Statement of Administration Policy: H.R. 4471 - Miscellaneous International Affairs Authorization Act of 1988

(FINAL - as sent to Hill)

(House)
(Rep. Fascell (D) Florida and four others)

If H.R. 4471 is presented to the President in a form that includes the text of H.R. 3100, the House-passed Foreign Assistance Authorization, his senior advisers would recommend that he veto the bill. However, the Administration would support enactment of H.R. 4471 in the form it was reported by the Committee on Foreign Affairs.

The Administration opposes H.R. 3100 because the bill includes numerous earmarks, ceilings, limitations, and other constraints on the implementation of the Administration's foreign assistance programs. These extensive restrictions would impede a continuation of existing programs and the ability to respond-;to changing foreign policy challenges. In particular, these restrictions would:

—    Restrain our ability to carry out normal foreign assistance relationships with security assistance recipients that also wish independently to support the Nicaraguan Democratic Resistance. These restrictions also raise constitutional concerns.

—    Earmark assistance for particular countries and programs in excess of the Administration's request and thus substantially reduces assistance for other countries with which the United States shares significant foreign policy and humanitarian interests.

—    Micro-manage the foreign assistance program, compounding an already complex administration of foreign assistance activities and adding inevitable delay and inefficiencies in the provision of assistance.

—    Cause serious harm to our bilateral relations with strategically important allies and friends.

With respect to H.R. 4471 as reported, the Administration will work in the Senate to seek inclusion of the Administration's proposal for investment policy reform. Investment policy reform is key to the Administration's effort to promote favorable investment climates abroad.

The Administration has no objection to providing the Overseas Private Investment Corporation (OPIC) with legal authority to operate in Hungary as authorized by H.R. 4471. However, pursuant to statutory requirements and Administration policy, respectively, commencement of the OPIC program in Hungary will be contingent on a determination regarding whether Hungary has taken steps to accord worker rights and an assessment of Hungary's investment policies.