supplementing its military modernization program. The subcommittee supports the
continued eligibility of Turkey under Section 516 of the Foreign .'\ssistance .Act of 1961. as
amended, for transfers of United States excess military equipment.
6. The subcommittee congratulates Turkey on the progress that it has made in
addressing its economic problems in recent years and encourages it to continue efforts to
address remaining problems including: high inflation, privatization of state-owned
enterprises, balance of payments performance and expansionary fiscal policy.
7. The subcommittee wishes to underscore the importance of reaching a resolution
of the Cyprus problem. It notes that Turkey has a special role to play in the final
resolution of the Cyprus problem due to its close economic and political links to the
Turkish-Cypriot community and to the presence of Turkish troops and Turkish mainland
settlers on the island. The subcommittee continues to feel that a reduction of Turkish
forces on the island would make a major contribution to the settlement of the Cyprus
8. The subcommittee supports the resumption of a high level dialogue between
Greece and Turkey. It believes that the U.S. has an impxjrtant role to play in facilitating
the reduction of tensions between Greece and Turkey. It urges the administration to
make this objective a high priority in its contacts with the governments of both countries.
9. The subcommittee notes that Turkey has been facing armed attacks by Kurdish
insurgents and terrorists (PKK) for the past several years. Some 6.000 people have died
since 1984. most of them in the past two years, as a result of the violent conflict being
waged in the southeast. The subcommittee regrets the recent breakdown of the ceasefire
announced in March 1993. The subcommittee hopes that all possibilities for a permanent
ceasefire in this region will be explored.
10. The subcommittee remains deeply disappointed about ongoing human rights
violations in Turkey. Despite acknowledgments by recent Turkish governments that
human rights problems exist and despite repeated promises of improvements - the
coalition government of former Prime Minister Demirel came to office with a
particularly ambitious human rights program - most of the long-standing human rights
problems continue, and several new ones have arisen. The subcommittee takes note of the
most recent State Department Human Rights Report, which says Turkey's primary human
rights problems include: torture: political killings; disappearances, mainly of Kurdish
political activists: so-called "mystery killings." in which murders of Kurdish activists have
not been investigated and leads suggesting possible involvement by Turkish security forces
have been ignored; and limits on freedom of expression and association.
The subcommittee remains concerned with the issues of the rights of the ethnic
Kurdish citizens of Turkey, treatment of prisoners, freedom of the press, and other
human rights issues in Turkey. The subcommittee takes note of some important, but
limited, efforts by the Turkish government to improve the human rights situation. In
particular, it notes that the Criminal Trials Procedure Law, passed in November, gives
most suspects the right to immediate access to legal counsel and shortens permissible
pre-arraignment detention periods to between 24 and 96 hours. Nevertheless, this law
does not apply to those accused of terrorism, political crimes, or offenses that take place
in areas of so-called "emergency rule." a quasi-martial-law status that applies throughout
Turkey's overwhelmingly Kurdish southeast.
The subcommittee similarly welcomes Turkeys loosening of restrictions on use of
the Kurdish language, oral and written, over the past two years, as well as the
near-unbridled discussion of "the Kurdish problem" in the daily Turkish press. The legal
status of Kurdish-related reforms has not been clarified in many cases, however, leaving
citizens subject to seemingly whimsical prosecution. For e.xample. those exercising
Constitutionally-guaranteed freedom of the press have sometimes been prosecuted and
sentenced under a highly subjective "Anti-Terror Law ' that outlaws "written and oral
propaganda. ..aimed at damaging the indivisible unity of the State. ..regardless of the
method, intention, and ideas behind it." Employees of Kurdish and pro-Kurdish
publications in Turkey are frequently subject to harassment and the publications
themselves are often confiscated from the newsstands.
The subcommittee hopes that ethnic Kurds will soon enjoy the full range of human
rights, including freedom of cultural and political expression. The emergence of a
pro-Kurdish political party, the People's Labor Party (HEP), is a positive development
and a sign of Kurdish willingness to work for reform within the framework of a
democratic Turkey. The subcommittee urges an end to harassment of HEP and its
members. At the same time, the subcommittee oppxjses Kurdish separatism and strongly
condemns the use of violence by Turkish Kurds in their effort to achieve rights or other
?3litical aims. The subcommittee urges the Administration to deepen its dialogue with
urkey on human rights issues and to raise these issues regularly at senior levels.
The subcommittee sees Turkey as an important friend and ally and favors, over the
long term. Turkey's full integration into the West and Western institutions. Progress
toward this objective will be enhanced once Turkey achieves full Western standards in its
human rights performance. The subcommittee expects the Turkish government to follow
through on its pledges and to undertake meaningful human rights reforms at the soonest
possible time. It is in the interest of the U.S.. Turkey, and particularly U.S.-Turkish
relations that serious human rights violations cease to occur in Turkey.
(In millions of dollars)
1991 1992 1993
15.0 15.0 15.0
L The subcommittee recommends the authorization of a $15 million ESF
program for fiscal year 1994 for Cyprus. This amount is the same as the
administration's request and the same as that appropriated for the last several years.
The subconunittee welcomes the administration's decision to request fiscal year 1994
funding for this program that reflects the traditional congressional concern for the
Cypriot people and a demonstration of support for a p)eacef ul reunification of the
2. Since fiscal year 1975. the United States has provided some $325 million in
ESF assistance to Cyprus. This long-term commitment of suppwrt in which the
Congress has played and continues to play a crucial role is a cornerstone of United
States involvement on Cyprus. Most of these funds have been administered through
the United Nations High Commissioner for Refugees (UNHCR) which maintains an
office on Cyprus.
3. The subcommittee strongly supports the efforts of the United Nations
Secretary General to pursue negotiations to end the division of Cyprus. The United
States has a profound interest in assisting the people of Cyprus in their search for a
permanent and just settlement of their long-standing conflict. The subcommittee
notes that the newly-elected President of Cyprus. Glavcos Clerides. and
Turkish-Cypriot leader. Rauf Denktash. met in New York on May 24. 1993 to discuss
the terms of a Cyprus settlement. The subcommittee is hopeful that the decades-old
relationship of these two men will facilitate their work and help produce agreement
on a final settlement.
The subcommittee urges the parties to build on the progress achieved during
the term of the former Cypriot President George Vassiliou and further narrow their
differences. The subcommittee notes the assessment of the UN Secretary General
and UN Security Council 7S9. which implicitly blamed the Turkish Cypriots for the
impasse in the talks in the fall of 1992. The -subcommittee would like to see a more
cooperative approach from the Turkish Cypriots and urges the Turkish government
to begin to bring the full weight of its influence to bear on the Turkish Cypriots in
4. The subcommittee believes that progress toward a peaceful settlement on
Cyprus is only possible with an active, high level U.S. involvement. The
subcommittee urges the Administration to give priority to working with the parties
on Cyprus and with the UN to promote a peaceful settlement in Cyprus. The
subcommittee would like to see the Administration underscore this priority by
assuring that the State Department Special Cyprus Coordinator be able to devote
sufficient time to his assigned Cyprus-related tasks. The subcommittee notes that the
incumbent Special Coordinator, while a highly qualified foreign service officer, is
assigned to other significant negotiations work unrelated to Cyprus. The
subconunittee is concerned that these other responsibilities will hamper the
Coordinator's ability to devote necessary and sufficient time and energy to promoting
a peaceful settlement in Cyprus.
5. The subcommittee is concerned about the future of the UN Forces in Cyprus
(UNFICYP). For over 29 years, these forces have played an important stabilizing
role on the island. UNFICYP troops man some 140 observer posts along the green
line between the two parts of the island. This role could expand if and when a
settlement is reached. UN proposals envision the placement of UNFICYP troops in
the sensitive area of Varosha/Famagusta to enable the resettlement and opening of
this area to Greek Cypriots.
The subcommittee welcomes UN Security Council Resolution 831 (UNSCR 831)
of May 27 which moves the funding of UNFICYP away from voluntary
contributions and toward assessed contributions. This resolution requires that all
costs not met by voluntary contributions should be assessed to members under Article
17(2) of the UN Charter beginning with the next six-month extension of UNFICYP
on or before June 15. 1993.
The new funding arrangement promises a more certain future for UNFICYP's
important work. Since its creation. UNFICYP has been funded strictly by voluntary
contributions and is currently the only UN peacekeeping operation funded in that
manner. The subcommittee notes that the voluntary contribution system has proven
insufficient over a number of years to meeting the costs of troopncontributing states.
The subcommittee understands UNFICYP is approximately ten years behind in
payments to troop-contributing states. This funding gap prompted a number of
countries to withdraw their troops and others to threaten to do so. Sweden. Finland,
Canada and the United Kingdom have announced plans to withdraw some or all of
their troops from UNFICYP in 1993.
UNSCR 831 establishs a sound financial basis for UNFICYP, cutting the budget
from $95 million to $47 million to sustain a force of roughly 1.200 to 1.400 troops.
The U.S. assessment under the new system will be less than $9 million, its annual
voluntary contribution for the past several years. The subcommittee also commends
Cyprus and Greece for their willingness to supplement the assessed payments with
voluntary contributions of $18.5 million and $6.5 million, respectively.
With UNSCR 831. the Security Council also determines that it will undertake a
reassessment of all aspects of UNFICYP in December 1993. Because of cost-induced
withdrawals by troop-contributing countries, the size of UNFICYP has declined from
2.141 in May 1992 to 1.513 in March 1993. Recognizing the increasing demands for
UN peacekeeping forces around the world, the subcommittee nevertheless urges that
the UN Security Council ensure that the size and composition of UNFICYP remain
fully equal to its peacekeeping task.
6. The subcommittee continues to believe that bicommunal contacts between
individuals from both the Greek- and Turkish-Cypriot communities are vital and
central to increasing understanding and reducmg tensions on the island. The
subcommittee believes that it is important that U.S. programs on Cyprus focus on
bicommunal projects that help facilitate increased contacts and cooperative efforts
between members of the two communities. The subcommittee has been frustrated
over a number of years in the slowness with which meritorious projects in this area
have been identified and support has been obtained from the parties to fund
bicommunal projects. We continue to believe that the U.S. funds available for
Cvprus in each fiscal vear should be made available solely for scholarships and
7. In Public Law 99-83. Congress authorized, pursuant to a 1984 Presidential
initiative, a special Cyprus peace and reconstruction fund of up to $250 million.
President Reagan said at that time that this fund "would be requested at such time as
a fair and equitable solution acceptable to both parties on Cyprus is reached, or
substantial progress is made toward that end." TTie subcommittee reiterates its
support for that initiative as another demonstration of what the United States might
be able to do with other countries to help implement a Cyprus agreement in the
8. The subcommittee is pleased to note the instructions to all banks issued by
the Central Bank of Cyprus on April 26 implementing the terms of UN Security
Council Resolution 820. These instructions led to the freezing of some $450-5500
million in Serbian assets in three Serbian-controlled banks and 56 Serbian-controlled
companies. The subcommittee urges Cyprus to continue to take expeditious and
effective measures to implement provisions of UN Security Council Resolution No.
820 of April 17. 1993 to freeze all assets of the Federal Republic of Yugoslavia in
(In millions of dollars)
1. The subcommittee recommends the authorization of $90 million in concessional
military assistance and $1 million in IMET for Portugal in fiscal year 1994. This is the
administrations request. This represents a straightlinmg of aid levels for Portugal from
2. The subcommittee notes the imp)ortance of continuing security cooperation
between the U.S. and Portugal. Portugal is a loyal NATO ally and a long-time friend of
the United States. The 1983 U.S.-Portugal base agreement expired in February, 1991.
Negotiations between the United States and Portugal on renewal of this agreement have
been taking place since January 1991. These negotiations were on hold for much of 1992
during the election period in both countries. The subcommittee expresses its desire to see
these negotiations resolved to the mutual satisfaction of the United States and Portugal at
the earliest possible occasion.
The subcommittee strongly supports the negotiation of a new base agreement that
will take into account the significant changes in the US-Portuguese relationship that have
taken place since the first accord was concluded in 1951. The subcommittee hopes a new
agreement will lay the foundation for a broader relationship between our two countries.
The subcommittee urges the administration to work with the Government of Portugal to
move U.S.-Portuguese relations away from the traditional bases-for-rent formula and on
to a more equal footing along the lines of the model set by Spain. The subcommittee
recognizes that significant progress has already been made in this direction in recent years
and hop>es that this trend will continue and be reflected in the final base agreement
between our two countries.
The subcommittee expresses its expectation that in the context cf a new base
agreement the U.S. and Portugal will negotiate a series of bilateral agreements to cover
continued cooperation in areas such as science and technology, narcotics, anti-terrorism
efforts, and cultural cooperation.
3. The Subcommittee strongly supports the work of the Luso-American
Development Foundation (LADF5. but believes several important changes are necessary to
further streamline and tighten its operations. First, the LADF should conduct thorough
program reviews of grants awarded, to determine whether such grants have achieved their
purpose. Second, the LADF should have outside consultants conduct a thorough review of
management practices, to determine whether LADF overhead and personnel expenditures
have been excessive. The LADF should implement the recommendations of such a review.
Third, the LADF should place far greater emphasis in its work on transatlantic
educational exchanges. Fourth, the LADF should focus exclusively on building
U.S.-Portuguese ties, and not have its resources and attention diverted to third countries
or purposes. Fifth, the LADF should not engage in private sector development or business
activities, since such activities are far better carried out by the private sector, or via the
substantial financial support provided to Portugal since 1986 by the European
4. The subcommittee continues to support the eligibility of Portugal for U.S. excess
defense equipment under Section 516 of the Foreign Asisistance Act of 1961. as amended.
This equipment represents an important increment to Portuguese military forces.
IRELAND AND NORTHERN IRELAND
(In millions of dollars)
1. The subcommittee recommends an authorization of $20 million for the
International Fund for Ireland and Northern Ireland (IFI) for fiscal year 1994. The
subcommittee notes that in recent years there has been no administration request for IFI.
The subcommittee welcomes the administration's request for IFI funding for fiscal year
1994. The subcommittee continues to believe that a continued U.S. contribution to the
Fund is merited and remains an important tangible demonstration of U.S. support for a
reconciliation in Northern Ireland.
2. Since fiscal year 1986, the United States has provided $210 million to the Fund. It
is the subcommittee's understanding that the original U.S. commitment to the Fund was
for a five-year $250 million program. At this time, the subcommittee continues to supfx)rt
this multi-year commitment. This support remains contingent on continued progress on
the part of the Fund in advancing the objectives laid out in the original Congressional
authorization legislation regarding the IFI.
3. The subcommittee is pleased to note that since its inception the IFI has reportedly
created 18.770 direct jobs in Northern Ireland and Ireland. The subcommittee also
welcomes the progress that the Fund has made in addressing the needs of the most
disadvantaged areas. As a result of the Disadvantaged Areas Initiative, in excess of 70
percent of all the Fund's commitments to date - including over 80 percent in 1992 - have
been devoted to the most disadvantaged areas in Northern Ireland and Ireland. The
subcommittee is very suppxjrtive of this initiative and hopes to see this trend continue in
the future. The objective of this initiative is consistent with the goals of the Anglo-Irish
agreement as stated in Article 10 of the agreement which provides that the Fund is meant
to "promote those areas of txsth parts of Ireland which have suffered most severely from
the consequences of the instability of recent years."
4. In its support for the International Fund, the subcommittee also expresses the
continuing concern of many Americans about the status of the Catholic minority in
Northern Ireland. While more Catholics are in public sector jobs, on local councils and in
the legal profession today than ever before, more progress is needed, particularly in the
private sector, to eliminate job discrimination in Northern Ireland. Traditional
employment practices have reinforced the effects of discrimination and. in some cases,
individuals from the Catholic community have been reluctant to apply to companies
which they see to be dominated by the other. In smaller companies, there has been little
progress in overcoming the tendency to employ people on the basis of relationship to the
owner, senior staff or other employees. These factors have consistently worked to the
disadvantage of the Catholic community.
The subcommittee notes that a wide-ranging review of employment equality in
Northern Ireland - which would include a review of the effectiveness of the Fair -
Employment Legislation — is to be carried out in 1995. Work on this has already
commenced with the publication in October, 1992 of the review strategy. The
subcommittee looks forward to receiving the published outcome of this review which is
meant to recommend further action necessary to accelerate progress towards achieving
The subcommittee places high priority on the need to make further progress in
eliminating the disparity in Catholic and Protestant unemployment in Northern Ireland.
UNITED ST ATES FOREIGN ASSISTANCE TO
THE MIDDLE EAST
WEDNESDAY, APRIL 28, 1993
House of REPRESE^^^ATIVES,
Committee on Foreign Affairs,
Subcommittee on Europe and the Middle East,
The subcommittee met, pursuant to call, at 9:38 a.m., in room
2172, Rayburn House Office Building, Hon. Lee H. Hamilton
Mr. Hamilton. The subcommittee will come to order. The Sub-
committee on Europe and the Middle East meets today in open ses-
sion to review the administration's fiscal year 1994 foreign assist-
ance request. This is the first hearing that the subcommittee will
hold on U.S. assistance to countries in the subcommittee's jurisdic-
We will focus today on Israel, Egypt, the West Bank and Gaza,
Jordan, Lebanon, and some of the smaller programs in Oman,
Yemen, and Middle East Regional Cooperation.
The administration's request for the Middle East for fiscal year
1994 is $5,172 billion. That includes $3 billion in economic and
military assistance for Israel, $2.1 billion in economic and military
assistance for Egypt, $25 million for U.S. programs in the West
Bank and Gaza, $24 million in economic and military assistance for
Jordan, $4 million in economic assistance for Lebanon, $5 million
for a new multilateral peace process fiind, and $7 million for Mid-
dle East regional programs.
Our witnesses today are the Honorable Edward P. Djerejian, As-
sistant Secretary of State for Near East Affairs. I understand he
will be a little late because of other appointments. We expect him
around 10 o'clock; the Honorable Dennis M. Chandler, Acting As-
sistant Administrator for the Near East Bureau of the Agency for
International Development; and the Honorable Fred Smith, Acting
Deputy Assistant Secretary of Defense for Near East and South
We are very pleased, of course, to have our witnesses with us
this morning. Their prepared statements, if they have one, will be
entered into the record in full. We have a lot of ground to cover,
so we will ask you to make very brief opening statements before
we turn to questions.
We will proceed with your testimony first, Mr. Chandler, and
then Mr. Smith.
Do any of my colleagues here have any comments? If not, Mr.
Chandler, you may proceed.
STATEMENT OF DENNIS M. CHANDLER, ACTING ASSISTANT
ADMINISTRATOR FOR THE NEAR EAST BUREAU, AGENCY
FOR INTERNATIONAL DEVELOPMENT
Mr. Chantdler. Thank you, Mr. Chairman, members of the sub-
committee. I am pleased to be here this morning. This is my first
opportunity to testify before this committee.
I would like to have a longer statement submitted for the record.
Copies have been made available to your subcommittee staff. I
would like to touch upon a few points, and then I would certainly
be agreeable to answer any and all questions.
The U.S. Agency for International Development provides assist-
ance to the countries of the Near East. The Near East, as we define
it, are the countries of Israel, Egypt, Jordan, Lebanon, Oman, West
Bank and Gaza, Yemen, and certain re^onal activities. We also
provide assistance to Morocco and Tunisia, but I understand that
is the responsibility of another subcommittee.