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• China's Economic Conditions [Updated August 5, 2003]

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  "Since the initiation of economic reforms in 1979, China has become one of the world's fastest growing economies. From 1979-2002, China's real annual GDP [Gross Domestic Product] averaged 9.3%; it rose by 8.0% in 2002. Many economists speculate that China could become the world's largest economy at some point in the near future, provided that the government is able to continue and deepen economic reforms, particularly in regards to its efficient state-owned enterprises (SOEs) and state banking system. Progress in reforming these sectors in recent years has been somewhat mixed. […] China's economy remained relatively healthy in 2002, despite economic slowdowns in other parts of the world. Foreign investment continued to pour into China, and the Chinese government effectively used public spending to boost the economy. However, painful economic reforms will be necessary to keep the economic strong in 2003 and beyond. The recent outbreak in early 2003 of a very contagious virus called Severe Acute Respiratory Syndrome (SARS) in China appears to have had a short-term negative impact on the Chinese economy."

  Library of Congress. Congressional Research Service

  Morrison, Wayne M.

  2003-08-05
• Intelligence Issues for Congress [Updated August 5, 2003]

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  "The U.S. Intelligence Community continues to adjust to the21st Century environment. Congressional and executive branch initiatives have emphasized enhancing cooperation among the different agencies that comprise the Community by giving greater managerial authority to the Director of Central Intelligence (DCI). Priority continues to be placed on intelligence support to military operations and on involvement in efforts to combat transnational threats, especially international terrorism. Growing concerns about transnational threats are leading to increasingly close cooperation between intelligence and law enforcement agencies. This relationship is complicated, however, by differing roles and missions as well as statutory charters. The September 11, 2001 terrorist attacks, for which no specific warning was provided, have led to increased emphasis on human intelligence, statutory changes permitting closer cooperation between law enforcement and intelligence agencies, and to consideration of organizational changes to the Intelligence Community."

  Library of Congress. Congressional Research Service

  Best, Richard A.

  2003-08-05
• Chile: Political and Economic Conditions and U.S. Relations [August 5, 2003]

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  "A South American nation with a population of about 15 million, Chile returned to democratic rule in 1990 after 17 years of military government. The current administration of President Ricardo Lagos, inaugurated in March 2000 to a six-year term, is Chile's third elected government since the return to civilian rule. Chile has weathered the transition to democracy well, although civil-military relations have been tense at times. The October 1998 arrest of former military ruler General Augusto Pinochet in London on human rights violations exacerbated political schisms in Chile, but in the end, Chilean democracy appears to have emerged stronger with the civilian government more firmly in charge of the military. Chile is generally recognized as a model for the successful implementation of market-oriented economic reform measures, and there has been political consensus in the country on maintaining a liberal market economy and prudent fiscal and monetary policies. The Lagos government has continued the country's export-oriented economic strategy. The economy registered positive growth rates from the mid-1980s through 1998 but contracted in 1999 because of the Asian economic crisis. In 2000, the economy rebounded, but economic growth slowed in 2001 and in 2002 because of the global and regional economic slowdown. Economic growth is forecast to increase by 3.5% in 2003 and 4.5% in 2004, fueled by improvement in consumer and investor confidence and Chile's trade liberalization efforts. U.S. relations with Chile, which improved considerably with the nation's return to democracy in 1990, are close, characterized by strong commercial ties and extensive consultation between the two governments on bilateral and other issues of mutual concern."

  Library of Congress. Congressional Research Service

  Sullivan, Mark P.

  2003-08-05
• Visa Issuances: Policy, Issues, and Legislation [Updated August 4, 2003]

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  "Since the September 11, 2001 terrorist attacks, considerable concern has been raised because the 19 terrorists were aliens who apparently entered the United States legally despite provisions in immigration laws that bar the admission of terrorists. Fears that lax enforcement of immigration laws regulating the admission of foreign nationals into the United States may continue to make the United States vulnerable to further terrorist attacks have led many to call for revisions in the policy as well as changes in who administers immigration law. Foreign nationals not already legally residing in the United States who wish to come to the United States generally must obtain a visa to be admitted, with certain exceptions noted in law. Prior to establishment of the Department of Homeland Security (DHS), two departments -- the Department of State (DOS) Bureau of Consular Affairs and the Department of Justice (DOJ) Immigration and Naturalization Service (INS) -- each played key roles in administering the law and policies on the admission of aliens. Although DOS Consular Affairs remains the agency responsible for issuing visas, DHS' Bureau of Citizenship and Immigrant Services approves immigrant petitions, and DHS's Bureau of Customs and Border Protection inspects all people who enter the United States. In FY2002, DOS issued approximately 6.2 million visas and rejected over 2.2 million aliens seeking visas. The President's proposal for DHS, H.R. 5005 as introduced, would have bifurcated visa issuances so that DHS would set the policies, giving the DHS Secretary exclusive authority through the Secretary of State to issue or refuse to issue visas and retaining responsibility for implementation in DOS."

  Library of Congress. Congressional Research Service

  Wasem, Ruth Ellen

  2003-08-04
• Pakistan: Chronology of Recent Events [Updated August 4, 2003]

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  "This report provides a chronology of recent events involving Pakistan and Pakistan- U.S. relations. Sources include, but are not limited to, major newswires, the U.S. Department of State, and Pakistani news outlets. For a substantive review, see CRS Issue Brief IB94041, 'Pakistan-U.S. Relations'. This report will be updated regularly."

  Library of Congress. Congressional Research Service

  Kronstadt, K. Alan

  2003-08-04
• Pakistan-U.S. Relations [Updated August 4, 2003]

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  "Key areas of U.S. concern regarding Pakistan include regional terrorism; weapons proliferation; the ongoing Kashmir dispute and Pakistan-India tensions; human rights protection; and economic development. A U.S.-Pakistan relationship marked by distance and discord was transformed by the September 2001 terrorist attacks on the United States and the ensuing enlistment of Pakistan as a pivotal ally in U.S.-led anti-terrorism efforts. Top U.S. officials regularly praise Pakistan for its ongoing cooperation, although concerns exist about Islamabad's commitment to core U.S. concerns in the region. Pakistan continues to face serious problems, including a weak economy and domestic terrorism."

  Library of Congress. Congressional Research Service

  Kronstadt, K. Alan

  2003-08-04
• Saudi Arabia: Current Issues and U.S. Relations [Updated August 4, 2003]

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  "Saudi Arabia, a monarchy ruled by the Saudi dynasty, enjoys special importance in the international community because of its unique association with the Islamic religion and its oil wealth. Since the establishment of the modern Saudi kingdom in 1932, it has benefitted from a stable political system based on a smooth process of succession to the throne and an increasingly prosperous economy dominated by the oil sector. Decrees by King Fahd in March 1992 establishing an appointive consultative council and provincial councils and promulgating a basic law providing for certain citizens' rights could signal a gradual trend toward a more open political system. The United States and Saudi Arabia have long-standing economic and defense ties. A series of informal agreements, statements by successive U.S. administrations, and military deployments have demonstrated a strong U.S. security commitment to Saudi Arabia. Saudi Arabia was a key member of the allied coalition that expelled Iraqi forces from Kuwait in 1991. Saudi Arabia hosted U.S. aircraft enforcing the no-fly zone over southern Iraq; between the two Iraq wars of 1991 and 2003; however, Saudi Arabia did not offer the use of its territory for major air strikes against Iraq in response to Iraqi obstruction of U.N. weapons inspections. Moreover, Saudi officials expressed opposition to the U.S.-led military campaign launched against Iraq in March- April 2003, although they reportedly permitted certain support operations by U.S. and British military forces, as well in addition to making some facilities available to them. […] Other principal issues of bilateral interest include the Saudi position on the Arab-Israeli conflict, security in the post-war Gulf region, arms transfers to Saudi Arabia, Saudi external aid programs, bilateral trade relationships, and Saudi policies involving human rights and democracy."

  Library of Congress. Congressional Research Service

  Prados, Alfred B.

  2003-08-04
• China-U.S. Trade Issues [Updated August 4, 2003]

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  "U.S.-China economic ties have expanded substantially over the past several years. Total U.S.-China trade rose from $5 billion in 1980 to $147 billion in 2002. China is now the fourth-largest U.S. trading partner. With a huge population and a rapidly expanding economy, China is a potentially huge market for U.S. exporters. Yet, U.S.-China commercial relations have been strained by a number of issues, including a surging U.S. trade deficit with China ($102.3 billion in 2002), China's restrictive trade and investment practices, and its failure to provide adequate protection for U.S. intellectual property rights (IPR). […] The continued rise in the U.S.-China trade imbalance has led several Members to call on China to either appreciate its currency or to make it fully convertible (currently, China's currency is pegged to the U.S. dollar)."

  Library of Congress. Congressional Research Service

  Morrison, Wayne M.

  2003-08-04
• Iraq: U.S. Military Operations [Updated August 4, 2003]

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  Iraq's chemical, biological, and nuclear weapons programs, together with Iraqi long-range missile development and support for terrorism, are the primary justifications put forward for military action. On March 17, 2003 President Bush issued an ultimatum demanding that Saddam Hussein and his sons depart from Iraq within 48 hours. On March 19, offensive operations began with air strikes against Iraqi leadership positions. By April 15, after 27 days of operations, coalition forces were in relative control of all major Iraqi cities and Iraqi political and military leadership had disintegrated. On May 1, President Bush declared an end to major combat operations. There was no use of chemical or biological (CB) weapons, and no CB weapons stockpiles have been found. The major challenges are now quelling a persistent Iraqi resistance movement, restoring civil order, and providing basic services to the urban population. U.S. troops continue to come under sporadic attacks, primarily in central Iraq. DOD officials have now acknowledged there is at least regional organization for these attacks, with apparently ample supplies of arms and funding. Resistance is believed to comprise primarily former regime supporters. There is concern that growing resentment of coalition forces and resurgent Iraq nationalism, independent of connections with the earlier regime, may be contributing to the resistance. Congress approved a $62.37 billion FY2003 supplemental budget request for Iraq operations (H. Rept. 108-76). DOD currently estimates the cost of operations to be $3.9 billion per month.

  Library of Congress. Congressional Research Service

  Bowman, Steve

  2003-08-04
• Australia: Background and U.S. Relations [Updated August 4, 2003]

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  The Commonwealth of Australia and the United States are close allies under the ANZUS treaty. Australia evoked the treaty to offer assistance to the United States after the attacks of September 11, 2001, in which 22 Australians were among the dead. Australia was one of the first countries to commit troops to United States military operations in Afghanistan and Iraq. On October 12, 2002, a terrorist attack on Western tourists in Bali, Indonesia, killed over 200 including 89 Australians and seven Americans. Although Australia has extensive ties with its neighbors in Asia, it is seeking to strengthen its already close ties to the United States. Since November 14, 2002, the United States and Australia have been negotiating a bilateral Free Trade Agreement. Australia has led peace-keeping efforts in the Asia-Pacific region including East Timor and most recently in the Solomon Islands. This report will be updated as warranted.

  Library of Congress. Congressional Research Service

  Lum, Thomas G. (Thomas Gong), 1961-; Vaughn, Bruce, 1963-

  2003-08-04
• Trade Negotiations in the 108th Congress [Updated August 3, 2003]

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  "On June 6, 2003, the United States signed a bilateral free-trade agreement (FTA) with Chile. A month earlier, the United States had signed a bilateral FTA with Singapore. On July 15, 2003, implementing bills for the FTAs (Chile--H.R. 2738/S. 1416; Singapore-- H.R. 2739/S. 1417) were introduced in the House and Senate; they were passed by the House on July 24 and by the Senate on July 31. On August 4, 2003, the Administration notified Congress of its intent to begin negotiations for an FTA with the Dominican Republic and Bahrain. The Bush Administration is making these and other bilateral and regional FTAs more important elements of U.S. trade policy, a strategy known as 'competitive liberalization.' This strategy is designed to push forward trade liberalization simultaneously on bilateral, regional and multilateral fronts. It is meant to spur trade negotiations by liberalizing trade with countries willing to join FTAs, and to pressure other countries to negotiate multilaterally. Some argue, however, that the accent on regional and bilateral negotiations undermines the multilateral forum and increases the risk of trade diversion away from competitive countries that are not in the trade bloc."

  Library of Congress. Congressional Research Service

  Sek, Lenore; Fergusson, Ian F.

  2003-08-03
• Drug Control: International Policy and Approaches [August 3, 2003]

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  "Efforts to significantly reduce the flow of illicit drugs from abroad into the United States have so far not succeeded. Moreover, over the past decade, worldwide production of illicit drugs has risen dramatically: opium and marijuana production has roughly doubled and coca production tripled. Street prices of cocaine and heroin have fallen significantly in the past 20 years, reflecting increased availability. The effectiveness of international narcotics control programs in reducing consumption is a matter of ongoing concern. […] P.L. 106-246, 'Plan Colombia,' a $1.3 billion military assistance-focused initiative to provide emergency supplemental narcotics assistance to Colombia, was signed into law July 13, 2000. Recently, U.S. policy toward Colombia has focused increasingly on containing the terrorist threat to that country's security. The Bush Administration's FY2004 budget request continues a policy, begun in FY2002, to request authority for the State and Defense Departments to supply assistance to Colombia for counter-terrorism purposes. For instance, U.S.-supplied helicopters and intelligence could be used to support military operations against guerrillas financed by drugs as well as against drug traffickers themselves. Drug control approaches addressed in this issue brief include: 1) Expansion of efforts to reduce foreign production at the source. 2) Expansion of interdiction and enforcement activities to disrupt supply lines. 3) Expansion of efforts to reduce worldwide demand. 4) Expansion of economic disincentives for international drug trafficking. Current trends in U.S. counternarcotics policy also are discussed in the brief. For analysis of the Andean drug issues, see CRS [Congressional Research Service] Report RL31383, 'Andean Regional Initiative (ARI): FY2002 Supplemental and FY2003 Assistance for Colombia and Neighbors.'"

  Library of Congress. Congressional Research Service

  Perl, Raphael

  2003-08-03
• Asia Pacific Economic Cooperation (APEC), Free Trade, and the 2003 Summit in Bangkok, Thailand [August 1, 2003]

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  "On October 20-21, 2003, the Eleventh APEC [Asia Pacific Economic Cooperation] Leader's Meeting (informal summit) is to be held in Bangkok, Thailand. It is to be preceded by meetings of senior officials from member countries, a CEO summit of business leaders, and the APEC Business Advisory Council meeting. The APEC summit is usually attended by the President, Secretary of State, U.S. Trade Representative, and sometimes the Secretary of Commerce. The theme for APEC 2003 is 'A World of Differences: Partnership for the Future' which is intended to bring together the best potential of all APEC economies to confront the challenges of the future, particularly in achieving the APEC goal of free and open trade and investment for developed APEC economies. This central theme is amplified by a series of five sub-themes that are designed to guide APEC's Working Groups and Forums in achieving their goals. […] APEC is an association of 21 economies bordering the Pacific Ocean who are working cooperatively to reduce barriers to trade and investment; ease the exchange of goods, services, resources, and technical know-how; and strengthen economic and technical cooperation. The members include the United States, Canada, Mexico, Chile, Peru, Japan, South Korea, China, Taiwan, Hong Kong, Indonesia, Brunei, Malaysia, Singapore, Thailand, the Philippines, Vietnam, Australia, New Zealand, Papua New Guinea, and Russia. In the 1994 Bogor Declaration, the leaders of APEC declared their intention to establish free trade and investment in the region by the year 2010 for industrialized members and 2020 for the others. This goal has been reaffirmed at the Leader's Meeting each subsequent year."

  Library of Congress. Congressional Research Service

  Nanto, Dick Kazuyuki

  2003-08-01
• Iran-Libya Sanctions Act (ILSA) [July 31, 2003]

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  "The Iran-Libya Sanctions Act (ILSA, P.L. [Public Law] 104-172) was due to expire on August 5, 2001, 5 years after enactment. Debate on renewal of ILSA centered on the difficulties incurred in implementing it, reactions to ILSA on the part of U.S. allies, and changes in U.S. relations with Iran and Libya since enactment. On August 3, 2002, President Bush signed into law H.R. 1954, P.L. 107-24, the ILSA Extension Act of 2001, renewing ILSA for another 5 years. No firms have been sanctioned under ILSA. This report will be updated to reflect legislative developments."

  Library of Congress. Congressional Research Service

  Katzman, Kenneth

  2003-07-31
• Palestinians and Middle East Peace: Issues for the United States [Updated July 30, 2003]

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  "The United States began contacts with the Palestine Liberation Organization (PLO) in December 1988, after the PLO accepted Israel's right to exist, accepted U.N. Resolutions 242 and 338 that call for an exchange of land for peace, and renounced terrorism. The United States continues its contacts with the PLO and the Palestinian Authority elected in January 1996, and is an active broker in the continuing Middle East peace process. […] On May 4, 1994, Israel and the PLO signed an agreement providing for the Israeli withdrawal from Gaza and Jericho (withdrawal completed May 11, 1994). The Interim Agreement signed on September 28, 1995 (also called Oslo II or the Taba Agreement), provided for elections for the 88-seat Palestinian Assembly, the release of Israeli-held prisoners, Israeli withdrawal from six West Bank cities, and other issues. The Israelis withdrew from the West Bank cities by the end of 1995, and the Palestinian Assembly was elected on January 20, 1996, and sworn in on March 7, 1996. Israel and the Palestinians agreed to an Israeli withdrawal from Hebron in January 1997, and on October 23, 1998 signed the Wye agreement to meet previous commitments. The peace talks stalled at Camp David in July 2000, and remain suspended since the Palestinian uprising began in September. Some 1,493 Palestinians and 585 Israelis have died in the continuing confrontation."

  Library of Congress. Congressional Research Service

  Mark, Clyde R.

  2003-07-30
• Iraq: Summary of U.S. Casualties [Updated July 30, 2003]

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  "The Background section of this report outlines the evolution of the current conflict with Iraq since September 11, 2001. This section is followed by a more detailed description and analysis of U.S. policy and a survey of congressional actions on Iraq. The report then reviews a range of issues that the Iraq situation has raised for Congress. These issue discussions have been written by CRS [Congressional Research Service] experts, and contact information is provided for congressional readers seeking additional information. In this section and elsewhere, text boxes list CRS products that provide in-depth information on the topics under discussion or on related topics. The final section links the reader to additional sources of information on the Iraq crisis."

  Library of Congress. Congressional Research Service

  Richardson, Glenda

  2003-07-30
• Israeli-United States Relations [July 30, 2003]

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  "Israeli-U.S. relations are an important factor in U.S. policy in the Middle East, and Congress has placed considerable importance on the maintenance of a close and supportive relationship. The main vehicle for expressing support for Israel has been foreign aid; Israel currently receives about $3 billion per year in economic and military grants, refugee settlement assistance, and other aid. Congress has monitored the aid issue closely along with other issues in bilateral relations, and its concerns have affected Administration's policies. U.S.-Israeli relations have evolved from an initial American policy of sympathy and support for the creation of a Jewish homeland in 1948 to an unusual partnership that links a small but militarily powerful Israel, dependent on the United States for its economic and military strength, with the U.S. superpower trying to balance competing interests in the region. Some in the United States question the levels of aid and general commitment to Israel, and argue that a U.S. bias toward Israel operates at the expense of improved U.S. relations with various Arab states. Others maintain that democratic Israel is a strategic ally, and that U.S. relations with Israel strengthens the U.S. presence in the Middle East."

  Library of Congress. Congressional Research Service

  Mark, Clyde R.

  2003-07-30
• Terrorism and National Security: Issues and Trends [Updated July 29, 2003]

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  "International terrorism has long been recognized as a serious foreign and domestic security threat. This issue brief examines international terrorist actions and threats and the U.S. policy response. Available policy options range from diplomacy, international cooperation, and constructive engagement to economic sanctions, covert action, physical security enhancement, and military force. A modern trend in terrorism is toward loosely organized, self-financed, international networks of terrorists. Another trend is toward terrorism that is religiously- or ideologically-motivated. Radical Islamic fundamentalist groups, or groups using religion as a pretext, pose terrorist threats of varying kinds to U.S. interests and to friendly regimes. A third trend is the apparent growth of cross-national links among different terrorist organizations, which may involve combinations of military training, funding, technology transfer, or political advice. Looming over the entire issue of international terrorism is a trend toward proliferation of weapons of mass destruction (WMD). For instance, Iran, seen as the most active state sponsor of terrorism, has been aggressively seeking a nuclear arms capability, and North Korea has both admitted to having a clandestine program for uranium enrichment and claimed to have nuclear weapons. (See CRS [Congressional Research Service] Issue Brief IB91141, 'North Korea's Nuclear Weapons Program'.) Indications have also surfaced that Al Qaeda has attempted to acquire chemical, biological, radiological, and nuclear weapons. As a result, stakes in the war against international terrorism are increasing and margins for error in selecting appropriate policy instruments to prevent terrorist attacks are diminishing."

  Library of Congress. Congressional Research Service

  Perl, Raphael

  2003-07-29
• Trade and the Americas [Updated July 29, 2003]

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  "At the Summit of the Americas held in December 1994, 34 hemispheric democracies agreed to create a 'Free Trade Area of the Americas' (FTAA) no later than 2005. If created, the FTAA would be a $13 trillion market of 34 countries (Cuba is not included) and nearly 800 million people. The population alone would make it the largest free trade area in the world with more than twice the 375 million of the now 15-nationEuropean Union. In the 8 years following the 1994 summit, Western Hemisphere trade ministers have met seven times to advance the negotiating process. At the sixth meeting in Buenos Aires in April 2001, ministers made public a draft FTAA agreement that included preliminary chapters on all nine negotiating groups: market access, agriculture, intellectual property rights, services, investment, government procurement, competition policy, dispute settlement, and subsidies. Since the seventh Ministerial held in Quito, Ecuador in November 2002, the United States and Brazil have assumed co-chairmanship of the negotiations. How these two countries resolve their outstanding differences will have a huge bearing on the outcome of the FTAA process."

  Library of Congress. Congressional Research Service

  Ahearn, Raymond J.

  2003-07-29
• North Korea's Nuclear Weapons: How Soon an Arsenal? [Updated July 29, 2003]

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  "In December 2002, North Korea ended the 8-year-old freeze on its nuclear program by expelling inspectors and reopening its plutonium production facilities. The CIA assessed that North Korea could produce 5-6 weapons by mid-2003, in addition to 1 or possibly 2 weapons it might already have. In April 2003, North Korean officials claimed they had completed reprocessing all 8000 spent fuel rods (containing enough plutonium for 5-6 weapons), a claim which few believed. Since then, however, there are indicators that some reprocessing has occurred. This report, which will be updated as warranted, describes North Korea's steps in producing plutonium nuclear weapons."

  Library of Congress. Congressional Research Service

  Squassoni, Sharon A.

  2003-07-29
• North Korean Crisis: Possible Military Options [July 29, 2003]

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  North Korea has confronted the United States with its decision, failing other security accommodations, to pursue production of nuclear weapons. The Bush Administration has stated that, although the situation is unacceptable, it will pursue its resolution through diplomatic means. Military means, however, could be considered at some point and become a serious issue for Congress. This short report discusses the geography and military balance on the Korean Peninsula, presents the range of military options that might be applied there to specific U.S. political objectives, and assesses possible consequences. Military options discussed are: status quo, improved defensive posture, enforce sanctions, preemptive strike against nuclear facilities, and preemptive war. Also see CRS Issue Brief IB98045 on U.S.-Korean relations and CRS Issue Brief IB91141 on North Korea's nuclear weapons. This report will be updated if major changes occur.

  Library of Congress. Congressional Research Service

  Bruner, Edward F.

  2003-07-29
• Mexico's Congress and July 2003 Elections [July 28, 2003]

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  "On July 6, 2003, Mexico held nation-wide elections to renew the membership of the 500-seat Chamber of Deputies and to elect local officials in ten states. Coming at the mid-point of the six-year term of President Vicente Fox, these elections, by determining the balance of power in the lower chamber of Congress, significantly affect President Fox's ability to enact his programs and set the stage for coming presidential elections in 2006. Official results indicate that President Fox's conservative National Action Party (PAN) fared poorly, while the long-ruling centrist Institutional Revolutionary Party (PRI) secured a dominant position in Congress, and the leftist Party of the Democratic Revolution (PRD) increased representation in Congress and consolidated local control in the Mexico City Federal District. This suggests that President Fox will have even more difficulty enacting his proposals in the new Congress. This short report provides background on the functioning of the Mexican Congress and summarizes the results of the 2003 election. The report will be updated to indicate the result of pending action in the electoral tribunal. For further information, see CRS [Congressional Research Service] Report RL31876, 'Mexico-U.S. Relations: Issues for the 108th Congress.'"

  Library of Congress. Congressional Research Service

  Storrs, K. Larry (Keith Larry), 1937-

  2003-07-28
• India-U.S. Economic Relations [Updated July 28, 2003]

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  India's economy has shown relatively healthy growth since 1991 when an economic crisis caused the government to implement various economic reforms. Yet many analysts view India's economy as falling below its potential, especially when compared to a country such as China, which has achieved far greater economic success over the past decade. The United States is India's largest trading partner. India is a relatively minor U.S. trading partner, although U.S. officials argue that it could be a potentially largemarket if India implemented further economic reforms. This reportwill be updated as events warrant.

  Library of Congress. Congressional Research Service

  Morrison, Wayne M.; Kronstadt, K. Alan

  2003-07-28
• Iran: Current Developments and U.S. Policy [Updated July 25, 2003]

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  "While continuing previous U.S. Administrations' policies of containing Iran while pursuing limited engagement with it, the Bush Administration is evaluating whether or not to move more toward a regime change policy, and how to prevent Iran from obtaining nuclear weapons capability. Iran's efforts to acquire weapons of mass destruction and delivery means, coupled with its support of terrorist groups, have long been key U.S. concerns. Another U.S. concern is that Iran continues to provide material support to Hizballah in Lebanon and to Palestinian groups that oppose the Arab-Israeli peace process. Iran's human rights practices are frequently criticized by U.S. officials and Members of Congress. Thus far, the Bush Administration has continued most aspects of the containment policies toward Iran that characterized preceding administrations. The United States has consistently worked with its allies to prevent arms and advanced technology sales to Iran and to limit Iran's influence over regional energy flows. U.S. purchases of Iranian crude oil and U.S. company investments in Iran remain barred. The Iran-Libya Sanctions Act (ILSA) was renewed for another 5 years on August 3, 2001 (H.R. 1954, P.L. 107-24)."

  Library of Congress. Congressional Research Service

  Katzman, Kenneth

  2003-07-25
• U.S.-Chile Free Trade Agreement: Economic and Trade Policy Issues [Updated July 25, 2003]

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  "On June 6, 2003, the United States and Chile signed a long anticipated bilateral free trade agreement (FTA) in Miami, Florida, concluding a 14-round negotiation process that began on December 6, 2000. The House Ways and Means and Senate Finance Committees held informal markups on the draft implementing legislation on July 10, 2003. On July 15, the U.S.-Chile Free Trade Agreement Implementation Act (H.R. 2738/S. 1416) was sent to Congress. The next day, the House and Senate Judiciary Committees approved the bill by voice vote. On July 17, the House Ways and Means and Senate Finance Committees also approved it by voice vote. On July 24, the House debated and passed H.R. 2738 (270-156). The Senate is expected to debate and vote on the companion bill, S. 1416, the week of July 28. [] The bilateral negotiation was a challenging exercise for both countries and although a broad-based agreement was struck, there are a few issues that remain somewhat unsettling for many Members of Congress, as expressed at hearings in both the House and the Senate. Overall, because there are now multiple FTAs being contemplated, there is a concern over the implications of one bilateral becoming a 'template' for others that follow. In the case of the U.S.-Chile FTA, attention is focused on language governing dispute resolution treatment of labor and financial transfers, as well as the temporary entry for business persons. These and other issues are discussed in this report, which provides background and analysis on Chile's economy, trade relations, and the bilateral FTA. It will be updated periodically."

  Library of Congress. Congressional Research Service

  Hornbeck, J. F. (John F.)

  2003-07-25
• China-U.S. Relations: Current Issues for the 108th Congress [Updated July 25, 2003]

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  "In the wake of the September 11, 2001 terrorist attacks against the United States, U.S. and People's Republic of China (PRC) foreign policy calculations appeared to change. The Administration of George W. Bush assumed office in January 2001 viewing China as a U.S. 'strategic competitor.' Administration officials faced an early test in April 2001 when a Chinese naval aviation jet collided with a U.S. Navy reconnaissance plane over the South China Sea. After September 11, though, U.S. officials came to see Beijing as a potentially helpful ally in the fight against global terrorism, while PRC officials saw the anti-terrorism campaign as a chance to improve relations with Washington and perhaps gain policy concessions on issues important to Beijing, such as on U.S. arms sales to Taiwan. U.S. anti-terror priorities led some to suggest that cooperation against terrorism could serve as a new strategic framework for Sino-U.S. relations. […] The purpose of this report is to provide background for and summarize current developments in U.S.-PRC relations, including current and pending congressional actions involving the PRC. This report will be updated regularly as new developments occur."

  Library of Congress. Congressional Research Service

  Dumbaugh, Kerry

  2003-07-25
• Andean Regional Initiative (ARI): FY2003 Supplemental and FY2004 Assistance for Colombia and Neighbors [Updated July 25, 2003]

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  "In 2003, Congress is considering President Bush's requests for FY2003 supplemental and FY2004 funding for Colombia and six regional neighbors in a continuation of the Andean Regional Initiative that was launched in 2001. The region has been viewed as important primarily because it produces virtually all of the world's cocaine and increasing amounts of heroin. Moreover, the stability of Colombia and the region is threatened by Colombia's longstanding guerrilla insurgency and rightist paramilitary groups, which are both believed to be largely funded by 'taxes' on illegal narcotics cultivation and trade."

  Library of Congress. Congressional Research Service

  Storrs, K. Larry (Keith Larry), 1937-; Veillette, Connie

  2003-07-25
• Energy Efficiency: Budget, Oil Conservation, and Electricity Conservation Issues [July 24, 2003]

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  "Energy security, a major driver of federal energy efficiency programs in the past, came back into play as oil and gas prices rose late in the year 2000. The terrorist attack of September 11, 2001, and the Iraq war of 2003 heightened concern for energy security and raised further concerns about the vulnerability of energy infrastructure and the need for alternative fuels. Further, the 2001 electricity shortages in California and the high natural gas prices in 2003 brought a renewed emphasis on energy efficiency and energy conservation to dampen electricity (and natural gas) demand. Also, worldwide emphasis on environmental problems of air and water pollution and global climate change, and the related development of clean energy technologies in western Europe and Japan, may remain important influences on energy efficiency policymaking. Concern about technology competitiveness may also remain a factor in the debate. In the 108th Congress, debate over energy efficiency programs is focusing on the budget, oil, natural gas, and electricity issues, and provisions in the omnibus energy policy bill, H.R. 6 and S. 14."

  Library of Congress. Congressional Research Service

  Sissine, Fred J.

  2003-07-24
• War On Drugs: Legislation in the 108th Congress and Related Developments [Updated July 27, 2003]

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  "In recent years, Congress has taken an increasingly punitive stance toward drug addicts and casual users alike. A different approach has been taken by certain countries in Europe and elsewhere that are experimenting with less restrictive policies such as decriminalization and 'harm reduction' measures. The 108th Congress will receive strong encouragement from the Executive Branch to continue the all-out war on drugs. [...] Other drug control issues likely to be taken up in the first session include the drug control budget for FY2004 and confirmation by the Senate of a new head of the Drug Enforcement Administration (DEA) due to the move of the previous DEA administrator to the position of Under Secretary for Border and Transportation Security in the new Department of Homeland Security. Additional issues that could be considered by the 108th Congress include state ballot initiatives regarding medical marijuana and drug treatment in lieu of incarceration, the effects of state budget deficits on the states' drug control efforts, and the impact of the anti-terrorism effort on the drug war."

  Library of Congress. Congressional Research Service

  Eddy, Mark

  2003-07-23
• Iraq: Weapons Programs, U.N. Requirements, and U.S. Policy [Updated July 23, 2003]

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  "After asserting that Iraq had failed to comply with U.N. Security Council resolutions that require Iraq to rid itself of weapons of mass destruction (WMD),the Bush Administration began military action against Iraq on March 19, 2003, and the regime of Saddam Hussein fell on April 9. Since then, U.S. teams have been attempting to uncover Iraq's suspected weapons of mass destruction (WMD) stockpiles, but only minor finds of WMD technology have been reported thus far. [...] Iraq was widely deemed non-compliant in other areas, especially human rights issues. A U.S.-led no-fly zone provided some protection to Kurdish northern Iraq after April 1991. Since August 1992, a no-fly zone was enforced over southern Iraq, where historically repressed Iraqi Shiites are concentrated. The zone was expanded in August 1996, but Iraq nonetheless maintained a substantial ground presence in the south. Iraq openly challenged both no-fly zones after December 1998. These enforcement operations ended after the fall of the regime. Since the fall of the regime, U.S. teams have discovered about 60 mass graves containing primarily Shiites and Kurds that Saddam Hussein had characterized as a threat to the regime."

  Library of Congress. Congressional Research Service

  Katzman, Kenneth

  2003-07-23