Andean Counterdrug Initiative (ACI) and Related Funding Programs: FY2006 Assistance

Order Code RL33253

CRS Report for Congress

Received through the CRS Web

Andean Counterdrug Initiative (ACI) and Related

Funding Programs: FY2006 Assistance

January 27, 2006

(name redacted)

Analyst in Foreign Affairs

Foreign Affairs, Defense and Trade Division

Congressional Research Service ˜ The Library of Congress

Andean Counterdrug Initiative (ACI) and Related

Funding Programs: FY2006 Assistance

Summary

In 2005, Congress considered a number of issues relating to the Andean region

and drug trafficking, including continued funding for the Andean Counterdrug

Initiative (ACI) and conditions on U.S. assistance. In addition to ACI, Andean

countries benefit from Foreign Military Financing (FMF), International Military

Education and Training (IMET) funds, and other types of economic aid. Congress

continues to express concern with the volume of drugs readily available in the United

States and elsewhere in the world. The three largest producers of cocaine are

Colombia, Bolivia, and Peru. Ninety percent of the cocaine in the United States

originates in, or passes through, Colombia.

The United States has made a significant commitment of funds and material

support to help Colombia and the Andean region fight drug trafficking since the

development of Plan Colombia in 1999. From FY2000 through FY2005, the United

States has provided a total of about $5.4 billion for the region in both State

Department and Defense Department counternarcotics funds. The United States also

provides funding for Development Assistance (DA), Child Survival and Health

(CSH), and Economic Support Funds (ESF) to some countries in the region. Since

2002, Congress has granted expanded authority to use counternarcotics funds for a

unified campaign to fight both drug trafficking and terrorist organizations in

Colombia. Three illegally armed groups in Colombia participate in drug production

and trafficking, and have been designated foreign terrorist organizations by the State

Department. In 2004, Congress also increased the level of U.S. military and civilian

contractor personnel allowed to be deployed in Colombia, in response to an

Administration request.

For FY2006, Congress approved the Administration’s request for $734.5 million

for ACI in the Foreign Operations Appropriations Act (H.R. 3057/P.L. 109-102). As

part of the requested amount for ACI, the Administration had requested $21 million

for the Air Bridge Denial Program; Congress provided $14 million. The request also

included $40 million for a Critical Flight Safety Program that is described as the first

installment of a multi-year program to upgrade and refurbish aircraft used for

eradication and interdiction missions. Congress provided $30 million.

In the House, the Foreign Relations Authorization Act (H.R. 2601) was passed

with provisions relating to the demobilization process, tax code enforcement in

Colombia, and the transfer of aircraft to the Colombian Navy. The Senate did not

finish consideration of its version (S. 600). It would authorize funding for the

Andean Counterdrug Initiative and includes a number of conditions on assistance

consistent with current law. The FY2006 National Defense Authorization Act (H.R.

1815, P.L. 109-163) authorized funds for Defense Department interdiction activities.

This report will not be updated. For further information, see CRS Report

RL32774, Plan Colombia: A Progress Report; CRS Report RL32250, Colombia:

Issues for Congress; and CRS Report RL32337, Andean Counterdrug Initiative

(ACI) and Related Funding Programs: FY2005 Assistance.

Contents

Andean Counterdrug Initiative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

FY2006 Funding Levels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Related Funding Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Foreign Military Financing (FMF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

International Military Education and Training (IMET) . . . . . . . . . . . . . . . . . 4

Defense Department Counternarcotics Account . . . . . . . . . . . . . . . . . . . . . . 5

U.S. Counternarcotics Assistance By Country . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Colombia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Peru . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Bolivia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Ecuador . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Venezuela . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Panama . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Congressional Conditions on ACI Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Expanded Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Personnel Caps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Helicopters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Colombian Human Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Funding Earmarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Aerial Fumigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Prohibition on Participation in Combat Operations . . . . . . . . . . . . . . . . . . . 18

Bolivian Human Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Demobilization of Illegally Armed Groups in Colombia . . . . . . . . . . . . . . 18

Maritime Refueling Vessel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Major Legislative Activity in the 109th CongressFirst Session . . . . . . . . . . . . . . 19

FY2006 Foreign Operations Appropriations Act . . . . . . . . . . . . . . . . . . . . 19

House Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Senate Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Foreign Operations Conference Report . . . . . . . . . . . . . . . . . . . . . . . . 22

Foreign Relations Authorization Act, FY2006 and FY2007 . . . . . . . . . . . . 23

National Defense Authorization Act, FY2006 . . . . . . . . . . . . . . . . . . . . . . . 23

Appendix B. Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

List of Figures

Figure 1. Andean Counterdrug Initiative Countries . . . . . . . . . . . . . . . . . . . . . . 24

List of Tables

Table 1. Andean Counterdrug Initiative FY2006 Foreign Operations

Conference Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Table 2. U.S. Counternarcotics Assistance to Colombia, FY2000-FY2006 . . . . . 6

Table 3. U.S. Counternarcotics Assistance to Peru, FY2000-FY2006 . . . . . . . . . 8

Table 4. U.S. Counternarcotics Assistance to Bolivia, FY2000-FY2006 . . . . . . . 9

Table 5. U.S. Counternarcotics Assistance to Ecuador, FY2000-FY2006 . . . . . 11

Table 6. U.S. Counternarcotics Assistance to Brazil, FY2000-FY2006 . . . . . . . 12

Table 7. U.S. Counternarcotics Assistance to Venezuela, FY2000-FY2006 . . . 13

Table 8. U.S. Counternarcotics Assistance to Panama, FY2000-FY2006 . . . . . 14

Andean Counterdrug Initiative (ACI) and

Related Funding Programs: FY2006

Assistance

In 2005, Congress considered a number of issues relating to the Andean

Counterdrug Initiative, the U.S. assistance program to help Colombia and its

neighbors address drug trafficking and economic development issues.1 These issues

included ongoing concerns with the effectiveness of the program, funding levels,

human rights, and the future of the program. The region has been viewed as

particularly important because it produces virtually all of the world’s cocaine and

increasing amounts of high quality heroin. It is estimated that 90% of the cocaine

coming to the United States originates in, or passes through, Colombia. Moreover,

the stability of Colombia and the region is threatened by Colombia’s longstanding

leftist guerrilla insurgency and rightist paramilitary groups, which are believed to be

largely funded by their participation in illegal narcotics production and trafficking.

The Andean Counterdrug Initiative is the primary U.S. program that supports

Plan Colombia, a six year plan developed by President Andres Pastrana (1998-2002)

of Colombia, and continued by current President Alvaro Uribe. While ACI is the

primary program, it is not the only one supporting counternarcotics and economic

development in the Andean region. Countries in the region also receive Foreign

Military Financing (FMF) and International Military Education and Training (IMET).

The Department of Defense supports drug interdiction operations from its own

counternarcotics account. In addition, the United States provides economic

development aid in the form of Development Assistance (DA), Child Survival and

Health (CSH), and Economic Support Funds (ESF).2 These programs are not

considered part of the Andean Counterdrug Initiative, although they support many

programs which are tangentially related, such as poverty reduction and infrastructure

improvements.

1

For earlier action, see CRS Report RL32337, Andean Counterdrug Initiative (ACI) and

Related Funding Programs: FY2005 Assistance, by (name redacted), and CRS Report

RL32021, Andean Regional Initiative (ARI): FY2003 Supplemental and FY2004 Assistance

for Colombia and Neighbors, by (name redacted) and (name redacted).

2

For more information on economic development programs in Latin America, see CRS

Report RL32487, U.S. Foreign Assistance to Latin America and the Caribbean, coordinated

by (name redacted).

CRS-2

Andean Counterdrug Initiative

The Andean Counterdrug Initiative was designed to provide assistance to seven

countries in the broadly defined Andean region: Bolivia, Brazil, Colombia, Ecuador,

Panama, Peru, and Venezuela.3 The region is important to the U.S. drug policy

because it includes three major drug producing countries (Colombia, Bolivia, and

Peru) where virtually all the world’s cocaine and significant quantities of high quality

heroin destined for the United States are produced. U.S. objectives for the ACI

program are to eliminate the cultivation and production of cocaine and opium, build

law enforcement infrastructure, arrest and prosecute traffickers, and seize their assets.

The region also includes two major oil producing countries (Venezuela and

Ecuador), members of the Organization of Petroleum Exporting Countries (OPEC),

which supply significant quantities of oil to the United States. For the five traditional

Andean countries (Colombia, Venezuela, Ecuador, Peru, and Bolivia), the Andes

mountain range that runs through South America poses geographical obstacles to

intra-state and inter-state integration, but the countries are linked together in the

Andean Community economic integration pact.

U.S. support for Plan Colombia began in 2000, when Congress passed

legislation providing $1.3 billion in interdiction and development assistance (P.L.

106-246) for Colombia and six regional neighbors. Funding for ACI from FY2000

through FY2005 totaled nearly $4.3 billion. ACI is managed by the State

Department’s Bureau of International Narcotics Control and Law Enforcement

Affairs (INCLE). Some ACI funds are transferred to the U.S. Agency for

International Development (USAID) for alternative development programs.

ACI funds are divided between programs that support eradication and

interdiction efforts, as well as those focused on alternative crop development and

democratic institution building. On the interdiction side, programs train and support

national police and military forces, provide communications and intelligence

systems, support the maintenance and operations of host country aerial eradication

aircraft, and improve infrastructure related to counternarcotics activities. On the

alternative development side, funds support development programs in coca growing

areas, including infrastructure development, and marketing and technical support for

alternative crops. It also includes assisting internally displaced persons, promoting

the rule of law, and expanding judicial capabilities.

ACI also funds the Air Bridge Denial Program that is currently operational in

Colombia, and temporarily suspended in Peru, after an accidental shooting down of

a civilian aircraft carrying U.S. missionaries in 2001. After the incident, in which

two Americans died, the program in both countries was suspended until enhanced

safeguards were developed. The program in Colombia resumed in August 2003. The

program supports an aircraft fleet, pilot training, and logistical and intelligence

support. The program tracks aircraft suspected of being involved in drug trafficking,

3

Panama and Brazil are not considered Andean countries, but are included in ACI because

they each share borders with Colombia. Bolivia is an Andean country but does not share

a border with Colombia.

CRS-3

and forces them to land for inspection. If the aircraft is repeatedly unresponsive, it

may be shot down, at the direction of the commander of the Colombian Air Force.

The resumption of a program in Peru is still pending the development of safety

enhancements.

FY2006 Funding Levels

The Administration requested a total of $734.5 million for FY2006 for the

Andean Counterdrug Initiative, an increase from the FY2005 estimate of $725.2

million. Included as part of the request was $21 million for the Air Bridge Denial

Program, that would continue contractor logistical support and training for operations

in Colombia. The request also included a new component, $40 million for a Critical

Flight Safety Program that was described as the first installment of a multi-year

program to upgrade and refurbish of State Department aircraft used for eradication

and interdiction missions.

In the FY2006 Foreign Operations Appropriations Act (H.R. 3057, P.L. 109102), Congress approved the Administration’s request of $734.5 million for ACI but

changed how those funds are allocated. Congress provided $14 million for the Air

Bridge Denial program instead of the requested $21 million. For the new Critical

Flight Safety program, Congress provided $30 million instead of the requested $40

million. Congress also recommended different funding levels for Colombia and

Peru, as noted below.

Table 1. Andean Counterdrug Initiative

FY2006 Foreign Operations Conference Report

(P.L. 109-102/H.Rept. 109-265)

(in millions $)

Country

Interdiction

Alt. Dev.

Total

Colombia

310.85

158.63*

469.48

Peru

59.00

49.00

108.0

Bolivia

43.00

37.00

80.0

Brazil

6.00

—

6.0

Ecuador

8.46

11.54

20.0

Panama

4.50

—

4.50

Venezuela

2.25

—

2.25

Air Bridge Denial

14.0

Critical Flight Safety

30.0

Total

734.23

* The conference report directed $131.2 million for alternative development and $27.4 million for

Rule of Law programs.

CRS-4

Related Funding Programs

Additional funding for the Andean region is provided through the Foreign

Military Financing (FMF) program and the International Military Education and

Training (IMET) program, both managed by the State Department. The Defense

Department has a counternarcotics account for worldwide programs involving

interdiction, training, equipment, and intelligence sharing. In the Western

Hemisphere, these programs are managed by the U.S. Army Southern Command.

Foreign Military Financing (FMF)

Foreign Military Financing (FMF) provides funding grants to foreign nations to

purchase U.S. defense equipment, services, and training. The program’s objectives

are to assist key allies to improve their defense capabilities, to strengthen military

relationships between the United States and FMF recipients, and to promote the

professionalism of military forces in friendly countries. FMF is provided to

Colombia and the Andean region to support the efforts of those nations to establish

and strengthen national authority in remote areas that have been used by leftist

guerrilla organizations, rightist paramilitaries, and narcotics traffickers. A portion

of FMF funding in Fiscal Years 2002 and 2003 went for infrastructure protection of

oil pipelines in Colombia. The FY2005 estimate for the Andean region was $103

million, with $99 million for Colombia.

The FY2006 request was for $94 million for the region, with Colombia

proposed to receive $90 million, mainly to provide operational support and

specialized equipment to the Colombian military, with a focus on the Colombian

Army’s specialized and mobile units, and units assigned to protect the Caño Limón

oil pipeline. Bolivia was proposed to receive $1.8 million, Ecuador $750,000,

Panama $1.1 million, and Peru $300,00 to strengthen their capabilities to interdict

drug production and trafficking. In the FY2006 Foreign Operations Appropriations

Act (H.R. 3057, P.L. 109-102), Congress earmarked funds for some countries, but

none in Latin America. The Administration has $242 million to fund remaining

unearmarked countries, for which they requested $318 million. It is likely that

amounts requested for some Andean recipients could be trimmed to accommodate

the decrease in available funds.

International Military Education and Training (IMET)

The IMET program provides training on a grant basis to students from allied and

friendly nations. Its objectives are to improve defense capabilities, develop

professional and personal relationships between U.S. and foreign militaries, and

influence these forces in support of democratic governance. Training focuses on the

manner in which military organizations function under civilian control, civil-military

relations, military justice systems, military doctrine, strategic planning, and

operational procedures. IMET funding for the Andean region was estimated at $3.7

million in FY2005 out of a total of $14 million for all of Latin America. The request

for FY2006 for the Andean countries was $3.5 million out of a hemisphere-wide total

of $13.7 million. The request for Colombia was $1.7 million and would focus on

civil-military issues for junior and mid-grade military officers. For FY2006,

CRS-5

Congress provided the Administration’s worldwide request of $86.74 million, so it

is likely that Andean countries will receive the requested amounts.

Defense Department Counternarcotics Account

The Department of Defense has authority for counternarcotics detection and

monitoring under Sections 124, 1004, and 1033 of the National Defense

Authorization Act. DOD requests a lump sum for counternarcotics programs

worldwide and does not request amounts by country. The estimated amount for

Colombia in FY2004 ranges from $122 million to $160 million. The estimate for

FY2005 DOD counternarcotics funding for Latin America is $366.9 million, of

which up to $200 million is planned for Colombia.

DOD requested a total of $896 million globally for counternarcotics programs,

of which it estimated spending $368 million in Latin America in FY2006. Of this

amount, $122 million would be in direct support of Colombia. Activities include

detection and monitoring operations to assist U.S. law enforcement agencies interdict

drug trafficking. In the Andean region, support is provided in the form of training,

equipment, and intelligence sharing activities. The FY2006 Defense Appropriations

Act (H.R. 2863, P.L. 109-148) provided $917.65 million for drug interdiction

programs worldwide.

U.S. Counternarcotics Assistance By Country

Colombia4

Colombia receives the single largest portion of ACI funds. For FY2006, the

Administration requested $463 million, of which $311 million was for interdiction

and eradication efforts, $125 million for alternative development and institution

building programs, and $27 million for rule of law programs. Interdiction funds

would support the Colombian military’s aviation program and drug units with

training, logistics support, operating expenses, equipment, and to upgrade forward

operating locations. Assistance would also be used to support Colombian National

Police aviation, eradication and interdiction programs with equipment, logistical

support, training, new base construction, communications and information links.

Alternative development programs would support the introduction of new licit crops,

the development of agribusiness and forestry activities, and the development of local

and international markets for new products. Rule of law assistance would help

promote democracy through judicial reform, support for vulnerable groups, and

training and technical assistance for advisors in rule of law areas. ACI funds would

also be used to assist the Bureau of Alcohol, Tobacco and Firearms provide training

and support to bomb squads in an effort to stem terrorist bombings in Colombia.

4

For more information on Colombia, see CRS Report RL32250, Colombia: Issues for

Congress, by (name redacted), and CRS Report RL32774, Plan Colombia: A Progress

Report, by (name redacted).

CRS-6

In the FY2006 Foreign Operations Appropriations Act, Congress provided a

total of $469.5 million for Colombia, divided among $310.9 million for interdiction,

$131.2 million for alternative development, and $27.4 million for rule of law

programs. The amount for alternative development represents a $6.5 million increase

from FY2005 levels. Colombia also receives small amounts of Non-proliferation,

Anti-terrorism, Demining and Related Programs (NADR).

Colombia’s spacious and rugged territory, whose western half is transversed by

three parallel mountain ranges, provides ample isolated terrain for drug cultivation

and processing, and contributes to the government’s difficulty in exerting control

throughout the nation. The country is known for a long tradition of democracy, but

also for continuing violence, including a guerrilla insurgency dating back to the

1960s, and persistent drug trafficking activity. Recent administrations have had to

deal with a complicated mix of leftist guerrillas, rightist paramilitaries (or “selfdefense” forces), and independent drug trafficking cartels. The two main leftist

guerrilla groups are the Revolutionary Armed Forces of Colombia (FARC) and the

National Liberation Army (ELN). The rightist paramilitaries are coordinated by the

United Self-Defense Forces of Colombia (AUC). All three groups participate in drug

production and trafficking, regularly kidnap individuals for ransom, and have been

accused of gross human rights abuses. The three have been designated foreign

terrorist organizations by the United States. The AUC and Colombian military have

been accused of collaborating in fighting the FARC and ELN.

Table 2. U.S. Counternarcotics Assistance to Colombia,

FY2000-FY2006

(in millions $)

ACI

FMF

IMET

NADR

DOD

Total

208.0

—

0.9

—

229.2

1,124.5

48.0

—

—

1.0

—

190.2

239.2

FY2002

243.5

136.4

—

1.2

25.0

119.1

525.2

FY2003

412.0

168.2

17.1

1.2

3.3

165.0

766.8

FY2004

324.6

159.3

98.5

1.7

.2

122.0

706.3

FY2005

310.7

152.1

99.2

1.7

4.1

200.0

767.8

FY2006

310.9

158.6

90.0

1.7

4.1

122.0

687.3

Total

2,336.1

982.6

304.8

9.4

36.7

1147.5

4,817.1

Interdict.

Alt. Dev.

FY2000

686.4

FY2001

Sources: Figures are drawn from the annual State Department and USAID Budget Justifications from

the Department of State and the USAID Budget Justifications for fiscal years 2002 through 2006, the

FY2006 Foreign Operations Appropriations Act (P.L. 109-102) and Conference Report (H.Rept. 109265), and congressional testimony.

CRS-7

Peru

Peru is the second largest recipient of ACI funding with $97 million requested

for FY2006. This represented a reduction from $115.4 million in FY2005. ACI

funding would be split between $54 million for interdiction and $43 million for

alternative development and institution building. Interdiction funds would focus on

improving Peruvian airlift operations, using U.S.-owned assets, determining the

extent of coca cultivation in the country, demand reduction and money laundering

programs. Alternative development funds would rehabilitate roads, bridges, schools

and health care access, land reform, and agri-business.

For FY2006, Congress directed that Peru receive $108 million, of which $59

million would be for interdiction and $49 million for alternative development.

Unlike previous years, Congress did not include a provision requiring notification

prior to restarting the Air Bridge Denial program in Peru.

Peru shares its northern border with Colombia, and is the second largest cocaine

producer in the world. It exports high purity cocaine and cocaine base to markets in

South America, Mexico, Europe, and the United States. Nevertheless, Peru has been

viewed as a success story in counternarcotics efforts because joint U.S.-Peru air and

riverine interdiction operations, aggressive eradication efforts, and alternative

development programs have significantly reduced coca production. Facing mounting

protests, the Peruvian government temporarily suspended the eradication program in

the Upper Huallaga Valley in early July 2002, but resumed the program in September

2002 once concerns were addressed, in part to be eligible for Andean Trade

Preference Act benefits. The State Department reports that coca cultivation had

decreased in Peru by 15% in 2003. For 2004, the ONDCP reported a slight decrease,

while the United Nations reported a 14% increase.5

Counternarcotics policy in Peru has faced growing resistance from indigenous

communities that view coca leaf cultivation as a cultural right and source of income.

A 2004 Peruvian study found that approximately two million people use coca leaf

either habitually or occasionally, and another two million use it for tea, or for

traditional or ceremonial purposes. Some regions have attempted to de-criminalize

coca growing, a move which the President Toledo government has resisted. With

Toledo’s low popularity and growing discontent in coca growing regions, some

observers believe the government is unwilling to take on the increasingly assertive

coca growers.6

5

For more information on the reliability of survey methods, see CRS Report RL33163, Drug

Crop Eradication and Alternative Development in the Andes, by (name redacted) and

Carolina Navarrete-Frías.

6

“Police Clashes and Vacillation Threaten the ‘War on Drugs’ in the Andes, Latinnews

Security and Strategic Review, July 2005.

CRS-8

Table 3. U.S. Counternarcotics Assistance to Peru,

FY2000-FY2006

(in millions $)

ACI

FMF

IMET

Total

Interdict.

Alt. Dev.

FY2000

55.0

25.0

—

0.5

80.5

FY2001

21.0

27.0

—

0.5

48.5

FY2002

75.0

67.5

—

0.5

143.0

FY2003

59.5

68.6

1.0

0.6

129.7

FY2004

66.3

49.7

—

—

116.0

FY2005

61.5

53.9

1.0

0.3

116.7

FY2006

59.0

49.0

0.3

0.1

108.4

Total

392.3

334.7

2.3

2.5

731.8

Sources: Figures are drawn from the annual State Department and USAID Budget Justifications for

fiscal years 2002 through 2006, the FY2006 Foreign Operations Appropriations Act (P.L. 109-102),

and Conference Report (H.Rept. 109-265).

Bolivia7

For FY2006, the Administration proposed spending $80 million in Bolivia, a

reduction from $90 million in FY2005. The requested amount would be divided

between $43 million for interdiction and $37 million for alternative development and

institution building. Interdiction funds would continue eradication programs in the

Chapare and Yungas regions, provide training for police, maintain support for

Bolivian security forces riverine and ground operations, and aviation programs.

Alternative development would continue support for the production of licit crops,

and establish integrated justice centers in conflictive regions. For FY2006, Congress

approved the Administration’s request.

Landlocked Bolivia shares no border with Colombia, but Bolivia’s significant

gains in reducing illegal coca production could be threatened by any successes in

controlling production in Colombia. At one time the world’s foremost producer of

coca leaf, Bolivia made great strides in reducing coca cultivation under the BanzerQuiroga administration (1997-2002).8 However, forcible eradication of coca has

become a source of social discontent, exacerbating tensions over class and ethnicity

7

For more information, see CRS Report RL32580 Bolivia: Political and Economic

Developments and Implications for U.S. Policy, by (name redacted) and Clare Ribando.

8

President Jorge Quiroga assumed the presidency on August 7, 2001, when President Hugo

Banzer, whom he had served as vice president, resigned because of illness. Quiroga could

not, by law, subsequently run for election.

CRS-9

that may foment political instability in Latin America’s poorest country. Moreover,

according to the State Department, coca cultivation increased 23% in 2002 and 17%

in 2003.9 Nevertheless, Bolivia’s coca cultivation is still about half of its 1995

levels.

For some 20 years, U.S. relations with Bolivia have centered largely on

controlling the production of coca leaf and coca paste, which was usually shipped to

Colombia to be processed into cocaine. In support of Bolivia’s counternarcotics

efforts, the United States has provided significant interdiction and alternative

development assistance, and it has forgiven all of Bolivia’s debt for development

assistance projects, and most of the debt for food assistance. There has been

growing public opposition to Bolivia’s counternarcotics policy that has served to fuel

to popular discontent that has contributed to political instability. Some critics believe

that U.S. policy supporting forced drug crop eradication is contributing to popular

support for left-of-center opposition political figures. Coca growers (cocaleros) have

organized themselves in legally recognized labor unions, and have formed a political

party, Movement Toward Socialism (MAS). The MAS presidential candidate, Evo

Morales, who came in a close second in 2002 presidential elections, won the

presidency in December 2005. Considering Morales’ comments critical of U.S.

counternarcotics policy in the region, the future of U.S.-Bolivian relations is unclear.

Table 4. U.S. Counternarcotics Assistance to Bolivia,

FY2000-FY2006

(in millions $)

ACI

FMF

IMET

Total

Interdict.

Alt. Dev.

FY2000

57.0

101.0

—

0.5

158.5

FY2001

32.0

20.0

—

0.7

52.7

FY2002

48.0

39.6

2.0

0.7

90.3

FY2003

49.0

41.7

2.0

0.8

93.5

FY2004

49.2

41.8

4.0

0.6

95.6

FY2005

48.6

41.7

2.0

0.8

93.1

FY2006

43.0

37.0

1.8

0.8

82.6

Total

326.8

322.8

11.8

4.9

666.3

Sources: Figures are drawn from the annual State Department and USAID Budget Justifications for

fiscal years 2002 through 2006, the FY2006 Foreign Operations Appropriations Act (P.L. 109-102),

and Conference Report (H.Rept. 109-265).

9

U.S. Department of State, International Narcotics Control Strategy Report, 2002 and 2003.

The ONDCP reported that coca cultivation increased slightly during 2004. Office of

National Drug Control Policy, “2004 Coca and Opium Poppy Estimates for Colombia and

the Andes,” March 25, 2005.

CRS-10

Ecuador10

Ecuador is the next largest recipient of ACI funds, with $20 million

appropriated for FY2006. This represented a reduction from nearly $26 million in

FY2005. Funds would be divided between $8.5 million for interdiction and $11.5

million for alternative development and institution building. The objective of

assistance to Ecuador is to stop or prevent any spillover of drug trafficking and

guerrilla activities from Colombia, and to stop the transit of drugs destined for the

United States.

On Colombia’s southern border, Ecuador is the most exposed of Colombia’s

neighbors, being situated adjacent to areas in southern Colombia that are guerrilla

strongholds and heavy drug producing areas. As a major transit country for cocaine

and heroin from Colombia and Peru, Ecuador cooperates extensively with the United

States in counternarcotics efforts. Nonetheless, the State Department reports that

weak public institutions, the uneven implementation of new criminal proceedings,

and widespread corruption limit the country’s ability to counter drug trafficking. In

2004, the Ecuadoran government published a new national drug strategy and

implementation plan, with a focus on strengthening institutions and drug trafficking

laws, and providing more resources for its drug agency, the National Drug Council.

In November 1999, the United States signed a 10-year agreement with Ecuador for

a forward operating location (FOL) in Manta, on the Pacific Coast, for U.S. aerial

counterdrug detection and monitoring operations.

According to press reports, Colombian guerrillas pass into Ecuadoran territory

for rest, recuperation, and medical treatment, and FARC camps have been detected

in Ecuador’s northern province of Sucumbios, where it was reported that barracks,

ammunition, explosives and radio equipment were found.11 Ecuadoran officials say

they have uncovered and destroyed several small cocaine processing labs in the area.

The Ecuadoran border region is experiencing a constant flow of Colombian refugees

into the poor areas, and fighters with Colombian paramilitary organizations have

been arrested for running extortion rings in Ecuadorian border regions. Ecuadoran

officials have complained that the armed conflict and drug trafficking in Colombia

is having an adverse affect on Ecuadoran peasants in border areas, and that the aerial

fumigation in Colombia is harming the Ecuadoran environment and negatively

affecting Ecuadorans’ health.12

10

For more information, see CRS Report RS21687 Ecuador: Political and Economic

Situation and U.S. Relations, by Clare Ribando.

11

“Anti-Colombian Sentiment on the Rise in Ecuador,” BBC Monitoring Americas, October

10, 2005; “Special Report - Latin America and U.S. War on Terror: Spillover From

Colombia,” Latin American Newsletters, May 2003; “Colombian FARC Guerrilla Base

Discovered in Ecuador,” EFE News Service, November 21, 2003.

12

“Ecuador: Fumigation Compensation Demanded,” Latinnews Daily, July 19, 2005;

“Ecuador Concerned by Colombia’s Herbicide Use,” Latinnews Daily, September 19, 2005;

and “Ecuador’s Gutierrez Says Colombian Conflict Moving Beyond Its Borders,” BBC

Monitoring Americas Report, June 30, 2003.

CRS-11

Table 5. U.S. Counternarcotics Assistance to Ecuador,

FY2000-FY2006

(in millions $)

ACI

FMF

IMET

Total

Interdict.

Alt. Dev.

FY2000

13.2

8.0

—

0.5

21.7

FY2001

2.2

—

—

0.6

2.8

FY2002

15.0

10.0

—

0.6

25.6

FY2003

15.0

15.9

1.0

0.6

32.5

FY2004

20.0

15.0

—

—

35.0

FY2005

10.9

14.9

1.0

0.3

27.1

FY2006

8.5

11.5

0.8

0.1

20.9

Total

84.8

75.3

2.8

2.7

165.6

Sources: Figures are drawn from the annual State Department and USAID Budget Justifications for

fiscal years 2002 through 2006, the FY2006 Foreign Operations Appropriations Act (P.L. 109-102),

and Conference Report (H.Rept. 109-265).

Brazil

FY2006 ACI funds appropriated for Brazil total $6 million mainly for

interdiction and law enforcement activities. The goal is to prevent any spillover

effect from Colombia. Congress approved the Administration’s request. Brazil’s

isolated Amazon region, populated largely by indigenous groups, forms Colombia’s

southeastern border. Brazil is not a significant drug-producing country, but it is a

conduit for the transit of coca paste and cocaine from Colombia to Europe and the

United States. It is also becoming a final destination, with marked increases in crack

cocaine and heroin abuse.

Brazil passed an omnibus federal counternarcotics law in 2002, and adopted a

new national strategy to deal with money laundering in 2004. Also in 2004, Brazil

began implementing a 1998 shoot-down law, in which the Air Force has the authority

to use lethal force against civilian aircraft reasonably suspected to be engaged in drug

trafficking. Brazilians have long been concerned about the sparsely populated

territory in the huge Amazon region, and they have been fearful historically of

foreign intervention in this territory. In an effort to exercise control over this vast

territory, Brazil has constructed a $1.4 billion sensor and radar project called the

Amazon Vigilance System (SIVAM from its acronym in Portuguese), offering to

share data from this system with neighbors and the United States. It has established

a military base at Tabatinga, with 25,000 soldiers and policemen, with air force and

navy support. In 2000, it launched COBRA, an inter-agency border security program

to deal with spillover effects from Colombia. In 2003, Brazil expanded COBRA-like

CRS-12

to its northern borders with Peru, Venezuela, and Bolivia. The programs focus on

controlling land and air entry into Brazil and is headquartered at Tabatinga.

Table 6. U.S. Counternarcotics Assistance to Brazil,

FY2000-FY2006

(in millions $)

ACI

IMET

Interdict.

Total

Alt. Dev.

FY2000

5.0

—

0.2

5.2

FY2001

2.0

—

0.3

2.3

FY2002

6.0

—

0.4

6.4

FY2003

6.0

—

0.5

6.5

FY2004

10.2

—

—

10.2

FY2005

8.9

—

—

8.9

FY2006

6.0

—

0.5

6.5

Total

44.1

—

1.9

46.0

Sources: Figures are drawn from the annual State Department and USAID Budget Justifications for

fiscal years 2002 through 2006, the FY2006 Foreign Operations Appropriations Act (P.L. 109-102),

and Conference Report (H.Rept. 109-265). Brazil did not received FMF during this time period.

Venezuela13

The Administration proposed spending $3 million in FY2006 counternarcotics

assistance to Venezuela largely for interdiction and law enforcement purposes.

Congress appropriated $2.3 million. Because of Venezuela’s extensive 1,370-mile

border with Colombia, it is a major transit route for cocaine and heroin destined for

the United States.

According to the Department of State’s March 2005 International Narcotics

Control Strategy Report (INCSR), cocaine seizures by the Venezuelan government

amounted to 17.8 metric tons (mt) in 2002, 19.5 mt in 2003, and 19.1 mt during the

first six months of 2004. Despite some friction in U.S.-Venezuelan relations that

increased in 2005, cooperation between the two countries at the law enforcement

agency level led to significant cocaine seizures in 2004. The INCSR report asserted

that Venezuela carried out some 400 cocaine and heroin seizures in the first half of

2004 and that several important cocaine and heroin trafficking organizations were

effectively attacked in 2004, including several important extraditions. Nevertheless,

13

For more information on Venezuela, see CRS Report, RL32488 Venezuela: Political

Conditions and U.S. Policy, by Mark Sullivan.

CRS-13

the Department of State maintained in the report that Venezuela needs to make

substantial efforts in five areas: passing an Organized Crime Law; making effective

efforts to combat corruption; cracking down on document fraud; enforcing courtordered wiretaps; and conducting opium poppy and coca eradication operations at

least annually.

On September 15, 2005, President Bush designated Venezuela, pursuant to

international drug control certification procedures set forth in the Foreign Relations

Authorization Act, FY2003 (P.L. 107-228), as one of two countries that has failed

demonstrably to adhere to its obligations under international narcotics agreements.

At the same time, the President waived economic sanctions that would have curtailed

U.S. assistance for democracy programs in Venezuela, and ACI funding will not be

affected. The justification noted that despite Venezuela’s increase in drug seizures

over the past four years, Venezuela has not addressed the increasing use of

Venezuelan territory to transport drugs to the United States. According to the State

Department, the overall picture is one of decreasing Venezuelan focus on

counternarcotics initiatives and reduced cooperation with the United States.

Table 7. U.S. Counternarcotics Assistance to Venezuela,

FY2000-FY2006

(in millions $)

ACI

IMET

Interdict.

Total

Alt. Dev.

FY2000

4.2

—

0.4

4.6

FY2001

1.2

—

0.4

1.6

FY2002

5.0

—

0.5

5.5

FY2003

2.1

—

0.7

2.8

FY2004

5.0

—

—

5.0

FY2005

3.0

—

—

3.0

FY2006

2.3

—

0.5

2.8

Total

22.8

—

2.5

25.3

Sources: Figures are drawn from the annual State Department and USAID Budget Justifications for

fiscal years 2002 through 2006, the FY2006 Foreign Operations Appropriations Act (P.L. 109-102),

and Conference Report (H.Rept. 109-265). Venezuela did not receive FMF during this period.

CRS-14

Panama14

For FY2006, the Administration proposed, and Congress approved, $4.5 million

for counternarcotics programs to assist Panama. Because of its geographic location

bordering Colombia at the crossroads of North and South America, its largely

unguarded coastline, and its well-developed transportation, banking, trade and

financial sectors, Panama is a major transit route for illicit drugs and an attractive site

for money laundering. The country is on the President’s list of major drug transit

countries and has been on the State Department’s list of “countries of primary

concern” for money laundering for the past three years. Drug traffickers use fishing

vessels, cargo ships, small aircraft, and go-fast boats to move illicit drugs —

primarily cocaine, but also heroin and Ecstasy — through Panama.

According to the Department of State, security in Panama’s Darien region

bordering Colombia has improved in recent years, although the smuggling of

weapons and drugs across the border continues. Drugs and arms trade associated

with Colombian terrorist groups also reportedly occurs in other parts of Panamanian

territory and in the country’s coastal waters, according to the U.S. DEA.15 According

to the Department of State’s International Narcotics Control Strategy Report,

Panama’s cooperation with the United States on counternarcotics efforts is excellent,

although the country’s difficult fiscal situation has impeded Panama’s law

enforcement ability. For this reason, the Department of State maintains that U.S.

assistance is critical in ensuring effective Panamanian law enforcement.

Table 8. U.S. Counternarcotics Assistance to Panama,

FY2000-FY2006

(in millions $)

ACI

FMF

IMET

Total

Interdict.

Alt. Dev.

FY2000

5.0

—

—

0.1

5.1

FY2001

1.0

—

—

0.2

1.2

FY2002

5.0

—

—

0.2

5.2

FY2003

4.5

—

1.0

0.2

5.7

FY2004

6.5

—

2.0

0.6

9.1

FY2005

6.0

—

1.0

0.6

7.6

FY2006

4.5

—

1.1

0.6

6.2

Total

32.5

—

5.1

2.5

40.1

Sources: Figures are drawn from the annual State Department and USAID Budget Justifications for

fiscal years 2002 through 2006, the FY2006 Foreign Operations Appropriations Act (P.L. 109-102),

and Conference Report (H.Rept. 109-265).

14

For more information on Panama, see CRS Report RL30981 Panama: Political and

Economic Conditions and U.S. Relations, by Mark Sullivan.

15

U.S. Drug Enforcement Administration, “Panama: Country Brief,” May 2005, p. 12.

CRS-15

Congressional Conditions on ACI Assistance

Since first approving expanded assistance to Colombia for counternarcotics

programs in 2000, Congress has included a number of conditions on U.S. assistance

in both authorization and appropriations legislation. The most recently enacted

funding legislation is the FY2006 Foreign Operations Appropriations Act (H.R.

3057, P.L. 109-102), which included a number of longstanding provisions relating

to the Andean Counterdrug Initiative. The FY2005 National Defense Authorization

Act (H.R. 4200, P.L.108-375) also included provisions relating to Colombia. The

FY2006 National Defense Authorization Act (H.R. 1815, P.L. 109-163) authorized

funding for Department of Defense drug interdiction activities.

Expanded Authority

Both the FY2006 Foreign Operations Appropriations Act and the FY2005 the

National Defense Authorization, maintains language, first approved by Congress in

2002, authorizing support for a unified campaign against narcotics trafficking and

activities by organizations designated as terrorist organizations. Appropriations report

language notes that counternarcotics, alternative development, and judicial reform

should remain the principal focus of U.S. policy in Colombia. This authority shall

cease if the Secretary of State has credible evidence that the Colombian Armed

Forces are not vigorously attempting to restore government authority and respect for

human rights in areas under the effective control of paramilitary and guerrilla

organizations.

Personnel Caps

The FY2005 National Defense Authorization Act changed existing law with

regard to the cap on the number of U.S. military and civilian contractors that can be

deployed in Colombia in support of Plan Colombia. The cap on military personnel

was raised from 400 to 800, and for civilian contractors, from 400 to 600. As of

September 30, 2005, there were 359 U.S. military, and 365 U.S. contractors in

Colombia in support of Plan Colombia. During the previous three months, military

personnel levels varied between 234 and 460, while civilian personnel levels varied

from 345 to 392.16 These numbers change as programs begin, expand, or finish. The

personnel caps also do not apply to foreign national contract employees, or to

personnel stationed at the U.S. embassy.

Helicopters

The FY2006 Foreign Operations Appropriations Act maintains current law

requiring that if any helicopter procured with ACI funds is used to aid or abet the

operations of any illegal self-defense group or illegal security cooperative, the

helicopter shall be immediately returned to the United States.

16

Information provided by the Department of State.

CRS-16

Reports

The FY2006 Foreign Operations Appropriations Act requires that the Secretary

of State, in consultation with the Administrator of USAID, provide to the

Committees on Appropriations a report within 45 days of enactment and prior to the

initial obligation of funds on the proposed uses of all ACI funds on a country-bycountry basis for each proposed program, project, or activity. The FY2005 National

Defense Authorization Act requires a report from the Secretary of State within 60

days of enactment (in consultation with the Secretary of Defense and the Director of

Central Intelligence) on any relationships between foreign governments with

organizations in Colombia that have been designated foreign terrorist organizations

by the United States. The report is to describe what direct or indirect assistance these

groups are receiving and the U.S. policies designed to address such relationships.

Colombian Human Rights

The FY2006 Foreign Operations Appropriations Act allows the obligation of

75% of assistance to the Colombian Armed Forces without a determination and

certification from the Secretary of State regarding respect for human rights and

severing ties with paramilitary groups. The remaining 25% can be released in two

installments of 12.5% each. The first installment can be made provided that the

Secretary of State certifies that:

!

the Commander General of the Colombian Armed Forces is

suspending members who have been credibly alleged to have

committed gross violations of human rights or to have aided or

abetted paramilitary organizations;

!

the Colombian government is vigorously investigating and

prosecuting members of the military who have been credibly alleged

to have committed gross violations of human rights or to have aided

or abetted paramilitary organizations, and promptly punishing those

found guilty;

!

the Colombian Armed Forces have made substantial progress in

cooperating with civilian prosecutors and judicial authorities in such

cases;

!

the Colombian Armed Forces have made substantial progress in

severing links to paramilitary organizations;

!

the Colombian government is dismantling paramilitary leadership

and financial networks by arresting commanders and financial

backers; and

!

the Colombian government is taking effective steps to ensure that

land and property rights of indigenous communities are not being

violated by the Colombian Armed Forces.

CRS-17

The last installment can be made after July 31, 2006, if the Secretary of State

certifies that the Colombian Armed Forces are continuing to meet the above

conditions and are conducting vigorous operations to restore government authority

and respect for human rights in areas under the effective control of paramilitary and

guerrilla organizations. The law also requires that not later than 60 days after

enactment, and every 90 days thereafter, the Secretary of State shall consult with

internationally recognized human rights organizations regarding progress in meeting

these conditions.

The law denies visas to anyone who the Secretary of State determines willfully

provided any support to leftist guerrilla organizations or rightist paramilitaries, or has

participated in the commission of gross violations of human rights in Colombia. The

provision may be waived by the Secretary of State determines and certifies, on a

case-by-case basis, that the issuance of a visa is necessary to support the peace

process in Colombia, or for urgent humanitarian purposes.

In addition to these provisions that are specific to Colombia, the law includes

a provision from previous legislation, often called the Leahy amendment, that denies

funds to any unit of a security force for which the Secretary of State has credible

evidence of gross human rights violations. The Secretary may continue funding if

he determines and reports to Congress that the foreign government is taking effective

measures to bring the responsible members of these security forces to justice.

Funding Earmarks

The FY2006 Foreign Operations Appropriations Act designated that not less

than $228.8 million of ACI funds be allocated to USAID for alternative development

and institution building. Of this amount, USAID is directed to use $131.2 million

for programs in Colombia. Bill language directs that ACI funds apportioned to

USAID shall be allocated by the Administrator of the U.S. Agency for International

Development in consultation with the Assistant Secretary of State for International

Narcotics and Law Enforcement Affairs.

The act also required that not less than $6 million be made available for judicial

reform programs in Colombia and not less than $8 million for programs to protect

human rights. It also earmarks not less than $2 million for programs to protect

biodiversity and indigenous reserves in Colombia. Conference report language

(H.Rept. 109-265) directs that $500,000 of funds available for the Colombian Armed

Forces be made available for incidental costs associated with treating in the United

States, soldiers injured by land mines. Report language also recommends additional

assistance through the Leahy War Victims Fund be made available to help

Colombian civilians who are disabled by land mines.

CRS-18

Aerial Fumigation

The FY2006 Foreign Operations Appropriations Act requires that not more than

20% of funds used for the procurement of chemicals for aerial coca and poppy

fumigation be made available unless the Secretary of State certifies that 1) the

herbicide mixture is in accordance with EPA label requirements for comparable use

in the United States and any additional controls recommended by the EPA; and 2) the

herbicide mixture does not pose unreasonable risks or adverse effects to humans or

the environment, including endemic species. Further, the Secretary of State must

certify that complaints of harm to health or licit crops caused by fumigation are

evaluated and fair compensation is being paid for meritorious claims. These funds

may not be made available unless programs are being implemented by USAID, the

Colombian government, or other organizations, and in consultation with local

communities, to provide alternative sources of income in areas where security

permits for small-acreage growers whose illicit crops are targeted for fumigation.

Prohibition on Participation in Combat Operations

The FY2006 Foreign Operations Appropriations Act and the FY2005 National

Defense Authorization continues the prohibition on U.S. military personnel or U.S.

civilian contractors participating in any combat operations in Colombia. This

provision has been included in authorization and appropriation legislation since the

original Plan Colombia law approved by Congress in 2000.

Bolivian Human Rights

The FY2006 Foreign Operations Appropriations Act requires the Secretary of

State to certify that the Bolivian military is respecting human rights, and that civilian

judicial authorities are investigating and prosecuting, with the military’s cooperation,

military personnel who have been implicated in gross violations of human rights.

Such a certification must be issued before any ACI funds may be made available to

the Bolivian military.

Demobilization of Illegally Armed Groups in Colombia

The FY2006 Foreign Operations Appropriations Act makes $20 million

available in FY2006 to assist in the demobilization and disarmament of former

members of foreign terrorist organizations (FTOs), if the Secretary of State certifies

that:

!

assistance will be provided only for individuals who have verifiably

renounced and terminated any affiliation or involvement with FTOs,

and are meeting all the requirements of the Colombia

Demobilization program;

!

the Colombian government is fully cooperating with the United

States in extraditing FTO leaders and members who have been

indicted in the United States for murder, kidnaping, narcotics

trafficking, and other violations of U.S. law;

CRS-19

!

the Colombian government is implementing a concrete and workable

framework for dismantling the organizational structures of FTOs;

and

!

funds will not be used to make cash payments to individuals, and

funds will only be available for any of the following activities:

verification, reintegration (including training and education), vetting,

recovery of assets for reparations for victims, and investigations and

prosecutions.

Maritime Refueling Vessel

The FY2006 Foreign Operations Appropriations Act report language urges the

Administration to include in its FY2007 budget a funding request for a maritime

refueling support vessel that is capable of refueling U.S. and allied vessels engaged

in drug interdiction in the eastern Pacific transit zone.

Major Legislative Activity in the 109th Congress

First Session

FY2006 Foreign Operations Appropriations Act

On June 28, 2005, the House passed H.R. 3057 (H.Rept. 109-152) fully funding

the ACI at $734.5 million. The Senate passed H.R. 3057 on July 20, 2005 (S.Rept.

109-96) fully funding the ACI at $734.5 million. Both House and Senate versions

included conditions on assistance, similar to current law, regarding human rights,

expanded authority for a unified campaign, a prohibition on combat, and the use of

U.S.-provided helicopters.

House Provisions. Some House provisions differed from the Senate. The

House made ACI funds available until September 30, 2008, rather than 2007 as

provided by the Senate. The House version did not include several earmarks that

appeared in the Senate bill, including $2 million to protect biodiversity in Colombia’s

national parks and indigenous reserves, and $8 million for organizations and

programs to protect human rights in Colombia.

The House did not maintain language from previous years conditioning the

funding for aerial spraying in Colombia on a certification from the Secretary of State

on the health and environmental effects of the herbicide used there. The House also

did not maintain FY2005 language requiring that the Administrator of USAID, in

consultation with the Assistant Secretary of State for International Narcotics and Law

Enforcement Affairs, have responsibility for the use of ACI funds that are directly

apportioned to USAID.

CRS-20

House report language stated the expectation that the Appropriations Committee

would be consulted on a follow-up program to Plan Colombia, that will expire at the

end of 2005. The Secretary of State, in consultation with the Secretary of Defense

and the Administrator of USAID, is directed to report to the Committee no later than

60 days after enactment on “the future, multi-year strategy of the United States

assistance program to Colombia.” The report is to include all aspects of current and

future assistance, and an explanation of how the Colombian government will assume

responsibility for maintaining more of Plan Colombia’s assets. Report language also

expressed the Committee’s concern with the Colombian government’s ability to

assume the operational and maintenance functions of Plan Colombia, and required

a report from the Secretary of State on what actions both Defense and State are taking

to transfer responsibilities to Colombian nationals that are currently being carried out

by U.S. contractors.

Report language also noted concern with the increased cost of oil and fuel

contributing to higher U.S. operating costs in Colombia, and expressed the

expectation that Colombia oil revenues be used to offset some of the increased costs.

It directed the Secretary of State to report on the levels of revenue the Colombian

government is devoting to offsetting increased fuel prices borne by the United States

in its support for Plan Colombia.

The House directed that $5 million in ACI funds be transferred to the State

Department’s Bureau for Population, Refugees, and Migration for programs

benefitting internally displaced persons in Colombia. The Report also expressed

support for alternative development programs in Colombia, and that alternative

development, with the presence of an official state presence in the form of law

enforcement and security, are fundamental to long term peace and security. The

Committee directed USAID to report back to the Committee with detailed steps the

Colombian government is taking to develop a comprehensive rural development

strategy.

With regard to Peru, the House report expressed alarm at the Administration’s

proposed cut to ACI programs in that country. The Committee directed that Peru

receive no less than $114 million, of which $61 million would be for eradication and

interdiction, and $53 million for alternative development and institution building.

The additional funding is to come from reductions in the Air Bridge Denial program

and the newly proposed Critical Flight Safety program. The Senate approved the

Administration’s request for Peru. The House report expressed support for a pilot

project using voluntary eradication combined with community development projects

to promote cooperation with counternarcotics objectives. The Committee urged

USAID to work with The Field Museum of Chicago on the Cordillera Azul National

Park on a project for alternative community development and conservation education.

Senate Provisions. For its part, the Senate included language not found in

the House version. The Senate limited the amount of funds available to the

Colombian Armed Forces and National Police at $287.45 million, and for alternative

development and institution building in Colombia to $149.76 million. The bill also

included language conditioning the release of assistance to Bolivia on the Secretary

of State certifying that the Bolivian military is respecting human rights and

cooperating with human rights investigations and prosecutions.

CRS-21

With regard to the demobilization of illegally armed groups in Colombia, the

House did not provide funding for the demobilization process and required that the

Committee be consulted prior to any funds being obligated for this purpose. The

Senate included bill language making any funds for the demobilization process

subject to prior consultation and notification to the Committees on Appropriations.

Section 6110 of the bill prohibits funds for demobilization unless they are for limited

activities that are determined by the Justice Department to be consistent with U.S.

anti-terrorism laws. Additionally, the Secretary of State must certify that Colombian

law is consistent with obligations under the U.S.-Colombia extradition treaty and that

Colombia is continuing to extradite Colombian citizens in accordance with the treaty.

The certification must also find that Colombian law provides for the effective

investigation, prosecution and punishment of members of foreign terrorist

organizations (FTO) charged with gross violations of humanitarian law and drug

trafficking, and that sentence reductions for those members are contingent on a full

and truthful confession of criminal activity, including knowledge of the FTO’s

structure, financing sources, and illegal assets, and the turnover of those assets.

Additionally, the law must condition sentence reductions for FTO commanders on

a cessation of illegal activities of the troops under his command and the turnover of

all the group’s illegal assets. The law must further provide that demobilized fighters

will lose all sentence reductions if they are subsequently found to have withheld

assets, lied to authorities about their criminal activities, rejoined an FTO, or engaged

in new illegal activities.

Bill language also required that an inter-agency working group composed of

representatives from the DEA, Department of Justice, Department of State,

Department of Defense has consulted with local and national Colombian law

enforcement and military authorities, representatives from the U.N. High

Commissioner’s Office for Human Rights in Colombia, and representatives of

Colombian civil society, and has issued a report to the Committees on Appropriation.

The Senate called for the report to include whether: the FTO is violating any ceasefire and commitments to stop illegal activities, including drug trafficking, extortion,

and violations of international humanitarian law; the FTO’s criminal and financial

structure is being destroyed and is not regrouping to continue illegal activities; the

Colombian government is conducting effective investigations and prosecutions of

FTO commanders, and when appropriate, extraditing them to the United States; the

Colombian government is aggressively trying to locate and confiscate illegal assets

of FTOs; and the Colombian government is enforcing FTO cease fires by barring

individuals who are credibly accused of crimes in breach of any cease fire from

receiving benefits under the demobilization process.

The Senate also included conditions similar to previous years on the aerial

fumigation program, making the release of 20% of the funds contingent on a

certification from the Secretary of State on the health and environmental safety of the

herbicide. Differing from current law, report language directed the Secretary of State,

in consultation with the EPA, and Colombian authorities, to report no later than 180

days after enactment, on the results of an analysis of the proximity of small bodies

of water to coca and poppy fields; and of tests to determine the toxicity of the

herbicide spray mixture to Colombian amphibians; and to assess the potential

impacts of the spray program on threatened species, including those found in

Colombia’s national parks.

CRS-22

The Senate maintained a provision from previous years requiring the Secretary

of State to certify that human rights conditions have been met prior to the obligation

of 25% of assistance for the Colombian military, and added a provision directing the

Secretary of State to consult with the Office of the U.N. High Commissioner for

Human Rights in Colombia and congressional committees prior to making a

certification.

In other report language, the Committee approved $21 million provided for the

Air Bridge Denial program, and recommended that the program be consolidated

under a single aviation operation and maintenance account. Report language noted

that no funding was being provided for the proposed Critical Flight Safety program,

and stated that a lack of oversight of contract costs and execution related to the

acquisition, lease, and operation and maintenance of aircraft has resulted in annual

price and program growth of more than 10% from 2001 to 2006.

Report language recommended $90 million for Colombia in FMF funding. The

Committee also expressed concern that the aerial eradication program is falling short

of predictions and that coca cultivation is shifting to new areas. The Committee

stated its awareness of poverty and discrimination faced by Afro-Colombians, and

recommended assistance, especially for those internally displaced in the Choco

region, through the Afro-Latino Development Alliance. The report recommended

that $5 million in ACI funds be made available for technology related to the

monitoring of web-based communications to combat extortion, kidnaping, narcotics

trafficking, and terrorism in Colombia.

Foreign Operations Conference Report. The House passed the

conference report (H.Rept. 109-265) on November 4, 2005, and the Senate followed

suit on November 10. The President signed it into law on November 14, 2005 (P.L.

109-102). The agreement fully funds the ACI at $734.5, but provides a different mix

on how that money should be spent than did either the House or Senate bills. (See

section on Congressional Conditions on Assistance for provisions provided in the

final bill.)

The conference report makes ACI funds available until September 30, 2008 as

proposed by the House. It adopted alternative language with regard to

demobilization than that provided in the Senate bill, and appropriated $20 million to

assist Colombia carry out the demobilization process. (See page 10 of this report for

conditions on demobilization assistance.) The conference report removed the Senate

provision requiring the Secretary of State to consult with the U.N. High

Commissioner for Human Rights in Colombia before making a certification that

Colombia is meeting human rights conditions. Instead, the conference report states

the expectation that the Secretary will consider the opinion of the High

Commissioner and the Committees on Appropriations prior to making the

certification. It also increased funding for alternative development and rule of law

programs in Colombia from $149.76 million, as provided by the Senate, to $158.6

million.

CRS-23

Foreign Relations Authorization Act, FY2006 and FY2007

The House International Relations Committee reported H.R. 2601, the Foreign

Relations Authorization Act, with a provision making U.S. assistance to Colombia

contingent on a certification from the Secretary of State that Colombia has a

workable framework in place for the demobilization and dismantling of former

combatants, and that Colombia is cooperating with the United States on extradition

requests. The bill also calls for a report from the Secretary of State that details tax

code enforcement in Colombia. In floor action, the House approved a Burton

amendment to authorize the transfer of two tactical, unpressurized marine patrol

aircraft for use by the Colombian Navy for interdiction purposes.

The Senate has had under consideration its version of the foreign relations

authorization bill, S. 600. The bill authorizes funding for ACI and includes a number

of conditions on assistance consistent with current law. The bill would authorize a

unified campaign against narcotics trafficking and terrorist activities; maintains the

existing cap on military and civilian personnel allowed to be stationed in Colombia;

prohibits U.S. military and civilian personnel from participating in combat

operations; and maintains reporting requirements relating to human rights and the

conduct of U.S. operations.

National Defense Authorization Act, FY2006

The FY2006 National Defense Authorization Act (H.R. 1815) was passed by

the House and Senate on December 19, 2005 and signed by the President on January

6, 2006 (P.L. 109-163). It authorized $901.7 million for DOD-wide global drug

interdiction activities. Unlike the FY2005 authorization, it did not include provisions

relating to Colombia or the Andean Counterdrug Initiative.

CRS-24

Appendix B. Map

Figure 1. Andean Counterdrug Initiative Countries

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