19–010

Calendar No. 116

108TH CONGRESS REPORT

1st Session " ! SENATE 108–56

FOREIGN ASSISTANCE AUTHORIZATION ACT,

FISCAL YEAR 2004

MAY 29, 2003.—Ordered to be printed

Filed under authority of the order of the Senate of May 23, 2003.

Mr. LUGAR, from the Committee on Foreign Relations,

submitted the following

REPORT

[To accompany S. 1161]

The Committee on Foreign Relations, having had under consideration an original bill to authorize appropriations for foreign assistance programs for fiscal year 2004, reports favorably thereon with

amendments and recommends that the bill as amended do pass.

CONTENTS

Page

I. Purpose ........................................................................................................... 1

II. Committee Action .......................................................................................... 2

III. Funding for Foreign Operations Programs .................................................. 4

IV. Section-by-Section Analysis .......................................................................... 5

V. Regulatory Impact Statement ....................................................................... 34

VI. Cost Estimate ................................................................................................. 34

VII. Changes in Existing Law .............................................................................. 34

I. PURPOSE

The Foreign Assistance Authorization Act, Fiscal Year 2004, authorizes funding for a majority of United States economic, security

and humanitarian aid programs. In addition, it revises and updates

existing authorities to make them consistent with current practices. The bill authorizes full United States participation in several

multilateral development bank replenishments, and includes two

new initiatives, the Radiological Terrorism Threat Reduction Act,

and the Global Pathogen Surveillance Act.

II. COMMITTEE ACTION

The Committee held a series of public hearings this year focused

on the issues addressed in this legislation. On February 6, Sec-
2

retary of State Colin Powell testified regarding the President’s

budget request for international affairs. On March 18, State Department officials testified on the Department’s role as coordinator

of the non-military war on terrorism overseas. The non-proliferation programs of the Department were the focus of a hearing on

March 19. On March 26 and April 2, the Committee held two hearings on the role that U.S. foreign assistance can play in six regions

of the world: the Near East, South Asia, East Asia, Eurasia, the

Western Hemisphere, and Africa. At these two hearings, the Committee heard testimony from six regional Assistant Secretaries of

State and their United States Agency for International Development (USAID) counterparts. The Committee also held a hearing on

the President’s proposed Millennium Challenge Account on March

4. In other hearings and briefings on such issues as the UN Security Council deliberations on Iraq, developments on the Korean Peninsula, negotiations with Turkey, global hunger, plans for postconflict Iraq, and the difficult task of helping to build a prosperous

and stable Afghanistan, the Committee has probed issues related

to the authorization of foreign assistance.

In these hearings and briefings, the Committee examined how

the Administration’s 2004 budget request will support U.S. foreign

policy interests. This process was very informative for Committee

members as they undertook the task of writing a foreign assistance

authorization bill that carefully examines existing programs and

addresses emerging needs.

Since the mid-1980s, Congress has not fulfilled its responsibility

to pass an Omnibus Foreign Assistance Authorization Act. Several

discrete measures, such as the FREEDOM Support Act, the SEED

Act, Security Assistance Acts, and other assistance bills have been

enacted. But in the absence of a comprehensive authorization,

much of the responsibility for providing guidance for foreign assistance policy has fallen to the Appropriations Committees. Appropriators have kept our foreign assistance programs going, but in many

cases, they have had to do so without proper authorization. Appropriators have frequently had to waive the legal requirement for an

authorization bill.

The Senate Foreign Relations Committee intends that this legislation will help reinforce the Committee’s role in the foreign assistance process. We appreciate the cooperation and consultations provided by the State Department, USAID, and the Appropriations

Committee.

This legislation authorizes funding levels for most of the foreign

operations accounts within Function 150 for fiscal year 2004. The

Committee used the request submitted by the President last February as a starting point. The executive branch works with our embassies around the world to develop its budget requests. That information was supplemented by the hearings and briefings cited

above, as well as discussions associated with the State Department

authorization bill.

With this information, the Committee has reported a bill that

stays within the Budget Resolution’s funding levels. The Budget

Committee reduced the President’s requested amount for the Function 150 account by $1.15 billion. In response, the Chairman of the

Senate Foreign Relations Committee proposed an amendment to

the Budget Resolution that sought to restore this cut. That amend-
3

ment was successful in restoring the amount requested by the Administration for the Function 150 account. In this effort, the Foreign Relations Committee worked with the Budget Committee and

within the rules to achieve the final funding levels applicable to the

Function 150 account. Many members of the Committee would like

to have more funding available. Having worked within the Budget

process, however, the Committee has complied with the limits set

down in the Budget Resolution.

The Committee has made relatively few changes to the amounts requested by the President. This bill provides a $70 million increase to fund activities under the FREEDOM Support Act (FSA),

a $40 million increase for the Support for Eastern European Democracy (SEED) Act, a $15 million increase for Development Assistance, a $6 million increase for Peacekeeping Operations, and a

$100 million increase for the Non-proliferation, Anti-terrorism,

Demining and Related Programs (NADR) account.

On the other side of the ledger, the Committee made a small cut

in the Andean Counterdrug Initiative. It has been reduced from

$731 million to $700 million, the amount appropriated in the previous fiscal year. In addition, the Committee has authorized two

new contingency funds at the request of the President: the Complex

Foreign Crises Fund and the Famine Fund. But the Committee has

not authorized specific amounts for these Funds. The Committee

chose to address the President’s proposed Millennium Challenge

Account as a distinct bill, separate from the foreign assistance authorization bill.

At a Committee meeting on March 21, 2003, the Committee considered an original bill presented by the Chairman. A number of

amendments to the bill were adopted, by voice vote:

• An amendment by Senator Boxer expressing the policy of the

United States to work toward the participation of women in

the reconstruction of Iraq. • An amendment by Senator Dodd to add restrictions with respect to assistance to Colombia for fiscal year 2004. • An amendment by Senator Dodd to authorize assistance for

programs to educate children in Afghanistan and other affected

areas about the dangers of landmines and other unexploded ordinances. • An amendment by Senator Feingold to express the sense of the

Congress related to support for peaceful development in Sierra

Leone, to require a report on the feasibility of establishing a

United States Mission in Sierra Leone, and to authorize funds

in support of programs for Sierra Leone. • An amendment by Senator Feingold to authorize funds to support independent media in Ethiopia. • An amendment by Senator Feingold expressing the policy of

the United States to support accountability for human rights

abuses and crimes against humanity in Central Africa; to require a report on the actions taken by the United States to implement this policy; and to authorize funds to support the development of justice and reconciliation mechanisms in the region.

• An amendment by Senator Feingold to: authorize funds for

support of the African Contingency Operations Training and

Assistance Program (ACOTA); establish eligibility criteria for
4

participation in ACOTA; express the sense of Congress that the

Department of State should provide information about ACOTA

training to nationals of participating countries; and to express

the sense of Congress that the Department of State should provide to Congress a report on the performance and conduct of

military units receiving ACOTA assistance. • An amendment by Senator Feingold to impose a certification

condition on certain assistance to the Government of Indonesia

or the Indonesian Armed Forces. • An amendment by Senator Enzi to express the sense of Congress relating to exports of defense items to the United Kingdom. • An amendment by Senator Enzi to exempt certain transfers of

marketing information directly related to the sale of commercial communications satellites and related parts from the licensing requirements of the Arms Export Control Act.

The following amendment was adopted following a roll-call vote:

• An amendment by Senator Dodd to include certain nations of

the Caribbean Region to the list of countries eligible for assistance from the Combat HIV/AIDS Globally Fund, adopted by a

vote of 11 to 7. Ayes: Senators Hagel, Sununu, Biden, Sarbanes, Dodd, Kerry, Feingold, Boxer, Nelson, Rockefeller, and

Corzine. Nays: Senators Lugar, Chaffee, Allen, Enzi,

Voinovich, Alexander, and Coleman.

The Committee ordered the bill reported, as amended, by a vote

of 19 to 0. Ayes: Senators Lugar, Hagel, Chafee, Allen, Brownback,

Enzi, Voinovich, Alexander, Coleman, Sununu, Biden, Sarbanes,

Dodd, Kerry, Feingold, Boxer, Nelson, Rockefeller, and Corzine.

III. FUNDING FOR FOREIGN OPERATIONS PROGRAMS

FUNDING FOR FOREIGN OPERATIONS PROGRAMS

[in millions of U.S. dollars]

Foreign Operations Programs FY 03

Reg.1

FY 03

Sup.

FY 03

Total

FY 04

Request

FY 04

Auth.

TOTAL .................................................... 13,403 4,927 18,330 15,434 215,034

Child Survival and Health Programs Fund

(CSH) .......................................................... 1,825 90 1,915 1,495 1,495

Development Assistance ............................... 1,380 — 1,380 1,345 1,360

International Disaster Assistance ................ 288 144 432 236 236

Transition Initiatives .................................... 50 — 50 55 55

USAID Operating Expenses (OE) ................ 568 25 593 604 604

USAID Credit Programs ............................... 8 — 888

USAID Capital Investment Fund ................ 43 — 43 146 146

USAID Inspector General ............................. 33 — 33 35 35

Economic Support Fund (ESF) ..................... 2,255 2,422 4,677 2,535 2,535

Support for Eastern European Democracy

(SEED) ........................................................ 522 — 522 435 475

Assistance for the Independent States

(FSA/NIS) ................................................... 755 — 755 576 646

Inter-American Foundation .......................... 16 — 16 15 15

African Development Foundation ................ 19 — 19 18 18

Millennium Challenge Account .................... ——— 1,300 1,000

International Narcotics Control and Law

Enforcement (INCLE) ................................ 196 25 221 285 285

Andean Counterdrug Initiative (ACI) .......... 696 34 730 731 700
5

FUNDING FOR FOREIGN OPERATIONS PROGRAMS—CONTINUED

[in millions of U.S. dollars]

Foreign Operations Programs FY 03

Reg.1

FY 03

Sup.

FY 03

Total

FY 04

Request

FY 04

Auth.

Nonproliferation, Anti-Terrorism, Demining

(NADR) ....................................................... 304 28 332 385 485

Treasury Technical Assistance ..................... 11 — 11 14 14

International Military Education & Training (IMET) .................................................. 80 — 80 92 92

Foreign Military Financing (FMF) ............... 4,046 2,059 6,105 4,414 4,414

Peacekeeping Operations (PKO) .................. 114 100 214 95 101

International Organizations & Programs

(IO&P) 3 ...................................................... 194 — 194 315 315

U.S. Emergency Fund for Complex Foreign

Crises .......................................................... ——— 100 —

Famine Fund ................................................. ——— 200 —

1 Amounts adjusted to reflect a rescission of 0.65%

2The reduction to this account was necessary becuse of increases made to State Department

operating accounts in S. 925. 3FY 04 amounts include $120 million for UNICEF which was funded in FY03 in the CSH account.

IV. SECTION-BY-SECTION ANALYSIS

TITLE I—AUTHORIZATION OF APPROPRIATIONS

SUBTITLE A—DEVELOPMENT ASSISTANCE AND RELATED PROGRAMS

AUTHORIZATIONS

Sec. 101. Development Assistance

This section authorizes the appropriation of $1,360,000,000 for

Development Assistance programs as requested, including programs in the agriculture, education, environment sectors, as well

as the Development Fund for Africa. Although there are various

separate accounts in the Foreign Assistance Act authorizing Development Assistance, funding for those accounts has been consolidated into this single account and appropriated in this manner in

recent years.

Sec. 102. Child Survival and Health Programs Fund

This section authorizes the appropriation of $1,495,000,000 for

child survival, health, and family planning programs for fiscal year

2004, the same amount as proposed by the President. This account

provides funding for a variety of accounts that are separately authorized in the Foreign Assistance Act but have been appropriated

out of this single account in recent years.

Sec. 103. Development Credit Authority

This section amends the Foreign Assistance Act to provide the

President authority to provide assistance in the form of loans and

partial loan guarantees to private lenders in developing countries

to achieve economic development purposes. Authority for this program has been included in appropriations acts over the past several years. This section also provides that funds available for the

purposes of economic assistance under the Foreign Assistance Act

and for assistance under the Support for Eastern European Democracy Act in Fiscal Year 2004 may be used to provide loans and partial loan guarantees under this section. It authorizes the appropria-
6

tion for administrative expenses to carry out this section for Fiscal

Year 2004.

This section also authorizes not more than $21,000,000 of the

funds made available for fiscal year 2004 for economic assistance,

including assistance for the former Soviet Union and Eastern Europe, for loans and loan guarantees in order to carry out the economic assistance objectives of the Foreign Assistance Act.

Sec. 104. Program to Provide Technical Assistance to Foreign Governments and Foreign Central Banks of Developing or Transitional Countries

This section authorizes the appropriation of $14,000,000 for fiscal

year 2004 for the Department of the Treasury’s program to provide

technical assistance to foreign governments and foreign central

banks in developing or transitional countries.

Sec. 105. International Organizations and Programs

This section authorizes the appropriation of $314,500,000 for fiscal year 2004 for voluntary contributions to international organizations and programs. This is the same as proposed by the President.

Sec. 106. Continued Availability of Certain Funds Withheld From

International Organizations

This section tracks authority provided in recent appropriations

acts whereby any funds available in any fiscal year to carry out the

provisions of this chapter that are returned or withheld from international organizations and programs as a result of the restrictions

of section 307 of the Foreign Assistance Act shall remain available

for obligation until the end of the following fiscal year for which

such funds were appropriated.

Sec. 107. International Disaster Assistance

This section authorizes the appropriation of $235,500,000 for fiscal year 2004 for international disaster assistance, the same as requested by the President.

Sec. 108. Transition Initiatives

This section authorizes the appropriation of $55,000,000, as proposed, for fiscal year 2004 for the Transition Initiatives Program

administered by USAID, including assistance to develop, strengthen and preserve democratic institutions and processes, revitalize

basic infrastructure, and foster the peaceful resolution of conflict.

Although this program has not been specifically authorized in the

Foreign Assistance Act, funds have been appropriated for this activity since 1994 when USAID established the Office of Transition

Initiatives.

Sec. 109. Famine Assistance

This section authorizes the appropriation of such sums as may

be necessary for fiscal year 2004 for a new Famine Fund, requested

for the first time for fiscal year 2004. Assistance is authorized for

famine prevention and relief, including mitigation of the effects of

famine. The President is to provide fifteen-day advance notification

to the authorization and appropriations committees each time the

authority is used.
7

Sec. 110. Assistance for the Independent States of the Former Soviet

Union

This section authorizes the appropriation of $646,000,000 for fiscal year 2004 for assistance for the independent states of the

former Soviet Union under the Freedom Support Act. The Committee received a request of $576 million for programs

in the Freedom Support Act (FSA) account for the Newly Independent States of the former Soviet Union for Fiscal Year 2004.

The Committee notes that the Administration’s request is $184

million below the appropriated level of Fiscal Year 2003. The request for this account is substantially lower than previous years.

The Committee recommends a $70 million increase for this account, to total $646 million.

The Committee believes that the Administration’s proposed cuts

in funding for assistance under the FSA are too steep and, if implemented, would seriously harm U.S. interests in stability, democracy and market reform in the Newly Independent States. The additional funding authorized is primarily intended to increase resources available for programs to support democratic development,

civil society, and market reform in the former Soviet states. The

Committee also supports using additional funds to bolster counternarcotics programs underway in Central Asian states bordering Afghanistan which are critical to maintaining stability in that region.

The Committee urges the Administration to ensure that funding

for Educational and Cultural Exchanges (ECE) Account programs,

in the FSA countries, which are now funded in the State Department Authorization bill, are maintained at fiscal year 2003 levels.

Since the passage of the FSA, funds have been committed to help

support non-governmental organizations that focus on environmental issues. The environmental impact from the weapons of

mass destruction and their means of delivery created by the former

Soviet Union continues to be a major problem. As the State Department and USAID work toward a policy of graduation for the Newly

Independent States from a number of development programs, the

Committee believes that environmental issues should continue to

play an important role in the development of stable, civil societies.

Sec. 111. Assistance for Eastern Europe and the Baltic States

This section authorizes the appropriation of $475,000,000 for fiscal year 2004 for assistance for Eastern Europe and the Baltic

states, under the Support for East European Democracy (SEED)

and the Foreign Assistance Act.

The President requested $435 million for the Support for Eastern

Europe Democracies (SEED) account for Fiscal Year 2004. The

Committee notes that this request is $90 million below the appropriated level for Fiscal Year 2003, substantially lower than previous years. The Committee recommends an increase of $40 million, to total $475 million, which the Committee believes is vital to

assisting Europe’s eastern half achieve democracy and free market

economies.

The Committee believes that these proposed cuts in funding for

assistance under the SEED account are too steep and, if implemented, would seriously harm U.S. interests in a vitally important

region still recovering from three Balkan wars in the 1990s. The

additional funding is primarily intended to increase resources
8

available for programs to enhance law enforcement to combat organized crime in the Balkans and security on the ground for U.S.

peacekeeping troops in Kosovo and Bosnia, and to speed up the stabilization process in the countries of the former Yugoslavia and in

Albania. The additional funding would also be used to assist with

market reform programs in European Union (EU) candidate countries, Bulgaria and Romania, to maximize their potential for successful and timely entry into the EU, and to assist them in addressing the challenges of organized crime and corruption. The

Committee urges the Administration to ensure that funding for

Educational and Cultural Exchanges (ECE) Account programs, in

the SEED countries, which are now funded in the State Department Authorization bill, are maintained at a robust level.

Sec. 112. Operating Expenses of the United States Agency for International Development

This section authorizes the appropriation of $750,400,000 for fiscal year 2004 for the operating expenses of the United States Agency for International Development, the same amount requested. Of

this total, $146,300,000 is authorized to be appropriated for overseas construction and related costs and for enhancement of information technology and related investments. In addition,

$35,000,000 is authorized to be appropriated for operational costs

of the Office of Inspector General of the Agency.

SUBTITLE B—COUNTERNARCOTICS, SECURITY ASSISTANCE, AND

RELATED PROGRAMS AUTHORIZATIONS

Sec. 121. Complex Foreign Contingencies

This section amends the Foreign Assistance Act to authorize the

establishment of a complex foreign contingencies fund. The fund

can be used to support a range of foreign assistance activities including support for peace and humanitarian intervention operations to prevent or respond to foreign territorial disputes, armed

ethnic and civil conflicts that pose threats to regional and international peace, and acts of ethnic cleansing, mass killing or genocide. The President is required to notify the relevant committees of

the Congress at least 5 days prior to the obligation of funds from

the Fund.

The President currently has the authority under the Foreign Assistance Act to provide assistance when crises occur, but this authority does not provide funding with which to address those crises.

Currently, in order to address such events, the administration is

required to reprogram funds from other accounts, most of which

have already been cut to a level that threatens program efficacy.

This fund would permit the President, during times of crises, to

continue funding at an appropriate level those programs that the

Committee supports, while at the same time having the resources

to address immediate and unanticipated crises. The Committee expects that the Administration will consult extensively with the

Committee prior to exercising this authority.

Sec. 122. International Narcotics Control and Law Enforcement

Subsection (a) of this section authorizes the appropriation of

$985,000,000 for fiscal year 2004 for international narcotics control
9

and law enforcement assistance, of which $700,000,000 is authorized to be appropriated for the Andean Counterdrug Initiative. This

is a reduction of $30,500,000 from the request.

Subsection (b) restates current law by permitting funds under

this section to be provided for assistance to the Government of Colombia and used, notwithstanding any other provision of law, to

support a unified campaign against narcotics trafficking and terrorist activities, and to take actions to protect human health and

welfare in emergency circumstances. The provision maintains the

current ceiling of 400 each on the numbers of U.S. civilian and

military personnel in Colombia and precludes their participation in

any combat operation in connection with such assistance. It also

continues conditions on assistance with respect to the Government

of Colombia’s human rights practices, conditions which are currently in effect for fiscal year 2003.

Sec. 123. Economic Support Fund

The Committee has authorized in subsection (a) of this section

the appropriation of $2,535,000,000 for fiscal year 2004 for Economic Support Fund (ESF) programs. The Committee supports the

full request level for Economic Support Funds to provide assistance

to allies and countries in transition to democracy, to support the

Middle East peace process, including the Administration’s efforts to

make progress under the Road Map, and to finance economic stabilization programs.

The Committee has, in subsection (b), amended the Security Assistance Act of 2000 to authorize ESF assistance to continue strong

support for Israel’s economic and political stability and to redress

the economic impact of Israel’s isolation in the volatile Middle East

region. The Committee recognizes that the Administration continues to phase out U.S. economic assistance to Israel and encourages Israel’s efforts to increase the role of the private sector, promote productive investment, reform taxes and promote more efficient use of resources. This assistance contributes to Israel’s economic growth, enhances Israel’s ability to repay its debt to the

United States and opens new investment opportunities for U.S. investment and exports.

The Committee has amended the Security Assistance Act of 2000

to authorize ESF assistance to continue strong support for stability

and prosperity in Egypt. The Committee recognizes Egypt is a key

partner in the region and elements of this assistance may be integrated into the Middle East Partnership Initiative. This ESF will

help reinvigorate economic development and foster economic reforms, alleviate poverty, and support development of democratic institutions and bolster public health services.

Sec. 124. International Military Education and Training

This section authorizes the appropriation of $91,700,000 for fiscal

year 2004 for International Military Education and Training programs, the same as the request.

The Committee is encouraged by the executive branch’s careful

approach to security assistance for Nigeria, in accordance with section 557 of the Foreign Operations Export Financing, and Related

Programs Appropriations Act of 2003 (P.L. 108–007). The Committee believes that concrete progress on accountability for abuses
10

of civilians reportedly perpetrated by the Nigerian military will

demonstrate a shared commitment to professionalism and respect

for basic human rights, restoring confidence in the U.S.-Nigerian

security assistance relationship.

Sec. 125. Peacekeeping Operations

This section authorizes the appropriation for fiscal year 2004 of

$101,900,000 for voluntary Peacekeeping Operations programs. The

Committee notes with concern that the budget request for fiscal

year 2004, in the amount of $94.9 million, is 30 percent less than

fiscal year 2002 and 18 percent less than regular 2003 appropriations. The Committee is concerned that such a significant reduction

in funding over the last few years does not properly reflect any

diminution of conflict, especially in Sub-Saharan Africa, and has

therefore provided an additional $6 million above the President’s

request for this account.

The Committee recognizes the importance placed on support for

voluntary peacekeeping activities as a critical aspect of national security that is responsive and flexible. It supports the understanding that well-funded peacekeeping operations can also assist

in the broader war on terrorism, as terrorist organizations often fill

the political and social void created by conflict. The African continent has seen a sharp reduction in the peacekeeping budget from

nearly $55 million in fiscal year 2002, to $40 million in 2003, to

$24 million for 2004. The Committee is concerned that after fulfilling the planned funding of $15 million for training regional

peacekeepers through the Africa Contingency Operations Training

and Assistance (ACOTA) program, there will only be $9 million remaining for ongoing crises and potential hotspots across the entire

continent. The Committee is further concerned that past investments in ongoing peacekeeping and conflict resolution programs in

the Mano River region of West Africa, Cote d’Ivoire, Burundi, and

in Democratic Republic of the Congo, as well as other areas, risk

being lost completely. The Committee recognizes the particular

value of such programming reducing the likelihood of expensive

international interventions.

Sec. 126. Nonproliferation, Anti-Terrorism, Demining, and Related

Assistance

The budget request for fiscal year 2004 for the NADR account totaled $385.2 million, an amount that is $78.8 million higher than

the original fiscal year 2003 request ($50.8 million higher including

the emergency supplemental). The Committee authorizes $485.2

million for fiscal year 2004 for the NADR account, an increase of

$100.0 million over the amount of the budget request. In keeping

with appropriations legislation over the past several years, this section consolidates the authorization of appropriations for nonproliferation, anti-terrorism, demining and certain related functions into a single account.

The Committee recommends the authorization for this account be

allocated as follows:
11

($ in

thousands)

Nonproliferation and Disarmament Fund ................................ $45,000

Export Control and Border Security ......................................... $45,000

Science Centers and Bioredirection .......................................... $69,000

IAEA Voluntary Contribution ................................................... $50,000

International Monitoring System (CTBT) ................................ $19,300

Anti-Terrorism Assistance ......................................................... $116,400

Terrorist Interdiction Program .................................................. $14,000

CT Engagement with Allies ....................................................... $2,500

Humanitarian Demining Program ............................................ $60,000

International Trust Fund for Demining ................................... $10,000

Small Arms/Light Weapons Destruction .................................. $4,000

Radiological Terrorism Threat Reduction Act .......................... $15,000

Global Pathogen Surveillance Act ............................................. $35,000

The increased authorization level above the President’s request

for this account reflects the Committee’s strong support for efforts

contained in this account: efforts to prevent the spread of weapons

of mass destruction, their materials, and associated knowledge; the

need to educate and assist other countries in effective export controls and border security; the necessity to provide adequate support

for the war on terrorism; the value of humanitarian demining and

small arms/light weapons destruction; the urgency of reducing the

international threat posed by radiological dispersion devices; and

the importance of enhancing assistance to developing countries to

better monitor and contain infectious disease epidemics.

The Committee notes that the Department of State has been increasing its efforts to work with countries on a regional basis to improve their anti-terrorism and border control capabilities. The triborder region of Latin America (Argentina, Brazil and Paraguay) is

a prime example. The United States takes part in annual meetings

with these three countries and has sent teams to consult with local

officials. FY 2002 supplemental funds provided $1 million for a

needs assessment in the tri-border area, limited training and enhancements to bridge gaps in information sharing about persons

suspected of involvement in international terrorist groups.

The Committee urges the Department to follow up these efforts,

in conjunction with other interested Departments, and to pay particular attention to training and related equipment for countering

terrorist financing, transnational crime intelligence sharing, and

border security in the tri-border area. More broadly, the committee

also urges the Department to work closely with other U.S. Government agencies, the United Nations Counter-Terrorism Committee,

and regional groups, such as the Organization of American States’

CICTE and CICAD, to help countries strengthen their

counterterrorism capabilities, including improving their

counterterrorism laws, regulations and implementation capabilities.
12

Sec. 127. Foreign Military Financing Program

Subsection (a) of this section authorizes the appropriation of $4,414,000,000 for fiscal year 2004 for Foreign Military Financing

programs, as requested.

Subsection (b) amends the Security Assistance Act of 2000 to authorize the appropriation for fiscal year 2004 of FMF assistance for

Israel, to require rapid disbursement of that assistance, and to increase the level of offshore procurement allowable with FMF funds

made available in fiscal year 2004 for Israel.

Subsection (c) amends the Security Assistance Act of 2000 to authorize FMF assistance for Egypt and continues the requirement to

disburse FMF assistance for Egypt in an interest-bearing account.

SUBTITLE C—INDEPENDENT AGENCIES AUTHORIZATIONS

Trade and Development Agency.—Current law provides permanent authorization of such sums as may be necessary for the Trade

and Development Agency. This authorization was provided as part

of the Export Enhancement Act of 1999, which also authorized

funding for the Overseas Private Investment Corporation. The

Committee recommends funding of $65 million for the Trade and

Development Agency for fiscal year 2004. This amount is $5 million

above the budget request. The Committee recommends that the additional amount be directed to trade capacity building assistance.

In fiscal year 2003, the Congress provided an additional $2.5 million for the Trade and Development Agency for trade capacity

building assistance. This year the United States has initiated negotiations on free trade agreements with Australia, Morocco, the Central American countries of Costa Rica, El Salvador, Guatemala,

Honduras, and Nicaragua, and the Southern African Customs

Union countries of Botswana, Lesotho, Namibia, South Africa, and

Swaziland. The Administration has recently indicated that it will

initiate negotiations on a free trade agreement with Bahrain. The

dramatic increase in the number of free trade agreements that the

United States is negotiating with developing countries necessitates

an increase in funding for trade capacity building assistance designed to enhance these countries’ abilities to participate fully in

the negotiations and to derive the benefits of any resulting agreements.

Sec. 131. Inter-American Foundation

This section authorizes the appropriation of $15,185,000 for fiscal

year 2004 for the Inter-American Foundation. This is identical to

the President’s request.

Sec. 132. African Development Foundation

This section authorizes the appropriation of $17,689,000, as requested, for fiscal year 2004 for the African Development Foundation.

SUBTITLE D—MULTILATERAL DEVELOPMENT BANK AUTHORIZATIONS

Sec. 141. Contribution to the Seventh Replenishment of The Asian

Development Fund

This section amends the Asian Development Bank Act to authorize the United States contribution to the seventh replenishment of
13

the Asian Development Fund, the concessional lending arm of the

Asian Development Bank. It authorizes the appropriation without

fiscal year limitation and the contribution of $412 million for payment by the Secretary of the Treasury to the Asian Development

Fund to satisfy fully the four-year United States commitment to

the seventh replenishment.

Sec. 142. Contribution to the Thirteenth Replenishment of the International Development Association

This section amends the International Development Association

Act (22 U.S.C. 284 et seq.) to authorize the United States contribution to the thirteenth replenishment of the International Development Association, the concessional lending arm of the World Bank.

It authorizes the appropriation without fiscal year limitation and

the contribution of $2.85 billion for payment by the Secretary of the

Treasury to the International Development Association to satisfy

fully the three-year United States commitment to the thirteenth replenishment.

As part of the agreement establishing the thirteenth replenishment of the International Development Association, the United

States achieved agreement to enhance the institutional focus on

performance and results measurement. The United States developed a performance-based contribution structure under which the

United States will provide an additional $100 million in fiscal year

2004 and an additional $200 million in fiscal year 2005 if the International Development Association meets certain performance targets.

Subsection (c) of the amendment contained in this section supports the United States efforts to enhance transparency and accountability at the multilateral development institutions. Paragraph (1) states the policy of the United States that each multilateral development institution that has a United States Executive

Director should adopt certain policies designed to enhance transparency and accountability. Paragraph (2) establishes an implementation goal for the adoption of these policies prior to the conclusion of the thirteenth replenishment of the International Development Association on June 30, 2005. Paragraph (3) calls on the Secretary of the Treasury or his representative to brief the Committee

on Foreign Relations of the Senate and the Committee on Financial

Services of the House at their request on the steps taken to implement the measures described in this subsection. Paragraph (4) calls

on the Secretary of the Treasury to publish the written statements

of the United States Executive Directors in board meetings concerning projects on which claims have been made to the institution’s inspection mechanism or where board decisions on inspection

mechanism cases are being taken no later than sixty calendar days

after such meeting. Paragraph (4) further calls on the Treasury Department to publish a record of all votes and abstentions made by

the United States Executive Directors on its website each month.

Sec. 143. Contribution to the Ninth Replenishment of the African

Development Fund

This section amends the African Development Fund Act to authorize the United States contribution to the ninth replenishment

of the African Development Fund, the concessional lending arm of
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the African Development Bank. It authorizes the appropriation

without fiscal year limitation and the contribution of $354 million

for payment by the Secretary of the Treasury to the African Development Fund to satisfy fully the three-year United States commitment to the ninth replenishment.

SUBTITLE E—AUTHORIZATION FOR IRAQ RELIEF AND RECONSTRUCTION

Sec. 151. Authorization of Assistance for Relief and Reconstruction

Efforts

The Committee recognizes that the United States and Coalition

Forces’ decisive, quick military success in Iraq, with minimal loss

of life, was only a first step toward victory in Iraq. The Committee

strongly supports the Administration’s efforts to ensure that a new,

independent, stable, democratic and self-sufficient Iraq emerges

from this military success. The Committee expects, however, that

this effort will take years, require more personnel and equipment

resources than anticipated and will be a difficult and expensive

process.

This section authorizes the $2,475,000,000 appropriated in the

fiscal year 2003 Emergency Wartime Supplemental Appropriations

Act for humanitarian assistance in and around Iraq and rehabilitation and reconstruction in Iraq for use through fiscal year 2004. It

also specifies that this assistance is authorized for the purposes

provided for in the Supplemental Appropriations Act. These funds

also are authorized to be used to reimburse accounts for obligations

incurred for these purposes prior to the enactment of this Act. Finally, the bill contains a statement that it is United States policy

to work toward the full and active participation of women in the

reconstruction of Iraq by promoting the involvement of women in

all levels of Government and decision making bodies, the planning

and distribution of assistance, and job promotion and training programs.

Sec. 152. Reporting and Consultation

The Committee has expressed concerns about inadequate planning and the lack of information provided on the planning and execution of Iraq stabilization and reconstruction efforts. The Committee expects greater transparency and more regular consultations on these issues to ensure the Committee can perform its oversight function and inform the American people whose continued

support is essential for the success of U.S. efforts in Iraq.

This section provides that any requirements in the Supplemental

Appropriations Act requiring reporting to or consultation with the

Appropriations Committees with respect to funds appropriated to

carry out this section shall require the same reporting to and consultation with the Senate Foreign Relations Committee and the

House International Relations Committee.

Sec. 153. Special Assistance Authority

Recognizing the uncertainty of circumstances in Iraq and the existing laws that restrict provision of assistance to Iraq, the Committee has provided flexibility to carry out Iraq relief and reconstruction efforts. This section authorizes the President to provide

assistance to Iraq notwithstanding any other provision of law.
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Sec. 154. Inapplicability of Certain Restrictions

To ensure flexibility for Iraq relief and reconstruction efforts, this

section authorizes the President to suspend or otherwise make inapplicable to Iraq certain restrictions on assistance or exports to

Iraq, including restrictions under the Iraq Sanctions Act, restrictions that apply to countries that have supported terrorism, and restrictions on the export of non-lethal military equipment. This section also makes permanently inapplicable to Iraq provisions of law

that require the United States to withhold its proportionate share

of funding for international organization programs for Iraq and direct U.S. opposition to loans or assistance to Iraq by International

Financial Institutions.

Sec. 155. Termination of Authorities

The Committee believes that the relief and reconstruction efforts

in Iraq will require a long-term U.S. commitment to complete. This

section provides that certain authorities contained in sections 153

and 154 will expire two years after the enactment of this Act. The

Supplemental Appropriations Act provides the President these

same authorities, but provides that they will expire no later than

September 30, 2004. The Committee intends to monitor the relief

and reconstruction efforts and will authorize funds and extend authorities as appropriate.

TITLE II—AMENDMENTS TO GENERAL FOREIGN

ASSISTANCE AUTHORITIES

SUBTITLE A—FOREIGN ASSISTANCE ACT AMENDMENTS AND RELATED

PROVISIONS

Sec. 201. Development Policy

This section amends the Foreign Assistance Act’s Statement of

Development Assistance Policy to recognize the importance of public-private partnerships in maximizing resources available for foreign assistance activities.

Sec. 202. Assistance for Nongovernmental Organizations

This section amends the Foreign Assistance Act to make permanent an authority that has been contained for a number of years

in annual foreign assistance appropriations and which is similar to

the current section 123(e) of the Foreign Assistance Act.

New subsection (e)(1) states that restrictions on assistance to a

country are not to be construed to bar assistance to that country

that is provided through nongovernmental organizations using

funds provided for development assistance, assistance for Eastern

Europe and the former Soviet Union, and Economic Support Fund

assistance.

New subsection (e)(2) requires notification to the relevant Committees 15 days in advance of the obligation of funds pursuant to

this authority.

New subsection (e)(3) clarifies that this authority may not be

used to furnish assistance through nongovernmental organizations

to the central government of a country. Although prohibitions on

assistance to the government of a country normally would apply to

all levels of government in a country, this provision makes it clear
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that for purposes of the authority provided in this subsection, assistance through nongovernmental organizations could be provided

to levels of government below the national level.

Sec. 203. Authority for Use of Funds for Unanticipated Contingencies

This section amends section 451 of the Foreign Assistance Act to

permit this authority to be applied to the use of funding made

available to carry out the Arms Export Control Act, and to raise

the annual ceiling on the use of this authority to $50 million.

Sec. 204. Authority to Accept Lethal Excess Property

This section amends section 482(g) of the Foreign Assistance Act

to permit the Secretary of State to receive lethal excess property

from other agencies of the U.S. Government for the purpose of providing such property to foreign governments. A similar provision

has been contained in prior appropriations acts. Currently, this authority is limited to non-lethal excess property. This section also requires the Secretary to notify the Congress before obligating funds

to obtain excess lethal property under this section.

Sec. 205. Reconstruction Assistance Under International Disaster

Assistance Authority

This section amends section 491 of the Foreign Assistance Act to

conform the authority of this section to authority provided in appropriations acts over a number of years to allow funds under this

heading to be used for reconstruction assistance after natural or

man-made disasters.

Sec. 206. Funding Authorities for Assistance for the Independent

States of the Former Soviet Union

This section amends the Foreign Assistance Act to make permanent the authorities applicable to provision of assistance that are

contained in that Act. Appropriations acts since the inception of the

program for the independent states of the former Soviet Union

have continued these authorities.

Sec. 207. Waiver of Net Proceeds Resulting From Disposal of United

States Defense Articles Provided to a Foreign Country on a

Grant Basis

This section amends section 505(f) of the Foreign Assistance Act

to broaden the existing authority of the President to waive the requirement that net proceeds resulting from the disposal of defense

articles provided to a foreign country on a grant basis be paid to

the United States. Existing law limits the waiver authority to

items delivered before 1985.

Sec. 208. Transfer of Certain Obsolete or Surplus Defense Articles

in the War Reserve Stockpiles for Allies to Israel

This section provides the President authority to transfer certain

obsolete or surplus defense items to Israel, in exchange for concessions of equivalent value to be negotiated by the Secretary of Defense with the concurrence of the Secretary of State. This section

requires advance Congressional notification before any transfer is

made under this section.
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Sec. 209. Additions to United States War Reserve Stockpiles in

Israel for Fiscal Year 2004

This section extends through fiscal year 2004 the President’s authority to transfer excess items to the Department of Defense War

Reserve Stockpile in Israel.

Sec. 210. Restrictions on Economic Support Funds for Lebanon

This section amends section 1224 of the Foreign Relations Authorization Act, fiscal year 2003, to permit assistance to address

the needs of southern Lebanon. The Committee notes that such assistance will be provided to non-governmental organizations that

promote democracy and economic development. The Committee

specifically notes that, given scarce water resources and critical

water management issues in the region, water projects in southern

Lebanon can help defuse Lebanese–Israeli tensions in the region.

Sec. 211. Administration of Justice

This section amends section 534 of the Foreign Assistance Act to

provide for the continuation of the Administration of Justice program on a worldwide basis. The program’s sunset provision and

overall funding ceiling have been deleted. The amendments made

by this section conform the Administration of Justice authority to

the authority provided for a number of years in appropriations

acts.

Sec. 212. Demining Programs

Subsection (a) amends section 551 of the Foreign Assistance Act

to make it clear that, in accordance with previous interpretations

of the Peacekeeping program’s statutory authorities, the Peacekeeping program may include demining activities.

Subsection (b) continues and makes permanent an authority contained in prior year appropriations Acts to allow the Department

of State and USAID to dispose of demining equipment on a grant

basis in foreign countries.

Subsection (c) highlights the Committee’s concern regarding the

continuing problems posed to children by mines and unexploded

ordnance in Afghanistan and other affected areas. It authorizes

funds to be used to educate children as to the hazards posed by

mines and unexploded ordnance. The Committee is particularly

aware of the challenges that demining and ordnance disposal pose

for the nascent national government and ongoing operations in that

country. The Committee takes note of a new non-governmental organization, ‘‘No Strings,’’ which is proposing to use theatre and

puppetry to provide life-saving education about landmines to children in Afghanistan.

Sec. 213. Special Waiver Authority

This section amends section 614 of the Foreign Assistance Act by

updating authorities and funding limitations.

New subsection (a) provides that the authority of section 614

may be used to waive provisions of law that limit the President’s

ability to authorize assistance, sales, or other action (for example,

export licenses) under the authority of the Foreign Assistance Act,

the Arms Export Control Act, and any Act authorizing or appropriating foreign assistance funds without regard to the provisions
18

of law cited in subsection (b). The standards used to allow the provision of both economic and military assistance are the same as

current law. The provision also increases the annual country limitations.

New subsection (d) lists the provisions of law that may be

waived. In addition to provisions contained in foreign assistance

authorization and appropriations acts, provisions of law contained

in other legislation that limit the provision of assistance under

those acts may also be waived under the authority of this section.

The requirements for prior consultation with the appropriate

committees of the Congress and submission of a written policy justification before the President may exercise the authority contained

in section 614 remain unchanged.

Sec. 214. Prohibition of Assistance for Countries in Default

This section amends section 620(q) of the Foreign Assistance Act

to make two changes. First, it makes the restriction applicable only

to aid to governments. Second, it amends the period of default

(from 6 months to 12 months) that results in a cutoff of assistance

under the Foreign Assistance Act.

Sec. 215. Military Coups

This section amends the Foreign Assistance Act to prohibit assistance to a country if the duly elected head of government of such

country is deposed by decree or military coup. Similar restrictions

have been included in appropriations acts since 1986. Exempted

from this restriction is assistance to promote democratic elections,

and a presidential waiver would permit assistance upon a determination that such assistance is important to the national security

interest of the United States.

Sec. 216. Designation of Position for Which Appointee is Nominated

This section requires the President to designate the particular

position within the Agency for International Development for which

any individual is being nominated.

Sec. 217. Exceptions to Requirement for Congressional Notification

of Program Changes

This section amends section 634A(b) of the Foreign Assistance

Act to conform to provisions contained for a number of years in annual foreign assistance appropriations acts. New subsection (b)(3)

provides an exception to prior notification in the case of substantial

risk to human health or welfare, but continues the requirement to

notify no later than 3 days after the obligation of funds. New subsection (b)(4) contains a de minimis threshold for reprogramming

under the Arms Export Control Act that has been included for a

number of years in appropriations acts.

Sec. 218. Commitments for Expenditures of Funds

This section amends section 635(h) of the Foreign Assistance Act

to allow contracts or agreements which entail the committment or

expenditure of funds made available under the Foreign Assistance

Act to be extended at any time for not more than five years. Under

current law, this authority is limited only to certain accounts.
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Sec. 219. Alternative Dispute Resolution

The amendment to section 635(i) of the Foreign Assistance Act

expands the current arbitration and claims settlement authority for

investment guarantee operations to also cover claims arising from

other activities carried out under the Act, which could include

claims under contracts, grants, cooperative agreements, credit

agreements, personal services contracts, and other arrangements

and agreements. It also adds a specific authority for alternative

dispute resolution.

Sec. 220. Administrative Authorities

This section amends and updates certain administrative authorities contained in section 636 of the Foreign Assistance Act.

Section 636(a)(3) is amended to permit the hiring of personal

services contractors for work in the United States. The authority

already exists under the Act for hiring such contractors abroad.

Section 636(a)(5) is amended to allow the procurement of passenger motor vehicles without various restrictions in current law,

most of which are not possible to administer across agencies using

this authority.

Section 636(a)(10) is amended to delete the 10 year limitation on

leases, thereby providing the ability to obtain the most favorable

lease terms under long-term leases.

Section 636(c) is amended to strike the $6 million limitation on

the acquisition or construction of living and office space overseas

for U.S. Government personnel.

Section 636(d) is amended to strike the $2.5 million limitation on

the provision of assistance for schools for dependents of U.S. Government personnel.

Sec. 221. Assistance for Law Enforcement Forces

This section amends section 660 of the Foreign Assistance Act of

1961.

Paragraph (1) amends subsection (b)(6), consistent with current

law, to make it clear that the authority of this paragraph may be

used in cases where instability has occurred at the sub-national

level.

Paragraph (1) further amends subsection (b) to add exceptions to

the prohibition on assistance for law enforcement forces. New paragraph (8) permits the provision of assistance to combat corruption

consistent with the objectives of section 133 of the Foreign Assistance Act. New paragraph (9) is the same as current law but is included as a separate paragraph to make it clear that the authority

to provide human rights, rule of law, and other training is not limited to post-conflict situations. New paragraph (10) is an authority

related to assistance to combat trafficking in persons.

Paragraph (2) amends section 660 to provide the Secretary of

State with the authority to waive the limitations of this section on

a case-by-case basis if the Secretary determines that it is important

to the national interest to do so. The obligation of funds pursuant

to such a waiver is subject to prior notification of the appropriate

congressional committees under section 634A of the Foreign Assistance Act.
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Sec. 222. Special Debt Relief for the Poorest

This section amends the Foreign Assistance Act by adding a new

Part VI. This part authorizes the President to forgive certain debts

owed by the poorest countries to the United States. The exercise

of this authority is subject to, among other things, the prior appropriation of funds for this purpose and prior notification of the appropriate congressional committees in accordance with section

634A of the Foreign Assistance Act. The authority is very similar

to authority previously enacted in foreign assistance appropriations

acts.

Sec. 223. Congo Basin Forest Partnership

This section contains findings and expresses the Sense of the

Congress in support of the Congo Forest Basin Partnership, the

largest conservation effort currently undertaken by the U.S. government in Africa. It affirms U.S. support of the Congo Basin Forest Partnership because the forests and wildlife of the Congo Basin

are of global significance, because the forests are a major factor in

the social, economic and environmental health of Congo Basin

countries, and because of the impressive structure of cooperation

between governments, NGOs and the private sector operating in

the region. It further identifies the Congo Basin Forest Partnership

as an initiative that fully recognizes the integral and equal nature

of economic development, social development and environmental

protection in the quest for sustainable development.

Funds recommended for use in this section were requested by the

administration as part of a 3-year effort to capitalize on the strong

cooperation and momentum of state governments, international organizations and non-governmental organizations in protecting the

continent’s essential natural resources while also addressing other

challenging development issues in the region. The Committee expresses support for economic and conservation opportunities including improvement of forest management and sustainable forestbased livelihoods development such as employment through

ecotourism, wildlife law enforcement, reduced impact logging and

park management. The Committee specifically identifies as targets

those activities that are unsustainable and destabilizing to the region, such as illegal logging and illegal trade in wildlife.

Sec. 224. Landmine Clearance Programs

This section provides the Secretary of State authority to support

public-private partnerships for landmine clearance programs

through grant or cooperative agreement.

The Committee commends the State Department’s Political-Military bureau for its attention to this global problem through the Bureau’s Office of Mine Action Initiatives.

Sec. 225. Middle East Foundation

The Committee strongly supports the Middle East Partnership

Initiative announced by the Secretary of State in December 2002.

The Committee seeks to contribute to efforts to bring democratic

and economic reforms to the Middle East region and has authorized the Secretary of State to designate an appropriate private,

non-profit organization as the Middle East Foundation and to provide funding to the Foundation through the Middle East Partner-
21

ship Initiative. The Committee recommends an initial funding level

of an estimated $15 million for Fiscal Year 2004.

The purposes of this assistance are to support civil society, political participation, women’s rights, educational reform, human

rights, independent media, economic reform, the rule of law and

other democratic development in the Middle East through grants,

technical assistance, training and other measures. The Committee

favors the Foundation supporting democracy-related activities in

countries with struggling movements for reform and democracy, including Iran. The Secretary may also make a grant to an institution of higher education in the Middle East to create a Center for

Public Policy to permit scholars and professionals from the Middle

East and other countries, including the United States, to carry out

research, training programs and other activities to inform public

policy making in the Middle East and promote broad economic, social and political reforms. The Committee considers such activities

are entirely consistent with the ‘‘Arab Human Development Report

for 2002.’’ The Committee notes this section also provides for reporting, financial accountability and oversight measures of such a

Foundation.

The Committee expects to work closely with the Department of

State as such a Foundation establishes operations. The Committee

recognizes the positive role played by the Asia Foundation and

Eurasia Foundation in supporting civil society development in their

respective regions of operations and hopes that the Middle East

Foundation can play a similar role in the Middle East.

The Committee further expects that, prior to providing any funding to the Foundation, the administration will ensure that the

Foundation has in place a system for vetting potential grantees to

reduce the risk of funding activities that are contrary to the national interests of the United States. This section also provides for

reporting, financial accountability and oversight measures of such

a Foundation.

SUBTITLE B—ARMS EXPORT CONTROL ACT AMENDMENTS AND

RELATED PROVISIONS

Sec. 231. Thresholds for Advance Notice to Congress of Sales or Upgrades of Defense Articles, Design and Constructions Services,

and Major Defense Equipment

This section raises the minimum dollar thresholds at which sales

of certain defense articles, design and construction services, and

major defense articles (or upgrades of such sales) must be reported

to the Congress under section 36 of the Arms Export Control Act.

The Committee raised the level of notification thresholds from

$14 million to $50 million for major defense equipment, from $50

million to $100 million for defense articles and defense services,

and from $200 million to $350 million for design and construction.

This section also allows for notification of additional cases (i.e.,

ones below the new dollar thresholds) ‘‘if the President determines

it is appropriate.’’ The Committee understands that the executive

branch is prepared to provide the Committee informal notice of

planned arms transfers above existing dollar thresholds and to submit formal notification under section 36 of the Arms Export Control

Act for certain transfers if requested by the Chairman or ranking
22

member. The Committee expects that an exchange of letters will be

used to specify the State Department’s commitment in this regard

before this section is enacted.

Sec. 232. Clarification of Requirement for Advance Notice to Congress of Comprehensive Export Authorizations

This section requires the President to make certifications to the

Congress under section 36(c)(1) of the Arms Export Control Act before issuing comprehensive authorizations under section 126.14 of

the International Traffic in Arms Regulations (ITAR) for the export

of defense articles or defense services to an eligible foreign country

or foreign partner.

Sec. 233. Exception to Bilateral Agreement Requirement for Transfers of Defense Items Within Australia

This section provides an exception to the requirements on bilateral agreements for country exemptions from International Traffic

in Arms Regulations contained in section 38(j)(2)(A) of the Arms

Export Control Act with respect to transfers within Australia of

certain U.S.-origin defense items.

Sec. 234. Authority to Provide Cataloging Data and Services to

Non-NATO Countries

This section authorizes the President to provide cataloging data

and services to non-NATO countries on a reciprocal basis. Currently, authority exists only to provide such data and services to

NATO and to NATO-member governments.

Sec. 235. Freedom Support Act Permanent Waiver Authority

This section provides a permanent annual waiver for the requirements of section 502 of the Freedom Support Act (Public Law 102-

511). Section 1306 of the National Defense Authorization Act for

fiscal year 2003 (Public Law 107-314) provided authorization for an

annual waiver only for fiscal years 2003 through 2005. This permanent authority to invoke an annual waiver would ensure continuity

for program planning purposes.

Sec. 236. Extension of Pakistan Waivers

This section extends the authority contained in previous legislation (Public Law 107–57) to make inapplicable through fiscal year

2004 foreign assistance restrictions relating to coups and loan defaults with respect to Pakistan.

Sec. 237. Consolidation of Reports on Non-Proliferation in South

Asia

This section requires that the annual report on nonproliferation

in South Asia to be submitted by April 1, 2004, pursuant to section

620F(c) of the Foreign Assistance Act of 1961, include a description

of the efforts of the United States Government to achieve objectives

on nuclear and missile nonproliferation in the region, as described

in section 1601 of the Foreign Relations Authorization Act for Fiscal Year 2003, the progress made toward achieving such objectives,

and the likelihood that such objectives will be achieved by September 30, 2004. This avoids the need for a separate report on

those efforts, which was required in 2003.
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Sec. 238. Haiti Coast Guard

This section grants eligibility to the Government of Haiti for the

purchase of defense articles and services for the Haitian Coast

Guard under the Arms Export Control Act subject to existing notification requirements.

Sec. 239. Sense of Congress Relating to Bilateral Agreement on Exports of Defense Items to the United Kingdom

This section expresses the sense of the Congress that once a bilateral agreement with the United Kingdom for an exemption from

the International Traffic in Arms Regulations [ITAR] for certain

United States-origin defense items is finalized, the United States

should approve an appropriately-crafted exception to the requirements of section 38 (j) of the Arms Export Control Act.

Sec. 240. Marketing Information for Commercial Communication

Satellites

This section provides that under section 38 of the Arms Export

Control Act a license is not required for sharing marketing data for

the purposes of a potential sale of a commercial communications

satellite to a NATO-member country, Australia, New Zealand and

Japan. Under the definition of marketing data contained in the section, an export license would still be required for sensitive

encryption and source code data, detailed design data, engineering

analysis, or manufacturing know-how. The section further provides

that nothing in this section exempts commercial communications

satellites from any of the other licensing requirements under the

Arms Export Control Act.

TITLE III—RADIOLOGICAL TERRORISM THREAT

REDUCTION ACT

The Committee is concerned that orphaned, unused, surplus, or

other radioactive sources pose a major proliferation risk, and that

the use of such materials by terrorists in a radiological dispersion

attack could lead to catastrophic economic and social damage. The

Committee finds that the security of these materials should be a

priority in United States nonproliferation efforts, and that international cooperation will be critical to guarantee the success of

these efforts.

At a hearing held March 6, 2002, the Committee received testimony regarding the terrorist nuclear threat from: Dr. Richard A.

Meserve, then-Chairman of the Nuclear Regulatory Commission;

Dr. Donald D. Cobb, Associate Laboratory Director for Threat Reduction at the Los Alamos National Laboratory; Dr. Harry C.

Vantine, Division Leader for Counterterrorism and Incident Response at the Lawrence Livermore National Laboratory; Dr. Steven

E. Koonin, Provost of the California Institute of Technology and

chairman of the JASON group of scientific advisers to the Department of Defense; and Dr. Henry C. Kelly, President of the Federation of American Scientists. The witnesses warned that there was

a real possibility that terrorists could obtain radioactive material

and then disperse it with the intent to cause harm. Although few

people, if any, would die from a radiological attack, it could force
24

the evacuation and destruction of large numbers of buildings in

order to comply with federal decontamination regulations.

Radioactive sources must be kept in responsible hands; but that

is difficult because they are widely used in industry. Radioactive

sources are indispensable to modern medicine, where they are used

to treat cancer and to perform diagnostic tests. Some cancer treatments implant radioactive material within our bodies; other procedures use intense beams from large, highly radioactive sources.

Both the former Soviet Union and the United States also developed

power sources using intensely radioactive material for use in remote areas and in spacecraft.

Poorly guarded radioactive materials in the former Soviet Union

represent a large source of potential ingredients for radiological

dispersion devices. The United States works with the International

Atomic Energy Agency (IAEA) to ensure the physical protection

and accountability of significant radioactive sources world-wide,

but additional targeted programs are needed to secure dangerous

radiological sources both in the states of the former Soviet Union

and elsewhere.

This title authorizes the Secretary of State to propose that the

IAEA conclude agreements with up to 8 countries, under which

each country would provide temporary secure storage for orphaned,

unused, surplus, or other radioactive material sources; to provide

assistance for an IAEA program to promote the discovery, inventory, and recovery of radioactive sources in member nations of the

IAEA; to provide substitute non-nuclear power sources for radioisotope thermal power units operated by the Russian Federation and

other independent states in the former Soviet Union; and to assist

foreign countries, or to propose that the IAEA assist foreign countries, in the development of appropriate national response plans

and the training of first responders for a possible radiological

event.

The Committee has made funding available for each of these initiatives from the funds authorized in this title for fiscal year 2004

to be appropriated to the State Department account for Nonproliferation, Anti-terrorism, Demining, and Related Programs

(NADR). All amounts authorized to be appropriated by this title

are authorized to remain available until expended.

The Committee is also concerned with the threat posed to U.S.

missions abroad by terrorist radiological attacks. The Secretary is

therefore required to submit a report within 180 days after the enactment of this title (and on an annual basis thereafter) detailing

the preparations made at U.S. diplomatic missions abroad to detect

and mitigate such an attack, listing improvements for radiological

safety and consequence management at those missions, and providing a rank-ordered list of the missions where such improvements are the most critical. As part of this report the Secretary is

required to submit a budget request to carry out these improvements.

Sec. 304. International Storage Facilities for Radioactive Sources

Section 304 authorizes the Secretary of State to propose that the

International Atomic Energy Agency conclude agreements with up

to 8 countries under which each country would provide temporary

secure storage for orphaned, unused, surplus, or other radioactive
25

sources (other than special nuclear material, nuclear fuel, or spent

nuclear fuel). The agreements must be consistent with the IAEA

Code of Conduct on the Safety and Security of Radioactive Sources,

and shall address the need for storage of such radioactive sources

in countries or regions of the world where convenient access to secure storage of such radioactive sources does not exist.

The Secretary is authorized to make voluntary contributions to

the IAEA for use by the Department of Nuclear Safety of the IAEA

to fund the United States share of the costs of activities associated

with or under the above agreements, and in fiscal year 2004 that

share may be 100 percent of the costs of such activities in that fiscal year. The Secretary is also authorized to provide the IAEA and

other countries with technical assistance to carry out activities

under the above agreements in a manner that meets the standards

of the IAEA Code of Conduct on the Safety and Security of Radioactive Sources. To carry out this section, $4,000,000 is authorized

for fiscal year 2004.

The Committee intends that the Secretary make full use, as appropriate, of his authorities, in the Economy Act and especially in

section 632(b) of the Foreign Assistance Act of 1961 (22 U.S.C.

2392(b)), to use the services of other departments and agencies in

implementing this section. Such intent applies equally to sections

305-308 of this title. Subsection (d) of this section provides that the

National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.)

shall not apply with respect to any temporary secure storage facility constructed outside the United States under an agreement

under subsection (a). Rather, the construction and operation of

such a facility shall be governed by any applicable environmental

laws of the country in which the facility is constructed.

Sec. 305. Discovery, Inventory, and Recovery of Radioactive Sources

Section 305 authorizes the Secretary of State to provide assistance, including through voluntary contributions to the IAEA, to

support a program of the Division of Radiation and Waste Safety

of the Department of Nuclear Safety of the IAEA to promote the

discovery, inventory, and recovery of radioactive sources in member

nations of the IAEA. The Secretary is also authorized to provide

the IAEA and other countries with technical assistance to carry out

the program. To carry out this section, $4,000,000 is authorized for

fiscal year 2004.

Sec. 306. Radioisotope Thermal Generator Power Units in the Independent States of the Former Soviet Union

Section 306 authorizes the Secretary of State to assist the Government of the Russian Federation to substitute solar (or other

non-nuclear) power sources for radioisotope thermal power units

operated by the Russian Federation and other independent states

of the former Soviet Union in applications such as lighthouses in

the Arctic, remote weather stations, and for providing electricity in

remote locations. Any power unit utilized as a substitute power

unit under this section shall, to the maximum extent practicable,

be based upon tested technologies that have operated for at least

one full year in the environment where the substitute power unit

will be used.
26

Subsection (b) of this section requires that the Secretary of State

consult with the Secretary of Energy to ensure that substitute

power sources provided under this section are for facilities from

which the radioisotope thermal generator (RTG) power units have

been or are being removed. The Department of Energy has primary

responsibility for assisting the Government of the Russian Federation to locate, remove and securely store the RTG power units, and

the Government of Norway has a program to replace RTG power

units in the Kola Peninsula region. Close consultation with the Department of Energy will help ensure that the State Department

does not provide non-RTG power units for facilities that are not

ready for the replacement units or that are receiving replacement

power units from other sources. To carry out this section,

$5,000,000 is authorized for fiscal year 2004. Not more than 20 percent of those funds may be used to replace dangerous radioisotope

thermal power facilities in countries other than the independent

states of the former Soviet Union that are similar to the facilities

described above.

Sec. 307. Foreign First Responders

Section 307 authorizes the Secretary of State to assist foreign

countries, or to propose that the IAEA assist foreign countries, in

the development of appropriate national response plans and the

training of first responders to: detect, identify, and characterize radioactive material; understand the hazards posed by radioactive

contamination and the risks encountered at various dose rates;

enter contaminated areas safely and speedily; and evacuate persons within a contaminated area. Subsection (b) requires the Secretary of State to take into account the findings of the threat assessment report required by section 308 and the location of any

storage facilities for radioactive sources under section 304. To carry

out this section, $2,000,000 is authorized for fiscal year 2004.

Sec. 308. Threat Assessment Reports

Section 308 requires the Secretary of State to submit to the appropriate congressional committees a report detailing the preparations made at United States diplomatic missions abroad to detect

and mitigate a radiological attack on United States missions and

other United States facilities under the control of the Secretary.

This report is to include a rank-ordered list of the Secretary’s priorities for improving radiological security and consequence management at United States missions, a rank-ordered list of the missions

where such improvement is most important, and a proposed budget

to carry out those improvements. Each report shall be submitted in

unclassified form, but may include a classified annex. The first report required by this section shall be submitted not later than 180

days after the date of the enactment of this Act. Subsequent reports under this section shall be submitted with the annual budget

justification materials submitted by the Secretary of State to Congress for each fiscal year commencing with fiscal year 2006.

TITLE IV—GLOBAL PATHOGEN SURVEILLANCE

In January 2001, the National Intelligence Council released a

National Intelligence Estimate entitled, The Biological Warfare

Threat. The report not only points to the growing biological warfare
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capabilities of state and non-state actors but, more importantly,

highlights the similar patterns and symptoms of a deliberately initiated disease outbreak and a naturally occurring outbreak. Once

an outbreak is detected and begins to spread, it is very difficult to

distinguish between a deliberate versus a natural disease outbreak.

Furthermore, both are potentially devastating to human, animal,

and plant life, as well as economically costly. Epidemiologists and

public health experts rely on similar tools to help prevent, detect,

and contain both intentional and naturally occurring disease outbreaks.

The Committee believes that the threat of bioterrorism poses significant challenges not only for the United States, but for the entire

world. It is difficult to protect our nation’s health alone in an age

of unprecedented air travel and international trade, as infectious

pathogens are transported across borders each day. The recent

global outbreak of severe acute respiratory syndrome, or SARS, is

an unfortunate reminder of this vulnerability.

Infectious disease outbreaks are transnational threats and the

defense of our homeland is not an isolated activity. Rather it requires a comprehensive strategy, including a critical international

component. Whether intentional or natural, infectious diseases do

not recognize the boundaries set by national borders.

The Committee held a hearing regarding the threat of bioterrorism and the spread of infectious diseases on September 5, 2001.

Witnesses included former Senator Sam Nunn, Dr. Donald A. Henderson of Johns Hopkins University (later a scientific advisor to the

White House and the Department of Health and Human Services),

and Dr. David L. Heymann, Executive Director for Communicable

Diseases at the World Health Organization. At a March 18, 2002,

hearing on the chemical and biological weapons threat, Dr. Alan P.

Zelicoff, Senior Scientist at Sandia National Laboratories, testified

on the role of syndromic surveillance in bioterrorism prevention.

Developing nations represent one of the weak links in a comprehensive global surveillance and monitoring network. Unfortunately, naturally occurring disease outbreaks are most likely to

occur in these areas where poor sanitary conditions, poverty, and

a weak medical infrastructure combine to offer ideal breeding

grounds for pathogens. In addition, some developing countries border rogue states or states that offer sanctuaries for international

terrorist groups, where there is documented interest in biological

agents.

The Committee has sought to identify and enhance the capability

of the international community to detect, identify, and contain infectious disease outbreaks, whether the cause of those outbreaks is

intentional or natural in origin. The primary authority for implementation of the bill’s provisions is vested in the Department of

State, but the Committee expects that the Department of Health

and Human Services will also play a critical role, including consultation to the greatest extent possible.

Sec. 404. Priority for Certain Countries

Section 404 requires that priority in allocating assistance under

the provisions of this bill be given to those eligible developing countries that permit personnel from the World Health Organization

(WHO) and the Centers for Disease Control and Prevention (CDC)
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to investigate infectious disease outbreaks on their territory, provide early notification of such outbreaks, and share pathogen surveillance data with appropriate U.S. governmental entities and

international health organizations.

Sec. 405. Restriction

Section 405 restricts access that foreign nationals participating

in programs authorized under this Act may gain to select agents

that may be used as, or in, a biological weapon, except in a supervised and controlled setting. The Committee does not believe that

such a restriction will constrain foreign nationals from fully participating in various training and educational programs under this

Act.

Sec. 406. Fellowship Program

Section 406 authorizes the Secretary of State to award fellowships to eligible nationals of developing countries to pursue a master of public health degree or advanced public health training in

epidemiology. The Committee believes that carefully chosen programs of this sort should be encouraged as they not only impart

technical skills utilizing state-of-the-art technology, but also help

cultivate the management and organizational skills of future leaders for developing country public health programs. The Secretary

of State shall require the recipient to enter into an agreement

under which the recipient, upon completing said education or training, will return to the recipient’s country of nationality or last habitual residence (so long as it is an eligible developing country) and

complete at least four years of employment in a public health position in the government or a nongovernmental, not-for-profit entity

in that country. If the recipient is unable to meet these requirements, the recipient will be required to reimburse the U.S. government for the value of the assistance provided.

Subsection (e) allows for the participation of United States citizens, on a case-by-case basis, if the Secretary determines that it is

in the national interest of the United States to do so. Such participants would be required, upon completion of education or training,

to complete at least five years of employment in a public health position in an eligible developing country or an international health

organization.

Sec. 407. In-Country Training in Laboratory Techniques and Syndrome Surveillance

Section 407 supports short-term training courses, outside the

United States, in laboratory techniques for laboratory technicians

and public health officials. Such training courses offer the opportunity for public health personnel to train in their indigenous environment, utilizing the available technology. Subsection 407(a) complements the assistance authorized in section 408 for the purchase

and maintenance of public health laboratory equipment. Subsection

407(b) supports training in syndrome surveillance techniques. Syndrome surveillance systems provide the means for early detection

and recognition, limit infection and mortality rates, and help to

more efficiently focus limited public health resources.
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Sec. 408. Assistance for the Purchase and Maintenance of Public

Health Laboratory Equipment; and Sec. 409. Assistance for Improved Communication of Public Health Information

Sections 408 and 409 authorize the President to provide assistance, subject to the availability of appropriations, to eligible developing countries to purchase and maintain: (1) public health laboratory equipment necessary for the collection, analysis, and identification of pathogens which may cause disease outbreaks or be used

as biological weapons; and (2) communications equipment and information technology, along with supporting equipment, necessary

to effectively collect, analyze, and transmit public health information. The equipment should be appropriate for ready use in the intended geographical area and compatible with general standards

established by the WHO and, as appropriate, the CDC to ensure

interoperability with regional and international networks. Recipient countries must provide the resources, infrastructure, and other

assets required to house, support, maintain, secure, and maximize

use of this equipment and appropriate technical personnel.

The Committee believes that equipment purchased with assistance provided under these sections should be in compliance with

the Export Administration Act of 1979 and that no funds should be

made available for the purchase from a foreign country of equipment that, if made in the United States, would be subject to the

Arms Export Control Act.

The Committee favors standardizing the reporting of public

health information between and among developing countries and

international health organizations. Standardized reporting requirements will enable information to be more easily transmitted and

understood. Thus, the President is authorized under subsection (e)

of section 409 to provide assistance for this purpose.

Sec. 410. Assignment of Public Health Personnel to United States

Missions and International Organizations

Section 410 authorizes the heads of executive branch departments and agencies to assign public health personnel to U.S. diplomatic missions and international health organizations when requested. These details, intended to be flexible in nature, should be

for the purpose of enhancing disease and pathogen surveillance efforts in developing countries. The Secretary of State must concur

with any such detail.

Sec. 411. Expansion of Certain United States Government Laboratories Abroad

Section 411 authorizes the expansion of the overseas laboratories

and other related facilities of the Centers for Disease Control and

the Department of Defense, as appropriate, to further the goals of

global pathogen surveillance and monitoring. This expansion applies to both numbers of personnel and the scope of operations.

Overseas CDC and DoD facilities, working with host governments,

play a crucial role in enhancing the capability of developing countries to monitor disease outbreaks and suspected biological weapons attacks.
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Sec. 412. Assistance for Regional Health networks and Expansion

of Foreign Epidemiology Training Programs

Section 412 authorizes the President to provide assistance for the

purposes of enhancing the surveillance and reporting capabilities of

the World Health Organization and existing regional networks. The

President is also authorized to provide funding for the development

of new regional health networks, as a means of continuing to expand the reach of a global surveillance network. Additionally, subsection (b) authorizes the Secretary of Health and Human Services

to establish new country or regional Foreign Epidemiology Training

Programs in eligible developing countries.

Sec. 413. Authorization of Appropriations

Section 413 authorizes appropriations for carrying out provisions

of this title for Fiscal Year 2004. The Committee has made funding

available for this title from the funds authorized to be appropriated

to the State Department account for Nonproliferation, Anti-Terrorism, Demining, and Related Programs (NADR). All amounts authorized to be appropriated by this title are authorized to remain

available until expended. The section authorizes $35 million in

total. Of this amount, $25 million is authorized to carry out sections 406, 407, 408 and 409; $500,000 to carry out section 410; $2.5

million to carry out section 411; and $7 million to carry out section

412. All of these authorization levels are subject to the availability

of appropriations.

The Committee recognizes that the level of required assistance

for global pathogen surveillance will be modest in comparison to

other foreign assistance efforts. Targeted U.S. assistance can leverage other international assistance and, more importantly, establish

benchmarks for public health programs in developing countries to

strive for in sustaining and expanding pathogen surveillance efforts. Global surveillance does not command large-scale investments nor does it require high-tech equipment. The Committee

hopes that U.S. allies and partners will contribute a proportionate

share in funding these types of efforts to develop a comprehensive

global surveillance network. The absence of authorized funding beyond FY 2004 does not indicate the need for a re-authorization of

these programs.

TITLE V—MISCELLANEOUS PROVISIONS

SUBTITLE A—ELIMINATION AND MODIFICATION OF CERTAIN

REPORTING REQUIREMENTS

Sec. 501. Annual Report on Territorial Integrity

This section repeals an annual report from the 1994 Foreign Operations, Export Financing, and Related Programs Act on steps

taken by the governments of Eurasia concerning violations of the

territorial integrity or national sovereignty of other Eurasian states

‘‘such as those violations included in Principle Six of the Helsinki

Final Act.’’This report is no longer necessary because the countries

of Eurasia (designated in the 1994 Act as ‘‘New Independent

States’’) have maintained their sovereignty and territorial integrity

for over a decade.
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Sec. 502. Annual Reports on Activities in Colombia

This section permits the Secretary to satisfy the reporting requirements of section 694 of the fiscal year 2003 Foreign Relations

Authorization Act by consolidating the required information with

the report required by section 489 of the Foreign Assistance Act.

Sec. 503. Annual Report on Foreign Military Training

This amendment changes the date upon which the report is due

to the Congress from January 31 to March 1.

Sec. 504. Report on Human Rights in Haiti

This section combines reports that derive from subsections 616

(c) (2), (3) and (4) of the Commerce, Justice and State Appropriations Act Fiscal Year 1999, as amended, concerning the status of

the Government of Haiti’s investigations and prosecution of certain

extra judicial and political murders, the list of individuals implicated in those murders, and list of aliens denied visas as a result

of the legislation. The two reports had been submitted on the same

date but in two separate packages, so the timing of the receipt of

this information will not be affected.

SUBTITLE B—OTHER MATTERS

Sec. 511. Certain Claims for Expropriation by the Government of

Nicaragua

This section authorizes the Secretary of State to exclude from

consideration for the purposes of foreign assistance restrictions related to property expropriation certain U.S. citizen property claims

against the Government of Nicaragua not filed within 120 days of

a deadline to be set by the Secretary of State.

Sec. 512. Amendments to the Arms Control and Disarmament Act

This section adds the term ‘‘formal commitments’’ to the elements for which the Verification and Compliance Bureau of the Department of State shall provide compliance analysis (arms control,

nonproliferation, and disarmament agreements) under the Arms

Control and Disarmament Act. To facilitate faster submission of

the annual report on objectives and negotiations, it separates that

report from the annual report on compliance, which is required to

be prepared in coordination with the Director of Central Intelligence. This section also allows the annual report on Chemical

Weapons Convention compliance, required by condition 10 (C) of

the resolution of advice and consent to U.S. ratification of that Convention, to be incorporated in the annual compliance report required by section 403 of the Arms Control and Disarmament Act.

Sec. 513. Support for Sierra Leone

This section contains findings and a sense of Congress that there

have been significant amounts expended in stabilizing Sierra Leone

through the United Nations Mission in Sierra Leone (UNAMSIL)

and Operation Focus Relief, and that this investment should be secured through appropriate continued support for the country. It

also requires a one-time report of the U.S. Agency for International

Development on the feasibility of opening a USAID mission in Sierra Leone and recommends that funding may be made available
32

to support education, poverty-reduction and anti-corruption efforts

in fiscal year 2004.

Sec. 514. Support for Independent Media in Ethiopia

This section recognizes the need for an independent media in

Ethiopia and recommends the provision of necessary sums to

strengthen the capacity of journalists and increase their access to

printing facilities. The Committee finds it essential to maintain

principles of democratic participation in all states, regardless of

their level of support in the global war on terrorism.

Sec. 515. Support for Somalia

This section contains a sense of Congress that the United States

has a national interest in supporting stability in Somalia by working to strengthen state capacity, engaging in small-scale human development initiatives, and curtailing opportunities for terrorists

and international criminals within Somalia’s borders. It also calls

for a one-time report by the Secretary of State to outline a multiyear strategy to increase access to education and health care services, to support effective regulation of Somali remittance companies

and to assist in the rehabilitation of the Somali livestock sector.

The Committee continues to be concerned about existing and potential terrorist activity and influence in Somalia, and supports a

policy of engagement with relatively stable and responsible actors

including Somaliland, in order to provide alternative influences and

opportunities to the Somali people.

Sec. 516. Support for Central African States

This section contains specific findings drawn from the State Department’s Human Rights Report for 2002, and reaffirms U.S. policy supporting efforts aimed at accounting for grave human rights

abuses and crimes against humanity, encouraging reconciliation

and preventing such crimes in the future. It also requires a report

from the Secretary of State within 180 days after enactment on the

actions taken pursuant to the above policy. This section also authorizes that up to $12 million may be made available for fiscal

year 2004 to support justice and reconciliation mechanisms in the

Democratic Republic of the Congo, Rwanda, Burundi, and Uganda.

The Committee is deeply disturbed by ongoing reports of gross

human rights abuses in Ituri province and the eastern portion of

the Democratic Republic of the Congo, and believes that regional

instability will not be resolved until the climate of impunity for

such abuses is changed. The Committee considers that the mounting frequency of reports of atrocities perpetrated by local and proxy

militias, and the politicization and arming of the population, warrant responsive actions in order to avert further atrocities.

Sec. 517. Africa Contingency Operations Training and Assistance

Program

This section authorizes the Africa Contingency Operations Training and Assistance Program (ACOTA), codifies the criteria for eligible countries, and expresses a sense of the Congress on local consultations prior to ACOTA implementation and monitoring of posttraining performance and conduct of military units trained. It pro-
33

vides that the full amount requested for fiscal year 2004 may be

made available for ACOTA training.

The Committee finds that several years of experience with

ACOTA and its predecessor, the Africa Crisis Response Initiative

(ACRI), have confirmed their value.

Sec. 518. Conditions on the Provision of Certain Funds to Indonesia

This section conditions the release of any funds available for Indonesia in fiscal year 2004 under the Foreign Military Financing

program or the International Military Education and Training program (with the exception of funds under the expanded IMET program) on the receipt of a certification submitted by the President

that the Government of Indonesia and the Indonesian Armed

Forces are taking effective measures to conduct an investigation of

the attack on United States citizens in Indonesia on August 31,

2002 and to criminally prosecute the individuals responsible for the

attack.

Sec. 519. Assistance to Combat HIV/AIDS in Certain Countries of

the Caribbean

This section’s purpose is to include certain nations of the Caribbean Region where HIV/AIDS prevalence is second only to sub-Saharan Africa, on the list of countries eligible for assistance from the

Combat HIV/AIDS Globally Fund.

Sec. 520. Repeal of Obsolete Assistance Authority

This section repeals various authorities that have been included

in the Foreign Assistance Act over the last twenty years in response to one-time crises to provide for the relief and rehabilitation

of various peoples around the world.

Sec. 521. Technical Corrections

This section makes technical corrections to several foreign assistance laws.

V. REGULATORY IMPACT STATEMENT

In accordance with rule XXVI, paragraph 11(b) of the Standing

Rules of the Senate, the Committee has concluded that section 240

of the bill will slightly lessen the burden for producers of commercial communications satellites.

VI. COST ESTIMATE

Rule XXVI, paragraph 11(a) of the Standing Rules of the Senate

requires that Committee reports on bills or joint resolutions contain a cost estimate for such legislation. The provisions of Rule

XXVI paragraph 11(a) were not complied with because of time constraints. The Chairman will publish the Congressional Budget Office estimate of the bill in the Congressional Record when it is provided.

VII. CHANGES IN EXISTING LAW

It is the opinion of the Committee that it is necessary to dispense

with the requirements of Rule 26.12 of the Standing Rules of the

Senate in order to expedite the business of the Senate.
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