Answer. The $63.5 million was necessary to address emergent requirements for training and equipping the Free Iraqi Forces. The $150 million is needed to support indigenous forces that assist U.S. military forces in carrying out military operations or activities, including those in furtherance of the global war on terrorism, and activities necessary to prepare for participation in active military operations.

Question. Authorized the President to use each fiscal year up to $50 million in Cooperative Threat Reduction funds outside the states of the former Soviet Union, including Iraq. Existing law limits the use of such funds to the states of the former Soviet Union.

Answer. This legislative proposal would authorize the President to use up to $50 million each fiscal year in Cooperative Threat Reduction funds outside the states of the former Soviet Union, including Iraq, if the President determines such funds would assist the United States in resolving critical emerging proliferation threats or otherwise would permit the United States to take advantage of opportunities or requirements, including those related to the Global War on Terrorism, to achieve long-standing nonproliferation goals. Existing law limits the use of such funds to the states of the former Soviet Union. The provision would allow the President to provide equipment, goods, and services for a project or activity. To the extent possible, such assistance will be provided to the recipient states pursuant to international agreements with terms similar to those in existing international agreements concerning the provision of Cooperative Threat Reduction assistance to states of the former Soviet Union.

[CLERK'S NOTE.-End of questions submitted by Mr. Lewis.]

TUESDAY, SEPTEMBER 30, 2003.

FISCAL YEAR 2004 SUPPLEMENTAL APPROPRIATIONS

FOR IRAQ AND AFGHANISTAN

WITNESSES

HON. DONALD H. RUMSFELD, SECRETARY OF DEFENSE

GENERAL RICHARD B. MYERS, CHAIRMAN, JOINT CHIEFS OF STAFF, UNITED STATES AIR FORCE

DOV ZAKHEIM, UNDER SECRETARY OF DEFENSE (COMPTROLLER)

INTRODUCTION

Mr. LEWIS. The Committee will come to order.

We would like to welcome today the Secretary of Defense, Donald H. Rumsfeld, General Richard B. Myers, Chairman of the Joint Chiefs of Staff and Dov Zakheim, Under Secretary of Defense (Comptroller).

This afternoon the Committee is holding an open hearing on the President's fiscal year 2004 request for supplemental appropriations on military operations and, most prominently, for activities in Iraq and Afghanistan.

Mr. Secretary, you may or may not know that I have just returned from a delegation trip to Iraq, some 17 members traveled along. It was a fabulous experience and exposure to the real world as it is out there. Within the mix, a number of our own delegation, our own subcommittee, were in the delegation. Norm Dicks was present, Henry Bonilla, Rodney Frelinghuysen, George Nethercutt, and Todd Tiahrt.

The significance of that experience, besides the fact that you just can't see it unless you really go there and talk to people involved in the midst of that operation, was that our membership, many of whom had questions how we got there, what we were doing or otherwise, had their questions answered, had an experience that caused them all to be very positive about the role America must play in this region, and indeed the reality that we cannot afford to lose the peace in Iraq.

I was very, very encouraged, and never have I been more proud to be a Member of Congress than to watch this wonderful team of members interact with people doing such great work. So it is our pleasure, Mr. Secretary, to welcome you and General Myers and your Comptroller, Dov Zakheim, to the Committee. Your statements in their entirety will be included in the record. We will get to questions as quickly as we can so we can put you on your way to work that is really worthwhile.

Mr. Secretary.

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SUMMARY STATEMENT OF SECRETARY RUMSFELD

Secretary RUMSFELD. Thank you very much, Mr. Chairman. I am delighted that you and your colleagues were able to visit Iraq and visit the troops. I know it is important for their morale and encouragement that members of the House and the Senate do that, and we have encouraged that to happen, and I thank you so much for taking the time to do it.

I appreciate this opportunity to testify on the President's emergency supplemental request.

Earlier this month, the American people marked the anniversary of the September 11th attacks. Thanks to the courage of the men and women in uniform, two nations and 46 million people have been rescued from tyranny. Thousands of terrorists have been captured or killed, and numerous planned attacks have been stopped, and terrorist assets have been seized and lives have been saved.

Each of the young men and women in uniform volunteered for service, and in the course of this war, a number have given their lives. Still others have suffered wounds. Certainly our hearts go out to the families of all those who have been injured or killed in this war, U.S., coalition, and increasingly, I would add, the Iraqi security forces that are now involved with the Iraqi Army, the police, the civil defense, site protection groups and border patrols.

We are grateful also for the brave soldiers and fine civilian staffs from coalition countries now serving in Iraq and Afghanistan and elsewhere in the global war on terror.

As a sign of his conviction that we, as you indicated, have to prosecute this war and defeat those who threaten us, the President has requested $87 billion in emergency funds to fight the war on terror. The vast majority of needed funds will go for troops who are risking their lives in the struggle.

FUNDS FOR MILITARY OPERATIONS

Of the $87 billion in the request, $66 billion is to support ongoing military operations. The President has requested $51 billion for military operations in Iraq, $11 billion for military operations in Afghanistan, the Horn of Africa and other Operation Enduring Freedom Missions.

So, $66 billion of the $87 billion of this request is really to support the troops, and they need it. The remaining $21 billion is to help in Afghanistan and Iraq to secure their nations for freedom, to get on a path of stability, self-government and reliance, self-reli

ance.

FUNDS FOR AFGHANISTAN

For Afghanistan, the request is for $400 million to train and support the Afghan National Army, which I should add is doing an increasingly good job. They are working with our forces on the ground and getting high praise from everybody, to support the national police, Border Patrol and the highway patrol. $120 million is to train, demobilize militia and help them find jobs and other private sector initiatives. $300 million for roads, schools and clinics, and nearly $300 million to help support the rule of law elections and other critical support for the Afghan nation government.

FUNDS FOR IRAQ

The President has also requested $20 billion for the Coalition Provisional Authority in Iraq, $15 billion to speed repairs to Iraq's starved, and as I am sure you observed, dilapidated infrastructure, and $5 billion to help Iraqis assume responsibility for the security of their country.

The $20 billion that the President requested does not cover all of Iraq's needs, which are far greater, nor is it intended to. We expect the international community to step up with additional contributions as well and the hope and intention is over the coming years the bulk of funds for Iraq's reconstruction will come from Iraqis themselves, from oil revenues, from recovered assets, from international trade and foreign and direct investment.

The funds the President requested are designed to help Iraqis so they can generate the income and provide the security necessary for them to rebuild their own country.

Take oil, for example. Ambassador Bremer testified that Iraq will earn about $2.5 billion in oil revenues in 2003. That is an estimate. A substantial sum, considering the dilapidated conditions of its infrastructure. With improvements to that infrastructure, he estimates that Iraq's oil revenues should grow to as much as $12 billion next year and as much as $20 billion by 2005. Recently, Iraq's finance minister announced sweeping reforms of their tax and foreign investment laws.

To attract foreign investment into Iraq, they must have more than just attractive tax and investment laws. They have to have reasonable security environment. That is why the President requested $5 billion to train Iraqis to help defend their own country. It includes $2 billion for public safety, including training of an additional 40,000 police in the next 18 months, $2 billion to train a new three division Iraqi Army and an Iraqi civil defense corps, and almost $1 billion for the Iraqi justice system.

The funds for DoD and the $20 billion for the Coalition Provisional Authority are linked tightly. Both are needed. The requested CPA investments are needed for the work that General Abizaid, General Sanchez and their troops are engaged in.

The investments the President is requesting are, in a very real sense, a critical element of the coalition's exit strategy. The sooner the Iraqi's can defend their own people, the sooner the U.S. and coalition forces can come home. Reaching our goals requires investments to improve critical infrastructure and basic services necessary to jump-start their economy.

Iraq cannot make those improvements today without assistance from others, us and the international community. The purpose is to help them get on a path where they can rebuild their own country. That is why the President requested the $20 billion be granted, and not loaned. Iraq is a nation with considerable economic potential, but it also has substantial debt, and certainly it is in no position, given its circumstances, to take on additional debts. If we want to encourage Iraqi self-reliance so they can fund the reconstruction and so U.S. and coalition forces can turn over the security tasks to the Iraqis and come home, it would not be helpful to saddle Iraq with more debt.

The President has requested the $20 billion investment in the future of Iraq. To put that in context, the Marshall Plan, after World War II, cost roughly $90 billion in today's dollars. Those investments helped transform a region that has been a source of violent war and instability for centuries and turn it into a place of peace, prosperity and mutually beneficial trade.

PROGRESS IN IRAQ AND AFGHANISTAN

I recently returned, as you did, from Iraq and also Afghanistan. If you saw what I saw, you saw that progress is being achieved in both countries. Afghanistan is on the road to democracy and selfgovernment. After 2 years of training, the Afghan National Army has been fighting side-by-side with coalition forces in our most recent anti-terrorist campaigns. The central government is working to extend authority to the provinces. Together with the Afghan Authority, the coalition has deployed Provisional Reconstruction Teams, or PRTS, to four provinces, with four more on the way. Afghanistan faces challenges, to be sure, but progress has been measurable.

In Iraq, the coalition forces also face difficulties and dangers, let there be no doubt, including the threats from regime remnants, criminals and foreign fighters who come into the country to oppose the coalition.

What is remarkable is that despite the dangers, the coalition civil and military staff in Iraq has, in less than 5 months, I guess it is 5 months tomorrow since the major combat operations ended, racked up a series of achievements in both the security and the civil sides that may be without precedent.

Consider a few accomplishments. In less than 5 months, virtually all major Iraqi hospitals and universities have been reopened. Hundreds of secondary schools, until a few months ago, often used as weapons caches, they have been rebuilt and are ready to start the fall semester. 56,000 Iraqis have been armed and trained and they are contributing to the security and defense of their country. Another 14,000 have been recruited and are currently in training, for a total of 70,000, from zero on May 1 at the end of combat operations.

Today, a new Iraqi Army is being trained and more than 40,000 Iraqi police are conducting joint patrols with coalition forces. By contrast, it took 14 months to establish a police force in post-war Germany and 10 years to begin training a new German army.

The Independent Iraqi Central Bank was established and a new currency announced in just 2 months, accomplishments that took 3 years in post-war Germany. The Iraqi Governing Council has appointed an Iraqi Cabinet of Ministers, something that took 14 months in Germany. In all major cities and most towns and villages, Iraqi Municipal Councils have been formed, something that took 8 months in Germany. 100 percent of the Iraqi people today are living under representative councils, either at the village, town, city or provincial level.

COALITION SUPPORT

All this and more has taken place in just 5 months. It may be without parallel, whether compared to Japan, to Germany, to Bos