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H.Doc.108-131 MEMORANDUM OF UNDERSTANDING BETWEEN THE SECRETARIES OF STATE AND ...


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108th Congress, 1st Session - - - - - - - - - - - - House Document 108-
130
 
                        FY 2004 BUDGET AMENDMENT

                               __________

                             COMMUNICATION

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

     FY 2004 BUDGET AMENDMENT FOR INTERNATIONAL ASSISTANCE PROGRAM

<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>


 September 25, 2003.--Referred to the Committee on Appropriations and 
                         ordered to be printed
                                           The White House,
                                    Washington, September 24, 2003.
Hon. J. Dennis Hastert,
Speaker of the House of Representatives,
Washington, DC.
    Dear Mr. Speaker: I ask the Congress to consider the 
enclosed FY 2004 budget amendment for International Assistance 
Programs. This amendment would not increase the budgetary 
resources proposed in my FY 2004 Budget.
    The details of this request are set forth in the enclosed 
letter from the Director of the Office of Management and 
Budget.
            Sincerely,
                                                    George W. Bush.
               [Estimate No. 18, 108th Cong., 1st Sess.]

                 Executive Office of the President,
                           Office of Management and Budget,
                                Washington, DC, September 24, 2003.
The President,
The White House.
    Submitted for your consideration is a FY 2004 budget 
amendment for International Assistance Programs. This proposal 
would not increase the budgetary resources in your FY 2004 
Budget.
    The proposal would authorize implementation of a new, no 
subsidy $550 million Foreign Military Financing loan to the 
Czech Republic. The loan could be used to finance the purchase 
of 14 used 16 aircraft from the United States, including 
related training, weapons, and logistical support. The loan 
could also be used to purchase U.S. training, weapons, and 
logistical support should the Czech Republic purchase U.S. 
aircraft (either F-16s or F-18s) from Belgium, the Netherlands, 
Turkey, or Canada. The Czech Republic's acquisition of U.S. 
fighters would greatly improve the interoperability of its air 
force with NATO and the United States. As a member of NATO, a 
supporter of the war on terrorism, and a contributor to peace 
and stability in Iraq, the Czech Republic is integral to our 
efforts to strengthen the Trans-Atlantic Alliance.
    I have carefully reviewed this proposal and am satisfied 
that it is necessary at this time. Therefore, I join the 
Secretary of State in recommending that you transmit the 
amendment to the Congress.
            Sincerely,
                                          Joshua B. Bolten,
                                                          Director.
    Enclosure.
                   INTERNATIONAL ASSISTANCE PROGRAMS


                   International Security Assistance


                   FOREIGN MILITARY FINANCING PROGRAM

FY 04 Budget Appendix Page: 904-905
FY 04 Pending Request: $4,414,000,000
Proposed Amendment: Language
Revised Request: $4,414,000,000

    (In the appropriations language under the above heading, 
insert the following new paragraph after the first paragraph:)
    During fiscal year 2004, direct loans under section 23 of 
the Arms Export Control Act may be made available under this 
paragraph only for the Czech Republic, gross obligations for 
the principal amounts of which shall not exceed $550,000,000: 
Provided, That such loans shall be repaid in not more than 
twelve years, including a grace period of up to five years on 
repayment of principal: Provided further, That no funds are 
available for the subsidy costs for these loans: Provided 
further, That the Government of the Czech Republic shall pay 
the full cost, as defined in section 502 of the Federal Credit 
Reform Act of 1990, as amended, associated with these loans, 
including the cost of any defaults: Provided further, That any 
fees associated with these loans shall be paid by the 
Government of Czech Republic prior to any disbursement of loan 
proceeds: Provided further, That no funds made available to the 
Czech Republic under this Act or any other Act may be used for 
payment of any fees associated with these loans.
    This proposal would authorize implementation of a new, no 
subsidy $550 million Foreign Military Financing (FMF) 12-year 
loan to the Czech Republic. The loan could be used to finance 
the purchase of 14 used F-16 aircraft from the United States, 
including related training, weapons, and logistics support. The 
loan could also be used to finance the purchase of training, 
weapons, and logistics support from the United States in the 
event the Czech Republic purchases U.S. aircraft (either F-16 
or F-18s) from Belgium, the Netherlands, Turkey, or Canada. The 
Czech Republic's acquisition of U.S. fighters would greatly 
improve the interoperability of its air force with NATO and the 
United States.
    Under the proposal, the Czech Republic would assume all the 
costs or fees associated with the loan, including any 
associated with non-payment exposure risks. Thus, there will be 
no U.S. subsidy costs and this request does not require new 
appropriations.

                                <greek-d>


Pages: 1

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