1997: THE YEAR IN REVIEW

U.S.-Ukraine: agenda dominated by corruption

Topics on the U.S.-Ukraine agenda in 1997 ranged from NATO expansion to joint space flight. Relations between the two countries were dominated, however, by allegations of government corruption at the highest level, including Prime Minister Pavlo Lazarenko. Congress responded swiftly and brutally - it threatened to cut off U.S. aid to Ukraine and devoted much of the year to holding hearings to that effect. President Leonid Kuchma traveled to the United States several times to reassure Congress and the U.S. government that fighting corruption and resolving American investor disputes were his top priority. In July the Senate voted to earmark $225 million in aid to Ukraine, with the caveat that half of the aid would be "held" until the secretary of state determined that economic reform, the resolution of investor disputes and the campaign to combat corruption were moving forward.

On January 8 Madeleine Albright, then U.S. permanent representative to the United Nations, made a successful appearance before the Senate Foreign Relations Committee to explain her vision of U.S. foreign policy as President Clinton's second-term nominee for secretary of state. A proponent of NATO expansion, Ambassador Albright proposed increasing funding for foreign affairs and noted that assistance to countries of the former Soviet Union is in the United States' national security interest. She acknowledged the special relationship between the United States and Ukraine, and proposed continued U.S. support to the country. She was confirmed as the first woman secretary of state in U.S. history on January 22.

The Senate also confirmed Republican Sen. William Cohen of Maine as secretary of defense on January 22. Also a proponent of NATO expansion, Mr. Cohen told a Senate confirmation hearing that he would like to expand the military alliance over the next several years to include countries of the former Warsaw Pact, but not without first consulting with Russia.

On January 30 the State Department released its annual human rights report for 1996 in which it praised Ukraine "for significant progress toward building a law-based civil society." The report lauded Ukraine's adoption of a Constitution but pointed to several shortcomings in the "unreformed legal and prison systems." It also noted that in 1996 there were government attempts to control the media in Ukraine; there were limits on the freedom of association and the work of non-native religious organizations; and there was evidence of "significant societal anti-Semitism," discrimination and violence against women, and incidents of discrimination against ethnic and religious minorities. The State Department report is compiled on the 194 countries that either receive U.S. foreign assistance or are member-countries of the United Nations.

Applications for the 1998 Diversity Visa Lottery, which made 55,000 permanent resident visas available to people from countries with low rates of immigration to the United States, were accepted on February 3-March 5. In September close to 100,000 applicants out of 4.7 million entries were registered and notified to apply for immigrant visas. The federal government moved up its application process for the 1999 Diversity Visa Lottery by four months, and accepted applications for permanent resident visas on October 24-November 24.

On February 6 President Bill Clinton presented his budget for Fiscal Year 1998, in which he requested $19.45 billion in international affairs spending - an increase of $800 million from 1997 levels. The president's request included the following programs that directly or indirectly benefit Ukraine: $900 million for assistance to the new independent states (40 percent over the FY 1997 request of $640 million); $70 million for the Partnership for Peace program; $1.1 billion for United States Information Agency (USIA) programs; and $50 million for the International Military Education and Training program. The president's direct request for Ukraine, which falls under his general request for the NIS, was $225.5 million - an increase of only $500,000 over the 1997 level. The request for Russia was $241.5 million, a 150 percent increase from the FY 1997 level of $95.4 million.

On March 7 Ukraine's Foreign Affairs Minister Hennadii Udovenko met with newly confirmed Secretary of State Albright in Washington. Talks centered on NATO expansion and a proposed NATO-Ukraine charter delineating Ukraine's relationship with the military alliance as it expands into Eastern Europe. Secretary Albright underscored U.S. commitment to elevate relations with Ukraine to a level of "strategic partnership" several times during their 90-minute meeting.

On March 11 the International Relations Committee of the House of Representatives heard testimony on the president's request for $900 million in aid to the NIS.

On March 12 Sen. Alfonse D'Amato, chairman of the Commission on Security and Cooperation in Europe (Helsinki Commission), and Rep. Christopher Smith, co-chair, sent a letter to President Clinton on the eve of his March 20-21 summit with Russian President Boris Yeltsin. The letter requested that, in discussing the proposed NATO-Russia charter, it be made clear to Russia that Russia will not be given a veto, or an implied veto, over the timing of admission of new Eastern European members; that the charter will firmly oppose any moves by Moscow to create "spheres of influence" in Central and Eastern Europe; and that the NATO-Russia charter will in no way impede the development of enhanced relations between NATO and non-members. The legislators also urged the president to underscore "unwavering U.S. support for Ukraine's sovereignty and territorial integrity within internationally recognized borders."

On March 13 the Immigration and Naturalization Service granted 12-year-old Vova Malofienko and his parents, Olga and Alexander, a last-minute extension on their visas to the United States on humanitarian grounds. Vova, a victim of the 1986 Chornobyl nuclear power plant explosion, has been treated for leukemia in the U.S. since 1990. His leukemia is in remission, and despite his father's efforts to obtain a permit to work in the United States, the INS insisted that the family return to Ukraine on April 10. New Jersey Sen. Frank Lautenberg and Vova's classmates and teachers at the Millburn Middle School in New Jersey lobbied on his behalf. The Malofienkos are permitted to remain in the United States for one more year. In December Sen. Lautenberg and New Jersey Reps. Steven Rothman (D) and Bob Franks (R) introduced a special resolution in the House of Representatives and the Senate to admit Vova and his parents for permanent residence in the United States.

On April 9 the Subcommittee on Foreign Operations of the House Appropriations Committee heard government testimony on U.S. assistance to the NIS for FY 1998. Chairman Sonny Callahan (R-Ala.) voiced his reservations on funding assistance programs to Ukraine, referring to an April 8 New York Times article on government corruption titled "Ukraine Staggers on Path to Free Market." Ambassador Richard L. Morningstar, special advisor to the president and secretary of state on assistance to the NIS, testified on the successes in the NIS and in Ukraine specifically, and outlined the Partnership for Freedom (PFF) program, a new presidential initiative that refocuses the U.S. approach to assistance to the NIS. The PFF will target investment and capital mobilization, and expanded law enforcement and criminal justice reform.

On April 16 the Ukrainian "Blakytna Stezha" (Azure Observer Squad) landed at Dulles International Airport near Washington to begin openly "spying" on the United States. The Ukrainian military observation aircraft is the first plane of the former Warsaw Pact to fly over the U.S., as permitted by the Open Skies Treaty signed in 1992. "Blakytna Stezha" flew over 13 American states in the Midwest and South, photographing sites in Ohio, Oklahoma, Georgia and Florida.

On April 24 the Subcommittee on Foreign Operations of the House Appropriations Committee heard testimony from congressional and public witnesses on U.S. assistance to the NIS for FY 1998. Testimony centered on corruption in Ukraine. Joseph Lemire, president of Gala Radio in Ukraine, and Marta Fedoriw, partner of the Grand Hotel in Lviv, detailed their difficulties in trying to conduct business in Ukraine. Ms. Fedoriw proposed that "a part of U.S. assistance should be allocated to a mechanism which will address and resolve immediately the more than 20 American investor problems in Ukraine." During the hearing Chairman Callahan stated: "Until Ukraine gets its act straight, Ukraine will receive zero money from my committee ... unless they make some serious, drastic changes."

On April 28 Ukraine's minister of defense, Col. Gen. Oleksander Kuzmuk, arrived in Washington for a four-day visit - his first to the United States. Minister Kuzmuk toured U.S. Army, Navy, Air Force and Marine Corps bases in the southeastern United States; met with Secretary of Defense Cohen at the Pentagon, officials at the National Security Council and the State Department, and members of Congress; and visited the National Defense College for discussion with military strategists and historians. During their meeting Minister Kuzmuk and Secretary Cohen signed three bilateral agreements: the Amendment to the Strategic Nuclear Arms Elimination Agreement, which gives Ukraine an additional $47 million to destroy its remaining strategic delivery vehicles and silos; the Reciprocal Health Care Agreement, which gives Ukrainian military personnel and their dependents access to U.S. military medical facilities and U.S. military personnel reciprocal rights in Ukraine; and the Statement of Intent for Future Military Medical Cooperation.

On April 30 the Central and East European Coalition (CEEC) held a conference titled "Security and Stability in Central and Eastern Europe: A Vital U.S. Interest" in Washington. The conference addressed NATO expansion, U.S. assistance to the NIS for FY 1998 and the efficacy of United States Agency for International Development (USAID) programs in the region. The CEEC comprises 19 ethnic grassroots organizations, including the Ukrainian National Association and the Ukrainian Congress Committee of America, representing more than 22 million Americans who trace their heritage to Central and Eastern Europe.

On May 6-7 two separate Senate subcommittees heard testimony on U.S. assistance to the NIS for FY 1998. Witnesses testified that U.S. aid should be linked to Ukraine's effort to combat corruption and resolve business disputes with American investors. Ambassador Morningstar told the Foreign Operations Subcommittee of the Senate Appropriations Committee on May 6 that cutting aid to Ukraine as "pure punishment" was not in the U.S. interest. Thomas Dine, assistant administrator of the U.S. Agency for International Development for Europe and the NIS, told the Subcommittee on European Affairs of the Senate Foreign Relations Committee on May 7 that "Ukraine faces excruciating problems, including political stalemate, budget problems, failed investments, among other problems, but we must work with our friends."

On May 14 the American Friends for Ukraine (AFU), a cultural and educational non-profit foundation incorporated in April, launched its activities with a reception at Washington's chic Carlton Hotel. The goal of AFU is to introduce Ukraine into America's consciousness through education, exchanges and cultural exhibitions. In December AFU sponsored the U.S. tour of the Kyiv Chamber Choir.

On May 16 President Kuchma and Vice-President Al Gore presided over the first full session of the U.S.-Ukraine Binational Commission at the White House. The daylong session culminated in the signing of a joint initiative on gas sector reform and a far-reaching joint statement on the work of the commission in the areas of foreign policy, security, trade and investment, and sustainable economic growth.

The Ukrainian president and his delegation of senior Cabinet ministers had arrived in the nation's capital for a two-day working visit on May 14. On May 15 President Kuchma devoted a large block of time to reassuring lawmakers on Capitol Hill that he was focused on combating corruption in Ukraine and determined to settle disputes with American investors.

In a meeting with Rep. Callahan, the chairman of the Foreign Operations Subcommittee warned President Kuchma that "if American businesses continue to suffer, Congress will find it difficult to justify further strong support to Ukraine." The Ukrainian president asked for American tolerance as Ukraine struggles to achieve a free market and cited progress in resolving several high-profile investment disputes. President Kuchma also met with Sens. Mitch McConnell (R-Ky.), William Roth (R-Del.), chairman of the Senate's NATO Observer Group and president of the North Atlantic Assembly, and Arlen Specter (R-Pa.); Speaker of the House Newt Gingrich; and Rep. Benjamin Gilman (R-N.Y.), chairman of the House Committee on International Relations,

In addition to his meetings on Capitol Hill, President Kuchma met with President Clinton, Michel Cam-dessus, managing director of the International Monetary Fund; James Wolfensohn, president of the World Bank; philanthropist George Soros; and heads of large American corporations.

On May 15 President Kuchma recognized the achievements of American friends to Ukraine by presenting former Secretary of Defense William Perry and Zbigniew Brzezinski, chairman of the American-Ukrainian Advisory Committee, with the State Award of Ukraine. In turn, he was presented the 1997 IFES Democracy Award by the International Foundations for Election Systems at a banquet at the State Department.

On June 23, five weeks after co-chairing the inaugural session of the U.S.-Ukraine Binational Commission, President Kuchma returned to the United States to meet with Vice-President Gore at the U.N. General Assembly's special session on the environment and development. President Kuchma addressed the session, called Earth Summit + 5, on June 24. Vice-President Gore requested the 45-minute meeting in New York to discuss progress made in Ukraine's business climate and anti-corruption measures since the May 16 commission meeting. Mr. Gore told Mr. Kuchma that U.S. lawmakers had noted visible progress in Ukraine's investment climate since the Ukrainian president's visit to Washington. During his June 22-24 visit to New York, President Kuchma toured "The Glory of Byzantium" exhibit at The Metropolitan Museum of Art; met with Henry Kissinger, President Richard Nixon's secretary of state, and heads of commercial and investment banks; and was hosted at a dinner at the Harvard Club by representatives of Ukrainian American community organizations.

On June 26 the creation of the Congressional Ukrainian Caucus was announced at a reception marking the first anniversary of the adoption of the Ukrainian Constitution held at Ukraine's Embassy to the United States. The purpose of the caucus is to organize an association of members of Congress who share the common goal of building stronger bilateral relations between Ukraine and the United States. The Congressional Ukrainian Caucus was initiated by Rep. Sander Levin (D-Mich.) and co-sponsored by Jon Fox (R-Pa.), Louise Slaughter (D-N.Y.) and Bob Schaffer (R-Colo.).

Rep. Fox, a member of the House International Relations Committee, offered an amendment to the State Department Authorization Bill in June that called for sustained assistance to Ukraine for FY 1998 and FY 1999 at levels equal to what was allocated for FY 1997. The amendment also indicated the mood of Congress regarding problems associated with foreign investment in Ukraine and requested that U.S. government agencies support the implementation of anti-corruption measures there. Four hundred and fifteen representatives voted to pass the amendment, including Rep. Callahan.

In a letter to Secretary of State Albright dated July 10, the Central and East European Coalition protested the nomination of Stephen Sestanovich, vice-chairman of the Carnegie Endowment for International Peace, as ambassador at large to the NIS because of his stand against NATO expansion. The letter also noted the CEEC's concern "about his views that the United States should not oppose Russian efforts to turn the area of the former Soviet Union into its own exclusive sphere of influence by 'non-violent' means." On July 15 Dr. Sestanovich appeared before the Senate Foreign Relations Committee to explain his views on U.S. foreign policy in the former Soviet Union. On October 10 he was sworn in as ambassador at large for the NIS.

On July 11, two days after President Kuchma signed the NATO-Ukraine Charter in Madrid, Secretary of Defense Cohen traveled to Yavoriv, Ukraine, to address the closing ceremonies of the Cooperative Neighbor '97 peacekeeping exercise held within the framework of the NATO Partnership for Peace program. Secretary Cohen met Defense Minister Kuzmuk and American soldiers in the field, and toured the 181st Tank Regiment. In Kyiv the secretary of defense met with President Kuchma and Volodymyr Horbulin, secretary of the National Security and Defense Council, to reaffirm the United States' strong relationship with Ukraine; visited the Tomb of the Unknown Soldier, and addressed an audience of 500 at the Armed Forces Academy.

On July 17 the Senate passed President Clinton's foreign aid bill that included $800 million to the NIS. The Senate's version of the bill retains a $225 million earmark for Ukraine in FY 1998, and includes subearmarks for programs focusing on Chornobyl-related safety assistance, commercial law and legal reform, democratic initiatives, and law enforcement procedures. The bill also states that half of the earmarked funds will be "held" until the secretary of state certifies that economic progress is continuing in Ukraine, corruption is being dealt with appropriately and American investor disputes are resolved.

On August 4 the office of Vice-President Gore held a briefing at the Old Executive Office Building for Ukrainian community representatives. Leon Fuerth, Vice-President Gore's national security advisor, and Ambassador Morningstar reassured representatives of the Ukrainian Congress Committee of America, the Ukrainian American Coordinating Council, the Ukrainian National Women's League of America, Americans for Human Rights in Ukraine, the U.S.-Ukraine Foundation and The Washington Group that while the U.S. has every intention of maintaining close relations with Ukraine, it is not always clear whether Ukraine is capable of putting through the needed reforms, particularly in the areas of the nation's economy, energy and agriculture.

On August 14-15 Sen. Mitch McConnell visited Crimea and Kyiv to access Ukraine's progress in domestic economic reform. Sen. McConnell met with a vacationing President Kuchma in Sevastopol and newly confirmed Prime Minister Valerii Pustovoitenko in Kyiv. He also participated in a signing ceremony of two grant agreements between the Ukrainian Ministry of the Coal Industry and the U.S. Trade and Development Agency.

On August 24 the sixth anniversary of Ukraine's independence was celebrated throughout Ukraine and communities in the West. In Ukraine President Kuchma received a telegram of congratulations from President Clinton. In Washington Ukraine's Ambassador to the U.S. Yuri Shcherbak participated in a ceremony at the Taras Shevchenko Monument and hosted a reception at the Ukrainian Embassy. On September 17 a congressional Ukrainian Independence Day reception was held at the Rayburn House Office Building. An estimated 150 members of Congress and their staff, diplomats, military officers and Ukrainian Americans attended the event sponsored by the Congressional Ukrainian Caucus, the Ukrainian Congress Committee of America and the Ukrainian American Coordinating Council.

On September 17 U.S. Ambassador to Ukraine William Green Miller announced the start of open competition for 10 U.S. government, academic exchange programs at a press conference held in Kyiv. The programs, including the Freedom Support Act Future Leaders Exchange, sends hundreds of Ukrainian administrators, teachers and students to the U.S. to develop relations and contacts on a grassroots level.

On October 2 President Clinton announced his nomination of Steven Karl Pifer as U.S. ambassador to Ukraine. Mr. Pifer, a career Senior Foreign Service officer, in August completed an assignment as special assistant to the president and senior director on the National Security Council staff for Russia, Ukraine and Eurasian affairs. On October 29 Mr. Pifer testified before the Senate Foreign Relations Committee at a confirmation hearing that "Ukraine's development as an independent, democratic, market-oriented and prosperous state is of critical importance to the United States. Such a Ukraine will be a key partner as we tackle today's international challenges, expand trade and investment, and shape a more stable and secure Europe." He was confirmed ambassador to Ukraine on November 6.

On October 14 the Commercial Service of the United States Embassy in Ukraine celebrated its fifth anniversary at a reception held at the American Business Center in Kyiv. The Commercial Service, which is part of the U.S. Department of Commerce, coordinates and promotes U.S. business activity in Ukraine.

On October 21-22 members of the U.S.-Ukraine Binational Commission met in Kyiv to discuss macroeconomic targets for the Ukrainian economy, and deregulation of the energy and agricultural industries in Ukraine. Meetings were led by Ambassador Morningstar and Ukraine's Minister for Economic Reform Serhii Tyhypko.

On November 12 the House of Representatives passed President Clinton's foreign aid bill with a $225 million earmark for Ukraine.

On November 19 Col. Leonid Kadenyuk became the first Ukrainian cosmonaut to fly on a U.S. spacecraft. The 46-year-old Col. Kadenyuk, who traveled aboard the Columbia space shuttle for 15 days as a payload specialist and conducted a series of science experiments called the Collaborative Ukrainian Experiments, is also the first Ukrainian to fly into space since Ukraine declared its independence in 1991.

Copyright © The Ukrainian Weekly, December 28, 1997, No. 52, Vol. LXV

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