[Congressional Record Volume 141, Number 109 (Friday, June 30, 1995)]
[Senate]
[Pages S9566-S9570]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                   PAKISTAN: AMERICA'S LONG-TIME ALLY

 Mr. BROWN. Mr. President, the United States and Pakistan have 
a long-standing friendship. When South Asia gained its independence 
from Britain in 1947, the countries of the region faced an important 
choice--alignment with the United States or nonalignment and 
cooperation with the Soviet Union. Pakistan unabashedly chose the 
United States. In 1950, Pakistan's first Prime Minister visited the 
United States, laying the seeds for more than 40 years of close 
cooperation between our two countries.
  In 1950, Pakistan extended unqualified support to the United States-
led United Nations effort on the Korean peninsula. Pakistan joined in 
the fight against communism by joining the Central Treaty Organization 
[CENTO] in 1954 and the Southeast Asia Treaty Organization [SEATO] in 
1955. In 1959, Pakistan and the United States signed a mutual defense 
treaty, under which the United States setup a military airbase near 
Peshawar from which reconnaissance flights over the Soviet Union were 
conducted. This concession came at great risk to Pakistan. After the 
1960 shoot-down of Gary Powers over the Soviet Union, the Soviets 
issued threatening statements directed at Pakistan for its support of 
the United States.
  Ten years later, Pakistan worked with the United States to arrange 
the first United States opening to China when then-Secretary of State 
Henry Kissinger secretly visited China from Pakistan in 1970. Partly as 
a result of Soviet pique over Pakistan's assistance to the United 
States, the Soviets entered into a treaty of friendship with India, 
which was shortly followed by India's invasion of East Pakistan in 
1971.
  From 1979 to 1989, Pakistan opened its borders and joined to United 
States forces assisting the Afghan rebels fighting against the Soviet 
occupation of Afghanistan. The reliable assistance of our friends in 
Pakistan played a significant role in the Soviet defeat in Afghanistan, 
thereby hastening the collapse of the Soviet empire and monolithic 
world communism.
  Pakistan joined the United States during the Gulf war against Iraq, 
contributing significantly to the international forces arrayed against 
Saddam Hussein. Since 1992, Pakistan has been in the forefront of U.N. 
peacekeeping operations. In addition, Pakistan has cooperated 
extensively with the United States in our efforts to combat 
international terrorism, providing critical assistance in the 
apprehension and swift extradition of Ramzi Ahmed Yousef, the alleged 
mastermind of the terrorist attack on the World Trade Center in New 
York City. Pakistan has truly been a good friend of the United States.
  Pakistan currently faces a nuclear threat from India who faces a 
nuclear threat from China. This circular threat coupled with conflict 
after conflict in the region has created a spiraling arms race in South 
Asia. In 1985 the Congress adopted an amendment to the Foreign 
Assistance Act of 1961 cutting off all assistance to Pakistan if the 
President could not certify that Pakistan did not possess a nuclear 
explosive device. In 1990, the President was unable to issue such a 
certification.
  After 5 years, it is clear that the nonproliferation approach 
outlined in this amendment--known as the Pressler amendment--has not 
worked. The approach taken by the amendment attempts to penalize only 
one party to this regional nuclear arms race, while leaving the other 
parties free to produce nuclear weaponry and nuclear capable delivery 
systems
  China has undertaken the single largest military build-up in the 
world. India's weapons program has continued unabated since 1974 and is 
now developing nuclear capable missile delivery technology that is 
perceived as a direct threat to Pakistan. Faced with these threats to 
its national security, the restrictions on United States assistance 
have not deterred Pakistan from developing a nuclear weapons 
capability. It is clear that no progress in non-proliferation has been 
made in South Asia since these restrictions took effect.
  The President recognized this fact during the April 11, 1995, meeting 
with Prime Minister Bhutto of Pakistan after which he stated that ``in 
the end we're going to have to work for a nuclear-free subcontinent, a 
nuclear-free region, region free of all proliferation of weapons of 
mass destruction.'' Mr. President, I ask that the full text of the 
President's press conference with Mrs. Bhutto be printed in the Record.
  The text is as follows:
Press Conference by the President and Prime Minister Benazir Bhutto of 
                        Pakistan, April 11, 1995

       The President. Please be seated. Good afternoon. It's a 
     great pleasure for me to welcome Prime Minister Bhutto to the 
     White House. I'm especially pleased to host her today because 
     of the tremendous hospitality that the Prime Minister and the 
     Pakistani people showed to the First Lady and to Chelsea on 
     their recent trip.
       I've heard a great deal about the visit, about the people 
     they met, their warm welcome at the Prime Minister's home, 
     about the dinner the Prime Minister gave in their honor. The 
     food was marvelous, they said, but it was the thousands of 
     tiny oil lamps that lit the paths outside the Red Fort in 
     Lahore that really gave the evening its magical air. I regret 
     that here at the White House I can only match that with the 
     magic of the bright television lights. (Laughter)
       Today's meeting reaffirms the longstanding friendship 
     between Pakistan and the United States. It goes back to 
     Pakistan's independence. At the time, Pakistan was an 
     experiment in blending the ideals of a young democracy with 
     the traditions of Islam. In the words of Pakistan's first 
     President, Mohammed Ali Jinnah, Islam and its idealism have 
     taught us democracy. It has taught us the equality of man, 
     justice, and fair play to everybody. We are the inheritors of 
     the glorious traditions and are fully alive to our 
     responsibilities and obligations. Today Pakistan is pursuing 
     these goals of combining the 

[[Page S9567]]
     practice of Islam with the realities of democratic ideals, moderation, 
     and tolerance.
       At our meetings today, the Prime Minister and I focused on 
     security issues that affect Pakistan, its neighbor, India, 
     and the entire South Asian region. The United States 
     recognizes and respects Pakistan's security concerns. Our 
     close relationships with Pakistan are matched with growing 
     ties with India. Both countries are friends of the United 
     States, and contrary to some views, I believe it is possible 
     for the United States to maintain close relations with both 
     countries.
       I told the Prime Minister that if asked, we will do what we 
     can to help these two important nations work together to 
     resolve the dispute in Kashmir and other issues that separate 
     them. We will also continue to urge both Pakistan and India 
     to cap and reduce and finally eliminate their nuclear and 
     missile capabilities. As Secretary Perry stressed during his 
     visit to Pakistan earlier this year, we believe that such 
     weapons are a source of instability rather than a means to 
     greater security. I plan to work with Congress to find ways 
     to prevent the spread of nuclear weapons and to preserve the 
     aims of the Pressler Amendment, while building a stronger 
     relationship with a secure, more prosperous Pakistan. Our two 
     nations' defense consultative group will meet later this 
     spring.
       In our talks the Prime Minister and I also discussed issues 
     of global concern, including peacekeeping and the fight 
     against terrorism and narcotics trafficking. I want to thank 
     Prime
      Minister Bhutto and the Pakistani officers and soldiers who 
     have worked so closely with us in many peacekeeping 
     operations around the globe, most recently in Haiti, where 
     more than 800 Pakistanis are taking part in the United 
     Nations operation.
       On the issue of terrorism, I thank the Prime Minister for 
     working with us to capture Ramszi Yousef, one of the key 
     suspects in the bombing in the World Trade Center. We also 
     reviewed our joint efforts to bring to justice the cowardly 
     terrorist who murdered two fine Americans in Karachi last 
     month. I thanked the Prime Minister for Pakistan's effort in 
     recent months to eradicate opium poppy cultivation, to 
     destroy heroin laboratories, and just last week, to extradite 
     two major traffickers to the United States. We would like 
     this trend to continue.
       Finally, the Prime Minister and I discussed the ambitious 
     economic reform and privatization programs she has said will 
     determine the well-being of the citizens of Pakistan and 
     other Moslem nations. Last year, at my request, our Energy 
     Secretary, Hazel O'Leary, led a mission to Pakistan which 
     opened doors for many U.S. firms who want to do business 
     there. Encouraged by economic growth that is generating real 
     dividends for the Pakistani people. The United States and 
     other foreign firms are beginning to commit significant 
     investments, especially in the energy sector. I'm convinced 
     that in the coming years, the economic ties between our 
     peoples will grow closer, creating opportunities, jobs and 
     profits for Pakistanis and Americans alike.
       Before our meetings today, I was reminded that the Prime 
     Minister first visited the White House in 1989 during her 
     first term. She left office in 1990, but then was returned as 
     Prime Minister in free and fair elections in 1993. Her 
     presence here today testifies to her strong abilities and to 
     Pakistan's resilient democracy. It's no wonder she was 
     elected to lead a nation that aims to combine the best of the 
     traditions of Islam with modern democratic ideals. America is 
     proud to claim Pakistan among her closest friends. (Applause)
       Prime Minister Bhutto: Mr. President, ladies and gentlemen: 
     I'd like to begin by thanking the President for his kind 
     words of support and encouragement.
       Since 1989, my last visit to Washington, both the world and 
     Pak-U.S. relations have undergone far-reaching changes. The 
     post-Cold War era has brought into sharp focus the positive 
     role that Pakistan, as a moderate, democratic, Islamic 
     country of 130 million people, can play, and the fact that it 
     is strategically located at the tri-junction of South Asia, 
     Central Asia and the Gulf--a region of both political 
     volatility and economic opportunity.
       Globally, Pakistan is active in U.N. peacekeeping 
     operations. We are on the forefront of the fight against 
     international terrorism, narcotics, illegal immigration and 
     counterfeit currency. We remain committed to the control and 
     elimination of weapons of mass destruction, as well as the 
     delivery systems on a regional, equitable and non-
     discriminatory basis.
       Since 1993, concerted efforts by Pakistan and the United 
     States to broaden the base of bilateral relations have 
     resulted in steady progress. In September 1994, in a symbolic 
     gesture, the United States granted Pakistan about $10 million 
     in support for population planning. This was announced by the 
     Vice President at the Cairo Summit on population planning. 
     This was followed by the presidential mission, led by Energy 
     Secretary Hazel O'Leary, which resulted in agreement, worth 
     $4.6 billion being signed. And, now, during my visit here, we 
     are grateful to the administration and the Cabinet 
     secretaries for having helped us sign $6 billion more of 
     agreements between Pakistan and the United States.
       During the Defense Secretary's visit to Pakistan in January 
     1995, our countries decided to revive the Pakistan-United 
     States Defense Consultative Group. And more recently, we had 
     the First Lady and the First Daughter visit Pakistan, and we 
     had an opportunity to discuss women's issues and children's 
     issues with the First Lady. And we found the First Daughter 
     very knowledgeable. We found Chelsea very knowledgeable on 
     Islamic issues. I'm delighted to learn from the President 
     that Chelsea is studying Islamic history and has also 
     actually read our Holy Book, the Koran Shariah.
       I'm delighted to have accepted President Clinton's 
     invitation to Washington. This is the first visit by a 
     Pakistani's Chief Executive in six years. President Clinton 
     and I covered a wide range of subjects, including Kashmir, 
     Afghanistan, Central Asia, Gulf, Pakistan-India relations, 
     nuclear proliferation, U.N. peacekeeping, terrorism and 
     narcotics.
       I briefed him about corporate America's interest in 
     Pakistan, which has resulted in the signing of $12 billion 
     worth of MOUs in the last 17 months since our government took 
     office. I urged an early resolution of the core issue of 
     Kashmir, which poses a great threat to peace and security in 
     our region. It has retarded progress on all issues, including 
     nuclear and missile proliferation. A just and durable 
     solution is the need of the hour, based on the wishes of the 
     Kashmiri people, as envisaged in the Security Council 
     resolutions. Pakistan remains committed to engage in a 
     substantive dialogue with India to resolve this dispute, but 
     not in a charade that can be used by our neighbor to mislead 
     the international community. I am happy to note that the 
     United States recognizes Kashmir as disputed territory and 
     maintains that a durable solution can only be based on the 
     will of the Kashmiri people.
       Pakistan asked for a reassessment of the Pressler 
     Amendment, which places discriminatory sanctions on Pakistan. 
     In our view, this amendment has been a disincentive for a 
     regional solution to the proliferation issue. Pakistan has 
     requested the President and the administration to resolve the 
     problem of our equipment worth $1.4 billion, which is held 
     up. I am encouraged by my discussions with the President this 
     morning and the understanding that he has shown for 
     Pakistan's position. I welcome the Clinton administration's 
     decision to work with Congress to revise the Pressler 
     Amendment.
       Thank you, Mr. President.
       The President. Thank you.
       Terry.
       Question. Mr. President, you both mentioned the Pressler 
     Amendment, but I'm not sure what you intend to do. Will you 
     press Congress to allow Pakistan to receive the planes that 
     it paid for or to get its money back?
       The President. Let me tell you what I intend to do. First 
     of all, I intend to ask Congress to show some flexibility in 
     the Pressler Amendment so that we can have some economic and 
     military cooperation. Secondly, I intend to consult with them 
     about what we ought to do about the airplane sale.
       As you know, under the law as it now exists, we cannot 
     release the equipment. It wasn't just airplanes, it was more 
     than that. We cannot release the equipment. However, Pakistan 
     made payment. The sellers of the equipment gave up title and 
     received the money, and now it's in storage. I don't think 
     what happened was fair to Pakistan in terms of the money. 
     Now, under the law, we can't give up the equipment. The law 
     is clear. So I intend to consult with the Congress on that 
     and see what we can do.
       I think you know that our administration cares very deeply 
     about nonproliferation. We have worked very hard on it. We 
     have lobbied the entire world community for an indefinite 
     extension of the NPT. We have worked very hard to reduce the 
     nuclear arsenals of ourselves and Russia and the other 
     countries of the former Soviet Union. We are working for a 
     comprehensive test ban treaty. We are working to limit 
     fissile material production. We are working across the whole 
     range of issues on nonproliferation. But I believe that the 
     way this thing was left in 1990 and the way I found it when I 
     took office requires some modification, and I'm going to work 
     with the Congress to see what progress we can make.
       Question. Mr. President, what was your response to 
     Pakistan's suggestion that the United States would play an 
     active role in the solution of the Kashmir issue?
       President Clinton: The United States is willing to do that, 
     but can, as a practical matter, only do that if both sides 
     are willing to have us play a leading role. A mediator can 
     only mediate if those who are being mediated want it. We are 
     more than willing to do what we can to try to be helpful 
     here.
       And, of course, the Indians now are talking about 
     elections. It will be interesting to see who is eligible to 
     vote, what the conditions of the elections are, whether it 
     really is a free referendum of the people's will there. And 
     we have encouraged a resolution of this. When Prime Minister 
     Rao was here, I talked about this extensively with him. We 
     are willing to do our part, but we can only do that if both 
     sides are willing to have us play a part.
       Question. Madam Prime Minister, why do you need nuclear 
     weapons? And, Mr. President, don't you weaken your case to 
     denuclearize the world when you keep making exceptions?
       Prime Minister Bhutto: We don't have nuclear weapons; I'd 
     like to clarify that--that we have no nuclear weapons. And 
     this is our decision to demonstrate our commitment to----
       Question. But you are developing them?
       Prime Minister Bhutto: No. We have enough knowledge and 
     capability to make 

[[Page S9568]]
     and assemble a nuclear weapon, but we have voluntarily chosen not to 
     either assemble a nuclear weapon, to detonate a nuclear 
     weapon or to export technology. When a country doesn't have 
     the knowledge and says it believes in nonproliferation, I 
     take that with a pinch of salt. But when a country has that 
     knowledge--and the United States and other countries of the 
     world agree that Pakistan has that knowledge--and that 
     country does not use that knowledge to actually put together 
     or assemble a device, I think that that country should be 
     recognized as a responsible international player which has 
     demonstrated restraint and not taken any action to accelerate 
     our common goals of nonproliferation.
       The President: On your question about making an exception, 
     I don't favor making an exception in our policy for anyone. 
     But I think it's important to point out that the impact of 
     the Pressler Amendment is directed only against Pakistan. And 
     instead, we believe that in the end we're going to have to 
     work for a nuclear-free subcontinent, a nuclear-free region, 
     a region free of all proliferation of weapons of mass 
     destruction. And the import of the amendment basically was 
     rooted in the fact that Pakistan would have to bring into its 
     country, would have to import the means to engage in an arms 
     race, whereas India could develop such matters within this 
     own borders.
       The real question is, what is the best way to pursue 
     nonproliferation? This administration has an aggressive, 
     consistent,
      unbroken record of leading the world in the area of 
     nonproliferation. We will not shirk from that. But we 
     ought to do it in a way that is most likely to achieve the 
     desired results. And at any rate, that is somewhat 
     different from the question of the Catch-22 that Pakistan 
     has found itself in now for five years, where it paid for 
     certain military equipment; we could not, under the law, 
     give it after the previous administration made a 
     determination that the Pressler Amendment covered the 
     transaction, but the money was received, given to the 
     sellers, and has long since been spent.
       Question. But will you get a commitment from them to sign 
     the Non-Proliferation Treaty?
       The President: I will say again, I am convinced we're going 
     to have to have a regional solution there, and we are working 
     for that. But we are not making exceptions.
       Let me also make another point or two. We are not dealing 
     with a country that has manifested aggression toward the 
     United States or--in this area. We're dealing with a country 
     that just extradited a terrorist or a suspected terrorist in 
     the World Trade Center bombing; a country that has taken 
     dramatic moves in improving its efforts against terrorism, 
     against narcotics; that has just deported two traffickers--or 
     extradited two traffickers to the United States; a country 
     that has cooperated with us in peacekeeping in Somalia, in 
     Haiti, and other places.
       We are trying to find ways to fulfill our obligations, our 
     legal obligations under the Pressler Amendment, and our 
     obligation to ourselves and to the world to promote 
     nonproliferation and improve our relationships across the 
     whole broad range of areas where I think it is appropriate.
       Prime Minister Bhutto: May I just add that as far as we in 
     Pakistan are concerned, we have welcomed all proposals made 
     by the United States in connection with the regional solution 
     to nonproliferation, and we have given our own proposals for 
     a South Asia free of nuclear weapons and for a zero missile 
     regime. So we have been willing to play ball on a regional 
     level. Unfortunately, it's India that has not played ball. 
     And what we are asking for is a leveling of the playing field 
     so that we can attain our common goals of nonproliferation of 
     weapons of mass destruction.
       Question. Mr. President, why has the United States toned 
     down its criticism of India's human rights violations in 
     Kashmir--why has the United States toned down its criticism 
     of India's human rights violations in Kashmir?
       President Clinton: I'm sorry, sir. I'm hard of hearing. 
     Could you----
       Question. Why has the United States toned down criticism of 
     India's human rights violations in Kashmir?
       President Clinton: There's been no change in our policy 
     there. We are still trying to play a constructive role to 
     resolve this whole matter. That is what we want. We stand for 
     human rights. We'd like to see this matter resolved. We are 
     willing to play a mediating role. We can only do it if both 
     parties will agree. And we would like very much to see this 
     resolved.
       Obviously, if the issue of Kashmir were resolved, a lot of 
     these other issues we've been discussing here today would 
     resolve themselves. At least, I believe that to be the case. 
     And so, we want to do whatever the United States can do to 
     help resolve these matters because so much else depends on 
     it, as we have already seen.
       Question. Mr. President, a domestic question on the bill 
     you signed today for health insurance for the self-employed. 
     Other provisions in that bill send a so-called wrong message 
     on issues like affirmative action, a wrong message on wealthy 
     taxpayers. Why then did you sign it as opposed to sending it 
     back? Were you given any kind of a signal that this was the 
     best you'd get out of conference?
       President Clinton. Well, no. I signed the bill because--
     first of all, I do not agree with the exception that was made 
     in the bill. I accept the fact that the funding mechanism 
     that's in there is the one that's in there and I think it's 
     an acceptable funding mechanism. I don't agree with the 
     exception that was made in the bill. And it's a good argument 
     for line-item veto that applies to special tax preferences as 
     well as to special spending bills. If we had the line-item 
     veto, it would have been a different story.
       But I wanted this provision passed last year, and the 
     Congress didn't do it. I think it's a down payment on how we 
     ought to treat the self-employed in our country. Why should 
     corporations get a 100-percent deductibility and self-
     employed people get nothing or even 35 percent or 30 percent? 
     I did it because tax day is April 17th, and these people are 
     getting their records ready, and there are millions of them, 
     and they are entitled to this deduction. It was wrong for it 
     ever to expire in the first place.
       Now, I also think it was a terrible mistake for Congress to 
     take the provision out of the bill which allows--which would 
     have required billionaires to pay taxes on income earned as 
     American citizens and not to give up their citizenship just 
     to avoid our income tax. But that can be put on any bill in 
     the future. It's hardly a justification to veto a bill that 
     something unrelated to the main subject was not in the bill. 
     It is paid for.
       This definitely ought to be done. It was a bad mistake by 
     Congress. But that is not a justification to deprive over 
     three million American business people and farmers and all of 
     their families the benefit of this more affordable health 
     care through this tax break.
       Question. Mr. President, don't you think that the United 
     States is giving wrong signals to its allies by dumping 
     Pakistan who has been an ally for half a century in the cold 
     after the Iran war?
       President Clinton. First of all, sir, I have no intention 
     of dumping Pakistan. Since I've been President, we have done 
     everything we could to broaden our ties with Pakistan, to 
     deepen our commercial relationships, our political 
     relationships and our cooperation. The present problem we 
     have with the fact that the Pressler amendment was invoked 
     for the first--passed in 1985, invoked for the first time in 
     1990, and put Pakistan in a no-man's land where you didn't 
     have the equipment and you'd given up the money. That is what 
     I found when I became President. And I would very much like 
     to find a resolution of it.
       Under the amendment, I cannot--I will say again--under the 
     law, I cannot simply release the equipment. I cannot do that 
     lawfully. Therefore, we are exploring what else we can do to 
     try to resolve this in a way that is fair to Pakistan. I have 
     already made it clear to you--and I don't think any American 
     President has ever said this before--I don't think it's right 
     for us to keep the money and the equipment. That is not 
     right. And I am going to try to find a resolution to it. I 
     don't like this.
       Your country has been a good partner, and more importantly, 
     has stood for democracy and opportunity and moderation. And 
     the future of the entire part of the world where Pakistan is 
     depends in some large measure on Pakistan's success. So we 
     want to make progress on this. But the United States, a, has 
     a law, and b, has large international responsibilities in the 
     area of nonproliferation which we must fulfill.
       So I'm going to do the very best I can to work this out, 
     but I will not abandon Pakistan. I'm trying to bring the 
     United States closer to Pakistan, and that's why I am elated 
     that the Prime Minister is here today.
       Prime Minister Bhutto. And I'd like to say that we are 
     deeply encouraged by the understanding that President Clinton 
     has shown of the Pakistan situation, vis-a-vis the equipment 
     and vis-a-vis the security needs arising out of the Kashmir 
     dispute. And also, that Pakistan is willing to play ball in 
     terms of any regional situation.
       We welcome American mediation to help resolve the Kashmir 
     dispute. We are very pleased to note that the United States 
     is willing to do so, if India responds positively. And when 
     my President goes to New Delhi next month, this is an issue 
     which he can take up with the Prime Minister of India. But 
     let's get down to the business of settling the core dispute 
     of Kashmir so that our two countries can work together with 
     the rest of the world for the common purpose of peace and 
     stability.
       The President. Thank you.
       The Press. Thank you.

  Mr BROWN. Mr. President, the Senate Foreign Relations Committee was 
catalysed by the Prime Minister's recent visit, and agreed during our 
recent markup that a new approach is needed. We passed, by a vote of 16 
to 2, an amendment to modify these existing restrictions. I ask that a 
copy of the amendment and the report language also be printed in the 
Record.
  The amendment and report language are as follows:

                            Amendment No.--

       At the appropriate place in the bill, add the following new 
     section:

     ``SEC. 510. CLARIFICATION OF RESTRICTIONS UNDER SECTION 620E 
                   OF THE FOREIGN ASSISTANCE ACT OF 1961.

       Subsection (e) of section 620E of the Foreign Assistance 
     Act of 1961 (P.L. 87-195) is amended--
       (1) by striking the words ``No assistance'' and inserting 
     the words ``No military assistance'';

[[Page S9569]]

       (2) by striking the words ``in which assistance is to be 
     furnished or military equipment or technology'' and inserting 
     the words ``in which military assistance is to be furnished 
     or military equipment or technology''; and
       (3) by striking the words ``the proposed United States 
     assistance'' and inserting the words ``the proposed United 
     States military assistance'';
       (4) by adding the following new paragraph:
       ``(2) The prohibitions in this section do not apply to any 
     assistance or transfer provided for the purposes of:
       ``(A) International narcotics control (including Chapter 8 
     of Part I of this Act) or any provision of law available for 
     providing assistance for counternarcotics purposes;
       ``(B) Facilitating military-to-military contact, training 
     (including Chapter 5 of Part II of this Act) and humanitarian 
     and civic assistance projects;
       ``(C) Peacekeeping and other multilateral operations 
     (including Chapter 6 of Part II of this Act relating to 
     peacekeeping) or any provision of law available for providing 
     assistance for peacekeeping purposes, except that lethal 
     military equipment shall be provided on a lease or loan basis 
     only and shall be returned upon completion of the operation 
     for which it was provided;
       ``(D) Antiterrorism assistance (including Chapter 8 of Part 
     II of this Act relating to antiterrorism assistance) or any 
     provision of law available for antiterrorism assistance 
     purposes'';
       (5) by adding the following new subsections at the end--
       ``(f) Storage Costs.--The President may release the 
     Government of Pakistan of its contractual obligation to pay 
     the United States Government for the storage costs of items 
     purchased prior to October 1, 1990, but not delivered by the 
     United States Government pursuant to subsection (e) and may 
     reimburse the Government of Pakistan for any such amounts 
     paid, on such terms and conditions as the President may 
     prescribe, provided that such payments have no budgetary 
     impact.
       ``(g) Return of Military Equipment.--The President may 
     return to the Government of Pakistan military equipment paid 
     for and delivered to Pakistan and subsequently transferred 
     for repair or upgrade to the United States but not returned 
     to Pakistan pursuant to subsection (e). Such equipment or its 
     equivalent may be returned to the Government of Pakistan 
     provided that the President determines and so certifies to 
     the appropriate congressional committees that such equipment 
     or equivalent neither constitutes nor has received any 
     significant qualitative upgrade since being transferred to 
     the United States.''
       ``(h) Sense of Congress and Report.--
       ``(1) It is the sense of the Congress that:
       ``(A) fundamental U.S. policy interests in South Asia 
     include:
       ``(1) resolving underlying disputes that create the 
     conditions for nuclear proliferation, missile proliferation 
     and the threat of regional catastrophe created by weapons of 
     mass destruction;
       ``(2) achieving cooperation with the United States on 
     counterterrorism, counternarcotics, international 
     peacekeeping and other U.S. international efforts;
       ``(3) achieving mutually verifiable caps on fissile 
     material production, expansion and enhancement of the mutual 
     ``no first strike pledge'' and a commitment to work with the 
     United States to cap, roll-back and eliminate all nuclear 
     weapons programs in South Asia;
       ``(B) to create the conditions for lasting peace in South 
     Asia, U.S. policy toward the region must be balanced and 
     should not reward any country for actions inimical to the 
     United States interest;
       ``(C) the President should initiate a regional peace 
     process in South Asia with both bilateral and multilateral 
     tracks that includes both India and Pakistan;
       ``(D) the South Asian peace process should have on its 
     agenda the resolution of the following--
       ``(1) South Asian nuclear proliferation, including mutually 
     verifiable caps on fissile material production, expansion and 
     enhancement of the mutual ``no first strike'' pledge and a 
     commitment to work with the United States to cap, roll-back 
     and eliminate all nuclear weapons programs in South Asia;
       ``(2) South Asian missile proliferation;
       ``(3) Indian and Pakistani cooperation with Iran;
       ``(4) The resolution of existing territorial disputes, 
     including Kashmir;
       ``(5) Regional economic cooperation; and
       ``(6) Regional threats, including threats posed by Russia 
     and China.
       ``(2) Report.--Consistent with the existing reporting 
     requirements under subsection 620F(c) of the Foreign 
     Assistance Act of 1961 as amended, the President shall submit 
     a report to the appropriate congressional committees on the 
     progress of these talks, on whether South Asian countries are 
     working to further U.S. interests, and proposed U.S. actions 
     to further the resolution of the conflict in South Asia as 
     listed in (1) above and to further U.S. international 
     interests, including--
       ``(A) The degree and extent of cooperation by South Asian 
     countries with all U.S. international efforts, including 
     voting support within the United Nations; and
       ``(B) Whether withholding of military assistance, dual-use 
     technology, economic assistance and trade sanctions would 
     further U.S. interests.''
                                                                    ____


                          Excerpt From Report
     Section 510.--Clarification of restrictions under section 
         620E of the Foreign Assistance Act of 1961
       Section 510 amends section 620E(e) of the Foreign 
     Assistance Act of 1961, as amended. Section 510(1) strikes 
     the restrictions on all assistance to Pakistan and insert a 
     restriction on military assistance in its stead. Section 
     510(e)(E) adds several sections to section 620E(e) of the 
     Foreign Assistance Act, including: (1) a paragraph which 
     specifies that prohibitions of military assistance to 
     Pakistan do not apply to any assistance provided fro the 
     purposes of international narcotics control, military to 
     military contacts, training or humanitarian assistance, 
     peacekeeping, multilateral operations or antiterrorism 
     activities; (2) a waiver of storage costs for military 
     equipment not delivered to Pakistan and authorized repayment 
     of those costs; (3) authorization for the return of Pakistani 
     owned, unrepaired military equipment sent to the United 
     States; (4) a sense of Congress statement relating to United 
     States policy toward South Asia; and (5) an enhanced 
     reporting requirement under section 620F(c) of the Foreign 
     Assistance Act of 1961.
       The United States friendship with Pakistan dates from 1947, 
     soon after Pakistani independence. Since then Pakistan's 
     cooperation with the United States has been remarkable; 
     Pakistan stood with the United States throughout the cold war 
     against Soviet totalitarian expansionism; Pakistan has been 
     in the forefront of U.S.-initiated United Nations 
     peacekeeping operations; and Pakistan has cooperated 
     extensively with the United States in counterterrorism, 
     providing critical assistance in the apprehension and switch 
     extradition of Ramzi Ahmed Yousef, the alleged mastermind of 
     the terrorist attack on the World Trade Center in New York 
     City.
       For much of the last two decades, Pakistan has faced a 
     nuclear threat from India. India's nuclear program, initiated 
     in response to the threat perceived by China's development of 
     a nuclear weapon, and three wars fought between the two 
     countries, created the incentive for Pakistani pursuit of a 
     nuclear program. The United States provided conventional 
     military assistance to Pakistan, in part to discourage the 
     development of a nuclear program. In October 1990, the 
     President was unable to certify under section 620E(e) of the 
     Foreign Assistance Act of 1961 as amended (known as the 
     ``Pressler Amendment'') that Pakistan did not possess a 
     nuclear explosive device, and United States assistance to 
     Pakistan was ended.
       The Pressler restrictions required a cut-off of all United 
     States assistance to Pakistan, including assistance to United 
     States companies doing business there. However, this 
     legislation has not proven to be an effective tool of United 
     States non-proliferation efforts in South Asia. In 
     recognition of this, President Clinton called for a review of 
     the Pressler amendment on April 11, 1995.
       After careful and extensive consideration, the committee, 
     on a vote of 16 to 2, agreed to modify the existing 
     prohibitions on United States assistance to Pakistan under 
     section 620E(e). The provision included by the committee 
     specifically exempts from restrictions all assistance 
     provided for bilateral international narcotics control 
     activities, military-to-military contact, humanitarian 
     assistance, peacekeeping and counterterrorism assistance.
       The committee also clarified that the prohibition shall 
     only apply to military assistance. Currently, the State 
     Department has interpreted the Pressler amendment to include 
     all United States assistance and sales. The committee is 
     aware that certain aid, such as antiterrorism assistance, and 
     certain sales of United States goods are warranted and should 
     be encouraged. For example, equipment that assists in 
     confidence building measures between Pakistan and India 
     should not be prohibited. Such items would include border 
     surveillance equipment, radar, radar warning receivers, etc. 
     Items such as these not only promote border security and help 
     prevent surprise attacks, but also prevent accidental 
     incursions and incidents that could escalate into significant 
     confrontations. As with sales of military and non-military 
     items to India, sales of non-military equipment to Pakistan 
     would be made on a case-by-case basis.
       Notwithstanding President Clinton's commitment to resolve 
     the outstanding issue of $1.4 billion worth of equipment that 
     Pakistan bought, but that has not been delivered, the 
     administration continues to investigate possible solutions 
     and has yet to recommend a course of action. The committee 
     generally agreed that some resolution 1
      of this issue is important, but took no action pending an 
     administration recommendation.
     Section 511.--Statement of policy and requirement for report 
         on oil pipeline through Azerbaijan, Armenia, Georgia, and 
         Turkey
       Section 511 states that it is the sense of the Senate to 
     support construction of an oil pipeline through Azerbaijan, 
     Armenia, Georgia, and turkey. The section also requires a 
     report analyzing potential routes for construction of the 
     pipeline. The report shall include a discussion of the 
     advantages and disadvantages for different routes, including: 
     (1) the amount of oil to be transported along each route of 
     the pipeline; (2) the cost of constructing the pipeline; (3) 
     options for commercial and public financing of construction 

[[Page S9570]]
     of each route of the pipeline; and (4) the impact on regional stability 
     of the pipeline along each route.
       The oil-rich Transcaucasus region that stretches between 
     the Southern border of the Russian Federation and Iran is of 
     great geostrategic interest to the United States. Development 
     of an oil pipeline through Azerbaijan, Armenia and Turkey or 
     Georgia would provide the countries in the Transcaucasus with 
     economic access outside Russian or Iranian control. The 
     committee believes that such a pipeline would help ensure 
     that Armenia, Azerbaijan and Georgia remain strong and 
     independent nations while simultaneously providing the United 
     States with a major source of petroleum outside of the 
     Persian Gulf.
     Section 512.--Reports on eradication of production and 
         trafficking in narcotic drugs and marijuana
       Section 512 requires the President to submit a semiannual 
     report to Congress on the progress made by the United States 
     in eradicating production of and trafficking in illicit 
     drugs. The report shall be submitted in unclassified form 
     with a classified annex, if required.
     Section 513.--Reports on commercial disputes with Pakistan
       Section 513 requires the Secretary of State, in 
     consultation with the Secretary of Commerce, to report 30 
     days after the bill's enactment, and every 90 days 
     thereafter, on the status of disputes between the Government 
     of Pakistan and United States persons with respect to 
     cellular telecommunications and on the progress of efforts to 
     resolve such disputes. The requirement to submit the report 
     shall terminate upon certification by the Secretary of State 
     to Congress that all significant disputes between the 
     Government of Pakistan and United States persons with respect 
     to cellular communications have been satisfactorily resolved.
       In other sections of this bill, the committee broadened the 
     Pressler amendment to allow, among other things, for United 
     States trade and investment programs in Pakistan. However, 
     the committee believes that United States companies should 
     enjoy a friendly business atmosphere in Pakistan, without 
     which further development of economic relations will be 
     difficult.
     Section 514.--Nonproliferation and disarmament fund
       Section 514 authorizes $25 million for each of the fiscal 
     years 1996 and 1997 for the Nonproliferation and Disarmament 
     Fund [NDF]. The NDF supplements United States diplomatic 
     efforts to halt the spread of both weapons of mass 
     destruction and advanced conventional weapons, their delivery 
     systems, and related weapons and their means of delivery.
       Under authority provided in section 504 of the Freedom for 
     Russia and Emerging Eurasian Democracies and Open Markets 
     Support Act of 1992 (Freedom Support Act), significant 
     accomplishments in furthering these nonproliferation and 
     disarmament goals have been made. The NDF has, for example, 
     assisted in the purchase of unsafeguarded highly enriched 
     uranium from Kazakhstan, the destruction of Hungarian SCUD 
     missiles, and work on deploying seismic arrays in Egypt and 
     Pakistan necessary to test a global network to verify a 
     Comprehensive Test Ban Treaty.
       The NDF seeks bilateral and multilateral project proposals 
     that dismantle and destroy existing weapons of mass 
     destruction, their components and delivery systems, that 
     strengthen international safeguards and delivery systems, 
     that strengthen international safeguards, and that improve 
     export controls and nuclear smuggling efforts.
       Beginning in fiscal year 1996, the NDF will assume 
     responsibility for export control assistance to the Newly 
     Independent States [NIS]. This assistance has been provided 
     by the Department of Defense in earlier legislation 
     authorized under the Nunn-Lugar Comprehensive Threat 
     Reduction Program.
       The committee believes the NDF is an important element in 
     achieving the high priority national security and foreign 
     policy goal of slowing and reversing the proliferation of 
     weapons of mass destruction and advanced conventional 
     weapons.
     Section 515.--Russian nuclear technology agreement with Iran
       Section 515 expresses the sense of Congress regarding 
     Russia's nuclear agreement with Iran. The Committee is 
     profoundly concerned about an agreement between Russia and 
     Iran to sell nuclear power reactors to Iran. It is the sense 
     of this Committee that the Russian Federation should be 
     strongly condemned if it continues a commercial agreement to 
     provide Iran with nuclear technology which would assist that 
     country in its development of nuclear weapons. Moreover, if 
     such a transfer occurs, Russia would be ineligible for 
     assistance under the terms of the Freedom Support Act.
       During the May 1995 summit in Moscow, Russian President 
     Yeltsin was asked by President Clinton to cancel the reactor 
     sale to Iran. President Yeltsin did not halt the sale, but 
     instead cancelled the Russian sale of a gas centrifuge to 
     Iran and halted the training of 10 to 20 Iranian scientists a 
     year in Moscow.
       Iran is aggressively pursuing a nuclear-weapons acquisition 
     program. The Central Intelligence Agency stated in September 
     1994 that Iran probably could, with some foreign help, 
     acquire a nuclear weapons capability within 8 to 10 years. 
     Iran is receiving that foreign help from Russia and China. 
     Specifically, China is helping Iran build a nuclear research 
     reactor, and in April it concluded a deal to sell Iran two 
     light-water reactors. Pakistan, a country with . . . 

  Mr. BROWN. Mr. President, the nearly unanimous action by the Foreign 
Relations Committee is only a first step. Most importantly, there 
remains $1.4 billion worth of military equipment which Pakistan bought 
and paid for but which has never been delivered because of existing 
restrictions. President Clinton himself has said this situation is 
``not fair to Pakistan.'' On behalf of a country that has been one of 
our closest allies throughout the cold war, the United States must 
rectify this circumstance.
  I am certain the administration is developing alternatives, and I 
stand ready to work with them to ensure that our relationship with our 
close ally is able to move forward. Pakistan deserves fair 
treatment.


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