December 17, 1973
Page 41948
Mr. MUSKIE. Mr. President, this amendment to the bill before us, the1974 foreign assistance appropriation bill (H.R. 11771), would appropriate the full $36.5 million contained in the authorization – an amount which has already been included in the appropriation bill as passed by the House – for resettlement assistance to Soviet Jewish refugees.
Last year, Mr. President, I introduced a bill with Senators RIBICOFF, JAVITS, and
SCHWEIKER as principal cosponsors, to authorize $85 million for such assistance, This legislation, which was cosponsored by over 40 Senators, was approved by the Congress and was followed by an appropriation of $50 million.
I have been gratified by the results of this program thus far. After the initial appropriation last year, the Department of State which administers the program carried out a careful investigation into the best means of using the funds appropriated by Congress. After extensive discussions with officials of U.S. voluntary agencies and members of the Israeli Embassy, an officer of the Department's Office of Refugee and Migration Affairs visited Israel, Vienna – the Western European transit center for these migrants – and Geneva to complete discussions with officials of the Israeli Government, the Jewish Agency for Israel – JAI – the Intergovernmental Committee for European Migration – ICEM – and the Refugee, Migration and Red Cross section of the U.S. Mission to the U.N., Geneva. As a result of these discussions, the Department decided to contract with the United Israel Appeal – UIA – a U.S. voluntary agency for the bulk of the operation of the assistance programs.
The first agreement between the State Department and the United Israel Appeal was signed on April 6 of this year in a ceremony I was pleased to attend. That agreement provided a grant of $31 million to be used for the following purposes:
First. En route care and maintenance costs for 30,000 Refugees, January 1 to December 31, 1973 -----------------------------------------------------------------------------------------$1,200,000;
Two. Construction or enlargement of transit center in Vienna, Austria -------$500,000;
Third. Construction or acquisition of new absorption centers and hostels –$4,000,000;
Fourth. Construction or acquisition of hospital wing---------------------------$2,000,000;
Fifth. Construction or acquisition of apartments and/or mobile homes-----$15,700,000;
Sixth. University scholarships------------------------------------------------------$1,100, 000;
Seventh. Training and retraining for artisans and technicians------------------$1,000,000;
Eighth. Maintenance costs for on-the-job trainees-------------------------------$1,250,000; and
Ninth. Maintenance costs at Ulpanim, absorption centers and hostels--------$4,250,000.
This agreement was supplemented on June 27 of this year with another grant of $13 million for these same programs. Mr. President, I ask unanimous consent that the text of these agreements be printed in the RECORD at this point.
There being no objection, the material was ordered to be printed in the RECORD, as follows:
REFUGEE RESETTLEMENT GRANT AGREEMENT
This agreement, dated April 6, 1973, is between the Government of the United States of America, acting through the Department of State (the "Department"), and the United Israel Appeal, Inc., a voluntary, nonprofit agency organized and existing under the Membership Corporation Law of the State of New York, with principal offices at 515 Park Avenue, New York, New York 10022 (the "Grantee").
ARTICLE I. THE GRANT
Section 1.1. The Grant. Pursuant to section 101(b) of the United States Foreign Relations Authorization Act of 1972 and related appropriation legislation, and subject to the terms and conditions of this agreement, the Department hereby grants to the Grantee an amount not exceeding thirty-one million United States dollars ($31,000,000) to furnish assistance for the resettlement in Israel of Jewish or other similar refugees from the Union of Soviet Socialist Republics ("Refugees").
Section 1.2 Use of Funds. (a) The proceeds of this grant shall be used for (i) care and maintenance of, and construction or enlargement of a transit center for, Refugees in Vienna, Austria enroute to Israel, (ii) education, training and retraining of Refugees, and (iii) construction and procurement of new housing, a hospital wing, and absorption centers and hostels for Refugees. Grant proceeds shall be allocated to and among the programs specified in section 1.2 (b), below, and described more fully in Article II (the "Programs").
(b) The Programs and the maximum amount of this grant to be allocated to each shall be as follows:
Program Amount
(1) Enroute care and maintenance costs for 30,000 Refugees, Jan. 1 to Dec. 31,1973-------------------------------------------------------------------------------------------------------$1,200,000
(ii) Construction or enlargement of transit center in Vienna, Austria--------$500,000
(iii) Construction or acquisition of new absorption centers and hostels--- $4,000,000
(iv) Construction or acquisition of hospital wing------------------------------$2,000,000
(v) Construction or acquisition of apartments and/or mobile homes------$15,000,000
(vi) University scholarships------------------------------------------------------ $1,100,000
(vii) Training and retraining for artisans and technicians---------------------$1,000,000
(viii) Maintenance costs for on-the-job trainees-------------------------------$1,250,000
(ix) Maintenance costs at Ulpanim, absorption centers and hostels--------$4,250,000
Section 1.3 Reallocations. Funds may be adjusted between Programs listed in section 1.2(b) provided (a) prior written approval therefor shall have been received by the Grantee from the Department, (b) each increase in the amount allocated to a Program shall be offset by an equal reduction in the amount allocated to one or more other Programs, and (c) the aggregate of such increases shall not exceed $3,100,000.
ARTICLE II. THE PROGRAMS
Section 2.1 Enroute Care and Maintenance. Grantee will provide $40 to the agency or organization administering the transit center in Vienna, Austria for each Refugee received there between January 1 and December 31, 1973, inclusive. Such funds shall be used solely and directly for the care and maintenance of Refugees enroute to Israel and for other operating expenses of the center directly related to the care and maintenance of Refugees.
Section 2.2 Transit Center. The Grantee shall construct a new facility or remodel and/or enlarge the present transit center outside Vienna, Austria for use by Refugees enroute to Israel. The Grantee shall contribute not less than $500,000 toward this Program from sources other than this grant. The Program shall begin on or before June 15, 1973 and be completed by June 30, 1975 .
Section 2.3 Absorption Centers and Hostels. The Grantee shall acquire or construct new facilities for housing (a) Refugee families newly arrived in Israel, one or more members of which are receiving language or other training for a limited period prior to more permanent settlement and (b) Individual Refugees similarly receiving language or other training for a limited period. Such housing is referred to in this agreement as "absorption centers" and "hostels", respectively, and is not intended for permanent occupancy by Refugees or other persons. Formal commitment or expenditure of funds for these purposes by the Grantee after January 1, 1973 shall be considered as a commitment or expenditure for purposes of this grant.
Section 2.4 Hospital Wing. The Grantee shall acquire or construct new hospital facilities so located and equipped as to meet the medical requirements of Refugees. Such facilities shall be constructed and equipped in accordance with the most modern standards applied under similar circumstances in Israel. Formal commitment or expenditure of funds by the Grantee for these purposes after January 1, 1973 shall be considered as a commitment or expenditure for purposes of this grant.
Section 2.5 Permanent Housing. The Grantee shall acquire or construct new apartment buildings and, if deemed feasible and desirable by it, new mobile homes, to be used for housing in the settlement of Refugees. Such housing shall be designed and constructed in accordance with good architectural and engineering standards and in any case in accordance with standards at least equal to those generally applied in surrounding locations. Formal commitment or expenditure of funds by the Grantee for these purposes after January 1, 1973 shall be considered as a commitment or expenditure for purposes of this grant.
Section 2.6 Scholarships, Training and Retraining. The Grantee will make available to appropriate agencies and institutions in Israel the amounts specified in section 1.2(b) (vi) and (vii), above, to provide (a) university education for qualified student Refugees and (b) training and retraining as artisans and technicians for Refugees with appropriate skills and aptitudes. Funds provided by the Grantee pursuant to this section 2.6 shall be used solely and directly for educational and training services and shall not be employed to assist in the maintenance or care of Refugees or for any other purpose. Formal commitment or expenditure of funds by the Grantee for these purposes after November 1, 1972 shall be considered as a commitment or expenditure for purposes of this grant.
Section 2.7 Maintenance Costs in Israel. (a) The amount provided for in section 1.2(b) (viii) shall be employed to supplement the incomes of Refugees receiving on-the-job training whose incomes are lower than those of persons similarly employed in Israel on a full-time basis. Such payments shall not be made available to Refugees receiving maintenance costs under section 2.7 (b), below, and shall be administered in accordance with the principles and standards of similar programs presently existing in Israel.
(b) The amount provided for in section 1.2(b) (ix) shall be employed for the maintenance and care of Refugees resident at Ul-panim (as the term is generally employed in Israel at the date hereof) and at absorption centers and hostels (as described in section 2.3, above).
(c) Maintenance costs may be made available through one or more agencies or organizations responsible for the administration of the Programs or facilities referred to in this section 2.7, but such amounts shall be employed solely and directly for income supplements for or the care and maintenance of Refugees and shall not be employed in any other manner including, but not by way of limitation, for general administrative or overhead expenses of administering agencies and organizations. Formal commitment or expenditure of funds by the Grantee for purposes specified in section 1.2(b) (viii) and (ix) after November 1, 1972 shall be considered as a commitment or expenditure for purposes of this grant.
ARTICLE III. DISBURSEMENT
Section 3.1 Disbursements. (a) Not later than 15 days after the date of this agreement, the Department will deliver to a representative of the Grantee designated in accordance with section 3.2(b) (i), below, at the Department's offices in Geneva, Switzerland its check or checks in the amount of ten million United States dollars ($10,000,000) payable to the "United Israel Appeal, Inc."
(b) Subsequent disbursements will be made in the same manner at the same place as follows:
(i) On May 15,1973-----$10,000,000.
(ii) On June 15,1973----$11,000,000.
Section 3.2 Conditions Precedent. (a) Except as the Department may otherwise agree in writing, each disbursement under section 3.1 shall be subject to fulfillment of the representations, warranties and covenants of the Grantee hereunder as of the disbursement date and to receipt by the Department of a certificate executed as of such date for and on behalf of the Grantee by an officer or other duly authorized representative thereof as follows:
"Pursuant to section 3.2 (a) of the Refugee Resettlement Grant Agreement dated April 6, 1973 (the "Agreement") between the United States of America, acting through the Department of State (the "Department"), and the United Israel Appeal, Inc., a voluntary, non-profit agency organized and existing under the Membership Corporation Law of the State of New York (the "Grantee"), the undersigned hereby certifies that he is an officer or other representative of the Grantee duly authorized to execute this certificate, and that to his actual knowledge and belief, based upon a reasonable investigation of the relevant facts and circumstances, there have been fulfilled as of the date hereof all representations, warranties and covenants of the Grantee required by the Agreement to be fulfilled at such date. This certificate is executed for and on behalf of the Grantee with the understanding that the Department will rely on the statements contained herein for purposes of section 3.2 (a) of the Agreement.
"UNITED ISRAEL APPEAL, INC.
"Date__________________ By_______________________
"(print name and title or office)"
(b) In addition, the disbursement provided for in section 3.1 (a) shall be subject to the prior delivery by the Grantee to the Department, in form and substance satisfactory to the Department, of the following:
(i) A statement certified by an officer of the Grantee setting forth the name of its representative authorized to receive disbursements in accordance with section 3.1 together with evidence of such representative's authority and a specimen of his signature certified as to its authenticity; and
(ii) An opinion of counsel satisfactory to the Department that this agreement has been duly authorized or ratified by, and duly executed on behalf of, the Grantee and constitutes the valid and legally binding obligation of the Grantee enforceable in accordance with its terms.
Section 3.3 Proceeds. (a) The proceeds of the initial and of each subsequent disbursement shall be maintained by the Grantee in an interest-bearing account established in its name solely for the purpose. Grantee shall have full control of such account and shall draw thereon to make distributions in connection with the Programs, but all interest earned shall be the property of the Department and shall be transferred to the Department immediately upon receipt by the Grantee.
(b) The Grantee may convert the proceeds of this grant at any time into any other currency at the market rate of exchange prevailing at the place and on the date of conversion. The Department will not make any adjustments or additional disbursements in respect to any change in the rates of conversion among national currencies, whether occuring before or after any disbursement date.
ARTICLE IV. REPRESENTATIONS, WARRANTIES AND ADDITIONAL COVENANTS OF GRANTEE
Section 4.1. Use by Refugees. In order to qualify for receipt of this grant, the Grantee hereby represents and warrants to the Department that (a) amounts provided for in sections 2.1, 2.6 and 2.7 will be expended solely for the benefit of Refugees, (b) that facilities acquired or constructed pursuant to sections 2.2 and 2.5 will be used initially for the benefit of Refugees only, and (c) that there is a reasonable expectation that buildings and facilities acquired or constructed pursuant to sections 2.2, 2.3, 2.4 and 2.5 will be used primarily for the benefit of Refugees for a substantial number of years.
Section 4.2 Commissions. Grantee represents and warrants to the Department that in connection with obtaining this grant and with the implementation of this agreement it has not and will not pay, and to the best of its knowledge there has not been and will not be paid by any other person or entity, any commission, fee or other such payment of any kind whatsoever, except as regular compensation to the Grantee's full time officers and employees or as compensation for bona fide professional, technical or other comparable services at the rate prevailing at the time and place such services were or are rendered.
Section 4.3 Plaques. Upon completion of the transit center Program referred to in section 2.2, and upon acquisition or completion of each absorption center and hostel referred to in section 2.3, the hospital facility referred to in section 2.4 and each apartment building referred to in section 2.5, the Grantee shall cause to be affixed adjacent to the principal entrance of the respective building or facility a durable metal plaque or other suitable marker recognizing the contribution made by the American people in connection therewith. Not less than 90 days prior to completion of the transit center Program and of each building and facility constructed pursuant to sections 2.3, 2.4 and 2.5, and immediately upon acquisition of any such building or facility, the Grantee shall submit for the prior approval of the Department the form, wording and proposed location of the plaque or other marker called for in this section 4.3.
Section 4.4 Location of Facilities and Activities. (a) Grantee covenants that: (i) each building and facility acquired or constructed pursuant to sections 2.3, 2.4 and 2.5 shall be located in territory subject to the administration of the State of Israel prior to June, 1967; (ii) scholarships and training financed pursuant to section 2.6 shall be solely at universities and training schools located in such territory or in the United States of America, and (iii) maintenance costs shall be provided under section 2.7 solely to Refugees living and working or receiving training in such territory or in the United States of America.
(b) No part of this grant shall be used to acquire or construct buildings or facilities pursuant to sections 2.3, 2.4 or 2.5 without the prior written consent of the Department in respect to the geographic location thereof. Such consent shall not be denied without reasonable cause, and requests for such consent shall be acted upon promptly by the Department.
Section 4.5 Ownership of Facilities. The Grantee shall have and retain legal and effective ownership of all buildings and facilities acquired or constructed pursuant to sections 2.3, 2.4 or 2.5, except that such ownership may be transferred with the prior written approval of the Department (a) without consideration, to a private, non-profit organization or (b) by sale at market price to Refugees, the proceeds of which sale may be used by the Grantee for the acquisition or construction of additional buildings or facilities similar to that sold, subject in each case to all the terms and conditions of this agreement applicable to such Programs in the first instance, and further subject to prior notification to the Department and its right, hereby reserved, to require the refund of such proceeds to the United States Government.
Section 4.6 Direct Expenditures. The proceeds of this grant shall be used solely and directly for the Programs as described in this agreement. The Grantee covenants that no part of any distribution made hereunder shall be allocated to or used for the payment of (a) any general, administrative or overhead expense of the Grantee, computed in accordance with accounting principles generally accepted in the United States, nor (b) any such expense, as so computed, of any agency or organization administering Programs unless incurred wholly in connection with such Programs.
Section 4.7 Reasonable Expenditures. Each of the Programs funded by this grant shall be planned and administered by the Grantee in accordance with business standards and practices at least equal to those which would be applied to similar projects undertaken in the same geographical area by reputable and experienced commercial organizations. All property, goods and services acquired by the Grantee or any agent of the Grantee with the proceeds of this grant, whether by purchase, lease or otherwise, shall be acquired at prices not greater than those generally prevailing for similar property, goods and services at the time and place so acquired. Scholarship, training and maintenance Programs shall be administered with full regard for the desirability of meeting the needs of the greatest possible number of Refugees; thus, the amount of expenditure made for each Refugee shall be limited to that actually required to fulfill the purposes of such Programs.
ARTICLE V. REPORTS, RECORDS AND INSPECTIONS
Section 5.1 Reports. (a) On or before 30 days after the last business day of each calendar month, the Grantee shall deliver to the Department a certified statement listing the name and place of origin of each Refugee for which amounts have been expended under section 2.1 during the preceding reporting period, the dates of arrival at and departure from the Vienna transit center, and such other information as the Department may reasonably request.
(b) Within 30 days from the end of each calendar quarter, the Grantee shall submit to the Department a report showing the status of each Program under this agreement as of the end of such quarter. The quarterly reports shall include, for each Program, a statement of total expenditures during the quarter, the purposes for which expenditures were made, and the amount of grant commitment outstanding. The reports shall also include such additional information as the Department may reasonably request. The first quarterly report shall cover the period April 1 through June 30, 1973, and the final report in respect to each Program shall be filed for the quarter during which such Program is completed.
Section 5.2 Annual Financial Statement. Within 120 days after each of the Grantee's fiscal years during which any Program remains incomplete, the Grantee shall submit to the Department three copies of its annual financial statement prepared in accordance with accounting principles generally accepted in the United States and approved by a certified public accountant acceptable to the Department.
Section 5.3 Records; Inspection. (a) The Grantee shall maintain at its principal offices in New York City full and complete records and books of accounts in accordance with accounting principles generally accepted in the United States covering financial details applicable to each Program, whether or not actually administered by the Grantee itself. Grantee's records shall include copies of all solicitations made for bids or quotations for commodities and services procured under this grant; negotiated agreements; all quotations or bids received; suppliers' commercial invoices; bills of lading or other evidence of shipment for commodities procured in the United States; and, as applicable, such other pertinent documents related to procurement as sales and service contracts and Grantee's substantiation for procurement at other than the lowest price or for proprietary procurement. Such records and, where necessary, additional records shall be maintained in a manner that will permit verification of the Grantee's compliance with its representations, warranties and obligations contained in this agreement, including in particular, but not by way of limitation, its obligations under section 4.7, above.
(b) The Department and the Comptroller General of the United States, and any of their authorized representatives, shall have the right to examine, audit and copy, at all reasonable times, all such records and books of account referred to in section 5.3 (a) and all other documents or reports pertaining to this grant or the Programs. All such books and records shall be maintained and available for inspection for at least six years after the date of the last disbursement by the Department.
(c) Additional records shall be maintained by the Grantee at its principal offices in New York City, and shall be made available for inspection under the terms set forth in section 5.3(b), as follows:
(i) Upon the acquisition or completion of permanent housing pursuant to section 2.5, a listing of the name and place of origin of each head of family (or sole occupant) occupying the quarters, the number of family members living with each head of the family, and such other information as the Department may reasonably require, such listing to be maintained and available for inspection for a period of three years following such acquisition or completion.
(ii) In respect to scholarship and training Programs, a listing of the name and place of origin of each person benefitting therefrom, the place and type of education or training, and such other information as the Department shall reasonably require, such listing to be maintained and available for inspection so long as such Programs shall be financed under this grant.
(iii) In respect to maintenance costs under section 2.7, a listing of the name and place of origin of each person receiving or benefitting from such maintenance, the type of training being received, and such other information as the Department shall reasonably require, such listing to be maintained and available for inspection so long as such maintenance is provided under this grant.
ARTICLE VI MISCELLANEOUS
Section 6.1 Termination of Disbursements. In addition to its rights under section 3.2, the Department may, at its discretion, decline to make disbursements under this agreement if it shall determine that (a) any disbursement would be in violation of any provision of the laws of the United States or (b) an event has occurred which in the Department's judgment makes it improbable that the purposes of this grant will be attained or that the Grantee will be able to perform its obligations hereunder.
Section 6.2 Refunds. (a) If the Department determines that any disbursement made to the Grantee hereunder is in violation of United States law or has been applied by the Grantee other than for Programs in accordance with this agreement, the Department shall so notify the Grantee in writing. The Grantee shall be allowed 30 days from the date of such notice to correct the violation or default, and shall notify the Department in writing of the corrective action taken by it. If corrective action satisfactory to the Department is not taken within the 30 day period, the Grantee shall take appropriate action to minimize all expenditures from such disbursement and shall cancel outstanding obligations financed thereby. After payment of expenditures which cannot be eliminated and obligations which cannot be cancelled, and in any case not more than 90 days after the date of the Department's notice, Grantee shall refund to the Department the unexpended portion of such disbursements determined to have been made in violation of United States law or to have been applied to expenditures in violation of this agreement.
(b) Without limiting any other rights the Department or the Government of the United States may have under this agreement, the Grantee agrees to compensate the Government of the United States for any costs or damages incurred by it as a result of any failure of the Grantee to comply with the provisions of section 5.3.
Section 6.3 Use of Representatives. (a) All actions required or permitted to be performed or taken by the Grantee may be performed by one or more duly authorized agents of the Grantee acceptable to the Department. By an agreement originally executed October 25, 1960 between The Jewish Agency for Israel Inc., New York and The Jewish Agency for Israel, Jerusalem ("JAI"), presently in force between the Grantee and The Jewish Agency for Israel, Jerusalem (copies of the original agreement and related subsequent documentation being attached hereto as Exhibit 1), the JAI is designated by the Grantee as its exclusive Operating Agent in all matters concerned with, inter alia, "rendering aid and assistance to Jewish men, women and children to immigrate into Israel [and] their absorption, rehabilitation and resettlement therein" (Exhibit 1, Article I, paragraph a). Accordingly, the Department approves the JAI as the agent of the Grantee for purposes of this section 6.3(a).
(b) The designation or employment by the Grantee of one or more agents, including the JAI, in accordance with section 6.3(a), above, shall not relieve the Grantee of any obligation under this agreement and shall not have the effect on substituting such agent in place of the Grantee as a party to this agreement for any purpose.
Section 6.4 Sovereign Immunity; Non-Liability. (a) This grant is made as a public and sovereign act by the Government of the United States of America, and no waiver of the sovereign immunity of the Government of the United States is intended by it or shall be claimed against it in connection with any matter arising under or out of this agreement.
(b) Without in any manner limiting or derogating from the provisions of section 6.4(a), above, the Grantee hereby indemnifies and agrees to hold harmless the Government of the United States of America, the departments and agencies thereof, and its officials and agents acting in their official capacities, for any and all liability arising under this agreement or in connection with any matter provided for herein.
Section 6.5 Officials Not to Benefit. No member or delegate of the United States Congress, nor any official of or other person employed by the United States Government, shall receive, directly or indirectly, any part of the proceeds of this grant or any benefit derived therefrom.
Section 6.6 Governing Law. This agreement shall be governed by and construed in accordance with the law of the State of New York.
Section 6.7 Entire Agreement. This agreement constitutes the entire agreement of the parties hereto concerning this grant, and it replaces and renders void any other agreement or understanding, whether written or oral existing between the parties concerning the subject matter of this agreement or any aspect thereof.
Section 6.8 Communications. Except as otherwise provided herein, any document and any notice, request or other communication given, made or delivered by the Department or the Grantee pursuant to this agreement shall be in writing and shall be deemed to have been duly given, made or delivered to the party to which it is addressed when actually delivered by hand, mail, telegram, cable or radiogram as follows:
(a) To the Department in Washington, D.C. Special Assistant to the Secretary for Refugee and Migration Affairs, Room 7430, United States Department of State, Washington, D.C. 20520, The United States of America.
(b) To the Department in Geneva – Counselor, Refugee, Migration and Red Cross Unit, United States Mission to the European Office of the United Nations and Other International organizations, 80 Rue du Lusanne, Geneva, Switzerland.
(c) To the Grantee – Executive Vice-Chairman, United Israel Appeal, Inc. 515 Park Avenue, New York, New York 10022. The United States of America.
or such other address as either of the parties shall have designated by notice given as herein required.
In witness whereof, The Department and the Grantee, acting through their duly authorized representatives, have caused this agreement to be executed on their behalf and delivered as of the date first written above.
THE UNITED STATES OF AMERICA,
FRANK L. KELLOGG,
Special Assistant to the Secretary for Refugee and Migration Affairs,
Department of State.
UNITED ISRAEL APPEAL, INC.,
MELVIN DUBINSKY,
National Chairman and President.
GOTTLIEB HAMMER,
Executive Vice-Chairman.
SUPPLEMENT NO. 1 TO REFUGEE RESETTLEMENT GRANT AGREEMENT
This agreement, dated June 27, 1973, is between the Government of the United States of America, acting through the Department of State (the "Department"), and the United Israel Appeal, Inc., a voluntary, non-profit agency organized and existing under the Membership Corporation Law of the State of New York, with principal offices at 515 Park Avenue, New York, New York 10022 (the "Grantee").
Section 1 The Supplemental Grant. (a) The purpose of this agreement is to supplement the grant made by the Department in the Refugee Resettlement Grant Agreement between the Department and the Grantee dated April 6, 1973 (the "Grant Agreement").
(b) Pursuant to section 101(b) of the United States Foreign Relations Authorization Act of 1972 and related appropriation legislation, and subject to the terms and conditions of this Supplement No. 1, the Department hereby grants to the Grantee an amount not exceeding thirteen million United States dollars ($13,000,000) to furnish assistance for the resettlement in Israel of Jewish or other similar refugees from the Union of Soviet Socialist Republics ("Refugees").
Section 2 Use of Funds. The Programs and the maximum amount of this supplemental grant to be allocated to each shall be as follows:
[Table omitted]
Section 3 Reallocations. Funds provided under this Supplement No. 1 may be adjusted between Programs for which funds are allocated in section 2, above, provided (a) prior written approval therefor shall have been received by the Grantee from the Department, (b) each increase in the amount allocated to a Program shall be offset by an equal reduction in the amount allocated to one or more other Programs, and (c) the aggregate of such increases shall not exceed $1,300,000.
Section 4 The Programs. The Programs for which this supplemental grant shall be used shall be the Programs described in Article II of the Grant Agreement except as follows:
(a) Funds provided under section 2(i), above, for enroute care and maintenance shall be provided in accordance with section 2.1 of the Grant Agreement except that funds hereunder are provided in respect to Refugees received at the transit center in Vienna, Austria during the period January 1 to December 31, 1974, inclusive.
(b) No funds are provided hereunder for the Programs described in sections 2.2 and 2.4 of the Grant Agreement.
(c) The last sentence of sections 2.3, 2.5, 2.6 and 2.7(c) of the Grant Agreement shall not apply to funds provided under this supplemental grant.
(d) The Program for which funds are granted in section 2(x), above, shall be deemed included within section 2.6 of the Grant Agreement. The Grantee will submit program plans for expenditure of the amount specified in section 2(x), above, for advance approval by the Department.
(e) In order to insure that the Programs for which funds are provided in section 1.2 (b) (vi) of the Grant Agreement and in sections (vi) and (x), above, have a clear United States identity, the beneficiaries of such funds will be informed in writing of their origin, and, in coordination with the United States Embassy in Tel Aviv and the Department, the Grantee will provide publicity in Israel concerning those Programs.
Section 5 Disbursements. (a) The Department shall make disbursement of the funds provided for in this supplemental grant by transfer to the account of the Grantee at a bank designated in writing by the Grantee and acceptable to the Department as follows:
On or about September 17,1973----- $4,000,000
On or about December 17,1973------$ 4,000,000
On or about March 15; 1974----------$5,000,000
(b) Each disbursement provided for in section 5(a), above, shall be subject to the conditions precedent contained in section 3.2(a) of the Grant Agreement, except that the certificate required by that section shall be amended to read as indicated in Exhibit 1 hereto.
(c) In addition, the disbursement provided for in section 5(a) (1) , above, shall be subject to the prior delivery by the Grantee to the Department of an opinion of counsel, in form and substance satisfactory to the Department, that this agreement has been duly authorized or ratified by, and duly executed on behalf of, the Grantee and constitutes the valid and legally binding obligation of the Grantee enforceable in accordance with its terms. The certification provided for in section 3.2(b) (1) of the Grant Agreement shall not be required in the case of this supplemental grant.
Section 6 Inspection. This section 6 shall apply only in the case of contracts and subcontracts the total value of which exceeds $50,000, or the equivalent thereof calculated at official rates of exchange, and to which only private or commercial entities are party. The Grantee undertakes and agrees that all construction and similar contracts and subcontracts entered into after the date hereof by the Grantee, and by all agents, contractors and subcontractors of the Grantee, for the purpose of implementing any provision hereof or of the Grant Agreement shall contain appropriate provisions which:
(a) legally bind such agents, contractors and subcontractors to the record keeping obligations undertaken by the Grantee in section 5.3(a) of the Grant Agreement, except the records of such agents, contractors and subcontractors may be maintained in Israel and in accordance with accounting principles generally accepted in Israel;
(b) accord to the Department, the Comptroller General of the United States and their authorized representatives the legally enforceable right to examine, audit and copy, at all reasonable times, all records. books of account and other documents in the possession of such agents, contractors and subcontractors and pertaining to any Program or other activity funded by this agreement or the Grant Agreement; and
(c) legally bind such agents, contractors and subcontractors, to maintain the documents referred to in section 6(b), above, available for inspection for at least three years after final payment is made under such contract of subcontract.
Section 7 Application of the Grant Agreement. All of the terms and conditions of the Grant Agreement shall remain in effect in respect to the funds granted thereunder. In addition, except where otherwise expressly provided herein, all of the terms and conditions contained in the Grant Agreement are incorporated herein by this reference and shall apply to this agreement, the funds granted hereunder and all matters arising in connection herewith to the same extent as if the funds granted hereunder has been made available to the Grantee in the Grant Agreement.
In witness whereof, The Department and the Grantee, acting through their duly authorized representatives, have caused this agreement to be executed on their behalf and delivered as of the date first written above.
UNITED ISRAEL APPEAL, INC.,
GOTTLIEB HAMMER,
Executive Vice-Chairman.
THE UNITED STATES OF AMERICA,
FRANK L. KELLOGG,
Special Assistant to the Secretary for Refugee and Migration Affairs,
Department of State.
EXHIBIT 1
CERTIFICATE PURSUANT TO SECTION 5 (b) or SUPPLEMENT NO. 1 TO REFUGEE RESETTLEMENT GRANT AGREEMENT
Pursuant to section 5(b) of Supplement No. 1 to Refugee Resettlement Grant Agreement dated June 20, 1973 (the "Agreement") between the United States of America, acting through the Department of State (the "Department"), and the United Israel Appeal, Inc., a voluntary, non-profit agency organized and existing under the Membership Corporation Law of the State of New York (the "Grantee"), the undersigned hereby certifies that he is an officer or other representative of the Grantee duly authorized to execute this certificate, and that to his actual knowledge and belief, based upon a reasonable investigation of the relevant facts and circumstances, there have been fulfilled as of the date hereof all representations, warranties and covenants of the Grantee required by the Agreement to be fulfilled at such date. This certificate is executed for and on behalf of the Grantee with the understanding that the Department will rely on the statements contained herein for purposes of making distributions under the Agreement.
UNITED ISRAEL APPEAL, INC.
Date By
(print name and title or office)
Mr. MUSKIE. Mr. President, this year in testimony before the House and Senate, the administration stated that the $50 million already appropriated for resettlement assistance would be sufficient not only for fiscal year 1973 but for fiscal year 1974 as well. I completely disagree with this assessment.
According to State Department figures, 31,652 Russian immigrants settled in Israel in 1972. Over 31,000 more Russian immigrants have come to Israel thus far in 1973. Moreover, in the last 3 months of this year, the rate of immigration has increased substantially.
All of us are aware of the extraordinary economic burden which has been placed on Israel by her defense requirements and by the most recent war in the Middle East. Israel's defense expenditures even before the war ran close to half of her annual budget, and the Israel taxpayer has been supporting this with one of the highest taxation rates in the world. The financial pinch is aggravated by a sharply rising external debt and growing deficit in foreign exchange reserves. For more than a decade, Israel has had the highest per capita foreign currency debt in the world, and this adverse situation has greatly worsened because of the recent war.
In these economic circumstances, the absorption of over 30,000 new Soviet Jewish refugees per year has imposed an extreme financial burden on Israel. The government of Israel has estimated a total annual cost of $252 million for purposes of resettling 35,000 new immigrants from the Soviet Union. Mr. President, I ask unanimous consent that a breakdown of this cost estimate be printed in the RECORD at this point.
There being no objection, the material was ordered to be printed in the RECORD, as follows:
[In millions of dollars]
ESTIMATED ANNUAL COSTS OF IMMIGRATION AND INITIAL ABSORPTION OF 35,000 PERSONS FROM THE U.S.S.R.
Transportation of immigrants and care en route $19,000
Initial care and absorption (Equipment, furniture and financial aid $6,000
Maintenance in hostels and absorption centers $17,000
Construction of new hostels $3,300
Housing (Construction of apartment dwellings for 10,000 families at $17,500 per apartment) $175,000
Health (Hospitalization, medical services, health insurance) $7,500
Education (Scholarships in secondary schools, special services for professional persons – on the job training – pre-kindergartens) $5,700
Higher Education (University scholarships and fellowships) $7,000
Welfare (Homes for aged, training and retraining of artisans and handicapped, old age grants, sheltered workshops) $1,500
Total $242,000
Source: Government of Israel.
Mr. MUSKIE. Mr. President, I believe that this appropriation of $36.5 million, which has already been approved by the House, is a modest contribution in view of Israel's urgent need and in view of our own generous refugee assistance in the past. It is well to remember that since World War II, the United States has contributed more than $2.8 billion to refugee assistance, directly and through intergovernmental organizations. We spent close to $600 million to assist Cuban refugees. From 1947 to 1951, we contributed $237 million to the International Refugee Organization. In the early 1950's, we contributed almost $85 million to aid Korean refugees. And for Arab refugees, we have contributed more than $500 million. We have never forgotten that we were founded and populated by the refugees of an earlier world. Our commitment to this cause is inscribed on the base of the Statue of Liberty.
Moreover, Mr. President, there is the long history of our concern with persecution on account of religion, and in the last half century, particularly with the persecution of Jews. Beginning in the early 1900's, our national leaders have fought for the freedom and dignity of the world's Jewish community. We played a major role in the creation of Israel; we have been its firm defender ever since.
Finally – and beyond humanitarian concerns – there is our clear self-interest in the health and well-being of Israel. War is not the only danger to a healthy Israel. Economic disaster can accomplish what war could not, if we let it. A country the size of Israel, with its heavy defense burdens, cannot afford the several hundred million dollars that will be required for the anticipated influx of Soviet Jews over and above Israel's normal budget for immigrants – and Israel has already spent enormous sums receiving and integrating hundreds of thousands of Jewish refugees from Middle Eastern countries. For all these reasons, therefore, I believe we must be prepared to help Israel cope with the continuing flow of new immigrants from the Soviet Union.
Mr. President, on behalf of myself and cosponsoring Senators STEVENSON, WILLIAMS, JACKSON, JAVITS, RIBICOFF, McGOVERN, PACKWOOD, HUMPHREY, PELL,
and SCHWEIKER, I urge the Senate to adopt this amendment.