[Congressional Record Volume 147, Number 83 (Thursday, June 14, 2001)]
[Extensions of Remarks]
[Page E1105]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 H. CON. RES. REGARDING OIL AND GAS PIPELINE ROUTES THROUGH THE SOUTH 
                                CAUCASUS

                                 ______
                                 

                          HON. JOSEPH CROWLEY

                              of new york

                    in the house of representatives

                        Thursday, June 14, 2001

  Mr. CROWLEY. Mr. Speaker, I am pleased to join my colleagues, 
Congressman Joseph Knollenberg, Congressman Frank Pallone, and 
Congressman John Sweeney, in offering this House Concurrent Resolution. 
This resolution seeks to ensure a just and equitable regional 
arrangement that will strengthen political, economic and security ties 
among all the nations of the South Caucasus.
  Mr. Speaker, I am greatly concerned by the National Energy Policy 
Development (NEPD) (Group recommendation to support the Baku-Ceyhan 
(SAY-han) pipeline. Along with my colleagues, Mr. Knollenbert, Mr. 
Pallone and Mr. Sweeney, I will be sending a letter to the President 
urging him to reexamine the NEPD Group recommendations regarding the 
Caucasus. I am also asking that he review all current and future oil 
and gas pipeline routes to ensure that all countries of the South 
Caucasus are included.
  The proposed Baku-Ceyhan pipeline route originating in the 
Azerbaijani capital of Baku and terminating at the Turkish port of 
Ceyhan via Georgia, explicitly bypasses Armenia at the insistence of 
Azerbaijan. The demands by Azerbaijan to bypass Armenia come despite 
the knowledge that a trans-Armenia route is the most reliable, direct 
and cost-effective route, and certainly one of the most tangible 
actions in support of regional integration and cooperation.
  Armenia's exclusion from regional economic and commercial 
undertakings in the South Caucasus hinders U.S. policy goals of 
promoting regional stability based upon the development of strong 
political, economic and security ties among all countries of the 
Caucasus and the United States. Exclusion of one country in regional 
projects only fosters instability.
  Armenia must be included in regional and trans-regional economic 
plans and projects. Only then can stability in the Caucasus be 
fostered. Encouragement of open market economies, increased trade and 
international private investment will lead to regional prosperity for 
all the countries involved. No one country should be excluded. 
Moreover, it simply does not make sense to choose a far more costly 
option that excludes Armenia, because of political considerations that 
do not benefit either the countries of the region nor the U.S. The 
proposed Baku-Ceyhan pipeline is estimated to cost more than $2.7 
billion. A pipeline that includes Armenia, a route that is more direct 
would reduce the pipeline costs by a minimum of $6 million. That is a 
significant savings. That is a cost savings not only for the region, 
but for U.S. taxpayers who are helping to fund planning and 
implementation of the South Caucasus pipeline projects.
  Finally, I should note that Armenia has been a strong ally of the 
U.S. in the region. With a well-educated and highly skilled population, 
it is a country moving towards democracy and an open economy. We simply 
cannot afford to alienate a proven friend and ally in the region.
  In closing, I want to urge the President to give additional thought 
to the proposed Baku-Ceyhan pipeline and to have the foresight to 
include Armenia in that project, both for the good of the region, and 
for the good of U.S. policy in the region.

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