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Congressional Budget Justification for
Released by the Office of the Secretary of State
Foreign Operations, Fiscal Year 2001
Resources, Plans and Policy
U.S. Department of State, March 15, 2000
EAST ASIA AND THE PACIFIC
Bureau of East Asian and Pacific Affairs
Statement by
Assistant Secretary Stanley O. RothIntroduction
The East Asia and Pacific region plays a vital role in determining the peace, prosperity and well being of the American people, and accounts for nearly half the world's population, economic output and trade. The interests of four of the world's major powers, three of them nuclear weapons states, intersect in Northeast Asia. In the past decade, the trend toward democracy in the region has gained strength. The Philippines, South Korea, Thailand, Mongolia and Taiwan have consolidated their relatively young democracies. Indonesia, under authoritarian rule for thirty years, is in the midst of an historic democratic transformation. Our military, economic, and political engagement has been a key factor in creating and maintaining the environment for these positive developments.
Our primary objective is to ensure that no Asia Pacific state or alignment of states poses a strategic threat to the United States. To this end it is essential that we strengthen our critical alliance with Japan, seek to engage China in a constructive relationship, and deal effectively with the potential for instability on the Korean peninsula, particularly the spread of weapons of mass destruction and their delivery systems.
Our second objective is to promote economic prosperity and the opening of markets in the region, which are important not only for the American jobs created, but also to underpin peace and stability in the area. Three years after the onset of the Asian financial crisis, most affected economies have turned the corner, but continued efforts are required to maintain positive momentum. There is also a continued need to help maintain social safety nets while urging governments to avoid complacency in these areas. We must support reforms that will enable Asia Pacific countries to sustain long-term economic growth and prevent future crises.
Our third fundamental objective in East Asia is to promote the trend toward more open societies and democratic governments. Indonesia has been identified by the Secretary as one of four key countries undergoing a critical transition to democracy and in need of additional resources. Our efforts to foster democracy in Indonesia are designed to reinforce demands generated locally for good governance and greater respect for human rights.
U.S. Interests
National Security
Peace and security in East Asia and the Pacific are critical to the security of the United States and a sine qua non for economic prosperity of the region and the consolidation of democracy. We maintain nearly 100,000 military personnel in the region, a presence essential to maintaining stability, projecting American influence, assuring the credibility of our five bilateral alliances, and protecting key sea-lanes. The Korean Peninsula remains one of the world's most dangerous flash points; there are a number of other unresolved territorial disputes that could threaten stability; and historical animosities persist. We have built alliance relationships with Japan, the Republic of Korea, Thailand, the Philippines and Australia and have less formal security ties with Singapore, Brunei, Malaysia and other countries.
Our alliance with Japan, and the host nation support that underwrites most of the costs of our 47,000 troops stationed there, anchors our regional military presence. We have made significant progress in strengthening U.S.-Japan security ties through the revision of the guidelines for defense cooperation and the consolidation of our bases on Okinawa. Our treaty commitments to the Republic of Korea, where 37,000 American troops are stationed, play a key role in maintaining peace on the peninsula and help to create the environment for seeking more permanent solutions to North-South tensions through the KEDO program, the Four Party Talks, and North-South dialogue. The most critical funding requirement relates to our efforts to curb nuclear proliferation on the Korean peninsula. Under the Agreed Framework, the U.S. undertook to take the lead in arranging funding for Heavy Fuel Oil (HFO) to replace the energy lost when North Korea shut down its nuclear reactors capable of supporting plutonium production. Fifty million dollars in FY 2001 NADR funds is required to keep this vital program on course.
Following the tragic and accidental bombing of the Chinese Embassy in Belgrade, we negotiated with China to address bomb damage as well as for riot damage to U.S. facilities in China. We agreed to seek $28 million to resolve claims by the Chinese government for property damage and associated costs arising from the bombing. (The agreed Chinese payment of $2.87 million is contingent on the U.S. payment.)
In recent years, Foreign Military Financing (FMF) programs in the Asia Pacific region have been drastically reduced. It is important to reverse this trend if we are to maintain our network of defense and access arrangements in the region. The Philippine Senate's ratification of the Visiting Forces Agreement in 1999 is helping to strengthen the U.S. presence in the region by opening up ports to our visiting ships and encouraging closer military-to-military relations. In conjunction with increased access for U.S. forces, supporting the Philippine Government's much-needed military modernization efforts through EDA and $2 million in FMF will contribute to regional stability and thus advance U.S. interests. In addition, security assistance funds are requested for an improved communications system ($2 million) for Mongolian Troops monitoring borders with Russia and China.
IMET programs with many of the countries in Asia as well as with many of the South Pacific Island nations are important both to our mutual security and to ensuring civilian control over defense establishments. A request of $5.6 million is included to continue these vital IMET programs in FY 2001, including E-IMET for Indonesia ($400,000), and English language training in Laos and Vietnam ($50,000 each), that would be directly related to the accounting for MIAs.
The United States will need to maintain substantial levels of funding for Public Diplomacy programs in order to promote peace and security through International Visitor grants as well as seminars, speakers, and other forms of exchanges.
For the longer term, we are supporting efforts to build a multilateral regional security framework. Since its inception in 1994, the 22-member ASEAN Regional Forum (ARF), the sole official, region-wide security forum, has fostered dialogue, transparency, confidence building, and cooperation across a broad spectrum of comprehensive security issues. The FY 2001 request includes $250,000 in ESF funds to underwrite our contributions to the confidence building work of the ARF.
Economic Prosperity and Sustainable Development
U.S. goals are to accelerate the region's return to sustainable economic growth and to maintain momentum toward market opening. These efforts should increase U.S. trade and investment, create more high-paying jobs in America, strengthen U.S. companies, invigorate our economy, and reinforce U.S. leadership.
East Asia as a whole has turned the corner following the Asian Financial Crisis, although some individual countries are still in the economic doldrums. Even those countries well on the way to recovery must maintain momentum in reform efforts if they are not to backslide. We continue to work, both multilaterally and bilaterally, to help restore macroeconomic stability and long-term growth prospects by strengthening Asian financial systems, improving corporate governance, enhancing the transparency of regulatory and management systems, and engaging regional economies in efforts to improve the global financial system.
A sustainable growth strategy also calls for social investment. Well-targeted programs play a crucial role in cushioning the most vulnerable from economic dislocations and in restoring confidence. The United States is helping governments in the region to establish sound frameworks for long-term growth. USAID is administering a multi-year plan called Accelerating Economic Recovery in Asia (AERA), which will complement World Bank and Asian Development Bank programs. Members of the Asia Pacific Economic Cooperation (APEC) forum are exchanging information on innovative social policy practices. We are also working with the private sector, the real engine for economic growth.
Recovery of the Japanese economy is crucial to regional recovery, and we are urging the Japanese government to undertake the fiscal policies, financial sector reforms, and market opening steps necessary to get Japan's economy moving. With respect to Thailand, South Korea and Indonesia, the United States supports the programs of the International Monetary Fund (IMF) and multilateral banks to increase monitoring, improve good governance and transparency, and institutionalize necessary reforms. The $8 million in ESF requested for AERA will provide technical assistance for institutional reform, improved governance, and greater transparency.
Indonesia is attempting an extraordinary political transformation, while at the same time trying to recover from a deep economic recession. Medium and long term economic and financial reform are critical requirements for Indonesian stability. Now that Indonesia has a government with democratic legitimacy, it needs to make and implement the tough choices to build a viable sustained recovery. In FY 2001, increased ESF and DA funds are required to work on economic reform, focusing on the financial sector, bank and corporate debt, and also including efforts on competition, anti-corruption, secured transactions and increased certainty for investors. Funds will encourage small business development, particularly through support for microfinance lending, and will continue to assist NGOs and universities involved in increasing public participation in the economic reform process.
For sustained growth, markets must be built as well as opened. The United States is working bilaterally and through APEC to put in place policies and practices to attract the foreign investment needed to build infrastructure and efficient capital markets and to eliminate regulatory barriers.
East Timor ranks as one of the poorest areas in Southeast Asia. Anti-independence militia destroyed most of the country's basic infrastructure. To compound these problems, East Timor has no central bank, no currency of its own, no functioning civil service, and no official language. Sustainable development in East Timor depends, in large part, on how quickly and effectively the conditions for stable economic growth are established. The United States is working to help quickly restore and expand productive economic activity in the coffee sector, East Timor's only significant export.
To sustain trade and investment, we support U.S. business through embassy assistance and programs such as TDA, EXIM, OPIC and the US-Asia Environmental Partnership (US-AEP). We work to open markets by reducing tariff and non-tariff barriers and by eliminating investment restrictions.
We also support China's accession to the World Trade Organization (WTO) at the earliest possible moment, now that the U.S. and China have concluded bilateral negotiations on agreed terms for China's market opening. Accession to the WTO will increase the access of the Chinese people to ideas and information, encourage further economic reform, and advance the rule of law. Passage of legislation to grant China Permanent Normal Trade Relations (PNTR) is critical to our trade policy. With PNTR, American businesses, farmers, and laborers will be able to realize the full benefits of China's admission to the WTO.
Not all countries in the region have shared in the economic growth. Pockets of underdevelopment remain in Mongolia, the South Pacific island states, and the former Indochina countries of Cambodia, Laos and Vietnam. Mongolia is moving toward a market-based economy and will continue to require foreign assistance to bolster and institutionalize reforms. We will put a part of the $12 million in ESF for Mongolia and the $5 million in ESF for the Philippines into programs to promote privatization, transparency, and other market-oriented mechanisms. Many of the South Pacific island nations, where we have political and economic interests, are still struggling toward economic self-sufficiency. Our support for their broad-based growth efforts requires sustained resources. In accordance with the 1988 South Pacific Multilateral Fisheries Treaty, which ensures sustainable management of fisheries resources and ensures continued access for U.S. fishing vessels to Pacific Ocean fishing areas, the U.S. contributes $14 million in ESF to 16 governments of the Forum Fisheries Agency.
Democracy, Human and Worker Rights
Societies in the region are evolving politically at a swift pace, and many increasingly share our interest in human and worker rights and the spread of democracy and the rule of law. We have a three-pronged strategy, which includes use of the Bureau's regional democracy funds ($5 million in ESF) and the regional women's rights funds ($4 million in ESF) in addition to bilateral programs. Through the Bureau's regional women's rights funds, the United States will implement a coordinated effort to reduce violence against women and promote women's political participation as well as combat trafficking of women and children. Public Diplomacy and the Asia Foundation's programs will continue to be vital to the development of civil society, rule of law and democracy in the Asia Pacific region.
In places where democracy is being consolidated, we need to provide resources to support the process. We will devote a portion of the ESF for Indonesia, Mongolia, and Cambodia, to deepening and broadening democratic institutions and practices. In Indonesia, assistance in FY 2001 will build on that provided in FY 2000 to strengthen key government institutions and civil society organizations. In Mongolia, funds will be used to help establish the foundation for an effective rural civil society and improve the effectiveness of the parliament and the judiciary.
As a signatory to the Paris Accords, the United States has an abiding interest in supporting the conditions for enduring peace, sustainable economic development, and democratic institutions in Cambodia. We plan to use the $20 million in ESF to bolster NGOs -- the foundation for grassroots democracy -- to strengthen to National Assembly, to ensure fair communal elections, and to begin addressing long-term education and health needs so Cambodian democracy can thrive.
Global Issues
The East Asia and Pacific region enjoys some of the world's most environmentally significant assets, from the deserts of Mongolia to the estuaries of the Mekong River and from the rain forests of Borneo to the coral reefs of the South Pacific. It also suffers from air pollution, illegal logging, over-fishing, forest fires, and freshwater shortages that are compounded by overpopulation and poverty. No other region is as critical to securing our global environment agenda. For example, China's willingness to mitigate its greenhouse gas emissions is crucial to addressing climate change effectively. Japan, Australia and New Zealand are key allies on environmental issues, and active U.S. involvement in the Association of Southeast Asian Nations (ASEAN), APEC and the Pacific community advances our global environmental objectives. In FY 1999, we expanded on the previous year's initiative on forest fire and haze prevention by including projects in coastal resource management. We seek $6 million in ESF in FY 2001 for the East Asia and Pacific Environmental Initiative to continue to address the environmental challenges facing the region and to improve sustainable management practices in step with our national security, trade and other strategic goals.
The United States is a partner with Japan in "The Common Agenda," one of our most extensive programs for international cooperation on environment, health, and science and technology issues. Within APEC, ASEAN and the Pacific community we continue initiatives on cleaner production, clean oceans, and sustainable cities. We are cooperating in the fight against infectious diseases, focusing on basic public health and improving preparedness and response capabilities. The United States is working to eradicate polio through the Common Agenda with Japan and in direct efforts with China. HIV/AIDS, cholera, dengue fever, malaria, and multi-drug resistant tuberculosis are other diseases against which we are marshaling efforts. Within congressional constraints, we are advocating and supporting sustainable population policies and programs to increase adoption of voluntary and safe methods of family planning. There is a particularly important linkage to advancing education and equal opportunities for women and girls as a means of preventing trafficking within and from the region.
The humanitarian demining effort in the Asia Pacific region is a proven success with over two million square meters of land cleared and over 500,000 mines and pieces of unexploded ordnance destroyed in Cambodia alone. Similar success has been achieved in Laos. A new demining program has been established in Thailand.
Law Enforcement
To minimize the impact of international crime on the United States and its citizens, we seek increased actions by governments in the region to combat money laundering, other financial crimes, alien smuggling, drug trafficking, and corruption. We will work with others in the region to address more actively the issues of good governance and corruption. The U.S. is negotiating a series of mutual legal assistance treaties. We will work to support strategic counter-narcotics assistance to include improved cooperation in crop substitution, in countering money laundering, and in continued efforts to train and cooperate with regional anti-drug authorities. In this regard, we will support our International Law Enforcement Academy in Bangkok, which will train law enforcement and counter-narcotics officials from the region. To support bilateral U.S. efforts in this area, we are requesting $4.5 million for International Narcotics and Crime (INCLE) programs, mainly for Laos and Thailand. We are also increasing our engagement in bilateral and multilateral activities to expand knowledge of counter-terrorism resources and methods, stimulate information sharing, and enhance cooperation during terrorist incidents.
Conclusion
The programs that support our interests in the East Asia and Pacific region rely on resources provided mainly outside the State Department's International Affairs budget. For example, the Defense Department funds our military presence in the region, and Treasury, USTR, EXIM, OPIC, USDA, Commerce, Energy, and the Environmental Protection Agency (EPA) provide funding for trade, financial, environment and science activities in the region. By comparison, State and USAID have relatively small amounts to draw on to support our short- and long-term policy objectives. It is therefore important to make targeted increases in order not only to pursue ongoing programs, but also to respond to new challenges and opportunities in the region.
The United States finds itself in a relatively strong position in the Asia Pacific region. We have banked much good will over the past several decades. The countries of the region, with very few exceptions, welcome our military presence as essential to the region's stability. U.S. economic involvement is the key to regional growth, and democratic values and institutions are on the upswing. At the same time, we cannot take the region for granted. The United States needs to stay fully engaged, politically, economically, and militarily to achieve the President's vision of a Pacific Community. This requires resources in the form of a substantial and effective diplomatic presence and appropriate assistance programs.
All EAP posts need significant resources to keep up with hugely expanding consular workloads, to pay for communication technology, and to keep up with the increasing costs of doing business. Greater resources are still needed to bring our mission capabilities in China in line with the importance of that relationship. During FY 2000, we have responded to developments in Indonesia and East Timor by initiating steps to create a diplomatic presence in East Timor, reopen a consular post in Medan and increase our staffing in Jakarta. Maintaining two new posts and a larger mission in Jakarta will continue to be a drain on our operations elsewhere in the region during FY 2001 unless additional positions are established to offset those shifted to Indonesia.
The Asia Pacific region's importance to U.S. national interests continues to grow, but as our resources shrink, our ability to protect and advance American interests in this critical region is undercut.
CAMBODIA
($ in thousands)
Account
FY 1999 Actual
FY 2000 Estimate
FY 2001 Request
ESF
10,000
10,000
20,000
IMET
--
--
100
NADR
1,500
2,580
2,600
DA
800
--
--
CSD
3,600
3,550
--
National Interests:
As a signatory to the 1999 Paris Accords on Cambodia, the United States has an abiding interest in promoting the conditions for enduring peace, stability and democratic development in Cambodia. Nurturing democratic development in this impoverished nation, which is new to the democratic experience and lacking in human and institutional resources, is a complex and long-term process. The level and nature of our assistance program depend in part on the Cambodian government's progress towards genuine democracy and respect for human rights. Pursuant to current legislative restrictions, funds from the Foreign Operations Appropriations Act are not used to aid the central government of Cambodia.
Objectives and Justification:
Since 1997, assistance to Cambodia has been funneled exclusively through non-governmental (NGOs) and international organizations. Program areas include assistance to organizations engaged in democracy building and strengthening civil society, health care needs such as maternal/child health and HIV/AIDS prevention, humanitarian de-mining and aid to mine survivors, and micro-enterprise loans. Due to budget constraints, ESF assistance in FY 2000 was prioritized in favor of the democracy/human rights and health care sectors.
In FY 2001, U.S. support will aim to sustain our engagement with domestic NGOs working specifically in the areas of human rights and creation/protection of democratic institutions. Organizations receiving U.S. assistance address such issues as domestic violence, legal education, labor rights, government transparency, rights of women in society, rule of law training, corruption and public accountability, an independent press, and legal assistance to the poor. NGOs will also engage all levels of government and society to help plan, monitor and implement Cambodia's first-ever local elections in early 2001.
Cambodia's high birth rate is enough to double the population in 25 years. In FY 2001, funds will also be used for programs to reduce Cambodia's birth rate and high infant and maternal mortality rates, and to reduce the high rate of death from preventable diseases, including HIV/AIDS, by spreading health information and education. The Reproductive and Child Health program provides services to over 120,000 women and children each year, and has doubled contraceptive use in the last three years.
Cambodia's economy has been crippled by almost two decades of war and a failed ten-year experiment in socialist central planning. U.S. assistance in this sector would focus on small-scale loans aimed at developing the country's private sector. Micro-enterprise programs, supporting credit for the rural poor (80 percent of Cambodians), target women in particular.
International assistance is vital to Cambodian efforts to remove the estimated five to eight million anti-personnel mines in the country. As a result of land mines, Cambodia has a higher proportion of amputees in its population than any other country, and $2 million in ESF funds will aid war victims. Using NADR funds, de-mining training and equipment for the armed forces have been a core element of U.S. humanitarian assistance.
Finally, $100,000 in IMET funds will be used for human rights and rule of law training to help professionalize the Royal Cambodian Armed Forces so it will either withdraw from politics or at least become neutral participants. Funds will also be used to provide training to officers which would help them contribute to regional stability and play an effective role in transnational law enforcement issues (narcotics, human trafficking, and protection of land and natural resources) that impact on governance and the rule of law. Cambodia will be eligible in FY 2001 to receive grant Excess Defense Articles (EDA) under Section 516 of the Foreign Assistance Act. EDA will support humanitarian assistance efforts to include de-mining. As a matter of policy, resumption of IMET and provision of EDA are subject to the lifting of restrictions against Cambodia.
PAYMENT FOR CHINESE EMBASSY BOMBING
($ in thousands)
Account
FY 1999 Actual
FY 2000 Estimate
FY 2001 Request
ESF
--
--
28,000
Justification:
The tragic and mistaken bombing of the Chinese embassy in Belgrade was an exceptional circumstance. The embassy of another country was mistakenly targeted and then completely destroyed, resulting in the deaths and injuries of Chinese nationals and significant property damage.
Negotiations between the United States and China were held to address riot damage to our diplomatic and consular facilities in China, as well as the bomb damage to the Chinese Embassy in Belgrade. The eventual result of our negotiations was an agreement to seek funding from Congress of $28 million for property damages and other expenses incurred by the Chinese government arising from the loss of its embassy, and a separate agreement whereby China will, in conjunction with our payment to them, provide us $2.87 million for our damage.
This will be a one-time payment, resolving any and all related claims by the Chinese government for property damage and associated costs arising from the bombing. The $28 million covers the cost of rebuilding the Chinese embassy, temporary lodging and workspace, items destroyed in the building such as furnishings, equipment, and cultural objects, as well as the costs associated with sending an emergency mission to tend to its dead and injured nationals. Similarly, the $2.87 million payment from the Chinese Government would fully cover all U.S. claims for damage sustained to U.S. properties in the aftermath of the Belgrade incident. This figure accurately reflects the costs associated with replacement and repair of damaged U.S. diplomatic property.
EAST TIMOR
($ in thousands)
Account
FY 1999 Actual
FY 2000 Estimate
FY 2001 Request
ESF
6,500 [note 1]
25,000
10,000
PKO
--
8,500
18,000
National Interests:
The United States has important political, security and humanitarian interests in supporting East Timor's transition to independence. For democracy, rule of law, and stability to permanently take hold in East Timor, the United States must continue to support the development of stable political and economic infrastructure in East Timor. In August of 1999, the East Timorese people elected through an UN-administered vote to separate from Indonesia, an event that will eventually lead to the emergence of a new nation in Southeast Asia. The UN Transitional Administration in East Timor (UNTAET), working closely with the East Timorese, is overseeing the territory's transition to full independence, a process that will take several years. The United States will continue to help the East Timorese during this transition period with assistance aimed at humanitarian relief, reconstruction, capacity-building, and economic recovery. Our goal is the emergence of a viable, democratic East Timor, which is integrated politically and economically into regional and global structures and markets.
Objectives and Justification:
In January 1999, Indonesia unexpectedly reversed its longstanding policy and proposed that East Timor be allowed to vote on an expanded autonomy package. In May 1999, as part of UN-sponsored negotiations, Indonesia and Portugal agreed that a vote on autonomy would be held under UN auspices. In June the UN Security Council established the United Nations Mission in East Timor (UNAMET) to supervise the vote and oversee the implementation of its results. In August of 1999, the East Timorese voted overwhelmingly to reject autonomy and separate from Indonesia. Military-backed, pro-integration militias responded to this outcome with a rampage of violence, abuses, and destruction that resulted in hundreds dead, and tens of thousands displaced. Unwilling or unable to halt the violence, the Indonesian government accepted an international offer to restore order, and in September the UN Security Council authorized the deployment of a multinational coalition called the International Force in East Timor (INTERFET). In October 1999, the Indonesian legislature recognized the result of the East Timor vote, and the UN Security Council established the United Nations Transitional Administration in East Timor (UNTAET), with a mandate to administer the territory, establish the capacity for self-government, sustainable development, and civil society, and provide security.
The objective of U.S. assistance for East Timor is to facilitate the emergence of that nation as a viable democracy. The United States has assumed a substantial financial commitment in support of multilateral action so far throughout this process. In FY 1999, we contributed $9 million to help fund UNAMET's operations and provided 30 U.S. civilian police to help maintain order during the referendum period. To assist developing country participants in INTERFET, President Clinton authorized the drawdown of up to $55 million in U.S. defense articles and services. Since 1999, State and USAID have contributed more than $50 million in humanitarian assistance to East and West Timor. In addition, in FY 2000, through the Contributions for International Peacekeeping Activities (CIPA) account, we expect to pay an estimated $197 million in UN peacekeeping bills related to UNAMET and UNTAET.
To respond to urgent requirements arising from the immediate post-conflict situation in East Timor, in FY 2000, we will also provide approximately $35 million for programs that can rapidly support the development of East Timorese civil society, aid economic recovery, build the capacity of new democratic and economic institutions, and support the maintenance of a secure environment. FY 2000 ESF funds will allow USAID to expand its existing coffee farming initiative and the Office of Transition Initiatives (OTI) to implement new community-led development projects to build East Timor's capacity for self-government. By contributing to the UNTAET Trust Fund, the United States will help to ensure that basic services continue in East Timor and that the East Timorese develop the skills to provide them. The U.S. contribution to the World Bank Trust Fund will strengthen international donor coordination and aid multilateral efforts to create a self-sustaining economy in East Timor over the long term. ESF funds will also focus on human rights, forensics, and judicial sector capacity development. FY 2000 PKO funds will allow the United States to continue to provide civilian police as part of the UN mission and to begin to assist in the development of a local police force capacity.
In FY 2001, we plan to continue to assist the East Timorese with their transition to independence. Our request for $10 million in ESF and $18 in PKO funds will allow us to continue to fund a substantial level of development activities, maintain an increased U.S. civilian police presence, help to recruit, train, advise and equip a new East Timorese police force capable of functioning once the UN Administration ends, and contribute to ongoing efforts to establish critical judicial functions. By FY 2001, other donor support and multilateral assistance is also expected to be in place to help meet these and other critical requirements for East Timor. The United States will also continue to provide humanitarian assistance as required, as well as support for UNTAET.
FIJI
($ in thousands)
Account
FY 1999 Actual
FY 2000 Estimate
FY 2001 Request
IMET
15
150
160
National Interests:
The United States has economic and security interests in Fiji. U.S. trade and investment help promote broad-based growth and sustainable economic development. The United States has relied on Fiji as an important partner in peacekeeping operations throughout the world. Until Australia and New Zealand assumed a major role in the International Force in East Timor (INTERFET), Fiji held a twenty-year record as the leading contributor of peacekeeping forces in the entire Pacific region. U.S. Air Force aircraft have used Fiji as a base for space shuttle and satellite testing support flights since 1990.
Objectives and Justification:
Democracy in Fiji was ended by a military coup in 1987, caused by the refusal of ethnic Fijians to accept a government perceived as dominated by Fijians of Indian descent. In May 1999, Fiji held free and fair elections under a new, multi-ethnic constitution, which resulted in the restoration of Fiji's eligibility for security assistance funds.
Since 1978, over a third of Fiji's military forces have participated in peacekeeping operations in Lebanon and the Sinai -- alongside U.S. troops. They have also served as peacekeepers in Zimbabwe/Rhodesia, Afghanistan-Pakistan, Somalia, and Rwanda. Starting in 1999 Fiji joined regional nations in sending peace monitors to oversee the truce in the Solomon Islands. Fiji contributed 190 troops to INTERFET in East Timor starting in January 2000.
IMET funding in FY 2001 will continue to provide professional education and training for Fiji's Defense Force with emphasis on respect for human rights, civilian control over the military and military justice. In particular, as in the past, IMET funds will be used to provide Fiji's troops with instruction in technical military English, professional military education, and noncommissioned officer training. Fiji will also be eligible in FY 2001 to receive grant Excess Defense Articles (EDA) under Section 516 of the Foreign Assistance Act. EDA will further enhance Fiji's capability to contribute to international peacekeeping efforts.
INDONESIA
($ in thousands)
Account
FY 1999 Actual
FY 2000 Estimate
FY 2001 Request
ESF
5,300
23,000
50,000
DA
38,606
53,050
61,075
CSD
13,450
18,950
18,925
IMET
486
--
400
National Interests:
The United States has critical security, political, and economic interests in Indonesia. Indonesia's size and location, 200 million plus population (fourth largest in the world), and natural resources (notably oil and gas) give it broad strategic value. A stable and prosperous Indonesia is integral to regional stability in Southeast Asia.
We have vital strategic and economic interests in maintaining access to the international sea-lanes and straits that pass through Indonesian waters. The largest member of the Association of Southeast Asian Nations (ASEAN) and a founder of the ASEAN regional forum on security issues, Indonesia is active and generally supportive of U.S. diplomatic initiatives, and has played an important role in helping manage regional conflicts. Indonesia's regional and global influence - manifested through its leadership roles in the United Nations, the Non-Aligned Movement, the Organization of the Islamic Conference, and the G-77 - is considerable, and a force for moderation.
Indonesia is in the midst of a wrenching transition from the authoritarianism of the Soeharto era to reconstruction as a democratic society, the outcome of which is still uncertain. The achievement represented by last year's democratic elections, the first in a generation, is inspiring and at the same time ephemeral. Popular expectations are enormous, and the new government's institutional ability to meet them has been undermined by decades of neglect and corruption. Regional tensions are high. The government remains vulnerable to a variety of destabilizing risks from within and without. The economic situation can best be described as one of fragile stability.
That it is in the U.S. interest to see the Indonesian government succeed in this transition is self-evident given the seriously detrimental effects of all the conceivable alternatives. Our budget request reflects this reality, and we are not alone in this undertaking. Our principal partners - Japan, Australia, Germany, the United Kingdom, Canada and the EU - are all reinforcing their assistance programs, as are the international financial institutions.
Objectives and Justification:
Indonesia is one of four key countries the Secretary has identified as undergoing a critical transition to democracy and in need of additional resources. In FY 2001, ESF and Development Assistance (DA), including funds from USAID's Accelerating Economic Recovery in Asia (AERA) initiative, will be used to help the new Indonesian government and local NGOs create or strengthen institutions critical to democratic and economic reform.
Measurable progress in many areas relating to democratic governance is already apparent. Indonesia's civil society is blossoming. The previous government established a political reform timetable, which resulted in new legislative elections, the selection of a new president and vice-president, and a coalition cabinet that includes a number of reformers. The new government has indicated its willingness to take on complex economic, political, social and natural resource issues. The Parliament is working on reform legislation aimed at a more democratic electoral framework and political laws. However, a number of crises continue to afflict this nascent democracy, including social unrest, ethnic, class and religious conflict; separatist movements; corruption; social welfare needs; natural resources degradation; and uncertain protection of human and property rights.
FY 2000 and FY 2001 ESF and DA resources will permit the United States to support reform within the government and to strengthen the key processes and institutions required for good governance. For example, USAID programs will work with national and local parliaments to improve their capacity for research and analysis and to draft legislative and constituent communications. They will also provide training for political parties and for newly elected parliamentarians to enable them to be responsible, accountable, transparent, and active participants in the governance of the country. Programs will work with government organizations and independent regulatory agencies on improved governance; support media and advocacy groups; and help promote human rights, ethnic and religious tolerance, and conflict resolution and reconciliation. Funds will provide for technical assistance in judicial sector reform, including assistance in developing professional and competent legal organizations.
ESF and DA funds will also be used to back the IMF economic stabilization and structural reform program, which provides a framework for the country's return to durable broad-based economic growth. USAID, supported by the Department of Treasury, will continue work on economic reform, focusing on financial sector, bank and corporate debt, as well as efforts to improve policies on competition, anti-corruption, secured transactions and increased certainty for investors. It will also encourage small business development, particularly through support for microfinance lending, and will continue to assist NGOs and universities involved in increasing public participation in the economic reform process.
Through DA and Child Survival (CSD) funds, USAID's health program will continue a focus on the most vulnerable, protecting poor women and children by improving access to essential primary health services, supporting monitoring systems to improve efficiency of resource allocation, and encouraging better health information and nutrition.
The Indonesia IMET program is aimed at improving the Indonesian military's professionalism and discipline. It also heightens the Indonesian military's awareness of principles of good civil-military relations and international human rights standards and could reinforce the military's commitment to reform. In addition, this assistance recognizes Indonesia's key role on regional security issues, and helps to ensure U.S. access to Indonesia's airspace and strategic sea-lanes. The IMET program was suspended in 1999 in the aftermath of military human rights abuses in East Timor. By FY 2001, we hope to achieve resumption of a modest Expanded IMET program.
LAOS
($ in thousands)
Account
FY 1999 Actual
FY 2000 Estimate
FY 2001 Request
INCLE
3,700
4,000
4,200
NADR
1,800
1,486
1,500
IMET
--
--
50
DA
2,300
--
--
National Interests:
The United States has four primary interests in Laos, one of the ten poorest countries in the world: ensure the fullest possible POW/MIA accounting; further counter-narcotics efforts in the Golden Triangle; encourage the transition of the Lao economy from a command economy to an open, market-oriented system; and promote human rights.
U.S. assistance to Laos is consistent with several international affairs strategic goals, including combating illegal drug trade, facilitating humanitarian assistance, and promoting regional stability.
Objectives and Justification:
Laos has the distinction of being the most heavily bombed nation, on a per capita basis, in the history of warfare. Scores of Lao are killed and maimed annually by unexploded ordinance. In FY 2001, NADR demining funds will continue to provide training and equipment to move the Lao program of unexploded ordinance removal toward achieving eventual self-sufficiency. Though significantly trailing Burma and Afghanistan, Laos is the world's third largest producer of illicit opium. INCLE funds focus on helping Laos achieve the elimination of opium poppy cultivation and the suppression of illicit trafficking of narcotics and precursor chemicals.
The U.S. government is seeking to increase cooperation on POW/MIA matters and demining with Laos and to encourage Laos' interaction within the Association of South East Asian Nations (ASEAN) and the ASEAN Regional Forum. To facilitate this, as well as to promote our POW/MIA accountability efforts, IMET funds are being sought to expand the small pool of English-speaking Lao military officials. Laos will be eligible in FY01 to receive grant Excess Defense Articles (EDA) under Section 516 of the Foreign Assistance Act. EDA items, including communications equipment and transportation assets, will support U.S. counter-narcotics goals, the fullest possible accounting of missing personnel from the war in Southeast Asia, and demining.
MALAYSIA
($ in thousands)
Account
FY 1999 Actual
FY 2000 Estimate
FY 2001 Request
IMET
713
700
700
National Interests:
The United States has important economic, political, and security interests in Malaysia. Malaysia is our 12th largest trading partner and continues to be an important market for U.S. goods and services. We also have a strong interest in supporting the strengthening of democratic institutions in Malaysia. Malaysia is a key member of the Association of Southeast Asian Nations (ASEAN), the Organization of Islamic Conference (OIC), and currently holds a rotating seat on the UN Security Council. Malaysia borders one of the world's most important maritime waterways, and routinely grants the U.S. military transit rights over Malaysian territory and access to Malaysian ports and airfields.
Objectives and Justification:
IMET funds for Malaysia have served U.S. interests such as the formation of good working relations with the Malaysian military. The Malaysian military shares U.S. fundamental values about the military's role in society, and military-military/civilian-military cooperation is broad, open, and active. Participation in IMET is highly valued by the Malaysian military, and IMET graduates continue to advance steadily. Malaysia's current Chief of Army is a 1986 graduate of the U.S. Army Command and General Staff College in Fort Leavenworth. Exposure to U.S. ideals promotes respect for human rights throughout a key branch of Malaysia's government; the Malaysian military has not been involved in systematic violations of human rights.
IMET programs also enhance Malaysia's ability to participate in international peacekeeping activities. Malaysia has sent peacekeeping troops to Bosnia, military liaison officers to Kosovo, and additional military personnel to serve with the UN International Force in East Timor.
In FY 2001, IMET funds will help continue to strengthen our military-to-military ties, and to familiarize the Malaysian military with U.S. doctrine, equipment, and management techniques. They will also reinforce the Malaysian military's commitment to human rights and good civil-military relations, and help expand U.S. access to and cooperation with Malaysian military leaders. Although the global financial crisis has slowed Malaysia's military procurement plans, we expect Malaysia to look to the United States for future purchases as economic recovery takes place.
Malaysia will be eligible in FY 2001 to receive Excess Defense Articles (EDA) under Section 516 of the Foreign Assistance Act. EDA will support the U.S objectives of maintaining a stable and cooperative military relationship and improving Malaysia's peacekeeping capabilities, including the provision of communications systems, training aids and equipment.
MONGOLIA
($ in thousands)
Account
FY 1999 Actual
FY 2000 Estimate
FY 2001 Request
ESF
--
6,000
12,000
FMF
--
--
2,000
IMET
429
500
525
FSA
10,000
6,000
--
National Interests:
As the first communist country in Asia to simultaneously reform its economy and political system, Mongolia provides an important example to all of Asia. The United States has a clear national interest in supporting Mongolia's transformation into a secure, democratic and stable country that can positively contribute to the security and prosperity of the Asia-Pacific region. Situated strategically between China and Russia, Mongolia needs U.S. assistance to foster its rapid transformation into a market-oriented democratic society.
In FY 2001, the Mongolian government faces the challenge of following through on economic and structural reforms that will determine its path of development over the next decade. It is in the U.S. interest to provide support for projects that will enhance Mongolia's ability to act responsibly and independently in the regional economy and participate in regional fora that address security, narcotics, transnational crime, environmental protection and other issues of importance to the U.S. For the long term, the U.S. goal to help Mongolia become a nation that is not donor-dependent can only be reached by a commitment to provide assistance and counsel during this critical period.
Objectives and Justification:
U.S. assistance to Mongolia helps to establish a market-oriented and democratic society by accelerating and broadening environmentally sound private sector growth and consolidating Mongolia's democratic transition. Demonstrating its commitment to the development of democracy and a market economy, the government continues to pursue aggressive reforms. Thus far reform policies have focused on sound macroeconomic management of the economy and key issues in the banking, power, and pension sectors.
U.S. assistance contributes to sustainable economic growth through programs targeted at market and agricultural development, human capacity development and democratic institution building. Funds also help overcome obstacles to growth, including undeveloped transportation and energy supply systems, inefficient public and state-run institutions, inadequate judicial and law enforcement services, and inexperienced civil society organizations.
For FY 2001, $8.7 million in ESF will fund programs to (1) transfer productive assets to the private sector; (2) increase the efficiency of financial markets; (3) improve the business environment; and (4) improve the management of natural resources. The successful implementation of these programs will lead to longer-term banking sector, tax policy, administration, regulatory and debt management reforms. Another $2 million would be dedicated to help to reform the judiciary. The remaining $1.3 million would be used in population, health and human capacity development programs.
The U.S. and the Mongolian Ministry of Defense have identified communications resources as the most critical infrastructure requirement in the border areas. FY 2001 FMF funding will provide basic communications equipment to the border troops allowing the border posts to communicate with their regiments and allow the Mongolians to respond to border incursions and natural disasters in a timely manner. This project will greatly reduce the number of cross-border violations as well as support regional stability and rule of law within the region. It is imperative that Mongolia be able to protect and maintain its own borders - Mongolia's border with Russia is over 3,500 kilometers long and its border with China is over 4,500 kilometers.
The promotion of civilian control of the military, military justice, respect for international human rights standards and preparation for participation in peace-keeping operations are key objectives for continuing IMET training for Mongolia's armed forces in FY 2001. Mongolia is eligible to receive Excess Defense Articles (EDA) under Section 516 of the Foreign Assistance Act. EDA would be used toward the U.S. objectives of supporting Mongolia's self-sufficiency, disaster management, humanitarian assistance/relief, and to promote closer ties to the U.S. military.
PAPUA NEW GUINEA
($ in thousands)
Account
FY 1999 Actual
FY 2000 Estimate
FY 2001 Request
IMET
156
175
180
National Interests:
U.S. national interests in Papua New Guinea (PNG) derive from our overarching interest in regional stability and from the country's status as home to one of the world's greatest remaining tropical rain forests and biodiversity reservoirs. PNG is the largest and most populous island nation in the South Pacific and neighbor to the troubled Indonesian province of Irian Jaya. U.S. goals include strengthening democratic institutions, assisting with development of disaster relief capabilities, supporting peaceful transition from civil strife to rule of law in Bougainville island province, supporting the nation's pursuit of a free enterprise tradition, and fostering stewardship of diverse natural resources. The benefits of a stable, lawful and prosperous PNG include reduced prospects of human rights violations, environmental degradation, and international organized crime.
Objectives and Justification:
Secessionist insurrection isolated the island of Bougainville for more than ten years. Today, the former belligerents are working to establish an autonomous provincial government of reconciliation under unarmed regional peace monitors and a small UN political office. The PNG armed forces retain a small presence on Bougainville, and their cooperation will be necessary for any lasting settlement on the island. FY 2001 International Military Education and Training (IMET) programs will help continue to build a more professional and better-disciplined PNG Defense Force, improve the force's capability to monitor and detect illegal fishing and to apprehend persons and vessels engaged in such fishing. The IMET program provides professional education and training to the PNG Defense Force with emphasis on human rights, civilian control over the military and military justice. PNG is eligible to receive Excess Defense Articles (EDA) under Section 516 of the Foreign Assistance Act. EDA will support U.S. objectives of more professional and effective forces and will enhance the PNG Defense Force's capability to remove and neutralize unexploded ordnance on Bougainville and at World War II sites throughout the country. Transportation, demining, training aids and patrol craft are top priorities.
PHILIPPINES
($ in thousands)
Account
FY 1999 Actual
FY 2000 Estimate
FY 2001 Request
ESF
--
--
5,000
FMF
1,000
1,000
2,000
DA
22,750
22,500
30,100
CSD
4,400
7,200
9,900
IMET
1,348
1,400
1,400
National Interests:
The United States has important security, commercial and political interests in the Philippines, a treaty ally that straddles important air and sea-lanes. As a nation-state committed to democratic political principles and confident in its exercise of regional leadership, a stable Philippines is an important force for stability in Southeast Asia. The Philippines is committed to close relations with the United States in support of regional peace and security in Southeast Asia. It seeks to promote regional economic and political cooperation through the Association of Southeast Asian Nations (ASEAN), the ASEAN Regional Forum and APEC. The Philippines remains an attractive and growing market for U.S. investments and exports. The government continues to make structural reforms that are based on market principles and designed to integrate it into the world economy, as well as to improve the living standards of its people and provide them with a social safety net.
Objectives and Justification:
The U.S.-Philippines partnership for democracy and development is a shared commitment addressing mutual economic, social and global issues. For FY 2001, Development Assistance (DA) programs in the Philippines will support wider participation in public policy and foster the continued development of civil society. Broader efforts to use development aid to foster economic stability have helped set the stage for another peaceful transition of power with universal acceptance of the results of nation-wide elections. Child Survival (CSD) funds will support child health and family planning, reducing the fertility rate, improving maternal and child care services, and reducing infant mortality significantly. CSD programs to counter the spread of AIDs have also been notably effective, as have broader efforts to improve the health of vulnerable segments of the population.
Economic Support Fund (ESF) resources will provide the expertise to improve the economic policy environment for U.S. companies to export to the Philippines. Policy reforms encouraged by the United States have contributed to increased trade and investment and to the further opening of the telecommunications and energy sectors to U.S. companies. DA funds also work to foster broad-based economic growth by improving the policies, the social safety net, and the environment.
International Military Education and Training (IMET) funds help contribute to overall regional stability. Specifically, in FY 2001, funds will be aimed at positively influencing the Philippine military's professionalism and discipline. In past years, IMET training also helped further entrench civilian control over the military, contributing to a definite decline in the number of reported incidents of human rights abuses. The steady advancement of IMET graduates helps ensure the continued understanding and cooperation of the Government of the Philippines on U.S. views toward regional issues. The IMET graduates who populate the top ranks of the Armed Forces of the Philippines contributed to building the close professional military-to-military relations which exist between the US military and the Armed Forces of the Philippines.
Now that the Visiting Forces Agreement (VFA) entered into force, the U.S. military is actively engaged in ship visits and joint training exercises with the Armed Forces of the Philippines. These cooperative bilateral military activities constitute important steps toward normalizing our military-to-military ties and increasing inter-operability and standardization with the AFP to defend the national borders against external aggression, to counter the Communist and Muslim separatist insurgencies, and to participate in international and regional peacekeeping operations. In FY 2001, FMF funds would be used to assist the Philippine government in acquiring modern military equipment, such as transport trucks to move their peacekeeping forces. The Philippines is eligible to receive Excess Defense Articles (EDA) under Section 516 of the Foreign Assistance Act. EDA will also support U.S. objectives of increased inter-operability with, and standardization within the AFP as well as enhancing their ability to participate in international and regional peacekeeping operations.
SAMOA
($ in thousands)
Account
FY 1999 Actual
FY 2000 Estimate
FY 2001 Request
IMET
105
100
120
National Interests:
U.S. national interests in Samoa are related to maintaining regional stability. The United States strives to maintain close ties with Samoa, a consistent supporter of U.S. positions internationally. Samoa is also a close neighbor of the U.S. territory of American Samoa, with which it has long-standing family and cultural ties. Other interests include encouraging broad-based economic growth, supporting improved capacity to protect the island's environment and natural resources, and educating the public on health issues.
Objectives and Justification:
The most important use of International Military Education and Training (IMET) is to support the U.S. objective of helping Samoa develop an effective maritime law enforcement and surveillance capability. Training in basic coastal surveillance and seaborne law enforcement skills is carried out in accordance with U.S. leadership doctrines, emphasizing civilian control. DOD/Coast Guard resources contribute to broad-based economic growth in Samoa by assisting Samoa's maritime police patrol to strengthen enforcement of their maritime Exclusive Economic Zone (EEZ), and to improve safety in Samoa's fishing fleet.
IMET military training programs for Samoan health professionals aim to help the Samoan Department of Health better manage scarce resources, and improve the overall quality of health care in Samoa. Samoa is eligible to receive Excess Defense Articles (EDA) under Section 516 of the Foreign Assistance Act. EDA will assist Samoa in developing an effective maritime law enforcement capability and enhance inter-operability with U.S. DOD and Coast Guard forces.
SOLOMON ISLANDS
($ in thousands)
Account
FY 1999 Actual
FY 2000 Estimate
FY 2001 Request
IMET
157
150
150
National Interests:
In the interests of regional security, economic prosperity and reduced threats of conflict or environmental degradation, U.S. assistance to the Solomon Islands focuses on strengthening the nation's capabilities to secure its maritime borders, encouraging its democratic institutions and preserving its biodiversity.
Objectives and Justification:
IMET training helps the Solomon Islands to develop an effective maritime reconnaissance force. Training in basic coastal surveillance and seaborne law enforcement skills help guarantee that the 1997 Solomons-Papua New Guinea border agreement continues to be honored. It also increases the country's ability to maintain control of its own fishery resources. The Solomons are eligible to receive Excess Defense Articles (EDA) under Section 516 of the Foreign Assistance Act. EDA will support the U.S. objectives of the Solomons' achieving an effective maritime law enforcement and surveillance capability, as well as the capability to remove unexploded ordnance from World War II. Transportation, demining, training aids and patrol craft are priority areas for assistance.
THAILAND
($ in thousands)
Account
FY 1999 Actual
FY 2000 Estimate
FY 2001 Request
IMET
1,703
1,600
1,560
NADR
1,050
1,220
1,300
INCLE
2,700
3,000
3,000
National Interests:
One of five treaty allies in Asia and a major trading partner, Thailand hosts our largest joint military exercise in Asia (Cobra Gold), and provides crucial access to Thai facilities when needed. In the aftermath of the global financial crisis, the U.S. views Thailand as a model of economic reform and democratic development, as well as a regional leader in promoting stability. Thirty years of effective counter-narcotics cooperation has led to the establishment in Bangkok of our second International Law Enforcement Academy (ILEA).
Objectives and Justification:
Thailand plays a significant role in fostering regional stability in Southeast Asia. Continuing joint exercises and International Military Education and Training (IMET) programs help develop and maintain a Thai military committed to respecting and fostering democratic principles and capable of participating in international peacekeeping operations. Thailand will be eligible in FY2001 to receive grant Excess Defense Articles (EDA) under Section 516 of the Foreign Assistance Act. EDA would support the U.S. objectives of increasing Thailand's drug enforcement capability, improving interoperability with U.S. forces, and promoting a willingness to continue to contribute to international peacekeeping activities. In addition to major military items already in the Thai inventory, naval craft and transportation items are very useful toward these ends.
Our counter-narcotics and law enforcement assistance programs, funded through the INCLE account, have both a bilateral and multilateral component, with the U.S. budget for each approximately $3 million per year. Our bilateral narcotics assistance expands Thailand's institutional capability to conduct sophisticated counter-narcotics operations and cooperate effectively with the DEA, assists opium eradication efforts, and facilitates successful crop substitution and demand reduction programs. INCLE crime funds help run the International Law Enforcement Academy (ILEA) in Bangkok, a cooperative undertaking with Thailand, which opened in March 1999. The academy offers high-quality counter-narcotics and anti-crime training to participants from ten countries in the region, including China and Hong Kong, to help the law enforcement personnel involved build the contacts necessary to fight transboundary crimes and global criminal syndicates.
Thailand's humanitarian demining program, funded through the NADR account, was launched in Thailand in FY 1999 with the establishment of the Thai Demining Action Center. NADR funds provided equipment, while the Defense Department's Overseas Humanitarian Disaster and Civic Aid funds provided the initial trainers. FY 2001 funds will complete the planned three-year cycle to fully train the Thai demining trainers and equip six demining platoons with trucks, computers, and demining gear, building the capacity Thailand needs to address the landmine problem along its borders with Cambodia and Burma.
TONGA
($ in thousands)
Account
FY 1999 Actual
FY 2000 Estimate
FY 2001 Request
IMET
99
100
100
National Interests:
The Kingdom of Tonga, a highly traditional society where the King and nobles dominate political life, interacts with the U.S. mainly in such organizations as the South Pacific Commission, the Forum Fisheries Agency, and the South Pacific Regional Environment Program. U.S. interests in Tonga include encouraging democratic institutions, and assisting in environmental protection efforts. International Military Education and Training (IMET) is an important vehicle for pursuing U.S. interests.
Objectives and Justification:
Tonga joined other regional nations in 1999 (New Zealand, Australia, Vanuatu, Fiji) in providing unarmed peace monitors once a truce was achieved in Papua New Guinea's Bougainville Island province. IMET provides professional education and training for Tonga's Defense Force with emphasis on respect for human rights, civilian control over the military and military justice. IMET also helps to support Tonga's ability to contribute to regional peacekeeping endeavors, and contributes to Tonga's development of an effective maritime law and surveillance capability. Tonga is eligible to receive Excess Defense Articles (EDA) under Section 516 of the Foreign Assistance Act. EDA will also support Tonga's ability to contribute to regional peacekeeping endeavors and their development of an effective maritime law enforcement capability.
VANUATU
($ in thousands)
Account
FY 1999 Actual
FY 2000 Estimate
FY 2001 Request
IMET
87
100
100
National Interests:
U.S. national interests in Vanuatu center on strengthening the nation's democratic institutions. Other interests include building Vanuatu's capacity to secure its maritime borders, and encouraging programs that protect the island's environment and fragile natural resources.
Objectives and Justification:
The small Vanuatu Mobile Force must patrol a vast area of ocean. U.S. Coast Guard training in maritime law-enforcement supplements Australian and New Zealand programs and upgrades Vanuatu force capabilities. IMET training also helps improve force discipline and enhances its effectiveness in regional peacekeeping and disaster relief efforts. Vanuatu is eligible to receive Excess Defense Articles (EDA) under Section 516 of the Foreign Assistance Act. Provision of transportation, training aids, and patrol craft will support the U.S. objective of improving VMF operational effectiveness in regional peacekeeping and disaster relief efforts.
VIETNAM
($ in thousands)
Account
FY 1999 Actual
FY 2000 Estimate
FY 2001 Request
IMET
--
--
50
DA
1,500
1,250
2,000
CSD
1,500
1,500
--
NADR
1,096
1,000
800
National Interests:
The United States has a national security interest in promoting a stable, globally integrated Vietnam with increasing economic prosperity and U.S. trade relations. The United States also has an interest in helping disadvantaged groups such as those at high risk of contracting HIV/AIDs, the disabled, displaced children, victims of natural disasters and to remove land mines.
Objectives and Justification:
The United States seeks to enhance Vietnam's ability to be a constructive regional player by encouraging Hanoi's active participation in ASEAN and ARF and other strategic dialogues. We also seek to diminish mistrust through incremental expansion of military to military contacts.
The FY 2001 request includes funds for E-IMET courses to build English language capability in the next generation of Vietnam's leaders, on whom we will be counting for continued cooperation in achieving the fullest possible accounting of our missing from the Vietnam War. The Vietnamese military has also been increasingly interested in attending conferences and confidence building meetings hosted by Headquarters, Pacific Command (PACOM). However, it has been unable to send participants to these meetings due to a lack of officers with English language proficiency. These difficulties also hamper Vietnam from taking on and being effective in leadership positions in ASEAN and ARF. Enhancing the English language capability of Vietnamese officials enables them to make effective use of U.S. archival materials in our joint efforts and in Vietnam's unilateral activities.
Development Assistance (DA) funds will enable technical experts to work with Vietnam in building understanding among the Vietnamese in the public and private sectors on the necessary steps to liberalize the trade and investment framework and to assist in implementing the market reforms required under such framework. These funds will also assist Vietnam in implementing the reforms required under the U.S.-Vietnam bilateral trade agreement after it is signed.
While assisting Vietnam in accelerating economic liberalization and growth, DA and CSD funds will also provide assistance to selected vulnerable groups including victims of injuries from the war or from land mines, victims of annual floods, orphans and displaced children, and those at high risk of contacting HIV/AIDS. These funds will continue to help improve opportunities for war victims and children at risk. For the war victims and victims of mines left by war, activities will focus on providing orthotic and prosthetic devices as well as rehabilitation for those in need of artificial limbs. These funds will continue to promote barrier-free access in building construction and increase the participation of the disabled in the decision-making process. There will be more emphasis on children with disabilities and in developing local capacity to include them in educational programs. Future programs will place more emphasis in sustainability by building local capacities to support these disabled groups.
Land mines pose a constant danger and keep agricultural land from production. NADR funds will be used to assist Vietnam in removing land mines, saving lives of innocent individuals and returning agricultural lands to productivity.
ACCELERATING ECONOMIC RECOVERY IN ASIA (AERA)
($ in thousands)
Account
FY 1999 Actual
FY 2000 Estimate
FY 2001 Request
ESF
5,000
5,000
8,000
DA
16,000
11,750
10,000
CSD
10,000
1,000
1,000
National Interests:
It is in the U.S. national interest to promote economic prosperity and the opening of markets in the Asia Pacific region, which are important not only for the American jobs created, but also to underpin peace and stability in the area. Three years after the onset of the Asian financial crisis, most affected economies have turned the corner, but continued efforts are required to maintain positive momentum. The Asian economic crisis put tremendous pressure on governments and economies throughout the region. The crisis also adversely affected political, strategic and security interests of the United States, as well as our substantial economic and commercial interests. Despite the continued strength of the U.S. economy, important sectors, such as agriculture and steel felt the impact of the Asian downturn as U.S. exports declined. It is in the U.S. interest to promote reforms that will enable Asia Pacific countries to sustain long-term economic growth and prevent future crises.
Objectives and Justification:
The Accelerating Economic Recovery in Asia (AERA) initiative funds technical assistance and training, in close coordination with World Bank and Asian Development Bank efforts, to help countries resolve the deeply rooted systemic problems that paralyzed their economies during the crisis in 1997 and 1998. While all countries in the region are eligible to receive AERA support, funds have so far concentrated on Thailand, Indonesia, and the Philippines because of their demonstrated commitment to reform. The program is currently working in a number of key areas in these countries, including assisting more than 30 Thai businesses to diagnose and resolve business problems, assisting the Bank of Thailand to strengthen its bank supervision and on-site examination policies and procedures, helping Indonesia and the Philippines undertake legislative reforms in areas such as competition law, government procurement, consumer protection, arbitration and secured transaction.
Financial reforms, improved governance and greater transparency contribute to more efficient operation of markets, attract capital and contribute to regional economic recovery. U.S. government leadership helps leverage key expertise and resources from the private sector, in support of the reform policies we advocate, to limit the effects of future global economic shocks. Such adjustments can impose major social costs and human hardship, endangering popular support for economic growth policies and constitute a real threat to democratic institutions.
In FY 2001, continuation of modest programs (funded through a combination of ESF, DA and CSD) already in place will continue to help foster confidence among citizens of affected countries that reforms bring real benefits. AERA funds will also improve crisis countries' capacity to identify and target multilateral development bank and other resources available for programs designed to maintain social stability during economic reforms. Technical assistance will help affected countries more quickly implement programs to alleviate social costs of economic adjustment.
EAP REGIONAL DEMOCRACY
($ in thousands)
Account
FY 1999 Actual
FY 2000 Estimate
FY 2001 Request
ESF
175
2,000
5,000
National Interests
It is in the U.S. national interest to facilitate democratization in nations where it has been slower to take root or which are at a critical stage in their evolution towards full democracy. Regional democracy funds support projects to promote democratic institution building in key countries in East Asia and the Pacific.
Objectives and Justification
EAP democracy funds are requested to support U.S. based and Asian non-governmental organizations, as well as governmental agencies working within their Asian societies in efforts to build democratic institutions and set standards for good governance and transparency. Support would be given to projects which create or enhance civil societies that can advocate on behalf of human rights, women's rights, workers rights, the rule of law, and freedom of the press and assembly. The fund would also promote regional dialogues focused on strengthening national or regional networks of human and worker rights, and on heightening the attention paid to human rights by Asian governments.
Among the objectives of the EAP Regional Democracy Fund are the reduction of governmental restrictions on freedom of association for political parties, journalists, non-governmental organizations, and other civil society groups leading towards the establishment of more pluralistic societies. Other goals include increasing the participation of international monitors in national elections, conducting training in rule of law for both civilian and military leaders, and encouraging the reduction of military involvement in governance. Regional Democracy funds also support the enactment and enforcement of laws which increase transparency at all levels of government, both central and local, protect labor rights, workplace health and safety, equality in the workplace, and encourage free trade unions and improved adherence to International Labor Organization standards.
EAST ASIAN AND PACIFIC ENVIRONMENTAL INITIATIVE
($ in thousands)
Account
FY 1999 Actual
FY 2000 Estimate
FY 2001 Request
ESF
3,825
3,500
6,000
National Interests:
It is in the U.S. national interest to secure a sustainable global environment in order to protect the U.S. and its citizens from environmental degradation. By working bilaterally with key countries, especially in Southeast Asia, and with regional multilateral organizations such as the Association of Southeast Asian Nations (ASEAN), the Asia-Pacific Economic Cooperation (APEC) forum, and the South Pacific Regional Environment Program we can better address global, regional, and national environmental challenges.
Objectives and Justification:
In FY 1999, the EAP Environmental Initiative focused on providing follow-up response to the 1997-98 fire and haze crisis in Southeast Asia, including by promoting long term policy reforms in forestry and land use, and marine resource use and conservation. On crisis follow-up, the U.S. Forest Service, Interior, and NOAA's National Weather Service worked to improve regional forecasting and fire response coordination. In order to address underlying causes, we funded additional programs to change land use and forestry management practices. EAP environment funds also helped governments reduce destructive fishing practices and support the coral reef programs of the South Pacific Regional Environment Program. In FY 2000, the environmental initiative funds are largely focused on providing policy and technical assistance in Indonesia during this critical democratic transition period.
In FY 2001, EAP environment funds will build upon successes in priority program areas from FY 2000, namely forestry and land use management (including terrestrial biodiversity conservation), coastal resources management (including marine biodiversity conservation), and environmental planning and management. Projects again will be solicited from U.S. embassies and AID missions in conjunction with international and Asian NGOs as well as with Washington technical agencies. The success of the EAP Environment Initiative projects in alleviating some of the environmental stresses in the area has increased the interest of regional governments and NGO communities in this program, leading to more project grant requests each year.
EAP REGIONAL SECURITY
($ in thousands)
Account
FY 1999 Actual
FY 2000 Estimate
FY 2001 Request
ESF
250
250
250
National Interests:
Active participation in and support for multilateral regional security fora is a significant element of the Administration's Asia-Pacific security policy. To date, our involvement has concentrated on two multilateral fora, the 22-member ASEAN Regional Forum (ARF) and the 5-member (U.S., Japan, China, Russia, and South Korea, with North Korea invited) Northeast Asia Cooperation Dialogue (NEACD). The overarching, long-term U.S. goals for the ARF, the only region-wide official security grouping, are to foster its development into an institutionalized mechanism that makes tangible contributions to maintaining peace and security in the region through a combination of dialogue, confidence-building measures, and preventive diplomacy. The NEACD process supplements our other peacekeeping efforts in this critical Northeast Asia sub-region and is the one semi-official forum that focuses on Northeast Asia security issues.
Objectives and Justification:
The East Asia-Pacific region has begun only recently to develop regional security fora in an effort to promote confidence building and preventive diplomacy. The ARF and NEACD, established in the early 1990s, hold promise for successfully addressing regional differences before these erupt in conflict, but are still in early organizational phases. In the absence of institutionalized secretariats and assessed contributions to support these fora, progress in developing and implementing specific confidence building measures and advancing preventive diplomacy objectives depends on the initiative of and funding by individual member states. Funds support U.S. initiatives in these multilateral fora, such as professional development programs, continued development of an "e-policy" Internet communication network, symposia and workshops on enhancing confidence and transparency, and establishment of information- sharing databases in such areas as maritime cooperation and small arms trafficking.
Expected outcomes include an increased ARF focus on preventive diplomacy, increased participation by defense officials in ARF meetings and activities, increased practical cooperation among ARF members in such areas as disaster relief and curbing trafficking in illicit small arms, and increased NEACD focus on transnational security challenges.
EAP REGIONAL WOMEN'S INITIATIVE
($ in thousands)
Account
FY 1999 Actual
FY 2000 Estimate
FY 2001 Request
ESF
--
2,500
4,000
National Interests:
The EAP Regional Women's Issues fund helps advance democracy and human rights by improving the status of women throughout East Asia and the Pacific. Enhancing the status of women leads to full enfranchisement of nations' citizens, higher educational levels, more skilled labor forces, and reduced population growth.
Objectives and Justification:
The three objectives of the Regional Women's Issues program are to increase women's participation in the political process, to eliminate violence against women, and to reduce the trafficking of women and children within and from the East Asian and Pacific region. In FY 2000, $500,000 was dedicated to help organize a regional meeting of 23 nations to design concrete follow-on projects to reduce the trafficking of women and children. These projects will focus on the prevention of trafficking, the protection of women and children who are victims of trafficking and their reintegration into home societies, and the prosecution of the traffickers and their collaborators. The remaining $2 million of the FY 2000 funds will focus on Indonesia and support programs and projects which will empower women to participate fully in democracy-building efforts and in government at all levels. These funds will also support ongoing projects to reduce violence against women, particularly domestic violence, through advocacy programs to enact laws that protect women.
In FY 2001, the Regional Women's Issues fund will build on the previous year's initiatives through supporting non-governmental organizations and regional governments to reduce the trafficking of women and children. Prevention programs will utilize both electronic and print media and school activities to educate populations most vulnerable to being recruited by traffickers. We will also fund rescue mechanisms to assist women and children who escape from trafficking networks, including shelters, training centers, and medical, counseling, and legal services. In addition, programs to enact legislation against trafficking or to improve existing laws will be funded to increase the effectiveness of law enforcement and judicial systems with the goal of prosecuting and punishing the traffickers. Projects to increase the empowerment of women within both local and national governments and to reduce domestic violence and protect victims will also continue.
KOREAN PENINSULA ENERGY DEVELOPMENT ORGANIZATION (KEDO)
($ in thousands)
Account
FY 1999 Actual
FY 2000 Estimate
FY 2001 Request
NADR
53,100
35,000
55,000
National Interests:
KEDO was established in 1995 to help implement the Agreed Framework between the United States and the Democratic People's Republic of Korea (DPRK), signed on October 21, 1994. In the Agreed Framework, the United States agreed to arrange for the construction of two light-water reactors (LWRs) in North Korea and annual shipments of heavy fuel oil (HFO) until completion of the first LWR.
For its part, North Korea agreed to "freeze" and eventually dismantle its potentially dangerous graphite-moderated nuclear reactors and related facilities at Yongbyon and Taechon, and to allow eventual implementation of IAEA full-scope safeguards on these nuclear facilities. The Agreed Framework remains the primary means of ensuring: (1) the complete dismantlement of the DPRK's nuclear weapons capability; and (2) North Korea's full compliance with its nuclear nonproliferation obligations.
Objectives and Justification:
Approximately $51.25 million of the funds requested will be used for the purchase and shipping of HFO to North Korea in accordance with the Agreed Framework, with the balance of the funds supporting KEDO's administrative costs. The United States, along with the European Union (which has contributed 15 million euros annually), is the primary source for HFO funding, having contributed $171.6 million to KEDO since 1995, plus an additional $32 million for the canning of spent fuel at Yongbyon. For their part, the ROK and Japan are taking the lead in funding the LWR project. Thus far, the ROK has contributed $65.8 million to KEDO, and has pledged to finance 70 percent of the estimated $4.6 billion cost of the LWRs. Japan has contributed $19.9 million to KEDO, and has pledged $1 billion toward the LWR project. Other countries have contributed over $25 million to KEDO; the United States continues to press the international community for additional funding.
The comprehensive policy review undertaken last year by former Secretary of Defense William Perry supported the maintenance of the Agreed Framework as a key to our overall approach to the DPRK, in particular with respect to constraining North Korea's nuclear activities. Using the Agreed Framework as a basis, the United States has initiated discussions with the DPRK in an effort to satisfy our concerns on North Korean activities in such areas as missile development and possible clandestine nuclear activities. Support for KEDO is essential to carry out the terms and conditions of the Agreed Framework and to achieve our high-priority nuclear nonproliferation objectives.
Special Notice: Information Related to Section 620G of the Foreign Assistance Act of 1961, as amended. Sixteen governments, which are recipients of U.S. assistance covered by section 620G of the Foreign Assistance Act, have contributed, or are expected to contribute, to KEDO. They are Indonesia, the Philippines, the Republic of Korea, Malaysia, Singapore, Thailand, the Czech Republic, Greece, Hungary, Poland, Argentina, Brazil, Chile, Mexico, Peru and Oman. A detailed explanation of the U.S. assistance to be provided to each of these countries, including an estimate of the dollar amount of such assistance, and an explanation of how the assistance furthers United States national interests, may be found in the Regional and Country Programs section of this document.
SOUTH PACIFIC MULTILATERAL FISHERIES TREATY
($ in thousands)
Account
FY 1999 Actual
FY 2000 Estimate
FY 2001 Request
ESF
14,000
14,000
14,000
National Interests:
The 1988 South Pacific Multilateral Fisheries Treaty is a key component of our strong overall foreign relations with the Pacific Islands States and a model for others. It provides a solid foundation upon which the U.S. and the member states of the Pacific Islands Forum (known as the South Pacific Forum until October 1999) can cooperatively address the challenges of sustainable fisheries conservation in the South Pacific. This Treaty, through positive multilateral cooperation, achieves profitable, sustainable management of fisheries resources and ensures continued access for U.S. fishing vessels to Pacific Ocean fishing areas.
Objectives and Justifications:
Since the Treaty came into force, access to broad areas of the Pacific, including parts of the exclusive economic zones of the 16 governments which make up the Forum Fisheries Agency (FFA), has been excellent. This positive fisheries relationship, as well as a common desire to conserve fisheries resources in the South Pacific, has carried over into the ongoing multilateral negotiations for a conservation and management regime in the Central and Western Pacific, where we are cooperating closely with the Pacific Island States. The goal of these ongoing negotiations is to develop a mechanism to ensure that highly migratory resources in that region are not depleted.
Continued funding to the 16 governments of the FFA in FY 2001 will help avoid conflict over access to and management of highly migratory fisheries resources and ensure continued unimpeded access by U.S. fishing vessels to highly productive fishing areas in the Pacific Ocean, pursuant to the Treaty.
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Footnote:1. Excludes $1.297 million in FY99 unallocated ESF and $3.25 million in prior year ESF provided for East Timor during FY 1999.
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