Armenian National Committee of America
1711 N Street NW
Washington, DC 20036
Tel: (202) 775-1918
Fax: (202) 775-5648
E-mail: anca@anca.org
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PRESS RELEASE

FOR IMMEDIATE RELEASE
July 28, 2006
Contact: Elizabeth S. Chouldjian
Tel: (202) 775-1918

HOUSE ADOPTS AMENDMENT BLOCKING
U.S. SUBSIDY FOR ARMENIA RAILROAD BYPASS

— Crowley-Sherman-Royce Amendment Adds Provisions of
Rep. Knollenberg’s South Caucasus Integration and
Open Railroads Act to the Ex-IM Bank Reauthorization Act

WASHINGTON, DC – The Armenian National Committee of America (ANCA),
this week, welcomed the adoption by the House of Representatives of
an amendment to block U.S. taxpayer funding for an unnecessary and
costly proposed railroad between Turkey and Georgia that would, if
built, circumvent Armenia and, in the process, undermine the
economic viability of the existing Caucasus railroad route through
Armenia.

The amendment, spearheaded by Representatives Joe Crowley (D-NY),
Ed Royce (R-CA), and Brad Sherman (D-CA), and adopted as part of
the Export-Import Bank Reauthorization Act of 2006, prohibits the
Export-Import Bank from providing any assistance "to develop or
promote any rail connections or railway-related connections that
traverse or connect Baku, Azerbaijan; Tbilisi, Georgia; and Kars,
Turkey, and that specifically exclude cities in Armenia." The
measure was adopted unanimously by the House Financial Services
Committee in June of this year.

The Crowley Amendment is similar to the South Caucasus Integration
and Open Railroads Act of 2006. This measure was introduced in
both the House (H.R.3361), by Representative Joe Knollenberg (R-
MI), and in the Senate (S 2461) by Senator Rick Santorum (R-PA).
The House version has 85 cosponsors; the Senate version has been
cosponsored by Senators Bob Menendez (D-NJ) and Paul Sarbanes (D-
MD). Both measures stress that U.S. policy should oppose the "The
exclusion of Armenia from regional economic and commercial
undertakings in the South Caucasus," noting that such actions
"undermine the United States policy goal of promoting a stable and
cooperative environment in the region."

"We thank Congressman Crowley, his Financial Services Committee
colleagues Ed Royce and Brad Sherman, as well as the authors of the
South Caucasus Integration and Open Railroads Act – Joe
Knollenberg, Frank Pallone and George Radanovich – for securing the
adoption by the House of this measure protecting American taxpayers
from subsidizing an ill-advised and over-priced railroad project
that – at the insistence of Turkey and Azerbaijan – has been
proposed solely for the purpose of excluding Armenia," said Aram
Hamparian, Executive Director of the ANCA.

In debate leading up to the adoption of the bill, Representatives
Crowley, Knollenberg and Carolyn Maloney (D-NY) each cited the
importance of barring U.S. funds from this ill-advised Caucasus
venture which would exclude Armenia. Rep. Crowley noted that, "for
over 10 years, Armenia has fought an illegal blockade imposed on
them by the countries of Turkey and Azerbaijan. These two
countries continually exclude Armenia from regional development. .
. . Exclusion of one country in regional projects only fosters
instability. Having Export-Import Bank support a railway project
which excludes Armenia is not the way to include all countries in
regional development."

Rep. Knollenberg noted that "the design for the new rail line
defies logistical and geographical logic, and intends to prevent
future economic development from reaching Armenia. The proposed
rail link would cost between $400 million and $800 million and
would take years to construct, even though a perfectly workable
rail link that goes through the city of Gyumri, Armenia already
exists and would be fully operational with a few minor repairs.
Mr. Speaker, I commend my colleagues on the House Financial
Services Committee that included this provision into this bill and
I urge support for passage of H.R. 5068."

Rep. Maloney joined her House colleagues in noting that, "as a
proud member of the Congressional Caucus on Armenian Issues and the
representative of a large and vibrant Armenian-American community,
I support the provisions which would prohibit the Export-Import
Bank from funding railroad projects in South Caucasus region that
deliberately exclude Armenia."

A proposed new Caucasus rail line – at the urging of Turkey and
Azerbaijan – would circumvent Armenia. Promoters of the project
have sought, even at the planning stages, to secure U.S. financing
for this undertaking, prompting Congressional supporters of
regional peace and stability to preemptively block such attempts.

In October of last year, the European Commission voiced official
opposition to the proposed Caucasus railroad bypass of Armenia. A
formal statement by the Commission’s Directorate General for
Transport and Energy noted that its construction was both
unnecessary and inefficient in light of the existing railroad
connecting Kars, Gyumri, and Tbilisi.

The Export-Import Bank of the United States (Ex-Im Bank) is the
official export credit agency of the United States. Ex-Im Bank’s
mission is to assist in financing the export of U.S. goods and
services to international markets.

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