Recent Developments in the Peace Process

Although both sides remain far apart, there have been several positive steps in recent months:

- The fifth anniversary of the cease-fire took place in May 1999. This represents a significant achievement. The cease-fire has largely held intact despite the lack of any formal peacekeeping structure or international presence.

- President Aliyev and President Kocharian met five times in recent months, including a session at the OSCE summit in Istanbul in November 1999, in addition to numerous phone conversations between the two. Also, the country’s Foreign Ministers and Defense Ministers have had consultations.

- The Istanbul OSCE summit commended the efforts of both Presidents: “We applaud in particular the intensified dialogue between the Presidents of Armenia and Azerbaijan, whose regular contacts have created opportunities to dynamize the process of finding a lasting and comprehensive solution to the problem. We firmly support this dialogue and encourage its continuation, with the hope of resuming negotiations within the OSCE Minsk Group”.

- President Aliyev invited President Kocharian to Azerbaijan to attend a multilateral summit, hosted by his Government in Baku in September 1998. The meeting of 36 European and Asian governments seeking to restore the ancient Silk Road route.

- U.S. Vice President Albert Gore and Secretary of State Madeleine Albright have been instrumental in furthering the bilateral negotiations between Presidents Aliyev and Kocharian.

One important aspect of the conflict that is of particular concern to the international community is the issue of ethnic groups and the plight of national minorities. Azerbaijan is a diverse multi-ethnic nation with significant minority populations, including Russians, Armenians, Lesghins, Turks, Georgians, Ukrainians, Jews, Kurds, Udins and others. In Azerbaijan, citizenship is based not on ethnicity but on the basis of geographic borders. By contrast, Armenia is a largely mono-ethnic state seeking to unite all Armenians -- to the exclusion of other ethnic groups - within a single country, irrespective of internationally-recognized borders and national sovereignty.

Congress Imposes Section 907

Prior to the 1994 cease-fire agreement, Congress imposed Section 907 in response to Azerbaijan’s refusal to conduct commercial transactions with Armenia, which had committed military aggression against Azerbaijan. The Armenian community in the United States was vocal and relentless in lobbying for these sanctions. Unfortunately, Azerbaijan’s position was overshadowed; at the time Section 907 was enacted, Azerbaijan did not even have diplomatic representation in Washington.

Section 907 is intended to punish Azerbaijan for refusing normal commerce with Armenia. In reality, a blockade does not exist. Instead, there is a complete breakdown of transportation, commercial and communications infrastructure in both Nagorno-Karabakh and surrounding regions. Roads, rail lines and pipelines have been destroyed. Areas have been heavily mined by Armenian troops. The Azerbaijani Government has no access to Nagorno-Karabakh and the rest of Azerbaijani territories under Armenian occupation.

There exists no Azerbaijani blockade against neighboring Armenian territory. Armenia shares national borders with Georgia, Turkey and Iran, in addition to its border with Azerbaijan. Goods regularly flow through these borders as well as from Russia. Azerbaijan has never attempted to restrict trade between Armenia and its neighbors. It is true that Azerbaijan and Armenia have ceased all commercial exchanges, but this is to be expected given the fact that the two countries remain at war. Armenia totally cut off the only railroad and all other links between Baku and Nakhichevan Autonomous Republic, a non-contiguous part of Azerbaijan.

Section 907 also requires an end to “offensive uses of force” before the sanctions can be lifted. Again, the U.S. law is at odds with the reality. The fact that internationally- brokered cease-fire has been in place for four years, means there have not been any such uses of force by either side.

In short, the two conditions cited as the policy basis for the Section 907 sanctions -- a “blockade” and “offensive uses of force” -- do not exist. Yet, Section 907 sanctions remain in place.

Recent Congressional Action on Section 907

In recent years, Congress has attempted to modify Section 907 several times. These include allowing for direct humanitarian assistance, democracy-building programs and efforts to establish a market economy. Armenian lobbying groups have opposed most of these efforts. However, in FY 1997, Congress approved language making exemptions for the Nunn-Lugar program to prevent the spread of weapons of mass destruction, as well as to allow for the use of state facilities and doctors to provide humanitarian assistance.

In FY 1998, Congress approved language as part of the Foreign Operations Appropriations Bill to provide additional exceptions to Section 907. These exceptions, proposed by Senators Byrd and Leahy, included “democracy-building” programs, as well as activities of the Export-Import Bank, the Overseas Private Investment Corporation (OPIC), the Trade and Development Agency (TDA) and the Foreign Commercial Service. The Byrd-Leahy Amendment was intended to stimulate U.S. business activity in Azerbaijan.

Congress during consideration of the FY 1999 Foreign Operations Appropriations bill retained all these exceptions and added a blanket exception for all humanitarian assistance. This action by Congress came after the full House Appropriations Committee voted 30-19 to repeal Section 907. This repeal was later overturned by a full House vote of 231-182.

With the convening of the 106th Congress, Senator Sam Brownback introduced his Silk Road legislation, which was originally approved in 1998 by the Senate Foreign Relations Committee. The Brownback Silk Road legislation, which provided for a Presidential “national interest” waiver for Section 907, was again approved this year by the Senate Foreign Relations Committee and offered as an amendment to the FY 2000 Foreign Operations Appropriations Bill. However, during debate on the Senate floor, the “national interest” waiver authority for Section 907 was stricken from the amendment on a 53-47 vote.

During other consideration of the FY 2000 Foreign Operations Appropriation Bill, all of the previous exceptions to Section 907 were again approved. The House of Representatives approved some harmful report language, but this language was not adopted by the House-Senate Conference committee.

Now Is the Time for Washington to Act

Like the Bush Administration, the Clinton Administration strongly opposes Section 907, and has testified in favor of repeal of these sanctions on several occasions. The Administration believes that the sanctions hinder the ability of the United States to settle the Armenia-Azerbaijan conflict.

This year, as in the previous years, President Clinton in his determination submitted to the Congress again acknowledged that Armenia was in violation of a congressional provision that denies American assistance to any CIS state that violates the territorial integrity of another CIS state. “The actions taken by the Government of Armenia in the context of the conflict over Nagorno-Karabakh are inconsistent with the territorial integrity and national sovereignty principles of the Helsinki Final Act. Armenia supports Nagorno-Karabakh separatists in Azerbaijan both militarily and financially. Nagorno-Karabakh forces, assisted by units of the Armenian armed forces, currently occupy the Nagorno-Karabakh region and surrounding areas in Azerbaijan,” President Clinton said.

This year, the Congress can promote America’s foreign policy interests in Azerbaijan and the Caspian region by voting to repeal Section 907, or by giving the President the authority to waive it in the “national interest”. If Congress does not repeal Section 907 or provide for Presidential waiver this year, the Clinton Administration should use its statutory authority to lift the sanctions this year. Under the Freedom Support Act, the President can determine that Azerbaijan has taken demonstrable steps towards a peaceful settlement in the conflict, and can issue what amounts to a presidential waiver of Section 907. This action would send a message that the United States is taking an even-handed approach. By repealing Section 907, Congress can protect and promote America’s foreign policy interests in Azerbaijan and the Caspian region.