Text: Powell Says Terrorism Remains First U.S. Priority

(He seeks support for 2003 international affairs budget) (10,615)





U.S. Secretary of State Colin Powell says the president has set two


major foreign policy objectives that must be met before all else --


win the war on terrorism and protect Americans at home and abroad.





"This administration will not be deterred from accomplishing these


objectives. I have no doubt that this committee and the Congress feel


the same way," Powell said in prepared remarks to the Senate Foreign


Relations Committee February 5.





The committee was conducting a hearing on President Bush's fiscal year


(FY) 2003 budget request for international affairs, which totals


$25,400 million, an increase of 5.9 percent over the FY 2002 level.


The budget request includes funding for a wide array of international


assistance programs and for the operations of the State Department and


the U.S. Agency for International Development (USAID).





Powell said that the war on terrorism continues even as reconstruction


begins in Afghanistan following the removal of the oppressive Taliban


regime and destruction of the al-Qaida terrorist network.





"This campaign is transnational, cross-border, even global in a way we


have never contemplated," he said.





The United States is trying to analyze where al-Qaida cells might seek


refuge, he said. And he said several come to mind, including Somalia.





"We are watching Somalia very closely. Terrorism might find fertile


ground there and we do not want that to happen," he said.





Powell also said Yemen has been taking actions that "are a good first


step toward the goal of uprooting the al-Qaida network there."





However, the secretary said, this is not just a campaign against


al-Qaida -- "it is a campaign against terrorism throughout the world."





Powell told the senators that the State Department was seeking $5,000


million to help battle terrorism:





-- $3,600 million for economic and security assistance, military


equipment, and training for front-line states and other partners;





-- $1,400 million for secure diplomatic facilities, including


security-driven construction ($755 million), upgrades for worldwide


security ($553 million), and a new Center for Anti-Terrorism Security


Training ($152 million); and





-- $60 million for an aggressive public diplomacy effort through


international broadcasting to eliminate support for terrorists.





Following are terms and abbreviations used in the text:





-- billion: equals 1,000 million.


-- UN: United Nations.


-- WMD: Weapons of Mass Destruction.


-- EU: European Union.


-- FBI: Federal Bureau of Investigation.


-- CIA: Central Intelligence Agency.


-- INS: Immigration and Naturalization Service.


-- NSC: National Security Council.





Following is a text of Powell's remarks as prepared for delivery:





(begin text)





U.S. DEPARTMENT OF STATE


Office of the Spokesman


February 5


As Prepared





OPENING STATEMENT SECRETARY OF STATE COLIN L. POWELL


AT BUDGET HEARING BEFORE THE SENATE FOREIGN RELATIONS COMMITTEE





February 5, 2002


Washington, D.C.





Mr. Chairman, members of the committee, I am pleased to appear before


you to testify in support of President Bush's budget request for FY


2003.





Before beginning, I want to thank you for confirming almost all of the


nominees for the State Department. They are now hard at work.





Of those who remain to be confirmed, our ambassador-designate to the


Philippines is of particular concern to me. We need Frank Ricciardone


in Manila and we need him there as soon as possible. Not only have we


not had an ambassador there in over 18 months, it is now an even more


crucial requirement as we scale up our assistance in helping President


Arroyo combat the terrorists in her country. So, Mr. Chairman, I ask


for your help in getting Frank confirmed, and in getting the remainder


of our people to work as well.





I also ask that you help me get the FY 2002/2003 State Department


Authorization Bill passed as quickly as possible and that it include


full authorization of our budget request for FY 2003, that it lift the


cap on U.N. Peacekeeping dues, allow us to pay the third tranche of


U.N. arrears with no additional strings attached, and include the


management authorities we have requested. Moreover, I would also be


grateful for your help in removing from the final bill the foreign


policy restrictions, earmarks, and reporting requirements that tie the


Department's hands.





And let me say here at the outset, Mr. Chairman, before I go into the


details of the budget and our foreign policy, that President Bush has


two overriding objectives that our foreign policy must serve before


all else. These two objectives are to win the war on terrorism and to


protect Americans at home and abroad. This Administration will not be


deterred from accomplishing these objectives. I have no doubt that


this committee and the Congress feel the same way.





As many of you will recall, at my first budget testimony last March I


said I was going to break the mold and instead of talking exclusively


about foreign affairs, I was going to focus on the financial condition


of the department -- both in terms of State Department operations and


in terms of foreign operations. I did that because the resources


challenge for the Department of State had become a serious impediment


to the conduct of the nation's foreign policy. And you heard my


testimony and you responded, and we are grateful.





Because of your understanding and generosity, we have already made


significant progress and in the remainder of FY 2002 we will make


more. In new hires for the Foreign Service, we have made great


strides. For example, we doubled the number of candidates for the


Foreign Service Written Examination -- and this year we will give the


exam twice instead of just once. Moreover, our new recruits better


reflect the diversity of our country with nearly 17 percent of those


who passed last September's written exam being members of minority


groups. We have also improved Civil Service recruitment by creating


new web-based recruiting tools. And once we identify the best people


we bring them on more quickly. For Foreign Service recruits, for


instance, we have reduced the time from written exam to entry into


service from 27 months to less than a year. We are also working with


OMB to create extensive new performance measures to ensure that we are


hiring the very best people.





We are also well underway in bringing state-of-the-art information


technology to the Department. We have an aggressive deployment


schedule for our OpenNet Plus system, which will provide desktop


Internet access to our unclassified system for over 30,000 State users


worldwide. We are deploying our classified connectivity program over


the next two years. Our goal is to put the Internet in the service of


diplomacy and we are well on the way to accomplishing it.





In right-sizing our facilities and in shaping up and bringing smarter


management practices to our overseas buildings program, we are moving


forward briskly as well -- as many of you are aware because General


Chuck Williams has been keeping you informed about our progress. In


fact, that is the first change we made, putting General Williams in


charge and giving him assistant secretary equivalent rank. His


Overseas Building Operations (OBO) has developed the Department's


first long-range plan, which covers our major facility requirements


through fiscal year 2007.





The OBO has also developed a standard embassy design concept for


small, medium, and large embassies. This concept will reduce cost


while speeding up construction and enhancing quality. And in making


all of our facilities, overseas and stateside, more secure, we are


also making good headway. By the end of FY 2002, over two-thirds of


our overseas posts should reach minimal security standards, meaning


secure doors, windows, and perimeters. And we are making progress in


efforts to provide new facilities that are fully secure, with 13 major


capital projects in design or construction, another eight expected to


begin this fiscal year, and nine more in FY 2003.





I am also pleased that we have been able to improve the morale of our


State Department families. We are especially proud of our interim


childcare center at the National Foreign Affairs Training Center. It


opened on September 4 and can handle a full complement of 30 infants


and toddlers.





The idea of family and the quality of life that must always nourish


that idea even in the remotest station is uppermost in our minds at


the Department. While we concentrate on the nation's foreign affairs


we must also focus on caring about those Americans who conduct it, as


well as the many thousands of Foreign Service Nationals who help us


across the globe. For example, our 60 Afghan employees in Kabul worked


diligently to maintain and protect our facilities throughout the 13


years the Embassy was closed. They worked at considerable personal


risk and often went months without getting paid. They even repaired


the chancery roof when it was damaged by a rocket attack. This is the


sort of diligence and loyalty that is typical of our outstanding


Foreign Service Nationals.





With regard to our budget, last year I told you that the out years


were a source of concern to me -- and they still are. In fact, given


the costs of the war on terrorism, the downturn in the economy and


accompanying shrinkage of revenues, I am even more concerned this year


than last. But I was confident last year that I could make the case


for State and I am confident this year that I can do so. We have a


solid case to make, and it is the case of how we best pursue America's


interests and there is no doubt in this old soldier's mind that


foreign policy stands foremost among the answers to that "how." And


Mr. Chairman, I am excited about the changes we've made and the


momentum we've developed.





We need to keep that momentum going. That is why for FY 2003 you will


get no break from me. I am going to focus on resources again this year


in my testimony, because it is so critical that we continue to push


the organization and conduct of America's foreign policy into the 21st


Century.





Since that heart-rending day in September when the terrorists struck


in New York, Virginia, and Pennsylvania, we have seen why our foreign


policy is so important.





We have had great success over the past five months in the war on


terrorism, especially in Afghanistan. And behind the courageous men


and women of our armed forces has been the quiet, steady course of


diplomacy, assisting our military's efforts to unseat the Taliban


government and defeat the al-Qaida terrorists in Afghanistan.





We've reshaped that whole region -- a new U.S.-Pakistan relationship,


a reinvigorated U.S.-India relationship, a new Interim Authority in


Kabul, the Taliban gone, and the terrorists dead, in jail, or on the


run. We are also forming important new relationships with the nations


of Central Asia.





In his second visit to the Department last year, President Bush told


us that despite the great tragedy of September 11, we could see


opportunities through our tears -- and at his direction, the


Department of State has been at flank speed ever since, making as much


as possible of those opportunities.





And we need to continue to do so and for many years to come. We will


need resources to do it, so first let me focus on my "CEO dollars",


and then I will turn to foreign policy.





The Budget Priorities for FY 2003: Department of State and Related


Agencies





The President's request for the Department of State and Related


Agencies for FY 2003 is $8.1 billion. These dollars will allow us to:





-- Continue initiatives to recruit, hire, train, and deploy the right


work force. The budget request includes $100 million for the next step


in the hiring process we began last year. With these dollars, we will


be able to bring on board 399 more foreign affairs professionals and


be well on our way to repairing the large gap created in our personnel


structure and, thus, the strain put on our people by almost a decade


of too few hires, an inability to train properly, and hundreds of


unfilled positions. In FY 2004, if we are able to hire the final 399


personnel, we will have completed our three-year effort with respect


to overseas staffing -- to include establishing the training pool I


described to you last year that is so important if we are to allow our


people to complete the training we feel is needed for them to do their


jobs. Soon, I will be back up here briefing you on the results of our


domestic staffing review.





-- Continue to upgrade and enhance our worldwide security readiness --


even more important in light of our success in disrupting and damaging


the al-Qaida terrorist network. The budget request includes $553


million that builds on the funding provided from the Emergency


Response Fund for the increased hiring of security agents and for


counterterrorism programs.





-- Continue to upgrade the security of our overseas facilities. The


budget request includes over $1.3 billion to improve physical


security, correct serious deficiencies that still exist, and provide


for security-driven construction of new facilities at high-risk posts


around the world.





-- Continue our program to provide state-of-the-art information


technology to our people everywhere. Just as I promised you last year,


the budget request will continue projects aimed at extending


classified connectivity to every post that requires it and to


expanding desktop access to the Internet for Department employees. We


have included $177 million for this purpose. Over the past decade, we


let the Department's essential connectivity ebb to very low levels and


we need to correct that situation.





-- Continue and enhance our educational and cultural exchange


programs. The budget request includes $247 million for strategic


activities that build mutual understanding and develop friendly


relations between America and the peoples of the world. These


activities help build the trust, confidence, and international


cooperation necessary to sustain and advance the full range of our


interests. Such activities have gained a new sense of urgency and


importance since the brutal attacks of September. We need to teach


more about America to the world. We need to show people who we are and


what we stand for, and these programs do just that.





-- Continue to meet our obligations to international organizations --


also important as we pursue the war on terrorism to its end. The


budget request includes $891.4 million to fund U.S. assessments to 43


international organizations, active membership of which furthers U.S.


economic, political, security, social, and cultural interests.





-- Continue to try to meet our obligations to international


peacekeeping activities. The budget request includes $726 million to


pay our projected United Nations peacekeeping assessments -- all the


more important as we seek to avoid increasing even further our U.N.


arrearages. U.N. peacekeeping activities allow us to leverage our


political, military, and financial assets through the authority of the


United Nations Security Council and the participation of other


countries in providing funds and peacekeepers for conflicts worldwide.


As we have seen in Afghanistan, it is often best to use American GIs


for the heavy lifting of combat and leave the peacekeeping to others.





-- Continue and also enhance an aggressive public diplomacy effort to


eliminate support for terrorists and thus deny them safe haven. The


budget includes almost $518 million for International Broadcasting, of


which $60 million is for the war on terrorism. This funding will


enable the Voice of America and Radio Free Europe/Radio Liberty to


continue increased media broadcasts to Afghanistan and the surrounding


countries and throughout the Middle East. These international


broadcasts help inform local public opinion about the true nature of


al-Qaida and the purposes of the war on terrorism, building support


for the coalition's global campaign.





Mr. Chairman, on this last subject let me expand my remarks.





The terrorist attacks of 9/11 underscore the urgency of implementing


an effective public diplomacy campaign. Those who abet terror by


spreading distortion and hate and inciting others, take full advantage


of the global news cycle. We must do the same. Since 9/11, there have


been over 2,000 media appearances by State Department individuals. Our


continuous presence in Arabic and regional media by officials with


language and media skills, has been unprecedented. Our international


information website on terror is now online in seven languages.


Internet search engines show it is the hottest page on the topic. Our


25-page color publication, "The Network of Terrorism", is now


available in 30 languages with many different adaptations, including a


full insert in the Arabic edition of Newsweek. "Right content, right


format, right audience, right now" describes our strategic aim in


seeing that U.S. policies are explained and placed in the proper


context in the minds of foreign audiences.





I also serve, ex officio, as a member of the Broadcasting Board of


Governors, the agency that oversees the efforts of Voice of America


and Radio Free Europe/Radio Liberty to broadcast our message into


South Central Asia and the Middle East. With the support of the


Congress, our broadcasting has increased dramatically since September


11. We have almost doubled the number of broadcast hours to areas that


have been the breeding grounds of terrorists. The dollars we have


requested for international broadcasting will help sustain these key


efforts through the next fiscal year.





In addition, Undersecretary Charlotte Beers leads an aggressive effort


to create and implement new programs to reach new audiences. She is


working with private sector companies, government agencies, and with


our embassies to create avenues to broader, younger audiences in


critical regions. One of our new initiatives will focus on Muslim life


in America. It will include television documentaries and radio


programs co-produced with Muslim-Americans, speaker exchanges, and


op-ed pieces. We know that this must be a long-term effort that will


bear fruit only over time. But we must do it. Two of America's


greatest strengths during the Cold War were our vigorous information


and exchange programs. I believe that we can and must build a


comparable capability today if we are to confront successfully the new


threat to our security.





Mr. Chairman, all of these State Department and Related Agencies


programs and initiatives are critical to the conduct of America's


foreign policy. Some of you know my feelings about the importance to


the success of any enterprise of having the right people in the right


places. If I had to put one of these priorities at the very pinnacle


of our efforts, it would be our people. We must sustain the strong


recruiting program we began last year. At the same time, we will


continue measuring our progress not simply on numbers hired but on how


our new hire's enhance the Department's mission. We want to get to a


point where our people can undergo training without seriously


jeopardizing their missions or offices; where our men and women don't


have to fill two or three positions at once; and where people have a


chance to breathe occasionally. Morale at the Department has taken a


definite swing upward and we want it to continue to rise and to stay


as high as possible. As a soldier, I can tell you that such high


morale, combined with superb training and adequate resources, is the


key to a first-class offense -- and that is what our men and women


are, the first line of offense for America.





So, before I turn to foreign policy, let me say once again how


strongly I feel as the CEO of the State Department about this part of


our budget. It is essential that we have the funds necessary to pay


for our operations worldwide.





Foreign Policy: Successes, Challenges, and Opportunities





In addition to the successes of the war on terrorism and the regional


developments its skillful pursuit has made possible, we have been busy


elsewhere as well.





With regard to Russia, President Bush has defied some of our critics


and structured a very strong relationship. The meetings that he had


with President Putin and the dialogue that has taken place between


Russian Foreign Minister Ivanov and me and between Secretary of


Defense Rumsfeld and his counterpart, and at a variety of other


levels, have positioned the United States for a strengthened


relationship with the land of eleven time zones.





The way that Russia responded to the events of September 11 was


reflective of this positive relationship. Russia has been a key member


of the antiterrorist coalition. It has played a crucial role in our


success in Afghanistan, by providing intelligence, bolstering the


Northern Alliance, and assisting our entry into Central Asia. As a


result, we have seriously eroded the capabilities of a terrorist


network that posed a direct threat to both of our countries.





Similarly, the way we agreed to disagree on the ABM Treaty reflects


the intense dialogue we had over eleven months, a dialogue in which we


told the Russians where we were headed and we made clear to them that


we were serious and that nothing would deter us. And we asked them if


there was a way that we could do what we had to do together, or a way


that they could accept what we had to do in light of the threat to


both of our countries from ballistic missiles.





At the end of the day, we agreed to disagree and we notified Russia


that we were going to withdraw from the ABM Treaty. I notified FM


Ivanov -- we talked about our plans for two days. President Bush


called President Putin. Then the two presidents arranged the way we


would make our different announcements. And the world did not end. An


arms race did not break out. There is no crisis in Russia-U.S.


relations. In fact, our relations are very good. Both presidents


pledged to reduce further the number of their nuclear weapons and we


are hard at work on an agreement to record these mutual commitments.


This is all part of the new strategic framework with Russia.





We even managed to come to an agreement on how we are going to work


through NATO. We are now developing mechanisms for pursuing joint


Russia-NATO consultations and actions "at 20" on a number of concrete


issues. Our aim is to have these mechanisms in place for the Reykjavik


ministerial in May. And as we head for the NATO Summit in Prague in


November, I believe we will find the environment for the continued


expansion of NATO a great deal calmer than we might have expected.





I believe the way we handled the war on terrorism, the ABM Treaty,


nuclear reductions, and NATO is reflective of the way we will be


working together with Russia in the future. Building on the progress


we have already made will require energy, good will, and creativity on


both sides as we seek to resolve some of the tough issues on our


agenda. We have not forgotten about Russian abuse of human rights in


Chechnya, Moscow's nuclear proliferation to Iran, or Russian


intransigence with respect to revision of Iraq sanctions. Neither have


we neglected to consider what the situation in Afghanistan has made


plain for all to see: how do we achieve a more stable security


situation in Central Asia? We know that this is something we cannot do


without the Russians and something that increasingly they realize


can't be done without us, and without the full participation of the


countries in the region. We are working these issues as well.





In fact, the way we are approaching Central Asia is symbolic of the


way we are approaching the relationship as a whole and of the growing


trust between our two countries. We are taking issues that used to be


problems between us and turning them into opportunities for more


cooperation. Such an approach does not mean that differences have


vanished or that tough negotiations are a thing of the past. What it


means is that we believe there are no insurmountable obstacles to


building on the improved relationship we have already constructed.





It will take time. But we are on the road to a vastly changed


relationship with Russia. That can only be for the good -- for America


and the world.





We have also made significant progress in our relationship with China.





We moved from what was a potentially volatile situation in April


involving our EP-3 aircraft which was forced to land on China's Hainan


Island after a PLA fighter aircraft collided with it, to a very


successful meeting in Shanghai in October between President Jiang


Zemin and President Bush and an APEC Conference, hosted by China, that


was equally successful.





There are certain shared interests that we have with China and we have


emphasized those interests. They are regional and global interests,


such as China's accession to WTO, stability on the Korean Peninsula,


and combating the scourge of HIV/AIDs. On such issues we can talk and


we can produce constructive outcomes. There are other interests where


we decidedly do not see eye-to-eye, such as Taiwan, human rights,


religious freedom, and missile proliferation. On such issues we can


have a dialogue and try to make measurable progress.





But we do not want the interests where we differ to constrain us from


pursuing those where we share common goals. And that is the basis upon


which our relations are going rather smoothly at present. That, and


counterterrorism.





President Jiang Zemin was one of the first world leaders to call


President Bush and offer his sorrow and condolences for the tragic


events of September 11. And in the almost five months since that day,


China has helped in the war against terrorism. Beijing has also helped


in the reconstruction of Afghanistan and we hope will help even more


in the future.





Moreover, China has played a constructive role in helping us manage


over these past few weeks the very dangerous situation in South Asia


between India and Pakistan. When I could call China's Foreign Minster


Tang and have a good discussion, making sure our policies were known


and understood, it made for a more reasoned approach to what was a


volatile situation. As a result, China supported the approach that the


rest of the international community had taken. Beijing was not trying


to be a spoiler but instead was trying to help us alleviate tensions


and convince the two parties to scale down their dangerous


confrontation -- which now it appears they are beginning to do.





All of this cooperation came as a result of our careful efforts to


build the relationship over the months since the EP-3 incident. We


never walked away from our commitment to human rights,


non-proliferation, or religious freedom; and we never walked away from


the position that we don't think the Chinese political system is the


right one for the 21st century. And we continued to tell the Chinese


that if their economic development continues apace and the Chinese


people see the benefits of being part of a world that rests on the


rule of law, we can continue to work together constructively.





A candid, constructive, and cooperative relationship is what we are


building with China. Candid where we disagree; constructive where we


can see some daylight; and cooperative where we have common regional


or global interests. These are the principles President Bush will take


with him to Beijing later this month. After meeting with Prime


Minister Koizumi in Tokyo and with President Kim in Seoul, the


President will spend a day and a half in Beijing and meet with


President Jiang Zemin, as well as Premier Zhu Rongji. He will have


ample opportunity to put these principles to work.





As we improved our relationship with China, we also reinvigorated our


bilateral alliances with Japan, Korea, and Australia. Nowhere has this


been more visible than in the war on terrorism -- where cooperation


has been solid and helpful.





Prime Minister Koizumi immediately offered Japan's strong support,


within the confines of its constitution. And he is working to enhance


Japan's ability to contribute to such global and regional actions in


the future. President Bush's dialogue with this charismatic and


popular Japanese leader has been warm, engaging, and productive.


Always the linchpin of our security strategy in East Asia, the


U.S.-Japan Security Alliance is now as strong a bond between our two


countries as it has been in the half-century of its existence. Our


shared interests, values, and concerns, plus the dictates of regional


security, make it imperative that we sustain this renewed vigor in our


key Pacific alliance. And we will.





With respect to the Peninsula, our alliance with the Republic of Korea


(ROK) has also been strengthened by Korea's strong response to the war


on terrorism and by our careful analysis of and consultations on where


we needed to take the dialogue with the North. President Bush has made


it very clear that we are dissatisfied with the actions of North Korea


that they continue to develop and sell missiles that could carry


weapons of mass destruction. But we have also made clear that both we


and the ROK are ready to resume dialogue with Pyongyang, on this or


any other matter, at any time the North Koreans decide to come back to


the table. The ball is in Kim Jong-il's court.





The Australians have been clearly forward leaning in their efforts to


support the war on terrorism. Heavily committed in East Timor already,


Canberra nonetheless offered its help immediately and we have been


grateful for that help. The people of Australia are indeed some of


America's truest friends.





As I look across the Pacific to East Asia I see a much-improved


security scene and I believe that President Bush deserves the lion's


share of the credit for this success.





Another foreign policy success is the improvement we have achieved in


our relations with Europe. In waging war together on terrorism, our


cooperation has grown stronger. NATO invoked Article 5 for the first


time ever on September 12. Since then, the European Union has moved


swiftly to round up terrorists, close down terrorist financing


networks, and improve law enforcement and aviation security


cooperation.





Moreover, President Bush has made clear that even as we fight the war


on terrorism, we will not be deterred from achieving the goal we share


with Europeans of a Europe whole, free, and at peace. We continue to


work toward this goal with our Allies and Partners in Europe. While in


the Balkans there remain several challenges to our achieving this


goal, we believe we are meeting those challenges. We have seized war


criminals, helped bring about significant changes in governments in


Croatia and Yugoslavia, and our military forces are partnered with


European forces in Kosovo and Bosnia to help bring stability and


self-governance, while European-led action fosters a settlement in


Macedonia. We need to finish the job in the Balkans -- and we will.





I also believe we have been successful in bringing the Europeans to a


calmer level of concern with respect to what was being labeled by many


in Europe "unbridled U.S. unilateralism".





There was significant concern among the Europeans earlier last year


that because we took some unilateral positions of principle for us


that somehow the U.S. was going off on its own without a care for the


rest of the world. This was particularly true with respect to the


Kyoto Protocol. So we set out immediately to correct this


misperception. Beginning with President Bush's speech in Warsaw, his


participation in the G-8 meetings and the European Union summit, our


extensive consultations with respect to the new strategic framework


with Russia, and culminating in the brilliant way in which the


President pulled together the coalition against terrorism, I believe


that we demonstrated to the world that we can be decisively


cooperative when it serves our interests and the interests of the


world.





But we have also demonstrated that when it is a matter of principle,


we will stand on that principle. In his first year in office President


Bush has shown the international community who he is and what his


administration is all about. That is an important accomplishment --


and one that is appreciated now everywhere I go. People know where


America is coming from and do not have to doubt our resolve or our


purpose. They may not always agree with us, but they have no doubt


about our policy or our position. We want to ensure that this policy


clarity and this firmness of purpose continue to characterize our


foreign policy, and not just with the Europeans but with all nations.





Let me just note that this sort of principled approach characterizes


our determined effort to reduce the threat from weapons of mass


destruction -- an effort well underway before the tragic events of


September 11 added even greater urgency. We and the Russians will


reduce our own deployed nuclear weapons substantially. In the


meantime, we are using a comprehensive approach, along with our


friends and allies, to tackle WMD elsewhere, an approach that includes


export controls, non-proliferation, arms control, missile defenses,


and counter-proliferation. As you heard President Bush say last


Tuesday night in the chambers of this Congress, "the price of


indifference [to WMD] would be catastrophic." There are terrorists in


the world who would like nothing better than to get their hands on and


use nuclear, chemical, or biological weapons. So there is a definite


link between terrorism and WMD. Not to recognize that link would be


foolhardy to the extreme.





Principled approach does not equate to no cooperation. We know that


cooperation is often essential to get things done. On our efforts to


lift countries out of poverty, for example, and to create conditions


in which trade and investment flourish, we need to cooperate. This


summer in Johannesburg, we will participate in the World Summit on


Sustainable Development. There we will have an opportunity to address


such issues as good governance; protection of our oceans, fisheries,


and forests; and how best to narrow the gap between the rich countries


and the poor countries of the world. And that brings me to my next


high mark in our foreign policy for the past year, Africa.





Mr. Chairman, we have crafted a new and more successful approach to


Africa -- the success of which was most dramatically demonstrated in


the WTO deliberations in Doha last November that led to the launching


of a new trade round. The United States found its positions in those


deliberations being strongly supported by the developing countries,


most notably those from Africa. You may have some idea of how proud


that makes your Secretary -- proud of his country, and proud of this


Congress for its deliberate work to make this possible. The Congress


laid the foundation for our efforts with the African Growth and


Opportunity Act -- an historic piece of legislation with respect to


the struggling economies in Africa. In the first year of


implementation of this Act, we have seen substantial increases in


trade with several countries -- South Africa by 11 %, Kenya by 21%,


Lesotho by 51 percent, and Madagascar by a whopping 117%, all based on


the first three quarters of 2001 compared to the same period in 2000.


Likewise, we are very pleased with the excellent success of the first


U.S.-Sub-Saharan Africa Trade and Economic Cooperation Forum, which


was held last October.





A large part of our approach to Africa and to other developing regions


and countries as well, will be a renewed and strengthened concern with


progress toward good governance as a prerequisite for development


assistance. Where conditions are favorable, our development assistance


in Africa will emphasize the vigorous promotion of agriculture.


Agriculture is the backbone of Africa's economies and must be


revitalized to reduce hunger and to lift the rural majority out of


poverty. In addition, we will emphasize fighting corruption and


President Bush's new initiative on basic education. Moreover, we want


to emphasize methods that directly empower individuals -- methods such


as micro lending, a superb vehicle for increasing the economic


participation and security of the working poor. The people of Africa


in particular know that in many cases their governments do not deliver


the health care, transportation and communication networks, education


and training, and financial investment needed to create 21st century


economies. They know that this must change if there is to be hope of


economic success -- of job creation, private investment, stable


currencies, and economic growth.





We also know and more and more of Africa's people are coming to know


that none of this economic success is possible if we do not meet the


challenge of HIV/AIDS. That is why I am pleased to report that pledges


to the Global Fund to Fight AIDS, Tuberculosis, and Malaria now exceed


$1.7 billion and continue to grow. Soon, the Fund is expected to


accept proposals and provide grants to partnerships in those countries


with the greatest disease burden and the least resources with which to


alleviate that burden.





We want the Global Fund to complement national, bilateral, and other


international efforts to fight these dreaded diseases. Strong


congressional support will ensure that the United States remains the


leader in this global humanitarian and national security effort.





I have not exhausted the list of our foreign policy successes either.


In our own hemisphere we have met with considerable success, from the


President's warm relationship with Mexico's President Fox, to the


Summit of the Americas in Quebec, to the signing of the Inter-American


Democratic Charter in Lima, Peru, to our ongoing efforts to create a


Free Trade Area of the Americas -- including, as President Bush


described three weeks ago, not only our current negotiations with


Chile but also a new effort to explore the concept of a free trade


agreement with Central America.





Moreover, we have every expectation that the Financing for Development


Conference in Mexico later this month will be successful. There, the


importance of good governance, trade, and private investment will be


the focus. We need to keep democracy and market economics on the march


in Latin America. And to be sure, there are some dark clouds moving in


now, and one of the darkest looms over Colombia where a combination of


narco-terrorism and festering insurgency threatens to derail the


progress the Colombians have made in solidifying their democracy.





Our Andean Regional Initiative is aimed at fighting the illicit drugs


problem while promoting economic development, human rights, and


democratic institutions in Colombia and its Andean neighbors. Intense


U.S. support and engagement has been the critical element in our


counter-drug successes in Bolivia and Peru and will continue to be


critical as we help our regional partners strengthen their societies


to confront and eradicate this threat to their own democracies and to


America's national security interests.





There is another element to this challenge caused by our intense focus


right now and for the foreseeable future on the war on terrorism. U.S.


military and law enforcement forces previously assigned to interdict


the flow of drugs between South America and the United States have


been reduced by more than fifty per cent. Because of this reduction we


have less capability to stem the flow of drugs from south to north,


thus we will be even more dependent on friendly countries in source


and transit zones to help us deal with the drug threat.





For our Caribbean neighbors, making the situation worse are the end


results of September 11 -- lower growth, decreased tourism, increased


unemployment, decreased tax revenue, and decreased external financial


flows. This economic decline is compounded by high rates of HIV/AIDS


infection and financial crime, as well as the traffic in illicit


drugs.





President Bush's Third Border Initiative (TBI) seeks to broaden our


engagement with our Caribbean neighbors based on recommendations by


the region's leaders on the areas most critical to their economic and


social development. The TBI is centered on economic capacity building


and on leveraging public/private partnerships to help meet the


region's pressing needs.





In addition to its economic provisions, the Third Border Initiative


includes 20 million dollars for HIV/AIDS education and prevention


efforts. This represents a two-fold increase in U.S. HIV/AIDS


assistance to the region in just two years.





As you are aware, Mr. Chairman, our ties to the Caribbean region are


as much cultural and human as they are economic and political. The


countries of the Caribbean attract millions of American visitors every


year and the region is our sixth largest export market. Large numbers


of Caribbean immigrants have found their way to America, including, I


am proud to say, my Jamaican forbearers. Here people from the region


have found freedom and opportunity and have added something wonderful


to the great American cultural mix. But our primary goal must be to


help ensure that the peoples of the Caribbean find new opportunities


for work, prosperity and a better life at home.





At the end of the day, it is difficult to exaggerate what we have at


stake in our own hemisphere. Political and economic stability in our


own neighborhood reduces the scale of illegal immigration, drug


trafficking, terrorism, and economic turmoil. It also promotes the


expansion of trade and investment. Today, we sell more to Latin


America and the Caribbean than to the European Union. Our trade within


NAFTA is greater than that with the EU and Japan combined. We sell


more to MERCOSUR than to China. And Latin America and the Caribbean is


our fastest growing export market. Clearly, the President is right to


focus attention on this hemisphere and we will be working hard in the


days ahead to make that focus productive, both economically and


politically.





Mr. Chairman, in addition to the dark clouds I have described within


our hemisphere, there are vexing problems that persist elsewhere, the


most prominent of which are in the Middle East. The situation between


Israel and the Palestinians, Iraq, and Iran are among our concerns.





With respect to the tragic confrontation between Israel and the


Palestinians, we will continue to try and focus the parties on the


need to walk back from violence to a political process. Our priorities


have been and will remain clear: ending the violence and terror


through establishment of an enduring cease-fire and then movement


forward along the path outlined in the Tenet Security Work plan and


the Mitchell Report recommendations, agreed to by both sides and


supported by the international community. This forward movement would


lead ultimately to negotiations on all the issues that must be


resolved.





Israelis and Palestinians share a common dream: to live side-by-side


in genuine, lasting security and peace in two states, Israel and


Palestine, with internationally recognized borders. We share that hope


for a better tomorrow for both peoples. President Bush expressed this


positive vision in his speech to the United Nations last November, and


I described it in my speech later that month in Louisville. And I


thank one of your Senate colleagues, Senator Mitch McConnell, for


inviting me on that occasion.





We must not become frustrated, or yield to those who would have us


turn away from this conflict -- or from this critical region. As the


President has said, the United States has too many vital interests at


stake to take such a step, and one of those vital interests is the


security of Israel. We must not lose sight of what we have achieved


through our hard work and diplomacy in the region and beyond. There is


a path out of the darkness, accepted by both Israel and the


Palestinians -- the Tenet Work plan and the Mitchell Report. We have


mobilized our friends and allies, including the UN, the European


Union, Russia and others throughout the region and the world, to speak


with one voice in supporting this road back to peace.





But first things first. Our positive vision will never be realized so


long as violence and terror continue. The President and I, and General


Zinni, have been unequivocal with Chairman Arafat. The Palestinian


people will never see their aspirations achieved through violence.


Chairman Arafat must act decisively to confront the sources of terror


and choose once and for all the option of peace over violence. He


cannot have it both ways. He cannot engage with us and others in


pursuit of peace and at the same time permit or tolerate continued


violence and terror. In that regard, I have made clear to Chairman


Arafat that the smuggling of arms to the Palestinian Authority by Iran


and Hizballah aboard the Karine A is absolutely unacceptable. Chairman


Arafat must ensure that no further activities of this kind ever take


place and he must take swift action against all Palestinian officials


who were involved.





Chairman Arafat knows what he must do. Actions are required, not just


words, if we are to be in the position of working effectively again


with him to help restore calm and forward movement. Israel too must


act. Prime Minister Sharon has spoken of his desire to improve the


situation of Palestinian civilians, confronted with a disastrous


economic crisis and suffering daily. We have urged the Israeli


government to act in ways that help ease these hardships and avoid


further escalation or complicate efforts to reduce violence. Difficult


as the present circumstances are, the United States will remain


involved. But, in the end, Israel and the Palestinians must make the


hard decisions necessary to resume progress toward peace.





With regard to Iraq, that country remains a significant threat to the


region's stability. We are working at the UN and elsewhere to


strengthen international controls on Iraq. In the last year, we


successfully stopped the free fall of sanctions and began to rebuild


United Nations Security Council consensus on Iraq. The UNSC


unanimously adopted resolution 1382 in November, committing itself to


implement the central element of "smart sanctions" by May 30 of this


year. This central element, or Goods Review List (GRL), identifies


materials UNSC members must approve for export to Iraq and ensures


continued supervision and control over dual-use goods. Its


implementation will effectively lift economic sanctions on purely


civilian trade and focus controls on arms, especially WMD. This will


further strengthen support for UN controls by showing the


international community that Saddam Hussein, not the UN and not the


U.S., is responsible for the humanitarian plight of the Iraqi people.


We are working with the Russians to get final agreement on the GRL.





At the end of the day, we have not ruled out other options with


respect to Iraq. We still believe strongly in regime change in Iraq


and we look forward to the day when a democratic, representative


government at peace with its neighbors leads Iraq to rejoin the family


of nations.





With regard to Iran, we have a long-standing list of grievances, from


concerns about proliferation to Iran's continued sponsorship of


terrorism. We have been clear in communicating to Teheran that its


support for terrorism remains a serious unaddressed concern -- and


this includes the case of the Karine A transporting arms.





Teheran's latest provocation, besides the arms aboard the Karine A,


has been its apparent unhelpful activities in the post-Taliban


environment of western Afghanistan. This, after being quite helpful as


we prosecuted the war against terrorism in Afghanistan and, at the


Bonn Conference, being helpful with the setup of the Interim Authority


in Kabul.





After citing the list of our grievances with Iran, however, I am still


convinced that we may be able to talk to Iran, that we may be able to


have a reasonable conversation with Iranian leaders. With respect to


the situation in Afghanistan, for example, I believe we can


demonstrate to them that it is not in their interest to destabilize


the government that they helped to create in Bonn. The other issues


will be more difficult; but I do believe constructive talks with Iran


on Afghanistan are possible.





Mr. Chairman, I have not yet spoken at length about the crisis in


South Asia or the war against terrorism, both of which I know are on


all of the committee members' minds. Let me turn to those two very


important matters now.





The Crisis in South Asia





The standoff between India and Pakistan is a very dangerous situation.


Any situation where you have forces that are mobilized and are in


proximity to one another and are at something of a war footing with


nearly a million soldiers deployed, is a dangerous situation. One


where both sides have nuclear and missile capability is dramatically


more so. As President Bush and I worked this issue over the past few


weeks, we noted however that there was an opportunity for a political


and diplomatic solution -- a solution that would avoid what could be a


very disastrous conflict if it came to war.





Prime Minister Blair visited the region in early January. Chinese


premier, Zhu Rongji, visited New Delhi the week of January 14. As you


know, I visited New Delhi and Islamabad three weeks ago. I talked


frequently by phone with General Musharraf and with my counterpart in


India, Foreign Minister Singh. We talked at length about how to reach


a point where the two sides could say, "All right, let's start to


deescalate."





President Musharraf's speech on January 12 was a seminal event. It not


only dealt with terrorism and extremism in a way that I believe New


Delhi found constructive, it sent a clear message to Pakistanis that


terrorism must end if Pakistan is to enter the 21st century with


expectations of progress and a decent life for its people. President


Musharraf showed great courage and foresight in sending such a


decisive message to his country and, by extension, to the Islamic


world at large. Now he must show equal courage in implementing his


concepts in Pakistan.





From the start of this crisis, both New Delhi and Islamabad have


indicated that they want to avoid war, that they are desirous of


solving the standoff through political and diplomatic means. Now, as


we are seeing and as we are hoping, events seem to be progressing


toward that end. We will continue monitoring the situation, urging


restraint and dialogue, and helping where and when we can. We will


encourage both India and Pakistan to refrain from provocative rhetoric


and to move toward redeployment of their military forces. We need to


continue carefully walking down from the very precarious position each


country has created with respect to the other.





Mr. Chairman, let me now turn to the war on terrorism.





The War On Terrorism





A little over two weeks ago, I was in Tokyo to join the European


Union, Saudi Arabia, and Japan in hosting the Afghan Donor Conference.


Representatives from over 60 countries attended, as well as experts


from the Multilateral Development Banks, and a number of U.N.


agencies. The conference helped to ensure that a wide range of


countries will help the Afghans rebuild their country. The United


States pledged $296 million at the conference and others pitched in


accordingly. The total pledged at this point is around $4.5 billion


with more than $1.8 billion for the first year. I am pleased with the


first-year funds, but we must do much better for the long haul.





The heavy lifting with respect to Afghanistan is only just beginning.


We have helped the Afghans remove the oppressive Taliban regime from


their country. We have destroyed the al-Qaida network in Afghanistan,


with our troops mopping up some of the remnants as we speak. We have


made possible the delivery of humanitarian aid, including massive


amounts of food. We have avoided the wholesale starvation that many


predicted. Moreover, we have helped the people of Afghanistan


establish a multi-ethnic Interim Authority in Kabul, led by Chairman


Karzai. One of its ultimate goals is to oversee an agreed process that


will lead to a broad-based Afghan government -- one that represents


all the people of the country, people of every background and region,


women as well as men.





We also have a rare chance to disrupt seriously the flow of opium in


the world, as Afghanistan has been the world's largest source of this


drug, which is the base for heroin. A government that is headed toward


reconstruction, toward building a new and better life for its


citizens, and a government that is concerned with feeding its


population and giving them adequate education, good roads, clean


water, and other needed services, will not be a government that


permits the selling of opium to the world. And such a government needs


to be secure as well.





Many of our key allies and partners are contributing to the


International Security Assistance Force in Kabul to help ensure a


secure environment for Mr. Karzai to build a new Afghanistan. We are


reviewing whether or not more forces might be needed for this force


and we will continue to look closely at the security needs as we move


forward. We want to do everything possible to prevent the rise of any


alternative power to the Interim Authority, until a permanent


government can be established and begin to take care of that challenge


on its own.





Much remains to be done and admittedly a lot of what remains will be


difficult to accomplish. But we believe that at long last Afghanistan


is on a positive track. There is no question that this is a time of


great challenge for the Afghan people, but it is equally


unquestionable that this is also a time of great hope. And, as


President Bush pledged last week during Chairman Karzai's visit to


Washington: "The United States is committed to playing a leading role


in the reconstruction of Afghanistan."





Mr. Chairman, you and several other Senators have been to Afghanistan.


You have seen at first hand the desperate need but also the hope for


the future. You know from your visit how important it is to provide


the needed funds for reconstruction. We must have a long-term


commitment, from America and from the other countries dedicated to


this process. If we can ensure such a commitment, and if we can


achieve proper accountability and use of these funds, then I believe


there is a good chance of making significant progress in bringing a


new future to Afghanistan -- and ending the days of warlordism and


political chaos that bred the Taliban and made a fertile ground for


terrorists.





And as reconstruction begins in Afghanistan, the war against terrorism


continues. As President Bush said last week in his State of the Union


Address, "What we have found in Afghanistan confirms that, far from


ending there, our war against terror is only beginning." The


administration is working together in new ways never before


envisioned. And that's what this effort is going to require. FBI, CIA,


INS, Treasury, State, NSC, the Attorney General and Justice


Department, and others, are all coming together. This campaign is


transnational, cross-border, even global in a way we have never


contemplated.





What we are trying to do on the foreign policy side is to help analyze


where al-Qaida cells might seek refuge. A country that immediately


comes to mind is Somalia because it is quite a lawless place without


much of a government and because it has been this sort of terrorist


haven in the past, providing training camps, communications links, and


financial cover.





We are watching Somalia very closely. Terrorism might find fertile


ground there and we do not want that to happen. No plans have been


made -- yet. But if we find al-Qaida there, you can rest assured we


will take the appropriate action.





We have also had a good dialogue with President Ali Abdallah Salih of


Yemen and we believe that actions he is taking are a good first step


toward the goal of uprooting the al-Qaida network there.





There are other countries we are working with as well, some of whom


have their own sort of terrorist problem that has spillover into our


own problem. The Philippines has the Abu Sayyaf, who in the past have


had connections with al-Qaida. But this is not just a campaign against


al-Qaida -- it is a campaign against terrorism throughout the world.





So we are working with President Arroyo in the Philippines to assist


that country in combating its terrorists -- who as you know right now


hold two American citizens as hostages.





We are also working with the Sudan, a country with whom we have had


major difficulties in the past few years. Even before September 11 we


had been working with the Sudanese, asking them "What do you get for


this? What do you get for letting people like these terrorists have


safe haven in the Sudan? What does it do for you except bring down the


condemnation of the world?" And they have been somewhat responsive.


The problems in the Sudan are not solved by any means. But some new


opportunities have opened up.





As you can see, then, part of our approach to this extended campaign


against terrorism is to work with countries such as the Sudan. We are


not being na?ve, not being unmindful of the challenges that exist, but


using diplomacy, using good people like Senator Danforth and others,


and at the same time cooperating together on intelligence and law


enforcement activities to put a stop to easy passage or safe haven for


terrorists.





We have not made any recommendation to the President about the major


use of military force and the President has made no decision as yet


with respect to such use of force. But there are many other actions


that are taking place -- actions of a law enforcement, political,


diplomatic, financial, and intelligence-sharing nature.





A sizable portion of the President's budget request is dedicated to


these counterterrorism efforts, as you will see as I turn to the


specific priorities of our budget request for Foreign Operations.





The Budget Priorities for FY 2003: Foreign Operations





The President's FY 2003 request for Foreign Operations is a little


over $16.1 billion. These dollars will support the continuing war on


terrorism, the work we are doing in Colombia and the Andean region at


large, our efforts to combat HIV/AIDS and other infectious diseases,


the important work of the Peace Corps and the scaling up of that work,


and our plan to clear arrearages at the Multilateral Development


Banks.





War on Terrorism





As the war on terrorism expands, it will remain the top U.S. foreign


policy priority. To fight terrorism as well as alleviate the


conditions that fuel violent extremism, we are requesting an estimated


$5 billion. In addition to the initiatives outlined previously under


the budget for the State Department and Related Agencies, this funding


includes:





-- Foreign assistance -- $3.5 billion for economic and security


assistance, military equipment, and training for front-line states and


our other partners in the war on terrorism.





-- $3.4 billion from Foreign Operations accounts such as the Economic


Support Fund, International Military Education and Training, Foreign


Military Financing, and Freedom Support Act.





-- $88 million for programs in Russia and other states of the former


Soviet Union to reduce the availability to terrorists of weapons of


mass destruction. Ongoing programs engage former weapons scientists in


peaceful research and help prevent the spread of the materials


expertise required to build such weapons.





-- $69 million for counterterrorism engagement programs, training, and


equipment to help other countries fight global terror, thereby


strengthening our own national security.





-- $4 million for the Treasury Department's Office of Technical


Assistance to provide training and other necessary expertise to


foreign finance offices to halt terrorist financing.





And Mr. Chairman, while in the FY 2003 budget request there is no


money identified at the moment for Afghanistan reconstruction, I know


that President Bush, the Congress, and the American people recognize


that rebuilding that war-torn country must be and will be a multi-year


effort. The Administration will be working closely with this committee


and with the Congress to sustain our contribution in future years.





Andean Counter-drug Initiative





We are requesting $731 million in FY 2003 for the multi-year


counter-drug initiative in Colombia and other Andean countries that


are the source of the cocaine sold on America's streets. ACI


assistance to Andean governments will support drug eradication,


interdiction, economic development, and development of government


institutions. Assisting efforts to destroy local coca crops and


processing labs there increases the effectiveness of U.S. law


enforcement here.





Global Health and HIV/AIDS





In FY 2003, we are requesting $1.4 billion for USAID global health


programs. Of this amount, we are requesting $540 million for bilateral


HIV/AIDS prevention, care, and treatment activities, and $100 million


for the Global Fund to Fight AIDS, Tuberculosis, and Malaria, to which


I referred earlier. All of this funding will increase the already


significant U.S. contribution to combating the AIDS pandemic and make


us the single largest bilateral donor to the effort. I should add that


the overall U.S. Government request for international HIV/AIDS


programs exceeds one billion dollars, including $200 million for the


Global Fund.





The Peace Corps





All of you heard the President's remarks last Tuesday evening with


respect to the USA Freedom Corps and his objective to renew the


promise of the Peace Corps and to double the number of volunteers in


the Corps in the next five years. We have put $320 million for the


Peace Corps in the FY 2003 budget request. This is an increase of over


$42 million over our FY 2002 level. This increase will allow us to


begin the scaling up that the President has directed. In addition to


re-opening currently suspended posts, the Peace Corps will establish


new programs in eight countries and place over 1,200 additional


volunteers worldwide. By the end of FY 2003 the Peace Corps will have


more than 8,000 volunteers on the ground.





MDB Arrears





The FY 2003 request includes an initiative to pay one third of the


amount the United States owes the Multilateral Development Banks


(MDBs) for our scheduled annual commitments. With U.S. arrears


currently now totaling $533 million, the request would provide $178


million to pay one third of our total arrears during the fiscal year.


The banks lend to and invest in developing economies, promoting growth


and poverty reduction. We need to support them.





Summing Up





Mr. Chairman, you have heard from me as CEO of the State Department


and as principal foreign policy advisor to the President. I hold both


responsibilities dear. Taking care of the great men and women who


carry out America's foreign policy is as vital a mission in my view as


helping to construct and shape that foreign policy.





As I told this committee last year and as I have already reminded it


again this year, the conduct of the nation's foreign policy suffered


significantly from a lack of resources over the past decade. I have


set both my CEO hat and my foreign policy hat to correct that


situation. But I cannot do it without your help and the help of your


colleagues in the Senate and across the capitol in the House. I


believe we have demonstrated in the past year that we are worth the


money. I believe we have demonstrated that we can be wise stewards of


the people's money and put it to good use in the pursuit of America's


interests abroad. I also believe that we have demonstrated


conclusively that we are essential to that process of pursuing the


nation's interests. With your able assistance, we will continue to do


so in the months ahead.





Thank you, and I will be pleased to take your questions.





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