[Congressional Record Volume 144, Number 19 (Tuesday, March 3, 1998)]
[Extensions of Remarks]
[Pages E268-E269]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


  THE MIDDLE EAST AND NORTH AFRICA BANK FOR ECONOMIC COOPERATION AND 
                        DEVELOPMENT (MENA BANK)

                                 ______
                                 

                          HON. LEE H. HAMILTON

                               of indiana

                    in the house of representatives

                         Tuesday, March 3, 1998

  Mr. HAMILTON. Mr. Speaker, I am concerned that efforts at regional 
economic integration, an important part of the Middle East peace 
process, have fallen by the wayside. The Middle East and North Africa 
Bank for Economic Cooperation and Development (MENA Bank) is an 
important U.S.-sponsored initiative to foster regional economic 
integration, and that Bank has yet to begin operations. A key part of 
the problem is that the United States has yet to provide funding to 
capitalize that Bank, and so other Members of the Bank have also been 
reluctant to provide funding. On December 23, 1997 I wrote to Secretary 
Albright concerning United States support and funding for the MENA 
Bank, and on February 4, 1998 I received a reply. The text of the 
correspondence follows:

             House of Representatives, Committee on International 
                                                         Relations
                                Washington, DC, December 23, 1997.
     Hon.  Madeleine K. Albright,
     Secretary of State, Department of State, Washington, DC.
       Dear Madeleine: I write to state my strong support for U.S. 
     funding for the Bank for Economic Cooperation and Development 
     in the Middle East and North Africa (MENABANK).
       It is a source of concern to me that Congress so far has 
     failed to provide for the U.S. share of MENABANK capital 
     contributions. As a result, it has been difficult for the 
     United States to provide the needed leadership to make the 
     bank a reality, and this entire effort to enhance and 
     backstop the peace process has floundered. Unfortunately, 
     little progress has been made over the past two years toward 
     establishment of the MENABANK, and it is still far away from 
     beginning operations.
       I am convinced that this Bank can fulfill a very important 
     role in support of the Middle East peace process. Its 
     intended emphasis on privatization and regional cooperation 
     is exactly the focus needed to promote peace and economic 
     growth to bolster the peace process.
       It is my understanding that some in Congress are reluctant 
     to provide funds for this initiative, in addition to funds 
     otherwise available for the Middle East. As you put together 
     the Fiscal Year 1999 budget request, I would urge you to give 
     priority to the MENABANK, even if it is at the expense of 
     other Middle East priorities in the International Affairs 
     budget account.
       At a time when some key aspects of the Middle East peace 
     process are so troubled, I believe it is especially important 
     to the U.S. national interest to foster regional economic 
     progress, and to foster hope. The MENABANK can do both. I 
     want to be helpful to you in any way I can in support of U.S. 
     funding and the Bank's early establishment.
       With best regards,
           Sincerely,
                                                  Lee H. Hamilton,
     Ranking Democratic Member.
                                  ____



                                     U.S. Department of State,

                                                   Washington, DC.
       Dear Mr. Hamilton: Thank you for your letter of December 
     23, 1997, to Secretary Albright concerning United States 
     funding for the Bank for Economic Cooperation and Development 
     in the Middle East and North Africa (MENABank). We appreciate 
     your support and that of others on the Hill for this 
     important peace process institution.
       The Administration shares your view that the MENABank will 
     play a seminal role in building stability in the Middle East 
     through facilitating stronger regional economic ties. As you 
     know, the MENABank is a product of an historic joint proposal 
     made in October 1994 by the four core parties to the peace 
     process: Egypt, Israel, Jordan, and the Palestinians. In 
     cooperation with the regional parties, the United States has 
     spearheaded the effort to bring the Bank into being.
       Perhaps the best ongoing example of our commitment is our 
     support of the multinational transition team in Cairo, headed 
     by former United States Ambassador David Dunford, which is 
     charged with setting up the Bank's structure. Already, the 
     team, which includes professional staff members from Israel, 
     Egypt, the United States, Japan Italy, the Netherlands, and 
     Canada, has developed a set of draft financial and 
     operational plans and an illustrative list of projects, which 
     should enable the Bank to be launched promptly once two-
     thirds of its initial capital is committed by its members.
       The Middle East currently receives only one percent of 
     global foreign direct investment. The region will need 
     investment of approximately $500 billion over the next ten 
     years to stimulate sustainable economic growth. The Bank's 
     focus on projects with a regional character and the ability 
     to use its $5 billion capital base to leverage significantly 
     greater flows of private resources is

[[Page E269]]

     crucial in ensuring the growth needed in the region. Only 
     with such growth can we hope to realize and sustain a more 
     stable and prosperous Middle East. In addition, the Bank will 
     help ensure that qualified individuals, often trained in the 
     United States, will remain in the region and contribute to 
     its growth.
       We look forward to working closely with you and your staff 
     in our continuing efforts to gather support for the MENABank. 
     Thank you again for your help with this critical initiative.
           Sincerely,
                                                   Barbara Larkin,
                         Assistant Secretary, Legislative Affairs.

     

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