U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

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89–012 2000

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

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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.

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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 inVerDate 11-MAY-2000 19:59 Nov 15, 2000 Jkt 089012 PO 00000 Frm 00005 Fmt 6601 Sfmt 6601 E:\HR\OC\HD313.XXX pfrm11 PsN: HD313
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creased 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.

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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.

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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.

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INTERNATIONAL ASSISTANCE PROGRAMS

INTERNATIONAL SECURITY ASSISTANCE

ECONOMIC SUPPORT FUND

For an additional amount for ‘‘Economic Support Fund’’ for as- sistance 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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