Fiscal Year 2001 Security Assistance Legislation

Introduction

Each year the DISAM Journal publishes a summary and analysis of the legislation that impacts our security assistance programs. In this issue, we present the seventeenth in a series of annual studies of the major pieces of legislation with references to security assistance. This report is intended to alert all security assistance managers to the changes in legislation which will guide program implementation for the coming year. As we have done previously, the report is basically in outline form, with key topics highlighted to facilitate locating specific statutory references. As this issue goes to press, the final allocations of the security assistance appropriations have not been made. Also, the Miscellaneous Appropriations for Fiscal Year (FY) 2001, Section 1(a)(4), P.L. 106-552 of 21 December 2000, mandated a 0.22 percent government-wide rescission of discretionary budget authority, and the full impact of this on security assistance levels has not yet been decided. Consequently, the tables showing the leve ls of country programs that normally accompany this article will be included in the spring issue of the DISAM Journal.

Congressional budget action in this election year was indecisive, and much work remained to be done at the beginning of the fiscal year. A total of 21 continuing resolutions through 21 December was necessary to keep the government operating until appropriate legislation could be passed. Interestingly, the Foreign Operation, Export Financing and Related Program Appropriations Act, 2001, P.L. 106-429, 6 November 2000, was passed during continuing resolution number 15.

Noteworthy this year was the passage of the Security Assistance Act of 2000, P.L. 106-280, 6 October 2000. This was the first security assistance authorization act since 1985. In the intervening years, authorizing language has been included in the annual foreign operations appropriations act. This act includes requirements for having in place binding bilateral agreements which must be certified to Congress before granting exemptions to export licensing procedures under the purview of the Defense Trade Security Initiative. The Foreign Assistance Act was amended to create and fund a new program designed to enhance the nonproliferation and export control capabilities of friendly countries. Finally, this act established a requirement for the Secretary of State to prepare an annual National Security Assistance Strategy for the United States.

The Fiscal Year 2000 Supplemental Appropriations, P.L. 106-246, 13 July 2000, provided over $1 billion for international narcotics control. The Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001, P.L. 106-398, 30 October 2000, created the Western

Below is a more detailed account of the provisions of the legislation of interest to the security cooperation community.

Hemisphere Institute for Security Cooperation and disestablished the U.S. Army School of the Americas.

Reference sources: The following abbreviated titles identify the principal sources of information used in this report.

* AECA: Arms Export Control Act, as amended.

* FAA: Foreign Assistance Act of 1961, as amended.

* P.L. 106-429: Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2001.

* P.L. 106-280: Security Assistance Act of 2000.

* P.L. 106-554: The Consolidated Appropriations Act for FY2001.

* P.L. 106-246: Fiscal Year 2000 Supplemental Appropriations.

* P.L. 106-398: Floyd S. Spence National Defense Authorization Act for Fiscal Year 2001.

* P.L. 106-259: Department of Defense Appropriations Act, 2001.

* P.L. 106-553: Department of State and Related Agency Appropriation Act, 2001.

* P.L.106-212: American Institute in Taiwan Facilities Enhancement Act.

* P.L.106-386: Victims of Trafficking and Violence Protection Act of 2000.

* P.L.106-178: Iran Nonproliferation Act of 2000.

* P.L. 106-246: Military Construction Appropriations Act, 2001.

Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2001, P.L. 106-429, 6 November 2000

* Enacted in slip form within HR 4811 as HR 5526. The conference report is contained in House Report 106-997, printed in The Congressional Record on 24 October 2000.

Foreign Military Financing Program (FMFP), Title III, Military Assistance

* Appropriated $3,545,000,000 with an additional $31,000,000 appropriated by Title VI, Emergency Supplemental Appropriation, Military Assistance, for a total of $3,576,000,000 as FMFP grant assistance for FY2001.

* The Administration funding request for FY2001 FMFP was $3,538,200,000. The Administration subsequently requested the emergency supplemental FMFP for the Balkans provided by Title VI.

* The Conference Report indicates that the House and Senate proposals were $3,268,000,000 and $3,519,000,000, respectively.

* FMFP earmarks include:

* Not less than $1,980,000,000 for Israel to be disbursed within thirty days after enactment of this Act or by 31 October 2000, whichever is later.

* To the extent that the Government of Israel requests the fund to be used for such purposes, not less than $520,000,000 of this funding shall be available for the procurement in Israel of defense articles and service, including research and development.

* Not less than $1,300,000,000 for Egypt.

* Any funding estimated to be outlayed for Egypt during the fiscal year shall be transferred to an interest bearing account for Egypt in the Federal Reserve Bank of New York within thirty days of enactment of this Act or by 31 October 2000, whichever is later. The Committees on Appropriations shall be informed at least ten days prior to the obligation of any interest accrued by this account.

* Section 514, Security Assistance Act of 2000, P.L. 106-280, places further limitations on this interest bearing account (IBA).

* Not less than $75,000,000 for Jordan.

* Not less than $3,000,000 for Malta.

* Not less than $8,500,000 for Tunisia.

* However, the President is authorized and shall direct the drawdown of DoD defense articles and services and military education and training of an aggregate value of not less than $5,000,000 to count toward meeting the directed earmark for Tunisia.

* Not less than $8,000,000 for Georgia.

* However, the President is authorized and shall direct the drawdown of DoD defense articles and services and military education and training of an aggregate value of not less than $4,000,000 to count toward meeting the directed earmark for Georgia.

* Not more than $33,000,000 for expenses, including the purchase of passenger vehicles for replacement only for use outside the U.S., and for general costs of administering military assistance and sales.

* $31,000,000 (by Title VI) for countries of the Balkans and southeast Europe, to remain available until 30 September 2002.

* With the offsetting drawdown authorities considered, $3,429,500,000 of FMFP funding is earmarked for FY2001. This leaves $146,500,000, or four percent of the total appropriated, remaining for other FMFP programs.

* As in prior years, no FMFP funding shall be available for assistance for Sudan, Liberia, or Guatemala.

* Not more than $340,000,000 of the non-appropriated FMS Administrative Budget may be obligated during FY2001 to support administrative expenses of security assistance organizations (SAO), agencies, military departments, etc. related to the implementation of foreign military sales. This account is funded by surcharges which are added to all FMS cases in order to recover U.S. government expenses for sales negotiation, case implementation, program control, computer programming, accounting and budgeting, and other FMS-related administration activities at command headquarters and higher levels.

International Military Education and Training (IMET) Program, Title III, Military Assistance

* Appropriated $55,000,000 with an additional $2,875,000 appropriated by Title VI, Emergency Supplemental Appropriation, Military Assistance, for a total of $57,875,000 as IMET grant assistance for FY2001.

* The administration funding request for FY2001 IMET was $55,000,000. The Administration subsequently requested the emergency supplemental IMET for the Balkans provided by Title VI.

* The Conference Report indicates that the House and Senate proposals were $47,250,000 and $55,000,000, respectively.

* $2,875,000 (by Title VI), to remain available until 30 September 2002, is earmarked for the countries of the Balkans and southeast Europe.

* Up to $1,000,000 of the Title III appropriated IMET funding may remain available until expended.

* Any IMET funding for Indonesia or Guatemala is to be used only for Expanded IMET and any funds made available to these two countries may only be provided through regular notification procedures of the Committees on Appropriations.

* IMET funding under the Title III heading used for the military education and training of civilian personnel may include personnel who are not members of a government whose participation would contribute to improved civil-military relations, civilian control of the military, or respect for human rights.

Economic Support Fund (ESF), Title II, Other Bilateral Economic Assistance

* Appropriated $2,295,000,000 as ESF grant assistance for FY2001 to remain available until 30 September 2002.

* Under the separate heading, International Fund for Ireland, an additional $25,000,000 was appropriated to carry out the provisions of Chapter 4, Part II, FAA, the same authority for ESF, to be available for the U.S. contribution to the International Fund for Ireland, which shall be available in accordance with the provisions of the Anglo-Irish Agreement Support Act of 1986, P.L. 99-415, 19 September 1986, to remain available until 30 September 2002.

* The Administration funding request for FY2001 ESF was $2,313,000,000.

* The Conference Report indicates that the House and Senate proposals were $2,208,900,000 and $2,220,000,000, respectively.

* ESF earmarks include:

* Not less than $840,000,000 for Israel, which shall be available as a cash transfer to be disbursed within thirty days of enactment of this Act or by 31 October 2000, whichever is later.

* In exercising the authority for the cash transfer, the President shall ensure that the level of assistance does not cause an adverse effect on the total level of nonmilitary exports from the U.S. to Israel, and that Israel enters into a side letter agreement in an amount proportional to the FY1999 agreement.

* Not less than $695,000,000 for Egypt, which sum cash transfer shall be provided with the understanding that Egypt will undertake significant economic reforms which are additional to those which were undertaken in previous fiscal years.

* Of which not less than $200,000,000 shall be provided as Commodity Import Program assistance.

* Not less than $150,000,000 "should be made available" for assistance for Jordan.

* Not less than $25,000,000 for East Timor of which up to $1,000,000 may be transferred to and merged with the appropriation for Operating Expenses of the Agency for International Development.

* Of the funds appropriated under this heading, in addition to funds otherwise made available to Indonesia, not less than $5,000,000 "should be made available" for economic rehabilitation and related activities in Aceh region of Indonesia.

* These funds may be transferred to and merged with the appropriation for Transition Initiatives.

* Not less than $12,000,000 "should be made available" for Mongolia.

* Not less than $10,000,000 "may be used" to provide assistance to the National Democratic Alliance of Sudan to strengthen its ability to protect civilians from attacks, slave raids, and aerial bombardment by the Sudanese Government forces and its militia allies, and the provision of such funds shall be subject to the regular notification procedures to the Committees on Appropriations.

* "Assistance" in this proviso includes non-lethal, non-food aid such as blankets, medicine, fuel, mobile clinics, water drilling equipment, communications equipment to notify civilians of aerial bombardment, non-military vehicles, tents, and shoes.

* Not less than $25,000,000 for programs benefiting the Iraqi people (see Section 575).

* Disregarding the separate ESF appropriation for the International Fund for Ireland, $1,762,000,000 of ESF funding is earmarked for FY200l. This leaves $533,000,000, or 23 percent of the total appropriated, remaining for other ESF programs.

* None of the funds under this heading shall be obligated for regional or global programs, except as provided through the regular notification procedures of the Committees on Appropriations.

Peacekeeping Operations (PKO), Title III, Military Assistance

* Appropriated $127,000,000 as PKO grant assistance for FY2001.

* The Administration funding request for FY2001 PKO was $134,000,000.

* The Conference Report indicates that the House and Senate proposals were $117,000,000 and $85,000,000, respectively.

* None of this funding shall be obligated or expended except as provided through the regular notification procedures of the Committees on Appropriations.

Other Related Assistance Programs for FY2001, Title II, Bilateral Economic Assistance

Development Assistance

* $1,300,000,000 is appropriated to remain available until 30 September 2002.

* Up to $12,000,000 may be made available for and apportioned directly to the Inter-America Foundation.

* Up to $16,000,000 may be available for the African Development Foundation and shall be apportioned directly to that agency.

* Numerous provisos concerning the expenditure of these funds with respect to family planning, abortions, and involuntary sterilization.

Assistance for Cyprus

* Of the funds appropriated under the headings, Development Assistance and Economic Support Fund, not less than $15,000,000 shall be available for Cyprus to be used only for scholarships, administrative support of the scholarship program, bicommunal projects, and measures aimed at reunification of the island and designed to reduce tensions and promote peace and cooperation between the two communities on Cyprus.

Assistance for Lebanon

* Of the funds appropriated under the headings, Development Assistance and Economic Support Fund, not less than $35,000,000 shall be made available for Lebanon to be used, among other programs, for scholarships and direct support of the American educational institutions in Lebanon.

Assistance for Burma

* Of the funds appropriated under the headings, Development Assistance and Economic Support Fund, not less than $6,500,000 shall be made available to support democracy activities in Burma, democracy and humanitarian activities along the Burma-Thailand border, and for Burmese student groups and other organizations located outside Burma.

* The provision of these funds shall be made available subject to the regular notification procedures of the Committees on Appropriations.

Assistance for the Conservation Fund

* Of the funds made available under the headings, Development Assistance and Economic Support Fund, not less than $4,000,000 should be made available to support habitats and related activities for endangered wildlife.

International Disaster Assistance

* $165,000,000 is appropriated to remain available until expended for necessary expenses for international disaster relief, rehabilitation, and reconstruction assistance.

* Title VI, Emergency Supplemental Appropriations, Bilateral Assistance, International Disaster Assistance, an additional $135,000,000 is appropriated for rehabilitation and reconstruction assistance for Mozambique, Madagascar, and south Africa to remain available until expended.

Assistance for Eastern Europe and the Baltic States

* $600,000,000 is appropriated to remain available until 30 September 2002 to carry out the provisions of the Support for East European Democracy (SEED) Act of 1989, P.L. 101-179, 28 November 1989.

* Not less than $5,000,000 shall be made available for assistance for the Baltic States.

* Of the funds made available for Kosovo under this heading and under the headings, Economic Support Fund and International Narcotics Control and Law Enforcement, shall not exceed 15 percent of the total resources pledged by all donors for FY200 1 for assistance to Kosovo as of 31 March 2001.

* Not less than $1,300,000 of the funds made available for Kosovo under this heading should be made available to support the National Albanian American Council's training program for Kosovar women.

* None of the funds made available under this Act for assistance for Kosovo shall be made available for large scale physical infrastructure reconstruction.

* Funds made available under this heading and the headings Economic Support Fund and International Narcotics Control and Law Enforcement not to exceed $80,000,000 shall be made available for Bosnia and Herzegovina.

* Title VI, Emergency Supplemental Appropriations, Other Bilateral Economic Assistance, appropriates an additional $75,825,000 for assistance for Montenegro, Croatia, and Serbia to remain available until 30 September 2002.

Assistance for the Independent States of the former Soviet Union

* $810,000,000 is appropriated to remain available until 30 September 2002 to carry out the provisions of the Freedom for Russia and Emerging Eurasian Democracies and Open Markets (FREEDOM) Support Act of 1992, P.L. 102-5 11, 24 October 1992.

* Of the funds made available for the Southern Caucasus region, 15 percent may be used for confidence-building measures and other activities in furtherance of the peaceful resolution of the regional conflicts especially those in the vicinity of Abkhazia and Nagorno-Karabagh.

* Not less than $20,000,000 shall be made available solely for the Russian Far East.

Not less than $1,500,000 should be made available only to meet the health and other assistance needs of victims of trafficking in persons.

* Not less than $170,000,000 should be made available for assistance for Ukraine.

* Of which not less than $25,000,000 should be made available for nuclear reactor safety initiatives, and

* Of which not less than $5,000,000 should be made available for the Ukrainian Land and Resource Management Center.

* Not less than $92,000,000 shall be made available for assistance for Georgia.

* Of which not less than $25,000,000 should be made available to support Border Security Guard and export control initiatives.

* Not less than $90,000,000 shall be made available for assistance for Armenia.

Assistance for International Narcotics Control and Law Enforcement

* $325,000,000 appropriated to remain available until expended to carry out Section 481, FAA.

* Any funds made available under this heading for anti-crime programs and activities shall be available subject to the regular notification procedures of the Committees on Appropriations.

Migration and Refugee Assistance

* $700,000,000 is appropriated to remain available until expended to enable the Secretary of State to provide, as authorized by law, a contribution to the International Committee of the Red Cross, assistance to refugees, including contributions to the International Organization for Migration and the U.N. High Commissioner for Refugees, and other activities to meet refugee and migration needs.

* Not more than $14,500,000 shall be available for administrative expenses.

* Not less than $60,000,000 shall be available for refugees from the former Soviet Union and Eastern Europe and other refugees resettling in Israel.

U.S. Emergency Refugee and Migration Assistance Fund

* $15,000,000 is appropriated to remain available until expended to carry out provisions of Section 2(c), Migration and Refugee Assistance Act of 1962 [22 U.S.C. 260(c)].

Nonproliferation, Anti-Terrorism, Demining and Related (NADR) Programs

* $311,600,000 is appropriated to carry out anti-terrorism assistance, demining activities, the clearance of unexploded ordnance, the destruction of small arms, and related activities, including activities implemented through non-governmental and international organizations, voluntary contributions to the International Atomic Energy Agency (IAEA) and to the Korean Peninsula Energy Development Organization (KEDO), and for contribution to the Comprehensive Nuclear Test Ban Treaty Preparatory Commission.

* The Conference Report indicates that the House and Senate proposals were $241,600,000 and $215,000,000 respectively.

* The Conference Managers intend that the appropriated total be allocated as follows:

* Nonproliferation and Disarmament (NPD) Fund $15,000,000.

* Export Control Assistance $19,100,000.

* International Atomic Energy Agency (IAEA) $47,000,000.

* Comprehensive Nuclear Test Ban Treaty (CTBT) Preparatory Commission $21,500,000.

* Korean Peninsula Economic Development Organization (KEDO) $55,000,000.

* Anti-Terrorism Assistance $38,000,000.

* Terrorist Interdiction Program $4,000,000.

* Demining $40,000,000.

* Small Arms Destruction $2,000,000.

* Science Centers $35,000,000.

* Lockerbie Trail Cost $15,000,000. …

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