Gladly. If i can go 3 30 we will recess5 minutes and come back if i 45 so everyone can vote and be back so everyone is able to hear everyone elses questions. We thank you for being here mr. Secretary, and, so promptly. We appreciate that you made time to appear before this Committee Twice in a weeks time passing an annual state Department Authorization bill was one of the fundamental responsibilities of the committee. And when we assert thatat responsibility and declined to exercise on our oversight, we surrender our authority to the executive branch and other congressional committeecongresse failed to do the job of the constituent. Sesenc restoring this annual practice was a top priority of mine when i became the chairman and im proud of the significant progress that we have made when the first authorization bill in 14 years became law. And i want to thank senator cardin and everybody on the committee for making that happen. Er however, because of the previous inaction there are programs that have not been appropriatelyer reviewed and analyzed in over a decade. This lack of oversight result in a certain policy goals, wastefud spend and a lack of transparency. This years state authorization contains numerous importantwastl provisions that build upon last years bill and exercise the oversight of the state department bureaucracy andhat bl Government Programs that spend billions of dollars in taxpayers money and we also understand that legislation is being crafted in the early stages of the departments plans for the reorganization and we expect the reorganization will be a topic for a good bit of conversation today. We are pleased that you have come before us to speak about the process under way to reorganize the department and you being here is further evidence of the new t administrations commitment to openness, to input and two consultation with congress and again i appreciate the 45 minutes or so you spend with us last week before the hearing. Rather than being a hindrance to the secretary as he assesses the future structure of the department, i believe this is a tool that will assist the administration and its work while also serving as a mechanism by which congress can assist on improving how the department functions. The Ranking Member and i and our respective staffs Work Together successfully in the past few years to pass authorization bills out of committee to get a combination of the two bills signed into law. Again i want to thank you for your dedication and making sure the committee continues to fulfill its duty this year as well. I want to thank all of thehe members for their cooperation and contributions in the process. S. We are here today to discuss the committees draft authorization bill that weve shared with everyone and we look forward to hearing your views. Thank you everyone and i will turn it over to the distinguished Ranking Member. Thank you for returning to the committee. We treated you well enough the last time you came back so soon. Its always a pleasure to have you here. This is an extremely important hearing reviewing the state Department Reauthorization bill for fy 18 as well as the state Department Reorganization plans chairman corker has laid out with both of us feel veryme passionately about and that is congress has a responsibility to authorize the programs that the state Department Said at the committee that needs to do that work. We watch with the Armed Services committee in the National Authorization act which is a very important bill and we bracket is that a lot of issues that should come through this committee we need to look at the bill to try to get a vehicle too get those issues into the statute. We should have our own opportunity to do that and under chairman corkers leadership, we were able to get an important bill done the last congress and we look forward to your help in establishing the principle. So, the draft legislation we are looking at that deals with the organization and the department of state and Embassy Construction and personnel issues, diversity, informationls security, anticorruption and other related issues. Its more ambitious than a bill he had last time and it keeps building on what we believe is the appropriate role. But we do need your help. Now, it is complicated because there is a new administration and theres also a listening tour going on and they reorganization going on. Ur so, you have committed to us that we, the congress and this committee will be a part of that consultation as you look at the reorganization of the department of state. How we handle the states a looka authorization needs to beni consistent with congressionalat input to the reorganization so that presents an additionaleorgz challenge. When we had the hearing on this years report, i went over the fact that there have been press reports to the Consular Affairs and the bureau of population and migration being considered for the transfer to the department of Homeland Security and raised serious questions as to whetherr that was advisable. We also know whether it would maintain its independence. These are issues that this committee obviously has a great interest as we look at the state authorization is reorganization its important that we understand how these issues arer being contemplated. And then we have an area that has been greatly concerned in the reduction of the workforce by attrition. To me that is a nonstrategic way to produce th reduce the numbere state department based upon thet retired. The budget was the by the Trump Administration that would veryra seriously compromise the ability of the United States to maintain its Global Leadership on diplomacy but they do mention theres the elimination of assistance and economic support putting it into a new categoryom of Development Assistance and economic support. As we looking at authorization its important that we understand what is going on here because it doesnt seem to add up to what we think are important issues. Lastly, let me mention this area of diversity. Diversity is a matter that is critically important for the state department to carry out its mission. If you dont have a diversified talented workforce, it is virtually impossible for america to have maximum impact around all of the world. So we want to help you on that effort. But when we look at the bickering and the fellows, that because of some concern as to what is the treatment in the state department to maintain that flow of talent in the workforce. We will deal with that but will work with you to make sure that we in fact have it type of talented workforce at the department of state. Look forward to your testimony and look forward to our discussions. We will now turn to the only confirmed person other than secretary of state. To help structure the state department. We are thankful that you are here and in the role that youre playing on behalf of the nation and all of us and we look forward to your testimony. Thank you, mr. Chairman. Ranking member cardin and members of the committee for having me back today. We had a good discussion last week in the committee on the Department Annual tip report which we released last month. And we are grateful for your support and attention to this important issue in many other state department matters. As i committed in my confirmation hearing, i am always at your disposal to come and talk about issues of mutual importance in the department of state and im grateful for this opportunity to engage with the committee both on the draft authorization act and on our redesign effort. I slowly recognize and appreciate the committees success last year and passing authorization legislation and passing abilities is a clear unmistakable message that congress is committed to american diplomacy and to the many patriots of the department of state who work long hours, serve the American People and advance our interests abroad. Thank you, members of the committee, for your commitment to the department and for your dedication to serving our mutual goal of serving and representing the people of the United States. We look forward to working with you in this years authorization effort and appreciate the opportunity to engage, discuss and coordinate with you throughout this process. For my initial review of the draft of the fiscal year 2018 state Department Authorization bill, it is clear that the committee and Department Chair many of the same goals. Advancing Americas National security and economic interest, the judicious expenditure of resources and the protection of our personal and interest around the world. In the 21st century the United States faces many evolving threats to our National Security. As this committee knows well, the state department with a workforce of more than 75,000, must respond to these challenges with the necessary speed and appropriate resources. The nature of our work at the state Department Demands flexibility and adaptability to an everchanging world. We ask that the committee keep this in mind as you continue to evaluate proposals for the authorization bill. We also appreciate the great interest in support committee has shown to the departments efforts to make all programs and organizations more efficient and effective. The punishment of this redesign effort has been the input and feedback received from the state departments own employees. We recently colluded a listening survey that was made available to everyone about state department and usaid colleagues. The response was outstanding and well received. Over 35,000 employees completed the survey and hundreds part in facetoface followup interviews. Now we have the initial feedback and have posted the results of the survey, the secretary has asked me to lead phase 2 of the redesign efforts. Which began last week. I share the secretarys approach to making our department more efficient and effective without preconceived ideas about the final results. Phase 2 includes a Steering Committee that provides oversight and working groups to address the main themes that came out of the listening tour. First, foreign assistance. Second, overseas alignment and approach. Third, Human Capital planning. Fourth, it platforms and fifth, management support. We have created an online portal so that every employees can continue to provide input throughout the process. To ensure a thorough and comprehensive review we are drawing upon the expertise of every bureau in the department with participation from washington and post overseas. This redesign effort is part of a Larger Agency review as directed by the president. To me the president s goals, we expect our review to be completed and reports submitted by september 15. Welcome input as we move forward and know that, please know that your feedback will be integral to making the secretaries organizational redesign a success. Thank you again for the opportunity to discuss the state Department Authorization bill. We look forward to working with you and your staff so congress can exercise over several in the state Department King carry out its Mission Abroad and i look forward to answering questions you may have. Thank you very much. I will defer to the Ranking Member. Thank you for your willingness to take on these responsibilities. I am going to talk about an area that has gotten a lot of attention in this committee. That is the special envoys. The chairman is properly pointed out that they continue to grow and grow and grow. These are not confirmed positions and therefore, they gain a lot of power at times. Where a confirmed person should have personal responsibility. So i dont know exactly how were going to handle this one. Because theres a lot of support within congress for particular envoys. We dont want to diminish the importance of the particular area in which we have a special envoy. Therefore, if we eliminate the concern is that congress is deterring the priority. On the other hand i would like to know what your priorities are. Where do you think we should be looking at these special envoys with, where are you looking at not feeling envoys or suggesting perhaps even knew envoys . And, is it important to have those positions confirmed by the United States senate or not . Can you share with us your thoughts on how you would like to see the congress working, the Senate Working with you on special envoys . Certainly. I think senator, you hit the nail on the head. The topic of special envoys, it really depends on the issue we are talking about. The office we are talking about. We have, i think, approximately 70. Some of those offices were created to address serious issues which, over time have diminished insignificance or importance. Others, whether it be global womens issues, fighting antisemitism are enduring issues are extremely important to us. It really depends on the office we are talking about. Some of the interest that will guide us are making sure that the office, if the office is to remain functioning, is that its linked to resources that the department for example, a bureau, that it may be isolated from if it is a special envoy who reports only to the secretary. So, all of the special envoys are subject to our redesign review that, even those that are congressionally authorized by congress . I am sorry go ahead. Are you considering not going positions that congress specifically has provided by Statutory Authority . We are looking at all of them. For those that, and we will consult with you and this committee and others on each of them. Any office that you, i know that senator shaheen and i spoke about womens issue. Any office that has continuing interest by members of this committee, we will consult with you before we take. I want to give the administration maximum flexibility about where congress has said that this area where there is gender issues of tolerance or the rights of minority communities. Where we have specified by statute, certain authority, it seems to me that we are the policy on. Those areas we really dont have discretion and should be filling. If we are going to try and Work Together on this, not i am open this. I agree with the chairman we have to make special envoys. On the other hand, there are areas i want to have special attention where dont think you get it unless theres a point person within the state department to deal with it. And i dont have that Comfort Level as to how we are going to resolve this. If i could, just to put it in perspective. I think there are 68 envoys. Seven are permissive. In other words, we legislated permissive language to create an honor to create an envoy. So vast majorities of the just made appeared in many cases there are large staff to go with that. Is that correct . Thats true. So what is permissive . Should instead of shall . Well, or may. May instead of shall. Its just like we do sometimes on sanctions. May instead of shall appear so theres really only 11. Ma challenge weather may and shall. Weve gone through this many times whether it is directive are mandatory. I am not comfortable and i would like to know how we are going to help the ledges how the United States senate will be able to weigh in. Where the authorizing committee, congress is the authorizing body and we want to pay special attention and best way is by special online. Do have to pass a statute to do that . Or are we looking at ways that we have input so if you follow the traditions of other administrations, yes, we tell you eight and then you get 70 on your own . I am not sure that is the way to go. And on the other hand should we require that the senate sign up and every one of them . You can do that. We are already backlogged on filling positions. That was at another i dont know, 20 or 30 more confirmations that have to get through. I think this is a cumbersome process and it is separate to figure this out unless we know that there is an open process that, i think that there is tremendous interest on womens issues. That is one. But there are other areas that members have pretty strong views. And then when United States senate when senator sometimes can dictate what happens around here. If a senator against difficult, will we then have a special envoy . Mr. Chairman, i just think we have to have some orderly process which we are going to be dealing with these special envoys. My sense is that secretary sullivan agrees with that. And is more than glad to have a conversation about that. Mr. Chairman i have a question. Since there is a boat at 5 30 p. M. How does the chair intend to proceed with the hearing . We will adjourned at 5 30 p. M. And come back at 5 45 pm any other procedural questions . Senator young. Chairman [laughter] thank you, chairman. Thank you, mr. Sullivan. Just on the issue of special envoys. This is precisely why we need to look at the entire organization so we are not doing and and run around the regional bureaus and so forth. But it would be helpful i agree with folks on both sides of the aisle. At least over a period of time we need to establish principles and inform us when a special envoy will be appointed and when one will not. And that we are notified and that special envoy will continue to exist until we affirmatively indicate after 60 days or whatever that the special envoy was inappropriately from our perspective put in place. I would like to pivot to the proposed merger, at least circulating in some circles. Csis recently published what i thought was instructive and thoughtful analysis of the merger and the us ia, the Us Information Agency and the state department in 1999 and why that went awry. And i would like to just read some excerpts from that. The origins of that merger, i became aware were Vice President al gore is reinventing government blueprint. The plan was to fold usaid and usia and the arms control and Disarmament Agency into state. The Arms Control Agency was happy to merge because they are primarily diplomatic and what they do. But usaid and usia resisted that. A deal was kind and so as often happens appear, and so, here is what happened. And by the way, the Heritage Foundation which is currently advocating for consolidation of state and usaid has called this usia merger misguided. And some of their scholars have written about how poorly it went. One reason for the failed integration of the agency stem from the vastly Different Missions and cultures of two organizations. I would argue this something we should consider here. State and usia budget functions were also merged but Public Diplomacy was and is a function of the state department. That created problems as well. Lastly, the consolidation we now know, we shortsighted soon thereafter we had 9 11. The global war on terror is a global war of ideas. It gives us some sense of how consequential getting it wrong can be. So i would just commend that very brief article to your attention and of his attention as we consider that. Next i want to thank you. You caught me out in the hall. Youre the best followup of any political appointee in my recent memory. You caught me in the hall after the last hearing and asked me if i had any additional questions or concerns for turning to General Accountability Office i indicated to the secretary tillerson had promised to sit down with members of that task force. The senator and myself to discuss some of our ideas and you offer your encouragement. So thank you for that. Lastly, i think it is important for this committee to understand secretary sullivan, the timeline we are dealing with here. And in your prepared statement you write that you expect to complete the reorganization report by september 15. I do not believe you have spoken to this yet but will the committee receive a copy of that report and if so, when . Thank you senator. Not only will you receive the final work product but my plan is that we will be consulting regularly. I and others, including the secretary will be consulting regularly between now and then so that your views inform the final report. So, when would you anticipate the next i have not been apprised of any previous consultations to my recollection. Is that something you can send to each office here . Each member of the committee . Certainly. I would be delighted to. I started last week as the chairman mentioned, i had a conversation before the hearing last week with the chairman and the Ranking Member on this and i told them then and i will tell the members of committee know that is the first step in our consultation with you. This is the next step and we will make sure that you and all of the members of the committee are aware called forward of opportunities for us to solicit your input and also provide you updates on how we are proceeding. Lastly, can you assure me that you will not begin implementation of this proposed plan until each member of the committee has been fully briefed on it sir . Absolutely. Thank you. Senator coons. Thank you chairman corker for holding this important hearing and for all of the work that you and your staff have done on this. I continue to believe it is very important for the committee to look to the process annually. I appreciate the improvements to the process. The bill includes three of my proposal is to help the state department personnel. I hope we can agree to provide greater flexibility to allow separated family members of the Foreign Service officers to travel to see each others and other family members. And i recommend while i support this Committee Process i also want to be clear, i do not feel as somehow granted congressional approval of the Trump Administration is an organization. I appreciate line of questioning by senator young to that effect. I continue to be concerned about the lack of clarity surrounding the organization process and hiring freeze. Appreciate what weve heard so far today but look for more. And of course, i oppose the seat budget cuts to diplomacy and development proposed in the administrations school year a team budget request. I am pleased that the bill includes a mechanism by which congress can review, derivatization. And i wanted to move forward. Deputy secretary sullivan, thank you for testifying and responding to our concern. Fern Service Officers, families and the whole community of employees of the state department and usaid make enormous sacrifices to serve our country. Their work is critical to National Security and to advancing us interest around the globe. As a minute of the senate friends of the Foreign Service caucus i believe we can and should do more. To recognize that work them just challenges they face. I look for to taking that on with you. Let me just mention, and april traveled with chairman corker to a refugee camp and in uganda. And i was able to spend time with Service Officers at an unaccompanied post. I am concerned they face unnecessary hardships and i will be interested mr. Deputy secretary and whether you are working to improve the conditions of course at many unaccompanied posts around the world and interested in whether you would consider renewing or extending the south sudan envoy position, one of the 70 some that i see value in given the famine, conflict and regional context. Sure. The welfare of men and women who serve a broad both Foreign Service and civil service, is our highest priority. Every staff meeting that we have begins with a question and that is our our people okay . That is the highest priority. My highest priority. You just issues you have raised, we have included in our redesign efforts, the redesign consists of an executive Steering Committee of which i chair. In the five working groups that i described. Among them, the working groups would address the conditions abroad, allowances, treatment of the Foreign Service officers. And this redesign, all of the input is coming from our career, foreign seer and civil Service Officers. All of the working groups, there are very few noncareer participants. In fact, for the working groups there is only one noncareer participant. All of the other members are either from state or aig with proportional requisition between state and aig. They are stationed in washington or abroad in a different level of seniority. So we try to cover the whole gamut of the department and aig. So that those issues you raised will be raised by the people most affected by it. If i might come into my quick questions. I realize you may not have the full time to answer them and i will submit them for record if that is the case. First, i understand one of the bureaus or offices you are considering closing is the office of ambassador stephen is no longer serving as lead coordinator for implementation. I would welcome hearing if i need information on jcp away enforcement. Who is a lead person . Will the administration appoint a new coordinator and value accounting for the fact that individual senators like having regular briefings on iran and the path forward. Reassure you and the committee that there has been no predetermination on the issue of absorbing a usaid into the state department. We had a study last week with a significant representation from the usaid participating and will provide their input on what senator gardiner has described as the different culture, nation, tools etc. That usaid employees have. I am very respectful of that and of their commitmen input is impd there has been no decision to merge into the states. The office that we described is under review. Anything would be changed with respect to that office but what i can assure you of is two things. First, the significance is not diminished in any way and that is my promise to you. Thank you mr. Secretary and mr. Chairman for your indulgen indulgence. We will stand in recess for 15 minutes and reconvene at 5 49. Thank you