[Weekly Compilation of Presidential Documents Volume 33, Number 31 (Monday, August 4, 1997)]
[Pages 1170-1171]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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 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

[[Page 1171]]

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.