[Congressional Record Volume 142, Number 114 (Tuesday, July 30, 1996)]
[Senate]
[Pages S9156-S9157]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FOREIGN OPERATIONS APPROPRIATIONS BILL
Mr. KYL. Mr. President, I am pleased and honored to offer an
amendment to the Foreign Operations Appropriations bill for assistance
to Ukraine. Ukraine's achievement this year in the areas of ethnic
stability, human rights and constitutional reform are significant, and
fully justify the substantial earmark of aid being proposed. My
proposal will not change the total amount of the appropriation, but it
will provide assurance that appropriated funds will be used in the
interest of both the United States and Ukraine.
I believe that the best forms of foreign aid are those which
strengthen the recipient from within and lead toward self sufficiency
and, ultimately, independence from any assistance from the United
States or other foreign sources.
In this spirit, I propose this earmark in the amount of $25 million
for the purpose of helping to create a complete, modern system of
commercial law in Ukraine, including not only substantive laws which
are compatible with international standards but also training and
equipping of an independent judiciary and legal profession, which as we
know are the cornerstones of law-based economy.
Such a fundamental transformation--from a totalitarian command
economy to a self-sustaining free market--cannot be achieved without
substantial technical assistance. Until now, assistance for
comprehensive commercial law reform has been provided to Ukraine
largely through pro bono publico, through a commendable program of
donated aid known as the Commercial Law Project for Ukraine. These
private efforts, no matter how praiseworthy, are inadequate to bring
about the fundamental reforms which are so urgently needed, the earmark
which I propose would fill that need and bring the goal of economic
self-sufficiency for Ukraine closer to a reality.
The philosopher John Locke wrote, ``Where law ends, tyranny begins.''
It is also true that, where law begins, tyranny ends. In this spirit, I
propose an earmark for legal and commercial law restructuring in
Ukraine.
I ask unanimous consent to have printed in the Record three letters
in support of this amendment from Yuri Shcherbak, Ambassador of
Ukraine, Orest A. Jejna, President of the Ukrainian American Bar
Association, Askold Lozynskyj, President of the Ukrainian Congress
Committee of America.
There being no objection, the letters were ordered to be printed in
the Record, as follows:
Embassy of Ukraine,
Washington, DC, July 5, 1996.
Re foreign assistance appropriations for fiscal year 1997--
sub-earmark for legal reform-commercial law
restructuring.
Hon. Mitch McConnell,
U.S. Senate,
Washington, DC.
Dear Senator McConnell: Thank you very much for your
successful sponsorship of a foreign aid earmark for Ukraine
in the Foreign Operations Subcommittee. Please call on me or
my staff at any time if we can assist you in the coming weeks
to win Congressional approval of the earmark.
I am writing at this time to indicate my support for the
addition of a sub-earmark for legal reform and commercial law
restructuring as recently proposed by the Ukrainian American
Bar Association. I respectfully request that you support the
addition of such a sub-earmark, which will help to assure
that U.S. assistance will promote the establishment of the
rule of law in Ukraine.
This sub-earmark would be especially encouraging for my
country in respect to the adoption of the New Constitution of
Ukraine and preparation of a great number of legislative acts
following the Constitution.
Ukraine wants from the U.S. only that assistance which will
make her self-sufficient and independent of all foreign aid.
Proposals such as that by the Ukrainian American Bar
Association help to bring the goal of self-sufficiency closer
to realization.
Thank you once again for your support for our common cause
of revitalization of Ukraine.
With warmest regards, I remain,
Respectfully,
Yuri Shcherbak,
Ambassador of Ukraine to the USA.
____
Ukrainian American
Bar Association,
Phoenix, AZ, July 2, 1996.
Senator Mitch McConnell,
Russell Senate Office Building,
Washington, DC.
Dear Senator McConnell: Thank you for your sponsorship of
an earmark of aid to Ukraine. Your courageous advocacy has
promoted vital U.S. interests while bringing freedom to the
people of Ukraine.
I want to add my voice to those who are requesting
inclusion of an additional subearmark for legal reform and
commercial law restructuring as necessary to support a
decentralized, market-oriented economy. The funds granted to
date by the U.S. government for comprehensive commercial law
reform in Ukraine have been woefully inadequate to provide
Ukraine with the necessary foundation for a functioning
private sector.
I believe it is encumbent upon Congress to support
assistance projects which will promote Ukraine's self-
sufficiency and eventual independence from U.S. foreign aid.
Commercial law reform and other fundamental legal reforms are
among the most important priorities in achieving self-
sufficiency for Ukraine.
If it is feasible at this juncture, I urge Congress to
adopt an additional subearmark for legal reform in Ukraine as
follows:
``$25,000,000.00 for legal restructuring necessary to
support a decentralized market-oriented economic system,
including the creation of all necessary substantive
commercial law, all reforms necessary to establish an
independent judiciary and bar, legal education for judges,
attorneys and law students, and public education designed to
promote understanding of a law-based economy.''
If you wish any additional information on the position of
the Ukrainian American Bar Association, do not hesitate to
contact me at (602) 254-3872. Thank you for your
consideration of this subject of vital concern.
Respectfully,
Orest A. Jejna,
President.
____
Ukrainian Congress,
Committee of America,
New York, NY, June 11, 1996.
Hon. Mitch McConnell,
U.S. Senate,
Washington, DC.
Dear Senator McConnell: On behalf of the Ukrainian Congress
Committee of America, Inc. (UCCA), the representative
organization of the Ukrainian-American community, please
allow me to once again thank you for your leadership in the
passage of the $225
[[Page S9157]]
million earmark for Ukraine in FY 1996. The continuance of
foreign aid to Central Europe and Ukraine are vital to the
security of the United States and the entire world. More
importantly, foreign assistance, which is properly
distributed, will help insure the stability and security of
Ukraine.
Since independence almost five years ago, Ukraine and its
people have been striving for political, economic, and social
reform. The issue at hand is that Ukraine, like many other
developing countries, cannot accomplish these reforms alone.
Only by the guidance and assistance of the United States can
Ukraine endure this transition period.
It has come to the attention of the UCCA that during the
upcoming deliberations in the Senate Sub-Committee for
Foreign Operations, the opportunity to introduce another $225
million earmark for Ukraine will likely present itself,
though issues remain as to how that earmark will be sub-
marked. The UCCA strongly endorses the following programs as
sub-earmarks for the next fiscal year.
A sub-earmark of $50 million for energy-sector
restructuring, designed to alleviate Ukraine's critical need
for energy resources and to improve efficiency of its large
fossil-fuel and nuclear plants, therefore lessening the
chances of another catastrophic nuclear accident of global
proportions;
A sub-earmark of $50 million for the continued reform of
the agricultural sector in Ukraine under the Food Systems
Restructuring Program (FSRP) to be matched with private
sector funding. Presently, the agricultural sector in Ukraine
comprises nearly 60% of its GDP. For Ukraine to become
economically self-sufficient, it must be provided the
opportunity for greater efforts to enhance agricultural
reform;
A sub-earmark of $45 million for the creation of a business
incubator center that provides seed capital, as well as
lending and equity investments to promote the growth of
small- and medium-sized businesses in Ukraine.
A sub-earmark for $25 million for legal system
restructuring, designed to reform the Ukrainian judiciary
system and provide Ukraine with critically needed course
materials for its law schools. Commercial law reform also
remains vital in identifying the types of law and legal
procedures which are necessary for the operation of a
decentralized free market economic system, with special
emphasis on contract enforcement mechanisms and the
establishment of arbitration courts;
A sub-earmark of $20 million for business development
programs targeting the privatization of large-scale
enterprises, which would further stimulate the growth of the
private sector in Ukraine;
A sub-earmark of $15 million for democracy-building
programs that enable the development and expansion of efforts
for further democratization in Ukraine;
A sub-earmark of $10 million for medication, hospital
supplies, and training of physicians under a program to
facilitate the treatment of cancers and other diseases
related to the Chornobyl nuclear accident;
A sub-earmark of $5 million to promote the formation of
independent broadcast and print media centers, essential
elements of a democratic, law-based society; and
A sub-earmark of $4.5 million for FBI legal attache
offices, intended to respond to the increased threats of
international terrorism and the troubling rise of corruption
and organized crime in the former Soviet region which
directly jeopardize U.S. interests at home and abroad.
Furthermore, business and university partnerships between
Ukraine and U.S. should be developed to enhance a cooperation
of business expertise and knowledge. These programs would
provide training for sophisticated technology use and advance
Ukraine in its commitment for economic reform. I urge that
you consider the sub-earmarks proposed, which would guarantee
Ukraine its fair share of the foreign aid directed to the
NIS.
Again, thank you for your dedication to Ukraine's course of
economic and political reform. If you have any questions,
please feel free to contact Michael Sawkiw, Jr., Director of
the Washington, D.C. office of the UCCA at (202) 547-0018
(tel) or (202) 543-5502 (fax).
Sincerely,
Askold S. Lozynskyj,
President.
____________________