New York ? The number of foreign children adopted by Americans fell 12 percent in the past year, reaching the lowest level since 1999 as some countries clamped down on the process and others battled with allegations of adoption fraud.

China, which for a decade was the leading source for international adoptions, accounted for the biggest decline and dropped out of the top spot.

It was replaced by Guatemala, which almost certainly will lose that status in 2009 because of a corruption-related moratorium on new adoptions imposed by U.S. officials.

Figures for the 2008 fiscal year, released by the State Department on Monday, showed 17,438 adoptions from abroad, down from 19,613 in 2007. The all-time peak was 22,884 in 2004.

Reasons for the decline vary from country to country. China and Russia – the two largest sources of adoptees over the past 15 years – have sought to care for more of their abandoned and orphaned children at home, and China has imposed tighter restrictions on foreign applicants.

The numbers were sobering to advocates of international adoption, who expect the drop to continue for 2009 as Guatemala struggles to rein in its formerly freewheeling adoption industry.

“There are still tens of millions of orphans around the world – and we know there are millions of Americans willing to adopt these kids,” said Chuck Johnson, chief operating officer of the National Council for Adoption. “Countries are very reluctant to let go of what they consider their future, even though they’ll readily acknowledge the future for these kids is not promising.”

By far the biggest drop was for adoptions from China, which fell to 3,909 from 5,453 in 2007 and a peak of 7,906 in 2005. Among the factors: a rise in domestic adoptions as China prospers and tighter restrictions on foreign adoptions that exclude single people, older couples, the obese and those with financial or health problems.

As a result, waiting times to complete an adoption from China have increased in many cases to three or four years, a deterrent to many aspiring adoptive parents. China offers a faster timetable for foreigners willing to adopt children with physical or emotional disabilities.

Adoptions from Guat-emala also declined in the past year, from 4,728 to 4,123, and the number is projected to be sharply lower for 2009.