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QUESTIONS SUBMITTED BY SENATOR INOUYE

SENATOR INOUYE. What is the amount currently available for obligation in the United States Emergency Refugee and Migration Assistance Fund?

You have requested a fiscal year 1977 supplemental appropriation of $6,360,000 to replenish the fund, and you are now requesting a fiscal year 1978 appropriation of $15,000,000 to add further to your reserve.

If the Congress approved both of your requests, what amount would then be available for obligation?

Your request for the regular Migration and Refugee Assistance Program includes $13,699,000 for a program which heretofore has been funded through the Emergency Fund. Why, then, do you need such a large reserve?

MR. CARLIN. The Emergency Fund has an unobligated balance at present of $1,340,000.

If Congress appropriates both the FY 1977 supplemental request and the FY 1978 regular request, the amount available for obligation from the Emergency Fund would be $22,700,000 at the beginning of FY 1978. However,

Mr. Chairman, this would be the case only if there are
no refugee emergencies of any kind through September 30,
1977 for which the Emergency Fund might be used. Our
experience suggests that this is highly unlikely.

Our regular budget request does now include funds for Soviet refugees not going to Israel. This program has not always been funded through the Emergency Fund. In FY 1973 the special appropriation initiated by Congress was used; in FY 1974 and FY 1975 a combination of the special appropriation and a transfer of foreign assistance funds was used; in FY 1976 a similar combination of the special appropriation and the Emergency Fund was used; and for the second quarter of FY 1977 the Emergency Fund is being used pending the appropriation of the FY 1977 supplemental. The shift in funding to which you refer does ease somewhat the pressure on the Emergency Fund which had driven reserves to dangerously low levels. The Fund must be able to support those "urgent and unforeseen", yet unpredictable emergencies to which I alluded earlier in my prepared statement and we believe reasonable reserve is maintained by the proposed appropriation. Mr. Chairman, the amount that would be available in the Fund even if there are no emergencies whatsoever is substantially less than the amount Congress authorized when it established the Fund. We believe it is needed.

SENATOR INOUYE. If one of the programs funded under the regular Migration and Refugee Assistance Program were to experience a funding shortfall, would you feel free to make up the shortfall from the Emergency Fund or would you come to the Congress for supplemental funding of the regular program?

MR. CARLIN. Mr. Chairman, Congress in creating the Emergency Fund stated that it should be used to meet "unexpected urgent refugee and migration needs". Therefore, I would not feel free to use the Emergency Fund to make up a funding shortfall for one of our regular migration and refugee assistance programs. However, it is entirely possible that in the context of one of our regular programs, e.g. the Soviet refugee program, an extraordinary influx of refugees might occur an influx exceeding by far our budget proposal; we might then consider recommending a drawdown from the Emergency Fund to meet such an unexpected urgent need, especially if timing did not permit us to come to the Congress for supplemental authorization and funding of the regular program.

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SENATOR INOUYE. Mr. Carlin, The Christian Science Monitor recently reported (February 23, 1977) that more than $47 million in refugee assistance funds have been pocketed through corruption in Portugal.

Can you verify the accuracy of this report?

How much has the United States contributed in refugee assistance to Portugal?

Can you assure the Subcommittee that our assistance has been properly used?

MR. CARLIN. Mr. Chairman, I understand that through USAID the United States has contributed $35 million in refugee assistance to Portugal. While I cannot verify the accuracy of The Christian Science Monitor report, the U.S. Embassy in Lisbon reports that no U.S. funds have been used for payment of room or food bills in hotels and pensions the area of alleged corruption. As we understand it, USAID funds have been used in the following

areas:

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(1) Emergency family allowances upon arrival

at airport;

(2) Education allowances for refugee children;
(3) Medical allowances;

(4) Basic furnishings such as clothing, beds,
mattresses, etc.

(5) Grants to voluntary agencies such as

Catholic Relief Services.

In terms of Refugee and Migration funds, we have contributed the sum of $1 million to ICEM to assist in the resettlement of Portuguese returnees from Angola to overseas destinations, principally in Latin America. I can assure the Subcommittee that these funds are being properly used.

INTERNATIONAL NARCOTICS CONTROL

STATEMENT OF MATHEA FALCO, SENIOR ADVISER TO THE SECRETARY OF STATE AND COORDINATOR FOR INTERNATIONAL NARCOTICS MATTERS

ACCOMPANIED BY:

DAVID H. ERNST, DEPUTY SENIOR ADVISER FOR INTERNA-
TIONAL NARCOTICS MATTERS

RONALD L. NICHOLSON, DEPUTY FOR PROGRAM PLANNING

INTRODUCTION OF ASSOCIATES

Senator INOUYE. Our next witness is Mathea Falco, Senior Adviser to the Secretary of State and Coordinator for International Narcotics Matters. Welcome.

MS. FALCO. Thank you.

Senator INOUYE. We have read your statement and without objection your statement will be made a part of the record. You may proceed as you wish. You may summarize it.

Before proceeding, will you introduce your assistant.

MS. FALCO. This is David H. Ernst, Deputy Senior Adviser for International Narcotics Matters. On my right is Ronald L. Nicholson, Deputy for Program Planning, Office of International Narcotics Matters.

Senator INOUYE. Please proceed.

ALLOCATION TABLE

I note that the requested amounts include a $6 million contribution to the United Nations fund for drug abuse control, and so the total amount requested is $39 million. Without objection, the table detailing the proposed allocation will be made a part of the record at this point. [The table follows:]

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