Conflict may delay hurricane aid

WASHINGTON - The House yesterday narrowly approved a bill to provide nearly $1 billion in disaster assistance for Central American countries still struggling to recover from tropical storm Mitch.

The Senate passed a similar bill Tuesday and lawmakers expressed hope that the measure - which also includes aid for U.S. farmers hit by economic hard times - could make money available in time for the spring planting season.

But differences in the House and Senate versions of the legislation - as well as continuing disagreements between President Clinton and Congress over contentious side issues - may delay release of the funds for weeks. Indeed, the bill sets up the first budget confrontation of the year between Clinton and the Republican-controlled Congress.

The House approved the measure 220-211, but passage came only after GOP leaders frantically twisted arms to win over conservative Republicans troubled because the cost of the aid package was not fully offset by cuts in other programs.

But Clinton has threatened to veto the bill partly because of the cuts it would make in other programs - including U.S. backing for international development banks.

Republicans seemed unfazed by Clinton's veto threats.

"Let him cut off the aid to these needy and desperate people in Central America," said Rep. Sonny Callahan (R-Ala.) "He's not going to do it."

The debate foreshadows what will likely be a bitter, yearlong battle over spending priorities even though the federal budget is swimming in surpluses. Republicans have pledged not to use that surplus for anything but saving Social Security, meaning they will have to pair every decision to increase spending with cuts in other areas.

Differences between House and Senate versions of the bill will be worked out by a conference committee, but those talks likely will not even begin until mid-April because Congress is about to begin a two-week recess.

The cornerstone of the bill is Clinton's request for $956 million to help Honduras, Nicaragua and other Central American nations rebuild their infrastructure and otherwise recover from the ravages of tropical storm Mitch, which last fall caused an estimated $8.5 billion in damage and claimed 9,000 lives. The United States already has provided about $300 million in relief.

Republicans back Clinton's request for additional aid, saying it is necessary to safeguard this country's past investments in the political stability of the region.

The bill also includes $152 million for U.S. farmers whose commodity exports have suffered from the collapse of markets in other parts of the world and $80 million for the Immigration and Naturalization Service to help pay for detention centers at the U.S. border. Lawmakers want to beef up these centers because of concern that the lingering effects of Mitch will spark a flood of illegal immigrants into the United States.

Other provisions in the measure would authorize $100 million requested by Clinton to shore up the new regime in Jordan and $10 million to help Columbia recover from last year's earthquake.

The House bill would, among other things, cut $648 million the United States has put up to guarantee loans from the World Bank and other international development banks. Administration officials have threatened a veto over the provision, saying it would undermine those banks and set back efforts to help troubled Asian economies.

Republicans argued the proposed cut would have little effect because it represented only a fraction of the $12 billion the United States has committed to loan guarantees and would not be spent anyway.

03-25-99