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GAO-04-276R 1 (2003-11-17)

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       Accountability * Integrity * Reliability
United States General Accounting Office
Washington, DC 20548




      November 17, 2003

      The Honorable Mitch McConnell
      Chairman
      The Honorable Patrick Leahy
      Ranking Minority Member
      Subcommittee on Foreign Operations
      Committee on Appropriations
      United States Senate

      The Honorable Jim Kolbe
      Chairman
      The Honorable Nita M. Lowey
      Ranking Minority Member
      Subcommittee on Foreign Operations, Export Financing, and Related Programs
      Committee on Appropriations
      House of Representatives

      Subject: Department of State (State) and United Nations Relief and Works
      Agency (UNRWA) Actions to Implement Section 301(c) of the Foreign
      Assistance Act of 1961

      Established in 1949 by the United Nations, UNRWA provides assistance to
      Palestinian refugees in the Middle East. UNRWA assistance is primarily
      education, health, and relief and social services. More than 4 million Palestinian
      refugees are eligible to receive these services in UNRWA's five areas of
      operation-Jordan, Lebanon, Syria, the West Bank, and Gaza.

      In section 301(c) of the 1961 Foreign Assistance Act (PL 87-195) as amended,
      Congress has directed that No contributions by the United States shall be made
      to [UNRWA] except on the condition that [UNRWA] take all possible measures to
      assure that no part of the United States contribution shall be used to furnish
      assistance to any refugee who is receiving military training as a member of the so-
      called Palestine Liberation Army or any other guerrilla type organization or who
      has engaged in any act of terrorism.

      In 2003, Congress approved the Consolidated Appropriations Resolution, 2003 (PL
      108-7), section 580, which required the General Accounting Office (GAO) to report
      to the appropriations committees on State Department compliance with section
      301(c) of the 1961 Foreign Assistance Act and the implementation of procedures
      established to meet State standards for section 301(c). To fulfill this mandate, we


GAO-04-276R UNRWA

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