19–006

108TH CONGRESS REPT. 108–105 " HOUSE OF REPRESENTATIVES ! 1st Session Part 4

FOREIGN RELATIONS AUTHORIZATION ACT, FISCAL YEARS 

2004 AND 2005

JULY 11, 2003.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. TAUZIN, from the Committee on Energy and Commerce, 

submitted the following 

R E P O R T 

[To accompany H.R. 1950] 

[Including cost estimate of the Congressional Budget Office]

The Committee on Energy and Commerce, to whom was referred 

the bill (H.R. 1950) to authorize appropriations for the Department 

of State for the fiscal years 2004 and 2005, to authorize appropriations under the Arms Export Control Act and the Foreign Assistance Act of 1961 for security assistance for fiscal years 2004 and 

2005, and for other purposes, having considered the same, report 

thereon with an amendment and without recommendation.

CONTENTS 

Page 

Amendment .............................................................................................................. 2

Purpose and Summary ............................................................................................ 2

Background and Need for Legislation .................................................................... 2

Hearings ................................................................................................................... 3

Committee Consideration ........................................................................................ 3

Committee Votes ...................................................................................................... 3

Committee Oversight Findings ............................................................................... 5

Statement of General Performance Goals and Objectives .................................... 5

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 5

Committee Cost Estimate ....................................................................................... 5

Congressional Budget Office Estimate ................................................................... 5

Federal Mandates Statement ................................................................................. 14

Advisory Committee Statement .............................................................................. 14

Constitutional Authority Statement ...................................................................... 14

Applicability to Legislative Branch ........................................................................ 14

Section-by-Section Analysis of the Legislation ...................................................... 14

Changes in Existing Law Made by the Bill, as Reported ..................................... 14

2

AMENDMENT

The amendment (stated in terms of the provisions of the amendment in the nature of a substitute reported by the Committee on 

International Relations) is as follows: 

Strike section 730, relating to climate change and conform the 

table of sections accordingly. 

PURPOSE AND SUMMARY

The Foreign Relations Authorization Act for Fiscal Years 2004 

and 2005 authorizes funding for the Department of State and the 

United States international broadcasting activities for fiscal years 

2004 and 2005, security assistance, and other foreign affairs programs. As reported by the House Committee on International Relations, H.R. 1950 contained section 730, which is a Sense of Congress regarding climate change. H.R. 1950 was referred sequentially to the Committee on Energy and Commerce for consideration 

of such provisions of the bill and amendment as fall within the jurisdiction of the Committee. 

BACKGROUND AND NEED FOR LEGISLATION

Section 730 of H.R. 1950, added by amendment in the House 

International Relations Committee, contains a Sense of Congress 

on climate change. Thirteen separate findings are contained in this 

section. These findings relate to the status of scientific inquiry into 

global climate change, certain actions of the Intergovernmental 

Panel on Climate Change, citation of a National Academy of 

Sciences report, reference to the United Nations Framework Convention on Climate Change (UNFCCC) and other statements of policy regarding both the science of climate change and the direction 

of public and private sector policies regarding climate change. 

Following the Congressional findings, section 730 indicates that ‘‘It is the sense of Congress that the United States should demonstrate international leadership and responsibility in reducing the 

health, environmental and economic risks posed by climate change 

***’’ Four separate actions then follow, which include ‘‘taking responsible action to ensure significant and meaningful reductions in 

emissions of greenhouse gases from all sectors,’’ creating flexible 

implementation measures for emission reductions and carbon sequestration, and participating in international negotiations, including putting forth a proposal ‘‘securing United States participation 

in a future binding treaty on climate change * * *’’ The Committee on Energy and Commerce has addressed climate 

change issues on numerous occasions. Most recently, on April 2, 

2003, during consideration of the Energy Policy Act of 2003, the 

Committee considered two amendments concerning climate change 

policy. The first amendment, offered by Representative Waxman, 

was substantially similar to section 730 of H.R. 1950. The amendment was defeated on a roll call vote of 18 ayes and 34 nos. 

Another amendment offered by Representative Waxman, also 

considered on April 2, 2003, contained eight findings concerning 

quotations attributed to President George W. Bush and Secretary 

of State Colin Powell as well as other statements concerning actions by President Bush. The amendment then provided a Sense of 

Congress statement ‘‘reaffirming’’ the commitment of the United 

3

States to the United Nations Framework Convention on Climate 

Change and expressing support for efforts to reduce carbon intensity in the United States. This amendment was rejected by a voice 

vote. 

HEARINGS

The Committee on Energy and Commerce has not held hearings 

on the legislation. 

COMMITTEE CONSIDERATION

On Wednesday, July 9, 2003, the Full Committee met in open 

markup session and ordered H.R. 1950 reported to the House, 

without recommendation, as amended, by a voice vote. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report legislation and amendments thereto. The following are 

the record votes taken on amendments offered to H.R. 1950, including the names of those Members voting for and against. A motion 

by Mr. Tauzin to order H.R. 1950 reported to the House, without 

recommendation, as amended, was agreed to by a voice vote.

4


Insert offset folio 4 here HR105.001
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COMMITTEE OVERSIGHT FINDINGS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee has not held oversight or legislative hearings on this legislation. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

The goals and objectives of this legislation are to provide authorization for the activities of the State Department and related agencies for fiscal years 2004 and 2005. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee finds that H.R. 1950, the 

Foreign Relations Authorization Act, Fiscal Years 2004 and 2005, 

would result in no new or increased budget authority, entitlement 

authority, or tax expenditures or revenues. 

COMMITTEE COST ESTIMATE

The Committee adopts as its own the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

CONGRESSIONAL BUDGET OFFICE ESTIMATE

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, the following is the cost estimate provided by 

the Congressional Budget Office pursuant to section 402 of the 

Congressional Budget Act of 1974:

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, July 11, 2003. 

Hon. W.J. ‘‘BILLY’’ TAUZIN, 

Chairman, Committee on Energy and Commerce, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 1950, the Foreign Relations Authorization Act, Fiscal Years 2004 and 2005. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Sunita D’Monte. 

Sincerely, 

DOUGLAS HOLTZ-EAKIN, Director. 

Enclosure. 

H.R. 1950—Foreign Relations Authorization Act, Fiscal Years 2004 

and 2005

Summary: CBO estimates that H.R. 1950 would authorize appropriations of $32.2 billion for the Department of State and related 

agencies, and for various security and economic assistance programs. Implementing the bill would result in additional discretionary spending of $30.5 billion over the 2004–2008 period, assumVerDate Jan 31 2003 05:31 Jul 12, 2003 Jkt 019006 PO 00000 Frm 00005 Fmt 6659 Sfmt 6602 E:\HR\OC\HR105P4.XXX HR105P4
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ing appropriation of the authorized amounts, CBO estimates. The 

bill also contains several provisions that would affect direct spending and revenues. CBO estimates that enacting those provisions 

would increase direct spending by $25 million over the 2006–2008 

period and have an insignificant effect on revenues. 

H.R. 1950 also would affect trade in defense article and services. 

It would give the President authority to control transfers within 

the United States of defense articles and defense services to foreign 

persons. It would lower the standard for violation of arms-export 

regulations and increase certain fines for violations of export controls. In addition, the bill would call for stringent control and scrutiny of the export of missile technology and would authorize the 

President to sanction any foreign governmental entity that the 

President determines has facilitated violations of export controls of 

missile equipment or technology. CBO estimates the trade-related 

provisions would not significantly affect federal spending. 

H.R. 1950 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

and would impose no costs on state, local, or tribal governments. 

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 1950 is shown in Table 1. For this estimate, 

CBO assumes that the authorized amounts will be appropriated by 

the start of each fiscal year and that outlays will follow historical 

spending patterns for existing programs, except as otherwise described. The costs of this legislation fall within budget functions 

050 (national defense), 150 (international affairs), 300 (natural resources and environment), and 800 (general government).

TABLE 1.—BUDGETARY IMPACT OF H.R. 1950, THE FOREIGN RELATIONS AUTHORIZATION ACT, 

FISCAL YEARS 2004 AND 2005

By fiscal year, in millions of dollars—

2003 2004 2005 2006 2007 2008

SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law for the State Department, 

Related Agencies, and Various Assistance Programs: 

Authorization Level 1,2 ............................................. 17,937 900 0 0 0 0

Estimated Outlays ................................................... 17,650 7,067 3,117 1,773 995 520

Proposed Changes: 

Estimated Authorization Level ................................. 0 15,221 15,570 476 478 479

Estimated Outlays ................................................... 0 9,991 13,644 3,945 1,737 1,231

Spending Under H.R. 1950 for the State Department, 

Related Agencies, and Various Assistance Programs: 

Estimated Authorization Level 1,2 ........................... 17,937 16,121 15,570 476 478 479

Estimated Outlays ................................................... 17,650 17,058 16,761 5,718 2,732 1,751

CHANGES IN DIRECT SPENDING

Estimated Budget Authority ............................................. 0 * * 5 10 10

Estimated Outlays ............................................................ 0 * * 5 10 10

Note:—*=less than $500,000.

1 The 2003 level is the amount appropriated for that year and includes appropriations provided in Public Law 108–11, the Emergency Wartime Supplemental Appropriations Act, 2003. 2 Public Law 106–113, an act making consolidated appropriations for the fiscal year ending September 30, 2000, and for other purposes, authorized appropriations of $900 million for Embassy Security, Construction, and Maintenance in 2004. 

Basis of estimate: H.R. 1950 would provide a comprehensive twoyear authorization of appropriations for the State Department and 

related agencies, and it would authorize appropriations for various 

security and economic assistance programs. In addition, the bill 

7

contains several provisions that would affect direct spending and 

revenues.

Spending Subject to Appropriation 

CBO estimates that Divisions A and B of H.R. 1950 would authorize appropriations of about $32 billion for the Department of 

State and related agencies and for various security and economic 

assistance programs. CBO estimates that implementing the bill 

would result in additional discretionary spending of $30.5 billion 

over the 2004–2008 period, assuming appropriation of the authorized amounts. 

Division A—Department of State Authorization Act, Fiscal Years 

2004 and 2005. CBO estimates that Division A would authorize appropriations of about $9.3 billion in 2004, $10.7 billion in 2005, and 

$0.1 billion a year over the 2006–2008 period for the Department 

of State and related agencies (see Table 2). It would specifically authorize appropriations of $9.3 billion in 2004, $10.1 billion in 2005, 

and some small amounts over the 2006–2008 period. In addition to 

the costs covered by the specified authorizations, the division contains provisions primarily dealing with international peacekeeping, 

public diplomacy, and personnel, that CBO estimates would require 

additional appropriations of almost $0.9 billion over the 2004–2008 

period to implement. CBO estimates that implementing this division would cost almost $19.5 billion over the 2004–2008 period, assuming appropriation of the specified and estimated amounts.

TABLE 2.—ESTIMATED SPENDING SUBJECT TO APPROPRIATION FOR DIVISION A OF H.R. 1950

By fiscal year, in millions of dollars—

2003 2004 2005 2006 2007 2008

Spending Under Current Law for the State Department and Related Agencies: 

Authorization Level 1, 2 ............................................ 9,257 900 0 0 0 0

Estimated Outlays ................................................... 8,998 3,338 1,649 1,065 657 347 

Proposed Changes: 

Estimated Authorization Level ................................. 0 9,340 10,694 106 108 109 

Estimated Outlays ................................................... 0 6,422 8,534 2,587 1,179 762 

Spending Under Division A of H.R. 1950 for the State 

Department and Related Agencies: 

Estimated Authorization Level 1, 2 ........................... 9,257 10,240 10,694 106 108 109 

Estimated Outlays ................................................... 8,998 9,760 10,183 3,652 1,836 1,109

1 The 2003 level is the amount appropriated for that year and includes appropriations provided in Public Law 108–11, the Emergency Wartime Supplemental Appropriations Act, 2003. 2 Public Law 106–113, an act making consolidated appropriations for the fiscal year ending September 30, 2000, and for other purposes, 

authorized appropriations of $900 million for Embassy Security, Construction, and Maintenance in 2004. 

International Peacekeeping. Section 113 would authorize the ap- propriation of $550 million in 2004 and such sums as may be necessary in 2005 for contributions to international peacekeeping activities. Based on information from the Department of State and 

adjusting for inflation, CBO estimates that the department would 

require $560 million in 2005. 

Middle East Broadcasting Network. Section 501 would authorize 

annual grants for a Mideast Radio and Television Network to provide radio and television broadcasts to the Middle East region. 

Under current law, Radio Sawa provides radio programming to the 

Middle East at an annual cost of about $10 million. The Broadcasting Board of Governors (BBG) plans to add a satellite television 

network that would provide news, entertainment, and information 

programs to complement this radio programming. Public Law 108–

8

11, the Emergency Wartime Supplemental Appropriations Act, 

2003, provided $26 million in 2003 for start-up costs of the network. The bill provides an authorization of appropriations of $47 

million in each of 2004 and 2005 only. Based on information from 

the BBG, CBO estimates that operating costs for this television 

network would be $37 million a year over the 2004–2008 period, and the costs for Radio Sawa would continue at about $10 million 

a year. 

Exchange Programs. Section 251 would establish new educational 

and cultural exchange programs and expand existing ones in countries with predominantly Muslim populations. Section 112 would 

authorize the appropriations of $35 million a year for this purpose 

in 2004 and 2005. CBO estimates that continuing these programs 

would cost an additional $112 million over the 2006–2008 period. 

Promotion of Free Media. Section 607 would establish an International Free Media Fund within the department to promote the 

development of free and independent media all over the world. The 

bill would authorize appropriations of $15 million in 2004 for this 

purpose. Section 608 would require the BBG to support free media, 

especially in countries where it is reducing or discontinuing international broadcasting, and would authorize appropriations of $2.5 

million each year in 2004 and 2005 for this purpose. 

Hardship and Danger Pay Allowances. Section 307 would increase the cap on hardship and danger pay allowances from 25 percent to 35 percent of basic pay for State Department employees 

serving overseas. Based on information from the Department of 

State, CBO estimates implementing this section would cost $8 million to $9 million annually over the 2004–2008 period.

Office of Global Internet Freedom. Section 524 would authorize 

the BBG to establish an Office of Global Internet Freedom to prevent foreign governments from censoring or jamming the Internet 

and persecuting their citizens who use the Internet. The bill would 

specifically authorize appropriations of $8 million a year in 2004 

and 2005 to establish and operate this office. CBO estimates implementing this section would cost $8 million to $9 million annually 

over the 2004–2008 period. 

Indefinite Authorizations for Currency Fluctuations. Section 

113(c) would authorize the appropriation of such sums as may be 

necessary in 2004 to compensate for adverse fluctuations in exchange rates that might affect contributions to international organizations. Any funds appropriated for this purpose would be obligated and expended subject to certification by the Office of Management and Budget. Currency fluctuations are extremely difficult 

to estimate in advance, and they could result in spending either 

higher or lower than the amounts specifically authorized in the bill 

for contributions to international organizations and programs. 

Therefore, this estimate includes no costs associated with currency 

fluctuations. 

Colin Powell Center for American Diplomacy. Section 230 would 

authorize the Secretary of State to establish the Colin Powell Center for American Diplomacy at the Harry S. Truman Building in 

Washington, D.C. According to the Department of State, it would 

establish the center through a partnership with the nonprofit Foreign Affairs Museum Council (FAMC). The department would provide the space, staff, and security for the center, while FAMC 

9

would provide funding from private sources. A feasibility study is 

currently underway, and the department was unable to provide details that would allow CBO to estimate the operating costs of the 

center. 

Reporting Requirements. Division A includes several provisions 

that would expand or introduce new reporting requirements. Combined, these provisions would raise spending subject to appropriation by about $2 million annually, but each provision would likely 

cost less than $500,000 a year. 

Miscellaneous Provisions. CBO estimates that the following sections of Division A would have an insignificant impact on spending 

subject to appropriation; 

• Section 206 would authorize a demonstration program in library sciences to help foreign governments improve literacy and 

public education in their countries by establishing or upgrading 

public library systems.

• Section 224 would reduce by about half the reimbursement 

rate paid by the Department of State to the Department of Defense 

(DoD) for transporting armored vehicles by air. Over the 2000–

2002 period, the department reimbursed DoD an average of $2 million a year. Based on this information, CBO estimates that implementing this section would save the department $1 million a year, 

which would be offset by additional costs to DoD of the same 

amount. 

• Section 301 would authorize an exchange program for the assignment of civil and foreign service employees to fellowship positions in foreign governments, and the reciprocal assignment of foreign government employees as fellows in the department. 

• Section 302 would clarify the department’s authority to settle 

claims of back pay and other administrative claims and grievances. 

• Section 310 would give the department greater flexibility in 

awarding meritorious step increase in salaries. 

• Section 504 would authorize the BBG to conduct a pilot program to promote travel and tourism by broadcasting information on 

regions of the United States that rely on tourism. 

• Subtitle C of title V would transfer all functions and assets of 

the BBG and the International Broadcasting Bureau to a new independent agency named the International Broadcasting Agency. 

Division B—Defense Trade and Security Assistance Reform Act 

of 2003. Division B would tighten regulation of trade in defense 

and dual-use articles and technologies and authorize funding for 

various security assistance programs (see Table 3). Unlike Division 

A, which provides a comprehensive two-year authorization of appropriations of foreign relations authorizations, this division would 

authorize funding for various programs, projects, and activities 

through specific and indefinite authorizations of appropriation or 

through earmarks of funds not authorized elsewhere in the bill. For 

this estimate, CBO treats these earmarks as authorizations of appropriations since there are no amounts authorized for the programs in general. CBO estimates that implementing Division B 

would cost $3.6 billion in 2004 and $11.1 billion over the 2004–

2008 period, assuming the appropriation of the necessary amounts.

10

TABLE 3.—ESTIMATED SPENDING SUBJECT TO APPROPRIATION FOR DIVISION B OF H.R. 1950

By fiscal year, in millions of dollars—

2003 2004 2005 2006 2007 2008

Spending Under Current Law for Various Security Assistance Programs: 

Budget Authority 1 ................................................... 8,680 0 0 0 0 0

Estimated Outlays ................................................... 8,652 3,729 1,468 708 339 173

Proposed Changes: 

Estimated Authorization Level ................................. 0 5,881 4,876 370 370 370

Estimated Outlays ................................................... 0 3,569 5,110 1,359 558 470

Spending Under Division B of H.R. 1950 for Various Security Assistance Programs: 

Estimated Authorization Level 1 .............................. 8,680 5,881 4,876 370 370 370

Estimated Outlays ................................................... 8,652 7,298 6,578 2,067 897 643

1 The 2003 level is the amount appropriated for that year and includes appropriations provided in Public Law 108–11, the Emergency Wartime Supplemental Appropriations Act, 2003. 

Security Assistance and Related Provisions. Title XIII would authorize the appropriation of $4.4 billion for foreign military financing and $91.7 million for international military education and 

training in 2004. 

Sections 1321 and 1322 would authorize foreign military financing and Economic Support Fund appropriations for Israel and 

Egypt through 2005. The sections would specify formulas that 

would continue through 2005 the gradual reduction of economic assistance to those two countries and the increase in foreign financing for Israel begun in 1999. For Israel, section 1321 would authorize foreign military financing of $2.160 billion in 2004 and $2.220 

billion in 2005, and Economic Support Fund appropriations of $480 

million in 2004 and $360 million in 2005. For Egypt, section 1322 

would authorize foreign military financing for Egypt of $1.3 billion 

in both 2004 and 2005 and Economic Support Fund appropriations 

of $575 million in 2004 and $535 million in 2005. 

Section 1337 would authorize the appropriation of $60 million a 

year for the nonproliferation fund in 2004 and 2005 and $25 million a year in 2004 and 2005 to secure highly enriched uranium 

states of the former Soviet Union.

Missile Threat Reduction Assistance. Title XIV would authorize 

the appropriation of $250 million for assistance to countries that 

agree to destroy their ballistic missiles and their facilities for producing those missiles. Under the bill, the President would determine the terms and conditions for providing the assistance which 

could be economic or military in character. For this estimate, CBO 

assumes the funds would be appropriated at the rate of $50 million 

a year over the 2004–2008 period and the rate of spending would 

be comparable to that for the Former Soviet Union Threat Reduction. 

Belarus. Title XVI would authorize the appropriation of such 

sums as may be necessary in 2004 and 2005 for assistance and 

radio broadcasting to promote the development of democracy and 

civil society in Belarus. The assistance could be used to develop 

democratic parties, nongovernmental organizations, an independent broadcasting and print media, or to observe elections. 

Based on information from the State Department, CBO estimates 

that funding for such assistance in Belarus would continue at the 

2003 level of $10 million each year. Based on information from the 

BBG, CBO further estimates that funding for international broadVerDate Jan 31 2003 05:31 Jul 12, 2003 Jkt 019006 PO 00000 Frm 00010 Fmt 6659 Sfmt 6602 E:\HR\OC\HR105P4.XXX HR105P4
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casting to Belarus would double to $3 million a year, for an increase of $1.5 million each year over the amount authorized in Division A of the bill. 

Israeli-Palestinian Peace Enhancement Act. Title XVII would express the sense of the Congress with respect to U.S. recognition of 

a Palestinian state and express a willingness to provide substantial 

economic and humanitarian assistance to such a state. It would authorize the appropriation of such sums as may be necessary to promote the economic and civil development of a Palestinian state. 

However, the President must certify a binding peace agreement between Israel and the Palestinians has been achieved under a set 

of conditions before any assistance may be provided to a Palestinian state. The President may waive the certification and the restrictions would not apply to humanitarian or development assistance provided to nongovernmental organizations for the benefit of 

the Palestinian people. CBO estimates that implementing title 

XVII would cost $0.8 billion over the 2004–2008 period, assuming 

the appropriation of the necessary amounts. The estimate assumes 

that funding in 2004 would continue at the 2003 rate and would 

increase to over $0.3 billion a year over the 2006–2008 period. 

It is difficult to estimate the cost of implementing title XVII because of the uncertainty over when or whether Israel and the Palestinians may reach an agreement recognizing a two-state solution 

to peace in the Middle East region. Under the roadmap to a permanent two-state solution, as outlined by the State Department on 

April 30, 2003, the goal would be a permanent status agreement 

in 2005. CBO estimates that substantially increased funding for 

the Palestinian people could begin by that year.

The bill provides no guidance for interpreting the intent of the 

phrase ‘‘substantial economic and humanitarian assistance.’’ For 

the purpose of the estimate, CBO assumes that funding in 2004 for 

West Bank/Gaza in the Economic Support Fund would continue at 

the $75 million funding level appropriated for 2003 and triple to 

$225 million in 2005. For the 2006–2008 period, we assume that 

the funding for a Palestinian state would be increased by the $95 

million that the United States has in the past contributed for assistance to the Palestinian people through the United Nations Relief and Works Agency for Palestinian Refuges. That increase 

would raise funding to $320 million a year. In the past, breakthrough agreements such as the Camp David accords and peace 

with Jordan have been followed by bilateral assistance appropriations of billions or many hundreds of millions of dollars. Funding 

after a true peace agreement between Israel and the Palestinians 

could be much higher than CBO estimates. Without an agreement, 

funding would be much lower. 

Miscellaneous Provisions. Title XVIII contains a number of provisions that would authorize appropriations for various economic and 

security assistance programs. They include: 

• Section 1803 would authorize $2 million a year in 2004 and 

2005 for a cooperative development program with Israel. 

• Section 1806 would authorize $25 million a year in 2004 and 

2005 for economic assistance for East Timor. 

• Section 1807 would authorize $15 million a year in 2004 and 

2005 for grants to individuals and groups supporting democracy 

building efforts in Cuba. 

12

• Section 1809 would authorize $18.6 million a year in 2004 and 

2005 for a Congo Basin forest partnership program. • Section 1810 would authorize $10 million for programs to provide equipment and training to law enforcement officials, prosecutors, and judges in foreign countries in interpreting intellectual 

property laws and in complying with obligations under various 

international copyright and intellectual property treaties and 

agreements. • Section 1811 would authorize assistance to law enforcement 

agencies in India and Ireland in 2004 and 2005. Based on information from the State Department, CBO estimates that implementing 

the provision would cost $3 million each year, assuming the appropriation of the necessary funds. • Section 1812 would authorize $24 million in 2004 and such 

sums as may be necessary in 2005 for the human rights and democracy fund administered by the Department of State. Based on 

information from the Department of State, CBO estimates funding 

in 2005 would continue at the level specified for 2004. • Section 1815 would authorize the appropriation of $1 million 

in 2004 and such sums as may be necessary in 2005 for a grant 

to the African Society for programs in Africa. CBO estimates funding in 2005 would continue at the level specified for 2004. 

Direct Spending and Revenues 

CBO estimates that several provisions in the bill would increase 

direct spending or have an insignificant effect on receipts. 

Transfer of Defense Articles in the U.S. War Reserve Stockpile 

for Allies (USWRSA). Section 1332 would extend for five years the 

President’s authority to transfer to Israel obsolete or surplus defense articles in the USWRSA in Israel in return for concessions 

to be negotiated by the Secretary of Defense. The concessions may 

include cash, services, waiver of charges otherwise payable by the 

United States, or other items of value. Since articles may be transferred by sale under current law, CBO estimates that the authority 

provided by the section could be used to negotiate noncash concessions thereby lowering offsetting receipts to the DoD. 

According to DoD, much of the material in the USWRSA in 

Israel was used in the recent Iraq conflict and the department is 

conducting a new inventory to determine what stocks remain. DoD 

also indicates that the existing authority has not used for Israel in 

the past, though similar authority has been used for the stockpile 

in Korea. Given the current status of the USWRSA in Israel, CBO 

estimates the authority would not be used in 2004 and probably 

not in 2005. If the authority provided in section 1332 were used to 

the same extent as that for the stockpile in Korea, CBO estimates 

forgone receipts would total between $5 million and $10 million a 

year over the 2006–2008 period. 

Cost-Sharing for New Diplomatic Facilities. Section 227 would 

allow the Department of State, beginning in 2005, to charge a fee 

to every federal agency that has a presence at any U.S. diplomatic 

facility to help fund the construction of new diplomatic facilities. 

The amount of the fee charged would be determined by a formula 

that takes into account the number of employees assigned to each 

diplomatic mission. Based on information from OMB and the Department of State, CBO estimates that construction of new diploVerDate Jan 31 2003 05:31 Jul 12, 2003 Jkt 019006 PO 00000 Frm 00012 Fmt 6659 Sfmt 6602 E:\HR\OC\HR105P4.XXX HR105P4
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matic facilities could cost about $1 billion a year over the next several years and that roughly 40 percent of these costs would be born 

by federal agencies other than the Department of State. Because 

the collection and spending of the fees would not be subject to the 

annual appropriation process, this provision would affect direct 

spending. CBO estimates that collections from the new fee would 

offset spending on construction, and that this proposal would not 

significantly increase or decrease federal spending as a whole, but 

would merely shift costs from the Department of State to other federal agencies. Ultimately, all such federal costs are and still would 

be subject to appropriation of the necessary amounts. (That is, the 

only direct spending effects relate to the intragovernmental transfers and their use by the Department of State.) 

Colin Powell Center for American Diplomacy. Section 230 would 

authorize the Secretary to provide museum visitor and educational 

outreach services at the center and to sell, trade, or transfer documents and articles that are displayed at the center. Any proceeds 

generated from these services or sales would be retained and spent 

by the center. CBO estimates that this provision would have an insignificant net effect on direct spending. 

Arms Export Controls. Provisions in titles XI and XII would revise licensing requirements for the export of certain defense articles and technology and would lower the standard and increase 

fines for violations of export controls. CBO estimates implementing 

the provisions would have an insignificant effect on receipts and direct spending. 

Intergovernmental and private-sector impact: H.R. 1950 contains 

no intergovernmental or private-sector mandates as defined in 

UMRA and would impose no costs on state, local, or tribal governments. 

Previous CBO estimates: On April 24, 2003, CBO transmitted a 

cost estimate for S. 925, the Foreign Relations Authorization Act, 

Fiscal Year 2004, as ordered reported by the Senate Committee on 

Foreign Relations on April 9, 2003. Several sections in Division A 

of H.R. 1950 are similar or identical to sections of S. 925 and would 

have similar costs. (The Senate bill would authorize appropriations 

only for 2004, whereas H.R. 1950 would authorize appropriations 

for 2004 and 2005.)

On June 9, 2003, CBO transmitted an estimate for S. 1161, the 

Foreign Assistance Authorization Act, Fiscal Year 2004, as reported by the Senate Committee on Foreign Relations on May 29, 

2003. Several sections in Division B of H.R. 1950 are similar or 

identical to sections of S. 1161 and would have similar costs; however, the Senate bill would provide a more comprehensive authorization of appropriations for economic and security assistance programs in 2004. 

On June 11, 2003, CBO transmitted a cost estimate for H.R. 

1950, as reported by the House Committee on International Relations on May 16, 2003. On June 30, 2003, CBO transmitted a cost 

estimate for H.R. 1950, as ordered reported by the House Committee on Armed Services on June 26, 2003. H.R. 1950, as reported 

by the Committee on International Relations, as ordered reported 

by the Committee on Armed Services, and as ordered reported by 

the Committee on Energy and Commerce all have similar or identical sections and would have similar costs; however, the ComVerDate Jan 31 2003 05:31 Jul 12, 2003 Jkt 019006 PO 00000 Frm 00013 Fmt 6659 Sfmt 6602 E:\HR\OC\HR105P4.XXX HR105P4
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mittee on Energy and Commerce’s version of the bill does not include a provision relating to climate change. 

In total, the three versions of H.R. 1950 would all have estimated 

discretionary costs of about $30.5 billion over the 2004–2008 period, and they all would have estimated direct spending of about 

$25 million over the next five years. 

Estimate prepared by: Federal Costs: State Department: Sunita 

D’Monte and Security Assistance and Foreign Aid: Joseph C. 

Whitehill. Impact on State, Local, and Tribal Governments: Victoria Heid Hall. Impact on the Private Sector: Paige Piper/Bach. 

Estimate approved by: Peter H. Fontaine, Deputy Assistant Director for Budget Analysis.

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office 

pursuant to section 423 of the Unfunded Mandates Reform Act. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

CONSTITUTIONAL AUTHORITY STATEMENT

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee finds that the Constitutional authority for this legislation is provided in Article I, section 8, clause 

3, which grants Congress the power to regulate commerce with foreign nations, among the several States, and with the Indian tribes. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

The Committee deleted the only section within its jurisdiction 

(section 730) contained in H.R. 1950. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

The bill was referred to this committee for consideration of such 

provisions of the bill and amendment as fall within the jurisdiction 

of this committee pursuant to clause 1(f) of Rule X of the Rules of 

the House of Representatives. The changes made to existing law by 

the amendment reported by the Committee on International Relations are shown in the supplemental report filed by that committee 

(Rept. 108–105, Part 2).

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