HOUSE AFFIRMS POLICY OF REGIONAL COOPERATION AND REJECTS ATTEMPTS TO ISOLATE ARMENIA

WASHINGTON, JULY 26, NOYAN TAPAN – ARMENIANS TODAY. U.S. House of
Representatives voted on July 25 to help ensure that U.S. regional
cooperation and economic integration is maintained by making certain
that no Export-Import funding is used for a railroad project sponsored
by the Turkish and Azeri governments that seeks to exclude Armenia
from economic and regional transportation opportunities, the Armenian
Assembly of America reported.

Lawmakers approved H.R. 5068, the Export-Import Bank Reauthorization
Act of 2006, which included an amendment by Congressman Joseph Crowley
(D-NY), along with Congressmen Edward Royce (R-CA) and Brad Sherman
(D-CA), ensuring that taxpayer dollars will not be spent on efforts
that would isolate Armenia – which is already facing dual blockades
by Turkey and Azerbaijan.

The amendment, which was unanimously approved by the House Financial
Services Committee last month, states that "The Bank shall not
guarantee, insure, extend credit, or participate in an extension of
credit in connection with the development or promotion of any rail
connections or railway-related connections that do not traverse or
connect with Armenia, and do traverse or connect Baku, Azerbaijan,
Tbilisi, Georgia, and Kars, Turkey."

In a statement submitted for the House record, Crowley said "This
language will assist in promoting stability in the Caucasus region,
help in ending long standing conflicts, and save U.S. taxpayers the
responsibility of funding a project that goes against U.S. interests."

Representative Carolyn Maloney (D-NY), who spoke in favor of
H.R. 5068 on the House floor, said "I support the provisions which
would prohibit the Export-Import Bank from funding railroad projects
in the South Caucasus region that deliberately exclude Armenia."

The Crowley-Royce-Sherman provision was modeled after H.R. 3361,
the South Caucasus Integration and Open Railroads Act, both of which
the Assembly strongly supports. The legislation, which also has a
Senate counterpart, would prohibit U.S. assistance for the promotion
or development of a railroad that would connect the three countries
and exclude Armenia. The House bill, introduced by Armenian Caucus
Co-Chair Joe Knollenberg (R-MI), along with Co-Chair Frank Pallone,
Jr. (D-NJ) and Caucus Member George Radanovich (R-CA), currently
has 87 cosponsors.

The proposed bypass railway is estimated to cost upwards of 0 million
and is expected to take years to construct. The existing line, which
crosses Armenia, is in working condition and could be operational in
a matter of weeks at very little cost. Armenian government officials
have repeatedly said that a new costly railway is unnecessary given
that a railroad linking Armenia, Georgia and Turkey already exists.

"Passage of H.R. 5068 with the Crowley-Royce-Sherman provision,
which was modeled after H.R. 3361 helps ensure that the U.S. will
not be party to the flawed policies of Armenia’s neighbors," said
Executive Director Bryan Ardouny.

Ardouny also drew a parallel to the Baku-Tbilisi-Ceyhan pipeline
and noted that when the pipeline was first announced, it was in
the context of supporting multiple pipelines but instead all routes
bypassed Armenia.

"This time we must ensure that Armenia is not bypassed," Ardouny said.

Recently, U.S. Assistant Secretary of State Daniel Fried reiterated
U.S. policy in the South Caucasus which seeks to promote regional
cooperation and economic integration.

"The U.S. Government strongly encourages regional integration in the
Caucasus, including in our discussions with Armenia, Azerbaijan,
Turkey, and other countries in the region," Fried said. "Removing
trade barriers would improve regional integration and enhance economic
cooperation and development. The proposed railway would bypass Armenia
and thus not be beneficial to regional integration."

Similarly, Ambassador to Azerbaijan Anne Derse explained that
"Because the proposed railway would bypass Armenia, and thus not be
beneficial to regional integration, we have no plans to support such
a railway financially."

Azerbaijani President Ilham Aliyev told an Azeri news agency last
summer that, "We are currently working on a new project – a new rail
road Kars-Akhalkalaki-Tbilisi-Baku..If we succeed with this project,
the Armenians will end in complete isolation, which would create an
additional problem for their future, their already bleak future…"

Meanwhile, a meeting of transport ministers from Azerbaijan, Turkey
and Georgia, slated for mid-June, was postponed following action by
the U.S. Congress to prohibit American companies from participating
in the railway construction. The meeting is scheduled to take place
on July 27 in Astana, Kazakhstan.

The Export-Import Bank is a federal government agency which provides
loans, loan guarantees and insurance to support exports of U.S. goods
and services to international markets.