11 September 1998
TEXT: HOUSE APPROPRIATIONS COMMITTEE ON FOREIGN AID BILL
(9/10 press release on foreign aid bill's provisions) (1160) Washington -- The House Appropriations Committee on September 10 voted to approve a $16,200 million spending bill to fund foreign aid programs for the 1999 fiscal year, which begins October 1. The $16,200 million amount includes $3,400 million for the International Monetary Fund's New Arrangements to Borrow. The bill, however, does not include the $14,500 million the Clinton administration requested for an increased IMF quota contribution. The bill calls on the Group of Seven major industrial countries to direct the IMF to institute certain major reforms. The bill now has to be voted on by the full House of Representatives. The Senate passed its version of the foreign aid bill last week. It differs from the House version, and includes the $14,500 million for the IMF. After the House takes action on the bill, a House-Senate conference committee will be appointed to produce a single compromise version that can be passed by both chambers, then sent to President Clinton for his signature. Following is the text of the Appropriations Committee's September 10 press release outlining the major provisions of its version of the foreign aid bill. (Note: In the following text, "billion" equals 1,000 million.) (begin text) RESPONSIBLY FUNDING TAXPAYERS' OVERSEAS INVESTMENTS Full Committee Approves Foreign Operations Spending Bill Fiscal year 1999 (FY99) Chairman's Mark: $16.2 billion (includes $3.4 billion for IMF New Arrangements to Borrow and $352 million for multi-lateral bank arrearages) FY99 President's Request: $31.97 billion (includes $17.9 billion for IMF and $509 million for multi-lateral bank arrearages) FY98 Enacted Levels: $13.15 billion Major Amendments Approved in Full Committee: - (Livingston amendment): Repeals Section 907 of the FREEDOM Support Act, thereby removing U.S. aid restrictions with Azerbaijan. - (Livingston report language): "The managers strongly support the efforts of the Overseas Private Investment Corporation to encourage development of Caspian oil and gas pipelines as key components of an East-West transport corridor ..." - (Livingston amendment): Prohibits all funding for North Korea and KEDO (Korean Peninsula Energy Development Organization). This will not affect humanitarian and food assistance. - (Frelinghuysen report language): Includes language regarding the trial in the Netherlands of the suspects indicted in the bombing of Pan Am Flight 103. - (Wicker amendment): Prohibits federal funding to international organizations that perform abortions, but allows for a Presidential waiver to international organizations using their own funds. If the waiver is applied, however, the $385 million available is reduced to $356 million. Also prohibits funding for organizations that lobby on abortion. Coping with the Asian Crisis: - Provides a $62.5 million increase for the Export-Import Bank in order to protect American job interests abroad, bringing FY99 funding to $745.5 million, $62.5 million below the President's request. - Provides a $60 million increase for the Asian Development Fund, bringing FY99 funding to $210 million, $40 million below the President's request. Funding and Reforming Critical IMF Elements: - Provides the President's requested level of $3.4 billion for the IMF's New Arrangements to Borrow. Does not fund the President's $14.5 billion request for the U.S. quota payment to the IMF. - Contains the following reforms: Group of 7 industrial nations must agree to direct IMF to institute three major reforms: 1. Compliance with the terms of international trade agreements of which the borrowing country is a signatory; 2. Elimination of the practice or policy of government directed lending on non-commercial terms or provision of market distorting subsidies to favored industries, enterprises, parties, or institutions; and 3. Guarantee of nondiscriminatory treatment in insolvency proceedings between domestic and foreign creditors, and for debtors and other concerned persons. - Money for the NAB is conditioned upon Congress' approval of a certificate from the Secretary of Treasury and the Chairman of the Federal Reserve stating that the bank has agreed to release edited versions of its board minutes and major documents. - Provides for an end to subsidized interest rates for regular borrowers. Beginning a Multi-Year Phase Out of Economic Assistance to Israel and Egypt: - Provides a net savings of $100 million to American taxpayers. - Israel's economic assistance is reduced from $1.2 billion in FY98 to $1.08 billion in FY99. The President's request was the same as FY98. - Israel's military assistance is increased from $1.8 billion in FY98 to $1.86 billion in FY99. The President's request was the same as FY98. - Egypt's economic assistance is decreased from $815 million in FY98 to $775 million in FY99. The President's request was the same as FY98. - Egypt's military assistance is level funded at $1.3 billion in FY99. The President's request was the same as FY98. Major Cuts/Reforms: - Former States of the Soviet Union funding is reduced $180 million below FY98 and $335 million below the President's request, bringing FY99 funding to $590 million. - For the first time in more than twenty years, no funding is provided for the Foreign Military Financing Program for Turkey and Greece. - Voluntary peacekeeping operations are funded at $19 million below the President's request, bringing FY99 funding to $62 million, $13.5 million below FY98. Major Initiatives: - Restores the President's $47 million cut to the Child Survival and Disease Programs Fund to the FY98 level of $650 million. - Increases UNICEF $5 million over FY98 and the President's request, bringing FY99 to $105 million. - Reserves $194.7 million of the Newly Independent States funds for the Southern Caucasus region, making $77.9 million available as American share of international effort to restore peace between Armenia and its neighbors. - Withholds 50 percent of the assistance to the government of Russia unless it ends nuclear and ballistic missile cooperation with Iran; includes Presidential waiver. - Limits the amount of assistance to any former Soviet Republic to $147.5 million. - Increases International Narcotics Control $45 million over last year's levels, bringing FY99 to $275 million (same as the President's request). - Increases the Nonproliferation, anti-terrorism, demining account $19 million over FY98, bringing FY99 to $152 million, $64 million below the President's request. - Freezes the International Fund for Ireland at $19.6 million, the same as FY98. Preservations and Other Items of Interest: - Increases the Peace Corps $8 million over FY98, bringing FY99 funding to $230 million, $40.3 million below the President's request. - Increases UNICEF $5 million over FY98, bringing FY99 to $105 million 5 percent more than the President's request. - Funds the Agency for International Development at $2.517 billion for FY99, $32 million below the President's request. - Funds the Trade and Development Agency at $41.5 million for FY99, the same as FY98. - Funds the International Military Education and Training (IMET) program at $50 million for FY99, the same as FY98 and the President's request. - Funds the European Bank at $35.8 million for FY99, the same as FY98 and the President's request. (end text)
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