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United States.

FOREIGN OPERATIONS, EXPORT FINANCING,
AND RELATED PROGRAMS APPROPRIATIONS
FOR 1997 AND SUPPLEMENTAL FOR 1996

HEARINGS

BEFORE A

SUBCOMMITTEE OF THE

COMMITTEE ON APPROPRIATIONS
HOUSE OF REPRESENTATIVES

ONE HUNDRED FOURTH CONGRESS

SECOND SESSION

SUBCOMMITTEE ON FOREIGN OPERATIONS, EXPORT FINANCING, AND
RELATED PROGRAMS

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NOTE: Under Committee Rules, Mr. Livingston, as Chairman of the Full Committee, and Mr. Obey, as Ranking
Minority Member of the Full Committee, are authorized to sit as Members of all Subcommittees.
CHARLES FLICKNER, WILLIAM B. INGLEE, and JOHN SHANK, Staff Assistants,
LORI MAES, Administrative Aide

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KF27
A646

1996

Ptol

COMMITTEE ON APPROPRIATIONS

BOB LIVINGSTON, Louisiana, Chairman

JOSEPH M. McDADE, Pennsylvania
JOHN T. MYERS, Indiana
C. W. BILL YOUNG, Florida
RALPH REGULA, Ohio
JERRY LEWIS, California

JOHN EDWARD PORTER, Illinois
HAROLD ROGERS, Kentucky
JOE SKEEN, New Mexico
FRANK R. WOLF, Virginia
TOM DELAY, Texas

JIM KOLBE, Arizona

BARBARA F. VUCANOVICH, Nevada
JIM LIGHTFOOT, Iowa

RON PACKARD, California
SONNY CALLAHAN, Alabama
JAMES T. WALSH, New York

CHARLES H. TAYLOR, North Carolina
DAVID L. HOBSON, Ohio

ERNEST J. ISTOOK, JR., Oklahoma
HENRY BONILLA, Texas

JOE KNOLLENBERG, Michigan
DAN MILLER, Florida

JAY DICKEY, Arkansas

JACK KINGSTON, Georgia

FRANK RIGGS, California

MIKE PARKER, Mississippi

RODNEY P. FRELINGHUYSEN, New Jersey
ROGER F. WICKER, Mississippi
MICHAEL P. FORBES, New York

GEORGE R. NETHERCUTT, JR., Washington
JIM BUNN, Oregon

MARK W. NEUMANN, Wisconsin

DAVID R. OBEY, Wisconsin
SIDNEY R. YATES, Illinois
LOUIS STOKES, Ohio
TOM BEVILL, Alabama

JOHN P. MURTHA, Pennsylvania
CHARLES WILSON, Texas
NORMAN D. DICKS, Washington
MARTIN OLAV SABO, Minnesota
JULIAN C. DIXON, California

VIC FAZIO, California

W. G. (BILL) HEFNER, North Carolina
STENY H. HOYER, Maryland

RICHARD J. DURBIN, Illinois
RONALD D. COLEMAN, Texas

ALAN B. MOLLOHAN, West Virginia
JIM CHAPMAN, Texas

MARCY KAPTUR, Ohio

DAVID E. SKAGGS, Colorado

NANCY PELOSI, California

PETER J. VISCLOSKY, Indiana

THOMAS M. FOGLIETTA, Pennsylvania

ESTEBAN EDWARD TORRES, California
NITA M. LOWEY, New York
RAY THORNTON, Arkansas
JOSÉ E. SERRANO, New York

JAMES W. DYER, Clerk and Staff Director

(II)

96-170547

FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS APPROPRIATIONS FOR 1997 AND SUPPLEMENTAL FOR 1996

WEDNESDAY, MARCH 6, 1996.

JORDAN ARMS TRANSFERS

WITNESSES

WALTER B. SLOCOMBE, UNDER SECRETARY OF DEFENSE FOR POLICY, DEPARTMENT OF DEFENSE

ROBERT H. PELLETREAU, ASSISTANT SECRETARY OF STATE [NEA], DEPARTMENT OF STATE

CHAIRMAN'S OPENING STATEMENT

Mr. CALLAHAN. Gentlemen and members of the subcommittee, this afternoon the subcommittee will receive testimony from two senior administration officials regarding the President's proposed transfer of 16 F-16 fighter aircraft to the Government of Jordan at a cost of some $200,000,000 to the American taxpayer.

Given the recent tragic events in the Middle East, I believe our hearing today is particularly important and timely for a variety of reasons. On the one hand, this proposal has important foreign policy implications. At the same time, it also raises equally important questions of fiscal responsibility. Unfortunately, it also seems to be another troubling example of the Administration's use of the defense budget for nondefense purposes.

Finally, this proposal once again highlights the continued failure of the Administration to consult fully and openly with Congress before making multimillion dollar commitments to foreign governments. In reading the prepared remarks of our witnesses, I was struck at the similarity in testimony on Jordan provided last year. I would like to remind the witnesses that last year at the President's strong urging the Congress provided $275,000,000 to forgive nearly $500,000,000 in Jordanian debt. The Congress also approved a $100,000,000 drawdown of DOD stocks for Jordan and $30,000,000 in foreign military grants. This occurred even as the subcommittee was reducing the foreign operations budget by nearly 11 percent. Jordan is doing extremely well.

This brings me to my first point, the question of fiscal responsibility. At what point does the Administration intend to say, "That is enough?" We all know that Jordan is an important participant in the Middle East peace process. But we also know that Uncle Sam's pockets are not bottomless. Balancing the budget requires judicious use of scarce resources. I think it is time for the Adminis

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