[Congressional Record Volume 147, Number 105 (Wednesday, July 25, 2001)]
[Extensions of Remarks]
[Pages E1424-E1425]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS 
                        APPROPRIATIONS ACT, 2002

                                 ______
                                 

                               speech of

                     HON. LOUISE McINTOSH SLAUGHTER

                              of new york

                    in the house of representatives

                         Tuesday, July 24, 2001

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill (H.R. 2506) making 
     appropriations for foreign operations, export financing and 
     related programs for the fiscal year ending September 30, 
     2002, and for other purposes:

  Ms. SLAUGHTER. Mr. Chairman, had the Kaptur amendment been made in 
order, I would have supported it. The Kaptur amendment would have 
required that no less than $125 million of the bill's funds be provided 
to Ukraine. The bill caps funding to Ukraine at $125 million, 90 
percent of which goes to humanitarian aid and non-governmental 
assistance programs. This represents a $44 million reduction in funding 
from last year. While I support measures to ensure funding for Ukraine, 
I also have serious concerns about recent events in Ukraine that have 
impeded steps toward a fully democratic society.
  I have been a strong supporter of Ukraine throughout my tenure in 
Congress. In past years, I have taken a leading role in supporting 
increased funding for Ukraine. These efforts, along with those of my 
colleagues, have made Ukraine the third-largest recipient of U.S. aid. 
But, evidence of political corruption, suppression of the media and 
instability in the Ukrainian government have called this aid into 
question.
  In April, the Communist-dominated Ukrainian parliament voted to 
dismiss Prime Minister Viktor Yushchenko and his government. The ouster 
of Prime Minister Yushchenko and his cabinet, widely viewed as the most 
successful govenmnent since Ukraine gained independence in 1991, is 
likely to slow down reforms at this most crucial time. This vote comes 
in the midst of the ongoing political crisis sparked by revelations on 
secretly recorded tapes implicating the involvement of President Leonid 
Kuchma and high government officials in the case of murdered journalist 
Heorhiy Gongadze. Most recently, another journalist, Ihor Oleksandrov, 
who sought to expose corruption and organized crime was brutally 
murdered by four men with clubs.
  The State Department Annual Human Rights Country Report on Ukraine 
cites a mixed human rights record and notes the failure to curb 
institutional corruption and abuse in the Ukrainian government. One 
starling example of government corruption that has come to my attention 
is the case of U.S. investment fund, New Century Holdings. This 
investment company has been repeatedly thwarted in its efforts to 
develop a hotel it owns along with the City of Kiev. Despite owning a 
controlling interest in the hotel, New Century Holdings has been 
prevented access to the hotel, as local police have taken over the 
building for themselves. New Century Holdings has appealed to the Mayor 
and other local officials to no avail, and the Ukrainian government has 
been unable or unwilling to help. Meanwhile,

[[Page E1425]]

the hotel remains undeveloped and the company's investment in Ukraine 
remains unrealized.
  I value the strong relationship between the United States and 
Ukraine. However, Ukraine will never be a full partner of the United 
States, unless it fully embraces democracy and human rights. Ukraine 
has made significant progress in the ten years since it became 
independent, but pervasive corruption, lack of media freedoms, and the 
conduct of the investigation of the Gongadze case call into question 
Ukraine's commitment to being a fully democratic nation and hold 
Ukraine back from reaching its immense potential.
  It is my hope that the debate on this amendment will send a positive 
message to the government of Ukraine, that the U.S. Congress will not 
simply rubber stamp funding requests for the Ukraine, without also 
considering the serious issues involved in Ukraine's democratic 
development. I am prepared to continue to work with Ukraine to 
determine how Congress can best assist them in staying on the road 
toward democracy and a free-market economy.
  With this in mind, this fall the Congress-Rada Parliamentary Exchange 
Group will convene for the first time here in Washington. I urge all 
Members concerned about the evident setbacks in Ukraine, to take 
advantage of this opportunity to meet with our Ukrainian counterparts 
to share views on how both our countries can work to continue Ukraine 
on its path toward a fully democratic society.

                          ____________________