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Washington's Agonizing Decision: To Extend or Revoke China's Most-Favored-Nation Trade Status

Washington's Agonizing Decision: To Extend or Revoke China's Most-Favored-Nation Trade Status
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Results of the Inspector General's Audit of AID

Congress soon will consider a $5.9 billion funding request from the Agency for International Development (AID), the State Department agency that provides foreign aid to less developed countries in an attempt to alleviate Third World poverty. Congress and the Bush Administration also are considering a revision of the 1961 Foreign Assistance Act, which governs AID. While AID deserves funding, it needs a clear revised statement of its goals even more. That AID remains plagued by problems is apparent from recent audits by AID's Inspector General (IG). Among the audits: Sri Lanka. In several AID projects, among them a rice research and a water management project, AID contributions were made under terms of a contract with the government of Sri Lanka, which agreed to match U.S. aid. The IG audit raised considerable questions about the amount of Sri Lankan funds actually contributed. In some cases there were no records of contributions at all. Reports the IG: "USAID/Sri Lanka did not ....

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