Congress tells Ukraine to shape up (05/25/97)

Congress tells Ukraine to shape up

by Michael Sawkiw Jr.
Ukrainian National Information Service

WASHINGTON - As President Leonid Kuchma was completing his official visit here, the U.S. Congress was sending the president and his government a direct message: speed up reform and reduce corruption, or risk a reduction in U.S. assistance next year.

Several weeks ago, on April 30, the House Committee on International Relations, began to prepare the final draft of the foreign assistance authorization bill for Fiscal Year 1998. The authorization bill is an enactment by the Committee on International Relations to provide recommendations upon which the House Committee on Appropriations can base their spending decisions, and includes amounts recommended for Ukraine.

Of particular note was an amendment offered by Rep. Alcee Hastings (D-Fla.) to reduce the amount of foreign assistance to Ukraine. The amendment provided that "not more than an amount equal to one-third of the amount appropriated for Ukraine for Fiscal Year 1997 [$225 million] may be provided to the Government of Ukraine for each of such Fiscal Years 1998 and 1999." Had the amendment passed, Ukraine would have received no more than $75 million per year for the next two years.

As word began to spread about the Hastings amendment, the Ukrainian National Information Service (UNIS), along with several other Ukrainian American organizations, quickly engaged the assistance of the Ukrainian American community to contact members of the Committee on International Relations. The community encouraged members of Congress to oppose the Hastings amendment by arguing that it would not serve the interests of U.S. foreign policy. Nonetheless, Rep. Hastings continued to offer the amendment, and only withdrew it near the end of the President Kuchma's visit, to halt the controversy that the amendment had already caused among members of the committee.

In his remarks, Rep. Hastings blasted Ukraine for its lack of economic reform initiatives, which he claims has led to a lack of foreign investment in Ukraine and to a high degree of governmental corruption. He emphasized that there must be a resolution of problems that several U.S. businesses have experienced in their operations in Ukraine. Rep. Hastings stated, however, that he had "high hopes for Ukraine" when it decided to unilaterally disarm itself of all nuclear weapons.

In response, Rep. Chris Smith (R-N.J.), co-chair of the Commission on Security and Cooperation in Europe (Helsinki Commission), stated that "Ukraine is one country that needs to be recognized [for its democratic, political and economic initiatives]." Rep. Smith thanked Rep. Hastings for withdrawing the amendment and added that Ukraine has shown tremendous progress in its reform efforts as is evidenced by its exemplary human rights record and issues dealing with the clean-up of the Chornobyl nuclear disaster.

Rep. Dana Rohrabacher (R-Calif.) also thanked Rep. Hastings for withdrawing his amendment. He acknowledged the strategic importance of Ukraine as an independent and sovereign state for increased peace and stability within Europe and Asia.

Within the authorization bill, the Foreign Policy Reform Act (HR 1486), the Committee on International Relations included language that "supports the continued assistance to Ukraine at the level of $225 million authorized in FY 1997 for each of FY 1998 and 1999 ... the Committee is encouraged by the direction of Ukraine's foreign policy and democratic reform."

A final vote on the Foreign Policy Reform Act is scheduled within the next several weeks. UNIS has advised all members of the Ukrainian American community to contact their congressmen to support the bill.

While Rep. Hastings was trying to reduce future funding for Ukraine, another congressional committee was also trying to reduce aid, but from already appropriated FY 1997 funds. Also during the final days of President Kuchma's visit, the House Subcommittee on Foreign Operations, chaired by Rep. Sonny Callahan (R-Ala.) attached an amendment about Ukraine to the Supplemental Appropriations Bill for FY 1997.

The Supplemental Appropriations Bill was requested by President Clinton to provide assistance to the flood victims in the water-logged areas of North and South Dakota. However, additional amendments, ones that did not have anything to do with the Dakota floods, (such as the one offered by the subcommittee), were also attached to the Supplemental Appropriations Bill. The Supplemental Appropriations Bill, along with its various amendments, was brought to a vote in the full House of Representatives, where it passed by a large majority.

According to a provision in the amendment, President Clinton may rescind unexpended FY 1997 appropriated funds for Ukraine and distribute them to other NIS nations, including Russia. Purportedly, the action by the House of Representatives was taken as a sanction against corruption in Ukraine. Language within the amendment stipulates: "The Parliament of Ukraine's failure to enact needed reform legislation and the recent resignation of reform leaders from the government mark a setback for reform since the 1997 Act was signed in September 1996."

A cognate version of the Supplemental Appropriations Bill was voted on in the Senate as well. However, the Senate version does not include an amendment to rescind earmarked funds for Ukraine. Members from the House and Senate Appropriations Committees are meeting to resolve differences between the two versions of the bill.

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