Kissinger Commission Implementation: Actions by the Congress Through 1986 on the Recommendations of the National Bipartisan Commission of Central America

Report No. 57-291 F KISSINGER COMMISSION IMPLEMENTATION: ACTION BY THE CONGRESS THROUGH 1986 ON THE RECOMMENDATIONS OF THE NATIONAL BIPARTISAN COMMISSION ON CENTRAL AMERICA K. Larry Storrs Analyst in Latin American Affairs Foreign Affairs and National Defense Division March 7, 1987 T h e Congressional Research S e n i c e works exclusi\elv for the Chngress, conducting research. anah zing legislation, a n d providing information at the request of committees. Members. and their staffs. T h e Senice makes such research available, without partisan bias. in manv forms including studies. reports. compilations. digests. and background briefings. Upon request. CRS assists committees in analyzing legislative proposals and issues, and in assessing the possible effects of these proposals and their alternatives. T h e Service's senior specialists a n d subject analysts are also available for- personal consultations in their respective fields of expertise. AB STRACT This r e p o r t summarizes t h e implementation by t h e Congress of t h e p o l i c y recommendat i o n s made i n J a n u a r y 1984 by t h e N a t i o n a l B i p a r t i s a n Commission on C e n t r a l America, t h e s o - c a l l e d " K i s s i n g e r Commission .I' I t i n d i c a t e s , i n g e n e r a l , t h a t Congress h a s supported t h e Commission's major recommendat i o n s through 1986, a l t h o u g h t h e a l l o c a t i o n s of a i d f e l l below Commission t a r g e t s , l a r g e l y t o meet budget r e d u c t i o n g o a l s , and s u p p o r t f o r a i d t o t h e a n t i - S a n d i n i s t a " c o n t r a s " appeared t o d i m i n i s h i n e a r l y 1987. Editorial assistance provided by Alice Elder and Paul Graney. CONTENTS ...................................................................iii INTRODUCTION AND SUMMARY................................................... 1 ABSTRACT THE ECONOMIC AND POLITICAL-SECURITY CHALLENGES IDENTIFIED BY THE COMMISSION 2 CONGRESSIONAL ACTION ON THE COMMISSION'S RECOMMENDED SHORT-TERM PROGRAM FOR DEALING WITH THE CKALLENGES Provide $400 Million in Supplemental Economic Assistance Significantly Increase Military Aid to El Salvador and Honduras 3 3 3 ............................................ ............. ....... CONGRESSIONAL ACTION ON THE COMMISSION'S RECOMMENDED MEDIUM-TERM PROGRAM FOR DEALING WITH THE ECONOMIC CHALLENGE Greatly Increase U.S. Economic Assistance Over Five Years (FY85-FY89) Provide Multi-Year Authorization Channel One-Quarter of U.S. Aid Through Central American Development Organization (CADO) Expand Trade Opportunities and Encourage Improved Investment Conditions Encourage Accelerated Agricultural Development Expand Human Development Programs .................................... ........................................................ ...................................... .................................... 4 4 8 9 ......................................................... 9 ........................ 11 ..................................... 11 CONGRESSIONAL ACTION ON THE COMMISSION'S RECOMMENDATIONS FOR DEALING WITH THE POLITICAL-SECURITY CHALLENGE Provide Increased Military Aid to El Salvador Make Military Aid to El Salvador Contingent Upon Human Rights Progress Provide Military Assistance to Guatemala Under Strong Human Rights Conditions Provide Increased Military Assistance to Honduras Provide Support for an Administration of Justice Program and End Prohibition on Police Assistance Encourage a Comprehensive. Verifiable Settlement in the Region Using a Carrot-and-Stick Approach ..................................... ........................ .......................................................... ................................................. .................... .............................. ................................ THE ADHINISTRATION'S MARCH 1987 REPORT AND PLAN FOR FULLY FUNDING THE COMMISSION'S RECOMMENDATIONS .......................................... 12 12 13 16 17 17 19 21 TABLES Table 1 .U.S. Economic Assistance Fiscal Years 1985. 1986. and 1987 .................................. Table 2 .U.S. Development Assistance to Central America by Functional Accounts and ESF Funding. FY84-FY87 ................................ 7 10 KISS I N G E R COMMISSION IMPLEMENTATION: ACTION BY THE CONGRESS THROUGH 1986 ON THE RECOMMENDATIONS OF THE NATIONAL BIPARTISAN COMMISSION ON CENTRAL AMERICA INTRODUCTION AND SUMMARY T h i s r e p o r t summarizes t h e a c t i o n s by t h e Congress through 1986 t o implement t h e 1984 recommendat i o n s of t h e N a t i o n a l B i p a r t i s a n Commission on C e n t r a l America, common1y c a l l e d t h e " K i s s i n g e r Commission." It complements s e v e r a l s i m i l a r r e p o r t s by t h e Department o f S t a t e , i n c l u d i n g t h e A d m i n i s t r a t i o n ' s March 1987 r e p o r t and p l a n f o r It f u l l y funding t h e recommendations of t h e K i s s i n g e r Commission. provides a b a s i s f o r considering the Administration's request f o r supplemental FY87 funding and t h e r e q u e s t f o r r e g u l a r FY88 funding 21 f o r C e n t r a l America. The 12-member Commission, c h a i r e d by former S e c r e t a r y o f S t a t e Henry A. K i s s i n g e r , was appointed by P r e s i d e n t Reagan i n J u l y 1983 and was charged with t h e t a s k of recommending a long-range U.S. p o l i c y toward C e n t r a l America t h a t would command b i p a r t i s a n s u p p o r t . The Commission p r e s e n t e d i t s Report t o t h e P r e s i d e n t on J a n u a r y 10, 1984, a f t e r s i x months of s t u d y , h e a r i n g s and t r a v e l . 31 Following t h e r e p o r t , t h e P r e s i d e n t , i n February 1984, proposed -the "Central America Democracy, Peace and Development I n i t i a t i v e Act of 1984" t o 11 T h i s i s a s l i g h t l y r e v i s e d and updated v e r s i o n o f a s i m i l a r CRS r e p o r t i s s u e d on September 26, 1986. 21 See " S u s t a i n i n g A C o n s i s t e n t P o l i c y i n C e n t r a l America: One Year A f t e r t h e National B i p a r t i s a n Commission Report ," S p e c i a l Report No. 124, A p r i l 1985 ( h e r e a f t e r a s c i t e d State--April 1985) ; " C e n t r a l America's Development ," A p r i l 1986 ( h e r e a f t e r c i t e d a s S t a t e - - A p r i l 1986); "The U.S. and C e n t r a l America: Implementing t h e N a t i o n a l B i p a r t i s a n Commission Report," S p e c i a l Report No. 148, August 1986 ( h e r e a f t e r c i t e d a s State--August 1986); and "Report t o t h e P r e s i d e n t and t h e Congress on a Plan f o r F u l l y Funding t h e Recommendations o f t h e National B i p a r t i s a n Commission on C e n t r a l America, b y t h e Secret a r y of S t a t e , t h e A d m i n i s t r a t o r of t h e Agency f o r I n t e r n a t i o n a l Development, and t h e D i r e c t o r of t h e O f f i c e o f Management and Budget," Department of S t a t e S p e c i a l Report No. 162 ( h e r e a f t e r c i t e d a s S t a t e --March 1987). L a t t e r r e p o r t a l s o i n House Document 100-42. See p. 21, f o o t n o t e 33. 31 See "Report of t h e National B i p a r t i s a n Commission on C e n t r a l America, January 1984" ( h e r e a f t e r c i t e d a s K i s s i n g e r ) . implement the Commission's recommendations, and since then has submitted additional authorization and appropriation proposals for congressional consideration. This report does not deal in detail with the Commission's analysis, nor does it cover all of the numerous recommendations made by the Commission. 41 It identifies only the major recommendations of the Commission a;;h indicates the extent to which the Administration's proposals for implementation have been adopted by the Congress through 1986. The report finds that Congress provided practically all of the supplemental economic assistance requested for FY84 and 82 percent of the economic assistance requested for FY85, FY86, and FY87. It finds that Congress initially limited the amount of supplemental military aid for El Salvador, but essentially approved the Administration's military aid requests for FY85, FY86, and FY87 following the election of Jose Napoleon Duarte as President of El Salvador. While human rights conditions on aid to Guatemala meet the Commission's recommended standards, the current conditions on aid to El Salvador seem to be softer than recommended by the Commission. The report finds, in keeping with the Commission's recommendations, that Congress approved the multi-year authorization of economic assistance, the establishment of a Central American Development Organization, and the use of U.S. assistance, under certain conditions, for land reform programs and law enforcement agencies in the region. It finds that Congress approved increased military aid to Honduras and Guatemala, and, after initial resistance, approved humanitarian and military aid to the anti-Sandinista rebels ("contras") in Nicaragua for the purpose, in part, of encouraging a Contadora-type settlement in the region, as recommended by the Commission. In short, the report finds that Congress generally supported the Cormnission's main recommendations, but, with recent overall cutbacks in foreign assistance to meet deficit reduction goals, funding fell below Commission targets. THE ECONOMIC AND POLITICAL-SECURITY CHALLENGES IDENTIFIED BY THE COMMISSION This report is organized around the two main challenges identified by the Commission: (1) the economic challenge (primarily the poverty, social injustice, and drastically declining economic growth rates in the Central American countries), and (2) the politicalsecurity challenge (~rimarily the insurgencies supported by Cuba, 41 See U.S. Library of Congress, Congressional Research Service, "A skunary and Analysis of the Report of the National Bipartisan 'Kissinger' Commission on Central America, January 1984,'' 84-39 F, by Richard P. Cronin and K. Larry Storrs for summary and analysis of the report. Nicaragua, and the Soviet Union against governments in the region whose legitimacy is under attack). According to the Commission, these were the two challenges that had to be addressed in order to ameliorate the crisis in Central America. The Commission offered immediate short-term recommendations as well as medium- or long-term recommendations. CONGRESSIONAL ACTION ON THE COMMISSION'S RECOMMENDED SHORT-TERM PROGRAM FOR DEALING WITH THE CHALLENGES Provide $400 Million in Supplemental Economic Assistance In order to respond immediately to the economic crisis in Central America, the Commission recommended that the United States provide $400 million in supplemental economic assistance for Central America. 5/ To implement this recommendation, the Administ rat ion, in ~ebruar~-1984, requested about $400 million in economic aid and related assistance. This request included $290.5 million in Economic Support Funds and $73 million in Development Assistance, but it also included $25 million in P.L. 480 "Food for Peace" funding, although this form of aid is handled through different processes and no additional authorization or appropriation was necessary. In addition, the $400 million request included $11.5 million for the State Department, USIA, and the Peace Corps, most of which would not ordinarily be considered foreign assistance. Acting through two supplemental appropriations, the Congress essentially approved all of the supplemental economic assistance for the region requested by the Administration. As a result, the Administration was able to allocate $290.5 million in ESF funding, $65.7 million in Development Assistance, $11.5 million for the State Department, the Peace Corps, and AID operating expenses in the region, and was able to increase Food for Peace funding for FY84 by about $23.6 million over the originally projected FY84 target, making a grand total of $391.3 6/ in supplemental FY84 economic aid for Central America. Significantly Increase Military Aid to El Salvador and Honduras To deal with the security threat that prompted the Commission's format ion, particularly the guerrilla threat in El Salvador, the Commission recommended a significant immediate increase in military assistance, primarily for El Salvador and Honduras. While the Commission did not recommend a specific amount for any country, it noted, 51 - See Kissinger, p. 46-50. 6/ See State--April 1985, p. 18; and State--August 1986, p. 26-27. ~ i ~ u r ein s table vary from total in this paper because no P.L. 480 funding is allocated to supplemental FY84. w i t h r e g a r d t o El S a l v a d o r , t h a t t h e Department o f Defense had e s t i mated t h a t " i t would t a k e a p p r o x i m a t e l y $400 m i l l i o n i n U.S. m i l i t a r y a s s i s t a n c e i n 1984 and 1985 t o b r e a k t h e m i l i t a r y s t a l e m a t e and a l l o w t h e N a t i o n a l Campaign P l a n t o b e c a r r i e d o u t . " 71 To implement t h e s e recommendations, t h e A d m i n i s t r a t i o n , i n ~ e b r u a r ~ - 1 9 8 4 ,r e q u e s t e d $259.1 m i l l i o n i n s u p p l e m e n t a l FY84 g r a n t M i l i t a r y A s s i s t a n c e Program f u n d s , w i t h $178.7 m i l l i o n , n e a r l y 70 p e r c e n t of t h e t o t a l , b e i n g While t h e Commission's recommendation designated f o r E l Salvador. w i t h r e g a r d t o E l S a l v a d o r i s n o t e n t i r e l y c l e a r , t h e $178.7 m i l l i o n i n s u p p l e m e n t a l FY84 funds and t h e $132.5 m i l l i o n i n FY85 m i l i t a r y a s s i s t a n c e , b o t h r e q u e s t e d i n F e b r u a r y 1984, combined with t h e prev i o u s FY84 a p p r o p r i a t i o n o f $64.8 m i l l i o n , g i v e s a combined t o t a l f o r f i s c a l y e a r s 1984 and 1985 o f $376 m i l l i o n . T h i s was f a i r l y c l o s e , under o n e i n t e r p r e t a t i o n , t o t h e Commission's recommendation. Congress r e s i s t e d t h e i n c r e a s e i n m i l i t a r y a i d f o r C e n t r a l America, p a r t i c u l a r l y t h e l a r g e i n c r e a s e i n a i d t o El S a l v a d o r . Acting t h r o u g h two s u p p l e m e n t a l m e a s u r e s , t h e Congress s p e c i f i c a l l y l i m i t e d s u p p l e m e n t a l FY84 m i l i t a r y a i d t o El S a l v a d o r t o $131.8 m i l l i o n , r a t h e r t h a n t h e $178.7 m i l l i o n r e q u e s t e d . For t h e e n t i r e r e g i o n i t a p p r o p r i a t e d $201.75 m i l l i o n i n s u p p l e m e n t a l FY84 m i l i t a r y a s s i s t a n c e , r a t h e r t h a n t h e $259 m i l l i o n r e q u e s t e d , p r o v i d i n g a b o u t 78 p e r c e n t o f t h e A d m i n i s t r a t i o n ' s r e q u e s t f o r m i l i t a r y a i d . In t h e e n d , t h e ~ d m i n i s t r a t i o n a l l o c a t e d o n l y $183.25 i n s u p p l e m e n t a l FY84 m i l i t a r y a s s i s t a n c e t o t h e r e g i o n , w i t h t h e maximum o f $131.8 m i l l i o n g o i n g t o El S a l v a d o r . 8 / - CONGRESSIONAL ACTION ON THE COMMISSION' S RECOMMENDED MEDIUM-TERM PROGRAM FOR DEALING WITH THE - - -ECONOMIC CHALLENGE G r e a t l y I n c r e a s e U . S . Economic A s s i s t a n c e Over F i v e Years ( ~ ~ 8 5 - ~ ~ 8 9 ) To d e a l w i t h t h e medium-term economic c h a l l e n g e s of t h e r e g i o n , t h e Commission recommended a t o t a l o f $8 b i l l i o n i n economic a s s i s t ance over a five-year period, i n c l u d i n g " d i r e c t a p p r o p r i a t i o n s a s w e l l a s c o n t i n g e n t l i a b i l i t i e s s u c h a s g u a r a n t e e s and i n s u r a n c e , " r e p r e s e n t i n g " a rough d o u b l i n g of U.S. economic a s s i s t a n c e from t h e 1983 l e v e l .I' 9/ While t h e Commission was n o t p r e c i s e i n recommending t h e amount o r e c o n o m i c a s s i s t a n c e , when t h e A d m i n i s t r a t i o n s u b m i t t e d a p r o p o s a l , i n F e b r u a r y 1984, t o implement t h e Commission's recommenda t i o n s , i t r e q u e s t e d a b o u t $6 b i l l i o n i n d i r e c t a p p r o p r i a t i o n s ( i . e . , $ 1 . 2 b i l l i o n p e r y e a r ) , and $2 b i l l i o n i n i n s u r a n c e and g u a r a n t e e a u t h o r i t y . S i n c e t h e n i t h a s b e e n c o n v e n t i o n a l wisdom t o c o n s i d e r t h a t t h e Commission recanmended $ 1 . 2 b i l l i o n p e r y e a r i n economic and -71 K i s s i n g e r , p. 101-102. 91 - Ki s s i n g e r , p. 53. related assistance to Central America. On that ground, this standard is used here to measure the congressional response in the last two years. It is important to note that there is no easy way to determine the exact amount appropriated by Congress for the Central American region. Generally the Congress makes appropriations for worldwide programs, without indicating the exact amount for each country or region. The Administration has considerable discretion in allocating the funds within the established worldwide levels. It is also worth noting that reductions in the President's requests were generally made in the context of a general budget reduction program, not explicitly because of disagreement with aid to Central America. Congressional action in meeting Commission targets for fiscal years 1985, 1986, and 1987 is summarized in Table 1. The action is explained in more detail in the paragraphs that follow. In early 1984, following the Commission's recommendations, the Administration proposed the "Central America Democracy, Peace and Development Initiative Act" which, along with the request for FY84 supplemental funds previously discussed, called for a total of $1.11 billion in FY85 economic assistance to the region, with the breakdown by program indicated in Table 1. While Congress failed to complete action on a foreign aid authorization measure in 1984, FY85 funds were appropriated for Central America in section 101 of the Continuing Appropriations Act, 1985 (P.L. 98-473), approved in October 1984. As one State Department publication pointed out, "Congress approved almost all of the funds requested by the Administration for FY 1985 in support of the Commission recommendations." 10/ In the end, the Administration allocated $973 million in e c o n o m F and related assistance to Central America for FY85, about 88 percent of the request for $1.1 billion. The shortfall from the Commission's presumed goal of $1.2 billion in economic assistance would be about $227 million, of which nearly $100 million had not been requested by the Administration. In early 1985, as part of the regular budget request process, the Administration requested a total of $1.05 billion in FY86 economic and related assistance for Central America, with more than half of the aid in ESF funding, as indicated in Table 1. The Congress acted on the President's general foreign aid request in authorization and appropriation measures, and in both cases it provided less assistance on a worldwide basis than the President requested, causing a reduction in the allocation of funds to all regions, including Central America. Still later, additional across-the-board cuts were required by the passage of the Gramm-Rudman-Hollings Deficit Reduction Act. Congress authorized economic assistance to Central America f o r FY86 and FY87 t h r o u g h t h e I n t e r n a t i o n a l S e c u r i t y and Development C o o p e r a t i o n Act o f 1985 (IS & DC, 1 9 8 5 ) , p a s s e d i n J u l y 1985, and s i g n e d i n t o l a w (P.L. 99-83) i n August 1985. S e c t i o n 701 o f t h e b i l l added a new c h a p t e r , e n t i t l e d t h e " C e n t r a l America Democracy, P e a c e , and Development I n i t i a t i v e ," t o t h e F o r e i g n A s s i s t a n c e Act o f 1961. Congress a p p r o p r i a t e d FY86 economic a s s i s t a n c e funds f o r C e n t r a l America t h r o u g h s e c t i o n 1 0 1 ( j ) o f t h e C o n t i n u i n g Appropria t i o n s A c t , 1986, approved and s i g n e d i n t o l a w ( P . L . 99-190) in December 1985. Out o f c o n c e r n f o r r e s e r v i n g f u n d i n g f o r programs i n A f r i c a , t h e Congress s p e c i f i e d i n t h e a p p r o p r i a t i o n t h a t n o t more t h a n $250 m i l l i o n i n Development A s s i s t a n c e c o u l d be a l l o c a t e d t o C e n t r a l America e x c e p t t h r o u g h reprogramming p r o c e d u r e s . A f t e r t a k i n g i n t o a c c o u n t t h e worldwide r e d u c t i o n i n a s s i s t a n c e l e v e l s and t h e r e q u i r e d c u t s mandated by t h e Gramm-Rudman-Hollings D e f i c i t Reduction A c t , t h e A d m i n i s t r a t i o n was a b l e t o p r o v i d e a t o t a l o f $893 m i l l i o n i n economic and r e l a t e d a s s i s t a n c e t o C e n t r a l America f o r FY86, a b o u t 8 5 p e r c e n t o f t h e r e q u e s t f o r $1.05 b i l l i o n . 111 The s h o r t f a l l from t h e g o a l o f $ 1 . 2 b i l l i o n p e r y e a r , s e t b y t h e C o m m i s s i o n , would b e about $307 m i l l i o n , of which about $150 m i l l i o n had not been requested by t h e Administration. In e a r l y 1986, t h e A d m i n i s t r a t i o n r e q u e s t e d a t o t a l o f $1.14 b i l l i o n i n FY87 economic and r e l a t e d a i d f o r C e n t r a l America, w i t h t h e program breakdown i n d i c a t e d i n Table 1. This i n c r e a s e i n a s s i s t a n c e was r e q u e s t e d i n p a r t t o make up f o r t h e r e d u c t i o n s i n FY86 a i d r e q u i r e d by t h e Gramm-Rudman-Hollings A c t . By mid-year 1986, t h e A d m i n i s t r a t i o n i n d i c a t e d a c o n c e r n w i t h t h e s h o r t f a l l i n economic a s s i s t a n c e l e v e l s f o r C e n t r a l America, 121 p a r t i c u l a r l y when i t a p p e a r e d t h a t FY87 l e v e l s would b e even l o w e r , i n l a r g e p a r t t o a c h i e v e b u d g e t r e d u c t i o n t a r g e t s mandated by t h e Congress. Simultaneously, i n connection with c o n s i d e r a t i o n o f t h e A d m i n i s t r a t i o n ' s r e q u e s t f o r $100 m i l l i o n i n m i l i t a r y and h u m a n i t a r i a n a s s i s t a n c e t o the anti-Sandinista r e b e l s ("contras") i n Nicaragua, a number o f Members f e l t t h a t i t was n e c e s s a r y t o i n c r e a s e a s s i s t a n c e t o t h e d e m o c r a t i c c o u n t r i e s i n t h e r e g i o n . As a r e s u l t , t i t l e I1 o f t h e M i l i t a r y C o n s t r u c t i o n A p p r o p r i a t i o n s B i l l (H. R. 50521, a s passed b y t h e House i n J u n e 1986 and b y t h e S e n a t e i n August 1986, p r o v i d e d $300 m i l l i o n i n ESF a s s i s t a n c e f o r Costa R i c a , E l S a l v a d o r , Guatemala and Honduras t o b e t r a n s f e r r e d from u n o b l i g a t e d FY86 f u n d s , p r i m a r i l y f o r A f r i c a famine r e l i e f . Moreover, t h e b i l l r e q u i r e d r e l e v a n t A d m i n i s t r a t i o n o f f i c i a l s t o r e p o r t t o Congress no l a t e r t h a n March 1, 1987, on a p l a n f o r " f u l l y funding" a s s i s t a n c e t o C e n t r a l America i n keeping w i t h t h e recommendations o f t h e K i s s i n g e r Commission. Assuming t h e b i l l had b e e n e n a c t e d i n t o law i n t i m e , i t would have b r o u g h t economic a s s i s t a n c e f u n d i n g l e v e l s f o r C e n t r a l America d u r i n g f i s c a l y e a r s 1985 and 1986 t o o v e r 90 p e r c e n t o f t h e amounts r e q u e s t e d . 111 - State--April 1986, and State--August 1986, p . 26-27. 121 A I D FY87 C o n g r e s s i o n a l P r e s e n t a t i o n f o r L a t i n America, p. 3 6 ; and ~ G t e - - ~ u ~ u 1986, st p. 4 . However, the Military Construction Bill incorporated as section 101 (k) of the omnibus Continuing Appropriations Act for FY87 (H.J. Res. 738), was not approved and enacted into law (P.L. 99-500, P.L. 99-591) until mid-October 1986. While the section provided that at least $100 million of the Central American assistance was to be obligated in FY86, the late passage of the Continuing Resolution -following the expiration date of the 1986 fiscal year -- prevented the obligation of any funds in that year. The regular Foreign Aid Appropriations Act for FY87 was contained in section 101 (f) of the omnibus Continuing Resolution passed by Congress and signed into law in mid-October 1986. It set worldwide aid at $13.37 billion, considerably below the $15.47 billion requested by the Administration for FY87. Since amounts for certain aid recipients (Israel, Egypt, Pakistan) were earmarked at or near Administration request levels, the shortfall for other recipients, including the Central American democracies, was significant, especially in Economic Support Funds. Moreover, the Act specified that the $300 million provided through the Military Construction Appropriation would be included within the established overall limits for FY87 assistance. Taking into account the reduced aid levels and the earmarkings for certain countries, the Administration allocated $826 million in economic and related aid to the region, about 73 percent of the request for $1.14 billion. Largely as a result of these reductions, the Administration, in early 1987, requested $300 million in supplemental FY87 funds for Central America -- $100 million in disaster assistance for El Salvador in connection with the October 1986 earthquake, and $200 million in ESF funds for the Central American democrac ies . Looking back at congressional support for economic assistance in Central America, the Congress has clearly given considerable support for Commission recommendations during fiscal years 1985, 1986, and 1987, despite overall budgetary constraints and shrinking foreign aid budgets. Summarizing the tabulations in Table 1, the appropriations enacted through 1986 for fiscal years 1985, 1986, and 1987, along with the funds appropriated in the FY84 supplemental, total $3.083 billion for Central America. This would produce a shortfall of $917 million from the Commission's presumed target of $400 million in the FY84 supplemental and $1.2 billion per year in subsequent years, but, as the table demonstrates, the Administration has never requested adequate funds to fully meet the Commission's targets. Provide Multi-Year Authorization To demonstrate a long-term commitment to the region, the Kissinger Commission recommended a five-year authorization for economic assistance. 13/ While authorizing committees resisted this idea in 1984, the fozign aid authorization measure (P.L. 99-83), passed in 131 - Kissinger, p. 53. 1985, authorized funds for two years, fiscal years 1986 and 1987, and section 701 of the Act contains a separate authorization of $1.2 billion per year in non military assistance for two additional years, fiscal years 1988 and 1989. In essence, the Congress provided the multi-year authorization requested. Channel One-Quarter of U.S. Aid Through Central American Development Organization (CAD01 To encourage regional dialogue and self-determination in setting development goals, the Commission recommended the creation of a Central American Development Organization (CADO) through which one141 quarter of U.S. assistance would be channeled. Congress expressed support for this recommendation in section 701 of the International Security and Development Cooperation Act of 1985 (P.L. 99-83). This states the sense of Congress that the President should enter into negotiations to establish a Central American Development Organization and should follow the Organization's recommendations to the maximum extent practicable, disbursing no more than 75 percent of U.S. assistance until the Organization's recommendations are made final. In short, it recommended, in keeping with the Commission's recommendations, that 25 percent of U.S. assistance be channelled through CADO. Furthermore, in the Military Construction Appropriation Bill (H.R. 5052), passed by both Houses, the 99th Congress, in conjunction with the approval of $300 million in ESF funding to the Central American democracies, "reaffirmed" its support for CADO and required that "not less than $750,000" of the available funds be used to establish the Central American Development Organization and its administrat ive apparatus. Expand Trade Opportunities and Encourage Improved Investment Conditions The Commission sought to encourage export growth and investment in the region through extension of the Caribbean Basin Initiative, technical and financial support for export promotion efforts, expanded availability of Overseas Private Investment Corporation (OPIC) insur151 While adopted prior to the Kissinger ance, and other measures. Commission recommendations, congressional action to extend one-way duty-free treatment to Central American states through the Caribbean Basin Initiative was a major effort in this area. It is the basis for wide-ranging activities by numerous agencies to encourage the expansion of exports to the United States. In addition, acting upon the Administration's recommendation, the Congress authorized and 141 - Kissinger, p. 61-62. 151 - Kissinger, p. 55-57. 1 1 I 1 1 I 1 1 I 1 1 I o o m * -- oouo ???? 0 OmQN mmmm " ma0- e mm u m 9 h 03www mmmm I---- ! h appropriated funds, under the Trade Credit Insurance Program, to guarantee about $250 million per year in Export-Import Bank financing of U.S. imports that are crucial to export promotion efforts, and supported the Overseas Private Investment Corporation's efforts to expand insurance coverage in the region and to encourage investment through investment missions and feasibility studies. 161 Moreover, much of the balance of payments support provided through Economic Support Funds has been used to stabilize the Central American economies, to finance imports necessary for export expansion, and to restructure economic policies to stimulate the private sector. Encourage Accelerated Agricultural Development The Commission recommended that additional U.S. resources be provided to support government efforts to promote land redistribution, to provide agricultural credit and services, and to encourage the development of cooperatives. 171 At the request of the Administration, Congress permitted U.S. assistance to be used to support land reform measures. Sect ion 1203 of the International Security and Development Cooperation Act of 1985 amends the previously existing prohibition on the use of U.S. assistance to compensate owners of land expropriated under a land reform (section 620(g) of the Foreign Assistance Act of 1961) and permits aid to be used for such purposes if the President determines that such assistance will further the national interest of the United States. The Administration indicated that El Salvador would be the major beneficiary of this provision. Without going into great detail on support for agriculturerelated programs, it is clear from Table 2 that U.S. assistance to agriculture, rural development and nutrition in Central America has increased, with congressional support, from $76.5 million in FY84 to $99.1 million in FY85, $105.2 million in FY86, and $97.4 million in FY87. 181 - Expand Human Development Programs To deal with serious socio-economic needs in Central America, the Cormnission recommended increased attention to health, education, housing, and population planning. 191 The figures in Table 2 make it clear that assistance has increased significantly in the targeted 161 171 - See State--August 1986, p. 11-15. Kissinger, p. 57-59. 18/ See State--August 1986, p. 15-16, 20; and FY88 CongressionalPresentation for more details. 191 - Kissinger, p. 68-83. areas in the last few years with support from Congress. Funding for Population Planning increased from $5.7 million in FY84 to an average of $13 million in the last three years, while funds devoted to Health Programs increased from $13.4 million in FY84 to $51.3 million in FY85 and $42.1 million in FY86 but fell to $19.3 million in FY87. Showing the largest increase, funding for Education and Human Resources Development jumped from $4.6 million in FY84 to $64.5 million in FY85, and $46 million in FY86, and $50 million in FY87. 201 CONGRESSIONAL ACTION ON THE COMMISSION'S RECOMMENDATIONS FOR DEALING WITH THE POLITICAL-SECURITY CHALLENGE Provide Increased Military Aid to El Salvador Arguing that U.S. military assistance was inadequate to permit the Salvadoran army to wage war with the guerrillas with success, the Commission recommended a significant increase in military aid to El Salvador. 211 Identified as important needs were the following: increased air a n 7 ground mobility, higher force levels, and improved medical evacuation abilities. In 1984, the Administration requested $178.7 million in supplemental FY84 military aid and $132.5 million in FY85 military assistance. Congress resisted the request for supplemental funding, as noted above, but eventually accepted full funding for FY85. Acting through a Continuing Resolution, it initially limited FY85 military aid to $128.3 million, a reduction of $4.2 million. However, the Administration was able, through a variety of exemptions, mostly involving the reallocation of funds originally designated for the Regional Military Training Center, to allocate $136.3 million in FY85 military aid to El Salvador, more than the $132.5 million requested. This was permitted in part because congressional opposition to aid to El Salvador seemed to decline significantly following the election in May 1984, of Jose Napoleon Duarte of the Christian Democratic Party as President of El Salvador. In early 1985, the Administration requested $132.6 million in FY86 military aid for El Salvador and, in September 1985, requested another $10 million as part of the Central American Counterterrorism Program. While action was never completed on the Counterterrorism 201 See programs. State--August 1986, p. 17-20, for more detail on 211 Kissinger, p. 101-102. For congressional action see "El ~alvazr--policy Issues and Opt ions for the 98th Congress ,I' Archived CRS Issue Brief IB83051, 1985; and "El Salvador Aid: Congressional Action, 1981-1986, on President Reagan's Requests for Economic and Military Aid for El Salvador," CRS Report, 1987. Program, the foreign aid authorization (P.L. 99-83) and the foreign operations appropriations (P.L. 99-1901, in a break from past practice, contained no language specifically limiting military aid to El Salvador. The worldwide levels of aid approved in both measures were less than the Administration requested, however. In this budgetcutting context, compounded by across-the-board cuts under the GrammRudman-Hollings Act, the Administration was able to obligate $121.8 million in FY86 military aid to El Salvador, an $11 million reduction from the request of $132.6 million, including $5 million withheld pending legal action on the 1981 murder of Americans. In 1986, following reductions mandated by the Gramm-RudmanHollings Deficit Reduction Act, the Administration requested $136.2 million in FY87 military aid for El Salvador, exactly at the same level as the previous year's request. The Foreign Aid Appropriations Act for FY87, eventually incorporated as section 101(f) of the omnibus Continuing Appropriations Act for FY87 (H.J. Res. 738) enacted into law (P.L. 99-500, P.L. 99-591) in mid-October 1986, contained no required cuts in military aid to El Salvador. However, since the Act set aid levels considerably below the President's request and contained earmarkings for certain countries, the Administration was only able to allocate $116.5 million in FY87 military aid for El Salvador, a reduction from the request for $136.2 million. As a result, the Administration's request, in early 1987, for supplemental FY87 funds includes a request for $17.5 million in military aid grants for El Salvador. With the sustained, but declining levels of military aid in the last few years, El Salvador has been able to significantly augment its ground and air force levels in keeping with Kissinger Commission recommendations. 221 As a result, most observers believe that at present the guerriXias are militarily on the defensive in the country. Make Military Aid to El Salvador Contingent Upon Human Rights Progress The Commission argued that increased military aid had to be accompanied by increased pressure to safeguard human rights. It recommended, with minor reservations from three members, that military aid to El Salvador "should, through legislation requiring periodic reports, be made contingent upon demonstrated progress toward free elections; freedom of association; the establishment of the rule of law and an effective judicial system; and the termination of the so-called death squads, as we11 as vigorous action against those guilty of crimes and the prosecution to the extent possible of past offenders." 231 221 See p. 21-22. 231 - State--April Kissinger, p. 104. 1985, p. 11 ; and State--August 1986, During 1984, C o n g r e s s , a c t i n g on t h r e e m e a s u r e s , made m i l i t a r y a i d t o El S a l v a d o r c o n t i n g e n t upon p r o g r e s s i n human r i g h t s , i n keeping w i t h t h e Commission's recommendation, even though t h e P r e s i d e n t had n o t recommended s u c h c o n d i t i o n s . The s o - c a l l e d Urgent FY84 Supplemental ( P . L. 98-332) , e n a c t e d i n J u l y 1984, p r o v i d e d t h a t none o f t h e $61.7 m i l l i o n i n m i l i t a r y a i d t o El S a l v a d o r a p p r o p r i a t e d b y t h e Act c o u l d b e a v a i l a b l e u n t i l t h e Presi d e n t r e p o r t e d t o Congress " h i s d e t e r m i n a t i o n t h a t t h e Government o f El Salvador h a s d e m o n s t r a t e d p r o g r e s s toward l a n d r e f o r m , f r e e e l e c t i o n s , freedan of a s s o c i a t i o n , t h e e s t a b l i s h m e n t o f t h e r u l e o f law and an e f f e c t i v e j u d i c i a l s y s t e m , and t h e t e r m i n a t i o n o f t h e a c t i v i t i e s of t h e so-called d e a t h squads, including vigorous a c t i o n a g a i n s t members o f such s q u a d s who a r e g u i l t y o f c r i m e s and p r o s e c u t i o n t o 11 t h e e x t e n t p o s s i b l e o f s u c h members who a r e p a s t o f f e n d e r s ; In a d d i t i o n , t h e Congress r e q u i r e d t h e P r e s i d e n t t o r e p o r t e v e r y 60 d a y s , o n a c o n t i n u i n g b a s i s , t h e p r o g r e s s made d u r i n g t h e p r e c e d i n g 60 d a y s i n a c h i e v i n g t h e o b j e c t i v e s mentioned above. . . . . . The Second Suppl m e n t a l A p p r o p r i a t i o n s Act f o r FY84 (P L. 98-396) , e n a c t e d i n August 1984, e s t a b l i s h e d n e a r l y i d e n t i c a l c o n d i t i o n s p r i o r t o t h e o b l i g a t i o n o r e x p e n d i t u r e o f $70 m i l l i o n i n M i l i t a r y A s s i s t a n c e Program f u n d s f o r El S a l v a d o r a p p r o p r i a t e d by t h e Act. The F o r e i g n A s s i s t a n c e A p p r o p r i a t i o n s A c t , 1985, c o n t a i n e d i n t h e C o n t i n u i n g R e s o l u t i o n f o r FY85 A p p r o p r i a t i o n s (P.L. 98-473) , e n a c t e d i n October 1984, p r o v i d e d t h a t h a l f o f t h e $111.7 m i l l i o n i n m i l i t a r y a s s i s t a n c e t o El S a l v a d o r c o u l d b e provided w i t h o u t c o n d i t i o n s , b u t t h e r a n a i n i n g h a l f was c o n d i t i o n e d on human r i g h t s p r o g r e s s even though s p e c i f i c r e p o r t s were n o t r e q u i r e d a s recammended b y t h e Commission. The l a w r e q u i r e d t h e A d m i n i s t r a t i o n t o " c o n s u l t " w i t h t h e Committees on A p p r o p r i a t i o n s p r i o r t o March 1 , 1985, i n r e g a r d t o r e d u c t i o n and punishment o f d e a t h squad a c t i v i t i e s , e l i m i n a t i o n o f c o r r u p t i o n and m i s u s e o f g o v e r m e n t f u n d s , development o f a Salv a d o r a n p l a n t o improve t h e performance o f t h e m i l i t a r y , and p r o g r e s s toward d i s c u s s i o n s l e a d i n g t o a peacef u l r e s o l u t i o n o f t h e c o n f l i c t . It a l s o s p e c i f i c a l l y n o t e d t h a t i t was " t h e d i r e c t i o n o f Congress" t h a t t h e second h a l f o f FY85 f u n d s should n o t b e o b l i g a t e d " u n t i l s u b s t a n t i a l p r o g r e s s h a s been made o n each o f t h e above p o i n t s . " & r e o v e r , t h e l a w s e t a s i d e $5 m i l l i o n o f t h e a i d " u n t i l t h e Government o f El S a l v a d o r h a s ( 1 ) s u b s t a n t i a l l y c o n c l u d e d a l l i n v e s t i g a t i v e a c t i o n w i t h r e s p e c t t o t h o s e r e s p o n s i b l e f o r t h e J a n u a r y 1981 d e a t h s o f t h e two United S t a t e s l a n d reform c o n s u l t a n t s Michael Hammer and Mark Perlman and t h e S a l v a d o r a n Land Reform D i r e c t o r J o s e Rodolfo V i e r a , and ( 2 ) b r o u g h t t h e accused t o t r i a l and o b t a i n e d a v e r d i c t . " During 1985, c o n g r e s s i o n a l r e s t r i c t i o n s on a i d t o E l S a l v a d o r seemed, i n g e n e r a l , t o b e weaker t h a n t h o s e recommended by t h e K i s s i n g e r Commission. T h i s r e p r e s e n t e d a s i g n i f i c a n t b r e a k with p a s t practice. (IS & S e c t i o n 702 of t h e F o r e i g n Aid A u t h o r i z a t i o n DC A c t , 1985, P.L. 99-83) passed i n J u l y f o r FY86 and FY87 1985, changed t h e p r e v i o u s b i n d i n g c o n d i t i o n s t o e x p e c t a t i o n s and r e q u i r e d s e m i a n n u a l r e p o r t s on t h e e x t e n t t o which t h e e x p e c t a t i o n s were b e i n g m e t . P a r a p h r a s i n g t h e p r o v i s i o n , i t s t a t e s t h a t Congress e x p e c t s t h e Government o f E l S a l v a d o r t o p u r s u e a d i a l o g u e w i t h t h e g u e r r i l l a s , t o b e i n c o n t r o l o f t h e m i l i t a r y and s e c u r i t y f o r c e s t o i n s u r e t h a t t h e y comply w i t h i n t e r n a t i o n a l l a w r e l a t i n g t o w a r f a r e , and t o make demonstrated progress i n ending t h e a c t i v i t i e s o f t h e d e a t h s q u a d s , i n e s t a b l i s h i n g an e f f e c t i v e j u d i c i a l s y s t e m , and i n implementing t h e l a n d r e f o r m program. While f o u r r e p o r t s a r e t o b e made a t six-month i n t e r v a l s o n t h e e x t e n t t o which t h e above o b j e c t i v e s a r e b e i n g m e t , t h e p r o v i s i o n o f m i l i t a r y a i d t o El S a l v a d o r i s n o t c o n t i n g e n t upon d e m o n s t r a t e d p r o g r e s s i n t h o s e a r e a s , a s recommended by t h e Commission and a s r e q u i r e d i n p r e v i o u s l e g i s l a t i o n . Related p r o v i s i o n s o f t h e Act r e q u i r e d t h a t Congress b e n o t i f i e d b e f o r e t h e e x p o r t o f h e l i c o p t e r s and a i r c r a f t t o t h e c o u n t r y and t h a t a l l a i d b e suspended i f P r e s i d e n t D u a r t e were deposed b y a m i l i t a r y c o u p . The F o r e i g n Aid A p p r o p r i a t i o n f o r FY86 was e v e n t u a l l y i n c o r p o r a t e d i n t o t h e omnibus C o n t i n u i n g R e s o l u t i o n (H.J . Res. 465) which Congress passed and t h e P r e s i d e n t s i g n e d i n t o l a w ( P . L . 99-190) o n Decanber 1 9 , 1985. I n s e c t i o n s r e l a t i n g s p e c i f i c a l l y t o El S a l v a d o r , i t provided up t o $1 m i l l i o n o f ESF f u n d s t o a s s i s t El S a l v a d o r ' s S p e c i a l I n v e s t i g a t i v e Unit i n b r i n g i n g t o j u s t i c e t h o s e r e s p o n s i b l e f o r t h e murder o f U.S. c i t i z e n s , and i t s e t a s i d e $5 m i l l i o n o f m i l i t a r y a s s i s t a n c e u n t i l the P r e s i d e n t r e p o r t s t h a t t h e Salvadoran government h a s s u b s t a n t i a l l y c o n c l u d e d a l l i n v e s t i g a t i v e a c t i o n and h a s pursued a l l l e g a l avenues t o b r i n g t o t r i a l t h o s e r e s p o n s i b l e f o r t h e J a n u a r y 1981 k i l l i n g o f t h r e e l a n d r e f o r m s p e c i a l i s t s , i n c l u d i n g two Americans, i n San S a l v a d o r . Other p r o v i s i o n s o f t h e A c t , similar t o those i n the foreign aid authorization, specified t h a t a p p r o p r i a t i o n committees a r e t o r e c e i v e t h e r e q u i r e d r e p o r t s on human r i g h t s c o n d i t i o n s and t o b e n o t i f i e d 15 d a y s i n advance o f t h e p r o v i s i o n o f a i r c r a f t o r h e l i c o p t e r s t o El S a l v a d o r , and t h a t a i d i s t o b e suspended i f a d u l y e l e c t e d head o f government i s deposed b y m i l i t a r y coup o r d e c r e e . During 1986, c o n g r e s s i o n a l c o n d i t i o n s o n a i d t o El S a l v a d o r were v e r y s i m i l a r t o c o n d i t i o n s adopted i n 1 9 8 5 , a n d , l i k e t h e p r e v i o u s c o n d i t i o n s , seemed t o b e weaker t h a n t h e Commission recommended. The F o r e i g n Aid A p p r o p r i a t i o n f o r FY87 was i n c o r p o r a t e d a s s e c t i o n 1 0 1 ( f ) o f t h e omnibus C o n t i n u i n g A p p r o p r i a t i o n s Act f o r FY87 ( H . J . Res. 738) e n a c t e d i n t o l a w (P.L. 99-500, P.L. 99-591) i n mid-October 1986. Prov i s i o n s r e l a t i n g s p e c i f i c a l l y t o El S a l v a d o r a p p r o p r i a t e d up t o $ 1 m i l l i o n i n ESF f u n d s t o a s s i s t El S a l v a d o r ' s S p e c i a l I n v e s t i g a t i v e U n i t i n b r i n g i n g t o j u s t i c e t h o s e r e s p o n s i b l e f o r t h e m u r d e r o f U.S. c i t i z e n s , and i t s e t a s i d e $5 m i l l i o n o f m i l i t a r y a s s i s t a n c e u n t i l t h e P r e s i d e n t h a s r e p o r t e d t h a t t h e Government o f El S a l v a d o r h a s s u b s t a n t i a l l y c o n c l u d e d a l l i n v e s t i g a t i v e a c t i o n and h a s p u r s u e d a l l l e g a l avenues t o b r i n g t o t r i a l those r e s p o n s i b l e f o r t h e k i l l i n g s o f two American l a n d r e f o r m s p e c i a l i s t s i n J a n u a r y 1981. They s p e c i f i e d t h a t ESF f u n d s p l a c e d i n El S a l v a d o r ' s C e n t r a l R e s e r v e Bank a r e t o b e m a i n t a i n e d i n a s e p a r a t e a c c o u n t , and provided t h a t a l l a i d would b e suspended i f a d u l y e l e c t e d head o f government were deposed by a m i l i t a r y c o u p o r d e c r e e . Other p r o v i s i o n s o f t h e Act p r o v i d e d that the appropriation committees are to receive the required reports on human rights conditions, to be notified 15 days in advance of the provision of aircraft or helicopters to El Salvador, and to be given the same notificaton and human rights determination as the authorizing committees whenever police assistance is provided. Except for the set-asides of $5 million pending action to bring to justice those responsible for murdering the land reform specialists, the conditions enacted in 1985 and 1986 are less restrictive than those recommended by the Kissinger Commission. Provide Military Assistance to Guatemala Under Strong Human Rights Conditions Arguing that Guatemala was a pivotal country, the Commission recommended an unspecified amount of U.S. military assistance for Guatemala when the country could meet human rights conditions of the sort recommended for El Salvador. 241 - In 1984, in keeping with this recommendation, the Administration requested $10 million in FMS credits and $300,000 for international military training (IMET) for fiscal year 1985, arguing that the country was no longer experiencing a consistent pattern of human rights abuse. The Congress, expressing concern over the human rights conditions in the country, prohibited FMS credits in the Continuing Resolution for fiscal year 1985, but did not forbid IMET assistance for the country. In 1985, the Administration again requested $10 million in FMS credits and $300,000 in IMET assistance for Guatemala for FY86. While the Congress approved IMET assistance without restrictions, it approved FMS assistance only under tough human rights conditions very much in keeping with the Commission's recommendations. Section 703 of the Foreign Aid Authorization for FY86 and FY87 (P.L. 99-83), passed by Congress in July 1985, permits military assistance and sales for Guatemala only if the President certifies to Congress that (1) an elected civilian government is in power and has formally requested assistance, and (2) that the government has made demonstrated progress in achieving control over its military and security forces, in eliminating kidnapings, disappearances, and other human rights abuses, and in respecting the rights of its indigenous Indian population. If the conditions are met, the Act provides that Guatemala may be provided with up to $10 million in FMS financing for both fiscal years for construct ion equipment, mobile medical faciities, and related training, but not for use in the rural resettlement program. None of the military assistance may be used for the procurement of weapons or ammunition, and all assistance is to be suspended in the event of a military coup. 241 Kissinger, p. 102, 104. For more on congressional action, see "Guatemala: U.S. Foreign Assistance Facts," CRS Issue Brief IB85100, updated regularly. T i t l e I11 o f t h e F o r e i g n Aid A p p r o p r i a t i o n f o r FY86, c o n t a i n e d i n t h e C o n t i n u i n g A p p r o p r i a t i o n s Act , 1986 (P .L. 99-190) , p a s s e d i n December 1985, a l s o c o n d i t i o n s m i l i t a r y a s s i s t a n c e and s a l e s t o Guatemala on t h e same g r o u n d s a s c o n t a i n e d i n t h e a u t h o r i z a t i o n m e a s u r e . Following t h e e l e c t i o n i n J a n u a r y 1986 of C h r i s t i a n Democrat V i n i c i o Cerezo a s P r e s i d e n t o f Guatemala, t h e A d m i n i s t r a t i o n n o t i f i e d Congress t h a t i t i n t e n d e d t o a l l o c a t e $4.8 m i l l i o n i n M i l i t a r y A s s i s t On May 30, 1986 and Decema n c e Program g r a n t s t o Guatemala i n FY86. b e r 8 , 1986, i t s e n t t h e r e q u i r e d human r i g h t s c e r t i f i c a t i o n s t o C o n g r e s s , a r g u i n g t h a t a c i v i l i a n government had b e e n i n s t a l l e d and had r e q u e s t e d a s s i s t a n c e , and t h a t p r o g r e s s i n human r i g h t s c o n d i t i o n s had been d e m o n s t r a t e d i n t h e r e l e v a n t p e r i o d s . Total m i l i t a r y a i d t o Guatemala f o r FY86 was $ 5 . 4 m i l l i o n , and t h e e s t i m a t e d t o t a l f o r FY87 was $ 2 . 4 m i l l i o n . P r o v i d e I n c r e a s e d M i l i t a r y A s s i s t a n c e To Honduras The Commission recommended i n c r e a s e d m i l i t a r y a s s i s t a n c e f o r Hond u r a s i n o r d e r t o provide a c r e d i b l e d e t e r r e n t t o Nicaragua, without s p e c i f y i n g t h e amount o f t h e i n c r e a s e . 251 G e n e r a l l y s p e a k i n g , Cong r e s s approved t h e A d m i n i s t r a t i o n ' s r e q u e s t s i n 1984 and 1985 f o r m i l i t a r y a s s i s t a n c e t o Honduras, a l t h o u g h t h e C o n t i n u i n g R e s o l u t i o n f o r FY85 d i d c u t o f f a s s i s t a n c e f o r t h e Regional M i l i t a r y T r a i n i n g C e n t e r l o c a t e d i n Honduras u n t i l Honduras a g r e e d t o i n c l u d e S a l v a d o r a n s i n t h e t r a i n i n g and t o p r o v i d e c o m p e n s a t i o n t o a n American c i t i z e n whose l a n d was e x p r o p r i a t e d f o r t h e C e n t e r . h'hen Honduras f a i l e d t o meet t h e s e c o n d i t i o n s , t h e C e n t e r was c l o s e d i n March 1985, and t h e a i d was reprogrammed t o o t h e r C e n t r a l American r e c i p i e n t s . Neverthel e s s , U.S. m i l i t a r y a i d t o Honduras h a s i n c r e a s e d s i g n i f i c a n t l y i n t h e l a s t few y e a r s , from $37.3 m i l l i o n i n FY83 t o $61.1 m i l l i o n i n It would r e c e i v e an a d d i t i o n a l FY86 and $61.2 m i l l i o n i n FY87. $1 7.5 m i l l i o n under t h e proposed FY87 supplement a 1 In a d d i t i o n , Honduras h a s b e n e f i t e d from U.S. m i l i t a r y c o n s t r u c t i o n a t a i r b a s e s and t h e r e g u l a r j o i n t U.S.-Honduras e x e r c i s e s i n t h e c o u n t r y . 261 . - P r o v i d e S u p p o r t f o r a n A d m i n i s t r a t i o n o f J u s t i c e Program and End P r o h i b i t i o n on- P o l i c e A s s i s t a n c e A r g u i n g , e s p e c i a l l y w i t h r e g a r d t o El S a l v a d o r , t h a t e f f e c t i v e j u d i c i a l and i n v e s t i g a t i v e p r o c e d u r e s were i m p e r a t i v e t o end d e a t h squad a c t i v i t i e s , t h e Commission somewhat o b l i q u e l y recommended a s s i s t a n c e f o r j u d g e s , p r o s e c u t o r s , and c r i m i n a l i n v e s t i g a t i v e a g e n c i e s 251 - - K i s s i n g e r , p . 102. 261 See S t a t e - - A p r i l 1985, p . 12-20; and State--August 1986, p. 22. For c o n g r e s s i o n a l c o n c e r n s and a c t i o n , s e e "Honduras: U.S. Military Activities," CRS I s s u e B r i e f IB84134; and "Honduras: U.S. F o r e i g n A s s i s t a n c e F a c t s ,'I CRS I s s u e B r i e f IB85080, u p d a t e d r e g u l a r l y . t o s t r e n g t h e n t h e a d m i n i s t r a t i o n o f j u s t i c e . 271 It a l s o c a l l e d on Congress t o amend t h e p r o h i b i t i o n on p o l i c e a s s i s t a n c e ( s e c t i o n 660 of t h e Foreign A s s i s t a n c e Act) and t o a l l o c a t e f u n d s , under c a r e f u l l y d e f i n e d c o n d i t i o n s , f o r t h e t r a i n i n g and support o f law enforcement a g e n c i e s i n C e n t r a l America. 28/ - In 1984, t h e A d m i n i s t r a t i o n sought support f o r a g e n e r a l administ r a t i o n o f j u s t i c e program f o r t h e r e g i o n b u t Congress agreed o n l y t o provide $6.5 m i l l i o n i n ESF a s s i s t a n c e t o E l Salvador i n o r d e r t o prot e c t w i t n e s s e s i n c r i m i n a l c a s e s , t o improve i n v e s t i g a t i v e capab i l i t i e s , and t o modernize penal and e v i d e n t i a r y c o d e s . 291 The f o l lowing y e a r , Congress approved a g e n e r a l ~ d m i n i s t r a t i o of n Just ice Program f o r C e n t r a l America and t h e Caribbean and waived t h e p r o h i b i t i o n on p o l i c e t r a i n i n g f o r c e r t a i n c o u n t r i e s . S e c t i o n 712 o f t h e I n t e r n a t i o n a l S e c u r i t y and Development Cooperation A c t o f 1985 (P.L. 99-83) a u t h o r i z e d up t o $20 m i l l i o n per year f o r A d m i n i s t r a t i o n of J u s t i c e programs under t h e c o n d i t i o n t h a t t h e f o r e i g n a f f a i r s committ e e s b e n o t i f i e d of t h e amount and n a t u r e of such a s s i s t a n c e 15 days b e f o r e o b l i g a t i o n . 301 S e c t i o n 711 o f t h e same Act waived t h e prohib i t i o n on p o l i c e a s s i s t a n c e i f t h e c o u n t r y h a s a l o n g s t a n d i n g democ r a t i c t r a d i t i o n , d o e s n o t have a s t a n d i n g army, and d o e s n o t engage i n human r i g h t s abuse ( i . e . , Costa Rica and most c o u n t r i e s of t h e English-speaking Caribbean) The p r o h i b i t i o n was waived f o r E l Salvador and Honduras a s well i f t h e R e s i d e n t n o t i f i e d t h e f o r e i g n a f f a i r s committees under reprogramming procedures t h a t t h e government o f t h e r e c i p i e n t c o u n t r y had made s i g n i f i c a n t p r o g r e s s , d u r i n g t h e preceding s i x months, i n e l i m i n a t i n g any hunan r i g h t s a b u s e s . . In September 1985, t h e A d m i n i s t r a t i o n r e q u e s t e d an a d d i t i o n a l $54 m i l l i o n i n a s s i s t a n c e t o fund a S p e c i a l C e n t r a l American Counterterr o r i s m Program. Half of t h e amount would be i n t h e form o f a n t i t e r r o r i s m a s s i s t a n c e t o C e n t r a l American c o u n t r i e s , most of which would go t o law enforcement a g e n c i e s , and t h e o t h e r h a l f would b e m i l i t a r y a s s i s t a n c e t o s t r e n g t h e n c o u n t e r t e r r o r i s m e f f o r t s . Many Members viewed t h i s request a s a very l a t e e f f o r t to increase military aid to the r e g i o n and t o augment funds f o r t h e r e c e n t l y e s t a b l i s h e d a n t i t e r r o r i s m a s s i s t a n c e program, under r e s t r i c t i o n s t h a t were l e s s demanding t h a n t h e l e g i s l a t i o n j u s t p a s s e d . As a r e s u l t , n e i t h e r House o f Congress completed a c t i o n on t h e r e q u e s t , although t h e Senate Foreign R e l a t i o n s Committee d i d r e p o r t o u t a c l e a n b i l l i n December 1985 w i t h s t r i c t human r i g h t s c o n d i t i o n s . 27/ 281 291 - K i s s i n g e r , p . 103-104. 301 - See K i s s i n g e r , p. 96-97. See State--April State--August 1985, p. 9-10. 1986, p. 6-7 f o r d e t a i l s on programs. Encourage a Comprehensive,- - C a r r o t - a n d - S t i c k Approach -- i n t-h e Region Usinfi The Commission urged t h e United S t a t e s t o s p a r e no e f f o r t t o enc o u r a g e a d i p l o m a t i c s e t t l e m e n t i n t h e r e g i o n t h a t would b e c a n p r e h e n s i v e and v e r i f i a b l e , u s i n g economic a s s i s t a n c e a s a n inducement and the t h r e a t of m i l i t a r y force a s a penalty for f a i l u r e . In l i n e with t h e 21 o b j e c t i v e s a c c e p t e d by t h e C e n t r a l American s t a t e s a t t h e b e h e s t o f t h e Contadora Group 311 (Mexico, V e n e z u e l a , Colombia, Panama), t h e s e t t l e m e n t would i n c l u d e commitments o n p o l i t i c a l p l u r a l i s m , arms r e d u c t i o n , and n o n - i n t e r v e n t i o n , a n d , i f a c h i e v e d , would l e a d t o n a t i o n a l r e c o n c i l i a t i o n i n El S a l v a d o r and N i c a r a g u a . With r e g a r d t o El S a l v a d o r , t h e Commission r e j e c t e d n e g o t i a t i o n s t h a t would l e a d t o power-sharing by t h e g u e r r i l l a s , b u t i t urged e f f o r t s a t n e g o t i a t e d r e c o n c i l i a t i o n t o encourage a l l elements o f t h e s o c i e t y t o p a r t i c i p a t e i n t h e 1985 l e g i s l a t i v e e l e c t i o n s . Regarding N i c a r a g u a , t h e Commission c o n c l u d e d t h a t i t . would b e unwise t o d i s m a n t l e "exi s t i n g i n c e n t i v e s and p r e s s u r e s , " and a m a j o r i t y f e l t t h a t U.S. s u p p o r t f o r t h e Nicaraguan i n s u r g e n t s ( " c o n t r a s " ) r e p r e s e n t e d one o f t h e i n c e n t i v e s working i n f a v o r o f a n e g o t i a t e d s e t t l e m e n t . 321 - In g e n e r a l , t h e Congress h a s s u p p o r t e d t h e t h r u s t o f t h e s e Comm i s s i o n recommendations, w i t h some v a r i a t i o n o v e r t i m e . As i n d i c a t e d a b o v e , i t approved i n c r e a s e d e c o n a n i c a s s i s t a n c e t o t h e r e g i o n , and p e r m i t t e d a v a r i e t y o f m i l i t a r y o r p a r a m i l i t a r y p r e s s u r e s -- ma i n e l e m e n t s i n t h e recommended program. With r e g a r d t o El S a l v a d o r , t h e Congress r e q u i r e d t h e P r e s i d e n t t o r e p o r t r e g u l a r l y on Salvadoran e f f o r t s t o r e a c h a n e g o t i a t e d s e t t l e m e n t w i t h t h e g u e r r i l l a s , and i t s u p p o r t e d t h e e f f o r t s b y a S p e c i a l U.S. Envoy t o f a c i l i t a t e t a l k s b e f o r e t h e 1984 e l e c t i o n s a s w e l l a s t h e e f f o r t s b y P r e s i d e n t Duarte t o engage i n t a l k s i n O c t o b e r and November of 1984. There was l i t t l e t o show from a n y o f t h e s e e f f o r t s , however, and t h e p r o - g u e r r i l l a g r o u p s r e f u s e d t o p a r t i c i p a t e i n t h e 1985 e l e c t i o n s a s t h e Commission had hoped. With r e g a r d t o C o n t a d o r a and N i c a r a g u a , c o n g r e s s i o n a l o p i n i o n h a s v a r i e d b u t i n 1985 and 1986 moved toward agreement w i t h t h e K i s s i n g e r Commission recommendations. In October 1984, p a r t l y o u t o f c o n c e r n t h a t U.S. s u p p o r t f o r t h e c o n t r a s i n N i c a r a g u a , a l o n g w i t h m i l i t a r y maneuvers i n Honduras, m i g h t b e a t o d d s w i t h t h e Contadora Group's e f f o r t s t o a c h i e v e a r e g i o n a l peace s e t t l e m e n t , t h e Congress p r o h i b i t e d FY85 s u p p o r t f o r t h e c o n t r a s . However, i t 311 For background and m a j o r d e v e l o p m e n t s , s e e CRS I s s u e B r i e f 1 ~ 8 5 1 0 9o n "Contadora I n i t i a t i v e : I m p l i c a t i o n s f o r Congress , I ' u p d a t e d periodically. 32/ K i s s i n g e r , p . 106-120. For c o n g r e s s i o n a l a c t i o n o n a i d t o t h e c o n t r a s , s e e " C o n t r a Aid, 1981-1986: Summary and Chronology o f Major C o n g r e s s i o n a l A c t i o n o n Key L e g i s l a t i o n Concerning U . S. Aid t o A n t i - S a n d i n i s t a G u e r r i l l a s , " CRS Report 87-65 F, J a n u a r y 2 8 , 1987. CRS-20 provided for a lifting of the prohibition after February 28, 1985, if the President requested contra assistance and explained how it would further U.S. goals in the region, "including the achievement of peace and security in Central America through a comprehensive, verifiable and enforceable agreement based upon the Contadora Document of Objectives" (sect ion 8066 of the Department of Defense Appropriations Act, 1985, incorporated in section 101 of the Continuing Appro~riations Act, 1985 (P.L. 98-473)). While the House initially rejected the President's early 1985 request for contra assistance under the procedures described above, by mid-year 1985 Congress had agreed in the Supplemental Appropriations Act, 1985 (P.L. 99-88) and in the Foreign Aid Authorization Act (P.L. 99-83) to a compromise package providing $27 million in nonlethal, humanitarian aid to the contras to be administered by non-intelligence agencies . As spelled out in sections 701 and 722 of the Foreign Aid Authorization (IS & DC, 1985), Congress essentially adopted the Kissinger Commission's "carrot-and-stick approach," including pressure on Nicaragua, by helping to sustain the contras with humanitarian aid, to encourage a Contadora-type settlement. Section 701 of the Foreign Aid Authorization, stated that the Congress "strongly supports the initiatives taken by the Contadora group," and it finds that the United States should provide such assistance and support as may be appropriate in helping to achieve a comprehensive and verifiable settlement. Section 722 not only repeats these findings, but subsection (h) authorizes $2 million for expenses arising from a Contadora settlement, including peacekeeping, verification, and monitoring systems. The carrot-and-stick approach is then more explicitly set out These authorize the President in subsections (i) and (k) and (p). to suspend U.S. economic sanctions against Nicaragua, to resume bilateral talks with Nicaragua, and to request additional assistance for the Central American peace process under expedited procedures if a Contadora settlement is achieved. If results are not forthcoming in these areas, however, the President is authorized to request additional assistance for the Nicaraguan democratic resistance (contras) under expedited procedures. Acting under the provision just described, the President, in February 1986, requested $100 million in military and humanitarian assistance for the anti-Sandinista rebels (contras), arguing that Nicaragua had obstructed the Contadora Group's efforts to achieve a regional agreement and had refused to enter into dialogue with the democratic resistance forces in the country. Congress eventually approved this request with passage of title I1 of the Military Construction Appropriation Act (H.R. 5052). As passed by the House in June 1986 and by the Senate in August 1986, title I1 provided $100 million in military and humanitarian aid for the contras and $300 million in Economic Support Funds for the democratic countries in the region. This provision in the Military Construction Appropriations Act for FY87 was eventually incorporated as section 101(k) in the omnibus Continuing Appropriations Act for FY87 (H.J. Res. 738) which was passed by Congress and enacted into law (P.L. 99-500, P.L. 99-591) in mid-October 1986. Like the previous legislation, title I1 created a series of incentives and disincentives for regional settlement as recommended by the Kissinger Commission. Section 203(b) states that the United States will initiate bilateral discussions with Nicaragua and limit the amount and type of assistance to the contras if Nicaragua makes efforts to reduce military ties to Cuba and the Soviet Union, to control the military buildup, to cease support for insurgencies, to establish democratic processes, and to engage in dialogue with the democratic opposition. Section 205(d) assigns up to $2 million to facilitate regional peace talks; section 213 sets up a Commission on Central American Negotiations to assess progress; section 211 requires the aid to be disbursed in stages and only after the President reports there is no reasonable prospect for agreement, dialogue, or cease-fire through diplomatic measures; and section 210 provides, in case a peaceful settlement is reached, that the unobligated balance of the $100 million will be used for relief, rehabilitation, and reconstruction in Central America. In the event no progress is forthcoming, however, section 215 permits the President to request additional assistance for the Contras under expedited procedures. In early 1987, for a variety of reasons, including the Irancontra scandal and disunity within the contra political leadership, congressional support for the anti-Sandinista contras appeared to diminish. While efforts to block the final $40 million tranche of the previously approved assistance seemed unlikely to succeed, the prospects for approval of the President's request for $105 million in FY88 assistance for the contras seemed to be uncertain. THE ADMINISTRATION'S MARCH 1987 REPORT AND PLAN FOR FULLY FUNDING THE COMMISSION~SRECOMMENDATIONS In early March 1987, the President sent a message to Congress, along with the report and plan for fully funding the Kissinger Commission recommendations. 331 This report was in compliance with a requirement in section 205(c) of the Military Construction Appropriations Act for FY87, contained in section 101(k) of the omnibus Continuing Appropriations Act for FY87 (P.L. 99-500, P.L. 99-591) which originally approved $300 million in economic assistance for the 331 U.S. House, "Pertaining to Additional Economic Assistance to thecentral American Democracies: Message from the President to the United States Transmitting the Report of the Secretary of State, the Administrator of the Agency for International Development, and the Director of the Office of Management and Budget Pertaining to Their Plan for Funding Assistance to the Central American Democracies, Pursuant to Sec. 205(c) of the Military Construction Appropriation Act, 1987, as contained in Public Laws 99-500 and 99-591," 100th Congress, 1st Session, House Document 100-42, March 4, 1987. CRS-22 Central American democracies, along with $100 million in military and humanitarian aid for the anti-Sandinista contras. Utilizing a slightly different method of assigning funds than used in this report, the Administration's report calculates that the shortfall in appropriated funds for Central America from the Commission's targets would be $760 million, assuming approval of the $300 million request for Central America in the FY87 supplemental. While strongly supporting the goals and recommendations of the Kissinger Commission, the Administration does not call for massive funding to make up the identified shortfall. Instead, it proposes to stretch out the time for achieving the Commission's goals by three years, to fiscal year 1992, with a very modest increase in overall funding levels. Excluding consideration of the emergency FY84 supplemental, the Administration's plan calls for Congress to provide a total of $6.5 billion in direct economic assistance to Central America over a stretched-out eight-year period (FY85-FY92), roughly at the rate of $0.8 billion per year, compared to the Commission's recommendation of $6.0 billion over a five-year period (FY85-FY89) at a rate of $1.2 billion per year. In short, under the Administration's new plan, the projected yearly assistance to Central America is reduced, but the overall commitment to the region is extended by three years. This is in recognition, according to the report, of the funding limitations under the Deficit Reduction Act, the difficulties in instituting fundamental reforms in Central America, and the lessthan-optimal external economic conditions for achieving the Commission's goals. The Presidential message called for expedited consideration by Congress of the request for a total of $300 million in supplemental FY87 ESF funds for the Central American democracies. Of this total, El Salvador would receive $152 million, mostly for earthquake-related assistance, Honduras would receive $65 million, and Guatemala and Costa Rica would each receive $40 million. Whatever the outcome of the Administration's request for FY87 supplemental funding for Central America, the Administration's March 1987 report becomes a new benchmark for Congress in its consideration of funding for the Kissinger Cornmission recommendations.