[Congressional Record Volume 147, Number 105 (Wednesday, July 25, 2001)]
[Extensions of Remarks]
[Pages E1430-E1431]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       THE REPUBLIC OF KAZAKSTAN

                                 ______
                                 

                          HON. EDOLPHUS TOWNS

                              of new york

                    in the house of representatives

                        Wednesday, July 25, 2001

  Mr. TOWNS. Mr. Speaker, I would like to draw the attention of my 
colleagues to the issue of strengthening trade relations with one of 
the most promising countries of the post-Soviet era--the Republic of 
Kazakhstan. Kazakhstan has long been seen as a crossroads between East 
and West--a meeting place not only of continents, but of cultures, 
values, ideas, resources and trade.
  Kazakhstan today has the best economic prospects in the region. It 
has highest rate of economic growth, especially throughout the current 
year. Already well-known for its abundant natural resources, the recent 
discovery of major hydrocarbon deposits in the offshore

[[Page E1431]]

East Kashagan field on the Caspian Sea is expected to put Kazakhstan 
among ten leading world oil exporters in the first quarter of this 
century. Kazakhstan is also rich in natural gas, and has vast gold, 
uranium, ferrous, non-ferrous and rare earth metal deposits. In 
addition, Kazakhstan has a highly developed agricultural sector, noted 
especially for grain and meat production.
  The potential for cooperation and progress is great, and the time for 
action now. We must break away from the outdated constraints of a past 
era and seize the opportunity to put trade ties with Kazakhstan on a 
more solid, mutually beneficial basis.
  Mr. Speaker, keeping in mind the importance of promoting and 
developing active U.S. trade relations with Kazakhstan which will not 
only open this huge market for Americans but also help to pave the way 
for true democracy in this country, I proudly cosponsored the 
legislation (H.R. 1318) that would grant permanent trade relations to 
Kazakhstan.
  I am enclosing a letter from the U.S.-Kazakhstan Business Association 
signed by U.S. companies asking for our support to strengthen bilateral 
trade relations with this country by passing H.R. 1318 and the article 
``Cheney Aims To Drill Afar and Wide'', published in ``Washington 
Times'' on July 20, 2001.

                                                   U.S.-Kazakhstan


                                         Business Association,

                                                    July 23, 2001.
     Representative Edolphus Towns,
     Rayburn House Office Building,
     Washington, DC.
       Dear Representative Towns: On behalf of the U.S.-Kazakhstan 
     Business Association, I wish to convey the Association's 
     strong support for the granting of permanent normal trade 
     relations (PNTR) to Kazakhstan. We wish to encourage early 
     approval by the Ways and Means Committee of H.R. 1318, 
     introduced by Representative Pitts, and supported by you and 
     other co-sponsors.
       Association members include major U.S. corporations that 
     have been in the forefront of Western investment in 
     Kazakhstan. They are very deliberate about their decisions to 
     enter emerging market economies and have seen the many 
     positive advantages that investment in Kazakhstan affords. As 
     energy sector revenues grow and spread through the country's 
     economy, the Association seeks to encourage diversified 
     investment in other sectors, such as agribusiness, mining, 
     petrochemicals, and telecommunications. For these investments 
     to be economic, however, it will be important for Kazakhstani 
     firms, as well as joint ventures formed with American 
     investors, to have predictable nondiscriminatory access to 
     U.S. markets. Looking ahead to Kazakhstan's eventual 
     accession to the World Trade Organization (WTO), our members 
     will be particularly interested in our government being able 
     to avail itself of all its rights under the WTO with respect 
     to Kazakhstan.
       Historical criteria that have withheld nondiscriminatory 
     access for Kazakhstan products are no longer relevant. The 
     country continues to make stepwise political and economic 
     reforms that are attracting and retaining foreign investors. 
     Kazakhstan courageously chose to de-nuclearize after 
     independence and has fully supported nuclear nonproliferation 
     objectives, dismantling bombers, missiles, and related 
     facilities. It has complied with U.S. emigration 
     requirements, and recently has taken considerable strides 
     toward creating a free-market economic system--a development 
     already recognized by the European Union. While the U.S. and 
     Kazakhstan concluded a bilateral investment treaty in 1992, 
     from its independence, Kazakhstan has demonstrated a strong 
     desire to build friendly and cooperative ties with the U.S. 
     across a broad range of relationships. The Association, 
     therefore, believes it is in the best interests of the United 
     States to approve PNTR for Kazakhstan and promote further 
     development of more normal trade and investment relations 
     between the two countries.
       Similar letters have been sent to Representative Thomas and 
     Representative Rangel of the House Ways and Means Committee, 
     the Chairman and Ranking Minority member of the House 
     International Relations Committee, and, regarding S. 168, to 
     the Chairmen and Ranking Minority Members of the Senate 
     Finance Committee and the Senate Foreign Relations Committee. 
     In addition, sponsors, co-sponsors, and each member of the 
     above committees have received courtesy copies.
       The member companies and organizations listed below support 
     the Association's position favoring PNTR for Kazakhstan and 
     the respective House and Senate bills. Should you or your 
     staff have any questions, please do not hesitate to contact 
     me at (202) 434-8791.
           Sincerely,
                                                 William C. Veale,
                                               Executive Director.

       List of Members Supporting H.R. 1318: ABB Inc.; Access 
     Industries, Inc.; ACDI/VOCA; The AES Corporation; American 
     Councils for Int'l Education; Bechtel Corporation; Chevron 
     Corporation; Citizens Network for Foreign Affairs; Columbia 
     University Caspian Project; Coudert Brothers; Exxon Mobil 
     Corporation; Deere & Company; Fluor Corporation; Halliburton 
     Company; International Tax & Investment Center; NUKEM Inc.; 
     Parker Drilling Company; Parsons Corporation (membership 
     currently being processed); Phillips Petroleum Company; 
     Texaco Inc.

                                  ____
                                  

               [From the Washington Times, July 20, 2001]

                   Cheney Aims To Drill Afar and Wide

                          (By David R. Sands)

       Debates over drilling at home have dominated the headlines, 
     but the Bush administration's energy plan also calls for some 
     aggressive prospecting in overseas markets as well.
       Kazakhstan, Russia, India and even Venezuela stand to be 
     big winners under key sections of the energy program, 
     released by a task force headed by Vice President Richard B. 
     Cheney on May 18.
       Energy needs would assume a much greater role in 
     considering whether to apply economic or other sanctions 
     against unfriendly governments.
       ``There's a lot going on, on the international side in that 
     report, and it's going to matter a lot to the entire global 
     energy market,'' said Robert E. Ebel, director of the energy 
     and national security program at the Washington-based Center 
     for Strategic and International Studies (CSIS).
       ``The path the U.S. chooses on production and consumption 
     will have a huge impact on the rest of the world,'' Mr. Ebel 
     said.
       The Bush plan calls for a major diversification of oil 
     suppliers, away from the long-standing reliance on unstable 
     or unfriendly Middle Eastern producers.
       ``Concentration of world oil production in any one region 
     of the world is a potential contributor to market 
     instability, benefiting neither oil producers nor 
     consumers,'' the report said.
       A survey released by the American Petroleum Institute (API) 
     on Wednesday could boost the Bush plan, which faces a tough 
     time in Congress.
       The oil industry trade group found that U.S. crude oil 
     imports for the first half of 2001 hit a record average of 60 
     percent of total demand, or 9.2 million barrels per day. Oil 
     imports in April accounted for 62.8 percent of total demand, 
     ``the largest (monthly) share in history,'' API said.
       Officials in the Central Asian country of Kazakhstan have 
     expressed satisfaction with the Bush administration's focus 
     on their market, where recent oil field discoveries have 
     attracted intense industry interest.
       ``The new administration has showed a very complete and 
     mutual understanding of the cooperation we hope to have in 
     the future,'' Vladimir Shkolnik, Kazahstan's vice minister 
     for energy and natural resources, said in an interview during 
     a Washington trip this spring.
       ``I get the feeling they understand very well our 
     potential,'' Mr. Shkolnik said.
       While saying private investors must lead the way, the 
     Cheney report devotes considerable time to the Kazakh market, 
     urging U.S. government agencies to ``deepen their commercial 
     dialogue'' with Kazakhstan.
       The report also endorses the proposed pipeline from Baku, 
     Azerbaijan, through Georgia to the Turkish port of Ceyhan. 
     Enthusiastically backed by the Clinton administration, the 
     Baku-Ceyhan pipeline has been resisted by Moscow, which sees 
     the project as an effort to bypass Russia.
       ``The big question has always been how to get the oil and 
     gas to market. With private companies like (British 
     Petroleum) really pushing the pipeline, it's hard to see how 
     the Bush administration could do a 180-degree turn from what 
     the Clinton people were recommending,'' Mr. Ebel said.
       To complete the bypass of both Russia and Iran, the Cheney 
     report's authors called for the State Department to push for 
     Greece and Turkey to link their gas pipeline systems, 
     allowing even easier access to European markets for Caspian 
     gas.
       But Russia is also one of several other international 
     producers that the Cheney task force recommends should be 
     encouraged. Russia has about 5 percent of the world's proven 
     oil reserves and a third of the world's natural gas, but 
     needs major Western investment and significant legal and 
     commercial reforms to exploit its potential.
       While urging continued pressure on Middle East suppliers 
     like Saudi Arabia and Kuwait to open their markets to foreign 
     investors, the Bush administration blueprint seeks suppliers 
     much farther afield.
       Despite a series of sharp political and diplomatic 
     exchanges with Venezuelan President Hugo Chavez, the United 
     States should push to conclude a bilateral investment treaty 
     with Caracas, said the administration proposal, and begin 
     talks with Brazil to boost ``energy investment flows'' with 
     both of the South American powers.
       The report also directs U.S. agencies to help India 
     ``maximize its domestic oil and gas production,'' as well. 
     One foreign policy recommendation that has taken some hits is 
     the Bush proposal to include ``energy security'' as a factor 
     when considering the usefulness of economic sanctions.
       The administration was forced to retreat in the first 
     congressional fight over such sanctions, in the face of 
     strong bipartisan support for maintaining current 
     restrictions on trade and investment with Iran and Libya.





                          ____________________