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II
Calendar No. 159
106TH CONGRESS
1ST SESSION
S. 1234
[Report No. 106-81]
Making appropriations for foreign operations, export financing, and related
programs for the fiscal year ending September 30, 2000, and for other
purposes.
IN THE SENATE OF THE UNITED STATES
JUNE 17, 1999
Mr. McConnell, from the Committee on Appropriations, reported the
following original bill; which was read twice and placed on the calendar
A
BILL
Making appropriations for foreign operations, export financ-
ing, and related programs for the fiscal year ending
September 30, 2000, and for other purposes.
1
Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 That the following sums are appropriated, out of any
4 money in the Treasury not otherwise appropriated, for the
5 fiscal year ending September 30, 2000, and for other pur-
6 poses, namely:
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PHOTOCOPY
PRESERVATION
SEP 22 '99 16:27 FR SENATOR LIEBERMAN-DC 2022249750 TO 93952342
P.04/05
United States Senate
WASHINGTON, DC 20510
September 21, 1999
Dear Chairman McConnell and Ranking Member Leahy:
We are writing to draw your attention to an important issue in the upcoming
conference on the Foreign Operations FY2000 Appropriations bill.
Both the House Foreign Operations and Commerce, Justice, State Appropriations
bills contain a provision - known as the "Knollenberg rider" - which on its face would
prohibit "implementation" of the Kyoto Protocol prior to the Senate's advice and consent to
ratification. However, due to the ambiguity of the rider language, we are concerned that
the provision could prevent the U.S. from engaging in diplomatic efforts to ensure an cost-
effective, international solution to the problem of global climate change.
The Administration is currently engaged in vigorous international climate change
negotiations pursuant to its obligations under the United Nations Framework Convention
on Climate Change, which has been ratified by the Senate. These negotiations include
sharing information with other countries on the United States' successful experiences with
market-based mechanisms as a tool for fighting pollution; working with other countries to
find ways that these lessons could be applied to address greenhouse gas emissions; and
providing technical assistance to developing countries so that they may build the capacity to
more effectively limit their greenhouse gas emissions.
In no way do these activities "implement" the Kyoto Protocol. Rather, through
these negotiations the Administration is promoting U.S. national interests and the bipartisan
objectives of the Byrd-Hagel Resolution - specifically, that international efforts on climate
change protect U.S. economic interests and engage developing countries. Because the
Knollenberg rider states that none of the funds shall be used "in preparation for
implementation of the Kyoto Protocol," we are concerned that it would thwart the common
sense objectives of the Byrd-Hagel Resolution. Moreover, any restrictions on the
Administration's efforts to advance these objectives in international negotiations raises
Constitutional concerns.
The Senate has recognized the importance of engaging developing countries in the
effort to address global climate change. U.S. climate change diplomacy should not be
constrained by ambiguous rider language that would be detrimental to our national
interests. We believe that the Senate approach to this issue in the Foreign Operations and
Commerce, Justice, State Appropriations bills is the prudent approach, and ask that you
insist on the Senate position with respect to this rider in conference.
Sincerely,
JOSEPH J hilen I. LIEBERMAN
JOHN F. KERRY
SEP 22 '99 16:27 FR SENATOR LIEBERMAN-DC 2022249750 TO 93952342
P.05/05
John CHAFEE H. Chafee
JEHF BINGAMAN
AMES M. JERFORDS
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JOSEPH R. BIDEN, JR.
DANIEL PATRICK MOYNIHAN
FRANK R. LAUTENBERG Max MAX BAUCUS Baucus
** TOTAL PAGE. 05 **
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CONFERENCE REPORT ON H.R. 2606, FOREIGN OPERATIONS, EXPORT FINANCING, AND
RELATED PROGRAMS APPROPRIATIONS ACT, 2000 (House of Representatives - October 05,
1999)
Mi KNOLLENBERG. Mr. Speaker, I rise in strong support of the conference report to H.R. 2606, the
Fiscal Year 2000 Appropriations Bill for Foreign Operations, Export Financing and Related Agencies.
As : member of the subcommittee, I want to again commend the gentleman from Alabama (Chairman
Callahan) for the outstanding work that he has done, hard work. Shepherding an appropriations bill,
particularly this bill, to the process is no easy task. Yet, he has done it with diligence and impartiality, and he
has done it, frankly, with extraordinary fairness, I think; and I commend him for that.
I also, of course, want to thank the gentlewoman from California (Ms. Pelosi), the ranking member. I am
disappointed that she is going to oppose this bill.
By il want to thank the staff as well who have contributed SO much to bringing this bill to the floor in a shape
11 1 ink that is satisfactory.
From the beginning, we have worked in a bipartisan fashion to craft a foreign operations bill that reflects our
N: ion's international priorities, and the chairman mentioned those. while adhering to the budget constrain
the we face today.
Mr. Speaker, I would like to set the record straight on a provision in the conference report designed to
provent back-door implementation of the Kyoto Protocol.
Despite what was said during consideration of the rule, in no way does this provision prevent the United
Strees from engaging developing countries under the UN Framework Convention on Climate Change signed
by President Bush in 1992 and ratified by the Senate. Specifically, Articles 4, 6, and 17 allow voluntary
meanures and give developed country parties authority to engage in international education, listen carefully,
international education, develop technologies, promote sustainable development, and assist vulnerable
developing countries.
I point out to my colleagues that not one of these activities arises out of the Kyoto Protocol.
The funding prohibition states that no fund shall be used to implement or prepare to implement the Kyoto
protocol.
[Page: H9371] GPO's PDF
[TIME: 1745]
PHOTOCOPY
PRESERVATION
of 2
10/6/1999 12:02 PM
http://thomas.loc.gov/cgi-bin/query/D?r106:1:/temp/-r10632b2SQ:e1954
Not one of the aforementioned diplomatic activities arising out of the U.N. Framework Convention i
prevented by this prohibition.
The strationtis freet gagerde veloping.countriestunder the U.N Framework Convention. However,
the cannot sithe and engage other-nations regarding ratification-and implementation-of
the Protocol, which-the United States deems total youn worthy: of ratification and implementation.
The conference report was crafted, again. in a bipartisan fashion and taking into consideration all of the views,
certainly of everybody in this House. And the subcommittee. I think, has worked very well to bring all this
together. We need to unite behind this fair bill that will maintain U.S. leadership and strengthen our influence
across the globe.
Lesk for Members certainly on the other side to rethink their thoughts about voting against this bill. We need
to support this conference report.
Ms. PELOSI. Mr. Speaker, I yield 4 minutes to the gentlewoman from New York (Mrs. Lowey), a very
distinguished member of the subcommittee and a champion for democracy and peace throughout the world.
Mrs. LOWEY. Mr. Speaker, I rise in opposition, reluctantly, to this conference report.
Mr. Speaker, during the August debate. I was quite clear in expressing my strong reservations about this
foreign aid bill. But I voted for it, hoping that some of the most egregious funding cuts would be remedied in
conference and the overall flaws in the bill would be repaired through bipartisan negotiations.
I want to commend my friend and our distinguished chairman, the gentleman from Alabama (MrCallahan),
and our ranking member and my good friend, the gentlewoman from California (MsPelosi), for their hard
work in crafting this bill. Despite their best efforts, however, I believe that this bill, plagued by poor funding
levels from the start, still has serious problems.
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10/6/1999 12:02 PM
10/05/99
18:19
4
002/002
Fiscal Year 2000 Foreign Operations Appropriations
Conference Report
Colloquy - climate change language
Sen. Byrd: Mr. President, Sec. 583 of the conference report contains language
regarding implementation of the Kyoto Protocol. I would like to ask the distinguished
Chairman and Ranking Member of the Foreign Operations Subcommittee two questions
to clarify their understanding of this provision.
The United States is currently engaged in climate change negotiations to ensure
meaningful participation of developing countries and to ensure that greenhouse gas
emissions reductions are achieved in the most cost-effective manner. Is my
understanding correct that this provision is not intended to restrict the Administration
from engaging in these international negotiations related to both the Framework
Convention on Climate Change (FCCC), which was ratified by the Senate in 1992, and
the Kyoto Protocol to that Convention?
As you also know, the Senate has clearly expressed its views regarding the Kyoto
Protocol in S. Res. 98, adopted unanimously by the Senate on July 25, 1997. That
resolution calls on the Administration to support an approach to climate change that
protects the economic interests of the United States and seeks commitments from
developing countries to reduce greenhouse gas emissions. The Administration is
aggressively engaging developing countries to reduce greenhouse gas emissions through
international projects and activities emphasizing market-based mechanisms and
environmental technology. It is my understanding that this provision is not intended to
restrict international programs or activities to encourage commitments by developing
countries to reduce greenhouse gas emissions. Is my understanding correct?
Sen. McConnell: I thank the distinguished Senator from West Virginia for his
questions. Your understanding is correct. Sec. 583 is not intended to restrict U.S.
negotiations or activities such as you have described. Rather, it is intended to prevent the
Administration from implementing the Kyoto Protocol prior to its ratification.
Sen. Leahy: The Senator's understanding is correct. Sec. 583 is not intended to
prohibit the United States from engaging in international climate change negotiations or
activities that would encourage participation by developing countries.
Today's Press Release
Page 1 of 4
Vete statement
White House Briefing Room
October 18, 1999
TO THE HOUSE OF REPRESENTATIVES:
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
October 18, 1999
TO THE HOUSE OF REPRESENTATIVES:
I am returning herewith without my approval H.R. 2606, the "Foreign
Operations, Export Financing, and Related Programs Appropriations Act,
2000. "
The central lesson we have learned in this century is that we cannot
protect American interests at home without active engagement abroad.
Common sense tells us, and hard experience has confirmed, that we must
lead in the world, working with other nations to defuse crises, repel
dangers, promote more open economic and political systems, and strengthen
the rule of law. These have been the guiding principles of American
foreign policy for generations. They have served the American people
well, and greatly helped to advance the cause of peace and freedom around
the world.
This bill rejects all of those principles. It puts at risk America's
50-year tradition of leadership for a safer, more prosperous and
democratic world. It is an abandonment of hope in our Nation's capacity
to shape that kind of world. It implies that we are too small and
insecure to meet our share of international responsibilities, too
shortsighted to see that doing so is in our national interest. It is
another sign of a new isolationism that would have America bury its head
in the sand at the height of our power and prosperity.
In the short term, H.R. 2606 fails to address critical national
security needs. It suggests we can afford to underfund our efforts to
keep deadly weapons from falling into dangerous hands and walk away
without peril from our essential work toward peace in places of conflict.
Just as seriously, it fails to address America's long-term interests. It
reduces assistance to nations struggling to build democratic societies
and open markets and backs away from our commitment to help people
trapped in poverty to stand on their feet. This, too, threatens our
security because future threats will come from regions and nations where
instability and misery prevail and future oppor-tunities will come from
nations on the road to freedom and growth.
By denying America a decent investment in diplomacy, this bill
suggests we should meet threats to our security with our military might
alone. That is a dangerous proposition. For if we underfund our
http://www.whitehouse.gov/library/PresReleases.cgi?date=0&briefing-l
10/18/99
Today's Press Release
Page 2 of 4
diplomacy, we will end up overusing our military. Problems we might have
been able to resolve peace-fully will turn into crises we can only
resolve at a cost of life and treasure. Shortchanging our arsenal of
peace is as risky as shortchanging our arsenal of war.
The overall funding provided by H.R. 2606 is inadequate. It is about
half the amount available in real terms to Presi-dent Reagan in 1985, and
it is 14 percent below the level that I requested. I proposed to fund
this higher level within the budget limits and without spending any of
the Social Security surplus. The specific shortfalls in the current bill
are numerous and unacceptable.
more
(OVER)
2
For example, it is shocking that the Congress has failed to fulfill
our obligations to Israel and its neighbors as they take risks and make
difficult decisions to advance the Middle East peace process. My
Administration, like all its predecessors, has fought hard to promote
peace in the Middle East. This bill would provide neither the $800
million requested this year as a supplemental appropriation nor the $500
million requested in FY 2000 funding to support the Wye River Agreement.
Just when Prime Minister Barak has helped give the peace process a jump
start, this sends the worst possible message to Israel, Jordan, and the
Palestinians about America's commitment to the peace process. We should
instead seize this opportunity to support them.
Additional resources are required to respond to the costs of building
peace in Kosovo and the rest of the Balkans, and I intend to work with
the Congress to provide needed assistance. Other life-saving peace
efforts, such as those in Sierra Leone and East Timor, are imperiled by
the bill's inadequate funding of the voluntary peacekeeping account.
My Administration has sought to protect Americans from the threat
posed by the potential danger of weapons proliferation from Russia and
the countries of the former Soviet Union. But the Congress has failed to
finance the Expanded Threat Reduc-tion Initiative (ETRI), which is
designed to prevent weapons of mass destruction and weapons technologies
from falling into the wrong hands and weapons scientists from offering
their talents to countries, or even terrorists, seeking these weapons.
The bill also curtails ETRI programs that help Russia and other New
Independent States strengthen export controls to avoid illicit
trafficking in sensitive materials through their borders and airports.
The ETRI will also help facilitate withdrawal of Russian forces and
equipment from countries such as Georgia and Moldova; it will create
peaceful research opportunities for thousands of former Soviet weapons
scientists. We also cannot afford to underfund programs that support
democracy and small scale enterprises in Russia and other New Independent
States because these are the very kinds of initiatives needed to complete
their transformation away from communism and authoritarianism.
A generation from now, no one is going to say we did too much to help
the nations of the former Soviet Union safeguard their nuclear technology
and expertise. If the funding cuts in this bill were to become law,
future generations would certainly say we did too little and that we
imperiled our future in the process.
My Administration has also sought to promote economic progress and
political change in developing countries, because America benefits when
these countries become our partners in security and trade. At the
Cologne Summit, we led a historic effort to enable the world's poorest
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10/18/99
Today's Press Release
Page 3 of 4
and most heavily indebted countries to finance health, education, and
opportunity pro-grams. The Congress fails to fund the U.S. contribution.
The bill also severely underfunds Multilateral Development Banks,
providing the lowest level of financing since 1987, with cuts of 37
percent from our request. This will virtually double U.S. arrears to
these banks and seriously undermine our capacity to promote economic
reform and growth in Latin America, Asia, and especially Africa. These
markets are critical to American jobs and opportunities.
Across the board, my Administration requested the funding necessary to
assure American leadership on matters vital to the interests and values
of our citizens. In area after area, from fighting terrorism and
international crime to promoting nuclear
more
3
stability on the Korean peninsula, from helping refugees and disaster
victims to meeting its own goal of a 10, 000-member Peace Corps, the
Congress has failed to fund adequately these requests.
Several policy matters addressed in the bill are also problematic.
One provision would hamper the Export-Import Bank's ability to be
responsive to American exporters by requiring that the Congress be
notified of dozens of addi-tional kinds of transactions before the Bank
can offer financing. Another provision would allow the Export-Import Bank
to operate without a quorum until March 2000. I have nominated two
individuals to the Bank's Board, and they should be confirmed.
A third provision could be read to prevent the United States from
engaging in diplomatic efforts to promote a cost-effective, global
solution to climate change. A fourth provision places restrictions on
assistance to Indonesia that could harm our ability to influence the
objectives we share with the Congress: ensuring that Indonesia honors
the referendum in East Timor and that security is restored there, while
encouraging democracy and economic reform in Indonesia. Finally, this
bill contains several sections that, if treated as mandatory, would
encroach on the President's sole consti-tutional authority to conduct
diplomatic negotiations.
In sum, this appropriations bill undermines important American
interests and ignores the lessons that have been at the core of our
bipartisan foreign policy for the last half century. Like the Senate's
recent vote to defeat the Comprehensive Test Ban Treaty, this bill
reflects an inexcusable and potentially dangerous complacency about the
opportunities and risks America faces in the world today. I therefore am
returning this bill without my approval.
I look forward to working with the Congress to craft an appropriations
bill that I can support, one that maintains our commitment to protecting
the Social Security surplus, properly addressing our shared goal of an
America that is strong at home and strong abroad, respected not only for
our leadership, but for the vision and commitment that real leadership
entails. The American people deserve a foreign policy worthy of our
great country, and I will fight to ensure that they continue to have one.
WILLIAM J. CLINTON
http://www.whitehouse.gov/library/PressReleases.cgi?date=0&briefing=
10/18/99
Today's Press Release
Page 4 of 4
THE WHITE HOUSE,
October 18, 1999.
###
Gosto p or evious day
this
day Is list of Pre ssi-Releases
will
To comment on this service, send feedback to the Web Development Team
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10/18/99
JUL-29-99 17:43 FROM:
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RIA
EXECUTIVE OFFICE OF THE PRESIDENT
Your
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
July 29, 1999
(House Floor)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
H.R. 2606 - FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED
PROGRAMS APPROPRIATION BILL FY 2000
(Sponsor. Young (R) Florida; Callahan (R) Alabama)
This Statement of Administration Policy provides the Administration's views on the
Foreign Operations, Export Financing, and Related Programs Appropriations Bill, FY 2000, as
reported by the House Appropriations Committee. Your consideration of the Administration's
views would be appreciated.
The allocation of discretionary resources available to the House under the Congressional
Budget Resolution is insufficient to make the necessary investments that our citizens need and
expect. The President's FY 2000 Budget proposes levels of discretionary spending that meet
such needs while conforming to the Bipartisan Budget Agreement by making savings proposals
in mandatory and other programs available to help finance this spending. Congress has approved
and the President has signed into law nearly $29 billion of such offsets in appropriations
legislation since 1995. The Administration urges the Congress to consider such proposals as the
FY 2000 appropriations process moves forward.
As a result of the inadequate 302(b) allocation for Foreign Operations, the bill reported
by the Committee on July 20th is 51.9 billion, or 14 percent, below the program level requested
by the President Funding at this level would seriously impair the President's ability to conduct
an effective foreign policy.
The Administration appreciates the efforts of the Committee to accommodate certain of
the President's priorities within its 302(b) allocation, as well as the Committee's strong support
for limiting the number of provisions in language that restrict and earmark the use of funds.
Nonetheless, the allocation available for Foreign Operations for FY 2000 is substantially below
the level requested by the President The funding level provided by the Committee, therefore,
would prevent the President from confronting or dealing effectively with new challenges and is
inadequate to maintain America's leadership around the world. It would inevitably require
reductions from previously enacted levels for programs managed by the Departments of State
and the Treasury, the Agency for International Development, and others.
If the Congress were to enact a bill that does not resolve the significant funding shortfalls
in the Committee-reported bill, the President's senior advisers recommend that he veto the bill.
JUL-29-89 17:44 FROM:
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The rule approved by the House on July 27th makes in order three amendments related to
international family planning programs:
The Administration strongly opposes the Smith amendment which would prohibit
the U.S. Government from providing funds to foreign non-governmental
organizations if these organizations use any of their own funding from non-U.S.
Government sources for abortion-related services or advocacy. The
Administration continues to oppose these restrictions, which would deny funding
to the most experienced and qualified family planning and maternal and child
health care providers. In prior years, the Administration has made clear that the
President would veto the bill if it contained the "Mexico City" language. The
President took such action in 1998 when he vetoed the State Department
authorization bill Should the Smith Amendment be included in the final bill
presented to the President, the President would veto the bill.
The Administration strongly supports the Greenwood amendment. This
amendment bars population planning activities that are illegal in the recipient's
country, but allows the organization's own funds to be used for legal activities. It
provides that advocacy activities in opposition to coercive abortion or involuntary
sterilization would not be grounds for disqualification of U.S. funds. The
amendment also makes clear that organizations receiving U.S. funds for family
planning services must certify that they will use those funds to reduce the
incidence of abortion and reiterates the ban on the use of U.S. funds to perform or
lobby for abortions.
The Administration also strongly opposes the Pitts amendment, which would
prohibit the use of Child Survival account funds for child spacing assistance
Child spacing plays a critical and integral role in Child Survival-funded programs
aimed at saving the lives of children and their mothers, and this amendment
therefore would undermine these critical maternal and child health programs.
Detailed comments on the Committee-reported bill are provided in the attachment
Attachment
2
JUL-29-89 17.44 FROM,
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Attachment
(House Floor)
ADDITIONAL CONCERNS
H.R. 2606 FOREIGN OPERATIONS, EXPORT FINANCING AND RELATED
PROGRAMS APPROPRIATIONS BILL FY 2000
(AS REPORTED BY THE HOUSE APPROPRIATIONS COMMITTEE)
Multilateral Development Banks (MDBs). The Administration's request, excluding
arrears payments, is 40 percent below the scheduled payments sought for the MDBs in
the mid-1990s. The Committee's decision to reduce funding for the MDBs by $493
million amounts to a 35-percent reduction to the President's request. This severe cut, and
the lack of any funding for arrearage payments, would erode much of the progress made
in the FY 1998 and FY 1999 appropriations bills in meeting the past-due and continued
obligations of the United States to these institutions, and in strengthening our ability to
get approval of important institutional reforms. In particular, the Administration is
disappointed with the Committee's decision to cut a further $200 million from the
International Development Association (IDA). All of IDA resources go to countries
whose people earn less than $3 per day - 50 percent of IDA commitments are directed
towards the poorest countries in Sub-Saharan Africa This reduction would undercut
congressional efforts TO address the humanitarian and development needs of the continent,
and, in particular, undercut the intent of the recently-passed African Growth and
Opportunity Act.
The lack of any funding for the African Development Bank, the Inter-American
Investment Corporation, the Multilateral Investment Fund, the Multilateral Investment
Guarantee Agency, and the Community Adjustment and Investment Program (part of the
North American Development Bank)- combined with the drastic cuts in the Global
Environment Facility and the Asian Development Fund - would call into serious
question the willingness of other donors to continue their support for these critical
institutions at the very point when their support for environmental and economic
development is most needed.
Independent States of the Former Soviet Union. The Administration continues to place 2
high priority on our relations with this region and appreciates the Committee's ongoing
efforts to reduce earmarks and restrictions on our assistance to this region. Reducing
such restrictions enables the Administration to target assistance to maximize its
effectiveness, especially in working with pro-reform governments and non-governmental
democratic forces and the private sector. The Administration praises the Committee for
its removal of restrictions on aid to local governments in Russia, although we are
concerned by the removal of Presidential waiver authority for these restrictions.
JUL-29-99 17:45 FROM:
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The overall funding provided by the Committee, $725 million, is not only below the
requested $1,032 million but is also $122 million below the FY 1999 level. The
Administration believes that the economic problems in Russia and the rest of the
Independent States, which have created hardships for millions of people and heightened
the risk of proliferation of weapons of mass destruction and related expertise, call for
increased rather than decreased efforts. A reduction of the magnitude contained in the
Committee mark it ould place threat reduction programs that are in our immediate
national security interests in competition with programs that will help secure our long-
term interests in the region, such as support for small businesses in the regional
initiatives, exchange programs designed to develop a new generation of pro-reform
leaders, and institutional partnerships. The Administration understands that an
amendment may be offered that would prohibit any support for these critical threat
reduction programs. The Administration opposes any such amendment.
Kosovo and the Balkans. The Administration appreciates the Committee's provision of
the full request for Assistance to Eastern Europe and the Baltic States. Nonetheless, as
the crisis in Kosovo has demonstrated, there is clearly a need for additional funds to
support Kosovo operations and, indeed, enhancements to various programs throughout
the Balkan region. We are now working with the Departments of Defense and State and
other agencies to determine current estimates for peacekeeping and for peace
implementation, including additional humanitarian needs, such as refugee programs.
beyond the original request. The President will submit an additional FY 2000 funding
request to the Congress.
Korean Peninsula Energy Development Organization (KEDO). The Administration
strongly objects to the bill's provisions limiting the amount of the U.S. contribution to
KEDO. The cut of $20 million, or 36 percent, in funding could prevent the United States
from fulfilling its commitments under the Agreed Framework to provide heavy fuel oil to
North Korea and could damage our nonproliferation policy on the Korean Peninsula. In
addition, the bill introduces new Presidential certifications that go well beyond what has
been required in the past and could make it extremely difficult to carry out our
commitments. Finally, the prohibition on the President's ability to exercise his special
authorities to provide additional funding for KEDO, should he deem it to be in the
national interest, is unwise.
Wve River and Middle Eastern Assistance. The Administration welcomes the
Committee's provision of the entire FY 2000 request for additional assistance for Jordan.
The bill does not, however, provide $400 million of the funds requested by the President
for FY 2000 to support the Wye River Agreement, nor does it provide $800 million of the
funds requested as an FY 1999 supplemental appropriation for this purpose. Given the
renewed dedication of all sides to the peace process, the Administration hopes to work
with Congress to provide this funding to support and strengthen the peace process and to
move toward a permanent agreement.
2
JUL-29-95 17:45 FROM:
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The Administration continues to welcome the Committee's efforts to ramp down
traditional levels of assistance to countries in the Middle East. However, the
Administration is disappointed at the Committee's failure to accept our specific proposal
for a gradual reduction in aid to Istael and Egypt and with its decision not to incorporate
the provision of an Interest Bearing Account for a portion of Egypt's Foreign Military
Financing (FMF). The Administration will work with the Congress on the scoring
implications of this proposal.
Economic Support Fund (ESF). The reduction of over $140 million to the President's
request for non-Wye River ESF would effectively remove any ability that the President
has to respond to a host of threats and new crises around the world. These cuts would
force the reduction of programs intended to increase political stability and
democratization in Africa; support democracy efforts in Guatemala, Peru, and Ecuador;
and, bolster democratic reform and economic recovery in Asia
Debt Reduction The cut of almost three-fourths to the President's request for debt
reduction programs, from $120 million to $33 million, would cripple our ability to fund
the bipartisan debt for environment program that was enacted by the Congress last year
and would damage our ability to contribute to the Trust Fund for the Highly Indebted
Poor Countries, which is an essential component of current debt reduction programs as
well as of the historic debt initiative agreed to in Cologne This initiative has received
broad support from governments, multilateral institutions, religious groups. and
individuals worldwide.
Peacekeeping Operations. The Committee's $53.5 million, or 41 percent, cut to the
President's request for voluntary peacekeeping operations would decrease funds available
for Organization for Security and Cooperation in Europe (OSCE) missions in Bosnia,
Croatia, and Kosovo; reduce assistance for the African Crisis Response Initiative; and,
diminish our ability to respond to unforeseen conflict and crises.
Nonproliferation, Anti-terrorism Demining and Related Programs. The Committee has
cut these programs by $49 million, or 21 percent, from the President's request. In
addition to the reduction for KEDO discussed separately, the request for export control
assistance would be cut by two-thirds (from $15 million to $5 million). This would
greatly slow our efforts to assist the NIS and other regions to develop tighter controls to
prevent nuclear smuggling.
United Nations Population Fund. The Administration is strongly committed to
population and reproductive health programs and to the United Nations Population Fund
(UNFPA). The Administration appreciates the Committee's recognition that it would be
counterproductive to prohibit funding for UNFPA, which provides voluntary family
planning and other services to over 160 countries, because of its operations in China. We
are concerned, however, that the mark for International Organizations and Programs
would not be sufficient to allow for an adequate contribution for UNFPA programs that
save lives and promote healthy families
3
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U.S. Agency for International Development (USAID). The Administration is concerned
about the Committee's drastic cut in Development Assistance. A $111 million reduction
below the request, or $12 million below the FY 1999 enacted level, would threaten
USAID's ability to implement such programs as the Africa Education Initiative and the
Food Security Initiative, and would limit the Agency's ability to address the financial
crisis in Asia, as well as to address follow-up needs from the recent natural disasters in
Central America. The bill also fails to include language that would permit assistance to
customs officials and offices. The Administration requested this language to encourage
the free flow of commerce within regions in sub-Saharan Africa and Latin America,
thereby supporting private sector development in those regions.
The Administration greatly appreciates the Committee's full funding of the Child
Survival and Disease Programs request However, within this amount, the
Administration is concerned that full funding of $10 million has not been provided for the
Administrations's "School Works" initiative. This initiative addresses the critical issue
of child labor in developing countries, a concern the Congress shares, and we urge the
Committee to fully fund this program We also note that the recently-transmitted, fully
offset budget amendment to provide an additional $100 million for the fight against
global AIDS included an additional $45 million for this account We urge the Committee
to provide these critically-needed additional resources.
The Administration is deeply concerned that the $480 million funding level for USAID's
operating expenses is inadequate to meet the operational demands on USAID. The
Committee acknowledges the transfer of the security function from the Inspector
General's (IG's) office and has reduced funding for the IG accordingly but provides no
increase to cover this additional $7.7 million cost in this account. Even if increased to
cover these security requirements, the Committee's recommended operating expense
level would require a reduced workforce level inconsistent with USAID's responsibility
for proper oversight of the program levels that the Committee has provided. The
Committee's funding level would also make it impossible for USAID to complete needed
replacement of its financial management systems or to begin the significant security
improvements, including temporary and permanent relocations of USAID missions, that
are required to respond to the increased threats that U.S. personnel face around the world.
The bill does not contain the Administration's request for Voluntary Separation
Incentives for employees of USAID (buyout authority). This buyout authority is vital to
allow USAID to continue to reduce its employment levels in Washington. The
Administration is also concerned that the Committee has not approved the requested
authority for USAID to create a Working Capital Fund similar to those already available
to the Department of State and other agencies. It is important that USAID be provided
the means to capture the costs of becoming a service provider to other agencies under the
ICASS system, and therefore encourage competition among agencies to provide the
lowest-cost and most efficient services.
4
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The Administration is concerned that its request for reinstatement of the Development
Fund for Africa (DFA) is not included in the bill. Funding provided under the DFA
affords needed stability to respond to development opportunities in Africa, as well as to
complex crises on a fragile continent, and maintains our strong commitment to an Africa
in transition There are insufficient resources within the Development Assistance account
to address such needs.
The Administration is disappointed that the Committee has not approved transfer
authority for the Development Credit Authority. USAID's recent implementation of a
credit management outsourcing contract and other credit management improvements
justifies continued funding of this innovative and improved credit mechanism. We are
also disappointed that the Committee has not provided subsidy budget authority for the
Urban Environment Credit program
Peace Corps. The Administration appreciates the Committee's efforts to support the
Peace Corps within tight budger constraints. However, the Administration is very
concerned that the Committee's funding level of $240 million falls short of the amount
necessary for the Peace Corps to continue to promote grass-roots development and
strengthen the ties of cross-cultural understanding between Americans and the people of
over 70 countries. This $30 million, or 11 percent, reduction to the President's request for
the Peace Corps would force the agency to reduce the number of volunteers currently
serving overseas and to consider closing additional country programs. It would also
prevent implementation of the bipartisan initiative to field 10,000 volunteers in the new
century. Earlier this year, both the House and Senate passed an authorization bill with
bipartisan support that would enable the Peace Corps to send 10,000 volunteers overseas.
Export and Investment Financing The Administration appreciates the Committee's
effort to fund the requested increase in the Export-Import Bank's administrative budget.
However, we note the Committee's reduction in the Export-Import Bank's subsidy
budget - - $80 million below the request and $6 million below the FY 1999 enacted level.
The requested increase is an important part of the President's manufactured exports
initiative. The Committee's reduction would reduce the financing available to United
States exporters that are attempting to continue to export during the ongoing economic
downturn in Asia and much of the rest of the developing world. Because exports have
been such a critical component of job creation in the United States, this cut could have a
negative impact on job growth.
The Administration is also very concerned about the reduction to the President's request
for the Trade and Development Agency (TDA). As with the Export-Import Bank, the
requested increase for TDA is an integral part of the President's export initiative, and the
Committee bill would significantly reduce TDA's ability to fund feasibility studies that
help U.S. exporters take advantage of potential market opportunities.
5
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The Administration appreciates the Committee's full funding of the administrative budget
for the Overseas Private Investment Corporation (OPIC). We are concerned, however, by
the Committee's reduction of $3.5 million to the request for OPIC's subsidy. The
Administration had already reduced the request by over 50 percent from the FY 1999
enacted level, and a further cut would make it difficult for OPIC to meet the needs of
investors, including small businesses, who rely on OPIC financing in important markets
such as Africa, the Caribbean, and Central America. Likewise, we are concerned about
language that would allow OPIC to use appropriated funds to engage in direct equity
investments. While OPIC has had the authority to make such direct equity investments
for a number of years, the Congress has never provided funding for this authority. The
Administration believes that this proposal has important budgetary and policy
consequences that have not been fully reviewed. For that reason, the Administration
cannot support the language allowing OPIC such authority until it has had 2 chance to
consider this proposal theroughly in further consultation with Congress.
The Administration would strongly oppose possible amendments that would preclude
OPIC from offering new loan guarantees. Such guarantees are important to the
promotion of US business opportunities in developing markets around the world
Precluding these guarantees would harm the mutually beneficial relationship between
American business and the developing foreign private sectors in Africa, the Caribbean,
Central America and elsewhere.
Migration and Refugee Assistance (MRA) The Committee's $20 million reduction to
the President's request for MRA could require a reduction in annual refugee admissions
and would not provide adequate resources for an initiative to address programming
shortfalls in Africa necessary to provide life-saving. minimum international standards of
assistance in key sectors (including nutrition, shelter, medicine, sanitation, and
protection). Such reductions in assistance to refugees in Africa and elsewhere at the very
time huge resources are going into Kosovo could create serious political and equity
issues.
Inter-American Foundation. The Administration strongly opposes the cut of over $17
million to the request for the Inter-American Foundation. This reduction, which would
cut funding by 75 percent of the FY 1999 enacted level. would completely debilitate the
Foundation, making it impossible to continue its important work of supporting innovative
development initiatives and U.S. corporate social investments in Latin America and the
Caribbean. The Administration recognizes the need for changes to enhance the
Foundation's internal oversight procedures and project monitoring, but significant
progress has been made to date, and the Administration is committed to ensuring further
improvements are made.
African Development Foundation (ADF). The Administration commends the Committee
for fully funding the request for ADF, and for recognizing the significant management
and programmatic improvements that this small but important agency has implemented
during the past year.
6
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Treasurv International Affairs Technical Assistance. The Administration is concerned
that the Committee has provided only $1.5 million of the $8.5 million requested for the
Department of Treasury's International Affairs Technical Assistance program. These
resources are necessary to fund the Department's plan to provide technical assistance to
Ministries of Finance and Central Banks that are attempting to implement fiscal and
financial reforms in Africa, Asia, and Latin America
Kyoto Protocol Restriction. The Committee has included language in the General
Provisions that would prohibit the Administration from proposing or issuing rules to
implement the Kyoto Protocol. This is an unnecessary restriction because the
Administration has stated that it does not intend to implement the Protocol on global
climate change until it has been ratified by the Senate.
Additional General Provisions Language Concerns. Section 514(a) (Surplus
Commodities) and section 566(b) (Sanctuary to Indicted War Criminals- Multilateral
Assistance) purport to direct the Executive to take particular positions in international
organizations. When construed as mandates, these provisions would encroach on the
President's sole constitutional authority to control negotiations. If unchanged, this
language would be construed as precatory.
Amendment on the Baku-Cevhan pipeline. The Administration understands that an
amendment may be offered that would prohibit any U.S. Government support for
financing the Baku, Azerbaijan-Ceyhan, Turkey pipeline in the Caspian Basin unless a
final peace agreement was reached between Armenia and Azerbaijan on the Nagorno
Katabakh region. The Administration would strongly oppose such an amendment, which
would underent U.S. energy policy, cripple U.S. efforts to provide Caspian countries with
a credible economic development path linked to the west, encourage regional exporters to
build export pipelines through Iran, and disadvantage U.S. businesses competing for
millions of dollars in exports. It would hinder, rather than help, U.S. efforts to achieve a
just pezce in the region and improve Turkish-Armenian relations.
***********
7
SEP-21-1999 19:36
OES Congressional Affairs
202 647 4221 P.05/06
HOUSE-SENATE CONFERENCE ON H.R. 2606/$.1234
Title IV Multilateral Economic Assistance
Foreign Operations, Export Financing, and Related Programs
Appropriations Act, 2000
FUNDING FOR GLOBAL ENVIRONMENT FACILITY (GEF)
House Provision:
The House bill provides only $50 million, or $93.3
million less than the Administration's $143.333 million
request.
Senate Provision:
The Senate bill provides only $25 million toward
arrears, compared with the Administration's request of
$143.3 million ($107.5 million for our annual share and
$35.8 million toward arrears).
Department Position:
We prefer the GEF request level of $143.333 million.
Talking Points:
We prefer the request level of $143.3 million rather than
the proposed House funding level of $50 million, or the
Senate proposed level of $25 million for contributions
previously due. The Administration believes that the
levels proposed by the House and Senate are unwise.
The role of the GEF is to encourage developing countries
to take on greater domestic responsibility for protecting
the global environment. The GEF funds only the parts of
projects that create global environmental benefits that
are in the American taxpayer's interest. Recipient
countries pay for local benefits of projects. The GEF
also leverages funds from many other sources, including
the private sector, in aiding environmentally sound
projects in developing countries.
SEP-21-1999 19:36
OES Congressional Affairs
202 647 4221 P.06/06
2
The Administration's FY2000 request of $143.3 million
includes $35.8 million toward clearing our long-standing
arrears to the GEF's first replenishment (GEF I) and a
$107.5 million contribution towards our pledge to the
current GEF replenishment (GEF II).
It is critical for the U.S. to make good on its GEF
replenishment pledge and to address the arrearage
problem. A slow or inadequate response to meeting our
financial commitments to the GEF threatens U.S. global
environmental leadership and influence, including our
ability to leverage contributions from others that
promote sound environmental policy in developing
countries.
TOTAL P.06
"Johnston, Jake" <[email protected]>
09/21/99 12:49:59 PM
Record Type:
Record
To:
Julie M. Anderson/WHCCTF/EOP
CC:
Subject: FW: No tax $ for unratified Kyoto Protocol
FYI
Original Message
From: Hogan, Aloysius
Sent:
Tuesday, September 21, 1999 12:46 PM
To:
Dear Colleague
Subject:
No tax $ for unratified Kyoto Protocol
Joseph K. Knollenberg
11th District, Michigan
Congress of the United States
Phone: 202-225-5802
Fax: 202-226-2356
http://www.house.gov/knollenberg/
<http://www.house.gov/knollenberg/>
Not one tax dollar for unratified Kyoto Protocol
STEER CLEAR OF THE INSLEE/UDALL FALSEHOODS
Not one taxpayer dollar should be spent to implement
the Kyoto Protocol, and that includes dollars spent to pressure other
nations into ratifying and implementing a treaty that the United States
deems totally unworthy of ratification.
Representatives Jay Inslee and Mark Udall, however,
want to spend tax dollars to do just that. That is totally unacceptable.
The Kyoto Protocol is not a legitimate purpose for U.S. tax dollars, said
the US Senate in the Byrd-Hagel Resolution, by a vote of 95-0, and says the
U.S. Constitution.
Representatives Inslee and Udall make five factual
errors in their Dear Colleague and Statement for the Record, respectively,
regarding: 1. the Byrd-Hagel Resolution's date, and 2. contents; 3. US
authority to discuss climate change; 4. the effect of the Knollenberg
language; and 5. floor statements:
1.
ERROR RE: BYRD-HAGEL RESOLUTION'S DATE
The Byrd-Hagel Resolution was adopted in 1997, not
last year as Representative Inslee claimed in error.
2.
ERROR RE: BYRD-HAGEL RESOLUTION'S CONTENTS
flawed, unratified Kyoto Protocol!
Byrd-Hagel Resolution regarding the Kyoto Protocol
(Passed with a Senate vote of 95-0 on July 25, 1997)
Resolved, That it is the sense of the Senate that--
(1) the United States should not be a signatory to
any protocol to, or other agreement regarding, the United Nations Framework
Convention on Climate Change of 1992, at negotiations in Kyoto in December
1997, or thereafter, which would--
(A) mandate new commitments to limit or
reduce greenhouse gas emissions for the Annex I Parties, unless the protocol
or other agreement also mandates new specific scheduled commitments to limit
or reduce greenhouse gas emissions for Developing Country Parties within the
same compliance period, or
(B) would result in serious harm to the
economy of the United States; and
(2) any such protocol or other agreement which
would require the advice and consent of the Senate to ratification should be
accompanied by a detailed explanation of any legislation or regulatory
actions that may be required to implement the protocol or other agreement
and should also be accompanied by an analysis of the detailed financial
costs and other impacts on the economy of the United States which would be
incurred by the implementation of the protocol or other agreement.
Washington Post
Taking Exception
Advice to Heed On the Kyoto Treaty
Date: Wednesday, May 6, 1998
By: Robert C. Byrd and Chuck Hagel
The foresight of our nation's Founding Fathers has
been particularly valuable in the debate swirling around the U.N. Global
Climate Treaty negotiated in December 1997 in Kyoto, Japan. Nowhere has it
been more evident than in the March 15 Outlook article by John
Passacantando, director of Ozone Action, a nonprofit advocacy group.
Passacantando takes issue with the involvement of
the Senate during the negotiations concerning this treaty, saying, "From the
day [the Byrd-Hagel resolution] was passed in July, its language has shaped
both the negotiations over and the debate about the global warming treaty
agreed to in December 1997. Now the Byrd-Hagel resolution is also likely to
influence the coming Senate debate about ratification of the treaty."
That is precisely the role the Framers had in mind
when they drafted our Constitution and gave the Senate the responsibility of
"Advice and Consent" on all treaties. Our system of government differs from
those of the nearly 160 other nations that were involved in the Kyoto
negotiations. Our legislative branch is not meant to be a rubber stamp for
our executive branch; it is co-equal with the executive branch. The
administration can negotiate, but only the Senate can provide the consent
necessary to give any treaty the force of law in the United States.
Therefore, it would be unwise for an administration to ignore the advice of
the Senate.
Passacantando said, "Senators had minimal time to
research the resolution; there were no hearings." To the contrary, the
resolution was introduced on June 12, 1997, and the vote did not occur until
July 25, 1997. More than a month before the vote occurred, two hearings on
this issue were conducted by a Foreign Relations subcommittee, the first of
which included testimony from the administration's lead negotiator for this
treaty. As a result of the hearings on the resolution, a report was issued
by the Foreign Relations Committee more than a week before the Senate vote
occurred. Sixty-five senators of both parties added their names as
cosponsors to this resolution before the vote was taken.
Despite attempts by some to portray it as ambiguous,
the language of the Byrd-Hagel resolution is clear. The resolution called
on the president not to sign any treaty or agreement in Kyoto unless two
basic conditions were met. First, the resolution directed the president not
to sign any treaty that placed legally binding obligations on the United
States to limit or reduce greenhouse gas emissions "unless the protocol or
agreement also mandates new specific scheduled commitments to limit or
reduce greenhouse gas emissions for Developing Country Parties within the
same compliance period." The second requirement of the resolution was that
the president should not sign any treaty that "would result in serious harm
to the economy of the United States."
The Byrd-Hagel resolution was not a "handicap," as
Passacantando suggested. It was the clear "advice" of the U.S. Senate -- as
contemplated in the Constitution -- provided for the executive branch, which
was engaged in negotiations on a treaty.
The agreement reached in Kyoto does not meet either
of the criteria laid out in the Byrd-Hagel resolution. Further negotiations
and work clearly will be needed this year and probably beyond before these
tests can be met. These tests must be met. The U.N. Global Climate Treaty
should not be signed by the president until it meets both of these clear
objectives.
Robert C. Byrd is a Democratic senator from West Virginia.
Chuck Hagel is a Republican senator from Nebraska.
Aloysius Hogan
Legislative Director
Office of the Honorable Joe Knollenberg
phone: 202-225-5802
fax: 202-226-2356
[email protected]
<mailto:[email protected]>
Sep.22. 1999 11:42AM
No.0597
P.
2/6
Congress of the United States
@lashington, DC 20515
September 21, 1999
The Honorable Bill Young, Chairman
The Honorable David Obey, Ranking Member
House Appropriations Committee
H-218, The United States Capitol
Washington, DC 20515
Dear Chairman Young and Congressman Obey:
We are writing to draw your attention to an important issue in the upcoming
conference on both the Foreign Operations and the Commerce, Justice State FY2000
Appropriations bills.
Both the House Foreign Operations and Commerce, Justice, State Appropriations
bills contain a provision - known as the "Knollenberg rider" - which on its face would
merely prohibit "implementation" of the Kyoto Protocol prior to the Senate's advice and
consent to ratification. We are concerned, however, that the provision could prevent the
U.S. from engaging in diplomatic efforts to ensure a global, cost-effective solution to the
global problem of climate change.
The Administration is currently engaged in vigorous international climate change
negotiations These negotiations include sharing information with other countries about
the United States' successful experiences with market-based mechanisms as a tool for
fighting pollution; working with other countries to find ways that these lessons could be
applied to address greenhouse gas emissions; and providing technical assistance to
developing countries so that they may build the capacity to more effectively limit
greenhouse gas emissions.
In no way, do these activities "implement" the Kyoto Protocol. Rather, through
these negotiations the Administration is promoting U.S. national interests and the
bipartisan objectives of the Byrd-Hagel resolution - specifically, that international efforts
on climate change protect U.S. economic interests and engage developing countries.
Moreover, any restrictions on the Administration's efforts to advance these objectives in
international negotiations raises Constitutional concerns. House sponsors have
specifically stated that the provision is intended to restrict the Administration's ability to
engage developing countries.
PRINTED ON RECYCLED PAPER
Sep.22. 1999 11:43AM
No.0597 P. 3/6
The Honorable Bill Young and David Obey
September 21, 1999
Page Two
As mentioned above, the Senate has recognized the importance of engaging
developing countries in the Byrd-Hagel Resolution. We should not place U.S. climate
change diplomacy in a straightjacket that would be detrimental to our national interests.
We believe that the Senate approach to this issue is the prudent approach and we ask that
you recede to the Senate position with respect to this rider.
Sincerely,
Johnson
Gaze Miller
Maine Jand hadler
Louise Maughter MaoMah
Erist L. Engee
Nancy Pelosi
Gay R. Cakema
Sep.22. 1999 11:43AM
No.0597 P. 4/6
The Honorable Bill Young and David Obey
September 21, 1999
Page Three
Alcee L. Hadings
you lach
Edward Marlay
Jane L. Ran Barrett
Ron Kind
David Pine Rusl Holt
Lais Capps Josh B
Janny Baldin Trad Wall
Sep.22. 1999 11:43AM
No.0597 P.5/6
The Honorable Bill Young and David Obey
September 21, 1999
Page Four
Tom Lee
40
Frank Pay you m.c. Check
Gregory
Denne L. Kunimil
gran 7 hapolitores
Wilhom Delahomal
Michael E. Capuano Jan Ackeburshy
Rose L. J.Lew Johbus
linna G. Eshoo
Pete Stark
Sep: 22. 1999 11:44AM
No. 0597 P.6/6
The Honorable Bill Young and David Obey
September 21, 1999
Page Five
Robert A. Underword
advan Sith
Justing
CC:
The Honorable Harold Rogers
Chairman, House Appropriations Subcommittee on Commerce, Justice, State and
the Judiciary
The Honorable José Serrano
Ranking Member, House Appropriations Subcommittee on Commerce, Justice,
State and the Judiciary
The Honorable Sonny Callahan
Chairman, House Appropriations Subcommittee on Foreign Operations
The Honorable Nancy Pelosi
Ranking Member, House Appropriations Subcommittee on Foreign Operations
ID:
JUL 16'99
15:44 No 010 P.03
UMD
ponly
ONI
[FULL COMMITTEE PRINT]
Union Calendar No.
106TH CONGRESS
1ST SESSION
H.R.
[Report No. 106-
]
Making appropriations for foreign operations, export financing, and related
programs for the fiscal year ending September 30, 2000, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
. 1999
Mr. CALLAHAN, from the Committee on Appropriations, reported the following
bill: which was committed to the Committee of the Whole House on the
State of the Union, and ordered to be printed
A BILL
Making appropriations for foreign operations, export finane-
ing, and related programs for the fiscal year ending
September 30, 2000, and for other purposes.
1
Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 That the following sums are appropriated, out of any
4 money in the Treasury not otherwise appropriated, for the
ID:
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15:44 No 010 P.04
100
1 as its principal effect discrimination, against religious
2 groups or religious communities in the Russian Federation
3 in violation of accepted international agreements on
4 human rights and religious freedoms to which the Russian
5 Federation is a party.
6
GREENHOUSE GAS EMISSIONS
7
SEC. 568. (a) Funds made available in this Act to
8 support programs or activities the primary purpose of
9 which is promoting or assisting country participation in
10 the Kyoto Protocol to the Framework Convention on Cli-
11 mate Change (FCCC) shall only be made available subject
12 to the regular notification procedures of the Committees
13 01 Appropriations.
14
(b) The President shall provide a detailed account of
15 all Federal agency obligations and expenditures for cli-
16 mate change programs and activities. domestic and inter-
17 national obligations for such activities in fiscal year 2000,
18 and any plan for programs thereafter related to the imple-
19 mentation or the furtherance of protocols pursuant to, or
20 related to negotiations to amend the FCCC in conjunction
21 with the President's submission of the Budget of the
22 United States Government for Fiscal Year 2001: Pro-
23 vided, That such report shall include an accounting of ex-
24 penditures by agency with each agency identifying climate
25 change activities and associated costs by line item as pre-
26 sented in the President's Budget Appendix: Provided fur-
J. 57-696
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101
1 ther, That such report shall identify with regard to the
2 Agency for International Development, obligations and ex-
3 penditures by country or central program and activity.
4
WITHHOLDING ASSISTANCE TO COUNTRIES VIOLATING
5
UNITED NATIONS SANCTIONS AGAINST LIBYA
6
SEC. 569. (a) WITHHOLDING OF ASSISTANCE-Ex-
7 cept as provided in subsection (b), whenever the President
8 determines and certifies to Congress that the government
9 of any country is violating any sanction against Libya im-
10 posed pursuant to United Nations Security Council Reso-
11 lution 731, 748, or 883, then not less than 5 percent of
12 the funds allocated for the country under section 653(a)
13 of the Foreign Assistance Act of 1961 out of appropria-
14 tions in this Act shall be withheld from obligation or ex-
15 penditure for that country.
16
(b) EXCEPTION.-The requirement to withhold funds
17 under subsection (a) shall not apply to funds appropriated
18 in this Act for allocation under section 653(a) of the For-
19 eign Assistance Act of 1961 for development assistance
20 or for humanitarian assistance.
21
(c) WAIVER.-Funds may be provided for a country
22 without regard to subsection (a) if the President deter-
23 mines that to do so is in the national security interest of
24 the United States.
J. 57-696
ID:
AUG 16'99
11:52 No 002 P.06
Zen For Ups
II
Calendar No. 159
106TH CONGRESS
1ST SESSION
S. 1234
[Report No. 106-81]
Making appropriations for foreign operations, export financing, and related
programs for the fiscal year ending September 30, 2000, and for other
purposes.
IN THE SENATE OF THE UNITED STATES
JUNE 17, 1999
Mr. MCCONNELL, from the Committee on Appropriations, reported the
following original bill; which was read twice and placed on the calendar
A BILL
Making appropriations for foreign operations, export financ-
ing, and related programs for the fiscal year ending
September 30, 2000, and for other purposes.
1
Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 That the following sums are appropriated, out of any
4 money in the Treasury not otherwise appropriated, for the
5 fiscal year ending September 30, 2000, and for other pur-
6 poses, namely:
ID:
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109
1 Russian Federation, after 180 days from the date of en-
2 actment of this Act, unless the President determines and
3 certifies in writing to the Committee on Appropriations
4 and the Committee on Foreign Relations of the Senate
5 that the Government of the Russian Federation has imple-
6 mented no statute, executive order, regulation or similar
7 government action that would discriminate, or would have
8 as its principal effect discrimination, against religious
9 groups or religious communities in the Russian Federation
10 in violation of accepted international agreements on
11 human rights and religious freedoms to which the Russian
12 Federation is a party.
13
GREENHOUSE GAS EMISSIONS
14
SEC. 571. (a) Funds made available in this Act to
15 support programs or activities promoting or assisting
16 country participation in the Kyoto Protocol to the Frame-
17 work Convention on Climate Change (FCCC) shall only
18 be made available subject to the regular notification proce-
19 dures of the Committees on Appropriations.
20
(b) The President shall provide a detailed account of
21 all Federal agency obligations and expenditures for cli-
22 mate change programs and activities, domestic and inter-
23 national obligations for such activities in fiscal year 2000,
24 and any plan for programs thereafter related to the imple-
25 mentation or the furtherance of protocols pursuant to, or
26 related to negotiations to amend the FCCC in conjunction
8 1234 PCS
ID:
AUG 16'99
11:53 No 002 P.08
110
1 with the President's submission of the Budget of the
2 United States Government for Fiscal Year 2001: Pro-
3 vided, That such report shall include an accounting of ex-
4 penditures by agency with each agency identifying climate
5 change activities and associated costs by line item as pre-
6 sented in the President's Budget Appendix.
AID TO THE GOVERNMENT OF THE DEMOCRATIC
8
REPUBLIC OF CONGO
9
SEC. 572. None of the funds appropriated or other-
10 wise made available by this Act may be provided to the
11 Central Government of the Democratic Republic of Congo.
12
EXPORT FINANCING TRANSFER AUTHORITIES
13
SEC. 573. Not to exceed 5 per centum of any appro-
14 priation other than for administrative expenses made
15 available for fiscal year 2000 for programs under title I
'16 of this Act may be transferred between such appropria-
17 tions for use for any of the purposes, programs and activi-
18 ties for which the funds in such receiving account may
19 be used, but no such appropriation, except as otherwise
20 specifically provided, shall be increased by more than 25
21 per centum by any such transfer: Provided, That the exer-
22 cise of such authority shall be subject to the regular notifi-
23 cation procedures of the Committees on Appropriations.
8 1284 PCS
ID:
AUG 16'99
12:06 No 002 P.31
Nome
For Gps
II
106TH CONGRESS
1ST SESSION
H.R. 2606
IN THE SENATE OF THE UNITED STATES
AUGUST 4, 1999
Received
AN ACT
Making appropriations for foreign operations, export financ-
ing, and related programs for the fiscal year ending
September 30, 2000, and for other purposes.
1
Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
ID:
AUG 16'99
12:06 No 002 P.32
114
1
KYOTO PROTOCOL
2
SEC. 583. None of the funds appropriated by this Act
3 shall be used to propose or issue rules, regulations, de-
4 crees, or orders for the purpose of implementation, or in
5 preparation for implementation, of the Kyoto Protocol,
6 which was adopted on December 11, 1997, in Kyoto,
7 Japan, at the Third Conference of the Parties to the
8 United States Framework Convention on Climate Change,
9 which has not been submitted to the Senate for advice and
10 consent to ratification pursuant to article II, section 2,
11 clause 2, of the United States Constitution, and which has
12 not entered into force pursuant to article 25 of the Pro-
13 tocol.
14 CONTRIBUTIONS TO UNITED NATIONS:POPULATION FUND
15
SEC. 584. (1) LIMITATIONS ON AMOUNT OF CON-
16 TRIBUTION.-Of the amounts made available under
17 "International Organizations and Programs", not more
18 than $25,000,000 for fiscal year 2000 shall be available
19 for the United Nations Population Fund (hereinafter in
20 this subsection referred to as the "UNFPA").
21
(2) PROHIBITION ON USE OF FUNDS IN CHINA.-
22 None of the funds made available under "International
23 Organizations and Programs" may be made available for
24 the UNFPA for a country program in the People's Repub-
25 lic of China.
HR 2606 RDS
106TH CONGRESS
REPORT
let Session
HOUSE OF REPRESENTATIVES
106-254
FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED
PROGRAMS APPROPRIATIONS BILL, 2000
JULY 23, 1999.-Committed to the Committee of the Whole House on the State of
the Union and ordered to be printed
ID:
Mr. CALLAHAN, from the Committee on Appropriations,
submitted the following
REPORT
together with
ADDITIONAL VIEWS
PTo accompany HR 2606)
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, 2000, and for other purposes.
INDEX TO HILL AND REPORT
Page
AUG 16'99
AT
Report
Summary of the Bill
B
Committee Recommendations
4
Title I--Export and Investment Assistance:
Export-Import Bank of the United States
2
5
Overseas Private Investment Corporation
4
5
Trade and Development Agency
6
8
Title II-Balateral Bennomic Assistance:
Child Survival and Disease Programs Fund
7
7
Development Assistance
8
15
International Disaster Assistance
IS
27
Micro and Small Enterprise Development Pragram
13
28
Urban and Environmental Credit Pregram
14
29
Development Credit Authority
29
Payment to the Foreign Service Retirement and Disability Fund
14
30
12:07 No.002 P.33
AID Operating Expenses
14
30
58-020
74
75
Sec. 532, "Separate Accounts" is modified by deleting the change
Related Programs"; by removing the restriction on the obligation of
in permanent law that was contained in subsection (a)(5).
funds prior to March 1; by allowing $15,000,000 to be obligated
Sec. 537, "Funding Prohibition for Serbia" is modified by replac-
prior to June 1, 2000, subject to a Presidential certification regard-
ing the language from the 1999 act with a funding prohibition on
ing North Korean compliance with various agreements; by allowing
assistance to the Republic of Serbia, with an exemption for Kosova
$20,000,000 to be obligated after June 1, 2000 subject to a Presi-
and Montenegro, and for programs to support democratization.
dential certification regarding North Korean compliance with var-
Sec. 544, "Prohibition on Publicity or Propaganda" is modified by
ious agreements or proposed agreements; by prohibiting the use of
removing the limitation of $750,000 on funds to carry out the provi-
sections 451 or 614 of the Foreign Assistance Act to waive the pro-
sions of section 316 of Public Law 96-533.
visions of the section; by allowing for 8 Presidential waiver of the
Sec. 546, "Prohibition of Payments to United Nations Members"
certification requirements based on a finding that it is necessary
is modified by prohibiting the payment of costs for attendance of
due to vital national security interests; and by requiring a specified
ID:
another country's delegation at international conferences.
report from the Secretary of State on KEDO funding.
Sec. 552, "War Crimes Tribunal Drawdown" is modified to re-
Sec. 577, "African Development Foundation" is a new general
move the exemption for a notification regarding a drawdown for
provision that authorizes the investment of grant funds by grant-
the war crimes tribunals for Rwanda and the former Yugoslavia
ees, and allows for the Board of Directors to waive the $250,000
Sec. 559, "Limitation on Assistance for Haiti" is modified by TO-
project limitation contained in current law.
moving the previous conditions on assistance and substituting a
Sec. 579, "Notification on the Use of Operating Expenses" is a
policy framework and a semi-annual report regarding implements-
new general provision that prohibits the use of funds appropriated
tion of the policy framework.
under "Operating Expenses of the Agency for International Devel-
Sec. 566, "Restrictions on Assistance to Countries Providing
opment" to finance the construction (including architect and engi-
Sanctuary to Indicted War Criminals" is modified by listing Kosova
neering services), purchases, or long-term lease of offices except
as an entity in order to avoid the inadvertent imposition of sanc-
through the regular notification procedures of the Committees on
tions intended for Serbia.
Appropriations.
Sec. 667, "To Prohibit Foreign Assistance to the Government of
Sec. 580, "Iraq Opposition" is modified by providing a funding
the Russian Federation Should It Enact Laws Which Would Dis-
ceiling of $10,000,000 for assistance to the Iraq democratic opposi-
criminate Against Minority Faiths" is modified by changing the
tion and limiting funding to groups authorized under the Iraq Lib-
section heading to refer to the Russian Federation, rather than to
eration Act (Public Law 105-338).
Russia.
Sec. 581, "AID Budget Submission" is a new general provision
Sec. 568, "Greenhouse Gas Emissions" is modified by requiring
detailing requirements for AID's fiscal year 2001 budget justifica-
notification for programs and activities "the primary purpose of
tion.
AUG
which is" promoting or assisting country participation in the Kyoto
Sec. 583, "Kyoto Protocol" is a new general provision prohibiting
Protocol, and by requiring the Agency for International Develop-
funds in this Act from being used to propose or issue rules, regula-
ment to report on expenditures for climate change activities by
tions, decrees or orders for implementation of the Kyoto Protocol.
country or central program or activity.
Sec. 584, "Contribution to United Nations Population Fund" is R
66.91
Sec. 571, "Assistance for the Middle East" is modified by reduc-
new general provision limiting funding for UNFPA to $25,000,000
ing the cap on Middle East spending from $5,402,850,000 to
and imposing restrictions on the use of funds in China.
$5,318,150,000, but by exempting $100,000,000 for Jordan from the
calculation made to arrive at the total Middle East spending cap.
PROVISIONS RETAINED FROM FISCAL YEAR 1999
Sec. 573, "Cambodia" combines an existing general provision re-
The following general provisions from the fiscal year 1999 act are
lating to multilateral assistance for Cambodia with language pro-
retained in the fiscal year 2000 act unchanged except for technical
12:07
hibiting bilateral assistance for the Government of Cambodia ex-
corrections, references to fiscal year 2000, and new section num-
cept humanitarian assistance, including basic education.
bers where appropriate:
Sec. 574, "Authorization for Population Planning" retains a fund-
Sec. 501. Obligations During Last Month of Availability.
ing limitation of $385,000,000 for population planning activities
Sec. 503. Limitation on Residence Expenses.
that was included in the 1999 act, but deletes a provision that
Sec. 504. Limitation on Expenses.
would have apportioned such funds on a. monthly basis at a level
Sec. 505. Limitation OD Representational Allowances.
of not to exceed 8.34 percent of the total available for such activi-
Sec. 506. Prohibition on Financing Nuclear Goods.
ties.
Sec. 507. Prohibition Against Direct Funding of Certain Coun-
Sec. 575, Foreign Military Training Report is modified by ex-
tries.
empting training associated with Foreign military sales and for
Sec. 508. Military Coups.
NATO members from the scope of the report.
Sec. 509. Transfers Between Accounts.
Sec. 576, "Korean Peninsula Energy Development Organization",
Sec. 510. Deobligation/Reobligation Authority.
is modified-by limiting KEDO funding to $35,000,000 from funds
Sec. 511. Availability of Funds.
ided under "Nanproliferation, Anti-Terrorism, Demining and
Sec. 512. Limitation on Assistance to Countries in Default.
JUL-13-1999 12:00
P.02/02
BaB
73C-7020
Bartholomew, Carolyn
Carel Clamen
From:
Albright. Craig
Sent:
Monday. July 12. 1999 4:00 PM
To:
Barthelomew. Carolyn
Subject:
Climate Change
Carolyn:
think bills. the latter being added by amendment at full committee, without objection. Let me know what you
Intenor Here las the language from FYes VA-HUD. As I mentioned, this language is currently included in the FY00 Ag and
Have a great day and I'll talk a you soon. Thanksi
Craig
"Sec.
None of the funds appropriated by this Act shall be used to propose or issue rules,
regulations, decrees, or orders for the purpose of implementation, or in preparation for implementation,
of the Kyoto Protocol which was adopted on December 11, 1997, in Kyow, Japan at the Third
Conference of the Parties to the United Nations Framework Convention on Climate Change, which has
clause 2, of the United States Constitution, and which has not entered into force pursuant to article 25 of
not been submitted to the Senate for advice and consent to ratification pursuant to article II, section 2,
the Protocol."
Page 1
TOTAL P.02
07/19/99
13:35
202 647 9667
STATE LEG AFF.
003
ADDITIONAL TALKING POINTS ON KNOLLENBERG AMENDMENT
WHEN THIS LANGUAGE WAS ADDED TO THE VA-HUD APPROPRIATIONS BILL LAST
YEAR, IT WAS MY UNDERSTANDING FROM THE DEBATE AND DISCUSSION AT THAT
TIME THAT IT WAS INTENDED SOLELY TO BLOCK ACTIONS TO IMPLEMENT THE
KYOTO PROTOCOL IN ADVANCE OF SENATE ADVICE AND CONSENT.
THE SENATE HAS MADE IT CLEAR THROUGH THE BYRD-HAGEL RESOLUTION, THAT IT
WILL NOT GIVE ADVICE AND CONSENT TO THE KYOTO PROTOCOL UNLESS AND
UNTIL WE RECEIVE SUBSTANTIAL COMMITMENTS FROM DEVELOPING COUNTRIES
FOR GREENHOUSE GAS REDUCTIONS.
I AM CONCERNED THAT THERE IS AN ATTEMPT HERE TO SET UP A CATCH-22
WHEREBY WE CAN'T PROCEED WITH DOMESTIC EFFORTS TO REDUCE GREENHOUSE
GAS EMISSIONS UNTIL WE SEE MORE PROGRESS FROM DEVELOPING COUNTRIES, BUT
IF THE ADMINISTRATION ENGAGES THESE COUNTRIES IN DISCUSSIONS OR
PROGRAMS TO REDUCE GREENHOUSE GAS EMISSIONS, THEY WILL BE ACCUSED OF
TRYING TO IMPLEMENT THE KYOTO PROTOCOL THROUGH THE BACK DOOR.
I AM INFORMED THAT NEITHER AID NOR THE STATE DEPARTMENT HAS ANY
INTENTION OF TAKING ACTIONS TO IMPLEMENT THE KYOTO PROTOCOL
PREMATURELY. BUT WE NEED TO MAKE IT CLEAR THAT THIS PROVISION WILL NOT
RESTRICT THESE AGENCIES FROM AGGRESSIVELY PURSUING THE UNITED STATES'
INTEREST IN INCREASING DEVELOPING COUNTRY PARTICIPATION IN EFFORTS TO
REDUCE GREENHOUSE GAS EMISSIONS. THAT IS NOT KYOTO IMPLEMENTATION, IT IS
JUST GOOD FOREIGN POLICY.
07/19/99
13:34
202 647 9667
STATE LEG AFF.
002
TALKING POINTS
The inclusion of language in the bill related to the
Kyoto Protocol is unnecessary because the Administration
has not, and has repeatedly stated that it will not, take
any actions solely intended to implement the Kyoto
Protocol unless and until the Senate approves that
protocol.
Any actions funded by this bill that the Administration
undertakes with developed and developing countries to
reduce greenhouse gas emissions would be fully consistent
with the UN Framework Convention on Climate Change and
existing statutory authority.
The State Department and AID are aggressively pursuing
developing country participation in reducing greenhouse
gas emissions, consistent with the Byrd-Hagel Resolution
and President Clinton's decision that the Kyoto Protocol
will not be submitted until we achieve meaningful
participation from these countries. It would be
unfortunate if overzealous interpretation of the
Knollenberg language hampered these important efforts.
(If the Subcommittee is determined to include language in
the bill, we would expect that the intent is not to go
beyond the Knollenberg Amendment of last year, and to
include report language that states the intent is solely to
prevent the issuance of federal regulations designed solely
for the purpose of Kyoto Protocol implementation.)
JUL-19-1999 19:27
P.03/03
TALKING POINTS
The inclusion of language in the bill related to the
Kyoto Protocol is unnecessary because the Administration
has not, and has repeatedly stated that it will not, take
any actions solely intended to implement the Kyoto
Protocol unless and until the Senate approves that
protocol.
Any actions funded by this bill that the Administration
undertakes with developed and developing countries to
reduce greenhouse gas emissions would be fully consistent
with the UN Framework Convention on Climate Change and
existing statutory authority.
The State Department and AID are aggressively pursuing
developing country participation in reducing greenhouse
gas emissions, consistent with the Byrd-Hagel Resolution
and President Clinton's decision that the Kyoto Protocol
will not be submitted until we achieve meaningful
participation from these countries. It would be
unfortunate if overzealous interpretation of the
Knollenberg language hampered these important efforts.
(If the Subcommittee is determined to include language in
the bill, we would expect that the intent is not to go
beyond the Knollenberg Amendment of last year, and to
include report language that states the intent is solely to
prevent the issuance of federal regulations designed solely
for the purpose of Kyoto Protocol implementation.)
TOTAL P.03
JUL-19-1999 19:26
P.02/03
ADDITIONAL TALKING POINTS ON KNOLLENBERG AMENDMENT
WHEN THIS LANGUAGE WAS ADDED TO THE VA-HUD APPROPRIATIONS BILL LAST
YEAR, IT WAS MY UNDERSTANDING FROM THE DEBATE AND DISCUSSION AT THAT
TIME THAT IT WAS INTENDED SOLELY TO BLOCK ACTIONS TO IMPLEMENT THE
KYOTO PROTOCOL IN ADVANCE OF SENATE ADVICE AND CONSENT.
THE SENATE HAS MADE IT CLEAR THROUGH THE BYRD-HAGEL RESOLUTION, THAT IT
WILL NOT GIVE ADVICE AND CONSENT TO THE KYOTO PROTOCOL UNLESS AND
UNTIL WE RECEIVE SUBSTANTIAL COMMITMENTS FROM DEVELOPING COUNTRIES
FOR GREENHOUSE GAS REDUCTIONS.
I AM CONCERNED THAT THERE IS AN ATTEMPT HERE TO SET UP A CATCH-22
WHEREBY WE CAN'T PROCEED WITH DOMESTIC EFFORTS TO REDUCE GREENHOUSE
GAS EMISSIONS UNTIL WE SEE MORE PROGRESS FROM DEVELOPING COUNTRIES, BUT
IF THE ADMINISTRATION ENGAGES THESE COUNTRIES IN DISCUSSIONS OR
PROGRAMS TO REDUCE GREENHOUSE GAS EMISSIONS, THEY WILL BE ACCUSED OF
TRYING TO IMPLEMENT THE KYOTO PROTOCOL THROUGH THE BACK DOOR.
I AM INFORMED THAT NEITHER AID NOR THE STATE DEPARTMENT HAS ANY
INTENTION OF TAKING ACTIONS TO IMPLEMENT THE KYOTO PROTOCOL
PREMATURELY. BUT WE NEED TO MAKE IT CLEAR THAT THIS PROVISION WILL NOT
RESTRICT THESE AGENCIES FROM AGGRESSIVELY PURSUING THE UNITED STATES'
INTEREST IN INCREASING DEVELOPING COUNTRY PARTICIPATION IN EFFORTS TO
REDUCE GREENHOUSE GAS EMISSIONS. THAT IS NOT KYOTO IMPLEMENTATION IT IS
JUST GOOD FOREIGN POLICY.
JUL-20-1999 10:01
USAID/LPA
202 647 8321
P.04/04
TALKING POINTS
The inclusion of language in the bill related to the
Kyoto Protocol is unnecessary because the Administration
has not, and has repeatedly stated that it will not, take
any actions solely intended to implement the Kyoto
Protocol unless and until the Senate approves that
protocol.
Any actions funded by this bill that the Administration
undertakes with developed and developing countries to
reduce greenhouse gas emissions would be fully consistent
with the UN Framework Convention on Climate Change and
existing statutory authority.
The State Department and AID are aggressively pursuing
developing country participation in reducing greenhouse
gas emissions, consistent with the Byrd-Hagel Resolution
and President Clinton's decision that the Kyoto Protocol
will not be submitted until we achieve meaningful
participation from these countries. It would be
unfortunate if overzealous interpretation of the
Knollenberg language hampered these important efforts.
(If the Subcommittee is determined to include language in
the bill, we would expect that the intent is not to go
beyond the Knollenberg Amendment of last year, and to
include report language that states the intent is solely to
prevent the issuance of federal regulations designed solely
for the purpose of Kyoto Protocol implementation.)
TOTAL P.04
JUL-20-1999 10:00
USAID/LPA
202 647 8321
P.03/04
ADDITIONAL TALKING POINTS ON KNOLLENBERG AMENDMENT
WHEN THIS LANGUAGE WAS ADDED TO THE VA-HUD APPROPRIATIONS BILL LAST
YEAR, IT WAS MY UNDERSTANDING FROM THE DEBATE AND DISCUSSION AT THAT
TIME THAT IT WAS INTENDED SOLELY TO BLOCK ACTIONS TO IMPLEMENT THE
KYOTO PROTOCOL IN ADVANCE OF SENATE ADVICE AND CONSENT.
THE SENATE HAS MADE IT CLEAR THROUGH THE BYRD-HAGEL RESOLUTION, THAT IT
WILL NOT GIVE ADVICE AND CONSENT TO THE KYOTO PROTOCOL UNLESS AND
UNTIL WE RECEIVE SUBSTANTIAL COMMITMENTS FROM DEVELOPING COUNTRIES
FOR GREENHOUSE GAS REDUCTIONS.
I AM CONCERNED THAT THERE IS AN ATTEMPT HERE TO SET UP A CATCH-22
WHEREBY WE CAN'T PROCEED WITH DOMESTIC EFFORTS TO REDUCE GREENHOUSE
GAS EMISSIONS UNTIL WE SEE MORE PROGRESS FROM DEVELOPING COUNTRIES, BUT
IF THE ADMINISTRATION ENGAGES THESE COUNTRIES IN DISCUSSIONS OR
PROGRAMS TO REDUCE GREENHOUSE GAS EMISSIONS, THEY WILL BE ACCUSED OF
TRYING TO IMPLEMENT THE KYOTO PROTOCOL THROUGH THE BACK DOOR
1 AM INFORMED THAT NEITHER AID NOR THE STATE DEPARTMENT HAS ANY
INTENTION OF TAKING ACTIONS TO IMPLEMENT THE KYOTO PROTOCOL
PREMATURELY. BUT WE NEED TO MAKE IT CLEAR THAT THIS PROVISION WILL NOT
RESTRICT THESE AGENCIES FROM AGGRESSIVELY PURSUING THE UNITED STATES'
INTEREST IN INCREASING DEVELOPING COUNTRY PARTICIPATION IN EFFORTS TO
REDUCE GREENHOUSE GAS EMISSIONS. THAT IS NOT KYOTO IMPLEMENTATION, IT IS
JUST GOOD FOREIGN POLICY.
JUL-20-1999 19:49
USAID/LPA
202 647 8321 P.01/01
Knollenberg Amendment
Description/background: Rep. Joe Knollenberg (R-MI) intends to offer language that he
attached to the VA-HUD Appropriation bill last year. The amendment prohibits the use of funds
provided in the bill "to propose or issue rules, regulations, decrees, or orders for the purpose of
implementation, or in preparation for the implementation, of the Kyoto Protocol." This
language has been interpreted by the Administration only to apply to activities of a regulatory
nature, and this view is supported by the legislative history of the provision.
Although the Administration has no intention of implementing the Kyoto Protocol, or taking
actions to prepare for its implementation, prior to its ratification, it is unclear how the
Knollenberg language would apply to State Department activities funded in the Foreign
Operations Appropriations Act. The only Kyoto-related activities that the Department funds via
the Foreign Operations bill are the United States' contributions to the International Panel on
Climate Change (IPCC) and the UN Framework Convention on Climate Change, which was
ratified by the U.S. in 1992. We do not control these funds after they are conveyed to these
entities, and none of the funds are provided for purposes prohibited by the Knollenberg language.
However, opponents of the Kyoto Protocol are likely to interpret this language more broadly to
restrict anything that they see as furthering that protocol. Even if such broad interpretations are
on shaky legal ground, the attachment of this language to this and other appropriations is likely
to have a chilling effect on activities by the Department of State, AID, and other agencies, which
are designed to promote greater greenhouse gas reductions by developing countries. Greater
developing country participation, in turn, is a key element of satisfying the Byrd-Hagel
resolution, which stated in effect that the Senate would not give advice and consent to the Kyoto
Protocol until developing countries had given specific scheduled commitments to reduce
greenhouse gas emissions.
Lastly, if Knollenberg is interpreted to include the elaboration of international rules to give effect
to the Kyoto Protocol, it could have disastrous consequences on our ability to affect the future
direction of international climate change policy. For example, a broad interpretation of
Knollenberg might consider a U.S. position paper on how the Clean Development Mechanism
called for in the Kyoto Protocol should work to be "rules. in preparation for implementation, of
the Kyoto Protocol." Such an interpretation does not serve the United States interest, and it
raises substantial questions of infringement on the foreign policy-making prerogatives of the
Executive Branch under Article II of the Constitution.
Department position: Oppose.
OPTIONAL FORM 99 (7-90)
FAX TRANSMITTAL
# of pages
To Julie Anderson
From MARK
1
Dept/Agency
Phone # 712 7004
Fax # 395-2342
Fax #
NSN 7540-01-317-7368
5099-101
GENERAL SERVICES ADMINISTRATION
TOTAL P.01
JUL-19-1999 19:30
USAID/LPA
202 647 8321
P.03/03
Talking Points on Knollenberg Amendment
U.S. Agency for International Development
Rep. Knollenberg (R-PA) intends to offer the following amendment to the FY
2000 Foreign Operations Appropriations Act:
None of the funds appropriated by this Act shall be used to propose or
issue rules, regulations, decrees, or orders for the purpose of
implementation, or in preparation for implementation of the Kyoto
Protocol which was adopted on Dec. 11, 1997, in Kyoto, Japan at the
Third Conference of th Parties to the U.N. Framework Convention on
Climate Change, which has not been submitted to the Senate for
advice and consent to ratification pursuant to article II, section 2,
clause 2, of the U.S. Constitution, and which has not entered into
force pursuant to article 25 of the Protocol.
This amendment is unnecessary for two reasons:
1. The Administration has assured Congress that no funds will be spent to
implement the Kyoto Protocol, which has not been ratified by the U.S. Senate.
2. The Committee has already adopted language which speaks to the issue of the
Kyoto Protocol. Sec. 568(a) provides that "Funds made available in this Act to
support programs or activities the primary purpose of which is promoting or
assisting country participation in the Kyoto Protocol to the Framework
Convention on Climate Change (FCCC) shall only be made available subject to
the regular notification procedures of the Committees on Appropriations."
TOTAL P.03
AID Climate Change Testimony
8:00 a.m., July 22, 1999
Discussion Paper
Possible Criticisms
AID's climate change programs violate the
Administration's pledges against backdoor implementation
of the Kyoto Protocol
The programs are inappropriately tied to the Kyoto
negotiations rather than the agencies sustainable
development goals
AID's climate change programs in India are inappropriate
(and possibly illegal) given India's nuclear activities.
General Approach
AID should defend vigorously its existing climate change
programs, including its India program, on the grounds that
they are in the national interest, within its statutory
authority, consistent with the administration's pledge to
avoid premature implementation of Kyoto and tied to
sustainable development.
AID should not defend its climate activities primarily
on energy and conservation grounds.
AID should refute the notion that its programs either
"implement Kyoto" or represent "preparation" for
implementation of Kyoto. Implementation is inherently
domestic, while AID activities are international.
Absent OLC guidance, AID should avoid a Constitutional
claim that its programs fall within the Executive
Branches' inherent foreign policy powers.
AID should seek to preserve its flexibility to engage in
climate change activities of the type it has already
initiated, including programs related to issues in the
multilateral climate change negotiations.
In this regard, AID should oppose the Knollenberg amendment
to the foreign operations bill on the ground that it is
unnecessary, and should resist vigorously efforts to expand
2
that amendment to limit AID's authority to conduct its
existing climate change programs.
AID need not define (i) "backdoor implementation,"
(ii) "meaningful participation," (iii) the Administration's
overall interpretation of the "Knollenberg amendment" or
(iv) other general climate change issues, except to the
extent necessary to defend AID programs. (AID should feel
free to refer questions on these general issues to the
White House and State Department.)
AID should defend programs that have some arguable
connection to the Kyoto negotiations - such as some
assistance to Kazakhstan and workshops on CDM -- on the
grounds that the programs:
(i)
further legitimate sustainable development
goals, including climate change,
(ii)
are consistent with the Framework Convention on
Climate Change, and
(iii)
support our international climate change
objectives, including with respect to the
further elaboration of the modalities for the
Kyoto Protocol.
AID should avoid speculating about what development
assistance activities might cross the line and constitute
"backdoor implementation."
AID should defend its India program as being within its
authority and in the national interest, but should defer to
the White House and State Department questions regarding
the lifting of any policy-based or statutory sanctions on
India, including with respect to climate change programs.
SEP-20-99 12:33 FROM:OMB LA
ID:
PAGE 2/14
PRESIDENT
STATE STRECUTIVE sale, " OFFICE OFFICERINT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON. ac. 20503
THE DIRECTOR
September 17, 1999
The Honorable C.W. Bill Young
Chairman
Committee on Appropriations
U.S. House of Representatives
Washington, D.C. 20515
Dear Mr. Chairman:
The purpose of this letter is to provide the Administration's views on H.R. 2606, the
Foreign Operations, Export Financing, and Related Programs Appropriations Bill, FY 2000, as
passed by the House and by the Senate. As you develop the conference version of the bill, your
consideration of the Administration's views would be appreciated.
The allocation of discretionary resources available to the House and Senate under the
Congressional Budget Resolution is insufficient to make the necessary investments that our
citizens need and expect. The President's FY 2000 Budget proposes levels of discretionary
spending that meet such needs while conforming to the Bipartisan Budget Agreement by making
savings proposals in mandatory and other programs available to help finance this spending.
Congress has approved and the President has signed into law nearly $29 billion of such offsets in
appropriations legislation since 1995. The Administration urges the Congress to consider such
proposals as the FY 2000 appropriations process moves forward.
If the Congress were to enact a bill that does not resolve the significant funding and
language problems in the current House and Senate versions of the bill, as discussed in this letter
and its enclosure, the President's senior advisers would recommend that he veto the bill
Insufficient Overall Funding
The versions of the bill passed by the House and Senate for Foreign Operations are
approximately S1.9 billion, or 14 percent, below the program level requested by the President.
Funding at this level would seriously impair the President's ability to conduct an effective
foreign policy and is inadequate to maintain America's leadership around the world. It would
inevitably require deep reductions from previously enacted levels for programs managed by the
Departments of State and the Treasury, the Agency for International Development, and others.
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Support for Needed Flexibility
The Administration appreciates the continuing House support for minimizing earmarks
and restrictions in this bill. The Senate restrictions, when combined with the reduced funding
level, would seriously limit the President's flexibility to conduct an effective foreign policy. For
example, the Senate earmark to train and equip a security force in Kosovo would reduce the
Administration's flexibility, and given current intra-Kosovar rivalries. could threaten the lives of
American military and civilian peacekeepers. The designation of Serbia as a terrorist state would
have the unintended consequence of cutting off aid to Front Line and other states, even if they
provide only humanitarian assistance to the Former Republic of Yugoslavia. Furthermore, the
Senate's approach provides no support for the State Department's component of the Enhanced
Threat Reduction Initiative (ETRI) to reduce proliferation threats. The Administration
appreciates the Senate bill language and House report language clarifying that a 50-percent
reduction in aid to the government of Russia would apply only to the central government. Both
the House and Senate versions of the bill contain this provision, which would tie the reduction to
certification that Russia is not assisting Iran's development of nuclear and ballistic missile
technologies. However, the Senate, unlike the House, does not exempt programs that are
designed to achieve those nonproliferation goals.
Family Planning
The Administration notes its appreciation to the House for funding the United Nations
Population Fund (UNFPA). UNFPA is a vital program, which provides valuable voluntary
family planning and other services in over 160 countries.
Yet, the Administration strongly opposes the "Mexico City" policy provision included in
the House-passed bill, which would prohibit the U.S. Government from providing funds to
foreign non-governmental organizations if these organizations use any of their own funding from
non-U.S. Government sources for abortion-related services or advocacy. The Administration
opposes these restrictions, which would deny funding to the most experienced and qualified
family planning and maternal and child health care providers. In prior years, the Administration
has made clear that the President would veto the bill if it contained the "Mexico City" language.
The President took such action in 1998 when he vetoed the State Department authorization bill.
Should this language be included in the final bill presented to the President, the President would
veto the bill.
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We look forward to working with the conferees to address our mutual concerns.
Additional Administration comments are provided in the enclosure.
Sincerely,
Jacob J. Lew
Director
Enclosure
Identical Letter Sent to The Honorable C. W. Bill Young,
The Honorable David R. Obey, The Honorable Sonny Callahan,
The Honorable Nancy Pelosi, The Honorable Ted Stevens,
The Honorable Robert C. Byrd, The Honorable Mitch McConnell,
and The Honorable Patrick J. Leahy
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Enclosure
(Conference Committee)
ADDITIONAL CONCERNS
H.R. 2606 - FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED
PROGRAMS APPROPRIATIONS BILL, FY2000
(AS PASSED BY THE HOUSE AND BY THE SENATE)
The Administration looks forward to working with the conferees to address the following
additional concerns:
Multilateral Development Banks. The President's request, excluding arrears payments,
represents a 40 percent reduction from the levels of scheduled payments sought for the
Multilateral Development Banks (MDBs) in the mid-1990s. Both the House and Senate
bills, which cut this already reduced level by 35 percent and 32 percent respectively, fall
unacceptably short in funding the President's request. These severe cuts, and the lack of
full funding for arrearage payments, would erode much of the progress made in the FY
1998 and FY 1999 appropriations bills in meeting the past-due and continued obligations
of the United States to these institutions, and would erode our ability to get approval of
important institutional reforms.
International Development Association (IDA). The Administration is particularly
disappointed with the IDA reductions. The requested funds are for the first year
of the IDA-12 replenishment, which includes reforms supported by the United
States for many years and includes no further IDA funding for China. While
recognizing congressional concerns about the World Bank's approval of an IDA-
loan for the Western Poverty Project in China, the Administration urges the
conferees to restore IDA's full funding of $803 million, as this is the single most
important global facility for assisting the world's poorest nations.
Global Environment Facility (GEF). The Administration urges the conferees to
restore full funding of S143 million for GEF, the most important global facility
for promoting sound environmental policy in developing countries. This request
includes $107.5 million in initial funding for a new replenishment that includes
agreement on major institutional reforms.
African Development Bank (AfDB) & Fund(AfDF). The Administration supports
the Senate decision to provide the full $5 million requested for the African
Development Bank and urges the conferees to provide the entire requested
amount of $127 million for the Fund. Both of these requests include initial
funding for new replenishments, which include agreement on major institutional
reforms.
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Multilateral Investment Guaranty Agency (MIGA). The Administration supports
the Senate decision to provide the full $10 million requested for MIGA. The
requested amount represents the first scheduled payment to a general capital
increase
Inter-American Investment Corporation (IIC) & Multilateral Investment Fund
(MIF). The Administration calls upon the conferees to provide the $25 million
and the $29 million requested for ПС and MIF, respectively. These programs
play important roles in encouraging private sector development in Latin America
The request for the IIC is the initial funding for a new replenishment, which
includes significant institutional reforms.
Asian Development Fund (ADF). The Administration urges the conferees to
restore the ADF's full funding of $177 million, which funds social and economic
development programs in Asia's least developed countries.
Kosovo and the Southeastern Europe Initiative. The Administration appreciates the
Senate support for funding above the original request, but prefers the House language,
which does not place earmarks on the Support for Eastern Europe Democracy (SEED)
account. These earmarks would eliminate the President's ability to meet unanticipated
economic stabilization needs in the war-ravaged Balkan region. For example, the funding
limitations on Bosnia would increase the risk of weakening the peace established in that
country as the Kosovo conflict subsides. Furthermore, the Administration is strongly
opposed to language that could be interpreted as requiring the training and equipping of
the Kosovo Liberation Army (KLA), a policy prescription completely at odds with the
recent agreement by the KLA to disam under NATO supervision. If adopted, we believe
such a provision could threaten the lives of U.S. military and civilian peacekeepers and
humanitarian care providers, especially in light of existing intra-Kosovar rivalries.
The Administration has also begun consultations with Congress on additional funding
requirements for Foreign Operations accounts to respond to the unanticipated costs of
peace implementation in Kosovo and to improve prospects for peace in the rest of the
Balkans. The Administration appreciates continuing congressional interest in this region
and the vital U.S. security interests at stake. The programs under consideration would
include police training, elections and democratic reforms, investigation and prosecution
of war crimes, technical assistance to promote economic revitalization in Kosovo, and
assistance to promote economic reform and private investment in Southeastern Europe.
Assistance to the New Independent States (NIS). The Administration strongly supports
the language of the House passed-bill, which reflects the ongoing efforts to reduce
earmarks and restrictions on our assistance to this region. Reducing such restrictions
enables the Administration to target assistance, thus maximizing its effectiveness,
especially in working with pro-reform governments, non-governmental democratic
forces. and the private sector. The Administration praises the House and the Senate for
clarifying that restrictions on aid to Russia do not apply to local governments.
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The Administration strongly opposes the insufficient funding levels provided by the
Senate ($780 million) and the House ($725 million), both of which fall far short of the
requested $1,032 million but also below the FY 1999 enacted level of $847 million. The
Administration advanced the Expanded Threat Reduction Initiative (ETRI) on the basis
that the economic problems in Russia and the rest of the Independent States, which have
created hardships for millions of people and heightened the risk of regional instability and
proliferation of weapons of mass destruction and related expertise, call for increased
rather than decreased efforts. The State Department's portion of ETRI is a vital and
complementing component of a multi-agency undertaking. Although the Senate has
endorsed ETRI and Foreign Operations funding for it, no Foreign Operations resources
have been made available by either the Senate or the House. This places threat reduction
programs that are in our immediate national security interests -- such as accelerated
destruction of Russian nuclear and chemical weapons, nonproliferation and enhanced
export control efforts, and withdrawal of Russian military forces from neighboring
countries - in competition with other essential programs that will help secure our long-
term interests in the region. Such programs include: small business development in the
regional initiatives, exchange programs designed to develop a new generation of pro-
reform leaders, and institutional partnerships.
Korean Peninsula Energy Development Organization (KEDO). The Administration
strongly objects to provisions in both bills that could jeopardize our ability to fulfill
commitments under the Agreed Framework and damage our nonproliferation policy on
the peninsula. Proposed cuts of $20 million in the House and $15 million in the Senate to
the Administration's funding request of $55 million could prevent the United States from
fulfilling its commitment to ensure provision of heavy fuel oil to North Korea. Both bills
introduce new Presidential certification requirements that go well beyond those to which
the Administration has agreed and have been legislated in the past and that could make it
extremely difficult to carry out our commitments. The Senate requirement for a 45-day
delay in Presidential certification could seriously undermine our funding schedule for
KEDO. Finally, we strongly oppose the prohibition in the Senate bill on the use of
Economic Support Funds for KEDO and similar provisions in the House bill restricting
the President's authorities to provide added funds for KEDO should it be deemed in the
national interest
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Wve River and Middle Eastern Assistance The Administration welcomes the House
provision of the entire FY 2000 request for additional assistance for Jordan. However,
we are concerned that the House does not provide the remaining $400 million, and that
the Senate provides none of the $500 million requested by the President for FY 2000 to
support the Wye River Agreement. Similary, neither house has provided the remaining
$800 million of funds requested as an FY 1999 supplemental appropriation for this
purpose. The Administration stresses that this funding is essential to support the renewed
commitment of the Israelis and Palestinians to implement Wye and achieve a historic
permanent status agreement over the next year. The renewed dedication of the parties
was demonstrated with the signing of the Sharm el Sheikh memorandum.
Implementation of the agreement resumed immediately, with the first round of prisoner
releases, followed by the next stage of Israeli redeployments in the West Bank, and the
relaunching of permanent status negotiations on September 13, 1999. The Israelis and
Palestinians have committed to achieving a framework agreement on the most difficult
permanent status issues by February 2000 and a final permanent status agreement by
September 2000. To support them as they take these difficult decisions over a condensed
time frame, the Administration believes it is essential for Congress to act immediately
and provide the full amount of the President's Wye request.
The Administration welcomes the efforts of both the House and Senate to continue to
ramp down the traditional levels of assistance to Israel and Egypt but continues to support
the levels advanced in the President's request. The Administration urges the conferees to
continue to recognize Egypt's crucial role in the assisting the Israelis and Palestinians in
the peace process. The Administration reiterates its offer to work with the Congress in
the review and development of efforts supporting Egypt's advancement of peace in the
region.
Economic Support Fund. We are concerned that both the House and Senate significantly
reduce the President's non-Wye River request for the Economic Support Fund, the House
by $192 million and the Senate by $194 million. These reductions would significantly
constrain the President's ability to respond to a host of threats and new crises around the
world. These cuts would force the reduction of programs intended to increase political
stability and democratization in Africa; support democracy efforts in Guatemala, Peru,
and Ecuador: and, bolster democratic and economic reform in Asia, as well sustain
implementation of the Belfast Good Friday Accord.
Debt Reduction. The Administration urges the conferees to fully fund the President's
original request of $120 million for debt reduction programs. Failure to do so would
cripple our ability to fund the bipartisan debt for environment program that was enacted
by the Congress last year and would damage our ability to contribute to the HIPC Trust
Fund, which is an essential component of current debt reduction programs as well as of
the Cologne debt initiative.
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The expanded Heavily Indebted Poor Countries (HIPC) initiative is supported by a wide
range of religious and charitable organizations, and was agreed to by the G-7 in Cologne.
It is critical that the United States demonstrate its leadership by providing the necessary
funding support for the first year of this initiative, which enjoys bipartisan and
international support.
Peacekeeping Operations. The Senate's $50 million and the House's $53 million
reduction in the President's request for voluntary peacekeeping operations would
decrease funds available for Organization for Security and Cooperation in Europe
(OSCE) missions in Bosnia and Croatia; significantly reduce assistance for the African
Crisis Response Initiative and African regional peacekeeping operations, such as
ECOMOG, and eliminate funding for Haiti. In addition. such a substantial reduction
would raise international concern that the United States may not support its fair share of
the international police force that will help to implement the Kosovo peace settlement, for
which new resources will be needed. Adequate funding is also critical for support of
regional peacekeeping activities such as ECOMOG that has helped to maintain stability
and avert the kind of humanitarian disasters that require much greater expenditure of
resources.
International Narcotics and Crime. Both the House and the Senate versions of the bill
reduce the Administration's request of $295 million, the House by $10 million and the
Senate by $80 million. A cut of the magnitude enacted by the Senate would significantly
impact programs designed to implement the National Drug Control Strategy, including
alternative development efforts in Columbia, Peru, and Bolivia, and would reduce our
support for the U.N. Drug Control Program and other important multilateral anti-
narcotics efforts. It would also significantly undercut the President's new International
Crime Control Strategy, which was released in May 1998.
International Organizations and Programs/United Nations Population Fund. The
Administration is strongly committed to the global sustainable development programs in
the International Organizations and Programs (IO&P) account, and in particular to the
population and reproductive health programs in the United Nations Population Fund
(UNFPA). The Administration appreciates the House's recognition that it would be
counterproductive to prohibit funding for UNFPA, which provides voluntary family
planning and other services to over 160 countries, because of its operations in China, and
urges the Conferees to adopt this approach. We are concerned. however, that the overall
level for International Organizations and Programs, in both the House and Senate, would
be insufficient to allow for an adequate contribution for UNFPA programs and other
important multilateral development activities that save lives, promote healthy families,
and otherwise serve the national interest.
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Nonproliferation. Anti-Terrorism. Demining. and Related Programs Both the House and
the Senate have reduced the Administration's request of $231 million for critical
nonproliferation and anti-terrorism programs in this account, the House by $49 million
and the Senate by $56 million. In addition to the request for KEDO addressed above,
both the House and Senate would provide only $5 million of the $15 million request for
export control assistance, a vital program for improving nonproliferation capabilities in
the NIS and elsewhere. The Administration opposes proposals in both bills to eliminate
the funding request of $10 million for the new Counter-terrorism initiative, which is
needed to reduce international movement of terrorists and weapons by improving border
controls and communication with U.S. agencies, and by developing new weapons
detection equipment. We oppose the Senate's proposal to reduce $3 million of the
request of $43 million for the International Atomic Energy Agency (IAEA), a reduction
which would slow efforts to strengthen the agency's activities to inhibit nuclear
proliferation. Finally, the Administration opposes the Senate proposal to reduce the
request of $33 million for Anti-terrorism Assistance (ATA) by $13 million The Senate
proposed level for ATA would greatly reduce vital programs to train personnel from
foreign governments to counter the threat of terrorism and weapons of mass destruction.
School of the Americas. The Administration opposes the provision in the House bill that
would prohibit any funding from the bill for the Army's School of the Americas, a school
for training military personnel from Latin American countries. The School of the
Americas contributes to our efforts to professionalize Latin American militaries, to
increase respect for democracy, civilian oversight, and human rights.
U.S. Agency for International Development (USAID). The Administration urges the
conferees to provide full funding of $508 million for USAID's operating expenses as a
starting point. The bilateral foreign assistance program administered by USAID is an
essential component of American foreign policy. However, neither the House nor the
Senate provides the funds needed for USAID to maintain adequate staff to oversee its
programs while making required investments in information technology in Washington.
AID already faces additional requirements from the congressionally-mandated transfer of
the security function to USAID from its Inspector General. In addition, the Agency is
incurring the higher-than-anticipated costs of improving security at overseas posts.
Reductions from the request level would require the Agency to reduce its staff by even
more positions than already planned, which would be inconsistent with USAID's
responsibility for proper oversight of the program levels provided by the House and
Senate.
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The Administration appreciates the Senate's support for a number of its development
initiatives. In particular, the Senate's support for the "School Works" program will
provide important resources for the fight against child labor. We also urge the conferees
to follow the lead of the Senate and fully fund the "School Works" program. However,
the Administration is concerned about the House bill's drastic cut in Development
Assistance, as well as an unprecedented level of earmarks and directives in the Senate
bill. These cuts and directives would threaten USAID's ability to implement such
programs as the Africa Education Initiative and the Food Security Initiative and would
limit the Agency's ability to address the consequences of the financial crisis in Asia, as
well as support Summit of the Americas commitments throughout the Western
Hemisphere.
The Administration appreciates the Senate's approval of transfer authority for the
Development Credit Authority and urges the conferees to include the Senate provision.
We are concerned that the House has not provided subsidy budget authority for the Urban
Environment Credit program.
The Administration is concerned about the reductions in the International Disaster
Assistance account, particularly the $45 million cut in the Senate. Such a cut would limit
USAID's ability to meet humanitarian needs in other parts of the world, particularly in
Africa. It would also threaten USAID's ability to provide assistance to the victims of
nuclear, chemical, or biological disasters abroad, and would limit the ability of the Office
of Transition Initiatives to provide needed assistance to countries that are making the
transition from conflict situations.
The Administration supports the Senate's decision to provide for the Voluntary
Separation Incentives (buyout authority) for employees of USAID. The buyout authority
is vital to allow USAID to continue to reduce its employment levels in Washington. The
Administration also supports the Senate's approval of authority for USAID to create a
Working Capital Fund. It is important that USAID be provided the means to capture the
costs of becoming a service provider to other agencies to provide the lowest cost and
most efficient services. We urge the conferees to include both of these provisions, which
have no discretionary budget implications.
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Global HIV/AIDS Initiative. On July 19th, the Administration proposed a $100 million,
cross-agency initiative to address the global AIDS epidemic. This effort would leverage
the collective strengths of the Agency for International Development, the Department of
Health and Human Services, and the Department of Defense to increase our efforts to
reduce the worldwide spread of the HIV/AIDS. The proposal, which is fully offset,
includes an additional $45 million for USAID, $35 million for HHS, and $10 million for
DoD, along with an additional $10 million in food aid that will be programmed for AIDS
orphans. The House bill, regrettably, does not include the $45 million for the AID
portion of this program. While the Senate has included additional funding for AIDS in its
bill and the House has recommended additional funding in report language, these
amounts added by Congress are insufficient to meet this growing crisis, and come at the
expense of other development assistance priorities. We strongly urge the conferees to
fully fund the Foreign Operations component of the President's Global AIDS Initiative.
Peace Corps. The Administration is concerned that the proposed cuts of $50 million in
the Senate and $30 million in the House to the President's request of $270 million would
have serious consequences for the Peace Corps. Funding levels in both bills would
reverse current progress toward the goal of 10,000 volunteers, which was strongly
endorsed in the Peace Corps reauthorization bill enacted earlier this year with broad,
bipartisan support. The proposed funding levels would also require the Peace Corps to
consider closing additional overseas programs and hamper the agency's ability to respond
to humanitarian crises and natural disasters through its Crisis Corps program. We
strongly urge the conferees to support the President's request, in order to provide as many
opportunities as possible for Americans to serve overseas.
Export and Investment Financing The Administration appreciates the congressional
effort to fund the requested increase in the Export-Import Bank's administrative budget.
However, we note the reductions from the request in the Export-Import Bank's subsidy
budget would reduce the financing available to the President's Manufacturing Export
Initiative. Because exports have been such a critical component of job creation in the
United States, these cuts could have a negative impact on job growth.
The Administration supports full-funding of the President's request for the Trade and
Development Agency (TDA). As with the Export-Import Bank, the requested increase
for TDA is an integral part of the President's export initiative. Both the House and
Senate levels would significantly reduce TDA's ability to fund feasibility studies that
help U.S. exporters take advantage of potential market opportunities.
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The Administration appreciates the House's full funding of the administrative budget for
the Overseas Private Investment Corporation (OPIC). The Senate level, which is $3.5
million reduction below the request, or $1 million below the FY 1999 enacted level,
could threaten the agency's capacity to operate in a financially responsible and prudent
manner and runs counter to efforts to mobilize U.S. private sector support for key foreign
policy priorities. We also urge the Conferees to support the Senate's full funding of
OPIC's subsidy budget in order to meet essential program needs.
The Administration believes that the Senate provision mandating OPIC to establish an
investment fund is inappropriate because it would eliminate OPIC's discretion to
determine whether such a fund is financially viable. Likewise, the Administration does
not support language that would allow OPIC to use appropriated funds to engage in direct
equity investments because it would have important budgetary and policy consequences.
Migration and Refugee Assistance (MRA). The House's $20 million reduction and
especially the Senate's $50 million reduction to the President's request for MRA could
require a substantial reduction in annual refugee admissions. These levels would not
provide adequate funding for an initiative to address programmatic shortfalls in Africa
necessary to provide life-saving, minimum international standards of assistance in key
sectors (including nutrition, shelter, medicine, sanitation, and protection). Such
reductions in assistance to refugees in Africa and elsewhere at the very time huge
resources are going into Kosovo could create serious equity issues.
Inter-American Foundation. The Administration strongly opposes the absence of support
by the Senate and the debilitating cuts by the House. We strongly encourage support for
the Inter-American Foundation at least at the FY1999 enacted level of $20 million, which
would enable the Foundation to maintain its current level of contributions in the vital
Latin American and Caribbean region. The steadfast commitment toward democracy and
economic liberalization in Latin America and the Caribbean has been a U.S. Government
priority for decades. The Inter-American Foundation's work of supporting innovative
development initiatives and creating U.S. corporate partnerships is a distinctive
complement to the U.S. Government's goals in Latin America and the Caribbean.
African Development Foundation. The Administration urges the conferees to approve the
House recommendation of $14.4 million, the full appropriations request. We commend
the House for recognizing the significant contributions of the African Development
Foundation at the grassroots level, including micro-credit, trade, and investment
programs. The Administration also appreciates the Senate and the House
acknowledgments of the Foundation's improvements in private sector outreach,
programming, and management.
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Treasury International Affairs Technical Assistance. The Administration is concerned
that the House and Senate have provided only $1.5 million of the $8.5 million requested
for the Department of Treasury's International Affairs Technical Assistance program.
These resources are necessary to fund the Department's plan to provide technical
assistance to Ministries of Finance and Central banks that are attempting to implement
fiscal and financial reforms in Africa, Asia, and Latin America.
Kvoto Protocol Restriction. The House bill includes a rider prohibiting implementation
of the Kyoto Protocol. The Administration opposes the inclusion of this unnecessary
provision because we do not intend to implement the Protocol prior to Senate ratification.
Further, applying these restrictions to international negotiations and activities raises
serious Constitutional concerns.
Language Concerns. Several provisions within the House and Senate bills purport to
direct the Executive to take particular positions in international organizations: in the
House bill, sections 514(a) and 566(b); in the Senate bill, sections 567(d), 564, 578, and
589. When construed as mandates, these provisions would encroach on the President's
sole constitutional authority to conduct negotiations. If unchanged, this language would
be construed as precatory.
Three other provisions of the Senate bill raise constitutional concerns that should be
addressed in conference:
Section 577(a) (United States assistance to the Palestinian Authority) appears to
condition the Executive's ability to obligate certain funds on the prior
performance of discretionary acts by the Comptroller General. So understood, it
is an unconstitutional aggrandizement of congressional power under Bowsher V.
Svnar.
The provision in title II entitled "Burma," which makes the provision of certain
funds "subject to consultation and guidelines provided by the leadership of the
Burmese government elected in 1990," would infringe upon the President's sole
authority to recognize foreign governments.
The provision in title II entitled "Nonproliferation, Anti-Terrorism. Demining and
Related Programs" would require, as a condition for the use of certain funds, that
the Director of the Central Intelligence Agency supply "all relevant intelligence
bearing on North Korea's compliance with the provisions of this proviso" to
designated congressional committees. Insofar as this provision might, in
application, be read to require the disclosure of information that the President
would have the constitutional authority to withhold, it would be objectionable.
10
Clinton Presidential Records
Digital Records Marker
This is not a presidential record. This is used as an administrative
marker by the William J. Clinton Presidential Library Staff.
This marker identifies the place of a publication.
Publications have not been scanned in their entirety for the purpose
of digitization. To see the full publication please search online or
visit the Clinton Presidential Library's Research Room.
Foreign Operations, Export Financing, and
65
Related Programs Appropriation Bill 2000
14
Calendar No. 159
106TH CONGRESS
1st Session
}
REPORT
SENATE
106-81
FOREIGN OPERATIONS, EXPORT FINANCING, AND
RELATED PROGRAMS APPROPRIATION BILL, 2000
JUNE 17, 1999.-Ordered to be printed
Mr. MCCONNELL, from the Committee on Appropriations,
submitted the following
REPORT
[To accompany S. 1234]
The Committee on Appropriations reports the bill (S. 1234) mak-
ing appropriations for Foreign Operations and related programs for
the fiscal year ending September 30, 2000, and for other purposes,
reports favorably thereon and recommends that the bill do pass.
Amounts in new budget authority
Fiscal year 1999 appropriations
$31,719,553,000
Fiscal year 2000 budget estimate
14,615,535,000
Amount of bill as reported to Senate
12,744,055,000
Bill as recommended to Senate compared to:
1999 appropriations
- 19,050,004,000
Budget estimate
- 1,870,480,000
Fiscal year 1999 omnibus emergency supple-
mental
411,437,000
Fiscal year 1999 emergency supplemental
1,640,800,000
57-368 cc
F799 Fi2000 Cam
$125m
-25
]
$
06/18/99
10:25
202 647 9667
STATE LEG AFF.
002
GEF
109
1 Russian Federation, after 180 days from the date of en-
2 actment of this Act, unless the President determines and
3 certifies in writing to the Committee on Appropriations
4 and the Committee on Foreign Relations of the Senate
5 that the Government of the Russian Federation has imple-
6 mented no statute, executive order, regulation or similar
7 government action that would discriminate, or would have
8 as its principal effect discrimination, against religious
9 groups or religious communities in the Russian Federation
10 in violation of accepted international agreements on
11 human rights and religious freedoms to which the Russian
12 Federation is a party.
13
GREENHOUSE GAS EMISSIONS
14
SEC. 571. (a) Funds made available in this Act to
15 support programs or activities promoting or assisting
16 country participation in the Kyoto Protocol to the Frame-
17 work Convention on Climate Change (FCCC) shall only
18 be made available subject to the regular notification proce-
19 dures of the Committees on Appropriations.
20
(b) The President shall provide a detailed account of
21 all Federal agency obligations and expenditures for cli-
22 mate change programs and activities, domestic and inter-
23 national obligations for such activities in fiscal year 2000,
24 and any plan for programs thereafter related to the imple-
25 mentation or the furtherance of protocols pursuant to, or
26 related to negotiations to amend the FCCC in conjunction
J. 54-213
06/18/99
10:26
202 647 9667
STATE LEG AFF
003
110
1 with the President's submission of the Budget of the
2 United States Government for Fiscal Year 2001: Pro-
3 vided, That such report shall include an accounting of ex-
4 penditures by agency with each agency identifying climate
5 change activities and associated costs by line item as pre-
6 sented in the President's Budget Appendix.
7
AID TO THE GOVERNMENT OF THE DEMOCRATIC
8
REPUBLIC OF CONGO
9
SEC. 572. None of the funds appropriated or other-
10 wise made available by this Act may be provided to the
11 Central Government of the Democratic Republic of Congo.
12
EXPORT FINANCING TRANSFER AUTHORITIES
13
SEC. 573. Not to exceed 5 per centum of any appro-
14 priation other than for administrative expenses made
15 available for fiscal year 2000 for programs under title I
16 of this Act may be transferred between such appropria-
17 tions for use for any of the purposes, programs and activi-
18 ties for which the funds in such receiving account may
19 be used, but no such appropriation, except as otherwise
20 specifically provided, shall be increased by more than 25
21 per centum by any such transfer: Provided, That the exer-
22 cise of such authority shall be subject to the regular notifi-
23 cation procedures of the Committees on Appropriations.
J. 54-213
18:16 FROM:
F
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
STATE UNITED
WASHINGTON, D.C. 20503
June 30, 1999
(Senate Floor)
STATEMENT OF ADMINISTRATION POLICY
(THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
S. 1234 - FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED
PROGRAMS APPROPRIATION BILL, FY 2000
Sponsors: (Stevens (R), Alaska; McConnell (R), Kentucky)
This Statement of Administration Policy provides the Administration's views on the
Foreign Operations, Export Financing, and Related Programs Appropriations Bill, FY 2000, as
reported by the Senate Appropriations Committee. As the Senate considers the Committee-
reported bill, your consideration of the Administration's views would be appreciated.
The Administration appreciates the Committee's efforts to accommodate some of the
Administration's priorities within its 302(b) allocation. However, the inadequacy of the 302(b)
allocation has forced the Committee to make choices that are simply unacceptable.
The allocation of discretionary resources available to the Senate under the Congressional
Budget Resolution is simply inadequate to make the necessary investments that our citizens need
and expect. The President's FY 2000 Budget proposes levels of discretionary spending that meet
such needs while conforming to the Bipartisan Budget Agreement by making savings proposals
in mandatory and other programs available to help finance this spending. Congress has
approved, and the President has signed into law, nearly $29 billion of such offsets in
appropriations legislation since 1995. The Administration urges the Congress to consider such
proposals.
This legislation is a critical element of America's national security budget. As a result of
the inadequate 302(b) allocation for Foreign Operations, the Committee bill is more than $1.9
billion, or 13 percent, below the program level requested by the President, which would result in
the severe under-funding of a number of crucial programs. A bill funded at this level would be
grossly inadequate to maintain America's leadership around the world. It inevitably would
require severe reductions from previously enacted levels for programs managed by the
Departments of State and Treasury, the Agency for International Development, and other
agencies.
The bill provides neither the $500 million requested by the President to support the Wye
River Agreement, nor any of the $800 million requested as an FY 1999 supplemental
appropriation. It also would significantly increase our arrears to various multilateral
development banks, after three years of bipartisan progress in reducing these arrears, thus
undermining our leadership in these institutions. The Committee's decision not to fund the
Expanded Threat Reduction Initiative undermines our ability to reduce the proliferation threat
and continue the elimination of weapons of mass destruction (WMD). The cut in funding for
debt reduction programs would preclude our leadership in reducing debt of the poorest countries.
Given current tensions on the Korean peninsula and the 37,000 U.S. troops stationed there, the
reduction for the Korean Peninsula Energy Development Organization (KEDO) is ill-advised.
Moreover, the bill contains substantial earmarks and objectionable restrictions on
language which, when combined with the reduced funding level, would seriously limit the
President's flexibility to conduct an effective foreign policy. Various provisions concerning
Kosovo, in the context of difficult and fluid circumstances on the ground, are particularly ill-
advised. For example, the earmark to train and equip 2 security force in Kosovo would reduce
the Administration's flexibility and, given current intra-Kosovar rivalries, could threaten the lives
of American military and civilian peacekeepers. The designation of Serbia as a terrorist state
would have the unintended consequence of cutting off aid to Front Line and other states. even if
they provide only humanitarian assistance to the Former Republic of Yugoslavia. The total
prohibition on assistance to Russia pending certification that Russia is not assisting Iran's
development of nuclear and ballistic missile technologies would complicate our efforts to
achieve those very goals and would undermine other vital American interests in ensuring
constructive relations with a more stable Russia.
If the Congress were to enact a bill that does not resolve the significant funding and
language problems in the current Committee bill, as discussed in this Statement of
Administration Position and its attachment, the President's senior advisers would have no choice
but to recommend that he veto the bill.
Detailed comments on the Senate Committee-reported bill are provided in the attachment.
Attachment
2
(Senate Floor)
ADDITIONAL CONCERNS
S. 1234 FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED
PROGRAMS APPROPRIATIONS BILL, FY 2000
(AS REPORTED BY THE SENATE APPROPRIATIONS COMMITTEE)
For the following accounts, the Administration urges the Senate to restore funding to the
levels in the President's FY 2000 request.
Multilateral Development Banks. The reduction of $444 million, or 32 percent, by the
Committee to the President's request for the Multilateral Development Banks would
unravel the progress made in the FY 1998 and 1999 appropriations towards meeting the
past-due obligations of the United States to these institutions and in meeting our
continued obligations to them at the much-reduced level that has been negotiated over
recent years. In particular, the lack of any funding whatsoever for the African
Development Fund and the drastic cuts in the requests for the Global Environment
Facility and the Asian Development Fund would call into question the willingness of
other donors to continue their support for these critical institutions at the very point when
their support for environmental and economic development is most needed
Southeast Europe and Kosovo. The Administration appreciates the increase in Support
for Eastern Europe Democracy (SEED) funding in recognition of U.S. security interests
in restoring and sustaining stability in Southeast Europe. However we strongly oppose
the earmarks of the SEED account, earmarks that, if enacted, would eviscerate the
President's flexibility in meeting any unanticipated onomic stabilization needs in this
war-ravaged region. In addition, the funding limitations on Bosnia would only increase
the risk that the peace we have worked to establish in that country could begin to unravel
just as the Kosovo conflict shows signs of abatement.
With regard to Kosovo, the Administration is strongly opposed to language which,
coupled with the language contained in the Committee report, could be interpreted as
aimed at training and equipping the Kosovo Liberation Army (KLA), a policy
prescription diametrically at odds with the recent agreement by the KLA to disarm under
NATO supervision. If adopted, we believe this provision could threaten the lives of
American military and civilian peacekeepers and humanitarian care providers,
particularly in view of current intra-Kosovar rivalries.
The Administration also strongly opposes the designation of the Government of Serbia as
a state sponsor of international terrorism and gross human rights violator. While
egregious, the actions taken by officials of that Government against the Kosovar people
do not constitute "international terrorism" as that term is used in U.S. terrorism
legislation. The provision contains neither a waiver, nor an authority to "de-designate"
and would impinge on the authority of the Secretary of State. Moreover, the bill's
designation of Serbia as a state sponsor of international terrorism could have the
unintended consequence of imposing sanctions on Front Line States and other countries
that, whether because humanitarian or other concerns, provide assistance of any kind to
the Government of the Federal Republic of Yugoslavia. This could further destabilize an
already war-torn region and make more difficult the task of assuring stability in the
broader region.
Sec. 567 - Restrictions on Assistance to Countries Providing Sanctuary 10 Indicted War
Criminals. While the Administration appreciates the Committee's desire to speed the
apprehension and trial of war criminals, the Administration opposes any provision that
would increase restrictions in current law on former Yugoslav entities harboring war
criminals as too restrictive, unnecessary, too burdensome in implementation. and
jeopardizing successful Dayton implementation.
Assistance to the Newly Independent States (NIS). The Committee bill would reduce the
President's request for assistance to the NIS by 24 percent, and over half of the $780
million that is provided would be earmarked for three countries in the region. This would
leave little in funding for reforming countries such as Moldova, or to fund the vitally
important Expanded Threat Reduction Initiative. The reduction in the Committee bill
would also reduce funding for programs that the Senate has supported aimed at fostering
grass root support for reform in the region, including micro-lending and exchange
programs. Such cuts would undermine our efforts to help the countries of the region to
become integrated into the global economy and play constructive roles in global affairs.
They equally would make it more difficult to press for further market reforms and to
support democratic forces across the region.
The Administration strongly opposes conditioning all assistance to Russia on a
certification that Russia is not assisting the Government of Iran's development of nuclear
and ballistic missile technologies. This would complicate our efforts to achieve those
very goals and would undermine other vital American interests in ensuring constructive
relations with a more stable Russia.
2
JUN-30-99 18:18 FROM:
Expanded Threat Reduction Initiative (ETRD. The Committee provides no support for
proposed increases for this critical national security initiative. We have made dramatic
strides in securing nuclear materials and important progress in strengthening export
controls in these countries. The primary objective of the Expanded Threat Reduction
Initiative is to further reduce international security threats by expanding and accelerating
U.S. and international assistance activities in Russia and the other NIS to address high
priority security and proliferation concerns. This initiative has received wide support in
Western Europe and Japan. The costs of having to defend against weapons of mass
destruction (WMD) proliferation are enormous. At a fraction of such costs, the
international community can join together to reduce the proliferation threat through ETRI.
Korean Peninsula Energy Development Organization (KEDO). The Administration
strongly objects to the bill's provisions concerning KEDO. The cut of $15 million, or 20
percent, in funding for KEDO could prevent the United States from fulfilling its
commitments under the Agreed Framework to provide heavy fuel oil to North Korea and
could damage our nonproliferation policy on the Korean Peninsula. Restrictions on
funding relating to North Korean missile exports and "nuclear capability" would also
jeopardize our ability to meet our commitments on the peninsula. Stopping North
Korea's ballistic missile and nuclear programs, including its exports, are a priority goal of
the Administration and a key focus of Secretary Perry's review of U.S. policy, but any
failure by the United States to uphold the Agreed Framework risks giving North Korea an
excuse to develop both ballistic missiles and nuclear weapons. In addition, the
requirement for a 45-day delay in Presidential certification would seriously undermine
our ability to maintain the funding schedule for KEDO. Finally, we strongly oppose the
prohibition on use of Economic Support Fund (ESF) funds for KEDO, which would
unduly restrict the President's flexibility to deal with unexpected foreign policy
developments.
Wye River and Middle Eastern Assistance. The Committee bill fails to provide any of
the $500 million requested by the President for FY 2000 to support the Wye River
Agreement, nor does it provide any of the $800 million requested as an FY 1999
supplemental appropriation for this purpose. Given the renewed dedication of all sides to
the peace process, this complete lack of funding would undercut the U.S. Government's
efforts to support this historic opportunity to strengthen the peace process and move
toward a permanent agreement.
The Administration continues to welcome the efforts of the Committee to ramp down
traditional levels of assistance to countries in the Middle East. However, the
Administration is disappointed both at the Committee's failure to accept our specific
proposal for a gradual reduction in aid to Israel and Egypt and with the Committee's
decision not to incorporate the provision of an Interest Bearing Account for a portion of
Egypt's Foreign Military Financing (FMF). The Administration will work with the
Congress on the scoring implication of this proposal.
3
Economic Support Fund (ESF). The reduction of almost $200 million to the President's
request for non-Wye River ESF would effectively remove any discretion that the
President has to respond to a host of threats around the world. These cuts would force the
reduction or elimination of programs intended to increase political stability and
democratization in Africa; support democracy efforts in Guatemala, Peru, and Ecuador,
sustain implementation of the Belfast Good Friday Accord; bolster democratic reform and
economic recovery in Asia; and, support Arab/Israeli cooperation programs in the Middle
East.
Debt Reduction. The cut of almost two-thirds to the President's request for debt
reduction programs, from $120 million to $43 million, would cripple our ability to fund
the bipartisan debt for environment program that was enacted by the Congress last year
and would damage our ability to contribute to the Trust Fund for the Highly Indebted
Poor Countries, which is an essential component of current debt reduction programs as
well as of the historic debt initiative agreed to in Cologne. This initiative has received
broad support from governments, multilateral institutions, religious groups, and
individuals worldwide.
Peacekeeping Operations. The Committee's $50 million, or 38 percent, cut to the
President's request for voluntary peacekeeping operations would decrease funds available
for Organization for Security and Cooperation in Europe (OSCE) missions in Bosnia and
Croatia, significantly reduce assistance for the African Crisis Response Initiative, and
eliminate funding for Haiti. In doing so, such a substantial reduction would also raise
international concern that the United States may not support its fair share of the
international police force that will help to implement the Kosovo peace settlement, for
which new resources will be needed
International Narcotics and Crime. The cut of $80 million, or 27 percent. to the
President's request for International Narcotics and Crime programs would significantly
impact programs designed to implement the National Drug Control Strategy, including
alternative development efforts in Columbia, Peru, and Bolivia, and would reduce our
support for the U.N. Drug Control Program and other important multilateral anti-
narcotics efforts. A cut of this magnitude would also significantly undercut the
Administration's programs in support of the President's new International Crime Control
Strategy, which was released in May 1998.
Nonproliferation. Anti-terrorism. Demining. and Related Programs. The Committee has
cut these programs by $56 million, or 24 percent, from the President's request. In
addition to the reduction for KEDO discussed separately, the request for export control
assistance would be cut by two-thirds (from $15 million to $5 million). This would
greatly slow our efforts to assist the NIS and other regions to develop tighter controls to
prevent nuclear smuggling.
4
JUN-30-99 18:20 FROM:
Peace Corps. The Administration is very concerned by the Committee's $50 million, or
19 percent, reduction to the President's request for the Peace Corps. This reduction,
which would cut funding by over $20 million from the FY 1999 enacted level, would
require the Peace Corps to reduce the current level of volunteers by over 1,000. It would
also prevent implementation of the bipartisan initiative to field 10,000 volunteers in the
new century. This Administration goal was enacted into law in 1985 as "the policy of the
United States and the purpose of the Peace Corps," and was confirmed in this year's
Peace Corps reauthorization (which was approved by the Senate by unanimous consent).
U.S. Agency for International Development (USAID). The Administration appreciates
the Committee's support for a number of the Administration's development initiatives.
In particular, the Committee's support for the "School Works" program will provide
important resources for the fight against child labor.
However, the Committee bill and accompanying Senate Committee Report contain an
unprecedented number of earmarks, directives and recommendations for funding, with
over 30 earmarks in bill language and over 60 directives or recommendations in report
language. When combined with the degree of specificity for funding -- in some cases
down to the project type and appointed grant recipient -- these produce an unmatched and
unwarranted level of micro-management.
The Administration appreciates the increase over FY 1999 in funding for USAID's
operating expenses. However, the reduction of almost $13 million from the request,
coupled with the higher-than-anticipated costs of improving security at overseas posts,
would force USAID to reduce its permanent staff by even more positions than already
planned. P.L. 105-277, the FY 1999 Omnibus Consolidated and Emergency
Supplemental Appropriations Act mandated the transfer of the security function to
USAID from its Inspector General.
Although sufficient disaster assistance resources have been provided for Kosovo through
supplemental appropriations, the 20-percent reduction to the Administration's FY 2000
disaster assistance request would limit USAID's ability to meet humanitarian needs in
other parts of the world, particularly in Africa. It would also threaten USAID's ability to
provide assistance to the victims of nuclear, chemical, or biological disasters abroad, and
would limit the ability of Office of Transition Initiatives to provide needed assistance to
countries that are making the transition from conflict situations.
The Administration is disappointed that the Committee has not approved transfer
authority for the Development Credit Authority. USAID's recent implementation of a
credit management out-sourcing contract and other credit management improvements
justifies continued funding of this innovative new credit mechanism.
5
The Administration is concerned that its request for reinstatement of the Development
Fund for Africa (DFA) is not included in the bill. Funding provided under the DFA
affords needed stability to respond to development opportunities in Africa, as well as to
complex crises on a fragile continent, and maintains our strong commitment to an Africa
in transition.
Finally, we are concerned that the Committee has not approved the requested authority
for USAID to create a Working Capital Fund similar to those already available to the
Department of State and other agencies. We hope to work with the Senate to give
USAID the means to capture the costs of becoming a service provider to other agencies
under the ICASS system and, therefore, encourage competition among agencies to
provide the lowest-cost and most efficient services.
Migration and Refugee Assistance (MRA). The Committee's $50 million reduction to
the President's request for MRA would require a reduction in annual refugee admissions
to the United States of up to 10,000. A reduction of this magnitude also would eliminate
resources for an initiative to address programming shortfalls in Africa and South Asia
necessary to provide life-saving, minimum international standards of assistance in key
sectors (including nutrition, shelter, medicine, sanitation, and protection). Such
reductions in assistance to refugees in Africa and elsewhere at the very time huge
resources are going into Kosovo would create serious political and equity issues.
Export and Investment Financing. The Administration appreciates the Committee's
effort to support the President's export initiative by increasing funding for the Export-
Import Bank, especially the administrative budget. which is essential to the Bank's efforts
to increase small business exports. We urge the Senate, as this bill progresses, to increase
the Bank's credit subsidy budget to the President's requested level to enable U.S.
exporters to continue to export to the developing world during the ongoing economic
downtum.
The Administration is very concerned about the reduction in funding for the Trade and
Development Agency (TDA) below both the President's request and the FY 1999 enacted
level. The request for TDA is an integral part of the President's export initiative, and the
Committee bill would significantly reduce TDA's ability to fund feasibility studies that
help U.S. exporters take advantage of potential market opportunities.
Likewise, the Administration is very concerned about the reduction in administrative
expenses for the Overseas Private Investment Corporation. This $3.5 million reduction
below the request, or $1 million below the FY 1999 enacted level, could threaten the
agency's capability to operate in a financially responsible and prudent manner, and runs
counter to efforts to mobilize U.S. private sector support for key foreign policy priorities.
6
The Administration believes the Senate provision mandating OPIC to establish an
investment fund is inappropriate because it would eliminate OPIC's discretion to
determine whether such a fund is financially viable.
African Development and Inter-American Foundations. The Administration strongly
objects to the suspension of funding for the Inter-America Foundation. It is inappropriate
to suspend funding for an entire agency as the result of the alleged improprieties of
individual staff members.
The Administration appreciates the Committee's efforts to support the African
Development Foundation (ADF). However, the Committee's funding level of $12.5
million still falls short of the amount necessary for the ADF to continue its important
work of supporting Africans at the grassroots level, including micro-credit and trade and
investment programs. The Committee has previously acknowledged the ADF's
improvements in private sector outreach, as well as the Foundation's streamlining of
operations.
International Organizations & Programs. The Administration opposes the $22 million cut
in the request for IO&P's. Further, while we strongly support the programs earmarked by
the Committee, the Administration must retain its flexibility in funding these programs,
consistent with an overall assessment of the national interest.
Treasury International Affairs Technical Assistance. The Administration is concerned
that the Committee provided only $1.5 million of the $8.5 million request for the
Department of the Treasury's International Affairs Technical Assistance program. These
resources are necessary to fund the Department's plan to provide technical assistance to
Ministries of Finance and Central Banks that are attempting to implement fiscal and
financial reforms in Africa, Asia and Latin America.
Silk Road Strategy Act. The Administration strongly supports passage of the Silk Road
Strategy Act, which may be added to the bill as an amendment. We appreciate the
Committee's continued efforts to reduce restrictions in section 907 of the FREEDOM
Support Act. This Administration, like its predecessors, has opposed section 907 and
called for its repeal. Section 907 damages U.S. national interests by undermining the
United States' neutrality in seeking to promote a settlement in the Nagomo-Karabakh
dispute; by restricting our ability to provide assistance that would encourage economic
and broad legal reforms in Azerbaijan; and, by limiting our efforts to advance an east-
west energy transport corridor. While the Silk Road Strategy Act does not provide for the
full repeal of Section 907 that the Administration has sought, it would allow the President
to waive these restrictions if he determined that they were not in the national interest of
the United States.
7