73–687

107TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 107–142

FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED

PROGRAMS APPROPRIATIONS BILL, 2002

JULY 17, 2001.—Committed to the Committee of the Whole House on the State of

the Union and ordered to be printed

Mr. KOLBE, from the Committee on Appropriations,

submitted the following

REPORT

together with

ADDITIONAL VIEWS

[To accompany H.R. 2506]

The Committee on Appropriations submits the following report in

explanation of the accompanying bill making appropriations for

Foreign Operations, Export Financing, and Related Programs, and

for sundry independent agencies and corporations for the fiscal

year ending September 30, 2002, and for other purposes.

INDEX TO BILL AND REPORT

Page

Bill Report

Summary of the Bill ................................................................................... ........ 2

Committee Recommendations ................................................................... ........ 2

Title I—Export and Investment Assistance:

Export-Import Bank of the United States ........................................ 2 3

Overseas Private Investment Corporation ........................................ 4 4

Trade and Development Agency ............................................................... 5 5

Title II—Bilateral Economic Assistance:

Child Survival and Health Programs Fund ...................................... 6 6

Development Assistance ..................................................................... 10 19

International Disaster Assistance ..................................................... 11 35

Transition Initiatives .......................................................................... 11 37

Development Credit Authority ........................................................... 12 37

Payment to the Foreign Service Retirement and Disability Fund 13 37

AID Operating Expenses .................................................................... 13 38

Operating Expenses of the Agency for International Development,

Office of the Inspector General ...................................................... 14 40

2

Page

Bill Report

Economic Support Fund ..................................................................... 14 40

International Fund for Ireland .......................................................... 16 48

Assistance for Eastern Europe and the Baltic States ...................... 16 48

Assistance for the Independent States of the Former Soviet Union 19 51

Independent Agencies:

Inter-American Foundation ................................................................ 22 56

African Development Foundation ...................................................... 23 56

Peace Corps ......................................................................................... 23 56

Department of State:

International Narcotics Control and Law Enforcement .................. 24 56

Migration and Refugee Assistance .................................................... 25 60

Emergency Refugee and Migration Assistance Fund ...................... 26 61

Nonproliferation, Anti-terrorism, Demining and Related Programs ................................................................................................ 27 62

Department of the Treasury:

International affairs technical assistance ......................................... 28 63

Debt restructuring .............................................................................. 29 64

United States community adjustment and investment program .... ........ 66

Title III—Military Assistance:

International Military Education and Training ............................... 32 66

Foreign Military Financing Program ................................................ 33 68

Peacekeeping Operations .................................................................... 36 70

Title IV—Multilateral Economic Assistance:

Global Environment Facility .............................................................. 36 70

International Development Association (IDA) .................................. 37 71

Multilateral Investment Guarantee Agency ..................................... 37 71

Inter-American Investment Corporation ........................................... 38 73

Asian Development Fund (ADF) ........................................................ 38 73

African Development Bank ................................................................ 38 74

African Development Fund (AFDF) ................................................... 39 74

European Bank for Reconstruction and Development (EBRD) ....... 39 74

International Fund for Agricultural Development (IFAD) .............. 39 74

Department of State:

International Organizations and Programs ...................................... 40 75

Title V—General Provisions:

House of Representatives Report Requirements .............................. ........ 80

SUMMARY OF THE BILL

The Committee has recommended foreign assistance and export financing funding at a level that is $458,000 below the Administration’s fiscal year 2002 request of $15,167,751,000 in discretionary budget authority. The resulting total of $15,167,293,000 in discretionary appropriations is needed to meet the essential requirements of the United States and its President in conducting foreign

policy and meeting urgent humanitarian needs abroad.

The section 302(b) allocation for foreign operations, export fi- nancing, and related programs is $15,168,000,000 in discretionary

budget authority. The Committee recommendation is slightly below

the section 302(b) allocation and is $304,005,000 above the 2001

level.

COMMITTEE RECOMMENDATIONS

For export and investment assistance programs the Committee

has recommended a gross total of $906,000,000, which is partially

offset by collections and a negative subsidy totaling $301,000,000.

The subsidy appropriation for the Export-Import Bank is

$753,323,000, and the Trade and Development Agency is funded at

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$50,000,000. Consistent with the President’s budget request, the

Committee has provided no new subsidy appropriations for the

Overseas Private Investment Corporation.

The Committee has recommended $1,169,796,000 of the

$1,209,796,000 requested for the international financial institutions. The overall level is $22,917,000 above the fiscal year 2001

enacted level and $40,000,000 below the request.

For development and humanitarian assistance, the Committee

has recommended a total of $3,356,380,000 of which $1,387,000,000

is for child survival and health programs. Another $1,098,000,000

is for longer-term development assistance. The Committee has also

included $200,000,000 for disasters worldwide and $40,000,000 for

transition initiatives. The Committee has included $224,000,000 for

debt restructuring for poor countries and a tropical forestry debt

relief program.

The Committee has continued its highly effective Child Survival

and Health Programs Fund. The account is designed to ensure that

there will not be reductions in these vital programs as the overall

bilateral assistance program is constrained. The emphasis is on

programs that directly affect younger children and on accelerating

efforts to eradicate diseases that threaten younger children and

caregivers alike. The account now includes population assistance,

while basic education for children will be funded through the Development Assistance account. It does provide for a grant to

UNICEF at a level of $120,000,000.

The Committee has included a total of $768,000,000 in assistance

to the Independent States of the Former Soviet Union, and

$600,000,000 for Eastern Europe and the Baltic States.

The Committee has recommended a total of $730,000,000 for refugee programs.

For economic assistance under the Economic Support Fund, the

Committee has recommended a total of $2,199,000,000.

The Committee has recommended $311,000,000 for a Nonproliferation, Anti-terrorism and Demining account which includes

funding for the Nonproliferation and Disarmament Fund, anti-terrorism assistance, demining activities, United States participation

in the Korean Energy Development Organization (KEDO), and the

U.S. voluntary contribution to the International Atomic Energy

Agency (IAEA).

For Foreign Military Financing, the Committee has recommended a grant program of $3,627,000,000.

TITLE I—EXPORT AND INVESTMENT ASSISTANCE

EXPORT-IMPORT BANK OF THE UNITED STATES

SUBSIDY APPROPRIATION

Fiscal year 2001 level ......................................................................... $865,000,000

Fiscal year 2002 request .................................................................... 633,323,000

Committee recommendation .............................................................. 753,323,000

ADMINISTRATIVE EXPENSES

Fiscal year 2001 level ......................................................................... $62,000,000

Fiscal year 2002 request .................................................................... 65,000,000

Committee recommendation .............................................................. 63,000,000

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The Committee is recommending a subsidy appropriation for the

Export-Import Bank of $753,323,000 and an appropriation of

$63,000,000 for administrative expenses. Taken together, the recommended appropriation for the Eximbank is $116,677,000 less

than the fiscal year 2001 level and $118,000,000 above the request.

Of the $231,677,000 cut to the subsidy appropriation requested

by the President, approximately $112,000,000 is a reduction in

amounts needed by the Eximbank due to changes in the risk factors as estimated by the Office of Management and Budget and required under the Federal Credit Reform Act. The Committee recommends restoring $120,000,000 to the requested subsidy appropriation. The Committee expects that this level of subsidy will support a projected level of Eximbank authorizations of

$12,400,000,000 in 2002, approximately $1,000,000,000 higher than

the projected authorizations supported by the request, and approximately $2,000,000,000 higher than the estimated fiscal year 2001

levels.

The Committee has continued prior year language limiting the

export of nuclear technology or fuel to certain countries.

The Committee provided no additional funds for a tied-aid ‘‘war

chest’’. The estimated $321,800,000 remaining ‘‘war chest’’ balance

for tied-aid purposes may be used to support loans. If more funds

are needed for the war chest, the Committee will promptly consider

any additional requests from the President.

The Committee is concerned about proposals in the President’s

request including a combination of higher fees, less guarantee coverage, and value-added tests. The Committee urges the Chairman

of the Eximbank to conduct test trials of these proposals on a limited basis and directs Eximbank to report back the findings to the

Committee on a semi-annual basis.

The Committee is concerned about the U.S. position in OECD negotiations for an agreement on ‘‘unproductive expenditures’’ with

the aim of preventing a recurrence of unsustainable debt burdens

in Heavily Indebted Poor Countries (HIPCs). The Committee urges

the Administration to take a position in the OECD negotiations

that is not counter to US foreign policy goals and debt relief initiatives.

OVERSEAS PRIVATE INVESTMENT CORPORATION

NONCREDIT ACCOUNT

Fiscal year 2001 level ......................................................................... $38,000,000

Fiscal year 2002 request .................................................................... 38,608,000

Committee recommendation .............................................................. 38,608,000

PROGRAM ACCOUNT

Fiscal year 2001 level ......................................................................... $24,000,000

Fiscal year 2002 request .................................................................... ............................

Committee recommendation .............................................................. ............................

The Committee is recommending no subsidy appropriation for

the Overseas Private Investment Corporation’s (OPIC) direct and

guaranteed loan credit programs, and it is recommending

$38,608,000 for administrative expenses, the same level as the request.

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OPIC has $24,000,000 in carryover funds available to use in

2002, therefore the request and the Committee recommendation for

no appropriation should result in no reduction in the program level

from 2001. OPIC subsidy appropriations are available for 2 years,

so there will be no carryover into 2003, and regular appropriations

will be required again next year.

The Committee continues prior year language required by the

Federal Credit Reform Act and addressing representation expenses

and availability of funds.

As in last year’s report, the Committee directs OPIC to continue

to provide on a semi-annual basis written reports including the following information for each investment fund: the identity, selection

process, and professional background of current and past managers; the fees and compensation currently provided to senior management; the amount of OPIC guarantees and actual investments

made at the end of the previous month; and any additional observations that OPIC may want to include.

OPIC AND THE ENVIRONMENT

The Committee encourages OPIC to provide increased support

within the power and energy sector for investments using American technology that promotes a cleaner environment. Special attention should be given to the use of proven geothermal, small

hydro, wind, biomass and solar technologies. The Committee urges

OPIC to continue over the next year to review and strengthen its

policies regarding the energy and power sectors as they relate to

the environment and private sector infrastructure. The ongoing review should reflect the comments of Congress and the public, as

well as the Executive branch.

FUNDS APPROPRIATED TO THE PRESIDENT

TRADE AND DEVELOPMENT AGENCY

Fiscal year 2001 level ......................................................................... $50,000,000

Fiscal year 2002 request .................................................................... 50,024,000

Committee recommendation .............................................................. 50,024,000

The Committee is recommending $50,024,000 for the Trade and

Development Agency (TDA), an increase of $24,000 above the 2001

level and the same as the request. In collaboration with the U.S.

National Institute of Standards and Technology, TDA is encouraged to support United States participation in the development of

national technical standards compatible with American goods and

services in key transition country markets.

TITLE II—BILATERAL ECONOMIC ASSISTANCE

FUNDS APPROPRIATED TO THE PRESIDENT

AGENCY FOR INTERNATIONAL DEVELOPMENT

REVISED STRUCTURE OF DEVELOPMENT ASSISTANCE ACCOUNTS

The Committee provides two accounts for longer-term development assistance programs managed by the Agency for International Development. As in fiscal year 2001 and as requested in

the President’s budget, the bill includes an account for child surVerDate 11-MAY-2000 01:23 Jul 18, 2001 Jkt 073687 PO 00000 Frm 00005 Fmt 6659 Sfmt 6602 E:\HR\OC\HR142.XXX pfrm02 PsN: HR142
6

vival and disease prevention and treatment activities. The Committee recommends adding reproductive health to this account in

2002. The bill also includes a separate general development assistance account for basic education, agriculture, energy, environment,

trade and other development programs in Africa, Latin America

and Asia. For the first time in 5 years, the Development Assistance

account includes basic education for children.

Two existing regional accounts jointly managed by the Department of State and the Agency for International Development are

included elsewhere in title II under ‘‘Other Bilateral Assistance’’. The Committee utilizes the regional accounts to fund most economic and political cooperation with Russia and the independent

states of the former Soviet Union as well as the former captive nations of the Soviet Empire in Central Europe.

There are two other structural changes from the budget request.

Resuming a long-standing practice, the Committee again includes

separate accounts under ‘‘Independent Agencies’’ for the InterAmerican Foundation and the African Development Foundation.

The President’s request proposed to fund the foundations through

transfers from ‘‘Development Assistance’’.

As it has for the past six years, the Committee again includes

funding for long-term development assistance in sub-Saharan Africa, other than child survival and health programs, in the global

‘‘Development Assistance’’ account. It encourages the use of the

special authorities contained in the ‘‘Development Fund for Africa’’

authorization for AID activities in Africa.

Finally, authority is provided for the United States to make contributions from the Child Survival and Health Programs Fund to

three international health funds: The Vaccine Fund [associated

with the Global Alliance for Vaccines and Immunizations (GAVI)];

the International AIDS Vaccine Initiative; and a proposed global

trust fund to fight HIV/AIDS, malaria, and tuberculosis. The President’s budget request would fund the latter fund as a separate account under the Department of the Treasury.

GLOBAL DEVELOPMENT ALLIANCE

The Committee is supportive of AID’s efforts to enhance its coordination with private companies, foundations, faith-based groups,

and volunteer organizations. The Committee has encouraged, and

AID has undertaken, such partnerships for many years. The Committee is intrigued by the outlines of the Global Development Alliance (GDA) proposal, which is characterized as an attempt to

change the way AID implements its assistance mandates. Until

sufficient details about the proposed scope and operations of the

GDA are made available to the Committee for its review and, if

necessary, further consultation with the Agency, no program funds

are available for reservation of set-asides from this or prior year

Acts to implement GDA. The Committee has no objection to the use

of reasonable amounts from ‘‘AID Operating Expenses’’ to properly

define and identify the proposed uses of GDA.

CHILD SURVIVAL AND HEALTH PROGRAMS FUND

Fiscal year 2001 level ......................................................................... $963,000,000

Fiscal year 2002 request .................................................................... 991,000,000

Committee recommendation .............................................................. 1,387,000,000

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The Committee recommends $1,387,000,000 for the renamed

‘‘Child Survival and Health Programs Fund’’, an amount that is

$396,000,000 above the request under the fiscal year 2001 account

structure and $169,000,000 above the amount enacted for 2001

under the revised account structure. The recommendation includes

authority for United States contributions to three international

health funds. The Child Survival and Disease Programs Fund is a

Congressional initiative that the President now includes in the

budget request. As a Committee priority this year, a detailed justification of the recommended increase is presented below.

OVERVIEW OF HIV/AIDS ASSISTANCE

As it has for many years, the Committee continues to support the

fight against HIV/AIDS through United States Government (bilateral) assistance programs managed by the Agency for International

Development. In other appropriation bills, additional support for

the fight against HIV/AIDS is provided through the Centers for

Disease Control and the National Institutes of Health. AID works

with both the CDC and the NIH in its overseas operations. All of

these bilateral programs are fully operational today; together they

are the worldwide leaders in the field.

The Committee has provided a total of $474,000,000 in this bill

for HIV/AIDS, of which $434,000,000 is funded through the Child

Survival and Health Programs Account. Another $40,000,000 is

provided, as requested in the President’s budget, through other

AID-managed accounts, such as the Economic Support Fund, International Disaster Assistance, and regional accounts for Eastern Europe and the former Soviet Union. By comparison, last year the

Committee recommended a total of $210,000,000 and the final conference agreement provided $315,000,000 in the bill for the same

purpose. Overall, the fiscal 2002 recommendation of $474,000,000

for HIV/AIDS is $45,000,000 above the President’s request of

$429,000,000.

Again this year the Committee recommendation allows for a

transfer of funds to a proposed multilateral trust fund for health.

The fund most likely to be established is a multilateral Health

Trust Fund (allocated between 20 percent for TB and malaria and

80 percent for HIV/AIDS) advocated by the President of the United

States and the Secretary General of the United Nations. The President has requested $100,000,000 for this purpose, and full authority is provided herein to fulfill that request. The Committee assumes that $80,000,000 will be made available for the trust fund

proposal from the Child Survival and Health Programs Fund in

this bill, of which $20,000,000 for malaria and TB is allocated

under the ‘‘Other Infectious Diseases’’ category, and $60,000,000 is

allocated under the ‘‘HIV/AIDS’’ category. The source for the remaining $20,000,000 for the proposed trust fund, as requested by

the President, would be the unused $20,000,000 provided in last

year’s Child Survival and Disease Programs Fund for a World

Bank HIV/AIDS trust fund.

If the latest proposal for a multilateral trust fund for HIV/AIDS

and related infectious diseases does not come to fruition within 12

months of enactment, the entire $80,000,000 authorized for that

purpose in this recommendation could be used promptly by the

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Agency for International Development for its ongoing bilateral programs to combat HIV/AIDS, malaria, and TB.

EXPLANATION FOR INCREASE ABOVE FISCAL YEAR 2001 LEVEL

The Committee’s recommendation is higher than the 2001 level

because of three continuing developments over the past two years.

First, there is a growing willingness in many poor and developing

nations to address the threat each faces from tuberculosis/HIV/

AIDS and other infectious diseases. A few more cases are being reported of nations reversing the spread of HIV/AIDS, but the Agency for International Development has placed too little attention on,

and provides minimal support for halting, emerging epidemics. The

Committee urges AID to focus on emerging concentrations of HIV,

utilizing best practices used by nations and communities that have

actually halted and reversed the number of victims.

Secondly, private American foundations and international commercial vaccine producers are now working with AID, the World

Health Organization, and UNICEF to save children by reducing

the cost and increasing the supply of vaccines that are currently

used mostly in industrial countries because of expense. Because of

the investments funded by this account in prior years, absorptive

capacity in a number of poor nations is beginning to increase to the

extent that they can begin to limit the spread of TB/HIV and properly administer vaccines. Such improvements in absorptive capacity

cannot be sustained or extended without additional investment in

surveillance and institutional capacity.

Finally, the Committee is aware that the number of vulnerable

children in need of international and local support is increasingly

evident in many regions. In Africa, war and the impact of TB/HIV

is generating a generation of child soldiers and orphans in several

nations. International assistance may help adult survivors socialize

and educate such vulnerable children, although at present there

are few precedents for effective care and training in such dire situations. However, communities affected by HIV are only now beginning to become a major focus of United States development strategies. In Eastern Europe, Central Eurasia, and Southeast Asia, the

sharply declining economic situation among many families in recent years has left more children in poorly funded orphanages, living on the streets, or becoming victims of sexual predators and

drug dealers. Solutions to the tragedy of vulnerable children must

be local, but voluntary organizations whose private donations are

supplemented by AID can often expedite those solutions and provide desperately needed material support.

ESSENTIAL ROLE OF FREE MARKET ECONOMIC GROWTH IN

DEVELOPMENT

As popular as the Child Survival and Health Programs Fund is

with the American people, the Committee has resisted appeals to

increase its funding more rapidly. The Child Survival account is

only one part of the U.S. effort to help others work toward the

standards of living most Americans have achieved already. The

Committee recognizes that the long-term benefits of the Fund are

limited unless there are future jobs and income for the children we

help when they grow up to be adults. Continuing AID support for

free market approaches to economic growth remains essential to

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complete the work of child survival. In each poor country helped by

American child survival activities, a balanced assistance program

also requires cooperation to provide reasonably priced and reliable

food, water, cleaner power, and communications as well as credit.

ALLOCATION OF CHILD SURVIVAL AND HEALTH PROGRAMS FUND

Unless modifications are subsequently notified and agreed to by

the Committees on Appropriations, fiscal year 2002 appropriations

for the Child Survival and Health Programs Fund are deemed to

be allocated as follows:

Category Allocation

Child Survival and Maternal Health ................................................ $295,000,000

Vulnerable children ............................................................................ 25,000,000

HIV/AIDS ............................................................................................ 434,000,000

Other Infectious Diseases .................................................................. 1 155,000,000

Reproductive Health/Voluntary Family Planning ........................... 1 358,000,000

Grant to UNICEF ............................................................................... 120,000,000

Total in this account ................................................................... 1,387,000,000

Other CSD activities in ESF ............................................................. 50,000,000

CSD activities in regional accounts .................................................. 45,000,000

Total in all bilateral accounts .................................................... 1,482,000,000 1The two categories indicated include undetermined amounts for TB prevention among persons with HIV/AIDS and for treatment and management of sexually transmitted diseases that

also may be included in the HIV/AIDS category.

DEFINITION OF THE BUDGET CATEGORIES WITHIN THE CHILD

SURVIVAL AND HEALTH PROGRAMS FUND

In order to clarify the range of activities categorized in the above

allocations, the Committee, in consultation with AID, provides the

following explanation:

1. CHILD SURVIVAL AND MATERNAL HEALTH

Primary causes of morbidity and mortality for children and mothers

Supporting key child health and survival interventions that focus

on prevention, treatment, and control of the five primary childhood

killers: diarrheal disease, acute respiratory infection, malnutrition,

malaria (directed primarily at children) and vaccine preventable

diseases;

Introducing environmental health interventions to prevent the

spread of childhood diseases from environmental factors such as

contaminated water; and

Improving maternal health to protect the outcome of pregnancy,

neonatal and young infants, and to save the lives of mothers, by

improving maternal nutrition, promoting birth preparedness, improving safe delivery and postpartum care, and managing and

treating life-threatening complications of pregnancy and childbirth.

Micronutrients

Supplementing, fortifying and modifying dietary behaviors to increase intake of key micronutrients, particularly vitamin A, iron,

iodine, folic acid, and zinc.

10

1Other accounts (e.g., Development Assistance and Economic Support Fund) support programs addressing the issues of children affected by violence and/or trafficked for illicit purposes.

Polio eradication

Partnering to strengthen polio eradication and vaccination programs;

Supplemental polio immunization campaigns and improving routine immunization; and

Improving acute flaccid paralysis surveillance, response and linkages with other disease control programs.

2. VULNERABLE CHILDREN 1

Care and protection of children who are displaced or vulnerable

with an emphasis on strengthening family and community capacity

in identifying and responding to special physical, social, educational, and emotional needs including:

Under the Displaced Children and Orphans Fund, children affected by war, including child soldiers, as well as orphaned, abandoned and street children;

Blind children;

Orphanages in Europe and Eurasia;

Trafficking of young women and children; and

Abusive child labor.

3. HIV/AIDS

Prevention

Expanding behavior change interventions to prevent and mitigate the impact of HIV/AIDS;

Preventing and managing sexually transmitted diseases (STDs);

Preventing and managing TB and other opportunistic diseases

related to HIV/AIDS; and

Reducing mother-to-child transmission of HIV/AIDS.

Care and Treatment

Increasing the capacity of public and private sector organizations, particularly at the home and community level, to prevent

HIV transmission and support persons living with HIV/AIDS, their

caregivers, families and survivors;

Treating opportunistic infections, primarily tuberculosis, in persons living with HIV/AIDS;

Conducting pilot programs for the care and treatment of persons

living with HIV/AIDS;

Entering into cooperative agreements and parallel financing alliances with the private sector to obtain needed commodities for sustained treatment of persons living with HIV/AIDS; and

Establishing microcredit programs designed for communities

with a high incidence of persons living with HIV/AIDS.

Caring for infected children, and for communities severely affected by HIV/AIDS.

Surveillance

Increasing the quality, availability, and use of evaluation and

surveillance information.

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4. OTHER INFECTIOUS DISEASES

Tuberculosis (TB)

Improving control of tuberculosis at the country level by expanding the application of the Directly Observed Therapy Short Course

(DOTS) strategy and strengthening local capacity;

Developing and testing alternative approaches for TB control;

Improving surveillance of TB and of multi-drug resistant TB

strains;

Conducting research to identify improved technologies/methods

for TB diagnosis and treatment; and

Preventing and treating TB in persons with HIV/AIDS and their

caregivers.

Malaria

Improving prevention, control and treatment of malaria and

other infectious diseases that are not currently vaccine preventable.

Antimicrobial resistance and infectious diseases surveillance

Improving interventions to reduce the spread of antimicrobial resistance; and

Improving capacity for surveillance and response for infectious

diseases, including at the local level.

5. REPRODUCTIVE HEALTH/VOLUNTARY FAMILY PLANNING

Expanding access to, and improving the quality of voluntary family planning programs;

Supporting related reproductive health services such as integrating family planning with antenatal, neonatal, and post-partum

care, integrating family planning with HIV/AIDS and STD programs, eliminating female genital cutting, and supporting postabortion care;

Providing information and services for families experiencing difficulty in conceiving children, including programs to treat non-infectious diseases that impede fertility;

Forecasting, purchasing, and supplying contraceptive commodities and other materials necessary for reproductive health programs; and

Fostering conditions to create favorable policy environments, improve quality, strengthen systems, and contribute to the sustainability of family planning and other reproductive health programs.

NOTE: The population funds of the Child Survival and Health Programs Fund are

not to be used to finance, support, or be attributed to the performance or promotion

of abortion as a method of family planning, or to pay for biomedical research which

relates to the performance of abortion as a method of family planning (although epidemiological or descriptive research to assess the incidence, extent or consequences

of abortions is permitted).

PROMOTING THE INTEGRITY OF THE CHILD SURVIVAL FUND

The previous AID Administrator appointed a coordinator of activities related to the Child Survival and Disease Programs Fund,

as the Committee directed two years ago. The Committee expects

the current Administrator to appoint a coordinator for all child survival and health programs managed by AID, or, alternatively, to

12

establish a separate bureau to manage central programs, provide

technical support to child survival and health programs in the

field, and to act as liaison with the Committee on all child survival

and health programs and activities managed by AID, regardless of

the funding source.

More remains to be done by AID management. The budget justification lacks detailed information, necessary for purposes of

being used as a baseline for reprogramming and notification proposes, concerning numerous activities that would be funded from

the Child Survival and Health Programs Fund.

Proposed activities included in the fiscal year 2002 budget justification combine programs, projects, and activities funded from

this account with programs, projects, and activities funded from

other funding sources. There is inadequate information, with regard to many ongoing and proposed activities, to allow the Committee to identify the differences in utilization of the individual accounts. The May 2002 AID documents characterized as a budget

justification will not be accepted as valid for fiscal year 2002 programs for purposes of section 515 until supplemental budget narratives and tables are transmitted to the Committee in the proper

form.

The Committee is again including bill language that prohibits

the use of certain funds in this account for nonproject assistance,

or cash grants, to governments. The provision of cash grants as

general budget support for governments is no longer an appropriate

development tool, given current funding constraints. To the extent

that cash grants are necessary for countries in transition or for

specific foreign policy goals, funds are available through the ‘‘Economic Support Fund’’.

CHILD SURVIVAL AND MATERNAL HEALTH: FORMER SOVIET UNION

The Committee continues to be concerned about the low priority

assigned to declining maternal and environmental health conditions and the increasing incidence of TB/HIV/AIDS in Russia,

Ukraine, and the Central Asian republics. The positive results

achieved with the small amounts already spent for such programs

in recent years have been dramatic. More can be done with Global

Bureau core funds to complement funding provided by the regional

accounts. The Committee has included bill language regarding a

minimum level of $45,000,000 to be allocated for child survival and

health programs within the separate account, ‘‘Assistance to the

Independent States of the Former Soviet Union.’’

CHILD SURVIVAL AND MATERNAL HEALTH: MICRONUTRIENTS

The Committee supports increased funding for the vitamin A, iodine and other micronutrient deficiency programs. More than 250

million children are vitamin A deficient, increasing their risk of severe illness, blindness and death. Vitamin A is a low-cost solution

to many easily preventable diseases. The Committee recommends

that AID make every effort to provide $30,000,000 from all accounts for the overall United States micronutrient program.

The Committee notes that iodine deficiency disorder (IDD) is the

leading preventable cause of mental retardation in children. The

major remaining regions with iodine deficiency are in the former

Soviet Union and southeast Europe and regions of Africa and

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South Asia. Private funds raised by Kiwanis International and implemented by UNICEF are already saving 10 million children a

year from mental retardation. The Committee recommends that in

order to help meet the IDD partnership goals, AID provide a total

of at least $2,500,000 from the Child Survival and Health Programs Fund and $2,225,000 from regional accounts for the

Kiwanis/UNICEF IDD partnership program.

CHILD SURVIVAL AND MATERNAL HEALTH: POLIO ERADICATION

The Committee recommendation includes within the child survival and maternal health allocation not less than $25,000,000 for

the final phases of the program initiated by the Committee in fiscal

year 1996 to eradicate polio by 2006.

CHILD SURVIVAL AND MATERNAL HEALTH: VACCINES AND

IMMUNIZATION

The Committee is aware that at least three million children die

each year because they do not receive life-saving immunizations.

Over many years, the Committee has funded procurement of polio

and other childhood vaccines directly through AID and indirectly

through the grant to UNICEF. Last year the Congress recommended that up to $50,000,000 be provided to the Global Fund

for Children’s Vaccines (now The Vaccine Fund) in support of the

Global Alliance for Children’s Vaccines to help close the gap between children who receive immunizations and those who do not.

The Global Fund provides resources to support the international,

public and private partnership recommendations provided to GAVI.

Since its initiation a year ago, more than $300,000,000 for 21 countries has been committed for immunization programs—potentially

saving as many as one million lives a year. The Committee strongly supports continued funding for this program, and recommends

that up to $60,000,000 be provided to The Vaccine Fund in fiscal

year 2002.

VULNERABLE CHILDREN

The Committee directs AID to allocate $25,000,000 for displaced

children and orphans and blind children in fiscal year 2002. A substantial part of these and other available resources are to be used

in Romania, the former Yugoslavia, Moldova, Ukraine, Russia, and

Mongolia. AID has recently initiated innovative programs in most

of these countries at the urging of Congress, and the Committee directs AID to adequately fund these programs in fiscal year 2002.

Care for displaced children and orphans is limited in these countries and in parts of Africa. Basic medical supplies are scarce at

most institutions around the world. In some cultures, orphans are

considered outcasts, especially those with disabilities of any type.

Some children can become healthy with proper medical attention

and returned to their families or placed with domestic or foreign

families through adoption.

Families with mentally or physically disabled children would

benefit from community support programs such as Special Olympics.

The Committee encourages AID to expand its support of private

voluntary organizations, which seek to improve the health and

14

quality of life of such children. To reinforce the suggestion in last

year’s report concerning these particularly vulnerable children, the

Committee urges AID to provide up to $2,000,000 for support of organizations working in this sector.

Older children permanently placed in orphanages are often dismissed from state care and thrown out on the streets to survive

without skills. Most teenage orphans find that their only chance for

survival is to participate in criminal acts, including prostitution

and selling drugs. United States assistance in establishing a limited number of vocational-technical centers will teach these orphans the necessary skills to become productive members of society.

According to the World Health Organization there are 1.5 million

blind children around the world. Another 7 million children suffer

from low levels of vision. The Committee recognizes the work being

done by Helen Keller Worldwide and other organizations to assist

blind children and children with low levels of vision. These children

can be helped through simple and inexpensive methods of prevention and low cost care. The committee recommends that the AID

program for children’s blindness be funded at a level of $1,300,000.

HIV/AIDS PREVENTION

The Committee for several years has provided funding and encouragement to limit impact of the global HIV/AIDS epidemic in

the developing world and Eastern and Central Europe. However,

recent epidemiological reports indicate that the pandemic continues

to worsen dramatically, particularly in south and southeast Asia

and southern Africa. In response, several other donor nations are

increasing their global AIDS activities and international institutions, notably the World Bank, are moving AIDS and other infectious diseases to their priority list. Recently, the Group of Industrial Nations and the United Nations have become more fully engaged.

As with all AID programs, the fight against HIV/AIDS requires

‘‘good development partners’’. The rapid increase in HIV infection

in many poor countries can be attributed, in part, to government

leaders’ refusal to publicly acknowledge the crisis and to their slowness in dedicating resources to fight it. Government leaders have

a responsibility to their citizens to foster awareness and education,

the causes of transmission, and the scientifically proven methods

to combat it. All AID country strategies for HIV programs must include components to encourage behavioral, cultural and social

change.

The United States has long led the world’s response to HIV/AIDS

and will expand its financial and leadership commitment. For fiscal

year 2002, the Committee directs AID to increase funding for all

of its international AIDS and related TB activities from not less

than $315,000,000 in 2001 to at least $474,000,000 in 2002. Funding for UNAIDS should also be increased above its current level.

Priority uses of the additional resources should include

microbicides, reduction of mother-child transmission, support for

affected orphans, and TB. As in past years, AID should utilize to

the maximum extent community-based, nongovernmental organizations that have ‘‘on the ground’’ prevention and care programs.

15

The Committee recognizes that there is an urgent need for the

development of HIV and STD prevention methods within women’s

personal control. Topical microbicides, currently in trial stages in

a number of countries, have emerged in the last decade as a promising new technology for preventing STDs, including HIV. Using its

existing infrastructure and expertise, AID can contribute a great

deal to enhancing the feasibility of successful clinical trials in developing countries. At the urging of Congress, AID substantially increased its investment in microbicides research and development in

2001, and the Committee urges AID to make these investments an

integral part of bilateral U.S. HIV/AIDS assistance. The Committee

directs AID to devote not less than $15,000,000 from all accounts

to microbicides research and development.

The Committee recommends that USAID devote appropriate resources to support efforts to build capacity of the nursing workforce

in sub-Saharan Africa. The Committee recognizes the utility of a

sound nursing corps in addressing AIDS not only as a disease, but

as a public health problem. Nurses and other health workers are

often the first and only contact the population of developing countries have with the health care system. In their role, not only can

they assist in diagnosis and treatment of AIDS, but also in fostering behavioral change and developing care systems that contain

the spread of the disease. Also, the Committee continues to support

efforts to provide a safer blood supply and single-use needles in the

Republic of South Africa and other countries impacted by HIV/

AIDS. These efforts should include evaluation of promising blood

decontamination technologies.

The fight against HIV/AIDS takes place on many fronts. More

education about causes, effect and treatment of HIV/AIDS is needed in many regions, especially in Sub-Sahara Africa and the Caribbean. The use of unbiased, accurate, and culturally sensitive media

is one way to improve the spread of information on HIV/AIDS. The

Committee supports programs for independent media training and

public service announcements to meet these needs.

HIV/AIDS: CARE AND TREATMENT

The Committee is aware of and supports AID’s pilot programs in

the care and treatment of persons with HIV/AIDS and expects that

the number of these pilot programs will expand as successful models are developed. The Committee encourages AID to enter into cooperative agreements and parallel financing alliances with the private sector to obtain needed commodities for sustained treatment

of persons with HIV/AIDS.

HIV/AIDS: BURMA AND THE RESURGENCE IN SOUTHEAST ASIA

The Committee is concerned that HIV/AIDS is spreading rapidly

in Asia, and that Burma is playing a pivotal role in its spread. In

Thailand, a country thought to have the epidemic under control, recent evidence shows a resurgence of the disease. Burma itself faces

devastating epidemics of heroin addiction and HIV/AIDS infection,

with the HIV virus spreading rapidly from intravenous drug users

to the wider population. Last year the Burmese regime officially acknowledged that HIV/AIDS is a serious problem in Burma; however, it has made no official effort to contain the disease. The government’s tacit support for heroin production, the virtual collapse

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of the Burmese economy, the continuing wars between the regime

and various ethnic groups, and the massive migration of Burmese

seeking safety or work in neighboring countries have all contributed to the spread of the epidemic.

The Committee believes that conditions in Burma represent a

significant threat to efforts to contain the spread of the disease in

neighboring countries like India, China, Thailand and even Cambodia. The Committee requests that, within 90 days after the enactment of this Act, the Agency for International Development, in

consultation with the Department of State, provide a report to the

Committee on the Burma HIV/AIDS epidemic and proposed steps

the U.S. Government could take, working with other donors and

without providing direct support to the Government of Burma, to

address the HIV/AIDS epidemic in Burma.

HIV/AIDS: CHILDREN AFFECTED BY HIV/AIDS

AIDS is devastating the family structure in many countries, leaving millions of children orphaned and more vulnerable to HIV infection, poor health, little schooling, and even sexual exploitation.

Approximately 600,000 newborns in the developing world contracted the virus just last year. Presently, there are 5,000,000 orphans in Africa due to AIDS, and by the year 2010 it is estimated

that there will be 26,000,000 orphans in Africa as a result of AIDS.

The Committee recognizes that community childcare through mobilization in high-incidence AIDS communities is one of the most important interventions available to provide care and support for the

future orphans of Africa. Therefore, the committee urges AID to favorably consider a proposal by the private voluntary organization,

Hope worldwide, to replicate and extend its world-famous Soweto

Community Childcare program for children affected by AIDS to

other sites in other cities, including Abidjan, Lagos, and Nairobi.

The Committee strongly supports efforts to assist these and other

children affected by HIV/AIDS, and urges that not less than

$20,000,000 be provided to assist AIDS orphans and HIV positive

children.

HIV/AIDS: PROGRAM ACCOUNTABILITY

The increased funding being made available for HIV/AIDS programs requires that AID and other federal agencies be especially

focused on accountability for the funds expended. The Committee

strongly recommends that the design and award of all bilateral and

multilateral HIV/AIDS programs from accounts managed by AID

be based on measurable, achievable goals. The Committee directs

that AID transmit a written report to the Committee not later than

March 1, 2002, describing in detail its plans for utilizing funds allocated for HIV/AIDS programs, including its proposals for programs

in countries with emerging epidemics, and the benchmarks established to measure the success of the programs. On the same date,

the Director of the Office of Management and Budget is requested

to submit a parallel report with regard to planned obligations of

funds through a multilateral Health Trust Fund. Such benchmarks

should include, as soon as feasible, the impact of programs on HIV

infection rates and mortality. The Committee expects the Agency

and OMB to formally consult with it on the contents of the reports

not later than January 15, 2002.

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HIV/AIDS SUMMARY

The Committee anticipates that at least $40,000,000 for HIV/

AIDS will be funded from the Economic Support Fund, regional accounts, and accounts administered by the Bureau for Humanitarian Response. Together with not less than $434,000,000 from

the Child Survival and Health Programs Fund, the bill total for

HIV/AIDS should be at least $474,000,000. The Committee directs

that AID include all HIV/AIDS-related activities, such as TB/HIV

tuberculosis prevention and efforts to prevent and manage STDs,

in its reports on achieving these targets.

OTHER INFECTIOUS DISEASES: MALARIA

The Committee includes not less than the fiscal year 2001 level

for the prevention of malaria, a re-emerging global killer of children and a major impediment to economic development in many

poor countries. The Bureau of Humanitarian Response is urged to

provide not less than $2,500,000 for malaria from its grant program for private voluntary organizations, consistent with current

practice.

The Committee is aware of a credible proposal for scaling-up malaria prevention and control activities, addressing the urgent needs

of populations threatened by malaria who are living in areas of war

and civil-disorder, and slowing the emergence and spread of drugresistant malaria in regions of Africa, Asia, and South America.

The Committee directs the Agency to reconsider this proposal

forthwith, and to report to the Committee on the outcome of its deliberations not later than October 2, 2001.

OTHER INFECTIOUS DISEASES: TUBERCULOSIS

The Committee recognizes that tuberculosis (TB) is the major infectious killer of adults in the world, killing between two and three

million each year. This disease could result in the deaths of up to

30,000,000 people in the next decade. TB kills more women than

any other cause of mortality and is the major killer of persons with

AIDS. Many of these will be parents, whose orphans will be a burden on already stressed societies. In addition, the Committee notes

the threat to the United States from this disease due to international travel and immigration. An estimated 15 million Americans are currently infected with the TB bacteria. Therefore the

Committee includes in the allocation for other infectious diseases

not less than $70,100,000 from all accounts for programs for the

prevention, treatment, control of, and research on tuberculosis. At

least $5,000,000 should be made available for the independent

states of the former Soviet Union.

The Committee notes that the Agency for International Development is collaborating with the Gorgas Memorial Institute to promote regional TB control initiatives designed to address the global

TB epidemic—training, operational improvement, and new approaches to disease control. The Committee strongly supports the

continuation of this initiative. At least $2,000,000 is available for

these activities during fiscal year 2002.

In its last three reports, the Committee requested AID to assist

Texas and Mexico combat a particularly threatening outbreak of

tuberculosis along their border. The Agency has been responsive,

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and the Committee urges continued cooperation with the Texas Department of Health and relevant offices of the federal and state

governments of Mexico.

OTHER INFECTIOUS DISEASES: ANTIMICROBIAL RESISTANCE AND

SURVEILLANCE

The Committee supports the efforts of AID and the Centers for

Disease Control to reduce the spread of antimicrobial resistance.

The Committee is aware of the special problems of infectious diseases among patients hospitalized in Asia, Latin America, and Africa, and encourages AID to encourage the use of proven new technologies to combat antimicrobial resistance. The Committee has

been made aware of the work in this area by the Alliance for the

Prudent Use of Antibiotics (antimicrobial resistance) and the International Foundation for the Reduction of Infectious Diseases, and

suggests that AID cooperate with the Alliance and the Foundation.

In addition, AID is encouraged to continue improving capacity for

surveillance and response to infectious diseases at the national and

local levels.

INFECTIOUS DISEASES: COLLABORATIVE RESEARCH BY UNIVERSITY

MEDICAL SCHOOLS

The Committee is aware of and supports the renewed engagement of many United States university medical schools and medical research facilities in the global campaign against infectious diseases, especially those which affect children. As many contributed

greatly to domestic public health progress in earlier decades, the

Committee welcomes their interest in the new global campaign.

The Agency for International Development and multilateral

health and child survival agencies benefiting from this bill are

urged to give every consideration to detailed proposals submitted

by the relevant institutions cited in a separate section of this report following the discussion of the ‘‘Development Assistance’’ account. The Committee notes with concern the seeming inability of

the Agency to successfully collaborate, after many meetings with

senior officials and numerous prior year report directives, with

Tulane University, the University of Notre Dame, and Johns Hopkins University on their joint efforts to limit the spread of malaria.

REPRODUCTIVE HEALTH OVERVIEW

The Committee anticipates that at least $67,000,000 for reproductive health/voluntary family planning will be funded from the

Economic Support Fund, regional accounts, and accounts administered by the Bureau for Humanitarian Response. Together with

$358,000,000 from the Child Survival and Health Programs Fund,

the bill total for reproductive health should be at least

$425,000,000, as requested by the President. The Committee directs that AID include all reproductive health activities, including

those funded from other accounts in this bill, in its reports on

achieving these targets.

REPRODUCTIVE HEALTH/VOLUNTARY FAMILY PLANNING: RESTRICTIONS

The Committee has continued prior year language in the bill that

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obligated balances, be made available to any organization or program which, as determined by the President, supports and participates in the management of a program of coercive abortion or involuntary sterilization. The bill language also states that funds

cannot be used to pay for the performance of abortions as a method

of family planning or to motivate or coerce any person to practice

abortion. Further, the language indicates that in order to reduce

reliance on abortions in developing countries, population funds

shall be available only to voluntary family planning projects which

offer, either directly or through referral, information about access

to a broad range of family planning methods and services. An additional provision in the bill requires that in awarding grants for natural family planning under section 104 of the Foreign Assistance

Act, no applicant shall be discriminated against because of such applicant’s religious or conscientious commitment to offer only natural family planning.

The Committee also has continued prior year language that

states that nothing in the bill is to alter any existing statutory prohibitions against abortion which are included under section 104 of

the Foreign Assistance Act. Further, the Committee has continued

prior year language which states that project service providers or

referral agents cannot implement or be subject to quotas or other

numerical targets of total number of births, number of family planning acceptors, or acceptors of a particular method of family planning. This provision is identical to language in the fiscal year 2001

Act under the heading, ‘‘Development Assistance’’.

GRANT TO THE UNITED NATIONS CHILDREN’S FUND (UNICEF)

The Committee supports efforts to reach the child survival goals

set by the World Summit for Children. In order to implement these

goals, the Committee is recommending that not less than

$120,000,000 of the funds provided under the Child Survival and

Health Programs Fund shall be provided as a contribution in grant

form to the United Nations Children’s Fund. This does not preclude

the Agency for International Development from providing additional funding for specific UNICEF projects as may be appropriate.

DEVELOPMENT ASSISTANCE

Fiscal year 2001 level ......................................................................... $1,305,000,000

Fiscal year 2002 request .................................................................... 1,325,000,000

Committee recommendation .............................................................. 1,098,000,000

The Committee recommends $1,098,000,000 for the general account for development assistance for economic growth, agriculture,

and trade. The amount recommended is $227,000,000 below the

budget request and $76,000,000 above the fiscal year 2001 level, if

the 2001 account structure is used. The account no longer includes

population reproductive health, which is now incorporated within

the Child Survival and Health Program Fund, consistent with the

Administration’s revised assistance categories.

Funding in this account includes worldwide activities for free

market economic development, agriculture, rural development, literacy and basic education for children and adults, environment, energy, science and technology and other programs related to longerVerDate 11-MAY-2000 01:23 Jul 18, 2001 Jkt 073687 PO 00000 Frm 00019 Fmt 6659 Sfmt 6602 E:\HR\OC\HR142.XXX pfrm02 PsN: HR142
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term development. Children’s basic education programs were included last year in the Child Survival and Disease Programs Fund.

The Committee recommends the continuation of bill language to

prohibit the use of funds for any activities in contravention of the

Convention on International Trade in Endangered Species (CITES)

in order to address concerns that AID funded activities in

Zimbabwe are contributing to trade in elephant ivory. The Committee recommends the transfer of up to $12,500,000,

from the ‘‘Development Assistance’’ account, to support develop- ment credit activities instead of $25,000,000 as proposed by the

President.

BASIC EDUCATION

The Committee recognizes that educating children in developing

countries provides the foundation for sustained economic growth,

poverty alleviation, and the creation of democratic institutions.

There is also clear evidence that the collateral benefits of providing

basic education for girls, including improved child and maternal

health, lower fertility rates, reduced child labor, and increased political participation, make it one of the most effective expenditures

of U.S. foreign assistance. The Committee strongly recommends a

minimum level of $150,000,000 from this and other accounts for

basic education, and encourages AID to place particular emphasis

on programs that expand access and quality of education for girls,

enhance community and parental participation in schools, improve

teacher training, and build local management capacity. The Committee also recognizes that AID’s capacity to create and execute innovative and effective basic education programs suffered disproportionately during the reduction in personnel over the last decade,

and encourages AID to increase the number of direct hire education staff directly supporting and managing field programs.

The Committee also recognizes the importance of education in

the fight against HIV/AIDS in developing countries. The pandemic

has severely affected not only school-age children, but also the

teacher populations in sub-Saharan Africa. The Committee encourages AID to promote approaches to HIV/AIDS prevention which

recognize the central role played by schools and teachers, including

integrating information into curricula, instituting prevention programs in schools, and focusing on HIV/AIDS in teacher training institutes.

GLOBAL ISSUES: HUMAN RIGHTS AND DEMOCRACY

The Committee expects AID to give adequate weight to the

human rights and governance practices of recipient countries, including those reported in the Department of State’s annual Country Reports on Human Rights Practices.Although the Committee

believes that need and U.S. foreign policy goals should be the primary criteria for determining whether or not a country should receive assistance, the Committee also believes that the assistance—

whether through nongovernmental organizations or directly

through official channels—will have a far greater chance of truly

helping the citizens in those countries which respect the rule of law

and the rights of their people. The Committee notes the disturbing

recent trend by leaders of long-time foreign assistance recipients—

Zimbabwe, for example—to undercut democratic processes and to

21

curtail respect for human rights. Further, a number of traditional

aid recipients are currently involved in military conflicts and have

restricted the basic freedoms of their citizens. AID should continue

to give significant weight to the record of human rights and democratic development of proposed recipient countries in the distribution of assistance provided under this Act.

GLOBAL ISSUES: LITERACY AND EDUCATION

The Committee recognizes that expanding access to education,

especially combating child and adult illiteracy, is critical to longterm development.The Committee supports the work of Alfalit

International, an educational nongovernmental organization dedicated to promotion of literacy, elementary education, and community development in Africa and Latin America. Alfalit’s proven

record during the past three decades has helped significantly reduce child and adult illiteracy throughout Latin America and Africa. The Committee urges AID to provide $1,500,000 for Alfalit to

jointly develop and implement programs to combat adult illiteracy

in countries in which AID operates.

GLOBAL ISSUES: ENERGY

The Committee supports AID’s proposed investment in publicprivate sector partnerships involving hydropower energy investment in emerging markets and encourages the agency to vigorously

support such activities. The Committee recognizes the important

role that AID fulfills in creating overseas environments conducive

to U.S. investments by encouraging policy reforms. Such reforms

allow U.S. companies and financing organizations to invest in environmentally sound hydropower and the energy infrastructure needed for sustained growth. Involving responsible hydropower in the

global energy mix may also help mitigate climate change.

GLOBAL ISSUES: THE ROLE OF GIRLS AND WOMEN IN DEVELOPMENT

The Committee recognizes the importance of improving the economic and social situation of women and girls through respect for

legal rights and expanded access to educational opportunities, adequate health care, and credit. The Committee supports the work of

AID’s Office of Women in Development in these areas. Therefore,

the Committee recommends $15,000,000 for AID’s women in development programs, including funds implemented by central offices

and through overseas missions. Although AID is to be commended

for devoting considerable attention to the needs of women and

girls, additional attention is needed throughout the Agency from all

funding sources, especially in areas such as Lebanon, Pakistan,

and Central Asia.

An important component of women in development programs is

the identification of, and effective support for, women leaders in developing and post-conflict societies. These societies will reach their

full potential only when all citizens are given equal opportunity to

take leadership roles in political and civic institutions. The Committee commends the efforts of organizations such as Women’s

Campaign International, the International Women’s Democracy

Center, and the Vital Voices Global Partnership to ensure that

women are given equal opportunity to participate in emerging

22

democratic processes. The Committee recommends that AID expand its alliances with organizations that train women leaders as

it moves toward a greater emphasis on conflict prevention and developmental relief activities.

GLOBAL ISSUES: BIODIVERSITY

The Committee applauds the accomplishments of AID in integrating biodiversity and forest management in its economic and social development programs. The Committee urges AID to consider

biodiversity a high priority and is concerned with the Administration’s budget request for biodiversity programs for fiscal year 2002. The Committee urges AID to provide not less than $70,000,000 in

fiscal year 2002 for its biodiversity programs. The Committee again recommends that AID provide $500,000 to

support the Peregrine Fund’s Neotropical Raptor Center in Panama to conserve birds of prey in the Panama Canal watershed

area. The Peregrine Fund, established in 1970 as a non-profit organization, has partnered successfully with AID in the past. The

Committee notes that the Center expects to receive significant private financing for this project as well.

The Committee encourages AID to support the work of Earth

University in San Jose, Costa Rica. For more than 10 years, Earth

University has worked with more than two dozen U.S. universities

on research projects designed to balance development and conservation in the areas of tropical forest preservation, reforestation,

and biodiversity.

ECONOMIC GROWTH: OVERVIEW

The Committee considers free market economic growth, and the

AID programs designed to lead directly to growth, the Agency’s

most important work in Africa, Latin America and Asia. Simply

put, without sustained economic growth, AID’s development programs for health, population, environment and other purposes, can

have only marginal long-term benefits in poor countries.

In the near-term, the Committee continues to support the use of

AID resources for health improvement through the ‘‘Child Survival

and Health Programs’’ account. But improved social conditions of

children matter only if the future economies of these countries can

provide employment for these healthier, better educated citizens.

Therefore, the Committee encourages AID to increase funding for

free market economic development in its development programs in

each of these regions.

The Committee continues to support AID technical assistance

programs to encourage macro-level economic growth. These include

programs to assist with privatization of state-run industry and

legal and regulatory reform to modify trade and tax barriers which

stifle local entrepreneurs and which deter U.S. investment. In addition, AID technical help for improving energy, transportation, telecommunication, and finance sectors is key to directly improving the

economic climate of poor countries. Essential to this, of course, AID

must continue to search out reform-minded government leaders

without whom these programs cannot succeed.

The Committee supports the efforts of AID to better coordinate

with the US Trade Representative and other concerned agencies

the significant amounts of aid already being committed to assist

23

other countries to strengthen their trade-related laws and regulatory regimes. It is in the United States national interest to ensure that relevant economic growth funds are programmed to complement trade negotiating objectives.

AID non-project assistance programs, or cash grants, to encourage sectoral reform or to ease transitions from state control to private ownership in poor countries have had only limited success.

When governments are already committed to reform, non-project

assistance can boost these efforts in the short-term. However, attempts to encourage non-reformist governments into changing bad

policies by offering cash enticements will not work. The Committee

discourages the use of non-project assistance where access to American technical know-how is in higher demand than direct cash assistance.

ECONOMIC GROWTH: MICROENTERPRISE

Microenterprise, while unable to alter economic indicators on a

national scale, can significantly improve personal and family incomes, thus providing money for school fees, health supplies, and

more nutritious food, and stimulating economic growth at the community level. The Committee expects AID to reach the authorization level enacted by Public Law 106–309. Also, programs of importance to economic growth, such as girls’ and women’s education and

training programs, can assist in opening the marketplace to females.

ECONOMIC GROWTH: AGRICULTURE AND RURAL DEVELOPMENT

The Committee believes that agricultural development is central

to creating free market economic growth in developing countries.

By helping families grow more food that is more nutritious, hunger,

malnutrition, and disease among women and children become less

prevalent. By increasing incomes of rural families, the engine of

economic development in these countries is being started. The

Committee recognizes that AID has again included agricultural development as one of its key goals for its development programs.

The Committee believes that sustainable agricultural development is central to economic growth in Africa and to the advancement of many of the development goals addressed in this bill. Twothirds of African families live and work in rural areas and make

a living farming or in rural enterprise. Helping poor rural families

grow more food to eat means that hunger, malnutrition and disease

become less prevalent (especially among women and children).

Helping families grow more food to sell means that they can increase their incomes, participate in trade, and spur overall African

economic growth. This ultimately makes them better trading partners for the U.S.

The Committee particularly supports collaborative partnerships

of U.S. agribusiness, non-government organizations, and universities with the African private sector. Projects to promote these

partnerships leverage AID’s development resources by increasing

private sector investment of resources in developing countries, increasing economic growth and fostering stronger US/African trade

and investment ties. The Committee recommends that AID emphasize private sector development in its programs such as support for

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formation systems. For their part, U.S. universities can make an

important contribution in research, technology and human capital

development geared to economic growth.

To enhance the U.S. response to the World Food Summit commitment to help cut hunger in half by 2015, the Committee also recommends that AID emphasize the critical needs of the rural sector

(where most of the poor and hungry reside) and increase investment to that end in its programs that address rural health (including AIDS and child survival), girls education, democratization,

microenterprise development and the environment.

ECONOMIC GROWTH: DEVELOPMENT OF CREDIT UNIONS AND

COOPERATIVES

The Committee is aware of the importance of credit unions and

cooperatives in strengthening democratic, grassroots approaches for

economic development. The Committee continues to support the

sharing of U.S. cooperative expertise in efforts to help lift low income people out of poverty through mobilization of equity, savings,

and private initiative for community-based development. Credit

Unions and cooperatives administer 70 successful programs in 67

different countries, making use of $160,000,000 to leverage an additional $300,000,000 through the mobilization of local contributions.

As a critical component of technical capacity building and partnerships with U.S. credit unions and cooperatives, the Committee

encourages the Office of Private Voluntary Cooperation to maintain

funding at $6,000,000 for cooperative development organizations in

fiscal year 2002.

In response to authorizing legislation enacted last year (Public

Law 106–309), AID and the cooperative development community

are exploring new opportunities for expanded partnerships. The

Committee looks favorably on the following initiatives: programs to

better utilize overseas remittances in Mexico; the utilization of cooperative approaches that mobilize communities that are adversely

affected by the HIV/AIDS pandemic for self-help economic and social development, the use of cooperatives in utility privatization;

and use of AID’s development credit program by cooperatives.

The Committee is aware of the World Council of Credit Unions’

(WOCCU) international credit development activities, and notes

that WOCCU has cooperated with AID in the past to provide financial services to the communities previously lacking them in 20 developing countries. WOCCU currently is planning to expand its activities into South Africa and Mexico. The Committee requests that

AID consider promptly WOCCU’s proposals for programs in South

Africa and Mexico.

The Committee recognizes that cooperative and credit union development takes time to yield successful results, and is concerned

that AID interpretations of GPRA requirements specifying shortterm results do not allow adequate time for implementation, thus,

hampering the likelihood of successful programs over the longer

term.

25

ECONOMIC GROWTH: INTERNATIONAL INTELLECTUAL PROPERTY

INSTITUTE

The Committee encourages AID to provide adequate funds to

support the International Intellectual Property Institute (IIPI) in

its efforts to help developing countries establish the minimum

international standards necessary to protect and attract U.S. intellectual property industries. The past decade has seen tremendous

economic growth in intellectual property industries such as software, music and pharmaceuticals. Yet, because of an inability to

provide protection for such property, developing countries have

been largely unable to participate in this economic expansion. AID

support for IIPI training and technical assistance programs can

promote sound intellectual property systems which protect American businesses and which foster free economic growth in developing countries.

LATIN AMERICA AND THE CARIBBEAN: OVERVIEW

The Committee is pleased the Agency for International Development responded to report language from previous years urging that

greater emphasis be provided for programs in Latin America and

the Caribbean.

The Committee has been made aware of the United States-Honduran Presidential Program of Investments Alliance (USHPPIA)

and encourages AID to support this initiative. The Administrator

of AID is urged to work with the Metro Vision Economic Partnership for the implementation of this program. AID shall report to

the Committee not later than March 1, 2002, regarding this program and is encouraged to include the USHPPIA in its fiscal year

2003 budget request.

LATIN AMERICA AND THE CARIBBEAN: MEXICO

The Committee urges the Agency for International Development

and the Department of State to allocate additional funds for economic growth, rural development, and trade activities in Mexico.

An energetic response to expanded opportunities for economic cooperation with Mexico under its new Administration is likely to require more than the $6,185,000 requested for Development Assistance and $10,000,000 for the Economic Support Fund in fiscal year

2002. The Committee fully supports an expansion of the bilateral

program of economic cooperation between Mexico and the United

States.

LATIN AMERICA AND THE CARIBBEAN: GUATEMALA

The Committee renews its support for the resources necessary to

help consolidate the Guatemala peace process by promoting national reconciliation, the cornerstone of United States policy toward

Guatemala. As the Administration designs and awards contracts

and grants for its fiscal year 2002 combined program of

$34,710,000 in development assistance, child survival and health,

and economic support, the Committee requests that it take into account the continuing environment of criminal impunity and the increase in attacks against religious and human rights organizations.

Renewed emphasis on improving the Guatemalan civilian police

force and judiciary must be a top priority of U.S. assistance to

26

strengthen law enforcement and modernization of the state. The

Committee urges the Secretary of State to press the Government

of Guatemala to carry out full investigations, leading to the arrest

and trial of the perpetrators, of the recent murders of Sister Barbara Ann Ford and other U.S. citizens in Guatemala.

LATIN AMERICA AND THE CARIBBEAN: PARKS IN PERIL

The Committee notes its strong support for the existing AID

Parks in Peril program, a partnership with the private sector to

promote biodiversity conservation in imperiled ecosystems throughout Latin America and the Caribbean. The Committee believes that

protection of rare ecosystems is important from an environmental

standpoint and also serves the long-term economic interests of

these nations and the interests of the United States. AID/Parks in

Peril has worked at 37 sites in 15 different countries, comprising

more than 28 million acres. It has made significant progress at

turning ‘‘paper parks’’—those created by governments, but not adequately maintained—into genuine protected areas. Since its inception, Parks in Peril has received $37,500,000 from central and mission AID funds, formally matched by more than $14,300,000 from

The Nature Conservancy, foreign partners, and foreign governments, and has indirectly leveraged more than $268,000,000 from

non-AID sources. The Committee welcomes the prospect of ‘‘PiP

2000’’, a renewed program that seeks to extend the influence of

Parks in Peril more broadly.

LATIN AMERICA AND THE CARIBBEAN: CORPS OF ENGINEERS

The Committee is pleased that the State Department and AID

have begun to utilize the planning, engineering and design, environmental, and technical capabilities of the U.S. Army Corps of Engineers, particularly in Latin America where the Corps has existing

field offices in Honduras, El Salvador, Panama, Colombia, Bolivia,

and Peru. A partnership between the Corps and AID that takes advantage of these capabilities can significantly contribute to the

strategic interests of the United States. The Committee intends

that the State Department and AID use the Corps to a greater extent to support such activities as child survival (water and sanitation); development assistance; disaster assistance; and transition

initiatives. Further, the Committee expects that the Department of

State and AID will not establish additional engineering capabilities

for activities that can be accomplished by the Corps. The Committee again requests that AID and the Department of State report

separately within 60 days of enactment into law of this Act regarding plans to develop programs with the Corps during fiscal year

2002, including steps to develop a Memorandum of Agreement with

the Corps.

AFRICA: HORN OF AFRICA

The Committee remains concerned about the fragile food security

situation in the Horn of Africa. Famine conditions threaten more

than 16 million people in Ethiopia, Sudan, Somalia, Kenya, Uganda and Djibouti. Conflict has exacerbated these famine conditions

by hindering the delivery of humanitarian assistance and by creating scores of internally displaced people and refugees.

27

The Committee supports the efforts of The International Research Institute for Climate Prediction (IRICP) to provide assistance to AID’s Office of Foreign Disaster Assistance in predicting

likely effects of weather patterns on Africa—especially the Greater

Horn of Africa region. To further this important work, the Committee recommends that AID support implementation of a modeling effort focused on climate impacts on water, including water

supply, water-borne diseases, and agriculture, in collaboration with

the Nairobi Drought Monitoring Center. The Committee believes

these efforts can help achieve greater food security and stability in

the region. The Committee encourages AID to consider a similar

climate prediction monitoring program for southern Africa.

AFRICA: ASSISTANCE TO SOUTHERN SUDAN

The Committee believes that the Administration can and should

do more to support the democratic opposition in Sudan with the ultimate goal of bringing peace to the people of southern Sudan. The

Committee supports the inclusion of Sudan on the list of terrorist

nations and encourages the Administration to step up efforts to isolate the Khartoum regime. Further, the Committee is deeply concerned about the credible reports of trafficking of human beings

and slavery in Sudan.

The Committee continues its support for Operation Lifeline

Sudan (OLS), a multilateral effort to provide desperately needed

food and humanitarian relief to southern Sudan, funded in part by

AID’s Bureau of Humanitarian Response (BHR). However, without

the consent of the government of Sudan, OLS is unable to provide

desperately needed humanitarian aid to many opposition-controlled

regions of Sudan. The Committee urges AID to significantly increase resources to nongovernmental organizations working in

areas underserved by OLS and commends the Administration for

doing so in recent years.

The Committee also supports AID’s Sudan Transitional Assistance for Rehabilitation (STAR) program, begun in 1998, to assist

in the establishment of functioning local government and in the operation of small-scale municipal projects. The existing STAR program has supported training for leaders in the National Democratic

Alliance in the role of local government administration and in

human rights. The Committee recommends that sufficient funds be

made available to promote democratization and peace and reconciliation initiatives in the opposition controlled territories of southern

Sudan during fiscal year 2002. The purpose of these funds should

be for improved local civilian administration and governance and

to reduce conflict and ensure peace and unity in southern Sudan.

AFRICA: SIERRA LEONE AND LIBERIA

The Committee remains concerned by reports that several governments in the region, including Liberia, continue to allow for lethal military equipment to be provided to the rebels in Sierra

Leone. This action has led to the further destabilization of the region, hindered humanitarian relief delivery, and has complicated

international efforts to end the conflict in Sierra Leone. The Committee urges the Administration to make every effort to encourage

governments, especially the Liberian Government, to end their

military support for Sierra Leone rebels. The Committee has once

28

again included bill language requiring that all assistance to Liberia

be subject to the Committee’s special notification requirements.

The Committee has also included bill language prohibiting assistance to any government if the Secretary of State determines there

is credible evidence that such government has provided military

support or equipment, directly or through intermediaries, to the

Revolutionary United Front (RUF), or any other group intent on

destabilizing the democratically elected government of the Republic

of Sierra Leone or if there is credible evidence that such government has aided or abetted, within the previous six months, in the

illicit distribution, transportation, or sale of diamonds mined in Sierra Leone.

The Committee is aware of the dire situated faced by the closure

of the JFK Memorial Hospital in Monrovia, Liberia and urges AID

and the Department of State to promptly address the health crisis

in Liberia and examine options to reopen the JFK Memorial Hospital. The Committee also endorses proposals to promote democracy

and non-governmental organizations, such as the Archdiocese of

Monrovia, in Liberia.

AFRICA: ZIMBABWE

The Committee notes that in Zimbabwe the rule of law is breaking down as the ruling party uses the state machinery to intimidate, torture, and often murder its citizens. Such acts are unacceptable in a country that considers itself to be a part of the international community of free nations. The Secretary of State is commended for his vocal intervention on behalf of a democratic

Zimbabwe and is urged to follow through by mobilizing all available tools to encourage peaceful change by reinforcing the beleaguered democratic institutions in Zimbabwe. The Committee

strongly supports assistance that seeks to strengthen parliament,

an independent media, and non-governmental organizations unaffiliated with the ruling party. The State Department is encouraged

to support financially international observation and monitoring of

the upcoming presidential elections in Zimbabwe.

AFRICA: HIGHER EDUCATION

The Committee considers children’s basic education the priority

for scarce AID education resources in Africa. However, the Committee recognizes the importance of higher education to economic

growth and supports the work of AID through its Advanced Training for Leadership and Skills (ATLAS) program which brings African students to American colleges and universities. The Committee

is pleased that AID will soon begin an open and competitive procurement for the continuation of its ATLAS program in Africa. The

Committee is interested also in the development of indigenous African colleges and universities and requests AID to consider the merits of supporting the creation of a new women’s university in Africa, designed to train African women in health sciences, education,

agriculture, and business.

29

AFRICAN INITIATIVES: EDUCATION FOR DEVELOPMENT AND DEMOC- RACY INITIATIVE (EDDI) AND THE AFRICAN TECHNOLOGY AND WORK- FORCE DEVELOPMENT INITIATIVE (AFTECH)

The Committee recognizes the works of two exceptionally promising initiatives in Africa: the Education for Development and Democracy Initiative (EDDI) and the African Technology and Workforce Development Initiative (AFTECH). Through partnerships and

entrepreneurial training, with a focus on girls and women, EDDI

now operates in 31 countries and has American partners in 29

states. Scholarships have been awarded to more than 6,000 girls

and another 6,000 are poised to receive scholarships. There are

over 61 higher education partnerships, 20 technology partnerships

and four school-to-school partnerships. EDDI continues to encourage its partners to seek support from the private sector. To continue its work, the Committee urges AID to consider proposals for

as much as $40,000,000 between now and the end of fiscal year

2003 to support EDDI activities.

A long-time AID implementer, the African-American Institute

has joined with the Nairobi-based African Virtual University (AVU)

to employ new information technologies to accelerate workforce development in Africa. Under the AFTECH Initiative, the AVU would

deliver higher education and training content from cooperating

American institutions to Africans in the places where they live and

work. The AVU was initially funded by the World Bank and by

other donors. To expand its work, it needs both the proven training

experience of the African-American Institute and support from AID

missions and central bureaus. The Committee urges AID, and especially EDDI, to favorably consider proposals by AFTECH under the

same conditions as are discussed later in this report for United

States university support for developing countries.

FARMER-TO-FARMER PROGRAM IN AFRICA

The Committee notes with approval efforts made this year by

AID in collaboration with the Department of Agriculture to expand

the Farmer-to-Farmer Program in Africa. Programs that link

American universities and producers with those of other nations

are valuable tools in providing meaningful assistance to people at

a critical period of economic development. The Committee encourages the Agency to expand such programs as it increases its focus

on agriculture and rural development.

ASIA: OVERVIEW

The Committee notes that Asia (beyond the Middle East) is a region of paramount strategic and economic importance to the United

States. While Asia represents the greatest potential for growth in

U.S. exports and investment opportunities, systemic legal, social

and economic weaknesses throughout the region continue to threaten these interests. The Committee is concerned that, while the

economy of the region is largely recovering from the Asian financial

crisis, South and East Asia still contain the largest concentration

of poor people in the world, as well as the greatest land mass at

risk of environmental degradation through poorly managed growth.

The Committee reiterates that some assistance programs, such

as AID’s support for Vietnam’s implementation of its Bilateral

30

Trade Agreement with the United States, promote sound economic

growth. Such technical assistance in support of updated commercial policies and legal structures also promotes United States trade

with, and investment in, Asia. This approach to development assistance should continue to be a high priority, and the Committee

again directs the Agency to make available, for a second year,

$60,000,000 for this purpose. The Committee requests a brief report as soon as practicable on utilization of the $60,000,000 for economic growth in Asia that was provided in the fiscal year 2001 bill.

The Agency is urged to provide sufficient operating expenses to effectively manage and oversee economic growth and other commercial and trade related programs in Asia, especially those in countries where AID does not have a field mission presence.

PRIVATE AND VOLUNTARY ORGANIZATIONS

The Committee continues to support private and voluntary organizations and cooperatives in the delivery of grassroots assistance.

The Committee is aware that AID has begun to rely more heavily

on contracting arrangements for large sector-wide programs, rather

than grant programs that utilize the special expertise and local

knowledge of PVOs and cooperatives.

The Committee continues its strong support for adequate funding

for AID’s Office of Private and Voluntary Cooperation (PVC) in fiscal year 2002 at its current level. PVC manages competitive grants

for child survival, microenterprise, economic growth, cooperative

development and the Farmer-to-Farmer program.

AMERICAN SCHOOLS AND HOSPITALS ABROAD (ASHA)

The Committee directs AID to provide not less than the amount

provided in this Act for the American Schools and Hospitals Abroad

(ASHA) program in fiscal year 2001. The Committee directs that

none of these funds be reserved for programming in any future fiscal year. All funds are to be allocated and obligated in fiscal year

2002. The Committee further expects that support will be continued, as new resources are needed, for traditional recipients in countries such as Lebanon, Israel, and Egypt. The Committee expects

AID to keep it currently informed regarding institutions which

have received ASHA funding in previous years, but which continue

to have significant unexpended balances. In addition, funds should

be made available for other deserving institutions in all geographical regions as part of a competitive process.

CASS SCHOLARSHIP PROGRAM

The Committee continues to support the work of the Cooperative

Association of States for Scholarships (CASS) and supports funding

for CASS at least at the level specified in its cooperative agreement

with AID. The Committee encourages AID to work with CASS to

meet the current demand from existing program countries, and to

accommodate requests from several additional countries for services provided by the program.

COLLABORATIVE RESEARCH SUPPORT PROGRAMS

The Committee supports the continuation of the collaborative research support programs (CRSPs) and expects AID to increase

31

funding for the CRSPs in fiscal year 2002. The Committee believes

that CRSPs, such as the Peanut CRSP established in 1982, are

clearly one of AID’s best investments, funding for which should be

increased rather than reduced. The Committee notes that agricultural research and development has led to greater economic development, increased income, and a more available food supply for the

world’s poor.

INTERNATIONAL FERTILIZER DEVELOPMENT CENTER

The Committee strongly supports the fertilizer-related research

and development being conducted by the International Fertilizer

Development Center (IFDC) and urges the Administrator of AID to

make $2,300,000 available for the core grant to IFDC, a center established to support AID.

HOUSING, SHELTER, AND URBAN ACTIVITIES

The Committee commends the progress made by the Eastern European Real Property Program in the Europe and Eurasia Bureau

since 1992. As the program expands into other regions as the International Real Property Program (IRRP), the Committee recommends that other AID regional bureaus and missions seriously

consider cooperation with the IRRP as housing, shelter, and urban

activities are included in country strategies.

DAIRY DEVELOPMENT

The Committee continues its strong support for dairy development and urges AID to fund new projects in fiscal 2002 at the level

provided in fiscal years 2000 and 2001. The program has helped

the US dairy industry become more competitive through promoting

American technology, equipment, inputs and industry-based technical assistance in developing and market transition countries. At

the same time, the program has assisted producers, small dairies

and cooperatives in developing and transitioning economies for increased household incomes and nutrition, particularly women, infants and children.

The Committee directs AID to place greater emphasis on programs that link economic development programs with increased exports of US dairy products such as food ingredients, whey, non-fat

dry milk and specialty products. Opportunities for these programs

are particularly evident in Mexico, Central and South America. Examples include strengthening distribution networks; promoting indigenous products that use U.S. dairy ingredients; and building demand for dairy products though complementary USDA surplus

dairy programs.

COMMUNITY-OWNED TELECOMMUNICATIONS

The Committee believes that ensuring that developing countries,

especially rural areas of these countries, have access to modern

methods of communications is important to economic growth. The

Committee notes that community-owned telecommunications systems, as have been successfully built in rural America, are effective

in providing this access. The Committee therefore, recommends

that AID provide funding for community-owned telecommunications projects, especially where viable in South and Central

32

America through programs like the Power Line Communication

Rural Electric initiative, and that it rely upon the direct experience

of U.S. telephone cooperatives.

AGENCY RESPONSE TO REQUESTS FOR INFORMATION

The Agency for International Development and the Department

of State are directed to respond within 15 days to requests by the

Committee for additional information regarding programs, projects,

and activities in the budget justification and reprogramming requests. Such information may include the identification of and

funding provided to domestic and foreign cooperators, grantees,

and contractors under programs, projects, and activities that are

managed by regional and other central bureaus, missions, and embassies. The Committee expects AID to maintain a publicly accessible electronic database that reflects current information and financial data regarding its activities.

INTERNATIONAL EXECUTIVE SERVICE CORPS

The Committee supports the excellent work of the International

Executive Service Corps (IESC), which since 1964 has undertaken

more than 22,000 projects in 120 nations by utilizing volunteers to

assist in business development, economic growth, and technology

transfer. The Committee is concerned that AID has underutilized

the IESC as a development partner in recent years and again directs AID to renew its commitment to the IESC to ensure expansion of its projects in sub-Saharan Africa and in Latin America and

the Caribbean. AID is urged to restore an adequate core grant for

the IESC in order to ensure its continuing viability.

TORTURE TREATMENT CENTERS

Supporting treatment centers as permanent national institutions

is the best way of providing treatment services to torture victims

and advocating for the elimination of torture globally. Accordingly,

the Committee recommends $10,000,000 for AID to support foreign

treatment centers for victims of torture as authorized by the Torture Victims Relief Act and the Torture Victims Relief Reauthorization Act of 1999.

The Committee commends AID for launching a new program to

support foreign treatment centers through an allocation of

$1,500,000 for fiscal years 2000–2002. The Committee notes, however, that many of the centers operate on or near the brink of

bankruptcy. For those centers located in countries where the government has practiced torture, they also face political hostility from

their governments. The Committee recommends that AID significantly increase its direct financial support for the centers’ basic

treatment services while maintaining an adequate level of support

for training and technical assistance. The Committee directs AID

to report on implementation of this recommendation not later than

February 15, 2002.

The Committee requests AID to report within 60 days of enactment of this Act on the extent of assistance provided to victims of

mob violence and torture in Zimbabwe, especially African workers

on illegally occupied commercial farms.

33

UNITED STATES UNIVERSITY SUPPORT FOR DEVELOPING COUNTRIES

The Committee has received a number of requests to fund specific programs, projects, and activities at or through American institutions of higher education. The Committee strongly supports

the funding of activities that support our international development assistance and foreign policy goals. The Committee has reviewed many concepts proposed for funding. The Committee strongly recommends that the Agency for International Development and/

or the Department of State (as appropriate for the proposed

project) consider favorably proposals submitted by the following organizations. In doing so, the Committee expects that competitive

procedures will be followed with regard to each, to the maximum

extent possible. Unless a proposal demonstrates a unique, innovative, or proprietary capability, or demonstrates special considerations that justify limited or non-competitive treatment, the Committee expects that competitive procedures will be applied with regard to the proposals on the list that follows. The Committee also

expects AID to give priority to proposals that are well conceived,

including those with realistic budgets and achievable objectives.

Within 60 days after the submission of the initial report required

by section 653(a) of the Foreign Assistance Act, the Agency for

International Development shall submit a report to the Committee

on the status of each activity identified below. Such report shall include: (1) the status of a funding proposal by the organization associated with each activity; (2) the degree to which the proposal is

consistent with United States development assistance and foreign

policy goals for the country or region in which the activity would

take place; (3) the degree to which matching or other funds would

be provided by the organization to complement the Federal contribution; (4) to the extent known at the time, any decision by AID

or the Department of State on funding the activity, including the

proposed funding level; and (5) any other relevant information

deemed important by AID or the Department of State. The Committee also expects to receive a second report on the status of these

proposals no later than May 1, 2002. In addition, the Committee

requests that AID identify an office or organization within the

agency, or within the Department of State if appropriate, to which

inquiries can be directed on the status of these proposals.

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

a proposal by Wayne State University on behalf of its International Partnerships in Public Health;

a proposal by Mississippi State University on behalf of its

International Agribusiness Development Program;

a proposal by Loma Linda University for its healthcare programs in developing countries;

proposals by Marquette University’s project to train a sustainable nursing workforce for HIV/AIDS Care and Counseling

in Kenya, and by its Les Aspin Center for Government for continuing training in democracy, leadership, and HIV/AIDS education in Kenya, Ghana, and Nigeria (this matter was addressed in the fiscal year 2001 Committee report, and the

Committee is very concerned that the Agency for International

34

Development has not responded in a positive manner to this

issue in the past year);

a proposal by a consortium of schools of tropical public

health at Tulane University, the University of Notre Dame,

and Johns Hopkins University to expand programs to reduce

the global reemergence of malaria;

proposals by George Mason University on behalf of its School

of Nursing for enhancing ongoing activities in Nicaragua and

on behalf of its School of Law to establish a Center for the

Study of Terrorism and Human Slavery;

a proposal by a consortium of Washington State University,

Oregon State University, and South Dakota State University

with the International Maize and Wheat Improvement Center

to enhance a Food Security initiative in Central Asia and the

Caucasus region;

a proposal by the University of Arizona to establish a USMexico Border Research Institute and to participate in AID’s

environment programs and the Department of State narcotics

control programs conducted jointly with Mexico;

a proposal by Florida A&M University to fund a distance

learning education program in Ghana;

a proposal by Johns Hopkins University-School of Advanced

International Studies to expand its research on and documentation of the scope of international trafficking in women

and children by its Protection Project;

a proposal by Florida International University to establish

an Andean Alternative Development Research project;

a proposal by St. Thomas University of Miami on behalf of

its Foundation for Democracy in Africa to promote HIV/AIDS

prevention activities in Africa;

a proposal by the University of Miami-Institute for Cuban

and Cuban-American Studies to participate in the Cuban Transition Project;

a proposal by Arizona State University on behalf of its US/

Andean Partnership for Science Education;

a proposal by LaRoche College-Pacem in Terris Institute to

expand its international private/public scholarship programs;

a proposal by New York University-Robert F. Wagner School

for Public Service to establish distance learning and communications technology programs at an International Center for

Democratic Public Service;

a proposal by the University of New Orleans in partnership

with the Louisiana Technology Council to develop a technology

training program in Latin America and the Caribbean;

proposals by Louisiana State University to develop

mariculture in Namibia and by its School of Law-Commercial

Law Program of the Americas to support intra-hemispheric

trade;

a proposal by City University of Bellevue, Washington, for a

new center that will facilitate its existing distance learning

program and expand distance learning throughout eastern Europe;

a proposal by San Diego State University to develop a Middle East and Mediterranean Desert Development Program to

focus on expanding regional cooperation in combating growing

35

desertification in the Middle East and southern Mediterranean

region (this matter was addressed in the fiscal year 2001 Committee report, and the Committee is very concerned that the

Agency for International Development has not responded in a

positive manner to this issue in the past year);

a proposal by Florida State University to fund a distance

learning program of instruction in basic legal principles for

students and professionals in central Europe;

a proposal by the National Center for Computational

Hydroscience and Engineering (NCCHE) at the University of

Mississippi for the purpose of transferring state of the art technology to the Polish Academy of Sciences, through programs to

enhance waterways navigation safety, flood prediction and prevention, water resources engineering, environmental and ecological impact assessment, and soil conservation;

a proposal by the State University of New York for its participation in a collaborative undertaking in the field of advanced materials involving also the New York Centers of Technology, Moscow State University, and various private businesses;

a proposal by the University of Northern Iowa to expand the

Orava Project in eastern Europe; this project has successfully

worked with educators in Slovakia to incorporate democratic

concepts and practices into schools and teacher education programs; and

a proposal by Joslin Diabetes Center to partner with

Mansoura University in Egypt to address the growing public

health problem with diabetes in Egypt.

INTERNATIONAL DISASTER ASSISTANCE

Fiscal year 2001 level ......................................................................... $165,000,000

Emergency supplemental funding ............................................. 135,000,000

Fiscal year 2002 request .................................................................... 200,000,000

Committee recommendation .............................................................. 200,000,000

The Committee recommends $200,000,000 for the International

Disaster Assistance account, the same amount as the request. The

Committee recognizes that improved disaster prevention, mitigation, and preparedness techniques are central to reducing the need

for disaster assistance in future years. The Committee recommends

that at least $1,000,000 each be allocated for India and for El Salvador for disaster preparedness activities.

EL SALVADOR RECONSTRUCTION

The Committee has approved a 22 percent increase above the

current level in order to accommodate an increase above the request for post-earthquake reconstruction projects in El Salvador,

primarily through municipal governments and private voluntary

agencies. The additional amount provided for El Salvador through

this account is in addition to funds requested for El Salvador under

this and other headings in the bill. The Committee notes that section 492(b) of the Foreign Assistance Act provides the President

with the authority to obligate up to $50,000,000 from other development assistance accounts including the Economic Support Fund

in order to provide disaster assistance, if necessary.

36

AFGHANISTAN

The Committee is alarmed by credible reports about the severity

and extent of the emerging humanitarian crisis in and around Afghanistan. The deepest and most extensive drought in 30 years has

devastated a population already in stress after 22 years of an especially destructive war and misgovernment. A directive from the

leader of Afghanistan’s Taliban to cease opium poppy production

has been obeyed, having the effect of reducing the income available

to purchase what food is available for sale in local markets. Paradoxically no compensation or alternative development has been offered by the international community, as has been done in Bolivia

and many other former drug-producing nations.

To avoid possible starvation, Afghans are leaving their home villages, forming huge concentrations of refugee and internally displaced person (IDPs). A large percentage of IDPs and urban populations in the country now depend for survival on food donations

from abroad, primarily from the United States, directly, or through

American donations to the World Food Program.

Of special concern to the Committee is the situation in Pakistan

where as many as 200,000 new refugees have arrived since September, joining the 2 million Afghans who have been accepted by

Pakistan since 1979. Most of the new refugees are living in appalling conditions, with poor sanitation and little water or suitable

shelter. The Committee urges the State Department to place the

refugee crisis in Pakistan at a higher level of priority, to urge other

industrial nations to increase assistance, and make available additional funds from the international disaster and migration and refugee accounts, allowing international and private relief agencies to

better cope with the crisis.

The Committee urges the AID Office of Foreign Disaster Assistance to continue to negotiate an interim agreement with the County of Los Angeles Fire Department urban search and rescue team

for overseas deployments. Once concluded, the interim agreement

should remain in effect until such time as OFDA holds an open

competition to meet its requirements for technical expertise in

urban search and rescue. The results of the competition should reflect an appropriate geographic balance, with teams selected from

the Pacific and Gulf-Atlantic coasts of the United States, as first

directed in House Report 106–254 in July, 1999.

The Committee has for several years included reconstruction

among the activities that could be funded through the disaster assistance account. The Committee requests two one-time reports

from the Administrator of AID: within 30 days of enactment of the

bill, a report on the planned allocation of International Disaster Assistance Funds, including an appropriate amount for reconstruction

activities proposed to be undertaken for victims of natural disasters; and within 60 days of enactment, a report on the Agency’s recommendations for future budgeting for developmental relief to alleviate ongoing complex humanitarian disasters, such as in Sudan,

from the disaster assistance and other AID-managed accounts.

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TRANSITION INITIATIVES

Fiscal year 2001 level ......................................................................... $50,000,000

Fiscal year 2002 request .................................................................... 50,000,000

Committee recommendation .............................................................. 40,000,000

The Committee recommends $40,000,000 for this account, compared to the budget request of $50,000,000. The Committee does

not preclude AID’s Office of Transition Activities from using resources transferred from other development accounts in this Act.

Also, the Committee requests that AID report on a semi-annual

basis the expenditure and specific use of funds by OTI.

In its fiscal year 2000 report, the Committee noted that AID’s Office of Transition Initiatives (OTI) activities were consuming an

ever-increasing part of the International Disaster Assistance account. A separate account was established for core OTI activities.

As the AID Administrator moves to increase the Agency’s focus

on conflict prevention and development relief, the Committees expect to be fully consulted in advance on the role of OTI, the Office

of Foreign Disaster Assistance, the Office of Private and Voluntary

Cooperation, and the Office of Food for Peace.

DEVELOPMENT CREDIT AUTHORITY

(INCLUDING TRANSFER OF FUNDS)

PROGRAM ACCOUNT

Fiscal year 2001 level ......................................................................... $1,500,000

(by transfer) ................................................................................. (5,000,000)

Fiscal year 2002 request .................................................................... ............................

(by transfer) ................................................................................. (25,000,000)

Committee recommendation .............................................................. ............................

(by transfer) ................................................................................. (12,500,000)

ADMINISTRATIVE EXPENSES

Fiscal year 2001 level ......................................................................... $4,000,000

Fiscal year 2002 request .................................................................... 7,500,000

Committee recommendation .............................................................. 7,500,000

For fiscal year 2002, the budget request proposes merging AID’s

two existing credit programs into one consolidated Development

Credit account. This single program would include a consolidated

credit administrative budget. The Committee supports consolidation of the Micro and Small Enterprise Development (MSED) account as well as administrative expenses associated with management of the existing Development Credit Authority and recommends $7,500,000 for administrative expenses, the same as the

requested level.

PAYMENT TO THE FOREIGN SERVICE RETIREMENT AND DISABILITY

FUND

Fiscal year 2001 level ......................................................................... $44,489,000

Fiscal year 2002 request .................................................................... 44,880,000

Committee recommendation .............................................................. 44,880,000

The Committee has provided the budget request for the mandatory payment to the Foreign Service Retirement and Disability

Fund.

38

OPERATING EXPENSES OF THE AGENCY FOR INTERNATIONAL

DEVELOPMENT

Fiscal year 2001 level ......................................................................... $520,000,000

Emergency funding ..................................................................... 13,000,000

Fiscal year 2002 request .................................................................... 549,000,000

Committee recommendation .............................................................. 549,000,000

The Committee has recommended funding for Agency for International Development operating expenses at a level of $549,000,000

which is the same as the Administration’s request. The Committee

has once again included a provision requiring AID to notify the

Committee in advance of opening any new mission overseas and of

any capital construction of missions or purchase or long-term lease

of offices.

USE OF PERSONAL SERVICE CONTRACTORS

The Committee notes the continued use by AID of personal service contractors (PSCs). The Committee has traditionally supported

this method of employing qualified individuals for short and medium term program implementation. However, the Committee

notes the trend toward employing PSCs over a period of many

years at the Agency, who carry out functions similar to career personnel of the Civil Service and the Foreign Service, but who lack

comparable health, retirement, and other benefits. The Committee

requests AID report in narrative form not later than March 1,

2002, on the total number of PSCs employed by the Agency, the average length of employment, the typical benefits provided to PSCs

(compared to those provided to career Civil and Foreign Service

employees), and the justification for the disparity in benefits.

FAIRNESS IN CONTRACTING

The Committee recognizes senior management now shares its

concerns about AID’s existing procedures regarding minimum

awards under multiple award contracts. Current management

practices on certain existing multiple award contracts do not yet

allow small businesses to fairly compete for work.

To reform this process AID management must address two key

issues. First, organizations bidding for these contracts must be assured of receiving awards during the life of the contract valued at

substantially more than the cost of preparing and submitting the

original bid. While larger organizations and traditional AID contractors may be better able to absorb the upfront costs associated

with the bidding process, small businesses—especially first-time

bidders—find it difficult.

Second, after being selected to participate in a multiple award

contract, all businesses must be given the opportunity to compete

for individual task orders. While discretion must be allowed for

AID Cognizant Technical Officers (CTOs) to make award decisions,

AID management has overall responsibility to ensure that each organization participating in a multiple award contract has received

sufficient task orders so that it can be evaluated on its performance

and considered for future work.

Not later than October 5, 2002, AID is directed to report in writing to the Committee on its efforts to modify its existing procedures

regarding multiple award contracts.

39

VOLUNTARY SEPARATION INCENTIVES

The Committee has included bill language providing for the payment of voluntary separation incentives to AID employees for the

purpose of eliminating positions and functions at AID. This provision further amends the fiscal year 2000 authority. The Agency is

directed to consult with the Committee prior to announcing to AID

employees the positions eligible for the separation incentives. The

Committee expects this authority to be utilized to reduce employment levels in Washington, D.C., not at AID’s overseas missions.

COMMITTEE OVERSIGHT CHALLENGES

The Committee remains concerned about continued and significant weaknesses in AID’s ability to provide reliable information to

Congress regarding the exact use of funds under Agency control.

Many of these deficiencies are not new as the Committee has highlighted these in past years. While progress has been made in certain areas, widespread deficiencies continue to exist in the majority

of AID’s financial accounting and management systems.

The Committee will continue to work with senior AID officials to

improve management and financial systems to ensure they meet

the needs of both Congress and the Agency. The Committee expects

AID management to implement the recommendations of the Inspector General in this regard and to be regularly consulted about

Agency efforts to meet these requirements.

The Committee directs AID to continue to report on a quarterly

basis on the status of its computer systems, including the cumulative costs associated with design and implementation of its computer systems. Any costs for computer systems above those originally justified for fiscal year 2002 shall be subject to prior review

by the Committees on Appropriations. In addition, the Committee

directs that the Agency’s fiscal year 2003 budget justification will

clearly identify the amounts requested for AID computer operations.

AID BUDGET SUBMISSION

The Committee notes that the AID budget justification still falls

short in providing the Congress with the minimum information it

requires to carry out its legislative and oversight responsibilities,

and has caused an undue reporting burden on the Agency. It is essential that the Committee have at its disposal a concise budget

justification document that presents an overall presentation of the

Agency’s programs and activities.

Beyond the unacceptable practice of aggregating most programs,

projects, and activities under Agency objectives, the budget justification continues to largely exclude overview budget narratives

and tables on areas such as infectious diseases, microcredit, biodiversity, population, economic growth, energy, democracy, or agriculture. The Committee strongly recommends that the AID budget

justification be coordinated with a new financial management system to produce annual budget justifications that fully inform the

Committee with regard to projects, initiatives, and other traditional

areas of congressional and executive branch interest.

40

AID PHYSICAL SECURITY

The Committee remains committed to assisting AID in improving

its physical security needs overseas and in Washington. The Committee directs the Administrator of AID to submit a written report

detailing the agency’s long-term local and overseas physical security requirements and the costs associated with these security

needs, including the number of engineers and other technically

qualified AID employees assigned to the security mission. The report also shall include information regarding the Agency’s activities

during the current fiscal year to work with other federal agencies,

including the Department of State and the Office of Management

and Budget, to address physical security issues.

OPERATING EXPENSES OF THE AGENCY FOR INTERNATIONAL

DEVELOPMENT, OFFICE OF THE INSPECTOR GENERAL

Fiscal year 2001 level ......................................................................... $27,000,000

Fiscal year 2002 request .................................................................... 32,000,000

Committee recommendation .............................................................. 30,000,000

The Committee has recommended $30,000,000 for the Office of

the Inspector General of AID for fiscal year 2002, $2,000,000 below

the budget request and $3,000,000 above the fiscal year 2001 level.

The Committee commends the Inspector General for seeking to

consult with the Committee no less than four times per year on its

activities with regard to the Government Performance and Results

Act.

OTHER BILATERAL ECONOMIC ASSISTANCE

ECONOMIC SUPPORT FUND

Fiscal year 2001 level ......................................................................... $2,295,000,000

Fiscal year 2002 request .................................................................... 2,249,000,000

Committee recommendation .............................................................. 2,199,000,000

The Committee recommends a total of $2,199,000,000 for the

Economic Support Fund, an amount that is $50,000,000 below the

request and $96,000,000 below the amount enacted for fiscal year

2001.

The Committee recommendation assumes a reduction of

$160,000,000 in economic support for the Camp David countries. In

addition, it reflects a reduction of $25,000,000 associated with the

decision to retain a separate appropriations account for the International Fund for Ireland. The Administration’s budget request included $19,600,000 for Ireland within the Economic Support Fund.

As requested by the President, the Committee is recommending

the continuation of language similar to that contained in the fiscal

year 2001 appropriations act that authorizes assistance to the National Democratic Alliance of Sudan for certain specified activities.

ISRAEL

The Committee is continuing the initiative begun three years ago

for a phased reduction in economic assistance for Israel that will

result in the eventual elimination of ‘‘Economic Support Fund’’ assistance. This proposal was originally made by the Government of

Israel in response to new economic realities in the Middle East.

41

The Committee is also convinced that the emerging security

threats in the Middle East are significant and warrant increasing

military assistance to Israel by $60,000,000 in fiscal year 2002.

However, with respect to this recommended increase in military assistance, the Committee must be very clear that it cannot commit

future Congresses to an additional appropriation of funds. Therefore, future increases in military assistance will require the annual

review of the Congress and will necessarily be based upon an assessment of the security situation at the time. The Committee therefore recommends not less than $720,000,000

in economic support shall be provided for Israel, which is

$120,000,000 less than the fiscal year 2001 level and the same as

the President’s budget request. The Committee also requires in bill

language that these funds be provided to Israel as a cash grant and

that funds be disbursed within 30 days of enactment or by October

31, 2001, whichever is later.

The Committee has retained an overall limit on Middle East

spending (section 558) at a level of $5,141,150,000. The reduction

of $100,000,000 from the fiscal year 2001 ceiling represents the net

result of a decrease of $160,000,000 in economic support for the

Camp David countries and an increase of $60,000,000 in military

assistance for Israel. The Committee believes this will provide the

Administration with increased flexibility in the allocation of funds

in the foreign operations budget for priority activities in other

areas of the world.

EGYPT

As part of the Committee’s ongoing review of Middle East aid

levels, and as a result of budget constraints affecting the international affairs budget, the Committee has engaged in extensive

discussions with the Government of Egypt and the Administration

regarding appropriate future aid levels for Egypt. As a key friend

and ally in the region, Egypt’s role in the Middle East is critical.

It is the Committee’s view therefore that changes in aid to Egypt

must be implemented in close consultation with the Government of

Egypt and in a manner which does not inadvertently undermine

the guiding principles of the Camp David Accords.

The Committee therefore includes not less than $655,000,000 in

economic support be provided for Egypt on a grant basis, which is

$40,000,000 less than the fiscal year 2001 level and the same as

the President’s budget request. A cash transfer may be provided

with the understanding that Egypt will continue to implement significant economic reforms.

The Committee believes that encouraging stability and prosperity

in Egypt is in the best national security interests of the United

States. U.S. assistance to Egypt should serve the goal of regional

stability, economic development and liberalization, and democratic

reform. The Committee is therefore deeply concerned about the recent prosecution and conviction of twenty-eight people affiliated

with the Ibn Khaldoun Center for Development Studies in Egypt,

including the Center’s director, Saad Eddin Ibrahim, who holds

dual U.S./Egyptian citizenship. The Committee is also troubled by

the fact that the case involving the Ibn Khaldoun Center was tried

by a special security court, despite the fact that the Center was

registered as a civil company. The Committee directs the State DeVerDate 11-MAY-2000 01:23 Jul 18, 2001 Jkt 073687 PO 00000 Frm 00041 Fmt 6659 Sfmt 6602 E:\HR\OC\HR142.XXX pfrm02 PsN: HR142
42

partment to report to the relevant Committees, no later than 120

days after the enactment of this Act, regarding the U.S. efforts to

monitor developments in the case.

The Committee also notes with concern that the Government of

Egypt has declined to reinstate its ambassador to Israel. As in previous years, the Committee has included bill language encouraging

the establishment of diplomatic relations between Israel and other

countries in the region, and views the withdrawal of Egypt’s ambassador as an unfortunate setback for efforts to establish lasting

peace and stability in the region. The Committee urges the Secretary of State to make reinstatement of the ambassador to Israel

a high priority in contacts with his Egyptian counterpart.

CAMP DAVID ACCORDS

The Committee emphasizes once again that the recommended

levels of assistance for Israel and Egypt are based in great measure

upon their continued participation in the Camp David Accords and

the Egyptian-Israeli peace process.

NON-MILITARY EXPORTS

The Committee strongly urges the President to ensure, in providing cash transfer assistance to Egypt and Israel, that the level

of such assistance does not cause an adverse impact on the total

level of non-military exports from the United States to each such

country.

ECONOMIC BOYCOTT OF ISRAEL

The Committee has once again included language in the bill addressing the Arab League boycott of Israel under section 535 of this

Act. This language includes modifications made last year to urge

that Arab League members normalize relations with Israel.

JORDAN

The Committee expresses its continued strong support for and

appreciation of Jordan’s constructive and critical role in the region

and encourages the Administration, in close consultation and cooperation with the Congress, to continue its efforts to assist Jordan

in both the economic and security areas. The Committee therefore

recommends $150,000,000 in economic assistance for Jordan, the

same as the President’s budget request.

The Committee also encourages Jordan to continue its ongoing

economic reform program, which the Committee strongly supports.

MIDDLE EAST DESERTIFICATION

The Committee recommends that the Agency for International

Development and the Department of State, through regional and

bilateral programs, increase its emphasis on the issues of

desertification and water shortages in the Middle East and Mediterranean region. The Committee urges the Department to consider

an increase in the funding allocated to the Middle East Regional

Cooperation (MERC) program specifically to address these issues.

The success of peace negotiations in the Middle East will depend

upon the ability of all parties to agree on an equitable allocation

of the region’s scarce water resources. Much of these resources are

43

in the form of groundwater aquifers that are shared by at least two

countries. In that regard, the Committee is aware of the proposal

of the Blaustein Institute for Desert Research in Israel to investigate the flow and transport of pollutants in groundwater in the

region, and recommends that the Department of State and AID actively consider up to $1,000,000 for this organization.

The Committee also recognizes the efforts of the Galilee Society

in creating the Appropriate Technology Consortium with support

from the MERC program, and notes with interest the Society’s recent proposal to launch a cooperative project to find safe and suitable uses for organic waste emanating from olive oil presses.

The Committee also strongly supports the efforts of the International Arid Lands Consortium and its partner, the Center for

Middle East Peace, in addressing the critical issues of water and

energy in the Middle East and directs AID to provide up to

$2,500,000 to the International Arid Lands Consortium for this

work. These funds should be allocated from bilateral, centrally

managed, or regional programs either in this account or in other

accounts funded in this act.

CONFLICT RESOLUTION

The Committee recognizes the importance of youth training in

conflict resolution as a tool for creating a climate of peace in regions of conflict. Organizations such as Interns for Peace can play

an important role in this regard, and the Committee urges support

for its programs. The Committee also commends Seeds of Peace for

its commitment to helping future leaders of the Middle East and

other regions (such as Cyprus, the Balkans, and South Asia) to

overcome prejudice, fear, and other obstacles to peace, and urges

AID and the Department of State to provide $1,000,000 in fiscal

year 2002 to support the important work of this organization.

The Committee recognizes that through the Economic Support

Fund the United States has funds available that focus on environmental security alerts, threat assessments, and preventive solutions. In that regard, the Administration has an excellent opportunity to access the information and expertise of the Foundation for

Security and Sustainability and its academic and industry partners. The Foundation’s data and assessments, and collaboration

with interdisciplinary experts and the academic community, reduce

the burden on federal agencies and provide invaluable insight to

United States policy makers in evaluating the security implications

of emerging environmental issues and developing strategies for engaging on these issues in time to make a difference. The Committee supports the efforts of the Foundation for Security and Sustainability and strongly encourages the Agency for International

Development and the Department of State to provide funds to support its mission.

In addition, the International Crisis Group (ICG) provides highquality analysis and policy recommendations to prevent or reduce

the level of deadly violence resulting from complex crises. ICG’s analysts worldwide have been well positioned to identify potential

problems, produce objective assessments, and support policy responses. The Committee urges the Department of State and the

Agency for International Development to provide funding for the

ICG to continue its research in areas of U.S. foreign policy interest,

44

such as Colombia, Sierra Leone, the Democratic Republic of Congo,

Indonesia, and the Balkans.

The Committee recognizes that ethnic and sectarian tensions underlie many of the world’s most intractable conflicts. NGOs in conflict regions can play an important role in resolving tensions and

building peaceful societies. The Committee recognizes the important work of the School for International Training’s Conflict Transformation Across Cultures Program (CONTACT), an international

professional development program for NGO personnel. The CONTACT program has trained NGO professionals from the former

Yugoslavia, Sri Lanka, Nepal, Indonesia, Peru, Rwanda, Sierra

Leone, the Middle East, and other regions in the core skills and

practical tools for responding to conflict in their communities, and

has developed a global network of dedicated professionals in the

field of conflict resolution. The Committee recommends that USAID

make available up to $1,000,000 for the CONTACT program.

LEBANON FUNDING

The Committee believes support for the people of Lebanon continues to be in the United States national interest. The Committee

supports at least $35,000,000 for Lebanon for fiscal year 2002. In

that regard, the Committee has retained bill language similar to

that contained in the fiscal year 2001 appropriations act that directs that not less than $35,000,000 should be made available for

Lebanon. Working through such organizations as the Young Men’s

Christian Association (YMCA), the Catholic Near East Welfare Association, the Cooperative Housing Foundation, Mercy Corps, Save

the Children Federation, State University of New York, and the

World Rehabilitation Fund, the Agency for International Development is providing the basis for a democratic social and economic infrastructure that does not rely on other organizations operating in

that country. In particular, the Committee commends the Rural

Community Development Cluster (RCDC) program, which is helping to revitalize and expand economic opportunities in some of the

most destitute and poverty-stricken areas of Lebanon.

The Committee is also aware of the key role the Lebanese American University, American University of Beirut, and International

College play training leaders in the region and expect that not less

than the fiscal year 2001 allocation will be provided for these important institutions.

The Committee welcomes the withdrawal of Syrian troops from

the region surrounding Beirut, but recognizes that Lebanon can

never achieve full independence until all foreign security and military forces are withdrawn, and control is reasserted by the national

government throughout all of Lebanon. The Committee calls upon

Lebanon and Syria to adopt a timetable for the complete withdrawal of all Syrian forces from Lebanon.

The Committee also urges the government of Lebanon to assist

international humanitarian organizations in determining the

whereabouts and condition of three Israeli soldiers that were seized

near the southern border last year. The Committee encourages the

Secretary of State to make this issue a high priority of U.S. diplomatic activity in the region.

45

IRELAND

The Committee strongly supports continued funding to implement the Irish Peace Process Cultural and Training Program Act

of 1998 and has provided the budget request of $5,000,000 for this

purpose. This Congressional initiative brings individuals from

Northern Ireland and designated disadvantaged areas to the

United States for job training and related activities.

INDONESIA

The Committee notes the difficult path encountered by new

democratic institutions at the central and local levels throughout

Indonesia. The Agency for International Development is encouraged to provide adequate humanitarian assistance to internally displaced persons, especially in East Indonesia. The Committee expects the Departments of State and the Treasury and AID to consult with it in advance of any significant change in any United

States or international financial institution program of development, financial, or humanitarian assistance in Indonesia. It also directs the Export-Import Bank and the Overseas Private Investment

Corporation to promptly notify the Committee in the event that

any claim is anticipated or made on behalf of a loan or guarantee

involving Indonesia.

EAST TIMOR

The Committee recommends that $25,000,000 from the Economic

Support Fund be made available as requested to support income

producing projects and other reconstruction activities in East

Timor.

MONGOLIA

The Committee notes the difficult path encountered by new

democratic institutions in Mongolia. The Committee has provided

the full request of $12,000,000 for governance and other development assistance requested by the Department of State. In addition,

the Agency for International Development is encouraged to provide

adequate humanitarian and rehabilitation assistance to Mongolia,

especially rural areas severely affected by a recent series of natural

disasters.

CHINA

The Committee continues to support democracy programs in

China, and supports the President’s request for rule of law activities. In that regard, the Committee supports the provision of

$1,000,000 for democracy activities for China through grants administered by the National Endowment for Democracy (NED). Such

funding should be provided in addition to the $1,000,000 specified

for such activities in the fiscal years 2000 and 2001 appropriations

acts for the Economic Support Fund. The subgrants that would be

awarded under this grant would be similar in nature to the existing portfolio of NED-supported programs based outside China. The

subgrants could include human rights documentation and advocacy

in the international arena; dissemination of Chinese-language

human rights and democracy education materials among audiences

inside and outside China; independent media support; independent

46

research on China’s struggle for democracy; publication of periodicals which provide an open forum for discussion and commentary

on social, cultural, economic and political issues; and resource centers to provide access to important information necessary for both

Chinese and international observers and policymakers to understand the situation in China.

TIBET

The Committee recommends that $250,000 be made available

through a nongovernmental organization, such as the National Endowment for Democracy, for the purpose of providing training and

education of Tibetans in democracy activities, and monitoring the

human rights situation in Tibet. In addition, language has been included in section 526 to allow for a continuation in funding for activities which preserve cultural traditions and promote sustainable

development and environmental conservation in Tibetan communities. The Committee is aware of the valuable assistance the

Bridge Fund has provided to promote Tibetan-owned and operated

businesses and educational, cultural, and natural resource conservation projects in Tibet, and urges that funds be provided for

these activities.

SRI LANKA

The Committee encourages the Agency for International Development to maintain an office and presence in Sri Lanka. In addition,

it is encouraged to provide additional resources for programs promoting rule of law, anti-corruption activities, and good governance.

Recent progress toward peace talks and a settlement of the long

civil war in Sri Lanka is encouraging, and the United States should

continue to lend its support toward such efforts.

CYPRUS

The Committee strongly supports the budget request of

$15,000,000 for educational and other bicommunal projects in Cyprus, and has included language similar to that included in the fiscal year 2001 act that provides that not less than $15,000,000

should be made available for these purposes. These funds provide

a basis for mutual cooperation and preparation for the two communities of Cyprus to live together harmoniously by increasing intercommunal contacts.

LATIN AMERICA AND THE CARIBBEAN

The Committee strongly supports the increases in the President’s

request for Latin America. It remains the Committee’s strong belief

that given the importance of the region and the long history of

United States support, it is essential that aid levels be increased.

In that regard, the Committee fully supports the budget request of

at least $5,000,000 for the Cuba democracy program and its goal

of promoting a peaceful transition to democracy in that country.

When allocating these funds the Committee expects AID to consider proposals at or through institutions of higher education in the

United States and expects that competitive procedures will be followed with regard to such proposals.

47

The Committee continues to be concerned about the resolution of

the cases involving the terrorist bombings of the Israeli Embassy

and the AMIA Jewish Community Center in Buenos Aires, Argentina. The Committee urges the Secretary of State to continue to

work with the Government of Argentina to ensure that progress is

made in these cases, and to offer technical law enforcement assistance where appropriate to bring to justice the perpetrators of these

terrorist acts.

The Committee is concerned about potential loss of human life

and economic infrastructure as a result of future earthquakes in

Latin America. In significant respects, such damage may be avoided if proper planning and construction occurs. There is a need in

El Salvador, Ecuador, and other Latin American countries for updated construction codes. If proper codes are followed, buildings

will be safer, and therefore, the need for United States disaster assistance in the wake of disasters will be less. The Committee urges

the Office of Foreign Disaster Assistance at the Agency for International Development to recognize and evaluate opportunities to

translate U.S. building codes from English to Spanish and for

training in Ecuador and El Salvador.

DOLLARIZATION IN CENTRAL AND SOUTH AMERICA

The Committee is concerned that the growth in ‘‘dollarization’’

throughout the world, especially in Central and South America,

will result in an increase in the overseas based production and distribution of counterfeit U.S. currency. Dollarization in countries

that lack law enforcement expertise or meaningful criminal penalties will provide counterfeiters a fertile environment to use that

economy as a place to launder counterfeit U.S. dollars.

In order to prevent the proliferation of counterfeiting as a result

of increased dollarization, the Committee directs the Secretary of

State, with the Secretary of Treasury, to jointly develop a strategy

to mitigate counterfeiting of U.S. dollars in dollarized regions and

report its findings to the Committees on Appropriations no later

than September 30, 2002.

HUMAN RIGHTS AND DEMOCRACY FUND

As in fiscal year 2001, the Committee expects that, of the funds

allocated to the Human Rights and Democracy Fund, $1,000,000

should be provided to support the Reagan/Fascell Democracy Fellows Program of the National Endowment for Democracy to enable

activists, scholars, journalists, and practitioners from around the

world to help make contributions to the strengthening of democracy

in their respective countries. This program was authorized in section 104(a)(2)(B) of H.R. 3427 as enacted into law as part of Public

Law 106–113.

The Committee continues to support assistance to South Korean

nongovernmental organizations involved in activities to promote

democratization efforts in North Korea, and is disappointed that

funds provided in fiscal year 2001 have not been obligated. The

Committee strongly urges that an additional $250,000 be made

available from funds appropriated in fiscal year 2002. Such funds

should be programmed through the National Endowment for Democracy.

48

TUNA TREATY

The Treaty on Fisheries between the United States and the governments of certain Pacific Island states, popularly known as the

South Pacific Regional Fisheries Treaty, requires that $14,000,000

in economic assistance be provided annually to the South Pacific

states. Therefore, the Committee recommends that the treaty obligation be met through the payment of the full $14,000,000 in fiscal

year 2002, as requested by the President.

AVAILABILITY OF FUNDS

The Committee has continued language that funds in this account are to remain available for obligation for two years.

INTERNATIONAL FUND FOR IRELAND

Fiscal year 2001 level ......................................................................... $25,000,000

Fiscal year 2002 request .................................................................... (19,600,000)

Committee recommendation .............................................................. 25,000,000

The Committee recommends $25,000,000 for the International

Fund for Ireland in support of the Anglo-Irish Accord. Funding for

this activity is requested through the Economic Support Fund, but

the Committee recommendation would continue a separate account

for assistance to Ireland. The amount represents an increase of

$5,400,000 over the President’s budget request.

The International Fund for Ireland plays an important role in

promoting peace and stability in Northern Ireland. The Committee

is aware of a proposal by the University of Ulster Springvale campus to work with the University of Notre Dame to assess the impact of the new campus on the West Belfast community. The Committee believes the Fund is the appropriate and authorized vehicle

for providing assistance to Ireland, and therefore requests the

Fund to favorably review this request, and to provide funding as

appropriate.

The Committee strongly urges the International Fund for Ireland

to take every step possible to ensure that all recipients of Fund

support are promoting equality of opportunity and non-discrimination in employment. The Committee further urges the Fund to

focus on those projects that hold the greatest potential for job creation and equal opportunity for the Irish people, regardless of class,

creed, gender, or ethnicity.

ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC STATES

Fiscal year 2001 level ......................................................................... $600,000,000

Emergency funding ............................................................................ 75,825,000

Fiscal year 2002 request .................................................................... 605,000,000

Committee recommendation .............................................................. 600,000,000

The Committee recommends $600,000,000 for Assistance for

Eastern Europe and the Baltic States, an amount that is the same

as the amount provided for fiscal year 2001 (excluding emergency

funds) but $5,000,000 below the budget request. If emergency supplemental funds are included, the recommendation is $75,825,000

below the level enacted for fiscal year 2001.

The Committee intends that funding for democracy programs

though the National Endowment for Democracy continue at least

49

at the fiscal year 2001 level, and be provided as a transfer of funds

pursuant to section 632(a) of the Foreign Assistance Act.

BURDEN SHARING FOR KOSOVO

The Committee remains concerned about the level and pace of

European contributions to the reconstruction and rebuilding of

Kosovo. However, the Committee is aware it is unlikely a formal

donor’s conference will be held for Kovoso for fiscal year 2002. In

addition, the funding allocation for assistance for Kosovo would decline from $150,000,000 in fiscal year 2001 to $120,000,000 in fiscal

year 2002. Therefore language requiring that the United States not

provide more than 15 percent of the resources pledged for Kosovo

has been modified to set this limitation as a goal rather than a

funding ceiling. In addition, bill language is continued from the fiscal year 2001 appropriations act that would prohibit funding for

large scale physical infrastructure reconstruction.

BOSNIA AND HERZEGOVINA

The Committee has recommended the same bill language as in

the fiscal year 2001 Act that requires the written approval of the

Administrator of AID for loans and projects under the Economic

Reconstruction Program; authorizes the use of local currency funds

generated by the Bosnia assistance program for programs throughout the region; and authorizes the President to withhold funds for

economic revitalization for Bosnia if he determines that Bosnia is

not in compliance with the Dayton Accord regarding the presence

of foreign forces and has not terminated intelligence cooperation

with Iranian officials. All funds are subject to the provisions of section 529 of this Act.

BRCKO DISTRICT OF BOSNIA AND HERZEGOVINA

The Committee believes that the terms and conditions specified

in the Final Award of the Arbitral Tribunal overseeing the Brcko

boundary dispute constitutes a package of innovative reforms that

hold significant promise for rebuilding vital civil institutions. In

particular, the Committee believes that the work of the Law Revision Commission to modify existing laws to produce a uniform and

fair system of laws throughout the Brcko District should be seen

as a model for making similar reforms in the broader region. The

Committee believes the Secretary should use his offices to highlight

the institution-building mechanisms developed by the Brcko Tribunal and urge that this be used as a model for making needed

legal, judicial and penal, law enforcement, customs service, taxation, and financial management reforms in the Federation of Bosnia and Herzegovina and the Republika Srpska.

MONTENEGRO

The Committee strongly supports assistance for the Republic of

Montenegro, and urges the Administration to make every effort to

assist the Government of the Republic. The Committee is disappointed that the Administration did not request a separate line

item for Montenegro. Therefore the Committee directs that

$60,000,000 be made available for Montenegro, and that this sum

be identified in the report required by section 653(a) of the Foreign

50

Assistance Act as a separate line item with a separate allocation.

The Committee notes the strong support given by the Republic to

the foreign policy of the United States during the latter years of

the Milosovic regime in Serbia.

THE BALTIC STATES

The Committee has not included bill language that recommends

that $5,000,000 shall be provided for assistance for the Baltic

States based on assurances from the Department of State that such

an allocation will be made for fiscal year 2002. The Committee

strongly supports continued assistance to the Baltic States at least

at the $5,000,000 level. Although these countries no longer have

AID missions, they are still emerging from decades of dominance

by the Soviet Union and continue to need United States technical

assistance in order to emerge into the community of Western nations.

The Committee intends that these resources be used in the Baltics for the same purposes as were the funds that were provided

in fiscal year 2001, including regional environment programs,

health programs, anticrime and anticorruption programs, and rule

of law programs.

The Committee requests that the Department of State and the

Agency for International Development consult with the Committees

on Appropriations by February 1, 2002, on plans to continue these

programs in the Baltics. The Committee does not believe the maintenance of such programs will require AID to open missions in any

of these countries. Such programs can and should be managed on

a regional basis.

TREATMENT OF ORPHANS

The Committee continues to be very concerned by the condition

of orphaned children in the Federation of Bosnia and Herzegovina.

While Bosnian families have been reluctant to adopt many of these

children, American families have shown an interest in adopting

Bosnian children. Unfortunately, legislative barriers within the

Federation have prevented foreign adoptions, and the Committee is

very disturbed that little action has been taken to modify these

provisions. The Committee strongly encourages the Government of

the Federation of Bosnia and Herzegovina to enact legislation that

will expedite the adoption of Bosnia children by foreign families,

and directs the Secretary of State to report not later than December 1, 2002, on the steps that have been taken both by Bosnia and

by the Department to encourage passage of such legislation.

LEGAL INITIATIVES AND THE RULE OF LAW

The Committee encourages the Agency for International Development to continue to provide financial support for the Central and

Eastern European Law Initiative (CEELI), a project of the American Bar Association. CEELI has received grants to help Central

and East Europe and the NIS create new legal frameworks based

on the rule of law rather than through party doctrine or caprice.

Through a variety of program components, CEELI is making

available legal expertise to assist countries that are in the process

of modifying or restructuring their laws or legal systems. CEELI

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emphasizes long-term engagement country-by-country and supports

projects that facilitate extensive consultations with policy-makers,

legal scholars, judges, and attorneys. CEELI has focused work in

several critical priority areas: constitutional reform; judicial restructuring; bar reform; commercial law; criminal law and procedure; and legal education reform, and has helped develop and/or institutionalize self-sustaining indigenous nongovernmental organizations (NGOs). The Committee encourages support for this type of

private sector involvement.

TRAINING AND EXCHANGES IN THE FORMER SOVIET UNION AND

CENTRAL EUROPE

The Committee continues to support training, exchanges, and

partnerships between the United States and the nations of Eurasia, Central Europe, and the southern tier of Europe. These programs are in the interest of the United States and important to

sustaining democracies. The Committee recommends the Administration provide funding for the Russian, Eurasian, and East European Research and Training Program (Title VIII) at the fiscal year

2000 level.

The Committee recommends the East Central European Scholarship Program (ECESP) be continued at least at the same level as

fiscal year 2001 to allow the program to continue to address the

needs of the countries in the southern tier of Central Europe.

ASSISTANCE FOR THE INDEPENDENT STATES OF THE FORMER SOVIET

UNION

Fiscal year 2001 level ......................................................................... $810,000,000

Fiscal year 2002 request .................................................................... 808,000,000

Committee recommendation .............................................................. 768,000,000

The Committee recommends $768,000,000 for Ukraine, the

Southern Caucasus states, Russia, and the Central Asian republics

of the former Soviet Union. This is $40,000,000 less than the request and $42,000,000 less than the enacted fiscal year 2001 level.

The Committee has included in subsection (a) prior year language providing the funds under this heading ‘‘notwithstanding

any other provision of law’’ and applying the provisions of section

498B(j) of the Foreign Assistance Act. A general provision (section

517) also includes long-standing language on human rights, and

non-use of funds for enhancing military capacities, and providing

all funds subject to separate notification.

CHILD SURVIVAL AND HEALTH

The Committee continues to be concerned about the low priority

assigned to declining maternal and environmental health conditions and the increasing incidence of TB/HIV/AIDS in Russia,

Ukraine, and the Central Asian Republics. The positive results

achieved with the small amounts already spent for such programs

in recent years have been dramatic. The health and child survival

sector can effectively absorb increased resources, with an immediate and personal impact on the demographically-stressed citizens

of these nations. In order to demonstrate its support for these high

priority activities that directly affect the citizens of these countries,

52

the Committee has included bill language allocating not less than

$45,000,000 for them.

The Committee is aware of and commends the Birth Defects

Monitoring Program recently instituted in Ukraine to detect the incidence of birth defects related to the Chernobyl accident. The

Committee recommends that not less than $1,000,000 be provided

for this purpose and a proposed program to fortify flour with folic

acid to reduce the occurrence of spina bifida in Ukraine in fiscal

year 2002. The Committee also commends AID for its efforts to prevent the trafficking of young women from the region and expects

successful programs to be expanded. The Primary Health Care Initiative of the World Council of Hellenes, has come to the attention

of the Committee. Funded by the Coordinator’s Office of Humanitarian Assistance in fiscal years 2000 and 2001, this project merits

consideration, based on its success, for additional funding in 2002. ‘‘The Committee recognizes the work of the Eurasian Medical

Education Program of the American College of Physicians in continuing medical education of Russian physicians in the treatment

of tuberculosis, cardiovascular disease, and diabetes. This exchange

program has given volunteer American physicians the opportunity

to share experiences and knowledge with their Russian colleagues,

greatly benefiting the people of the Russian Federation. The Committee urges continued AID support for this program.

INTERNATIONAL AND COMMUNITY PARTNERSHIPS IN EURASIA

The Committee commends the American International Health

Alliance (AIHA) and its partners in the new community-based primary health care partnership program in the former Soviet Union

and Eastern Europe. This innovative program is actively improving

local health systems in the former Soviet bloc that have deteriorated over the past decade, especially as they affect services to

women and children.

Examples of successful partnerships between the Volgograd State

Medical Academy in Russia and the University of Arkansas for

Medical Sciences and between Atlanta and Tiblisi, Georgia, have

been brought to the Committee’s attention. This program has been

mutually beneficial to both Georgias, Russia and the United States

as young medical professionals from Russia receive advanced medical training delivered in a rural setting. The Committee strongly

recommends that AID extend and expand this program, matched

by non-Federal contributions.

An example of a non-health partnership is the ArizonaKazakhstan Partnership Foundation, which began as a TusconAlmaty sister city relationship in 1989 and now includes as many

as five sub-partnerships, ranging from the Tuscon Chamber of

Commerce to the League of Women Voters and United Way. Identified by AID as one of its key partnerships, the Committee supports

the continuation, and, if feasible, the expansion of this and similar

regional programs.

RUSSIA-IRAN

The Committee again recommends language dealing with Russian nuclear and ballistic missile cooperation with Iran. The language is identical with that contained in existing law. The Committee remains extremely disturbed by reports, which indicate that

53

Russian entities are extensively engaged with Iran in cooperative

projects that significantly enhance Iran’s ballistic missile capabilities. The ballistic missile cooperation, combined with Russian nuclear cooperation with Iran, represent a significant step in Iran’s

efforts to obtain a comprehensive, highly sophisticated weapons of

mass destruction capability. The Committee reiterates the language from the fiscal year 2000 Statement of the Managers ‘‘that

assistance to combat infectious diseases, child survival and nonproliferation activities, support for regional and municipal governments, and partnerships between United States hospitals, universities, judicial training institutions and environmental organizations and counterparts in Russia should not be affected by this section.’’

SOUTHERN CAUCASUS REGION: ARMENIA, AZERBAIJAN, AND GEORGIA

VICTIMS OF THE NAGORNO-KARABAGH CONFLICT

Again this year, the Committee designates as a high priority U.S.

assistance to the victims of the Nagorno-Karabagh conflict, both

those residing in and displaced from Nagorno-Karabagh. With regard to the former, the Committee directs, without further delay,

that the remainder of the $20,000,000 in humanitarian assistance

initially provided in the fiscal year 1998 Act be immediately released for obligation.

SUPPORT OF PEACEFUL RESOLUTION OF SOUTH CAUCASUS CONFLICTS

The Committee reiterates themes included in its last four reports:

The extent and timing of United States and multilateral assistance, other than humanitarian assistance, to the government of

any country in the Caucasus region should be proportional to its

willingness to cooperate with the Minsk Group and other efforts to

resolve regional conflicts.

In furtherance of a peaceful resolution to the Nagorno-Karabagh

conflict, and in support of the confidence building measures discussed at NATO and OSCE summits, the Committee strongly supports confidence-building measures among the parties to the conflict. Such measures could include strengthening compliance with

the cease-fire, studying post-conflict regional development such as

water management, transportation routes and infrastructure, establishing a youth exchange program and other collaborative and

humanitarian initiatives to foster greater understanding among the

parties and reduce hostilities.

The Committee has included renewed authority for the President

to provide humanitarian assistance to the region, notwithstanding

the restrictions of Section 907 of the FREEDOM Support Act. The

bill language is unchanged from last year. This exemption allows

for direct assistance by American NGOs to refugees and displaced

persons throughout the region, including those in NagornoKarabagh. The Committee understands that humanitarian assistance may include a broad range of activities and partnerships with

United States hospitals and universities in maternal and children’s

health, eldercare, basic education and environmental health.

The Committee also reiterates the statement contained in prior

year reports on this bill that its actions regarding Armenia and

54

Azerbaijan are not meant to express a view on the political status

of Nagorno-Karabagh.

ARMENIA

The Committee recommends that $82,500,000 be made available

from funding sources in this title for Armenia. This is $12,500,000

above the request. The Committee is aware of the work of the Armenian Technology Group in assisting the Armenian private sector

in a seed multiplication program. The Committee continues to support the expansion of these efforts in additional countries in the

Central Asia region.

GEORGIA

The Committee recommends that $82,500,000 be made available

from funding sources in this title for the Republic of Georgia. This

is $7,500,000 less than the request. The Committee intends that a

significant part of the assistance for Georgia continue to be provided for technical security assistance for border and export control.

UKRAINE

The Committee recommends that not more than $125,000,000 be

made available for Ukraine from this account. This recommendation is based on the completion of a long term parameter display

systems project in nuclear safety, the continuing setbacks to needed reform, and the unresolved deaths of prominent dissidents and

journalists in Ukraine. The Committee again notes that one of the

most important elements of private sector development is agriculture and rural industry based on agriculture. The Committee

supports continuing efforts to help emerging small, private farms

and independent private suppliers and marketing operations in the

independent states.

As private sector development is expedited by the introduction of

community-owned telecommunications systems, universal access to

information gives small-scale producers information about market

conditions that allow their businesses or farms to succeed. The

Committee renews its advice that AID emphasize community-based

telecommunications projects in its regional initiatives.

EXPANDED THREAT REDUCTION

The Committee includes $15,000,000 for the bilateral U.S. Civilian Research and Development Foundation (CRDF) in this account,

and not less than the request of $15,000,000 for the Georgia Border

Security and Related Law Enforcement Assistance Program.

The Committee recommends that of the amounts provided for

ETR activities, up to $2,000,000 be made available for collaborative

research grants for American and Russian scholars concerning the

enhancement of verification of arms control and nonproliferation

agreements, confidence-building measures to enhance international

security, and economic and political studies of defense conversion.

ENTERPRISE FUNDS

The Committee is concerned that the initial funding allocations

made to the U.S. Russia Investment Fund (TUSRIF) and the WestVerDate 11-MAY-2000 01:23 Jul 18, 2001 Jkt 073687 PO 00000 Frm 00054 Fmt 6659 Sfmt 6602 E:\HR\OC\HR142.XXX pfrm02 PsN: HR142
55

ern NIS Enterprise Fund in fiscal year 2000 were inadequate. The

Committee urges the State Department and AID to provide not less

than an additional $40,000,000 to TUSRIF over the fiscal years

2002 and 2003, as the Fund demonstrates its ability to promote the

development of a market economy in Russia. The Committee commends the Fund’s innovative housing mortgage program. In return

for a more rapid rate of Federal investment in TUSRIF, the Committee expects it to work more closely with United States companies and investors and with businesses located in the vicinity of

U.S. regional investment cities.

The Committee welcomed the return of $40,000,000 to the U.S.

Treasury by the Fund’s companion enterprise fund in Poland, and

anticipates the receipt of an additional $40,000,000 in fiscal year

2001. The Committee expects that more rapid capitalization of the

U.S. Russian Investment Fund may lead over time to a similar repatriation of foreign aid funds to the U.S. Treasury.

VIOLENCE AGAINST WOMEN

The Committee continues to be very concerned about the incidence of violence against women in Russia, Ukraine, and Central

Asia and the indifference of many law enforcement officials to such

crimes. Funds should be made available to improve the response of

Russia’s and Central Asia’s law enforcement and judicial system to

women victims of violence.

DEMOCRACY PROGRAMS

Given the increasing repression of the fledgling institutions of

civil society and general reversal of progress towards democracy in

the Russian Federation and Ukraine, $4,000,000 should be made

available through the National Endowment for Democracy and its

subgrantees to assist nongovernmental organizations (NGO’s).

Such funding should be made available pursuant to section 632(a)

of the Foreign Assistance Act. Special emphasis should be given to

programs promoting human rights, freedom of information, market

reform, rule of law, political party development, freedom of association and NGO development. Attention should be devoted to programs outside of the capital cities and to cross-border programs

that promote the exchange of experience and information among

the countries of Central and Eastern Europe, Russia and Ukraine.

RELIGIOUS FREEDOM IN RUSSIA

The Committee continues to be concerned about the dire consequences to several religious groups resulting from regional enforcement of the religious freedom statute in the Russian Federation.

The recommended bill again includes language addressing this

matter that is identical with language in the prior years Acts.

The Committee does not intend that the limitation on assistance

to the ‘‘Government of the Russian Federation’’ limit assistance for

regional and municipal governments or partnerships between

United States hospitals and universities and counterpart institutions in Russia.

56

INDEPENDENT AGENCIES

INTER-AMERICAN FOUNDATION

Fiscal year 2001 level ......................................................................... ($12,000,000)

Fiscal year 2002 request .................................................................... (12,108,000)

Committee recommendation .............................................................. 12,000,000

The Committee recommends $12,000,000 for the Inter-American

Foundation, as a separate account, not provided through the ‘‘Development Assistance’’ account as in past years. The Committee

recommendation is the same as last year’s level and is $108,000

below the budget request. The Committee is concerned about the

results of the USAID Inspector General audit (April 2, 2001) on the

Inter-American Foundation’s financial statements, compliance, and

internal controls for fiscal year 2000. Specifically of concern to the

Committee is the inability of the IG to express an opinion on financial statements because IAF’s financial management systems could

not produce complete and reliable financial statements. Additionally of concern are the three material internal control weaknesses

related to financial management systems and three instances of

material non-compliance with selected provisions of applicable laws

and regulations. The Committee urges the IAF to implement the

recommendations made by the IG audit and keep the Committee

updated on a quarterly basis.

AFRICAN DEVELOPMENT FOUNDATION

Fiscal year 2001 level ......................................................................... ($16,000,000)

Fiscal year 2002 request .................................................................... (16,042,000)

Committee recommendation .............................................................. 16,042,000

The Committee recommends funding for the African Development Foundation at a level of $16,042,000, provided as a separate

account, not through the ‘‘Development Assistance’’ account as in

past years. This is an increase of $42,000 above the fiscal year

2001 level and equal to the request.

PEACE CORPS

Fiscal year 2001 level ......................................................................... $265,000,000

Fiscal year 2002 request .................................................................... 275,000,000

Committee recommendation .............................................................. 275,000,000

The Committee recommends $275,000,000 for the Peace Corps,

an amount that is equivalent to the budget request and

$10,000,000 above the amount enacted for fiscal year 2001. Prior

year language addressing purchase of motor vehicles, abortion, and

availability of funds has been continued in the bill. The Committee

supports the work of the Peace Corps and of its volunteers who

currently work in 76 countries.

DEPARTMENT OF STATE

INTERNATIONAL NARCOTICS CONTROL AND LAW ENFORCEMENT

Fiscal year 2001 level ......................................................................... $325,000,000

Fiscal year 2002 request .................................................................... 217,000,000

Committee recommendation .............................................................. 217,000,000

57

The Committee recommends $217,000,000 for ‘‘International

Narcotics Control and Law Enforcement’’. This is equivalent to the

budget request and $108,000,000 less than the fiscal year 2001

level. The 2001 enacted level included $154,000,000 for Andean nations, which is requested in the Andean Counterdrug initiative account for fiscal year 2002. A limitation of $16,660,000 is recommended for administrative expenses. The Committee has included bill language requiring that all funds in this account for

anti-crime activities be notified in advance to the Committees on

Appropriations, including those which make use of ‘‘notwithstanding’’ authority. The Committee supports the use of up to

$10,000,000 in funds for the Africa Regional Anticrime Program.

The Committee continues to support a strong U.S. counternarcotics assistance program in order to protect U.S. communities

from the ravages of drugs, and believes INL has considerable resources, made available through annual and supplemental appropriations, to meet these challenges. The Committee is concerned

about proposals by the Department of State to use INL program

funds for an increasing number of non-program costs, therefore the

Committee has recommended a limitation on administrative expenses. The limitation is equivalent to the non-Andean administrative expenses as justified in the 2002 INL budget.

EAST ASIA

The Committee is concerned with the increasing illegal drug trafficking into the United States from East Asia, especially in Vietnam, Cambodia and the Philippines. The Committee continues to

support International Narcotics Control programs in East Asia designed to strengthen law enforcement institutions so they can better deal with increases in drug trafficking. Further, the Committee

commends INL for its plans to enhance its existing regional

counter-drug cooperation programs in this region.

SW ASIA

Southwest Asia produces more opium than any other region in

the world. The Committee encourages INL to participate in a joint

U.S.-Pakistan initiative to curb cultivation and trafficking in the

Khyber Agency of the Northwest Frontier Province.

DRUG CERTIFICATION

The Committee is concerned that the United States’ annual drug

certification process fails to establish an effective and accountable

drug policy, while creating tensions with our neighbor, Mexico. The

Committee strongly supports change to the present certification

process. Priority should be given to installing a sound accountability system where an obligation to deterring drug trafficking is

the ultimate goal. The Committee asks the Secretary of State to

work with the appropriate committees of Congress to modify the

certification process to mirror the concerns made by the Committee.

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ANDEAN COUNTERDRUG INITIATIVE

Fiscal year 2001 level ......................................................................... ............................

Fiscal year 2002 request .................................................................... $731,000,000

Committee recommendation .............................................................. 676,000,000

The Committee recommends $676,000,000 for the ‘‘Andean

Counterdrug Initiative’’. The Andean Counterdrug Initiative is the

first step in the Administration’s multi-year counterdrug assistance

effort designed to sustain and expand programs initially funded by

Plan Colombia in the fiscal year 2000 emergency supplemental.

The recommended level is $55,000,000 less than the request. The

Committee recommends that the reduction of $55,000,000 should

be evenly distributed among all programs, projects, and activities

referred to in the Administration’s request for the Andean

Counterdrug Initiative. A limitation of $14,240,000 is recommended

for administrative expenses. The 2001 level enacted for ‘‘International Narcotics Control and Law Enforcement’’ included

$154,000,000 for Andean nations. The fiscal year 2000 supplemental provided for $1,018,500,000 in emergency funds to the Department of State for Plan Colombia and other regional anti-narcotics activities.

The Committee notes that section 520 of the bill applies to the

use of Narcotics Control and Law Enforcement and Andean

Counterdrug Initiative funds for Colombia.

ANDEAN NATIONS

The Committee calls on the Department of State to ensure that

all U.S. laws regarding human rights, including section 556 of this

Act, are strictly applied in Colombia and each of the Andean nations. In addition, the Committee requests that the Secretary of

State submit to the Appropriations Committees a semi-annual report beginning not later than March 1, 2002, with respect to the

Andean Counterdrug Initiative. Each report shall include an accounting of all aircraft, vehicles, boats and lethal equipment (other

than ammunition) transferred to the militaries or police of any nation with funds made available under this heading. Further, the report shall contain an accounting of the number of U.S. Armed

Forces personnel deployed or assigned to duty in the Andean Region or other nation at any time during the preceding 180 days

with funds made available under this heading, the length and purpose of the deployment or assignment, and the associated costs and

force protection risks.

COLOMBIA

The Committee believes that a negotiated settlement offers the

only viable resolution to the complex conflict in Colombia. Until Colombia’s warring parties reach a peace accord, efforts to reduce

coca and heroin-poppy production in that country will continue to

face enormous challenges. The Committee commends the State Department for declarations of support for President Pastrana’s attempts to negotiate with guerrilla groups. Though a final accord

may be several years away, the Committee strongly urges the Secretary of State to work with all parties in the talks to encourage

rapid progress toward a firm and lasting peace.

59

IMPLEMENTATION OF PLAN COLOMBIA

The Committee is concerned about the pace of implementation of

alternative development in the southern regions of Colombia. While

the Committee is pleased that the eradication and aerial spraying

is proceeding according to schedule, the Committee believes that

successful alternative development programs are an essential component to Plan Colombia’s success in Putamayo and Caqueta.

Eradication efforts can only be sustained in the long-term if small

farmers have an alternative to growing coca, therefore the Committee urges AID and the State Department to work with the Government of Colombia to resolve the logistical problems preventing

the delivery of non-cash assistance to the communities that have

signed pacts to voluntarily eradicate their coca crops.

The Committee requests that the Secretary of State submit to

the Appropriations Committees a semi-annual report beginning not

later than March 1, 2002, with respect to the specific efforts being

made by AID, the State Department and the Colombian Government to expedite the delivery of non-cash assistance to communities in Colombia that have signed pacts to voluntarily eradicate

their coca crops. This report shall include complete data on the percentage of available alternative development funds that have been

disbursed to communities in Colombia that have signed pacts to

voluntarily eradicate their crops.

The Committee notes that the people of Colombia have shown a

long-term resilience and tolerance for difficult and violent conditions, but the Committee is concerned about the urgency of the current situation facing Colombia. In addition to heightened violence,

worsening economic conditions encourage the narco-industry and

deteriorating fiscal conditions could threaten the Government of

Colombia’s commitment to Plan Colombia. Stronger trade between

Colombia and the United States in licit industries is crucial to

managing the vulnerabilities of the Colombian economy, therefore

the Committee urges the President of the United States to seek renewal and expansion of the Andean Trade Preferences Act (ATPA).

The Committee is concerned about the possible human and environmental impact of materials used in aerial eradication of coca

and opium poppy in Colombia carried out under chapter 8 of part

I of the Foreign Assistance Act of 1961, as amended. The Committee directs the Secretary of State to provide a report to the

Committees on Appropriations of the House of Representatives and

the Senate, on January 1, 2002, on the human and environmental

impact of all materials used in such aerial coca and opium poppy

eradication in Colombia. The report shall include guidelines for the

application of aerially sprayed materials, scientific and other justifications for such guidelines, as well as a description of a

verification system to ensure compliance with those guidelines. The

Committee further directs that the Secretary of State provide quarterly reports, to be first issued January 1, 2002, concerning all aerial eradication efforts of the previous quarter. Such reports shall

include a description of all areas sprayed, materials and methods

used, compliance with the spray guidelines, and the human and environmental impacts of such spraying.

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BOLIVIA

The Committee takes special note of the progress that Bolivia

has made in the war against drugs. The enormous success of the

Bolivian Government’s Dignity Plan has been due, in large part, to

the support of the U.S. Government. The Committee urges the Administration to continue its strong support of Bolivia’s efforts when

deciding its allocation of aid.

EUROPEAN CONTRIBUTIONS

The Committee notes that demand for Colombian coca is rising

in Europe and approaching United States consumption levels of approximately 300 tonnes a year. European nations and the European Union have contributed very little to Plan Colombia or an expanded Andean Initiative. The Committee urges the Secretary of

State to negotiate with our European allies in order to persuade

them to contribute additional funds to the counter-narcotics efforts,

alternative development, or judicial reform in the Andean region.

MIGRATION AND REFUGEE ASSISTANCE

Fiscal year 2001 level ......................................................................... $700,000,000

Fiscal year 2002 request .................................................................... 715,000,000

Committee recommendation .............................................................. 715,000,000

The Committee recommends $715,000,000 for ‘‘Migration and

Refugee Assistance’’, an amount that is the same as the request

and is $15,000,000 more than the amount enacted for fiscal year

2001. A limitation of $15,000,000 is recommended for administrative expenses.

TIBETAN REFUGEES

The Committee supports continued funding to assist Tibetan refugees and directs $2,000,000 for this purpose. The Committee requests that the Department of State coordinate with the Agency for

International Development in determining the funding responsibility for long-term assistance for Tibetan refugees, including assistance to refugees residing in India. In that regard, the Committee would support the proposal to fund the Tibetan Resettlement Project in Dehradum, consistent with Tibetan cultural practices.

RESETTLEMENT IN ISRAEL

The Committee supports $60,000,000 for the resettlement of Russian, Eastern European, Ethiopian, and other humanitarian migrants in Israel. In light of the unsettled conditions in Russia and

Ukraine as well as the increase in immigration from Ethiopia, the

Committee believes that this level of funding should be sustained

to ensure a continuation of essential programs now serving this

population.

MAGEN DAVID ADOM SOCIETY

The Committee is disappointed the International Committee of

the Red Cross (ICRC) has not taken action to admit the Magen

David Adom Society of Israel to the International Red Cross and

Red Crescent Movement. The American Red Cross has promoted

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the membership of the Society in the Movement, but little or no

positive action has been forthcoming. As a result, the American

Red Cross has withheld its headquarters contribution to the ICRC

for the past two years. The Committee is recommending bill language that would also withhold the annual headquarters contribution made by the Department of State unless the Magen David

Adom Society is given the opportunity to participate in the activities of the International Red Cross and Red Crescent Movement.

This limitation will not, and is not intended to, restrict funding for

humanitarian assistance programs that may be programmed

through the ICRC using other funds provided in this account. It is

only intended to affect the funding of approximately $8,000,000

that the United States provides on an annual basis to the ICRC bureaucracy in Geneva.

UNACCOMPANIED AND AT-RISK CHILDREN

The Committee supports funding for programs for unaccompanied and at-risk refugee children. The Committee believes that

the United Nations High Commissioner for Refugees (UNHCR)

should pay more attention to this issue. The Committee recommends that the Department of State provide funding through

nongovernmental organizations and United Nations agencies for

children who are orphaned, separated from their parents, or have

other special needs as a result of armed conflict or other causes of

forced migration.

UNHCR

The Committee is aware that the Department of State traditionally contributes twenty to twenty-five percent of the funds required

for refugee programs managed by the United Nations High Commissioner for Refugees and certain other international relief agencies. The U.S. percentage has escalated in the past few years as

European nations have not followed through with pledged contributions. The Committee supports the High Commissioner in his efforts to increase UNHCR contributions from Europe.

UNRWA

The Committee supports the efforts of the Department of State

to remove anti-Semitic content in textbooks and curricula used in

schools in the West Bank and Gaza administered by the United

Nations Relief and Works Agency for Palestine Refugees in the

Near East (UNRWA). The Committee has previously expressed

concern about anti-Semitic content in Palestinian textbooks and

supports the efforts of the Department of State to redress such content in UNRWA schools, including the appointment of an education

specialist in the region to serve as a liaison between the Department of State, UNRWA, and the Palestinian Ministry of Education.

UNITED STATES EMERGENCY REFUGEE AND MIGRATION ASSISTANCE

FUND

Fiscal year 2001 level ......................................................................... $15,000,000

Fiscal year 2002 request .................................................................... 15,000,000

Committee recommendation .............................................................. 15,000,000

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The Committee recommends $15,000,000 for the Emergency Refugee and Migration Assistance (ERMA) Fund, which is the same

as the 2001 enacted level and the same as the 2002 budget request.

The Committee notes that, as of June 1, 2001, the ERMA Fund

maintained a balance of approximately $105,000,000. Again this

year, the ERMA Fund continues to carry forward high levels of balances. The Committee considers it appropriate for the ERMA Fund

to maintain a sizable balance, since the purpose of this account is

to facilitate a quick response to humanitarian emergencies. The

Committee is concerned that the Administration may be using an

overly stringent standard in judging whether to draw down the

ERMA Fund. The primary criterion for the use of these resources

should be the emergency needs of refugees and other persons who

fall within the mandate of the ERMA Fund. The Committee directs

the Administration to use this Fund when these populations face

serious threats to their security or physical well-being and other resources are not available to address these threats. The Committee

does not wish to see a situation in which critical humanitarian

needs go unmet while a large fund created to address these needs

largely remains untouched.

NONPROLIFERATION, ANTI-TERRORISM, DEMINING AND RELATED

PROGRAMS

Fiscal year 2001 level ......................................................................... $311,600,000

Fiscal year 2002 request .................................................................... 332,000,000

Committee recommendation .............................................................. 311,000,000

The Committee recommends a total appropriation of

$311,000,000 for ‘‘Nonproliferation, Anti-terrorism, Demining and

Related Programs’’, an amount that is $21,000,000 below the request and $600,000 below the fiscal year 2001 enacted level.

The Committee recommendation funds the President’s budget request for this account with the exception of the additional funding

requested for the Lockerbie trial support (¥$16,000,000) and a reduction of $5,000,000 in the funding for the Korean Peninsula Economic Development Organization (KEDO).

The Committee has included bill language from the fiscal year

2001 appropriations act that imposes the requirement for notice

prior to the obligation of funds for the CTBT Preparatory Commission.

The following is a chart that indicates fiscal year 2001 funding

for the programs covered by this account, as well as the President’s

request for fiscal year 2002 and the Committee recommendation:

Program or activity Fiscal year 2001

funding level

Fiscal year 2002

request

Committee recommendation

Nonproliferation and Disarmament Fund ....................................... 14,967,000 14,000,000 14,000,000

Export Control Assistance ............................................................... 19,100,000 17,000,000 17,000,000

Science Centers .............................................................................. 35,000,000 37,000,000 37,000,000

IAEA voluntary contribution ............................................................ 47,000,000 49,000,000 49,000,000

CTBT Preparatory Commission ........................................................ 21,056,000 20,000,000 20,000,000

Korean Peninsula Energy Development Organization ..................... 54,879,000 95,000,000 90,000,000

Nonproliferation contingency .......................................................... 20,000,000 ............................ ............................

Anti-Terrorism Assistance ............................................................... 38,000,000 38,000,000 38,000,000

Terrorist Interdiction Program ......................................................... 4,000,000 4,000,000 4,000,000

Lockerbie Trial Support ................................................................... 15,000,000 16,000,000 ............................

Humanitarian Demining Program ................................................... 39,912,000 40,000,000 40,000,000

Small Arms Destruction .................................................................. 2,000,000 2,000,000 2,000,000

63

Program or activity Fiscal year 2001

funding level

Fiscal year 2002

request

Committee

recommendation

Rescission ....................................................................................... 686,000 ............................ ............................

Total budget authority ........................................................... 311,600,000 332,000,000 311,000,000

The funding reduction for KEDO is being made with the expectation the Administration will renew its efforts to obtain funding

from other donors to help offset the increase in costs for the provision of heavy fuel oil for North Korea pursuant to the Agreed

Framework. Regarding the funding for the Lockerbie Trial, the

Committee is very concerned about the types of costs that are being

charged to the United States in connection with this trial, and believes that sufficient funds were made available in fiscal year 2001.

KOSOVO DEMINING

The Committee is very concerned about the extent to which additional unexploded ordnance (UXO) and mine removal may be needed in Kosovo. While the United Nations has general authority for

mine removal activities in that region, the Committee is aware

there may be an unmet need for additional resources. Therefore the

Committee directs the Secretary of State to report to the Committee on Appropriations no later than February 1, 2002, with (1)

an assessment of the UXO removal and demining activities that

have occurred in Kosovo; (2) an assessment of the remaining needs

for such removal; and (3) recommendations as to how the need for

additional resources can be met. In that regard, the Committee encourages the Department of State to examine the use of the Rapid

Response Program of the Corps of Engineers as a mechanism for

providing for UXO removal and demining activities. In addition,

the Committee would support the reprogramming of funds provided

under the heading ‘‘Assistance for Eastern Europe and the Baltic

States’’ and within this account to help meet a possible funding

shortfall for these activities.

DEPARTMENT OF THE TREASURY

INTERNATIONAL AFFAIRS TECHNICAL ASSISTANCE

Fiscal year 2001 level ......................................................................... $6,000,000

Fiscal year 2002 request .................................................................... 6,000,000

Committee recommendation .............................................................. 6,000,000

The Committee recommends $6,000,000 under this heading for

international technical assistance by the Department of the Treasury, an amount that is the same as the request and last year’s

level. In operation since 1991, Treasury’s Office of Technical Assistance provides expert fiscal and monetary policy advisors to countries of the former Soviet Union and Eastern Europe. Beginning in

fiscal year 1999, Treasury created the Treasury International Affairs Technical Assistance (TIATA) program and expanded the

countries to Asia, Africa and Latin America. With the Poverty Reduction Strategy Papers (PRSPs) and other conditions required by

the poorest nations to qualify for HIPC debt relief, the Committee

directs the Department of Treasury to begin to focus half of the

funds under this heading to assisting eight or more HIPC nations.

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ject to notification procedures and therefore directs the Department

to report back to the Committee on its plans for HIPC nations for

fiscal year 2002 prior to the release of the funds.

GLOBAL FUND TO FIGHT HIV/AIDS, MALARIA, AND TUBERCULOSIS

Fiscal year 2001 level ......................................................................... ............................

Fiscal year 2002 request .................................................................... $100,000,000

Committee recommendation .............................................................. ............................

The Committee is not recommending establishment of a separate

account for a proposed multilateral health trust fund, as proposed

by the President. Instead, full funding would be provided from the

‘‘Child Survival and Health Programs Fund’’ in this bill and from

the unobligated balance reserved for a multilateral HIV/AIDS trust

fund in the fiscal year 2001 Act.

DEBT RESTRUCTURING

Fiscal year 2001 level ......................................................................... $238,000,000

Emergency funding ..................................................................... 210,000,000

Fiscal year 2002 request .................................................................... 224,000,000

Committee recommendation .............................................................. 224,000,000

The Committee recommends $224,000,000 for debt restructuring

for fiscal year 2002. This is $224,000,000 below the amount enacted

in 2001, including emergency funding, and the same as the request.

The Committee supports the request for debt relief that, with

$16,000,000 in carryover balances, will complete the US pledge to

the HIPC Trust Fund. It also directs that up to $25,000,000 in

prior year funds be used to implement the Tropical Forest Conservation Act of 1998, $12,000,000 more than the request, which

provided the funds as a transfer from ‘‘Development Assistance.’’

HIPC TRUST FUND

The vehicle for contributions to multilateral development banks

is the Heavily Indebted Poor Country (HIPC) Trust Fund that was

created and is administered by the International Bank for Reconstruction and Development. The HIPC Trust Fund accepts contributions from more developed countries to help the Inter-American Development Bank, the African Development Bank, the Central American Bank for Economic Integration, and possibly other financial institutions, to defray the cost of writing down unserviceable debt owed by certain member countries.

The following table indicates the financial status of the HIPC

Trust Fund as of May 30, 2001:

[Amounts in millions of U.S. dollars]

Contributions

received Pledges Total

Australia .................................................................................................................. 10 2 12

Austria ..................................................................................................................... 17 25 42

Belgium ................................................................................................................... 40 .................... 40

Canada .................................................................................................................... 112 .................... 112

Denmark .................................................................................................................. 50 10 60

Finland .................................................................................................................... 25 8 33

France ..................................................................................................................... 160 21 181

Germany .................................................................................................................. 178 48 226

Greece ..................................................................................................................... 9 2 11

Iceland .................................................................................................................... 1 1 2

Ireland ..................................................................................................................... 19 5 24

65

[Amounts in millions of U.S. dollars]

Contributions

received Pledges Total

Italy ......................................................................................................................... 105 48 153

Japan ....................................................................................................................... 56 144 200

Luxembourg ............................................................................................................. 2 .................... 2

Netherlands ............................................................................................................. 172 .................... 172

New Zealand ........................................................................................................... 2 .................... 2

Norway ..................................................................................................................... 79 .................... 79

Portugal ................................................................................................................... 21 .................... 21

Spain ....................................................................................................................... 54 70 124

Sweden .................................................................................................................... 46 35 81

Switzerland .............................................................................................................. 45 15 60

United Kingdom ...................................................................................................... 161 145 306

United States .......................................................................................................... .................... 600 600

Total ............................................................................................................... 978 1,566 2,544

Since the above table was made available to the Committee, a

$122,740,000 initial contribution to the trust fund has been made

by the US and will allow for debt relief to Bolivia, Honduras,

Madagascar, and Sao Tome & Principe. Each of these four countries has demonstrated its commitment to redirect budgetary savings from debt servicing to programs that reduce poverty and promote economic growth. The Committee’s cautious approach to funding for the HIPC Trust Fund continues. It is the Committee’s view

the HIPC Initiative will be extremely difficult to implement. Public

and private vigilance will be required to ensure that domestic

budgetary savings resulting from reduced sovereign debt payments

under the HIPC Initiative will, in fact, be used by poor country

governments solely for economic growth and social/health activities

aimed at poverty alleviation. Additionally, the Committee believes

that debt relief was not intended to be the one solution to the challenges facing HIPC countries. Instead it must be seen as only one

step toward poverty alleviation that, if not accompanied by effective

reforms and an improvement of the conditions that attract investment and economic growth, will result in only short lived benefits

to the poorest peoples of the world.

CONDITIONS ON CONTRIBUTIONS TO HIPC TRUST FUND

The Committee has included bill language prohibiting United

States contributions to the HIPC Trust Fund on behalf of any country credibly reported to be a gross violator of internationally recognized human rights or is engaged in a civil or military conflict that

undermines its ability to fulfill the HIPC criteria regarding poverty

alleviation.

The Committee also has recommend bill language that conditions

funding for the HIPC Trust Fund on Agreement that new lending

to HIPC participants by beneficiary multilateral development

banks be deferred for up to 24 months. It is the Committee’s intent

that debt reduction under the enhanced HIPC Initiative not be

taken as a signal for renewed lending by international financial institutions or export financing agencies.

ACCOUNTABILITY AND FUTURE SUPPORT FOR THE HIPC INITIATIVE

The Committee again requests quarterly reports on obligations

made from this account, and on the purposes for which the funds

66

are obligated. During the first quarter of the fiscal year, the Department of the Treasury should continue to report to the Committee pursuant to the regular notification procedures of the Committees on Appropriations on the intended use of the funds provided in this account. Such report should specify the countries that

would receive debt restructuring during fiscal year 2002. The Committee understands that credit ratings can fluctuate during the

year, thus resulting in a change in the budget cost necessary to restructure debt.

UNITED STATES COMMUNITY ADJUSTMENT AND INVESTMENT

PROGRAM

Fiscal year 2001 level ......................................................................... ............................

Fiscal year 2002 request .................................................................... 500,000

Committee recommendation .............................................................. ............................

The Committee is not recommending additional appropriations at

this time for a domestic program for community investment and

adjustment within the United States. The Community Adjustment

and Investment Program was initially ‘‘fully funded’’ with a 3-year

capitalization of $22,500,000 and since has received $20,000,000 in

additional appropriations to date. Based on a September 2000 GAO

report, the CAIP has systemic problems in its organizational structure; a management system that hinders efficient program management; and faulty eligibility procedures. The Committee is not

aware of how an additional $500,000 to the CAIP could improve US

trade adjustment assistance in 2002.

TITLE III—MILITARY ASSISTANCE

FUNDS APPROPRIATED TO THE PRESIDENT

INTERNATIONAL MILITARY EDUCATION AND TRAINING

Fiscal year 2001 level ......................................................................... $55,000,000

Emergency funding ..................................................................... 2,875,000

Fiscal year 2002 request .................................................................... 65,000,000

Committee recommendation .............................................................. 65,000,000

The Committee recommends $65,000,000 for the International

Military Education and Training program, which represents an increase of $7,125,000 above the fiscal year 2001 level and is the

same as the requested level.

INDONESIA AND GUATEMALA

The Committee includes prior year bill language limiting Indonesia and Guatemala to Expanded IMET only. Funding for both is

subject to notification.

EXPANDED IMET

The Committee strongly supports the continuation of Expanded

IMET (E–IMET) programs. In that regard, the Committee notes

that part of the success of the E–IMET programs is dependent on

appropriate equipment critical to the learning process. For example, equipment that enhances simultaneous translation capacity or

remote or distance learning teleconferencing could greatly advance

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sideration within the program budget for such needs. Consequently, the Committee requests that the Administration make

funds available within the E–IMET program as needed to support

equipment and other infrastructure requirements of E–IMET programs.

The Committee also urges the Departments of State and Defense

to favorably consider funding to develop an educational program in

security building and peace support operations at the Naval Postgraduate School. In addition, the Administration should consider

the development of programs to help nations institutionalize financial integrity, accountability and transparency in defense budgeting. Such programs could also help nations eliminate unnecessary forces and military infrastructure, so that their scarce defense

resources can be focused on priorities critical to making them effective security partners with the United States.

GREECE AND TURKEY

For fiscal year 2002, section 512 of the Security Assistance Act

of 2000 (Public Law 106–280) authorizes up to $1,000,000 in assistance for Greece and up to $2,500,000 in assistance for Turkey from

funds that are authorized to be appropriated for International Military Education and Training. From the increase in funds recommended for this account, the Committee supports an increase in

assistance for Greece and Turkey consistent with the authorization

levels.

CHILE

The Committee is aware of the decision by the Chilean Appeals

Court on July 9, 2001 to declare Augusto Pinochet mentally unfit

to stand trial for crimes committed during his 17-year presidency.

While the Committee does not encourage the prosecution of any

person who is mentally incapacitated, the Committee would be concerned if it becomes apparent that pressure from the military

played a role in this decision. The Committee strongly encourages

the Chilean military to respect the independence of the judiciary

and urges the Departments of Defense and State to emphasize this

point in the training and education provided to the Chilean military with IMET funds.

REPORT ON FOREIGN MILITARY TRAINING

The Committee is concerned by the extent of information classified in the fiscal year 2001 Foreign Military Training Report. The

Committee requests the Departments of State and Defense, when

preparing and presenting the Foreign Military Training and Defense Department Engagement Activities of Interest report to Congress in fiscal year 2002 (consistent with national security requirements) not classify aggregate training numbers by country; declassify to the greatest extent possible information about foreign units

trained, the location of training and U.S. trainers’ units; provide

accurate course descriptions; distinguish between the number of

courses given and the number of students trained; and report estimates for coming-year training that include all categories reported.

68

IMET AVAILABILITY

The Committee has retained language from fiscal year 2001

which provides that, of the funds made available for IMET,

$1,000,000 may remain available until expended.

FOREIGN MILITARY FINANCING PROGRAM

Fiscal year 2001 level ......................................................................... $3,545,000,000

Emergency funding ..................................................................... 31,000,000

Fiscal year 2002 request .................................................................... 3,674,000,000

Committee recommendation .............................................................. 3,627,000,000

The Committee recommends $3,627,000,000 in Foreign Military

Financing grants. This program level is $51,000,000 above the fiscal year 2001 level and $47,000,000 below the President’s request.

If emergency supplemental funding is excluded from the calculation, the recommended level is $82,000,000 above the fiscal year

2001 level. The funding level assumes an increase above last year’s

level of $60,000,000 for Israel, as requested by the President.

The Committee remains strongly supportive of the goals of the

Foreign Military Financing (FMF) grants program. However, the

Security Assistance Act of 2000 (Public Law 106–280) contains an

authorization ceiling that is $47,000,000 below the President’s request. Therefore the Committee is complying with the authorization ceiling.

ISRAEL

The Committee recommends a total Foreign Military Financing

(FMF) program of not less than $2,040,000,000 in grants for Israel

which shall be available within 30 days of enactment or by October

31, 2001, whichever is later.

It is the Committee’s view that while Israel’s economy has improved significantly in recent years, the security situation in the

Middle East has worsened. Therefore, the Committee is convinced

the United States must make every effort to carry out its longstanding policy of ensuring that Israel’s technological edge is maintained. As a result, the Committee has provided an increase of

$60,000,000 above the fiscal year 2001 level, as requested by the

President. The Committee also believes that a sustained military

improvement program will be required over the next ten years, at

an annual rate of approximately $60,000,000, to assist Israel in responding to these emerging security challenges. However, with respect to this recommended increase in military assistance, the

Committee must be very clear that it cannot commit future Congresses to the future appropriation of funds. Therefore, future increases in military assistance will require the annual review of the

Congress and will necessarily be based upon an assessment of the

security situation at the time.

The Committee also recommends that, to the extent that the

Government of Israel requests that FMF grant funds for Israel be

used for such purposes, and as agreed by Israel and the United

States, funds may be made available for advanced weapons systems of which $535,000,000 shall be available for the procurement

in Israel of defense articles and defense services, including research

and development. This represents a $15,000,000 increase over the

fiscal year 2001 level and reflects a recognition by the Committee

69

of Israel’s need for similar annual increases over the next few years

in order to provide Israel with increased flexibility in meeting the

emerging security challenges in the Middle East.

JORDAN

The Committee strongly supports the Administration’s efforts to

improve Jordanian security and therefore recommends full funding

of the President’s request of $75,000,000 for Jordan. Under the able

leadership of King Abdullah, Jordan plays a critical role in supporting peace and security in the Middle East. The Committee is

well aware that Jordan’s security requirements are extensive, particularly in the areas of ground force modernization and border security.

EGYPT

The Committee recommends a total of $1,300,000,000 in Foreign

Military Financing grants for Egypt.

Pursuant to the President’s budget request bill language is recommended that would require that funds estimated to be outlayed

for Egypt during fiscal year 2002 shall be transferred to an interest

bearing account for Egypt in the Federal Reserve Bank of New

York within 30 days of enactment of this Act or by October 31,

2001, whichever is later. The Committee fully appreciates Egypt’s

strategic location, its immediate proximity to Libya and Sudan

both of which have supported international terrorism; its critical

contribution during the Gulf War in resisting Iraqi aggression; and

its essential role in the Middle East peace process. The Committee

is convinced that continued military cooperation between Egypt

and the United States remains in the national security interests of

both countries.

THE BALTICS

The Committee strongly supports at least the Presidents’ budget

request of $21,000,000 for Estonia, Latvia, and Lithuania. Previous

years’ funding has significantly supported the commendable efforts

of these countries to attain Western military standards and to improve their capacities to contribute to international security

through the provision of peacekeepers to international peacekeeping missions.

ADMINISTRATIVE EXPENSES

The Committee has recommended a limitation on administrative

expenses of $35,000,000. This is the same as the level requested by

the President and $2,000,000 above the fiscal year 2001 level.

FOREIGN MILITARY FINANCING SURCHARGE

The Committee has included a limitation on Foreign Military Financing operating costs of $348,000,000. This limitation may be

waived pursuant to the regular notification procedures of the Committees on Appropriations. This is $8,000,000 more than the fiscal

year 2001 level and the same as the request.

70

FMF EXPENDITURE RATE

The Committee continues prior year language that requires that

Foreign Military Financing funds be expended at the minimum

rate necessary to make timely payments for defense articles and

services. In addition, it continues language providing that such

funds shall be obligated upon apportionment in order to allow for

the orderly execution of program funds.

PROCUREMENT AGREEMENTS

The Committee has continued prior year language requiring recipients of Foreign Military Financing grants to sign agreements

with the United States prior to using FMF funds to finance the

procurement of any item not sold by the United States under the

Arms Export Control Act.

PROHIBITIONS

The Committee has included bill language prohibiting military

assistance to Sudan and Liberia. The Administration did not request military assistance for Sudan or Liberia for fiscal year 2002.

The Committee continues to support United States assistance to

Guatemala to implement the Guatemalan peace accords. However,

the Committee is concerned about limited progress in certain areas

such as strengthening Guatemala’s justice system and reform of

the Guatemalan military. The Committee urges the Government of

Guatemala to guarantee the safety of those working for human

rights. It is also concerned about attacks and threats against journalists in Guatemala.

The Committee retains the existing ban on Foreign Military Financing and International Military Education and Training

(IMET), with the exception of E–IMET, until adequate reforms of

the Guatemalan Armed Forces are carried out as established in the

peace accords. The Committee is concerned about the postponement of the disbanding of the Presidential General Staff (EMP) and

its replacement by civilian institutions.

PEACEKEEPING OPERATIONS

Fiscal year 2001 level ......................................................................... $127,000,000

Fiscal year 2002 request .................................................................... 135,000,000

Committee recommendation .............................................................. 135,000,000

The Committee recommends $135,000,000 for voluntary contributions for international peacekeeping operations. This amount is

$8,000,000 above the level provided in fiscal year 2001, and is the

same as the President’s request.

TITLE IV—MULTILATERAL ECONOMIC ASSISTANCE

INTERNATIONAL FINANCIAL INSTITUTIONS

GLOBAL ENVIRONMENT FACILITY

Fiscal year 2001 level ......................................................................... $108,000,000

Fiscal year 2002 request .................................................................... 107,500,000

Committee recommendation .............................................................. 82,500,000

71

The Committee recommends $82,500,000 for the Global Environment Facility (GEF), administered by the World Bank. The recommendation is $25,000,000 below the request and $25,500,000

less than the amount enacted for 2001.

CONTRIBUTION TO THE INTERNATIONAL DEVELOPMENT ASSOCIATION

Fiscal year 2001 level ......................................................................... $775,000,000

Fiscal year 2002 request .................................................................... 803,400,000

Committee recommendation .............................................................. 803,400,000

The Committee is providing $803,400,000 for the U.S. contribution to the Thirteenth Replenishment of the International Development Association (IDA), the same as the request and a $28,400,000

increase above the 2001 enacted level.

The Committee directs the Secretary of the Treasury to vigorously advocate that the upcoming pledging session for IDA provide

all-grant assistance to each HIPC debt forgiveness beneficiary for

a period of 3 years following its HIPC decision point. With respect

to its support for multilateral debt forgiveness under certain conditions and conversion of IDA to an agency making poverty alleviation grants, the Committee concurs with the March, 2000 recommendations of the International Financial Institution Advisory

Commission (the Meltzer Commission).

CONTRIBUTION TO THE MULTILATERAL INVESTMENT GUARANTEE

AGENCY

Fiscal year 2001 level ......................................................................... $10,000,000

Fiscal year 2002 request .................................................................... 10,000,000

Committee recommendation .............................................................. 10,000,000

The Committee is providing $10,000,000 for an additional U.S.

payment to the World Bank’s Multilateral Investment Guarantee

Agency, the same level as the request and the 2001 enacted level.

(LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS)

Fiscal year 2001 level ......................................................................... ($50,000,000)

Fiscal year 2002 request .................................................................... (50,000,000)

Committee recommendation .............................................................. (50,000,000)

GENERAL CONCERNS ABOUT THE WORLD BANK GROUP

PRIVATE SECTOR STRATEGY

The Committee again commends the IDA–12 Deputies for recognizing the critical role undertaken by the private sector in developing countries. The entire World Bank Group should have a complementary and not competitive role with private sector investment

in developing countries. The Committee urges the Secretary of the

Treasury to work with the World Bank Group to develop a private

sector strategy that is consistent with its commitment to sustainable economic growth, including a social and environmental investment screen for World Bank Group lending that supports the private sector.

ENVIRONMENT AND ENERGY

The Committee is aware that there is ample private financing for

the energy sector in most developing countries, although inapproVerDate 11-MAY-2000 01:23 Jul 18, 2001 Jkt 073687 PO 00000 Frm 00071 Fmt 6659 Sfmt 6602 E:\HR\OC\HR142.XXX pfrm02 PsN: HR142
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priate forms of public control have acted as a significant investment barrier in some. It is also aware that over the past 25 years,

energy remains a valuable resource but is no longer scarce. Central

Asia and Africa are now recognized as important future alternatives to dependence on Middle East fossil fuel energy, and wind

power is becoming commercially viable in some regions. The Committee no longer anticipates a global energy shortage in the foreseeable future. However, where affordable and cleaner energy is

not available, job growth, poverty alleviation, and health improvement all come to an abrupt halt and often decline.

As the primary justification for using public money in the energy

and extractive sectors is to underpin economic development with

sound policy, both technical assistance through AID and financial

participation by the multilateral banks must focus on putting into

place new policies, laws, and regulations that would otherwise not

occur. These serve to insure that the income from valuable natural

resources benefits the population at large, not just a few officials

at the receiving end of the transaction. The involvement of AID,

OPIC or the World Bank can provide support for the efforts of

United States companies that seek to protect the environment and

corporate reputations in their dealings with foreign leaders who

demonstrate minimal concern for the welfare of their own citizens

or good governance.

OBJECTIVES

The Committee is concerned that with the many reform proposals for the World Bank over the years, few have resulted in

major changes to the Bank’s basic structure or function. The Committee believes the World Bank and other multilateral development

banks should have a clear set of objectives with the top priority to

raise the standard of living of people throughout the world. The

Committee supports the Treasury Department’s attempts to focus

the World Bank’s core objective to raising per capita income, and

the Committee urges the Administration to include basic education

in the scope of activities that fall under this purpose.

EDUCATION

The Committee understands that the World Bank is having difficulty fulfilling its pledge made at the April 2000, Education for

All Forum in Senegal to increase its education lending by 50 percent. The World Bank’s efforts to help developing countries attain

the goal of universal, free basic education by 2015 will be critical

if these countries are to meet this objective. The Committee urges

the Secretary of the Treasury to work with the World Bank to increase resource allocation, and to make the necessary adjustments

in its education lending program to ensure effective delivery of

loans. The Committee directs the Secretary of the Treasury to report on the progress of these efforts no later than 90 days after the

enactment of this Act.

ENVIRONMENTAL AND SOCIAL ASSESSMENT OF STRUCTURAL

ADJUSTMENT PROGRAMS

The Committee notes that more than three-eighths of the World

Bank’s portfolio supports structural adjustment. This type of lendVerDate 11-MAY-2000 01:23 Jul 18, 2001 Jkt 073687 PO 00000 Frm 00072 Fmt 6659 Sfmt 6602 E:\HR\OC\HR142.XXX pfrm02 PsN: HR142
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ing is exempt from the environmental assessment guidelines that

cover individual projects. An internal World Bank study concluded

that the Bank rarely considers the environmental and social impacts of these loans when they are in the design process. The Committee directs the Secretary of the Treasury and the U.S. Executive

Director at the World Bank to work with management to institute

a dynamic, participatory process to assess the environmental and

social impacts of structural adjustment loans.

CONTRIBUTION TO THE INTER-AMERICAN DEVELOPMENT BANK

GROUP

The Committee notes that again this year, there is no request for

additional purchases of ordinary or callable capital stock of the

Inter-American Development Bank or a request for the Bank’s

concessional window, the Fund for Special Operations, which is

now self-sustaining as a result of repayments of prior year loans.

Nonetheless, the Inter-American Development Bank expects to benefit from appropriations provided under the heading ‘‘Debt Restructuring’’ in title II for the purpose of repaying unsustainable loans

previously incurred by heavily indebted poor countries in the region.

INTER-AMERICAN INVESTMENT CORPORATION

Fiscal year 2001 level ......................................................................... $25,000,000

Fiscal year 2002 request .................................................................... 25,000,000

Committee recommendation .............................................................. 10,000,000

The Committee recommends an appropriation of $10,000,000 of

the scheduled annual United States purchase of share capital of

the Inter-American Investment Corporation. The recommendation

is $15,000,000 less than the request and the 2001 enacted level.

For the past 10 years, the Inter-American Investment Corporation has supported small and medium private enterprises in Latin

America and the Caribbean through strategic equity investments

and loans. The small and medium enterprise sector is the major

source of new jobs and economic growth in the region, but is generally overlooked by multilateral banks that focus on the public

sector and bilateral donor agencies that focus on microenterprise

credit.

MULTILATERAL INVESTMENT FUND

There is no request in the 2002 budget for an appropriation to

the Multilateral Investment Fund.

ASIAN DEVELOPMENT BANK GROUP

There is no request in the 2002 budget for paid-in or callable

capital stock of the Asian Development Bank.

CONTRIBUTION TO THE ASIAN DEVELOPMENT FUND

Fiscal year 2001 level ......................................................................... $72,000,000

Fiscal year 2002 request .................................................................... 103,017,000

Committee recommendation .............................................................. 103,017,000

The Committee recommends an appropriation of $103,017,000 for

the concessional Asian Development Fund, an amount that is

74

$31,017,000 above the amount provided in fiscal year 2001 and the

same as the amount requested.

CONTRIBUTION TO THE AFRICAN DEVELOPMENT BANK

Fiscal year 2001 level ......................................................................... $6,100,000

Fiscal year 2002 request .................................................................... 5,100,000

Committee recommendation .............................................................. 5,100,000

The Committee recommends an appropriation of $5,100,000 for the African Development Bank, an amount that is $1,000,000

below the amount provided in fiscal year 2001 and the same as the

amount requested.

(LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS)

Fiscal year 2001 level ......................................................................... ($97,548,522)

Fiscal year 2002 request .................................................................... (79,991,500)

Committee recommendation .............................................................. (79,991,500)

The African Development Bank expects to benefit from appropriations provided under the heading ‘‘Debt Restructuring’’ in title

II for the purpose of repaying unsustainable loans previously incurred by heavily indebted poor countries in the region.

CONTRIBUTION TO THE AFRICAN DEVELOPMENT FUND

Fiscal year 2001 level ......................................................................... $100,000,000

Fiscal year 2002 request .................................................................... 100,000,000

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

The recommendation for the soft loan African Development Fund is $100,000,000, the same as the amount requested and the same

as the amount provided in fiscal year 2001.

CONTRIBUTION TO THE EUROPEAN BANK FOR RECONSTRUCTION AND

DEVELOPMENT

Fiscal year 2001 level ......................................................................... $35,778,717

Fiscal year 2002 request .................................................................... 35,778,717

Committee recommendation .............................................................. 35,778,717

(LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS)

Fiscal year 2001 level ......................................................................... ($123,237,803)

Fiscal year 2002 request .................................................................... (123,237,803)

Committee recommendation .............................................................. (123,237,803)

The Committee is recommending $35,778,717 for the European

Bank for Reconstruction and Development. This amount is identical to the appropriation provided in fiscal year 2001 and the same

as the President’s request.

CONTRIBUTION TO THE INTERNATIONAL FUND FOR AGRICULTURAL

DEVELOPMENT

Fiscal year 2001 level ......................................................................... $5,000,000

Fiscal year 2002 request .................................................................... 20,000,000

Committee recommendation .............................................................. 20,000,000

The Committee is again providing a separate appropriation for

the International Fund for Agricultural Development, reflecting the

assumption of responsibility for this multilateral institution by the

Department of the Treasury in February, 2000. The fiscal year

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2002 recommendation is $20,000,000, the same as the request and

$15,000,000 above the amount provided in 2001.

INTERNATIONAL ORGANIZATIONS AND PROGRAMS

Fiscal year 2001 level ......................................................................... $186,000,000

Fiscal year 2002 request .................................................................... 186,000,000

Committee recommendation .............................................................. 196,000,000

The Committee has recommended $196,000,000 for International

Organizations and Programs. This is $10,000,000 more than the

fiscal year 2001 level and $10,000,000 more than the President’s

request. As in fiscal year 2001, funding for a grant to UNICEF is

provided in the ‘‘Child Survival and Disease Programs Fund’’ under

title II.

The Committee recommendation also continues prior year bill

language prohibiting the use of funds for the Korean Peninsula Energy Development Organization (KEDO) or the International Atomic Energy Agency (IAEA). Both organizations are funded under

‘‘Nonproliferation, Anti-Terrorism, Demining and Related Programs’’.

The Committee requires the Department of State to report back

to the Committee within 90 days and submit all United Nations

Fund For Population Activities (UNFPA) agreements that have

been signed with local, provincial and national governments of

China relating to administration of UNFPA programs in China.

UNITED NATIONS DEVELOPMENT PROGRAM

The Committee appreciates recent efforts of the United Nations

Development Programme (UNDP) to streamline its mission and to

focus primarily on enhancing governance, seeking out innovative

pilot programs, and forming strategic partnerships. The Committee

urges the UNDP to continue on this productive path, and recommends a level not less than $97,100,000 in International Organizations and Programs funding be set aside to support the UNDP.

UNITED NATIONS VOLUNTARY FUND FOR VICTIMS OF TORTURE

The Committee supports not less than $5,000,000 for the U.S.

contribution to the UN Voluntary Fund for Victims of Torture. Assisting these centers not only reinforces U.S. opposition to human

rights violations but has proven to be an effective method for lessening the incidence of torture and promotes human rights and democracy abroad. The Committee urges the Department of State to

negotiate with other governments to persuade them to increase

their contributions to the Fund.

TITLE V—GENERAL PROVISIONS

The Committee recommends that several of the general provisions carried in the fiscal year 2001 act be deleted. These provisions are either addressed elsewhere in permanent law, have been

considered by the appropriate authorizing committee, or are no

longer necessary.

The Committee recommends the following new and revised general provisions.

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Sec. 502, ‘‘Private and Voluntary Organizations’’ is a new general

provision that repeats language previously carried under that

heading in title II; the language prohibits funds for any United

States private and voluntary organization, except any cooperative

development organization, which obtains less than 20 percent of its

total annual funding for international activities from sources other

than the United States government, but allows the Administrator

of AID to waive this prohibition on a case-by-case basis after taking

into account various factors; it also specifies that funds appropriated under title II should be made available to private and voluntary organizations at a level at least equivalent to the fiscal year

1995 level.

Sec. 505, ‘‘Limitation on Representational Allowances’’ is modified by limiting representation expenses associated with funds

made available under ‘‘Foreign Military Financing Program’’ to

$150,000.

Sec. 508, ‘‘Military Coups’’ is modified to specify that resumption

of assistance to a country that was previously suspended as the result of an elected head of government being deposed by decree or

military coup may occur if the President determines that a democratically elected government has taken office or substantial

progress has been made towards the holding of elections; prior year

language limited the resumption of assistance to a determination

that a democratically elected government had taken office.

Sec. 511, ‘‘Availability of Funds’’ is modified to add funds appropriated to carry out section 23 of the Arms Export Control Act to

the list of funds that may remain available until for an extended

period of time if obligated before the expiration of their periods of

availability, and to limit the extended availability of funds obligated prior to the expiration of their availability to four years. The

final proviso of this section, requiring a specific report on balance

of payment and economic policy reform, is deleted.

Sec. 512, ‘‘Limitation on Assistance to Countries in Default’’, is

modified to allow for a waiver of the provisions of this section if the

President determines, following consultations with the Committees

on Appropriations, that assistance to a country otherwise prohibited from receiving funds is in the national interest of the United

States.

Sec. 515, ‘‘Notification Requirements’’ is modified by changing

the name of the account ‘‘Child Survival and Disease Programs

Fund’’ to ‘‘Child Survival and Health Programs Fund’’ consistent

with the modification to the name of the account made in title II.

Sec. 520, ‘‘Special Notification Requirements’’ is modified to delete Serbia, Ethiopia, and Eritrea.

Sec. 523, ‘‘Prohibition Against Indirect Funding to Certain Countries’’ is modified by replacing People’s Republic of China with

Sudan to make it consistent with section 507, ‘‘Prohibition Against

Direct Funding for Certain Countries’’.

Sec. 524, ‘‘Notification on Excess Defense Equipment’’ is modified

to limit the notifications of excess defense articles to those that are

significant military equipment or had an original acquisition cost

of $7,000,000 or more, of if the recipient country is subject to notification elsewhere in this Act.

Sec. 525, ‘‘Authorization Requirement’’ is modified to add the

Trade and Development Agency and the Peace Corps to the list of

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accounts that are exempted from the waiver of the authorization

requirement.

Sec. 526, ‘‘Democracy Programs’’ is modified by deleting language

authorizing grants for democracy activities in China, which are

now authorized in section 514(c) of Public Law 106–286; to allow

up to $3,000,000, rather than $2,000,000, for support of nongovernmental organizations located outside China to support activities

which preserve cultural traditions and promote sustainable development and environmental conservation in Tibetan communities in

that country; to delete a provision that amended a previous appropriations act; and to require a notification for certain activities in

China.

Sec. 532, ‘‘Authorities for the Peace Corps, Inter-American Foundation and African Development Foundation’’ is modified by removing subsection (b), which had exempted the International Fund for

Agricultural Development (IFAD) from limitations on the availability of funds appropriated under ‘‘International Organizations

and Programs’’; IFAD is now appropriated in title IV as a separate

account.

Sec. 533, ‘‘Impact on Jobs in the United States’’ is modified by

deleting subsection (b), which affected assistance to a foreign country for certain specified processing zones or designated areas.

Sec. 534, ‘‘Special Authorities’’ is modified to carry language that

had been carried in another provision to provide that section 576

of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1997, as amended, shall not apply to the

provision of assistance from international financial institutions to

the Federal Republic of Yugoslavia (the same language was carried

in section 594 of the fiscal year 2001 appropriations act); it is also

modified to provide that during fiscal year 2002, the President may

use up to $50,000,000 under the authority of section 451 of the Foreign Assistance Act, notwithstanding the funding ceiling in section

451(a).

Sec. 537, ‘‘Eligibility for Assistance’’ is modified to prohibit the

provisions of the section from applying to assistance to the government of a country that violates section 116 of the Foreign Assistance Act of 1961.

Sec. 538, ‘‘Earmarks’’ is modified by deleting references to base

rights countries.

Sec. 541, ‘‘Purchase of American-Made Equipment and Products’’

is modified by deleting subsections (b), (c), and (d).

Sec. 543, ‘‘Nongovernmental Organizations—Documentation’’ is

modified by changing the title and language in the provision from

‘‘private voluntary’’ to ‘‘nongovernmental’’.

Sec. 544, ‘‘Prohibition on Assistance to Foreign Governments that

Export Lethal Military Equipment to Countries Supporting International Terrorism’’ is modified by updating a reference to section

6(j) of the Export Administration Act.

Sec. 547, ‘‘War Crimes Tribunals Drawdown’’ is modified by removing a requirement for specified reports that were due during

fiscal year 2001.

Sec. 558, ‘‘Assistance for the Middle East’’ is modified by reducing the cap on Middle East spending from $5,241,150,000 to

$5,141,150,000.

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Sec. 560, ‘‘Cambodia’’ is modified to exempt assistance for basic

education from the funding limitation of the section.

Sec. 562, ‘‘Korean Peninsula Energy Development Organization’’ is modified by limiting funds for KEDO to $95,000,000 and providing for certain certification and reporting requirements.

Sec. 563, ‘‘PLO Compliance Report’’ is a new section.

Sec. 565, ‘‘Iraq’’ is modified by authorizing assistance under the ‘‘Economic Support Fund’’ for programs benefiting the Iraqi people

and to support efforts to bring about political transition in Iraq.

Sec. 568, ‘‘Indonesia’’ is modified to refer to Indonesian Ministry

of Defense or military personnel, rather than Indonesia, for the

purposes of applying this section to the possible provision of assistance for Indonesia.

Sec. 569, ‘‘Man and the Biosphere’’ is modified by removing the

reference to the World Heritage Fund.

Sec. 572, ‘‘Voluntary Separation Incentives’’ amends existing law

to provide authority for an additional year for the Agency for International Development to extend voluntary separation incentives to

certain employees.

Sec. 577, ‘‘Abolition of the Inter-American Foundation’’ is modified to extend the authorities of this section for an additional year.

Sec. 578, ‘‘War Criminals’’ is modified to provide that none of the

funds appropriated pursuant to this Act may be made available,

with the exception of humanitarian assistance and assistance for

democratization, to any country, entity, or municipality whose competent authorities have failed to take necessary and significant

steps to apprehend and transfer to the International Criminal Tribunal for the Former Yugoslavia all persons publicly indicted by

the Tribunal unless such authorities are (1) cooperating with the

Tribunal in specified ways and (2) taking steps that are consistent

with the Dayton Accords; in addition, a waiver provision is included to allow assistance if it is in the national interest of the

United States.

Sec. 580, ‘‘Basic Education for Pakistan’’ is modified to delete a

reference to chapter 1 of part 1 of the Foreign Assistance Act of

1961 and to delete a reference to notification requirements.

Sec. 581, ‘‘Heavily Indebted Poor Countries Trust Fund Authorization’’ is a new provision that amends section 801(b)(1) of the

Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2001, to increase the authorization level of the

aforementioned trust fund from $435,000,000 to $600,000,000, consistent with the funding recommendation in title II of this Act.

Sec. 582, ‘‘Funding for Serbia’’ is similar to section 594 of the fiscal year 2001 appropriations act, except that it does not specify a

funding ceiling for assistance for Serbia and does not contain subsection (e), which dealt with transition issues related to state liabilities, assets, and property.

Sec. 583, ‘‘Improving Global Health Through Safe Injections’’ is

a new general provision that directs the Agency for International

Development to develop and implement effective strategies to improve injection safety in its health programs, and to report to the

Congress not later than March 31, 2002, on its efforts in this regard.

Sec. 584, ‘‘El Salvador Reconstruction’’ is a new general provision

that provides that not less than $100,000,000 shall be made availVerDate 11-MAY-2000 01:23 Jul 18, 2001 Jkt 073687 PO 00000 Frm 00078 Fmt 6659 Sfmt 6602 E:\HR\OC\HR142.XXX pfrm02 PsN: HR142
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able during fiscal year 2002 for rehabilitation and reconstruction

assistance for El Salvador, of which not less than $65,000,000 shall

be derived from funds appropriated in this Act and not less than

$35,000,000 shall be derived from funds appropriated for fiscal year

1999 and prior years, from certain specified accounts.

PROVISIONS RETAINED FROM FISCAL YEAR 2001

The following general provisions from the fiscal year 2002 Act

are retained in the fiscal year 2001 Act unchanged except for technical corrections, references to fiscal year 2002, and new section

numbers where appropriate:

Sec. 501. Obligations During Last Month of Availability.

Sec. 503. Limitation on Residence Expenses.

Sec. 504. Limitation on Expenses.

Sec. 506. Prohibition on Financing Nuclear Goods.

Sec. 507. Prohibition Against Direct Funding of Certain Countries.

Sec. 509. Transfers Between Accounts.

Sec. 510. Deobligation/Reobligation Authority

Sec. 513. Commerce and Trade.

Sec. 514. Surplus Commodities.

Sec. 516. Limitation on Availability of Funds for International

Organizations and Programs.

Sec. 517. Independent States of the Former Soviet Union

Sec. 518. Prohibition on Funding for Abortions and Involuntary

Sterilization.

Sec. 519. Export Financing Transfer Authorities.

Sec. 521. Definition of Program, Project, and Activity.

Sec. 522. Child Survival and Disease Prevention Activities.

Sec. 527. Prohibition on Bilateral Assistance to Terrorist Countries.

Sec. 528. Debt-for-Development.

Sec. 529. Separate Accounts.

Sec. 530. Compensation for U.S. Executive Directors to International Financial Institutions.

Sec. 531. Compliance with United Nations Sanctions against

Iraq.

Sec. 535. Policy on Terminating the Arab League Boycott of

Israel and Normalizing Relations with Israel.

Sec. 536. Administration of Justice Activities.

Sec. 539. Ceilings and Earmarks.

Sec. 540. Prohibition on Publicity and Propaganda.

Sec. 542. Prohibition of Payments to United Nations Members.

Sec. 545. Withholding of Assistance for Parking Fines Owed by

Foreign Countries.

Sec. 546. Limitation on Assistance for the PLO for the West

Bank and Gaza.

Sec. 548. Landmines.

Sec. 549. Restrictions Concerning the Palestinian Authority.

Sec. 550. Prohibition of Payment of Certain Expenses.

Sec. 551. Special Debt Relief for the Poorest.

Sec. 552. Authority to Engage in Debt Buybacks or Sales.

Sec. 553. Restrictions on Voluntary Contributions to United Nations Agencies.

Sec. 554. Haiti Coast Guard.

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Sec. 555. Limitation on Assistance to the Palestinian Authority.

Sec. 556. Limitation on Assistance to Security Forces.

Sec. 557. Discrimination Against Minority Religious Faiths in the

Russian Federation.

Sec. 559. Enterprise Fund Restrictions.

Sec. 561. Foreign Military Financing Report.

Sec. 564. Prohibition on Assistance to the Palestinian Broadcasting Corporation.

Sec. 566. Kyoto Protocol.

Sec. 567. West Bank and Gaza Program.

Sec. 570. Taiwan Reporting Requirement.

Sec. 571. Restrictions on Assistance to Governments Destabilizing Sierra Leone.

Sec. 573. Contributions to United Nations Population Fund.

Sec. 574. American Churchwomen in El Salvador.

Sec. 575. Procurement and Financial Management Reform.

Sec. 576. Commercial Leasing of Defense Articles.

Sec. 579. User Fees.

HOUSE OF REPRESENTATIVES REPORT REQUIREMENTS

TRANSFER OF FUNDS

Pursuant to clause 3(f)(2) of rule XIII of the Rules of the House

of Representatives, the following is submitted describing the transfer of funds provided in the accompanying bill. Under ‘‘Development credit authority’’ up to $7,500,000 is authorized to be transferred to the account from a variety of sources.

RESCISSIONS

Clause 3(f)(2) of rule XIII of the Rules of the House of Representatives requires a separate listing of rescissions. There are no rescissions recommended in the accompanying bill.

CONSTITUTIONAL AUTHORITY

Clause 3(d)(1) of rule XIII of the Rules of the House of Representatives states that:

Each report of a committee on a bill or joint resolution of

a public character, shall include a statement citing the

specific powers granted to the Congress in the Constitution

to enact the law proposed by the bill or joint resolution.

The Committee on Appropriations bases its authority to report

this legislation from Clause 7 of Section 9 of Article I of the Constitution of the United States of America which states:

No money shall be drawn from the Treasury but in consequence of Appropriations made by law * * *

Appropriations contained in this Act are made pursuant to this

specific power granted by the Constitution.

CHANGES IN THE APPLICATION OF EXISTING LAW

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

Representatives, the following statements are submitted describing

the effects of provisions in the accompanying bill which directly or

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indirectly change the application of existing law. Most of the language has been provided in previous measures including

supplementals for the departments and agencies carried in the accompanying bill.

1. The bill contains appropriations for a number of items for

which authorizations for fiscal year 2002 have not yet been enacted. The bill allows funds appropriated in the bill to be obligated

in the absence of a prior authorization of appropriations.

2. The bill provides that a few of the appropriations shall remain

available for obligation beyond the current fiscal year. In all cases

it is deemed desirable to carry such language in order to provide

for orderly administration of such programs and effective use of

funds.

3. The bill contains a number of general provisions and other

language that have been carried in the bill in past years.

4. Under ‘‘Export-Import Bank of the United States’’, funds are

prohibited for the export of nuclear equipment, fuel, or technology

to any country other than a nuclear-weapon state as defined in Article IX of the Treaty on the Non-Proliferation of Nuclear Weapons

eligible to receive economic or military assistance that has detonated a nuclear explosive after the date of enactment.

5. Under ‘‘Overseas Private Investment Corporation’’, the Corporation is authorized to make expenditures, and it is stated that

administrative expenses shall not include project-specific costs and

other related costs. In addition, funds are authorized to be derived

by transfer from the noncredit account. Finally, funds are authorized for administrative expenses by transfer from the noncredit account.

6. Under ‘‘Child Survival and Health Programs Fund’’ the bill

contains provisions relating to abortion and family planning that

were carried in the fiscal year 2001 Act under ‘‘Development Assistance’’; other authorities for the use of the fund were contained

in the fiscal year 2001 Act and are consistent with the Foreign Assistance Act; in addition, funds may be made available for nonproject assistance only for ongoing health programs; in addition,

language is provided that indicates how the funds should be allocated among various activities, and up to $60,000,000 is authorized

to be made available for a contribution to The Vaccine Fund.

7. Under ‘‘Development Assistance’’, no funds may be made available for any activity which is in contravention to the Convention

on International Trade in Endangered Species of Flora and Fauna

(CITES); in addition, not to exceed $25,000, in addition to funds

otherwise available for such purposes, may be used to monitor and

provide oversight of programs for displaced and orphaned children

and victims of war; and a reference to section 131 of the Foreign

Assistance Act is inserted.

8. Under ‘‘International Disaster Assistance’’, funds are made

available for relief, rehabilitation and reconstruction assistance.

9. Under ‘‘Transition Initiatives’’ authority is provided to develop,

strengthen, or preserve democratic institutions and processes, revitalize basic infrastructure, and foster the peaceful resolution of conflict; in addition, the account requires a report at least 5 days prior

to beginning a program of assistance.

10. Under ‘‘Development Credit Authority’’, authority is provided

to guarantee up to 70 percent of the principal amount of any loans

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notwithstanding existing law; in addition, a separate account

‘‘Micro and Small Enterprise Development Program Account’’ is deleted.

11. Under ‘‘Economic Support Fund’’, funds are available as cash

grants to Israel and Egypt. Funds for Israel are made available

within 30 days of enactment or by October 31, 2001, whichever is

later. In addition, the cash grant to Egypt is provided with the understanding that significant economic reforms will be undertaken,

and the cash grant to Israel is provided with direction to the President that he ensure that the level of assistance does not cause an

adverse impact on the level of non-military exports from the United

States to such country and that Israel enter into a side letter

agreement equivalent to 1999.

12. Under ‘‘Debt Restructuring’’, funds are authorized for purposes consistent with existing law, except that funds appropriated

for concessional debt relief are authorized for ‘‘IDA-only’’ countries;

in addition, funds may be paid to the ‘‘Heavily Indebted Poor Countries Trust Fund’’ for the U.S. share of repayment of debt owed by

Bolivia and Mozambique; in addition, any international financial

institution in receipt of such U.S. contributions is required to notify

the Secretary of the Treasury that no new loans or credits will be

extended to such member country for a period of up to 24 months;

in addition, the Secretary of the Treasury is required to provide to

the Committees on Appropriations full documentation relating to

commitments by such countries to redirect resources to poverty alleviation or economic growth programs; and in addition, any limitation of subsection (e) of section 411 of the Agricultural Trade Development and Assistance Act of 1954 shall not apply to funds appropriated under this heading.

13. In title II, funds are appropriated for the administrative costs

of the Development Credit Authority, and such funds may be transferred to the operating expenses account of the Agency for International Development.

14. Under ‘‘Assistance for Eastern Europe and the Baltic States’’,

funds are made subject to section 529 of this Act.

15. Under ‘‘International Fund for Ireland’’, $25,000,000 is provided, which shall be expended at the minimum rate necessary to

make timely payment for projects and activities.

16. Under ‘‘Assistance to Eastern Europe and the Baltic States’’,

funds are provided notwithstanding any other provision of law for

economic assistance; funds are made available as if they were considered economic assistance under the Foreign Assistance Act;

funds for Bosnia are subject to certain conditions. Funds available

for an Enterprise Fund are authorized to be deposited in interestbearing accounts, and shall be expended at the minimum rate necessary to make timely payments for projects and activities; in addition, assistance for Kosovo is proposed to be limited to 15% of the

total pledges made by all donors as of March 31, 2002; in addition,

notwithstanding certain provisions of law, local currencies generated by, or converted from, funds appropriated by this Act and

by previous appropriations Acts for Bosnia may be made available

for purposes of the Foreign Assistance Act of 1961 and the Support

for East European Democracy (SEED) Act of 1989.

17. Under ‘‘Assistance for the Independent States of the Former

Soviet Union’’, the Committee has included a limitation on the

83

amount of assistance that may be made available for any one country in the region; it has also retained language concerning cooperation between Russia and Iran; in addition, exceptions are made to

the application of section 907 of the FREEDOM Support Act; funds

for the Government of Russia are subject to certain limitations; and

certain authorities are granted for the use of funds appropriated

for Enterprise Funds that were carried in the fiscal year 2001 Act;

in addition, no funds are available for the Government of the Russian Federation if the Secretary of State cannot certify that they

are in compliance with certain specified conditions.

18. Under ‘‘International Narcotics Control and Law Enforcement’’, anti-crime programs are subject to notification; in addition,

a new account is created using the authorities of section 481 of the

Foreign Assistance Act entitled ‘‘Andean Counterdrug Initiative’’, for which funds are appropriated solely to support counterdrug activities in the Andean region of South America and which are

available notwithstanding section 3204(b)(1)(B) of Public Law 106– 246 and notwithstanding section 482(b) of the Foreign Assistance

Act of 1961; in addition, in both accounts limitations of $16,600,000

and $14,240,000, respectively, are placed on administrative expenses.

19. Funding is provided for ‘‘Migration and Refugee Assistance’’, and a limitation of $15,000,000 is provided for administrative expenses, and a contribution to the headquarters expenses of the

International Committee of the Red Cross is made contingent on

Magen David Adom of Israel being given the opportunity to participate in the activities of the International Red Cross and Red Crescent Movement.

20. Under ‘‘United States Emergency Refugee and Migration Assistance Fund’’, funds are provided notwithstanding the limitations

contained in section 2(c)(2) of the Migration and Refugee Assistance Act of 1962.

21. Under ‘‘Nonproliferation, Anti-terrorism, Demining, and Related Programs’’, funds are made available to countries other than

the Independent States of the former Soviet Union and international organizations when it is in the national security interest

of the United States; funds are made available notwithstanding

any other provision of law; and the use of funds is made subject

to consultations with the Committees on Appropriations; funds are

authorized to be made available for the IAEA, KEDO, and the

CTBT Preparatory Commission, and funds are authorized for IAEA

only to the extent Israel is not being denied its right to participate

in the activities of that Agency.

22. Under ‘‘Debt Restructuring’’, funds are available for the cost

of selling, reducing, or canceling debt owed to the United States,

for modifying concessional debt agreements with least developed

countries.

23. Under ‘‘International Military Education and Training’’, the

IMET for Indonesia and Guatemala shall be only for expanded

military education and training and funds for Indonesia and Guatemala are subject to notification.

24. Under ‘‘Foreign Military Financing Program’’, the Committee

has provided that not less than $535,000,000 in FMF grants should

be available for the procurement in Israel of defense articles and

defense services.

84

25. Under ‘‘Foreign Military Financing Program’’, funds estimated to be outlayed for Egypt in fiscal year 2002, and funds appropriated for Israel, shall be disbursed within 30 days of enactment or by October 31, 2001, whichever is later; in addition, funds

are nonrepayable notwithstanding section 23 of the Arms Export

Control Act; in addition, certain authorities that were contained in

the fiscal year 2001 Act are continued in this Act.

26. Under ‘‘Peacekeeping Operations’’, funds are made available

subject to the regular notification procedures of the Committees on

Appropriations.

27. Under title IV, funds for a number of international financial

institutions are made available for contributions; funds are made

available for the United States share of the paid-in portion of the

increase in capital stock of certain institutions; and limitations are

placed on callable capital subscriptions.

28. Under ‘‘Contribution to the European Bank for Reconstruction and Development’’, the Committee has provided $35,778,717

for the purchase of stock during fiscal year 2001 and placed a limit

on callable capital.

29. Under ‘‘Contribution to the International Development Association’’, the Secretary of the Treasury is directed to seek an agreement that future assistance to member countries participating in

debt reduction through HIPC shall, to the extent allowed by IOA

policy and resources, be on a grant basis.

30. Under ‘‘International Organizations and Programs’’, the Committee has prohibited and conditioned the funding of certain organizations and programs.

31. Under ‘‘General Provisions’’:

Sec. 502, ‘‘Private and Voluntary Organizations’’ is a new general

provision that repeats language previously carried under that

heading in title II; the language prohibits funds for any United

States private and voluntary organization, except any cooperative

development organization, which obtains less than 20 percent of its

total annual funding for international activities from sources other

than the United States government, but allows the Administrator

of AID to waive this prohibition on a case-by-case basis after taking

into account various factors; it also specifies that funds appropriated under title II should be made available to private and voluntary organizations at a level at least equivalent to the fiscal year

1995 level.

Sec. 505, ‘‘Limitation on Representational Allowances’’ is modified by limiting representation expenses associated with funds

made available under ‘‘Foreign Military Financing Program’’ to

$150,000.

Sec. 508, ‘‘Military Coups’’ is modified to specify that resumption

of assistance to a country that was previously suspended as the result of an elected head of government being deposed by decree or

military coup may occur if the President determines that a democratically elected government has taken office or substantial

progress has been made towards the holding of elections.

Sec. 511, ‘‘Availability of Funds’’ is modified to add funds appropriated to carry out section 23 of the Arms Export Control Act to

the list of funds that may remain available until for an extended

period of time if obligated before the expiration of their periods of

85

availability, and to limit the extended availability of funds obligated prior to the expiration of their availability to four years.

Sec. 512, ‘‘Limitation on Assistance to Countries in Default’’, is

modified to allow for a waiver of the provisions of this section if the

President determines, following consultations with the Committees

on Appropriations, that assistance to a country otherwise prohibited from receiving funds is in the national interest of the United

States.

Sec. 515, ‘‘Notification Requirements’’ is modified by changing

the name of the account ‘‘Child Survival and Disease Programs

Fund’’ to ‘‘Child Survival and Health Programs Fund’’ consistent

with the modification to the name of the account made in title II.

Sec. 524, ‘‘Notification on Excess Defense Equipment’’ is modified

to limit the notifications of excess defense articles to those that are

significant military equipment or had an original acquisition cost

of $7,000,000 or more, of if the recipient country is subject to notification elsewhere in this Act.

Sec. 525, ‘‘Authorization Requirement’’ is modified to add the

Trade and Development Agency and the Peace Corps to the list of

accounts that are exempted from the waiver of the authorization

requirement.

Sec. 526, ‘‘Democracy Programs’’ is modified to allow up to $3,000,000, rather than $2,000,000, for support of nongovernmental

organizations located outside China to support activities which preserve cultural traditions and promote sustainable development and

environmental conservation in Tibetan communities in that country.

Sec. 534, ‘‘Special Authorities’’ is modified to carry language that

had been carried in another provision to provide that section 576

of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1997, as amended, shall not apply to the

provision of assistance from international financial institutions to

the Federal Republic of Yugoslavia (the same language was carried

in section 594 of the fiscal year 2001 appropriations act); it is also

modified to provide that during fiscal year 2002, the President may

use up to $50,000,000 under the authority of section 451 of the Foreign Assistance Act, notwithstanding the funding ceiling in section

451(a).

Sec. 537, ‘‘Eligibility for Assistance’’ is modified to prohibit the

provisions of the section from applying to assistance to the government of a country that violates section 116 of the Foreign Assistance Act of 1961.

Sec. 543, ‘‘Nongovernmental Organizations—Documentation’’ is

modified by changing the title and language in the provision from

‘‘private voluntary’’ to ‘‘nongovernmental’’.

Sec. 544, ‘‘Prohibition on Assistance to Foreign Governments that

Export Lethal Military Equipment to Countries Supporting International Terrorism’’ is modified by updating a reference to section

6(j) of the Export Administration Act.

Sec. 560, ‘‘Cambodia’’ is modified to exempt assistance for basic

education from the funding limitation of the section.

Sec. 562, ‘‘Korean Peninsula Energy Development Organization’’

is modified by limiting funds for KEDO to $95,000,000 and providing for certain certification and reporting requirements.

Sec. 563, ‘‘PLO Compliance Report’’ is a new section.

86

Sec. 565, ‘‘Iraq’’ is modified by authorizing assistance under the

‘‘Economic Support Fund’’ for programs benefiting the Iraqi people

and to support efforts to bring about political transition in Iraq.

Sec. 568, ‘‘Indonesia’’ is modified to refer to Indonesian Ministry

of Defense or military personnel for the purposes of applying this

section to the possible provision of assistance for Indonesia.

Sec. 572, ‘‘Voluntary Separation Incentives’’ amends existing law

to provide authority for an additional year for the Agency for International Development to extend voluntary separation incentives to

certain employees.

Sec. 577, ‘‘Abolition of the Inter-American Foundation’’ is modified to extend the authorities of this section for an additional year.

Sec. 578, ‘‘War Criminals’’ is modified to provide that none of the

funds appropriated pursuant to this Act may be made available,

with the exception of humanitarian assistance and assistance for

democratization, to any country, entity, or municipality whose competent authorities have failed to take necessary and significant

steps to apprehend and transfer to the International Criminal Tribunal for the Former Yugoslavia all persons publicly indicted by

the Tribunal unless such authorities are (1) cooperating with the

Tribunal in specified ways and (2) taking steps that are consistent

with the Dayton Accords; in addition, a waiver provision is included to allow assistance if it is in the national interest of the

United States.

Sec. 581, ‘‘Heavily Indebted Poor Countries Trust Fund Authorization’’ is a new provision that amends section 801(b)(1) of the

Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2001, to increase the authorization level of the

aforementioned trust fund from $435,000,000 to $600,000,000, consistent with the funding recommendation in title II of this Act.

Sec. 582, ‘‘Funding for Serbia’’ is similar to section 594 of the fiscal year 2001 appropriations act, except that it does not specify a

funding ceiling for assistance for Serbia and does not contain subsection (e), which dealt with transition issues related to state liabilities, assets, and property.

Sec. 583, ‘‘Improving Global Health Through Safe Injections’’ is

a new general provision that directs the Agency for International

Development to develop and implement effective strategies to improve injection safety in its health programs, and to report to the

Congress not later than March 31, 2002, on its efforts in this regard.

Sec. 584, ‘‘El Salvador Reconstruction’’ is a new general provision

that provides that not less than $100,000,000 shall be made available during fiscal year 2002 for rehabilitation and reconstruction

assistance for El Salvador, of which not less than $65,000,000 shall

be derived from funds appropriated in this Act and not less than

$35,000,000 shall be derived from funds appropriated for fiscal year

1999 and prior years, from certain specified accounts.

APPROPRIATIONS NOT AUTHORIZED BY LAW

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

of Representatives, the following table lists the appropriations in

the accompanying bill which, in whole or in part, are not authorized by law:

Last year authorized Authorization level Appropriations in last year of authorization Appropriations in this 

Export-Import Bank .................................... 2001 ....................................................... Such sums as may be necessary ......... $865,000,000 ......................................... $753,323,000Export-Import Bank administrative expenses. 2001 ....................................................... Such sums as may be necessary ......... $62,000,000 ........................................... $63,000,000

Child Survival and Health Programs Fund

(See note below).

Population (1987); Health and Disease

Prevention (1987); Child SurvivalFund (1987); HIV/AIDS (2002).

Population ($290,000,000); Health and

Disease Prevention ($180,000,000);Child Survival Fund ($75,000,000);HIV/AIDS ($300,000,000).

Population ($234,625,000); Health and

Disease Prevention ($166,762,500);Child Survival Fund ($75,000,000);HIV/AIDS ($474,000,000 in fy2002recommendation, of which$434,000,000 in this account).

$1,387,000,000 (includes $4

for population, of which$358,000,000 in this accoing for other programs, otHIV/AIDS, difficult to deteto changing definitions of since last authorized)

Development Assistance (See note below) Agriculture (1987); Education (1987);

Energy and selected developmentactivities (1987).

Agriculture ($760,000,000); Education

($180,000,000); Energy and selecteddevelopment activities($207,000,000).

Agriculture ($639,613,000); Education

($155,000,000); Energy and selecteddevelopment activities($149,990,000).

$1,098,000,000 (includes $1

for basic education, of wh$135,000,000 in this accoprograms difficult to deteto changing definitions of since last authorized)

International Disaster Assistance .............. 1987 ....................................................... $25,000,000 ........................................... $70,000,000 ........................................... $200,000,000Transition initiatives .................................. None (same authorities as international

disaster assistance).

................................................................ ................................................................ $40,000,000

Development credit authority ..................... None ....................................................... ................................................................ ................................................................ ($12,500,000)Development credit authority administrative expenses. None ....................................................... ................................................................ ................................................................ $7,500,000Payment to the Foreign Service Retirement

and Disability Fund.

None; mandatory item ........................... ................................................................ ................................................................ $44,880,000

Operating expenses of the United States

Agency for International Development.

1987 ....................................................... $387,000,000 ......................................... $340,600,000 ......................................... $549,000,000

Operating Expenses of the United States

Agency for International DevelopmentInspector General.

1987 ....................................................... $21,750,000 ........................................... $21,000,000 ........................................... $30,000,000

Economic Support Fund ............................. 1987 ....................................................... $3,800,000,000 ...................................... $3,555,000,000 ...................................... $2,199,000,000International Fund for Ireland ................... 1988 ....................................................... $35,000,000 ........................................... $35,000,000 ........................................... $25,000,000Assistance for Eastern Europe and the

Baltic States (See note below).

None ....................................................... ................................................................ ................................................................ $600,000,000

Assistance for the Independent States of

the Former Soviet Union.

1993 ....................................................... $410,000,000 ......................................... $417,000,000 ......................................... $768,000,000

Inter-American Foundation ......................... 1987 ....................................................... $11,969,000 ........................................... $11,800,000 ........................................... $12,000,000African Development Foundation ............... 1987 ....................................................... $3,872,000 ............................................. $6,500,000 ............................................. $16,042,000

Last year authorized Authorization level Appropriations in last year of authorization Appropriations in this 

International Narcotics Control and Law

Enforcement.

1994 ....................................................... $171,500,000 ......................................... $100,000,000 ......................................... $217,000,000

Andean Counterdrug Initiative ................... None ....................................................... ................................................................ ................................................................ $676,000,000Migration and Refugee Assistance ............ 2001 ....................................................... $750,000,000 ......................................... $700,000,000 ......................................... $715,000,000U.S. Emergency Refugee and Migration

Assistance Fund (See note below).

1962 ....................................................... Such amounts as may be necessary .... N/A ......................................................... $15,000,000

Nonproliferation, Anti-terrorism, demining

and related programs (See note below).

None ....................................................... ................................................................ ................................................................ $311,000,000

International Affairs Technical Assistance 1999 ....................................................... $5,000,000 ............................................. $1,500,000 ............................................. $6,000,000Debt restructuring ...................................... 2001 ....................................................... $435,000,000 ......................................... $448,000,000 (included up to

$435,000,000 for Heavily IndebtedPoor Countries (HIPC) debt relief;additional sums for unauthorized bilateral debt relief).

$224,000,000 (Note: section 

cludes additional authorizHIPC debt relief, consistenpropriations recommendataccount)

Peacekeeping operations ............................ 1999 ....................................................... $83,000,000 ........................................... $76,500,000 ........................................... $135,000,000Asian Development Fund ........................... 2001 ....................................................... $400,000,000 over four years (beginning in fy1998). $72,000,000 ........................................... $103,017,000

International Organizations and Programs 2001 ....................................................... Such sums as may be necessary ......... $186,000,000 ......................................... $196,000,000

Note. Programs recommended herein under ‘‘Child Survival and Health Programs Fund’’ and ‘‘Development Assistance’’ were last authorized under a different account structure than that recommended in this bill; the account 

cluded a number of functional accounts, as described above.

Note. Programs recommended herein under ‘‘Support for Eastern Europe and the Baltic States’’ were last authorized in the Support for East European Democracy (SEED) Act of 1989; however, these funds were authorized for 

grams and not for the account as a whole. In fiscal year 1991, the first general appropriations act after enactment of the SEED Act included $369,675,000 for this account.

Note. Funds for the United States Emergency Refugee and Migration Assistance Program (ERMA) are authorized in such amounts as may be necessary; however, appropriations which would result in a balance in the fund o

$100,000,000 are prohibited (22 U.S.C. 2601(c)) absent a waiver of this provision of law.

Note. Programs recommended herein under ‘‘Nonproliferation, Anti-terrorism, Demining, and Related Programs’’ include some major programs for which authorizations of appropriations were provided for fiscal year 2002; these 

clude $73,000,000 authorized for anti-terrorism assistance and $142,000,000 authorized for nonproliferation activities. In addition, some programs now in this account were previously in accounts which had authorizations of appprior years.

89

COMPARISON WITH BUDGET RESOLUTION

Clause 3(c)(2) of rule XIII of the Rules of the House of Representatives requires an explanation of compliance with section

308(a)(1)(A) of the Congressional Budget and Impoundment Control

Act of 1974 (Public Law 93–344), as amended, which requires that

the report accompanying a bill providing new budget authority contain a statement detailing how the authority compares with the reports submitted under section 302 of the Act for the most recently

agreed to concurrent resolution on the budget for the fiscal year

from the Committee’s section 302(a) allocation.

[In millions of dollars]

302(b) allocation— This bill—

Budget

authority Outlays Budgetauthority Outlays

Discretionary .................................................................................. 15,168 15,099 15,167 15,089

Mandatory ...................................................................................... 45 45 45 45

NOTE.—The outlays in this bill are technically in excess of the subcommittee section 302(b) suballocation. However, prior to floor consideration, the Committee intends to file a revised 302(b) suballocation that will eliminate the excess.

FIVE-YEAR OUTLAY PROJECTIONS

In compliance with section 308(a)(1)(B) of the Congressional

Budget and Impoundment Control Act of 1974 (Public Law 93– 344), as amended, the following table contains five-year projections

associated with the budget authority provided in the accompanying

bill:

Fiscal year 2002 .................................................................................. 5,563

Fiscal year 2003 .................................................................................. 4,838

Fiscal year 2004 .................................................................................. 2,481

Fiscal year 2005 .................................................................................. 980

Fiscal year 2006 .................................................................................. 1,137

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House

of Representatives, the following is a statement of general performance goals and objectives for which this measure authorizes funding:

The Committee on Appropriations considers program performance, including a program’s success in developing and attaining

outcome-related goals and objectives, in developing funding recommendations.

ASSISTANCE TO STATE AND LOCAL GOVERNMENTS

In accordance with section 308(a)(1)(C) of the Congressional

Budget and Impoundment Control Act of 1974 (Public Law 93–

344), as amended, the financing assistance to State and local governments is as follows:

The amounts recommended in the accompanying bill contain no

budget authority or budget outlays for State or local governments.

COMPLIANCE WITH RULE XIII, CL. 3(e) (RAMSEYER RULE)

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

House of Representatives, changes in existing law made by the bill,

as reported, are shown as follows (existing law proposed to be omitVerDate 11-MAY-2000 01:23 Jul 18, 2001 Jkt 073687 PO 00000 Frm 00089 Fmt 6659 Sfmt 6602 E:\HR\OC\HR142.XXX pfrm02 PsN: HR142
90

ted is enclosed in black brackets, new matter is printed in italic,

existing law in which no change is proposed is shown in roman):

FOREIGN OPERATIONS, EXPORT FINANCING, AND

RELATED PROGRAMS APPROPRIATIONS ACT, 1996

* * * * * * *

TITLE IV—MULTILATERAL ECONOMIC ASSISTANCE

* * * * * * *

INTERNATIONAL ORGANIZATIONS AND PROGRAMS

For necessary expenses to carry out the provisions of section 301

of the Foreign Assistance Act of 1961, and of section 2 of the

United Nations Environment Program Participation Act of 1973,

$285,000,000: Provided, That none of the funds appropriated under

this heading shall be made available for the United Nations Fund

for Science and Technology: Provided further, That funds appropriated under this heading may be made available for the International Atomic Energy Agency only if the Secretary of State determines (and so reports to the Congress) that Israel is not being denied its right to participate in the activities of that Agency: Provided further, That none of the funds appropriated under this heading that are made available to the United Nations Population Fund

(UNFPA) shall be made available for activities in the People’s Republic of China: Provided further, That not more than $30,000,000

of the funds appropriated under this heading may be made available to the UNFPA: Provided further, That not more than one-half

of this amount may be provided to UNFPA before March 1, 1996,

and that no later than February 15, 1996, the Secretary of State

shall submit a report to the Committees on Appropriations indicating the amount UNFPA is budgeting for the People’s Republic

of China in 1996: Provided further, That any amount UNFPA plans

to spend in the People’s Republic of China in 1996 above

$7,000,000, shall be deducted from the amount of funds provided

to UNFPA after March 1, 1996 pursuant to the previous provisos:

Provided further, That with respect to any funds appropriated

under this heading that are made available to UNFPA, UNFPA

shall be required to maintain such funds in a separate account and

not commingle them with any other funds: Provided further, That

funds may be made available to the Korean Peninsula Energy Development Organization (KEDO) for administrative expenses and

heavy fuel oil costs associated with the Agreed Framework: Provided further, That no funds may be provided for KEDO for funding for administrative expenses and heavy fuel oil costs beyond the

total amount included for KEDO in the fiscal year 1996 congressional presentation: Provided further, That no funds may be made

available under this Act to KEDO unless the President determines

and certifies in writing to the Committees on Appropriations that

(a) in accordance with section 1 of the Agreed Framework, KEDO

has designated a Republic of Korea company, corporation or entity

for the purpose of negotiating a prime contract to carry out construction of the light water reactors provided for in the Agreed

Framework; and (b) the Democratic People’s Republic of Korea is

maintaining the freeze on its nuclear facilities as required in the

91

Agreed Framework; and (c) the United States is taking steps to assure that progress is made on (1) the North-South dialogue, including efforts to reduce barriers to trade and investment, such as removing restrictions on travel, telecommunications services and financial transactions; and (2) implementation of the January 1,

1992, Joint Declaration on the Denuclearization of the Korean

Peninsulaø: Provided further, That a report on the specific efforts

with regard to subsections (a), (b) and (c) of the preceding proviso

shall be submitted by the President to the Committees on Appropriations six months after the date of enactment of this Act, and

every six months thereafter¿.

* * * * * * *

FOREIGN OPERATIONS, EXPORT FINANCING, AND

RELATED PROGRAMS APPROPRIATIONS ACT, 2000

* * * * * * *

TITLE V—GENERAL PROVISIONS

* * * * * * *

VOLUNTARY SEPARATION INCENTIVES FOR EMPLOYEES OF THE UNITED

STATES AGENCY FOR INTERNATIONAL DEVELOPMENT

SEC. 579. (a)***

* * * * * * *

(c) AUTHORITY TO PROVIDE VOLUNTARY SEPARATION INCENTIVE

PAYMENTS.—

(1) * * *

(2) AMOUNT AND TREATMENT OF PAYMENTS.—A voluntary

separation incentive payment under this section—

(A) * * *

* * * * * * *

(D) may not be made except in the case of any employee

who voluntarily separates (whether by retirement or resignation) on or before December 31, ø2001¿ 2002;

* * * * * * *

ABOLITION OF THE INTER-AMERICAN FOUNDATION

SEC. 586. (a)***

(b) ABOLITION OF INTER-AMERICAN FOUNDATION.—During fiscal

øyears 2000 and 2001¿ years 2000, 2001, and 2002, the President

is authorized to abolish the Inter-American Foundation. The provisions of this section shall only be effective upon the effective date

of the abolition of the Inter-American Foundation.

* * * * * * *

92

SECTION 801 OF THE FOREIGN OPERATIONS, EXPORT

FINANCING, AND RELATED PROGRAMS APPROPRIATIONS ACT, 2001

SEC. 801. DEBT RELIEF UNDER THE HEAVILY INDEBTED POOR COUNTRIES (HIPC) INITIATIVE.

(a) * * *

(b) CONTRIBUTIONS TO HIPC TRUST FUND.— (1) AUTHORIZATION OF APPROPRIATIONS FOR CONTRIBU- TIONS.—There is authorized to be appropriated for the period

beginning October 1, 2000, and ending September 30, 2003,

ø$435,000,000¿ $600,000,000 for purposes of United States

contributions to the Heavily Indebted Poor Countries (HIPC)

Trust Fund administered by the Bank.

* * * * * * *

93

FULL COMMITTEE VOTES

Pursuant to the provisions of clause 3(b) of rule XIII of the House

of Representatives, the results of each rollcall vote on an amendment or on the motion to report, together with the names of those

voting for and those voting against, are printed below:

ROLLCALL NO. 1

Date: July 10, 2001.

Measure: Foreign Operations, Export Financing, and Related

Programs Appropriations Bill, FY 2002.

Motion By: Ms. Pelosi.

Description of Motion: To reduce the amounts provided for the

Andean Counterdrug Initiative by $100,000,000 and to limit military aid to Colombia to a level of $65,000,000; and to increase the

amounts provided to the Child Survival and Disease Programs Account by $100,000,000 of which $70,000,000 is for other infectious

diseases and $30,000,000 is for child survival and maternal health.

Results: Rejected 22 yeas to 39 nays.

Members Voting Yea Members Voting Nay

Mr. Clyburn Mr. Aderholt

Ms. DeLauro Mr. Bonilla

Mr. Edwards Mr. Boyd

Mr. Fattah Mr. Callahan

Mr. Hinchey Mr. Cramer

Mr. Hoyer Mr. Cunningham

Mr. Jackson Mr. DeLay

Ms. Kaptur Mr. Doolittle

Mr. Kilpatrick Mr. Emerson

Mrs. Lowey Mr. Farr

Mrs. Meek Mr. Frelinghuysen

Mr. Moran Mr. Goode

Mr. Obey Ms. Granger

Mr. Olver Mr. Hobson

Mr. Pastor Mr. Istook

Ms. Pelosi Mr. Kennedy

Mr. Price Mr. Kingston

Ms. Roybal-Allard Mr. Knollenberg

Mr. Sabo Mr. Kolbe

Mr. Serrano Mr. LaHood

Mr. Visclosky Mr. Latham

Mr. Wicker Mr. Miller

Mr. Nethercutt

Mr. Northup

Mr. Peterson

Mr. Regula

Mr. Rogers

Mr. Rothman

Mr. Sherwood

Mr. Skeen

Mr. Sununu

Mr. Sweeney

Mr. Taylor

Mr. Tiahrt

Mr. Vitter

Mr. Walsh

Mr. Wamp

Mr. Wolf

Mr. Young

94

FULL COMMITTEE VOTES

Pursuant to the provisions of clause 3(b) of rule XIII of the House

of Representatives, the results of each rollcall vote on an amendment or on the motion to report, together with the names of those

voting for and those voting against, are printed below:

ROLLCALL NO. 2

Date: July 10, 2001.

Measure: Foreign Operations, Export Financing, and Related

Programs Appropriations Bill, FY 2002.

Motion By: Mr. Obey.

Description of Motion: To strike all funds provided for the Andean Counterdrug Initiative and to provide $676,000,000 for Substance Abuse and Mental Health Services at the Department of

Health and Human Services.

Results: Rejected 18 yeas to 43 nays.

Members Voting Yea Members Voting Nay

Mr. Clyburn Mr. Aderholt

Mr. Fattah Mr. Bonilla

Mr. Hinchey Mr. Boyd

Mr. Hoyer Mr. Callahan

Mr. Jackson Mr. Cramer

Ms. Kaptur Mr. Cunningham

Mr. Kilpatrick Ms. DeLauro

Mrs. Lowey Ms. DeLay

Mrs. Meek Mr. Doolittle

Mr. Obey Mr. Edwards

Mr. Olver Mrs. Emerson

Mr. Pastor Mr. Farr

Ms. Pelosi Mr. Frelinghuyen

Ms. Roybal-Allard Mr. Goode

Mr. Sabo Ms. Granger

Mr. Serrano Mr. Hobson

Mr. Visclosky Mr. Istook

Mr. Wicker Mr. Kennedy

Mr. Kingston

Mr. Knollenberg

Mr. Kolbe

Mr. LaHood

Mr. Latham

Mr. Miller

Mr. Moran

Mr. Nethercutt

Mrs. Northup

Mr. Peterson

Mr. Price

Mr. Regula

Mr. Rogers

Mr. Rothman

Mr. Sherwood

Mr. Skeen

Mr. Sununu

Mr. Sweeney

Mr. Taylor

Mr. Tiahrt

Mr. Vitter

Mr. Walsh

Mr. Wamp

Mr. Wolf

Mr. Young

96

97

98

99

100

101

102

103

(104)

ADDITIONAL VIEWS

In the recent past the initial 302(b) allocation for the Foreign Operations, Export Financing and Related Programs appropriations

bill has been significantly below the Administration’s request. Fortunately that pattern was broken this year with an allocation at

the request level. This enabled the Committee to produce a bipartisan bill which incorporates many of the initiatives important to

subcommittee members from both parties, and which funds most

programs at or above the Administration’s request level. While

funding for some programs is still below adequate levels, the bill

as a whole does give us the ability to respond to and confront ongoing development and security challenges around the world. In particular, the bill has increased significantly the amounts for child

survival, maternal health, HIV/AIDS, basic education and other infectious diseases.

Of fundamental disagreement, however, are the policies imposed

by the President on family planning programs. The bill provides

$425,000,000 for family planning programs, which is at the request

level, but 29% below the FY 1995 level of $541,600,000. The bill is

silent regarding the Mexico City policy, which was imposed by executive order in January of 2001. This policy violates universal

standards of medical ethics, forcing doctors to withhold critical

health information from their clients. It also requires overseas

NGOs to forfeit their right to free speech as a condition of receiving

United States family planning assistance. Similar requirements

would be unconstitutional if applied to United States-based organizations, and it is disingenuous to promulgate them abroad. I am

disappointed that language designed to repeal the Mexico City policy was not included in the bill.

Another area of concern is the continued imbalance in the implementation of Plan Colombia. During the debate on the initial funding of Plan Colombia last year, members were assured that the

‘‘push into southern Colombia’’ would include economic and alternative development programs in conjunction with the military assistance and training and aerial fumigation. There were also assurances that the bulk of funding for ‘‘Plan Colombia’’ would come in

the form of economic assistance and that our European allies would

participate.

Neither of these assurances has come to pass. A massive fumigation campaign commenced last December in southern Colombia before any alternative development programs were in place. By

March, 2001, not one grain of rice, nor one seed, had been delivered

to communities that had agreed to voluntary eradication. As of

today, fully a year after funds were made available, only two of the

29 communities that have signed alternative development pacts

have received any assistance. Meanwhile, military training and the

provision of equipment have proceeded rapidly, and all three of the

105

counter-narcotics battalions have been trained. The impact of our

‘‘push into southern Colombia’’ thus far has been further disruption

and disillusionment of the population on the prospects for an end

to the conflict. Aerial fumigation should cease until programs designed to give communities the opportunity to voluntarily eradicate

coca are operating effectively.

Unfortunately, the billions in additional economic assistance for

Colombia have not materialized. Our European allies have chosen

not to participate in a significant way in Plan Colombia. It is therefore time to slow the pace of the military assistance while a workable economic assistance plan is developed with the support of our

allies and people in Colombia most affected by the drug war.

With respect to the assistance to help El Salvador recover from

two devastating earthquakes, the bill does include a designation of

$100,000,000 from within existing and prior year resources for recovery. However, this is far from adequate given the fact that

175,000 homes were destroyed, leaving over one million people

homeless, and that over one-third of the nation’s schools were destroyed along with numerous hospitals, roads and other infrastructure.

While the assistance designated in the bill is appreciated, the

Administration has disappointed many by refusing to submit a request for additional resources to meet urgent needs. Unfortunately,

many of our allies followed our miserly lead at the recent donor

conference. The tragic result will be that El Salvador will need to

incur significant debt to finance its recovery. This tragedy occurred

just as the economy of that country was showing signs of permanent recovery from the civil war. Given the nature of our involvement in El Salvador’s internal affairs, not to mention the investment of over $6 billion in U.S. assistance, it is astonishing that the

new administration has not been more forthcoming.

NITA M. LOWEY.

Æ