Statement of Administration Policy: H.R. 5750 - FREEDOM Support Act

(House)
(Fascell (D) FL and 12 others)

The Administration supports House passage of H.R. 5750.

H.R. 5750 would provide the President with a number of authorities which he requested in his proposed FREEDOM Support Act, transmitted to Congress on April 3, 1992. H.R. 5750 provides technical assistance to the newly independent states (NTS) of the former Soviet Union, expands diplomatic and people- to-people contacts, and promotes dismantlement and destruction of weapons of mass destruction. It includes both the authorization and appropriation for an increase in the U.S. quota to the International Monetary Fund (IMF), which is vital to support economic reforms in the NIS.

However, H.R. 5750 differs in several important ways from the President's proposed FREEDOM Support Act. Of particular concern:

—   The funds authorized to be appropriated by H.R. 5750 are divided into several different accounts (rather than in a single account). This would limit the President's flexibility in allocating resources where they can be most efficiently used. In addition, the underlying authorities in H.R. 5750 are drafted as amendments to the Foreign Assistance Act (FAA). This detracts from the President's request for free-standing legislation to create a comprehensive, innovative assistance package for the NIS.

—   H.R. 5750 contains no provision to use authorized funds for Export-Import Bank or Overseas Private Investment Corporation programs, or to expand the available uses of Nunn-Lugar funds, as proposed in the Administration's bill.

—   H.R. 5750 places conditions (such as those in section 103) that must be satisfied in order to provide assistance. Provisions such as sections 502 and 504 could raise budgetary scoring concerns should appropriations be provided. Further, section 502 reduces procurement authorized for Defense agencies by $40 million.

—   Several provisions (e.g., section 202 on the Democracy Corps and Title VI on Space and Trade Cooperation) are drafted in a manner that would unduly interfere with Executive branch flexibility.

— The bill sets targeted levels for increased high value added agricultural exports. These could risk restricting the export of bulk commodities and compromise the commercial nature of the GSM programs.

Nevertheless, passage of H.R. 5750 would serve important United States interests by enhancing U.S. security, expanding U.S. export and investment opportunities, and promoting American values abroad. The Administration will work with Congress to address the above-mentioned concerns as the legislative process moves forward.

The IMF quota increase provision would result in zero outlays.