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ANCA: Senate Blocks Funding for Armenia Railroad Bypass

Armenian National Committee of America
1711 N Street, NW
Washington, DC 20036
Tel. (202) 775-1918
Fax. (202) 775-5648
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PRESS RELEASE

For Immediate Release
October 2, 2006
Contact: Elizabeth S. Chouldjian
Tel: (202) 775-1918

ANCA WELCOMES SENATE ADOPTION OF RESOLUTION
TO BLOCK U.S. SUBSIDY FOR ARMENIA RAILROAD BYPASS

WASHINGTON, DC – The Armenian National Committee of America (ANCA)
has welcomed the adoption by the U.S. Senate of legislation
protecting U.S. taxpayers from funding an unnecessary and costly
proposed railroad between Turkey and Georgia that would, if built,
circumvent Armenia.

The Senate, during its final day in session before the November 7th
mid-term elections, passed the measure by unanimous consent as part
of its reauthorization of the Export-Import Bank. On September
21st the Senate Banking Committee, during its consideration of the
Export-Import bill, had agreed to add the railway language, offered
initially as an amendment by Sen. Robert Menendez (D-NJ), to the
larger measure. The Menendez Amendment was ultimately accepted as
a "manager’s amendment" by Committee Chairman Richard Shelby (R-AL)
and Ranking Democrat Paul Sarbanes (D-MD) and unanimously approved
by the panel.

"Armenian Americans welcome the Senate’s strong stand against the
efforts of Turkey and Azerbaijan to institutionalize their
blockades of Armenia and Nagorno Karabagh," said ANCA Executive
Director Aram Hamparian. "We appreciate the leadership of Senators
Santorum and Menendez in introducing the Railway legislation – as
well as the vital support this measure received in the Banking
Committee from Senators Shelby and Sarbanes."

The language adopted by the Senate reads as follows:

SEC. 11. PROHIBITION ON ASSISTANCE TO DEVELOP OR PROMOTE CERTAIN
RAILWAY CONNECTIONS AND RAILWAY-RELATED CONNECTIONS.

Section 2(b) of the Export-Import Act of 1945 (12 U.S.C. 635(b)) is
amended by adding at the end the following new paragraph:

(13) Prohibition on Assistance To Develop or Promote Certain
Railway Connections and Railway-Related Connections.–The Bank
shall not guarantee, insure, or extend (or participate in the
extension of) credit in connection with the export of any good or
service relating to the development or promotion of any railway
connection or railway-related connection that does not traverse or
connect with Armenia and does traverse or connect Baku, Azerbaijan,
Tbilisi, Georgia, and Kars, Turkey.

The U.S. House, this July, adopted the railway language as part of
its version of the Export-Import Bank Reauthorization Bill,
following a successful effort within the Financial Services
Committee, spearheaded by Representatives Joseph Crowley (D-NY),
Brad Sherman (D-CA) and Ed Royce (R-CA), to amend this text to the
EXIM measure. Both versions are based on the South Caucasus
Integration and Open Railroads Act of 2006 (S. 2461 / H.R. 3361),
introduced in the Senate by Rick Santorum (R-PA) and in the House
by Rep. Joe Knollenberg (R-MI), the Co-Chairman of the Armenian
Caucus.

The 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 friends of Armenia to
preemptively block such attempts. In October of 2005, 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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