FY 1988 assistance requests for the Middle East and South Asia - statement by Richard W. Murphy before the Subcommittee on Near Eastern and South Asian Affairs of the Senate Foreign Relations Committee on Mar. 23, 1987

US Department of State Bulletin, May, 1987

FY 1988 Assistance Requests for the Middle East and South Asia

Statement before the Subcommittee on Near Eastern and South Asian Affairs of the Senate Foreign Relations Committee on March 23, 1987. Ambassador Murphy is Assistant Secretary for Near Eastern and South Asian Affairs.1

I welcome this opportunity to meet withyou today and to support the Administration's proposals for FY 1988 economic and security assistance for the Middle East and South Asia. Foreign assistance has become an integral part of our policy, to defend and advance our own national interests and to help others less fortunate. Several weeks ago Secretary Shultz said, "We do not seek foreign assistance solely for the benefit of others; we are pursuing our own national security and economic interest when we work with our friends and allies around the world.' Nowhere is this more true than in the Near East and South Asia region where a number of our vital security and economic interests converge.

The Middle East and South Asia is aregion in great turmoil. Today there are five regional conflicts that threaten stability in the area. These include the Arab-Israeli dispute, the Iran-Iraq war, the Soviet occupation of Afghanistan, the west Saharan conflict, and Libya's invasion of Chad. Tension along the border between North and South Yemen and internal strife in Sri Lanka and Lebanon further endanger regional order. The Middle East and South Asia is also a region where economic strains and social change create pressures on stability. The United States has no illusion that our security assistance alone could resolve these conflicts and strains or fully protect key U.S. interests. Our aid is designed carefully to assist those friends who share our concerns. By aiding friends with economic and military financing to better protect themselves, we are enhancing our own security.

This committee is well aware thatour deficit situation and need to reduce the budget last year required deep cuts into programs important to many Americans. These cuts were painful. We in no way wish to minimize the pain of reductions in domestic programs. But we have a strong case for maintaining foreign assistance at sufficient levels required to protect U.S. economic and defense interests in this troubled region. Last year Congress reduced worldwide foreign assistance by 17%, while nonearmarked accounts in the Near East and South Asia region were cut by 25%. Cuts of this magnitude have strained our bilateral relations and harmed our security programs. Our FY 1988 proposal for Near Eastern and South Asian programs is 2% below that of last year's request. We urge this committee to support the figures we have requested-- with a keen eye to U.S. national economic and security interests in the region.

The Middle East

Several vital U.S. interests--strategic,political, and economic--converge in the Middle East region. First and foremost, we are working to foster stability in a region of great strategic importance to the United States. We encourage a just and lasting resolution of the Arab-Israeli dispute. Our foreign assistance programs support this commitment. Closely related to this, we have attempted to assure the security and prosperity of our friends in the region. Their military and economic security must be dealt with in a generous and consistent manner if they are to participate fully in the peace process. Our assistance programs play a key role in our relations with friendly, pro-Western Arab nations, many of which are threatened by foes of the peace process and must maintain the means to defend themselves.

The economies of Middle East oilproducers and nonproducers alike have undergone setbacks over the past year-- lower revenues from oil exports, reduced worker remittances, and a drop in revenues from tourism as a result of terrorist threats. Many of our friends in the region suffer from the after-effects of economic contraction in the gulf states. We are concerned about continued economic deterioration and the effect this could have on political stability and on prospects for peace.

Our foreign assistance programsplay an essential role in helping to support friendly states which share our interest in and commitment to economic and political stability. As noted above, last year, these non-earmarked country accounts had to be reduced by 25% as the foreign assistance budget declined. We have before us now a budget we cannot afford to reduce further unless we are also prepared to sacrifice important national interests.

Israel. The United States and Israelhave a unique and rich relationship based on many shared values and interests. During this Administration, our relations have grown stronger as we have forged institutional links such as the Joint Political-Military Group, the Joint Security Assistance Program, and the Joint Economic Development Group. These institutions reinforce our traditional ties, which we are confident will continue to be close and strong.