1. All fifteen EU parliaments ratify agreement with Uzbekistan

2. Clinton nominates Limprecht as U.S. Ambassador to Albania

3. Uzbek foreign minister visits Tajikistan

4. Uzbek Prime Minister to officially visit Ukraine May 20-21

5. Uzbek-OSCE human rights document signed

6. Uzbek police arrest member of extremist organization

The purpose of the TIE Committee is to review issues in all sectors of the U.S.-Uzbek bilateral commercial relationship and to identify and implement ways to reach the shared goals of expanding trade, investment and cooperation in energy development. This is the second session of the Committee's work; Counselor Kalicki co-chaired the first session in April, 1998.

Counselor Kalicki noted that the U.S. had become one of Uzbekistan's leading foreign investors, accounting for about $400 mln. in current investment. More than 75 companies are represented in this country, and during the past year, an American Chamber of Commerce was registered in Tashkent. He mentioned several projects mounted by American firms which are underway, such as the Zarafshan-Newmont Joint Venture, export of agricultural equipment and joint ventures involving the J.I.Case company and export of compressors by M.W.Kellog-Dresser to Uzbekneftegaz. While these projects are indicative of the sort of success we can achieve in our bilateral commercial interaction, the full potential is, unfortunately, far from being reached.

In fact, Counselor Kalicki noted that rather than growing, the U.S.-Uzbek business connection is declining. Several significant indications of this trend have come to light this year: some 17 American firms have closed their offices here in the last year, there has been no new U.S. investment placed in the country and two-way trade levels have dropped 30% from the year before. Much of the work of this session of the TIE Committee was focused on how to reverse these trends and build more, rather than less, economic cooperation, job growth and technology transfer.

Counselor Kalicki strongly supported President Karimov's calls in his April 14 address to Parliament to "radically revise"Uzbekistan's system of foreign economic relations, to join the World Trade Organization to adopt completely free conversion of the soum by the year 2000 and to sharply reduce the interference by the state in a free market economy. He cited the important and constructive work of the American Chamber of Commerce in identifying obstacles which are hindering reaching the full potential of our economic relationship. Problems were noted in foreign exchange controls, burdensome business regulations and taxation policies, controls over foreign investment and trade and an underdeveloped legal basis for the conduct of normal business relationships. These obstacles, Counselor Kalicki stressed, were identified in a candid and constructive way intended to help both governments better focus on what could be done to help achieve real economic growth in Uzbekistan.

A Joint Statement was signed by Counselor Kalicki and Minister Ganiev at the conclusion of the meeting of the U.S.-Uzbekistan Trade, Investment and Energy Committee. The Statement contains several specific actions intended to help enhance the bilateral commercial relationship, including undertakings to seek early approval by Parliament of a new and far-reaching oil and gas law to promote investment in this sector, to hold regular contacts between the U.S. business community and senior officials of the government of Uzbekistan to help expand mutual understanding and to implement completely the guarantees under the Foreign Investment Law of Uzbekistan.

The Joint Commission, co-chaired by Foreign Minister Kamilov and Ambassador-at-Large Sestanovich for the U.S. side, will meet in Tashkent May 24-25. It has undertaken a wide range of activities of interest to both nations. Counselor Kalicki noted that both nations had made good progress since the last meeting of the Joint Commission last year. For this session, the Commission will look to further cooperation on the subjects noted above as well as the whole range of issues of regional interest and security cooperation. The commission will discuss democratic and human rights reforms and economic and commercial issues.