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[Senate Prints 112-46]
[From the U.S. Government Publishing Office]

112th Congress }                                             {  S. Prt.
 2d Session    }            COMMITTEE PRINT                  {  112-46
_______________________________________________________________________

 
                      THE NUNN-LUGAR CTR PROGRAM'S
                      ROLE IN THE ADMINISTRATION'S
                ASIA-PACIFIC ``REBALANCING'' INITIATIVE

                               __________

                        A MINORITY STAFF REPORT

                      PREPARED FOR THE USE OF THE

                     COMMITTEE ON FOREIGN RELATIONS

                          UNITED STATES SENATE

                      One Hundred Twelfth Congress

                             Second Session

                           December 17, 2012

                                     

                                _____

                  U.S. GOVERNMENT PRINTING OFFICE

77-807 PDF                WASHINGTON : 2012
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                COMMITTEE ON FOREIGN RELATIONS          

            JOHN F. KERRY, Massachusetts, Chairman          
BARBARA BOXER, California            RICHARD G. LUGAR, Indiana
ROBERT MENENDEZ, New Jersey          BOB CORKER, Tennessee
BENJAMIN L. CARDIN, Maryland         JAMES E. RISCH, Idaho
ROBERT P. CASEY, Jr., Pennsylvania   MARCO RUBIO, Florida
JIM WEBB, Virginia                   JAMES M. INHOFE, Oklahoma
JEANNE SHAHEEN, New Hampshire        JIM DeMINT, South Carolina
CHRISTOPHER A. COONS, Delaware       JOHNNY ISAKSON, Georgia
RICHARD J. DURBIN, Illinois          JOHN BARRASSO, Wyoming
TOM UDALL, New Mexico                MIKE LEE, Utah
              William C. Danvers, Staff Director          
       Kenneth A. Myers, Jr., Republican Staff Director          

                             (ii)          

                            C O N T E N T S

                              ----------                              
                                                                   Page
  Letter of Transmittal..........................................     v
  Introduction...................................................     1
  Findings.......................................................     1
  Setting the Stage for Concern..................................     1
  Country Overview--Thailand.....................................     2
    Nunn-Lugar CTR Cooperation in Thailand.......................     3
    On the U.S. Side.............................................     4
  Country Overview--Philippines..................................     4
    Nunn-Lugar CTR Cooperation in the Philippines................     5
    On the U.S. Side.............................................     5
  Country Overview--Indonesia....................................     5
    Nunn-Lugar CTR Cooperation in Indonesia......................     6
    On the U.S. Side.............................................     6
  The ``Pivot'' is . . . Intentionally Ambiguous.................     6
  Recommendations................................................     8

                                 (iii)

                         LETTER OF TRANSMITTAL

                              ----------                              

                              United States Senate,
                            Committee on Foreign Relations,
                                 Washington, DC, December 17, 2012.
    Dear Colleagues: During the October recess I led a 
Congressional delegation to Southeast Asia where I met with 
officials in Indonesia, the Philippines, and Thailand, to 
encourage continued expansion in our bilateral relationships of 
the Nunn-Lugar Cooperative Threat Reduction Program (CTR) as 
part of the renewed strategic emphasis by the United States on 
relations with the countries of the region.
    In recent remarks at the Cooperative Threat Reduction 
Symposium held at the National Defense University in early 
December 2012, Deputy Secretary of Defense Ash Carter outlined 
three points of evolution of the Nunn-Lugar CTR program, each 
of which holds relevance and application to the U.S. 
``rebalancing'' strategy toward Southeast Asia. Secretary 
Carter stated:

          The first [point of evolution] is the geographic 
        expansion of the Nunn-Lugar program. The disaggregation 
        and increasing sophistication of terrorist 
        organizations, coupled with leaps in technology that 
        reduce the barriers to WMD acquisition, has required 
        the U.S. and our partners to increase the global reach 
        of the program beyond the former Soviet Union to close 
        to 80 countries in all.
          Second, the CTR program has increased its emphasis on 
        countering the threat of biological and chemical 
        weapons. Countering these threats was always part of 
        the Nunn-Lugar program, but scientific and 
        technological advancements have made these weapons more 
        dangerous and more widespread.
          And the third is to keep the most dangerous pathogens 
        on Earth consolidated and secured in the minimum number 
        of well-guarded facilities.

    Southeast Asia represents a major intersection of global 
trade and commerce by water and air. The ten countries 
comprising the Association of Southeast Nations (ASEAN) 
represent the fourth largest export market for the United 
States. By the same token, North Korea maintains an intricate 
network of global trading companies which are active in this 
Southeast Asian nexus of trade and commerce exchange. These 
companies also serve as available vehicles for promoting North 
Korean WMD proliferation activities.
    A separate but related threat in the region is composed of 
smugglers who engage in the more traditional illegal activities 
but also are available to facilitate the movement of WMD and 
associated materials. And then there are the cells or groups of 
terrorist organizations operating in the region.

                                  (v)

    Congressional delegation meetings with U.S. embassy and 
foreign officials in Southeast Asia also provided an 
opportunity to discuss the Obama administration's ``pivot'' or 
``rebalancing'' strategy toward the Asia-Pacific region, the 
details of which remain sketchy in many respects. As the 
administration keys on the means by which to implement its 
rebalancing approach to Southeast Asia, it is important that 
the Nunn-Lugar CTR program be singled out as a priority policy 
tool. But while officials in Indonesia, the Philippines, and 
Thailand expressed their commitment to the objectives of the 
Nunn-Lugar CTR program, the level of coordination with its 
projects is limited by the degree of interaction with CTR 
officials permitted by U.S. embassies.
    I trust that you will find the additional details in the 
attached report of interest.
            Sincerely,
                                          Richard G. Lugar,
                                                    Ranking Member.
                      THE NUNN-LUGAR CTR PROGRAM'S

                      ROLE IN THE ADMINISTRATION'S

                ASIA-PACIFIC ``REBALANCING'' INITIATIVE

                              Introduction

    U.S. Senate Foreign Relations Committee Ranking Member Dick 
Lugar travelled to Indonesia, the Philippines, and Thailand to 
encourage continued global expansion of the Nunn-Lugar 
Cooperative Threat Reduction (CTR) program.
    In discussions with Southeast Asia officials, the Senator 
stated that cooperation is essential to identify and to 
interdict the possible flow of weapons of mass destruction 
throughout the region. In meetings Lugar emphasized, ``Sources 
of nuclear, chemical or biological weapons or precursor 
materials could be states or rogue terrorist elements. 
Southeast Asia is a major intersection of global trade and 
commerce by water and air. U.S. strategic economic and foreign 
policy needs to become more robust in the Asia-Pacific region 
and Nunn-Lugar Global Cooperative Threat Reduction will be an 
important tool for our diplomatic and military leaders as we 
seek a more integrated approach to the region.''

                                Findings

   Officials of Indonesia, the Philippines and Thailand agree 
        with the importance of the Nunn-Lugar CTR program.

   Implementation of the Nunn-Lugar CTR program is at varying 
        levels within the three countries.

   U.S. officials in Indonesia, the Philippines, and Thailand 
        are committed to the objectives of the Nunn-Lugar CTR 
        program. The level of coordination and implementation 
        varies within each U.S. Embassy.

   Officials have concern about freedom of navigation of the 
        seas throughout the region.

   Officials welcome plans by the Obama administration to 
        rebalance U.S. resources and assets, including military 
        and security, toward East Asia. However, a sense of         uncertainty lingers over the reliability of the U.S. to 
        sustain the ``pivot.''

   Officials throughout the three countries are uncertain as 
        to the full implications of the pivot or rebalance of 
        U.S. assets for their respective countries. While the 
        pivot is favorably viewed as a symbolic gesture, 
        questions remain in terms of details and 
        sustainability.

                     Setting the Stage for Concern

    The ten countries comprising the Association of Southeast 
Asian Nations (ASEAN)--Brunei, Burma-Myanmar, Cambodia, 
Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, 
and Vietnam--represent a population of 600 million. ASEAN is 
the fourth largest export market for the United States. The 
Straits of Malacca is a virtual super-highway of global ocean 
commerce.
    In addition to serving as an intersection of massive trade 
and commerce exchange, ASEAN's neighbor to the north, North 
Korea, maintains an intricate global and regional network of 
trading companies. Although largely serving as an acquisition 
mechanism for North Korea's military infrastructure, the North 
Korean trading company web poses as a potential means of 
proliferation. While considerable focus has been placed on 
North Korea's nuclear program, the country also maintains a 
chemical and biological infrastructure. In recent years, North 
Korean officials attempted to access the biological research 
program of at least one country within ASEAN.
    A separate threat within Southeast Asia is found among 
smugglers, such as those on the Malaysia-Thailand border who 
emphasize profit, whether that be smuggling humans for labor or 
sex, moving drugs, or any other ``commodity'' deemed to have 
commercial value. The business maxim ``the greater the risk the 
greater the financial reward,'' is not lost on Southeast Asia 
smugglers, potential conveyors of WMD or related materials.
     Not to be forgotten are the cells or groups of terrorist 
organizations operating out of Indonesia, the Philippines, 
Thailand, or elsewhere in the region.
    In addition to the hub of Southeast Asia serving as a 
potential nexus for the transport of WMD and related materials, 
the interconnectivity of the region makes the spread of 
infectious disease a major threat to the region. The detection, 
diagnostics, and response to infectious diseases all have 
significant similarities to a deliberate biological threat and 
therefore fall within the scope of countering WMD.

                       Country Overview--Thailand

    2013 will mark the 180th anniversary of Thailand-U.S. 
relations. The enduring bilateral civilian and military 
relationship has covered a plethora of topics and issues from 
its inception. In writing to U.S. President Buchanan (or his 
successor) in 1861, King Mongkut offered to send elephants to 
the United States so that American citizens would be able to 
use them as ``beasts of burden making them benefit to the 
country.'' President Lincoln, occupier of the White House when 
the King's letter was received, graciously declined the offer.
    The contemporary Thailand-U.S. relationship is buttressed 
by the 1833 Treaty of Amity and Commerce between Siam and the 
United States (the latest iteration being the 1966 Treaty of 
Amity and Economic Relations). Both countries are among the 
signatories of the 1954 Manila Pact for the former Southeast 
Asia Treaty Organization (SEATO). While SEATO was dissolved in 
1977, the Manila Pact remains in force and along with the 
Thanat-Rusk communique of 1962, constitutes the basis of U.S. 
security commitments to Thailand. The United States designated 
Thailand as a Major Non-Nato Ally in 2003.\1\
    Thailand has been an essential partner of the United States 
in times of peace and of war. However, with China's re-
emergence throughout Southeast Asia and on a global basis, 
Thailand undergoes continual calibration of its relationship 
with China and separately with the United States. As one Thai 
official confided to Senator Lugar, Thailand is a small country 
caught between two elephants. Translation--Thailand will 
attempt to balance its relationships with China and the United 
States in the future which over the long-term may result in a 
diminishment of the strength of its military relationship with 
the United States.
    Presently, the bilateral relationship is robust on the 
economic and security fronts. More than 700 U.S. companies will 
have a combined investment of US $40 billion in Thailand by the 
end of 2012 and 65 percent of those companies plan to expand 
their investments in Thailand.\2\
    The Thailand-U.S. military relationship has been active and 
long-standing. Notably, Thailand sent troops to participate 
with U.N. forces during the Korean War and has been an active 
military partner of the United States since that time. Thailand 
has received U.S. military equipment, essential supplies, 
training, and assistance in the construction and improvement of 
facilities and installation since 1950. Also, as a part of 
their mutual defense cooperation, both countries have developed 
a vigorous annual joint military exercise program which 
averages 40 joint exercises per year and engages all the 
military services of each nation.\3\
    Senator Lugar's visit to Thailand included meetings with 
Foreign Minister Surapong Tovichakchaikul, Defense Minister 
Sukumpol Suwanatat, and senior representatives from the Thai 
National Security Council (NSC).
    He noted deep concern with all Thai officials over chemical 
and biological threats, such as ensuring security for 
laboratories and other areas that might store dangerous 
pathogens. Thai officials took note of Senator Lugar's work 
countering proliferation and WMD threats, and offered 
Thailand's support for his global efforts. The Senator asked 
Thai officials how the U.S. government could bolster Thai 
capacity to counter security threats. Defense Minister Sukumpol 
credited U.S. military training, such as through International 
Military Education and Training (IMET), as well as defense 
material through the Excess Defense Articles (EDA) program as 
playing a major role in bolstering Thai capacity. NSC officials 
requested continued U.S. assistance developing Thailand's 
export controls, and countering narcotics and human 
trafficking, as well as on financial crimes.
Nunn-Lugar CTR Cooperation in Thailand
    Thailand is a key partner of the United States in efforts 
to counter biological threats and avert chemical, biological, 
radiological, and nuclear (CBRN) disasters. The Nunn Lugar 
(CTR) Cooperative Bioengagement Program (CBEP) utilizes U.S. 
government relationships with the Armed Forces Research 
Institute of Medical Sciences (AFRIMS), the Centers for Disease 
Control and Prevention, and the U.S. Department of Agriculture 
to partner with Thailand on biosurveillance, biorisk 
management, and infectious disease research.
    The Consequence Management Assistance Program (CMAP) 
supports the Thai government in improving military and first 
responder CBRN disaster preparedness through training, 
workshops, and consultation. Initial projects have included 
high-level bilateral discussions and tabletop exercises with 
Thai officials.
    Thailand is a key international trade hub and is home to 
one of the top 50 ports in the world in terms of container 
traffic. Nunn Lugar CTR Programs and DTRA/SCC-WMD are prepared 
to support future requests for assistance by the Thai 
government. DTRA has observed, participated and administered 
CBRN incident response exercises at Thailand port facilities 
for a couple of years.
On the U.S. Side
    U.S. Ambassador Chris Kenney pledged to ensure effective 
coordination among U.S. government agencies so as to partner 
with Thailand toward the effective implementation of the Nunn 
Lugar CTR program.

                     Country Overview--Philippines

    Because of his role as the head of a U.S. observer team 
sent by President Ronald Reagan to monitor the 1986 election, 
Senator Lugar maintains a special relationship with the 
Filipino people and with President Benigno Aquino. The 
Scarborough Reef incident between the Philippines and China was 
very much on the minds of Filipino leaders during Senator 
Lugar's visit.
    The United States recognized the Philippines as an 
independent state beginning in 1946. The two countries have 
maintained an active and strong relationship from that time. 
U.S.-Philippines relations are based on strong historical and 
cultural links and a commitment to human rights and democracy. 
The security ties are close between the two countries and the 
Philippines has been designated as a Major Non-Nato Ally to the 
U.S. The U.S.-Philippines Mutual Defense Treaty which is the 
basis for the security relationship was reaffirmed in 2011 by 
``The Manila Declaration.''
    Strengthening our security alliance is one of our key 
objectives with the Philippines. Emphasis is being placed on 
reaching agreement on the increased rotational presence of U.S. 
forces and opportunities for more joint exercises in the 
Philippines while concurrently assisting with the build-up of 
the Philippines' external defense.
    In recent weeks, President Aquino announced agreement 
between the government of the Philippines and the Moro Islamic 
Liberation Front (MILF) to end a 40-year insurgency which has 
killed as many as 200,000 people and discouraged investors from 
the mineral-rich area in Mindanao. If the framework agreement 
endures, military resources committed to Mindanao will be 
available for other assignments.\4\ At the present time, the 
improved security situation in Mindanao has allowed the 
Philippine government to modify the Armed Forces of the 
Philippines (AFP) from internal security of the country to 
national defense. This is especially significant given the 
crisis in the South China Sea where a confrontation commenced 
in mid-April. Philippine ships sought to stop Chinese fishermen 
from harvesting coral and protected marine species at the reef, 
claimed by both the Philippines and China. Even though 
Philippine ships withdrew from the area, Chinese ships have 
maintained a continual presence creating an ongoing point of 
irritation with the Philippines.
    Philippine defense modernization efforts and attention to 
external threats have increased the government's openness to 
greater security engagement with the United States. The Aquino 
administration sees the U.S.-Philippine alliance as providing a 
defense against potential external threats. Maritime security, 
domain awareness, and humanitarian assistance/disaster relief 
are key areas of potential cooperation between the two 
countries. There may be an increase in the level of U.S. forces 
visiting the Philippines for training and exercises.
Nunn-Lugar CTR Cooperation in the Philippines

   The Nunn-Lugar CTR program is partnering with the 
        Philippines to develop a maritime domain awareness 
        project in the country in 2013.

   U.S. officials are also partnering with the Philippines to 
        develop their National Coast Watch System and Center.

   The Nunn-Lugar CTR program is working with Philippines' 
        officials to increase biosafety, biosurveillance, and 
        health security capabilities in its public and 
        veterinary health sectors.

   The Nunn-Lugar CTR program is developing a partnership with 
        the Philippines to provide consequence management 
        awareness seminars and workshops.
On the U.S. Side
    From the U.S. perspective, Ambassador Harry Thomas oversees 
active and integrated cooperation with the Philippines on the 
Nunn-Lugar front.

                      Country Overview--Indonesia

    The United States established relations with Indonesia in 
1949. The U.S.-Indonesia Comprehensive Partnership of 2010 has 
fostered consistent high level engagement on issues related to 
strengthening education and security ties, improving 
governance, improving trade and investment, cooperating on 
health, partnering on international issues, and supporting 
environment sustainability.
    The military-to-military partnership is robust, and there 
is cooperation on law enforcement and counter-terrorism 
capacity building. The U.S.-Indonesia military relationship has 
been impacted by past human rights abuses among the ranks of 
security forces. While Indonesian officials are making progress 
on the human rights area progress has been uneven toward 
holding lower-ranking soldiers responsible.
    The U.S. focuses engagement efforts with the Indonesian 
military (TNI) in four distinct mutually agreed upon areas to 
include: Professionalization/Reform/Modernization; Maritime 
Security; Peacekeeping Operations; and Humanitarian Assistance/
Disaster Response.
    Indonesia's location makes it pivotal to counter 
transnational threats including terrorism, piracy, 
proliferation, trafficking in persons, and infectious diseases.
    U.S. officials were complimentary of bilateral cooperation 
on the front of identifying and interdicting WMD and related 
materials. In addition to the active interaction with the 
Indonesian military, the U.S. stands ready to assist 
appropriate Indonesian governmental departments and agencies 
toward creating capability to address potential infectious 
disease and other biological-related threats to the population. 
The Nunn-Lugar (CTR) Cooperative Bioengagement Program (CBEP) 
is among the U.S. Government programs available to support both 
civilian and military ministries in improving biosecurity and 
biosafety.
Nunn-Lugar CTR Cooperation in Indonesia
   Like Thailand and the Philippines, Indonesia is an active 
        partner with the United States in efforts to enhance 
        the capability to prevent, deter, and interdict illicit 
        trafficking in WMD and related materials and 
        technology. Indonesia is adopting the Incident Command 
        System (ICS) method of response used by the U.S. 
        government.
On the U.S. Side
    U.S. Ambassador Scot Marciel reaffirmed his commitment of 
encouraging interagency cooperation toward the implementation 
of Nunn-Lugar CTR goals and objectives so as to partner with 
Indonesia to identify and to interdict WMD and related 
materials.

             The ``Pivot'' is . . . Intentionally Ambiguous

    Officials of the three countries visited expressed 
satisfaction and appreciation for the Obama administration's 
announced ``pivot'' or rebalancing of assets toward Asia. 
However, full details of the pivot application for each country 
were unclear.
    When the pivot was announced in the fall of 2011, 
administration officials sought to connect with the Asian 
mindset which places a premium on symbolism. The United States 
announced it will be giving more attention to the region--a 
gesture deeply appreciated by officials of many countries.
    However, translating the meaning and application of the 
pivot to any given country has proven to be a challenge, as 
foreign officials have received few authoritative explanations.
    One U.S. official in the region sought to articulate the 
concept of the pivot--a reallocation of focus and resources 
with greater emphasis on economic, security, and other 
relations. However, none of the U.S. Embassies have received a 
concise, detailed outline of the pivot's definition, cost, or 
implementation specifics. Nor does it appear that the input of 
U.S. officials in the region has been solicited in any active 
or systematic way.
    Commenting on Defense Secretary Panetta's mid-November trip 
to Cambodia, Australia, and Thailand, a Department of Defense 
(DOD) spokesman referred to the pivot (again), in general 
terms:

          ``The United States is inextricably tied to the 
        region . . . and the whole point of the rebalance is to 
        keep doing what we have been doing.'' \5\
          ``The rebalance is part of a process, . . . We are 
        playing the long game here.'' ``This is something 
        that's going to take years to do, but it doesn't take 
        away from the fact that . . . we're off to a fast 
        start.'' \6\

    In his remarks at CSIS in Washington prior to President 
Obama's November trip to Southeast Asia, National Security 
Advisor Tom Donilon outlined the President's rebalancing toward 
Asia in general terms:

          ``The President . . . made a critical decision . . . 
        at the very outset of the administration to increase 
        our focus on the Asia Pacific, in terms of resources; 
        diplomatic activity and engagement, both with nations 
        and with regional institutions; and in terms of 
        policy.''
          ``He laid out our vision in Canberra last year. In 
        short, our overarching objective is to sustain a stable 
        security environment and a regional order rooted in 
        economic openness, peaceful resolution of disputes, 
        democratic governance, and political freedom.''
          ``The rebalancing of our posture toward the Asia 
        Pacific harnesses every element of our national 
        power.''
          `` . . . our rebalancing . . . is defined by far more 
        than defense posture. It will continue to be defined by 
        deeper economic and political engagement. That includes 
        standing up for the freedom and dignity of the people 
        of the region.''

    While administration officials may have been determined 
that there is a strong case to be made for not disclosing their 
pivot cards, there are high risks associated with such a 
stance. Many officials in Southeast Asian countries are not 
fully convinced as to the pivot's meaning or durability; they 
lack details over the longer term. On the other hand, the 
notion that additional specifics on the pivot or rebalancing 
exercise will lessen or dampen any incentives on the part of 
Southeast Asian leaders to ``normalize'' relations with the 
current Chinese leadership is equally suspect. With China's 
reemergence as a major actor in Southeast Asia, regional 
leaders will strive to engage with China in ways that will 
maintain national sovereignty and freedom of navigation of the 
seas. While they welcome the express commitment by the United 
States to apply greater resources and an enhanced presence, 
including military, to the region, a ``balance'' as defined by 
each country's leadership, will be sought. The pivot will 
suffer as an integrating factor if it is ever perceived to be a 
catalyst for Chinese interference or intrusion into the 
territory or affairs of a neighboring sovereign country.
    Congressional delegation meetings with U.S. and foreign 
officials in Southeast Asia did little to contradict some of 
the concerns raised by a CSIS Study Group over the 
administration's rebalancing or pivot efforts: ``We found no 
durable operational framework guiding the specific efforts 
toward that goal, and without that framework, we found many 
discontinuities.'' The CSIS study opined:

          ``The project team concluded that DoD has not 
        adequately articulated the strategy behind its force 
        posture planning nor aligned the strategy with 
        resources in a way that reflects current budget 
        realities. DoD needs to explain the purposes of force 
        posture adjustments in light of the new security 
        challenges in the Asian Pacific region.''

                            Recommendations

   To instill confidence among Southeast Asian leaders and 
        extend more credibility to the pivot or rebalance 
        toward Asia, U.S. administration officials should 
        convey not only vision, but specific points of 
        anticipated pivot/rebalance content, including those 
        areas not directly related to security and defense that 
        go beyond existing bilateral engagement between the 
        U.S. and each of the countries.

   The Nunn-Lugar CTR program should be an integral part of 
        the ``rebalance'' to Asia strategy by the Obama 
        administration.

   Regarding the implementation of the Nunn-Lugar CTR program, 
        greater coordination is encouraged among the 
        Departments of Agriculture, State, Defense, Health and 
        Human Services (Centers for Disease Control), and other 
        appropriate departments and agencies to ensure seamless 
        implementation of efforts to identify and interdict WMD 
        or associated components.
      
      
------------

Notes:

  \1\ U.S. Department of State.

  \2\ ``Phuket Business: Thailand--U.S. Trade Reviving,'' Phuket 
        Gazette, September 10, 2012.

  \3\ ``U.S. Relations with Thailand--Fact Sheet,'' Bureau of East 
        Asian Affairs, U.S. Department of State, July 31, 2012.

  \4\ ``Philippine Deal May End Violence, Lure Investors: Southeast 
        Asia,'' Bloomberg News, Joel Guinto and Daniel Ten Kate, 
        October 8, 2012.

  \5\ ``Panetta's Asia-Pacific Trip Seeks to Broaden Rebalance,'' 
        American Forces Press Service, Cheryl Pellerin, November 12, 
        2012.

  \6\ Ibid.

                                  
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