[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.

                          ____________________