Saturday, May 5, 2001

Important conference call with DHHS. On call was Art Lawrence (Acting ASH), Eric Goosby, Helene Gayle, ASH-Designate Claude Allen, Jeff Copeland, Terrell Halaska, Bill Steiger. We (Me, Jeff Copeland, Terrell Halaska, Bill Steiger) had been working for weeks on putting together a position paper for Secretary Thompson on the response to the challenge of AIDS in Africa. UN Secretary General Kofi Annan will come out with a proposal for a Global Trust Fund for AIDS in Africa in June at a Special Session of the UN General Assembly. The White House used our White paper as background to get out front on the issue and announce that the USA would contribute to the Global Trust Fund. We were told on the call that the Cabinet Council met with Pres. Bush. The Cabinet Council consisted of Secr. Thompson, Secretary Colin Powell, Carl Rove, OMB Director Mitch Daniels, Domestic Policy Council Margaret La Montagne, Pres. Counsel Rodriguez and members of VP Cheney’s office. The decision was made for Pres. Bush to announce on May 9, 2001 that the USA would contribute in FY 2002 $200 million to the Trust Fund. However, of great relevance to me and NIH, there would be no new money. It would all be budgetary offsets. Of the $200 million, HHS would give $100 million, Dept. of State would give $60 million and $40 million would come from the existing AIDS trust fund. Of the $100 million from HHS $95 million would come from NIH as a transfer. $65 million would come from B & F, $25 million from NIAID, $5 million from NIH OD and $5 million from cyber security. Of considerable note is that Bill Steiger mentioned on the call that he was very “grateful for the generosity of Tony Fauci who has offered to provide the $25 million from his FY 2002 appropriation. Since NIAID will get a 14.2% increase, when you subtract the $25 million, this means we would still get a $260 million increase in our >$2 billion budget. It would not be taken out of the base, but would be a one time transfer.”. The fact is that I had offered to help a few weeks earlier in my conversation with Terrell Halsaka. By “help” I was not referring to the Trust fund; I was referring to putting more research money into the AIDS effort in Africa. There was no way that I offered $25 million for the trust fund. However, I did not object over the phone since it was obviously a done deal and the President was going to announce it. It would look very bad if I objected. There was nothing that I could do but turn this “challenge” into an “opportunity”. In the end, it really is the right thing to do since it shows leadership in an important cause and our base was not impacted. I will probably take some heat from our constituencies. However, who can cogently argue