[..Thomas, again....Doug, the check's in the mail :-) ] THE SILK ROAD STRATEGY ACT OF 1997, H.R. 2867 -- HON. BENJAMIN A. GILMAN (Extension of Remarks - November 08, 1997) ---------------------------------------------------------------------- ---------- [Page: E2240] GPO's PDF --- HON. BENJAMIN A. GILMAN in the House of Representatives FRIDAY, NOVEMBER 7, 1997 Mr. GILMAN. Mr. Speaker, I am today introducing the Silk Road Strategy Act of 1997 (H.R. 2867), a measure designed to focus American diplomatic and commercial attention, as well as American foreign assistance, on the important regions of the Caucasus and Central Asia. The name Silk Road is an ancient one, referring to the East-West trade route that for so long linked China and other countries in East Asia with Italy and other countries in West Europe. The countries of the Caucasus and Central Asian regions, through which travelers on the Silk Road passed, fell victim to conflict and repression as the Russian tsars pushed south and then were replaced by the brutal dictatorship of the Bolshevik Commissars. For over seven decades the eight countries of these two regions--Georgia, Armenia, Azerbaijan, Uzbekistan, Turkmenistan, Tajikistan, Kyrgyzstan and Kazakhstan--were sealed behind the Iron Curtain, unable to move forward toward democracy and commercial prosperity with the rest of Europe and Asia. Ironically, the resources to fuel such progress lay just under the surface, in the form of vast gas and oil reserves. Mr. Speaker, the peoples of the Caucasus and Central Asia now face the challenge of rebuilding their links to Europe and Asia, and we in the United States have a national interest to help them overcome the obstacles that lay in the way of resurrecting the old Silk Road. Regrettably, these countries lie between Russia, Iran, Afghanistan and China. In Russia, they face a country that seems intent on forcing them to stay within its sphere of dominance. In Iran, they face a fundamental Islamic regime that seeks to use them to thwart efforts led by the United States to isolate Iran until it forsakes its support for international terrorism--and an Iran that hopes to forment fundamentalist Islam from Azerbaijan to the borders of China. In Afghanistan , these countries face a country in turmoil--and a violence they fear could spread northward. Finally, in China they face the world's most populous nation, controlled by a brutal Communist regime that is looking hungrily to the energy reserves and natural resources of these thinly populated countries to fuel its industrial and technological expansion in the 21st century. What is the American interest in these two far-flung regions? First, we want to see democratic government take root in these states. Stability in these regions and in the broader Eurasian region may well depend on the successful consolidation of democratic governance in these states over the next decade or two, frankly, there is a lot of work ahead of us in that regard, Second, we want to defuse the current ethnic conflicts that are destabilizing the two regions, and that are providing neighboring states, such as Iran, the leverage to gain these countries' cooperation in major commercial endeavors, such as energy export pipelines. Finally, just as it is in America's interest to help these countries open up a window to the West to lessen their manipulation by their larger neighbors, it is in America's interest to see the energy reserves of the two regions opened up to the West. As my colleagues well know, our United States military forces face an increasingly difficult task in ensuring our continued access to the energy reserves of the Persian Gulf. We need to encourage the development of other sources of oil and gas as we enter the next century to lessen our dependence on their Persian Gulf as Iran and Iraq seek to manipulate that dependence. The reserves of the Caucasus and Central Asian regions do not compare with those of the Persian Gulf, but they are indeed vast, and we should look for ways to get pipelines out to the West--avoiding routes through countries, such as Russia and Iran, that may have a geopolitical interest to choke off those pipelines at some point in the future. Mr. Speaker, I invite my colleagues to join me in sponsoring this bill, H.R. 2867, a measure that, if enacted, would target our diplomatic attention and foreign assistance on these increasingly important regions. [Page: E2241] GPO's PDF Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the `Silk Road Strategy Act of 1997'. SEC. 2. FINDINGS. Congress makes the following findings: (1) The ancient Silk Road, once the economic lifeline of Central Asia and the South Caucasus, traversed much of the territory now within the countries of Armenia, Azerbaijan, Georgia, Kazakstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. (2) Economic interdependence spurred mutual cooperation among the peoples along the Silk Road and restoration of the historic relationships and economic ties between those peoples is an important element of ensuring their sovereignty as well as the success of democratic and market reforms. (3) The development of strong political and economic ties between countries of the South Caucasus and Central Asia and the West will foster stability in the region. (4) The development of open market economies and open democratic systems in the countries of the South Caucasus and Central Asia will provide positive incentives for international private investment, increased trade, and other forms of commercial interactions with the rest of the world. (5) The Caspian Sea Basin, overlapping the territory of the countries of the South Caucasus and Central Asia, contains proven oil and gas reserves that may exceed $4,000,000,000,000 in value. (6) The region of the South Caucasus and Central Asia will produce oil and gas in sufficient quantities to reduce the dependence of the United States on energy from the volatile Persian Gulf region. (7) United States foreign policy and international assistance should be narrowly targeted to support the economic and political independence of the countries of the South Caucasus and Central Asia. SEC. 3. POLICY OF THE UNITED STATES. It shall be the policy of the United States in the countries of the South Caucasus and Central Asia-- (1) to promote and strengthen independence, sovereignty, and democratic government; (2) to assist actively in the resolution of regional conflicts; (3) to promote friendly relations and economic cooperation; (4) to help promote market-oriented principles and practices; (5) to assist in the development of the infrastructure necessary for communications, transportation, and energy and trade on an East-West axis in order to build strong international relations and commerce between those countries and the stable, democratic, and market-oriented countries of the Euro-Atlantic Community; and (6) to support United States business interests and investments in the region. SEC. 4. UNITED STATES EFFORTS TO RESOLVE CONFLICTS IN GEORGIA, AZERBAIJAN, AND TAJIKISTAN. It is the sense of Congress that the President should use all diplomatic means practicable, including the engagement of senior United States Government officials, to press for an equitable, fair, and permanent resolution to the conflicts in Georgia and Azerbaijan and the civil war in Tajikistan. SEC. 5. AMENDMENT OF THE FOREIGN ASSISTANCE ACT OF 1961. Part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) is amended by adding at the end the following new chapter: `Chapter 12--Support for the Economic and Political Independence of the Countries of the South Caucasus and Central Asia `SEC. 499. UNITED STATES ASSISTANCE TO PROMOTE RECONCILIATION AND RECOVERY FROM REGIONAL CONFLICTS. `(a) Purpose of Assistance: The purposes of assistance under this section are-- `(1) to create the basis for reconciliation between belligerents; `(2) to promote economic development in areas of the countries of the South Caucasus and Central Asia impacted by civil conflict and war; and `(3) to encourage broad regional cooperation among countries of the South Caucasus and Central Asia that have been destabilized by internal conflicts. `(b) Authorization for Assistance: `(1) In general: To carry out the purposes of subsection (a), the President is authorized to provide humanitarian assistance and economic reconstruction assistance under this Act, and assistance under the Migration and Refugee Assistance Act of 1962 (22 U.S.C. 2601 et seq.), to the countries of the South Caucasus and Central Asia to support the activities described in subsection (c). `(2) Definition of humanitarian assistance: In this subsection, the term `humanitarian assistance' means assistance to meet urgent humanitarian needs, in particular meeting needs for food, medicine, medical supplies and equipment, and clothing. `(c) Activities Supported: Activities that may be supported by assistance under subsection (b) are limited to-- `(1) providing for the essential needs of victims of the conflicts; `(2) facilitating the return of refugees and internally displaced persons to their homes; and `(3) assisting in the reconstruction of residential and economic infrastructure destroyed by war. `(d) Policy: It is the sense of Congress that the United States should, where appropriate, support the establishment of neutral, multinational peacekeeping forces to implement peace agreements reached between belligerents in the countries of the South Caucasus and Central Asia. `SEC. 499A. ECONOMIC ASSISTANCE. `(a) Purpose of Assistance: The purpose of assistance under this section is to foster the conditions necessary for regional economic cooperation in the South Caucasus and Central Asia. `(b) Authorization for Assistance: To carry out the purpose of subsection (a), the President is authorized to provide technical assistance to the countries of the South Caucasus and Central Asia to support the activities described in subsection (c). `(c) Activities Supported: Activities that may be supported by assistance under subsection (b) are limited to the development of the structures and means necessary for the growth of private sector economies based upon market principles. `(d) Policy: It is the sense of Congress that the United States should-- `(1) assist the countries of the South Caucasus and Central Asia to develop laws and regulations that would facilitate the ability of those countries to join the World Trade Organization; `(2) provide permanent nondiscriminatory trade treatment (MFN status) to the countries of the South Caucasus and Central Asia; and `(3) consider the establishment of zero-to-zero tariffs between the United States and the countries of the South Caucasus and Central Asia. `SEC. 499B. DEVELOPMENT OF INFRASTRUCTURE. `(a) Purpose of Assistance: The purposes of assistance under this section are-- `(1) to develop the physical infrastructure necessary for regional cooperation among the countries of the South Caucasus and Central Asia; and `(2) to encourage closer economic relations between those countries and the United States and other developed nations. `(b) Authorization for Assistance: To carry out the purposes of subsection (a), the following types of assistance to the countries of the South Caucasus and Central Asia are authorized to support the activities described in subsection (c): `(1) Activities by the Export-Import Bank to complete the review process for eligibility for financing under the Export-Import Bank Act of 1945. `(2) The provision of insurance, reinsurance, financing, or other assistance by the Overseas Private Investment Corporation. `(3) Assistance under section 661 of this Act (relating to the Trade and Development Agency). `(c) Activities Supported: Activities that may be supported by assistance under subsection (b) are limited to promoting actively the participation of United States companies and investors in the planning, financing, and construction of infrastructure for communications, transportation, and energy and trade including highways, railroads, port facilities, shipping, banking, insurance, telecommunications networks, and gas and oil pipelines. `(d) Policy: It is the sense of Congress that the United States representatives at the International Bank for Reconstruction and Development, the International Finance Corporation, and the European Bank for Reconstruction and Development should encourage lending to the countries of the South Caucasus and Central Asia to assist the development of the physical infrastructure necessary for regional economic cooperation. [Page: E2242] GPO's PDF `SEC. 499C. SECURITY ASSISTANCE. `(a) Purpose of Assistance: The purpose of assistance under this section is to assist countries of the South Caucasus and Central Asia to secure their borders and implement effective controls necessary to prevent the trafficking of illegal narcotics and the proliferation of technology and materials related to weapons of mass destruction (as defined in section 2332a(c)(2) of title 18, United States Code), and to contain and inhibit transnational organized criminal activities. `(b) Authorization for Assistance: To carry out the purpose of subsection (a), the President is authorized to provide the following types of assistance to the countries of the South Caucasus and Central Asia to support the activities described in subsection (c): `(1) Assistance under chapter 5 of part II of this Act (relating to international military education and training). `(2) Assistance under chapter 8 of this part of this Act (relating to international narcotics control assistance). `(3) The transfer of excess defense articles under section 516 of this Act (22 U.S.C. 2321j). `(c) Activities Supported: Activities that may be supported by assistance under subsection (b) are limited to assisting those countries of the South Caucasus and Central Asia in developing capabilities to maintain national border guards, coast guard, and customs controls. `(d) Policy: It is the sense of Congress that the United States should encourage and assist the development of regional military cooperation among the countries of the South Caucasus and Central Asia through programs such as the Central Asian Battalion and the Partnership for Peace of the North Atlantic Treaty Organization. `SEC. 499D. STRENGTHENING DEMOCRACY, TOLERANCE, AND THE DEVELOPMENT OF CIVIL SOCIETY. `(a) Purpose of Assistance: The purpose of assistance under this section is to promote institutions of democratic government and to create the conditions for the growth of pluralistic societies, including religious tolerance. `(b) Authorization for Assistance: To carry out the purpose of subsection (a), the President is authorized to provide the following types of assistance to the countries of the South Caucasus and Central Asia. `(1) Technical assistance for democracy building. `(2) Technical assistance for the development of nongovernmental organizations. `(3) Technical assistance for development of independent media. `(4) Technical assistance for the development of the rule of law. `(5) International exchanges and advanced professional training programs in skill areas central to the development of civil society. `(c) Activities Supported: Activities that may be supported by assistance under subsection (b) are limited to activities that directly and specifically are designed to advance progress toward the development of democracy. `(d) Policy: It is the sense of Congress that the Voice of America and RFE/RL, Incorporated, should maintain high quality broadcasting for the maximum duration possible in the native languages of the countries of the South Caucasus and Central Asia. `SEC. 499E. INELIGIBILITY FOR ASSISTANCE. `(a) In General: Except as provided in subsection (b), assistance may not be provided under this chapter for a country of the South Caucasus or Central Asia if the President determines and certifies to the appropriate congressional committees that the country-- `(1) is engaged in a consistent pattern of gross violations of internationally recognized human rights; `(2) has, on or after the date of enactment of this chapter, knowingly transferred to another country-- `(A) missiles or missile technology inconsistent with the guidelines and parameters of the Missile Technology Control Regime (as defined in section 11B(c) of the Export Administration Act of 1979 950 U.S.C. App. 2410b(c); or `(B) any material, equipment, or technology that would contribute significantly to the ability of such country to manufacture any weapon of mass destruction (including nuclear, chemical, and biological weapons) if the President determines that the material, equipment, or technology was to be used by such country in the manufacture of such weapons; `(3) has supported acts of international terrorism; `(4) is prohibited from receiving such assistance by chapter 10 of the Arms Export Control Act or section 306(a)(1) and 307 of the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 (22 U.S.C. 5604(a)(1), 5605); or `(5) has initiated an act of aggression against another state in the region after the date of enactment of the Silk Road Strategy Act of 1997. `(b) Exception to Ineligibility: Notwithstanding subsection (a), assistance may be provided under this chapter if the President determines and certifies in advance to the appropriate congressional committees that the provision of such assistance is important to the national interest of the United States. `SEC. 499F. ADMINISTRATIVE AUTHORITIES. `(a) Assistance Through Governments and Nongovernmental Organizations: Assistance under this chapter may be provided to governments or through nongovernmental organizations. `(b) Use of Economic Support Funds: Except as otherwise provided, any funds that have been allocated under chapter 4 of part II for assistance for the independent states of the former Soviet Union may be used in accordance with the provisions of this chapter. `(c) Terms and Conditions: Assistance under this chapter shall be provided on such terms and conditions as the President may determine. `(d) Superseding Existing Law: The authority to provide assistance under this chapter supersedes any other provision of law, except for-- `(1) this chapter; `(2) section 634A of this Act and comparable notification requirements contained in sections of the annual foreign operations, export financing, and related programs Act; `(3) section 907 of the Freedom for Russia and Emerging Eurasian Democracies and Open Markets Support Act of 1992 (22 U.S.C. 5812 note; relating to restriction on assistance to Azerbaijan), except such section shall not apply with respect to-- `(A) activities to provide humanitarian assistance under the Migration and Refugee Assistance Act of 1962 (22 U.S.C. 2601 et seq.); `(B) activities to support democratic reforms and democratic governance; `(C) assistance for the control of narcotic and psychotropic drugs and other controlled substances, or for other anticrime purposes, under section 481(a)(4) of this Act (22 U.S.C. 2291(a)(4));
