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ANCA: House Bill Seeks to Block US Aid for Railroad Project Excludin

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  • ANCA: House Bill Seeks to Block US Aid for Railroad Project Excludin

    Armenian National Committee of America
    888 17th St., NW, Suite 904
    Washington, DC 20006
    Tel: (202) 775-1918
    Fax: (202) 775-5648
    E-mail: [email protected]
    Internet: www.anca.org

    PRESS RELEASE

    FOR IMMEDIATE RELEASE
    July 21, 2005
    Contact: Elizabeth S. Chouldjian
    Tel: (202) 775-1918

    ANCA WELCOMES LEGISLATION BLOCKING U.S. AID FOR
    CAUCASUS RAILROAD PROJECTS THAT EXCLUDES ARMENIA

    -- Measure Would Protect U.S. Taxpayers from having
    to Subsidize High-Cost Route Circumventing Armenia

    WASHINGTON, DC - The Armenian National Committee of America
    (ANCA) welcomes the introduction of legislation in the House of
    Representatives prohibiting U.S. assistance for the building of
    railroads traversing the Caucasus that circumvent Armenia. The measure,
    entitled the "South Caucasus Integration and Open Railroads Act of
    2005," is being introduced by Congressman Joe Knollenberg (R-MI),
    Frank Pallone (D-NJ), and George Radanovich (R- CA).

    "We welcome this effort to protect U.S. taxpayers from subsidizing an
    ill-advised and over-priced railroad project that - at the insistence
    of Turkey and Azerbaijan - has been designed to exclude Armenia," said
    Aram Hamparian, Executive Director of the ANCA. "Constructing this
    railroad around Armenia runs directly counter to U.S. foreign policy
    and - as if that wasn't bad enough - makes absolutely no financial
    sense - which is precisely why its sponsors will surely turn to the
    American taxpayer to foot the bill."

    The text of the legislation notes "the exclusion of Armenia from
    regional economic and commercial undertakings in the South Caucasus
    undermines the United States policy goal of promoting a stable and
    cooperative environment in the region." In its operative section,
    the legislation prohibits U.S. assistance "to develop or promote any
    rail connections or railway-related connections that do not traverse
    or connect with Armenia, but do traverse or connect Baku, Azerbaijan;
    Tbilisi, Georgia; and Kars, Turkey. Specific forms of U.S. assistance
    prohibited would include: foreign economic and development aid,
    Overseas Private Investment Corporation, Trade and Development Agency,
    and the Export-Import Bank.

    The ANCA raised this issue publicly as early as June 10th of this
    year when Communications Director Elizabeth S. Chouldjian posed a
    question to the Foreign Minister of Armenia, Vardan Oskanian, during
    his briefing at a National Press Club. Minister Oskanian expressed
    the Armenian government's "concern about this recent consideration by
    Azerbaijan, Georgia, and Turkey to build a new railroad from Kars to
    Tbilisi, linking to an existing Azerbaijani line. They are planning
    on spending something from $600 million to $1 billion to put that
    railroad in place. The problem is that there is such a railroad in
    the region. There is an existing Kars, Gumri, which is an Armenian
    city, Tbilisi, and next to Azerbaijan. The railroad is sitting there,
    rusting now for fifteen years, because Turkey, for political reasons,
    does not allow the trains to cross the Turkish Armenian border. Now,
    having that in place and thinking of building a new one and spending
    $600 million is nonsense." He closed his comments, by stressing that,
    "It is in no one's interest - not the U.S. or European Union or the
    countries involved. I have raised this issue with the Administration
    and they understand, they promised to follow this, and to try to talk
    them out of engaging in this type of senseless, useless activity."

    In May of this year, the president of Azerbaijan, Ilham Aliev, Georgian
    President Mikheil Saakashvili, and Turkey's President Akhmed Nedget
    Sezer announced their intention to construct the railway corridor
    linking Turkey, Tbilisi, and Baku. The project would effectively
    replace the Kars-Gyumri railroad route, which has been blockaded
    by Turkey for more than a decade. The governmental and commercial
    interests involved in the project, estimated at between $600 million
    and $1 billion, will almost certainly turn to the U.S. government for
    financial support, subsidies, favorable lending terms, and low-cost
    risk insurance, as they did for the Baku-Tbilisi-Ceyhan pipeline route.

    #####
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