Armenian National Committee of America
1711 N Street, NW
Washington, DC 20036
Tel. (202) 775-1918
Fax. (202) 775-5648
[email protected]
PRESS RELEASE
For Immediate Release
September 21, 2006
Contact: Elizabeth S. Chouldjian
Tel: (202) 775-1918
ANCA WELCOMES KEY SENATE PANEL ADOPTION OF
MENENDEZ AMENDMENT TO BLOCK U.S. SUBSIDY FOR ARMENIA
RAILROAD BYPASS
Senate Banking Committee Unanimously Adopts Measure
by Voice Vote
WASHINGTON, DC – The Armenian National Committee of
America (ANCA) today welcomed the vote by a powerful
Senate panel 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.
With a unanimous voice vote earlier today, the Senate
Banking Committee adopted the amendment spearheaded
by Sen. Robert Menendez (D-NJ), and later adopted as
proposed by Committee Chairman Richard Shelby (R-AL)
and Ranking Democrat Paul Sarbanes (D-MD). According
to the measure, the Export-Import Bank "shall not
guarantee, insure or extend (or participate in the
extension of) credit in connection with the export of
any good or service relating to the development or
promotion of any railway connection or railway-
related connection that does not traverse or connect
with Armenia, and does traverse or connect Baku,
Azerbaijan, Tbilisi, Georgia and Kars, Turkey." The
provision is now part of the Senate Export-Import
Bank Reauthorization Bill, also adopted unanimously
by the Committee, paving the way for full Senate
consideration of the legislation.
"We would like to thank Senator Menendez, Chairman
Shelby, Senator Sarbanes, and all members of the
Senate Banking Committee for ensuring that U.S.
taxpayer funds are not wasted in the construction of
an ill-advised railway project, initiated by Turkey
and Azerbaijan, solely to exclude Armenia," stated
ANCA Executive Director Aram Hamparian.
"With this amendment, we are sending a simple message
— that we believe that the United States should
support an integrated and inclusive approach to
economic and regional development in the Caucuses
region," explained Sen. Menendez. "There is already
a railway which connects these countries and passes
through Armenia which could be used to build a trans-
Caucuses railroad. Why would we spend additional
funds to build a new railroad link that goes around
Armenia?"
Sen. Menendez also stressed that the proposed railway
goes counter to U.S. policy in the Caucasus region.
In response to Senators during her confirmation
hearing, U.S. Ambassador to Azerbaijan Anne Derse
noted 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."
The Menendez amendment is based on the South Caucasus
Integration and Open Railroads Act of 2006 (S. 2461),
introduced by Senator Rick Santorum (R-PA) and
cosponsored by Senators Menendez, Sarbanes and Wayne
Allard (R-CO). The House version (H.R.3361),
introduced by Rep. Joe Knollenberg (R-MI), currently
has over 85 cosponsors. 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."
In June, a similar amendment to the House version of
the Export-Import Bank Reauthorization Bill was led
by Rep. Joseph Crowley (D-NY), with the support of
Financial Services Committee colleagues,
Representatives Brad Sherman (D-CA) and Ed Royce (R-
CA). The House adopted the measure in July.
Following Senate committee passage of the measure,
Rep. Crowley noted, "With this amendment, the US
Congress is telling the governments of Turkey and
Azerbaijan that it is wrong to continue their Cold
War style campaign against Armenia and hurt its
economic growth. Their actions against Armenia will
meet with real consequences, and we are taking note
of this inexcusable behavior. By excluding Armenia in
these regional projects, Turkey and Azerbaijan are
putting the finishing touches on a 10-year-old
economic blockade against this republic that has made
great progress in implementing democratic and
economic reforms."
In the days leading up to the vote, ANCA chapters and
activists in key states contacted members of the
Senate Banking Committee in support of the Armenia
railway provision.
The 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 friends of
Armenia to preemptively block such attempts.
In October of 2005, 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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