U.S. Senate panel blocks US funding for Turk-Azeri railroad

Backing a campaign by U.S. Armenian groups, the Senate's Banking Committee has blocked any funding by the U.S. Export-Import Bank for a proposed railroad project that would connect Turkey with Azerbaijan through Georgia and would bypass Armenian territory.

The committee unanimously approved the measure introduced by Democratic Senator Robert Menendez of New Jersey in a Thursday vote.

According to the measure, the Export-Import Bank "shall not guarantee, insure or extend (or participate in the extension of) credit in connection with the export of any good or service relating to the development or promotion of any railway connection or railway-related connection that does not traverse or connect with Armenia, and does traverse or connect Baku, Azerbaijan, Tbilisi, Georgia, and Kars, Turkey."

The provision is now part of the Senate Export-Import Bank Reauthorization Bill, also adopted unanimously by the committee, paving the way for full Senate consideration of the legislation. The bill is expected to be approved at the Senate floor.

Opposing the Turkey-Georgia-Azerbaijan railroad project, the Armenian National Committee of America (ANCA), a key U.S. Armenian group, welcomed the Senate panel's move.

"We would like to thank Senator Menendez ... and all members of the Senate Banking Committee for ensuring that U.S. taxpayer funds are not wasted in the construction of an ill-advised railway project, initiated by Turkey and Azerbaijan solely to exclude Armenia," said ANCA Executive Director Aram Hamparian.

"With this amendment, we are sending a simple message -- that we believe that the United States should support an integrated and inclusive approach to economic and regional development in the Caucasus region," explained Menendez.

"There is already a railway that connects these countries and passes through Armenia which could be used to build a trans-Caucasus railroad. Why would we spend additional funds to build a new railroad link that goes around Armenia?" Menendez asked, according to an ANCA statement.

It was not immediately clear how a lack of U.S. loans would affect the fate of the Kars-Tbilisi-Baku railway plan.

The Senate Banking Committee's move came at a time of an ongoing clash between President George W. Bush's administration and the Armenian groups and their supporters at the Senate over the appointment of a new American ambassador to Armenia.

Earlier this month, Menendez put a hold on the nomination of Bush's pick for ambassador to Yerevan, who has refused to recognize the "Armenian genocide," in protest of what he called the administration's policy to deny the genocide.

Menendez's move to block Richard Hoagland came after the Senate Foreign Relations Committee on Sept. 7 voted 13-5 to send the ambassador nominee's case to the full Senate for a floor vote.

Although U.S. Armenian groups were disappointed by the committee's move to confirm the "genocide denying" Hoagland, they still vowed to continue with efforts to block him.

Under U.S. law, all senior government officials, including ambassadors, must win the Senate's approval, and any senator can indefinitely block nominations. However, such moves are rare because they put such dissenting senators under intense pressure. Until Menendez lifts his hold, the Senate cannot vote on Hoagland's nomination.

Nevertheless, under U.S. law, the president also has the power to appoint senior officials for two years by bypassing the Senate when Congress is in recess, and analysts said Bush may use this power for Hoagland. Congress is expected to go for recess between October and December to prepare for congressional midterm elections in early November.

Bush in May fired the previous envoy to Armenia, John Evans, after the latter classified Armenian killings in the Ottoman Empire in the early last century as genocide, in violation of the official U.S. policy.

Armenian groups have strongly protested the decision and launched a campaign to block Hoagland, whom Bush nominated to replace Evans.

/Turkish Daily News/