[House Hearing, 113 Congress] [From the U.S. Government Publishing Office] STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS APPROPRIATIONS FOR 2015 ______________________________________________________________________ HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS HOUSE OF REPRESENTATIVES ONE HUNDRED THIRTEENTH CONGRESS SECOND SESSION ______ SUBCOMMITTEE ON STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS KAY GRANGER, Texas, Chairwoman FRANK R. WOLF, Virginia NITA M. LOWEY, New York MARIO DIAZ-BALART, Florida ADAM B. SCHIFF, California CHARLES W. DENT, Pennsylvania BARBARA LEE, California ANDER CRENSHAW, Florida DEBBIE WASSERMAN SCHULTZ, Florida KEVIN YODER, Kansas HENRY CUELLAR, Texas THOMAS J. ROONEY, Florida NOTE: Under Committee Rules, Mr. Rogers, as Chairman of the Full Committee, and Mrs. Lowey, as Ranking Minority Member of the Full Committee, are authorized to sit as Members of all Subcommittees. Anne Marie Chotvacs, Craig Higgins, Alice Hogans, Susan Adams, Jamie Guinn, and Clelia Alvarado, Staff Assistants ______ PART 5 Page Department of State.............................................. 1 U.S. Agency for International Development........................ 431 United Nations and International Organizations Budget.......................................................... 597 U.S. Assistance in Africa........................................ 691 U.S. Assistance to Promote Freedom and Democracy in Countries with Repressive Environments...................... 785 U.S. Assistance to Combat Transnational Crime.................... 839 839 ______ Printed for the use of the Committee on Appropriations ______ U.S. GOVERNMENT PRINTING OFFICE 92-737 WASHINGTON : 2015 COMMITTEE ON APPROPRIATIONS ---------- HAROLD ROGERS, Kentucky, Chairman FRANK R. WOLF, Virginia NITA M. LOWEY, New York JACK KINGSTON, Georgia MARCY KAPTUR, Ohio RODNEY P. FRELINGHUYSEN, New Jersey PETER J. VISCLOSKY, Indiana TOM LATHAM, Iowa JOSE E. SERRANO, New York ROBERT B. ADERHOLT, Alabama ROSA L. DeLAURO, Connecticut KAY GRANGER, Texas JAMES P. MORAN, Virginia MICHAEL K. SIMPSON, Idaho ED PASTOR, Arizona JOHN ABNEY CULBERSON, Texas DAVID E. PRICE, North Carolina ANDER CRENSHAW, Florida LUCILLE ROYBAL-ALLARD, California JOHN R. CARTER, Texas SAM FARR, California KEN CALVERT, California CHAKA FATTAH, Pennsylvania TOM COLE, Oklahoma SANFORD D. BISHOP, Jr., Georgia MARIO DIAZ-BALART, Florida BARBARA LEE, California CHARLES W. DENT, Pennsylvania ADAM B. SCHIFF, California TOM GRAVES, Georgia MICHAEL M. HONDA, California KEVIN YODER, Kansas BETTY McCOLLUM, Minnesota STEVE WOMACK, Arkansas TIM RYAN, Ohio ALAN NUNNELEE, Mississippi DEBBIE WASSERMAN SCHULTZ, Florida JEFF FORTENBERRY, Nebraska HENRY CUELLAR, Texas THOMAS J. ROONEY, Florida CHELLIE PINGREE, Maine CHARLES J. FLEISCHMANN, Tennessee MIKE QUIGLEY, Illinois JAIME HERRERA BEUTLER, Washington WILLIAM L. OWENS, New York DAVID P. JOYCE, Ohio DAVID G. VALADAO, California ANDY HARRIS, Maryland MARTHA ROBY, Alabama MARK E. AMODEI, Nevada CHRIS STEWART, Utah William E. Smith, Clerk and Staff Director (ii) STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS APPROPRIATIONS FOR 2015 _______ Wednesday, March 12, 2014. DEPARTMENT OF STATE WITNESS HON. JOHN F. KERRY, SECRETARY, U.S. DEPARTMENT OF STATE Opening Statement of Chairwoman Granger Ms. Granger. The Subcommittee on State, Foreign Operations, and Related Programs will come to order. Mr. Secretary, I want to welcome you back to the subcommittee. We look forward to your testimony. During our time with you today there are many new issues that members want to address. In Ukraine, the situation continues with no resolution in sight in spite of your personal engagement to try to bring this crisis to an end. In Afghanistan, even after intense negotiations, the government refuses to sign a bilateral security agreement with the United States, putting our troop presence and diplomatic footprint in doubt and increasing the risk that extremists will return. In Africa, new conflicts have broken out, deepening human suffering in areas that have struggled for so many years. All of these troubling developments must be addressed, yet most of the topics we discussed last year are still relevant today. The members of this subcommittee, like you, continue to watch the situation in Egypt, even while the country is tackling significant security and economic challenges. We know Egypt is moving toward elections later this year. During this critical time, the United States must continue to work with the government of Egypt and support the Egyptian people. The Syrian crisis continues, even though through your intense efforts last year, there was hope that the regime would give up its chemical weapons. In spite of all the work of the U.S. Government and our international partners, the efforts to remove chemical weapons have stalled, extremists are taking the upper hand, and more lives are lost every day because of the violence and blocking of humanitarian aid. The Syrian crisis is affecting the whole region. Its neighbors are now bearing the burden of 2-1/2 million refugees. These neighboring countries continue to do all they can to help the Syrians pouring over their borders, but we must do all we can to help them. Because of the flow of refugees from Syria, Jordan's population has increased by nearly 10 percent, and Lebanon's population has increased by an estimated 20 percent. Over the last year, you have worked with your international partners to put in place an interim agreement with Iran that allows for some sanctions relief if Iran takes steps to dismantle its nuclear program. There is no doubt that sanctions brought Iran to the table, and the United States must keep the pressure on as a final deal is negotiated. We all know too well that the security of the United States and the security of our steadfast ally Israel is at stake here. In addition to these policy issues, we have questions about the administration's budget request. The base funding level requested for State and USAID is roughly the same as last year, but you sacrificed some of the priorities of the members of this committee to make room for the administration's initiatives. Many programs that we support in a bipartisan way have been reduced below last year's level, such as global health and democracy funding. We will be seeking additional information so we understand your proposal. Another difficult budget issue we need to address together is embassy security. We need assurance that the proposed funding level is adequate to address the recommendations in the Benghazi Accountability Review Board report. Next, I want to mention an issue that I know is a priority for you, and that is Middle East peace. You have made countless visits to the region to try to move the Israelis and Palestinians toward peace, and I want to be clear, achieving peace is our priority, too, and this Congress is unwavering in our bipartisan support for Israel. You and the President have recently made some strong statements about Israel's role in the peace process. You raised the issue of boycotts if a peace agreement is not reached, and the President has said that Israel needs to articulate an alternative approach if an agreement is not possible. I hope you will give us an update on peace talks during your testimony today and explain those comments to the committee. I also want to mention an issue that is a priority for me in my own backyard and ours. Mexico is our neighbor, and we want our neighbor to be prosperous and also to be safe. This can only be achieved if we have a true partnership. I hope you will comment on the current relationship between our countries so the subcommittee knows if the funding provided is making a difference. And finally, I want to raise a concern I know I share with you, Mr. Secretary. We must stop the international crisis of wildlife poaching and trafficking. Criminal networks are destroying species and using the funds for illegal activities around the world. I thank you for what you have done in this area since we talked about it last year, and I hope the funds in the final year, the fiscal year 2014 bill will be used to bring an end to this crisis. However, the budget materials that the committee has received so far don't reflect fiscal year 2015 funding for wildlife poaching and trafficking, and the committee expects that level of detail as soon as possible. In closing, I want to thank you and the thousands of diplomats, development officers, and implementing partners for what you do every day to promote U.S. interests abroad. As you have said, in an increasingly interconnected world, global leadership is not a favor we do for other countries, it is a strategic imperative for the United States of America. We all agree with you on that point and want to continue to work with you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Ms. Granger. I will now turn to my ranking member and partner in this, Mrs. Lowey, for her opening remarks. Opening Statement of Mrs. Lowery Mrs. Lowey. Thank you, Madam Chair, and welcome, Secretary Kerry. I join Chairwoman Granger in welcoming you back to our subcommittee. Let me also say I know the chairwoman joins me in congratulating you on the birth of your granddaughter. Secretary Kerry. Thank you. Mrs. Lowey. Our country is fortunate to have your thoughtful, effective, and respected leadership, with so many grave challenges around the world, from the crisis in Syria to the Middle East peace process, from nuclear negotiations with Iran, to human rights abuses and conflicts throughout the world, and of course, urgent concerns in Ukraine. Today we expect updates and insights into how your budget request will address these and other threats to peace, stability, and security. Mr. Secretary, I have often hoped for Middle East peace in my lifetime, and I strongly support your efforts to facilitate a two-state agreement that ensures security for our ally Israel, understanding there are very difficult issues yet to be resolved. We look forward to your assessment of the Israeli- Palestinian negotiations. We all agree we must make it impossible for Iran to make a nuclear bomb, but the clock is ticking on reaching a final agreement. Do we have a set of hard requirements, a bottom line that we need in order to get to an agreement? I remain skeptical of Iran's intentions, especially given their unyielding position against any dismantlement of their nuclear infrastructure. Would any final agreement prohibit Iran from having a heavy water reactor at Arak, or advanced centrifuges that require Fordow to be closed? Additionally, I hope you will address our relationships with Egypt and Saudi Arabia, two important allies in the Gulf. While the United States cannot compromise our principles, we must acknowledge the difficult and volatile circumstances in the region and work to ensure our actions do not alienate our long-standing strategic partners. With regard to Syria, there seems to be a stalemate. Destruction of chemical weapons has not occurred per the agreed-upon schedule. The Assad regime continues to commit despicable atrocities against innocent civilians. Jordan, Lebanon, and Turkey are burdened under the strain of refugees. Please tell us about contingency planning in light of the very real potential of a completely destabilized region and renewed sectarian violence in Iraq. In Afghanistan, as the administration considers reducing our military footprint, I hope you can reassure us about our ability to sustain the gains in security, health, education, and women and girls empowerment so that countless lives will not have been lost in vain. Last week, the House worked quickly to pass Chairman Rogers' and my loan guarantee bill to support Ukraine. It appears the markets are already punishing Russia, and actions by the IMF and EU may soon exacerbate the repercussions. While Russia's overarching foreign policy goals are not entirely clear, I hope to hear details on the prospects for deescalating this crisis, the future of the United States' relationship with Russia, and the impact of these tensions on both negotiations with Iran and the situation in Syria. Mr. Secretary, it is clear that the administration's robust diplomacy and development request is needed now more than ever before to address these challenges and countless other global priorities. Our investments in education, health, women's political participation, climate change, food security, public diplomacy, bilateral family planning assistance, and UNFPA activities, to name just a few, improve lives, expand economic opportunity, and inherently make us more secure. That is why I urge you to rectify one critical shortfall in the budget request--the failure to prioritize international basic education. I will state the obvious. Education is fundamental to all other development outcomes, and is the cornerstone of strong, stable societies. No country has reached sustained economic growth without achieving near universal primary education. Health and child survival, poverty reduction, and women's advancement all leap forward with a strong educational foundation. With 57 million primary school-age children around the world out of school, our job simply is not done. With great respect for your wisdom, integrity, and hard work, thank you again for joining us. We look forward to your testimony. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Ms. Granger. I will now yield to the chairman of the Appropriations Committee, Mr. Rogers, for his opening statement. Opening Statement of Chairman Rogers Chairman Rogers. Thank you, Madam Chairwoman. Mr. Secretary, thank you for being here. I am not sure you know what time it is, given the schedule that you are under around the world. Thank you for your service. It must be very tiring, but challenging. Mrs. Lowey and I are determined as chairman and ranking member of the full committee to pass all 12 individual bills this year, to save you the tyranny of these continuing resolutions, which are herky-jerky, and your staff can't make proper plans on how to spend the money and the like. So we are determined to pass those 12 bills through both bodies and have them signed by the President to allow contemporary needs to be addressed rather than putting spending on automatic pilot based on last year's needs, whatever they were at that time. So it will be a challenge, but we are determined to work with Ms. Granger and all the other subcommittee chairs to get these bills out of here. Unquestionably, the time that you are serving in in the world has got to be one of the most difficult periods we have been through, with problems seemingly on every corner, in Syria and the neighboring countries, in Iran, regional instability, challenges with the transition in Afghanistan, the need for a peace agreement in the Middle East that has eluded so many Secretaries before you, and continued drug trafficking, and violence in South and Central America. There are no easy answers to these complex international challenges. Certainly, each of these unique situations calls for strong U.S. leadership, and in particular, we are all concerned these days, of course, about Ukraine and its territorial integrity. As Ms. Lowey has said last week, the House passed $1 billion loan guarantee for Ukraine, and we are waiting now on the Senate, and I would hope and trust that the Senate would send back an unencumbered loan guarantee bill, as clean as we sent it to them. This is no time to try to attach riders to something of this importance, and I would hope that the Secretary would talk to his colleagues in the Senate and speak to them of the wisdom of sending a clean bill back over to us. We will be working hard to try to figure out with you the proposed spending of the $48.5 billion in discretionary funds in this subcommittee's jurisdiction to help you achieve these disparate goals around the world this year. We look forward to working with you to prioritize your most important needs, and we would hope that you would communicate to us that information. All of us know that this is a difficult period of time financially for our country, not to mention the difficulties you face internationally. On a more personal note, let me take a moment to thank you and those under your charge for assisting a constituent of mine whose young daughter is a victim of international parental child abduction. This incredibly strong mother testified last week before the Senate Foreign Relations Committee about how this growing challenge has impacted her family and so many others similarly situated. Last year over a thousand children were reported abducted from or retained outside the U.S., so I appreciate both your attention and efforts by the Department to engage bilaterally and multilaterally with foreign governments to encourage the safe and timely return of American children to their homes. We have some difficult choices ahead on our side of the bench, as do you on that side. We hope that we can move in parallel to help solve the difficulties that you face. Thank you, Mr. Chairman. Ms. Granger. Secretary Kerry, please proceed with your opening remarks. Your full written statement will be placed in the record, so feel free to summarize your statement. Opening Statement of Secretary Kerry Secretary Kerry. Thank you very much, Chairwoman Granger and Ranking Member Lowey, Mr. Chairman Rogers of the full committee. Let me just thank all of you, first of all, for your very generous comments of understanding of the complications of the world we are living in today, but also I just want to thank you for your thoughtful and substantive consideration of all of these issues that face us. We are deeply appreciative for the leadership that this committee brings to the country. I, as you all know, have spent a lot of time up here, 29- plus years, and in that time, I have learned that choosing to be on the Foreign Relations Committee or the Foreign Appropriations Committee, et cetera, is not necessarily automatically the easiest thing to explain at home, and it doesn't always result in some of the direct claims that you can make about ways in which you have assisted your district, but on the other hand, I think it does because you assist them by advancing the values and the interests of the country and by helping us to increase American security and stability in the world, all of which comes home to roost one way or the other, either in jobs for districts, States, for the country, but also in the safety and security that we are able to achieve as a result of that. Let me just say that I am privileged to lead a remarkable department with men and women all over the world. We have just held our several days' conference of all of our chiefs of mission called back to Washington. Susan Rice spoke to them yesterday. I spent a fair period of time doing a sort of open meeting with them as well as other meetings we have had, and it is really intriguing to see the energy and interest and passion that they all bring to the effort to represent our country abroad, and some remarkable 70,000 people in total in various ways, civil service, foreign service, local employees, particularly local employees make a huge difference to our ability to do our job, and I want to salute all of them. You have each, in your opening comments, focused on the complications of the world we are living in today, different from anything any of us might have imagined. Vastly different from the world as bipolar East-West, Cold War, and even different from the early years of exuberance in the fall of the Berlin Wall. Now there are sectarian, religious extremists, terrorists and other challenges released as a consequence of the fall of those countries and the changes in those countries, and so we are challenged, and I believe it is important for us to get caught trying to change things. That is who we are in the United States. And I cannot tell you how much it has been impressed on me in all of the journeys I have made on behalf of the President and our country how much people do look to the United States of America. I hear it again and again and again everywhere. It is our responsibility to help to make a difference in lots of different situations, and we have to be clear-eyed about the challenges, and obviously the environment has to be ripe for a breakthrough in one place or another, but particularly, for instance, in Ukraine. Congresswoman Lowey, you mentioned the need to try to find a diplomatic solution, and our interest is in protecting the sovereignty, the independence, and the territorial integrity of Ukraine with our European partners and others, and we have a responsibility to be engaged, and we are engaged. We also have to be willing to try to sit down and deescalate the situation, as you said, Congresswoman Lowey. That is why President Obama has asked me to leave tomorrow evening and fly to London to meet with Russia's Foreign Minister Sergei Lavrov on Friday, and I will do that, and we have had previous conversations. As you know, we spoke earlier this week. The President has talked several times to President Putin. I will make clear again, as I have throughout this crisis, that while we respect obviously that Russia has deep historical, cultural, and other kinds of interests with respect to Ukraine and particularly Crimea, nothing justifies a military intervention that the world has witnessed. There are many other legitimate ways to address Russia's concerns, and we are trying to make that very, very clear. In my discussions with Minister Lavrov I have made it clear that there are many reasons for Russia to choose a path of deescalation and of political solution here. We believe that interests can be met and that, most importantly, the desires of the people of Ukraine can be respected and that the international law can be respected. We do not seek a world in which we have to apply additional costs to the choices that have been made thus far. We don't think anybody is more served, better served not for the interests of our efforts in Iran, not for the interest of our efforts in Syria, not for the interest of our efforts with nuclear weapons or Afghanistan or many other places by isolating Russia, but we will do what we have to do if Russia cannot find the way to make the right choices here, and our job is to try to present them with a series of options that are appropriate in order to try to respect the people of Ukraine, international law, and the interests of all concerned. So we will offer certain choices to Foreign Minister Lavrov and to President Putin through him and to Russia with hopes, and I think the hopes of the world that we will be able to find a way forward that defuses this and finds a way to respect the integrity and sovereignty of the State of Ukraine. It couldn't be any clearer. What you all do here and what we talk about here today really matters, and when I think about that, I can't help but recall standing in Kiev just a few days ago near the Maidan on Institutska Street right at the spot where so many were struck down by the snipers, looking at the bullet holes up and down lampposts, looking at these extraordinary memorials that people have spontaneously built, stacks of flowers, candles, photographs, and juxtaposed to the street which was filled with these extraordinary barricades of bedposts and tires and all kinds of detritus, and a street that was covered in a film of the results of the fires that had been lit and the burning that had taken place and the chaos that had ensued. What came through to me were the voices of the people I talked to on the street, telling me how much they wanted to be able to determine their own future and how grateful they were for our support and assistance and how they just wanted to be able to live like other people. One man particularly struck me, he had come back from Australia, and he said, you know, I saw how other people are living, and we just want to be able to make the same choices and live the same way. What we do is true not just for Kiev, but it is true in so many places, and some places that don't always get the headlines. It matters in a place like South Sudan, a nation that Frank Wolf and some of you helped to give birth to, a nation that is now struggling and needs our support in order to be able to have a chance to survive its infancy. It matters in the Maghreb where the State Department is coordinating with France to take down al Qaeda, making sure that French forces have the technology and the weapons that they need. What we do matters to us in terms of what we do in central Asia, where we are working with several nations to stop the trafficking of narcotics, to keep more heroin off our streets, and to cut off financing for terrorists and extremists. What we do matters in the Korean peninsula, where we are working with our partners from the Republic of Korea to make sure that we can meet any threat from North Korea and to continue to push for the denuclearization of North Korea. I was just in China, we can talk about that a little later if you want. But thanks to the State Department's work, the South Koreans are now making the largest financial contribution to these efforts in the peninsula in the history of our joint security agreement. What we do matters from Bosnia to Indonesia in our work with NGOs and civil society groups to defend religious freedom, protecting the universal rights of people to practice their faith freely and working to bring an end to the scourge of Anti-Semitism. This isn't just what we do in this budget, this is an essential part of who we are as Americans. I firmly believe that in this increasingly interconnected world, global leadership isn't a favor that we do for other countries, as you mentioned, Madam Chair, it is vital to our own strength. It is vital to our security and the opportunities that we can provide for our children. Now, I have spent enough years here to know that you shouldn't call anything that costs billions of dollars an automatic bargain, but when you consider that Americans, the American people pay just one penny of every tax dollar for the $46.2 billion in investments in this request, I believe the American people are getting an extraordinary return on their investment. We have kept our funding request in line with what was appropriated to the Department and USAID in fiscal year 2014 within our base request of $40.3 billion, and the additional part of our request for OCO, Overseas Contingency Operations, totals $5.9 billion. With OCO funding we support programs, as you know, in Iraq, Afghanistan, and Pakistan as we continue to right-size those commitments. These resources also provide the U.S., the State Department and USAID with the ability to respond to the humanitarian crisis in Syria and flexibility to meet unanticipated peacekeeping needs. I know it is easy for some in Congress to support larger cuts in the budget, but what is impossible to calculate completely is the far greater price our country would pay for inaction on many of the things that we are facing today. It is impossible to calculate the dangers in a world without American leadership and the vacuum that that would create for extremists and ideologues to exploit, but I am telling you without any doubt more deeply than I ever believed it before when I chaired the Foreign Relations Committee, this year has impressed on me the degree to which if we aren't engaged in these things, we will pay the price somewhere down the road for the vacuum that will be created and for the dangers that will come to our country as a result. For me it is no coincidence that the places where we face some of the greatest national security challenges are also places where governments deny basic human rights to their nation's people, and that is why development assistance, investing in our partnership with our allies, and supporting human rights and stronger civil societies is so critical. These are the surest ways to prevent the kind of tragedy that we are seeing unfold in Syria today. Now, I know that Frank and others of you have seen these horrors firsthand, as have I. You have looked into the eyes of refugees. There is simply no way to articulate how important it is for the richest, most powerful Nation on this planet to do its part to try to make the world a safer and a better place. For the Syrian people, for Lebanon, Turkey, and for Jordan coping with how to keep their societies running and keep extremists at bay while they host millions of now refugees, our support is critical to that. We are the largest donor in the world, and that helps us because it is critical to us that Lebanon and Jordan remain stable. With our assistance to one of our oldest allies in the Pacific as it recovers from one of the worst natural disasters in history, Typhoon Haiyan, we are also leading the way. Through an $56 million contribution from State and USAID to the Philippines, we are working with our partners so that hundreds of thousands of people literally can put their lives back together, and I visited that devastation and saw how it just flattened that community in a matter of minutes. With our core budget request, there is a $1.35 billion contribution to the Global Fund to Fight AIDS, Tuberculosis and Malaria and the goal that President Obama has set today for an AIDS-free generation would have been absolutely unthinkable 10 years ago--it was, I am telling you--because I wrote the legislation with Bill Frist in the Senate that created the first effort on AIDS, and we got the support of Jesse Helms, and the story since then with President Bush growing it into PEPFAR and all of the things that have happened is an amazing story for the United States of America and for the world, and an accomplishment, and we are now working to transition the leadership of these life-saving programs to local hands, with Rwanda, Namibia, and SouthAfrica, some of the first to take the reins. Because of our leadership, children are waking up today in Sub-Saharan Africa who face a very different future from what they did only 10 years ago, and just as our partners in Asia and Europe make a transition from being recipients of American aid, 11 of the 15 countries that we used to give aid to, the biggest aid recipients, are now donor countries. Remarkable story. Korea, a donor country, was a major recipient of aid and so forth. We can be proud of this. Americans, I think we need to talk about it more. We need to get people to see the huge benefit of this one penny on the dollar investment, and part of making sure that African nations and many other emerging markets make the most of opportunities in approving reforms to the International Monetary Fund is going to be a critical part of that. I think all of you know the IMF has been a central part of the transformation of so many countries, and it is also important to greater trade with people in our own hemisphere as well as right here at home, and particularly for trade with Brazil, Chile, Colombia, India, Korea, Mexico, Peru, the Philippines, Thailand, all of whom once borrowed from IMF and now are some of the most powerful traders in the world. So I will just close by saying to you that Ukraine's struggle for independence, particularly its financial independence, will depend on Congress ratifying reforms that will help Ukraine borrow through the IMF's rapid financing instrument. Our $200 million investment and sovereign loans are needed urgently, but it is only through the IMF, a reformed IMF that Ukraine is going to receive the additional help it needs in order to stand on its own two feet. We are doing, I think, amazing stuff out of many of our embassies, consulates around the world, and I just say to you, look at the advocacy from Embassy Lusaka that helped a New Jersey-based firm win an $85 million contract to build 144 bridges in Zambia with the potential to grow to $250 million contract. That is jobs at home. That is U.S. tax benefit, and strengthening of our economy. Our consular staff in Calcutta helped bring an Illinois- based Caterpillar together with Sasan Power Limited on a $500 million deal to develop 396 megawatt power plant. Embassy Wellington and Embassy Apia in Samoa helped TE SubCom, a company based in New Jersey, land a $350 million contract to lay fiber optics across the Pacific. When 95 percent of the world's consumers live outside of our market and when foreign governments are out there aggressively backing their own businesses, believe me, this is the kind of advocacy that American workers need to compete, and that is why I have said since day one of becoming Secretary of State, economic policy is foreign policy, and we have just talked about that with all of our embassy chiefs and mission chiefs who come back to Washington. We have put in place a very strong economic team, and we believe that it is critical to be able to strengthen that. So Madam Chairwoman, this budget keeps our ironclad partnership with Israel intact, $3.1 billion in security assistance, and as we make these investments around the world, we can never eliminate every risk, especially in a world where our vital interests are not confined to secure and prosperous capitals, but we can and will mitigate these risks, and we have been in implementing the ARB and working off the lessons learned in Benghazi. This budget does that, and it does more. It implements all of the recommendations of the independent Benghazi Accountability Review Board, and it makes additional investments that go above and beyond that. Every week I am sitting with our team to evaluate the threats against a number of different embassies, the levels we have drawn down, we have added back, we have had authorized departures, we have had mandatory departures. It is a constant challenge, but I believe we are meeting that challenge appropriately and allocating our resources in a way that best protects the men and women serving our country. I believe this budget strikes a balance between the needs to sustain long-term investments in American leadership and the political imperative to tighten our belts here at home. I believe the budget is a blueprint for providing the minimum our people need to be able to carry out their mission, and to enhance national security and promote global stability. I will just close by saying to you it is never, and that is not a budget that we would like to have, this is the budget we have to have under the circumstances of the budget agreement, and that is a longer conversation. Maybe we will get into some of that today. Thank you, Madam Chairwoman. Ms. Granger. Thank you, Mr. Secretary. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Ms. Granger. Thank you for your detailed discussion on Ukraine. This subcommittee and the Congress also understands the urgency, which is why we passed so quickly the $1 billion loan guarantee, and we understand that the administration is also going to redirect existing funds to provide technical assistance to the government ministries. My concern I would like you to discuss first is the funding for Europe and Eurasia that is reduced in your fiscal year 2015, it goes down by 18 percent from the levels in fiscal year 2013. So how does your budget request help to support other countries in the region that may also feel threatened and want to continue to work with the United States and the western partners? Secretary Kerry. Well, Madam Chairwoman, we actually believe the fiscal year 2015 request includes $1.4 billion, which is 8 percent above 2013 for operations and assistance programs in the Asia-Pacific region to do a number of things: Deepen the alliances, expand and strengthen partnerships, support ongoing operations. We have had to do some trade-offs, but where we have done some trade-offs there is money we believe in the pipeline, and we are able to keep up the current efforts, so we don't believe it is a reduction in effort at all. We think it is an increase overall because of the way in which we have been able to shift additional support. So, you know, in our judgment we are positioned as powerfully as we have ever been within the region. I literally just left a meeting with our East Asia-Pacific, all of our representatives talking about how we are dealing with Japan, South Korea, China, North Korea, ASEAN, enforcing our interests with respect to the South China Sea and dealing with additional efforts. Ms. Granger. My concern was Europe and Eurasia. Secretary Kerry. Well, in Eurasia we have 217.8 million, which is 44 percent of the EUR bureau's entire request, 44 percent, and we are going to prioritize funding for Georgia, Ukraine, Moldova, supporting reforms necessary for European integration and so forth. In the Balkans we have 27 percent of the EUR entire bureau request, and our European partners represent about 10 percent of the EUR request. So I think we are targeting this to support democratic, the democratic transformation process and reforms, economic, military, justice sector. We really believe while it is a decrease, the largest dollar amount decreases are in Poland and Kosovo, where we think we have made up for it through both European presence as well as the success that has taken place there. Ms. Granger. I would like to talk to you about the later also. But I will go on. The other concern has to do with Egypt and there are a lot of changes that have occurred. One of the changes that hasn't occurred is the importance of our relationship with Egypt, and the administration's policy to withhold the delivery of the military equipment has brought a lot of questions from the Egyptians to this subcommittee and certainly to me. It sent a message to the Egyptians, but they are not sure what the message is. So it has left members of this committee wondering what the policy is, especially when the peace treaty with Israel is being upheld. In fact, the Egyptians and Israelis are communicating better, they say, than they ever have. The Egyptian military continues to cooperate with the United States and is taking actions that really are very encouraging, destroying the smuggling tunnels in Gaza. So as this continues, I am concerned and members of the subcommittee are concerned that we have not resumed our assistance and what is happening to Egypt in the relationship, which has been so important having to do with this equipment. Secretary Kerry. Well, Madam Chairwoman, you raise a lot of very important points about what Egypt is doing and about the importance of the relationship. We don't disagree at all about the importance of the relationship. Egypt is a very vital relationship. It is a quarter of the Arab world. It has always been sort of the hub of the region, if you will. It faces some enormous challenges right now, and we are well aware of that. We want this interim transitional government to succeed. We are committed to try to help make that happen, but they need to help us to help them at the same time by implementing some of the reforms that we have been talking with them about with respect to inclusivity, journalists, some of the arrests and so forth. We have had these conversations. I met with the foreign minister of Egypt just this past week abroad. We had a very good conversation about it. I have had a number of telephone conversations, including with him, with foreign ministers as well as with Field Marshal Al Sisi most recently. It is our hope to be able to make that transfer providing there is a conclusion drawn by our team with respect to some of the things we have been anticipating them doing, but I can't deny that their efforts on security in the Sinai, their efforts on security in enforcing the peace, the truce with Hamas and Gaza has been very, very important, and we have a strong security relationship with them, strong military-to-military relationship. They want that to be strong, we want it to be strong, and I am hopeful that in the days ahead I can make the appropriate decision, and when I say days ahead, I mean short term. Ms. Granger. So you---- Secretary Kerry. It is up to me. I have the certification, thanks to you. You all worked very hard with us on the language, we are very appreciative of the language that, the standard you have adopted, and I am very, very hopeful that in very short order we will be able to move forward. Ms. Granger. So we won't wait for a new President, new parliament, we will do it before that? Secretary Kerry. I can't absolutely say with certainty, but it is our hope to be able to do that very soon. Ms. Granger. My last question, and this is also on Egypt, has to do with the extremist groups that are based in the Sinai, the level of sophistication, what is happening there. Hundreds of Egyptian police and military have been killed. So now the way we understand it is that these terrorists are also targeting tourists, which of course hurts Egypt, hurts us and hurts Egypt's progression. Can you tell me what we are doing about that or any updates on the situation? Secretary Kerry. We are cooperating very, very closely, and I am pleased, you know, that cooperation has never changed in this process. It is security cooperation. We cooperate with Israel also on it. Israel is very engaged in also dealing with this it is a challenge for the region. The principal group there is a Ansar Bayt al-Maqdis, which is engaged in not just attacks against interests in the Sinai itself, but there is some evidence that they are playing outside of that and into Cairo and other parts of Egypt itself. So it is a serious threat. We all take it seriously. That is one of the reasons why we would like to be able to get the Apaches up here and meet this standard. They have some 33 Apaches, not as many are flying; unfortunately, there are very few that are flying capable right now, which is why that is a pressing issue, and they need them with respect to the prosecution of our counterterrorism efforts in that region. But we are deeply engaged providing different kinds of assistance, some of which I can talk about here and some of which we would have to talk about in a classified session. Ms. Granger. You can see why it's confusing, however, we understand there is a problem, and this equipment could help the problem. Mrs. Lowey. Secretary Kerry. I get it, and I have talked to them very directly about that. I think they understand things that need to happen here, and I think my hope is, again, that in the next days, we will be in a position to be able to move forward. Ms. Granger. Thank you. Mrs. Lowey. Mrs. Lowey. Thank you, again, Mr. Secretary, and I particularly appreciate your activity with regard to Ukraine, but of course there are many other questions we have to ask. I would ask for you to keep us up to date on your conversations with Foreign Minister Lavrov. I can remember meeting with you in July and asking what does Russia want with regard to Syria? What does Russia want with regard to Iran? And I have a feeling we will still be asking that question, but I appreciate your actions and your positive steps. I want to pursue some questioning on the Israeli- Palestinian peace process. During many of our discussions, I have said I hope to see peace in the Middle East in my lifetime. The press reports that Israel and the Palestinians remain divided on all the major issues, including border security settlements, Jerusalem, Palestinian refugees and recognition of Israel as a Jewish state. So first of all, I would like you to update us on the progress of renewed negotiations between the Palestinians and the Israelis, and in particular, is it possible for the parties to reach an outline for a final deal by April 29th? Should an extension be necessary, would an agreement to extend talks require Israeli and Palestinian signatures? I know that President Abbas is due at the White House on March 17. Abu- Mazen has stated that without an agreed framework, the PA would resume their drive to join the U.N. and other international bodies. Do you believe that Abbas will revert to efforts to achieve member status at specialized agencies of the U.N.? Did the administration request waiver authority to continue funding on a case-by-case basis for U.N. entities such as the WHO and IAEA because you believe that Abbas will resume his U.N. campaign, and what is the administration's plan to forestall the PA's attempts to gain recognition in such organizations? Again, your energy has been extraordinary. I think 10 or probably 12 trips to that region of the world, and we appreciate your commitment. Could you discuss with us where you are and use some of these questions as a guideline? Secretary Kerry. Sure, I would be delighted to, but I hate to say it, but you are light on the number of trips. There have been much more in the region, about 12 or 13 to actually Israel and Palestine, or Palestinian territories. Let me answer your question. On the waiver, I want to go to the waiver just very quickly because then I will come back to the general situation. We would like a waiver, yes, we do want a waiver. We need a specific waiver, not because we feel they are going to go, but because we already, we can't vote at UNESCO. We have lost our vote, and we think that it is sort of a, you know, it is a policy that was meant to deter, but in fact, is hurting us more than it is deterring, and so has the prospect of doing that. If things were to fall apart, I can guarantee you that President Abbas will not be deterred by any consequence in terms of our loss of funding. That is not going to deter him. So our loss of vote or funding is our loss, and what happens is we actually lose our voice and our capacity to fight for Israel and to fight for other interests we have. We are stripped of that. If they act, it doesn't seem very sensible to put ourselves in that position. So we would like a waiver, and I think we will be coming to you to talk about that. I do believe there are ways that we can reach an agreement that would see an extension of the, I hope would be able to be reached that might be able to have an extension of that. I don't want to predict with certainty, but I would hope. Now, my bigger hope is that we can find a way forward that builds on the progress that is very hard to lay out to people, and you are just going to, I am afraid, have to take my word for it. While there are gaps, yes, and some of them very significant, yes, you have to see those gaps in the context of the negotiation. Certain narrative issues are so powerful and so difficult, that neither leader is going to definitively cede on them at an early stage of the negotiation. It is just not going to happen. They are big ticket items in the context of the trading and of the concessions that might or might not be made. So I am not going to talk about these in any kind of detail here today except to say to you that I believe progress has been made in certain areas, while great gaps, obviously, as I just described, do remain. Our hope is we can get some kind of understanding. I am not going to describe what it would be, but some kind of understanding ofthe road forward. I do believe both parties are serious, both parties want to find a way forward, but each of them, you know, the level of mistrust is as large as any level of mistrust I have ever seen on both sides. Neither believes the other is really serious, neither believes that both, that the other is prepared to make some of the big choices that have to be made here. I still believe it is possible, but difficult. And so we are going to proceed as privately as we have. I am not going to, with your understanding, I hope, and respect, lay out where the parties are or what the current tensions are over. I just don't think it serves anything. I have been the one pushing the hardest for them not to negotiate in public, and notwithstanding the best efforts, there have been huge restraints, I must say. Most of the details are not out in the marketplace of conversation, but there have been enough public dramatic statements of one position or another that I think gets in the way of the negotiation. So we are going to continue, President Abbas comes here this week, next week, we are looking forward to that conversation just as we looked forward to the conversation the President had with Prime Minister Netanyahu 10 days ago or so, and each of these is informative, each of them has helped to inch forward, and in this particular challenge, inches are acceptable and pretty good and helpful, and we are going to keep moving the way we are moving. Mrs. Lowey. I want to thank you. Because there are so many of us, I won't go on to another question, Mr. Secretary, but I just want to mention one of our very important grantees took a position with regard to the Palestinian boycott after the Soda Stream issue. I thought it was totally inappropriate, and I made it clear to them in a letter and in a public statement. It seems to me that when you have a business that is hiring 900 people in the West Bank, employing both Palestinians and Israelis, that should be supported. We are investing economic development funds, and I know you are particularly focused on investing in economic development and going out to the private sector as well to raise those dollars. So for one of our grantees to support this boycott, divestment, and sanctions drive, I just wanted to put on the record that I thought it was outrageous. Thank you. Secretary Kerry. Well, thank you, and I think you know our position is we strongly oppose the boycott process. Mrs. Lowey. Thank you. Ms. Granger. Chairman Rogers. Mr. Rogers. Thank you, Chairwoman. Mr. Secretary, in a trip I made recently to Israel, the one thing I heard more than anything else there was the word "incitement," and it is plain, the PA especially, is teaching and preaching hatred of the Israelis, and that has got to be a major stumbling block to your efforts to bring a peace agreement about. In the omnibus bill that we passed in January, thanks to the work of Chairwoman Granger and Ranking Member Lowey, there was the provision added that requires you to certify to the committee that the Palestinian Authority is acting to counter incitement of violence against Israelis, and is supporting activities aimed at promoting peace, coexistence and security operations with Israel. This is an issue that is tough to deal with especially, but this, I think, gives you some ammunition to try to tamp down the incitement to violence and hatred of Israelis that has got to be a major stumbling block to the peace agreement. What do you think? Secretary Kerry. Well, it is a problem. It is a challenge, and it is very much on the table in our discussions; and if we get some kind of understanding of how we will go forward, it will include, I believe, a joint understanding of steps that need to be taken on both sides in order to deal with the problem of incitement. Mr. Rogers. But the law says that you have got to certify before you can deliver the money that we appropriated to the PA, before you deliver the money, you have got to certify to us---- Secretary Kerry. It is a good lever. I appreciate it. Mr. Rogers. The question is, what are you going to do about it? Secretary Kerry. Well, I am going to make the judgment appropriately obviously; and hopefully we will have movement on that in the context of what we are doing here that will permit me to. If we don't, I won't. Mr. Rogers. The time is upon us. It is for fiscal year 2014. No moneys can be delivered to the PA until you certify that they are fighting against incitement. Secretary Kerry. There are steps being taken. Is it enough at this point in time? Are there still problems with textbooks and some of the teaching and some of the camps, and I have seen videos and other things that are very disturbing. We have called them to attention, and we are working on it. So I hope to be in a position to be able to do that, Mr. Chairman; but I am mindful of my responsibility to do it appropriately. Mr. Rogers. When can we expect that? Secretary Kerry. Before we give them any money. Mr. Rogers. That is what I like to hear, but I am looking for a date. Secretary Kerry. Let me get through the next couple weeks, and maybe I can give you a quicker answer. Mr. Rogers. Well, we will be watching that. This, I think very, very thoughtfully on the part of the chairwoman and Ms. Lowey, a very thoughtful process by which pressure can be brought to bear. Secretary Kerry. Absolutely. No question. But let me say to you, it is something that is a concern within leadership. It is not always something that is controlled all the way down the chain. It is not always, you know, it is not always easily accessible. Even though one person may issue an instruction, some things don't happen. So it is a little more complicated, but we are working on it. Mr. Rogers. Well, but it is being taught in schools. Secretary Kerry. No. I understand. Mr. Rogers. It is being taught in the schools, and it is being taught in the marketplace and on the square and every other place, and it is being done with relish, incitement; and it seems to me if you could use this provision to sell Hamas and that side of the importance of tamping down that kind of incitement, it seems to me we would be a major step forward toward a peace agreement. Secretary Kerry. Mr. Chairman, I understand your concern, and we will address it. Mr. Rogers. Thank you, Mr. Secretary. Ms. Granger. We will now be going to members. It is a very active and involved subcommittee. I will remind the members that you have 5 minutes for your questions and that includes responses from the Secretary. If time permits, we will certainly have another round. I will now call Mr. Schiff. Mr. Schiff. Thank you, Madam Chair. Mr. Secretary, I wanted first of all thank you for the outstanding job you are doing. I don't know how you find the energy, but we are grateful that you are as good at the job as you are; and my compliments. I want to share a couple quick thoughts on Egypt and then ask you about Ukraine. I want to share a slightly different perspective than our chair, which always makes me nervous because our chair is outstanding, and when we disagree, it is because I made a mistake, which I only find out about later. But I completely concur with what Cairo has done in terms of cracking down on terrorism within its borders as well as assisting with cracking down on smuggling into Gaza and on Hamas. I think it has been outstanding; but I am gravely concerned that they are not only going after the Muslim brotherhood, but also jailing the secular opposition, jailing journalists, embarking on a campaign of deifying the new military leader; and it looks like we may be returning to the past, going back to another military government. And I think whither Egypt goes, the Arabs spring and the hopes for democracy in the Arab world go. And much as we want a relationship with Egypt and much as we don't like the Egyptians turning to our Russian, I can't say friends at the moment, nonetheless, I think that we have to make clear our strong support for democracy in the Arab world and Cairo's central role in that and the concerns that we have they are deviating from that path. Only tiny Tunisia is a ray of light at the moment. So I would urge caution and away from alacrity in terms of assistance. I would rather be supporting Egypt in their democracy building institutions than taking any actions that will be viewed not only by Egypt, but by others in the region as condoning a crackdown. It would be a return to a policy of supporting authoritarian regimes that are friendly to usrather than the democratic aspirations of their people. On Ukraine, I don't envy your job. Mr. Lavrov tells you they won't violate the territorial integrity of the Ukraine, and then they do. Mr. Putin says they don't have troops in Russia, and they do. They both say that they are there to protect the Russian population which is under no threat. It is clear they are going forward with a referendum and probably annexation under the barrel of a gun and that more sanctions are going to be necessary. I think it is going to be vital to impose real costs beyond the first round that the President has announced after Georgia and now Crimea. Can you share with us a little of your thoughts on what the sanction options may be, and I know you want to carefully calibrate them and continue to offer an exit ramp; but it looks like the Russians have no interest in heading to the exits and that further costs will have been to be imposed; and if you could share a few thoughts on what that might look like and whether our European partners are willing to undertake them with us, considering it will have a bigger impact on their economies than ours. Secretary Kerry. Thank you, Congressman Schiff, and thank you for your generous comments. On Egypt, our best source of leverage with Egypt really has been and remains the international legitimacy that is provided by the longstanding relationship with the United States and the realities, the practical applications that come from the military-to-military relationship and our ability to act as a convener on their behalf if they are doing things that are constructive and moving down the road to democracy, our ability to bring business in the global community to the table in order to help them economically. We are not exactly leveraging ourselves in terms of our aid. The UAE and Saudi Arabia have committed to some $13 billion. As you know, I talked at length with chairwoman last year about how much we could take, and I think I took $195 million; and that is all we released. We had the power to release more, but I wasn't comfortable with what I heard and now borne out by facts, so I didn't release the additional amount, which I am very grateful to the chairwoman for granting us the authority to do had we thought it was appropriate. I didn't think it was appropriate. But $195 million versus $13 billion. So it is not our economic assistance that is our lever. It is this relationship, and I think it is important for us to leverage change there. We have spoken out forcefully, publicly, and individually to members of the government about arrests, about the young activists, about one of our employees, other people. And that is why I said to the chairwoman a little while ago, I am waiting to see a couple things I am hopeful can happen. I am not going to go in with any specificity except to say that we all share those concerns. President Obama has been very clear about the unacceptability of that move. But there is a delicate balance here. I mean, I am not excusing a delicate balance with respect to any of those things. Don't mistake that; but at the same time, they are trying to establish stability against violent acts that are purposeful to disrupt the economy, purposeful to go after tourists, purposeful to, you know, undo their ability to stabilize the situation; and it is this very complicated chicken-and-egg kind of vicious circle where you have got to get the stability to begin to attract the capital, to begin to attract the tourists; and if you can't do that, and the politics stay in turmoil, it is harder to make it work, and people who are keeping the politics in turmoil know that, so you get in a trap. And the question is where and how do you sort of break out of that. Hopefully through good politics. Hopefully through the election, through the reforms, through the inclusivity, through the respect for freedom of the press, through the respect for the right to protest; and that will bring people together sufficiently that where there is real terrorist violence, et cetera, people can distinguish between the appropriate level of law enforcement against that versus the system that is working in other respects. That is our hope, and that is what we are trying to help structure. I know the light is flashing. I will just go very quickly on Ukraine. I am not going to go into all of the sanctions. We have been pretty explicit about the visa sanctions, banking sanctions, targeted business sanctions, individual kinds of sanctions. I don't want to go into all of the detail except to say this: It can get ugly fast if the wrong choices are made, and it can get ugly in multiple directions. So our hope is that, indeed, there is a way to have a reasonable outcome here. I will not be quite so definitive as you have been that it is clear they will "annex" Crimea. They may well, but they may have the referendum, have the vote and not move in the Duma to do the other things. Or now I hear talk about the potential of secession as an alternative and so forth. That obviously, in our judgment, would be contrary to the constitution of Ukraine and an illegal act; and I am not sure that it would be recognized under those circumstances. So there are a lot of variants here, which is why it is urgent that we have this conversation with the Russians and try to figure out a way forward. We have exchanged some thoughts. We haven't had a meeting of the minds on that, but we have agreed to try to find a way through the thoughts as exchanged to see if there isn't some way to find a reasonable way forward, and we will make the best efforts to do that. We have Prime Minister Yatsenuk, he will be here today. I will be meeting with him after this hearing, and then he will be meeting at the White House; and we will have a better sense from Ukrainians, who, after all, really are the ones who have the choice here. Not us. It is what do they feel is acceptable, and what do they feel is the way forward, and we will talk with them about that. Ms. Granger. Thank you. Mr. Wolf. Mr. Wolf. Thank you, Madam Chair. Mr. Secretary, thank you for your service; and, every time I see you in the paper, your time away from your family, so I want to thank you for your service in the Senate but also your service here. I think you are really working hard. You probably have the toughest, toughest, toughest job. I have two questions. You really don't even have to answer them because I would like you to think about them rather than having an answer that gets a story and nothing happens. The first question is on Sudan. You know more about Sudan frankly than I think anybody else. You know more about Sudan than I know about it. I remember once you were over on the House floor and I came up to thank you. I think you spent a whole week there that one time. I had written a letter. I would like you to just think about bringing in the Bush Library and President Bush to work under you and under President Obama. Salva Kiir still wears the cowboy hat that President Bush gave him. There was a quote whereby the South Sudanese Ambassador in Washington welcomed the idea saying, "When you have a deadlock, you need someone to break the ice and bring the people together." If you just think about bringing in the Bush Library or bringing in President Bush, the same way that President Obama brought in President Bush and Clinton on Haiti, because there is so much going on in the Department, and I know President Bush wouldn't engage unless you said you wanted him to and unless the President said he wants him to. I think you can make a big difference. The second question, and, again, you don't have to answer this. I just want you to think about it. I was the author several years ago and this committee of the Iraq Study Group, the Baker-Hamilton Commission. I think they interviewed you, I read during the process. And a group of us, Mr. Schiff was one, Anna Eshoo and a group of others sent a letter asking would you engage with the Atlantic Council and/or maybe the U.S. Institute For Peace, which has been funded by this committee to look at, maybe let's call it a Syrian study group to work under you. Secretary Rice gave approval of the Iraq Study Group because you can't contract foreign policy out to an independent group. But working with you or working with Secretary Burns, who is a great guy, and bring in the best minds, bipartisan, take 3 months, people that you like, people that can come together, but with the Iraq Study Group when you had Baker and Hamilton coming together. So there are two questions to think about. You don't have to answer it. I'm not going to put you on the spot. Secretary Kerry. I appreciate that. Mr. Wolf. On Sudan to bring in the Bush Library for reconciliation, for economic development, for a lot of things, working for--let me make it clear, not freelancing; working under you and President Obama, and would you consider the Atlantic Council and/or the U.S. Institute For Peace, or if you get a better group, to bring them in to do the same thing that was done on the Iraq Study Group to see if we canWe are reaching a third year, if we can do something that would help you and us. Thank you. Secretary Kerry. Good thoughts. I appreciate them both. The only thing I would quickly say to you is that I gave Salva Kiir several cowboy hats because I thought he ought to have a Democrat hat, too; and on some days he wears that, one I am glad to say. Ms. Granger. Thank you. Ms. Lee. Ms. Lee. Thank you, Mr. Secretary. It is always good to see you. Thank you for being here. Also, let me just, once again, acknowledge your tremendous commitment, focus, and hard work at the State Department as Secretary as well as those of your very dedicated staff. I am glad you mentioned, and thank you for mentioning PEPFAR and the global fund and the real-life saving and life- affirming value of United States taxpayer dollar contributions. As you know, it was the Congressional Black Caucus here on the House side which led this effort, and we certainly never could have gotten the legislation through the Senate had it not been for your bold and brilliant leadership as well as that of Senator Frist and Senator Helms. I always remind the public that it was an example of the success of bipartisan and bicameral relationships, agreements and really a focus on the fact that we should come together to save lives and to work for an AIDS-free generation, just as this subcommittee and committee continues to do. I am concerned, however, that PEPFAR really has been flat funded for a couple of years in your budget and that the global fund has been cut now by $300 million. I am worried that possible donor nations will not cede a real incentive to make their hopefully significant contributions to the global fund if we are cutting our contribution. And so I would like to hear some assessment of how you see that moving forward because we are at a critical and defining moment, as youknow, in the fight for an AIDS-free generation. And secondly let me just mention the whole issue of Uganda and the LGBT laws that we are seeing in Africa and around the world. I understand that your administration is doing a review of our relationship with Uganda in light of the recent bill; but I want you to, or at least I am encouraging you to look at other countries and review other countries where we have significant global and HIV funding which also have similar laws on the books, and you will be receiving a letter from members of the Congressional Black Caucus very shortly on this. Secretary Kerry. Thank you very much, Congresswoman. I really appreciate your passionate support for this. We wouldn't be where we are today without you and a lot of other folks who supported it. Let me just say very quickly--first of all, why don't I answer the Uganda piece first. I spoke to President Museveni recently, and we had a conversation about this. We talked to him several times before the signing. We obviously opposed the signing of the bill, and he agreed to have some of our experts come over and meet with him and sit with him and listen to them and sort of reopen it; and so we are going to continue that conversation with him. But during that process, I learned that there are 80 countries that have similar types of laws, restrictions on the books, 80 countries, and we deal with all of them. So we have a big task. We are doing what you just suggested about looking at the others and figuring out the road ahead, and we have talked about it with our mission chiefs in the last few days. We need to start reaching out, and we are going to. This will be a distinct platform of our approach with respect to rights, human rights, and the LGBT community globally will know that the United States is going to really actively, proactively, reach out and talk to those countries. With respect to the global fund, we have $1.38 billion in the global fund allocation, our request. And that honors the President's commitment to provide $1 for every $2 that are going to be provided here, and what we feel is that in the 2015 request, we are more than fully funding our pledge based on the current commitments of other countries, and we think it is adequate to the task at this point in time. So the President's Opportunity, Growth and Security Initiative, if enacted, would provide an additional $300 million for the global fund. So this bounces back to you all as to whether or not we can get that enacted, and then we could plus it up a little bit more, but I do believe we will be able to meet the targets and meet our goals. Ms. Granger. Thank you. Mr. Diaz-Balart. Mr. Diaz-Balart. Thank you very much, Madam Chairwoman and Mr. Secretary again. Always good to see you, sir. So many issues in the world, but I would like to bring it closer to home, to our hemisphere. Let me just kind of toss three issues out there, and I will throw some specific questions if possible. And the one is, when the President talked about in his first inaugural about those who cling to power through corruption and deceit, exact words, but that he would extend a hand if they are willing to unclench their fists, and yet we see in some areas in our hemisphere that that fist has been clenched even further. Let me just give you a couple examples. In Cuba, that regime is still holding Alan Gross. He has now been serving prison time for 4 years. As we know, arrests are up, numbers of repression and arrests have increased; and recently even a ship of arms going to North Korea was intercepted in Panama. What specific consequences will the Cuban regime have to deal with because of the increased repression, because of Alan Gross's continued arrest, and now with this new issue of them even shipping arms to North Korea, point number one? Point number two, coincidentally it was a month ago that the people, the students in Venezuela hit the streets protesting the lack of democracy and freedom and the increases of corruption in Venezuela. They have been confronted, as you have all seen in YouTube videos by arrests, by beatings, even by the way by death, by killing. The press has been thrown out of Venezuela and censored including stations like NTN-24 that is based out of both Colombia and the United States. In Ukraine, you mentioned some things like denying visas. A number of us sent you a letter asking if you could, and the administration could do that, unilaterally deny visas to the members of the Venezuelan regime, blocking property or freezing assets and prohibiting financial transactions to these human rights abusers. Are you going to be looking at doing something quick to confront those who are violating the rights and the human rights and arresting and beating the students in the streets; and also what specific things is the administration going to be looking at to help those who are peacefully trying to recover their democracy. And lastly, in your confirmation hearing, Mr. Secretary, you pledged, and I was glad to hear that, that you would, quote, reiterate our serious concern about Argentina's failure to fulfill its private debt obligations to U.S. Creditors. I don't have to tell this committee about Argentina. They have worked with Iran to, Iran's responsibility for the 1994 bombing at the Jewish Center in the Buenos Aires. They have undermined global sanctions against Iran by expanding bilateral trade with Iran tenfold in 5 years. I can go on and on, and yet the Department of State has consistently filed amicus briefs frankly siding with Argentina when they have been in court on the issue of precisely them not paying their debtors. That has been rebuffed by every court. Their lawyers, Argentina's lawyers have actually said that they don't care what court is going to do. They have criticized the U.S. courts as being just like Iran. So here is the specific question: Will the Department of State once again file an amicus brief if asked to do so siding with Argentina, which is frankly hard to believe, but that is what has happened, and there is a bunch of reasons why they say they need to do this; but the courts have been very clear that that is not accurate. Or will you, as you said--I know you are concerned about them, Mr. Secretary, too, and I thank you for that. Will at least the Department of State not side with Argentina in the courts if, in fact, they are asked to file an amicus brief? Secretary Kerry. Well, I can just answer that very quickly. The answer is no. We are not going to. Mr. Diaz-Balart. Thank you, sir. Secretary Kerry. And that is clear. But in addition to that, we have urged Argentina to repay its debts to the U.S. Government and to engage with creditors, public and private. I will continue to do everything that I can and the Department can do in order to recover those funds, some $600 million in money owed to the United States. With our urging Argentina has taken some positive steps. In October, they settled a long- running investment dispute with three U.S. companies, and it implemented, in January of this year, it implemented an improved inflation index in order to address deficiencies in its IMF reporting and so forth. But we continue to urge them to fulfill their global international responsibilities, and we will do that; and as I said---- Mr. Diaz-Balart. And thank you, Mr. Secretary, for your very direct answer. And I appreciate that. Now the other two issues---- Secretary Kerry. Venezuela and Cuba, I have been meeting repeatedly, particularly in the last few months on the Alan Gross issue. In fact, I met with his family just a couple of weeks ago. And I am not going to go into it here, but I will tell you that we are very focused on a couple of possibilities of how we might try to approach that. We really want to get him back because obviously we don't think he is that well, and he is wrongly imprisoned as far as we are concerned obviously. So it is a major priority for us and the White House likewise. The White House has been very involved working together in initiatives to try to do this. We hit a stone wall on a couple, but we are continuing to try to do that; and I have a couple of ideas that I hope could work. We will see what happens. Cuba continues to confound, and there are continued problems there. The Obama administration is prepared to try to have a different policy, but we haven't seen the indicators that merit that at this point in time. There are some things that we are doing that we think help in terms of remittances, the other kinds of cultural exchange and so forth. But at the moment, you are correct; there are serious problems about how the people are treated there and what the nature of that regime is. With respect to Venezuela, we have urged the release--we have spoken out. I spent, when I was in at the OAS meeting, I purposely reached out to Foreign Minister Jaua. What was supposed to be a 10-minute meeting went for 45 minutes. We made it clear that we want to try to engage in a normal relationship if they are prepared to. But unfortunately they have been more prone to simply want to use us as a political card in their domestic efforts; and I think that has come home to roost frankly now. That is part of what is going on there, huge economic problems, unbelievable stratification within their society, polarization, young people looking for opportunity, and it is not unlike the story in many parts of the world. We are prepared, we have urged President Maduro to use the powers of his presidency to bring peace and justice and tranquility and opportunity to the people of his country. And we have not engaged in any of these kinds of activities that he has on occasion alleged; and we believe it is time for the OAS, the regional partners, other international organizations, to assume a greater role frankly in urging the Venezuelan government to refrain from demonizing opponents, to allow for peaceful protest, and to move towards a meaningful dialogue with the opposition. That is the only way the issues are going to be resolved. Not with increased violence. Even today there are stories of the potential of that increased violence, and we would hope they would turn away from that. Ms. Granger. Thank you. Ms. Wasserman Schultz. Ms. Wasserman Schultz. Thank you, Madam Chair. Secretary, welcome. It is good to see you. I want to ask you three questions quickly so I can give you the bulk of my 5 minutes to respond. I am going to follow-up on Mr. Diaz-Balart's question of you on Venezuela, but I do want to acknowledge and ask you about any activities surrounding the disappearance now again of Robert Levinson, who last week sadly his family acknowledged the seventh year of anguish with his imprisonment. He is still missing, and I just urge you to do all you can to find him and ensure his safe return to the United States because it has gone on for far too long. On Venezuela specifically, my home town is Weston, which we affectionately like to refer to as West Venezuela; and it is home to the second largest Venezuelan population behind Doral in the United States. Can you discuss specifically, and recognizing that Maduro's regime is trying to use the United States as a distraction and an excuse for his own failings, his own oppression, and his own violation of Democratic principles, and also recognizing that the harm that could come to people who can least afford it from sanctions is part of the angst that is derived from the opposition actually. There are some members of the opposition in Venezuela who are very concerned about the possibility of sanctions because of the disproportionate impact that it would have on people who are already poverty stricken and deprived by this regime. But this is obviously a very tragic and difficult situation. Maduro is oppressing his people. There is a tremendous amount of violence, and we expect it to get worse. So what actions specifically are we engaging in beyond discussions with the OAS and urging them to engage so that we can be sure that we can continue to be the moral leader, not just in our hemisphere, but in the world. And then lastly, I am deeply concerned about the complete zero out of funds for the Global Agriculture and Security Program. I know that there is a request tied to the Opportunity, Growth and Security Initiative, but we don't have any guarantee that Congress will agree to appropriate those funds, and given that that proposal goes over the cap and has offsets that will likely be controversial, how is that going to impact our Thousand Days Initiative that has been in place since 2010. Global food and security obviously is one of the most tremendous challenges that we face worldwide. Secretary Kerry. Well, Congresswoman, I want to get back to you on the global agriculture and global food piece and give you more detailed answers as to how we can address that. The food security issue, you are absolutely correct, is an enormously challenging one. The bottom line is, you know, some of these budget choices are very, very tough; and that is the reality and tradeoffs. We believe we can make up for it in other ways, but let me back to you in details of it. On the sanctions issue and the challenge of Venezuela, let me just say this: We have been in touch with surrounding neighboring countries. We are talking with them about trying to get some kind of initiative with them. They are not listening to us particularly, obviously; and we are hopeful that peer pressure, the hemisphere and the near neighbors are going to be the people who would have the greatest impact on them, but we are prepared if, we need to, to invoke the Inter-American Democratic Charter and the OAS and engage in serious ways with, as you said, sanctions otherwise. Their economy is fragile enough right now that one might have pause about doing that for the reasons you have described. My hope is, I think the best hope right now, is that the efforts of the neighboring countries who are deeply concerned about what is happening and its impact on the region may, may, be able to encourage the kind of dialogue that could actually pave the way forward. We have become an excuse. We are a card they play, as you say; and I regret that because we very much opened up and reached out in an effort to say it doesn't have to be this way and to offer an alternative path. We share the same concerns. We want fair distribution of the resources. We want opportunity, economic opportunity. We want to provide the health care and education and the other things that their young people are screaming for. And we believe that we can help. But up until now in the tradition of Chavez, who played that card so forcefully for years, Maduro, who is not Chavez and who has his own internal challenges, has tried to replicate it and to no avail frankly, but it hasn't made it easy for us to be able to have the impact we would like to have. On Robert Levinson, we are--I have personally raised this in my meetings with Foreign Minister of Iran, Zarif, and we have raised it at the highest levels. It continues to be raised in all of our engagements, and we have met with them. We are doing everything possible. Again, there are three people being held, we believe, in Iran; and they are all three on the table, but we just have not had any positive return on that effort. The Swiss have been engaged with us. We have reached out to the Swiss. They are our representative with respect to that issue in Iran, and they also have not been able to get positive response on it. So there are some serious questions surrounding that disappearance. I think you know that. It is not cut and dry, and we are trying to get to the bottom of it. Ms. Granger. Thank you. We have planned this hearing to end at 12:30. The Secretary has agreed to stay 10 more minutes. We have to make sure we hear from everyone. So we will now go to Mr. Dent. Mr. Dent. Thank you, Madam Chairwoman. Secretary Kerry. If you would like, just to speed matters up, I will listen to the questions and I can get back to you. My problem is we have Prime Minister Yatsenyuk coming in, so otherwise I would stay even longer. But I can take the questions and get back to you. Mr. Dent. Sure. Thanks, Mr. Secretary, for being here today. You mentioned in your opening remarks that economic policy is foreign policy, or good economic foreign policy assists foreign policy. I certainly agree with those comments. We obviously have pending free trade agreements with TTIP and TPP, the USCU and the Pacific agreement that would certainly cement relations between our friendly nations and economic relations and it would certainly bring about greater national security benefits I think to all involved. In recent weeks, discussion regarding the expedited approval of lifting tight restrictions U.S. Exports of liquefied natural gas, LNG, to loosen the grip Russia has on Ukraine's energy consumption. Is the expedited approval of the LNG exports an approach the administration is taking seriously as this crisis continues to unfold? I did speak with our ambassador to Ukraine last night at the reception over at State and talked about--I know the Ukrainians and many of our friends and allies in Europe are very, very concerned about that issue, and they want to become--they want to diversify their supply, get themselves closer to us. Is the administration taking that issue seriously, and are there specific issues that may make expediting these LNG exports difficult? Those are some of the questions I really wanted to lay out as well as the Keystone pipeline while we are at it, too. Let's cement our relations with our good friends to the north. There are clearly benefits to that. If you would respond, I would appreciate it. Secretary Kerry. Sure. Just very quickly on Keystone, it is my responsibility now to deliver an advisory of judgment to the President with respect to the national interests. I am engaged in that process, and, you know, I am just going to do my due diligence, and will report when it is appropriate. With respect to the LNG, yes, of course the administration is very, very serious about that, and, in fact, to date, Department of Energy who has jurisdiction over the authority over LNG exports has conditionally approved some six LNG licenses for export, about 8.5 billion cubic feet per day that could be exported to both free trade and non-free trade countries such as Europe. That would include Ukraine. The problem is that the first project, I believe, is not expected to come on-line until sometime in 2015, so it is not going to address, if Russia cuts off the gas, we understand they have a certain amount of reserves. There will be some capacity to be able to weather that, but this is not going to have a direct impact on that. It is not going to be able to. Mr. Dent. The only thing I would add is that--this is a long-term proposition. I do understand that, but I have heard both from the Japanese Prime Minister Abe, Chancellor Merkel and others, they very much want to diversify their supply. They very much want to get American energy. Secretary Kerry. Believe me, there are a lot of takers and I have heard this in many meetings I have had around the world, including China, elsewhere, where there are voraciousappetites. There is a counter point of view expressed by some about the effect on the price, price of oil, as well as price of gas, if you are exporting very significant amounts and what that might mean for American consumer in terms of price, so I don't know what that break point is personally. Mr. Dent. I understand we will be producing more than we can consume just as we do with many commodities like corn. We produce more corn than we consume and we export it, and we would never tell the farmers to not export corn. Secretary Kerry. And I believe we should be, Congressman. I think we should do some, but I think there is a legitimate question to figure out where is that break point on price and what is our strategic interest, and we need to balance it. Mr. Dent. Just on another issue about Israel and Palestine; I think Mrs. Lowey mentioned that issue. In recent months, I have been looking into the vetting of grantees and subgrantees receiving U.S. funding focused on reconciliation in that region. These matters are obviously very sensitive. Do you believe that the vetting of these organizations is specific and careful enough to ensure that those organizations and the people associated with some of these organizations align with U.S. policy, and frankly U.S. Israeli policy because, as Mrs. Lowey pointed out, some of the groups receiving those funds behave in ways that we find offensive and not in our interests? Secretary Kerry. The question is whether or not the vetting is---- Mr. Dent. Yeah, some of these organizations that are receiving funding. Secretary Kerry. I think, look, this is a new decision that I think, without going into names and things, that was made by this particular one organization and, you know, I think under those circumstances not appropriate, but so it is a first instance for me. I think we have to take a look at it. I have not been asked, nor have I reviewed the overall vetting process with respect to all the others. If there is a reason to, I will evaluate it; but I am not sure that that is necessary. Ms. Granger. Thank you. Mr. Cuellar. Mr. Cuellar. Thank you, Madam Chair, for holding this committee hearing. Mr. Secretary, two questions. The first question has to do with some language that Chairman Rogers and Nita Lowey helped us put into the appropriation bill this last year that calls for the head of each department and agency, as they prepare their funding request, to directly link them to their performance measures under GPRA. So this is the first time we have done that. I would ask your folks to look at that. The problem is that when you look at the performance measures that you all have, and I don't want to embarrass anybody, but I would ask that redo those performance measures because if we put in $1 of taxpayers' dollars, we expect to be able to measure that $1 that we gave you; and with all due respect, the measures that you have there don't tell us that at all. So I would ask you just to have your folks to take a look at that. Number two, I agree also with Chairwoman Granger, your budget, your proposal, is basically the same, but I think you substituted a lot of the bipartisan work that we did in this subcommittee for some of the agency's or the administration's priorities. For example, the Republic of Mexico, as you know I live on the border, and I breathe and I drink the water. I am very familiar with it. You know, we always complained about what is happening across the river and the drug cartels and as you know, they just got the godfather of all drug dealers across the world recently; but the cuts that you all did and without going to specific cuts, you all went down and made cuts to a neighbor that has a large impact. I mean, a large amount of the cocaine that comes into the U.S. will come in through that country. And with all that, I would ask you again to look at those cuts and ask you to reconsider; and I am sure the subcommittee in a bipartisan way will look at those cuts. I understand, Mexico is going through a great economic transformation, energy, education, telecommunication, finance reform, everything that President Nieto has been done. But on the security part, I just have a concern as we spend so much money on the U.S. side that I would hope to spend a little bit of money on the other side; and the more we stop on the Mexico side, the less of a burden it will be. I would ask you, and I know we are out of time and I want to be considerate. Secretary Kerry. You need to be helpful on the time. I appreciate it. I will just take 15 seconds to answer your question. On Mexico, our request specifically reflects money in the pipeline, and it does not, in fact, translate into a reduction in any priority or effort. The same is true for Colombia. Colombia has an increased capacity to be able to do the things we have worked for in planning Colombia and the same in Mexico for the Merida plan. So we feel very much as if there is adequate funding there; and we have the resources in the budget because of the pipeline to be able to do the things that we need to do. We are going to draw down on it. It is going to flatten out, and we won't have that ability next year. So this is the problem as we begin to draw on those---- Mr. Cuellar. Right, and I am going to give up my time to save, but if you could send maybe Roberta Jacobson. She understands Mexico very well. I would love tosit down because I slightly disagree with your statements on that, but I would be happy to---- Secretary Kerry. Well, let's work it through. I am happy to sit with all my smart people sitting back here. Mr. Cuellar. All right. Include Roberta Jacobson. I yield back the balance of my time. Ms. Granger. Thank you. Mr. Crenshaw. Mr. Crenshaw. Thank you, Madam Chairwoman; and thank you, Mr. Secretary, for being here today. I wanted to give you the opportunity to touch on a couple of things that I think are good news in the midst of all the problems that we see in the world. You talked in your opening statement a lot about foreign assistance, and you talked about it in the context of national security, which I think a lot of times people lose sight of. When we think about national security, we think about our Defense Department, and we spend a lot of money to have the best-trained, best-equipped military in the world; but we don't often talk about diplomacy or development as you touched on; and I think that development is a key component to our long- term national security; but I think, like any other spending, we have to do it efficiently, and we have to do it effectively; and I think one of the best examples of smart development foreign assistance is through what we know as the Millennium Challenge Corporation. And as you know, when we assist emerging nations, we ask them to do well in certain areas like rule of law, human rights, things like that; and then it is a contract. And one of the things that I was disappointed in a little bit over the years, because this is the 10th year of the Millennium Challenge contracts, the 10-year anniversary, is that the funding has been reduced, I think, disproportionately. It is a very efficient use of taxpayers' dollars to offer assistance. I was encouraged to see in the budget proposed this year that there is an increase in that spending; and I think that is positive. And so I assume that the administration believes, and you believe, that the Millennium Challenge Corporation is working well, and I wondered if you wanted to just comment on that, on one or two successes that you have seen and your view on that forum of foreign assistance. Secretary Kerry. Well, I have been particularly interested in the MCC, and I sit on the board; as you know, I chair the board. And I have had several meetings now. We have been able to review some 27 compacts that we have signed and 24 threshold programs. We have a tension in our debates about MCC about, you know, second rounds and third rounds because there is always a tension between trying to excite an initial investment and then get them out on their own, you know, self sufficient, versus that moment where you have got to kind of refinance and keep them going a little longer in order to do it. But I think we have an 11 percent increase in the funding this year as you know, I think. We basically have $1 billion out of 20-some total that we put into the direct development programs through AID, et cetera. I would like to see that ratio grow personally. I think it ought to be a little larger. Now, there is a tension here. MCC has a very specific set of metrics, and it is an evidence-based approach, much more along more traditional business investment, not just pure development lines. With a theory that we want to try to encourage really good governance, good democratic, all of the things, but it takes--let me phrase this carefully. It is really geared to engage at a different level of development than some other moneys that we expend through USAID. I believe that is necessary. There are different stages of development, and different countries can embrace an MCC and deal with it effectively and translate its metrics into better governance, better performance. Other countries just aren't there, and they are not going to be there, but it doesn't mean that we don't have an interest in making certain that they can get there and that they develop. So we may be more involved in education, or more involved in building an energy project or doing something in that initial stage. And the question is sort of what is the appropriate balance between this? You know, is 1 billion enough to be putting into that, particularly when you have reduced assets and so forth. But I think that, you know, you look at Power Africa as an example. We have a major initiative going where we are incentivizing change in three partner countries involved in that. It is very effective, and it is going to bring major, you know, power capacity, increase electricity, power capacity to those countries. So all in all, I would summarize it by saying that I hope we can increase it to some degree. I think it is a terrific model, but it is not a model that can be applied everywhere. And we have to work off that as a basis. Ms. Granger. I will call on Mr. Rooney and Mr. Yoder, and if you both take 5 minutes, we will be respectful of the Secretary's time. Mr. Rooney. Thank you, Madam Chairwoman. Mr. Secretary, I know that you are aware there will be delegations from all the parties in northern Ireland coming to Washington; and one of the things that, we, I think, as a country and administrations from the Clinton administration on forward can take the knowledge knowing that there has been some positive developments with the peace process in northern Ireland. And with that being said, Mr. Richard Haass testified before the Committee on Foreign Affairs and I think last week submitted a report talking about some developments where there may be some backtracking. I hope that that is not true, but with that being said, the administration has not put forward the international fund for Ireland budget request this year, as he hasn't for the last couple years, and maybe that is for good reason because of the success stories in the north. But being that it is one of the success stories that this country has been able to participate in since the Clinton administration on up, do you feel that that money, it may be time to revisit whether or not we don't backtrack and lose the gains that we have made and that that money is something that we should revisit spending again in the current year or future years? Secretary Kerry. That is very possible. There has been unfortunately increased tension and some partisan events that have been unfortunate that have been a reflection of times we thought we had that completely left behind and our hope is with the meetings here and so forth, to renew everybody's commitment and sense of that. So we haven't lost focus on it, but I do think there was a feeling that things were moving and there was a level of success. We have to evaluate that, and I am perfectly ready, based on the situation to engage in that evaluation. Mr. Rooney. Thank you. Ms. Granger. Thank you. Mr. Yoder. Mr. Yoder. Thank you, Madam Chair. Mr. Secretary, we appreciate your testimony today. It is always a wonderful dialogue to talk about these issue around the globe and this committee has an important rule to ensure that we scrutinize funding and that we are spending American dollars wisely. As I am sure you know many of our constituents are worried about that fact. And so maybe to wrap things up here, I have more of a global question for you. The request is $46.2 billion, and I think my constituents as all of ours do, have questions related to what exactly our foreign policy is today. As I am sure you are aware, as every administration, this administration comes under some criticism for its foreign policy; and I wanted to give you a chance to respond to some of the concerns that are out there that I hear from my constituents that I am sure you have heard from as well. I would start with a little bit of an undercurrent of what was Ronald Reagan's foreign policy of peace through strength, and that weakness invites aggression. I would like to highlight a few concerns that have been raised by constituents and others throughout the country, certainly in Syria where there is a feeling that we painted ourselves into a corner and we allowed Russia to become a major player in the resolution there. Concerns related to the Iranian sanctions relief and whether we are being essentially played by Iran throughout this whole process. Lingering issues related to the murder of our ambassador in Benghazi. Certainly today, the Russian invasion into Ukraine. Russia sailing a ship into a harbor in Cuba, a spy ship, 90 miles off of the American border. Some people see this as a retreat and that you spoke, I think very passionately, about a vacuum that occurs in the world if the United States doesn't play a significant role. And so I would like to ask you, you know, we are familiar with what the Bush doctrine was, we are familiar with what other President's foreign policy is. How would of categorize American foreign policy today in comparison to previous administrations and in relation to some of the concerns that have been brought up across the country. And then specifically, I might just ask do you feel that the reset of relations with Putin has been effective? Do you think that the removal of missile defense from eastern Europe unilaterally, was that concession useful and would we feel that that was smart given today's relation with Russia. And then how do you look at this in context with the reduction in military spending under the President's budget, particularly given the administration's belief that government spending is critical to stimulus in the economy and that austerity is bad. Why austerity just in the military and really nowhere else at this point? And what message does that send in your role as Secretary of State, as we reduce military spending to pre World War II levels, and essentially, in relation to all those issues, what is the American foreign policy as you see it? And then finally if you have a second, speak to the Iranian sanctions issue. Secretary Kerry. Okay. We will do that in 2 minutes or 10? Mr. Yoder. As much time as the chair would allot. Secretary Kerry. I love it, and I am delighted to have a chance to talk about those things because there is a narrative out there that I think is completely without any basis; and I love the opportunity of defending, not just defending, but of, you know, making clear what the President's priorities are and what our policy is. Quite simply put, we are making America stronger, at home and abroad, and making America safer by projecting American economic interests as well as by standing up for and projecting our values, which also support our interests and by taking on terror before it comes to our shores; and we are fighting terrorism in many, many different venues, in many different ways, and that is a longer conversation; but let me go specifically to this juxtaposition with, let's say Russia or reset or whatever you want to call it. The reset with Russia was not just a pushing of the button and saying, oh, everything is going to be terrific. The reset was an effort to find those things we could cooperate on, understanding of course, that with Russia, we were going to have major philosophical and other kinds of interest differences. So we have been able to find cooperation in important things, Afghanistan, on nuclear weapons, the START reduction, on the CW program in Syria; and. I might say, Madam Chairwoman, you asked me in the very beginning of this hearing about the time frame on that. The time frame originally in the agreement is until June. We are 30 percent out now. 30 percent is being moved out, and we are now on a 65-day program, which I believe could be reduced to 35 days. And we are pushing very hard with OPCW and others to get it out. So I want to take advantage of making that question. But in addition to CW with Syria, Iran, P5 plus 1, Russia has been an important cooperative partner in the effort to get the agreement that we got. Now, you mentioned that agreement and said are we being played by Iran. Please, we are seeing Iran's 20 percent uranium enrichment reduced to zero. We are seeing Iran frozen in its 3.5 percent level of uranium stockpile. No new centrifuges have been put in place except for a replacement. No additional numbers over the number that we began with when we began 2 months ago. We have seen inspectors go into Fordow. We had no inspectors at all in Fordow. We have inspectors at Natanz. We didn't have them there. We have inspectors not as frequently as the other two, but sufficiently in Iraq, in the plutonium reactor. They are not able to complete the plutonium reactor. We have cradle to grave tracking of production. We have the right to go into their storage facilities for centrifuges. In effect, Iran's program is being rolled back from where it was, and there is no way to draw any other conclusion but that the world, Israel, United Arab Emirates, Saudi Arabia, the region, are safer because of that first step agreement that has been put in place. Now we are not sitting hearing and telling you automatically Iran is going to make the judgment to conclude the deal. I can't tell you that. President Obama and I share serious reservations about whether or not they will, in fact, make the hard choices that they need to in order to satisfy the world fully and completely that this is a peaceful program. But the bottom line is we are putting that to test and earning the credibility of the world to know that if they don't and we have to do something else, we will have exhausted every possibility to prove to the world that we were willing to put them to that test. I think these are very important things in the conduct of foreign policy and in the potential of the use of force or any choices that you have to make. So we are not being played. We are doing what good diplomacy requires, and we have done it in a way that expands the so-called breakout time from what was about 2 months to significantly more, and it could grow, and if we can get a final agreement, it will be even larger. So I just don't buy this notion. I don't think that--you know, I don't want to get into, particularly 2 days before I am about to sit down with Lavrov, but I think Russia has challenges of its own, and I am not sure that they need to have the kind of economic constraints that may be following depending on the decisions they make. But I also want to say at the same time we recognize Russia has interests in Crimea. You know, Ukraine was part of Russia for centuries. Khrushchev gave it to Ukraine, he came from Ukraine, but there are other reasons that he did it, and the Russian religion comes from the eastern part of Ukraine. There are battles for Russia's freedom that were fought in the eastern Ukraine. There is a long linkage there, and we need to approach this in ways that we get Russia to be able to respect the sovereignty of the country, the integrity of international law, the rights of Ukrainian people to make decisions for themselves even as Russian speakers and Russia's interests can be appropriately met. That is really the challenge here, and I don't think that the United States--I think the United States is playing a critical role in helping to perhaps bring that about, and I can tell you all over the world, my friend, I will tell you right now, we are playing a critical role with respect to North Korea, we are playing a critical role with respect to the relationship between China, Japan, Republic of Korea, and the Republic of Korea and Japan. We are central to our engagement with ASEAN to maintaining stability and freedom of navigation in the South China Sea. We are engaged deeply in the Middle East obviously with Syria, with Iran, with Middle East peace process, with Egypt, with the others. We are engaged in the Maghreb, we are helping Tunisia, we are working on Libya. I just came from a conference where we are working with Libya for its hopeful stability and laid out a plan with more than 40 other nations in order to be able to help Libya. We are working on the transition in Afghanistan. I negotiated with Karzai that BSA. He is not seeking to change the BSA, but he is refusing to sign it until or unless there is some effort on the peace process which we don't control. Each of the candidates for President of Afghanistan have said they will sign it. So I believe it will be signed, and I believe the United States is in Africa where we have a young leadership program, we are engaged with Power Africa, where Russ Feingold just helped negotiate a special envoy, disarming of M-23 and an effort in the Great Lakes where we have been involved in helping to provide for a ceasefire/semi-truce in South Sudan, where we are engaged with the Arctic and the Arctic Nations, we will be assuming that chairmanship in a year. I can run a long list of economic things just alone. And TTIP, the Transatlantic Trade and Investment Partnership, and the Trans-Pacific Partnership take 40 percent each of them, the world's economies, and put them into a system of trading which will benefit Americans and create jobs in every State in our country. That is what we are getting for this penny on the dollar, folks, and I have only begun to scratch the surface. So I thank you for the opportunity to. I would be happy to give you a longer answer when the light is not flashing and I am not abusing everybody else. Ms. Granger. Secretary Kerry, thank you for your timetoday, thank you for the energy and the passion that you put into the job that you do. We appreciate it very much. This concludes today's hearing, and members may submit any additional questions for the record. The Subcommittee on State, Foreign Operations, and Related Programs stands adjourned. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Tuesday, April 8, 2014. UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT WITNESS DR. RAJIV SHAH, ADMINISTRATOR, UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT Opening Statement of Chairwoman Granger Ms. Granger. The Subcommittee on State, Foreign Operations, and Related Programs will come to order. I want to welcome the Administrator of the U.S. Agency for International Development, Dr. Raj Shah. We always look forward to hearing your testimony and particularly on the fiscal year 2015 budget request for USAID. The details of the administration proposal are slowly coming in, but I already see a few troubling issues from the information I have. The administration prioritizes its initiatives at the expense of congressional priorities. For example, it is difficult to justify the proposal to reduce humanitarian accounts by 25 percent at a time when significant needs remain, particularly in Syria and Africa. USAID is doing good work to improve the health of millions of people around the world, yet there is a decrease overall for many of the lifesaving global health programs. You also propose a dramatic reduction in biodiversity programs that support important conservation activities and critical efforts to combat wildlife poaching and trafficking. I hope we can work together on these and many other budget issues. Next I want to raise some concerns about how USAID does business. Since I joined the subcommittee 5 years ago, I have heard that the United States must do more to address aid effectiveness. Of course, this is an important goal, but not when aid effectiveness is translated as providing more assistance directly to developing countries and organizations that may not have the capacity to program the funds. In many of these places, corruption is also a serious issue. I have concerns about this and other elements of your USAID Forward initiative. I question the assumption that foreign governments and local organizations are more effective implementers than U.S. organizations. I am also wary about their ability to manage U.S. taxpayer dollars. That is why the fiscal year 2014 State, Foreign Operations bill strengthened standards and requirements to ensure proper oversight. I appreciate the work we have done together to increase oversight of direct assistance to foreign governments since I began, including conditions in the fiscal year 2012 bill, and I hope we can do the same for local organizations. Dr. Shah, these are just a few of the issues I hope we will get to discuss today. I want to close by thanking you and the men and women of USAID who are committed to solving some of the most difficult global development issues around the world. All of us on this subcommittee understand and appreciate your work and their work. I will now turn to my ranking member, Mrs. Lowey, for her opening remarks. Opening Statement of Mrs. Lowey Mrs. Lowey. Welcome, Administrator Shah, and I want to thank you for your leadership and tireless work improving the lives of vulnerable people throughout the world. In deference to my chair and friend, I will be brief. Dr. Shah, you may recall my support for development assistance, yet I was disappointed to hear that the fiscal year 2015 budget request again underfunds basic education at $534 million, which is unacceptable. I expect to see a much higher level of commitment than the administration has demonstrated to date. Additionally, I am still anxiously awaiting the official budget figures for several programs, particularly family planning. As you know, family planning programs reduce maternal mortality, promote women's rights, and contribute to the stability of communities across the globe. It is impossible to achieve food security, build democratic institutions, or sustain health outcomes without basic literacy and communication skills. In my opinion, the administration routinely underfunds education, impacting the sustainability of our development dollars. I hope you will provide greater details on our family planning and education budgets. I am concerned about the reduction in the budget for drug- resistant tuberculosis. Drug-resistant TB is a highly contagious airborne disease that respects no borders, and threatens the health and safety of the United States. Why would you slash funds for TB control when reports indicate that new treatments, vaccines, and diagnostics are all necessary? Finally, the press reports from last week on the ``Cuba Twitter'' program highlight my longstanding concerns on the potential politicization of development activities that place both USAID programs and people at risk. It is important that you clarify for this committee the nature and risks of these kinds of activities. USAID should be using its resources, which are generously made available by the American people, to respond to current challenges overseas like we did with the Asian flu, HIV/AIDS, food insecurity, and so much more. I look forward to hearing your testimony and ask unanimous consent to place my full statement in the record. And I yield back. Ms. Granger. Without objection. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Ms. Granger. And thank you. We are trying to get through-- this is a good attendance, particularly when we have multiple subcommittee hearings today, and so we are trying to get through before votes. Thank you. Dr. Shah, please proceed with your opening remarks. I would strongly encourage you to summarize your remarks so we leave enough time for questions and answers. Your full written statement will be placed in the record. Opening Statement of Dr. Shah Dr. Shah. Thank you. Thank you, Madam Chairwoman and Congresswoman Lowey and members of the committee. I am very enthusiastic to be here to discuss with you President Obama's fiscal year 2015 budget request for USAID. You know, USAID's mission is very clearly to focus and partner with all types of organizations and all parts of society to help end extreme poverty and its consequences around the world and to promote resilient democratic societies. Your efforts to support USAID over the last 4 or 5 years have helped us do some extraordinary things together. You have helped us rebuild our staff by more than 1,000 people. You have helped us rebuild our budget and policy operations and to put in place a monitoring and evaluation system that allows us to be accountable and sophisticated in how we pursue our mission. Your support has enabled us to launch the U.S. Global Development Lab, which will help to elevate the role of science, technology, and innovation in helping to accelerate the goals we hope to achieve. And your approach has helped us lead around the world a series of public-private partnerships that leverage our investments with private sector resources to stretch American taxpayer dollars and get better results. This year's budget, which is presented in the context of overall fiscal constraint at the top line for the 150 account and in particular for foreign assistance given some of the major security investments that have been proposed, still maintains a commitment to core and important priorities. These include a nearly $1 billion investment in Feed the Future, which has helped to now reach 7 million farmers and is moving 12.5 million children out of a condition of being chronically hungry and helping them achieve self-sufficiency. It includes nearly $2.7 billion for child survival, which I continue to believe is the most efficient return on investment we make as the U.S. Government, when it comes to serving the needs of the world's most vulnerable. And it includes significant investments in education, water, and energy, all of which are the subject of new, comprehensive strategies that govern our work and new ways to evaluate results and report back to Congress and the American people on what their generosity is achieving. I also look forward to discussing the pressures created by three Level-3 emergencies this year--Syria, the Central African Republic, and South Sudan--and note that our teams are involved in leading global humanitarian responses in each of those settings. Given the shortness of time, I look forward to the discussion of the topics that were raised in your opening statements, and I would like to conclude just by noting that this year, I had the opportunity to present some thoughts at the National Prayer Breakfast. And I remain convinced that if we can continue to build a broad tent of public support for America's efforts to lead development, health, and humanitarian efforts around the world, and if we can continue to pursue what are sometimes difficult reforms to ensure that we are using our money wisely, reporting on results, and improving the cost effectiveness of our investments, that America still has the capacity to lead the world in ending extreme poverty and serving the needs of the world's most vulnerable. And that that, over time, will continue to make us safer, more secure, and more admired. Thank you. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Ms. Granger. Thank you, Dr. Shah. I think the people on this subcommittee believe the same thing or they wouldn't be serving. And so, we just have questions on how that occurs. I just have one question, one topic, and that has to do with Afghanistan. And watching the elections with millions turning out, that is really a testament to what has been done. It was a very good thing to watch. We don't know if the new president will sign the Bilateral Security Agreement. That remains to be seen. We have made important gains in health, education, women's rights, things that Mrs. Lowey was talking about. So, while the staffing plan in Afghanistan is decreasing, the administration's request for assistance to Afghanistan is increasing. Of the few questions I have, in light of the ongoing security challenges and corruption issues, what kinds of programs are you going to support with these funds in Afghanistan? Also, how do you also hope to have the level of oversight this committee expects when there is less staff planned for 2015, and how can these programs be implemented to keep U.S. personnel and our development partners safe? Their safety is our greatest concern. Thank you. Dr. Shah. Thank you, Chairwoman. And I just want to highlight that for 2 to 3 percent of the cost of this war, USAID development investments have helped ensure that 8 million kids go to school, including 3 million girls, have helped to generate the most rapid reductions in child death and maternal death anywhere in the world, have helped to build out 2,200 kilometers of road infrastructure that creates economic connectivity that gives the Afghan people a chance to have a brighter future, and have helped to both build the independent election commission and support the election processes that we saw this weekend, which were a powerful demonstration of a more optimistic future taken on by Afghans themselves. We will continue, even in a more challenging security environment, to make the investments that we believe are required to help Afghanistan achieve peace, security, and some degree of prosperity and social justice, with a priority of focusing on women and the important gains that have been made and sustaining those gains. But also with a priority of--and we have carefully reviewed, through a sustainability review, all of our programs. We are going to continue the agricultural programs that make a big difference for the rural economy, which is still 60 percent of total employment in Afghanistan. We will continue support for schools and higher education because that is central to girls having opportunity. We will continue our health programs. We are looking at our larger infrastructure projects, and we want to make sure that we can both get eyes on those projects and that they can be sustained as well, some of which requires other partners picking up a bigger component of those efforts. And overall, I was with the team this morning by videoconference, with the Ambassador and our mission director. You know, they are committed to visiting projects and programs, to maybe paying the higher costs it will take operationally to have the security and capacity to get out there. But we are going to have an evaluation system that allows us to get American eyes on most major efforts where that is required and supplemented by all kinds of third-party data, including satellite imagery on crop yields to local Afghan partners reviewing and visiting projects and programs regularly. The Accountable Assistance for Afghanistan initiative we set up 3 or 4 years ago has been successful at improving accountability for aid and assistance in Afghanistan, and we intend to continue that effort, although adapting it a bit to highlight the safety concerns you have raised. Ms. Granger. And the last had to do with how do you keep the people that are there safe? If there is not a Bilateral Security Agreement, then what do we need to do about security? Dr. Shah. Well, a Bilateral Security Agreement is very important, and our team contributes to the larger security team that is trying to pull that together, and we will see what happens after the election. Assuming that Afghan security forces have the kinds of abilities they just proved that they have over the past weekend, we are confident that we, with all of the supplementary efforts, can have our people visiting projects and programs in a safe manner. We are not going to take undue personal risks. We have already been challenged as an agency and a government in losing key members of our team who went out to visit projects and programs and were attacked and lost their lives. We are not going to put our people at undue risk. But all of our people out there are taking some degree of risk already because they believe in and know this is work that is critical to our national security. And after the conduct of a highly costly war over more than a decade, I certainly hope that USAID and our country and our Congress can continue to support the efforts, like keeping girls in school, getting women into civil service, helping different parts of the country have economic opportunity, and supporting agriculture that is going to becritical for the next decade. Ms. Granger. Thank you. Mrs. Lowey. Mrs. Lowey. Thank you. Both our interests and challenges around the world do not generally respect country borders. Yet our democracy, governance, and development activities are inherently country- by-country specific. As we witnessed during the Arab Spring, events transpire differently in each country, particularly the tumultuous aftermath of the 2011 revolution in Egypt. Given recent unrest in many countries with which the United States has strong military relationships, I hope you can address how support for civil society and development versus stated national security interests is determined in the administration and specifically in USAID programs. I will follow up with a couple of quick questions so that you can discuss the issue, which I think is so important today. How does the USAID implement democracy programs in repressive countries while abiding by the Brownback amendment, which prevents foreign governments from having control or veto power over democracy assistance? In which countries has this been a particular challenge, and how have you dealt with these cases? Is a foreign government allowed to review U.S. democracy programming plans through prior consultation or other checkpoints? For instance, could the government in countries that repress women's rights preselect or obtain the names of participants in your programs? Using a national security lens, how would results be measured and evaluated? Is focusing solely on strategic interests a detriment to human rights concerns, or is it all part of our interconnected policy strategy? And I would appreciate it, given so much of the news today, if you could put this in the context of one of the programs that has been on the news' front pages, ZunZuneo. Who is responsible for developing this program, and do USAID's activities in democracy programs put other development programs at risk by increasing the perception that everything USAID does is political in nature? If you could also share with us in which countries does USAID's democracy work pose the greatest risk to our other programs in health, education, or agriculture? If you can clarify, I think it would be very helpful. Dr. Shah. Congresswoman, thank you for those comprehensive questions, and I look forward to the opportunity to address them. First, on civil society. The United States is deeply concerned about the closing of civil society space in country after country. Secretary Clinton and Secretary Kerry have both started and pursued a strategic dialogue on civil society of which USAID is a part. And in nearly every country we work in, we support civil society actors, whether it is small women's cooperatives that are part of our Feed the Future program or whether it is the Ukrainian organizations that documented human rights violations that took place during the protest period that we are all acutely aware of. The history of that type of support, which has been ongoing around the world, has been an important part of how America provides assistance and partnership. So that even when we were in Senegal, the President met specifically with the civil society groups we supported to hear their stories of how they were able to leverage our support to build a culture and a process that allowed for real democratic presidential transition there, when it didn't look like it was going to happen. America is proud of that. USAID is proud of that part of our portfolio, and it is an integrated and integral part of how we provide assistance around the world. With respect to the democratic governance portfolio, the Brownback amendment, and your references about foreign government review, we disclose all of our programs publicly. The program with respect to Cuba is one example. But we notify Congress of all of these programs. In country, we have these transactions publicly available on foreignassistance.gov, on our Web site, and through the grantees, there is no covert activity that takes place. That said, we don't share the participation data with governments. Governments may sometimes express displeasure, but we don't give them the capacity to shut down our programs by cherry-picking one or two that are promoting civil society or democratic governance that they insist be shut down. I was thinking about that in the context of what is going on in Uganda, where a new law, criminalizes certain activity that we pursue to treat patients with HIV/AIDS that are gay or lesbian. And you know, we work with governments, but we don't program funds through them in large amounts, and we don't give them veto power over specific projects and programs. With respect to Cuba, I appreciate you asking the question. The purpose of this program, like the purpose of other similar programs, was to support civil society and to provide platforms to communicate amongst the Cuban people. Any representation that the purpose of the program is different from that is inaccurate. We have programs like this in Africa, in Asia, in Latin America, throughout the world, and they are conducted and consistent with the manner of the law. The GAO report on the Cuba program specifically highlighted the improved management practices at USAID and complimented our execution of this program, and that was after a thorough review not just of the program overall, but of a specific contractor and a specific subproject with Mobile Accord. With respect to your question about whether those programs put at risk other efforts in health and hunger and those types of issues, that is obviously not a critical issue in Cuba because we don't have, per the Helms-Burton amendment, the capacity to do those types of other programs there. But with respect to other parts of the world, we have just said, and the President said this, the Secretary of State has said this, and the prior administration has said this, that when America engages around the world, we are going to project through that engagement some basic values. We are doing that right now in Uganda with respect to the antiretroviral treatment of people who are gay or lesbian. We can't disassociate our values from our work, and one of the core elements of our values is to support civil society, is to allow freedom of expression, is to connect with those who are vulnerable, and to ensure that the benefits of our overall aid and assistance reaches the most vulnerable within society. Mrs. Lowey. If I could just follow up with one other question? Alan Gross has now spent more than 4 years in jail in Cuba after trying to broaden access to the Internet there. Could you respond to that situation? Dr. Shah. Yes. Alan's incarceration in Cuba is wrong. It is inappropriate. It is inexcusable. The Secretary of State; Wendy Sherman, our Under Secretary of State; the President himself have all engaged on this issue, and I know that there have been a broad range of activities that the State Department has pursued to secure Alan's release. Wendy can brief on that in a secure setting and in a classified setting. I will say on our end, I think about the Gross family all the time. And sometimes we must be discreet in how we do our work, whether it is to save lives in Syria when we are tending to medical treatments of victims or whether it is in the execution of this program, precisely because we want to protect our people from being exposed to those types of risks. Mrs. Lowey. Thank you. Ms. Granger. I will call on Members, alternating between majority and minority based on seniority of those present when the hearing was called to order. I want to remind Members that you have 5 minutes for your questions and responses from the witness. A yellow light on your timer will appear when you have 2 minutes remaining. If time permits, we will have a second round of questions. However, we know that votes are going to be called during the time that is allotted to this. So I would ask you to be particularly careful about your time. I know we all have multiple subcommittees, I do as well. So I am going to call on Mr. Rooney, and then turn the chair over to Congressman Dent. Thank you. Mr. Rooney. Thank you, Madam Chair. Dr. Shah, I want to talk about Jordan and the Economic Support Fund, which we have learned a lot about this year not only from the king's visit, but with all the intelligence and news that we have seen about the refugees going from Syria into Jordan and with the challenges that Jordan is having to deal with, with regard to that. And specifically, one of the programs that I think is important, what I would like you to comment on and sort of give us an update, deals with the fact that some 36 percent of those refugees are or going to be of school age, 5 to 17 years old, which accounts for almost 150,000 boys and 131,000 girls. So this program, which goes to Jordan to help with educating those kids, is something that I think will certainly help Jordan and help deal with the issues that they are going through right now. But can you talk about it, talk about the successes, some of the challenges, and also specifically with regard to how it is working to counter or try to educate children out of the whole terrorist realm? Hopefully, you know, that is one of the end goals of that program. Dr. Shah. Thank you, Congressman. I appreciate you asking about Jordan. Over the last several years, the United States has provided $1.7 billion in support to Syrians and Syrian refugees who are at critical vulnerability with respect to the crisis that has been ongoing there. In addition to that, we have had our ongoing program with Jordan, and that has been supplemented with a major loan guarantee effort and then accelerated investments in areas like education to help deal with the flood of refugees. There have been more than 2.5 million refugees coming out of Syria, and Jordan and Lebanon I think in particular have been the two countries that have taken by far the highest number and percentage of Syrian refugees. As you point out, 40 to 45 percent are school-aged children; and we have large education programs in both Jordan and Lebanon. So, in both settings, we have worked to help create opportunities for Syrian kids to go to school while also maintaining access to the same schools, of course, for the host community children. You can imagine this is very difficult. If any of us had kids in school and all of a sudden class sizes were going to double or triple overnight because of a refugee crisis, that would be a tough sell in the United States. So we have launched an effort that we call No Lost Generation, and we have worked with a host of international partners from the Gulf states as well as with other donors to try to get more resources for education in Jordan and Lebanon, to try to create a double shift system where Syrian kids can go to school in the afternoons in those schools and try to make sure that we don't lose a whole generation of kids to strife and poverty, where a lack of education would be devastating in an environment where there is a high risk that these kids go the wrong way should they not have any meaningful opportunity in life. I hope the American people can take pride in the fact that the United States and USAID have been by far the largest and the global leader providing humanitarian assistance throughout the region, now reaching more than 7 or 8 million people. Mr. Rooney. Thank you very much. Thank you, Mr. Chairman. I yield back. Mr. Dent [presiding]. Thank you. At this time, I would like to recognize the gentlelady from California, Ms. Lee. Ms. Lee. Thank you, Mr. Chairman. Good to see you, Dr. Shah. And you know I have got to follow up with you on the Cuba question. This Cuba Twitter program was instituted, I guess, shortly after Alan Gross was arrested. Now I have visited Alan Gross twice. For the last 3 or 4 years, I have been very involved in the discussions between our own Government and the Cuban government, and quite frankly, there have been maybe five or six individuals on our side that I have talked with. This is the first day that I have heard or learned that Wendy Sherman is part of that. And I just want to ask you, first of all, who is the lead negotiator or person that we should work with on our side? Secondly, you say that we don't engage in covert activity. Okay, we may not, but some of us believe that you do and that the whole goal is regime change. And you know, we just happen to disagree when you say this is just to promote discourse among civil society. But it is, in effect, most of the time the goal is regime change. And thirdly, with regard to Alan Gross, and we have talked about this over and over and over again, he was a subcontractor. Now whether you agree or not, Cuba has certain laws, just like we have certain laws in our own country. If, in fact, a U.S. contractor or subcontractor violates the law of another country, they are subject to whatever follows, whatever laws, you know, require in terms of prosecution. I don't agree with what has taken place, and I think it is inexcusable about Alan Gross, but to say that we weren't part of this in terms of allowing Alan Gross to be--to work on a project and you didn't disclose in the contract that he could be subject to arrest based on the laws of another country I think is outrageous. If a person is going to subcontract work under these democracy programs, they should know what risks they are taking. Now Alan is on a hunger strike. We don't know where that is going to lead. And so, some of us really want to try to move this process forward so that we can get him out. And so, I am asking you once again. One, who is the point person? Two, have you all revised some of these contracts so that the contractors and subcontractors know when they are engaged in these democracy programs that they could be subject to arrest based on the country in which their laws--in which they are violating their laws? And thirdly, you know, for the life of me, I don't quite understand your not seeing as covert activity and regime change, and I would like to hear why you don't see that. Dr. Shah. Sure. Thank you, Congresswoman, and I just want to on other topics, but on this one as well thank you for your engagement and your support, and I have appreciated the chance to learn from you and work with you. On this in particular, let me say a few things. First, we care about Alan, about his family, about Judy. What they have had to go through is extraordinarily wrong. Wendy Sherman is the lead on this. She may have a team, obviously, the State Department is a big place, but she is the Under Secretary that I have worked with, and I know that she would be willing to and able to articulate to you our efforts and our strategy. Efforts obviously have been unsuccessful to date, and as you know, they include specific actions taken recently by the highest levels of our Government. The second is with respect to is the program covert? This program has been notified in congressional notifications and congressional budget justifications every year since 2008. The fact that we are discussing it in this forum and that it is an unclassified program illustrates that this is not a covert effort. Ms. Lee. Well, I think they did reveal that. It may not-- okay. Dr. Shah. The GAO reviewed this project and made a judgment that it was consistent with the law. Ms. Lee. The GAO, yes, but that took a little bit of pushing. Dr. Shah. And we are discreet. Ms. Lee. Which it is. Dr. Shah. And we are discreet. Thank you. We are discreet with the implementation of a range of things, not just in the democratic governance space. But we have provided 250,000 medical procedures and surgeries inside of Syria over the last 3 years, some provided by Syrian-American doctors. We are not waving the American flag at those posts, since they are already targets, and many have already lost their lives doing that work. So we have to balance and conduct this work in a manner where we are making some effort to protect those who carry it out. And that is why we do some of these things discreetly. I do want to address your point about how we think about this in broad terms. Ms. Lee. And the contracts. Why you would subject a U.S. citizen to arrest and not disclose they are subject to arrest. Dr. Shah. Right. So we do inform and clearly communicate the context, the risks, and the personal responsibility. Ms. Lee. No, but Dr. Shah, you don't communicate thelaws of the other country that they could be in violation of. Dr. Shah. We highlight the risks, and that requires describing that. Ms. Lee. But you don't say that you could be subject to arrest if you engage in these activities. Dr. Shah. Well, no, we do. We describe the context. It was not done in Alan's case. I agree with that. That was in 2008. It was before I arrived. Ms. Lee. And we have worked with you to try to get this straight since then. Dr. Shah. Yes, and we have improved the management of this. But I do want to say one thing about that. Right now, we have people providing antiretroviral drugs to gay and lesbian patients inside of Uganda that are also taking new risks, given the criminalization of providing services in that context, and it is tough. I am not prepared to tell them to cut those folks off from receiving lifesaving assistance. Ms. Lee. No, but that is not what I am talking about, Dr. Shah. I am talking about---- Mr. Dent. The time is expired. Ms. Lee[continuing]. Those engaged in these programs, knowing that they are violating the country's other laws, and they could be subject, just so they know. Dr. Shah. Yes. Okay. I appreciate that. I think that is right. I think we should be communicating the risks to our implementing partners, and we do. Now we do with our partners. Absolutely. Ms. Lee. Now you do. But not when Alan was arrested, and that has got to be part of the discussion. Dr. Shah. But we have since I got there, yes. Mr. Dent. Thank you. I recognize myself for 5 minutes at this time. Good afternoon, Dr. Shah. The fiscal year 2015 request includes a $90 million cut to USAID's global health programs relative to enacted levels. This includes a $10 million cut to maternal and child health programs. Yet within that line item is a $25 million increase for the U.S. contribution to the Global Alliance for Vaccines and Immunizations, or GAVI. I am just concerned about how--where the administration plans to offset the increase for GAVI. Could you provide information on which maternal and child health programs you are proposing to cut? Dr. Shah. Yes. Thank you, and thank you for your support and your leadership. I will say on the global health budget, our fiscal year 2015 budget is a small increase compared to the request we made in 2014. And I thank Congress for its generosity in 2014, and I continue to believe that our investments in global health and child survival are amongst the most cost-effective investments we make around the world. This year's budget environment overall has been very challenging, with the top line coming down on the 150 account and a shift in resources to pay for major security investments around the world. That said, within this portfolio, we will make the $200 million investment, if we have the support of Congress, in GAVI. We believe GAVI is highly effective at getting low-cost vaccines and new vaccines to kids who critically need them. And then we will have the resources to work on a supplemental basis to make sure that we are reaching those same kids with a whole range of other interventions from supplementary feeding to malaria bed nets to chlorhexidine and other new products and technologies we have helped develop. I can have my team follow up on precisely where the redirections will come from, but in general, we believe over the next few years, we will be able to accelerate dramatically the achievement of results in child survival. And this budget will enable that. Mr. Dent. Thank you. I look forward to receiving that information from your staff. On the issue of PEPFAR, the use of the antiretroviral drugs is critical to both treating and preventing HIV infection. The double impact of the antiretroviral treatment is also reflected in the new WHO guidelines, which recognize that earlier treatment can result in fewer transmissions and prolong life. In recent years, PEPFAR spending on antiretroviral drugs has decreased and totals much less than 10 percent of all PEPFAR spending, despite millions of people in need of and not receiving antiretroviral drugs in PEPFAR-supported countries. What actions will the Federal Government take to reverse this trend and ensure that PEPFAR meets the statutory requirement of spending more than half of the program's appropriations on treatment and is targeting its spending to maximize the cost-effective impact of antiretroviral therapies? Dr. Shah. Thank you. I want to make a few points on this. First, the President laid out a clear goal of 6 million patients on antiretroviral therapy, and as of December this year, we had achieved well beyond that goal. I believe it is 6.3 million in that context. The second is we share the treatment burden and the cost with countries themselves and with the Global Fund, and a number of other partners, but really countries themselves and the Global Fund. And what we have seen over the last 5 years is a shift of resources where countries are putting more of their own resources in, and Global Fund is putting more directed resources in as well. The third is the cost of the antiretrovirals have come down dramatically. So as a total--as a proportion, the antiretroviral itself is a lower cost. What is--what we now know is required to have a high-quality program that is preventing deaths at an optimized rate is having effective treatment initiation earlier and having effective adherence efforts over the long term. So the all-in, more comprehensive treatment costs should clearly meet the statutory requirements. I can follow up with more specific detail on that, but that has been--those have been the major trends in PEPFAR. And I believe they offer the opportunity to create an AIDS-free generation consistent with the blueprint we have published with our colleagues at the State Department. Mr. Dent. I have a series of seven questions, which I will submit for the record, except for one. I will ask you to respond, your staff to respond to those at a later date. But worldwide, deaths of children under 5 years of age, mainly from preventable infectious diseases, has dropped from about 12.6 million per year in 1990 to 6.6 million per year in 2012. That is probably one of the greatest stories in the history of human health. What more can the U.S. do beyond what it is already doing to help prevent the deaths of the next 6 million? Dr. Shah. Well, thank you, sir, for your question. And the reality is the opportunity to end preventable child death is, I think, the most profound and most cost-effective opportunity we have in global development. Two years ago, we brought together more than 80 countries, civil society, faith- based institutions, and got everyone to sign a commitment to end preventable child death by 2035. And we have set targets and goals. We created country strategies and measurement plans. We are now in the process of reviewing 24 country programs and restructuring and redefining the investment portfolio in those programs to accelerate lives saved over the next 3 years. At the end of June we will be unveiling the new investment plan in those 24 countries and trying to bring many more of our partners, including countries themselves, to that task. A final thing I will say about this is that the most important trend in this space has been getting countries themselves to take more ownership, direct more of their resources, and focus with more business-like, results-oriented investment on ending preventable child death. And countries like Ethiopia, India, Nigeria, South Africa have taken that on and are leading that charge. And that is why our investments in child survival are now 15 percent of the total global investment, and we want to continue to get others to do more. Mr. Dent. Thank you. My time has expired. At this time, I recognize the gentleman from Texas, Mr. Cuellar, for 5 minutes. Mr. Cuellar. Thank you, Mr. Chairman. Dr. Shah, good seeing you again. Let me talk to you about your OEs, your operating expenses. From the present estimate to the request for 2015, you all had a $243,000 decrease. I haven't seen all the countries, but I can look at the Republic of Mexico, and I know when we had Secretary Kerry, I had asked him why he had reduced his 2015, and he told me he didn't. And he was wrong. His staff a week later sent me some information, and actually, they had gone from $227 million to $115 million, a 49 percent decrease from the prior year. From there, also under one of the accounts that you handle, we had specifically increased Mexico from $35 million to $45 million, and then again, it got reduced again on the request. Dr. Shah. Well, thank you, Congressman. Let me just say we have a very strong program in Mexico that delivers really important results, particularly on justice sector reform and support with implementation of crime management policies. One of the things that -- Mr. Cuellar. I don't mean to interrupt. I apologize. Dr. Shah. Yes. Sure. Mr. Cuellar. You hear a lot from Members of Congress about the violence and the border and this and at. Why would you all decrease money, especially when we had just increased it by $10 million, and you all came back and decreased it by $10 million? And again, if you are addressing violence, and everybody talks about the violence that we have to our third most important neighbor, why would you decrease this in Mexico? Dr. Shah. Well, sir, overall, the budgets are very, very tight this year. And the larger narrative on the budget is that there has been a big shift to security investment that puts downward pressure on foreign assistance. Within that, we have tried to maintain core priorities. And in the context of Mexico, the fiscal year 2015 request is $47.5 million, and my team can follow upon the numbers. But I think it is $47.5 million. That is higher than the $45 million requested in fiscal year 2014. So we are trying to maintain support for this effort. We are trying to focus the effort on the Merida program and the efforts to support citizen security. Mr. Cuellar. America's funding was cut by 49 percent. That is why I started off with your OEs. You only reduced it by 243,000. Actually, in Washington, DC., your Washington operation is--about $425 million. This is for USAID. For central support, that is another $248 million. So I can understand there is pressure, but when you only reduce your administration costs by $243--it gets us to think about this. Let me ask you, because I have got about a minute and a half, a question I have been asking and I think Senator Tom Harkin has been asking you all. And I believe he still hasn't got an answer for over a year, and I haven't got an answer for a year also. The Scholarships for Education and Economic Development, or SEED program. I know you all are looking at another plan, but we still haven't got any details on that plan. I think the Senator asked you about a 1-year extension so you can develop something. In June of this year, in a couple of months, some of those programs are going to lapse, but there is still no plan from you all out there. Could you tell us what your plan is for the SEED program and whether you are willing to delay at least some of those lapses so we can at least get an idea of what you are planning to do? And anything you want to tell me about the President's initiative, what your direction is for the Small Business Network of America? Dr. Shah. Thank you, sir. On SEED, let me just say this has been a highly successful 25-year program to bring students, as you know, from the Latin- America-Caribbean region to the United States, and it can cost up to $45,000 per student per year. And so, as we have looked at the program going forward, in consultation with community college partners, we are constructing a new vision of it where more of the education takes place in country and where the community colleges are engaged in partnerships with host institutions in country to upgrade their skills and to allow for some connectivity. What I have talked about with Senator Harkin and others is there was a miscommunication or there was a perception that we were abruptly ending the program before the new one comes into place. That is not going to happen. There is no student that is here on a 2-year program that is going to be sent back after a year. All of the existing program is going to be fully transitioned before we go forward with a new program. Mr. Cuellar. So, for the record--for the record, on June, if a program lapsed, that is going to be extended? Dr. Shah. No student that is currently in a program is not going to have the opportunity to live out the full commitment, they currently have and that I think is the right decision and consistent with your guidance and the Senator's. But let me also note that Christie Vilsack, our special coordinator for education, has been consulting widely with the community colleges themselves, has been on the Hill a bit, but would be eager to follow up with you to describe what we are thinking to get your feedback to ensure that current program partners are excited about the new program. I think it is an opportunity to increase the number of kids we touch and support and also build stronger ties between American institutions and those in the region in a manner that will get all the program partners enthusiastic with essentially the same amount of resources going forward. So it is an effort to just modernize what has been a very successful effort. We don't want anyone to lose out in the transition, and we want to work with you to make it a great program again. Mr. Cuellar. Thank you, sir. Dr. Shah. Thank you. Mr. Dent. Thank you. At this time, I recognize the gentleman from Florida for 5 minutes, Mr. Diaz-Balart. Mr. Diaz-Balart. Thank you, Mr. Chairman. Dr. Shah, how are you, sir? Just two questions. Before that, one quick point on the issue of Twitter so that Cubans could use Twitter in a country that access to the Internet is, frankly, forbidden. I know I keep hearing a lot of folks talking about that it was a strange, covert, you know, NSA program. And yet if you look at the President's budget when it was created, they talk about exactly what it was about. And a lot of the outrage coming from particularly one member of the Senate, and yet that same member of the Senate put language in the Senate bill, appropriations bill last year asking USAID to do, frankly, a similar program in Iran. So, again, I just keep hearing all these things, and I was a little bit shocked by the story from AP. I don't tend to criticize the press, but trying to come up as if this was some covert, strange operation when, in fact, it has been in print. It has been looked at, reviewed by everyone, including GAO. My only concern there is I hope that we are able to continue to do that because it was a huge success for a while, and then obviously, it became too big too quick and, all of a sudden, kind of like outdid its funding. I am just hoping, Dr. Shah, that we look at options like that and things like that not only for Cuba, but other places where we need to try to break that Internet and communication blockade. That is not for you to answer, just I am hoping that you are looking at the success of that and that we can hopefully try to replicate that. Two points. I was recently, Dr. Shah, in Haiti with a couple of my colleagues. And we visited a USAID housing project, the Haut Damier--and I know I am not pronouncing that right--housing site. It was subject to a GAO report. I am not going to get into what we saw there about the GAO report. I am just going to bring out another little issue. We all know that Haiti has an issue with the fact that they have cut down a lot of the trees just to cook, charcoal. And so, there is an initiative, which I think is meritorious, to see if you can get people off of charcoal onto gas. What we noticed, however, right away, because gas is more expensive than just buying--you can buy a couple of chunks of charcoal. And we noticed right away that some of the gas stoves had been provided by programs were, frankly, just used as shelves. And we saw the charcoal stoves right next door. So this is the question. Have studies been done as to where that kind of program--I am assuming there are other places where we have had similar issues. Where it has worked, where it hasn't worked? Why it has worked where it has worked? Why it hasn't worked where it has worked? I would imagine that there would be some things that you could kind of just pull off different studies before you attempt one. I fear that the one in Haiti, which is very well intentioned, may not have the desired effect. And that is--if you want to just address that first? Dr. Shah. Sure. Thank you, Congressman. On that specific effort, it is important that over time, Haitians stop cutting down trees and using them for charcoal. That is just--and there has been a huge amount of evidence to demonstrate how disastrous that is for their core productive agricultural economy, for example. So as part of reconstruction effort and in providing 65,000 families with housing after the earthquake and in the reconstruction period, we have had some of these pilot efforts to do community conversion to LNG gas cook stoves. And what we have learned from prior efforts is that training for food vendors, for schools, for households is critically important. Initial subsidy for the LNG canisters is critical to get the new system up and running. That ongoing kind of household-level community effort to help people talk to each other and kind of move en masse both creates a market, and it creates enough social infrastructure so that people can see their neighbors using it and be more comfortable with that practice. Some of the efforts in this regard have been successful in Haiti. Others have not. And so, we are in the process of evaluating all of these, learning and adapting the programs. But it is something we have got to keep trying to do, and you are right to direct us to look at best practices, which are pretty prevalent in many other parts of the world where people have successfully made this transition, and try to adapt those learnings to Haiti. Mr. Diaz-Balart. Sure. I don't mean to interrupt you, but I am glad that you are aware of that. There are areas where, obviously, it is not going to work and where you have to make it work. You are absolutely right. I am just concerned that we are making sure that it is the best practices. One other thing, Dr. Shah, we visited a hospital, which is where Project Medishare is, Bernard Mevs Hospital. And incredible amount of volunteers, including Americans, were there--I know they are experiencing someelectrical issues, some power issues. I don't know if your folks have had an opportunity to look at that, but it is a crucial--it is a hospital that, obviously, is very important to Haiti. And I can get you some more information. And lastly-- well, I am out of time, Mr. Chairman. So maybe we will have a second round to talk a little bit about Venezuela. Dr. Shah. Okay, thanks. Mr. Dent. At this time, I recognize the gentlelady from Florida, Ms. Wasserman Schultz, for 5 minutes. Ms. Wasserman Schultz. Thank you, Mr. Chairman. Dr. Shah, it is good to see you, and thank you for your commitment. And I enjoyed talking with you in my office a couple of weeks ago. Just so that we are clear that Cuba is not a partisan issue, let me echo the comments of my colleague from Florida, Mr. Diaz-Balart. We have fought hard in a bipartisan way for funding for civil society programs and also fought equally as hard in a bipartisan way to ensure that through GAO review that accountability was a part of those programs so that we weren't just throwing money into a black hole and not really seeing any results. And for a while, we did have concerns that the civil society programs that we were funding were just going to organizations with not a lot to show for it. It is pretty clear that this particular program--for lack of a better term, Cuban Twitter--did have results and did connect Cubans to one another and showed promise. So, you know, I really--while I don't want to endorse regime change here in this subcommittee, I think there is no question that the United States position is and should be that human rights be something that we stand up for as a nation, that we use our vast resources and influence to help people who are being persecuted, and that there is no question that that persecution and human rights violations are ongoing in a nation just 90 miles from our shore. So just saying. And I would appreciate if you have anything to add. But I wanted to ask you specifically about faith-based organizations and support for family planning. You know, we often hear from opponents of access to family planning that their opposition stems from religious beliefs. But I know I hear all the time from religious organizations across all religions, I might add, from the Jews to the Methodists -- even in Afghanistan, there are some religious leaders who are realizing that family planning has become critical for the health and economic well-being of that country, as well as in a variety of African countries as well. So can you talk about what USAID is doing to work with faith-based organizations in the field to deliver reproductive health services? Also what more can we do to support those efforts and get the word out but that not only is family planning not incompatible with faith, but that the two are, in fact, mutually reinforcing? Because I think there is a disconnect here inside the beltway between those that seem to condemn family planning as somehow being not in line with faith-based values. Dr. Shah. Thank you, Congresswoman, for your tremendous leadership on these issues. I appreciate the question, and I may save Cuba for perhaps later in the hearing and speak to the family planning issue first. As you know, our programs in family planning are entirely voluntary, that we have very strict controls to ensure that we do not fund abortion, that we are the world's largest supporter of voluntary family planning for very poor communities, and it is a critical element of empowering women to take control of their own lives in settings where they otherwise may not have that opportunity. We know that the Obama administration, relative to the previous administration has increased the commitment to family planning on the order of 40 percent and sustained that over the course of a very difficult budget environment. And we know that we actually have built partnerships with AusAID and the UK and the Bill and Melinda Gates Foundation to bring others into a really results-oriented approach that can take advantage of the two big realities of these family planning programs. The first is that this is one of the most cost-effective ways to save mothers' lives during child birth. And in places where child birth is still highly risky in terms of mortality, that is critical. And second, that it is about the most cost- effective way to save a child's life as well, with proper birth spacing contributing not just to reductions in infant and child mortality, but also to investments that families make in kids' education. So we have been pretty effective, I think, in our family planning programs around the world. They are done under, as you know, careful scrutiny. But we have been proud of these efforts, and we have been proud of the fact that we have gotten so many other partners, including the Gates Foundation and the UK and Australia and countries themselves, to take ownership of many of these and increase their resources considerably through an initiative we all call Family Planning 2020, I believe. Mr. Dent. Thank you. At this time, I recognize the gentlemen from Kansas, Mr. Yoder. Five minutes. Mr. Yoder. Thank you, Mr. Chairman. Dr. Shah, thanks for joining us. It is good to see you again. We have discussed this issue before. I wanted to just go back to a topic related to the Food for Peace program and how it affects American, Kansas farm producers all across our districts who are part of producing grain and other products, meat products, et cetera, that are sent around the world to help deal with world hunger. It has been sort of a two-part relationship. One, we are helping feed hungry people, and two, we are putting American producers to work. These products come with a label saying furnished by the American people or being furnished by the people of the United States of America. It is a source of pride, I think, for our country when we see those bags of grain with our label on them go to the right places. The President's budget would allow 25 percent of that aid, as I am sure you are well aware, which is the equivalent of $282 million, to go to cash assistance, as opposed to food assistance. In light of the farm bill debate in which Congress had a chance to litigate this issue and determined to keep the food aid programs the way they are and the status quo, is the administration going to continue to move forward with this budget request, as opposed to changing the underlying law, but to use the appropriations process to change how we administer the dollars? Do you agree with my concerns related to less Kansas, less American farmers being helped? What are your thoughts on that? And I am very concerned about it. And are you concerned about an erosion of public support for the program if more of the dollars are direct aid dollars, as opposed to dollars that are coming back to pay farmers and producers in the country? Dr. Shah. Thank you, Congressman, for the question. I appreciate the points that you raise, and the reason President Obama put forth the proposal last year and this year to reform and modernize this program is because we are facing an acute crisis in terms of humanitarian needs in a number of places that strip our current ability to provide humanitarian services. And we have a proud Food for Peace history. We have reached more than 3 billion people over more than 50 years. But frankly, the value and the size and the consequence of the program has been diminishing over time because of the higher cost structure of a model of assistance where we buy food here, put it on American ships, send it into communities, sometimes sell it in communities to raise cash that we then give to NGOs. That is not as efficient as it used to be, and we believe that a modest incremental reform will allow us this year to reach 2 million additional hungry kids in Syria, Central African Republic, and South Sudan, not cost America anything additional, and continue to support farmers. And here is why I think the reform proposal will continue to support farmers. This whole program is only 0.56 percent of total agricultural exports by value. Most of the major partners we have in the program will continue to be partners and will continue to be partners at a very large scale. We are talking about 25 percent of a $1.4 billion program. Second, we are now moving the product mix that we are sending from America into more specially designed medical foods, whether it is peanut paste or nutributter, and those higher-value products are appropriate for the American food system, which, as you know, is the best and most advanced in the world. And so, I think America is always going to have a huge role to play. But I think our farm partners in particular understand the challenges here. The National Farmers Union has expressed support for the President's reforms, as has Cargill and a number of companies that people might have thought would not. And over time, I think we will build a broad enough tent to continue to allow America to actually be the leader we need to be in these humanitarian settings, and we would appreciate your support for these modest reforms that will continue to make sure people see that American contributions are what are fueling these strong responses in the Philippines and South Sudan and Syria. Mr. Yoder. Well, in light of our efforts around the globe, whether it is the Food for Peace or food aid programs or whatever it may be, as we add more money into the system, the potential for fraud and corruption and misuse grows. Dollars are easier to probably fraud the Government out of than a bag of grain, although that happens as well and in many cases as significantly. So I worry as we move it to dollars, as opposed to grain, that that might become more troublesome. There have been lots and lots of accounts--media reports, IG reports--about fraud and waste in Afghanistan aid. Malaria drugs being sold on the black market that were not going to the intended recipients. I am sure you have been well aware of many of these situations. Could you outline for us where our biggest fraud risks are? What percent of our food aid and our foreign aid as part of USAID is being frauded or not getting to the right recipients based upon your analysis? And what are we doing to cure that? Dr. Shah. Thank you. You know, we have, I think, a very strong program in place to oversee how we spend resources and mitigate the risks of fraud, waste, and abuse. I would say war zones of all kind increase the risks. So active conflict environments in Afghanistan, providing and trucking food around Somalia through al-Shabaab controlled areas a couple of years ago. Those are the kinds of environments that have the highest risks for waste, fraud, and abuse. The reality is most of our program, the great majority are not provided in those contexts and under those terms. And we have a very strong oversight system that includes the Inspector General. It includes very clear reporting. For any resources we provide directly to local partners or countries in particular, we provide them on a receipt basis. So we evaluate the receipts and the costs they have incurred and then reimburse them for incurred expenses. I have worked at the Gates Foundation. I now work at USAID. I understand accountability is critical, and we have increased our accountability systems very significantly in places like Afghanistan. In general, we don't overinvest in it, but we do create a lot of bureaucracy to track every penny. I understand why that is important. But I think we are covered in terms of having a very, very strong accountability system when it comes to waste, fraud, and abuse. And as it relates to your last comment, I will just say that we have now been, since the Bush administration, implementing local and regional purchase in food aid, and we have not only found no higher rate of waste, fraud, and abuse there, we have actually found it brings the cost down, gets the food faster to people in need, and often is the more appropriate mix of products that they need, like in the Philippines response. Mr. Yoder. Well, I look forward to working with you to ensure that we improve the integrity of these programs. I think nothing probably angers our constituents more than seeing American dollars wasted on a program where it is not intended to be overseas. Thank you, Mr. Chairman. Dr. Shah. Thank you. Mr. Dent. Time has expired. I recognize Mrs. Lowey for a moment. Mrs. Lowey. I just want to apologize. Unfortunately, there are four hearings at the same time so I have to leave. I wanted to make two quick points, and I know we will have the opportunity to continue this discussion. First of all, as you know, I am not very happy with the basic education dollars. I think it is absolutely essential that we raise that number and continue to invest in basic education. Secondly, I referred to the situation in Cuba before. As you well know, we had a problem in Pakistan where immunization workers were perceived as being helpful in tracking down Osama bin Laden, and this caused a decrease in immunizations because the general population did not trust them. So I think as we proceed, and I understand that everything that has happened is all on the record and notices were given, et cetera, but I think we have to constantly weigh the investment in development programs and how they can be sabotaged by some of the work that may be perceived as very noble in democracy programs. Whether it is in Cuba or other countries, this is an important priority, and we have to continue to discuss the impact of one on the other. So I thank you again for clarifying the actions of USAID, but I don't think we have resolved the challenges that we have before us. Thank you. Dr. Shah. Should I respond? Mr. Dent. You may respond. Dr. Shah. Well, I would just say thank you, Congresswoman. I would say briefly on education, we have had the chance to discuss this, and I just want to say on the record how much I value your leadership and admire what you have done to help our country lead on this issue all around the world. The two things I will say on that is our fiscal year2015 request is higher than the fiscal year 2014 request. Mrs. Lowey. Not as high as it should be. [Laughter.] Dr. Shah. Not as high as it should be. And as you well know, through our Room to Learn initiative, the partnership model we have with some other funders is really helping us get leverage and better results, and I am very appreciative of your support. And I take your comments on Cuba and Pakistan and look forward to future discussion. Mrs. Lowey. Thank you. Mr. Dent. I recognize the gentleman, Mr. Schiff, for 5 minutes. When we go to the second round, we will do 3 minutes of questions. Thanks. Mr. Schiff. Thank you, Mr. Chairman. And Director, welcome. It is great to see you again, and I apologize if this is the subject of an earlier question, but I wanted to raise Syria with you. According to USAID figures, well more than 9 million people are now in need of humanitarian assistance in Syria due to the devastating civil war there, including over 6.5 million internally displaced persons. I understand and appreciate that the United States is continuing to work through all possible channels to deliver aid to those in need in Syria, including through United Nations, international and nongovernmental organizations, and local Syrian organizations. I am also encouraged to see in your testimony that USAID is providing lifesaving aid to more than 4 million people across the country. While all of Syria's people have suffered, its minority populations and especially Syrian Christians are most at risk. These are some of the oldest Christian communities in the world, dating back to the first decades after the death of Christ. About 2 weeks ago, the town of Kassab, which is predominantly Armenian Christian, was attacked by al-Qaeda linked fighters who crossed over from Turkey, resulting in the town being emptied. Many of its residents were descendents of the survivors of the Armenian genocide, and this attack has greatly increased the apprehension of all of us concerned about Syria's minority communities. Can you tell us what efforts USAID is making to identify and provide for Syrian minority communities? Many of them, I understand, resist seeking refuge in UNHCR and other NGO facilities out of fear for their safety and, thus, are more likely to be internally displaced persons. Dr. Shah. Thank you, Congressman. I appreciate your laying out the consequences of this horrific situation, and the reality is while we are reaching more than 4 million people inside of Syria, there are still 3.5 million that are not being reached by anybody because they are inaccessible because of the conflict. Two hundred twenty thousand of them are literally in besieged areas where food and water are used as a weapon of war, and we saw what they looked like when they left homes a few weekends ago. With respect to minority communities, especially in the north, most of our services to those communities are provided through NGOs and international partners, not primarily U.N. agencies, and are provided through cross-border activities. That allows those communities to be reached, and it allows more effective access, and the U.N. only started some of those cross-border activities very recently in the last few weeks, especially across the Turkish border. Expanding cross-border humanitarian support is a critical part of the U.N. Security Council resolution. I would just note that Valerie Amos of the U.N. reported on the first month of the resolution's implementation and said that the Syrian regime had not lived up to the standards of access on what we call cross-line inside of Syria and cross-border across neighboring countries access issues. And so, we continue to work through that with the Syrians, with others to make sure we are doing as much as we can. But it is insufficient by definition, and I am verysorry to hear about the communities in Kassab, and we will ask our teams to specifically follow up on that. Mr. Schiff. If you would, I would appreciate it. If you could let me know in particular what you are able to find out about the refugees from Kasab. Some of them have taken shelter in Latakia. Others in--I understand some of the elderly across the border in Turkey. If you could let us know what can be done to help provide for them? It is, admittedly, a very small subset of Christians in Syria who are being targeted because they are Christian, which is, in turn, a very subset of the humanitarian disaster in Syria. But I have a great many constituents who are deeply concerned about this. As we approach the genocide, Armenian genocide anniversary, it is particularly painful to see yet another Armenian community ethnically cleansed from its homes. [The information follows:] Dr. Shah. We continue to monitor and respond to needs of recently displaced Christian Syrian-Armenians from the Syrian village of Kassab. USAID partner the United Nations Office for the Coordination of Humanitarian Affairs (OCHA) has conducted several monitoring missions to displacement sites within Syria, including sites with populations displaced from Kassab, to identify humanitarian needs and to negotiate with local authorities for protection and assistance to displaced civilians. UN partners report the majority of displaced Syrian- Armenians from Kassab have been registered as internally displaced persons and are receiving assistance through local Red Crescent Society organizations. In addition to being housed with extended family or renting apartments in urban centers, displaced families have received food assistance, basic household items and hygiene supplies. In addition to the internally displaced population, twenty- one Syrian-Armenians from Kassab were met at the Turkish border by local authorities, where they were provided initial medical exams and then escorted to Turkish-Armenian communities for assistance. The US Consulate in Adana, Turkey visited the refugees and confirmed their immediate needs, including food, medicine, clothing and housing were being met through local community and Red Crescent organizations. Turkish authorities also provided a doctor to assist the refugees who required specialized medical care and prescription medications. The US Consulate in Adana has verified that while the Syrian-Armenian refugees from Kassab are eager to return home and reunite with families if their safety can be assured, they described being safe and comfortable in Turkish communities of refuge. Mr. Schiff. I thank you, Mr. Chairman, and I yield back. Mr. Dent. Thank you. At this time, we will move to a second round of questioning, but for 3 minutes only. First, I recognize Mr. Diaz-Balart for 3 minutes. Mr. Diaz-Balart. Thank you, Mr. Chairman. Dr. Shah, just very quickly about Venezuela, if we may? I don't have to tell anybody here about what is going on there, where you have folks hitting the streets, trying to -- mostly students, trying to regain their freedom and their democracy. You have some of the main opposition leaders in prison for over a month. You have mayors thrown in prison. You have the press being censored. But specifically to your budget request, I believe it includes $5 million ESF funds. My understanding is the budget request of the last few years for Venezuela has actually been seeing a gradual reduction in democracy and civil society programs, despite the reality on the ground in Venezuela. And since the congressional budget justification has not been released yet, as far as I know, well, a couple of things. First place, because of what is going on in Venezuela, do you expect an increase above the $5 million figure, number one? And number two is since the CBJ has not been released, if you can provide us with some additional details as to your request for democracy programs throughout our hemisphere and specifically for Venezuela? And Mr. Chairman, in time. You see that? Dr. Shah. Thank you, Congressman. As Secretary Kerry recently noted about the Venezuelan government, they have severely limited freedoms of assembly and expression precisely as you articulate. USAID supports Venezuelan organizations, and civil society broadly to support citizen advocacy pushing for public accountability. In fact, over the last 45 days, those partners have done quite a lot to identify, document, and report on human rights violations, as our partners have done in Ukraine and in some other parts of the world. The $5 million request for FY2015 is consistent with the fiscal year 2014 request. And throughout the region, we will continue to support these programs. Again, we have had a long conversation about this in this session, but we do think that investing in democracy rights and governance, support for civil society precisely in those places where civil society is harassed and prevented from operating is particularly important. These are longer-term investments that don't often yield very strong and immediately recognizable short-term results. But having seen the long-term efforts pay off in many parts of the world, I think it continues to be a modest, but critical part of how America presents itself in the context of USAID programs. Mr. Diaz-Balart. Thank you. Mr. Dent. At this time, I recognize the gentlelady from California for 3 minutes. Ms. Lee. Ms. Lee. Thank you very much. Back to Cuba again. I am equally as committed to the promotion of human rights everywhere in the world, just as my colleagues are, whether it is in the 70 countries that criminalize those with HIV or AIDS or here in our own country, where we should really be ashamed of the mass incarceration of African-American men. What many of us don't agree with is an embargo against countries like Cuba, 90 miles away, which prevents normal foreign and economic relations where our Government and our own citizens, mind you, cannot travel nor engage in dialogue to address many of these issues. That is the point. I assume the taxpayers believe that the Cuban Twitter program, given our fiscal constraints, was in the best interests of our national security, given that Cuba is on the state-sponsored list of terrorists, or terrorism. It is one of the state sponsors that you guys continue to say, you know, we need to deal with as such. So I just want to see how many money could you lay out the taxpayers paid for this, given that I am sure it is also in our national security interests? Secondly, trying to get a better understanding of how USAID works with the United Nations as it relates to Haiti, in terms of the fight against the cholera epidemic and how you prioritize the funding for cholera, addressing cholera in Haiti? Finally, your cut, I think, in the tuberculosis funding, I believe it is 19 percent from last year. And so, I would like to get a handle on why you are proposing to cut the TB budget, particularly in light of the strong relationship between HIV and AIDS and TB as it relates to it being an opportunistic disease? Thank you again. Dr. Shah. Thank you, Congresswoman. On Cuba, I will just acknowledge your perspective, and I understand the point you make about the embargo. My priority has been taking the law, implementing it and ensuring that our implementation of it was well managed. And the GAO report was important at validating that approach, and I will leave it at that. Ms. Lee. How much did the taxpayer-- Dr. Shah. The program you are referring to--and there were a number of inaccuracies in the AP story so we can share with you the point-by-point rebuttal that we put out publicly--was $1.3 million over a number of years. And for that, about 68,000 Cubans were able to be part of a text messaging communication system. In terms of the U.N. and cholera, you know, cholera has been a priority for our health and water and sanitation programs in Haiti. Our rural health programs there have been extraordinarily effective at reducing the rate of child mortality related to cholera to under the 1 percent WHO target, and we have done that hand-in-glove with the U.N. And so, we will continue to make those investments. We have also tried to do that in a way that builds out a proper health system, so it is not just going and putting out a fire. But it is rather making sure that clinics are well stocked, making sure that the full range of child health interventions are available to kids, especially in rural Haiti. And in some of the districts, we have even invested in secondary care maternity hospitals to help improve maternal health outcomes and to do that in a way that is tied back to some of the higher-order hospitals that were mentioned earlier in the hearing. In terms of TB, this has been a success story. We have had a 50 percent reduction in TB mortality. The United States has three primary accounts for supporting this. The first is USAID's bilateral account. The largest is PEPFAR's bilateral account, which, at $180 million or $190 million, is a significant investment. And the other one is our resource gift to the Global Fund for AIDS, TB, and Malaria. In addition to significantly increasing our Global Fund commitments over the past several years, we just helped the Global Fund board increase its allocation within its fund responsibilities to tuberculosis from 14 to 18 percent, or something along those lines. So we could get you more details on it, but I want to assure you, having worked on this issue, visited programs, built partnerships with local private sector companies and the countries like Brazil, China, India, and Russia, that account for a lot of existing TB mortality, getting them to do more and recognizing that those are middle-income countries that should take more responsibility has been part of our. Mr. Dent. Thank you. At this time, I recognize the gentleman from Texas, Mr. Cuellar, for 3 minutes. Mr. Cuellar. Thank you, Mr. Chairman. Dr. Shah, again, maybe we can set up a phone call with Senator Harkin and I because the way you answered the question about the SEED program still doesn't say if it finishes in June whether that is it for that program. So I would like to follow up because I don't want to take up my time on that. Dr. Shah. Okay. Mr. Cuellar. But I am going to talk to Senator Harkin and follow up. There are two community colleges in Texas. One is in El Paso. The other one is in San Antonio. I represent part of San Antonio. I would like to follow up. The second thing is if you can also follow up later the $10 million that we increased and you all decreased---- Dr. Shah. Yes. Mr. Cuellar.[continuing].If you can specifically tell us what you are looking at doing with that? And then my question for right now is your Central Asia regional for $16.9 million, you are going to continue that cross-border training for the new silk road initiatives. Can you just quickly tell me what countries are included in the silk road initiative? Dr. Shah. Yes. So let me--on SEED, I will commit to that call, and I would be eager to do it. I think both those community colleges have been consulted by our team, but we would be eager to do that. On Mexico, I would just suggest, and we will follow up with the numbers, I have that in our fiscal year 2014 request, we had $45 million total, of which the $10 million in DA. And in our fiscal year 2015 request, we had $47.5 million, of which $12.5 million is DA and $35 million is ESf. So those, maybe those are different from what you have, but we will work that through, and I will make sure my teams are clear about that. Either way, we have carefully reviewed this program. And the investments are, as you know, part of Merida. We believe and we rebid a new project that is focused on justice sector reform, and the results from the effort are quite extraordinary. In communities where we work versus don't work, we are seeing very, very strong quantified, evaluated results-- speeding up trials, speeding up getting the process moving, and making criminal justice more effective. So I would appreciate the chance, to go into this in more detail. Mr. Cuellar. Yes, I would like to do that because, again, what we got from folks at the department were different numbers. So I would like to make sure we are on the same page. Dr. Shah. Okay. And with respect to the new silk road, this is, part of an effort we called the Almaty Consensus, but it is an effort to have Afghanistan and its neighbors work on more regional integration, trade, and energy partnerships. Recently we just concluded an agreement that will help Afghanistan get access to about 1,300 megawatts of energy that will be sold from Tajikistan and other places. The initiative is defined to include the region broadly, ``but specifically includes Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, Uzbekistan, Afghanistan, Pakistan, India.'' And then, there are specific priorities in energy, in trade transit, in customs clearance times, and in improving infrastructure and connectivity. Mr. Cuellar. If you can follow up on this? I have the "stans" countries, and I have Azerbaijan and Georgia. But if you all can follow up on those just to make sure we are on the same initiative. Dr. Shah. We would be happy to. Thank you, sir. Mr. Cuellar. We have some proposed language, and we want to make sure we are on the same page as yours. Dr. Shah. Good. Thank you. Mr. Cuellar. Thank you so much, Doctor. Appreciate your good work. Dr. Shah. Thank you. Mr. Dent. Thank you. I recognize the gentlelady from Florida for 3 minutes. Ms. Wasserman Schultz. Ms. Wasserman Schultz. Thank you, Mr. Chairman. Mr. Dent. Before you begin, somebody has got a computer too close to the microphone. Thanks. Okay. There you go. [Laughter.] Ms. Wasserman Schultz. That would be me. Mr. Dent. Restart the clock. Ms. Wasserman Schultz. Way too much technology going on here. Thank you, Mr. Chairman. I want to focus for a minute on nutrition and just the concerns that I know a number of people have expressed on some of the proposed cuts in the budget in nutrition programs. Congressman Diaz-Balart and I have worked together on the 1,000 Days resolution, and we think, obviously, addressing child hunger and nutrition worldwide is critically important, and I know you do as well. So can you give us an update on the new nutrition initiative, which I think isn't very well understood, and how that proposes to address our priorities around nutrition and child hunger in the face of what seems like cuts to programs that are designed to be effective? Dr. Shah. Thank you. And thank you for your leadership on 1,000 Days. It is one of my favorite examples of bringing updated science and knowledge of what works to a field that has been of ongoing for a long time, but now has an opportunity to dramatically reduce stunting in particular. In May, we will launch a new USAID strategy on nutrition that will effectively serve as an investment plan to back up a series of commitments the Obama administration made in the G-8 last year. And the most important commitment was that we would spend almost $1 billion over a 3-year period in nutrition- specific interventions from agriculture, health, and core supplemental feeding in that 1,000-day window. What we will articulate in the new strategy are the countries we are prioritizing, the specific stunting targets we hope to achieve with the effort, the need to use and leverage resources from our Feed the Future programs in those countries to ensure that we are tackling agriculture and nutrition together. I have had the chance to discuss with the NGO community quite a lot about this effort, and I think it is very important because it starts to bring together health, agriculture, nutrition, against a common goal, which is ensuring that children in particular are not debilitated and stunted over the course of their lives because of a lack of access to adequate nutrition in the first 1,000 days. This has personal significance to me because I come from a long history of Indian Americans, many of whom are stunted in past generations. But when you are like 2 feet taller than your grandmother, it hits home. So we have an opportunity to actually do this well. It will be, I think, a strong effort, and I think what is in the budget is 101 million on the nutrition line item. But that is just one component of what an integrated nutrition strategy can accomplish. America leads the world in this area, and so it is appropriate that we have a strategy and a target and a goal and the ability to report on what we are doing. Mr. Dent. I will recognize myself for 3 minutes. Dr. Shah, is USAID deploying any new technologies beyond the monitoring and evaluation to ensure that when problems are discovered in the M&E process, reasonable steps are being taken to actually resolve those problems, not just learn from them for the future? And do you need any other--do you need any further specific support or flexibility to ensure that you are able to watch projects, even after completion, and take reasonable steps to resolve the problems once identified? Dr. Shah. Well, thank you, Congressman. We have put in place a very aggressive monitoring and evaluation strategy. It was actually recognized by the American Evaluation Association as a best practice. As a result of that effort, relative to 4 or 5 years ago when we produced maybe 10 or 20 coherent evaluations on an annual basis, we now do about 280 a year. They are all available on an iPhone app that you can go to the app store, download the app, and then you would be the 15th person to use it. And I love it. It is great if you have long flights. But the reality is we know that 50 percent of our evaluations are used for midcourse program corrections, and we are also doing post program evaluations in certain cases as well. You know, I support the efforts you have made and others, like Congressman Poe, to really put forth a vision that all of our major programs should be coherently evaluated, and we should learn from them. And I think USAID leads the charge in terms of getting that done and making that data publicly available. In terms of using new technology for that work, in many cases, we have third-party evaluations, which is a best practice in the industry. And in many cases, we do use technology, whether it is SMS data from program participants to make sure teachers are showing up at the schools or satellite imagery to track crop yields, as I just saw we are doing in Nepal through a partnership with NASA. But in general, the goal is to be cost effective in how we do the evaluations. Mr. Dent. Thank you. In the interest of time, I will submit my five additional questions for the record and hope that you can respond to those at a later date. Mr. Dent. And just again, I wanted to thank you, Dr. Shah, again for your time today. Thank you for coming. This concludes today's hearing. Members may submit any additional questions for the record. Mr. Dent. The Subcommittee on State, Foreign Operations, and Related Programs stands adjourned. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Wednesday, April 2, 2014. UNITED NATIONS AND INTERNATIONAL ORGANIZATIONS BUDGET WITNESS SAMANTHA POWER, UNITED STATES AMBASSADOR TO THE UNITED NATIONS Opening Statement of Chairwoman Granger Ms. Granger. The Subcommittee on State, Foreign Operations, and Related Programs will come to order. Ambassador Power, thank you for being with us today to testify on the fiscal year 2015 budget request for the United Nations and other international organizations. The direct appropriations requested goes up significantly, by more than 25 percent. We need to hear why this is justified, especially in light of the fiscal challenges we face here at home. In the short time you have been Ambassador to the U.N., many important issues have come before you that impact U.S. national security. On Iran, the U.N. and the IAEA in particular have an important role to play, both in terms of making sure Iran follows through on its commitments, and in keeping up the pressure as the final deal is negotiated. In Syria, the U.N.'s role is critical, both in eliminating the chemical weapons stockpile and getting humanitarian aid to people in dire need. On Ukraine, the U.N. General Assembly adopted a resolution last week that affirms its commitment to Ukraine's sovereignty. However, the U.N. has not been able to send a more powerful message because of Russia's veto on the Security Council. On the Israeli-Palestinian peace process, just yesterday, President Abbas announced that the Palestinians intend to be a party to 15 international conventions. This is very concerning and could jeopardize the peace process and possibly U.S. assistance. Since this has just happened, the ramifications are unclear. The administration must send a clear message to the Palestinians that the only path to statehood is through a negotiated agreement with Israel, not through unilateral attempts at the U.N. I hope you will update the subcommittee on these and other policy challenges that you face. There are a few other issues I want to mention. The first is a U.N. reform. During your confirmation hearing, you said that you would aggressively pursue efforts at the U.N. to eliminate waste, improve accounting and management, strengthen whistleblower protections, and end any tolerance for corruption. I would like to know what progress you have made in these areas. As you know, the fiscal year 2014 appropriations bill strengthens the transparency and accountability requirements. After all of these years, there is simply no excuse for the U.N. not making these commonsense changes. The final issue is the significant fiscal year 2015 budget proposed for the U.N. and its agencies. The subcommittee has learned that the U.S. intends to vote for a new peacekeeping mission in the Central African Republic. The humanitarian situation is troubling, and there is a clear need to protect civilians and ease their suffering. Yet the costs of such a mission would be significant, and the subcommittee needs to know what you plan to reduce to offset this commitment and whether you intend to submit a budget amendment to the Congress. The United States is by far the largest contributor to U.N. organizations and peacekeeping activities. More work needs to be done to ensure that the U.N. is making serious tradeoffs and is getting its budget under control. In closing, I want to thank you and the U.S. delegation to the U.N. in New York and around the world for the work you do to promote our national interests. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Ms. Granger. Now I will turn it over to Ranking Member Lowey for her opening remarks. Opening Statement of Mrs. Lowey Mrs. Lowey. Ambassador Power, I join Chairwoman Granger in welcoming you today. I must begin by raising yesterday's media reports that Palestinian President Abbas applied for recognition from 15 U.N. conventions and treaties. This reckless effort signals a breakdown in the peace process, with far-reaching repercussions on the United States' relationship with the U.N. and its specialized agencies. Madam Ambassador, I hope you will begin your remarks today by discussing the administration's response to this news. This is distressing because the United Nations plays an integral and indispensable role in maintaining international peace and security; promoting economic and social development; alleviating hunger; championing human rights; and supporting efforts to address humanitarian crises. Conversely, instances of the U.N.'s negligence or unwillingness to act by some members of the Security Council, is unacceptable in the face of haunting images of victims of chemical weapons, gross violations of human rights, millions of refugees, and other tragic and eminently avoidable suffering around the globe. While the U.N. is far from perfect, neglecting or refusing to pay our commitments leaves the United States in a position of weakness, not strength. Our robust engagement is necessary to better protect our credibility on the world stage as well as our national security. Problems in remote areas now cross borders at alarming rate. We need to leverage the strength of this coalition of nations to prevent emerging threats abroad from reaching us here at home and to ensure the U.N. remains accountable and effective. Nuclear proliferation, terrorism, drug trafficking, manmade and natural disasters, infectious disease, extreme poverty and suffering, and environmental degradation confront the entire world community, and no one nation should address them alone. Burden sharing remains the most cost-efficient use of our tax dollars. For all these reasons, the U.S. must pay its bills in full and on time, a responsibility both Republicans and Democratic administrations have consistently upheld. In an increasingly globalized world, the U.N. continues to serve as a critically important tool for advancing U.S. interests and augmenting our own response to many international challenges. For example, the U.N. Security Council imposed tough sanctions against Iran, which played a critical role in bringing about an interim nuclear deal. The IAEA is now monitoring, inspecting, and verifying that Iran is fully implementing the agreement's requirements. Given Iran's history of deception, I would like to hear an update from you on the IAEA's mission and your assessment of Iran's compliance thus far. With regards to Syria, recent reports by the U.N.'s Organization for the Prohibition of Chemical Weapons indicate that 50 percent of Assad's chemical weapons have now been removed. Yet the Syrians missed a March 15th deadline for the destruction of its production facilities. Ambassador Power, what timeline can we now expect for their entire program's disposal? Additionally, please update us on the U.N.'s ability to deliver humanitarian aid. What options do we have if Assad continues to defy the U.N. Security Council and forbid aid workers from reaching hundreds of thousands of innocent Syrians in need? Finally, given the recent crisis over Crimea, I am particularly worried that Russian President Putin will never be a partner in ending this horrific war. What, in your view, can we do about Russia's ever-increasing intransigence? Madam Ambassador, I look forward to hearing from you how the President's budget request will enhance U.S. global leadership at the United Nations. I hope you will highlight the successes since your confirmation as well as your strategies for overcoming the many challenges ahead of us. Thank you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Ms. Granger. Ambassador Power, please proceed with your opening remarks. I would strongly encourage you to summarize your remarks so we can leave enough time for questions and answers. And your full written statement, of course, will be placed in the record. Opening Statement of Ambassador Power Ambassador Power. Thank you so much, Madam Chairwoman, Ranking Member Lowey, Congressmen. Thank you for the invitation to testify. I am really delighted to have the chance to talk with you about the pressing challenges that you have alluded to, and our country's leadership at the United Nations and beyond. Madam Chairwoman, at my confirmation hearing last summer, I pledged to work vigorously for a U.N. that would advance America's stake in global stability, operate with greater efficiency, eliminate anti-Israeli bias, and contribute to universal human rights. My full statement outlines the steps that we have taken in each of these areas. But to honor your time, I will today confine my remarks to five key points. First, I respectfully but strongly urge you to support full funding for the administration's request for a new peacekeeping response mechanism and for the CIPA, CIO, and IO&P accounts. I recognize, and you both have alluded to this, that your consideration of the fiscal year 2015 budget comes at a time when both the administration and Congress are committed, rightly, to fiscal restraint. I am acutely mindful of the very difficult budget climate we are in and, in particular, the extraordinary sacrifices being made by American taxpayers every day. You are making difficult choices about what to fund and what to cut. The United Nations and our financial support to it must receive rigorous scrutiny. Recognizing the need for restraint in spending but also conscious of the very real value these resources provide, we ask for your support because the U.N. and other international organizations enable our country to address diverse problems around the world at a cost and a risk far lower than if we acted on our own. We are the world's leading power and the primary architect of the international system, which continues to benefit the United States and the American people. Our citizens will do better and be safer in a world where rules are observed, prosperity is increasing, human suffering is alleviated, and threats to our well-being are contained. The United Nations is an indispensable partner in all of this. And if you will allow me, in the discussion period, I will go into greater detail on the specific funding requests. Second, the State Department and the U.S. mission will continue to press and press hard, in much the same way you have, Madam Chairwoman, for U.N. reform. This past December, I personally presented the case for financial discipline to the committee that handles the organization's regular budget. I am pleased that the United States has kept the U.N. budget to near zero real growth since the 2010-2011 biennium. We have also secured U.N. progress in reducing staff, freezing pay, cutting waste, increasing transparency, and strengthening oversight of peacekeeping operations. Much more needs to be done, and much more can be done. With your support, we will continue our work to make the U.N. more effective, efficient, transparent, and accountable. Third, we are fighting every day on numerous fronts to end the bias against Israel that has long pervaded the U.N. system. With our help, Israel has in recent months become a full member of two groups from which they had long been excluded, the Western European and Others Group in Geneva, and what is called the JUSCANZ human rights caucus in New York. These groups are where much of the behind the scenes coordination takes place for U.N. meetings, leadership assignments, and votes. And the United States and Israel had tried for years to break down the barriers that were blocking Israel's entry to both groupings. These milestones would perhaps seem less consequential if they had not been so unjustifiably delayed. Slowly but surely, we are chipping away at obstacles and biases. Israel's inclusion sends a powerful message to those striving to isolate or delegitimize the Jewish state, and that message is, ``You will not succeed.'' The United States will stand with Israel. We will defend it, and we will challenge every instance of unfair treatment throughout the U.N. system. Let me also add, given reports yesterday of new Palestinian actions that both of you have referenced, that this solemn commitment also extends to our firm opposition to any and all unilateral actions in the international arena, including on Palestinian statehood, that circumvent or prejudge the very outcomes that can only come about through a negotiated settlement. If I may, Madam Chairwoman, again, I would like to come back to this troubling issue in the discussion period, if I could. Fourth, I ask the subcommittee's full support for U.N. peace operations. From Haiti to Lebanon to Sub-Saharan Africa, our country has a deep and abiding interest in restoring stability, mitigating conflict, and combating terrorism. Multilateral peace operations enable us to do so in a cost- effective manner in such strife-torn countries as South Sudan, Somalia, the DRC, and Mali, as well as in transitioning countries critical to U.S. interests, such as Afghanistan, Libya, and Iraq. Since the President submitted his budget on March 4, owing to a sharply deteriorating security environment in the Central African Republic, Secretary General Ban Ki-moon has in fact recommended the rapid deployment of a new U.N. mission to protect civilians. The emergency in the Central African Republic and our view that a peacekeeping mission is in fact required because of the acute security needs highlights the value of a peacekeeping response mechanism of the type that we have proposed to deal with contingencies arising outside the regular budget cycle. But at the same time, the real world is presenting catastrophic humanitarian emergencies like this one to which it is in the U.S. national interest to respond. We are rigorously reviewing all U.N. missions and urging the U.N. to do so as well. We know the importance of reducing or closing missions where conditions on the ground permit and when host governments have the capability and must find the will to manage their own affairs, particularly after many year-long deployments by the United Nations. In our view, peacekeeping activities are often essential, but they need not be eternal. Finally, we are striving to mobilize the U.N. as a vehicle for the promotion of human dignity and human rights, in a forum in which the United States can continue to stand up to repressive regimes. With the strong backing of many in Congress, including all of you here today, we have exposed Russian duplicity in Ukraine, fought back against the global crackdown on civil society, provided a platform for the victims of repression in North Korea, Cuba, Iran, Syria, Venezuela, and elsewhere, and pursued such vital objectives as universal access to education, an end to gender- based violence, support for religious liberty, and the defeat of HIV/AIDS. Madam Chairwoman, for almost 70 years, American leaders have found it in our interests to participate actively in the United Nations and other international organizations. In this era of seemingly nonstop turbulence, diverse threats, and border-shrinking technologies, we can accrue significant benefit from an institution that seeks every day to prevent conflict, promote development, and protect human rights. For these reasons, I again urge your favorable consideration of our 2015 budget request. To close on a personal note, I consider it both an enormous honor and a great responsibility to sit behind America's placard at the U.N. And a big part of that privilege and that responsibility is the chance to work closely with you, as the guardians of America's purse and Representatives of the American people, to ensure that our national interests are well served. I will be pleased to answer any questions you may have, including some you have already posed. Thank you, Madam Chairwoman. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Ms. Granger. Thank you so much. Thank you for that. I will begin the questions, and Mrs. Lowey and I both share concerns about President Abbas' actions yesterday. As you know, provisions of the U.S. law restrict funding if the Palestinians attempt to obtain member status at the U.N. or its agencies, such as UNESCO, outside of an agreement with Israel. Please give us your interpretation of what happened, why it happened, and explain the impact on the peace process and whether these actions will trigger a cutoff of economic aid to the Palestinians. Ambassador Power. Thank you for that question. We are all completely seized with this issue. And I think you have heard Secretary Kerry speak to it already. But let me say just a few things. First, as I said in my opening statement, and as we have discussed privately as well, the United States opposes all unilateral actions anywhere they may occur in the international system, including where I work every day at the United Nations. There are no short cuts to statehood. And we have made that clear. Efforts that attempt to circumvent the peace process, the hard slog of the peace process, are only going to be counterproductive to the peace process itself and to the ultimate objective of securing statehood, the objective that the Palestinian Authority, of course, has. So we have contested every effort, even prior to the restart of negotiations spearheaded by Secretary Kerry. Every time the Palestinians have sought to make a move on a U.N. agency, a treaty, et cetera, we have opposed it. By the same token, here, given this apparent move on a number of treaties, Secretary Kerry and all of us have made clear, again, that we oppose unilateral actions and that they are going to be tremendously disruptive and that they will not achieve the desired end. So that is the first point, I think which is in keeping with our traditional position. In terms of its impact on the peace process, which is a question you have also raised, I think what Secretary Kerry has said, and he is still--this is a very fluid situation. It just came about, as you know, yesterday. He is working it probably as we speak, certainly was working it all day yesterday and this morning. It is I think premature to make a final judgment on what impact this will have on the peace talks and on the prospects for a negotiated settlement. So I wouldn't want to prejudge that. As you mentioned, the Palestinians have pursued in this instance it seems treaty membership. We will need to see, again, what it is that they have submitted before being able to speak to what the ramifications are. So if I could just again continue to work with you in the days ahead. And then, finally, on the question of the U.N. waiver, as you know, the United States has pursued a national interest waiver, notwithstanding our strong and relentless opposition to unilateral efforts at enhancement of status and unilateral efforts at statehood. The reason that we have sought this waiver, and it is so critically important, is that in the event that the Palestinians seek and obtain membership in a U.N. agency, the last thing we want to do is to give them a double win. And it would be a double win for them to secure a win at an agency on the one hand and then the exclusion of the United States from that very agency, leaving the agency at the mercy of leadership from Russia, China, Cuba, Venezuela, the countries that tend to fill the space when we depart. So, again, our goal is to use the U.N. system to advance the interests of the United States and the American people. Being excluded from those agencies does not allow us to do that. And of course, and we can go agency by agency if you like, but you are as familiar with these organizations as I am, vaccinations for children, weapons inspectors in the IAEA, you know, the postal system. I mean, this is the international system, and it is strongly in the U.S. national interest to be a part of it. But that in no way detracts from the firmness of our opposition to Palestinian unilateral moves. Ms. Granger. Thank you. Before I go to Mrs. Lowey, I would like to request all the members of the subcommittee to stick to the timeline. I think this will allow us more than one round of questions. I will turn to Mrs. Lowey now. Mrs. Lowey. Thank you, Madam Chair. And again, welcome. I am going to move to another issue, but I just want to associate myself with the comments of the chair. As one who has been very optimistic about a potential peace process and has strongly supported Secretary Kerry's efforts and his determination to bring the parties together, it was extremely disappointing to me that Abu Mazen chose to take this action at the U.N. It is counterproductive, and doesn't move them closer to any final resolution. I think it was wrongheaded and very, very disappointing. And frankly, I wonder whether Secretary Kerry can save the process in light of this action. But let's move on to Iran for a moment. We understand that Iran now faces domestic pressure and international isolation. While I believe the pressure of sanctions and the demand for a better economy pushed the Supreme Leader to allow for the election of President Rouhani, I am not convinced there has been a change in heart. And I am very concerned about the perspective of the overall Iranian leadership. I remain concerned that the election of Rouhani and his subsequent charm offensive was nothing more than a political maneuver or a facade intended to break the unity of international sanctions by making Iran appear to be cooperative. We have every reason to believe and to question Iran's real intentions, given their track record and history of deception. So a couple of questions. Many people have argued in the Congress that the threat of additional sanctions is necessary to pressure Iran to stay at the negotiating table until we have an acceptable final deal. Can you share with us your opinion on that? Maybe I will just group these, because you are keeping the time pretty tight, and then you can respond in any way you choose. How will the Security Council respond if Iran does not agree to a final deal? The Secretary of State has said that no deal is better than a bad deal and I wonder what you would consider a bad deal. Now, one of my concerns, the preamble to the Joint Plan of Action states that under no circumstances will Iran ever seek or develop any nuclear weapons. So I have been very distressed to learn that the IAEA cannot inspect or gain access to Parchin, which has been rumored as the facility where they do weaponization testing. If you can comment on the whole deal and you can speak to why the JPOA does not allow IAEA to inspect the sites where delivery mechanisms are made, it seems to me that such sites are an integral part of nuclear capability. So if you can just comment in general, I would be most appreciative, and in specific on the Parchin issue. Ambassador Power. Thank you, Congresswoman. Let me just make a few comments if I can. You have certainly put your finger on some core issues. First, we share your skepticism. We share your lack of trust. There is no way that one can look at the U.S.-Iranian relationship over the course of the last three decades and bring anything other than great skepticism and a lack of trust. And I think that is the mind set that our diplomats have brought at every turn to our engagements with the P5+1 and, of course, with Iran. I think President Obama has been clear that in the event that these talks break down and this agreement does not provide a foundation for a long-term agreement that we believe will shut down Iran's nuclear weapons program and deny them the prospect of obtaining a nuclear weapon, as he has put it, he will be leading the charge up here for additional sanctions in order to impose further pressure on the regime. Right now, we are seeking to take advantage of a diplomatic window that, again, as the President has said, will not remain open for long. And, you know, talks are opening again, I believe next week, where Under Secretary Sherman I think is already on her way or will be soon. Mrs. Lowey. If I may just comment, and you can respond on the sanctions issue, because I know it has been an issue where there is a great deal of difference of opinion on the part of the administration. Ambassador Power. Yes. Mrs. Lowey. The $6 billion to $7 billion in sanctions could be reinstated in a nanosecond. But you and I know, and the administration knows, any additional sanctions can take 180 days to put in place. So I just want to add that for the record. Ambassador Power. Okay. Well, to underscore, again, that the overwhelming majority of sanctions remain in place and that the Iranian economy is still in the vice of sanctions put in place, not only here by the Congress and by the executive but also this crippling four rounds of multilateral sanctions that have come through the U.N. Security Council. And that international sanctions regime, which was your second question, has been a critical complement and force multiplier shall we say of what we have done ourselves here as the United States. So you asked where will the U.N. Security Council be? One of the reasons that it is very important that we keep the P5+1 together, which is not always easy but is critical, is that on the back end of, you know, either a comprehensive agreement at some later stage when all of our conditions are met or in the event of the collapse of talks, that we would then be in a position to act together at the Security Council. The other thing I want to say, because I don't think it is as evident because of all of the focus on the JPOA, is that we still have not only the robust multilateral sanctions regime in New York, but the sanctions committee, the panel of experts, you know, we are as a United States at the very same time we are engaging, testing this diplomatic window, seeking to end this what is a crisis diplomatically, we are enforcing the sanctions that are on the books and seeking to close any loopholes that may exist in this multilateral sanctions regime. I mentioned this because, of course, Israel just interdicted a ship that was carrying weapons from Iran to militants in Gaza. And that is something that we are now demanding that the sanctions committee take up in New York, and we figure out what the implications of that are. So, again, in addition to the additional bilateral sanctions that the--sanctions designations of individuals and entities that have happened since the JPOA, we in New York are also always looking to take further action on the basis, again, very crippling regime that exists. I am well over time, so let me just, maybe if I could, speak to the Parchin issue. The JPOA made clear that the P5+1 and Iran must, quote, ``work with the IAEA to facilitate resolution of past and present issues of concern.'' This is the formula that is used by the IAEA and Iran in addressing possible military dimensions, which is of course why you are so concerned about Parchin. And that includes Parchin. So what the JPOA says is that a comprehensive solution requires not just a final step, but also resolution of concerns, which is understood again to hit the military dimension. So the more plain English way to put it is that the interim, the JPOA addressed some subset of issues. We only offered very, very modest, reversible, and temporary sanctions relief in return. Parchin is exactly the kind of issue that is on the table now in terms of the longer-term negotiations. Mrs. Lowey. Thank you, Madam Chair. Ms. Granger. I will call on members now, alternating between majority and minority based on arrival time, as we have done before. I want to remind members that you have 5 minutes for your questions and the response. When you have 2 minutes remaining, the light will turn yellow. And again, I think this will allow us to have multiple rounds. We will call first on Mr. Diaz-Balart. Mr. Diaz-Balart. Thank you very much, Madam Chairwoman. Ambassador, thanks for being here. Let me start out, I would be remiss without first thanking you, and I have even written you a letter in which you responded very quickly, by the way, for I think in the administration nobody has been more forthcoming on support and solidarity with those who are struggling for freedom around the world. You have done so repeatedly on social media, which is crucial, whether it was, for example, during the CELAC issue in Cuba or the students in Venezuela who are trying to recapture democracy. You have been exceedingly forthright. And for that, as I did so in writing, I want to publicly do so now, thank you for that. Really three issues I am going to throw out really quickly. And let me just do that really quickly, and then you could respond. In March, a U.N. panel of experts provided a report to the U.N. Security Council concluding that the July illegal shipment of weapons to North Korea from Cuba in fact violated sanctions and constituted, by the way, the largest amount of weapons interdicted going to North Korea since the adoption of Resolution 1718 in 2006. I don't have to talk about all the details about that; they were clearly trying to hide it. So given the discovery of Cuba and North Korea's regime's willful, quote, frankly, collusion to violate U.N. sanctions, what action is underway to hold those two regimes responsible for violating--for obviously violating U.S. sanctions? Point number one. If I can then jump to Venezuela, where, again, like you have been in Cuba, you have been very vocal, very, very vocal. And by the way, you cannot underestimate the importance of those statements that you have been making on Twitter for those who are oppressed and repressed. That is a huge deal. I don't have to tell you about what is going on in Venezuela; you are very familiar. But what is the administration, or what can or are you doing specifically through the United Nations to bring attention to the, frankly, the horrible situation in Venezuela, where students are being arrested, where, frankly, one of the main opposition leaders has been in prison for over a month, and all of the human rights violations in Venezuela? And again, I encourage you, and I know you will continue to do your part publicly. But what is the U.N. looking at that and what can be done there? And lastly, to a fiscal issue that you talked about--and I think I still have a little bit of time--specifically concerning the issue of the peacekeeping funds. So the President's budget request is more than $800 million for peacekeeping in a new peacekeeping contingency account. Now, the concern is that the assessed rate for the United States continues--it continues to rise above what is, frankly, authorized by U.S. law. So then, meanwhile, the U.N. approves new and expanded peacekeeping missions that are, frankly, very costly. And then we don't see a lot of reductions or proposals for the elimination or reduction of missions that have been around for decades, for example, such as the one in the Western Sahara. So there, what is the administration doing to reduce or to eliminate, hopefully, outdated U.N. peacekeeping missions? Why should the committee, this committee, support a contingency fund when there is very little, frankly, if any discipline being shown in budgeting for those peacekeeping missions, current peacekeeping missions? And what is being done to help bring, again, a resolution to some of those, specifically, for example, like the Western Sahara? So, Ambassador, I know I threw a bunch of issues out there. I apologize for that. But we have a very strict chairwoman, and so we try to be very cooperative with her. Ms. Granger. And that color is yellow. Mr. Diaz-Balart. Exactly. Ms. Granger. I want to point that out to you. Mr. Diaz-Balart. I know my place, Madam Chairwoman. Ambassador Power. Given how important each of the questions are, I am very nervous about the 54 seconds I have left to answer them all. Ms. Granger. Do the best you can do. Ambassador Power. I hope the chairwoman would give me just a little bit of indulgence so I can at least seek to do some justice. I suspect the issue of the fiscal climate and the peacekeeping funds will come up and will be raised by other members, so maybe I can elaborate in greater detail. Let me start with that, if I could. You rightly note that the peacekeeping requests that we are making, or the peacekeeping funds we are asking for, we are asking for more this year than we did last year. That is owing to a couple key issues. The first is Mali last year occurred after our regular budget cycle. By Mali, I mean the takeover of two-thirds of the country by violent extremists. And as a result, part of what we are asking for here is funding to make up for a mission that was authorized outside the regular budget cycle. But the other reason is that South Sudan tragically, devastatingly, has degenerated into a horrible ethnic conflict just since December of this year, and we have had to expand the number of peacekeepers in South Sudan. In addition, although it is not actually reflected in the President's budget request because this has just come on, we are going to be requesting funding, as the chairwoman indicated in her opening statement, for the Central African Republic for a peacekeeping mission there in all likelihood. And this is something we are just beginning to consult with you all on. And again, at some point, I hope I will have a chance to speak to the devastation of what is happening there. But you are right, it is not enough to simply say the real world is presenting these emergencies and we have to respond to them, because we live in a fiscally challenged climate. And so what we have done over the course of the last 5 years, and I was actively involved in this when I was working at the White House as the President's U.N. adviser, we have brought down the costs per peacekeeper. The cost now is 16 percent lower than when it was when we started seeking costs. So, again, the pie is bigger because of the real world emergencies. You only have to read the newspaper to see that the world is presenting successive challenges to us. But per peacekeeper, we are bringing down the costs. And that, you know, has involved eliminating duplication. Again, I won't go into the details here, but I hope we will have a chance to elaborate on some of the measures we have taken. We just last week closed down the mission in Sierra Leone. In my opening statement, you heard me say that these peacekeeping missions, many of them we find essential, but they need not be eternal. And I think there is a habit, sort of once a mission gets set up, to not be sufficiently assessing the original reason that the Congress and the U.S., you know, came to support a mission and assessing whether that mission is appropriately configured given the evolution of circumstances on the ground. There are reductions happening, but in a responsible way, in Haiti, Liberia, Ivory Coast, I think where tremendous gains have been made. And again, I can speak more to that. On Venezuela, we have a responsibility, of course, as the United States, to speak up on behalf of those who are seeking their freedom. And I really appreciate the tremendous leadership you have shown, always, in standing up to repressive regimes. I think nearly 40 people have been killed in these protests, these peaceful protests where people are airing their legitimate aspirations and their legitimate grievances. You mentioned the criminalization of dissent. That is something, again, we have been outspoken about. We have called for a third party to get involved in mediation in some fashion, because it is in everybody's interests for this crisis to end. But that third-party mediator needs to be credible to both sides. And that, until recently, had been a sticking point, but a little progress I think has been made on the mediation. At the U.N., at the Human Rights Council, we issued a joint statement on Venezuela, enlisted a number of countries to join us. It will not surprise you that, given that the U.N. is filled--more than half of U.N. member states are nondemocratic, it is not always easy for us to pull together the kind of coalition of the willing, shall we say, within the U.N., a cross-regional coalition. But that is what we seek to do. We seek, even if we can't get overwhelming vote counts, we seek to create kind of alignments of people who share the same democratic values speaking out on behalf of Venezuela. I would welcome any ideas you have about further steps that we can take within the U.N. system. And I agree that it is incredibly important to raise it there and to multilateralize the human rights concerns that are at the heart, meant to be at the heart of the U.N. charter. Lastly, if I could, just on the DPRK and Cuba sanctions violations, we--there are sort of a lot of very bureaucratic things I can say about the things we are doing at the U.N. on this particular case. It was the largest arms seizure. We are very grateful, and thank Panama for stepping up and meeting its responsibilities, as it is doing in a remarkable way really across a whole host of issues, including Venezuela. We have, through the Sanctions Committee, issued a public--or sought to issue a public implementation assistance notice to share lessons learned with member states and correct Cuba's claims about how they are interpreting the UNSCRs. And the report that came back was very strong. It basically rejected the Cuban arguments, which we felt was very important again and, given that U.N. reporting can sometimes be uneven, is important to stress. We are seeking to impose sanctions on entities we can prove are responsible for the violation. This is challenging, because U.N. sanctions, of course, come by consensus. And so we will need to get China, Russia, and other members of the Security Council to come along board. But that is a work in progress. And we are seeking to release publicly the panel of experts incident report, which again we think rejects frontally Cuban and North Korean claims on this issue. Thank you, Madam Chairman. Ms. Granger. Thank you. Ms. Lee. Ms. Lee. Thank you very much for this hearing. Ambassador Power, good to see you again. In my role as one of the congressional representatives to the United Nations, yesterday I had the pleasure of leading the Congressional Black Caucus (CBC) delegation to the U.N. Thank you so much for meeting with us. We were very happy to meet with U.N. officials to really get a good handle on the importance of American leadership in the United Nations, which we all agree is so important. Secondly, just as descendants of the transatlantic slave trade, current day simple human rights issues of discrimination both in our own country and abroad are very important to members of the CBC. And so we want to thank you very much for your support for human rights and civil rights, minority rights throughout the world. The United Nations is a critical body in our world community. And we believe we must fully engage--at least I know Members of the Congressional Black Caucus believe we must engage in the United Nations and the international community to ensure a safer world. And we get a huge bang for our buck with the United Nations. A couple of things I want to ask you, though, which I am recently learning about, and that is our dues. Now, given the nominal increase in funding for the United Nations' peacekeeping missions next year, it was pointed out that the bill, the omnibus bill underfunded significantly our peacekeeping commitments. By some estimates, we have come up with about $350 million short, which again puts us in many ways in an arrears position. So could you explain this, how this peacekeeping dues, the formula by which it is put together, and how does being in arrears really affect our ability to pursue our interests at the United Nations? Secondly, the Convention on the Rights of People, Persons with Disabilities, inspired in large part by our Nation's own landmark disability laws, I can't for the life of me understand why we would not, or why the Senate would not pass the treaty, the Convention on the Rights of Persons With Disabilities. So we need to know why this is so important to support disability rights around the world so we can--I don't know if we can figure out a way to move on this or not from this side. But I think hearing about this and having this on record is extremely important. South Sudan. The Security Council's decision to deploy reinforcements, of course, will enhance the ability to carry out a civilian protection mandate. So can you discuss the U.N.'s efforts to ensure the safety of displaced civilians who have sought refuge at United Nations compounds over the last several months? And then, of course, Afghanistan. What is the U.N. role going to be after 2014, if any? Could you explain that? And thank you again very much. Good to see you here. Ambassador Power. Great. Thank you. Let me start, if I can, where you started, which is on the peacekeeping issue. And that allows me to add a little more ballast to the response I offered the Congressman. I mean, first, your point, peacekeepers are going places and protecting civilians and combating extremism so we don't have to. And it is incredibly important for us to bear in mind that, for instance, when Mali gets taken over by extremist groups and militants in the way that they were--the French of course staged an intervention, and the African Union initially stepped up in really important ways. But in order to consolidate those gains and ensure that militants remain vanquished, we have to support U.N. peacekeeping. That is what those peacekeepers are there to do. In South Sudan you mentioned the effort to protect civilians who are gathered in U.N. bases. South Sudan is a country, newly independent country, has a historic relationship with us, with, you know, college students around the United States. Even high school students now are exercised about the plight of people in that country. The United States led the effort with many people here on this committee, including you and Frank Wolf and virtually all of the members, to bring about this country. And now it is the United Nations that is there at a time when we are winding down our mission in Afghanistan and of course have ended our mission in Iraq. It is incredibly important to U.S. interests that peacekeepers be doing that work. The gap between what we owe the U.N. in terms of peacekeeping and what was appropriated I think is explicable in a couple ways. One, I mentioned already the Mali mission came on the books after our regular budget submission. But second, our assessment rate now is 28.4 percent. And there is a cap, and that I would appeal to this committee to lift, that only allows us to pay a share of 27.1 percent. And again, I think reflected in a number of the members' comments so far, the reason we don't want to pay more is we are paying an awful lot. And that makes a huge amount of sense. The formula on which this percentage is negotiated is based on an ability to pay. And I have made it a huge priority up in New York to try to ensure that others are paying their fair share. In the recent scales negotiations, which were before my time, where our assessment went up from 27.1 to 28.4, Russian and Chinese assessment rates also went up. Our challenge with some of the emerging economies, the Brazils and the Indias, which have also gone up marginally--in Brazil's case, actually, quite substantially--is that this formula is calculated on the basis of per capita GDP and debt burden. So you get a discount if you are a country that is growing but has still huge amounts of poverty that you deal with in your country. Now, we are seeking to change that methodology. But the next scales negotiation is in 2015. And while, again, it is-- the 28.4 percent is not ideal; we prefer to be at 27.1 percent. We are going to fight to get it back down. It has been much higher in the past. In the 1980s and 1990s, it was at 31 percent at various times. So we are significantly lower than we once were. And we are trying to find savings within the peacekeeping missions that exist. But I would ask you if you could lift the cap in order to give us the resources we need to fund these really, really important missions. And please know that I will work with you hand in glove, again, to try to bring this back down. On your other questions, briefly on the disabilities convention, the great champion of this is Senator Bob Dole, who has made this his great passion. And for him, the fact that veterans come home from war in Iraq and Afghanistan, so many more veterans now suffering the loss of limbs and so forth, and rehabilitating here, and getting to take advantage of the ADA, and the accommodations that we have here in this country but then, in effect, being told that the protections end at the Nation's shore, that while your able-bodied counterparts can imagine jobs overseas, the ADA extends only across the continental U.S. And in a global marketplace, that is not fair to our vets. It is not fair to our persons with disabilities generally. So what this convention would do is simply allow the United States to be party to an international convention that enshrines the provisions of the ADA. And as a party to that convention, we would then press other countries to bring their standards up to ours. And it is critical for us to be a part of that convention in order to show real leadership on disability rights. It has strong bipartisan support in the Senate. And we are still working, again, with Senator Dole, Senator McCain, Senator Barrasso, Senator Ayotte, and of course the Democratic supporters, to try to bring about ratification. Lastly, on the U.N. role in Afghanistan, forgive me, Congresswoman, there is a lot here, I would say a couple things. First, it is clear that the U.N. will likely maintain a political presence. They have a critical human rights monitoring role. And we are seeing right now the centrality of the U.N. in supporting the Afghan-led election process. And those are all things that don't cease to be necessary, you know, in the wake of any U.S. drawdown or even eventually when, you know, all troops--all American troops are out of Afghanistan. Because President Karzai has not signed the BSA, the President has not made his decisions about what the U.S. troop presence is going to look like after this year. And I think the U.N. is waiting to understand that better. We have seen, just with the monstrous Taliban attacks that have occurred in the last few weeks, in addition to all those that preceded those attacks, just how precarious the security is, particularly for civilians, who are trying to aid the Afghan population. So that is a challenge. Thank you. Ms. Granger. Thank you. Mr. Crenshaw. Mr. Crenshaw. Thank you, Madam Chairman. Welcome. Let me ask you, we talked about the fact that we spend a lot of money on the U.N., and over the years, there has been an awful lot of efforts in Congress to bring about reforms to the U.N. And one of the kind of glaring dysfunctions of the U.N. is the U.N. Security Council. It is supposed to bring peace and security on an international basis, but it doesn't seem to always work that way. If you look at Syria, the efforts to end the conflict there, I think there have been at least three times where China and Russia has vetoed efforts to do that. And so you wonder how it can meet its goal when its permanent membership is divided. So I would ask you two questions. One, do you think that, to a certain extent, the Security Council has lost a little bit of its credibility, maybe lost a little bit of its legitimacy? And if so, is there anything the U.S. can do to help it regain that? Because the second part of that question is if you look at the other side, it seems like just about every veto that we have put forward in the last 25 years is vetoing some condemnation of Israel. Israel doesn't get treated very well. I know you have been working hard to see that Israel gets fair treatment across the board in the U.N. So take those two things and talk about that: A, what kind of reforms might be brought, either through the U.N. Security Council or even in a broader sense; and B, how you feel like you are doing in trying to make sure that Israel gets treated fairly in the U.N. Thank you. Ambassador Power. Thank you, Congressman. And thank you, generously, for leaving me 3 minutes to answer your questions. Let me say about the Security Council that you have put your finger on it. When the permanent members, particularly Russia most recently, backed by China, decide not to fulfill their responsibilities under the U.N. charter to enforce international peace and security because they are a veto holder, that leaves the council vulnerable. And there is no question that the council's legitimacy has suffered greatly not to be responding to the humanitarian catastrophe in Syria and the profound threat to international peace and security when you have millions of people spilling over into neighboring countries, many of which are fragile, like that in Iraq and Lebanon, and when you now see also foreign extremists take root, you see a regime brutalizing its people using barrel bombs, chemical weapons, Scuds. You know, the fact that Russia can use its veto in circumstances like this really reflects a vulnerability, as you say, in the council structure. And we have had to work in other ways. Working through the Arab League, working through the Human Rights Council, which, as you know, is very problematic on issues related to Israel but has created a commission of inquiry that has produced really important reports for Syria that will be used some day in some form of accountability to hold the perpetrators of these, again, horrific crimes to task. So we have had to do workarounds on Syria. On chemical weapons and recently on humanitarian issues, we did manage to get two resolutions finally through the Security Council. And on chemical weapons, we have seen, as you know, just 50 percent of the weapons removed. The deadline for the overall removal operation is not until June 30, but the Syrians are missing a number of milestones along the way. So we are very concerned about the pace of removal and elimination. I would say Russia has worked more constructively, clearly because it sees its interests as imperiled, first because of the threat of force that hung over Syria back in August and September, but also because of their concern that chemical weapons will fall into the hands of terrorists and so forth. So we can still see that Russia a la carte can choose to see its interests engaged in ways that coincide with ours on Syria. But by and large, on the humanitarian situation, though we did get a resolution recently, there is not nearly the same energy put into enforcing that resolution. And we are seeing very disappointing results on the ground, which, again, I can speak to later. What I would say, though, is that in complementing or at the very same time we are seeing this, as you put it, dysfunction on Syria--and obstructionism might be a better word on the part of Russia, because there is more accountability in that--we are also seeing the Security Council go about its business and do really important work. We just in the midst of the Ukraine crisis passed a resolution granting for the first time the international community the authority to interdict stolen oil that ends up on the high seas from Libya. And the U.S. Special Forces did a heroic job retrieving some of that oil. But this is a phenomenon that could persist, and Russia went along with that. We are renewing mandates and enhancing mandates for peacekeepers in Congo and expanding the mission in South Sudan in response to the situation on the ground. So the council is still doing very important work for the U.S. national interests, but of course, the vulnerability is there because of Russian obstructionism. Ms. Granger. Thank you. Ms. Wasserman Schultz. Ms. Wasserman Schultz. Thank you, Madam Chair. Ambassador, it is good to see you. I will try to ask my questions in a compressed way also, so you can have most of the time to answer. I want to focus more on the Palestinians' pursuit of statehood or recognition by U.N. agencies. And understanding that our policy is that we withdraw from those agencies and cease funding when a unilateral action is taken like that, how can we--if you could walk us through your thoughts on how, perhaps, a unilateral approach to that concern, which is obviously a very significant concern, may not be the best strategic approach for us. You know, instead of maybe a focus in an a la carte way, to use your term, like with the ICC and/ or the IAEA, if we were going to try to leverage our participation in a way that is, you know, a more microtargeted approach to respond to wildly inappropriate actions, like the Palestinians. The other issue is on Israel's treatment in general at the Human Rights Council and our ability to leverage our membership in the Human Rights Council. What are we doing to get the Human Rights Council--how are we using our membership to get the Human Rights Council to stop it almost exclusively focusing on their obsession with Israel and actually focus on very significant, serious human rights abuses in Syria, and Iran, and Venezuela, and Cuba, just to name a few? Then just a couple of others. On humanitarian assistance, you know, it has been for the entire existence of the United Nations that we have essentially shouldered the burden of financing much of what it does. How do we encourage more cost sharing from, you know, wealthier countries that actually have the ability to step up? And how can we use U.N. Security Council 2139 to encourage other donors to do that, particularly rich Gulf nations, for example, that have the resources but choose not to use them? And then, lastly, if you could just cover the issue of U.N. reform, because I know the United States' position is that reform and economy, accountability, integrity, and excellence are all essential. So what are we working on in that regard? Ambassador Power. Thank you, Congresswoman. I mean, on the Palestinian question, I just would underscore that we will oppose attempts at upgrades in status anywhere. We are in very close touch now. We have a monthly meeting with the Israelis where we look out at the sea of international organizations and U.N. entities, including treaty bodies and treaties and so forth, and coordinate with them, and also try to understand whether they are prioritizing in particular ways, sort of along the lines of what you are suggesting. The ICC is, of course, something that we have been absolutely adamant about. Secretary Kerry has made it very, very clear to the Palestinians, as has the President. I mean, this is something that really poses a profound threat to Israel, is not a unilateral action that will be anything other than devastating to the peace process, which is, again, where all of our efforts should be placed right now. Before the peace negotiations started between the two parties, restarted with Secretary Kerry's and the President's leadership, we were fighting on every front. Contesting unilateral efforts on every front. And that is what we would do in any event, because we don't think that this is a productive approach. We don't think there are shortcuts. And we know that these--that this can be an effort to delegitimize Israel at the same time it is an effort to upgrade Palestine status. I think my point on the waiver and the funding issue is that the American people and the United States are so much better off when the United States is in good standing within these organizations, defending our interests, fighting for our friends, and not surrendering the playing field to those that would like nothing more than for the United States not to be in these organizations. So we are not punishing the Palestinians if we cut off funding to these agencies; we are punishing U.S. interests. And that is why, again, we need to deter precisely the moves that are at--the spirit behind the legislation is to deter Palestinian action. That is what we do all the time and will continue to do. But we cannot surrender the vast range of U.S. interests in the process. Very briefly on the humanitarian assistance, the cost sharing, I will just touch upon that since it hasn't come up before. The Kuwaitis have been the ones in the Syria context who have hosted the last two donors' conferences. And we think this is progress and an example of the kind of leadership--and they have really shown tremendous leadership on the humanitarian situation. We seek to mobilize resources from the countries that you have alluded to. And you have seen emerging economies, you know, like Brazil and others, make contributions in a new way in light of, again, the scale of the catastrophe. But we still think there is a lot of room for others to be doing their fair share, and particularly those wealthy countries in the region, a region that stands to be very destabilized, again, by the effects of this crisis. Ms. Granger. Mr. Yoder. Mr. Yoder. Thank you, Madam Chair. And Ambassador, thank you so much for joining us today. And there are so many topics to cover and so little time. And we appreciate the work of all of our diplomats and leaders around the world. And thank you for your leadership. Certainly, we talked about Syria and North Korea, Russia. Continuing to be I think perhaps on a lot of our minds is the nuclear threat from Iran. I know you have spoken about that this morning on several of the questions. I have some specific questions for you I would just like to get your thoughts on as we as a Congress look at what our future foreign policy should be. As we come back to the Iranian nuclear desires, I know we are in a diplomatic mode now. Should those diplomatic efforts fail, is military action still on the table if Iran does not abandon its nuclear program? And how are we articulating that today? Would that military action require U.N. Security approval to move forward? Would you seek--and I know we are dealing in hypotheticals. I need to articulate this well, but not damage any current efforts. So I respect and appreciate the way you are going to have to try to articulate your answer here. But would you seek U.N. Security approval? And would the country be willing to move unilaterally without that approval? And did the United States' war and action in Iraq require U.N. Security approval? Do we believe that that did in retrospect? And then the second topic, the administration has called for certainly a reset with relations in Russia in past years. What can we do to successfully deter Vladimir Putin going forward? What does the new reset look like? What are your thoughts just generally moving forward? And how do we reset those relations again? Because clearly that didn't work as successfully as probably anybody liked. And then you were in the White House and witnessed the struggle in our country over the murder of our ambassador in Benghazi. That continues to be a very big topic in this country and certainly before Congress regarding what the United States did to prevent that attack, statements following the attack from our then ambassador on what may have led to the attack. And so I guess just seeing that firsthand in the position you were in, and now you are the new United States Ambassador to the U.N., what have we learned? And specifically, what are we doing differently with security? And how would we treat something like this differently in the future? Ambassador Power. Okay. Thank you so much, Congressman. Let me--as you anticipated, it will not shock you that I am not going to engage in hypotheticals. So I think it is more appropriate simply to describe generally the President's position, which is that, even today, he has taken no option off the table as it relates to Iran. Consistently, he has made clear on any issue that if America's vital national interests are at stake, he is going to act to protect the American people and our vital national security interests. And what that means is that in the event that the Security Council does not accommodate his need to lead and perform his duties as the commander in chief, he is still going to pursue what he deems the right policy on behalf of the American people. In terms of the retrospective question you asked, again, I don't think it is appropriate for me here in my current role to be going back over decisions that were made. What we are focused on at the U.N., but across the administration, is trying to shore up the security situation in a country that, unfortunately, in recent months has really taken a turn for the worse in terms of the penetration of terrorists, the seizure, as you know, by terrorists of Iraqi towns, towns that very brave Americans expended, made great sacrifices to try to secure for the Iraqi people. So we are focused, the U.N. Special Representative there is working hand in glove with our embassy to try to defuse that crisis, to try to ensure that the coming elections go off without causing or provoking or being accompanied by more violence. That is our emphasis on Iraq. On Putin, I would just say that the steps that have been taken even just since the so-called referendum in Crimea, and the so-called annexation, which we reject, and which the United Nations has rejected now in an overwhelming way, the steps that we have taken have already had an effect. You are seeing investor confidence plummet. You are seeing the ruble depreciate. You are seeing investors recognize that if there is not a climate of rule of law in Russia, and clearly taking over part of someone else's country doesn't exactly reflect a respect for the rule of law, whether domestic or international, that that is a very perilous market environment. And so, again, we do believe that this economic and political isolation that President Putin has chosen for himself is going to have an effect. And we are, in addition to that, of course, supporting, thanks to the House vote and the Senate vote on this issue, robust financial assistance for Ukraine so that, you know, X number of years from now, we see a prosperous Ukraine that is thriving, that is not forced to choose between East and West, and where the people see the benefits of the kind of economic integration available to those countries that play by the international rules. Ms. Granger. Thank you. Mr. Schiff. Mr. Schiff. Thank you, Madam Chair. Welcome, Ambassador. At the outset, I want to just express my support for that flexible funding mechanism for U.N. peacekeeping missions. Regrettably, given how unstable the world is right now, it is not a question of whether we will need to support such operations, only where. And I would much rather make that kind of investment than have to either have American boots on the ground or suffer the effect of total state failure and collapse and all the related risks that we ultimately face as a result of those failed states. I want to direct my question to Syria. Syrian civil war has claimed the lives of at least 150,000 people, one-third of whom are civilians. The Syrian Observatory for Human Rights announced yesterday millions more have been forced to flee their homes to neighboring Jordan, Lebanon, Turkey, and even Iraq. And millions more have become internally displaced, their faiths hanging on the ebb and flow of battle. While all the Syrian people have suffered from fighting, it is minority populations, and especially Syrian Christians, who are most at risk. As you know, Ambassador, these are some of the oldest Christian communities in the world, dating back to the first century AD. About a week ago, the town of Kessab, which is predominantly Armenian Christian, was attacked by Al Qaeda- linked fighters who had crossed over from Turkey, and the town was emptied in a bloody assault. Many of the residents of Kessab are descendants of the victims of the Armenian genocide. And there was a particular poignancy to their being targeted in this manner. Can you tell us what efforts the U.N. and its agencies working in and around Syria are making to safeguard Syrian minority communities? My understanding is that many of them are resistant to seeking refuge in UNHCR and other NGO facilities out of fear for their safety and are thus more likely to be internally displaced persons. Also, is the Kessab issue in particular and minority issues generally on the agenda in New York with reference to Syria? And finally, is there any diplomatic movement at all in resolving the Syrian conflict? Or is Assad so confident of his military advantage now that any hope of a diplomatic resolution is essentially gone? Ambassador Power. Thank you, Congressman. First, on the peacekeeping response mechanism, thank you for raising it. And let me just say a word on that, knowing that not all may think it is the best idea right from the beginning. This mechanism comes about because what we have gone through in the last few budget cycles, where real world exigencies, like that in Mali or now potentially in Central African Republic, arise after we submitted our budget. You know, the bad guys in the world are not responsive to our budget cycles. And we are trying to prevent the rise of extremism, protect civilians, you know, meet humanitarian needs. This is not something where the money would be spent on anything other than the kinds of emergencies that this committee, subcommittee, and the larger committee have expressed and proven their support for over the years. And one of the things that we would be very eager to discuss with you is how could we create some kind of consultative process where you felt at the heart of the decisionmaking around the use of such a mechanism? But we are finding ourselves--our decision space shrunk in New York when a crisis arises because of the prior year's cycles. And if you look at refugee funding and so forth, they have found a way, because refugee flows also are unpredictable, to embed, I gather, within refugee programming a little bit of flexibility, again, allowing for the kind of consultation that could allow real world emergencies and real world peacekeeping missions, exigencies to secure funding in a nimble way. On Kessab, it is an issue of huge concern. And the broader fate of minorities and all the Syrian people is of pressing concern. In terms of what the U.N. is doing about that particular--the takeover of that particular town, the Security Council has met recently, I believe it was just--I have lost track of time with my preparation for this hearing--but I think it was late last week on Friday, where we discussed the humanitarian situation in Syria generally. And most of the council members raised the issue of Kessab, calling on the U.N. to do more to try to meet the needs of these people. This was in a closed consultation on the humanitarian situation in Syria in compliance with the humanitarian resolution. I would note that, unfortunately, the extremist group that appears to have taken hold of that town is not one that the United States or the United Nations has a huge amount of leverage over. And so our emphasis now is on supporting the moderate opposition in Syria that is taking on those extremist groups and making sure that the U.N. has the funding it needs, and the resources of all kinds that it needs to accommodate refugee flow along--or IDP, in the case of the Syrian Armenian community, and, as you say, an internally displaced flow. So it is resources. It is strengthening the moderate opposition, which is taking on ISIL, the very group that appears to have taken over that town, making sure that none of the neighbors are giving support to terrorist groups or extremist groups, which would aid their efforts in seizures like that, and going on a funding drive internationally, because only a very small percentage of the U.N. funding appeal for Syria generally has been filled at this point. Ms. Granger. Thank you. Mr. Dent. Mr. Dent. Thank you, Madam Chair. Good morning. And following up on Mr. Schiff's question with respect to Syria, that the U.N. Security Council has demanded that the Government of Syria and opposition groups allow humanitarian aid to be delivered. The Secretary General's report last week made it clear that the Syrian Government is violating the Security Council resolution I believe adopted in February. The administration is also on record that the Syrian regime is in violation of the Security Council's demands. And many of my constituents think, and I mentioned that I have the largest Syrian community of any other Member of Congress in the country, support helping the Syrian people. And this subcommittee provided a significant amount of funding and an increase for humanitarian aid to help meet those particular needs. What will the United States and the U.N. do to ensure that aid can get to the Syrian people? That is my principal question to you right now. Ambassador Power. Well, the first thing we sought to do was to get Russia on board with a humanitarian resolution that included in it a list of very specific demands, which capture at least some, again, of the spirit of your question: a demand to lift named besieged areas; a demand to allow cross-border access so that food could go across borders, potentially reaching up to 3 million or 4 million people who have not been reached to this point or are in so-called hard to reach areas; demanding the end of the use of barrel bombs, et cetera. And although the Russians and the Chinese had vetoed three resolutions on things roughly related to the humanitarian fate of the Syrian people, in February, they finally came on board and supported a strong resolution. That was a resolution also that threatened further steps in the event of noncompliance. And now because of the noncompliance you allude to, I mean, really just a drop in the bucket compared to the set of demands I have just laid out, we are consulting with our partners about what further steps that we can take, recognizing that Russia's history on this issue does not leave us wildly optimistic that they would be enthusiastic for another Security Council product, but still needing to follow through on the commitments we have made. What the U.N. on the ground is doing is seeking to leverage this revolution in tactical ways. And what they can report is-- here or there--having this resolution has allowed them to get through one cross-border checkpoint that they weren't able to get through before, a lot of bureaucratic fixes, more visas, a committee set up by the government. But it is nowhere near sufficient to deal with the needs of the people on the ground. And I will say that in addition to regime obstructionism, which is by far the primary culprit here in terms of noncompliance with the resolution, the fact of the terrorists and extremist groups in Syria has not made this task easier for the U.N. Mr. Dent. Also, I just want to ask, too, since you mentioned the Russians, Ukraine. Anything that can be done at the U.N. outside the Security Council at this point? Because the Russians, obviously, will veto anything we would attempt to do to be helpful. What can be done at the U.N. to help provide some assistance to the people of Ukraine right now, again, outside the Security Council? Ambassador Power. That is exactly the approach we take. When we see that the Security Council is blocked, we look for alternative U.N. venues within the broader U.N. family. And I think there are two that we have made use of so far. And we need to look at other mechanisms. The first is we had a very strong, surprisingly suspenseful vote on Ukraine status and on the legitimacy and the legality of the referendum last week. I say it was suspenseful because a roughly analogous vote on Georgia that had occurred back in 2008 passed by an account of 14 ``yes'' votes--I think I have the numbers roughly right-- 12 ``no'' votes, and 105 abstentions. Whereas, this vote, we got broad cross-regional support. A hundred people voted saying that this referendum has no legality, no validity, and will not be respected. And only the Venezuela, Sudan, Syria, DPRKs, et cetera, voted with Russia. So it was a very, very strong vote. And it has real legal consequences, because now legally, the U.N. finding, as it were, is that that referendum was illegitimate. The other place I think we can make a big difference through the U.N. is in monitoring. And the Secretary General has now sent a team of 25, 30 monitors to Ukraine, principally deploying in Eastern Ukraine and places that we are concerned about the Russian buildup. That is alongside an OSCE monitoring team, which is both doing election monitoring and human rights monitoring as well. Mr. Dent. I see my time has expired. Can I submit a question for the record with respect to Israel? Ms. Granger. You certainly can. If we all stick to 5 minutes, we can do another round. Mrs. Lowey. Mrs. Lowey. Okay. As we are wrapping up this hearing, given the turmoil in the world, given the public's questions about what is happening in Syria, what good is the U.N., what is happening in Iran, I could go on and on, and we have mentioned so many of the trouble spots, I thought I would give you an opportunity in summing up. How does U.S. involvement in multilateral institutions, such as UNICEF, UNFPA, help in solving global challenges? What benefit is there to the United States in participating in these institutions? Why is participation in the U.N. in our national security interests? And how is your office continuing to work toward updating and increasing the efficiency and transparency of U.N. operations and management practices? How does the U.S. oversee the operations of the United Nations and other specialized agencies? How are results measured and evaluated? Ambassador Power. Thank you. Mrs. Lowey. So make your case for why we should continue to support the United Nations. Ambassador Power. Okay. Well, let me start by noting that we go to work every day recognizing that this is not a perfect body. It is a body filled with 193 governments. And we all know that governments are challenging creatures, and that not all of us, you know, every day execute in just the way that we would seek to execute. When you combine that fact with the fact that half the U.N. member states are again nondemocratic, it gives you some insight into the scale of the challenge sometimes. But there are vast regions of the world, and it feels like ever more, sadly, where civilians are being targeted, where women are being subjected to horrific sexual violence, where children are being recruited as child soldiers, where terrorists and extremist groups are seeking to spread their bile, shall we say, and recruit others to their cause. And we, the United States, do not want to be in all of those places. And yet the American people have made clear their longstanding generosity, their humanitarian impulses, their solidarity with the victims of sexual and gender-based violence, with child soldiers, with the victims of a tsunami or any kind of humanitarian catastrophe. America always stands up and steps up first. And often it is the American people doing so through private charities right alongside the contributions they make through this subcommittee and the committee and the Congress. So we don't want to be deploying our troops around the world to be dealing with every crisis of the nature that I have described. While we pay a good healthy share of the U.N. budget in terms of humanitarian assistance, peacekeeping, the regular budget of the U.N., it is the other countries of the world that pay three-quarters of the budget, by and large. Particularly when it comes, again, to the U.N. regular budget and peacekeeping, it is other countries that pay 71 percent. And it is in our interest to pool the resources of the world to deal with these crises. I give you just a few examples. I think the peacekeeping mission in Mali, where terrorists and extremist elements had virtually taken over that country, and with the U.N.'s help, led by the French, the Africans, the United States pushing to roll back those extremists, Mali now has a chance. And that is a chance not only for the people of Mali, which I think we would of course support, but it is also a chance to wipe out a threat that at some later stage could have come home to roost for us. Somalia, a place that was almost a poster child for state failure now has an actual chance. They are building a government. The African Union has provided troops. We have helped support that, again, thanks to this committee's flexibility. And Al-Shabaab is on the run, and the people of Somalia have a chance to live in dignity and some security. Again, it is not a perfect security situation. It is going to take a very long time for the state to be fully recovered there. But that is another example, again, where we don't want to be sending U.S. forces to Somalia, and we want other countries to be doing their share. We have spoken a lot about Iran today. The sanctions that we have gotten through the U.N. Security Council are a force multiplier. You can see through the Iranian sanctions regime--and again, we will wait and see what happens in these negotiations. Nobody is trusting that we are going to be able to get where we need to get. But the reason we are in the position we are in is because of how biting that multilateral sanctions regime is and that every country in the international community is bound to those sanctions. That is the force of doing things through the United Nations. Ms. Granger. Thank you. Mr. Yoder. Mr. Yoder. Thank you, Madam Chair. Ambassador, in our last round of questioning, I had a third question that we didn't get to, so I thought I would just give us a chance to answer it. Hopefully, it won't take the full time. The question is on the lessons learned from Benghazi. And I know there are a lot of oversight committees and there are a lot of investigations going on, but for our purposes today and where we are looking at putting dollars forward and where we finance operations I guess, given your position in the White House during the Benghazi crisis, I wanted your thoughts on what we could have done differently, what we have learned from it, and how as a Nation we can move forward to ensure that it never happens again. Ambassador Power. Thank you, Congressman. I guess what I can speak to probably best, or at least most knowledgeably, is what I can see in the government in terms of the precautions that we now take and how we are operating. And again, there are other individuals in the government who would be more expert at precisely what accommodations that we have made and what resources we are deploying where. But, you know, I have at least some visibility into the extent to which every mission is being scrutinized to make sure that our diplomats who are out there serving the American people--in the case of Chris Stevens, one of my real heroes in the government just by the way he chose to operate. I mean, he was always at one with the people, always reaching out, you know, in the Internet cafes, and trying to be out there, really hearing from the Libyans how they saw their future. And it is tragic that in the wake--it is tragic that we no longer have Chris, one of the great human beings and great diplomats that this country has ever seen. And it is tragic that an attack like that, unfortunately, has us needing to, in particular in dangerous places like Libya, to curtail that kind of interaction. And we had already in the wake of 9/11 beefed up our embassy security of course all around the world. And that had big resource consequences, which you are well aware of. And now we have done, you know, of course another overlay on that in order to make sure that the President and the Congress and the American people are satisfied that our diplomats who are risking their lives every day, just as our soldiers are in some of these very dangerous environments, have the protection they need, and that they know that when resources are needed, that we can come up and work with you and make those resources available. You know, we have a budget ceiling that we are all operating under with the Budget Control Act. We are trying to do a lot internationally with less, because the costs of beefing up those missions and enhancing that security is, of course, substantial. So as we, you know, rightly, again act responsibly fiscally, and set limits on our spending, you know, I do want to note, even though our peacekeeping budget request here is increased for the reasons that I have described, we are finding cuts across the department and in USAID in a way that we can both accommodate real world emergencies along the lines that I have described but also the need to make sure that our diplomats are safe. Ms. Granger. Thank you. Ms. Wasserman Schultz. Ms. Wasserman Schultz. Thank you. Ambassador, if you wouldn't mind, I know there were a couple of---- Ms. Granger. I cut him off I'm sorry. He was not on the red light. His time had not expired. Mr. Yoder. I actually didn't use all of our time. It is a miracle in this committee. If I might, just to follow up with a question. Just you are looking prospectively. Can you look retrospectively a little bit for me? Looking back, what could we have done differently to save Ambassador Stevens' life? Ambassador Power. Again, I was not involved in that--I think I don't have the familiarity to offer you a productive response. I think probably there are others who would be better positioned to respond to that. Mr. Yoder. Okay. Thank you, Madam Chair. Ms. Wasserman Schultz. Thank you, Ambassador. I think you didn't get to finish your response to the--I think I asked you four questions. Ambassador Power. The Human Rights Council I know I didn't answer. Ms. Wasserman Schultz. Right. And just U.N. reform. Ambassador Power. Yes, U.N. reform. And in fact, Congresswoman Lowey asked a similar question. Ms. Wasserman Schultz. And the other thing I just wanted to get in is to underscore what Mr. Diaz-Balart mentioned on Venezuela, and also to praise you, because you have personally engaged, and the Secretary has, and President Obama has acknowledged the very serious oppression that is going on in Venezuela. But if you can more specifically discuss how we can balance the United States' role and not feed into Maduro's obvious attempt to distract from his own deliberate oppression and blame his problems on the United States. Ambassador Power. Okay. Let me start, if I can, by addressing the Human Rights Council question. I don't remember exactly how you worded the question, but it was---- Ms. Wasserman Schultz. Basically, how can we get the Human Rights Council, through our membership, to focus less on Israel and more on---- Ambassador Power. Exactly. That was the line I wanted to pick up on. Because what I would say is since we joined the council, since the President made that decision to return to try to reform the council from within and make the council more functional for human rights around the world, we have had a great deal of success getting the council to focus more on real world human rights abuses. Where we have had less success is getting it to focus less on Israel. And so there are fewer countries, I believe--I would have to look at the statistics each year--but there are fewer country-specific resolutions on Israel from one year to the next, but it is still a standing agenda item. And the notion that Israel is a standing agenda item on the Human Rights Council, and DPRK, which has some of the worst atrocities on planet Earth, Syria, where you have a government using chemical weapons, barrel bombs, and Scuds against his people is not a standing agenda item, it is obscene. So our challenge there is the numbers. So what we do is we use our platform to call out what is happening and to stand up for Israel and to reject the delegitimization. I indicated in my opening remarks that we also have secured I think a really important step for Israel, which has membership now in a regional grouping, which should not be something that we have to celebrate, but because they had been excluded from a regional grouping in Geneva for so long, this is something that has come to mean a great deal to Israel and a great deal to us. And so that is happening right alongside the challenges that we face on Israel within the Human Rights Council. And we will continue to chip away, including getting Israelis into leadership posts across the U.N. system, which we are doing more and more. But on the functional side of the Human Rights Council, this is the place where the first ever U.N. resolution acknowledging that LGBT persons were entitled to full human rights was passed 2 years ago, which again should not have taken so long, but it is a very significant piece of normative business. The Syrian Commission of Inquiry would not exist if not for this. You mentioned Iran. The Iran, we just re-upped last week the Special Rapporteur on Human Rights for Iran, which at the very time that we are negotiating on the nuclear issue, we cannot forget the state of human rights, the deplorable state of human rights in Iran. And this Special Rapporteur has provided an independent source of information that has really strengthened, I think, our ability to document and to get the international community---- Ms. Wasserman Schultz. Venezuela and Cuba as well. Ambassador Power. Yes. I am sorry? Ms. Wasserman Schultz. Cuba and Venezuela. Ambassador Power. Cuba and Venezuela are more challenging within the Human Rights Council because of the weighting of the membership. And what we have done there, and again, I mentioned this a little bit earlier, is we seek to use the platform we have. We are America. People listen to us. They care about what we say on human rights. We can show solidarity with people who are suffering inside these countries. And then we have sought to build regional--sort of not creating formal U.N. human rights resolutions, which we haven't--you know, for whatever reason, haven't been able to build the kind of support that we would like on that, but we can still show that in all regions of the world people are willing to condemn the human rights abuses and the crackdowns that are existing. And I would note in Cuba that there have been more roundups I think in the first quarter of this year than in a very long time. So one cannot be too complacent at all on that situation. And then, on U.N. reform, if I may--I see a flashing red light, it hasn't become a solid red light just yet--just simply to say that there has been a huge amount of duplication in the U.N., that we have a department of field support strategy that has found $250 million in cuts on peacekeeping. I mentioned earlier that the per peacekeeper cost has gone down by 16 percent over the last 5 years that we have been working on these issues, thanks in part also to leadership of Congresswoman Granger and the push we have made on audits. You now have UNICEF, UNDP, U.N. Women, and a bunch of other U.N. agencies who are posting their audits online. We have the Secretariat doing so as well, and they are trying to make that permanent, which I think is a real turning point in the U.N. culture, which has been very opaque. We have created a hotline on waste, fraud, and abuse. And we have frozen--the regular budget growth had been growing, growing, growing, and we basically, you know, have frozen the budget growth, put in place a spending freeze, and we are looking at staff compensation, which is where 70 percent of the regular budget costs are accrued. And they have got to do a comprehensive review on compensation, which we seek. And we just in the last budget cycle secured the cutting of 221 posts, which, again, in the U.N. culture where everybody is wanting to keep posts for, you know who and you know who, was a pretty substantial achievement. Ms. Granger. Thank you. Mr. Dent. Mr. Dent. Thank you. The question I was going to submit for the record I might as well present to you. I may not be able to stay for the answer. I have a commitment that I must attend. The United States has long led the fight against the Arab League boycott of Israel and has aggressively combatted the delegitimization of Israel through various international forums like the U.N. The latter part of the strategy is known as BDS, boycott, divestment, and sanctions. It is considered by many to represent a new line of attack against Israel, delegitimizing Israel's actions through the use of the international systems, the misuse of international law. And it is now feared in the creation of new international codes of conduct that have the potential to truly harm Israel economically as well as politically. These vestiges remain. We effectively defeated the Arab League boycott as a tool of delegitimization by establishing legal protocols and advising corporations about the penalties in store for those choosing to abide by it. While the challenge of this boycott, divestment, sanctions, the BDS, is more diffuse, the underlying principle pretty much remains the same. We cannot allow others to pervert international systems to attack Israel. And we cannot allow international codes of conduct to be turned into new weapons in the delegitimization arsenal. I guess the question is, do you share my concerns? And if so, what steps is the U.S. taking to ensure that the international systems of which we are part and a large contributor to are not taking or supporting actions to deliberately single out and delegitimize Israel? And the last question is, how are we engaging with international bodies as they seek to establish new codes of conduct that, if left unchecked, could be used as sticks to wage a destructive campaign against one of our closest and dearest allies? Ambassador Power. Okay. Well, let me try to take advantage of your presence here for the next minute to say that we oppose and reject divestment and boycotts. I think Secretary Kerry has been very clear on this. I have certainly been clear on this. In the U.N. system, the form that that has taken so far is more along the lines of what we have discussed so far, the exclusion of Israel from various groupings. I just had the chance to discuss this Western European and Others Group, which back in 2000, we were able, the United States was able in New York to get Israel membership in, in New York. But we were always denied, Israel was always denied in Geneva. Taking advantage of the peace process, and years of lobbying, and months of very intensive lobbying on this issue, Israel was finally admitted just this fall. Similarly, in New York, there is a human rights caucus for like-minded countries that basically vote the same way and think the same way on human rights issues. Israel's voting coincidence with the countries who are part of that group is very, very high, even higher than that of the United States. And yet, for years, it was excluded from that group. We just secured membership for Israel in that group. Israeli officials have had a very hard time becoming senior U.N. officials. But in recent years, we have gotten an Israeli official elected vice president of the General Assembly. The U.N. Human Rights Council has just named an Israeli an independent expert on older persons. We have gotten them on to executive committees for the Convention to Eliminate Discrimination Against Women. I mention these in some detail because this is what legitimization looks like. This is what has to happen alongside our efforts to oppose boycotts, divestment, and unilateral statehood bids. Mr. Dent. Thank you. Ms. Granger. Mr. Schiff. Mr. Schiff. Thank you, Madam Chair. Two questions. One just to follow up, because I think my clock ran out in the first round, is there any kind of diplomatic avenue still open on Syria? Or given Assad's current military advantage, has the Geneva process and any other completely evaporated? And second, while a lot of the barriers are coming down at home in terms of the LGBT community, there seem to be a rash of new anti-LGBT laws in Africa. We have seen the action in Russia. But increasingly, even places like Eastern Europe, you are seeing this on the legislative calendar in the parliaments in Eastern Europe and the Baltic States. What are we doing at the U.N. to try to get out ahead of this, to be proactive on this? And do you see this as part of, at least as far as Eastern Europe goes, Putin's effort to create a new ideological war with the West and make this one of the components? Ambassador Power. Thank you, Congressman. On Syria, the diplomatic process is not in a good place. That is evident for everyone. I can share personally that the meetings that we had when Lakhdar Brahimi, the U.N. mediator, was in New York, the challenge we are facing is that the mediator has put forth a path forward which would have the parties, both of whom again showed up for the second round of Geneva finally, after much preparatory work on our part with the opposition, but Brahimi's conviction is that in order for these talks to go forward, one cannot exhaust the topic of terrorism and come to conclusion on the topic of terrorism without in parallel dealing with the issue of the transitional governing body, which is the cornerstone of the Geneva communique. And the Syrian position, obstinate position up to this point, is we will not talk about the transitional governing body until we have dealt with terrorism, which, you know, is itself a show of bad faith, the way that they are approaching these talks. So we are working aggressively behind the scenes, notwithstanding Ukraine and all of the other business that we are doing at present, to try to get those who have influence over the Syrian regime to change their position. Right now, it is the Syrians who are preventing the reconvening of another round of Geneva talks. In parallel, and I spoke a little bit to this earlier, but in a different context, the Kessab context, it is very important that the moderate opposition be strengthened. And we are looking at additional steps that we might take in order to enhance their efforts on the ground. Because something quite significant has happened over the last few months, which is that they have taken on terrorist and extremist groups which, you know, so far probably is one factor behind some of the Assad regime's recent tactical military gains. And that counts as infighting within the opposition, but it is certainly in the U.S. interest for that moderate opposition, who are willing to commit to protect the rights of minorities and who seem to have a vision for Syria that is multiconfessional, it is in our interests for those elements to be strengthened. Right now, the regime is not--you know, does not--does not feel that it needs to come to the negotiating table. And so that support for the moderate opposition is going to be a critical component, alongside pressure on those who are backing the regime to bring the regime to the table. On the LGBT issue, it is, I would agree completely with the way you characterized it. Just at the time where LGBT persons in this country are seeing a rate of progress, particularly when it comes to gay marriage and inclusion and acceptance, that is incredibly important and that of course needs to continue and even speed up for the sake of the dignity of all people living in this country, but at the very time we have had some good news stories in this country, the trend internationally is going in the opposite direction. There are laws criminalizing homosexuality in 80 countries at present. So the countries that you mentioned or alluded to in Sub-Saharan Africa and in the Baltics, this is a new chapter, shall we say, in what has been a chronic effort to criminalize sexual orientation. The death penalty is applied in seven countries on the basis of sexual orientation. Two years ago, President Obama issued the first ever Presidential directive on LGBT rights as international human rights. Secretary Clinton gave an incredibly powerful, epic speech in Geneva in the Human Rights Council, where many countries were very startled to see the United States out there leading in this way and insisting that LGBT persons were entitled to the same rights as everyone else around the world and are a central part of what it means to promote human rights. As part of the Presidential directive, we look at assistance; we look at asylum claims on the basis of persecution. And now, in many of these countries, people, of course, have a well-founded fear of persecution because there are mobs going door to door with lists of LGBT persons in countries like Nigeria. Russia was the first recent country to put these laws on the books. And unfortunately, in the old days, we used to talk about the importance of exporting best practices in development and security sector reform and all of that. Now we see countries like Russia exporting worst practices, and other countries taking the worst aspects of that law and putting them on their books. But President Obama, again, has been very outspoken on this, and we will continue to contest this and make it a subject of our bilateral diplomacy, and do what we can within the U.N. system along the lines that I described earlier to make sure that other countries are standing with us, particularly from other regions and not just from Europe and North America. Ms. Granger. Thank you very much. Thank you for being with us. I will be submitting for the record some questions about U.N. reforms, having to do with transparency and accountability, like spending plans for U.N. organizations and a report on funds withheld because of any provision of law. I will submit that to you. If you could just give me an answer in writing. Thank you. Thank you very much, Ambassador Power. Thank you. This concludes today's hearing. Members may submit any additional questions for the record. The Subcommittee on State, Foreign Operations, and Related Programs stands adjourned. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Tuesday, April 29, 2014. UNITED STATES ASSISTANCE IN AFRICA WITNESSES LINDA THOMAS-GREENFIELD, ASSISTANT SECRETARY, BUREAU OF AFRICAN AFFAIRS, DEPARTMENT OF STATE SHEILA HERRLING, ACTING CHIEF EXECUTIVE OFFICER, MILLENNIUM CHALLENGE CORPORATION EARL GAST, ASSISTANT ADMINISTRATOR, BUREAU FOR AFRICA, U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT The Opening Statement of Chairwoman Granger Ms. Granger. The subcommittee on State, Foreign Operations and Related Programs will come to order. Today we will hear from the panel before us on United States assistance to Africa. I would like to welcome our witnesses: Assistant Secretary of State for Africa, Linda Thomas-Greenfield; Assistant Administrator for Africa, Earl Gast; and Acting Chief Executive Officer for the Millennium Challenge Corporation, Sheila Herrling. Thank you all for being here. We are expecting more of the members, but we are going to go ahead and start because all they will miss is our opening remarks. Right? Mrs. Lowey. Right. Ms. Granger. Today's hearing is very important--given the significant funding that has been provided and the challenges facing the continent. There are also many achievements from our investments over the last several years, and I hope we can hear about the successes and learn from them. $6.9 billion of the fiscal year 2015 budget request for State and USAID is for Sub-Saharan Africa. That represents 35 percent of the funds and is more than any other region except the Middle East. Additionally, all four countries proposed for Millennium Challenge Corporation funding in fiscal year 2015 are in Africa and three of those are in Sub-Saharan Africa. Africa also receives the majority of funds requested for the President's three major foreign aid initiatives, and last year the administration announced three new initiatives for Africa, focused on power, trade and youth leadership. We have seen proven results from some of the investments already made, such as life-saving programs in HIV/AIDS, malaria and maternal and child health, and conservation programs that have helped countries manage and protect Africa's unique natural resources. Our investments pay dividends in public diplomacy. In Africa, opinions of the United States ranks among the highest in the world. With respect to security, our assistance supports activities ranging from peacekeeping missions, counterterrorism initiatives, and programs to reform and professionalize police and military throughout the continent. The needs have never been greater. New and troubling conflicts have broken out in South Sudan and the Central African Republic. Longstanding violence continues in the Democratic Republic of Congo, and terrorism remains a significant threat not only to stability in Africa, but to our own national security. I want to hear from our witnesses how the programs we fund address those challenges. And, finally, the United States is responding to some of the most devastating humanitarian crises in years. In Africa alone, conflict, disease, and a threat of famine have put millions at risk, but the cuts to humanitarian assistance in the fiscal year 2015 request do not reflect this reality. I hope our panel can address this discrepancy. There is a wide range of topics we could discuss today, and I expect this will be a very productive hearing. I look forward to hearing about some of the issues I raised. I will now turn to my ranking member and friend, Mrs. Lowey, for her opening remarks. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mrs. Lowey's Opening Statement Mrs. Lowey. Well, thank you, my friend, Chairwoman Granger. It is a pleasure for me to join you in welcoming today's distinguished panel. Today's hearing is important and a welcome opportunity to refocus our attention on Africa. We face numerous global challenges: the upheaval in Ukraine, the interminable civil war in Syria, Iran's nuclear program, our drawdown in Afghanistan and more. At the same time, we cannot neglect the alarmingly increasing number of crises in Africa and must continue to invest strategically in strengthening development and diplomatic ties. This is not the United States' responsibility alone. I want to repeat that. I believe fervently this is not the responsibility of the United States alone. I want to hear from you how the administration is engaging with other donors, the U.N., and multi-lateral institutions to address the challenges and opportunities on the African continent. From countries in crisis to counterterrorist operations, from conflict mitigation, humanitarian responses, to sustaining health and development initiatives, Africa is a microcosm of our diplomacy and development goals worldwide. I look forward to hearing the panel's insight regarding our assistance in Africa at this critical time, paying particular attention to three pillars in U.S. policy: mitigating humanitarian crises, promoting security and stability, and supporting health, human rights and democratic governance. Recent U.N. reports from South Sudan and the Central African Republic reveal haunting details of violence, instability, and human suffering. Ethnic groups are being systematically targeted for political retaliation, and atrocities are being committed against women and children. I hope to learn further details on the administration's diplomatic strategy and humanitarian response and on the U.N. peacekeeping missions in South Sudan and the Central African Republic. How can the international community prevent these countries from spiraling further into indefinite genocide? And given other ongoing needs in places like Syria, Somalia, and Mali, are the proposed cuts to the International Disaster Assistance and the Migration and Refugee Assistance accounts by 28 percent and 33 percent, respectively, appropriate? I am also deeply troubled by the rising tide of terrorism perpetrated by Islamic extremist groups. The merciless brutality demonstrated by al-Shabaab's 4-day siege of the Westgate Mall, Boko Haram's recent kidnappings of schoolgirls and bus station bombings, al Qaeda in the Islamic Maghreb's seizure of northern Mali all sent shockwaves throughout the world and threatened U.S. interests and citizens. I hope you will provide greater insight into the administration's strategy for enhanced security cooperation with African countries, European Union, and the U.N. We have seen tremendous success with our health investments, with over 6 million people on HIV treatment as well as advancement in child mortality rates due to improved access to vaccines and treatment for deadly illnesses such as malaria and pneumonia. I am pleased to hear reports of rapid economic growth and development in countries such as Ghana and South Africa. However, we must sustain these gains in health and accelerate progress in other areas such as food security, governance and the elimination of poverty. We need to ensure that every last foreign assistance dollar is programmed to deliver results in a cost-effective manner. Therefore, I was troubled to learn that the cost of training one person on countering extreme violence can cost up to $700,000. I hope you can tell me that this was a typo in a report. Because I ask myself: How many children can we educate for that amount of money instead? Is education a better strategy for countering extreme violence? Are we wisely spending our resources on programs and policies that work and are cost- efficient? How are the difficult decisions and trade-offs made? And what evidence is used to support these decisions? I am encouraged to see that the year's request continues to prioritize investment in Power Africa, Trade Africa and the Young African Leaders Initiative; yet, it greatly concerns me that the administration is undercutting once again investments in basic education. So, in conclusion, I hope to learn more about how the U.S. Government is diplomatically engaging African leadership to invest resources in their own people and commit to improved transparency in governance. Both donor and host countries need to fully synchronize their efforts through a holistic strategic dialogue if we are to increase total investment across the key human development sectors of health, education, energy, and infrastructure. And, really, finally, I will close by saying I am very concerned about backsliding in the area of human rights, in particular, the proliferation of discriminatory and draconian legislation against LGBT in Uganda and Nigeria, and I remain deeply troubled about the impact on personal freedom and public health. Thank you again for joining us today. Thank you for your service. I look forward to your testimony. Ms. Granger. Thank you, Mrs. Lowey. I now call on the witnesses to give their opening statements. And I would encourage each of you to summarize your remarks so we can leave time for questions and answers. Your full written statements will be placed in the record. We will begin with Ms. Thomas-Greenfield. Opening Statement of Ms. Thomas-Greenfield Ms. Thomas-Greenfield. Thank you very much. Madam Chairwoman, Representative Lowey, members of the committee, I start by thanking you for the opportunity to speak today in support of the administration's fiscal year 2015 budget request and to further detail--provide further details on our U.S. assistance to Africa. And, as you noted, a complete version of my testimony has been submitted for the record that will address the full range of issues that have been raised. And I will be prepared to answer any questions that you have. As Secretary Kerry noted in his testimony before you last month, we deeply appreciate the role that this committee and the subcommittee play in helping the American people understand why foreign affairs matters to them. Advancing the values and interests of our country and promoting stability in the world does matter to our citizens, whether it results in jobs and economic opportunities, connections between communities, or the safety and security that we aim to achieve. The Secretary was speaking in a global context; yet, we believe his words are applicable directly to U.S. relations with the continent of Africa. For far too long, images of poverty and insecurity have dominated the American perspective on Africa. Yes, these do, exist in Africa, and I would be remiss today if I did not express my deep concern with the continued violence and fighting in South Sudan, in Sudan, in Central Africa Republic and with the increasing atrocities committed by Boko Haram against schoolgirls and other innocent citizens committed by Boko Haram and attacks that are committed against all faiths in Nigeria, across the borders in neighboring countries as well. But as in other parts of the world, they are certainly not the whole story of what is happening on the continent. Those images illustrate only a narrow component of what our partnership on the continent are trying to address and to achieve. And, in fact, tonight I leave with the Secretary for his second trip to Africa to meet with our partners to address some of the challenges and the opportunities for cooperation. He will open a high-level dialogue--our fourth high-level dialogue with the African Union, and he will meet with our regional partners regarding the situation in the South Sudan and in the Great Lakes. We also have an exciting summer ahead, as you mentioned, with our Washington Fellows program, part of President Obama's Young African Leaders Initiative, or YALI, and the historic U.S.-Africa leadership summit to take place in August in Washington. Our fiscal year 2015 budget request reflects the policy priorities set forth in the presidential policy directive for Sub-Saharan Africa and the State-USAID joint regional strategy for Africa. The total request for Africa is $6.9 billion. It seems like a lot, but when you look at all of the priorities that we have and the crises that we are involved in, it is not. Of that total, roughly 68 percent, or $4.7 billion, of this goes toward bilateral assistance for 15 priority countries. And over the last 50 years, the relationship between the United States and these countries, as well as the whole continent of Africa, has evolved dramatically. In each of the priority countries, we are actively pursuing policies of partnerships, ways to promote solutions that yield benefits over the long term for both countries and as well as for their people. Their policy priorities--these--they are policy-priority countries not just because of the need, but also because of opportunities we see for mutual prosperity. Moreover, peace and prosperity in these countries will have a positive effect throughout the region. As in previous years, the request includes a robust support for the three global presidential initiatives: Global Health, $4.8 billion; Feed the Future, $500 million; Global Climate Change, $88 million. It also includes resources to continue support for the three Africa-specific initiatives begun in fiscal year 2013: Power Africa, $77 million; Trade Africa, $27 million; and the Young African Leaders Initiative, $10 million. The fiscal year 2015 budget request also includes a proposal to fund the Peacekeeping Resource Mechanism, PKRM, and I know that Ambassador Powers, who--was on April 2nd before you and she addressed this issue. I want to add my strong support for funding this account. Like many other parts of Africa--other parts of the world, Africa faces many complex crises. And the origins of these crises can be political. They can be ethnic or religious tensions, as we have lately seen in Central Africa Republic and in South Sudan. And despite our best efforts to plan for these contingencies and forecast the trends, we don't always know when the next crisis will play out. I don't think we knew that we were going to have the kind of crisis we are in in South Sudan right now. So the United States needs to be able to respond quickly and robustly, and the PKRM will help us do that. Our challenge is also to try to balance our near-term and urgent imperatives with our long-term priorities. There will be 11 elections on the continent in 2014, 12 in 2015. And for that reason, our budget request is focused on providing support in all arenas, and most critical are stability and growth, such as promoting strong democratic institutions, building security sector capacity, facilitating economic development, and creating lasting connections between the United States and the people of Africa. So across the board, we are trying to move beyond outdated models for aid and focus on the objectives that link us with the private sector, with other African Governments, with local NGOs, with civil society, with other regional partners, with our other partners in the donor community, as well as citizens as partners. And this must be, we believe, the way forward in terms of budget realities and in recognition of how our relationships with African partners have evolved over the past 50 years. Thank you very much. And I look forward to your questions. Ms. Granger. Thank you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Opening Statement of Mr. Gast Ms. Granger. Mr. Gast, you are now recognized. Mr. Gast. Madam Chairwoman, Ranking Member Lowey and Member Schiff, it is my pleasure to appear before you today to discuss the President's budget for U.S. aid in Africa. Nowhere in the world is development such an important part of U.S. engagement efforts as it is in Africa, and the changing tide on the continent requires a new model for development. This new model is at the core of USAID's approach in Africa, which seeks to end extreme poverty by investing in Africa's greatest resource, its people, to sustain and further develop opportunity and human rights for this and future generations. Across the continent, we are implementing major initiatives to improve health, food security, electricity access, trade and resilience that are underpinned by commitments to good governance, education, gender equality and the environment. These programs are driven by a culture of innovation, powered by efforts like USAID's Development Lab, which brings together a diverse set of partners to discover, test, and scale break-through technologies and solutions to chronic development challenges. Our fiscal year 2015 request focuses on bilateral assistance for 15 priority countries in Sub-Saharan Africa that are critical to national security and economic trade. 80 percent of the rest would go toward three of the President's global initiatives: Feed the Future, the Global Health Initiative, and Global Climate Change Initiative. The request also supports three Africa-specific initiatives launched by President Obama last year: Power Africa, Trade Africa, and the Young African Leaders Initiative. All complement the global initiatives and broaden our development impact. And when they are applied on a country or community basis, along with the work of other government agencies and other donor partners, they are designed to take root and fuel real long-term change. Each of the 42 countries where USAID works requires unique support, from the devastation in the Central African Republic to the rising prosperity in Tanzania, the violent crisis in South Sudan and the peaceful political transition in Senegal, the fragility of Niger and the anchor of South Africa. While the governing principles of our work applies across the continent, our strategies are tailored to each of these country's singular challenges and opportunities. The effectiveness of this approach is evident. The Millennium development goal of reducing the number of hungry people in the developing world is reachable by 2015. PEPFAR is supporting life-saving anti-retroviral treatment for more than 6 million persons. The number of people newly infected with HIV is decreasing for the first time since the epidemic struck, and 10 African countries have reduced the number of malaria cases and deaths by over 50 percent in the last decade. Our long-term investments in the Global Health Initiative half the burden of malaria for 450 million people, representing 70 percent of the at-risk population in Africa. Over the past 20 years, with help from USAID maternal and child health programs, child mortality has dropped by nearly a third and maternal mortality has dropped by 41 percent. A focus on resilience is being institutionalized within Feed the Future, and progress has been steady, especially in areas that recently suffered from historic drought. And since the launch of the new Alliance for Food Security and Nutrition at the G8 Summit in 2012, more than 140 companies--two-thirds of them are African--have committed to responsibly invest more than $3.7 billion in new alliance countries. In less than 1 year, Power Africa has closed deals that will add more than 2,800 megawatts, about 28 percent, committed through Power Africa, which is a remarkable achievement that will advance our efforts to mitigate the effects of climate change, promote economic development, and improve education and healthcare. Trade Africa, a partnership between the U.S. and the East African community, will aim to double intraregional trade and exports to the U.S. by 40 percent. In recent years, skilled civilians, statesmen, and women have begun to replace the big men that once dominated the continent. Africa's new leaders are now serving as role models for the next generation and they are increasingly becoming partners in development through initiatives such as the Partnership for Growth. This summer, President Obama will welcome the heads of state from across the continent to Washington, D.C., for a summit that will further strengthen U.S.-Africa ties and advance the administration's focus on trade and investment in Africa. It will also highlight America's commitment to Africa's security, its democratic development, and its people. This is our new model for development in action. USAID's work values partnership over patronage and innovation over convention. This approach enables us to make the greatest difference while making the most of every dollar. And as we continue to work with Congress to achieve our shared goals, we very much look forward to a continued conversation on our priorities in Africa. Thank you. Ms. Granger. Thank you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Opening Statement of Mr. Herrling Ms. Granger. Ms. Herrling, you are now recognized. Ms. Herrling. Thank you very much, Chairwoman Granger, Ranking Member Lowey, members of the committee for inviting me here this morning. President Obama's 2015 budget request of $1 billion, an 11 percent increase over last year, will show MCC is continuing to deliver results for the American people, for our partner countries that share our values, and for the administration's priority, from advancing transparency to supporting open data and evidence-based programming to building new partners and markets in Africa, including through Power Africa. We will continue to work hard to keep MCC successful, and that means working hand in hand with you. I am going to focus here on three things: what makes MCC work, what we have achieved particularly in Africa, and what is next. MCC was created 10 years ago with the model very purposely built on the lessons others learned before us. You referred to them, Ms. Lowey, in your opening remarks. And so, as you well know, we have a singular mission: reducing poverty through economic growth. We work with a limited number of countries, poor, but well governed, and they themselves design and implement the programs. We target our investments to programs that accelerate growth and generate a rate of return, and we evaluate every major program, sharing our results publicly, part of why MCC was ranked number one transparent agency in the world. Now, Africa has seen the bulk of MCC's work. Some 15 of our 27 signed compacts have been with African countries, totaling close to $6 billion, and the results are impressive. I could list numbers. We often come up here and list numbers of kilometers of roads paved, farmers trained, land titles given particularly to women. We live by these numbers. We publish these numbers. We learn from these numbers. But a list of numbers doesn't often tell the whole story, and we want all of these outputs to add up to economic growth and increased incomes. That is the real impact that we are working to achieve. And with your support, MCC will continue to forge successful partnerships in Africa. Our 2015 request is slated for four African countries: Liberia, Morocco, Niger and Tanzania. Liberia and Niger are new compact partners, and it is always very exciting when new countries have worked very hard to pass our eligibility requirements and are in the investment pool. In other cases, the data shows that the greatest opportunity for impact is deepening partnerships with countries we have worked with before, like Ghana and Lesotho. In all cases, MCC's board is looking to put hard-earned taxpayer dollars where it will deliver the maximum results. In Africa and elsewhere, the question now is: What is next? Let me highlight three things that we would like to be working with you on over the coming year. First, creative financing mechanisms. Pay for performance and cash on delivery could give us ways to further innovate, scale, and sustain our investments. Second, regional impact. The port expansion program we funded in Benin, for example, has regional impact. Enhanced trade opportunities were certainly a benefit for Benin, but, also, for its land-locked neighbors. But perhaps there is more we can do on the assessment and operational front. And, third, very importantly, fighting corruption. You can't fight corruption if you can't measure it well. And to keep our measures cutting-edge, MCC is bringing together an alliance of experts and users of governance data to see if new and improved ways of assessing a country's efforts to combat corruption can be created. For 10 years now, you have supported MCC's work. Thank you very much for that support. It is very helpful to what we do, constantly adapting, applying, and we hope for your continued support going forward. And I am happy to answer any questions. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Ms. Granger. Thank you all very much. I am going to start with a question and then turn to Mrs. Lowey. Conservation, of course, you know is critically important to our country's efforts. So I was very disappointed that the budget reflects for biodiversity a cut by half from the current level. The programs are really important, and you know they are important. Deforestation, over-fishing and wildlife poaching, which has increased significantly, these needs are not decreasing. So I would turn to Mr. Gast, please. Can you explain the proposed cuts at a time when the needs really have never been more urgent, I think especially in Africa. Mr. Gast. Thank you for the question. And we also take it very seriously. In fact, as I mentioned, we are looking at new models and innovations for development. And one area that we think where new technology can play a role is in anti-poaching efforts. And, in fact, very shortly we are going to be issuing a solicitation for ideas on how we can bring technology to bear to help on anti-poaching efforts. So, for example, very lightweight and very cost-effective, cost-efficient UAVs are being piloted in some of the parks with USAID funding. With that, though, getting back to your question about funding, I believe the funding from fiscal year 2013 to 2015 represents a straight line and not a significant decrease, but I can say that we are looking at options on increasing the funding for this year--this current year. Ms. Granger. Thank you. One of the programs that receives this type of funding is the Central Africa Regional Program for the Environment. USAID and the U.S. Fish and Wildlife Service both implement this program. Can you explain who does what, how that is coordinated. Mr. Gast. Certainly. And, also, the Department of State is a key partner in this as well through the use of INCLE funds. We have a partnership with the U.S. Fish and Wildlife Service. It also receives a direct appropriation for the CARPE program, as you mentioned. Where we believe that we add value as a development agency is working with the communities and working with them in providing assistance in helping them themselves maintain and conserve the area of CARPE, where Fish and Wildlife Service brings its unique capacity, which is training the law enforcement side and the fish--and their counterpart, if you will, of the government enforcement agencies for conservation. Ms. Granger. Good. As you look at the technologies that you referred to, would you keep us involved and aware of what is happening? You know, Mrs. Lowey and I have talked about this before and certainly with our staff and said, ``You know, I would hate to think, as I served in Congress, that I watched those wonderful herds of elephants and rhinos disappear from wildlife.'' And so we are willing to help, certainly. So keep us being involved. Mrs. Lowey. Mr. Gast. Thank you. Mrs. Lowey. Thank you very much. With regard to conflict mitigation and humanitarian response, Congress provided robust funding for the humanitarian accounts in the fiscal year 2014 omnibus act, yet, the fiscal year 2015 request cuts IDA by 28 percent and MRA by 33 percent from the fiscal year 2014 enacted levels. But the number of refugees, internally displaced persons, conflict victims, other populations of concern has risen to an 18-year high with more than 45.2 million forcibly displaced predominantly due to violent conflict or more. The number is expected to grow as violent conflicts persist in the Central African Republic and South Sudan. So would the President's proposed deep cuts to these life- saving accounts in his fiscal year budget provide your agencies the resources you need to respond adequately to humanitarian crises in Africa? What is the best plan to utilize finite resources to address increasingly complex deteriorating crises in DRC, Central African Republic, South Sudan, the Sahel, Nigeria? What programs in what countries would likely be cut? And is there enough funding in the IDA/MRA accounts to respond to a new emergency in Africa? And since we can't do it all and since our budget is decreasing, I would be very interested in having you address how you are working cooperatively with other donors so there is coordination, not repetitive efforts, and that you are accomplishing something. And if there is time in the couple of minutes, I would be very interested to know how all this relates to the corruption. So thank you. Maybe you can begin. Mr. Gast. Sure. Absolutely. And then--and, Congresswoman Lowey, let me get back to a point that you made in your opening statement, and that is that it is not the sole responsibility of the U.S. Mrs. Lowey. If you could answer that thoroughly. Mr. Gast. But it is our responsibility as leaders to bring together other donors. And that, I think, is where we have been applying a lot of our effort. Our administrator just 2 weeks ago co-hosted with Valerie Amos of the U.N. and, also, with ECHO Chairwoman Georgieva at a conference among donors here to talk about the situation in South Sudan. And we have been very generous in using 2013 and 2014. We have provided more than $400 million in humanitarian assistance combined. And this was an effort to bring together all the donors and development ministers and finance ministers to talk about the crisis and, also, the urgent need for additional funding. Some made pledges there, but Norway agreed to have a donors conference later this month. So I think that is one way that we are trying to ensure that these crises are not underfunded, just by exercising leadership and getting--and bringing in other donors. Getting back to your point of the reduced request, even with the crises that we have and two level-three emergencies within Africa--CAR and South Sudan--we believe that we will have carryover funding on the humanitarian side to help us support humanitarian efforts in 2015. Getting back to one other point--because you mentioned the Sahel--and that is we have the concept of resilience where we are actually marrying together our development assistance funds with humanitarian assistance so that we have a more regulated and sustained effort in supporting populations that face chronic emergencies. Ms. Thomas-Greenfield. And if I may add to Earl and agree with what he said before, we do work very, very closely with others in the donor community and we look for opportunities to find new donors as well to support our efforts. The primary solution to all of these problems is finding a peaceful solution in the DRC. Our special envoy, Senator Feingold, has been working relentlessly with the other special envoys to--we call them the five E's--to find a solution. We find an accord in Nairobi in December, ending the fighting in DRC with--in 2013, and we are working very closely with the Angolans to see, as chair of the International Contact Group for the Great Lakes regions, what additional role the government of Angola can play. It is a government with a lot of money, and they have been very, very helpful in providing assistance to CAR and we think that they can do more. On the corruption front, it is--our efforts are relentless. And I have to commend our colleagues from MCC. When I was in Liberia, the best tool that I had was the MCC indicators on corruption. And when those numbers went down, I would take those indicators in to the President and say, ``If you want an MCC compact, you need to deal with this.'' And we see that Liberia has succeeded. Corruption still is an issue there, but it is something that I think governments realize, if they are to be taken seriously, they have to address. Ms. Herrling. So if I could briefly, you know, our model resides on this belief that the best antidote to poverty and to instability is economic growth and opportunity in these countries. We are in a limited set of countries, as I said in my opening remarks, but that does require the three of us to work hand in hand across those countries, most certainly to avoid duplication of effort. But in the best-case situation, we are looking to maximize impact, bringing to others comparative advantages to the situation. Thank you, Linda, for referencing the scorecard on the corruption point. You all know we do have a hard hurdle on control of corruption for our partners to get into our program. We take it seriously. We monitor it seriously. We message seriously, as do our counterparts. And we have seen it have an effect, as you referenced in Liberia. So thank you for doing that. The collaboration is both at the policy level. So on our board, we have the Secretary of State chairing, the USAID administrator. We have the Secretary of the Treasury, who covers the MDBs. We have the USTR. So all of these interests come together in a very purposeful way at the policy level. At the operational level, we get to two brass tacks: who is doing what? So if we are building a large irrigation project in Senegal, USAID is training the farmers. We are very purposeful in our collaboration. I think we have come a long way over the last couple of years on this front. Ms. Granger. Thank you for that. Before I go to Mr. Rooney, I thought--when you said you were going to answer Mrs. Lowey's questions, I thought you were going to address the $700,000 to educate one person. Who could answer that question? Ms. Thomas-Greenfield. I heard it and I made note of it. And I hope it is a mistake, because I know that we don't spend $700,000 to train one person on the security front. I know that we have a limited budget and we have trained thousands of African---- Mrs. Lowey. It is vocational training used in which program? Mr. Gast. CVE program. Mrs. Lowey. CBE. Mr. Gast. CVE. Do you know which country? We will look into it. Mrs. Lowey. Okay. Yeah. Mr. Gast. We will look into it. Mrs. Lowey. Thank you very much. I was shocked when I saw that number, and I--my staff insists it wasn't a typo. Thank you very much. Ms. Thomas-Greenfield. Well, I am happy to know that it is not on the security, front spending that kind of money. Ms. Granger. Mr. Rooney. Mr. Rooney. Thank you, Madam Chair. I would like to talk about an issue which, for me, is a little bit personal. I have a cousin who has actually become a famous movie star named Rooney Mara. Before she was famous, she went to Kenya in high school to visit Kiberia--what they called urban slum outside of Nairobi, and it motivated her to start a non-profit called the Uweza Aid Foundation. And, apparently, there was a bunch of other similar-type charities that were supposed to be geared towards servicing areas like that. As you know, this slum specifically came out of Kenya's failure to recognize them as part of the country. They are sort of like a people without a government and a country, the way that I was explained to it. So they are kind of on their own. And one of the things that I came to learn was that they don't receive Federal funding from us. There are charities there that try to help them. But one of the things that became disconcerting to me is there was a lot of charities, just like in anything that you see with 501(c)(3)'s, where charities are set up or groups are made to look like they are going to help a certain situation, and then, as you know, they end up not doing that. They end up helping themselves or raising a lot of money for staff or what have you. So that was one of the reasons why she was motivated to do something different to actually try to help these people. So my question has to do with that, and I want to make sure that I get it right. So forgive me for reading it. But a history of failed aid projects and forced evictions have left many of these residents that I am talking about feeling exploited by these outsiders and what has compelled my cousin to start her own non-profit in the first place. There is a great deal of mistrust of the government and the NGOs not only in this area, which she focuses on this area called Kiberia, but, arguably, a number of other urban slums just like it all across Africa. Has State or USAID offices in Kenya implemented any programs or projects to provide either basic assistance, water sanitation, healthcare, education to the residents of Kiberia? And, also, can you address--does State or USAID do anything to sort of police or monitor these groups that are supposed to be coming in there trying to help--this might be outside of your lane; so, forgive me if I just don't know--that are just using these people to exploit for their own financial benefit? Ms. Thomas-Greenfield. Let me start. I was in Kiberia on my last trip to Kenya in December, visiting a project that USAID was funding with an NGO there. And there are a number of such projects. And not to speak on USAID's behalf, but I served in Kenya in the mid-1990s as the refugee coordinator working for PRM and working with NGOs that were working with displaced particularly Somali refugees, and part of my job there was to monitor those organizations that we were funding to provide assistance. I don't doubt--in fact, I would say I know that there are organizations that are not reputable, are not credible, that seek funds to line their own pockets. But I would say that any organization that we are funding would be monitored and monitored quite robustly by our people who are on the ground. And I think we take it very seriously. That doesn't mean that there may be some that slip through the cracks, but we would be interested in knowing so we can make sure that--our job is to protect U.S. taxpayers' dollars overseas and see that the funding that is being provided is going to where it needs to go. And, again, I saw one of the projects--and I was very impressed--that was providing water support in Kiberia--in the Kiberia slums. Mr. Gast. And if I may just add, we do a very thorough vetting process of the organizations that we fund, whether they are U.S.-based or on the continent. That doesn't mean that they don't fall down in meeting their--in meeting their requirements from time to time. But as the Assistant Secretary mentioned, we do have monitoring officers go out and monitor the impact of the work that the NGOs are performing. One thing we do do as well is, even if we are not funding an organization, an NGO has to adhere to international standards in providing humanitarian assistance. And if we do see NGOs falling down on the jobs, ones that we are not funding, that information is then reported to the government. Mr. Rooney. If I could ask a quick follow-up question. With regard to State, how do you deal with Kenya with regard to a place like this and our affiliation or our relationship with them? How do you deal with them when they are just ignoring these type of places? Ms. Thomas-Greenfield. I think that is a situation that exists across the continent of Africa, where we find people who are disenfranchised and who are not benefiting from the government services. We try to work with the government. For example, when I went out to Kibera, we took the Minister of Education with us out there to make sure that he also saw what we saw in those--in those slums, and we tried to help them build capacity to deal with some of those issues. But I would venture to say that Kenya is not the only one-- the only country with this kind of situation. I saw similar situations in the slums of Nigeria. And I have to commend your cousin for the work that she does, because there are a number of organizations like her organizations who are really reaching communities that nobody else cares about and they are able to provide assistance in a way that we all appreciate, and I think is a positive reflection on America as a country. So, again, I thank her. And we do deal with these governments. We push them. But it is still a work in progress for us. Ms. Granger. Thank you. Mrs. Lowey. Mrs. Lowey. Just briefly, I remember taking--I just wanted to associate myself with the remarks of my colleague. I remember I led--I think it was 2003 a trip to Kibera. And I was so angry at the mud and the filth and the fact that the council people were coming in and all taking their share. We met with people who were doing micro-enterprise, and the local gang, supposedly, elected officials, were taking their share. And I just felt we were facilitating this mess. I said as long as I had something to do with it, I don't want to give a dime--I said this to the housing administrator, that, ``I don't want to give a dime to you or anyone here unless you mow this down and build another housing complex.'' So I just really want to associate myself with your remarks. And we just can't keep doing this kind of thing and perpetuating these conditions--were you on that trip, Barb? Ms. Lee. Yes. Mrs. Lowey. Oh. That is right. Ms. Lee. Yes. I remember it very well. Mrs. Lowey. I remember we got so angry there. And I don't remember the name of the housing administrator, but it was just the government was collecting from these people. They were living in inhumane conditions. And I am not saying that this is unique, and you are saying there are other places like that. But I remember talking to the U.N. staff. I said, ``Why are you here? You are just encouraging this whole way of life.'' So I think there is a real question. I would like to continue that discussion. What are we doing? Maybe our money would be better used just building another decent housing settlement for these people, but keeping them in this abject poverty with filth and mud--was very upsetting to us. I think we are all making that point. I don't want to take up more time at this hearing. Many of my colleagues haven't spoken. But I thank you for bringing up Kibera again. And because there are so many other challenges, Barbara, I don't think we have talked about Kibera recently, but I would like to have a discussion with you. Ms. Granger. Thank you. Mr. Schiff. Mr. Schiff. Thank you, Madam Chair. There are so many issues to go over. Let me just throw out a few and then see if you can respond to as many as you are able to with the time. Can you tell us the status of the peacekeeping operation in Central African Republic (CAR), which the U.N. Security Council voted to deploy April 10th. Also, can you tell us what efforts we are making to address the violence in South Sudan. And then I wanted to ask you about Ethiopia. Nine bloggers and journalists were arrested in--out of Saboba last week, just days before Secretary Kerry's anticipated visit. Six bloggers for Zone 9 and Amharic-language website whose writers have criticized the government, and three freelance journalists were arrested. No formal charges have yet been filed. This is just the latest episode in an all-too-familiar pattern of harassment of journalists in Ethiopia, throughout all of Africa and, unfortunately, in all too many places around the world. I hope the Secretary will raise the issue of press freedom in his meetings, and I wish you could update us on the current situation with the nine specifically and more generally about the department's efforts to promote press freedom in Africa. Finally, on the issue of the LGBT attacks in Uganda, according to the Associated Press earlier this month, Ugandan police raided the offices of a U.S.-funded project. The Makerere University-Walter Reed project in Kampala was targeted for training youths in homosexuality, supposedly, said a government spokesman. The project later suspended its activities in Uganda after one of its staff, a Ugandan citizen, was arrested and briefly detained by police on Thursday. Now, this is a program that is funded through PEPFAR. I applaud the government--our government for its recent action to divert money away from the Ugandan Government and to NGOs. But if the Ugandan Government continues to harass health workers serving LGBT patients, it will be nearly impossible for LGBT patients to get access to appropriate healthcare. What are we prepared to do to ensure that U.S.-funded HIV- related health services in Uganda and elsewhere are comprehensive and inclusive? Ms. Thomas-Greenfield. Thank you. Let me start, and I will go as long as you allow me to go. Let me start with CAR and the peacekeeping operations there. I was in CAR a few weeks ago with Ambassador Power and I was also there with her in December. And we continue to be very deeply concerned about the situation there. The U.N. did pass a resolution on April 10th for a PKO operation that will start in September of this year. But between now and September, we need to work with the African Union troops to ensure that they have what they need in terms of equipment and authority to address the ongoing violence in that country. I saw yesterday that the U.N. had moved 1300 Muslims out of Bangui to another area of the country. And from December to our visit a few weeks ago, the Muslim population has almost completely left Bangui because of the violence there. The situation, again, continues to be very, very troubling for us as well as for the French, who have troops on the ground, the African Union with troops on the ground. Part of what the Secretary will be doing on his trip to the region is meeting with the Angolan Government, as well as with the U.N., to talk about how we can more robustly address the security issues that exist in CAR. On the humanitarian side, I will leave that to Earl to talk about, but we have also been robustly involved with trying to provide humanitarian assistance to the government. On the situation in South Sudan, again, this is something that is high on the Secretary's agenda for our trip leaving tonight. He will be in Addis, meeting with the IGAD negotiators as well as the IGAD foreign ministers to talk about the way forward for South Sudan. And then he is going into South Sudan to meet with Salva Kiir and will be making contacts with Riek Machar as well. The violence there has led to thousands of deaths, and we have been working with both the A.U. as well as IGAD to address some of those concerns. Former President Obasanjo was in South Sudan last week. I spoke to him. He is chairing--heading the Commission of Inquiry for the A.U. to look at the atrocities that have been committed so that we have some record to hold people accountable for the actions that have occurred there. And, as you know, the President signed an executive order to provide sanctions on those people. On Ethiopia, we were very disappointed to hear once again that Ethiopian bloggers were arrested. They are added to the others who have also been arrested. And we continue to raise this on a regular basis with the Ethiopian Government and it is on the agenda for the Secretary to raise when he meets with the Prime Minister and the Foreign Minister while he is in Addis this week. And, finally, on the LGBT, we are very, very concerned about the increase in anti-LGBT legislation that has been proposed on the continent of Africa and elsewhere in the world. The legislation in Uganda has led to renewed violence against the LGBT community. As you know, the President announced that what has happened in Uganda will complicate our relationship. We are in the process of reviewing that relationship and our funding to see where changes can be made and, in particular, changes that will take funding away from those organizations and entities that discriminate against the LGBT community. This is still a work in progress. We are quietly working with other governments that may be considering such legislation and discouraging those governments from taking actions that might discriminate against the LGBT community. Ms. Granger. Thank you. Mr. Diaz-Balart. Mr. Diaz-Balart. Thank you, Madam Chairwoman. I first apologize because, as you know, we have---- Ms. Granger. Absolutely. Mr. Diaz-Balart [continuing]. Conflicting hearings at the same time. Ms. Granger. Right. Mr. Diaz-Balart. Luckily, a few of them are right across the hall. And I--again, I apologize if this has already been touched on. But dealing a little bit with the increase of China's activity throughout, frankly, the world, the past decade or so has seen a huge increase in Chinese aid and development projects throughout Africa. It is apparent the regime's so- called charm offensive is intended to secure political and economic influence throughout the continent. And, the Chinese have also been on this unrelenting quest for natural resources, and we see that wherever they are, including rare earth elements. They bring in, as you know, Chinese labor and equipment without transferring those skills and technology to the local level. It is also pretty clear that they are not, frankly, in the business of exporting, western values, like democracy and the rule of law and human rights. So how--are we using and what can we do--what can the United States do to use our considerable influence to counter and contain some of those actions that China is pursuing rather aggressively? Ms. Thomas-Greenfield. Thank you for that question. And I see this in two aspects. We talk about the fact that some of the problems that we are dealing with in Africa are not just U.S. problems. Interestingly, on South Sudan, we have been working with the Chinese, and they have come onboard with the special envoys to push for an end to the violence in South Sudan. And so I see that our work is partially to encourage change on how the Chinese approach Africa and encourage the Chinese economic activities in Africa to complement what other governments and donors are doing to the best interests of African countries. However, it is our view that a lot of the foreign investment that is going into Africa that the Chinese are providing does not support our values of good governance and transparency and responsible management of natural resources. And we have regular dialogue with African governments to encourage that they also understand why it is so important as they are dealing with the Chinese to have the Chinese take into account issues that are related to human rights and political freedoms and press freedoms. When I was in Liberia--and I use that as an example a lot because I know Mrs. Lowey knows Liberia quite well--the Chinese provided some very useful development projects to Liberia. And so I encouraged the government to make sure that they were getting the best out of those development projects to ensure that the Chinese used local labor as we would use local labor and that they abided by the same transparency rules that we abided by. Again, it is going to be up to African countries to negotiate the best deals for themselves, but we also have a responsibility to ensure that there is a level playing field for American companies that are going into Africa and competing with Chinese companies. So this is something that we are very conscious of, and we continue to work with both governments as well as the Chinese to ensure that their relationships with Africa are not just extractive, but they also contribute to their growth. Mr. Diaz-Balart. Madam Chairwoman, I see that the light is turning yellow; so, I will be very well behaved today. And I yield back. Ms. Granger. I am astounded and pleased. Thank you very much. Ms. Lee. Ms. Lee. It would be the first time. Thank you very much, Madam Chair, and thank all of our witnesses. And let me---- Mr. Cuellar. Second time, 2 weeks ago. Ms. Lee. I especially thank you, Madam Chair, and our Ranking Member for this hearing, because I want to follow up on what my colleague just mentioned with regard to China. Part of the issue is the void that has been left as a result of the lack of focus of the United States as it relates to Africa, and I know that. I was on the authorizing committee for 8 years. I have been very involved on African issues since the 1970s. And so I am really pleased that we are having this hearing today, and I am pleased that Secretary Kerry is going to the continent, pleased about the President's visits, because it was only when we started working with President Bush on PEPFAR that, really, Africa became a focus of most members of Congress. And so it is really important to understand that history and where we are now. Not only China, but Brazil and India are making strategic gains in Africa. And very recently I was there, and part of the issue of promoting American values is a very delicate issue because Africans want to develop their continent and their countries in the way that they see fit, recognizing, though, we have to ensure democracy programs and insistence on the human rights standards and what have you, but we have to be very careful when we do this. And so thank you very much for that. As it relates to--the other thing I wanted to mention is the African heads of state meeting that is taking place here. Thank you very much for that. I want to commend the President and Secretary for this meeting. And I hope that you engage members of Congress in early August in participating in that meeting because that is going to be a very important meeting. Ms. Lee. LGBT issues, you have raised most of the answers to the questions, but we haven't received a formal response. I just want to say, the members of the Congressional Black Caucus, each and every member--unprecedented, historical--wrote to Secretary Kerry to ask exactly what Adam Schiff just mentioned, in terms of how we are going to ensure that comprehensive services are delivered and that people do not lose these lifesaving drugs as it relates to HIV and AIDS, but how we do this through NGOs. And so, we would like to have a formal response to our letter. I wanted to ask you, how are we addressing the issue of these laws in terms of encouraging African governments to look at these laws and how they violate, actually, international standards of human rights, understanding the issues of sovereignty? Ms. Thomas-Greenfield. Thank you for that question. And this is something that we in the Department and across the interagency have been engaged on in an intense way since the passing of these two recent laws in Nigeria and in Uganda, but we were engaged even before that. We were working very, very robustly with both the Nigerians and Ugandan President to discourage them from signing these laws. We clearly failed, but it was not from lack of trying, in terms of our engagement with them. We are engaged with other countries, as well, and we have had some success in discouraging them from passing these laws. This is a huge, huge problem for us. And I have constantly said it is not just an African problem, it is a global problem that we face. I have the issue of dealing with it on the African continent, but I want to make sure that Africans understand this is not just us against them. Ms. Lee. There are about 70 countries, right, throughout the world? Ms. Thomas-Greenfield. Eighty. Ms. Lee. Eighty countries. Okay. Ms. Thomas-Greenfield. Yeah, 80 countries throughout the world, 30-some of them in Africa. A lot of the legislation is old legislation. It is not being enforced. Even Nigeria and Uganda had old legislation that they were not enforcing. This new legislation, however, is much more restrictive in terms of the abilities to associate. So we are continuing to engage with these governments. We are engaging with the LGBT community in both countries, as well as in other countries, to find out from them what they want us to do to assist them. But our policy has been to, in terms of our dialogue with Africans, is to say to them, this is a human right. This is not just about LGBT; it is about how you treat your people across the board. And they have all signed on to human rights agreements, and we are pushing and encouraging them at every level to honor those agreements as it relates to their LGBT community. Ms. Lee. Okay. Just a closing comment--and we are going to have a second go-around, Madam Chair? I serve on the U.N. Commission on HIV and the Law. And while we didn't specifically look at discriminatory laws as it relates to the LGBT community, we looked at the laws which criminalize those living with HIV and the virus. Guess who one of the worst actors is? The United States. We have, I think, 32 States, 2 territories which have criminalization laws on the books. And I want to thank the administration. I have legislation to begin to work with the States to get rid of these laws, because they, once again, are very dangerous and were put on the books in the early 1980s here. Ms. Thomas-Greenfield. And they make it hard for us when we are fighting these issues overseas, because they throw this back at us, that you have not resolved your issues in the United States and you are telling us what to do. And my response is, we are trying to help you avoid the mistakes that we made and do it in a much more efficient fashion. So, again, I do realize that we are still working this issue in the United States, and we will continue to work this issue on the continent of Africa. Ms. Lee. Thank you very much. Thank you, Madam Chair. Ms. Granger. Thank you. Mr. Dent. Mr. Dent. Thanks, Madam Chair. Good morning. A few issues. Last summer, some of us visited Ethiopia with the Aspen Institute, and one issue that came up repeatedly was the matter of accountability of foreign assistance and, I should say, probably the lack of flexibility in our ability, or your ability, to move funds from one area to another. As an example, you may have more funds than you can utilize in a particular country for HIV/AIDS, but malaria or TB or fistula might be a bigger issue. Do you see this as a big problem, this lack of flexibility to move money between accounts in some of these countries where you are oversubscribed in some accounts but undersubscribed in others? I don't know who wants to take this question. Ms. Thomas-Greenfield. Back to you. Mr. Gast. Sure, absolutely. So the way we receive our money is through initiatives and earmarks, and then we apply those funds to countries that meet the requirements for receiving funds. So I would say that the programming of the funds is done on a needs basis, but once the money is in country, it is very difficult to move the money into other areas. Within health, it is easier, but from health to other sectors, it is much more difficult. Mr. Dent. Yes, from health to agriculture, for example, that was an issue. Mr. Gast. Yes. Mr. Dent. That is just something we might want to consider as a committee at some point, to provide that level of flexibility. Another issue, too. We visited, actually, the Oprah Winfrey clinic, the fistula clinic, in Addis Ababa, Ethiopia. As you know, it is a very horrible, debilitating condition. What impediments do you see for the clinics working on these fistula treatments? I thought that was a very impressive facility we saw there. And it is a condition that in this country I guess we more or less dealt with last in the 19th century, but in Africa it is still very real and very problematic. Mr. Gast. Well, two issues I see, Congressman: One is, it requires a high level of training for doctors to treat fistula. And then the second one is, often, women who suffer from it are treated as pariahs. And so that is also very difficult. We have focused our efforts on about 45 locations on the continent. Many of those locations are in conflict-prone zones where often rape and other crimes of war take place, causing fistula. And so we feel that we have a very targeted approach to dealing with it. Mr. Dent. Are there barriers to utilizing U.S. Funding for this fistula work that you are aware of? Mr. Gast. No, there are no barriers. We program annually about $11 million to support fistula and fistula repair, and we believe that that is adequate. Mr. Dent. Thank you. The yellow light is on. I am yielding back. Ms. Granger. Great. Thank you. Mr. Cuellar. Mr. Cuellar. Madam Chair, thank you so much. And thank you all for being here. What I want to do is ask you all some questions on performance. As you know, back in 2010, we passed the modernization of GPRA, the Performance Accountability Act. And there, we asked for certain things to be done, and especially to go more into the performance. Because if we are going to appropriate billions of dollars, we expect to measure those documents. Last year, in the appropriation omnibus bill, we added more specific instructions for you all to follow. I have looked up in performance.gov, where you all have so many performance measures, and I would ask you, if we appropriate X amount of dollars, are these the right measures for us to look at and the public to look at as to your outcomes--you know, we are looking more for results-oriented, but there are different types of measures: outcomes, outputs; efficiency matters, which is what the ranking member mentioned a few minutes ago, how much money you are spending per unit; and, of course, a little bit on customer service. But let me just look at a couple things that you all list and ask your thoughts about this. Under the goal of priority-- one of your priority goals, food security, I believe one of the first measures you put in is the amount of Feed the Future funds disbursed since 2010. What does that measure, how much money we have put in in the last 3 or 4 years? Number one. And I am just picking just a few. Another priority goal, global health. As a performance indicator you have percent of shipments of contraceptive commodities that are on time. Okay, whether those contraceptives get there on time. And I can go on. Another one that you have under the USAID procurement reform, another performance measure you have is the percent of Office of Acquisitions and Assistance series 1102 and BS 93 positions filled. Okay. And I can go on, but I think you get the gist of it. If we are supposed to provide oversight and we are supposed to look at your performance measures, or the taxpayers are supposed to look at the performance measures--and, remember, there are already two. There is the GPRA of 2010 Modernization Act; there is the language we added in the omnibus bill. What are we supposed to get from these performance measures? I mean, what do we get for the dollars? What are the results that we are supposed to get? And I believe these are your measures on performance.gov. Give me your thoughts on this. Mr. Gast. So, allow me to give you my thoughts, Congressman. And you raise very good questions. I think when one looks at the performance measures in isolation that it is not telling the complete story. And so we look at both performance indicators that are related to management actions and then also outcome indicators. And so some of the ones that you mentioned, for example, the amount of money disbursed or the number of agriculture officers that we have in the field, they relate more to management. Are we moving our resources quickly enough so that we can have the impact that we expect for our programming? But let me also address some of the things that we are doing as an agency---- Mr. Cuellar. Are contraceptives getting in on time, is that a measure we should be looking at? Mr. Gast. I believe so, yes. Contraceptives arriving on time or antiretrovirals arriving on time, but--because logistics, especially in Africa, logistical systems aren't always the strongest. Mr. Cuellar. Right. And I would ask you--and I am sure there are other performance measures. I am just going on performance.gov. Mr. Gast. Sure. Mr. Cuellar. I am sure that what we want to look at is performance measures that measure results. And there are internal measures for management. I understand all that. But I would ask you that. If you are going to put certain things in public for legislators or for the taxpayers to look at, that you should put certain measures that are a little bit more---- Mr. Gast. Results oriented. Mr. Cuellar. But, again, I appreciate it. Madam Chair, I will yield the balance of my time to Representative Mario Diaz-Balart because I am sure he has some other questions. I am just kidding. Just kidding. I yield back. Ms. Granger. I knew you were. Mr. Cuellar. The balance of my time. Ms. Granger. I knew you were just kidding. Mr. Cuellar. Thank you so much. Ms. Granger. Thank you. Ms. Wasserman Schultz. Ms. Wasserman Schultz. Thank you, Madam Chair. I want to ask about maternal and child health and the progress on addressing malnutrition. Because I think it goes without saying that we have made some substantial progress; there has been a sustained commitment to it, largely thanks to the leadership of our country. And this committee and our chair and ranking member have both personally been involved in this issue, legislatively. But we are still seeing newborn deaths increasing in some developing countries, you know, even as other indicators are improving. So what do you--and this is probably for USAID or the Millennium Challenge Corporation. To what do you attribute that glaring statistic? And what specifically are you doing to ensure that childhood mortality is declining in all under-5 subgroups? Mr. Gast. I will start. You raised a very good point, Congresswoman, about malnutrition. And, you know, when we look at malnutrition, it is one of the causes of roughly 47 percent of the under-5 deaths. So it is a major contributor to child death, early child deaths, and it is something that we take very seriously. And that is why it is also a tenet of the Feed the Future strategy, where we were focused on the first 1,000 days, from pregnancy to age 2, to address nutrition issues. Where---- Ms. Wasserman Schultz. You probably know that Congressman Diaz-Balart and I were the sponsors of the 1,000-days resolution. Mr. Gast. Thank you. Ms. Wasserman Schultz. You are welcome. Mr. Gast. We are beginning to focus on areas in countries where we have not been able to move the needle. And so that means a concerted effort in working with governments and working with development partners in countries like South Sudan, like Ethiopia, Nigeria, and the DRC. Together, the three--DRC, Nigeria, and Ethiopia--account for about 27 percent of under-5 deaths globally. And so we are working--Ethiopia has made substantial progress, but we are putting more effort into both DRC and into Nigeria, supporting the governments' program. We have just undergone a significant review over the past year with the governments in Nigeria and DRC to make sure that our programs are supporting the governments' strategies, that we are geographically targeted, and that we are using the right interventions to address under-5 death. Ms. Wasserman Schultz. Thank you. Ms. Herrling. So, if I could quickly, as you know, we have a model that we let the data take us to where the binding constraints to growth are in a country. And sometimes that is, in fact, things like stunting in Indonesia. It is incredible, right, it is such a severe problem that it is constraining growth and private investment in a country. And so we will invest in those particular cases. More broadly, I would say our greatest contribution to this space is that we are very purposefully looking to position women as economic agents of change in our countries. So everything we do, starting with that scorecard that is our first interaction with our partners, we are saying, "We expect you to educate your girls." And 3 years ago, we added--we were so thrilled to have an indicator in the global community that measures women's access to the economy. So we are asking our partners, do your women have the right to file for a passport? Can they file as head of household? Can they own a business? Can they sign a contract? This is the dialogue we want to have with our partner countries, and these are the kinds of partners that we end up having. Basically, we believe if women are greater components of the economy, the growth is going to go faster and fairer. And so that is the kind of policy aspect we have. On the operational one, as you know--you have been following our work--we do gender assessments and social assessments of all of our investments. Why? Because we want to make sure, if we can, in design, purposefully look at how to make sure the benefits are shared. We design it that way. Thank you so much for your support in this space, and we look forward to continuing to work on this very important issue. Ms. Wasserman Schultz. Me, too. Thank you very much. I will continue the tradition of the yellow light. Yield back. Ms. Granger. Thank you. Since we have been so efficient in the use of time, if we do that the second round, everybody will get another question. And I think that would be great because this is a very active subcommittee. Let me ask you, Ms. Herrling, about something we talked about earlier today. Recently, I read a draft report discussing with MCC the practice of having a compact and then a second round, and had this discussion. And it made some very good points about the second round and what is happening with those countries. Could you address that? Ms. Herrling. Well, I look forward to seeing the report you are talking about. Look, I appreciate the dialogue we have been having on this issue. You know that we agree that we want time-limited relationships with our countries. We are not looking to be there 20, 30, 40 years. That is not our model. I also appreciate, though, the foresight that this committee had when it established the MCC to recognize that development is a complex business and that, particularly with an agency like ours, where we are constantly looking at where to get the most return on American taxpayer dollars, sometimes that greatest opportunity is, in fact, with countries we have already worked with. And so you will find us there--not always, not in entitlements. The vast majority of our existing compact partners have not gotten second compacts. But I know this is an issue you care about deeply. I think there is lots of common ground. And I hope we can continue the dialogue on this issue. Ms. Granger. One of the points that was made is what a country learns in that first round and then to take them to the second round, then they are practicing what they have learned through that. So it was very compelling. Ms. Herrling. No, it is true. There is a lot of attention focused on what is called the ``MCC effect'' related to reforms countries are willing to take to get in, so our scorecard. But there is this whole other space of ``MCC effect'' on the operational front. So we see countries embracing U.S. procurement standards, environmental standards, design standards, and just implementation. It is quite amazing that these countries can do these large-scale infrastructure projects in 5 years. It is amazing. Ms. Granger. Thank you. Mrs. Lowey. Mrs. Lowey. I have so many other questions, but in the limited time, because the Congressman was kind enough to bring up this issue of Kibera again. And, as you know and I think all of you know, there are probably many Kiberas around the world and many areas where women and children are just struggling to survive every day. I have visited many, but this was among the worst. And I really wonder, in situations like this--are we just perpetuating this, are we facilitating this, and is the U.N. facilitating it. And I wonder, in your interaction with officials who have the power to do something about it, do you have the power and determination to say, ``Enough''? Because this has been here--my staff corrected me, I was there in 2008, but it has been there a long time. No toilets, holes in the ground; government officials collecting money; the inability of micro-enterprise to thrive because they go around and collect from all the women. To what extent do you just, after seeing so much horror, do you get numb by it? Or is there any effort to talk tough to the leaders and say, rather than put another dime in here, we are going to build decent housing? Otherwise, we are just carrying on a situation that is not really living. It is intolerable. I just wonder if you get numbed by it. Ms. Thomas-Greenfield. You don't get numbed by it. I---- Mrs. Lowey. Well, what can you do? Ms. Thomas-Greenfield [continuing]. I was there in December, and I was just horrified. And I was there the last time in 1996, and it hadn't changed. So you are not numbed by it, and you look for solutions. But you can't walk away from it. Because if you walk---- Mrs. Lowey. No, no, I am not saying we should walk away. But I remember, we spoke with the housing minister and others. So, obviously, we had no impact, because it is still there. Ms. Thomas-Greenfield. There are some new houses that are being built away from Kibera, in the same vicinity, but away. But it is such a huge problem, housing across Africa. And sometimes what we will see happening is the government will go and plow down the place, but they are not able to provide alternative housing in an efficient enough fashion for people to have an alternative place to live, so they end up going back into the slums. Or as they push people out of the slums, maybe into decent housing, new people move into those slums. So it is an intractable problem that I think we all feel frustrated by. And we are all looking to work with governments to find solutions, because they have to find the solution. We can't do it on our own. We can't impose the solution on them. Mrs. Lowey. What if we cut off all the money? I guess it would be even more miserable. Ms. Thomas-Greenfield. That is the walking away, and that is the hard part. Mr. Gast. May I add just a few points, Congresswoman? I agree, no one is numbed by it. The trend in Africa is toward urbanization. And so, if families are moving out of slums or if one slum is destroyed, another one comes up, because that is how rapid the urbanization is. And people are leaving the rural areas because they are going to the cities, where they feel there are opportunities. And so one of the things that we are doing through our development programs, certainly Feed the Future is trying to keep people in rural areas to work on farms, to find agriculture as a profession, rather than just subsistence farming. I think it takes a lot of efforts from multiple--from governments, from donor agencies, as well, to resolve this problem. Mrs. Lowey. Well, let me just close. You were there in 1996; I was there in 2008. It is just getting worse. What do you feel you have accomplished there? How much money have we put into Kibera, and what can you say as you look in the mirror and say, well, what have we accomplished? Could we have done it differently? I just feel we are facilitating this horror, and I guess it is hard for me to adjust to this. What do you feel you have accomplished there? Just kept people alive in this existence that is really not an existence? Mr. Gast. Education opportunities, health---- Mrs. Lowey. You are cutting education, so that is not a priority, but it is my priority. Yes? Mr. Gast. It certainly is a priority. Opportunity, micro- enterprise, focusing on women who are living---- Mrs. Lowey. Well, I could say that, too, but, you know, they--I just think this is worth discussion again at some point. Because for those of us who have visited this and seen the corruption and the government involved in the corruption and the women barely struggling to feed their families, I just wonder whether we couldn't do it any differently. But thank you very much---- Ms. Herrling. Well, and I think we would all agree on focusing on the results of our efforts, and we are all trying to tell those stories. And so keeping us accountable to what we are actually delivering is an important thing. And we all have a conversation about, is it value for money? I think we all agree to that, and we all are producing those numbers. Mrs. Lowey. But you notice, when I said, what have you accomplished since 1996, pretty silent here, other than facilitating, perpetuating--well, I---- Ms. Granger. Thank you. Mrs. Lowey [continuing]. Have taken enough time on that one. Thank you. Ms. Granger. We will call on Mr. Diaz-Balart and then Ms. Lee, and then we will close. Mr. Diaz-Balart. Yes. Thank you. I just want to mention what Mrs. Lowey was just saying. This is the group of the strongest supporters that exists in Congress. And if those concerns are here, and they are--and I think she speaks for all of us--imagine how they are outside of this room. And so it is an issue that we need to continue to address, and thank you for bringing that up. My understanding is that USAID provides obviously not only TB resources for tuberculosis but also it is critical in technical assistance to countries with the highest TB burden. Also, USAID also plays a vital role, in my understanding, in TB research, including developing fast-reacting medications, et cetera. Now, my understanding is that the administration's budget proposal dramatically reduces TB spending through USAID by 19 percent. And so this is at a time when drug resistance is spreading. And so here is my question: Can USAID absorb a cut of this magnitude and still carry out its vital mission? Mr. Gast. The short answer is that the President's budget for 2015 recognizes that TB is a problem that needs to be resolved and, also, that there are multidrug-resistant strains of TB that are moving from country to country. But we feel, with the cut, that it can sustain the effort that we currently have. Mr. Diaz-Balart. All right. And since I still have a little bit of time, let me kind of switch gears here. And, obviously, you know, this group is a strong supporter of these specific funding issues, because they play a key role in expanding not only, obviously, in the humanitarian assistance, health programs, the national security implications, but also that it can hopefully also expand our trading partners and our markets in future years. And I know that, you know, I have heard of anecdotes of U.S. Government-funded projects being awarded to non-U.S. business firms. And there was that picture of a sign posted outside on the Chinese-built storage facility project in Uganda that says it is funded by USAID. And so how are our embassies or the Department of State, what are we doing to help ensure as much as we can that sales of U.S. products and services have the best chance of competing abroad and that our funding is hopefully being used by--you know, that we are also going to be helping our domestic economy here? I mean, what are we doing? Are there specific programs to do that? Because, obviously, when you see something like a sign like that, you imagine what that does out there as far as people's perceptions, and, potentially, the reality. Ms. Thomas-Greenfield. Let me just start on the broader point, and that is that we need to do a better job of supporting American companies operating overseas. In many locations where we are in Africa, there may not be the American companies to bid on projects, and we need, again, to ensure that that happens. We have gotten a tremendous amount of support on getting more commercial officers in the field who are qualified and can help us in encouraging and supporting American companies. So that would be the first point of action for us. And then I will turn to my colleagues. Mr. Gast. Very good points, Congressman. Three of the President's initiatives focus on a better trade partnership with Africa: Trade Africa, certainly; Power Africa; as well as Feed the Future. One thing that we are doing, with Congress' support, is transforming our trade hubs. And we have three trade hubs that are on the continent. They were designed originally for African companies to take advantage of AGOA. What we are doing now is transforming them into trade and investment centers, where there is a better marrying of U.S. companies with African companies and associations. And we are beginning to see signs of good progress in enticing and encouraging U.S. companies to either invest or to sell equipment in Africa. Mr. Diaz-Balart. Thank you, Madam Chairwoman. Ms. Granger. Just to add on to that, in discussing your successes, most of the successes involve a high level of collaboration with each other and with the countries. And so to keep that as a best practice, I think, would be very appropriate. Ms. Lee. Ms. Lee. Thank you very much. I will follow up on a couple of these issues. First of all, I am glad Mr. Diaz-Balart brought up the whole issue of investment and trade. And I want to ask you--and I was glad to see MCC's breakdown as it relates to the involvement of women-owned, minority-owned companies. I would like to ask you, did this aggregate that? I would like to see African-American, Latino, and Asian-Pacific American companies, how they break down. One of the issues, though, I just have to say, especially as it relates to--and I am not saying this is factual yet, but I am looking into it. Many of these trade missions that are led by Secretaries to Africa, to the continent, very few minority- owned companies are on these trade missions. I am not sure what the reason is, but I have heard it over and over and over again, to the point where I am going to take my own. Because businesses, black, Hispanic, Asian-Pacific American companies, deserve the opportunities to participate on these trade missions and go over. For example, I want to ask you about Power Africa. How are small, minority-owned businesses, how are they able to get involved and participate in Power Africa? Secondly, following up from Congresswomen Lowey and Granger's question on Kiberia, one of the issues I think that we saw and that I noticed by talking to people who live there is the policies that we support aren't necessarily policies that help them transition from living in such squalor into decent housing. But one of the issues is the economic and social system that has been developed through their lifetime in these slums. If you just build a house and say, ``Move,'' well, what is going to happen to their business? What is going to happen to the benefits that they see by living there? And so I think you have to have, or we have to look at a comprehensive approach and maybe make some suggestions as to how to restructure what we are doing there so that people have that social and economic network as they move forward. Because some people felt they would be abandoned and would not have those structures in place. We definitely need to do something and look at that very, very closely. And, thirdly, as it relates to South Sudan, I don't know what is happening in Darfur because of the atrocities now taking place in South Sudan, but I hope that the Secretary and you all will engage in a sustained effort after his visit to try to really help reduce the violence and help South Sudan get back on course. And that is going to be very important, because if he goes and looks at it, talks to people, comes back, and nothing happens, then, you know, nothing happens. And so thank you again, Madam Chair. But I think Kiberia, all the issues we are talking about, we are talking about today is because there has been a void; we haven't really focused. And this hearing is one of the few that we have begun to focus on what is taking place in Africa. So thank you. Ms. Herrling. Quickly, on the MCC point, I know how much you care about minority businesses having access to our investments. And I hope the fact that we have exceeded the Federal targets on this issue, as well as our own agency targets, is testament to how much we care, as well. When you have a model that is driven around increasing economic growth, you have to know what private sector is identifying as the binding constraints to why they are not investing in these countries. And we seek purposely to unlock those constraints. So it requires us to be in quite careful coordination with the private sector, minority and otherwise, and we do that. So please keep us informed, and we will continue to send data to you. We are always looking for opportunities to gather private sectors together around our compacts, both at the identification-of-constraints stage and, as well, as the specific operations stage. As well, this data alliance that we are forming includes private sector because they, too, want to understand corruption in country, how it is playing out, what they have to be aware of, create an integrity screen, if you will, for their own investments. So there are many, many layers for interaction in our space. Ms. Lee. Darfur and South Sudan? Ms. Thomas-Greenfield. Let me take that question. As you know, Ambassador Booth, our Special Envoy, has been working around the clock. We just got a message from him. He is in Addis now. He was having meetings all day related to Darfur and to the situation in Sudan. So he has not neglected to continue to work on that. But our highest priority right now is cessation, a real cessation, of hostilities between the two sides. They have signed an agreement, and they have continued to fight. And people are continuing to die, and the humanitarian situation is getting worse. The Secretary is going with the goal of bringing about a solution to ending the violence. And that is our hope as we go into a series of meetings not just with the negotiators and the envoys but with the parties to the violence inside of Sudan. And we will be meeting with civil society there, as well, to talk to them about where they see the possibilities. Ms. Lee. Can we--Power Africa, very quickly, Madam Chair? Thank you very much. Mr. Gast. On opportunities for minority businesses, we recently, in the Africa Bureau--in fact, it was just last week--hosted a session with minority-owned businesses on ways that they can cooperate and work with AID, to include on Power Africa. We as an agency have exceeded our goal. We want to do better, but we are very pleased with the results that we have had. Ms. Lee. Okay. We will follow up with you on---- Mr. Gast. And, also, you mentioned---- Ms. Lee [continuing]. That. Thank you, Madam Chair. Ms. Granger. Certainly. Mr. Gast. May I on trade missions? We work very closely with Corporate Council on Africa, and so we can raise that issue with them. They are frequently sponsoring trade missions. Ms. Lee. I appreciate that very much. Ms. Granger. Before I turn to Ms. Lowey, when we are talking about Kiberia, one of the things that was very apparent was how important it is for us to see what you are doing and see what the needs are. I didn't know. I have never been there. I did not picture 2.5 million people, which is what Mrs. Lowey was showing me, which means if you took the citizens from all three of the Members of Congress's districts here, it is more than that. So it is really important that we go out on the ground and see things. Mrs. Lowey. Mrs. Lowey. Yes. As we close, first of all, I want to thank our distinguished chairwoman for having this hearing and having you here today. And we appreciate Secretary Kerry focusing on Africa, and we do wish him success in ending the violence and finding solutions. As we focus on some of the terrible tragedies, I think it is important to end the hearing and congratulate all of us again on 6 million people on HIV treatment, advancement in child mortality rates due to improved access to vaccines, treatment for deadly illnesses--malaria, pneumonia. We have made progress. And I think it is very important as we put our budgets together--and we know the money is not enough to do what we have to do and face the challenges. Working with the Gates Foundation has proved enormously successful. I do hope that there are increased efforts to reach out to other donors, to the U.N., to make sure we are all working together, because we know the challenges are huge. So thank you. Thank you for all your work. We have a lot more work to do. Thank you, Madam Chair. Ms. Granger. Thank you. I thank the witnesses for appearing before the subcommittee today. Members may submit any additional questions for the record. Ms. Granger. The committee will also accept additional statements for the record from other agencies. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Ms. Granger. The Subcommittee on State, Foreign Operations, and Related Programs stands adjourned. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Wednesday, May 7, 2014 UNITED STATES ASSISTANCE TO COMBAT TRANSNATIONAL CRIME WITNESSES AMBASSADOR WILLIAM BROWNFIELD, ASSISTANT SECRETARY, BUREAU OF INTERNATIONAL NARCOTICS AND LAW ENFORCEMENT AFFAIRS, DEPARTMENT OF STATE AMBASSADOR LUIS CDEBACA, OFFICE TO MONITOR AND COMBAT TRAFFICKING IN PERSONS, DEPARTMENT OF STATE Opening Statement of Chairwoman Granger Ms. Granger. The Subcommittee on State, Foreign Operations, and Related Programs will come to order. Today's hearing is on U.S. assistance to combat transnational crime. I would like to welcome our two witnesses from the Department of State, Ambassador Brownfield, Assistant Secretary of the Bureau for International Narcotics and Law Enforcement Affairs, and Ambassador CdeBaca, U.S. Ambassador- at-Large to Combat Trafficking in Persons. Today's hearing will address many of the subcommittee's priorities, such as combating human trafficking, countering the flow of illegal drugs, addressing the wildlife poaching crisis, and stopping the funding that supports terrorist activities. Many of us follow these issues for humanitarian reasons, public safety, or the cause of conservation. But these issues are all directly related to the security and stability in the countries we provide assistance to, as well as our own national security. The outrageous actions of Boko Haram abducting hundreds of girls and claiming to sell them as slaves should remind us all how very real these threats are. This case is also an example of how these issues are linked. Boko Haram is a terrorist organization, and there are reports in the press that some of its members have profited from poaching elephants for their ivory. Boko Haram has been terrorizing the Nigerian people for years, and now they are involved in this horrific case of human trafficking. We want to hear about how the funding this subcommittee provides is being used to confront these types of issues and what is needed for the next fiscal year. Transnational crimes share common traits. The sex and slave trade as well as the demand for animal parts and drugs drives the trafficking problem. Weak government institutions and corruption facilitate the criminal networks, and current laws and law enforcement are not effectively deterring the perpetrators. We would like to hear how these criminal enterprises are related and whether resources can be used to solve more than just one problem. We hope the agencies we fund are coordinating and applying these lessons learned from decades of counternarcotics and anti-trafficking work to other areas of transnational crime. We also want to be sure the funding we provide around the world to improve governance and reduce corruption is focused on addressing transnational crime. This subcommittee included funding in the Fiscal Year 2014 Appropriations Act for programs to combat human trafficking and also for the first time directed funds to address wildlife trafficking. I would like to know more about how those funds will be used, and what has been accomplished to date. In addition to the funding, I would like to hear what new technologies, partnerships, and diplomatic efforts are being used to address these challenges. I was pleased to see the budget request for fiscal year 2015 increased funding to combat trafficking in persons. We know the need is tremendous. The most recent human trafficking report concludes that 40,000 trafficking victims were identified in the last year, and there are some estimates that as many as 27 million men, women, and children are trafficking victims at any given time. Turning to wildlife trafficking, I was disappointed to see the request is down more than 50 percent from what we had included in last year's bill. I should also note that I had to ask for that funding to be provided because it was not included in any of the budget materials. Secretary Kerry has said this issue is a priority, but that is not what was reflected in the budget. In 2013, over 1,000 rhinos were poached in South Africa. This was an all-time high. Cutting the funding in half does not seem like an appropriate response. I would like you both to discuss your plans for fiscal year 2015, including how the funding this subcommittee provides will address the most urgent needs. I will now turn to my ranking member, Mrs. Lowey, for her opening remarks. Opening Statement of Chairwoman Lowey Mrs. Lowey. Thank you, Madam Chair. Assistant Secretary Brownfield, Ambassador CdeBaca, I join the chair in welcoming you and thank you for your service. Transnational criminal enterprises have grown in size and strength, aggressively intimidating and overwhelming government institutions. Transnational criminal syndicates, insurgent groups, and terrorist organizations are now joining forces in collaborative efforts. Reports show that transnational criminal and financial networks have become increasingly sophisticated and exploit countries and regions with weak governance and rule of law. The kidnapping of the schoolgirls in Nigeria is the latest and most glaring example of the nexus between lawlessness, terrorism, and human trafficking. I hope you will begin your testimonies by updating the subcommittee on what we are doing to assist the Nigerian government to find and free these girls. This is a time when we must advocate our values and do more to defend the defenseless. I know we agree that the practice of human trafficking and enslavement is abhorrent. Yet it continues unabated in many regions. Whether for forced sex or labor, estimates suggest that between 2 million to 4 million people, mostly women and children, are trafficked every year. And between 21 million to 29 million people are enslaved. This is appalling. Poaching and wildlife trafficking have also escalated. According to environmental groups, an estimated 30,000 African elephants were killed in 2012. Nonstate armed groups and militias from Congo, Uganda, and Sudan, in addition to terrorist groups such as the Sudanese Janjaweed and al-Shabaab, profit from this horrific exploitation. While I commend the administration for its efforts to combat poaching and wildlife trafficking and the national strategy to combat wildlife trafficking, I am interested to learn what you are doing to address the seemingly insatiable demand for ivory in China and other East Asian countries, which is fueling the ruthless destruction of African wildlife and providing a financing source for terrorists. Have we sought cooperation with China to curb the demand? And what has been the response to date? I am also concerned about the continued reports of violence and abuses perpetrated by police and military units under the pretense of counternarcotics tactics in many Latin American countries. As you know, corruption, weak governance, lack of strong judicial institutions, all exacerbate the potential for systemic abuses of power. The President's strategy to combat transnational organized crime acknowledges that transnational crime cannot be solved through police and military actions alone, a principle I have strongly advocated in my years in leadership on this subcommittee. Our chances for success are greatly improved when, in addition to enforcement capacity, security forces institutionalize mechanisms to ensure transparency, accountability, and respect for human rights and the rule of law. We must continue to work with partner governments to address the underlying poverty and lack of opportunity which criminal organizations use to gain power and influence. More must be done to invest in alternative livelihoods, education, job opportunities for youth. I will continue to insist that any United States programs and funding to fight transnational criminal activities emphasize these tenets. Therefore, I hope to get a greater insight into the administration's objectives and strategies to combat these crimes and threats to international security. I would like the panel to assess the following key issues. What effect has the funding we have provided had on the activities of transnational criminal organizations? How do we break the power and impunity of criminal organizations? Is our policy overly dominated by a counternarcotics agenda while underestimating corruption and human rights concerns? Does the State Department overly rely on interdiction, eradication, training, and equipping law enforcement? How do we improve the capacity of justice systems to protect the rights of citizens? Can we do more to disrupt criminal financing networks? What type of coordination is necessary to succeed? And what challenges are not yet being addressed? Thank you for your testimony. Thank you, Madam Chair. Ms. Granger. Thank you. Before I call on the witnesses, I want to thank all the subcommittee members and tell the witnesses that we are having so many hearings to get our appropriations process finished that the Members are going from one to another, and that is what they have to do. So there will be people coming and going. I now call on the witnesses to give their opening statements. I would encourage each of you to summarize your remarks so we can leave enough time for questions and answers. Your full written statements will be placed in the record, and we will begin with Ambassador Brownfield. Opening Statement of Ambassador Brownfield Ambassador Brownfield. Thank you very much, Madam Chairwoman, Ranking Member Lowey, members of the subcommittee. Thank you all for this opportunity to appear before you to discuss INL efforts against transnational organized crime. I have a formal statement that, with your permission, I will submit for the record and summarize it orally. I have appeared before Congress many times to discuss trafficking in drugs, firearms, and persons, corruption, financial crime, and rule of law. I have never before testified on efforts to combat illegal wildlife trafficking. And while I am here to address any matter involving transnational organized crime, I would like to focus my oral remarks today on wildlife trafficking. Our information is anecdotal, but we estimate that the wildlife trafficking industry earns between $8 billion and $10 billion in illegal revenue every year. A kilo of rhino horn may sell for more than a kilo of cocaine or heroin. And unlike their drug colleagues, wildlife traffickers are exterminating entire species. Last July, the White House released a new national strategy for combating wildlife trafficking. It directed greater efforts to strengthen enforcement, reduce demand, and build international cooperation. Members of the subcommittee, I do not claim the expertise of the conservation community whose noble work has led global efforts to protect wildlife for more than a century. But I do know something about criminal trafficking. I know that all trafficking has elements in common. Demand for the product creates a market, and the market is supplied by criminals growing, manufacturing, or butchering the product. Sophisticated logistics networks move the product to market by corruption and manipulation. An illegal retail system distributes the product to purchasers, and financial systems are corrupted to launder revenues into usable commodities. With strong leadership and support from this subcommittee, the INL bureau has developed a four-pillar strategy to combat this industry. First, we strengthen legislative frameworks so wildlife trafficking is, in fact, a crime around the world. Second, we work to improve law enforcement and investigative capabilities through training and support. Third, we build prosecutorial and judicial capacity to try these crimes. And finally, we enhance cross-border cooperation through wildlife enforcement networks. We have some progress and success to report. In April of last year at our instigation, the U.N. Crime Commission declared wildlife trafficking to be a ``serious crime,'' the most serious category they have. Last November, Secretary Kerry announced the first reward offer of up to $1 million under our new Transnational Organized Crime Rewards Program against the world's largest illegal wildlife trafficking organization, the Laos-based Xaysavang network. And in February of this year, law enforcement from 28 different nations joined together in a month-long coordinated operation called Cobra II, resulting in more than 400 arrests and 350 major illegal wildlife seizures worldwide. Members of the subcommittee, I acknowledge that global law enforcement has been slow to add wildlife trafficking to our list of high priorities. We still have much to learn, but we are here now, and we intend to make an impact. Thank you, Madam Chairwoman, Mrs. Lowey, members of the subcommittee. I look forward to your questions and your guidance. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Ms. Granger. And thank you very much. Ambassador CdeBaca, you are now recognized. Opening Statement of Ambassador CdeBaca Ambassador CdeBaca. Thank you, Madam Chair, Ranking Member Lowey, and members of the subcommittee. We appreciate your support and your ongoing commitment to this fight against modern slavery. And I use the term ``slaver'' purposefully. We use ``human trafficking'' as an umbrella term. It is all of the conduct involved in reducing a person to or holding them in a state of compelled service, whether for labor or commercial sex. Movement may sometimes occur, but it is not a necessary element, but rather a common vulnerability. The common thread in these cases is the deprivation of one person's freedom by another. That is why it is fitting to say slavery, especially this week. Our moral obligation against this crime is clear, but it is also a strategic imperative. Modern slavery undermines the rule of law, it feeds instability, breeds corruption, fuels transnational crime, and taints supply chains that drive the global economy. As you mentioned, Madam Chair, the events of the last week have demonstrated these interrelationships, and we must address it but also must pause to think about the victims, to think about the girls who don't know if someone is looking for them. And we have to answer, yes, we are. And so, I would like to talk about two major functions of our office. First, the annual Trafficking in Persons Report, which measures governments' efforts to fight trafficking. Every year, we look at each country, and we put them on one of four tiers as to what they are doing. The tier ranking system has been extremely effective in motivating governments to combat trafficking, and it has enabled them to more effectively fight this crime. Time and again, we have seen governments change course, often dramatically, when faced with a potential downgrade or confronted by a tough assessment. Time and time again, political leaders and advocates and academics have credited the report with spurring action. And so, in only about a decade, 159 countries have become parties to the United Nations trafficking protocol, modern anti-trafficking laws, specialized law enforcement units, victim assistance mechanisms, public awareness campaigns. And here at home, cutting-edge new laws in every State and almost every territory, again in just a little more than a decade. Now what is important, though, is not to simply think of this as a policy priority, but to think about the people. At the end of the day, the trafficking report doesn't just shine a light on what countries are doing. It is not just a name and shame exercise. Hopefully, at its best, it shines a light on the victims, on the responsibility toward the survivors, on the responsibility of all of us to stamp out slavery once and for all. It also guides our foreign assistance, and that is the second issue I would like to highlight. Since 2002, my office has funded 835 projects around the world worth over $216 million. Every year, because the need so far exceeds the approximately $19 million we have to spend each year in programming funds, we innovate. We identify and we disseminate best practices. We maintain and set the international norms. And knowing that sometimes it will only happen if America does it, we fund support and services to trafficking victims-- not to labels, not to classifications, to people like the women victimized by modern slavery in Sierra Leone who now have access to shelter services for the first time, thanks to one of our grantees. The men who are now recognized as victims of trafficking and receive assistance in Bangladesh through one of our projects. Prior to the work of those organizations and those projects, these underserved populations had no access to service, had no voice. Like the South and Southeast Asian and increasingly African women who find themselves enslaved as domestic servants in the Middle East, the children in West Africa forced to beg on the city streets, and yes, the children, men, and women forced into prostitution and forced labor here at home in the United States. As you said, up to 29 million people, and yet only about 40,000 victims have been identified last year. But because of our trainings, the laws we are helping to write, the service providers and NGOs that we support, and the standards that the TIP report is solidifying around the world, this is changing. In the last year, we have seen countries with their first convictions ever. Countries which once denied having a trafficking problem at all are now proud to work under the three P paradigm of prevention, protection, and prosecution, with robust interagency activities and good cops and social workers on the front lines. These are victories. And with every victory, with every law, with every liberation, with every trafficker brought to justice, we grow nearer to our shared vision, a world free from slavery. Thank you, and I am happy to answer any questions. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Ms. Granger. Thank you so much. I serve as a co-chair of the human trafficking caucus and started before I ever came on this subcommittee. And I am really glad, Ambassador, that you talked about parents who never know what happened to their children or children who wonder if their parents know what happened to them and where they are. And I know that technology--has a huge impact on law enforcement, especially forensics. And I believe that we should be using just every tool we have. I understand the State Department and USAID support programs that use DNA technology for general forensic law enforcement. Are any of these programs focused on preventing human trafficking? Are you considering using DNA technology? Ambassador CdeBaca. We have to some degree. It is something that we look at. I think that what we have seen, though, is with the crushing need to address the people who are identified and identifiable and in weighing the scarce resources against the cost of DNA testing and those large programs, we have instead put most of our eggs in the law enforcement training, victim identification, and national referral mechanisms, so that victims can get up and over to social services. But I do know this is something that a number of folks are working on, especially Interpol, with the notion of DNA testing. And we think it is an arrow in the quiver. Ms. Granger. Good. I had heard about a concept where people are being trafficked across borders, and the DNA technology could be used to identify where they came from. So I would like to talk to you at another date about some of that technology. Ambassador CdeBaca. I think that, but as well the notion of some of the even more rudimentary technology, like X-ray analysis of bones. So that we can see whether the person who has perhaps been liberated in a brothel raid is actually a child rather than an adult, given that a lot of these victims may not even know their own age. Ms. Granger. Thank you. Mrs. Lowey. Mrs. Lowey. Thank you very much. I want to thank you, Mr. Ambassador and Assistant Secretary Brownfield, for your testimony. We know how difficult this work is, and we are all here in the United States listening to the horrors every day. And this last event in Nigeria is so shocking and so disturbing to all of us, and you very eloquently, Mr. Ambassador, listed all the things you are doing. Sometimes I wonder what can we really do? On the same news program we hear about the $23 million that has been invested in President Zuma's home. The corruption in Kenya, the corruption everywhere is so widespread. Maybe I will begin by starting with Assistant Secretary Brownfield. How do we actually break the power and impunity of criminal organizations and urge governments to do more to stop transnational crime? How do you measure or evaluate success? I was pleased, Ambassador CdeBaca, you mentioned some examples of success. What percentage of the total incidents you have been able to declare victory? But Assistant Secretary Brownfield, how do you measure or evaluate success, and how do we actually urge governments to do more to stop transnational crime? Ambassador Brownfield. Sure. Thank you, Mrs. Lowey. May I offer three observations, and these are based upon an inordinate number of years in this business where I have been serving either in INL or elsewhere in the Department of State. First observation, in order to have an impact on a criminal trafficking enterprise, we have to address all elements of the enterprise. We learned the hard way in past decades that if you just attack interdiction or you just attack production, it will not succeed. You have to hit every element. You may prioritize some over others, but you cannot ignore one to the exclusion of all of the others. Second, you must approach from a regional perspective. No country manages or is responsible for a transnational criminal trafficking enterprise on its own. Using Nigeria as an example, Nigeria is in a trafficking sense, in a transnational criminal sense, part of the larger West African region. We have been engaged for the past 3 years in what we call the West Africa Cooperative Security Initiative, linking together all 15 nations of West Africa in a common strategy that deals with Coast Guard capabilities, corrections capabilities, police training capabilities, prosecutorial capabilities across the board in a regional context. Third, you have correctly laid out a lesson that it took us probably 30 years to learn, and that is we must have specific criteria that we are measuring to determine how successful the program or the effort is. From the '70s through the '90s, our approach was to measure input. How many aircraft, how many vehicles, how many people did we push through a training program? We need to go, obviously, to the next step. Perhaps we are measuring homicide rate. Perhaps we are measuring number of individuals who are successfully prosecuted. Perhaps we are measuring number of victims of crime in whatever category, something that tells us in the long term what is our systemic impact. Finally, Congresswoman, if you would permit me, I am going to add a little response to what the chairwoman asked about technology. Madam Chairwoman, we have kind of a cool DNA program on wildlife trafficking as well. I signed off on it this morning. What we are doing is taking samples from the crushed ivory from throughout the world, doing the DNA on that, and using it to map where elephants and rhinos are most being impacted to allow us to focus our efforts. I am sorry, Mrs. Lowey. I took advantage of those 30 seconds to answer a question that was not yours. Mrs. Lowey. First of all, the red light is on, and I know we both have many questions. So we will have another turn, I am sure. And we share the concerns. So I appreciate your responding to the chairwoman. Thank you. Ms. Granger. Thank you. I will now call on Members, alternating between majority and minority based on seniority of those present when the hearing was called to order. I will remind Members you have 5 minutes for your questions and responses from the witness. A yellow light on your timer will appear when you have 2 minutes remaining. If time will permit, and I think it will, we will have a second round. And now I will call on Mr. Crenshaw. Mr. Crenshaw. Thank you, Madam Chairman. And thank you all for being here today. You know, you sit here and you listen. We have got a war against illicit drugs. We have got a war against illicit wildlife trafficking. We have got a war against human trafficking. And you always have to wonder, are we winning the war? And I want to focus on human trafficking because I know in Nigeria everything comes to the forefront. It is just awful. You can't find words to describe it. But that brings a lot of visibility. But the sad thing is every day, all around the world, this kind of activity is taking place. And quite frankly, sometimes when I travel internationally, I would ask the leaders of the country about the TIP sheet, the TIP list. And my impression is that they didn't know a whole lot about it. They would always say, ``Yes, we are level 1. We are level 2.'' And you say, ``What are you doing about it?'' And they would say, ``We are working on it.'' But it seems to me that we have got that TIP sheet, and you talked about some good things that are going on. But I really wonder what is your view of how we are doing worldwide? If 20 million people are part of this--and we don't do a very good job in the U.S. I understand that as well. Florida is probably one of the worst places. You get $20 million, $19 million, and you mentioned you had 800 projects or some number and you have spent a lot of money. Are we really winning or is it getting worse? Is it getting better? Because sometimes I get the impression that nobody cares. There is no visibility. Every now and then some wild, awful, terrible thing happened, and we say that is terrible. You take 300 women and say you are going to sell them. But that is going on every day, and it seems like in the shadows that people don't care about, A, how are we doing, and B, what can we do better? How can we help you do a better job of bringing awareness of this and win that war? Ambassador CdeBaca. I think you are spot on as far as no matter how many zeroes were to be added to the money that we spend, we are still playing catch-up against something that is both cultural as well as criminal. And it is something that only can change if there is political will to change it. You would see a cascade effect on the issues of corruption. The policemen who take bribes to cover this up or even own the bars or the brothels where the women are being held. You know, for me, one of the things that it comes back to is trying to break our own internal U.S. cycle. If you look at the last 250 years, you will have an administration that looks at this and that focuses heavily on it, and then the following administration will drop off. The good work that was being done, frankly, in Florida by the first Roosevelt administration dropped off. Now part of that could have been that we needed the pitch and the turpentine that was being made in the forests by people in debt bondage. We needed them for the war effort in World War I. But it dropped off. One of the things that we have seen in the modern era is this handing off of this issue from President Clinton to President Bush to President Obama, and instead of dropping off, we have seen an intensification. I think that that is where political will comes in, not just as far as the presidency, but as far as the Congress. One of the things that Secretary Kerry challenged all of us to do a few weeks ago at one of the staff meetings was to think about how we bring this up more in our travels. Not just me. Of course, I am going to bring this up everywhere I go. That is my job. But the notion of the regional Assistant Secretaries, the notion of himself when he is talking to Kuwait or someone in the Gulf to raise those issues. So I think part of it is raising it. Part of it is when you are out there, you continuing to raise it. But at the end of the day, I think that some of the things that we are seeing is the notion of how do we make that bigger systemic cultural change? To reject the notion that governments would buy products made with forced labor. To reject the notion that when our folks are on travel that they might, you know, go to prostitutes or engage in things that create the demand. So I think it is as much the cultural as it is the programs. Now, clearly, we are going to try to design our programs well, and we are going to try to disseminate the best practices as much as we can, but we need your help to create the political will. Mr. Crenshaw. Again, I just hope that we, in our country are not immune to this. We need to raise the visibility, and I am not blaming other countries any more than I am blaming ourselves. But I just don't think people focus on this. I mean, this is awful. We all sit here and say how bad it is, but somehow it doesn't get the visibility that it deserves. It needs to be stopped. Thank you. Ms. Granger. Thank you. Mr. Cuellar. Mr. Cuellar. Thank you, Madam Chair. And thank you to both of the witnesses, Ambassador CdeBaca and, of course, Mr. Secretary, also, Brownfield. Good seeing you. Let me, first of all, I also want to record my support on what you are all doing for the young girls in the situation in Nigeria there with the Boko Haram. As the father of two young girls, I think it is just horrible that parents and the kids have to go through that particular ugly, ugly, ugly situation. I know that 3 weeks have gone by. That is a lot of time, you know, for law enforcement and military. But hopefully, you all can follow up on those leads, and I would also ask you all to keep us informed instead of us reading this in the media. Number two, let me direct my attention to south of our border with the traffic in Mexico. A couple of issues, Mr. Secretary. One is, as you know, the Mexican federal government and the state government deal with human traffic, and there is a lot of inconsistencies between the states and the federal government. I would ask you what are you all doing to help coordinate that across the 32 states and, of course, the federal government? What sort of united front are we looking at? The second thing has to do with the judiciary system, prosecutors, et cetera. As you know, a fraction of human sex trafficking is being reported in Mexico, and less than 2 percent are being convicted. You know their conviction rates, generally speaking, are pretty bad. And tied into that, I know your boss, Secretary Kerry, and I disagree with him. I think he is talking about cutting 49 percent of the aid to Mexico. There are some countries that get over $1 billion, and they are able to have ``the capacity to handle that.'' But for some reason, Mexico doesn't have the capacity to do that. And again, I say that simply because we have got a 2,000- mile border, and we spend billions of dollars on the U.S. side. So I would ask you to, you know, if you can address those questions itself and comment on the last one. Ambassador Brownfield. Sure. Let me start, Congressman, and then I will defer to Ambassador CdeBaca, if he has any trafficking in persons specific comments. And I will give more of the Merida Initiative approach. First, the importance of state and local engagement in Mexico. It is a theme that we have been hammering in our dialogue, narrative, and engagement with the federal government of Mexico now for more than 2 years. Both the current administration and, in its last year, the previous administration endorsed the concept. We had about a year during which time, as is to some extent normal, when a new administration comes to office, most new programs were paused under Merida. Beginning with the start of this calendar year, January of 2014, programs have, in fact, begun again with endorsement and support and agreement by the national government of Mexico, and a substantial percentage of those, about 25 percent, are focused on the state and local municipal institutions in Mexico. About one quarter are also focused on the office of the attorney general, the PGR, in the Mexican government as well, 85 million out of 350 million so far agreed to this year. And that is indicative, I hope, of a commitment, as well as a realization that prosecutors and a court structure and administration must be part of any long-term progress in terms of our cooperation with and engagement in Mexico. Finally, Congressman, I, of course, will have to start any commentary in terms of budget requests for support for the Merida Initiative by saying as a member of the Article II branch of Government, that, of course, I support the President's budget request for fiscal year 2015. I, too, noticed that the request level is 45 percent less than it was last year. I will work to ensure maximum effectiveness and value of whatever budget this body, the United States Congress, chooses to appropriate and make available to us. But, yes, I, too, noticed that the request level is 45 percent less than it was for the year before. Mr. Cuellar. Thank you for your great job, Mr. Secretary. Appreciate it. Ms. Granger. Mr. Dent. Mr. Dent is not here. Mr. Diaz-Balart. I am sorry. Mr. Diaz-Balart. Does that mean that I can have his time? Ms. Granger. No, it does not mean that. Mr. Cuellar. And I didn't yield any time to him. [Laughter.] Mr. Diaz-Balart. Thank you, Madam Chairwoman, for this, frankly, very, very important hearing. And again, thank you, gentlemen, for your service to our country. Secretary Brownfield, I remember that I had the pleasure of welcoming you to Miami last summer when the INL and the Port of Miami signed this Memorandum of Understanding expanding security collaboration at ports throughout the Caribbean. And it is an initiative that shares--again, it shares security threats and strengthens safety. And because of your efforts, sir, the Miami-Dade Police Department has trained and graduated members of anti-narcotics units in the national--in the Haitian National Police, something that you were trying to get done and you got done, and obviously without your leadership would have not happened. I mention that, Madam Chairwoman, because last month I had the opportunity to visit Haiti with some of my colleagues, and we met, among others, with the members of the Haitian National Police Academy. And there, we saw firsthand those efforts, how members of the Haitian National Police have been training with the Miami-Dade Police Departments. We also, by the way, met a group of I think it was 18 women, Haitian National Police cadets, who had just gotten back from, I think, 9 months of training in Colombia. So I tell you that, Mr. Secretary, because your efforts and your leadership have made a huge difference. And I was able to witness it firsthand in Haiti and also again seeing the efforts that Colombia, and you were a big part of those efforts when you were Ambassador there. So, again, congratulations on a job well done, and it is great to see. Ambassador Brownfield. Thank you, Congressman. Mr. Diaz-Balart. Let me go a little bit to the issue of a lot of the violence and the human trafficking, as we all know, can be attributed to organized crime. And it is also the gang- related violence or drug smuggling operations that are also involved in human trafficking. And according to INL's International Narcotics Control Strategy Report, 86 percent of the cocaine trafficked to the United States first transits through Mexico and the Central American corridor, to you, Mr. Cuellar's point. It goes through there first. About 75 percent of all cocaine goes, is smuggled through flights departing South America that first land in Honduras. Now strictly on a budgetary issue, Mr. Secretary, the fiscal year 2015 base budget request for your bureau includes an overall cut of $284 million, 28 percent. And again, specifically for the Western Hemisphere, where we have these issues, that request includes a reduction of $135 million. So given the increase of violence in Latin America, and we are seeing what goes on in Latin America with the violence and drug trafficking and obviously the proximity to the United States, let me have your comments as to the realistic--is that funding realistic? Can we really deal, seriously deal with the challenges that we face in our region with those levels of reductions in funding? Ambassador Brownfield. Thank you, Congressman. And sincerely thank you for your remarks in terms of our efforts to engage both State and local law enforcement in the United States, as well as regional efforts in the Caribbean, Central America, and Mexico in our efforts to address and make progress on drug trafficking and other law enforcement issues. Congressman, you put me in a position where once again I will preface my remarks by saying that I, of course, support and endorse the President's fiscal year 2015 budget request. You are correct in your math. The total budget request for international narcotics control and law enforcement is nearly 30 percent reduced from last year's budget request, and you could even do the assessment, which I will not do for you here, as to what the overall State Department budget request has happened to it between 2014 and 2015. You have those figures before you already. I did my own arithmetic while--while listening to you. Our Colombia budget request is, in fact, down 30 percent. Our Mexico budget request is down 45 percent. Our CARSI, Central America budget request is down 30 percent. I believe we are doing good, important, and necessary work in each of those budget accounts. I believe they deliver real value for the American people. I believe we are, in fact, delivering on each of those program areas. But I, of course, support and endorse the President's fiscal year 2015 budget request. Ms. Granger. Thank you. Mr. Yoder. Mr. Yoder. Thank you, Madam Chair. Gentlemen, thank you for your testimony today. A wide variety of topics that I know you are working on, and we certainly appreciate your service. I wanted to ask you a couple of follow-up questions related to human trafficking, and particularly human trafficking into the United States. Do we have an idea of how many people are brought into the United States in a form of either work or sex slavery or some form of human trafficking into the United States each year? How are they most likely to come into the United States; by what means do they get here? What is their easiest form of access? Where are they most likely to be from, how we--where their point of origin is? And then, just with what basic information, as we debate solutions to our national immigration challenges in this country, what components of immigration reform should we look towards that would help your efforts to combat human trafficking into the United States? Ambassador CdeBaca. Thank you, Mr. Yoder, for that question. I think that it shows the interplay between migration and human trafficking very well. Clearly, we have seen over the last 35 years or so, 35 or 40 years, a changing in the percentage of foreign victims of involuntary servitude and slavery as African-American communities have had other opportunities and have no longer been in the fields, on farms and homes around the country. And that has been replaced by--in many ways by foreign workers, often from Latin America, but not always. The vulnerabilities, the previous vulnerabilities of social exclusion of the black community have been replaced by the particular vulnerabilities of the immigrant community. Not having their legal status, not having policing that really is able to talk to them, the language barriers, the cultural barriers. Maybe coming from a place where peonage and debt bondage was the norm, and so they don't even necessarily know that there is not a difference here in the United States. The numbers are tough. The United States, for the last 10- plus years, has chosen not to necessarily try to look at the numbers of who is coming in. The folks over at the Joint Intel Center, the Human Smuggling and Trafficking Center, are doing some work on prevalence issues by now looking at it not as what percentage of border crossers subsequently become enslaved, but rather looking at the very questions that you were asking. Of the people who we have rescued, of the people who have come forward who are getting victim benefits from the government or from the nongovernmental organizations that we fund through HHS and others, what was their story? And by learning from them, by learning from the survivors, I think that we are actually getting a little bit better idea than in the early part of the last decade when there was some preliminary research that didn't really have a strong basis that was talking about 18,000 people a year. Rather, one of the things that we are seeing is what do the victims need, and where are they coming from? Every year, a large percentage of the foreign victims who are enslaved in the United States are from Mexico. Other countries such as Thailand, China, et cetera, kind of rise and fall, depending on the year, depending on the situation. We have seen more people entering through either work-based visas or other legal means than simply coming over the southern border, although either way the vulnerabilities are present. And interestingly enough, one of the things that we have been able to glean from the survivors is that even if they were here illegally--excuse me, even if they were here legally on a visa category, the threat of being turned over to the immigration, even if they didn't do anything wrong, is enough sometimes to make them submit to the traffickers. You asked about components of immigration reform, and I think that is one of the things that we certainly have looked at. And as you know, the United States has been included now in the trafficking report for the last few years, and one of the things that consistently is brought to our attention and that we report on as one of their particular vulnerabilities is the fear of the immigrants in going forward to the local police. Instead of thinking of the local police as being someone who you can go to for help to get out of a brothel, that you can go to for help when you have been beaten up in the field or the house that you work in, rather there is that fear. And whether it is under 287(g), whether it is under Secure Communities, whatever we call it, as long as those people are afraid and in the shadows, somebody is going to take advantage of them. Mr. Yoder. Just so I understand your testimony, is it the majority or a portion? How many of these folks are here under some sort of legal status, but yet they are being corralled in a way that are allowing them to be enslaved in some way? Ambassador CdeBaca. You know, I would have to check in with the folks over at the Human Smuggling and Trafficking Center. I know that they have been trying to suss out those numbers. That is something that we can get with them and try to circle back to you. Mr. Yoder. I just think for all of us to understand how this is occurring, how they are getting into the country--Are they being smuggled in? Are they here legal status?--that has an impact on how we decide our efforts, where we put our resources to try to fix the problem. So thanks for your testimony. Thank you, Madam Chair. Ambassador CdeBaca. Thank you, Mr. Yoder. Ms. Granger. Thank you very much. We will have time and make a second round. I will say I want to associate myself with the concerns on both sides of the aisle on the President's funding request on issues that that truly are a crisis. The number of humans trafficked is just enormous, and then on the poaching situation, I can't even remember how many meetings I have been to talking about that situation. So I won't ask you the question, Ambassador, about wildlife trafficking, which is less than half of what the Congress provided in 2014 on this issue. But I will ask you about the rangers and law enforcement officials. Do they have the training and the equipment they need to respond? I know we have talked about--the equipment, the funding that came from this subcommittee on poaching at one time really had to do a lot with education, how important it is. And now it turned to criminal behavior. And so, it has been directed more to crime fighting because it is a crime. And so, the equipment that is needed is very different. Are they getting the equipment they need? Ambassador Brownfield. I am going to give you a yes and a no answer, Madam Chairwoman. We have concluded that given the amount of resources that we have available to us, that we get greater value by focusing, at least initially, in training and capacity building. The argument being that if you give them equipment, but they don't have the capability, the experience, the understanding in terms of how to use it effectively, you get very little value from your equipment. Whereas, if you train them, even if they are lightly equipped, you get value, and as you can then process or feed equipment in, they are able to use it more effectively. We also have to deal with the fact that wildlife--illegal wildlife trafficking is broadly dispersed, particularly in Southern and Central Africa. And in order to have an impact throughout the region from an equipment perspective, it would come with a price tag that is enormous. I mean, that would dwarf any amount of money that this subcommittee has so far thought about to dedicate to the wildlife trafficking issue. We are trying to compensate to a certain extent for that by using international organization partners. There is the United Nations Office on Drugs and Crime, UNODC, which has taken on illegal wildlife trafficking as a priority issue. And there is a consortium of international organizations that goes by the acronym I-C-C-W-C, or ICCWC, which tries to bring all of the international organizations together to work in a coherent manner on illegal wildlife trafficking. And we believe we can get at least a greater range and scope for our efforts and our support by using, particularly in the Africa context, those international organizations. Ms. Granger. Thank you. Mr. Cuellar. Oh, I am sorry. Mrs. Lowey. Mrs. Lowey. Go ahead. No, you go right ahead. Mr. Cuellar. Oh, no, no. No. Ranking Member? Mrs. Lowey. First of all, before I ask a question on another topic, I want to say bravo. Because my mantra has been ``coordination, coordination, coordination.'' And when we visit countries, the various people don't even know each other that we meet at the Ambassador's house. Thank you. I hope this will be effective. I also want to say this is one area where there is such great cooperation between the chair and the ranking member, between Republicans and Democrats, to increase money for a particular account, I also want to say bravo. I hope you take that message back. I also want to make another quick statement that I was in Kenya several years ago, I think it was 2007, and the Secretary gave an extraordinary speech on corruption. The country is just as corrupt as it was in 2007. So we still have a lot of work to do in that regard. But, Mr. Ambassador, I want to focus on children in adversity and the Action Plan for Children in Adversity to help increase coordination between 7 agencies, 30 offices on international programs working with children. The three primary objectives of APCA are strong beginnings for infants and young children, a family for every child, protection of children from abuse, exploitation, violence, and neglect. Now I know this program is basically USAID. So I would like to know, since it is a USAID program, what oversight does your office have on USAID's implementation, and how are you and the Special Adviser for Children in Adversity coordinating to reach the intended outcomes of this interagency action plan? Thank you. Ambassador CdeBaca. We have been--as you know, there have been a few changes over at USAID as far as some of the personnel around that. So that has been one of the things that we have had to meet that challenge. But I think that what we have seen is that the action plan and the coming together as the task force on children in adversity has given a good platform to really start to front these issues and look at kind of a coordinated strategy. Obviously, each of us has our own statutory mandates, and we have to bring those to bear. But I think that even just the fact of the working groups, the fact of our staff. The person who I put on it, I am proud to say, is one of the folks who started the modern U.S. victim rights movement back in the 1980s and 1990s, a psychologist by training, somebody who is very familiar with this. And I think that what this structure has allowed us to do is identify those people within our own organizations who have the best insights into the needs of the children in adversity and come together that way and harness that. So I think it is something that is really hitting its stride. Right now, I don't think that we can necessarily say that there is a project out there that is a specific children in adversity project that has gone through the entire pipeline. But I think that we are certainly seeing exactly what you suggested, which is through this coordination, through this complementariness between us and USAID, it really is what we have been striving to do on all of our programs, whether it is trafficking persons where we have the lead, whether it is them having the lead on the child protection issues. Mrs. Lowey. Just in conclusion, because I don't know that we are going to have another round, I just want to repeat again my view from the work that we have done together. The American people are good people. We have a philanthropic sector that is--frankly, it is not comparable to any other philanthropic sector anyplace in the world that I have seen. So I am very pleased, Assistant Secretary Brownfield, that you talked about the coordination. But as money is tight and as budgets are going down, and we can mention this area that was discussed today or other areas, it is so important for you to share with us your successes. Because there are too many people who have been our friends, who have been our advocates, that will tell me, well, what can you really do? Where is this money really going? We need the money here at home. What are we doing to accomplish our goals? So the more you can coordinate and the more you can share with us your successes, the better the chair and I and the good members of this committee can back up the importance of this committee and the work we can do on a whole range of issues. Ambassador CdeBaca. And ma'am, the notion of the money that you provide, we are trying to use that as seed money. So if you look, for instance, at one of our projects in India through International Justice Mission, so successful in getting people out of debt bondage that now Google Philanthropy and other philanthropic organizations are picking up that funding and running with it. So we were able to fund proof of concept. We were able to get it off the ground and really act as an angel investor. I think that is the future of how we tie in that type of partnership. So it is not just intergovernmental coordination, but it is with the philanthropic community as well. Mrs. Lowey. And with the philanthropic community with deep pockets, I think it is going to be more important for us than ever before to coordinate and emphasize what the government money is doing. We have to get that message out because not everyone in the Congress are believers as we have here on this committee. So thank you very much. Thank you, Madam Chair. Ms. Granger. Thank you. Mr. Diaz-Balart. Mr. Diaz-Balart. Thank you, Madam Chairwoman. Let me shift a little bit now to Venezuela, if I may? INL's 2014 International Narcotics Control Strategy Report lists Venezuela as both a major money laundering country and a major drug transit country. The report goes on to say that in 2013 Venezuela and U.S. counternarcotics authorities increased regular communications and some case-by-case cooperation. But the fact remains that Venezuela is a major, major--again, as I just mentioned, we have a major problem with Venezuela. Despite the fact that on the surface, there would seem to be some bilateral communications, Venezuela is also listed as a Tier 2 watch list country. And according to State's Trafficking in Persons report, Venezuela is a source of transit, a destination country for men, women, and children subjected to sex trafficking and forced labor. We have seen in the past, and I don't have to get into details, but we have seen in the past how the Venezuelan military has been a part of the problem there. So let me ask you gentlemen, with the--again, the report talks about a porous border with Colombia, the fact the FARC next door, the proximity to the Caribbean. What role is now, if any that you can tell us, does the Venezuelan military play in the drug trade, also in the human trafficking trade? If you want to talk about that, and also is drug trafficking and human trafficking a revenue source for the Venezuelan government? If you could just comment on both those issues, all those issues? Ambassador Brownfield. Shall I start, Lu? Congressman, in about the year 2005, 2006, during the tenure of an obviously very unsuccessful United States Ambassador to Venezuela, the government at that time elected to cease direct cooperation with United States Government on drug trafficking issues and, in a natural process of attrition, eventually attrited down the U.S. presence at the embassy through DEA to support drug trafficking. I think they hit bottom at a number of one, leading the then-subsequent Ambassador never to allow that poor rascal ever to leave country for fear that he would never be allowed back in. As a consequence, we, on an interagency basis and an international basis, developed a strategy, which I guess I call the periphery strategy, and that is operate on the assumption that you do not have cooperation from the government itself and try to address the problem through partners that surround that particular country. And it produced some results, I would argue. Certainly better than not doing anything at all. And every other government of every other country that surrounds Venezuela did cooperate in this effort. As our INCS report for 2012-2013 notes, sometime in the course of the year 2013, for the first time in like 6 or 7 years, there was evidence of some effort on the part of the government to address drug trafficking. Your guess is as good as mine as to why. Was it because they realized that the amount of product that was transiting through Venezuela had exploded by a factor of 10 between roughly 2004 and 2010? Was it because they realized that their own institutions were being hollowed out and corrupted by billions and billions of dollars of illicit revenue? Or was it a power struggle within--within and between members of the government itself? I don't know for sure. We did acknowledge there were some steps. There was some communication, and quite frankly, there was evidence of a reduction in the amount of air traffic that was flowing from Venezuela north through the Central America- Mexico corridor. We still have a challenge there. There still is an estimated 200 tons of cocaine that processes, in our judgment, through Venezuela every year, compared to an estimated 15 to 20 tons 10 years ago. We still have a challenge. I believe it is only right that I acknowledge those areas of progress while at the same time state we clearly have a challenge remaining to address. Mr. Diaz-Balart. Madam Chairman, it is yellow, but if later on, you want to also deal with Ecuador, speaking of Ecuador, of a problem where they expelled 20 civilian military DoD employees. And that is another area. Ms. Granger. Thank you. Mr. Cuellar. Mr. Cuellar. Thank you very much, Madam Chair. Let me direct your attention back to transnational crime in Mexico since we got a 1,954-mile border with Mexico. We were in Mexico City with some members of the Appropriations, including Chairman Rogers, a couple of weeks ago. One of the things we spoke about in our discussion with President Pena Nieto and some of the Mexican officials was the southern border, and the three-ring strategy. So I would like to get your thoughts on the three-ring strategy on the southern border, which includes Guatemala and Belize. Number one, your thoughts on that to help stop some of the drugs and people coming in from Central and South America. Number two, I wish Mexico would establish--I know there is a pilot program, a small pilot program on having joint border patrol work together on the U.S. and Mexican side. I wish they would do that for the whole northern border. And then the third thing is what caught my attention since Texas has allied with Tamaulipas, and you know the state of Tamaulipas, where it is Matamoros or Reynosa or Nuevo Laredo, those areas, I mean, that state is in very, very difficult, very violent situation. The Mexicans at least in Mexico City said they are going to start sending reinforcements. When, how much, I know their resources are being stretched so many ways, but I wish they would do that because that ties in directly to our border there. So your thoughts on a joint Mexican border patrol; two, the southern border; and number three, Tamaulipas. Ambassador Brownfield. Sure. Thanks, Congressman. May I suggest, since I am not unaware of the fact that there are at least three Texans sitting in the room right now-- two sitting on the panel up there and one sitting at the table right here--you make a good point when you remind us and we remind ourselves that when we say southern border, we are thinking one thing. When citizens of Mexico say southern border, they are thinking another thing. But the truth of the matter is we actually have interest in cooperating at both of those borders. I do not have the figures with me right now, although I suspect I could get them within about an hour. But at this point, the overwhelming majority of those entering the United States without proper documentation across our border are, in fact, not citizens of Mexico. They are citizens of, for the most part, Central American countries. Mr. Cuellar. By 53 percent. Ambassador Brownfield. And in order to enter through the U.S. Southwest border, they obviously must have a process through Mexico. And if there were a stronger, more modern, more effective system of controls along Mexico's southern border, that would actually have a positive impact for the United States of America as well. So we have signaled, we have said, and I do intend to support efforts to work with, cooperate with, the government of Mexico in their efforts to strengthen and modernize their own border. A much less complicated process, for reasons of geography. Our border, up between Mexico and the U.S., as you point out, is about 2,000-plus miles long. The border between them and Central America is about 1/10th of that length. Joint patrols. I would--I would say to you we have been working on this issue with the government of Mexico for a number of years. There are sensitivities that you, more so probably than anyone in this room, Congressman, are aware of in terms of Mexican willingness to work jointly with uniformed members of the United States Government or, for that matter, the State governments of Texas, New Mexico, Arizona, and California. I believe we are making progress in that area. We should do it, in my opinion, one step at a time, and we should be careful not to talk too much about it, at least in the early stages, for fear of spooking those that are carefully trying to do such patrolling in the border regions between the United States and Mexico. Third--fire away. Ambassador CdeBaca. I am going to take this as Secretary Brownfield's third, if I might? One of the things that we have seen that has been very effective on the anti-trafficking front is not joint patrol at the border patrol level, but with interior enforcement. And we have been able to work with the Mexican government now in the last few years so that they can come to the United States, take affidavits from the victims in the U.S. that they can use in court in Mexico. Saves the wear and tear on the victims. They can be interviewed in a responsible way. It doesn't retraumatize them. It is allowing us to share our skills with our Mexican counterparts, and it is one of the first times that we have actually seen that notion of joint law enforcement really working. And I think that it is because we see it as a shared responsibility toward those Mexican citizens who found themselves enslaved, whether it was in Mexico or here. It is allowing us to trace the networks all the way from New York City down to a small town in Tlaxcala. And if it wasn't for that kind of cooperation between the two police forces, it wouldn't be happening. Ms. Granger. Thank you. Some Members have one last question, and then I will wrap up. Mr. Diaz-Balart. Mr. Diaz-Balart. Thank you, Madam Chairman. Just if you gentlemen want to, you know, Mr. Secretary, you talked about in the case of Venezuela you look at other partners. Now, for example, Ecuador is now a serious problem. If you want to just briefly touch on your thoughts on that? And lastly, we heard recently, and I think he also testified to the fact, but General John F. Kelly, who is the commander of USSOUTHCOM, stated that--and let me just make sure that I get this right--because of asset shortfalls that, in essence, we are unable to get after 74 percent of suspected maritime drug smuggling. He went on to say that a much larger amount of drugs will flow up from Latin America and that he believes that U.S. authorities only seize about 20 percent of the narcotics in transit to the United States. And a lot of times, by the way, he sees them coming up, but he doesn't have the assets. This is the United States of America we are talking about, in our hemisphere doesn't have the assets to go after them. So it would seem to me that that would be probably one of the most cost-effective ways to deal with that. Now, gentlemen, do you agree with General Kelly's assessment that we are basically only seizing about 20 percent of the narcotics heading to the United States? And again, we have to remember that the same folks that are responsible for drug trafficking, these organized crime groups, tend to be a lot of the same folks who do human trafficking, that do a lot of other--frankly, you know, commit a lot of other atrocities. So let me just kind of throw those both open-ended questions to you to finalize. Ambassador Brownfield. Congressman, may I take your first question first? In some ways, that is the easiest one, and that is the state of play in our cooperation with and engagement in Ecuador. There has been public and press play on the fact that the government of Ecuador has announced their intention that the United States military group will close down and depart Ecuador. They have not announced, but I am quite prepared to acknowledge it right now, the INL section, which has been in Ecuador now for more than 30 years, is also going to close up shop, and we will have them all out by the end of September of this year. There, I think, is going to be one program that extends into the next fiscal year, but you may assume that that decision reflects the reality of the nature of the cooperation that we have with that government as well. And I am not trying to make a political point. I am merely acknowledging where things stand right now in that regard. Your second, larger question, the simplest answer, of course, is I would never disagree with General Kelly. He is much bigger than I am and, quite frankly, I suspect could wipe the floor with me at any time he might choose to do so. But I do not disagree in this particular instance because he is in a position to offer a fairly accurate assessment of what, in his judgment, is getting through, to use kind of a simple term. And it allows me to make a point that I would have made to Mrs. Lowey had time not run out, and that is the challenge that we now confront, ladies and gentlemen of the subcommittee, is we do not have the sorts of budget and resources that we have had in past years. We do have to figure out, to use the truism, how to do more with less. We have got to explore things such as how to work in the interagency community to find out if other parts of the United States Government can perform missions that we previously were doing, but that are roughly consistent with what they are going to be doing anyway. What can we do with international organizations that we haven't done in the past? What can we squeeze out of other potential donors? Because one of the things that is happening on the drug front, Congressman, is much of that cocaine, which, for the last 50 years, flowed from the South to North America, is now flowing east-west. It is flowing from South America to West Africa and Europe or to East Asia. Might we find greater cooperation and willingness to participate by some of them as donors? And finally, even in my line of work, what philanthropic organizations would be prepared to support us? There are very few that work with law enforcement entities, but there are those that do demand and--drug demand reduction, that do treatment and rehabilitation. I believe that is our challenge in this front for the years to come. Ms. Granger. Thank you. Mrs. Lowey. Mrs. Lowey. Well, in closing, one comment and then a question. I have enormous respect, as you can see, for both Assistant Secretary Brownfield and Ambassador CdeBaca, but neither of you have addressed what you are going to do, what are you doing with regard to this--there aren't even words to express what just happened in Nigeria and Boko Haram. So I may give you the opportunity if the red light--you can think about it, the red light doesn't go on. But I also want to ask you a more general question. Natural disasters, such as the earthquake in Haiti or the hurricane in the Philippines, or manmade disasters, such as the civil war in Syria, cause massive movements of people and are fertile ground for transnational criminal organizations. Each year, millions of people are also affected by smaller disasters--floods, droughts--many of which go unreported are recurring and destroy livelihoods. These small-scale chronic disasters roll back development gains, trap people in cycles of poverty, and make them vulnerable to abuse, exploitation, and violence. So are there lessons that you have learned from the conflicts in Syria, the massive movements of people? How can we mitigate the exploitation of these refugees and displaced persons? In your opinion, what is preventing the U.S. Government and the international community from disrupting and dismantling current transnational crime? Is there a need to expand or adjust existing congressional authorities to combat the combined transnational crime threats? Are the available U.S. foreign policy tools sufficient to meet today's challenges? And are such tools effectively implemented? If not, what can we improve? And I want to go back to that first comment I made, Assistant Secretary Brownfield. You may be getting cuts, but there is still a lot of money out there. We are still the most generous nation in the world, and I hate to say this as a Democrat, but we can't always be asking for more money. We have to constantly look at how we are coordinating, how we are using the money. So perhaps you can respond to these root causes of transnational crime and what you are doing about it? Ambassador CdeBaca. One of the things that we have really been looking at over the last few years, the Haiti earthquake I think brought it home to us, but it is something that we had always been focused on. And frankly, with the help of our colleagues at PRM, we are all part of the now what we are calling the ``J enterprise.'' We all report to the same Under Secretary. And Under Secretary Sewall I think is keenly interested in figuring out how she can leverage all of our synergies together so that we don't have me working on one thing, Ambassador Brownfield working on something else, Anne Richard in PRM going in a different direction. And I think that Haiti really showed us the necessity for that. As is often the case, the first response is going to be something that USAID and often the military commands are in charge of. PRM is often going to be coming in very quickly thereafter, using its implementing partners like the International Organization for Migration and others to try to set up shelters, to try to set up the refugee camps and other things. But then we have recognized, and we are thinking that it is about a 6- to 9-month lag time that the traffickers then start coming. They start coming to the refugee camps. People start leaving the refugee camps because they are not feeling that their needs are being met, and they are vulnerable to the allure of the traffickers. And not just the sex traffickers who are almost overtly kidnapping, but even the labor recruiters saying come up and we will see something somewhere else. One of the things that we have heard from the International Organization for Migration, who is the holder of our emergency services contract, is that they are starting to see women now in the Angeles City and Manila area who are coming up from the typhoon damage. That hadn't been happening, but because we use them for anti-trafficking work as well as PRM using them to try to come in and set up shelter and emergency camps and things like that, we think that we have got a bit of an early warning system through the IOM. I do think that there continues to be a challenge, though, because the response is often let us just get the pallets of order in, and we will deal with the Mafia later. But the Mafia guys are already starting to preposition their responses, and we have seen that in southeastern Europe with the Bulgarians coming around where the new Syrian refugees are, just as much as we are seeing it in the Philippines. And I would be happy to address the Nigeria situation as well, depending on how much time. Mrs. Lowey. Maybe because it is the end and because I know how passionately our chair is concerned, we can let you respond to Nigeria as well. Is that okay? Ms. Granger. Sure. Absolutely. Ambassador CdeBaca. One of the things that we have seen in Nigeria over the last few years is the power of innovation, the National Agency for the Prevention of Trafficking, or it is called NAPTIP, which is atypical for its nimbleness in perhaps the Nigerian government, especially on the security side, is a small group that is doing some very good things. We have not yet been able to get in touch with them as far as the situation because I think it is largely being dealt with as a security issue. Certainly the United States help that you may have heard about, which Secretary Kerry offered and that President Jonathan welcomed yesterday, is more operational than it is programmatic. And so, I think that what we will be doing with the NAPTIP, the National Agency to Prevent Trafficking in Persons, is to follow up with our counterparts and our colleagues then to try to make sure that their expertise is actually brought to bear. They are unique in Africa in that they are not simply a police force. They are a combination of police, prosecutors, and social workers because they realize that you have to think about the psychosocial response and the victim care once you are dealing with a trafficking case. This is something--this situation is something that is going to dwarf them as far as what they have done in a given year in the past if, indeed, they are brought in to bear. And we want to make sure that we are as supportive of our colleagues as possible. And I think it is that kind of follow-up, and I know that Assistant Secretary Brownfield has been looking at various policing support as well, and I don't know, Bill, if you want to? Ambassador Brownfield. Sure, I can give it just 30 seconds, Madam Chairwoman. I mean, as---- Mrs. Lowey. We got the okay. Ambassador Brownfield. Our assessment right now is that there is an urgent crisis in Nigeria. It is an operational crisis, and that is to say to rescue some 300 girls who have been kidnapped and are being, at a minimum, misused, if not worse, in terms of what Boko Haram is doing. That is an operational issue. That is a security issue. And the people from the United States Government that are now in the lead are AFRICOM and the Department of Defense and the FBI representing the Federal law enforcement community. That is not a foreign assistance issue. That is an operational issue. It is a foreign assistance issue for which I will be held accountable for us to try to develop programs, equipment, training, capacity building, exchanges that will actually improve the capabilities of Nigerian law enforcement to prevent this from happening again and to be more effective and more responsive against those that would attempt to repeat this sort of thing. And that is our challenge, to be able to take on that activity without undercutting the immediate urgent requirement to put 100 percent of all available assets on the mission of rescuing these girls. Mrs. Lowey. As you know, and Madam Chair and I have talked about this, in Nigeria the government has not responded. And we are dealing with governments that are in too many places corrupt and do not respond. We keep hearing, for example, in Haiti that there are 10,000 NGOs, and I am sure they are all doing good work. We have sent billions of dollars, as have others, but there may be questions about the government in Haiti as to their effectiveness, their efficiency, and their concern about doing the right thing. So we know the challenges that you have, and I know that you have a great deal of support from all of us, and we look forward to continuing to work with you to make sure that all our assets, all the good people like yourselves that are working on these issues are coordinated as effectively as we can, despite failings in government leadership in too many parts of the world. And I thank you. Turn it back to the chair. Thank you very much. Ms. Granger. Thank you. I just have just three brief not questions, just comments as we went through this. One of them had just what Mrs. Lowey was talking about, the coordination. Before I even came on the subcommittee, I was asked by the State Department to take a delegation to look at human trafficking. And I remember we had a meeting, and I was asked, you know, when you think about human trafficking, where do you think it is the most prevalent? And I was wrong on every count. And it is sometimes countries that we don't expect. And so, there has to be a better awareness. And on this trip that we took, we went to donor countries. Moldova was one of them. And recipient. And Greece was one of them. And I think about when we are--when we are working, we, as the United States, there may be less funding, but there is not less attention and not less leadership. And that is what has to occur. In this case, in Moldova, met personally and helped a young woman who had been kidnapped, and she was in Turkey and she tried to escape. She crawled out a window of a seven-story building because the entire building was filled with people who had been trafficked. She fell to the sidewalk. The police found her, found that she was--what happened to her, and gave her back to the people that were trafficking her. And I know you see that still today. And she finally escaped another time, but at great cost to her. So we know so much. There is just so far we can go with how we identify more. We need to attack the problem, and it is just horrendous. The other thing has to do with the use of technologies, and I think about all the improvements and what we know about DNA. And I just think it is a real opportunity in making sure we are using the technologies today in trafficking. In Africa, where--and I think it made a huge difference when I saw it, and it is more attention now, but identifying where they are truly killing whole herds, poisoning the water, all that is happening. And the use of drones to see where are they when it is happening I think we need to certainly--and that we would certainly consider. And that is a coordination situation again, and we just have to do it the very best we can. I appreciate the work both of you have done and continue to do. And please keep us involved. Obviously, we are passionate about this. I thank you for appearing before this subcommittee today. Members may submit any additional questions for the record. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Ms. Granger. The Subcommittee on State, Foreign Operations, and Related Programs stands adjourned. WITNESSES ---------- Page Brownfield, Ambassador William................................... 839 CdeBaca, Ambassador Luis......................................... 839 Gast, Earl....................................................... 691 Herrling, Sheila................................................. 691 Kerry, Hon. J. F................................................. 1 Mendelson, Dr. S. E.............................................. 795 Mendes, Andre.................................................... 803 Power, Samantha.................................................. 597 Shah, Dr. Rajiv.................................................. 431 Thomas-Greenfield, Linda......................................... 691 Zeya, Uzra....................................................... 786 [all]