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• $12 billion for stability operations, military operations to root out terrorist networks and deal with any remaining pockets of resistance, humanitarian assistance, and operations to search for and destroy Iraqi WMD.

• $1.5 billion for coalition support in the global war on terror—including $1.3 billion for reimbursement to Pakistan and other key cooperating nations assisting the effort in Afghanistan, and $165 million for training of the Afghan National Army.

• And $6.1 billion for other requirements outlined in the request to support military operations in Iraq and the global war on terror.

Of the $62.6 billion the President has requested for DoD in this supplemental, $30.3 billion are funds that have already been spent or committed—including the cost of flowing forces into the region to support the diplomatic efforts before Operation Iraqi Freedom began.

If the Iraqi regime had agreed to voluntarily disarm and prevent a war, the costs of sustaining that military pressure through the rest of the fiscal year would have been in excess of $40 billion. So even without a war, the costs of disarming Iraq would have been significant.

The President has also requested funds in this supplemental for both an Iraq Relief and Reconstruction Fund, and a Natural Resources Risk Remediation Fund to help with emergency fire fighting and repair of damage to oil facilities. It is important that we have these resources available.

But let me be clear: when it comes to reconstruction, before we tum to the American taxpayers, we will turn first to the resources of the Iraqi government itself and the international community. That is why the President last week seized frozen Iraqi assets in the United States—so that they can be put to use to rebuild the country. Once Saddam Hussein is gone, the U.S. will work with the Iraqi Interim Authority that will be established to tap Iraq's oil revenues, the funds Iraq is owed in the UN's "oil for food" program, and other Iraqi resources to fund their reconstruction effort.

Reconstruction will require a significant international effort. The threat posed by Saddam Hussein's regime is a global threat—which is why some 47 nations have publicly associated themselves with the coalition in Iraq, and many more are helping privately. Already, a number of countries have indicated that they want to help with reconstruction and stability in a post-Saddam Iraq.

Mr. Chairman, in addition to needing this supplemental, we also need greater flexibility in how we spend it-—so we can adjust to the constantly changing circumstances of the war.

It is our hope that the period of intense combat in Iraq will be as short as possible—and that the coalition operations can shift quickly from combat to restoring stability and civil order, supplying humanitarian assistance, and helping Iraq's people rebuild and assume functional and political

Thai is our hope. But when it will happen is not knowable.

• We do not know when the period of intense combat will end.

• We do not yet know how much damage there will be to Iraq's infrastructure—though the coalition forces are making efforts to keep that damage minimal while inflicting maximum damage to regime targets.

• We do not know how the international effort will unfold and the specifics of what each country is willing to offer.

• Moreover, France has announced it will veto any new Security Council resolution and block coalition efforts to give the UN an appropriate role in the post-Saddam reconstruction effort.

• That means we cannot know the extent to which the UN will be permitted to help the Iraqi people, what access the coalition will have to the UN's "oil-for-food" program funds, when economic sanctions might be lifted, and the answers to many other unknowns.

The point is that: with so many unknowns, we will need some flexibility. Just as the military plan General Franks developed has flexibility built into it so that our forces can deal with unexpected events on the battlefield, our budget plan must also have flexibility to deal with changing circumstances on the ground.

That is why it is important that the funding requested for the Defense Emergency Response Fund (DERF) be appropriated in that fund—with its own transfer authority—so we will have the flexibility to respond to the inevitable changes on the ground.

It is also important that Congress approve the general provisions the President has requested in the supplemental—especially the request for increased general transfer authority (GTA). The President has requested a General Transfer Authority ceiling of 2.5% of the FY 2003 DoD budget. That figure is reasonable. Increased flexibility is needed.

The President has requested a war supplemental of $74.7 billion. That figure is not the cost of the war; that figure is the best estimate of the money that the State Department, the CIA, the Department of Homeland Security, and the Department of Defense need to carry us from October 1, 2002 through the end of this fiscal year.

We can't know how long the effort in Iraq is going to last—and we certainly can't tell what it is going to cost. It is not knowable.

What I do know is that, whatever it ends up costing, it will be small compared to the cost in lives and treasure of another attack like the one we experienced on September 11"1—or a weapons of mass destruction attack that could be far worse.

The Milken Institute estimated that metropolitan areas throughout the U.S. sustained losses of about $191 billion as a result of 9/11 and some 1.6 million jobs were lost as a result of the

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attacks. And that's not to mention the cost in lives lost and the pain and the suffering of so many who lost husbands and wives, fathers and mothers, sons and daughters, sisters and brothers on that terrible day.

Our mission in the global war on terror is to do everything in our power to prevent a chemical, biological or nuclear attack that would make 9/11 seem modest by comparison—an attack where we could lose not 3,000 people, but 30.000 or 300,000, or more.

Yes, $74.7 billion is a lot of money—but the cost of not investing that $74.7 billion would be far greater.

Mr. Chairman, we need the funds—and we need flexibility in how they are spent, so we can adapt to unforeseen and unknowable circumstances that will unfold in the weeks and months ahead.

We will continue to brief the Congress regularly as events unfold on the ground, as these unknowns come into better focus. We appreciate the strong support you have shown for the President, and for the men and women in uniform. They are doing a remarkable job and 1 know that they will succeed in their mission.

I'd be happy to take your questions.

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Mr. Lewis. Excuse me, Mr. Secretary. I know that General Myers has to leave at 2:15, which is not very long from now, but I know he would like to at least hear what might happen to the supplemental by way of schedule, and we are privileged to have the Full Committee Chairman here, if he would, just a few moments to give us an idea what we will do with the supplemental.

Remarks Of Mr. Young

Mr. Young. Mr. Chairman, thank you very much. I think hopefully the Secretary and the Chief will appreciate our schedule. Actually the hearing that we are in now is the last hearing. We got this supplemental package on Monday morning. We have vetted it as thoroughly as we could between then and today. We have had four hearings today and we are prepared to circulate this bill tomorrow, with a plan to mark it up on Tuesday morning in the Full Committee. Should that happen successfully, we will then hopefully have it on the floor by Friday. I think Senator Stevens is moving on a very fast track as well, and he and I are trying to keep our bills as close together as we can, so that a conference will not be difficult and that we can have this on the President's desk very shortly.

We understand the importance of meeting wartime requirements. There have been suggestions, Mr. Chairman and Mr. Secretary, that maybe we could transfer some money from the defense part of this bill to do some other things, and I want to give my word that is not going to happen. We are not going to take any money out of the defense account to move it someplace else.

Secretary Rumsfeld. That is good news.

Mr. Young. We hope to maintain this schedule. We understand the importance of it, and we want to congratulate you and all of the military services for the really good job you are doing many, many thousands of miles away from home. That is a long supply line and you are doing a tremendous job.

Secretary Rumsfeld. Thank you very much.

Mr. Lewis. Thank you, Mr. Chairman.

General Myers. That is really good news, Mr. Chairman. Thank you very much.

Mr. Lewis. Welcome. And we know you are on a short string.

Summary Statement Of General Myers

General Myers. Thank you, and I will keep this statement brief.

Chairman Lewis and members of the Committee, Chairman Young, it is a pleasure to be here with you. I will not repeat what the Secretary said, but I want to take this opportunity to point out the dramatic successes that our servicemen and women have achieved this week in Iraq. They have executed our plan superbly and have exploited the flexibility inherent in that plan. Their performance is marvelous, and we are truly proud.

The environment, as we have seen on TV, is demanding; and our men and women are offering exceptional examples of the dedication, bravery, and professionalism of our entire joint forces. In the first 100 hours of the ground phase of Desert Storm, we moved a bit over 100 miles into Iraq. Yet as Secretary Rumsfeld mentioned, coalition troops moved over 200 miles into Iraq during Operation Iraqi Freedom in the first 36 hours. That is about twice as far in less than half the time. I must also point out that our Special Operations teams throughout the country, in cooperation with U.S. Government agency assets and our coalition partners, have done an incredible and largely unrecognized job. Clearly, the unrecognized part is for operational security reasons.

FUNDING THE WAR ON TERRORISM

We are additionally engaged in a global war on terror in the Philippines, in Georgia, in Yemen, and the Horn of Africa, and we are still fighting remnants of al Qaeda and Taliban in Afghanistan. The global war on terror is in fact global in scope and in nature. All of our Nation's soldiers, sailors, airmen, marines and Coast Guardsmen, as well as our Department of Defense civilians and coalition partners, have performed exceptionally well.

But this effort, protecting America in our new and challenging strategic environment, has generated significant costs. American and British people have born the tragic price of casualties in battle, and we grieve with the families of these heroes. We will not forget them or their sacrifice, and they are a reminder of the best our country and Britain have to offer.

There is no doubt that we will succeed in disarming Iraq. We will remove their weapons of mass destruction. We will remove their thugish leader and we will lift the people of Iraq from under the boot of their oppressor. We must recognize, though it pales in personal importance, that we have borne steep monetary expenditures fighting the war on terror and prosecuting the campaign in Iraq. As we meet here today, our Nation's military forces are in need of prompt and full passage of the President's supplemental request. And I appreciate the comments, Chairman Young and Chairman Lewis, that you just made in that regard.

NEED FOR SUPPLEMENTAL APPROPRIATIONS

The Department cannot absorb the more than $62 billion in incremental costs the war on terror has demanded. In fact, as the Secretary said, the four military services will soon exhaust borrowing from their fourth quarter operations and maintenance and personnel accounts. Without prompt passage of the supplemental appropriations, most of the services' funds in those accounts will run out. Prompt action is needed to sustain our troops in the field, and it is as important to ensure that those in training here at home have the best possible support to accomplish their vital task of providing for the common defense today and tomorrow.

If the full request is not appropriated, shortfalls will cause a severe curtailment of training, maintenance, and other funding from later in the fiscal year. This would undoubtedly reduce the readiness and morale of our hardworking and hard-fighting men and women. It would reduce the Defense Department's efforts to fight the global war on terrorism. Indeed, prompt funding will further demonstrate to our men and women that they have the full and unwavering support of the people of the United States.

While we have troops in combat, the importance of our support from home cannot be overstated. It is up to us to show them that

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