INTERNATIONAL DEVELOPMENT AND HUMANITARIAN ASSISTANCE PROGRAMS

There are certain development and humanitarian assistance activities under the jurisdiction of the Committee on International Relations which are authorized for fiscal year 1976 or subsequent fiscal years, but which are unlikely to be fully funded during fiscal year 1976. Some of these items are likely to be funded instead, in whole or in part, during the transition quarter.

International Fund for Agricultural Development (IFAD)

The International Fund for Agricultural Development is a multilateral fund to help developing countries in the field of agriculture. Under an agreement recently negotiated among potential donor countries, the Secretary General of the United Nations is to convene a meeting for the purpose of signing Articles of Agreement after he is notified of pledges to the Fund amounting to at least $1 billion. The notifications are hoped for by mid-April, with a signing meeting to be called in May.

The United States expects to pledge $200 million, as authorized in the International Development and Food Assistance Act of 1975. Following the signing, the Articles of Agreement will come into force (and the Fund will be established) upon deposit of instruments of ratification totaling at least $750 million. The instruments of ratification must be deposited within 18 months of signing.

The administration expects to request appropriation of the U.S. contribution following the signing of the Articles of Agreement and to have the funds in hand before depositing an instrument of ratification.

Under these circumstances, while the need for a U.S. contribution within several months after a signing meeting seems likely, it appears entirely probable that the contribution will not be both requested by the President and appropriated by the Congress before the end of fiscal year 1976. Yet the President's fiscal year 1977 budget shows $200 million of budget authority for the Fund in fiscal year 1976, rather than in the transition quarter.

Therefore, the committee urges the Committee on the Budget to include the $200 million U.S. contribution to the Fund within the ceiling established for the transition quarter.

Indus Basin Development, Loans and Grants

The Indus Basin project, begun in 1960 and scheduled for completion in 1976, is a construction program to insure an equitable disivion of the waters of the Indus Basin between India and Pakistan. It will help provide arable land for over 50 million people in those countries.

The United States participates in this project as part of a multilateral consortium administered by the World Bank. Under the international agreements through which the project is financed and implemented, the United States and the other donor countries have pledged to contribute funds as needed to carry out the project.

The final U.S. contribution of loans-amounting to $10 millionwas requested in fiscal year 1976. However, the Foreign Assistance and Related Programs Appropriations Bill passed by the House on March 4 contains $5 million for Indus Basin loans.

If the final appropriation for fiscal year 1976 is less than $10 million, the balance will be needed during the transition quarter and should be included in the ceiling.

With respect to grants, the President requested and the Congress passed an authorization of $27 million for the final U.S. contribution of grants for Indus Basin development. Of that amount, the President requested appropriation of $22.5 million in fiscal year 1976 and the remaining $4.5 million in the transition quarter. Instead, the Housepassed appropriation bill contains $9 million for fiscal year 1976 and $2.25 million for the transition quarter.

If the final appropriation for fiscal year 1976 is less than $22.5 million, the balance will be needed during the transition quarter and should be included in the ceiling.

Cyprus Relief and Rehabilitation

According to AID, approximately 200,000 Cypriots remain dependent on relief funds for their subsistence.

Accordingly, the President requested $25 million for relief and rehabilitation aid for Cyprus. The foreign assistance appropriation bill passed by the House contained $25 million for fiscal year 1976 and $5 million for the transition quarter for this purpose.

However, this committee, believing the need for this type of assistance on Cyprus to be considerably greater, included an authorization of $50 million in the International Security Assistance Act of 1976, which passed the House on March 3. This authorization was not restricted to fiscal year 1976.

Therefore, if the final authorization for Cyprus relief and rehabilitation exceeds the final amount appropriated for that purpose for fiscal year 1976, the remaining amount authorized but unappropriated should be included in the ceiling for the transition quarter.

INTERNATIONAL SECURITY ASSISTANCE PROGRAMS

Both House and Senate versions of the fiscal year 1976 authorization for security assistance programs contain an authorization ceiling for the transition quarter of "not to exceed" one-fourth of the amounts authorized for each program and activity in fiscal year 1976. If fully appropriated, the one-fourth formula would permit an appropriation of $864.74 million for the transition quarter.

The committee recommends, therefore, that the transition quarter budget authority ceiling for the international affairs function (150) be raised from the current target of $1 billion to $1.25 billion, with an appropriate increase in the outlay ceiling. The increase would be applied to security supporting assistance programs.

PART III

TABLE OF ESTIMATES FOR FISCAL YEAR 1977

Program and budget function

Middle East Special Requirements Fund (150).

International narcotics control (150)..

Department of State:

Administration of foreign affairs (150).

Educational exchange (150).

International organizations and conferences (150)

Migration and refugee assistance (150).

68, 500

60, 681

60, 681

0

Foreign buildings operations (150).

(1)

10,000

10,000

10, 693

Passport Office (150).

Foreign service retirement amendments (150).

2,000

+2,000

2,000

Soviet refugee assistance (150).

------

14,000

+14,000

14,000

United States Information Agency:

USIA salaries and expenses (150)

USIA radio facilities (150)..

USIA special international exhibitions (150) .

International commissions (300)..

Board for International Broadcasting (150).