Senate and House subcomittees deliberate aid to Ukraine (07/06/97)

Senate and House subcomittees deliberate aid to Ukraine

Ukrainian National Information Service

WASHINGTON - The Foreign Operations Subcommittee of the Senate Appropriations Committee marked up its bill on June 18 for foreign affairs spending in Fiscal Year 1998. Prior to the markup, Sen. Mitch McConnell (R-Ky.), chairman of the Foreign Operations Subcommittee, held a press conference during which he highlighted many of the issues in the foreign assistance legislation. The total bill for FY 1998 amounts to $13.2 billion, a slight decrease from President Bill Clinton's request of $13.3 billion.

The total new independent states (NIS) account funding is $800 million, a reduction from the president's request of $900 million. Under Sen. McConnell's bill, three countries are to receive earmarks for FY 1998: Armenia - $95 million; Georgia - $100 million; and Ukraine - $225 million. According to Sen. McConnell, the reason for the large increase in the Georgian account is the country's success in economic and political reform.

The Ukrainian earmark contains language that underscores Congress' watchful eye on economic reform and the elimination of corruption in Ukraine. During the press conference, Sen. McConnell stated that 50 percent of the earmark is not to be released until the secretary of state certifies that economic reform has progressed in Ukraine, privatization has moved forward (particularly agricultural privatization), and the problem of corruption has been dealt with appropriately. Portions of the Ukrainian earmark, however, are "exempt" from the funds under hold and include programs for nuclear safety, law enforcement and democracy-building initiatives.

During the markup, members of the subcommittee fully endorsed Sen. McConnell's strategic position vis-a-vis the NIS, in particular Ukraine. Sen. Frank Lautenberg (D-N.J.) commented on the chairman's bill by stating: "It is important to acknowledge their [Ukraine's] reform progress."

The entire Appropriations Committee convened on June 24 to review the markup held one week earlier. Members of the Appropriations Committee fully supported the bill as proposed by Sen. McConnell, which will be voted on by the senators in the early weeks of July.

Following the Senate subcommittee's markup of the foreign aid bill, the Foreign Operations Subcommittee of the House Appropriations Committee began their deliberations on June 25. In a meeting that lasted nearly three hours, the members of the House subcommittee adopted similar language as proposed in the Senate foreign assistance bill.

However, one overwhelming difference remains - the total spending for NIS countries. While the Senate version suggests an $800 million balance for the NIS account, the House of Representatives adopted a dramatically lower figure - $625 million (the same level as FY 1997).

Unlike the Senate, the House of Representatives does not include earmarks for any countries in the foreign aid bill, except for Israel and Egypt, which is in accordance with the Camp David Accords. In the House version of the markup, funding for Ukraine is left to the discretion of the president and the administration, whose certification is necessary to release portions of the funds designated for that country. As in the Senate, the House of Representatives will vote on the proposed bill during the first weeks of July.

Coincidentally, on June 24, an op-ed appeared in the Mobile Press Register, the hometown newspaper of Rep. Sonny Callahan (R-Ala.), chairman of the Foreign Operations Subcommittee of the House Appropriations Committee. The op-ed, titled "U.S. aid needed to assist Ukraine business," was written by Askold S. Lozynskyj, president of the Ukrainian Congress Committee of America Inc. (UCCA).

Focusing on the importance of continuing U.S. foreign assistance to Ukraine, the op-ed provided readers with an insight regarding the crucial nature of U.S.-Ukraine bilateral relations. Issues such as corruption in Ukraine and the undermining of pro-reform forces in Ukraine by stripping U.S. foreign assistance were raised.

During public witness testimony on hearings for foreign assistance to the NIS, Rep. Callahan had challenged Mr. Lozynskyj to provide his constituents with information regarding the need to fund programs in Ukraine. In the op-ed, Mr. Lozynskyj assessed the current situation in Congress by stating: "While Ukraine must tackle its own corruption problem, the effectiveness of U.S. aid is within our [American] control. The decision is up to Congress." Unlike other articles that have appeared in major U.S. newspapers prior to relevant congressional action on Ukrainian affairs, this article highlighted the positive aspects of the pro-reform, democratic movement in Ukraine.

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