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[House Document 106-313]
[From the U.S. Government Publishing Office]

106th Congress, 2d Session - - - - - - - - - - - House Document 106-313

 
     REQUEST FOR EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR FY 2001

                               __________

                             COMMUNICATION

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

HIS REQUESTS FOR EMERGENCY FY 2001 SUPPLEMENTAL APPROPRIATIONS TOTALING 
  $750 MILLION IN TOTAL GRANT ASSISTANCE TO THE GOVERNMENTS IN ISRAEL, 
  EGYPT, AND JORDAN PURSUANT TO SECTION 251(b)(2)(A) OF THE BALANCED 
  BUDGET AND EMERGENCY DEFICIT CONTROL ACT OF 1985, AS AMENDED

  November 14, 2000.--Referred to the Committee on Appropriations and 
                         ordered to be printed

                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
89-012                     WASHINGTON : 2000

                                           The White House,
                                     Washington, November 14, 2000.
The Speaker of the House of Representatives
    Sir: I ask the Congress to consider expeditiously the 
enclosed requests for emergency FY 2001 supplemental 
appropriations. These requests will advance United States 
interests in the Middle East by providing assistance to the 
Governments in Israel, Egypt, and Jordan.
    I request $750 million in total grant assistance to the 
Middle East. For Israel, I request $450 million, which will be 
used to offer support for Israel's withdrawal from Lebanon and 
strengthen Israel's long-term strategic missile defenses. For 
Egypt, I request $225 million in military assistance to support 
measures to enhance its defense capabilities. For Jordan, I 
request $25 million in military assistance and $50 million in 
economic assistance to help the Government of Jordan protect 
its borders and promote economic progress. I urge the Congress 
to consider and enact these proposals quickly.
    I hereby designate the following requests as emergency 
requirements pursuant to section 251(b)(2)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended.
International Assistance Programs
     International Security Assistance, Northern Israel 
Security Fund: $250,000,000
     International Security Assistance, Foreign 
Military Financing Program: $450,000,000
     International Security Assistance, Economic 
Support Fund: $50,000,000
    The details of these requests are set forth in the enclosed 
letter from the Director of the Office of Management and 
Budget. I concur with his comments and observations.
            Sincerely,
                                                William J. Clinton.
    Enclosure.
              Estimate No. 25, 106th Congress, 2nd Session

                 Executive Office of the President,
                           Office of Management and Budget,
                                 Washington, DC, November 14, 2000.
The President,
The White House.
    Submitted for your consideration are requests for FY 2001 
emergency supplemental appropriations for International 
Assistance Programs. A total of $750 million in new budget 
authority is requested to address emergency needs in the Middle 
East. These proposals follow considerable review by your senior 
advisers on the best means by which the United States can 
advance our interests in the Middle East.
    As described below, the following emergency supplemental 
appropriations are requested to address U.S. interests in the 
region:
     $450 million for Israel, of which $250 million is 
for the Northern Israel Security Fund and $200 million is for 
grant Foreign Military Financing.
    To protect its northern border from attack, Israel had 
occupied parts of southern Lebanon since 1982. In June, the 
Government of Israel withdrew from Lebanon in full accordance 
with the United Nations Security Council Resolution 425. The 
Government of Israel has estimated its costs of withdrawal at 
about $950 million, including amounts necessary to destroy 
former military positions inside Lebanon and to remove land 
mines and construct new fortified, defense positions in 
northern Israel. Israel requires special, one-time assistance 
to defray these costs.
    Your senior advisers recommend $250 million in a special 
budget account, the Northern Israel Security Fund, which would 
be available for immediate disbursement as a cash grant to the 
Government of Israel.
    To protect Israel more effectively from strategic threats 
from unfriendly regimes in the region, your senior advisers 
also recommend $200 million in Foreign Military Financing (FMF) 
for Israel. These funds could be used to help fund theater 
missile defense weapons systems. The use of these funds would 
be determined through discussion with the Government of Israel. 
The amount available for procurement in Israel of defense 
articles and services (off-shore procurement) would be $52.6 
million, the same percentage (26.3 percent) that is available 
to Israel through its normal FMF program.
     $225 million for the Government of Egypt in the 
grant Foreign Military Financing program.
    Your senior advisers recognize the important role of all 
parties interested in peace. The Government of Egypt, under the 
leadership of President Mubarak, has played a critical role in 
promoting peace at the Sharm el Sheikh summit and elsewhere. 
Given the increased levels of violence and tension in the 
region, your senior advisers recommend increased amounts of 
Foreign Military Financing that would enhance Egypt's port and 
naval security through the provision of equipment and 
assistance to support an integrated coastal water defense 
system.
     $50 million for the Government of Jordan in 
Economic Support Fund (ESF) assistance and $25 million in the 
grant Foreign Military Financing (FMF) program.
    As with the Government of Egypt, your senior advisers 
recommend assistance to the Government of Jordan, which under 
the leadership of King Abdullah has also played a critical role 
in promoting peace. The ESF assistance would be a cash grant to 
the Government to meet Jordan's most pressing needs. Jordan is 
facing major economic problems due to a shortfall in revenue 
from tourism and the increased cost of oil. This assistance 
will help promote employment and prosperity.
    The $25 million in FMF assistance will be used to promote 
Jordan's border security and advance its five-year 
modernization plan. The funds would be used to upgrade armored 
personnel carriers as well as air defense radar and other 
weapons systems.
    I have carefully reviewed these proposals and am satisfied 
that they are necessary at this time. Therefore, I join the 
heads of the affected agencies in recommending that you 
transmit the proposals to the Congress.
    We believe that this proposal can be funded within the new 
statutory caps established in P.L. 106-429, the FY 2001 Foreign 
Operations Act. However, I believe this request is an emergency 
under the terms of the Budget Enforcement Act, and I therefore 
recommend that you designate the amounts requested as emergency 
funding requirements pursuant to section 251(b)(2)(A) of the 
Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended.
    In addition to this FY 2001 supplemental package, your 
senior advisers believe that there should be a follow-on FY 
2002 funding component for Israel, Egypt, Jordan, and the 
Palestinians. For Israel, they recommend $350 million, while 
for Egypt, Jordan, and the Palestinians, they recommend a total 
of $150 million. Your senior advisers recommend consideration 
of additional funding for the Palestinian people next year in 
the event that the current violence has abated, because they 
believe that the Palestinian people must share tangible 
benefits from the peace process in the form of additional 
employment and economic opportunities. Your senior advisers, 
however, do not recommend asking for congressional action on FY 
2002 recommendations in this session of Congress.
            Sincerely,
                                              Jacob J. Lew,
                                                          Director.
    Enclosures.

                   International Assistance Programs

                   International Security Assistance

                     northern israel security fund

    For necessary expenses to address the withdrawal of forces 
from Lebanon, $250,000,000 for Israel: Provided, That such 
funds may be made available under any of the provisions of Part 
II of the Foreign Assistance Act of 1961, as amended, including 
chapter 4 thereof: Provided further, That such funds shall be 
available for Israel on a grant basis as a cash transfer and 
shall be disbursed within 30 days of the enactment of this Act: 
Provided further, That such funds be available notwithstanding 
section 10 of Public Law 91-672 and section 15 of the State 
Department Basic Authorities Act of 1956: Provided further, 
That the entire amount is designated by the Congress as an 
emergency requirement pursuant to section 251(b)(2)(A) of the 
Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended.
    This supplemental request for $250 million would provide 
Israel with assistance for the costs of withdrawing its forces 
from Lebanon in June 2000, in full accordance with United 
Nations Security Council Resolution 425, as confirmed by the 
U.N. Secretary-General on June 16, 2000. Special assistance to 
help Israel with defense expenditures related to its withdrawal 
from Lebanon will mitigate the risks Israel has taken for peace 
in the context of its northern borders and will help maintain 
security on the Israel-Lebanon border.
    To implement its decision to withdraw from Southern 
Lebanon, the Israeli Ministry of Defense relocated a number of 
military positions and facilities from inside Lebanon to 
northern Israel. In the process, Israel destroyed former 
military positions inside Lebanon, removed land mines, and is 
constructing several new, fortified defense positions in 
northern Israel and installing an electronic security fence 
along the Israel-Lebanon border. The Government of Israel 
states the construction, logistical, and other technical costs 
related to the withdrawal will cost about $950 million. To help 
defray these costs, Israel requires special, one-time 
assistance of $250 million.
    The rapid nature of Israel's withdrawal required the 
Government of Israel to divert resources for these immediate 
defense requirements, which precludes the possibility of 
funding some of these expenses through normal U.S. Foreign 
Military Financing. For that reason, the Administration 
requests consideration of this request in a new budget account, 
which will use the authorities provided under the provisions of 
Part II of the Foreign Assistance Act of 1961, as amended.
    The entire amount requested has been designated by the 
President as an emergency requirement pursuant to the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended.

                          Military Assistance

                   Foreign Military Financing Program

    For an additional amount for ``Foreign Military Financing 
Program'' to enable the President to carry out section 23 of 
the Arms Export Control Act, as amended, $450,000,000, to 
remain available until September 30, 2003, of which 
$200,000,000 shall be for grants only for Israel, $225,000,000 
shall be for grants only for Egypt and $25,000,000 shall be for 
grants only for Jordan: Provided, That the funds appropriated 
herein for Israel shall be disbursed within 30 days of the 
enactment of this Act: Provided further, That funds 
appropriated herein shall be available notwithstanding section 
10 of Public Law 91-672 and section 15 of the State Department 
Basic Authorities Act of 1956: Provided further, That funds 
appropriated herein shall be nonrepayable notwithstanding any 
requirement in section 23 of the Arms Export Control Act, as 
amended: Provided further, That to the extent that the 
Government of Israel requests that funds be used for such 
purposes, grants made available for Israel herein shall, as 
agreed by Israel and the United States, be available for 
advanced weapons systems, of which not to exceed $52,600,000 
shall be for the procurement in Israel of defense articles and 
defense services, including research and development: Provided 
further, That the entire amount is designated by the Congress 
as an emergency requirement pursuant to section 251(b)(2)(A) of 
the Balanced Budget and Emergency Deficit Control Act of 1985, 
as amended.
    This supplemental request for $450 million for the Foreign 
Military Financing (FMF) grant program would provide $200 
million for the Government of Israel to address long-range 
strategic threats that Israel faces from unfriendly countries 
in the region. This financing could be used for such items as 
theater missile defense and could be available for a number of 
weapons systems, such as the Arrow II anti-tactical missile 
system, boost phase launch intercept, radar aircraft and other 
items. The amount available for procurement in Israel of 
defense articles and services (offshore procurement) for the 
FMF program will be the same as in the current FMF FY 2001 
appropriation at 26.3 percent, or $52.6 million.
    For the Government of Egypt, the supplemental request of 
$225 million would enhance port and naval security through the 
provision of equipment and assistance to support an integrated 
coastal water defense system. For the Government of Jordan, the 
supplemental request of $25 million would be used to promote 
Jordan's border security and advance Jordan's five-year 
procurement plant for modernization. It would be used to fund 
the upgrade of various weapons systems, such as armored 
personnel carriers, air defense radar, and other weapons 
systems. These amounts are necessary to demonstrate American 
support for those countries in the region that have signed 
peace treaties with Israel and whose support is critical to 
preserve the peace process.
    The entire amount requested has been designated by the 
President as an emergency requirement pursuant to the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended.

                   International Assistance Programs

                   International Security Assistance

                         economic support fund

    For an additional amount for ``Economic Support Fund'' for 
assistance for Jordan, $50,000,000, to remain available until 
September 30, 2003: Provided, That funds appropriated herein 
shall be available notwithstanding section 10 of Public Law 91-
672 and section 15 of the State Department Basic Authorities 
Act of 1956: Provided further, That the entire amount is 
designated by the Congress as an emergency requirement pursuant 
to section 251(b)(2)(A) of the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended.
    The supplemental request for $50 million for the Economic 
Support Fund (ESF) would provide immediate assistance for 
Jordan's most pressing economic needs. Jordan is facing 
economic problems due to a shortfall in revenue from tourism 
and the increased cost of oil. The $50 million would be 
provided as a cash grant to the Government of Jordan. In each 
of the last two fiscal years, the United States has provided 
cash grants as part of its ESF program in Jordan.
    The entire amount requested has been designated by the 
President as an emergency requirement pursuant to the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended.

                                  
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