Hearing of the State, Foreign Operations and Related Programs Subcommittee of the House Appropriations Committee - The Emergency Supplemental Request for Iraq and Afghanistan

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REP. BETTY MCCOLLUM (D-MN): Thank you, Madame Chair.

Ambassador, I want to follow up on something -- a conversation I started with Director Fore at our hearing last Wednesday. Food prices are spiking around the world. They're threatening millions of families in poor and middle-class countries with hunger. And as I said, I raised this last Wednesday at our hearing. And I asked the director what her plan was. In short, her plan was, she was concerned about hunger, I believe sincerely so, but that was the plan, concern.

Three days later there was a story in The Washington Post, and it exposed the plan to -- at USAID to significantly scale back emergency food aid to some of the world's poorest countries this year because of soaring global food prices. It said USAID is drafting plans to reduce the number of recipient nations, reduce the amount of food provided for those countries, or both. Apparently, 41 percent surge in commodity prices in the past six months has generated a $120 million shortfall, which will rise to 200 million by the year end. This week, the head of the World Food Programme announced her organization would have a $500 million shortfall in the 2008 budget and will be forced to cut back on services unless additional funding is committed.

Rising food prices are creating a crisis that would threaten the stability of many countries, one of those countries being Afghanistan. This kind of unforeseen emergency can be justified in a supplemental request, but the request -- this request only includes $350 million for public law 480, originally budgeted last year. Yet more are going hungry and $350 million buys much less food today than it did last year.

So my question to you, sir: Why isn't there additional funding in the supplemental for the food crisis program, especially when we know Afghanistan is one of the countries involved? And what additional -- do you know what additional countries are going to require food aid, and can you submit to this committee what countries will be cut if additional aid isn't granted?

So, in general, what is the administration's plan to address this growing crisis of hunger?

Thank you.

MR. NEGROPONTE: Well, first of all, Congresswoman, I couldn't agree with you more that we are -- our assistance programs are under pressure because of these increased commodity prices. I think I said in my testimony 41 percent. I think the price of wheat went up 25 percent just on one day last week or the week before. So this is causing problems. It's causing problems in a number of countries where there are -- there have been political disturbances. I think that one of the most recent examples is in the country of Cameroon, where they've had unrest because of rising prices of commodities.

We do have the $350 million in the supplemental for food under the PL 480, so at the very least I would urge that that be approved. I recognize it's another subcommittee. I think that we have to be open to the possibility that there are increased needs here that will have to be addressed.

Another point I would make is that we've asked the Congress for the ability in some instances to purchase food locally in areas of need, which could help stretch our dollar further in those instances.

As to the specific questions of which countries we think are likely to be the most effected, I think I would have to get back to you on that.

REP. MCCOLLUM: Madame Chair, there's just a few -- it's yellow, so I just want to point out, I'm going to submit for the record The Washington Post article. But in that article, I read to it, the U.N. program is confounding price pressures, and in the paragraph it says: Need is increasing in Afghanistan. For instance, recently put up an emergency request for $77 million to cope with the skyrocketing prices.

So Madame Chair, I think we're going to have to look at this very carefully because Afghanistan, as we can see by the amount that's currently being budgeted, could consume a large portion of this leaving many other countries to be cut.

Thank you so much, and I look forward to seeing your full response.

Thank you, sir.

REP. LOWEY: I thank the gentlewoman for bringing that issue to our attention. We certainly can work with Chairwoman DeLauro in addressing this issue, and I thank you very much.

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