Four different Senate Republicans have four different ideas on how to alter U.S. aid to Egypt, in a struggle that is also becoming about the future of Republican leadership on foreign policy.
The Senate is working now on the next Continuing Resolution (CR) to fund the government from April until October -- and aid to Egypt is the main foreign policy issue likely to be attached to the funding measure. Sens. Marco Rubio (R-FL), John McCain (R-AZ), James Inhofe (R-OK), and Rand Paul (R-KY) all have introduced amendments to the CR dealing with Egypt aid, but they all have competing ideas on how to condition it in light of Egypt's changing security challenges and the fragile path to democracy under the government led by Muslim Brotherhood President Mohamed Morsy.
Senate Appropriations State and Foreign Ops Subcommittee Chairman Patrick Leahy (D-VT) has also introduced an amendment on Egypt aid, making it five total amendments that are now the subject of intense behind-the-scenes negotiations.
"We have five different amendments that have been offered on Egypt," Senate Majority Leader Harry Reid (D-NV) said on the Senate floor Thursday, lamenting that the Senate was confronted with tackling the Egypt aid issue in a rush on a temporary funding bill. Reid doesn't really want to do Egypt policy on this bill at all.
"This is a CR for six months. We have a functioning Foreign Relations Committee. That's where this should take place," he said. "We all have concerns about Egypt. Our funding in Egypt, maintaining stability in the region, supporting Israel. We have, as I've indicated, five senators who have filed five separate, distinct amendments. And literally staffs with senators have worked all day coming up with an amendment that Democrats and Republicans could agree on. It hasn't been done. Doesn't mean it can't be done, but it hasn't been done. I would again remind senators that this is a Continuing Resolution. The long-term solution to the situation in the Middle East is not a short-term CR. Whatever we do on this bill would expire in six months anyway."
But despite Reid's reluctance, senators are likely to coalesce around one or two Egypt aid amendments that could get a vote on the Senate floor next week. The first senator to introduce an Egypt amendment was Rubio, who spoke about it in an interview this week with The Cable.
"This is not about cancelling foreign aid to Egypt per se. This is about restructuring it in a way that lines up with the interests of the taxpayers of the United States of America," Rubio said. "Their real security needs are largely internal and we want to recalibrate our military aid to Egypt to meet their actual needs. Egypt doesn't need tanks, it doesn't need jet fighters, it's not going to be invaded by neighbors in the near future."
For Rubio, the Egypt amendment is his opening salvo in what promises to be a year of increasing involvement in an array of foreign policy issues. He promised he would have similar amendments in the future on aid to other countries as well.
"Foreign aid is important because it increases our influence and in particular our ability to influence things around the world to advance our interests. But foreign aid is not charity.... That means that every single dime we give in foreign aid should be conditioned," he said.
Rubio is also concerned about the Morsy government's commitment to the Camp David accords, their unwillingness or inability to maintain security in the Sinai Peninsula, and their treatment of opposition parties and non-governmental organizations.
"We've heard some of the comments of the president of Egypt and some of the leadership of the Muslim Brotherhood. It's downright offensive, and that's their ideology and we've seen some of that come through in their public policy," he said.
Rubio's original amendment would have blocked disbursements of economic support funds (ESF) and new foreign military financing for Egypt until the administration could certify that the Morsy government was enacting economic and political reforms, not restricting religious and human rights, not undermining free and fair elections, improving its treatment of foreign NGOs, fully implementing the peace treaty with Israel, taking all available actions to end smuggling into Gaza and combat terrorism in the Sinai.
The Rubio amendment required the administration to certify that the government of Egypt had apportioned specific amounts of aid to counterterrorism and the Sinai but gave the administration the authority to waive the new aid restrictions every six months.
The McCain amendment takes a different, less confrontational approach. It only would impact foreign military financing, not economic support funds, and clearly states that any change in Egypt military aid should only affect new contracts, not existing contracts for items already in the manufacturing pipeline.
The McCain amendment requires the administration to report back to Congress about how the Egyptian military is spending the money and how it might be spent better in the security interests of both Egypt and the United States. But there's no cut off of aid and no waiver authority. Last year, Egyptians got angry when Congress imposed new restrictions on military aid to Cairo, only to see Secretary of State Hillary Clinton waive them anyway.
After McCain filed his amendment, Rubio made some changes to his amendment to bring it closer in line with McCain's. Rubio's new amendment now conditions ESF funds in a way that's closer to what's already in present law. Backroom negotiations between the two offices are ongoing.
The Leahy amendment is seen as the Democrats' attempt to take what they liked of the Republican amendments and try to reach a compromise text. It most closely follows McCain's approach by requiring the administration to report on the military aid spending but also requires the administration to report on political reform, human rights, and NGO treatment in Egypt.
Paul's amendment would cut off all assistance to Egypt until Morsy says in English and Arabic that he intends to uphold the Camp David accords. Inhofe's amendment would conditionally suspend the sale of F-16 fighter jets to Egypt. Inhofe has also co-sponsored the Paul amendment.
"For months, I have been calling for President Obama and his administration to hold president Morsy accountable for failing to promote promised democracy in Egypt and for the instability in the region," Inhofe said on the Senate floor this week. "Under President Morsy and his radical Muslim Brotherhood, the United States' historically good relationship with Egypt is at a standstill."
Corruption in Iraq is at an all-time high and several other major indicators of progress in the country are on a downward trend, according to a new U.S. government report.
Earlier this month, the Iraqi government fired Central Bank of Iraq (CBI) Governor Sinan al-Shabibi amid allegations of corruption, a move that is both a symptom and a consequence of increased corruption in Iraq and also a possible power grab by Iraqi Prime Minister Nuri al-Maliki, according to the report, published Tuesday by the Office of the Special Inspector General for Iraq Reconstruction.
"This peremptory and constitutionally questionable move occurred as an audit of the CBI's foreign currency auctions surfaced. The audit purportedly found that perhaps 80% of the $1 billion purchased at weekly CBI-managed auctions was tied to illegal transactions, with the funds subject to those transactions potentially lost abroad to money laundering," the report reads.
It continues: "This development is symptomatic of a troubled year in Iraq, evidenced by increasing corruption, resurgent violence, deepening ethno-sectarian strains, growing apprehensions about the conflict in Syria, and widening divides within the coalition government."
Special Inspector Stuart Bowen, in an interview with The Cable, said it's unclear whether the firing of Shabibi was a direct power grab by Maliki, but it does open up the possibility that Maliki will now have greater access to the vast capital reserves the bank holds.
"The facts are that Governor Shabibi was widely respected around the globe amongst financial ministers for building up Iraq's reserves to about $65 billion. And I did know from my discussions in Iraq there was some desire in Iraq to access some of that money for capital expenditure purposes and Shabibi had exerted a firm hand in preventing its use," Bowen said. "The government of Iraq wanted to access some of those reserves."
The Iraqi government's public explanation is that Shabibi was not diligent enough in combatting the money laundering that was going on at the bank, mostly through weekly auctions of dollars for Iraqi dinars. Bowen said that Abdul-Basit Turki, the head of the Board of Supreme Audit, made that money-laundering determination. Basset is now the acting governor of the Central Bank of Iraq.
"The matter of corruption was brought to me by a number of ministers, who noted to me that it's as bad as it's ever been," Bowen said.
The report points to several other negative indicators. For example, Iraq suffered its worst day of violence in more than two years when Vice President Tariq al-Hashimi was sentenced to death in absentia last month, charges that are widely viewed as political in nature. Iraq's relationship with Turkey is deteriorating, the ongoing violence in Syrian presents both political and humanitarian problems for Iraq, and a temporary resolution of Baghdad's oil revenue sharing dispute with the Kurds has not solved the overall problem, the report said.
Official numbers for staffing at the U.S. Embassy in Baghdad, America's largest, have actually gone up despite State Department claims that the embassy was in the process of being downsized. Apparently, the number of staff had been underreported in the past.
"U.S. Embassy-Baghdad reported that 16,035 persons supported the U.S. Mission in Iraq at the end of the quarter, including 1,075 U.S. government civilian employees and 14,960 contractor personnel. The Embassy said the discrepancy was due to earlier underreporting of certain staff categories," the report stated.
"My expectation is that it will be shrinking. We had conflicting reporting about the size of the staff at the embassy," Bowen said. "We'll just have to wait to see how that evolves over the next couple of quarters."
SIGIR also announced in its report the conclusion of several investigations that resulted in either guilty pleas or convictions of persons abusing U.S. taxpayer funds in Iraq, including the guilty plea of the former chief of party in Baghdad for USIP of wire fraud.
Earlier this month, two former employees of the contractor Parsons were sentenced to prison for terms of 27 and 15 months for "conspiring to commit kickbacks, wire fraud, and mail fraud, and for filing false tax returns" and will pay about $2 million in restitution to the U.S. government. And Monday, UK-based Iraqi subcontractor Ahmed Sarchel Kazzaz was sentenced to 15 months in prison and ordered to pay about $1 million in restitution and forfeit another $1 million.
The U.S. government has obligated $60.5 billion to Iraqi relief and reconstruction since 2003.
In January, the SIGIR office will release its final lessons report and three more audits, and then the office will begin to roll up its operations unless Congress sees fit to extend its funding past March. If not, the hope is to take about 20 staffers from SIGIR's investigative unit and move them over to the Office for the Special Inspector General for Afghanistan Reconstruction (SIGAR), Bowen said.
"We have over 80 cases ongoing... the Hill has expressed in continuing the investigative part of SIGIR after the office officially closes down," he said.
Mitt Romney pledged Tuesday to shift foreign aid toward the private sector and deprioritize humanitarian aid in favor of promoting free enterprise and business development around the world.
In remarks at the Clinton Global Initiative, Romney laid out his most detailed proposals on foreign aid thus far, including his plan to move foreign aid to rely more on public-private partnerships that enlist American corporations to the cause of helping the developing world.
"Free enterprise has done more to bless humanity than any other economic system not only because it is the only system that creates a prosperous middle class, but also because it is the only system where the individual enjoys the freedom to guide and build his or her own life. Free enterprise cannot only make us better off financially, it can make us better people," Romney said.
He said that America was a compassionate nation but that Americans wonder why foreign aid often falls victim to corruption and doesn't seem to solve the problems of the developing world. Romney believes that is because the private sector is now playing a much larger role in the developing world than foreign governments.
"If foreign aid can leverage this massive investment by private enterprise, it may exponentially expand the ability to not only care for those who suffer, but also to change lives," Romney said. "For American foreign aid to become more effective, it must embrace the power of partnerships, access the transformative nature of free enterprise, and leverage the abundant resources that can come from the private sector."
Romney then said he would lower the priority of foreign aid as a means to address humanitarian needs, such as health, as well as foreign aid as a means to promote U.S. strategic interests. He said the foreign aid goal that will receive "more attention and a much higher priority" if he is elected would be "aid that elevates people and brings about lasting change in communities and in nations."
Romney invoked the name of Muhammed Bouazizi of Tunisia, "the street vendor whose self-immolation sparked the Arab Spring," and said his protest was based on his desire to work to provide for his family.
"Work. That must be at the heart of our effort to help people build economies that can create jobs for people, young and old alike," Romney said. "Work builds self-esteem. It transforms minds from fantasy and fanaticism to reality and grounding. Work will not long tolerate corruption nor quietly endure the brazen theft by government of the product of hard-working men and women."
A Romney administration would initiate "Prosperity Pacts" through which the U.S. government would work with the private sector to eliminate trade and investment barriers in developing nations in exchange for U.S. aid packages that focus on "developing the institutions of liberty, the rule of law, and property rights," he said.
"The aim of a much larger share of our aid must be the promotion of work and the fostering of free enterprise," said Romney. "Nothing we can do as a nation will change lives and nations more effectively and permanently than sharing the insight that lies at the foundation of America's own economy--free people pursuing happiness in their own ways build a strong and prosperous nation."
"I've laid out a new approach for a new era," he said. "We'll couple aid with trade and private investment to empower individuals, encourage innovators, and reward entrepreneurs."
Romney started his speech with a joke about Clinton's speech endorsing President Barack Obama during the Democratic National Convention in Charlotte.
"If there's one thing we've learned this election season, it's that a few words from Bill Clinton can do any man a lot of good," Romney said. "After that introduction, I guess all I have to do is wait a day or two for the bounce."
Note: The headline on this story has been changed to better reflect Romney's proposals.
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Sen. Rand Paul (R-KY) was all set to get his full Senate vote today on his bill to cut all U.S. aid to Egypt, Libya, and Pakistan; and Sen. Lindsey Graham (R-SC) was set to get a vote on his resolution to establish the sense of the Senate that containment of a nuclear Iran is not an option for U.S. policy.
But the entire deal was derailed by a last-minute effort by Senate leaders to add a new bill to the agreement, a "Sportsman Act" sponsored by Sen. Jon Tester (D-MT), who is up for re-election. Tester's bill would ease restrictions on hunting, fishing, and shooting on federal public lands.
On Thursday afternoon, Senate Majority Leader Harry Reid (D-NV) said that he had worked out a deal with Paul to move on all of the Senate's outstanding business this afternoon, including a continuing resolution to fund the government past Oct. 1. Under the deal, Paul would get one hour of debate and a vote on his bill to cut all U.S. aid to Egypt, Libya, and Pakistan. There would also be a one-hour debate on the containment resolution, which was also led by Sens. Joe Lieberman (I-CT) and Bob Casey (D-PA). (Sen. John McCain (R-AZ) had objected to the deal late Wednesday but lifted his objection Thursday.)
Then suddenly Thursday afternoon, Reid announced there would be no more votes and he took a swipe a Sen. Scott Brown (R-MA), accusing him of wanting to avoid his evening debate with challenger Elizabeth Warren.
Multiple senators and staffers said late Thursday that it was Reid, however, who derailed the deal at the last minute by attempting to add the Tester bill, prompting an objection by the GOP Senate leadership.
"Today, [Senate Minority Leader Mitch] McConnell has agreed to the same UC [unanimous consent agreement] that was offered last night by Senator Reid, but now Senator Reid wants a UC that includes not just the Paul, Graham, and [continuing resolution] votes, but also a vote on the Tester amendment," Sen. Bob Corker (R-TN) said Thursday afternoon.
All Senate business is on hold while the leadership of both caucuses negotiates behind closed doors. Paul had repeatedly threatened to oppose unanimous consent to move any legislation unless he got his vote, so without a deal, Senate leaders would have to go through long voting procedures that could keep lawmakers in town well into the weekend.
Senators do hope to leave town this weekend, so a deal Friday is widely expected. A deal would also pave the way for the Senate to confirm a host of ambassadors before leaving Washington, including the nominees for envoy posts in Iraq and Pakistan.
The containment resolution has more than 80 co-sponsors and is expected to pass by a wide margin. The Paul bill to prohibit aid to Egypt, Libya, and Pakistan is not expected to pass.
The Palestine Liberation Organization has denied recent reports that the White House issued a notice threatening to cut all aid to the Palestinian Authority if it launches a renewed drive for recognition at the United Nations.
"This is absolutely not true," PLO representative to Washington Maen Rashid Areikat told The Cable this week. "We do not know what they are saying. It's unfounded."
According to numerous online sources, Palestine National Council political chairman Khaled Mesmar, an Obama administration envoy issued the threat during a recent visit to Ramallah, and Areikat's comments come just days after senior Palestinian negotiator Saeb Erekat announced that the Palestinian Authority plans to ask the U.N. General Assembly to recognize Palestine as an observer state. Last year's bid for statehood membership was blocked by the United States, and the top foreign aid leaders in the House of Representatives issued a similar threat in August 2011.
On Capitol Hill, the Palestinian Authority has faced increasing scrutiny since it sought U.N. recognition last September. House Foreign Relations Committee chairwoman Ileana Ros-Lehtinen (R-FL) has spearheaded congressional efforts to prevent federal budgetary allocations to the Palestinian Authority -- which have averaged nearly $600 million since Fiscal Year (FY) 2008 -- from being released, along with House Appropriations State and Foreign Ops subcommittee chairwoman Kay Granger (R-TX). In March, Ros-Lehtinen agreed to release $88.6 million of $147 million slated for Palestinian development aid in the West Bank and Gaza that Republican lawmakers had placed on hold in August 2011, but Secretary of State Hillary Clinton overruled the decision and notified Congress in April that the entire package would be disbursed.
"On the congressional level I think that what we are facing is a total ignorance and lack of understanding of the political dynamics and variables that are involved in U.S. assistance to the Palestinians," Areikat said in a short interview. "We are shocked to know that these members of Congress don't even have the minimum knowledge or understanding of Palestinian positions or the impact of U.S. assistance on improving the living, economic, and humanitarian positions of the Palestinian people. Resorting to this tool to try to influence Palestinian leaders into changing their political position is something that has proven in the past to be counterproductive, and it will not lead to a change in the Palestinian political position."
As Ros-Lehtinen continues to place holds on FY2012 funds, however, the Palestinian Authority is facing financial collapse. Saudi Arabia transferred $100 million in aid to the Palestinian Authority after Israel applied for a $100 million International Monetary Fund loan on its behalf and was refused, but the PA's budget deficit for the current year has already surpassed the $1 billion mark. Palestinian Prime Minister Salam Fayyad said Monday that the PA is unable to pay about 150,000 of its employees.
The House's stance on foreign aid to the Palestinians has drawn the attention and ire of Senate Foreign Relations Committee chairman John Kerry (D-MA).
"House Republicans want to cut off aid to the Palestinian Authority," he said during a speech at the U.S. Global Leadership Coalition's annual conference on Tuesday. "I can't imagine anything that would tumble the Middle East more rapidly into a radical tailspin."
Rep. Adam Smith (D-WA), a co-signatory of the Cohen-Yarmouth-Connolly letter, which stresses the importance of American leadership to resolve the Israeli-Palestinian conflict, agrees.
"No, I do not support cutting off funds to the Palestinian Authority," he said in an emailed statement Tuesday. "I oppose them unilaterally seeking statehood, the deal should be bilateral, but cutting them off would lead to more conflict not less."
Members of the House Committee on Foreign Affairs, meanwhile, worry increasingly about corruption within the Palestinian government, as a committee oversight hearing last week about the Palestinian Authority's "chronic kleptocracy" demonstrated.
"As a major political donor to the Palestinians, we need to be extremely concerned that our aid will be construed as support for a corrupt regime," House Foreign Relations Committee senior member Gary Ackerman (D-NY) said during the hearing. "If they unintentionally wind up enriching loathsome regime figures ... then we have a hard choice as our support for the people is outweighed by unintended, undesirable consequences of that flow."
Areikat dismissed the hearing as a politically motivated smear tactic.
"By holding these hearings all the time, the House Foreign Relations Committee is ignoring an important fundamental principle in the U.S. system, which is giving the other party the chance to present its case," he told The Cable. "They have been holding all these hearings on the Palestinian Authority while the Palestinian Authority and its representatives are absent, so it's only a charade. It's a politically motivated campaign that has nothing to do with transparency and accountability."
House Rules Committee chairman David Dreier (R-CA) announced last week during a visit to Tunis that he intends to head an initiative to propose a free trade agreement between the United States and Tunisia, which experienced a popular uprising in 2010 and held democratic elections in October.
"One of the most effective ways the United States can offer support to the Tunisian people as they work to solidify democratic gains is by expanding trade and commercial ties," Dreier, who is also the founding chairman of the House Democracy Partnership, said in an emailed statement yesterday. "Spurring economic growth through increased trade would ... help to create the resources necessary for sustainable democratic development and prosperity in Tunisia."
According to congressional sources, Dreier first discussed the topic with Tunisian Prime Minister Hamadi Jebali at the Davos meeting of the World Economic Forum in March, just months after Dreier introduced a bipartisan resolution calling for a free trade agreement with Egypt and the Office of the U.S. Trade Representative relaunched Trade and Investment Framework Agreement (TIFA) talks with Tunisia. Even though Dreier's proposal has yet to gain a substantial congressional base, he is partnering with House Committee on Foreign Affairs senior member Rep. Gregory Meeks (D-NY) and Ways and Means Committee member Rep. Erik Paulsen (R-MN).
As Brookings Institute Saban Center on the Middle East director Tamara Wittes noted, there's a growing feeling of congressional support for Tunisia.
"I think there's a tremendous amount of support on the Hill for Tunisia," she told The Cable. "I think members of Congress understand how important it is to have a successful model in North Africa for the other countries struggling with democratic reform."
U.S. Chamber of Commerce vice president of Middle East and North Africa affairs Lionel Johnson agrees that Tunisia has a lot of potential.
"The Tunisian government is the one in the region that shows the most promise," he told The Cable. "We'd like to see talks begin in early 2013."
Washington has already pledged to help Tunisia with short-term economic problems like debt and unemployment. In March, it was announced that the United States would transfer $100 million to Tunisia, which faces a $25 billion debt, and in June the parliament in Tunis voted in favor of a bill allowing for a $400-450 million sovereign bond issue "with up to 100 percent of the principal and interest guaranteed by the U.S. government," enabling Tunisia to "borrow at almost risk-free rates." The State Department's Middle East Transitions office is pursuing a series of "smaller but important steps."
"There are investment regulations, border controls, and other regulatory changes that could help facilitate trade between the U.S. and Tunisia," Middle East Transitions program director William Taylor told The Cable. "What we're hoping is that by taking some of these steps earlier on, they might get some of these trade benefits sooner than if they were wrapped into one large negotiation for a free trade agreement."
Ultimately, though, a free trade agreement stands to make a significant economic impact on Tunisia, which counted the United States among its top five trading partners in 2010.
"There's a lot that the U.S. is already doing with economic and technical assistance to support the growth of the private sector in Tunisia, so an FTA would complement that because it would be mutually beneficial," Wittes explained. "Over the long term, we know that Tunisian economic health is going to come through a robust private sector that will help to cement a democratic transition. This is not an FTA that's going to have a massive impact on the U.S. economy. It will, however, have an important impact on the Tunisian side."
Senate Foreign Relations Committee ranking Republican Richard Lugar (R-IN) says he thinks Tunisia will become a strong economic partner for the U.S.
"Most successful middle-income countries want deeper bilateral trade relationships," he said at an event on Wednesday. "Countries that undergo successful transitions often ... become our best allies and trading partners."
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The Obama administration quietly announced this week that it is scrapping the office of the Global Health Initiative and abandoning plans to move the whole project over to USAID, creating anger and frustration in the non-government organization community.
Following what administration sources described as a knock-down drag-out interagency fight between USAID and CDC over whether the Global Health Initiative, a huge $63 billion project to help the world's poorest announced by President Barack Obama in 2009, would actually be moved to USAID as promised in the State Department's Quadrennial Diplomacy and Development Review (QDDR), the administration has decided to forgo what the QDDR directed and stop trying to consolidate the leadership of the multi-billion dollar program at USAID.
"As a result of our analysis and conclusions, we have made a collective recommendation to close the QDDR benchmark process and shift our focus from leadership within the U.S. Government to global leadership by the U.S. Government. This recommendation has been accepted," read a July 3 blog post by USAID Administrator Rajiv Shah, Ambassador Eric Goosby, Director Thomas Frieden, and Executive Director Lois Quam.
"At the State Department, the GHI Office (S/GHI) will close and the Office of Global Health Diplomacy (S/GHD) will be stood up. Unlike S/GHI's focus on interagency coordination, the S/GHD office's mandate will be to champion the priorities and policies of GHI in the diplomatic arena.... Global Health Initiative will continue as the priority global health initiative of the U.S. Government.... GHI country teams and GHI planning leads will continue to work to implement GHI strategies under the leadership of the U.S. Ambassador."
The Modernizing Foreign Assistance Network (MFAN), an umbrella group representing development organizations co-chaired by David Beckmann, George Ingram and Jim Kolbe, today issued a harsh criticism of the administration's decision.
"The Obama Administration unfortunately yielded to inertia and interagency turf battles in deciding not to move leadership of the Global Health Initiative (GHI), America's largest development program, to the United States Agency for International Development (USAID), our premier development agency," MFAN wrote. "We are concerned that our partners on the ground will continue to be confused about global health leadership and coordination, which will hamper efforts to effectively transition ownership of development programs to recipient countries.... Viewed through these lenses, the Administration may have undermined its own landmark efforts to increase development effectiveness and accountability."
Development experts Amanda Glassman and Rachel Silverman wrote about the backstory in a blog post on the website of the Center for Global Development. They said the administration has dramatically scaled back its ambitions for GHI by deciding not to consolidate its leadership at USAID.
"The news is deeply disappointing and frustrating on a number of levels. The announcement reflects a breakdown of the inter-agency process. It demonstrates a continued lack of political will to address the hard questions that hamper integration, particularly separate earmarked funding streams and parallel, competing institutions within the U.S. government that had different strategies and relationships with recipient country governments," they wrote. "The bottom line: GHI 1.0 failed on the hard questions, and GHI 2.0 isn't even trying."
The Pakistani military is entitled to the $1.1 billion of U.S. taxpayer money that the Pentagon is asking Congress to approve giving them, according to top Senators from both parties.
The Obama administration has told Pakistan it will release $1.1 billion of Coalition Support Funds (CSF) to the Pakistan military now that Islamabad has reopened the Ground Lines of Communication (GLOC) through which the U.S. supplies troops in Afghanistan. The funds are reimbursement money that Pakistan has already spent in the joint effort to fight al Qaeda and the Taliban that were already authorized by Congress.The U.S. government has been holding up the money over the past six months while the supply lines were closed.
Pakistan had closed those supply lines after NATO forces killed 24 Pakistani soldiers near the Afghan border in November, but opened them this week after Secretary of State Hillary Clinton finally, publically, said "we're sorry" for the mistakes that led to those killings. The Senate Armed Services Committee (SASC) could hold up the funds, but its leaders say they don't plan to do so.
"I would approve it," SASC Chairman Carl Levin (D-MI) told The Cable on Tuesday in a short interview. "They've presumably earned it by the money they've laid out in terms of their anti-terrorist activities and protecting our flow of oil."
There are costs incurred by Pakistan in facilitating the movement of oil and training and equipping their own forces engaged in the fight againstinsurgents, Levin said.
"This is not supposed to be a gift, this is supposed to be a reimbursement," he explained. "That's the theory."
But Levin is still not satisfied with Pakistan's level of cooperation when it comes to combatting terrorist safe havens on their soil and protecting their side of the Afghanistan border.
"I think they've done an adequate job in some areas, a spotty job, a job that is not consistent. I wouldn't give them a grade A, I would give them a grade C on the work that they've undertaken," he said. "But the deal was therewould be reimbursement for their costs and that's what's been held up."
Sen. Lindsey Graham (R-SC), a senior member of the Senate Armed Services Committee and ranking Republican on the Senate Appropriations Subcommittee on State, Foreign Operations and Related Programs, told The Cable today that he also believes the CSF money should go through.
"The money's been stuck in a pipeline and the reason it hasn't flowed faster is that we can't be sure it's going to be spent wisely. If our commanders believe releasing the funds helps the war effort, I don't want to second guess them," Graham said in a short interview.
He said the biggest beneficiary of the opening of the supply lines were U.S. and international troops on the ground and he said the money is one of the only bargaining chips Washington has left when dealing with Islamabad.
"Pakistan on a good day is very hard. They are an unreliable ally. You can't trust them, you can't abandon them," Graham said. "But if you cut the money off, what leverage do you have? There may come a day when we do that, but not yet."
The Pentagon said they have been working with Congressional leaders and they are hopeful the funds will be released. "We look forward to working closely with Congress to process these claims," Capt. John Kirby, a Pentagon spokesman, said last week.
There's only one hurdle left for the funds to cross over. Sen. Rand Paul (R-KY) plans to attempt to force a vote to cut off all aid to Pakistan later this month and will try to include the CSF funding in that effort.
The Obama administration is planning to release more than $1 billion of held-up funds to the Pakistani government this month, following Pakistan's opening of the supply lines to Afghanistan. But Congress can thwart that plan and at least one senator is going to try.
Pentagon spokesman Capt. John Kirby confirmed to The Cable on Friday that the Pentagon is planning to give Pakistan $1.1 billion in Coalition Support Funds (CSF), reimbursement money that Pakistan has already spent in the joint effort to fight al Qaeda and the Taliban. The U.S. government has been holding up the money over the past six months while the supply lines were closed. Pakistan closed those supply lines after NATO forces killed 24 Pakistani soldiers near the Afghan border in November, but opened them up again this week after Secretary of State Hillary Clinton finally, publically, said "we're sorry" for the mistakes that led to those killings.
Clinton didn't mention the funds when she announced the deal to re-open the supply lines. Kirby didn't say the money was a quid pro quo deal in exchange for opening up the Ground Lines of Communication (GLOC), as other officials and experts allege, but he did acknowledge that the two issues are linked.
"Now that the GLOCs are open, we intend to submit the approximately $1.1 billion in approved receipts under the Coalition Support Fund for costs associated with past Pakistani counter-terrorism operations," Kirby told The Cable. "Now that the GLOCs are open, we are prepared to move forward with these claims."
Kirby said that congressional leadership was kept in the loop during the discussions with Pakistan about re-opening the supply lines. "We look forward to working closely with Congress to process these claims," he said.
Multiple Senate offices told The Cable that the notification for releasing the $1.1 billion to the Pakistan military has not yet reached Capitol Hill but is expected in the coming days. After Congress receives the notification, lawmakers have 15 days to object to the release or the funds will go through.
Congressional anger at Pakistan is at an all-time high, and not just because of the closing of the supply lines, which have cost U.S. taxpayers about $100 million extra per month, according to Kirby. Lawmakers are upset that the Pakistani military can't or won't eliminate the safe havens in Pakistan where insurgents live and from where they launch cross-border attacks on U.S. forces in Afghanistan.
Lawmakers are also upset that the Pakistani courts have condemned Shakil Afridi, the doctor who worked with the CIA to help positively identify Osama bin Laden. Afridi was sentenced last month to 33 years in jail for treason. Last week, before the deal over the supply lines was announced, Sen. Rand Paul (R-KY) told The Cable he would force a vote on an amendment to halt all aid to Pakistan this month, due to the Afridi case.
"My goal is that the guy who helped us get bin Laden will not be in prison for the rest of his life," Paul said in an interview.
Afridi has an appeals hearing on July 19, so Paul is planning to wait and see if the Pakistani courts reverse themselves before he uses a rare procedural move to force a vote to cut off all aid to Pakistan.
"I've decided to try to have the vote on July 20 to give them one more chance to review his case," Paul said.
Senate leadership is dead set against letting Paul have a vote on his amendment, out of concern that senators won't want to publically stand up in defense of sending more American taxpayer money to our greatest frenemy. But Paul said he plans to use Senate Rule 14 to force a vote and his office has collected 33 signatures from other senators on a petition to push for that vote. It's not clear if this legislative tactic will work, but Paul is confident.
"I can go around the leadership on that. I don't think they can stop me from having a vote. There will be a vote on Pakistan," Paul said. "It doesn't happen very often, but I have the signatures and I can get a vote."
Paul met with the State Department and Pakistani Ambassador Sherry Rehman last week. After the GLOC deal was struck this week, The Cable asked Paul spokeswoman Moira Bagley if the Kentucky senator would also try to stop the release of the CSF money. She said he would.
"Sen. Paul is dedicated to seeing Dr. Afridi -- an integral figure in finding Osama bin Laden -- released from prison in Pakistan. He is prepared to use all legislative tools possible to obtain this goal, including blocking U.S. taxpayer-funded aid to the government of Pakistan until they cooperate with this request," she said. "Should the opportunity to block these ... funds come before the Senate, Sen. Paul will urge his colleagues to do so."
The funding is technically under the jurisdiction of the House and Senate Armed Services Committees, but the leaders of those committees were out of town this week and their offices declined to comment on the CSF funding because they have not yet received the notification.
Clinton did a great job negotiating the re-opening of supply routes from
#Pakistan to #Afghanistan," Senate Armed Services Committee
ranking Republican John McCain (R-AZ) tweeted on July 4, but it's not clear if he will support the
release of the $1.1 billion CSF. McCain is currently traveling in Afghanistan
and the Middle East, he could not be reached for comment.
If Congress does let the funds go through, that could be a key confidence-building measure between the two countries, which are trying to dig themselves out of the worst period in the bilateral relationship in over a decade.
If Congress halts the funds, the very short uptick in relations will be scuttled and the two nations will return to their all-too-familiar pattern of retaliation and recriminations. But there's little chance that Pakistan will close the supply lines, now that they are open again.
"Several trucks have gone through, and they will continue," Kirby told Pentagon reporters at a Thursday briefing. "I mean, this will continue now that the gates are open."
Mark Wilson/Getty Images
The House Foreign Affairs Committee will start work on a State Department authorization bill it hopes can be the first international affairs policy bill to pass Congress in several years.
The Cable has obtained the draft bill, which will be the basis for a debate and amendments Wednesday in a markup session to be led by HFAC Chairwoman Ileana Ros-Lehtinen (R-FL). In a note sent to committee members, the majority staff emphasized that the 76-page bill was meant to be one that both parties could support and pass without much controversy.
"We appreciate all of the input and forbearance that has gone into the creation of this limited, bipartisan collection of basic authorities on which we can reach consensus, in the hope of being able to authorize the State Department for the first time in a decade," the note read.
Whether or not the bill will remain bipartisan and noncontroversial after the markup remains to be seen. Last year, the House committee marked up a State Department authorization bill and added provisions through amendments that would have done things like defunded American contributions to the Organization of American States and restricted foreign aid to a host of countries -- nonstarters for the Obama administration. That bill never made it over to the Senate.
Senate Foreign Relations Committee chairman John Kerry (D-MA) marked up a Senate version of the State Department authorization bill in 2010 but that bill was never acted on by the full Senate. The authorization bills are supposed to set policies before the appropriations bills are enacted to distribute funds. The last time a State Department authorization bill was passed by both chambers and signed into law was 2003.
Secretary of State Hillary Clinton, USAID Administrator Rajiv Shah, Deputy National Security Advisor Denis McDonough, actor Ben Affleck, and Pakistani Ambassador Sherry Rehman are all joining together this week for a major conference devoted to preventing childhood death.
The U.S., Ethiopian, and Indian governments are the hosts of the two-day Call to Action for Child Survival, being held Thursday and Friday at Washington's Georgetown University. Other notable speakers at the conference include Sen. Johnny Isaakson (R-GA), Sen. Mary Landrieu (D-LA), HHS Secretary Kathleen Sebelius, UNICEF Executive Director Anthony Lake, the first lady of Mozambique Maria Da Luz Guebuza, Joseph Potasnik, executive vice president of the New York Board of Rabbis, and many others.
More than 700 leaders from the private sector, government, and civil society will be there, including representation from more than 80 countries, with over 50 countries represented at the ministerial level.
"Every child deserves to have a fifth birthday and even this year more than seven and a half million children will die before their fifth birthday," Shah told The Cable in an interview.
"We've brought together experts around the world to create a new partnership that will be launching to really help eliminate preventable child death," he said. "We think that goal is achievable and we're having this call to action on Thursday."
The event will follow another large development conference going on in Washington this week. Wednesday was the last of three days in the first annual Frontiers in Development conference, also hosted by USAID at Georgetown.
Sen. Richard Lugar (R-IN) spoke at the Monday-morning kickoff session of the conference and made a detailed argument in favor of U.S. foreign aid budgets despite the nation's fiscal woes.
"Amid these financial threats and budgetary realities, it is inevitable that some will question the role of the United States in global development," he said. "But I would assert this morning that development assistance, when properly administered, remains a bargain for U.S. national security and for our own economic and moral standing in the world."
The conference also featured speeches by Joyce Banda, President of Malawi, Ellen Johnson Sirleaf, President of Liberia, Atifete Jahjaga, President of Kosovo, NATO Supreme Allied Commander Europe Adm. James Stavridis, NSC Senior Director Gayle Smith, former Irish President Mary Robinson, Sen. Ben Cardin (D-MD), Deputy Secretary of State Tom Nides, former presidential daughter Barbara P. Bush, and actress Mandy Moore.
"We think development is going through this amazing transformation and it's a transformation based on absolute demand for results when we spend taxpayer dollars and when we work abroad," Shah told The Cable. "This conference is one step in that direction. It's intended to bring thought leaders from around the world together."
No taxpayer dollars are being used for the event, Shah said. It's funded privately by groups such as the Gates Foundation and the Rockefeller Foundation.
"They recognize we are at a pivotal moment where we can either elevate development and make it a serious part of how America projects values abroad in an effort to build a safer and more prosperous world, or we can turn the other way and cede our historic leadership role in this space to other emerging economies in Asia and elsewhere," he said. "It's our choice."
USAID's suspension of funding for the Pakistani version of Sesame Street came after an anonymous tip to an anti-fraud hotline and shows that the United States is on top of fraud and abuse in its foreign assistance programs, USAID Administrator Rajiv Shah told The Cable.
Earlier this week, USAID closed the spigot on the $20 million that was supposed to be allocated to the television program, called Sim Sim Hamara, or "Our Sim Sim," after $6.7 million had been disbursed. The program, which aired for the first time last December, was being produced by the Sesame Workshop and the Rafi Peer Puppet Workshop, based in Lahore. Faizaan Peerzada, a top executive of Rafi Peer, has denied various allegations that he used the money to pay off old debts, give subcontracts to relatives, and build a pool at his house.
Shah, who has made aid effectiveness and accountability a cornerstone of his agenda at USAID, said in a short interview that USAID knows the risks of working with partners in troubled countries, but it is important to try anyway, so long as there are checks on possible fraud and abuse.
"When we're working in difficult environments, there are going to be risks involved. The reason we do the work is because it's part of a joint national security priority to help address the causes of conflict and instability to begin with," he said. "The case in Pakistan was a case where we had set up an anti-fraud hotline through Transparency International. We got a tip and we acted aggressively on that tip to suspend the program and conduct a further investigation, which is going on now."
For Shah, the incident is an example of a success story in foreign aid transparency, because the failsafe measure worked and the fraud investigation can now proceed to its factual conclusion, whatever that turns out to be.
"It just goes to show that we can be responsive and we can be smarter about how we try to use modern technology -- in this case, the anti-fraud hotline -- to help fight against and prevent corruption in the implementation of these efforts," he said. "There are obvious risks taken in conflict-affected environments, so we are very vigilant in fighting against corruption and those types of risks, which is why we took this very quick and very significant action, which of course has been very controversial but which we stand behind."
The show featured Elmo and a group of new Pakistani characters including, as ABC reported, "Munna, a 5-year old boy who played the table drums, Baily, a donkey who loved to sing, and Haseen O Jameel, a crocodile living in a well."
A USAID spokesman said the project was created to promote literacy and numeracy, and complements formal education by reaching kids through TV, especially in remote, rural communities where many have limited or no access to traditional education.
"The project also contributes directly to the goal of promoting stability and security by promoting tolerance among Pakistanis and respect for girls," the spokesman said. "Rafi Peer Theater Workshop is a Pakistani organization which is separate and distinct from the U.S. organization Sesame Workshop with which USAID has a number of ongoing projects around the world. Sesame Workshop has not been implicated in these allegations."
The suspension comes in the midst of a substantial consolidation of USAID projects in Pakistan, an effort Shah talked about during his trip there in April.
In a rare moment of bipartisan unity in the Senate, Democrats and Republicans joined together to admonish Pakistan for its treatment of the doctor who helped the United States find Osama bin Laden.
At a Senate Appropriations Committee markup this morning, senior senators from both sides of the aisle took turns accusing Pakistan of supporting terrorism, undermining the war in Afghanistan, extorting the U.S. taxpayer, and punishing Shakil Afridi, the doctor who worked with the CIA to find Bin Laden and was sentenced this week to 33 years in jail for treason. One senior senator predicted the Pakistani government was about to fall.
Sens. Lindsey Graham (R-SC) and Patrick Leahy (D-VT), the heads of the State and Foreign Operations subcommittee, co-sponsored an amendment to the fiscal 2013 foreign affairs funding bill that would withhold $33 million in foreign military aid to Pakistan -- one year for each year of Afridi's sentence. That amendment came on top of new restrictions in the bill that would withhold all counterinsurgency aid to Pakistan if Islamabad doesn't reopen trucking routes for supplies for U.S. troops in Afghanistan.
But senators' frustration with Pakistan was not limited to recent events; they piled on with criticism of Pakistan's government, military, and intelligence services' actions throughout the war in Afghanistan. All agreed that the U.S.-Pakistan relationship as currently arranged was dysfunctional and undermining U.S. national security interests.
Graham started by pointing out that the Senate is proposing reductions in next year's emergency funding for Pakistan by 58 percent from the president's request.
"When it comes to Pakistan, every member of this committee is challenged to go home and answer the question, ‘Why are we helping Pakistan?'" he said. "We can't trust Pakistan, but we can't abandon them."
"If we don't get those truck routes open so we can serve our troops in Afghanistan, we're going to stop the funding ... I do not expect Americans to sit on the sideline and watch the negotiations turn into extortion," said Graham.
Senate Intelligence Committee Chairwoman Dianne Feinstein (D-CA) launched into a widespread criticism of Pakistan's Inter-Services Intelligence directorate (ISI), the country's premier spy agency.
"I have long believed that Pakistan, especially the ISI, walks both sides of the street when it comes to terror," she said, noting that most leaders of the Taliban and the Haqqani network are assessed to be living in Pakistan. She also spoke about the Afridi case.
"He was not and is not a spy for our country. This was not a crime against Pakistan. It was an effort and locate and help bring to justice the world's No. 1 terrorist," she said. "This conviction says to be that al Qaeda is viewed by the court to be Pakistan ... I don't know which side of the war Pakistan is on."
Senate Minority Whip Richard Durbin (D-IL) went next and said Feinstein's sentiments about Afridi were shared by many in the Senate. He was followed by Leahy, who said he was "outraged" about the Afridi case and said Pakistan public statements criticizing terrorism don't match its actions.
"It is Alice in Wonderland, at best, but it is outrageous in itself. If this is cooperation, I would hate like heck to see opposition," Leahy said.
"Pakistan is a schizophrenic at best ally," Graham said as he introduced the amendment to cut funding over the Afridi situation. "They are helping the Haqqani network ... which is basically a mob trying to take over parts of Afghanistan. And the ISI constantly provides assistance in Quetta on the Pakistani side of the border."
"The situation with the doctor is a classic example of not understanding the world the way it is," Graham said. "We need Pakistan, but we don't need a Pakistan that cannot see the justice in bringing bin Laden to an end."
Graham then took a shot at Pakistan's civilian government, which is often at odds with the military and the intelligence agencies.
"This government is about to fall. They are not serving their own people," Graham said.
Feinstein did chime in at the end of the debate with praise for Pakistan's new ambassador to Washington, Sherry Rehman.
"To me this is a very sad day. I have met the new Pakistani ambassador," Feinstein said. "She is a brilliant woman, she speaks fluent English, she has had a distinguished career.... This is just very hard to reconcile."
The amendment passed unanimously 30-0.
The biggest single new initiative in the State Department's $51.6 billion budget proposal for next year was a Middle East Incentive Fund -- $770 million in mostly new money to help State respond to the Arab Spring by supporting emerging democracies and their civil societies. But the House of Representatives declined to fund it in their version of the appropriations bill.
The House Appropriations Subcommittee for State and Foreign Ops didn't give any money to fund the initiative in their fiscal 2013 appropriations mark, released last month. The leaders of that subcommittee claim that State failed to give them enough detail about the program to justify the new outlay of funds. Now, the State Department is depending on its allies in the Senate to save the program when the Senate Appropriations Committee marks up its bill next week. The episode is an example of the disconnect between State and Congress over how to respond to the Arab Spring as well as the difficulty of securing new money for diplomatic initiatives in this tight budget environment.
"This is something that Secretary Clinton has really -- and with the President -- has focused principally on," Deputy Secretary of State Tom Nides said in February when announcing the initiative. "The notion is we're in a new world. The Arab Spring has come; we need to make sure we have the tools and the flexibility in which to fund these initiatives. I cannot tell you today where that money will be spent because we'll be, obviously, in consultation with the Hill. We'll be coming up with initiatives that we'll then be discussing with the Hill."
"But this is something we coordinated and talked a lot about with our friends on the Hill, the idea is to have some flexibility to support everything from Tunisia, to support areas like potentially in Egypt and in areas where things are changing every day in Syria, things where changing, the world is evolving as we see it, and we felt it was important to have a pool of money," he said.
At the time, budget experts warned that it would be difficult for the State Department to get Congress to spring for the program because State didn't seem to have a lot of detail about what the money would be used for.
"That will be controversial because there's no content. It's a contingency fund and Congress doesn't like to give State contingency funds," said former Office of Management and Budget National Security Director Gordon Adams at the time.
State did brief all the relevant committees on the new fund and provided as much detail and context as they could, but it wasn't enough for the House subcommittee leaders, Reps. Kay Granger (R-TX) and Nita Lowey (D-NY).
"The administration could not justify the broad authority requested to override existing laws. However, the House bill does provide State some flexible funding to be responsive, within the existing account structure, while increasing congressional oversight on key countries," Granger's spokesman Matt Leffingwell told The Cable.
The "existing account structure" he referred to is the economic support funds that are given each year on a country-by-country basis. Congress prefers granting State country-specific aid because it's easier to track and oversee.
"Congresswoman Lowey supports U.S. engagement in the region and believes we must have the flexibility to respond to rapid changes and developments. Existing accounts within the bill provide that important flexibility," Lowey's spokesman Matt Dennis told The Cable.
Outside experts working closely on the issue said that the State Department didn't properly explain the new fund or its benefits to Congress and didn't have specific enough proposals to give lawmakers assurance the money would be spent wisely.
"This incentive fund is an important new initiative, but unfortunately it seems the administration has done a pretty poor job of pitching it to the hill. There's a lot of confusion in Congress about what this fund is for and why it's important," said Stephen McInerney, executive director of the Project on Middle East Democracy.
"This fund should be a signature initiative of the administration to respond to the historic events in the region, and these funds could be essential to the administration's ability to respond to events that haven't yet unfolded in places like Syria, where there is no existing U.S. assistance package in the budget," said McInerney.
Using economic support funds is not a great option because those funds are already devoted to specific causes and diverting them from other places would hurt other priorities, McInerney argued.
"The administration won't be able to use that flexibility without significant cuts to existing programs. Without some support from Congress, it's really tough to get it off the ground," he said.
Tamara Wittes, head of the Brookings Institute's Saban Center on the Middle East, pointed out that within the $770 million State requested for the new fund, it included a $65 million annual request for an existing program called the Middle East Partnership Initiative (MEPI), which is how State has been funding civil society development in the region. So now, MEPI's funding is also at risk.
"Congress may not realize that MEPI funding was embedded in this proposal, but they need to be aware of the impact of their decision on America's ability to partner with citizens in the region who are working for positive change," she said. Wittes was head of the MEPI office and deputy director of State's new Middle East Transitions Office before she left government earlier this year.
The new Middle East Incentive Fund is State's way of trying to shift America's aid approach in the region from the military-dominated focus of the recent decades to an approach focused on the promotion of civil society and political reform, said Wittes.
"We have to look at the overall ratio of our assistance and how that is seen by the people of the region. In order to seize the opportunity that the Arab Spring presents, we need to shift the logic of our relationships to one that emphasizes projects with people," she said.
The fight to save the fund now goes to the Senate, where the Senate Appropriations Committee is set to mark up its State and Foreign Ops bill as early as next week. David Carle, the spokesman for State and Foreign Ops subcommittee chairman Sen. Patrick Leahy (D-VT), told The Cable, "Sen. Leahy does intend to include some amount for the fund, for the reasons the administration requested it -- to provide flexibility to respond to changing events in the ME and NA regions."
The Senate subcommittee hasn't decided how much of the request to support. Their version of the bill could be conferenced with the House version. More likely, Congress will not complete any appropriations bills this year and the two versions will simply inform a temporary funding measure crafted by congressional leadership in late September.
The new fund does have one powerful staunch supporter in Congress, Senate Foreign Relations Committee chairman John Kerry (D-MA).
"This is something that's been percolating a long time on the Hill and in the administration and it's really a no-brainer," Kerry told The Cable in a statement. "We're witnessing a period of historic change in the Middle East, and it's impossible to predict what will happen next month, let alone next year, which is why the State Department should have the flexibility to deal with unforeseen contingencies. Positive incentives for economic and democratic reforms also make sense. American assistance in itself may not convince governments that are resisting reform to change, but in places that have already begun to chart a new course, like Tunisia, Egypt, and Libya, it can help empower moderates and reformers."
The State Department declined to comment.
UPDATE: A reader points out that the House Appropriations State and Foreign Ops subcommittee's report on the bill does direct $70 million to MEPI, separate from the Middle East Incentive Fund.
Syrian government forces continue to attack opposition forces, civilians, and aid volunteers, preventing the international community from getting emergency aid to the Syrian people, USAID has detailed in a series of internal reports obtained by The Cable.
In its latest "humanitarian update," written at the end of April, USAID reported in detail the extensive attacks perpetrated by Syrian Arab Republic Government (SARG) troops, despite an ongoing U.N. monitoring mission and in direct violation of the "cease-fire" there. The USAID report, marked "sensitive but unclassified," sourced its findings to U.N. representatives in Syria as well as representatives of the International Committee for the Red Cross (ICRC), the Syrian Arab Red Crescent (SARC), and other aid groups on the ground.
"U.N.-Arab League Special Envoy to Syria Kofi Annan expressed concerns regarding reports of SARG reprisal attacks in areas where Syrian civilians met with U.N. observers, including in Hamah and Damascus governorates," the report stated. "The observers report that SARG forces have not withdrawn heavy weapons from urban centers -- a condition of the U.N. and Arab League supported ceasefire and peace plan that went into effect on April 12."
Although the U.N. Security Council has authorized the deployment of 300 monitors, the report could only confirm that "at least 11" U.N. monitors had arrived in Syria as of April 24. (Additional monitors have reportedly arrived since then.)
Meanwhile, USAID reported that government forces attacked an SARC vehicle April 24 that was evacuating wounded civilians in Douma, a suburb of Damascus, killing one aid volunteer and injuring three. Twenty-six aid workers were trapped in an SARC building following the attack and the SARC had to negotiate a temporary ceasefire between opposition and government forces to get them out, USAID reported.
Following a request from SARC, USAID contractors have suspended the deployment of mobile medical units that were providing health-care services in and around Damascus, the report said.
"In addition to emergency medical needs resulting from ongoing violence, a USAID/OFDA partner report increasing constraints on the availability of medications for chronic diseases, which are prohibitively expensive for Syrians without financial assistance," the report stated. "In addition, the U.N. World Health Organization representatives have expressed concern about the health of displaced Syrians in Jordan."
A USAID contractor is working to train Syrian doctors in Jordan so they can return to Syria and provide life saving medical care there, and a USAID contractor has procured 10,000 kg of medical supplies for use in Syria and is trying to get those supplies into the country, according to the report.
In an April 26 press briefing, USAD Deputy Assistant Administrator for Democracy, Conflict, and Humanitarian Assistance Christa Capozzola criticized the Syrian regime for not allowing emergency aid supplies to reach the Syrian people and called for more help.
"While some aid is reaching people in need through the Red Crescent, other U.N. agencies, and other international organizations, current humanitarian access restrictions remain a significant challenge to the aid effort," she said. "After months of working under these conditions, the aid organizations working in Syria are extremely stretched. To continue alleviating suffering and saving lives, they need more support and capacity from the international community.
The U.S. government has spent $39.4 million on assistance for Syria in fiscal 2012, the report stated. The report noted that only $33 million of this assistance has been publicly reported before now.
Overall, the USAID report concluded that there had been at least 9,000 civilian deaths in Syria as of March 27, according to U.N. figures, although the current number is likely higher. There are between 300,000 and 500,000 internally displaced Syrians, according to the report, 610,000 estimated refuges inside Syria, and approximately 66,000 Syrian refuges who have fled to Turkey, Lebanon, Jordan, and Iraq.
The USAID report was marked sensitive but unclassified (SBU).
U.S. Agency for International Development
Secretary of State Hillary Clinton has decided to use a national security waiver to allow over $1.5 billion of U.S. aid to Egypt, bypassing Congressional restrictions even while the Egyptian government's assault on NGOs in Cairo continues.
The State Department hadn't planned to announce the waiver decision today. "We're still expecting a decision this week, but she hasn't made it yet," State Department spokeswoman Victoria Nuland said at Thursday's press briefing. But apparently Clinton had decided, because Senate Appropriations State and Foreign Ops Subcommittee Chairman Patrick Leahy (D-VT), the author of the restrictions, got a call from the State Department today notifying him of the waiver. In a statement Thursday afternoon, he announced the waiver and criticized Clinton's choice.
"I am disappointed by this decision. I know Secretary Clinton wants the democratic transition in Egypt to succeed, but by waiving the conditions we send a contradictory message," Leahy said. "The Egyptian military should be defending fundamental freedoms and the rule of law, not harassing and arresting those who are working for democracy. They should end trials of civilians in military courts and fully repeal the Emergency Law, and our policy should not equivocate on these key reforms."
Leahy's office has been urging Clinton not to use the waiver authority that Leahy himself added to the most recent appropriations bill. Now that the waiver has been exercised, Leahy is arguing that, just because the restrictions on the aid have been removed, that doesn't mean the U.S. government necessarily has to deliver the aid -- at least not all of it up front.
"Now that Secretary Clinton has decided to use the law's waiver authority, she should use the flexibility the law provides and release no more taxpayer funds than is demonstrably necessary, withholding the rest in the Treasury pending further progress in the transition to democracy," said Leahy.
We were told by multiple Congressional sources that the State Department is considering delaying part of the $1.3 billion of military aid and most of the $250 million in economic aid, at least for a while. The Pentagon has been urging Clinton to release some of the military aid because existing contracts with U.S. defense firms were dependent on the funds, multiple Congressional aides said.
Leahy's House counterpart, House Appropriations State and Foreign Ops Subcommittee Chairwoman Kay Granger (R-TX), also came out against Clinton's decision to waive the restrictions today and said that she had been told it was in fact a partial waiver.
"I am disappointed by the timing of the Secretary's decision to issue a partial waiver of restrictions on FMF funds for Egypt while the Egyptian government's transition is ongoing," Granger said in a statement to The Cable. "The State Department needs to make the case that waiving the conditions is in the national security interest of the United States. I expect the Secretary to follow the law and consult the Appropriations Committee before any funds are transferred."
Critics of providing further military aid to the Cairo government have raised concerns over the actions of the Supreme Council of the Armed Forces (SCAF), which allegedly played a role in the December raids on several NGOs in Cairo, including three funded by the United States: the International Republican Institute, the National Democratic Institute, and Freedom House.
A number of Americans who worked for NGOs in Egypt were temporarily banned from leaving the country and charged with crimes, but they were eventually allowed to depart earlier this month. Prosecutions against both the foreign workers and the local staffs of the NGOs continue.
The non-military aid is under particular scrutiny because it would be given largely to the Egyptian Ministry of International Cooperation, which is run by Fayza Abul Naga, the official who is suspected to have played a lead role in the raids and the prosecutions.
"The decision to waive the conditions, partially or in full, on military aid sends the wrong message to the Egyptian government -- that U.S. taxpayers will subsidize the Egyptian military while it continues to oversee the crackdown on civil society and to commit human rights abuses," said David Kramer, president of Freedom House. "A resumption of military aid at this point also sends the wrong message to the Egyptian people -- that we care only about American NGO workers, not about the aspirations of the Egyptian people to build democracy."
Stephen McInerney, executive director of the Project on Middle East Democracy, agreed with that assessment. The announcement of the waiver, he said, was "extremely disappointing, particularly as Egyptian and American organizations working to support Egypt's transition to democracy remain very much under threat."
The restrictions in the bill were conditioned on Clinton certifying that the Egyptian military is making progress on the transition to democracy, and that the Egyptian government is allowing freedom of expression and assembly. McInerney said the United States can still hold Egypt accountable for those promises.
"I very much hope, as Senator Leahy has expressed, that the administration will still elect to delay the disbursement of the majority of the fiscal year 2012 funds to Egypt's military until further progress in Egypt's transition to democratic civilian rule has been achieved," he said.
Not all senior lawmakers and officials connected with the issue are so eager to cut off U.S. funding to the Egyptian government. Senate Armed Services Committee ranking Republican John McCain (R-AZ), the chairman of IRI, has been deeply involved in the issue and traveled to Egypt in the midst of the crisis.
He told The Cable in an interview that the aid served as a valuable form of influence that the United States must use carefully.
"We've got to weigh all the aspects of this issue, it's very complicated and complex. We want to be on the same page as the administration," he said. "In general, I think its two steps forward and one step back in Egypt. But there's also the overall issue of the delicate political situation in Egypt today."
Senate Foreign Relations Middle East Subcommittee Chairman Bob Casey (D-PA) told The Cable that the issue wasn't black and white, and that there should be a way to provide some aid while still keeping the pressure on Egypt to continue reforms.
"We've got to have a measure of accountability. But I think the idea of cutting off aid doesn't make sense," Casey said. "We just have to figure out a better way to make the aid conditional based on those measures of accountability, and I think we can achieve that. I think, in this case, it's a mistake to take an either/or approach."
UPDATE: Read Nuland's full Friday statement on the waivers after the jump:
Mark Wilson/Getty Images
The Senate was all set to consider next year's funding bill for the State Department and foreign operations today, but ended up punting on the bill due to a dispute over Cuba policy and a failure to agree on procedure.
Congress has been rushing to complete work on all the appropriations bills for fiscal year 2012, which started almost two months ago, on Oct. 1. The Senate Democratic leadership's strategy was to move the bills in chunks of three at a time, smaller versions of omnibus bills affectionately known as "minibuses." The State Department and foreign ops appropriations bill was part of a minibus that was supposed to be debated beginning today on the Senate floor. But now that minibus has crashed, and Senate consideration of State Department funding has been postponed indefinitely.
Here's what happened. As The Cable reported on Monday, two senators were refusing to give unanimous consent to debate the State Department minibus, which also included the energy and water appropriations and financial services appropriations bills, because of provisions in the financial services bill that would loosen restrictions on U.S. banks doing business in Cuba.
Sens. Marco Rubio (R-FL) and Robert Menendez (D-NJ) don't want any restrictions loosened on doing business with Cuba. They both spoke on the floor today against the Cuba provisions, along with Sen. Bill Nelson (D-FL). But Sen. Jerry Moran (R-KS) spoke in favor of the Cuba provisions, which he had authored, because his state would benefit from the agricultural trade that loosening restrictions would bring.
So even though none of these senators objected to any aspect in the State Department budget, it was caught in the crossfire because it was tied up as part of the "minibus." With Rubio, Menendez, and Nelson objecting to bringing up the minibus with the Cuba language and Moran and Vitter objecting to bringing it up without the language, Senate Majority Leader Harry Reid (D-NV) realized he couldn't get unanimous consent for either version of the bill and pulled it from the floor.
Of course, Reid could just call for a cloture vote on whichever version of the bill he prefers, but that would require time Reid doesn't have. With time running out on the continuing resolution (CR) that is temporarily funding the government until Nov. 18, Reid can't afford to spend floor time on individual bills, amendments, or debate.
Requesting a cloture vote would also have opened up the bill to other amendments, unless there was an agreement to limit amendments, which there wasn't. That is actually how the Senate is supposed to work -- but hasn't, for quite a long time.
"This is a result of a dysfunctional appropriations process," one senior GOP Senate aide told The Cable late on Tuesday. "If you are considering appropriations bills in regular order there wouldn't be a problem, but regular order broke down long ago in the Senate and what we saw today was a direct result of utter disregard for regular order and sheer incompetence in running the Senate."
The Senate did actually use the regular procedure to pass the military construction and veteran appropriations bill earlier this year, so there is precedent.
What happens now? Well, the Senate definitely needs to pass a new short-term CR by Friday, which will probably be combined with a different minibus that has already passed the House, the Senate, and has emerged from a House-Senate conference. That minibus is made up of the Agriculture, Commerce-Justice-Science and Transportation-HUD appropriations bill.
After that, the Senate will move to the defense authorization bill, a policy bill that recommends -- but does not set -- funding levels. The process for that bill is also a mess, because the Senate Armed Services Committee (SASC) had to rewrite it at the last minute to cut about $20 billion to match the figure reached by Senate defense appropriators. SASC also had to change language on detainee policies to assuage the administration.
"I gave my word that we're going to do the defense authorization bill," Reid said on the floor late on Tuesday. "It hasn't been worked out to satisfaction of everyone, but there comes a time when we have to stop negotiating and move to the legislation, and we're going to do that following our finishing the next minibus we have."
But the failure to pass a bill tonight could mean that State Department funding will be put off for months. The debate over the defense authorization bill could take one or two full weeks of floor time, at which point the Senate will probably have to pass another CR to fund the government past the New Year. That CR could also result in a nasty fight. Also, Congress will have to grapple with the supercommittee's actions around that time, for instance working on legislation to undo the "trigger" that would cut $600 billion from defense if the supercommittee fails to strike a deal.
All of this means that there won't be floor time for things like the State Department funding bill until next January, at the earliest.
"If Senate Dem leaders do want to make defense authorization a priority, that's going to take up most of December, and then we have to deal with the supercommittee, sequestration, another CR ... and we're looking at the very serious possibility of another CR fight around Christmas. That is the most likely scenario," the GOP Senate aide said. "But then again it is the Senate, so everything could change again tomorrow."
The Senate is almost set to consider a three-bill spending package that includes all the funding for the State Department and foreign operations, but two senators are refusing to go along because of language related to Cuba.
The Senate was stalled on Monday evening as senators started debate on the energy and water appropriations bill, which Senate Democratic leaders want to combine with the State and foreign ops and financial services appropriations bills into a miniature omnibus measure that's affectionately known on the Hill as a "minibus." By packaging three bills together, the Senate hopes to be able to get more work done faster. However, two senators won't let that happen until their concerns about language allowing U.S. banks to do business in Cuba are addressed.
"There is concern among a group of senators on both sides of the aisle with longstanding concerns for human rights and democracy in Cuba with regard to the loosening of restrictions on Cuba in the financial services bill," a senior GOP Senate aide told The Cable Monday afternoon. "If that language was taken out, those senators would drop their objection to bringing up foreign ops for consideration."
Procedurally, Senate Majority Leader Harry Reid (D-NV) has already brought up the energy and water appropriations bill and wants to add the other two bills (state/foreign ops and financial services) as an amendment. But Reid needs unanimous consent in order to do that without a lengthy cloture process, and we're told by Senate sources that Sens. Robert Menendez (D-NJ) and Marco Rubio (R-FL) are objecting.
"Senator Rubio is objecting to a provision in the bill that would allow Cuba to become the only country on the State Department's State Sponsors of Terrorism list with a general exception for access to U.S.-based financial institutions," Rubio's spokesman Alex Conant told The Cable. "Under Cuban law, the Castro regime has a monopoly on all banking, commerce and trade, so this amendment would allow Cuba's totalitarian regime to directly open corresponding accounts in U.S.-based financial institutions, and vice versa."
The senators don't have any problem with the State and foreign ops section of the minibus, but Reid's attempt at adding both bills as one amendment has embroiled them in the dispute.
We're told by Senate sources that Reid plans to bring up the amendment containing both the State and foreign ops and financial services bills anyway and call for a unanimous consent vote, forcing any senators who object to show their cards. When the objections are made, Reid will be ready with a new amendment that doesn't contain the disputed Cuba provisions, which is likely to achieve unanimous consent.
After all this plays out, the real debate over the State and foreign ops appropriations bill can begin. When that happens, which will probably be late Monday evening or early Tuesday, senators will begin offering a host of amendments to the State and foreign ops bill.
Sen. Orin Hatch (R-UT) has introduced an amendment that would reinstate a ban on U.S. funding for foreign organizations that even discuss abortion. The amendment's language is a version of what has been known since 1984 as the Mexico City policy, named for the city where President Ronald Reagan first announced it. It's been a partisan ping-pong issue ever since: President Bill Clinton rescinded the policy in 1993, President George W. Bush reinstated it in 2001, and President Barack Obama rescinded it again in 2009. Republicans have since been trying to restore the policy under the Obama administration.
Sen. Jerry Moran (R-KS) introduced an amendment that would bar any funding for the administration to negotiate a United Nations arms trade treaty if it "restricts the Second Amendment rights of United States citizens."
Sen. Mark Kirk (R-IL) is expected to introduce an amendment to mandate sanctions on the Central Bank of Iran in response to the plot to assassinate the Saudi ambassador to the United States, and in light of a new International Atomic Energy Agency report, which states that Iran has made significant progress toward constructing a nuclear weapon.
And Sen. Dan Coats (R-IN) introduced an amendment late on Monday that would prevent the president from trying to get around a law barring U.S. funding for UNESCO. The United States automatically cut off contributions to UNESCO this month when the organization overwhelmingly voted to admit Palestine as a member.
"Despite our legal obligation to suspend funding ... there have been some discussions, some speculation, that it may be possible to find alternative ways to financially support U.N. agencies like UNESCO that have taken this step of admitting the Palestinians as a member," Coats said on the Senate floor late Monday.
"That would be a total mistake and I want to reiterate the fact that it would be a violation of the law. And so, therefore, I come to the floor today to introduce a bill that serves as an emphatic statement, restatement of that."
Several more amendments are expected on Tuesday in what should be a lively debate over foreign affairs funding, if and when the Senate gets around to it. Of course, the Senate action is just a precursor to the House-Senate conference over the bill, where all the final decisions are made behind closed doors.
A group of House lawmakers is making the case for continuing U.S. support to the Palestinian Authority (PA), despite the Palestinian bid to seek full membership in the United Nations.
"Maintaining U.S. assistance to the Palestinian Authority is in the essential strategic interest of Israel and the United States," wrote 44 lawmakers, all Democrats, in a letter today to House Appropriations State and Foreign Ops subcommittee heads Kay Granger (R-TX) and Nita Lowey (D-NY). The letter was spearheaded by Reps. David Price (D-NC) and Peter Welch (D-VT).
Ever since the Palestinians began their statehood drive this summer, Congress has been attacking the $550 million of annual aid given to the PA by U.S. taxpayers. For fiscal 2011, Congress had already provided the Palestinians with about $150 million in direct budget support -- also known as cash -- but $200 million in security funding and about $200 million in humanitarian funding has been held up.
House Foreign Affairs Committee chairwoman Ileana Ros-Lehtinen (R-FL ) released her hold on the security funding last week, but she and Granger are still holding up the non-security funding. Also, Congress is set to consider whether to allocate a whole new tranche of aid to the PA as part of the upcoming negotiations over the fiscal 2012 State and foreign ops spending bill. That bill could come up in the Senate this week or next, leading to a House-Senate conference behind closed doors to iron out a final compromise bill.
"We understand the developments that have led some to call for a suspension or termination of aid to the PA," the 44 lawmakers wrote. "However, these legitimate concerns must be weighed against the essential role that U.S. assistance to the PA plays in providing security and stability for Palestinians and Israelis as well as critical humanitarian relief to the Palestinian people - and the potential consequences if this assistance is terminated."
Currently, the House version of next year's foreign aid bill would terminate all aid to the PA unless the Palestinian government drops its statehood bid at the United Nations and enters into direct negotiations with Israel. The Senate version is less strict; it would only withdraw the funding if the Palestinians actually succeed in joining the United Nations, which isn't likely due to the U.S. veto power at the Security Council. The Senate bill would also give the president a waiver over cutting aid to the PA.
"The prospect of continued assistance depends on the actions of Palestinian leadership, which can choose to pursue a path of direct negotiations rather than a counterproductive and destabilizing push for statehood through the UN and affiliated agencies," Matthew Dennis, spokesperson for Lowey, told The Cable.
"The chairwoman takes the views of all members into consideration," said Matt Leffingwell, spokesman for Granger.
President Barack Obama's administration has been clear that it wants U.S. aid to the PA to continue, because the assistance impacts Israeli security. Sen. Lindsey Graham (R-SC), the ranking Republican on the Senate Appropriations State and Foreign Ops subcommittee, told The Cable last week that he agrees that aid to the PA is important but will fight to end it anyway because of the politics surrounding the issue.
"I don't think that's in our near-term or long-term interest, but that's what's going to happen, that's where this thing is headed," Graham said.
The Democratic lawmakers who are making the case for the aid, along with some non-governmental organizations such as J Street, want to make sure top appropriators know that there is some support for aid to the Palestinians in Congress.
"The Price-Welch letter puts down a marker that there is a difference of opinion on whether aid to the PA should continue in Congress," Dylan Williams, J Street's director of government affairs, told The Cable today.
Williams said that many of the letter's signers supported House Resolution 268, passed in June, which threatened to cut off aid to the PA if it continued to seek U.N. membership. But seeing as how the Palestinians were able to join UNESCO with overwhelming international support, forcing the United States to stop contributing to that organization, he said those threats no longer makes sense.
"The situation has changed since HRes 268 and the bid to keep the Palestinians away from the United Nations has failed," Williams said.
The State Department is trying to convince Congress not to cut U.S. funding for the Palestinian Authority (PA), despite the fact that the Palestinians are defying the United States by seeking statehood at the United Nations and specialized U.N. agencies.
"Congress should be aware of the potential second and third order effects of cutting off assistance to Lebanon and the Palestinian Authority," Andrew Shapiro, assistant secretary of State for political-military affairs, told an audience at the Washington Institute for Near East Policy on Friday. "We must ask ourselves, if we are no longer their partner, who will fill the void? We must think about the other potential partners that could fill the space left behind, and that should give us pause."
When the State and Foreign Ops appropriations bill comes up in the senate, probably next week, foreign aid will be scrutinized like never before by legislators eager to find budget cuts wherever they can. Leaders in both parties have also pledged to cut U.S. aid to the PA in order to punish the Palestinians for seeking statehood outside the peace process.
Just last week, lawmakers reacted angrily to the Palestinians' successful bid to join UNESCO, which triggered a law requiring the U.S. government to halt its contributions to the organization.
Senate Appropriations State and Foreign Ops subcommittee ranking Republican Lindsey Graham (R-SC) told The Cable on Nov. 1 that Congress is poised to cut off all U.S. funding for the PA, which totaled $550 million in fiscal 2011, despite the fact that he still thinks financial support for the PA is a good idea.
"I don't think that's in our near-term or long-term interest, but that's what's going to happen, that's where this thing is headed," Graham said.
The Cable asked Shapiro how the State Department planned to defend PA funding and what the prospects were for success.
"We are in discussions with Capitol Hill about the best way to provide support," Shapiro responded. "Hopefully we'll be able to reach an agreement with Capitol Hill that preserves our interests."
Shapiro also urged Congress not to place conditions on U.S. aid to Egypt, which includes billions in military and economic support funding each year.
"I know that the uncertainty of the Egyptian transition has prompted some in Congress to propose conditioning our military assistance to Egypt. The administration believes that putting conditions on our assistance to Egypt is the wrong approach," Shapiro said. "Now is not the time to add further uncertainty in the region or disrupt our relationship with Egypt. Conditioning our assistance to Egypt risks putting our relations in a contentious place at the worst possible moment."
He also addressed State Department funding of political training for parties in Egypt, even Islamic parties that may have anti-Western agendas.
"As these Arab countries are going into political transitions, a number of new people are coming into the political process, many of whom describe themselves as Islamists. But that doesn't necessarily mean that they are anti-democratic." Shapiro said. "We need to support an effort and structure to channel this energy that's coming into the political process into an understanding of what democracy means and the benefits of it, and our training on the ground is designed to do so."
The Cable also asked Shapiro to explain the State Department's latest thinking on the proposed $53 million arms sale to Bahrain, which is also facing stiff congressional opposition. State has said it will consider the report of an "independent" Bahraini human rights commission before moving forward with the sale. Shapiro said that U.S. policymakers will also consider the Bahrain government's response to the report.
"We have committed that we will not move forward with that sale until the report comes out and we are able to assess the reporting and the Bahraini government response," he said.
The war in Iraq may be ending, but the fight over who gets to oversee the billions of U.S. taxpayer dollars still being spent there is just heating up.
The Office of the Special Inspector General for Iraq Reconstruction (SIGIR) -- led by Stuart Bowen -- has been embroiled in a fight with the State Department, which has blocked SIGIR inspectors from assessing State's multi-billion dollar Iraqi police training program.
The Project on Government Oversight (POGO) reported last week that SIGIR managed to complete the report, which stated that the State Department "does not have a current assessment of Iraqi police forces' capabilities ... such an assessment is essential for effective program targeting."
"The SIGIR audit berated [the State Department] in its first sentence for failing to cooperate in the investigation, which ‘resulted in limited access to key officials and documents,'" POGO noted. "The IG was still able to complete the investigation however, through ‘limited discussions' and ‘documents obtained from other sources.'"
On Tuesday, five U.S. senators wrote to Secretary of State Hillary Clinton to urge her department to cooperate with SIGIR and provide SIGIR with requested information and documents.
"The State Department is explicitly directed to provide whatever information or assistance is needed by SIGIR, so long as SIGIR's request is ‘practicable and not in contravention of any existing law.' In addition, State Department officials are prohibited from ‘prevent[ing] or prohibit[ing] the Inspector General from initiating, carrying out, or completing any audit' related to funds involved in Iraq reconstruction," the senators wrote. "Despite these requirements, the State Department has failed to provide SIGIR with adequate assistance and access to information and documents."
The letter's signatories were Joseph Lieberman (I-CT), Susan Collins (R-ME), Claire McCaskill (D-MO), Tom Coburn (R-OK), and Lindsey Graham (R-SC).
"SIGIR is perfectly free ... to audit the reconstruction activities in Iraq. They are not free to audit the base element of the State Department. That is within the jurisdiction of three other entities," Under Secretary of State for Management Patrick Kennedy told the Wartime Contracting Commission in a hearing last month.
The senators wrote that SIGIR "has jurisdiction to audit all Iraq reconstruction funds, including those spent on contracts which may also support other State Department activities."
"It is absurd for Under Secretary Kennedy, or whoever it is, to suggest that the State Department is suffering from too much oversight in Iraq," a senior GOP Senate aide told The Cable today. "He should take some time and read the Commission on Wartime Contracting report."
Full text of the senators' letter after the jump:
It's been almost one year since the Office of the Special Inspector General for Afghanistan Reconstruction (SIGAR) has had a permanent leader ... and Sen. Claire McCaskill (D-MO) is not happy about it.
SIGAR Arnie Fields resigned in January following over a year of bipartisan congressional criticism of his stewardship of the oversight office, which is responsible for finding waste, fraud, and abuse in the tens of billions of U.S. taxpayer dollars being spent to build Afghanistan. On Aug. 4, acting Special Inspector General Herbert Richardson, Fields's replacement, stepped down after only six months on the job, leaving that troubled office without a leader for the second time this year.
Now, three months later, there are no signs the White House is ready to name a new SIGAR. McCaskiill, who has been leading the drive to improve the office along with Sens. Tom Coburn (R-OK) and Susan Collins (R-ME), told The Cable in an interview on Tuesday that the vacancy is troubling and unacceptable.
"I am pushing as hard as I can to get a replacement named," McCaskill said. "Obviously I was very involved in getting General Fields out. I thought the interim [Richardson] was doing much better. I think it's unfortunate that he's gone and we need to get someone else in there."
McCaskill said that she asked the White House for an update on the status of a replacement late last month, and was led to believe a nomination was in the works. But none has materialized. So what's the reason for the inaction?
"I haven't gotten a good answer yet [from the White House]," McCaskill said.
A senior GOP senate aide told The Cable that senate staffs were informed a selection had been made but then that person turned down the job and now the administration is back to square one in looking for a candidate.
McCaskill added that while the auditing at SIGAR continues, the ongoing confusion atop the organization speaks to the need for a new, permanent special inspector general for all overseas contingency operations -- a proposal known as the Office of the Special Inspector General for Overseas Contingency Operations (SIGOCO), which was recommended by the Wartime Contracting Commission.
McCaskill said there is a need for a top oversight official who is "capable of going and looking wherever the U.S. military is operative."
The SIGOCO idea was first devised by Special Inspector General for Iraq Reconstruction (SIGIR) Stuart Bowen, who has been embroiled in a fight with the State Department over that agency's blocking of SIGIR inspectors from assessing the State's multi-billion dollar Iraqi police training program.
"SIGIR is perfectly free ... to audit the reconstruction activities in Iraq. They are not free to audit the base element of the State Department. That is within the jurisdiction of three other entities," Under Secretary of State for Management Patrick Kennedy told the Wartime Contracting Commission in a hearing last month.
Today, Newsweek reported that Bowen believes the Iraqi Army is not fully prepared to take over security in Iraq as U.S. forces withdraw this year.
"As we pull out of Iraq, the Iraqis will have a difficult time replacing the U.S. role in intelligence, logistics, and air defense," Bowen said. "Whether they can sustain themselves if called upon for significant field operations is a big question mark."
Following the State Department's announcement that it had cut off U.S. funding from UNESCO in response to its overwhelming vote in favor of accepting the Palestinian bid for full membership, senators from both parties predicted the United States would cut funding or even withdraw from several other international organizations the Palestinians seek to join.
As The Cable reported last month, the Obama administration is required by existing U.S. law to cut off funding for any international organization that grants the Palestinians full membership. . Membership in UNESCO also grants the Palestinians membership in the World Intellectual Property Organization (WIPO) and the United Nations Industrial Development Organization (UNIDO). The United States is not a member of UNIDO, but will be forced to stop contributing to WIPO.
But that's only the tip of the iceberg. The Palestinians could seek membership in more prominent international organizations, which could result in the United States defunding or even withdrawing from institutions such as the World Health Organization and the International Atomic Energy Agency. The AP reported today that the Palestinian Authority was examining seeking membership in 16 more U.N. organizations.
While leading senators in both parties acknowledge that such an outcome would be negative for U.S. interests and influence, they have no intention of intervening to change the law. To the contrary, several top senators in both parties told The Cable they support the policy and will work to enforce it, despite the consequences.
"This could be catastrophic for the U.S.-U.N. relationship. This could be the tipping point," Sen. Lindsey Graham (R-SC), the top Republican on the Senate Appropriations State and Foreign Ops Subcommittee, told The Cable in an interview on Tuesday.
"There's a lot of bipartisan support for cutting off funding to any political U.N. organization that would do this," he said. "What you are going to do is eventually lose congressional support for our participation in the United Nations. That's what's at risk here. That would be a great loss."
Graham said he believes it is in the U.S. interest to actively participate in these organizations. And yet, he plans to introduce a Senate resolution to formally withdraw U.S. membership in UNESCO -- a more serious action than simply cutting off funds. He intends to do the same for any other international organizations the Palestinians succeed in joining.
Graham also said that Congress is poised to cut off U.S. funding for the Palestinian Authority (PA), which totaled $550 million in fiscal 2011, despite the fact that he still thinks financial support for the PA is a good idea.
"I don't think that's in our near-term or long-term interest, but that's what's going to happen, that's where this thing is headed," Graham said.
But isn't the United States just spiting itself by withdrawing from organizations in order to punish them for recognizing the Palestinians?
"Not really," Graham replied. "The world has to make a decision.... If the U.N. is going to be a body that buys into Palestinian statehood ... then they suffer. It's a decision they make."
Graham is seen as the most important GOP lawmaker in the fight to maintain foreign aid and U.S. involvement in international organizations, because of his subcommittee position and his genuine support for such issues. But when it comes to the issue of Palestinian recognition, the politics just don't allow any room for compromise, he said.
"I'm the closest thing to a friend [U.N. supporters] have [in the GOP]," he said. "But if the Palestinians continue to go to more organizations, such as the World Health Organization, well -- it's just going to be politically impossible for a guy like me to support a body who's playing a destructive game with the peace process."
Most of Graham's GOP colleagues are not as conflicted as he is with the idea of U.S. withdrawal from U.N. organizations.
"They've made a decision and they will pay the consequences for their decision," Sen. John McCain (R-AZ) told The Cable, referring to UNESCO. "And that is that U.S. tax dollars are not going to be spent, if I have anything to do with it, on organizations that take the measures they've taken."
Will senior Senate Democrats intervene on behalf of the U.S. role in international organizations? Not likely. Democratic senators told The Cable they either support cutting funds to U.N. organizations that grant membership to the Palestinians, or at least don't plan to do anything about it.
"We've put a very clear marker down in terms of what would be the result if there was an effort to prematurely declare a Palestinian state and [the administration] is implementing what they said they would do," said Senate Armed Services Committee chairman Carl Levin (D-MI). "It was the right thing to do and they should be implementing it."
Levin said that he hoped U.S. retaliatory action would slow down the Palestinian drive for recognition, and maintained that the United States would increase its influence by carrying through on its threats. The vote in UNESCO's General Conference was 107 to 14 in favor of Palestinian membership, with 52 abstentions.
Senate Appropriations State and Foreign Ops subcommittee chairman Patrick Leahy (D-VT) told The Cable today he was fine with the cutting off of funds to UNESCO.
"That's what the law requires. It's been there for 20 years and whether I support it or not, that's the law," he said.
The senators don't blame the Obama administration for what is happening at the United Nations, because the administration has consistently called for the Palestinians to stop their statehood bid there. But Hill staffers in both parties have complained that the administration doesn't seem to have a plan to get out of the crisis or find a way around the law.
One Senate Republican staffer close to the issue told The Cable, "The administration is behaving just like a deer frozen in the headlights on this."
All the GOP presidential candidates agree on one thing: The United States should cut foreign assistance and international humanitarian assistance programs. Their only differences are over how much.
"The American people are suffering in our country right now. Why do we continue to send foreign aid to other countries when we need all the help we can get for ourselves?" asked a woman in the audience of Tuesday's GOP primary debate in Las Vegas.
Rick Perry started off the responses by calling for "a very serious discussion about defunding the United Nations." The crowd cheered and applauded.
Calling the Palestinian drive to seek member status at the United Nations in September a travesty, Perry said that was reason enough to stop contributing. "Why are we funding that organization?" he asked.
Mitt Romney said that defense-related portions of the foreign aid budget should be transferred to the Defense Department and humanitarian aid responsibilities should be ceded to the Chinese government.
"I happen to think it doesn't make a lot of sense for us to borrow money from the Chinese to go give it to another country for humanitarian aid. We ought to get the Chinese to take care of the people that are -- and think of that borrowed money," he said to applause from the crowd.
If either of the leading candidates were somewhat measured, Ron Paul was not. He said that foreign aid "should be the easiest thing to cut" because it's not explicitly authorized in the Constitution. "To me, foreign aid is taking money from poor people in this country and giving it to rich people in poor countries, and it becomes weapons of war, essentially, no matter how well motivated it is," he said.
Paul also said we should cut all foreign aid to Israel. Michele Bachmann disagreed, taking the opportunity to make the case that President Barack Obama is the first president to put "daylight" between the United States and Israel.
"That's heavily contributed to the current hostilities that we see in the Middle East region," she said, reprising her criticism of the entire Arab Spring.
The candidates also weighed in on defense spending. Bachmann was asked if defense spending should be on the table for cuts, and wavered somewhat, opening the door to cuts while saying that $500 billion in defense budget cuts that would be triggered if the congressional supercommittee can't come to a deal to find at least $1.2 trillion in cuts was too much.
Newt Gingrich, calling himself a "cheap hawk," said that the supercommittee was not qualified to make such decisions and said the defense budget should be driven by strategy and threats, not arbitrary numbers.
"The idea that you'll have a bunch [of] historically illiterate politicians who have no sophistication about national security trying to make a numerical decision about the size of the defense budget tells you everything you need to know about the bankruptcy of the current elite in this country -- in both parties," he said.
For FP Passport's compilation of the debate's foreign policy highlights, click here.
The Obama administration is scrambling right now to find a way around the fact that existing U.S. law could force the United States to stop participating in the U.N. cultural agency UNESCO if the Palestinians are given member state status, setting a precedent that could repeat itself in a host of other U.N. organizations.
The administration is contending with a 1994 law (P.L. 103-236, Title IV), which would bar U.S. contributions "to any affiliated organization of the United Nations which grants full membership as a state to any organization or group that does not have the internationally recognized attributes of statehood."
Another law (P.L. 101-246, Title IV), from 1990, states that, "No funds authorized to be appropriated by this act or any other act shall be available for the United Nations or any specialized agency thereof which accords the Palestine Liberation Organization the same standing as member states."
The Palestinians cleared a hurdle this week when the UNESCO executive board approved their bid to join the organization, sending the matter to a vote by UNESCO's 193-nation General Conference. Secretary of State Hillary Clinton criticized UNESCO on Wednesday for taking up the issue.
"I think that that is a very odd procedure indeed and would urge the governing body of UNESCO to think again before proceeding with that vote," Clinton told reporters in the Dominican Republic.
She acknowledged the "strong legislative prohibition that prevents the United States from funding organizations that jump the gun, so to speak, in recognizing entities before they are fully ready for such recognition."
The U.S. has not yet paid their bills on UNESCO for 2011, about $80 million, which is 22 percent of UNESCO's budget. If the law is triggered and the U.S. does not pay in 2012, the U.S. would lose its vote in the organization. Plus, UNESCO officials have told the U.S. that if U.S. funds are not expected over the next two years, they may have to initiate massive layoffs beginning in January to account for the shortfall in funds.
Palestinian membership in UNESCO would also grant them immediate membership in the World Intellectual Property Organization (WIPO) and the United Nations Industrial Development Organization (UNIDO). The U.S. would have to stop contributing to WIPO but America is not a member of UNIDO.
We're told that the State Department is currently having their attorneys draft a legal opinion on how U.S. laws would affect U.S. participations in U.N. bodies that grant the Palestinians member state status. Their ruling will have ramifications not only for UNESCO, but for all other U.N. specialized agencies that the PLO is expected to submit their application to, such as the IAEA, WTO, WHO, World Bank, and others.
State Department spokeswoman Victoria Nuland said Thursday that the administration was "still working" on what the legislative triggers regarding funding would mean. But a State Department official said that the administration has not been able to find a way around the law.
"We have a suicide vest padlocked around our torso and the Palestinians have the remote control," the State Department official said. "They get to decide whether they blow us up or not. It's 100 percent up to them."
Meanwhile, Congress is ratcheting up its own involvement on the issue. Later today, 10 House appropriators will call on UNESCO not to move forward with consideration of Palestinian membership, in a letter to UNESCO Executive Director Irina Bokova obtained by The Cable.
"We... respectfully request that you do everything in your power to ensure that the Palestine Liberation Organization's application to become a Member State does not come before the UNESCO General Conference," states the letter, prepared by the office of Rep. Steve Rothman (D-NJ). "Any recognition of Palestine as a Member State would not only jeopardize the hope for a resumption of direct Israeli-Palestinian negotiations, but would endanger the United States' contribution to UNESCO."
Signatories of the letter include the heads of the House Appropriations State and Foreign Ops subcommittee, Kay Granger (R-TX) and Nita Lowey (D-NY), Jerry Lewis (R-CA), Tom Cole (R-OK), Jesse Jackson Jr. (D-IL), Steve Austria (R-IL), Charles Dent (R-PA), Mario Diaz-Balart (R-FL), and Adam Schiff (D-CA).
One senior Republican staffer pointed out the irony that it was President George W. Bush who brought the United States back into UNESCO, and now the United States might be forced to leave the organization by Obama -- a president who came to office promising to reverse what he argued was Bush's tendency to ignore the international community.
"Remember, we joined UNESCO in part because we needed them to help de-radicalize textbooks particularly in the Muslim world after 9/11 and as a platform to counter expanding anti-American attitudes in academia," the staffer said "And now, by de-funding UNESCO, we lose all the leverage we had gained."
Reps. Gregory Meeks (D-NY) and Dan Burton (R-IN) have started a new congressional caucus to increase engagement with Russia and to push for action to promote Russia's bid to join the World Trade Organization.
Meeks and Burton, the chairs of the House Foreign Affairs Subcommittee on Europe and Eurasia, started the Congressional Russia Caucus last month after returning from a trip to Moscow. They are the only two members of the caucus, just yet, but they're canvassing for new members now. They plan to build connections with Russian officials, increase legislative exchanges with the Russian Duma, and advocate for the repeal of the Jackson-Vanik amendment, a 1974 U.S. law that prevents the United States from granting Russia Permanent Normal Trade Relations (PNTR) status.
"When you think about Russia, they are an important nation in an important part of the world. And we have to make sure we begin to work with them in a post-Cold War way," Meeks told The Cable in an interview on Tuesday.
Meeks said he has been coordinating with the Obama administration, which is supporting Russia's WTO bid as part of its overall effort to reset relations with Russia.
"The administration was very appreciative of us starting this caucus; they thought it was a good idea. They said they looked forward to working with us," Meeks said.
Both Meeks and Burton said they were encouraged to start the caucus after meeting with American businessmen and members of the American Chamber of Commerce in Moscow. Both denied they had benefited financially as a result of their efforts on behalf of the U.S.-Russia relationship.
"We want to engage Russians on economics and trade affairs," Burton said in a Tuesday interview with The Cable. Regarding the repeal of Jackson-Vanik, Burton said, "That's something that the Congress has to do for the U.S. to get all the benefits of Russia joining the WTO. If that doesn't happen, Russia would be entitled to all its benefits [as a WTO member] but the U.S. would be disadvantaged."
Russia's accession to the WTO and the repeal of Jackson-Vanik "would be good for Russia and the world," Burton said.
Burton's position on Russian accession to the WTO and Jackson-Vanik puts him in direct opposition to his own committee chairwoman, Ileana Ros-Lehtinen (R-FL), who said in July that repeal of Jackson-Vanik was impossible. And she's no fan of Russia's once-and-future president, Vladimir Putin.
"Putin's present-day Russia is taking on a more Stalin-era appearance every day," Ros-Lehtinen said in July. "The administration must end its string of concessions to the regime in Moscow, which have not resulted in increased cooperation with the U.S. or an improvement in Russia's human rights record."
Meeks and Burton both also said that they could use the caucus to press Russia toward more progress on democratization, human rights, and respect for the rule of law.
"We do care about those things. What we're going to do is open a dialogue on all these things so we can move in the right direction," Burton said.
USAID Administrator Rajiv Shah is on a plane right now on the way to Kenya and Ethiopia, where he will be touring areas affected by the worst drought the region has seen in over six decades.
"I'm going to Kenya and Ethiopia to visit with heads of state and senior leadership as well as to pull together the humanitarian and NGO communities to assess progress on the challenges that the drought has brought to the Horn of Africa," Shah said in an interview with The Cable on his way to the airport.
He won't be going to Somalia, however, which has been ravaged by a famine that shows little sign of abating. Shah said there are good reasons why Ethiopia and Kenya are doing better than Somalia -- beyond the fact that the al-Shabab extremist group in Somalia is getting in the way of delivering aid.
"In Kenya and Ethiopia, because of constructive investments in protecting communities dependent on livestock, we know more than four and half million people stayed in their communities and have weathered this drought.... In Somalia the opposite has taken place," he said.
Shah said that more than 30,000 people have died, mostly children, due to Somalia's failure to prepare for and deal with the crisis, and the State Department estimates another 750,000 are at risk over the next four to six months, Shah said.
The United States has provided more than $640 million to date in response to the Horn of Africa crisis, including a new announcement of $42 million late last month.
The focus of this trip will be to recommend policy reforms in Kenya and Ethiopia to better handle the crisis. Those governments are taking some steps, such as ensuring the safe passage of aid and making sure refugees are accepted and assisted, but the problem continues and more government action is needed, Shah said.
Shah will meet with the humanitarian organization leaders in both Kenya and Somalia to help coordinate emergency action inside Somalia. The State Department has removed some restrictions on contractors and aid workers in Somalia, in recognition of the fact that strict rules preventing interactions with groups like sl-Shabab were impossible to enforce in Somalia.
"We have made exceptions on a range of policies that have allowed credible partners to be aggressive in their efforts to try to save lives," Shah said. "At the same time, we've asked for all of our partners to track and monitor the flow of food and benefits, commit themselves not to pay bribes, and we continue to watch that."
"Unfortunately, though, that's not the key to saving lives inside Somalia. The key is actions taken by leadership inside Somalia and that's what we'll be talking about in this visit."
In Kenya, Shah will attend a health conference along with Ambassador and former Special Envoy Scott Gration and in Ethiopia he will attend an agricultural conference. Shah is traveling with Ertharin Cousin, ambassador to U.N. agencies for agriculture
The State Department may be facing its toughest budget season ever, but there are still plenty of lawmakers who are ready to defend funding for diplomacy and development, according to Deputy Secretary of State Tom Nides.
Congress rejected, by a 20 to 78 vote, an attempt by Sen. Rand Paul (R-KY) last week to fund $6.9 billion in emergency disaster relief by taking the money out of the State Department's foreign assistance budget. Sens. John Kerry (D-MA), Patrick Leahy (D-VT), and Lindsey Graham (R-SC) all came to the State Department's defense.
"I think getting 78 votes against it was pretty darn good," Nides told The Cable in an interview. "We have bipartisan support. Clearly the great majority of the Senate thought it was not the right thing to do... Even in difficult times, people don't want to do things that would dramatically impact our national security."
Graham responded to Paul and defended foreign aid funding in a speech at the Council on Foreign Relations Sept. 16. Graham explained how he defends foreign aid to the man on the street, a man he called "Bubba."
"Here's what I'd tell ‘Bubba,' when he asked," Graham said. "I'd say, listen, I got it, pal. We're not going to write any more checks to dictators and let them waste your money. We're just not going to through money. But less than 1 percent of what we spend at the federal level is on foreign assistance."
Nides said that Graham has been "enormously helpful" in defending foreign assistance. "He fundamentally believes that the funding of State Department and USAID is critical to our national security. His argument is not that we should be funding these things just based on humanitarian grounds, as important as that may be."
The chairs of the Senate Foreign Relations Africa subcommittee, Sens. Chris Coons (D-DE) and Johnny Isakson (R-GA) have also emerged as advocates for foreign assistance funding. In a Sept. 19 letter to the chairs of the Senate Appropriations State and Foreign ops subcommittee, obtained by The Cable, they defended funding for development assistance and the USAID operations accounts, both of which are slashed in the House version of next year's appropriations bill.
"Development assistance is a reflection of our moral imperative to assist others in need, a critical demonstration of American leadership in the world," they wrote. "We are keenly aware of the budgetary pressures facing Congress... we are concerned that reductions to development assistance will undermine U.S. priorities in Africa and throughout the developing world."
Nides said that the House version of the State and Foreign Ops appropriations bill, which would give $39.6 billion in fiscal 2012 to international affairs funding, "would have dramatic impact on the operations of the State Department." The Senate version, which would provide about $44.6 billion, is "more reasonable," he said.
Nides said that the State Department and USAID have succeeded in being added to the national security discussion -- but that also places diplomacy and development funding in competition with national security accounts, including the defense budget.
"You've got to fund defense, but not at the cost of depleting your diplomacy and development. That would be shortsighted," he said.
The supercommittee that is working on discretionary budget cuts this fall must deal with caps on "security" spending, which bundles defense, diplomacy, and development funding into one big pool of money. And that could leave the U.S. diplomatic corps as the odd man out.
The State Department does have one very powerful friend who sits on that committee, Senate Foreign Relations Committee chairman John Kerry (D-MA). So does Nides think Kerry will use his supercommittee perch to come to State's defense?
"My assumption is that he'll do whatever he can to be supportive, but first and foremost he's going to have to do what's in the best interest of the American people," said Nides. "I think he will determine that that includes protecting our national security, and that includes funding for State and USAID."
The White House today adopted Rep. Paul Ryan's dubious claim that winding down the wars in Iraq and Afghanistan would save $1 trillion over the next decade.
"The plan produces approximately $4.4 trillion in deficit reduction net the cost of the American Jobs Act," the White House said in a fact sheet issued to accompany President Barack Obama's new plan to cut the deficit. "$1.1 trillion from the drawdown of troops in Afghanistan and transition from a military to a civilian-led mission in Iraq."
The more than $1 trillion in defense "savings" that the White House claims is based on a projection the Congressional Budget Office (CBO) put out last March, which found that war costs would top $1.7 trillion over the next ten years. However, that projection was never meant to accurately forecast the costs of the wars over the next decade. The report just took this year's costs for Iraq and Afghanistan ($159 billion) and added inflation for every year in the future.
In other words, the CBO number was the projection if the United States kept the current number of troops in Iraq and Afghanistan until 2020. However, nobody ever thought that was the plan. The CBO was required to do the math that way, as they do with all such projections.
At today's White House briefing, reporters were quick to point out that Obama never planned to keep that many troops in Iraq and Afghanistan for the next ten years. Office of Management and Budget (OMB) Director Jack Lew's response was to point out that the House GOP had used the same faulty logic in Paul Ryan's budget plan.
"There is no doubt that those are going to be savings when presented to Congress. The Republican budget in the House took account of them," Lew said, referring to the Ryan budget plan that the House passed in April.
It's also true that Senate Majority Leader Harry Reid (D-NV) claimed the same "savings" in the plan he released to avert a debt ceiling crisis, although that plan never got any traction. But the CBO issued a report on the day Reid's plan was released to make it clear that its projection should not be used in this way.
"It is important to note that the administration projection is not really a policy-based estimate -- CBO takes the most recent number and that becomes their baseline," said the report, which was crafted for congressional offices and obtained by The Cable.
The White House's gambit is only its latest attempts to claim savings from cutting defense when actually no cuts exist. The White House claimed it had cut $350 billion from defense over ten years as part of the debt ceiling deal, but actually there are no defense cuts in the bill.
What the bill does is set spending caps for "security" spending, which the administration defines as defense, homeland security, intelligence, nuclear weapons, diplomacy, and foreign aid. There's no breakdown that defines which of these agencies get what, so there's no way to be sure that all the cuts would come from "defense." Moreover, the spending caps are split between "security" and "non-security" discretionary spending only for fiscal 2012 and fiscal 2013.
If the next five Congresses actually cut the defense budget by $350 billion and if the Congressional supercommittee fails to find another $900 billion in discretionary cuts, that would "trigger" another $600 billion cuts in defense over ten years. Added to the $350, that would total about $1 trillion in defense "savings."
But Lew was clear that the trigger, which officials are now referring to as "sequestration," is not something the administration wants to happen.
"I don't know any serious policymakers on either side of the aisle who think sequestration is a good place to go," he said. "It was designed to be something that would have bad consequences wherever you look because it is not a serious set of policies."
The State Department has opened a brand-new office to manage U.S. policy toward countries attempting democratic transitions in the Middle East.
William Taylor, senior vice president for conflict management at the U.S. Institute of Peace, has moved over to Foggy Bottom to lead the new office, called the Middle East Transitions office, which began operations this week. His deputy is Tamara Cofman Wittes, who is now dual hatted, also continuing on deputy assistant secretary of state for Near Eastern Affairs. Taylor's chief of staff is Karen Volker, who until August was director of the Middle East Partnership Initiative (MEPI), which is now directed by Tom Vajda. MEPI also falls under Wittes' portfolio. Taylor reports up to Deputy Secretary of State Bill Burns and Assistant Secretary of State for Near Eastern Affairs Jeffrey Feltman.
In a Monday interview with The Cable, Taylor said his office will begin by leading State Department coordination on policy toward Egypt, Tunisia, and Libya, the three Middle East countries that are trying to make the shift from dictatorship to democracy.
"The idea is we want to focus energy and policy attention on how we support these three transition countries," he said. "The idea is to be sure this gets top-level attention in the department."
Taylor's office will have about 10 to 12 people, and he said he hopes to soon add a resident senior advisor from both USAID and the Pentagon. The office is meant to be permanent, and would expand its operations to cover countries like Syria and Yemen -- if and when those countries attempt a democratic transition.
Taylor's first job will be to lead an effort to develop support strategies for Egypt, Libya, and Tunisia. Then, his office will go about trying to implement those strategies by working within State, around the interagency process, and then with international financial institutions, non-governmental organizations, and stakeholders on the ground. Taylor said he will attend National Security Council meetings on issues related to his brief.
In President Barack Obama's May 19 speech on the Middle East, he promised to work on establishing enterprise funds for Egypt and Tunisia, which are accounts meant to support start up programs and activities abroad, and said that U.S. support for democracy will "be based on ensuring financial stability; promoting reform; and integrating competitive markets with each other and the global economy -- starting with Tunisia and Egypt."
Taylor said that the administration was still eager to pursue enterprise funds for these countries, but that legislation would be needed to get it done.
"We're looking at the possibly of enterprise funds model as a possible model for these transition countries but we're going to need a lot of support from Congress," he said, adding that State would also ask Congress for authorizations and appropriations to support the new transitions initiative at State. New funding for diplomatic initiatives is a tough sell in this tight fiscal environment, but transition funding does have some support in both parties.
Taylor was chosen for the job in part because he played a key role in a similar diplomatic effort following the collapse of the Soviet Union. In 1991, the State Department put together the Freedom Support Act Office, which managed relations with former members of the Soviet bloc.
That office was run by Ambassador Richard Armitage and reported up to Deputy Secretary of State Lawrence Eagleburger. Taylor worked for Armitage in that office and eventually became its director, a position he held until 2001. The Freedom Support Act Office was combined with the Support for East European Democracy (SEED) office and still exists today.
Taylor was U.S. ambassador to the Ukraine from 2006 to 2009, and before that served as Washington's envoy to the Mideast Quartet. In 2004 and 2005, he directed the Iraq Reconstruction Management Office in Baghdad, and from 2002 to 2003 he served in Kabul as coordinator of U.S. government and international assistance to Afghanistan.
John Hudson reports on national security and foreign policy from the Pentagon to Foggy Bottom, the White House to Embassy Row, for The Cable.