House Report 106-720 - FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS APPROPRIATIONS BILL, 2001

[House Report 106-720]
[From the U.S. Government Publishing Office]

106th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 106-720

======================================================================

FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS
APPROPRIATIONS BILL, 2001

_______

July 10, 2000.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed

_______

Mr. Callahan, from the Committee on Appropriations, submitted the
following

R E P O R T

together with

ADDITIONAL VIEWS

[To accompany H.R. 4811]

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, 2001, and
for other purposes.

INDEX TO BILL AND REPORT

_______________________________________________________________________

Page

Bill Report
Summary of the Bill........................................
2
Committee Recommendations..................................
3
Title I--Export and Investment Assistance:
Export-Import Bank of the United States............ 2
4
Overseas Private Investment Corporation............ 4
4
Trade and Development Agency....................... 6
5
Title II--Bilateral Economic Assistance:
Child Survival and Disease Programs Fund........... 6
6
Development Assistance............................. 8
18
International Disaster Assistance.................. 13
38
Transition Initiatives............................. 13
39
Micro and Small Enterprise Development Program..... 14
40
Development Credit Program Account................. 14
40
Payment to the Foreign Service Retirement and
Disability Fund................................ 16
41
AID Operating Expenses............................. 16
41
Operating Expenses of the Agency for International
Development, Office of the Inspector General... 17
45
Development Fund for Africa........................
45
Economic Support Fund.............................. 17
45
International Fund for Ireland..................... 18
54
Assistance for Eastern Europe and the Baltic States 19
55
Assistance for the Independent States of the Former
Soviet Union................................... 22
59
Independent Agencies:
Inter-American Foundation..........................
65
African Development Foundation.....................
65
Peace Corps........................................ 25
66
Department of State:
International Narcotics Control and Law Enforcement 26
66
Migration and Refugee Assistance................... 26
69
Emergency Refugee and Migration Assistance Fund.... 27
71
Nonproliferation, Anti-terrorism, Demining and
Related Programs............................... 27
72
Department of the Treasury:
International affairs technical assistance......... 29
76
Debt restructuring................................. 29
74
United States community adjustment and investment
program........................................
76
Title III--Military Assistance:
International Military Education and Training...... 33
76
Foreign Military Financing Program................. 34
78
Peacekeeping Operations............................ 38
81
Title IV--Multilateral Economic Assistance:
Global Environment Facility........................ 38
82
International Development Association (IDA)........ 38
82
Multilateral Investment Guarantee Agency........... 39
83
Inter-American Investment Corporation.............. 40
86
IDB Multilateral Investment Fund................... 40
86
Multilateral Investment Fund....................... 40
86
Asian Development Fund (ADF)....................... 40
86
African Development Bank........................... 41
87
African Development Fund (AFDF).................... 41
87
European Bank for Reconstruction and Development
(EBRD)......................................... 41
87
International Fund for Agricultural Development
(IFAD)......................................... 42
87
Department of State:
International Organizations and Programs........... 42
88
Title V--General Provisions................................ 43
89
House of Representatives Report Requirements...............
94

Summary of the Bill

The Committee has recommended foreign assistance and export
financing funding at a level that is $1,851,094,000 below the
Administration's fiscal year 2001 request of $15,132,068,000 in
discretionary budget authority, excluding emergency funding.
The resulting total of $13,280,974,000 in discretionary
appropriations (excluding emergency funding) is needed to meet
the essential requirements of the United States and its
President in conducting foreign policy and meeting urgent
humanitarian needs abroad.
The section 302(b) allocation for foreign operations,
export financing, and related programs is $13,281,000,000 in
discretionary budget authority. The Committee recommendation of
$13,280,974,000 in discretionary budget authority (excluding
emergency funding) is slightly below the section 302(b)
allocation. On a comparative basis (excluding emergency
supplemental appropriations and including scoring adjustments)
the Committee recommendation is $151,124,000 below the 2000
level.

committee recommendations

For export and investment assistance programs the Committee
has recommended a gross total of $994,000,000, which is
partially offset by collections and a negative subsidy totaling
$298,000,000. The subsidy appropriation for the Export-Import
Bank is $825,000,000, and the Trade and Development Agency is
funded at $46,000,000. The Committee has provided $24,000,000
for subsidy appropriations requested on behalf of the Overseas
Private Investment Corporation.
The Committee has recommended $823,179,000 of the
$1,353,916,000 requested for the international financial
institutions. The overall reduction is $291,839,000 below the
fiscal year 2000 enacted level and $530,737,000 below the
request.
For development and humanitarian assistance, the Committee
has recommended a total of $2,887,484,000 of which $834,000,000
is for child survival and disease prevention programs. Another
$1,258,000,000 is for longer-term development assistance. The
Committee has also included $165,000,000 for disasters
worldwide and $40,000,000 for transition initiatives previously
funded from disaster assistance. The Committee has included
$82,400,000 for debt restructuring for poor countries and a new
tropical forestry debt relief program.
The Committee has continued its highly effective Child
Survival and Disease Programs Fund. It is designed to ensure
that there will not be reductions in these vital programs as
the overall bilateral assistance program is constrained. The
emphasis is on programs that directly affect younger children,
including basic education, and on accelerating efforts to
eradicate diseases that threaten younger children and
caregivers alike. The account does not include population
assistance, which will be funded through the Development
Assistance account. It does provide for a grant to UNICEF at a
level of $110,000,000.
The Committee has included a total of $740,000,000 in
assistance to the Independent States of the Former Soviet
Union, and $535,000,000 for Eastern Europe and the Baltic
States.
The Committee has recommended a total of $657,500,000 for
refugee programs.
For economic assistance under the Economic Support Fund,
the Committee has recommended a total of $2,208,900,000.
The Committee has recommended $241,600,000 for a
Nonproliferation, Anti-terrorism and Demining account which
includes funding for the Nonproliferation and Disarmament Fund,
anti-terrorism assistance, demining activities, United States
participation in the Korean Energy Development Organization
(KEDO), and the U.S. voluntary contribution to the
International Atomic Energy Agency (IAEA).
For Foreign Military Financing, the Committee has
recommended a grant program of $3,510,000,000.

TITLE I--EXPORT AND INVESTMENT ASSISTANCE

Export-Import Bank of the United States

subsidy appropriation

Fiscal year 2000 level................................ $759,000,000
Fiscal year 2001 request.............................. 963,000,000
Committee recommendation.............................. 825,000,000

administrative expenses

Fiscal year 2000 level................................ $55,000,000
Fiscal year 2001 request.............................. 63,000,000
Committee recommendation.............................. 62,000,000

The Committee is recommending a subsidy appropriation for
the Export-Import Bank of $825,000,000 and an appropriation of
$62,000,000 for administrative expenses. Taken together, the
recommended appropriation for the Eximbank is $73,000,000 above
the fiscal year 2000 level and $139,000,000 less than the
request.
The Committee has continued prior year language limiting
the export of nuclear technology or fuel to certain countries.
The Committee has also included language making possible
Export-Import Bank activity in Eastern Europe and the Baltic
States.
The Committee provided no additional funds for a tied-aid
``war chest''. The estimated $315,000,000 remaining ``war
chest'' balance for tied-aid purposes may be used to support
loans. If more funds are needed for the war chest, the
Committee will promptly consider any additional requests from
the President. The Committee remains concerned about the
potential impact of Eximbank decisions on United States foreign
policy and human rights objectives. It reiterates language on
mechanisms to provide greater transparency with regard to those
concerns that was included in last year's report.

export-import bank and the clean energy Initiative

The Committee believes that Export-Import Bank funds should
not be designated in advance by the President or by Congress
for specific sectors of the economy. Once such a precedent is
established, the character of the Eximbank will be adversely
changed. None of the subsidy appropriation provided under this
heading in this Act and in prior-year acts may be reserved or
set aside for a clean energy initiative or any similar purpose.

Overseas Private Investment Corporation

administrative expenses

Fiscal year 2000 level................................ $35,000,000
Fiscal year 2001 request.............................. 39,000,000
Committee recommendation.............................. 37,000,000

subsidy appropriation

Fiscal year 2000 level................................ $24,000,000
Fiscal year 2001 request.............................. 24,000,000
Committee recommendation.............................. 24,000,000

The Committee is recommending a subsidy appropriation of
$24,000,000 for the Overseas Private Investment Corporation's
(OPIC) direct and guaranteed loan credit programs, and it is
recommending $37,000,000 for administrative expenses.
The Committee continues prior year language required by the
Federal Credit Reform Act and addressing representation
expenses and availability of funds.
The Committee's concerns about the management and exposure
of OPIC-guaranteed emerging market investment funds have been
addressed by the information on the investment funds provided
by OPIC and the General Accounting Office this year. In order
to promote future accountability, the Committee directs OPIC to
continue to provide on a semi-annual basis written reports
including the following information for each investment fund:
the identity, selection process, and professional background of
current and past managers; the fees and compensation currently
provided to senior management; the amount of OPIC guarantees
and actual investments made at the end of the previous month;
and any additional observations that OPIC may want to include.

opic and the environment

The Committee encourages OPIC to provide increased support
within the power and energy sector for investments using
American technology that promotes a cleaner environment.
Special attention should be given to use of proven geothermal,
small hydro, wind, biomass and solar technologies. The
Committee urges OPIC to continue over the next year to review
and strengthen its policies regarding the energy and power
sectors as they relate to the environment and private sector
infrastructure. The ongoing review should reflect the comments
of Congress and the public, as well as the Executive branch.

Funds Appropriated to the President

Trade and Development Agency

Fiscal year 2000 level................................ $44,000,000
Fiscal year 2001 request.............................. 54,000,000
Committee recommendation.............................. 46,000,000

The Committee is recommending $46,000,000 for the Trade and
Development Agency (TDA), an increase of $2,000,000 above the
2000 level and $8,000,000 below the request. In collaboration
with the U.S. National Institute of Standards and Technology,
TDA is encouraged to support United States participation in the
development of national technical standards compatible with
American goods and services in key transition country markets.

TITLE II--BILATERAL ECONOMIC ASSISTANCE

Funds Appropriated to the President

Agency for International Development

The Committee provides two accounts for longer-term
development assistance programs managed by the Agency for
International Development. As in fiscal year 2000 and as
requested in the President's budget, the bill includes an
account for child survival, children's basic education, and
disease prevention and treatment activities and a separate
general development assistance account for other development
programs in Africa, Latin America and Asia.
Two existing regional accounts jointly managed by the
Department of State and the Agency for International
Development are included elsewhere in title II under ``Other
Bilateral Assistance''. The Committee utilizes the regional
accounts to fund most economic and political cooperation with
Russia and the independent states of the former Soviet Union as
well as the former captive nations of the Soviet Empire in
Central Europe.
There are three other structural changes from the budget
request. Continuing long-standing practice, the Committee again
includes a contribution to the United Nations Children's Fund
(UNICEF) in the Child Survival and Disease Programs Fund. The
President's request proposed to fund the voluntary contribution
for UNICEF in ``International Organizations and Programs''.
As it has for the past five years, the Committee again
includes funding for long-term development assistance in sub-
Saharan Africa, other than child survival and health programs,
in the global ``Development Assistance'' account. The
President's budget proposed carving out from the global
Development Assistance account a separate ``Development Fund
for Africa'' (DFA) account. The DFA would not have included
activities in Africa currently funded under the ``Child
Survival and Disease Programs Fund''.
Finally, new authority for the United States to contribute
to an international fund for children's vaccines is included in
the Committee recommendation for the Child Survival and Disease
Programs Fund. The President requested funding for a
contribution to the Global Alliance for Vaccines and
Immunizations (GAVI) by the United States under the heading
``International Organizations and Programs''.

Child Survival and Disease Programs Fund

Fiscal year 2000 level................................ $715,000,000
Fiscal year 2001 request (under fiscal year 2000 769,250,000
account structure)...................................
Committee recommendation.............................. 834,000,000

The Committee recommends $834,000,000 for the ``Child
Survival and Disease Programs Fund'', an amount that is
$64,750,000 above the request under the fiscal year 2000
account structure and $119,000,000 above the amount enacted for
2000. The recommendation includes authority for a United States
contribution to the Global Alliance for Vaccine and
Immunization (GAVI).
The Child Survival and Disease Programs Fund is a
Congressional initiative that the President now includes in the
budget request. As a Committee priority this year, a detailed
justification of the recommended increase is presented below.

explanation for increase above fiscal year 2000 level

The Committee's recommendation is higher than the 2000
level because of three major developments over the past year.
First, there is a growing willingness in many poor and
developing nations to address the threat each faces from
tuberculosis/HIV/AIDS and other infectious diseases. A few more
cases are being reported of nations reversing the spread of
HIV/AIDS, but AID appears to place too little attention on, and
provides minimal support for halting, emerging epidemics. The
Committee urges AID to focus on emerging concentrations of TB/
HIV, applying actual lessons learned from nations that halted
and reversed the number of victims.
Secondly, private American foundations and international
commercial vaccine producers are now working with AID, the
World Health Organization, and UNICEF to save children by
reducing the cost and increasing the supply of vaccines that
are currently used mostly in industrial countries because of
expense. Because of the investments funded by this account in
prior years, absorptive capacity in a number of poor nations is
beginning to increase to the extent that they can begin to
limit the spread of TB/HIV and properly administer vaccines.
Such improvements in absorptive capacity cannot be sustained or
extended without additional investment in surveillance and
institutional capacity.
Finally, the Committee is aware that the number of
vulnerable children in need of international and local support
is increasingly evident in many regions. In Africa, war and the
impact of TB/HIV is generating a generation of child soldiers
and orphans in several nations. International assistance may
help adult survivors socialize and educate such vulnerable
children, although at present there are few precedents for
effective care and training in such dire situations. In Eastern
Europe, Central Eurasia, and Southeast Asia, the sharply
declining economic situation among many families in recent
years has left more children in poorly funded orphanages,
living on the streets, or victims of sexual predators and drug
dealers. Solutions to the tragedy of vulnerable children must
be local, but voluntary organizations whose private donations
are supplemented by AID can often expedite those solutions and
provide desperately needed material support.

essential role of free market economic growth in development

As popular as the Child Survival and Disease Programs Fund
is with the American people, the Committee has resisted appeals
to increase its funding faster. The Child Survival account is
only one part of the U.S. effort to help others work toward the
standards of living most Americans have achieved already. The
Committee recognizes that the long-term benefits of the Fund
are limited unless there are future jobs and income for the
children we help when they grow up to be adults. Continuing AID
support for free market approaches to economic growth remains
essential to complete the work of child survival. In each poor
country helped by American child survival activities, a
balanced assistance program also requires cooperation to
provide reasonably priced and reliable food, water, cleaner
power, and communications as well as credit.

Allocation of Child Survival and Disease Programs Fund

Unless modifications are subsequently notified and agreed
to by the Committees on Appropriations, fiscal year 2001
appropriations for the Child Survival and Disease Programs Fund
are deemed to be allocated as follows:

Category Allocation
Child Survival and Maternal Health...................... $290,000,000
Vulnerable children..................................... \1\ 30,000,000
HIV/AIDS................................................ 202,000,000
Other Infectious Diseases............................... \1\ 99,000,000
Children's basic education.............................. 103,000,000
Grant to UNICEF......................................... 110,000,000
--------------------------------------------------------
____________________________________________________
Total in this account................................... 834,000,000

Basic education in Economic Support Fund................ 15,000,000
Other CSD activities in ESF............................. 55,000,000
CSD activities in regional accounts..................... 45,000,000
--------------------------------------------------------
____________________________________________________
Total in all bilateral accounts..................... 949,000,000

\1\ The two categories indicated include undetermined amounts for
TB prevention among persons with HIV/AIDS and care of AIDS orphans that
could also be included in the HIV/AIDS category.

Definition of the budget categories within the Child Survival and
Disease (CSD) Programs Fund

In order to clarify the range of activities categorized in
the above allocations, the Committee, in consultation with AID,
provides the following explanation:

1. CHILD SURVIVAL AND MATERNAL HEALTH

Primary causes of morbidity and mortality for children and mothers

Supporting key child health and survival interventions that
focus on prevention, treatment, and control of the five primary
childhood killers: diarrheal disease, acute respiratory
infection, malnutrition, malaria (directed primarily at
children) and vaccine preventable diseases;
Introducing environmental health interventions to prevent
the spread of childhood diseases from environmental factors
such as contaminated water; and
Improving maternal health to protect the outcome of
pregnancy, neonatal and young infants, and to save the lives of
mothers, by improving maternal nutrition, promoting birth
preparedness, improving safe delivery and postpartum care, and
managing and treating life-threatening complications of
pregnancy and childbirth.

Micronutrients

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

Polio eradication

Partnering to strengthen polio eradication and vaccination
programs;
Supplemental polio immunization campaigns and improving
routine immunization; and
Improving acute flaccid paralysis surveillance, response
and linkages with other disease control programs.

2. Vulnerable Children \1\

Care and protection of children who are displaced or
vulnerable with an emphasis on strengthening family and
community capacity in identifying and responding to special
physical, social, educational, and emotional needs including:
---------------------------------------------------------------------------
\1\ Other accounts (e.g., Development Assistance and Economic
Support Fund) support programs addressing the issues of children
affected by violence and/or trafficked for illicit purposes.
---------------------------------------------------------------------------
Under the Displaced Children and Orphans Fund,
children affected by war, including child soldiers, as
well as orphaned, abandoned and street children;
Children affected by but not necessarily diagnosed
with HIV/AIDS;
Blind children;
Orphanages in Europe and Eurasia;
Trafficking of young women and children; and
Child labor.

3. HIV/AIDS

Prevention

Expanding behavior change interventions to prevent and
mitigate the impact of HIV/AIDS;
Preventing and managing sexually transmitted diseases
(STDs);
Preventing and managing TB and other opportunistic diseases
related to HIV/AIDS; and
Reducing mother-to-child transmission of HIV/AIDS.

Care

Increasing the capacity of public and private sector
organizations, particularly at the home and community level, to
prevent HIV transmission and support persons living with HIV/
AIDS, their caregivers, families and survivors;
Treating opportunistic infections, primarily tuberculosis,
in persons living with HIV/AIDS; and
Caring for children with HIV/AIDS.

Surveillance

Increasing the quality, availability, and use of evaluation
and surveillance information.

4. Other Infectious Diseases

Tuberculosis (TB)

Improving control of tuberculosis at the country level by
expanding the application of the Directly Observed Therapy
Short Course (DOTS) strategy and strengthening local capacity;
Developing and testing alternative approaches for TB
control;
Improving surveillance of TB and of multi-drug resistant TB
strains;
Conducting research to identify improved technologies/
methods for TB diagnosis and treatment; and
Preventing and treating TB in persons with HIV/AIDS and
their caregivers.

Malaria

Improving prevention, control and treatment of malaria and
other infectious diseases that are not currently vaccine
preventable.

Antimicrobial resistance and infectious diseases surveillance

Improving interventions to reduce the spread of
antimicrobial resistance; and
Improving capacity for surveillance and response for
infectious diseases, including at the local level.

5. Children's basic education

Expanding access to, completion of, and/or quality of basic
education.

NOTE: In general, two key principles--``direct impact'' and
``optimal use of funds''--are used when determining whether activities
are an appropriate use for the Child Survival and Disease Programs
Fund. Within each budget category delineated above, activities can
include interventions such as:
Development of management capacity and service delivery in
both public and private sectors;
Provider training, quality assurance, and improved
supervision;
Information, education and communication (IEC) activities;
Data collection, analysis, and evaluations (at a reasonable
cost) for decision making;
Operations and applied research;
Assistance in securing a stable and diversified financial
base;
More rational management and use of essential drugs/
commodities; and
Improving monitoring and surveillance capabilities.
Health systems and human capacity strengthening are inherent
elements of all programming aspects. Without them, the effectiveness,
quality, equity and sustainability of child survival and maternal
health, HIV/AIDS and infectious disease programs are questionable.

Promoting the Integrity of the Child Survival Fund

The Committee's effort to promote the integrity of the
Child Survival and Disease Programs Fund has made some headway
within AID's Office of Health and its Policy Planning Bureau.
New guidance for child survival and disease activities was
issued after consultation with the Committee. As a result,
every AID employee, contractor, and grantee has been given
direction on permissible uses of child survival and disease
funds. The rules are now clear. The Administrator has appointed
a coordinator of activities related to the Child Survival and
Disease Programs Fund, as the Committee directed last year.
More remains to be done by AID management. The budget
justification proposes numerous activities that clearly
separate CSD obligations from other accounts, but fail to make
a similar distinction in the budget narrative accompanying the
budget tables. This practice is counter to the express
direction of the Committee.
As the Committee has already informed the Administrator,
proposed activities included in the fiscal year 2001 budget
justification that combine programs, projects, and activities
funded from this account with programs, projects, and
activities funded from other funding sources will not be
accepted as valid for purposes of section 515 until
supplemental budget narratives and tables are transmitted to
the Committee in the proper form.
The Committee is again including bill language that
prohibits the use of certain funds in this account for
nonproject assistance, or cash grants, to governments. The
provision of cash grants as general budget support for
governments is no longer an appropriate development tool, given
current funding constraints. To the extent that cash grants are
necessary for countries in transition or for specific foreign
policy goals, funds are available through the ``Economic
Support Fund''.

child survival and maternal health: former Soviet Union

child survival and maternal health: micronutrients

The Committee supports continuation of programs for vitamin
A and C deficiency, iodine deficiency and other micronutrient
deficiencies and supports continuing these programs at least at
the request level of $25,000,000, including a significant
increase in the amount of funding provided for Vitamin A.
The Committee notes that iodine deficiency disorder is the
leading preventable cause of mental retardation in children.
The major remaining regions with iodine deficiency are in the
former Soviet Union and southeast Europe. The Committee
recommends that the Administrator of AID and the coordinators
of assistance to those regions in the Department of State
consider providing from other accounts at least $2,500,000 in
cooperation with Kiwanis International and UNICEF to help
eliminate iodine deficiency in the former Soviet Union and
Central and Eastern Europe. The provision from the Fund of up
to $2,250,000 in other regions would help Kiwanis International
complete its global campaign against iodine deficiency
disorder.

child survival and maternal health: polio eradication

The Committee recommendation includes within the child
survival and maternal health allocation not less than
$25,000,000 for the final phases of the program initiated by
the Committee in fiscal year 1996 to eradicate polio. Funds
should be used to provide for the delivery of vaccines, for the
development of the infrastructure necessary to implement the
program and to help support routine immunization. This funding
is meant to be in addition to the resources for the regular
immunization program of the Agency for International
Development. Rotary International and other collaborators in
this effort have informed the Committee that polio may not be
eradicated before the year 2002 because of the difficulty of
access in war-torn parts of Africa.

child survival and maternal health: vaccines and immunization

The Committee has funded procurement of polio and other
childhood vaccines directly through AID and indirectly through
the grant to UNICEF over many years. As discussed earlier,
private American foundations and international commercial
vaccine producers are now working with AID, the World Health
Organization, and UNICEF to save children by reducing the cost
and increasing the supply of vaccines that are currently used
mostly in industrial countries because of expense. Although the
United States has been the leading donor in child health, in
order to encourage private and other governmental donations,
the Committee provides authority for up to $37,500,000 to be
transferred by AID as a matching grant to a fund established
for this purpose by the new public/private Global Alliance for
Vaccines and Immunizations (GAVI). The allocation for the child
survival and maternal health budget category has been adjusted
to include GAVI. The budget request included $50,000,000 for
GAVI under the title IV heading, ``International Organizations
and Programs''.

Vulnerable Children

The Committee directs AID to allocate $30,000,000 for
displaced children and orphans and blind children in fiscal
year 2001. A substantial part of these and other available
resources are to be used in Romania, the former Yugoslavia,
Moldova, Ukraine, Russia, and Mongolia. AID has recently
initiated innovative programs in most of these countries at the
urging of Congress, and the Committee directs AID to adequately
funds these programs in fiscal year 2001.
Care for displaced children and orphans is limited in these
countries and in parts of Africa. Basic medical supplies are
scarce at most institutions around the world. In some cultures,
orphans are considered outcasts, especially those with
disabilities of any type. Some children can become healthy with
proper medical attention and returned to their families or
placed with domestic or foreign families through adoption.
Families with mentally or physically disabled children
would benefit from community support programs such as special
olympics.
Older children permanently placed in orphanages are often
dismissed from state care and thrown out on the streets to
survive without skills. Most teenage orphans find that their
only chance for survival is to participate in criminal acts,
including prostitution and selling drugs. United States
assistance in establishing a limited number of vocational-
technical centers will teach these orphans the necessary skills
to become productive members of society.
According to the World Health Organization there are 1.5
million blind children around the world and another 7 million
children suffering from extremely low levels of vision. The
Committee recognizes the work being done by Helen Keller
International and other organizations to assist blind children
around the world. Blindness can be prevented and/or treated
through simple and inexpensive methods, and many blind children
in developing countries can be cured of their disability
through simple operations and low cost care. The Committee
recommends that the AID program for children's blindness be
increased above the current level of $1,000,000.

hiv/aids prevention

The Committee for several years has provided funding and
encouragement to limit impact of the global HIV/AIDS epidemic
in the developing world and Eastern and Central Europe.
However, recent epidemiological reports indicate that the
pandemic continues to worsen dramatically, particularly in
south Asia and southern Africa. In response, several other
donor nations are increasing their global AIDS activities and
international institutions, notably the World Bank, are moving
AIDS and other infectious diseases to their priority list.
The fight against HIV/AIDS in poor countries cannot be
defined by the U.S. government only in terms of assistance
provided. If the Administration considers this virus a threat
to national security, then combating it requires an integrated
U.S. strategy involving various federal agencies. This strategy
should be communicated directly to the Committees on
Appropriations by the senior officials of the Department of
State, the Centers for Disease Control, and AID. Further, U.S.
embassies in countries where HIV is an emerging threat should
develop strategies to address the issue diplomatically.
As with all AID programs, the fight against HIV/AIDS
requires ``good development partners''. The rapid increase in
HIV infection in many poor countries can be attributed, in
part, to government leaders' refusal to publicly acknowledge
the crisis and their slowness in dedicating resources to fight
it. Government leaders have a responsibility to their citizens
to foster awareness and education, the causes of transmission,
and the scientifically proven methods to combat it. All AID
country strategies for HIV programs must include components to
encourage behavioral, cultural and social change.
The United States has long led the world's response to HIV/
AIDS and will expand its financial commitment as effective
methods of halting and reversing the worsening pandemic emerge.
For fiscal year 2001, the Committee urges AID to increase
funding for all of its international AIDS and related TB
activities from $175,000,000 in 2000 to at least $202,000,000
in 2001. Funding for UNAIDS should also be maintained at least
at its current level. Priority uses of the additional resources
should include microbicides, mother-child transmission, support
for affected orphans, and TB. As in past years, AID should
utilize to the maximum extent community-based, nongovernmental
organizations that have ``on the ground'' prevention and care
programs.
The Committee believes it is essential that increased
funding for HIV/AIDS be tied to measurable results. Among the
five year goals proposed by the Administration and UNAIDS, the
Committee is especially supportive of two:
(1) That by 2005, 50 percent of HIV infected pregnant
women in developing countries will have access to
interventions to reduce mother-to-child HIV
transmission, and
(2) That by 2005, orphans affected by HIV/AIDS will
have access to education and food on an equal basis
with their non-orphaned peers.
The Committee requests that AID report, not later than March
15, 2001 on progress to date in achieving these and other
measurable results in its HIV/AIDS and related child survival
and disease programs, and the Agency's expectations as to
whether and when these goals will be met.
The U.S. Department of State should begin documenting HIV/
AIDS-related human rights abuses for inclusion in its annual
country human rights reports; take high level diplomatic action
publicly condemning such violations when they occur; and
coordinate such human rights issues within the United States
Government.
The Committee has been urged by many members of Congress
and public witnesses to allocate between $60,000,000 and
$100,000,000 for the prevention and control of tuberculosis,
active cases of which are increasing as a result of
opportunistic infections by persons with HIV, known as TB/HIV.
The Committee's limited allocation and the need for balance
among competing needs precludes it from providing $100,000,000
for TB this year. However, based on information from health
providers in Africa, the Committee estimates that a significant
component of the current HIV/AIDS program is directly related
to TB/HIV. If AID provides the Committee with better estimates
for its TB/HIV funding at a later stage of the appropriations
process, the Committee will take them into consideration.
In addition to accounting for the close link between TB and
HIV, the Committee recognizes that there is an urgent need for
HIV and Sexually Transmitted Disease (STD) prevention methods
within the personal control of women. Since the early 1990s,
``topical microbicides'' have emerged as a promising new
technology for preventing STDs, including HIV. AID and the
National Institutes of Health have been active participants in
the International Working Group on Microbicides that
coordinates microbicide research and maximizes its impact.
Currently, AID invests only $2,300,000 annually on
microbicides. The Committee is aware that approximately 20
potential products are in various stages of development and
that funds are urgently needed to conduct clinical trials. The
Committee concludes that microbicides should be given a higher
priority within the bilateral HIV/AIDS prevention program, and
directs AID to devote not less than $10,000,000 from all
accounts to microbicides research and development, emphasizing
the special circumstances of drug delivery in developing
nations.
In addition to microbicides, the Committee urges AID to use
the additional funds provided in fiscal year 2001 to promptly
address emerging concentrations of TB/HIV, regardless of
region, applying actual lessons learned from nations that
halted and reversed the number of victims. Not less than
$5,000,000 is provided from the Fund and, as available, from
regional accounts for emerging epidemics in Ukraine, Russia,
Central Asia, and southeast Europe. Also, the Committee
supports efforts to provide a safer blood supply in the
Republic of South Africa and other advanced developing and
transition countries impacted by HIV/AIDS. These efforts should
include evaluation of promising blood decontamination
technologies.
The Committee anticipates that at least $8,000,000 will be
funded from the Economic Support Fund and accounts administered
by the Bureau for Humanitarian Response and a minimum of
$202,000,000 from the Child Survival and Disease Programs Fund.
The Committee directs that AID include all HIV/AIDS-related
activities, such as TB/HIV tuberculosis prevention programs, in
its reports on achieving these targets.

hiv/aids: international center for health and development in Africa

The Committee remains concerned about the implications of
the growing health crisis in sub-Saharan Africa and recommends
that the Centers for Disease Control (CDC) and the Agency for
International Development give priority attention to a detailed
proposal by the Morehouse School of Medicine. It is the
Committee's understanding that Morehouse seeks federal funding
to strengthen its International Center for Health and
Development, to train African health care workers, and to
conduct vital research on methods to improve the long-term
health care infrastructure in Africa. Partnerships in medical
training and education, research, and technical assistance in
field services could be particularly beneficial to those
African countries devastated by TB/HIV. The overseas activities
of the Center are compatible with AID policy objectives. The
Committee requests that AID reserve at least $2,000,000 for
this purpose until it makes a final decision on its relevant
component of the Morehouse Medical School proposal. AID should
provide the Committee with a copy of its written response to
the Morehouse proposal not later than July 31, 2000.

other infectious diseases: malaria

The Committee includes not less than the budget request of
$27,000,000 for the prevention of malaria, a re-emerging global
killer of children and major impediment to economic development
in many poor countries. The Bureau of Humanitarian Response is
urged to provide not less than $2,600,000 for malaria from its
grant program for private voluntary organizations, consistent
with current practice.
The challenges posed by resurgent malaria are most evident
in Africa. The recent Abuja conference of African heads of
state in support of the global Roll Back Malaria campaign
demonstrated Africa's own commitment to the common effort
against malaria. The Committee urges AID to increase its role
in helping African partners meet the Abuja goals of saving
500,000 children from malaria each year and protecting 15
million pregnant women from malaria-related complications
during pregnancy, especially low birth weight babies. Through
an expanded partnership with the private/commercial sector and
rapid expansion of existing child and maternal health programs,
AID can prepare itself for future funding increases in this
vital area.
The Committee is aware that programs protecting pregnant
women from malaria and responding to the emergence of drug
resistant strains of malaria can also be counted against
maternal health and antimicrobial resistance targets. It has no
objection to AID adjusting its coding system to account for
these dual purpose activities.

other infectious diseases: tuberculosis

The Committee recognizes that tuberculosis (TB) is the
major infectious killer of adults in the world, killing between
two and three million each year. This disease could result in
the deaths of up to 30,000,000 people in the next decade. TB
kills more women than any cause of maternal mortality and is
the major killer of persons with AIDS. Many of these will be
parents, whose orphans will be a burden on already stressed
societies. In addition, the Committee notes the threat to the
United States from this disease due to international travel and
immigration. An estimated 15 million Americans are currently
infected with the TB bacteria. Therefore the Committee includes
in the allocation for other infectious diseases $55,100,000 for
programs for the prevention, treatment, control of, and
research on tuberculosis. At least $4,900,000 is available as
requested in the regional account for the independent states of
the former Soviet Union. These amounts do not include
activities to prevent and manage opportunistic TB among those
with HIV/AIDS and their caregivers that are funded under the
HIV/AIDS allocation.
The Committee notes that the Agency for International
Development is collaborating with the Gorgas Memorial Institute
to promote regional TB control initiatives designed to address
the global TB epidemic--training, operational improvement, and
new approaches to disease control. The Committee strongly
supports the continuation of this initiative. At least
$2,000,000 is available for these activities during fiscal year
2001.
In its last two reports, the Committee requested AID to
assist Texas and Mexico combat a particularly threatening
outbreak of tuberculosis along their border. The Agency has
been more responsive this year, and the Committee urges
continued cooperation with the Texas Department of Health and
relevant offices of the federal and state governments of
Mexico.

other infectious diseases: antimicrobial resistance and surveillance

The Committee supports the efforts of AID and the Centers
for Disease Control to reduce the spread of antimicrobial
resistance. The Committee is aware of the special problems of
infectious diseases among patients hospitalized in Asia, Latin
America, and Africa, and encourages AID to encourage the use of
proven new technologies to combat antimicrobial resistance. The
Committee has been made aware of the work in this area by the
International Foundation for the Reduction of Infectious
Diseases, and suggests that AID cooperate with the Foundation.
In addition, AID is encouraged to continue improving capacity
for surveillance and response to infectious diseases at the
national and local levels.

infectious diseases: collaborative research by university medical
schools

The Committee is aware of and supports the renewed
engagement of many United States university medical schools and
medical research facilities in the global campaign against
infectious diseases, especially those which affect children. As
many contributed greatly to domestic public health progress in
earlier decades, the Committee welcomes their interest in the
new global campaign.
The Agency for International Development and multilateral
health and child survival agencies benefiting from this bill
are urged to give every consideration, and report back promptly
in writing to the Committee, on its response to detailed
proposals submitted by, among others:
The International Health Learning Center at Loma
Linda University;
The Gorgas Memorial Institute;
The Tulane University School of Public Health's
Department of Tropical Medicine; and
The University of Notre Dame.
The Committee notes the ongoing dialogue between AID and
George Mason University regarding cooperation on health
programs in Latin America. The Committee directs AID to provide
not less than $1,000,000 to support a proposal from George
Mason for this purpose.
The Committee also strongly supports research at such
institutions, funded by AID and UNAIDS, to develop microbicides
that could be of use in the developing world. The Committee
requests that AID report to the Committee on a bimonthly basis
regarding the status of proposals received from these
institutions.

basic education for children and child labor

The Committee is keenly aware that a child's education
provides an enduring opportunity for a healthier, more
productive life. An educated and well-trained population
directly contributes to sustained economic growth, poverty
alleviation, and the creation of democratic institutions.
Often, the highest poverty rates are found in nations with the
lowest education and literacy levels. Despite progress in
expanding access to basic education, more than 130 million
children around the world do not attend school, and there are
great educational disparities between boys and girls. There is
ample evidence in research and practice that investment in
basic education, particularly in girls' education, provides the
critical link to improved family health, enhanced status of
women, reduced child labor, and greater political
participation. Education also builds the capacity countries
require to benefit fully from trade and development
opportunities. Such investments achieve key components of U.S.
development strategy.
The Committee recommends that the Secretary of State and
the Administrator of AID establish a target funding level for
children's basic education of $118,000,000, of which
$103,000,000 would be derived from the Child Survival and
Disease Programs Fund and the remainder from the Economic
Support Fund and regional accounts.
Studies made available to the Committee have demonstrated
that in developing countries the greatest progress has been
made in reducing exploitative child labor where free and
compulsory schooling is widely available. Over the past two
years, the Committee has urged AID to commit at least
$10,000,000 to programs designed to expand universal access to
free and compulsory basic education for children who are
trapped in exploitative child labor. This year the Committee
recommends that AID consider a proposal to provide $1,500,000
to support Alfalit International, a private voluntary
organization with decades of experience providing free basic
education to children in Latin America and Africa.
The Committee has been informed that an Executive branch
decision was made to assign management and funding of programs
aimed at reducing foreign exploitative child labor to the
Department of Labor, a domestic agency. The Department of
Labor's fiscal year 2001 budget request includes $55,000,000
and 17 federal job equivalent positions ``to help developing
countries with high levels of abusive child labor to enroll and
retain these children in basic education''. None of the funds
provided in this bill may be used for programs managed by the
Department of Labor.

GRANT TO UNITED NATIONS CHILDREN'S FUND (UNICEF)

Of the funds provided in this account, $110,000,000 is
provided as a contribution in grant form to the United Nations
Children's Fund. However, this does not preclude the Agency for
International Development from providing additional funding for
specific UNICEF projects not cited in this report, as may be
appropriate.
The Committee requests that the Secretary of State, in
consultation with UNICEF, provide the Committee not later than
September 15, 2000, a detailed financial breakout of the child
survival and disease programs benefiting from United States
contributions to UNICEF between 1996 and 1999, utilizing the
categories and subcategories defined above, as well as general
headquarters costs.

Development Assistance

Fiscal year 2000 level................................ $1,228,000,000
Fiscal year 2001 request.............................. 948,822,000
Committee recommendation.............................. 1,258,000,000

The Committee recommends $1,258,000,000 for a general
account for development assistance. The amount recommended is
$309,178,000 above the budget request and $30,000,000 above the
fiscal year 2000 level.
Funding in this account includes worldwide activities for
free market economic development, agriculture, rural
development, population, adult literacy and adult basic
education, environment, energy, science and technology and
other programs related to longer-term development.
The Committee recommends the continuation of bill language
to prohibit the use of funds for any activities in
contravention of the Convention on International Trade in
Endangered Species (CITES) in order to address concerns that
AID funded activities in Zimbabwe are contributing to trade in
elephant ivory.
The Committee recommends the transfer of up to $2,000,000,
from the ``Development Assistance'' account, to support
development credit activities.

AFRICAN DEVELOPMENT FOUNDATION

Within the ``Development Assistance'' account, the
Committee recommends funding for the African Development
Foundation (ADF) at the budget request level of $16,000,000,
which is an increase of $1,600,000 above the fiscal year 2000
level. The Committee has once again included bill language
allowing ADF grantees to hold funds in interest bearing
accounts provided that any interest earned be used for the same
purposes as the grant. Also, the Committee has provided ADF
with authority to make project grants in excess of $250,000
provided that the Committee be notified in advance. The
Committee expects the ADF will only exercise this authority in
rare instances.
Since its inception, the ADF has provided more than 1,300
grants in 26 African countries to build local capacity and
emphasizing self-help. These ADF grants have helped increase
income and expand services for Africa's poor. The Committee
supports the efforts of the ADF staff and Board to garner
outside funding and encourages the Foundation to continue to
explore other sources of funding.

inter-american foundation

The Committee recommends up to $10,000,000 for the Inter-
American Foundation from within the ``Development Assistance''
account, $10,000,000 below the budget request. The Committee
believes the grassroots development objectives of the
Foundation, established in 1969, are now adequately integrated
into the programs of AID and through the work of
nongovernmental organizations throughout the hemisphere.

restrictions on use of population funds

The Committee has continued prior year language in the bill
that requires that none of the funds appropriated in this bill,
or any unobligated balances, be made available to any
organization or program which, as determined by the President,
supports and participates in the management of a program of
coercive abortion or involuntary sterilization. The bill
language also states that funds cannot be used to pay for the
performance of abortions as a method of family planning or to
motivate or coerce any person to practice abortions. Further,
the language indicates that in order to reduce reliance on
abortions in developing countries, population funds shall be
available only to voluntary family planning projects which
offer, either directly or through referral, information about
access to a broad range of family planning methods and
services. An additional provision in the bill requires that in
awarding grants for natural family planning under section 104
of the Foreign Assistance Act, no applicant shall be
discriminated against because of such applicant's religious or
conscientious commitment to offer only natural family planning.
The Committee also has continued prior year language that
states that nothing in the Development Assistance account
portion of the bill is to alter any existing statutory
prohibitions against abortion which are included under section
104 of the Foreign Assistance Act. Further, the Committee has
continued prior year language which states that project service
providers or referral agents cannot implement or be subject to
quotas or other numerical targets of total number of births,
number of family planning acceptors, or acceptors of a
particular method of family planning. This provision is
identical to language in the fiscal year 2000 Act.

PERU POPULATION PROGRAM

The Committee is concerned by reports by an independent
group and by the Peruvian human rights ombudsman's office
(Defensoria del Pueblo), that informed-consent problems still
persist in Peru after the implementation of the ``Tiahrt
amendment'' in fiscal year 1999. The Committee directs the AID
Office of Inspector General to investigate, report and make
recommendations on this matter not later than March 1, 2001.
The Committee was disturbed that AID failed to report to
Congress the violations involving coercive family planning
practices documented by the human rights ombudsman's office
simply because AID funds being used (from fiscal year 1998)
were not subject to Tiahrt restrictions. The Committee expects
that all population funds should be held to the standard of
current law and that, in the future, AID should err on the side
of informing the Committee too often, rather than too rarely.
Finally, the Committee is concerned about the continued
relationship between population service providers and other
welfare service providers (i.e. food, clothing, general health
care). These services should be provided separately to ensure
that women are not unduly pressured to accept population
services in exchange for welfare service.
The Committee believes that, as the largest single donor to
Peru's population program, AID has a special responsibility for
ensuring that these programs are truly voluntary. The Committee
is pleased with the various protections AID is putting in place
to ensure that the Tiahrt amendment will be enforced in Peru
and directs AID to implement these same protections in the
other countries receiving population funding from AID. The
Committee is encouraged by the publication of the norms and by
eliminating as an indicator of success or failure the number of
family planning acceptors, both of which should be a model for
other countries in which AID carries out population programs.
Also, the Committee is encouraged by the planned expansion of
AID funding to the human rights ombudsman's office not only to
investigate cases brought to its attention but also to
undertake ``outreach'' to victims who have not come forward.
In order to regain confidence in AID's resolution to
monitor and report Tiahrt amendment violations, the Committee
directs AID to provide biannual reports, beginning not later
than March 1, 2001, on the following:
Its efforts to implement recommendations of the
Inspector General.
Its efforts to monitor and improve Peruvian family
planning programs, in addition to the existing statutory
reporting requirements of Tiahrt violations. These monitoring
efforts shall include: regular contact with implementing
partners; field visits; client surveys; and regular audits and
inspections by AID's Inspector General, the human rights
ombudsman's office and, as directed by Congress, the General
Accounting Office.
Its efforts to implement similar protections in
other countries receiving population assistance.
Its efforts to implement new protections and any
reported allegations of Tiahrt amendment violations in the AID
program in Peru.
The steps taken to work with the Peruvian Ministry
of Health to implement changes that ensure that population
programs and other welfare services are provided separately.

GLOBAL ISSUES: AID GLOBAL BUREAU PROGRAMS

The Committee directs AID to reserve sufficient funds from
its discretionary Development Assistance budget for the Global
Bureau's Centers for Economic Growth and Agricultural
Development; Environment, Energy and Infrastructure; and
Democracy and Governance. In order for the Bureau to remain
AID's technical center for excellence and mission support, the
Committee has included core funding for each Center and
component office at not less than the FY 2000 level. The
Committee intends that each Global Bureau Center and office
should be in a position to respond to emerging opportunities,
reward exceptional performance, and test cost-effective
development approaches not otherwise included in Executive
branch and Congressional directives. In addition, each Center
and office should use core funding to ensure that new, small,
minority and disadvantaged contractors, cooperating
institutions, and grantees are fully and fairly considered for
task orders and awards.

Global Issues: Human rights and democracy

The Committee expects AID to give adequate weight to the
human rights and governance practices of recipient countries,
including as reported in the Department of State's annual
Country Reports on Human Rights Practices. Although the
Committee believes that need and U.S. foreign policy goals
should be the primary criteria for determining whether or not a
country should receive assistance, the Committee also believes
that the assistance--whether through nongovernmental
organizations or directly through official channels--will have
a far greater chance of truly helping the citizens in those
countries which respect the rule of law and the rights of their
people. The Committee notes the disturbing recent trend by
leaders of long-time foreign assistance recipients--in Peru,
Zimbabwe, and Haiti, for example--to undercut democratic
processes and to curtail respect for human rights. Further, a
number of traditional aid recipients are currently involved in
military conflicts and have restricted the basic freedoms of
their citizens. AID should continue to give significant weight
to the record of human rights and democratic development of
proposed recipient countries in the distribution of assistance
provided under this Act.

Global issues: literacy and education

The Committee recognizes that expanding access to
education, especially combating child and adult illiteracy, is
critical to long-term development. The Committee is aware that
the bulk of AID funds are for children's basic education
programs funded through the ``Child Survival and Disease
Programs Fund''. However, the Committee supports the work of
Alfalit International, an educational nongovernmental
organization dedicated to promotion of literacy, elementary
education, and community development in Africa and Latin
America. Alfalit's proven record during the past three decades
has helped significantly reduce child and adult illiteracy
throughout Latin America and Africa. The Committee directs AID
to provide $1,500,000 for Alfalit to jointly develop and
implement programs to combat adult illiteracy in countries in
which AID operates.

global issues: energy

The Committee urges that AID's Office of Environment,
Energy, and Infrastructure be funded at a robust level. AID
projects should continue to be developed and carried out in
collaboration with U.S. industry, taking into account future
energy resource development and United States energy security
requirements. Projects should be undertaken in countries with
the greatest potential for success, regardless of the presence
of AID field missions. Included in these efforts should be
reform, project design, innovative project financing, trade and
reverse trade missions, training, and technology transfer and
collaboration.
The Committee supports AID programs designed to develop the
commercial energy sector in Africa. Africa has great economic
potential, which has been stifled, in part, by lack of adequate
and reliable energy. The Committee encourages AID to work with
committed African governments and private entities to bring
about sectoral, legal, and regulatory changes, as well as the
institutional capacity, necessary to develop commercial energy
opportunities.

Global Programs: the role of girls and women in development

The Committee recognizes the importance of improving the
economic and social situation of women and girls through
respect for legal rights and expanded access to educational
opportunities, adequate health care, and credit. The Committee
supports the work of AID's Office of Women in Development in
these areas. Therefore, the Committee recommends at least
$15,000,000 for AID's Women in Development programs, including
funds transferred to central offices from overseas missions.
Although AID is to be commended for previously devoting
considerable attention to the needs of women and girls,
additional attention is needed.
The Committee commends the work of the AID Advisory
Committee on Voluntary Foreign Assistance (ACVFA) and its
efforts in monitoring the implementation of AID's Gender Plan
of Action. As a result of ACVFA's work, an assessment of the
Gender Plan of Action will be carried out and completed before
the end of this calendar year. The Committee looks forward to
learning about the findings of this assessment. Further, the
Committee supports the work of Women's Campaign International
(WCI) in training women in political processes in emerging
democracies and encourages AID to work with WCI in developing
countries in which AID undertakes governance programs.

global issues: biodiversity

The Committee applauds the accomplishments of AID in
integrating biodiversity and forest management in its economic
and social development programs. The Committee urges AID to
consider biodiversity a high priority and is pleased with the
Administration's budget request for biodiversity programs for
fiscal year 2001. The Committee directs AID to provide not less
than $70,000,000 in fiscal year 2001 for its biodiversity
programs. Further, the Committee continues to support the use
of nongovernmental organizations through cooperative agreements
and other innovative, cost-effective financing vehicles. The
Committee also urges AID to pursue conservation and tropical
forest management in all geographic regions where globally
outstanding habitat and species are threatened, including
border regions and in so-called AID ``non-presence'' countries.
The Committee recommends that AID provide $500,000 to
support the Peregrine Fund's Neotropical Raptor Center in
Panama to conserve birds of prey in the Panama Canal watershed
area. The Peregrine Fund, established in 1970 as a non-profit
organization, has partnered successfully with AID in the past.
The Committee notes that the Center expects to receive
significant private financing for this project as well.
The Committee encourages AID to support the work of Earth
University in San Jose, Costa Rica. For more than 10 years,
Earth University has worked with more than two dozen U.S.
universities on research projects designed to balance
development and conservation in the areas of tropical forest
preservation, reforestation, and biodiversity.

global issues: kyoto protocol

Once again, the Committee has included a general provision,
section 577, prohibiting the use of funds for the purpose of
implementation, or in preparation for implementation, of the
Kyoto Protocol.
This provision shall not be read to restrict the
President's constitutional authority to negotiate international
agreements and shall not apply to any activities authorized
under existing United States law.
The Committee notes that the ratified United Nations
Framework Convention on Climate Change (UNFCCC) is not self-
executing. The Committee also notes that mechanisms found
solely in the Kyoto Protocol have never been authorized.
The Byrd-Hagel Resolution (S. Res. 105-98), which passed
with a vote of 95-0 in July 1997, remains the clearest
statement of the will of the Senate with regard to the Kyoto
Protocol. Through the prohibition contained herein, the
Committee is committed to ensuring that the Administration not
implement the Kyoto Protocol without prior Congressional
consent, including approval of any implementing legislation,
regulation, programs, or initiatives.
To the extent that technical assistance and training,
research and policy analysis, dissemination of findings of
research and policy analysis, and the sponsoring of conferences
are approved by Congress and funded by the American taxpayer,
these activities must be balanced. Balance does not mean merely
that there is an acknowledgment of viewpoints different from
those of the Administration, but that qualified viewpoints are
included in numbers equal to those representing the
Administration's positions.
The Committee encourages the commercial export of United
States technology that has positive effects on energy use and
the environment.
The Committee notes with disapproval that nearly three
years after the Kyoto Protocol was adopted on December 11,
1997, it still has not been submitted to the Senate for advice
and consent as to ratification. The Committee also notes that
the Kyoto Protocol has not yet entered into force pursuant to
Article 25 of the Protocol.

economic growth: overview

The Committee considers free market economic growth, and
the AID programs designed to lead directly to growth, the
Agency's most important work in Africa, Latin America and Asia.
Simply put, without sustained economic growth, AID's
development programs for health, population, environment and
other purposes, can have only marginal long-term benefits in
poor countries.
In the near-term, the Committee continues to support the
use of AID resources for basic education and health improvement
through the ``Child Survival and Disease Programs'' account.
But improved social conditions of children only matter if the
future economies of these countries can provide employment for
these healthier, better educated citizens. Therefore, the
Committee encourages AID to increase funding for free market
economic development in its development programs in each of
these regions.
The Committee continues to support AID technical assistance
programs to encourage macro-level economic growth. These
include programs to assist with privatization of state-run
industry and legal and regulatory reform to modify trade and
tax barriers which stifle local entrepreneurs and which deter
U.S. investment. In addition, AID technical help for improving
energy, transportation, telecommunication, and finance sectors
is key to directly improving the economic climate of poor
countries. Essential to this, of course, AID must continue to
search out reform-minded government leaders without whom these
programs cannot succeed.
AID non-project assistance programs, or cash grants, to
encourage sectoral reform or to ease transitions from state
control to private ownership in poor countries have had only
limited success. When governments are already committed to
reform, non-project assistance can boost these efforts in the
short-term. However, attempts to encourage non-reformist
governments into changing bad policies by offering cash
enticements will not work. The Committee discourages the use of
non-project assistance in Africa where access to American
technical know-how is in higher demand than direct cash
assistance.
Microenterprise, while unable to alter economic indicators
on a national scale, can significantly improve personal and
family incomes, thus providing money for school fees, health
supplies, and more nutritious food, and stimulating economic
growth at the community level. Also, programs of collateral
importance to economic growth, such as girls' and women's
education and training programs, can assist in opening the
marketplace to females.

Economic growth: agriculture

The Committee believes that agricultural development is
central to creating free market economic growth in developing
countries. By helping families grow more food that is more
nutritious, hunger, malnutrition, and disease among women and
children become less prevalent. By increasing incomes of rural
families, the engine of economic development in these countries
is being started. The Committee recognizes that AID has again
included agricultural development as one of its key goals for
its development programs. However, the Committee is concerned
that agriculture programs have received only slight increases
in the past two years.
The Committee supports partnerships between U.S.
agribusiness and the emerging private sector agribusiness in
developing countries. Projects to promote these partnerships
leverage AID's development resources by increasing the private
sector's investment of resources in developing countries, which
leads to increased economic growth and stronger trade and
investment ties between the U.S. and developing nations.
Further, the Committee recommends that AID emphasize the
private agriculture sector in its projects, including private
farmers and household producers, credit programs, and private
sector supply and market services.
The Committee recommends AID consider supporting the
establishment of a Center to Promote Biotechnology in
International Agriculture at Tuskegee University. This center
will promote extension and outreach aimed at policymakers,
media, farmers and consumers in cooperation with local
scientists with an emphasis on agricultural genetic technology
applications designed to reduce hunger, malnutrition, and
improving rural incomes in developing nations.
The Committee also recommends that USAID provide $2,000,000
for non-governmental organizations such as Food for the Poor to
develop sustainable farming programs in Haiti.

Economic growth: microenterprise

Microenterprise has proven its effectiveness in promoting
economic growth in many of the poorest countries and allowing
poor people, especially women, to lift themselves out of
poverty and to create and expand micro businesses which raise
living standards. The Committee recognizes that microenterprise
cannot lift an entire nation out of poverty--broad policy
reforms and responsible stewardship of resources at the
national level are essential--but microenterprise programs can
complement sound macroeconomic policies by providing increased
incomes at the community level. The Committee recommends that
microenterprise funding, including the use of local currencies,
be provided at least at the program level provided in 2000. The
Committee believes that AID should make its best effort to
reach a program level of $152,000,000. Of these funds, the
Committee expects AID will devote at least fifty percent to
poverty lending programs. The Committee directs AID to report
in writing not later than March 1, 2001, on the proposed fiscal
year 2001 funding level for microenterprise and on AID's
efforts to meet the Committees other directives regarding the
microenterprise program.
The Committee has modified existing bill language by
directing that not less than one-half of all funds appropriated
under this Act for the Microenterprise Initiative shall be for
programs providing loans in the following amounts to very poor
people, especially women, or for institutional support for
organizations primarily engaged in making microenterprise
loans: $1,000 or less in the Europe and Eurasia region,
including North Africa; $400 or less in the Latin America
region; and $300 or less in the rest of the world.

economic growth: the institute for liberty and democracy

The Committee supports the work of the Institute for
Liberty and Democracy (ILD), which provides technical
assistance for the establishment of property rights as a means
of maximizing capital formation in the developing world. A
major obstacle to free market economic growth throughout much
of the developing world is the absence of legal instruments
that are critical for the production of capital. As ILD, based
in Lima, Peru, has documented extensively, many of the poor
already possess the assets they need to make a success of
capitalism. However, the poor hold these resources in what the
Institute characterizes as ``defective'' forms: houses built on
land whose ownership rights are not adequately recorded, or
unincorporated businesses that do not have legal instruments as
mechanisms for raising investment capital.
The Committee recognizes that the concepts promoted by the
Institute for Liberty and Democracy can make significant
contributions to free market economic development in much of
the developing world and encourages AID to increase its support
for ILD's work. ILD programs have proven successful in Peru,
Egypt, the Philippines and Haiti, and the Committee believes
similar technical assistance programs can be initiated in many
other developing countries.

Economic growth: development of credit unions and cooperatives

The Committee continues its support for credit union and
cooperative development in which U.S. cooperatives share their
self-help business approaches with developing and market
transition countries. Cooperatives are a means to lift low-
income people out of poverty through their own efforts by
mobilizing equity and savings for community-based economic
growth.
African credit union movements in more than 28 countries
represent an excellent opportunity to provide microcredit and
safe savings to millions of Africans. The Committee encourages
AID to use this network to greatly expand microfinance
programs, particularly in South Africa where the poor majority
have had limited access to community-based financial services.
The Committee is concerned that AID has not provided
sufficient support for rural electric and telecommunications
cooperatives that serve rural people in developing countries.
AID must consider the importance of rural electrification and
telecommunications for small business growth, and not focus
resources solely on national policy initiatives that mostly
benefit urban residents.

economic growth: international intellectual property institute

The Committee encourages AID to provide $1,000,000 to
support the International Intellectual Property Institute
(IIPI) in its efforts to help developing countries establish
the minimum international standards necessary to protect and
attract U.S. intellectual property industries. The past decade
has seen tremendous economic growth in intellectual property
industries such as software, music and pharmaceuticals. Yet,
because of an inability to provide protection for such
property, developing countries have been largely unable to
participate in this economic expansion. AID support for IIPI
training and technical assistance programs can promote sound
intellectual property systems which protect American businesses
and which foster free economic growth in developing countries.

latin america and the caribbean: overview

The Committee is pleased the Agency for International
Development responded to report language from previous years
urging that greater emphasis be provided for programs in Latin
America and the Caribbean. The Committee reiterates its
intention that the allocation of funds for this region through
this account and through the ``Economic Support Fund'' should
be at least at the combined fiscal year 2000 level, excluding
emergency supplemental funding.
The Committee directs that AID provide not less than
$10,000,000 of the funds dedicated to Latin America and the
Caribbean for grassroots programs and projects to promote
equitable, responsive, and participatory self-help development.
The goal of this assistance should be to focus on human
development, foster self-reliance, and improve the quality of
life for the people in the region.

latin america and the caribbean: democracy

The Committee is concerned about political stability and
democracy in Latin America and the Caribbean. In recent years,
democratic processes, rule of law, and more transparent
government institutions have emerged. In fact, it is widely
known that during much of the 1990s, the entire hemisphere,
except for Cuba, had democratically elected governments. These
improvements have been brought about, in part, by U.S.
diplomacy and assistance. Unfortunately, as this past year's
events in Ecuador, Peru, Haiti, Venezuela, Paraguay and
elsewhere have shown, democratic institutions throughout Latin
America remain fragile. These weak institutions undercut
American security, economic and political goals. The Committee
urges AID's Latin America and Global Bureaus to refocus their
attention on democracy and governance in the region to ensure
that the gains of the past decade are not lost. Further, to
help ensure that Cuba's future transition from a centrally
planned to a market-based economy can be achieved rapidly and
peacefully, the Committee encourages AID to support the
University of Miami's Institute for Cuban and Cuban-American
Studies through its Cuba Transition Project (CTP).

Latin America and the Caribbean: Mexico

The Committee calls on the Secretary of State to encourage
the government of Mexico and Zapatista National Liberation Army
(EZLN) to take steps which create conditions for good faith
negotiations that address the social, economic, and political
causes of the conflict in Chiapas, Mexico, to achieve a
peaceful resolution to the conflict. The Committee urges the
Government of Mexico to give higher priority to criminal
justice reforms that protect human rights including arbitrary
detention, torture, disappearances, attacks against human
rights monitors, extrajudicial killings and the failure to
prosecute individuals responsible for these crimes. In
addition, the Committee urges the Government of Mexico to
implement the recommendations of the Inter-American Commission
on Human Rights, particularly with regard to U.S. citizens and
others who have been expelled from Mexico in violation of
Mexican and international law. Further, the Committee was
pleased that the United Nations High Commissioner for Human
Rights (UNHCHR) visited Mexico last year and the Committee
looks forward to the prompt conclusion of a technical
cooperation agreement between the Mexican Government and the
UNHCHR.

latin america and the caribbean: central america initiatives

The Committee continues to support U.S. assistance to
Guatemala to enhance implementation of the peace accords.
However, the Committee is concerned about a lack of progress in
certain areas, such as strengthening Guatemala's criminal
justice system. The Committee urges the Government of Guatemala
to ensure diligent investigations and prosecutions of human
rights cases, including the assassinations of Bishop Juan
Gerardi and anthropologist Myrna Mack and the wide-scale
intimidation of SITRABI union members. The Committee
congratulates the Government of Guatemala for its recent
acceptance of state responsibility for a number of cases
pending before the Inter-American Commission on Human Rights,
and its commitment to follow the recommendations of the
Commission in this regard.
The Committee has been made aware of the United States-
Honduran Presidential Program of Investments Alliance (USHPPIA)
and encourages AID to provide at least $3,000,000 to support
this initiative. The Administrator of AID is urged to work with
the Metro Vision Economic Partnership for the implementation of
this program. AID shall report to the Committee not later than
March 1, 2001, regarding this program and is encouraged to
include the USHPPIA in its fiscal year 2002 budget request.
The Committee recognizes the important humanitarian gesture
by the Government of Costa Rica to accept more than 135,000
migrants from Nicaragua in recent years, the majority of whom
have arrived as a result of economic problems following
Hurricane Mitch. The Committee directs the use of AID
resources, through a mix of grants and innovative non-sovereign
credit programs, to support the Government of Costa Rica's
$84,171,000 plan to provide an integrated housing,
infrastructure and microcredit program in Costa Rica. AID's
Latin America and Global Bureaus are directed to consult with
the Committee during the development of this program.

Latin america and the caribbean: parks in peril

The Committee notes its strong support for the existing AID
Parks in Peril program, a partnership with the private sector
to promote biodiversity conservation in imperiled ecosystems
throughout Latin America and the Caribbean. The Committee
believes that protection of rare ecosystems is important from
an environmental standpoint and also serves the long-term
economic interests of these nations and the interests of the
United States. AID/Parks in Peril has worked at 37 sites in 15
different countries, comprising more than 28 million acres. It
has made significant progress at turning ``paper parks''--those
created by governments, but not adequately maintained--into
genuine protected areas. Since its inception, Parks in Peril
has received $37,500,000 from central and mission AID funds,
formally matched by more than $14,300,000 from The Nature
Conservancy, foreign partners, and foreign governments, and has
indirectly leveraged more than $268,000,000 from non-AID
sources. The Committee welcomes the prospect of ``PiP 2000'', a
renewed program that seeks to extend the influence of Parks in
Peril more broadly.

Latin America and the Caribbean: Corps of Engineers

The Committee is pleased that the State Department and AID
have begun to utilize the planning, engineering and design,
environmental, and technical capabilities of the U.S. Army
Corps of Engineers, particularly in Latin America where the
Corps has existing field offices in Honduras, El Salvador,
Panama, Colombia, Bolivia, and Peru. A partnership between the
Corps and AID that takes advantage of these capabilities can
significantly contribute to the strategic interests of the
United States. The Committee intends that the State Department
and AID use the Corps to a greater extent to support such
activities as child survival (water and sanitation);
development assistance; disaster assistance; Transition
Initiatives; and narcotics control and interdiction. Further,
the Committee expects that the Department of State and AID will
not establish additional engineering capabilities for
activities that can be accomplished by the Corps. The Committee
requests that AID and the Department of State report separately
within 60 days of enactment into law of this Act regarding
plans to develop programs with the Corps during fiscal year
2001, including steps to develop a Memorandum of Agreement with
the Corps.

latin america and the caribbean: jamaica

The Committee urges the government of Jamaica to take all
steps necessary to determine the whereabouts and well being of
a young American travel reporter, Ms. Claudia Kirschhoch, who
has been missing since she was last seen on May 27, 2000, in
Negril, Jamaica. Further, the Committee urges the government of
Jamaica to cooperate fully with and avail itself to the
assistance of the U.S. Federal Bureau of Investigation in this
case.

africa: overview

The past year has not been kind to sub-Saharan Africa. In
fact, Africa today faces huge obstacles to achieving long-term
economic and social development. These include:
Natural disasters, including famine in the Horn
and floods in southern Africa, devastating Mozambique, which
enjoyed Africa's highest annual growth rate.
Conflicts involving the governments of Angola,
Burundi, Congo, Eritrea, Ethiopia, Liberia, Rwanda, Sierra
Leone, Sudan, Uganda, and Zimbabwe, which divert national
treasuries away from social and economic development programs.
Diseases, especially HIV and tuberculosis, which
are destroying millions of lives today and whose long-term
economic toll may not be known for years. For example,
Botswana, among the most stable and wealthy nations in Africa,
faces HIV infection rates of more than 35 percent.
Rulers, from Kenya to Liberia to Zimbabwe, who
thwart the democratic wishes of their people and who misuse
national wealth.
While these obstacles are daunting, they are not
insurmountable. And the United States is helping. In fiscal
year 2000, Africa continued to receive the largest percentage
of AID development resources of any region. Further, the
Committee again directs AID that funding allocations from
within the unified ``Development Assistance'' account for sub-
Saharan Africa in fiscal year 2001 be at least equal to the
allocation provided in 2000. Also, the Committee expects that a
significant portion of the resources provided in the ``Child
Survival and Disease Programs Fund'', especially funds for
infectious diseases, including HIV and TB, will directly assist
the peoples of Africa.
The following is an estimate of the development,
transition, and humanitarian assistance recommended in the
fiscal year 2001 bill for sub-Saharan Africa.

Assistance for sub-Saharan Africa \1\

Development Assistance.................................. $506,667,000
Child Survival and Disease Programs Fund................ 294,673,000
African Development Foundation.......................... 16,000,000
International Disaster Assistance....................... 114,000,000
AID Office of Transition Initiatives.................... 12,500,000
Peace Corps............................................. 55,000,000
Refugee and Migration programs.......................... 135,000,000
UNICEF \2\.............................................. 54,000,000
African Development Fund................................ 72,000,000
International Development Association \3\............... 288,000,000
African Development Bank................................ 3,100,000
--------------------------------------------------------
____________________________________________________
Total............................................. $1,550,940,000

\1\ In addition to the accounts included in this table, the Committee
expects significant funding for sub-Saharan Africa from the security-
related accounts in the bill, including the Economic Support Fund,
Foreign Military Financing program, International Military Education and
Training account, International Narcotics Control and Law Enforcement
program, humanitarian demining funds, and the Peacekeeping Operations
account. In addition, AID expects to provide up to $161,450,000 in P.L.
480 food assistance to Africa in fiscal year 2001 and from Debt
Restructuring funds in this bill.
\2\ UNICEF dedicated approximately 49 percent of its resources to sub-
Saharan Africa in 1999. UNICEF expects this percentage to continue.
\3\ The IDA-12 replenishment targeted 50 percent of all IDA credits to
sub-Saharan Africa countries.

The Committee directs AID to continue its programs to
address each of the challenges described above, with special
attention to programs which lead directly to economic growth
and increased incomes. These include agriculture, technical
assistance for policy reform and privatization, and
microenterprise. The Committee expects that AID funding for the
broad range of programs in Africa will be balanced, so
resources are available to support an integrated approach to
development. AID programs in population, family planning, and
child and maternal health, while valuable, do not lead directly
to increased incomes. As such, the benefit of development
dollars provided for these activities will be limited unless
African nations can achieve long-term economic growth which
creates new jobs and increases incomes of the majority of their
citizens.
The Committee does not recommend a separate account for the
``Development Fund for Africa'', but notes that authorities
available for the ``Development Fund for Africa'' apply in
providing assistance to sub-Saharan Africa through the
``Development Assistance'' account.

Africa: horn of africa

The Committee remains concerned about the fragile food
security situation in the Horn of Africa. Famine conditions
threaten more than 16 million people in Ethiopia, Sudan,
Somalia, Kenya, Uganda and Djibouti. Conflict has exacerbated
these famine conditions by hindering the delivery of
humanitarian assistance and by creating scores of internally
displaced people and refugees.
The Committee supports the efforts of The International
Research Institute for Climate Prediction (IRI) to provide
assistance to AID's Office of Foreign Disaster Assistance in
predicting likely effects of weather patterns on Africa--
especially the Greater Horn of Africa region. To further this
important work, the Committee recommends that AID commit
$500,000 for the implementation of a modeling effort focused on
climate impacts on water, including water supply, water-borne
diseases, and agriculture, in collaboration with the Nairobi
Drought Monitoring Center. The Committee believes these efforts
can help achieve greater food security and stability in the
region. The Committee encourages AID to consider a similar
climate prediction monitoring program for southern Africa.

Africa: eritrea and ethiopia

The Committee is concerned by the military conflict between
Ethiopia and Eritrea and is disappointed that these nations
again returned to war, rather than peacefully resolving this
territorial dispute. In the past year, famine has swept through
much of Ethiopia endangering the lives of millions, but the
Ethiopian Government continues to obstruct the delivery of
international humanitarian assistance. Meanwhile, these two
nations--among the poorest in the world--continue to spend
significant resources on this conflict. Recent reports estimate
that the two nations combined spent more than $800,000,000 on
their militaries in 1999. These resources could have been
directed toward social development and economic growth. The
Committee does not support continued high levels of assistance,
especially nonproject assistance, to nations whose governments
choose to dedicate scarce national resources to waging war
instead of funding programs beneficial to their citizens
Further, the Committee is concerned that this conflict has
undercut regional initiatives in the Horn of Africa which are
mutually beneficial to the U.S. and countries in the region.
The Committee has made assistance to Eritrea and Ethiopia
subject to notification (section 520) and expects that the
Executive Branch will not engage in programs directly with
either government, especially those involving nonproject
assistance or debt relief, until it can be demonstrated that
these governments have ceased offensive military action and
have discontinued the allocation of scarce budget resources to
purchase weaponry.

Africa: Assistance to Southern Sudan

The Committee believes that the Administration can and
should do more to support the democratic opposition in Sudan
with the ultimate goal of bringing peace to the people of
southern Sudan. The Committee supports the inclusion of Sudan
on the list of terrorist nations and encourages the
Administration to step up efforts to isolate the Khartoum
regime. Further, the Committee is deeply concerned about the
allegations of trafficking of human beings and slavery in
Sudan. The Committee directs that the Secretary of State
provide a complete and comprehensive report about these
allegations, and the efforts by the Department of State to
investigate these allegations, not later than January 15, 2001.
The Committee continues its support for Operation Lifeline
Sudan (OLS), a multilateral effort to provide desperately
needed food and humanitarian relief to southern Sudan, funded
in part by AID's Bureau of Humanitarian Response (BHR).
However, without the consent of the government of Sudan, OLS is
unable to provide desperately needed humanitarian aid to many
opposition-controlled regions of Sudan. The Committee urges AID
to significantly increase resources to nongovernmental
organizations working in areas underserved by OLS and commends
the Administration for doing so in recent years.
The Committee also supports AID's Sudan Transitional
Assistance for Rehabilitation (STAR) program, begun in 1998, to
assist in the establishment of functioning local government and
in the operation of small-scale municipal projects. The
existing STAR program has supported training for leaders in the
National Democratic Alliance in the role of local government
administration and in human rights. The Committee directs that
not less than $5,000,000 be made available to promote
democratization and peace and reconciliation initiatives in the
opposition controlled territories of southern Sudan during
fiscal year 2001. The purpose of these funds should be for
improved local civilian administration and governance and to
reduce conflict and ensure peace and unity in southern Sudan.
Priority should be given to implement the framework agreed
upon at the Yambio Economic Governance Conference. Emphasis
shall be placed on good governance practices such as taxation,
transparency, and accountability.
The Committee notes also that the Wunlit, Wat and Liliir
peace and reconciliation conferences held under the auspices of
the New Sudan Council of Churches (NSCC), have been major
successes in overcoming longstanding distrust between various
ethnic groups in southern Sudan. Much of the humanitarian
suffering in southern Sudan can be traced to south/south
conflict. In order to consolidate these peace and
reconciliation efforts both STAR and BHR programs should be
expanded to these areas focusing on:
Expansion of road rehabilitation to encourage the
restoration of trade and economic activities in all areas of
southern Sudan controlled by the opposition.
Extension of agricultural rehabilitation,
community development councils, and democracy and governance
programs, including the training of local administrators to
these areas.
Provision of health care training and capacity
building, and teacher training and school rehabilitation.
Provision of humanitarian assistance to those
internally displaced by the fighting in the oil field areas of
southern Sudan.
The Committee also encourages AID to support up to
$5,000,000 for assistance to the National Democratic Alliance
(NDA) in Sudan. Such funds shall support:
NDA involvement in the peace process, including
support to the political settlement committee, the transitional
arrangements committee and specific negotiation sessions.
Enhanced NDA communications, including radio
capacity community organizing and publications.
Ongoing expenses of the NDA civilian wing,
including transport costs, rent and offices in the region.

Africa: Ghana

The Committee recognizes that throughout Africa,
agricultural losses due to spoilage and infestation continue to
contribute to food insecurity and loss of economic opportunity
in domestic and export markets. It is estimated that up to half
of Ghana's gross domestic product is lost every year because of
inadequate food processing and preservation systems. The
Committee encourages AID to support a food irradiation pilot
project in Ghana which is consistent with AID's existing free
market economic growth objectives in that country. This project
should serve as a model for other African nations in the areas
of food irradiation and related management, marketing, and
transportation.
The Committee notes also that poor infrastructure hinders
economic growth in Ghana. The Committee encourages AID to
consider providing funds to the U.S. Army Corps of Engineers
for planning, designing, and construction services for
renovation of the Accra-Cape Coast road which serves as a vital
economic corridor linking Ghana and Cote d'Ivoire.

africa: sierra leone

The Committee remains concerned by reports that several
governments in the region, including Liberia, continue to allow
for lethal military equipment to be provided to the rebels in
Sierra Leone. This action has led to the further
destabilization of the region, hindered humanitarian relief
delivery, and has complicated international efforts to end the
conflict in Sierra Leone. The Committee urges the
Administration to make every effort to encourage governments,
especially the Liberian Government, to end their military
support for Sierra Leone rebels. The Committee has once again
included bill language requiring that all assistance to Liberia
be subject to the Committee's special notification
requirements.
The Committee has also included bill language prohibiting
assistance to any government if the Secretary of State
determines there is credible evidence that such government has
provided military support or equipment, directly or through
intermediaries, to the Revolutionary United Front (RUF), or any
other group intent on destabilizing the democratically elected
government of the Republic of Sierra Leone or if there is
credible evidence that such government has aided or abetted,
within the previous six months, in the illicit distribution,
transportation, or sale of diamonds mined in Sierra Leone.
Finally, the Committee supports the use of funds under this
Act to promote human rights generally and to bring to justice
Foday Sankoh, Sam Bokarie, and other individuals responsible
for the gross violations of human rights in Sierra Leone.

africa: higher education

The Committee considers children's basic education the
priority for scarce AID education resources in Africa. However,
the Committee recognizes the importance of higher education to
economic growth and supports the work of AID through its
Advanced Training for Leadership and Skills (ATLAS) program
which brings African students to American colleges and
universities. The Committee is pleased that AID will soon begin
an open and competitive procurement for the continuation of its
ATLAS program in Africa. The Committee is interested also in
the development of indigenous African colleges and universities
and requests AID to consider the merits of supporting the
creation of a new women's university in Africa, designed to
train African women in health sciences, education, agriculture,
and business.

asia: overview

The Committee notes that Asia (beyond the Middle East) is a
region of paramount strategic and economic importance to the
United States. While Asia represents the greatest potential for
growth in U.S. exports and investment opportunities, systemic
economic weaknesses throughout the region continue to threaten
these interests. The Committee is concerned that, while the
economy of the region has largely recovered from the Asian
financial crisis, South and East Asia still contain the largest
concentration of poor people in the world, as well as the
greatest land mass at risk of environmental degradation through
poorly managed growth.
The Committee believes that programs to support sound
economic growth and promote U.S. trade and investment in Asia
should continue to be a high priority for AID and directs the
Agency to make available $60,000,000 for this purpose, as
requested. The Agency is urgent to provide sufficient operating
expenses to effectively manage and oversee economic growth and
other programs in Asia, especially those in countries where AID
does not have a field mission presence.
The Committee notes the ongoing collaboration between AID's
Bureau for Asia and the Near East and Boise State University in
establishing the business school at the National Economic
University in Vietnam. The business school is designed to teach
the free market principles of the U.S. economy to Vietnamese
students.
The Committee commends the Vietnamese dissident movement
for its attempts to start an independent media in Vietnam.
Although both freedom of the press and freedom of expression
are enshrined in the constitution of Vietnam, the underground
newspaper ``Freedom Forum'' met a violent reaction from
authorities. Currently, thousands of dissidents remain under
arrest for their efforts to bring freedom of the press and
democracy to their homeland. These dissidents, including
Professor Doan Viet Hoat, have been an example of great moral
strength and courage for other political prisoners, refusing
offers of freedom in exchange for a renunciation of personal
and political beliefs. The Committee commends their dedication
to the cause of freedom and democracy in Vietnam.

private and voluntary organizations

The Committee has continued prior year language that
requires that private voluntary organizations (PVOs) obtain not
less than 20 percent of their total funding from sources other
than the United States Government. Special consideration should
be extended to those PVOs that obtain private donations for
more than half of their total funding. The Committee has
included new language requiring that prior to waiving the
restrictions on funds to PVOs not obtaining 20 percent of
funding from sources other than the U.S. government, the
Administrator of AID must notify the Committees on
Appropriations. In addition, the Committee has continued
language from the fiscal year 2000 Act stating that support for
private voluntary organizations should be made available at a
level at least equivalent to that provided in fiscal year 1995.
The Committee continues to support private and voluntary
organizations and cooperatives in the delivery of grassroots
assistance. The Committee is aware that AID has begun to rely
more heavily on contracting arrangements for large sector-wide
programs, rather than grant programs that utilize the special
expertise and local knowledge of PVOs and cooperatives.
The Committee continues its strong support for adequate
funding for AID's Office of Private and Voluntary Cooperation
(PVC) in fiscal year 2001 at its current level of $48,000,000
with $6,000,000 for cooperatives. PVC manages competitive
grants for child survival, microenterprise, economic growth,
cooperative development and the Farmer-to-Farmer program. In
particular, PVC supports capacity-building by PVOs and
cooperatives and their local partners that, in turn, leads to
major innovations in effective delivery of assistance and
leverages non-AID resources.
PVC is central to the AID/PVO partnership and houses the
Advisory Committee on Voluntary Foreign Assistance (ACFVA). The
Committee looks to ACVFA to provide advice on critical
development issues and welcomes its perspective on the future
of foreign assistance.

american schools and hospitals abroad (asha)

The Committee directs AID to provide $15,000,000 from the
funds provided in this Act for the American Schools and
Hospitals Abroad (ASHA) program in fiscal year 2001. The
Committee directs that none of these funds be reserved for
programming in any future fiscal year. All funds are to be
allocated and obligated in fiscal year 2001. The Committee
further expects that support will be continued, as new
resources are needed, for traditional recipients in countries
such as Lebanon, Israel, and Egypt. The Committee expects AID
to keep it currently informed regarding institutions which have
received ASHA funding in previous years, but which continue to
have significant unexpended balances. In addition, funds should
be made available for other deserving institutions as part of a
competitive process, including City University, of Bellevue,
Washington, to support its ongoing programs in Slovakia and
Bulgaria and Seton Hill College, of Greensburg, Pennsylvania,
for its proposed collaboration with Yad Vashem's International
School for Holocaust Studies in Israel.

cass scholarship program

The Committee continues to support the work of the
Cooperative Association of States for Scholarships (CASS) and
supports funding for CASS at the level contained in its
cooperative agreement with AID.

collaborative research support programs

The Committee supports the continuation of the
collaborative research support programs (CRSPs) and expects AID
to increase funding for the CRSPs in fiscal year 2001. The
Committee is concerned that for fiscal year 2000, AID intends
to provide only $20,000,000 for CRSPs, which is significantly
below the Committee's recommended funding level. The Committee
believes that CRSPs are clearly one of AID's best investments,
funding for which should be increased rather than reduced. The
Committee notes that agricultural research and development has
led to greater economic development, increased income, and a
more available food supply for the world's poor. The CRSPs have
a significant domestic benefit as well: every dollar invested
in agricultural research by the United States is estimated to
be worth four dollars of expanded markets for U.S. goods and
services overseas.

international fertilizer development center

The committee strongly supports the fertilizer-related
research and development being conducted by the International
Fertilizer Development Center (IFDC) and directs the
Administrator of AID to make at least $2,200,000 available for
the core grant to IFDC.

housing, shelter, and urban activities

The Committee commends the progress made by the Eastern
European Real Property Program in the Europe and Eurasia Bureau
since 1992. As the program expands into other regions as the
International Real Property Program (IRRP), the Committee
recommends that other AID regional bureaus and missions
seriously consider cooperation with the IRRP as housing,
shelter, and urban activities are included in country
strategies.

dairy development

The Committee continues to support dairy development and
recommends AID funding of $8,000,000 in fiscal year 2001, the
same level as fiscal year 2000. The Committee reiterates that
this program is designed to help the U.S. dairy industry become
more competitive as domestic and international subsidies
decline. The program has twin objectives. First, it is to
assist small dairy producers, cooperatives and small and medium
enterprise dairy plants in developing and market transition
countries to meet the nutritional needs of their consumer by
increasing the availability of higher-quality and value added
dairy products in their local markets. Second, the program
directly engages the U.S. dairy industry by helping it access
new markets, promote American technology and expose dairy
industry leaders to the international marketplace through
participation in technical assistance and training overseas and
in the United States.
The Committee notes with favor that many U.S. dairy
companies have participated in the program. One significant
result has been the creation of joint ventures on the sale of
feeds, seeds, dairy equipment, genetics, packaging technology
and other dairy-related products. The program has helped create
strong local partners for the benefit of the U.S. industry
while increasing incomes for small dairy farmers, spurring
cooperative formation and enhancing the status of women dairy
herd caretakers. The Committee directs that the competitive
grant process under the program continue to benefit from U.S.
dairy industry involvement as well as meeting local development
needs.

community-owned telecommunications

The Committee believes that ensuring that developing
countries, especially rural areas of these countries, have
access to modern methods of communications is important to
economic growth. The Committee notes that community-owned
telecommunications systems, as have been successfully built in
rural America, are effective in providing this access. The
Committee therefore, recommends that AID provide funding for
community-owned telecommunications projects, especially where
viable in South and Central America through programs like the
Power Line Communication Rural Electric initiative, and that it
rely upon the direct experience of U.S. telephone cooperatives.

agency response to requests for information

The Agency for International Development and the Department
of State are directed to respond within 15 days to requests by
the Committee for additional information regarding programs,
projects, and activities in the budget justification,
reprogramming requests, or the report required by section
568(b). Such information may include the identification of and
funding provided to domestic and foreign cooperators, grantees,
and contractors under programs, projects, and activities that
are managed by regional and other central bureaus, missions,
and embassies. The Committee expects AID to maintain a publicly
accessible electronic database that reflects current
information and financial data regarding its activities.

international executive service corps

The Committee supports the work of the International
Executive Service Corps (IESC), which since 1964 has undertaken
more than 22,000 projects in 120 nations by utilizing
volunteers to assist in business development, economic growth,
and technology transfer. The Committee is concerned that AID
has underutilized the IESC as a development partner in recent
years and directs AID to renew its commitment to the IESC to
ensure expansion of its projects in sub-Saharan Africa and in
Latin America and the Caribbean. Further, the Committee urges
AID to reemphisize its commitment to economic development
through its support for small and medium-sized enterprise
development, business support organizations and associations
with priority for direct firm-level assistance.

U.S./Israel Cooperative Programs

The Committee continues to support funding for the U.S./
Israel Cooperative Development Program (CDP). However, while
the Committee agrees with the proposal of the Agency for
International Development to phase-out funding for the core
grant for this program over four years, further consultation
with the Committee has resulted in a decision to begin the
reduction in the coming fiscal year rather than in fiscal year
2000. Even with the phase-out of the core grant, the Committee
expects that institutions participating in this program will
continue to be eligible for competitive grants from AID.

torture treatment centers

Last year, the Committee recommended $7,500,000 for AID to
support foreign treatment centers for torture victims and
requested a report on implementation of its torture treatment
program. The Committee was pleased to learn from this report
that AID would award a $1,500,000 grant to support capacity
building programs for foreign treatment centers. However, apart
from this initiative, AID's report does not indicate any
further support for treatment centers. Furthermore, the report
details AID's assistance to victims of war-related atrocities
and displacement from civil conflicts, but does not indicate
that there has been much support for those Congress intended to
help in passing the Torture Victims Relief Act--victims of
torture, as traditionally understood.
Supporting treatment centers as permanent national
institutions is the best way of providing treatment services to
torture victims and advocating for the elimination of torture
globally. Accordingly, the Committee recommends $10,000,000 for
AID to support foreign treatment centers for victims of torture
as authorized by the Torture Victims Relief Act and the Torture
Victims Relief Reauthorization Act of 1999. In keeping with the
intent of this legislation, the Committee recommends these
funds be used primarily for direct treatment services to
victims of torture, as traditionally understood. The Committee
directs AID to report on implementation of this recommendation
not later than February 1, 2001.

international disaster assistance

Fiscal year 2000 level................................ $202,880,000
Fiscal year 2001 request (under new account structure) 165,000,000
Committee recommendation.............................. 165,000,000

The Committee recommends $165,000,000 for the International
Disaster Assistance account, $37,880,000 below the request.
However, the Committee notes that it has recommended
establishment of a separate account for AID's Office of
Transition Initiatives (OTI). Therefore, the Committee's
recommendation for the International Disaster Assistance
account provides the full requested amount for AID's Office of
Foreign Disaster Assistance (OFDA) which will ensure that AID
has adequate resources to meet all existing and projected
disaster needs in fiscal year 2001. The Committee notes that
section 492(b) of the Foreign Assistance Act provides the
President with the authority to obligate up to $50,000,000 from
other development assistance accounts including the Economic
Support Fund in order to provide disaster assistance, if
necessary.
The Committee recognizes that improved disaster prevention,
mitigation, and preparedness techniques are central to reducing
the need for disaster assistance in future years. The Committee
directs AID to work with Florida International University's
International Hurricane Center and its Global Emergency
Management Institute to collaborate on a program to train and
educate foreign government officials in disaster preparedness,
prevention and mitigation activities. Further, the Committee
believes AID's response to international disasters can be
improved by the establishment of a centralized distribution
point for shipment of a wide variety of commodities urgently
needed in crisis situations, such as food, shelter equipment,
and medicine. To achieve efficiencies in distribution, the
Committee urges AID to work with interested parties to develop
a center for coordination of humanitarian response efforts.

school feeding programs for children

The Committee supports school feeding programs carried out
by AID's Bureau for Humanitarian Response, through private
voluntary organizations and the World Food Program. These
programs help improve children's basic diet and nutrition,
increase enrollment, especially among girls, and support
community-led health and nutrition education programs. The
Committee notes that in fiscal year 2000, AID-supported school
feeding programs assisted more than 1.5 million children in 21
countries in south Asia, Latin America and sub-Saharan Africa.
The value of this support totaled $56,500,000.
For fiscal year 2001, the Committee supports continuation
of these programs and directs AID to consider initiating a
school feeding program in Sierra Leone to boost nutrition and
school attendance in this war-ravaged country.

OFDA Coordination with Department of State Refugee Programs

The Committee notes that, in recent years, the Office of
Foreign Disaster Assistance (OFDA) has become increasingly
involved in responding to war and other man-made disasters. As
a result, OFDA's beneficiaries in many cases overlap with
groups traditionally assisted by the Department of State's
Bureau of Population, Refugees, and Migration (PRM). The
Committee commends the coordination between OFDA and PRM at the
peak of the Kosovo crisis, in particular their practice of
discussing project proposals with each other before making
funding decisions. The Committee considers such coordination
essential to ensure optimal use of taxpayer funds. The
Committee directs OFDA and PRM to jointly develop standard
operating procedures for cooperation whenever both agencies are
responding to the same crisis or are present in the same
geographic area, and methods for ensuring that these procedures
become institutionalized. The Committee requests a report on
these procedures not later than March 1, 2001.

Transition Initiatives

Fiscal year 2000 level................................ ................
Fiscal year 2001 request (under new account structure) $55,000,000
Committee recommendation.............................. $40,000,000

In its fiscal year 2000 report, the Committee noted that
AID's Office of Transition Initiatives (OTI) activities were
consuming an ever-increasing part of the International Disaster
Assistance account. AID allocated to the Office of Transition
Initiatives $50,000,000 in fiscal years 1999 and 2000 from
within the International Disaster Assistance account. The
Committee recognizes that AID's OTI activities can have
considerable impact, with small amounts of money, in key
transition countries. Therefore, for fiscal year 2001 the
Committee has created an account for AID's transition
activities. This will help ensure necessary transition
activities as well as true disaster aid are adequately funded.
The Committee recommends $40,000,000 for this account, compared
to the budget request of $55,000,000. The Committee does not
preclude AID's Office of Transition Activities from using
resources transferred from other development accounts in this
Act. Also, the Committee requests that AID report on a semi-
annual basis the expenditure and specific use of funds by OTI.
The Committee supports AID's reconstruction efforts that
include community-based reconstruction activities after the
immediate disaster response and relief activities. The
Committee supports the inclusion of these community-based
development practices, which include credit unions and
cooperatives, that not only provide immediate relief, but also
increase long-term access to safe, affordable housing,
community services and finance. Further, the Committee is
pleased that AID is utilizing U.S. cooperatives as part of
hurricane recovery efforts in Central America and political
turmoil in East Timor and the Balkan region including
Montenegro and Kosovo.

Micro and Small Enterprise Development Program

subsidy appropriation

Fiscal year 2000 level................................ $1,500,000
Fiscal year 2001 request.............................. ................
Committee recommendation.............................. 1,500,000

estimated level of direct and guaranteed loans

Fiscal year 2000 level................................ $30,000,000
Fiscal year 2001 request.............................. ................
Committee recommendation.............................. 30,000,000

administrative expenses

Fiscal year 2000 level................................ 500,000
Fiscal year 2001 request.............................. ................
Committee recommendation.............................. 500,000

The Committee recommends $1,500,000 in a subsidy
appropriation and $500,000 for administrative expenses for the
Micro and Small Enterprise Development program, the same as the
fiscal year 2000 enacted level. The budget request proposed
merging this account into a consolidated development credit
program.

Development Credit Program Account

(including transfer of funds)

program account

Fiscal year 2000 level................................ (3,000,000)
Fiscal year 2001 request.............................. (15,000,000)
Committee recommendation.............................. 1,500,000
(by transfer)..................................... (2,000,000)

administrative expenses

Fiscal year 2000 level................................ ................
Fiscal year 2001 request.............................. $8,000,000
Committee recommendation.............................. 6,495,000

For fiscal year 2001, the budget request proposes merging
AID's three existing credit programs into one consolidated
Development Credit account. This single program would include a
consolidated credit administrative budget. The Committee
supports consolidation of the Urban and Environmental (UE)
credit program as well as administrative expenses associated
with management of the existing Development Credit Authority
and recommends $6,495,000 for operating expenses, $1,505,000
below the requested level. The Committee does not support
consolidation of the Micro and Small Enterprise Development
(MSED) account.
The Committee recommends a direct appropriation of
$1,500,000 and has provided legislative authority to support
continued urban credit programs. The Committee supports the use
of up to $2,000,000, transferred from the ``Development
Assistance'' account, to support development credit activities
under this heading. The Committee is aware that AID has made a
considerable effort, with the assistance of Congress and the
Office of Management and Budget, to ensure that this new
consolidated credit program has sound management. The Committee
supports the use of development credit for an integrated
municipal infrastructure and housing program in Costa Rica. The
Committee notes that AID has undertaken similar activities in
South Africa.

Payment to the Foreign Service Retirement and Disability Fund

Fiscal year 2000 level................................ $43,837,000
Fiscal year 2001 request.............................. 44,489,000
Committee recommendation.............................. 44,489,000

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

Operating Expenses of the Agency for International Development

Fiscal year 2000 level................................ $520,000,000
Fiscal year 2001 request.............................. 520,000,000
Committee recommendation.............................. 509,000,000

The Committee has recommended funding for Agency for
International Development operating expenses at a level of
$509,000,000 which is $11,000,000 below the Administration's
request. The Committee has once again included a provision
requiring AID to notify the Committee in advance of opening any
new mission overseas and of any capital construction of
missions or purchase or long-term lease of offices.

Use of Personal Service Contractors

The Committee notes the continued use by AID of personal
service contractors (PSCs). The Committee has traditionally
supported this method of employing qualified individuals for
short and medium term program implementation. However, the
Committee notes the trend toward employing PSCs over a period
of many years at the Agency, who carry out functions similar to
career personnel of the Civil Service and the Foreign Service,
but who lack comparable health, retirement, and other benefits.
The Committee requests AID report in narrative form not later
than March 1, 2001, on the total number of PSCs employed by the
Agency, the average length of employment, the typical benefits
provided to PSCs (compared to those provided to career Civil
and Foreign Service employees), and the justification for the
disparity in benefits.

fairness in contracting

The Committee is concerned about AID's existing procedures
regarding minimum awards under multiple award contracts.
Current management practices on certain existing multiple award
contracts do not allow small businesses to fairly compete for
work.
To reform this process AID management must address two key
issues. First, organizations bidding for these contracts must
be assured of receiving awards during the life of the contract
valued at substantially more than the cost of preparing and
submitting the original bid. While larger organizations and
traditional AID contractors may be better able to absorb the
upfront costs associated with the bidding process, small
businesses--especially first-time bidders--find it difficult.
Second, after being selected to participate in a multiple
award contract, small businesses must be given the opportunity
to compete for individual task orders. While discretion must be
allowed for AID Cognizant Technical Officers (CTOs) to make
award decisions, AID management has overall responsibility to
ensure that each organization participating in a multiple award
contract has received sufficient task orders so that it can be
evaluated on its performance and considered for future work.
Should AID not quickly initiate policies and training for
managers of the innovative and time-saving multiple award
contracts so as to better protect the opportunities for small,
new, and disadvantaged contractors to fairly compete for task
orders, the Committee is prepared to impose a legislative
remedy or prohibit multiple award contracts. Not later than
September 5, 2000, AID is directed to report in writing to the
Committee on its efforts to modify its existing procedures
regarding multiple award contracts.
The Committee is aware that AID has established a task
force to examine the reported decrease in participation by
small business (including disadvantaged businesses and women-
owned businesses) in grant, cooperative agreement, and contract
awards. The Committee urges the Agency to expand the task force
to include mid-level Agency staff who have current experience
in the award or technical management of acquisition and
assistance mechanisms. Not later than 6 months after submission
of the September report on fairness in multiple award contracts
and task orders, the Committee directs the Administrator to
submit a more comprehensive report to the Committee. The second
report will summarize the results of the task force's efforts,
including its analysis of the problem and the administrative
options that can be taken to increase the participation of
small business in AID acquisition and assistance. The report
may include comments by the Office of Management and Budget and
proposed legislation to promote fairness in contracting.

Working Capital Fund

The Committee has provided limited authority for AID to
establish a working capital fund, without fiscal year
limitation, for expenses of the International Cooperative
Administrative Support Services (ICASS) and for rebates from
the use of U.S. Government credit cards. The Committee views
this fund as a pilot project, the long-term viability of which
will be evaluated during fiscal year 2001. The Committee
further expects this activity will be undertaken primarily by
those AID missions in which AID has already determined that it
is best suited to serve as the ICASS provider. The Committee
understands that the creation of this fund will allow AID to
receive an estimated $250,000 in credit card rebates in fiscal
year 2001, which are to be credited to the Agency's ``Operating
Expenses'' account. AID's Chief Financial Officer is directed
to consult with the Committee on a quarterly basis on the
development and implementation of this fund in fiscal year
2001.

Voluntary Separation Incentives

The Committee has included bill language providing for the
payment of voluntary separation incentives to AID employees for
the purpose of eliminating positions and functions at AID. This
provision amends the fiscal year 2000 authority. The Agency is
directed to consult with the Committee prior to announcing to
AID employees the positions eligible for the separation
incentives. The Committee expects this authority to be utilized
to reduce employment levels in Washington, D.C., not at AID's
overseas missions.

Committee oversight challenges

The Committee remains concerned about continued and
significant weaknesses in AID's ability to provide reliable
information to Congress regarding the exact use of funds under
Agency control. Many of these deficiencies are not new as the
Committee has highlighted these in past years. While progress
has been made in certain areas, widespread deficiencies
continue to exist in the majority of AID's financial accounting
and management systems.
The Committee will continue to work with senior AID
officials to improve management and financial systems to ensure
they meet the needs of both Congress and the Agency. The
Committee expects AID management to implement the
recommendations of the Inspector General in this regard and to
be regularly consulted about Agency efforts to meet these
requirements.
The Committee directs AID to continue to report on a
quarterly basis on the status of its computer systems,
including the cumulative costs associated with design and
implementation of its computer systems. Any costs for computer
systems above those originally projected for fiscal year 2001
shall be subject to prior review by the Committees on
Appropriations. To address its computer systems deficiencies,
the Committee requests that AID report on the viability of
acquiring and implementing an internet-based project management
solution that is adaptable, available for immediate use and
supports a substantial number of software programs. In
addition, the Committee directs that the Agency's fiscal year
2002 budget justification will clearly identify the amounts
requested for the AID computer operations.

aid budget submission

The Committee notes that the AID budget justification still
falls short in providing the Congress with the minimum
information it requires to carry out its legislative and
oversight responsibilities, and has caused an undue reporting
burden on the Agency. It is essential that the Committee have
at its disposal a concise budget justification document that
presents an overall presentation of the Agency's programs and
activities.
In its initial fiscal year 2001 budget justification, AID
experimented with several new approaches to displaying the
President's request for AID-managed appropriations. The
Committee welcomed new financial tables, additional mission
staffing information, and more ample justification of the AID
Operating Expenses and International Disaster assistance
requests. The Committee rejects the experiment in aggregating
the vast majority of AID-managed programs, projects, and
activities by Agency ``objectives''. In practice, AID
objectives often group together projects and activities that
are conceptually or operationally distinct. Well known
activities such as the Leland Initiative and the ATLAS program,
to use two examples in Africa, can not be located or are
concealed under impenetrable bureaucratic jargon. In many
instances, an objective is proposed for funding by two or more
appropriations accounts, but the accompanying budget narratives
fail to distinguish among the component activities of the
objective or link component activities with multiple
appropriations accounts.
Beyond the unacceptable practice of aggregating most
programs, projects, and activities under Agency objectives, the
budget justification fails to include overview budget
narratives and tables on areas such as infectious diseases,
microcredit, biodiversity, population, economic growth, energy,
democracy, or agriculture. The Committee strongly recommends
that the AID budget justification be coordinated with a new
financial management system to produce annual budget
justifications that fully inform the Committee with regard to
projects, initiatives, and other traditional areas of
congressional and executive branch interest.
The Committee again includes a general provision, section
576, that would require the Agency to submit an annual budget
that contains detailed data about past, current, and requested
financial and personnel resources for each Bureau, Central
Office, and Field Mission. The Committee expects a draft budget
format to be submitted for approval by the Committees on
Appropriations not later than October 31, 2000.

AID physical security

The Committee remains committed to assisting AID in
improving its physical security needs overseas and in
Washington. The Committee directs the Administrator of AID to
prepare a written report detailing the agency's long-term local
and overseas physical security requirements and the costs
associated with these security needs, including the number of
engineers and other technically qualified AID employees
assigned to the security mission. The report also shall include
information regarding the Agency's activities during the
current fiscal year to work with other federal agencies,
including the Department of State and the Office of Management
and Budget, to address physical security issues.

Operating Expenses of the Agency for International Development, Office
of the Inspector General

Fiscal year 2000 level................................ $25,000,000
Fiscal year 2001 request.............................. 27,000,000
Committee recommendation.............................. 27,000,000

The Committee has recommended $27,000,000 for the Office of
the Inspector General of AID for fiscal year 2001, the same as
the budget request and $2,000,000 above the fiscal year 2000
level. The Committee again requests that the Inspector General
consult with the Committee no less than four times per year on
its activities with regard to the Government Performance and
Results Act.

Development Fund for Africa

Fiscal year 2000 level................................ ................
Fiscal year 2001 request.............................. $532,928,000
Committee recommendation.............................. ................

The administration requested $532,928,000 for the
Development Fund for Africa. The Committee provides no funds
under this account heading. However, as stated earlier in this
report, the Committee recognizes that development needs in sub-
Saharan Africa are great and expects AID to continue to provide
a significant percentage of all development funds, including
``Development Assistance'', ``Child Survival and Disease
Programs Fund'', and humanitarian assistance resources, to the
region.

Other Bilateral Economic Assistance

Economic Support Fund

Fiscal year 2000 level................................ $2,345,500,000
Emergency supplemental funding.................... 450,000,000
Fiscal year 2001 request.............................. 2,313,000,000
Committee recommendation.............................. 2,208,900,000

The Committee recommends a total of $2,208,900,000 for the
Economic Support Fund, an amount that is $104,100,000 below the
request and $586,600,000 below the amount enacted for 2000. If
emergency supplemental funding is excluded from the
calculation, the recommended level is $136,600,000 below the
2000 level.
The Committee recommendation assumes a reduction of
$160,000,000 in economic support for the Camp David countries.
Funding for non-Camp David countries is recommended at a level
of $673,900,000. Support for non-Camp David countries and
activities in this account has risen from $344,600,000 in
fiscal year 1996 to $673,900,000 in fiscal year 2001, an
increase of $329,300,000 or approximately 96 percent.

ireland

The Committee strongly supports continued funding to
implement the Irish Peace Process Cultural and Training Program
Act of 1998 and has provided the budget request of $5,000,000
for this purpose. This Congressional initiative brings youths
from Northern Ireland and designated disadvantaged areas to the
United States for job training and related activities.

israel

The Committee is continuing the initiative begun two years
ago for a phased reduction in economic assistance for Israel
that will result in the eventual elimination of ``Economic
Support Fund'' assistance. This proposal was originally made by
the Government of Israel in response to new economic realities
in the Middle East.
The Committee is also convinced that the emerging security
threats in the Middle East are significant and warrant
increasing military assistance to Israel by $60,000,000 in
fiscal year 2001. However, with respect to this recommended
increase in military assistance, the Committee must be very
clear that it cannot commit future Congresses to the future
appropriation of funds. Therefore, future increases in military
assistance will require the annual review of the Congress and
will necessarily be based upon an assessment of the security
situation at the time.
The Committee therefore recommends that not to exceed
$840,000,000 in economic support shall be provided for Israel,
which is $120,000,000 less than the fiscal year 2000 level and
the same as the President's budget request. The Committee also
requires in bill language that these funds be provided to
Israel as a cash grant and that funds be disbursed within 30
days of enactment or by October 31, 2000, whichever is later.
The Committee has retained an overall limit on Middle East
spending (section 568) at a level of $5,221,150,000. The
reduction of $100,000,000 from the fiscal year 2000 ceiling
represents the net result of a decrease of $160,000,000 in
economic support for the Camp David countries and an increase
of $60,000,000 in military assistance for Israel. The Committee
intends to continue the phased reduction in the Middle East cap
next year, a reduction that will correspond to the declining
assistance levels for Israel and Egypt. The Committee believes
this will provide the Administration with increased flexibility
in the allocation of funds in the foreign operations budget for
priority activities in other areas of the world.

egypt

As part of the Committee's ongoing review of Middle East
aid levels, and as a result of budget constraints affecting the
international affairs budget, the Committee has engaged in
extensive discussions with the Government of Egypt and the
Administration regarding appropriate future aid levels for
Egypt. As a key friend and ally in the region, Egypt's critical
role in the Middle East and essential contribution to the peace
process cannot be overstated. It is the Committee's view
therefore that changes in aid to Egypt must be implemented in
close consultation with the Government of Egypt and in a manner
which does not inadvertently undermine the guiding principles
of the Camp David Accords.
The Committee therefore recommends that not to exceed
$695,000,000 in economic support be provided for Egypt on a
grant basis, which is $40,000,000 less than the fiscal year
2000 level and the same as the President's budget request. A
cash transfer may be provided with the understanding that Egypt
will continue to implement significant economic reforms. The
Committee also strongly recommends that not less than
$200,000,000 of the funds allocated for Egypt be available for
Commodity Import Program assistance.
The Committee is troubled by the maintenance of
discriminatory taxes on certain United States branded consumer
products, particularly soft drinks. Exorbitant taxes on
American goods discourage investment, risk closure of United
States owned facilities, and retard employment and revenue
growth. The Administrator of AID is directed to report to the
Committee no later than November 1, 2000 on steps taken by the
agency with the Government of Egypt to undertake economic
market reform aimed at correcting this discriminatory tax
situation.

camp david accords

The Committee emphasizes once again that the recommended
levels of assistance for Israel and Egypt are based in great
measure upon their continued participation in the Camp David
Accords and the Egyptian-Israeli peace process.

non-military exports

The Committee strongly urges the President to ensure, in
providing cash transfer assistance to Egypt and Israel, that
the level of such assistance does not cause an adverse impact
on the total level of non-military exports from the United
States to each such country.

economic boycott of israel

The Committee has once again included language in the bill
addressing the Arab League boycott of Israel under section 539
of this Act. This language has been modified to urge that Arab
League members normalize relations with Israel.

jordan

The Committee expresses its continued strong support for
and appreciation of Jordan's constructive and critical role in
the peace process and encourages the Administration, in close
consultation and cooperation with the Congress, to continue its
efforts to assist Jordan in both the economic and security
areas. The Committee therefore recommends $150,000,000 in
economic assistance for Jordan, the same as the President's
budget request.
The Committee also encourages Jordan to continue its
ongoing economic reform program, which the Committee strongly
supports.

middle east desertification

The Committee expresses strong support for the initiation
of a Middle East and Mediterranean desert development program
to significantly increase efforts to expand regional
cooperation in combating growing desertification in the Middle
East and southern Mediterranean region. The Committee believes
that such a program would be environmentally viable and
mutually beneficial to nations in this region. Therefore, the
Committee directs that $3,200,000 be made available for this
activity from the Economic Support Fund, development assistance
or any other appropriate funds made available by this Act.

conflict resolution

The Committee recognizes the importance of youth training
in conflict resolution as a tool for creating a climate of
peace in regions of conflict. Organizations such as Interns for
Peace can play an important role in this regard, and the
Committee urges support for its programs. The Committee also
commends Seeds of Peace for its commitment to helping future
leaders of the Middle East and other regions (such as Cyprus,
the Balkans, and South Asia) to overcome prejudice, fear, and
other obstacles to peace, and urges AID and the Department of
State to provide $1,000,000 in fiscal year 2001 to support the
important work of this organization.

west bank and gaza

The Committee supports assistance to the West Bank and
Gaza. The Committee continues to believe that support by the
United States for the economic and social development of
Palestinians is an important contribution to the peace process.
However, the Committee is aware this program received an
emergency supplemental appropriation of $400,000,000 in fiscal
year 2000. In addition, the Department of State allocated
$85,000,000 for this program from nonemergency economic support
in fiscal year 2000, despite direction from Congress that the
program be maintained at an ongoing level of $75,000,000.
Therefore the Committee believes that funding for the West Bank
and Gaza in fiscal year 2001 should not exceed the amount
allocated for fiscal year 1999. The Committee notes that
funding for this program is included in the ceiling on Middle
East assistance contained in section 568, and that any decision
by the Administration to allocate additional resources for the
West Bank and Gaza will necessitate decreases in funding in
other programs of importance in the Middle East.
The Committee remains concerned that incitement to violence
in the West Bank and Gaza remains one of the primary obstacles
to achieving a true peace in the Middle East. The Trilateral
Anti-Incitement Committee, established by the Wye River
Memorandum, should be an important mechanism for the parties to
work together to address the problem of incitement. The
Committee directs the Secretary of State to provide, no later
than 90 days after the enactment of this Act, a report on the
activity of the Trilateral Anti-Incitement Committee, and an
analysis of its effectiveness as a tool for monitoring and
preventing incitement within the context of the Israeli-
Palestinian peace process.

Palestinian Authority and UNRWA

The Committee is concerned that the United Nations Relief
and Works Agency for Palestinian Refugees (UNRWA) has faced
growing budget deficits and repeated cash flow problems in
recent years. These difficulties are due in part to a growing
refugee population, rising inflation costs, and exchange rate
fluctuations. However, of particular concern to the Committee
is the fact that the Palestinian Authority (PA) is responsible
for almost half of UNRWA's annual deficit. As of April 30, the
PA owed UNRWA over $26,400,000 for reimbursement of value added
taxes (VAT), port charges, and interest. Despite its publicly
stated willingness to reimburse UNRWA, the PA has paid only a
token sum.
The PA's failure to pay UNRWA hurts the Palestinian refugee
community, since UNRWA is the primary provider of education,
health, and social relief services to Palestinian refugees. The
PA's debt also places additional financial demands on UNRWA's
donors. The United States has contributed $77,000,000 to
$80,000,000 annually to UNRWA in recent years, roughly twenty
to twenty-five percent of UNRWA's general program budget. The
Committee urges the Administration to engage with the PA to
ensure that it makes its payments in a timely fashion.

lebanon funding

The Committee believes support for the people of Lebanon
continues to be in the United States national interest. The
Committee supports at least level funding for Lebanon from both
the development assistance and Economic Support Fund accounts
for fiscal year 2001. In that regard, the Committee strongly
opposes the reduction of $3,000,000 for Lebanon that is
contained in the President's budget request, and has retained
bill language from fiscal year 2000 that directs that not less
than $18,000,000 should be made available for Lebanon.
The Committee recommendation includes an increase of
$3,000,000 above the fiscal year 2000 level in order to allow
the Agency for International Development to expand its
development activities into the southern portion of Lebanon.
The Committee is aware of the key role the Lebanese
American University, American University of Beirut, and
International College play training leaders in the region and
directs that not less than $4,000,000 be provided for
scholarships and direct support of the American educational
institutions in Lebanon.

iraq opposition

The Committee supports the President's request of
$10,000,000 for support to Iraq opposition groups, and has
included bill language in section 575 that authorizes up to
$8,000,000 for such assistance pursuant to the provisions of
the Iraq Liberation Act (Public Law 105-338), and up to
$2,000,000 for groups and activities seeking the prosecution of
Saddam Hussein and other Iraqi government officials for war
crimes.

yemen

The Committee strongly supports the budget request of
$4,000,000 for assistance for Yemen. Yemen is one of the
world's least developed countries and suffers from high
illiteracy rates, high infant mortality, low worker skills, and
an undiversified labor force structure. Despite these problems,
Yemen has evolved into a multi-party democracy and has also
embarked on an ambitious IMF-sanctioned economic reform
program. These funds will assist in this transition. The
Committee supports using a portion of these funds to ensure
that the election process is modernized, including updating the
lists of eligible voters.

Mongolia

The Committee includes the $12,000,000 requested for
Mongolia under this heading and is recommending bill language
to endorse this allocation. The Committee expects that the
Mongolia program will include a Free Market Scholarship
Program. The Office of Foreign Disaster Assistance is commended
for its response to the recent natural disasters in Mongolia,
and is urged to continue its support. In addition, the
Committee intends that funds be made available to continue
support at the current level for the Hovsgol National Park
Improvement Program.

indonesia

The Committee is concerned about the slow pace of
Indonesia's transition to a more genuine democracy and free
market economy. Indonesia's transition needs to be accelerated
as much as possible, consistent with political will, in order
to keep pace with the high expectations for change among a
restive populace.
A significant number of governmental institutions need to
be radically altered in order to be more democratic, effective
and accountable, requiring changed institutional structures and
better trained personnel with a different work ethic. This is
particularly true in the banking, power, and forestry sectors.
Renewed economic growth depends on rapid progress in reform.
Decentralization has vastly increased the complexity of
achieving a successful democratic and economic transition in
Indonesia. The decision to devolve certain key authorities
below province level means that, in order to make the
transition successful, AID cannot work solely with national
level governmental institutions. Assistance to local
governmental bodies and parliaments also will be essential.
The Committee urges that support for strengthening local
and national governmental institutions not be undertaken at the
expense of continued support for nongovernmental organizations;
NGOs continue to have a role in monitoring the government's
transition. NGOs are also needed to provide technical support
and advice to governmental institutions that are being changed,
especially at the local level.
The Committee is supportive of the higher budget requests
for Indonesia in the Economic Support Fund, and in other AID
accounts as available, for the following reason:
new governmental institutional strengthening
activities should not unduly disrupt the traditional
NGO-based programs supported over several years;
Indonesia's move to decentralize requires
simultaneous work at local and national levels; and
funding flexibility is needed to respond to
Indonesia's still volatile environment, particularly in
regions such as Aceh and East Indonesia, where
intensive, broad based assistance may be needed to help
resolve conflicts and demonstrate the benefits of
peace.

east timor

The Committee recognizes that the violence following East
Timor's August, 1999, independent referendum destroyed a large
part of its infrastructure and housing and forced large numbers
of East Timorese to take refugee in West Timor. As East Timor,
under the auspices of the United Nations Transitional
Administration, rehabilitates its physical infrastructure,
creates new governmental and legal structures, and prepares for
full independence, continued United States support is critical.
The Committee concludes that the $10,000,000 requested by the
Administration for East Timor is insufficient, and therefore
recommends that $25,000,000 from the Economic Support Fund and
Transition Initiatives accounts be made available to support
income producing projects and other reconstruction activities
in East Timor.
The Committee applauds the efforts of the Office of
Transition Initiatives (OTI) which has been the primary manager
of resources for East Timor. The Committee strongly recommends
that as OTI phases out its activities in East Timor, AID devote
sufficient operating expenses to establish a regular AID
presence in East Timor that is sufficient to develop programs
to meet East Timor's longer term development needs.

china

The Committee is recommending modification of a general
provision (section 526) which authorizes the use of funds from
the Economic Support Fund to provide general support and grants
for nongovernmental organizations located outside China that
have as their primary purpose fostering democracy in that
country. From fiscal year 2000 funds already appropriated for
this purpose, the Committee directs the State Department to
make available $1,000,000 for the democracy project being
administered by the Jamestown Foundation. In addition,
$1,000,000 shall be made available for other projects related
to China, including support for nongovernmental organizations
through the National Endowment for Democracy. The Committee
would also support rule of law programs for law students.
The President's budget request included $28,000,000 to
compensate China for the damage done to the Chinese Embassy in
Belgrade during the Kosovo air campaign. The Committee is not
recommending funds for this purpose. In addition, the
President's request for bill language that would authorize such
funds is not included in the Committee recommendation. Without
such authorization, the Committee does not believe the
provisions of chapter 4 of part II of the Foreign Assistance
Act allow for such a transfer of funds to the Government of
China.

tibet

The Committee recommends that $250,000 be made available
through a nongovernmental organization, such as the National
Endowment for Democracy, for the purpose of providing training
and education of Tibetans in democracy activities, and
monitoring the human rights situation in Tibet. In addition,
language has been included in section 526 to allow for a
continuation in funding for activities which preserve cultural
traditions and promote sustainable development and
environmental conservation in Tibetan communities. The
Committee is aware of the valuable assistance the Bridge Fund
has provide to promote Tibetan-owned and operated businesses
and educational, cultural, and natural resource conservation
projects in Tibet, and urges that $1,000,000 be provided for
Fund programs.

burma

The Committee continues to be concerned about the severe
repression faced by democratic activists in Burma, and notes
with alarm the intensification of the military regime's
campaign of harassment and detention of persons engaged in
peaceful political activities. In particular, the Committee is
alarmed by reports that citizens of Burma are arrested for
listening to radio broadcasts by Radio Free Asia and the Voice
of America or for possession of opposition newspapers. The
Committee also expresses its concern about the precarious
situation of the Burmese activists and refugees currently
living in Thailand. The Committee commends the Thai government
for its efforts to care for and protect the refugees. However,
the Committee notes with alarm the recent upsurge in the Thai
government's harassment of Burmese political activists based in
Thailand and calls upon the State Department to work with the
activists and the appropriate persons in the Thai government to
provide a greater measure of security for the pro-democracy
activists.

cambodia

The Committee has continued bill language (section 570)
from the fiscal year 2000 appropriations act that prohibits
funding for the central Government of Cambodia.
The Committee is very concerned about allegations of
corruption at the Cambodian Mine Action Center (CMAC). Reports
have circulated that senior government officials, as well as
former Khmer Rouge officials responsible for the murders of
foreign tourists, were the recipients of funds illegally
transferred from CMAC accounts. The Committee directs that
prior to the obligation of funds for CMAC from this account or
from ``Nonproliferation, Anti-terrorism, Demining, and Related
Programs'', the Administration should notify the appropriate
committees of the Congress regarding the status of CMAC
finances. At a minimum an independent audit should be conducted
of CMAC accounts, those responsible for waste, fraud and abuse
should be dismissed, and appropriate oversight mechanisms
should be established. Absent significant changes at CMAC, the
Committee believes that any future demining funds for Cambodia
should be provided through independent nongovernmental
organizations.

cyprus

The Committee supports the budget request of $15,000,000
for educational and other bicommunal projects in Cyprus. These
funds provide a basis for mutual cooperation and preparation
for the two communities of Cyprus to live together harmoniously
by increasing inter-communal contacts.

latin america and the caribbean

With the exception of the Administration's request for
Haiti, the Committee expects the Administration to fund
programs for Latin America at least at the fiscal year 2000
level. (Haiti is addressed separately below.) It remains the
Committee's strong belief that given the importance of the
region and the long history of United States support, it is
essential that aid levels not be reduced further. In that
regard, the Committee fully supports the budget request of
$5,000,000 for the Cuba democracy program and its goal of
promoting a peaceful transition to democracy in that country.
The Committee continues to be concerned about the
resolution of the cases involving the terrorist bombings of the
Israeli Embassy and the AMIA Jewish Community Center in Buenos
Aires, Argentina. While the Committee is pleased by the
developments over a year ago that resulted in the announcement
by Argentine officials that linked Iran to the unresolved
bombings and led to a downgrading of Argentina's relationship
with that country, the Committee urges the Secretary of State
to continue to work with the Government of Argentina to ensure
that progress is made in these cases, and to offer technical
law enforcement assistance where appropriate to bring to
justice the perpetrators of these terrorist acts.

haiti

The Committee is disappointed at the results of United
States attempts to improve the lives of the poor majority in
Haiti. Democratic reforms have stalled for more than two years
and violence has escalated in Haiti. The Committee is
particularly concerned about the dismal performance of major
elements of the Haiti National Police and the related emergence
of Haiti as a major transshipment point for illicit drugs into
the United States. The Committee continues to be fully
supportive of humanitarian assistance to the people of Haiti,
and commends the private organizations through which such aid
is distributed.
Section 558 of the recommended bill would condition
assistance to the Government of Haiti on two certifications:
that Haiti has held free and fair elections and that it is
fully cooperating with the United States in efforts to
interdict the transshipment of illicit drugs.
The bill does not include a dollar ceiling on the level of
assistance in fiscal year 2000, but the Committee notes that
the actual dollar amount made available for Haiti or any other
Latin American or Caribbean nation is limited by section
558(b).

human rights and democracy fund

The Committee directs that, of the funds allocated to the
Human Rights and Democracy Fund, $1,000,000 should be provided
to support the Reagan/Fascell Democracy Fellows Program of the
National Endowment for Democracy to enable activists, scholars,
journalists, and practitioners from around the world to help
make contributions to the strengthening of democracy in their
respective countries. This program was authorized in section
104(a)(2)(B) of H.R. 3427 as enacted into law as part of Public
Law 106-113.

tuna treaty

The Treaty on Fisheries between the United States and the
governments of certain Pacific Island states, popularly known
as the South Pacific Regional Fisheries Treaty, requires that
$14,000,000 in economic assistance be provided annually to the
South Pacific states. Therefore, the Committee recommends that
the treaty obligation be met through the payment of the full
$14,000,000 in fiscal year 2001, as requested by the President.

availability of funds

The Committee has continued language that funds in this
account are to remain available for obligation for two years.

notification for central programs

The Committee is concerned that over the past few years,
and in the fiscal year 2001 budget request, the Administration
has increased the number and size of regional and global
programs funded through the Economic Support Fund. Many of
these programs are managed by the Department of State rather
than the Agency for International Development. The Committee is
concerned that the Department does not have the institutional
capacity to properly manage these programs, and that they have
not been fully justified in terms of program content.
Therefore, in order to facilitate the oversight
responsibilities of the Committee, bill language is recommended
to require that such programs be subject to the regular
notification requirements of the Committees on Appropriations.

International Fund for Ireland

Fiscal year 2000 level................................ $19,600,000
Fiscal year 2001 request.............................. (19,600,000)
Committee recommendation.............................. 25,000,000

The Committee recommends $25,000,000 for the International
Fund for Ireland in support of the Anglo-Irish Accord. Funding
of this amount was requested for this activity through the
Economic Support Fund, but the Committee recommendation would
continue a separate account for assistance to Ireland. The
amount represents an increase of $5,400,000 over the fiscal
year 2000 level and the President's budget request. The
Committee recommendation is being made in order to express
support for implementation of the Good Friday Agreement.
The International Fund for Ireland plays an important role
in promoting peace and stability in Northern Ireland. In
addition to supporting governmental efforts to implement the
Good Friday Agreement and encouraging investment and trade, the
Committee recognizes the importance of community-based
initiatives which build civil society and promote peace and
reconciliation and it encourages the International Fund for
Ireland to support such community-based efforts. Such
activities could include support for the Northern Ireland
Voluntary Trust and for Project Children, and the Committee
urges the International Fund for Ireland to support the work of
these organizations, if appropriate.
The Committee also urges the Department of State to
consider funding up to $250,000 for Project Children through
the Economic Support Fund, if the International Fund for
Ireland is not able to address the needs of this organization.
However, most funding for bilateral assistance for Ireland
should be provided through the International Fund for Ireland,
which was specifically established for this purpose.
The Committee strongly urges the International Fund for
Ireland to take every step possible to ensure that all
recipients of Fund support are promoting equality of
opportunity and non-discrimination in employment. The Committee
further urges the Fund to focus on those projects that hold the
greatest potential for job creation and equal opportunity for
the Irish people, regardless of class, creed, gender, or
ethnicity.

Assistance for Eastern Europe and the Baltic States

Fiscal year 2000 level................................ $535,000,000
Fiscal year 2001 request.............................. 610,000,000
Committee recommendation.............................. 535,000,000

The Committee recommends $535,000,000 for Assistance for
Eastern Europe and the Baltic States, an amount that is the
same as the amount enacted for fiscal year 2000 but $75,000,000
below the budget request.
While the Committee is recommending level funding for this
account, it is also recommending language that will allow the
Administration to utilize local currency that has been
generated by the loan program in Bosnia for programs in Eastern
Europe and the Baltic States. This local currency is
denominated in German Marks, and therefore can be used in
Bosnia, Montenegro, Kosovo, and in other countries and regions
of Eastern Europe. The Committee anticipates that through this
mechanism the U.S. dollar equivalent of $50,000,000 will be
available in fiscal year 2001 to augment the budget authority
contained in this appropriations account. Therefore a program
level of $585,000,000 is being recommended for this account.
The Committee recommendation assumes a reduction of at least
$25,000,000 in the request of $175,000,000 for assistance for
Kosovo.
The Committee intends that funding for democracy programs
though the National Endowment for Democracy continue at least
at the fiscal year 2000 level, and be provided as a transfer of
funds pursuant to section 632(a) of the Foreign Assistance Act.
Notifications pursuant to section 515 of this Act for the
funds appropriated under this heading should continue to be
provided to the Committee in the manner and under the same
conditions in which such notifications were provided during
fiscal year 2000.

burden sharing for kosovo

The Committee remains concerned about the slow pace at
which European donors are fulfilling their pledges for
reconstruction in Kosovo. While the United States has disbursed
its funds quickly, the European Commission and some European
governments have lagged. The Committee finds these delays
troubling, because timely disbursals of assistance are critical
in maintaining and reinforcing stability in this region.
The Committee notes that European donors have increased the
pace of their disbursals in recent months. However, a gap
remains. As of May 30 of this year, the United States had
deployed 98 percent of the officers it had pledged to the
international police force and had paid 100 percent of its
pledge to the budget managed by the United Nations Interim
Administration Mission in Kosovo (UNMIK). The comparable
figures for other NATO and EU members were 64 percent for
police and 79 percent for the UNMIK budget. These levels remain
unsatisfactory.
The Committee recommendation includes sufficient funds for
the United States to contribute its fair share to the
international effort in Kosovo; it does not include funds that
would compensate for delays by other donors. In that regard,
bill language had been included that limits assistance for
Kosovo to 15 percent of the total pledged by all donors for
2001, and further limits assistance to the fiscal year 2000
level of $150,000,000. In addition, funding is prohibited for
large scale physical infrastructure reconstruction.

bosnia and herzegovina

The Committee has recommended the same bill language as in
the fiscal year 2000 Act that prohibits the use of funds for
the construction or repair of housing or residences, unless
directly related to the efforts of United States troops to
promote peace in Bosnia and Herzegovina; requires the written
approval of the Administrator of AID for loans and projects
under the Economic Reconstruction Program; and authorizes the
President to withhold funds for economic revitalization for
Bosnia if he determines that Bosnia is not in compliance with
the Dayton Accord regarding the presence of foreign forces and
has not terminated intelligence cooperation with Iranian
officials. All funds are subject to the provisions of section
532 of this Act.

serbia

The Committee intends that none of the funds provided under
this heading, or in this Act, may be made available for
reconstruction or development activities for the Republic of
Serbia, outside of Kosovo. The Committee supports a
continuation of democratization activities in Serbia. The
Committee is recommending continuation of a general provision,
section 537, that would prohibit funds from being made
available for assistance other than democratization assistance
for the Republic of Serbia. Such assistance is not appropriate
at the present time.
The Committee would also support the allocation of
$350,000, either from this account or from ``Peacekeeping
Operations'', as a voluntary contribution to the Organization
for Security and Cooperation in Europe (OSCE) and the OSCE
Parliamentary Assembly to facilitate contacts with democratic
forces in Serbia and Montenegro and strengthen democracy-
building efforts on a multilateral basis.

montenegro

The Committee strongly supports assistance for the Republic
of Montenegro, and urges the Administration to make every
effort to assist the Government of the Republic. Such
assistance should include balance of payments support, as well
as ongoing and new initiatives to help make the economy of
Montenegro less dependent on trade with Serbia. The Committee
strongly supports the President's budget request of $55,000,000
for Montenegro for fiscal year 2001, an increase of $20,000,000
over the fiscal year 2000 level. In addition, the Committee
notes that on March 30, 2000, the House of Representatives
passed H.R. 3908, the 2000 Emergency Supplemental
Appropriations Act, by a vote of 263 to 146. That legislation
contains $34,000,000 in supplemental funds for Montenegro.

The baltic states

The Committee has included bill language that recommends
that $5,000,000 should be provided for assistance for the
Baltic States. Although these countries no longer have AID
missions, they are still emerging from decades of dominance by
the Soviet Union and continue to need United States technical
assistance in order to emerge into the community of Western
nations. The Committee is also concerned that the Department of
State has focused resources from this account almost
exclusively on southeast Europe and the Balkans to the
detriment of the Baltic states and the other nations of central
Europe.
The Committee intends that these resources be used in the
Baltics for the following purposes:
Regional energy programs, including the privatization
of state-owned energy sector, assisting United States
energy companies interested in the region, and helping
to create regional grids which support the closure of
the Chernobyl-type reactor in Lithuania;
Regional environment programs, such as dealing with
the heavy metals and nuclear waste in both the civilian
and military sectors;
Anticrime and anticorruption programs, including
efforts to combat the Russian mafia and other organized
crime organizations; and
Rule of law programs, including professional training
for members of judiciary and prosecutors.
The Committee intends that activities to combat regional
health problems also be supported for the Baltics, but the
Administration should also consider funding such programs
through the ``Child Survival and Disease Programs Fund''.
The Committee directs that the Department of State and the
Agency for International Development report to the Committees
on Appropriations by February 1, 2001, on plans to implement
these programs in the Baltics. The Committee does not believe
the maintenance of such programs will require AID to open
missions in any of these countries. Such programs can and
should be managed on a regional basis.
Other regional programs are appropriate as well. In Poland,
for instance, the Committee encourages AID to support the
efforts of the National Center for Computational Hydroscience
and Engineering (NCCHE) as it develops processes which can be
applied to water and soil resources issues. It is the
Committee's understanding that the Polish Government believes
that such problems create barriers to economic development and
therefore has pledged to share the cost of developing these
technologies at the NCCHE. Therefore the Committee requests
that funds be provided to transfer this technology to the
Polish Academy of Sciences.

institution of higher education in Macedonia

The Committee supports the establishment of an
international institution of higher education in Macedonia that
is fully accredited by the Macedonian Government. The
Administration should ensure, to the greatest extent possible,
that the curriculum includes courses in the English language,
particularly in business administration. It should also
emphasize public administration and technology, with degrees
recognized by the Macedonian national educational system. The
institution should be developed in conjunction with other
donors and its policies should reflect the recommendations of
the Organization for Security and Cooperation in Europe's High
Commissioner for National Minorities. The Committee expects the
Administration to provide $5,000,000 over two years for the
establishment and support of the faculty and programs of such
an institution and for related costs, including the
implementation of necessary changes in the legal framework.

treatment of orphans

The Committee continues to be very concerned by the
condition of orphaned children in the Federation of Bosnia and
Herzegovina. While Bosnian families have been reluctant to
adopt many of these children, American families have shown an
interest in adopting Bosnian children. Unfortunately,
legislative barriers within the Federation have prevented
foreign adoptions, and the Committee is very disturbed that
little action has been taken to modify these provisions. The
Committee strongly encourages the Government of the Federation
of Bosnia and Herzegovina to enact legislation that will
expedite the adoption of Bosnia children by foreign families,
and directs the Secretary of State to report not later than
December 1, 2000, on the steps that have been taken both by
Bosnia and by the Department to encourage passage of such
legislation.

legal initiatives and the rule of law

The Committee encourages the Agency for International
Development to continue to provide financial support for the
Central and Eastern European Law Initiative (CEELI), a project
of the American Bar Association. CEELI has received grants to
help Central and East Europe and the NIS create new legal
frameworks based on the rule of law rather than through party
doctrine or caprice.
Through a variety of program components, CEELI is making
available legal expertise to assist countries that are in the
process of modifying or restructuring their laws or legal
systems. CEELI emphasizes long-term engagement country-by-
country and supports projects that facilitate extensive
consultations with policy-makers, legal scholars, judges, and
attorneys. CEELI has focused work in several critical priority
areas: constitutional reform; judicial restructuring; bar
reform; commercial law; criminal law and procedure; and legal
education reform, and has helped develop and/or
institutionalize self-sustaining indigenous nongovernmental
organizations (NGOs). The Committee encourages support for this
type of private sector involvement.
The Committee acknowledges the efforts the Czech Republic
has taken to move toward a market economy. However, it is
concerned by reports that some investors and companies have not
been provided treatment consistent with the rule of law. Of
particular concern are reports that the investors and managers
of NOVA-TV (Central European Media Enterprises) have not been
treated fairly by officials of the Czech Republic. The
Committee requests that the Government of the Czech Republic
ensure that contracts are enforced, and that resolution of this
matter be dealt with in a timely manner.
In furtherance of efforts to establish the rule of law in
central Europe and in the former Soviet Union, the Committee
urges the Administration to fund a distance learning program of
instruction in basic legal principles for students and
professionals in the region. Such a program has been proposed
by Florida State University, and the Committee urges that
$2,000,000 be provided for this effort in fiscal year 2001.
This should help advance the goal of assisting emerging
democracies in building open societies through improved legal
education.
In addition, the Committee requests that AID review and
fund, if appropriate, the proposal to initiate the Romanian
American Trade Development Center which is coordinated by
George Mason University, James Madison University, the Software
Association of Romania, and the Romanian Research and
Development Technology Center.

training and exchanges in the former soviet union and central europe

The Committee continues to support training, exchanges, and
partnerships between the United States and the nations of
Eurasia, Central Europe, and the southern tier of Europe. These
programs are in the interest of the United States and important
to sustaining democracies. The Committee recommends the
Administration provide funding for the Russian, Eurasian, and
East European Research and Training Program (Title VIII) at the
fiscal year 1999 level.
The Committee recommends the East Central European
Scholarship Program (ECESP) be continued at least at the same
level as fiscal year 2000 to allow the program to continue to
address the needs of the countries in the southern tier of
Central Europe. The Committee also urges funding of the
proposal of the University of Northern Iowa to replicate its
success with the Orava Project in other countries in the
region.

Women's Programs

The Committee recognizes the important role women play in
building democratic societies and lasting peace in regions of
conflict. Women are often at the forefront of these efforts in
the Balkans: women's organizations in Kosovo, Bosnia, Croatia,
and elsewhere have a history of working collaboratively across
borders to find regional solutions to social and economic
problems. USAID has contributed to peace building and civil
society development in the region by supporting women leaders
and women's organizations. The Committee encourages AID to
continue its support for programs that involve women in
conflict resolution.
In this regard, the Committee is aware of the expertise of
Women's Campaign International and World Learning's STAR
Network and urges support for these organizations to the
fullest extent possible.

Assistance for the Independent States of the Former Soviet Union

Fiscal year 2000 level................................ $839,000,000
Fiscal year 2001 request.............................. 830,000,000
Committee recommendation.............................. 740,000,000

The Committee recommends $740,000,000 for Ukraine, the
Southern Caucasus states, Russia, and the Central Asian
republics of the former Soviet Union. This is $90,000,000 less
than the request and $99,000,000 less than the enacted fiscal
year 2000 level.
The Committee has included in subsection (a) prior year
language providing the funds under this heading
``notwithstanding any other provision of law'' and applying the
provisions of section 498B(j) of the Foreign Assistance Act. A
general provision (section 517) also includes long-standing
language on human rights, and non-use of funds for enhancing
military capacities, and providing all funds subject to
separate notification.

child survival and infectious diseases

The Committee continues to be concerned about the low
priority assigned to declining maternal and environmental
health conditions and the increasing incidence of TB/HIV/AIDS
in Russia, Ukraine, and the Central Asian Republics. The
positive results achieved with the small amounts already spent
for such programs in recent years have been dramatic. The
health and child survival sector can effectively absorb
increased resources, with an immediate and personal impact on
the demographically-stressed citizens of these nations. In
order to demonstrate its support for these high priority
activities that directly affect the citizens of these
countries, the Committee has included bill language allocating
not less than the request level of $45,000,000 for them.
The Committee is aware of and commends the Birth Defects
Monitoring Program recently instituted in Ukraine to detect the
incidence of birth defects related to the Chernobyl accident.
The Committee recommends that $1,000,000 be provided for this
purpose in fiscal year 2001. The Committee also commends AID
for its efforts to prevent the trafficking of young women from
the region and expects successful programs to be expanded. A
new program, the Primary Health Care Initiative of the World
Council of Hellenes, has come the attention of the Committee.
Funded by the Coordinator's Office of Humanitarian Assistance
in fiscal year 2000 at a level of $1,000,000, this project
merits consideration, based on its success, for $3,000,000 in
2001.

Healthcare International and Community Partnerships in Eurasia

The Committee commends the American International Health
Alliance (AIHA) and its partners in the new community-based
primary health care partnership program in the former Soviet
Union and Eastern Europe. This innovative program is actively
improving local health systems in the former Soviet bloc that
have deteriorated over the past decade, especially as they
affect services to women and children.
An example of a successful partnership between the
Volgograd State Medical Academy in Russia and the University of
Arkansas for Medical Sciences has been brought to the
Committee's attention. This program has been mutually
beneficial to Russia and the United States as young medical
professionals from Russia receive advanced medical training
delivered in a rural setting while the people of Southern
Arkansas benefit from improved access to health providers. The
Committee strongly recommends that AID extend and expand this
program at an annual cost of $500,000, matched by non-Federal
contributions.
The Committee notes the collaboration between the AIHA and
Carelift International, and the fact that AID has committed
$3,700,000 over the past 12 months to Carelift International to
provide medical equipment and related training to AIHA
partners. The Committee understands that less than half of the
initial two year obligation of $1,500,000 for Carelift
International has been expended to date and that AID has
announced its intent to obligate an additional $2,200,000 from
fiscal year 2000 funds for expenditure in 2001-2002. The
Committee appreciates the humanitarian work of Carelift as it
uses its remaining $2,750,000 over the two years, and
anticipates that the multiyear collaboration between AIHA and
Carelift International may require $7,000,000, including future
year appropriations.

russia-iran

The Committee again recommends language dealing with
Russian nuclear and ballistic missile cooperation with Iran.
The language is identical with that contained in existing law.
The Committee remains extremely disturbed by reports, which
indicate that Russian entities are extensively engaged with
Iran in cooperative projects that significantly enhance Iran's
ballistic missile capabilities. The ballistic missile
cooperation, combined with Russian nuclear cooperation with
Iran, represent a significant step in Iran's efforts to obtain
a comprehensive, highly sophisticated weapons of mass
destruction capability. The Committee reiterates the language
from the fiscal year 2000 Statement of the Managers ``that
assistance to combat infectious diseases, child survival and
non-proliferation activities, support for regional and
municipal governments, and partnerships between United States
hospitals, universities, judicial training institutions and
environmental organizations and counterparts in Russia should
not be affected by this section.''

Chechnya

The Committee is very concerned about continuing military
actions by the Russian Federation in and around Chechnya. In
addition to possible human rights violations by the forces of
the Russian Federation, this large military presence is a
violation of article V of the Treaty on Conventional Armed
Forces in Europe. Therefore the Committee is recommending bill
language that prohibits assistance for the Government of the
Russian Federation until the Secretary of State certifies that
the Russian Federation is in compliance with article V of the
Treaty on Conventional Armed Forces in Europe regarding forces
deployed in the flank zone in and around Chechnya.
The Committee does not intend that assistance to combat
infectious diseases, child survival and non-proliferation
activities, support for regional and municipal governments, and
partnerships between United States hospitals, universities,
judicial training institutions and environmental organizations
and counterparts in Russia would be affected by this provision.

Southern Caucasus region: Armenia, Azerbaijan, and Georgia victims of
the nagorno-karabagh conflict

Again this year, the Committee designates as a high
priority U.S. assistance to the victims of the Nagorno-Karabagh
conflict, both those residing in and displaced from Nagorno-
Karabagh. With regard to the former, the Committee directs,
without further delay, that the remainder of the $20,000,000 in
humanitarian assistance initially provided in the fiscal year
1998 Act be released for obligation. With regard to the latter,
the Committee requests the Secretary of State to report in
writing to the Committee within 15 days of the enactment of
this bill on the amounts of assistance provided by the United
States, other bilateral donors, and international organizations
to such displaced persons in 1998 and 1999, the estimates for
2000, and the projections for 2001, the gap between
requirements and projected donor totals in 2001, and measures
taken by the United States to meet its share of any projected
gap in 2001 between requirements and projected resources for
such displaced persons.

support of peaceful resolution of South Caucasus conflicts

The Committee reiterates themes included in its last three
reports:
The extent and timing of United States and multilateral
assistance, other than humanitarian assistance, to the
government of any country in the Caucasus region should be
proportional to its willingness to cooperate with the Minsk
Group and other efforts to resolve regional conflicts.
In furtherance of a peaceful resolution to the Nagorno-
Karabagh conflict, and in support of the confidence building
measures discussed at NATO and OSCE summits, the Committee
strongly supports confidence-building measures among the
parties to the conflict. Such measures could include
strengthening compliance with the cease-fire, studying post-
conflict regional development such as water management,
transportation routes and infrastructure, establishing a youth
exchange program and other collaborative and humanitarian
initiatives to foster greater understanding among the parties
and reduce hostilities.
The Committee remains concerned that the important Office
of Special Negotiator for Nagorno-Karabagh and NIS Regional
Conflicts within the U.S. State Department has often lacked
timely support from the Department of State. Given the lack of
progress in settling the conflicts in Nagorno-Karabagh and
Abkhazia, the Committee again urges the Secretary of State to
move forthwith to appoint a high-level, long-term Special
Negotiator to facilitate direct negotiations and any other
contacts that will bring peace to the people of the South
Caucasus. The Secretary is further urged to remain engaged in
the regional peace process.
The Committee has been apprised that on May 18, 2000, the
Minsk Group convened a meeting of 19 international
organizations to assess their ability to respond effectively
and efficiently to a peace settlement between Armenia and
Azerbaijan. This ``reference group'' agreed that, if peace
could be achieved, hundreds of millions of dollars would become
available for reconstruction and resettlement. The reference
group is preparing to send a needs assessment team to the
region to develop an accurate technical analysis of the funding
requirements in the event of a peace settlement.
The Committee has included renewed authority for the
President to provide humanitarian assistance to the region,
notwithstanding the restrictions of Section 907 of the FREEDOM
Support Act. The bill language is unchanged from last year.
This exemption allows for direct assistance by American NGOs to
refugees and displaced persons throughout the region, including
those in Nagorno-Karabagh. The Committee understands that
humanitarian assistance may include a broad range of activities
and partnerships with United States hospitals and universities
in maternal and children's health, eldercare, basic education
and environmental health.
The Committee also reiterates the statement contained in
prior year reports on this bill that its actions regarding
Armenia and Azerbaijan are not meant to express a view on the
political status of Nagorno-Karabagh.

armenia

The Committee recommends continuation of current law
providing that not less than a fixed percentage of the funds
appropriated under this heading is allocated for Armenia. For
2001, the percentage is 12.5 or one-eighth. The Committee
intends that a significant part of the assistance for Armenia
continue to support small enterprises and housing in the 1988
earthquake zone. The Committee is aware of the work of the
Armenian Technology Group in assisting the Armenian private
sector in a seed multiplication program. The Committee supports
the expansion of these efforts in additional countries in the
Central Asia region.

georgia

The Committee recommends continuation of current law
providing that not less than a fixed percentage of the funds
appropriated under this heading is allocated for Georgia. For
2001, the percentage is 12.5 or one-eighth. The Committee
intends that that a significant part of the assistance for
Georgia continue to be provided for technical security
assistance for border and export control.

azerbaijan

The Committee recommends renewing the current one-year
waiver of section 907 for activities in support of democracy in
Azerbaijan and for activities in support of American business
in Azerbaijan by the Trade and Development Agency, the Export-
Import Bank, OPIC, and the U.S. Foreign Commercial and
Agricultural Services. It also includes humanitarian assistance
in the waiver.

ukraine

The Committee notes that one of the most important elements
of private sector development is agriculture and rural industry
based on agriculture. The Committee supports continuing efforts
to help emerging small, private farms and independent private
suppliers and marketing operations in the independent states.
The survival of viable smaller private enterprises where few or
none have existed before will be a benchmark for AID's decade-
long involvement in Ukraine and the entire region.
As private sector development is expedited by the
introduction of community-owned telecommunications systems,
universal access to information gives small-scale producers
information about market conditions that allow their businesses
or farms to succeed. The Committee strongly advises AID to
emphasize community-based telecommunications projects in its
regional initiatives.
The Committee supports consideration of a terminal three
year grant of up to $5,000,000 to enable the Ukrainian Land and
Resource Management Center to complete its goal of becoming
self-sustaining.

expanded threat reduction

The request included $141,000,000 for the second year of an
Expanded Threat Reduction (ETR) program, of which $87,000,000
is requested under this heading and $54,000,000 is requested
from the ``Nonproliferation, Anti-terrorism, Demining, and
Related Activities'' account. The Committee includes
$78,000,000 for programs justified as part of the ETR,
including $14,000,000 for the bilateral U.S. Civilian Research
and Development Foundation (CRDF) in this account, and not less
than the request of $15,000,000 for the Georgia Border Security
and Related Law Enforcement Assistance Program.
The Committee recommends that of the amounts provided for
ETR activities, up to $2,000,000 be made available for
collaborative research grants for American and Russian scholars
concerning the enhancement of verification of arms control and
nonproliferation agreements, confidence-building measures to
enhance international security, and economic and political
studies of defense conversion. The Committee recommends that
the Department of State make use of such organizations as the
National Council for Eurasian and East European Research in
establishing and administering this program.

Detention of Edmond Pope in Russia

The Committee notes with deep concern the imprisonment of
Edmond Pope by the Government of the Russian Federation. A
retired U.S. Navy Captain, Mr. Pope was in Russia on behalf of
the Applied Research Lab at the Pennsylvania State University
to arrange for a new testing facility contract for a high-speed
underwater technology project. Based on the facts as they have
been presented to the Committee, this was a legitimate, open
business transaction and the technology being purchased has
been declared to be available through commerical sale. The
Committee expresses its strong support for his immediate
release. Until the charges are dismissed and Mr. Pope is
released from prison, the Committee recommends that the
Administration sharply curtail new financial support for Russia
and technological exchanges with the Russian Federation.

enterprise funds

The Committee is concerned that the initial funding
allocations made to the U.S. Russia Investment Fund (TUSRIF)
and the Western NIS Enterprise Fund in fiscal year 2000 were
inadequate. The Committee urges the State Department and AID to
provide not less than $50,000,000 to TUSRIF over the fiscal
years 2000 and 2001, as the Fund demonstrates its ability to
promote the development of a market economy in Russia. The
Committee commends the Fund's innovative housing mortgage
program. In return for a more rapid rate of Federal investment
in TUSRIF, the Committee expects it to work more closely with
United States companies and investors and with businesses
located in the vicinity of U.S. regional investment cities.
The Committee welcomed the return of $40,000,000 to the
U.S. Treasury by the Fund's companion enterprise fund in
Poland, and anticipates the receipt of an additional
$80,000,000 in fiscal years 2000 and 2001. The Committee
expects that more rapid capitalization of the U.S. Russian
Investment Fund may lead over time to a similar repatriation of
foreign aid funds to the U.S. Treasury.

violence against women

The Committee continues to be very concerned about the
incidence of violence against women in Russia, Ukraine, and
Central Asia and the indifference of many law enforcement
officials to such crimes. Funds should be made available to
improve the response of Russia's and Central Asia's law
enforcement and judicial system to women victims of violence.

religious freedom in russia

The Committee continues to be concerned about the dire
consequences to several religious groups resulting from
regional enforcement of the religious freedom statute in the
Russian Federation.
The recommended bill again includes language addressing
this matter that is identical with language in the 1999 and
2000 Acts.
The Committee does not intend that the limitation on
assistance to the ``Government of the Russian Federation''
limit assistance for regional and municipal governments or
partnerships between United States hospitals and universities
and counterpart institutions in Russia.

Independent Agencies

Inter-American Foundation

Fiscal year 2000 level................................ ($5,000,000)
Fiscal year 2001 request.............................. 20,000,000
Committee recommendation.............................. (10,000,000)

The Committee recommends up to $10,000,000 for the Inter-
American Foundation, provided through the ``Development
Assistance'' account. This is $10,000,000 below the budget
request.

African Development Foundation

Fiscal year 2000 level................................ ($14,400,000)
Fiscal year 2001 request.............................. 16,000,000
Committee recommendation.............................. (16,000,000)

The Committee recommends funding for the African
Development Foundation at a level of $16,000,000, provided
through the ``Development Assistance'' account. This is the
mechanism used in fiscal year 2000, instead of a separate
account as requested by the President. This is an increase of
$1,600,000 above the fiscal year 2000 level.

Peace Corps

Fiscal year 2000 level................................ $245,000,000
Fiscal year 2001 request.............................. 275,000,000
Committee recommendation.............................. 258,000,000

The Committee recommends $258,000,000 for the Peace Corps,
an amount that is $17,000,000 less than the budget request and
$13,000,000 above the amount enacted for fiscal year 2000.
Prior year language addressing purchase of motor vehicles,
abortion, and availability of funds has been continued in the
bill. The Committee supports the work of the Peace Corps and of
its volunteers who currently work in 77 countries.

Department of State

International Narcotics Control and Law Enforcement

Fiscal year 2000 level................................ $305,000,000
Fiscal year 2001 request.............................. 312,000,000
Committee recommendation.............................. 305,000,000

The Committee recommends $305,000,000 for ``International
Narcotics Control and Law Enforcement''. This is $7,000,000
below the budget request and the same as the fiscal year 2000
level. The Committee has included bill language requiring that
all funds in this account for anti-crime activities be notified
in advance to the Committees on Appropriations, including those
which make use of ``notwithstanding'' authority. The Committee
notes that section 520 of the bill applies to the use of
Narcotics Control and Law Enforcement funds for Colombia. The
Committee supports the use of up to $10,000,000 from funds
under this heading for Law Enforcement Training and Demand
Reduction programs.
The Committee continues to support a strong U.S.
counternarcotics assistance program in order to protect U.S.
communities from the ravages of drugs, and believes INL has
considerable resources, made available through annual and
supplemental appropriations, to meet these challenges.

Colombia

The Committee commends the continued efforts of the
democratically elected Colombian Government to advance a peace
process to resolve the conflict in Colombia. President
Pastrana's decision to seek a negotiated settlement with the
Revolutionary Armed Forces of Colombia (FARC) guerrilla group--
known for its ruthless policies of kidnapping, extortion and
murder of innocent civilians--will be lengthy and difficult.
The Committee urges all sides in the Colombian conflict to make
renewed efforts to achieve a peaceful, negotiated settlement,
and encourages the U.S. State Department to continue to support
these difficult efforts.
The Committee is concerned about reports of serious
violations of basic human rights and urges all parties to
adhere to recognized standards of international humanitarian
law. The Committee believes that the Government of Colombia
must move decisively to carry out arrest warrants for
paramilitary leaders and to ensure that any links between
official security forces and paramilitary activities are ended.
The Committee calls on the Department of State to ensure
that all U.S. laws regarding human rights, including section
564 of this Act, are strictly applied in Colombia. In addition,
the Committee requests that the Secretary of State submit to
the Appropriations Committees a semi-annual report beginning
not later than March 1, 2001, with respect to Colombia. Each
report shall include an accounting of all aircraft, vehicles,
boats and lethal equipment (other than ammunition) transferred
to Colombia's military or police with funds made available
under this title. Further, the report shall contain an
accounting of the number of U.S. Armed Forces personnel
deployed or assigned to duty in Colombia at any time during the
preceding 180 days with funds made available under this title,
the length and purpose of the deployment or assignment, and the
associated costs and force protection risks.
The Committee directs the Department of State to report not
later than March 1, 2001, on the use of funds appropriated in
Public Law 106-31 for counterdrug research and development and
specifically on the uses of funds for mycoherbicide research,
development, and use.

Peru

The Committee continues to be concerned about the serious
setbacks to democracy, human rights and the rule of law in Peru
under the government of President Alberto Fujimori. The April
9, 2000, and May 29, 2000, presidential and congressional
elections in Peru were tainted by widespread irregularities and
fraud. Pre-election monitoring delegations by the Carter Center
and National Democratic Institute determined that ``the
conditions for a fair election campaign have not been
established. Irreparable damage to the integrity of the
electoral process has already been done.'' The Committee notes
the systematic harassment--largely attributed to the Peruvian
National Intelligence Service (SIN)--faced by journalists in
Peru. The Committee is also concerned about the Fujimori
government's tight control over the judiciary and the continued
imprisonment of hundreds of Peruvians on terrorism charges.
The Committee directs the Secretary of State to urge the
Government of Peru to accept the ruling of the Organization of
American States' Inter-American Court of Human Rights, to
restore freedom of the press in Peru, including the return to
Baruch Ivcher of both his Peruvian citizenship and channel 2
television station and to ensure a prompt and fair review of
the hundreds of Peruvians in jail on terrorism charges.

Bolivia

The Committee is pleased with the extraordinary success of
the Bolivian government's program, known as the ``Dignity
plan'', to eradicate illegal coca leaf production and
completely end the country's illegal drug trade by 2002. This
effort represents one of the most ambitious elements of our
hemisphere's war on drugs and should be seen as a model for
other nations to follow. The Bolivian government has put
forward a comprehensive fiscal year 2001 budget and program to
continue to eradicate and interdict illegal coca, provide
alternative development for Bolivia's agricultural sector and
bolster drug prevention programs. The Committee expects the
State Department to provide Bolivia with the highest level of
funding possible in order to assist Bolivia meet its ambitious
goals under its ``Dignity plan''.

due process of law in ecuador

The Committee requests the Secretary of State to submit a
report to the Committees on Appropriations not later than
February 1, 2001, which shall evaluate the Ecuadoran judicial
process including arrests, prosecution, full trial process, and
sentencing and confirmation process with respect to United
States citizens prosecuted in that country since January 1,
1996. The evaluation shall determine whether actions in these
stages have been in compliance with the Ecuadoran Constitution
and legal code and shall evaluate the impact of U.S. foreign
assistance to Ecuador on the effectiveness and lawfulness of
the Ecuadoran judicial system.

Philippines

The Committee is concerned with the increasing illegal drug
trafficking into the United States from East Asia, especially
in Vietnam, Cambodia and the Philippines. The Committee
continues to support International Narcotics Control programs
in East Asia designed to strengthen law enforcement
institutions so they can better deal with increases in drug
trafficking. Further, the Committee encourages INL to enhance
its existing regional counter-drug cooperation programs in this
region. The Committee is aware of current steps being taken by
the Philippine National Police to effectively combat narcotics
trafficking, but notes that the National Police lack resources
to meet these requirements. Therefore, the Committee supports
the use of INL resources to upgrade Philippine National Police
equipment, including maritime and air assets and surveillance
equipment, to support mutually beneficial counter-drug
programs.

Assistance to Plan Colombia

Fiscal year 2000 Emergency Supplemental request....... $818,000,000
Fiscal year 2001 request.............................. 256,000,000
Committee recommendation.............................. ................

The Committee has not provided funding in its fiscal year
2001 recommendation for Plan Colombia. The budget request for
fiscal year 2001 for assistance for Plan Colombia is
$256,000,000. The Committee has addressed both the fiscal year
2000 emergency supplemental appropriation budget request and
the fiscal year 2001 budget request for Plan Colombia
separately.
The Committee continues to support Plan Colombia, the
Colombian Government's effort to halt the flow of drugs into
the United States and to aid Colombian local and national
governing ability. While funding for Plan Colombia is addressed
separately, funds from the ``International Narcotics Control
and Law Enforcement'' account in this Act will directly support
Plan Colombia. The Committee directs INL to consider purchasing
American-made mobile field hospitals to support the existing
Colombian Army counternarcotics battalion in Southern Colombia.
The Committee believes that these field hospitals also can
serve as health clinics for rural communities, providing health
care to underserved regions. The Committee directs that up to
$10,000,000 from funds under this heading and from any funds
made available to support Plan Colombia for this purpose.
To help improve human rights and to strengthen democracy,
the Committee encourages up to $1,200,000 for the University of
Notre Dame from the ``International Narcotics Control and Law
Enforcement'' account and from any funds made available to
support Plan Colombia. These funds will support Notre Dame's
program of human rights, democracy, and conflict resolution
training for a broad spectrum of Colombian Government and civic
leaders. The Committee expects Notre Dame to receive private
funding to complement the U.S. Government's commitment to this
activity and to conduct the essential elements of this program
in Colombia.

Migration and Refugee Assistance

Fiscal year 2000 level................................ $625,000,000
Fiscal year 2001 request.............................. 658,212,000
Committee recommendation.............................. 645,000,000

The Committee recommends $645,000,000 for ``Migration and
Refugee Assistance'', an amount that is $13,212,000 below the
request but is $20,000,000 more than the amount enacted for
fiscal year 2000. A limitation of $14,852,000 is recommended
for administrative expenses, as requested.

Tibetan refugees

The Committee supports continued funding to assist Tibetan
refugees and directs $2,000,000 for this purpose. The Committee
requests that the Department of State coordinate with the
Agency for International Development in determining the funding
responsibility for long-term assistance for Tibetan refugees,
including assistance to refugees residing in India. In that
regard, the Committee would support the proposal to fund the
Tibetan Resettlement Project in Dehradum, consistent with
Tibetan cultural practices.

Resettlement in Israel

The Committee supports $60,000,000 for the resettlement of
Russian, Eastern European and other humanitarian migrants in
Israel, consistent with House Report No. 105-401. The Committee
notes that the resurgence of anti-Semitism in Russia has led to
a significant increase in Jewish emigration to Israel in the
past eighteen months. In light of the unsettled conditions in
Russia and the increased number of immigrants arriving in
Israel, the Committee believes that this level of funding
should be sustained to ensure a continuation of the programs
now serving this population.

unaccompanied and at-risk children

The Committee supports funding for programs for
unaccompanied and at-risk refugee children. The Committee
recommends that the Department of State provide funding through
nongovernmental organizations and United Nations agencies for
children who are orphaned, separated from their parents, or
have other special needs as a result of armed conflict or other
causes of forced migration. This funding should support
programs whose principal goal--rather than merely a collateral
benefit--is to assist children in these situations.

Africa refugee admissions and assistance

The Committee commends the Department of State for
increasing the refugee admissions program's focus on refugees
most in need of rescue, particularly those from sub-Saharan
Africa. Admissions of refugees from Africa increased from 7,000
in fiscal year 1998 to 13,000 in fiscal year 1999, an increase
of approximately 85 percent. The Department of State has
informed the Committee that it expects to admit 18,000 refugees
from Africa in fiscal year 2000, an increase of more than 70
percent. The Committee encourages the Department of State to
continue giving priority to refugees most in need of rescue,
including those from Africa.
The Committee is concerned about significant disparities in
funding for assistance to refugees in different regions of the
world. In the past decade, while refugee programs in Europe
have received strong support, many programs in Africa have been
severely under-funded.
The Committee is aware that the Department of State
traditionally contributes twenty to twenty-five percent of the
funds required for refugee programs managed by the United
Nations High Commissioner for Refugees and certain other
international relief agencies. The Committee encourages the
Department to exercise more flexibility, where appropriate, to
compensate for the disparities noted above. So, for example,
the United States might contribute 10 percent to a program in
Europe that attracts substantial funding from other governments
but 50 percent to an effective program in Africa that is being
neglected by other donors.

Staffing

The Committee supports appropriate staffing to ensure
effective management of the funds in this account. For this
reason, the Committee has endorsed the Department of State's
request for an increase in administrative funds, which will pay
for additional personnel in the Bureau of Population, Refugees,
and Migration. The Committee recognizes that the Bureau's work
has become more labor-intensive in recent years as it has
channeled more funds through nongovernmental organizations and
increased refugee admissions from locations that are difficult
to access. Still, the Committee is concerned that, because the
current staffing pattern has evolved in part in response to
crises, it may be skewed toward certain areas of the world.
While the Bureau's staffing must adjust for crises, it should
not be crisis-driven.
The Committee requests the Bureau to compare the numbers of
staff members working on different issues and geographic areas
with the Bureau's responsibilities in those areas and, if
appropriate, to make adjustments. In assessing its
responsibilities in a geographic area, the Bureau should
consider criteria such as the number of countries/crises
grouped together; the amount of assistance resources flowing
there; the number of organizations receiving Bureau funds in
that area; the volume of admissions from that region; and
political reporting requirements. In assessing its staffing
level, it should consider all categories of personnel,
including Washington and field-based, direct hire and
contractors, American and foreign nationals, etc. The Committee
directs the Bureau to develop a plan for shifting additional
staff as required when crises emerge and reducing their numbers
when the crises subside. The Committee requests that the Bureau
report to the Committee not later than March 1, 2001, on both
of these directives.

Coordination with OFDA

The Committee notes that, in recent years, the Bureau of
Population, Refugees, and Migration (PRM) has increased its
direct funding of nongovernmental organizations. As a result,
it is now using many of the same implementing partners as AID's
Office of Foreign Disaster Assistance (OFDA) to carry out
similar activities. The Committee commends the coordination
between PRM and OFDA at the peak of the Kosovo crisis, in
particular their practice of discussing project proposals with
each other before making funding decisions. The Committee
considers such coordination essential to ensure optimal use of
taxpayer funds. The Committee directs PRM and OFDA to jointly
develop standard operating procedures for cooperation whenever
both agencies respond to the same crisis or are present in the
same geographic area, and methods for ensuring that these
procedures become institutionalized. The Committee requests a
report on the implementation of these directives not later than
March 1, 2001.

United States Emergency Refugee and Migration Assistance Fund

Fiscal year 2000 level................................ $12,500,000
Fiscal year 2001 request.............................. 20,000,000
Committee recommendation.............................. 12,500,000

The Committee recommends $12,500,000 for the Emergency
Refugee and Migration Assistance (ERMA) Fund, which is the same
as the 2000 enacted level and $7,500,000 below the 2001 budget
request.
The Committee notes that, as of June 1, 2000, the ERMA Fund
maintained a balance of $145,309,659. This balance is more than
twice the amount the ERMA Fund has carried forward into any
previous fiscal year. The Committee considers it appropriate
for the ERMA Fund to maintain a sizable balance, since the
purpose of this account is to facilitate a quick response to
humanitarian emergencies. Still, the Committee believes that,
with the current balance in the Fund, a larger appropriation to
this account cannot be justified.
The Committee is concerned that the Administration may be
using an overly stringent standard in judging whether to draw
down the ERMA Fund. The primary criterion for the use of these
resources should be the emergency needs of refugees and other
persons who fall within the mandate of the ERMA Fund. The
Committee directs the Administration to use this Fund when
these populations face serious threats to their security or
physical well-being and other resources are not available to
address these threats. The Committee does not wish to see a
situation in which critical humanitarian needs go unmet while a
large fund created to address these needs remains untouched.

Nonproliferation, Anti-terrorism, Demining and Related Programs

Fiscal year 2000 level................................ $216,600,000
Fiscal year 2001 request.............................. 346,740,000
Committee recommendation.............................. 241,600,000

The Committee recommends a total appropriation of
$241,600,000 for ``Nonproliferation, Anti-terrorism, Demining
and Related Programs'', an amount that is $105,140,000 below
the request but $25,000,000 above the fiscal year 2000 enacted
level.
The Committee recommendation funds the President's budget
request for this account with three major exceptions:
Funding for the Korean Peninsula Energy Development
Organization (KEDO) is recommended at the fiscal year
2000 enacted level of $35,000,000, a reduction of
$20,000,000 from the President's request;
Funding for a new Center for Antiterrorism and
Security Training (CAST) has not been provided, a
reduction of $30,000,000 from the President's request;
and
Funding for Science Centers is provided at a level of
$25,000,000, rather than $45,000,000 as requested by
the President.
In addition, the Committee has not addressed the request of
$41,240,000 associated with funding for the Lockerbie bombing
trial in the Netherlands (including $6,000,000 in advance
appropriations). The budget amendment containing this funding
proposal was received on Monday, June 5, 2000, and the
Committee has had little opportunity to review the merits of
the request. The Committee notes that one of the proposed
offsets for this additional funding is not under the
jurisdiction of the Subcommittee on Foreign Operations, Export
Financing, and Related Programs, and the other offset proposed
would not be scored as negative budget authority by the
Congressional Budget Office. Thus the Administration has not
proposed legitimate offsets for this additional spending that
are available for use by the Subcommittee on Foreign
Operations.
Funding for the proposed Center for Antiterrorism and
Security Training (CAST) has not been provided, both due to
budget constraints and due to the fact that funding for
domestic law enforcement training is not under the jurisdiction
of the Subcommittee on Foreign Operations, Export Financing,
and Related Programs. Although the proposal for CAST includes
training for foreign law enforcement purposes, the Committee
believes that these needs can be met by training at existing
facilities and encourages the Department of State to coordinate
with the Federal Law Enforcement Training Center (FLETC) and
the Department of Justice in this regard. To the extent that
other Federal entities were seeking to participate in the
proposed training facility, such needs should be pursued
through the proper subcommittees of jurisdiction.
The Committee has included bill language from 2000 that
imposes the requirement for notice prior to the obligation of
funds for the CTBT Preparatory Commission.
The Committee strongly encourages the Department of State
to consult with the Government of Pakistan on efforts to
increase anti-terrorism and anti-crime cooperation. Increased
activities in this regard would benefit both the United States
and Pakistan.
The following is a chart that indicates fiscal year 2000
funding for the programs covered by this account, as well as
the President's request for fiscal year 2001 and the Committee
recommendation:

[In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
Fiscal year President's Committee
Program 2000 request recommendation
----------------------------------------------------------------------------------------------------------------
Nonproliferation and Disarmament Fund..................... 15,000 15,000 15,000
Export control assistance................................. 14,530 14,000 14,100
IAEA contribution......................................... 43,000 47,000 47,000
CTBT Preparatory Commission............................... 14,000 21,500 21,500
KEDO...................................................... 35,000 55,000 35,000
Anti-terrorism assistance................................. 33,000 38,000 38,000
Center for Antiterrorism and Security Training............ ................ 30,000 ................
Terrorist Interdiction Program............................ 1,250 4,000 4,000
Demining.................................................. 40,000 40,000 40,000
Small Arms Destruction.................................... ................ 2,000 2,000
Science Centers........................................... (\1\) 45,000 25,000
Lockerbie trial costs..................................... ................ 41,240 ................
Minus advance appropriations.......................... ................ -6,000 ................
-----------------------------------------------------
New budget authority................................ 216,600 346,740 241,600
----------------------------------------------------------------------------------------------------------------
\1\ (Science Center program funded in the account ``Assistance for the Independent States of the Former Soviet
Union'' in fiscal year 2000).

nonproliferation and disarmament fund

The Committee supports the Administration's request and
recommends $15,000,000 for the Nonproliferation and Disarmament
Fund (NDF). The Committee strongly supports the core
nonproliferation activities of the NDF which are designed to
provide the Secretary of State with a flexible funding source
to respond to urgent, unanticipated nonproliferation activities
of immediate concern to the United States. Longer term
programmatic activities should be funded separately and
therefore are subject to the normal conditions for legislative
oversight and review.

kedo burden sharing

The Committee is recommending $35,000,000 for KEDO, rather
than $55,000,000 as requested by the Administration. The
Committee continues to strongly believe it is essential that
other nations share the financial burden in responding to the
North Korean nuclear threat. The United States stations
approximately 37,000 uniformed Americans in South Korea and
spends over $2,500,000,000 per year to ensure stability and
peace on the Korean peninsula. The Committee fully expects
other nations to do their share and help fund the heavy fuel
oil component of the Agreed Framework. This matter is also
addressed in section 572 of this Act.
The Committee is also concerned by reports that North Korea
does not have the personnel to effectively or safely operate a
nuclear reactor, or the infrastructure to deliver the
electricity to the North Korean people. Without progress in
these areas, North Korea will be incapable of using the light
water reactors as was intended in the Agreed Framework.
Therefore the Committee requests that the Department of State
report by January 15, 2001, on the progress North Korea is
making, if any, to build the infrastructure capable of
distributing electricity and train the personnel necessary to
operate two light water nuclear reactors.

Department of the Treasury

Debt Restructuring

Fiscal year 2000 level................................ $123,000,000
Fiscal year 2001 request.............................. 262,000,000
Committee recommendation.............................. 82,400,000

The Committee recommends $82,400,000 for debt restructuring
for fiscal year 2001. This is $40,600,000 below the amount
enacted in 2000, and $179,600,000 below the request. The
Committee supports the request for bilateral debt relief and
provides funding for that purpose. It also directs that
$13,000,000 be used to implement the Tropical Forest
Conservation Act of 1998, the same as the amount made available
in fiscal year 2000, but $24,000,000 less than the request for
that purpose.
The Committee recommendation gives the Secretary of the
Treasury flexibility to use the appropriations provided under
this heading, other than the $13,000,000 reserved for
implementation of the Tropical Forest Conservation Act, for
bilateral debt relief or as a United States contribution to
certain multilateral development banks that lack sufficient
resources to fund debt relief commitments made to heavily
indebted poor countries.

hipc trust fund

The vehicle for any such contributions to multilateral
development banks is expected to be a Heavily Indebted Poor
Country (HIPC) Trust Fund that was created and is administered
by the International Bank for Reconstruction and Development.
The HIPC Trust Fund accepts contributions from more developed
countries to help the Inter-American Development Bank, the
African Development Bank, the Central American Bank for
Economic Integration, and possibly other financial
institutions, to defray the cost of writing down unserviceable
debt owed by certain member countries.
The following table indicates the current financial status
of the HIPC Trust Fund:

[As of May 22, 2000, amounts in millions of U.S. dollars]
----------------------------------------------------------------------------------------------------------------
Contributions
received Pledges Total
----------------------------------------------------------------------------------------------------------------
Australia....................................................... 12 .............. 12
Austria......................................................... .............. 19 19
Belgium......................................................... 4 36 40
Canada.......................................................... 102 .............. 102
Denmark......................................................... 26 35 61
Finland......................................................... 15 11 26
France.......................................................... .............. 199 199
Germany......................................................... 24 219 243
Greece.......................................................... 1 9 10
Ireland......................................................... 15 4 19
Italy........................................................... .............. 162 162
Japan........................................................... 10 190 200
Luxembourg...................................................... 1 2 3
Netherlands..................................................... 131 38 169
New Zealand..................................................... 2 .............. 2
Norway.......................................................... 42 .............. 42
Portugal........................................................ 15 7 22
Spain........................................................... 15 113 128
Sweden.......................................................... 28 20 48
Switzerland..................................................... 30 30 60
United Kingdom.................................................. 36 280 316
United States................................................... .............. 600 600
-----------------------------------------------
Total....................................................... 509 1,974 2,483
----------------------------------------------------------------------------------------------------------------

The Committee supports the noble mission undertaken by vast
numbers of private citizens, civic organizations, and religious
leaders to forgive poor country debt during the jubilee
millennium year of 2000. It is the Committee's view, based on
more than a half century of experience in funding foreign
assistance, that the elaborate HIPC Initiative will be
extremely difficult to implement. Public and private vigilance
will be required to ensure that domestic budgetary savings
resulting from reduced sovereign debt payments under the HIPC
Initiative will, in fact, be used by poor country governments
solely for economic growth and social/health activities aimed
at poverty alleviation. The Committee has found itself unable
to obtain from official sources basic information about HIPC,
such as the amount of actual cash flow savings by participants.
Instances of questionable expenditures by initial HIPC
participants, such as Uganda's lease-purchase of an advanced
corporate jet aircraft for its president, have reinforced the
Committee's deliberate and cautious approach to funding for the
HIPC Trust Fund.

conditions on contributions to hipc trust fund

The Committee has included bill language prohibiting United
States contributions to the HIPC Trust Fund on behalf of any
country credibly reported to be a gross violator of
internationally recognized human rights or is engaged in a
civil or military conflict that undermines its ability to
fulfill the HIPC criteria regarding poverty alleviation.
The Committee also has recommend bill language that
conditions funding for the HIPC Trust Fund on Agreement that
new lending to HIPC participants by beneficiary multilateral
development banks be deferred for up to 30 months. It is the
Committee's intent that debt reduction under the enhanced HIPC
Initiative not be taken as a signal for renewed lending by
international financial institutions or export financing
agencies. In the short-term, these countries should take a
``time out'' from sovereign lending.

bolivia and mozambique

The Committee is familiar with the progress made by the two
countries named in bill language, Bolivia and Mozambique, and
supports their efforts to escape from the multilateral debt
trap and provide better economic and social opportunities for
their citizens. The large increase recommended for this account
is a vote of confidence in the leaders and people of Bolivia
and Mozambique, who have earned special consideration because
of the reforms they have undertaken with some success. Based on
information the Committee has received from the Department of
the Treasury, it is highly likely that all of the
appropriations provided for debt reduction will be needed for
Bolivia and Mozambique.

accountability and future support for the hipc initiative

The Committee again requests quarterly reports on
obligations made from this account, and on the purposes for
which the funds are obligated. During the first quarter of the
fiscal year, the Department of the Treasury should continue to
report to the Committee pursuant to the regular notification
procedures of the Committees on Appropriations on the intended
use of the funds provided in this account. Such report should
specify the countries that would receive debt restructuring
during fiscal year 2001. The Committee understands that credit
ratings can fluctuate during the year, thus resulting in a
change in the budget cost necessary to restructure debt. If the
cost of debt relief for the poorest countries is recalculated
upward, it will necessitate a decrease in the funds allocated
for concessional debt relief.
The Committee notes that section 502 of the recommended
bill prohibits the use of any AID funds for the purpose of
direct repayment of a foreign country's obligations to an
international financial institution. The Debt Restructuring
account is the sole source of funds for debt relief or debt
forgiveness in this bill.

International Affairs Technical Assistance

Fiscal year 2000 level................................ $1,500,000
Fiscal year 2001 request.............................. 7,000,000
Committee recommendation.............................. 2,000,000

The Committee recommends $2,000,000 under this heading for
international technical assistance by the Department of the
Treasury, an amount that is $5,000,000 less than the request
and $500,000 above last year's level.

United States Community Adjustment and Investment Program

Fiscal year 2000 level................................ $10,000,000
Fiscal year 2001 request.............................. 10,000,000
Committee recommendation.............................. ................

The Committee is not recommending additional appropriations
at this time for a domestic program for community investment
and adjustment within the United States.

TITLE III--MILITARY ASSISTANCE

Funds Appropriated to the President

International Military Education and Training

Fiscal year 2000 level................................ $50,000,000
Fiscal year 2001 request.............................. 55,000,000
Committee recommendation.............................. 52,500,000

The Committee recommends $52,500,000 for the International
Military Education and Training program, which represents an
increase of $2,500,000 above the fiscal year 2000 level but is
$2,500,000 below the requested level.

indonesia and guatemala

The Committee includes prior year bill language limiting
Indonesia and Guatemala to Expanded IMET only. Funding for
Indonesia is subject to notification.

expanded imet

The Committee strongly supports the continuation of
Expanded IMET (E-IMET) programs. In that regard, the Committee
notes that part of the success of the E-IMET programs is
dependent on appropriate equipment critical to the learning
process. For example, equipment that enhances simultaneous
translation capacity or remote or distance learning
teleconferencing could greatly advance the reach and efficiency
of E-IMET programs. Yet, there is no consideration within the
program budget for such needs. Consequently, the Committee
requests that the Administration make funds available within
the E-IMET program as needed to support equipment and other
infrastructure requirements of E-IMET programs.
The Committee is aware of a proposal by the Center for
Civil-Military Relations (CCMR) at the Naval Postgraduate
School for a peacebuilding curriculum that would provide the
expertise, problem-solving and management skills for a cadre of
peacebuilding experts who would plan for and conduct
peacekeeping and post-peacekeeping development operations. The
Committee urges the Department of Defense and the Department of
State to consider funding the costs of foreign students
attending CCMR for this purpose.

report on foreign military training

The Committee has continued a general provision (sec. 571)
requiring a detailed report on foreign military training. The
bill language requires the Secretary of Defense and the
Secretary of State to jointly provide to the Congress by March
1, 2001, a report on all overseas military training provided to
foreign military personnel under programs administered by the
Department of Defense and the Department of State during fiscal
years 2000 and 2001, including those proposed for fiscal year
2001. This report shall include, for each such military
training activity, the foreign policy justification and purpose
for the training activity, the cost of the training activity,
the number of foreign students trained and their units of
operation, and the location of the training. The report does
not cover training associated with military sales or training
for personnel from countries belonging to the North Atlantic
Treaty Organization. In addition, this report shall also
include, with respect to United States personnel, the
operational benefits to United States forces derived from each
such training activity and the United States military units
involved in each such training activity. This report may
include a classified annex if deemed necessary and appropriate.
However, the Committee emphasizes strongly that it expects this
report to be unclassified and believes that the classified
annex should be used only when necessary to protect
intelligence sources or methods.

school of the americas

While funds in this Act are not the primary funding source
for the School of the Americas, the Committee continues to
carefully review the activities of the School of the Americas
to make certain that grant IMET funds used to support students
at the School are being appropriately utilized to support
United States national security objectives and to improve the
professionalism of Latin American militaries. As a result, the
Committee includes prior year bill language which makes clear
the Committee's intent that the School not engage in any
inappropriate training activities. To support this objective,
the Committee withholds the obligation of IMET funds to support
training at the School of the Americas until the Secretary of
Defense certifies that the instruction and training provided by
the School of the Americas is fully consistent with training
and doctrine, particularly with respect to the observance of
human rights, provided by the Department of Defense to United
States military students at Department of Defense institutions
whose primary purpose is to train United States military
personnel. It is not the intent of the Committee that ``fully
consistent'' be interpreted as identical to U.S. training. The
Committee's concern is specifically with respect to human
rights training, in which case the Committee believes training
by the School of the Americas should be fully consistent with
the United States Government's statutory and executive order
obligations and limitations in this area. In addition, the bill
requires that the Secretary of Defense submit to the Committees
on Appropriations by January 15, 2001, a report detailing the
training activities of the School of the Americas and a general
assessment regarding the performance of its graduates during
1998 and 1999.
In order to provide an even higher level of assurance that
funds provided for the School of the Americas are used in a
manner that is in accordance with American values, a new
proviso is recommended that prohibits funding for the School of
the Americas until the Secretary of State, without delegation,
certifies that the instruction and training provided by the
School of the Americas is consistent with United States foreign
policy objectives and helps support the observance of human
rights in Latin America.

imet availability

The Committee has retained language from fiscal year 2000
which provides that, of the funds made available for IMET,
$1,000,000 may remain available until expended.

Foreign Military Financing Program

Fiscal year 2000 level................................ $3,420,000,000
Emergency supplemental funding.................... 1,375,000,000
Fiscal year 2001 request.............................. 3,538,200,000
Committee recommendation.............................. 3,510,000,000

The Committee recommends $3,510,000,000 in Foreign Military
Financing grants. This program level is $1,285,000,000 below
the fiscal year 2000 level and $28,200,000 below the
President's request. If emergency supplemental funding is
excluded from the calculation, the recommended level is
$90,000,000 above the fiscal year 2000 level. The funding level
assumes an increase above last year's level of $60,000,000 for
Israel, as requested by the President.

israel

The Committee recommends a total Foreign Military Financing
(FMF) Program of not to exceed $1,980,000,000 in grants for
Israel which shall be available within 30 days of enactment or
by October 31, 2000, whichever is later.
It is the Committee's view that while Israel's economy has
improved significantly in recent years, the security situation
in the Middle East may have worsened. Therefore, the Committee
is convinced the United States must make every effort to carry
out its long-standing policy of ensuring that Israel's
technological edge is maintained. As a result, the Committee
has provided an increase of $60,000,000 above the fiscal year
2000 level, as requested by the President. The Committee also
believes that a sustained military improvement program will be
required over the next ten years, at an annual rate of
approximately $60,000,000, to assist Israel in responding to
these emerging security challenges. However, with respect to
this recommended increase in military assistance, the Committee
must be very clear that it cannot commit future Congresses to
the future appropriation of funds. Therefore, future increases
in military assistance will require the annual review of the
Congress and will necessarily be based upon an assessment of
the security situation at the time.
The Committee also recommends that, to the extent that the
Government of Israel requests that FMF grant funds for Israel
be used for such purposes, and as agreed by Israel and the
United States, funds may be made available for advanced weapons
systems of which $520,000,000 shall be available for the
procurement in Israel of defense articles and defense services,
including research and development. This represents a
$15,000,000 increase over the fiscal year 2000 level and
reflects a recognition by the Committee of Israel's need for
similar annual increases over the next few years in order to
provide Israel with increased flexibility in meeting the
emerging security challenges in the Middle East.

phalcon

The Committee is very disturbed by reports that Israel is
preparing to provide China with an airborne radar system that
could threaten both the forces of democratic Taiwan and the
United States in the region surrounding the Taiwan Strait. The
Committee intends to revisit this issue as the appropriations
process moves forward.

jordan

The Committee strongly supports the Administration's
efforts to improve Jordanian security and therefore recommends
full funding of the President's request of $75,000,000 for
Jordan. Under the able leadership of the late King Hussein and
the new King Abdullah, Jordan plays a critical role in
supporting peace and security in the Middle East. The Committee
is well aware that Jordan's security requirements are
extensive, particularly in the areas of ground force
modernization and border security.

egypt

The Committee recommends a total of not to exceed
$1,300,000,000 in Foreign Military Financing grants for Egypt.
Pursuant to the President's budget request bill language is
recommended that would require that funds estimated to be
outlayed for Egypt during fiscal year 2001 shall be disbursed
within 30 days of enactment of this Act or by October 31, 2000,
whichever is later. The Committee fully appreciates Egypt's
strategic location, its immediate proximity to Libya and Sudan
both of which have supported international terrorism; its
critical contribution during the Gulf War in resisting Iraqi
aggression; and its essential role in the Middle East peace
process. The Committee is convinced that continued military
cooperation between Egypt and the United States remains in the
national security interests of both countries. Neverthless, the
Committee is concerned about ongoing violence experienced by
the Christian minority in Egypt. The Committee urges Egypt to
expedite the investigations of the murders of 2000 and 1998 in
Al-Kosheh, and of the 1998 interrogations.

the baltics

The Committee supports continued provision of sufficient
assistance through this account and through ``International
Military Education and Training'' for Estonia, Latvia, and
Lithuania. Previous years' funding has significantly supported
the commendable efforts of these countries to attain Western
military standards and to improve their capacities to
contribute to international security through the provision of
peacekeepers to international peacekeeping missions. The
Committee urges continued support for the Baltic states at
least at the fiscal year 2000 level.

partnership for peace nations

The Committee strongly supports funding for the Partnership
for Peace (PFP) program, and intends that most of the non-Camp
David increase of $30,000,000 provided in this account should
be allocated for PFP and for the North Atlantic Treaty
Organization (NATO) accession countries, as well as for
programs in Africa.

partnership for peace notification

The Committee continues prior year language which requires
that no FMF grant assistance shall be available for any non-
NATO country participating in the Partnership for Peace program
except through the regular notification procedures of the
Committees on Appropriations.

administrative expenses

The Committee has recommended a limitation on
administrative expenses of $30,495,000. This is $2,505,000 less
than the level requested by the President and the same as the
fiscal year 2000 level. If additional resources become
available as the appropriations process continues, the
Committee will revisit this issue.

foreign military financing surcharge

The Committee has included a limitation on Foreign Military
Financing operating costs of $340,000,000. This limitation may
be waived pursuant to the regular notification procedures of
the Committees on Appropriations. This is $10,000,000 more than
the fiscal year 2000 level and $5,000,000 more than the
request, but reflects updated estimates of operating costs for
the coming fiscal year.

fmf expenditure rate

The Committee continues prior year language that requires
that Foreign Military Financing funds be expended at the
minimum rate necessary to make timely payments for defense
articles and services. In addition, it continues language
providing that such funds shall be obligated upon apportionment
in order to allow for the orderly execution of program funds.

procurement agreements

The Committee has continued prior year language requiring
recipients of Foreign Military Financing grants to sign
agreements with the United States prior to using FMF funds to
finance the procurement of any item not sold by the United
States under the Arms Export Control Act.

prohibitions

The Committee has included bill language prohibiting
military assistance to Sudan and Liberia. The Administration
did not request military assistance for Sudan or Liberia for
fiscal year 2001. However, the Committee is concerned that
funds requested under the Africa Regional Stability program,
which the Committee supports, could be made available for these
countries. Therefore, the Committee expects that the report
required by section 653(a) of the Foreign Assistance Act will
specify the countries which would receive allocations under the
Africa Regional Stability program funded from this account.
Although the Committee notes the continued implementation
of the Guatemalan peace agreement, the Committee believes it is
premature to remove the prohibition on military assistance for
Guatemala in fiscal year 2001.

Peacekeeping Operations

Fiscal year 2000 level................................ $153,000,000
Fiscal year 2001 request.............................. 134,000,000
Committee recommendation.............................. 117,900,000

The Committee recommends $117,900,000 for voluntary
contributions for international peacekeeping operations. This
amount is $35,100,000 below the level provided in fiscal year
2000, and is $16,100,000 below the President's request.

TITLE IV--MULTILATERAL ECONOMIC ASSISTANCE

International Financial Institutions

Contribution to the Global Environment Facility

Fiscal year 2000 level................................ $35,800,000
Fiscal year 2001 request.............................. 175,567,000
Committee recommendation.............................. 35,800,000

The Committee recommends $35,800,000 for the Global
Environment Facility (GEF), administered by the World Bank. The
recommendation is $139,767,000 below the request and the same
as the amount enacted for 2000.
In arriving at its recommendation, the Committee notes that
concerns about the GEF serving as a ``back door'' means of
securing developing country participation in the Kyoto Protocol
to the Framework Convention on Climate Change appear to be
unfounded. GEF predates the Kyoto Protocol by 6 years, and more
than two-thirds of GEF projects support cross-border activities
in the areas of biodiversity, clean water, and ozone layer
protection. Almost all of its ``climate change'' program
supports energy efficiency and clean energy projects.

Contribution to the International Development Association

Fiscal year 2000 level................................ $775,000,000
Fiscal year 2001 request.............................. 835,570,000
Committee recommendation.............................. 576,600,000

The Committee is providing $576,600,000 for an additional
U.S. contribution to the Twelfth Replenishment of the
International Development Association (IDA), a reduction of
$198,400,000 below the 2000 enacted level. This is $258,970,000
less than the amount requested by the Administration.
In order to protect heavily indebted poor countries (HIPC)
from falling back into the debt trap and to reduce the demand
for additional appropriations requests for multilateral debt
relief, the Committee has included language withholding from
immediate obligation part of the appropriation for IDA. Release
of these withheld funds is linked to IDA-12 making substantial
resources available for grants in lieu of loans to countries
that meet the HIPC scheme criteria for debt reduction based on
economic and social development strategies.
The Committee directs the Secretary of the Treasury to
vigorously advocate that the upcoming pledging session for IDA
provide all-grant assistance to each HIPC debt forgiveness
beneficiary for a period of 3 years following its HIPC decision
point. With respect to its support for multilateral debt
forgiveness under certain conditions and conversion of IDA to
an agency making poverty alleviation grants, the Committee
concurs with the March, 2000 recommendations of the
International Financial Institution Advisory Commission (the
Meltzer Commission).

ida and iran

Recently the World Bank resumed lending to Iran, ignoring
the opposition of the United States and Iran's support for
terrorist groups in the Middle East. Because of the budgetary
situation and the Bank's decision to resume lending to Iran,
the Committee is unable to provide the full amount requested
for IDA-12.

Contribution to the Multilateral Investment Guarantee Agency

Fiscal year 2000 level................................ $4,000,000
Fiscal year 2001 request.............................. 16,000,000
Committee recommendation.............................. 4,900,000

The Committee is providing $4,900,000 for an additional
U.S. payment to the World Bank's Multilateral Investment
Guarantee Agency, an increase of $900,000 above the 2000
enacted level. This is $11,100,000 less than the amount
requested by the Administration.

General Concerns About the World Bank Group

private sector strategy

The Committee again commends the IDA-12 Deputies for
recognizing the critical role undertaken by the private sector
in developing countries. The entire World Bank Group should
have a complementary and not competitive role with private
sector investment in developing countries. The Committee urges
the Secretary of the Treasury to work with the World Bank Group
to develop a private sector strategy that is consistent with
its commitment to sustainable economic growth, including a
social and environmental investment screen for World Bank Group
lending that supports the private sector.

Montenegro

The Committee is aware that, as a part of the Federal
Republic of Yugoslavia, the Republic of Montenegro currently is
unable to access World Bank financing. The World Bank's charter
prohibits use of its regular resources for the benefit of non-
members. However, in cases that its Board determines to be
exceptional (e.g. Kosovo, West Bank/Gaza), the Bank can provide
grants from its net income, administer and coordinate bilateral
resources, and provide technical assistance. The Committee
believes Montenegro is an exceptional case and should be deemed
so by the World Bank Board. The current government in
Montenegro is committed to a democratic, multi-ethnic society
and should not be penalized due to the actions of the federal
government in Belgrade. The Committee strongly urges the
Department of the Treasury and the United States Executive
Director at the World Bank to take all steps necessary to
persuade the Bank to provide grant aid and technical assistance
to the Republic of Montenegro.

environment and energy

The Committee continues to be disappointed that overall the
World Bank Group has failed to shift its lending portfolios
toward environmentally sustainable economic development. AID
data show a decrease in lending for environmental projects
since 1994, while projects with potentially irreversible
environmental impacts continue to dominate the portfolio.
The Committee recommends that the Bank expand its current
negative investment list to include projects that cause
potentially irreversible harm to the environment as defined by
internationally recognized standards, such as projects using
persistent organic pollutants (POP). The exclusion list
maintained by the Overseas Private Investment Corporation could
be used as a model. The Committee directs the Secretary of the
Treasury to work with the World Bank on expansion of its
``negative list'' and to report to the Committee on progress
made on this matter not later than March 1, 2001.
The Committee is aware that there is ample private
financing for the energy sector in most developing countries,
although inappropriate forms of public control have acted as a
significant investment barrier in some. It is also aware that
over the past 25 years, energy remains a valuable resource but
is no longer scarce. Central Asia and Africa are now recognized
as important future alternatives to dependence on Middle East
fossil fuel energy, and wind power is becoming commercially
viable in some regions. The Committee no longer anticipates a
global energy shortage in the foreseeable future. However,
where affordable and cleaner energy is not available, job
growth, poverty alleviation, and health improvement all come to
an abrupt halt and often decline.
As the primary justification for using public money in the
energy and extractive sectors is to underpin economic
development with sound policy, both technical assistance
through AID and financial participation by the multilateral
banks must focus on putting into place new policies, laws, and
regulations that would otherwise not occur. These serve to
insure that the income from valuable natural resources benefits
the population at large, not just a few officials at the
receiving end of the transaction. The involvement of AID, OPIC
or the World Bank can provide support for the efforts of United
States companies that seek to protect the environment and
corporate reputations in their dealings with foreign leaders
who demonstrate minimal concern for the welfare of their own
citizens or good governance.

education

The Committee commends the World Bank for its renewed
commitment to education lending, as articulated at the World
Education Forum in Senegal. The World Bank's efforts to help
developing countries attain the goal of universal, free basic
education by 2015 will be critical if these countries are to
meet this objective. The Committee directs the Secretary of the
Treasury to report to the Committee not later than March 15,
2001, on the progress of the World Bank's education sector
programs.

environmental and social assessment of structural adjustment programs

The Committee notes that more than three-eighths of the
World Bank's portfolio supports structural adjustment. This
type of lending is exempt from the environmental assessment
guidelines that cover individual projects. An internal World
Bank study concluded that the Bank rarely considers the
environmental and social impacts of these loans when they are
in the design process. The Committee directs the Secretary of
the Treasury and the U.S. Executive Director at the World Bank
to work with management to institute a dynamic, participatory
process to assess the environmental and social impacts of
structural adjustment loans, and to report to the Committee on
progress toward this goal not later than June 15, 2001.

the global AIDS epidemic

The Committee commends the World Bank for increasing its
attention to the world AIDS epidemic. The Committee requests
that the Secretary of the Treasury provide the Committee with a
brief, written update by February 1, 2001, on the World Bank
Group's global AIDS activities. The update should focus on how
the Bank is measuring the success of its programs relative to
the five year goals on prevention and care promulgated by the
UNAIDS program.

environmental and social safeguard policies

Although the World Bank has instituted social and
environmental safeguard policies on issues including indigenous
peoples, involuntary resettlement, and information disclosure,
the Committee notes that implementation has not been
consistent. The Bank's approval of the China Western Poverty
Reduction Project in June, 1999, indicates that the institution
continues to face a gap between policy and practice. The
Committee directs the Secretary of the Treasury and the U.S.
Executive Director at the World Bank to work with the Bank
management to create an incentives framework to ensure that
these policies are implemented in a consistent manner
throughout the Bank.
The Committee is aware that the Executive Board of the
World Bank recently approved a Chad-Cameroon petroleum project,
a public-private partnership which is expected to help the
people of Chad by increasing annual revenues for Chad by up to
50 percent. The Committee expects the World Bank to provide
fair compensation, both for lost income and lost property, to
families who may be displaced when oil production begins. In
order to promote full implementation of the exceptional
environmental and social safeguards associated with this
project, the Committee recommends that the World Bank establish
an independent evaluation panel, including a balanced cross-
section of affected, indigenous organizations in Chad and
Cameroon and the public/private partners in the project. The
evaluation panel would allow for ongoing, informal and
unimpeded public consultation on the costs and benefits
associated with the project.

inspection panel

The Committee continues its interest in the functioning of
the World Bank's Independent Inspection Panel. Future support
for the World Bank Group by the Committee may be linked to the
Inspection Panel's ability to function in an unimpeded and
effective manner.
The Committee urges World Bank management to publicly
disclose the Inspection Panel's findings on its investigation
of the China Western Poverty Reduction Project in advance of
action by the Executive Board to proceed with implementation of
the project.

Inter-American Development Bank Group

The Committee notes that for the first time in many years
there is no request for additional purchases of ordinary or
callable capital stock of the Inter-American Development Bank.
For the second year, there is no request for the Bank's
concessional window, the Fund for Special Operations, which is
now self-sustaining as a result of repayments of prior year
loans. Nonetheless, the Inter-American Development Bank expects
to benefit from appropriations provided under the heading
``Debt Restructuring'' in title II for the purpose of repaying
unsustainable loans previously incurred by heavily indebted
poor countries in the region.

Inter-American Investment Corporation

Fiscal year 2000 level................................ $16,000,000
Fiscal year 2001 request.............................. 34,000,000
Committee recommendation.............................. 8,000,000

The Committee recommends an appropriation of $8,000,000 of
the scheduled annual United States purchase of share capital of
the Inter-American Investment Corporation. The recommendation
is $26,000,000 less than the request and $8,000,000 less than
the 2000 enacted level. Because of budgetary constraints, the
Committee is unable to provide funds for purchases of equity
capital that are past due.
For the past 10 years, the Inter-American Investment
Corporation has supported small and medium private enterprises
in Latin America and the Caribbean through strategic equity
investments and loans. The small and medium enterprise sector
is the major source of new jobs and economic growth in the
region, but is generally overlooked by multilateral banks that
focus on the public sector and bilateral donor agencies that
focus on microenterprise credit. The current policy of limiting
loans and equity investments to companies owned by Latin
American and Caribbean entrepreneurs is under review. The
Committee commends the Corporation for its efforts to promote
investment in the Caribbean region.

Multilateral Investment Fund

Fiscal year 2000 level................................ ................
Fiscal year 2001 request.............................. $25,900,000
Committee recommendation.............................. 10,000,000

The Committee recommends an appropriation of $10,000,000
for the Multilateral Investment Fund, a level that is
$15,900,000 less than the request. An additional $10,000,000
from the United States will release a substantial part of the
$140,000,000 already made available by other member countries.

Asian Development Bank Group

There is no request in the 2001 budget for paid-in or
callable capital stock of the Asian Development Bank.

Contribution to the Asian Development Fund

Fiscal year 2000 level................................ $77,000,000
Fiscal year 2001 request.............................. 125,000,000
Committee recommendation.............................. 72,000,000

The Committee recommends an appropriation of $72,000,000
for the concessional Asian Development Fund, an amount that is
$5,000,000 below the amount provided in fiscal year 2000 and
$53,000,000 less than the amount requested.

African Development Bank

Fiscal year 2000 level................................ $4,100,000
Fiscal year 2001 request.............................. 6,100,000
Committee recommendation.............................. 3,100,000

The Committee recommends an appropriation of $3,100,000 for
the African Development Bank, an amount that is $1,000,000
below the amount provided in fiscal year 2000 and $3,000,000
below the amount requested for fiscal year 2001.

(Limitation on callable capital)

Fiscal year 2000 level................................ ($64,000,000)
Fiscal year 2001 request.............................. (95,983,000)
Committee recommendation.............................. (49,574,000)

The African Development Bank expects to benefit from
appropriations provided under the heading ``Debt
Restructuring'' in title II for the purpose of repaying
unsustainable loans previously incurred by heavily indebted
poor countries in the region.

Contribution to the African Development Fund

Fiscal year 2000 level................................ $128,000,000
Fiscal year 2000 request.............................. 100,000,000
Committee recommendation.............................. 72,000,000

The recommendation for the soft loan African Development
Fund is $72,000,000, $56,000,000 below the amount provided in
fiscal year 2000, and $28,000,000 less than the amount
requested.

Contribution to the European Bank for Reconstruction and Development

paid-in capital

Fiscal year 2000 level................................ $35,778,717
Fiscal year 2001 request.............................. 35,778,717
Committee recommendation.............................. 35,778,717

(Limitation on callable capital)

Fiscal year 2000 level................................ ($123,237,803)
Fiscal year 2001 request.............................. (123,237,803)
Committee recommendation.............................. (123,237,803)

The Committee is recommending $35,778,717 for the European
Bank for Reconstruction and Development. This amount is
identical to the appropriation provided in fiscal year 2000 and
the same as the President's request.

Contribution to the International Fund for Agricultural Development

Fiscal year 2000 level................................ ($5,000,000)
Fiscal year 2001 request.............................. (5,000,000)
Committee recommendation.............................. 5,000,000

The Committee is restoring a separate appropriation for the
International Fund for Agricultural Development, reflecting the
assumption of responsibility for this multilateral institution
by the Department of the Treasury in February, 2000. The fiscal
year 2001 recommendation is $5,000,000, the same as the request
and the amount provided in 2000, equally divided between the
``Development Assistance'' and ``International Organizations
and Programs'' accounts.

International Organizations and Programs

Fiscal year 2000 level................................ $183,000,000
Fiscal year 2001 request (under fiscal year 2000 199,000,000
account structure)...................................
Committee recommendation.............................. 183,000,000

The Committee has recommended $183,000,000 for
International Organizations and Programs. This is the same as
the fiscal year 2000 level. As in fiscal year 2000, the
Committee recommends $110,000,000 for a grant to UNICEF in the
``Child Survival and Disease Programs Fund'' under title II.
Further, the Committee is recommending funding for the Global
Alliance for Vaccines and Immunizations (GAVI) in the ``Child
Survival and Disease Programs Fund'' account as well.
Therefore, on a comparable basis, the recommendation is
$16,000,000 below the President's request.
The Committee recommendation also continues prior year bill
language prohibiting the use of funds for the Korean Peninsula
Energy Development Organization (KEDO) or the International
Atomic Energy Agency (IAEA). Both organizations are funded
under ``Nonproliferation, Anti-Terrorism, Demining and Related
Programs''.
The Committee requires the Department of State to report
back to the Committee within 90 days and submit all United
Nations Fund For Population Activities (UNFPA) agreements that
have been signed with local, provincial and national
governments of China relating to administration of UNFPA
programs in China.

united nations development program

The Committee supports efforts by the new administrator of
the United Nations Development Program (UNDP) to reform and
focus the institution on a limited number of achievable goals,
principally on improving governance in poor and developing
countries. The Committee's recommendation supports the budget
request of $90,000,000 for UNDP.

international conservation programs

The Committee supports continued U.S. contributions to the
World Conservation Union (IUCN) and the important programs that
IUCN assists in implementing. As the world becomes more focused
on protecting its environment, IUCN plays a critical role in
developing conservation initiatives and facilitating the
protection of the environment without compromising expansion of
economies. The Committee recommends that the State Department
increase its support for IUCN within the International
Conservation Programs account.

united nations voluntary fund for victims of torture

The Committee supports not less than $3,000,000 for the
U.S. contribution to the UN Voluntary Fund for Victims of
Torture. Assisting these centers not only reinforces U.S.
opposition to human rights violations but has proven to be an
effective method for lessening the incidence of torture and
promotes human rights and democracy abroad.

TITLE V--GENERAL PROVISIONS

The Committee recommends that several of the general
provisions carried in the fiscal year 2000 act be deleted.
These provisions are either addressed elsewhere in permanent
law, have been considered by the appropriate authorizing
committee, or are no longer necessary.
The Committee recommends the following new and revised
general provisions.
Sec. 508, ``Military Coups'' is modified to specify that
funds shall be prohibited for any country whose duly elected
head of government is deposed by decree or military coup; prior
year language could have been read to apply only to situations
in which a military coup or military decree resulted in a
leader being deposed.
Sec. 510, ``Deobligation/Reobligation Authority'' is
modified by removing subsection (a), which would have allowed
the deobligation and reobligation of funds appropriated to
carry out the Foreign Assistance Act of 1961; this provision is
no longer used. Subsection (b), regarding funds appropriated to
carry out the Arms Export Control Act, would be retained.
Sec. 511, ``Availability of Funds'' is modified to add
funds appropriated to carry out chapter 12 of part I of the
Foreign Assistance Act to the list of funds that may remain
available until expended if obligated before the expiration of
their periods of availability, and to nullify the final proviso
of title VI of the fiscal year 2000 appropriations act.
Sec. 517, ``Independent States of the Former Soviet Union''
is modified by deleting subsection (b), and by modifying the
notification requirement with regard to independent states
other than Russia and Ukraine.
Sec. 520, ``Special Notification Requirements'' is modified
to delete Pakistan and Panama and add Eritrea, Ethiopia, and
Zimbabwe.
Sec. 522, ``Child Survival and Disease Prevention
Activities'' is modified by deleting the final proviso that
would have allowed funds made available for family planning
activities to be made available notwithstanding section 512 of
this Act and section 620(q) of the Foreign Assistance Act.
Sec. 526, ``Democracy in China'' is modified by adding
language to allow for grants to be made to the National
Endowment for Democracy (NED) in a manner consistent with
section 503(a) of the National Endowment for Democracy Act and
certain Comptroller General decisions; to allow NED to be
deemed the ``awarding agency'' for purposes of implementing OMB
Circular A-122; to allow up to $1,000,000 for support of
nongovernmental organizations located outside China to support
activities which preserve cultural traditions and promote
sustainable development and environmental conservation in
Tibetan communities in that country; and to modify language
from the fiscal year 2000 Act to allow for a grant to the
Jamestown Foundation.
Sec. 527, ``Prohibition on Bilateral Assistance to
Terrorist Countries'' is modified by deleting a provision that
would have waived all other provisions of law.
Sec. 528, ``Report on Implementation of Supplemental
Appropriations'' is a new general provision requiring four
quarterly reports from the Secretary of State on the use of
funds appropriated under title VI of the Foreign Operations,
Export Financing, and Related Programs Appropriations Act,
2000.
Sec. 530, ``Stingers in the Persian Gulf Region'' is
modified to allow the United States to sell or make available
Stingers to any country bordering the Persian Gulf in order to
replace, on a one-for-one basis, Stingers previously furnished
to such a country, provided that the Stingers to be replaced
are nearing the scheduled expiration of their shelf-life.
Sec. 538, ``Special Authorities'' is modified to remove the
references to Romania and Kosovo, which are no longer
necessary, and to extend the authority of chapter 4 of part II
of the Foreign Assistance Act to subsection (b).
Sec. 539, ``Policy on Terminating the Arab League Boycott
of Israel and Normalizing Relations with Israel'' is modified
by changing the title; by adding language noting that only
three Arab League nations have full diplomatic relations with
Israel; by adding language asking the President to urge Arab
countries to normalize their relations with Israel; and
requiring an annual report to Congress on the specific steps
being taken by the United States and the progress achieved to
end the Arab League boycott of Israel and to expand the process
of normalizing ties between Arab League countries and Israel.
Sec. 540, ``Administration of Justice Activities'' is
modified by changing the heading from ``Anti-Narcotics
Activities''.
Sec. 541, ``Eligibility for Assistance'' is modified to add
funds appropriated to carry out chapter 12 of part I of the
Foreign Assistance Act to the list of funds that may be used to
provide assistance to nongovernmental organizations
notwithstanding other restrictions on assistance to a country.
Sec. 553, ``Landmines'' is modified by deleting a proviso
that changed permanent law.
Sec. 558, ``Limitation on Assistance for Haiti'' is
modified by conditioning assistance to the Government of Haiti
on the holding of free and fair elections and full cooperation
with United States efforts to halt the transshipment of illicit
drugs through Haiti to the United States.
Sec. 561, ``Haiti'' is modified by deleting the Haitian
National Police from the organizations in Haiti that are
eligible to purchase defense articles and services.
Sec. 568, ``Assistance for the Middle East'' is modified by
reducing the cap on Middle East spending from $5,321,150,000 to
$5,221,150,000.
Sec. 572, ``Korean Peninsula Energy Development
Organization'' is modified by limiting funds for KEDO to
$35,000,000 with one rather than two branches of funding, and
providing certification requirements similar to those included
in the fiscal year 2000 act.
Sec. 575, ``Iraq Opposition'' is modified by authorizing
rather than mandating up to $8,000,000 for Iraqi democratic
opposition groups and up to $2,000,000 for groups and
activities seeking to prosecute Saddam Hussein and other Iraqi
officials for war crimes; in addition, no funds may be made
available for administrative expenses of the Department of
State.
Sec. 576, ``Agency for International Development Budget
Justification'', is modified to clarify terms and establish a
linkage with section 515 of the Act.
Sec. 579, ``Indonesia'' is modified by conforming the
restriction on ``International Military Education and
Training'' with the limitation on Indonesia included under that
heading and by updating subsection (4) to reflect the
termination of UNTERFET.
Sec. 580, ``Man and the Biosphere'' is modified by removing
the limitation on programs in the United States.
Sec. 582, ``Restriction on United States Assistance for
Certain Reconstruction Efforts in Central Europe'' is modified
by applying the provision on the procurement of United States
origin articles and services to all of Eastern Europe, rather
than just southeast Europe, and removing the subsection on
definitions.
Sec. 583, ``Restrictions on Assistance to Governments
Destabilizing Sierra Leone'' is a new provision regarding the
prohibition of funds to governments engaged in certain
activities involving rebels in Sierra Leone.
Sec. 584, ``Voluntary Separation Incentives'' amends
existing law to provide additional authority for the Agency for
International Development to extend voluntary separation
incentives to certain employees.
Sec. 585, ``Working Capital Fund'', is a new provision that
allows the Agency for International Development to establish a
working capital fund.
Sec. 588, ``American Churchwomen in El Salvador'', is
modified to delete the reporting requirement.
Sec. 589, ``HIPC Trust Fund Conditions'', is a new section
that provides that beginning in fiscal year 2002, funds shall
be appropriated for the HIPC Initiative only under certain
specified conditions.
Sec. 590 is a new general provision providing that none of
the funds made available in this Act may be used to pay for the
performance of abortion or to lobby for or against abortion.
Sec. 591, ``Procurement and Financial Management Reform'',
is a new section that withholds funds from international
financial institutions until the Secretary of the Treasury
certifies that the institution is implementing certain anti-
corruption measures.

provisions retained from fiscal year 2000

The following general provisions from the fiscal year 2000
Act are retained in the fiscal year 2001 Act unchanged except
for technical corrections, references to fiscal year 2001, and
new section numbers where appropriate:
Sec. 501. Obligations During Last Month of Availability.
Sec. 502. Prohibition of Bilateral Funding for
International Financial Institutions.
Sec. 503. Limitation on Residence Expenses.
Sec. 504. Limitation on Expenses.
Sec. 505. Limitation on Representational Allowances.
Sec. 506. Prohibition on Financing Nuclear Goods.
Sec. 507. Prohibition Against Direct Funding of Certain
Countries.
Sec. 509. Transfers Between Accounts.
Sec. 512. Limitation on Assistance to Countries in Default.
Sec. 513. Commerce and Trade.
Sec. 514. Surplus Commodities.
Sec. 515. Notification Requirements.
Sec. 516. Limitation on Availability of Funds for
International Organizations and Programs.
Sec. 518. Prohibition on Funding for Abortions and
Involuntary Sterilization.
Sec. 519. Export Financing Transfer Authorities.
Sec. 521. Definition of Program, Project, and Activity.
Sec. 523. Prohibition Against Indirect Funding to Certain
Countries.
Sec. 524. Notification on Excess Defense Equipment.
Sec. 525. Authorization Requirement.
Sec. 529. Competitive Insurance.
Sec. 531. Debt-for-Development.
Sec. 532. Separate Accounts.
Sec. 533. Compensation for U.S. Executive Directors to
International Financial Institutions.
Sec. 534. Compliance with United Nations Sanctions against
Iraq.
Sec. 535. Authorities for the Peace Corps, The Inter-
American Foundation and the African Development Foundation.
Sec. 536. Impact on Jobs in the United States.
Sec. 537. Funding Prohibition for Serbia.
Sec. 542. Earmarks.
Sec. 543. Ceilings and Earmarks.
Sec. 544. Prohibition on Publicity and Propaganda.
Sec. 545. Purchase of American-made Equipment and Products.
Sec. 546. Prohibition of Payments to United Nations
Members.
Sec. 547. Consulting Services.
Sec. 548. Private Voluntary Organizations--Documentation.
Sec. 549. Prohibition on Assistance to Foreign Countries
that Export Lethal Military Equipment to Countries Supporting
International Terrorism.
Sec. 550. Withholding of Assistance for Parking Fines Owed
by Foreign Countries.
Sec. 551. Limitation on Assistance for the PLO for the West
Bank and Gaza.
Sec. 552. War Crimes Tribunals Drawdown.
Sec. 554. Restrictions Concerning the Palestinian
Authority.
Sec. 555. Prohibition of Payment of Certain Expenses.
Sec. 556. Special Debt Relief for the Poorest.
Sec. 557. Authority to Engage in Debt Buybacks or Sales.
Sec. 559. Requirement for Disclosure of Foreign Aid in
Report of Secretary of State.
Sec. 560. Restrictions on Voluntary Contributions to United
Nations Agencies.
Sec. 562. Limitation on Assistance to the Palestinian
Authority.
Sec. 563. Limitation on Assistance to Security Forces.
Sec. 564. Restrictions on Assistance to Countries Providing
Sanctuary to Indicted War Criminals.
Sec. 565. To Prohibit Foreign Assistance to the Government
of the Russian Federation Should it Enact Laws Which Would
Discriminate Against Minority Religious Faiths in the Russian
Federation.
Sec. 566. Greenhouse Gas Emissions.
Sec. 567. Aid to the Government of the Democratic Republic
of the Congo.
Sec. 569. Enterprise Fund Restrictions.
Sec. 570. Cambodia.
Sec. 571. Foreign Military Financing Report.
Sec. 573. African Development Foundation.
Sec. 574. Prohibition on Assistance to the Palestinian
Broadcasting Corporation.
Sec. 577. Kyoto Protocol.
Sec. 578. West Bank and Gaza Program.
Sec. 581. Consultations on Arms Sales to Taiwan.
Sec. 586. Contributions to United Nations Population Fund.
Sec. 587. Authorization for Population Planning.

TITLE VI--MOZAMBIQUE, MADAGASCAR AND SOUTHERN AFRICA REHABILITATION AND
RECONSTRUCTION

Bilateral Economic Assistance

Funds Appropriated to the President

Agency for International Development

International Disaster Assistance

Fiscal year 2000 level................................ ................
Fiscal year 2000 emergency supplemental budget request $200,000,000
Committee recommendation.............................. 160,000,000

The Committee recommends $160,000,000 for emergency
supplemental appropriations for Mozambique, Madagascar, and
southern Africa rehabilitation and reconstruction in the
aftermath of cyclones Gloria, Eline, and Hudah. These funds are
provided for the ``International Disaster Assistance'' account.
The emergency supplemental budget request, transmitted to
Congress on April 21, 2000, totaled $200,000,000, to be
provided through the ``Economic Support Fund'', ``International
Disaster Assistance'' and AID ``Operating Expenses'' accounts.
All of these funds are made available only to the extent that
the President makes an official budget request that includes
designation of the entire amount as an emergency requirement.
In addition to these funds, the Committee has been made
aware that the overall United States Government commitment to
Mozambique, Madagascar, and the rest of the region so far
totals more than $40,000,000 and AID intends to reprogram
$32,000,000 in existing funds for regional rehabilitation and
reconstruction efforts. Therefore, including funds recommended
under this title, the United States response to these cyclones
is expected to total more than $232,000,000 as described below.

United States Support for Mozambique, Madagascar, and Southern Africa
Reconstruction and Rehabilitation

AID Office of Foreign Disaster Assistance............. $19,174,279
AID Existing Funds Reprogrammed....................... 32,000,000
Department of Defense................................. 21,000,000
Committee Emergency Supplemental recommendation....... 160,000,000
-----------------
Total............................................. 232,174,279

The Committee expects that the majority of funds will be
provided for Mozambique and Madagascar, which suffered the most
damage from these cyclones and the resultant flooding. The
Committee expects AID to provide funding to Mozambique,
Madagascar, and Botswana at the requested level. Funds for
other countries in the region and support for the Southern
Africa Development Community (SADC) are not the priority for
these supplemental funds. The Committee directs that no funds
be made available to the government of Zimbabwe. Further, the
Committee has included bill language prohibiting the use of
funds under this title for nonproject assistance. Also, to
ensure that projects can proceed without interruption, the
Committee allows up to $12,000,000 of the funds appropriated
under this title to be charged to obligations of previously
appropriated funds. The Committee provides that up to
$5,000,000 of the funds under this title may be used for
administrative purposes, and may be merged with AID's operating
expenses budget.
The Committee commends the efforts of the Agency for
International Development, the Department of Defense and the
Department of State for their immediate response to the
humanitarian crisis created by these cyclones. However, the
Committee is concerned about the United States Government's
ability to swiftly engage in longer-term rehabilitation efforts
in Mozambique, Madagascar and southern Africa. The Committee
notes that AID's reconstruction efforts in Central America have
progressed very slowly. In fact, the majority of emergency
supplemental funds appropriated in response to Hurricane Mitch
in Central America more than one year ago have not yet been
expended.
The Administrator of AID is directed to report in writing
to the Committees on Appropriations prior to the obligation of
any funds under this title. The report shall include a detailed
plan regarding a description of the projects and programs to be
carried out with these funds; the exact uses of administrative
expenses; and the Bureau within AID primarily responsible for
carrying out these projects. The Committee supports the
Administration's proposal that AID develop a detailed
implementation plan, which includes project milestones, against
which progress can be measured, and expects these milestones to
be included in AID's report to the Committee. AID is directed
to consult with the Committee at the earliest date regarding
the proposed uses of funds under this title.

House of Representatives Report Requirements

Transfer of Funds

Pursuant to clause 3(f)(2) of rule XIII of the Rules of the
House of Representatives, the following is submitted describing
the transfer of funds provided in the accompanying bill. There
are no transfers recommended in the accompanying bill.

Rescissions

Clause 3(f)(2) of rule XIII of the Rules of the House of
Representatives requires a separate listing of rescissions.
There are no rescissions recommended in the accompanying bill.

Constitutional Authority

Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives states that:

Each report of a committee on a bill or joint
resolution of a public character, shall include a
statement citing the specific powers granted to the
Congress in the Constitution to enact the law proposed
by the bill or joint resolution.

The Committee on Appropriations bases its authority to
report this legislation from Clause 7 of Section 9 of Article I
of the Constitution of the United States of America which
states:

No money shall be drawn from the Treasury but in
consequence of Appropriations made by law * * *

Appropriations contained in this Act are made pursuant to
this specific power granted by the Constitution.

Changes in the Application of Existing Law

Pursuant to clause 3(f), rule XIII of the Rules of the
House of Representatives, the following statements are
submitted describing the effects of provisions in the
accompanying bill which directly or indirectly change the
application of existing law. Most of the language has been
provided in previous measures including supplementals for the
departments and agencies carried in the accompanying bill.
1. The bill contains appropriations for a number of items
for which authorizations for fiscal year 2001 have not yet been
enacted. The bill allows funds appropriated in the bill to be
obligated in the absence of a prior authorization of
appropriations.
2. The bill provides that a few of the appropriations shall
remain available for obligation beyond the current fiscal year.
In all cases it is deemed desirable to carry such language in
order to provide for orderly administration of such programs
and effective use of funds.
3. The bill contains a number of general provisions and
other language which have been carried in the bill in past
years.
4. Under ``Export-Import Bank of the United States'', funds
are prohibited for the export of nuclear equipment, fuel, or
technology to any country other than a nuclear-weapon state as
defined in Article IX of the Treaty on the Non-Proliferation of
Nuclear Weapons eligible to receive economic or military
assistance that has detonated a nuclear explosive after the
date of enactment.
5. Under ``Overseas Private Investment Corporation'', the
Corporation is authorized to make expenditures, and it is
stated that administrative expenses shall not include project-
specific costs and other related costs. In addition, funds are
authorized to be derived by transfer from the noncredit
account. Finally, funds are authorized for administrative
expenses by transfer from the noncredit account.
6. Under ``Child Survival and Disease Programs Fund'' the
bill contains authorities for the use of the fund that were
contained in the fiscal year 2000 Act and are consistent with
the Foreign Assistance Act; in addition, funds may be made
available for nonproject assistance only for ongoing health
programs; in addition, language is provided that indicates how
the funds should be allocated among various activities, and up
to $37,500,000 is authorized to be made available for a
contribution to the Global Fund for Children's Vaccines; in
addition, $19,000,000 is designated as emergency funding.
7. Under ``Development Assistance'' the bill contains
provisions relating to abortion and family planning that were
carried in the fiscal year 2000 Act; in addition, up to
$10,000,000 may be made available for the Inter-American
Foundation and up to $16,000,000 may be made available for the
African Development Foundation, and funds are apportioned
directly to those organizations; in addition, no funds may be
made available for any activity which is in contravention to
the Convention on International Trade in Endangered Species of
Flora and Fauna (CITES); in addition, not to exceed $25,000, in
addition to funds otherwise available for such purposes, may be
used to monitor and provide oversight of programs for displaced
and orphaned children and victims of war; in addition, of funds
made available for the Microenterprise Initiative, not less
than one-half should be made available for programs providing
loans in the specified amounts (in 1995 United States dollars)
to very poor people, particularly women, or for institutional
support of organizations engaged in making such loans ($1,000
or less in the Europe and Eurasia region, including North
Africa; $400 or less in the Latin America region; and $300 or
less in the rest of the world).
8. Under ``Private and Voluntary Organizations'', the
Committee includes a provision that funds appropriated under
title II should be made available to PVOs at a level which is
at least equivalent to the level provided in fiscal year 1995.
It also continues provisions continued from last year on
minimum funds from private sources.
9. Under ``International Disaster Assistance'', funds are
made available for relief, rehabilitation and reconstruction
assistance; in addition, a new account entitled ``Transition
Initiatives'' is established with similar authorities,
including assistance to develop, strengthen, or preserve
democratic institutions and processes, revitalize basic
infrastructure, and foster the peaceful resolution of conflict;
in addition, the new account requires a report at least 5 days
prior to beginning a program of assistance.
10. Under ``Development Credit Programs'', authority is
provided to guarantee up to 70 percent of the principal amount
of any loans notwithstanding existing law; in addition, a
separate account ``Micro and Small Enterprise Development
Program Account'' is retained with the same authorities as the
fiscal year 2000 Act.
11. Under ``Economic Support Fund'', funds are available as
cash grants to Israel and Egypt. Funds for Israel are made
available within 30 days of enactment or by October 31, 2000,
whichever is later. In addition, the cash grant to Egypt is
provided with the understanding that significant economic
reforms will be undertaken, and the cash grant to Israel is
provided with direction to the President that he ensure that
the level of assistance does not cause an adverse impact on the
level of non-military exports from the United States to such
country and that Israel enter into a side letter agreement
equivalent to 1999.
12. Under ``Debt Restructuring'', funds are authorized for
purposes consistent with existing law, except that funds
appropriated for concessional debt relief are authorized for
``IDA-only'' countries; in addition, funds may be paid to the
``Heavily Indebted Poor Countries Trust Fund'' for the U.S.
share of repayment of debt owed by Bolivia and Mozambique; in
addition, any international financial institution in receipt of
such U.S. contributions is required to notify the Secretary of
the Treasury that no new loans or credits will be extended to
such member country for a period of up to 30 months; in
addition, the Secretary of the Treasury is required to provide
to the Committees on Appropriations full documentation relating
to commitments by such countries to redirect resources to
poverty alleviation or economic growth programs; and in
addition, any limitation of subsection (e) of section 411 of
the Agricultural Trade Development and Assistance Act of 1954
shall not apply to funds appropriated under this heading.
13. In title II, funds are appropriated for the
administrative costs of the Development Credit Program and the
Micro and Small Enterprise program, and such funds may be
transferred to the operating expenses account of the Agency for
International Development.
14. Under ``Assistance for Eastern Europe and the Baltic
States'', funds are made subject to section 532 of this Act.
15. Under ``International Fund for Ireland'', $25,000,000
is provided, which shall be expended at the minimum rate
necessary to make timely payment for projects and activities.
16. Under ``Assistance to Eastern Europe and the Baltic
States'', funds are provided notwithstanding any other
provision of law for economic assistance; funds are made
available as if they were considered economic assistance under
the Foreign Assistance Act; funds for Bosnia are subject to
certain conditions, including limitations on funds for housing.
Funds available for an Enterprise Fund are authorized to be
deposited in interest-bearing accounts, and shall be expended
at the minimum rate necessary to make timely payments for
projects and activities; in addition, assistance for Kosovo is
limited to 15% of the total pledges made by all donors as of
January 1, 2001; in addition, notwithstanding certain
provisions of law, local currencies generated by, or converted
from, funds appropriated by this Act and by previous
appropriations Acts for Bosnia may be made available for
purposes of the Foreign Assistance Act of 1961 and the Support
for East European Democracy (SEED) Act of 1989, subject to
notification.
17. Under ``Assistance for the Independent States of the
Former Soviet Union'', the Committee has included a limitation
on the amount of assistance that may be made available for any
one country in the region; it has also retained language
concerning cooperation between Russia and Iran; in addition,
exceptions are made to the application of section 907 of the
FREEDOM Support Act; funds for the Government of Russia are
subject to certain limitations; and certain authorities are
granted for the use of funds appropriated for Enterprise Funds
that were carried in the fiscal year 2000 Act; in addition, no
funds are available for the Government of the Russian
Federation if the Secretary of State cannot certify that they
are in compliance with the flank zone limitations of the Treaty
on Conventional Armed Forces in Europe.
18. Under ``International Narcotics Control and Law
Enforcement'', anti-crime programs are subject to notification.
19. Funding is provided for ``Migration and Refugee
Assistance'', and a limitation of $14,852,000 is provided for
administrative expenses.
20. Under ``United States Emergency Refugee and Migration
Assistance Fund'', funds are provided notwithstanding the
limitations contained in section 2(c)(2) of the Migration and
Refugee Assistance Act of 1962.
21. Under ``Nonproliferation, Anti-terrorism, Demining, and
Related Programs'', funds are made available to countries other
than the Independent States of the former Soviet Union and
international organizations when it is in the national security
interest of the United States; funds are made available
notwithstanding any other provision of law; and the use of
funds is made subject to the notification procedures of the
Committees on Appropriations; funds are authorized to be made
available for the IAEA, KEDO, and the CTBT Preparatory
Commission, and funds are authorized for IAEA only to the
extent Israel is not being denied its right to participate in
the activities of that Agency.
22. Under ``Debt Restructuring'', funds are available for
the cost of selling, reducing, or canceling debt owed to the
United States, for modifying concessional debt agreements with
least developed countries.
23. Under ``International Military Education and
Training'', the IMET for Indonesia and Guatemala shall be only
for expanded military education and training and funds for
Indonesia will be subject to notification; the language limits
obligation of funds for the School of the Americas pending
certifications by the Secretary of Defense and Secretary of
State; and requires a report on the School of the Americas.
24. Under ``Foreign Military Financing Program'', the
Committee has provided that not less than $520,000,000 in FMF
grants should be available for the procurement in Israel of
defense articles and defense services, and that FMF grants for
any non-NATO country participating in the Partnership for Peace
program shall be subject to the Committee's regular
notification procedures.
25. Under ``Foreign Military Financing Program'', funds
estimated to be outlayed for Egypt in fiscal year 2001, and
funds appropriated for Israel, shall be disbursed within 30
days of enactment or by October 31, 2000, whichever is later;
in addition, funds are nonrepayable notwithstanding section 23
of the Arms Export Control Act; in addition, certain
authorities that were contained in the fiscal year 2000 Act are
continued in this Act.
26. Under ``Peacekeeping Operations'', funds are made
available subject to the regular notification procedures of the
Committees on Appropriations.
27. Under title IV, funds for a number of international
financial institutions are made available for contributions;
funds are made available for the United States share of the
paid-in portion of the increase in capital stock of certain
institutions; and limitations are placed on callable capital
subscriptions.
28. Under ``Contribution to the European Bank for
Reconstruction and Development'', the Committee has provided
$35,778,717 for the purchase of stock during fiscal year 2001
and placed a limit on callable capital.
29. Under ``Contribution to the International Development
Association'', $10,000,000 is withheld from obligation until
the Secretary of the Treasury notifies the Committees on
Appropriations that agreement has been reached by the Executive
Board of the International Bank for Reconstruction and
Development that future assistance to member countries
participating in debt reduction through HIPC shall, to the
extent allowed by Bank policy and resources, be on a grant
basis.
30. Under ``International Organizations and Programs'', the
Committee has prohibited and conditioned the funding of certain
organizations and programs.
31. Under ``General Provisions'':
Sec. 508, ``Military Coups'' is modified to specify that
funds shall be prohibited for any country whose duly elected
head of government is deposed by decree or military coup; prior
year language could have been read to apply only to situations
in which a military coup or military decree resulted in a
leader being deposed.
Sec. 510, ``Deobligation/Reobligation Authority'' is
modified by removing subsection (a), which would have allowed
the deobligation and reobligation of funds appropriated to
carry out the Foreign Assistance Act of 1961; this provision is
no longer used. Subsection (b), regarding funds appropriated to
carry out the Arms Export Control Act, would be retained.
Sec. 511, ``Availability of Funds'' is modified to add
funds appropriated to carry out chapter 12 of part I of the
Foreign Assistance Act to the list of funds that may remain
available until expended if obligated before the expiration of
their periods of availability, and to nullify the final proviso
of title VI of the fiscal year 2000 Appropriations Act.
Sec. 517, ``Independent States of the Former Soviet Union''
is modified by deleting the proviso under subsection (b) which
provided the President with the authority to waive the
restriction of that subsection if it is in the national
security interest of the United States, and by modifying the
notification requirement with regard to independent states
other than Russia and Ukraine.
Sec. 520, ``Special Notification Requirements'' is modified
to delete Pakistan and Panama and add Eritrea, Ethiopia,
Zimbabwe.
Sec. 522, ``Child Survival and Disease Prevention
Activities'' is modified by deleting the final proviso that
would have allowed funds made available for family planning
activities to be made available notwithstanding section 512 of
this Act and section 620(q) of the Foreign Assistance Act.
Sec. 526, ``Democracy in China'' is modified by adding
language to allow for grants to be made to the National
Endowment for Democracy (NED) in a manner consistent with
section 503(a) of the National Endowment for Democracy Act and
certain Comptroller General decisions; to allow NED to be
deemed the ``awarding agency'' for purposes of implementing OMB
Circular A-122; to allow up to $1,000,000 for support of
nongovernmental organizations located outside China to support
activities which preserve cultural traditions and promote
sustainable development and environmental conservation in
Tibetan communities in that country; and to modify language
from the fiscal year 2000 Act to allow for a grant to the
Jamestown Foundation.
Sec. 527, ``Prohibition on Bilateral Assistance to
Terrorist Countries'' is modified by deleting a provision that
would have waived all other provisions of law.
Sec. 528, ``Report on Implementation of Supplemental
Appropriations'' is a new general provision requiring four
quarterly reports from the Secretary of State on the use of
funds appropriated under title VI of the Foreign Operations,
Export Financing, and Related Programs Appropriations Act,
2000.
Sec. 530, ``Stingers in the Persian Gulf Region'' is
modified to allow the United States to sell or make available
Stingers to any country bordering the Persian Gulf in order to
replace, on a one-for-one basis, Stingers previously furnished
to such a country, provided that the Stingers to be replaced
are nearing the scheduled expiration of their shelf-life.
Sec. 538, ``Special Authorities'' is modified to remove the
references to Romania and Kosovo, which are no longer
necessary, and to extend the authority of chapter 4 of part II
of the Foreign Assistance Act to subsection (b).
Sec. 539, ``Policy on Terminating the Arab League Boycott
of Israel and Normalizing Relations with Israel'' is modified
by changing the title; by adding language noting that only
three Arab League nations have full diplomatic relations with
Israel; by adding language asking the President to urge Arab
countries to normalize their relations with Israel; and
requiring an annual report to Congress on the specific steps
being taken by the United States and the progress achieved to
end the Arab League boycott of Israel and to expand the process
of normalizing ties between Arab League countries and Israel.
Sec. 540, ``Administration of Justice Activities'' is
modified by changing the heading from ``Anti-Narcotics
Activities''.
Sec. 541, ``Eligibility for Assistance'' is modified to add
funds appropriated to carry out chapter 12 of part I of the
Foreign Assistance Act to the list of funds that may be used to
provide assistance to nongovernmental organizations
notwithstanding other restrictions on assistance to a country.
Sec. 553, ``Landmines'' is modified by deleting a proviso
that changed permanent law.
Sec. 558, ``Limitation on Assistance for Haiti'' is
modified by conditioning assistance to the Government of Haiti
on the holding of free and fair elections and full cooperation
with United States efforts to halt the transshipment of illicit
drugs through Haiti to the United States.
Sec. 561, ``Haiti'' is modified by deleting the Haitian
National Police from the organizations in Haiti that are
eligible to purchase defense articles and services.
Sec. 568, ``Assistance for the Middle East'' is modified by
reducing the cap on Middle East spending from $5,321,150,000 to
$5,221,150,000.
Sec. 572, ``Korean Peninsula Energy Development
Organization'' is modified by limiting funds for KEDO to
$35,000,000 with one rather than two branches of funding, and
providing certification requirements similar to those included
in the fiscal year 2000 Act.
Sec. 575, ``Iraq Opposition'' is modified by authorizing
rather than mandating up to $8,000,000 for Iraqi democratic
opposition groups and up to $2,000,000 for groups and
activities seeking to prosecute Saddam Hussein and other Iraqi
officials for war crimes; in addition, no funds may be made
available for administrative expenses of the Department of
State.
Sec. 576, ``Agency for International Development Budget
Justification'', is modified to clarify terms and establish a
linkage with section 515 of the Act.
Sec. 579, ``Indonesia'' is modified by conforming the
restriction on ``International Military Education and
Training'' with the limitation on Indonesia included under that
heading and by updating subsection (4) to reflect the
termination of UNTERFET.
Sec. 580, ``Man and the Biosphere'' is modified by removing
the limitation on programs in the United States.
Sec. 582, ``Restriction on United States Assistance for
Certain Reconstruction Efforts in Central Europe'' is modified
by applying the provision on the procurement of United States
origin articles and services to all of Eastern Europe, rather
than just southeast Europe, and removing the subsection on
definitions.
Sec. 583, ``Restrictions on Assistance to Governments
Destabilizing Sierra Leone'' is a new provision regarding the
prohibition of funds to governments engaged in certain
activities involving rebels in Sierra Leone.
Sec. 584, ``Voluntary Separation Incentives'' amends
existing law to provide additional authority for the Agency for
International Development to extend voluntary separation
incentives to certain employees.
Sec. 585, ``Working Capital Fund'', is a new provision that
allows the Agency for International Development to establish a
working capital fund.
Sec. 588, ``American Churchwomen in El Salvador'', is
modified to delete the reporting requirements.
Sec. 589, ``HIPC Trust Fund Conditions'', provides that
beginning in fiscal year 2002, funds shall be appropriated for
the HIPC initiative only under certain specified conditions.
Sec. 590 is a new provision providing that none of the
funds made available in this Act may be used to pay for the
performance of abortion or to lobby for or against abortion.
Sec. 591, ``Procurement and Financial Management Reform'',
is a new provision that withholds funds from international
financial institutions until the Secretary of the Treasury
certifies that the institution is implementing certain anti-
corruption measures.

Appropriations Not Authorized by Law

Pursuant to clause 3(f) of rule XIII of the Rules of the
House of Representatives, the following table lists the
appropriations in the accompanying bill which, in whole or in
part, are not authorized by law:

Trade and Development Agency
Child Survival and Disease Programs Fund
Development Assistance
International Disaster Assistance
Transition Initiatives
Development Credit Programs
AID Operating Expenses
AID Operating Expenses, Office of Inspector General
Economic Support Fund
International Fund for Ireland
Assistance for Eastern Europe and the Baltic States
Assistance for the Independent States of the Former Soviet
Union
Inter-American Foundation
African Development Foundation
Peace Corps
International Narcotics Control and Law Enforcement
Migration and Refugee Assistance
Nonproliferation, Anti-Terrorism, Demining and Related Programs
Debt Restructuring (in part)
International Military Education and Training
Foreign Military Financing Program
Peacekeeping Operations
International Fund for Agricultural Development
International Organizations and Programs

Comparison With Budget Resolution

Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives requires an explanation of compliance with
section 308(a)(1)(A) of the Congressional Budget and
Impoundment Control Act of 1974 (Public Law 93-344), as
amended, which requires that the report accompanying a bill
providing new budget authority contain a statement detailing
how the authority compares with the reports submitted under
section 302 of the Act for the most recently agreed to
concurrent resolution on the budget for the fiscal year from
the Committee's section 302(a) allocation.

[In millions of dollars]
----------------------------------------------------------------------------------------------------------------
302(b) allocation-- This bill--
---------------------------------------------------------------
Budget Budget
authority Outlays authority Outlays
----------------------------------------------------------------------------------------------------------------
Discretionary................................... 13,281 7,980 13,281 14,974
Mandatory....................................... 44 44 44 44
----------------------------------------------------------------------------------------------------------------
Note.--The outlays in this bill are technically in excess of the subcommittee section 302(b) suballocation.
However, prior to floor consideration, the Committee intends to file a revised 302(b) suballocation that will
eliminate the excess.

Five-Year Outlay Projections

In compliance with section 308(a)(1)(B) of the
Congressional Budget and Impoundment Control Act of 1974
(Public Law 93-344), as amended, the following table contains
five-year projections associated with the budget authority
provided in the accompanying bill:

Fiscal year 2001...................................... 5,109
Fiscal year 2002...................................... 3,840
Fiscal year 2003...................................... 2,483
Fiscal year 2004...................................... 760
Fiscal year 2005...................................... 934

Assistance to State and Local Governments

In accordance with section 308(a)(1)(C) of the
Congressional Budget and Impoundment Control Act of 1974
(Public Law 93-344), as amended, the financing assistance to
State and local governments is as follows:
The amounts recommended in the accompanying bill contain no
budget authority or budget outlays for State or local
governments.

Compliance With Rule XIII, Cl. 3(e) (Ramseyer Rule)

In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):

SECTION 526 OF THE FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED
APPROPRIATIONS ACT, 2000

(PUBLIC LAW 106-113--APPENDIX B)

democracy in china

Sec. 526. Notwithstanding any other provision of law that
restricts assistance to foreign countries, funds appropriated
by this Act for ``Economic Support Fund'' may be made available
to provide general support and grants for nongovernmental
organizations located outside the People's Republic of China
that have as their primary purpose fostering democracy in that
country, and for activities of nongovernmental organizations
located outside the People's Republic of China to foster
democracy in that country: Provided, That none of the funds
made available for activities to foster democracy in the
People's Republic of China may be made available for assistance
to the government of that country, except that funds
appropriated by this Act under the heading ``Economic Support
Fund'' that are made available for the National Endowment for
Democracy or its grantees may be made available for activities
to foster democracy in that country notwithstanding this
proviso and any other provision of law: Provided further, That
funds made available pursuant to the authority of this section
shall be subject to the regular notification procedures of the
Committees on Appropriations: Provided further, That
notwithstanding any other provision of law that restricts
assistance to foreign countries, of the funds appropriated by
this Act under the heading ``Economic Support Fund'',
$1,000,000 shall be made available to the [Robert F. Kennedy
Memorial Center for Human Rights] Jamestown Foundation for a
project to disseminate information and support research about
the People's Republic of China, and related activities.

SECTION 579 OF THE FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED
PROGRAMS APPROPRIATIONS ACT, 2000

VOLUNTARY SEPARATION INCENTIVES FOR EMPLOYEES OF THE UNITED STATES
AGENCY FOR INTERNATIONAL DEVELOPMENT

Sec. 579. (a) * * *

* * * * * * *

(c) Authority To Provide Voluntary Separation Incentive
Payments.--
(1) * * *
(2) Amount and treatment of payments.--A voluntary
separation incentive payment under this section--
(A) * * *

* * * * * * *

(D) may not be made except in the case of any
employee who voluntarily separates (whether by
retirement or resignation) on or before
[December 31, 2000] December 31, 2001;

* * * * * * *

----------

SECTION 635 OF THE FOREIGN ASSISTANCE ACT OF 1961

Sec. 635. General Authorities.--(a) * * *

* * * * * * *

(l)(1) There is hereby established a working capital fund
for the United States Agency for International Development
which shall be available without fiscal year limitation for the
expenses of personal and nonpersonal services, equipment and
supplies for: (A) International Cooperative Administrative
Support Services; and (B) rebates from the use of United States
Government credit cards.
(2) The capital of the fund shall consist of the fair and
reasonable value of such supplies, equipment, and other assets
pertaining to the functions of the fund as the Administrator
determines, rebates from the use of United States Government
credit cards, and any appropriations made available for the
purpose of providing capital, less related liabilities.
(3) The fund shall be reimbursed or credited with advance
payments for services, equipment or supplies provided from the
fund from applicable appropriations and funds of the agency,
other Federal agencies and other sources authorized by section
607 of this Act at rates that will recover total expenses of
operation, including accrual of annual leave and depreciation.
Receipts from the disposal of, or payments for the loss or
damage to, property held in the fund, rebates, reimbursements,
refunds, and other credits applicable to the operation of the
fund may be deposited in the fund.
(4) The agency shall transfer to the Treasury as
miscellaneous receipts as of the close of the fiscal year such
amounts which the Administrator determines to be in excess of
the needs of the fund.
(5) The fund may be charged with the current value of
supplies and equipment returned to the working capital of the
fund by a post, activity or agency and the proceeds shall be
credited to current applicable appropriations.

Full Committee Votes

Pursuant to the provisions of clause 3(a)(1)(b) of rule
XIII of the House of Representatives, the results of each
rollcall vote on an amendment or on the motion to report,
together with the names of those voting for and those voting
against, are printed below:

ROLLCALL NO. 1

Date: June 27, 2000.
Measure: Foreign Operations, Export Financing, and Related
Programs Appropriations Bill, FY 2001.
Motion by: Ms. Pelosi.
Description of Motion: To provide fiscal year 2000
contingent emergency supplemental appropriations of
$210,000,000 for the Heavily Indebted Poor Countries Trust
Fund.
Results: Rejected 21 yeas to 32 nays.
Members Voting Yea Members Voting Nay
Ms. DeLauro Mr. Aderholt
Mr. Dicks Mr. Boyd
Mr. Dixon Mr. Callahan
Mr. Edwards Mr. Cramer
Mr. Farr Mr. Cunningham
Mr. Forbes Mr. DeLay
Mr. Hinchey Mr. Dickey
Mr. Jackson Mrs. Emerson
Ms. Kilpatrick Mr. Frelinghuysen
Mrs. Lowey Mr. Goode
Mrs. Meek Ms. Granger
Mr. Mollohan Mr. Hobson
Mr. Moran Mr. Istook
Mr. Obey Mr. Kingston
Mr. Olver Mr. Knollenberg
Ms. Pelosi Mr. Kolbe
Mr. Price Mr. Latham
Mr. Sabo Mr. Lewis
Mr. Serrano Mr. Miller
Mr. Visclosky Mr. Murtha
Mr. Wolf Mr. Nethercutt
Mrs. Northup
Mr. Peterson
Mr. Porter
Mr. Regula
Mr. Rogers
Mr. Sununu
Mr. Tiahrt
Mr. Walsh
Mr. Wamp
Mr. Wicker
Mr. Young
Full Committee Votes

rollcall no. 2

Date: June 27, 2000.
Measure: Foreign Operations, Export Financing, and Related
Programs Appropriations Bill, FY 2001.
Motion by: Mrs. Lowey.
Description of Motion: To provide that foreign non-
governmental organizations and multilateral organizations shall
not be subject to requirements more restrictive than those that
apply to United States non-governmental organizations receiving
assistance under Part I of the Foreign Assistance Act of 1961
or shall be ineligible for such assistance solely on the basis
of health or medical services provided by such organizations
that do not violate U.S. Federal or relevant foreign laws.
Results: Rejected 26 yeas to 34 nays.
Members Voting Yea Members Voting Nay
Mr. Boyd Mr. Aderholt
Ms. DeLauro Mr. Bonilla
Mr. Dicks Mr. Callahan
Mr. Dixon Mr. Cunningham
Mr. Edwards Mr. DeLay
Mr. Farr Mr. Dickey
Mr. Frelinghuysen Mrs. Emerson
Mr. Hinchey Mr. Forbes
Mr. Hoyer Mr. Goode
Mr. Jackson Ms. Granger
Ms. Kaptur Mr. Hobson
Ms. Kilpatrick Mr. Istook
Mr. Kolbe Mr. Kingston
Mrs. Lowey Mr. Knollenberg
Mrs. Meek Mr. Latham
Mr. Moran Mr. Lewis
Mr. Obey Mr. Miller
Mr. Olver Mr. Mollohan
Mr. Pastor Mr. Murtha
Ms. Pelosi Mr. Nethercutt
Mr. Porter Mrs. Northup
Mr. Price Mr. Packard
Ms. Roybal-Allard Mr. Peterson
Mr. Sabo Mr. Regula
Mr. Serrano Mr. Rogers
Mr. Visclosky Mr. Skeen
Mr. Sununu
Mr. Taylor
Mr. Tiahrt
Mr. Walsh
Mr. Wamp
Mr. Wicker
Mr. Wolf
Mr. Young
Full Committee Votes

rollcall No. 3

Date: June 27, 2000.
Measure: Foreign Operations, Export Financing, and Related
Programs Appropriations Bill, FY 2001.
Motion By: Mr. Knollenberg.
Description of Motion: To clarify the application of a
limitation on funding of activities related to the Kyoto
Protocol to the Framework Convention on Climate Change to not
restrict funding for any activity otherwise authorized by law.
Results: Adopted 51 yeas to 1 nay.

Members Voting Yea Members Voting Nay

Mr. Aderholt Mr. Mollohan Mr. Sununu
Mr. Bonilla Mr. Murtha
Mr. Boyd Mrs. Northup
Mr. Callahan Mr. Obey
Mr. Cramer Mr. Olver
Mr. Cunningham Mr. Packard
Ms. DeLauro Mr. Pastor
Mr. Dicks Ms. Pelosi
Mr. Dixon Mr. Peterson
Mr. Farr Mr. Porter
Mr. Forbes Mr. Price
Mr. Frelinghuysen Mr. Regula
Mr. Goode Mr. Rogers
Mr. Granger Ms. Roybal-Allard
Mr. Hinchey Mr. Sabo
Mr. Hoyer Mr. Serrano
Mr. Istook Mr. Skeen
Mr. Jackson Mr. Taylor
Ms. Kaptur Mr. Tiahrt
Ms. Kilpatrick Mr. Visclosky
Mr. Knollenberg Mr. Walsh
Mr. Kolbe Mr. Wamp
Mr. Lewis Mr. Wicker
Mrs. Lowey Mr. Wolf
Mrs. Meek Mr. Young
Mr. Miller

Full Committee Votes

Pursuant to the provisions of clause 3(a)(1)(b) of rule
XIII of the House of Representatives, the results of each roll
call vote on an amendment or on the motion to report, together
with the names of those voting for and those voting against,
are printed below:

rollcall no. 4

Date: June 27, 2000.
Measure: Foreign Operations, Export Financing, and Related
Programs Appropriations Bill, FY 2001.
Motion by: Ms. Pelosi.
Description of Motion: To increase funding to combat HIV/
AIDS by $30,000,000 and reduce an equal amount from foreign
military financing.
Results: Rejected 22 yeas to 29 nays.
Members Voting Yea Members Voting Nay
Ms. DeLauro Mr. Aderholt
Mr. Dicks Mr. Bonilla
Mr. Dixon Mr. Boyd
Mr. Edwards Mr. Callahan
Mr. Farr Mr. Cramer
Mr. Forbes Mr. Frelinghuysen
Mr. Hinchey Mr. Goode
Mr. Hoyer Ms. Granger
Mr. Jackson Mr. Hobson
Ms. Kaptur Mr. Kingston
Ms. Kilpatrick Mr. Knollenberg
Mrs. Lowey Mr. Kolbe
Mrs. Meek Mr. Lewis
Mr. Murtha Mr. Miller
Mr. Obey Mrs. Northup
Mr. Olver Mr. Packard
Mr. Pastor Mr. Peterson
Ms. Pelosi Mr. Porter
Ms. Roybal-Allard Mr. Regula
Mr. Sabo Mr. Rogers
Mr. Serrano Mr. Skeen
Mr. Visclosky Mr. Sununu
Mr. Taylor
Mr. Tiahrt
Mr. Walsh
Mr. Wamp
Mr. Wicker
Mr. Wolf
Mr. Young

ADDITIONAL VIEWS

The allocation of resources for the Fiscal Year 2001
Foreign Operations bill of $13.281 billion will not enable this
President or the next to carry out an effective foreign policy
that meets our national security requirements. The low level of
funding will hinder our ability to respond to and confront
ongoing development and security challenges around the world.
Unfortunately, again this year funding levels in the bill
have been reduced well below the Administration's request, and
this has resulted in a bill, which will be difficult to
support. At one point this bill had an allocation of nearly
$13.6 billion, which is still well below the Administration's
request, but would have been a good starting point. Because of
floor action on other appropriations bills, however, the
allocation was reduced to its current level of $13.281 billion,
which makes it $1.539 billion or 10% below the Administration's
request.
As the world continues rapidly changing we have an
unprecedented opportunity and indeed a responsibility to
provide global leadership through the spread of democracy and
the promise of economic growth. The allocation of discretionary
budget resources this year has once again failed to recognize
this fundamental fact, and our foreign policy goals will be
shortchanged.
In addition the overall priorities within the bill are
skewed. While the overall request has been reduced by 10%, the
amounts requested to address the problems of infectious
disease, poverty alleviation, access to family planning, and
debt relief in Africa, Latin America, and Asia have been cut in
a disproportionate manner.
The bill contains only $82 million of the $472 million in
pending requests for Debt relief. This amount will not even
provide enough resources to enable two countries, Bolivia and
Mozambique, who have met all necessary conditions to obtain
relief, to actually get it. There are many other countries on
the verge of qualifying for relief who simply will not receive
it, if this funding level is not increased. The bill also
contains a moratorium for countries, who receive debt relief
from obtaining new loans from both the concessional and market
loan windows of the international financial institutions. The
lack of adequate funding for debt relief and the imposition of
these undue restrictions on these poor countries clearly
demonstrates fundamental opposition to the goals of this
initiative. The Jubilee 2000 campaign for debt relief for the
world's poorest countries enjoys a wide measure of support
throughout the United States and with a broad spectrum of
religious leaders and organizations. It is time for us to make
this funding a priority and to remove undue restrictions.
The bill contains only $202 million of the $244 million
requested to combat HIV/AIDs. While we support the increases in
the bill for the Child Survival and Disease account and the
increases for fighting tuberculosis and providing more for
basic education, it should not come at the expense of funding
to combat HIV/AIDs. The staggering impact of this disease on
the health and development of affected nations has made it
imperative that prevention measures be augmented by strategies
to build capacity to deliver care. The challenges presented to
develop such a multidimensional approach in which effective
care and prevention programs would be delivered in tandem
requires resources.A consensus within the international
community to provide more resources for combating HIV/AIDs has
finally begun. The United States has the responsibility to be
in the forefront of this effort, and we simply cannot fail to
meet this challenge by shortchanging these programs.
The bill also reduces funding for lending to poor countries
by drastically cutting funds for the International Development
Association, the African Development Bank and Fund, and the
Asian Development Fund by 32% below the requested levels.
Overall cuts to all programs in the bill which benefit Africa
and Latin America are 15%, which is unacceptable. While this
bill does contain some funding to respond to the flood
disasters in southern Africa, it is unclear whether that
emergency funding will be finally approved by Congress.
Funds requested for family planning programs are cut to
$385 million, which is 29% below requested levels. In addition
the bill contains objectionable language on the Mexico City
policy, which seeks to impose restrictions on foreign
organizations which are contrary to the principles of free
speech and the laws of the United States.
The Global Environment Facility has been funded at a level
of $36 million against a request of $176 million, which will
endanger its ability to continue environmental lending. In
addition the bill contains undue restrictions on programs to
reduce harmful emissions and global warming.
There are many accounts and programs in the bill that are
funded at levels which we support. Increases have been provided
to the Child Survival and Diseases account and the Peace Corps
for example. However, the bill is in serious need of
correction. The last minute reduction in the allocation and the
fact that these reductions were made in programs which most
directly affect the poorest countries in the world, has forced
us into a position of confrontation and division, which we
regret.
Foreign aid should not be immune from budget cuts; however,
it should not be the victim of skewed priorities. Robust and
well-directed foreign assistance programs are essential for our
national security and are supported by a majority of the
American people. The process of building stability throughout
the world by combating infectious disease and poverty, working
for conflict resolution, enhancing democratization, and
fostering the conditions for economic growth ultimately
benefits all of us.

Nancy Pelosi.
Carolyn Kilpatrick.
Nita Lowey.
Jesse Jackson, Jr.

ADDITIONAL VIEW OF HON. FRANK R. WOLF

While I commend the Committee for the action it has taken
regarding Sierra Leone, I think the U.S. can do more, and I
have been asking the Administration to address this issue. I
have attached my correspondence with Secretary of State
Madeleine Albright and with President Clinton that outlines my
concerns with U.S. policy toward Sierra Leone. I have also
submitted the most recent statement of policy by the State
Department, evidenced in a letter from Ambassador Richard
Holbrooke. Ambassador Holbrooke's letter is a step in the right
direction. I have also included an article from the Washington
Post that reports that Liberia has been arming the rebels of
Sierra Leone.

March 16, 2000.
Hon. Madeleine Korbel Albright,
Secretary of State,
Washington DC.
Dear Madam Secretary: I write today about the worsening
situation in Sierra Leone. Congressman Tony Hall and I visited
Sierra Leone last December. We were horrified at the atrocities
we saw. Throughout the country, rebel groups have tortured,
killed, and maimed thousands of people to gain control of the
country's diamond industry, fueling the trade in illicit
``conflict diamonds.'' Across a broad spectrum, the conditions
in Sierra Leone were among the worse I have ever seen in the
many places I've visited in the world.
At the time of our visit, it was too early to determine the
effectiveness of the Lome Peace Accord and the rebels'
compliance with it. In my trip report, which I have enclosed
for you, I outlined several recommendations about the
developing situation in Sierra Leone and the prospective
response and involvement of the United States and Europe in
achieving peace and stability in the region. In light of the
current situation in Sierra Leone, I want to reiterate those
recommendations with you.
First, the flow of conflict diamonds from rebel held areas
must stop. Reports indicate that rebel forces still control
most of the diamond producing regions in Sierra Leone,
suggesting that the trafficking of these diamonds is going to
continue to fuel bloodshed upon the people of Sierra Leone.
Reports indicate that an overwhelming majority of rebels have
not disarmed and that they have control of most, if not all, of
the diamond producing region. This condition cannot be
tolerated by the U.S., Europe, ECOMOG, and the United Nations.
Congressman Hall has introduced legislation, H.R. 3188, to
certify the country of origin of all diamonds. Thus a diamond
buyer will know where a diamond has been mined and a purchaser
can avoid buying conflict diamonds. Passage of Congressman
Hall's bill will be a huge stride in ending this practice. Your
support for this important legislation would be very helpful.
My report stated that every effort should be made to
support the disarmament program in Sierra Leone. Reports
indicate that not only are the rebels not disarming, but they
have repeatedly confronted at gunpoint ECOMOG and U.N.
peacekeepers and taken their weapons, ammunition, armored
personnel carriers, etc. Bold action is needed from the
Administration on this matter. I urge you to issue a statement
and a fixed date, that you think is reasonable and helpful, to
the rebels making clear when the rebels should be completely
disarmed and what action the U.S. will take if they are not
disarmed.
Promised U.S. action if the rebels do not comply with the
conditions for disarmament should be:
They and their families will not be allowed entry
into the U.S., Britain or any other country--no visas
should be issued to rebels or their family members;
If the rebels' have bank accounts in the U.S. and in
Europe, they should be frozen and they should be denied
access to these accounts and to future commerce with
the U.S., bank accounts of rebel family members should
be included in this prohibition too;
The rebel leaders should be declared war criminals by
the U.S. and other Western countries and direct its
intelligence and police agencies to actively pursue
apprehending rebels who have not disarmed.
These same conditions should also be applied to Liberian
Charles Taylor and all Liberians who have assisted the rebels
in Sierra Leone. It has come to my attention that Taylor
escaped from a Massachusetts prison and fled to Liberia. Taylor
and many Liberians have blood on their hands from their support
of these rebels. By being the primary conduit for trading the
conflict diamonds mined by the rebels, and by reportedly
supplying the rebels with military assistance, Taylor and
others have fueled the atrocities committed by the rebels upon
the people of Sierra Leone. The U.S. should enact similar
measures and conditions against Taylor and other Liberians as
those I proposed for the rebels in Sierra Leone.
If the rebels are not disarmed and if Taylor and other
Liberians continue to traffic in conflict diamonds and to
provide the rebels with military assistance, Taylor and others
should be named as war criminals and they should not be allowed
to travel outside of their country. You should fix a date that
you think is reasonable and helpful.
Lastly, I ask that the U.S. continue to bolster its efforts
to bring relief, aid, and ultimately reconciliation to the
region. U.S. leadership in helping the people of Sierra Leone
recover from the brutality is integral in creating stability
and peace in the region.
I do appreciate you taking the time to visit Sierra Leone.
It was a good thing to do.
I would be happy to discuss with you in more detail my
recommendations and observations. Thank you for your
consideration.
Best wishes.
Sincerely,
Frank R. Wolf,
Member of Congress.

P.S. I have enclosed an unedited, graphic video of some of
the atrocities that occurred in Sierra Leone. I hope that you
or someone you trust will look at this video.
------

May 1, 2000.
Hon. William J. Clinton,
The President, The White House,
Washington, DC.
Dear Mr. President: I am writing to you about the
continuing tragedy in Sierra Leone.
As you know, although a tenuous peace is in place, the
former rebels from the Revolutionary United Front (RUF) are
disarming at a slow to minimal rate. Numerous reports indicate
that the RUF has taken weapons from U.N. peacekeepers at gun
point. Reports also indicate that atrocities such as rape,
intimidation, and forced conscription are continuing by the
supposedly disbanded RUF.
Present and former RUF units still operate and control
certain sections of the country, specifically the diamond
producing areas.
I have enclosed a letter which I sent to Secretary Albright
outlining proposed action that the U.S. should take if the RUF
continues its atrocities, occupation, and reluctance to disarm
by a to be determined designated date.
The entire country of Sierra Leone will continue to
experience suffering and turmoil unless leadership is exercised
by the U.S.
You must do something (see my letter to Secretary Albright
for proposed courses of U.S. action). I urge you to act
quickly.
Best wishes.
Sincerely,
Frank R. Wolf,
Member of Congress.
------

May 19, 2000.
Hon. William J. Clinton,
The President, The White House,
Washington, DC.
Dear Mr. President: I want to share with you this editorial
from today's New York Times that calls for Sierra Leonian rebel
leader Foday Sankoh to be tried as a war criminal.
Your African policy has done little to address and prevent
the large-scale human rights violations that occurred in
Rwanda, Sudan, and now in Sierra Leone.
You now have a chance to act by speaking out and declaring
Sankoh, and his associates, war criminals because of the
documented atrocities they committed, promoted, or fueled
against the people of Sierra Leone.
I have previously written to you about Sierra Leone and
have enclosed a copy of my correspondence with you on this
subject.
I urge you to promptly name Sankoh and his associates war
criminals to prevent further bloodshed and to send a message
throughout Africa that the U.S. is serious in going after
people who have killed, maimed, and wreaked havoc on so many
people's lives.
I also urge you to support Congressman Tony Hall's
legislation, H.R. 3188, which would require diamonds bought and
sold in the U.S. to be certified as to their country of origin.
This legislation would help address the problem of the
trafficking of ``conflict diamonds'' that have fueled the
atrocities in Sierra Leone and other conflicts in Africa.
Best wishes.
Sincerely,
Frank R. Wolf,
Member of Congress.
------

[From the New York Times, May 19, 2000]

Prosecuting Foday Sankoh

For the last decade Foday Sankoh has led one of the world's most
brutal guerrilla movements. His Revolutionary United Front has
terrorized Sierra Leone by murdering thousands of civilians, gang-
raping women and girls, and chopping off the limbs of suspected
opponents. Mr. Sankoh's arrest this week is therefore welcome news. It
is imperative that he now be charged and tried for war crimes.
Mr. Sankoh was a party to the 1999 Lome peace accord that was to
have ended Sierra Leone's brutal civil war. That accord failed in part
because it granted Mr. Sankoh immunity from prosecution for previous
war crimes, thereby reinforcing the cycle of violent lawlessness in
which the rebel leader and his murderous associates have thrived. Mr.
Sankoh's forces have clearly broken their end of the bargain by
refusing to disarm and restarting the war. Whether the previous amnesty
should now be rescinded can be argued either way. But there is no
disputing that Mr. Sankoh's forces have committed countless crimes
since the accord was signed that would not be covered by the amnesty.
On these they should unquestionably be prosecuted.
Under normal circumstances, it is best for people to be tried in
the countries where they committed their crimes. But Sierra Leone's
government does not have the means to guarantee an orderly trial or due
process in such a highly charged case. Witness protection would be
impossible, and there is the danger of mob justice. Neighboring
Liberia's former dictator, Samuel K. Doe, for example, was captured by
a rebel gang in 1990, stripped naked and tortured to death. That crude
vengeance ratcheted up the cycle of violence and criminality that
continues to haunt Liberia.
A trial for Mr. Sankoh must be conducted according to international
standards before impartial judges, affording the accused access to
counsel and the means to wage an effective defense. This is the kind of
case for which the International Criminal Court was created two years
ago. Since that court is not yet functioning, the best approach is to
create an international tribunal like those the U.N. has established
for Rwanda and the former Yugoslavia. It would have a mandate to try
not just Mr. Sankoh but his confederates, as well as leaders of other
fighting factions that have committed heinous crimes. Extensive
evidence has already been assembled by rights groups, but the U.N.
should be prepared to send an investigative team to Sierra Leone to
document war crimes.
Mr. Sankoh's arrest may complicate efforts to secure the release of
the remaining 270 U.N. peacekeepers held hostage by the rebels. But it
should now be clear that any attempt to enlist Mr. Sankoh as a partner
in peace is doomed to fail. Bringing him to justice is the best way to
curb the anarchy that lies at the root of Sierra Leone's agony.
______

The Representative of the
United States of America to the United Nations,
May 30, 2000.
Hon. Judd Gregg,
U.S. Senate,
Washington, DC.
Dear Mr. Chairman: Allow me to thank you again for your
courtesy and for our exchange of views on peacekeeping issues.
I know the Secretary also appreciates your discussion with her
on May 20, and I would like to follow up on both conversations.
I have shared our discussions with Secretary Albright, Sandy
Berger, and Jack Lew, all of whom expressed their appreciation
of your decision to release the funds for Kosovo and for your
readiness to meet with the Australian Ambassador to resolve the
East Timor peacekeeping ``hold.''
You asked for a letter encapsulating our discussion on
Sierra Leone and Congo. After close consultation with Secretary
Albright, let me review where we stand on each issue:
First, Sierra Leone. Let me posit five principles that we
will use to govern our policy. First, the United States does
not believe that Foday Sankoh should play any role whatsoever
in the future political process in Sierra Leone, and we will
continue to press this point. He must be held accountable for
his actions. Second, we strongly support the British military
presence in Sierra Leone, which has played a key role in
restoring a measure of stability to Freetown. We are discussing
with the British their continuing role, and on May 23 London
announced an important training program for the Sierra Leone
army, something that they will undertake at their own expense
outside the UN system. Third, the objective should be to ensure
that regional and international forces in Sierra Leone,
together with the armed forces of the Government of Sierra
Leone, have the capacity to disrupt RUF control of Sierra
Leone's diamond producing areas, the main source of RUF income.
Completely eliminating them as a military force is not likely
to be possible at an acceptable cost, but sharply reducing
their sources of financial support and restricting their
capability to threaten the people or Government of Sierra Leone
is within reach of sufficient numbers of properly trained,
equipped, and well-led troops and is vitally important.
The most likely nations to carry the burden would be
Nigeria and Ghana, with the backing of other ECOWAS states.
Other nations who are already rushing troops to Sierra Leone
include India, Jordan and Bangladesh. Most potential troop
contributors from the region are likely to require better
equipment and training if they are to contribute meaningfully.
Pentagon and EUCOM assessment teams are studying the issue
urgently. If our objectives are to be accomplished, the U.S.
will need to be ready, with congressional support and funding,
to provide our share of an international effort to provide
equipment and training to those who are willing to do the
military job--including the governments of Sierra Leone and
other countries in the region. Any direct training of
contributing country troops by U.S. military personnel would be
done outside Sierra Leone and no U.S. combat troops would be
deployed to Sierra Leone. We will have to work out the
relationship between such an operation and the UN, recognizing
that for many countries a UN role is preferable--but we must
ensure that the mandate is robust. Fourth, since there is
virtually no real government structure left in Sierra Leone, if
the security situation can be stabilized a longer term
international effort will be needed to help build viable
institutions in Sierra Leone. It will take time, but in the
long run, the rest of the effort will be unsuccessful if it is
not accompanied by this component. However, this cannot start
until the situation is stabilized, and there is no present
funding request for this function. Fifth (this is a point I
failed to mention in our meeting) we must develop a
corresponding political strategy for dealing appropriately with
Liberia's President, Charles Taylor, and with the illicit
diamond trade that fuels conflict and criminality in the
region.
On the Congo, the problems are still daunting, but there
has been some real movement since I first discussed this issue
with you in late February:
(A) On May 4, in my presence, the Kabila Government
signed the Status of Forces Agreement with the UN--an
essential precondition for any UN deployment;
(B) Kabila has said he would accept South African
troops;
(C) The Lusaka parties signed a new cease-fire
agreement effective April 14, calming the situation on
the ground considerably;
(D) The UN Security Council Mission negotiated on May
8 a cease-fire between the Ugandans and Rwandans who
were fighting in Kisangani (Congo's third largest, and
perhaps most strategic, city): Regional leaders
subsequently secured agreement between Rwanda and
Uganda on a detailed disengagement plan;
(E) The Presidents of Rwanda and Uganda asked for
immediate UN assistance in support of demilitarizing
Kisangani;
(F) All the parties to the war in the Congo has asked
for the UN observer mission as soon as possible to
implement the Lusaka Ceasefire Agreement;
(G) The South Africans sent a high-level military
mission in New York to discuss their role in Congo, and
the Pakistanis (among others) are about to send troops.
The South Africans met with a joint State-Pentagon-NSC
team to discuss close coordination.
Of course, not all the news from Congo is positive. While
progressing, the political dialogue called for by Lusaka is off
to a slow start; the UN and the OAU military observer missions
have not meshed sufficiently; some of the rebels still violate
the cease-fire on occasion; and there are many other lesser
problems. Still there is a real desire for some resolution to
these issues by most parties. What is required next is a step-
by-step test of their commitments to implement their own
``African agreement for an African problem.'' This is one of
our highest priorities.
As we both said to you, neither the Secretary nor I are
certain that Lusaka will succeed. But we are certain that
Lusaka will fail if the UN does not take the next series of
steps to support it, as called for by all parties. The recent
progress supports this view, I believe.
For the United States, this will require the unblocking of
$41 million of reprogrammed peacekeeping funds for the current
fiscal year for Congo. We believe that this request does not
put our national prestige on the line; it is a UN operation
(with no U.S. troops in the UN operation). However, if we do
not pay our share, we are concerned that the UN will be unable
to bring in adequate and properly equipped troops, and the
resulting failure of the mission will be attributed, however
unfairly, to the United States.
Our arrears on the current operation in Sierra Leone limit
our ability to promote effectively the critical policy
objectives outlined in this letter. More broadly, failure to
pay our share of these missions risks seriously undermining our
all-out effort to carry the Helms-Biden reform package, on
which we are making real progress. You will note several recent
news articles regarding our forward movement on a wide range of
issues, including the admission of Israel to a UN regional
grouping (after 40 years!), the new GAO report that shows UN
progress, and the first debate in 27 years on revising the UN
peacekeeping scale. All this forward movement will greatly
benefit from your support and I thank you for your thoughtful
involvement in this process.
I hope this letter is responsive to your request. If I can
be of any further assistance, please do not hesitate to contact
me or my colleagues in the State Department.
Sincerely,
Richard C. Holbrooke.
______

[From the Washington Post, June 18]

Liberia Reportedly Arming Guerrillas

(By Douglas Farah)

Monrovia, Liberia--Sierra Leone's rebels have been freshly
reinforced by Liberia with arms and recruits and are preparing to fight
than let U.N. peacekeeping forces take over their diamond-mining
strongholds, say Western intelligence officials and West African
sources with direct knowledge of the events.
In the past two weeks, Liberian President Charles Taylor has sent
several convoys of trucks loaded with weapons, food and medicine across
the border to the rebels of the Revolutionary United Front (RUF) in the
Kono region of northeastern Sierra Leone, according to the sources.
Taylor has also sponsored military training for several hundred RUF
fighters at his own security forces' main camp, they said. Most of the
reinforced RUF units are led by Sam Bockarie, a longtime rebel leader
better known as Mosquito who is now living in Monrovia under Taylor's
protection.
For months, Western military and intelligence officials have
reported Taylor's tactic support for the rebels and friendship with
their leaders. But in recent days intelligence officials, diplomats and
sources with direct knowledge of RUF activities say his support has
become more active and the threat of a wider regional war is growing.
These sources say Taylor's recent reinforcement of the rebels is due to
his determination to either maintain RUF control over the bulk of
Sierra Leon's diamond fields, or back a new RUF escalation of the war.
While Taylor acknowledges a friendship and historical ties with RUF
leaders, he denies that he is arming the rebels now.
The rebels' support from Taylor and from the president of nearly
Burkina Faso is the latest turn in nearly two decades of intertwined
West African wars--conflicts that, at their inception, pitted brutal,
corrupt U.S.-backed governments against revolutionaries trained and
armed by Libyan leader Moammar Gadhafi. In the 1980s and `90s, Gadhafi
backed the rise of Taylor, RUF leader Foday Sankoh and the president of
Burkina Faso, Blaise Compaore. While Libya's influence has waned in
recent years, its proteges still cooperate closely, intelligence
analysts said.
The current crisis arose last month when Sankoh refused to disarm
the RUF as called for in a July 1999 peace agreement. The situation
deteriorated when the rebels kidnapped about 500 U.N. peacekeepers and
Sankoh fled the capital. Taylor, under international pressure, secured
the peacekeepers's release. Sankoh was arrested by government troops
and remains in prison.
Last week, British Foreign Secretary Robin Cook told Parliament
that ``there is continuing evidence establishing close links between
the rebels in Sierra Leone and supporters in Liberia.'' The European
Union suspended $48 million in aid to Liberia to pressure it to halt
what another British Foreign Office minister, Keith Vaz, called ``the
flow of illicit weapons to the [RUF] rebels . . . from outside.''
Scholars and diplomats say Taylor backs the RUF because he profits
from the sale of diamonds they mine, and because the rebels employ many
of Taylor's impoverished former militia fighters, who otherwise would
be a threat to his regime. ``If you can't give Taylor what he gets from
Sierra Leone, you can't give him anything and he won't stop,'' said
Ibrahim Abdullah, a historian at South Africa's University of the
Western Cape who studies the RUF and Liberia.'' What he is getting from
Sierra Leone is jobs for his boys and diamonds.''
Confidential RUF documents found in Sankoh's house after he fled
show he was shipping diamonds out of Sierra Leone through Liberia, with
Taylor's knowledge. The documents also show that Sankoh was growing
increasingly angry at Taylor because Taylor was taking 90 percent of
the profits.
In an effort to protect his interests without escalating the war,
Taylor, with Campaore's backing, has pushed for a truce in Sierra Leone
that would leave the rebels in charge of the main diamond fields.
Thathas been rejected by Sierra Leone and the region's major power,
Nigeria, and tensions are growing.
Last week, senior officials in both Liberia and Sierra Leone warned
that the war could spill into Liberia. Sierra Leone's deputy defense
minister, Hinga Norman, said his troops would take on Taylor if
necessary to finish off the rebels.
Daniel Chea, Liberia's defense minister, responded by warning
Sierra Leone not to ``threaten this country with war, especially one
that you cannot win. . . . Stop blaming your war on Liberia.''
Intelligence analysts and sources close to Taylor said he cannot
allow the rebels to lose the war, in part because he has taken millions
of dollars from foreign investors, in the form of licensing fees, to
allow them to mine Sierra Leone's diamonds. ``That is why he is
pressing for a cease-fire, where the rebels control the mine, or there
will be all-out war,'' said one source familiar with RUF operations.
Liberian Information Minister Joe Mulbah denied the allegations,
telling the BBC recently that his government ``has never sanctioned the
traffic of diamonds or guns. We are not involved [in Sierra Leone] . .
. and I challenge anyone to prove us wrong when we say we have nothing
to do with diamond deals in Sierra Leone.''
Sources with direct knowledge said mercenaries from South Africa
and Burkina Faso who are working for Taylor have trained fighters under
rebel leader Mosquito's command at Taylor's training camp in Gbtala, 90
miles northeast of Monrovia. They said Mosquito's men are equipped with
surface-to-air missiles, assault rifles, antitank weapons and other
arms from a 66-ton shipment that moved through Burkina Faso.
In Burkina Faso earlier this month, Compaore played host to senior
RUF commanders to plan military and political strategy, diplomats and
intelligence analysts said. In return for their support, Taylor and
Compaore receive diamonds from the RUF, which are then sold on the
international diamond market, intelligence sources and U.N.
investigators said.
Taylor, Sankoh and Compaore have been linked since the mid-1980s,
according to academics, intelligence analysts and participants in the
early days of the revolutionary fervor that swept the region. Liberia's
U.S.-backed dictator, Samuel Doe, accused Taylor, then a senior
Liberian bureaucrat, of stealing government funds. When Taylor fled to
the United States, he was arrested at Doe's request, but escaped to
Burkina Faso.
According to historians and regional experts, Compaore enlisted
Liberian aid in the killing of then-President Thomas Sankara, after
which Compaore seized power in Burkina Faso.
Taylor launched his revolt against Doe in 1989, then helped Sankoh
found the RUF in 1991. Compaore, Taylor and Sankoh, as well as many of
their senior commanders, trained at Libya's World Revolutionary
Headquarters in the 1980s. The Reagan administration regarded Libya as
a primary sponsor of international terrorism and saw Doe as a reliable
ally. It poured $500 million in aid into Doe's Liberia and pressured
Nigeria and other pro-Western governments to intervene militarily,
using Sierra Leone as a base, to fight Taylor. But Taylor ultimately
fought to a draw, signed a cease-fire and won a presidential election
in 1997.
Troops sent by Taylor and Compaore fought alongside the RUF in
Sierra Leone, and the RUF helped Taylor's troops, while Compaore
supplied both with a secure arms pipeline, according to investigators.
``The deal was that the RUF would help Taylor `liberate' Liberia
and afterward would provide a base for the RUF to enter Sierra Leone,''
said Abdullah. ``When the RUF entered Sierra Leone there was a
Burkinabe [Burkina Faso] force under their command that Taylor arranged
to send in. All the arms for Taylor and the RUF came from Burkina Faso,
and were bought in Ukraine. The payment for all this was diamonds that
went through Liberia, Burkina Faso and the Ivory Coast.'' That basic
route still works, intelligence officials said.
``Until that iron triangle is broken, there will be turmoil in the
region,'' said one intelligence official. ``There is too much history,
too much money and too much blood for them to stop now, and they view
losing the RUF as the beginning of the end.''

Frank R. Wolf.