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Debt for Nonproliferation: Legislative Information
On September 30, 2002, President Bush
signed the
Russian Federation Debt for Nonproliferation/
Foreign Relations Authorization Act of 2003.
Battelle Memorial Institute prepared a report entitled Debt for Nonproliferation: A Concept Development Proposal for the Design and Operation of a Russia Nonproliferation Fund in 2002. The report, commissioned by the Nuclear Threat Initiative, explored the availability of debt instruments, studied the construct and operations of successful debt swaps and cooperative Russian programs for lessons-learned, provided a recommended construct for a Russian Nonproliferation Fund, and made recommendations to NTI about a path forward to promote debt for nonproliferation. Battelle utilized the services of a Russian legal firm and a Russian economic analysis NGO for additional research, which are attached as Appendices II and III in a separate file.
The report provides recommendations and options, based on research, as to how a debt exchange could be structured. At the time of this report, debt for nonproliferation was a concept; now, it is a recognized mechanism that can be utilized as a tool to assist in the reduction of weapons of mass destruction. The U.S. Congress passed the Russian Federation Debt for Nonproliferation Act of 2002, which was signed by President Bush in September 2002. The G8 Global Partnership, which commits the G7 to provide 20 billion USD over 10 years to Russia to reduce the threat of WMD, was announced in July 2002. Debt exchange is recommended as a way that G7 members can meet their financial obligations.
Debt
for Nonproliferation
Initiative Background Quick History
Complete text (PDF file) of the
signed bill
Debt for Nonproliferation: Congressional Support
Both the Senate and the House have actively demonstrated support for debt for nonproliferation. On June 27, 2001, the Nuclear Threat Reduction Act of 2001 was introduced in the House. The bill, sponsored by Rep. John M. Spratt (D-SC), and co-sponsored by Rep. Ellen Tauscher (D-CA), declared as U.S. policy the pursuit of several U.S.-Russia cooperative efforts and called for the President to conduct a study of the feasibility of securing new funding for nonproliferation activities in Russia through debt conversion. It also stated that the President "shall consult with appropriate representatives of Russia and other nations whose participation in such a program the President determines to be necessary or desirable."
On December 20, 2001, the Senate unanimously passed the Security Assistance Act, which contained the Debt Reduction for Nonproliferation Act of 2001 (DRNA). The DRNA, sponsored by Senators Joseph Biden (D-DE) and Richard Lugar (R-IN) and co-sponsored by Senator Jesse Helms (R-NC), clearly states that U.S. interests in preventing proliferation and reducing weapon stockpiles are of first priority to U.S. national security. It also acknowledges that while existing nonproliferation programs have made substantial progress, there is still much to be done. More specifically, the DNRA states that new sources of funding, such as debt conversion, are needed in order to fund further nonproliferation efforts in Russia, and that Russia is heavily burdened by Soviet-era debt, severely stressing its budget and diminishing resources available for nonproliferation purposes.
House International Relations Committee
Hearing:
Loose Nukes, Biological Terrorism and Chemical Warfare: Using Russian
Debt to Enhance Security
On July 25, 2002, the House International Relations Committee held hearings to discuss the importance of using debt reduction as a mechanism to lessen the threat of weapons proliferation in Russia. Testimony was given by Undersecretary of State for Economy Alan Larsen; NTI President Charles B. Curtis; Constantine Menges, Ph.D.; Representative Ellen Tauscher (D-CA); and Dr. James Fuller, Director, Pacific Northwest Center for Global Security.
Click below for a PDF version of the committee testimony (2.25 meg) or to view a video record of the event.
President Bush Signs Russian Federation Debt for Nonproliferation Act of 2003 Into Law
On August 29, 2002, the State Department Authorization Act, including the Security Assistance Act containing Debt for Nonproliferation, was cleared by the House and Senate to go to the White House for signature into law. The House/Senate conference removed limits on eligible debt—including $480 million in Lend Lease debt to the US and $2.25 billion in Agricultural Trade and Development Assistance debt to the US—at the request of the Bush Administration.
On September 30, 2002, President Bush signed the Russian Federation Debt for Nonproliferation/Foreign Relations Authorization Act of 2003.
Background of Debt for Nonproliferation Initiative
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Idea initially conceived in July 1999 by Battelle/PNNL as Debt for Ecology under the US NCI |
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Evolved to Debt for Nonproliferation after discussions with U.S. Congress principals |
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Concept presented at ENCI meeting in Como, April 2001; Carnegie Endowment Dialogue in Moscow, December 2001; published in Arms Control Today, January 2002 |
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Battelle/PNNL staff tasked by Nuclear Threat Initiative, July 2001, to explore Debt for Nonproliferation with NGO involvement based on London Club instruments; final report included alternative constructs for U.S./Russian partnership around nonproliferation issues |
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U.S. House International Relations Committee hearings on the Debt Reduction for Nonproliferation Act of 2001 included DOD, Battelle and NTI principals |
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U.S. Senate and House each passed bills in support of debt reduction for nonproliferation |
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House and Senate conference removed limits on eligible debt at request of Bush Administration |
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President Bush signed the Russian Federation Debt for Nonproliferation Act of 2003 on September 30, 2002 |
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Bush Global Partnership
accepted by G7 at Kananaskis, includes debt exchange as a component |
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