[WPRT 106-7]
[From the U.S. Government Publishing Office]


106th Congress                                                    WMCP:
 1st Session                COMMITTEE PRINT                       106-7
_______________________________________________________________________

                                     


                         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 ALBANIA, ARMENIA, 
                            GEORGIA, AND MOLDOVA





                                     
[GRAPHIC] [TIFF OMITTED] CONGRESS.#13

                                     
                           DECEMBER 22, 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 October 4, 1999, announcing request for written 
  comments on the extension of unconditional normal trade 
  relations to Albania, Armenia, Georgia, and Moldova............     1

                                 ______

Armenian Assembly of America, Ross Vartian, letter...............     3
Atlantic Council of the United States, Hon. Roger Kirk, letter...     5
Distilled Spirits Council of the United States, Mark Z. Orr, 
  letter.........................................................     6
Engel, Hon. Eliot L., a Representative in Congress from the State 
  of New York; Hon. Steny H. Hoyer, a Representative in Congress 
  from the State of Maryland; Hon. Sue W. Kelly, a Representative 
  in Congress from the State of New York; Hon. Jerrold Nadler, a 
  Representative in Congress from the State of New York; Hon. 
  James P. Moran, a Representative in Congress from the State of 
  Virginia; Hon. Tim Roemer, a Representative in Congress from 
  the State of Indiana; Hon. Marcy Kaptur, a Representative in 
  Congress from the State of Ohio; Hon. Judy Biggert, a 
  Representative in Congress from the State of Illinois; Hon. 
  Vito Fossella, a Representative in Congress from the State of 
  New York; Hon. Donald M. Payne, a Representative in Congress 
  from the State of New Jersey; Hon. Joseph Crowley, a 
  Representative in Congress from the State of New York; Hon. 
  John W. Olver, a Representative in Congress from the State of 
  Massachusetts; Hon. Peter T. King, a Representative in Congress 
  from the State of New York; Hon. Christopher H. Smith, a 
  Representative in Congress from the State of New Jersey; Hon. 
  Nita M. Lowey, a Representative in Congress from the State of 
  New York; Hon. James P. McGovern, a Representative in Congress 
  from the State of Massachusetts; Hon. David E. Bonior, a 
  Representative in Congress from the State of Michigan; and Hon. 
  James H. Maloney, a Representative in Congress from the State 
  of Connecticut, joint letter...................................     7
JBC International, James Clawson, letter.........................     8
National Albanian American Council, Ilir Zherka, statement.......     8
National Conference on Soviet Jewry, statement...................     9
Union of Councils for Soviet Jews, Micah H. Naftalin, and Gideon 
  Aronoff, letter and attachment.................................    11
U.S.-Albanian Foundation, Jim Xhema, letter......................    14
      

ADVISORY

FROM THE 
COMMITTEE
 ON WAYS 
AND 
MEANS

                         SUBCOMMITTEE ON TRADE

                                                CONTACT: (202) 225-1721
FOR IMMEDIATE RELEASE

October 4, 1999

No. TR-16

                      Crane Announces Request for

                  Written Comments on the Extension of

                Unconditional Normal Trade Relations to

                 Albania, Armenia, Georgia, and Moldova

    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 in the extension of unconditional normal trade 
relations (NTR) to Albania, Armenia, Georgia, and Moldova.
      

BACKGROUND:

      
    At present, the trade status of Albania, Armenia, Georgia, and 
Moldova 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 of the emigration criteria 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 May 14, 1992, a bilateral trade agreement was signed with 
Albania, and on May 20th the President determined that a Jackson-Vanik 
waiver for Albania would substantially promote achievement of the 
emigration objectives in the statute. The waiver entered into force on 
June 3, 1992, under Executive Order 12908. A joint resolution approving 
of extension of conditional NTR, then known as most-favored-nation 
treatment, to Albania was enacted on August 26, 1992 (P.L. 102-363). 
NTR was first extended to Albania on November 2, 1992, following the 
exchange of written notices between the United States and Albania on 
the acceptance of the bilateral trade agreement. NTR continued under 
annual extensions of the Jackson-Vanik waiver until December 5, 1997, 
when Albania was found to be in full compliance with the statutory 
emigration criteria. Albania's compliance with these criteria removes 
the need for continued waivers, although the country remains subject to 
the terms of the Jackson-Vanik amendment.
      
    On June 1, 1990, the United States concluded a bilateral trade 
agreement with the Soviet Union, which was approved by Congress in a 
joint resolution signed into law on December 9, 1991 (P.L. 102-197). In 
Proclamation 6352 of October 9, 1991, the President proclaimed that 
this agreement had entered into force and nondiscriminatory treatment 
would be extended to the products of the Soviet Union. Subsequently, 
the Soviet Union was succeeded by 12 independent states including 
Armenia, Georgia, and Moldova.
      
    On April 6, 1992, the President issued Executive Order 12798 
waiving the Jackson-Vanik criteria with respect to Armenia. NTR was 
first extended to Armenia effective April 7, 1992, following an 
exchange of diplomatic notes on that day applying the provisions of the 
bilateral agreement with the Soviet Union in a new bilateral trade 
agreement with Armenia. This was followed by a Presidential 
determination on April 13, 1992, that Armenia's waiver would 
substantially promote the emigration objectives of the Trade Act.
      
    On May 6, 1992, the President determined that Jackson-Vanik waivers 
for Georgia and Moldova would substantially promote achievement of the 
freedom-of-emigration criteria in the statute. This determination was 
followed on June 3, 1992, by Executive Order 12908, under which each 
country's Jackson-Vanik waiver entered into force. NTR was extended to 
Moldova effective July 2, 1992, following an exchange of diplomatic 
notes applying the provisions of the United States-Soviet Union 
agreement to Moldova in a new bilateral agreement. NTR was extended to 
Georgia effective August 13, 1993, after a similar exchange of 
diplomatic notes.
      
    NTR with Armenia, Georgia, and Moldova continued in effect under 
annual Presidential waivers in subsequent years. On June 3, 1997, the 
President determined that Armenia, Georgia, and Moldova were in full 
compliance with the Jackson-Vanik freedom-of-emigration criteria. This 
determination removed the need for future waivers to continue NTR, 
although each country's trade status remains subject to the terms of 
the Jackson-Vanik amendment.
      
    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 (USTR) transmitted detailed materials to the 
Committee on Ways and Means on September 7, 1999, on the pending 
accession of Georgia to the WTO. On September 30, 1999, USTR issued a 
press release announcing the conclusion of bilateral negotiations on 
the terms of Albania's accession to the WTO. The Administration has 
advised the Committee that Armenia and Moldova may also accede to the 
WTO in the near future. Because the United States has not extended 
unconditional NTR to these countries as a result of the application of 
the Jackson-Vanik amendment, the United States would have to invoke the 
non-application clause of the WTO (Article XXXV) at the time of their 
accessions, meaning that the United States would not apply the WTO 
Agreements to Albania, Armenia, Georgia, and Moldova.
      
    On August 5, 1999, Rep. Eliot Engel (D-NY) introduced H.R. 2746, 
legislation authorizing the President to determine that the Jackson-
Vanik amendment should no longer apply to Albania. If the bill were to 
become law, the United States would be able to extend unconditional NTR 
to Albania, and all rights and obligations under the WTO agreed to by 
the two countries would apply upon its accession. No legislation has 
been introduced yet on the trade status of Armenia, Georgia, or 
Moldova.
      

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, October 15, 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/'.
      

                                


                           Armenian Assembly of America    
                                       Washington, DC 20001
                                                   October 15, 1999

Congressman Philip M. Crane
Chairman, Subcommittee on Trade of the Committee on Ways and Means
1104 Longworth House Office Building
Washington, DC 20515

    Dear Mr. Chairman:

    The Armenian Assembly of America strongly supports the extension of 
unconditional normal trade relations to Armenia. Armenia's strategic 
location at the crossroads of Europe and Asia, democratic stability, 
entrepreneurial spirit and western value system make Armenia an 
increasingly important partner for the United States in the Caucasus 
region. Armenia is poised to play a pivotal role as a commercial hub 
and has established a positive legal, regulatory and tax climate for 
foreign investment, reflecting the country's commitment to open and 
free trade.
    Since its independence from the Soviet Union in 1991, Armenia has 
not wavered from its commitment to the most important shared values 
with the United States: a commitment to democracy and a free market 
economy. In fact, Armenia's young democracy continues to make great 
strides in furthering its free market economy. U.S. Ambassador to 
Armenia Michael Lemmon has taken note of Armenia's economic policy, 
noting that ``the reform policies undertaken have opened the door to 
new international assistance and investment. They are helping to create 
the necessary environment in which productive domestic as well as 
foreign investment can flourish.''
    Armenia views the United States as a strategic partner and friend. 
Armenia has demonstrated a strong desire to build a friendly and 
cooperative relationship with the United States and has concluded many 
bilateral treaties and agreements with the United States, including:
    1. Bilateral Investment Treaty signed by the Government of the 
Republic of Armenia and the United States of America.
    2. Agreement Between the Government of the Republic of Armenia and 
the Government of the United States of America Regarding Cooperation to 
Facilitate the Provision of Humanitarian and Technical Economic 
Assistance.
    3. Agreement between the Government of the Republic of Armenia and 
the Government of the United States of America on Encouragement of 
Investment.
    4. Agreement between the Republic of Armenia and the United States 
of America on Trade Relations.
    5. Basic Agreement Between the Government of the Republic of 
Armenia, Central Bank of the Republic of Armenia and the United States 
Import/Export Bank on Assistance Programs.
    6. Science Agreement of the Government of the Republic of Armenia 
and the Government of the United States of America on Science and 
Technology Cooperation.
    In addition to concluding these treaties, high-level officials from 
Armenia and the United States continue to visit each others country to 
further the growing, mutually beneficial relationship. This year alone, 
several high-level visits have taken place. In April, Armenia's 
President Robert Kocharian traveled to Washington to participate in the 
50th year celebration of the North Atlantic Treaty Organization (NATO). 
During President Kocharian's visit, he had high-level meetings with 
Members of Congress and the Administration, including a meeting with 
U.S. Secretary of State Madeleine Albright. In August, Congresswoman 
Connie Morella led a Congressional delegation to Armenia. The 
delegation held extensive meetings at the highest levels and included 
meetings with the President, Prime Minister, Speaker of Parliament, 
Foreign Minister, Minister of Finance, Minister of Economy, and the 
U.S. Ambassador to Armenia. In September, a senior Armenian delegation 
led by the Prime Minister of Armenia Vazgen Sargisian traveled to 
Washington to participate in the 1999 World Bank Annual Meeting. His 
visit also included high-level meetings with Members of Congress and 
the Administration, including a meeting with Vice President Al Gore.
    The Armenian government's firm fiscal budget reduction policies 
have made it a model of effective transition from a command economy to 
a free enterprise system. The overwhelming majority of state 
enterprises have been privatized or are in the privatization process. 
Last year, Armenia secured western investors to take over and modernize 
its state-operated Cognac factory and its marquee hotel.
    To further promote and facilitate direct foreign investment, 
Armenia's Ministry of Trade and Industry created the Investment and 
Export Policy Directorate. This newly created department conducted an 
in-depth study on ways to improve the foreign investment climate in 
Armenia. As a consequence of this study and related consultations, the 
Armenian government unveiled plans to further promote foreign 
investment via the creation of the Armenian Development Agency (ADA). 
The primary purpose of the ADA is to provide ``one stop shopping'' 
services for potential investors.
    As a result of Armenia's economic reforms and financial incentives, 
a number of multi-national corporations have undertaken projects in 
Armenia, including General Motors, KPMG, Dynasty Mines, Huntsman, Coca-
Cola, Marriott Corporation, and Midland Bank, to name a few. Currently, 
the United States is Armenia's second largest trading partner. Kirk 
Kerkorian, an American-Armenian industrialist, has pledged $250 million 
for a broad range of infrastructure, development and humanitarian 
projects in Armenia.
    The United States can and should continue to heighten its 
activities in promoting and facilitating U.S. direct foreign 
investment, trade and economic development in Armenia.
    President Clinton has consistently found Armenia to be in full 
compliance with the freedom of emigration requirements under title IV 
of the Trade Act of 1974. Extending unconditional normal trade 
relations to Armenia will not only enhance trade and investment between 
the United States and Armenia, but will also enable the United States 
to avail itself of all the rights under the World Trade Organization 
(WTO) with respect to Armenia when it becomes a member. The United 
States has pledged its support for Armenia's accession to the WTO.
    Given all of the above, the Armenian Assembly strongly supports the 
extension of unconditional normal trade relations to Armenia. We offer 
these comments solely on behalf of the Armenian Assembly of America, 
Inc. and no other client, person, or organization.

            Sincerely,
                                               Ross Vartian
                                                 Executive Director
      

                                


                  Atlantic Council of the United States    
                                       Washington, DC 20006

The Honorable
Philip M. Crane
Chairman
Ways and Means Sub-Committee on Trade
House of Representatives
Washington, DC

    Dear Mr. Chairman:

    Thank you for asking the Atlantic Council of the United States to 
submit comments concerning extension of unconditional Normal Trade 
Relations (NTR) to Albania. I am a Vice Chair of the Atlantic Council 
and have been Chair of its Balkan Task Force since its inception in 
1996. I have also participated actively in the Council's work on Russia 
and Ukraine and, by extension, the Newly Independent states, including 
Armenia, Georgia, and Moldova, the other countries being considered for 
extension of NTR.
    I strongly support extension of unconditional NTR to these 
countries. They have long since met the criteria of the Jackson-Vanik 
amendment. They are on the verge of entering the World Trade 
Organization. Their integration into the world economy and the 
development of healthy trade relations with them rank among important 
foreign policy interests of the United States.
    Specifically, with regard to Albania, that country borders one of 
the most volatile and dangerous areas in Europe. It emerged earlier in 
the decade from one of the most oppressive dictatorships in the world. 
It badly needs steadying. Development of healthy commercial relations 
with other countries including the United States will promote stability 
and growth for Albania. Participation in the WTO will provide Albanian 
trade officials and their superiors in government and the legislature 
an opportunity for interaction with counterparts from around the world 
which will bring benefits far beyond the tangible fruits of good trade 
relations. Developing such ties will help stabilize Albania and also 
have a salutary effect on the region as a whole.
    In a paper published this summer by the Atlantic Council our Balkan 
Task Force argued forcefully for a ``regional approach'' to problems in 
the Balkans. We recognized that instability in one part can lead to 
general instability. Now, through the ``Stability Pact,'' European 
nations, with the participation of many others, have taken the lead in 
applying such a regional approach. Extending unconditional NTR to 
Albania would represent a small, but necessary step by the United 
States to further the goal of regional stability in the Balkans.

            Sincerely,
                                                 Roger Kirk
                                       Former Ambassador to Romania
                                    Chair, Balkan Task Force of the
                              Atlantic Council of the United States
      

                                

                              Distilled Spirits Council    
                                 of the United States, Inc.
                                                   October 15, 1999

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

Re: Extension of Unconditional Normal Trade Relations to Albania, 
        Armenia, Georgia and Moldova

    Dear Mr. Chairman:

    On behalf of the (DISCUS), I am writing to express our strong 
support for the extension of unconditional normal trade relations (NTR) 
to Albania, Armenia, Georgia and Moldova. DISCUS is the national trade 
association representing U.S. producers, marketers and exporters of 
distilled spirits products.
    Over the past several years, DISCUS has been working closely with 
officials of the Office of the U.S. Trade Representative in an effort 
to secure improved terms of access to the markets of Albania, Armenia, 
Georgia and Moldova within the context of their respective accessions 
to the World Trade Organization. USTR negotiators have succeeded in 
striking market access agreements with these countries which require 
them to substantially reduce, and in some cases eliminate, existing 
high tariff barriers on imported distilled spirits. In addition, the 
respective protocols of accession require these countries to provide 
the full range of protection for trademarks and geographical 
indications required by the Agreement on Trade Related Intellectual 
Property (TRIPs), immediately upon accession.
    These excellent agreements will afford U.S. distillers the 
opportunity to enter and develop these markets for their products, 
while providing the necessary means to protect their commercial 
property. The extension of NTR on an unconditional basis to each of 
these countries will create the stable trading environment necessary to 
enable U.S. distillers to take full advantage of these opportunities. 
It also will ensure that U.S. companies are not placed at a competitive 
disadvantage vis-a-vis the firms of other WTO members who are prepared 
to fully apply the WTO to these countries upon their accession.
    For these reasons, we strongly support the early enactment of 
appropriate legislation by the Congress extending unconditional NTR to 
Albania, Armenia, Georgia and Moldova upon their accession to the WTO.

            Sincerely,
                                                Mark Z. Orr
                     Vice President, International Issues and Trade
      

                                

                          Congress of the United States    
                                       Washington, DC 20515
                                                   October 15, 1999

The Honorable Philip M. Crane
Chairman
Subcommittee on Trade
Committee on Ways and Means
Washington, DC 20515

    Dear Chairman Crane:

    In response to the Trade Subcommittee's request for written 
comment, we express our support for legislation authorizing the 
President to determine that the Jackson-Vanik amendment should no 
longer apply to Albania. By doing so, we would not only grant 
unconditional normal trade relations to Albania and provide for a WTO 
relationship between our two countries, but we would recognize 
Albania's strong support for the United States and the international 
community over the past year.
    During the conflict in Kosova, one nation distinguished itself in 
its assistance to the allies and the refugees, alike. Albania not only 
opened its military bases to American and NATO armed forces, but it 
opened its doors to almost 500,000 Kosovar refugees fleeing Milosevic's 
tyranny.
    Less prominently, however, Albania has made extensive changes to 
its trade laws in recent months as it prepares to join the World Trade 
Organization at the upcoming Seattle ministerial meeting. These 
changes, made at the behest of the United States Trade Representative, 
bring Albania's legal code into line with WTO requirements.
    Unfortunately, when Albania joins the WTO, the protections and 
obligations of the WTO will not apply between the United States and 
Albania. This is because Albania's trade status is still conditioned by 
the Jackson-Vanik amendment (Title IV of the Trade Act of 1974), unlike 
most of Central Europe's former communist countries.
    Albania's emigration policies and its bilateral trade relationship 
with the United States have met the requirements of Jackson-Vanik for 
several years, allowing the President to consistently extend normal 
trade relations to Albania. Yet, because America's extension of NTR to 
Albania remains conditional--against the WTO rules--our country will 
not be able to utilize WTO mechanisms to enforce the organization's 
regulations.
    We, therefore, strongly support passage of legislation, such as 
H.R. 2746, which would graduate Albania from Jackson-Vanik. As you 
know, the United States Trade Representative and the State Department 
strongly support such legislation.
    Given Albania's far-reaching cooperation over the last year, its 
steady compliance with Jackson-Vanik rules, and its coming WTO 
membership, it is time to take the step which has already been applied 
to other new democracies in Central Europe. Congress should now pass a 
law graduating Albania from Jackson-Vanik.

            Sincerely,
                                   Eliot L. Engel
                                   Steny Hoyer
                                   Sue Kelly
                                   Jerrold Nadler
                                   Jim Moran
                                   Tim Roemer
                                   Marcy Kaptur
                                   Judy Biggert
                                   Vito Fossella
                                   Donald M. Payne
                                   Joseph Crowley
                                   John Olver
                                   Peter King
                                   Chris Smith
                                   Nita Lowey
                                   Jim McGovern
                                   David Bonior
                                   Jim Maloney
      

                                


                                      JBC International    
                                       Washington, DC 20006

Mr. A.L. Singleton
Chief of Staff
Committee on Ways & Means
US House of Representatives
1102 Longworth House Office Building
Washington, DC 20515

    Dear Mr. Singleton:

    JBC International, an international trade-consulting firm in 
Washington, DC, fully supports the extension of unconditional Normal 
Trade Relations (NTR) to Albania, Armenia, Georgia, and Moldova. These 
countries have engaged in several fundamental changes to open their 
markets to US exports. Their political and economic transformations 
have allowed them greater harmonization with trade liberalizing 
international agreements that will help these nations gain access to 
the continued growing of the global economy.
    Albania: With accession to the WTO imminent, Albania should be 
granted NTR status. By gaining membership to WTO, Albania agrees to all 
the statutes currently in place. These include provisions for 
democracy, the defense of human rights, as well as opening the Albanian 
market. In addition, Albania proved itself a defender of human rights 
values in its efforts to aid fleeing refugees from Kosovo.
    Armenia: Armenia has shown much dedication to the values for which 
the US stands in terms of granting NTR status. Since the breakup of the 
Soviet Union, Armenia established itself as a republic with universal 
suffrage and the right of self-determination for its citizenry. In 
addition, the government of Armenia has committed itself to the WIPO 
Treaty, indicating their commitment to the protection of intellectual 
property rights. Finally, with half the population living in poverty, 
such a bilateral agreement will help the country sustain increased 
economic development, providing the US with stronger influence in the 
Former Soviet Union.
    Georgia: Georgia has demonstrated many characteristics similar to 
Armenia. Many industries privatized after the breakup of the Soviet 
Union. Georgia also signed the WIPO agreement and is in the WTO 
accession process.
    Moldova: The government has taken many steps to open its economy. 
Through privatization, floating currency and prices, market forces play 
a larger role in its economy. The remaining characteristics from the 
countries above are also true for Moldova.
    We are encouraged that the US Congress, particularly the House Ways 
& Means Committee, actively promotes global free trade efforts. These 
legislative changes will open many doors for the US, both in terms of 
economic expansion of markets and as a tool to further our foreign 
policy objectives in these regions. NTR will also contribute to greater 
economic development in the individual countries.
    JBC International thanks the House Ways and Means Committee for the 
opportunity to comment on the extension of NTR to Albania, Armenia, 
Georgia and Moldova.

            Sincerely,
                                              James Clawson
      

                                


Statement of Ilir Zherka, Executive Director, National Albanian 
American Council

    On behalf of the National Albanian American Council, I urge 
that, before it recesses this year, the Congress extend normal 
trade relations (NTR) to Albania.
    Unfortunately, Albania does not currently enjoy normal 
trade relations with the United States due to the ``Jackson-
Vanik Amendment'' (Title IV of the Trade Act of 1974). This is 
true even though Albania's emigration policies and its 
bilateral trade relationship with the United States have met 
the requirements of Jackson-Vanik for several years, allowing 
the President to consistently extend normal trade relations to 
Albania.
    Moreover, Albania has made extensive changes at the request 
of our Trade Representative to its trade laws recently. Albania 
joined the World Trade Organization as a result of these 
changes, and the Administration now strongly supports extending 
NTR to Albania.
    Throughout the last decade, Albania has been a staunch 
supporter of NATO and the United States. Moreover, during the 
Kosova conflict, Albania opened its military bases to American 
and NATO armed forces.
    As we renew our efforts to rebuild the Balkans, we should 
not leave Albania behind. Extending NTR to Albania is the least 
we can do to help an ally of the United States stabilize its 
economy. I hope the Congress will take action during this 
session to extend NTR to Albania.
      

                                


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 Albania, 
Armenia, Georgia, and Moldova. 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. Since NCSJ's role 
representing the organized American Jewish community is 
confined to conditions and policies with respect to the 
successor states of the former Soviet Union, these comments 
will not address the question of Albania's trade status and 
focus instead on the three successor states of Armenia, 
Georgia, and Moldova.
    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 Armenia, Georgia and Moldova 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 or acquires 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 extension of unconditional NTR.
    As with the case of the Kyrgyz Republic, for which NCSJ 
submitted written comments on June 11, 1999, the consideration 
of graduating from the terms of Jackson-Vanik can be a 
constructive process beyond the immediate consequences for 
bilateral trade relations. While the enactment of legislation 
to graduate Armenia, Georgia and Moldova should be based upon 
country-specific criteria, the mechanism for arriving at this 
determination should neither be more stringent nor less 
rigorous than the standard to be applied to other former 
republics of the Soviet Union.
    NCSJ believes that any legislation to graduate Armenia, 
Georgia or Moldova from Jackson-Vanik should acknowledge 
assurances from the respective governments concerning 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 the accession of a given 
state to the WTO. Rather, graduation of any former Soviet 
republic 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 ethnic and religious minorities 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.

                                ARMENIA

    Armenia's Jewish community is relatively well treated and 
maintains a good working relationship with the government. NCSJ 
views Armenia as having been in compliance with the freedom of 
emigration requirements of Jackson-Vanik. Outstanding issues 
include the restitution or substitution of communal property 
and the return of religious articles seized under Soviet rule. 
A growing relationship with Israel and the West also sends an 
encouraging message as to Armenia's future direction.
    Recent parliamentary elections demonstrated progress in 
both the structure and procedures, especially within the 
context of recent elections throughout the region. Armenia's 
participation in local and multilateral mechanisms to resolve 
regional disputes is also an encouraging sign of future 
possibilities. One of Armenia's greatest resources is a 
sophisticated and well-educated diaspora community, notably in 
the United States, that continues to play a vital role in the 
continued development of Armenia's civil society.

                                GEORGIA

    Jews first arrived in Georgia 2,600 years ago, and have 
enjoyed relatively good treatment ever since. The government is 
responsive to concerns of the Jewish community, despite 
outstanding issues of property restitution, and has cultivated 
close relations with the United States and Israel.
    The personal leadership and vision of President Eduard 
Shevardnadze presents a useful model for other Soviet successor 
states, but Georgia's future is not yet guaranteed. Beyond the 
challenge of developing the next generation of domestic 
leaders, instability continues to plague Georgia's geographic 
and political fringes. As with Armenia and Moldova, a series of 
formal statements by the current government, committing future 
leadership and institutions to the same path toward pluralist 
democracy and free markets, would enshrine the values and goals 
of President Shevardnadze in away that transcends the 
application of Jackson-Vanik.

                                MOLDOVA

    Moldova is home to a rich variety of Jewish religious and 
cultural life, and the government has positive relations with 
Israel. Only a fraction of communal property has been returned 
to the Jewish population, in contrast to the Orthodox Church, 
which has received nearly all of its outstanding property 
claims. Although the Moldovan government has worked closely 
with the Jewish community to resolve specific concerns, other 
minorities have been subject to discrimination due to ethnicity 
or difficulties in using the Moldovan language. Emigration is 
generally free, though the law requires consent by dependent 
relatives. The law on religion, while not as restrictive as 
some others in the former Soviet Union, could potentially be 
misused to target individual religions.

                               CONCLUSION

    NCSJ recommends strongly that the Ways and Means Committee 
consider legislation that clearly expresses the continued long-
term commitment of the United States to free emigration, 
minority rights, and freedom of religion. This should proceed 
within the deliberate context of ensuring future adherence to 
international norms and obligations, thereby advancing the 
goals of Jackson-Vanik. In this regard, NCSJ will continue to 
be in contact both with Members of the Committee and the 
Committee staff to present its detailed views.
      

                                


                      Union of Councils for Soviet Jews    
                                       Washington, DC 20006
                                                   October 14, 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 cases of Georgia, Armenia and Moldova, UCSJ and its 
Tibilisi-based Caucasus-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, now known as normal trade relations (NTR), for these 
three countries.
    We, on behalf of UCSJ's Board of Directors and President, Yosef 
Abramowitz, appreciate the opportunity that the Ways and Means 
Committee is providing to comment on possible legislation to 
permanently remove Georgia, Armenia and Moldova from the Jackson-Vanik 
regime and to grant permanent and unconditional NTR status. The central 
question presented here is whether conditions have changed sufficiently 
in these three countries to warrant their removal from a system that 
has, in UCSJ's opinion, promoted crucial United States and 
international values of human rights and democracy.
    When it was first enacted the subject matter of the Jackson-Vanik 
Amendment was freedom of emigration. In this area, UCSJ finds that 
there are no significant direct obstacles to emigration in Georgia, 
Armenia and Moldova.
    However, for many years the Jackson-Vanik Amendment has 
operationally served as a yardstick with which the United States 
Government has measured progress on a broad spectrum of human rights 
concerns. In this area, particularly in light of the massive social and 
economic instability in the region, concerns remain that Georgia, 
Armenia and Moldova continue to suffer from human rights violations in 
a number of areas.
    UCSJ's concerns in these countries, consistent with reporting from 
the Department of State, include the following.
    In Georgia a campaign is underway to ban the Jehovah's Witness 
faith and the Tbilisi Jewish community have been blocked from obtaining 
the return of their Synagogue--an effort that has included antisemitic 
rhetoric and harassment from the public and the media.
    In Armenia serious human rights violations have occurred in the 
military, a discriminatory religion law has been enacted and 
allegations of torture have been made against the police.
    In Moldova journalists are reported to practice significant self 
censorship when covering public officials, the state security apparatus 
operates largely unchecked and President Petru Lucinschi has undertaken 
a campaign to centralize political power in his office thereby 
undermining Moldovan democracy.
    We have attached a UCSJ statement, Human Rights Concerns in 
Georgia, Armenia and Moldova, that provides details on the continuing 
struggle for human rights in these countries.

                              Conclusion 

    The above discussion, and the attached supplemental 
document, demonstrates that many human rights problems remain 
in Georgia, Armenia and Moldova. The United States Government 
should insist in its negotiations with these governments that 
these problems be addressed prior to considering further trade 
concessions.
    Thus, at this time, UCSJ recommends that the Committee on 
Ways and Means not graduate Georgia, Armenia and Moldova from 
the terms of the Jackson-Vanik Amendment, while continuing to 
support granting NTR through the annual waiver process. This 
result offers all of the economic benefits of NTR, but 
maintains the vital human rights leverage of the Jackson-Vanik 
regime at a time of great instability and change in the region. 
Graduation from Jackson-Vanik would also implicitly abandon the 
United States' essential statement of its commitment to these 
countries' human rights progress.
    Thank you for seeking UCSJ's view on this important policy issue. 
UCSJ looks forward to working with the Ways and Means Committee as it 
reviews possible graduation of Georgia, Armenia and Moldova, as well as 
any other countries of the FSU that may be considered in the future.

            Sincerely,
                                   Micah H. Naftalin
                                           National Director
                                   Gideon Aronoff
                                           Deputy Director

Enclosure
      

                                


HUMAN RIGHTS CONCERNS IN GEORGIA, ARMENIA AND MOLDOVA,

October 14, 1999

                                Georgia

Religious Persecution

    The U.S. Department of State's Annual Report on 
International Religious Freedom for 1999 reported that a trial 
against Jehovah's Witnesses began June 1999 in Tbilisi. 
Georgian parliamentary deputy Guram Sharadze asked the court to 
revoke their registration on account of their ``anti-state, 
anti-national and anti-Orthodox'' activities. Harassment of 
Protestant organizations has increased in 1999.
    In June 1999, police in the Gldani district of Tbilisi 
broke up a series of rallies by the Madli Evangelical Church 
and attacked some of its members. Following threats and insults 
by the police, the church filed charges with the human rights 
ombudsman.

Antisemitism

    In August 1999 the Union of Councils for Soviet Jews 
released a report on antisemitism in the Caucasus. The study 
found increased antisemitism stemming from political 
instability, lack of responsiveness by local officials to the 
concerns of the Jewish community, and police indifference to 
the desecration of Jewish cemeteries in Tbilisi. In addition, 
the conflict surrounding the return of the synagogue in Tbilisi 
to the Jewish community has led to antisemitic articles in the 
media. Also, kidnappers are again targeting the Jewish 
community.
    The U.S. Department of State's Annual Report on 
International Religious Freedom for 1999 reported that the 
Jewish community experienced delays in the return of property 
confiscated during Soviet rule. Jewish leaders attribute 
isolated acts of antisemitism, including the publication of 
antisemitic newspaper articles and the destruction of Jewish 
communal property, to general instability and disorder.
    In August 1999, Stalin's grandson, Yevgeny Jugashvili, who 
has made public antisemitic statements in Russia, was elected 
the head of the Georgian People's Patriotic

                                Armenia

Religious Persecution

    In September 1999, the U.S. Department of State's Annual 
Report on International Religious Freedom for 1999 reported 
that the Armenian law on religion forbids proselytizing by any 
religion but the Armenian Apostolic Church and that all other 
faiths are required to register with the Council on Religious 
Affairs. The Jehovah's Witnesses have not been granted 
registration. Hazing of new conscripts, a problem throughout 
the former Soviet Union, is especially severe for Yezidis and 
other ethnic and religious minorities

Antisemitism

    The Union of Councils for Soviet Jews published a report on 
antisemitism in the Caucasus in August 1999. The report 
documents that Israel's growing alliance with Azerbaijan and 
Turkey has provoked some antisemitic sentiment by Armenians and 
that some Armenians feel that the Holocaust has diverted the 
world's attention away from the mass killings of Armenians in 
Turkey in 1915.

Human Rights

    In January 1999, Human Rights Watch sent a 12-page letter 
to Armenian President Robert Kocharyan complaining of human 
rights abuses in the country. The group highlighted physical 
abuse in the army that has in some cases led to death, physical 
abuse by police officers, harassment of journalists, government 
sponsored religious intolerance, and abuses during last year's 
presidential election. Human Rights Watch urged the Council of 
Europe to reject Armenia's application for membership due to 
these violations.
    In October 1999, the International Helsinki Federation for 
Human Rights appealed to President Kocharyan to investigate the 
deaths of three men who died in police custody, most likely as 
a result of beatings by police officers.

                                Moldova

Religious Persecution

    The U.S. Department of State's Annual Report on International 
Religious Freedom for 1999 reported that in the Trans-Dniestr area, a 
breakaway region of Moldova controlled by Russian separatists, the 
Jehovah's Witnesses have been denied registration.
    In February of 1999, the Moldovan Helsinki Committee for Human 
Rights accused the Moldovan government of ratifying the European 
Convention on Human Rights but not complying with it. The Committee 
urged that a new penal code, a policy on national minorities and a non-
discriminatory attitude towards religion be adopted.
    On June 25 1999, a partially built Baptist Church in Gelo Mengir 
was destroyed by a mob of several hundred Orthodox Christians. A local 
Orthodox priest claimed that attack took place because Baptists were 
``proselytizing'' in the village.

Antisemitism

    The U.S. Department of State's Annual Report on International 
Religious Freedom reported that the Jewish community has had mixed 
results in recovering its property, in contrast to the Orthodox Church.

Human Rights

    In August of 1999, Petru Lucinschi, the President of Moldova, 
called for sweeping changes to the country's constitution. He proposed 
that power be handed over from the Parliament and executive branch 
directly to him so that he would have the right to form, dismiss and 
control the government.
    The U.S. Department of State's Country Report on Human Rights 
Practices for 1998 in Moldova reported that police occasionally beat 
detainees and prisoners. Prison conditions remain harsh, with attempts 
to improve them are hampered by lack of funding. Security forces 
monitor political figures, use unauthorized wiretaps, and at times 
conduct illegal searches. The Constitution potentially limits the 
activities of the press, political parties, and religious groups. 
Journalists practice self-censorship because of a liberal libel law 
that allows public officials to sue journalists for criticizing their 
public actions.
      

                                

                               U.S.-Albanian Foundation    
                                       Washington, DC 20005
                                                   October 15, 1999

The Honorable Phil M. Crane
Chairman
Subcommittee on Trade
Committee on Ways and Means
Washington, D.C. 20515

    Dear Mr. Chairman:

     The U.S.-Albanian Foundation strongly supports the extension of 
unconditional normal trade relations to Albania. We urge the Committee 
to report out favorably legislation authorizing the President to 
determine that Albania has met the requirements of the Jackson-Vanik 
amendment regarding emigration policy.
     Admirably, Albania has assisted Albanians in the Balkan region who 
have fled the tyranny of the Milosevic regime. Throughout the recent 
conflict, Albania clearly demonstrated its support for the principles 
and the people, which the United States sought to affirm and defend.
     While Albania must still take many steps to further establish 
democracy and a free market, with the support of the United States 
these goals can be met. We believe it is manifestly in the interest of 
the United States to support Albania on its path to joining the 
international democratic community and becoming a stable partner in the 
Balkan region.
     The U.S.-Albanian Foundation was created in 1998 to promote 
democratic and free market principles which will help Albanians in the 
Balkan region build a better future for themselves. The Foundation 
assists current and future democratic leaders and opinion-makers in 
learning the practices and skills of a civil society. The U.S.-Albanian 
Foundation is a not-for-profit foundation incorporated in the District 
of Columbia committed to the democratic and economic development of 
Albania and Albanians in the Balkan region by managing educational and 
technical training programs consistent with democratic, pluralistic and 
free market principles.
     The Foundation's programs are modeled on the successful programs 
of the U.S.-Baltic Foundation which for ten years has designed and 
managed education and democratic institution building programs for non-
governmental organizations, independent media, public administration 
and local government in Estonia, Latvia and Lithuania. These programs 
have trained thousands of Baltic leaders and established eight 
permanent local democratic training institutions. The U.S.-Baltic 
Foundation has also united all Americans, ethnic and non-ethnic, who 
care about the Baltics into a constituency of over 4,000 American 
program volunteers and donors.
     The value of the exchange of Americans from all around the United 
States and the creation of permanent local democratic institutions have 
forged links between the United States and the Baltic countries whose 
value far exceeds the initial investment--made through public-private 
partnerships--in the programs.
     The U.S.-Albanian Foundation's mission is to distinguish itself as 
an innovative, independent not-for-profit whose programs--such as 
scholarships to study or gain professional experience through 
internships in the United States for promising future Albanian 
leaders--will serve as a bridge between Albanians in the Balkan region 
and an American network of professional resources in the fields of NGO 
management, education, local governance, free market development and 
independent media.
     When Albania joins the WTO, Albania should be prepared to meet the 
obligations, as well as to enjoy the protections, of membership. 
However, if Albania's trade status remains conditioned by Jackson-
Vanik, it will be at a disadvantage to most of the other Central 
European former communist countries who are no longer governed by Title 
IV.
     The U.S.-Albanian Foundation therefore strongly supports passage 
of legislation, such as H.R. 2746, which would graduate Albania from 
Jackson-Vanik. This step will go a long way in securing American 
support and ensuring future prosperity for Albanians in the Balkan 
region.

            Sincerely,
                                                  Jim Xhema
                                President, U.S.-Albanian Foundation

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