*EPF204 03/13/01
State Department Report, Monday, March 12
(Corrected Copy: International Affairs Budget) (520)

BUSH BUDGET BOOSTS INTERNATIONAL SPENDING 5.29 PERCENT

The Bush administration's fiscal year 2002 budget proposes to increase funding for international affairs by 5.29 percent, or $1,200 million, to $23,848 million.

The budget increase includes funding for the Andean Initiative, as well as increases for HIV/AIDS eradication, funding for combating trafficking in women, and for basic education for children, Joseph Bowab, acting director of the State Department's Office of Resources, Plans and Policy, said March 12 at a State Department briefing. More specific information on country allocations will be made when the entire budget is released by the White House and the State Department April 3, Bowab said.

The 5.29 percent increase in FY 2002 funding for international affairs compares with $22,648 million allocated for FY 2001, Bowab said. However, the increase is only slightly above the $23,516 million allocated in FY 2000, according to a department fact sheet.

The FY 2002 budget proposes $15,168 million for foreign operations spending, an increase of 1.9 percent from $14,884 million in FY 2001, according to the fact sheet.

Deputy Assistant Secretary James Millette of the Office of Budget and Planning said the State Department's administrative budget contained in the overall international affairs spending package is focused on three major areas:

-- hiring 360 foreign service and civil services employees in FY 2002, and 186 security personnel;
-- increasing spending for information technology improvements to $273 million to provide for expanded classified connections at U.S. posts worldwide and to expand Internet access for all personnel in Washington and abroad; and
-- increased spending on security by $1,300 million for readiness and infrastructure that includes $665 million for the construction of secure embassies, $211 million for the continuation of a perimeter security program, and $424 million for security readiness worldwide.

Millette said the program to hire new personnel is directed at filling a shortfall of 1,100 employees. He said this will be a multi-year program and this first effort addresses approximately one-third of the requirement. This expanded hiring, he added, is over and above general hiring to fill vacancies created by attrition.

Bowab said HIV/AIDS funds are largely targeted for use in Africa and Asia, but the department is continuing to resolve details with the U.S. Agency for International Development (USAID).

He added that specific bilateral assistance has not been completed yet, but will be ready for the April 3 rollout. The Andean Initiative is a follow-on program to the Plan Colombia program to combat illegal drugs.

Bowab also said part of the budget will include heavy fuel oil payments under the Agreed Framework to North Korea. Funding is included in nonproliferation, antiterrorism, demining and related programs. He said the United States provides approximately 500,000 tons of heavy fuel oil under the Agreed Framework.

Fiscal Year 2002 begins October 1, 2001, and ends the following September 30.

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