[Federal Register Volume 63, Number 88 (Thursday, May 7, 1998)]
[Notices]
[Pages 25264-25265]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-12158]
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DEPARTMENT OF STATE
Office of the Secretary
[Public Notice 2799]
Determination With Respect to the Assistance Program for Ukraine
Pursuant to the authority vested in me by subsection (k) under the
heading ``Assistance for the New Independent States of the former
Soviet Union'' in Title II of the foreign Operations, Export Financing,
and Related Programs Appropriations Act, 1998 (Pub. L. 105-118), I
hereby determine and certify that the Government of Ukraine has made
significant progress toward resolving complaints made by United States
investors to the United States Embassy prior to April 30, 1997.
This determination shall be provided to the Congress and published
in the Federal Register.
Dated: April 28, 1998.
Madeline Albright,
Secretary of State.
Memorandum of Justification Regarding Certification Under Title II
of the Foreign Operations, Export Financing, and Related Programs
Appropriations Act, 1998 (Pub. L. 105-118)
In reviewing complaints made by twelve U.S. investors or businesses
to the United States Embassy in Kiev prior to April 30, 1997,
concerning specific problems affecting their operations in Ukraine, the
Secretary of State has found that the Government of Ukraine has made
significant progress toward resolving those complaints. Our review of
these cases found resolution or significant progress towards resolution
in seven of the twelve cases. This
[[Page 25265]]
finding will allow the Administration to obligate certain funds for
assistance to Ukraine which until now had been withheld from obligation
under Title II of Pub. L. 105-118, the Foreign Operations, Export
Financing, and Related Programs Appropriations Act, 1998.
Ukraine has demonstrated its commitment to strategic partnership
with the U.S. and integration into the West. Recent Ukrainian actions
on non-proliferation have built on a record of responsible conduct in
the security and foreign policy issues that merit continued U.S.
support.
The Administration remains seriously concerned, however, about the
investment climate and prospects for economic reform in Ukraine.
Despite progress on specific complaints by certain U.S. investors, some
complaints have not been resolved, and new cases have arisen. In
addition, we have seen no evidence of improvement in Ukraine's
investment climate and only limited progress toward economic reform.
Because a large share of U.S. assistance to Ukraine is provided to
support economic reform, and because improvement of Ukraine's
investment climate is critical to achieving sustainable economic
growth, lack of progress in these areas raises concerns about the
usefulness of U.S. assistance to the Government of Ukraine in these
sectors.
After reviewing the status of economic reform in Ukraine, we have
concluded that assistance currently allocated to support the
implementation of specific reforms by the Government of Ukraine would
not be used effectively in the absence of concrete progress on economic
reform. This includes funds originally intended to provide technical
assistance to the Government of Ukraine in such areas as fiscal and
budgetary reform, bankruptcy reform, energy sector reform, and the
creation of a private agricultural sector. We are therefore withholding
these funds from obligation and will reprogram them in a few months to
more productive uses within Ukraine unless the Government of Ukraine
implements the necessary reforms in these sectors and takes additional
steps to resolve outstanding U.S. business cases in Ukraine.
We will continue to monitor progress in Ukraine on reform and in
the investment climate, including treatment of U.S. investors in
Ukraine, with the goal of ensuring that all U.S. assistance is used
effectively to encourage and promote the reforms needed to stimulate
sustainable economic growth. We will also continue to monitor the
complaints made by U.S. investors which are subject to the
certification requirement, as well as other cases which have arisen, to
ensure that progress is sustained.
[FR Doc. 96-12158 Filed 5-6-98; 8:45 am]
BILLING CODE 4710-10-M
