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sion, including any document evaluating the Commission's accounting standards.

(5) CHILDREN'S SURVIVAL ASSISTANCE.—

(A) All documents concerning the selection of organizations to distribute the assistance, provided for in section 8 of Public Law 100-276, for chil

dren who are victims of the Nicaraguan civil strife, specifically including—

(i) any application or other document submitted to the Agency for International Development by any organization seeking to participate in the distribution of that assist

ance;

(ii) any document submitted to the Agency for International Development to establish that an organization meets the statutory criterion of being "nonpolitical";

(iii) any other document in the possession of the Agency for International Development or the Department of State concerning whether an organization meets the statu

tory criterion of being "nonpolitical"; and

(iv) any document prepared by the executive branch in determining which organiza

HRES 473 IH

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tions would be selected to distribute such

assistance.

(B) All contracts, grant agreements, or other agreements between the Agency for International

Development and an organization selected to distribute such assistance.

(C) All documents concerning compliance with the requirement of section 8(c) of Public Law 100-276 that one-half of the children's survival assistance be provided though organizations operating inside Nicaragua, specifically including—

(i) any document concerning the selection of such organizations;

(ii) any document concerning the allocation of funds among such organizations; and

(iii) any document concerning any difficulties that have arisen with respect to com

pliance with that requirement, including any document describing any objection raised by the Government of Nicaragua to the provision of such assistance or describing the United States response to such objections.

(D) All documents showing how the funds

made available by section 8 of Public Law 100

276 have been used.

HRES 473 IH

Chairman FASCELL. All those in favor of the motion signify by saying, aye?

[Chorus of ayes.]

Chairman FASCELL. All those opposed, no.

[No response.]

Chairman FASCELL. The ayes have it. So ordered. And thank you very much.

Mr. HYDE. Mr. Chairman.

Chairman FASCELL. Mr. Hyde.

Mr. HYDE. Before Mr. Panetta leaves, I would like to direct just one question to him.

Chairman FASCELL. Certainly.

Mr. HYDE. Thank you.

Mr. Panetta, on page 9 of your statement, I think there's something immensely interesting about the Children's Survival Assistance Program. You point out that $17.7 million for a children's survival assistance program to provide medical care to children affected by the war in Nicaragua, that's the law, and to date, $12.2 million of it has been earmarked for nine private voluntary organizations to provide a wide range of services to children on both sides of the conflict.

But less than $1.5 million has actually been spent for this program, "because of barriers erected by the Nicaraguan Government to the expenditure of U.S. funds for children."

Is that your statement?

Mr. PANETTA. That's correct.

Mr. HYDE. I thank you, Mr. Panetta-I would hope that Mr. Crockett who chairs the Western Hemisphere Subcommittee would direct official inquiry, either by resolution or letter, to the Nicaraguan Government which is preventing money from going for medical care for children affected by the war.

Now, it would seem to me very much within the jurisdiction of this subcommittee on which I have the honor to serve to question this Government of Nicaragua as to why it's preventing millions of dollars from helping children. And knowing the gentleman's compassion, I would hope and pray that he, or the chairman of this committee or others in positions of authority would question Mr. Tunnerman before he leaves town, or anybody else, maybe the Ortega Brothers, or Borge, on why they're using children to be pawns in this struggle.

And I thank you for the time.

Mr. PANETTA. Mr. Chairman, if I might just follow up on that, according to the AID report, there are about four of the eight organizations, four of the organizations that have been given funds are located within the country and are already performing some role, and have gone ahead to try to identify beneficiaries' needs and hire additional staff and order commodities for activities in Nicaragua. But the problem is that overall these organizations are having a difficult time getting formal clearance by the Government itself. Chairman FASCELL. Thank you very much, Mr. Panetta.

Mr. Weiss.

Mr. WEISS. First, I would like to express my support for the suggestion of the gentleman from Illinois that we inquire as to what the situation is and why it exists.

But I wonder if you recall that at the time that the AID package was up that the people on the other side of the aisle, that is, Mr. Hyde's party, objected to the package because they said that the $17.5 million was not going for children, it was going to enrich the coffers of the Nicaraguan Government. So I welcome the change in attitude on this particular program.

Mr. HYDE. Would the gentleman yield?
Mr. WEISS. I'd be very pleased to yield.

Mr. HYDE. I don't know about whom the gentleman is speaking, but as far as I'm concerned, I was supportive of anything that would help children, but I wanted to make sure it didn't go through the Government, just as any compensation for the families of the people shot down on the Iranian airplane. I want to make sure that doesn't go to the Ayatollah.

Mr. WEISS. Recapturing my time, if I may, I would just direct the gentleman's attention to the debate on that particular issue on the floor of the House.

Chairman FASCELL. Thank you very much, Mr. Panetta.

Mr. PANETTA. Thank you.

[A letter from the Department of State regarding H. Res. 473 follows:]

H.R. 1587

DEPARTMENT OF STATE

WASHINGTON

July 12, 1988

Dear Mr. Chairman:

On June 15, Representative Leon Panetta introduced H. Res. 473, a Resolution of Inquiry regarding the delivery of humanitarian aid to the Nicaraguan Resistance by the U.S. Agency for International Development. It is my understanding that this resolution will be the subject of a hearing before your committee on July 13.

By sustaining the Nicaraguan Resistance as a viable force able to deal with the Government of Nicaragua on a firm footing and by helping treat children affected by the civil strife, the United States is nurturing the hopes for democracy and reconciliation in Nicaragua. A.I.D.'s humanitarian aid program has been fully open and accountable from its inception. For that reason, we were concerned when Mr. Panetta's resolution appeared to challenge the integrity of these operations.

The Department of State and A.I.D. have cooperated fully in order to address Mr. Panetta's questions. Since the introduction of the Resolution of Inquiry, A.I.D. officials have met twice with Mr. Panetta and conferred with your representatives on numerous occasions. A.I.D. has willingly provided your committee with over 150 documents requested by Mr. Panetta and answered detailed questions on every aspect of this humanitarian program.

In addition, Mr. Panetta and representatives of the House Foreign Affairs Committee have interviewed representatives of the General Accounting Office, A. I.D.'s Inspector General's Office, and the Price Waterhouse accounting firm, which are each monitoring A.I.D.'s operations. Price Waterhouse alone has produced nearly two dozen audit statements that have been reviewed by Mr. Panetta and representatives of your committee. G.A.O. auditors have attested to A.I.D.'s accountability, openness, and cooperation, based on their continuing on-the-ground monitoring of this program.

The Honorable

Dante Fascell,

Chairman,

Committee on Foreign Affairs,

House of Representatives.

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