House Appropriations Committee report in explanation of H.R. 2764, making appropriations for the Department of State, foreign operations, and related programs, for the fiscal year ending September 30, 2008, and for other purposes

Bill Number: 
House Report 110-197
Bill Status: 
Bill Location: 
Date of Last Action: 
Monday, June 18, 2007
Relevant Text: 

35-983

110TH CONGRESS

Report

HOUSE OF REPRESENTATIVES

1st Session

110-197

--STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS APPROPRIATIONS BILL, 2008

June 18, 2007- Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

Mrs. LOWEY, from the Committee on Appropriations, submitted the following

R E P O R T

together with

MINORITY VIEWS

[To accompany H.R. 2764]

The Committee on Appropriations submits the following report in explanation of the accompanying bill making appropriations for the Department of State, foreign operations, and related programs, for the fiscal year ending September 30, 2008, and for other purposes.

TITLE I--DEPARTMENT OF STATE AND RELATED AGENCY

DEPARTMENT OF STATE

ADMINISTRATION OF FOREIGN AFFAIRS

PROTECTION OF FOREIGN MISSIONS AND OFFICIALS

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Fiscal year 2007 enacted level $9,270,000

Fiscal year 2008 request 18,000,000

Committee recommendation 28,000,000

Change from request 10,000,000

Change from enacted level 18,730,000

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The Committee recommends a total of $28,000,000 for the Protection of Foreign Missions and Officials account, which is $18,730,000 above the fiscal year 2007 level and $10,000,000 above the request.

The increase above the request is to provide reimbursement to jurisdictions with certifiable costs associated with the Organization of American States' (OAS) 35th General Assembly in June 2005. Funds also are available to reimburse eligible costs of providing security protection to diplomatic delegations to the United Nations and other international organizations that were incurred during 2002-2007 and where annual appropriations under this account were not sufficient to fully reimburse all certified expenses.

INTERNATIONAL ORGANIZATIONS

CONTRIBUTIONS TO INTERNATIONAL ORGANIZATIONS

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Fiscal year 2007 enacted level $1,151,318,000

Fiscal year 2008 request 1,354,400,000

Committee recommendation 1,354,400,000

Change from request 0

Change from enacted level 203,082,000

Pan American Health Organization (PAHO)

The Committee continues to support the work done by PAHO. PAHO has taken the lead in health issues in the Western Hemisphere, including border health concerns, diabetes, emerging diseases, and other health issues that have an impact on citizens of the United States and all citizens of the Americas. The Committee recommendation includes full requested funding for the United States assessment for PAHO in fiscal year 2008.

CONTRIBUTIONS FOR INTERNATIONAL PEACEKEEPING ACTIVITIES

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Fiscal year 2007 enacted level $1,135,275,000

Fiscal year 2008 request 1,107,000,000

Committee recommendation 1,302,000,000

Change from request 195,000,000

Change from enacted level 166,725,000

Haiti

The Committee urges the Secretary of State to provide significantly greater support for the hiring of Haitian-American and other Creole- or French-speaking police officers than it presently does to enhance the 50 Americans currently serving within the UN police contingent of the United Nations Stabilization Mission in Haiti (MINUSTAH). The Committee also urges the Secretary of State to dispatch an additional 100 United States security professionals, up to the authorized level of 150, for the UN civilian police with emphasis on expertise in counter narcotics, vetting tactics and other areas that are compatible with Haiti's specific needs and MINUSTAH's efforts in Haiti.

INTERNATIONAL COMMISSIONS

INTERNATIONAL BOUNDARY AND WATER COMMISSION, UNITED STATES AND MEXICO

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Fiscal year 2007 enacted level $32,950,000

Fiscal year 2008 request 102,155,000

Committee recommendation 46,155,000

Change from request -56,000,000

Change from enacted level 13,205,000

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The Committee recommendation includes a total of $46,155,000 for the International Boundary and Water Commission, United States and Mexico (IBWC), which is $13,205,000 above the fiscal year 2007 level and $56,000,000 below the request. The amount provided includes $30,430,000 for Salaries and Expenses and $15,725,000 for construction. The recommendation includes language authorizing not to exceed $6,000 for representation expenses, as requested.

INTERNATIONAL BROADCASTING OPERATIONS

The Committee recommendation includes $671,632,000 to carry out United States International Broadcasting Operations, which is $32,506,000 above the fiscal year 2007 level and $14,155,000 above the request, after factoring in the seperate request for Cuba broadcasting. This account funds the operating and engineering costs of Voice of America, Radio Free Europe/Radio Liberty, Radio Free Asia, the Middle East Broadcasting Networks and the Broadcasting Board of Governors (BBG). The recommendation also includes funding for Broadcasting to Cuba under this account. In the request, this funding was proposed under a separate account.

Broadcasting to Cuba

The Committee recommendation includes $33,681,000 for radio and television broadcasting to Cuba, which is the same as the fiscal year 2007 level and $5,019,000 below the request.

TITLE III--BILATERAL ECONOMIC ASSISTANCE

FUNDS APPROPRIATED TO THE PRESIDENT

UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT

CHILD SURVIVAL AND HEALTH PROGRAMS FUND

(INCLUDING TRANSFER OF FUNDS)

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Fiscal year 2007 enacted level $1,718,150,000

Fiscal year 2008 request 1,564,279,000

Committee recommendation 1,955,150,000

Change from request 390,871,000

Change from enacted level 237,000,000

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Africa and Latin America

The Committee is concerned that the proposed fiscal year 2008 budget shifts funds away from Africa and Latin America. The Committee is aware that these regions are receiving significant funding due to the expansion of the Global AIDS Initiative. The Committee does not believe that this should result in a reduced level of funding for child survival and other health programs. The Committee directs USAID to program fiscal year 2008 resources for these regions only after consultation with the Committees on Appropriations.

DEVELOPMENT ASSISTANCE

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Fiscal year 2007 enacted level $1,508,760,000

Fiscal year 2008 request 1,041,248,000

Committee recommendation 1,733,760,000

Change from request 692,512,000

Change from enacted level 225,000,000

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Scholarship program in Latin America

The Committee believes that the Cooperative Association of States for Scholarships (CASS) program continues to show success and is a very important investment. The Committee encourages USAID to consider the work of the Center for Intercultural Education and Development in fiscal year 2008 and to consider expanding this program in East and North Africa in the coming year.

Western Hemisphere programs

The Committee is concerned that the President's proposed budget recommended a significant cut to country programs in the Western Hemisphere. The Committee recommendation therefore includes an increase of $56,000,000 in order to restore country program funding levels in this region to at least the fiscal year 2006 levels.

OTHER BILATERAL ECONOMIC ASSISTANCE

ECONOMIC SUPPORT FUND

(INCLUDING TRANSFER OF FUNDS)

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Fiscal year 2007 enacted level $2,455,010,000

Fiscal year 2008 request 3,319,567,000

Committee recommendation 2,656,506,000

Change from request -663,061,000

Change from enacted level -201,496,000

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The Committee recommendation includes a total of $2,656,506,000 for the Economic Support Fund (ESF), which is $201,496,000 below the fiscal year 2007 level and $663,061,000 below the request, excluding emergency supplemental appropriations.

ECONOMIC SUPPORT FUND

[In thousands]

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Fiscal year 2008 request Committee recommendation

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Africa:

Burundi $0 $3,000

Democratic Republic of Congo 29,000 19,000

Ethiopia 5,000 3,000

Kenya 0 4,000

Liberia 73,545 43,545

Sierra Leone (Special Court) 0 13,000

South Africa 10,000 5,000

Sudan 245,900 101,700

Tanzania 3,600 3,000

Africa Regional 7,250 6,000

Subtotal--Africa 374,295 201,245

East Asia and the Pacific:

Burma 2,790 6,000

Cambodia 12,170 12,170

East Timor 8,640 18,000

Indonesia 60,000 55,000

Laos 470 500

Mongolia 6,200 6,200

North Korea 2,000 0

Philippines 25,996 20,000

Taiwan 200 0

Tibet 2,000 5,000

Vietnam 5,700 5,000

Other Asia 26,560 18,000

Subtotal--East Asia and the Pacific 152,726 145,870

Europe and Eurasia:

Cyprus 11,000 11,000

Irish Visa Program 1,000 1,000

Turkey 850 0

Subtotal--Europe and Eurasia 12,850 12,000

Near East:

Algeria 1,165 0

Bahrain 1,100 0

Egypt 415,000 415,000

Iran 75,000 25,000

Iraq 298,000 0

Jordan 263,547 263,547

Kuwait 470 0

Lebanon 42,100 45,000

Libya 500 0

Morocco 15,500 16,500

Tunisia 200 2,000

West Bank/Gaza 63,500 63,500

Yemen 8,450 8,450

Middle East Partnership Initiative 75,000 55,000

Middle East Regional Cooperation 3,800 5,000

Other Near East 0 5,000

Subtotal--Near East 1,263,332 903,997

South Asia:

Afghanistan 693,000 543,000

India 3,000

Pakistan 382,900 350,000

South Asia Regional 720 1,500

Subtotal--South Asia 1,076,620 897,500

Western Hemisphere:

Bolivia 17,000 17,000

Colombia 139,500 218,500

Cuba 45,700 9,000

Dominican Republic 10,000 8,000

Ecuador 6,000 6,000

Guatemala 10,000 12,000

Haiti 63,394 63,394

Mexico 14,000 12,000

Peru 30,000 30,000

Trade Capacity Building 0 10,000

Other Western Hemisphere 28,150 20,000

Subtotal--Western Hemisphere 363,744 405,894

Global:

Asia-Pacific Partnership 26,500 5,000

Human Rights and Democracy Fund 35,000 40,000

OES Initiative 7,800 0

Wheelchairs 0 5,000

Reconciliation Programs 0 23,000

Trafficking in Persons 6,700 14,000

Extractive Industries Transparency 0 1,000

House Democracy Assistance Program 0 2,000

Subtotal--Global 76,000 90,000

Total ESF: 3,319,567 2,656,506

Western Hemisphere programs

The Committee continues to be concerned about falling assistance levels to Latin America. The fiscal year 2008 budget request for foreign operations to Latin America decreases by 8.9 percent. The administration shifted funding from one account to another and placed an emphasis on free trade, to the exclusion of social issues and policies that would help solve the region's widespread poverty and unequal distribution of wealth. The Committee believes that USAID must make a concerted effort to attack the underlying and pervasive poverty that is the root of the problems in the region.

Colombia

The Committee acknowledges that Colombia is a vital partner and ally of the United States. The Committee recognizes the strategic importance of Colombia, and therefore the Committee has taken the significant step to `restructure' the way it provides assistance to Colombia. The Committee recommendation includes $218,500,000 for ESF programs in Colombia, which is $79,000,000 above the request. The Committee includes language in the Colombia general provision (section 649) that these funds be apportioned directly to USAID for continued support of new and ongoing development programs, with permissive language under the ESF heading allowing funds to be transferred to the Development Assistance (DA) account as necessary to accomplish programs designed for specific assistance programs. The Committee directs USAID to develop a plan to bring a more comprehensive rural development strategy that extends the reach of government, services and livelihoods into the rural areas.

The Committee believes that USAID should provide support for alternative crop programs such as cocoa diversification projects, coffee, hearts of palm and other high value crops in Colombia and strengthen the ability of farmers to form cooperatives and improve their access to markets.

The Committee expects that the increased resources provided for Colombia will result in an increase of funding for internally displaced persons (IDP) organizations such as civil society organization, and for such organizations in municipalities and departments that have a high IDP population.

Guatemala

The Committee recommendation includes $12,000,000 for ESF programs in Guatemala which is $2,000,000 above the request. The Committee is gravely concerned with reports detailing the frequency of human rights abuses against girls and women. According to human rights groups following this issue, more than 2500 women and girls have been killed since 2001. The Committee notes that the Guatemalan legal system has been slow to proceed and bring the responsible parties to justice. The Committee recommends that $1,000,000 be made available for programs and activities to combat crimes of violence specifically targeting women and girls, and to support initiatives for legal reform to bring domestic Guatemalan law in line with international standards on violence and discrimination against women.

Bolivia

The Committee recommendation includes $17,000,000 for ESF programs in Bolivia, which is equal to the request. The Committee notes that the Administration has shifted alternative development assistance, formerly funded within the Andean Counterdrug Initiative (ACI), to ESF. The Committee further notes that the shifting of accounts was not accompanied with a comparable increase in the request. The Committee expects that these funds will be allocated to USAID for continued support of ongoing programs.

Ecuador

The Committee recommendation includes $6,000,000 for ESF programs in Ecuador, which is the same as the request. The Committee notes that the Administration has shifted alternative development assistance, formerly funded within the Andean Counterdrug Initiative (ACI), to ESF. The Committee further notes that the shifting of accounts was not accompanied with a comparable increase in the request. The Committee expects that these funds will be allocated to USAID for continued support of ongoing programs.

Peru

The Committee recommendation includes $30,000,000 for ESF programs in Peru, which is the same as to the request. The Committee notes that the Administration has shifted alternative development assistance, formerly funded within the Andean Counterdrug Initiative (ACI), to ESF. The Committee further notes that the shifting of accounts was not accompanied with a comparable increase in the request. The Committee expects that these funds will be allocated to USAID for continued support of ongoing programs.

Haiti

The Committee believes that the development of an effective, autonomous legislative branch of government in Haiti is critical to that country's democratization and stability. The Committee is encouraged by the free and fair elections of the Haitian Parliament in April 2006 and by the Parliament's work on critical issues such as justice sector reform. However, the Committee is concerned by the lack of basic infrastructure needed to enable the Parliament to effectively carry out its work, most notably the lack of space within which to hold public hearings, house professional staff, and establish key legislative resources such as a legislative library and archives. While the Committee typically prefers to direct U.S. foreign assistance to supporting the development of capabilities and institutions rather than the procurement of physical space, the Committee finds that, in this case, physical space appears to be the singularly pressing need to enable the development of the Parliament as an institution. The Committee directs the Secretary to review the Parliament's current facility needs and to consider granting an exception to current Department policy and allow a portion of the $23,900,000 requested for activities to improve governance in Haiti to be used by the Government of Haiti to purchase the U.S. Embassy property adjacent to the Haitian Parliament for transer to, and ownership by, the Haitian Parliament.

Cuba

The Committee recognizes the challenges to implementing, monitoring, and evaluating democracy assistance programs in Cuba. The Committee notes with great concern the November, 2006 GAO report (GAO-07-147) which identifies problems with internal controls--both over the awarding of Cuba program grants and oversight of grantees--and that grant funds are being used properly and that grantees are in compliance with applicable laws and regulations. The Committee is concerned with the efficacy of this program and therefore provides not more than $9,000,000 for ESF programs in Cuba, which is $36,700,000 below the request and requires a spending plan and strategy for how these funds will be utilized prior to obligation of any funds. Furthermore, the Committee is concerned that communication between the Department of State and USAID is ineffective and lacking with regard to grantees' in-country activities. The Committee encourages the Secretary of State and USAID Administrator to work jointly to improve communication between responsible State and USAID bureaus and offices and urges the USAID Administrator to work to improve USAID's management and oversight of grantees.

INDEPENDENT AGENCIES

INTER-AMERICAN FOUNDATION

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Fiscal year 2007 enacted level $19,305,000

Fiscal year 2008 request 19,000,000

Committee recommendation 19,000,000

Change from request 0

Change from enacted level -305,000

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The Committee recommends $19,000,000 for the Inter-American Foundation (IAF), which is the same as the request and $305,000 below the fiscal year 2007 level. The Committee notes that the IAF has $300,000 in carry over balances

INTERNATIONAL NARCOTICS CONTROL AND LAW ENFORCEMENT

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Fiscal year 2007 enacted level $472,616,000

Fiscal year 2008 request 634,600,000

Committee recommendation 568,475,000

Change from request -66,125,000

Change from enacted level 95,859,000

NARCOTICS, GANGS, TERRORISM AND CRIME

Criminal youth gangs

The Committee provides not less than $8,000,000 for programs to combat transnational crime and criminal youth gangs, which is $3,000,000 above the request. The Committee notes with alarm the rise in violent crime in Central American countries where the `mara' or gang problem is overwhelming the law enforcement capabilities of many governments. The Committee is concerned that collaboration between criminal groups and drug traffickers, underfunded and sometimes corrupt police forces, and deportations from the United States are contributing to this problem. The Committee encourages the Administration to reevaluate current policy with regard to the `maras' and recommends that the Department of State and USAID report back to the Committee within 90 days after enactment of this Act regarding steps taken by their agencies that will reduce criminal gang activity in Central America and have an immediate impact of the daily lives of those citizens, especially the poor, who are the most frequent victims of violent crime.

INL anti-crime programs

Organized crime and terrorist groups throughout the world have long used narcotics as a means to generate revenues to support armed conflict and spread turmoil. The Committee continues to support a strong United States counternarcotics assistance program in order to protect United States communities from the ravages of drugs, but increasingly to deny drug profits. The Committee recommendation includes $12,000,000 for anti-crime programs, which is $2,000,000 below the request.

International demand reduction programs

The Committee strongly supports demand reduction programs. The Committee directs that within the funds provided for International Narcotics Control and Law Enforcement, $12,000,000 shall be provided for the drug demand reduction program. Such funding will be available to reduce worldwide drug abuse. The Committee commends the Department of State on their efforts, specifically with regard to activities undertaken in Afghanistan and Central America. The Committee encourages the Department to expand the program into more communities.

International organizations (IO)

The Committee recommendation includes $4,000,000 for international organizations, which is $1,500,000 below the request. The Committee notes that the Organization of American States is receiving an additional $3,000,000 in assistance provided within the Andean Counterdrug Initiative (ACI) account in fiscal year 2008.

Inter-agency interdiction efforts

The Committee directs the Bureau of International Narcotics and Law Enforcement Affairs at the Department of State to report to the Committees on Appropriations not later than 45 days from the date of enactment of this Act on the use of aerial assets to include fixed and rotary wing aircraft in coordination with and in support of Drug Enforcement Administration (DEA) counternarcotics operations in Colombia and Afghanistan.

Police training

The Committee recognizes that the United States plays an important role in training and professionalizing foreign police around the world. United States training promotes high quality, standardized civilian police, justice sector and corrections training in operating procedures, code of conduct, ethics standards, and human and civil rights. The Committee notes that such training is critical to eliminating the mistreatment and violence that occurs to those in need of protection. Furthermore, the Committee is gravely concerned with the treatment of women and girls and urges the Department of State to focus training on how to prevent and respond to gender-based violence against women and girls. The Committee directs the Secretary of State to report to the Committees on Appropriations not later than March 1, 2008 on efforts to provide United States assistance to foreign police to address gender-based violence. This report should include: (1) an overview of all the Department's efforts to develop and provide such assistance to foreign police on gender-based violence; (2) information on the curriculum/training developed to provide or incorporate into said assistance; (3) the specific types of United States assistance provided to foreign police forces; (4) the number of countries/security forces that have received training and the cost of these trainings; and (5) the challenges encountered in pursuing this policy.

Program development and support (PD&S)

The Committee recommendation includes up to $15,000,000 for PD&S, which is $4,550,000 below the request. The reduction is commensurate with the overall reduction to the INCLE account. Further the Committee is concerned that the Department of State has not provided an overall accounting of PD&S for all activities and directs the Department of State not later than 45 days after enactment of this Act to provide a report on all PD&S for fiscal years 2006, 2007 and 2008. This report shall include a detailed listing of activities associated with the expenditure of such funds and any possible overlap of resources from other accounts such as the Andean Counterdrug Initiative and supplemental funding.

WESTERN HEMISPHERE

The Committee recommendation includes $71,535,000 in INCLE funding for the Western Hemisphere region, which is $21,005,000 above the request. The Committee is concerned that the Administration continues to pledge help to our neighbors in the Americas, but the budget request fails to reflect these pledges. The Committee notes that assistance as a whole to the region has decreased by 8.9 percent in the request. The Committee is concerned that this downward funding trend will be seen as the underlying precept of President Bush's `revolution in expectations.' The Committee is dedicated to fundamentally transforming the security agenda of the Americas. The funding provided in the INCLE account is a vital tool in confronting nontraditional, multidimensional threats to security and prosperity such as organized crime, terrorism and gang/drug related activities. The Committee is gravely concerned that the Administration's request is a retrenchment of United States diplomatic efforts and will inevitably cause a lessening of our political and commercial engagement in the region. The Committee understands the need to secure and strengthen our relationship with the region and therefore has increased the funding levels in the INCLE account for this region by 11 percent over the fiscal year 2006 level.

Colombia

The Committee recommendation is part of a bill wide strategy to restructure the way the United States provides assistance to Colombia. The Committee has redistributed assistance to help the Colombian government focus on justice and rule of law as well as address the underlying and pervasive poverty that is the root of many of the problems in Colombia as well as the region.

The recommendation moves Rule of Law programs (except funding for judicial reforms) from the Andean Counterdrug Initiative (ACI) account to the INCLE account. The bill provides $22,250,000 for Rule of Law programs in Colombia. Without funding for judicial reform which is funded within the Economic Support Fund (ESF) account, this appears to be a small increase of $407,000 from the fiscal year 2008 budget request. However, when human rights activities and judicial reform programs in Colombia funded in ESF are included, the Committee has funded rule of law programs for Colombia at a total level of $38,750,000, which is $10,907,000 above the request.

Mexico

The Committee recommendation includes $27,500,000 for programs in Mexico, which is $316,000 below the request.

The Committee remains concerned about increasing instability along the Texas/Mexico border, including illegal trafficking of drugs, arms, cash, and people. The Committee continues to monitor reports that members of drug cartels have crossed the border wearing Mexican military uniforms and carrying and firing assault weapons. The Committee requests that the Department of State consult with the Committee on the use of funds made available for Mexico under `INCLE' to ensure such funds are used only to support the fight against human, drug, and weapon smuggling. The Committee directs the Department of State to work with the Department of Homeland Security to obtain reports of investigations into incursions and to make those available to the Committee.

~Violence against women in Mexico

The Committee is concerned about violence against women in Mexico. The Committee encourages the Department of State to support ongoing efforts to identify unknown women murder victims in Ciudad Juarez and Chihuahua, Mexico through forensic analysis, including DNA testing, conducted by independent, impartial experts already working in the state who are sensitive to the special needs and concerns of the victims' families, as well as support for efforts to encourage families from Chihuahua and other Mexican states who have women or girls missing in their families to report these cases to the Attorney General's office of Chihuahua and the federal Special Prosecutor's Office for violent crimes against women. ~

Dominican Republic

The Committee recommendation includes $1,000,000 in INCLE funding for the Dominican Republic, which is $150,000 below the request.

Bolivia

The Committee recommendation includes $500,000 in INCLE funding for Bolivia, which is $100,000 below the request.

Haiti

The Committee is encouraged that the political situation in Haiti seems to have stabilized, and gang violence seems to have decreased. Yet the Committee is gravely concerned that Haiti has become a major transshipment point for drugs that are shipped from Colombia via Venezuela. Additionally, Haiti does not seem to be any more economically viable as a result of hundreds of millions of dollars in aid it has received from the United States and other nations.

Guatemala

The Committee recommendation includes $4,000,000 in INCLE funding for Guatemala, which is $1,320,000 below the request.

Jamaica

The Committee recommendation includes $1,000,000 in INCLE funding for Jamaica, which is $9,000 below the request.

Western hemisphere regional

The Committee recommendation includes $1,000,000 in INCLE funding for the western hemisphere regional, which is $1,000,000 above the request.

Eastern Caribbean

The Committee recommendation includes $250,000 in INCLE funding for the eastern Caribbean, which is $250,000 below the request.

ANDEAN COUNTERDRUG INITIATIVE

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Fiscal year 2007 enacted level $721,500,000

Fiscal year 2008 request 442,812,000

Committee recommendation 312,460,000

Change from request -130,352,000

Change from enacted level -409,040,000

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The Committee recommendation includes $312,460,000 for the Andean Counterdrug Initiative, which is $130,352,000 below the request.

The Andean Counterdrug Initiative account is the continuation of an initial three-year counterdrug assistance effort, which has primarily funded United States assistance to Colombia and to a lesser extend other regional follow-on activities since 2000. This assistance is part of an ongoing, comprehensive, regional effort to stem the flow of drugs from the Andes into the United States and to support regional stability. At first glance, the amount provided in this account for fiscal year 2008 would appear to be a cut of approximately 29 percent. In reality this is not the case, as the Committee has not reduced its commitment to the Andean Region, but rather has redistributed assistance in a number of ways. For example, in fiscal year 2008 the funds to support economic development, alternative development programs and democratic institution building efforts in the countries of Latin America, including: Colombia, Peru, Bolivia, Ecuador, Brazil, Venezuela, and Panama will be funded under the International Narcotics Control and Law Enforcement (INCLE) and Economic Support Fund (ESF) accounts instead of from this account; if these funds were added back to the ACI account, the overall cut would be less than 5 percent.

The Committee has embraced and enhanced the restructuring of the ACI account as proposed by the Administration in the fiscal year 2008 request in order to begin `normalizing' our relationship with Colombia and the other countries of the region. To begin this `normalization', the Committee has moved $79,000,000 from the ACI account to the ESF account. This is in addition to the $192,500,000 carried within the budget request for a total of $271,500,000 in ESF of funds formerly funded within the ACI account. The Committee has also transferred $22,250,000 of funding out of the ACI account for rule of law activities and moved these funds to the INCLE account. The Committee notes that this is a total of $293,750,000 of funding that was previously funded within the ACI account.

The Committee continues the requirement in the bill that USAID provide to the Committees on Appropriations not later than 45 days after the date of the enactment of this Act and prior to the initial obligation of funds appropriated under this heading, a report on the proposed uses of all funds under this heading on a country-by-country basis for each proposed program, project, or activity.

The Committee requests that USAID submit to the Committees on Appropriations a semi-annual report with respect to the Andean Counterdrug Initiative, including those funds for Colombia in ESF and INCLE. Each report shall include an accounting of all aircraft, vehicles, boats and lethal equipment (other than ammunition) transferred to the militaries or police of any nation with funds made available under this heading. Additionally, the Committee requires that the personnel cap and Plan Colombian reports as required in the fiscal year 2000 emergency supplemental also be submitted to the Committees on the Appropriations.

A limitation of $17,000,000 is recommended for administrative expenses for the Department of State and $7,800,000 for USAID.

Funding by Country and Activity

From funds appropriated under this heading, the Committee directs the following amounts for each activity by country:

ANDEAN COUNTERDRUG INITIATIVE

[$ in thousands]

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FY 2008 request Committee recommendation

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Bolivia:

Bolivia--Alternative Development/Institution Building [17,000] 1

Bolivia--Interdiction 30,000 30,000

Subtotal--Bolivia 30,000 30,000

Colombia:

Colombia--Alternative Development/Institution Building [139,500] 1

Colombia--Interdiction 366,968 236,616

Subtotal--Colombia 366,968 236,616

Ecuador:

Ecuador--Alternative Development/Institution Building [6,000] 1

Ecuador--Interdiction 7,000 7,000

Subtotal--Ecuador 7,000 7,000

Peru:

Peru--Alternative Development/Institution Building [30,000] 1

Peru--Interdiction 36,844 36,844

Subtotal--Peru 36,844 36,844

Brazil 1,000 1,000

Panama 1,000 1,000

Critical Flight Safety Program [50,000] 2 [39,300]

Administrative Expenses [17,000] [17,000]

Total moved to ESF 192,500 271,500

Total with ESF transfer 442,812 312,460

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Colombia

Since fiscal year 2000, funding for Colombia provided by this Committee totals more than $4,300,000,000. Approximately 76 percent of that amount--$3,300,000,000, over one million dollars per day for the past seven years--has gone to the Colombian security forces. The Committee observes that the President's fiscal year 2008 budget summary for the National Drug Control Strategy indicates that the primary mission for the Department of State's Bureau of International Narcotics and Law Enforcement Affairs (INL) is to reduce the entry of illegal drugs into the United States, yet the Committee is disappointed to note that since the beginning of Plan Colombia in 2000 the amount of hectares of coca cultivated in Colombia has gone up, not down and the area involved in illicit drug production has increased by over 42 percent. Furthermore, the Committee observes that the Justice Department's 2007 National Drug Threat Assessment stated that there have been no sustained cocaine shortages or indications of stretched supplies in the United States. An analysis performed for the Office of National Drug Control Policy (ONDCP) by the RAND Corporation states that the cocaine supply and availability remains robust. This fact is reinforced by estimates of cocaine's low retail-level price and high level of product purity within the United States. The Committee is concerned that the perennial goal of reducing Colombia's cultivation, processing and distribution to restrict supplies enough to drive up prices and diminish purity has not worked and the drug economy continues to grow--further weakening the fabric of Colombian society. The Committee notes that this is now year eight of an ever more evolving multi-year plan. This program is not working and the Administration's fiscal year 2008 request for Colombia is virtually identical to previous requests, which contradicts assurances that the Administration has provided to Congress over the years that the social component to Colombian aid would be significantly increased and that gradual `Colombianization' of the program would take effect.

The Committee recommendation includes $236,616,000 for counterdrug activities for Colombia, which is $130,352,000 below the request. The Committee acknowledges that Colombia is a vital partner and ally of the United States. The Committee recognizes the strategic importance of Colombia, and therefore the Committee has taken the significant step to restructure the way it provides assistance to Colombia, for a number of reasons; specifically the Committee believes that there must be a concerted effort to attack the underlying and pervasive poverty that is the root of the problems in Colombia as well as the region.

The Committee would be remiss if it did not acknowledge the successes in Colombia and the measurable improvements that have resulted in the everyday lives of the Colombian people. Clearly, Colombia has made remarkable progress. The Committee believes it is time to fund assistance to Colombia through the same mechanisms used to fund other strategic partners. In a budget sense, that means providing funding for some of the activities, carried out by Plan Colombia, in the ESF and INCLE accounts. It is from these two accounts that the other United States strategic partners receive funding for similar activities. Of the funds transferred $218,500,000 will be funded under ESF and $22,250,000 will be funded under INCLE. The Committee observes that in total, Colombia will receive $530,608,000, which is $59,102,000 below the request, for activities once funded solely in the ACI account.

It is important, however, to note that the Committee continues to provide significant funding for Colombia through this account. The Committee provides, through the ACI account, a total of $236,616,000 for Colombia, of which $229,016,000 is for Interdiction and Eradication activities. This is $130,352,000 below the request. The Committee believes that it is important to maintain our efforts on this front. In addition, the Committee provides, within the ACI account, $39,300,000 for the Critical Flight Safety Program, which is a commensurate reduction to the package of assistance. The Committee directs the Secretary of State, in consultation with the Secretary of Defense, to report to the Committees on Appropriations no later than 60 days after enactment of this Act on the future, multiyear strategy of the United States assistance program to Colombia. The strategy should include all aspects of current and future United States assistance. In addition, the Committee directs the Director of Foreign Assistance to carefully review all Colombian activities to determine the most appropriate appropriation account for funding. Specifically, the fiscal year 2009 Congressional Budget Justification should provide, as appropriate, funding for Alternative Development in the `Development Assistance' and the `Economic Support Fund' accounts and, as appropriate, funding for Interdiction/Eradication in the `Foreign Military Financing' or the `International Narcotics Control and Law Enforcement' accounts.

The Committee continues to have grave concerns with the current aid package that emphasizes hard-side assistance over development assistance. The Committee remains concerned about the Administration's follow up program. The Committee's funding plan emphasizes a more balanced strategy shifting aid from the military and strengthening civilian governance, humanitarian assistance and rural development. The Committee also intends to initiate a plan to transition more of the military operations from the United States responsibility to the Colombian Government. The Committee expects a follow up strategy on steps to normalize funding for Colombia, similar to the approach used in this bill, which leads towards an eventual `nationalization' of the Colombian program. Within the funding provided in this bill the Committee intends to:

Realign the funding from a 76 percent (military/police aid)--24 percent (alternative development) closer to a 55 percent (military/police aid)--45 percent (alternative development) split.

Increase aid to strengthen the justice sector, providing more prosecutors and training for the Fiscalia and the Attorney General's office.

Increase the social component of aid to Colombia. Begin a gradual-managed `Colombianization' of the military package. Transition away from United States military operations to the government of Colombia, with a greater emphasis on interdiction rather than eradication.

Colombia/Human rights

The Committee is aware of reports alleging that the head of Colombia's army collaborated extensively with militias that the Department of State considers terrorist organizations, including a militia headed by one of the country's leading drug traffickers. The Committee is concerned about allegations that the Uribe government may be implicated in links between militias and top military, police and ministry officials and directs the Secretary of State to report to the Committees on Appropriations not later than 45 days from enactment of this Act on the veracity of such allegations. Understanding the contents of such a report may include sensitive or classified information, the Department of State may submit the report to the Committee in the form of a classified report.

Peru

The Committee directs that not less than $36,844,000 from funds under this heading shall be available for Peru. The Committee continues to believe that there is a very real danger of increased coca production and of drug trafficking through Peru through the so called `balloon effect' which can be seen in the increased number of hectares of coca production in Peru.

The most recent United States Government estimates are that there are 38,000 hectares of coca cultivation in Peru, including 4,000 hectares in new areas. There are reports that the coca farmers are becoming more violent and better organized and that terrorist organizations have openly identified with the coca growers. Of the funds provided for Peru in this account, $33,044,000 shall be available for Interdiction/Eradication. The Committee notes that $30,000,000 is provided for Alternative Development/Institution Building from within the ESF account. The Committee directs that not less than the amount provided in fiscal year 2006 in funding for Demand Reduction programs, previously funding with ACI funds, shall be available for programs in Peru within the INCLE account.

The Committee urges USAID to consider extending its agreement with The Field Museum of Chicago on the Cordillera Azul National Park project in central Peru after the original agreement period ends in 2007. The Committee understands that this alternative community development and conservation education project has already demonstrated effective use of ACI funds to prevent coca cultivation and urges USAID to consider entering into similar agreements elsewhere in the region.

Human rights

The Committee calls on the Department of State to ensure that all United States laws regarding human rights, including section 651 of this Act, are strictly applied in Colombia and each of the Andean nations. The Committee includes a general provision, modified from previous years, requiring that the Secretary of State certify that certain human rights conditions have been met before 35 percent of funds may be made available for assistance for the Colombian Armed Forces.

TITLE IV--MILITARY ASSISTANCE

FUNDS APPROPRIATED TO THE PRESIDENT

INTERNATIONAL MILITARY EDUCATION AND TRAINING

-------------------------------------------

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Fiscal year 2007 enacted level $85,877,000

Fiscal year 2008 request 89,500,000

Committee recommendation 85,076,000

Change from request -4,424,000

Change from enacted level -801,000

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The Committee recommends $85,076,000 for the International Military Education and Training (IMET) program, which is $4,424,000 below the request.

IMET is part of the overall United States security assistance program, and through it the United States Government provides training to predominantly military students from allied and friendly nations. The IMET program exposes students to the United States professional military establishment and the American way of life, including democratic values and rule of law, and respect for individual and human rights. In 1990, Congress directed the Department of Defense to establish a program within IMET--called Expanded-IMET or `E-IMET'--focused on training foreign civilian and military officials in three areas: managing and administering military establishments and budgets; creating and maintaining effective military judicial systems and military codes of conduct; and fostering greater respect for the principle of civilian control of the military.

Western Hemisphere Institute for Security Cooperation

The Committee has included a requirement that not later than 60 days after enactment of this Act, the Department of State submit a report addressing how the Western Hemisphere Institute for Security Cooperation program contributes to the promotion of human rights, respect for civilian authority and the rule of law, the establishment of legitimate judicial mechanisms for the military, and achieving the goal of right sizing military forces.

Guatemala

The Committee recommendation includes $500,000 for regular IMET programs for Guatemala. The Committee has included language that provides training, other than E-IMET, only for the Guatemalan Air Force and Navy and also provides IMET training for the Guatemalan Army Corps of Engineers entirely for training to improve disaster response capabilities and to participate in international peacekeeping operations. The Committee notes that this assistance may only be provided if the Secretary of State certifies that the Guatemalan Air Force, Navy and Army Corps of Engineers are respecting human rights, and that civilian judicial authorities are investigating and prosecuting, with the military's cooperation, military personnel who have been implicated in gross violations of human rights.

The Committee notes that providing regular IMET assistance for the Guatemalan Navy, Air Force and Army Corp of Engineers will provide the United States the ability to support the Government of Guatemala's efforts at defense reform, to control its borders against illicit drug trafficking, and to build its disaster response capability. Specifically, access to the full range of IMET courses, from professional military education to technical training, would help in the prevention of loss of military expertise due to attrition. The Committee is aware that the Guatemalan Air Force has received no technical training for 14 years. The Committee is concerned that the Government of Guatemala cannot maintain and field an effective force against narcotics trafficking and other illicit activity, or protect their borders without this training. IMET for the Guatemalan Navy is critical to enhancing its professional development, interdiction capability. Such training will strengthen the Guatemalan Navy's ability to counter narcotics trafficking along the riverine network, as well as along the Pacific and Atlantic coastlines that are increasingly heavy transit zones for drugs.

The Committee continues to monitor the Guatemalan Government's implementation of military reforms guaranteed by the 1996 Peace Accords. The Committee notes that since the signing of the 1996 Peace Accords, the Guatemalan Army has made some progress in reduction of force size and reduction of the military budget. The Committee acknowledges efforts by the Guatemalan military to deemphasize the internal security mission that was part in parcel of its training, doctrine, and education.

International training programs

The Committee understands that IMET assistance provides grants for military education and training to military and civilian students from foreign countries to help these countries move toward self-sufficiency in defending themselves. The Committee appreciates that in addition to providing training this program is intended to also expose foreign students to American democratic values, particularly military respect for civilian control of the military and the government and for internationally recognized standards of individual and human rights. With this in mind, the Committee is gravely concerned that there may be a significant overlap and duplication of efforts between the Department of State and the Department of Defense in the conduct of training the military of foreign nations. The Committee is concerned that the Counterterrorism Fellowship Program (CTFP) security cooperation program is in fact being used to circumvent Congressionally mandated restrictions with regard to human rights. The Committee directs the Department of State to produce a report on the differences between IMET and CTFP. In development of the report the Secretary of State shall collaborate with the Secretary of Defense and the Office of Management and Budget.

FOREIGN MILITARY FINANCING PROGRAM

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Fiscal year 2007 enacted level $4,550,800,000

Fiscal year 2008 request 4,536,000,000

Committee recommendation 4,509,236,000

Change from request -26,764,000

Change from enacted level -41,564,000

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The Committee recommends $4,509,236,000 for the Foreign Military Financing Program, which is $41,564,000 below the fiscal year 2007 level and $26,764,000 below the request.

The Foreign Military Financing (FMF) assistance program provides grants for the acquisition of United States defense equipment, services and training. The FMF program enables key allies and friendly nations to improve defensive capabilities, and fosters bilateral military relationships with the United States and interoperability with United States forces.

Unallocated flexibility fund

The Committee believes that foreign policy decisions rest with the Secretary of State as the principal advisor to the President on international discourse and proceedings and that this authority should not be delegated or abdicated by the Department of State nor superseded by other departments or agencies within the Executive branch. The Committee is very concerned that the Department of State has relinquished the responsibility to provide continuous supervision and general direction of sales of military articles and the provision of services and training. The Committee notes that pursuant to sections 1 and 2 of Chapter 1 of the Arms Export Control Act (Public Law 90-629) it remains the policy of the United States to enter into international arrangements with friendly countries which further the foreign policy objectives of the United States to achieve specific national defense goals and objectives of mutual concern. The Committee notes that it is the Secretary of State's responsibility to ensure all such sales and training shall only be approved when it is consistent with the foreign policy interests of the United States, as embodied in the Foreign Assistance Act of 1961, and to the extent the military requirement necessitates and the economic and financial capability of the recipient country allows--with particular regard being given to the proper balance among military assistance and economic assistance, particularly as to the impact the military assistance will have on programs of social and economic development in the recipient country. The Committee further notes the law states that under the direction of the President, the Secretary of State, taking into account other activities abroad, such as military operations, food and economic assistance, shall be responsible for the general direction of sales, leases, financing, cooperative projects, and exports, including determining whether there will be a sale to, or financing for, a country and the amount and scope thereof and whether such activities can and will be integrated with other United States actions which best serve the foreign policy of the United States. With this in mind, the Committee is concerned that the Department of Defense is seeking to make permanent and expand to other countries some security and foreign assistance programs know as `Section 1206 authority' which have traditionally been under the supervision of the Department of State and USAID under the pretext that `speed and efficiency' in training and equipping other countries provides the ability to keep pace with adversaries and act quickly when circumstances require change.

The Committee does not dispute that a failure to act rapidly and early increases the risk to vital United States security interests and likely brings about a need for direct United States intervention, but the Committee notes that the Departments of State and Defense have vastly different missions, and although they are not mutually exclusive they cannot be substituted for, or replace one another. Therefore, the Committee has included a new provision within the FMF account to allow the Secretary of State the flexibility to respond quickly to emerging needs and seize foreign policy opportunities. This proposed new flexibility fund is intended to assist the Secretary of State to quickly and effectively respond to contingencies in foreign countries or regions providing resources that can be drawn upon immediately to address a range of needs including training, procurement and capacity building of a foreign country's national military forces to conduct, among other activities, counterterrorist operations or participate in or support military and stability operations.

The Committee is therefore providing $5,000,000 of unallocated FMF which shall remain available until expended. The Committee intends that these funds should be coordinated through a joint Department of State and Department of Defense review. The Committee further directs that these funds shall not be used to replenish or backfill any funds that were specifically denied by the Committee. The Committee further expects that the Department of State will not prejudice the availability of these funds by pre-programming and use this new ability in the spirit it was provided. The Committee further expects that any use of these funds shall be subject to the regular notification procedures of the Committees on Appropriations.

WESTERN HEMISPHERE COUNTRIES

The Committee recommendation includes $62,750,000 for countries funded within the Western Hemisphere region, which is $20,050,000 below the request. The Committee is concerned that the Administration has dramatically pulled away from security assistance in the region. The following table compares the President's request for fiscal year 2008 and the Committee recommendation:

[In thousands]

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Country FY 2008 request Committee recommendation

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Bahamas $0 $80

Belize 0 100

Bolivia 0 25

Chile 0 300

Colombia 78,000 48,000

Dominican Republic 0 725

Ecuador 0 25

El Salvador 4,800 4,800

Guatemala 0 250

Guyana 0 75

Haiti 0 990

Honduras 0 500

Jamaica 0 500

Nicaragua 0 500

Panama 0 775

Peru 0 25

Suriname 0 80

Eastern Caribbean 0 1,000

Western Hemisphere 0 4,000

Subtotal--Western Hemisphere 82,800 62,750

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Argentina

The Committee recommendation does not include funding for Argentina as they are currently in default in payment of principal and interest of more than six months of a loan to the United States.

Colombia

The Committee is restructuring the assistance package. Colombia is a vital partner and ally of the United States. The Committee has grave concerns with the current aid package that overwhelmingly emphasizes hard-side assistance over development assistance. The Committee believes that any new Plan Colombia must be a more balanced strategy that shifts the aid from the military and strengthens civilian governance, humanitarian assistance and rural development and transitions more of the military operations to the government of Colombia. The Committee fully recognizes the strategic importance Colombia plays in the hemisphere and therefore instructs the Bureau of Political Military Affairs at the Department of State in consultation with the Bureau of Western Hemisphere Affairs at the Department of State, Southern Command and the Defense Security Cooperation Agency (DSCA) to provided a strategy no later than 120 days from enactment of this Act for reducing military assistance to Colombia in a gradual-managed approach to `Colombianization' of the military package. To this end the Committee recommendation includes $48,000,000 for the FMF program in Colombia, which is $30,000,000 below the request. The Committee instructs that within the funds provided the Riverine interdiction efforts (boats, bases, training and spare parts) should be fully funded at $12,250,000 and Naval aviation operations and interdiction/security operations at $5,000,000.

Guatemala

The Committee recommendation provides $250,000 for FMF programs for Guatemala and carries language to allow FMF for the Air Force and Navy to obtain spare parts only if the Secretary of State certifies that the Guatemalan Air Force, Navy and Army Corp of Engineers is respecting human rights, and civilian judicial authorities are investigating and prosecuting, with the military's cooperation, military personnel who have been implicated in gross violations of human rights and the Guatemala Congress has adopted and the Guatemalan President and Vice President have approved the International Commission Against Impunity in Guatemala (CICIG). The Committee understands that there is uncertainty as to whether the Guatemalan Congress will embrace and pass the International Commission Against Impunity in Guatemala (CICIG) to investigate clandestine groups who have made threats and carried out attacks against human rights defenders. The Committee has been informed that the Constitutional Court in Guatemala on May 10, 2007 issued an opinion that there is nothing unconstitutional about the CICIG agreement, and that it does not affect the autonomy of the Prosecutor General. Additionally, the Committee has been told that the court will rule that approval of the CICIG only requires a simple majority of 80 votes in the 158 member Guatemalan Congress. The Committee notes the Constitutional Court's ruling is a significant boost for CICIG, since it neutralizes the `constitutional' arguments of CICIG's opponents and it lowers the votes required for approval. The Committee notes that on Tuesday, May 22nd, 2007 the Guatemalan Congress held an extraordinary session during which the Constitutional Court's favorable opinion on the CICIG was formally presented to the Guatemalan Congress. The Committee is encouraged by this ruling and is hopeful that the Guatemalan Congress will approve the CICIG.

Access to FMF funding, particularly for spare parts for the Guatemalan Air Force and Navy, would be used to support the Government of Guatemala's efforts to combat transnational crime on the sea, on the rivers, and in the air. Guatemala is a strategic chokepoint for the flow of drugs and other threats towards the United States. Funding will also strengthen the Navy's ability to counter narcotics trafficking along the riverine network, as well as along the coastline of the Pacific and Atlantic sides that are increasingly heavy transit zones for drugs. Funding for FMF will also increase Guatemala's disaster response and peacekeeping capabilities. The Committee continues to call attention to the fact that the language still restricts funding from the Guatemala Army.

TITLE V--MULTILATERAL ECONOMIC ASSISTANCE

FUNDS APPROPRIATED TO THE PRESIDENT

INTERNATIONAL FINANCIAL INSTITUTIONS

CONTRIBUTION TO THE INTER-AMERICAN INVESTMENT CORPORATION

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Fiscal year 2007 enacted level $0

Fiscal year 2008 request 7,264,000

Committee recommendation 0

Change from request -7,264,000

Change from enacted level 0

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The Committee recommendation includes no funding for the Inter-American Investment Corporation. The Committee is encouraged that the IIC has adopted new operating policies and a new information disclosure policy. Since the United States is the largest single shareholder of the IIC, the Committee is pleased with the new transparency concerning information.

CONTRIBUTION TO THE ENTERPRISE FOR THE AMERICAS MULTILATERAL INVESTMENT FUND

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Fiscal year 2007 enacted level $1,725,000

Fiscal year 2008 request 29,232,000

Committee recommendation 25,000,000

Change from request -4,232,000

Change from enacted level 23,275,000

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The Committee recommendation includes $25,000,000 for the Enterprise for the Americas Multilateral Investment Fund, which is $23,275,000 above the fiscal year 2007 level and $4,232,000 below the request. The Committee recommendation includes $25,000,000 as the second of six installments of the MIF-II replenishment. The Committee is encouraged by the MIF's progress in improving transparency and adopting reforms. The Committee notes that MIF's plan to make public its Project Performance Monitoring Reports and Project Completion Reports is a first for a multilateral development institution.

TITLE VI--GENERAL PROVISIONS

The Committee recommends the following new and revised general provisions:

Sec. 648. `Haiti' funding levels have been modified.

Sec. 649. `Colombia' is a new general provision providing not more than $530,608,000 shall be provided for assistance to Colombia, of which $218,500,000 shall be directly apportioned to USAID for alternative development programs, of which $15,000,000 is for Afro-Colombian and indigenous communities and not more than $49,500,000 is available for military assistance and training and $22,250,000 is for rule of law programs funded under the heading `International Narcotics Control and Law Enforcement' (INCLE). The provision includes language formerly contained under the heading `Andean Counterdrug Initiative' (ACI) which extends the availability of funds provided for assistance for Colombia to support a unified campaign against narcotics trafficking, against activities by organizations designated as terrorist organizations, and to take actions to protect health and human welfare and adds language to the proviso to include `illegal self-defense groups' and `illegal security cooperatives'. It continues the language directing the Secretary of State to consult with the Committee if the implementation of the expanded authorities changes from that described in the May 2003 report to Congress.

Sec. 656. `Limitations on Assistance to Colombia' is similar to section 556 of the 2007 Act and is modified by changing the amount of assistance withheld from the Colombian armed forces prior to a written certification from the Secretary of State from 25 percent to 35 percent. The provision adds two new requirements: 1) that the Government of Colombia is ensuring that the armed forces are not violating land and property rights of indigenous and Afro-Colombian communities and 2) that civilian judicial authorities are making demonstrable progress in dismantling paramilitary networks. Additionally, funding for critical flight safety and or any alternative development programs are exempted from the withholding. Additionally, the term `paramilitary groups' is broadened to include successor groups that have demobilized but continue illegal operations.

Sec. 658. `Support of Peace Process and Demobilization in Colombia' is similar to the `Assistance for Demobilization and Disarmament of Former Irregular Combatants in Colombia' general provision contained in the fiscal year 2007 Act. Subsection (a) of the provision provides $23,000,000 in ESF for demobilization activities, subject to certain conditions. Subsection (b) provides $3,000,000 for the OAS mission to support peace in Colombia and retains language requiring consultation and notification before the obligation of funds for demobilization of paramilitaries.

Sec. 672. `Assistance to Colombia Law Enforcement to Combat Illegal Armed Groups' is a new provision which in subsection (a) withholds funds if the Secretary of State determines that Colombian law enforcement or intelligence agency have been infiltrated by illegal groups. Subsection (b) continues a provision carried in prior Acts that denies visas to supporters of illegal groups.

Sec. 675. `Limitation on Economic Support Fund Assistance for Certain Foreign Governments That Are Parties to the International Criminal Court' is modified by deleting subsection (e) of the fiscal year 2007 Act.

Sec. 677. `Western Hemisphere' is similar to section 576 of the 2007 Act except subsection (b) is stricken and replace by FMF funding levels for Colombia, El Salvador, Honduras, Bolivia, Guatemala, and Belize.

HOUSE OF REPRESENTATIVES REPORTING REQUIREMENTS

CHANGES IN THE APPLICATION OF EXISTING LAW

Under `Economic Support Fund', not less than $415,000,000 is made available only for Egypt of which not less than $135,000,000 shall be for project assistance, of which $50,000,000 is for democracy programs and not less than $50,000,000 is for education; not more than $300,000,000 may be available for Afghanistan subject to certification on poppy eradication and interdiction efforts; $218,500,000 is available only for Colombia alternative development assistance; $263,547,000 should be made available only for assistance for Jordan; not more than $63,500,000 may be made available for West Bank and Gaza; not less than $45,000,000 should be available for Lebanon of which not less than $10,000,000 should be available for American educational institutions for scholarships and other programs; $11,000,000 should be available for Cyprus; $1,000,000 is available for administrative expenses from funds available for Timor-Leste; funds may be spent for programs and activities for the Central Highlands of Vietnam; and funding made available for Middle East Financing Facility, Middle East Enterprise Fund, or any other similar entity shall be subject to regular notification procedures.

Under `International Narcotics Control and Law Enforcement', the Department of State is given the authority to use section 608 of the Foreign Assistance Act of 1961 to provide excess property to a foreign country; provides not less than $15,000,000 for International Law Enforcement Academies; funds demand reduction programs at $12,000,000; not less than $8,000,000 for programs to combat transnational crime and criminal youth gangs; a limitation of $38,000,000 is placed on administrative expenses; and a limitation that no funds shall be available for aerial eradication programs in Afghanistan.

Under `Andean Counterdrug Initiative', assistance for Colombia is made available consistent with the provisions authorizing and limiting such assistance as are contained in Public Law 107-206; section 482(b) of the Foreign Assistance Act is waived, subject to notification; the Secretary of State, in consultation with the Administrator of USAID, shall provide to the Committee 45 days after the date of enactment a report on the proposed uses of all funds under this heading on a country-by-country basis for each proposed program, project or activity; not less than $5,000,000 for programs to protect biodiversity, indigenous reserves and Afro-Colombian lands from aerial spraying; not more than 10 percent of funds for aerial fumigation may be provided before a certification; determination that no effect alternatives exist to reduce drug cultivation and spraying is conduced in accordance with Colombian laws; not less than 10 percent of funds provided for interdiction is allocated for major drug interdiction operations; a limitation of $17,000,000 is placed on administrative expenses of the Department of State; requires a certification in order to provide assistance for the Bolivian military; and not more than $7,800,000 may be available for administrative expenses of the United States Agency for International Development. Provision providing support for unified campaign carried under section 649.

Under `International Military Education and Training', provides up to $3,000,000 available until expended; requires human rights certification of that Guatemalan Air Force, Navy and Army Corp of Engineers; provides only expanded military education and training for Libya and Angola; reporting requirement on Western Hemisphere Institute for Security Cooperation.

Under `Foreign Military Financing Program' not less than $2,400,000,000 is appropriated for Israel, of which not less than $631,200,000 shall be available for the procurement in Israel of defense articles and defense services and that all funds for Israel must be disbursed within 30 days of enactment of this Act; $1,300,000,000 shall be made available for grants only for Egypt; a limitation of $41,900,000 is provided for administrative expenses; $200,000,000 shall be made available for Jordan; and a limitation of $395,000,000 from certain other funds may be obligated for expenses incurred pursuant to section 43(b) of the Arms Export Control Act; $5,000,000 is available until expended; provides funding for Guatemala in accordance with certification requirements on human rights, judicial authorities ability to investigate implications to gross violations of human rights and the International Commission Against Impunity in Guatemala (CICIG) has become law.

Sec. 649, `Colombia' is a new general provision providing capped funding for Colombia at $530,608,000, and setting funding limits for the various accounts that provided funding to make up the overall funding level. Provision also provides funding for alternative development programs, military assistance and training, and rule of law programs. The provision includes language formerly contained under the heading `Andean Counterdrug Initiative' (ACI) which extends the availability of funds provided for assistance for Colombia to support a unified campaign against narcotics trafficking, against activities by organizations designated as terrorist organizations, and to take actions to protect health and human welfare. It continues the language directing the Secretary of State to consult with the Committee if implementing the expanded authorities.

Sec. 656, `Limitations on Assistance to Colombia' is similar to section 556 of the 2007 Act and is modified by changing the amount of assistance withheld from the Colombian armed forces prior to a written certification from 25 percent to 35 percent. Funding for critical flight safety and or any alternative development programs are exempted from the withholding.

Sec. 658, `Support of Peace Process and Demobilization in Colombia' is a new general provision which modifies the section 599E, Assistance for Demobilization and Disarmament of Former Irregular Combatants in Colombia, contained in the fiscal year 2007 Act. Provides funding in ESF for demobilization and OAS activities and retains language requiring consultation and notification before the obligation of funds for demobilization of paramilitaries.

Sec. 673, `Cuba' is the same general provision as included in the House-passed Foreign Operations, Export Financing and Related Programs Bill, fiscal year 2007 bill and prohibits counternarcotics assistance in this Act to the Government of Cuba.

Sec. 674, `Limitation on Economic Support Fund Assistance for Certain Foreign Governments That Are Parties to the International Criminal Court' includes language, carried in prior years but is modified by deleting subsection (e) of the fiscal year 2007 Act.

Sec. 675. `Limitation on Economic Support Fund Assistance for Certain Foreign Governments That Are Parties to the International Criminal Court' is modified by deleting subsection (e) of the fiscal year 2007 Act.

Sec. 677, `Western Hemisphere' is similar to section 576 of the 2007 Act except subsection (b) is stricken and replaced by FMF funding levels for Colombia, El Salvador, Honduras, Bolivia, Guatemala, and Belize.

MINORITY VIEWS OF THE HON. JERRY LEWIS AND HON. FRANK WOLF~~

ITEMS OF CONCERN

COLOMBIA

We remain deeply concerned about the future of the relationship between the U.S. and Colombia as a result of provisions and funding decisions in this bill. President Uribe won his presidential election with an 84 percent approval rating. The citizens of Colombia support him overwhelmingly yet that level of support is not reflected in language included in the bill and accompanying report. The Colombian Government has been a critical ally of the United States in the fight against narcotics production and trafficking. However, instead of recognizing the progress that Colombia has made over the past decade, this bill cuts funding. Moreover, it shakes the very basis of the cooperative relationship that the U.S. has developed with the Colombian government. This is no way to treat such an important ally.

Additionally, there is a $100,000,000 shift in focus of U.S. counter-narcotics and counterterrorism policy for Colombia from eradication and interdiction towards alternative development. The United States is the only partner of Colombia providing external support for eradication and counterterrorism, while international organizations and other donor countries assist with alternative development programs. Therefore, such a shift would have significant effects on the ability of the Colombian Government to continue its commitment to fight coca cultivation, the primary source of funding of terrorism in the Western Hemisphere.~

Human rights violations by members of the Colombian Government and military have been included in recent press reports and through several indictments of high level officials. It is apparent that the very reason these people have been indicted in Colombia is that President Uribe has cleared the way for investigations and provided support for their resolution. We believe that to criticize the Government of Colombia because of past and ongoing investigations and prosecutions of corrupt officials and human rights abusers is counterproductive. Yet, Republicans are steadfast in our belief that human rights abuses cannot be tolerated by any country, including an ally of the United States.

The provision of U.S. assistance has been directly responsible for bringing stability to Colombia. When Plan Colombia started, the country was torn by civil war. The Colombian people couldn't travel freely throughout the country. Since Plan Colombia began, kidnappings have fallen by 75 percent, the Gross Domestic Product of Colombia has increased from 1.5 percent a year to 7 percent annually, and U.S. exports to Colombia have grown from $3.6 billion to $5.4 billion a year.

In summary, we appreciate the Chairwoman's efforts to recognize our interest in minimizing cuts to assistance for Colombia. However we are still concerned that provisions in the bill reshape a long-standing program that has helped to stabilize and develop a country into one that is unproven, and different from what the Government of Colombia or its people desire.

CUBA~

We are disappointed that the bill falls short of the President's request to fund the program recommendations made in July 2006 by the Commission for Assistance to a Free Cuba. The Castro regime is the only non-democratically elected government in the Western Hemisphere. It exerts absolute control over all media. As a result, the Cuban people do not have access to reliable, independent information. Now is the time to demonstrate a commitment to a future of freedom for Cuba and to fund programs that will facilitate a peaceful democratic transition. Specifically, we believe that the bill should do more to support broadcasting to Cuba. Additional investments in transmission capabilities to overcome jamming will result in larger audiences for our television and radio broadcasts. In addition, the bill provides only 20 percent of the requested funding for civil society and democratic development programs, including programs to break the regime's information blockade. We will work to increase this funding as the bill moves forward.