ANCA Urges Zeroing Out Mil Aid to Azerbaijan in House Testimony

Armenian National Committee of America
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PRESS RELEASE
March 24, 2008
Contact: Elizabeth S. Chouldjian
Tel: (202) 775-1918

ANCA CALLS FOR ZEROING OUT MILITARY AID TO AZERBAIJAN
IN TESTIMONY TO CONGRESSIONAL FOREIGN AID PANEL

— Government Affairs Director Outlines Full Range
of Armenian American Foreign Aid Priorities

WASHINGTON, DC – The Armenian National Committee of America (ANCA)
offered the Armenian American community’s perspective on six key
areas of U.S. foreign aid policy in testimony submitted to House
Appropriations Subcommittee on State-Foreign Operations.

ANCA Government Affairs Director Kate Nahapetian outlined the
recommendations of the Armenian American community to the panel,
which is currently deliberating the Fiscal Year 2009 (FY09) foreign
aid bill. Nahapetian noted the critical role the United States has
played in assisting Armenia against aggression, dating back to the
genocide. She also outlined the threats Armenia faces today, and
stressed the need to cut all military aid to Azerbaijan, because of
its recent attacks against Nagorno Karabagh and increasing
indications it plans to renew its aggression against Armenians. In
the worst cease-fire violation in over a decade, Azerbaijan
attacked Karabagh in early March, claiming the lives of at least
eight people.

"Clearly, Azerbaijan should not receive U.S. military aid as long
as it threatens to use, or in fact actually employs, its large and
growing arsenal in offensive actions against Armenians," explained
Nahapetian. "Sending military aid to Azerbaijan in the face of
these threats only emboldens Baku to continue its belligerence,
while, at the same time, threatening stability, and undermining the
U.S. role as an impartial mediator," continued Nahapetian.

The six key issues Nahapetian addressed in detail in her testimony
were:

1) Zeroing out of military aid to Azerbaijan:
2) $70 Million in Economic Support Funds for Armenia
3) $10 million in direct development aid to Nagorno Karabagh
4) Removing barriers to U.S. relations with Nagorno Karabagh
5) $5 million in military assistance to Armenia
6) Maintaining Section 907 of the FREEDOM Support Act

The full text of the ANCA’s testimony is provided below.

#####

Armenian National Committee of America

"The Armenian American Community
and U.S. Foreign Assistance Policy"

Presented by Kate Nahapetian,
Government Affairs Director

Testimony before the House Appropriations Subcommittee
on State, Foreign Operations, and Related Programs

March 20, 2008

Thank you Chairwoman Lowey, Ranking Member Wolf, and Members of the
House Appropriations Subcommittee on State, Foreign Operations, and
Related Programs for once again providing the Armenian National
Committee of America with the opportunity to contribute the views
of our community to your discussions concerning the foreign aid
bill.

As members of this panel know, the enduring friendship between the
American and Armenian peoples dates back to the era of the Armenian
Genocide. American leaders, such as President Woodrow Wilson,
diplomats, most notably U.S. Ambassador to the Ottoman Empire Henry
Morgenthau, and relief workers, among them American Red Cross
founder Clara Barton, played a critical role in protesting Ottoman
Turkey’s systematic murder of the Armenian people and in helping to
alleviate the suffering of those who survived. These noble
efforts, to a very great extent, marked the introduction of America
on the world stage as an advocate for international justice, human
rights and humanitarian values. It is fitting then that we
continue, today, to promote these values through a robust foreign
aid package to Armenia and Nagorno Karabagh.

The U.S. and the Armenian governments have steadily expanded
relations based on a history of shared values and common interests
in a secure stable Caucasus and Caspian region. I would like,
today, to offer our thought about how we can help write the next
chapter in this partnership by briefly outlining our foreign aid
priorities for the coming year.

1) Zeroing out of military aid to Azerbaijan:

We should not provide military aid to a state that continues to
threaten the Armenian people.

On February 15th of this year, 52 U.S. Representatives called upon
the Secretary of State to challenge Azerbaijan’s threats of war,
and to hold its leaders accountable for undermining our long-
standing policy of fostering peace and stability in the South
Caucasus. The Azerbaijani leadership, ignoring these warnings,
acted on their threats in early March of 2008, by launching attacks
against defensive positions in the Mardakert region of northeast
Nagorno Karabagh. This attack, the worst cease-fire violation in
over a decade, tragically claimed at least eight lives.

The day before this Azerbaijani attack on Karabagh on March 4,
2008, Reuters reported that Azerbaijan’s President Ilham Aliev was
ready to take Nagorno Karabagh by force and was, in fact, buying
the military equipment to do exactly that. The Economist reported
in November of 2007 that President Aliev had promised that his
military budget, now $1 billion a year, would overtake Armenia’s
entire budget. On October 30th Aliev said, "We should be ready at
any moment to liberate the occupied territories by military means."

Clearly, Azerbaijan should not receive U.S. military aid as long as
it threatens to use, or in fact actually employs, its large and
growing arsenal in offensive actions against Armenians. We should
not, in any way, add to Azerbaijan’s military capabilities until
after Azerbaijan’s leaders renounce aggression, cease their threats
of violence, and affirm their commitment to a peaceful settlement
of the Nagorno Karabagh issue. Sending military aid to Azerbaijan
in the face of these threats only emboldens Baku to continue its
belligerence, while, at the same time, threatening stability, and
undermining the U.S. role as an impartial mediator.

In addition to zeroing out military aid to Azerbaijan, Congress
should carefully monitor all aid provided to Azerbaijan, including
the Caspian Guard Program, Nonproliferation, Antiterrorism, De-
mining and Related Assistance, and other military-related programs,
to ensure that this aid neither enables nor encourages renewed
Azerbaijani aggression.

2) $70 Million in Economic Support Funds for Armenia

We call for language setting at least $70 million in FY 2009
economic aid to Armenia.

Since Armenia’s independence in 1991, U.S. aid has played a vital
role in meeting humanitarian needs, fostering democratic reforms,
and building self-sustaining economic growth. Enduring an over
decade-long illegal blockade by both Turkey and Azerbaijan,
economic assistance to land-locked Armenia is crucial. These
blockades have been estimated by the World Bank as costing Armenia
at least $720 million a year. Democracy assistance is especially
important today as Armenia confronts new challenges, particularly
those following the most recent Presidential elections. While
viewed favorably by the Organization for Security and Cooperation
in Europe and other international observers, the tensions that
followed this vote underscore the need for U.S. support for the
further strengthening of democratic institutions.

Our support for Armenia truly represents an investment in freedom.
Today, just 17 years after freeing itself from Communist rule,
Armenia is rated one of the freest economies in the world, and one
of the least corrupt in the region. The Wall Street Journal-
Heritage Foundation’s most recent Index of Economic Freedom ranked
Armenia as the 28th freest economy in the world, ahead of Spain,
Austria, and Georgia, and far ahead of its neighbors Turkey and
Azerbaijan.

Today, with U.S. help, Armenia is a member of the World Trade
Organization, International Monetary Fund, and World Bank; has
signed agreements with the U.S. on trade, investments, and the
protection of investments; holds regular Economic Task Force
meetings, and, in 2005, was granted Permanent Normal Trade
Relations. In large part as a result of reforms supported by U.S.
aid, Armenia’s economy has grown by more than 10% in each of the
past 6 years, more than doubling Armenia’s Gross National Product.

We are encouraged by Armenia’s participation in the Millennium
Challenge Account. We must, however, stress that the
Administration made explicitly clear to Congress when this program
was initiated that it would not be a substitute for normal foreign
aid but would rather serve to augment it. In the case of Armenia,
the MCA is designed to help alleviate poverty through the
strengthening of Armenia’s rural infrastructure, primarily in the
areas of roads and irrigation. Economic aid, by contrast, provides
concrete and vitally needed assistance for key reforms in
democratic governance, health care, social protection, and
education.

3) $10 million in direct development assistance for Nagorno
Karabagh

We encourage the allocation of no less than $10 million in FY09
assistance for development programs in Nagorno Karabagh. Nagorno
Karabagh has a solid track record, since declaring independence in
1991, of building a durable democracy, a free market economy, a
society based on respect for human rights – as illustrated by the
conduct of four parliamentary and three presidential elections, all
praised by international monitors as free and fair.

Retargeting U.S. aid programs from humanitarian to development aid
is long overdue. For the past decade, the U.S. Congress has played
a unique and vital role in providing direct aid to meet pressing
humanitarian needs in Nagorno Karabagh, helping its people to
rebuild their lives after years of devastating Azerbaijani
aggression and ethnic cleansing. The success of these programs in
leveraging local efforts has dramatically reduced Nagorno
Karabagh’s once-daunting humanitarian challenges. Making the shift
>From humanitarian to developmental aid will allow us to support
democracy, economic reform, and the prospects for peace in a
strategically important region. Vital projects that would benefit
>From such funding include the establishment of badly needed medical
facilities, which cannot be entirely funded currently by local
sources. Development aid will further strengthen democracy through
election reforms and civic and media programs, represent a powerful
symbol of U.S. support for Nagorno Karabagh’s commitment to a fair
and lasting peace, and help create conditions conducive to greater
regional stability.

4) Restoring U.S. diplomatic relations with Nagorno Karabagh

We call on the Subcommittee to include language urging the
Administration to support U.S. diplomatic relations with Nagorno
Karabagh, along the following lines:

"The Appropriations Committee directs the State Department to move
in the direction of diplomatic relations with Nagorno-Karabagh. An
open dialogue between the United States and the people of Nagorno-
Karabagh will serve to alleviate international threats to Nagorno-
Karabagh and aid in a peaceful resolution to regional conflicts."

The time has come for ending outdated and counter-productive
restrictions on the free exchange of ideas between U.S. officials
and the democratically elected leaders of Nagorno Karabagh.

These outdated restrictions – put in place by the State Department
more than 15 years ago – stand in the way of this long overdue
dialogue. They prevent meetings, block travel, prohibit exchange
programs, and bar cooperation on public health, counter-
proliferation, anti-narcotics, and other issues. These
restrictions even hinder direct oversight of U.S. assistance
programs in Nagorno Karabagh. The only direct channel of
communication left open is through the OSCE Minsk Group. The
continuation of these restrictions only place artificial limits on
our understanding of the region, hinder our diplomatic efforts to
reach a durable peace, and undermine our effectiveness in promoting
the growth of democracy.

5) $5 million in military aid to Armenia

We call for $4 million in Foreign Military Financing and $1 million
in International Military Education and Training. Military aid
plays a vital role in strengthening the U.S.-Armenia partnership
and in demonstrating and deepening America’s commitment to
Armenia’s security. The growth of this relationship reflects the
shared values and a common concern for regional and international
peace and stability. The following are among the most notable
areas of cooperation:

* Armenia is partner in the global war on terror, contributes
troops to Coalition operations in Iraq, and supplies forces to
support NATO peacekeeping in Kosovo.

* To help ensure the transparency of its Armed Forces and enhance
the spirit of cooperation with the U.S, Armenia worked with the
Department of Defense to conduct a successful Defense Assessment
and to help prepare Armenia’s first National Security Strategy.

* With U.S. help, the Armenian military created a modern and well-
equipped de-mining training center, and established a State
Partnership Program with Kansas.

* Armenia has ratified a Status of Forces Agreement with NATO and
concluded a bilateral Article 98 Agreement, providing safeguards to
U.S. military personnel in Armenia.

6) Section 907 of the FREEDOM Support Act

We ask the panel to reject any attempts to weaken Section 907 of
the FREEDOM Support Act and to ensure the Administration’s strict
compliance with its conditional authority to waive this law.

As members of this Subcommittee know, Section 907 of the Freedom
Support Act, a law first enacted more than 15 years ago, stands as
a statement of United States opposition to Azerbaijan’s blockades
and other aggressive uses of force against Armenia and Nagorno
Karabagh. Sadly, despite this law, Azerbaijan has refused either
to lift its illegal blockades or to agree to a purely peaceful path
to the resolution of the Nagorno Karabagh conflict. In fact, as I
noted earlier, Azerbaijan has actually increased its aggression
against Nagorno Karabagh.

We call for Congressional oversight over the President’s
conditional authority to waive Section 907, which requires him to
certify that no U.S. aid will be used for offensive purposes. In
light of Azerbaijan’s escalating rhetoric, outright attacks, and
growing military arsenal – made all the larger through U.S.
military aid – we do not today believe that such a certification is
supported by the facts on the ground. We urge this panel to
carefully investigate this provision of law.

In closing, please know that the ANCA respects and values your
friendship and the Subcommittee’s long-standing leadership on
issues of concern to Armenian Americans.

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