U.S. GOVERNMENT PUBLISHING OFFICE

36–642PDF WASHINGTON : 2019

U.S. INTERESTS IN SOUTH ASIA AND THE FY 

2020 BUDGET 

HEARING 

BEFORE THE

SUBCOMMITTEE ON ASIA, THE PACIFIC AND 

NONPROLIFERATION 

OF THE

COMMITTEE ON FOREIGN AFFAIRS 

HOUSE OF REPRESENTATIVES 

ONE HUNDRED SIXTEENTH CONGRESS 

FIRST SESSION 

June 13, 2019 

Serial No. 116–47 

Printed for the use of the Committee on Foreign Affairs 

( 

Available: http://www.foreignaffairs.house.gov/, http://docs.house.gov, 

or http://www.Govinfo.gov 
(II) 

COMMITTEE ON FOREIGN AFFAIRS 

ELIOT L. ENGEL, New York, Chairman 

BRAD SHERMAN, California 

GREGORY W. MEEKS, New York 

ALBIO SIRES, New Jersey 

GERALD E. CONNOLLY, Virginia 

THEODORE E. DEUTCH, Florida 

KAREN BASS, California 

WILLIAM KEATING, Massachusetts 

DAVID CICILLINE, Rhode Island 

AMI BERA, California 

JOAQUIN CASTRO, Texas 

DINA TITUS, Nevada 

ADRIANO ESPAILLAT, New York 

TED LIEU, California 

SUSAN WILD, Pennsylvania 

DEAN PHILLIPS, Minnesota 

ILHAN OMAR, Minnesota 

COLIN ALLRED, Texas 

ANDY LEVIN, Michigan 

ABIGAIL SPANBERGER, Virginia 

CHRISSY HOULAHAN, Pennsylvania 

TOM MALINOWSKI, New Jersey 

DAVID TRONE, Maryland 

JIM COSTA, California 

JUAN VARGAS, California 

VICENTE GONZALEZ, Texas 

MICHAEL T. MCCAUL, Texas, Ranking 

Member 

CHRISTOPHER H. SMITH, New Jersey 

STEVE CHABOT, Ohio 

JOE WILSON, South Carolina 

SCOTT PERRY, Pennsylvania 

TED S. YOHO, Florida 

ADAM KINZINGER, Illinois 

LEE ZELDIN, New York 

JIM SENSENBRENNER, Wisconsin 

ANN WAGNER, Missouri 

BRIAN MAST, Florida 

FRANCIS ROONEY, Florida 

BRIAN FITZPATRICK, Pennsylvania 

JOHN CURTIS, Utah 

KEN BUCK, Colorado 

RON WRIGHT, Texas 

GUY RESCHENTHALER, Pennsylvania 

TIM BURCHETT, Tennessee 

GREG PENCE, Indiana 

STEVE WATKINS, Kansas 

MIKE GUEST, Mississippi 

JASON STEINBAUM, Staff Director 

BRENDAN SHIELDS, Republican Staff Director 

SUBCOMMITTEE ON ASIA, THE PACIFIC AND NONPROLIFERATION

BRAD SHERMAN, California, Chairman 

DINA TITUS, Nevada 

CHRISSY HOULAHAN, Pennsylvania 

GERALD E. CONNOLLY, Virginia 

AMI BERA,California 

ANDY LEVIN.Michigan 

ABIGAIL SPANBERGER, Virginia 

TED YOHO, Florida, Ranking Member 

SCOTT PERRY, Pennsylvania 

ANN WAGNER, Missouri 

BRIAN MAST, Florida 

JOHN CURTIS, Utah 

DON MACDONALD, Staff Director 
(III) 

C O N T E N T S 

Page 

WITNESSES 

Wells, Ms. Alice, Acting Assistant Secretary for South and Central Asian 

Affairs, U.S. Department of State ...................................................................... 7 

Freeman, Ms. Karen, Assistant to the Administrator for the Office of Afghanistan and Pakistan Affairs, United States Agency for International Development ...................................................................................................................... 17 

Steele, Ms. Gloria, Acting Assistant Administrator for the Bureau for Asia, 

United States Agency for International Development ...................................... 25 

INFORMATION FOR THE RECORD SUBMITTED FROM COMMITTEE 

MEMBERS 

Information submitted for the record from Representative Houlahan ............... 37 

APPENDIX 

Hearing Notice ......................................................................................................... 54 

Hearing Minutes ...................................................................................................... 55 

Hearing Attendance ................................................................................................. 56 

ADDITIONAL MATERIALS SUBMITTED FOR THE RECORD 

Information submitted for the record from Representative Sherman ................. 57 

Statement for the record submitted from Representative Connolly .................... 62 

RESPONSES TO QUESTIONS SUBMITTED FOR THE RECORD 

Responses to questions submitted to Mrs. Steele from Representative Wagner 64 

Responses to questions submitted to Mrs. Wells from Representative ............... 65 

Responses to questions submitted to Mrs. Wells from Representative 

Houlahan .............................................................................................................. 70 

Responses to questions submitted to Mrs. Steele from Representative 

Houlahan .............................................................................................................. 71 

(1) 

U.S. INTERESTS IN SOUTH ASIA AND THE 

FISCAL YEAR BUDGET 

Thursday, June 13, 2019 

House of Representatives 

Subcommittee on Asia, the Pacific, and Nonproliferation 

Committee on Foreign Affairs 

Washington, DC 

The subcommittee met, pursuant to notice, at 9:35 a.m., in room 

2172 Rayburn House Office Building, Hon. Brad Sherman (chairman of the subcommittee) presiding. 

Mr. SHERMAN. The subcommittee will come to order. Members 

present will be permitted to submit written statements to be included in the official hearing record. Without objection, the hearing 

record will remain open for five calendar days to allow statements, 

questions, and extraneous material for the record, subject to the 

length limitation in the rules. 

We will be joined by members of the full committee who are not 

members of the subcommittee and, without objection, they will be 

allowed to ask questions at the end of the first round of questions. 

The first opening statement will be delivered by our ranking member, Ted Yoho. 

Mr. YOHO. Good morning. Thank you, Mr. Chairman, for calling 

this hearing. I appreciate the opportunity to discuss the Fiscal 

Year 2020 State Department and U.S. Agency for International Development budget request for the South Asia region. I would also 

like to thank our distinguished witnesses for being here today. 

The relationship between the United States and countries in 

South Asia concerning democracy promotion and economic growth 

is ripe for cooperation. However, the region also faces significant 

challenges particularly involving China’s increased influence in the 

region. We have also seen the continued proliferation of human 

rights abuses and acts of radical terrorism. I would like to focus 

this hearing on how U.S. expenditures support the health of U.S.- 

Asia’s democratic institutions, increase economic development, and 

address security concerns while best serving U.S. interests. 

In recent years, we have seen an increased focus on South Asia. 

In 2017, the Trump administration announced their Free and Open 

Indo-Pacific Strategy which restructured the typical Asia Pacific 

approach and emphasized the importance of this region to the U.S. 

and our national security. This area is vital for national security. 

The development and the growth, as we have heard over and over 

again, there is going to be more people living in the Asia Pacific 

theater by 2050 in the world than outside of that. 

This strategy is marked by respect for sovereignty, freedom of 

navigation, open markets, and transparent investment in the Indo- 
2 

Pacific and is carried out by agencies like the Department of State 

and USAID, whom we have here today with us and we are so excited. A June 2019 Pentagon report called the Indo-Pacific the single, most consequential reason for America’s future. 

For this reason, we must continue to address the region’s shifting 

geopolitical landscape, increasing complex security outlook, lingering human rights issues—not lingering human rights issues, 

but more egregious human rights issues that we haven’t seen since 

probably World War II—and enduring development challenges. 

I look forward to hearing from our witnesses on how the Department of State and USAID intend to address these concerns and 

how Congress can best support them in these endeavors. I yield 

back. 

Mr. SHERMAN. Thank you, Mr. Yoho. 

Today’s hearing examines the administration’s budget request for 

South Asia and our interest in the region. We look forward to hearing from Ambassador Wells, Ms. Steele, and Ms. Freeman. I will 

introduce them at the end of my opening remarks. 

In the 4-years from 2014 to 2017, our annual aid to South Asia 

averaged $2.2 billion. This included one billion for Afghanistan and 

nearly 800 million for Pakistan. But our 2018 budget for South 

Asia has dropped almost in half, and the Fiscal Year 2020 budget 

is proposed at $1 billion, including half a billion or a bit more than 

that for Afghanistan, and 70 million for Pakistan. This is a dramatic reduction in our efforts. It will be interesting to hear from 

our witnesses whether South Asia is dramatically less important to 

us than it was a few years ago. 

As to India, we have a strategic partnership in the Indo-Pacific. 

I am working to strengthen that relationship as co-chair of the 

India Caucus. Our partnership is built around common democratic 

values, our economic relations, and our strategic interests. And of 

course, there have been several steps forward in the area of joint 

naval exercises, whether it be U.S.-India or U.S.-Japan-India. We 

do have a $24 billion trade deficit with India. I look forward to 

hearing from our witnesses how we are going to open India’s markets and how India is going to open its markets so tha American 

exports will increase. 

As to Pakistan, USAID projects have covered energy, agriculture, 

education, and health sectors. There is a small but growing middle 

class, civil society, independent judiciary, and we have had two 

elected changes in government at least in the—what should I say— 

official government as opposed to the whatever role in government 

the military plays beyond what is set forth in the constitution. 

That being said, our aid to Pakistan less than a decade ago was 

two billion a year. We now have cut it to 70 million. If I did the 

math quickly, I would just say that is under 5, you know, that is 

a 95 percent reduction, roughly. Pakistan, I think, is very important to the security of the United States. There are those that 

argue that Pakistan is important because it is close to Afghanistan 

and I think it is just the reverse. 

It is true that looking at history, looking at 2001, Afghanistan 

suddenly became critical to our national security and the fact that 

al-Qaida was able to operate there, who had devastating effects on 

our country. But looking forward, it is clear that Pakistan will have 
3 

a much bigger impact on the United States and, of course, is a nuclear country with—nuclear weapons State with a growing nuclear 

arsenal. 

I want to hear about what we are doing with regard to forced 

conversions, particularly in southern Pakistan where young girls 

are, in effect, kidnapped, forced to convert first to Islam and then 

forced to marry. And I will want to focus on human rights in Pakistan as a whole and particularly in Sindh Province and, of course, 

Pakistan giving safe haven to terrorists that attack Afghanistan 

and India. 

Now given the importance of Pakistan, I do not think there is 

anything more important than our public broadcasting to the people of Pakistan. We broadcast over only in one Pakistani language, 

Pashtun, which is both a Pakistani and an Afghan language, leaving out the many tens of millions of Pakistanis that speak Sindhi. 

I have offered an amendment which is pending on the floor and my 

staff may pull me out of this room and, if so, it is for a good reason, 

one that I am sure all of our witnesses will agree with and that 

is to increase the budget of Radio Free Europe and Radio Liberty, 

so that they can begin a Sindhi language service. 

Whether we will be able to get them the full million and a half 

that they have said they wanted for a 24-hour service or whether 

it will be less, will depend upon the legislative process. So whether 

we get anything will depend upon the legislative process. But given 

Pakistan’s—I mean Pakistan is, for example, the only State with 

nuclear weapons that has experienced a military coup, and I will 

turn to the historians on our panel to tell me just how many military coups Pakistan has had. But that is 100 percent of all the 

military coups in all nuclear States. 

So, we do need to reach out to the people of Pakistan and I am by no means sure that the $70 million we are spending is sufficient. Further, I will point out that the big thing we are doing for 

Pakistan is the IMF loan. While our aid is 70 million, the IMF loan 

is 6 billion. And, of course, I do not think that could have happened 

without the United States and I hope that I will be told by our witnesses that when Treasury’s over there at the IMF they aren’t just 

checking the boxes for fiscal purposes, but are, in fact, taking policy 

direction from the State Department. 

In Afghanistan, we have given 130 billion in security and development assistance since 2001. The conflict continues. The Taliban 

finds safe havens in Pakistan. One of the reasons for this is because Pakistan fears a united Afghanistan that might make claims 

on its territory, particularly at a time when Pakistan might be preoccupied with India. 

The way to make Pakistan calmer and more solidly in favor of 

a peaceful, strong, and prosperous Afghanistan is to gain international recognition from the Durand Line. I will discuss with our 

witnesses what we can do at the United Nations to get the entire 

world to recognize the Durand Line and to make it plain to Afghanistan and Pakistan that their border is that line and that they can 

live in peace without either side, particularly without Afghanistan 

looking for an opportunity to expand its territory. 

As for Sri Lanka, we all express our deepest condolences to those 

affected by the tragic Easter Sunday terrorist attacks. These at-
4 

tacks took place 10 years after Sri Lanka ended its civil war, and 

I hope that these attacks will not impede the reconciliation efforts 

between the Sinhalese and Tamil communities. 

As to democracy, development, and burden sharing, our foreign 

aid has supported development in the Maldives which might be the 

first nation submerged if we do not do something about global 

warming and global climate change, Nepal and Bangladesh. And I 

want to commend Bangladesh for hosting hundreds of thousands of 

Rohingya from neighboring Myanmar. 

As I have said in this room before, if Myanmar or Burma is unwilling or unable to be a good government for the Rohingya people 

that live in North Rakhine State, then we should transfer and the 

United States should support the transfer—that portion of that 

State to Bangladesh, which is willing to accommodate the people. 

The Rohingya people of North Rakhine State deserve a government 

that tries to protect them, not destroy them. 

Overall, our aid can consolidate democracy and advance development across South Asia. Freedom House scores the region at 3.7 

on a scale of 1 to 7 where 1 is the highest. This is better than the 

4.8 score of Southeast Asia, but the per capita income for South 

Asia is only $6,700 if measured in purchasing power which is 40 

percent less than Southeast Asia. 

So there is much development work to be done in South Asia. In 

recent years, Australia and Canada have annually given 200 million, Japan gave nearly 600 million, and European countries have 

disbursed, apparently, $3 billion to South Asia. I encourage our allies to continue that element of burden sharing as we, of course, 

carry the lion’s share of the load when it comes to defense expenditures. 

With that I will see whether there are other members of the subcommittee wishing to make an opening statement. 

Mr. Perry? 

Mr. PERRY. No, thanks. 

Mr. SHERMAN. Mr. Levin? 

Well, with that we will start with our witnesses. We will start 

with Ambassador Alice Wells, the former U.S. Ambassador to Jordan who has headed the South Asia Bureau at the State Department for 2 years as acting assistant secretary. Of course, our committee has been urging for the last over 2 years the administration 

to actually have permanent people in the positions, and I know 

that the party line of the administration is you do not need permanent people, but I think we do. I am not saying that Ambassador 

Wells would not be the perfect permanent assistant secretary, but 

the idea that you can operate the executive branch without appointing people, getting them confirmed, and filling the positions is 

absurd. 

That being said, we will also hear from Ms. Gloria Steele who is 

acting assistant administrator for the Bureau for Asia at the U.S. 

Agency for International Development, USAID. And then, finally, 

we will hear from Ms. Karen Freeman who is assistant to the administrator for the Office of Afghanistan and Pakistan Affairs, 

again, at USAID. 

Ambassador Wells? 
5 

STATEMENT OF ALICE WELLS, ACTING ASSISTANT SECRETARY FOR SOUTH AND CENTRAL ASIAN AFFAIRS, U.S. DEPARTMENT OF STATE 

Ms. WELLS. Chairman Sherman, Ranking Member Yoho, and 

members of the subcommittee, thank you for inviting me to testify 

on the Department’s Fiscal Year 2020 budget request for Afghanistan, Pakistan, and South Asia. 

And before we begin, I want to recognize the servicemen and 

women, the diplomats, the development specialists, who risk their 

lives in service to our country, particularly one Department of 

Commerce employee, Chelsea Decaminada, for her ultimate sacrifice during the Easter Sunday attacks in Sri Lanka. Her commitment to public service is a model for all of us and she served her 

country with distinction. 

I will first talk about our work in Afghanistan and Pakistan and 

then continue by describing the progress we have made on our 

Indo-Pacific Strategy in India and South Asia. Our goal in Afghanistan is a sustainable, political settlement to end the war. Our conditions-based approach is working and the Taliban have come to 

the table. As Secretary Pompeo has testified, the President wants 

to reduce the risks and costs to Americans in a manner that protects our counterterrorism interests. President Ghani shares this 

vision. 

I traveled to Kabul last month where the Afghan Government 

agreed to focus assistance on our highest priorities: peace, self-reliance, and stability. We have been working with other donors to develop a post-settlement economic plan while not losing focus on the 

need to strengthen democratic institutions, include women, and see 

credible Presidential elections in September. This request supports 

those objectives. We recognize a durable peace in Afghanistan requires consultation with Pakistan and Pakistan is encouraging the 

Taliban to negotiate. 

But our relationship with Pakistan is broader than just Afghanistan. We are asking Islamabad to take sustained and irreversible 

actions against terrorists who threaten stability in the subcontinent. One such organization, Jaish-e-Mohammed, precipitated the 

India-Pakistan crisis in February and we have made clear that 

there is no legitimate role for these non-State actors. 

On May 1, we succeeded in listing Masood Azhar, the leader of 

that organization, at the United Nations 1267 Sanctions Committee, an achievement that was 10 years in the making. Our tailored assistance request for Pakistan reflects the relationship that 

is moving from aid to a more mature trade-based partnership. 

From Afghanistan and Pakistan, we turn to South Asia where we 

support India’s rise as the fulcrum of the administration’s Indo-Pacific Strategy. Prime Minister Modi is committed to strengthening 

ties between our two countries and we congratulate him on his decisive election victory. India’s election was free and fair and the 

largest exercise in democracy in human history. 

As the Secretary said at yesterday’s India Ideas Forum, ‘‘It is 

only natural that the world’s most populous democracy should partner with the world’s oldest democracy to maintain our shared vision for the Indo-Pacific.’’ With India at its center, we have made 

good incremental progress in our Indo-Pacific vision since I last tes-
6 

tified to the subcommittee. In July, the Secretary announced $114 

million in economic assistance at the Indo-Pacific Business Forum, 

and in August he announced $300 million in security assistance at 

the ASEAN Regional Forum. 

In November, the Vice President announced the Indo-Pacific 

Transparency Initiative in conjunction with over $400 million in 

democracy rights and governance assistance and we thank Congress for supporting and approving these announcements. The 

Indo-Pacific Strategy is beginning to register successes. In September, the Maldives voted out the preceding corrupt regime that 

was implicated in secretive, unsustainable procurements of debt-financed infrastructure. Maldives instead elected a new president 

who is strengthening his country’s outreach to both India and the 

United States. 

Maldives is a concrete example of how our Indo-Pacific vision can 

inspire engaged voters in civil society to push back against corruption through the ballot box. We are happy to see that Congress 

supports this vision, and we thank you for passing the Asia Reassurance Initiative Act with broad bipartisan support. The President 

was happy to sign. 

To conclude, this has been a year of success in our region and 

our budget request reflects that. While Afghanistan transitions to 

a more sustainable, post-settlement mission, the administration is 

refocusing its assistance request on the Indo-Pacific. I welcome today’s discussion and hope we can agree to support America’s diplomacy in this indispensable region. Thank you. 

[The prepared statement of Ms. Wells follows] 
7 

Statement of Alice G. Wells 

Senior Bureau Official for South and Central Asian Affairs 

Before the House Foreign Affairs Subcommittee for Asia, the Pacific, and 

Nonproliferation 

"U.S. Interests in South Asia and the FY 2020 Budget" 

Thursday,June13,2019 

Chairman Sherman, Ranking Member Y oho- Thank you for inviting me to 

testify before your subcommittees on the Fiscal Year (FY) 2020 budget request for 

Afghanistan, Pakistan, and South Asia. This region, bordering both China and 

Iran, is fundamental to U.S. national security interests. It includes several of the 

world's largest democracies, offers growing opportunities for trade and investment 

benefitting U.S. firms, and is critical for the success of two major Administration 

priorities: the South Asia and Indo-Pacific Strategies. 

Before I begin, I want to recognize the thousands of servicemen and women, 

diplomats and development specialists, and Afghan and international partners, who 

risk their lives every day in service to our country. I want to recognize Chelsea 

Decaminada's selfless sacrifice for her country during the Easter attacks in Sri 

Lanka. A young International Program Specialist of the Department of Commerce, 

her dedication and spirit were a model for all of us, and she served her country 

with distinction. 

In previous testimony, I laid out the goals of the South Asia and Indo-Pacific 

Strategies. The Department has made substantial progress on both. As such, our 

FY 2020 request rationalizes funding for Afghanistan and Pakistan and increases 

funding for India, Maldives, and regional activities in South Asia that will support 

our Indo-Pacific goals. The Department's overall request for these regions is $1.07 

billion, 16% below FY 2018. I will begin by laying out how this budget request 

supports our efforts to end the war in Afghanistan and define a long-term 

partnership for the future. I will describe our efforts to secure Pakistan's support 

for the Afghan peace process and take action against militant groups operating 

from within its borders, and conclude by outlining how our regional and bilateral 

initiatives in South Asia support the Administration's Indo-Pacific vision. 
8 

Afghanistan: Pivot Toward Peace 

The President and the Secretary have made clear our top priority in the 

region is to end the war in Afghanistan through a sustainable political settlement 

that ensures that Afghanistan never again serves as a haven for terrorist attacks 

against the United States or our interests. As we seek an end to the war, we are 

working with the Afghan government to define the parameters of a sustainable, 

long-term partnership with Afghanistan; civilian assistance will continue to play an 

important role. 

In recent discussions in Kabul, the Department of State and the Afghan 

government have agreed to focus U.S. assistance on our highest priorities: 

furthering the peace process, ensuring Afghanistan does not serve as a terrorist safe 

haven, promoting Afghan self-reliance, and maintaining Afghan stability. 

The resources we have requested for FY 2020 will help Afghanistan 

maintain and expand the gains it has made over the last 18 years, including the 

strides made by Afghan women and girls. The smaller request for FY 2020 for 

Afghanistan anticipates this more focused portfolio; however, significant prior year 

resources in the pipeline will allow us to avoid program disruptions as we 

transition to a smaller portfolio and have flexibility to respond to a political 

settlement. We also stand ready to provide humanitarian support as needed, so that 

a natural disaster or a significant return of refugees won't undermine Afghanistan's 

push for peace and stability. 

At the same time, we are intensifying our engagement with pmtners. At last 

year's Geneva Conference on Afghanistan, the United States called on donors to 

begin planning for post-settlement Afghanistan, and several countries have 

responded. At the conference, the European Union announced a new $535 million 

package of assistance for Afghanistan that focuses on support needed to implement 

and sustain a peace agreement. In addition, since the conference, the World Bank 

has been working with major donors and regional partners to develop a postsettlement economic action plan that will help Afghanistan navigate what could be 

a difficult economic period after a political settlement and hopefully speed the 

country's recovery. 

As you have heard before, our assistance is not a blank check. We expect 

the Afghan government will continue on a path of reform, and we will use the 

Afghanistan Compact as a means to monitor progress and discuss new reform 

objectives to tackle Afghanistan's biggest challenges. Afghanistan has made some 

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9 

progress on benchmarks in the Compact, including the conviction of high-level 

officials for corruption, independent management of security for the parliamentary 

elections, and improved government revenue collection. Continued progress is 

needed. 

Pakistan- Transition from Aid to Trade 

Our relationship with Pakistan remains one of our most complex and most 

consequentiaL In line with the Administration's South Asia strategy, our approach 

to Pakistan has focused largely on securing Islamabad's support for the Afghan 

peace process and for Pakistan to follow through on its pledges to take sustained 

and irreversible actions against all militant groups operating from within its 

territory. Our engagement with Pakistan on nonproliferation issues is also cruciaL 

The United States and Pakistan both attach high importance to preventing the 

proliferation ofweapons of mass destruction. We remain concerned, however, 

about Pakistan's development of certain categories of nuclear weapons and 

delivery systems. 

On Afghanistan reconciliation, we recognize that Pakistan has taken steps to 

encourage Tali ban participation in peace negotiations, which has been important to 

the progress we have made thus far. However, there is much more work to be 

done to achieve our ultimate goal of a peaceful Afghanistan free of terrorist 

groups. Pakistani officials are correct when they say that no other country will 

benefit more from a peaceful Afghanistan than Pakistan, and we expect Pakistan to 

continue to play a constructive role in reconciliation efforts. 

On the broader issue of counterterrorism, the Pulwama terrorist attack in 

February that sparked a crisis between India and Pakistan underscored the 

importance and immediate need to halt terrorist activity in the region. We continue 

to urge Pakistan's leaders to make good on their pledges to take sustained and 

irreversible actions against terrorist groups operating within the country's borders, 

which is necessary for the long-term stability and prosperity of the region. In 

recent months, we have seen Pakistan detain some militants and seize assets 

belonging to front organizations raising funds for terrorist groups. While these 

steps are important, they are still reversible. Pakistan must sustain these measures 

and expand upon them, including by prosecuting terrorist leaders. The reality is 

that terrorist organizations such as Lashkar-e-Tayyiba (LeT) and Jaish-eMuhammad (JeM) will continue to pose a grave risk to international peace as long 

as they are able to operate freely in Pakistan. On a multilateral level, we succeeded 

on May l in listing JeM leader Masood Azhar at the UN 1267 Sanctions 

3 
10 

Committee - an achievement 10 years in the making. His listing sends an 

important message that the international community will not tolerate terrorism. 

Sustained progress on these two issues - reconciliation and counterterrorism 

-will lie at the heart of a renewed bilateral relationship. We believe in the 

potential of the U.S.-Pakistan relationship to foster regional stability and economic 

prosperity. U.S.-Pakistani bilateral trade reached an all-time high in 2018, 

exceeding $6.6 billion. U.S. exports to Pakistan rose four percent to $2.9 billion, 

also an all-time high, and the trade deficit sunk to two percent, or $782 million. 

Trade in agriculture was a particularly bright spot. U.S. soybean exports went 

from $0 in 2014 to $689 million in 2018. Pakistan's market of more than 200 

million people, including a growing middle class, provides ample opportunities for 

U.S. trade and investment in Pakistan to grow further. 

This request does not include security assistance funding for Pakistan's 

military. We will focus civilian assistance programming on priority areas such as 

building capacity to deter the proliferation of weapons of mass destruction; 

building law enforcement capacity to fight crime and terrorism; supporting 

economic development that can expand U.S. business ties with Pakistan; 

addressing communicable diseases that threaten both our countries; supporting 

civil society and religious freedom; and working with Pakistan to ensure that 

communities in the Afghanistan-Pakistan border region are stable and cannot be 

used as a base by terrorists. The request reflects the trajectory of our relationship 

away from an assistance focus and toward a more trade-based one, and the bright 

economic future we believe a more robust U.S.-Pakistan partnership can bring for 

Pakistan and the region, should Pakistan follow through on its pledges to fight 

terrorism and promote peace in Afghanistan. 

The Indo-Pacific Strategy: 

In the Indo-Pacific, the Administration is committed to ensuring a rulesbased order, with free and open commerce, freedom of navigation, democracy, and 

the peaceful resolution of disputes. These principles have helped to improve living 

standards for half of the world's population living in the Indo-Pacific region, and 

they remain critical for the region's long-term future. Seventy percent of global 

commerce passes through the oceans of the Indo-Pacific, and the United States will 

protect its seas and skies through our diplomatic engagement, development efforts, 

and security cooperation. At the same time, the United States, alongside India, 

Japan, Australia, and other trusted allies and partners, will support the political and 

economic autonomy oflndo-Pacific countries to ensure they can chart their own 

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11 

path to freedom and prosperity, as satellites to none. We cannot allow China, or 

any other country, to subvert our partners through unsustainable infrastructure 

projects that push economies into unsustainable debt, or by contributing to an 

erosion of transparency and democratic norms. 

Since I last testified, Congress demonstrated its bipartisan support for this 

Indo-Pacific vision by passing its Asia Reassurance Initiative Act. With that Act, 

the Administration stands together with Congress by signaling to the region that 

America, itself an Indo-Pacific nation, is committed to promote mutual prosperity. 

The Department requests $468 million for South Asia, which increases regional 

economic and security assistance, as well as development funding for India and 

Maldives. This more than doubles our FY 2019 request. We request that Congress 

support the Department's new security cooperation program in South Asia, the Bay 

of Bengal Initiative, with $30 million in foreign military financing that will build 

maritime and border security capacity for Sri Lanka, Bangladesh, and Maldives. 

We also request $64 million for regional activities to support raising infrastructure 

standards, supporting regional energy and digital connectivity, and bolstering cyber 

security. The Department continues to explore options for providing additional 

resources to support the Indo-Pacific Strategy in line with this request, and if 

available we intend to return to Congress to discuss them. 

India: 

[Insert quote from Secretary's June 12 prepared remarks]. 

Our request for India reflects its pre-eminent role in the Administration's 

Indo-Pacific vision and our two countries' commitment to shared principles and 

values. In May, India held the largest election in the history of the world. We 

congratulate India on its free and fair election, and Prime Minister Modi on his 

decisive victory. In his congratulatory call to the Prime Minister, President Trump 

reiterated his commitment to strengthening U.S.-India ties. In doing so, we will be 

building on several shared successes in the past year. 

We launched the 2+2 ministerial dialogue last September, for example, and 

signed a Communications Compatibility and Security Agreement (COMCASA) to 

improve defense cooperation and interoperability. The Department of Commerce 

granted strategic trade authorization tier 1 status enabling American companies to 

export more high-technology items under a streamlined licensing process. The 

United States is also planning our first ever tri-service exercise with India later this 

year, which will involve all of our respective military services. 

5 
12 

We're currently planning for the next 2+2later this year, which will provide 

an important opportunity to deepen further our security and regional cooperation, 

including on pending defense deals, maritime security, and additional defense 

enabling agreements. 

India's role in the Indo-Pacific is underpinned by its large and growing 

economy. Our two-way trade with India is rapidly increasing, expanding 12.6 

percent last year to $142 billion. The U.S. goods and services trade deficit with 

India was $24.3 billion in 2018, down 11.2 percent from 2017. We want to 

continue to grow our trade relationship with India, but in a fair and reciprocal 

manner. Tariff and non-tariffbarriers have been the subject oflongstanding 

concern, and we are working with India to address market access challenges. 

In our engagements with India, we will continue to highlight the importance 

of preserving a diverse and inclusive society. India's constitution provides strong 

protections for fundamental freedoms, including religious freedom. We look to 

India's democratically elected leaders and institutions to swiftly condemn acts of 

violence on the basis of religion and hold perpetrators accountable. This will help 

fmiher India's security and economic interests and strengthen our bilateral 

relationship. We took note of PM Modi's comments following his reelection 

highlighting his government's commitment to inclusiveness and that " ... a 

representative of the people cannot show favoritism towards anyone. We have to 

work for those who supported us and also those who did not in these elections with 

the same spirit." 

Sri Lanka, Bangladesh, Nepal, Maldives, and Bhutan: 

Beyond India and our regional Indo-Pacific strategy, the Department is also 

increasing bilateral engagement with other South Asian partners. Secretary 

Pompeo met in recent months with his counterparts from Bangladesh, Sri Lanka, 

Nepal, and Maldives, stressing the importance the United States places on their 

political and economic autonomy and encouraging each to share in our IndoPacific vision. 

Though we have seen progress in implementing this vision for the region, 

political and economic freedom are not the only concerns for South Asia. On 

Easter Sunday, ISIS-inspired terrorists targeted churches and hotels throughout Sri 

Lanka with a series of coordinated suicide attacks. Our condolences go out to the 

258 victims who died in those attacks, including five Americans, as well as many 

6 
13 

others who were injured. Again, we ask the subcommittees to remember, forever, 

Chelsea Decaminada, who sacrificed everything to strengthen the partnership 

between our two countries. 

We stand with Sri Lanka in investigating these attacks and strengthening its 

counterterrorism capabilities. The Federal Bureau of Investigation quickly 

deployed at the request of the Sri Lankan government, and helped dismantle the 

local terrorist organizations that carried out these attacks. Now we are assessing 

ways in which we may support the Sri Lankan government while it re-orients its 

security apparatus toward addressing international terrorism, and we will continue 

to impress upon Sri Lanka the need to respect human rights, including for members 

of minority groups, refugees, and asylum seekers. Similarly, as Sri Lanka heads 

into national elections, the United States will continue to urge that Sri Lanka 

maintain progress on post-conflict reconciliation, justice, and accountability, and 

adhere to its international human rights obligations and commitments. Our request 

also provides economic assistance to help insulate Sri Lanka from dependency and 

economic manipulation by other states. 

A populous, quickly developing country at the crossroads of South and 

Southeast Asia, we propose for Bangladesh the largest civilian assistance request 

in the Indo-Pacific region. Moreover, Bangladesh is an increasingly important 

market for U.S. companies, with nearly 170 million people and sustained annual 

GDP growth of over 6%. At the same time, the Department continues to support 

civil society and labor groups throughout Bangladesh with diplomatic engagement 

and foreign assistance. We have publicly noted concerns regarding Bangladesh's 

December 30 election and the closing of democratic space for political opposition, 

media, and civil society. We raise our concerns with the Bangladeshi authorities at 

each opportunity. 

Bangladesh continues to host over one million Rohingya refugees, providing 

shelter and support to a population that escaped ethnic cleansing from neighboring 

Burma. The Department's assistance request for Bangladesh includes substantial 

funding for refugee hosting communities. The Department of State and USAID 

have provided more than $494 million in humanitarian assistance to support 

victims of the crisis since August 2017, of which more than $451 million was for 

the Rohingya refugee and host community response in Bangladesh. This request 

will complement our humanitarian assistance and help support those in Bangladesh 

whose livelihoods and communities have been affected by the immense influx of 

refugees. 

7 
14 

For Nepal, we have the opportunity to advance strategic priorities as muchneeded political stability takes root. As we look for opportunities to deepen U.S.-

Nepal relations, we have encouraged Nepal to take on a more proactive role in the 

Indo-Pacific region, and urge it to enforce UN Security Council Resolutions 

related to North Korea, among other priority global issues. The FY 2020 request 

will enable the United States to advance our mutual interest to help Nepal protect 

its sovereignty, enhance its security, and pursue prosperity. 

Maldives is testament to the power of a free, open, and rules-based IndoPacific region. The Department commends the election of President Solih on a 

platform of transparency and anti-corruption. President Solih has taken aim at the 

preceding regime's secretive procurements of debt-laden, vanity infrastructure, and 

has strengthened his outreach to the United States and India. The Department and 

USAID worked with Congress to secure additional funding to support his reform 

agenda, including in public financial management, anti-money laundering, 

counterterrorism cooperation, and rule of law reform. Maldives is an exciting new 

Indo-Pacific partner, and an example of how engaged voters and civil society can 

push back against conuption and authoritarian tendencies in favor of transparency 

and human rights. 

Although we do not have a request for Bhutan or official diplomatic 

relations, we maintain warm informal ties that continue to grow each year. Bhutan 

shares our views on dynamics in the Indo-Pacific and is aligned with our objectives 

in the region. We commend Bhutan for its successful democratic election in 

2018-its third since voluntarily transitioning from a monarchy-and applaud the 

country's commitment to the Indo-Pacific goals of transparency, accountability, 

and strong democratic institutions. 

Conclusion: 

Building on substantial progress toward peace, countertenorism, trade, and 

transparency, our assistance requests for Afghanistan, Pakistan, and South Asia are 

undergoing an important transition. While Afghanistan transitions to a more 

sustainable, post-peace, consolidated counterterrorism platform, and while 

Pakistan's budget re-emphasizes a relationship built on trade, not aid, the 

Administration is refocusing our assistance request on the Indo-Pacific, shoring up 

key partners and providing them the tools to protect their sovereignty and pursue 

democratic governance and private sector-led growth. We welcome an ongoing 

discussion with Congress and your subcommittee on how best to support American 

diplomacy and development efforts in this indispensable region. 

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15 

Mr. SHERMAN. Ms. Freeman? 

STATEMENT OF KAREN FREEMAN, ASSISTANT TO THE ADMINISTRATOR FOR THE OFFICE OF AFGHANISTAN AND PAKISTAN AFFAIRS, UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT 

Ms. FREEMAN. Good morning, Chairmen Deutch and Sherman, 

Ranking Members Wilson and Yoho, and members of the subcommittee. Thank you for having me here today to discuss the administration’s Fiscal Year 2020 budget request for the U.S. Agency 

for International Development’s assistance priorities for Afghanistan and Pakistan. 

As a career Foreign Service officer, it has been my honor to serve 

my country and a privilege to testify before you today alongside my 

esteemed colleagues, Ambassador Alice Wells and Assistant Administrator Gloria Steele. Like those before me, I would like to thank 

our colleagues, the women and the men in our military who have 

served in Afghanistan, who in some cases have given their lives. 

And I would also like to express my appreciation to their families. 

Our gratitude also goes to the brave American civilians who have 

served in both Afghanistan and Pakistan, USAID’s Foreign Service 

officers, development professionals, and Foreign Service nationals, 

diplomats at the United States Department of State, and the men 

and women working shoulder to shoulder with us, implementing 

U.S. programs in the region and around the world. I have been 

proud to have served with these people over the past 30 years and 

they have my deepest respect. 

Under USAID Administrator Mark Green’s leadership, our agency’s mission is to support our partners to become self-reliant and 

capable of leading their own development journeys. A key stepping 

stone on this path to self-reliance is ensuring governments are responsive and accountable to their citizens and to the international 

community. We make progress toward this by increasing private 

sector economic growth, strengthening democratic governance, and 

enhancing health and education outcomes. 

But we must also reduce the reach of conflict and counteract the 

drivers of violence and instability. Specifically, USAID has three 

strategic development objectives in each country. In Afghanistan, 

accelerating private sector-driven, export-led economic growth including the growth of high value agriculture; sustaining and advancing social gains in health, education, and women’s opportunities; and increasing the Afghan Government’s accountability to its 

citizens including anticorruption in government and elections—pardon me. 

In Pakistan, our objectives are helping to consolidate Pakistan’s 

civilian government control on the border with Afghanistan, particularly in the newly merged districts of Khyber Pashtunkhwa, 

supporting civil society’s efforts to build a more tolerant Pakistan, 

and promoting private sector-led economic growth including creating opportunities for U.S. businesses. The President’s Fiscal Year 

2020 budget request for assistance to Afghanistan and Pakistan reflects our Nation’s efforts to advance our national security interests 

and increase regional stability. 
16 

The Fiscal Year 2020 request for USAID in Pakistan includes 48 

million in economic support funds. It is anticipated that our request for 400 million for Afghanistan will be adjusted downward as 

a result of recent program reviews. As Ambassador Wells has outlined, this has been a year of reflection on the appropriate balance 

of resources both human and financial in Afghanistan and Pakistan. Both missions are undergoing intense scrutiny and consultation with our partners, the interagency, and yourselves here on 

Capitol Hill. The lower request continues a downward trend as our 

assistance portfolios mature, adjust, and adjust toward a more sustainable level. 

Although the 2020 request is reduced in comparison to Fiscal 

Year 2019, both missions will continue to implement a significant 

suite of assistance programs which are strategic and long-term and 

incorporate our partners, other donors and the private sector, and 

of course the countries themselves, as we engage in dialog on encompassing their aspirations and our comparative advantages. 

Experience shows that women’s participation in development is 

a key driver for sustainable outcomes including enhanced economic 

growth, improved health, education, and community cohesion and 

a reduction of conflict. Support for Afghan and Pakistani women is 

and will remain an important focus for USAID. Afghan women in 

particular have achieved much with the continuing support from 

the American people, and furthering these gains is a cornerstone 

of USAID’s efforts. 

Again, thank you for inviting me here today to discuss USAID’s 

programs in Afghanistan and Pakistan. I look forward to answering your questions. 

[The prepared statement of Ms. Freeman follows:] 
17 

Statement for the Record United States Agency for International Development 

Karen Freeman, Assistant to the Administrator and Director of the Office of Afghanistan 

and Pakistan Affairs 

Before the House Foreign Affairs Committee 

"U.S. Interests in South Asia and the FY 2020 Budget Request" 

Thursday, June 13, 2019, 9:30a.m. 

Chairman Sherman, Ranking Member Yoho, and Distinguished Members of the Subcommittee: 

thank you for inviting me here to discuss the Administration's Fiscal Year 2020 Budget Request 

for the U.S. Agency for International Development's (USAID) assistance programs in 

Afghanistan and Pakistan. It is an honor to testify before you and a pleasure to be here alongside 

my colleagues, Principal Deputy Assistant Secretary, Ambassador Alice Wells, and Acting 

Assistant Administrator Gloria Steele. 

I would like to begin by thanking our colleagues, the brave women and men in our military who 

have served in Afghanistan- who, in some cases, have given their lives- and their families. 

Our gratitude also goes to the American civilians who serve in both Afghanistan and Pakistan: 

USAID's Foreign Service Officers and development professionals; diplomats of the U.S. 

Department of State; colleagues from across the interagency, and, the men and women who are 

working shoulder to shoulder with us to implement U.S. programs in the region. I would also 

like to thank the hundreds of local Afghan and Pakistani citizens who work- and sacrificealongside us to ensure their countries' futures arc ones filled with increased access to 

opportunities, enhanced stability, and a hopeful tomorrow for their children. 

As USAID Administrator Mark Green has stated, USAID's goal is to end the need for foreign 

assistance. Our Agency's objective is to support partners to become self-reliant and capable of 
18 

leading their own development journeys. A key stepping stone on the path to self-reliance is 

ensuring governments are responsive and accountable to their citizens, and to the international 

community. We make progress toward this by increasing private-sector-led economic growth, 

strengthening citizen-responsive democratic governance and enhancing health and education 

outcomes, but we must also reduce conflict and counteract the drivers of violence, instability, 

and other security threats. 

The President's FY 2020 Budget Request for assistance to Afghanistan and Pakistan reflects our 

nation's efforts to advance our national security interests and increase regional stability. These 

budget levels continue a downward trend as our assistance portfolios mature towards more 

sustainable levels. Although the FY 2020 request is reduced in comparison to FY 2018, both 

Missions will continue to implement a significant suite of assistance programs. 

The FY 2020 request aligns with the Administration's South Asia Strategy. Released in 2017, it 

lays out the United States' national security and foreign policy priorities in the region and 

informs USA !D's management of civilian assistance in Afghanistan and Pakistan. Our Missions 

in Kabul and Islamabad, in collaboration with the Office of Afghanistan and Pakistan Affairs, 

have developed Country Development Cooperation Strategies, or CDCSs, that directly align 

USAID's programming within the South Asia Strategv. 

For Pakistan, the FY 2020 request includes $48 million in Economic Support and Development 

Funds (ESDF). A more stable, secure, prosperous Pakistan that counters violent extremism in its 

territory and plays a constructive role in the region is in both our countries' interests. USAID's 

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19 

FY 2020 civilian assistance request for Pakistan will complement Pakistan's own domestic 

development efforts and support U.S key interests: supporting the newly merged Districts of 

Khyber-Pakhtunkhwa (KP) formerly called the Federally Administered Tribal Areas (FATA), 

working with Pakistan's civil society to promote tolerance and combat drivers of extremism, and 

promoting private sector-led economic growth. 

The FY 2020 request represents significantly lower civilian assistance levels compared to 

previous appropriations. This reflects the outcome of a presidentially determined review of all 

assistance to Pakistan. Nonetheless, civilian assistance will continue because simply put, 

Pakistan's trajectory matters to the United States. While our governments do not always see eyeto-eye, civilian assistance can both help shape that trajectory and support U.S. security and 

economic interests. 

The FY 2020 request allows us to maintain an effective and appropriate relationship with 

Pakistan that addresses both national security and economic objectives. The FY 2020 request for 

USAID aligns with our Pakistan CDCS, and supports the following core U.S. Government 

objectives in Pakistan: I) helping consolidating Pakistan's civilian government control on the 

border with Afghanistan, particularly in newly merged Districts ofKP; 2) supporting civil 

society's efforts to build a more tolerant Pakistan; and 3) promoting private sector led economic 

growth, including creating opportunities for U.S. businesses. 

For Afghanistan, the FY 2020 request is $400 million in ESDF, guided by the core priorities of 

peace, security, and reconciliation; free and fair elections; private-sector competitiveness; and 
20 

Afghanistan's path to self-reliance. Civilian assistance will help the Government of Afghanistan 

(GoA) to complete essential reforms and become more responsive to its citizens. It is anticipated 

that our request for $400 million for Afghanistan will be adjusted downward as a result of a 

recent program review. 

FY 2020 resources for USAID will continue our focus on accelerating private-sector-driven and 

export-led economic growth, including the growth of high-value agriculture; sustaining and 

advancing social gains in health, education, and women's opportunities; and increasing the 

Afghan government's accountability to its citizens. These priorities underpin our CDCS goal, 

which is for Afghanistan to become a more inclusive, economically viable, and self-reliant 

country with which the U.S. Government can better partner in our National Security Strategy. 

Support for Afghan women will remain an impotiant focus for USA !D. Afghan women's rights 

and opportunities have advanced with the continued support from the American people, and 

expanding these gains is a cornerstone ofUSAID's strategy. USAID's commitment to sustain 

women's programming reflects a goal of increasing women's participation in civil society and 

the peace process, the economy, and higher education. 

A recent Embassy Kabul-led Afghanistan assistance review directed all agencies to focus on 

three priorities: suppmi the Afghan peace process; preserve the Afghan state's stability 

(including support for citizen-responsive, democratic governance to guard against conditions that 

enable terrorist safe havens); and assist Afghanistan's transition to self-reliance by promoting 

export-led, market-driven, private sector growth, while providing support for civil society. We 

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21 

recognize that an inclusive peace agreement and an end to conflict are crucial for Afghanistan's 

long-term prosperity and self-reliance. USAID's FY 2020 budget request will continue to 

support the advancement of these efforts. 

USA !D's CDCS aligns with these objectives by focusing on: accelerating private sector-led 

economic growth in key population centers; advancing gains made over the past 18 years, 

particularly for women and girls, in education, and health; and increasing accountability between 

the Afghan government and its citizens through improved service delivery, reduced corruption in 

key ministries, and credible elections. U.S. Government civilian assistance helps create the 

conditions necessary for peace and self-reliance by focusing on long-term, broad based 

development and reinforcing efforts to reduce violence and stimulate a political settlement to end 

the conflict with the Taliban. In addition, the U.S. Government also leverages other donor 

commitments and closely coordinates with our Afghan partners. 

Over the past several years, with vital support from Congress, we have taken clear measures in 

Afghanistan and Pakistan to ensure our assistance promotes stable, inclusive, and increasingly 

prosperous countries. We appreciate Congress' recognition that USAID's development programs 

are critical components for achieving U.S. national security objectives, and that the stability our 

programs help countries achieve will ultimately improve the prosperity of the United States, 

Afghanistan, Pakistan, and our regional partners. 

USAJD is committed to investing development assistance strategically in Afghanistan and 

Pakistan to support the Administration's South Asia Strategy. U.S. assistance remains a critical 
22 

tool to promote regional stability, and more broadly, U.S. national security. We will continue to 

make these important contributions while also safeguarding taxpayer funds. It is an honor to 

discuss with you today what USAID is doing in that regard. 

Thank you and !look forward to answering any questions you may have. 

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23 

Mr. SHERMAN. Ms. Steele? 

STATEMENT OF GLORIA STEELE, ACTING ASSISTANT ADMINISTRATOR FOR THE BUREAU FOR ASIA, UNITED STATES 

AGENCY FOR INTERNATIONAL DEVELOPMENT 

Ms. STEELE. Chairman Sherman, Ranking Member Yoho, distinguished subcommittee members, thank you for inviting me to testify on USAID’s role in advancing U.S. policy priorities in South 

Asia, including the President’s vision for a free and open Indo-Pacific, the South Asia Strategy and USAID’s journey to self-reliance. 

First, I will speak to the President’s vision for a free and open 

Indo-Pacific region. The Fiscal Year 2020 budget request for 

USAID’s development assistance in South Asia is $332 million. 

This request includes support for USAID’s continued leading role 

in advancing the Indo-Pacific Strategy in three primary areas. 

First is strengthening democratic systems, which are critical for 

fostering good governance and transparency. Second is leveling the 

playing field for the participation of legitimate private enterprises, 

especially in the areas of infrastructure and digital economy. And 

the third is improving the management of natural resources, particularly in energy, which are important for sustained, long-term 

growth. 

Second, the South Asia Strategy. The South Asia Strategy recognizes the strategic importance of the region for stability in Afghanistan. The request supports continued USAID engagement important to this objective. For example, deepening our strategic partnership with India, which shares economic and humanitarian interests in Afghanistan. 

And third, the journey to self-reliance. In the words of USAID 

Administrator Mark Green, the ultimate goal of development assistance must be to work toward the day when it is no longer necessary. He has said, and I quote, ‘‘At the heart of our work is the 

core belief that each country must lead its own development journey.’’ 

We call the path to get there the journey to self-reliance. In support of this, we focus on building capacity and commitment of countries to drive their own development. This includes commitments to 

open and accountable governance and inclusive growth and it includes the capacity to mobilize funds domestically for their development. With Fiscal Year 2020 resources we will continue to strategically focus our efforts toward achievement of this goal. 

I will next provide brief country highlights. For Bangladesh, our 

request includes resources for lifesaving assistance to Rohingya refugees and for ramping up our support to impacted host communities. In addition, our request supports programs aimed at restoring democratic processes, political pluralism and good governance, 

improving the business-enabling environment and agricultural 

economy, strengthening the conservation of targeted ecosystems in 

order to mitigate the impact of natural disasters, and attracting renewable energy investments. Our program supports Bangladesh in 

its goal of achieving middle income status by 2024. 

For India, our budget request supports India’s integral role to advancing both a free and open Indo-Pacific region and a stable South 

Asia. For example, India is central in our efforts to facilitate infra-
24 

structure and energy investment and connectivity across South 

Asia. The request includes new funds for regional energy activities 

that contribute to advancing the President’s vision of a free and 

open Indo-Pacific. 

It also supports Asia EDGE, a U.S. Government initiative to promote energy security and expand energy access across the Indo-Pacific region. The request will also enable USAID to leverage domestic resources, including from India’s robust private sector that is legally mandated to contribute to social causes in ways that help 

India better respond to its lingering development challenges, including poor health conditions, inadequate resources related to 

water and sanitation, and air pollution. 

For Nepal, despite steadfast progress the country remains vulnerable to unsustainable debt, weak institutional capacity and future disasters. Following on USAID’s support for the historic 2017 

elections, the request will allow USAID to address emerging challenges to Nepal’s transition to federalism. Our request also supports efforts to improve the country’s weak business regulatory environment, advance a competitive market economy, and address 

health, food security, and education challenges. 

For Sri Lanka, recent political turmoil compounded by the April 

terrorist attacks, growing ethnic religious nationalism, and slow 

progress and commitment to transitional justice and ethnic reconciliation exacerbate the country’s development challenges. With 

elections on the horizon for late 2019 and early 2020, USAID will 

use Fiscal Year 2020 resources to bolster democratic governance, 

foster ethnic reconciliation, and enhance fair opportunities for 

trade and competitiveness. Assistance will also provide the Government of Sri Lanka with technical support for infrastructure development and for fostering the rule of law. 

And, finally, for the Maldives, Fiscal Year 2020 resources will enable USAID to advance U.S. interests and seize burgeoning opportunities presented by the country’s democratic opening. We will 

also use Fiscal Year 2020 resources to support the government’s request for assistance in public financial management, in countering 

terrorism, and in managing its natural resources. 

In closing, South Asia is a strategically important region for the 

United States. With this request, USAID will continue efforts vital 

to increasing partner countries’ self-reliance and advancing a free 

and open Indo-Pacific region. Thank you. 

[The prepared statement of Ms. Steele follows:] 
25 

Gloria Steele 

US AID Acting Assistant Administrator for Asia 

Honse .Foreign Affairs Subcommittee on Asia, the Pacific, and Nonproliferation 

"U.S. Interests in South Asia and the FY 2020 Budget" 

June 13, 2019 

Chairman Sherman, Ranking Member Yoho, and Distinguished Members of the Subcommittee: 

Thank you for inviting me to testify on the vital role of the United States Agency for 

International Development (USAID) in advancing U.S. foreign policy priorities in South Asia. It 

is an honor to testify before this committee. 

USAlD's development and humanitarian assistance is key to achieving prosperity and stability 

for our partner countries, as well as the United States. The President's Fiscal Year (FY) 2020 

budget request for USAID's development assistance in South Asia is $332.3 million, which 

represents a 73 percent increase over FY 2019's request. This request supports USA !D's 

programs in Bangladesh, India, Nepal, Sri Lanka, and the Maldives. 

Advancing the President's Vision of a Free and Open Indo-Pacific Region 

South Asia, a cornerstone of the President's vision to advance a free and open Indo-Pacific in 

which all nations are independent, strong, and prosperous, is a region of great strategic 

importance. According to the World Bank, South Asia is the world's fastest growing region and 

is projected to remain so through 2021, with India and Bangladesh both averaging real GDP 

growth rates above 7 percent. Yet South Asia's continued growth-and the ability of U.S. 

companies to compete in the Indo-Pacific region freely and fairly-is hindered by deficits in 

governance, rule of law, and infrastructure. 

With FY 2020 funds, USAID will continue to play a leading role in advancing the United States' 

whole-of-government approach to realizing a free and open Indo-Pacific region. Together with 

our U.S. Government partners, and in coordination with like-minded donors, USAID supp01is 

interagency initiatives and key bilateral and regional efforts focused in three primary areas. 

First, to advance the President's vision, we are helping to strengthen democratic systems that are 

critical for peace and prosperity. Foundational to a free and open Indo-Pacific region is the 

ability of governments to create and sustain the conditions needed to attract greater private 

investment and withstand foreign pressure--conditions that are transparent, that adhere to 

international rules and standards, and that uphold human rights, fundamental freedoms, and 

democratic values. The Agency is a leader in the Indo-Pacific Transparency Initiative, which 

promotes sound, just, and responsive governance through strengthened democratic institutions, 

processes, and principles in Asia. 

Second, we are helping to unlock private enterprise-led economic growth, which is key to 

sustaining and accelerating development progress. To do this, we help advance reforms to 

governing laws, regulations, and policies to ensure fair and open market competition and level 

the playing field for legitimate players, including the U.S. private sector. Our leading role in U.S. 
26 

Government initiatives, including the Infrastructure Transaction and Assistance Network and the 

Digital Connectivity and Cybersecurity Partnership, drives private sector engagement in the 

development of sustainable infrastructure and the digital economy-both powerful accelerants of 

growth. 

Third, we are helping to improve natural resource management. The Indo-Pacific region is rich 

in forests, fisheries, and other natural resources important to the region's long-term growthincluding vital energy sources. Yet their sustainability is threatened by irresponsible 

infrastructure development, resource extraction that ignores environmental and social safeguards, 

and high rates of transnational environmental crime. USAID helps strengthen applicable laws, 

promotes the adoption and enforcement of international environmental standards, and fosters 

private sector engagement on sustainable supply chains, energy sector transformation, and 

safeguards. We play a leading role in Asia EDGE (Enhancing Development and Growth through 

Energy), a U.S. Government initiative that is increasing energy security and expanding energy 

access and connectivity across the Indo-Pacific region. 

South Asia Strategy 

South Asia is also strategically important to the President's strategy for stability in Afghanistan. 

USAID's country partnerships and engagement in the region help advance overarching U.S. 

objectives in this regard. This includes our deepening strategic partnership with India, which 

shares economic and humanitarian interests in Afghanistan, where India is the fifth largest donor. 

For example, in support of regional economic connectivity, this past fall, US AID sponsored the 

second annual India-Afghanistan trade and investment show, which both doubled attendance and 

the total value of deals negotiated compared to its inaugural year. With FY 2020 resources, we 

will continue advancing our efforts to bolster India's role as a regional-and global-leader. 

USAID's Journey to Self-Reliance 

At USAID, our ultimate goal for our partner countries in South Asia and around the world is to 

see them progress from being aid recipients, to partners, to fellow donors. We look forward to 

the day when foreign assistance is no longer necessary. We call the path to get there the "Journey 

to Self-Reliance." 

In support of partner countries' progression toward self-reliance, USAID is realigning and 

reorienting its policies, strategies, and programmatic practices to improve how it partners with 

countries to develop their capacity and commitment to drive their own development. This 

includes commitments to open and accountable governance, inclusive growth, and the capacity 

to mobilize development funds domestically and through foreign direct investment. It also 

includes an emphasis on unlocking private enterprise-driven development to sustain progress. 

This approach to development-which prioritizes fostering stable, resilient, prosperous, and selfreliant countries-is good for our partners around the world, our nation's security, and the 

American taxpayer. With FY 2020 resources, we will continue to focus our efforts strategically 

where we can have maximum impact toward this goal. On that note, I will next provide brief 

country overviews and highlight our strategic focus areas. 

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Bangladesh 

Bangladesh is a key Indo-Pacific partner in South Asia. With nearly one in five people living in 

poverty and a regression in its democratic development, the country faces immense hurdles as it 

aims to achieve middle-income country status by 2024. USAID programs focus on democracy, 

human rights, and governance; economic growth, food security, and trade; health and basic 

education; and environmental resilience and energy. We also continue our assistance to help 

some of the nearly one million Rohingya refugees in Cox's Bazar and Bandarban districts, as 

well as host and impacted communities. 

In line with the President's vision for a free and open Indo-Pacific region, and advancing 

USAID's Journey to Self-Reliance, we are focused on strengthening democratic systems in 

Bangladesh. The FY 2020 budget request includes $5.0 million for Good Governance. 

Programming supports the Indo-Pacific Transparency Initiative by promoting democracy, 

governance, and the rule of law, including improving access to justice and the delivery of legal 

aid in the formal justice system, particularly for underserved communities. 

To restore democratic processes and political pluralism, programs will promote the democratic 

development, professionalism, and peaceful cooperation of political parties. Funds will also 

support labor rights and related reforms as well as strengthen space for civil society and media to 

act as a positive force in Bangladesh's democratic development. These activities both uphold 

human rights and promote increased U.S. investment in Bangladesh, as well as support 

Bangladesh in its goal of achieving middle-income country status by 2021. 

We are focused on unlocking private enterprise-led economic growth. In support of this, the FY 

2020 request includes $7.5 million for Private Sector Productivity efforts. Programs will 

enhance the growth of Bangladesh's small and medium enterprises, including through the 

expansion of private sector partnerships and improvement of the business enabling environment. 

Key to this effort is boosting the agricultural economy. One-third of the FY 2020 ESDF request 

for Bangladesh will go toward improving agricultural market systems and nutrition through 

better farming practices, research, infrastructure, crop diversification, employment and 

entrepreneurship activities, and trade. This is a critical component of the U.S. Global Food 

Security Strategy. 

We arc also focused on improving natural resource management, which is especially important 

given the fact that Bangladesh is one of the most disaster prone countries in the world. 

Bangladesh is home to globally significant landscapes, including the Sundarbans, the world's 

largest mangrove forest. FY 2020 resources will help strengthen the conservation of key targeted 

ecosystems and support the establishment of a publicly accessible forest monitoring and 

inventory system and other sustainable landscapes interventions. Resources will also support 

USA !D's continued assistance to the Government of Bangladesh to develop policies that 

encourage domestic and foreign investment in the renewable energy sector. 

With regard to the influx of Rohingya refugees, and in recognition of the likelihood that their 

stay in Bangladesh will be protracted, USAID is pivoting to meet the needs of impacted 

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28 

communities in Cox's Bazar and Bandarban districts. Funding will support a multi-sector, 

integrated effort to improve local service delivery capacity, including water supply and 

sanitation, livelihood opportunities, and social cohesion. Funds will support marginalized 

children in Cox's Bazar by increasing their opportunities for learning and supporting the 

resilience of school communities. These new investments will complement ongoing efforts to 

improve disaster preparedness by training local communities and government officials. In 

addition, USAID is rehabilitating and constructing cyclone shelters to mitigate potential impacts 

during the May-to-October cyclone and monsoon seasons. With USAID's Office of Foreign 

Disaster Assistance support, our partners have completed repairs to 40 cyclone shelters in Cox's 

Bazar as of early April 2019; in total, USAID partners plan to repair or refurbish more than !50 

cyclone shelters, and by 2024, construct at least 20 new multi-purpose shelters. 

India 

In recognition oflndia's integral role in both the President's vision for a free and open IndoPacific region and a stable South Asia, the FY 2020 request includes an increase for India over 

both the FY 2018 and FY 2019 requests. Resources will bolster India's continued emergence as a 

regional and global leader and strong strategic partner in advancing our shared objectives for 

peace and security in South Asia and the broader Indo-Pacific region. The request enables 

USAID to leverage domestic resources-including from India's robust private sector that is 

legally mandated to contribute to social causes-in ways that help India better respond to its 

lingering development challenges, including health and air pollution. 

India plays a central role in effmis to facilitate energy and infrastructure investment and 

connectivity across the region. This is particularly critical in South Asia, where intra-regional 

economic activity remains roughly 5 percent of South Asia's total trade and holds tremendous 

potential to spur growth. The FY 2020 request includes $20 million in new funds for Modern 

Energy Services, which will support regional energy activities that contribute to the goals of Asia 

EDGE to promote energy security and expand energy access. It will also build on the successes 

of the South Asia Regional Initiative for Energy (SARI/E) to expand the market for, and 

accelerate the deployment of, new and renewable energy technologies in South Asia. Activities 

will also create an enabling environment for an expanded regional power market, accelerated 

deployment of new and advanced energy efficiency technologies throughout South Asia, 

improved and efficient performance of utilities, and enhanced private sector pmiicipation in the 

region. In addition to energy connectivity, funding will foster natural resource security, disaster 

risk reduction, digital connectivity, and cyber security in the region. 

FY 2020 funding will also support the Government of India's capacity and commitment to move 

the country further along its Journey to Self-Reliance. US AID has helped India overcome some 

of the country's most pressing development needs, such as acute food insecurity, while also 

strengthening the government's capacity to manage and implement its development agenda. 

Despite these achievements, the country is home to the world's highest burden of tuberculosis 

(TB) cases, and 20 percent of global maternal and child deaths. Working closely with the 

Government of India, the private sector, and civil society to identify, pilot, and scale up costeffective innovations and best practices, funding will target the most important issues 

constraining India's ability to address health concerns and social inequality. Our approach is 

4 
29 

concentrated, strategic, and focused on technical assistance that mobilizes India's robust 

domestic resources. FY 2020 funds will support the globally shared goals of preventing child and 

maternal death and combating infectious disease threats, plus expanding access to clean water 

and sanitation. Under USAID's new Global Accelerator to End TB, our Mission in India has 

already started to play a prominent role in leading both private sector investments and local 

partnerships to combat TB. This emphasizes USAID's strong commitment to India's goal to be 

TB-free by 2025, a highly applauded commitment made by Prime Minister Narcndra Modi. 

USA !D's Mission in India currently programs most of the Congressional earmark for Tibetan 

communities in India and Nepal, which focuses on strengthening the self-reliance and resilience 

of Tibetan communities in South Asia through sustainable livelihoods improvement and 

strengthened local institutions, equipping them to become effective leaders and maintain the 

vitality of their communities and institutions while sustaining their unique identity and culture. 

Nepal 

US AID assistance will support Nepal's transformation as a more capable, self-reliant partner that 

asserts its democratic and economic independence and promotes greater stability in the lndoPaci fie region. Although the country continues to make steadfast progress in overcoming its 

development challenges, including a decade-long insurgency that ended in 2006 and earthquakes 

that killed over 9,000 people in 2015, Nepal remains vulnerable to unsustainable debt, weak 

institutional capacity, and future disasters. USAID helps Nepal to bolster democratic governance, 

boost private sector-led economic growth, address Nepal's energy security and regional 

connectivity, strengthen health care and education systems, and build its capacity to mitigate and 

respond to natural disasters. 

Nepal is in the midst of a historic devolution of powers and transition to federalism, which 

carries the potential for increased socio-economic development and stability. However, early 

challenges to this transition have emerged, including increased opportunities for corruption, 

renewed grievances from the conflict era, insufficient local government capacity to provide 

services, and openings for non-democratic influences from external actors. With FY 2020 funds, 

our assistance will address these emerging threats and support Nepal's democratic sovereignty 

by promoting transparent and inclusive governance, a free and independent civil society that 

holds the government accountable, and strengthened rule of law to deter transnational organized 

crime. Following on USAID's support for the historic 2017 elections, the FY 2020 request 

includes $9.5 million to solidify democratic gains by increasing Good Governance. 

Despite Nepal's economic progress, corruption and a weak business-enabling environment have 

perpetuated a fundamentally non-competitive economy. This has left the country vulnerable to 

unsustainable debt and predatory lending schemes. In line with the President's vision for a free 

and open Indo-Pacific region and USA !D's Journey to Self-Reliance, our assistance improves 

the country's regulatory environment necessary to accelerate economic growth. Programs will 

promote business-friendly policies and regulatory refonns that advance a competitive market 

economy and support small- and medium-sized businesses. A total of $7.5 million in Economic 

Growth funds is requested to help Nepal leverage trade and investment opportunities and realize 

its largely untapped economic potential. 

5 
30 

In line with Asia EDGE, our efforts help to strengthen the energy sector's legal and regulatory 

framework, enforce environmental and social safeguards, and facilitate cross-border electricity 

trade with partners such as India. Additionally, we are boosting the agricultural economy and 

food security through sector modernization and strengthened market linkages. Finally, building 

upon USA !D's success in helping Nepal recover from the 2015 earthquakes, we will continue to 

promote modern safety standards and sustainable financing for disaster-resilient construction as 

an alternative model for infrastructure projects in Nepal which impose unsustainable debt and 

questionable standards. 

Our health and education investments support Nepal's Journey to Self-Reliance and optimize the 

long-term effectiveness of U.S. assistance. FY 2020 Global Health funds support the globally 

shared goal of preventing child and maternal deaths and the latest evidence-based interventions 

to reduce chronic under-nutrition among women and children under 2 years of age. Building 

upon our success in increasing literacy rates for over 318,000 early grade students, USAID will 

continue to support the government's national rollout of its early grade reading program to 

prepare Nepal's children and youth to contribute to a productive economy. 

Sri Lanka 

An island nation located along major trade routes in the Indian Ocean, Sri Lanka is critical to 

maritime and regional stability. Sri Lanka continues to navigate a path toward stability and 

reconciliation after a 26-year conflict and several natural disasters. Recent political turmoil, 

compounded by the April terrorist attacks, growing ethnic-religious nationalism, and slow 

progress on commitments to transitional justice and ethnic reconciliation, exacerbate Sri Lanka's 

development challenges. With elections at the provincial and national levels on the horizon for 

late 2019 and early 2020, USAID will use FY 2020 resources to strengthen Sri Lanka's capacity 

to play a positive role in a free and open Indo-Pacific region by bolstering democratic 

governance, fostering ethnic reconciliation and religious harmony, and enhancing fair 

opportunities for trade and investment. 

In line with a free and open Indo-Pacific region and Sri Lanka's Journey to Self-Reliance, 

roughly half of the bilateral budget request will promote democratic governance. Funds will 

strengthen democratic institutions and the rule of law, empower civil society and the media, 

build upon a growing political openness, and promote respect for human rights, including for 

members of minority communities. To suppmt Sri Lanka's Journey to Self-Reliance and 

strengthen the effectiveness, transparency, and accountability of key democratic institutions, 

funds will be used to support capacity building of institutions, including the Parliament and 

independent commissions, and increase civil society engagement in electoral processes. Funds 

will also support Sri Lanka's efforts to fulfill its commitments to transitional justice dating from 

the end of the civil war. 

Also in line with a free and open Indo-Pacific region and Sri Lanka's Journey to Self-Reliance, 

the remaining bilateral budget request will advance economic governance. Using FY 2020 funds, 

our assistance will help level the playing field for trade and investment though transparent and 

accountable public financial management systems that help Sri Lanka effectively manage 

6 
31 

domestic resources and debt so that the country can achieve growth and self-reliance, and avoid 

taking on unsustainable debt. Programs will promote inclusive economic development that 

allows for island-wide growth, for example, through a focus on small and medium enterprise 

development and entrepreneurship opportunities. Assistance will also provide the Government of 

Sri Lanka, especially the Port of Colombo, with infrastructure technical support. 

Maldives 

Following the Presidential election in September 2018 and recent Parliamentary election, 

Maldives is experiencing a renewed commitment to democratic governance and the rule of 

law-a critical step toward a free and open Indo-Pacific region. Growing prosperity in the 

Maldives heavily depends on fisheries and tourism-industries that are vulnerable to weather 

and market volatility. USAJD partners with the Maldives to strengthen democratic and economic 

governance and environmental resilience. 

FY 2020 resources will enable USAID to advance U.S interests and seize burgeoning 

oppot1unities presented by the Maldives' democratic opening. Following the election last fall, 

USAID was quick in responding to a request from the new Maldivian Government to assist with 

developing and implementing its reform agenda. Specifically, USA !D's suppot1 to-date has 

helped the government solicit and respond to citizen input for its governance plans; provided the 

President's office with capacity building in anti-corruption oversight, and implemented programbased budgeting in several ministries. To sustain hard-won democratic gains, FY 2020 resources 

will strengthen the effectiveness, transparency, and accountability of key democratic institutions 

at the national and local levels; work with civil society to counter radicalization to violence and 

recruitment to violent extremist organizations by increasing the resilience of vulnerable 

populations; and bolster the work of government and civil society stakeholders to investigate 

human rights violations and abuses and refonn laws and policies that contribute to them. 

In addition, FY 2020 resources will promote improved economic governance, with patticular 

attention to increasing government transparency, accountability, and efficiency. Resources will 

support Maldivian efforts to counter corruption by improving the policy and regulatory 

environment for public financial management, supporting effective budgeting, and streamlining 

processes and aligning current policies to conform to transparent, international best practices. 

This will improve effectiveness of national expenditure allocations and the efficiency of public 

investment management. Resources will also continue to strengthen decentralized management 

of more resilient reef ecosystems, and establish sustainable financing mechanisms to support 

adaptive marine management. 

Conclusion 

Chairman Sherman, Ranking Member Y oho, and Distinguished Members of the Subcommittee: 

South Asia is a strategically important region for the United States, with tremendous promise 

that is constrained by significant development challenges. Much depends on the development 

path the region charts today. This budget request would provide the necessary resources for 

USAID to continue its critical role strengthening American security and prosperity through 

strategic investments that increase partner country self-reliance and advance a free and open 

7 
32 

Indo-Pacific region-contributing to greater stability and economic opportunity for all. Thank 

you for the opportunity to appear before you today. I look forward to your counsel and questions. 

8 
33 

Mr. SHERMAN. I want to thank all of our witnesses. I will now 

recognize myself for 5 minutes. 

Ambassador Wells, how important is it for us to reach out to the 

people of Pakistan in the languages they actually speak in their 

home, particularly in the language of Sindh? 

Ms. WELLS. Very important, sir, and we do through our Karachi 

consulate have programming in Sindhi language to the 50 million 

person audience in that region. We also have local staff, whether 

it is in Karachi or elsewhere in-country that are engaged in Sindhi 

language outreach. 

Mr. SHERMAN. So you are able to reach people by sending speakers out, by convening meetings, but if we did broadcasting in 

Sindhi we would be able to reach all 50 million people. I hope you 

support that record. For the record? Yes. 

Ms. WELLS. We appreciate additional efforts of outreach in Pakistan. 

Mr. SHERMAN. Now the big aid, and we are here not talking 

about 70 million for Pakistan, the big issue is the IMF loan. It 

looks like that is going through. 

Ambassador Wells, does Treasury just do what they want for 

checking off some economic boxes, or since this is the single most 

important thing we do with regard to Pakistan, do they listen to 

you? 

Ms. WELLS. Yes. There is a discussion about the conditionality 

that we think would be appropriate for an IMF package to Pakistan. We have not seen the IMF package yet. We understand that 

there has been an agreement reached between the IMF and Government of Pakistan, but certainly we have communicated our 

strong views and Secretary Pompeo has also done so publicly on 

the need for any package to include a real structural reform to reinforce—— 

Mr. SHERMAN. If I can interrupt, what about Dr. Afridi? Can we, 

should we block this IMF loan until Dr. Afridi, his family, are free 

here in the United States? 

Ms. WELLS. We believe Dr. Afridi is being held wrongly, inappropriately. With Congress’s help we have withheld 130 million dollars 

in assistance to Pakistan already as a result of his incarceration, 

and we continue to raise Dr. Afridi’s case. 

Mr. SHERMAN. But we are letting them get what they really want 

which is the six billion from the IMF. And if they default on that 

the American taxpayers lose well over a billion. Have we offered 

any prisoner exchange, for example, Dr. Siddiqui, who I know has 

cooperated in terrorism, but is still, given Dr. Afridi’s critical role 

are we negotiating or are we seeking to negotiate with Pakistan 

some sort of prisoner release? 

Ms. WELLS. We have not offered a prisoner exchange for Dr. 

Afridi. Dr. Afridi is being held wrongly. He is not guilty of any terrorism charges. 

Mr. SHERMAN. Almost every prisoner exchange—when we exchanged spies with the Soviets, the spies that we gave up were people working for communism and the people we got back were people working for freedom. By all rights they should have been freed 

anyway. I would hope that as another committee looks at those 

who—the first responders at 9/11, that you would do more to get 
34 

Dr. Afridi released and make more, offer more on the plus side 

even if it is unjust and withhold on the other side, because who is 

going to ever help America stop terrorism as long as Dr. Afridi is 

in jail. 

I have talked before about the missing persons and forced disappearances, particularly religious minorities in the Sindh Province 

of Pakistan. I will ask both—well, I will ask all of our witnesses, 

to what extent do we bring up these human rights issues in our 

interactions with Pakistani officials? Ms. Steele? 

And if it Ms. Freeman who pretty much deals with that then I 

will just—Ms. Freeman. 

Ms. STEELE. It is Ms. Freeman. 

Ms. FREEMAN. USAID remains concerned about all of the reports 

on human rights violations. And not only do we raise that with the 

government officials, but we also try to encourage the new initiatives with the Government of Pakistan and strengthen civil society 

to that end. Thank you. 

Mr. SHERMAN. My time is expired, my list of questions is not. We 

will call on other members and we will do a second round for those 

who are still here. We will hear from our ranking member. 

Mr. YOHO. Thank you, Mr. Chairman. 

Thank you for your testimony. Ambassador Wells, it was music 

to my ears to hear you say moving countries from aid to trade as 

soon as possible. From a hearing like this it is amazing when I look 

back, it led to the inspiration for the BUILD Act and that is how 

that happened. That led to the bipartisan support to create the new 

USIDFC, the International Development Finance Corporation, 

modernizing OPEC, and strengthening our foreign development 

arm moving, again, countries from aid to trade. You know, so out 

of this meeting we hope to move beyond that. 

It is such a large region from Afghanistan over to the east encompassing all the countries in between, I think it is about 1.8 billion people just in that region. And what I hear, again when we 

talk about development I hear over and over again we need to 

build democracies. And I have been a proponent of I do not think 

that is the right way to go. You guys have got collectively a tremendous amount of experience. 

I think more importantly we should develop stable governments. 

If I look at the history that has been learned or the lessons that 

have been learned from Afghanistan, we moved into a country that 

we did not understand. We did not understand the tribal nature of 

a country and we tried to instill a democracy. And as we know democracies are very messy as we have learned over 240-plus years. 

I think we should adapt our strategy and policies to fulfill the 

needs of a country and develop a stable government, because I see 

right now we are negotiating with the Taliban, but somebody correct me if I am wrong, they were a terrorist organization and we 

had a policy we do not negotiate with terrorists. Yet they control 

more land in Afghanistan today than they did before we went into 

Afghanistan. 

My question to you is, the Taliban will not negotiate with the 

current, democratically elected Afghan Government. Is that not a 

major problem and should the Afghan Government be brought into 

the negotiations? 
35 

Ms. WELLS. Absolutely. And Ambassador Khalilzad’s mission or 

his mandate is, you know, first to ensure that we are not threatened by terrorist groups operating inside of Afghanistan; and two, 

to protect the investments we have made over the last 18 years in 

Afghanistan; and then three, to end the war and reduce the burden 

on the United States. And the way he has approached the negotiations is through four interrelated elements. 

The first element is to, you have guarantees and enforcement 

mechanism that the Taliban will break all ties with international 

terrorists, with any terrorist group on Afghan soil; second, to arrive 

at guarantees and enforcement mechanism for the withdraw of foreign troops; but three is to ensure Taliban participation in intraAfghan negotiations and dialog, and that would include the Afghan 

Government. It would include the political opposition, civil society, 

and women. 

And then the fourth element is a complete and comprehensive 

cease-fire. And you cannot have one without the other, all four 

interrelated. And, for example, how would we trust the counterterrorism guarantees if we do not understand the government that 

emerges from an intra-Afghan negotiation. And so, this process is 

underway. Ambassador Khalilzad is in Afghanistan right now 

working to create, working with partner President Ghani, and also 

bringing in the region through his consultations with Russia, 

China, the Europeans, and Pakistan of course. 

Mr. YOHO. You know, I hear you on the development and the 

things that we want and we want to, you know, empower people, 

women, and everybody in society. But again, when you go to a 

country that is for thousands of years has never had that and we 

are kind of forcing this on them, I think there is—if we know that 

people want to become more successful economically, when we go 

in and do major infrastructure development—and that was the impetus behind BUILD Act, so that we could develop infrastructures 

that would lead to the development of economies that create the 

jobs that bring a better outcome—generally, I would think you 

would get more stability. 

I mean we have been in Nicaragua, we had a hearing on that 

yesterday, with Daniel Ortega, and basically, we are still trading 

with this guy and he is a communist dictator by all practical 

means, but yet we have—we pretend it is a democracy and it is 

anything but. And so, if people do not understand a democracy, I 

think they would understand a stable government. 

And again, it pains me that we are negotiating with the Taliban 

after what, 18 years and billions or trillions of dollars. I just depend on you with your collective experience to feel bold enough to 

say I think we should change the strategy. And if you cannot do 

it in the State Department, slip a note under my office door anonymously and I will be happy to follow through with this committee. 

Mr. Chairman, I yield back. 

Mr. SHERMAN. We have many methods of communication with all 

of you who work hard in our foreign policy agencies. With that I 

recognize the gentlelady from Pennsylvania. 

Ms. HOULAHAN. Thank you, Mr. Chair. 

And thank you very much for your testimony. Today it is nice to 

see some of you again and some of you for the first time. My ques-
36 

tion is for Ambassador Wells and Ms. Steele, most likely, but I 

would welcome anybody to answer it. Yesterday, or probably this 

morning, because we just got out of the HASC all-day, 24-hour 

marathon markup, I was able to successfully include an amendment in the NDAA that directs the DOD to conduct research on the 

role of women in countering violent extremism. 

Given the horrific Easter Sunday attacks in Sri Lanka, can you 

talk about the ways that State and USAID are perhaps working 

with or using women to help prevent the rise of extremism in 

South Asia? 

Ms. WELLS. This is a very strong component, obviously, of the 

peace process in Afghanistan in ensuring that women’s voices and 

views are incorporated. And so, you see that Ambassador Khalilzad 

actively soliciting the views of women, working with women’s organizations in Afghanistan, working with stakeholders to ensure that 

women are included as representatives in any dialog or negotiating 

structure, this is reinforced by the White House’s own initiative to 

emphasize women in peacemaking. 

And so there will not be peace in Afghanistan if half the population is not understood and accommodated, and I would just add 

that as we come closer to peace negotiations, the demand for upholding women’s education and women’s rights has been so strong, 

and not just from women in cities but reports of women under 

Taliban control, what they want is education and an opportunity 

to work and so getting their voices heard is critical. 

In Sri Lanka, the multi-confessional, multiethnic nature of that 

society, you have to have women also reaching across those boundaries, and so I will let Gloria discuss the range of programs that 

we have to do so. 

Ms. STEELE. Thank you. You are absolutely right. A major component of our programs not just in Sri Lanka, but also in the 

Maldives is mobilizing women, the civil society particularly involving women, in order to help us address the root causes of violent 

extremism in both countries. One of the first things that we did 

when we provided assistance in the Maldives, for instance, was to 

get civil society together focusing specially on women and the youth 

in order to help us try to address violent extremism. This is a 

major component of our programs. 

Ms. HOULAHAN. Thank you. And I certainly look forward to the 

opportunity to have the DOD do a little bit of research on all of 

our behalves on this issue. 

And kind of transitioning into that, on Tuesday the administration finally released its Women, Peace, and Security strategy. I 

think it was about eight or 9 months late. And last month, I joined 

many of my colleagues on this committee in sending a bipartisan 

letter to Secretary Pompeo urging him to ensure the representation 

of Afghan women in peace negotiations with the Taliban. 

So I would like if it is OK, Mr. Chairman, to enter that, ask for 

unanimous consent to enter that letter into the record. 

Mr. SHERMAN. Without objection, so ordered. 

[The information referred to follows:] 
37 

LOIS FRANKEL 

WASHINGTON OFFICE 

DISTRICT OFFICE 

\!l:ongre%5 of tiJe 'dtlniteb ~tate% 

1£)ouzc of l'\eprczcntatibcl1 

~1LiaZIJtngton, l!llC 20510-0021 

The Honorable Michael Pompeo 

Secretary 

U.S. Department of State 

2201 C Street NW 

Washington, DC 20520 

Dear Secretary Pompeo, 

June 6, 2019 

ENJ:RGY At\0 WATER 

DEVELOPMfNl 

! AB;~~J~I~:~ T~l~~:~~g~W4 

ST,HI:; AND rDF!riG"' OPERATIONS 

As the United States seeks to end the fighting in Afghanistan, we urge you to ensure that Afghan 

women are equally and meaningfully represented in the peace process and that any agreement 

protects women's rights. While we welcome the State Department's efforts to lay the foundation 

for an inclusive intra-Afghan peace process, we are concerned that women's voices are being 

excluded. 

Research by the International Peace Institute shows that when women have a substantive role in 

peace negotiations, the likelihood the agreement will last beyond fifteen years increases by as 

much as 35 percent. Recognizing the importance of women's participation, Congress passed and 

President Tmmp signed into law the Women, Peace, and Security Act (PL 115-68). As you 

know, that law makes it U.S. policy to promote women's meaningful participation in preventing, 

managing and resolving conflicts. ft builds upon a growing body of research that demonstrates, 

in the words of the 2017 National Security Strategy, that "societies that empower women to 

participate fully in civic and economic life are more prosperous and peaceful." Additionally, the 

Presidential Memorandum on Promoting Women's Global Development and Prosperity 

rightfully recognizes this relationship between women's inequality and a country's propensity 

toward violent conflict. The Afghan peace process is the first real test of U.S. implementation of 

this law, and we hope you take this opportunity to include women as decision-makers on matters 

of peace and security. 

The significant gains of Afghan women and girls over the past 18 years have been some of the 

greatest returns on U.S. investment in Afghanistan. Since the Taliban govenunent fell in 2001, 

women have voted in elections and served as parliament members and government ministers. 

According to the U.S. Institute of Peace, more than 68,000 women are employed in schools and 

universities, at least I 0,000 are doctors and health care professionals, and Afghan women 

entrepreneurs have created roughly 77,000 jobs for Afghans. 

Women from across Afghanistan have come together in an unprecedented way to call for their 

equal and meaningfttl participation in any ceasefirc and peace process. The Afghan Women 
38 

National Consensus for Peace, a network of women's groups that includes the Office of the First 

Lady of Afghanistan, women members of the High Peace Council, the Ministry of Women's 

Affairs, and the Afghan Women's Network, recently convened !,'TOUps of women in 34 provinces 

to discuss their priorities for the peace process. Yet during the Febmary and May talks in Doha 

between American diplomats and the Taliban, Afghan women were not represented. Afghan 

women's voices need to be heard- not just on women's rights, but on the future of their country. 

We urge the State Department to protect Afghan women's negotiating position and hard-won 

gains in all discussions with the Taliban. 

As negotiations with the Taliban continue, women's perspectives and the preservation of 

women's rights and human rights should be at the center of your efforts, including by ensuring 

that women have a meaningful seat at the table. Sustainable peace in the country and the region 

depends upon it. 

zly.jMJ 

LOIS FRANKEL 

Member of Congress 

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Member of Congress 

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Member of Congress 

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39 

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41 

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42 

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CC: U.S. Special Representative for Afghanistan Reconciliation Zalmay Khalilzad 
43 

Ms. HOULAHAN. And for the Ambassador, I was wondering if you 

could tell me a little bit about the status of those negotiations. 

Ms. WELLS. Ambassador Khalilzad has made significant progress 

in getting the Taliban to the negotiating table. And not just any 

Taliban, but an empowered negotiating team that represents various constituencies of the Taliban and leadership figures. And in 

these discussions that have taken place in Doha and in the discussions that are taking place in Kabul with the Government of Afghanistan, hammering out those four elements of what are going 

to constitute a sustainable peace settlement. And so the progress 

is ongoing. 

The next step, major step that needs to be taken is to achieve 

an intra-Afghan dialog and negotiation. There are certain things 

that can be discussed between the United States and the Taliban 

that are appropriate, but certainly nothing can be negotiated over 

the heads of the Afghan people. 

Ms. HOULAHAN. And you feel as though women are being included in those early conversations? 

Ms. WELLS. They are. And both in Ambassador Khalilzad’s extensive outreach, but also in President Ghani’s own solicitation of 

the views of Afghan women, the role of Afghan women in the Peace 

Council. I would note that about a third of all voters in the parliamentary elections in Afghanistan were women. We have 69 

women members of Parliament. Women are part and parcel of not 

just government, but in all aspects of society now in Afghanistan 

and it is one of the foremost achievements of the last 18 years. 

Ms. HOULAHAN. Thank you. And my time has expired and I yield 

back. 

Mr. SHERMAN. We move from the gentlelady from Pennsylvania 

to the gentleman from Pennsylvania. 

Mr. PERRY. Thanks, Mr. Chairman, and I thank our panelists for 

their attendance today. 

Ambassador Wells, I want to turn to India a little bit and have 

a discussion regarding our ties—correction—India’s ties with Russia, especially on the military side and particularly their purchase 

or acquisition of S–400 surface-to-air missiles, and if that will result or, in your view, if it will invoke CAATSA sanctions. And what 

is India’s calculation in receiving that weaponry from Russia and 

is there any indication that they did so because they couldn’t get 

some like kind of capability from the United States? 

Ms. WELLS. Thank you. I think we have seen India, over the 

years, in particular over the last 10 years, start to diversify its 

weapons sources. And so, we, our trade relationship in defense sector went from zero to 18 billion over the last 18 years and we expect a continued progress in expanding that defense relationship. 

But it is still the case that about 65 or 70 percent of India’s military hardware is Russian origin. And when President Putin visited 

in October of last year, there were additional announcements of 

big-ticket military items that were potentially under consideration. 

What causes concerns with the S–400 is that it effectively could 

limit India’s ability to increase our own interoperability, that at a 

certain point a strategic choice has to be made about partnership 

and a strategic choice about what weapons systems and platforms 

a country is going to adopt. It is the case that 10 years ago we did 
44 

not offer the range of military equipment to India that we are prepared to offer today, and so we are very much engaged in a conversation with India over how we can broaden our defense relationship. 

And you saw a key step forward last year when the Ministers of 

State and Defense met each other, when we negotiated and signed 

the COMCASA agreement which allows for the sharing of classified 

information, one of these basic foundational agreements that foster 

military interoperability. So we are making, I think, significant 

strides forward in our military relationship. There is no blanket 

waiver or a country waiver when it comes to an S–400. We have 

serious concerns about a possible S–400 purchase and we are continuing our conversations on what the United States or other defense providers how they could assist India. 

Mr. PERRY. Were we aware that they were in negotiation for the 

S–400 prior to its acquisition? I mean did we know they were engaging in that with Russia in advance of the acquisition and the 

delivery? I mean, were we in the conversation? 

Ms. WELLS. We were aware of India and Russia’s negotiations. 

These have been long-running. 

Mr. PERRY. I am sure. 

Ms. WELLS. Many, many years in the making, and so—— 

Mr. PERRY. So what did we do to try and dissuade, and encourage, dissuade India and encourage them to take a different path, 

particularly with the S–400, and did we do anything to offer any 

alternatives, or was it and is it inappropriate to do that at this 

time? 

Ms. WELLS. Well, I think under the Trump administration we 

have been very clear that we are ready to help meet India’s defense 

needs and we are seeking a very different kind of defense partnership, building on the major defense partner designation that India 

has received from Congress, and so how to make that as robust and 

as meaningful of a relationship as possible. 

You know, we now do more military exercises with India than 

with any other country. Just a few weeks ago, India, the United 

States, Philippines, and Japan did a sail-by in the South China 

Sea. In both our bilateral, trilateral, quadrilateral formats, we are 

working together in ways that we did not even conceive of 10 years 

ago. And so, we would like all aspects of our military relationship 

to catch up to this new partnership. 

Mr. PERRY. What do you envision the relationship with the U.S. 

and India vis-a-vis China, strategically? I mean can you give us 

like a 1–2–3 overview of what the State Department envisions for 

that relationship or of that relationship vis-a-vis China? 

Ms. WELLS. Both the United States and India believe in a free 

and open Indo-Pacific region. We believe—so, first, we are worried 

about China’s ambitions and aggressions as they are manifesting 

themselves in the Indo-Pacific. I think, second, we are concerned by 

a policy of predatory lending, unsustainable loans, loans that do 

not adhere to labor, environmental standards and loans that have 

led to, in the Indian Ocean region, the loss of sovereignty, whether 

it is in Sri Lanka or Pakistan or what was about to happen in the 

Maldives. 
45 

And so, I think we have a clear-eyed understanding of the need 

for us as like-minded democracies to work with other like-minded 

democracies like Japan and Australia to provide alternatives to 

countries in the region. We are not trying to make this a zero-sum 

game, but countries should as they pursue necessary infrastructure 

development not have to go down a road that is ultimately going 

to compromise their national security or their economic well-being. 

And we have, through our bilateral and now these quadrilateral 

sessions that we are doing with India, Japan, and Australia, we are 

working on sort of practical steps that we can take to coordinate 

on our finance development, so through the BUILD Act, the practical steps we can take to make sure our assistance programs, 

whether it is USAID or the Millennium Challenge Corporation, are 

helping to promote regional connectivity. 

And this is really one of the most exciting elements of the IndoPacific Strategy and where I expect to see a lot of progress. The 

President will be meeting with Prime Minister Modi and Prime 

Minister Abe in Japan at the G20 and we will have an opportunity, 

I think, to again highlight this new partnership of ours. 

Mr. PERRY. Thank you, Mr. Chairman. I yield. 

Mr. SHERMAN. I now recognize the gentleman from Michigan. 

Mr. LEVIN. Thank you, Mr. Chairman. 

I am deeply concerned about the degradation of democracy in 

Bangladesh. When the people of Bangladesh went to vote in December, some were turned away. They were told polling stations 

were closed for lunch, had run out of ballots, and that is after reporters noticed that when polls opened some ballot boxes already 

appeared full. And that is after the Government of Bangladesh neglected to provide credentials and visas to most election monitors. 

And I would add that my own constituents who went to participate in—saw multiple, multiple violations of basic election procedures. Maybe it is no surprise then that the Awami League won 

96 percent of the seats contested. I think we need to take these 

issues very seriously. The government-appointed Election Commission says the election was legitimate, but I do not think we can 

leave it at that. 

Ambassador Wells, what is the State Department doing to support thorough, independent investigations into these allegations of 

election fraud? With all due respect, it seems that we are just moving on. 

Ms. WELLS. In our human rights report and in our public statement that followed the elections, we were clear that we did not consider the elections free and fair, given the widespread reports of 

irregularities that you have mentioned included the ballot box 

stuffing and the intimidation of opposition polling agents and voters, and certainly the legal cases that were brought against opposition candidates in the lead up to the elections. 

We have urged Bangladesh and the independent Election Commission to investigate these concerns seriously. At the same time, 

you know, we see that the six opposition members that were elected to Parliament have taken their seats and we are encouraging 

the opposition to participate fully to demonstrate that there needs 

to be, the government needs to have an opposition body to provide 

alternatives to, to shine a light on government practices. 
46 

We do not lose sight of the fact that Bangladesh over the last, 

you know, years, has made significant strides in lifting millions of 

people out of poverty and the government’s social indicators are 

noteworthy. And that is something to respect, and it is something 

to respect that this government has taken in a million—— 

Mr. LEVIN. So that sort of mitigates our protection of basic democratic norms and procedures or it is a mitigating factor somehow? 

Ms. WELLS. No, sir. I do not want to suggest that. I mean we 

have been very clear about our view on the election. 

Mr. LEVIN. All right. Well, then let me turn to the situation with 

Rohingya. The Government of Bangladesh has raised the possibility of relocating Rohingya refugees living in Cox’s Bazar to 

Bhasan Char, an island in the Bay of Bengal. NGO’s have expressed concern about this possibility noting that access to health 

care and other basic necessities could be limited on the island. It 

is particularly vulnerable to monsoons, and Yanghee Lee, the U.N. 

Special Rapporteur for Myanmar has questioned whether the island is even habitable. 

Ms. Steele, what is the administration’s position on the potential 

relocation of Rohingya refugees to Bhasan Char? 

Ms. STEELE. We have always informed both the Governments of 

Burma and Bangladesh that our position is to support voluntary 

returns. Voluntary, safe, and dignified returns to Burma. 

In terms of Bhasan Char, we have joined other donors in saying 

that we need to have an assessment of the island to make sure 

that these are livable and safe for the refugees. 

Mr. LEVIN. How long will such an assessment take? 

Ms. STEELE. We do not know, and we have been encouraging donors to come together and continue to put pressure on the Government of Bangladesh. But as of now, the Government of Bangladesh 

has continually, as a result of pressure from the international community, the Government of Bangladesh has postponed, repeatedly 

postponed the movement of the refugees—— 

Mr. LEVIN. All right, thank you. And let me try to squeeze in one 

more question, again, about Bangladesh. As a result of the security 

situation there, the State Department has ordered the departure of 

families of Department personnel stationed there. State Department employees do not want to go there and be separated from 

their families and it is not a great work situation. 

When does State anticipate allowing families to return to Bangladesh, Ambassador Wells? 

Ms. WELLS. Right. It is an ongoing process of reviewing the security situation and the government’s ability to deal with potential 

terrorist incidents. The drawdown took place after the Holey Bakery attack that took place, you know, on the diplomatic enclave. So 

as somebody who has to recruit our officers to Bangladesh, I am 

keenly interested in being able to take that step forward when appropriate. 

Mr. LEVIN. All right, thank you. 

Thank you, Mr. Chairman. I yield back. 

Mr. SHERMAN. Thank you. I recognize the gentleman from Utah. 

Mr. CURTIS. Thank you, Mr. Chairman and Ranking Member for 

holding this committee. Thank you to our witnesses who have come 

today. I would like to switch gears just a little bit to Nepal and ref-
47 

erence the election of 2017 which was a pretty significant mandate 

and it seems like there has been some struggling since then. 

And I am going to let you all decide who can best answer this 

question. Can you give me an update on our relationship with that 

government as the U.S. Government and how that is going? 

Ms. WELLS. We have a good, close working relationship with the 

Government of Nepal, which, you know, the government has had— 

there have been many governments over the last 5 years, and so 

the prospect of having an election which brings in a government for 

a full term offers a greater stability in decisionmaking and greater 

opportunity to move forward. 

In addition to the assistance that we provide under USAID, we 

have launched with Nepal a Millennium Challenge Corporation 

compact, which is you have a $500 million program, the Nepalese 

are contributing another 130 million, and it is an extraordinary 

sign, a signal of confidence in Nepal to demonstrate that working 

with Nepal we can create conditions of good governance that will 

help serve as a model for other foreign direct investment. 

In addition to the assistance, we have Peace Corps volunteers 

who have been in Nepal for over 70 years. We are growing our defense relationship focused on disaster assistance and humanitarian 

relief. We provided over $190 million in earthquake relief and continue to play a very important role in helping that government develop the housing standards and the retrofitting. So it is a robust 

relationship that is nOt just limited government to government, 

but really enjoys a strong people to people basis. 

Mr. CURTIS. That is good. You talked a little bit earlier about 

China and relationship with some of these countries. We are worried about that as well and their acceptance of China’s Belt and 

Road Initiative. It seems like we are going down the same path 

there with China with the predatory lending. Can you speak to 

that? And is the Millennium Challenge helping with that or what 

else can we be doing to change that course? 

Ms. WELLS. We certainly discuss with the leadership and we had 

the Foreign Minister and Foreign Secretary here over the last several months to have partnership dialogs. We discussed with the 

leadership the concerns over predatory lending, the options that 

are available, whether it is through foreign direct investment 

where American companies are most active. Obviously, Nepal has 

a very close relationship with India which has a major role to play 

in Nepal and is Nepal’s largest trading partner. So it is a subject 

of conversation and certainly Nepal is aware of our concerns. 

Mr. CURTIS. Is that enough to keep them from going down that 

path and do we need to be doing more? I know that is a tough 

question and probably applies to the entire world, right? 

Ms. WELLS. Well, it is interesting. Recently there was a joint 

U.S.-Chinese project in Nepal, a private sector project, a tunneling 

project, and that was what we sought to highlight to the government. When—it does not matter whether it is Chinese, Indian, you 

know, whoever is the lender, if the project is transparent, if it is 

competitively bid, if it meets international standards, we support 

it. 

Mr. CURTIS. Sure. 
48 

Ms. WELLS. You know, Nepal needs infrastructure. But everyone 

needs to be careful about the terms that infrastructure is offered 

on. 

Mr. CURTIS. Yes. 

Ms. Steele? 

Ms. STEELE. Thank you. Nepal is one of our biggest target countries under the Indo-Pacific Strategy and through our assistance in 

the Indo-Pacific Strategy we were working with the government in 

order to address and prioritize the use of their public finances so 

that they can be more productive. We are helping them to generate 

revenue through better tax administration. We are helping them to 

improve the business processes in order to be able to attract more 

legitimate private enterprise investments so that they do not fall 

prey to the what, the offerings of others that would make them go 

into a long-term, unsustainable debt. 

So that is what we are doing with them, and we are hoping that 

they will be able to improve their competitiveness and address 

their corruption, which is a major issue for how countries fall 

under the debt trap. 

Mr. CURTIS. I am pleased to hear that. I applaud those efforts 

and hope we can continue those and do even more and that you 

will continue to let Congress know what our role is in that. I think 

many of my colleagues are also very interested in that. 

Ms. STEELE. I think the support that you have given on both 

sides through the Indo-Pacific Strategy is very encouraging and a 

very strong impetus for us to be able to move and achieve the goals 

and objectives of the Indo-Pacific Strategy. 

Mr. CURTIS. Thank you. Mr. Chairman, I yield my time. 

Mr. SHERMAN. I will now recognize the gentlelady from Virginia. 

Ms. SPANBERGER. Thank you, Mr. Chair. 

Ambassador Wells, I have a question for you. According to the 

State Department’s Congressional Budget Justification book for 

Fiscal Year 2020, they write, ‘‘India’s emergence as a regional security provider and global leader is essential to advancing U.S. interests.’’ However, in June 2019, the White House formally ended concessions for India under the Generalized System of Preferences, 

GSP, which exempted Indian goods worth more than 6 billion from 

import duties. This move came in the context of ongoing tensions 

over U.S. imposition of steel and aluminum tariffs. 

I am curious if you could speak a little bit about what this impact is, how you think this GSP decision will impact our strategic 

relationship with India, and how the State Department is adjusting 

our foreign policy and engagement strategy because of it. 

Ms. WELLS. We have a multifaceted relationship with India and, 

you know, on the whole, this is a partnership that is moving forward that is, it is the centerpiece, really, of an Indo-Pacific Strategy, and Secretary Pompeo spoke to that yesterday in his public remarks. It does not mean we do not have frictions. And one of the 

frictions, historically, has been on trade, on tariff barriers. India 

has the highest tariff barriers of a G20 country; historically, it has 

been a protected market. And so, our failure to negotiate an agreement over the course of the last year, year and a half, led to the 

decision to suspend the GSP benefits. 
49 

And that said, when you look at the trade relationship, we have 

142 billion trade relationship. It increased 12 percent last year. 

U.S. exports increased 28 percent. The trade deficit went down 11 

percent, you know, to 24 billion. So, you know, we see India making strategic purchases of, you know, of defense industry or defense 

weaponry, of aviation, of energy. This is going to very much be at 

the top of the agenda when Secretary Pompeo visits India later this 

month. 

Ms. SPANBERGER. Do we have any concerns or should we be concerned that both the steel and aluminum tariffs and the GSP decision together could potentially push India closer to its cooperation 

with China, Russia, or even potentially Iran? 

Ms. WELLS. I do not think so, no. I mean we are India’s largest 

and best market, you know, 20 percent of India’s goods come here. 

There is Indian foreign direct investment in the United States. 

There is huge interest by U.S. firms in India. As Prime Minister 

Modi begins his second term, you know, he is preoccupied with job 

creation, and attracting foreign direct investment is going to be a 

key part of that strategy. 

So, you know, trade properly, you know, conducted can be a huge 

strength to the relationship and that is certainly our focus as we 

begin our engagement with Prime Minister Modi in his second 

term is how do we, you know, affix this part of the relationship so 

it better matches the positive trajectory we see in other areas. 

Ms. SPANBERGER. Thank you. And recognizing some of the challenges and certainly may be a uptick in some difficulties, in your 

opinion, is there anything else that Congress could be doing, could 

be assisting in to ensure that we are retaining and building upon 

the relationship, this already strong relationship that we have with 

India? 

Ms. WELLS. I think congressional support for the India-U.S. relationship has been extraordinary, you know, and the designation of 

India as a major defense partner, the bipartisan support that the 

relationship enjoys, has been critical and will continue to be critical. I mean this is a relationship where, you know, we have four 

million Indian Americans who also provide great ballast to the relationship and perspective on the relationship. And so I would just 

say please keep on providing that, that bipartisan consensus that 

we should be moving forward with India. 

Ms. SPANBERGER. Thank you, Ambassador Wells. And I thank 

the other witnesses for being here today and I yield back. 

Mr. SHERMAN. Thank you. We will now go to a second round. I 

believe everyone here has asked one round of questions. 

Ms. Wells, or Ambassador Wells, I did not promise you you get 

by with just one round. The current Sri Lankan Government came 

to power with overwhelming support in the Tamil community. The 

government has disappointed many in the Tamil community as far 

as its dedication to justice, peace, and reconciliation. There is little 

movement on a Federal constitution giving autonomy to the Tamil 

regions. And of course, much more needs to be done on accountability for human rights violations that have occurred during the 

civil war and especially its last phases. 

The Sri Lankan military—and this is probably the most important aspect, continue to hold on to civilian lands in Tamil areas, 
50 

and of course the longer that is delayed—the longer they delay the 

return of that land, the more likely it is that the military occupation becomes permanent. What, you know, will we continue to 

press the Government of Sri Lanka on these issues of reconciliation 

with the Tamil community, and especially the need for the military 

to give up land that it is occupying? 

Ms. WELLS. Yes. And we invited the Sri Lankan Foreign Minister 

and Foreign Secretary here to Washington for a strategic dialog 

and that was very much a part of the dialog. We welcome the fact 

that Sri Lanka, you know, has co-sponsored the U.N. Human 

Rights Commission resolution extending the international monitoring of its commitments to human rights, reconciliation, justice, 

and accountability. The progress has been slower than we would 

like to see. 

Mr. SHERMAN. I will count on you to continue to make that a priority for us. 

What level of aid have we provided for the Rohingya refugees in 

Bangladesh? Yes, Ms. Steele? 

Ms. STEELE. The total amount of funding for the Rohingyas both 

in Burma and Bangladesh is approximately $500 million to date, 

starting in 2017. 

Mr. SHERMAN. So that is 500 million a year? 

Ms. STEELE. No, 500 million—— 

Mr. SHERMAN. Total. 

Ms. STEELE [continuing]. Since 2017. 

Mr. SHERMAN. Since 2017, so the—and with the administration 

budget request what would it be of the coming fiscal year? 

Ms. STEELE. A significant amount of the funding that goes 

through the Rohingya is humanitarian assistance which is not included in the budget that you have reviewed. 

Mr. SHERMAN. Ah. It is not included in the—— 

Ms. STEELE. In the budget that we are discussing. It is, for instance, for USAID it is part of our Office of Foreign Disaster Assistance. 

Mr. SHERMAN. Right. 

Ms. STEELE. And Food for Peace, which is separate from the 

budget that we—— 

Mr. SHERMAN. I realize it is outside the purview of your agency. 

Do you happen to know what it is? Can you give us a number 

or—— 

Ms. STEELE. Oh, I am not aware of what the number is for—— 

Mr. SHERMAN. OK, so we will have to—— 

Ms. STEELE [continuing]. For budget outside of my bureau. 

Mr. SHERMAN [continuing]. We will have to put it together. Obviously, Bangladesh is a poor country and has taken in people that 

would otherwise be not only ethnically cleansed but subject to 

genocide. And I realize that—well, I believe, Ambassador Wells, 

your purview does not extend to Myanmar Burma? No. 

But the question I have, and I guess this affects your purview, 

is whether the United States will take the position that if the Government of Burma, Myanmar does not extend citizenship and protection to the Rohingya who were born there that we would support 

the transfer of North Rakhine State to Bangladeshi sovereignty. 

That is right on the border, literally, of your jurisdiction. 
51 

Ms. WELLS. Well, I will not speak for my colleagues, but I think 

it is a traditional position of State Department that we support the 

territorial integrity of countries and the sovereignty of countries. 

Mr. SHERMAN. But when the people of South Sudan were subject 

to horrific treatment by the Khartoum government, we were in effect the midwives for the creation of an independent South Sudan. 

And I will not say that that has worked out well, but we did support the creation of an independent State when a government in 

Khartoum could not. 

Ms. WELLS. Right. What we have focused on is, you know, can 

we get the conditions in Myanmar so you can have Rohingya go 

and look and see what their neighborhoods look like. Are the conditions such that they have confidence in returning, you know, how 

can we—— 

Mr. SHERMAN. And is citizenship and passports part of that? 

Ms. WELLS. The U.N. Report recommendations listed, you know, 

citizenship as one of the key issues that would help restore confidence. I think right now, you know, the Rohingya would like to 

return home if the conditions support a dignified return. And for 

those countries that are working in Myanmar and supporting the 

Myanmar Government, is how do we get the Myanmar Government 

to create those conditions. 

Mr. SHERMAN. Yes. I would say if the Myanmar Government 

does not announce that it is dedicated to the protection of these 

people and the issuance of citizenship documents, that we alter our 

position and call for the transfer of North Rakhine State to a country that will protect these people. This is their land. They have 

lived there for generations. And they have been subject to, I think, 

cleansing, and one might say attempted genocide. 

Certainly, if you lay that out compared to the facts of South 

Sudan, a change in international borders would be called for. Keep 

in mind, the government of Khartoum never denied the citizenship 

of the people of South Sudan. 

I will turn to Ms. Steele. What steps can USAID and the State 

Department take to partner with the charitable efforts of the South 

Asia diaspora community in the United States to help the people 

of South Asia? How can you work with the large and generous diaspora community? 

Ms. STEELE. We have been working with them, in particular with 

the Indian diaspora, in order to identify areas where we could work 

together. And they have the same interests as we do in addressing, 

for instance, the health issues and air pollution issues in the country. India—well, I met with a diaspora group of the Indian diaspora 

group recently, and they had expressed deep concern over the fact 

that India has the highest TB rate in the world. One-sixth of maternal and child mortality happens in India, and some of the 

high—most polluted cities in the world are in India. 

And so we have agreed to work together. Our proposed plan to 

create a foundation, the U.S.-India Development Foundation, using 

Indian private sector is intended to capitalize and mobilize on Indian resources to address our joint interests in development. 

Mr. SHERMAN. I thank you. And we often hear in Washington of 

public-private partnerships. When I hear that phrase I get concerned that maybe the deal is too good for private investors seeking 
52 

a profit, but in the case we are talking about here, we are talking 

about a public-private partnership with charitable intent. 

And with that I will recognize the ranking member. 

Mr. YOHO. Thank you for the second round, Mr. Chairman. 

If we go back to Afghanistan, if a deal is struck with the Taliban, 

what concerns do you have with regard to the progress we have 

made on the rights of Afghan women? And I want to kind of focus 

this again on, you know, we always stress building democracies 

versus let’s build a stable government, and if we build a stable government we can progress into these things and think a lot quicker. 

So I would like to hear, Ms. Steele, if you want to answer that. 

Ms. STEELE. I do not cover Afghanistan, Congressman. I would 

like to defer to—— 

Mr. YOHO. I am sorry. I am sorry. 

Ms. Freeman? 

Ms. FREEMAN. Those proud women are in my jurisdiction. 

USAID has had a history since the early years, in fact, the entrance into Afghanistan of working very closely with the women of 

Afghanistan in supporting their advancement. It is amazing to look 

back at 2001 when they had no access to education, to private sector, anything, and now in 2018 when we can look at—I recently attended a trade show in India that was between Afghanistan and 

India and, there, women attended and they were able to cut $500 

million in contracts. 

Mr. YOHO. That trade show was in India? 

Ms. FREEMAN. Yes. 

Mr. YOHO. And there were women from Afghanistan? 

Ms. FREEMAN. There were, indeed. And their attendance, their 

participation really highlighted their experience, the increase in 

their capabilities and how much they shine outside in the business 

world. Currently, we have been able to leverage about $3.2 million 

in private sectors loans to about over 1,700 women. 

Mr. YOHO. What are the results of that? What kind of loans? Are 

they creating businesses? 

Ms. FREEMAN. These are new business loans, exactly, to—— 

Mr. YOHO. Are they becoming successful businesses? 

Ms. FREEMAN. Indeed, they are. And we have been working with 

them with the Women’s Chamber there in Kabul and to expand 

their access to not only financing, but also in terms of leveraging 

their ability to raise their voices and speak their concerns to the 

government as well. 

Mr. YOHO. Has the tolerance of the Taliban toward women in society, education, has that improved since we all remember how 

they came in and—I remember that one young girl that got shot 

in the eye as a signal that they do not want women being educated. 

Has their outlook changed on women becoming educated, women 

being involved in business? 

Ms. FREEMAN. I would highly doubt it, but I would—— 

Mr. YOHO. Me too. 

Ms. FREEMAN [continuing]. Cede to my colleague. 

Ms. WELLS. The Taliban say that their views on education have 

changed and the proof is going to be in looking at the areas that 

they control or dominate and what is the situation there, and you 

see a variety of practices. You do see girls’ schools operating. In 
53 

some conservative places they do not. In some places they have 

more of a religious education. They divert from the curriculum of 

the Ministry of Education. 

But in the conversations that the Taliban are having with us and 

with other like-minded countries, they emphasize the fact that 

their views have evolved when it comes to education and working 

outside the house. 

Mr. YOHO. Let me ask you this then. What concerns do you have 

with the elements of the Taliban splintering off from the group and 

aligning themselves with ISIS and how is that going to affect the 

progress that we have made if we do not have a stable government 

there? 

Ms. WELLS. It is certainly a possibility for members of the 

Taliban to hive off and join ISIS. Some members already have. And 

that is why it is going to be critical that any peace agreement contain those guarantees—— 

Mr. YOHO. Right. 

Ms. WELLS [continuing]. By the Taliban that they are opposed to 

any terrorist presence and will combat any terrorist presence on 

Afghanistan soil. 

Mr. YOHO. Well, that is why I keep bringing up, you know, I 

think our focus should be on a stable government, because look at 

South Korea after the Korean conflict. It wasn’t what we would call 

a democracy, but after a short period of time once they started 

gravitating that way, they are our sixth largest trading partner 

today. 

I look at Vietnam after the Vietnam War, you know, we went in 

there to prevent communism. It is a communist country, but yet 

today it is a vibrant, market economy and we see baby steps moving in the right direction for human rights. You know, we cannot 

expect them to get to where we are at after our 200-year struggle 

and we still do not have it right. 

So if we focus on those things that we know will stabilize a government: rule of law, honor it in contracts basic human rights, 

drawing them this way. As the people become more to experience 

liberty and freedom, I think then you will see the changes that we 

want versus trying to push it the other way that causes the resentment in governments or groups like the Taliban. 

Mr. Chairman, I yield back and thank you for the second round. 

Thank you all. 

Mr. SHERMAN. You are free to leave. 

[Whereupon, at 10:57 a.m., the subcommittee was adjourned.] 
54 

APPENDIX 

SUBCOMMITTEE HEARING NOTICE 

COMMITTEE ON FOREIGN AFFAIRS 

U.S.l!OUSE OF REPRESENTATIVES 

WASHINGTON, DC 20515-6128 

Subcommittee ou Asia, the Pacific, and Nonproliferation 

Brad Sherman (D-CA), Chairman 

June 13,2019 

TO: MEMBERS OF THE COMMITTEE ON FOREIGN AFFAIRS 

You are respectfully requested to attend an OPEN hearing of the Committee on Foreign Affairs, to be held by 

the Subcommittee on Asia. the Pacific, and Nonproliferation in Room 2172 of the Rayburn House Office Building 

(and available Jive on the Committee website at https:Uforeignaffairs.house.gov/ 

DATE: 

TIME: 

SUB.JECT: 

WITNESSF:S: 

Thursday, June 13, 2019 

9:30a.m. 

U.S. Interests in South Asia and the FY 2020 Budget 

Ambassador Alice Wells 

Principal Deputy Assistant Secretary for South and Central Asian Affairs 

U.S. Department of State 

Ms. Gloria Steele 

Acting Assistant Administrator for the Bureau for Asia 

United States Agency for International Development 

Ms. Karen Freeman 

Assistant to the Administrator for the Office of Afghanistan and Pakistan Affairs 

United States Agency for International Development 

By Direction of the Chairman 
55 

COMMITTEE ON FOREIGN AFFAIRS 

MINUTES OF SUBCOMMITI'EE ON.%1A 1"Wii- fAC!C'I'-, ANn 1\,(QN(',....~ccl HEARING 

Day Thursday Date June 13, 2019 Room 2172 

Starting Time 9:35AM Ending Time 10:57 AM 

Recesses __ L._to ___) L._to ___) L_to ___) L._to ___) L_to ___) L._to ___) 

Presiding Member(s) 

C/1airman Brad Sherman 

Check all of the following t11at apply: 

Open Session IZJ Executive {£!!!sed) Session 0 Televised l.l.l 

TITLE OF HEARlNG: 

Electronically Recordmftaped) IZl 

Stenographic Record l.l.l 

U.S. Interests in S01ttlt A.•ia and t/1e FY2020 Budget 

SUBCOMMITTEE MEMBERS PRESENT: 

Attendance form attached. 

NON..SUBCOMMITTEE MEMBERS PRESENT: (Mark with an • if they are not members of full committee.) 

None 

HEARING WITNESSES: Same as meeting notice attached? Yes E) NoD 

(If "no". please list below and include title, agency, department, or organization.) 

STATEMENTS FOR THE RECORD: (List any statements submitted for the record.) 

IFRSiterman 

QFRWagner 

SFR Connolly 

IFR Houlahan 

QFR Houlahan 

TIME SCHEDULED TO RECONVENE----

or 

TIME ADJOURNED 10:57AM 

Subcommitte~te ~ 2 4!:.~ 
56 

HOUSE COMMITTEE ON FOREIGN AFFAIRS 

ASIA, THE PACIFIC AND NONPROUFHRAUON COMli1ITTEE HEARING 

l'RESEN7 MDIBER I 

_ _2(_ ~-d Sherman, CA ______ j 

___ )(_ _ ~~lll_I<I__JC~Connolly, VA I 

AmiBera,CA~ 

Dina Titus, N~ 

X Andy Levin, Ml 

-~-- "-~bigail Spanberger, VA 

X Chrissy Hou"lahan, P ~·-_____j 
57 

STATEMENT OF SANJAY PURl 

FOUNDER & CHAIRMAN 

THE U.S. INDIA POLITICAL ACTION COMMITTEE (USINPAC) 

BEFORE THE COMMITTEE ON FOREIGN AFFAIRS 

SUBCOMMITTEE ON ASIA, THE PACIFIC, AND NONPROLIFERATION 

REGARDING 

U.S. INTERESTS IN SOUTH ASIA 

June 13,2019 
58 

Mr. Chairman, Ranking Member: 

Thank you for holding this important hearing. 

It comes at a time when India just held the largest election the world has ever known. 

Over 600 million people voted, and Prime Minister Narendra Modi won again in a 

record-breaking landslide. 

In 2014, at the request ofUSINPAC, the late Congressman Eni F.H. Faleomavaega, who 

once served as the Chairman of this Subcommittee, flew a flag over the United States 

Capitol in commemoration of Modi's first victory. The flag was flown "as a token of 

friendship." As you may know, Congressman Faleomavaega was the first Member of 

Congress to visit Chief Minister Modi in Gujarat and did so in cooperation with 

USINPAC because he believed, like we do, that peace, prosperity, democracy and 

development for India are intertwined with U.S.-Asia relations. 

For too long, U.S.-India relations have been defined by a goal to prevent war between 

India and Pakistan. Pakistan has a long history of encroachment and violence across the 

Line of Control (LoC). Although the LoC is not a legally recognized international 

boundary, it is a de facto border that divides India and Pakistan in Kashmir, and has been 

recognized since 1949 when the two countries declared a ceasefire. As the Congressional 

Research Service (CRS) mentions, the Line has often been identified as a potential 

nuclear "flashpoint." 

The dispute over Jammu and Kashmir has been ongoing since India and Pakistan became 

independent in 1947. It is no secret that between 300,000-500,000 Kashrniri Hindus have 

migrated due to persecution. In 2001, tensions escalated when teJTorists from Pakistan 

attacked India's Parliament in New Delhi. In response, the two countries amassed nearly 

a million troops along their common border. Then and now, U.S. response has been 

generally apathetic, amounting to little more than encouraging India and Pakistan to sit 

down and resolve their differences. 

In 2003, USINP AC- a nonpartisan, nonprofit organization and the voice of over 3.2 

million Indian Americans- called for the U.S. to take a stronger position on cross-border 

terrorism and we were successful in moving forward legislation sponsored by 

Congressman Faleomavacga that would require the Administration to disclose to 

Congress the extent to which Pakistan is fulfilling its pledge to permanently halt crossborder terrorism and shut down terrorist camps. This action was the first time the U.S. 

House of Representatives had acknowledged, in a bipartisan manner, Pakistan's role in 

fueling militancy in Jammu and Kashmir. Had the U.S. stood firm in holding Pakistan 

accountable for eschewing terrorism and the proliferation of nuclear weapons, we might 

not be dancing on the edge of war in response to the terrorist attack carried out on Feb. 

14,2019 in Pulwama by Jaish-c-Mohammed (JcM), a Pakistan-based and supported 

terrorist organization that claimed responsibility for the bombing. 
59 

At least 40 Indian paramilitary police personnel lost their lives in the attack, which 

happened due to cover provided to JeM by Pakistan. The attack took place in the heart of 

the Kashmir Valley, and India rightfully responded because it had to defend its 

sovereignty. Pakistan should be held accountable. It is no longer enough to condemn 

state-sponsored terror. Pakistan must end the practice, and the U.S. should step up. 

Did Pakistan violate the U.S. F-16 User Agreement during its raid on India military 

installations in Kashmir after the Pulwama attack? We deserve to know. India says it 

has parts of an AIM-120 Advanced Medium-Range Air-to-Air Missile (AMRAAM) as 

evidence that Pakistan used U.S. F-16 fighter jets during its raid on India military 

installations in Kashmir. Pakistan says no F-16s were used. USINP AC has called for the 

U.S. to investigate. We want unequivocal assurance that a top-down, bottom-up 

investigation is underway and that U.S. technology and equipment is not being diverted 

or misused. 

USINPAC is also concerned about a $6 billion preliminary International Monetary Fund 

(IMF) agreement with Pakistan. Pakistan is deeply in debt to China. Mr. Chairn1an, 

USINP AC applauds your leadership in saying that any IMF loan to Pakistan cannot be a 

convenient way tor cash-strapped Pakistan to repay its debt to China. In a July 30, 2018 

CNBC interview, U.S. Secretary of State Mike Pompeo warned against the IMF using 

American dollars to bail out Pakistan's bondholders. "Make no mistake," he said. "We 

will be watching what the IMF does." 

USINPAC is not against the people of Pakistan, or aid for education, economic 

development, women's empowetmcnt, etc. But we are against state-sponsored terrorism, 

and against the misuse ofiMF loans. USINPAC is on record with the U.S. Secretary of 

Treasury in calling for no more IMF bailouts for Pakistan until Pakistan bans and arrests 

its ten·orist groups and militants. USINP AC is also on record before this Subcommittee. 

When it comes to Pakistan, the IMF' s tool of economic surveillance is not enough. The 

U.S. is the largest cumulative contributor to the IMF, and USINPAC will continue to 

urge the U.S. to say no more bail-outs, loans or Stand-By Agreements until Pakistan 

changes course. 

The Pakistani-sponsored attack on Pulwama was the single-deadliest in the history of the 

Kashmir conflict. It happened only months ago. The U.S. should pay attention. Both 

Pakistan and India possess nuclear weapons, and the U.S. cannot afford to let its 

dependence on Pakistan in Afghanistan constrain its relationship with India. USINPAC 

commends the Administration for cutting aid to Pakistan but the U.S.-India relationship 

deserves greater attention. 

It is unfortunate that the Administration has just announced that it is stripping India of 

special trade status, as of June 5, 2019. Excluding India from the Generalized System of 

Preferences (GSP), which allows India to export certain goods to the U.S. duty-free, will 

not be good for either country. India will respond and both sides will feel the economic 

crunch brought on by tit-for-tat tariffs. But I am hopeful that as a result of this hearing 

that the U.S. might re-think India. India will not budge when it comes to aspiring "for 
60 

better standards of living," as Prime Minister Modi has already indicated. India lives in 

one of the world's toughest neighborhood. It is the world's largest democracy and a 

counterbalancing influence in the region. India is expected to become the world's most 

populous nation by 2028. The U.S. and India should sort out their differences sooner 

rather than later. 

USINPAC was founded, in part, for reasons like this. USINPAC works to bring about 

outcomes that matter. Lawmakers in the U.S. and India are part of this history-making 

movement. Together, we have advocated for a range of issues that have far-reaching 

implications. Our work is sweeping and often the first of its kind on Capitol Hill -

from renewable energy and higher education conferences to groundbreaking events 

featuring Under Secretary of State Nicholas Burns in support ofthe passage of the U.S. 

India Civil Nuclear Agreement. We have been at the forefront of H-I B visa and 

employment-based green card reforn1. We have called for a fairer process for 

immigrants, and we continue to urge dialogue and comprehensive immigration reform 

that respects everyone, including Indians and Indian Americans who, like many others, 

are being afTected and penalized by an immigration system that is not working. 

USINPAC successfully urged the U.S. Congress to withdraw negative resolutions against 

Prime Minister Modi and played an important role along with many others including you, 

Mr. Chairn1an, in PM Modi receiving an invitation to speak before a Joint Meeting of 

Congress. USINPAC has been involved in Presidential, Senatorial and Congressional 

races. We have fought to put Indian Americans on the courts and in the Administration. 

We are known for furthering economic ties. USINPAC has hosted over 25 business 

delegations between our nations and held numerous conferences and roundtable 

discussions in close cooperation with the U.S. Senate and the U.S. House of 

Representatives. USINPAC has welcomed PM Manmohan Singh, Minister of Finance 

Arun Jaitley, BJP President Amit Shah and others to Washington, D.C. 

We have been at the National Press Club and recognized by CNN, NPR, The Washington 

Times, The New York Times, The Hindu, The Times of India, and other global outlets. 

On behalf of our membership, I have testified before the U.S. House Committee on 

Foreign Affairs as an expert witness on U.S.-India relations. Our achievements and 

advocacy have been commended and included in the U.S. Congressional Record. But, 

Mr. Chainnan, I cannot thank you and this Subcommittee enough for supporting the 

cause of India. 

Our sister organization, the Alliance for U.S. International Business (AUSIB), has also 

worked closely with the U.S. Congress, advocating for fairer treatment of small and 

medium-sized companies in the federal marketplace. Congressman Steve Chabot, also a 

former Chairman of the Subcommittee on Asia and the Pacific, has stood in strong 

support of us, noting that "India is very important not just to Asia but to the world." Like 

you, some of his first hearings as Chainnan were on India because, as he said, "India is 

one of the U.S.'s strongest trade partners." We cannot lose sight of the overarching 

importance ofU.S.-India trade relations. For the Indian American community, this often 
61 

means we cannot lose sight of the importance of small and medium-sized businesses, and 

entrepreneurs. Small businesses are the backbone of the American economy and, like 

Chairman Chabot said, "When small businesses are strong, America is strong." 

As an entrepreneur, I often host other entrepreneurs. I have hope for the future because 

of the intelligent solutions being put forward to solve issues plaguing vulnerable 

populations. Entrepreneurs from India, the U.S. and elsewhere are mobilizing innovative 

and sustainable solutions to address social, educational and environmental issues. 

However, small and medium-sized businesses often need help accessing the federal 

marketplace. This is why I created ACEL360, a business accelerator that drives the 

growth and increases the enterprise value of small and mid-sized federal contractors. For 

the Asian Pacific American community, it is especially critical for us to have leaders like 

you, Ranking Member Yoho, and Members of this Subcommittee who consistently 

promote equal opportunity, advancement and inclusion. 

Mr. Chairman, it is the hope of USINP AC that the United States will redouble efforts to 

bolster relations with India and Indian Americans. I particularly thank you for your care 

and attention, as co-Chair of the Congressional Caucus on India and Indian-Americans 

and as Chairman of the Subcommittee on Asia, the Pacific, and Nonproliferation. Your 

work is noticed and appreciated. Thank you for your outstanding service. And thank you 

for the opportunity you have extended to USINPAC to have testimony included for the 

record. 
62 

Statement for the Record 

Submitted by Mr. Connolly of Virginia 

The Trump Administration's FY 2020 international affairs budget continues the President's 

unilateral retreat from the world, and the South Asia region is no exception. The President's budget 

slashes U.S. assistance to the region by nearly 18 percent, including significant cuts to Afghanistan, 

Bangladesh, Pakistan, and Sri Lanka. This dramatic reduction stands in stark contrast to the Trump 

Administration's own stated priorities in its National Security Strategy, which highlights that "a 

geopolitical competition between fi·ce and repressive visions of world order is taking place in the 

Indo-Pacific region." It is dif1icult to see how this depleted budget would address challenges to U.S. 

national security interests from China's expanding influence, continued instability in Afghanistan, 

the ongoing Rohingya refugee crisis, and widespread threats to life and property in the region posed 

by climate change. 

In Afghanistan, the Trump Administration is pursuing an elusive peace agreement with the Taliban, 

while leaving our Afghan partners on the sidelines. In an effort to push the Taliban to the 

negotiating table, the Administration has amplified its bombing campaign. The United States 

dropped more munitions over Afghanistan in 2018 than the previous three years combined, 

undoubtedly contributing to the record number of3,800 civilian deaths in the country last year. At 

the same time, the President has proposed gutting U.S. assistance to Afghanistan by 24 percent, 

including a $100 million cut to economic support and development funding. Giving the Taliban a 

legitimate platform to the exclusion of the Afghan government and gutting U.S. bilateral assistance 

undermines our Afghan partners and threatens our troops on the ground. 

Across South Asia, China is expanding its influence through its Belt and Road Initiative (BRI), 

which is a massive infrastructure program that China promises will attract more than $1 trillion of 

investment over the long-term. Characteristic of China's model of development, BRI projects often 

solicit unsustainable debt bnrdens for recipient countries, employ Chinese state-owned enterprises 

or labor, and lack transparency surrounding financing and contracting. We arc already witnessing 

early signs of a backlash to China's predatory style of investment. In Sri Lanka, a Chinese stateowned company took control of the deep-sea port it had built in Hambantota after the Sri Lankan 

government was unable to service its loans. The Maldives, a nation with a GDP ofless than $5 

billion, has a cun·ent estimated debt to China of $3 billion. As China bolsters its investment in the 

region, otten to the detriment of our partners, President Trump's budget signals a U.S. retreat. 

In Bangladesh, we are approaching the two-year anniversary of the August 2017 violence in 

Burma's Rakhine state that sparked the exodus of an estimated 745,000 Rohingya refugees. 

Bangladesh remains one of the poorest nations in the region and relies heavily on the international 

community to support the basic needs of these displaced people. As global attention to this 

humanitarian crisis has waned, the Rohingya remain in highly precarious circumstances- unable to 

return to Burma and unsure of their future in Bangladesh. According to UNICEF, 97 percent of 

Rohingya refugees aged 15-24 are not receiving any education or vocational skills training, and 

1 
63 

families are forcing their young girls to marry to gain some financial respite. As Bangladesh 

attempts to navigate this crisis, the Trump Administration's budget would slash aid to Bangladesh 

by 28 percent. 

ln South Asia, we face unprecedented humanitarian crises, extremism, climate change, and other 

threats to global stability. This region requires our dedicated leadership and engagement, and yet the 

Administration's FY 2020 budget cedes the ground to our adversaries. 
64 

Question: 

Questions for the Record Submitted to 

USAID Acting Assistant Administrator Steele by 

Representative Ann Wagner (#1) 

Subcommittee on Asia, the Pacific and Nonproliferation 

House Committee on Foreign Affairs 

.June 13, 2019 

Ms. Steele, I am deeply concerned about reports of attacks on India's religious minority groups 

carried out by groups claiming to support the ruling Bharatiya Janata Party. How is USAID 

working to promote religious freedom and subdue nationalistic violence in India? 

Answer: 

USAID is also concerned about reports of attacks on India's religious minorities. US AID 

places a strong emphasis on the rights of religious minorities and aims to protect and vigorously 

promote religious liberty. lJSAID strives to include and be sensitive to the needs of religious and 

ethnic minorities in all of its programming, and works in states across India which have 

significant minority religious groups. 

The new USAID/India country strategy will partner with the Government of India, the 

private sector, and other development stakeholders to provide development solutions that 

t·ecognize the need for stronger integration of youth, women, and marginalized groups. Inclusive 

development is a key pillar ofUSAID's approach to development assistance. Our efforts ensure 

all people who face discrimination are fully included and can actively participate in and benefit 

from our development activities. 
65 

Question 1: 

Questions for the Record Submitted to 

Senior Bureau Official Alice Wells 

Representative Ann Wagner (#1) 

House Foreign Affairs Committee 

June 13, 2019 

Ambassador Wells, the February terrorist attack in Kashmir and subsequent standoff between India 

and Pakistan sparked renewed anxieties over the two nuclear powers' ability to deescalate tensions. 

How does the United States support communication between India and Pakistan during crises? 

Answer 1: 

The United States remained closely engaged via all available channels with the 

governments oflndia and Pakistan following the Pulwama terrorist attack and subsequent period 

of escalated tensions. Secretary Pompeo spoke with Indian Minister of External Affairs Swaraj 

and Pakistani Foreign Minister Qureshi to press for concrete steps to defuse the crisis, including 

the urgency of Pakistan taking sustained and verifiable action against terrorist groups operating 

on its soil. Other senior U.S. government leaders engaged in similar conversations with 

Pakistani and Indian leaders during the crisis. 

An important element of this engagement was to encourage both sides to prioritize direct 

communication as a means of avoiding miscalculations and a further escalation of tensions. 

While we believe the substance of discussions to resolve outstanding disputes between India and 

Pakistan arc up to the two sides to determine, the United States supports any and all positive 

steps the two countries can take to expand communications by senior officials, improve relations 

and avoid conflict. 
66 

Question 2: 

Questions for the Record Submitted to 

Senior Bureau Official Alice Wells 

Representative Ann Wagner (#2) 

House Foreign Affairs Committee 

June 13,2019 

I understand that Russia sought to assume a role as a mediator between India and Pakistan during 

the most recent crisis. Ambassador Wells, is this a space in which U.S. and Russian interests align 

and cooperation is possible, or do you believe that Russia is trying to diminish the United States' 

role? 

Answer2: 

The Russian govermnent did announce, during the most recent crisis, its willingness to 

mediate between India and Pakistan. However, we do not believe that Russia played any 

significant role in the crisis de-escalation. 

The international community shares an interest in peace and stability in South Asia, and 

particularly in India and Pakistan avoiding conflict. 

Our National Security Strategy and our Russia strategy are designed to prepare us to 

respond and engage in a systematic competition with Russia. We are clear-eyed about the 

challenges Russia poses to many fundamental U.S. interests, but open to dialogue with Moscow 

when it is truly in our and our Allies' interests, recognizing the limitations of such engagement. 
67 

Question3: 

Questions for the Record Submitted to 

Acting Assistant Secretary Alice Wells by 

Congresswoman Ann Wagner (#3) 

House Foreign Affairs Committee 

June 13,2019 

Is the United States tracking extremist groups in Bangladesh, including Jamaat e-Islami? How is 

the U.S. countering the rise of violent extremism in Bangladesh? 

Answer3: 

The United States has close cooperation with Bangladesh's counterterrorism services to track 

terrorist groups. The Government of Bangladesh maintains .Jamaat e-Islami has links to 

organizations it considers domestic extremist groups, and deregistered it as a political party in 

2013 for inciting violent protests countrywide. The party remains politically active but does not 

participate in elections. 

The United States is using a whole-of-society approach to counter terrorist radicalization and 

recruitment in Bangladesh. USAID and the Bureau of Conflict and Stabilization Operations 

build the capacity oflocal organizations to develop community-level CVE programs. USAID 

also assists local partners to develop CVE capabilities across national and local governments and 

in communities by building local systems to prevent violent extremism. Through the Global 

Engagement Center, partners connect at-risk populations with compelling and credible 

alternative messages online. The Bureau of Counterterrorism provides support to Bangladesh 

through programs which support community policing, referral mechanisms, and family-led 

interventions. The Bureau ofCountcrtcn·orism also supports Bangladesh's participation in the 

Strong Cities network. 
68 

Question 4: 

Questions for the Record Submitted to 

Acting Assistant Secretary Alice Wells by 

Congresswoman Ann Wagner (#4) 

House Committee on Foreign Affairs 

June 13,2019 

Many analysts have drawn attention to China's efforts to encircle India with a "string of pearls" 

of military and commercial facilities along Indian Ocean sea lines of communication. However, 1 

understand that China is also investing in infrastructure in the Himalayas. Ambassador Wells, is 

this part of a concerted effort to encircle India? How is the United States working with 

Himalayan countries to ensure they understand the pitfalls of China's predatory investment 

practices? 

Answer4: 

China's attempts to encircle India through a "string of pearls" approach can be dated back 

a number of years. Port investment in Chittagong and Hambantota, as well as the major ChinaPakistan Economic Corridor (CPEC) initiative in Pakistan, serve as a few examples. Nepal's 

bypassing of procurement practices and awarding the Budhigandaki Hydropower project to 

China Gezhouba Group Corporation (CGGC) illustrates the challenge. We continue to 

underscore to Nepali government officials that making award decisions on infrastructure projects 

without following normal procurement practices sends the wrong signal to potential investors, 

and leaves countries vulnerable to corruption and foreign manipulation. 

The United States provides alternative support to Himalayan countries through several 

lines of effort. The Millennium Challenge Corporation (MCC) provides the largest infusions of 

U.S. assistance in specitic areas. The $500 million MCC compact for Nepal will increase the 

availability of electricity and lower transportation costs- helping to spur investments, accelerate 

economic growth, and reduce poverty. The new U.S. International Development Finance 
69 

Corporation that should become operational in October 2019 will have a $60 billion portfolio cap 

and can make equity investments and be easier for like-minded governments in the region to use. 

Bhutan has withstood Chinese overtures. After officials from Beijing sought Bhutanese 

support for the Belt and Road Initiative, Bhutan declined to send a representative to the Belt and 

Road Forum in late April. Border disputes have also made relations tense with China, and we 

commend the resilience that Bhutan continues to exhibit. As fellow democracies, the United 

States and Bhutan continue our strong relations, driven by fundamentallibe1tics and the rule of 

law. Bhutan's exemplary elections in 2018 were an inspiration to the region. We commend the 

evolution of democracy in Bhutan under the leadership of His Majesty the King. 
70 

Question 1: 

Questions for the Record Submitted to 

Acting Assistant Secretary Alice Wells by 

Representative Chrissy Houlahan (#1) 

House Foreign Affairs Committee 

June 13, 2019 

On Tuesday, the Administration finally released its Women, Peace, and Security Strategy. How 

will the release of the Strategy impact U.S. involvement in the Afghanistan peace negotiations 

going forward? 

Answer 1: 

The Women, Peace, and Security Strategy focuses on three objectives: women's 

participation in eflorts that promote stable and lasting peace; women and girls' safety, protection, 

and equal access to assistance resources; institutionalization and capacity-building of the U.S. 

Government and partner governments in these efforts. The State Department currently carries 

out activities articulated in the Strategy and appreciates the document's contribution in 

enhancing the effectiveness of our efforts. Since his appointment, Special Representative for 

Afghanistan Reconciliation Ambassador Zalmay Khalilzad has supported, and continues to 

support, the meaningful participation of Afghan women in the ongoing peace process through 

direct, persistent, and strong advocacy for the inclusion of women in intra-Afghan dialogue and 

negotiations. The United States will also continue to encourage the Afghan government to adopt 

policies, plans, and capacity to boost the meaningful participation of women in ongoing and 

future processes related to peace and security. 

We recognize the linkage between women's empowerment and peace and security. Our 

ongoing development and exchange programs have helped create an environment in which 

educated, empowered, and diverse women leaders are positioned to make substantial 

contributions in local and national peace eflorts in Afghanistan. 
71 

Question 2: 

Questions for the Record Submitted to 

Ambassador Alice Wells by 

Representative Chrissy Houlaban (#2) 

House Foreign Affairs Committee 

.June 14,2019 

You spoke in your opening testimony about the humanitarian abuses committed against the 

Rohingya, and the Bangladesh govemment's struggle to host the influx of refugees fleeing into 

their country. At this time, Bangladesh is not allowing refugees to work or study in the country, 

despite the very real possibility that these refugees will call Bangladesh home for the foreseeable 

future. However, data has shown that refugees and migrants make considerable economic 

contributions to their host countries. For example, here in the U.S., while migrants arc only 15 

percent of the population, they represent 25 percent of entrepreneurs. What are you doing to 

help lawmakers in Bangladesh recognize the benefits of affording refuges, especially children, 

the same rights as citizens? Do you foresee Bangladesh adopting the UN Comprehensive 

Refugee Response Framework domestically? 

Answer2: 

We continue to work closely with the Government of Bangladesh on the need to support 

education and livelihood opportunities for Rohingya refugees while maintaining pressure on 

Burma regarding accountability for abuses. Bangladesh recently approved Guidelines for an 

Infonnal Education Program for levels 1 and 2, or roughly pre-kindergarten to second grade, for 

children ages 4-14. These guidelines mirror a framework developed by the United Nations 

Children's Fund (UNICEF) and other education partners. Regarding work opportunities, while 

Bangladesh has not officially allowed livelihood programming in the camps, they have allowed 

humanitarian organizations to implement "cash for work" programming. These programs 

provide a flexible resource for affected households to meet needs while also building community 

resilience and supporting infrastructure development and natural resource management for 

refugees and host communities. We continue to engage the Government of Bangladesh on the 
72 

UN Comprehensive Refugee Response Framework in light of the demonstrated benefits to longterm refugee wellbeing. 
73 

Questions for the Record Submitted to 

Acting Assistant Administrator for Asia Gloria Steele by 

Representative Chrissy Houlahan (#3) 

Subcommittee on Asia, the Pacific, and Nonproliferation 

House Committee on Forign Affairs 

June 13, 2019 

According to the October 2018 report from the UN Intergovernmental Panel on Climate Change, 

people living on small islands are among the most the most affected by climate change-through 

extreme weather, sea level rise, and loss of biodiversity. These changes are causing 

unprecedented risks to vulnerable people and populations, like those living in the Maldives. Ms. 

Steele, do you agree that climate change is a threat to the people of the Maldives and other island 

nations? What is USAID doing to help the Maldives adapt to climate change and prepare for 

possible climate-caused migration? 

~; 

Climate change is a threat to the people of the Maldives and other island nations. The 

United States will continue to help our partner countries to adapt to the impacts of climate 

change, and to respond to natural disasters. With the highest point of the island nation less than 8 

feet above sea level, it is one of the most vulnerable countries in the world to the impacts of 

climate change-from sea level rise to coral bleaching to more frequent and intense weather 

events. High population density, dependence on climate-sensitive industries like fisheries and 

tourism, and over-exploitation of very limited freshwater resources further exacerbate its 

vulnerability. 

USAID, through the REGENERATE project, strengthens the management of coral reef 

ecosystems to mitigate the adverse effects of climate change in the Maldives. The four objectives 

of REGENERATE are to: (I) improve access to science and technology for decision making and 
74 

Æ 

establish policy frameworks for increasing coastal resilience; (2) increase stakeholder capacity to 

measure, monitor and adapt to climate stresses through education, training and outreach; (3) 

strengthen governance in support of decentralized management for more resilient reef 

ecosystems; and (4) establish sustainable financing mechanisms to support climate-resilient 

marine management.