Armenian National Committee of America
888 17th St., NW, Suite 904
Washington, DC 20006
Tel: (202) 775-1918
Fax: (202) 775-5648
E-mail: anca@anca.org
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PRESS RELEASE

FOR IMMEDIATE RELEASE
July 21, 2005
Contact: Elizabeth S. Chouldjian
Tel: (202) 775-1918

ANCA WELCOMES LEGISLATION BLOCKING U.S. AID FOR
CAUCASUS RAILROAD PROJECTS THAT EXCLUDES ARMENIA

— Measure Would Protect U.S. Taxpayers from having
to Subsidize High-Cost Route Circumventing Armenia

WASHINGTON, DC – The Armenian National Committee of America
(ANCA) welcomes the introduction of legislation in the House of
Representatives prohibiting U.S. assistance for the building of
railroads traversing the Caucasus that circumvent Armenia. The measure,
entitled the “South Caucasus Integration and Open Railroads Act of
2005,” is being introduced by Congressman Joe Knollenberg (R-MI),
Frank Pallone (D-NJ), and George Radanovich (R- CA).

“We welcome this effort to protect U.S. taxpayers from subsidizing an
ill-advised and over-priced railroad project that – at the insistence
of Turkey and Azerbaijan – has been designed to exclude Armenia,” said
Aram Hamparian, Executive Director of the ANCA. “Constructing this
railroad around Armenia runs directly counter to U.S. foreign policy
and – as if that wasn’t bad enough – makes absolutely no financial
sense – which is precisely why its sponsors will surely turn to the
American taxpayer to foot the bill.”

The text of the legislation notes “the exclusion of Armenia from
regional economic and commercial undertakings in the South Caucasus
undermines the United States policy goal of promoting a stable and
cooperative environment in the region.” In its operative section,
the legislation prohibits U.S. assistance “to develop or promote any
rail connections or railway-related connections that do not traverse
or connect with Armenia, but do traverse or connect Baku, Azerbaijan;
Tbilisi, Georgia; and Kars, Turkey. Specific forms of U.S. assistance
prohibited would include: foreign economic and development aid,
Overseas Private Investment Corporation, Trade and Development Agency,
and the Export-Import Bank.

The ANCA raised this issue publicly as early as June 10th of this
year when Communications Director Elizabeth S. Chouldjian posed a
question to the Foreign Minister of Armenia, Vardan Oskanian, during
his briefing at a National Press Club. Minister Oskanian expressed
the Armenian government’s “concern about this recent consideration by
Azerbaijan, Georgia, and Turkey to build a new railroad from Kars to
Tbilisi, linking to an existing Azerbaijani line. They are planning
on spending something from $600 million to $1 billion to put that
railroad in place. The problem is that there is such a railroad in
the region. There is an existing Kars, Gumri, which is an Armenian
city, Tbilisi, and next to Azerbaijan. The railroad is sitting there,
rusting now for fifteen years, because Turkey, for political reasons,
does not allow the trains to cross the Turkish Armenian border. Now,
having that in place and thinking of building a new one and spending
$600 million is nonsense.” He closed his comments, by stressing that,
“It is in no one’s interest – not the U.S. or European Union or the
countries involved. I have raised this issue with the Administration
and they understand, they promised to follow this, and to try to talk
them out of engaging in this type of senseless, useless activity.”

In May of this year, the president of Azerbaijan, Ilham Aliev, Georgian
President Mikheil Saakashvili, and Turkey’s President Akhmed Nedget
Sezer announced their intention to construct the railway corridor
linking Turkey, Tbilisi, and Baku. The project would effectively
replace the Kars-Gyumri railroad route, which has been blockaded
by Turkey for more than a decade. The governmental and commercial
interests involved in the project, estimated at between $600 million
and $1 billion, will almost certainly turn to the U.S. government for
financial support, subsidies, favorable lending terms, and low-cost
risk insurance, as they did for the Baku-Tbilisi-Ceyhan pipeline route.

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