CARE withdrew a proposal to USAID to rehabilitate buildings and railroad cars as shelters for displaced AzerbaiJanis. because the structures were government owned. RI has been unable to do equalvalue exchanges of pharmaceuticals with other nonAmerican. nongovernmental organizations [NGOs] in Azerbaijan. a common practice in areas with scarce medical resources. because these other NGOs cooperate with the government. Two thousand IRObuilt latrines to prevent waterborne diseases among the refugee population cost twice what they should have. because a middleman had to be retained for purchasing supplies so as not to conduct business with the Government. The extreme gravity of the humanitarian situation in the country was best illustrated in a recent cable to the State Department from the current United States Ambassador to Azerbaijan. Richard Kauzlarich.