PROPOSAL CONCERNING RENDERING ECONOMIC ASSISTANCE NOT ONLY TO GEORGIA, BUT ALSO TO ARMENIA TO BE CONSIDERED AT U.S. CONGRESS

DeFacto Agency
Sept 10 2008
Armenia

YEREVAN, 10.09.08. DE FACTO. Hearing entitled "U.S.-Russia Relations
in the Aftermath of the Georgia Crisis" was held today, the Armenian
Assembly of America (Assembly) reports.

Testifying on behalf of the Bush Administration, Daniel Fried,
Assistant Secretary of State for European and Eurasian Affairs,
starting with the region’s history, told Members of Congress that the
collapse of the former Soviet Union "was marked by ethnically-based
violence, especially in the South Caucasus." Fried also explained,
in greater detail, the Administration’s $1 billion economic support
package that Secretary of State Condoleezza Rice had announced on
September 3.

During a question and answer session with Secretary Fried,
Representative Brad Sherman (D-CA), citing a September 3, report from
Radio Free Europe/Radio Liberty entitled, "Armenia Claims Huge Losses
from Georgian Crisis," pressed the Administration whether they planned
on providing additional aid to Armenia.

Fried commented that Armenia was already a recipient of significant
amount of aid, although he acknowledged that Armenia had been impacted
by the crisis. Sherman added that due to strife, Armenia had suffered
an estimated $680 million in damage to its economy and again asked
if additional aid would be provided. Fried responded that there would
be more, but would have to look into the figure as to an amount.

To note, the House Appropriations Committee will need to review
the aid package, of which the Assembly last week sent a letter to
Members of Congress pointing out the impact not only for Georgia,
but Armenia as well.

In the letter, the Assembly wrote, in part, that: "Armenia, as a
land-locked nation facing dual blockades by its neighbors, Turkey
and Azerbaijan, is forced to orient on a north-south axis for trade
and shipment of goods and supplies. As such, the bombing of ports in
Georgia and damage to rail lines therein has not only caused hardships
for the people of Georgia, but also for Armenia, most prominently is
the shortage of fuel."

"The Administration has an important opportunity to reinforce stated
U.S. policy goals of regional cooperation and economic integration in
the South Caucasus region," said Congressman Sherman. "As such, I was
deeply troubled that the Administration failed to take into account
the impact that this recent crisis has had on our ally Armenia. We must
ensure that any aid package also includes Armenia," Sherman concluded.

"We commend Chairman Berman for holding this timely hearing and applaud
Congressman Sherman for making sure that the needs of Armenia, as
a result of this crisis, will be taken into account," said Assembly
Executive Director Bryan Ardouny.