U.S. IS FOR CONTINUING MCA IN ARMENIA: DIPLOMAT

ARMENPRESS
March 28, 2008

YEREVAN, MARCH 28, ARMENPRESS; Joseph Pennington, U.S. charge
d’affaires in Armenia, said today at a news conference that
president-elect Serzh Sarkisian’s statements show that he is ready
to take steps to put Armenia back on democracy track.

He said the implementation of these steps is the main reason why the
U.S. government has not frozen Armenia’s eligibility for the Millennium
Challenges Account program under which Armenia is to receive a hefty
$236 million extra aid from Washington.

U.S. officials have repeatedly said that the sum’s disbursement is
conditional on democratic reform and improved governance in Armenia.

"We believe it will be just to give Armenia’s new leadership a chance
to fix the situation. If we see positive steps with all negative
trends being e eliminated that will certainly have a positive effect
on Armenia’s eligibility,’ he said.

Pennington said the goal is not to slap sanctions on Armenia, but to
encourage the government in Yerevan to take action to overcome the
aftereffects of the latest developments. He added the government of
the USA does not seek to stop funding of projects in Armenia because
the beneficiaries are those segments of population who need them.

He said if the government does not take genuine steps to improve the
situation the MCC program will be cancelled.

Pennington reminded that in a letter to president Robert Kocharian, the
head of the Millennium Challenge Corporation (MCC), John Danilovich,
warned that the U.S. government agency managing the program could
"suspend or terminate" the five-year aid package because of dramatic
post-election developments in Armenia.

"MCC is reviewing operational aspects of its ongoing work in Armenia
in light of these events, including the suspension of media freedoms
and the imposition of a state of emergency, and is closely monitoring
the situation with U.S. Government and donor colleagues," Danilovich
wrote. He said MCC needs to be certain that "our programs operate in
a democratic environment."

Nevertheless, Pennington said today no decision was made to freeze
the program. He added the U.S. government is for continuation of
the program.