[WPRT 106-5]
[From the U.S. Government Publishing Office]


106th Congress                                                    WMCP:
 1st Session                COMMITTEE PRINT                       106-5
_______________________________________________________________________

                                     


                         SUBCOMMITTEE ON TRADE

                                 OF THE

                      COMMITTEE ON WAYS AND MEANS

                     U.S. HOUSE OF REPRESENTATIVES

                               __________

                            WRITTEN COMMENTS

                                 ON THE

    EXTENSION OF UNCONDITIONAL NORMAL TRADE RELATIONS TO THE KYRGYZ 
                                REPUBLIC


                                     
[GRAPHIC] [TIFF OMITTED] TONGRESS.#13

                                     
                            NOVEMBER 4, 1999

  Printed for the use of the Committee on Ways and Means by its staff



                      COMMITTEE ON WAYS AND MEANS

                      BILL ARCHER, Texas, Chairman

PHILIP M. CRANE, Illinois            CHARLES B. RANGEL, New York
BILL THOMAS, California              FORTNEY PETE STARK, California
E. CLAY SHAW, Jr., Florida           ROBERT T. MATSUI, California
NANCY L. JOHNSON, Connecticut        WILLIAM J. COYNE, Pennsylvania
AMO HOUGHTON, New York               SANDER M. LEVIN, Michigan
WALLY HERGER, California             BENJAMIN L. CARDIN, Maryland
JIM McCRERY, Louisiana               JIM McDERMOTT, Washington
DAVE CAMP, Michigan                  GERALD D. KLECZKA, Wisconsin
JIM RAMSTAD, Minnesota               JOHN LEWIS, Georgia
JIM NUSSLE, Iowa                     RICHARD E. NEAL, Massachusetts
SAM JOHNSON, Texas                   MICHAEL R. McNULTY, New York
JENNIFER DUNN, Washington            WILLIAM J. JEFFERSON, Louisiana
MAC COLLINS, Georgia                 JOHN S. TANNER, Tennessee
ROB PORTMAN, Ohio                    XAVIER BECERRA, California
PHILIP S. ENGLISH, Pennsylvania      KAREN L. THURMAN, Florida
WES WATKINS, Oklahoma                LLOYD DOGGETT, Texas
J.D. HAYWORTH, Arizona
JERRY WELLER, Illinois
KENNY HULSHOF, Missouri
SCOTT McINNIS, Colorado
RON LEWIS, Kentucky
MARK FOLEY, Florida

                     A.L. Singleton, Chief of Staff
                  Janice Mays, Minority Chief Counsel

                                 ______

                         Subcommittee on Trade

                  PHILIP M. CRANE, Illinois, Chairman

BILL THOMAS, California              SANDER M. LEVIN, Michigan
E. CLAY SHAW, Jr., Florida           CHARLES B. RANGEL, New York
AMO HOUGHTON, New York               RICHARD E. NEAL, Massachusetts
DAVE CAMP, Michigan                  MICHAEL R. McNULTY, New York
JIM RAMSTAD, Minnesota               WILLIAM J. JEFFERSON, Louisiana
JENNIFER DUNN, Washington            XAVIER BECERRA, California
WALLY HERGER, California
JIM NUSSLE, Iowa


Pursuant to clause 2(e)(4) of Rule XI of the Rules of the House, public 
hearing records of the Committee on Ways and Means are also published 
in electronic form. The printed record of written comments remains the 
official version. Because electronic submissions are used to prepare 
both printed and electronic versions of the hearing/written comments 
record, the process of converting between various electronic formats 
may introduce unintentional errors or omissions. Such occurrences are 
inherent in the current publication process and should diminish as the 
process is further refined.



                            C O N T E N T S

                               __________

                                                                   Page

Advisory of May 12, 1999, announcing request for written comments 
  on the extension of unconditional normal trade relations to the 
  Kyrgyz Republic................................................     1

                                 ______

Brownback, Hon. Sam, a U.S. Senator from the State of Kansas, 
  letter.........................................................     3
Central Asia-Caucasus Institute, Charles H. Fairbanks, Jr., 
  letter.........................................................     3
Chamber of Commerce of the United States of America, R. Bruce 
  Josten, letter.................................................     4
Douglas Hammonds Accountancy Corporation, Chatsworth, CA, Douglas 
  Hammonds, letter...............................................     5
Frenzel, Hon. Bill, Brookings Institution, statement.............     5
JBC International, James B. Clawson, letter......................     6
National Conference on Soviet Jewry, statement...................     6
North American-Kyrgyz Business Council, Falls Church, VA, Anne B. 
  Pendleton, letter..............................................     8
Smith, Hon. Christopher H., a Representative in Congress from the 
  State of New Jersey, statement.................................     8
Union of Councils for Soviet Jews, Yosef I. Abramowitz, and Micah 
  H. Naftalin, letter............................................     9
      

ADVISORY

FROM THE COMMITTEE ON WAYS AND MEANS

                         SUBCOMMITTEE ON TRADE

FOR IMMEDIATE RELEASE                            CONTACT: (202) 225-6649
May 12, 1999
No. TR-10

                      Crane Announces Request for
                  Written Comments on the Extension of
              Unconditional Normal Trade Relations to the
                            Kyrgyz Republic

    Congressman Philip M. Crane (R-IL), Chairman, Subcommittee on Trade 
of the Committee on Ways and Means, today announced that the 
Subcommittee is requesting written public comments for the record from 
all parties interested on the extension of unconditional normal trade 
relations (NTR) to the Kyrgyz Republic.
      

BACKGROUND:

      
    At present, the trade status of the Kyrgyz Republic is subject to 
the Jackson-Vanik amendment to Title IV of the Trade Act of 1974 (P.L. 
93-618), the provision of law governing the extension of NTR to 
nonmarket economy countries ineligible for such status as of the 
enactment of the Trade Act. A country subject to this provision may 
gain conditional NTR, including NTR tariff treatment, only by complying 
with the freedom-of-emigration criteria under the Trade Act and by 
concluding a bilateral commercial agreement with the United States 
providing for reciprocal nondiscriminatory treatment. The extension of 
NTR is also subject to Congressional approval. The Trade Act authorizes 
the President to waive the requirements for full compliance with 
respect to a particular country if he determines that such a waiver 
will substantially promote the freedom-of-emigration provisions and if 
he has received assurance that the emigration practices of the country 
will lead substantially to the achievement of those objectives.
      
    On April 13, 1992, the President determined that a waiver for the 
Kyrgyz Republic from the Jackson-Vanik freedom-of-emigration criteria 
would substantially promote the emigration objectives of the Trade Act. 
This determination was followed on April 16, 1992, by Executive Order 
12802, under which the President's waiver determination entered into 
force. NTR, then most-favored-nation (MFN) treatment, was first 
extended to the Kyrgyz Republic effective August 21, 1992, following 
the country's ratification of the provisions in the bilateral trade 
agreement concluded on May 18, 1992, between the United States and the 
Kyrgyz Republic. Previously, Congress had approved the United States-
Soviet Union agreement in a joint resolution signed into law on 
December 9, 1991 (P.L. 102-197). No further Congressional action was 
required to approve the extension of NTR to the Kyrgyz Republic because 
the agreement ratified by that country in 1992 reflected only technical 
changes in the previously approved original agreement with the Soviet 
Union.
      
    NTR with the Kyrgyz Republic continued in effect under Presidential 
waivers in subsequent years. On December 5, 1997, the President 
determined that the Kyrgyz Republic was in full compliance with the 
Jackson-Vanik freedom-of-emigration criteria.
      
    Pursuant to section 122 of the Uruguay Round Agreements Act (P.L. 
103-465) requiring Congressional consultation prior to country 
accessions to the World Trade Organization (WTO), the United States 
Trade Representative transmitted detailed materials to the Committee on 
Ways and Means on September 24, 1998, on the pending accession of the 
Kyrgyz Republic to the WTO. On November 20, 1998, the Kyrgyz Republic 
filed its instruments of ratification with the Director General of the 
WTO, and on December 20, 1998, it formally became a member of the WTO. 
Because the United States has not extended unconditional NTR status to 
the Kyrgyz Republic as a result of the application of the Jackson-Vanik 
amendment to that country, the United States has invoked the non-
application clause of the WTO (Article XXXV), meaning that the United 
States does not apply the WTO Agreements to the Kyrgyz Republic.
      
    On March 25, 1999, Rep. Jennifer Dunn (R-WA) introduced H.R. 1318, 
legislation authorizing the President to determine that the Jackson-
Vanik amendment should no longer apply to the Kyrgyz Republic. If the 
bill were to become law, the United States would be able to extend 
unconditional NTR to the Kyrgyz Republic, and all rights and 
obligations under the WTO agreed to by the two countries would apply.
      

DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:

      
    Any person or organization wishing to submit a written statement 
for the printed record should submit six (6) single-spaced copies of 
their statement, along with an IBM compatible 3.5-inch diskette in 
WordPerfect 5.1 format, with their name, address, and comments date 
noted on label, by the close of business, Friday, June 11, 1999, to 
A.L. Singleton, Chief of Staff, Committee on Ways and Means, U.S. House 
of Representatives, 1102 Longworth House Office Building, Washington, 
D.C. 20515.
      

FORMATTING REQUIREMENTS:

      
    Each statement presented for printing to the Committee by a 
witness, any written statement or exhibit submitted for the printed 
record or any written comments in response to a request for written 
comments must conform to the guidelines listed below. Any statement or 
exhibit not in compliance with these guidelines will not be printed, 
but will be maintained in the Committee files for review and use by the 
Committee.
      
    1. All statements and any accompanying exhibits for printing must 
be submitted on an IBM compatible 3.5-inch diskette in WordPerfect 5.1 
format, typed in single space and may not exceed a total of 10 pages 
including attachments. Witnesses are advised that the Committee will 
rely on electronic submissions for printing the official hearing 
record.
      
    2. Copies of whole documents submitted as exhibit material will not 
be accepted for printing. Instead, exhibit material should be 
referenced and quoted or paraphrased. All exhibit material not meeting 
these specifications will be maintained in the Committee files for 
review and use by the Committee.
      
    3. A witness appearing at a public hearing, or submitting a 
statement for the record of a public hearing, or submitting written 
comments in response to a published request for comments by the 
Committee, must include on his statement or submission a list of all 
clients, persons, or organizations on whose behalf the witness appears.
      
    4. A supplemental sheet must accompany each statement listing the 
name, company, address, telephone and fax numbers where the witness or 
the designated representative may be reached. This supplemental sheet 
will not be included in the printed record.
      
    The above restrictions and limitations apply only to material being 
submitted for printing. Statements and exhibits or supplementary 
material submitted solely for distribution to the Members, the press, 
and the public during the course of a public hearing may be submitted 
in other forms.
      

    Note: All Committee advisories and news releases are available on 
the World Wide Web at `HTTP://WWW.HOUSE.GOV/WAYS__MEANS/'.
      

                                


                                   United States Senate    
                                       Washington, DC 20510
                                                      June 11, 1999

The Honorable Philip M. Crane
Chairman, Subcommittee on Trade
Committee on Ways and Means
U.S. House of Representatives
1102 Longworth House Office Building
Washington, D.C. 20515

    Dear Representative Crane:

    In response to the request for comments from the Ways and Means 
Trade Subcommittee, I am pleased to submit this written statement and 
express my support of normal trade relations with Kyrgyzstan. As a 
member of the Senate Foreign Relations Committee I have followed the 
progress of Kyrgyzstan closely and I fully support H.R. 1318 which 
would remove Kyrgyzstan from the Jackson-Vanik amendment to Title IV of 
the 1974 Trade Act. Earlier this year I introduced S. 332 in the Senate 
to authorize the extension of nondiscriminatory treatment (normal trade 
relations treatment) to the products of Kyrgyzstan.
    Kyrgyzstan has been a leader in economic and political reform in 
Central Asia. Since its independence from the Soviet Union in 1991, 
Kyrgyzstan has made great strides towards democratic rule and towards 
creating a free-market economy system. Further, Kyrgyzstan has been 
found to be in full compliance with the freedom of emigration 
requirements under Title IV of the Trade Act of 1974. While their 
efforts at reform are not yet complete, their many successes ought to 
be acknowledged through normal trade relations treatment with the 
United States as an affirmative expression of support for the 
significant progress that has been made.
    Kyrgyzstan has demonstrated a strong desire to build a friendly and 
cooperative relationship with the United States and in 1994 concluded a 
bilateral investment treaty. Despite strong pressure from less 
reformist states, Kyrgyzstan gained accession to the World Trade 
Organization (``WTO'') in 1998. Becoming the first nation of the 
Commonwealth of Independent States to become a member of the WTO has 
made Kyrgyzstan a model for other countries in the region.
    The extension of unconditional normal trade relations treatment to 
the products of Kyrgyzstan will enable the United States to avail 
itself of all rights under the WTO with respect to Kyrgyzstan, assist 
Kyrgyzstan in its efforts to continue to advance political and economic 
reform, and provide strong incentive to their neighbors in Central Asia 
to follow the example of Kyrgyzstan's reform programs.

            Sincerely,
                                              Sam Brownback
                                              United States Senator
      

                                


                        Central Asia-Caucasus Institute    
                                       Washington, DC 20036
                                                       May 25, 1999

Congressman Philip M. Crane
Chairman, Subcommittee on Trade
Committee on Ways and Means
US House of Representatives
1102 Longworth House Office Building
Washington, DC 20515

    Dear Representative Crane:

    I would like to convey my strong support for a waiver for 
Kyrgyzstan as regards the Jackson-Vanik amendment to the Trade Act of 
1974. Granting Kyrgyzstan a waiver is fully in line with the growing 
relationship between our two countries. Kyrgyzstan is an oasis of 
openness in the increasingly authoritarian environment of Central Asia. 
Authoritarian tendencies, and understandable reactions to the 
disastrous economic situation, are found in Kyrgyzstan as well; I know 
from my own experience that the major opposing force is Kyrgyz 
awareness, even among former Communist officials, that the West values 
and rewards democracy.
    I have supported the Jackson-Vanik amendment since its inception, 
and I can assure you that exempting Kyrgyzstan from Jackson-Vanik will 
serve its original purposes. The situation of human rights and the 
right to emigrate in Kyrgyzstan is what it should be elsewhere in the 
former Soviet space.
    Kyrgyzstan has been operating with MFN status under a presidential 
waiver since August, 1992. In December 1998, Kyrgyz Republic became the 
first CIS country to be admitted a member of the World Trade 
Organization (WTO).
    At present, Kyrgyzstan continues the reform process from an economy 
dominated by more than 70 years of Soviet ways. The Kyrgyz know they 
must suffer through many changes in the old Soviet economy while going 
to a market economy with its freedoms and opportunities. The people are 
stoically attempting to do so. I cannot speak for the Institute or 
SAIS, but in my personal opinion, the granting of unconditional status 
would give the current Kyrgyz attempts a signal that we are concerned, 
and that we appreciate the many strides they have taken toward true 
freedom.

            Sincerely,
                                  Charles H. Fairbanks, Jr.
                          Director, Central Asia-Caucasus Institute

bcc: Ambassador Baktybek Abdrissaev, Kyrgyz Embassy
Nurbek Jeenbayev, Kyrgyz Embassy
      

                                


                             Chamber of Commerce of the    
                                   United States of America
                                                      June 11, 1999

The Honorable Philip M. Crane
Chairman, Subcommittee on Trade
Committee on Ways and Means
U.S. House of Representatives
1102 Longworth House Office Building
Washington, D.C. 20515

    Dear Mr. Chairman:

    As the world's largest business federation, representing more than 
three million businesses and organizations of every size, sector, and 
region, the U.S. Chamber of Commerce is writing to express our strong 
support for the extension of unconditional normal trade relations to 
the Kyrgyz Republic.
    Since its independence, the Kyrgyz Republic has been consistently 
working to become part of the global marketplace through a very liberal 
and transparent foreign trade policy. The World Bank accurately 
describes the Kyrgyz Republic as one the most rapidly reforming 
countries in the former Soviet Union (FSU). The Kyrgyz Republic has 
striven to eliminate central economic controls, restructure and 
privatize the economy, and attract investors.
    In July 1997, the U.S. Chamber of Commerce recognized the 
seriousness of purpose in the Kyrgyz government and business community 
when it signed the Cooperative Agreement with the Kyrgyz Chamber of 
Commerce and Industry. In 1998, the Kyrgyz Republic became the first 
former Soviet republic to join the World Trade Organization and make a 
firm commitment to international trade discipline. The Kyrgyz 
government persevered with its WTO bid despite strong pressure from 
several of its major regional trading partners who themselves lacked 
the requisite commitment and political will to liberalize foreign 
trade. At a recent meeting between our members and the President of the 
European Bank for Reconstruction and Development (EBRD), we welcomed 
the EBRD decision to select the Kyrgyz Republic as a ``pilot'' market 
for private sector development in the region.
    Based on our experience and analysis of the developments in the 
Kyrgyz Republic, we believe that it meets the statutory requirements 
for unconditional NTR treatment and that the extension of such 
treatment is in the economic interests of both the Kyrgyz Republic and 
the United States. American companies are keenly interested in the 
growth of the Eurasian market for U.S. goods and services. The 
application of all rights and obligations under the WTO to Kyrgyz goods 
and services will be crucial for sustaining the transformation of this 
small export-dependent economy and ensuring its balanced orientation in 
the global marketplace.
    The U.S. Chamber of Commerce looks forward to working with you and 
the Administration to ensure the extension of unconditional NTR 
treatment to Kyrgyz goods and services.

            Sincerely,
                                            R. Bruce Josten
                       Executive Vice President, Government Affairs
      

                                


                   Douglas Hammonds Accountancy Corporation
                                       Chatsworth, CA 91311
                                                       June 7, 1999

A.L. Singleton, Chief of Staff
Committee on Ways and Means
U.S. House of Representatives
1102 Longworth House Office Building
Washington D.C. 20515

    Dear Mr. Singleton:

    Over the past few years through the honorary consul in the western 
United States, Mr. S. ``Chic'' Wolk, I have become aware of the Kyrgyz 
Republic. I believe these people to be hard working, self reliant and 
well on the way to be a democracy with whom the United States could 
have a long and mutually beneficial relationship. It is countries like 
the Kyrgyz Republic which the United States should be promoting and 
encouraging. I would like to see H.R. 1318 passed which authorizes that 
the Jackson-Vanik amendment should no longer apply to the Kyrgyz 
Republic. Thank you for your consideration.

            Respectfully submitted,
                                           Douglas Hammonds
                                        Certified Public Accountant

Enclosures: 3.5 Disk
      

                                


Statement of Hon. Bill Frenzel, Brookings Institution

    I have never set foot in the Kyrgyz Republic, but I am 
familiar with the governments and the economies of the NIS in 
Central Asia.
    In December of 1997 President Clinton determined that the 
Kyrgyz Republic was in full compliance with the Jackson-Vanik 
freedom of emigration requirements. A year later the Kyrgyz 
Republic became a member of the World Trade Organization (WTO). 
The U.S. has been obliged to invoke Article XXXV, the non-
application clause of the WTO to the Kyrgyz Republic.
    Without Normal Trade Relations (NTR), the U.S. is in the 
embarrassing position of not being able to extend to the Kyrgyz 
Republic the rights which both countries agreed to under the 
WTO.
    HR 1318 would solve the problem. It ought to be promptly 
passed, and enacted.
    The U.S. does not engage in a lot of trade with the Kyrgyz 
Republic. It is a small, remote country which is may never be a 
major trading partner. But, it has qualified for WTO 
membership, and it has, in the opinion of the President, met 
the qualifications for NTR under Jackson-Vanik.
    Enactment of HR 1318 is not a prize, or a give-a-way. It 
has been earned, and it is a matter of simple justice. Passing 
it on a preference Calendar ought to be a matter of simple 
routine.
    I am delighted that the Committee plans action on the bill, 
and I congratulate the author, Ms. Dunn, the Chairman of the 
Subcommittee, Mr. Crane, and the Chairman of the Committee, Mr. 
Archer.
      

                                


                                      JBC International    
                                       Washington, DC 20006
                                                       June 4, 1999

A.L. Singleton, Chief of Staff
Committee on Ways and Means,
U.S. House of Representatives
1102 Longworth House Office Building
Washington, DC 20515

    Dear Mr. Singleton,

    Pursuant to the request of Congressman Phillip M. Crane, Chairman 
on the Subcommittee on Trade of the Committee on Ways and Means, JBC 
International submits comments in support of the extension of 
unconditional normal trade relations (NTR) to the Kyrgyz Republic.
    JBC International is a trade-consulting and lobbying firm that 
provides government relations services to businesses worldwide. We 
extend representation and advocacy services to businesses and 
governments throughout the world. JBC International builds industry and 
government coalitions to leverage trade negotiations. Most importantly, 
we promote the removal of trade barriers and the opening of foreign 
markets.
    Extending normal trade relations to the Kyrgyz Republic could only 
be beneficial for the US. Kyrgyz imports approximately $106 million 
annually in oil, gas, pharmaceuticals, and grain resources for 
agricultural production. The Kyrgyz Republic has several investment 
opportunities in transportation, tourism, manufacturing, food, and 
retailing. Currently, US businesses are involved in developing 
industries to more effectively harvest the energy deposits throughout 
the Kyrgyz Republic.
    The Kyrgyz Republic borders with several former members of the 
Soviet Union as well as China. Extending normal trade relations to 
Kyrgyzstan would increase US trade stability and indirectly improve 
opportunities for trade to neighboring countries. It is also the first 
step in establishing diplomatic relations in the region. Therefore, US 
business relations are not the only benefit of extending normal trade 
relations with the Kyrgyz Republic.
    We thank you for the opportunity to express our comments in support 
of the extension of normal trade relations to the Kyrgyz Republic. 
Extending NTR is one more important step to becoming a global free 
market economy.

            Yours Truly,
                                           James B. Clawson
                                                   Chairman and CEO
      

                                


Statement of National Conference on Soviet Jewry

                              INTRODUCTION

    The National Conference on Soviet Jewry (``NCSJ'') 
appreciates the opportunity to share its written comments on 
the extension of Normal Trade Relations (``NTR'') to the Kyrgyz 
Republic. NCSJ is confident of the commitment by the U.S. 
Congress and, in particular, Members of the Ways and Means 
Subcommittee on Trade, to the protection of minority rights 
that has been the hallmark of the Jackson-Vanik Amendment 
during the past 25 years.
    NCSJ has supported, within the legal framework of the 
Jackson-Vanik Amendment, Presidential decisions to extend Most-
Favored-Nation (``MFN'') status to certain former Soviet 
Republics through the exercise of waivers and determinations of 
compliance. It is not the position of NCSJ that the terms of 
Jackson-Vanik should apply in perpetuity to the former 
republics of the Soviet Union. Rather, an ongoing process 
within these newly independent countries of developing the 
legal structure for guaranteeing basic human rights for their 
Jewish citizens--and thereby for other citizens as well--should 
lead to eventual graduation. NCSJ is currently assessing 
whether the Kyrgyz Republic should be thus graduated, by an act 
of Congress, from the Jackson-Vanik framework.

                           TERMS OF REFERENCE

    Although the Jackson-Vanik Amendment to Title IV of the 
Trade Act of 1974 (P.L. 93-618) focused originally on free 
emigration, its application over the years has come to 
encompass the observance of internationally recognized human 
rights including--but not limited to--the right of emigration. 
We believe Congress recognizes that Jackson-Vanik has become an 
instrument of U.S. policy for assessing certain countries' 
observance of basic human rights. Therefore, the issue before 
the Committee is not whether it should approve unconditional 
NTR (i.e., MFN) because a country seeks membership in the World 
Trade Organization (``WTO''). Rather, the question before the 
Committee should be whether the country seeking graduation has 
provided the necessary assurances, and developed the political 
and legal guarantees, that warrant its graduation and, thereby, 
full acceptance into the international community.
    Recognition by former Soviet republics of these basic human 
rights, which are fundamental to the existence of Jewish 
communities, is the baseline for determining whether NCSJ can 
support the extension of unconditional NTR with the Kyrgyz 
Republic. This framework applies also for any other former 
Soviet republic seeking such status.
    Consideration of graduating the Kyrgyz Republic from the 
terms of Jackson-Vanik can be a constructive process beyond the 
immediate consequences for U.S.-Kyrgyz bilateral trade 
relations. While the enactment of legislation to graduate the 
Kyrgyz Republic should be based upon specific criteria, the 
mechanism for arriving at this determination for the Kyrgyz 
Republic should neither be more stringent nor less rigorous 
than the standard to be applied to other former republics of 
the Soviet Union.
    The proposed Congressional legislation, introduced as H.R. 
1318, refers to Kyrgyz accession to the WTO. NCSJ believes that 
any legislation to graduate the Kyrgyz Republic from Jackson-
Vanik should acknowledge assurances from the Kyrgyz government 
with respect to freedom of emigration and other issues which 
NCSJ looks forward to reviewing with the Ways and Means 
Committee.
    The Congressional oversight envisioned by Jackson-Vanik for 
the past quarter-century would be undermined if support for 
graduation were based primarily upon support for the accession 
of the Kyrgyz Republic to the WTO. Rather, graduation of the 
Kyrgyz Republic--and for that matter any of the former Soviet 
republics--should be based upon specific emigration policies as 
reflected in a country's legal framework and actual 
implementation, and other national policies that affect the 
status of their minority communities including the Jewish 
community. This has been and continues to be the foundation of 
the Jackson-Vanik Amendment to which--with rare exception--
virtually every Member of Congress has subscribed, reflecting 
the longstanding bipartisan support for its purposes and 
objectives. Therefore, graduation must be conditioned upon 
Congressional consideration of the following principles:
     Emigration, minority rights, and freedom of 
religion;
     Prospects for the incorporation of human rights 
standards (including freedom of emigration and religion) into 
the country's constitutional and legal structure, into the laws 
of the republic, and their protection by the judiciary;
     Participation in bilateral and multilateral 
mechanisms related to the observance of religious freedom and 
basic human rights.

       HUMAN RIGHTS AND RELIGIOUS CONCERNS IN THE KYRGYZ REPUBLIC

    Despite periodic difficulties, the Kyrgyz Jewish community 
is relatively well treated and maintains a good working 
relationship with the government. NCSJ views the Kyrgyz 
Republic as having been in compliance with the freedom of 
emigration requirements of Jackson-Vanik. However, NCSJ remains 
concerned about the possible consequences of discrimination 
against non-Kyrgyz ethnic groups and restraints on religious 
freedom.
    A proposed new religion law has already passed its first 
reading in the Kyrgyz legislature. This proposed statute 
contains vague terminology and refers to unspecified criminal 
and administrative penalties. The vagueness of the law 
potentially makes subject to governmental registration and 
approval a broad range of religious activity that simply, in a 
free society, should not be subject to the prior governmental 
review and/or approval.
    NCSJ recommends strongly that the Ways and Means Committee 
revise and expand the scope of the proposed legislation so that 
it clearly expresses the continued long-term commitment of the 
United States to free emigration, minority rights, and freedom 
of religion. In this regard, NCSJ will be contacting both 
Members of the Committee and the Committee staff to present its 
detailed views on these issues.
      

                                


                 North American-Kyrgyz Business Council    
                                     Falls Church, VA 22042
                                                        24 May 1999

The Honorable Philip M. Crane
Chairman, Subcommittee on Trade
Committee on Ways and Means
U.S. House of Representatives
1102 Longworth House Office Building
Washington, D.C. 20515

    Dear Representative Crane:

    The North American-Kyrgyz Business Council strongly recommends 
providing a waiver to the Kyrgyz Republic under the Jackson-Vanik 
amendment to the Trade Act of 1974. Kyrgyzstan has been operating with 
MFN status under a Presidential waiver since August of 1992. In October 
of 1998 the Republic became a member of The World Trade Organization.
    The Kyrgyz Republic has made great strides toward democracy and 
needs aid and encouragement to continue on this road. Waiving the 
Jackson-Vanik amendment for Kyrgyzstan would give the country an 
additional sense of progress as they seek to move forward toward 
economic independence and freedom. The Kyrgyz are now going through the 
multiple changes required to move from a totalitarian to a free and 
free-market way of life.
    The granting of unconditional status would give the Kyrgyz a sign 
of our support, concern and appreciation of their progress to date.

            Most sincerely,
                                          Anne B. Pendleton
                                                 Executive Director
      

                                


Statement of Hon. Christopher H. Smith, a Representative in Congress 
from the State of New Jersey; Chairman, Subcommittee on International 
Operations and Human Rights; and Chairman, Commission on Security and 
Cooperation in Europe

    Mr. Chairman, thank you for this opportunity to address the 
subcommittee on the issue of extending unconditional normal 
trade relations (NTR) to the Kyrghyz Republic. I urge that this 
step not be taken at this time.
    Mr. Chairman, I understand that the Kyrghyz Republic has 
made significant steps in the area of human rights, and that, 
as the State Department reported in its latest Country Reports 
on Human Right Practices, ``In general, government policy 
allows free travel within and outside the country.''
    However, we note that the same Country Report stated ``the 
government generally respected the human rights of its citizens 
in many aspects but serious problems remained. Therefore, we 
wish to call your attention to several other areas of human 
rights practice and democratic institutions that we believe 
need to be considered before extending NTR unconditionally.
    For instance, the Country Report reports that a referendum 
held in 1996 to substantially strengthen the Presidency was 
``marred by serious irregularities,'' and, ``although 
Parliament has become increasingly active, it still does not 
check the power of the President effectively. The judiciary is 
dominated by the executive branch.''
    Another difficulty with the judiciary branch is that 
criminal proceedings are under the control of the procurator, 
i.e., the prosecuting attorney, instead of an impartial judge. 
The Country Report notes, ``Thus the courts are widely 
perceived as a rubber stamp for the procurator and for high-
ranking government officials and not as the protectors of 
citizens rights. In addition, very low judges' salaries have 
led to a well-grounded view among lawyers and citizens that all 
but a very few scrupulously honest judges are open to bribes.''
    In the area of free speech and press, there are laws on the 
books that theoretically protect these rights, but the 
government at times infringes on these rights. One of the 
greatest problems is the amount of taxation to which the 
independent print media is subject. There are at least six 
forms of taxes, in some cases amounting to over 50% of revenue. 
As John Marshall wrote so correctly, ``the power to tax is the 
power to destroy.'' High taxes reduce the viability of the 
independent press and force it to subsidize the government 
press that receives state subsidies.
    Although criminal libel statutes have been removed from the 
books, several journalists have been charged under civil law 
for injuring the ``honor and dignity'' of parliamentarians and 
other public figures.
    Finally, regarding religious liberty issues, the Kyrghyz 
Republic has a less than an exemplary record. Although better 
than some of its counterparts in Central Asia, Kyrgyzstan 
requires all religious groups to register with government 
authorities. Likewise, as recently as May 1999 in the city of 
Kyzyl Kiya, ten people were detained and fined a month's salary 
by authorities for holding religious gatherings. Reports such 
as these raise serious concerns about the Kyrghyz commitment to 
religious freedom.
    Mr. Chairman, in light of these human rights concerns, 
unconditional NTR status is not warranted at this time.

            Sincerely,
                                 Christopher H. Smith, M.C.
      

                                


                      Union of Councils for Soviet Jews    
                                       Washington, DC 20006
                                                      June 11, 1999

Mr. A. L. Singleton
Chief-of-Staff
Committee on Ways and Means
1102 Longworth House Office Bldg.
Washington, DC 20515

    Dear Mr. Singleton:

    As an organization that has worked on human rights issues in the 
former Soviet Union (FSU), with a specialty in freedom of movement, for 
nearly 30 years, the Union of Councils for Soviet Jews (UCSJ) has been 
a strong supporter of the Jackson-Vanik Amendment since the 
legislation's inception. In our view, the Jackson-Vanik Amendment is 
one of the most important statements of the United States' commitment 
to human rights and is fundamentally responsible for the great strides 
taken to protect emigration rights across the FSU.
    In recent years, UCSJ has recognized these improvements and has not 
objected to the annual waiver of the Jackson-Vanik Amendment. Through 
the waiver process, most favored nation (MFN) status has been granted 
to the countries of the FSU making them equal with other U.S. trading 
partners. UCSJ has maintained that the waiver process serves as a 
continued reminder to these countries that they must make protection of 
human rights a top priority.
    In the case of Kyrgyzstan, UCSJ and its Bishkek-based Kyrgyz-
American Bureau on Human Rights and Rule of Law have supported the 
annual waiver of the Jackson-Vanik Amendment despite the continued 
existence of human rights violations. Our policy remains to support MFN 
for Kyrgyzstan.
    We are writing here to raise several serious concerns with the 
proposed legislation H.R.1318's provisions that permanently remove 
Kyrgyzstan from the Jackson-Vanik regime and grant permanent and 
unconditional ``normal trade relations treatment'' (NTR) as MFN is 
known today.
    While there are no significant direct obstacles to emigration in 
Kyrgyzstan, UCSJ and its Kyrgyz-American Bureau strongly oppose the 
continued existence of exit visas in that country. The requirement to 
renew this visa annually places an improper burden of time and money on 
applicants, as well as a constant dependence on the authorities to 
exercise this fundamental human right. The United States should insist 
that Kyrgyzstan end the practice of requiring exit visas.
    A second reason for concern is the current decline in overall 
protection of human rights in Kyrgyzstan. The Kyrgyz-American Bureau, 
an organization that monitors human rights across the country, reports 
that instead of undertaking policies aimed at creating dialog between 
Kyrgyzstan's civil society and government the authorities are turning 
towards authoritarian methods to control its increasingly discontented 
and impoverished population. Simply put, progress in human rights and 
democracy has ceased and Kyrgyzstan is now regressing in these areas.
    Five important areas of human rights deficiency identified by the 
Kyrgyz-American Bureau are freedom of religion, NGO regulation, freedom 
of assembly, freedom of the mass media and persecution of opposition 
political figures.
    The Kyrgyzstan Parliament recently adopted, at first reading, a new 
draft law on religion that limits the rights of unregistered religious 
groups. Unregistered groups would be banned from missionary activity or 
even from preaching in private homes. The U.S. State Department reports 
that some Christian congregations face special barriers in the 
registration process including so-called non-traditional confessions 
(eg. Baptists and other evangelical Christians, Jehova's Witnesses, and 
Catholics). Some Muslim groups would be restricted as well.
    One significant example of conflict between the authorities and a 
religious body is the deep hostility of the State Commission for 
Religious Affairs towards a parish owing allegiance to the Russian 
Orthodox Church Abroad (ROCA). On October 23, 1998, the church 
belonging to the ROCA was forcibly removed from the control of local 
parish priest Father Vladimir Klippenshtein and presented to 
representatives of the local branch of the Moscow Patriarchate, an 
action fully supported by the State Commission for Religious Affairs.
    The parliament similarly adopted a draft law on NGOs that would 
require all NGOs to report to the Ministry of Justice every three 
months and to reregister with the authorities after final passage of 
the law. This law threatens to place all NGOs in a position where they 
would not be able to participate in any public activities--most 
importantly in monitoring of the upcoming municipal, parliamentary and 
presidential elections--because of their lack of legal status. 
Additionally, the law fails to address tax questions, which are vital 
to the survival of local NGOs, and leave these critical institutions 
vulnerable to official harassment over taxation issues.
    The recent withdrawal of registration of the Kyrgyz Committee for 
Human Rights (KCHR) by the Kyrgyz Ministry of Justice demonstrates that 
the previous benevolent attitude towards human rights monitors is no 
longer the policy of the government of Kyrgyzstan. According to Amnesty 
International, the KCHR had its registration revoked in September 1998, 
just before a referendum which expanded the powers of President Akaev 
vis a vis the Parliament was scheduled to take place. Human rights 
advocates in Kyrgyzstan are concerned that the revocation of 
registration was motivated by the government's desire to prevent the 
KCHR from monitoring voting on the referendum.
    Also passed at first reading is a draft law on freedom of assembly 
that sharply limits the right to demonstrate (e.g. near government 
buildings). Among the current violations of freedom of assembly was the 
arrest in September 1998 of three peaceful protesters in Jalal-Abad who 
were sentenced to 15 days of administrative detention. With the 
economic situation quickly deteriorating and nation-wide elections 
forthcoming, vulnerable and dispossessed groups in Kyrgyzstan are 
expected to become more active in peaceful protests and elections 
rallies. The draft law would allow the police to suppress this 
legitimate political activity.
    According to the International Helsinki Federation, the draft laws 
on ``Non-governmental Organizations'' and on ``Organizing and Holding 
Meetings, Rallies, Street Movements, and Demonstrations'' are 
restrictive and would violate Paragraphs 10.1-10.4 and 9.2-9.3 of the 
Copenhagen Document of the OSCE if they are adopted.
    It is important to note that, while at this time all of the above 
pieces of draft legislation are on hold, they remain as possible 
legislative weapons of the authorities and so are threats to 
Kyrgyzstan's future as a democratic, human rights defending nation.
    Additionally, freedom of the mass media has been limited because of 
actions of the National Agency of Communication (NAC) that has created 
technical obstacles to the functioning of the electronic mass media. 
Throughout 1998 the difficult process of obtaining license agreements 
was undertaken between the NAC and the non-state electronic media. The 
NAC has produced subtle censorship by making the licensing process 
extremely costly, thereby restricting access to the airwaves. 
Furthermore, the NAC insist on their exclusive right to make all final 
decisions regarding non-state electronic media with no right of review 
or appeal.
    The print media in Kyrgyzstan has also suffered repression in 
recent years. The newspaper Vecherny Bishkek was warned twice (in March 
and April 1998) by the Bishkek City Prosecutor for publishing 
unverified information.
    In recent years libel has been a weapon of government officials 
against the media. To this day, libel is still a criminal, not a civil, 
charge. At the end of 1997, the parliament rejected a bill submitted by 
the president to change libel into a civil charge. Several journalists 
were sued for libel by MPs and other government officials. For example, 
the U.S. Department of State reports that Yrysbek Omursakov, a 
journalist for Res Publica, who had been sentenced in 1996 for libeling 
President Akayev, was sentenced for libel again in May 1997, after 
writing a series of articles on privatization. He was released on bail 
in June 1997, but the charges remained in force. He was sentenced in 
September 1997 to 6 months in a prison colony; he appealed the verdict 
but was found guilty in November 1997. He was then released under a 
presidential amnesty. The Supreme Court found him guilty on January 20, 
according to the Civil Code, not the Criminal Code and sentenced him to 
pay a fine equal to 100 times the minimum monthly salary (about $600), 
but the provision of amnesty exempted him from having to pay. Omursakov 
returned to work at Res Publica during the year.
    ``Unlike the previous year (1997), the Government did not use libel 
laws against the press (in 1998); however, the Government on occasion 
apparently used tax laws and registration requirements to intimidate 
the opposition press or to suspend newspapers,''reported the State 
Department's country report on human rights in Kyrgyzstan for 1998. For 
example, in August 1998, the newspaper Asaba was evicted with only one 
month's notice from the building that it had occupied for 32 years. The 
Ministry of the Interior now occupies Asaba's old space. A new space 
has been found, but Asaba continues to have tax problems that have not 
been resolved.
    Finally, political opposition figures have been persecuted in 
Kyrgyzstan. Kubanchibek Apas, a political opposition figure who had 
been living in Russia to avoid harassment by the Kyrgyz government, was 
arrested upon arriving in Kyrgyzstan to visit his family in January 
1998. He was detained under outstanding charges of libel and insulting 
the president, but was soon released under the terms of the 1997 
amnesty.
    A second disturbing case was that of Topchubek Turgunaliev, a 
political opposition figure who was named a Prisoner of Conscience by 
Amnesty International, who was sentenced to 10 years in prison in 
January 1997 for abuse of authority and ``defaming the President of the 
Kyrgyz Republic.'' He was release on probation in 1998, but under the 
conditions of his probation, he is not allowed to run for office in the 
1999 parliamentary elections and may be prohibited from running in the 
2000 presidential elections as well.

                               Conclusion

    UCSJ's conclusion that Kyrgyzstan has regressed in the 
human rights field is echoed by the Human Rights Watch World 
Report for 1998 that concludes: ``In 1998, under the leadership 
of President Askar Akaev, Kyrgyzstan moved ever further from 
its popular image as a model new democracy and leader in rights 
reform. Police abuse, religious persecution, trafficking of 
women, and violations of the right to free expression made a 
mockery of Kyrgyzstan's international reputation.''
    The International Helsinki Federation for Human Rights 
(IHF) also noted serious concerns, during a visit to Kyrgyzstan 
in April 1999, over the decline in human rights including the 
freedom of association and protection of the rights of human 
rights defenders. And Freedom House rated Kyrgyzstan as only 
partly free in 1998, lower than Russia, Ukraine and Turkey, 
countries with widespread human rights problems.
    The above discussion demonstrates that many human rights 
problems remain in Kyrgyzstan, and that unfortunately the 
authorities are reversing earlier progress in this area. The 
United States government should insist in its negotiations with 
the government of Kyrgyzstan that these problems be addressed 
prior to obtaining further trade concessions.
    Thus UCSJ recommends that the Committee on Ways and Means 
reject H.R. 1318 at this time, while continuing to support 
granting Kyrgyzstan NTR through the annual waiver process. This 
result will offer Kyrgyzstan all of the economic benefits of 
NTR, but will not provide them with the public relations 
victory of graduation from the Jackson-Vanik regime at a time 
when the country's human rights record is worsening.
    Thank you for your consideration of UCSJ's view on this important 
legislation.

            Sincerely,
                                   Yosef I. Abramowitz
                                           President
                                   Micah H. Naftalin
                                           National Director

                                  
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