*EPF405 07/06/00
Clinton Threatens to Veto Foreign Operations Bills
(Says funding levels insufficient for global role) (1420)
By Phillip Kurata
Washington File Staff Writer

Washington -- President Clinton's advisers are recommending that the president veto the foreign operations spending bill if Congress does not improve the current versions advanced in the Senate and House of Representatives.

The Office of Management and Budget (OMB) has issued statements that both the House and Senate proposed allocations are insufficient to meet U.S. diplomatic objectives.

The House Appropriations Committee has designated $13,344 million for foreign operations in fiscal year 2001 (FY01), which starts October 1, 2000. The Senate has passed a slightly higher figure, $13,428 million.

President Clinton has requested a foreign operations budget of $15,141 million. In the current fiscal year, Congress allocated $13,776 million, excluding a one-time $1,825 million disbursement to fund the Wye River peace accords between Israel and the Palestinians.

"The funding provided is inadequate, and many provisions of the [House Appropriations Foreign Operations] subcommittee bill, such as the international family planning provision, are objectionable," OMB Director Jacob Lew wrote in a letter to House Appropriations Committee Chairman Bill Young. "The president's senior advisers would recommend that he veto the bill if it were presented to him in its current form."

With regard to the Senate bill, an OMB statement said the "bill is more than $1,700 million, or more than 11 percent, below the program level requested by the president. A bill funded at this level would be grossly inadequate to maintain America's leadership around the world."

The House and Senate versions of the foreign operations legislation must be merged into a single bill before it is sent to the president, who will either veto it or sign it into law.

Congress is in recess until July 10. House and Senate leaders say they will focus on spending bills when the Congress reconvenes. Many Republican legislators are eager to move swiftly on the appropriations process before the Republican National Convention starts July 31 in Philadelphia.

With regard to the Senate's foreign operations bill, the OMB objects both to funding conditions and funding levels for a number of programs.

-- Russia/Chechnya: OMB opposes language that would cut off all aid to the Russian government over Russia's use of military force against civilians and violations of human rights in Chechnya. OMB says such action would shut down cooperative nuclear threat reduction and infectious disease control programs with Russia that are vital to U.S. interests.

-- Kosovo: OMB opposes linkage of U.S. contributions to certification that U.S. contributions do not exceed 15 percent of total obligations and expenditures by all donors. "This approach would cede U.S. sovereignty to foreign nations by handcuffing our contributions to their contributions, and it would call U.S. credibility and commitments into question," OMB said. Many U.S. lawmakers are incensed that European allies are not making good on pledges of financial support for the reconstruction of Kosovo.

-- International debt reduction: OMB said slashing the administration's request for $262 million for debt reduction programs by $187 million, or 71 percent, is excessive. Funding at this level would magnify the debt problems of many of the poorest countries "because other bilateral donors will base their future contributions to the HIPC [Highly Indebted Poorest Countries initiative] on a substantial U.S. contribution," OMB said.

-- Non-proliferation, Anti-terrorism, Demining: OMB said cutting $96.5 million, or 31 percent, from the administration's request of $311.5 million would have a particularly severe impact on U.S. efforts to stop North Korea from developing nuclear weapons and to provide employment for scientists in the former Soviet Union who could be hired by other states to develop weapons of mass destruction, OMB said.

-- Peacekeeping Operations: Slicing $49 million, or 37 percent, off the administration's request of $134 million would jeopardize peacekeeping operations in East Timor, Africa and other conflict points, OMB said.

-- Multilateral Development Banks: Cutting $326 million, or 24 percent, from the administration's request of $1,354 million would complicate the problem of U.S. payment arrears and undermine U.S. ability to exercise leadership in international organizations, OMB said.

-- International Narcotics Control and Law Enforcement: Cutting $92 million, or 29 percent, from the administration's request of $312 million would reduce funding to pre-1999 levels at a time that the United States must maintain a global effort to fight the scourge of drugs. In a related action, Congress already approved $1,300 million to fund Plan Colombia, a program designed to help the Colombian government fight narco-traffickers who control large portions of the country. Money for Plan Colombia was approved in a supplemental spending bill for the current fiscal year. President Clinton welcomed the bill.

-- Assistance to the Independent States of the Former Soviet Union: Cutting $55 million, or 7 percent, from the administration's request of $830 million would weaken the U.S. ability to support their transition to democracy and free markets, OMB said.

-- Economic Support Fund: Cutting $93 million, or 4 percent, from the administration's request of $2,313 million would hurt crucial foreign policy programs, including those for Nigeria and Indonesia, two countries that the secretary of state has identified as key transition democracies, OMB said.

-- U.S. Export-Import Bank: Cutting $195 million, or 20 percent, from the administration's request of $963 million would reduce the bank's capacity to support U.S. exports below the FY00 level, OMB said.

-- Peace Corps: Cutting $55 million, or 20 percent, off the administration's request of $275 million would force the Peace Corps to reduce the number of incoming volunteers to a level not seen since 1987, OMB said.

-- U.S. Agency for International Development (USAID): A reduction of $172 million, or 8 percent, from the administration's request of $2,124 million would weaken USAID's efforts to support economic and democratic growth and cope with environmental degradation, OMB said. OMB expressed appreciation for increasing the level of spending for HIV/AIDS but asked for another $19 million to provide full funding for the administration's request of $244 million.

-- International Organizations and Programs: Cutting $16 million, or 5 percent, from the administration's request of $357 million would result in sizable cuts to important democracy and environmental programs such as the Organization of American States Fund for Strengthening Democracy and the Montreal Protocol Fund for the Protection of the Ozone Layer, OMB said.

OMB also protested the termination of funding for the Inter-American Foundation and funding cuts for the African Development Foundation, Migration and Refugee Assistance, the Trade and Development Agency and Foreign Military Financing.

OMB's objections to the foreign operations bill that the House Appropriations Committee has approved are similar to its concerns with the Senate bill. In a letter to House Appropriations Committee Chairman Bill Young, OMB Director Lew listed the same under funded items mentioned above as reasons for recommending a veto of the pending House version of the foreign operations spending bill.

However, in contrast to the Senate bill, OMB singled out House-imposed restrictions on expenditures for international family planning providers as "highly objectionable." As in the past two years, some House members intend to prevent U.S. aid from going to governments and aid groups that support abortion. The House bill freezes family planning expenditures at $385 million, $156 million below the administration's request.

OMB said if the House drops its restrictions and restores full family planning funding, it "would help millions of additional women bear their children at the healthiest times for both mother and baby."

President Clinton has said he will not sign a bill with the same family planning restrictions that he signed last year. A source at the House Appropriations Committee said she would not be surprised if the foreign operations budget becomes deadlocked because of overall funding levels and the family planning issue.

The full House is expected to vote on the foreign operations budget between July 11 and 14, the source said. A Senate and House conference committee to produce a unified bill may or may not come before the end of July, she added.

The foreign operations budget was the subject of presidential vetoes, stormy debates and continuing resolutions during the past two years. For FY99, the issue was supplemental funding for the International Monetary Fund to deal with financial crises in Russia and other developing countries. In FY00, the confrontation dealt with financial support for the Middle East peace process.

(The Washington File is a product of the Office of International Information Programs, U.S. Department of State. Web site: usinfo.state.gov)
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