[Congressional Record Volume 145, Number 111 (Monday, August 2, 1999)]
[House]
[Pages H6785-H6789]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SILK ROAD STRATEGY ACT OF 1999
Mr. BEREUTER. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 1152) 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, as amended.
The Clerk read as follows:
H.R. 1152
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
1999''.
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, economic, and
security ties among countries of the South Caucasus and
Central Asia and the West will foster stability in this
region, which is vulnerable to political and economic
pressures from the south, north, and east.
(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) Many of the countries of the South Caucasus have
secular Muslim governments that are seeking closer alliance
with the United States and that have active and cordial
diplomatic relations with Israel.
(6) The region of the South Caucasus and Central Asia could
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 as well as democracy
building, free market policies, human rights, and regional
economic integration 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,
democratic government, and respect for human rights;
(2) to promote tolerance, pluralism, and understanding and
counter racism and anti-Semitism;
(3) to assist actively in the resolution of regional
conflicts and to facilitate the removal of impediments to
cross-border commerce;
(4) to promote friendly relations and economic cooperation;
(5) to help promote market-oriented principles and
practices;
(6) to assist in the development of the infrastructure
necessary for communications, transportation, education,
health, 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
(7) to support United States business interests and
investments in the region.
SEC. 4. UNITED STATES EFFORTS TO RESOLVE CONFLICTS IN THE
SOUTH CAUCASUS AND CENTRAL ASIA.
It is the sense of the 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 the South Caucasus and Central Asia.
SEC. 5. AMENDMENT TO 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 include--
``(1) the creation of the basis for reconciliation between
belligerents in the countries of the South Caucasus and
Central Asia;
``(2) the promotion of economic development in areas of the
countries of the South Caucasus and Central Asia impacted by
civil conflict and war; and
``(3) the encouragement of 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 for 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 humanitarian needs, including needs for
food, medicine, medical supplies and equipment, education,
and clothing.
``(c) Activities Supported.--Activities that may be
supported by assistance under subsection (b) include--
``(1) providing for the humanitarian 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 the 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 economic growth and
development, including the conditions necessary for regional
economic cooperation, among the countries of the South
Caucasus and Central Asia.
``(b) Authorization for Assistance.--To carry out the
purpose of subsection (a), the President is authorized to
provide assistance for the countries of the South Caucasus
and Central Asia to support the activities described in
subsection (c).
``(c) Activities Supported.--In addition to the activities
described in section 498, activities supported by assistance
under subsection (b) should support 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 the Congress that the
United States should--
``(1) assist the countries of the South Caucasus and
Central Asia to develop policies, laws, and regulations that
would facilitate the ability of those countries to develop
free market economies and to join the World Trade
Organization to enjoy all the benefits of membership; and
``(2) 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 Programs.--The purposes of programs under
this section include--
``(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 and to
facilitate the removal of impediments to cross-border
commerce among those countries and the United States and
other developed nations.
``(b) Authorization for Programs.--To carry out the
purposes of subsection (a), the following types of programs
for the countries of the South Caucasus and Central Asia may
be used to support the activities described in subsection
(c):
``(1) Activities by the Export-Import Bank of the United
States 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 programs under subsection (b) include promoting
actively the participation of United States companies and
investors in the planning, financing, and construction of
infrastructure for communications, transportation, including
air 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 the Congress that the
United States representatives at the International Bank for
Reconstruction and Development, the International Finance
Corporation, and the European Bank
[[Page H6786]]
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. BORDER CONTROL ASSISTANCE.
``(a) Purpose of Assistance.--The purpose of assistance
under this section includes aiding the 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 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) include
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 the 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 and
respect for internationally recognized human rights, in the
countries of the South Caucasus and Central Asia.
``(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) Assistance for democracy building, including programs
to strengthen parliamentary institutions and practices.
``(2) Assistance for the development of nongovernmental
organizations.
``(3) Assistance for development of independent media.
``(4) Assistance for the development of the rule of law, a
strong independent judiciary, and transparency in political
practice and commercial transactions.
``(5) International exchanges and advanced professional
training programs in skill areas central to the development
of civil society.
``(6) Assistance to promote increased adherence to civil
and political rights under section 116(e) of this Act.
``(c) Activities Supported.--Activities that may be
supported by assistance under subsection (b) include
activities that are designed to advance progress toward the
development of democracy.
``(d) Policy.--It is the sense of the 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.--
``(1) Bases for exclusion.--Subject to paragraph (2), and
except as provided in subsection (b), assistance may not be
provided under this chapter for the government of a country
of the South Caucasus or Central Asia if the President
determines and certifies to the appropriate congressional
committees that the government of such country--
``(A) is engaged in a consistent pattern of gross
violations of internationally recognized human rights;
``(B) has, on or after the date of enactment of this
chapter, knowingly transferred to, or knowingly allowed to be
transferred through the territory of such country to, another
country--
``(i) 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 (50 U.S.C. App. 2410b(c)); or
``(ii) any material, equipment, or technology that would
contribute significantly to the ability of such country to
manufacture any weapon of mass destruction (including any
nuclear, chemical, or biological weapon) if the President
determines that the material, equipment, or technology was to
be used by such country in the manufacture of such weapons;
``(C) has repeatedly provided support for acts of
international terrorism;
``(D) 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
``(E) has not made significant progress toward resolving
trade disputes registered with and raised by the United
States embassy in such country.
``(2) Certifications prior to eligibility.--Assistance may
not be provided under this chapter to a country unless the
President certifies to the appropriate congressional
committees that elections held in that country are free and
fair and are free of substantial criticism by the
Organization for Security and Cooperation in Europe and other
appropriate international organizations.''.
``(b) Exceptions to Ineligibility.--
``(1) Exceptions.--Assistance prohibited by subsection (a)
or any similar provision of law, other than assistance
prohibited by the provisions referred to in subparagraphs (B)
and (D) of subsection (a)(1), may be furnished under any of
the following circumstances:
``(A) The President determines that furnishing such
assistance is important to the national interest of the
United States.
``(B) The President determines that furnishing such
assistance will foster respect for internationally recognized
human rights and the rule of law or the development of
institutions of democratic governance.
``(C) The assistance is furnished for the alleviation of
suffering resulting from a natural or man-made disaster.
``(D) The assistance is provided under the secondary school
exchange program administered by the United States
Information Agency.
``(2) Report to congress.--The President shall immediately
report to Congress any determination under paragraph (1) (A)
or (B) or any decision to provide assistance under paragraph
(1)(C).
``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) Available Authorities.--The authority in this chapter
to provide assistance for the countries of the South Caucasus
and Central Asia is in addition to the authority to provide
such assistance under the FREEDOM Support Act (22 U.S.C. 5801
et seq.) or any other Act, and the authorities applicable to
the provision of assistance under chapter 11 may be used to
provide assistance under this chapter.
``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, Kyrgyzstan,
Tajikistan, Turkmenistan, and Uzbekistan.''.
SEC. 6. ANNUAL REPORT.
Section 104 of the FREEDOM Support Act (22 U.S.C. 5814) is
amended--
(1) by striking ``and'' at the end of paragraph (3);
(2) by striking the period at the end of paragraph (4) and
inserting ``; and''; and
(3) by adding the following new paragraph:
``(5) with respect to the countries of the South Caucasus
and Central Asia--
``(A) identifying the progress of United States foreign
policy to accomplish the policy identified in section 3 of
the Silk Road Strategy Act of 1999;
``(B) evaluating the degree to which the assistance
authorized by chapter 12 of part I of the Foreign Assistance
Act of 1961 has been able to accomplish the purposes
identified in that chapter; and
``(C) recommending any additional initiatives that should
be undertaken by the United States to implement the policy
and purposes contained in the Silk Road Strategy Act of
1999.''.
SEC. 7. UNITED STATES-ISRAEL ECONOMIC DEVELOPMENT COOPERATION
IN THE SOUTH CAUCASUS AND CENTRAL ASIA.
It is the sense of the Congress that the United States
should continue to provide assistance to the Centre for
International Cooperation (MASHAV) of the Ministry of Foreign
Affairs of Israel under the Cooperative Development Program/
Central Asian Republics (CDP/CAR) program of the United
States Agency for International Development, for economic
development activities in agriculture, health, and other
relevant sectors, that are consistent with the priorities of
the Agency for International Development in the countries of
the South Caucasus and Central Asia.
SEC. 8. CONFORMING AMENDMENTS.
Section 102(a) of the FREEDOM Support Act (Public Law 102-
511) is amended in paragraphs (2) and (4) by striking each
place it appears ``this Act)'' and inserting ``this Act and
the Silk Road Strategy Act of 1999)''.
SEC. 9. 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.
[[Page H6787]]
(2) Countries of the south caucasus and central asia.--The
term ``countries of the South Caucasus and Central Asia''
means Armenia, Azerbaijan, Georgia, Kazakstan, Kyrgyzstan,
Tajikistan, Turkmenistan, and Uzbekistan.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Nebraska (Mr. Bereuter) and the gentleman from Pennsylvania (Mr.
Hoeffel) each will control 20 minutes.
The Chair recognizes the gentleman from Nebraska (Mr. Bereuter).
General Leave
Mr. BEREUTER. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days within which to revise and extend their
remarks on H.R. 1152, as amended.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Nebraska?
There was no objection.
Mr. BEREUTER. Mr. Speaker, I yield myself such time as I may consume.
(Mr. BEREUTER asked and was given permission to revise and extend his
remarks.)
Mr. BEREUTER. Mr. Speaker, as the Vice Chairman of the Committee on
International Relations and the original sponsor of H.R. 1152, this
Member rises in strong support of the Silk Road Strategy Act of 1999.
In introducing this important legislation, this Member was joined by
the distinguished ranking Democrat on the Subcommittee on Asia and the
Pacific, the gentleman from California (Mr. Lantos), the distinguished
gentleman from New York (Mr. Ackerman), the distinguished gentleman
from California (Mr. Berman) and many other colleagues in the House who
were interested in and concerned about improving U.S. relations with
the countries in this vital region of the world.
Mr. Speaker, with the disintegration of the Soviet Union in 1991,
Russia became the focus of U.S. attention and heir to the vast Soviet
arsenal. Russia also retained the Soviet permanent seat on the UN
Security Council and membership now, of course, in the G-8.
A peaceful post-Soviet era largely depended on Washington's ability
to get along with Moscow. It is not surprising then that U.S.
attention, including the Freedom Support Act, was directed principally
at Moscow.
We should remember, however, that 15 countries emerged or reemerged
from the collapse of the Soviet Union. A few, the Baltics and Ukraine,
garnered special attention in the Freedom Support Act, or in the SEED
Act, which addressed Eastern Europe. But the Caucasus and Central Asia
region received scant attention.
The area includes some 75 million people in the Nations of Georgia,
Armenia, Azerbaijan, Turkmenistan, Uzbekistan, Kazakhstan, Kyrgystan
and Tajikistan.
Mr. Speaker, two points are clear as we look at the situation in
these eight countries. First, there is much at stake for our national
security. The Caucasus and the Central Asian states are strategically
located at the geographic nexus of Russia, China, Iran, Afghanistan and
Turkey. At least six are secular Islamic states that largely have
rejected the expansion of Islamic fundamentalism. They are a front-line
force in U.S. efforts to contain the spread of terrorism, the
proliferation of sensitive weapons and technologies and drug
trafficking. Rich in natural resources, these nations are a proven
storehouse of energy with vast crude oil and natural gas reserves.
Second, given the region's clear importance, it is time for the
United States to become more energetically and effectively engaged in
the region, for this area is at an historic crossroads, poised between
merging into or retreating from the free world order. It is undergoing
an uncertain and turbulent economic, political and cultural
transformation.
H.R. 1152 seeks to invigorate and provide direction to U.S. policy in
the Caucasus region and the Central Asian Republics.
First, it outlines what our foreign policy and foreign aid priorities
should be.
Second, it delineates potential rewards for continued cooperation
with the United States, as well as actions that would result in the
termination of U.S. assistance.
Third, it does not authorize new money. Instead, it redirects funding
already provided to the countries of the former Soviet Union.
Fourth, it does not address the difficult question of section 907 of
the Foreign Assistance Act, the prohibition of assistance to
Azerbaijan. Frankly, where the votes are on this issue is well-known,
and elements of this legislation are too important to subordinate to a
Section 907 debate.
The states of this region are looking to the outside for political
and economic support, to Russia and Iran and Turkey potentially, to
China and Pakistan, and even to Afghanistan, as well as to the United
States. They are actively looking to the United States for leadership
and guidance on a range of international issues and to long-standing
U.S. friends in the area, such as Israel and Turkey, for closer
relations.
At this crucial juncture in their evolution, the support the U.S.
does provide can tip the scales of these countries' orientation towards
or against the West. We have a unique opportunity to influence events
there now by adopting a broad-based and proactive policy of engagement
designed to keep conquerors away from the region, to foster cooperation
among the states, and to unleash and channel the engines of growth,
economic, social and democratic growth.
We cannot build toward these goals without the creation and use of
effective tools. This body has been at the forefront in encouraging the
formation of coherent policies for assisting the Caucasus region and
Central Asian republics and, indeed, moved the Freedom Support Act for
just this purpose.
{time} 1545
This body can and must continue legislative initiatives in this area.
This Member's proposed legislation, H.R. 1152, the Silk Road Strategy
Act of 1999, is an essential tool in building toward U.S. goals in the
region. Broadly, this bill targets U.S. assistance to support the
economic and political independence and cross-border cooperation of the
Caucasus and Central Asian states. This puts the U.S. squarely behind
efforts to, first, build democracy and cross-border cooperation as well
as resolve regional conflicts; second, to build market-oriented
economies and legal systems as well as the infrastructure to facilitate
strong East-West commerce and other relations; and, third, to promote
U.S. business interests and investments in the region.
Sustained, affordable engagement that matches U.S. ambitions with
resources is indispensable to the Caspian region's evolution in a
manner compatible with the Free World order and interests. H.R. 1152 is
an essential tool in helping to ensure that the region's political and
economic options are clear and expansive, and that the far-reaching
changes under way in the nations there will turn out to be desirable
ones.
Mr. Speaker, this Member urges his colleagues to vote in favor of
H.R. 1152, the Silk Road Strategy Act of 1999.
Mr. Speaker, I reserve the balance of my time.
Mr. HOEFFEL. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in strong support of H.R. 1152, the Silk Road
Strategy Act. I would like to start by commending the distinguished
gentleman from Nebraska (Mr. Bereuter) for his leadership on this bill.
He is the prime sponsor. He is the distinguished chair of the
Subcommittee on Asia and the Pacific, and has provided great leadership
on this.
Mr. Speaker, I also commend as well a bipartisan group of cosponsors
from the committee, including the gentleman from California (Mr.
Lantos), the gentleman from California (Mr. Berman), the gentleman from
New York (Mr. Ackerman), and the gentleman from New York (Mr. King).
Mr. Speaker, the five countries of Central Asia and the three
countries of the South Caucasus are an important part of the newly
independent States. This bill recognizes the unique interests that the
United States has in these countries.
We have a strategic interest in seeing that the region does not
become a hotbed of armed conflict, terrorism and drug trafficking, and
we have some reason to worry. Many of these countries have difficult
neighbors, including Iran, Afghanistan, and China.
The region is also rife with not only the seeds of ethnic and
political conflict, but as we have seen in Nagorno-Karabagh, with
actual conflicts that
[[Page H6788]]
have claimed tens of thousands of lives and have created hundreds of
thousands of refugees.
We have legitimate and important economic interests in Central Asia
and the Caucasus. All eight of these countries have a lot to offer in
terms of natural and human resources. There is great potential for
trade and investment and a positive exchange of people and ideas.
We have a great political interest in Central Asia and the South
Caucasus. These countries are still emerging from Soviet rule, and it
is in our interest to help them in the difficult transition away from
their communist past.
Unfortunately, many of the governments of the region have a long way
to go regarding democratization. It is our desire to engage these
countries economically and to pursue our strategic interests, but we
must not neglect the democratization that must occur there. We need to
keep democratic values and human rights at the top of the agenda in the
bilateral meetings with leaders of all eight of these countries and
need to reach out further to those within these countries that are
working to develop a civil society, including independent media, the
people in the nongovernmental sector and in private business.
It is imperative that we make sure that democratization becomes and
remains a priority of ours in this region.
Mr. Speaker, I also welcome the inclusive nature of the bill. We
recognize the fact that these countries are interrelated, there is
economic integration that is needed in this region, and that includes
all of the countries of this region. We will not see a full potential
for this region without the full participation of all eight countries.
It is our hope that these countries understand the incentive of
cooperation and make a renewed effort to solve the conflicts that have
stood in the way of a greater integration.
Similarly, because we are endorsing integration within the region,
this should not be seen as an endorsement of excluding others outside
of the region. To tap the resources of South Asia and the Caucasus to
settle these conflicts, we will need to work with others outside of the
immediate region such as Russia, Ukraine and Turkey, in order to have
the fullest possible success.
Mr. Speaker, I would like to note the administration is already
pursuing many of these policy issues called for in this bill. It is
also providing the kind of assistance authorized by this bill.
I must also note that the administration has expressed strong
reservations about two amendments attached during the committee markup.
The administration is concerned that these provisions which condition
assistance on certification of free and fair elections and the
resolution of business disputes may actually hinder progress on
achieving those goals which are goals that we all share. If these
issues are not resolved during the conference, it may jeopardize
administration support for the final version of this bill.
Mr. Speaker, it is my view and our view that this bill is helpful;
that it focuses attention on the region, makes a call for a renewed
push on solving regional conflicts promoting regional integration and
democratization. I urge all of the Members of the House to support this
bill, H.R. 1152.
Mr. Speaker, I reserve the balance of my time.
Mr. BEREUTER. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I first want to thank the distinguished gentleman from
Pennsylvania (Mr. Hoeffel), a first-term member of the Committee on
International Relations, who is making a major contribution there, for
his kind remarks and for his support. I recall well how the gentleman
came up to me after the markup and pointed out something that we
mutually agreed was a problem, and we have a way outlined to resolve it
and I think to meet the administration's satisfaction. It was one of
those things that we recognized, but at the moment we could not do
anything about. Mr. Speaker, I want to thank the gentleman for his
perceptiveness in that respect.
Mr. Speaker, at this point I submit for the Record a statement in
support of the legislation from the gentleman from New York (Mr.
Gilman), the chairman of the committee.
Mr. Speaker, the gentleman indicates, for example, that he believes
this legislation will serve as a signal to the peoples of those
countries of America's desire to ensure that their future will be one
of democracy, prosperity, peace and security.
Mr. GILMAN. Mr. Speaker, I rise in support of the bill before us
today, H.R. 1152, the ``Silk Road Strategy Act of 1999,'' sponsored by
my colleagues from Nebraska, Congressman Bereuter.
The Subcommittee on the International Relations Committee chaired by
Congressman Bereuter--the Subcommittee on Asia and the Pacific--has
jurisdiction over the countries of Central Asia, but the countries of
the Caucasus region--also covered by this bill--deserve to be a
specific focus of our policy and assistance in the region of the former
Soviet Union as well.
This bill, which relates to all eight countries of Central Asia and
the Caucasus, attempts to ensure the implementation of that specific
focus.
While it creates a new Chapter 12 of the Foreign Assistance Act to
provide that focus, however, it cites, with regard to those countries,
the on-going authority of Chapter 11 of that Act--known as the
``FREEDOM Support Act of 1992.''
I think that it is very important, given the key work done by the
office of the State Department Coordinator of Assistance created by the
1992 ``FREEDOM Support Act.''
Nothing in this measure should or will endanger that important
coordinating function for all of the New Independent States of the
former Soviet Union.
The bill simply ensures that an added, specific focus on the states
of Central Asia and the Caucasus.
Mr. Speaker, I support passage of this measure, which should serve as
a signal of America's interest in the future of the eight newly
independent states in the regions of Central Asia and the Caucasus.
It should serve as well as a signal to the peoples of those countries
of America's desire to ensure that their future will be one of
democracy, prosperity, peace and security.
Mr. Speaker, I urge my colleagues to join in supporting the passage
of this measure.
Mr. BEREUTER. Mr. Speaker, I yield to the distinguished gentleman
from California (Mr. Radanovich) for the purposes of a colloquy. And I
would say as we begin this that the gentleman has been very much
interested and concerned about this legislation and supportive overall
and came to the committee hearings and participated in those hearings.
Mr. Speaker, this distinguished gentleman from California is a new
member of the committee.
Mr. RADANOVICH. Mr. Speaker, I thank the gentleman from Nebraska (Mr.
Bereuter) for his leadership in bringing this bill to the floor. I
share the gentleman's vision in promoting greater regional cooperation,
supporting increased economic integration, and facilitating the free
flow of transportation and communication among the States of the
Caucasus and Central Asia.
While I support these goals, I along with many of my colleagues,
remain concerned that this legislation may, at a subsequent step in the
legislative process, become a vehicle for the weakening or the repeal
of Section 907 of the Freedom Support Act.
Mr. Speaker, it is my understanding that this bill is being brought
forth today with the clear understanding that Section 907 of the
Freedom Support Act will remain in place and unchanged throughout the
remaining legislative process.
Mr. BEREUTER. Mr. Speaker, reclaiming my time, I will be happy to
respond to the gentleman's statement. I am pleased that the gentleman
has joined the Committee on International Relations this year, and as
my colleague knows, this Member, the author of the legislation, has
made it a point to ensure that the Silk Road Strategy Act intentionally
did not include any change in Section 907. Neither the Senate version
of the Silk Road legislation which was advanced after amendment,
repeals or otherwise revises Section 907. So there would be no basis in
a conference, with the approval of this legislation we pass in the
House today, for Section 907 to be repealed or altered. Therefore, I
think the gentleman's concerns are fully addressed.
Neither the House, by the passage of this legislation, or the Senate
legislation, after the amendment deleting the provision of the senior
Senator of the State of Kansas, contains anything referencing Section
907.
Mr. RADANOVICH. Mr. Speaker, if the gentleman would continue to
yield,
[[Page H6789]]
I thank him for his continued support on this matter. With this
assurance, my colleagues and I will feel much more confident in
supporting this bill.
Mr. BEREUTER. Mr. Speaker, I reserve the balance of my time.
Mr. PORTER. Mr. Speaker, I rise in support of this legislation and
commend the gentleman from Nebraska for his strategy with this bill and
attention to current events in Caucuses region. Since 1923, Armenia and
Azerbaijan have been in conflict over Nagorno-Karabagh. In the
beginning of this year, Armenia and Nagorno-Karabagh accepted a
compromise peace proposal developed by the Organization for Security
and Cooperation in Europe (OSCE). Azerbaijan rejected it outright. This
reaction by Azerbaijan was extremely disappointing to those involved in
the peace process. However, at the NATO summit in Washington in April
and in recent weeks, the Presidents of Armenia and Azerbaijan have been
discussing other strategies for peace. This is very promising, and I
hold out hope for a permanent peace in this area.
The most important role that the United States can play at this point
is to continue to encourage all parties towards a lasting peace. This
includes the continued enforcement of Section 907 of the Freedom
Support Act. This provision keeps needed pressure on Azerbaijan to come
to the negotiating table and works toward a permanent peace settlement.
All Azerbaijan must do to have Section 907 lifted is to ``take
demonstrable steps to cease all blockades against Armenia and Nagorno-
Karabagh.'' Any attempt to repeal or waive Section 907 legitimizes
Azerbaijan's blockade and rewards its rejection of the current OSCE
compromise plan. Further, such a waiver would seriously jeopardize any
chance for peace in the near future.
While I share a commitment to greater regional cooperation and
economic integration in the Caucasus and Central Asia, I am very
concerned that this legislation could become a vehicle for the
weakening or repeal of Section 907. I would strongly oppose such action
and urge the House to retain its position omitting any reference to
Section 907 in conference and avoid a contentious debate that could
undermine the good and important objectives of this legislation.
Mr. LANTOS. Mr. Speaker, I join my colleagues in urging the adoption
of H.R. 1152, the Silk Road Strategy Act of 1999. I want to pay tribute
to my distinguished colleague from Nebraska (Mr. Bereuter) for his
leadership in introducing this legislation. I am pleased to be an
original cosponsor of this legislation.
The Silk Road Strategy Act deals with a number of newly-emerging
countries, which only recently became independent nations--the Central
Asian republics of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan,
and Uzbekistan and the Southern Caucasus republics of Armenia,
Azerbaijan, and Georgia.
Mr. Speaker, this legislation calls for the United States to give
greater attention to the important countries of Central Asia and the
Caucasus. We have significant national concerns in this region related
to our national security and our international economic interests.
These countries were part of the former Soviet Union, and we have a
great interest in fostering democracy, an open market economy, and
respect for human rights there. Many of these countries are resource-
rich, and we likewise have a strong interest in assuring that oil, gas,
and other natural resources are developed and are available on the
world markets through free and fair international trade.
We have a strategic interest in seeing that these areas do not become
hotbeds of armed conflict, terrorism or drug trafficking. These
countries are located in a difficult neighborhood--the adjacent
countries include Iran, Afghanistan, and China. In this area are a
number of serious ethnic conflicts and unresolved political differences
which could lead to bloodshed and instability. We need only remember,
Mr. Speaker, that in this region we have already seen serious strife in
Nagorno-Karabakh and Abkhazia, which have resulted in the loss of tens
of thousands of lives and the creation of hundreds of thousands of
refugees.
Mr. Speaker, H.R. 1152 authorizes and urges that we provide
humanitarian assistance, as well as help for economic development and
the development of democratic institutions. These countries are already
eligible for other forms of U.S. assistance, but we can and should be
doing more. I would also note, Mr. Speaker, that the Administration is
currently pursuing many of the policy lines that are called for in this
bill, and I commend the Administration for its efforts in this regard.
I support this legislation because it helps to focus attention on this
important region and urges our government to make a greater effort to
help solve regional conflicts, promote regional economic development,
and further the development of democracy.
Mr. Speaker, I do want to express my support for an amendment adopted
during the markup of this legislation in the International Relations
Committee. American companies and firms from other OECD nations have
made substantial direct investments in ``Silk Road'' countries, but
they are not being accorded fair treatment. In some cases investment
contracts are not being honored, export permits are not being issued,
and de facto rationalizations of foreign investment have taken place.
In several instances, formal complaints have been lodged by investors
through embassies of the United States and other countries.
In order to discourage this kind of mistreatment, the International
Relations Committee amended the legislation to include language
conditioning U.S. assistance on the fair treatment of foreign
investors. Specifically, the amendment requires recipient governments
to demonstrate ``significant progress'' in resolving investment and
other trade disputes that have been registered with the U.S. Embassy
and raised by the U.S. Embassy with the host government.
I cosponsored this amendment in Committee and I support its inclusion
in the bill, Mr. Speaker, because without it the Silk Road Strategy Act
could lead countries in this region to conclude that they have a green
light to renege on commitments to foreign investors, jeopardizing
hundreds of millions of dollars of foreign investments. The inclusion
of this amendment should send a strong signal that countries cannot
expect to receive American assistance if they mistreat the companies
that provide critical investment capital and employment opportunities
for their own citizens.
Mr. Speaker, I urge my colleagues to support H.R. 1152, the Silk Road
Act of 1999.
Mr. HOEFFEL. Mr. Speaker, I have no requests for time, and I yield
back the balance of my time.
Mr. BEREUTER. Mr. Speaker, I urge again support of the legislation,
and I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Nebraska (Mr. Bereuter) that the House suspend the rules
and pass the bill, H.R. 1152, as amended.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
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