Statement of Administration Policy: S. 1435 - International Security and Economic Cooperation Act of 1991

(Senate)
(Pell (D) Rhode Island)

S. 1435 contains several provisions that give flexibility to the President to carry out foreign policy, but does not provide for the major reform of foreign aid requested by the Administration. The bill contains a number of seriously objectionable provisions. In particular, there is a provision on abortion (Section 103 (a)), which the President would veto and another provision on cargo preference (Section 305) on which the President's senior advisers would recommend veto.

Section 103(a) of the bill reverses the existing Mexico City policy, which denies U.S. foreign assistance to foreign nongovernmental organizations that promote abortion as a method of family planning.

Section 305 establishes additional U.S. cargo preference requirements for the Economic Support Fund. This provision would severely complicate the provision of economic assistance in direct contravention to the reforms sought by the Administration for the foreign assistance program. It also would impede the conduct of foreign policy and adversely affect U.S. exports that must be transported by sea.

The Administration is deeply disappointed that neither the House- passed bill nor the Senate Committee-reported bill represent the fundamental and much needed rewrite of foreign aid legislation necessary to meet the new challenges of the 1990s and beyond.

Other objectionable aspects of the bill include:

—  the Middle East arms policy language and arms suppliers provisions which are unnecessary in view of the President's recently announced arms control initiative;

—  all country-specific provisions that would establish new constraints on the provision of foreign assistance, including those regarding Cambodia and Syria;

—  continuation of multiple development assistance accounts instead of the Administration's requested consolidation of Agency for International Development (AID) accounts into a single flexible source of funding that would more rationally provide assistance for various programs and countries;

—  an additional unworkable procedural requirement suspending obligation of funds for development projects until environmental impact options are considered and opened to public comment;

—  the limitations on both the level and type of assistance to Turkey and Greece, which ignore critical military and political considerations affecting the region;

—  the amendments in section 402 that make Foreign Military Financing an all grant program;

—  designation and limitation by the Senate of countries that are considered non-NATO allies;

—  the failure to adopt several provisions requested by the Administration including authorization for a Democracy Contingency Fund, enhanced authorities to furnish excess defense articles, and revisions in the restrictions on furnishing assistance to countries;

—  Enterprise for the Americas (EAI) provisions that would make local currencies intended to be used solely for important environmental activities available for other purposes, lead to conflicting regimes for management of local currencies available from P.L. 480 debt forgiveness and from AID debt forgiveness, and undermine U.S. ability to negotiate the EAI investment fund by limiting potential beneficiaries;

—  narcotics control assistance provisions that retain (and in some eases tighten) current restrictions and certifications and fail to provide the required flexibility in assisting Andean Initiative countries in particular;

—  additional burdensome reporting requirements, especially those contained in sections 513 and 646;

—  a prohibition on sales of depleted uranium shells without the current national interest exception;

—  the additional requirement for Senate advice and confirmation for specific positions in AID which would restrict the President's flexibility and discretion in the management of AID;

—  holding FY 1993 appropriations authorizations for each program at 1992 levels, which arbitrarily and unduly constrains the President's ability to meet changing circumstances and conditions; and

—  a number of provisions that raise serious constitutional concerns regarding the President's authority to conduct negotiations (sections 414, 657, 722, and 791(b)(4)(5)), his appointment powers (section 678), and his authority to protect national security information from disclosure (sections 608(d) and 646).

Nonetheless, there are a number of favorable provisions, many of which support the Administration's reform and foreign policy objectives. The authorization for an International Monetary Fund quota increase is essential to meeting U.S. responsibilities in the international economy. Section 110, the special waiver authority for certain AID programs, and other sections that enhance authorities to respond to emergencies, provide an important measure of flexibility to the Executive branch. Provisions on assistance to Eastern Europe and the streamlining of reprogramming notifications are other examples of positive contributions to current law.