WASHINGTON, D.C. – U.S. Representative Adam Schiff today expressed disappointment at the Administration's proposed budget cut in aid to Armenia for the 2004 fiscal year. The FY04 proposal of $49.5 million in assistance to Armenia is a significant drop from the previous year's request of $70 million. Congress appropriated $90.2 million to Armenia in FY02.
"The large cut in aid to Armenia is especially troubling in light of the continuing blockade by Azerbaijan and Turkey, which by World Bank estimates is costing Armenia between $570 and $722 million annually," said Rep. Schiff.
According to the World Bank, based on Armenia's 2000 Gross Domestic Product (GDP) of $1.9 billion, the dual blockades are costing Armenia between 30 to 38% of its GDP and blocking up to 50% of Armenia's potential exports.
The Administration's request for Azerbaijan for FY 04 is $41.5 million, a slight decrease from the previous year's request of $46 million. There is also a decrease in the Administration's request for military assistance to Armenia and Azerbaijan as compared to its FY 03 request. The Administration has maintained parity in Foreign Military Financing (FMF) and International Military Education and Training (IMET) for both countries. The FMF request for FY04 is $2.5 million down from $3 million in FY03, and $900,000 for IMET, an increase of $250,000 from FY03.
"As in the past years, I plan to urge my colleagues on the Appropriations Committee to restore aid to a level that truly mirrors America's commitment to Armenia, an ally in our war on terrorism."
Members of both the House and Senate are currently working in conference to finalize the FY 03 foreign aid package, which will be part of an Omnibus Appropriations bill expected to be taken up in the next few weeks. The Senate Foreign Operations Subcommittee approved a $90 million earmark for Armenia, while the House called for $84.3 million in assistance.
Representative Schiff recently urged his colleagues on the Foreign Operations conference committee to approve the Senate level of $90 million for Armenia.