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S. HRG. 103-307 CURRENT DEVELOPMENTS IN THE MIDDLE EAST 4. F 76/2: S. HRG. 103-307 rrent Developnents in the Hiddle.. HEARING BEFORE THE SUBCOMMITTEE ON NEAR EASTERN AND SOUTH ASIAN AFFAIRS OF THE COMMITTEE ON FOREIGN RELATIONS UNITED STATES SENATE ONE HUNDRED THIRD CONGRESS FIRST SESSION OCTOBER 15, 1993 Printed for the use ofthe Committee on Foreign Relations '••., *C»tT nfi&ii, •'''<^ U.S. GOVERNMENT PRINTING OFFICE 73-438cc WASHINGTON : 1993 ForsalebytheU.S.GovernmentPrintingOffice SuperintendentofDocuments.CongressionalSalesOffice.Washington,DC 20402 ISBN 0-16-043286-3 S. Hrg. 103-307 CURRENT DEVELOPMENTS IN THE MIDDLE EAST .F 76/2: S. HRG. 103-307 »nt Developnents in the Riddle... HEARING BEFORE THE SUBCOMMITTEE ON NEAR EASTERN AND SOUTH ASIAN AFFAIRS OF THE COMMITTEE ON FOREIGN RELATIONS UNITED STATES SENATE ONE HUNDRED THIRD CONGRESS FIRST SESSION OCTOBER 15, 1993 Printed for the use of the Committee on Foreign Relations U.S. GOVERNMENT PRINTING OFFICE 73-438cc WASHINGTON : 1993 ForsalebytheU.S.GovernmentPrintingOffice SuperintendentofDocuments,CongressionalSalesOffice.Washington.DC 20402 ISBN 0-16-043286-3 COMMITTEE ON FOREIGN RELATIONS CLAIBORNE PELL, Rhode Island, Chairman JOSEPH R. BIDEN, Jr., Delaware JESSE HELMS, North Carolina PAUL S. SARBANES, Maryland RICHARD G. LUGAR, Indiana CHRISTOPHERJ. DODD, Connecticut NANCY L. KASSEBAUM, Kansas JOHN F. KERRY, Massachusetts LARRY PRESSLER, South Dakota PAUL SIMON, Illinois FRANK H. MURKOWSKI, Alaska DANIEL P. MOYNIHAN, New York HANK BROWN, Colorado CHARLES S. ROBB, Virginia JAMES M. JEFFORDS, Vermont HARRIS WOFFORD, Pennsylvania PAUL COVERDELL, Georgia RUSSELL D. FEINGOLD, Wisconsin JUDD GREGG, New Hampshire HARLAN MATHEWS, Tennessee GERYLD B. CHRISTIANSON, StaffDirector JAMES W. NANCE, Minority StaffDirector Subcommittee on Near Eastern and South Asian Affairs DANIEL P. MOYNIHAN, New York, Chairman CLAIBORNE PELL, Rhode Island HANK BROWN, Colorado PAUL S. SARBANES, Maryland LARRY PRESSLER, South Dakota CHARLES S. ROBB, Virginia JAMES M. JEFFORDS, Vermont HARRIS WOFFORD, Pennsylvania PAUL COVERDELL, Georgia HARLAN MATHEWS. Tennessee JUDD GREGG, New Hampshire (ID j CONTENTS Page Djerejian, Edward P.,Assistant SecretaryofState forNearEastern Affairs .... 1 Prepared statement 8 (III) CURRENT DEVELOPMENTS IN THE MIDDLE EAST FRIDAY, OCTOBER 15, 1993 U.S. Senate, Subcommittee on Near Eastern and South Asian Affairs of the Committee on Foreign Relations, Washington, D.C. The subcommittee met, pursuant to notice, at 10:51 a.m. in room SD-419, Dirksen Senate Office Building, Hon. Daniel P. Moynihan (chairman ofthe subcommittee) presiding. Present: Senators Moynihan and Sarbanes. Senator Moynihan. Will Secretary Djerejian come forward, please? Good morning, sir. The purpose of this hearing is simply to have an overview of what has been going on in the Middle East, of which I think we can say, without fear ofcontradiction, quite a bit. Mr. Secretary, you have a statement which you might want to pthreocreeecdorwdi.thW.eYowuoucladnlirkeeadtoitheoarrsfurmommaryiozueoint; wwheatwiilsl gpouitngitoin.n STATEMENT OF AMBASSADOR EDWARD P. DJEREJIAN, AS- SISTANT SECRETARY OF STATE FOR NEAR EASTERN AF- FADtS Ambassador Djerejian. Thank you very much, Mr. Chairman. Thank you for giving me this opportunity to appear before the Senate Foreign Relations Committee, and particularly in this pro- pitious moment in the search for Middle East peace. My testimony today will focus on the recent dramatic development on the bilateral side ofthe peace process, touch briefly on the multilateral negotiations Senator Moynihan. Sir, could I ask if you might bring your microphone a little closer? The people in back will have difficulty hearingyou. Ambassador Djerejian. Certainly. Is that good? Senator Moynihan. Fine. Ambassador Djerejian. Then I would like to describe our thoughts about the next steps in the peace process, Mr. Chairman, and then I will be happy after that to take whatever questions you and the distinguished members of the committee wish to pose to me. Barely a month ago, on the south lawn of the White House, a new era in Middle East politics took shape: An era that, as Presi- dent Clinton noted, gives the children of the Middle East a chance (1) to know a season ofpeace. The President made clear that he want- ed to move quickly to help turn the historic agreement into reality. Together with our Russian cosponsors, we organized on October 1, the Conference to Support Middle East Peace. It was no small success, Mr. Chairman. Forty-six countries and international orga- nizations gathered, to send the message that the peace talks must not fail. They agreed on the importance ofbuttressing the Declara- tion ofPrinciples, by offering the Palestinians the material benefits ofpeace. We all know that it is essential for the Palestinians to see soon that their daily lives are taking a turn for the better, and that peace makes a difference. The conferees reconfirmed their commit- ment to improve, immediately, the conditions of daily life for the Palestinians; and, at the same time, to build a structure for long- term economic growth. To meet these objectives, conference participants pledged over $600 million in aid for the first year, covered by the Declaration ofPrinciples, and $1 billion for the first 2 years. For the 5-year period covered by the agreement, pledges of support approached $2 billion. Several countries made pledges for only the first year or two. If their contributions for later years match their pledge for the first 2 years, the total donors' support willjump to $2.4 billion; which meets World Bank estimates for the Palestinians' needs. Let me add that our 5-year contribution to this effort, as you know, Sen- ator, is $500 million. The conference results were superb, but much remains to be done. For the donors, the first task is to put in place the structure agreed to at the conference, for disbursing the aid. Within the Ma- drid framework, overall coordination among the major donors will take place in an ad hoc Liaison Committee. This committee will be run at the sub-Cabinet level, and should meet every 3 to 6 months. It will work to ensure coordination and cooperation amongst the donors. The members will include the United States, Russia, Japan, Canada, the EC and Saudi Arabia. Israel, the Palestinians, Egypt and Jordan will participate as asso- ciate members. The World Bank will also play a leading role in this process. It will establish and manage a trust fund to finance technical assistance, training and feasibility studies. These efforts are designed to assist the Palestinians in creating institutions that will help them to manage their own political, economic and humanitarian affairs. United Nations' agencies, including the UNDP, will provide both technical and financial assistance to support this effort. The World Bank will also take the lead in developing programs to support public investment in the West Bank and the Gaza Strip. And it will serve as a Secretariat for the ad hoc Liaison Committee. Senator Moynihan. That is a new role for the World Bank, is it not? Ambassador Djerejian. I believe it is, sir. Now, there is an important role concomitantly for the private sector in promoting economic growth in the West Bank and Gaza; and we attach much importance to the private sector role. The Pal- estinians understand the need to create a business-friendly envi- ronment. Conference participants intend to encourage private investment, through export financing programs and investment in- centives. Part of the U.S. assistance package includes $125 million in OPIC investment guarantees. I would like to underscore one point here, Mr. Chairman. In put- ting together this aid package and working on its implementation, we have sought to ensure that it is managed efficiently; that there is transparency and accountability, so that the recipients will reap its full benefits. We will be working in close consultation with other donors, the World Bank and other institutions, to achieve this goal. In these tight budget times, we must do no less; and I am sure you will be reminding us ofthat. On the Israeli-Palestinian talks, through the donors' conference, the international community is doing its part on behalf of Israeli- Palestinian peace. But we must keep our eye on the ball. The major responsibility for advancing the peace process remains with the parties themselves. The Declaration of Principles established an ambitious set of objectives, toward which Israel and the Palestinians must work. Prime Minister Rabin and Chairman Arafat did not waste time, taking up this work in an October 6 meeting in Cairo. On October 13, the day the Declaration entered into force, Israeli Foreign Min- ister Peres and Abu Mazen ofthe PLO convened the first meeting ofthe Joint Israeli-Palestinian Liaison Committee in Cairo. That meeting got the Liaison Committee offto an excellent start. The Gaza-Jericho and military committees also began their delib- erations on the same date, October 13, in Taba. There, too, the dis- cussions proved to be pragmatic and focused. The two sides have also established an Israeli-Palestinian Con- tinuing Committee for Economic Cooperation, to considerjoint ven- tures in such areas as water, electricity and trade promotion. Nego- tiations on a detailed plan for the transfer of authority in education, culture, health, social welfare, direct taxation and tourism will take place in yet another forum here in Washington. I would like to give you a bit of the timeline, Mr. Chairman and Senator Sarbanes. The Declaration also calls for, by December 13: concluding the agreement on Israeli withdrawal from Gaza and Jericho, and beginning the withdrawal; By April 13, completing the Israeli withdrawal from Gaza and Jericho; transferring to the Palestinians, authority for education, culture, health, social welfare, direct taxation and tourism; starting the clock on the 5-year transitional period; and starting to build the Palestinian police force. By July 13, establishing a Palestinian police force; completing IDF redeployment in the West Bank and Gaza, outside of popu- lated areas; as a goal, holding general elections for the Palestinian Interim Self-Governing Authority Council. Let me turn to the other bilateral tracks. The Israeli-Palestinian Declaration of Principles was, of course, a historic breakthrough. We ess. eWxepehcatevde intottobeseenrvedisaasppaoicnatteadl.yst elsewhere in the peace proc- The day after the signing ofthe Declaration ofPrinciples, the Is- raelis and the Jordanians initialed a substantive agenda for their negotiations. This agenda codifies the progress made thus far in their talks, and provides the framework for further discussion. October 1, the day ofthe donors' conference, Israeli-Jordanian relations took an even more significant step forward. The Jordanian Crown Price Hassan and Israeli Foreign Minister Peres appeared with President Clinton at the White House, to announce the cre- ation ofajoint economic committee. It was also agreed at that time to create a trilateral United States-Israeli-Jordanian working group, to look at next steps for economic development in the two Middle Eastern countries, and how their economic interaction can be related to the Palestinian di- mension. Whereas the Palestinian issue represents the political care ofthe Arab-Israeli conflict, the Israeli-Syrian negotiations represent the geopolitical or strategic core ofthat conflict. Therefore, in our view, it is essential that every effort be made to encourage tangible progress in the Israeli-Syrian track. While the parties continue to differ over key questions, such as land, peace and security, they remain committed to these negotiations with the aim of reaching agreement on their own Declaration ofprinciples. The two sides have sought, and welcomed, active U.S. assistance in the talks. President Clinton and Secretary Chris- topher have been actively involved in helping move this track forward. The President has communicated directly with Syrian President Hafaz al-Assad; and Secretary Christopher has been asked by both Prime Minister Rabin and President Assad to be an active intermediary, to help the two sides narrow their substantive dif- ferences, especially on the key issues ofwithdrawal and peace. The administration is determined to do its part, Mr. Chairman. We rec- ognize that much hard work lies ahead. Lebanon and Israel are continuing in their effort to reach agreement on a political frame of reference, dealing with the key issues ofland, peace and security; which could then enable them to establish a military committee, to discuss the pressing issue of security, especially in southern Lebanon. It is worth noting that those negotiations continued, in spite of the violence on the ground last sum- mer. We are in close contact with both the Israeli and Lebanese, to help facilitate forward movement in the talks; and President Clin- ton and Secretary Christopher had an extensive discussion on the issue with Lebanese Prime Minister Hariri in New York at the UNGA meetings earlier this month. Senator Moynihan. Mr. Secretary. Do we have to say, "UNGA"? Ambassador Djerejian. The United Nations General Assembly. Senator Moynihan. There you go. Ambassador Djerejian. You know, you will be amused, Mr. Chairman. Once I was, I used an acronym with a foreign minister in the Middle East. And he looked at me and he said, "You know, I am always bemused by you Americans, resorting always to acro- nyms." It is a trait.