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 "UKRAINE'S FUTURE AND UNITED STATES INTERESTS"

Written Testimony of Michael Sawkiw, President
Ukrainian Congress Committee of America (UCCA)
Committee on International Relations, Subcommittee on Europe
U.S. House Of Representatives, Wash, D.C., Wed, May 12, 2004

Mr. Chairman and members of the House of Representatives Committee on
International Relations, thank you for the opportunity to comment on issues
regarding U.S. policy toward Ukraine.

The Ukrainian Congress Committee of America (UCCA), as a representative
organization of Americans of Ukrainian descent, would like to address our
community's concerns on issues regarding U.S. foreign policy towards
Ukraine, in particular during this highly visible period prior to Ukraine's
presidential elections on October 31, 2004.  The Ukrainian community in the
United States expresses its gratitude to the House International Relations
Committee for your continuous leadership and support of democratic and
economic reforms in Ukraine.  Since 1996, the United States and Ukraine have
formed a unique relationship defined as a strategic partnership between two
countries.

                                        U.S. Global Leadership

The United States of America, as the leader of the democratic world, plays a
prominent role in promoting democracy around the globe.  Such an important
role requires even greater emphasis following the tragic events of September
11, 2001, as our ultimate goal in the war against international terrorism is
the establishment of free and open societies, which guarantee human and
civic rights to all citizens.  Prior to the United States' current focus on
the Middle East and Central Asia, we were actively involved in the
democratization process in Central and East Europe.

Due to such activity and U.S. assistance and leadership, many of the Central
and East European nations have achieved great success in establishing strong
democratic governments that rely on market economies.  The recent European
Union (EU) and NATO enlargement, which admitted several new states from
the former Communist bloc, serves as a positive example of the successes
achieved in that area.  Unfortunately, not all of the Central and East
European countries have managed to progress so quickly.

The objectives of peace, stability, and democracy in Central and East Europe
are enhanced only because the United States remains committed and engaged
in a strategic partnership with Ukraine.  Should Congress stay the course,
investing in a strong and democratic Ukraine, the goal of stability in a
turbulent region will be within reach.  In the 21st century, the United
States will have no better ally in Central Europe than Ukraine, and our
engagement invested in Ukraine shall achieve historic gains.  In the words
of The Wall Street Journal:  "The U.S. and its allies have much to gain by
nudging Ukraine, one of Europe's largest countries, toward economic
viability.  For one thing, it could resist revanchist tendencies among those
Russians who would like to restore the Russian empire."

                                   Political Situation in Ukraine

Ukraine, as one of the largest and most populous European countries that
emerged as an independent state following the fall of the Soviet Union in
1991, has been marred by many problems, including an economic crisis and
high-level corruption.  Nevertheless, substantial progress was achieved in
many areas including the closure of the Chornobyl nuclear power facility;
voluntarily dismantling the world's third largest nuclear arsenal; the
emergence of an active civil society; freedom of religion; support for
national minorities; freedom of movement; and, freedom of expression.

In the subsequent decade of its renewed independence, Ukraine faced many
challenges including an economic crisis and corruption.  Nevertheless, it
has been able to recover from the initial depression and currently advances
rather steadily in its goal of European and Euro-Atlantic integration.  The
Ukrainian economy continues to grow, the government has implemented
significant changes in legislation to improve cooperation with the West,
while the investment climate continues to improve and other changes are
being made to transform Ukraine into a Western-like democracy.  Increased
economic stability in Ukraine serves as a basis for the improvement of its
democratic governance system.  However, there remain issues that Ukraine
continues to combat.

With the advent of a new generation of leaders, issue in the aforementioned
will continue to alleviate itself.  If recent events in Ukraine are
indicative of what lays ahead, the October 31, 2004 elections for president
may determine whether Ukraine becomes a Western-style democracy respectful
of its citizens' rights and allied with the West, or a former Soviet
republic re-absorbed into an authoritarian 'sphere of influence' by
Ukraine's neighbor Russia.  Thus, the strategic and economic dividends from
continued U.S. engagement with Ukraine can be virtually limitless.  In fact,
Ukraine's strategic partnership with the United States represents the key to
Ukraine's continued economic and political reform.

It is impossible to assert that problems do not exist in Ukraine.  Yet, the
former Warsaw Pact country of Poland and newly independent state of Georgia
view Western engagement with Ukraine, in particular engagement from the
United States, as essential to the goal of stability within the region.  As
one of Europe's largest countries, continued support from the United States
would instill sustained political and economic viability in Ukraine, thus
eliminating revanchist tendencies in neighboring Russia to restore its lost
empire.

As recently as several weeks ago, Jackson Diehl from The Washington Post
wrote:  "As giant Ukraine goes, so, likely will slip most of the other
former Soviet states that now live uneasily between the expanding European
Union and Russia.Putin and the former-KGB circle around him would like to
fold them all into a new bloc dominated by Moscow and able to bargain as a
quasi-equal with the EU and NATO.  That's why it's not surprising that
Putin's allies in Ukraine are on the offensive, employing the same tactics
here [in Ukraine].that succeeded in eliminating the democratic opposition in
Moscow - like the shutdown of independent media and prosecution of
businessmen who finance non-government parties."

                                     Civil Society in Ukraine

With engagement from the United States and other Western countries, Ukraine
has been very successful in developing a civil society, which as a result
has become increasingly vocal, active and influential in the development of
democratic institutions and behavior.  Having been involved in Ukraine's
political life as a civic educator since the early days of independence, the
Ukrainian Congress Committee of America (UCCA) has established close
contacts with a wide network of non-governmental organizations (NGO's)
throughout Ukraine.  Our organization has successfully implemented multiple
comprehensive civic education programs geared toward voter education and
awareness that emphasize citizen's rights and responsibilities.

Throughout the years of our involvement, the UCCA ensured that every project
implemented transfers Western experience and skills to Ukrainian NGO's.  We
develop our programs to assist in the building of civic organizations that
are self-sufficient, active, and as a result become an integral sector of
the developing political process. Similar approaches have been implemented
by various organizations that are involved in the democracy building process
in Ukraine.  It has proven to be a great success and as a result Ukrainian
NGO's continue to improve the quality of their work and advocacy.

Nevertheless, Ukrainian NGO's are faced with an insurmountable problem of
establishing a network through which to receive financial support from
various groups whose interests they represent.  Although small- and
medium-sized business is developing, Ukraine's economic arena is still
dominated by big business oligarchs.  At this critical juncture in the
history of Ukraine's new democracy, a failure to support the rights of the
Ukrainian electorate to an informed choice in the upcoming presidential
election will have profound repercussions not only in Ukraine, but also in
the currently transforming face of Europe.

The success of Ukraine as a dependable partner for the United States will
largely depend on the election of a new president, freely chosen by its 50
million citizens, and not by the dictates of a few.  The United States and
other members of the international democratic community need to remain
involved in pre-election programs and provide the Ukrainian NGO community
with effective financial assistance that will allow them to become
self-sufficient.

                             Presidential Elections in Ukraine

Presently, Ukraine is at a crossroads.  The results of the October
presidential elections will decide whether it will irreversibly commit
itself to democratic reforms and European integration, or become an
authoritarian state, in which the rule of law is compromised to the
advantage of those in power.  A free, fair and transparent election this
year is the only guarantee to further democratic development.

Recently, the government of Ukraine proposed changes to the constitution
that would establish a parliamentary republic rather than the current
presidential-parliamentary republic. Moreover, the Supreme Court of Ukraine
declared that President Kuchma was eligible to run for a third term despite
the Constitution's two-term limit, citing that he was elected prior to the
adoption of the Constitution in 1996.  Such attempts at Constitutional
reform have caused a strong reaction from the international community, not
to mention from the democratic/opposition forces within Ukraine.

On April 19, 2004, the mayoral election in Mukachevo, Transcarpathian region
of Ukraine, was marred by bold and open violations of election laws in
Ukraine.  Open interference with the voting process, voter intimidation,
threats and physical violence against observers, attacks on Members of
Ukrainian Parliament, and inaction by Ukraine's law enforcement structures
indicate the necessity for increased monitoring of electoral procedures
during the campaign process.  Many political analysts regard this mayoral
election as a strategic move to sway the Ukrainian electorate who otherwise
may be ambivalent toward the election process and stem their belief in the
importance of their individual role in the political process developing in
their state.

Therefore, international demands for an investigation of the violations and
punishment of its perpetrators is an extremely important example of
demonstrating that the citizens of Ukraine and the international community
will not allow such violations during the presidential elections in October.
Bowing to the domestic and international outcry, President Kuchma ordered an
investigation of the events in Mukachevo, but it remains to be seen what
results it will bring.  The commission's findings are to be completed by May
13, 2004.

The Ukrainian American community praises the past efforts and commitment of
the United States Congress to ensure that Ukraine develops into a truly
democratic state with a free-market economy.  H.Con.Res.415 expresses a
sense of Congress regarding the upcoming presidential elections in Ukraine,
yet limits its strategic focus towards Ukraine.  In the last thirteen years
of Ukraine's regained independence, with the help of the United States
Congress, the nation of Ukraine has successfully avoided inter-ethnic
conflicts, overcome a massive economic crisis, and most importantly has
begun to regained confidence in themselves as an essential element of their
state's political process.

Following her trip to Ukraine in February 2004, former Secretary of State
Madeleine Albright penned a New York Times op-ed article clearly
articulating the role of the United States towards Ukraine.  She writes:
"So what should the United States do to encourage democracy in Ukraine?
First speak out.President Bush and cabinet officials need to insist on free
and fair elections and they need to do it soon.Senior officials should visit
Ukraine, and other opportunities will come this June when leaders of the
Group of 8 industrialized nations, the European Union, and NATO meet.

Saving democracy in Ukraine belongs on that agenda."  It is the consensus
of the Ukrainian American community that the United States not suspend its
assistance at this most critical juncture for Ukraine, but rather continue
its engagement and support until Ukraine secures its ever-growing democracy.

                                      Freedom of Speech

Recently, the media in Ukraine has criticized the government's infringement
on the freedom of speech, as witnessed by the closure of two radio stations
that re-transmitted foreign programming of such internationally recognized
independent newscasters as Radio Free Europe/Radio Liberty (RFE/RL),
Deutsche Welle, BBC, the Voice of America (VOA), Polish Radio, etc.  The
U.S. Department of State's Country Report on Human Rights Practices for
Ukraine in 2003 sites issues whereby "authorities interfered with the news
media by harassing and intimidating journalists, censoring material, and
pressuring them into applying self-censorship."  Likewise, many journalists

have voiced their concern of the so-called "temnyky," a list of instructions
distributed to media outlets recommending them on how to cover certain
sensitive issues and what to include and not include in their news coverage.

Many of the independent media outlets that reported on corruption and abuses
of power by government officials or oligarchs have been intimidated by the
State Tax administration or other government agencies resulting in endless
audits, seizing equipment, imposing fines, and the like.  It is necessary to
say, however, that after a boisterous outcry by independent journalists in
Ukraine and the subsequent reprimand of the Ukrainian government's actions
by the international community, President Kuchma ordered all investigations
and audits against the media cease.

Although such procedures disrupted news coverage, the president's decision
provides a legal basis for maintaining the freedom of speech - a fundamental
right upheld by the Constitution of Ukraine.  Access to free and independent
media channels by the presidential candidates in Ukraine is essential for a
transparent electoral process.  As noted by various think-tank organizations
in the United States and worldwide, the need for increased support for the
news media in Ukraine remains paramount to attain equal access for all
candidates, as well as to institute confidence in the electorate's decision.

"I think that the overwhelming concern of the international community and
certainly of the United States," stated Deputy Secretary of State Armitage
at a press conference in Kyiv, Ukraine in March 2004, "at this stage in
Ukraine's development, that Ukraine is seen as a country mature enough to
go forward and hold free, fair, and democratic elections."

Ukraine is an important strategic partner of the United States.  An ally in
the war against international terrorism, it was one of the first states to
open its airspace to U.S. air forces during the war against al Quaeda in
Afghanistan.  Ukraine also joined the coalition of democratic forces to
re-establish peace and security in Iraq by providing the forth-largest
peacekeeping contingent as well as a nuclear, biological, and chemical (NBC)
battalion during the war in Iraq.  A stable and democratic Ukraine is
essential for the development of Central and East Europe, especially in the
context of the current European Union and NATO expansion.

Thus, as the world leader and champion of democracy, it is critical that the
United States remains involved in the democratic development in Ukraine and
helps ensure that the pre-election period is not marred with violations and
that the elections in Ukraine are conducted in a free, fair, and transparent
manner.

                                        Recommendations:

Members of the Subcommittee, Ukraine is at a crossroads.  Ensuring free and
fair presidential elections in Ukraine is paramount to further democratic
development, as the October 31, 2004 race will determine Ukraine future
course.  The Ukrainian Congress Committee of America humbly suggests the
following priorities for U.S. foreign policy toward Ukraine:

§        Continued support for the development of democracy, in particular,
non-governmental organizations (NGO's)

The NGO community is becoming an increasingly important sector in Ukraine's
political/democratic development.  NGO's are becoming more vocal in
expressing the opinion of the electorate, more effective in disseminating
non-partisan information among the citizens, and more successful in
educating the public to not only cast their ballot, but also to understand
their inalienable rights as citizens of a democratic country.

The Ukrainian Congress Committee of America has been involved in every
election campaign in Ukraine since 1994, and as a result, has developed
extensive contacts throughout the NGO community in Ukraine.  The UCCA's
projects have always been based on the belief that democracy embraces the
right of the people to freely determine their destiny and must be supported
by the notion of civic education.  By transferring western principles deemed
critical to democratic development, the UCCA programs are developed to
ensure sustainability and cooperation among Ukrainian NGO's even in the
inter-election periods - an integral part democratic development.

Therefore, U.S. assistance must be extended to the NGO community prior to
and following the presidential elections to ensure that the civic community
in strengthened and the democratic process continues.  Such assistance
should also be extended to the independent news media outlets in Ukraine in
an effort to allow for an equal playing field for all presidential
candidates.

§        An official delegation of election observers

Providing assistance to ensure free and fair election on the day of the vote
is also essential.  It is important for the Ukrainian people to see that
foreign governments, in particular the United States, not only provide
declaratory statements encouraging free and fair elections, but actively
participate in the elections as observers.  An official U.S. delegation of
International Election Observers will serve that purpose and facilitate a
better relationship between the United States and Ukraine.  We respectfully
urge you to recommend such action to your colleagues and organize an
official delegation of International Election Observers for October 31,
2004, as well as during the campaign period itself.

                                            Conclusion

Ukraine has reached a decisive stage in its transitional development.  The
international community, interested in ensuring peace and furthering the
tenets of democracy in the region, has provided significant assistance in
helping Ukraine overcome its Soviet legacy and integrate into European and
Euro-Atlantic structures; however, we urge the members of the House
International Relations Committee to continue their involvement in Ukraine
prior to and following the October 31, 2004 elections.

United Press International (UPI) correspondent Robin Shepherd eloquently
suggested in an analysis of Ukraine on May 11, 2004:  "What Ukraine needs
from the wider world is a healthy dose of the carrot and stick formula which
worked so well for the eight former communist countries which joined the
European Union on May 1.  A clear signal from Brussels [one may also add
here Washington, op. cit.] that Ukraine would be welcomed in as soon as it
meets the standards expected of a member of the European Union could work
wonders in mobilizing and enthusing the democratic opposition."

Indeed, issues currently discussed within U.S. government circles such as
Permanent Normal Trade Relations (PNTR); non-market economy (NME) status;
Ukraine's accession to the World Trade Organization (WTO), as well as a
myriad of other concerns could be catalysts for true democratic reform in
Ukraine.

On behalf of the Ukrainian Congress Committee of America, representing the
concerns of the Ukrainian American community, we seek your guidance and
thank you for your continuous support of democratic reforms in Ukraine.  We
express our sincerest hope that the United States remains a strategic
partner of a democratic Ukraine, as an equal among its European neighbors.


E. Morgan Williams, Coordinator
The Action Ukraine Coalition
Senior Advisor, Government Relations
U.S.-Ukraine Foundation (USUF)
Publisher and Editor, "The Action Ukraine Report"
Ukrainian News Website: http://www.ArtUkraine.com
P. O. Box 2607, Washington, D.C. 20013
202 437 4707
Office In Kyiv: 380 44 212 5586
Mobile in Kyiv: 380 50 689 2874

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