Most US aid to Azerbaijan was stopped in 1992, in response to a
railway blockade imposed by Azerbaijan against Armenia during their
conflict over the enclave of Nagorno-Karabakh.
Mr Bush
said the latest move will not undermine efforts to negotiate a
peaceful settlement between Armenia and Azerbaijan.
A White
House spokesman said the president had signed the waiver after
thorough consultations with Congress and leaders of the
Armenian-American community.
He said
the Bush administration also planned to deepen security cooperation
with Armenia.
The
president of Azerbaijan, Heidar Aliyev, has backed the US
anti-terrorism campaign and allowed Washington to use his country's
airspace to move troops and supplies to bases in Central Asia.