Statement of Administration Policy: H.R. 2333 - State Department, USIA. and Related Agencies Authorization for Fiscal Years 1994-1995 & H.R. 2404 - Foreign Assistance Authorization Act of 1993

H.R. 2333 - State Department, USIA. and Related Agencies Authorization for Fiscal Years 1994-1995
(House)
(Hamilton (D) Indiana and 2 others)

H.R. 2404 - Foreign Assistance Authorization Act of 1993
(House)
(Hamilton (D) Indiana)

The Administration supports favorable House action on H.R. 2333 and H.R. 2404, but would reserve support on final enactment pending the disposition of several provisions in the bills.

H.R. 2333 and H.R. 2404 authorize appropriations for the Department of State, the United States Information Agency, and related agencies, for foreign assistance programs and for other purposes. These bills also provide necessary authorities to carry out the foreign policy of the United States. These include: continuation of authorities for administering programs in the new independent states (NIS) of the former Soviet Union; provisions that facilitate the Secretary of State's reorganization of the Department of State in a manner that reflects the priorities of the post-Cold War era; and provision of enhanced debt forgiveness to the poorest African countries.

Nevertheless, the Administration is concerned about several provisions of the bills that need to be deleted or modified as the legislative process continues. These include:

Foreign Policy Concerns

— Provisions on Bosnia-Herzegovina authorizing the President to lift the United Nations arms embargo on Bosnia and to provide military assistance to the Bosnian government. Although the Administration has favored lifting the UN arms embargo on Bosnia-Herzegovina, the provisions in H.R. 2333 could imply unilateral contravention of the existing UN embargo.

Such a position could weaken international support for other UN-sanctioned embargoes and would contradict our generally multilateral approach to addressing the crisis in the former Yugoslavia.

—    Restrictions on assistance to the NIS. While the Administration has strong concerns about Russia or any of the other new independent states providing subsidies to Cuba and military assistance to Iran, it opposes the manner in which the bill conditions aid to Russia and other states with regard to these matters. These provisions could undermine one of the President's highest foreign policy priorities which is support for democratic and free market reform in this critical region of the world.

—    Restrictions on arms sales by the U.S. Government to countries participating in the Arab League boycott of Israel at a time when we are making progress with Arab states. In addition, provisions regarding the Arab League boycott may compromise the ability of the U.S. Government to enforce and administer its antiboycott laws.

—    Limitations on U.S. contributions to certain international organizations pending Presidential certifications regarding the activities of those organizations (sections 103(e)(2)(C) and (e)(3)(B) and (C)), which jeopardize U.S. leadership in these international efforts.

Management Concerns

—    Enhancements of the Arms Control and Disarmament Agency in Title III, which are, on the whole, too far-reaching. The Administration is working with the House Foreign Affairs Committee to have an Administration substitute to this Title offered as an amendment when the bill goes to the floor.

—    Reduced authorizations of appropriations for State Department Salaries and Expenses and other operating accounts in fiscal years 1994 and 1995. These authorizations are below the President's request by $36 million for fiscal year 1994. The fiscal year 1994 cut is further exacerbated by an $11.5 million earmark for the operating expenses of the Refugee Bureau. A number of authorizations of foreign assistance appropriations also differ from the Administration's request, including reductions in security assistance programs.

—    A requirement that the President transfer $300 million to the Trade and Development Agency to carry out a capital projects pilot program. This provision would divert scarce resources from vital projects and create unnecessary, expensive new authorities that duplicate those of the Export-Import Bank.

—    A requirement that AID deobligate all funds unexpended after four years. This amendment would jeopardize many vital development programs such as child survival, health, and education programs which are long-term in nature, and programs in countries such as Egypt where the United States has major political commitments.

—    An earmark of funds to open a consulate in Cluj, Romania, which micromanages the conduct of foreign relations.

—    Restrictions, without a waiver, on granting limited career extensions to members of the Senior Foreign Service. This provision would create management problems for AID and USIA.

Other Concerns

—    Authorities providing for a surcharge on the processing of certain visas (section 124(a)) and other documents, which have not been sufficiently reviewed by the Administration. Further review is required to examine issues raised by the surcharge, including the implications for worldwide travel of U.S. citizens due to the potential application of such fees via reciprocal agreements. The Administration is also concerned that this provision would provide additional funding resources outside established budget review and appropriation processes.

—    Voluntary retirement incentives for members of the foreign service in State, USIA, and AID. These agencies do not face large cutbacks in staff which would justify this separation incentive. Normal attrition should achieve reductions consistent with Administration policy without the additional commitment of scarce Federal resources.

—    Several constitutionally questionable provisions that infringe on the President's authority to conduct foreign affairs (section 187(a), (c), and (e)) or his authority as Commander-in-Chief (section 2104 (b)(4)).

—    The language in section 133(1)(1) could be misinterpreted as changing current Executive Branch authorities and responsibilities for the formulation of the Administration's position on international telecommunications policies.

The Administration would oppose any amendment that has the effect of limiting the use of cash transfer assistance and expanding the application of cargo preference to that assistance.

While the Administration would support favorable House action on H.R. 2333 and H.R. 2404, the Administration is working on a comprehensive rewrite of the foreign assistance authorities that shall be proposed in the coming year. This rewrite is critical in that it would establish a framework of authorities that is consistent with the challenges of the post-Cold War era and conducive to carrying out U.S. foreign policy. The Administration intends to work closely with Congress as it formulates its proposal.

Pay-As-You-Go Scoring

H.R. 2333 would affect receipts and direct spending; therefore, it is subject to the pay-as-you-go requirement of the Omnibus Budget Reconciliation Act (OBRA) of 1990. OMB's preliminary scoring estimate of this bill are presented in the table below. Final scoring of this legislation may deviate from this estimate. If H.R. 2333 were enacted, final OMB scoring estimates would be published within 5 days of enactment, as required by OBRA. The cumulative effects of all enacted legislation on direct spending and receipts will be reported at the end of the Congressional session, as required by OBRA.

PAY-AS-YOU-GO ESTIMATES
($ in millions)