Mr. Acting Chairman Berman, Ranking
Member Ros-Lehtinen, Members of the Committee:
Thank you for this opportunity to
appear before the Committee today in support of the President’s FY 2009
international affairs budget request, and to discuss our nation’s foreign
policy priorities. This is the fourth
time I have come before this committee to discuss and defend the international
affairs budget. As you know, this is the
last budget I will present to you in my capacity as Secretary of State. I want to take this occasion to thank the
Committee, and especially the Chairman and Ranking Member, for their support
and cooperation on many of the issues we addressed here in the past three
years, and to let you know that this Administration is committed to a vigorous
foreign policy during our remaining eleven months. We have many critical issues before us and we
intend to press forward our national interests on all fronts. I look forward to working with the Committee
to do just that.
I would like to take a moment to ask
you to act quickly on the balance of funding requested in the FY 2008 Global
War on Terror Supplemental. These
additional resources are critical to the Department’s continued diplomatic
operations in Iraq. The Supplemental also addresses critical
security and construction requirements in Afghanistan,
support for international organizations functioning in Iraq and Afghanistan,
and peacekeeping missions in Darfur as well as
other urgent humanitarian and foreign assistance efforts. This funding is necessary to our on-going
diplomatic mission and I ask for your support.
FY 2009 State Operations
Request
Let me begin by discussing our
request for Department of State operations.
This request funds the platform on which we build our foreign policy
activities, including diplomacy and foreign assistance, around the world.
The FY 2009 budget for Department of
State Operations totals $11.456 billion.
These funds will significantly strengthen the core programming, policy,
and management capabilities of the Department which are necessary to carry out
vital U.S.
diplomatic and consular relations with more than 180 countries. They will also support strategic U.S. engagement
abroad through public diplomacy and multilateral diplomacy.
Diplomatic Solutions
to National Security Issues
The request provides $3.806 billion
to increase the capacity of American diplomacy to meet challenges to U.S. national
security and welfare in the international arena where power is defined
increasingly in economic and financial terms and where transnational threats
like terrorism, disease, and drug trafficking have become urgent. The requested funding will strengthen the
global operating platform for the U.S. Government and add 1095 new positions. These new positions will allow us to expand
training in much-needed skills, including in critical foreign languages. The positions will also increase the number
of Political Advisors to the military combatant commends, enhance interagency
collaboration, and allow Department employees to take advantage of interagency
development and training opportunities. Increased
interagency cooperation is a valuable means to advance our diplomacy, but we
need sufficient numbers of trained personnel to execute complex, coordinated
efforts abroad. Building the
Department’s capacity to fill this role is my highest priority and I ask for
your strong support.
The request also includes funding, as
in previous years, for Foreign Service Compensation Reform, which would
eliminate the pay disincentive caused by the loss of locality pay upon transfer
to foreign assignments. When the
government instituted locality pay in the 1990s, it did not include Foreign
Service employees working abroad. As a
result, when officers transfer to overseas assignments, they lose the locality
portion of their pay. With the Washington D.C.
rate now equal to approximately 20% of employee compensation, this loss severely
undermines the salaries of officers assigned abroad. Moreover, this sizable and growing
disincentive undermines our ability to attract talent and reward
sacrifice. Diplomacy is a difficult,
sometimes dangerous business, and the sacrifices made by Foreign Service
officers and their families are real. In
implementing Senior Pay Reform, we were able to eliminate this disincentive for
our senior members of the Foreign Service, but the problem remains – and is
more acute – for our mid-level and junior officers. I am asking that you provide the necessary
authorization requested by the Administration to address this problem by
enabling a transition to a performance-based pay system and a global rate of
pay.
Civilian
Stabilization in Post-Conflict States
The request provides $249 million, including
funding for 351 positions, in a new appropriation, the Civilian Stabilization
Initiative, to build a U.S. government civilian capacity that can assist in reconstruction
and stabilization efforts in post-conflict states. The requested funding will support, train,
equip, and deploy an interagency civilian response corps comprised of interagency
Active and Standby components and a Civilian Reserve of outside experts. This effort will provide mission-ready experts
in fields such as policing and the rule of law, transitional governance, and
economic stabilization and development.
The request will also fund the personnel and operating expenses of the
Office of the Coordinator that provides Washington
leadership to whole-of-government strategic planning, analysis, policy
direction, and coordination of USG reconstruction and stabilization activities. The CSI complements our request for
additional personnel and has the strong support of the Department of Defense. This is a high priority and we need to get
this accomplished.
Protecting America’s
Borders
The FY 2009 budget provides $2.124
billion for the Border Security Program.
This program helps secure American borders against illegal entry by
terrorists and others who threaten homeland security. At the same time, it facilitates the entry of
legitimate foreign visitors and students.
Revenue from Machine Readable Visa (MRV) fees, Enhanced Border Security
Program fees, the Western Hemisphere Travel Surcharge, and visa fraud
prevention fees will fund continuous improvements in systems, processes, and
programs. The fees will also fund 448
additional positions required to address rising passport demand associated with
the Western Hemisphere Travel Initiative and rising visa demand, including
increases related to Border Crossing Card renewals.
Providing Secure
Diplomatic Facilities
The request provides $1.163 billion
for Worldwide Security Protection to increase security for diplomatic
personnel, property, and information in the face of international
terrorism. The funding will extend the
program to upgrade security equipment and technical support, information and
systems security, perimeter security, and security training. This funding will also support the worldwide
local guard force protecting diplomatic missions and residences. Funding increases will help meet new security
demands in all regions and implement the Visa and Passport Security Strategic
Plan to safeguard the integrity of U.S. travel documents. Because people continue to be the single most
important factor in deterrence and response to terrorist acts, the funding will
add 200 security professionals.
The request provides $1.790 billion
to continue security-driven construction projects and to address the major
physical security and maintenance needs of U.S. embassies and consulates. This total includes $844 million for the
Capital Security Construction Program to replace diplomatic facilities at the
most vulnerable overseas posts. FY 2009
proposed projects include new embassy compounds in Santo
Domingo, Dakar, Maputo,
and Malabo. During the fifth year of Capital Security
Cost Sharing (CSCS), U.S.
government agencies with personnel abroad under chief of Mission
authority will contribute $455 million to CSCS construction. The request also includes $105 million to
upgrade compound security at high-risk posts and to increase protection for
soft targets such as schools and recreation facilities. In addition, the request includes $841
million for ongoing operations, including major rehabilitations. These programs are essential to protect the
investment in real estate assets which are currently valued at over $14 billion
and to keep more than 15,000 properties in good working order.
Influencing Foreign
Opinion through Public Diplomacy
The request provides
$395 million in appropriations for public diplomacy to influence foreign
opinion and win support for U.S.
foreign policy goals, including through providing 20 new public diplomacy positions.
In addition to advocating U.S. policies, public diplomacy
communicates the principles that underpin them and fosters a sense of common
values and interests. Objectives of the
national public diplomacy strategy include promoting democracy and good
governance, marginalizing extremist leaders and organizations, and preventing extremist messaging from gaining a foothold with
vulnerable populations. Through
innovative programs we are providing positive alternatives for Muslim youths,
and helping build networks among progressive-minded Muslims, in many cases
working in partnership with the private sector, civil society and academia. We also place a high priority on modernizing
our communications architecture to strengthen our leadership in the war of
ideas and sharpen our messaging to counter terrorist propaganda.
Exchange Programs
The request provides
$522 million and 19 positions for educational and cultural exchanges to
increase mutual understanding and to engage the leaders of tomorrow. Aligned with other public diplomacy efforts,
these people-to-people programs are uniquely able to address difficult
issues. The request includes increased
funding for academic and professional programs to reach constituencies vital
for America
– youth and those who influence youth. The
programs include English language, Fulbright, and other academic initiatives,
and Citizens Exchanges, within the President’s Partnership for Latin American
Youth. The funding will also continue to
support the President’s National Security Language Initiative, promoting
teaching and study of critical foreign languages, including the Arabic,
Chinese, Korean, and Russian languages, and the Indic, Turkic, and Persian
language families.
Information Technology
The request provides $414 million for
State’s Central Fund, including revenue from fees, for Central Fund investments
in “knowledge management” and information technology (IT). The ability of the Department to support
transformational diplomacy, information sharing, rightsizing efforts, and
E-Government initiatives depends increasingly on robust, secure IT. Funding increases in FY 2009 will help
support the State Messaging and Archive Retrieval Toolset project, diplomacy
through collaboration, and IT infrastructure that provides American diplomats with
anytime/anywhere computing.
Multilateral Diplomacy
The request provides $1.529 billion
to pay U.S.
assessed contributions to 47 international organizations, including the United
Nations. The request includes payments
to address outstanding U.S.
arrears to international organizations.
The request recognizes U.S.
international obligations and reflects a commitment to maintain the financial
stability and efficiency of those organizations. Membership in international organizations
assists in building coalitions and gaining support for U.S. policies
and interests. Further, multilateral
diplomacy through such organizations serves key U.S. foreign policy goals,
including advancing democratic principles and fundamental human rights,
promoting economic growth through free trade and investment, settling disputes
peacefully, encouraging non-proliferation and arms control, and strengthening
international cooperation in environment, agriculture, technology, science,
education, and health.
International Peacekeeping
The
request provides $1.497 billion to pay the U.S. share of costs for UN
peacekeeping missions. This funding will
help support peacekeeping efforts worldwide, including the activities of
ongoing missions in Lebanon,
Haiti, Liberia, and the Congo. Proposed funding increases will also pay U.S. assessments for new missions in Darfur and Chad. These peacekeeping activities further U.S. goals by
maintaining peace and strengthening regional confidence and stability. They also leverage U.S. political, military, and
financial assets through the participation of other states that provide funds
and peacekeepers for conflicts around the world.
FY 2009 FOREIGN
OPERATIONS REQUEST
Let me turn now to our foreign assistance request. The total State Department and USAID Foreign
Operations request for FY 2009 is $22.7 billion. These funds support the strategic purposes
of our diplomacy: securing peace, supporting democracy, advocating our
principles and ideals, meeting global challenges, and aiding our friends and
allies.
War on Terror
Fighting and winning the War on
Terror remains the greatest challenge to our national security, and it will
continue to be the focus of our military and diplomatic efforts as long as
extremist ideologies and their proponents find safety and support in unstable
and failing states. We have made
enormous strides in diplomatic and foreign assistance efforts in Iraq and Afghanistan, which are notable for
their successes even as we recognize the daunting work that remains. We credit our progress in these countries to
many who have struggled there, to our military and our diplomats, to the
international community, to our counterparts in the military and government in
these countries, and to the citizens in Iraq
and Afghanistan
who recognize and are fighting for the full benefits of freedom.
Iraq
Our engagement with Iraq
remains a centerpiece of the United
States’ effort in the War on Terror.
The Administration’s FY 2009 requests of $404 million in foreign
assistance funding and $65 million in operations funding are critical to meet
these goals. Of this total, $300 million
in Economic Support Funds will help consolidate the security gains realized in
2007 and 2008, and will increase the capacity of local and national Iraqi
Governments ($75 million) to provide services for their population, which in
turn will reduce support for extremist elements. The Administration is also requesting funds
to help the non-oil economy grow, including the development of the agricultural
sector ($50 million), support for business formation ($25 million), and
continued support for key Iraqi economic reforms ($62 million), such as
reducing subsidies. These programs will
generate jobs and stimulate economic growth.
This request also includes funding for the Iraqi-American Enterprise
Fund ($40 million), which will address a critical lack of access to capital and
know-how that is preventing Iraqi entrepreneurs from forming companies. This request also includes $48 million to
continue Democracy and Civil Society programs, which will be vital to support Iraq’s nascent
democracy, particularly in working with new representatives and/or parties
elected in anticipated nationwide elections in 2009. Democracy and Civil Society programs also will
have a direct impact in fostering political reconciliation.
The Administration is also requesting $75 million in funding under
International Narcotics Control and Law Enforcement (INCLE) to bolster Iraq’s
rule of law, including continuing training and security for judges and program
support for major crime task forces, which will help Iraq combat terrorism and
a growing criminal element, and mentoring to Iraq’s corrections service to
ensure criminals are effectively and humanely kept off the streets. The Administration is also requesting $20
million in Nonproliferation, Anti-Terrorism, and Demining (NADR) programs, of
which $16 million will support expansion of a successful humanitarian de-mining
program that has allowed hundreds of communities to bring agricultural and
industrial land back into production, and $4 million in programs to combat
terrorism.
Taken together, these programs are an
integrated approach to build on the significant investment we have already made
in Iraq’s
success. The FY 2009 programs complement
our previous investments in infrastructure, security and capacity building and
will hasten the ability of the Iraqi people to meet their own needs. Failure to fully fund these programs will
endanger the progress we have made over the last five years. In order for us to carry out these programs,
we need the full $65 million request for operational funding for core Embassy
functions.
As a final point on Iraq, I would like to bring some clarity to
discussions about the agreement that we plan to negotiate with Iraq. With the UN Security
Council mandate due to expire at the end of this year, we need an agreement
with Iraq that will ensure
that U.S. forces continue to
have the authorities and protections they need to operate in Iraq. An
agreement with Iraq will not contain a “security commitment;” – that is, there
will be no binding U.S. obligation to act in the common defense in the event of
an armed attack on Iraq, it will not set troop levels, and it will not provide
for permanent bases in Iraq. This arrangement will not “lock in” specific
policies, but will leave policy options open for the next President.
In addition, much as we did in Afghanistan, we expect to negotiate
a strategic framework arrangement building on the Declaration of Principles
that will formalize our intentions to cooperate in political, economic,
cultural, and security fields. We have begun to brief Members of Congress
and will continue to do so as our discussions with Iraq progress.
Afghanistan
For FY 2009, the President has
requested $1.054 billion in foreign assistance to help prevent Afghanistan
from ever again becoming a sanctuary for terrorists. We have achieved many successes in
our fight against the Taliban and Al-Qaida, but we have not won yet. The funds requested are critical to supporting our
comprehensive approach to defeat the insurgency and return Afghanistan to
long-term stability based on Afghan national sovereignty, democratic
principles, and respect for human rights.
The Afghan government enjoys broad support, while the Taliban offers no
political vision. We are collaborating
bilaterally, with donors, and through NATO and other multilateral organizations
to tighten the coherence of security, economic, and governance
capacity-building efforts. Development
and security efforts on both sides of the Afghan-Pakistan border aim to prevent
the deterioration of overall progress.
Recognizing that counterinsurgency requires more
than physical security, we have requested $370 million for counter narcotics efforts, $248 million for democracy and governance, $109
million for health and education, $226 million for economic growth, $74 million to support the work of
our Provincial Reconstruction Teams, and $12 million in non-emergency food aid. Development efforts to improve Afghan
governance at the national and regional and local levels and to achieve
prosperity for the Afghan people are as crucial to winning the war as security
assistance to fight insurgent groups, to prevent Afghanistan from becoming an
illicit narcotics-based economy, and to train the Afghan Security Forces. Simultaneously, the efforts of the U.S. and
the international community to work with the government of Afghanistan to
improve security, build government capacity, protect human rights, reconstruct infrastructure,
and provide humanitarian assistance generate confidence in the Afghan
government and in turn decrease support for insurgents. As part of these efforts, we look forward to
working with Congress on Reconstruction Opportunity Zone (ROZ) legislation that
would help create employment and sustainable economic development in Afghanistan and the border regions of Pakistan.
West Bank/Gaza
The United States
is firmly committed to supporting Israelis and Palestinians as they work to
realize peace. Working with international
donors and Quartet Representative Tony Blair, the United States is strengthening our
support for the Palestinian Authority (PA) Government to help achieve this end.
Our FY 2009 funding request for the
West Bank and Gaza
is $100 million. This includes $25
million for the Palestinian Authority Security Sector Reform Program, part of a
broader U.S. and
international effort to strengthen and transform the Palestinian security
sector and assist the PA in its efforts to extend law and order and meet its
Roadmap obligations to dismantle the terrorist infrastructure, thereby
providing a reliable partner for Israel. Establishing the rule of law and effective
security in the West Bank will support President Mahmoud Abbas and Prime
Minister Salam Fayyad by demonstrating to the Palestinian people that the PA
can reduce lawlessness and improve their lives, and by building the capacity of
the PA to address security threats against Israel. The request includes $24 million for democracy
projects that will assist the PA government to extend the rule of law and
improve governance, including bolstering the justice system through training
judges and building judicial independence, and supporting local
municipalities. A further $18 million
will assist the PA to achieve economic growth by focusing on activities that
increase agricultural productivity, provide support for micro-enterprises,
create private sector opportunity and increase trade. Finally, $33 million will assist the PA
government to provide essential health, education, and humanitarian services to
the Palestinian people.
U.S. government assistance in these areas
will help the Palestinian people directly and support moderates such as
President Abbas and Prime Minister Fayyad, while also providing tools through
security improvements, civil society building, and economic growth to combat
Hamas and its terrorist infrastructure.
Pakistan
A
broad, long-term, and strategic relationship with Pakistan is now crucial to global
security and regional economic interests.
We are encouraging formation of a moderate center to complete the
transition to democracy and underwrite the fight against violent
extremism. Our programs support transparent
elections, democratic institutions, and long term development. We are cooperating closely with the
Pakistanis to defeat extremist groups and networks. U.S. assistance programs support
all these goals.
For FY 2009, the Department of State
is requesting $826 million for Pakistan,
to bolster four areas of cooperation: peace and security, democracy, economic
growth, and health and education.
To win the War on Terror, this
request includes $150 million specifically to support development in the
Federally Administered Tribal Areas.
This is the second tranche of a five-year $750 million Presidential
Commitment initiated in 2007. This will
allow the United States
to help the Government of Pakistan recast its relationship with the country’s
Federally Administered Tribal Areas.
Of the total $826 million, we are requesting
$343 million for peace and security assistance, including $7.7 million for
counterterrorism programs and $32 million for border security, law enforcement
capacity building, and counter-narcotics efforts. This will aid the government of Pakistan in
countering the terrorist threat, enhancing border security, addressing illicit
narcotics activities, and establishing the means to provide for a peaceful and
secure environment.
Recognizing that the War on Terror
can not be won solely by improving security, our request includes $55 million
to strengthen democracy and good governance, $119 million to expand economic
opportunity, and $260 million for health and education.
Lebanon
Progress in Lebanon remains a critical element of our
efforts to foster democracy and security in the Middle
East. We have joined hands
with Lebanon’s
elected government to support their struggle for freedom, independence, and
security. For FY 2009, the Department of
State has requested $142 million in foreign assistance for Lebanon to support two parallel objectives:
countering threats to Lebanon’s
sovereignty and security from armed groups backed by Syria
and Iran,
and helping foster good governance and a vibrant economy.
Three years ago this week, former Lebanese
Prime Minister Rafiq Hariri was assassinated.
One month later, the Lebanese people demanded an end to foreign
domination and political violence, taking to the streets to call for Syrian
withdrawal from Lebanon. The FY 2009 budget request includes support
for the Special Tribunal for Lebanon—a
concrete demonstration of our unwavering commitment to justice, an end to
political violence, and the protection of Lebanese sovereignty.
Since then, Lebanon
has elected a new parliament and deployed its army to the south of the country for
the first time in 40 years. However, Lebanon
remains under siege by a Syrian and Iranian-backed opposition working to
undermine the nation’s stability, sovereignty, and state institutions. Meanwhile, political violence continues,
including a January 15 bombing of an American Embassy vehicle. Our vision of a safe, secure and democratic
Middle East cannot survive without a sovereign and stable Lebanon.
ECONOMIC ASSISTANCE
Economic Support Funds
The FY 2009 request for Economic Support Funds (ESF) is $3.15
billion, an increase of $164 million over the FY 2008 enacted level. ESF remains a reliable assistance mechanism
by which we advance U.S.
interests through programs that help recipient countries address short- and
long-term political, economic, and security needs. ESF also supports major foreign policy
initiatives such as working to resolve the Israeli-Palestinian conflict and
regional economic integration in East Asia. ESF funds global and regional programs that
support specific U.S.
foreign policy goals, including assistance to states critical in the War on
Terror.
The request includes significant increases in some activities
over the Administration’s request for FY 2008, such as programs in Nepal to
address rural poverty and help blunt the appeal of Maoist rebels, Lebanon to
bolster that country’s democratic traditions and reduce the ability of
Hezbollah to divide the populace, and South and Central Asia to improve
communications and transportation linkages between Afghanistan and its regional
neighbors.
The Administration’s strategic priorities for FY 2009 ESF
include funding for our partners in the War on Terror to mitigate the influence
of terrorist and insurgent groups and reduce their potential to recruit in
regions bereft of political and economic participation; countries and regions
at risk of civil unrest, to assist in building democratic institutions, fight
poverty, and provide basic services and economic opportunities; states of
concern to encourage democratic reform and build civil society; and regional
and thematic programs like the Asia-Pacific Partnership, Middle East
Partnership Initiative, and promoting implementation of Free Trade Agreements,
especially improving labor and environmental conditions, and efforts to combat
Trafficking in Persons.
Millennium Challenge
Corporation
The request of $2.225 billion
supports the continuing assistance efforts of the Millennium Challenge
Corporation (MCC), an important contributor to U.S. foreign assistance through the
principles of promoting growth through good governance, investment in health
and education, and economic freedom. By
early FY 2008, the MCC had approved a total of 16 compacts worth over $5.5
billion. An additional 14 threshold
agreements were in place at the end of FY 2007, and there is a robust pipeline
of compacts under development. MCC
expects to sign compacts with Tanzania
($698 million) in February 2008, and with Burkina
Faso ($500-$550 million) and Namibia ($300-325 million) this
summer. MCC is also engaged with Jordan, Moldova,
Malawi
and other countries in the compact development process, and foresees sizable
compacts with those countries in FY 09.
Eight compacts are entering their
second or third year of implementation, and are achieving tangible
results. For example, in Georgia, the
first phase of gas pipeline repairs is complete, providing Georgian citizens
and businesses with needed electricity and heat. In Honduras
and Madagascar,
farmers are employing new techniques to improve productivity and links to
reliable markets, thereby increasing their incomes.
MCC and USAID programs are
complementary and mutually reinforcing.
USAID programs help countries improve policies to qualify for compacts, build
their capacity to manage funds and administer compact and threshold programs,
and support overall U.S.
efforts to keep MCC countries on a transformational development track. MCC programs frequently build on existing
USAID programs and other USG assistance.
They do not overlap with them, and USAID adjusts programs to augment funding
for opportunities created by MCC programs, and to enhance and sustain
assistance in other areas.
Development Assistance
The Development Assistance request of $1.639 billion supports
programs in countries that range from those with very low incomes whose
governments are sufficiently stable and organized, to those with income levels
above MCC eligibility that are relatively well-governed. The goal of all Development Assistance is to
foster an expanded community of well-governed states that respond to the needs
of their people and act responsibly within the international community.
Countries receiving DA face a range of long-term development
challenges. Experience shows that the most effective response is to provide a well-balanced
package that includes sustained support for transformational democratic and
economic reforms and that is closely coordinated with MCC programs and the
President’s Emergency Plan for AIDS Relief (PEPFAR). These assistance programs also must complement
and reinforce other development-related foreign policy initiatives, including our
diplomatic efforts to advance freedom and democracy, expand international trade
opportunities, and address climate change and other critical environmental
issues. Our strategic priorities for DA funding in FY 2009
include: long-term democratic governance
and economic growth programs in Africa; trade capacity building programs in
Africa and the Western Hemisphere; capacity building in support of the Global
Climate Change initiative; strengthened democratic governance in the Western
Hemisphere; accelerated literacy and numeracy programs under the President’s
International Education Initiative, and more broadly in Africa, the Western
Hemisphere and the Middle East, and alternative development in the Andean
countries.
We also recognize that any effort to
improve development initiatives will require a significantly increased overseas
presence of USAID, together with expanded technical and stewardship
capabilities. Therefore, we are
requesting $767.2 million in USAID Operating Expenses which will allow USAID to
increase its overseas workforce. Under
the Development Leadership Initiative, USAID will hire 300 Foreign Service
Officers above attrition in FY 2009 to build the capacity to implement the
National Security Strategy for foreign assistance.
Trade Agreements
Let me say a word about the trade agreements we have
concluded with Colombia, Panama, and Korea. Expanding trade opportunities advances
American economic and national security interests. The Department is deeply involved in
international trade issues at all levels. I recently traveled to Colombia with
nine Members of Congress, who saw first-hand the impressive results of economic
and political reform there. Our missions
abroad actively support the negotiation and enforcement of our trade
agreements.
Through multilateral, regional, and bilateral trade
agreements, we lower tariff and non-tariff barriers to U.S.
businesses, farmers, ranchers, and entrepreneurs. The American worker can compete successfully
with anyone so long as the rules are fair.
We help set those rules by promoting open markets, as we have done since
the end of World War II. Our efforts at
the World Trade Organization (WTO) strengthen these rules and expand
opportunities globally. We are at a
critical juncture in the Doha Round of WTO negotiations, which the President
has described as a “once in a generation opportunity” to create economic
opportunity, promote development, and alleviate poverty. As the President noted in his State of the
Union address, the United
States is committed to the conclusion of a
strong Doha Round this year, and will provide the leadership necessary to
achieve this objective.
With respect to bilateral trade agreements, our free trade
agreement with Colombia
is a prime example of how such agreements can strengthen both our economy and
national security. The United States currently provides duty-free
treatment to virtually all Colombian products entering the U.S. under the
Andean Trade Preference Act. With the
U.S.-Colombia Free Trade Agreement, U.S. GDP will grow by an estimated $2.5
billion by expanding opportunities for U.S.
exporters as the significant tariffs that are assessed on U.S. exports to Colombia are reduced and eliminated. We urge Congress to consider and pass the
Colombia FTA to allow our exporters to receive the same treatment as is
available to Colombian exports to the U.S.
The importance of the agreement, however, extends beyond
trade. The current and previous
Administrations, as well as the Congress, have made a significant commitment to
Colombia by providing over
$5 billion in assistance through Plan Colombia. Security in Colombia is vastly improved, the
economy has rebounded, and Colombians have real hope for the future. The proposed FTA advances our partnership and
cements these gains. The Colombia FTA
reflects the open, democratic, economic, and political system which is our
vision for Latin America. Colombia
is a friend of the United
States.
Its government has taken great risks to achieve the successes it has
achieved. I urge the Congress to pass
this agreement for internal security reasons as well.
Two additional key allies of the U.S.
are also awaiting Congressional action on free trade agreements: Panama and Korea. The U.S.-Panama Free Trade Agreement will
build on our already vibrant trade relations and support the consolidation of
freedom and democracy in this important country. The U.S.-Korea Free Trade Agreement is the
most commercially significant FTA in over 15 years. Korea
has been a steadfast partner and ally in promoting peace and security in Northeast Asia and globally. I urge your action on these agreements as
well.
SECURITY ASSISTANCE
Foreign Military
Financing
The request of $4.812 billion for Foreign Military Financing
(FMF) will advance U.S.
interests by ensuring that coalition partners, allies, and friendly foreign
governments have the equipment and training necessary for common security goals
and burden-sharing in joint missions. This
request includes $2.55 billion for Israel, the first year of a 10 year
$30 billion commitment. FMF promotes our
national security by strengthening the defense of friendly governments and bolstering
their abilities to contain transnational threats, terrorism, and trafficking in
persons, weapons, and narcotics. This
request provides funding for Egypt
to foster a modern, well-trained Egyptian military, and support for force
modernization, border surveillance and counter-terrorism efforts in Jordan. FMF is helping to build a Lebanese army
capable of implementing UN Security Council resolutions 1559 and 1701, secure Lebanon’s border against weapons smuggling, and
begin the process of disarming militias in Lebanon. The request also finances programs with the
Gulf States of Bahrain and Oman
as part of the Gulf Security Dialogue.
FMF will also assist ongoing efforts to incorporate into NATO the most
recent members of the Alliance and to support
prospective NATO members and coalition partners, as well as partners in Iraq and Afghanistan.
International Military
Education and Training
The International Military Education and Training (IMET)
program request for FY 2009 is $90.5 million.
Through professional and technical course curricula and specialized
instruction, this key component of U.S.
security assistance provides valuable education and training on U.S. military
practices within a context of respect for democratic values and internationally
recognized standards of human rights.
IMET programs in Europe advance regional security and force integration
among NATO and European armed forces, most notably in Turkey, Poland, Ukraine,
and the Czech Republic. In the Near
East, IMET provides technical training necessary to maintain U.S.-origin equipment
in Jordan, Morocco, Tunisia,
Egypt, Iraq, Lebanon
and Oman. In Africa, IMET provides training programs
for Ethiopia, Kenya, Nigeria,
Senegal, and South Africa,
countries central to long-term regional peace and stability. In East Asia, IMET programs with the Philippines and Indonesia, for example, focus on
professionalizing defense forces and developing skills in fighting the War on Terror. In South Asia, IMET programs improve military
interoperability with the United
States and educate South Asian armies in
respect for human rights and civilian-military cooperation. In the Western Hemisphere, IMET focuses on
building capacity to respond to regional security challenges, with major
programs in El Salvador, Colombia, and Mexico.
IMET is a critical tool to strengthen important military
relationships in the global fight against terrorism and to do so in the context
of support for human rights. IMET helps
ensure that future leaders of foreign militaries are well trained, exposed to
the U.S. system of civilian
control of the military, and have lasting ties to the U.S. defense
community.
Nonproliferation,
Anti-terrorism, Demining, and Related Programs
The request for the Nonproliferation, Anti-terrorism,
Demining and Related Programs Account is $499 million. With this year’s request, three separate
sub-accounts, Humanitarian Demining, International Trust Fund, and Small
Arms/Light Weapons, are combined into one line item in the budget to address
more appropriately our global Conventional Weapons Destruction efforts. We are also establishing a proposed new
sub-account for WMD terrorism to undertake projects that improve international
capabilities to respond to potential WMD terrorist attacks.
The FY 2009 request includes increases in several important
areas. We propose continued funding for
humanitarian demining and increased funding for programs to address the threat
to civil and military aviation posed by terrorists and insurgents armed with
MANPADS. We have also proposed increased
funding for the Nonproliferation and Disarmament Fund to address emergent
nonproliferation and disarmament requirements including additional support for disablement
and dismantlement activities in North
Korea, as they are achieved in the ongoing
Six Party talks. Increases in the Global
Threat Reduction program will strengthen biosecurity programs and anti-nuclear
smuggling programs.
Under the Anti-Terrorism Assistance (ATA) program, we are
expanding the TransSahara Counterterrorism Partnership (TSCTP) in the North
Africa region, and strengthening linkages with the existing TSCTP in sub-Saharan
Africa to prevent terrorist movement between
Mahgreb and Sub-Saharan states and to promote greater regional
cooperation. Increased funding for ATA
will also support counterterrorism programs in East Africa.
Peacekeeping Operations
The FY2009 request for Peacekeeping Operations (PKO) is
$247.2 million, which is necessary to advance international support for
voluntary, multi-national stabilization efforts, including support for non-UN
missions and for U.S.
conflict-resolution programs. PKO
funding enhances the ability of states to participate in peacekeeping and
stability operations and to address counterterrorism threats. In the aftermath of conflict, PKO funds help
transform foreign military establishments into professional military forces
guided by the rule of law.
An important element of FY 2009 PKO funding is the
President’s Global Peace Operations Initiative (GPOI), now in its fifth
year. FY 2009 funding will train over
15,000 peacekeeping troops to reach the initiative’s goal of 75,000
peacekeeping troops trained worldwide.
GPOI includes the African Contingency Operations Training and Assistance
(ACOTA) program, as well as train-and-equip programs outside of Africa. GPOI
assists in the deployment of peace operations troops, provides logistics and
transportation support, and assists regional organizations in planning and
managing peacekeeping operations. PKO
funding also helps support TSCTP; Security Sector Reform programs in Liberia, Sudan
and the Democratic Republic of Congo; peacekeeping activities in Somalia;
and the Multinational Force and Observers peacekeeping mission in the Sinai.
GLOBAL CHALLENGES
Democracy & Human
Rights
We will continue to promote democratic
development and uphold international standards of human and worker rights
globally. We are requesting $1.745
billion for programs to advance good governance, democracy and human rights in
support of the President’s Freedom Agenda, including political competition and
consensus building, rule of law, and civil society activities in countries
around the world. This budget will
support centrally managed and multilateral efforts that provide targeted
funding for unforeseen needs and opportunities, advance democracy in difficult
countries where bilateral programs are not feasible and provide technical
support to our overseas missions on democracy issues and programs.
Our request includes $60 million in ESF for the Human Rights and
Democracy Fund to support innovative activities that open political space in
struggling and nascent democracies and in authoritarian regimes as the leading
element of the U.S.
government’s efforts to effect positive and lasting change. HRDF will allow us
to support pivotal democracy and human rights programming in critical target
countries such as China, Belarus, Russia,
Lebanon, North Korea, Thailand,
Venezuela, Somalia, Burma,
and Pakistan.
With HRDF, we will continue to support the Global Human Rights Defenders Fund,
a program that enables us to quickly disburse small grants to human rights
defenders facing extraordinary needs due to government repression. In addition,
we will fund innovative approaches to advance labor rights abroad by
strengthening democratic trade unions and will promote corporate social
responsibility globally.
International Narcotics
and Law Enforcement
The $1.202 billion request for International Narcotics and Law
Enforcement (INCLE) and $406 million for the Andean Counter drug Program (ACP) in
FY 2009 supports bilateral and global programs to combat transnational crime,
illicit narcotics threats, and terrorist networks built upon and funded by the
illegal drug trade. These programs aim
to strengthen and professionalize law enforcement institutions that are weak or
subject to corruption.
INCLE funds are focused mainly on countries in which serious security
threats exist, both to host governments and to our national interests as
well. This includes countries like Afghanistan, Iraq,
Pakistan, the Democratic
Republic of Congo, Haiti, Indonesia, Liberia,
and Sudan.
Of particular note this year is the importance and timeliness of the
Merida Initiative, our new program for security and law enforcement cooperation
with Mexico and the nations
of Central America. The President has requested $550 million in
FY 2008 and in FY 2009, a total of $1.1 billion. The Administration believes that we must act
now to assist our southern neighbors in their fight against the criminal organizations
that threaten their security and prosperity, as well as our own. These nations have demonstrated the political
will to tackle critical problems and have asked us to cooperate with them as
partners. I strongly urge Congress to
fund this important national security initiative both through the FY 2008
supplemental and the FY 2009 appropriation.
Migration and Refugees
Assistance
Our commitment to providing humanitarian assistance and protection
for refugees, conflict victims, and vulnerable migrants remains strong. We are requesting $764 million in FY 2009 to
fund contributions to key international humanitarian and non-governmental
organizations and for bilateral programs to respond to humanitarian needs
abroad and identify durable solutions, including resettlement of refugees in
the U.S. These funds provide for basic needs to
sustain life, protect refugees and conflict victims, assist refugees with
voluntary repatriation, local integration, or permanent resettlement in a third
country. They are a humane and effective
response to pressing needs that reflects the compassion of the American people. Humanitarian needs related to Iraq and Afghanistan will be subject to a
separate FY 2009 Supplemental request.
The request of $45 million for the President’s Emergency Refugee and
Migration Assistance Fund is critical to meet urgent and unforeseen humanitarian
requirements.
Global HIV/AIDS
Initiative
The Global HIV/AIDS Initiative account (GHAI) is the largest
source of funding for the President’s Emergency Plan for AIDS Relief
(PEPFAR). The request of $4.779 billion
is a substantial increase over the FY 2008 enacted level for the PEPFAR
bilateral program, and capitalizes on the demonstrated capacity-building and
programmatic successes in prevention, care, and treatment during the first five
years of the program. Funding will
support country-based activities, international partners, technical support,
and oversight and management. The FY
2009 request is the first of a new, five-year, $30 billion Presidential commitment
that builds upon and expands our initial five-year, $15 billion commitment.
The request also proposes the development of a “Partnership
Compact” model, with the goal of strengthening host government commitment. In selected countries, compacts will outline
reciprocal responsibilities, linking our resources to increased host country
resources for HIV/AIDS and the establishment of policies that foster an
effective HIV/AIDS response.
Environment
As President Bush said in his State
of the Union address, the United
States is committed to confronting the
challenge of climate change. We want an
international agreement that will slow, stop, and eventually reverse the growth
of greenhouse gasses. Achieving that
goal will require commitments by all major economies, a point we have made in
the two Major Economies Meetings on Energy Security and Climate Change under
the initiative launched by the President in support of UN negotiations.
In Indonesia
this past December, the U.S.
joined with the other parties to the UN Framework on Climate Change (UNFCCC) to
adopt the “Bali Action Plan.” This
document will guide negotiations of a new post 2012 climate change arrangement by 2009.
Our FY 2009 budget request includes $64 million to support our
efforts to address adaptation and reduce deforestation, major elements of the
“Bali Roadmap.”
Through the Asia-Pacific
Partnership on Clean Development and Climate (APP), the U.S. works with China,
India, Australia, South
Korea, Canada,
and Japan
to accelerate the adoption of clean energy technologies. Over 100 APP projects and activities are
reducing emissions in major sectors such as power generation, cement, steel,
aluminum and buildings. Our FY 2009
foreign assistance budget request for APP totals $26 million.
As part of our long-term commitment to protecting the Earth’s ozone
layer we are proposing $19 million for the Montreal Protocol Multilateral
Fund. Last year, the international
community agreed to a landmark U.S.
proposal to accelerate the phase-out of ozone depleting substances. Over the next two decades, this acceleration
will provide climate system benefits that could exceed those contemplated under
the Kyoto Protocol.
Finally,
a request of $40 million supports our commitment to labor and trade-related
environmental initiatives with our Dominican Republic-Central American Free
Trade Agreement partners. These
activities will strengthen institutions for more effective implementation and
enforcement of environmental laws and promote biodiversity, market-based
conservation and private-sector environmental performance.
Conclusion
Mr. Chairman, the FY 2009
International Affairs request proposes an increase of 16% over the FY 2008 base
appropriation, and more than 9% over all FY 2008 appropriations enacted to
date. I understand that this is a
significant increase. But the President
and I, as well as the officials in all departments and agencies which
administer the foreign affairs account, strongly believe this request is fully
justified and critical to the national security interests of the United States. We understand that these funds are the result
of the efforts of hard working American taxpayers. You have our commitment that we will manage
these funds efficiently as stewards of the resources entrusted to us by the American
people.
Thank you very much. I would be pleased to respond to questions.
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