www.ukrweekly.com INSIDE:• Holovatyi’s election invalidated — page 3. • UNA historian speaks on eve of convention — page 6. • Modern-day Moses: Metropolitan Andrei Sheptytsky — page 8. Published by the Ukrainian National Association Inc., a fraternal non-profit association Vol. LXVI HE KRAINIANNo. 18 THE UKRAINIAN WEEKLY SUNDAY, MAY 3, 1998 EEKLY$1.25/$2 in Ukraine ControversyT over hiringU of former OSI chief Albright clearsW the way for Ukraine brings issue before Parliament committee to receive suspended U.S. aid funds by Andrij Kudla Wynnyckyj members of the Reform Party, as well as PARSIPPANY, N.J. – Secretary of State investors. Toronto Press Bureau the two MPs from the Bloc Québecois Madeleine K. Albright on April 29 cleared Reuters reported from Kyiv that Western (Michel Bellehumeur, Bertheir; Richard the way for Ukraine to receive nearly $100 entrepreneurs and diplomats in the OTTAWA – The Parliament of Marceau, Charlebourg) on the committee million in suspended U.S. economic aid, Ukrainian capital said the U.S. decision to Canada’s Standing Committee on Justice did not attend. reported the Associated Press. release all but a fraction of U.S. aid funds and Human Rights devoted its 58th meet- Ms. Cohen’s late arrival cut about 15 The move was based on a finding that earmarked for Ukraine may be sending too ing, held on April 28 in Room 371 of the minutes from the scheduled two-hour hear- Ukraine had made significant progress weak a signal to the country to improve its West Block Building here, to address ing, which could not be extended because toward resolving disputes with American business climate. questions surrounding the hiring of Neal of a crucial vote that evening in the House investors. A handful of cases remain unre- “The question is whether (withholding) Sher, a former director of the U.S. Justice of Commons. solved, said James P. Rubin, the State the $20 million is an adequate signal to Department’s Office of Special Department spokesman. Consequently, Ukrainian authorities that there is a prob- Investigations (OSI), as a consultant to the Particulars of the hiring about $10 million to $15 million in assis- lem, or whether it will be seen as the U.S. Canadian Justice Department’s Crimes Mr. Sims led off the session by explain- tance will be held back. caving in,’’ one Western diplomat said. Against Humanity and War Crimes ing “why we decided to hire a consultant at Congress ordered the cutoff after Section (WCS). “It’s just not enough,’’ said one Western all, why we picked Mr. Sher, what we’ve American firms complained they were vic- businessman, who asked not to be named, The meeting was requested by the asked him to do, and, perhaps as important- tims of corruption, bureaucratic red tape and of the U.S. measures. Official Opposition’s justice critic, Jack ly, what he is not doing.” other impediments to business. “We appre- A Western diplomat who did not wish to Ramsay of the Reform Party, in response to Mr. Sims said that “only a few years ciate the efforts made by the government of be identified told Reuters that the United protests over the hiring of Mr. Sher. remain to deal with those who were Ukraine to help resolve these cases,’’ Mr. States was reluctant to be seen as abandon- Mr. Sher appeared as a witness before engaged in reprehensible conduct during Rubin said. ing Ukraine. The diplomat said Secretary the committee, accompanied by Assistant the second world war” and that the pursuit Ukraine ranks third in terms of U.S. aid Deputy Attorney General John Sims, a sen- of such individuals is “a highly specialized Albright’s failure to certify the funds would allocated, but trails smaller neighboring have ended all funding from international ior member of the Justice’s Department business.” He added that the U.S. is an countries in foreign investments. Ukraine legal operations sector, head of legal servic- “obvious source” of people involved in the funding bodies, which have frequently has attracted $1.4 billion in direct foreign expressed frustration with the slow pace of es at the Ministry of Citizenship and effort, the OSI in particular, and that “this investment since it gained independence in Immigration, and a senior WCS official. led us to Mr. Sher.” economic reform in Ukraine. 1991. Ukraine was to receive $225 million The International Monetary Fund last Mr. Ramsay said he called Mr. Sher The Justice Department official said Mr. in U.S. assistance until Congress cut off fur- before the committee because of the heavy Sher was hired as a consultant to Paul week said there would be no more talk of a ther aid except for humanitarian help and $2.5 billion Extended Fund Facility credit volume of correspondence had received Vickery, director of the WCS, and to him- nuclear disarmament pending settlement of complaining about the OSI’s handling of a dozen cases of complaints by U.S. (Continued on page 13) individual cases, in particular the case (Continued on page 3) against retired Cleveland auto-worker John Demjanjuk. Besides addressing the particulars of Mr. Yale conference underlines necessity of institutional reform in Ukraine Sher’s work with Canada’s war crimes unit, much of the session centered on a re-exami- by Yaro Bihun administrative systems, as well as to rec- lations, an outmoded bureaucracy, and nation of the Demjanjuk case, and of the Special to The Ukrainian Weekly ommend solutions. organized crime and corruption that are fraud committed by the OSI attorney in What could have been expected to be a strangling the development of a free-mar- NEW HAVEN, Conn. – In order to theoretical, academic discourse from the ket economy in Ukraine. preparing for Mr. Demjanjuk’s denatural- become a full-fledged democratic state ization (since reversed) and extradition. outset was enlivened with dramatic news “Birth pains of new nation” with a modern market economy capable and current examples of problems: two Members of the Liberal government in of sustaining it, Ukraine must adopt attendance included Committee Chair days earlier, the head of Ukraine’s The most optimistic appeared to be the important institutional reforms, ridding Interbank Currency Exchange and former former U.S. ambassador to Ukraine, Shaughnessy Cohen (from the Ontario rid- itself of some of the harmful remnants of ing of Windsor-St. Clair), Paul DeVillers director of the National Bank of Ukraine, William Green Miller, who filled in for the Soviet system as well as some new Vadym Hetman, was killed in Kyiv, Mr. Yuschenko during the opening ses- (Ontario, Simcoe North, also parliamentary impediments that have evolved during the secretary to Stéphane Dion, minister of which kept the current National Bank sion and was the honored speaker at the transitional period. chairman, Viktor Yuschenko, from conference dinner. intergovernmental affairs), John Maloney That appeared to be the general con- (Ontario, Erie-Lincoln, the committee vice- appearing as the conference’s keynote He pointed out that Ukraine is going sensus at the April 24-25 Yale University chair), Derek Lee (Ontario, Scarborough- speaker. through “the birth pains of a new nation,” conference on “Institutional Reform in Rouge River) and Andrew Telegdi There were Cabinet changes in the starting from scratch in every aspect of its Ukraine: Implications for Emerging (Ontario, Kitchener-Waterloo). agriculture and economy ministries in life. Those who refer to it as a “basket Markets.” The conference brought togeth- Justice Minister Anne McLellan’s parlia- Kyiv during the conference, and case” might do well to remember that the er more than 130 experts and other inter- mentary secretary, Eleni Bakopanos Ukraine’s former justice minister and United States also was seen as a “basket (Québec, Ahuntsic), did not attend, nor did ested persons from the United States and conference participant Serhii Holovatyi case” in its early years – probably more the parliamentary secretary to Solicitor Ukraine, including government officials, lost his seat in the Verkhovna Rada when so than Ukraine is today, he added. General Andy Scott, Nick Discepola parliamentarians and representatives of a judge unexpectedly invalidated the “So, a temporary state of difficult (Québec, Vaudreuil-Soulanges), nor former the World Bank and the National Bank of results of the parliamentary election in his economy at the beginnings of nations is Secretary of State for Multiculturalism Ukraine, professors of leading education- Kyiv district. something that the world has witnessed Sheila Finestone (Québec, Mont Royal). al and research institutions, businessper- Mr. Holovatyi, who did not know the many times,” Ambassador Miller pointed From the opposition there was Mr. sons, investors and students. court was even considering the case, out. Ramsay (Alberta, Crowfoot), Progressive The fourth such conference in four learned about the decision while in New He said that Ukraine is only halfway Conservative Justice Critic and House years, it was part of the multi-year Yale- Haven and announced it during a panel through its necessary and difficult transi- Leader Peter MacKay (Nova Scotia, Ukraine Initiative established to enhance discussion on legal reforms. (See sidebar tional process, in which, in addition to its Pictou-Antigonish-Guysborough) and New the study of Ukraine at Yale with funds on page 3.) many problems, it has many great Democratic Party Justice Critic Peter from the Chopivsky Family Foundation. Of the more than 20 participants who achievements – in human rights and Mancini (Nova Scotia, Sydney-Victoria). The goal of the conference was to presented papers and addressed the con- nuclear disarmament, among others – Committee Vice-Chair Paul Forseth identify and analyze the institutional ference, some were more optimistic than which should be celebrated. He called (British Columbia, New Westminster- impediments in Ukraine’s political, finan- others about Ukraine’s chances of remov- Ukraine “the most important country in Coquitlam) and Garry Breitkreuz cial, economic, agricultural, legal and ing such impediments as excessive regu- (Continued on page 5) (Saskatchewan, Yorkton-Melville), both 2 THE UKRAINIAN WEEKLY SUNDAY, MAY 3, 1998 No.