Armenian Assembly of America
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PRESS RELEASE
March 16, 2007
CONTACT: Christine Kojoian
E-mail: ckojoian@aaainc.org

MILLENNIUM CHALLENGE CORPORATION CEO TESTIFIES
BEFORE HOUSE PANEL

Rep. Knollenberg Raises Questions about Armenia Compact

Washington, DC – Ambassador John Danilovich, CEO of the Millennium
Challenge Corporation, this week told members of a key House foreign
aid panel that Armenia has made a number of reforms that are both
"positive and constructive," and expressed that elections in Armenia
be "conducted correctly."

Danilovich appeared before the House Appropriations Subcommittee on
State, Foreign Operations and Related Programs to discuss MCC’s
funding needs for Fiscal Year 2008.

Committee Chairwoman Nita Lowey (D-NY), in her opening statement,
stressed that MCC funding was designed to be additive, and should not
take away from other funding programs, such as the Freedom Support
Act.  Her concerns were echoed by Congressman Jesse L. Jackson,
Jr. (D-IL) and Armenian Caucus Co-Chair Rep. Joe Knollenberg (R-MI),
who also noted that Armenia must work to sustain its status as an MCC
recipient.

Last week, Randall L. Tobias, U.S. Director of Foreign Assistance and
USAID Administrator, told Committee Members that MCC funding "is
expecting to disperse 60 million dollars" in FY 2008 alone and that
"together with foreign aid, Armenia will receive 98 million dollars,
or a 34 percent increase."

The Administration has requested $35 million in economic assistance to
Armenia for FY 2008, a reduction of more than 50 percent over the FY
2007 approved funding level of approximately $75 million.

Last year, the United States and Armenia took a major step forward
with the signing of the Millennium Challenge Compact – a five-year
$235.65 million agreement intended to reduce Armenia’s rural poverty
and increase agricultural productivity.

Secretary of State Condoleezza Rice, who took part in the signing
ceremony, called the event a "promising" step in the U.S.-Armenia
partnership and a "testament to the hard work and dedication of the
Armenian people and their elected government."

Established in 2004, MCC is based on the principle that aid is most
effective when it reinforces good governance, economic freedom and
investments in people.  MCC is responsible for the stewardship of the
Millennium Challenge Account (MCA), which receives funds appropriated
by Congress every year.

The Armenian Assembly of America is the largest Washington-based
nationwide organization promoting public understanding and awareness
of Armenian issues. It is a 501 (c) (3) tax-exempt membership
organization.

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NR#2007-034

Editor ‘s Note: Ambassador Danilovich’s full written testimony
submitted for the record is accessible at the following link:

imony-031307-danilovichhacfo.php