| EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503
| STATEMENT OF ADMINISTRATION POLICY (THIS STATEMENT HAS BEEN COORDINATED BY OMB WITH THE CONCERNED AGENCIES.)
July 19, 2000
(House)
H.R. 4118 - Russian-American Trust and Cooperation Act of 2000
(Rep. Ros-Lehtinen (R) Fl and 11 cosponsors)
The Administration strongly opposes H.R. 4118, which states that it would
prohibit the President from: (1) rescheduling or forgiving any
outstanding bilateral Russian debt owed to the United States; and (2)
supporting rescheduling or forgiveness of Russian debt in the Paris Club,
unless the President certifies that Russia has ceased operating an
intelligence facility in Lourdes, Cuba. The Administration believes that
H.R. 4118 is not in the U.S. national security interest.
The security of the American people is the first priority in our
relationship with Russia. We share congressional concerns about the
Lourdes facility and its intelligence collection activities. However,
this legislation is not likely to be an effective lever on Russian
actions. The United States, like Russia, maintains a number of signals
intelligence facilities around the world. One important function of such
facilities for both countries is to collect information to verify arms
control agreements. Successive Administrations have steadfastly resisted
attempts to define national technical means of verification or to
circumscribe the location and use of such systems. Such a hindrance would
run counter to fundamental U.S. national security interests, and in
particular, to the ability to conduct arms verification. Legislation like
this bill may redound adversely to the United States by inviting Russia
and other countries to pursue similar charges against U.S. facilities they
characterize as threatening. Additional explanation or information
relating to facilities such as Lourdes can be provided in classified
briefings.
A stable, democratic Russia also contributes to our national security in
many important ways, including reducing the risk of proliferation of
weapons of mass destruction. Russia's transition to a market-based
economy is equally important to other U.S. interests in that it helps
create a stable democratic Russia that respects private property, enforces
the rule of law, and integrates Russia into global economic institutions.
A reasonable and considered approach to Russia's indebtedness advances
Russia's economic stability. Furthermore, debt rescheduling is an
important tool to protect U.S. financial interests by maximizing the
prospects of repayment. The flexibility to use this tool would be sharply
limited by this legislation. Finally, the bill raises constitutional
concerns by purporting to direct the President or his subordinates to take
particular positions in international organizations.
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