[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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