[Congressional Record Volume 143, Number 149 (Thursday, October 30, 1997)]
[Senate]
[Pages S11449-S11451]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BROWNBACK (for himself, Mr. Smith of Oregon, Mr. Lugar, 
        Mr. Hagel, Mr. McCain, Mr. Helms, and Mr. Byrd):
  S. 1344. A bill to amend the Foreign Assistance Act of 1961 to target 
assistance to support the economic and political independence of the 
countries of South Caucasus and Central Asia; to the Committee on 
Foreign Relations.


                   The Silk Road Strategy Act of 1997

  Mr. BROWNBACK. Mr. President, I am introducing the Silk Road Strategy 
Act of 1977. This is an overarching policy between the countries of the 
South Caucasus and Central Asia, which includes the countries of 
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, 
Turkmenistan, and Uzbekistan. Those are not common names to most 
Americans, but the area of the world that they are around, the Caspian 
Sea, I think, is going to become far more common knowledge to many 
Americans, as there is 4 trillion dollars worth of known oil and gas in 
the region.
  The region is reaching out to us. They are seeking to put off the 
Russian imperialism that has been in the region for years and seeking 
to get away from Iranian influence in the area.
  Thus, we are putting forward this Silk Road strategy as an active and 
positive role in reviving the economies of this region of the world and 
to building them as major forces.
  I think the United States has a vital political, social and economic 
interest in the region, and we need to act now rather than later. I 
don't think our window of opportunity in working with these countries 
as they seek freedom and yearn to be free and build opportunity for 
their people is long. Probably within the next 3 years, they are going 
to be making courses and decisions that will decide the long-term fate 
of the people of this region.
  They seek to be united with the United States. I ask, overall, that 
my colleagues look at this potential opportunity, at this bill and 
support the Silk Road Strategy Act of 1997. It is a key interest area 
for us and our future.
  This bill is aimed at focusing the attention of U.S. policy on the 
need to play an active and positive role in reviving the economies of 
these parts of the ancient Silk Road which was once the economic 
lifeline of Central Asia and the South Caucasus and the main 
transportation corridor to Europe and the West.
  The United States has vital political, social, and economic interests 
there and they need to be acted on now, before it is too late. These 
countries are at an historic crossroad: They are independent for the 
first time in almost a century, located at the juncture of many of 
today's major world forces and they are all rich in natural resources. 
They are emerging from almost a century of plunder by a Communist 
regime which, while it actively drained their resources, put little 
back. They now find themselves free to govern themselves, and they are 
looking west.
  The very fact that they have little experience of independence and 
that their economies are essentially starting from scratch, leaves them 
in a precarious situation, which is all the more precarious because of 
their geographic location: consider this: They are placed between the 
Empire from which they recently declared independence and an extremist 
Islamic regime to the south--both of which have a strong interest in 
exerting economic and political pressure upon them.
  These countries are very important to us:
  They are a major force in containing the spread northward of anti-
western Iranian extremism. Though Iranian activity in the region has 
been less blatant than elsewhere in the world, they are working very 
hard to bring the region into their sphere of influence and economic 
control.
  The Caspian Sea basin contains proven oil and gas reserves which, 
potentially, could rank third in the world after the Middle East and 
Russia and exceed $4 trillion in value. Investment in this region could 
ultimately reduce United States dependence on oil imports from the 
volatile Persian Gulf and could provide regional supplies as an 
alternative to Iranian sources.
  Strong market economies near Russia and China can only help to 
positively influence these two countries on their rocky path toward 
freedom.
  Finally, this region offers us a historic opportunity to spread 
freedom and democratic ideals. After years of fighting communism in 
this region, the doors are open to promote institutions of democratic 
government and to create the conditions for the growth of pluralistic 
societies, including religious tolerance.
  The single best way to consolidate our goals in the region is to 
promote regional cooperation and policies which will strengthen the 
sovereignty of each nation. Each of these countries has its own 
individual needs; however, many of the problems in the region overlap 
and are shared, and a number of common solutions and approaches can 
apply. This bill encourages this goal.
  All of the Silk Road countries are currently seeking U.S. investment 
and encouragement, and they are looking to us to assist them in working 
out regional political, economic and strategic cooperation. This bill 
authorizes assistance in all these areas.
  Given the correct infrastructure development, this region is and will 
continue to become, a key transit point that will ultimately link 
Central Asia with the West--as it did in the time when caravans 
traveled along these same routes in the Middle Ages.

  Opportunities to assist this infrastructure development abound--
taking advantage of these opportunities could not only cement political 
ties, but commercial and economic ones as well.
  The United States should do everything possible to promote this 
sovereignty and independence, as well as encourage solid diplomatic and 
economic cooperation between these nations.
  In order to do this we need to take a number of positive steps: We 
should be strong and active in helping to resolve local conflicts; we 
should be providing economic assistance to provide positive incentives 
for international private investments and increased trade; we should be 
assisting in the development of infrastructure necessary for 
communities, transportation, and energy and trade on an East-West axis; 
we should be providing security assistance to help fight the scourge of 
narcotics trafficking, the spread of weapons of mass destruction and 
the spread or organized crime; and--perhaps the most important of all--
we should be supplying all the assistance possible to strengthen 
democracy, tolerance and the development of civil society. These are 
the best ways to insure these countries remain independent and strong 
and that they move toward open and free government.
  Mr. President, the time to focus and act in this region is now. We 
have the opportunity to help these countries rebuild from the ground up 
and to encourage them to continue their strong independent stances, 
especially in relation to Iran and the spread of extremist, anti-
Western fundamentalism, which is one of the most clear and present 
dangers facing the United States today. I hope my colleagues will join 
me and support his bill.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1344

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Silk Road Strategy Act of 
     1997''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:

[[Page S11450]]

       (1) The ancient Silk Road, once the economic lifeline of 
     Central Asia and the South Caucasus, traversed much of the 
     territory now within the countries of Armenia, Azerbaijan, 
     Georgia, Kazakstan, Kyrgyzstan, Tajikistan, Turkmenistan, and 
     Uzbekistan.
       (2) Economic interdependence spurred mutual cooperation 
     among the peoples along the Silk Road and restoration of the 
     historic relationships and economic ties between those 
     peoples is an important element of ensuring their sovereignty 
     as well as the success of democratic and market reforms.
       (3) The development of strong political and economic ties 
     between countries of the South Caucasus and Central Asia and 
     the West will foster stability in the region.
       (4) The development of open market economies and open 
     democratic systems in the countries of the South Caucasus and 
     Central Asia will provide positive incentives for 
     international private investment, increased trade, and other 
     forms of commercial interactions with the rest of the world.
       (5) The Caspian Sea Basin, overlapping the territory of the 
     countries of the South Caucasus and Central Asia, contains 
     proven oil and gas reserves that may exceed 
     $4,000,000,000,000 in value.
       (6) The region of the South Caucasus and Central Asia will 
     produce oil and gas in sufficient quantities to reduce the 
     dependence of the United States on energy from the volatile 
     Persian Gulf region.
       (7) United States foreign policy and international 
     assistance should be narrowly targeted to support the 
     economic and political independence of the countries of the 
     South Caucasus and Central Asia.

     SEC. 3. POLICY OF THE UNITED STATES.

       It shall be the policy of the United States in the 
     countries of the South Caucasus and Central Asia--
       (1) to promote and strengthen independence, sovereignty, 
     and democratic government;
       (2) to assist actively in the resolution of regional 
     conflicts;
       (3) to promote friendly relations and economic cooperation;
       (4) to help promote market-oriented principles and 
     practices;
       (5) to assist in the development of the infrastructure 
     necessary for communications, transportation, and energy and 
     trade on an East-West axis in order to build strong 
     international relations and commerce between those countries 
     and the stable, democratic, and market-oriented countries of 
     the Euro-Atlantic Community; and
       (6) to support United States business interests and 
     investments in the region.

     SEC. 4. UNITED STATES EFFORTS TO RESOLVE CONFLICTS IN 
                   GEORGIA, AZERBAIJAN, AND TAJIKISTAN.

       It is the sense of Congress that the President should use 
     all diplomatic means practicable, including the engagement of 
     senior United States Government officials, to press for an 
     equitable, fair, and permanent resolution to the conflicts in 
     Georgia and Azerbaijan and the civil war in Tajikistan.

     SEC. 5. AMENDMENT OF THE FOREIGN ASSISTANCE ACT OF 1961.

       Part I of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2151 et seq.) is amended by adding at the end the following 
     new chapter:

 ``Chapter 12--Support for the Economic and Political Independence of 
          the Countries of the South Caucasus and Central Asia

     ``SEC. 499. UNITED STATES ASSISTANCE TO PROMOTE 
                   RECONCILIATION AND RECOVERY FROM REGIONAL 
                   CONFLICTS.

       ``(a) Purpose of Assistance.--The purposes of assistance 
     under this section are--
       ``(1) to create the basis for reconciliation between 
     belligerents;
       ``(2) to promote economic development in areas of the 
     countries of the South Caucasus and Central Asia impacted by 
     civil conflict and war; and
       ``(3) to encourage broad regional cooperation among 
     countries of the South Caucasus and Central Asia that have 
     been destabilized by internal conflicts.
       ``(b) Authorization for Assistance.--
       ``(1) In general.--To carry out the purposes of subsection 
     (a), the President is authorized to provide humanitarian 
     assistance and economic reconstruction assistance under this 
     Act, and assistance under the Migration and Refugee 
     Assistance Act of 1962 (22 U.S.C. 2601 et seq.), to the 
     countries of the South Caucasus and Central Asia to support 
     the activities described in subsection (c).
       ``(2) Definition of humanitarian assistance.--In this 
     subsection, the term `humanitarian assistance' means 
     assistance to meet urgent humanitarian needs, in particular 
     meeting needs for food, medicine, medical supplies and 
     equipment, and clothing.
       ``(c) Activities Supported.--Activities that may be 
     supported by assistance under subsection (b) are limited to--
       ``(1) providing for the essential needs of victims of the 
     conflicts;
       ``(2) facilitating the return of refugees and internally 
     displaced persons to their homes; and
       ``(3) assisting in the reconstruction of residential and 
     economic infrastructure destroyed by war.
       ``(d) Policy.--It is the sense of Congress that the United 
     States should, where appropriate, support the establishment 
     of neutral, multinational peacekeeping forces to implement 
     peace agreements reached between belligerents in the 
     countries of the South Caucasus and Central Asia.

     ``SEC. 499A. ECONOMIC ASSISTANCE.

       ``(a) Purpose of Assistance.--The purpose of assistance 
     under this section is to foster the conditions necessary for 
     regional economic cooperation in the South Caucasus and 
     Central Asia.
       ``(b) Authorization for Assistance.--To carry out the 
     purpose of subsection (a), the President is authorized to 
     provide technical assistance to the countries of the South 
     Caucasus and Central Asia to support the activities described 
     in subsection (c).
       ``(c) Activities Supported.--Activities that may be 
     supported by assistance under subsection (b) are limited to 
     the development of the structures and means necessary for the 
     growth of private sector economies based upon market 
     principles.
       ``(d) Policy.--It is the sense of Congress that the United 
     States should--
       ``(1) assist the countries of the South Caucasus and 
     Central Asia to develop laws and regulations that would 
     facilitate the ability of those countries to join the World 
     Trade Organization;
       ``(2) provide permanent nondiscriminatory trade treatment 
     (MFN status) to the countries of the South Caucasus and 
     Central Asia; and
       ``(3) consider the establishment of zero-to-zero tariffs 
     between the United States and the countries of the South 
     Caucasus and Central Asia.

     ``SEC. 499B. DEVELOPMENT OF INFRASTRUCTURE.

       ``(a) Purpose of Assistance.--The purposes of assistance 
     under this section are--
       ``(1) to develop the physical infrastructure necessary for 
     regional cooperation among the countries of the South 
     Caucasus and Central Asia; and
       ``(2) to encourage closer economic relations between those 
     countries and the United States and other developed nations.
       ``(b) Authorization for Assistance.--To carry out the 
     purposes of subsection (a), the following types of assistance 
     to the countries of the South Caucasus and Central Asia are 
     authorized to support the activities described in subsection 
     (c):
       ``(1) Activities by the Export-Import Bank to complete the 
     review process for eligibility for financing under the 
     Export-Import Bank Act of 1945.
       ``(2) The provision of insurance, reinsurance, financing, 
     or other assistance by the Overseas Private Investment 
     Corporation.
       ``(3) Assistance under section 661 of this Act (relating to 
     the Trade and Development Agency).
       ``(c) Activities Supported.--Activities that may be 
     supported by assistance under subsection (b) are limited to 
     promoting actively the participation of United States 
     companies and investors in the planning, financing, and 
     construction of infrastructure for communications, 
     transportation, and energy and trade including highways, 
     railroads, port facilities, shipping, banking, insurance, 
     telecommunications networks, and gas and oil pipelines.
       ``(d) Policy.--It is the sense of Congress that the United 
     States representatives at the International Bank for 
     Reconstruction and Development, the International Finance 
     Corporation, and the European Bank for Reconstruction and 
     Development should encourage lending to the countries of the 
     South Caucasus and Central Asia to assist the development of 
     the physical infrastructure necessary for regional economic 
     cooperation.

     ``SEC. 499C. SECURITY ASSISTANCE.

       ``(a) Purpose of Assistance.--The purpose of assistance 
     under this section is to assist countries of the South 
     Caucasus and Central Asia to secure their borders and 
     implement effective controls necessary to prevent the 
     trafficking of illegal narcotics and the proliferation of 
     technology and materials related to weapons of mass 
     destruction (as defined in section 2332a(c)(2) of title 18, 
     United States Code), and to contain and inhibit transnational 
     organized criminal activities.
       ``(b) Authorization for Assistance.--To carry out the 
     purpose of subsection (a), the President is authorized to 
     provide the following types of assistance to the countries of 
     the South Caucasus and Central Asia to support the activities 
     described in subsection (c):
       ``(1) Assistance under chapter 5 of part II of this Act 
     (relating to international military education and training).
       ``(2) Assistance under chapter 8 of this part of this Act 
     (relating to international narcotics control assistance).
       ``(3) The transfer of excess defense articles under section 
     516 of this Act (22 U.S.C. 2321j).
       ``(c) Activities Supported.--Activities that may be 
     supported by assistance under subsection (b) are limited to 
     assisting those countries of the South Caucasus and Central 
     Asia in developing capabilities to maintain national border 
     guards, coast guard, and customs controls.
       ``(d) Policy.--It is the sense of Congress that the United 
     States should encourage and assist the development of 
     regional military cooperation among the countries of the 
     South Caucasus and Central Asia through programs such as the 
     Central Asian Battalion and the Partnership for Peace of the 
     North Atlantic Treaty Organization.

     ``SEC. 499D. STRENGTHENING DEMOCRACY, TOLERANCE, AND THE 
                   DEVELOPMENT OF CIVIL SOCIETY.

       ``(a) Purpose of Assistance.--The purpose of assistance 
     under this section is to promote institutions of democratic 
     government and to create the conditions for the growth of 
     pluralistic societies, including religious tolerance.
       ``(b) Authorization for Assistance.--To carry out the 
     purpose of subsection (a), the

[[Page S11451]]

     President is authorized to provide the following types of 
     assistance to the countries of the South Caucasus and Central 
     Asia.
       ``(1) Technical assistance for democracy building.
       ``(2) Technical assistance for the development of 
     nongovernmental organizations.
       ``(3) Technical assistance for development of independent 
     media.
       ``(4) Technical assistance for the development of the rule 
     of law.
       ``(5) International exchanges and advanced professional 
     training programs in skill areas central to the development 
     of civil society.
       ``(c) Activities Supported.--Activities that may be 
     supported by assistance under subsection (b) are limited to 
     activities that directly and specifically are designed to 
     advance progress toward the development of democracy.
       ``(d) Policy.--It is the sense of Congress that the Voice 
     of America and RFE/RL, Incorporated, should maintain high 
     quality broadcasting for the maximum duration possible in the 
     native languages of the countries of the South Caucasus and 
     Central Asia.

     ``SEC. 499E. INELIGIBILITY FOR ASSISTANCE.

       ``(a) In General.--Except as provided in subsection (b), 
     assistance may not be provided under this chapter for a 
     country of the South Caucasus or Central Asia if the 
     President determines and certifies to the appropriate 
     congressional committees that the country--
       ``(1) is engaged in a consistent pattern of gross 
     violations of internationally recognized human rights;
       ``(2) has, on or after the date of enactment of this 
     chapter, knowingly transferred to another country--
       ``(A) missiles or missile technology inconsistent with the 
     guidelines and parameters of the Missile Technology Control 
     Regime (as defined in section 11B(c) of the Export 
     Administration Act of 1979 950 U.S.C. App. 2410b(c); or
       ``(B) any material, equipment, or technology that would 
     contribute significantly to the ability of such country to 
     manufacture any weapon of mass destruction (including 
     nuclear, chemical, and biological weapons) if the President 
     determines that the material, equipment, or technology was to 
     be used by such country in the manufacture of such weapons;
       ``(3) has supported acts of international terrorism;
       ``(4) is prohibited from receiving such assistance by 
     chapter 10 of the Arms Export Control Act or section 
     306(a)(1) and 307 of the Chemical and Biological Weapons 
     Control and Warfare Elimination Act of 1991 (22 U.S.C. 
     5604(a)(1), 5605); or
       ``(5) has initiated an act of aggression against another 
     state in the region after the date of enactment of the Silk 
     Road Strategy Act of 1997.
       ``(b) Exception to Ineligibility.--Notwithstanding 
     subsection (a), assistance may be provided under this chapter 
     if the President determines and certifies in advance to the 
     appropriate congressional committees that the provision of 
     such assistance is important to the national interest of the 
     United States.

     ``SEC. 499F. ADMINISTRATIVE AUTHORITIES.

       ``(a) Assistance Through Governments and Nongovernmental 
     Organizations.--Assistance under this chapter may be provided 
     to governments or through nongovernmental organizations.
       ``(b) Use of Economic Support Funds.--Except as otherwise 
     provided, any funds that have been allocated under chapter 4 
     of part II for assistance for the independent states of the 
     former Soviet Union may be used in accordance with the 
     provisions of this chapter.
       ``(c) Terms and Conditions.--Assistance under this chapter 
     shall be provided on such terms and conditions as the 
     President may determine.
       ``(d) Superseding Existing Law.--The authority to provide 
     assistance under this chapter supersedes any other provision 
     of law, except for--
       ``(1) this chapter;
       ``(2) section 634A of this Act and comparable notification 
     requirements contained in sections of the annual foreign 
     operations, export financing, and related programs Act; and
       ``(3) section 1341 of title 31, United States Code 
     (commonly referred to as the ``Anti-Deficiency Act''), the 
     Congressional Budget and Impoundment Control Act of 1974, the 
     Balanced Budget and Emergency Deficit Control Act of 1985, 
     and the Budget Enforcement Act of 1990.

     ``SEC. 499G. DEFINITIONS.

       ``In this chapter:
       ``(1) Appropriate congressional committees.--The term 
     `appropriate congressional committees' means the Committee on 
     Foreign Relations of the Senate and the Committee on 
     International Relations of the House of Representatives.
       ``(2) Countries of the south caucasus and central asia.--
     The term `countries of the South Caucasus and Central Asia' 
     means Armenia, Azerbaijan, Georgia, Kazakstan, Kyrgystan, 
     Tajikistan, Turkmenistan, and Uzbekistan.''.

     SEC. 6. ANNUAL REPORT.

       Beginning one year after the date of enactment of this Act, 
     and annually thereafter, the President shall submit a report 
     to the appropriate congressional committees--
       (1) identifying the progress of United States foreign 
     policy to accomplish the policy identified in section 3;
       (2) evaluating the degree to which the assistance 
     authorized by chapter 12 of part I of the Foreign Assistance 
     Act of 1961, as added by section 5 of this Act, was able to 
     accomplish the purposes identified in those sections; and
       (3) recommending any additional initiatives that should be 
     undertaken by the United States to implement the policy and 
     purposes contained in this Act.

     SEC. 7. DEFINITIONS.

       In this Act:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means the Committee 
     on Foreign Relations of the Senate and the Committee on 
     International Relations of the House of Representatives.
       (2) Countries of the south caucasus and central asia.--The 
     term ``countries of the South Caucasus and Central Asia'' 
     means Armenia, Azerbaijan, Georgia, Kazakstan, Kyrgystan, 
     Tajikistan, Turkmenistan, and Uzbekistan.
                                 ______