Congress passes foreign aid bill with $225 M earmark for Ukraine (11/30/97)

Congress passes foreign aid bill with $225 M earmark for Ukraine

by Michael Sawkiw Jr.
Ukrainian National Information Service

WASHINGTON - Nearly a month and a half into the government's new fiscal year (FY 1998), on Wednesday, November 12, the House of Representatives passed the U.S. government's foreign aid bill.

Following months of hearings, trips by congressional delegations to various parts of the world, on-again-off-again Senate-House conferences, and a tremendous effort on behalf of the Ukrainian American community to inform members of Congress of the importance of foreign aid, assistance to Ukraine passed by an overwhelming margin.

Over-all assistance to the new independent states (NIS), under which the Ukrainian account falls, totals $770 million. This was a substantial increase over last year's assistance level of $625 million. In particular, several countries received earmarks of assistance: $225 million for Ukraine, $92.5 million for Georgia and $87.5 million for Armenia. The two earmarks for Georgia and Armenia were part of a larger regional Caucasus fund amounting to $250 million. Established in consultation with Sen. Mitch McConnell (R-Ky.), chairman of the Senate Foreign Operations Subcommittee of the Appropriations Committee, and Rep. Sonny Callahan (R-Ala.), chairman of the House Appropriations Subcommittee, this new Caucasus fund was designed to achieve a peace settlement between Armenia and Azerbaijan.

Of the funds appropriated under the Freedom Support Act (FSA) for Ukraine, 50 percent of the earmarked funds ($112.5 million) are to be withheld from assistance programs until the secretary of state certifies that Ukraine has achieved significant economic progress and has resolved American investors' problems in Ukraine. Such a certification should be completed by April 30, 1998, at which time the remaining funds will be released. Programs for nuclear safety and democracy-building initiatives, specifically election related programs, are exempt from this certification.

Though this year's foreign assistance bill does not include subearmarks for specific programs, the report language of the foreign aid bill mentions the need to continue assistance for areas such as nuclear safety programs, democracy-building initiatives, and commercial and legal reform in Ukraine. The conference committee's report recognizes Ukraine's contributions toward eliminating corruption, expanding the privatization of state-owned enterprises, and the general economic and political reform process in the country. Ukraine received praise for its introduction of a new Ukrainian monetary unit, the ratification of a new Ukrainian Constitution, and the recently established NATO-Ukraine distinctive partnership agreement.

The importance of the elections in Ukraine also was acknowledged by the conference committee. In their report, the committee states: "With parliamentary elections scheduled in March 1998, the managers strongly support expanded political party training and election-related activities to encourage informed participation and an open, fair process. The conferees remain concerned that the current Rada has opposed many of President Kuchma's reform initiatives. The conferees note that the outcome of the elections could have a significant impact on future assistance programs, as well as private sector investment."

Inasmuch as the House of Representatives had passed the bill by a large majority, the Senate considered the issue of the FY 1998 foreign assistance bill on Thursday, November 13, and passed it overwhelmingly. The joint bill was immediately sent to President Bill Clinton for his signature.

Throughout the entire foreign aid budget process, the Ukrainian American community spent time and effort phoning, faxing and writing letters to members of Congress, in particular the members of the House and Senate Foreign Operations Subcommittees.

The newly formed Congressional Ukrainian Caucus also played a role. Its effort included a "Dear Colleague" letter circulated among the members of the House of Representatives to gain support for the earmark of assistance to Ukraine. The letter, which was sent to Chairman Callahan and subcommittee members, stated, "For the past two years, Congress has earmarked $225 million in aid to Ukraine to support the establishment of democracy and help Ukraine shore up its nuclear energy program. This year's earmark will be used for much of the same, but will also include assistance for establishing a permanent national law enforcement tradition through training and technical support, and other important legal and economic reforms." Twenty-nine members of the House of Representatives, many without many Ukrainian American constituents, signed the letter in support of continued foreign assistance to Ukraine.

| Home Page |