Armenian National Committee of America
1711 N Street NW
Washington, DC 20036
Tel. (202) 775-1918
Fax. (202) 775-5648
Email anca@anca.org
Internet

PRESS RELEASE

FOR IMMEDIATE RELEASE
December 6, 2006
Contact: Elizabeth S. Chouldjian
Tel: (202) 775-1918

ANCA WELCOMES HOUSE ADOPTION OF RESOLUTION TO
BLOCK U.S. SUBSIDY FOR ARMENIA RAILROAD BYPASS

— Rep. Crowley Leads Efforts to Secure
Final Adoption before Congress Adjourns

WASHINGTON, DC – The U.S. House of Representatives, as part of its
efforts to resolve outstanding legislation during an end-of-year
"lame duck" session, today adopted legislation that includes a
provision protecting U.S. taxpayers from funding an unnecessary and
costly proposed railroad between Turkey and Georgia that would, if
built, circumvent Armenia, reported the Armenian National Committee
of America (ANCA).

"Armenian Americans welcome today’s action by the U.S. House of
Representatives and look forward to the Senate’s final approval of
the measure and, of course, its signature into law by the
President," said ANCA Executive Director Aram Hamparian. "We
appreciate this principled stand by Congress against Turkey and
Azerbaijan’s efforts to institutionalize their illegal blockades of
Armenia and Nagorno Karabagh."

On March 8th of this year, responding to a question on the railroad
bypass from Rep. Grace Napolitano (D-CA) during a hearing of the
International Relations Committee, Assistant Secretary of State
Daniel Fried asserted that, "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 Administration
has not allocated or expended any federal agency funds or otherwise
provided financial support for the intended project."

The House action brings the measure – the Export-Import Bank
Reauthorization Bill – in line with the Senate’s version, adopted
earlier this year, and sets the stage for its final adoption this
week. Once finalized by both houses of Congress, the law will go
to the President’s desk for his signature.

Commenting on today’s action, Congressman Joe Crowley (D-NY), who
navigated the measure through the legislative process, noted that,
working in cooperation with Representatives Ed Royce (R-CA) and
Brad Sherman (D-CA), he was pleased to have been able to "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."

The Senate, during its final day in session before the November 7th
mid-term elections, passed the measure by unanimous consent as part
of its reauthorization of the Export-Import Bank. On September
21st the Senate Banking Committee, during its consideration of the
Export-Import bill, had agreed to add the railway language, offered
initially as an amendment by Sen. Robert Menendez (D-NJ), to the
larger measure. The Menendez Amendment was ultimately accepted as a
"manager’s amendment" by Committee Chairman Richard Shelby (R-AL)
and Ranking Democrat Paul Sarbanes (D-MD) and unanimously approved
by the panel.

The U.S. House, this July, adopted the railway language as part of
its version of the Export-Import Bank Reauthorization Bill,
following a successful effort within the Financial Services
Committee, spearheaded by Representatives Joseph Crowley (D-NY),
Brad Sherman (D-CA) and Ed Royce (R-CA), to amend this text to the
EXIM measure. Both versions are based on the South Caucasus
Integration and Open Railroads Act of 2006 (S. 2461 / H.R. 3361),
introduced in the Senate by Rick Santorum (R-PA) and in the House
by Rep. Joe Knollenberg (R-MI), the Co-Chairman of the Armenian
Caucus.

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 bill text concerning the Armenia railroad bypass reads as
follows:

SEC. 11. PROHIBITION ON ASSISTANCE TO DEVELOP OR PROMOTE CERTAIN
RAILWAY CONNECTIONS AND RAILWAY-RELATED CONNECTIONS.

Section 2(b) of the Export-Import Act of 1945 (12 U.S.C. 635(b)) is
amended by adding at the end the following new paragraph:

(13) Prohibition on Assistance To Develop or Promote Certain
Railway Connections and Railway-Related Connections.–The 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 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.

The full text of Congressman Crowley’s remarks are provided below:

#####

Congressman Crowley Statement
Export Import Bank Reauthorization
December 6, 2006

Mr. Chairman, I rise in support of the Export-Import Bank
Reauthorization

This bill will strengthen the Export-Import Bank’s abilities to
allow American companies to compete in the global market as we try
to increase our exports, increase our global competitiveness and
create more and better paying jobs in the USA

This is a bill about exporting products not jobs

Additionally, I am happy to say that both the Senate and the House
versions of this bill include language that I co-authored
pertaining to the nation of Armenia, a great U.S. ally.

My language, done with Congressmen Ed Royce and Brad Sherman,
prohibits the Export-Import Bank from funding any railway projects
from Azerbaijan, through Georgia and Turkey, which specifically
bypasses Armenia. I am very pleased that this language was
included in the final version of this legislation.

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.

For over 10 years, Armenia has fought a 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

Besides possibly creating a regional crisis, this project, if
funded by the Export-Import Bank could cost taxpayers millions. I
do not believe that U.S. taxpayers should be funding a project that
goes against U.S. interests.

I am pleased this good language was added to an already good bill.

Therefore, I urge my colleagues to support the Export-Import
Reauthorization.

From: Emil Lazarian | Ararat NewsPress