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ANCA Outlines Armenian American Foreign Aid Priorities

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  • ANCA Outlines Armenian American Foreign Aid Priorities

    Armenian National Committee of America
    1711 N Street NW
    Washington, DC 20036
    Tel: (202) 775-1918
    Fax: (202) 775-5648
    E-mail: [email protected]
    Internet: www.anca.org

    PRESS RELEASE

    FOR IMMEDIATE RELEASE
    February 13, 2007
    Contact: Elizabeth S. Chouldjian
    Tel: (202) 775-1918


    ANCA OUTLINES ARMENIAN AMERICAN FOREIGN AID PRIORITIES

    -- Urges Key House and Senate Foreign Aid Panels to Support
    $75 Million for Armenia; $10 Million to Karabagh; and
    Continued Armenia-Azerbaijan Military Aid Parity

    WASHINGTON, DC - The Armenian National Committee of America (ANCA),
    today, called on key Congressional foreign aid appropriators to
    maintain current levels of U.S. assistance to Armenia, expand the
    Nagorno Karabagh humanitarian and developmental aid package, and
    keep in place the agreement to ensure parity in U.S. military
    assistance to Armenia and Azerbaijan.

    The ANCA's roll-out of the Armenian American community's foreign
    aid priorities comes in the wake of the Administration's recent
    release of its fiscal year (FY) 2008 proposed budget request. The
    President's request would reduce U.S. assistance to Armenia from
    $75 million to $35 million, breaks military assistance parity
    between Armenia and Azerbaijan, and makes no specific mention of
    U.S. assistance levels for Nagorno Karabagh.

    In February 13th letters to each of the members of the House and
    Senate State-Foreign Operations Subcommittee members, ANCA
    Executive Director Aram Hamparian highlighted Armenia's growing
    relationship with the United States: "We are, of course, very
    proud that Armenia has been a good friend to America, providing
    strong and consistent support to the global war on terror, taking
    part in the NATO Partnership for Peace, and contributing forces to
    Operation Iraqi Freedom, as well as for peacekeeping operations in
    Kosovo."

    The ANCA argued for maintaining U.S. economic assistance to Armenia
    at least at the current level of $75 million, noting that "in great
    measure as a result of reforms supported by U.S. economic
    development programs, Armenia's economy has grown by more than 10%
    in each of the past six years, more than doubling the size of
    Armenia's Gross National Product. Sadly, however, the people of
    Armenia are still faced with the devastating impact of Turkey and
    Azerbaijan's illegal dual blockades - estimated by the World Bank
    as costing Armenia at least $720 million on an annual basis."

    In urging a shift in U.S. aid to Nagorno Karabagh from humanitarian
    to developmental programs, Hamparian stressed that this expansion
    "would reflect our success in leveraging local efforts to
    dramatically reduce Nagorno Karabagh's once-daunting humanitarian
    challenges. The time has come to support Nagorno Karabagh's young
    democracy and its efforts to expand its free market economy by
    funding programs aimed at supporting democratic governance,
    encouraging sustainable economic development, and creating
    conditions conducive to greater stability and lasting peace in this
    strategically important region."

    Citing the agreement struck between the Congress and the
    Administration in 2001 to maintain U.S. military aid parity to
    Armenia and Azerbaijan, Hamparian argued that any retreat from this
    principle would "destabilize the region and embolden the
    Azerbaijani leadership to act on their threats to impose a military
    solution to the Nagorno Karabagh conflict." He added that, "more
    broadly, the ANCA has underscored that breaching the parity
    agreement would reward the leadership of Azerbaijan for obstructing
    the peace process, while at the same time undermining the role of
    the U.S. as an impartial mediator of the Nagorno Karabagh
    conflict."

    Finally, Hamparian urged support for a $200,000 allocation for the
    California-Armenia Trade Office, dedicated to strengthening
    American company trade with Armenia and surrounding countries. He
    noted that, "this modest commitment of resources will expand U.S.
    access to foreign markets and trade and help keep these countries
    economically viable and independent. California, which boasts the
    largest Armenian population outside of Armenia, almost 1,000,000
    strong, is the natural partner here in the United States to serve
    as the foundation for this important relationship."

    The complete text of the ANCA letter to the House and Senate
    Appropriations Subcommittees on State-Foreign Operations is
    provided below.

    #####

    Text of ANCA letter to the House and Senate Appropriations
    Subcommittees on State-Foreign Operations


    February 13, 2007

    The Honorable Nita Lowey
    Chairwoman
    State-Foreign Operations Subcommittee
    Committee on Appropriations
    U.S. House of Representative
    Washington, DC 20515

    Dear Chairwoman Lowey:

    I am writing to you, after having reviewed the President's recently
    released Fiscal Year 2008 budget request, to share the Armenian
    American community's views on several provisions that will likely
    be addressed as part of your panel's consideration of the FY 2008
    State-Foreign Operations bill.

    Before touching on these specific points, I would like to express
    once again our community's profound appreciation for the role that
    you and this Subcommittee have played in strengthening the special
    relationship between the United States and Armenia, and reinforcing
    the enduring bonds that have long existed between the American and
    Armenian peoples. Armenian Americans deeply appreciate America's
    helping hand, both as a reflection and a practical expression of
    the commitment of the United States to Armenia's independence,
    security, and prosperity.

    We are, of course, very proud that Armenia has been a good friend
    to America, providing strong and consistent support to the global
    war on terror, taking part in the NATO Partnership for Peace, and
    contributing forces to Operation Iraqi Freedom, as well as for
    peacekeeping operations in Kosovo.

    Our specific concerns are outlined below:

    1) Parity in military aid to Armenia and Azerbaijan:

    We call for the appropriation of equal levels of military
    assistance to Armenia and Azerbaijan, in accord with the agreement
    struck between the White House and the Congress during
    deliberations, in late 2001, over the conditional waiver of Section
    907 of the FREEDOM Support Act.

    This agreement was struck between the White House and Congress in
    2001, during deliberations over granting the President the
    authority to waive the Section 907 restrictions on aid to
    Azerbaijan. The Armenian American community has vigorously
    defended this principle, stressing that a tilt in military spending
    toward Azerbaijan would destabilize the region and embolden the
    Azerbaijani leadership to act on their threats to impose a military
    solution to the Nagorno Karabagh conflict. More broadly, the ANCA
    has underscored that breaching the parity agreement would reward
    the leadership of Azerbaijan for obstructing the peace process,
    while at the same time undermining the role of the U.S. as an
    impartial mediator of the Nagorno Karabagh conflict.

    In a clear breach of this agreement, the Administration, in its FY
    2008 budget proposal, has called for breaking parity, in
    Azerbaijan's favor, in both Foreign Military Financing (FMF) and
    International Military Education and Training (IMET). We ask the
    panel to reject this ill-advised proposal by restoring military aid
    parity.

    In addition, we encourage the panel to carefully monitor all
    military aid provided to Armenia and Azerbaijan, including the
    Caspian Guard Program, Nonproliferation, Antiterrorism, De-mining
    and Related Assistance, and other military-related programs, to
    ensure that both the principle and practice of military aid parity
    is maintained in all spheres. Each dollar in U.S. military
    assistance - either specifically appropriated or provided at the
    discretion of the Administration - should be matched with a dollar
    of military aid to Armenia.

    2) Economic Assistance to Armenia:

    We urge you to include language requiring no less than $75 million
    in direct U.S. economic assistance to Armenia in FY 2008.

    Since Armenia's independence in 1991, U.S. assistance has played a
    vital role in meeting humanitarian needs, fostering democratic
    reforms, and building self-sustaining economic growth.

    Today, with the help of the United States, Armenia is a member of
    the World Trade Organization, International Monetary Fund, and
    World Bank, has signed bilateral agreements with the United States
    on trade relations, investments, and the protection of investments,
    holds regular Economic Task Force meetings on U.S.-Armenia economic
    cooperation, and - in 2005 - was granted Permanent Normal Trade
    Relations status.

    The Wall Street Journal-Heritage Foundation 2007 Index of Economic
    Freedom ranked Armenia as the 32nd freest economy in the world,
    based on a study that covered 10 broad factors of economic freedom,
    including property rights protection, regulatory environment, tax
    rates, fiscal policy, government intervention in the economy,
    monetary policy, black markets, and trade policy.

    In great measure as a result of reforms supported by U.S. economic
    development programs, Armenia's economy has grown by more than 10%
    in each of the past six years, more than doubling the size of
    Armenia's Gross National Product. Sadly, however, the people of
    Armenia are still faced with the devastating impact of Turkey and
    Azerbaijan's illegal dual blockades - estimated by the World Bank
    as costing Armenia at least $720 million on an annual basis.

    The Armenian American community is, of course, tremendously
    encouraged by Armenia's participation in the Millennium Challenge
    Account, the new and innovative merit-based foreign aid program.
    We wish to be clear, however, that this program does not serve as a
    substitute for assistance provided by the Congress under the
    FREEDOM Support Act. In fact, the Administration made clear to
    Congress when the MCA program was initiated that it would very
    explicitly not be a substitute for normal foreign aid but would
    rather serve to augment it. In this case, the MCA is specifically
    designed to help alleviate poverty through the strengthening of
    Armenia's rural infrastructure, primarily in the areas of roads and
    irrigation. The FSA, by contrast, provides concrete and vitally
    needed assistance for key reforms in democratic governance, health
    care, social protection, and education.

    3) U.S. Assistance to Nagorno Karabagh:

    We encourage the panel to allocate no less than $10 million in its
    FY 2008 bill for programs in Nagorno Karabagh, and to gradually
    retarget this aid package from humanitarian to development
    assistance.

    For the past decade, the U.S. Congress has played a unique and
    vital role in providing direct aid to meet pressing humanitarian
    needs in Nagorno Karabagh, helping its people to rebuild their
    lives after years of devastating Azerbaijani aggression. The
    expansion of our efforts to include development aid would reflect
    our success in leveraging local efforts to dramatically reduce
    Nagorno Karabagh's once-daunting humanitarian challenges. The time
    has come to support Nagorno Karabagh's young democracy and its
    efforts to expand its free market economy by funding programs aimed
    at supporting democratic governance, encouraging sustainable
    economic development, and creating conditions conducive to greater
    stability and lasting peace in this strategically important region.

    For this crucial transition to begin, Congress needs to clearly
    specify in its FY 2008 State-Foreign Operations bill that U.S.
    assistance for programs in Nagorno Karabagh must include
    development programs.

    4) Section 907 of the FREEDOM Support Act:

    We ask the panel to keep Section 907 of the FREEDOM Support Act in
    place and to ensure strict compliance by the Administration of the
    conditional authority it has been granted by Congress to waive this
    law.

    5) California-Armenia Trade Office:

    We urge the panel to appropriate $200,000 to allow the California-
    Armenia Trade Office to expand its operations to assist business
    communities in California as well as other U.S. states.

    Currently, this office, the only official American trade
    representation in the Republic of Armenia, is operated by the
    Foundation for Economic Development, a California not-for-profit
    corporation that has been contracted by the State of California to
    handle its operations. CATO began operations in October of 2005
    under the auspices of the California Business, Transportation and
    Housing Agency, but is funded entirely through privately raised
    donations. Though located in Armenia, it serves a much larger
    region, covering the Newly Independent States and the countries of
    Eastern Europe and Western Asia. The mission of the Trade Office
    is to assist California companies increase their exports to Armenia
    and the surrounding region, as well as to help companies from the
    region to build commercial and investment relationships with
    businesses in California.

    This modest commitment of resources will expand U.S. access to
    foreign markets and trade and help keep these countries
    economically viable and independent. California, which boasts the
    largest Armenian population outside of Armenia, almost 1,000,000
    strong, is the natural partner here in the United States to serve
    as the foundation for this important relationship.

    In closing, please know that the ANCA respects and values your
    friendship and the Subcommittee's long-standing leadership on
    issues of concern to the Armenian American community. Your
    attention to the important matters outlined in this correspondence
    is greatly appreciated.

    We would, of course, welcome the opportunity to meet with you to
    discuss these matters in greater detail.

    Sincerely,

    [signed]
    Aram S. Hamparian
    Executive Director
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