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Homeland Security

Washington File

30 April 2003

Powell: 2004 Foreign Affairs Budget Targets Terrorism

(Includes funds that would "redefine" foreign aid) (3740)
The Bush administration's $28,500 million spending request for foreign
operations in the fiscal year beginning October 1 includes $4,700
million to fight global terrorism, Secretary of State Colin Powell
says.
Testifying April 30 before a Senate Appropriations subcommittee,
Powell said the proposed budget includes more than $2,000 million to
fight HIV/AIDS, malaria and tuberculosis and $1,300 million toward the
proposed Millennium Challenge Account (MCA).
The foreign operations budget covers the Department of State, the U.S.
Agency for International Development (USAID) and other foreign affairs
agencies.
The Senate and the House of Representatives will consider the proposal
in approving its own budget and in passing the 13 spending bills that
follow. The president can sign or veto the bills.
The MCA would "redefine" foreign aid by providing funds to countries
that "encourage economic freedom, root out corruption and respect the
rights of their people," Powell quoted President Bush as saying. The
MCA, proposed by President Bush in 2002, would supplement humanitarian
assistance and development aid programs administered by USAID, Powell
said. Congress must agree to authorize the MCA and send an
authorization bill to the president for signature.
The $4,700 million in anti-terrorist funds would help "frontline
states" strengthen their economies, internal counter-terrorism
capabilities and border controls, he said. The amount includes $657
million for Afghanistan, $460 million for Jordan, $395 million for
Pakistan, $255 million for Turkey, $136 million for Indonesia and $87
million for the Philippines.
The administration is requesting $1,190 million for a flexible
emergency food aid fund that would respond to food crises case by
case, Powell said.
The budget request includes a 15 percent increase over current
spending for the Central Asian countries of Uzbekistan, Kyrgyzstan and
Tajikistan, Powell said. The funds would go for civil society
development, small business promotion, conflict reduction and economic
reform.
The request includes $731 million to fight drugs in the Andean region,
$463 million of it for Colombia, he said.
The foreign operations budget also would provide $145 million for a
new U.S.-Middle East Partnership Initiative to expand educational and
economic opportunities, empower women, and strengthen civil society
and the rule of law, Powell said.
During questioning from senators, the secretary said he believes the
United States will find weapons of mass destruction in Iraq. He added
that there will not be a "premature pullout from Iraq" but that other
coalition members may begin contributing more forces to substitute for
U.S. troops.
Powell said the United States is taking a multilateral approach to
talks with North Korea and will not "be rushed" by that country to
resolve the nuclear weapons issue.
He said he would "look again" at the administration's request for aid
to Russia after Senator Ted Stevens of Alaska, Republican chairman of
the full Appropriations Committee, warned that cuts of that size would
hurt mostly rural parts of the country.
The administration remains committed to signing a U.S.-Chile Free
Trade Agreement, Powell added.
Responding to a comment from Senator Tom Harkin, an Iowa Democrat,
Powell said he would press for making reconstruction projects in Iraq
accessible to persons with disabilities. Harkin also urged the United
States to be "heavily involved" in drafting a United Nations
convention on persons with disabilities in June.
(Note: In the following text, "billion" equal 1,000 million.)
Following is the text of Powell's prepared remarks:
(begin text)
U.S. DEPARTMENT OF STATE
Office of the Spokesman
April 30, 2003
(As Prepared)
SECRETARY OF STATE COLIN L. POWELL
SENATE COMMITTEE ON APPROPRIATIONS
SUBCOMMITTEE ON FOREIGN OPERATIONS
April 30, 2003
Mr. Chairman, members of the subcommittee, I am pleased to appear
before you to testify in support of the President's International
Affairs Budget for Fiscal Year [FY] 2004. Funding requested for FY
2004 for the Department of State, USAID, and other foreign affairs
agencies is $28.5 billion.
The President's Budget will allow the United States to:
-- Target security and economic assistance to sustain key countries
supporting us in the war on terrorism and helping us to stem the
proliferation of weapons of mass destruction;
-- Launch the Millennium Challenge Account -- a new partnership
generating support to countries that rule justly, invest in their
people, and encourage economic freedom;
-- Strengthen the U.S. and global commitment to fighting HIV/AIDS and
alleviating humanitarian hardships;
-- Combat illegal drugs in the Andean Region of South America, as well
as bolster democracy in one of that region's most important countries,
Colombia; and
-- Reinforce America's world-class diplomatic force, focusing on the
people, places, and tools needed to promote our foreign policies
around the world.
I am particularly proud of the last bullet, Mr. Chairman, because for
the past two years I have concentrated on each of my jobs -- primary
foreign policy advisor to the President and Chief Executive Officer of
the State Department.
I know this subcommittee's specific oversight responsibilities lie in
the area of Foreign Operations, but I also know that you are all
members of the larger Appropriations Committee. In that capacity, I
ask for your strong support for funding for my CEO [chief executive
officer] initiatives. And I would like to highlight for you three of
the most important of those initiatives.
The CEO Responsibilities: Taking Care of Operations
First, we have been reinforcing our diplomatic force for two years and
we will continue in FY 2004. We will hire 399 more professionals to
help the President carry out the nation's foreign policy. This hiring
will bring us to the 1,100-plus new foreign and civil service officers
we set out to hire over the first three years to bring the
Department's personnel back in line with its diplomatic workload.
Moreover, completion of these hires will allow us the flexibility to
train and educate all of our officers as they should be trained and
educated. So I am proud of that accomplishment and want to thank you
for helping me bring it about.
Second, I promised to bring state-of-the-art communications capability
to the Department -- because people who can't communicate rapidly and
effectively in today's globalizing world can't carry out our foreign
policy. We are approaching our goal in that regard as well. In both
unclassified and classified communications capability, including
desk-top access to the Internet for every man and woman at State, we
will be there at the end of 2003. The budget before you will sustain
these gains and continue our information technology modernization
effort.
Finally, with respect to my CEO role, I wanted to sweep the slate
clean and completely revamp the way we construct our embassies and
other overseas buildings, as well as improve the way we secure our men
and women who occupy them. As you well know, that last task is a
long-term, almost never-ending one, particularly in this time of
heightened terrorist activities. But we are well on the way to
implementing both the construction and the security tasks in a better
way, in a less expensive way, and in a way that subsequent CEOs can
continue and improve on.
Mr. Chairman, the President's FY 2004 discretionary request for the
Department of State and Related Agencies is $8.497 billion. As you
review this funding in the larger committee, I ask for your support
for these dollars.
Let me turn now to your primary oversight responsibility, Foreign
Operations.
The Foreign Policy Advisor Responsibilities: Funding America's
Diplomacy Around the World
The FY 2004 budget proposes several initiatives to advance U.S.
national security interests and preserve American leadership. The FY
2004 Foreign Operations budget that funds programs for the Department
State, USAID and other foreign affairs agencies is $18.8 billion.
Today, our number one priority is to fight and win the global war on
terrorism. The budget furthers this goal by providing economic,
military, and democracy assistance to key foreign partners and allies,
including $4.7 billion to countries that have joined us in the war on
terrorism.
The budget also promotes international peace and prosperity by
launching the most innovative approach to U.S. foreign assistance in
more than forty years. The new Millennium Challenge Account (MCA), an
independent government corporation funded at $1.3 billion, will
redefine "aid." As President Bush told African leaders meeting in
Mauritius recently, this aid will go to "nations that encourage
economic freedom, root out corruption, and respect the rights of their
people."
Moreover, this budget offers hope and a helping hand to countries
facing health catastrophes, poverty and despair, and humanitarian
disasters. It provides $1.345 billion to combat the global HIV/AIDS
epidemic, TB [tuberculosis], and Malaria; more than $1 billion to meet
the needs of refugees and internally displaced peoples; and $200
million in emergency food assistance to support dire famine needs. In
addition, the budget includes a new $100 million proposal to enable
swift responses to complex foreign crises, including support for peace
and humanitarian intervention operations to prevent or respond to
foreign territorial disputes, armed ethnic and civil conflicts that
pose threats to regional and international peace, and acts of ethnic
cleansing, mass killing, or genocide.
Mr. Chairman, let me give you some details.
The U.S. is successfully prosecuting the global war on terrorism on a
number of fronts. We are providing extensive assistance to states on
the front lines of the anti-terror struggle. Working with our
international partners bilaterally and through multilateral
organizations, we have frozen more than $110 million in terrorist
assets, launched new initiatives to secure global networks of commerce
and communication, and significantly increased the cooperation of our
law enforcement and intelligence communities. Afghanistan is no longer
a haven for al-Qaeda. We are now working with the Afghan Authority,
other governments, international organizations, and NGOs to rebuild
Afghanistan. Around the world we are combating the unholy alliance of
drug traffickers and terrorists who threaten the internal stability of
countries. We are leading the international effort to prevent weapons
of mass destruction from falling into the hands of those who would do
harm to us and others. At the same time, we are rejuvenating and
expanding our public diplomacy efforts worldwide.
Assistance to Frontline States
The FY 2004 International Affairs budget provides approximately $4.7
billion in assistance to the Frontline States, which have joined with
us in the war on terrorism. This funding will provide crucial
assistance to enable these countries to strengthen their economies,
internal counter-terrorism capabilities and border controls.
Of this amount, the President's Budget provides $657 million for
Afghanistan, $460 million for Jordan, $395 million for Pakistan, $255
million for Turkey, $136 million for Indonesia, and $87 million for
the Philippines. In Afghanistan, the funding will be used to fulfill
our commitment to rebuild Afghanistan's road network; establish
security through a national military and national police force,
including counter-terrorism and counter-narcotics components;
establish broad-based and accountable governance through democratic
institutions and an active civil society; ensure a peace dividend for
the Afghan people through economic reconstruction; and provide
humanitarian assistance to sustain returning refugees and displaced
persons. United States assistance will continue to be coordinated with
the Afghan government, the United Nations, and other international
donors.
The State Department's Anti-Terrorism Assistance (ATA) program will
continue to provide frontline states a full complement of training
courses, such as a course on how to conduct a post-terrorist attack
investigation or how to respond to a WMD [weapons of mass destruction]
event. The budget will also fund additional equipment grants to
sustain the skills and capabilities acquired in the ATA courses. It
will support as well in-country training programs in Afghanistan,
Pakistan, and Indonesia.
Central Asia and Freedom Support Act Nations
In FY 2004, over $157 million in Freedom Support Act (FSA) funding
will go to assistance programs in the Central Asian states. The FY
2004 budget continues to focus FSA funds to programs in Uzbekistan,
Kyrgyzstan and Tajikistan, recognizing that Central Asia is of
strategic importance to U.S. foreign policy objectives. The FY 2004
assistance level for Uzbekistan, Kyrgyzstan and Tajikistan is 15
percent above 2003. These funds will support civil society
development, small business promotion, conflict reduction, and
economic reform in the region. These efforts are designed to promote
economic development and strengthen the rule of law in order to reduce
the appeal of extremist movements and stem the flow of illegal drugs
that finance terrorist activities.
Funding levels and country distributions for the FSA nations reflect
shifting priorities in the region. For example, after more than 10
years of high levels of assistance, it is time to begin the process of
graduating countries in this region from economic assistance, as we
have done with countries in Eastern Europe that have made sufficient
progress in the transition to market-based democracies. U.S. economic
assistance to Russia and Ukraine will begin phasing down in FY 2004, a
decrease of 32 percent from 2003, moving these countries towards
graduation.
Combating Illegal Drugs and Stemming Terrorism
The President's request for $731 million for the Andean Counterdrug
Initiative includes $463 million for Colombia. An additional $110
million in military assistance to Colombia will support Colombian
President Uribe's unified campaign against terrorists and the drug
trade that fuels their activities. The aim is to secure democracy,
extend security, and restore economic prosperity to Colombia and
prevent the narco-terrorists from spreading instability to the broader
Andean region. Critical components of this effort include resumption
of the Airbridge Denial program to stop internal and cross-border
aerial trafficking in illicit drugs, stepped up eradication and
alternative development efforts, and technical assistance to
strengthen Colombia's police and judicial institutions.
Halting Access of Rogue States and Terrorists to Weapons of Mass
Destruction
Decreasing the threats posed by terrorist groups, rogue states, and
other non-state actors requires halting the spread of weapons of mass
destruction (WMD) and related technology. To achieve this goal, we
must strengthen partnerships with countries that share our views in
dealing with the threat of terrorism and resolving regional conflicts.
The FY 2004 budget requests $35 million for the Nonproliferation and
Disarmament Fund (NDF), more than double the FY 2003 request,
increases funding for overseas Export Controls and Border Security
(EXBS) to $40 million, and supports additional funding for Science
Centers and Bio-Chem Redirection Programs.
Funding increases requested for the NDF and EXBS programs seek to
prevent weapons of mass destruction from falling into the hands of
terrorist groups or states by preventing their movement across borders
and destroying or safeguarding known quantities of weapons or source
material. The Science Centers and Bio-Chem Redirection programs
support the same goals by engaging former Soviet weapons scientists
and engineers in peaceful scientific activities, providing them an
alternative to marketing their skills to states or groups of concern.
Millennium Challenge Account
The FY 2004 Budget request of $1.3 billion for the new Millennium
Challenge Account (MCA) as a government corporation fulfills the
President's March 2002 pledge to create a new bilateral assistance
program, markedly different from existing models. This budget is a
huge step towards the President's commitment of $5 billion in annual
funding for the MCA by 2006, a 50 percent increase in core development
assistance.
The MCA supplements U.S. commitments to humanitarian assistance and
existing development aid programs funded and implemented by USAID. It
will assist developing countries that make sound policy decisions and
demonstrate solid performance on economic growth and reducing poverty.
-- MCA funds will go only to selected developing countries that
demonstrate a commitment to sound policies -- based on clear, concrete
and objective criteria. To become eligible for MCA resources,
countries must demonstrate their commitment to economic opportunity,
investing in people, and good governance.
-- Resources will be available through agreements with recipient
countries that specify a limited number of clear measurable goals,
activities, and benchmarks, and financial accountability standards.
The MCA will be administered by a new government corporation designed
to support innovative strategies and to ensure accountability for
measurable results. The corporation will be supervised by a Board of
Directors composed of Cabinet level officials and chaired by the
Secretary of State. Personnel will be drawn from a variety of
government agencies and non-government institutions and serve
limited-term appointments.
In FY 2004, countries eligible to borrow from the International
Development Association (IDA), and which have per capita incomes below
$1,435, (the historical IDA cutoff) will be considered. In 2005, all
countries with incomes below $1,435 will be considered. In 2006, all
countries with incomes up to $2,975 (the current World Bank cutoff for
lower middle income countries) will be eligible.
The selection process will use 16 indicators to assess national
performance -- these indicators being relative to governing justly,
investing in people, and encouraging economic freedom. These
indicators were chosen because of the quality and objectivity of their
data, country coverage, public availability, and correlation with
growth and poverty reduction. The results of a review of the
indicators will be used by the MCA Board of Directors to make a final
recommendation to the President on a list of MCA countries.
The U.S.-Middle East Partnership Initiative
The President's Budget includes $145 million for the Middle East
Partnership Initiative (MEPI). This initiative gives us a framework
and funding for working with the Arab world to expand educational and
economic opportunities, empower women, and strengthen civil society
and the rule of law. The peoples and governments of the Middle East
face daunting human challenges. Their economies are stagnant and
unable to provide jobs for millions of young people entering the
workplace each year. Too many of their governments appear closed and
unresponsive to the needs of their citizens. And their schools are not
equipping students to succeed in today's globalizing world. With the
programs of the MEPI, we will work with Arab governments, groups, and
individuals to bridge the jobs gap with economic reform, business
investment, and private sector development; close the freedom gap with
projects to strengthen civil society, expand political participation,
and lift the voices of women; and bridge the knowledge gap with better
schools and more opportunities for higher education. The U.S.-Middle
East Partnership Initiative is an investment in a more stable,
peaceful, prosperous, and democratic Arab world.
The timing now is critical. As we work to establish a peaceful and
prosperous Iraq, and as we commit our energy and resources to
realizing President Bush's vision of two states -- Israel and
Palestine -- living side by side, we must also work to ensure that the
Middle East as a region does not fall farther and farther behind with
respect to economic and political freedom. We need these MEPI dollars
to assist us in laying the broader foundation for a better tomorrow
for all.
Fighting the Global AIDS Pandemic
The FY 2004 budget continues the Administration's commitment to combat
HIV/AIDS and to help bring care and treatment to infected people
overseas. The HIV/AIDS pandemic has killed 23 million of the 63
million people it has infected to date and left 14 million orphans
worldwide. President Bush has made fighting this pandemic a priority
of U.S. foreign policy.
The President believes the global community can -- and must -- do more
to halt the advance of the pandemic, and that the United States should
lead by example. Thus, the President's FY 2004 budget request signals
a further, massive increase in resources to combat the HIV/AIDs
pandemic. As described in the State of the Union, the President is
committing to provide a total of $15 billion over the next five years
to turn the tide in the war on HIV/AIDs, beginning with over $2
billion in the FY 2004 budget request and rising thereafter. These
funds will be targeted on the hardest hit countries, especially in
Africa and the Caribbean with the objective of achieving dramatic
on-the-ground results. This new dramatic commitment is reflected in
the Administration's over $2 billion FY 2004 budget request, which
includes:
-- State Department -- $450 million;
-- USAID -- $895 million, including $100 million for the Global Fund,
$150 million for the International Mother and Child HIV Prevention;
and $105 million for TB and Malaria; and
-- HHS/CDC/NIH [Health and Human Services/Centers for Disease
Control/National Institutes of Health] -- $695 million, including $100
million for the Global Fund, $150 million for the International Mother
and Child HIV Prevention, and $15 million for TB and Malaria.
In order to ensure accountability for results, the President has asked
me to establish at State a new Special Coordinator for International
HIV/AIDS Assistance. The Special Coordinator will work for me and be
responsible for coordinating all international HIV/AIDS programs and
efforts of the agencies that implement them.
Hunger and Famine
Historically the United States has been the largest donor of
assistance for victims of protracted and emergency food crises.
Congress provided $1.44 billion in USAID-administered food aid for FY
2003. Our FY 2004 food aid request of $1.19 billion will be
complemented with a Famine Fund, as I mentioned before, which is a
$200 million fund with flexible authorities to provide emergency food,
grants or support to meet dire needs on a case-by-case basis.
Supplemental Funding
As you are aware, Mr. Chairman, on April 16 President Bush signed the
Supplemental legislation in which the Congress granted the President
over $79 billion, with almost $8.2 billion of that for International
Affairs. I want to thank you and our other oversight committees as
well as the entire Congress for being so responsive. We have a huge
challenge facing us in Iraq and these dollars will go a long way
toward helping us meet that challenge successfully.
Summary
Mr. Chairman, members of the subcommittee, to advance America's
interests around the world we need the dollars in the President's
Budget for FY 2004 and his supplemental request for this fiscal year.
We need the dollars under both of my hats -- CEO and principal foreign
policy advisor. The times we live in are troubled to be sure, but I
believe there is every bit as much opportunity in the days ahead as
there is danger. American leadership is essential to dealing with both
the danger and the opportunity. With regard to the Department of
State, the President's FY 2004 budget is crucial to the exercise of
that leadership.
Thank you and I will be pleased to answer your questions.
(end text)
(Distributed by the Office of International Information Programs, U.S.
Department of State. Web site: http://usinfo.state.gov)



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