Andean Counterdrug Initiative (ACI) and Related Funding Programs: FY2007 Assistance

Andean Counterdrug Initiative (ACI) and Related
Funding Programs: FY2007 Assistance
Updated August 30, 2007
Connie Veillette
Specialist in Foreign Assistance
Foreign Affairs, Defense, and Trade Division



Andean Counterdrug Initiative (ACI) and Related
Funding Programs: FY2007 Assistance
Summary
In February 2007, the 110th Congress finished consideration of FY2007 foreign
operations appropriations legislation, held over from 2006, that provided foreign
assistance to the Andean region. In addition to the Andean Counterdrug Initiative
(ACI), Andean countries benefit from Foreign Military Financing (FMF),
International Military Education and Training (IMET) funds, and other types of
economic aid. Congress continued to express concern with the volume of drugs
readily available in the United States and elsewhere in the world. The three largest
producers of cocaine are Colombia, Bolivia, and Peru. Ninety percent of the cocaine
in the United States originates in, or passes through, Colombia.
The United States has made a significant commitment of funds and material
support to help Colombia and the Andean region fight drug trafficking since the
development of Plan Colombia in 1999. From FY2000 through FY2007, the United
States provided a total of about $5.7 billion for the region in ACI funds. The United
States also provides funding for Development Assistance (DA), Child Survival and
Health (CSH), and Economic Support Funds (ESF) to some countries in the region.
The Defense Department maintains a central counternarcotics account that funds
activities in Latin America. Since 2002, Congress has granted expanded authority
to use counternarcotics funds for a unified campaign to fight both drug trafficking
and terrorist organizations in Colombia. Three illegally armed groups in Colombia
that participate in drug production and trafficking have been designated foreign
terrorist organizations by the State Department. In 2004, Congress also increased the
level of U.S. military and civilian contractor personnel allowed to be deployed in
Colombia, in response to an Administration request.
The FY2007 budget request, submitted to Congress on February 6, 2006,
included a total of $721.5 million for ACI, an amount Congress approved in a
continuing resolution. Congress did not complete work on the Foreign Operations
bill in 2006, instead passing three continuing resolutions to maintain funding into

2007. The final bill, the FY2007 Continuing Resolution (H.J.Res. 20/P.L. 109-289,


as amended by P.L. 110-5) was passed on February 15, 2007.
For FY2006, Congress approved the Administration’s request for $734.5 million
in the Foreign Operations Appropriations Act (H.R. 3057/P.L. 109-102), although
a 1% across-the-board rescission reduced it to $727.2 million.



Contents
Andean Counterdrug Initiative........................................2
FY2007 Funding Request.......................................3
Foreign Military Financing (FMF).................................5
International Military Education and Training (IMET).................5
Defense Department Counternarcotics Account......................6
U.S. Counternarcotics Assistance by Country............................6
Colombia ....................................................6
Peru ........................................................8
Bolivia ......................................................9
Ecuador ....................................................10
Brazil ......................................................11
Venezuela ...................................................12
Panama .....................................................13
Congressional Conditions on Assistance...............................14
Expanded Authority...........................................14
Personnel Caps...............................................14
Helicopters ..................................................14
Reports .....................................................14
Colombian Human Rights......................................15
Aerial Fumigation............................................16
Prohibition on Participation in Combat Operations...................16
Bolivian Human Rights........................................16
Demobilization of Illegally Armed Groups in Colombia..............17
Major Legislative Activity in the 109th Congress, Second Session, and
110th Congress, First Session....................................17
FY2007 Foreign Operations Appropriations........................17
House Action............................................17
Senate Action............................................18
FY2006 Supplemental Appropriations............................19
FY2007 John Warner National Defense Authorization Act............19
Major Legislative Activity in the 109th Congress, First Session.............19
FY2006 Foreign Operations Appropriations........................19
Foreign Relations Authorization Act, FY2006 and FY2007............20
National Defense Authorization Act, FY2006.......................20
Appendix A. Map................................................21
List of Tables
Table 1. Andean Counterdrug Initiative, FY2007Administration Request.....3
Table 2. FY2006 and FY2007 ACI Funding Estimates ....................4
Table 3. U.S. Counternarcotics Assistance to Colombia, FY2000-FY2007.....7
Table 4. U.S. Counternarcotics Assistance to Peru, FY2000-FY2007.........8



Table 6. U.S. Counternarcotics Assistance to Ecuador, FY2000-FY2007.....10
Table 7. U.S. Counternarcotics Assistance to Brazil, FY2000-FY2007.......11
Table 8. U.S. Counternarcotics Assistance to Venezuela, FY2000-FY2007...12
Table 9. U.S. Counternarcotics Assistance to Panama, FY2000-FY2007.....13



Andean Counterdrug Initiative (ACI) and
Related Funding Programs:
FY2007 Assistance
In 2006 and early 2007, Congress considered a number of issues relating to the
Andean Counterdrug Initiative, the U.S. assistance program to help Colombia and its
neighbors address drug trafficking and economic development issues.1 These issues
included ongoing concerns with the effectiveness of the program, funding levels,
human rights, and the future of the program. The region has been viewed as
particularly important because it produces virtually all of the world’s cocaine and
increasing amounts of high quality heroin. It is estimated that 90% of the cocaine
coming to the United States originates in, or passes through, Colombia. Moreover,
the stability of Colombia and the region is threatened by Colombia’s longstanding
leftist guerrilla insurgency and rightist paramilitary groups, which are believed to be
largely funded by their participation in illegal narcotics production and trafficking.
The Andean Counterdrug Initiative is the primary U.S. program that supports
Plan Colombia, a six year plan developed in 1999 by President Andres Pastrana
(1998-2002) of Colombia, and continued by current President Alvaro Uribe. The six-
year plan has ostensibly ended, although the same level and types of activities are
continuing. The Colombian government has reportedly developed a follow-on plan,
Plan Colombia Consolidation Phase (PCCP), that would include support for the
demobilization of rightist paramilitary groups.
Although ACI is the primary program, it is not the only one supporting
counternarcotics and economic development in the Andean region. Countries in the
region also receive Foreign Military Financing (FMF) and International Military
Education and Training (IMET). The Department of Defense supports drug
interdiction operations from its own counternarcotics account. In addition, the
United States provides economic development aid from Development Assistance
(DA), Child Survival and Health (CSH), and Economic Support Funds (ESF)2
accounts. These programs are not considered part of the Andean Counterdrug
Initiative, although they support many programs which are tangentially related, such
as poverty reduction and infrastructure improvements.


1 For earlier action, see CRS Report RL32337, Andean Counterdrug Initiative (ACI) and
Related Funding Programs: FY2005 Assistance, and CRS Report RL33253, Andean
Counterdrug Initiative (ACI) and Related Funding Programs: FY2006 Assistance, both by
Connie Veillette.
2 For more information on economic development programs in Latin America, see CRS
Report RL32487, U.S. Foreign Assistance to Latin America and the Caribbean, coordinated
by Connie Veillette.

Andean Counterdrug Initiative
The Andean Counterdrug Initiative was designed to provide assistance to seven
countries in the broadly defined Andean region: Bolivia, Brazil, Colombia, Ecuador,
Panama, Peru, and Venezuela.3 The region is important to U.S. drug policy because
it includes three major drug producing countries (Colombia, Bolivia, and Peru) where
virtually all the world’s cocaine and significant quantities of high quality heroin
destined for the United States are produced. U.S. objectives for the ACI program are
to eliminate the cultivation and production of cocaine and opium, build law
enforcement infrastructure, arrest and prosecute traffickers, and seize their assets.
The region also includes two major oil producing countries (Venezuela and
Ecuador), members of the Organization of Petroleum Exporting Countries (OPEC),
which supply significant quantities of oil to the United States. For the five traditional
Andean countries (Colombia, Venezuela, Ecuador, Peru, and Bolivia), the Andes
mountain range that runs through South America poses geographical obstacles to
intra-state and inter-state integration, even though the countries are linked together
in the Andean Community economic integration pact.
U.S. support for Plan Colombia began in 2000, when Congress passed
legislation providing $1.3 billion in interdiction and development assistance (P.L.
106-246) for Colombia and six regional neighbors. Funding for ACI from FY2000
through FY2007 totals about $5.7 billion. ACI is managed by the State Department’s
Bureau of International Narcotics and Law Enforcement Affairs (INL). Some ACI
funds are transferred to the U.S. Agency for International Development (USAID) for
alternative development programs.
ACI funds are divided between programs that support eradication or interdiction
efforts and those focused on alternative crop development and democratic institution
building. On the interdiction side, programs train and support national police and
military forces, provide communications and intelligence systems, support the
maintenance and operations of host country aerial eradication aircraft, and improve
infrastructure related to counternarcotics activities. On the alternative development
side, funds support development programs in coca growing areas, including
infrastructure development, and marketing and technical support for alternative
crops. They also support programs assisting internally displaced persons, promoting
the rule of law, and expanding judicial capabilities.
ACI also funds the Air Bridge Denial Program that is currently operational in
Colombia, and temporarily suspended in Peru, after an accidental shooting down of
a civilian aircraft carrying U.S. missionaries in 2001. After the incident, in which
two Americans died, the program in both countries was suspended until enhanced
safeguards were developed. The program in Colombia resumed in August 2003. The
program supports an aircraft fleet, pilot training, and logistical and intelligence
support. The program tracks aircraft suspected of being involved in drug trafficking,


3 Panama and Brazil are not considered Andean countries, but are included in ACI because
they each share borders with Colombia. Bolivia is an Andean country but does not share
a border with Colombia.

and forces them to land for inspection. If an aircraft is repeatedly unresponsive, it
may be shot down, at the direction of the commander of the Colombian Air Force.
The resumption of a program in Peru is still pending the development of safety
enhancements.
FY2007 Funding Request
The Administration requested a total of $721.5 million for FY2007 for the
Andean Counterdrug Initiative, a slight reduction from FY2006.4 Included as part
of the request was $65.7 million for a Critical Flight Safety (CFS) Program, a multi-
year effort to upgrade and refurbish State Department aircraft used for eradication
and interdiction missions. FY2006 was the first year for which funds were requested
for this function. Congress appropriated $30 million instead of the requested $40
million. In previous years, the Air Bridge Denial (ABD) Program was a separate
line item in the request and appropriation. This year, funding for the program is
included in the allocation for Colombia. In the two previous fiscal years, Congress
cut funding for ABD from its request of $21 million, providing $11 million in
FY2005 and $13.8 million in FY2006.
Table 1. Andean Counterdrug Initiative, FY2007Administration
Request
(in millions $)
CountryInterdictionAlt. Dev.Total
Colombia 313.85 151.15a 465.00
Peru 56.00 42.50 98.50
Bolivia 35.00 31.00 66.00
Brazil4.00 — 4.00
Ecuador 8.90 8.40 17.30
Panama4.00 — 4.00
Venezuela1.00 — 1.00
Air Bridge Denial b — — 0.00
Critical Flight Safety65.70 — 65.70
T otal 488.45 233.05 721.50
a. Alternative development includes $26.15 million for rule of law programs.
b. Air Bridge Denial funds are included in the request for Colombia in FY2007.


4 Although Congress appropriated $734.5 million for FY2006, a 1% rescission reduced the
amount to $727.2 million.

From year to year, the ACI allocation for Colombia has remained relatively
stable, and the FY2007 request was level with previous years. For FY2007, the
Administration proposed to fund the Air Bridge Denial from the Colombia
allocation, since the program is only operational there. The State Department
maintained that this will not result in less funding for other Colombia programs, as
previous costs related to critical flight safety were proposed to be funded in the CFS
program.
Table 2. FY2006 and FY2007 ACI Funding Estimates
(in millions $)
F Y 2006 F Y 2007 F Y 2007
Count ry Estimate Request Enacted
Colombia 464.78 465.00 465.00
Peru 106.92 98.50 103.17
Bolivia 79.20 66.00 66.00
Brazil 5.94 4.00 4.00
Ecuador 19.80 17.30 17.30
Panama 4.46 4.00 4.00
V e nezuela 2.23 1.00 1.00
Air Bridge Denial 13.86 — —
Critical Flight Safety29.9765.70 61.04
T otal 727.16 721.50 721.51
Related Funding Programs
Additional funding for the Andean region is provided through the Foreign
Military Financing (FMF) program and the International Military Education and
Training (IMET) program, both managed by the State Department. Recipients are
subject to an aid cutoff if they have not signed so-called Article 98 agreements with
the United States.5 Such agreements, referring to Article 98 of the Rome Treaty on
the International Criminal Court, prevent the International Criminal Court from
proceeding with a request for the surrender of U.S. personnel present in the country.
These agreements are required under the American Services Members Protection Act
of 2002, that was incorporated as Title II of H.R. 4775, the FY2002 Supplemental
Appropriations Act (P.L. 107-206).6 The President may waive the law if it is in the


5 The FY2007 Defense Authorization Act (H.R. 5122/P.L. 109-364) modified the law to end
the ban on IMET assistance, while maintaining FMF.
6 Since FY2005, Section 574 of Foreign Operations Appropriation acts extends the provision
(continued...)

national interest. Colombia, the major recipient of military assistance in Latin
America, has signed an agreement. Others, such as Bolivia, Brazil, Ecuador, Peru,
and Venezuela, have not signed an agreement, or have not ratified such an agreement,
and could see their assistance withheld. Counternarcotics funds are not affected. In
addition to State Department programs, the Defense Department has a
counternarcotics account for worldwide programs involving interdiction, training,
equipment, and intelligence sharing. In the Western Hemisphere, these programs are
managed by the U.S. Army Southern Command.
Foreign Military Financing (FMF)
Foreign Military Financing (FMF) provides funding grants to foreign nations to
purchase U.S. defense equipment, services, and training. The program’s objectives
are to assist key allies to improve their defense capabilities, to strengthen military
relationships between the United States and FMF recipients, and to promote the
professionalism of military forces in friendly countries. FMF is provided to
Colombia and the Andean region to support the efforts of those nations to establish
and strengthen national authority in remote areas that have been used by leftist
guerrilla organizations, rightist paramilitaries, and narcotics traffickers. A portion
of FMF funding in Fiscal Years 2002 and 2003 went for infrastructure protection of
oil pipelines in Colombia.
The FY2006 estimate for the Andean region is $90.1 million, with $89.1 million
for Colombia.The FY2007 request was $90.85 million for the region, with
Colombia proposed to receive $90 million, mainly to support Colombia’s efforts to
establish and strengthen national authority over remote areas that are used by
terrorists and that support narcotics trafficking. For FY2007, Congress provided
$86.35 million, with funds for Colombia trimmed to $85.5 million. Funds are to be
used to provide interdiction boats, additional combat aircraft, training and
infrastructure improvements, and maintenance and operation of the Colombian
military’s helicopter program. Funds are also to be used to support Colombia’s
interdiction capabilities, intelligence sharing, and communications.
International Military Education and Training (IMET)
The IMET program provides training on a grant basis to students from allied and
friendly nations. Its objectives are to improve defense capabilities, develop
professional and personal relationships between U.S. and foreign militaries, and
influence these forces in support of democratic governance. Training focuses on the
manner in which military organizations function under civilian control, civil-military
relations, military justice systems, military doctrine, strategic planning, and
operational procedures. IMET funding for the Andean region was estimated at $3.4
million in FY2006 out of a total of $13.4 million for all of Latin America. The
request for FY2007 for the Andean countries was $2.56 million out of a hemisphere-


6 (...continued)
of law to include Economic Support Funds. For more information, see CRS Report
RL33337, Article 98 Agreements and Sanctions on U.S. Foreign Aid to Latin America, by
Clare Ribando.

wide total $12.6 million. The request for Colombia was $1.68 million and would
focus on civil-military issues for junior and mid-grade military officers, with an
emphasis on human rights. Congress provided $2.46 million in IMET for the
Andean nations, with Colombia to receive $1.61 million.
Defense Department Counternarcotics Account
The Department of Defense has authority for counternarcotics detection and
monitoring under Sections 124, 1004, and 1033 of the National Defense
Authorization Act. DOD requests a lump sum for counternarcotics programs
worldwide and does not request amounts by country. The allocation for FY2005
DOD counternarcotics funding for Latin America was $366.9 million, of which up
to $200 million was for Colombia.
For FY2006, DOD requested a total of $896 million globally for
counternarcotics programs, of which it estimated spending $368 million in Latin
America. Of this amount, $122 million would be in direct support of Colombia.
Activities include detection and monitoring operations to assist U.S. law enforcement
agencies interdict drug trafficking. In the Andean region, support is provided in the
form of training, equipment, and intelligence sharing activities. Requested levels for
FY2007 were reportedly in the same range as FY2006.
U.S. Counternarcotics Assistance by Country
Colombia7
Colombia receives the single largest portion of ACI funds. For FY2007, the
Administration requested $465 million, of which $313.9 million would be for
interdiction and eradication efforts, $125 million for alternative development and
institution building programs, and $26.2 million for rule of law programs.
Interdiction funds would support the Colombian military’s aviation program and drug
units with training, logistics support, operating expenses, equipment, and to upgrade
forward operating locations. Assistance would also be used to support Colombian
National Police aviation, eradication and interdiction programs with equipment,
logistical support, training, new base construction, communications and information
links. Alternative development programs would support the introduction of new licit
crops, the development of agribusiness and forestry activities, and the development
of local and international markets for new products. Rule of law assistance would
help promote democracy through judicial reform, support for vulnerable groups, and
training and technical assistance for advisors in rule of law areas.
For FY2007, Congress provided the Administration’s request of $465 million.
It is not clear at this time how the funds will be allocated among alternative
development and interdiction activities. In the FY2006 Foreign Operations


7 For more information on Colombia, see CRS Report RL32250, Colombia: Issues for
Congress.

Appropriations Act, Congress provided a total of $469.5 million for Colombia,
divided among $310.9 million for interdiction, $131.2 million for alternative
development, and $27.4 million for rule of law programs. The amount for alternative
development represents a $6.5 million increase from FY2005 levels. Colombia also
receives small amounts of Non-proliferation, Anti-terrorism, Demining and Related
Programs (NADR), that in FY2007, would be used to address arms trafficking across
Colombian borders.
Colombia’s spacious and rugged territory, whose western half is transversed by
three parallel mountain ranges, provides ample isolated terrain for drug cultivation
and processing, and contributes to the government’s difficulty in exerting control
throughout the nation. The country is known for a long tradition of democracy, but
also for continuing violence, including a guerrilla insurgency dating back to the
1960s, and persistent drug trafficking activity. Recent administrations have had to
deal with a complicated mix of leftist guerrillas, rightist paramilitaries (or “self-
defense” forces), and independent drug trafficking cartels. The two main leftist
guerrilla groups are the Revolutionary Armed Forces of Colombia (FARC) and the
National Liberation Army (ELN). The rightist paramilitaries are coordinated by the
United Self-Defense Forces of Colombia (AUC). All three groups participate in drug
production and trafficking, regularly kidnap individuals for ransom, and have been
accused of gross human rights abuses. The three have been designated foreign
terrorist organizations by the United States. The AUC and Colombian military have
been accused of collaborating in fighting the FARC and ELN.
Table 3. U.S. Counternarcotics Assistance to Colombia,
FY2000-FY2007
(in millions $)
ACI F M F I M ET NADR DO D Tot al
Interdict.Alt. Dev.
FY2000686.40208.00 — 0.90 — 229.201124.50
FY200148.00 — — 1.00 — 190.20239.20
FY2002243.50136.40 — 1.2025.00119.10525.20
FY2003 412.00 168.20 17.10 1.20 3.30 165.00 766.80
FY2004 324.60 159.30 98.50 1.70 0.20 122.00 706.30
FY2005 310.70 152.10 99.20 1.70 5.10 200.00 767.80
FY2006 307.70 157.00 89.10 1.67 5.48 122.00 682.95
FY2007 298.93 166.07 85.50 1.61 3.96 na 556.07
T otal 2,631.83 1,147.07 389.40 10.98 43.04 1,147.50 5,368.82
Sources: Figures are drawn from the annual State Department and USAID Congressional Budget
Justifications for fiscal years 2002 through 2007, and congressional testimony. FY2007 figures are
from P.L. 110-5.
Note: FY2006 figures differ from those appropriated by Congress because of a 1% rescission that
Congress included in the FY2006 Defense Appropriations Act (P.L. 109-148).



Peru
Peru is the second largest recipient of ACI funding with $98.5 million requested
for FY2007. This represented a reduction from $106.9 million in FY2006. For
FY2007, Congress provided $103.17 million for Peru. The request proposed
splitting ACI funds, with $56 million for interdiction and $42.5 million for
alternative development and institution building. Interdiction funds would focus on
improving Peruvian airlift operations, determining the extent of coca cultivation in
the country, and demand reduction and money laundering programs. Alternative
development funds would address roads, bridges, schools and health care access, land
reform, and agri-business.
Peru shares its northern border with Colombia, and is the second largest cocaine
producer in the world. It exports high purity cocaine and cocaine base to markets in
South America, Mexico, Europe, and the United States. Nevertheless, Peru has been
viewed as a success story in counternarcotics efforts because joint U.S.-Peru air and
riverine interdiction operations, aggressive eradication efforts, and alternative
development programs have significantly reduced coca production. Counternarcotics
policy in Peru has faced growing resistance from indigenous communities that view
coca leaf cultivation as a cultural right and source of income. A 2004 Peruvian study
found that approximately two million people use coca leaf either habitually or
occasionally, and another two million use it for tea, or for traditional or ceremonial
purposes. Some regions have attempted to de-criminalize coca growing, a move that
the government has resisted.
Table 4. U.S. Counternarcotics Assistance to Peru,
FY2000-FY2007
(in millions $)
ACI
FMFIMETTotalInterdict.Alt. Dev.
FY200055.0025.00 — 0.5080.50
FY200121.0027.00 — 0.5048.50
FY200275.0067.50 — 0.50143.00
FY2003 59.50 68.60 1.00 0.60 129.70
FY200466.3049.70 — — 116.00
FY200561.5053.90 — — 115.40
FY200658.4048.50 — — 106.92
FY2007 56.00 47.17 0.03 0.05 103.24
T otal 452.70 387.37 1.03 2.15 843.26
Sources: Figures are drawn from the annual State Department and USAID Congressional Budget
Justifications for fiscal years 2002 through 2007. FY2007 figures are from P.L. 110-5.



Bolivia8
For FY2007, the Administration proposed spending, and Congress approved,
$66 million in Bolivia, a reduction from $79.2 million in FY2006. The requested
amount would be divided between $35.0 million for interdiction and $31.0 million
for alternative development and institution building. Interdiction funds would be
used to identify and eradicate illegal crops, and to disrupt trafficking operations.
Alternative development would continue support for the production of licit crops,
and establish integrated justice centers in conflictive regions.
Landlocked Bolivia shares no border with Colombia, but Bolivia’s significant
gains in reducing illegal coca production could be threatened by any successes in
controlling production in Colombia. For some 20 years, U.S. relations with Bolivia
have centered largely on controlling the production of coca leaf and coca paste,
which was usually shipped to Colombia to be processed into cocaine. The United
States has provided significant interdiction and alternative development assistance.
There has been growing public opposition in Bolivia to counternarcotics policy that
has served to fuel to popular discontent and political instability. Some critics believe
that U.S. policy supporting forced drug crop eradication contributed to electoral
support for left-of-center opposition political figures, such as Evo Morales, who won
the presidency in 2005.
Table 5. U.S. Counternarcotics Assistance to Bolivia,
FY2000-FY2007
(in millions $)
ACI
FMFIMETTotalInterdict.Alt. Dev.
FY200057.00101.00 — 0.50158.50
FY200132.0020.00 — 0.7052.70
FY2002 48.00 39.60 2.00 0.70 90.30
FY2003 49.00 41.70 2.00 0.80 93.50
FY2004 49.20 41.80 4.00 0.60 95.60
FY200548.6041.70 — — 90.30
FY200642.6036.60 — — 79.20
FY2007 35.00 31.00 0.03 0.05 66.08
T otal 361.40 353.40 8.03 3.35 726.18
Sources: Figures are drawn from the annual State Department and USAID Congressional Budget
Justifications for fiscal years 2002 through 2007. FY2007 figures are from P.L. 110-5.


8 For more information on Bolivia, see CRS Report RL32580, Bolivia: Political and
Economic Developments and Implications for U.S. Policy, by Clare Ribando.

Ecuador 9
Ecuador is the fourth largest recipient of ACI funds. For FY2007, the
Administration requested, and Congress approved, $17.3 million, a reduction from
nearly $20 million in FY2006. Funds would be divided between $8.9 million for
interdiction and $8.4 million for alternative development and institution building.
The objective of assistance to Ecuador is to stop or prevent any spillover of drug
trafficking and guerrilla activities from Colombia, and to stop the transit of drugs
destined for the United States.
On Colombia’s southern border, Ecuador is the most exposed of Colombia’s
neighbors to the influx of drugs and guerrillas, being situated adjacent to areas in
southern Colombia that are guerrilla strongholds and heavy drug producing areas.
As a major transit country for cocaine and heroin from Colombia and Peru, Ecuador
cooperates extensively with the United States in counternarcotics efforts.
Nonetheless, the State Department reports that weak public institutions, the uneven
implementation of new criminal proceedings, and widespread corruption limit the
country’s ability to counter drug trafficking. In November 1999, the United States
signed a 10-year agreement with Ecuador for a forward operating location (FOL) in
Manta, on the Pacific Coast, for U.S. aerial counterdrug detection and monitoring
operations.
Table 6. U.S. Counternarcotics Assistance to Ecuador,
FY2000-FY2007
(in millions $)
ACI
FMFIMETTotalInterdict.Alt. Dev.
FY200013.208.00 — 0.5021.70
FY20012.20 — — 0.602.80
FY200215.0010.00 — 0.6025.60
FY2003 15.00 15.90 1.00 0.60 32.50
FY200420.0015.00 — — 35.00
FY200510.9014.90 — — 25.80
FY20068.4011.40 — — 19.80
FY2007 8.90 8.40 0.03 0.05 17.38
T otal 93.60 83.60 1.03 2.35 180.58
Sources: Figures are drawn from the annual State Department and USAID Congressional Budget
Justifications for fiscal years 2002 through 2007. FY2007 figures are from P.L. 110-5.


9 For more information on Ecuador, see CRS Report RS21687, Ecuador: Political and
Economic Situation and U.S. Relations, by Clare Ribando.

Br az i l 10
Congress approved the FY2007 ACI request for Brazil totaling $4 million
mainly for interdiction and law enforcement activities. Brazil’s isolated Amazon
region, populated largely by indigenous groups, forms Colombia’s southeastern
border. Brazil is not a significant drug-producing country, but is a conduit for the
transit of coca paste and cocaine from Colombia to Europe and the United States. It
is also becoming a final destination, with marked increases in crack cocaine and
heroin abuse.
Brazilians have long been concerned about the sparsely populated territory in
the huge Amazon region, and they have been fearful historically of foreign
intervention. In an effort to exercise control over this vast territory, Brazil has
constructed a $1.4 billion sensor and radar project called the Amazon Vigilance
System (SIVAM from its acronym in Portuguese), offering to share data from this
system with neighbors and the United States. It has established a military base at
Tabatinga, with 25,000 soldiers and policemen, with air force and navy support. In
2000, it launched COBRA, an inter-agency border security program to deal with
spillover drug crime from Colombia. In 2003, Brazil expanded COBRA-like
programs to its northern borders with Peru, Venezuela, and Bolivia. The programs
focus on controlling land and air entry into Brazil and are headquartered at Tabatinga.
Table 7. U.S. Counternarcotics Assistance to Brazil,
FY2000-FY2007
(in millions $)
ACI
IMETTotalInterdict.Alt. Dev.
FY20005.00 — 0.205.20
FY20012.00 — 0.302.30
FY20026.00 — 0.406.40
FY20036.00 — 0.506.50
FY200410.20 — — 10.20
FY20058.90 — — 8.90
FY20065.90 — — 5.90
FY20074.00 — 0.054.05
Total48.00 — 1.4549.45
Sources: Figures are drawn from the annual State Department and USAID Budget Justifications for
fiscal years 2002 through 2007. Brazil did not receive FMF during this time period. FY2007 figures
are from P.L. 110-5.


10 For further information, see CRS Report RL33456 Brazil and U.S. Relations, by Clare
Ribando.

Venezuela11
The Administration proposed spending, and Congress approved, $1 million in
FY2007 counternarcotics assistance to Venezuela largely for interdiction and law
enforcement purposes, a reduction from $2.2 million in FY2006. Because of
Venezuela’s extensive 1,370-mile border with Colombia, it is a major transit route
for cocaine and heroin destined for the United States. Despite political tensions in
U.S.-Venezuelan relations, there has been continuing cooperation with the U.S. Drug
Enforcement Agency (DEA).
On September 15, 2005, President Bush designated Venezuela, pursuant to
international drug control certification procedures set forth in the Foreign Relations
Authorization Act, FY2003 (P.L. 107-228), as one of two countries that had failed
demonstrably to adhere to its obligations under international narcotics agreements.
At the same time, the President waived economic sanctions that would have curtailed
U.S. assistance for democracy programs in Venezuela, and ACI funding will not be
affected.The justification noted that despite Venezuela’s increase in drug seizures
over the past four years, Venezuela has not addressed the increasing use of
Venezuelan territory to transport drugs to the United States. The action was taken
in the aftermath of Venezuela’s August 2005 decision to suspend its cooperation with
the DEA.
Table 8. U.S. Counternarcotics Assistance to Venezuela,
FY2000-FY2007
(in millions $)
ACI
IMETTotalInterdict.Alt. Dev.
FY20004.20 — 0.404.60
FY20011.20 — 0.401.60
FY20025.00 — 0.505.50
FY20032.10 — 0.702.80
FY20045.00 — — 5.00
FY20052.98 — — 2.98
FY20062.23 — — 2.23
FY20071.00 — 0.041.04
Total23.71 — 2.0425.75
Sources: Figures are drawn from the annual State Department and USAID Budget Justifications for
fiscal years 2002 through 2007. Venezuela did not receive FMF during this period. FY2007 figures
are from P.L. 110-5.


11 For more information on Venezuela, see CRS Report RL32488, Venezuela: Political
Conditions and U.S. Policy, by Mark Sullivan.

Panama12
For FY2007, the Administration requested, and Congress approved, $4 million
for counternarcotics programs to assist Panama. Because of its geographic location
bordering Colombia at the crossroads of North and South America, its largely
unguarded coastline, and its well-developed transportation, banking, trade and
financial sectors, Panama is a major transit route for illicit drugs and an attractive site
for money laundering. Drug traffickers use fishing vessels, cargo ships, small
aircraft, and speed boats to move illicit drugs — primarily cocaine, but also heroin
and Ecstasy — through Panama.
According to the Department of State, security in Panama’s Darien region
bordering Colombia has improved in recent years, although the smuggling of
weapons and drugs across the border continues. According to the Department of
State’s International Narcotics Control Strategy Report, Panama’s cooperation with
the United States on counternarcotics efforts is excellent, although the country’s
difficult fiscal situation has impeded Panama’s law enforcement ability. For this
reason, the Department of State maintains that U.S. assistance is critical in ensuring
effective Panamanian law enforcement.
Table 9. U.S. Counternarcotics Assistance to Panama,
FY2000-FY2007
(in millions $)
ACI
FMFIMETTotalInterdict.Alt. Dev.
FY20005.00 — — 0.105.10
FY20011.00 — — 0.201.20
FY20025.00 — — 0.205.20
FY20034.50 — 1.000.205.70
FY20046.50 — 2.000.609.10
FY20055.95 — 0.990.967.90
FY20064.46 — 0.990.896.34
FY20074.00 — 0.780.625.40
Total36.41 — 5.763.7745.94
Sources: Figures are drawn from the annual State Department and USAID Budget Justifications for
fiscal years 2002 through 2007. FY2007 figures are from P.L. 110-5.


12 For more information on Panama, see CRS Report RL30981, Panama: Political and
Economic Conditions and U.S. Relations, by Mark Sullivan.

Congressional Conditions on Assistance
Since first approving expanded assistance to Colombia for counternarcotics
programs in 2000, Congress has included a number of conditions on U.S. assistance
in both authorization and appropriations legislation. The most recently enacted
funding legislation is the FY2007 Foreign Operations Appropriations Act, as
included in the Revised Continuing Appropriations Resolution (H.J.Res. 20, P.L.

110-5). The FY2007 National Defense Authorization Act (H.R. 5122, P.L.109-364)


also included provisions relating to Colombia. The FY2006 National Defense
Authorization Act (H.R. 1815, P.L. 109-163) authorized funding for Department of
Defense drug interdiction activities.
Expanded Authority
Both the FY2007 Foreign Operations Appropriations Act and the FY2007
National Defense Authorization, maintain language, first approved by Congress in
2002, authorizing support for a unified campaign against narcotics trafficking and
activities by organizations designated as terrorist organizations. Appropriations report
language notes that counternarcotics, alternative development, and judicial reform
should remain the principal focus of U.S. policy in Colombia. This authority shall
cease if the Secretary of State has credible evidence that the Colombian Armed
Forces are not vigorously attempting to restore government authority and respect for
human rights in areas under the effective control of paramilitary and guerrilla
organizations.
Personnel Caps
The FY2005 National Defense Authorization Act changed existing law with
regard to the cap on the number of U.S. military and civilian contractors that can be
deployed in Colombia in support of Plan Colombia. The cap on military personnel
was raised from 400 to 800, and for civilian contractors, from 400 to 600. The
number of deployed personnel changes as programs begin, expand, or finish. The
personnel caps do not apply to foreign national contract employees, or to personnel
stationed at the U.S. embassy.
Helicopters
The FY2007 Foreign Operations Appropriations Act maintains current law
requiring that if any helicopter procured with ACI funds is used to aid or abet the
operations of any illegal self-defense group or illegal security cooperative, the
helicopter shall be immediately returned to the United States.
Reports
The FY2007 Foreign Operations Appropriations Act requires a report from the
Secretary of State prior to the obligation of funds on the proposed programs, projects,
and activities funded by ACI on a country-by-country basis.



Colombian Human Rights
The FY2007 Foreign Operations Appropriations Act allows the obligation of
75% of assistance to the Colombian Armed Forces without a determination and
certification from the Secretary of State regarding respect for human rights and
severing ties with paramilitary groups. The remaining 25% can be released in two
installments of 12.5% each. The first installment can be made provided that the
Secretary of State certifies that
!the Commander General of the Colombian Armed Forces is
suspending members who have been credibly alleged to have
committed gross violations of human rights or to have aided or
abetted paramilitary organizations;
!the Colombian government is vigorously investigating and
prosecuting members of the military who have been credibly alleged
to have committed gross violations of human rights or to have aided
or abetted paramilitary organizations, and promptly punishing those
found guilty;
!the Colombian Armed Forces have made substantial progress in
cooperating with civilian prosecutors and judicial authorities in such
cases;
!the Colombian Armed Forces have made substantial progress in
severing links to paramilitary organizations;
!the Colombian government is dismantling paramilitary leadership
and financial networks by arresting commanders and financial
backers; and
!the Colombian government is taking effective steps to ensure that
land and property rights of indigenous communities are not being
violated by the Colombian Armed Forces.
The last installment can be made after July 31, 2007, if the Secretary of State
certifies that the Colombian Armed Forces are continuing to meet the above
conditions and are conducting vigorous operations to restore government authority
and respect for human rights in areas under the effective control of paramilitary and
guerrilla organizations. The law also requires that not later than 60 days after
enactment, and every 90 days thereafter, the Secretary of State shall consult with
internationally recognized human rights organizations regarding progress in meeting
these conditions.
The law denies visas to anyone who the Secretary of State determines has
willfully provided any support to leftist guerrilla organizations or rightist
paramilitaries, or has participated in the commission of gross violations of human
rights in Colombia. The provision may be waived if the Secretary of State
determines and certifies, on a case-by-case basis, that the issuance of a visa is



necessary to support the peace process in Colombia, or for urgent humanitarian
purposes.
In addition to these provisions that are specific to Colombia, the law includes
a provision from previous legislation, often called the Leahy amendment, that denies
funds to any unit of a security force for which the Secretary of State has credible
evidence of gross human rights violations. The Secretary may continue funding if
he determines and reports to Congress that the foreign government is taking effective
measures to bring the responsible members of these security forces to justice.
Aerial Fumigation
The FY2006 Foreign Operations Appropriations Act required that not more than
20% of funds used for the procurement of chemicals for aerial coca and poppy
fumigation be made available unless the Secretary of State certifies that 1) the
herbicide mixture is in accordance with EPA label requirements for comparable use
in the United States and any additional controls recommended by the EPA; and 2) the
herbicide mixture does not pose unreasonable risks or adverse effects to humans or
the environment, including endemic species. Further, the Secretary of State must
certify that complaints of harm to health or licit crops caused by fumigation are
evaluated and fair compensation is being paid for meritorious claims. These funds
may not be made available unless programs are being implemented by USAID, the
Colombian government, or other organizations to provide alternative sources of
income in areas where security permits for small-acreage growers whose illicit crops
are targeted for fumigation. Such programs are to include consultation with local
communities. For FY2007, the Senate bill maintained the provision, whereas the
House version was silent.
Prohibition on Participation in Combat Operations
The FY2007 Foreign Operations Appropriations Act continues the prohibition
on U.S. military personnel or U.S. civilian contractors participating in any combat
operations in Colombia. This provision has been included in appropriation
legislation since the original Plan Colombia law approved by Congress in 2000.
Bolivian Human Rights
The FY2006 Foreign Operations Appropriations Act required the Secretary of
State to certify that the Bolivian military was respecting human rights, and that
civilian judicial authorities were investigating and prosecuting, with the military’s
cooperation, military personnel who have been implicated in gross violations of
human rights. Such a certification was to be issued before any ACI funds were made
available to the Bolivian military. House and Senate versions of the FY2007 bill
contained differing report language relating to human rights (House) and seizure of
natural gas fields (Senate).



Demobilization of Illegally Armed Groups in Colombia
The FY2007 Foreign Operations Appropriations Act makes funds available to
assist in the demobilization and disarmament of former members of foreign terrorist
organizations (FTOs), if the Secretary of State certifies that:
!assistance will be provided only for individuals who have verifiably
renounced and terminated any affiliation or involvement with FTOs,
and are meeting all the requirements of the Colombia
Demobilization program;
!the Colombian government is fully cooperating with the United
States in extraditing FTO leaders and members who have been
indicted in the United States for murder, kidnaping, narcotics
trafficking, and other violations of U.S. law;
!the Colombian government is implementing a concrete and workable
framework for dismantling the organizational structures of FTOs;
and
!funds will not be used to make cash payments to individuals, and
funds will only be available for any of the following activities:
verification, reintegration (including training and education), vetting,
recovery of assets for reparations for victims, and investigations and
prosecutions.
Major Legislative Activity in the 109th Congress,
Second Session, and 110th Congress, First Session
FY2007 Foreign Operations Appropriations
The Andean Counterdrug Initiative, as well as FMF and IMET, are funded in
the annual Foreign Operations Appropriation bill. The 109th Congress did not
complete work on a number of appropriation bills, including Foreign Operations.
Three continuing resolutions were passed to maintain funding into 2007 when theth
110 Congress finished all held-over spending bills. The final bill, the FY2007
Continuing Resolution (H.J.Res. 20/P.L. 109-289, as amended by P.L. 110-5) was
passed on February 15, 2007. Funding for ACI in FY2007 was set at $721.5 million,
an amount equal to the President’s request. Many of the changes proposed by
Congress (see House and Senate action below) were not maintained in the final
version of the continuing resolution because many programs, including conditions
and limitations, were retained from the FY2006 spending bill.
House Action. On May 25, 2006, the House Appropriations Committee
marked up the FY2007 spending bill. The bill made significant changes to the way
foreign aid to Colombia is provided, but largely approved the Administration’s
request with regard to funding levels. The most significant change was to provide
some funding for Colombia from traditional aid accounts rather than the Andean



Counterdrug Initiative (ACI) and to create a new account — the Trade Capacity
Enhancement Fund — to which some ACI funds would be transferred.
The bill provided a total of $545.2 million for Colombia, an increase of $80.4
million over the FY2006 level. Instead of funding alternative development and
institution building from the ACI account, the bill provided $135 million in
Economic Support Funds (ESF) for alternative development, a $10 million increase
from the request. In addition, the bill provided $26.2 million in International
Narcotics Control and Law Enforcement (INCLE) funds for rule of law programs,
equal to the request, that were previously provided from the ACI account. Funding
for drug interdiction programs at $313.9 million, equal to the request, was maintained
in the ACI account. The provision of some funds from non-ACI accounts was
characterized as beginning the process of treating Colombia as a strategic partner.
The Subcommittee also included $70.2 million for the Critical Flight Safety Program,
earmarked for operations in Colombia. This was $4.5 million above the request.
The bill increased funding for Peru by $10.5 million over the request, providing
$46 million for alternative development and $63 million for interdiction programs.
These funds remain in the ACI account. The bill cut ACI funding for Bolivia by $15
million from the request, all of it in interdiction programs. Funding for alternative
development was set at $31 million, and $20 million for interdiction. The cut was
made in response to reports that Bolivia’s commitment to fighting drugs was
lessening. ACI funding for Brazil ($4 million), Ecuador ($17.3 million), and Panama
($4 million) was equal to the request. The $1 million requested for Venezuela was
not provided.
The Subcommittee created a new account — the Trade Capacity Enhancement
Fund — and a new position at USAID to oversee and coordinate trade assistance
programs. While the total amount provided was $522 million, the bill transferred
$62.5 million of ACI funds to the new account for use in ACI countries. The
Subcommittee’s report noted that this is the amount of ACI funds that would have
been committed to trade promotion activities.
Senate Action. The Senate Appropriations Committee reported its version
of the Foreign Operations bill on June 29, and did not make as many changes to the
ACI program as the House. The Senate bill provided $699.4 million for ACI, a
decrease of $22 million. A portion of the decrease ($9.8 million) was transferred to
a Democracy Fund for similar types of programs as that provided by ACI. The
remaining decrease was from interdiction activities and the Critical Flight Safety
Program, which was cut by $12.3 million. Both the House and Senate bills
maintained reporting requirements from previous appropriations bills.



FY2006 Supplemental Appropriations13
The Administration did not request additional counternarcotics funds for the
Andean region in the supplemental. However, an amendment on the House floor
(H.R. 4939) added $26.3 million for drug interdiction aircraft in Colombia.
Sponsored by Representative Burton, the funds would be used to purchase three new
DC-3 fixed-wing aircraft for the Colombian Navy. The bill passed the House on
March 17 and the Senate on May 4. It was signed into law on June 15 (P.L. 109-234).
FY2007 John Warner National Defense Authorization Act
Congress included a number of provisions in the FY2007 National Defense
Authorization Act (H.R. 5122, P.L. 109-702 signed into law on October 17, 2006)
relating to DOD’s role in counter-narcotics and Colombia. The bill re-authorized
previous law authorizing the Defense Department to provide support for counterdrug
activities of other government agencies (Sec. 1004) and to support counterdrug
activities of some foreign governments (Sec. 1033). The legislation also authorized
a unified counterdrug and counterterrorism campaign in Colombia.
Major Legislative Activity in the 109th Congress,
First Session
FY2006 Foreign Operations Appropriations
On June 28, 2005, the House passed H.R. 3057 (H.Rept. 109-152) fully funding
the ACI at $734.5 million. The Senate passed H.R. 3057 on July 20, 2005 (S.Rept.
109-96) also fully funding the ACI. Both House and Senate versions included
conditions on assistance, similar to current law, regarding human rights, expanded
authority for a unified campaign, a prohibition on combat, and the use of U.S.-
provided helicopters.
The House passed the conference report (H.Rept. 109-265) on November 4,
2005, and the Senate followed suit on November 10. The President signed it into law
on November 14, 2005 (P.L. 109-102). The final agreement fully funded the ACI at
$734.5 million, but provided a different mix on how that money should be spent than
did either the House or Senate bills.
The conference report made ACI funds available until September 30, 2008. It
adopted language with regard to demobilization, and appropriated $20 million to
assist Colombia with the demobilization of rightist paramilitary groups. The
conference report removed a Senate provision requiring the Secretary of State to
consult with the U.N. High Commissioner for Human Rights in Colombia before
making a certification that Colombia is meeting human rights conditions. Instead,


13 For more information on the FY2006 Supplemental, see CRS Report RL33298, FY2006
Supplemental Appropriations: Iraq and Other International Activities; Additional Katrina
Hurricane Relief, by Paul M. Irwin and Larry Nowels, coordinators.

the conference report stated the expectation that the Secretary will consider the
opinion of the High Commissioner and the Committees on Appropriations prior to
making the certification. It also increased funding for alternative development and
rule of law programs in Colombia from $149.76 million, as provided by the Senate,
to $158.6 million.
Foreign Relations Authorization Act, FY2006 and FY2007
The House International Relations Committee reported H.R. 2601, the Foreign
Relations Authorization Act, with a provision making U.S. assistance to Colombia
contingent on a certification from the Secretary of State that Colombia has a
workable framework in place for the demobilization and dismantling of former
combatants, and that Colombia is cooperating with the United States on extradition
requests. The bill also calls for a report from the Secretary of State that details tax
code enforcement in Colombia. In floor action, the House approved a Burton
amendment to authorize the transfer of two tactical, unpressurized marine patrol
aircraft for use by the Colombian Navy for interdiction purposes. The bill passed the
House on July 20, 2005.
The Senate had under consideration its version of the foreign relations
authorization bill, S. 600. The bill authorizes funding for ACI and includes a number
of conditions on assistance consistent with current law. The bill authorized a unified
campaign against narcotics trafficking and terrorist activities; maintains the existing
cap on military and civilian personnel allowed to be stationed in Colombia; prohibits
U.S. military and civilian personnel from participating in combat operations; and
maintains reporting requirements relating to human rights and the conduct of U.S.
operations.
National Defense Authorization Act, FY2006
Both the House and Senate approved the FY2006 National Defense
Authorization Act (H.R. 1815) on December 19, 2005, which was signed by the
President on January 6, 2006 (P.L. 109-163). The law authorized $901.7 million for
DOD-wide global drug interdiction activities. Unlike the FY2005 authorization, it
did not include provisions relating to Colombia or the Andean Counterdrug Initiative.



Appendix A. Map


Figure 1. Andean Counterdrug Initiative Countries