[Congressional Record Volume 152, Number 52 (Thursday, May 4, 2006)]
[Senate]
[Pages S4072-S4073]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BROWNBACK (for himself, Mr. Kyl and Mrs. Hutchison):
  S. 2749. A bill to update the Silk Road Strategy Act of 1999 to 
modify targeting of assistance in order to support the economic and 
political independence of the countries of Central Asia and the South 
Caucasus in recognition of political and economic changes in these 
regions since enactment of the original legislation; to the Committee 
on Foreign Relations.
  Mr. BROWNBACK. Mr. President, I rise to introduce the Silk Road 
Strategy Act of 2006. Joining me as original cosponsors are Senators 
Kyl and Hutchison. I would like to extend my thanks to both of my 
colleagues and their staff for their assistance and guidance on many of 
the provisions in the bill.
  The original Silk Road Strategy Act of 1999 saw the countries of the 
Caucasus and Central Asia--specifically, Armenia, Azerbaijan, Georgia, 
Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan--as a 
distinct region bound by history and common interests with a shared 
potential that was of critical importance to the United States.
  The goals of that legislation were as follows: to promote 
independent, democratic government; to promote the protection of human 
rights, tolerance, and pluralism; to aid in the resolution of conflicts 
and support political, economic, and security cooperation in order to 
foster regional stability and economic interdependence; to promote 
financial and economic development based on market principles; to aid 
in the development of communications, transportation, health and human 
services infrastructure; to promote and protect the interests of U.S. 
businesses and investments.
  These basic policy goals have not changed; however, historic events 
since 1999 have had a significant impact on the region's political 
systems, economic conditions, and security situation which affect U.S. 
perceptions of and interests in the region. These changes include: the 
September 11, 2001 terrorist attack on the United States, which 
clarified the nature and source of the key threats facing this country; 
the Operation Enduring Freedom in Afghanistan and the removal of the 
Taliban regime; the series of ``colored revolutions'' in Georgia, 
Ukraine and Kyrgyzstan; Deteriorating relations between the U.S. and 
certain regional leaders, especially Uzbekistan's President Islam 
Karimov, and the closure of the U.S. base in that country; the growing 
influence of regional powers, namely Russia and China; greater U.S. oil 
and gas interests in the Caspian region; and the threat posed by Iran, 
which is seeking to develop a nuclear potential.

  In light of these changes, the Silk Road Act needs to be updated and 
revised to better address some of the new challenges the U.S. faces in 
its relations with Central Asia and the Caucasus.
  The U.S.'s vital interests in the Caspian region include: ensuring 
the independence and security of Azerbaijan and Georgia, through which 
critical oil and gas pipelines transit; containing Iran; ensuring 
access to oil and gas reserves; maintaining good relations with 
Kazakhstan; promoting peaceful resolution of conflicts; and keeping 
Russian geopolitical ambitions in check.
  Further East, U.S. interests include: helping Kyrgyzstan to make its 
Tulip Revolution a success; the political stabilization of Afghanistan 
and enhancement of its security by defeating the Taliban and Al Qaeda 
and its satellite organizations; political reform and liberalization in 
the countries of Central Asia to neutralize radical Islamic movements, 
such as Hizb-ut- Tahrir al-Islami, HUT--Islamic Army of Liberation; 
reduction of drug production and exports; creation and/or support of 
the U.S. military base network; and social and economic development in 
the states of Central Asia.
  To these ends, among other priorities, this bill emphasizes the 
importance of East-West gas and oil pipelines, such as the Baku-
Tbilisi-Ceyhan pipeline, BTC. BTC ensures Azerbaijan's security and 
economic future, and binds the country with neighboring Georgia and 
Turkey, anchoring Azerbaijan in the network of Western states and 
institutions.
  The bill also includes Afghanistan as a Silk Road country and 
promotes the integration of Afghanistan with neighboring Central Asian 
states in terms of security, trade, infrastructure and energy grids.
  In all the states of Central Asia and the Caucasus, it is critical to 
promote democratic development. Among this bill's initiatives are calls 
for supporting independent media outlets, especially electronic media, 
and also for satellite TV programming, to provide authoritative news 
and more diverse opinions than are otherwise available. Specifically, 
it supports satellite TV broadcasting into Uzbekistan, Turkmenistan and 
Iran and the activities of their diasporas in the United States. 
Furthermore, the bill offers assistance for the establishment of civil 
service institutes to train civil servants at all levels in the rule of 
law, conduct of elections, respect for citizens' rights, and the needs 
of a market economy.
  No less important is the need to accelerate and broaden economic 
reform and modernization in the Silk Road countries. Accordingly, this 
bill provides assistance in the privatization of state enterprises and 
deregulation of the economy.
  The bill also calls for assistance with the establishment of the 
Caspian Bank of Reconstruction and Development, CBRD, to help Silk Road 
states address problems caused by increased revenues from energy 
exports, and dangers to macroeconomic stability and overheating of the 
economy infrastructure, as well as promote development in the region.
  In light of Trans-Caspian Oil and Gas Pipelines, this bill encourages 
the governments of Azerbaijan, Kazakhstan and especially Turkmenistan 
to improve their business climate and investor confidence by fully 
disclosing their internationally audited hydrocarbon reserve.
  The bill strongly supports activities that promote the participation 
of U.S. 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.
  Furthermore, the bill would assist in the removal of legal and 
institutional barriers to continental and regional trade and the 
harmonization of border and tariff regimes, including improved 
mechanisms for transit through Pakistan to Afghanistan and the rest of 
Central Asia.

[[Page S4073]]

  With respect to the World Trade Organization, the bill offers support 
to Silk Road countries seeking WTO accession, providing assistance in 
reform as needed. Recognizing that PNTR status, through graduation from 
the Jackson-Vanik Amendment of 1974 Trade Act, and WTO membership have 
been extended to Armenia, Georgia and Kyrgyzstan, the bill calls for 
extending the same status to the other two most advanced economies of 
the region, Azerbaijan and Kazakhstan, by graduating them from the 
Jackson-Vanik Amendment, extending PNTR status and aiding in WTO 
accession. But before that support is offered, it is important for the 
two countries to demonstrate that they are capable of dealing with the 
demands of a vibrant economy in a democratic setting.
  A detailed examination of this bill will reveal many more 
initiatives. But as you can see, Mr. President, the Silk Road Strategy 
Act of 2006 takes a comprehensive approach to the region, encompassing 
security, economic development, democratic governance and human rights. 
I believe it targets the key issues that U.S. policymakers must address 
in our ever more important effort to establish solid, long-lasting 
relationships with the countries of the Silk Road. I hope my colleagues 
will support this bill and I look forward to discussing it with them.
                                 ______