Numbers & Notables
***November 2004***

Dear Friends:

Thank you, again, for following closely my activities in the United States Senate and as Chairman of the Foreign Relations Committee.

During November, President Bush asked me to represent him in the November 21 run-off election in Ukraine to underscore the importance of the future of Ukraine and of free and fair elections.

I also deeply appreciated the honor of receiving the 2004 Bishop John T. Walker Distinguished Humanitarian Service Award on November 5 in the presence of Secretary of State Colin Powell and many distinguished Hoosiers.

In the Senate, I was excited to introduce new Nunn-Lugar legislation in addition to S.1734, the “Prevent Prematurity and Improve Child Health Act” and was pleased by the passage of the Dutch Tax Treaty.

I hope that you enjoy reading the accounts of some of my recent experiences. Please stay closely in touch.

Sincerely,

Richard G. Lugar
United States Senator

Lugar Represents President Bush in Ukraine for Elections

President George W. Bush asked Senator Lugar to represent him in Ukraine for the November 21, 2004 run-off election between Prime Minister Viktor Yanukovich and the opposition candidate, Viktor Yushchenko. In August 2001, Lugar went to Ukraine at the request of President Bush to be the official representative of United States at the 10th anniversary of Ukrainian independence.

In a press conference after witnessing the elections in Kiev, Ukraine, on November 22, Senator Lugar gave the following statement:

"I have been honored to serve as President George Bush’s representative during the November 21st run-off election in Ukraine.

"As I approached that responsibility, I noted that the campaign had already been marked by widespread political intimidation and failure to give equal coverage to candidates in the media. Physical intimidation of voters and illegal use of governmental administrative and legal authorities had been evident and pervasive.

"I have come not as an advocate of either candidate in the November 21 election, but to stress free and fair election procedures that would strengthen worldwide respect for the legitimacy of the winning candidate.

"OSCE/ODIHR and other observers mention an extensive list of serious procedural violations including:

• Illegal expulsions of opposition members of election commissions;
• Inaccurate voter lists;
• Evidence of students, government employees and private sector workers being forced by their deans and supervisors to vote for one candidate over another;
• Busloads of people voting more than once with absentee ballots;
• Representatives of the media being beaten and their equipment stolen or destroyed; and
• Suspiciously large use of mobile voting.

"Even in the face of these attempts to end any hope of a free and fair election, I was inspired by the willingness and courage of so many citizens of Ukraine to demonstrate their passion for free expression and the building of a truly democratic Ukraine. As corrupt authorities tried to disrupt, frighten and intimidate citizens, brave people pushed back by continuing to do their best to keep the election on track and to prevent chaos.

"President Leonid Kuchma in his Saturday night address to the people said: 'There will be no revolutions. We shall have elections. Elections worthy of a 21st century European country.'

"President Bush wrote in a letter which I carried to President Kuchma: 'You play a central role in ensuring that Ukraine’s election is democratic and free of fraud and manipulation. A tarnished election, however, will lead us to review our relations with Ukraine.'

"In thoughtful and careful representation of President Bush’s words, I visited with President Kuchma, Prime Minister Yanukovich and Speaker Lytvyn with explicit requests for them to terminate any further campaign violations. Despite the already recorded long list of egregious assaults on democracy in Ukraine, I said both publicly and privately that I had come to celebrate the building of strong democratic institutions in Ukraine.

"It is now apparent that a concerted and forceful program of election day fraud and abuse was enacted with either the leadership or cooperation of governmental authorities.

"I believe that President Kuchma has the responsibility and the opportunity for producing even at this point an outcome which is fair and responsible. He will enhance his legacy by prompt and decisive action which maximizes worldwide confidence in the presidency of Ukraine and the extraordinary potential future which lies ahead of this country."

Lugar Receives Bishop John T. Walker Distinguished Humanitarian Service Award from Africare

U.S. Senate Foreign Relations Committee Chairman Dick Lugar was presented the 2004 Bishop John T. Walker Distinguished Humanitarian Service Award on Friday, November 5, at the Africare Bishop Walker Dinner in Washington, D.C. for his service to international issues.

"The work of Africare has exemplified the commitment, creativity, and optimism that is required if we are to engage Africa as a full partner in the international community,” said Lugar. “It is a special honor to receive an award that commemorates Bishop Walker, who brought so many people together in the service of justice and humanitarianism."

Founded in 1970, Africare is the oldest and largest African-American organization focused exclusively on African aid. Its programs focus principally on food security and agriculture as well as health and HIV/AIDS. Each year since 1992, Africare has recognized individuals for their distinguished service to Africa and to world development as well as their embodiment of the principles of peace, justice and multiracial harmony.

Lugar was recognized for his leadership in securing passage of the Anti-Apartheid Act in 1986 and his authorship of the original African Growth and Opportunity Act (AGOA). He has been the Senate sponsor of the Global HIV/AIDS Initiative and recently introduced legislation to provide assistance for orphans and vulnerable children in regions affected by the HIV/AIDS pandemic. His efforts to rid the world of weapons of mass destruction through the Nunn-Lugar Cooperative Threat Reduction Program were also acknowledged.

Lugar Notified of $1.4 million for
Education Initiative in Indiana

U.S. Sen. Dick Lugar’s office was notified that Success For All, a research-based reading program designed to improve student performance, has received $1,400,000 for Indiana schools as part of the recently approved Omnibus Appropriations bill. Lugar worked with Congressional appropriators to include the funding in the bill.

The funding will allow the Success for All Foundation to partner with the Indiana Department of Education, Indianapolis Public Schools, and other high poverty school systems yet to be identified and develop targeted interventions to turn around low-performing elementary and middle schools in Indiana identified under the No Child Left Behind Act of 2001.

Lugar, who began his public career as an Indianapolis Board of School Commission member, has been a long-time advocate of education initiatives, including Success for All, Title I funding for the disadvantaged, the school lunch program and the federal Comprehensive School Reform (CSR) program. In March, Lugar visited Fredrick Douglass Middle School in Indianapolis, which is using CSR funds, as well as Title I, to offer Success for All. The program is run school wide.

Lugar has noted that, "In Indiana, as many as a third of students fall behind by the third grade. Indiana’s performance is not unusual – the entire country is failing to meet the challenge of educating all our children. By teaching children to read in the early grades, our schools can avoid holding them back, promoting them with insufficient ability or transferring them out of the normal curriculum to special education courses.

"Research-based comprehensive reform is inherently appealing because rather than implementing reform in a piecemeal basis, this approach provides a holistic and coordinated plan of action to improve student achievement and outcomes."

Lugar has been a strong proponent of the program since 1999, when he first learned about its achievements. Success for All provides a proven and complete curriculum that includes teaching materials as well as professional development and parental outreach. Teachers who participate in Success for All say it ties the school community together in their learning. Teachers know exactly what is being taught to their students and to students in other classes and other grades. Students learn to work together in small groups and are excited to do so.

The Success for All Foundation (SFAF) is a nonprofit (501c3) organization that develops and disseminates scientifically research-based programs for high-poverty schools from prekindergarten to middle school. SFAF seeks to address the current achievement gaps in Indiana by taking their standard research based curriculum a step further and fully aligning it to state standards. Success For All would provide predictive benchmark assessments throughout the school year to allow ongoing tracking of student achievement against the state high-stakes test. It would then provide the curriculum to target specific problem areas.

Lugar Statements on Secretary of State Colin Powell and the Nomination of Dr. Condoleezza Rice

Statement on Secretary of State Colin Powell

Statement on Dr. Condoleezza Rice

Lugar Introduces New Nunn-Lugar Legislation

U.S. Senate Foreign Relations Committee Chairman Dick Lugar introduced legislation to strengthen U.S. nonproliferation efforts.

The Nunn-Lugar Cooperative Threat Reduction Act of 2004 would underscore the bipartisan consensus on Nunn-Lugar by streamlining and accelerating Nunn-Lugar implementation and grant more flexibility to the President and the Secretary of Defense to undertake nonproliferation projects outside the former Soviet Union. It also would eliminate congressionally-imposed conditions on Nunn-Lugar assistance that in the past have forced the suspension of time-sensitive nonproliferation projects. The purpose of the bill is to reduce bureaucratic red tape and friction within our government that hinder effective responses to nonproliferation opportunities and emergencies.

"In August, I visited Albania, which had appealed for help in destroying 16 tons of chemical agent left over from the Cold War. Nunn-Lugar officials are working closely with Albanian leaders to destroy this dangerous stockpile," Lugar said. "But the experience also is illustrative of the need to reduce bureaucratic delays. The package of documents to be reviewed by the President took some 11 weeks to be finalized and readied for President Bush. From beginning to end, the bureaucratic process to authorize dismantlement of chemical weapons in Albania took more than three months. Fortunately, the situation in Albania was not a crisis, but we may not be able to afford these timelines in future nonproliferation emergencies."

Lugar also introduced The Conventional Arms Threat Reduction Act of 2004, or CATRA, which is modeled on the original Nunn-Lugar Act. Its purpose is to provide the Department of State with a focused response to the threat posed by vulnerable stockpiles of conventional weapons around the world, including tactical missiles and man portable air defense systems, or MANPADS. Such missile systems could be used by terrorists to attack commercial airliners, military installations and government facilities here at home and abroad. Reports suggest that Al Qaeda has attempted to acquire these kinds of weapons. In addition, unsecured conventional weapons stockpiles are a major obstacle to peace, reconstruction and economic development in regions suffering from instability.

This bill declares it to be the policy of the United States to seek out surplus and unguarded stocks of conventional armaments, including small arms and light weapons, and tactical missile systems for elimination or safeguarding. It authorizes the Department of State to carry out an accelerated global effort to destroy such weapons and to cooperate with allies and international organizations when possible. The Secretary of State is charged with devising a strategy for prioritizing, on a country-by-country basis, the obligation of funds in a global program of conventional arms elimination. Lastly, the Secretary is required to unify program planning, coordination and implementation of the strategy into one office at the State Department and to request a budget commensurate with the risk posed by these weapons.

"Too often, conventional weapons are inadequately stored and protected. This presents grave risk to American military bases, embassy compounds, and even targets within the United States. We must develop a response that is commensurate with the threat," Lugar said. "The Department of State has been working to address the threats posed by conventional weapons. But in my judgment, the current funding allocation and organizational structure are not up to the task. Only about $6 million was devoted to securing small arms and light weapons during the two-year period that covered FY 2003 and FY 2004. We need more focus on this problem and more funding to take advantage of opportunities to secure vulnerable stockpiles."

In 1991, Senator Lugar (R-IN) and former Senator Sam Nunn (D-GA) authored the Nunn-Lugar Act, which established the Cooperative Threat Reduction Program. This program has provided U.S. funding and expertise to help the former Soviet Union safeguard and dismantle their enormous stockpiles of nuclear, chemical and biological weapons, means of delivery and related materials. In 1997, Lugar and Nunn were joined by Senator Domenici (R-NM) in introducing the Defense Against Weapons of Mass Destruction Act, which expanded Nunn-Lugar authorities in the former Soviet Union and provided WMD expertise to first responders in American cities. In 2003, Congress adopted the Nunn-Lugar Expansion Act, which authorized the Nunn-Lugar program to operate outside the former Soviet Union to address proliferation threats. The bills Lugar introduced today would strengthen the Nunn-Lugar program and other nonproliferation efforts and provide greater flexibility to address emerging threats.

The 9/11 Commission weighed in with an important endorsement of the Nunn-Lugar program, saying, "Preventing the proliferation of [weapons of mass destruction] warrants a maximum effort—by strengthening counter-proliferation efforts, expanding the Proliferation Security Initiative and supporting the Cooperative Threat Reduction Program." The Report went on to say that "Nunn-Lugar … is now in need of expansion, improvement and resources."

Legislative Update

Prematurity Awareness

Lugar recently introduced S. 1734, the "Prevent Prematurity and Improve Child Health Act," which seeks to improve Medicaid and the State Children’s Health Insurance Program to better reflect our current state of knowledge on preterm birth.

For example, medical research reports that smoking is a considerable risk factor for preterm and low birthweight infants. This bill takes these risks into account and translates them into practice by ensuring that smoking cessation services and pharmaceuticals are available for pregnant women enrolled in Medicaid.

"The rise in premature births throughout the country and in my own state—despite all of our achievements in medicine—is astounding," Lugar acknowledged. "Reducing the number of premature births will improve the health of hundreds of thousands of infants born each year."

Nationally, more than 480,000 babies were born preterm in 2002. Nearly 13 percent of Indiana’s infants are born preterm and in half of the cases, doctors cannot identify the cause. Prematurity is the leading cause of infant death in the first month of life. Many of these infants will suffer lifelong health problems—such as cerebral palsy, mental retardation, chronic lung disease, and vision and hearing loss—and some will die.

Aside from these human costs, the financial cost of caring for preterm infants is enormous. The March of Dimes estimates that the national hospital bill for infants with a diagnosis of prematurity/low birthweight was $13.6 billion in 2001.

Lugar Applauds Passage of Dutch Tax Treaty

U.S. Senate Foreign Relations Committee Chairman Dick Lugar announced that the U.S. Senate has approved the Protocol amending the existing Tax Treaty with the Netherlands. The treaty was passed by unanimous consent on Wednesday, November 17, in spite of repeated legislative hurdles since the committee’s hearing held on September 24.

"This Protocol will bolster the economic relationships between the United States and a country that is already a good friend and critical trade and investment partner," said Lugar (R-IN). "As the United States considers how to create jobs and maintain economic growth, it is important that we try to eliminate impediments that prevent our companies from fully accessing international markets. These impediments may come in the form of regulatory barriers, taxes, tariffs, or unfair treatment. In the case of taxes, we should work to ensure that companies pay their fair share, while not being unfairly taxed twice on the same revenue. Tax treaties are intended to prevent double taxation so that companies are not inhibited from doing business overseas.

"This Protocol will send a positive message to keep growing the investment in the U.S. The Organization for International Investment, comprised of U.S. subsidiaries of foreign headquartered companies, or those that “insource” to the U.S., indicates this will significantly encourage its members to expand their U.S. operations contributing to domestic growth and creating jobs here in the U.S.

"As Chairman of the Senate Foreign Relations Committee, I am committed to moving tax treaties as expeditiously as possible. Last year, the Committee and the full Senate approved treaties with Mexico, Australia and the United Kingdom. Earlier this year, we finalized treaties with Japan and Sri Lanka. I encourage the Bush Administration to continue its successful pursuit of treaties that strengthen the American economy by providing incentives for foreign companies to expand their operations in the U.S. I will continue to do my part to see that these agreements receive the advice and consent of the Senate for enactment on a timely basis."

Since assuming the chairmanship in 2002, Lugar has guided the passage of six tax treaties through the Senate Foreign Relations Committee and United States Senate including the historic U.S.-Japan Tax Treaty. In order to encourage timely passage of the treaty so that benefits would be realized to American companies already this year, Lugar wrote the Japanese Finance Minister and leaders of the Diet. U.S. Ambassador Howard Baker and Japan’s Senior Vice Minister Aisawa of the Ministry of Foreign Affairs signed the Tax Treaty and then exchanged instruments of ratification, on March 30, a day before the deadline. Japan is the fourth largest source of imports to the U.S. and the third largest export market for U.S. goods.