The Foreign Operations Appropriations Bill for FY 2002

Statement on U.S. assistance to FR Yugoslavia

While I support many provisions in the bill, I am nonetheless concerned that the same conditions on U.S. assistance to the Federal Republic of Yugoslavia that were crafted in October 2000, just weeks after the change of government, appear in the bill one year later. It is my feeling that placing the same conditions on U.S. assistance to FRY now may send the wrong message to the country's reformers. While we should continue to encourage progress in the FRY, I believe placing the same three conditions on U.S. aid to the country year after year could be counterproductive..

By SENATOR GEORGE V. VOINOVICH

COLLOQUY ON MONTENEGRO SENATE CONSIDERATION OF FOREIGN OPERATIONS APPROPRIATIONS ACT FOR FISCAL YEAR 2002 - OCTOBER 24, 2001
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Mr. VOINOVICH: Mr. President, as the Senate considers the Foreign Operations Appropriations Act for fiscal year 2002, I would like to take a few minutes to address U.S. assistance to the Federal Republic of Yugoslavia.

As many of my colleagues are aware, I have taken a strong interest in issues affecting Southeast Europe during my time in the Senate. I have made many trips to the region, most recently in December of 2000 with my friend from Pennsylvania Senator Arlen Specter, and I continue to meet with the region's political, spiritual and community leaders both in the United States and during time abroad.

I have long recognized the destabilizing influence that men such as Slobodan Milosevic have had on the region and the broader European community. The international community witnessed the devastating influence of this so-called leader during years of violent conflict in the former Yugoslavia, and we continue to see evidence of its affects in Kosovo and other parts of the region.

While the Balkans have not been without recent challenges, as demonstrated by the situation in Macedonia and continued violence and destruction in Kosovo and parts of Bosnia-Herzegovina, significant changes have taken place in this part of the world during the past year and a half. The death of Franjo Tudjman in Croatia in December of 1999 and the ouster of the Milosevic regime in October of 2000 have removed major obstacles to positive change in the region.

One year ago this month, I watched with tremendous gratification when the people of the Federal Republic of Yugoslavia went to the polls --- and then to the streets --- to demonstrate their support of democracy and their denouncement of Milosevic.

Since my days as Mayor of Cleveland and Governor of the State of Ohio, I have been an ardent supporter of democratic reformers in Serbia. I have long admired the courage and determination of many individuals who remained focused on a democratic future for Serbia, whatever the odds, such as members of the OTPOR student movement.

When I met with a group of these young leaders following the election of President Vojislav Kostunica and the removal of Milosevic from power, they told me that the feat we witnessed last October would not have been possible without the support and influence of the United States.

Just a few weeks ago in my office in the Hart building, I met with one of the founders of the OTPOR student movement, who is now a member of the Serbian Parliament. Once focused on removing Milosevic from power, he is now intent on helping the government to strengthen its democratic institutions so that the FRY may better position itself among Europe's new democracies. Without a doubt, the Federal Republic of Yugoslavia is a different place today than it was one year ago.

When the Senate considered the Foreign Operations Bill last year, we conditioned U.S. assistance to Serbia after March 31, 2001 on three conditions. In order to receive continued non-humanitarian assistance, the United States had to certify that the Federal Republic of Yugoslavia was doing the following: first, cooperating with the War Crimes Tribunal for the Former Yugoslavia; next, taking steps to implement the Dayton Accords; and finally, taking steps to implement policies reflecting the rule of law and respect for human rights.

Given the importance of a democratic and stable government in the FRY to the broader region and Europe as a whole, I was pleased that the new government was, in fact, making significant progress in the areas outlined in the Foreign Operations Appropriations Act for fiscal year 2001, thus allowing President Bush and the Secretary of State to grant certification and allow non-humanitarian U.S. assistance to the FRY to continue following the March 31st deadline.

Additionally, the FRY's progress facilitated help from the World Bank and the International Monetary Fund, and the international community pledged more than $1.2 billion for the country during a donors' conference sponsored by the World Bank at the end of June. Most recently, we have seen positive developments in the FRY's negotiations with the Paris Club to reschedule a portion of its debt.

The reformers took important action in each of the three areas. Regarding cooperation with the War Crimes Tribunal for the Former Yugoslavia, we all remember the dramatic scenes on television during the days before Slobodan Milosevic was transferred to The Hague in the middle of the night. It was a courageous and necessary step, and I am pleased that the government understood the necessity of doing so.

In efforts to implement policies reflecting the rule of law and respect for human rights, perhaps the most significant accomplishment demonstrating the government's actions involved its work with the international community to successfully resolve the situation in southern Serbia, without significant international incident. In line with the Dayton Agreement, the FRY has reduced its military to military ties with the Republika Srpska, and it has indicated its commitment to eliminate remaining ties and ensure transparency of any dealings it might have with the Republika Srpska in the future.

While we acknowledge the positive things that have taken place during the past twelve months, we must also recognize the reality that there is still work that remains to be done. Of highest priority is the release of ethnic Albanian prisoners who continue to remain incarcerated in Serbian jails. Moreover, it is critical that the government further its cooperation with The Hague War Crimes Tribunal. Certainly the transfer of Milosevic was highly important; at the same time, other indicated war criminals remain at large in the FRY, and every effort should be made to work with The Hague Tribunal to rid the country of those responsible for past atrocities.

That being said, as the Federal Republic of Yugoslavia joins the ranks of southeast Europe's new democracies, I believe it is important that we begin to look beyond the conditions outlined in the Foreign Operations Appropriations Bill for fiscal year 2001, and work to create an assistance program for the FRY that is in line with our aid programs to other countries in the region.

Last October, when House and Senate conferees considered the final version of the fiscal year 2001 Foreign Operations spending bill, Vojislav Kostunica had been in office just a few short weeks. The status of Milosevic was widely unknown. Given the nascent state of the new government at that time, I believe including language allowing the United States flexibility in its assistance program to the FRY, should the new government have moved in a direction contrary to U.S. interests, was a reasonable thing to do.

However, in the year following final consideration of last year's Foreign Operations Appropriations Bill, I believe the reformers in the FRY have developed a positive - though not perfect - track record. While it is clear that additional steps must be taken to further cooperation with The Hague and implementation of the rule of law, I believe we have solid evidence that the new government is committed to moving forward with reforms. If they fail to make the progress they have promised, we have many avenues from which to demonstrate our displeasure.

As my colleagues are aware, the State Department must notify Congress before distributing U.S. funds abroad. At that time, our Foreign Relations Committee or Foreign Operations Subcommittee can withhold assistance to any country abroad. Additionally, we may instruct U.S. representatives to international organizations such as the World Bank and the International Monetary Fund to withhold their support for programs benefitting the FRY. Finally, if the Federal Republic of Yugoslavia does not act in accordance with actions deemed to be in their best interests by the United States and other members of the international community, there is no doubt in my mind that future U.S. support will be terminated.

I appreciate the work that my colleagues on the Foreign Operations Subcommittee have done in preparing the Foreign Operations Appropriations Act for fiscal year 2002. I recognize their efforts to send a positive message to reformers in the Federal Republic of Yugoslavia by increasing the level of assistance to Serbia to $115 million for fiscal year 2002, which is $15 million above the fiscal year 2001 level, and providing $45 million for Montenegro.

Further, the Committee has included language in its report applauding the work that has been done by reformers in the FRY during the past year. I also strongly support my colleagues' decision to provide $28 million toward debt relief for the FRY, and I was pleased to join Senator Leahy and Senator McConnell as a cosponsor of an amendment authorizing that authority.

While I support many provisions in the bill, I am nonetheless concerned that the same conditions on U.S. assistance to the Federal Republic of Yugoslavia that were crafted in October 2000, just weeks after the change of government, appear in the bill one year later. It is my feeling that placing the same conditions on U.S. assistance to FRY now may send the wrong message to the country's reformers. While we should continue to encourage progress in the FRY, I believe placing the same three conditions on U.S. aid to the country year after year could be counterproductive.

I will continue to work with my colleagues on the Foreign Operations Subcommittee and the Foreign Relations Committee during the next year regarding developments in the Federal Republic of Yugoslavia as our aid program to the country evolves, with the hope that we will be able to move beyond conditionality in years to come.

While it is important for the United States to understand progress that is made in the FRY, it is also imperative that the leaders of the FRY understand that the actions they take on the three areas outlined in the Foreign Operations Appropriations Act for FY2001 will have a dramatic impact on whether or not the conditions are included in next year's bill.

Thank you, Mr. President. I yield the floor.

COLLOQUY ON MONTENEGRO SENATE CONSIDERATION OF FOREIGN OPERATIONS APPROPRIATIONS ACT FOR FISCAL YEAR 2002 - OCTOBER 24, 2001

Mr. VOINOVICH. Madam President, as the Senate considers the Foreign Operations Appropriations bill for fiscal year 2002, I would like to take this opportunity to discuss discrepancies between the House and Senate versions regarding funding for the Federal Republic of Yugoslavia (FRY).

I have strong reservations about certain language included by the House Appropriations Committee in its report accompanying H.R. 2506. In its report, the House Committee recommends $145 million in funding for the FRY, of which $60 million is to be provided to Montenegro. I support at least $145 million for the FRY, which is the amount requested by the President. However, if the House funding level stands for Montenegro, with a population of just 600,000 people, which is one-thirteenth the size of Serbia, it would receive more than 40 percent of the total assistance package for the FRY.

I do not believe Montenegro could constructively absorb this much assistance, and I am concerned about the impact such a division of assistance for the FRY would have on U.S. assistance to Serbia. In my conversations with State Department officials, they also expressed strong reservations about providing $60 million to Montenegro, as they believe it is more than Montenegro can effectively absorb. The State Department believes Montenegro should not receive more than the $45 million recommended by the Senate, and in fact, they believe that $35-40 million would be an appropriate amount.

Given disturbing reports of official corruption that have surfaced regarding illicit activity in Montenegro, it is particularly important that we are able to fully account for the expenditure of U.S. assistance there. Moreover, if the House recommendation of $60 million prevails, U.S. assistance for the Republic of Serbia could fall to $85 million, which is significantly below the $100 million we provided to Serbia in fiscal year 2001.