U.S. Secretary of State to raise investor disputes, technology issues
g.'
– President Leonid Kuchma
'We very much have kind of a chicken-and-egg problem in that they are in serious
economic problems because they're not able to attract investment, and one of the reasons they're not is that they haven't been able to undertake all their economic reforms.'
– U.S. Secretary of State Madeleine Albright
WASHINGTON (AP and Reuters) – Two Republican congressmen who exercise major influence on the U.S. government's purse strings warned Ukraine Wednesday it faces cutbacks in aid if it doesn't do a better job of protecting Americans from corruption and criminals.
'Corruption and the hardship that … some of the people in Ukraine give to our American business people gives us heartburn,' Rep. Sonny Callahan told Secretary of State Madeleine Albright as she testified before his House Appropriations subcommittee on the Clinton administration's $14.1 billion request for foreign operations. Callahan was joined in his criticism by Rep. Bob Livingston, chairman of the Appropriations Committee, who said, 'We are very much concerned about the lack of security for investors in Ukraine and for the security of Americans – all Americans.'
Albright was to fly to Kyiv on Thursday, the first stop on a five-day swing through Europe. She said she would carry 'a strong message of friendship but also a warning.' She noted that she was required to certify later this month that Ukraine had made significant progress toward resolving complaints by U.S. investors, or else U.S. aid would be cut by 50 percent. The State Department has asked Congress for $223.5 million in aid to Ukraine next year. 'I hope that I will be able to indicate to this body that progress has been made,' Albright told the subcommittee. But she added that it would be 'premature to speculate' on what decision she would make on certification. In reply to questions from Rep. Ron Packard, a California Republican, she said the administration was 'very concerned' about the investment disputes, which center on allegations of corruption and unfair treatment by Ukrainian authorities.
The problem has been raised at previous meetings by U.S. Vice President Al Gore and other officials with Ukrainian leaders, including President Leonid Kuchma. 'President Kuchma assured Vice President Gore that the Ukrainian government would act in a forthright manner to seek the resolution of these disputes, and we're determined to do everything to get the matter settled,' Albright said. Albright said Washington was concerned that despite some progress on privatization, the pace of economic reform in Ukraine was still too slow. 'We very much have kind of a chicken-and-egg problem in that they are in serious economic problems because they're not able to attract investment, and one of the reasons they're not is that they haven't been able to undertake all their economic reforms,' she said.
President Kuchma echoed Albright's sentiments during a visit to Kriviy Rih Thursday, and said that economic issues are central to ties with Washington and called for more American investment in Ukraine.
Economic issues are 'the question of questions' in U.S.-Ukrainian relations, the Interfax news news agency quoted Kuchma as saying.
Reversing a formula prescribed regularly to his struggling nation by American officials, Kuchma said more foreign investment is needed to spark slow-moving economic reforms. 'Reforms in Ukraine will get going when we work together, when investments get going,' Interfax quoted him as saying. Several U.S. officials and economists have been in Ukraine recently to push the structural reforms they say are needed to bring investment and economic improvement. Kuchma and Albright plan to discuss U.S. opposition to Ukraine's participation in the construction of a nuclear power plant in Iran, as well as other economic and non-proliferation issues, and are expected to sign agreements in these areas.
Albright's trip to Ukraine will launch a six-day tour also taking her to Italy, Germany, France, Britain and Canada.
