Memorandum on Determination and Certification To Permit U.S. Contributions to the International Fund for Ireland and Northern Ireland

Presidential Determination No. 92-24

Memorandum for the Secretary of State

Pursuant to section 5(c) of the Anglo-Irish Agreement Support Act of 1986 (Public Law 99-415), I hereby determine and certify that: (1) the Board of the International Fund established by the Anglo-Irish Agreement is, as a whole, broadly representative of the interests of the communities in Ireland and Northern Ireland; and (2) disbursements from the International Fund (a) will be distributed in accordance with the principle of equality of opportunity and nondiscrimination in employment, without regard to religious affiliation; and (b) will address the needs of both communities in Northern Ireland.

You are authorized and directed to transmit this determination and certification to the Congress, together with the Memorandum of Explanation, and to publish it in the Federal Register.

GEORGE BUSH

THE WHITE HOUSE

Washington, April 27, 1992.

March 12, 1992

MEMORANDUM FOR: THE PRESIDENT

FROM: James A. Baker, III

SUBJECT: Certification to Permit U.S. Contributions to the International Fund for Ireland

The Anglo-Irish Agreement Support Act of 1986, P.L. 99-415 ("the Act"), authorizes United States contributions to the International Fund for Ireland ("the Fund") established pursuant to the November 15, 1985, agreement between the United Kingdom and Ireland. The Act established the U.S. contribution as $ 120 million to be disbursed during fiscal years 1986, 1987,and 1988. Congress earmarked an additional $ 10 million for FY 1989, and $ 20 million each for FY 1990 and FY 1991.

U.S. contributions may be used only to "support and promote economic and social reconstruction and development" in Ireland and Northern Ireland. Section 5(c) requires that each fiscal year, prior to the U.S. contribution, the President certify to the Congress that he is satisfied the following conditions have been met: (1) the Board of Directors of the Fund, as a whole, is broadly representative of the interests of the communities in Ireland and Northern Ireland; and (2) disbursements from the Fund (a) will be distributed in accordance with the principle of equality of opportunity and nondiscrimination in employment, without regard to religious affiliation; and (b) will address the needs of both communities in Northern Ireland. Each certification must include a detailed explanation of the basis for the President's decision.

Satisfaction of Conditions for Certification

The present composition of the Board of Directors of the Fund, the arrangements for disbursement of its resources, and experience to date in approving projects satisfy the conditions set forth in Section 5(c).

(1) Composition of the Board

The method by which the Board is selected assures that it is broadly representative of the interests of the communities of Ireland and Northern Ireland, as required by Section 5(c)(1). The Board of Directors of the Fund consists of seven representatives; a chairman and three members each from Ireland and Northern Ireland. Pursuant to the Anglo-Irish Agreement, members are appointed jointly by the U.K. and Irish governments. In addition, the residences of the members are dispersed over a variety of geographic areas in Ireland and Northern Ireland.

(2) Equitable Principles of Disbursements

By its charter, the Fund is required to make disbursements "consistent with the economic and social policies of the respective governments." To that end, the guidelines the Fund has established for awards are specifically made subject to legislation governing Northern Ireland. The legislation prohibits employment discrimination on the grounds of religious belief or political opinion.

In addition, equal representation of Northern Ireland and Ireland officials and the cross-community participation within all of the management units of the Fund ensure resources are disbursed in accordance with the principle of "non-discrimination and equality of opportunity in employment without regard to religious affiliation" (Section 5(c)(2)(A) of the Anglo-Irish Support Act). Criteria by which to implement this principle are clearly spelled out and are built into the well defined project appraisal and approval system, and the monitoring and evaluation systems. All grantees are required to sign a pledge, using the exact words employed by the U.S. Congress, that any money allocated be used in a nondiscriminatory manner.

The Fund's systems and criteria also ensure that awards "will address the needs of both communities in Northern Ireland" (Section 5(c)(2)(B) of the "Anglo-Irish Support Act"). The Fund's charter establishes employment generation and investment promotion in both communities as top funding priorities. The Fund solicits and approves proposals consistent with its employment generation and investment objectives, from a broad cross-section of private groups, investors, and individual citizens from both communities.

Finally, the geographic distribution of projects approved throughout Ireland and Northern Ireland demonstrates that the needs of both religious communities are being met.

A detailed statement of the basis on which the Fund disburses resources, and its effectiveness in reaching both communities is contained in the attached Memorandum of Explanation.

MEMORANDUM OF EXPLANATION FOR CERTIFICATION U.S. CONTRIBUTION TO THE INTERNATIONAL FUND FOR IRELAND

I. INTRODUCTION

This report has been prepared to comply with legislative requirements associated with the Anglo-Irish Agreement Support Act of 1986, Public Law 99-415 ("the Act").

Section 5(c) of the Act requires that each fiscal year, prior to contributions to the International Fund for Ireland, the President certify to the Congress that he is satisfied the following conditions have been met:

A.) The Board of Directors of the International Fund, as a whole, is broadly representative of the interests of the communities of Ireland and Northern Ireland;

B.) Disbursements from the International Fund:

1) will be distributed in accordance with the principle of equality of opportunity and nondiscrimination in employment, without regard to religious affiliation, and

2) will address the needs of both communities in Northern Ireland.

II. BACKGROUND

A. Establishment and Operation of the Fund

The International Fund for Ireland ("the Fund") was formally established as an independent entity on December 12, 1986, in keeping with the provisions of the Anglo-Irish Agreement of November 15, 1985. The overall objectives of the Fund are to promote economic and social advancement and to encourage contact, dialogue, and reconciliation between nationalists and unionists throughout Ireland and Northern Ireland. The Anglo-Irish Agreement states that the Fund shall accomplish these objectives by stimulating private investment and encouraging voluntary efforts with special emphasis on projects promoting communal reconciliation. The Agreement also stipulated the establishment of two investment companies under the Fund.

The Fund is an independent entity which is administered by a Board of Directors appointed jointly by the British and Irish governments. The Board is guided by a Joint Advisory Committee consisting of senior civil servants drawn equally from Northern Ireland and Ireland. The Advisory Committee's principal role is to advise the Board on the economic and social policies and priorities of the two governments and to maximize the impact of assistance by avoiding duplication of activity. The Board is supported by a Secretariat composed of administrators from the two jurisdictions. The Secretariat is headed by two Joint Director Generals, one from each side. The Fund's operating expenses are paid by the British and Irish governments.

The Fund's activities are executed primarily through program teams in the following areas: Business Enterprise, Tourism, Urban Development, Agriculture and Fisheries, Science and Technology, and the Wider Horizons Program. These program teams are composed of an equal number of representatives from Northern Ireland and Ireland. The teams are administered by joint-chairmen who keep the Board of Directors apprised of their respective program teams' activities.

In an effort to focus on the more disadvantaged areas, the Fund directs more than half of the resources available in the program sectors to disadvantaged areas in Northern Ireland. The Fund also created three additional program schemes: Community Economic Regeneration, which focuses community driven regeneration of economic activity in urban areas; Community Relations, designed to promote reconciliation; and Disadvantaged Areas Special Projects.

In addition to the above activities, the Board has recently begun implementing the Community Regeneration and Improvement Special Programme (CRISP). The program is designated for disadvantaged areas in Northern Ireland and focuses the Fund's resources on smaller towns and villages by linking a series of projects from the various program areas together. This way, the Fund is able to guarantee maximum value for its money and present a more comprehensive and dynamic development scheme.

B. Fund Contributions

The Fund receives contributions directly from bilateral and multilateral donors. The U.S. contribution thus far totals $ 130 million, including $ 10 million in FY 1989. Under the Foreign Operations, Export Financing, and Related Programs Appropriations Act, Congress appropriated an additional $ 20 million for FY 1990. A separate appropriation in FY 1991 provides yet another $ 20 million. The European Community disbursed 15 million European Currency Units (US$ 20 million) per year to the Fund for the years 1989, 1990 and 1991. New Zealand contributed NZ$ 300,000 in FY 1990 and Canada has pledged Can$ 10 million.

Each donor is entitled to appoint a representative to attend all Board meetings as a non-voting observer. Observers receive all Board papers and provide guidance to the Fund on behalf of their respective donor countries. The Honorable Eugene J. McCaffrey, Sr. was appointed U.S. Observer to the International Fund for Ireland in April 1990. Mary Barden Keegan serves as the alternate U.S. Observer.

C. Program Implementation

As of October of 1990, the Fund has approved a total of 1,523 projects and allocated over $ 266 million, including amounts leveraged through government agencies and the private sector, to its various program areas (compared to $ 174 million the previous year). Some $ 180 million has been committed to approved projects within the various programs. The Fund has disbursed approximately $ 150 million to ongoing and completed projects, including $ 26 million to the two investment companies.

Individual project applications continue to represent a majority of the projects for funding. However, the program teams are assisting various communities in identifying and preparing proposals through regular contact and consultation with a number of area Economic Development Consultants. The Consultants serve as a point of contact for local communities, provide valuable technical assistance and advice, and help to speed program implementation.

D. Job Creation and Additional Investment

Two elements identified as priorities of the U.S. Government in its contribution to the Fund are job creation and the leveraging of additional investment into the economy. Both elements have been adopted by the Fund in the implementation of its program.

The Fund agrees that job creation is an essential factor in determining the allocation of Fund resources and clearly places an emphasis on the job creation potential of each project considered for funding. It is estimated that the Fund created 11,823 new jobs and more than 4,703 temporary jobs in the construction industry. While calculations of indirect employment are less exact, the Fund estimates that more than 4,600 temporary jobs have been created.

The Fund has also been successful in leveraging new investment. Of the $ 180 million of Fund resources committed to approved projects, another $ 180 million and $ 134 million of private and government resources, respectively, have been invested. Thus every dollar that the Fund has committed has resulted in an additional $ 1.74 committed from other sources.

For additional information on the historical background of the Fund and the development of its policies and programs, please refer to the International Fund for Ireland 1990 Annual Report.

III. PRESIDENTIAL CERTIFICATION ELEMENTS

Each fiscal year, prior to the United States making a contribution to the Fund, the President must certify that he is satisfied that the Fund has complied with the legislative requirements in the Act. The following discusses these elements.

A. Board Representation

The Board of Directors consists of seven members; three nominated by the British government, three nominated by the Irish government, and the Chairman. Board members are approved by both sides through consultations between the two governments. The Board, by design and agreement, is representative of the communities in both Northern Ireland and Ireland. It should be noted, however, that there are presently no women serving on the Board.

The Board meets once every two months, primarily to review policy and procedural issues and to approve or reject proposals forwarded by the program teams for consideration. In addition, each Board member is responsible for coordinating with specific program teams and is consulted on a regular basis.

The Board members are as follows:

Mr. John B. McGuckian, Chairman
Mr. Denis Calvert
Mr. John Craig
Mr. Paddy Duffy
Mr. Pat Kenny
Mr. Neil McCann
Mr. Willie McCarter

The Chairman is from Ballymena in County Antrim, Northern Ireland. Mr. McGuckian holds positions on various other public boards, including Chairman of the Board of the Northern Ireland Allied Irish Bank, Chairman of Ulster Television, and Pro-Chancellor of Queens University in Belfast. Mr. McGuckian is also a member of committees overseeing such organizations as Cooperation North and Northern Ireland Voluntary Trust.

As in the past, the present Board is noted for its professionalism and integrity in setting policy and approving projects. The Board has taken a proactive role in promoting the Fund throughout Northern Ireland and Ireland as well as internationally. In addition, the Board has recently made significant inroads to attract proposals from historically hardline organizations from both traditions, most notably the Apprentice Boys of Londonderry, in an effort to break down social and political barriers and promote reconciliation.

B. Disbursements From the International Fund

The Fund's structure and policy framework ensure that resources are distributed in accordance with the principle of equality of opportunity and nondiscrimination in employment, without regard to religious affiliation, and that these resources address the needs of both communities in Northern Ireland and the six border counties of the Republic of Ireland.

The board has developed its policies for disbursement of resources taking into account the terms of the Agreement under which it was established, the wishes of the donor countries, and the need to supplement the economic and social policies of the two governments. The Board structure and policy framework is manifest in the internal checks and balances in the Fund's appraisal, approval, and management systems. Also, the wide geographical distribution of approved projects enhances the Fund's efforts to meet the needs of both communities. There have been notable achievements by the Fund in the areas of job creation, leveraging of private investment, and reconciliation. In addition, the Fund has made concerted efforts to target the most disadvantaged areas through CRISP and other special programs as well as the through the work of the Development Consultants.

1. Distribution of disbursements in accordance with the principle of equality of opportunity and nondiscrimination in employment, without regard to religious affiliation.

Structure of the Fund. Ireland and Northern Ireland are equally represented by members of the Fund's Board of Directors, Advisory Committee, Secretariat, and Program Teams. These individuals are highly respected for their professional competence, integrity, and commitment to the Fund's objectives. The Advisory Committee, as mentioned above, is composed of senior officials of both the British and Irish governments and provides guidance and support for the Board. The Secretariat staff maintains the day-to-day operations of the Fund and have been carefully selected for their administrative skills and judgment. The Program Teams are staffed with technical and administrative professionals who are committed to the Fund's operating principles of nondiscrimination. Review of the IFI portfolio of projects and visits to selected sites by Agency for International Development (A.I.D.) personnel has confirmed that the Fund has assembled a competent and professional staff who have cultivated and exercised sound project approval and management procedures.

Policy Framework. All Fund publications and solicitations for proposals clearly spell out the Fund's commitment to equality of opportunity and nondiscrimination. All successful applicants are required by the Board to agree to the following prior to receiving an award:

"Acceptance of a grant or loan under this scheme will be deemed to signify the applicant's acceptance of the principle of equality of opportunity and nondiscrimination in employment, without regard to religious affiliation and that the applicant will be expected to use the money in accordance with this principle."

The letter of offer clearly states that any violation of this agreement will require immediate repayment of resources. To date, the Fund has not had to request repayment.

Equality of opportunity requirements are also enforced in Northern Ireland under the Fair Employment (Northern Ireland) Act of 1989. This Act makes employment discrimination on the grounds of religious belief or public opinion illegal. The Act is designed to eradicate job discrimination and ensure the active practice of fair employment opportunity throughout Northern Ireland.

Project Appraisal and Approval. The Fund has instituted a clear and systematic appraisal and approval system. Each Program Team has signed agreements with the Fund Secretariat which spell out the criteria upon which all applications are made. As mentioned above, the Program Teams consist of officials from various government agencies, both North and South, which, in close cooperation with the Secretariat, help to bring the programs to fruition. The Team members, chosen for their expertise in their particular sector, review each project based on its merit using standard economic and financial analysis tools, as well as criteria relevant to their technical field.

Projects must also be consistent with the economic and social policies and priorities of the British and Irish governments. Each government reserves the right to veto support for activities proposed which violate their stated policies. No resources are to be used, for example, to improve the standing of or to further the goals of any paramilitary organization, either directly or indirectly. The Fund, the British government, and the Irish government are, however, committed to supporting activities which contribute to viable, self-sustaining growth, prosperity, and stability. In addition, it is hoped that the projects will have a positive impact on increasing respect for human rights and fundamental freedoms for citizens of both traditions from Northern Ireland and the Republic.

Thus, within the Fund's policy guidelines and the established criteria for the evaluation and approval process, projects are accepted for funding, rejected, or forwarded to an appropriate government agency for possible support from existing government programs. Applications are processed in a timely and efficient manner, consistent with a proper and prudent review of projects. In addition, of course, a considerable responsibility rests with the individual promoters of projects who must take the lead in completing their share of the financial package and implementing the project to a stage where payment can be made.

Each decision to approve, disapprove, or forward a project to a government agency requires the recommendation of the relevant program team, the endorsement of the two Board members supervising the team, and the approval of the Fund Secretariat. Any projects which are controversial, raise policy issues, or exceed the program team's delegation of authority, are forwarded to the Board for consideration.

Equality of opportunity and nondiscrimination is the guiding principle under which the Fund operates. Projects are reviewed on merit alone, without regard to political or religious affiliations of the applicants. The cross-community composition of the Fund Board, the Secretariat, and the program teams ensures this principle.

2. Addressing the needs of both communities in Northern Ireland.

In order to comply with British law, the principles under which the Fund was established, and the U.S. Government priorities under which our contribution was made, religious affiliation is not a factor in the approval process. Fund officials are not aware of an applicants religion. It is generally known, however, which religious majority is predominant within a specific geographical area.

During the program review visit by A.I.D. in December of 1990, management officials, community leaders, grantees, and program implementors were asked to comment on the extent to which the needs of both communities were being met. All respondents believed that every effort was being made to strengthen the cross-community nature of the programs. Many spoke of how, through Fund activities, they were able to experience for the first time a working or recreational experience with people of the opposite tradition. Such liaisons have produced cross-community boards of directors (under such organizations as the enterprise centers), cross-community enterprise matchmaking, cross-border joint ventures (such as the Derry-Galway-Boston Trade Fair), and genuine friendships. The civil servants of both governments in laboring together on the Fund have also developed excellent working, as well as, personal relationships with their counterparts. Such interaction at all levels of government contributes to reconciliation through dialogue and cooperation. The nature and extent of joint participation and government coordination underscores the desire of both traditions to strive for economic prosperity and political stability for everyone.

As discussed above, the Fund has made a concerted effort to direct assistance to the more economically disadvantaged areas. Special programs, such as CRISP, have been developed toward this end. The work of the Development Consultants is unsurpassed in assisting the disadvantaged communities to develop ideas and proposals to help themselves through the Fund. The Consultants participate in establishing local groups, ensure cross-community participation whenever possible, and assist groups in creating viable projects. In many cases, however, the IFI merely serves as a catalyst for community initiatives that have been developing independently of the Fund. The Consultants are also instrumental in contributing to a greater overall understanding and positive perception of the Fund among the people of both communities.

IV. CONCLUSION

A review of Fund activities and a visit to Ireland and Northern Ireland by an A.I.D. officer confirms that the Board of Directors has maintained policies and procedures designed to guarantee that both traditions benefit from Fund activities. The Board's operating principles ensure that project decisions are made on the basis of merit. In addition, it has been concluded that Fund resources are being distributed in a manner consistent with its mandate as stated above. All grantees are made aware of the principles of equality of opportunity and nondiscrimination in employment, stipulated by acceptance of any grant monies.

This report concludes that:

The Board of Directors of the International Fund for Ireland, as a whole, is broadly representative of the interests of the communities in Ireland and Northern Ireland.

Disbursements from the Fund are distributed in accordance with the principle of equality of opportunity and non-discrimination in employment, without regard to religious affiliation, and address the needs of both communities in Northern Ireland.

Appendix I

PROJECTS APPROVED, PROGRAM ALLOCATIONS,
COMMITMENTS, AND DISBURSEMENTS ($ Million)

Appendix II

ESTIMATED EMPLOYMENT GENERATED

Appendix III

AMOUNT LEVERAGED ON APPROVED PROJECTS COMMITMENTS, AND DISBURSEMENTS ($ Million)

* An amount of $1.9 million has been included to take into account the current running costs of the Marine Research vessel funded by the Northern Ireland Department of Agriculture.

Appendix IV

GEOGRAPHICAL DISTRIBUTION OF IFI APPROVED PROJECTS