to build trust and encourage openness. Central to the College's effectiveness are the relationships forged between participants that bridge cultures and nationalities. Full and unobstructed participation by all nations in the region, to include such countries as Indonesia and Cambodia, is essential to achieving this. Complementing the College is a robust conference and seminar program that brings together current leaders from the region to examine topical regional security concerns, including peacekeeping, arms proliferation and the role of nuclear weapons in the region, and energy and water security.

The Center directly serves to further our regional engagement goals in several ways. First, it serves as a resource for identifying and communicating emerging regional security issues, within the constraints of non-attribution. Second, the Center functions as an extremely effective "unofficial" engagement tool to continue critical dialog in cases where official mil-to-mil relations are curtailed. Recent conferences and regional travel involving contact with, or participation by, prominent representatives from China highlight this role. Additionally, the Center frequently coordinates or hosts conferences addressing topical issues of interest to the U.S. Pacific Command or the region. Finally, the Center serves as a forum for articulating U.S. defense policy to representatives from the region. Authorization to waive certain expenses as an incentive for participation, and expanded authority to accept domestic and foreign donations to help defray costs are crucial to the continued success of the Center.

Chairman WARNER. Now, General Pace.

STATEMENT OF GEN. PETER PACE, USMC, COMMANDER IN CHIEF, UNITED STATES SOUTHERN COMMAND

General PACE. Mr. Chairman, members of the committee, it is really an honor to have this opportunity to appear before you this morning, and thank you very much for that.

I would like to reserve most of the time available to answer your questions so we can get to the meat of what you want to know about, sir.

I would like to mention two things up front.

First is to thank you, sir, and the very strong bipartisan support of this committee that has enabled your Armed Forces to be as strong as we are to do what we do. Visits such as that led by Senator Levin and the members of his delegation and Senator McCain and the members of his delegation are very tangible evidence of the concern and leadership of our Congress and this Senate and this committee, and we very much appreciate that.

Second, sir, it is my great honor for the last 6 months to be the Commander in Chief of the U.S. Southern Command. The soldiers, sailors, airmen, marines, and coastguardsmen with whom I serve are absolutely first class, sir. They are wonderful young men and women. It is a distinct honor to serve with them. I would just like to highlight before this committee, sir, that your Armed Forces in this Nation are extremely well-served by the young folks who volunteer today.

With that, sir, I would like to answer your questions. [The prepared statement of General Pace follows:]

PREPARED STATEMENT BY GEN. PETER PACE, USMC

INTRODUCTION

Mr. Chairman and distinguished members of the committee, thank you for this opportunity to present my assessment of security in Latin America and the Caribbean. I would also like to thank the Members of Congress and particularly this committee for your outstanding support to the United States Southern Command (USSOUTHCOM). I appreciate your interest in USSOUTHCOM's area of responsibility (AOR) and the support you have consistently provided to our mission with partner nations in this theater.

Since assuming command of USSOUTHCOM 6 months ago, I have traveled to 21 of the 32 countries and 3 of the 14 separate territories in my assigned AOR, visiting many of the Andean Ridge nations several times. I have met key military and civilian leaders in the region, and I have worked to ensure Southern Command's plans and initiatives are well-coordinated with the Joint Staff, the Office of the Secretary of Defense, and other U.S. government agencies. My visits to our neighboring nations have provided important insights to the region and its leaders, as well as to specific challenges and opportunities.

In this statement, I will provide the committee our strategic assessment of the AOR, highlighting the most serious transnational threats that challenge the growth of democracy in several countries. Next, I will detail our progress in resetting the theater architecture in the post-Panama era, followed by an overview of our engagement efforts and most important requirements. I will conclude by presenting my priorities for the way ahead.

STRATEGIC ASSESSMENT

U.S. Southern Command's AOR includes all of Central and South America, the Caribbean, and surrounding waters, totaling more than 15.6 million square miles. The AOR is divided into four sub-regions: the Caribbean, Central America, Andean Ridge, and the Southern Cone. Total population in the AOR exceeds 404 million people. Twenty-five languages are spoken, and the people practice 10 different religions. The theater is a diverse region, rich in natural resources with largely untapped industrial potential. Today, the per capita Gross Domestic Product (GDP) ranges from a low of about $1,300 to a high of $25,000.

The United States has strong economic, cultural, and security ties to Latin America and the Caribbean. More than 39 percent of our trade is conducted within the Western Hemisphere. Furthermore, 49 cents out of every dollar spent in Latin America is spent on imported goods and services from the U.S. Latin America and the Caribbean supply more oil to the U.S. than all Middle East countries combined. In addition to our strong economic ties, we share an increasingly strong cultural bond. Today, one of every eight Americans is of Hispanic origin, and that ratio is projected to increase to one in four by 2050.

Except for Cuba, all nations in the USSOUTHCOM AOR have some form of democratically elected government and free market economy. During the past 20 years, we have seen a positive trend as nations adopted democratic principles and institutions, subordinated their military to civilian leadership, instituted the rule of law, and promoted respect for human rights. However, democracies have not matured or flourished equally in the region. Some countries are struggling to complete the full transition to democratic rule. In other countries, democracy itself is at risk as failing economies, deteriorating security, and endemic corruption undermine institutions and public support.

Although several age-old border disputes still provide ample opportunity for disagreement between neighbors, this region does not have an arms race or a "shooting" war between nations. In fact, the region spends less per capita on arms than any area of the world. Today, democracies in this AOR generally maintain open and amicable relations with each other and reject armed conflict between nations.

THREATS

The greatest threats to democracy, regional stability, and prosperity in Latin America and the Caribbean are illegal migration, arms trafficking, crime and corruption, and illegal drug trafficking. Collectively, these transnational threats destabilize fragile democracies by corrupting public institutions, promoting criminal activity, undermining legitimate economies, and disrupting social order.

Illegal Migration. Illegal migration is a potential problem in our AOR. The ongoing violence in Colombia associated with fighting between illegally armed groups is expected to displace Colombian refugees across the international borders of neighboring nations. Panama and Venezuela have already reported displaced Colombian refugees inside their sovereign territory. Several countries that share porous borders with Colombia will remain vulnerable to illegal migration and incursions by armed insurgents and paramilitaries, resulting in political and social instability.

Arms Trafficking. The illegal trafficking of arms poses a serious threat to the national security of several nations. In our AOR, the breakup of the drug cartels in the early 1990s resulted in smaller, more adaptable drug trafficking organizations (DTOs) that have formed a symbiotic relationship with the insurgents and paramilitaries. These illegal and violent groups receive significant financial support from the DTOs, which they use to procure weapons. The insurgents can afford any

thing available on the international arms market, possibly including man-portable air defense weapons systems (the possession of which we cannot confirm).

Crime and Corruption. Local and international criminal organizations are an increasing threat to the security and stability of the region. Many nations in the AOR lack the organization and resources to effectively counter criminal activity within their borders. In some areas, criminal organizations are so pervasive that the governments cannot effectively protect their citizens.

Although money laundering, kidnapping, extortion, and bribery of government officials are common criminal activities within many Latin American and Caribbean countries, the impact is regional, as evidenced by the recent kidnapping of oil workers in Ecuador. In calendar year 2000, Colombia reported more than 3,000 kidnappings. Although criminal activity in the Caribbean has typically been less violent and characterized as local, we are seeing a proliferation of street gangs.

Drug Trafficking. The illicit drug industry is a corrosive force that threatens the stability and rule of law in the Andean Region. Partner nation governments realize the importance of working together to develop regional approaches to counter the production and trafficking of illegal drugs. However, effective and sustainable counterdrug operations are beyond the capabilities of our partner nations' thinly stretched security forces. U.S. counterdrug assistance to security forces will help Colombia and other nations in the region develop more effective counterdrug capabilities while enhancing United States Government support to partner nation interdiction efforts.

Drug trafficking organizations have shown considerable skill in adjusting their operations in response to our counterdrug efforts. These small but efficient organizations will change the place of production, transport routes, points of transshipment, and markets when eradication or interdiction programs achieve success. Many DTOs provide financial support to the insurgents and illegal self-defense groups to secure protection from counterdrug operations conducted by the Colombia National Police (CNP) and Colombian Military (COLMIL).

We are encouraged by the success of cocaine eradication programs in Peru and Bolivia and by the initial results of Phase I of Plan Colombia. Unfortunately, reductions in Peru's and Bolivia's cultivation appear to have been offset by Colombia's increased coca cultivation in calendar year 2000. However, further assessment is required to determine the full impact of the intensive aerial eradication effort recently conducted by the Government of Colombia in the Putumayo Department.

The illicit drug industry is also a growing threat to the U.S. homeland. According to the most recent interagency assessment, law enforcement and security forces detected 645 MT of cocaine hydrochloride (HCl) moving toward the United States from the source zone during 2000. The assessment also reports that 128 MT were interdicted, leaving the possibility that an estimated 517 MT were available for domestic consumption. According to the Office of the National Drug Control Policy (ONDCP), nearly 17,000 Americans lost their lives last year to drug overdoses and drug related violence. In addition to this tragic loss of life, the direct and indirect costs of illegal drug use to the U.S. taxpayer exceeded $110 billion.

THEATER ARCHITECTURE

The United States Southern Command, located in Miami but based in Panama until 1997, is responsible for planning, coordinating, and conducting all U.S. military activities in our AOR. We promote democracy and stability by working cooperatively with host nation security forces, responding to crises or contingencies such as the recent earthquakes in El Salvador, and supporting partner nation security forces and U.S. law enforcement agencies (LEAs) in reducing the flow of illegal drugs into the United States. To accomplish our mission, we have established the post-Panama theater architecture that includes our headquarters in Miami and component headquarters forward deployed in Puerto Rico.

Puerto Rico has replaced Panama for forward basing headquarters in the region. United States Army South (USARSO) has completed its relocation to Fort Buchanan, where it draws heavily on the Puerto Rican Army and Air Force National Guardsmen and Reservists to accomplish its assigned missions. United States Navy South (USNAVSO) was activated last year and is collocated with Special Operations Command South (USSOCSO) at Naval Station Roosevelt Roads.

To compensate for the loss of the 8,500 ft. runway at Howard Air Force Base, the United States Government (USG) negotiated long-term agreements for the use of forward operating locations (FOLs) at Aruba-Curacao in the Netherland Antilles, Manta in Ecuador, and Comalapa in El Salvador. These locations provide us the capability to conduct sustained CD operations throughout the source and transit zones. U.S. detection, monitoring, and tracking (DM&T) operations from the FOLS

improve our support to partner nation interdiction efforts. Thanks to the support of the U.S. Congress, funding has been provided for necessary operational and safety improvements for Manta and Aruba-Curacao and for construction design at Comalapa.

The Aruba-Curacao FOL provides effective, rapid response DM&T operations in the northern source zone, which includes the Guajira Peninsula of Colombia and the Venezuelan border region, as well as a large part of the transit zone. The formal 10-year access agreement with the Kingdom of the Netherlands was signed on March 2, 2000, but awaits final parliamentary debates and ratification.

The FOL at Manta extends our Airborne Early Warning aircraft coverage deep into the source zone. It is the only FOL from which aircraft can reach all of Peru, Colombia, and the drug producing areas of Bolivia. In January 2001, the Ecuadorian Constitutional Court issued the favorable ruling that the November 1999 access agreement complies with the country's constitution. Construction at the Manta FOL is on schedule. We will begin operating AWACS aircraft from Manta in October of this year and all construction will be completed by June 2002.

The Government of El Salvador offered the use of the Comalapa International Airport as an FOL for U.S. aircraft in Central America. Excellent relations between the U.S. and El Salvador, strengthened by years of solid military-to-military contact, helped produce favorable negotiations on the FOL agreement. This FOL extends the reach of our DM&T aircraft into the Eastern Pacific, Western Caribbean, and all of Central America.

In addition to our headquarters in Miami and three component headquarters in Puerto Rico, USSOUTHCOM has permanently assigned headquarters in the following locations: our Air Force Component (United States Air Force South) at DavisMonthan Air Force Base in Arizona; our Marine Corps Component (United States Marine Corps Forces South) in Miami, Florida; Joint Interagency Task Force East (JIATF–E) in Key West, Florida, which plans, coordinates, and supervises the execution of our support to counterdrug operations in the transit and source zones; Joint Southern Surveillance & Reconnaissance Operations Center (JSSROC), collocated with JIATF-E in Key West, which receives, fuses, and disseminates the radar common operating picture from AWACS and ground based, aerostat, and ROTHR radar; and Joint Task Force Bravo (JTF-B) in Soto Cano, Honduras, which provides responsive helicopter support to USSOUTHCOM missions in Latin America and the Caribbean.

Most of our post-Panama theater architecture is firmly in place, and we look forward to permanently anchoring our headquarters in CONUS, accomplishing necessary improvements at the FOL in Comalapa, and completing previously approved but temporarily suspended military construction projects in Fort Buchanan, Puerto Rico.

STRENGTHEN DEMOCRACY AND STABILITY

The United States Southern Command's military-to-military engagement with host nation forces seeks to build mutual trust and understanding that will engender regional stability and shared solutions to common problems. Our approach focuses on combined operations, exercises, training and education, security assistance, and humanitarian assistance programs. While maintaining strong bilateral relationships throughout the AOR, we promote regional cooperation and transparent operations among all our regional partners.

Caribbean. The fiscal year 1997 Unified Command Plan assigned responsibility for U.S. military activities in the Caribbean, a region of more than 32 million people, to USSOUTHCOM. The countries and territories in this region, as a rule, have very small security forces that need modernization and training assistance. They are receptive to regional cooperation and are well represented in the Organization of American States (OAS) and Caribbean Nation Security Council (CANSEC). During calendar year 2000, USSOUTHCOM conducted medical readiness training exercises (MEDRETE) and New Horizon engineer exercises; assisted partner nation security force training and new equipment fielding; and hosted Tradewinds 2000, a multi-national exercise that fosters maritime and land-based forces cooperation in response to regional crises and drug trafficking. In addition, many of the countries hosted other regional events to improve partner nation capabilities. For example, in January 2001, Jamaica hosted a regional disaster preparedness seminar that included representatives from more than 20 countries throughout the AOR.

Caribbean countries conduct operations and training with the United States Coast Guard that improve their capabilities to interdict illicit drug shipments through the transit zone. Most countries in the Caribbean have assisted U.S. efforts to interdict the flow of illicit drugs through the central and eastern Caribbean. One of our most

successful efforts is Operation Bahamas, Turks, and Caicos (OPBAT), a multi-agency international effort based in Nassau, Bahamas. The mission of OPBAT is to interdict the flow of cocaine and marijuana transiting through the Bahamas destined for the United States. OPBAT was established on July 12, 1990 by the TRIPART Agreement, a diplomatic engagement signed by the Governments of the Bahamas, the United Kingdom, and the United States. U.S. government agencies participating in OPBAT include DOS, DOD, USCG, and the U.S. Customs Service. Another prominent counterdrug operation in this region is Weedeater, which is conducted in the Eastern Caribbean. DOD provides helicopters for host nation law enforcement agencies and DEA to conduct marijuana eradication. The most recent Weedeater operation eradicated 1,013,635 marijuana plants and seedlings with an estimated Miami street value in excess of $800 million. Total helicopter operating costs for this Weedeater were slightly more than $129,000.

Central America. Four factors stimulate our engagement initiatives in this region. First, Central America, with more than 36 million people, is one of the least developed regions in our AOR. The military budgets of these nations cannot support large forces or large modernization efforts. Second, this region is vulnerable to natural disasters, as evidenced by Hurricane Mitch a few years ago, wildfires last year in Guatemala, and the recent earthquakes in El Salvador. Third, powerful criminal organizations, often fueled by drug related activities and money, challenge democratic institutions, and in many cases, exceed the capacity of the nations' security forces to provide protection to the population. Last, governments in this region are understandably sensitive to border disputes that have been ongoing for many years. Examples include the border disputes between Belize and Guatemala, between Honduras and Nicaragua, and the maritime disagreement concerning the Gulf of Fonseca. Last summer, USSOUTHCOM helped diffuse the Fonseca disagreement by providing Global Positioning Systems (GPS) and night vision goggles to Honduran and Nicaraguan military vessels to aid them in precise navigation.

Military forces in this region range from none to very capable. Costa Rica and Panama now have only police forces, while El Salvador demonstrated a very professional and capable military force during recovery operations following the recent earthquakes. Nicaragua has a large inventory of mechanized equipment, but needs assistance in training and sustainment.

Our engagement activities in Central America mirrored our efforts in other regions. Last year, we relied heavily on our New Horizons Exercise program to provide much needed assistance to several communities in Belize, El Salvador, and Nicaragua. In total, our forces renovated 12 schools, drilled 12 water wells, and provided road and bridge improvements. We also conducted a total of 32 medical deployments that provided health and dental services to more than 95,000 people. Medical teams on these deployments provided veterinary services as well.

Peacekeeping operations and seminars are excellent vehicles to promote cooperation and interoperability between neighboring nations. This past year, we conducted several combined activities in Central America, including the Peacekeeping Operations-North (PKO-North) exercise, hosted by Honduras and attended by 20 nations. This exercise trained multinational staffs from Caribbean and Central American nations in peacekeeping operations.

Costa Rica, Guatemala, Honduras, Belize, El Salvador, and Panama have also participated in Central Skies counterdrug operations. In support of Central Skies, the United States provides transportation support to Central American country teams and host nation military and counterdrug law enforcement agencies. The most recent Central Skies operation in Costa Rica eradicated 385,563 marijuana plants with a Miami street value that exceeded $300 million. U.S. helicopter operations costs for this iteration of Central Skies was approximately $164,000.

USSOUTHCOM has a long history of providing assistance to Central American nations following natural disasters. Last April, JTF-B from Soto Cano provided emergency assessment and fire fighting assistance to help Guatemalan forces extinguish nearly 250 wildfires. In November 2000, Hurricane Keith hit the eastern coast of Belize. USSOUTHCOM provided humanitarian assistance to the Belize government in the form of emergency shelters, vehicles, disaster relief equipment, and medical supplies. In the most recent disaster in El Salvador, USSOÛTHCOM provided emergency assistance that included the movement of 560 personnel and 160 tons of supplies by JTF-B helicopters. USSOUTHCOM relief and sustainment efforts following the earthquakes will include several medical readiness training exercises, technical expertise, and humanitarian assistance supplies and equipment. Central America is key to U.S. counterdrug efforts. El Salvador agreed to allow the U.S. to use Comalapa International Airport as an FOL for counterdrug operations. This facility supports U.S. DM&T aircraft coverage in Central America, Eastern Pacific, and Western Caribbean. El Salvador's rapid agreement to our re