[Congressional Record Volume 147, Number 73 (Thursday, May 24, 2001)]
[Extensions of Remarks]
[Pages E941-E943]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            INTERVIEW WITH UKRAINIAN PRESIDENT LEONID KUCHMA

                                 ______
                                 

                          HON. ELIOT L. ENGEL

                              of new york

                    in the house of representatives

                         Thursday, May 24, 2001

  Mr. ENGEL. Mr. Speaker, I rise to call to the attention of my 
colleagues a recent interview with Ukrainian President Leonid Kuchma 
which appeared in The International Jerusalem Post on May 11, 2001. 
This important interview discusses a wide range of matters from 
Ukraine's cooperation with NATO to its relations with Israel to its 
current state of economic development. The interview also provides 
President Kuchma an opportunity to respond to some of the criticism 
recently leveled against him.
  I ask that the article be printed at this point in the Congressional 
Record.

         [From the International Jerusalem Post, May 11, 2001]

                           The View From Kiev


      Ukrainian President Leonid Kuchma talks about his country's 
  relationship with Israel, the sometimes troubled past of its Jewish 
            community, and its political and economic future

                          (By Thomas A. Rose)

       Mr. President, thank you for agreeing to share your 
     thoughts with our readers. Your administration has come under 
     increasing criticism from opponents who accuse your 
     government of everything from failing to implement meaningful 
     economic reform to suppressing press freedoms and even to 
     charges that you were personally involved in the death of a 
     prominent journalist. As a result, many in the West, 
     particularly the United States, have started to question your 
     country's political stability. How would you respond to these 
     charges and concerns?
       Politically, Ukraine is both stable and predictable. 
     Industrial production is up, financial markets are improved, 
     our agricultural sector is showing great promise, and we are 
     beginning to see real progress in our effort to redress 
     social contradictions.
       Governmental bodies and the local authorities are 
     functioning normally.
       The world must know of the tremendous progress we have made 
     and of the tremendous progress we will make. Our state is 
     only 10 years old. In that short time, we have developed a 
     functioning democracy, a free press, an independent financial 
     system, and have become the first nation in history to 
     voluntarily renounce and destroy its nuclear weapons' 
     capability. These are not small accomplishments.
       Regarding the attacks against me personally, I would call 
     it more of an aggravation than a crisis. It is the 
     demonstration and consequence of the situational uniting and 
     stirring up of different forces and particular persons--
     political outsiders if you will--who are out for revenge and 
     the redistribution of power through unconstitutional means.
       Unfortunately, all the attention their outlandish charges 
     are gaining in the West has emboldened them to think that 
     they can threaten even the most considerable achievements of 
     our Ukrainian nation, which are independence and sovereignty. 
     Their ambition is to gain power for themselves. Yet, as you 
     would say, the proof is in the pudding.
       Domestically, which with all due respect, is the political 
     realm to which I am responsible, these people cannot find 
     support.
       As to the so called ``demonstrations'' which have been well 
     reported in the West, a few thousand paid participants in 
     these protests do not have the key role and do not determine 
     the general frames of mind of the Ukrainian people. In fact, 
     things in this regard seem to have peaked on March 9. This 
     has no doubt frightened the agitators, which is the very 
     reason why they are trying to internationalize their cause.
       However, I would be insincere if I do not say that 
     artificial, purposeful, and excess politicization does not 
     weaken our country and its ability to tackle the huge social 
     and economic problems we face.

[[Page E942]]

       My office shall never submit to the influence of such 
     provocations and shall not strengthen these pseudo-
     oppositionists.
       Mr. President, the question of NATO membership for your 
     country continues to be a point of friction between NATO, the 
     Russian Federation, and Ukraine. It seems as though your 
     administration has decided to back off from this initiative, 
     at least for now. Does this mean that your country is more 
     interested in improved relations with the Russian Federation, 
     perhaps at the expense of the West?
       I strongly object to the way you have raised this question.
       Ukraine has always been consistent in its interest in 
     cooperating with NATO. The beginning of the relations' 
     development between Ukraine and the Atlantic alliance was 
     made right after our country achieved its independence. Let 
     me remind you that I signed the charter on special 
     partnerships between Ukraine and NATO in 1997.
       Cooperation between Ukraine and NATO has been progressing 
     and covers a wide range of military and defense industries. 
     One of the key elements of the cooperation remains our 
     participation in the joint Ukrainian-Polish battalion and 
     Ukrainian helicopter platoons are acting now within the 
     contingent of peacemaking forces in Kosovo.
       Speaking of the possibility of membership of Ukraine in the 
     NATO alliance, my more direct answer to your question is that 
     while we are increasing our cooperation with elements of NATO 
     and the alliance, we are not ready to consider membership 
     yet. Unilateral political announcements about our interest or 
     readiness for implementation would be premature and harmful 
     to the alliance and my country.
       We are not reorienting our political outlook as you tried 
     to suggest.
       Ukraine looks forward to integrating itself in the European 
     direction as a strategic option, while at the same time 
     maintaining good relations with all our neighboring 
     countries, including those in the East.
       You have enjoyed notably good relations with all five of 
     the Israeli prime ministers with whom you have worked. 
     Knowing the troubled history of Ukrainian-Jewish relations, 
     do you view this association as an attempt at national 
     reconciliation or rather as a national strategic interest? In 
     your view, is it necessary for Ukraine to actively pursue 
     reconciliation with Israel and/or the Jewish people?
       I am very proud of the excellent relations between our two 
     great countries and my good relations with all of your 
     elected leaders. I had a particularly close relationship with 
     Ytzhak Rabin and I considered it a great honor to attend his 
     funeral.
       Earlier this year already I was delighted to receive the 
     president of the State of Israel, Moshe Katsav, who has 
     become my sincere friend. I am confident that President 
     Katsav's visit will result in new understandings between our 
     peoples.
       Regarding you new prime minister, I am convinced that the 
     heritage of this great son of the State of Israel will do all 
     he can to help to lead the Middle East region to the peace 
     and stability. Ariel Sharon is known in Ukraine as a 
     experienced statesman and military leader, and as a wise 
     person. He is very highly regarded. I hope that the policy of 
     his government will continue on its path of working to 
     achieve the goal sought by the Jewish people for countless 
     generations--a prosperous, secure, and stable Jewish state at 
     peace with its neighbors.
       In my letter of congratulation to then prime minister-elect 
     Sharon I reaffirmed the readiness of Ukraine to follow our 
     two countries' recent tradition of excellent bilateral 
     relations and close cooperation.
       Currently, the scope of our cooperation with Israel is 
     quite extensive. I look forward to working with Prime 
     Minister Sharon to even further expand our already expansive 
     commercial relations.
       Let's not forget the fact that nearly 400,000 of the 
     roughly one million recent immigrants to Israel from the 
     republics of the former Soviet Union are from Ukraine. This 
     alone is reason for a special relationship between our 
     countries. That so many of our former countrymen have decided 
     to make Israel their new home makes our concern about the 
     political situation in your region more acute. Terrorism and 
     violence that create distrust and hostility are especially 
     dangerous and inadmissible. It is a dead end. I said as much 
     in my recent message to Chairman Arafat, imploring him to do 
     all in his power to curb violent demonstrations and to resume 
     his fight against extremist organizations.
       At the request of President Katsav, I have instructed our 
     Foreign Affairs Ministry to take all possible measures to 
     help win the release of the Israeli servicemen kidnapped by 
     Hizbullah.
       Our country also recognizes the right of the Palestinian 
     people to an independent state of their own. Yet we believe 
     that his nation can only come into being as a result of 
     negotiations.
       Your previous answer would likely come as a surprise to 
     many of our readers. The extent of your country's 
     relationship with Israel, its support for Israel, its 
     commitment to the peace process, these things are largely 
     unknown. Why do you suppose that is? Do you think it may have 
     something to do with the troubled history of our people?
       Well, you are probably in a better position to answer that 
     than I am.
       Another point to make regards our recent decision, as 
     president of the United Nations Security Council. Our 
     delegation did not support the resolution, subsequently 
     vetoed by the United States, which would have mandated an 
     international ``peacekeeping'' force for deployment in 
     Palestinian areas. We did not believe such a step was wise or 
     helpful.
       To the contrary. Recent events have only reinforced the 
     fact that peace can only be achieved by the parties 
     themselves. Solutions cannot be imposed upon them. But 
     Ukraine also recognizes and supports the need to give great 
     weight to the positions expressed by the international 
     community.
       After independence, the priority for Ukraine was to 
     consolidate its authority and international recognition and 
     obtain the attributes of statehood. Generally we succeeded. 
     Most important in our view was developing good working 
     relations with the United States and the European Union. This 
     took more effort than that required to establish relations 
     with our eastern neighbors since we have lived and worked 
     with them for centuries. This wasn't the case with Western 
     countries.
       This year marks the 60th anniversary of Nazi invasion of 
     Ukraine, then part of the Soviet Union, and the destruction 
     of nearly one million Ukrainian Jews. More than 100,000 of 
     those Jews were murdered not five miles from here at a place 
     called Babi Yar. As this awful date approaches what 
     commemorative events are planned in Ukraine?
       Yes, Kiev is the sight of one of the most tragic crimes in 
     the whole history of man. Compounding the enormity of the 
     crime was an attempt on the part of the Soviet authorities 
     who ruled Ukraine until our independence to conceal what 
     really happened here. Early last year, I authorized the 
     establishment of the ``Days of Memory of the Victims of Babi 
     Yar for the year 2001.''
       For the 60th anniversary of the tragedy we will be 
     dedicating an edition of The Holocaust Encyclopedia, a book 
     of memories and an album. Under the same perspective the 
     opening performances for the plays of the leading theaters of 
     the country, and the series of TV and radio programs are in 
     their final preparations. We will be publishing speeches of 
     famous writers, cultural and art workers, scientists, and war 
     veterans.
       I would like to repeat one more time: We consider it a 
     sacred obligation to respect the memory of the Jewish victims 
     who perished.
       Economic development is key to Ukraine's admission to the 
     European Union. However, as you have mentioned, your country 
     is not yet able to attract the amount of foreign investment 
     you say you need. What industries or specific projects are 
     you trying to promote as significant sources of Western 
     capital and/or management? Perhaps, more importantly from the 
     investors' point of view, what kinds of protections can you 
     offer them? What guarantees can you provide regarding legal 
     procedures? What about nationalizations? How can an investor 
     be sure the economic landscape can't or won't change 
     radically?
       While not as fast as we would like our economy is still 
     growing. Our high GDP and industrial production growth rates 
     in the last year and in the first months of this year should 
     reassure everyone. They have been very impressive, 
     particularly when contrasted with the Western slowdown.
       Increasing foreign investment is critical to our 
     development plans. Our estimates are for investment inflows 
     of at least $30 billion.
       To help facilitate this necessary migration of capital, 
     Ukraine is implementing the largest-ever privatization 
     processes in the spheres of power, engineering, 
     communications, and agriculture. this gives our international 
     partners, including those from Israel, wonderful and exciting 
     opportunities. I will dare say that Ukraine is one of the 
     most exciting and opportunity-rich markets on earth.
       We have developed special economic zones of priority 
     development with reduced regulatory and tax regimens. The 
     total area of these zones makes up more that 10 percent of 
     our country's territory. Here, investors are granted special 
     tax advantages, including discounts for value added tax, 
     income duties, and other levies. These zones already host 
     more than 400 projects financed by foreign investors. But 
     this is just the beginning.
       Opportunities extend to woodworking, pulp and paper, 
     engineering, metalworking, fuels and chemicals, oil and gas, 
     transportation, metallurgy; construction, shipbuilding; the 
     list is quite literally endless. but having said all this, 
     there is one area that calls for special attention and that 
     is agriculture. Owing to the intensive market reforms, almost 
     all our collective and Soviet farms have been restructured 
     into private market businesses.
       Our national tax burden has been dramatically reduced to 
     the point where it is now roughly one-fifth of the tax burden 
     found in an OECD country. If these are not competitive 
     advantages, then I don't know what are.
       As for your question about nationalization, let me say that 
     foreign investors in Ukraine are as well protected here as 
     anywhere in Eastern Europe. We have binding bilateral 
     agreements to this effect with more than 50 countries, 
     including Israel. Our national legislature includes 
     guarantees on the inviolability of rights and parity 
     conditions of national and foreign investors. In particular, 
     even if some changes are introduced into the present 
     legislation in the course of 10 years, guarantees that were 
     in effect before will be used upon request of the foreign 
     investor. Foreign capital in Ukraine is not subject to 
     nationalization. Furthermore, foreign investors actually have 
     the right to obtain compensation from the state in the event 
     state actions result in financial losses.

[[Page E943]]

       For media companies like ours that may consider entering 
     your market, what assurances can you provide regarding press 
     freedom in Ukraine?
       The economic advantage I described before are as applicable 
     to foreign media investors as they are to foreign 
     construction engineers.
       Today we have more than 10,000 periodicals of all shapes, 
     sizes, and opinions published in Ukraine. Our constitution 
     elevates ideological diversity, forbids censorship, and 
     guarantees free speech and association rights to every 
     citizen.
       But you must remember, we are a new country and a new 
     democracy. This actually means we need more help than other, 
     more developed democracies.
       When we are talking about press freedom, it is critical to 
     remember that independent publications belong to people and/
     or companies, some of whom express themselves through 
     clannish, corporate, or private interests and ambitions, 
     which doesn't necessarily benefit anyone other than 
     themselves.
       The President's Decree states that a newspaper can only be 
     closed by the person who owns it, founded it, or if our 
     judicial system deems it has broken the law. In other words, 
     in our country, just like yours, we do have laws and we 
     demand that all citizens, private and corporate, adhere to 
     them. Any person or company who obeys the law and pays his 
     taxes has nothing to worry about.

     

                          ____________________