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PRESS RELEASE
March 28, 2007
U.S.-Armenia Public Affairs Committee (USAPAC)
1518 K Street, NW, Suite M
Washington, DC20005
Contact: Rob Mosher
Telephone: 202-783-0530
USAPAC Urges Higher Allocation of Assistance to Armenia and Nagorno Karabakh
Washington DC - In testimony submitted for the record for the public
hearing on the Fiscal Year 2008 budget, the U.S.-Armenia Public
Affairs Committee (USAPAC) called upon the House State, Foreign
Operations and Related Programs Subcommittee on Appropriations to
support U.S. assistance and policy support in the South Caucasus
generally and Armenia and Nagorno Karabakh specifically.
USAPAC requested that:
·`Not less than' $75 million in bilateral aid be provided to the
Republic of Armenia;
·Language urging USAID to allocate `not less than' $10 million to
Nagorno Karabakh with a substantial developmental component be
included;
·Military assistance parity between Armenia and Azerbaijan be
maintained by providing Armenia with $4.3 million in Foreign Military
Financing funds, and $1 million in International Military Education
and Training assistance;
·No further changes to the conditional waiver of Section 907 of the
FREEDOM Support Act;
·Confidence-building measure language to advance a peaceful resolution
of the Nagorno Karabakh conflict be included.
The full text of the testimony appears below.
The U.S.-Armenia Public Affairs Committee is a 501(c)(4) tax-exempt
and not-for-profit organization established to advance
Armenian-American interests.
***
On behalf of the U.S.-Armenia Public Affairs Committee (USAPAC), Rob
Mosher, Director of Government Affairs, is pleased to provide
testimony to the Subcommittee.
USAPAC requests that `not less than' $75 million in bilateral aid be
provided to the Republic of Armenia under the provisions of chapters
11 and 12 of part I of the Foreign Assistance Act of 1961 and the
FREEDOM Support Act account, for assistance for the Independent States
of the former Soviet Union and for related programs.
USAPAC also recommends that the Subcommittee include language urging
USAID to allocate `not less than' $10 million to Nagorno Karabakh with
a substantial developmental component under the FREEDOM Support Act
account, for assistance for the Independent States of the former
Soviet Union and for related programs.
We respectfully urge the Subcommittee to maintain military assistance
parity between Armenia and Azerbaijan by providing $4.3 million in
Foreign Military Financing funds to Armenia under the provisions of
section 23 of the Arms Export Control Act.In addition, our
organization requests that $1 million in International Military
Education and Training funds be allocated to Armenia under section 541
of the Foreign Assistance Act of 1961.
Recommendations for Fiscal Year (FY) 2008
1. Economic Assistance to Armenia
USAPAC urges the Subcommittee to allocate `not less than' $75 million
in U.S. assistance to Armenia in FY 2008.
We are grateful to the Subcommittee for providing effective annual
levels of humanitarian, reform and development assistance to
Armenia.Since its independence in 1991, Congress has allocated some
$1.6 billion with remarkable, bi-partisan consensus votes spanning
three presidencies and eight U.S. congresses.This assistance is
designed to securesustained civil society reform, to recognize
Armenia's consistent results in market reform and democratization, and
to counter the devastating effect of Azerbaijan's and Turkey's
blockades against this landlocked republic in violation of U.S. and
international law.
Despite the dual blockades, Armenia's economic reform measures are
progressing, as demonstrated by the Wall Street Journal and Heritage
Foundation's `2007 Index of Economic Freedom.' The index, which
measured how 157 countries scored on a list of 50 independent
variables divided into ten broad factors of economic freedom, rated
Armenia 32nd. According to the study, Armenia remains the most
economically free nation in the region, including all nations in the
Commonwealth of Independent States. As a result of these reforms,
Armenia's Gross Domestic Product (GDP) increased by over 10 percent in
2006, capping the sixth consecutive year of double-digit growth.
In December 2005, Armenia was competitively awarded $236 million in
conditional aid over a five year period through the performance-based
Millennium Challenge Account.In order to qualify for this assistance,
Armenia had to meet Millennium Challenge Corporation (MCC) standards
in three categories: ruling justly, investing in people, and fostering
economic freedom.There is an annual recertification process as part of
this multi-year MCC compact.Armenia is one of the first countries in
the world to be granted aid under the Millennium Challenge Account
(MCA).Previously allocated levels of U.S. bilateral assistance to
Armenia played a significant role in accelerating reforms that enabled
it to be competitive in the MCC process.
Unfortunately, the Administration has justified its request for a near
fifty percent cut in bilateral aid by counting the MCA grant against
Armenia in the FY 08 budget.Armenia has been able to effectively
implement economic reforms, in part, because of U.S. reform
assistance.It is counterintuitive at best to reduce such assistance
now that Armenia has won an MCC compact.These assistance programs
serve fundamentally different purposes.USAID assistance has been used
effectively in Armenia to secure and sustain broad economic and
democratization reform.Armenia's MCC Compact is targeted toward rural
roads and irrigation.
2. Assistance to Nagorno Karabakh
USAPAC commends the vision and leadership of the Subcommittee for its
continued support for humanitarian aid to the Nagorno Karabakh
Republic (NKR).We request that the Subcommittee include language
urging USAID to allocate `not less than' $10 million for Karabakh in
FY 2008, while specifically directing that U.S. assistance include a
substantial developmental component.This allocation would be a natural
continuation of the existing U.S. program in Karabakh, and would also
reinforce U.S. efforts to promote regional peace.
Oft-stated U.S. goals for the South Caucasus include initiatives that
promote regional peace, economic and democratic development, and
ensure security against terrorist threats.U.S. assistance to NKR is a
critically important contribution to regional peace.Such assistance
corresponds to U.S. principles of fairness and non-exclusion, and
providing its regional friends with equal opportunities.
Aid granted to date has been extremely effective, but limited in
scope.Since 1999, Congress has provided on average about $4 million a
year in aid to Nagorno Karabakh, focusing on humanitarian needs with
some crossover into development aid.This assistance helped re-build
thousands of homes, reestablish the water supply, improve healthcare
and educational facilities, provide training to medical workers and
loans to NKR's farmers.
However, many challenges remain, as NKR continues to be hampered by
underdeveloped infrastructure.Karabakh is cut off from global sources
of developmental aid due to a complete absence of international
recognition.More ominously, Azerbaijan's leaders continue to boast
about their military build-up and periodically threaten to launch a
new war against Karabakh.Through sound economic policies and tax
incentives, NKR has, in recent years, begun to attract diversified
foreign investments, allowing the war-ravaged economy to start its
recovery and the public to benefit.Therefore, USAPAC strongly urges
the Subcommittee to ensure that additional funding be provided beyond
the traditional level of $5 million annually and authorize this
increased funding for essential, non-humanitarian purposes.
3. U.S. Military Assistance to Armenia
USAPAC requests that equal allocations of $4.3 million in Foreign
Military Financing (FMF) and $1 million in International Military
Education and Training (IMET) funds for Armenia and Azerbaijan.Our
organization greatly appreciates Congress' ongoing commitment to honor
the conditional waiver of Section 907 of the FREEDOM Support Act by
maintaining military assistance parity between Armenia and Azerbaijan.
Azerbaijan's President, Ilham Aliyev, repeatedly boasts that his
country's military expenditures will soon exceed the total annual
budget of the government of Armenia and continues to threaten that he
will launch another war should Azerbaijan's demands not be met in the
Karabakh negotiating process.Under these circumstances, it is
irresponsible for the Administration to renege on its commitment to
maintain military assistance parity by once again proposing
asymmetrical FMF and IMET funding in favor of the wrong party, and
also to continue the Caspian Sea Initiative program with its dual use
implications.This approach in effect rewards and enables Azerbaijan's
for its destabilizing militarization and recurring threats to
attack.Our nation's assistance to Azerbaijan would be much better
spent on battling corruption and promoting economic reform and
democracy considering that nation's rankings in the annual studies
performed by the Heritage Foundation -- 107th out of 157 countries in
the 2007 Index of Economic Freedom - and Transparency International -
130th out of 163 nations in the 2006 Corruption Perceptions Index.
Armenia has responded admirably to U.S. calls for support in global
non-proliferation, counter-terrorism, and anti-drug trafficking
efforts. Armenia has also joined American-led forces in troubled
regions such as Kosovo and Iraq.The Bush Administration has repeatedly
recognized Armenia=80=99s security contributions in overflight rights,
intelligence sharing and deployments of peacekeeping troops.
Further, Armenia has significantly strengthened its relationship with
NATO by finalizing in 2006 an Individual Partnership Action Plan
(IPAP) with the alliance.This IPAP seeks to improve Armenia's
cooperation with NATO by promoting reforms in Armenia's defense
system, and deepening its participation in NATO missions and
programs.In a September 2006 interview, Armenia's Defense Minister
Serge Sargsian noted Armenia=80=99s plans to expand its peace-keeping
battalion to brigade size by 2015, making it fully inter-operable with
NATO forces.
USAPAC strongly believes that it is in the U.S. national interest to
build upon this important area of cooperation with Armenia and to
ensure that the delicate balance of power in the South Caucasus is not
disturbed by providing asymmetrical military aid in favor of
Azerbaijan over Armenia.
4. Section 907 of the FREEDOM Support Act
USAPAC urges the Subcommittee to continue to vigorously monitor the
conditional waiver of Section 907 to ensure the safety of Armenia and
Nagorno Karabakh and to call on the President to submit to Congress
the required report once enacted.Our organization also asks that the
waiver be immediately terminated should the safety of Armenia or
Nagorno Karabakh be challenged or the peace process be compromised due
to any assistance provided to Azerbaijan.
Nagorno Karabakh is a self-governing, democratic republic that is
historically and ethnically Armenian.Upon the dissolution of the
Soviet Union, the citizens of Karabakh via an internationally
monitored referendum exercised their constitutional right to sever
relations with both the Soviet Union and Azerbaijan.In response to
this lawful and peaceful expression of self-determination, Azerbaijan
launched a military campaign to secure by conquest what it had lost by
ballot.
Section 907 was enacted with the overwhelming support of Congress and
the Administration in 1992.This law placed reasonable conditions on
U.S. assistance to Azerbaijan until it ceased all offensive uses of
force against Armenia and Karabakh.In the aftermath of September 11,
Congress granted the President limited and conditional authority to
waive this law.As noted above, the Administration and Congress agreed
to ensure military parity between Armenia and Azerbaijan.
The current cease-fire and demarcation lines are a consequence of
Azerbaijan's failed military offensive.Given the continued threats by
Azerbaijani leaders, USAPAC urges the Subcommittee to closely monitor
the developments in Azerbaijan as they pertain to U.S. security
assistance to ensure the safety of the peoples of Armenia and Nagorno
Karabakh.
5. Peace Process (the Nagorno Karabakh conflict)
USAPAC commends the Subcommittee's efforts to advance a peaceful
resolution of the Nagorno Karabakh conflict and for providing funding
for regional projects and confidence-building measures among the
involved parties.
In furtherance of a settlement, and in support of the measures
discussed at recent NATO and OSCE summits, USAPAC strongly urges that
the Subcommittee support confidence-building measures that would
include strengthening compliance with the cease-fire, studying
post-conflict regional development such as landmine removal, water
management, new transportation routes and infrastructure, establishing
a youth exchange program and other collaborative and humanitarian
initiatives to foster greater understanding among the parties and
reduce hostilities.
6. Conclusion
On behalf of the Armenian-American community, USAPAC expresses our
deep and sincere gratitude to Congress for its steadfast
U.S. assistance and policy support in the South Caucasus generally and
Armenia and Nagorno Karabakh specifically.U.S. assistance has deepened
the mutually beneficial U.S.-Armenia and U.S.-Karabakh
relationships.Such aid has clearly advanced ties based upon the
unshakable shared values and continuing bonds between the United
States and Armenia.
March 28, 2007
U.S.-Armenia Public Affairs Committee (USAPAC)
1518 K Street, NW, Suite M
Washington, DC20005
Contact: Rob Mosher
Telephone: 202-783-0530
USAPAC Urges Higher Allocation of Assistance to Armenia and Nagorno Karabakh
Washington DC - In testimony submitted for the record for the public
hearing on the Fiscal Year 2008 budget, the U.S.-Armenia Public
Affairs Committee (USAPAC) called upon the House State, Foreign
Operations and Related Programs Subcommittee on Appropriations to
support U.S. assistance and policy support in the South Caucasus
generally and Armenia and Nagorno Karabakh specifically.
USAPAC requested that:
·`Not less than' $75 million in bilateral aid be provided to the
Republic of Armenia;
·Language urging USAID to allocate `not less than' $10 million to
Nagorno Karabakh with a substantial developmental component be
included;
·Military assistance parity between Armenia and Azerbaijan be
maintained by providing Armenia with $4.3 million in Foreign Military
Financing funds, and $1 million in International Military Education
and Training assistance;
·No further changes to the conditional waiver of Section 907 of the
FREEDOM Support Act;
·Confidence-building measure language to advance a peaceful resolution
of the Nagorno Karabakh conflict be included.
The full text of the testimony appears below.
The U.S.-Armenia Public Affairs Committee is a 501(c)(4) tax-exempt
and not-for-profit organization established to advance
Armenian-American interests.
***
On behalf of the U.S.-Armenia Public Affairs Committee (USAPAC), Rob
Mosher, Director of Government Affairs, is pleased to provide
testimony to the Subcommittee.
USAPAC requests that `not less than' $75 million in bilateral aid be
provided to the Republic of Armenia under the provisions of chapters
11 and 12 of part I of the Foreign Assistance Act of 1961 and the
FREEDOM Support Act account, for assistance for the Independent States
of the former Soviet Union and for related programs.
USAPAC also recommends that the Subcommittee include language urging
USAID to allocate `not less than' $10 million to Nagorno Karabakh with
a substantial developmental component under the FREEDOM Support Act
account, for assistance for the Independent States of the former
Soviet Union and for related programs.
We respectfully urge the Subcommittee to maintain military assistance
parity between Armenia and Azerbaijan by providing $4.3 million in
Foreign Military Financing funds to Armenia under the provisions of
section 23 of the Arms Export Control Act.In addition, our
organization requests that $1 million in International Military
Education and Training funds be allocated to Armenia under section 541
of the Foreign Assistance Act of 1961.
Recommendations for Fiscal Year (FY) 2008
1. Economic Assistance to Armenia
USAPAC urges the Subcommittee to allocate `not less than' $75 million
in U.S. assistance to Armenia in FY 2008.
We are grateful to the Subcommittee for providing effective annual
levels of humanitarian, reform and development assistance to
Armenia.Since its independence in 1991, Congress has allocated some
$1.6 billion with remarkable, bi-partisan consensus votes spanning
three presidencies and eight U.S. congresses.This assistance is
designed to securesustained civil society reform, to recognize
Armenia's consistent results in market reform and democratization, and
to counter the devastating effect of Azerbaijan's and Turkey's
blockades against this landlocked republic in violation of U.S. and
international law.
Despite the dual blockades, Armenia's economic reform measures are
progressing, as demonstrated by the Wall Street Journal and Heritage
Foundation's `2007 Index of Economic Freedom.' The index, which
measured how 157 countries scored on a list of 50 independent
variables divided into ten broad factors of economic freedom, rated
Armenia 32nd. According to the study, Armenia remains the most
economically free nation in the region, including all nations in the
Commonwealth of Independent States. As a result of these reforms,
Armenia's Gross Domestic Product (GDP) increased by over 10 percent in
2006, capping the sixth consecutive year of double-digit growth.
In December 2005, Armenia was competitively awarded $236 million in
conditional aid over a five year period through the performance-based
Millennium Challenge Account.In order to qualify for this assistance,
Armenia had to meet Millennium Challenge Corporation (MCC) standards
in three categories: ruling justly, investing in people, and fostering
economic freedom.There is an annual recertification process as part of
this multi-year MCC compact.Armenia is one of the first countries in
the world to be granted aid under the Millennium Challenge Account
(MCA).Previously allocated levels of U.S. bilateral assistance to
Armenia played a significant role in accelerating reforms that enabled
it to be competitive in the MCC process.
Unfortunately, the Administration has justified its request for a near
fifty percent cut in bilateral aid by counting the MCA grant against
Armenia in the FY 08 budget.Armenia has been able to effectively
implement economic reforms, in part, because of U.S. reform
assistance.It is counterintuitive at best to reduce such assistance
now that Armenia has won an MCC compact.These assistance programs
serve fundamentally different purposes.USAID assistance has been used
effectively in Armenia to secure and sustain broad economic and
democratization reform.Armenia's MCC Compact is targeted toward rural
roads and irrigation.
2. Assistance to Nagorno Karabakh
USAPAC commends the vision and leadership of the Subcommittee for its
continued support for humanitarian aid to the Nagorno Karabakh
Republic (NKR).We request that the Subcommittee include language
urging USAID to allocate `not less than' $10 million for Karabakh in
FY 2008, while specifically directing that U.S. assistance include a
substantial developmental component.This allocation would be a natural
continuation of the existing U.S. program in Karabakh, and would also
reinforce U.S. efforts to promote regional peace.
Oft-stated U.S. goals for the South Caucasus include initiatives that
promote regional peace, economic and democratic development, and
ensure security against terrorist threats.U.S. assistance to NKR is a
critically important contribution to regional peace.Such assistance
corresponds to U.S. principles of fairness and non-exclusion, and
providing its regional friends with equal opportunities.
Aid granted to date has been extremely effective, but limited in
scope.Since 1999, Congress has provided on average about $4 million a
year in aid to Nagorno Karabakh, focusing on humanitarian needs with
some crossover into development aid.This assistance helped re-build
thousands of homes, reestablish the water supply, improve healthcare
and educational facilities, provide training to medical workers and
loans to NKR's farmers.
However, many challenges remain, as NKR continues to be hampered by
underdeveloped infrastructure.Karabakh is cut off from global sources
of developmental aid due to a complete absence of international
recognition.More ominously, Azerbaijan's leaders continue to boast
about their military build-up and periodically threaten to launch a
new war against Karabakh.Through sound economic policies and tax
incentives, NKR has, in recent years, begun to attract diversified
foreign investments, allowing the war-ravaged economy to start its
recovery and the public to benefit.Therefore, USAPAC strongly urges
the Subcommittee to ensure that additional funding be provided beyond
the traditional level of $5 million annually and authorize this
increased funding for essential, non-humanitarian purposes.
3. U.S. Military Assistance to Armenia
USAPAC requests that equal allocations of $4.3 million in Foreign
Military Financing (FMF) and $1 million in International Military
Education and Training (IMET) funds for Armenia and Azerbaijan.Our
organization greatly appreciates Congress' ongoing commitment to honor
the conditional waiver of Section 907 of the FREEDOM Support Act by
maintaining military assistance parity between Armenia and Azerbaijan.
Azerbaijan's President, Ilham Aliyev, repeatedly boasts that his
country's military expenditures will soon exceed the total annual
budget of the government of Armenia and continues to threaten that he
will launch another war should Azerbaijan's demands not be met in the
Karabakh negotiating process.Under these circumstances, it is
irresponsible for the Administration to renege on its commitment to
maintain military assistance parity by once again proposing
asymmetrical FMF and IMET funding in favor of the wrong party, and
also to continue the Caspian Sea Initiative program with its dual use
implications.This approach in effect rewards and enables Azerbaijan's
for its destabilizing militarization and recurring threats to
attack.Our nation's assistance to Azerbaijan would be much better
spent on battling corruption and promoting economic reform and
democracy considering that nation's rankings in the annual studies
performed by the Heritage Foundation -- 107th out of 157 countries in
the 2007 Index of Economic Freedom - and Transparency International -
130th out of 163 nations in the 2006 Corruption Perceptions Index.
Armenia has responded admirably to U.S. calls for support in global
non-proliferation, counter-terrorism, and anti-drug trafficking
efforts. Armenia has also joined American-led forces in troubled
regions such as Kosovo and Iraq.The Bush Administration has repeatedly
recognized Armenia=80=99s security contributions in overflight rights,
intelligence sharing and deployments of peacekeeping troops.
Further, Armenia has significantly strengthened its relationship with
NATO by finalizing in 2006 an Individual Partnership Action Plan
(IPAP) with the alliance.This IPAP seeks to improve Armenia's
cooperation with NATO by promoting reforms in Armenia's defense
system, and deepening its participation in NATO missions and
programs.In a September 2006 interview, Armenia's Defense Minister
Serge Sargsian noted Armenia=80=99s plans to expand its peace-keeping
battalion to brigade size by 2015, making it fully inter-operable with
NATO forces.
USAPAC strongly believes that it is in the U.S. national interest to
build upon this important area of cooperation with Armenia and to
ensure that the delicate balance of power in the South Caucasus is not
disturbed by providing asymmetrical military aid in favor of
Azerbaijan over Armenia.
4. Section 907 of the FREEDOM Support Act
USAPAC urges the Subcommittee to continue to vigorously monitor the
conditional waiver of Section 907 to ensure the safety of Armenia and
Nagorno Karabakh and to call on the President to submit to Congress
the required report once enacted.Our organization also asks that the
waiver be immediately terminated should the safety of Armenia or
Nagorno Karabakh be challenged or the peace process be compromised due
to any assistance provided to Azerbaijan.
Nagorno Karabakh is a self-governing, democratic republic that is
historically and ethnically Armenian.Upon the dissolution of the
Soviet Union, the citizens of Karabakh via an internationally
monitored referendum exercised their constitutional right to sever
relations with both the Soviet Union and Azerbaijan.In response to
this lawful and peaceful expression of self-determination, Azerbaijan
launched a military campaign to secure by conquest what it had lost by
ballot.
Section 907 was enacted with the overwhelming support of Congress and
the Administration in 1992.This law placed reasonable conditions on
U.S. assistance to Azerbaijan until it ceased all offensive uses of
force against Armenia and Karabakh.In the aftermath of September 11,
Congress granted the President limited and conditional authority to
waive this law.As noted above, the Administration and Congress agreed
to ensure military parity between Armenia and Azerbaijan.
The current cease-fire and demarcation lines are a consequence of
Azerbaijan's failed military offensive.Given the continued threats by
Azerbaijani leaders, USAPAC urges the Subcommittee to closely monitor
the developments in Azerbaijan as they pertain to U.S. security
assistance to ensure the safety of the peoples of Armenia and Nagorno
Karabakh.
5. Peace Process (the Nagorno Karabakh conflict)
USAPAC commends the Subcommittee's efforts to advance a peaceful
resolution of the Nagorno Karabakh conflict and for providing funding
for regional projects and confidence-building measures among the
involved parties.
In furtherance of a settlement, and in support of the measures
discussed at recent NATO and OSCE summits, USAPAC strongly urges that
the Subcommittee support confidence-building measures that would
include strengthening compliance with the cease-fire, studying
post-conflict regional development such as landmine removal, water
management, new transportation routes and infrastructure, establishing
a youth exchange program and other collaborative and humanitarian
initiatives to foster greater understanding among the parties and
reduce hostilities.
6. Conclusion
On behalf of the Armenian-American community, USAPAC expresses our
deep and sincere gratitude to Congress for its steadfast
U.S. assistance and policy support in the South Caucasus generally and
Armenia and Nagorno Karabakh specifically.U.S. assistance has deepened
the mutually beneficial U.S.-Armenia and U.S.-Karabakh
relationships.Such aid has clearly advanced ties based upon the
unshakable shared values and continuing bonds between the United
States and Armenia.