Pallone Voices Support for Bill Blocking Funds from Use on Caucusus Railroad that Excludes Armenia

Washington, D.C. --- U.S. Rep. Frank Pallone, Jr. (D-NJ), co-chairman of the Congressional Caucus on Armenian Issues, made the following statement today on the floor of the House of Representatives regarding an amendment to S. 3938 The Export-Import Bank Reauthorization Act of 2006 - that prohibits funding from the U.S. Export-Import Bank from going toward the construction of a proposed new railroad in the South Caucasus region that purposely excludes Armenia. The amendment was approved and included in the final overall legislation.

"I just want to stress how important this provision is with regard to Armenia and that region. It has been the policy of this Congress for some time to encourage integration of the Caucuses nations: Armenia, Azerbaijan, Georgia, as well as Turkey. The idea of building a rail road that would cut off Armenia, which has been suggested by Azerbaijan and Turkey, would be contrary to the policy this Congress, both under Democrat and Republican leadership, has had for the last 20 years. We have tried to encourage integration, even a Customs Union eventually, between these nations. To cut off one of the countries in this significant way, by building a railroad around Armenia, is totally contrary to that policy.

"We should also understand that there is an existing railroad in this region that goes from Turkey through Armenia and then to Azerbaijan. There is no reason to build a new railroad. All you have to do is open the borders, which are now blockaded by Turkey and Azerbaijan, and allow this railroad to be upgraded somewhat at minimal cost. In the Kars region of Turkey, as well as the Gumri region of Armenia, the local leaders are in favor of opening the old railroad and ending the blockade. The local leaders have worked together to try to encourage trade. Unfortunately in Ankara, the Turkish government is opposed and they have done everything they can to stop it - including proposing this new railroad.

"This situation has happened before with the Caspian oil pipeline which was supposed to go through Armenia - the shortest route - but was bypassed. Now we have another situation where Armenia is being bypassed and isolated. This is a mistake. These countries must be brought together; I use the European Union as an example - the countries in Europe fought each other for generations, but now that they have formed a union; they work together as a unified whole.

"If this policy of isolating Armenia continues it will only lead to another war, which is not in the interest of the United States. We have to fight a global war against terrorism and we need all nations in the Caucasus working together. Ultimately, what I would like to see is a Customs Union similar to the European Union in these nations.

"I just want to thank everyone, for putting a stop to this policy of isolating Armenia. It is not good for Armenia, not good for the Caucasus nations, and ultimately not good for the United States. Let's continue the policy of cooperation in bringing these countries together for the common good. Thank you."