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The <strong>Armenia</strong>n Reporter | March 28, 2009<br />

<strong>National</strong><br />

Washington briefing<br />

by Emil Sanamyan<br />

<strong>Armenia</strong>n Caucus cochairs<br />

make aid, policy<br />

proposals<br />

The United States should increase<br />

engagement with <strong>Armenia</strong> <strong>and</strong><br />

Nagorno-Karabakh <strong>and</strong> tighten<br />

existing restrictions on ties with<br />

Azerbaijan, Reps. Frank Pallone<br />

(D.-N.J.) <strong>and</strong> Mark Kirk (R.-Ill.), cochairs<br />

of the Congressional Caucus<br />

on <strong>Armenia</strong>n Issues recommended<br />

in a March 24 letter to colleagues.<br />

Rep. Nita Lowey. Photo: AP.<br />

The letter, currently open for additional<br />

co-signers, is addressed to<br />

Reps. Nita Lowey (D.-N.Y.) <strong>and</strong><br />

Kay Granger (R.-Tex.), respectively<br />

chair <strong>and</strong> ranking member of<br />

the House Foreign Appropriations<br />

Subcommittee which sets foreignaid<br />

levels at the early stages of the<br />

annual budget process.<br />

Specifically, the Pallone-Kirk letter<br />

argued for an increase in U.S.<br />

economic aid to <strong>Armenia</strong> from Fiscal<br />

Year 2009 level of $48mln to<br />

$70mln; military aid, from $3.5mln<br />

to $5mln; <strong>and</strong> aid to Nagorno-Karabakh<br />

from $8mln to $10mln.<br />

The letter also recommends report<br />

language that would lift any<br />

“official or unofficial restrictions” on<br />

formal U.S. engagement with Nagorno-Karabakh,<br />

as well as support<br />

for confidence-building measures to<br />

help resolve the Karabakh conflict.<br />

Additionally, citing Azerbaijan’s<br />

continued war threats, the letter<br />

recommends an additional condition<br />

on presidential authority to<br />

waive existing restrictions on U.S.<br />

aid to Azerbaijan.<br />

The new language would require<br />

the executive branch to certify that<br />

“in the last fiscal year, Azerbaijan<br />

has not taken hostile action, either<br />

through military force or incitement,<br />

including but not limited to<br />

threatening pronouncements by<br />

government officials, toward <strong>Armenia</strong><br />

or Nagorno-Karabakh.”<br />

Should that condition be met,<br />

the co-chairs suggest equal levels<br />

of military aid to <strong>Armenia</strong> <strong>and</strong><br />

Azerbaijan, or the so-called “parity”<br />

approach to continue.<br />

Last summer, the effort by Mr.<br />

Kirk’s predecessor as co-chair, former<br />

Rep. Joe Knollenberg (R.-<br />

Mich.) to zero out U.S. military aid<br />

to Azerbaijan outright failed narrowly<br />

in the subcommittee vote.<br />

<strong>Armenia</strong>n politician<br />

weighs in on Genocide<br />

resolution<br />

In a rare letter to a congressional<br />

colleague, a senior member of the<br />

<strong>Armenia</strong>n parliament wrote to express<br />

“complete support” for the<br />

House Resolution 252 affirming the<br />

U.S. record on the <strong>Armenia</strong>n Genocide,<br />

introduced earlier this month.<br />

Armen Rustamian, chair of the<br />

<strong>National</strong> Assembly’s Foreign Relations<br />

Committee <strong>and</strong> senior member<br />

of the <strong>Armenia</strong>n Revolutionary<br />

Federation (ARF)’s leadership, addressed<br />

the March 19 letter to his<br />

U.S. counterpart, Rep. Howard<br />

Berman (D.-Calif.), who chairs the<br />

House Foreign Affairs Committee,<br />

which should next consider the resolution.<br />

The letter was circulated by<br />

the ARF’s press service.<br />

Ahmet Davutoglu. Photo: <strong>Armenia</strong>n<br />

Reporter.<br />

While pursuing universal recognition<br />

<strong>and</strong> condemnation of the<br />

<strong>Armenia</strong>n Genocide is <strong>Armenia</strong>’s<br />

official policy, senior <strong>Armenia</strong>n<br />

officials have rarely spoken out on<br />

specific proposals before the U.S.<br />

Congress. On the other h<strong>and</strong>, Turkish<br />

leaders have frequently voiced<br />

their opposition to the resolution.<br />

Last week, a spokesperson for<br />

the House Speaker Nancy Pelosi<br />

(D.-Calif.) reiterated her support<br />

for genocide recognition but<br />

added that congressional action<br />

on resolution was not imminent.<br />

The spokesperson, Brendan Day,<br />

told Reuters on March 19 that “no<br />

one’s talking about a vote any time<br />

soon.”<br />

Senior Turkish official<br />

in Washington ahead of<br />

Obama’s visit<br />

Ahmet Davutoglu, senior foreign<br />

policy advisor to Turkish leaders,<br />

last week met with U.S. officials to<br />

discuss President Barack Obama’s<br />

visit to Ankara <strong>and</strong> Istanbul on<br />

April 5–7.<br />

After meeting Mr. Obama’s national<br />

security advisor Jim Jones<br />

on March 19, Mr. Davutoglu told<br />

Reuters that he could not say what<br />

the Obama administration’s intentions<br />

were with regard to the<br />

president’s pre-election pledge to<br />

recognize the <strong>Armenia</strong>n Genocide,<br />

adding only that the two officials<br />

“went through all these issues in a<br />

very friendly <strong>and</strong> cooperative manner.”<br />

Administration officials have so<br />

far refused to address the <strong>Armenia</strong>n<br />

Genocide issue directly.<br />

Mr. Davutoglu suggested that<br />

U.S.–Turkey relations were “in a<br />

historic era where our policies are<br />

almost identical on all issues,” Associated<br />

Press reported him as saying<br />

on March 19. He added that the<br />

<strong>Armenia</strong>n Genocide issue “could<br />

be debated from a historical perspective,<br />

but should not hijack the<br />

strategic vision of Turkish-American<br />

relations or Turkish-<strong>Armenia</strong>n<br />

relations.”<br />

With regard to <strong>Armenia</strong>-Turkey<br />

talks, Mr. Davutoglu said that<br />

“there is a process, <strong>and</strong> everyone<br />

should strengthen this process <strong>and</strong><br />

not try to weaken it,” the Washington<br />

Post cited him as saying. “We<br />

hope that the discussions on the<br />

<strong>Armenia</strong>n issue [in U.S.] do not<br />

affect this process in a negative<br />

sense.”<br />

During a visit to Washington<br />

shortly before the presidential<br />

elections, Mr. Davutoglu insisted<br />

that Turkey wants “to have best relations<br />

with <strong>Armenia</strong>,” <strong>and</strong> “good<br />

relations” with <strong>Armenia</strong>ns in the<br />

diaspora. (See this page in the<br />

November 1, 2008, <strong>Armenia</strong>n Reporter.)<br />

Obama offers goodwill<br />

message to Iran<br />

President Barack Obama stressed<br />

U.S. commitment to diplomacy <strong>and</strong><br />

dialogue with the Iranian government<br />

in a March 20 video message<br />

dedicated to Nowruz, the Iranian<br />

new year.<br />

“I want you, the people <strong>and</strong> leaders<br />

of Iran, to underst<strong>and</strong> the future<br />

that we seek,” Mr. Obama said<br />

in the message. “It’s a future with<br />

greater opportunities for partnership<br />

<strong>and</strong> commerce. It’s a future<br />

where the old divisions are overcome,<br />

where you <strong>and</strong> all of your<br />

neighbors <strong>and</strong> the wider world can<br />

live in greater security <strong>and</strong> greater<br />

peace.”<br />

Mr. Obama’s comments reflected<br />

a campaign pledge to reach out<br />

to Iran. But the message also referred<br />

to “terror” <strong>and</strong> “arms,” reflecting<br />

longst<strong>and</strong>ing U.S. charges<br />

that Iran supports terrorist groups<br />

<strong>and</strong> seeks to develop nuclear weapons.<br />

A spokesperson for Iranian president<br />

Mahmoud Ahmadinejad<br />

welcomed “the wish of the president<br />

of the United States to put<br />

away past differences.” But in an<br />

interview with Reuters, the spokesperson,<br />

Ali Akbar Javanfekr, put<br />

the blame for tensions on the U.S.<br />

“The only source of instability in<br />

the region is the American military<br />

presence in Iraq <strong>and</strong> Afghanistan,”<br />

he claimed.<br />

Ross Vartian offers testimony to House subcommittee<br />

Rep. Howard Berman chairing<br />

committee meeting. Photo: <strong>Armenia</strong>n<br />

Reporter.<br />

In what is seen as a step toward<br />

U.S.-Iranian dialogue, Iranian officials<br />

said this week they would attend<br />

a United Nations conference<br />

on Afghanistan to be held in The<br />

Hague on March 31. The conference<br />

was proposed by the United States<br />

earlier this month, as the Obama<br />

administration has made stabilization<br />

of Afghanistan its immediate<br />

foreign policy priority.<br />

European Union leaders<br />

agree on “Eastern”<br />

policy<br />

Member countries of the European<br />

Union have formally approved two<br />

policy initiatives involving their<br />

eastern neighbors.<br />

During a March 19–20 summit in<br />

Brussels, European leaders agreed<br />

to set aside 600 million euros for<br />

a multiyear program dubbed “Eastern<br />

Partnership,” which will involve<br />

Belarus, Ukraine, Moldova,<br />

Georgia, <strong>Armenia</strong>, <strong>and</strong> Azerbaijan,<br />

RFE/RL reported.<br />

The program is viewed as a<br />

counterweight to Russia’s increasingly<br />

dominant posture in the former<br />

Soviet space since the war in<br />

Georgia last year. While promising<br />

increased cooperation up to free<br />

trade agreements <strong>and</strong> visa-free<br />

travel, it makes no mention of potential<br />

European Union expansion<br />

into the area.<br />

In a related development, the<br />

European Union agreed to spend<br />

200 million euros to facilitate the<br />

Nabucco gas pipeline from the<br />

Caspian region to Europe, bypassing<br />

Russia. Europeans hope the<br />

new route will lessen their dependence<br />

on Russia as supplier of<br />

natural gas.<br />

f<br />

Dear Chairwoman Lowey <strong>and</strong><br />

Ranking Member Granger:<br />

On behalf of the U.S.-<strong>Armenia</strong><br />

Public Affairs Committee (USAPAC),<br />

Ross Vartian, Executive Director, is<br />

pleased to provide testimony to the<br />

Subcommittee for fiscal year 2010<br />

State, Foreign Operations <strong>and</strong> Related<br />

Programs Appropriations bill.<br />

USAPAC requests that not less<br />

than $70 million in bilateral aid be<br />

provided to the Republic of <strong>Armenia</strong><br />

under the Foreign Assistance<br />

Act of 1961 <strong>and</strong> the FREEDOM Support<br />

Act account, for assistance for<br />

the Independent States of the former<br />

Soviet Union <strong>and</strong> for related<br />

programs.<br />

USAPAC also recommends that<br />

the Subcommittee include language<br />

urging USAID to allocate not<br />

less than $10 million to Nagorno<br />

Karabakh with a substantial developmental<br />

component under the<br />

FREEDOM Support Act account,<br />

for assistance for the Independent<br />

States of the former Soviet Union<br />

<strong>and</strong> for related programs.<br />

Finally, we respectfully urge the<br />

Subcommittee to maintain military<br />

assistance to <strong>Armenia</strong>, providing<br />

$4 million in Foreign Military<br />

Financing funds <strong>and</strong> $1 million in<br />

<strong>International</strong> Military Education<br />

<strong>and</strong> Training funds, while zeroing<br />

out U.S. military aid to Azerbaijan.<br />

Recommendations for<br />

Fiscal Year (FY) 2008<br />

1. Assistance to <strong>Armenia</strong><br />

USAPAC urges the Subcommittee<br />

to allocate not less than $70 million<br />

in U.S. assistance to <strong>Armenia</strong> in FY<br />

2010.<br />

We are grateful to the Subcommittee<br />

for providing effective annual<br />

levels of humanitarian, reform<br />

<strong>and</strong> development assistance<br />

to <strong>Armenia</strong>. Since its independence<br />

in 1991, Congress has allocated<br />

some $2.0 billion with remarkable,<br />

bi-partisan consensus votes spanning<br />

four presidencies <strong>and</strong> ten U.S.<br />

congresses. This assistance reflects<br />

U.S. commitment to <strong>Armenia</strong>’s success<br />

as an independent, secure <strong>and</strong><br />

economically viable state, despite<br />

blockades by neighbors in violation<br />

of U.S. <strong>and</strong> international law.<br />

Despite the dual blockades by<br />

Azerbaijan <strong>and</strong> Turkey, <strong>Armenia</strong>’s<br />

economic reform progress has been<br />

remarkable.<br />

The Wall Street Journal <strong>and</strong> Heritage<br />

Foundation’s “2009 Index of<br />

Economic Freedom,” which measured<br />

how 179 countries scored on<br />

a list of 50 independent variables<br />

divided into ten broad factors of<br />

economic freedom, rated <strong>Armenia</strong><br />

31st. According to the study, <strong>Armenia</strong><br />

remains the most economically<br />

free nation in the region, including<br />

all nations in the Commonwealth<br />

of Independent States. As a result<br />

of these reforms, <strong>Armenia</strong>’s Gross<br />

Domestic Product (GDP) has in<br />

1998-2008 increased by a factor<br />

of 10. This remarkable expansion<br />

came after a decade of economic<br />

decline that followed the devastating<br />

earthquake of 1988.<br />

<strong>Armenia</strong>, of course, has not<br />

been immune to the global economic<br />

downturn. <strong>Armenia</strong>’s GDP<br />

contracted by 2% in January 2009<br />

<strong>and</strong> the national currency has been<br />

devalued by 20% against the U.S.<br />

dollar. These realities give U.S. economic<br />

support for <strong>Armenia</strong> added<br />

importance.<br />

In December 2005, <strong>Armenia</strong> was<br />

competitively awarded $236 million<br />

in conditional aid over a five year<br />

period through the performancebased<br />

Millennium Challenge Account.<br />

Unfortunately, the Bush<br />

Administration had justified its<br />

past requests for lower bilateral aid<br />

by counting the MCA grant against<br />

<strong>Armenia</strong>. <strong>Armenia</strong> has been able to<br />

effectively implement economic reforms,<br />

in part, because of U.S. assistance.<br />

It is counterintuitive at best<br />

to reduce such assistance because<br />

<strong>Armenia</strong> has won a MCC compact.<br />

These assistance programs serve<br />

fundamentally different purposes.<br />

US AID assistance has been used effectively<br />

in <strong>Armenia</strong> to secure <strong>and</strong><br />

sustain broad economic <strong>and</strong> democratic<br />

reform. <strong>Armenia</strong>’s MCC Compact<br />

is targeted toward rural roads<br />

<strong>and</strong> irrigation.<br />

2. Assistance to Nagorno Karabakh<br />

USAPAC commends the vision <strong>and</strong><br />

leadership of the Subcommittee for<br />

its continued support for humanitarian<br />

aid to the Nagorno Karabakh<br />

Republic (NKR). We request that the<br />

Subcommittee include language<br />

urging USAID to allocate not less<br />

than $10 million for Karabakh in FY<br />

2010, while specifically directing that<br />

Continued on page 18 m

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