PUBLIC POLICY UPDATE July 1, 2011 WASHINGTON UPDATE Treasury Department Confirms Aug.

2 as Debt Limit Deadline Today in its monthly update, the Treasury Department reaffirmed that August 2 as the date when the government will exhaust its borrowing authority under the current debt limit. Public posturing continued as the president and Congress held competing press conferences this week, arguing publicly over whether revenue increases of some kind should be included in any reduction deal. The Senate cancelled the recess it had planned for the week after July 4, responding to the presidents call for Congress to stay in town and work until a deal is reached. Senate Budget draft expected to be released next week Chair Kent Conrad (D-ND) of the Senate Budget Committee announced that he will release a long-delayed draft budget resolution next week. Committee consideration of the resolution is still expected to be delayed until a deficit reduction deal is reached, to allow the resolution to be used as a vehicle for implementation of such a deal if needed. UPCOMING HEARINGS Hearing: Assessing the Consequences of the Failed State of Somalia Committee: House Foreign Affairs CommitteeAfrica, Global Health, and Human Rights Subcommittee; and Terrorism, Nonproliferation and Trade Subcommittee Witnesses: Panel 1 Donald Y. Yamamoto, principal deputy assistant secretary of state, State Department, Bureau of African Affairs Nancy Lindborg, assistant administrator, USAID, Bureau for Democracy, Conflict and Humanitarian Affairs Panel 2 J. Peter Pham, Atlantic Council, Michael S. Ansari Africa Center Bronwyn Bruton, One World Foundation Martin Murphy, Corbett Centre for Maritime Policy, King's College, London When: Thursday, July 7, 2:00 p.m. Where: 2172 Rayburn House Office Building Contact: 202-226-7812 http://foreignaffairs.house.gov

HEARING SUMMARIES Libya and War Powers Senate Foreign Relations Committee June 28, 2011 Witnesses: Panel 1: Harold Koh, legal advisor, U.S. Department of State Panel 2: Louis Fisher, The Constitution Project Peter Spiro, Temple University Panel 1: Opening Statements: Chair John Kerry (D-MA) This nations values compelled us to join North American Treaty Organization (NATO) led efforts to establish no-fly zone in Libya to keep Qadaffis armed forces from killing his own citizens. The 60-day restriction does not apply since NATO is leading operations. The Ford administration defined hostilities as situations when American troops were exchanging fire, and subsequent administrations have followed that precedent. Ranking Member Richard Lugar (R-IN) President Obama has acted outside the scope of his constitutional powers: o Has not sought congressional authorization and has continued the war for 3 months. U.S. involvement has expanded beyond the presidents ability to direct military operations: o The operation has gone from a mission of protecting civilians to driving Qadaffi out of power; o The U.S. is contributing 70 percent of the information and intelligence; o The world is filled with similar examples to which the American military can be applied, and it is Congress right to exercise that discretion. Harold Koh: The U.S. is playing a supporting role in a NATO civilian protection operation that is limited. The U.S. is acting lawfully and in line with the War Powers Resolution (WPR): o Obama reported to Congress within 48 hours of commencing operations in Libya; The War Powers Resolutions 60-day automatic pullout provision does not apply to Libyan mission: o The legal trigger of this provision is the definition of hostilitiesno standard definition; o The word was made vague to avoid hampering future presidents with a one-size fits all mechanical definition without regards to facts. The U.S. is not in the hostilities envisioned by the WPR when: o The nature of the mission is limitedwe are playing support role in carrying out United Nations Security Council (UNSC) Resolution; o The exposure to threat is limitedno casualties, no armed confrontation; 2

The U.S. is using limited military meansaerial operations have been moderate and the bulk of U.S. involvement has been intelligence and refueling efforts; o 75 percent of all sorties and 90 percent of strike sorties do not involve any American soldiers or supplies. The spirit of the WPR was not to be so rigid as to prevent the president from taking action amidst the circumstances of Libyan mission: o Request by UN Security Council, NATO, and the Arab League, with four Muslim countries contributing to the coalition. o

Questioning: Ranking Member Richard Lugar (R-IN) 1. If another country employed the same acts against us as we have against Libya, we would define it as hostility. Will UN Resolutions define our position on what constitutes hostilities in future situations? Koh: This situation is unusual because our role is so limited, not because of the UNSC Resolution. Sen. Robert Casey (D-PA) 1. Do you have any concerns about precedents as it relates to executive power? Could this break new ground? Koh: o The executive branch has exceeded its powers in the past. o We have used historical examples to see that this fits within precedent. Sen. Bob Corker (R-TN) 1. Nobody from the Justice Department or Pentagon has been willing to testify. Are you still glad that you went this route, as it relates to making the argument about the WPR? Koh: o War powers are in his jurisdiction. o Should have come earlier to testify for hearings; takes some responsibility for that. 2. We could drop a nuclear bomb on Tripoli and not be in hostility under your definition. This argument says that the president can order predator strikes anywhere in the world. Koh: o The scenario is very different. o Predators are playing a particular role to take out Qadaffis forces to stop him from turning them on his own people. Sen. Jim Webb (D-VA) 1. For the record, there has been reporting that there was a good bit of debate on this issue within the administration. What is the constitutional limitation on the assassination of a head of state? Koh: o The assassination of a head of state is restricted by executive orders. o The reason ties have not been severed with the Qadaffi regime is to allow Qadaffi to be held accountable for what he has done. Sen. Mike Lee (R-UT) 1. How do you define the term hostilities? 3

Koh: a situation in which units of U.S. armed forces are actively engaging in exchanged units of fire with opponents of hostile forces. 2. In your opinion, is the question of constitutionality of the WPR ever going to be solved by a court? Koh: highly unlikelyearlier suits have been dismissed. Sen. Chris Coons (D-DE) 1. What are your views of expropriating the funds of a nation who we havent withdrawn recognition from, and what are the foreign policy implications? Koh: o There is currently pending legislation designed to address that question because existing law is designed as freeze-not-seize. o There is still a question of international law on this issue. Sen. James Risch (R-ID) 1. There is also a very serious situation in Syria, where the citizens are unarmed. At least in Libya there is an armed conflict. Why didnt the U.S. get involved in Syria? Koh: o There is only one UNSC Resolution that is this detailed and authorizes U.S. military involvement. o That is where weve drawn our application from. Sen. Jeanne Shaheen (D-NH) 1. If NATO troops are actively seeking to topple Qadaffis government, is that consistent with the UNSC Resolution? Koh: o Targeting Qadaffi is not under NATOs rules of engagement. o The U.S. is also using other tools in this operation, such as diplomacy, development, asset freezing and referral to the International Criminal Court (ICC) to have Qadaffi removed. 2. What would be the impact of recognizing the Transitional National Council (TNC)? Koh: U.S. is reluctant to recognize entities that do not control entire countries and are reluctant to de-recognize leaders who still hold power over some parts. Panel 2: Opening Statements: Louis Fisher: The framers of the U.S. Constitution guided the war-making powers in a way that is applicable today because of their judgments about human nature. Other governing bodies cannot take away the powers of Congress to make war. o The UN Security Council cannot mandate any use of military force by the U.S. o Authorization from NATO does not mandate the U.S. to go to war. Peter Spiro: WPR does not provide useful tool for inter-branch dialogue. President Clintons use of our military in Kosovo was comparable and accepted by Congress, even after the 60-day clock had expired. Literal language approaches to contextual meanings seem inappropriate. 4

Congress has no need for WPA at all because it can use other institutional tools to participate in war-making decisions.

Note: The hearing went to recess after opening statements, but never reconvened for questioning. If the committee addresses this at a later date, we will report it in a future Weekly Update. Nomination Hearing of Derek Mitchell to be Special Representative and Policy Coordinator for Burma, and Other Ambassador Nominations Senate Committee on Foreign Relations June 29, 2011 Witness List: Derek Mitchell, to be special representative and policy coordinator for Burma Frankie Reed, to be ambassador to the Republic of the Fiji Islands, and to serve concurrently as ambassador to the Republic of Nauru, the Kingdom of Tonga, Tuvalu, and the Republic of Kiribati

Opening Statements: Sen. Jim Webb (D-VA) The special representative and policy coordinator for Burma position is an important position that needs to be filled. The U.S. needs to take advantage of the changing political climate in Burma. Being ambassador to the island countries is difficult because of the distance and different economic and political structures of each country. Rep. Eni Faleomavaega (D-American Samoa) (note: came to introduce Frankie Reed) The U.S. needs to take a more serious interest in the Pacific islands. The U.S. has no policy towards the Pacific region except with Australia and New Zealand. Derek Mitchell, to be special representative and policy coordinator for Burma Burma is a country rich with history, culture, and opportunity. U.S. objectives of peace, democracy, and respect for all people should not change. The U.S. needs to have direct dialogue with the regime and respond flexibly. Burma-focused international actors need to be better coordinated. Frankie Reed, to be ambassador to the Republic of the Fiji Islands and four island nations The 2006 military coup in Fiji has caused economic and political problems. The islands: o Will be the first to experience the effects of climate change and environmental degradation; o Are partners on regional and global issues; and o Are in a strategic location. The U.S. should: o Work on disaster preparedness; o Advocate for early elections in Fiji; and o Work with the government on law enforcement training. Questioning: 5

Sen. Jim Webb (D-VA) 1. How will the special representative position fit into the State Department hierarchy? Mitchell o That will need to be worked out over time. o The special representative will work closely with policy makers at the State Department. 2. How will you be able to engage the government since the U.S. has not had an ambassador in Burma since 1990? Mitchell o The U.S. will be able to engage effectively. o It is a matter of what the U.S. says and how it says it. o The U.S. needs to take this one step at a time. 3. What is your view of the Association of Southeast Asian Nations (ASEAN)s Burma policy? Mitchell o ASEAN has traditionally taken the approach of noninterference and strict notions of sovereignty. o Key members in ASEAN have made the transition to democracy. o They take a consensus approach that prevents them from taking a hard line with Burma. 4. What is the State Departments view on the possibility the Burma may chair ASEAN in 2014? Mitchell: The State Department doesnt have a policy yet. 5. What is your opinion on this possibility? Mitchell: ASEAN sees Burma as an embarrassment. 6. What type of model will bring about political and economic change? Mitchell o Each country has its own model. o Indonesia could be a good model. 7. Do sanctions from the outside affect economic growth? Mitchell o The regime did this to itself. o The regime is not seeking real change. o Sanctions arent the main problem. 8. Is the U.S. cutting off its ability to help Burma because of the economic sanctions? Mitchell o The law must be followed. o The U.S. needs to be flexible and really watch what is going on in Burma. 9. What are the challenges of being an ambassador to these island nations? Reed o Distance is the greatest challenge because it requires more time and manpower. o The U.S. needs to understand each nations economy. 10. What is the involvement of other nations in this region? Reed o U.S. impact is most apparent and closely watched by other nations. o There is room for other powers to come in and fill voids it they want to. o Sometimes the U.S. is not as physically present as some of these nations would like. 11. What is most important for the U.S. to do? 6

Reed o

These countries need democratic reform, although some have taken good steps. o The Peace Corps has had a positive impact. o The U.S. needs to: Engage civil society; Have a physical presence; and Invest in small businesses. 12. How will the U.S. deal with Burmas relationship with North Korea? Mitchell o This relationship is critical. o There is evidence of engagement. o The U.S. needs to explain the stakes to Burma. Afghanistan Reconstruction Contracts: Lessons Learned and Ongoing Problem Senate Committee on Homeland Security and Governmental AffairsAd Hoc Subcommittee on Contracting Oversight June 30, 2011 Witnesses: Panel 1: Larry Walker, The Louis Berger Group Wahid Hakki, Contrack International Panel 2: William Solis, director of defense capabilities and management, Government Accountability Office David Sedney, deputy assistant secretary of defense on Afghanistan, Pakistan and South Asia, Department of Defense Kim Denver, deputy assistant secretary of the army for procurement, U.S. Army Alexander Thier, assistant to the administrator and director of the office of Afghanistan and Pakistan Affairs, USAID Panel 1: Opening Statements: Chair Claire McCaskill (D-MO) Oversight efforts in Afghanistan are weak: o Sustainability is not being given the attention it warrants. The government should apply lessons from Iraq to Afghanistan. The Department of Defense (DOD) is undertaking projects that are traditionally under USAIDs mandate. Ranking Member Robert Portman (R-OH) The troop withdrawal will likely increase the number of contractors in Afghanistan. Need to make sure Afghanistan can sustain what the U.S. leaves behind. Need better vetting of Afghan contractors.

Larry Walker: The construction in Afghanistan is improving quality of life there. Louis Berger would be willing to cooperate with higher oversight. Whahid Hakki: Contrack has opened a training center for training Afghans. The quick turnover of field staff is creating problems for contractors with continuity and pay. There needs to be more coordination of U.S. government departments. Questioning: Chair Claire McCaskill (D -MO) 1. On the Gardez-Khost Highway, did you know about the security issues before starting the project? Walker: o Attacks in the region were low when the project began. o Over time the number of attacks on the project has increased. o There was no reason to assume that the security situation would deteriorate. 2. What are the 164 subcontractors on the project for? Walker: Most handle smaller jobs like clearing ditches. Ranking Member Robert Portman (R-OH) 1. The Louis Berger firm received a fine for overbillinghow can you assure Congress that this will not happen again? Walker: o Have brought in outside accounting firms to evaluate the firms finances. o The individuals that were responsible were fired. o Have restructured that system and created a more robust ethics department. Chair Claire McCaskill (D -MO) 1. How often do you see USAID officials? Hakki: o Have regular meetings. o However, there has only been one robust planning meeting in nine years. Walker: USAID does get out to the project site, but travel restrictions do limit their visits. 2. Do you think that oversight has been improved? Hakki: Definitely, but there is still room for improvement. 3. What can you tell us about bribes? Hakki: The company follows a strict anti-bribe policy. Ranking Member Robert Portman (R-OH) 1. Are the already-constructed parts of the Gardez-Khost Highway falling apart? Walker: There is a crack that was caused by a fault in the mountain. 2. Who will pay for the repair? Walker: It is not the responsibility of the contractor. 3. How do we engage Afghans in sustainability? Walker: Working with the Afghan government to set up funds that will maintain the roads being built.

Panel 2 Opening Statements: William Solis: There is an issue with gaps in DoDs system of vetting non-U.S. contracting firms. o The USAID vetting system developed in January 2011 could suffer similar gaps given the threshold for vetting is firms with contracts above $150,000. There are problems with training, technical capacity, and overall oversight and quality within DoDs ranks of contract oversight representatives (CORs). David Sedney: The key to success in Afghanistan is the Afghan security force. Reconciliation is gaining traction. The Afghan community is taking an active part in the transition. Kim Denver: There is a 1:1 soldier-to-contractor ratio in Afghanistan right now. Alexander Thier: Need to improve sustainability and accountability. Transition success depends on sustainability. Building Afghan capacity is a key component to moving forward: o Kabul electricity is paid for by a commercial system. USAID has tripled its staff in Afghanistan: o The number of staff in Afghanistan responsible for oversight has increased to 71 people. Questioning: Chair Claire McCaskill (D -MO) 1. Who is in charge of contracting within DoD? Sedney: Doesnt know. 2. How is the $17 billion being requested for Afghan reconstruction being allocated? Thier: $3 billion is going to USAID and an extra $1 billion is going to the State Department. Sedney: Unsure what DoD should receive. 3. How much will the Commanders Emergency Response Program (CERP) spend this year? Sedney: $300-400 million for non-long-term reconstruction. 4. Why is CERP being used to build infrastructure? Sedney: CERP is not being used to build infrastructure, the Afghanistan Infrastructure Fund (AIF) is doing that. 5. Why is information about contracting accounts not being accurately reported? Denver: Working on revamping the system to avoid issues in the future. Sen. Robert Portman (R-OH) 1. What approaches are being taken to ensure sustainability? Thier: o Certifying that programs have sustainability plans. o Assessing the sustainability of every program being implemented this year. 9

2. What about the sustainability issues with the power plants being built in Afghanistan? Thier: There are sustainability plans that will be implemented. 3. What is the sustainability prospect for the Afghan security forces? Sedney: o Currently Afghanistan cannot sustain the forces. o U.S. national interest says we should continue to support the security forces after the withdrawal of troops. Chair Claire McCaskill (D -MO) 1. Who decides what agency builds what in Afghanistan under the AIF? Sedney: o Recommendations come from the field. o If USAID cannot pay for the project, DoD will take over the project. o The decision is a combined civilian-military effort. 4. Why are we not requiring audits from Kabul Bank? Thier: o The U.S. does not give support to Kabul Bank. o Support goes to the Afghan government and the central bank. o Banking oversight is a sovereign function of the Afghan government. o Asking for audits of the banks. 5. Is there any analysis of how CERP spending is linked to military success? Sedney: There is no study linking CERP to military success. 6. Are agriculture alternative programs successful in curbing opium production? Thier: Yes, but does not have specific measures in front of him right now. ARTICLES AND REPORTS Alertnet June 29: Rust-resistant wheat could ease climate threat to food supply Wheat stem rust could potentially damage 90 percentage of the global wheat crop, increasing food security concerns. Scientists are trying to create a resistant strain of wheat, but are concerned that countries that have not been affected will be less likely to plant the new variety. June 29: Violence, anger grow in Haitis quake camps - report Many Haitians have been living in emergency camps for almost a year and a half, and camp violence is on the rise. One of the main challenges facing the Haitian government and donors is how to transition people to homes that will be safer and more sustainable than before. BBC June 30: Rival Sudan forces to quit border ahead of independence A new mediated agreement requires troops to leave a 12 mile buffer zone along the north-south border of Sudan once they pull out. Further, southern fighters in South Kordofan will be integrated into the northern army. There has yet to be an agreement on how to deal with Sudans oil wealth. Reuters June 28: Worst drought in 60 years hitting Horn of Africa - UN Over 10 million people in the Horn of Africa are affected by the worst drought in 60 years. The drought has caused a severe food crisis and an increase in malnutrition rates. Kenya and Somalia are experiencing pre-famine conditions.

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UN confirms at least 121 women raped in Congo July 1: At least 121 women were raped in South Kivu between June 11-13, according to UN human rights investigators. This is the largest reported number of rapes in almost a year. Washington Post June 27: International court issues Gaddafi arrest warrant On Monday, the International Criminal Court issued warrants for Libyan leader Moammar Gaddafi, as well as his son and a top military chief. This is only the second warrant issued for a sitting head of state. Scholars debate whether the warrant will help or harm the situation in Libya. June 30: UN rights chief says China should help bring Sudans leader to justice UNHCR expressed disappointment at China for welcoming Sudans president this week, saying that China has a duty to enforce the ICC warrant by arresting President al-Bashir. Other countries have also failed to arrest al-Bashir during visits, fearing the impact on the situation in Darfur. 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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