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ANCA: House Adopts Amendment Blocking US Subsidy for Armenia Bypass

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  • ANCA: House Adopts Amendment Blocking US Subsidy for Armenia Bypass

    Armenian National Committee of America
    1711 N Street NW
    Washington, DC 20036
    Tel: (202) 775-1918
    Fax: (202) 775-5648
    E-mail: [email protected]
    Internet: www.anca.org

    PRESS RELEASE

    FOR IMMEDIATE RELEASE
    July 28, 2006
    Contact: Elizabeth S. Chouldjian
    Tel: (202) 775-1918

    HOUSE ADOPTS AMENDMENT BLOCKING
    U.S. SUBSIDY FOR ARMENIA RAILROAD BYPASS

    -- Crowley-Sherman-Royce Amendment Adds Provisions of
    Rep. Knollenberg's South Caucasus Integration and
    Open Railroads Act to the Ex-IM Bank Reauthorization Act

    WASHINGTON, DC - The Armenian National Committee of America (ANCA),
    this week, welcomed the adoption by the House of Representatives of
    an amendment to block U.S. taxpayer funding for an unnecessary and
    costly proposed railroad between Turkey and Georgia that would, if
    built, circumvent Armenia and, in the process, undermine the
    economic viability of the existing Caucasus railroad route through
    Armenia.

    The amendment, spearheaded by Representatives Joe Crowley (D-NY),
    Ed Royce (R-CA), and Brad Sherman (D-CA), and adopted as part of
    the Export-Import Bank Reauthorization Act of 2006, prohibits the
    Export-Import Bank from providing any assistance "to develop or
    promote any rail connections or railway-related connections that
    traverse or connect Baku, Azerbaijan; Tbilisi, Georgia; and Kars,
    Turkey, and that specifically exclude cities in Armenia." The
    measure was adopted unanimously by the House Financial Services
    Committee in June of this year.

    The Crowley Amendment is similar to the South Caucasus Integration
    and Open Railroads Act of 2006. This measure was introduced in
    both the House (H.R.3361), by Representative Joe Knollenberg (R-
    MI), and in the Senate (S 2461) by Senator Rick Santorum (R-PA).
    The House version has 85 cosponsors; the Senate version has been
    cosponsored by Senators Bob Menendez (D-NJ) and Paul Sarbanes (D-
    MD). Both measures stress that U.S. policy should oppose the "The
    exclusion of Armenia from regional economic and commercial
    undertakings in the South Caucasus," noting that such actions
    "undermine the United States policy goal of promoting a stable and
    cooperative environment in the region."

    "We thank Congressman Crowley, his Financial Services Committee
    colleagues Ed Royce and Brad Sherman, as well as the authors of the
    South Caucasus Integration and Open Railroads Act - Joe
    Knollenberg, Frank Pallone and George Radanovich - for securing the
    adoption by the House of this measure protecting American taxpayers
    from subsidizing an ill-advised and over-priced railroad project
    that - at the insistence of Turkey and Azerbaijan - has been
    proposed solely for the purpose of excluding Armenia," said Aram
    Hamparian, Executive Director of the ANCA.

    In debate leading up to the adoption of the bill, Representatives
    Crowley, Knollenberg and Carolyn Maloney (D-NY) each cited the
    importance of barring U.S. funds from this ill-advised Caucasus
    venture which would exclude Armenia. Rep. Crowley noted that, "for
    over 10 years, Armenia has fought an illegal blockade imposed on
    them by the countries of Turkey and Azerbaijan. These two
    countries continually exclude Armenia from regional development. .
    . . Exclusion of one country in regional projects only fosters
    instability. Having Export-Import Bank support a railway project
    which excludes Armenia is not the way to include all countries in
    regional development."

    Rep. Knollenberg noted that "the design for the new rail line
    defies logistical and geographical logic, and intends to prevent
    future economic development from reaching Armenia. The proposed
    rail link would cost between $400 million and $800 million and
    would take years to construct, even though a perfectly workable
    rail link that goes through the city of Gyumri, Armenia already
    exists and would be fully operational with a few minor repairs.
    Mr. Speaker, I commend my colleagues on the House Financial
    Services Committee that included this provision into this bill and
    I urge support for passage of H.R. 5068."

    Rep. Maloney joined her House colleagues in noting that, "as a
    proud member of the Congressional Caucus on Armenian Issues and the
    representative of a large and vibrant Armenian-American community,
    I support the provisions which would prohibit the Export-Import
    Bank from funding railroad projects in South Caucasus region that
    deliberately exclude Armenia."

    A proposed new Caucasus rail line - at the urging of Turkey and
    Azerbaijan - would circumvent Armenia. Promoters of the project
    have sought, even at the planning stages, to secure U.S. financing
    for this undertaking, prompting Congressional supporters of
    regional peace and stability to preemptively block such attempts.

    In October of last year, the European Commission voiced official
    opposition to the proposed Caucasus railroad bypass of Armenia. A
    formal statement by the Commission's Directorate General for
    Transport and Energy noted that its construction was both
    unnecessary and inefficient in light of the existing railroad
    connecting Kars, Gyumri, and Tbilisi.

    The Export-Import Bank of the United States (Ex-Im Bank) is the
    official export credit agency of the United States. Ex-Im Bank's
    mission is to assist in financing the export of U.S. goods and
    services to international markets.

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