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  • US continues large-scale assistance to Armenia

    Eurasia Daily Monitor, DC
    The Jamestown Foundation
    July 8 2005

    U.S. CONTINUES LARGE-SCALE ASSISTANCE TO ARMENIA

    By Emil Danielyan

    Friday, July 8, 2005


    Reflecting the influence of the Armenian community in the United
    States, the U.S. Congress is blocking yet another attempt by the
    White House to sizably cut long-running American assistance to
    Armenia. The small South Caucasus state is thus due to remain one of
    the world's leading per-capita recipients of U.S. economic aid, more
    than $1.6 billion since 1992.

    The House of Representatives voted on June 28 to approve its version
    of the U.S. foreign aid bill for the next fiscal year, which
    allocates $67.5 million for Armenia -- up from the $55 million
    requested by the administration of President George W. Bush. The U.S.
    Senate's Appropriations Committee raised the number to $75 million,
    the amount Armenia will receive in 2005.

    Citing growing budgetary constraints, the Bush administration has
    steadily reduced the level of U.S. assistance to former Soviet
    republics in recent years. Armenia has been the least affected of
    them and has its million-strong Diaspora in America to thank for
    that. Armenian-American organizations were instrumental in the latest
    aid allocations that followed a familiar pattern. In 2003, for
    example, the Bush administration requested $45 million for Armenia
    before legislators raised the sum to $75 million.

    One of the most powerful ethnic lobbies on Capitol Hill essentially
    consists of the Armenian Assembly of America, which is mostly
    sponsored by wealthy individuals, and the more nationalist Armenian
    National Committee of America (ANCA) known for its well-organized
    grassroots structures. The two groups were behind the creation of the
    Congressional Caucus on Armenian Issues in the late 1990s.

    The caucus currently numbers 142 members, making it the largest
    bipartisan ethnic coalition in the House of Representatives. Most of
    those congressmen are from California, New York, New Jersey,
    Michigan, and Massachusetts, the states with the highest
    concentration of Americans of Armenian descent. But there are also
    members who represent places like Indiana, Kentucky, or Oregon where
    the Armenian presence is minuscule.

    One of the Armenian lobby's key allies in the Senate, Mitch
    McConnell, is also from Kentucky. McConnell is the Senate majority
    whip and chairman of the Foreign Operations Appropriations
    Subcommittee. Both the Armenian Assembly and the ANCA personally
    thanked the ranking Republican for the latest aid allocation.

    One of the two Armenian Caucus co-chairs, Representative Frank
    Pallone, says the Armenian-Americans have managed to pull together so
    many lawmakers because they "work very hard." The New Jersey Democrat
    is bound to secure strong Armenian support for his plans to run for
    the Senate.

    The U.S.-Armenian community may have built a strong support base in
    Congress, but its influence on the White House and the State
    Department remains much weaker. This situation exists in part because
    ethnic Armenians are mostly concentrated in the traditional
    Democratic strongholds where the outcome of the last two U.S.
    presidential elections was never in doubt. Bush didn't have to woo
    ethnic Armenians simply because very few of them live in "swing
    states" like Florida and Ohio. His administration therefore has no
    qualms about its hitherto successful efforts to prevent a
    congressional resolution describing the 1915-18 slaughter of an
    estimated 1.5 million Armenians in Ottoman Turkey as genocide.

    Such a resolution has for decades been a key aim of Armenian lobbying
    activity. Some Armenian-American activists feel they can eventually
    overcome White House opposition by further expanding the Armenian
    Caucus and turning it into a House majority.

    The Bush administration clearly had to reckon with the Armenian
    community's clout when it included Armenia last year in the list of
    17 developing nations eligible for additional multimillion-dollar
    assistance under Washington's Millennium Challenge Account (MCA)
    program. Neighboring Georgia was the only other ex-Soviet state
    selected for the scheme, which is designed to promote political and
    economic reform around the world.

    Georgia is increasingly emerging as a U.S. bulwark in the South
    Caucasus, due to its new leadership's pro-Western foreign policy.
    Still, it may get less American economic aid in 2006 than Armenia,
    which continues to be seen as Russia's key regional ally.
    Furthermore, close defense links with Moscow have not prevented
    Yerevan from securing over $20 million in U.S. military assistance
    since 2002. It is expected to make up at least $5.75 million in
    fiscal year 2006.

    That assistance was the main condition for Congress's decision in the
    wake of the September 11 terrorist attacks to allow the Bush
    administration to suspend the decade-long aid restrictions that had
    been imposed on Azerbaijan under Armenian-American pressure. Congress
    has also forced the administration to maintain parity in military
    funding to Armenia and Azerbaijan, despite the latter's greater
    contribution to the U.S. war effort in Iraq. Armenian-American
    lobbyists say Yerevan's highly unpopular decision to send a small
    army contingent to Iraq last January helped to neutralize senior
    Pentagon officials who question the wisdom of helping the Armenian
    military.

    Azerbaijan has also been infuriated by the continuing provision of
    direct U.S. government aid to Karabakh, which will equal at least $3
    million next year. Bypassing the Azerbaijani government, the money is
    mainly used for rebuilding homes and infrastructure destroyed during
    the 1991-94 Armenian-Azerbaijani war. Baku has repeatedly complained
    that the Americans thereby undermine its internationally recognized
    sovereignty over the Armenian-controlled territory.

    "There is no way that any negotiation should result in Karabakh going
    back to Azerbaijan," says Pallone. "Karabakh is an independent state
    and Karabakh must remain Armenian." Years of successful Armenian
    lobbying have meant that many other U.S. lawmakers would also
    subscribe to this view.

    (Statements by the Armenian Assembly of America, June 29, November
    22, 2004; Statements by the Armenian National Committee of America,
    June 30, November 23, 2004; Interview with Frank Pallone, June 9,
    RFE/RL Armenia Report, December 9, 2003)
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