    [Public Papers of the Presidents of the United States: William J. Clinton (1997, Book II)]
    [August 1, 1997]
    [Pages 1038-1039]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Joint Statement on Azerbaijan-United States Relations
    August 1, 1997

        During their August 1, 1997 meeting in Washington, Presidents
    Clinton and Aliyev agreed on the importance of expanding the partnership
    between the United States and the Republic of Azerbaijan through
    strengthening bilateral cooperation in the political, security, economic
    and commercial spheres. President Clinton reaffirmed U.S. support for
    the independence, sovereignty, territorial integrity, and democratic
    development of Azerbaijan, noting that close U.S.-Azerbaijan relations
    are important in promoting regional peace, stability and prosperity.
        The two Presidents expressed strong support for an early and
    peaceful resolution to the Nagorno-Karabakh conflict. President Clinton
    made clear that the United States is committed, together with Russia and
    France, to work jointly through the OSCE Minsk Group for a just and
    lasting peace to this conflict. President Aliyev endorsed the recent
    proposal of the Co-Chairs of the OSCE Minsk Group as the basis for
    intensified negotiations to achieve a peace agreement this year. The two
    Presidents agreed that the settlement should be based on the three OSCE
    Lisbon principles.
        Both Presidents noted the positive contribution made by U.S.
    humanitarian assistance to Azerbaijan, particularly to refugees,
    internally displaced persons (IDPs), and other needy

    [[Page 1039]]

    groups. They agreed that Section 907 of the Freedom Support Act limits
    potential cooperation between the United States and Azerbaijan.
    President Clinton reiterated the Administration's strong support for
    repeal of Section 907.
        Azerbaijan is at a critical juncture in its development as a
    democratic and market-oriented state. President Clinton praised
    President Aliyev's success in strengthening Azerbaijan as a state,
    implementing economic reform and spurring growth in recent years.
    Azerbaijan's deepening commitment to an economic reform program,
    including recent decisions to move forward with broader and faster
    privatization in cooperation with the World Bank and IMF, is central to
    its successful transition to a market-based economy. The two Presidents
    agreed that democracy, economic reform and the observance of human
    rights play an essential role in ensuring Azerbaijan's continued
    stability. President Clinton also welcomed President Aliyev's commitment
    to strengthen market freedom, rule of law and political pluralism in
    Azerbaijan, including the holding of free and fair elections.
        Both Presidents support expanded economic and commercial relations,
    including greater bilateral trade and investment. The two Presidents
    noted the importance of rapid development of Caspian energy resources
    and highlighted the extensive participation of U.S. companies in the
    development and transport of Azerbaijan's oil and gas resources. This
    has already contributed to a thriving bilateral commercial relationship.
    The Presidents welcomed the establishment of an official dialogue on
    energy policy and commercial issues. They also agreed on the vital
    importance of the Eurasian transport corridor to the economic future of
    Azerbaijan and the entire region. The two Presidents welcomed the
    signing of the U.S.-Azerbaijani Bilateral Investment Treaty and the U.S.
    Export-Import Bank Project Incentive Agreement. The United States
    encourages Azerbaijan's integration into the global economy, including
    early completion of its application for membership in the World Trade
    Organization on commercial terms generally applied to newly acceding
    members.
        The United States recognizes the challenges facing Azerbaijan in
    assuring its national security and strongly supports Azerbaijan's active
    integration into newly emerging European security structures, including
    NATO's Partnership for Peace and the Euro-Atlantic Partnership Council.
    The Presidents expressed satisfaction with the entry into force on May
    15, 1997 of the CFE Flank Document and agreed on the importance of the
    U.S.-Azerbaijani Joint Statement released in that connection. They also
    welcomed the adoption of the CFE Basic Elements decision in Vienna July
    23, 1997 and agreed that the adaptation of the CFE Treaty should enhance
    the security of each state party.
        The two Presidents also discussed security threats posed by
    international terrorism, narcotics trafficking, international criminal
    activity, and proliferation of weapons of mass destruction. They agreed
    to explore the expansion of security cooperation, including through the
    bilateral security dialogue inaugurated in March 1997.
        Both Presidents underlined their support for increased
    parliamentary, cultural, scientific and educational exchanges, as well
    as contacts between individual citizens to enhance relations between the
    United States and Azerbaijan.

    Note: An original was not available for verification of the content of
    this joint statement.