actual**  | Target**  | Projected |
| rformance | aseline** |           |           |           | Perf      |
| In        |           |           |           |           | ormance** |
| dicator** |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Status of | F         | Outbreak  | E         | No major  | Cessation |
| Ara       | oundation | of        | scalation | outbreak  | of        |
| b-Israeli | laid for  | violence  | of        | of        | violence. |
| violence  | imple     | between   | violence  | violence  |           |
| and       | mentation | Israelis  | c         | and       | Parties   |
| nego      | of Wye    | and       | ontinued; | parties   | return to |
| tiations. | A         | Pal       | peace     | actively  | the       |
|           | greement. | estinians | ne        | involved  | ne        |
|           |           | and       | gotiation | in        | gotiating |
|           | Advanced  | collapse  | broken    | nego      | table.    |
|           | Israe     | of        | off.      | tiations. |           |
|           | li-Syrian | permanent |           |           |           |
|           | nego      | status    |           | Reform of |           |
|           | tiations. | nego      |           | Pa        |           |
|           |           | tiations. |           | lestinian |           |
|           | Es        |           |           | A         |           |
|           | tablished |           |           | uthority. |           |
|           | trade     |           |           |           |           |
|           | offices   |           |           |           |           |
|           | of Arab   |           |           |           |           |
|           | states in |           |           |           |           |
|           | Israel.   |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Status of | Fighting  | Continued | S         | Major     | Inf       |
| relations | broke out | military  | uspension | Kashmir   | iltration |
| between   | over line | action by | of Indian | jihadist  | and       |
| Pakistan  | of        | both      | offensive | attacks   | number of |
| and India | control.  | sides     | security  | in India  | terrorism |
| on        |           | along the | force     | in        | attacks   |
| Kashmir.  | Attempts  | line of   | o         | October,  | decline   |
|           | at        | control   | perations | December; | by at     |
|           | ne        | (LOC).    | Nov-May   | India     | least 50% |
|           | gotiation |           |           | fully     | from      |
|           | made no   | Existing  | Continued | mobilizes | 00-02     |
|           | progress. | CBM's     | militant  | and       | average.  |
|           |           | ignored.  | inf       | threatens |           |
|           |           |           | iltration | to        | Military  |
|           |           | Pakistan  | and       | r         | training  |
|           |           | providing | attacks.  | etaliate. | camps and |
|           |           | materiel  |           |           | related   |
|           |           | a         | Agra      | Musharraf | infras    |
|           |           | ssistance | Summit    | promises  | tructures |
|           |           | and       | broke     | that      | in        |
|           |           | training  | down over | Pakistan  | Pakistan  |
|           |           | to groups | c         | will not  | are       |
|           |           | fighting  | ommuniqué | be a base | subs      |
|           |           | in        | wording   | for       | tantially |
|           |           | Kashmir.  | on        | terrorism | di        |
|           |           |           | t         | in other  | smantled. |
|           |           | No good   | errorism. | c         |           |
|           |           | channels  |           | ountries, | Military  |
|           |           | of        |           | promises  | forces on |
|           |           | commu     |           | to half   | both      |
|           |           | nication. |           | infi      | sides     |
|           |           |           |           | ltration. | returned  |
|           |           |           |           |           | to        |
|           |           |           |           | India     | p         |
|           |           |           |           | takes     | re-crisis |
|           |           |           |           | first     | locations |
|           |           |           |           | steps     | and       |
|           |           |           |           | towards   | readiness |
|           |           |           |           | demob     | levels.   |
|           |           |           |           | ilization |           |
|           |           |           |           | and       | Kashmir   |
|           |           |           |           | promises  | elections |
|           |           |           |           | open      | conducted |
|           |           |           |           | elections | in open   |
|           |           |           |           | in        | and       |
|           |           |           |           | Kashmir.  | inclusive |
|           |           |           |           |           | fashion.  |
|           |           |           |           | Inf       |           |
|           |           |           |           | iltration | India     |
|           |           |           |           | decline,  | resumes   |
|           |           |           |           | but       | dialogue  |
|           |           |           |           | attacks   | with      |
|           |           |           |           | continue. | Pakistan  |
|           |           |           |           | India     | on all    |
|           |           |           |           | pledges   | issues    |
|           |           |           |           | to resume | except    |
|           |           |           |           | dialogue  | Kashmir.  |
|           |           |           |           | if        |           |
|           |           |           |           | Kashmir   |           |
|           |           |           |           | elections |           |
|           |           |           |           | are not   |           |
|           |           |           |           | disrupted |           |
|           |           |           |           | by        |           |
|           |           |           |           | violence. |           |
+-----------+-----------+-----------+-----------+-----------+-----------+

+-----------------------------------------------------------------------+
| ## Strategic Goal 2: Weapons of Mass Destruction                      |
|                                                                       |
| Reduce the threat of weapons of mass destruction.                     |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+

The chief threat to the security of the U.S. is no longer a rival
superpower. Today, America is immediately threatened by terrorist
groups, especially if they seek to use nuclear, biological, and chemical
weapons against our nation. Preventing the proliferation of these deadly
weapons and their delivery systems, and reducing the number of those
already in existence, is therefore a top priority for the Department.
The Department is also seeking to bolster the international arms control
regimes that counter weapons of mass destruction (WMD), including by
pressing for rigorous compliance with their requirements. The security
of the U.S. depends upon the vigilance and skill with which the U.S.
Government protects its citizens against this dire threat. The
Department is a key leader in this struggle.

+-----------------------------------------------------------------------+
| **Performance Goal 1:**                                               |
|                                                                       |
| Weapons of mass destruction and their means of delivery are           |
| contained; proliferation to other countries or terrorists is          |
| prevented, contained or reversed.                                     |
+-----------------------------------------------------------------------+

The upsurge in terrorist attacks in the aftermath of the collapse of the
Soviet Union, ranging in character from the release of sarin gas by Aum
Shinrikyo in Tokyo in 1995 to the events of September 11, demonstrates
the pressing importance of containing and preventing the proliferation
of weapons of mass destruction. In an age of advanced technology and
communications, decentralized terrorist groups like Al-Qaida, supported
by their state sponsors, are looking to assault the U.S. with weapons of
enormous destructive power. At the same time, the breakdown of order in
the former Soviet Union, coupled with irresponsible attitudes towards
proliferation among some nations, has opened up markets of supply for
terrorist demand.

Given this perilous picture, the U.S. has nevertheless made real
progress in its nonproliferation efforts by working with other countries
to impede proliferant states from gaining access to WMD and
missile-related materials, equipment, technology, and expertise. The
chief states of concern under this goal are Russia, other Eurasian
states, and China, whose exports can assist proliferant states.
Proliferant states include North Korea, Iran, Iraq, Libya and other
regimes that are seeking to develop WMD. The Department is pressuring
all of these states to halt their proliferation activities and / or WMD
and missile development programs.

Figure 9

Weapons of Mass Destruction Performance Goal 1: Key Indicators and
Projected Performance

+-------------+-------------+-------------+-------------+-------------+
| **Key       | **2000      | **2001      | **2002      | **2003      |
| Performance | Baseline**  | Actual**    | Target**    | Projected   |
| Indicator** |             |             |             | Pe          |
|             | **(1999 not |             |             | rformance** |
|             | a           |             |             |             |
|             | vailable)** |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Access to   | Russian     | Partial     | Russia      | Russia      |
| Weapons of  | entities    | success in  | stops       | stops       |
| Mass        | provided    | halting     | nuclear     | nuclear     |
| Destruction | technology  | Russian     | cooperation | cooperation |
| impeded.    | and         | assistance  | with Iran.  | with Iran;  |
|             | assistance  | to Iran.    |             | fully       |
|             | to Iran and |             | Progress on | adheres to  |
|             | India.      | China       | China's     | NSG         |
|             |             | implemented | adherence   | guidelines. |
|             | China       | 1997        | to 1997     |             |
|             | announced   | nuclear     | c           | China fully |
|             | it would    | c           | ommitments; | implements  |
|             | not assist  | ommitments, | China       | and adheres |
|             | other       | but not     | abides by   | to 1997     |
|             | countries   | those of    | its export  | nuclear     |
|             | in          | November    | control     | commitments |
|             | developing  | 2000.       | policy and  | and         |
|             | ballistic   |             | makes       | November    |
|             | missiles.   | North Korea | im          | 2000        |
|             |             | did not     | provements. | missile     |
|             | North Korea | export      |             | c           |
|             | negotiated  | nuclear     | North Korea | ommitments, |
|             | on ending   | material or | does not    | including   |
|             | missile     | technology, | export      | effective   |
|             | exports.    | but         | nuclear     | enforcement |
|             |             | continued   | material or | of          |
|             | 1 of 12 NIS | to seek     | technology  | co          |
|             | (Ukraine)   | buyers for  | and agrees  | mprehensive |
|             | enforced    | missile     | to          | miss        |
|             | export      | exports.    | constrain   | ile-related |
|             | controls.   |             | missile     | export      |
|             |             | Marked      | exports.    | controls.   |
|             |             | increase in |             |             |
|             |             | meeting     | NIS and     | North Korea |
|             |             | export      | other       | eliminates  |
|             |             | control     | countries   | or freezes  |
|             |             | standards   | move        | its MTCR    |
|             |             | and in      | towards     | class       |
|             |             | i           | enforcement | missile     |
|             |             | nterdicting | of export   | programs    |
|             |             | WMD and     | control     | exports;    |
|             |             | related     | standards.  | agrees to   |
|             |             | components. |             | all         |
|             |             |             |             | commitments |
|             |             |             |             | in the      |
|             |             |             |             | Agreed      |
|             |             |             |             | Framework.  |
|             |             |             |             |             |
|             |             |             |             | Significant |
|             |             |             |             | progress by |
|             |             |             |             | NIS and     |
|             |             |             |             | other       |
|             |             |             |             | countries   |
|             |             |             |             | towards     |
|             |             |             |             | enforcement |
|             |             |             |             | of export   |
|             |             |             |             | control     |
|             |             |             |             | standards.  |
+-------------+-------------+-------------+-------------+-------------+
| States      | Iraq defied | Iraq defied | Controls on | Controls on |
| conform to  | UN          | UN          | Iraq        | Iraq        |
| in          | inspectors. | inspectors. | receive     | receive     |
| ternational | Iran        | Iran        | in          | in          |
| non-pr      | continues   | continued   | ternational | ternational |
| oliferation | WMD         | WMD         | support.    | support.    |
| norms of    | d           | d           | Iraq and    | Iraq and    |
| behavior.   | evelopment. | evelopment. | Iran denied | Iran denied |
|             |             |             | WMD and     | WMD and     |
|             | North       | North       | miss        | miss        |
|             | Korean      | Korean      | ile-related | ile-related |
|             | moratorium  | moratorium  | te          | te          |
|             | on missile  | on missile  | chnologies. | chnologies. |
|             | testing and | testing and | Stronger    | Stronger    |
|             | freeze at   | freeze at   | export      | export      |
|             | Agreed      | Agreed      | controls    | controls    |
|             | Framework   | Framework   | throughout  | throughout  |
|             | continues,  | continues,  | region.     | region.     |
|             | but         | but         |             |             |
|             | continued   | continued   | Progress on | Progress on |
|             | missile     | missile     | verifiable  | verifiable  |
|             | exports.    | exports.    | constraints | constraints |
|             |             |             | on North    | on North    |
|             |             |             | Korea's     | Korea's     |
|             |             |             | missile     | missile     |
|             |             |             | policy;     | policy;     |
|             |             |             | n           | n           |
|             |             |             | egotiations | egotiations |
|             |             |             | on improved | on improved |
|             |             |             | imp         | imp         |
|             |             |             | lementation | lementation |
|             |             |             | of Agreed   | of Agreed   |
|             |             |             | Framework.  | Framework.  |
+-------------+-------------+-------------+-------------+-------------+
| Progress    | U           | Plutonium   | Russian     | Russian     |
| toward      | .S.-Russian | disposition | warhead     | warhead     |
| i           | agreement   | suspended;  | dismantling | dismantling |
| mplementing | on          | Plutonium   | continuing; | continuing; |
| fissile     | plutonium   | Production  | U           | U           |
| material    | disposition | Reactor     | .S.-Russian | .S.-Russian |
| projects.   | completed.  | Agreement   | Plutonium   | Plutonium   |
|             |             | suspended.  | Disposition | Disposition |
|             |             |             | underway.   | Agreement   |
|             |             |             |             | and         |
|             |             |             |             | financing   |
|             |             |             |             | structures  |
|             |             |             |             | for         |
|             |             |             |             | assistance  |
|             |             |             |             | completed.  |
+-------------+-------------+-------------+-------------+-------------+
| Number of   | Engaged     | Up to       | Institu     | Continued   |
| Russian/NIS | more than   | 40,000      | te-industry | expansion   |
| weapons     | 30,000      | scientists  | p           | of          |
| scientists  | scientists  | and several | artnerships | p           |
| redirected  | in peaceful | new         | expanded;   | artnerships |
| in civilian | civilian    | hi          | more        | and         |
| activities  | efforts;    | gh-interest | t           | technology  |
| and         | moving to   | institutes  | echnologies | markets.    |
| progress in | support     | now         | taken to    |             |
| developing  | sustainable | engaged.    | commercial  |             |
| self        | transition  |             | and         |             |
| -sustaining | from        |             | government  |             |
| civilian    | weapons to  |             | markets.    |             |
| alternative | civilian    |             |             |             |
| employment. | work.       |             |             |             |
+-------------+-------------+-------------+-------------+-------------+

+-----------------------------------------------------------------------+
| **Performance Goal 2:**                                               |
|                                                                       |
| Reduction in weapons of mass destruction stockpiles, materials,       |
| infrastructure; essential foreign support of toleration for U.S.      |
| weapons development.                                                  |
+-----------------------------------------------------------------------+

The U.S. has adopted a new security policy that both addresses new
threats and reflects the new, post-Cold War security environment. The
U.S. has decided to reduce its strategic offensive forces to the lowest
possible number consistent with our security interests and obligations.
The U.S. also decided to meet new threats by fielding defenses to reduce
the utility of rogue state ballistic missiles. By pursuing both
offensive force reductions and defensive force deployments through a
cooperative, orderly, and transparent process, we can reassure allies,
focus resources where the need is greatest, and discourage potential
adversaries without resorting to threats of annihilation.

Key to this new approach has been the establishment of a new strategic
framework with Russia to encompass reductions of strategic nuclear
arsenals and the deployment of limited missile defenses. In December
2001, the U.S. announced its intention to withdraw from the 1972 ABM
Treaty, allowing the U.S. to proceed with its missile defense plans and
programs. In May 2002, the U.S. and Russia signed the Moscow Treaty on
Strategic Offensive Reductions, mandating warhead reductions to between
1,700 and 2,200 for each side, about one-third of current levels.

In the coming year, the U.S. will seek NATO and Russian cooperation in
missile defense-related projects, and U.S.-Russian transparency measures
regarding strategic reductions.

Figure 10

Weapons of Mass Destruction Performance Goal 2: Key Indicators and
Projected Performance

+----------+-----------+-----------+-----------+-----------+-----------+
| **Key    | **1999    | **2000    | **2001    | **2002    | **2003    |
| Per      | B         | Actual**  | Actual**  | Target**  | Projected |
| formance | aseline** |           |           |           | Perf      |
| Ind      |           |           |           |           | ormance** |
| icator** |           |           |           |           |           |
+----------+-----------+-----------+-----------+-----------+-----------+
| S        | R         | Warheads  | R         | Final     | See       |
| trategic | eductions | reduced   | eductions | r         | "         |
| Arms     | c         | from      | and       | eductions | Promoting |
| Re       | ontinued. | 10,000 to | in        | completed | a New     |
| ductions |           | 6,000.    | spections | early.    | Strategic |
|          | Not       |           | completed |           | F         |
| START I  | ratified. | Ratified  | December  | Process   | ramework" |
|          |           | by        | 2001; all | agreed    | i         |
| STARTII  |           | Russia.   | strategic | for       | ndicator. |
|          |           |           | arms in   | further   |           |
|          |           |           | Ukraine   | re        |           |
|          |           |           | el        | ductions. |           |
|          |           |           | iminated; |           |           |
|          |           |           | Intermedi |           |           |
|          |           |           | ate-Range |           |           |
|          |           |           | Nuclear   |           |           |
|          |           |           | Forces    |           |           |
|          |           |           | (INF)     |           |           |
|          |           |           | treaty    |           |           |
|          |           |           | i         |           |           |
|          |           |           | nspection |           |           |
|          |           |           | regime    |           |           |
|          |           |           | c         |           |           |
|          |           |           | ompleted. |           |           |
|          |           |           |           |           |           |
|          |           |           | Former    |           |           |
|          |           |           | Soviet    |           |           |
|          |           |           | strategic |           |           |
|          |           |           | warheads  |           |           |
|          |           |           | down from |           |           |
|          |           |           | 6,860 to  |           |           |
|          |           |           | 5,988.    |           |           |
+----------+-----------+-----------+-----------+-----------+-----------+
|          | Note:     |           |           |           |           |
|          | This      |           |           |           |           |
|          | indicator |           |           |           |           |
|          | will be   |           |           |           |           |
|          | folded    |           |           |           |           |
|          | into      |           |           |           |           |
|          | "         |           |           |           |           |
|          | Promoting |           |           |           |           |
|          | a new     |           |           |           |           |
|          | Strategic |           |           |           |           |
|          | F         |           |           |           |           |
|          | ramework" |           |           |           |           |
|          | beginning |           |           |           |           |
|          | with      |           |           |           |           |
|          | 2003.     |           |           |           |           |
+----------+-----------+-----------+-----------+-----------+-----------+
| Missile  | Anti-     | U.S.      | Russians  | Undertake | See       |
| Defense  | Ballistic | decided   | accepted  | ap        | "         |
|          | Missile   | not to    | U.S.      | propriate | Promoting |
|          | (ABM)     | deploy a  | w         | actions   | a New     |
|          | Treaty in | limited   | ithdrawal | to        | Strategic |
|          | effect.   | national  | from AMB  | implement | F         |
|          |           | missile   | Treaty.   | U.S.      | ramework" |
|          |           | defense   |           | G         | i         |
|          |           | at this   | U.S.      | overnment | ndicator. |
|          |           | time.     | initiated | decisions |           |
|          |           |           | series of | about     |           |
|          |           |           | cons      | missile   |           |
|          |           |           | ultations | defense.  |           |
|          |           |           | about     |           |           |
|          |           |           | missile   |           |           |
|          |           |           | defense   |           |           |
|          |           |           | with      |           |           |
|          |           |           | allies,   |           |           |
|          |           |           | Russia,   |           |           |
|          |           |           | and       |           |           |
|          |           |           | China.    |           |           |
+----------+-----------+-----------+-----------+-----------+-----------+
|          | Note:     |           |           |           |           |
|          | This      |           |           |           |           |
|          | indicator |           |           |           |           |
|          | will be   |           |           |           |           |
|          | folded    |           |           |           |           |
|          | into      |           |           |           |           |
|          | "         |           |           |           |           |
|          | Promoting |           |           |           |           |
|          | a new     |           |           |           |           |
|          | Strategic |           |           |           |           |
|          | F         |           |           |           |           |
|          | ramework" |           |           |           |           |
|          | beginning |           |           |           |           |
|          | with      |           |           |           |           |
|          | 2003.     |           |           |           |           |
+----------+-----------+-----------+-----------+-----------+-----------+
| P        | New       | New       | New       | New       | U.S. and  |
| romoting | indicator | indicator | indicator | indicator | Russia    |
| a new    | in 2003.  | in 2003.  | in 2003.  | in 2003.  | work      |
| S        |           |           |           |           | towards   |
| trategic |           |           |           |           | co        |
| F        |           |           |           |           | operative |
| ramework |           |           |           |           | new       |
|          |           |           |           |           | strategic |
|          |           |           |           |           | rela      |
|          |           |           |           |           | tionship; |
|          |           |           |           |           | U.S.      |
|          |           |           |           |           | allies    |
|          |           |           |           |           | work      |
|          |           |           |           |           | coop      |
|          |           |           |           |           | eratively |
|          |           |           |           |           | with the  |
|          |           |           |           |           | U.S. on   |
|          |           |           |           |           | missile   |
|          |           |           |           |           | defense   |
|          |           |           |           |           | issues.   |
+----------+-----------+-----------+-----------+-----------+-----------+

+-----------------------------------------------------------------------+
| **Performance Goal 3:**                                               |
|                                                                       |
| #### Foreign governments work with us to strengthen existing          |
| agreements and negotiate new, multilateral nonproliferation and arms  |
| control commitments to reduce the weapons of mass destruction threat. |
+-----------------------------------------------------------------------+

Department officials pursue national security objectives by
strengthening and promoting adherence to a wide variety of treaties,
regimes, and norms of behavior through diplomatic contacts with other
governments, international institutions, and through public diplomacy
abroad. Key arms control regimes and organizations include the Nuclear
Non-Proliferation Treaty (NPT) and the International Atomic Energy
Agency (IAEA) concerning nuclear weapons, the Chemical Weapons
Convention (CWC) and Biological Weapons Convention (BWC) for WMD of
those types, and the Australia Group which combats proliferation of
chemical and biological weapons, the Missile Technology Control regime
(MTCR), and the Nuclear Suppliers Group (NSG), among others. The
Department seeks to buttress support for these systems aimed at stemming
the spread of nuclear, chemical, and biological weapons which pose such
a dire threat to American security.

Figure 11

Weapons of Mass Destruction Performance Goal 3: Key Indicators and
Projected Performance

+-------------+-------------+-------------+-------------+-------------+
| **Key       | **2000      | **2001      | **2002      | **2003      |
| Performance | Baseline**  | Actual**    | Target**    | Projected   |
| Indicator** |             |             |             | Pe          |
|             | **(1999 not |             |             | rformance** |
|             | a           |             |             |             |
|             | vailable)** |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Strengthen  | 2000 Review | 52          | NPT review  | NPT remains |
| Non-Pr      | Conference  | countries   | process     | strong;     |
| oliferation | showed wide | have signed | leading to  | review      |
| Treaty      | support for | IAEA        | 2005        | process     |
| (NPT) and   | NPT; 45     | safeguards  | Conference  | continues   |
| In          | countries   | protocol.   | begins      | with no     |
| ternational | have signed |             | smoothly. 5 | disruption. |
| Atomic      | IAEA        |             | to 10 more  | Several     |
| Energy      | safeguards  |             | states take | more states |
| Agency      | protocol.   |             | action on   | sign or     |
| (IAEA).     |             |             | IAEA        | bring into  |
|             |             |             | safeguards  | force IAEA  |
|             |             |             | protocol.   | safeguards  |
|             |             |             | IAEA        | protocol.   |
|             |             |             | strengthens | IAEA        |
|             |             |             | a           | a           |
|             |             |             | nti-nuclear | nti-nuclear |
|             |             |             | terrorism   | terrorism   |
|             |             |             | programs.   | program     |
|             |             |             |             | receives    |
|             |             |             |             | adequate    |
|             |             |             |             | funding and |
|             |             |             |             | expands     |
|             |             |             |             | assistance. |
+-------------+-------------+-------------+-------------+-------------+
| St          | 133 States  | 144 States  | Five        | Five        |
| rengthening | Parties.    | Parties.    | additional  | additional  |
| the         |             |             | States      | States      |
| Chemical    | Backlog of  | U.S. fully  | Parties.    | Parties.    |
| Weapons     | imp         | implemented |             |             |
| (CW)        | lementation | industry    | U.S. fully  | OPCW is     |
| Convention  | issues      | o           | implements  | well        |
|             | reduced;    | bligations. | industry    | managed.    |
|             | U.S. begins | Some        | o           | Russian CW  |
|             | i           | destruction | bligations. | destruction |
|             | mplementing | of Russian  | I           | rate        |
|             | industry    | stocks      | dentifiable | increases.  |
|             | o           | begun, but  | progress    | Challenge   |
|             | bligations; | Russia      | made toward | inspection  |
|             | discussions | requested   | Russian     | is          |
|             | with Russia | extension   | stockpile   | conducted.  |
|             | on          | of          | d           |             |
|             | destruction | deadlines.  | estruction. |             |
|             | issues      | OPCW budget | U.S. makes  |             |
|             | remain      | problems    | timely      |             |
|             | moribund.   | prevented   | payments to |             |
|             |             | full        | OPCW and    |             |
|             |             | execution   | OPCW gets   |             |
|             |             | of its      | out of      |             |
|             |             | respon      | financial   |             |
|             |             | sibilities. | crisis.     |             |
|             |             | U.S. began  |             |             |
|             |             | action to   |             |             |
|             |             | restore     |             |             |
|             |             | good        |             |             |
|             |             | management  |             |             |
|             |             | to OPCW.    |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Strengthen  | IAEA met    | Experts     | Drafting    | Conference  |
| the         | whether     | Group       | Group       | approves a  |
| Physical    | CPPNM       | recommends  | working on  | series of   |
| Protection  | should be   | "well       | reco        | amendments  |
| Convention  | revised or  | defined     | mmendations | to the      |
| (CPPNM).    | st          | amendment   | for         | CPPNM to    |
|             | rengthened. | to CPPNM    | co          | cover       |
|             | Experts     | for         | nsideration | nuclear     |
|             | made        | co          | by a        | material in |
|             | recom       | nsideration | revision    | domestic    |
|             | mendations. | by Drafting | conference. | use.        |
|             |             | Group."     |             |             |
+-------------+-------------+-------------+-------------+-------------+

+-----------------------------------------------------------------------+
| **Performance Goal 4:**                                               |
|                                                                       |
| #### Effective                                                        |
|  verification practices are in place; compliance with arms control an |
| d nonproliferation treaties, agreements and commitments are verified. |
+-----------------------------------------------------------------------+

The arms control nonproliferation regimes that the Department supports
are only as good as the extent to which they are obeyed and followed. It
is the responsibility of the Department to ensure that other nations are
observing their arms control and nonproliferation obligations. In an
area as important as blocking the spread of WMD, the Department must
verify that parties to agreements follow through on their commitments.
To this end, the Department is responsible for establishing verification
policy and ensuring the critical role which verification must play in
any real arms control regime. The Department also oversees the
verification aspects of disarmament agreements and commitments as they
are being formulated and negotiated; monitors compliance with all
existing arms control, nonproliferation, and disarmament agreements and
commitments; and coordinates the development of technology in support of
verification and compliance.

Figure 12

Weapons of Mass Destruction Performance Goal 4: Key Indicators and
Projected Performance

+-------------+-------------+-------------+-------------+-------------+
| **Key       | **2000      | **2001      | **2002      | **2003      |
| Performance | Baseline**  | Actual**    | Target**    | Projected   |
| Indicator** |             |             |             | Pe          |
|             | **(1999 not |             |             | rformance** |
|             | a           |             |             |             |
|             | vailable)** |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Effective   | Major       | A           | Effective   | Compliance  |
| v           | Biological  | lternatives | measures to | with        |
| erification | Weapons     | to          | investigate | c           |
| measures    | Convention  | convention  | compliance  | onventions' |
| for new     | (BWC)       | Protocol    | for all     | in          |
| treaties.   | issues      | under       | conventions | vestigation |
|             | unresolved. | d           | e           | and         |
|             |             | evelopment. | stablished. | ve          |
|             | START III   |             |             | rification. |
|             | provisions  | Shelved;    | Design and  |             |
|             | under       | withdrawal  | begin       | Continued   |
|             | d           | from ABM;   | imp         | imp         |
|             | evelopment. | new         | lementation | lementation |
|             |             | r           | of          | of          |
|             |             | elationship | independent | Plutonium   |
|             |             | with        | nuclear     | Disposition |
|             |             | Russia.     | testing     | Agreement.  |
|             |             |             | monitoring  |             |
|             |             |             | system.     |             |
+-------------+-------------+-------------+-------------+-------------+
| Timely      | New         | Ukraine     | Sign        | Begin       |
| trea        | agreements  | joined in   | agreement   | p           |
| ty-mandated | signed with | new nuclear | with        | reparations |
| comm        | Kazakhstan  | reduction   | Kazakhstan; | for         |
| unications. | and         | agreements. | successful  | emergency   |
|             | Ukraine.    |             | exchanges   | back-up     |
|             |             |             | with        | com         |
|             |             |             | Kazakhstan  | munications |
|             |             |             | and         | outside of  |
|             |             |             | Ukraine;    | Washington  |
|             |             |             | chemical    | D.C.        |
|             |             |             | weapons     | he          |
|             |             |             | network     | adquarters. |
|             |             |             | enables     |             |
|             |             |             | full        |             |
|             |             |             | support of  |             |
|             |             |             | treaty      |             |
|             |             |             | impl        |             |
|             |             |             | ementation. |             |
+-------------+-------------+-------------+-------------+-------------+

+-----------------------------------------------------------------------+
| **Performance Goal 5:**                                               |
|                                                                       |
| #### Nuclear                                                          |
| cooperation serves safety, environmental, and nonproliferation goals. |
+-----------------------------------------------------------------------+

The Department strives to promote the role of safe nuclear energy in
sustainable development and ensure that the U.S. is seen as a reliable
and valuable partner in international nuclear cooperation. Effective
cooperation policies also reduce proliferation risks and help to
safeguard the global environment from nuclear accidents and improperly
managed nuclear waste from Soviet-era facilities. By ensuring that the
U.S. is viewed as a dependable and beneficial partner in international
nuclear cooperation, the Department intends to promote the adoption of
high safety standards, prevent significant environmental damage, in
particular from operating unsafe Soviet-era reactors, and encourage the
U.S. nuclear industry in its endeavors.

Figure 13

Weapons of Mass Destruction Performance Goal 5: Key Indicators and
Projected Performance

+-------------+-------------+-------------+-------------+-------------+
| **Key       | **2000      | **2001      | **2002      | **2003      |
| Performance | Baseline**  | Actual**    | Target**    | Projected   |
| Indicator** |             |             |             | Pe          |
|             | **(1999 not |             |             | rformance** |
|             | a           |             |             |             |
|             | vailable)** |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Reactor     | Reactor     | Several NIS | More plants | Closure of  |
| closures    | closures    | plants      | closed;     | key plants  |
| and nuclear | agreed for  | closed; G-7 | in          | in former   |
| waste       | several in  | adopted     | ternational | Eastern     |
| im          | NIS and     | goal of     | community   | Bloc; G-7   |
| provements. | Eastern     | pressuring  | funds       | and Russia  |
|             | Europe;     | Russia to   | programs to | agree to    |
|             | n           | close       | deal with   | new reactor |
|             | egotiations | unsafe      | Russian     | closure     |
|             | held on     | reactors.   | nuclear     | agenda;     |
|             | nuclear     |             | waste       | in          |
|             | waste       |             | problems.   | ternational |
|             | framework   |             |             | community   |
|             | agreement.  |             |             | funds       |
|             |             |             |             | programs to |
|             |             |             |             | deal with   |
|             |             |             |             | Russian     |
|             |             |             |             | nuclear     |
|             |             |             |             | waste       |
|             |             |             |             | problems.   |
+-------------+-------------+-------------+-------------+-------------+
| Extension   | U.S. had    | U.S.-China  | Peaceful    | Peaceful    |
| of benefits | nuclear     | discussions | nuclear     | nuclear     |
| of nuclear  | cooperation | made        | cooperation | cooperation |
| cooperation | agreements  | substantial | with China  | with China  |
| to U.S.     | with IAEA,  | progress;   | proceeds    | proceeds    |
| partners    | EU, and 25  | GIF         | smoothly;   | smoothly;   |
| and         | other       | s           | GIF         | GIF         |
| effective   | nations;    | uccessfully | proceeds as | proceeds as |
| imp         | new nuclear | drafted     | a viable    | a viable    |
| lementation | technology  | approved;   | forum for   | forum for   |
| of          | transfers   | no          | reactor     | reactor     |
| provisions  | to China    | significant | c           | c           |
| of existing | stalled;    | issues      | ooperation; | ooperation; |
| cooperation | U.S.        | about       | no security | no security |
| agreements. | conducted   | security of | problems    | problems    |
|             | regular     | U.S.-origin | arise from  | arise from  |
|             | co          | nuclear     | U.S.-origin | U.S.-origin |
|             | nsultations | materials;  | nuclear     | nuclear     |
|             | on          | U.S.        | material;   | material.   |
|             | protection  | continued   | other       |             |
|             | of          | as reliable | cooperation |             |
|             | U.          | partner in  | programs    |             |
|             | S.-supplied | nuclear     | proceed     |             |
|             | nuclear     | c           | normally.   |             |
|             | material;   | ooperation. |             |             |
|             | U.S.        |             |             |             |
|             | reached     |             |             |             |
|             | necessary   |             |             |             |
|             | agreements  |             |             |             |
|             | on security |             |             |             |
|             | a           |             |             |             |
|             | rrangements |             |             |             |
|             | for         |             |             |             |
|             | transfer    |             |             |             |
|             | from Europe |             |             |             |
|             | to Japan;   |             |             |             |
|             | Generation  |             |             |             |
|             | IV          |             |             |             |
|             | In          |             |             |             |
|             | ternational |             |             |             |
|             | Forum (GIF) |             |             |             |
|             | on          |             |             |             |
|             | innovative  |             |             |             |
|             | reactor     |             |             |             |
|             | designs     |             |             |             |
|             | begun well. |             |             |             |
+-------------+-------------+-------------+-------------+-------------+

+-----------------------------------------------------------------------+
| ## Strategic Goal 3: Countering Terrorism                             |
|                                                                       |
| Reduce international terrorist attacks, especially on the United      |
| States and its citizens.                                              |
+-----------------------------------------------------------------------+

The horrific terrorist attacks on the World Trade Center and the
Pentagon on September 11, 2001 dramatically brought home to Americans
the threat of international terrorism. The President declared a war on
terrorism that dramatically affected the scope and intensity of the
Department's counterterrorism (CT) agenda. As the lead agency
coordinating U.S. CT policy and programs overseas, the Department
cooperates with other government agencies to use all available tools to
counter the terrorist threat. These tools include international
diplomacy, law enforcement, intelligence collection and sharing,
military actions, and programs to strengthen the political will and
capabilities of friendly states. We are placing a new emphasis on
curbing terrorists' lifeblood -- their funding and financial assets. A
major international effort to this end is underway, using United Nations
Security Council Resolutions (UNSCR), Presidential Executive Orders,
international conventions, the designation of foreign terrorist
organizations, and financial investigations.

+-----------------------------------------------------------------------+
| **Performance Goal 1:**                                               |
|                                                                       |
| #### Reduced danger of terrorist attacks on American citizens         |
| and interests; effective international cooperation and efforts curtai |
| l the capabilities of would-be terrorists and punish known offenders. |
+-----------------------------------------------------------------------+

Developing political will and vigorous counterterrorism initiatives is
the cornerstone of the Department's efforts to achieve its goal of
combating terrorism as detailed above. As a result of these efforts,
state sponsored terrorism has decreased; however, informal terror
networks have grown. The Department's strategy is to build a new
international coalition to combat terrorism and expand our programs to
meet the new requirements. Some recent examples include: enforcement of
UNSCR 1373, which requires all member states to suppress and prevent
terrorism; efforts by the G-8 and other countries to freeze terrorist
assets; and new initiatives by the U.S.-Russia Counterterrorism Working
Group. Over the next year, the Department seeks to sustain the political
will necessary to keep CT at the forefront of the global agenda and
assist states in building their commitment and capacity to combat
terrorism.

**Figure 15**

Countering Terrorism Performance Goal 1: Key Indicators and Projected
Performance

+-------------+-------------+------------+---+--------------+------------+
| **Key       | **2000      | ####### 2  |   | **2002       | **2003     |
| Performance | Baseline**  | 001 Actual |   | Target**     | Projected  |
| Indicator** |             |            |   |              | Per        |
|             |             |            |   |              | formance** |
+-------------+-------------+------------+---+--------------+------------+
| Number of   | Aggressive  | 9          |   | 13           | 25         |
| completed   | engagement  |            |   |              |            |
| bilateral   | was not in  |            |   |              |            |
| and         | place.      |            |   |              |            |
| m           |             |            |   |              |            |
| ultilateral |             |            |   |              |            |
| CT          |             |            |   |              |            |
| co          |             |            |   |              |            |
| nsultations |             |            |   |              |            |
| completed.  |             |            |   |              |            |
+-------------+-------------+------------+---+--------------+------------+
| Number of   | The United  | The United |   | 157 states   | 96 states  |
| states      | Nations was | Nations    |   | are          | im         |
| i           | not         | Counte     |   | currently    | plementing |
| mplementing | monitoring  | rterrorism |   | implementing | UNSCR      |
| United      | imp         | Committee  |   | UNSCR 1373.  | 1373.      |
| Nations     | lementation | (CTC) was  |   |              |            |
| Security    | in 2000.    | e          |   |              |            |
| Council     |             | stablished |   |              |            |
| Resolution  |             | to monitor |   |              |            |
| (UNSCR)     |             | and assist |   |              |            |
| 1373.       |             | members in |   |              |            |
|             |             | im         |   |              |            |
|             |             | plementing |   |              |            |
|             |             | UNSCR      |   |              |            |
|             |             | 1373.      |   |              |            |
+-------------+-------------+------------+---+--------------+------------+
|             | Note: The   |            |   |              |            |
|             | 2003 target |            |   |              |            |
|             | is lower    |            |   |              |            |
|             | than the    |            |   |              |            |
|             | actual      |            |   |              |            |
|             | number of   |            |   |              |            |
|             | i           |            |   |              |            |
|             | mplementing |            |   |              |            |
|             | states in   |            |   |              |            |
|             | 2002        |            |   |              |            |
|             | because the |            |   |              |            |
|             | CTC is      |            |   |              |            |
|             | increasing  |            |   |              |            |
|             | the         |            |   |              |            |
|             | stringency  |            |   |              |            |
|             | of the      |            |   |              |            |
|             | criteria in |            |   |              |            |
|             | an effort   |            |   |              |            |
|             | to          |            |   |              |            |
|             | challenge   |            |   |              |            |
|             | states to   |            |   |              |            |
|             | take more   |            |   |              |            |
|             | practical   |            |   |              |            |
|             | steps       |            |   |              |            |
|             | towards     |            |   |              |            |
|             | impl        |            |   |              |            |
|             | ementation. |            |   |              |            |
|             | As a        |            |   |              |            |
|             | result, the |            |   |              |            |
|             | number of   |            |   |              |            |
|             | states in   |            |   |              |            |
|             | compliance  |            |   |              |            |
|             | with the    |            |   |              |            |
|             | imp         |            |   |              |            |
|             | lementation |            |   |              |            |
|             | criteria is |            |   |              |            |
|             | expected to |            |   |              |            |
|             | decrease.   |            |   |              |            |
+-------------+-------------+------------+---+--------------+------------+
| Number of   | 117 ATA     | 135 ATA    | 1 |              | 210 ATA    |
| ATA courses | courses     | courses    | 6 |              | courses    |
| provided to | provided to | provided   | 0 |              | provided   |
| priority    | 42 states.  | to 49      | A |              | to 60      |
| states.     |             | states.    | T |              | states.    |
|             | 5           |            | A |              |            |
| Number of   |             | 14         | c |              | 210        |
| program     |             |            | o |              |            |
| reviews     |             |            | u |              |            |
| that are    |             |            | r |              |            |
| conducted   |             |            | s |              |            |
| 18 months   |             |            | e |              |            |
| after the   |             |            | s |              |            |
| training.   |             |            | p |              |            |
|             |             |            | r |              |            |
|             |             |            | o |              |            |
|             |             |            | v |              |            |
|             |             |            | i |              |            |
|             |             |            | d |              |            |
|             |             |            | e |              |            |
|             |             |            | d |              |            |
|             |             |            | t |              |            |
|             |             |            | o |              |            |
|             |             |            | 4 |              |            |
|             |             |            | 1 |              |            |
|             |             |            | s |              |            |
|             |             |            | t |              |            |
|             |             |            | a |              |            |
|             |             |            | t |              |            |
|             |             |            | e |              |            |
|             |             |            | s |              |            |
|             |             |            | . |              |            |
|             |             |            |   |              |            |
|             |             |            | 1 |              |            |
|             |             |            | 6 |              |            |
|             |             |            | 0 |              |            |
+-------------+-------------+------------+---+--------------+------------+
| Degree of   | Deployed    | Deployed   | N |              | The FEST   |
| support for | the Foreign | the FEST   | o |              | deploys to |
| Combatant   | Emergency   | to 2 of    | e |              | p          |
| Commanders' | Support     | the        | x |              | articipate |
| CT exercise | Team (FEST) | Combatant  | e |              | in 2 of    |
| programs.   | to 2 of the | C          | r |              | the        |
|             | Combatant   | ommanders' | c |              | Combatant  |
|             | Commanders' | Int        | i |              | C          |
|             | In          | ernational | s |              | ommanders' |
|             | ternational | CT         | e |              | Int        |
|             | CT          | exercises  | s |              | ernational |
|             | exercises.  | and the    | s |              | CT         |
|             |             | Chairman   | c |              | exercises  |
|             |             | of the     | h |              | (1.        |
|             |             | Joint      | e |              | Chairman   |
|             |             | Chiefs of  | d |              | of the     |
|             |             | Staff      | u |              | CJCS'      |
|             |             | (CJCS)     | l |              | no-notice  |
|             |             | no-notice  | e |              | exercise;  |
|             |             | exercise.  | d |              | 2.         |
|             |             |            | b |              | National   |
|             |             |            | e |              | Level Top  |
|             |             |            | c |              | Officials  |
|             |             |            | a |              | (TOPOFF)   |
|             |             |            | u |              | Exercise.) |
|             |             |            | s |              |            |
|             |             |            | e |              |            |
|             |             |            | o |              |            |
|             |             |            | f |              |            |
|             |             |            | O |              |            |
|             |             |            | p |              |            |
|             |             |            | e |              |            |
|             |             |            | r |              |            |
|             |             |            | a |              |            |
|             |             |            | t |              |            |
|             |             |            | i |              |            |
|             |             |            | o |              |            |
|             |             |            | n |              |            |
|             |             |            | E |              |            |
|             |             |            | n |              |            |
|             |             |            | d |              |            |
|             |             |            | u |              |            |
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|             |             |            | n |              |            |
|             |             |            | g |              |            |
|             |             |            | F |              |            |
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|             |             |            | d |              |            |
|             |             |            | o |              |            |
|             |             |            | m |              |            |
|             |             |            | . |              |            |
|             |             |            |   |              |            |
|             |             |            | C |              |            |
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+-------------+-------------+------------+---+--------------+------------+
| Timeliness  | 29 groups   | 31 groups  | 3 |              | 100% of    |
| of the      | designated  | designated | a |              | FTO        |
| review of   | as FTO's    | as FTO's   | d |              | reviews    |
| groups      | pursuant to | pursuant   | d |              | completed  |
| designated  | US law.     | to US law. | i |              | within a   |
| as Foreign  |             |            | t |              | year; no   |
| Terrorist   |             |            | i |              | new        |
| Or          |             |            | o |              | addition   |
| ganizations |             |            | n |              | pending    |
| (FTO's)     |             |            | a |              | for more   |
| pursuant to |             |            | l |              | than 4     |
| U.S. law.   |             |            | o |              | months.    |
|             |             |            | r |              |            |
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+-------------+-------------+------------+---+--------------+------------+

+-----------------------------------------------------------------------+
| ## Strategic Goal 4: Open Markets                                     |
|                                                                       |
| Open world markets to increase trade and free the flow of goods,      |
| services, and capital.                                                |
+-----------------------------------------------------------------------+

The U.S. is the world's largest exporter of goods as well as the leading
exporter of intellectual property and financial, civil aviation, and
transportation services. Exports create jobs for Americans. Imports to
the U.S. contribute to a higher standard of living for all Americans by
providing goods and services at lower cost. Over the past decade outward
U.S. investment grew three times faster than U.S. exports, generating
\$230 billion in related exports in 1999 alone. Maintaining an open and
strong international economy is of paramount importance to the U.S., and
is also of great benefit to developing countries. This common interest
strengthens international peace and stability.

+-----------------------------------------------------------------------+
| #### Performance Goal 1:                                              |
|                                                                       |
| A robust international framework for free trade in goods, services    |
| and flows of investment ensures the openness of international markets |
| for U.S. technologies.                                                |
+-----------------------------------------------------------------------+

The Department will strengthen the existing framework by furthering free
trade through regional, multilateral, and bilateral trade talks leading
to liberalized trade in agricultural and other goods and services,
including market-opening aviation services. The Department\'s missions
abroad will provide critical support to trade talks in all these forums
and to our public diplomacy efforts. The Department will play an active
role in efforts to conclude the new round of WTO negotiations, an FTAA
and free trade agreements (FTA) with Chile and Singapore, and to launch
new FTA with other trading partners. The Department will continue to
pursue dialogue with the EU to resolve existing trade disputes and
prevent future ones from erupting. Specific focus will be directed to
establishing sound international rules on foreign investment through
negotiation of bilateral investment treaties and investment chapters of
free trade agreements to protect American investors and combat unfair
foreign expropriation of American investments abroad. Investment
dialogues with key regional economies will promote open investment
policies linked to reform of each country\'s legal, institutional and
regulatory framework.

Improvements in WTO rules and procedures, and reforms in other
international institutions, such as the International Monetary Fund
(IMF) and the World Bank, that play a key role in the system of
international trade also will be pursued. Finally, the Department will
work to promote an international science-based approach to biotechnology
to prevent unfair foreign efforts to close other markets to U.S. biotech
products.

Figure 17

Open Markets Performance Goal 1: Key Indicators and Projected
Performance

+---------------+------------+------------+--------------+-------------+
| **Key         | **2000     | **2001     | **2002       | **2003      |
| Performance   | Baseline** | Actual**   | Target**     | Projected   |
| Indicator**   |            |            |              | Pe          |
|               | **(1999    |            |              | rformance** |
|               | not        |            |              |             |
|               | av         |            |              |             |
|               | ailable)** |            |              |             |
+---------------+------------+------------+--------------+-------------+
| Status of     | Initial    | WTO        | Consensus    | New trade   |
| market        | ne         | members    | reached to   | rounds      |
| opening       | gotiations | completed  | launch new   | begin.      |
| negotiations  | underway   | p          | trade        |             |
| in the World  | on         | reliminary | n            |             |
| Trade         | a          | work to    | egotiations. |             |
| Organization. | griculture | begin      |              |             |
|               | and        | ne         |              |             |
|               | services.  | gotiations |              |             |
|               |            | in January |              |             |
|               |            | 2002.      |              |             |
+---------------+------------+------------+--------------+-------------+
| Status of     | Launched   | Expanded   | Continue     | Expand      |
| Multilateral  | analytical | investment | investment   | bilateral   |
| Investment    | study of   | outreach   | policy       | investment  |
| Policy        | investment | work with  | dialogues    | policy      |
| Dialogue      | policy     | OECD       | and related  | dialogues   |
| under the     | changes in | members    | OECD         | with China, |
| Organization  | 21^st^     | and        | outreach     | Japan,      |
| for Economic  | century.   | nonmember  | events with  | Peru,       |
| Cooperation   | Expanded   | countries. | China and    | Russia and  |
| and           | adherence  | Latvia,    | Russia.      | Turkey;     |
| Development   | to OECD    | Israel,    |              | OECD        |
| (OECD).       | investment | Singapore, |              | continues   |
|               | de         | and        |              | work with   |
|               | claration. | Venezuela  |              | Russia and  |
|               |            | in         |              | China to    |
|               |            | pipeline   |              | implement   |
|               |            | towards    |              | policy      |
|               |            | adherence  |              | recom       |
|               |            | to         |              | mendations. |
|               |            | de         |              |             |
|               |            | claration. |              |             |
+---------------+------------+------------+--------------+-------------+
| Status of     | Continued  | Continued  | Increase     | Increase    |
| Bilateral     | d          | d          | number of    | number of   |
| Investment    | iscussions | iscussions | treaties     | treaties    |
| Treaty (BIT)  | with 25    | with 25    | signed by    | signed by   |
| negotiations. | countries  | countries  | four (of the | 2.          |
|               | and active | and active | 12 in active |             |
|               | ne         | ne         | ne           |             |
|               | gotiations | gotiations | gotiations). |             |
|               | with 12.   | with 12.   |              |             |
+---------------+------------+------------+--------------+-------------+
| Status of     | Ne         | Ne         | Implement    | Complete    |
| negotiations  | gotiations | gotiations | Jordan FTA.  | and         |
| on bilateral  | on Free    | initiated  | Negotiations | implement   |
| Free Trade    | Trade Area | with Chile | with Chile   | Chile and   |
| Agreements    | of the     | and        | and          | Singapore   |
| (FTA).        | Americas   | Singapore. | Singapore    | FTA and     |
|               | ongoing.   | Congress   | ongoing.     | begin       |
|               |            | approves   | Identify     | n           |
|               |            | FTA with   | candidates   | egotiations |
|               |            | Jordan.    | for FTA      | with new    |
|               |            |            | n            | countries.  |
|               |            |            | egotiations. |             |
+---------------+------------+------------+--------------+-------------+
| Number of     | Bilateral  | Five       | Four         | Four        |
| market        | Open Skies | bilateral  | bilateral    | bilateral   |
| opening       | agreements | Open Skies | Open Skies   | Open Skies  |
| t             | in place   | agreements | agreements   | (or         |
| ransportation | with 47    | concluded. | concluded.   | M           |
| agreements in | countries. | Mu         | One country  | ultilateral |
| place.        |            | ltilateral | joins        | accessions) |
|               |            | Open Skies | Multilateral | concluded.  |
|               |            | agreement  | Open Skies   | Two         |
|               |            | with four  | agreement.   | non-Open    |
|               |            | countries  | Two non-Open | Skies       |
|               |            | concluded. | Skies        | agreements  |
|               |            |            | agreements   | concluded.  |
|               |            |            | concluded.   |             |
+---------------+------------+------------+--------------+-------------+

+-----------------------------------------------------------------------+
| #### Performance Goal 2:                                              |
|                                                                       |
| #### Developing and transitio                                         |
| nal economies are more fully integrated in the world economic system. |
+-----------------------------------------------------------------------+

A second strategy is to integrate developing countries and those still
making the transition from non-market economies into the worldwide open
market system. While American businesses, workers, farmers, and
consumers all benefit from other countries accepting and living up to
international trade norms (such as openness, transparency, reciprocity,
and deregulation) and agreements, these other countries also benefit by
opening their markets and allowing them to function more efficiently.
The World Bank, for example, has estimated that the worldwide tariff
cuts agreed under the Uruguay Round are equivalent to a global tax cut
of \$100-\$200 billion annually. International adherence to the open
market rules embodied in the WTO helped countries to overcome the 1998
financial crisis and prevented the sort of protectionist policies many
pursued in the Great Depression, policies that only worsened the
terrible world economic and political situation.

The Department will work to broaden WTO membership and the commitment of
new Members to WTO rules and disciplines. Now that China and Taiwan have
joined the WTO, the Department will focus on bringing in Saudi Arabia,
the Ukraine, and Russia. Integrating these countries into the world
market and coordinating with international institutions will facilitate
working with them and other countries, an effort that will help
Americans achieve broader access to these markets. The African Growth
and Opportunity Act (AGOA), the Caribbean Basin Trade Partnership Act
(CBTPA), and the Andean Trade Preferences Act (ATPA) are good examples
of programs that promote increased trade between regions. These programs
were recently augmented by legislation, and the Department will work to
see that implementation of the new benefits goes smoothly.

**Note:** Indicators for this performance goal are included in Figure 17
(Open Markets Performance Goal 1: Key Indicators and Projected
Performance).

+-----------------------------------------------------------------------+
| ## Strategic Goal 5: U.S. Exports                                     |
|                                                                       |
| Expand U.S. exports to \$1.2 trillion early in the 21^st^ century.    |
+-----------------------------------------------------------------------+

In addition to opening markets for U.S. goods and services, advancing
the U.S.'s economic prosperity requires direct support to companies that
are actively engaged in exporting and conducting business abroad. This
involves advocating on behalf of U.S. businesses and providing a variety
of other services such as defending the rights of U.S. businesses
overseas, and leading the effort to fight corruption, promote solid
investment regimes, and encourage corporate responsibility.

+-----------------------------------------------------------------------+
| #### Performance Goal 1:                                              |
|                                                                       |
| #### U.S. companies compete successfully for worldwide sales.         |
+-----------------------------------------------------------------------+

The impact of September 11 on the U.S. economy and the economies of
other nations help illustrate the linkage of trade to global prosperity,
and well being. Although the economic effects of this tragedy are
expected to be relatively short term, the immediate impact was negative.
Total U.S. exports of goods decreased from \$756 billion in 2000 to
\$751 billion in 2001, while exports of services increased slightly from
\$289 billion to \$294 billion. Total exports of goods and services
remained static at \$1.045 trillion, far short of the goal established
in 1997 of \$1.2 trillion. As the U.S. economy begins to recover, the
Department will continue to promote U.S. interests overseas through
multilateral negotiations (via the WTO), regional negotiations such as
the Free Trade Area of the Americas, bilateral agreements with
individual countries, advocacy on individual commercial trade and
investment disputes, and promotion of U.S. agricultural exports,
including biotechnology.

Figure 18

U.S. Exports Performance Goal 1: Key Indicators and Projected
Performance

+-------------+-------------+-------------+-------------+-------------+
| **Key       | **2000      | **2001      | **2002      | **2003      |
| Performance | Baseline**  | Actual**    | Target**    | Projected   |
| Indicator** |             |             |             | Pe          |
|             | **(1999 not |             |             | rformance** |
|             | a           |             |             |             |
|             | vailable)** |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Number of   | 160         | 228         | 300         | 400         |
| commercial  |             |             |             |             |
| outreach    | 48          | 63          | 75          | 90          |
| events:     |             |             |             |             |
|             | 50          | 118         | 100         | 125         |
| Business    |             |             |             |             |
| meeting     |             |             |             |             |
| s/briefings |             |             |             |             |
|             |             |             |             |             |
| Business    |             |             |             |             |
| conferences |             |             |             |             |
|             |             |             |             |             |
| Companies   |             |             |             |             |
| provided    |             |             |             |             |
| advocacy    |             |             |             |             |
| services    |             |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Oil and gas | Exports of  | Exports in  | New energy  | New energy  |
| sector      | oil and gas | sector grew | investment  | investment  |
| exports.    | field       | by 25.6     | in Middle   | in Middle   |
|             | equipment   | percent for | East, Latin | East, Latin |
|             | steady in   | the first   | America,    | America,    |
|             | response to | 9-month     | and the     | and the     |
|             | a firming   | period of   | Caspian     | Caspian     |
|             | of world    | 2001 over   | Region      | Region      |
|             | oil prices  | the same    | resulting   | resulting   |
|             | and some    | period last | in          | in          |
|             | recovery in | year.       | increased   | increased   |
|             | global      |             | flows of    | flows of    |
|             | exploration |             | energy      | energy      |
|             | and         |             | equipment   | equipment   |
|             | production  |             | and service | and service |
|             | ex          |             | exports     | exports     |
|             | penditures. |             | from U.S.   | from U.S.   |
|             |             |             | firms.      | firms.      |
+-------------+-------------+-------------+-------------+-------------+
| A           | \$50.9      | \$53.0      | \$54.5      | \$56.1      |
| gricultural |             |             |             |             |
| exports (in |             |             |             |             |
| billions).  |             |             |             |             |
+-------------+-------------+-------------+-------------+-------------+

+-----------------------------------------------------------------------+
| ## Strategic Goal 6: Global Economic Growth                           |
|                                                                       |
| Increase global economic growth and stability.                        |
+-----------------------------------------------------------------------+

Global macroeconomic conditions have a significant impact on the ability
of the U.S. to sustain stable economic growth with low inflation and
unemployment. U.S. export, income, and employment levels will benefit
from faster growth and greater economic stability worldwide.

The Department will continue to use its combination of economic and
country-specific expertise to encourage other nations to adopt and
maintain market-oriented economic policies that stimulate economic
growth. Department officials in Washington and in our missions abroad
will work closely with the IMF, World Bank, other regional and
multilateral organizations, and foreign governments to support sound
macroeconomic policies that lay the groundwork for growth. The
Department will strongly support more selective and more effective
conditioning of IMF and World Bank activity on implementation of
economic reform programs.

+-----------------------------------------------------------------------+
| #### Performance Goal 1:                                              |
|                                                                       |
| #### Countries around the globe adopt and maintain growth-oriente     |
| d economic policies; economic crises are less likely and less severe. |
+-----------------------------------------------------------------------+

Department officers will use bilateral contacts, international
institutions, and public affairs efforts, to encourage foreign
governments to privatize state-owned companies, eliminate unnecessary
regulations, reduce trade barriers, battle corruption, and improve the
investment environment by encouraging rule of law and greater
transparency. Progress in these areas leads to benefits on many fronts,
and creates the conditions for sustained economic growth.

The Department will continue to work closely with the Treasury
Department to strengthen international financial systems. The Department
strongly supports Treasury\'s efforts to increase transparency and
information sharing among international financial institutions. The
Department continues to play a vital role in working with individual
governments - particularly in developing and transitional economies - in
support of better-regulated, more transparent financial sectors,
essential to reducing those countries\' vulnerability to financial
crises.

Making effective and appropriate use of science and technology will be
key to ensuring strong, sustained economic growth in the decades ahead.
The Department will play a major role in promoting the effective use of
science and technology abroad, including agricultural biotechnology, to
enhance growth and stability.

In the information technology arena, the Department will focus on
unlocking the global potential of electronic commerce by promoting
liberalization of its underlying economic sectors: telecommunications,
transportation, customs and product delivery systems. The Department
will work closely with the U.S. Trade Representative to promote
multilateral and bilateral trade liberalization in telecommunications
and e-commerce. The Department will also urge foreign governments to
eliminate monopolies, high access charges, and unnecessary regulations
in these sectors and encourage market-based competition. The Department
will depend heavily on public diplomacy to get out its messages.

Figure 19

Global Economic Growth Performance Goal 1: Key Indicators and Projected
Performance

+-----------+-----------+-----------+-----------+-----------+-----------+
| **Key     | **1999    | **2000    | **2001    | **2002    | **2003    |
| Pe        | B         | Actual**  | Actual**  | Target**  | Projected |
| rformance | aseline** |           |           |           | Perf      |
| In        |           |           |           |           | ormance** |
| dicator** |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Global    | 3.4%      | 4.2%      | 2.4%      | 4.0%      | 4.0%      |
| Gross     |           |           |           |           |           |
| Domestic  |           |           | (slowed   |           |           |
| Product   |           |           | by impact |           |           |
| growth.   |           |           | of        |           |           |
|           |           |           | September |           |           |
|           |           |           | 11)       |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Key       | Brazil,   | I         | I         | I         | I         |
| countries | S. Korea, | ndonesia, | ndonesia, | ndonesia, | ndonesia, |
| imp       | I         | Brazil,   | A         | A         | A         |
| lementing | ndonesia, | S. Korea, | rgentina, | rgentina, | rgentina, |
| IMF       | Thailand, | A         | Brazil,   | Brazil,   | Brazil,   |
| reform    | Russia,   | rgentina, | S. Korea, | Uruguay,  | Uruguay,  |
| programs. | Ukraine.  | Thailand. | Nigeria,  | S. Korea, | S. Korea, |
|           |           |           | Russia,   | Nigeria,  | Nigeria,  |
|           |           |           | Thailand, | Russia,   | Russia,   |
|           |           |           | Ukraine,  | Thailand, | Thailand, |
|           |           |           | Pakistan, | Ukraine,  | Ukraine,  |
|           |           |           | Turkey    | Pakistan, | Pakistan, |
|           |           |           | implement | Turkey,   | Turkey,   |
|           |           |           | IMF       | Y         | Y         |
|           |           |           | reform    | ugoslavia | ugoslavia |
|           |           |           | programs. | implement | implement |
|           |           |           |           | IMF       | IMF       |
|           |           |           | Nigeria   | reform    | reform    |
|           |           |           | failed to | programs. | programs. |
|           |           |           | implement |           |           |
|           |           |           | IMF       |           |           |
|           |           |           | reform.   |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Number of | No data   | 3         | Data not  | +5        | +10       |
| countries | a         |           | yet       |           |           |
| lib       | vailable. |           | a         |           |           |
| eralizing |           |           | vailable. |           |           |
| regimes   |           |           |           |           |           |
| for       |           |           |           |           |           |
| fac       |           |           |           |           |           |
| ilitating |           |           |           |           |           |
| e-com/    |           |           |           |           |           |
| Internet. |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+

+-----------------------------------------------------------------------+
| ## Strategic Goal 7: Economic Development                             |
|                                                                       |
| Promote broad-based growth in developing and transitional economies.  |
+-----------------------------------------------------------------------+

Many developing countries and former Communist countries are reluctant
to adopt open, market-oriented economic policies. Well-designed,
transparent, and fair economic policies in those countries would attract
private investment and generate more rapid and equitable economic
growth. Government officials in the developing and transitional
countries know that private foreign capital flows to developing
countries far exceed the flows of official development assistance.
Although the countries realize that foreign investment is essential to
accelerate growth for their burgeoning young populations, they are often
reluctant to implement market-oriented policies for fear of competition
or to protect certain companies and individuals that benefit from the
existing restrictive policies.

It is clearly in our national interest to help the developing and former
Communist countries to make the transition to market-based, competitive
economies. World Bank and other studies show that the best way for a
country to reduce poverty within its population is to generate rapid
economic growth. To the extent that such growth can be generated by
private investment, the countries in development and transition will
become more competitive and more integrated into the world economy.
Economic development will facilitate transitions to and consolidation of
democracy as well.

+-----------------------------------------------------------------------+
| #### Performance Goal 1:                                              |
|                                                                       |
| #### Developin                                                        |
| g and transitional economies experience broad-based economic growth.  |
+-----------------------------------------------------------------------+

The Department will play a critical role in coordinating U.S. economic
policies toward developing and transitional countries. Department
officials at our missions and in Washington will work with the
governments of these countries and with international institutions to
help reduce poverty, accelerate economic growth, and implement open -
market policies.

The three most effective tools at our disposal for reducing poverty and
accelerating growth in developing countries are the global debt
reduction program, the Heavily Indebted Poor Country (HIPC) initiative,
and the expansion of international trade. The IMF and World Bank have
identified 41 very poor countries with unsustainable levels of debt as
eligible for this new program; 23 countries had initiated the program
through the end of 2001. To qualify, the governments of the remaining
countries must undertake IMF supervised economic reforms and prepare
poverty-reduction strategy papers demonstrating how the debt relief
would be used to fight poverty. U.S. support for this program to succeed
is critical, both by providing funding to reduce the debts owed to the
U.S. agencies and the international financial institutions, and also by
helping the beneficiary countries effectively implement their debt
reduction strategies. Similarly, increased opportunities for developing
country exports depend heavily on U.S. leadership in trade
liberalization.

Figure 21

Economic Development Performance Goal 1: Key Indicators and Projected
Performance

  ------------- ------------ ----------- ------------ ----------- ---------------
  **Key         **1999       **2000      **2001       **2002      **2003
  Performance   Baseline**   Actual**    Actual**     Target**    Projected
  Indicator**                                                     Performance**

  Average       3.5%         4.8%        5.3%         5.3%        5.5%
  developing                             (estimate,               
  country GDP                            actual not               
  growth.                                available)               

  Average       0.8%         2.6%        3.0%         3.2%        3.5%
  transition                             (estimate,               
  country GDP                            actual not               
  growth.                                available)               

  Percentage    1.2 billion  1%          1-2%         2-3%        3-4%
  reduction of  people.                                           
  world                                                           
  population                                                      
  living in                                                       
  abject                                                          
  poverty.                                                        
  ------------- ------------ ----------- ------------ ----------- ---------------

####  

+-----------------------------------------------------------------------+
| ## Strategic Goal 8: American Citizens                                |
|                                                                       |
| Protect the safety of American citizens who travel and live abroad.   |
+-----------------------------------------------------------------------+

Protecting American citizens is a key responsibility of the U.S. and one
that is carried out by every Department post. The millions of Americans
who travel and reside abroad expect to do so with freedom and in
reasonable safety. U.S. passports and information on conditions in other
countries provide Americans with the basis for safe travel. When U.S.
citizens encounter emergencies they cannot handle (for example,
political unrest, natural disasters, accidents, terrorist attacks,
crime, illness, or legal problems), the Department is there to help
through its diplomatic and consular posts to ensure that they receive
assistance and protection.

+-----------------------------------------------------------------------+
| #### Performance Goal 1:                                              |
|                                                                       |
| #### U.S. citizens have the inform                                    |
| ation, services and protection they need to reside or travel abroad.  |
+-----------------------------------------------------------------------+

A good example of how this assistance affects the American public is the
activity experienced in 2001. Throughout the year, the Department
continued its efforts to keep Americans apprised of information that may
affect their safety and security overseas. Civil unrest in Indonesia,
Israel, the West Bank and Gaza, and Macedonia; terrorists threats to
U.S. citizens and interests throughout the world; violent demonstrations
at international conferences in Canada, Italy, and elsewhere;
kidnappings in Colombia and the Philippines; and earthquakes and
hurricanes were some of the challenges met by the Department.

In order to keep Americans informed in the most effective manner, the
Department has developed and implemented in recent years the Consular
Information Program which continues to be the primary instrument for
disseminating information to Americans. With access to technology
becoming more prevalent, the Department has seen a steady increase in
the number of visits to the consular web site (travel.state.gov).

In 2001, the average daily hits on the web site were more than 324,000,
up 84,000 from the 240,000 in 2000. The daily level of hits, which was
as high as 653,550 in January, declined after February as interest in
international travel lessened due to the economic downturn. However,
hits climbed again after September 11, as concern about safety abroad
rose. The site received three million hits in the week after September
11, compared to one and a half million in the preceding seven days.

The Department will continually update the website with the addition of
new features in 2002 and 2003 such as forms that easily can be filled
out on-line and an Internet-based registration capability so that
American travelers can be contacted more easily in an emergency.

Figure 23

American Citizens Performance Goal 1: Key Indicators and Projected
Performance

+-----------------------------------------------------------------------+
| #### Performance Goal 2:                                              |
|                                                                       |
| #### Tim                                                              |
| ely and effective passport issuance, with document integrity assured. |
+-----------------------------------------------------------------------+

The Department issues over seven million passports in 2001. While the
demand for passports has declined due to the economic downturn,
terrorism in the Middle East, and the after effects of September 11, the
Department, through its passport agencies, continues to streamline the
passport application procedures and increase the security and integrity
of the process. Applying for a passport has been made easier with the
addition of post offices, libraries and state or local government
offices where applications may be submitted. More staff have been added
in 2001 and 2002 to reduce the time it takes to process an application
resulting in faster turnaround time and at reduced cost by eliminating
seasonal overtime charges. While the average time to process an
application was 3.1 weeks during the busiest summer months in 2001,
nearly two million passports were processed in three days or less.

During 2002 and continuing into 2003, the Department plans to centralize
the processing of passport applications not needing expedited service at
two "megacenters" to improve the timeliness and efficiency of service.
The photodigitization process continued to be installed at
passport-issuing facilities and by the end of FY 2001 encompassed 93% of
all passports issued. To further enhance security, facial recognition
technology will be introduced into the passport adjudication process to
ensure passports are not issued to persons of concern to law enforcement
agencies.

Figure 24

American Citizens Performance Goal 2: Key Indicators and Projected
Performance

  ---------------- ------------- ------------- ------------- ------------- ---------------
  **Key            **1999        **2000        **2001        **2002        **2003
  Performance      Baseline**    Actual**      Actual**      Target**      Projected
  Indicator**                                                              Performance**

  Development of a Biometrics    Biometrics    Biometrics    Inclusion of  Initial
  biometrics       are not used  are not used  are not used  biometric     planning and
  collection       in U.S.       in U.S.       in U.S.       indicators in requirements
  program for U.S. passports.    passports.    passports     U.S.          definition for
  passports.                                                 passports is  biometrics
                                                             considered.   collection with
                                                                           planned
                                                                           roll-out to
                                                                           begin in FY
                                                                           2005.

  Implementation   Operational   Installed at  Installed at  Installed at  Development of
  of digitized     at 2 passport 4 more        8 more        2 more        process to
  passport         facilities.   passport      passport      passport      digitize
  process.                       facilities.   facilities.   facilities    overseas
                                                             (total of     passport data.
                                                             16.)          

  Percent of       45%           70%           93%           100%          100%
  digitized                                                                
  passports                                                                
  issued.                                                                  
  ---------------- ------------- ------------- ------------- ------------- ---------------

![](media/image5.wmf)**Percent of Digitized Passports Issued**

+-----------------------------------------------------------------------+
| ## Strategic Goal 9: Travel & Migration                               |
|                                                                       |
| Facilitate travel to the United States by foreign visitors,           |
| immigrants, and refugees,                                             |
|                                                                       |
| while denying entry by those who abuse or threaten our system.        |
+-----------------------------------------------------------------------+

Throughout its history, the U.S. has welcomed large numbers of
immigrants, who have made countless contributions to our nation.
Visitors to our country contribute about \$100 billion to the U.S.
economy each year and support jobs for over one million Americans.
However, at the same time the large number of people seeking to enter or
remain in the U.S. illegally presents a major law enforcement and
security problem.

In the post September 11 environment, the Department has committed
itself to improving its visa procedures and coordination with other
agencies and Departments to protect Americans from those who would abuse
the visa system. In addition to being responsive to new Bush
Administration priorities such as establishing a robust entry-exit
system for foreigners, the Department is also analyzing and improving
all current processes and procedures to ensure they reflect the lessons
learned from September 11.

+-----------------------------------------------------------------------+
| #### Performance Goal 1:                                              |
|                                                                       |
| #                                                                     |
| ### Timely and effective visa issuance and a reduction of visa fraud. |
+-----------------------------------------------------------------------+

The Department is on the frontlines of working to protect our homeland
security. U.S. consular officers adjudicate the visa applications of
persons who seek to enter the U.S. either temporarily or as immigrants.
The Department seeks to facilitate entry for deserving refugees of
natural disasters, political repression, and victims of trafficking as
provided by U.S. law. Consular screening facilitates entry of those who
qualify, while deterring illegal immigration, and prevents the entry
into the U.S. of known terrorists, narcotics traffickers, and other
criminals. Data generated by consular officers and shared with the
Immigration and Naturalization Service (INS) and other agencies enhance
both border security and service to visa recipients upon arrival in the
U.S.

Figure 26

Travel & Migration Performance Goal 1: Key Indicators and Projected
Performance

+-----------+-----------+-----------+-----------+-----------+-----------+
| **Key     | **1999    | **2000    | **2001    | **2002    | **2003    |
| Pe        | B         | Actual**  | Actual**  | Target**  | Projected |
| rformance | aseline** |           |           |           | Perf      |
| In        |           |           |           |           | ormance** |
| dicator** |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| De        | Biometric | Biometric | Biometric | Biometric | Biometric |
| velopment | i         | i         | BCC       | BCC       | BCC       |
| of a      | ndicators | ndicators | program   | program   | program   |
| b         | (photo    | (photo    | c         | c         | and       |
| iometrics | and two   | and two   | ontinues. | ontinues. | practical |
| c         | fing      | fing      |           |           | ap        |
| ollection | erprints) | erprints) | Facial    | P         | plication |
| program   | have been | are       | re        | roduction | of FR     |
| for U.S.  | collected | included  | cognition | of BCCs   | t         |
| visas.    | from      | in        | t         | at U.S.   | echnology |
|           | a         | non-      | echnology | Embassy   | continue. |
|           | pplicants | immigrant | is used   | in Mexico |           |
|           | and       | BCC.      | to        | su        | De        |
|           | included  |           | d         | pplements | velopment |
|           | in        | All posts | isqualify | BCC       | work      |
|           | non-      | in Mexico | duplicate | p         | begins on |
|           | immigrant | collect   | entries   | roduction | worldwide |
|           | Border    | biometric | in        | by INS in | b         |
|           | Crossing  | i         | Diversity | periods   | iometrics |
|           | Cards     | ndicators | Visa      | of great  | co        |
|           | (BCC)     | from      | lottery.  | demand.   | llection. |
|           | since     | ap        |           |           |           |
|           | April 1,  | plicants, |           | Use of    |           |
|           | 1998.     | both on-  |           | facial    |           |
|           |           | and       |           | re        |           |
|           | Six more  | off-site, |           | cognition |           |
|           | posts in  | and       |           | (FR)      |           |
|           | Mexico    | transmit  |           | t         |           |
|           | begin     | data      |           | echnology |           |
|           | c         | elect     |           | expands.  |           |
|           | ollecting | ronically |           |           |           |
|           | biometric | to INS.   |           |           |           |
|           | i         |           |           |           |           |
|           | ndicators |           |           |           |           |
|           | from      |           |           |           |           |
|           | ap        |           |           |           |           |
|           | plicants, |           |           |           |           |
|           | both on-  |           |           |           |           |
|           | and       |           |           |           |           |
|           | off-site, |           |           |           |           |
|           | and       |           |           |           |           |
|           | transmit  |           |           |           |           |
|           | data      |           |           |           |           |
|           | elect     |           |           |           |           |
|           | ronically |           |           |           |           |
|           | to INS.   |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Number of | 0         | 0         | 0         | 1         | 6         |
| other     |           |           |           |           |           |
| U.S.      |           |           |           |           |           |
| agencies  |           |           |           |           |           |
| with      |           |           |           |           |           |
| access to |           |           |           |           |           |
| Consular  |           |           |           |           |           |
| Con       |           |           |           |           |           |
| solidated |           |           |           |           |           |
| Database  |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Number of | 713,000   | 669,872   | 628,762   | 715,000   | 715,000   |
| Immigrant |           |           |           |           |           |
| Visa      |           |           |           |           |           |
| Cases     |           |           |           |           |           |
| P         |           |           |           |           |           |
| rocessed. |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Number of | 9,100,000 | 9,550,000 | 1         | 7,600,000 | 7,600,000 |
| Non-      |           |           | 0,596,194 |           |           |
| Immigrant |           |           |           |           |           |
| Visa      |           |           |           |           |           |
| Cases     |           |           |           |           |           |
| P         |           |           |           |           |           |
| rocessed. |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
|           | Note:     |           |           |           |           |
|           | Visa      |           |           |           |           |
|           | demand    |           |           |           |           |
|           | has       |           |           |           |           |
|           | declined  |           |           |           |           |
|           | by over   |           |           |           |           |
|           | 18%       |           |           |           |           |
|           | during    |           |           |           |           |
|           | FY02, and |           |           |           |           |
|           | the rate  |           |           |           |           |
|           | of        |           |           |           |           |
|           | decline   |           |           |           |           |
|           | has been  |           |           |           |           |
|           | i         |           |           |           |           |
|           | ncreasing |           |           |           |           |
|           | recently. |           |           |           |           |
|           | The       |           |           |           |           |
|           | D         |           |           |           |           |
|           | epartment |           |           |           |           |
|           | now       |           |           |           |           |
|           | expects   |           |           |           |           |
|           | that visa |           |           |           |           |
|           | demand    |           |           |           |           |
|           | for FY    |           |           |           |           |
|           | 2003 will |           |           |           |           |
|           | be        |           |           |           |           |
|           | \"flat\"  |           |           |           |           |
|           | as        |           |           |           |           |
|           | compared  |           |           |           |           |
|           | to the FY |           |           |           |           |
|           | 2002      |           |           |           |           |
|           | numbers.  |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+

Number of Non-Immigrant Visas Processed

![](media/image6.wmf)

+-----------------------------------------------------------------------+
| ## Strategic Goal 10: International Crime                             |
|                                                                       |
| Minimize the impact of international crime on the United States and   |
| its citizens.                                                         |
+-----------------------------------------------------------------------+

International crime poses a serious threat to

Americans at home and abroad. Trafficking in drugs

and arms, terrorism, money laundering, trafficking in

women and children, alien smuggling, counterfeiting,

auto theft, intellectual property theft, cyber crime, and

public corruption are all international in scope and

cost Americans billions of dollars each year. These

crimes affect the ability of the U.S. to achieve its

goals in stability, immigration, and democracy

abroad. And these international criminal enterprises

are often inextricably intertwined with transnational

terrorist organizations.

Because of the global character of international crime,

no one country can successfully fight it alone.

It takes coordination and cooperation achieved through

diplomatic channels to draw upon the expertise of

U.S. enforcement and judicial systems to

assist non-governmental organizations and foreign

governments to get the training, equipment, and

technical assistance they need to identify, prosecute,

and convict international criminals.

+-----------------------------------------------------------------------+
| #### Performance Goal 1:                                              |
|                                                                       |
| #### More effective cri                                               |
| minal justice institutions and law enforcement in targeted countries. |
+-----------------------------------------------------------------------+

Training is a core element of the Department's strategy for combating
transnational crime, as are

improving law enforcement and criminal justice institutions. Training
not only imparts key skills to law

enforcement officials, but it also builds relationships and operational
cooperation between the U.S. agencies providing the training and their
counterparts in foreign governments. These programs also promote
democratic principles abroad by helping to build justice sectors manned
by officials who are trained to be competent, fair, and committed to the
rule of law.

The establishment of International Law Enforcement Academies (ILEAs)
abroad is central to the Department's strategy. Begun in 1997, the first
ILEA opened in Budapest, Hungary, to serve countries in Western Europe.
A second ILEA was established in 1999 in Bangkok, Thailand, to provide
training to law enforcement officers, prosecutors, and members of the
judiciary from Thailand, Laos, Vietnam, Malaysia, Singapore, Indonesia,
the Philippines, the People's Republic of China, and Hong Kong. During
2001, the Department opened an ILEA in Gaborone, Botswana to serve all
of Africa. Also, advanced training was first provided at the new ILEA
established in Roswell, New Mexico, for graduates of the three regional
academies. A fifth academy will open in 2002 and continue expansion in
2003 in Costa Rica, which will serve all of Central and South America as
well as the Caribbean.

The Migrant Smuggling and Trafficking in Persons Coordination Center
opened in 2002 and will reach full operation in 2003. The Center will
focus on disrupting known smuggling rings and trafficking organizations.
Since some terrorist groups make use of smuggling rings to
surreptitiously move members across international borders, the
disruption operations will also serve counterterrorism objectives.

Figure 28

International Crime Performance Goal 1: Key Indicators and Projected
Performance

+-------------+-------------+-------------+-------------+-------------+
| **Key       | **2000      | **2001      | **2002      | **2003      |
| Performance | Baseline**  | Actual**    | Target**    | Projected   |
| Indicator** |             |             |             | Pe          |
|             | **(1999 not |             |             | rformance** |
|             | a           |             |             |             |
|             | vailable)** |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Number of   | 2           | 4           | 5           | 5           |
| In          |             |             |             |             |
| ternational |             |             |             |             |
| Law         |             |             |             |             |
| Enforcement |             |             |             |             |
| Academies   |             |             |             |             |
| (ILEAs)     |             |             |             |             |
| e           |             |             |             |             |
| stablished. |             |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Number of   | ####        | ######      | 1,800       | 2,100       |
| students    |             |             |             |             |
| trained:    | 1,100       | 1,412       | 15,000      | 15,000      |
|             |             |             |             |             |
| ILEA        | 11,700      | 14,581      |             |             |
| students    |             |             |             |             |
|             |             |             |             |             |
| Other       |             |             |             |             |
| program     |             |             |             |             |
| students    |             |             |             |             |
| (which      |             |             |             |             |
| includes    |             |             |             |             |
| funding     |             |             |             |             |
| from all    |             |             |             |             |
| sources.)   |             |             |             |             |
+-------------+-------------+-------------+-------------+-------------+

**Number of ILEA Students Trained**

![](media/image7.wmf)

+-----------------------------------------------------------------------+
| #### Performance Goal 2:                                              |
|                                                                       |
| #### Transnational cooperation and action to counter crime.           |
+-----------------------------------------------------------------------+

While the strengthening of justice systems sectors in foreign
governments is one step towards countering crime, just as important is
the need to encourage governments to work together on anti-crime
programs and, through diplomatic channels, force recalcitrant
governments to comply in the interest of justice. Following three years
of hard work, the international community completed the Transnational
Organized Crime Convention (TOCC) negotiations. More than 140 countries
have signed the agreement, which requires stronger laws and ultimate
prosecutions against organized crime including three main protocols on
trafficking in persons, migrant smuggling, and arms. The Department will
continue to work with member countries to facilitate implementation in
2002 and 2003.

Figure 29

International Crime Performance Goal 2: Key Indicators and Projected
Performance

+-------------+-------------+-------------+-------------+-------------+
| **Key       | **2000      | **2001      | **2002      | **2003      |
| Performance | Baseline**  | Actual**    | Target**    | Projected   |
| Indicator** |             |             |             | Pe          |
|             | **(1999 not |             |             | rformance** |
|             | a           |             |             |             |
|             | vailable)** |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Status of   | #### N      | Main        | 20 states   | ######      |
| Tr          | egotiations | convention  | ratify the  | ## 40 more  |
| ansnational |  of all ins | and all     | main        | countries r |
| Organized   | truments we | three       | convention; | atify main  |
| Crime       | re ongoing. | protocols   | imp         | convention. |
| Convention  |             | were        | lementation |             |
| (TOCC)      |             | completed.  | plan        |             |
| Impl        |             |             | developed.  |             |
| ementation. |             | ######      |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Status of   | #           | Study       | N           | ########    |
| in          | ### UN Cent | completed.  | egotiations | Negotiation |
| ternational | er for Inte | Began       | to set up   | s continue. |
| corruption  | rnational C | defining    | an          |             |
| instrument. | rime Preven | terms of    | in          |             |
|             | tion Secret | reference   | ternational |             |
|             | ariat recei | by expert   | corruption  |             |
|             | ved mandate | group.      | instrument  |             |
|             |  to complet |             | begin.      |             |
|             | e study of  | ######      |             |             |
|             | corruption. |             |             |             |
+-------------+-------------+-------------+-------------+-------------+

+-----------------------------------------------------------------------+
| ## Strategic Goal 11: Countering Illegal Drugs                        |
|                                                                       |
| Reduce the entry of illegal drugs into the United States.             |
+-----------------------------------------------------------------------+

Most illegal drugs consumed in the U.S. come from abroad. Control of the
foreign supply must complement efforts to reduce domestic drug use and
its harmful consequences. The Department is responsible for implementing
elements of the National Drug Control Strategy that entail relations
with or actions by foreign governments or international organizations,
and activities outside the U.S. subject to the authority of chiefs of
U.S. Diplomatic Missions. Department programs focus on the Andean
region, which is the primary source of the world's coca production and
heroin entering the U.S. The Department's goal is to sustain the effort
begun under the 2000 Plan Colombia emergency supplemental appropriation
(and the follow-on Andean Regional Initiative) and preempt the transfer
of drug cultivation, trafficking, and institutions to neighboring
countries. This will be accomplished through the combination of a "hard"
approach eradication of coca cultivation, destruction of lab and
processing facilities, and interdiction and breakup of trafficking
organizations, and a "soft" approach, alternative development coupled
with broader institution-building in the justice and rule-of-law
sectors.

+-----------------------------------------------------------------------+
| #### Performance Goal 1:                                              |
|                                                                       |
| ##                                                                    |
| ## Reduced foreign cultivation of opium poppies, coca, and marijuana. |
+-----------------------------------------------------------------------+

The most effective means of reducing the illegal drug supply is to
target drug production at the source through a combination of
enforcement, eradication, and alternative development programs. In terms
of program funding, the primary U.S. focus is the Andean Region,
currently the primary source of the world's cocaine production and the
main source of heroin entering the U.S. Action in this region combines
economic incentives for the farmers with law enforcement eradication of
coca cultivation, destruction of processing facilities, and interdiction
in and breakup of trafficking organizations. These incentives include
alternative crop development coupled with broader institution building
in the justice and rule-of-law sectors. A similar strategy applies to
the poppy-growing areas of Asia. The Department is successfully
targeting drug production in 2001 and 2002 in Latin America and in Asia.
Particular emphasis in 2003 will be directed to post-conflict
Afghanistan; as reconstruction takes place, effective counter-narcotics
measures will be implemented including sustaining the ban on poppy
cultivation (opium poppy cultivation is down 98% from one year ago).

Figure 31

Illegal Drugs Performance Goal 1: Key Indicators and Projected
Performance

+-------------+-------------+-------------+-------------+-------------+
| **Key       | **2000      | **2001      | **2002      | **2003      |
| Performance | Baseline**  | Actual**    | Target**    | Projected   |
| Indicator** |             |             |             | Pe          |
|             | **(1999 not |             |             | rformance** |
|             | a           |             |             |             |
|             | vailable)** |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Number of   | 183,000     | 233,700     | 167,760     | 156,000     |
| hectares of |             |             |             |             |
| illicit     |             |             |             |             |
| coca under  |             |             |             |             |
| c           |             |             |             |             |
| ultivation. |             |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Number of   | 178,755     | 143,918     | 131,495     | 125,000     |
| hectares of |             |             |             |             |
| illicit     |             |             |             |             |
| opium under |             |             |             |             |
| c           |             |             |             |             |
| ultivation. |             |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Number of   | 8,700       | 8,900       | 6,500       | 5,600       |
| hectares of |             |             |             |             |
| marijuana   |             |             |             |             |
| under       |             |             |             |             |
| c           |             |             |             |             |
| ultivation. |             |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Number of   | 2           | 3           | 2           | 2           |
| regional    |             |             |             |             |
| and         |             |             |             |             |
| in          |             |             |             |             |
| ternational |             |             |             |             |
| prevention  |             |             |             |             |
| summits.    |             |             |             |             |
+-------------+-------------+-------------+-------------+-------------+

![](media/image8.wmf)**Illegal Drugs Under Cultivation**

+-----------------------------------------------------------------------+
| #### Performance Goal 2:                                              |
|                                                                       |
| #### Criminal justice sectors of foreig                               |
| n governments break up major drug trafficking organizations and effec |
| tively investigate, prosecute, and convict major narcotics criminals. |
+-----------------------------------------------------------------------+

Strengthening the counter-drug capabilities of the broad range of
foreign governments requires a combination of diplomatic activism and
technical support. It is a long-term process that has produced
significant results over the years in terms of improved cooperation with
partner nations and greater effectiveness by partners in countering drug
production and trafficking. Similar to fighting international crime,
training remains the core activity. In 2001, over 1600 foreign
law-enforcement officers were trained in counter-narcotics. The number
is expected to increase in 2002 and 2003 to 1800 officers trained.

Improvements in relationships with foreign governments'
counter-narcotics agencies realized in 2001 will continue into 2002 and
2003 in those areas of major concern to the U.S. For example, in Mexico,
an all-out effort is being made to dismantle the international drug
cartels responsible for the majority of drugs that reach the U.S.
Significant results have been achieved with cocaine seizures tripling in
2001 over 2000 along with reduced production through the eradication
programs.

For many countries, the UN is the only vehicle for contributing to
international drug and crime controls, with over 160 countries having
ratified the 1988 UN Drug convention. The U.S. works closely with the UN
International Drug Control Program, which in turn helps countries create
successful programs. For example, in Burma, the world's second largest
producer of illicit opium (and which temporarily became the world's
largest producer during the Afghan poppy ban), alternative-development
projects are being initiated.

Figure 32

Illegal Drugs Performance Goal 2: Key Indicators and Projected
Performance

+-------------+-------------+-------------+-------------+-------------+
| **Key       | **2000      | **2001      | **2002      | **2003      |
| Performance | Baseline**  | Actual**    | Target**    | Projected   |
| Indicator** |             |             |             | Pe          |
|             | **(1999 not |             |             | rformance** |
|             | a           |             |             |             |
|             | vailable)** |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Number of   | 152         | 162         | 165         | 168         |
| countries   |             |             |             |             |
| party to    |             |             |             |             |
| the 1988    |             |             |             |             |
| United      |             |             |             |             |
| Nations     |             |             |             |             |
| Drug        |             |             |             |             |
| Convention. |             |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Number of   | 1,200       | 1,662       | 1,800       | 1,800       |
| foreign law |             |             |             |             |
| enforcement |             |             |             |             |
| personnel   |             |             |             |             |
| trained.    |             |             |             |             |
+-------------+-------------+-------------+-------------+-------------+

![](media/image9.wmf)

**Number of Foreign Law Enforcement Personnel Trained**

+-----------------------------------------------------------------------+
| ## Strategic Goal 12: Democracy & Human Rights                        |
|                                                                       |
| Build a worldwide community of democracies where human rights,        |
| including worker rights, and religious freedom are universally        |
| respected.                                                            |
+-----------------------------------------------------------------------+

Democracy and human rights issues have wide and deep support among
Americans. Beyond their idealistic appeal, our nation's commitment to
freedom tangibly advances America's interests. Stable, consolidated
democracies which respect the human rights of their citizens are more
likely to be prosperous, to enjoy peaceful relations with their
neighbors and the U.S., and free from the scourge of terrorism. By
promoting democracy and human rights, the Department assists in
providing the American people a safer world in which to live and
prosper.

The Department understands that terrorism has been gaining adherents for
some time in countries where human rights are denied and civil liberties
are repressed. The citizens in many of these countries also lack
economic opportunity.

Extending the benefits of globalization, has added a new dimension to
the challenge that America faces in defending our values. The benefits
of taking part in the global economy---the exchange of goods and
technology, the creation of jobs and an educated workforce---are
apparent. Stable, democratic governments offer the clearest path to the
economic growth and prosperity that nations and their peoples seek.
Ending corruption, assuring the observance of the rule of law, and
providing fair judicial recourse are central to economic development and
contribute to good corporate governance.

+-----------------------------------------------------------------------+
| #### Performance Goal 1:                                              |
|                                                                       |
| #### New democracies move toward political and                        |
|  economic stability; authoritarian regimes carry out liberalizations. |
+-----------------------------------------------------------------------+

The Department promotes democracy by advancing universal democratic
norms in international, multilateral, and regional forums. The
Department also provides tangible financial and technical support for
democracy and human rights programs.

Figure 34

Democracy Performance Goal 1: Key Indicators and Projected Performance

+-----------+-------------+--------------+-------------+--------------+
| **Key     | **2000      | **2001       | **2002      | **2003       |
| Pe        | Baseline**  | Actual**     | Target**    | Projected    |
| rformance |             |              |             | P            |
| In        | **(1999 not |              |             | erformance** |
| dicator** | a           |              |             |              |
|           | vailable)** |              |             |              |
+-----------+-------------+--------------+-------------+--------------+
| United    | UNCHR       | UNCHR passed | UNCHR       | UNCHR        |
| Nations   | passed a    | resolution   | begins      | finalizes    |
| C         | resolution  | for third    | n           | negotiations |
| ommission | on the      | year.        | egotiations | on           |
| on Human  | right to    |              | on draft    | declaration  |
| Rights    | democracy   |              | declaration | and UN       |
| (UNCHR)   | for the     |              | and UN      | General      |
| passes    | second      |              | General     | Assembly     |
| re        | straight    |              | Assembly    | passes       |
| solutions | year.       |              | passes      | resolution.  |
| on the    |             |              | resolution. |              |
| right to  |             |              |             |              |
| d         |             |              |             |              |
| emocracy. |             |              |             |              |
+-----------+-------------+--------------+-------------+--------------+
| Community | CD held its | CD Caucus    | Follow-up   | Follow-up to |
| of        | first       | established  | ministerial | Seoul        |
| De        | ministerial | and met.     | CD takes    | includes     |
| mocracies | in Warsaw.  |              | place in    | concrete     |
| (CD).     |             |              | Seoul.      | plans for    |
|           |             |              |             | regional     |
|           |             |              |             | or           |
|           |             |              |             | ganizations. |
+-----------+-------------+--------------+-------------+--------------+

+-----------------------------------------------------------------------+
| #### Performance Goal 2:                                              |
|                                                                       |
| #### Greater respect for human rights around the world.               |
+-----------------------------------------------------------------------+

The struggle for human rights is never-ending. The U.S. continues to
press for political liberalization and respect for basic human rights
worldwide, especially in countries that continue to defy democratic
advances. Working bilaterally and through multilateral institutions, the
U.S. promotes universal adherence to international human rights
standards and democratic principles. The Department accomplishes this
through several mechanisms. It produces an annual report on human rights
practices in 195 coun­tries that is respected globally for its
objectivity and accuracy. In addition, the Department takes consistent
positions with regard to human rights abuses. With regard to past
abuses, the Department actively promotes the principle of accountability
for past abuses. To stop ongoing abuses, the Department uses an
"inside-outside" approach that combines vigorous, external focus on
human rights concerns with equally robust support for internal reform.
To prevent future abuses, the Department promotes the principles of
early warning and preventive diplomacy.

Figure 35

Democracy Performance Goal 2: Key Indicators and Projected Performance

+-------------+-------------+-------------+-------------+-------------+
| **Key       | **2000      | **2001      | **2002      | **2003      |
| Performance | Baseline**  | Actual**    | Target**    | Projected   |
| Indicator** |             |             |             | Pe          |
|             | **(1999 not |             |             | rformance** |
|             | a           |             |             |             |
|             | vailable)** |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Imp         | Leahy       | Leahy       | Department  | Leahy       |
| lementation | procedures  | procedures  | working     | procedures  |
| of          | established | partially   | with 100%   | s           |
| s           | for U.S.    | implemented | of posts to | tandardized |
| tandardized | Foreign     | in key      | implement   | for         |
| procedures  | Operations  | countries.  | procedures. | countries   |
| for         | and Defense |             |             | of greatest |
| monitoring  | money.      | Department  |             | concern.    |
| the Leahy   |             | created a   |             |             |
| Amendment   |             | database to |             |             |
| which       |             | track       |             |             |
| restricts   |             | abuses.     |             |             |
| funding to  |             |             |             |             |
| military    |             |             |             |             |
| units if    |             |             |             |             |
| there have  |             |             |             |             |
| been gross  |             |             |             |             |
| violations  |             |             |             |             |
| of human    |             |             |             |             |
| rights.     |             |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Status of   | Commission  | Resolutions | Commission  | Majority of |
| count       | action on   | were passed | stops using | U.S.        |
| ry-specific | count       | with one    | no-action   | supported   |
| resolutions | ry-specific | exception:  | motion.     | resolutions |
| at the      | resolutions | China.      |             | pass;       |
| United      | subject to  |             |             | no-action   |
| Nations     | political   |             |             | motions     |
| Commission  | factors;    |             |             | defeated.   |
| on Human    | most        |             |             |             |
| Rights      | U.S         |             |             |             |
| (UNCHR).    | .-supported |             |             |             |
|             | resolutions |             |             |             |
|             | passed.     |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Enhanced    | No training | Pr          | Pr          | Continued   |
| training    | provided.   | esentations | esentations | pr          |
| for U.S.    |             | were        | in          | esentations |
| Government  |             | provided in | Ambassador  | at '02      |
| officials   |             | Poli­ti­cal   | and DCM     | level.      |
| on          |             | Tradecraft, | courses at  |             |
| combating   |             | A-100, and  | FSI.        |             |
| trafficking |             | Global      |             |             |
| in persons. |             | Issues      |             |             |
|             |             | courses at  |             |             |
|             |             | the Foreign |             |             |
|             |             | Service     |             |             |
|             |             | Institute   |             |             |
|             |             | (FSI).      |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Anti-       | N           | U.S. signs  | U.S.        | U.S.        |
| trafficking | egotiations | anti-       | ratifies    | implements  |
| protocol to | were        | trafficking | anti-       | anti-       |
| the crime   | underway,   | protocol.   | trafficking | trafficking |
| convention. | but were    | N           | protocol.   | protocol.   |
|             | bogged down | egotiations |             |             |
|             | in debate   | resolve     |             |             |
|             | over        | debate over |             |             |
|             | definition  | definition  |             |             |
|             | of          | of          |             |             |
|             | pr          | pr          |             |             |
|             | ostitution. | ostitution. |             |             |
+-------------+-------------+-------------+-------------+-------------+

+-----------------------------------------------------------------------+
| #### Performance Goal 3:                                              |
|                                                                       |
| #### Grea                                                             |
| ter observation and protection of worker rights; reduction of child l |
| abor; elimination of sweatshops producing goods for the U.S. market.  |
+-----------------------------------------------------------------------+

The Department supports the important role of human rights and democracy
in economic development through the promotion of worker rights and
corporate responsibility, in so doing helping to ensure that the
benefits of globalization are widely and fairly shared. In conjunction
with the Departments of Labor and Commerce, the Department develops and
implements strategies to promote international respect for worker
rights. Core programs include monitoring and reporting on labor abuses;
programs to reduce the use of child and sweatshop labor in firms
exporting to the U.S.; support for the International Program to
Eliminate Child Labor (IPEC); and a number of corporate social
responsibility initiatives.

Figure 36

Democracy Performance Goal 3: Key Indicators and Projected Performance

+-------------+-------------+-------------+-------------+-------------+
| **Key       | **2000      | **2001      | **2002      | **2003      |
| Performance | Baseline**  | Actual**    | Target**    | Projected   |
| Indicator** |             |             |             | Pe          |
|             | **(1999 not |             |             | rformance** |
|             | a           |             |             |             |
|             | vailable)** |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Degree of   | Limited     | Some U.S.   | A           | Most U.S.   |
| support for | adoption    | mu          | significant | companies   |
| worker      | and         | ltinational | number of   | with        |
| rights by   | application | c           | U.S.        | production  |
| U.S.        | of          | orporations | mu          | overseas    |
| c           | corporate   | adopted     | ltinational | have        |
| orporations | codes of    | corporate   | c           | compliance  |
| in          | conduct.    | codes with  | orporations | and         |
| countries   |             | fundamental | adopt codes | v           |
| where they  |             | worker      | with        | erification |
| operate.    |             | rights.     | fundamental | systems     |
|             |             |             | worker      | that        |
|             |             |             | rights.     | include     |
|             |             |             |             | fundamental |
|             |             |             |             | worker      |
|             |             |             |             | rights.     |
+-------------+-------------+-------------+-------------+-------------+
| Status of   | U.S.        | U.S.        | Labor code  | Increased   |
| worker      | provided    | Government  | changes in  | dialogue    |
| rights.     | \$30        | provided    | Russia,     | between     |
|             | million to  | \$45        | China       | In          |
|             | support     | million to  | promotes    | ternational |
|             | IPEC.       | support     | autonomous  | Labor       |
|             |             | IPEC.       | trade       | O           |
|             |             |             | unions and  | rganization |
|             |             |             | advance     | (ILO) and   |
|             |             |             | worker      | World Trade |
|             |             |             | rights.     | O           |
|             |             |             |             | rganization |
|             |             |             | World Bank  | (WTO).      |
|             |             |             | effectively |             |
|             |             |             | implements  | U.S.        |
|             |             |             | U.S.        | agencies    |
|             |             |             | sponsored   | work        |
|             |             |             | provisions  | together to |
|             |             |             | of fund     | raise       |
|             |             |             | rep         | respect for |
|             |             |             | lenishments | worker      |
|             |             |             | to          | rights.     |
|             |             |             | incorporate |             |
|             |             |             | respect for |             |
|             |             |             | worker      |             |
|             |             |             | rights in   |             |
|             |             |             | its country |             |
|             |             |             | assistance  |             |
|             |             |             | strategies. |             |
+-------------+-------------+-------------+-------------+-------------+
|             | Note:       |             |             |             |
|             | Original    |             |             |             |
|             | indicator   |             |             |             |
|             | focused     |             |             |             |
|             | only on     |             |             |             |
|             | child labor |             |             |             |
|             | (IPEC). It  |             |             |             |
|             | was made    |             |             |             |
|             | more        |             |             |             |
|             | inclusive   |             |             |             |
|             | of the      |             |             |             |
|             | D           |             |             |             |
|             | epartment's |             |             |             |
|             | labor       |             |             |             |
|             | activities  |             |             |             |
|             | in the 2003 |             |             |             |
|             | plan.       |             |             |             |
+-------------+-------------+-------------+-------------+-------------+

+-----------------------------------------------------------------------+
| #### Performance Goal 4:                                              |
|                                                                       |
| #### Worldwide acceptance of freedom of religion and conscience.      |
+-----------------------------------------------------------------------+

The U.S. regards the promotion of religious freedom as a matter of the
highest concern in our foreign policy. Freedom of thought, conscience,
and religion is a bedrock issue for the American people, reflected in
the International Religious Freedom Act of 1998, which provides the
flexibility needed to advance religious freedom and to counter religious
persecution. The Act mandates an annual report on International
Religious Freedom, of which the third was issued in October 2001. The
reports record not only violations of religious freedom, but the actions
of the U.S. throughout the world to assist those persecuted because of
religion and to promote freedom of religious belief and practice.

Figure 37

Democracy Performance Goal 4: Key Indicators and Projected Performance

+-------------+-------------+-------------+-------------+-------------+
| **Key       | **2000      | **2001      | **2002      | **2003      |
| Performance | Baseline**  | Actual**    | Target**    | Projected   |
| Indicator** |             |             |             | Pe          |
|             | **(1999 not |             |             | rformance** |
|             | a           |             |             |             |
|             | vailable)** |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Depa        | Department  | A           | 3           | 3           |
| rtment-wide | conference  | conference  | conferences | conferences |
| awareness   | on religion | on Islam    | held.       | held.       |
| of U.S.     | and foreign | and Foreign |             |             |
| religious   | policy.     | Policy was  |             |             |
| freedom     |             | held in     |             |             |
| policy.     |             | November    |             |             |
|             |             | 2000.       |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Foreign     | No foreign  | Discussions | Rec         | Lebanon and |
| assistance  | assistance  | were held   | onciliation | Indonesia   |
| p           | programming | with USAID  | program in  | programs    |
| rogramming. | devoted to  | but no      | Lebanon     | bringing    |
|             | promoting   | decisions   | brings      | results;    |
|             | religious   | were        | results;    | one         |
|             | freedom;    | reached.    | additional  | additional  |
|             | planning    |             | program     | program     |
|             | for         |             | begins in   | underway.   |
|             | religious   |             | Indonesia.  |             |
|             | rec         |             |             |             |
|             | onciliation |             |             |             |
|             | programs    |             |             |             |
|             | begins.     |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Outreach to | Islamic     | The Islamic | New         | New         |
| faith-based | Roundtable  | Roundtable  | outreach    | outreach    |
| c           | outreach    | met several | programs    | programs    |
| ommunities. | program.    | times. A    | e           | e           |
|             |             | new         | stablished. | stablished. |
|             |             | outreach    |             |             |
|             |             | program,    |             |             |
|             |             | Hindu       |             |             |
|             |             | Roundtable  |             |             |
|             |             | met for the |             |             |
|             |             | first time. |             |             |
|             |             | Reaching    |             |             |
|             |             | out to the  |             |             |
|             |             | Muslim      |             |             |
|             |             | community,  |             |             |
|             |             | the         |             |             |
|             |             | Secretary   |             |             |
|             |             | hosted an   |             |             |
|             |             | Iftaar.     |             |             |
+-------------+-------------+-------------+-------------+-------------+

+-----------------------------------------------------------------------+
| ## Strategic Goal 13: Humanitarian Assistance                         |
|                                                                       |
| Prevent or minimize the human costs of conflicts and natural          |
| disasters.                                                            |
+-----------------------------------------------------------------------+

The Department is strongly committed to helping those suffering from
conflict or natural disasters, even when there may be no threat to U.S.
security interests. The Department takes the lead in diplomatic efforts
bilaterally and multilaterally to prevent or minimize conflict through
negotiated settlement. Because of its extensive diplomatic influence and
reporting capacity even in the most remote parts of the world, the
Department provides early warning about evolving situations that could
lead to humanitarian crises. When humanitarian crises do occur, the
Department encourages and coordinates responses by other donor countries
and international organizations.

The Department actively participates in international forums that seek
to define and protect the rights of refugees and conflict victims, and
engages in bilateral and multilateral advocacy and public diplomacy on
behalf of these rights. When conflicts and disasters do occur, the
Department is responsible for financial support to international
assistance efforts for refugees and conflict victims working closely
with USAID and other bilateral, multilateral, and non-governmental
humanitarian assistance programs.

+-----------------------------------------------------------------------+
| #### Performance Goal 1:                                              |
|                                                                       |
| #### Equal access to protection; effecti                              |
| ve and coordinated assistance; and promotion of durable solutions (in |
| cluding voluntary repatriation) for refugees and victims of conflict. |
+-----------------------------------------------------------------------+

The Department works with governing bodies of relevant international
organizations to urge them to maintain fully developed emergency
response plans. The U.S. directly funds selected capacity-building
programs for international organizations and non-governmental
organizations and supports UN information collection and dissemination
activities and assistance programs related to complex humanitarian
emergencies. The Department coordinates, funds, and manages overseas
refugee admissions programs as both a means of protecting refugees and
of seeking durable solutions. The Department advises the Department of
Justice on asylum cases and on the granting of temporary protected
status.

Figure 39

Humanitarian Assistance Performance Goal 1: Key Indicators and Projected
Performance

+-----------+-----------+-----------+-----------+-----------+-----------+
| **Key     | **1999    | **2000    | **2001    | **2002    | **2003    |
| Pe        | B         | Actual**  | Actual**  | Target**  | Projected |
| rformance | aseline** |           |           |           | Perf      |
| In        |           |           |           |           | ormance** |
| dicator** |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Crude     | No        | No        | Prolonged | Crises do | Crises do |
| Mortality | reports   | reports   | suffering | not       | not       |
| Rates     | of        | of        | not       | exceed a  | exceed a  |
| (CMR).    | excessive | excessive | reported. | crude     | crude     |
|           | mortality | mortality | CMR rate  | mortality | mortality |
|           | rates     | rates     | exceeded  | rate of   | rate of   |
|           | based on  | based on  | 1 per     | \> 1 per  | \> 1 per  |
|           | set       | set       | 1         | 10,000    | 10,000    |
|           | criteria. | criteria. | 0,000/day | p         | p         |
|           |           |           | for a     | eople/day | eople/day |
|           |           |           | short     | for an    | for an    |
|           |           |           | time      | extended  | extended  |
|           |           |           | (e.g.     | period.   | period.   |
|           |           |           | Afg       | If        | If        |
|           |           |           | hanistan, | n         | n         |
|           |           |           | Angola).  | ecessary, | ecessary, |
|           |           |           | Better    | take      | take      |
|           |           |           | me        | measures  | measures  |
|           |           |           | asurement | to        | to        |
|           |           |           | tools     | address   | address   |
|           |           |           | created.  | any       | any       |
|           |           |           |           | problems  | problems  |
|           |           |           |           | of excess | of excess |
|           |           |           |           | m         | m         |
|           |           |           |           | ortality. | ortality. |
+-----------+-----------+-----------+-----------+-----------+-----------+
| P         | New       | New       | 87        | Out of a  | 100%      |
| ercentage | i         | i         | percent   | ceiling   |           |
| of        | ndicator. | ndicator. | r         | of        | (This is  |
| refugees  |           |           | esettled. | 70,000,   | the       |
| resettled |           |           |           | 20,414    | Dep       |
| in the    |           |           |           | (29%) had | artment's |
| U.S., as  |           |           |           | been      | ideal     |
| a         |           |           |           | resettled | target.   |
| p         |           |           |           | by the    | Meeting   |
| ercentage |           |           |           | end of    | the       |
| of the    |           |           |           | July.     | target,   |
| es        |           |           |           |           | however,  |
| tablished |           |           |           | (The      | is        |
| ceiling.  |           |           |           | number    | c         |
|           |           |           |           | has been  | ontingent |
| (This     |           |           |           | kept low  | upon      |
| ceiling   |           |           |           | by        | external  |
| is        |           |           |           | dev       | facto     |
| es        |           |           |           | elopments | rs---both |
| tablished |           |           |           | since the | domestic  |
| each year |           |           |           | attacks   | and       |
| through   |           |           |           | of        | over      |
| cons      |           |           |           | September | seas---as |
| ultations |           |           |           | 11.)      | well as   |
| with      |           |           |           |           | INS'      |
| voluntary |           |           |           |           | refugee   |
| agencies, |           |           |           |           | approval  |
| Congress, |           |           |           |           | rates.)   |
| the INS,  |           |           |           |           |           |
| and the   |           |           |           |           |           |
| D         |           |           |           |           |           |
| epartment |           |           |           |           |           |
| of Health |           |           |           |           |           |
| and Human |           |           |           |           |           |
| S         |           |           |           |           |           |
| ervices.) |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+

+-----------------------------------------------------------------------+
| #### Performance Goal 2:                                              |
|                                                                       |
| ###                                                                   |
| # Mitigation, preparedness, and early warning of humanitarian crises. |
+-----------------------------------------------------------------------+

The Department is the leading agency in the Global Disaster Information
Network (GDIN) that streamlines the use of remote sensing and mapping
technologies for use in disaster mitigation and response. Serving as
chair, the Department leads the U.S. participation in GDIN in
partnership with the UN, the European Commission, the World Bank and
other international organizations, governments, non-governmental
organizations, and private entities. The Department also coordinates its
GDIN work with a related domestic initiative, the National Hazard
Information Strategy (NHIS), led by the National Oceanic and Atmospheric
Administration.

**Figure 40**

Humanitarian Assistance Performance Goal 2: Key Indicators and Projected
Performance

  ------------- -------------- ------------- --------------------- -------------- ---------------
  **Key         **1999         **2000        **2001 Actual**       **2002         **2003
  Performance   Baseline**     Actual**                            Target**       Projected
  Indicator**                                                                     Performance**

  Status of     Network still  Partners      Attempts were made to An operations  A fully
  Global        in early       reported that obtain                center is      functioning
  Disaster      stages of      GDIN products information-sharing   established    GDIN system.
  Information   testing and    and services  agreements among      and the number 
  Network       development.   were timely   data-sharing          of             
  (GDIN).                      and valuable  partners.             data-sharing   
                               tools worth                         partners is    
                               further                             increased.     
                               investment.                         GDIN members   
                                                                   would          
                                                                   determine      
                                                                   status of the  
                                                                   entity.        
  ------------- -------------- ------------- --------------------- -------------- ---------------

+-----------------------------------------------------------------------+
| #### Performance Goal 3:                                              |
|                                                                       |
| #### Implementation and improvements to the Amen                      |
| ded Mines Protocol of the Convention on Conventional Weapons and Impr |
| ovements continue to eliminate existing landmines and reduce civilian |
|  casualties in countries where humanitarian demining programs exist.  |
+-----------------------------------------------------------------------+

The National Security Council chairs the Policy Coordinating Committee
(PCC) on Democracy, Human Rights, and International Operations, which
sets U.S. humanitarian demining policy and decides which nations will
receive U.S. assistance. The Department, which is a vice-chair of the
PCC Sub-group on humanitarian demining, works closely with the
Department of Defense, USAID and other members to coordinate U.S.
assistance and ensure the development of indigenous humanitarian mine
action programs.

The ultimate goal is the elimination of uncleared landmines that
threaten civilian populations by the year 2010. Populations in more than
60 countries, mostly in the developing world, face a daily threat of
being killed or maimed by millions of landmines leftover from previous
conflicts. The Department coordinates the U.S. government approach
working closely with the Department of Defense, National Security
Council and other agencies to ensure that efforts are properly organized
in concert with international organizations and sponsors of demining
programs.

**Figure 41**

Humanitarian Assistance Performance Goal 3: Key Indicators and Projected
Performance

+-----------+-----------+-----------+-----------+-----------+-----------+
| **Key     | **1999    | **2000    | **2001    | **2002    | **2003    |
| Pe        | B         | Actual**  | Actual**  | Target**  | Projected |
| rformance | aseline** |           |           |           | Perf      |
| In        |           |           |           |           | ormance** |
| dicator** |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Number of | 3         | 5         | 11        | 16        | 19        |
| U.        |           |           |           |           |           |
| S.-funded |           |           |           |           |           |
| host      |           |           |           |           |           |
| nation    |           |           |           |           |           |
| programs  |           |           |           |           |           |
| achieving |           |           |           |           |           |
| "sust     |           |           |           |           |           |
| ainment." |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Reduction | 12,000    | 5 %       | 7 %       | 10 %      | 10 %      |
| of        |           |           |           |           |           |
| civilian  |           |           |           |           |           |
| c         |           |           |           |           |           |
| asualties |           |           |           |           |           |
| in        |           |           |           |           |           |
| countries |           |           |           |           |           |
| with      |           |           |           |           |           |
| hum       |           |           |           |           |           |
| anitarian |           |           |           |           |           |
| demining  |           |           |           |           |           |
| programs. |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Hectar    | N/A       | 7,000,000 | 7,500,000 | 8,000,000 | 8,500,000 |
| es/square |           | sq.       | sq.       | sq.       | sq.       |
| k         |           | meters    | meters    | meters    | meters    |
| ilometers |           |           |           |           |           |
| of land   |           |           | (         |           |           |
| (p        |           |           | estimate) |           |           |
| arklands, |           |           |           |           |           |
| agr       |           |           |           |           |           |
| icultural |           |           |           |           |           |
| fields,   |           |           |           |           |           |
| etc.)     |           |           |           |           |           |
| returned  |           |           |           |           |           |
| to        |           |           |           |           |           |
| p         |           |           |           |           |           |
| roductive |           |           |           |           |           |
| use.      |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| K         | N/A       | 10,000 km | 12,000 km | 14,000 km | 16,000 km |
| ilometers |           |           |           |           |           |
| of road   |           |           | (         |           |           |
| cleared   |           |           | estimate) |           |           |
| of        |           |           |           |           |           |
| l         |           |           |           |           |           |
| andmines. |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+

#### Number of U.S. Funded Host Nation Programs Achieving Sustainment Level

![](media/image10.wmf)

+-----------------------------------------------------------------------+
| ## Strategic Goal 14: Environment                                     |
|                                                                       |
| Secure a sustainable environment to protect U.S. citizens and         |
| interests from the effects of international degradation.              |
+-----------------------------------------------------------------------+

Environmental issues are in the mainstream of U.S. foreign policy,
demonstrated by daily headlines ranging from climate change to whales,
bioengineered foods or the struggle to manage global water resources.
Less visible, though no less significant, are the Department's efforts
to advance U.S. interests in ongoing international negotiations
concerning the oceans and fisheries, forests, coral reefs, endangered
species, chemicals and waste management, outer space, and the broader
frontiers of scientific research. In addition, bilateral and
multilateral science and technology agreements are used to advance the
Administration\'s foreign policy objectives.

Over-fishing in the oceans, greenhouse gases in the atmosphere, release
of chemical pollutants, destruction of forests, degradation of water
supplies, and damage to the global environment, all threaten the health
and security of Americans and the future of the global economy. Working
with the international community to develop the global environmental
framework for the next several decades, it is critical that the U.S.
provide strong leadership to shape outcomes that meet U.S. environmental
objectives, protect economic interests, and promote social development.

+-----------------------------------------------------------------------+
| #### Performance Goal 1:                                              |
|                                                                       |
| #### Donor countries and in                                           |
| ternational financial institutions support U.S. positions and externa |
| l efforts to make trade and environment policies mutually supportive. |
+-----------------------------------------------------------------------+

Private capital has become the engine of economic growth in many
developing countries, eclipsing official development assistance. As the
U.S. sets out to negotiate free trade agreements, either bilaterally or
regionally, it is critical that the environmental implications of
expanded trade be considered to raise U.S. trade partners' domestic
environmental standards. The Department works with the U.S. Trade
Representative's Office in its efforts to help other trade institutions
develop a framework for higher levels of environmental protection and
effective enforcement, compliance, and monitoring of environmental
treaties.

The financial decisions of export credit agencies and publicly funded
government agencies that support private investments have significant
environmental consequences as well. The Department works with the
Department of Treasury and other organizations to ensure that the flow
of private capital includes environmental standards.

Figure 43

Environment Performance Goal 1: Key Indicators and Projected Performance

+-----------------------------------------------------------------------+
| #### Performance Goal 2:                                              |
|                                                                       |
| #### International treaties and agreements th                         |
| at protect the environment are negotiated, implemented, and enforced. |
+-----------------------------------------------------------------------+

Working with other U.S. agencies, scientists, businesses, and citizen
groups, the Department develops positions and policies that address
complex international environmental issues and then negotiates with
other countries to build support for these positions ensuring their
inclusion in pertinent treaties and agreements. For example, fisheries
agreements attempt to address the chronic over fishing of 70 percent of
the world's fish stocks that has resulted in the loss of thousands of
American jobs. Also, in concert with other nations, the Department is
negotiating a landmark agreement that bans or severely restricts the
production and use of chemicals and pesticides such as DDT---long banned
in the U.S. but still produced and used elsewhere---contaminating soil,
food, and water.

**Figure 44**

Environment Performance Goal 2: Key Indicators and Projected Performance

+-------------+-------------+-------------+-------------+-------------+
| **Key       | **2000      | **2001      | **2002      | **2003      |
| Performance | Baseline**  | Actual**    | Target**    | Projected   |
| Indicator** |             |             |             | Pe          |
|             | **(1999 not |             |             | rformance** |
|             | a           |             |             |             |
|             | vailable)** |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Advance     | Parties     | Adm         | U.S.        | U.S.        |
| U.S.        | progressed  | inistration | approaches  | implements  |
| approaches  | in          | rejected    | reflected   | P           |
| to climate  | elaborating | Kyoto       | in UN       | resident\'s |
| change.     | components  | Protocol.   | Framework   | climate     |
|             | of the      | The         | Convention  | change      |
|             | Kyoto       | Department  | on Climate  | policy;     |
|             | Protocol.   | promoted    | Change;     | bilateral   |
|             | General     | more        | enhanced    | cooperation |
|             | modalities  | effective   | bilateral   | expands     |
|             | for Clean   | approaches  | cooperation | with key    |
|             | Development | to climate  | with key    | partners in |
|             | Mechanism   | change.     | countries   | developed   |
|             | (CDM) and   |             | in Western  | and         |
|             | other       |             | Hemisphere  | developing  |
|             | mechanisms  |             | and         | world; U.S. |
|             | became      |             | elsewhere.  | engagement  |
|             | clearer.    |             |             | under UN    |
|             |             |             |             | Framework   |
|             |             |             |             | Convention  |
|             |             |             |             | on Climate  |
|             |             |             |             | Change.     |
+-------------+-------------+-------------+-------------+-------------+
|             | Note:       |             |             |             |
|             | Changed     |             |             |             |
|             | language    |             |             |             |
|             | from        |             |             |             |
|             | 2001-2002   |             |             |             |
|             | Plan:       |             |             |             |
|             | "Response   |             |             |             |
|             | of the      |             |             |             |
|             | in          |             |             |             |
|             | ternational |             |             |             |
|             | community   |             |             |             |
|             | to          |             |             |             |
|             | alternative |             |             |             |
|             | approaches  |             |             |             |
|             | to the      |             |             |             |
|             | Kyoto       |             |             |             |
|             | Protocol"   |             |             |             |
|             | to the      |             |             |             |
|             | broader     |             |             |             |
|             | indicator   |             |             |             |
|             | above.      |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Convention  | Senate      | Goal        | Expand      | Convene a   |
| To Combat   | provided    | achieved.   | op          | subsidiary  |
| Dese        | advice and  | The U.S.    | portunities | committee   |
| rtification | consent.    | became a    | for         | to consider |
| mitigates   |             | Party to    | research    | scientific  |
| the effects |             | the         | centers and | and         |
| of drought  |             | Convention  | u           | technical   |
| on arid,    |             | on February | niversities | imp         |
| semi-arid   |             | 15, 2001.   | to share    | lementation |
| and dry     |             |             | technical   | issues in   |
| subhumid    |             |             | expertise.  | the 2-year  |
| lands.      |             |             |             | interval    |
|             |             |             |             | between     |
|             |             |             |             | Conferences |
|             |             |             |             | of the      |
|             |             |             |             | Parties.    |
+-------------+-------------+-------------+-------------+-------------+
| Status of   | N           | President   | U.S.        | POPS        |
| r           | egotiations | Bush        | r           | Convention  |
| atification | completed.  | endorsed    | atification | enters into |
| of          |             | the POPS    | complete.   | force.      |
| Stockholm   |             | Convention. |             |             |
| Convention  |             | U.S. signed |             |             |
| on          |             | Convention  |             |             |
| Persistent  |             | in May 2001 |             |             |
| Organic     |             | and began   |             |             |
| Pollutants  |             | preparing   |             |             |
| (POPS)      |             | treaty      |             |             |
| Convention. |             | package for |             |             |
|             |             | advice and  |             |             |
|             |             | consent of  |             |             |
|             |             | Senate.     |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Status of   | Pending     | Remained    | Work within | U.S. works  |
| U.S.        | before      | pending     | Adm         | with Senate |
| Accession   | Senate      | before      | inistration | on          |
| to the Law  | Foreign     | Senate      | and with    | ra          |
| of the Sea  | Relations   | Foreign     | U.S. Senate | tification. |
| Convention  | Committee.  | Relations   | with the    |             |
| (LOS).      |             | Committee.  | goal of     |             |
|             |             |             | U.S.        |             |
|             |             |             | accession.  |             |
+-------------+-------------+-------------+-------------+-------------+

+-----------------------------------------------------------------------+
| #### Performance Goal 3:                                              |
|                                                                       |
| #### International f                                                  |
| inancial and multinational institutions and donor countries provide g |
| reater development assistance dealing with key environmental issues.  |
+-----------------------------------------------------------------------+

The Department cannot improve the global economy without successfully
engaging, involving, and helping developing nations in their own
efforts. Many developing countries, faced with a daunting agenda of
public policy issues, do not have the capacity to address the
environmental challenges they confront. In the Middle East and Africa,
water shortages threaten regional stability and undermine efforts to
promote economic growth. In East Asia and the Pacific, environmental
degradation and air pollution cause widespread disease and greatly
reduce economic productivity. The Department works to ensure that
developmental assistance provided by U.S. agencies helps developing
countries build their capacity to protect their environments, thereby
building good will and improving the global environment.

**Figure 45**

**Environment Performance Goal 3: Key Indicators and Projected
Performance**

  -------------------- --------------- ----------------- ------------------- ----------------- -----------------
  **Key Performance    **1999          **2000 Actual**   **2001 Actual**     **2002 Target**   **2003 Projected
  Indicator**          Baseline**                                                              Performance**

  Activity of          Russia still    All seven         Developing          CFC-producers in  Developing
  chlorofluorocarbon   producing ozone CFC-producing     countries begin     Russia have       countries cut
  (CFC)-producing      depleting CFCs. enterprises in    phasing out         properly disposed production and
  enterprises in       Developing      Russia halted     production of ozone of all            use of
  Russia and           countries have  production.       depleting           ozone-depleting   ozone-depleting
  developing           not begun                         substances.         products.         substances by at
  countries.           phasing out                                                             least 25%.
                       ozone depleting                                                         
                       substances.                                                             

  Progress among U.S.  No data         Riparians met     Riparians in the    Riparians meet    Riparians in
  Government, donors   available.      infrequently and  Nile and Mekong met regularly.        several key
  and riparians in                     unproductively.   regularly to        Significant       basins meet
  addressing                           Donors met but    develop joint       increase in       regularly.
  transboundary water                  little            project proposals.  number of joint   Riparians in 1-2
  issues in key                        coordination.     Donors met to       activities.       key basins begin
  regions.                                               discuss cooperation Donors meet,      deliberations on
                                                         and coordination.   efforts are well  legal frameworks
                                                         Nile donor          coordinated.      for joint
                                                         conference held in                    management of
                                                         Geneva, and raised                    basin resources.
                                                         \$140 million                         Donor meetings
                                                         (U.S.). Initial                       promote
                                                         discussions taking                    cooperation and
                                                         place among the                       coordination.
                                                         riparians in the                      
                                                         Caucasus and in                       
                                                         Botswana.                             

  Status of EU         EU fisheries    EU set to embark  Fisheries included  Conservation      U.S. works with
  fisheries.           policies        on review of its  as an early-warning included as an    the EU to
                       dominated by    Common Fisheries  item in New         important element implement
                       socioeconomic   Policy (CFP).     Trans-Atlantic      in EU Common      conservation
                       concerns;                         Agenda discussions  Fisheries Policy. focus in its
                       U.S.-EU                           and raised with                       international
                       relations in                      visiting EU                           fisheries policy
                       international                     Parliamentarians.                     through its
                       fisheries fora                    EU included                           participation in
                       strained.                         conservation as                       regional
                                                         critical focus in                     fisheries
                                                         draft Green Paper                     management
                                                         on domestic                           organizations &
                                                         fisheries. EU will                    U.S.-EU working
                                                         finalize the new                      relationships in
                                                         CFP in the next                       those
                                                         year.                                 organizations
                                                                                               improve.
  -------------------- --------------- ----------------- ------------------- ----------------- -----------------

+-----------------------------------------------------------------------+
| ## Strategic Goal 15: Population                                      |
|                                                                       |
| Achieve a healthy and sustainable world population.                   |
+-----------------------------------------------------------------------+

Integral to the American goal of achieving a sustainable and prosperous
global environment, and in consonance with the deepest humanitarian
traditions of the United States, is the Department's objective of
working towards achieving a healthy and sustainable world population.
Economic and social progress can be undermined by unsustainable
population growth that overburdens the quality and availability of
public services, limits employment opportunities, and contributes to
environmental degradation. Not only will sustainable population growth
promote environmentally sustainable economic development around the
world, it will also benefit U.S. trade opportunities and help mitigate
future global crises.

The Department plays a crucial role in developing a receptive policy
environment for the implementation of reproductive and maternal health
programs. Policy coordination, public diplomacy, bilateral and
multilateral advocacy, and coordination of U.S. international efforts
are all vital State Department contributions. More specifically, the
Department works to enable parents to choose the number and spacing of
births, enhance maternal and child health, reduce the incidence of
abortion, and better provide for their children.

+-----------------------------------------------------------------------+
| #### Performance Goal 1:                                              |
|                                                                       |
| #### Improving reproductive health, including improved access t       |
| o voluntary family planning, safe motherhood services, Sexually Trans |
| mitted Infection (STI) prevention information, and girl's education.  |
+-----------------------------------------------------------------------+

The Department is working with other nations to provide reproductive
health care, to women and men around the world; to improve the status of
women; and to enhance educational opportunities, especially for girls.
At the turn of the century, data on fertility and reproductive health in
developing countries indicated that actual fertility exceeded desired
fertility by nearly one child per woman. Ample evidence exists to
demonstrate that family planning programs are the most effective means
for closing the gap between actual and desired fertility. The Department
has worked to increase motivation for adopting the voluntary practices
that contribute to higher contraceptive prevalence rates (CPR). The
Department has also increased awareness of and demand for family
planning and reproductive health interventions by improving the policy
environment, public information, and communication.

Figure 47

Population Performance Goal 1: Key Indicators and Projected Performance

  --------------- ------------ ------------ -------------- ------------ ---------------
  **Key           **1999       **2000       **2001         **2002       **2003
  Performance     Baseline**   Actual**     Actual**       Target**     Projected
  Indicator**                                                           Performance**

  Contraceptive   39%          No data      22 less        Additional   Additional 10
  Prevalence                   available.   developed      10 countries countries
  Rates (CPR) in                            countries      increase CPR increase CPR by
  less developed                            increased CPR  by 2% or     2% or more.
  countries.                                by 2% or more. more.        

  Percentage of   53%          No data      2 countries    Additional   Additional 10
  births in less               available.   increased      10 countries countries
  developed                                 birth          increase     increase birth
  countries                                 attendant      birth        attendant
  assisted by                               presence by 2% attendant    presence by 2%
  skilled birth                             or more.       presence by  or more.
  attendant.                                               2% or more.  

  Secondary       63 countries No data      No             10 countries 10 countries
  school          had          available.   improvement.   under 50%    under 50%
  enrollment      enrollment                               increase     increase girls
  among girls.    under 50%.                               girls        enrollment by
                                                           enrollment   2% or more.
                                                           by 2% or     
                                                           more.        
  --------------- ------------ ------------ -------------- ------------ ---------------

+-----------------------------------------------------------------------+
| ## Strategic Goal 16: Health                                          |
|                                                                       |
| Promote global health.                                                |
+-----------------------------------------------------------------------+

The unmitigated spread of major virulent diseases poses a direct threat
to the American people. In a world of increasingly porous borders, many
diseases that were previously inhibited by physical barriers are finding
increasing access to the United States. Epidemics recognize no
privileges of sovereignty. It is therefore in the interest of the
American people to help combat major global diseases. The burden of poor
health weighs heavily upon the less developed nations of the world,
retarding economic and social growth encourages discord and competition
for resources. The campaign against global diseases directly supports
U.S. national interests and major foreign policy goals, such as
promoting stable societies and economies.

The Department has responsibility for foreign policy issues involving
international health, particularly for infectious diseases of epidemic
or pandemic proportions that pose a serious threat to American citizens
and the international community. The Department engages senior leaders
in governments and across multiple sectors to create awareness and spur
action. The Department plays a central role in negotiating international
agreements and advancing American interests at international
organizations to improve the global capacity to confront and avert major
health threats. The Department is focusing on the threats of HIV/AIDS,
tuberculosis, and malaria, diseases that together account for one-fourth
of all premature deaths worldwide. The Department plays a key role in
the struggle against these devastating illnesses, working to assemble
the resources and coordinate the political support to counter diseases
with global implications.

+-----------------------------------------------------------------------+
| #### Performance Goal 1:                                              |
|                                                                       |
| #### Lowered global incidence of targeted di                          |
| seases; more effective health care capabilities in targeted regions.  |
+-----------------------------------------------------------------------+

The U.S. is deeply concerned about the continuing global spread of major
existing infectious diseases such as HIV/AIDS, malaria, and
tuberculosis, as well as newer pathogens such as West Nile encephalitis.
The fight against these plagues requires public-private partnerships.
The Department works with foreign governments to increase their
political and financial commitment to improving the health of their
peoples. The Department works cooperatively with multilateral agencies
such as the World Health Organization, international financial
institutions like the World Bank, and other major donors to raise and
coordinate funds for health related efforts. In addition, the Department
leads public diplomacy and educational campaigns to inform key foreign
audiences about methods to counteract the spread of disease.

Figure 49

Health Performance Goal 1: Key Indicators and Projected Performance

+-----------+-----------+-----------+-----------+-----------+-----------+
| **Key     | **1999    | **2000    | **2001    | **2002    | **2003    |
| Pe        | B         | Actual**  | Actual**  | Target**  | Projected |
| rformance | aseline** |           |           |           | Perf      |
| In        |           |           |           |           | ormance** |
| dicator** |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Disease   | 5.4       | 5.3       | 5.0       | Decline   | Decline   |
| incidence | million   | million   | million   | in the    | in the    |
| rates for | new       | new       | new       | number of | number of |
| HIV/AIDS  | in        | in        | in        | new       | new       |
| w         | fections. | fections. | fections. | in        | in        |
| orldwide. |           |           |           | fections. | fections. |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Disease   | 7,142     | 2,971     | 521       | Continued | Continued |
| incidence |           |           |           | drop in   | drop in   |
| rates for |           |           | Polio is  | i         | i         |
| polio     |           |           | 99%       | ncidence. | ncidence. |
| w         |           |           | e         |           |           |
| orldwide. |           |           | radicated | Era       | Era       |
|           |           |           | w         | dication. | dication. |
|           |           |           | orldwide. |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Level of  | Raised    | More      | The level | Further   | Further   |
| inte      | global    | countries | of        | increase  | increase  |
| rnational | sur       | involved  | bilateral | inte      | inte      |
| coll      | veillance | in        | and       | rnational | rnational |
| aboration | in        | d         | mul       | support   | support   |
| and       | inte      | eveloping | tilateral | and       | and       |
| part      | rnational | al        | coll      | expansion | expansion |
| nerships. | forums;   | ternative | aboration | for       | for       |
|           | TB        | malaria   | on global | global    | global    |
|           | research  | and flu   | health    | surv      | surv      |
|           | center    | vector    | increased | eillance, | eillance, |
|           | es        | control   | signi     | response  | response  |
|           | tablished | methods;  | ficantly. | efforts,  | efforts,  |
|           | in        | increased |           | and       | and       |
|           | Baltics;  | awareness | Neg       | research  | research  |
|           | increased | of        | otiations | and       | and       |
|           | inte      | Rollback  | concluded | control   | control   |
|           | rnational | Malaria.  | to        | for AIDS, | for AIDS, |
|           | awareness |           | establish | malaria,  | malaria,  |
|           | of        |           | Global    | and TB.   | and TB.   |
|           | malaria   |           | Fund to   |           |           |
|           | and       |           | Fight     |           |           |
|           | influenza |           | AIDS,     |           |           |
|           | vector    |           | Tube      |           |           |
|           | control   |           | rculosis, |           |           |
|           | issues    |           | and       |           |           |
|           | and WHO   |           | Malaria,  |           |           |
|           | Rollback  |           | with      |           |           |
|           | Malaria   |           | pledges   |           |           |
|           | Program.  |           | exceeding |           |           |
|           |           |           | \$1.7     |           |           |
|           |           |           | billion.  |           |           |
|           |           |           |           |           |           |
|           |           |           | Rollback  |           |           |
|           |           |           | Malaria   |           |           |
|           |           |           | reported  |           |           |
|           |           |           | progress. |           |           |
|           |           |           |           |           |           |
|           |           |           | Stop TB   |           |           |
|           |           |           | Par       |           |           |
|           |           |           | tnerships |           |           |
|           |           |           | Global    |           |           |
|           |           |           | Drug      |           |           |
|           |           |           | Facility  |           |           |
|           |           |           | became    |           |           |
|           |           |           | ope       |           |           |
|           |           |           | rational. |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Nations   | Fewer     | 8         | Co        | Increase  | Increase  |
| in        | than 8.   |           | operation | in        | in        |
| targeted  |           |           | i         | h         | h         |
| regions   |           |           | ncreasing | igh-level | igh-level |
| and donor |           |           | at        | support   | support   |
| partners  |           |           | executive | for       | for       |
| appoint   |           |           | level.    | combating | combating |
| executive |           |           |           | HIV/AIDS. | HIV/AIDS. |
| level     |           |           |           |           |           |
| AIDS      |           |           |           |           |           |
| envoys to |           |           |           |           |           |
| engage on |           |           |           |           |           |
| HIV/AIDS  |           |           |           |           |           |
| issues at |           |           |           |           |           |
| the       |           |           |           |           |           |
| head      |           |           |           |           |           |
| -of-state |           |           |           |           |           |
| level.    |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Number of | No data   | 10        | 13        | Remaining | Remaining |
| HIPC      | a         |           |           | HIPC      | HIPC      |
| countries | vailable. |           |           | eligible  | eligible  |
| committed |           |           |           | countries | countries |
| to        |           |           |           | qualify   | qualify   |
| increase  |           |           |           | for and   | for and   |
| social    |           |           |           | receive   | receive   |
| and       |           |           |           | debt      | debt      |
| health    |           |           |           | relief;   | relief;   |
| spending. |           |           |           | those     | those     |
|           |           |           |           | that      | that      |
|           |           |           |           | began the | began the |
|           |           |           |           | process   | process   |
|           |           |           |           | sooner    | sooner    |
|           |           |           |           | receive   | receive   |
|           |           |           |           | debt      | debt      |
|           |           |           |           | stock     | stock     |
|           |           |           |           | r         | r         |
|           |           |           |           | eduction. | eduction. |
+-----------+-----------+-----------+-----------+-----------+-----------+

+-----------------------------------------------------------------------+
| ## Strategic Goal 17: Mutual Understanding                            |
|                                                                       |
| Improve and strengthen the international relations of the United      |
| States by promoting better mutual understanding between the people of |
| the United States and the peoples of the world through educational    |
| and cultural exchange.                                                |
+-----------------------------------------------------------------------+

The Smith-Mundt Act of 1948 and the Fulbright-Hays Act of 1961 ordain
that the Department should work "to increase mutual understanding
between the people of the U.S. and the people of other countries" in
order to "strengthen the ties that unite us with other nations." These
efforts to increase foreign understanding of the American people as well
as nation's policy priorities play an increasingly critical role in the
war on terrorism.

Work towards this broad strategic goal supports the Department's other
strategic aims, whether through academic exchanges such as the Fulbright
program or through invitations to future leaders in various fields of
expertise such as through the International Visitor Program. These
programs reinforce each other, either by educating foreigners about the
U.S. or by providing the opportunity for them to address specific policy
issues.

+-----------------------------------------------------------------------+
| #### Performance Goal 1:                                              |
|                                                                       |
| #### Improve and st                                                   |
| rengthen the international relations of the United States by promotin |
| g better mutual understanding between the people of the United States |
|  and peoples of the world through educational and cultural exchanges. |
+-----------------------------------------------------------------------+

The Department views the promotion of mutual understanding as a key
element in fostering long-term stability and prosperity. Educational and
cultural exchanges provide the essential underpinning and continuity for
the Department's efforts to conduct foreign policy and resolve crises
around the world. The Department's exchanges fall into three broad
categories: Academic (principally Fulbright), Citizen Exchange, and
International Visitor Programs.

Under the Fulbright program approximately 6,000 students of all ages and
levels of experience are annually given grants to study, either as
Americans learning about foreign cultures or as foreigners coming to
understand the U.S. Similarly, the International Visitor Program
provides for approximately 4,500 young mid-career professionals working
in politics, media, and the private sector to meet with their
counterparts in America, allowing for a rich and productive exchange of
ideas.

Citizen Exchange Programs link American non-profit organizations with
comparable overseas groups, allowing for joint, cross-cultural projects
which range in character from training senior Bosnian diplomats in
foreign affairs to organizing Zimbabwean women to vote. These exchange
programs provide a key service to the American people. By cultivating a
positive and more accurate picture of the U.S. abroad, the Department
fosters greater understanding between the American people and the people
of foreign nations. These programs also provide an opportunity to share
American values such as democracy, pluralism, civil liberties, and
market-based prosperity with influential citizens of developing or
politically transitioning nations.

Figure 51

Mutual Understanding Performance Goal 1: Key Indicators and Projected
Performance

  -------------- ------------ ----------- --------------- ------------- ---------------
  **Key          **1999       **2000      **2001 Actual** **2002        **2003
  Performance    Baseline**   Actual**                    Target**      Projected
  Indicator**                                                           Performance**

  Professional   60%          65%         97% rating of   Maintain      Maintain
  Program                                 highly          current       current
  Evaluations                             successful by   percentage.   percentage.
  registering a                           participants.                 
  "highly                                                               
  successful"                                                           
  rating.                                                               
  -------------- ------------ ----------- --------------- ------------- ---------------

+-----------------------------------------------------------------------+
| ## Strategic Goal 18: Human Resources                                 |
|                                                                       |
| An optimum number, distribution, and configuration of the             |
| Department's workforce both domestic and overseas under the highest   |
| quality leadership employed in response to the foreign policy         |
| priorities identified in the strategic plan.                          |
+-----------------------------------------------------------------------+

To maintain the U.S. role as a world leader in the 21^st^ century,
America's foreign policy representatives---the people of the
Department---must present the best the nation has to offer. The
Department must have sufficient resources to attract, train, promote,
and retain the very best employees. The Department's goal is to get the
right people, with the right skills, in the right place, at the right
time. At the same time, demographic changes and a varying economy
present labor market challenges to all public sector agencies.

The approximately 45,000 Foreign Service, Civil Service, and Foreign
Service National employees scattered throughout the world in over 300
different locations are the Department's most significant resource. With
this in mind, the Department has already begun to address the severe
imbalance due from an expanding workload and a diminishing labor force
in the 1990s through the Diplomatic Readiness Initiative, which began in
2002.

+-----------------------------------------------------------------------+
| #### Performance Goal 1:                                              |
|                                                                       |
| #### The                                                              |
|  Department will hire and retain an adequate number of talented, dive |
| rse Foreign and Civil Service and Foreign Service National employees. |
+-----------------------------------------------------------------------+

The Department is intent upon hiring and retaining the very finest
personnel available as Foreign Service, Civil Service, and Foreign
Service National employees. The role of the Department is more vital
than ever as the U.S. faces the myriad challenges of international
terrorism, periodic economic crisis, narcotics trafficking, and disease
epidemics, along with numerous others. Therefore, it is essential that
the employees of the Department---those who represent the American
people abroad and enact their policies---be the very best.

After years of downsizing following the Cold War, the Department has
launched its Diplomatic Readiness Initiative to expand hiring to meet
our critical staffing requirements. Thus far, the Department has been
highly successful in its recruiting campaign. The Department raised
hiring targets for 2001 and is well on its way to meeting even more
ambitious 2002 targets. Expanded recruitment efforts have increased
interest in the Department. Between September 2001 and April 2002, the
Department administered the Foreign Service Written Exam to a record
number of individuals. Recruiting has been targeted to attract
applicants for deficit areas, as well as applicants with needed skills
in languages and information technology. Strenuous efforts are also
being made to increase minority representation in both the Foreign and
Civil Services and on streamlining and simplifying the employment
application process at the Department.

In 2003, the Department will take the success in the Foreign Service
process and apply lessons learned to reengineering the Civil Service
process. The Department will also complete the Domestic Staffing Model
that contributes to our workforce planning capabilities. Finally, the
Department will take all appropriate steps, in cooperation with other
relevant U.S. government agencies, to ensure that Americans are
satisfactorily represented in multilateral organizations.

Figure 53

Human Resources Performance Goal 1: Key Indicators and Projected
Performance

+-------------+-------------+-------------+-------------+-------------+
| **Key       | **2000      | **2001      | **2002      | **2003      |
| Performance | Baseline**  | Actual**    | Target**    | Projected   |
| Indicator** |             |             |             | Pe          |
|             | **(1999 not |             |             | rformance** |
|             | a           |             |             |             |
|             | vailable)** |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Number of   | 8000        | 13,000      | 20,000      | 20,000      |
| individuals |             |             |             |             |
| taking the  | 3,028       | 3,695       | 3,200       | 3,300       |
| Foreign     |             |             |             |             |
| Service     | 1,450       | 1,787       | 1,510       | 1530        |
| Written     |             |             |             |             |
| Exam (FSWE) |             |             |             |             |
|             |             |             |             |             |
| Applicants  |             |             |             |             |
| to the      |             |             |             |             |
| Alternate   |             |             |             |             |
| Exam        |             |             |             |             |
| Program --  |             |             |             |             |
| Specialists |             |             |             |             |
|             |             |             |             |             |
| Applicants  |             |             |             |             |
| to the      |             |             |             |             |
| Student and |             |             |             |             |
| Specialist  |             |             |             |             |
| Programs -- |             |             |             |             |
| Student     |             |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
|             | Note: This  |             |             |             |
|             | indicator   |             |             |             |
|             | has been    |             |             |             |
|             | changed     |             |             |             |
|             | from test   |             |             |             |
|             | registrants |             |             |             |
|             | to test     |             |             |             |
|             | takers, as  |             |             |             |
|             | the         |             |             |             |
|             | Department  |             |             |             |
|             | believes    |             |             |             |
|             | that takers |             |             |             |
|             | of the exam |             |             |             |
|             | are a       |             |             |             |
|             | better      |             |             |             |
|             | indicator   |             |             |             |
|             | than        |             |             |             |
|             | registrants |             |             |             |
|             | of the      |             |             |             |
|             | ef          |             |             |             |
|             | fectiveness |             |             |             |
|             | of          |             |             |             |
|             | recruitment |             |             |             |
|             | efforts,    |             |             |             |
|             | because     |             |             |             |
|             | taking the  |             |             |             |
|             | exam is a   |             |             |             |
|             | much        |             |             |             |
|             | greater     |             |             |             |
|             | commitment  |             |             |             |
|             | and         |             |             |             |
|             | represents  |             |             |             |
|             | a greater   |             |             |             |
|             | interest in |             |             |             |
|             | employment. |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Minority    | 2100        | 4000        | 6000        | 7000        |
| FSWE Exam   |             |             |             |             |
| Takers      |             |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
|             | Note: This  |             |             |             |
|             | indicator   |             |             |             |
|             | has been    |             |             |             |
|             | changed     |             |             |             |
|             | from test   |             |             |             |
|             | registrants |             |             |             |
|             | to test     |             |             |             |
|             | takers, as  |             |             |             |
|             | the         |             |             |             |
|             | Department  |             |             |             |
|             | believes    |             |             |             |
|             | that takers |             |             |             |
|             | of the exam |             |             |             |
|             | are a       |             |             |             |
|             | better      |             |             |             |
|             | indicator   |             |             |             |
|             | than        |             |             |             |
|             | registrants |             |             |             |
|             | of the      |             |             |             |
|             | ef          |             |             |             |
|             | fectiveness |             |             |             |
|             | of          |             |             |             |
|             | recruitment |             |             |             |
|             | efforts,    |             |             |             |
|             | because     |             |             |             |
|             | taking the  |             |             |             |
|             | exam is a   |             |             |             |
|             | much        |             |             |             |
|             | greater     |             |             |             |
|             | commitment  |             |             |             |
|             | and         |             |             |             |
|             | represents  |             |             |             |
|             | a greater   |             |             |             |
|             | interest in |             |             |             |
|             | employment. |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Hiring      | Hiring to   | Hired to    | Hire 400    | Hire 400    |
| levels (to  | attrition   | attrition   | above       | above       |
| meet        |             |             | normal      | normal      |
| expanding   | (Approx.    | (Approx.    | intake;     | intake.     |
| priorities  | 800).       | 800); hired | hiring of   |             |
| and to      |             | additional  | additional  |             |
| provide a   |             | specialists | specialists |             |
| training    |             | in          | in          |             |
| float).     |             | security,   | security,   |             |
|             |             | consular    | consular    |             |
|             |             | affairs,    | affairs,    |             |
|             |             | and IT      | and IT      |             |
|             |             | programs.   | programs as |             |
|             |             |             | needed.     |             |
+-------------+-------------+-------------+-------------+-------------+

+-----------------------------------------------------------------------+
| #### Performance Goal 2:                                              |
|                                                                       |
| #### Develop                                                          |
|  and implement training and professional development programs and mak |
| e them available to all full time employees throughout their careers. |
+-----------------------------------------------------------------------+

With added strength through new hiring, the Department will be able to
release employees for training while still fulfilling daily work
requirements. The Department is working toward establishing mandatory
leadership and management milestones for career advancement. Employees
at all levels will be encouraged to follow training guidance and the
Department is beginning to provide all employees with appropriate
leadership and management training, a best practice in leading public
and private sector organizations and critical to succession planning.

The Department utilizes strategies to develop internal talent and direct
hiring of entry-level employees for career development programs in
deficit skill areas as well as running a robust SES Candidate
Development Program. The center for developmental programs is the
Foreign Service Institute (FSI), which supports the Department's
strategic goals and initiatives in counterterrorism, economics and
trade, science policy, global issues, and human rights. FSI ensures the
diplomatic readiness of the Department through training in leadership
and management, foreign language, area studies, and technical subjects
such as information technology.

Figure 54

Human Resources Performance Goal 2: Key Indicators and Projected
Performance

+-------------+-------------+-------------+-------------+-------------+
| **Key       | **2000      | **2001      | **2002      | **2003      |
| Performance | Baseline**  | Actual**    | Target**    | Projected   |
| Indicator** |             |             |             | Pe          |
|             | **(1999 not |             |             | rformance** |
|             | a           |             |             |             |
|             | vailable)** |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Progress    | New         | ######      | ######## F  | ##          |
| towards     | indicator   |  No mandato | ill all ava | ###### Expa |
| three-year  | in 2001.    | ry training | ilable trai | nd training |
| goal:       |             |  for superv | ning course |  capacity a |
| junior      |             | isors; no l | s at FSI; e | nd ensure 2 |
| officers    |             | eadership a | nsure junio | 5 percent o |
| and         |             | nd manageme | r officer t | f targeted  |
| mid-level   |             | nt training | raining inc | employees h |
| employees   |             |  continuum. | ludes expan | ave receive |
| have        |             |             | ding focus  | d training. |
| received    |             |             | on leadersh |             |
| appropriate |             |             | ip and mana |             |
| leadership  |             |             | gement skil |             |
| and         |             |             | ls; issue l |             |
| management  |             |             | eadership a |             |
| training.   |             |             | nd manageme |             |
|             |             |             | nt training |             |
|             |             |             |  continuum. |             |
+-------------+-------------+-------------+-------------+-------------+
| Percent of  | New         | ##          | ########    | ########    |
| employees   | indicator   | #### 83 per | Maintain an | Maintain an |
| assigned to | in 2001.    | cent met po | d/ or impro | d/ or impro |
| Language    |             | sition lang | ve current  | ve current  |
| -Designated |             | uage level. | percentage. | percentage. |
| positions   |             |             |             |             |
| that meet   |             |             | ########    | ########    |
| the         |             |             |             |             |
| requirement |             |             |             |             |
| of the      |             |             |             |             |
| position.   |             |             |             |             |
+-------------+-------------+-------------+-------------+-------------+

+-----------------------------------------------------------------------+
| #### Performance Goal 3:                                              |
|                                                                       |
| Current and new work-life programs improve the quality of the         |
| workplace for all employees and the quality of life of Foreign        |
| Service employees and their dependents abroad.                        |
+-----------------------------------------------------------------------+

To create a 21^st^ century workplace, the Department's goal is to
develop employee-friendly programs to recruit and retain the best
people. Finding practical means of developing, rewarding, and keeping
the finest Foreign Service employees is a constant challenge, given the
high demands often placed upon personnel both overseas and at home.

Therefore, the Department will work towards expanding programs that
address spousal employment, dependent care, work/life balance, health
and crisis response, and support of families overseas. These are only a
few of the numerous programs aimed at providing the men and women of the
Department with a work environment competitive with the best of the
private sector. Charged by the President and the Congress with a major
new hiring campaign, the Department can now provide its personnel with
the kind of work environment crucial to a well-functioning organization.

Figure 55

Human Resources Performance Goal 3: Key Indicators and Projected
Performance

+-------------+-------------+-------------+-------------+-------------+
| **Key       | **2000      | **2001      | **2002      | **2003      |
| Performance | Baseline**  | Actual**    | Target**    | Projected   |
| Indicator** |             |             |             | Pe          |
|             | **(1999 not |             |             | rformance** |
|             | a           |             |             |             |
|             | vailable)** |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Results of  | New         | New         | Acquire     | Use         |
| employee    | indicator.  | indicator.  | baseline    | employee    |
| s           |             |             | i           | survey      |
| atisfaction |             |             | nformation. | results to  |
| survey.     |             |             |             | evaluate    |
|             |             |             |             | and develop |
|             |             |             |             | programs.   |
+-------------+-------------+-------------+-------------+-------------+
| Percent of  | New         | New         | 1%          | Double      |
| eligible    | indicator.  | indicator.  |             | number of   |
| family      |             |             |             | spouses     |
| members     |             |             |             | employed on |
| employed in |             |             |             | local       |
| local       |             |             |             | economy.    |
| economies   |             |             |             |             |
| overseas    |             |             |             |             |
| through     |             |             |             |             |
| Spouse      |             |             |             |             |
| Networking  |             |             |             |             |
| Assistance  |             |             |             |             |
| Program     |             |             |             |             |
| (SNAP)      |             |             |             |             |
| program.    |             |             |             |             |
+-------------+-------------+-------------+-------------+-------------+

+-----------------------------------------------------------------------+
| ## Strategic Goal 19: Information Resources                           |
|                                                                       |
| Fully modernized, secure, and advantageous IT infrastructure and      |
| information systems, relying largely on commercial services and       |
| approaches, supporting the mission of the Department and the          |
| international community.                                              |
+-----------------------------------------------------------------------+

Advanced Information Technology (IT) is an absolute necessity for an
organization whose central function is the collection, interpretation,
and interchange of knowledge. As the sophistication of threats to the
U.S. increases, the Department must develop and deploy the highest
quality information technology systems.

+-----------------------------------------------------------------------+
| #### Performance Goal 1:                                              |
|                                                                       |
| #### Provide secure, advant                                           |
| ageous, commercial quality information technology support for the ful |
| l range of international affairs and activities of the United States. |
+-----------------------------------------------------------------------+

The Department is pursuing a disciplined, multiyear IT strategic plan
aimed towards deploying commercial-quality information technology
support systems. In compliance with the recommendations of several
independent sources, the Department applies e-business principles to the
conduct of foreign affairs.

The Department's IT Strategic and Performance Plan is organized around
two main concepts: virtual teaming and user empowerment. Virtual teaming
enables members of the international affairs community to collaborate
internally and with other governmental and private organizations in the
pursuit of U.S. aims. Through a secure network, Department employees
will be able to work together over great distances through knowledge
management, data mining, and web-based information access.

User empowerment will streamline many administrative and substantive
functions that historically required the participation of administrative
staff. Employees will now be able to access and update their own
personnel files, reducing paperwork and making the Department more
efficient. The Department is well underway towards instituting an
information system that provides security against outside penetration
while allowing for maximum flexibility within.

The protection of classified and sensitive information is a key
responsibility of the Department. National security information is
discussed in a variety of fora, from conference rooms to telephones to
web networks. Controlling deeply important information is a major
challenge, involving technical expertise and sensitizing employees to
the responsibility for the critical knowledge they possess. Efforts
toward this goal entail upgrading methods of securing classified
information, adequate staffing of Marine guards, and providing
protective walls around sensitive data on computers. In addition,
Department personnel must be trained to avoid situations that might
compromise classified information.

Figure 57

Information Resources Performance Goal 1: Key Indicators and Projected
Performance

+-------------+-------------+-------------+-------------+-------------+
| **Key       | **2000      | **2001      | **2002      | **2003      |
| Performance | Baseline**  | Actual**    | Target**    | Projected   |
| Indicator** |             |             |             | Pe          |
|             | **(1999 not |             |             | rformance** |
|             | a           |             |             |             |
|             | vailable)** |             |             |             |
+-------------+-------------+-------------+-------------+-------------+
| Status of   | Cu          | Some        | OpenNet+    | OpenNet+    |
| commercial  | stom-leased | progress    | pilot       | extended to |
| networking  | telecom     | made; 12    | period is   | 100% of     |
| facilities  | munications | Virtual     | completed   | existing    |
| available   | lines.      | Private     | and lessons | global      |
| for         |             | Networks    | learned     | OpenNet+    |
| u           | Limited     | (VPNs)      | documented. | sites.      |
| nclassified | bandwidth   | installed   |             |             |
| and         | and         | and         | Deployment  | 125 VPNs    |
| classified  | av          | OpenNet+    | to domestic | installed   |
| processing  | ailability. | pilot       | and         | by ENM.     |
| completed.  |             | completed.  | overseas    |             |
|             | ENM program |             | posts       | Network     |
| Network     | initiated   | Network     | begins.     | a           |
| av          | to          | a           |             | vailability |
| ailability. | consolidate | vailability | 50 VPNs     | to improve  |
|             | global      | of 85%      | installed.  | to 98%.     |
|             | network and | baselined   |             |             |
|             | systems     | by ENM.     | ENM         |             |
|             | management. |             | improves    |             |
|             |             |             | network     |             |
|             |             |             | a           |             |
|             |             |             | vailability |             |
|             |             |             | to 97%.     |             |
+-------------+-------------+-------------+-------------+-------------+
| Progress    | Unclass     | 1,875       | Program is  | Deployment  |
| toward      | ified---10% | desktops    | si          | of program  |
| replacing   |             | and 90      | gnificantly | is expanded |
| classified  | Class       | servers     | increased   | to all      |
| and         | ified---90% | replaced;   | for a surge | overseas    |
| u           |             | j           | in          | posts and   |
| nclassified |             | ump-started | in          | employees   |
| desktop     |             | replacement | stallations | needing it. |
| computers   |             | program for | in 2002 and |             |
| older than  |             | 2002.       | completion  |             |
| 4 years.    |             |             | in 2003.    |             |
+-------------+-------------+-------------+-------------+-------------+
| Number of   | Average     | Average     | Strategy    | Average     |
| overseas    | post had 12 | post had 16 | adopted for | post has 12 |
| servers.    | servers.    | servers.    | reducing    | servers.    |
|             |             |             | numbers of  |             |
|             |             |             | servers     | Initial use |
|             |             |             | through     | of          |
|             |             |             | co          | regio       |
|             |             |             | nsolidation | nal/central |
|             |             |             | (regi       | servers.    |
|             |             |             | onalization |             |
|             |             |             | and         |             |
|             |             |             | centr       |             |
|             |             |             | alization). |             |
+-------------+-------------+-------------+-------------+-------------+
| Progress    | Current     | Significant | Co          | Prototype   |
| toward      | cable       | progress    | mprehensive | tested.     |
| elimination | system      | made in     | r           |             |
| of the      | outmoded.   | preparing   | equirements | Final       |
| current     |             | groundwork  | analysis    | r           |
| cable       | CableXpress | for         | completed,  | equirements |
| system and  | deployed as | upgrade.    | steering    | determined, |
| processes.  | an interim  |             | committee   | system      |
|             | solution.   |             | formed,     | design      |
|             |             |             | users       | completed,  |
|             |             |             | consulted   | pilot       |
|             |             |             | to          | implemented |
|             |             |             | determine   | and         |
|             |             |             | re          | deployment  |
|             |             |             | quirements, | begun.      |
|             |             |             | BPR         |             |
|             |             |             | completed,  |             |
|             |             |             | and         |             |
|             |             |             | prototype   |             |
|             |             |             | developed.  |             |
+-------------+-------------+-------------+-------------+-------------+

+-----------------------------------------------------------------------+
| ## Strategic Goal 20: Infrastructure and Operations                   |
|                                                                       |
| Establish and maintain infrastructure and operating capacities that   |
| enable employees to pursue policy objectives and respond to crises.   |
+-----------------------------------------------------------------------+

To advance the interests of the U.S., the Department must maintain a
worldwide network of safe, secure, and functional facilities. A
sophisticated financial management infrastructure is also necessary to
manage these facilities and the overall operations of the Department.

With 13,000 facilities at 260 posts overseas and 90 facilities in the
U.S., the Department must manage properties in a wide variety of
political, economic, and cultural circumstances. It also must ensure
that its employees can live and conduct business safely and effectively,
even in dangerous or difficult locations.

A strong financial management infrastructure is essential to the ability
of regional, functional, and management bureaus to pursue all aspects of
the Department's mission including national security objectives.
Coherent interaction between the budget, accounting, payment, finance
and resource planning functions is critical to the Department\'s ability
to advance the foreign policy interests of the United States.

+-----------------------------------------------------------------------+
| #### Performance Goal 1:                                              |
|                                                                       |
| #### Safe, secure, and functional facilities.                         |
+-----------------------------------------------------------------------+

Attacks on American embassies and consulates constitute a very real
threat to the security and productivity of U.S. diplomats abroad. The
bombings in East Africa in 1998 and more recent assaults against targets
such as the consulate in Karachi, Pakistan, demonstrate that terrorists
can strike at any overseas post. To defend against such attacks, the
Department is undertaking a variety of measures, ranging from a major
capital construction campaign aimed at upgrading embassy and consulate
structures to improving technical counterintelligence and domestic
security efforts. The Emergency Security Appropriation (ESA) was the
first stage in the long-term drive towards improving the defenses of the
Department's overseas facilities.

The events of September 11 showed that it is not only the Department's
overseas Foreign Service officers who are at risk. Personnel at the 101
Department offices throughout the U.S., as well as those foreign
dignitaries under the Department's protection while visiting this
country, are threatened by terrorists who have demonstrated their
willingness to strike at America itself. In response to this peril, the
Department is improving the physical security of its installations in
the U.S. and giving the Diplomatic Security uniformed officers the tools
they need to defend the Department's personnel and facilities.

Figure 59

Infrastructure and Operations Performance Goal 1: Key Indicators and
Projected Performance

+------------------+------------+------------+------------+------------+
| **Key            | **2000     | **2001     | **2002     | **2003     |
| Performance      | Baseline** | Actual**   | Target**   | Projected  |
| Indicator**      |            |            |            | Per        |
|                  | **(1999    |            |            | formance** |
|                  | not        |            |            |            |
|                  | av         |            |            |            |
|                  | ailable)** |            |            |            |
+------------------+------------+------------+------------+------------+
| Percentage of 38 | 69%        | 90%        | 95%        | 97%        |
| ESA projects     |            |            |            |            |
| that have been   |            |            |            |            |
| completed.       |            |            |            |            |
+------------------+------------+------------+------------+------------+
| Number of        | 1,123      | 1,487      | 1,873      | 2,153      |
| Foreign Service  |            |            |            |            |
| Nationals        |            |            |            |            |
| trained in       |            |            |            |            |
| crisis           |            |            |            |            |
| management.      |            |            |            |            |
+------------------+------------+------------+------------+------------+
| Number of        | 100        | 100        | 189        | 300        |
| periodic         |            |            |            |            |
| reinvestigations |            |            |            |            |
| undertaken per   |            |            |            |            |
| month to meet    |            |            |            |            |
| 5-year           |            |            |            |            |
| requirement of   |            |            |            |            |
| Executive Order  |            |            |            |            |
| 12968.           |            |            |            |            |
+------------------+------------+------------+------------+------------+
| Percentage of    | 0%         | 20%        | 60%        | 100%       |
| access control   |            |            |            |            |
| system and newly |            |            |            |            |
| designed         |            |            |            |            |
| building passes  |            |            |            |            |
| in place at      |            |            |            |            |
| Harry S Truman   |            |            |            |            |
| building.        |            |            |            |            |
+------------------+------------+------------+------------+------------+
| Percent of       | 47%        | 70%        | 85%        | 100%       |
| projects         |            |            |            |            |
| completed under  |            |            |            |            |
| the Physical     |            |            |            |            |
| Security Upgrade |            |            |            |            |
| Program.         |            |            |            |            |
+------------------+------------+------------+------------+------------+
| Number of        | New        | New        | 9          | 9          |
| capital projects | indicator. | indicator. |            |            |
| awarded in       |            |            |            |            |
| accordance with  |            |            |            |            |
| the Long Range   |            |            |            |            |
| Overseas         |            |            |            |            |
| Buildings Plan   |            |            |            |            |
+------------------+------------+------------+------------+------------+
| Number of major  | New        | 3          | 14         | 7          |
| renovation       | indicator. |            |            |            |
| projects started |            |            |            |            |
| in construction. |            |            |            |            |
+------------------+------------+------------+------------+------------+

+-----------------------------------------------------------------------+
| #### Performance Goal 2:                                              |
|                                                                       |
| #### Cost-effective                                                   |
|  and energy-efficient facilities serving domestic and overseas staff. |
+-----------------------------------------------------------------------+

The domestic and overseas facilities of the Department provide a
workplace for thousands of employees who work in essential posts. The
development of new buildings and the upkeep of old ones are a major part
of the Department's infrastructure aims. The Department has adopted
specific strategies to accomplish these objectives, including improved
priority setting processes, implementation of the new Long-Range
Overseas Building Plan, and use of best industry practices. To ensure
that the U.S. Government has the property necessary to execute its
diplomatic goals, the Department is focusing on physical security
upgrades, new construction, and maintenance of assets both at home and
abroad. Work in the U.S. focuses on headquarters projects to consolidate
key offices in Foggy Bottom. This involves renovating the Harry S Truman
(HST) Building and accommodating the space needs generated by the
Foreign Affairs reorganization and the Bureau of Diplomatic Security.
(It also includes major construction projects, including a new U.S.
Mission to the United Nations.) The Department and the General Services
Administration (GSA) are partnering on structural security issues,
including blast resistant windows for key facilities and more functional
and aesthetic perimeter security in Foggy Bottom.

Figure 60

Infrastructure and Operations Performance Goal 2: Key Indicators and
Projected Performance

+-------------+----------+----------+----------+----------+----------+
| **Key       | **1999   | **2000   | **2001   | **2002   | **2003   |
| Performance | Ba       | Actual** | Actual** | Target** | P        |
| Indicator** | seline** |          |          |          | rojected |
|             |          |          |          |          | Perfo    |
|             |          |          |          |          | rmance** |
+-------------+----------+----------+----------+----------+----------+
| Foggy       | HST      | Phase 1A | Phase 1A | Phase 1A | Old      |
| Bottom      | Phase 1A | on       | Old      | Old      | State    |
| Con         | begins.  | s        | State    | State at | ren      |
| solidation: |          | chedule. | de       | 80%      | ovations |
|             |          |          | molition | dem      | start.   |
| Renovation  |          |          | begins.  | olition. |          |
| of HST.     |          |          |          |          |          |
+-------------+----------+----------+----------+----------+----------+
| Foreign     | Initial  | 100% of  | 50%      | Office   | 100%     |
| Affairs     | moves    | initial  | co       | ren      | design   |
| Reo         | u        | moves    | mpletion | ovations | for the  |
| rganization | nderway. | done.    | of       | co       | American |
| (State/     |          |          | office   | mpleted. | Pharma   |
| ACDA/USIA). |          |          | reno     |          | ceutical |
|             |          |          | vations. |          | Building |
|             |          |          |          |          | a        |
|             |          |          |          |          | ddition. |
|             |          |          |          |          | NFATC    |
|             |          |          |          |          | project  |
|             |          |          |          |          | cons     |
|             |          |          |          |          | truction |
|             |          |          |          |          | started. |
+-------------+----------+----------+----------+----------+----------+
| USUN New    | Planning | 50%      | 90%      | 98%      | Relocate |
| C           | co       | design   | design   | design   | staff;   |
| onstruction | mpleted. | level.   | level;   | level;   | GSA      |
| (indicators |          |          | interim  | interim  | de       |
| keyed to    |          |          | space    | space    | molition |
| GSA/DOS     |          |          | sought.  | sought.  | of       |
| funding     |          |          |          |          | existing |
| autho       |          |          |          |          | b        |
| rizations). |          |          |          |          | uilding. |
+-------------+----------+----------+----------+----------+----------+
| DS Space    | New      | New      | GSA      | Space    | Ren      |
| Con         | in       | in       | signed   | plans    | ovations |
| solidation. | dicator. | dicator. | 10-year  | a        | co       |
|             |          |          | lease.   | pproved; | mpleted; |
|             |          |          |          | 70%      | staff    |
|             |          |          |          | design.  | moved.   |
+-------------+----------+----------+----------+----------+----------+
| Annual      | New      | 330 BBTU | 317 BBTU | 302 BBTU | 299 BBTU |
| Billion     | In       |          |          |          |          |
| British     | dicator. | (3%      | (4%      | (5%      | (6%      |
| Thermal     |          | red      | red      | red      | red      |
| Unit (BBTU) |          | uction). | uction). | uction). | uction). |
| reduction   |          |          |          |          |          |
| rates.      |          |          |          |          |          |
+-------------+----------+----------+----------+----------+----------+

+-----------------------------------------------------------------------+
| #### Performance Goal 3:                                              |
|                                                                       |
| #### Adequate                                                         |
|  funding to achieve the Department's foreign policy and diplomatic re |
| adiness goals is founded on results-oriented budgeting, effective fin |
| ancial management systems, and demonstrated financial accountability. |
+-----------------------------------------------------------------------+

The Department is focusing on the enhancement, development, oversight,
and improvement of its budget and financial management infrastructure in
support of its Diplomatic Readiness platform. In response to the need to
expand and enhance its capacity for performance-based financial
management and planning, the Department will improve its financial
management systems and tools to integrate and better align the
Department's strategic, budget, and performance planning and execution
activities.

The Department will also implement a series of system improvements to
handle its financial demands. The Regional Financial Management and
Central Financial Planning Systems (CFPS) will allow for more
streamlined budgeting, financial planning, and reporting. CFPS will
enable performance and budget integration (President's Management
Agenda, Initiative #5). The consolidation of financial operations into
the Charleston Financial Service Complex will also increase the
efficiency of the Department's financial services.

Figure 61

Infrastructure and Operations Performance Goal 3: Key Indicators and
Projected Performance

+---------+-----------+-----------+-----------+-----------+----------+
| **Key   | **1999    | **2000    | **2001    | **2002    | **2003   |
| Perf    | B         | Actual**  | Actual**  | Target**  | P        |
| ormance | aseline** |           |           |           | rojected |
| Indi    |           |           |           |           | Perfo    |
| cator** |           |           |           |           | rmance** |
+---------+-----------+-----------+-----------+-----------+----------+
| Central | Central   | New       | New       | C         | Pilot    |
| Fi      | Financial | i         | i         | ompletion | testing  |
| nancial | Planning  | ndicator. | ndicator. | of        | is       |
| P       | System is |           |           | initial   | co       |
| lanning | developed |           |           | design,   | mpleted; |
| System  | and       |           |           | funding,  | phased   |
| (CFPS)  | tested.   |           |           | and       | de       |
| is      |           |           |           | pre       | ployment |
| de      |           |           |           | parations | begins.  |
| veloped |           |           |           | with      |          |
| and     |           |           |           | pilot     |          |
| imple   |           |           |           | bureau.   |          |
| mented. |           |           |           |           |          |
+---------+-----------+-----------+-----------+-----------+----------+
| On-time | See 2000. | FY 1999   | FY 2000   | FY 2001   | FY 2002  |
| annual  |           | S         | S         | S         | St       |
| fi      |           | tatements | tatements | tatements | atements |
| nancial |           | issued    | issued on | issued on | issued   |
| sta     |           | late      | time with | time with | on time  |
| tements |           | (June     | un        | un        | with     |
| that    |           | 2000)     | qualified | qualified | unq      |
| receive |           | with      | opinion.  | opinion.  | ualified |
| an      |           | un        |           |           | opinion. |
| unqu    |           | qualified |           |           |          |
| alified |           | opinion.  |           |           |          |
| o       |           |           |           |           |          |
| pinion. |           |           |           |           |          |
+---------+-----------+-----------+-----------+-----------+----------+
| Status  | 1998      | 1999      | 2000      | 2001      | 2002     |
| of      | Accou     | Accou     | Accou     | Accou     | Combined |
| Annual  | ntability | ntability | ntability | ntability | Per      |
| Account | Report    | Report    | Report    | Report    | formance |
| ability | issued    | issued    | issued on | issued on | and      |
| and     | late.     | late.     | time.     | time.     | Accoun   |
| Perf    |           |           |           | Report    | tability |
| ormance |           | Pe        | Pe        | receives  | Report   |
| R       |           | rformance | rformance | Ce        | s        |
| eports. |           | Report    | Report    | rtificate | ubmitted |
|         |           | issued on | issued on | of        | on time. |
|         |           | time.     | time.     | E         |          |
|         |           |           |           | xcellence | Report   |
|         |           |           |           | in        | receives |
|         |           |           |           | Accou     | Cer      |
|         |           |           |           | ntability | tificate |
|         |           |           |           | Reporting | of       |
|         |           |           |           | award.    | Ex       |
|         |           |           |           |           | cellence |
|         |           |           |           | Pe        | in       |
|         |           |           |           | rformance | Accoun   |
|         |           |           |           | Report    | tability |
|         |           |           |           | issued on | R        |
|         |           |           |           | time.     | eporting |
|         |           |           |           |           | award.   |
+---------+-----------+-----------+-----------+-----------+----------+
| Dep     | New       | USIA and  | D         | Imple     | Domestic |
| artment | i         | ACDA      | epartment | mentation | pr       |
| fi      | ndicator. | financial | approves  | plan      | ocessing |
| nancial |           | services  | transfer  | submitted | for      |
| s       |           | i         | of        | to OMB.   | American |
| ervices |           | ntegrated | certain   | Initial   | payroll  |
| conso   |           | into      | financial | imple     | and      |
| lidated |           | De        | m         | mentation | Foreign  |
| on      |           | partment. | anagement | of RFMS   | Service  |
| sc      |           |           | functions | in        | Pension  |
| hedule. |           | Foreign   | to FSC    | Ch        | r        |
|         |           | currency  | Ch        | arleston. | elocated |
|         |           | p         | arleston. |           | to       |
|         |           | urchasing |           | D         | Cha      |
|         |           | from FSC  | D         | epartment | rleston. |
|         |           | Paris and | epartment | took      |          |
|         |           | FSC       | approves  | occupancy | FSC      |
|         |           | Bangkok   | transfer  | of second | Paris    |
|         |           | con       | of FSC    | building  | serviced |
|         |           | solidated | Paris     | in        | posts    |
|         |           | to FSC    | post-     | C         | fully    |
|         |           | Ch        | servicing | harleston | c        |
|         |           | arleston. | to FSC    | complex   | onverted |
|         |           |           | C         | in April  | to FSC   |
|         |           |           | harleston | 2002.     | Ch       |
|         |           |           | and FSC   |           | arleston |
|         |           |           | Bangkok.  |           | and FSC  |
|         |           |           |           |           | Bangkok. |
+---------+-----------+-----------+-----------+-----------+----------+

+---------+-----------+-----------+-----------+-----------+----------+
| **Key   | **1999    | **2000    | **2001    | **2002    | **2003   |
| Perf    | B         | Actual**  | Actual**  | Target**  | P        |
| ormance | aseline** |           |           |           | rojected |
| Indi    |           |           |           |           | Perfo    |
| cator** |           |           |           |           | rmance** |
+---------+-----------+-----------+-----------+-----------+----------+
| Dep     | New       | IAD       | IAD used  | IAD used  | All      |
| artment | i         | developed | to        | to        | Posts,   |
| of      | ndicator. | by the    | produce   | produce   | Bureaus  |
| State   |           | De        | 90% of    | 100% the  | and      |
| and     |           | partment. | the 2002  | FY 2003   | Other    |
| Other   |           |           | Foreign   | Foreign   | Agencies |
| A       |           |           | O         | O         | provided |
| gencies |           |           | perations | perations | direct   |
| input   |           |           | budget.   | budget.   | access   |
| budget  |           |           |           |           | to IAD   |
| r       |           |           |           |           | to input |
| equests |           |           |           |           | budget   |
| d       |           |           |           |           | r        |
| irectly |           |           |           |           | equests. |
| into    |           |           |           |           |          |
| the     |           |           |           |           |          |
| Intern  |           |           |           |           |          |
| ational |           |           |           |           |          |
| Affairs |           |           |           |           |          |
| D       |           |           |           |           |          |
| atabase |           |           |           |           |          |
| (IAD).  |           |           |           |           |          |
+---------+-----------+-----------+-----------+-----------+----------+
| Aut     | New       | MPP and   | MPP and   | Finalize  | MPP      |
| omation | i         | BPP are   | BPP are   | plans to  | process  |
| of      | ndicator. | Microsoft | Microsoft | automate  | au       |
| i       |           | Word      | Word      | MPPs      | tomated. |
| nternal |           | d         | d         | including |          |
| p       |           | ocuments. | ocuments. | c         | Plan to  |
| lanning |           |           |           | onversion | automate |
| doc     |           | Resource  | Resource  | to        | BPP in   |
| uments: |           | tables    | tables    | web-based | place    |
| Mission |           | lack      | lack      | su        | with     |
| Perf    |           | controls. | controls. | bmissions | pilot    |
| ormance |           |           |           | and       | de       |
| Plans   |           |           |           | built-in  | veloped. |
| (MPP)   |           |           |           | controls  |          |
| and     |           |           |           | in        |          |
| Bureau  |           |           |           | resource  |          |
| Perf    |           |           |           | tables.   |          |
| ormance |           |           |           |           |          |
| Plans   |           |           |           |           |          |
| (BPP).  |           |           |           |           |          |
+---------+-----------+-----------+-----------+-----------+----------+

+-----------------------------------------------------------------------+
| #### Performance Goal 4:                                              |
|                                                                       |
| #### Better business practic                                          |
| es and increased focus on customers ensure excellence in the provisio |
| n of logistical, medical, records-management and associated services. |
+-----------------------------------------------------------------------+

It is critical that the Department's emergency and ongoing operations
are provided with quality administrative services in a timely fashion.
Department management, the bureaus, the posts, and other U.S. government
agencies all depend upon continued efforts to improve the delivery of
goods and services worldwide. The Department is, therefore, supporting
more innovative and web-based service delivery, improved responsiveness
to customers and professional development opportunities for management
and administrative personnel. The Center for Administrative Innovation
(A/CAI) was established to serve as a catalyst for change.

Figure 62

Infrastructure and Operations Performance Goal 4: Key Indicators and
Projected Performance

+----------------+---------+---------+---------+---------+---------+
| **Key          | **1999  | **2000  | **2001  | **2002  | **2003  |
| Performance    | Bas     | A       | A       | T       | Pr      |
| Indicator**    | eline** | ctual** | ctual** | arget** | ojected |
|                |         |         |         |         | Perfor  |
|                |         |         |         |         | mance** |
+----------------+---------+---------+---------+---------+---------+
| Innovations in | New     | 39      | 49      | 75      | 90      |
| service        | ind     |         |         |         |         |
| delivery and   | icator. | New     | New     | 20%     | 30%     |
| web-based      |         | ind     | ind     |         |         |
| technologies:  | New     | icator. | icator. |         |         |
|                | ind     |         |         |         |         |
| Number of      | icator. |         |         |         |         |
| offices and    |         |         |         |         |         |
| posts online   |         |         |         |         |         |
| using the      |         |         |         |         |         |
| Department's   |         |         |         |         |         |
| Statebuy       |         |         |         |         |         |
| Interactive    |         |         |         |         |         |
| Program.       |         |         |         |         |         |
|                |         |         |         |         |         |
| Percentage of  |         |         |         |         |         |
| service        |         |         |         |         |         |
| contracts      |         |         |         |         |         |
| using Quality  |         |         |         |         |         |
| Sourcing       |         |         |         |         |         |
| (performance   |         |         |         |         |         |
| based)         |         |         |         |         |         |
| s              |         |         |         |         |         |
| pecifications. |         |         |         |         |         |
+----------------+---------+---------+---------+---------+---------+

#  

# 5.0 Resources by Strategic Goal

The following charts allocate both Appropriations Act and Foreign
Operations resources by the Department's strategic goals.

![](media/image11.wmf){width="6.6in" height="1.0in"}

![](media/image13.wmf){width="5.864583333333333in" height="8.99375in"}

# ![](media/image14.wmf){width="5.993055555555555in" height="7.539583333333334in"}  {#section-12 .unnumbered}

# Appendix A: Performance Measurement Methodology

As stewards of Americans' tax dollars, the Department is committed and
focused on how best to utilize these resources to produce successful
results. To do so, the Department utilizes a four-tiered performance
methodology. (See Figure
61.)![](media/image17.wmf){width="3.1868055555555554in"
height="2.938888888888889in"}

-   ***Strategic Goals:*** The Department's highest performance level is
    strategic goals. These goals are the core objectives of the
    Department as laid out in the Department's Strategic Plan. The
    Department currently has 20 strategic goals (16 foreign
    policy-oriented and 4 focused on internal management.)

-   ***Performance Goals:*** The next level is performance goals that
    are statements outlining the desired outcome the Department is
    planning to achieve. Theoretically, achieving all of the Department
    performance goals would provide the outcomes necessary to reach the
    strategic goal. The Department currently has 44 Department
    performance goals.

-   ***Performance Indicators:*** The third level of the methodology is
    performance indicators that are the measures the Department utilizes
    to determine success in meeting the performance goals. The
    indicators are drawn from bureaus and mission performance plans.

-   ***Projected Performance:*** Finally, the Department has a fourth
    tier called projected performance. These are the specific results
    targeted for completion in a fiscal year. Where possible, projected
    performance is quantified to permit comparison between years.

The outcome of diplomacy is sometimes difficult to measure and
especially hard to quantify. It is not possible for the Department to
control all of the exogenous factors that merge together to affect
foreign policy. Achieving projected performance is dependent not only on
internal performance, but also on the events taking shape in countries
around the world. Even harder is isolating the role of the Department's
diplomatic efforts from other influences and external factors. Often
producing tangible benefits to the American public extends over numerous
years, and the impact is not immediately apparent. Likewise, some of the
Department's diplomatic efforts are proven successful by what does not
occur -- regional conflicts, war crimes, arms proliferation. As a
result, to demonstrate success the Department often has to prove the
negative event was a realistic possibility and then demonstrate that
diplomatic performance prevented it from happening.

Although it is often easier to "under-promise and over-deliver," the
Department chooses to establish realistic long-term ends so as better to
serve and inform the American people. With long-term strategic goals,
the Department is forced to utilize different types of performance
indicators based on the life stage of the targeted program. (See Figure
62.) For example, a new treaty on arms control might focus in the first
years on inputs and outputs such as the number of signatories to the
treaty. As the program progresses; however, the indicators will shift to
intermediate results that are linked ultimately to achieving the
strategic goal. In the arms control example, after all desired countries
have signed the treaty, the indicator might change to focus on the
implementation of destroying old warheads. The new indicator is an
intermediate result for achieving the performance goal "Develop a new
strategic framework that encompasses deployment of missile defenses and
further reductions in strategic offensive weapons and stockpiles."

![](media/image18.wmf){width="5.586111111111111in"
height="3.1319444444444446in"}

The Department strives to hold accountable each bureau and mission that
spends a taxpayer's dollar. The Department seeks to ensure that
performance is linked to progress on the strategic goals; progress that
is ultimately judged by investors---the American public. ***Section
4.0*** provides the detailed strategic goal summaries with all of the
key performance information.

The Fiscal Year 2003 Performance Plan is published by the

#### United State Department of State

Bureau of Resource Management, Office of Strategic and Performance
Planning

For additional copies please call (202) 647-8093

U.S. Department of State Publication 10990

Bureau of Resource Management

September 2002

Printed in Washington, D.C.

[^1]: All years referred to in this Performance Plan are fiscal years
    unless otherwise noted.

[^2]: This strategic goal framework was first outlined in the
    Department's Strategic Plan written in 1997 and updated in 2000. In
    the Fall of 2002, the Department will craft a new Department
    Strategic Plan. During this process, the Department will take a hard
    look at the strategic goals and the overall framework to ensure that
    they continue to tell the story of what the Department is and should
    be working hard to achieve.