This hearing was printed under the title "The Marshall Plan Resolution." (b) Thaddeus Kosciuszko.-In September, 1977 the subcommittee held a hearing to consider House Joint Resolution 573, commemorating Gen. Thaddeus Kosciuszko by presenting a memorial plaque in his memory to the people of Poland on behalf of the American people. The subcommittee received testimony from the Honorable Clement J. Zablocki, a Representative in Congress from the State of Wisconsin, and chairman of the Committee on International Relations, and executive branch comments, favoring the adoption of the resolution, were submitted for the record. The subcommittee unanimously approved House Joint Resolution 573 by voice vote, wherepon it was referred to the full Committee on International Relations. (c) The Eastern Mediterranean.-In October 1977, the subcommittee held a hearing on recent developments in Greece, Turkey, and Cyprus. Adm. Stansfield Turner, Director of the Central Intelligence Agency, testified on the general situation in the Eastern Mediterranean, the effects of the loss of U.S. base in Turkey, the status of negotiations on the Aegean Sea controversy and of intercommunal talks on Cyprus, and the situation in Greece, Turkey, and Cyprus. The hearing, in its entirety, was held in executive session and no hearing record was published. (d) The Holy Crown of St. Stephen.-In November, 1977 the subcommittee conducted a hearing on the President's decision to return the Holy Crown of St. Stephen to Hungary. Witnesses both supporting and opposing the return of the Crown appeared before the subcommittee. Testimony was received from three Members of Congress: The Honorable Mary Rose Oakar, a Representative in Congress from the State of Ohio, the Honorable Frank Horton, a Representative in Congress from the State of New York, and the Honorable Bill Frenzel, a Representative in Congress from the State of Minnesota; representatives of the Hungarian-American community; private citizens; and officials of the Department of State. The Department of State gave lengthy testimony on United States-Hungarian relations and several questions were submitted to the Department for answers for the record. The hearing was printed under the title "The Holy Crown of St. Stephen and United States-Hungarian Relations." (e) Soviet Interests and Activities in Africa.-In February 1978, the subcommittee held a joint hearing with the Subcommittee on Africa on Soviet activities and interests in Africa, with particular emphasis on developments in the Horn of Africa. Testimony was heard from State Department officials from the African, Near Eastern, and European bureaus on the conflict in the Horn of Africa, its implications for American foreign policy toward Africa, the Middle East and the Soviet Union. The hearing, in its entirety, was held in executive session and no hearing record was published. Other Activities 1. Briefings with the Department of State. On a weekly basis when Congress was in session, the subcommittee held informal, offthe-record briefings on foreign policv problems affecting nations in Europe and the Middle East. All these briefings, except one (by 38-411-79-10 Mr. Thomas A. Callaghan, of the Georgetown Center for Strategic and International Studies, on standardization in NATO), were given by officials from the Department of State. Topics covered in 1977 included: Recent developments in the Middle East recent developments in Europe; the internal political and economic situation in Egypt: Euro-communism; arms sales policy in the Persian Gulf and the Middle East; the European Community and U.S.-European Community relations: United States-Federal Republic of Germany relations; the political and economic situation in the United Kingdom and U.S.-U.K. relations; the role of Libya, Iraq, and the People's Democratic Republic of Yemen in the Middle East and U.S. relations with those states; the elections in Turkey; coalition politics in Israel; the Spanish elections; the situation in and our relations with the Scandinavian nations: Middle East oil; recent developments in Eastern Europe and United States-Eastern European relations; recent developments in and United States relations with Northern Ireland; recent developments in Greece, Turkey, and Cyprus: Middle East issues at the United Nations and the renewal of the UNEF and UNDOF mandates; assessment of the Greek elections: and prospects for and progress toward Middle East peace negotiations (three briefings). In the briefing on NATO standardization, the BBC Documentary "NATO and the Price of Peace" was shown. Topics covered in 1978 included: The Conference on Security and Cooperation in Europe (Belgrade); U.S.-Yugoslav relations; the French National Assembly elections; U.S.-Romania relations; the current situation in Italy; the Washington NATO summit; recent developments in Iran and Afghanistan (with the Subcommittee on Asian and Pacific Affairs); recent developments in Finland and U.S.-Finnish relations; recent developments in U.S.-Soviet relations; the Bonn economic summit: Middle East peace talks (three briefings); and the situation in Lebanon (four briefings). In the context of these briefings, the subcommittee also met with the Honorable Malcolm Toon, U.S. Ambassador to the Soviet Union, the Honorable Richard Murphy, U.S. Ambassador to Syria (1977), the Honorable John C. West, U.S. Ambassador to Saudi Arabia, and the Honorable Walter J. Stoessel, U.S. Ambassador to the Federal Republic of Germany (1978). 2. Meeting with Secretary of State Vance.-On July 28, 1977, the subcommittee held an off-the-record briefing with Secretary of State Cyrus Vance on his then upcoming trip to the Middle East. 3. Briefing with the Denartment of Defense.-In September 1978, the subcommittee met with Robert Murray, Deputy Assistant Secretary of Defense for Near Eastern, African, and South Asian Affairs, who briefed the subcommittee on security issues in the Middle East. 4. Briefings with the CIA.-During 1977, the subcommittee held three informal executive session briefings with representatives of the Central Intelligence Agency. The first, held May 17, covered developments in Europe; the second, held May 19, covered events in the Middle East; the third, held September 20, analyzed, the situation in the Soviet Union. These briefings assessed the political, economic, and military situation in these areas. 5. Meetings with Foreign Dignitaries.-The chairman of the subcommittee hosted more than a score of meetings during the year with visiting dignitaries from Europe and the Middle East. 6. Study Mission to the Middle East.-The chairman of the subcommittee led a study mission to Israel, Egypt, Syria, and Jordan in July 1977. The purpose of the trip was to seek a better understanding of the many issues affecting the Middle East peace process. The report on the study mission, published in November 1977 and entitled "The Middle East at the Crossroads," contains recommendations on what U.S. policies toward the Middle East should be, a series of conclusions emerging from the study mission, an analysis of some of the major issues of peace in the Middle East, and a description of the visits to each of the four countries concerned. CRS Studies 1. Bases in the Mediterranean. The Congressional Research Service (CRS) of the Library of Congress prepared, at the request of the subcommittee, a study on U.S. military installations in the Mediterranean. The study was requested because of many questions in Congress over the role and utility of U.S. military installations in Portugal, Spain, Italy, Greece, and Turkey. The study was published under the title "United States Military Installations and Objectives in the Mediterranean," on March 27, 1977. 2. The Economies of France, Italy, and the United Kingdom.— CRS prepared a study on the economic situation in France, Italy and the United Kingdom. This study responded to the need for a better understanding of the roots of current difficulties in the economies of three of the United States most important allies and of the implications of these difficulties for American foreign policy. The study was entitled "Economic Conditions in Italy, France, and the United Kingdom," and published February 8, 1978. 3. Arms Transfer and Security Assistance Programs. This CRS study contains a review of the various legislative mechanisms by which Congress oversees the many U.S. security assistance programs. The study, entitled "United States Arms Transfer and Security Assistance Programs," was published on March 21, 1978. 4. The Economy of the Federal Republic of Germany.-CRS prepared a similar study to that on Italy, France and the United Kingdom on the economic situation in the Federal Republic of Germany. This study examines the reasons for West Germany's strong economic position and its implications for the United States. The study, entitled "Economic Conditions in the Federal Republic of Germany," was published on December 29, 1978. GAO Studies In furtherance of both his legislative and oversight responsibilities, the chairman of the subcommittee requested the General Accounting Office (GAO) to prepare studies on several issues of interest to the subcommittee. Reports on the following issues were released in 1977 and 1978; 1. AWACS Sale to Iran.-This classified report analyzes the study conducted by the Department of Defense on Iran's air defense require ments and points to some of its shortcomings. It also reviews the inade quacy of the policy justification presented to the Congress with its submission of the notification of intent to issue a Letter of Offer and Acceptance to Iran for seven AWACS aircraft, and reports the assessment of the Director of Central Intelligence on the possible security risks arising from the proposed sale. An unclassified version of the report, entitled "Issues Concerning The Proposed Sale of The Airborne Warning And Control System E3 to Iran" (July 14, 1977), was included in the print of hearings conducted by the subcommittee and the Subcommittee on International Security and Scientific Affairs on the proposed sale of the AWACS aircraft to Iran (see above). 2. Aid to Egypt.-This unclassified report provides a detailed examination of aid programs in Egypt and concludes that Egypt's capability to absorb and use effectively the substantial economic aid funds provided by the United States is severely limited. The study analyzes some of the problems associated with the use of U.S. assistance to Egypt and makes several recommendations to improve the program. The report which is unclassified, is entitled "Egypt's Capacity To Absorb And Use Economic Assistance Effectively" (September 15, 1977). 3. DSAA Accounting Procedures and the Arms Sales Ceiling.The GAO prepared this interim. unclassified, report on the Defense Security Assistance Agency's (DSAA) accounting procedures for foreign military sales. This particular study concentrated on the Fiscal Year 1977 accounting adjustment (for price and scope changes) to the total FMS figure for that fiscal year. It concluded that the base line figure for Fiscal Year 1977, on which the President's arms sales ceiling was calculated, was overstated, and the ceiling for Fiscal Year 1978 should have been lower. This report was published under the title "Arms Sales Ceiling Based on Inconsistent and Erroneous Data" (April 12, 1978). 4. F-15 Sale to Saudi Arabia. This classified report analyzes the factors which led to the Administration's decision to proceed with the sale of 60 F-15 aircraft to Saudi Arabia. It contains a review of the various Department of Defense studies conducted on Saudi Arabia's air defense needs, as well as a series of appendices which attempt to address some of the concerns that would arise as the Congress considered the prospective sale of these aircraft. This report, entitled "Military, Economic, and Political Factors Concerning the Sale Of F-15s to Saudi Arabia" (May 1, 1978), was also released in an unclassified form. 5. U.S. Aircraft Sales. The foreign military sales of four U.S. aircraft (F-5, F-15, F-16, and F-18) were examined in this classified report. It is the first report on a number of weapon systems which are sold abroad in significant amounts or which have great export potential. An unclassified version ofthis report, "Foreign Military Sales of Defense's F-5, F-15, F-16, and F-18 Aireraft" (May 15, 1978), was released. 6. Sales of Selected Weapons Systems. In a second study of weapons which the United States exports in significant numbers abroad, the GAO examined the actual and potential exports of nine weapon systems, the Dragon, TOW, Improved Hawk, Redeye, Harpoon and Maverick missiles, the M113 armored personnel carrier, the AH-1 attack helicopter and the M-60 tank. This study not only scrutinizes past and present sales of each weapon system, but also the relationship or arms exports to domestic production and procurement costs. An unclassified version of this report, "Foreign Military Sales of Selected Weapon Systems" (August 9, 1978) was also released. 7. Other Studies.-During 1978, the chairman of the subcommittee also requested the preparation of three other GAO reports on issues of interest to the subcommittee. These subjects include: 1) a broader examination of DSAA accounting procedures; 2) a report on the foreign military sales process, examining each step of the process prior to the presentation of a Letter of Offer for Congressional review; and 3) a study of the U.S.-Saudi Arabian Joint Commission on Economic Cooperation, investigating its mandate, operations and performance. These reports will be completed and released in 1979. Hearings F. Subcommittee on Asian and Pacific Affairs 1. Foreign Assistance Legislation, Fiscal Year 1978.-Three days of hearings were held in March of 1977 on economic and military assistance in Asia and the Pacific. Witnesses included Assistant Secretary of State Designate Richard C. Holbrooke, from the Bureau of East Asian and Pacific Affairs; Lt. Gen. Howard M. Fish, Director, Defense Security Assistance Agency; Michael H. B. Adler, Acting Assistant Administrator, Bureau for Asia, Agency for International Development; and Adolph Dubs, Deputy Assistant Secretary, Near Eastern and South Asian Affairs, Department of State. The hearings were printed as part 6 in the volume entitled "Foreign Assistance Legislation for Fiscal Year 1978." 2. Foreign Assistance Legislation, Fiscal Year 1979.-Public hearings on economic and military assistance to Asia and the Pacific were held on March 7, 9, 14, 16, and 22, 1978. Testifying before the subcommittee were: the Honorable Richard C. Holbrooke, Assistant Secretary of State for East Asian and Pacific Affairs; the Honorable John Sullivan, Assistant Administrator for Asia, Agency for International Development; Adolph Dubs, Deputy Assistant Secretary of State for Near Eastern and South Asian Affairs; General Thomas Pickney, Director, East Asian and Pacific region, Office of the Assistant Secretary of Defense for International Security Affairs; the Honorable Stephen J. Solarz (D.-N.Y.); the Honorable Peter B. Bensinger, Administrator, Drug Enforcement Administration; and Mathea Falco, Senior Advisor to the Secretary of State and Coordinator for International Narcotics Matters. The hearings were published as: "Foreign Assistance Legislation for Fiscal Year 1979, Part 6: Economic and Military Assistance in Asia and the Pacific." 3. East Timor.-A joint hearing was held with the Subcommittee on International Organizations on March 23, 1977 on human rights in |