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Copyright 2001 Federal News Service, Inc.  
Federal News Service

March 8, 2001, Thursday

SECTION: CAPITOL HILL HEARING

LENGTH: 14395 words

HEADLINE: HEARING OF THE SENATE FOREIGN RELATIONS COMMITTEE
 
SUBJECT: THE FISCAL YEAR 2002 FOREIGN OPERATIONS BUDGET
 
CHAIRED BY: SENATOR JESSE HELMS (R-NC)
 
LOCATION: 419 DIRKSEN SENATE OFFICE BUILDING, WASHINGTON, D.C.

WITNESSES: SECRETARY OF STATE COLIN POWELL
 


BODY:
SEN. HELMS: (Strikes gavel.) The committee will come to order. And I wish we had a larger auditorium, because there are at least as many people outside as are inside. So you know how to draw a crowd, Mr. Secretary.

Having said that, we welcome you, of course, for this morning's meeting of the Senate Foreign Relations Committee. And this being your first appearance before the committee as secretary of State, we're pleased and honored to have you with us.

Now we hope that you'll always feel at home here and that you will visit with us often, not only when we ask you to come, but whenever you have something to say to Congress and the American people. So the door will always be open.

Before we turn to you for your testimony, there's one issue that I hope you will address while you are with us, and that is reforming foreign aid.

First, the Agency of (sic) International Development must be folded into the State Department and brought directly under the control of your own good self, the secretary of State.

Second, there must be a significant cut in the size and cost of the foreign aid bureaucracy, and I'll leave for -- to you to decide how much.

Third, we must take every penny we save by cutting bureaucracy and invest it in a new international development foundation charged with delivering block grants to private and faith-based charities that are saving lives all around the world.

And finally, we must match those savings, dollar for dollar, with an increased U.S. investment in the work of these relief organizations.

Specifically, Mr. Secretary, I pledge to you this morning that for every dollar we take out of bureaucratic overhead, I personally would support a matching dollar increase in U.S. assistance delivered through these private and faith-based charities.

In other words, every one dollar that is cut from the bureaucracy will translate into two dollars in real relief for the neediest people in this world.

Now, if you reduce the size of the bureaucracy by 5 percent, I personally will help you fight for a 5 percent increase in U.S. assistance. If you reduce the bureaucracy by 10 percent, I will champion a 10 percent increase; and 15 percent, you know, and on down the line. Mr. Secretary, let me put it this way: If you want to see how far I will go in working with you, just test me.

In any case, Mr. Secretary, I hope that I can have your commitment today to work with this committee to reform the way that we have been delivering so wastefully foreign aid in the past.

Senator Biden? Excuse me; I'm sorry.

SEN. JOSEPH BIDEN (D-DE): I beg your pardon, Mr. Chairman. Mr. Chairman, I join you in welcoming Secretary Powell.

Secretary Powell, I just want you to know that you have knowledgeable people, hopefully, in front of you, but you also have Mrs. Sarbanes sitting behind you, so -- who is more knowledgeable than we are. So I just want you -- I just embarrassed her and she's mad I've said that, but -- I welcome you here.

Last week the president submitted his budget, Mr. Secretary -- his budget outline, I should be more precise, to Congress. A more detailed budget is still to come. And based on what we know so far, I must tell you I am disappointed with the international affairs budget. It provides only a modest increase in real terms over fiscal year 2001, and it's below the levels provided for fiscal year 1999 and 2000. During your confirmation hearing, Mr. Secretary, you made clear your belief that you didn't have enough resources to accomplish your mission. Now, I acknowledge that you're just getting underway and there's a lot you have to get in place, and -- but I want you to know that you've not only raised my expectations, but I think you raised, in your first meetings with your colleagues at the State Department, their expectations as to how significant an increase may be forthcoming to do some of the very basic things that have to be done at State to modernize it.

As you well know, you've been put in the dubious position by the press and in both parties as being the guy who's going to be able to deliver like no other secretary could for your folks over at State, and so I realize you're in a bit of a tough position. I'm glad to see the increase, but I'm concerned that the funding levels in the budget may be insufficient to inadequate to strengthen our diplomatic readiness. It's a -- I think it's a delusion to believe that we can protect our numerous interests overseas with diplomatic infrastructure that's second rate -- I'm not talking about the people, I'm talking about the infrastructure -- and assistance programs that are underfunded.

As you continue to develop your priorities, I strongly urge you to seek additional funding for the department and international programs that you need, notwithstanding the fact you may not be able to get them. I realize every Cabinet secretary has that difficulty. But we're counting on you to make the case, the best case possible for the needs of the department.

I hope you can spend a few minutes this morning reporting on your recent trip, although I know that's not the primary purpose of your visit here today. And in particular I'm interested in hearing your ideas about reenergizing sanctions against Iraq. We also must keep the world focused on the key threats, Saddam's effort to acquire, as you've repeatedly pointed out, weapons of mass destruction and that can again and are likely to threaten their neighbors.

So I welcome you here. And I particularly welcome your assurance to our NATO partners. I've had more calls than I can tell you, including a visit from Lord Robertson yesterday, to tell me how pleased everyone was with your comment, "We went in together and we'll come out together. " I think that goes a long, long way to reassuring our NATO allies of our steadfastness and our commitment.

And finally, let me say a quick word about the current visit of South Korean President Kim, who is the author of the engagement strategy and slowly opening up North Korea. I must tell you I was somewhere between puzzled and disappointment -- disappointed by what the reports of the meeting with the president were yesterday, particularly in light of what I read your statements to be of taking a positive but not naive look at what possibilities there may be.

If President Kim is correctly quoted or paraphrased, he said he thinks there's a window of opportunity that's open now that will not stay open very long. As I've said in response to inquiries in the press, I'm not sure what's on the other side of that window; I'm not sure that we want what's on the other side of the window, but I am quite sure we should look through the window.

And so I hope that if you have an opportunity again today -- there's a lot on your plate here -- but I hope you get an opportunity to maybe -- "clarify" is the wrong word -- explain to us what President Bush -- if you're able to -- meant by his statement yesterday that there be no immediate -- and I emphasize I -- maybe because I want to convince myself -- look to the word "immediate" as the operative word, but I may be wrong -- no "immediate" interfacing with North Korea. But if you have time, I'd like you to maybe be able to respond to that in the question-and-answer period.

But again, I welcome you, look forward to working with you. As the senator said to you, I think you can count on both sides of this panel, Democrats and Republicans, to, once you conclude what you need -- to help you fight for the resources you believe you need at State to do the job I think we all think it need do.

But I thank you very much, and I thank you, Mr. Chairman.

SEN. HELMS: Mr. Secretary?

SEC. POWELL: Well, thank you very much, Mr. Chairman, and Senator Biden, for your welcome. It's good to be back before the committee, this time as the secretary of State. And I thank you for the prompt consideration of my nomination just a few short weeks ago. I've been the secretary of State for 5-1/2 weeks. I must admit, it's starting to feel like 5-1/2 months, if not 5-1/2 years, as I have begun to deal with the tasks before me.

And I am also pleased that you will be dealing with the other nominees for the Department of State in a prompt manner, as those nominees come up to you. It's still a little lonely down there at the State Department, Mr. Chairman, but I'm looking forward to a great team joining me in the very, very near future.

I, too, look forward to the opportunity on a regular basis to come before the committee and to share my thoughts on the policies of the Bush administration and to answer any questions you may have. And, of course, I am at your disposal at any time, Mr. Chairman, and members of the committee, and look forward to seeing you individually and in different aggregations and not just in the form of hearings.

Mr. Chairman, I fully take aboard what you said with respect to USAID. I remember vividly our previous conversation on this. Early on, the second week of my tenure as secretary of State, I went over to USAID, and with the entire staff sat and talked and began the process of understanding how they were operating, making it clear to them that changes would be coming.

I put in place an aggressive transition team, which is still over there working, and I'm waiting for their report back on what directions we ought to move into. And I made sure they understood your interest in this particular matter and said to the whole USAID team that I have been given an offer from Senator Helms as to how we can get more resources for these vital programs of ours if we show movement toward efficiency, toward reducing bureaucracy, and toward making better use of the nongovernmental organizations, especially faith-based sorts of organizations, that are available to us.

And so, Mr. Chairman, we have all that under way. As you know, the president has expressed his intention to nominate Mr. Andrew Nacios (sp) to be the next director of the USAID. He brings a great deal of experience and a great deal of leadership ability and skill to this task. And in my conversations with Andy, I made it clear to him that I wanted him to be a change agent, in order to make sure that we are doing the best job for the American people and the people of the world with the money is providing us to use through the U.S. Agency for International Development.

So I look forward to working with you, Mr. Chairman, and the members of the committee and the Congress on this issue. And I wrote down very, very carefully the deal that we just talked about -- one for one. It's going to be a lot more than one for one. And we'll look forward to that, Mr. Chairman.

Senator Biden, I thank you for your comment on resources. This budget submission is far from the end of the game; it's the beginning. In the short period of time we had to make adjustments to the budget submission, I think that the State Department did rather well, with a 5 percent overall increase in the account and the function, and with about a 15 percent increase in the Commerce-State-Justice piece of the account, which gives us the operational money we need to run the department. And so I think we're off to a good start.

But I am not fearful, at this point, that I'm going to fail the expectations that you have of me, sir, or that the department has of me, because I think President Bush also has expectations that we will do better and that he will help us do better in future budgets.

The out years are a source of concern, and we'll deal with that as we get into the next budget cycle. And I'm confident I'll be able to make the case that we'll generate more resources from within the president's budget and that I can come up in future hearings and talk about a higher level of resources for the department.

I think, before going into a very short version of my prepared statement, I'd like to talk to some of the foreign policy issues that Senator Biden raised, because, for the most part, I'm here to talk about the budget, but of course we can talk about any issues that members wish to talk about.

And let me start with Iraq. Iraq and the situation in Iraq was the principal purpose of my trip throughout the Persian Gulf and Middle East area the week before last.

When we took over on the 20th of January, I discovered that we had an Iraq policy that was in disarray. And the sanctions part of that policy was not just in disarray, it was falling apart. We were losing support for the sanctions regime that had served so well over the last 10 years. With all of the ups and downs, and with all the difficulties are associated with that regime, it was falling apart. It had been successful. Saddam Hussein has not be able to rebuild his army, notwithstanding claims that he has. He has fewer tanks in his inventory today than he had 10 years ago. Even though we know he's working on weapons of mass destruction, we know he has things squirreled away, but at the same time we have not seen that capacity emerge to present a full-fledged threat to us.

So I think credit has to be given to the United Nations and to the Perm 5 and to the nations in the region for putting in place a regime that has kept him pretty much in check.

What I found on the 20th of January, however, was that regime was collapsing. More and more nations were saying, "Let's just get rid of the sanctions. Let's not worry about inspectors. Let's just forget it." There was all kinds of leakage from the front-line states, whether it was through Syria, through Jordan, through Turkey, or down through the Persian Gulf, with smuggling of oil.

And so what I felt we had to do was to start taking a look at these sanctions, remember what they were oriented on in the first place, and remember that with respect to the sanctions -- let's call that basket one -- that's what the United Nations does. It has nothing to do with regime change. That's U.S. policy. That's U.S. policy that -- let's put basket two, the no-fly zone, or in basket three Iraqi opposition activities.

My immediate concern was basket one, the U.N. basket, and how it was falling apart. And it seemed to me the first thing we had to do was to change the nature of the debate. We were being accused, and we were taking on the burden of hurting Iraqi people, hurting Iraqi children, and we needed to turn that around. The purpose of these sanctions was to go after weapons of mass destruction. That's what they were put in place for, in the first instance, back at the end of the Gulf War. So let's start talking about how the Iraqi regime is threatening children, their own children, and the children of Saudi Arabia and Kuwait and Syria and all over the region, how they were a danger -- in danger of what Saddam Hussein was doing, and take away the argument he was using against us.

In order to make sure that that carried forward, we then had to take a look at the sanctions themselves. Were they being used to go after weapons of mass destruction, and was that the way they were connected to our original goals, or increasingly, were those sanctions starting to look as if they were hurting the Iraqi people?

And it seems to me one approach to this was to go to those sanctions and eliminate those items in the sanctions regime that really were of civilian use and benefitted people, and focus them exclusively on weapons of mass destruction and items that could be directed toward the development of weapons of mass destruction.

I carried that message around the region, and I found that our Arab friends in the region, as well as members of the Perm 5 in the United Nations, as well as a number of my colleagues in NATO, found this to be a very attractive approach and that we should continue down this line. And so we are continuing down this line that says: Let's see if there is a better way to use these sanctions to go after weapons of mass destruction and take away the argument we have given him that we are somehow hurting the Iraqi people.

He's hurting the Iraqi people, not us. There is more than enough money available to the regime now to take care of the needs they have. No more money comes in as a result of a change to this new kind of sanctions policy, but there is greater flexibility for the regime if they choose to use that flexibility to take care of the needs of its people.

How do we get out of this regime ultimately? The inspectors have to go back in. If he wants to get out of this, if he wants to regain control of the oil-for-food escrow accounts, the only way that can happen is for the inspectors to go back in. But rather than us begging him to let the inspectors in, the burden is now on him. We control the money. We will continue to restrict weapons of mass destruction. You no longer have an argument, Mr. Iraqi Regime, that we are hurting your people. You let the inspectors in, and we can start to get out of this. If the inspectors get in, do their job, we're satisfied with their first look at things, maybe we can suspend the sanctions. And then at some point, way in the future, when we're absolutely satisfied there are no such weapons around, then maybe we can consider lifting. But that is a long way in the future.

So this wasn't an effort to ease the sanctions; this was an effort to rescue the sanctions policy that was collapsing. We discovered that we were in an airplane that was heading to a crash. And what we have done and what we are trying to do is to pull it out of that dive and put it on an altitude that's sustainable, bring the coalition back together.

As part of this approach to the problem, we would also make sure that the Iraqi regime understood that we reserve the right to strike militarily any activity out there, any facility we find that is inconsistent with their obligations to get rid of such weapons of mass destruction.

That takes care of the U.N. piece.

On the no-fly zone, we're reviewing our policies to see if we are operating those in the most effective way possible. And with respect to the Iraqi opposition activities, we are supporting those. Our principal avenue of support is with the Iraqi National Congress. And last week I released more money of the money that had been made available to us by the Congress, released more of that money for their activities. And we're looking at what more we could support and what other opposition activities are available that we might bring into this strategy of regime change.

And so I think it is a comprehensive, full review to bring the coalition back together, put the burden on the Iraqi regime, keep focused on what is important, weapons of mass destruction, and keep him isolated and make sure that he is contained. And hopefully, the day will come when circumstances will allow, permit, or it will happen within Iraq we see a regime change that will be better for the world.

And so I would hope that the members of the committee will examine this approach as we develop it further, and I hope that you will find the basis upon which you can support it.

Senator Biden also mentioned NATO. I'm very pleased that we have solid relations with NATO. There were some irritants in the relationship, and I think those have been taken care of.

With respect to the president's meeting with Kim Dae Jung yesterday, I think it was a very good meeting. They had a good exchange of views. The president expressed his support for President Kim Dae Jung's efforts to open North Korea. It is a regime that is despotic. It is broken. We have no illusions about this regime. We have no illusions about the nature of the gentleman who runs North Korea. He is a despot. But he is also sitting on a failed society that has to somehow begin opening if it is not to collapse. Once it's opened, it may well collapse anyway. And so we support what Kim Dae Jung is doing.

At the same time, we have expressed in the strongest possible terms, and President Bush did it in the strongest possible terms yesterday, our concerns about their efforts toward weapons -- development of weapons of mass destruction and the proliferation of such weapons and missiles and other materials to other nations, not only in the region but around the world, a major source of proliferation. And as we look at the elements of the negotiation that the previous administration had left behind, there are some things there that are very promising. What was not there was a monitoring and verification regime of the kind that we would have to have in order to move forward in negotiations with such a regime. And so what the president was saying yesterday is that we're going to take our time, we're going to put together a comprehensive policy, and in due course, at a time and at a pace of our choosing, we will decide and determine how best to engage with the North Korean regime.

But it was a good meeting and I think the two presidents had a very candid exchange of views. And we look forward to more exchanges of views with the South Koreans as we move forward, as well as with the Japanese, so we can move forward together even though we may be on separate tracks from time to time.

Mr. Chairman, I will stop there on foreign policy issues, and just briefly touch on what we're trying to do in this budget. As you know, there are many ways that the president engages in foreign policy. Sometimes it's meetings such as he held yesterday with President Kim Dae Jung or meetings he's held with President Fox and held with Prime Minister Chretien of Canada. Sometimes it's sending the secretary of State whizzing around the world, seven countries in four days. That gets a lot of news.

But the real work of foreign policy is not accomplished just by presidents or by secretaries of State, it's done by the thousands and thousands of dedicated Americans who have signed up to serve in the Foreign Service, to serve as civil servants, to serve as Foreign Service nationals, for those who are not Americans, representing us around the world. And it is theirs that is the daily grind of foreign policy, punctuated by the occasional thrill and excitement of a diplomatic success. And their activities range from the minor to the sublime; from the courteous handling of a visa application to the inking of a treaty limiting arms control or limiting conventional arms in Europe.

And I'm saying to you, Mr. Chairman, something that you and the members of the committee already know. There are no finer groups of Americans anywhere in the world who represent our interests as well. And it is our obligation to give them the resources they need. I've seen how we try to take care of our military folks. I mentioned this to you at the last hearing, how places like Camp Bondsteel look so great when you go over to the Balkans. We ought to make sure that all of our State Department facilities look as great as those military facilities.

And I think the budget that we have presented to you, with the increases that are proposed, start moving us in that direction. We are making strides in classified information technology. We're making sure that our people have access to the Internet. We're doing all we can to get a handle on energy -- on embassy construction.

Especially grateful to a former member of his committee, Senator Grams, for his part in conceiving the five-year authorization of embassy funds. I'm very pleased that 2-1/2 years after the bombings in Kenya and Tanzania, we're well on our way to reestablishing our presence there. We have other embassies that are state of the art that are coming up out of the ground now.

So we have a lot going on, but I think we can do a better job of managing our embassy construction program. It is for that reason that I went out and tried to find one of the best -- best persons I could find, expert in this, to come in and help me in the department. I've acquired the services of a retired major general in the United States Army -- surprise, surprise. But retired Major General Chuck Williams, Charles E. Williams, is from the Corps of Engineers. He built Fort Drum, New York. He built the Dulles greenway out here, not far from here. He has brought projects to life all over the world, and he knows this business. And he is coming in to serve as the new head of our Foreign Buildings Office. I'm going to move it out from under its current location so that it can have more direct reporting responsibility to me and to the undersecretary for Management.

And General Williams' instructions are: Get out there, find out what we need to fix in the management of this account. And we want to get rid of the bureaucracy, we want to find private ways of doing things. This is a first step toward perhaps ultimately going in the direction of the Kaden Commission recommendation, which would move it entirely out of the department. I'm not there, yet; got a long way to go. But this, I think, is an aggressive first step in showing the kind of leadership I want the department to see, that we have identified a problem in that operation, went out and got a leader who was skilled, not just a political appointee, but somebody who knows how to get this job done, given him the political mandate to do it. And I'm sure that General Williams will do a good job that will make us all proud.

So, Mr. Chairman, that's the kind of thing we're doing, the kind of thing we're going to do to get our information infrastructure fixed to make sure that 30,000 desks throughout the State Department are wired for unclassified access to the Internet. This budget will do that. And then we'll start working on classified access to the Internet.

We're going to make sure that our people are state of the art. We're going to make sure that if an ambassador somewhere out there needs to get something from the Foreign Broadcast Information Service, he isn't going to wait for something to be faxed or mailed to him, he's going to be able to bring it out of the ether online, instantaneously, as he needs it. We're going to get into the state of the art with the State Department.

Mr. Chairman, I want our people to be supported, as well as all of our soldiers and sailors and airmen and Marines, and we're going to make sure that happens in the years ahead.

The president's budget also provides money to hire a number of new Foreign Service officers. We are below the number we need to get the job done. One of things we're going to do with this new budget is to create a float. We don't have a float in the department; we always are robbing Peter to pay Paul when a new mission comes along. I need a float, just as we had in the military, so people can go to training, so that there's always a little reserve capacity where people can go off to school and get the additional skills they need without us vacating a position somewhere in an embassy or an important office here in Washington. And so we're going to increase the number of Foreign Service officers, we're going to create float so they get the training that they need.

And you're going to see, Mr. Chairman, that the budget also provides for the kinds of things that really advance our foreign policy -- programs aimed at restoring peace, building democracy and civil societies, safeguarding human rights, tackling nonproliferation and counterterrorism challenges, addressing global health and environmental issues, responding to disasters and promoting economic reform. The budget expands counter-drug, alternative development, and government reform programs in the Andean region. It helps provide military assistance to Israel to meet cash flow needs. It'll fund all of the scheduled payments that are due in 2002 to the multilateral development banks and the U.S. commitment to the heavily indebted poor countries. It increases funding for migration and refugee assistance; for HIV/AIDS, one of the biggest problems facing the world today; trafficking in women; basic education for children.

And with respect to trafficking in women and children, let me take this opportunity to thank Senator Brownback for his work in this effort, and for the amendment that you offered last year, Senator. That was successful and added $10 million in economic support funds for efforts in the Sudan to protect civilians from attacks and from slave trades.

Mr. Chairman, the president's budget for 2002 also provides money to support peacekeeping operations, supports political and economic transitions in Africa, with emphasis on countries such as Nigeria and South Africa. As I go into these sorts of programs, I'm going to be trying to invest in those countries that have made the necessary changes that put them on the path of democracy and the free enterprise system, and not keep propping up despots who won't move in the right direction. The Cold War is over. We don't need to prop up those kinds of institutions and countries any longer.

And so, Mr. Chairman, I think it's a budget that moves in the direction of freedom and democracy and supporting those efforts. It'll help to reduce the risks presented by international terrorism. It'll help halt the spread of weapons of mass destruction by stronger -- providing stronger international safeguards on civilian nuclear activity.

We're also going to increase funding for the Peace Corps, and I know Senator Dodd has a particular interest in that.

And as I noted earlier, we're also going to provide additional money, not for Plan Colombia per se, but to regionalize our activities, so that Plan Colombia just does not become a snapshot, but it is part of a broader strategy for the region.

Mr. Chairman, I can also say to you that I'm going to work hard to carve out needless layers within the State Department. I know that the committee has an intense interest in organizational activities and streamlining activities in the department, and I'm going to be on top of that. But I think that all begins with leadership. It begins with putting a team together. It begins with communicating throughout the department that we are a team; we're going to be linked together on the basis of trust. And when you got that all going, Mr. Chairman, then you can start to make the organizational changes that I think will be needed and are needed to make sure that the department is relevant to the needs of the nation and the needs of the world in the 21st century.

Mr. Chairman, let me stop there. I'll provide the whole statement for the record, with your permission. And now I look forward to your questions.

SEN. HELMS: Mr. Secretary, an excellent statement. Your entire statement, as written, will be printed in the record as if read.

I was sitting here thinking about Saddam Hussein. There may have been somewhere in history a more brutal guy to his own people than Saddam.

I shall never forget what he did to the Kurds, hundreds of thousands of them, and so many other instances, and I'm a little disappointed in my and your friends among the other Arab states. They seem to be a little bit less than eager to get involved, and in the name of God and everything else that's holy, whatever their God is, they had better take stock of what Saddam Hussein is.

Now, let me switch to another -- oh, by the way, you started the clock on me, and we'll have five minutes on the first round. And when the red light comes on, please be conclusive in what you say.

In 1982, the Reagan administration made the "Six Assurances" to Congress on Taiwan, and every administration since then has declared them to be U.S. policy. And I'm particularly interested about assurance number three, which was that that United States would not engage in advanced consultations with the People's Republic of China -- that is, Communist China -- on defense sales to Taiwan. And I'd like for you to comment, if you will, sir, that all of the Six Assurances will remain U.S. policy and that there will be no advance consultations with mainland China, Beijing, on defense sales to Taiwan.

SEC. POWELL: They do remain U.S. policy, and we are now reviewing the arms sales proposal. We have the list, and going over the list, from the Republic of China, and I can assure you I have no plans to consult with anybody in the People's Republic of China on what the relationship is we have with Taiwan or what their needs should or should not be.

SEN. HELMS: Are you confident that nobody else in the administration will consult with Beijing --

SEC. POWELL: Yes, sir, I'm reasonably confident. It's an administration where I can't think of any of my colleagues who would be so inclined.

SEN. HELMS: They'd better not, or we'll both jump on them at the same time.

SEC. POWELL: (Chuckles.)

SEN. HELMS: During your recent trip -- you mentioned this in your remarks -- your trip to the Middle East, you talked about "smart" sanctions on Iraq. And I guess we all are in favor of smart sanctions, as opposed to dumb sanctions, but I've got to tell you, I'm a little bit confused about smart and dumb.

I assume that the United States will continue to object to any exports to Iraq that will contribute to Saddam's weapons program?

SEC. POWELL: Absolutely.

SEN. HELMS: All right. And I'm told that there's already $4 billion in cash available through the United Nations escrow account for Iraq to buy pretty much anything Iraq needs. Is that your understanding, too?

SEC. POWELL: Sir, as long as the items they wish to purchase are not proscribed because they are weapons or they might lead to the development of a weapon, or they may be dual-use of a nature that causes us concern. If that's the case, then those contracts will not be honored, no matter how much money there is in that escrow account.

SEN. HELMS: Well, are you going to monitor that situation personally?

SEC. POWELL: Very carefully, and one of the advantages of the new system is that we can sort of sweep out the underbrush of other things that people want to argue about and make sure we're focusing on the important things that really could add to his capability.

SEN. HELMS: Just one further question on this. What might Saddam be able to buy under smart sanctions that he's not able to buy right now?

SEC. POWELL: There are probably some dual-use items that we might be holding up. Let me just pull an example out of the air, which may or may not be correct, but I think it's illustrative -- and you've seen it in the paper from time to time -- water pumps. Water pumps can be used to bring water up out of a well, and that would benefit people. But if it's a sophisticated kind of a water pump, a water pump that is of a uniquely high tolerance and pressure settings or whatnot that could be used in a industrial way and perhaps used in the kind of plant that might develop weapons of mass destruction, I think what we would say is let water pump number one go, let's not waste time arguing about that, and let's make sure we take a good look at water pump number two.

The United States right now holds up about 1,500 contracts, and at the same time we are holding up those 1,500, the United Kingdom only finds 250 of those troublesome, and all of our other friends find only 10 or 20, you know, troublesome. So I think we would take another look at the ones we're holding up to make sure we are holding them up for the real reasons of weapons of mass destruction and not just for the real reason -- or another reason, which is we're holding them up to hold them up because there are some things in there that we're really going to make a point of that all of our other allies do not make or is worth making a point of. That's been the problem, and that's why we're getting such pressure. "Look, if we can't do this in a smart way, as some call it, then let's get rid of the whole thing."

One other point, if I may, sir. I understand your disappointment with respect to the Arab states, but I came back from my trip with all of them saying to me -- and I left one of my assistant secretaries behind to visit the rest of them -- "We understand the threat presented by Saddam Hussein, and we are willing to work with you on the weapons of mass destruction." But we're getting killed in the Arab street, we're getting killed in the Arab population, who think we are responsible for hurting the Iraqi people with the sanctions regime. So this is a way of clearing out that argument and giving them something to stand for with us.

SEN. HELMS: I'll be back.

Senator Biden.

SEN. BIDEN: Thank you, Mr. Chairman.

I'm one of those who's sympathetic to what you're attempting to do with regard to Iraq, Mr. Secretary, in large part because I believe if something isn't done, we will be unilaterally imposing sanctions. I'm not going to take the time now, but at another time maybe I can drop you a note.

I'm very anxious to know what the French reaction is to your initiative and whether or not -- what they consider to be -- I'm not sure they consider anything to be smart sanctions right now.

SEC. POWELL: I had positive discussions with my French colleague, and I'm waiting now for a further response.

SEN. BIDEN: I'd like to move very quickly to the issue of the budget, your budget. We're at a slight disadvantage here this morning, we the committee, because, as you well know, we have the 150 function number, but we don't have the account-level numbers. We inquired of your folks and they indicated, and possibly with good reason, that they weren't authorized to release any of those numbers until Monday. And so when you talk to us about the increase in the State-Commerce-Justice budget, they're really where those account functions are, and we don't know how they break out.

Could you, in the brief time I have here, list for me what the priorities are in this sense: you've sought, roughly, a $700 million increase in the budget, in your budget, which in real terms is about 3 percent, as I read it, Mr. Secretary. But I don't want to quibble over it's 3 or 5. You, obviously, made judgments about what are the most important areas you need immediately to get increases and infusion of dollars. Can you tell us not necessarily the numbers, but what the priorities are in your first crack at an attempt to put this department in shape?

SEC. POWELL: Information technology investment, counselor (?) affairs, embassy security. There is a -- let's see -- those are the three that immediately come to mind. I'd like to give you a more --

SEN. BIDEN: Well, no. I'm sure by Monday -- we've been assured by Monday you will -- your department will provide those to us. We had your old boss here, Frank Carlucci, last week, and he made a very, very strong case for additional resources, as well as reform. And he emphasized very strongly embassy security, technology and increased investment in personnel, bringing the department up to -- now, it's one thing to cut the fat that exists in the bureaucracy, and there is a lot there, in my view, but it's another thing to have the shortfall in Foreign Service officers who are coming in. And there seems to be an attitude, at least on the campuses I've been, there's not nearly the enthusiasm for getting into this line of work that I think there need be -- not only should be, need be. And so I hope as you develop and lay out these priorities, you'll be willing to discuss them with us. And I'm anxious to see what the actual account levels are so we could more intelligently follow up with questions.

SEC. POWELL: Yeah. Recruiting is a part of it. And sometimes it doesn't take money, it just takes common sense. It's taken us 27 months -- I may have mentioned this before -- to recruit somebody from the day they say they want to join the Foreign Service till we get them in. Well, for young people today, they can't hang around for 2- 1/2 years. So we got that down now to 22 months. And I want to find ways to change the whole recruiting system so that we can get people in a lot faster and get them moving into meaningful jobs.

SEN. BIDEN: Let me just say one thing on Korea. You indicated that there was a time and pace of the administration's choosing. What was missing was mention of monitoring or verification. I don't think that was missing. In my discussions with the last administration, they were -- they hadn't reached any agreement on that, but that was the next stage. When they were deciding whether or not to go in January -- and they made, I think, a wise decision not to put your administration in the position in January of having moved -- and you take time in due course.

Let me just state what worries me, and if you want to respond, fine. What worries me is, in my experience, which is not that expansive, but I've been here a long time -- it's been 28 years. Chinese, North Koreans, even our Japanese allies sometimes have difficulty discerning the nuanced approaches that we occasionally take, or the blunt approaches we take.

What I'm very worried about is that this opportunity to find out whether or not there is any real possibility here is slipping away, can slip away, and the rhetoric makes a difference. Rhetoric -- words matter, I think, particularly in this engagement.

I compliment you on the rhetoric you have used, the words you have used. I just strongly urge you to move along as quickly as you can, due course being sooner, to decide what your policy is, and move on, because I -- this could easily move -- escape us.

SEN. HELMS: Senator Lugar?

SEN. RICHARD LUGAR (R-IN): Thank you very much, Mr. Chairman.

Secretary Powell, this is a moment at least for sort of bullet comments, just to take full advantage of five minutes. But let me say, first of all, that I appreciate very much the rallies that you've held at the State Department, and inviting the president to come over, and he responded. I think this is tremendously important, and I just applaud everything you're doing with regard to the morale, but the substance, really, of those relationships.

I share Senator Biden's anxiety that the budget submission may not support all of the thoughts that you have expressed today, as well as publicly to people there. I just wanted to say that there are strong supporters of you on the Republican side and the Democratic side to do a whole lot more and to have an ambitious budget submission. And I mean that sincerely. I think this is a crucial point at the beginning of this administration, President Bush and your administration as secretary of State. And if the moment is not seized now, it's likely to be downhill from there on. So --

SEN. BIDEN: It may be the only thing there's absolute, total agreement on.

SEN. LUGAR: We're hopeful.

Now having said that, specifically, we've had success, created by our chairman and Senator Biden, with regard to payment of some of our U.N. dues and arrears.

There is still an item of the 25 percent cap on peacekeeping that I believe must be addressed. I hope that you will work with the chairman and ranking member, with members of the committee, to fulfill what I believe were obligations undertaken by former Ambassador Holbrooke at the U.N., understood by many of our allies, who are in fact providing the peacekeeping and whom we owe. And I think this is a very important point to follow through.

Secondly, last year we did adopt the African Growth and Opportunity Act. The principal work was done by distinguished members of the House of Representatives. I introduced on the Senate side equivalent legislation, joined by many of my colleagues at this table. A very modest act was passed, inhibited largely by protectionist forces in our country. But nevertheless, it was a beginning, a minimal beginning, to some addressing of the economic side of the African equation.

I am hopeful, because I know your intense interest in that continent and in an unfilled agenda, that there will be a full-blown program, a comprehensive approach to Africa which I look forward to supporting and, I think, many others would, around this table.

On sanctions reform, I have offered, along with many others, for two Congresses, and am prepared to offer a third, a comprehensive sanction reform that does not eliminate sanctions, but it gives at least some criteria as to why we ought to do them and some way of removing them and some way of evaluating whether they're effective. I know that you're studying the bill that we offered last year supported by 600 firms -- USA Engage, the American Farm Bureau and others. I would like to work with you as we introduce that legislation and hope for greater success on this occasion.

I have worked with Senator Biden and Representative Portman over on the House side, once again, on a renewal of the Tropical Forest Conservation Act for another five years. I think, for a variety of reasons, this makes sense in foreign policy as well as in the ecology, but nevertheless, it is worth your study, I believe, or those of your subordinates who are involved in this, to make certain we do it right.

And finally, I would ask that the State Department position in the past administration with regard to carbon sinks, as the entire idea of ridding the world of carbon dioxide under any regime, that you study that carefully. This is something of great consequence to American agriculture, for obvious reasons.

I was sad at the negotiations that the carbon sink situation sort of went downhill, after an aggressive posture initially by State, under a European barrage who really simply want American industry to suffer. But nevertheless, the carbon sink idea is a good one in fulfilling a lot of obligations. We ought to do it in any event, whether we have international obligations. But insofar as we have a negotiating posture that State has on this subject, why I think it is an important bridge. And I would say this is one area where American farmers come into very sharp coincidence with the State Department as supporters of American diplomacy. I'm looking for those bridges, for obvious reasons, and so I mention it today.

Having said all of that, only a few seconds are there for you to respond, but I know that you have jotted down a few of these things, and I'm grateful to you.

SEN. HELMS: Thank the distinguished former chair. He raised a number of good points, and I wish you would comment --

SEC. POWELL: Yes, if I just -- can I have just a few seconds to respond?

SEN. HELMS: (Off mike.)

SEC. POWELL: On resources, thank you very much, Senator Lugar, and I hope you will keep pushing me, kicking me, nudging me in the direction of more resources. It of course helps my case as I make the argument within the administration as well.

On lifting the cap on peacekeeping, I have been in contact both with the chairman and with Senator Biden on how best to do that, and I think it's a matter of how best to do that, as opposed to doing it.

The Africa Growth and Opportunity Act; a wonderful piece of work. Now we've got to implement it and make sure it happens.

Sanctions reform; I look forward to working with you, and we're examining your proposals. I have found them, some of the sanctions, to be even more constraining now that I have been in the job for five and a half weeks than I did when I first mentioned it at the end of my transition period.

Carbon sinks, if I can just touch on that one. Understand that the administration is just now coming to grips with what our policy is going to be on global warming and climate, getting ourselves ready for the next conference at the end of July, which we hope will not be as big a disaster as the last one was.

SEN. LUGAR: Thank you very much. Thank you, Mr. Chairman.

SEN. HELMS: Good work, Senator.

Senator Sarbanes?

SEN. PAUL SARBANES (D-MD): Well, thank you very much, Mr. Chairman. Mr. Secretary, welcome. Pleased to have you back before the committee.

First of all, I'm just kind of curious. What's it like driving this gray Mercedes S500 with a 12-cylinder --

SEC. POWELL: It was cool. (Laughs.) It was very cool. It was -- (laughter) --

SEN. SARBANES: I hope the king realized he was really getting a high- paid chauffeur there!

SEC. POWELL: Well, I felt a little awkward the next day when I realized it had made the New York Times. That was not our intention. So I called His Majesty a day later and said I hope I had not caused him any embarrassment. And he assured me, not at all, and come back any time. And so I look forward to that.

And then, as another aside, I called another leader in the region, who I did not have the chance to visit, and we were chatting about Iraq and the Middle East peace process, and at the end of the conversation, in order to needle me for not having visited that particular country, he said, "You know, we have wonderful cars in this country, too." (Laughter.) So I have to get there very soon.

SEN. SARBANES: I want to, first, commend you for the effort you're making within the department itself to draw the career people into the process. It's obviously been very well received. There are an awful lot of very able and talented people there whose skills and capacities ought to be drawn upon. And I'm delighted to see what you're doing, and I'd just encourage you in that regard. I think having these desk officers brief the president on his Mexico visit was a terrific idea. And I understand from various reports that it just gave a terrific boost to morale within the -- well, certainly a boost to the morale of the desk officers and the more junior people. I'm not all together sure exactly how the senior people are taking it. But in any event.

I want to echo my colleagues on your budget. It's kind of strange to come up here and have members of the Congress telling you, you know, you ought to be seeking more resources rather than trying to chop you down.

When George Shultz came in as secretary of State, he met with a number of us, and one of the pitches he made was the necessity of having adequate resources. Of course we had a Republican administration, a Democratic Congress. But he got a reception -- a good reception on the Democratic side to that pitch -- not unanimous, but a good reception. And, of course, he had the support of Republican members of the Congress because it was -- I mean, it was the Reagan administration. And he was able to get a good increase in the resources to carry out our international affairs function. In fact, the average over those years, in current dollars, is $27.5 billion, just to put this in perspective. This is when you were at the National Security Council.

And the point I'm trying to make is, you know, you had more resources then to work with, in relative terms, than you have today -- significantly more. I mean, you'd have to have about a 12 percent increase in this budget you've come forward with to just reach that average figure, let alone some of the better years.

And I dare say, if at any point our military budget had ever reached the point where our diplomatic budget is -- it would never have reached it; the outcry would have started much sooner, and the response would have been much more intense; it never would have gotten down to that point. But you don't have the resources, in my judgment, with which to do the job. And I just urge you to push very hard for that.

SEC. POWELL: Thank you, Senator.

SEN. SARBANES: Now, let me make one final point, and leave you with this question. At the end of January, there was an article in the Washington Post. I'm going to quote from it:

"Two dozen leading conservatives yesterday sent a letter calling on President Bush to make human rights, religious freedom and democracy priorities for American foreign policy, and urging him not to adopt a narrow view of U.S. national interests. American leadership must never remain indifferent to tyranny, must never be agnostic about the virtues of political and economic freedom, just always be concerned with the fortunes of fragile democracies,' the letter said."

And the same letter apparently was sent to you and to the national security adviser and to the vice president. "The letter also recommended support for groups promoting democracy and said U.S. non- humanitarian aid, including assistance given through international lending institutions, should be used to promote freedom and stop tyranny. When given to governments, the aid should be tied to countries' performance on human rights,' the group said."

I just want to make the point for the record that that's the sentiment and an emphasis on priority that extends well beyond the conservative part of our political spectrum. And I think it is fairly widely held here in the Congress and across the country. And I guess my question is, have you all made any response to this letter, or what is your view on this emphasis with respect to our foreign policy priorities?

SEC. POWELL: I agree. I believe that our foreign policy should rest on the bedrock of human rights, respect for the individual, democracy and nations that are moving in that direction. We should invest in those nations and not invest in those nations that are despotic or are moving in the wrong direction. We may sometimes have to do some things with those nations for humanitarian concerns because there are people under those despots. But for the most part we should invest in those that are moving in the right direction.

And so I agree entirely with the sentiment. I can't say whether or not the letter has been answered yet.

SEN. SARBANES: Thank you.

SEN. HELMS: Senator Hagel.

SEN. CHARLES HAGEL (R-NE): Mr. Chairman, thank you.

Mr. Secretary, welcome, good morning. I believe you are on the right track regarding sanctions in Iraq. And I would encourage you to continue to think broadly and deeply as you are. And on that general point Senator Lugar made some observations regarding trade and sanctions and -- something that he has been very actively engaged in for many years.

It's my understanding that you are in some stage of review at the State Department on all sanctions, on all certifications, on onerous reporting requirements. You, I believe, have significant support up here to help you clear out the underbrush. I wonder if you could give us some status report on how you're doing with all of those reviews.

SEC. POWELL: We are working on that, senator. I don't have a date I can give you where it will be ready. But we want to make sure that sanctions, certifications and similar constraints are serving their originally intended purpose and they're not just burdens for us and no longer serving the foreign policy interest. And this is not to say that I don't believe in sanctions; I believe in sanctions that are serving a purpose. And I will always support those. But where they become a hindrance -- and some of the drug certification procedures right now I think have become a problem -- then I think we should aggressively go after them. In many instances there are strong constituencies for some of these sanctions, and it's difficult to remove the sanctions language. But as soon as that review is completed, you can be sure I will be bringing it up before this committee.

SEN. HAGEL: Thank you.

Senator Lugar also touched on carbon sinks. And a general question I would have to you regarding climate change, you said that the administration was now just coming to grips with all the dynamics, and we understand that. But let me ask this: Is it your intention, is it the president's intention to continue to keep the climate change responsibility portfolio within the State Department?

SEC. POWELL: Yes, although the interagency working groups that come together to determine our position might well be chaired by the NSC because of the disparate Cabinet responsibilities. It really is such a complex issue that it goes well beyond the State Department -- EPA, Treasury, Commerce -- a lot of others in the administration want to play a role in establishing a new policy. But you can be sure that State will continue to play a lead role.

SEN. HAGEL: One of the frustrations that some of us had, if not many of us, in a subcommittee that I chair on this committee, have chaired the last four years, was that we could never get a concentrated answer to some of these, as you suggest, complicated questions to complicated issues. And we would get witnesses before us who would say, "Well, I don't know; that's the other department" or "that's the White House" or "that's somewhere else." And I would hope that this administration, as you develop your process and your policy, is going to be able to concentrate the responsibility for this issue in the hands of someone.

And I noted the EPA administrator saying some things last week, and then having to say other things in Rome, which probably didn't reflect great credit on the administration. But I understand how those things work. But I would hope that that is done fairly quickly, that you get control of that.

SEC. POWELL: We're trying. We've pulled together an interagency briefing team that has gone around to each one of the Cabinet officers and presented them the same briefing, so we can all start off with a common understanding of the challenge and the dynamics and what global warming is all about. And now we're starting to get together to come forward with individual agency positions and how do we move forward, come up with an administration position.

SEN. HAGEL: Thank you.

Let me ask a broader question, with my last few seconds. The South American situation in a specific area, the Andean countries, a number of my colleagues and I have just recently visited Colombia and Ecuador. Complicated problems, issues, dynamics.

Plan Colombia. I support Plan Colombia. Could you reflect on that a bit, as to where you are, the position of the president on that part of the world, what we can look for and from you in further support and further actions regarding South America?

SEC. POWELL: We, of course, support Plan Colombia, and think there has been some degree of success in the destruction of some of the crops in the Putumayo Valley. So we'll continue to support Plan Colombia.

We feel just as strongly that you can't deal with the problem in one place without it spreading to other parts of the region. So in subsequent years, we'll be talking about an Andean strategy, and there's money in the budget for that Andean strategy.

And we'll be talking about how the Free Trade Association of the Americas plays into this, how Andean trade preference extension plays into all of this. So we'll try to come with a comprehensive strategy that deals with the whole region and not just singularly focusing on Plan Colombia.

SEN. HAGEL: Thank you.

SEN. HELMS: Senator Kerry.

Before you begin, John, there's a roll-call vote scheduled on the floor at 11:50 a.m. I just want senators be aware of that.

SEN. JOHN KERRY (D-MA): Thank you, Mr. Chairman.

SEN. HELMS: Thank you.

SEN. KERRY: Mr. Secretary, welcome. Good to see you.

SEC. POWELL: Thank you, Senator.

SEN. KERRY: Mr. Secretary, I must confess to you that I was both puzzled and somewhat troubled by the decision made yesterday to announce that the administration did not intend to immediately sort of, quote, "pick up" where the Clinton administration left off, which really means "negotiate." I mean, that's what was going on. It was a negotiating process.

On Tuesday of this week, you were quoted as saying the administration, the Bush administration, did intend to pick up. By the end of the meeting with President Kim, it was stated that there was some question about whether or not agreements had been lived up with. There's only one agreement. And it seems to me the only way to proceed is to negotiate.

What is the -- what changed in those two days? And why is it that you would not send a signal to North Korea that the direction they've been moving in is in fact welcomed and that you welcome the concept of a dialogue?

SEC. POWELL: I think there's less difference there than meets the eye. Obviously, when you come in from a -- replacing a previous administration, things are left on the table. What was left on the table from North Korea was a set of ideas with respect to reducing their missile production, their proliferation of this kind of system. And Dr. Rice and I were briefed extensively by the outgoing administration during the transition period.

What was missing in what had been done was how one would put in place any kind of monitoring or verification regime. And the North Koreans had not engaged on that in any serious way in the period of the Clinton administration.

So where we are is that those elements are still there. They haven't been dismissed. They haven't been rejected. But the president said -- and we all agree -- that we want to take some time in reviewing what was accomplished in the previous administration, in determining what we think we're going to need with respect to monitoring and verification, and seeing whether there are other things that ought to be part of such a discussion.

For example, there's a huge army poised on the demilitarized zone, pointing south, that is probably as great a threat to South Korea and Seoul and regional stability as are weapons of mass destruction. Should that be included in a negotiation with the North Koreans? And President Bush made that point to President Kim yesterday.

And so what came out of yesterday is that President Bush will continue our policy review. We will do it in a measured way, with clear-eyed realism with respect to the nature of the regime and the single individual who has all authority within that regime, and at a time when we're ready and a time we're prepared to engage, we will then engage at that time.

But there was a suggestion that we were getting ready to do it imminently, and it was that suggestion that we were trying to beat down.

SEN. KERRY: Do you -- at this point, can you state whether or not you support the -- whether or not this administration continues to support the 1994 agreed framework?

SEC. POWELL: We are monitoring the agreed framework, and we've continued to support the 1994 agreed framework.

SEN. KERRY: So the administration will support the continuation of the shipments of fuel oil and construction of the light-water reactors?

SEC. POWELL: We will do so as we also, at the same time, review some concerns that exist with respect to how the light-water reactors might be used and what kind of supervision it will be under, and is that supervision adequate to the kinds of monitoring and verification regime we are interested in.

There are others who have also suggested that perhaps one might want to substitute different kinds of energy-generating capacity.

So for the moment we are in accord with the 1994 agreement, but that doesn't prevent us from looking at aspects of it that we might wish to revisit or change.

SEN. KERRY: Well, obviously the administration is -- can and obviously will make up its own mind as to sort of when it feels ready. I think, given the tensions with respect to China and the questions on the entire peninsula, the messages we send are awfully important in terms of whether we're sort of open to engagement. And if we start to -- I think you're free to raise anything you want at any time you want in the course of that, but I just -- I have a sense that we may be sending messages that are also subject to misinterpretation. In that vein I would ask you how you will react to the military expenditure increase in China, and likewise the issue -- my time is up, but the issue of whether or not you're satisfied with their answer with respect to the fiberoptic transfer to Iraq and how that fits in your picture of --

SEN. HELMS: The chair will allow time for you to answer this.

SEC. POWELL: Thank you, sir.

On Korea, I think the important message that came out of yesterday's meeting is that President Bush appreciated what President Kim Dae Jung has done with respect to opening that door, opening that window, as it is often referred to, and supports him and supports the additional things he's going to be doing this year with respect to that second summit, while at the same time we'll review what it is we plan to do with respect to our engagement with North Korea when we decide that it's the appropriate time to re-engage.

With respect to China, a 70 percent increase is probably leading to a 50 percent increase total -- in total over the next several years. We want to discuss with the Chinese the nature of this build- up. We are going to encourage them to have more transparency in what they do with their defense programs as we have transparency in ours. I don't view it as a break-out investment where suddenly China is on the march as an enemy, but it is, of course, something we have to look at carefully, make sure that we keep our forces in the region up to the best possible standard and we invest in them because we really are the balance wheel of stability in that part of the world.

With respect to the fiberoptics case, China has now said that they have told the companies that were in the area doing fiberoptics work to cease and desist. We're still examining whether or not it was a specific violation of the sanctions policy, and if it was we will call that to the attention of the Sanctions Committee so that they can take appropriate action with respect to China.

SEN. KERRY: Thank you, Mr. Secretary.

Thank you, Mr. Chairman.

SEN. HELMS: Senator Thomas.

SEN. CRAIG THOMAS (R-WY): Thank you, Mr. Chairman.

Welcome, Mr. Secretary.

SEC. POWELL: Mr. Thomas.

SEN. THOMAS: Let me say that I think it's very appropriate for you and the new administration to take a little pause in these issues, take a look at where we are. Times change, and I think we need to take a little shot at some of these things.

For instance, I'm very encouraged that we have some openings in North Korea. But I think we have to move fairly carefully and require some more confirmation that we're having something on the other side that occurs as we move, certainly to stay with our friends in South Korea and in Japan as we move forward.

I'm also one that won't quite join in the chorus for more and more money. I think a 5.3 percent increase is going to be more than most agencies have in this budget. And I would hope that, as is generally the case, you take a look at how it's managed now. We can look for different ways. Times have changed, and efficiencies, and so on.

How many total, full-time employees are there in the --

SEC. POWELL: If you add it all up with overseas, here in the United States, Foreign Service nationals, it approaches 40,000, roughly.

SEN. THOMAS: Forty thousand.

What was the dollars on Colombia? There were some commitments last year to billions of dollars. Where are we on that?

SEC. POWELL: One-point-three billion dollars was the U.S. contribution to Plan Colombia -- a roughly $7 billion program. The rest of the money being made up by European contributors, as well as Colombia's own contribution of close to $3 billion to the effort. Ours was principally for the helicopters and the training for the helicopters.

SEN. THOMAS: So there was a $7 billion effort?

SEC. POWELL: The overall program was intended to be 7 or 7.5 (billion dollars), as I recall, yeah.

SEN. THOMAS: So have the participants contributed all that money?

SEC. POWELL: No. There has been a shortfall, so far, with the European contribution. And the Colombians are still striving to make the contribution they promised to the program.

SEN. THOMAS: What's the status of appointments, in terms of undersecretaries and --

SEC. POWELL: You are looking at him, sir. (Laughter.)

SEN. THOMAS: That's what I was afraid of.

SEC. POWELL: We talked about this earlier. It's really the ethics and conflict-of-interest clearance that's taking the time, properly, to make sure that we put in place a team that is, you know, great, and there are no problems.

SEN. THOMAS: Yeah.

SEC. POWELL: And the chairman has given me his guarantee that as soon as I get them up here, he'll get them confirmed.

SEN. THOMAS: Have you had an opportunity to look at the Indonesia situation?

SEC. POWELL: Just recently I started to turn my attention there. It's a very troubling situation. And I think it's an area that isn't that well known in the United States, and the consequences of failure in Indonesia are very great not only for the region, but for the world.

SEN. THOMAS: I think they are. ASEAN -- much depends on it. I think you're right, it's been out of -- sort of out of the vision, but it's very important too, obviously.

Do you -- have you had a chance to -- with respect to the People's Republic of China and Taiwan, to have a position on the agreements that have been made, the communications that have been made with respect to Taiwan, the Taiwan agreements?

SEC. POWELL: Yes, sir, I have. Any specific agreement you have in mind, sir?

SEN. THOMAS: The communiques, joint communiques.

SEC. POWELL: I'm familiar with them.

SEN. THOMAS: Do you --

SEC. POWELL: I think we have a -- I think we will continue the policy that has existed for a number of years, the one-China principle. And that the ultimate resolution of how one China evolves is up to the parties in power and must not be imposed by force. They will have to deal with that amongst themselves over time. And we maintain our commitment to Taiwan to ensure that it has defensive means so that this democracy can feel secure behind its armed forces, while also in the knowledge that it has a friend in the United States.

SEN. THOMAS: Thank you, Mr. Chairman.

SEN. HELMS: Thank you, Senator.

Senator Feingold.

SEN. RUSSELL FEINGOLD (D-WI): Thank you, Mr. Chairman.

SEC. POWELL: Hi, Senator.

SEN. FEINGOLD: Secretary, it's good to have you here.

SEC. POWELL: Thank you.

SEN. FEINGOLD: And let me first compliment you on your comments on Iraq and the Iraq sanctions. My constituents will be very pleased to hear such a thoughtful series of ideas and comments about that policy.

SEC. POWELL: Thank you, sir.

SEN. FEINGOLD: Let me ask you about West Africa. There has been consistent bipartisan support in Congress for ending the cycle of impunity in West Africa and for holding those responsible for grave human rights abuses accountable for their actions. But when I was in Sierra Leone last month, I did hear a number of people say, Mr. Secretary, or voice concerns about the State Department's willingness to identify funds for the first year's commitment to the court.

Now, I do see that in your written remarks you make a reference to it. So if you could just assure me that this administration will commit to supporting the special court for Sierra Leone and also it's Truth and Reconciliation Commission?

SEC. POWELL: I think I can give you that commitment, Senator. But let me go back and find out what reticence may exist within the department.

SEN. FEINGOLD: Thank you.

And then, with regard to the Democratic Republic of Congo, Joseph Kabila's strange rise to power at least appears to have opened up new possibilities for peace in the DROC, but some observers have suggested that the United States may not actually want to see the Lusaka Accords implemented because we are unprepared to support a peacekeeping mission in this difficult region.

Can you assure me that that cynical view is inaccurate? And what steps is the United States willing to take to support peace in Central Africa?

SEC. POWELL: We support the Lusaka Accords. I met with President Kabila a few weeks ago, and also with President Kagame, and encouraged both of them to respect human rights, start to disengage their forces and get back to the process of peace to stop the suffering of the people in the Democratic Republic of the Congo.

I'm pleased to see that in recent weeks there has been some movement, some disengagement of forces, and some hope for the process to begin. And I noticed that Secretary-General Annan is now prepared to send in some peacekeepers. So we are prepared to back that, but we, at the moment, do not have a commitment, nor have we made a commitment to provide U.S. peacekeepers to such forces.

SEN. FEINGOLD: Fair enough. And I was not asking about actually providing U.S. peacekeepers, but our support for what the U.N. is attempting to do.

SEC. POWELL: Yes, sir.

SEN. FEINGOLD: Let me switch to Indonesia and East Timor, which Senator Thomas mentioned. More than a year after the 1999 violence in East Timor, the Indonesian government has not indicted a single person in connect with that violence, despite the fact that all the suspected organizers are in fact living in Indonesia, most of them in West Timor, Jakarta. Kofi Annan said, in January 2000, that the Indonesian courts would be give a chance to handle the cases first, but he did not rule out an international tribunal if the Indonesian judicial process proved not to be credible.

As a permanent member of the United Nations Security Council, will the United States push for an international tribunal on East Timor now that Jakarta's unwillingness or inability to prosecute anyone is really quite manifest?

SEC. POWELL: That's certainly an option. I think what I have to do on that one, Senator, is let me go back and study the ramifications and study the current state of play, and then you give a more definitive answer for the record.

SEN. FEINGOLD: I'd appreciate that.

Do you believe it's possible, with regard to China, for the United States to mobilize sufficient support at the commission in Geneva this year to overcome a Chinese-sponsored "no action" motion to prevent a debate on their human rights record? And what other measures will the United States take to press the Chinese on human rights in the year ahead?

SEC. POWELL: I press a Chinese interlocutor at every occasion. And I've met with the new ambassador and made sure that he understood that human rights will remain in a place of honor within U.S. foreign policy goals. And we're looking forward to the visit of the vice premier in a few weeks' time.

We will be aggressively pushing the resolution in Geneva. It will be tough. It will be very difficult. The situation is more difficult this year than it was last year. But we be giving it our every effort. We've just selected a delegation to represent us there of people who have strong views on human rights. And I'll be spending a good part of my time from the middle of March until the middle of April to press the case.

SEN. FEINGOLD: Thank you, Mr. Secretary.

Thank you, Mr. Chairman.

SEN. HELMS: Thank you, Senator.

Senator Frist.

SEN. BILL FRIST (R-TN): Thank you, Mr. Chairman.

Mr. Secretary, thanks for your leadership, your energy, your commitment to foreign service officers within the State Department. You just travel throughout Washington, you're running into people who reflect your -- and respect your commitment to them as foreign service officers, and their expertise and their skills.

I want to turn our attention briefly to what I regard as one of the most dangerous humanitarian, economic, and development crises of our time, and that is the global epidemic of AIDS, AIDS/HIV. The facts -- you know them well. They're sobering. AIDS kill 10 times the number of people in Africa than all of the armed conflicts combined.

In eight countries, at least one-third of all 15-year-olds today -- eight countries -- they will die of AIDS. I have a 15-year-old, and every time I look into his eyes and I think about this; I think of the 85 percent chance that he would die from that if he were in one country, Botswana.

Thirteen million orphans already, 40 million orphans over the next 10 years, all of this dramatically undermining the social structures and reversing economic development, wiping out a whole era of the most productive -- or people in the most productive years of their lives.

You look at Russia. They've seen the largest percent increase in AIDS case. They look at India. That has the largest number of HIV/AIDS cases in the world, as a country, today. The statistics go on and on.

David Gergen wrote recently, "The struggle against AIDS and related diseases in Africa represents one of the greatest moral tests of our time."

You put all that together, and we have no choice but to respond. It's the appropriate, it's the right thing to do. How we do it, where we do it in our government, what entity -- is it under your department, amidst the 40,000 people somewhere? It's clear we've got to have a focus, because the medical profession, the public health infrastructure, the pharmaceutical companies, our government, the NIH -- nobody can do it alone.

You have reached out from your very first briefings at State, in that first meeting in Africa, and starting long before that, have and are rapidly becoming and are, I guess -- already are an in-house expert on this overall challenge.

I'm delighted to see in the budget, which is the focus of our topic today, that the president's budget does provide increases to the Agency for International Development for activities to combat global HIV/AIDS -- a welcome development, and I look forward to working with you and the administration on the details.

The chairman and Senator Kerry and I and others on this committee put forth the Global Aid to Tuberculosis Relief Act of 2000, last year past. Congress doubled our foreign assistance appropriation for AIDS, all of which is real progress. More needs to be done in terms of funding. We need to redouble those efforts. But funding itself, as you well know, is only part of the solution. And it is going to take U.S. -- United States -- leadership of the president and other senior officials if we're going to really adequately deal and appropriately deal with this crisis. The foreign policy, the international economic implications of the AIDS epidemic demands high level engagement, and you are at that highest level. It's going to have to be by the Department of State, elsewhere in the administration possibly. A specific secretary-supported function might well serve to focus all of these U.S. foreign policy developments and would help coordinate the interagency efforts that are being made on behalf of labor, on behalf of health and human services, DOD, USAID as well as State, all of which have mandates and budgets.

And that really leads me to my question. How do you see the administration, and I guess more specifically the Department of State, dealing with what has to be a coordinated and focused approach in response to this international HIV-AIDS crisis?

SEC. POWELL: Thank you, doctor, and I agree with everything you said with respect to the nature of this crisis that is before the world. It is an economic crisis, a health crisis, a security crisis, it's the destruction of families, cultures, tribes, nations -- all of that is there. And the more time I spend on this, the worse it gets.

And one country that I know just slips you mind, one area where it's going to get even very, very more difficult is very close to home, and that's in the Caribbean --

SEN. FRIST: That's right.

SEC. POWELL: -- where the -- you know, it's really starting to pick up. And so all of that is true.

I am looking at how we are organized. I have taken one person, a trusted agent of mine, and said "This is your job. Find out how we are organized to battle against this within the department. Come forward, show me what we're doing," because it's everywhere. It's all over the place. "Show me where it is, how do I pull it together, how do I get it focused so that I can see it all the time." And then from that launching point I can then figure out how the rest of the administration should also join this in a very, very direct and coordinated way. I see the problem in the same terms you do, senator.

SEN. FRIST: Thank you, Mr. Secretary. I love working with you and look forward. So I think we can make real inroads about pulling the partnerships together.

SEC. POWELL: Thank you, sir.

SEN. HELMS: Senator Torricelli, last but not least.

SEN. ROBERT TORRICELLI (D-NJ): Thank you, Mr. Chairman, very much.

Mr. Secretary, welcome.

SEC. POWELL: Thank you.

SEN. TORRICELLI: I'd like, if I could, to present you with three issues and to -- with no thread through them, and then would you at the end respond to each of the three.

The first to raise with you, ironically, given that you are America's most famous soldier and I have never had the honor of wearing its uniform, we all feel very saddened by what happened with the Greeneville. It was a terrible tragedy with a needless loss of life. The President of the United States has apologized, the secretary of Defense has apologized, I know you have apologized, I think all Americans are very saddened.

I was surprised that added to the board of inquiry was a Japanese admiral.

If there was fault by American servicemen, I know they will be held accountable. Every American would expect no less. I believe the record of the United States for being responsible for our misdeeds has historically been very good. It is particularly good in comparison with some other nations that have not ever been accounted for their histories.

I believe this is a troubling precedent. And as much as I want to see justice done, I do not believe that American servicemen and women should ever be cannon fodder for dealing with a diplomatic problem. I do not know if there is precedent for such actions, but I believe it is a troubling situation and casts some questions of credibility on the outcome of these proceedings, given that there was a foreign national who was participating, even if on a nonvoting basis.

I leave that with you and would invite your response.

On two other issues, Senator Hagel noted that we are clearing the underbrush in dealing with American sanctions. I think we all recognize that in the Congress's intentions that there be no American financing of exports to Cuba -- this, of course, not being the underbrush, but a virtual giant redwood -- I assume we have nothing to fear from the administration revisiting that issue. The Congress has been clear that while there would be food exports, we would not use American taxpayers' dollars to help underwrite the Castro government.

And finally, while otherwise pleased with the beginning weeks of the foreign policy of the Bush administration, I would like some clarification of the joint press conference with Tony Blair, in which the president said, and I quote, "I'm going to wait and be asked by the prime minister" with reference to America involvement in the peace process in Northern Ireland. I would hope the administration would be considering having an envoy to succeed Senator Mitchell and have the Unite States fully engaged in that process, because I believe that we have been so helpful.

And while I promised that was my last point, I simply want to identify myself with Senator Kerry's comment with regard to the North Korean arrangements from 1994. I think the promise is so great with that rather peculiar regime for a breakthrough -- at least there is a potential -- that our credibility must remain paramount. So, while any issue can be revisited on a mutual basis, I hope there will be every effort to make sure that we keep to the letter of the agreement on the '94 understanding with the North Koreans so they can provide a framework for going forward to other and even more important arrangements.

SEC. POWELL: On your first point -- thank you, Senator. On the first point, the Greeneville, from my own experience, and knowing nothing about how they formed that court of inquiry, I'm absolutely sure that any accountability or any judicial action or any non- judicial, administrative, action that would come from this would be solely in the hands of American officers and not the Japanese admiral. His exact status there, I really think I need to provide an answer for the record from the secretary of Defense and not me speculate on his --

SEN. TORRICELLI: Could I, Mr. Secretary -- can we be assured, however, that this judgment was reached by the military alone, without State Department or other U.S. government involvement, by the U.S. --

SEC. POWELL: I --

SEN. TORRICELLI: -- (inaudible) -- the Japanese admiral?

SEC. POWELL: I will ask the secretary of Defense how that judgment was reached. I was never involved in it, and I don't think any of my staff were involved in it; or if they were, they didn't tell me about it. We would not have pressed the case in that way.

But we will give you a complete answer for the record.

We are not reviewing our policies with respect to exports to Cuba.

And on the third point, Northern Ireland envoy, we are following the developments very closely and identifying somebody in my department who will take this on as a primary additional duty and be ready to serve in a communication role and keep us in touch with what's going on. Not clear yet whether we think there will be a need for somebody like a George Mitchell, but that certainly is something we can keep under advisement if the situation moves in a way that suggests it takes that kind of high-level special envoy involvement.

SEN. TORRICELLI: Thank you.

Thank you, Mr. Chairman.

SEN. HELMS: Mr. Secretary, you've done well.

SEC. POWELL: Thank you, sir.

SEN. HELMS: It's always good to see you. And --

SEN. BIDEN: Mr. Chairman, may I have 30 seconds before you close?

SEN. HELMS: Sure.

SEN. BIDEN: Not even that.

Is it appropriate that we can submit some questions in writing?

SEN. HELMS: Do you want to bring that -- I think you expected that.

SEC. POWELL: Yes, sir.

SEN. HELMS: We have a lot of committee meetings working on crucial things; otherwise, there would have been a 100 percent attendance this morning. And I'm sure that there's going to be a lot of questions filed for you in writing, and I know you'll respond to them forthwith.

Let me say that I appreciate the administration's strong comments opposing the International Criminal Court. And I will have further comment with you about that.

In general, it's been good to have you with us this morning. And if there be no further business to come before the committee, we stand in recess.

SEC. POWELL: Thank you, sir.

SEN. HELMS: Thank you, sir.

END

LOAD-DATE: March 9, 2001




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