Thank you, Mr. Chairman.  Before I turn to the recommendation, I would like to take a moment to note that this is the last regular appropriation bill I will bring to the Committee.  As with nearly every product of my subcommittee over the last six years, the proposal before you today is the product of bi-partisan cooperation, something I could not have done without the support and cooperation of my esteemed ranking member, Mrs. Lowey, my vice chairman, Mr. Sherwood, and every member of the subcommittee.  It has truly been an honor working with all of you these last six years.

 

I am proud of this product.  But I can also honestly say it has been the most difficult one I have put together.  The recommendation before you totals $21.3 billion, while $597 million above the amount provided in fiscal year 2006, not counting supplementals, it is fully $2.4 billion below the President’s request. 

 

We may hear today that more priorities could have been met had we been given a larger allocation.  While I sympathize – after all, one of my top priorities, the Millennium Challenge Corporation, is cut by 33 percent in this recommendation – I believe that our allocation was fair.  To provide this subcommittee with the President’s requested increase for foreign operations would have come at the cost of domestic priorities. The subcommittee recommendation frees up $2.4 billion for use here in the United States, and it does so in a fair, bipartisan manner.

 

It provides responsible increases for three Administration and Committee priorities – the War on Terror, the Millennium Challenge Corporation, and international health spending – priorities which lie at the core of United States interests abroad.

 

For the War on Terror, this recommendation includes $962.3 million for Afghanistan, $137 million below the President’s request and $85 million over fiscal year 2006.  It continues a provision that withholds $385 million until the Afghanistan government, both at the national and local levels, fully cooperates with our efforts against narcotics production and trafficking.  Conferees should not countenance unconditioned support for a government unwilling to take difficult but necessary steps to fight this scourge against humanity, no matter how much we support it otherwise.

 

The recommendation also includes $521.9 million for Iraq.  While this is $226.8 million below the President’s request, it represents an increase of $461 million over fiscal year 2006.  Last year we required the Administration to fund Iraq programs from unexpended relief and reconstruction funds.  However, these funds are nearly all expended.  It was a priority in this bill to normalize Iraq and Afghanistan assistance programs, moving them away from emergency supplementals that exceed budgetary limitations.

 

The recommendation contains no funding in the Economic Support Fund for West Bank and Gaza programs, although the President requested $150 million for this purpose.  The request was made before Hamas was elected to lead the Palestinian Authority, and it was mostly for infrastructure programs.  I feel strongly that humanitarian assistance must continue to the Palestinian people – a view, I might add, that is shared by the Israeli government and the Administration.  Humanitarian and pro-democracy funding does continue in this recommendation with the usual restrictions and safeguards.

 

For international health, we have added $751.6 million for HIV/AIDS and tuberculosis, while maintaining last year’s funding levels for other health programs.  Our bill contains a total of $3.4 billion for the Emergency Plan for AIDS Relief, the same as the President’s request.  However, within this amount we more than double the President’s request for a contribution to the Global Fund to Fight AIDS, Tuberculosis, and Malaria to attain last year’s level, $444.5 million.  We also recommend increasing expenditures on malaria programs to $243 million, including nearly $80 million more for USAID’s malaria activities.

 

The recommendation also includes $2 billion for the Millennium Challenge Corporation.  This represents a $1 billion reduction from the request, but is $248 million above fiscal year 2006.  This was a difficult decision for me, but I saw no way to bring a bill to this Committee that gave the full request for the MCC.  My goal was simple:  I wanted to send a clear message that Congress supports the MCC’s innovative, accountable, approach to help countries move away from reliance on donor funding.  I think a $248 million increase sends that message, while freeing funds above that level to help attain a fiscally sound bill that can have bi-partisan support.

 

The bill before you contains two important initiatives.  First, it includes a new “Trade Capacity Enhancement Fund” which consolidates trade capacity funding from a variety of accounts, such as regional accounts for the former Soviet Union and Eastern Europe, and Development Assistance.  This new account includes $522 million, virtually all of what is spent for trade capacity by agencies and accounts under our subcommittee’s jurisdiction, and about half of the $1.3 billion which is spent government-wide.  Since we will now require a coherent strategy for the use of these funds, it is my hope – and my belief – that this new account will provide a strong incentive for countries to liberalize their trade regimes.

 

This recommendation also restructures assistance to Colombia, formerly provided only through the “Andean Counterdrug Initiative,” or ACI.  I want to be very clear about one point:  this recommendation does NOT cut funding from the President’s request for Colombia; it simply reallocates funds to regular assistance accounts and begins to treat Colombia as we treat other strategic partners.

 

I have believed for some time that Colombia’s progress in the war on drugs has been exemplary.  They are now bringing guerilla forces in from the jungle, prosecuting those who are implicated in serious crimes, and reintegrating the others into society.  Coca interdiction continues to improve.  I consulted with Speaker Hastert, who years ago, was the author of the ACI, about this reformulation of assistance.  This proposal has his support.  The Colombian government also supports this move.  It is time to move away from treating Colombia as a narcostate and begin to recognize both their successes and their strategic importance to the region.

 

Finally, this recommendation includes the President’s full request for Israel and Egypt, our two long-standing partners in the Middle East.   Report language from previous years is continued directing $50 million of Egypt Economic Support Fund assistance to be used for democracy and another $50 million for education.  Other language, again the same as last year, would withhold expenditures until Egypt implements financial sector reforms.  Importantly, this recommendation would also rescind $200 million from unexpended balances made available for Egypt in previous years.  I will further explain my intentions on this matter in a moment when I present an amendment to the report.

 

In closing, let me say again that it has been a pleasure working with Ms. Lowey and the minority staff, Beth Tritter and Nisha Desai.  And I cannot neglect mention of the fine work of the majority staff – Betsy Phillips, Rob Blair, Craig Higgins, Delia Scott, and Lori Maes; and Todd Calogne, a USAID fellow on my personal staff.  They are all competent, professional, and a joy to work with.  The work that we have accomplished together has helped make America more secure, and has improved the lives of millions throughout the world.  Mr. Chairman, members of the Committee, I am pleased to submit this recommendation, and urge your favorable consideration.