PUBLIC POLICY UPDATE July 22, 2011 WASHINGTON UPDATE House Passes Resolution on Aid to Palestinian Authority On July

7 , the U.S. House of Representatives passed a resolution (H.RES.268) urging the Palestinian Authority (PA) to return to direct negotiations with Israel in order to resolve the IsraeliPalestinian conflict. The bill also calls upon President Obama to veto any move by the PA to declare statehood at the United Nations. Worries about a possible unity government in Palestine have also led to a provision that could suspend aid to the PA, pending a review of the unity government. This bill mirrors a similar resolution (S.RES.185) passed in the Senate in late June. House Committee Passes H.R. 2583, the Fiscal Year 2012 Foreign Relations Authorization Act This week, the House Committee on Foreign Affairs passed H.R.2583, the FY2012 Foreign Relations Authorization Act, on a party-line vote of 23-20. The markup, which clocked in at over 30 hours, was thoroughly partisan, with very few substantive bipartisan amendments adopted. The final version of the bill contains many provisions that are non-starters for Democrats, ensuring that although it will likely pass the House of Representatives, the Senate will draft its own version. Further, it is highly improbable that a State Department authorization bill will be signed into law during this session of Congress. The bill would cut authorization levels to $4.8 billion less than 2010 spending levels. Although appropriators will determine the final spending levels for 2012, this legislation serves as a sobering indicator of the House majoritys intent. The bill also ties foreign assistance to Pakistan, Egypt, the Palestinian Authority and Yemen closely to military and anti-terror considerations, a title vigorously opposed by Ranking Member Howard Berman (D-CA). Republicans rejected several efforts by Democratic representatives to boost UN peacekeeping funds. Some of the few bipartisan areas of agreement were amendments that supported religious freedom, recognized the work of the Millennium Challenge Corporation in Cape Verde, expanded the definition of foreign assistance, and supported continued U.S. leadership in the fight against malaria. Notable amendments passed and their sponsors include: Defunding the Organization of American States, Rep. Dana Rohrabacher (R-CA) Defunding the Global Climate Change Initiative, Rep. Connie Mack (R-FL) Barring economic assistance to any country that does not vote with the United States at least 50 percent of the time in the UN, Rep. Jeff Duncan (R-SC) Reduction of U.S. support to UN regular budget (not peacekeeping), Rep. Ted Poe (R-TX) Interagency development of common guidelines for foreign assistance, Rep. Ted Poe (RTX)

The House Appropriations Subcommittee on State, Foreign Operations will mark-up its 2012 spending bill next Wednesday, July 27, at 10:00 a.m.

House State, Foreign Operations Markup Still Planned for July 27 The State, Foreign Operations (SFOps) Subcommittee of the House Appropriations Committee confirmed this week that they are going ahead with the markup of their FY2012 appropriations bill on July 27, as had been planned. Reports of the postponement of the Labor-HHS-Education and Transportation markups created some confusion, but SFOps confirmed Friday their intent to proceed. The markup is on Wednesday, July 27, at 10:00 a.m., in Room H-140 of the Capitol. (Note that this is the very small room the markup has traditionally been held in, so there will be extremely limited room for outside observers). Reports are that the bill will include serious reductions for development and humanitarian accounts. It is unclear whether amendments will be offered or not; traditionally amendments have been saved for the full committee markup, but with some uncertainty as to whether a full committee markup will happen, that tradition may or may not be followed. It is unlikely that the text of the draft bill itself will be shared. With Senate appropriators holding off on most of their appropriations bills until an agreement in the debt ceiling negotiations provides a discretionary spending cap for FY2012, it is unlikely the Senate will end up considering and passing a stand-alone SFOps bill. The House bill will thus in the end serve as a starting point for House negotiations with the Senate over what ends up in a likely omnibus. UPCOMING HEARINGS Hearing: AFRICOM (U.S. African Command): Promoting Partnership for Global Security in Africa Committee: House Foreign Affairs CommitteeAfrica, Global Health, and Human Rights Subcommittee Witnesses: Donald Yamamoto, principal deputy assistant secretary of state for African affairs, State Department Vicki Huddleston, deputy assistant defense secretary, Department of Defense Sharon Cromer, senior deputy assistant administrator, Bureau for Africa, USAID When: Tuesday July 26, 2011 2:00 p.m. Where: 2255 Rayburn House Office Building Contact: 202-225-5021 http://foreignaffairs.house.gov Hearing: Reassessing American Grand Strategy in South Asia Committee: House Foreign Affairs CommitteeOversight and Investigations Subcommittee Witnesses: Aparna Pande, Hudson Institute John Tkacik Jr., Heritage Foundation; former chief of China analysis in the State Department's Bureau of Intelligence and Research Sadanand Dhume, American Enterprise Institute When: Tuesday July 26, 2011 2:30 p.m. Where: 2172 Rayburn House Office Building Contact: 202-225-5021 http://foreignaffairs.house.gov Hearing: Business Meeting Committee: Senate Foreign Relations Committee Witnesses: TBA When: Tuesday July 26, 2011 2:30 p.m. 2

Where: 419 Dirksen Senate Office Building Contact: 202-224-4651 http://foreign.senate.gov Hearing: Al Shabaab: Recruitment and Radicalization within the Muslim American Community and the Threat to the Homeland Committee: House Homeland Security Committee Witnesses: TBA When: Wednesday July 27, 2011 9:30 a.m. Where: 311 Cannon House Office Building Contact: 202-226-8417 http://homeland.house.gov Hearing: The Way Ahead in Afghanistan Committee: House Armed Services Committee Witnesses: Retired Army Gen. John Keane, SCP Partners and GSI LLC Retired Army Lt. Gen. David Barno, Center for New American Security Francis "Bing" West, former assistant secretary for international security affairs at the Defense Department When: Wednesday July 27, 2011 10:00 a.m. Where: 2118 Rayburn House Office Building Contact: 202-225-2675 http://www.armedservices.house.gov Hearing: Markup of the FY2012 Appropriations Bill for the Agencies Under its Jurisdiction Committee: House Appropriations CommitteeState, Foreign Operations and Related Programs Subcommittee When: Wednesday July 27, 2011 TBA Where: H-140 Capitol Building Contact: 202-225-2771 http://appropriations.house.gov HEARING SUMMARIES Markup of H.R.2583 House Foreign Affairs Committee July 20, 2011

Opening Statements: Chair Ileana Ros-Lehtinen (R-FL) Committed to expanding oversight. The bill supports human rights and democracy programs. Harsher oversight on possible connections to terrorist groups. Authorization will be limited to one year. Ranking Member Howard Berman (D-CA) There has not been enough time to review the bill, especially because the bill keeps changing. Authorization numbers are close to FY2011, but those levels were too low. Diplomacy and development along with military are the pillars of U.S. security strategy.

Rep. Dana Rohrabacher (R-CA) Any money we authorize today is money we are taking away from our children. Rep. Gerald Connolly (D-VA) Cutting diplomacy is a false choice. Rep. Frederica Wilson (D-FL) Concerned about cuts to peacekeeping and aid to Haiti. Diplomacy can help stop conflicts before they start. Title 1: Mack Amendmentto strike all funds to the OAS Rep. Connie Mack (R-FL) The Organization of American States (OAS) has failed to defend freedom and democracy. Ranking Member Howard Berman (D-CA) We have a treaty obligation to pay our funds to the OAS; the amendment would go against the treaty. Venezuela is trying to weaken the OAS, so if we cut funding we are helping him. Rep. Gary Ackerman (D-NY) This is ridiculous, we might as well dig a moat around the U.S. and withdraw from the world. Rep. Gregory Meeks (D-NY) This seems like a step towards isolationism. Vote: 22 Yes-20 No Paynes Amendment on United Nationsto restore the original amount for peacekeeping operations to $1.92 billion Rep. Donald Payne (D-NJ) Ban Ki-Moon requested that the U.S. support peacekeeping. Peacekeeping is a vital role to the UN. Rep. Jean Schmidt (R-OH) The UN has credit for peacekeeping, which should be used to cover Sudan. Should not approve an authorization of an amount more than the UN request. Vote: 17 Yes-21 No Poe Amendment 164to cut 25 percent of the UN regular budget contribution Rep. Ted Poe (R-TX) This does not impact the peacekeeping funding. This has to do with the corruption and inefficient bureaucracy in the UN. Ranking Member Howard Berman (D-CA) This goes against the treaty obligation that the U.S. has to the UN. This amendment does nothing to address the issues that Rep. Poe has mentioned. Rep. Russ Carnahan (D-MO)amendment to the amendment This amendment is meant to make sure that anti-narcotics, demining and police training programs are not affected by this cut. Vote on Amendment to the Amendment: 16 Yes-23 No Vote on Poe Amendment: 23 Yes-17 No

Carnahan Amendment 560to raise the U.S. cap on contributions to the UN to 27 percent Rep. Russ Carnahan (D-MO) Peacekeeping support is cheaper for the U.S. than setting up a U.S. mission. The U.S. has veto power over UN peacekeeping missions, which provides that peacekeeping missions will be in U.S. interest. Rep. Gerry Connolly (D-VA) Without peacekeeping, U.S. taxpayers would be paying to unilateral action such as Iraq. Ranking Member Howard Berman (D-CA) If we are going to have a reduction, then the Republicans should tell us which peacekeeping mission we should cut. Vote: 18 Yes-23 No Payne Amendment 561to prioritize the UN peacekeeping missions in Sudan Rep. Donald Payne (D-NJ) Some areas of peacekeeping need more support. Several peacekeeping operations in Abyei and South Sudan should be protected from funding cuts. Rep. Jean Schmidt (R-OH) Should not prioritize missions over each other. The U.S. has already overpaid the peacekeeping missions. Vote: 18 Yes-21 No Bass Amendmentto prioritize the UN peacekeeping missions in the Democratic Republic of the Congo (DRC) Rep. Karen Bass (D-CA) UN peacekeepers play an important role in stabilizing weak countries. Vote: 18 Yes-25 No Wilson Amendmentto prioritize the UN peacekeeping missions in Haiti Vote: 19 Yes-25 No Higgins Amendmentto restore funding to the International Drug Commission Rep. Brian Higgins (D-NY) The commission is important for controlling the water quality of the Great Lakes. The Great Lakes are an important source of fresh water and it is important that we protect this resource. Ranking Member Howard Berman (D-FL) This amendment matches the administrations request for FY2012. Vote: 18 Yes-25 No Mack Amendmentregarding the Keystone XL Pipeline as an important step to reducing American dependency of foreign oil Rep. Gerald Connolly (D-VA) The fact that the pipeline ends in New Orleans makes it seem that the oil will be exported, which would not help curb U.S. imports from Venezuela. Rep. Connie Mack (R-FL) The pipeline ends in New Orleans because that is where the refineries are. Vote: 30 Yes-14 No

Title II: Berman/Cicilline Amendmentto encourage religious tolerance in Turkey Rep. Gerald Connolly (D-VA) Turkey has made a lot of progress but needs greater religious freedoms. Vote: 43 Yes-1 No Deutch Amendmentto establish State Department Bureau of Counterterrorism Rep. Theodore Deutch (D-FL) Would allow for greater counterterrorism efforts and more coordination. Rep. Edward Royce (R-CA) Elevating the Department on Counterterrorism would not make it more effective. The Obama administration has the authority to do this, but it is not a priority for them. Vote: 18 Yes-20 No Deutch Amendmentto report on the resources for and effectiveness of sanctions on Iran Rep. Theodore Deutch (D-FL) Irans lack of coherence to nonproliferation means we need more action against them. Voice Vote: Adopted Title III: No amendments Title IV: InterAction was unable to cover statements made on the amendments under Title IV. Adopted Amendments: Poe/Duncan AmendmentEstablishes website to track U.S. foreign assistance Manzullo AmendmentProhibits funding to USAID for the use of Development Innovation Ventures program Duncan AmendmentRequires financial report of all organizations whose funding is made up of 50 percent or more U.S. government funding McCaul AmendmentLimits the amount of money awarded to one contractor to 50 percent of the funds for the Merida Initiative in Mexico Carnahan AgreementSupports training of youth in Africa in business and leadership Cicilline/Keating AmendmentSupports Millennium Challenge Cooperation project in Cape Verde Poe AmendmentRequires a report on U.S. foreign assistances contribution to the goals and priorities of the federal government Deutsh AmendmentCuts antiterrorism, demining and nonproliferation funding to $708,540,000

Mack AmendmentCuts assistance to the governments of Argentina, Venezuela, Nicaragua, Ecuador and Bolivia Deutsh AmendmentRequires a report to the House Foreign Relations Committee on resources and effectiveness of the Office of Terrorism Finance and Economic Sanctions Policy of the Department of State Duncan AmendmentCuts assistance to governments that disagree with the U.S. and the UN Griffin AmendmentCuts $1,500,000 from the Trilateral Assistance Program Berman AmendmentExpands the definition and intent of foreign assistance Detuch AmendmentLimits funding for International Narcotics Control and Law Enforcement to $1.597 billion Fortenberry AmendmentHolds sex-selection abortion as a human rights violation Fortenberry Amendment 2Supports reducing the prevalence of malaria Rejected Amendments: Schwartz AmendmentReduces tariffs to Millennium Challenge Cooperation compact eligible countries Payne AmendmentSeeks to improve nutritional quality, quality control, and cost effectiveness of U.S. food assistance Berman AmendmentStrikes the Global Gag Rule Vote: 17 Yes-25 No Rohrabacher AmendmentLimits all assistance to Pakistan Vote: 5 Yes-39 No Rohrabacher AmendmentLimits all assistance to Iraq Vote: 5 Yes-39 No Title V: Rohrabacher AmendmentWalls off $15 million for Voice of American China radio programming Rep. Dana Rohrabacher (R-CA) This will not increase spending, but make sure that we can counteract Chinese propaganda. Voice Vote: Adopted Sherman AmendmentSupports Voice of America broadcasts in Shin in Pakistan Rep. Brad Sherman (D-CA) So far, only Urdu has been used to reach the Pakistani people. Voice Vote: Adopted

Title VI: Fortenberry AmendmentRequires a report on progress to ameliorate violations of religious freedom Voice Vote: Adopted Schwartz AmendmentAdd to report on multilateral efforts to isolate Israel Voice Vote: Adopted Title VII: No amendments Title VIII: Smith AmendmentTo appoint a special envoy to the Great Lakes region in Africa Voice Vote: Adopted Faleomavaega AmendmentGives the president to reinstate funds for the nuclear center if he sees it is against U.S. security interests Voice Vote: Adopted Mack AmendmentEliminates funding for the Global Climate Change Initiative Ranking Member Howard Berman (D-CA) This amendment would hurt many nations, including the U.S. Rep. Renee Ellmers (R-NC) There should not be money being paid to climate change, because there is no proof that it is manmade. Vote: 25 Yes-18 No Schwartz AmendmentRecognizes the value of cultural exchanges Voice Vote: Adopted Poe AmendmentTo protect the civilians in Camp Ashraf Voice Vote: Adopted Murphy AmendmentFor Poland to become part of visa waiver program Committee Jurisdiction Issue Fortenberry/Payne Block Amendments Implement Lords Resistance Army disarmament strategy Investigate and impose sanction of war crimes criminals in Sudan and South Sudan Provide technical support for South Sudan oil sector Require U.S. president to submit, 15 days in advance, justification for waiving child soldier measure Require U.S. to address water borne illnesses as health priority Report on Chinas activities in Africa Ensure public diplomacy is a top priority of the U.S. Voice Vote: Adopted

Payne AmendmentUrges Cote DIvoire to continue on the path to democracy Voice Vote: Adopted Berman AmendmentProvides penalties for companies cooperating with the Arab Leagues boycott of Israel Voice Vote: Adopted Smith AmendmentUrges against Japans child adoption policy Voice Vote: Adopted Faleomavaega Bloc AmendmentsKeeps funding for the East-West center and eliminate provisions with regards to Vietnam East-West Center Vote: 17 Yes-26 No Vietnam Voice Vote: No Smith AmendmentOpposes the religious discrimination in Vietnam Voice Vote: Adopted Connolly/Berman AmendmentContinues the sale of jets to Taiwan Rep. Dan Burton (R-IN) Expand to include diesel powered submarine (accepted). Voice Vote: Adopted Rohrabacher AmendmentRequires the U.S. to stop cooperating with China with regards to the space program Voice Vote: Adopted Cicilline/Keating AmendmentAuthorizes activities that have already been taking place in coordination with the Azores air force base on Portugal Voice Vote: Adopted Smith AmendmentCalls for the release of Chen Guangcheng, Chinese human rights activist, and other activists as well Voice Vote: Adopted Engel/Mack AmendmentTo build embassy in Grenada, with no additional cost, by reassigning funds Voice Vote: Adopted Berman AmendmentLimits funds to Sri Lanka pending certification by the secretary of state Voice Vote: Adopted Griffin AmendmentPrevents implementation of the presidential order for contractors to disclose political contributions Rep. David Cicilline (D-RI) This is an issue of transparency and by repealing the order we are hindering transparency. Vote: 27 Yes-17 No Keating AmendmentEstablishes a working group mechanism that will allow for inter-department information exchange on conflict situations Vote: 20 Yes-24 No 9

Rohrabacher AmendmentDirects the secretary of state to enter visa negotiations with China about the disproportionate number of reports in the respective countries Voice Vote: Adopted Engle AmendmentLimit funding to the Palestinian Authority to bring them the direct negotiations with Israel Vote: 44 Yes-0 No Smith AmendmentProvides a reminder of the plight of the Coptic Christians Voice Vote: Adopted Berman Amendment 571Codifies reporting on Lesbian, Gay, Bisexual and Transgender (LGBT) issues and directs the secretary of state to work with foreign governments to challenge their antihomosexual laws or laws that curb LGBT rights Vote: 21 Yes-23 No Murphy AmendmentDirects embassies to follow the Buy America law, with reasonable exceptions Rep. Eni Faleomavaega (D-American Samoa) Add the territories of Puerto Rico, Guam etc. to the areas affected by the law. Tabled: possible Jurisdiction issue Smith AmendmentEnsures human rights and democracy are priorities in U.S. relations with Russia Voice Vote: Adopted Meeks/Burton AmendmentDirects that strengthening relations with Russia and building Russian democracy shall be a priority of the U.S. Voice Vote: Adopted Duncan AmendmentLabel the Muslim Brotherhood as a terrorist organization Ranking Member Howard Berman (D-CA) Attacking the Egyptian Brotherhood like this could play against the U.S. goals in Egypt. Amendment Withdrawn Duncan AmendmentLimits direct and indirect assistance to the Muslim Brotherhood Voice Vote: Adopted Berman Bloc AmendmentsProvides private enterprise funds for Pakistan, Egypt and Tunisia out of already authorized funds Amendment Withdrawn to prepare for floor action Title IX: Berman AmendmentAllows the U.S. to continue assistance to Lebanon while limiting Hezbollah influence by distinguishing what is Hezbollah and what is not Hezbollah Vote: 22 Yes-22 No (not agreed to) Schwartz AmendmentSays that Egypt has to report back on legal and political reforms Voice Vote: Adopted 10

Berman AmendmentSeeks to strengthen international and national arms export controls through diplomatic efforts Voice Vote: Adopted Title X: No Amendments End of the Bill Amendments: Berman AmendmentAttaches H.R. 1280 to this bill Not Under Committee Jurisdiction Berman AmendmentCreates a new title on nonproliferation, creating a state sponsor of proliferation list Voice Vote: Adopted Cicilline AmendmentCalls for the elevation of the promotion of human rights to equal level of political and economic relations Rep. Christopher Smith (R-NJ) There are termssuch as sexual minorities and fundamental freedomsthat need to be defined. Offered amendment to get greater definition of terms. Vote on Amendment of Amendments: 23 Yes-21 No Voice Vote on Amendment: Adopted Amendments on Bloc: Voice Vote: Adopted Cicilline AmendmentDiscourages governments from condoning murder and other physical violence based on victims sexual identity Ranking Member Howard Berman (D-CA)amendment to amendment Change from persons to individuals. Voice Vote on Amendment to Amendment: Adopted Voice Vote on Amendment: Adopted Engel AmendmentLimits assistance to the Palestinian Authority on condition of the acceptance of the right to exist Voice Vote: Adopted Meeks AmendmentTo fully enforce travel regulations to Cuba and sanction violations Rep. David Rivera (R-FL)amendment to the amendment Enforce travel regulations of 2009. Vote on Amendment to the Amendment: 36 Yes-6 No Voice Vote on the Amendment: Adopted Vote on Entire Bill: 23 Yes-20 No

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Nominations of the Ambassador to Mexico and the Ambassador to the Republic of Guatemala Senate Foreign Relations Committee July 20, 2011 Witnesses: Earl Wayne, to be ambassador to Mexico Arnold Chacon, to be ambassador to the Republic of Guatemala

Opening Statements: Sen. Robert Menendez (D-NJ) (presided over the hearing) U.S. needs to work to ensure security in Central America. The U.S.-Mexico relationship is mutually beneficial, and both economies prosper hand in hand. Ranking Member Richard Lugar (R-IN) Mexico is the third largest trade partner with the U.S. Mexico has struggled with organized crime and drug cartels. Mexicos insecurity is spilling into Central America. Guatemalas large border with Mexico is suitable for drug gangs. Mexicos instability poses existential threat to the U.S. and even has commercial consequences. Sen. Marco Rubio (R-FL) Cannot stress enough the importance of U.S. relationship with Mexico. Security issues of U.S. and Mexico inextricably linked. Democratic institutions in Guatemala still fragile. Earl Wayne: U.S.-Mexico relationship is complex and effects Americans daily. Gained experience in the areas of economic grown and in improving perception of American abroad during previous service as Under Secretary for Economic, Business, and Agricultural Affairs and as Ambassador to Argentina. U.S. interests with Mexico go beyond crime and drug issues and cooperation under the Merida Initiative have broadened. U.S. has provided $400 million to the Merida agreement and it will reach $900 million by the end of this year. Mexico is the second largest export market of U.S. and ranks third in U.S. trade partners. U.S. and Mexico make products together and their economies are closely tied. Arnold Chacon: Will draw from experience as Deputy Chief of Mission to Spain. Guatemala faces challenges in youth employment, child malnutrition, high rates of crime, drug trafficking, poor education, and corruption. Guatemalas elections take place this September. Will work towards strengthening democracy in Guatemala.

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It is important that the U.S. ensures that Guatemala uphold its obligations under the Dominican Republic-Central American Free Trade Agreement (DR-CAFTA).

Questioning: Sen. Robert Menendez (D-NJ) 1. Is the U.S. making the right investments in the Merida agreement to achieve U.S. and Mexican interests? Wayne: o We are moving in the right direction. o There has been a mix of technical assistance in addition to training in the areas of law enforcement and the rule of law that has been effective. o Equipment has allowed for better tracking of drugs. o Mexico has been improving its institutions. Ranking Member Richard Lugar (R-IN) 1. Hundreds of American families have been struggling to adopt Guatemalan children. Are you aware of this dilemma and will you work on this issue? Chacon: o There are currently 350-400 pending cases. o If nominated, plan on issuing a complaint. 2. The Mexican oil industry is on the decline. How might the monopolistic energy market lead to foreign investment? Wayne: o Mexico is currently second-largest supplier of oil to U.S. o U.S. and Mexico have been looking at the potential of wind energy in Baja. o Upcoming elections will host debate on energy issue. Sen. Mark Udall (D-CO) 1. Should the U.S. be worried about a change in the Mexican position on the Merida agreement? Wayne: o There is a strong consensus that this effort needs to continue. o Mexico does not have any alternative strategies to address the issue of organized criminal activity. 2. Guatemalans have a chronic malnutrition problem with 65 percent of the indigenous population malnourished and 35 percent of nonindigenous persons. How will cuts in USAID effect U.S. efforts to combat this problem in Guatemala? Chacon: The Feed the Future Program should ensure that the U.S. makes an important impact on this issue. Sen. Marco Rubio (R-FL) 1. Will human trafficking be a cornerstone of U.S. engagement with these governments? Wayne: o This issue needs to be one of the highest priorities. o Mexican government recognizes that human trafficking is a serious issue. Chacon: Guatemala has made progress on this issue, as it moved up from the third (bottom) tier to the second on the State Departments human trafficking tier placement report.

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2. The U.S. has a migration corridor with Mexico. The humanitarian situation for those attempting to migrate into the U.S. is dire and the rape of women is widespread. What are the drivers behind this issue? Wayne: o Drivers of these movements are economic opportunity in the U.S. and little prospects for advancement in home country. o Migrant flows from Mexico have declined significantly in recent years as education and job opportunities are rising and U.S. economy is in recession. Chacon: o The main driver in Guatemala is the income distribution, which is the 12th worst in the world. o Majority of people in Guatemala are impoverished. Sen. Robert Menendez (D-NJ) 1. How can the U.S. strengthen economic ties with Mexico? Wayne: o There needs to be more dialogue with Mexican officials and in the private sector on both sides of the border to see what they perceive could improve economic relations. o U.S. and Mexican governments should make regulations more harmonious.

Nominations of Assistant Secretary of State for Legislative Affairs and Assistant Secretary of State for Administration Senate Foreign Relations Committee July 19, 2011 Witnesses: David Adams, to be assistant secretary of state for legislative affairs Joyce Barr, to be assistant secretary of state for administration

Opening Statements: Sen. Tom Udall (D-NH) (presided over the hearing) The State Department Bureau of Administration is a very important part of the Department of State. Oversight is an important function of the Bureau of Administration. The State Departments Bureau of Legislative Affairs is an important source of information for congressional staff. David Adams: Experiences as congressional staff will inform the job if confirmed. There needs to be a strong relationship between the State Department and Congress. Will work as an interpreter to help the State Department and Congress understand each other. Macedonia is still working on its candidacy for European Union (EU) membership.

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Joyce Barr: The Bureau of Administration is heavily involved in transitioning the mission in Afghanistan from the Defense Department to the State Department. Accountability and efficiency are important goals of the Bureau of Administration. Questioning: Sen. Tom Udall (D-NM) 1. How will budget cuts impact the oversight process? Barr: Started a fund from procurement fees that has allowed the State Department to hire more oversight officers. 2. How will you improve the conditions of contract workers? Barr: o Include trafficking training for contractors and contracting officers. o Have more oversight of the camps and training for oversight officers. 3. There have been problems with the International Law Enforcement Academies (ILEA) program not being able to provide classes, how will you address this issue? Barr: There are two contracts for this program and they are being looked at and one will be open for procurement soon. Sen. Jim Webb (D-VA) 1. Congress has had problems receiving replies from the Department of State; most of the responses come from the Bureau of Legislative Affairs even though it does not have a policy making role. Why is this? Adams: o Letters are given to the concerned bureaus and they draft the policy letters. o The Secretary of State has delegated the responsibility of correspondence with Congress to the Bureau of Legislative Affairs. Sen. Tom Udall (D-NM) 1. What needs to be done to improve contracting and contracting oversight? Barr: o Most contracts are being administered in Washington, D.C., which allows for improved oversight. o Will continue to press for consolidating contracts. 2. Is the Department of State working to reduce the number of contractors and increase civilian personnel for its various projects? Barr: o Use contractors on nondiscretionary work. o Hired more diplomatic security agents and more oversight. 3. How will you include small businesses in contracting? Barr: o This is a high priority, which allows the State Department to have an impact in the United States. o Allows for a bigger pool of possible partners. 4. What should be done to improve communication between Congress and the State Department? Adams: o Have the State Department be more visible in Congress in new ways. o More frequent meetings with congressional staff. 15

5. Should reporting to Congress be changed for the State Department? Adams: Look at reports that have been required for a long time and see if they are still necessary or relevant. 6. How will you work with USAID? Adams: Would like to bring USAID and State Department legislative bureaus together to coordinate approaches. U.S. Policy in Yemen Senate Committee on Foreign RelationsSubcommittee on Near Eastern and South and Central Asian Affairs July 19, 2011 Witnesses: Panel One: Janet Sanderson, deputy assistant secretary of state for Near Eastern affairs, Department of State Christa Capozzola, deputy assistant administrator, Bureau for Democracy, Conflict, and Humanitarian Assistance, USAID Daniel Benjamin, coordinator for counterterrorism, Department of State Panel Two: Christopher Boucek, Carnegie Middle East Program Daniel Green, Washington Institute on Near East Policy Panel One: Opening Statements: Chair Robert Casey (D-PA) President Salehs departure has led many to question Yemens ability to control al-Qaeda in the Arabian Peninsula (AQAP). U.S. policy in Yemen needs to include three components: o Better understanding of political opposition and prospect of democratic transition; o Be prepared to deal with a humanitarian crisis; One-third of the population is undernourished and water is scarce; Some of the worst education levels in the world (32 percent of girls are attending secondary school); o Develop long-term strategy to deal with escalating conflict in Yemen; Must have civilian component in order to fight extremism among the population. Ranking Member James Risch (R-ID) Yemen could be potentially dangerous with piracy and terrorism. Department of Defense pursuing counterterrorism policies, but a more comprehensive strategy encompassing the State Department is needed. Daniel Benjamin: AQAP has developed capacity to launch attacks against the U.S.: o AQAP took advantage of the power vacuum, especially in southern Yemen. U.S. needs to promote good governance and the rule of law while training Yemenis to fight AQAP effectively. 16

Christa Capozzola: Trade barriers are contributing to humanitarian problem. Overarching goal of USAID is to mitigate drivers of extremism: o Community-led activities have been most effective (e.g., cash for work, vocational training, support for small farmers, maternal health programs); o Strengthen role of civil society is another mission. USAID is working with international partners in key areas of concern and working to prepare Yemen for transition through contingency planning. It is in Americas national security interest to continue to provide aid to Yemen. Janet Sanderson: The civil unrest is rooted in poor governance: o Unemployment, inflation, population, national resource scarcity and food prices have all been rising and putting stress on Yemeni people. U.S. is continuing to engage with Saleh government while also engaging interim government headed by Al-Haddi in addition to the opposition. The goal is to ensure a stable and well governed Yemen. Questioning: Chair Robert Casey (D-PA) 1. Is there any current information on the transitional council and whos in charge? Sanderson: o President Saleh is interested in returning to Sanaa. o The day-to-day governance has been directed by Vice President Al-Haddi, who is acting as president and who has been meeting with the opposition and with protestors. o Transitional council has no constitutional authority and little traction. Ranking Member James Risch (R-ID) 1. Can you describe the situation in the southwest and the influence of al-Qaeda? Sanderson: o There is a growing space in which militants have been able to operate, with Zinjibar under siege by AQAP. o Yemeni government lacks control over five provinces. Sen. Christopher Coons (D-DE) 1. How is our relationship with Saudi Arabia on the issue of Yemen? Benjamin: o We consult with the Saudis, as they are the most influential power in the region and their interests align with those of the U.S. Chair Robert Casey (D-PA) 1. What evidence is there that addressing poverty and desperation also fights extremism? Capozzola: o No concrete analysis done yet, but some anecdotal evidence exists o 14,000 youths have been reached; small business training has been effective; significant rise in the number of women who have received better

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access to health care; 15,000 have benefited from improved water access, which has caused tribal conflict to fall. Panel Two: Opening Statements: Daniel Green The security situation in the south has rapidly deteriorated. Key battle with AQAP is in the country side, so decentralized approach needed. The U.S. should adopt an approach that includes the following: o Foreign internal defense program that focus on counterterrorism; o Foreign internal governance strategy; o Leverage humanitarian aid more effectively to undermine AQAP; o Appoint special envoy to support ambassador to Yemen. Christopher Boucek Initial fears of violence do not reflect reality, and there has not been civil war. Failing economy is at the heart of political situation. Yemen has one of the highest population growth rates in the world. It is in U.S. interest that state failure or collapse is avoided. The perception of the U.S. in Yemen is that it only cares about counterterrorism: o U.S. assistance should be broader. Saudis have not yet adopted one clear policy with respect to Yemen. Questioning: Chair Robert Casey (D-PA) 1. What is your assessment of the corruption in Yemen and the governments ability to meet its peoples basic needs? Boucek: o 80 percent of the conflict is over water. o U.S. needs to implement projects that better meet water needs. 2. What do you foresee will be the governing system in Yemen? a. Green: o System where elites negotiate settlement and where there will be greater power sharing, but Saleh will not be completely out. Ranking Member James Risch (R-ID) 1. What is the greatest economic concern in Yemen? Boucek: o Oil is expected to run out within 10 years. o Without oil revenue, the government will have no money to fund its expenditures or meet its debt obligations.

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ARTICLES AND REPORTS CNN International July 20: U.N. declares famine in southern Somalia The UN has declared a famine in two Somali regions, warning that the famine could easily spread to other regions of Somalia. The conflict in the area has exacerbated the draught conditions, causing many to flee to the overcrowded Dabaab refugee camp in Kenya. July 22: Militants: Aid ban in Somalia still in place Al-Shabaab has reversed its pledge to allow aid groups into Somalia, claiming that aid workers are spies and do not actually do aid work. They have also denied that Somalia is in a state of famine, saying that the current situation is only a drought. July 22: Amid famine, Somalis flock back to the war-torn city they fled People are fleeing to camps in Mogadishu to receive food aid. However, delivering food aid in Mogadishu is becoming more difficult with the constant presence of al-Shabaab. The main problem is that there is no party in Somalia to negotiate with about the delivery of food aid. The Guardian July 19: The Bill and Melinda Gates Foundation expands its sanitation programme Sanitation is getting a new focus, with the Bill and Melinda Gates Foundations new $42 million grant program. The focus will be on innovation of sanitation methods that are cheap and sustainable. July 20: Polio resurgence casts doubt on global eradication hopes The resurgence of Polio in 14 countries where it had been previously eradicated raises doubts about the goal of global eradication of the disease. Four countries are at an epidemic level, while Pakistan, Chad and the Democratic Republic of the Congo are countries of great concern. NRP July 22: Terrorists, U.S. Policy Hinder Famine Aid To Somalia A NPR interview with InterActions Joel Charny discusses how both al-Shabaab and U.S. policy are impacting the delivery of food aid to Somalia. Washington Post July 19: UN wants further security, access guarantees for Somalia famine relief operation The UN is still unable to reach 1 million people in Somalia that are suffering from the drought. The conditions on the ground are hindering aid delivery, and the UN would like further security promises before it enters these areas. July 20: U.N.: Somalia suffering from famine The U.S. has pledged an additional $28 million of aid to Somalia in a response to the UNs declaration of famine in the region. Donor countries have been criticized for their slow response to the problem. Disclaimer: Articles linked in the Update are intended to provide a dashboard view of newsworthy and topical issues from popular news outlets that will be of interest to readers of the Update. The articles are an information sharing vehicle rather than an advocacy tool. They are in no way representative of the views of InterAction or the U.S. NGO community as a whole.

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