88–360 PDF

Calendar No. 215

108TH CONGRESS REPORT

1st Session " ! SENATE 108–106

FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED

PROGRAMS APPROPRIATION BILL, 2004

JULY 17, 2003.—Ordered to be printed

Mr. MCCONNELL, from the Committee on Appropriations,

submitted the following

REPORT

[To accompany S. 1426]

The Committee on Appropriations reports the bill (S. 1426) making appropriations for Foreign Operations and related programs for

the fiscal year ending September 30, 2004, and for other purposes,

reports favorably thereon and recommends that the bill do pass.

Amounts in new budget authority

Fiscal year 2003 appropriations .............................. $23,718,563,000

Fiscal year 2004 budget estimate ........................... 18,932,588,000

Amount of bill as reported to Senate ...................... 18,136,859,000

Bill as recommended to Senate compared to:

2003 appropriations .......................................... ¥5,581,704,000

Budget estimate ................................................ ¥795,729,000
(2)

CONTENTS

Page

Summary of Total Budget Authority in the Bill ................................................... 4

Introduction .............................................................................................................. 4

Title I—Export and Investment Assistance:

Export-Import Bank of the United States ...................................................... 5

Overseas Private Investment Corporation ..................................................... 5

Trade and Development Agency ...................................................................... 6

Title II—Bilateral Economic Assistance:

Bilateral Assistance .......................................................................................... 7

Child Survival and Health Programs Fund ................................................... 7

Development Assistance .................................................................................. 12

International Disaster Assistance ................................................................... 35

Famine Fund ..................................................................................................... 36

Transition Initiatives ....................................................................................... 36

Development Credit Authority ........................................................................ 36

Payment to the Foreign Service Retirement and Disability Fund ............... 36

Operating Expenses of the United States Agency for International Development ........................................................................................................... 36

Capital Investment Fund ................................................................................. 37

Operating Expenses of the Office of Inspector General ................................ 37

Other Bilateral Economic Assistance:

Economic Support Fund ............................................................................ 37

Global AIDS Initiative .............................................................................. 42

Assistance for Eastern Europe and the Baltic States ............................ 42

Assistance for the Independent States of the Former Soviet Union ..... 43

Independent Agencies:

Inter-American Foundation ...................................................................... 47

African Development Foundation ............................................................ 48

Peace Corps ................................................................................................ 48

Department of State:

International Narcotics Control and Law Enforcement ......................... 48

Andean Counterdrug Initiative ................................................................ 49

Migration and Refugee Assistance ........................................................... 51

Emergency Refugee and Migration Assistance Fund ............................. 52

Nonproliferation, Antiterrorism, Demining, and Related Programs ..... 52

Department of the Treasury:

International Affairs Technical Training ................................................ 54

Debt Restructing ....................................................................................... 54

Title III—Millennium Challenge Assistance:

Funds Appropriated to the President: Millenium Challenge Assistance ..... 56

Title IV—Military Assistance:

International Military Education and Training ............................................. 57

Foreign Military Financing .............................................................................. 57

Peacekeeping Operations ................................................................................. 59

Title V—Multilateral Economic Assistance:

International Financial Institutions Summary .............................................. 60

International Bank for Reconstruction and Development:

Global Environment Facility .................................................................... 61

International Development Association ................................................... 61

Multilateral Investment Guarantee Agency ................................................... 61

Inter-American Development Bank:

Inter-American Investment Corporation ................................................. 61

Multilateral Investment Fund .................................................................. 61

Asian Development Bank: Asian Development Fund .................................... 61

African Development Bank: African Development Fund .............................. 61
Page

3

Title V—Multilateral Economic Assistance—Continued

European Bank for Reconstruction and Development:

International Fund for Agricultural Development ................................. 62

International Organizations and Programs ............................................ 62

Title VI—General Provisions .................................................................................. 63

Compliance With Paragraph 7, Rule XVI of the Standing Rules of the Senate .......................................................................................................................... 66

Compliance With Paragraph 7(c), Rule XXVI of the Standing Rules of the

Senate ................................................................................................................... 66

Compliance With Paragraph 12, Rule XXVI of the Standing Rules of the

Senate ................................................................................................................... 67

Budget Impact Statement ....................................................................................... 68
(4)

SUMMARY TABLE: AMOUNTS IN NEW BUDGET AUTHORITY

Item Budget request Committee recommendation

Committee recommendation compared with budget estimate increase (∂)

or decrease (¥)

Export Assistance ....................................................................... ¥$103,020,000 ¥$115,220,000 ¥$12,200,000

Bilateral Economic Assistance .................................................. 12,565,580,000 11,877,929,000 ¥687,651,000

Military Assistance ..................................................................... 4,600,600,000 4,560,600,000 ¥40,000,000

Multilateral Assistance .............................................................. 1,869,428,000 1,813,550,000 ¥55,878,000

INTRODUCTION

In fiscal year 2003, the Committee appropriated $23,718,563,000

for foreign operations and related programs, including supplemental appropriations. This year, the Committee has provided

$18,136,859,000, of which $18,093,000,000 is for discretionary

spending and $43,859,000 is for mandatory spending.
(5)

TITLE I

EXPORT AND INVESTMENT ASSISTANCE

EXPORT-IMPORT BANK OF THE UNITED STATES

INSPECTOR GENERAL

Appropriations, 2003 ............................................................................. ...........................

Budget estimate, 2004 ........................................................................... $1,200,000

Committee recommendation ................................................................. 1,000,000

ADMINISTRATIVE EXPENSES

Appropriations, 2003 ............................................................................. $67,856,000

Budget estimate, 2004 ........................................................................... 75,394,668

Committee recommendation ................................................................. 74,395,000

As a result of a new methodology to measure international credit

risk that reduced the average subsidy cost, the administration did

not request, and the Committee did not provide, a subsidy appropriation for the Export-Import Bank for fiscal year 2004. The Committee understands that the Export Import Bank will have sufficient carryover from fiscal year 2003 to increase (under the new

methodology) total credit authorizations by $1,800,000,000 to

$14,600,000,000 in fiscal year 2004.

The Committee provides $1,000,000 for the Inspector General of

the Export-Import Bank.

The Committee provides $74,395,000 for administrative expenses, which is $6,539,000 above the fiscal year 2003 level.

OVERSEAS PRIVATE INVESTMENT CORPORATION

SUBSIDY APPROPRIATION

DIRECT LOANS

Appropriations, 2003 ............................................................................. $23,844,000

Budget estimate, 2004 ........................................................................... 24,000,000

Committee recommendation ................................................................. 24,000,000

The Committee provides a subsidy appropriation for the Overseas Private Investment Corporation [OPIC] for direct and guaranteed loan credit programs of $24,000,000, which is equal to the

budget request and $156,000 above the fiscal year 2003 level.

ADMINISTRATIVE EXPENSES

Appropriations, 2003 ............................................................................. $39,626,000

Budget estimate, 2004 ........................................................................... 42,385,000

Committee recommendation ................................................................. 41,385,000

The Committee provides $41,385,000 for administrative expenses. This level is $1,759,000 above the fiscal year 2003 level.
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TRADE AND DEVELOPMENT AGENCY

Appropriations, 2003 ............................................................................. $46,706,000

Budget estimate, 2004 ........................................................................... 60,000,000

Committee recommendation ................................................................. 50,000,000

The Committee provides $50,000,000 for the Trade and Development Agency [TDA], which is $3,294,000 above the fiscal year 2003

level.

The Committee appreciates the nexus between aviation safety

and trade, and recommends that TDA increase support for programs and activities such as technical and on-site workshops and

interactive employee training systems that help prepare countries

for International Civil Aviation Organization [ICAO] audits and

that correct safety and security deficiencies.
(7)

TITLE II

BILATERAL ECONOMIC ASSISTANCE

FUNDS APPROPRIATED TO THE PRESIDENT

UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT

Appropriations, 2003 ............................................................................. $4,239,154,000

Emergency supplemental ...................................................................... 258,300,000

Budget estimate, 2004 ........................................................................... 4,617,759,000

Committee recommendation ................................................................. 4,739,959,000

The amounts listed in the above table for fiscal year 2003 appropriations, the fiscal year 2004 budget estimate and the Committee

recommendation, include funds appropriated or requested under

child survival and health programs, development assistance,

USAID operating expenses, USAID Inspector General operating expenses, mandatory retirement expenses, international disaster assistance, famine fund, transition initiatives, and credit programs.

CHILD SURVIVAL AND HEALTH PROGRAMS FUND

Appropriations, 2003 ............................................................................. $1,824,563,000

Emergency supplemental ...................................................................... 90,000,000

Budget estimate, 2004 ........................................................................... 1,495,000,000

Committee recommendation ................................................................. 1,435,500,000

The Committee provides $1,435,500,000 for the Child Survival

and Health Programs Fund [CSHPF] of which $345,000,000 is for

child survival and maternal health. This amount is $23,000,000

above the fiscal year 2003 level. The Committee notes that funding

for the Global Fund to Fight AIDS, Tuberculosis and Malaria, and

UNICEF, have been moved out of CSHPF which explains the apparent discrepancy between the text and table above.

The CSHPF supports programs and activities to reduce child

mortality and morbidity, combat infectious diseases including HIV/

AIDS, and address a wide range of other public health problems

around the world. The Committee reiterates its strong support for

a comprehensive approach to global health, with an emphasis on

building local capacity in developing countries to conduct effective

surveillance and deliver basic health services.

HIV/AIDS

The Committee commends the President for his commitment to

combat HIV/AIDS, and provides a total of $1,357,000,000 for HIV/

AIDS programs, which is $10,000,000 above the fiscal year 2004

budget request. The Committee notes that this funding level will

allow the President to meet his commitment to provide a total of

$15,000,000,000 for HIV/AIDS programs and activities over the

next 5 years.
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The Committee is keenly aware that $3,000,000,000 is authorized to be appropriated for each of the fiscal years 2004 through

2008 in Public Law 108–25. However, the Committee has been informed that the administration intends to more gradually ramp up

HIV/AIDS spending in all accounts from $2,040,000,000 in fiscal

year 2004 to $2,540,000,000 in fiscal year 2005, $3,090,000,000 in

fiscal year 2006, $3,690,000,000 in fiscal year 2007, and

$3,890,000,000 in fiscal year 2008.

The Committee has long recognized the national security threats

posed by unchecked HIV/AIDS infection rates, and the absolute

devastation caused to countries, communities, and families by this

pandemic. The Committee appreciates that the budget request for

HIV/AIDS in fiscal year 2004 alone exceeds the total amount appropriated in fiscal years 1993 through 2001.

The $1,357,000,000 provided for HIV/AIDS programs and related

activities in this Act is drawn from the following accounts:

$500,000,000 from the Child Survival and Health Programs Fund;

an additional $105,000,000 from the CSHPF for tuberculosis and

malaria programs related to combating HIV/AIDS; $700,000,000

from the newly established Global AIDS Initiative [GAI];

$50,000,000 from Economic Support Fund [ESF], Assistance for

Eastern Europe and the Baltic States [SEED], and Assistance for

the Independent States of the Former Soviet Union [FSU]; and,

$2,000,000 from Foreign Military Financing.

The Committee provides up to $250,000,000 for a U.S. contribution to the Global Fund to Fight AIDS, Tuberculosis, and Malaria

from the GAI. The Committee encourages other donors to the Global Fund to bear their fair share and to fulfill their pledges in order

to maximize the contribution by the United States. The Committee

also provides $150,000,000 for the International Mother and Child

HIV Prevention Initiative under this account.

The Committee recognizes USAID’s efforts to provide a steady

and adequate supply of condoms to combat HIV/AIDS, and expects

that USAID and the Global HIV/AIDS Coordinator will devote adequate financial resources and utilize mechanisms, such as the commodity fund established last year at USAID, to ensure the availability of such commodities in the future.

Media Programs.—The Committee believes that local media can

play an effective role in combating HIV/AIDS. USAID has initiated

a media program in Kenya and Nigeria to increase knowledge

about the pandemic through accurate and unbiased media coverage

of the causes and appropriate public responses to HIV/AIDS. The

Committee recommends that this program be expanded to other

countries and that USAID provide at least an additional $2,000,000

in fiscal year 2004.

Microbicides.—The Committee is aware that women comprise

half of the HIV infections in the world, and that the typical woman

who is infected has only one partner, her husband. Microbicides

that are under development could play a major role in protecting

women from HIV. USAID’s role in the development of microbicides

is especially important in the preclinical and clinical evaluation of

potential new products. The Committee has included $22,000,000

for USAID for microbicide research and development.
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UNAIDS.—The Committee supports the work of UNAIDS, which

plays a key coordination role in the global effort to design national

AIDS plans, expand access to HIV drugs, set standards for vaccine

trials, and collect data that is critical in combating the HIV/AIDS

pandemic. In light of the significant increases in funding for HIV/

AIDS programs, the Committee urges the administration to increase its contribution to UNAIDS.

Safe Blood.—The Committee encourages USAID to support the

efforts of Safe Blood for Africa, which assists African nations

through training and technical assistance, to develop systems to

ensure that blood supplies are screened for HIV/AIDS and other

communicable diseases.

Lott Carey International.—The Committee again recognizes Lott

Carey International’s [LCI] work to establish programs to help

mitigate the devastation caused by HIV/AIDS in Africa and the

Carribean, including education, building health care infrastructure,

and caring for orphans, widows, and other family members affected

by HIV/AIDS. The Committee expects USAID to consider and fund

proposals from LCI in a timely manner.

United Families International Stay Alive Program [UFISAP].—

The Committee urges USAID to consider supporting proposals from

UFISAP to combat HIV/AIDS in Africa.

Needle Safety.—The Committee recognizes that the use of contaminated needles in developing countries contributes to the spread

of HIV/AIDS, and supports funding for programs and activities that

address this problem.

OTHER INFECTIOUS DISEASES

The Committee provides $185,000,000 for programs to combat

other infectious diseases, to strengthen disease surveillance, and to

reduce anti-microbial resistance in developing countries. This

amount is $29,500,000 above the fiscal year 2003 level.

Tuberculosis.—The Committee recommends not less than

$80,000,000 to combat tuberculosis [TB], including at least

$70,000,000 from the Child Survival and Health Programs Fund

and at least $10,000,000 from the ESF, SEED, and FSU accounts.

The Committee expects funds for TB from the ESF, SEED, and

FSU accounts to be obligated and disbursed rapidly. The Committee supports DOTS TB programs and other multilateral efforts,

including the Global Fund to Combat TB. The Committee also recommends USAID consider funding for the Global Tuberculosis

Drug Facility.

Malaria.—The Committee recommends not less than $85,000,000

from the Child Survival and Health Programs Fund for programs

to combat malaria, a debilitating disease that afflicts an estimated

500 million people each year, of whom one million die, mostly African children. The Committee is aware of Medicines for Malaria

Venture, a public-private partnership to develop new anti-malaria

drugs, which are urgently needed. The Committee recommends

that USAID provide direct support to this initiative. The Committee expects USAID to allocate approximately 10 percent of its

funding for malaria programs to vaccine research and development,

including $3,000,000 for the Malaria Vaccine Initiative.
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IMMUNIZATIONS

The Committee is aware that at least 3 million lives could be

saved each year if every child received immunizations. Last year,

the Senate recommended up to $60,000,000 for The Vaccine Fund

in support of the Global Alliance for Vaccines and Immunization.

Since The Vaccine Fund’s inception 3 years ago, nearly

$1,000,000,000 has been committed for immunization programs in

64 countries. The Committee supports continued funding for this

program, and recommends $60,000,000 for The Vaccine Fund in fiscal year 2004.

The Committee recommends up to $1,000,000 to support the

Ukraine Childhood Immunization Information System pilot program in the Kyiv Oblast proposed by the Altarum Institute. The

Committee expects the Government of Ukraine to contribute to the

pilot program and follow on activities.

IODINE DEFICIENCY DISORDERS

Iodine deficiency disorder [IDD] is the leading preventable cause

of mental retardation in children. Private funds, raised by Kiwanis

International and implemented by UNICEF, are preventing the

mental retardation of millions of children through programs to iodize salt. The Committee recommends a total of $3,500,000 for the

Kiwanis/UNICEF IDD program, including $2,000,000 from the

Child Survival and Health Programs Fund and $1,500,000 from the

SEED and FSU accounts.

VITAMIN A AND OTHER MICRONUTRIENTS

Each year, more than 2.8 million children under 5 years of age

die in the developing world from causes related to Vitamin A deficiency. The Committee recommends that at least $30,000,000 be

provided for the overall USAID micronutrient program, of which at

least $20,000,000 should be for programs relating to Vitamin A deficiency.

POLIO ERADICATION

The Committee again recommends $30,000,000 for the multilateral effort to eradicate polio, an extraordinary public-private effort

which is in its final years of completion.

BLIND CHILDREN

Worldwide, one child goes blind every minute. According to the

World Health Organization, 1.5 million children are blind and 7

million suffer from low vision. The Committee recognizes the work

of Helen Keller Worldwide and other organizations to assist blind

children and children with low vision, and again recommends

$1,500,000 for such programs in fiscal year 2004.

DISPLACED CHILDREN AND ORPHANS FUND

The Committee again recommends $12,000,000 for the Displaced

Children and Orphans Fund, which is in addition to other funding

for HIV/AIDS orphans. The Committee has provided authority to

use up to $32,500 in program funds for displaced and orphaned
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children and victims of war to enable the USAID office responsible

for the design and management of these programs to monitor and

oversee their implementation. USAID is also encouraged to use

other operating expense funds, as necessary, to further the effectiveness of the oversight of these programs.

FAMILY PLANNING/REPRODUCTIVE HEALTH

The Committee provides a total of $445,000,000 for family planning/reproductive health programs, of which $375,500,000 is made

available under the Child Survival and Health Programs Fund.

The Committee is aware that unchecked population growth is a

major cause of environmental degradation, and expects USAID to

develop performance goals and indicators which promote cross-sectoral collaboration on community-based, population-health-environment programs, and to consult with the Committee regarding these

goals and indicators.

CHILD SAFETY

The Committee supports the Asia Injury Prevention Foundation’s

‘‘Helmets for Kids’’ program and recommends USAID provide up to

$500,000 to support the expansion of this program in Bangladesh,

Sri Lanka, Cambodia and Nepal.

The Committee is aware of the work of the Global Peace Initiative (GPI) to assist orphans and widows and encourage USAID to

consider proposals from GPI.

MATERNAL HEALTH

The Committee is aware that pregnancy-related deaths exceed

600,000 annually, most of which are preventable. The Committee

believes that far more should be done to address this urgent need,

and recommends at least $75,000,000 for maternal health activities

and that additional funding be made available specifically to reduce

pregnancy-related deaths.

HEALTH CARE INFRASTRUCTURE

The Committee is aware of the dire situation of the JFK Memorial Hospital in Monrovia, Liberia, and urges USAID and the State

Department to consult with the Committee about options for sustaining the operations of this facility.

PROGRAMS FOR PEOPLE WITH DISABILITIES

The Committee reiterates its strong support for programs that

address the needs of people suffering from physical and mental disabilities in developing countries.

The Committee includes a provision to ensure that the needs of

persons with disabilities are fully taken into account by USAID in

the design and implementation of programs, projects, and activities

in Afghanistan and Iraq. The Committee also expects USAID to develop, within 180 days after enactment of this Act, standards for

access for people with disabilities for construction projects funded

by USAID. The Committee recommends that, in the interim,

USAID should consider immediately applying the standards contained in ‘‘Accessibility for the Disabled, A Design Manual for a
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Barrier Free Environment,’’ prepared by the Urban Management

Department of the Lebanese Company for the Development and

Reconstruction of Beirut Central District.

The Committee commends Mental Disability Rights International’s work in Kosovo, and encourages USAID to support its

programs and activities.

The Committee provides $10,000,000 to continue support for

wheelchairs for needy persons in developing countries. Of this

amount, the Committee directs $5,000,000 be provided to Wheelchairs for the World, and expects these funds to be matched by private donations on a dollar-for-dollar basis. The Committee encourages the remaining funds to be maximized by matching, in-kind

contributions from recipients.

The Committee notes the work of the Center for Mind-Body Medicine [CMBM] to train mental health and other professionals to

treat conflict-related trauma in the Balkans. The Committee requests USAID and the State Department to consider proposals to

expand CMBM programs to other regions.

MEDICAL EQUIPMENT

The Committee supports the efforts of organizations and individuals to improve healthcare facilities in developing countries by providing medical equipment, medical supplies, hospital linens, and

medical textbooks. The Committee recommends that USAID provide $500,000 to the International Medical Equipment Collaborative for these purposes.

DEVELOPMENT ASSISTANCE

Appropriations, 2003 ............................................................................. $1,379,972,000

Budget estimate, 2004 ........................................................................... 1,345,000,000

Committee recommendation ................................................................. 1,423,000,000

The Development Assistance account consists of a wide range of

poverty-reduction and long-term development activities including

democracy and the rule of law, free market development, agriculture and rural development, urban programs, environment and

energy, basic education, and micro-credit.

WOMEN IN DEVELOPMENT

The Committee recommends $15,000,000 in fiscal year 2004 for

USAID’s Office of Women in Development [WID], and expects the

Administrator of USAID to strengthen the WID Office. The Office

continues to play a key role in integrating gender perspectives into

USAID’s programs and policies, and providing technical support,

research and implementation of initiatives focused on women’s economic status and legal rights, and girls’ education.

The Committee supports the mission of Women’s Campaign

International [WCI], which works to enhance the status of women

through media, leadership, business, organizational, and publicservice training in developing countries. The Committee recommends at least $2,500,000 for WCI in fiscal year 2004.
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CHILDREN’S BASIC EDUCATION

Educating children in developing countries is fundamental to

long term development. The Committee believes that USAID

should significantly broaden its support for these activities, and

provides $220,000,000 for children’s basic education in fiscal year

2004. The Committee expects USAID to emphasize programs that

expand access and quality of education for girls, enhance community and parental participation in schools, improve teacher training, and build local management capacity.

AMERICAN SCHOOLS AND HOSPITALS ABROAD

The Committee continues to recognize the important contributions made to U.S. foreign policy by institutions funded by the

American Schools and Hospitals Abroad [ASHA] program, and provides that not less than $20,000,000 should be made available to

support these institutions in fiscal year 2004. The Committee, once

again, expects USAID to allocate sufficient sums to administer the

ASHA program from funds provided for Operating Expenses, so it

will not be necessary to expend any program funds for administrative purposes.

Although the Committee understands that ASHA funds are

available for a variety of purposes, such as construction and equipment, libraries, computer technology, curriculum and staff support,

and related expenses, the Committee reaffirms its intention that

this assistance is not to be presumed to offer permanent budget

support to ASHA recipients. The Committee strongly encourages

ASHA to give priority to organizations which demonstrate a commitment to private fundraising to match government support.

The Committee continues to be impressed with the contributions

to United States interests made by several institutions and believes

that they warrant further ASHA support, including Lebanese

American University, International College; The Johns Hopkins

University’s Centers in Nanjing, China and Bologna, Italy; the Tel

Aviv University: American Council; the Center for American Studies at Fudan University, Shanghai; the Hadassah Medical Organization; EARTH University’s Center for Sustainability and Biodiversity in Cost Rica; the American University of Beirut; the American

University of Cairo; and the Feinberg Graduate School of the

Weizmann Institute of Science.

VICTIMS OF TORTURE

The Committee recommends that USAID provide up to

$11,000,000 in fiscal year 2004 for programs and activities to assist

victims of torture, including for centers for victims of torture that

provide services consistent with the goals of the Torture Victims

Relief Reauthorization Act of 1999.

PATRICK LEAHY WAR VICTIMS FUND

The Committee continues to strongly support the Leahy War Victims Fund, which, since 1989, has provided essential orthopedic

and related medical, surgical, and rehabilitation assistance for persons who are disabled as a result of civil strife or armed conflict.

In addition to enabling amputees and other people with disabilities
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to regain mobility, the Committee supports USAID’s efforts to increase their accessibility to mainstream educational, recreational

and economic opportunities. The Committee expects USAID to provide $12,000,000 for this program in fiscal year 2004.

The Committee continues to encourage the Fund to increase its

support for initiatives in conflict-affected countries that will lead to

appropriate disability laws and policies, and improvements in and

the expansion of appropriate services and programs that are needed by people with conflict-related physical disabilities.

COMMUNITY-BASED POLICE ASSISTANCE

The Committee expects USAID to comply with the annual reporting requirement contained in section 582(b) of the fiscal year 2003

Foreign Operations, Export Financing, and Related Programs bill.

SPORTS PROGRAMS

The Committee is aware of the intrinsic value of sports in enhancing child health and development and building communities.

Olympic Aid-Right to Play is an athlete-driven organization using

sport and recreation to achieve these goals with programs in numerous countries around the world. The Committee recommends

USAID and the State Department provide up to $5,000,000 to support Olympic Aid-Right to Play’s programs.

The Committee also recognizes Special Olympics’ efforts to expand its international programs on behalf of the estimated 170 million people worldwide who suffer from mental retardation, and

urges USAID to support these programs.

COOPERATIVE ASSOCIATION FOR STATES FOR SCHOLARSHIPS

The Committee reiterates its support for the work of the Cooperative Association for States for Scholarships and expects USAID to

continue funding this program.

URBAN DEVELOPMENT

The Committee reiterates its strong support for the work of the

Institute for Liberty and Democracy [ILD], which has successfully

implemented a number of economic growth and poverty reduction

programs in developing countries. The Committee recommends that

up to $6,000,000 be made available to support ILD programs and

activities.

The Committee again recognizes the work of the International

Real Property Foundation [IRPF] to create private real estate markets and promote property rights abroad. The Committee provides

that up to $3,000,000 should be made available to support expansion of IRPF’s activities to Latin America, Asia, and Africa.

FAITH BASED ORGANIZATIONS

The Committee commends USAID for its work with faith based

organizations, and encourages an expansion of efforts with groups

ranging from the Alaska Interfaith Council in the Russian Far

East to St. Patrick’s Church and School in Haiti.
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COMMERCIAL DEVELOPMENT PROGRAMS

The Committee strongly supports microenterprise development

programs for the poor, especially women, and recommends that

USAID provide at least $180,000,000 for these activities. The Committee expects USAID to preserve the viability of leading microfinance NGO networks, including faith-based networks, by providing substantial funding to these entities so they may increase

the number of people they serve. The majority of microenterprise

development resources should be used to support the direct provision of services to poor microentrepreneurs through these networks. Funding for administrative, procurement, research and

other support activities not directly related to the delivery and

management of services should be kept to a minimum.

The Committee supports the development, in conjunction with

micro-credit practitioners, of poverty measurement methods as a

means of verifying that at least half these resources are targeted

toward the world’s poorest people. The Committee requests that

USAID report to the Committee no later than 90 days after the enactment of this Act on the status of the development of these methods. The Committee recognizes the positive impact that microcredit

programs have on the lives of women around the world.

The Committee strongly supports the volunteer activities of the

International Executive Service Corps [IESC], and believes that

USAID continues to underutilize IESC’s capacity to promote economic growth by assisting small and medium sized companies. The

Committee believes that aggressive use of volunteer organizations

such as IESC produces positive results in development programs

abroad, and shares the administration’s support for greater volunteerism in America. The Committee expects USAID to provide

not less than $1,500,000 to IESC.

The Committee recognizes the important mission of the Office of

Private and Voluntary Cooperation [PVC], including its role as the

Secretariat for the U.S. Advisory Committee on Voluntary Foreign

Aid. The Committee recommends USAID to consider a substantial

increase in funding for the PVC Office, and suggests up to

$10,000,000 for programs that address the root causes of famine.

The Committee is aware of the efforts of the World Council of

Credit Unions to further develop credit union systems in South Africa and Mexico in order to promote free-market principles and increase the ability of poor people to access credit and other banking

services. The Committee recommends up to $2,000,000 for this initiative.

The Committee provides $1,000,000 for the U.S. Telecommunications Training Institute [USTTI]. USTTI is a nonprofit joint venture between the public and private sectors dedicated to providing

tuition free communications and broadcast training to professionals

from around the world.

AGRICULTURE DEVELOPMENT PROGRAMS

The Committee supports USAID’s renewed emphasis on agriculture, as it has long believed that agricultural development is

critical to combating poverty. The Committee provides that

$40,000,000 should be made available for plant biotechnology pro-
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grams, with an emphasis on research projects to improve food security and nutrition in Africa and Asia.

The Committee believes that sustainable agricultural development is a key factor in reducing poverty and alleviating food shortages, as well as promoting economic growth and political stability

in developing countries. The Committee strongly supports USAID’s

investments in agriculture programs, and encourages a central role

for these programs in USAID’s future economic development and

disaster relief strategies. The Committee encourages increased

funding for agricultural development activities.

The Committee continues to believe that dairy development is an

important component of U.S. foreign assistance programs and recommends that USAID increase funding above the current level.

INTERNATIONAL COFFEE CRISIS

The Committee continues to be concerned with the impact of the

international coffee crisis on the livelihoods of poor coffee farmers,

as well as on United States counter-narcotics and foreign assistance efforts. In fiscal year 2003, Congress appropriated $500,000

for a contribution to the International Coffee Organization [ICO] as

one way to help address this problem.

While pleased that the State Department appears to be making

a careful decision concerning ICO membership, the Committee recognizes that this is only one aspect of finding a solution to the coffee crisis. The Committee is disappointed that little progress has

been made in formulating a comprehensive, multilateral strategy to

address this issue—as called for in S. Res. 368 and H. Res. 604,

passed during the 107th Congress. The Committee, therefore, has

included a provision that requires the Secretary of State, in consultation with the Administrator of USAID and the Secretary of

the Treasury, to report to Congress on progress in formulating such

a strategy.

The Committee also believes that finding alternative sources of

income for coffee farmers in Vietnam, some of whom only recoup

40 percent of their costs, is key to a solution to this crisis and urges

USAID to immediately increase resources to support these types of

programs.

FERTILIZER DEVELOPMENT

The Committee continues to support the work of the International Fertilizer Development Center [IFDC] and provides that

not less than $2,300,000 should be made available for its core

grant. The Committee also recommends an additional $1,700,000 to

support the research and development activities of IFDC.

COLLABORATIVE RESEARCH SUPPORT PROGRAMS

The Committee continues its strong support for the Collaborative

Research Support Programs [CRSPs], and recommends that the

CRSPs be considered for funding for a broad range of developmentrelated activities.
17

ENVIRONMENT PROGRAMS

The Committee has consolidated biodiversity, energy and natural

resource management activities under a single heading entitled

‘‘Environment Programs.’’ The Committee intends to provide sufficient resources to enable the United States to be at the forefront

of these critical and complex global issues. To that end, the Committee provides a total of $485,000,000 for environment programs,

of which not less than $325,000,000 is to be funded within the Development Assistance account. A total of $165,000,000 of Development Assistance funds is for biodiversity conservation. A total of

$185,000,000 of funds in the Act is for energy conservation, energy

efficiency, and clean energy programs.

Biodiversity.—The Committee continues to believe that USAID

should give higher priority to biodiversity conservation. The Congo

Basin Forest Partnership [CBFP], a comprehensive, multi-year, regional strategy to protect biodiversity in central Africa, is an example of what can be achieved by bringing together governments, timber companies, and NGOs to protect biodiversity. The Committee

urges USAID to support proposals of the Jane Goodall Institute to

expand its work with African communities to protect forests and

wildlife.

The Committee commends the work of the Global Environment

Facility [GEF], the World Conservation Union [IUCN] other NGOs

and local governments to protect the Amazon Basin region, which

is home to the largest and among the most biologically diverse forests in the world as well as many culturally unique indigenous

groups. However, the Committee notes that an estimated 7,000

square miles of Amazon forest are being cut down each year, and

believes that efforts to protect this area should be coordinated and

broadened into a comprehensive, multi-year, regional action plan

similar in approach to the CBFP. The Secretary of State, after consultation with the Administrator of USAID and other appropriate

departments and agencies, the GEF, the IUCN and other NGOs

with relevant expertise in biodiversity conservation and with the

governments of Brazil, Peru, Bolivia, Colombia, Venezuela, Guyana, Suriname, and French Guiana, is to submit to the Committees

on Appropriations, within 180 days after enactment of this Act,

such an action plan for biodiversity conservation in the Amazon

Basin. The Committee provides $10,000,000 for implementation of

the plan in fiscal year 2004. The Committee notes the effective

work of the Amazon Conservation Team [ACT] in strengthening

the capacity of indigenous groups, local environmental organizations and law enforcement agencies in the Brazilian Amazon to

protect the biodiversity of indigenous reserves, and provides

$1,500,000 to support its work. The Committee intends that total

assistance for Brazil will be $34,233,000, including the amount requested in the Act for Brazil in fiscal year 2004 plus the additional

assistance through ACT.

The Committee notes that human impact is the primary cause of

environmental degradation and that unchecked population growth

and poverty are key contributors to rapid biodiversity loss. The

Committee continues to believe that integrated approaches to

health, family planning, and environmental conservation are nec-
18

essary to address the needs of communities where biodiversity and

endangered species are threatened. The Committee supports the efforts of USAID’s Office of Population to support family planning in

these areas, and expects USAID to invest other global health (including HIV/AIDS), environment and sustainable agriculture funds

in the appropriate components of integrated population-health-environment programs.

Energy.—The Committee continues to strongly support renewable energy, energy efficiency, and clean energy programs, and provides $185,000,000 for these activities. The Committee expects

these funds to be used to assist developing countries to measure,

monitor, report, verify, and reduce greenhouse gases and related

activities. The Committee is concerned that the report on the administration’s climate change programs, required in section 555(b)

of Public Law 108–7 to be submitted ‘‘not later than 45 days after

the date on which the President’s fiscal year 2004 budget request

is submitted to Congress,’’ is long overdue. The Committee expects

the report to be submitted promptly. Like last year, the Committee

requires a report containing this same information for fiscal year

2004.

The Committee recommends $15,000,000 for USAID’s Office of

Energy and Information Technology.

The Committee recommends up to $2,000,000 to support publicprivate partnerships utilizing American technology to promote

small and medium hydropower in developing countries. These

funds should be made available to USAID’s Office of Energy and

Information Technology and USAID’s Office of Energy Efficiency

and Renewable Energy.

The Committee is aware of the Solar Electric Light Fund [SELF],

which provides solar power technology to remote communities in

Africa, Asia, and South America where other energy technologies

may be unavailable or impractical. These low-cost, low-maintenance, non-polluting photovoltaic panels generate electricity for

lighting, water pumps, health clinics, and internet access. The

Committee urges USAID to support SELF’s work.

PARKS IN PERIL

The Committee continues to support the Parks in Peril program,

which matches USAID funds with private contributions to support

conservation of imperiled ecosystems in Latin America and the

Caribbean.

BIRDS OF PREY

Although best known for its efforts to recover the Peregrine Falcon, The Peregrine Fund continues to build a record of conserving

birds of prey worldwide. A significant undertaking in the pursuit

of preservation is the establishment of The Peregrine Fund’s

Neotropical Raptor Center in Panama. From this location, The Peregrine Fund would conduct all of its work in the neo-tropics. Like

last year, the Committee recommends $500,000 to support this

goal, which the Committee understands will be matched by private

contributions.
19

INTERNATIONAL CONSERVATION PROGRAMS

The Committee supports international conservation programs

that preserve endangered species and maintain their natural habitats. The Committee recommends that USAID consider funding

conservation proposals and programs in Malaysia, Indonesia, Namibia, Trinidad, and Brazil.

The Committee remains concerned with the destruction of orangutan habitat in Indonesia, and expects USAID to provide at least

$2,500,000 for continued support through nongovernmental organizations, including the Orangutan Foundation and others, for activities to save the orangutan from extinction. The Committee expects

these funds to be used to work with local communities to protect

orangutan habitat in both Borneo and Sumatra, including, if appropriate, to support law enforcement activities, and requests to be

consulted prior to the obligation of these funds.

WATER CONSERVATION

The Committee is aware that many parts of the world do not

have access to reliable sources of drinking water, forcing people to

spend large amounts of time in search of clean water to meet their

most basic human needs. For a small amount of funding and basic

equipment, a local well can be drilled. The Committee has provided

$100,000,000 for these efforts, and expects USAID to report no

later than 90 days after enactment of this Act on funding and implementation of its water projects, including the number and location of wells drilled, and the cost per well.

The Committee continues to support the efforts of International

Project WET. The Committee recommends that USAID consider

providing $500,000 to support International Project WET’s efforts

to expand its research, development, and implementation capabilities.

The Committee is aware of the work of Water Missions International [WMI], a faith-based engineering nonprofit organization

that provides safe and sustainable water systems for developing

countries and disaster areas. The Committee recommends that

USAID provide $1,500,000 to WMI’s water supply project for hospitals in Honduras.

The Committee supports the Red Sea Marine Peace Park Cooperative Program in the Gulf of Aqaba, a joint undertaking by Jordan,

Israel, and the United States to conduct research and monitoring

of the physical, chemical, and biological oceanography of the northern Gulf of Aqaba and coral reef environments. The Committee

urges USAID to continue funding this important program.

UNIVERSITY PROGRAMS

The Committee has, once again, received a large number of requests to fund specific activities at or through American institutions of higher education. The Committee strongly supports activities that advance international development and U.S. foreign policy

goals. The Committee has reviewed the concepts proposed for funding, and recommends that USAID and/or the Department of State

(as appropriate for the proposed project) actively consider proposals

submitted by the following organizations.
20

Unless a proposal demonstrates a unique, innovative, or proprietary capability, or demonstrates special considerations that justify

limited or non-competitive treatment, the Committee expects that

competitive procedures will be applied with regard to the proposals

on the list that follows. The Committee also expects USAID to give

priority to proposals that have technical merit, realistic budgets,

and achievable objectives.

No later than 60 days after the submission of the report required

by section 653(a) of the Foreign Assistance Act, USAID should submit a report to the Committee on the status of each activity identified below. Such a report should include: (1) the status of the funding proposal by the organization associated with each activity; (2)

the degree to which the proposal is consistent with and would advance international development and U.S. foreign policy goals for

the country or region in which the activity would take place; (3) the

degree to which matching or other funds would be provided by the

organization to complement the Federal contribution; (4) to the extent known at the time, any decision by USAID or the Department

of State on funding the activity, including the funding level; and

(5) any other relevant information deemed important by USAID or

the Department of State. The Committee also expects to receive a

second report on the status of these proposals no later than July

1, 2004.

The Committee notes that USAID has not yet put in place satisfactory procedures for responding to proposals submitted by universities. The Committee continues to receive complaints from Members of Congress and universities that USAID is not devoting sufficient time and attention to these proposals. Too often, the Committee has heard that USAID Washington has referred a university

to a USAID field mission, which in turn has referred the university

back to Washington. Months of delay and frustration have ultimately caused these universities to seek assistance from the Committee in obtaining consideration of their proposals. The Committee

expects USAID to immediately rectify this situation. Otherwise, the

Committee will modify its approach for handling university proposals in fiscal year 2005.

With the foregoing in mind, the Committee recommends the following proposals for USAID’s active consideration:

Africa-America Institute.—A program by the African Technology

for Education and Workforce Development Initiative [AFTECH] to

establish a distance learning program between U.S. universities

and African universities.

Chestnut Hill College.—A collaborative distance learning project

on free markets and democracy with the Sterling Educational Institutes and the International Center for Education and Research Distance Learning Center in Kiev, Ukraine.

Dartmouth College.—A joint proposal with the American International Health Alliance to continue a primary medical care development project in Kosovo that focuses on family practice and preventative health care training.

Eastern Michigan University.—A proposal to establish a center

for Middle East Studies and Research.
21

Grambling University.—A program to provide independent policy, research, and leadership training for domestic and international students, community leaders, and government officials.

Harvard University.—A proposal to develop future community

leaders, promote democracy and economic self-sufficiency, and gender equality in Afghanistan through the Afghan Women’s Leadership Training Initiative.

Historically Black Colleges.—A proposal to support the efforts of

these institutions to develop a virtual university consortium and

establish an Institute for Emerging Democracies.

Idaho State University.—A proposal to study the sociological, political and economic forces in the Pacific region in order to deter

terrorism.

Kansas State University.—A proposal for the Cereals Comparative Genomics Initiative to use genomics technologies to develop

grain production.

Langston University.—A proposal for a collaborative partnership

with Oklahoma University and WorldSpace, Incorporated, to design

and deliver HIV/AIDS prevention and education courses and learning materials to Nigeria’s school system.

La Roche College.—A proposal to expand programs to educate

young people from conflict, post-conflict, and developing regions of

the world.

Louisiana State University.—A proposal to expand trade and

commerce through a commercial law program with several Latin

American countries.

Louisiana State University.—A proposal to provide independent

media training to local governmental officials from Central and

Eastern Europe.

Louisiana State University.—A proposal to develop aquiculture

resources with the University of Namibia.

Norwich University.—A joint proposal of Norwich University and

Hibernia College, Dublin, to establish an online program in criminology and policing, public administration, and international security.

Oregon State University.—A proposal to establish the Universities Partnership for Transboundary Waters, a consortium aimed

at managing conflicts over water issues.

South Dakota State University.—A proposal to enhance research,

exchanges and education with Russian, Chinese, and Central Asian

governments and non-governmental organizations on agricultural

development.

Temple University.—A proposal to expand judicial training programs in the People’s Republic of China.

Tulane University.—A collaborative partnership with Xavier University to prevent and treat HIV/AIDS in the security forces of Economic Community of West African States [ECOWAS] member

countries.

University of Alaska.—A program with Alaska Pacific University

and the North Slope Borough and the Northwest Arctic Borough to

provide training and technical assistance to strengthen Chukotka’s

economy, develop market driven systems and improve social conditions, particularly for indigenous people in the region.
22

University of Arkansas Medical School.—A collaborative effort

with the Volgograd City Health Department, Volgograd Medical

Academy, and other public-private partners in the community to

enhance various health care delivery systems in the region.

University of Kentucky.—A program relating to health education

in Romania.

University of Kentucky.—A proposal for coal mine safety programs in the former Soviet Union.

University of Louisville.—A project relating to drinking water

systems management and maintenance in the Republic of Georgia.

University of Louisville.—A collaborative program with the University of Alabama-Birmingham, the Medical University of South

Carolina, and Clemson University for research on plant materials

in the Caribbean and Philippines.

University of Louisville.—A program to work with impoverished

communities in South Africa on economic reform and public health.

University of Miami.—A proposal for the Cuba Transition

Project.

University of Montana.—A proposal for a demonstration rule of

law and legal training project in Kyrgyzstan.

University of Nebraska.—A proposal by the Medical Center to

provide internet-based education and training for health professionals in developing countries.

University of Nebraska, Omaha.—A proposal to provide vocational-education training programs in Afghanistan through the

Community-Based, Vocational-Education Project.

University of Notre Dame.—A proposal by the Kroc Institute for

International Peace Studies to promote institution building in Muslim societies.

University of Northern Iowa.—A proposal concerning the Global

Health Corps program, which trains university students to conduct

community health programs in under-served areas in developing

countries.

University of Northern Iowa.—A proposal for the Russo-American

Institute to deepen cultural understanding and promote professional collaboration through exchange programs with Russian universities.

University of Northern Iowa.—A collaborative project to promote

physical activity and proper nutrition among youth in underserved

communities in Africa and Latin America through the Fitness Diplomats Program.

University of Rhode Island.—A collaborative project with Brown

University and The George Washington University to foster democratic, participatory, and accountable governance in Liberia

through the Liberian Peace-Building and Civic Accountability

Project.

University of South Alabama.—A proposal to enhance the Birth

Defects Monitoring Program in Ukraine, which will allow additional monitoring of environmentally linked birth defects.

University of Wisconsin—Platteville.—A proposal to form a partnership with Middle East Technical University in Ankara, Turkey

to create an engineering education program.
23

University of Wisconsin—Stevens Point.—A proposal to enhance

environmental and sustainable development programs in Latin

America.

Vermont Law School.—A proposal to establish centers for environmental law education and advocacy in Russia, based on an existing partnership with Petrozavodsk State University in Karelia.

Vermont Law School.—A proposal to strengthen China’s legal

system by improving legal education, particularly in the area of environmental law, through expanding a partnership between

Vermont Law School and Sun Yat-sen University, involving exchanges, training of Chinese law faculty, and the creation of the

first environmental law clinic in China.

Western Kentucky University.—A proposal for the continued funding of an international journalist training program.

Western Kentucky University.—A project to develop and promote

safe coal use practices and karst water resources in China, in order

to protect vulnerable children.

COUNTRY ISSUES

AFGHANISTAN

The Committee provides a total of $600,000,000 for assistance for

Afghanistan in this Act, which is $49,450,000 above the budget request. While this falls short of the levels authorized in the Afghanistan Freedom Support Act of 2002 (Public Law 107–327), the Committee is unable to make additional contributions without making

deep cuts in other important international assistance programs.

The Committee notes that $365,000,000 for assistance for Afghanistan was included in the fiscal year 2003 emergency supplemental, which included $100,000,000 for the Kabul-Kandahar road

and $170,000,000 to train, equip, and support the Afghan National

Army.

The Committee commends the efforts of those individuals involved in the reconstruction of Afghanistan, and remains concerned

with the tenuous security situation that stems from external forces

based in Pakistan and internal challenges from local commanders

and governors disloyal to President Karzai’s government. These security threats imperil humanitarian aid workers and USAID contractors, and undermine progress on large infrastructure projects,

demining, and other activities important to that country’s development. The Committee encourages all U.S. Government departments and agencies to coordinate efforts, including with the United

Nations and other allies, to provide adequate security for the Afghan people and those working to improve their lives. Continued

insecurity benefits only those internal and external forces who seek

to erode the authority of President Karzai.

The Committee supports the use of fiscal year 2004 funds to continue training for the Afghan National Army and a national police

force, provide for the welfare of the Afghan people, combat narcotics production and trafficking, and establish democratic and representative institutions. The Committee counsels Afghan leaders to

carefully assess preparations and funding commitments for anticipated elections in 2004, and to weigh the implications to the country’s development if less than credible polls are held.
24

The Committee remains concerned with the situation of Afghan

women, who suffered extreme hardships under the Taliban and

continue to face major obstacles in protecting their rights and participating in the economic and political life of the country. The

Committee believes that the Afghan Ministry of Women’s Affairs

has a key role to play in addressing these issues, and expects

USAID to support its activities and to provide technical and other

assistance to the Ministry to improve its capacity and effectiveness.

The Committee also believes that women-led Afghan NGOs play an

indispensable role in community development, and expects USAID

to provide technical and other assistance to improve the capacity

of these organizations and to support their activities.

The Committee also strongly supports the Afghan Human Rights

Commission and the Judicial Reform Commission. The Human

Rights Commission has a vital role to play in safeguarding the

basic rights and liberties of all Afghan citizens, through public education, reporting, and advocacy. The Committee particularly recognizes the need for the protection of women’s rights. The Committee

recommends that funds be made available for infrastructure for the

Human Rights Commission’s regional offices and for radio transmission equipment.

As in the fiscal year 2002 Supplemental and the fiscal year 2003

Foreign Operations Act, the Committee again provides that funds

made available for relief and reconstruction in Afghanistan shall be

used for assistance for Afghan communities and families that suffer

losses as a result of the military operations. The Committee appreciates the assistance of the United States military in Afghanistan

in helping to identify Afghan communities where American ordnance mistakenly targeted innocent civilians. The Committee intends that USAID and the Department of State, in coordination

with the Provincial Reconstruction Teams and nongovernmental organizations, will continue to seek to identify families of noncombatant Afghans who were killed or injured or whose homes were damaged during the military operations, and to provide appropriate assistance. The Committee provides $2,500,000 for this purpose.

The Committee strongly supports demining and ordnance and

munitions removal programs in Afghanistan, and notes the work of

No Strings, an organization that uses theater and puppetry to provide lifesaving education about landmines to Afghan children.

The Committee requests the Secretary of State to provide a report not later than 90 days after enactment of this Act on impediments to reconstruction in Afghanistan, including assistance provided by foreign nations or organizations to local and regional Afghan warlords, and fulfillment of commitments made by donors to

Afghanistan.

BURMA

The Committee strongly condemns the May 30, 2003 assault on

democracy in Burma, and deplores the senseless loss of life, injury

and arrest of Burmese civilians by the repressive military junta,

the State Peace and Development Council [SPDC]. The Committee

believes that the attack on democracy leader Daw Aung San Suu

Kyi and the National League for Democracy’s [NLD] convoy under-
25

scores the complete disregard the junta has for the welfare, human

rights, and dignity of the people of Burma.

The Committee calls for the immediate release of Suu Kyi and

all other prisoners of conscience that continue to be held by the

junta, and demands justice for those killed and injured. The Committee notes the Senate’s recent 97–1 vote in support of the Burmese Freedom and Democracy Act of 2003, and counsels the European Union and its acceding countries, the United Nations, and regional neighbors to take similar, decisive measures to support democracy in Burma.

The Committee intends to review the response of regional neighbors to the crisis, and will consider restricting United States foreign assistance to those countries which continue to provide assistance and support to the SPDC. The Committee reiterates that Burma’s myriad problems—including HIV/AIDS, drugs, and refugees—

pose a clear and present security threat to the entire region.

While the Committee supports the provision of HIV/AIDS assistance to the people of Burma through nongovernmental organizations and only after consultation with the NLD, the Committee has

included a reporting requirement to determine the amount of funds

expended by the SPDC on HIV/AIDS programs and the extent to

which nongovernmental organizations are able to conduct HIV/

AIDS programs throughout Burma without interference from the

SPDC. Given the ongoing crackdown against the NLD, within 30

days after enactment of this Act the Committee requests USAID

and State to consult with the Committee on plans to proceed with

HIV/AIDS and other programs in Burma.

In addition, the Committee requests that within 60 days after

enactment of this Act, the State Department report on the effects

on public health stemming from the political crisis in Burma. The

Committee expects this report to be based on the findings of the

U.S. Embassy in Rangoon, and to include information on how U.N.

agencies whose portfolio includes providing assistance on HIV/

AIDS, TB, malaria, and dysentery will continue to provide such assistance during the crisis. The Committee provides $15,000,000 in ESF funds to support democracy activities in Burma, along the Burma-Thailand border, for

activities of Burmese student groups and other organizations located outside Burma, and for the purposes of supporting the provision of humanitarian assistance to displaced Burmese along Burma’s borders. The Committee expects humanitarian assistance for

displaced Burmese to be supplemented by at least $10,000,000

from Migration and Refugee Assistance.

CAMBODIA

The Committee continues restrictions on assistance to the central

Government of Cambodia, with a few exceptions, and remains concerned with lawlessness and impunity in that country. The Committee provides that $7,000,000 shall be made available for assistance for democratic opposition political parties in Cambodia.

The Committee permits the extension of International Military

and Education Training assistance to Cambodia only if the Secretary of State provides to the Committee a list of those individuals

who have been credibly alleged to have ordered or carried out
26

extrajudicial and political killings that occurred during the March

1997 grenade attack against the Khmer Nation Party, the July

1997 coup d’etat, and election related violence that occurred during

the 1998, 2002, and 2003 elections. The Committee recommends

the State Department to consult with a broad range of organizations in creating this list, including the Federal Bureau of Investigations, and domestic and international human rights organizations.

The Committee also restricts funding to any Khmer Rouge tribunal established by the Government of Cambodia unless the Secretary of State certifies that the perpetrators of the March 1997

grenade attack and election-related killings have been arrested and

prosecuted. While the Committee fully supports justice for crimes

committed by Pol Pot and other Khmer Rouge insurgents, it also

remains concerned that corrupt Cambodian courts and judges are

incapable of delivering justice for crimes committed today.

The Committee continues to strongly support the Documentation Center of Cambodia, and recommends not less than $275,000 to

support its activities in fiscal year 2004. The Committee requests

USAID to work with the Center so this assistance may be provided

directly, rather than through a third party organization.

The Committee commends Global Witness for its efforts to monitor compliance with the forestry agreement entered into by the

Cambodian Government and international donors. The Committee

deplores the Cambodian Government’s failure to honor its commitments under the agreement, and its decision to terminate Global

Witness’ monitoring role. The Committee was also disappointed by

the World Bank’s handling of this matter. The Committee believes

that Global Witness continues to have an important role to play in

the protection of Cambodia’s forests, which are threatened by some

of the same government officials who are responsible for protecting

them. The Committee expects that not less than $250,000 in ESF

funds will be provided to support Global Witness’ activities in Cambodia in fiscal year 2004.

CHINA

The Committee provides $35,000,000 for programs to support democracy, human rights and the rule of law in China, Hong Kong,

Taiwan, and Tibet, of which not less than $15,000,000 shall be

made available for programs in China to be administered by the

Bureau of Democracy, Human Rights and Labor at the State Department. These funds are in addition to such sums provided to the

Bureau in the President’s fiscal year 2004 request. The Committee

expects that of the remaining funds, up to $10,000,000 will be provided to the National Endowment for Democracy, and the balance

will be provided to nongovernmental and academic organizations to

support programs relating to China, Tibet, and Hong Kong. The

Committee strongly endorses activities targeted toward freedom of

expression in the media and on the internet, the rule of law, labor

reform, and grassroots elections in China.

The Committee is supportive of a number of important rule of

law programs implemented in China by nongovernmental organizations, academic institutions, and other groups, including the American Bar Association [ABA]. The Committee urges USAID and the
27

State Department to seriously consider proposals by the ABA, and

to give funding priority to those organizations and groups with programmatic experience in China.

CYPRUS

The Committee provides $15,000,000 from the ESF account for

Cyprus to be used for scholarships, bicommunal projects, and measures aimed at reunification of the island and designed to reduce

tensions and promote peace and cooperation between the two communities on Cyprus. The Committee intends that these resources

be made available to maximize leverage to improve prospects for a

peaceful settlement in Cyprus and notes that this amount is

$7,500,000 above the budget request.

DEMOCRATIC REPUBLIC OF THE CONGO

The Committee is concerned with ongoing reports of human

rights violations in Ituri province and the eastern portion of the

Democratic Republic of the Congo [DRC]. The Committee believes

that, because of the mounting frequency and severity of violations

being committed by local and proxy militias, as well as the

politicization and arming of the population in the region, immediate and sustained action by the international community is necessary.

The Committee welcomes the decision of the United Nations to

deploy an Interim Emergency Multinational Force [IEMF] to Bunia

town but is concerned that this force will be unable to intervene

to prevent killings and massacres in Ituri province as a whole. The

Committee urges the State Department to consider how best the

United States can help address the underlying causes of instability

and insecurity there.

The Committee requests the Secretary of State to submit a report, not later than 90 days after enactment of this Act, describing

any continuing links between Ugandan and Rwandan security

forces with the arming and mobilization of local militias in the

DRC.

DEMOCRATIC REPUBLIC OF TIMOR–LESTE

Like last year, the Committee provides $25,000,000 in ESF assistance for East Timor. The Committee intends that, in a shift of

emphasis from prior years, these funds will be used to address conditions of poverty through programs to support subsistence agriculture and other income generating opportunities, expand basic

education and vocational training especially for unemployed youth,

strengthen the judiciary, promote good governance and the sustainable use of natural resources, and improve health care and other

basic human services and physical infrastructure. The Committee

is aware of negotiations between East Timor and Australia over petroleum reserves, which will be of critical importance to the future

economic development and security of East Timor. The Committee

urges both governments to engage in good faith negotiations to resolve their maritime boundary expeditiously in accordance with

international legal principles. The Committee is aware of concerns

regarding accountability in East Timor for future petroleum reve-
28

nues, and supports the early establishment of mechanisms to prevent corruption and ensure that these revenues are used effectively

to improve the lives of the people of East Timor.

GUATEMALA

The Committee continues to be concerned with the unsolved

murders of American citizens in Guatemala, including Larry Lee,

Steven Michael Gartman, Juan Antonio Zimeri, David James Erf,

Robert Orville Edeleman, Sister Barbara Ann Ford, Carlos

Humberto Melgar, and Suzanne Spalding Hendricks. The Committee again requests the State Department to make every effort

to obtain the cooperation of Guatemalan law enforcement authorities in bringing to justice the perpetrators of these crimes.

HAITI

The Committee notes the work of Aid to Artisans, which has

helped to improve the quality and increase sales of Haitian arts

and crafts, and believes that funding for this program should be

continued.

INDONESIA

The Committee appreciates the Indonesian Government’s efforts

to combat terrorism, and deplores the recent bombing of the Indonesian parliament. The Committee is pleased that suspected Islamic militants continue to be apprehended and that ammunition,

chemicals and explosives were recently seized by the Indonesian

police. The Committee supports the continued provision of

counterterrorism [CT] assistance to a police CT unit. The Committee recognizes the serious danger Jemaah Islamiya poses to Indonesian and American interests in that region.

The Committee remains concerned with the situation in Aceh

and reports of internally displaced persons that are being prevented by the Indonesian military from receiving humanitarian assistance from international relief organizations. The Committee expects the State Department to use its influence with the Indonesian government to ensure that relief and human rights organizations receive unimpeded access to this area. The Committee believes that this conflict will only be resolved through a political

process, and urges Indonesian President Megawati Sukarnoputri to

use maximum restraint in military operations in Aceh in order to

safeguard the lives of innocent civilians.

The Committee continues to closely follow progress in the investigation into the attack in Papua on August 31, 2002 that murdered Americans Ted Burgon and Rick Spier and Indonesian

Bambang Riwanto. The Committee expects President Megawati to

use the full authority of her office to bring to justice the perpetrators of this crime. The Committee is also concerned that the Ad

Hoc Human Rights Court on East Timor has failed to deliver justice for crimes committed by the Indonesian military against the

people of East Timor. The Committee expects the Indonesian Government to cooperate with the U.N.-East Timor Serious Crimes

Unit.
29

The Committee is deeply disappointed by President Megawati’s

lack of effort and interest to promote political, economic, legal and

military reforms in Indonesia. This failure of leadership may empower segments of Indonesian society disinterested in reforms, including Islamic extremists and the Indonesian military, which

could have adverse effects on regional security and stability.

The Committee remains concerned that a large portion of the Indonesian military’s budget comes from business enterprises, including illegal activities, which contributes significantly to corruption

within the armed forces. The Committee has continued conditions

on FMF and licenses for export of lethal defense articles for the Indonesian armed forces.

The Committee expects the State Department to provide increased assistance for democracy and rule of law programs in Indonesia, and believes that President Megawati must not allow upcoming parliamentary and presidential elections to become missed opportunities in that country’s political democratic development.

IRAN

The Committee remains concerned with Iran’s intention to develop capabilities to produce weapon-grade fissile material that

could be used in nuclear weapons, and with reports of the final

testing of the Shahab–3 missile, which has a range that endangers

American troops in the Gulf and threatens the security of Israel.

The Committee strongly encourages the administration to take effective measures to address this clear and present danger.

The Committee is also concerned with Iran’s potential influence

on emerging political processes in Iraq and on Iraqi public opinion

toward the Coalition. The Committee notes that a stable and prosperous Iraq is in the interests of all Middle East countries.

The Committee supports the efforts of those in Iran seeking political and economic freedom, and has again provided the authority

for funding of programs and activities to advance democracy and

human rights in Iran.

IRAQ

The Committee provided $2,475,000,000 for relief and reconstruction assistance for Iraq in Public Law 108–11. The Committee provides authority to use ESF funds in this Act for assistance for Iraq,

and an additional $6,500,000 for democracy programs for Iraq is

made available from the Bureau of East Asia and Pacific’s ASEAN

Regional and Regional Democracy accounts. Given that Bureau’s

consistent lack of support for democracy activities in Asia, the

Committee believes that these funds are better spent in Iraq.

The Committee directs the State Department to report within 90

days after enactment of this Act on plans to dispose of equipment

and other material assistance (for which title is vested in the Government of the United States) provided through previous Foreign

Operations Appropriations Acts to opposition Iraqi groups. The

Committee believes that such equipment—or proceeds from the

sale thereof—may be useful to reconstruction efforts in Iraq.

The Committee strongly believes that, to the maximum degree

possible, American companies and expertise should be utilized in

the reconstruction of Iraq. In awarding contracts and subcontracts,
30

USAID and its prime contractors should give preference to American companies and should set aside a portion of work for minority

and disadvantaged businesses including 8(a) certified companies.

The Committee has included a provision which calls for the use

of funds appropriated for Iraq in this Act or prior appropriations

Acts for the removal and safe disposal in Iraq of unexploded ordnance, low level radioactive waste such as depleted uranium, and

other environmental hazards. The Committee believes that the

health and environmental dangers posed by these remnants of war

should be promptly and properly disposed of to avoid further casualties.

The Committee believes that vocational training for Iraqi youth

is an essential element in efforts to rebuild that country’s educational system, and to establish and maintain stability in Iraq.

The Committee notes that the U.S. Job Corps program may serve

as an appropriate and effective model in preparing Iraqi youth for

the workforce, and recommends that USAID and the State Department consider support for vocational training programs in Iraq.

KENYA

The Committee recommends at least $10,000,000 from the ESF

account for assistance for Kenya, and commends the democratic

transition taking place in that country. The Committee believes

that additional assistance is warranted to consolidate the achievements of the December 2002 polls that brought in new leadership

committed to Kenya’s democratic and economic development—and

to combat HIV/AIDS. The Committee directs that additional assistance be provided for democracy and governance programs and activities.

LAOS

The Committee recommends that USAID provide $2,000,000 in

Child Survival and Health Programs Fund and Development Assistance to Laos—one of the world’s poorest and most repressive

countries—through non-governmental organizations. The Committee intends that these funds will not be used to offset or substitute INL funding that would otherwise go to Laos.

The Committee is concerned by the actions of the regime in Laos,

which continues to be responsible for serious human rights abuses.

The Committee is also concerned by the recent detention and trial

of an American citizen and two foreign journalists in Laos. While

the Committee is pleased that these individuals have recently been

released, it is deeply troubled that the fate of four Laotian citizens

accompanying the journalists is still unknown.

LEBANON

The Committee believes that economic development in Lebanon

should be a priority for United States foreign policy in the Middle

East, and provides $35,000,000 in ESF assistance for Lebanon.

However, assistance for the central Government of Lebanon is subject to prior notification.
31

The Committee supports the work of American educational institutions in Lebanon and provides not less than $4,000,000 for scholarships and direct support of these institutions.

The Committee is deeply disappointed that past efforts to secure

the return of American children abducted to Lebanon have been

unsuccessful. The Committee is aware of cases in which the Lebanese Government has failed to enforce the orders of the Lebanese

civil courts. These unresolved cases will continue to be an obstacle

to closer relations between the United States, Lebanese and Syrian

governments. The Committee calls on the Lebanese Government to

ensure that the rule of law is upheld.

LIBERIA

The Committee is disturbed by reports of al-Qaeda and other

Middle Eastern terrorists in Liberia for the purposes of buying

gemstones, and shares the widespread international criticism of Liberian President Charles Taylor for his corrupt and repressive rule.

The Committee strongly supports programs and activities that promote human rights, democracy and the rule of law in Liberia, and

encourages greater linkages between Liberian opposition political

parties and civil society and American organizations and academic

institutions. The Committee notes the courageous work of NGOs in

Liberia, such as the Archdiocese of Monrovia and the Justice and

Peace Commission chaired by Archbishop Michael Kpakala

Francis.

The Committee encourages the State Department to be prepared

to address a wide range of political and economic development

issues, should Charles Taylor abdicate power.

MOLDOVA

The Committee notes with concern irregularities that marred recent elections in Moldova, including the arrest and harassment of

opposition candidates, intimidation and suppression of independent

media, and state run media bias in favor of candidates backed by

the Moldovan Government. The Committee condemns efforts to reverse economic, political, media and judicial reforms, and is wary

of authoritarian recidivism in Moldova.

The Committee requests the State Department to provide increased assistance to democracy and media programs in Moldova.

MONGOLIA

The Committee supports full funding for the budget request for

Mongolia, and intends to continue to closely follow political developments in that country. The Committee is troubled by the actions

of the Mongolian Government late last year to crack down on

peaceful demonstrators in Ulaan Baatar and to restrict freedom of

the press.

The Committee observes with concern the economically destabilizing demands by the Russian Federation on Mongolia to settle

inflated debt claims. The Committee views these demands as an

extortionate attempt to force Mongolia to pay for the cost of its occupation by the former Soviet Union from 1922 to 1992.
32

NEPAL

The Committee condemns the acts of terrorism waged by Maoist

rebels against the people of Nepal, and calls for continued efforts

to secure a political solution to the ongoing conflict. The Committee

underscores the importance of providing human rights education

and training to military and police personnel, and expects the Nepalese government to conduct credible investigations and prosecutions of those responsible for human rights violations against innocent civilians.

NICARAGUA

The Committee believes that President Enrique Bolanos of Nicaragua deserves strong support for launching a courageous anti-corruption campaign, including issuing indictments against the former

President, several of his closest relatives and associates and many

high ranking former government officials. The Bolanos government

has worked with the assistance of the Department of Justice on

several of these investigations. Despite these welcome steps, Nicaragua remains among the most severely impoverished countries in

this hemisphere. Unemployment is widespread. Subsistence farmers are facing increased hardships. The collapse in coffee prices has

exacerbated an already dire situation. The Committee requests

USAID and the State Department to review United States assistance programs for Nicaragua with a view toward more substantially and effectively addressing these urgent needs, and to consult

with the Committee as it prepares its fiscal year 2005 budget request for Nicaragua.

The Committee recognizes the important work of the Fabretto

Children’s Foundation, which provides essential opportunities for

children in Nicaragua to escape poverty. The Committee recommends that USAID provide up to $2,600,000 to support the

Fabretto Education for Employment Initiative.

NIGERIA

The Committee notes that the April 2003 presidential elections

in Nigeria marked the first transfer of power from one civilian government to another in that country’s history. However, the Committee believes that this strategically important West African nation has much progress to make in entrenching democracy (as demonstrated by the widespread reports of irregularities and fraud during the recent elections), the rule of law and increasing respect for

human rights.

As few of Nigeria’s nascent political parties were established

prior to 2002, the Committee directs USAID to adequately fund

programs that strengthen political parties in Nigeria. In addition,

the Committee supports activities targeted toward the development

of a vibrant civil society in Nigeria that will promote transparency

and accountability within that country.

The Committee remains concerned with the human rights situation in Nigeria, particularly with abuses committed by the Nigerian

armed forces. The Committee believes that progress by the Nigerian Government to hold accountable those in the armed forces responsible for violations would help demonstrate a commitment to
33

human rights and build confidence in the United States-Nigerian

security assistance relationship. The Committee commends the administration’s careful approach to security assistance for Nigeria,

in accordance with section 557 of Public Law 108–7, and has included an identical provision in this Act.

NORTH KOREA

The Committee condemns North Korea for its continued belligerence, and recognizes the growing threat to the region posed by

North Korea’s nuclear program, narcotics trafficking, and proliferation of weapons and weapons technology. The Committee directs

the State Department to submit a report to the Committee, in classified form if necessary, no later than 90 days after enactment of

this Act on the extent of North Korea’s narcotics trafficking (including countries impacted or directly, or indirectly, involved in the

drug trade), a listing of nations or organizations that have requested or received North Korean weapons or weapons technology,

and the implications of a North East Asia nuclear arms race.

The Committee remains concerned with the plight of the North

Korean people, and directs the State Department to increase assistance programs that provide humanitarian relief to North Korean

refugees. The Committee again recommends the State Department

and USAID to provide $10,000,000 to safeguard the human rights

and dignity of North Korean refugees and asylum seekers, whether

through the establishment of camps, contributions to organizations,

or other means.

PAKISTAN

The Committee appreciates the continued efforts of the Government of Pakistan to combat international terrorism, and encourages greater investment by Pakistan in programs that deprive and

undermine support for extremists. The Committee notes that these

activities include increased security and patrolling of Pakistan’s

borders, and contributions to health, education, good governance,

democracy, and rule of law programs.

While the Committee supports the budget request for Pakistan,

it recommends continued vigilance by USAID and the State Department on the use of United States foreign assistance in Pakistan.

The Committee is troubled by reports of Taliban activity inside

of Pakistan’s borders, and shares the concerns of Afghan President

Hamid Karzai that cross-border attacks contribute to an insecure

environment in Afghanistan.

The Committee provides that, of the funds made available under

the heading Economic Support Fund, not less than $10,000,000

should be made available to support programs and activities conducted by indigenous organizations that seek to further educational, health, employment, and other opportunities for the people of Pakistan. The Committee provides $4,000,000 for programs

implemented by the Pakistan Human Development Fund, and

$1,000,000 for education programs conducted by the Amanut Society.
34

SIERRA LEONE

The Committee notes that the United States has devoted substantial resources to help bring stability and relief to Sierra Leone

through the United Nations Mission in Sierra Leone and Operation

Focus Relief. Accordingly, the Committee believes that this

progress should be enhanced through additional assistance for Sierra Leone, targeted to improve access to education, reduce poverty, and combat corruption. The Committee requests USAID to

consult with the Committee on the feasibility of establishing a mission in Sierra Leone to more effectively implement and monitor

United States assistance programs.

The Committee commends the work of the Special Court for Sierra Leone, which has moved swiftly and efficiently to indict key

figures—including Charles Taylor—alleged to be responsible for

atrocities in Sierra Leone and to facilitate the reconciliation process

in that country. The Committee continues to believe that Charles

Taylor should be brought to justice before the Special Court.

While the United States has fulfilled its contribution to the Special Court, the Committee notes that the State Department, in

prior fiscal years, ignored directives from Congress to accelerate

the funding schedule for its contribution in order to more effectively meet the front-loaded costs of establishing the Court. As a

result, there are key areas, including security, transportation, and

outreach, that remain seriously under-funded. Because of this and

the fact that the Special Court could become a successful model for

prosecuting others accused of war crimes elsewhere, the Committee

has provided $2,500,000 to help meet these costs. The Committee

expects that these funds will not come from ESF funds that would

otherwise be available for Africa.

THAILAND

The Committee condemns the Thai Government’s crack down on

Burmese democracy activists in Thailand, and deplores the deportation of Burmese to Burma. The Committee is concerned with the

fate of these individuals at the hands of the repressive military

junta.

The Committee is alarmed at reports of Thai authorities hampering the delivery of humanitarian assistance to Burmese seeking

refuge in Thailand. The Committee expects the State Department

to more aggressively engage the Thai Government in order that the

plight of people in Thailand who have fled political, economic, and

ethnic repression is more effectively addressed.

While the manufacturing and trafficking of narcotics in Burma

directly and substantially contributes to Thailand’s drug crisis, the

Committee shares the State Department’s concern with extra-judicial killings associated with Thailand’s campaign against narcotics

traffickers and drug users. The Committee counsels Thailand’s

elected leaders to respect the rule of law in the conduct of anti-narcotics programs and activities.

TIBET

The Committee recommends $3,000,000 in ESF assistance for

programs that provide training and education to Tibetans in de-
35

mocracy and human rights, preserve cultural traditions, and promote economic development and environmental conservation in the

Tibetan Autonomous Region and in other Tibetan communities in

China where such activities are underway. The Committee believes

that the Office of the Special Coordinator for Tibetan Issues should

be closely consulted on the allocation of these funds. The Committee is aware of the unique role of the Bridge Fund and the work

that The Mountain Institute and other groups have provided to

support local livelihoods and educational, cultural, and natural resource conservation projects in Tibet. The Committee urges the administration to support the Bridge Fund and other organizations

with a proven track record working in Tibet.

UGANDA

The Committee is aware of Uganda’s support to combat international terrorism, as well as its ongoing struggle against the

Lord’s Resistance Army [LRA], which is designated as a foreign terrorist organization by the State Department. The Committee encourages the State Department to consider providing non-lethal,

counter-terrorism surveillance assistance for Uganda.

The Committee commends efforts to formulate a strategy to mitigate the humanitarian crisis in Northern Uganda which has killed

or displaced hundreds of thousands of Ugandan and Sudanese civilians. The Committee recognizes that security conditions have severely hampered humanitarian relief efforts and urges the State

Department to work with Acholi religious leaders and others to

help facilitate a peaceful resolution to the 16-year old conflict. The

Committee believes that, if security conditions permit, USAID

should significantly increase funding from Disaster Assistance, the

Famine Fund, and other accounts to meet critical humanitarian

needs. The Committee requests to be consulted on this issue by

USAID within 60 days after enactment of this Act.

The Committee is increasingly concerned about the slow pace of

democratic reform in Uganda, and expects the administration to

make this a priority in its relations with the Museveni government

and to support the development of democratic political parties in

Uganda.

INTERNATIONAL DISASTER ASSISTANCE

Appropriations, 2003 ............................................................................. $288,115,000

Emergency supplemental ...................................................................... 143,800,000

Budget estimate, 2004 ........................................................................... 235,500,000

Committee recommendation ................................................................. 235,500,000

The Committee provides $235,500,000 for International Disaster

Assistance programs, which is equal to the budget request. The

Committee expects these funds to be used to meet the urgent needs

of humanitarian emergencies, including in Afghanistan and Iraq.

The Committee is disappointed that USAID has done little to implement section 3013 of Public Law 107–171 concerning the nutrient content of United States food aid. The Committee notes that

USAID may be funding ‘‘food aid development and enhancement

projects’’ pursuant to section 3013, and is concerned that these

projects may have little to do with improving standards and controls for nutrient quality and content. The Committee believes that
36

one approach to improving performance is to have USAID’s Office

for Food for Peace administer this program. The Committee also

urges USAID to work with SUSTAIN to follow up on the issues

highlighted in the 2001 Compliance Review, which was specifically

mentioned in section 3013.

FAMINE FUND

Appropriations, 2003 ............................................................................. ...........................

Budget estimate, 2004 ........................................................................... $200,000,000

Committee recommendation ................................................................. 100,000,000

The Committee provides $100,000,000 for famine prevention and

relief, including for the mitigation of the effects of famine.

TRANSITION INITIATIVES

Appropriations, 2003 ............................................................................. $49,675,000

Budget estimate, 2004 ........................................................................... 55,000,000

Committee recommendation ................................................................. 55,000,000

The Committee continues to support the work of USAID’s Office

of Transition Initiatives [OTI], which is on the ground in countries

around the world providing essential assistance to bridge the gap

between emergency relief and long-term development.

The Committee recognizes OTI’s important contributions to reconstruction efforts in Iraq.

DEVELOPMENT CREDIT AUTHORITY

OPERATING EXPENSES

Appropriations, 2003 ............................................................................. $7,542,000

Budget estimate, 2004 ........................................................................... 8,000,000

Committee recommendation ................................................................. 8,000,000

PAYMENT TO THE FOREIGN SERVICE RETIREMENT AND DISABILITY

FUND

Appropriations, 2003 ............................................................................. $45,200,000

Budget estimate, 2004 ........................................................................... 43,859,000

Committee recommendation ................................................................. 43,859,000

The Foreign Service retirement and disability fund is a mandatory expense of USAID.

OPERATING EXPENSES OF THE UNITED STATES AGENCY FOR

INTERNATIONAL DEVELOPMENT

Appropriations, 2003 ............................................................................. $568,282,000

Emergency supplemental ...................................................................... 24,500,000

Budget estimate, 2004 ........................................................................... 604,100,000

Committee recommendation ................................................................. 604,100,000

The Committee provides $604,100,000 for operating expenses of

the United States Agency for International Development. The Committee remains concerned about USAID’s deficient financial, procurement, and personnel management systems, and recognizes that

solving these problems will be costly. The Committee is also concerned that USAID is severely understaffed and is unable to effectively implement its programs. The Committee expects the fiscal

year 2005 budget request to address this problem.
37

CAPITAL INVESTMENT FUND

Appropriations, 2003 ............................................................................. $42,721,000

Budget estimate, 2004 ........................................................................... 146,300,000

Committee recommendation ................................................................. 100,000,000

The Committee provides $100,000,000 for the Capital Investment

Fund. The Committee expects priority to be placed on overseas requirements in Cambodia, Uganda, Guinea, Armenia, and Mali.

OPERATING EXPENSES OF THE OFFICE OF THE INSPECTOR GENERAL

Appropriations, 2003 ............................................................................. $33,084,000

Budget estimate, 2004 ........................................................................... 35,000,000

Committee recommendation ................................................................. 35,000,000

The Committee provides $35,000,000 for operating expenses of

the Office of the Inspector General.

OTHER BILATERAL ECONOMIC ASSISTANCE

ECONOMIC SUPPORT FUND

Appropriations, 2003 ............................................................................. $2,255,244,000

Emergency supplemental ...................................................................... 2,422,000,000

Budget estimate, 2004 ........................................................................... 2,535,000,000

Committee recommendation ................................................................. 2,415,000,000

MIDDLE EAST COUNTRIES

In 1998, the United States reached agreements with the Governments of Israel and Egypt to reduce the levels of ESF assistance

for these countries over a 10-year schedule. In accordance with this

schedule, the Committee provides $480,000,000 for Israel and

$575,000,000 for Egypt for fiscal year 2004. The Committee provides $250,000,000 for assistance for Jordan, which reflects the

amount requested by the administration. The Committee supports

$75,000,000 for assistance to the Palestinian people in the West

Bank and Gaza, as requested by the administration, and notes that

restrictions on the use of funds provided under the Act remain unchanged from prior years.

The Committee remains concerned with the situation in the Middle East, and, in particular, with the welfare of the Israeli and Palestinian people. The Committee encourages continued efforts by all

parties to achieve lasting peace in the region.

The Committee believes that political, legal, and economic reform

programs should continue in the West Bank and Gaza. The Committee recognizes that calls for reform already exist within Palestinian civil society, and supports the provision of assistance to

those groups and associations, including from the United States,

advocating greater transparency, accountability, and political pluralism. The Committee notes that rule of law programs would enhance these reforms and provides that $1,000,000 should be used

to further legal reforms in the West Bank and Gaza.

The Committee recognizes that Egypt is a vital and strategic ally

of the United States and plays an important role in the Middle

East peace process. However, the Committee remains concerned

with challenges to the rule of law, human rights, and democracy

in Egypt. The Committee commends the State Department for undertaking a review of assistance programs for Egypt.
38

The Committee regrets that the U.S.-Israel Cooperative Development Program will no longer by funded, and urges USAID to explore ways of continuing to utilize the expertise accumulated by

this program, including that of Israel’s Center for International Cooperation [MASHAV]. The Committee also supports the ongoing

Cooperative Development Research programs and the CDR/Central

Asian Republic program, and expects that these activities will be

funded at their current levels.

The Committee supports the efforts of the International Arid

Lands Consortium to make arid and semi-arid lands more productive and habitable. The Committee recommends that up to

$2,500,000 be provided to the Consortium for programs in, among

other countries, Afghanistan, Pakistan, Iraq, and India.

The Committee requests USAID to provide funding for the First

Regional Cooperative Program for Health to be conducted by the

Hebrew University’s Kuvin Center and Al-Quds University.

MIDDLE EAST PARTNERSHIP INITIATIVE

The Committee supports the budget request of $145,000,000 for

the Middle East Partnership Initiative, including for scholarships

for needy Muslim students at the American University of Beirut.

DEMOCRACY PROGRAMS

The Committee strongly supports democracy programs and activities conducted by nongovernmental organizations. In particular,

the Committee supports programs that strengthen democratic political parties, develop an active civil society, and promote legal reforms and free markets.

The Committee believes that linkages between democracy and

development are undeniable. While United States foreign assistance serves many purposes, its uses are maximized when foreign

governments have the political will—checked by a loyal opposition,

active civil societies, and responsible press—to apply that aid in an

effective and transparent manner in which it was intended to be

used. The impact of any assistance, however well intention or delivered, is severely restricted in countries burdened by authoritarian

and corrupt leadership—such as in Zimbabwe, Burma and Cambodia. In those countries, democracy promotion should be the top

priority for both the State Department and USAID.

The Committee recognizes that in addition to sufficient funding,

furthering freedom abroad requires long term commitment and vigilance by donors and implementers. The role of the State Department, in particular, is critical in ensuring that voices calling for

freedoms are not silenced in closed and transitional countries. The

Committee recommends that the State Department and USAID

more thoroughly include democracy promotion in country strategies, and better coordinate activities among various Bureaus to ensure consistency in the implementation and support of these programs. The Committee expects the State Department to take an active, principled, forceful, and public position in those countries

where democracy activists are threatened.

As in fiscal year 2003, the Committee remains concerned with

the inconsistent application of democracy programs by the State

Department and USAID, and the lack of coordination of these pro-
39

grams within, and between, the agencies. The Committee again

recommends that the State Department and USAID centralize

oversight and coordination of democracy programs within the Bureau of Democracy, Human Rights, and Labor. The Committee also

recommends that grants and cooperative agreements be the preferred funding mechanism for democracy promotion efforts.

The Committee suggests that nongovernmental organizations be

utilized to a greater extent in the promotion of democracy abroad,

and recognizes the important contributions to the cause of freedom

made by, among other organizations, the National Democratic Institute, the International Republican Institute, the Center for

International Private Enterprise, the International Foundation for

Elections Systems, the American Center for International Labor

Solidarity, the National Endowment for Democracy, and Partners

for Democratic Change.

The Committee notes the success of USAID’s CEPPS mechanism

as a means of funding democracy programs, and recommends that

it be utilized to a greater extent in the future. The Committee directs that CEPPS core funds be increased over prior year levels in

order to allow USAID to respond more quickly and effectively to urgent democracy building opportunities. The Committee requests

USAID to report to the Committee not later than 90 days after enactment of this Act on anticipated contributions to the CEPPS

funding mechanism from all accounts.

CONFLICT RESOLUTION

The Committee provides $15,000,000 in ESF and SEED funds to

support conflict resolution programs and activities which bring together individuals of different ethnic, religious, and political backgrounds from areas of civil conflict and war. The Committee notes

the strong bipartisan congressional and public interest in programs

which promote understanding and reconciliation in the Middle East

and elsewhere, and intends that the State Department and USAID

will establish an efficient and effective mechanism for evaluating

and funding proposals for the use of these funds. The Committee

believes that the following organizations are among those deserving

of consideration and support—

—The Arava Institute for Environmental Studies, which manages programs that bring college age Arabs and Israelis together to promote better relations and solve common environmental problems;

—Seeds of Peace, a widely respected organization which promotes understanding between teenagers in the Middle East,

Cyprus, and the Balkans;

—Jerusalem International YMCA, which brings together Christian, Jewish and Muslim youth in a positive environment that

promotes peace, respect and understanding;

—The International Crisis Group, whose reports analyze the

causes of conflict and whose recommendations assist in the formulation of policies and programs by the United States, United

Nations, and others;

—Center for Human Dignity Museum of Tolerance Jerusalem (a

Simon Wiesenthal Center project), which will promote greater
40

awareness of racism, bigotry, anti-Semitism and intolerance

through both historical and contemporary contexts; and

—Interns for Peace, which unites youth, women and diverse ethnic groups in cooperative development in the Middle East and

elsewhere.

The Committee provides $3,000,000 to support the Foundation

for Security and Sustainability, a public institute chartered to further understanding about resource scarcity and environmental

problems and provide opportunities to avert and better prepare for

potential crises.

TERRORISM IN SOUTHEAST ASIA

The Committee remains concerned with the ability of terrorists

to gain footholds in Muslim communities throughout Southeast

Asia, including in Indonesia, Malaysia, southern Thailand, the

Philippines, and Cambodia. The Committee strongly recommends

USAID and the State Department to fund programs that bolster

the efforts of Asian democratic political parties, nongovernmental

organizations and individuals to further economic, political, social

and legal reforms that may serve as a bulwark against terrorism.

The Committee expects that not less than $2,000,000 be made

available to support the Alliance for Reform and Democracy in Asia

[ARDA]. The Committee commends the membership of ARDA for

their collective commitment to further freedom and liberty throughout Asia.

WAR CRIMES TRIBUNALS

The Committee continues to support the war crimes tribunals in

Yugoslavia, Rwanda, and Sierra Leone. The Committee expects the

administration to ensure that the tribunals have sufficient budgets,

staff, and equipment, and provides $30,000,000 in drawdown authority for war crimes tribunals established or authorized by the

U.N. Security Council with U.S. support, including the tribunal in

Sierra Leone. The Committee also urges the administration, where

appropriate, to support commissions or judicial bodies that complement the activities of these tribunals. The Committee notes that

drawdowns made under this section are unrelated to the establishment of an international criminal court.

The Committee notes that in Public Law 108–11, Congress appropriated $10,000,000 for a contribution to an Iraq War Crimes

Tribunal or investigations into allegations of war crimes, crimes

against humanity, or genocide committed by Saddam Hussein or

other Iraqis. The Committee requests the State Department to inform the Committee about the status of these funds no later than

30 days after enactment of this Act.

DEMOCRACY, TRANSPARENCY, AND THE RULE OF LAW IN ISLAMIC

COUNTRIES

The Committee provides $25,000,000 for programs and activities

which foster democracy, human rights, civic education, women’s development, press freedoms, and the rule of law in countries with

a significant Muslim population. Of these funds, the Committee

provides $15,000,000 for the Human Rights and Democracy Fund
41

of the Bureau of Democracy, Human Rights and Labor and

$5,000,000 for the National Endowment for Democracy. The Committee again includes $3,000,000 for professional training for journalists.

FREE AND INDEPENDENT MEDIA

The Committee continues to support programs to promote free,

independent and professional media in developing nations. The

Committee expects USAID and the State Department to fund new,

and bolster ongoing, media programs and activities in predominately Muslim countries, including Iraq, Afghanistan, Pakistan,

Egypt and Indonesia. The Committee expects that funding will be

used primarily to support programs that provide skills development

and promote a deeper understanding of the United States. The

Committee believes that free, independent and professional media

will provide objective news and credible information throughout the

Muslim world, which may help to counterbalance political and religious extremism and terrorism.

CONFLICT DIAMONDS

The Committee notes that important steps have recently been

taken, including the establishment of the Kimberley Process Certification Scheme [KPCS] and the enactment of the Clean Diamond

Trade Act [CDTA], to curtail the flow of conflict diamonds. Despite

this progress, much more needs to be done to fully implement the

CDTA, ensure that the KPCS is effective and prevent revenue from

both rough and polished diamonds from contributing to conflict.

The Committee believes that one of the immediate goals of the

United States and the international community should be to

strengthen KPCS, which is in need of resources to better address

issues central to the Kimberley process, including monitoring,

membership criteria, statistics collection, and coordination. In fiscal

year 2003, Congress provided funds to help implement and enforce

KPCS but believes that more assistance will be required to make

KPCS a viable mechanism to effectively inhibit the flow of conflict

diamonds. The Committee provides $2,500,000 for this purpose for

fiscal year 2004 and urges the administration to request funding

for this purpose next year.

The Committee urges foreign governments, the diamond industry, and NGOs to make substantial contributions to ensure the success of the KPCS and other measures to curb the trade in conflict

diamonds.

The Committee is aware that regulations pursuant to the CDTA

must be issued, implemented, and reviewed by the Kimberley Process by July 31, 2003 in order for the United States to effectively

participate in the KPCS. The Committee believes that is extremely

important that this deadline is met.

PARTNERSHIP TO ELIMINATE SWEATSHOPS

The Committee supports the Partnership to Eliminate Sweatshops, which facilitates cooperation among corporations, consumers, non-governmental organizations, universities, organized

labor, and others to address unacceptable working conditions
42

around the world through a variety of approaches. The Committee

recommends that $3,000,000 be made available for this program.

GLOBAL AIDS INITIATIVE

Appropriations, 2003 ............................................................................. ...........................

Budget estimate, 2004 ........................................................................... $450,000,000

Committee recommendation ................................................................. 700,000,000

The Committee provides $700,000,000 for the Global AIDS Initiative [GAI], of which up to $250,000,000 may be made available for

a United States contribution to the Global Fund to Fight AIDS, Tuberculosis and Malaria. This is an increase of $150,000,000 above

the budget request and equivalent to the fiscal year 2003 level.

The Committee provides $150,000,000 for the International

Mother and Child HIV Prevention Initiative under this account.

Of the funds made available under the GAI, not more than

$8,000,000 is made available for administrative expenses of the office of ‘‘Coordinator of United States Government Activities to Combat HIV/AIDS Globally’’ at the State Department. The Committee

expects that the budget submission for the State Department for

fiscal year 2005 will include funding for the administrative costs of

the Coordinator’s office as part of the Department’s request for

‘‘Diplomatic and Consular Programs.’’

ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC STATES

Appropriations, 2003 ............................................................................. $521,587,000

Budget estimate, 2004 ........................................................................... 435,000,000

Committee recommendation ................................................................. 445,000,000

The Committee provides $445,000,000 for Eastern Europe and

the Baltic States, which is $10,000,000 above the budget request.

While the Committee supports and encourages the graduation of

countries from receiving U.S. foreign assistance, several countries

in this region, which are vital to U.S. interests, continue to require

substantial support to further implement critically needed democratic reforms and to promote economic development.

INTERNATIONAL LEGAL AND ECONOMIC INITIATIVES

The Committee supports the efforts of the American Bar Association [ABA] and its CEELI programs to strengthen democracy and

the rule of law in Central and Eastern Europe. The Committee expects funding for CEELI’s programs to remain at not less than the

funding level provided in fiscal year 2003, and recommends that

these programs continue to be funded only through cooperative

agreements. The Committee requests that the State Department

and USAID consider providing $2,000,000 for the renovation of the

CEELI Institute in Prague.

The Committee notes the work of the Center for Economic Research and Graduate Education Institute, which promotes economic

growth and reform in Central and Eastern Europe.

KOSOVO

The Committee continues to support reconstruction, reform, and

reconciliation efforts in Kosovo, and recommends that not less than

$85,000,000 should be made available for assistance for Kosovo
43

under the heading Assistance for Eastern Europe and the Baltic

States.

YOUTH PROGRAMS

The Committee provides that not less $1,000,000 should be made

available for a program to promote greater understanding and

interaction among youth in Albania, Kosovo, Montenegro and Macedonia. Given the success of its women’s development program in

Kosovo, the Committee expects the National Albanian American

Council to conduct this program.

SERBIA

The Committee is pleased that reform efforts in Serbia were not

adversely impacted by the murder of Prime Minister Zoran Djindjic

earlier this year, as some had ominously predicted. The Committee

urges Serbian authorities to continue and accelerate political, economic, legal and military reforms that are essential to Serbia’s long

term recovery and reconciliation with its neighbors.

The Committee notes that some progress has been made in cooperating with the International Criminal Tribunal for the Former

Yugoslavia [ICTY], but believes that more must be done. All remaining indictees should be arrested and transferred to The

Hague, including Radtko Mladic, and access to archives and witnesses should not be obstructed or delayed. The Committee is willing to reconsider the annual certification contained in this Act if,

by the date of conference with the House of Representatives, substantial progress is made in cooperating with ICTY, including the

apprehension and transfer of Mr. Mladic to The Hague.

The Committee commends the political will demonstrated by Serbian authorities in the crackdown against organized crime. The

Committee underscores the need to afford those arrested all rights

and responsibilities guaranteed under Serbian law.

The Committee is concerned that almost 3 years after Serbia

chose the path of democracy, the Serbian Government has no strategy for ensuring that independent media can function effectively

and efficiently. The Committee believes that the new Public Information Act should be modified to address several provisions which

may result in unwarranted press censorship and that the transfer

of ownership of state-owned media needs to be expedited. The Committee also notes that there is no agency to regulate the distribution of radio frequencies and television channels.

The Committee expects that State Department to continue to

consult with the Committee on linkages between Yugoslav defense

companies and the former regime in Iraq.

Like last year, the Committee recommends increased assistance

for Serbia, above the fiscal year 2004 request of $95,000,000 from

the SEED account.

ASSISTANCE FOR THE INDEPENDENT STATES OF THE FORMER SOVIET

UNION

Appropriations, 2003 ............................................................................. $755,060,000

Budget estimate, 2004 ........................................................................... 576,000,000

Committee recommendation ................................................................. 596,000,000
44

The Committee provides $596,000,000 for Assistance for the

Independent States of the Former Soviet Union, which is

$20,000,000 above the budget request.

RUSSIA

The Committee is concerned that the administration’s proposed

$75,000,000 cut in foreign assistance for Russia will jeopardize the

success of ongoing health, economic, political, and legal reform programs. The Committee recommends a more measured reduction of

activities, and directs that not less than $93,000,000 be made available for assistance for Russia. This amount is $20,000,000 above

the budget request. The Committee expects that a significant portion of this funding increase will be targeted toward democracy and

rule of law programs in Russia.

The Committee joins with the State Department in its condemnation of the harassment of Americans involved in cooperative

programs in Russia by that country’s security services. The Committee notes that the Peace Corps, coordinators of Russian Far

East programs, and other groups and individuals involved in foreign assistance programs in Russia have been targets of official

harassment.

The Committee recommends that the State Department and

USAID provide at least $1,000,000 for Communities for International Development, a new non-profit organization dedicated to

promoting cooperative programs and activities between sister cities

in the United States and Russia. The Committee supports activities

that reinforce the Cooperative Threat Reduction Initiative and

urges the relevant agencies to work to eliminate unnecessary overlap that may be occurring with respect to the implementation of

these programs.

RUSSIAN FAR EAST

The Committee is particularly disturbed by the potential impact

of reduced assistance to successful economic development programs

in the Russian Far East [RFE], and provides that $20,000,000 shall

be made available solely for this region. The Committee also provides that not less than $3,000,000 shall be made available for

technical assistance for the RFE. In conducting programmatic and

other assessments, the Committee instructs USAID and the State

Department to more closely consult its partners who have over a

decade of development experience in the region.

PUBLIC HEALTH PROGRAMS

The Committee is aware of the Primary Health Care Initiative

of the World Council of Hellenes, which was instituted in the

former Soviet republics to provide desperately needed basic health

care. This program, which is alleviating suffering of people through

thousands of visits each month, also enhances U.S. relations with

these countries. The Committee recommends $2,500,000 for this

program in fiscal year 2004, and directs that these funds be allocated by the State Department.

The Committee continues to support the work of the Eurasian

Medical Education program of the American College of Physicians,
45

which relies on the volunteer partnership contribution of American

physicians who share medical skills and knowledge with Russian

physicians. The Committee expects that funding for this program

in fiscal year 2004 will be at least the amount provided in fiscal

year 2003.

ORPHANS

The Committee continues to support USAID’s Russian orphans

strategy, which focuses on programs to reduce the number of children entering state orphanages and works with orphanage officials

to meet the immediate medical and basic needs of these children.

The Committee applauds the work of Holt International Children’s

Services and Mercy Corps International.

The Committee supports the work of Kidsave International for

Children of the Former Soviet Union, and expects that $200,000

will be provided to support interventions that help countries move

children without parents into permanency.

The Committee expects USAID to work with non-profit groups,

especially those with contacts in the Russian Far East, including

Rotary International, the Anchorage Interfaith Council, and the

Municipality of Anchorage. The Committee recommends $7,000,000

for these groups in fiscal year 2004.

DEMOCRACY AND LEGAL EDUCATION

The Committee strongly supports USAID’s rule of law and

human rights programs in Russia, which funds programs conducted by the Russian American Judicial Partnership and the Russian American Rule of Law Consortium. These cost effective activities—implemented through the volunteer services of hundreds of

American lawyers, judges and law professors—have played a key

role in the development of a more sound legal system which is critical to attracting and maintaining local and foreign investment

that will enable a strong market economy to flourish. The Committee believes that as assistance to Russia declines, adequate

funding to maintain these programs should be a high priority.

The Committee also supports the USAID-funded program for distance learning legal education that has been initiated in the Central and East European region, and recommends continued funding

for this program. The Committee is also aware of the potential to

provide distance learning legal studies into Central Asia and urges

USAID to expand the program to that region.

The Committee notes the important work being done by American University-Central Asia in promoting stability, moderation

and democratic values in Kyrgystan and throughout the region.

The University’s graduates will form the core of the next generation of leadership in Central Asian countries. The Committee supports funding for the University in fiscal year 2004 on a public-private matching basis.

ARMENIA

The Committee provides $75,000,000 under the heading Assistance for the Independent States of the Former Soviet Union for assistance for Armenia, which is $25,500,000 above the budget re-
46

quest. The Committee appreciates the administration’s efforts to

graduate specific countries from receiving United States foreign assistance, but believes the $40,500,000 reduction proposed for Armenia in fiscal year 2004 will prematurely terminate ongoing development programs.

The Committee continues to closely follow political and economic

developments in the region, particularly efforts to secure a peaceful

resolution to the Nagorno-Karabakh conflict. The Committee reiterates its support for a mutually acceptable negotiated solution, and

continues to endorse confidence-building measures among all parties to the conflict.

The Committee provides that $2,500,000 shall be made available

for Armenia in the Foreign Military Financing account, and directs

that not less than $900,000 be made available in International

Military Education and Training funds. The Committee recommends that military assistance provided to Armenia be used to

enhance communications capabilities. The Committee regrets that

Armenia was not more supportive of Operation Iraqi Freedom.

UKRAINE

While the Committee appreciates Ukraine’s support of military

operations in Iraq, it remains concerned with the democratic development of that county. The Committee notes that similar concerns

were expressed by the people of Ukraine through demonstrations

earlier this year calling for President Kuchma’s resignation.

The Committee notes the importance of the 2004 presidential

election in Ukraine and the need for a free and fair electoral process. The Committee continues to strongly support the development

of a multi-party system in that country, and expects the Ukrainian

Government to permit political parties and civic organizations to

conduct election observation activities to ensure the integrity of the

polls. The Committee also urges Ukrainian authorities to register,

without delay, international organizations seeking to support

democratic institutions and processes. Moreover, the Committee believes that the Ukrainian Government should not be given the authority by USAID or the State Department to approve, interfere

with, or shape U.S. democracy assistance programs.

The Committee commends the State Department for reassessing

assistance for Ukraine, and renewed emphasis on democracy and

rule of law programs. The Committee remains concerned with an

investment climate that is less than favorable to foreign businesses, particularly the lack of transparency and fair resolution of

business disputes.

The Committee provides not less than $20,000,000 shall be made

available for nuclear reactor safety initiatives, of which $14,000,000

should be for simulator-related projects. The Committee notes

these safety programs are in the security interests of the United

States. The Committee again provides funding for coal mine safety

programs.

GEORGIA

The Committee provides $75,000,000 for assistance for Georgia.

The Committee strongly supports continuation of successful programs targeted toward enhancing border security, and recommends
47

that the State Department provide sufficient funding for the democracy and rule of law programs.

The Committee remains concerned about mob attacks against

non-Orthodox religious communities in Georgia, and is troubled by

the apparent inability or unwillingness of the Georgian Government to ensure the safety of religious groups. The Committee expects the Georgian Government to stop these attacks, and to arrest

and punish those responsible. In addition, the Committee urges the

State Department to raise this matter with relevant Georgian authorities. Progress on the protection of religious freedom in Georgia

must be measured by concrete actions, and not words alone.

NAGORNO-KARABAKH

The Committee directs that not less than $5,000,000 should be

made available for humanitarian and relief assistance for NagornoKarabakh. The Committee strongly supports the provision of such

assistance to meet basic human needs, including drinking water

programs. The Committee expects USAID to consult with the Committee within 60 days after the enactment of this Act on plans for

disbursement of these funds.

POLLUTION IN CENTRAL ASIA

The Committee is concerned about the extensive environmental

pollution in the Central Asia region, and its severe, adverse effects

on public health, particularly on the health of children. Toxic chemical waste, power plant emissions, mining tailings, oil pollution,

and other environmental hazards are pervasive threats. The Committee believes USAID should strongly support efforts, such as

those of the Institute for Sustainable Communities, to mitigate the

effects of environmental pollution on human health. These efforts

should focus on strengthening the capacity of local government and

civil society to address these problems by increasing knowledge,

improving policies, building partnerships, and identifying specific

environmental health improvements and developing strategies to

implement and replicate them.

TRUST FUND

The Committee supports, in principle, the concept of a trust fund

to support democratic reforms in Russia under the leadership of

the Eurasia Foundation. The Committee requests the State Department and USAID to consult with the Committee on the feasibility

of establishing and financing such a fund, which would have a life

span of up to 10 years. The Committee believes that such a trust

fund should support aggressive, cutting edge programs and activities that promote democracy and civil society in Russia.

INDEPENDENT AGENCIES

INTER-AMERICAN FOUNDATION

Appropriations, 2003 ............................................................................. $16,095,000

Budget estimate, 2004 ........................................................................... 15,185,000

Committee recommendation ................................................................. 16,334,000
48

The Committee provides $16,334,000 for the Inter-American

Foundation [IAF]. The Committee again commends the progress

the IAF has made in addressing past management deficiencies.

AFRICAN DEVELOPMENT FOUNDATION

Appropriations, 2003 ............................................................................. $18,568,000

Budget estimate, 2004 ........................................................................... 17,689,000

Committee recommendation ................................................................. 18,689,000

The Committee provides $18,689,000 for the African Development Foundation [ADF]. The Committee commends the work of the

ADF, which provides critical, small-scale support for projects which

benefit some of sub-Saharan Africa’s most impoverished communities.

PEACE CORPS

Appropriations, 2003 ............................................................................. $295,069,000

Budget estimate, 2004 ........................................................................... 359,000,000

Committee recommendation ................................................................. 310,000,000

The Committee continues to support the important mission of the

Peace Corps, and provides $310,000,000, which is $14,931,000

above the fiscal year 2003 enacted level. The Committee also provides authority to apportion $20,000,000 from the GAI account to

the Peace Corps.

The Committee supports efforts to increase the number of Peace

Corps volunteers and expects assistance provided in this Act to provide for the continued expansion of existing programs and initiation of activities in new countries.

The Committee commends the emphasis on safety and security

for all Peace Corps volunteers, and recommends continued vigilance as the war on international terrorism continues.

DEPARTMENT OF STATE

INTERNATIONAL NARCOTICS AND LAW ENFORCEMENT

Appropriations, 2003 ............................................................................. $195,720,000

Emergency supplemental ...................................................................... 25,000,000

Budget estimate, 2004 ........................................................................... 284,550,000

Committee recommendation ................................................................. 284,550,000

The Committee provides $284,550,000 for International Narcotics

and Law Enforcement [INL], which is equal to the budget request,

and $88,830,000 above the fiscal year 2003 enacted level.

TRAFFICKING IN PERSONS

The Committee provides $20,000,000 in INL funds for programs

and activities to counter trafficking in persons. The Committee remains strongly committed to assisting women and children who are

the most innocent victims of this gross human rights violation,

which also contributes to the spread of HIV/AIDS. The Committee

believes that these funds should be used to combat all three components of anti-trafficking: addressing the root causes of trafficking,

protecting and providing services for victims, and prosecuting traffickers.
49

INTERNATIONAL LAW ENFORCEMENT ACADEMIES

The Committee recognizes and supports the important contributions of the International Law Enforcement Academy [ILEA] program to combat crime, corruption, and terrorism abroad. The Committee provides $7,105,000 for ILEA Roswell, New Mexico, which

includes the fiscal year 2004 budget request of $5,000,000 and an

additional $2,105,000 for construction of a new facility. The Committee expects to be consulted within 30 days after enactment of

this Act on the State Department’s plans to provide such assistance

to ILEA Roswell.

ANDEAN COUNTERDRUG INITIATIVE

Appropriations, 2003 ............................................................................. $695,450,000

Emergency supplemental ...................................................................... 34,000,000

Budget estimate, 2004 ........................................................................... 731,000,000

Committee recommendation ................................................................. 660,000,000

The Committee provides $660,000,000 for the Andean

Counterdrug Initiative [ACI], and the authority for the transfer of

up to an additional $37,000,000 from the International Narcotics

Control and Law Enforcement account for the ACI. With this transfer authority, total funding for the ACI is $697,000,000, a slight increase over the fiscal year 2003 enacted level. The Committee provides a total of $250,000,000 for alternative development/institution building programs under the ACI, which shall be apportioned

directly to USAID.

COLOMBIA

The Committee appreciates the commitment of Colombian President Uribe to tackle the threats of terrorism and narcotics in Colombia. The Committee recognizes the significant human and material resources devoted by the Colombian Government to the search

for U.S. citizens taken hostage by Colombian guerillas.

The Committee hopes that under President Uribe’s leadership,

Colombia can make significant progress against guerillas and

paramilitaries that threaten to undermine democracy and the rule

of law.

The Committee continues to strongly support programs that bolster political and legal reforms in Colombia, and that provide alternative development opportunities in remote areas. The Committee

includes $165,000,000 for alternative development/institution building activities for Colombia. Of this amount, not less than

$25,000,000 is made available for judicial reform; not less than

$2,500,000 for the protection of human rights defenders; not less

than $2,500,000 for the U.N. Office of the High Commissioner for

Human Rights in Colombia; not less than $10,000,000 for the Colombian Attorney General’s Human Rights Unit; and not less than

$2,500,000 for the human rights unit of the Colombian

Procuraduria.

The Committee continues certification requirements on aerial fumigation activities, and understands that the program is entering

a new phase that may heighten security risks to spray pilots and

accompanying support aircraft. The Committee understands that

smaller plots of coca and poppy may be sprayed in the future, and
50

that the guerillas may be more aggressive in protecting their illicit

crops. The Committee recommends the State Department and contractors review security guidelines to ensure, to the maximum extent possible, the safety of personnel and equipment during spray

missions. The Committee expresses its condolences to the families

of those who have been killed during missions in Colombia. The

Committee also continues the cap on United States personnel in

Colombia, and the restrictions on United States military personnel

and contractors from participating in combat.

The Committee notes the significant progress made by the Colombian National Police [CNP] in reasserting its presence throughout the countryside. The Committee provides $17,000,000 in the

FMF account for three DC–3 aircraft to increase the CNP’s mobility. The Committee strongly encourages the Colombian Government to consolidate its control in the countryside by providing social and economic services in areas secured by the police or military.

The Committee remains concerned with the lack of reform of the

Colombian Armed Forces, and hopes that the President and the

Minister of Defense will swiftly complete their review of the military and initiate the process of reform. The Committee views the

Colombian military as a particularly weak link in the fight against

terrorism and narcotics, and continues restrictions on assistance to

the military on progress in investigating and prosecuting human

rights abuses and progress by the military in severing links with

paramilitary groups.

The Committee directs that not less than 90 days after enactment of this Act and 90 days thereafter, the Secretary of State

shall submit a report to the Committee, including a classified

annex if necessary, describing: (1) the budgetary impact for fiscal

year 2004 and each fiscal year thereafter for the next 3 fiscal years

of State Department and other relevant agency programs and activities funded pursuant to Plan Colombia and the Andean

Counterdrug Initiative, including the projected cost per year of

maintaining and operating equipment, including aircraft, that the

United States has provided to Colombia; (2) progress, to date, that

the United States has made in turning over management and implementation of Plan Colombia and Andean Counterdrug Initiative

programs and activities from United States personnel or contractors to the Colombian Government; and (3) the exit strategy that

would transfer such programs and activities to the Colombian Government.

NARCOTICS SPILLOVER

The Committee remains concerned with the spillover effect of

narcotics, guns and guerillas to countries bordering Colombia.

Given Constitutional restrictions by some countries to conduct fumigation of illicit crops—and the absence of political will by others

to address the narcotics problem head on—the Committee recommends the State Department prepare a contingency plan to address increases in coca or poppy growth in ACI countries. The Committee is concerned that absent such a plan, the spillover effect will

quickly overwhelm the ability of countries bordering Colombia to

maintain domestic security and stability.
51

VENEZUELA

The Committee is alarmed by reports of cooperation and collusion between Venezuelan authorities and Colombian terrorists. The

Committee includes a provision that restricts assistance to Venezuela, excluding democracy assistance, if the Secretary of State

certifies that Venezuela is assisting, harboring, or providing sanctuary for Colombian terrorist organizations. The Committee provides not less than $5,000,000 for democracy and rule of law assistance for Venezuela.

HOUSING

The Committee is aware of the Ultimate Building Machine

[UBM] system, which has a record of constructing housing in a

number of regions around the world. The Committee notes that

UBM system could be used for a range of purposes, including responding to humanitarian emergencies in the Andean region, and

other nations where appropriate.

MIGRATION AND REFUGEE ASSISTANCE

Appropriations, 2003 ............................................................................. $781,885,000

Budget estimate, 2004 ........................................................................... 760,197,000

Committee recommendation ................................................................. 760,197,000

The Committee provides $760,197,000 for the Migration and Refugee Assistance account, which is equal to the budget request.

RESETTLEMENT IN ISRAEL

The Committee provides not less than $50,000,000 for the resettlement of migrants from the former Soviet Union, Eastern Europe,

and other areas to Israel. The Committee notes that while Israel

has accepted more than 1 million refugees since 1989, over the past

year there has been a modest decline in the number of refugees

from the former Soviet Union resettling in Israel. The Committee

understands that a significant increase in the number of refugees

arriving from Ethiopia is anticipated, and expects funding for these

activities to be sustained in fiscal year 2005 to meet these needs.

CHECHNYA

The Committee condemns and deplores the actions of the Russian Government to force and coerce the return of displaced

Chechen civilians to conflict and combat areas. The Committee recommends the State Department to proactively and publicly engage

the Russian Government to immediately terminate forced returns,

provide additional assistance to those Chechens impacted by Russian efforts to force or coerce returns, and secure accountability for

gross human rights violations—including rape and torture—committed by Russian forces against Chechen civilians.

TIBETAN REFUGEES

Like last year, the Committee supports continued funding to assist Tibetan refugees and recommends not less than $2,000,000 for

this purpose.
52

The Committee notes with concern the situation of Tibetan refugees transiting through Nepal en route to resettlement in India.

The Committee condemns the imprisonment of these refugees—including young children—and requests the relevant authorities in

Nepal to provide safe passage to Tibetans fleeing repression in

their homeland, and to continue to treat these refugees as ‘‘persons

of concern’’.

The Committee deplores the recent decision by the Nepalese Government to forcibly repatriate Tibetan refugees to China, where

they face harsh prison sentences or worse. The Committee has included a provision that limits assistance to the central Government

of Nepal until the Secretary of State certifies that Nepalese authorities are cooperating with the U.N. High Commissioner for Refugees and other international organizations on issues concerning

the protecting of refugees from Tibet.

REFUGEES AND INTERNALLY DISPLACED PERSONS IN AFRICA

The Committee notes the dire situation of millions of refugees

and IDPs throughout Africa living in deplorable conditions. The

Committee urges the administration to work with international organizations, including the World Food Program and UNHCR, as

well as other governments to provide additional assistance to the

region in fiscal year 2003.

EMERGENCY REFUGEE AND MIGRATION ASSISTANCE FUND

Appropriations, 2003 ............................................................................. $25,831,000

Emergency supplemental ...................................................................... 80,000,000

Budget estimate, 2004 ........................................................................... 40,000,000

Committee recommendation ................................................................. 40,000,000

The Committee provides $40,000,000 for the Emergency Refugee

and Migration Assistance fund. The Committee notes that an additional $40,000,000 was provided for this account in the emergency

supplemental to meet unforeseen emergency needs.

NONPROLIFERATION, ANTI-TERRORISM, DEMINING, AND RELATED

PROGRAMS

Appropriations, 2003 ............................................................................. $304,408,000

Emergency supplemental ...................................................................... 28,000,000

Budget estimate, 2004 ........................................................................... 385,200,000

Committee recommendation ................................................................. 385,200,000

The Committee provides $385,200,000 for the Nonproliferation,

Anti-terrorism, Demining, and Related Programs [NADR] account,

and an additional $15,000,000 by transfer from the Foreign Military Financing account. The Committee continues its strong support for these programs which are critical to efforts by the United

States to combat the proliferation of weapons of mass destruction,

prevent and respond to international terrorism, and help improve

border security. The Committee provides the following funding levels to the NADR accounts listed below:

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

Export Control/Related Border Security ................................................................................................................ 40,000,000

Science Centers/Bio-Redirection .......................................................................................................................... 59,000,000

IAEA Voluntary Contribution ................................................................................................................................. 53,000,000

International Monitoring System (CTBT) .............................................................................................................. 19,300,000
53

Anti-Terrorism Assistance .................................................................................................................................... 106,400,000

Terrorist Interdiction Program .............................................................................................................................. 11,000,000

CT Engagement .................................................................................................................................................... 2,500,000

Humanitarian Demining Program ........................................................................................................................ 50,000,000

International Trust Fund ...................................................................................................................................... 10,000,000

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

ANTI-TERRORISM ASSISTANCE

The Committee directs the State Department to utilize to the

fullest extent practicable the facilities of the U.S. Army’s Aberdeen

Proving Grounds, the New Mexico Institute of Mining and Technology in Socorro, New Mexico, Louisiana State University and the

Louisiana State Police facilities in Baton Rouge, Louisiana, in carrying out the ATA program.

SMALL ARMS AND LIGHT WEAPONS

The Committee supports the administration’s efforts to destroy

stockpiles of small arms and light weapons [SA/LW] that would

otherwise threaten United States forces and undermine development efforts around the world. As large caches of weapons have

been discovered in Iraq, and the SA/LW program is expanding its

efforts to target man-portable air defense systems, the Committee

provides $4,000,000 for this program.

TERRORIST INTERDICTION PROGRAM

The Committee supports the Terrorist Interdiction Program, but

is concerned with the management structure of the program. The

Committee directs the State Department to submit a report not

later than 60 days after enactment of this Act describing in detail

the management structure of the program, including the role of

contractors and the level of active participation by the Office of the

Coordinator for Counterterrorism. The report may be submitted in

classified form, if necessary. The Committee expects the State Department to consult on the form that this report will take.

COMPREHENSIVE NUCLEAR TEST BAN TREATY COMMISSION

The Committee supports the fiscal year 2004 request for a

United States contribution to the Comprehensive Nuclear Test Ban

Treaty Preparatory Commission [CTBT], and includes a provision

that requires that any funding, which is made available for the

CTBT but not used for that purpose, to be transferred to the International Atomic Energy Agency.

INTERNATIONAL ATOMIC ENERGY AGENCY

The Committee supports the work of the International Atomic

Energy Agency [IAEA] to promote nuclear safety, protect the environment, and curb the proliferation of nuclear weapons technology.

The Committee supports the administration’s efforts to increase

funding for IAEA’s Safeguards System, but recognizes that negotiations on this issue could take time. In the interim, the Committee

believes it is critical, especially in light of recent developments in

Iran, that the IAEA receive adequate funding from the United

States and other donors. The Committee, therefore, provides
54

$53,000,000 for a voluntary contribution to the IAEA, which is

$3,000,000 above the budget request.

NUCLEAR SAFETY

The Committee recommends the State Department consider providing up to $5,000,000 for the Idaho National Engineering and

Environmental Laboratory to support the efforts of the Republic of

Poland to mitigate chemical contamination, improve safeguards for

storage of nuclear materials and enhance radiological detection capabilities.

HUMANITARIAN DEMINING

The Committee supports the State Department’s Humanitarian

Demining Program to clear landmines and other unexploded ordnance that continue to endanger people in over 60 countries. The

Committee provides $60,000,000 for these activities. Of this

amount, funds may be made available for the International Trust

Fund, on a dollar-for-dollar matching basis.

The Committee notes that the State Department has developed

public-private partnerships with nongovernmental organizations,

foundations, and private companies, in support of mine action activities. To enhance the effectiveness of these public-private partnerships, the Committee provides the State Department with authority to enter into grants and cooperative agreements. To the

maximum extent feasible, grants and cooperative agreements

should be used to support mine action activities of nongovernmental organizations. The State Department is to implement this

authority in compliance with all statutory and regulatory guidelines governing grants and cooperative agreements.

The Committee notes that several country recipients of demining

funds from the NADR account also receive large amounts of assistance from the ESF, SEED, or FSU accounts. The Committee is concerned about pressures on the NADR budget which contains a limited amount of humanitarian demining funds, and believes that

demining programs in these countries should be funded jointly

from both NADR and these other accounts.

DEPARTMENT OF THE TREASURY

INTERNATIONAL AFFAIRS TECHNICAL TRAINING

Appropriations, 2003 ............................................................................. $10,730,000

Budget estimate, 2004 ........................................................................... 14,000,000

Committee recommendation ................................................................. 12,000,000

The Committee supports the Department of the Treasury’s International Affairs Technical Assistance program and provides

$12,000,000 for fiscal year 2004.

DEBT RESTRUCTURING

Appropriations, 2003 ............................................................................. ...........................

Budget estimate, 2004 ........................................................................... $395,000,000

Committee recommendation ................................................................. 195,000,000

The Committee provides a total of $195,000,000 for debt restructuring, of which $75,000,000 is for the Heavily Indebted Poor Coun-
55

tries [HIPC] Trust Fund, $100,000,000 is to fund bilateral debt reduction for the Democratic Republic of Congo [DROC] under the

HIPC initiative, and $20,000,000 is for the Treasury Debt Restructuring account for debt reduction under the Tropic Forest Conservation Act.

The Committee notes the progress toward the formation of a new

government in the DROC, and recognizes that significant challenges remain in efforts to improve the lives of the Congolese people. The Committee supports debt relief to the DROC, but has

adopted a measured approach. While $100,000,000 is provided for

this purpose, the balance of funds in the budget request is distributed to a number of accounts (including Child Survival and Health

Programs Fund and Development Assistance) that will more immediately address pressing needs in Africa. The Committee supports

additional debt relief for the DROC in future Foreign Operations

Appropriations acts.
(56)

TITLE III

MILLENNIUM CHALLENGE ASSISTANCE

FUNDS APPROPRIATED TO THE PRESIDENT

MILLENNIUM CHALLENGE ASSISTANCE

Appropriations, 2003 ............................................................................. ...........................

Budget estimate, 2004 ........................................................................... $1,300,000,000

Committee recommendation ................................................................. 1,000,000,000

The Committee provides $1,000,000,000 for Millennium Chal- lenge Assistance, which is $300,000,000 below the fiscal year 2004

request.

The Committee fully supports the concept and intentions of this

new initiative, and has included language in the Act that broadly

authorizes the establishment of the program. However, the Committee expects authorizing language for this program to be considered and acted upon by Congress prior to enactment of this Act.
(57)

TITLE IV

MILITARY ASSISTANCE

FUNDS APPROPRIATED TO THE PRESIDENT

INTERNATIONAL MILITARY EDUCATION AND TRAINING

Appropriations, 2003 ............................................................................. $79,480,000

Budget estimate, 2004 ........................................................................... 91,700,000

Committee recommendation ................................................................. 91,700,000

The Committee continues its strong support for the International

Military Education and Training [IMET] program and provides

$91,700,000 for this account. This is $12,220,000 above the fiscal

year 2003 allocation.

The Committee notes that Public Law 108–7 includes a provision

that requires the administration to submit a report to Congress on

progress toward improving the performance evaluation procedures

for the IMET program and implementing section 548 of the Foreign

Assistance Act. The Committee commends the State Department’s

Bureau of Political Military Affairs and the Defense Security and

Cooperation Agency for consulting on the scope and content of the

report. While the Committee believes that the number of people

trained under IMET is one important element in measuring the

success of the program, other factors—such as the effect that sustained IMET assistance is having on professionalizing a foreign

military, ensuring respect for civilian authority and the rule of law,

and improving interoperability with United States forces—should

also be considered.

The Committee commends the administration for issuing new

guidance for the implementation of the Informational Program [IP],

and believes that, while this is a good first step, more needs to be

done to ensure that the IP is implemented in a manner the maximizes the goals of the IMET program. The Committee requests the

Secretary of State to submit a report not later than 120 days after

enactment of this Act on the status of the IP guidance and the impact this has had on making the IP program more consistent with

the goals of the IMET program.

FOREIGN MILITARY FINANCING

GRANT PROGRAM LEVEL

Appropriations, 2003 ............................................................................. $4,045,532,000

Emergency supplemental ...................................................................... 2,059,100,000

Budget estimate, 2004 ........................................................................... 4,414,000,000

Committee recommendation ................................................................. 4,384,000,000

The Committee provides $4,384,000,000 in Foreign Military Financing grant programs for fiscal year 2004, which is $338,468,000

above the fiscal year 2003 enacted level.
58

LIMITATION ON ASSISTANCE TO SECURITY FORCES

The Committee commends the State Department, particularly

the Bureaus of Political-Military Affairs and Democracy, Human

Rights, and Labor, for issuing a new cable on implementation of

the ‘‘Leahy Amendments’’ (section 553 of Public Law 108–7 and

section 8080 of Public Law 107–248). The Committee notes that

this cable requires personnel posted at U.S. embassies to be more

proactive in investigating and reporting on allegations of human

rights violations by foreign security forces. This is consistent with

what the Committee has urged in the past. The Committee requests the State Department to inform Congress if additional resources are needed to effectively implement this and other directives in the cable.

MIDDLE EAST COUNTRIES

The Committee provides the administration’s request of

$2,160,000,000, for Israel $1,300,000,000 for Egypt, and

$206,000,000 for Jordan.

OPERATION IRAQI FREEDOM

The Committee notes with the appreciation the support of numerous nations in the liberation of Iraq, including Albania, El Salvador, Macedonia, Mongolia, the Democratic Republic of TimorLeste, and Uganda. The Committee recommends increased FMF

support for these countries, specifically not less than $6,500,000 for

Albania and $12,000,000 for Macedonia.

THE PHILIPPINES

The Committee notes with appreciation the cooperation between

the United States and the Philippines to counter terrorism, and

recommends $20,000,000 in FMF for the Philippines, which reflects

a modest increase above the budget request. The Committee also

supports full funding of the budget request for IMET assistance for

the Philippines.

The Committee urges the administration to support a Comprehensive Security Review of the Philippine military, which will

assist in determining how the United States can best support modernization and reform. The Committee also supports increasing the

mobility of the Philippine military.

ROMANIA

The Committee appreciates the steps Romania has taken to support common security interests, including in Iraq. As Romania prepares to join NATO, the Committee encourages the administration

to provide additional assistance in order to strengthen military,

economic, and political ties to that country.

TUNISIA

The Committee supports the administration’s request of

$10,000,000 in FMF and $1,750,000 in IMET assistance for Tunisia.
59

ORDNANCE DISPOSAL

The Committee is concerned that FMF funds were used to pay

costs related to the training of Panamanian personnel to disarm

and dispose of World War II munitions at a former United States

military testing facility on San Jose Island, Panama. The Committee does not believe that FMF funds should be used for the

clearance of unexploded ordnance at such facilities, and has included a provision to this effect.

PEACEKEEPING OPERATIONS

Appropriations, 2003 ............................................................................. $114,252,000

Emergency supplemental ...................................................................... 100,000,000

Budget estimate, 2004 ........................................................................... 94,900,000

Committee recommendation ................................................................. 84,900,000

The Committee provides $84,900,000 for Peacekeeping Operations, which is $10,000,000 below the budget request. The Committee is concerned about maintaining adequate funding for peacekeeping operations in Africa, and recommends full funding of the

budget request for these programs.
(60)

TITLE V

MULTILATERAL ECONOMIC ASSISTANCE

INTERNATIONAL FINANCIAL INSTITUTIONS SUMMARY

Appropriations, 2003 ............................................................................. $1,295,781,000

Budget estimate, 2004 ........................................................................... 1,554,878,000

Committee recommendation ................................................................. 1,499,000,000

The Committee recommends the total amount of paid-in capital

funding shown above to provide for contributions to the International Development Association, Multilateral Investment Guarantee Agency, the Global Environment Facility [GEF], the InterAmerican Development Bank’s Inter-American Investment Corporation and Multilateral Investment Fund, the Asian Development Fund, the African Development Bank and Fund, the European Bank for Reconstruction and Development, and the International Fund for Agriculture Development.

Oversight.—The Committee is concerned with reports of the misuse of funds and insufficient oversight at the multilateral development banks, and has therefore included a provision which requires

the Secretary of the Treasury to ensure that these institutions are

implementing regular, independent, external audits of their internal management controls and procedures for meeting operational

objectives, complying with Bank policies, and preventing fraud, and

making reports describing the scope and findings of such audits

available to the public on at least an annual basis. In addition, to

ensure transparency and accountability, the Secretary is to ensure

that, at least 45 days prior to consideration by the board of directors of the institution, proposed loans, credits, or grant agreements

have been published and include the resources and conditionality

necessary to ensure that the borrower complies with applicable

laws. Finally, due to concerns about the treatment of and retaliation against whistle blowers, the Secretary is to ensure that these

institutions are implementing effective procedures, consistent with

those in United States and international law, for the receipt, retention, and treatment of complaints regarding fraud, accounting, mismanagement, internal accounting controls, or auditing matters and

of the confidential, anonymous submission by employees of concerns regarding fraud, accounting, mismanagement, internal accounting controls, or auditing matters.

World Bank.—While the Committee appreciates the myriad programs administered by the World Bank, it notes that absent the

political will to hold foreign governments accountable for their actions, investments in development and monitoring activities are directly undermined. The Committee regrets the failure of the World

Bank to adequately support forestry monitor Global Witness prior

to its termination by the Government of Cambodia.
61

The Committee reiterates its concerns with the World Bank’s efforts to reform internal grievance procedures, and will continue to

closely follow this matter.

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

GLOBAL ENVIRONMENT FACILITY

Appropriations, 2003 ............................................................................. $146,852,000

Budget estimate, 2004 ........................................................................... 184,997,000

Committee recommendation ................................................................. 170,997,000

INTERNATIONAL DEVELOPMENT ASSOCIATION

Appropriations, 2003 ............................................................................. $844,475,000

Budget estimate, 2004 ........................................................................... 976,825,000

Committee recommendation ................................................................. 976,825,000

MULTILATERAL INVESTMENT GUARANTEE AGENCY

Appropriations, 2003 ............................................................................. $1,620,000

Budget estimate, 2004 ........................................................................... 4,002,000

Committee recommendation ................................................................. 1,124,000

INTER-AMERICAN DEVELOPMENT BANK

INTER-AMERICAN INVESTMENT CORPORATION

Appropriations, 2003 ............................................................................. $18,233,000

Budget estimate, 2004 ........................................................................... 30,898,000

Committee recommendation ................................................................. 8,898,000

MULTILATERAL INVESTMENT FUND

Appropriations, 2003 ............................................................................. $24,431,000

Budget estimate, 2004 ........................................................................... 32,614,000

Committee recommendation ................................................................. 30,614,000

ASIAN DEVELOPMENT BANK

ASIAN DEVELOPMENT FUND

Appropriations, 2003 ............................................................................. $97,250,000

Budget estimate, 2004 ........................................................................... 151,921,000

Committee recommendation ................................................................. 136,921,000

AFRICAN DEVELOPMENT BANK

Appropriations, 2003 ............................................................................. $5,071,000

Budget estimate, 2004 ........................................................................... 5,105,000

Committee recommendation ................................................................. 5,105,000

AFRICAN DEVELOPMENT FUND

Appropriations, 2003 ............................................................................. $107,371,000

Budget estimate, 2004 ........................................................................... 118,081,000

Committee recommendation ................................................................. 118,081,000

EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT

Appropriations, 2003 ............................................................................. $35,572,000

Budget estimate, 2004 ........................................................................... 35,431,000

Committee recommendation ................................................................. 35,431,000
62

INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT

Appropriations, 2003 ............................................................................. $14,906,000

Budget estimate, 2004 ........................................................................... 15,004,000

Committee recommendation ................................................................. 15,004,000

INTERNATIONAL ORGANIZATIONS AND PROGRAMS

Appropriations, 2003 ............................................................................. $193,882,000

Budget estimate, 2004 ........................................................................... 314,550,000

Committee recommendation ................................................................. 314,550,000

The Committee provides $314,550,000 for the ‘‘International Organizations and Programs’’ account. This amount is $120,668,000

above the fiscal year 2003 level.

WORLD FOOD PROGRAM

Like last year, the Committee provides $6,000,000 for the World

Food Program [WFP] from International Disaster Assistance funds

managed by USAID’s Bureau for Democracy, Conflict, and Humanitarian Assistance under section 634 of this Act.

The Committee commends the WFP’s work to combat global hunger. The Committee continues to be alarmed with famine in subSaharan Africa, where a number of factors (including drought,

HIV/AIDS, conflict and failed government policies) have placed

more than 40,000,000 people at risk of starvation. An additional

100,000,000 people are malnourished. While additional emergency

food aid is needed, the Committee believes it must be complemented with strategies to address long-term development needs

in the region, such as health care, water, education, and agricultural production.

UNITED NATIONS CHILDREN’S FUND

The Committee supports efforts to reach the child survival goals

set by the World Summit for Children, the Millennium Development Goals, and the 2002 U.N. Special Session on Children. The

United Nations Children’s Fund [UNICEF] is an essential partner

of the United States in achieving these goals. The Committee endorses the budget request of $120,000,000 for UNICEF from this

account, but notes that this should not preclude USAID from providing additional funding for specific UNICEF projects as may be

appropriate.

UN-HABITAT

The Committee supports the efforts of the U.N. Center for

Human Settlements [UN–HABITAT] to improve the lives of slum

dwellers and ameliorate urban problems around the world, and

provides $1,000,000 for a contribution to UN-HABITAT.
(63)

TITLE VI

GENERAL PROVISIONS

SEC. 601. Obligations During Last Month of Availability.

SEC. 602. Private and Voluntary Organizations.

SEC. 603. Limitation on Residence Expenses.

SEC. 604. Limitation on Expenses.

SEC. 605. Limitation on Representational Allowances.

SEC. 606. Prohibition on Financing Nuclear Goods.

SEC. 607. Prohibition Against Direct Funding for Certain Countries.

SEC. 608. Military Coups.

SEC. 609. Transfers.

SEC. 610. Deobligation/Reobligation Authority.

SEC. 611. Availability of Funds.

SEC. 612. Limitation on Assistance to Countries in Default.

SEC. 613. Commerce and Trade.

SEC. 614. Surplus Commodities.

SEC. 615. Notification Requirements.

SEC. 616. Limitation on Availability of Funds for International

Organizations and Programs.

SEC. 617. Independent States of the Former Soviet Union.

SEC. 618. Prohibition on Funding for Abortions and Involuntary

Sterilization.

SEC. 619. Export Financing Transfer Authorities.

SEC. 620. Special Notification Requirements.

SEC. 621. Definition of Program, Project, and Activity.

SEC. 622. Child Survival and Health Activities.

SEC. 623. Afghanistan.

SEC. 624. Notification on Excess Defense Equipment.

SEC. 625. Authorization Requirement.

SEC. 626. Democracy Programs.

SEC. 627. Prohibition on Bilateral Assistance to Terrorist Countries.

SEC. 628. Debt-For-Development.

SEC. 629. Separate Accounts.

SEC. 630. Compensation for United States Executive Directors to

International Financial Institutions.

SEC. 631. Discrimination Against Minority Religious Faiths in

the Russian Federation.

SEC. 632. Authorities for the Peace Corps, Inter-American Foundation and African Development Foundation.

SEC. 633. Impact on Jobs in the United States.

SEC. 634. Special Authorities.

SEC. 635. Arab League Boycott of Israel.

SEC. 636. Administration of Justice Activities.

SEC. 637. Eligibility for Assistance.
64

SEC. 638. Earmarks.

SEC. 639. Ceilings and Earmarks.

SEC. 640. Prohibition on Publicity or Propaganda.

SEC. 641. Prohibition of Payments to United Nations Members.

SEC. 642. Nongovernmental Organizations—Documentation.

SEC. 643. Prohibition on Assistance to Foreign Governments that

Export Lethal Military Equipment to Countries Supporting International Terrorism.

SEC. 644. Withholdings of Assistance for Parking Fines Owed by

Foreign Countries.

SEC. 645. Limitation on Assistance for the PLO for the West

Bank and Gaza.

SEC. 646. War Crimes Tribunal Drawdown.

SEC. 647. Landmines.

SEC. 648. Restrictions Concerning the Palestinian Authority.

SEC. 649. Prohibition of Payment of Certain Expenses.

SEC. 650. Tibet.

SEC. 651. Haiti.

SEC. 652. Limitation on Assistance to the Palestinian Authority.

SEC. 653. Limitation on Assistance to Security Forces.

SEC. 654. Environment Programs.

SEC. 655. Regional Programs for East Asia and the Pacific.

SEC. 656. Zimbabwe.

SEC. 657. Nigeria.

SEC. 658. Burma.

SEC. 659. Enterprise Fund Restrictions.

SEC. 660. Cambodia.

SEC. 661. Foreign Military Training Report.

SEC. 662. Enterprise Fund in the Middle East Region.

SEC. 663. Palestinian Statehood.

SEC. 664. Colombia.

SEC. 665. Illegal Armed Groups.

SEC. 666. Prohibition on Assistance to the Palestinian Broadcasting Corporation.

SEC. 667. Iraq.

SEC. 668. West Bank and Gaza Program.

SEC. 669. Indonesia.

SEC. 670. Restrictions on Assistance to Governments Destabilizing West Africa.

SEC. 671. Special Debt Relief for the Poorest.

SEC. 672. Authority to Engage in Debt Buybacks or Sales.

SEC. 673. Contributions to United Nations Population Fund.

SEC. 674. Central Asia.

SEC. 675. Commercial Leasing of Defense Articles.

SEC. 676. War Criminals.

SEC. 677. User Fees.

SEC. 678. Funding for Serbia.

SEC. 679. Multilateral Development Bank Accountability.

SEC. 680. Cooperation with Cuba on Counter-Narcotics Matters.

SEC. 681. Community-Based Police Assistance.

SEC. 682. Overseas Private Investment Corporation and ExportImport Bank Restrictions.

SEC. 683. American Churchwomen and Other Citizens in El Salvador and Guatemala.
65

SEC. 684. Conflict Resolution.

SEC. 685. Nicaragua.

SEC. 686. Report on International Coffee Crisis.

SEC. 687. Venezuela.

SEC. 688. Disability Access.

SEC. 689. Thailand.

SEC. 690. Modification on Reporting Requirements.

SEC. 691. Assistance for Foreign Nongovernmental Organizations.
(66)

COMPLIANCE WITH PARAGRAPH 7, RULE XVI OF THE

STANDING RULES OF THE SENATE

Rule XVI, paragraph 7 requires that every report on a general

appropriation bill filed by the Committee must identify each recommended amendment, with particularity, which proposes an item

of appropriation which is not made to carry out the provisions of

an existing law, a treaty stipulation, or an act or resolution previously passed by the Senate during that session.

Items providing funding for fiscal year 2004 which lack authorization are as follows:

Amount

Child Survival and Health Programs Fund ...................................................................................................... $1,435,500,000

Development Assistance .................................................................................................................................. 1,423,000,000

International Disaster Assistance .................................................................................................................... 235,500,000

Famine Fund .................................................................................................................................................... 100,000,000

Transition Initiatives ........................................................................................................................................ 55,000,000

Development Credit Authority .......................................................................................................................... 8,000,000

USAID Operating Expenses ............................................................................................................................... 604,100,000

USAID Operating Expenses, Office of Inspector General ................................................................................. 35,000,000

USAID Capital Investment Fund ...................................................................................................................... 100,000,000

Economic Support Fund ................................................................................................................................... 2,415,000,000

Global AIDS Initiative ....................................................................................................................................... 700,000,000

Assistance for Eastern Europe and the Baltics .............................................................................................. 445,000,000

Assistance for the Independent States of the Former Soviet Union ............................................................... 596,000,000

Inter-American Foundation ............................................................................................................................... 16,334,000

African Development Foundation ..................................................................................................................... 18,689,000

Peace Corps ..................................................................................................................................................... 310,000,000

International Narcotics Control and Law Enforcement ................................................................................... 284,500,000

Migration and Refugee Assistance .................................................................................................................. 760,197,000

Emergency Migration and Refugee Assistance. .............................................................................................. 40,000,000

Nonproliferation, Anti-Terrorism, Demining and Related Assistance .............................................................. 385,200,000

Treasury Technical Assistance ......................................................................................................................... 12,000,000

Debt Restructuring ........................................................................................................................................... 195,000,000

Millennium Challenge ...................................................................................................................................... 1,000,000,000

International Military Education and Training ................................................................................................ 91,700,000

Foreign Military Financing Program ................................................................................................................. 4,384,000,000

Peacekeeping Operations ................................................................................................................................. 84,900,000

International Organizations and Programs ...................................................................................................... 314,550,000

International Development Association ............................................................................................................ 976,825,000

Asian Development Fund ................................................................................................................................. 136,921,000

African Development Fund ............................................................................................................................... 118,081,000

COMPLIANCE WITH PARAGRAPH 7(C), RULE XXVI, OF THE

STANDING RULES OF THE SENATE

Pursuant to paragraph 7(c) of rule XXVI, on July 17, 2003, the

Committee ordered reported en bloc: S. 1427, an original bill making appropriations for Agriculture, Rural Development, Food and

Drug Administration, and Related Agencies programs for the fiscal

year ending September 30, 2004; S. 1424, an original bill making

appropriations for Energy and Water Development for the fiscal

year ending September 30, 2004; and S. 1426, an original bill mak-
67

ing appropriations for Foreign Operations, Export Financing, and

related programs for the fiscal year ending September 30, 2004;

each subject to amendment and each subject to the budget allocations, by a recorded vote of 29–0, a quorum being present. The vote

was as follows:

Yeas Nays

Chairman Stevens

Mr. Cochran

Mr. Specter

Mr. Domenici

Mr. Bond

Mr. McConnell

Mr. Burns

Mr. Shelby

Mr. Gregg

Mr. Bennett

Mr. Campbell

Mr. Craig

Mrs. Hutchison

Mr. DeWine

Mr. Brownback

Mr. Byrd

Mr. Inouye

Mr. Hollings

Mr. Leahy

Mr. Harkin

Ms. Mikulski

Mr. Reid

Mr. Kohl

Mrs. Murray

Mr. Dorgan

Mrs. Feinstein

Mr. Durbin

Mr. Johnson

Ms. Landrieu

COMPLIANCE WITH PARAGRAPH 12, RULE XXVI OF THE

STANDING RULES OF THE SENATE

Paragraph 12 of rule XXVI requires that Committee report on a

bill or joint resolution repealing or amending any statute or part

of any statute include ‘‘(a) the text of the statute or part thereof

which is proposed to be repealed; and (b) a comparative print of

that part of the bill or joint resolution making the amendment and

of the statute or part thereof proposed to be amended, showing by

stricken-through type and italics, parallel columns, or other appropriate typographical devices the omissions and insertions which

would be made by the bill or joint resolution if enacted in the form

recommended by the committee.’’

In compliance with this rule, the following changes in existing

law proposed to be made by the bill are shown as follows: existing

law to be omitted is enclosed in black brackets, new matter is

printed in italic, and existing law in which no change is proposed

is shown in roman.
68

With respect to this bill, it is the opinion of the Committee that

it is necessary to dispense with these requirements in order to expedite the business of the Senate.

BUDGETARY IMPACT OF BILL

PREPARED IN CONSULTATION WITH THE CONGRESSIONAL BUDGET OFFICE PURSUANT TO SEC.

308(a), PUBLIC LAW 93–344, AS AMENDED

[In millions of dollars]

Budget authority Outlays

Committee

allocation 1

Amount

of bill

Committee

allocation 1

Amount

of bill

Comparison of amounts in the bill with Committee allocations

to its subcommittees of amounts in the Budget Resolution

for 2004: Subcommittee on Foreign Operations:

Discretionary ........................................................................ 18,093 18,093 20,303 1 20,294

Mandatory ............................................................................ 44 44 44 1 44

Projection of outlays associated with the recommendation:

2004 ..................................................................................... .................... .................... .................... 2 6,534

2005 ..................................................................................... .................... .................... .................... 6,311

2006 ..................................................................................... .................... .................... .................... 2,553

2007 ..................................................................................... .................... .................... .................... 1,411

2008 and future years ........................................................ .................... .................... .................... 1,148

Financial assistance to State and local governments for

2004 ......................................................................................... NA .................... NA ....................

1 Includes outlays from prior-year budget authority.

2 Excludes outlays from prior-year budget authority.

NA: Not applicable.
69

COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2003 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL

FOR FISCAL YEAR 2004

[In thousands of dollars]

Item 2003 appropriation Budget estimate Committee rec- ommendation

Senate Committee recommendation compared with (∂ or ¥)

2003 appropriation Budget estimate

TITLE I—EXPORT AND INVESTMENT ASSISTANCE

EXPORT-IMPORT BANK OF THE UNITED STATES

Subsidy appropriation ................................................................................................................................................ 509,566 ............................ ............................ ¥509,566 ............................Administrative expenses ............................................................................................................................................. 67,856 75,395 74,395 ∂6,539 ¥1,000Inspector General ....................................................................................................................................................... ............................ 1,200 1,000 ∂1,000 ¥200Negative subsidy ........................................................................................................................................................ ¥13,000 ¥34,000 ¥34,000 ¥21,000 ............................

Total, Export-Import Bank of the United States .......................................................................................... 564,422 42,595 41,395 ¥523,027 ¥1,200

OVERSEAS PRIVATE INVESTMENT CORPORATION

Noncredit account:

Administrative expenses .................................................................................................................................... 39,626 42,385 41,385 ∂1,759 ¥1,000Insurance fees and other offsetting collections ............................................................................................... ¥306,000 ¥272,000 ¥272,000 ∂34,000 ............................

Subsidy appropriation ................................................................................................................................................ 23,844 24,000 24,000 ∂156 ............................

Total, Overseas Private Investment Corporation .......................................................................................... ¥242,530 ¥205,615 ¥206,615 ∂35,915 ¥1,000

FUNDS APPROPRIATED TO THE PRESIDENT

Trade and development agency ................................................................................................................................. 46,706 60,000 50,000 ∂3,294 ¥10,000

Total, title I, Export and investment assistance .......................................................................................... 368,598 ¥103,020 ¥115,220 ¥483,818 ¥12,200

TITLE II—BILATERAL ECONOMIC ASSISTANCE

FUNDS APPROPRIATED TO THE PRESIDENT

United States Agency for International Development

Child survival and health programs fund ................................................................................................................. 1,824,563 1,495,000 1,435,500 ¥389,063 ¥59,500

UNICEF ............................................................................................................................................................... (120,000) ............................ ............................ (¥120,000) ............................(Transfer out) .................................................................................................................................................... (¥5,961) ............................ (¥6,000) (¥39) (¥6,000)
70

COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2003 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL

FOR FISCAL YEAR 2004—Continued

[In thousands of dollars]

Item 2003 appropriation Budget estimate Committee rec- ommendation

Senate Committee recommendation compared with (∂ or ¥)

2003 appropriation Budget estimate

Emergency supplemental (Public Law 108–11) ............................................................................................... 90,000 ............................ ............................ ¥90,000 ............................

Global AIDS initiative ................................................................................................................................................. ............................ 450,000 700,000 ∂700,000 ∂250,000

(Transfer out) .................................................................................................................................................... ............................ ............................ (¥20,000) (¥20,000) (¥20,000)

Development assistance ............................................................................................................................................. 1,379,972 1,345,000 1,423,000 ∂43,028 ∂78,000

(Transfer out) .................................................................................................................................................... ............................ (¥21,000) (¥21,000) (¥21,000) ............................

International disaster assistance .............................................................................................................................. 288,115 235,500 235,500 ¥52,615 ............................

Emergency supplemental (Public Law 108–11) ............................................................................................... 143,800 ............................ ............................ ¥143,800 ............................

Famine fund ............................................................................................................................................................... ............................ 200,000 100,000 ∂100,000 ¥100,000Transition Initiatives .................................................................................................................................................. 49,675 55,000 55,000 ∂5,325 ............................Development Credit Program:

(By transfer) ...................................................................................................................................................... ............................ (21,000) (21,000) (∂21,000) ............................Administrative expenses .................................................................................................................................... 7,542 8,000 8,000 ∂458 ............................

Subtotal, development assistance ................................................................................................................ 3,783,667 3,788,500 3,957,000 ∂173,333 ∂168,500

Payment to the Foreign Service Retirement and Disability Fund ............................................................................. 45,200 43,859 43,859 ¥1,341 ............................Operating expenses of the U.S. Agency for International Development .................................................................... 568,282 604,100 604,100 ∂35,818 ............................

Emergency supplemental (Public Law 108–11) ............................................................................................... 24,500 ............................ ............................ ¥24,500 ............................(By transfer) ...................................................................................................................................................... (5,961) ............................ (6,000) (∂39) (∂6,000)Emergency supplemental (Public Law 108–11) (Transfer to U.S. AID Office of Inspector General) .............. (¥3,500) ............................ ............................ (∂3,500) ............................

Capital Investment Fund ............................................................................................................................................ 42,721 146,300 100,000 ∂57,279 ¥46,300Operating expenses of the U.S. Agency for International Development Office of Inspector General ....................... 33,084 35,000 35,000 ∂1,916 ............................

Emergency supplemental (Public Law 108–11) (By transfer) ......................................................................... (3,500) ............................ ............................ (¥3,500) ............................

Total, U.S. Agency for International Development ........................................................................................ 4,497,454 4,617,759 4,739,959 ∂242,505 ∂122,200

Other Bilateral Economic Assistance

Economic support fund:

Camp David countries ....................................................................................................................................... 1,207,102 1,055,000 1,055,000 ¥152,102 ............................Other .................................................................................................................................................................. 1,048,142 1,480,000 1,360,000 ∂311,858 ¥120,000Economic support fund (Public Law 108–11) .................................................................................................. 2,422,000 ............................ ............................ ¥2,422,000 ............................
71

Pakistan debt relief ........................................................................................................................................... ............................ ............................ ............................ ............................ ............................Loan guarantees to Egypt: (Limitation on guaranteed loans) (Public Law 108–11) ...................................... (2,000,000) ............................ ............................ (¥2,000,000) ............................Loan guarantees to Turkey: (Limitation on guaranteed loans) (Public Law 108–11) ..................................... (8,500,000) ............................ ............................ (¥8,500,000) ............................

Subtotal, Economic support fund ........................................................................................................ 4,677,244 2,535,000 2,415,000 ¥2,262,244 ¥120,000

International Fund for Ireland .................................................................................................................................... 24,837 ............................ ............................ ¥24,837 ............................Assistance for Eastern Europe and the Baltic States ............................................................................................... 521,587 435,000 445,000 ¥76,587 ∂10,000Assistance for the Independent States of the former Soviet Union ......................................................................... 755,060 576,000 596,000 ¥159,060 ∂20,000U.S. emergency fund for complex international crises .............................................................................................. ............................ 100,000 ............................ ............................ ¥100,000Iraq relief and reconstruction fund (Public Law 108–11) ........................................................................................ 2,475,000 ............................ ............................ ¥2,475,000 ............................

(Transfer authority) (Public Law 108–11) ........................................................................................................ (200,000) ............................ ............................ (¥200,000) ............................

Loan guarantees to Israel: (Limitation on guaranteed loans) (Public Law 108–11) ............................................... (9,000,000) ............................ ............................ (¥9,000,000) ............................

Total, Other Bilateral Economic Assistance ................................................................................................. 8,453,728 3,646,000 3,456,000 ¥4,997,728 ¥190,000

INDEPENDENT AGENCIES

Inter-American Foundation

Appropriation .............................................................................................................................................................. 16,095 15,185 16,334 ∂239 ∂1,149

African Development Foundation

Appropriation .............................................................................................................................................................. 18,568 17,689 18,689 ∂121 ∂1,000

Peace Corps

Appropriation .............................................................................................................................................................. 295,069 359,000 310,000 ∂14,931 ¥49,000

(By transfer) ...................................................................................................................................................... ............................ ............................ (20,000) (∂20,000) (∂20,000)

Millenium Challenge Corporation

Appropriation .............................................................................................................................................................. ............................ 1,300,000 1,000,000 ∂1,000,000 ¥300,000

Department of State

International narcotics control and law enforcement ............................................................................................... 195,720 284,550 284,550 ∂88,830 ............................

(Transfer out) .................................................................................................................................................... ............................ ............................ (¥37,000) (¥37,000) (¥37,000)Emergency supplemental (Public Law 108–11) ............................................................................................... 25,000 ............................ ............................ ¥25,000 ............................

Andean Counterdrug Initiative ................................................................................................................................... 695,450 731,000 660,000 ¥35,450 ¥71,000

Emergency supplemental (Public Law 108–11) ............................................................................................... 34,000 ............................ ............................ ¥34,000 ............................(By transfer) ...................................................................................................................................................... (92,396) ............................ (54,000) (¥38,396) (∂54,000)Emergency supplemental (Public Law 108–11) (By transfer) ......................................................................... (20,000) ............................ ............................ (¥20,000) ............................

Migration and refugee assistance ............................................................................................................................. 781,885 760,197 760,197 ¥21,688 ............................United States Emergency Refugee and Migration Assistance Fund ......................................................................... 25,831 40,000 40,000 ∂14,169 ............................
72

COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2003 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL

FOR FISCAL YEAR 2004—Continued

[In thousands of dollars]

Item 2003 appropriation Budget estimate Committee rec- ommendation

Senate Committee recommendation compared with (∂ or ¥)

2003 appropriation Budget estimate

Emergency supplemental (Public Law 108–11) ............................................................................................... 80,000 ............................ ............................ ¥80,000 ............................

Nonproliferation, anti-terrorism, demining and related programs ............................................................................ 304,408 385,200 385,200 ∂80,792 ............................

(By transfer) ............................................................................................................................................. ............................ ............................ (15,000) (∂15,000) (∂15,000)

Emergency supplemental (Public Law 108–11) ............................................................................................... 28,000 ............................ ............................ ¥28,000 ............................

Subtotal, Department of State ..................................................................................................................... 2,170,294 2,200,947 2,129,947 ¥40,347 ¥71,000

Department of the Treasury

International Affairs Technical Assistance ................................................................................................................ 10,730 14,000 12,000 ∂1,270 ¥2,000Debt restructuring ...................................................................................................................................................... ............................ 395,000 195,000 ∂195,000 ¥200,000

Subtotal, Department of the Treasury .......................................................................................................... 10,730 409,000 207,000 ∂196,270 ¥202,000Total, title II, Bilateral economic assistance ............................................................................................... 15,461,938 12,565,580 11,877,929 ¥3,584,009 ¥687,651

Appropriations ...................................................................................................................................... (10,139,638) (12,565,580) (11,877,929) (∂1,738,291) (¥687,651)Emergency appropriations ................................................................................................................... (5,322,300) ............................ ............................ (¥5,322,300) ............................

(By transfer) .................................................................................................................................................. (121,857) (21,000) (116,000) (¥5,857) (∂95,000)(Transfer out) ................................................................................................................................................ (¥9,461) (¥21,000) (¥84,000) (¥74,539) (¥63,000)

TITLE III—MILITARY ASSISTANCE

FUNDS APPROPRIATED TO THE PRESIDENT

International Military Education and Training ........................................................................................................... 79,480 91,700 91,700 ∂12,220 ............................Foreign Military Financing Program:

Grants:

Camp David countries .............................................................................................................................. 3,377,900 3,460,000 3,460,000 ∂82,100 ............................Other ......................................................................................................................................................... 667,632 954,000 924,000 ∂256,368 ¥30,000Emergency supplemental (Public Law 108–11) ...................................................................................... 2,059,100 ............................ ............................ ¥2,059,100 ............................

(Transfer out) .................................................................................................................................. ............................ ............................ (¥32,000) (¥32,000) (¥32,000)

Subtotal, grants .......................................................................................................................... 6,104,632 4,414,000 4,384,000 ¥1,720,632 ¥30,000
73

(Limitation on administrative expenses) .......................................................................................................... (38,000) (40,000) (40,000) (∂2,000) ............................(Transfer out) .................................................................................................................................................... (¥92,396) ............................ ............................ (∂92,396) ............................Emergency supplemental (Public Law 108–11) (Transfer out) ........................................................................ (¥20,000) ............................ ............................ (∂20,000) ............................Associated outlays:

Israel ......................................................................................................................................................... ............................ ............................ ............................ ............................ ............................Egypt ......................................................................................................................................................... ............................ ............................ ............................ ............................ ............................Other ......................................................................................................................................................... ............................ ............................ ............................ ............................ ............................

Total, Foreign Military Financing ......................................................................................................... 6,104,632 4,414,000 4,384,000 ¥1,720,632 ¥30,000

Peacekeeping operations ............................................................................................................................................ 114,252 94,900 84,900 ¥29,352 ¥10,000

Emergency supplemental (Public Law 108–11) ............................................................................................... 100,000 ............................ ............................ ¥100,000 ............................

Total, title III, Military assistance ................................................................................................................ 6,398,364 4,600,600 4,560,600 ¥1,837,764 ¥40,000

Appropriations ...................................................................................................................................... (4,239,264) (4,600,600) (4,560,600) (∂321,336) (¥40,000)Emergency appropriations ................................................................................................................... (2,159,100) ............................ ............................ (¥2,159,100) ............................(Transfer out) ....................................................................................................................................... (¥112,396) ............................ (¥32,000) (∂80,396) (¥32,000)

(Limitation on administrative expenses) ...................................................................................................... (38,000) (40,000) (40,000) (∂2,000) ............................

TITLE IV—MULTILATERAL ECONOMIC ASSISTANCE

FUNDS APPROPRIATED TO THE PRESIDENT

International Financial Institutions

World Bank Group

Contribution to the International Bank for Reconstruction and Development: Global Environment Facility ........... 146,852 184,997 170,997 ∂24,145 ¥14,000Contribution to the International Development Association ...................................................................................... 844,475 976,825 976,825 ∂132,350 ............................Contribution to Multilateral Investment Guarantee Agency ...................................................................................... 1,620 4,002 1,124 ¥496 ¥2,878

(Limitation on callable capital subscriptions) ................................................................................................. (7,610) (16,340) (16,340) (∂8,730) ............................

Total, World Bank Group ............................................................................................................................... 992,947 1,165,824 1,148,946 ∂155,999 ¥16,878

Contribution to the Inter-American Development Bank:

Contribution to the Inter-American Investment Corporation ............................................................................ 18,233 30,898 8,898 ¥9,335 ¥22,000Contribution to the Enterprise for the Americas Multilateral Investment Fund .............................................. 24,431 32,614 30,614 ∂6,183 ¥2,000

Total, Inter-American Development Bank ..................................................................................................... 42,664 63,512 39,512 ¥3,152 ¥24,000

Contribution to the Asian Development Bank: Contribution to the Asian Development Fund ................................. 97,250 151,921 136,921 ∂39,671 ¥15,000Contribution to the African Development Bank:

Paid-in capital .................................................................................................................................................. 5,071 5,105 5,105 ∂34 ............................
74

COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2003 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL

FOR FISCAL YEAR 2004—Continued

[In thousands of dollars]

Item 2003 appropriation Budget estimate Committee rec- ommendation

Senate Committee recommendation compared with (∂ or ¥)

2003 appropriation Budget estimate

(Limitation on callable capital subscriptions) ................................................................................................. (79,603) (79,610) (79,610) (∂7) ............................Contribution to the African Development Fund ................................................................................................ 107,371 118,081 118,081 ∂10,710 ............................

Total, African Development Bank ................................................................................................................. 112,442 123,186 123,186 ∂10,744 ............................

Contribution to the European Bank for Reconstruction and Development:

Paid-in capital .................................................................................................................................................. 35,572 35,431 35,431 ¥141 ............................(Limitation on callable capital subscriptions) ................................................................................................. (123,328) (122,085) (122,085) (¥1,243) ............................

Contribution to the International Fund for Agricultural Development ...................................................................... 14,906 15,004 15,004 ∂98 ............................

Total, International Financial Institutions .................................................................................................... 1,295,781 1,554,878 1,499,000 ∂203,219 ¥55,878

International Organizations and Programs

Appropriation .............................................................................................................................................................. 193,882 314,550 314,550 ∂120,668 ............................

Total, title IV, Multilateral economic assistance ......................................................................................... 1,489,663 1,869,428 1,813,550 ∂323,887 ¥55,878(Limitation on callable capital subscript) ................................................................................................... (210,541) (218,035) (218,035) (∂7,494) ............................Grand total:

New budget (obligational) authority .................................................................................................... 23,718,563 18,932,588 18,136,859 ¥5,581,704 ¥795,729(By transfer) ......................................................................................................................................... (121,857) (21,000) (116,000) (¥5,857) (∂95,000)(Transfer out) ....................................................................................................................................... (¥121,857) (¥21,000) (¥116,000) (∂5,857) (¥95,000)(Limitation on administrative expenses) ............................................................................................. (38,000) (40,000) (40,000) (∂2,000) ............................(Limitation on callable capital subscript) .......................................................................................... (210,541) (218,035) (218,035) (∂7,494) ............................

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