[Congressional Record Volume 143, Number 156 (Saturday, November 8, 1997)]
[Extensions of Remarks]
[Pages E2240-E2242]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             THE SILK ROAD STRATEGY ACT OF 1997, H.R. 2867

                                 ______
                                 

                        HON. BENJAMIN A. GILMAN

                              of new york

                    in the house of representatives

                        Friday, November 7, 1997

  Mr. GILMAN. Mr. Speaker, I am today introducing the Silk Road 
Strategy Act of 1997 (H.R. 2867), a measure designed to focus American 
diplomatic and commercial attention, as well as American foreign 
assistance, on the important regions of the Caucasus and Central Asia.
  The name Silk Road is an ancient one, referring to the East-West 
trade route that for so long linked China and other countries in East 
Asia with Italy and other countries in West Europe. The countries of 
the Caucasus and Central Asian regions, through which travelers on the 
Silk Road passed, fell victim to conflict and repression as the Russian 
tsars pushed south and then were replaced by the brutal dictatorship of 
the Bolshevik Commissars. For over seven decades the eight countries of 
these two regions--Georgia, Armenia, Azerbaijan, Uzbekistan, 
Turkmenistan, Tajikistan, Kyrgyzstan and Kazakhstan--were sealed behind 
the Iron Curtain, unable to move forward toward democracy and 
commercial prosperity with the rest of Europe and Asia. Ironically, the 
resources to fuel such progress lay just under the surface, in the form 
of vast gas and oil reserves.
  Mr. Speaker, the peoples of the Caucasus and Central Asia now face 
the challenge of rebuilding their links to Europe and Asia, and we in 
the United States have a national interest to help them overcome the 
obstacles that lay in the way of resurrecting the old Silk Road. 
Regrettably, these countries lie between Russia, Iran, Afghanistan and 
China. In Russia, they face a country that seems intent on forcing them 
to stay within its sphere of dominance. In Iran, they face a 
fundamental Islamic regime that seeks to use them to thwart efforts led 
by the United States to isolate Iran until it forsakes its support for 
international terrorism--and an Iran that hopes to forment 
fundamentalist Islam from Azerbaijan to the borders of

[[Page E2241]]

China. In Afghanistan, these countries face a country in turmoil--and a 
violence they fear could spread northward. Finally, in China they face 
the world's most populous nation, controlled by a brutal Communist 
regime that is looking hungrily to the energy reserves and natural 
resources of these thinly populated countries to fuel its industrial 
and technological expansion in the 21st century.
  What is the American interest in these two far-flung regions? First, 
we want to see democratic government take root in these states. 
Stability in these regions and in the broader Eurasian region may well 
depend on the successful consolidation of democratic governance in 
these states over the next decade or two, frankly, there is a lot of 
work ahead of us in that regard, Second, we want to defuse the current 
ethnic conflicts that are destabilizing the two regions, and that are 
providing neighboring states, such as Iran, the leverage to gain these 
countries' cooperation in major commercial endeavors, such as energy 
export pipelines. Finally, just as it is in America's interest to help 
these countries open up a window to the West to lessen their 
manipulation by their larger neighbors, it is in America's interest to 
see the energy reserves of the two regions opened up to the West. As my 
colleagues well know, our United States military forces face an 
increasingly difficult task in ensuring our continued access to the 
energy reserves of the Persian Gulf. We need to encourage the 
development of other sources of oil and gas as we enter the next 
century to lessen our dependence on their Persian Gulf as Iran and Iraq 
seek to manipulate that dependence. The reserves of the Caucasus and 
Central Asian regions do not compare with those of the Persian Gulf, 
but they are indeed vast, and we should look for ways to get pipelines 
out to the West--avoiding routes through countries, such as Russia and 
Iran, that may have a geopolitical interest to choke off those 
pipelines at some point in the future.
  Mr. Speaker, I invite my colleagues to join me in sponsoring this 
bill, H.R. 2867, a measure that, if enacted, would target our 
diplomatic attention and foreign assistance on these increasingly 
important regions.

                               H.R. 2867

       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:
       (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

[[Page E2242]]

     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 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;
       ``(3) section 907 of the Freedom for Russia and Emerging 
     Eurasian Democracies and Open Markets Support Act of 1992 (22 
     U.S.C. 5812 note; relating to restriction on assistance to 
     Azerbaijan), except such section shall not apply with respect 
     to--
       ``(A) activities to provide humanitarian assistance under 
     the Migration and Refugee Assistance Act of 1962 (22 U.S.C. 
     2601 et seq.);
       ``(B) activities to support democratic reforms and 
     democratic governance;
       ``(C) assistance for the control of narcotic and 
     psychotropic drugs and other controlled substances, or for 
     other anticrime purposes, under section 481(a)(4) of this Act 
     (22 U.S.C. 2291(a)(4));
       ``(D) assistance under programs carried out under section 
     1424 of the National Defense Authorization Act for Fiscal 
     Year 1997 (50 U.S.C. 2333);
       ``(E) assistance provided by the Trade and Development 
     Agency under section 661 of this Act (22 U.S.C. 2421) ; and
       ``(F) activities carried out by the United States and 
     Foreign Commercial Service; and
       ``(4) 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.

     

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