United States-Caucasus Policy Act of 1997

Summary: United States-Caucasus Policy Act of 1997 - Amends the Foreign Assistance Act of 1961 to authorize specified assistance, including humanitarian, economic, migration and refugee, development, security, and technical assistance, to the countries of the South Caucasus (Armenia, Azerbaijan, and Georgia) and of Central Asia (Kazakstan, Kyrgystan, Tajikistan, Turkmenistan, and Uzbekistan) to:  (1) promote sovereignty and independence, democratic government, and respect for human rights; (2) assist in the resolution of regional conflicts and re-opening of closed borders; (3) promote economic cooperation and market-oriented principles; (4) assist in the development of infrastructure necessary for communications, transportation, and energy and trade on an East-West axis in order to build strong relations and commerce between those countries and the democratic, market-oriented countries of the Euro-Atlantic community; and (5) support U.S. business interests and investments in the region. 
(Sec. 4) Expresses the sense of the Congress that the President should use all diplomatic means to press for an equitable, fair, and permanent resolution to the conflict in Nagorno-Karabakh (Armenia and Azerbaijan) and other regional conflicts. 
(Sec. 5) Declares 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. 
Declares the sense of the Congress that the United States should:  (1) assist the countries of the South Caucasus 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 (most-favored-nation status) to such countries; and (3) consider the establishment of zero-to-zero tariffs between them and the United States. 
Declares the sense of the Congress that the U.S.  representatives to the World Bank, the International Monetary Fund, and the European Bank for Reconstruction and Development should encourage lending to the countries of the South Caucasus to assist the development of the physical infrastructure necessary for regional economic cooperation. 
Declares 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 through programs such as the Central Asian Battalion and the Partnership for Peace of the North Atlantic Treaty Organization. 
Declares the sense of the Congress that the Voice of America and Radio Free Europe-Radio Liberty should maintain high quality broadcasting for the maximum duration possible in the native languages of the countries of the South Caucasus. 
Prohibits, unless important to the U.S. national interest, assistance to such countries if the President determines and certifies to the appropriate congressional committees that they:  (1) are engaged in a consistent pattern of gross violations of internationally recognized human rights; (2) have established any border closure or use of an economic blockade; (3) have knowingly transferred controlled missile or missile technology to another country, or any equipment or technology that would contribute to the ability of such country to manufacture weapons of mass destruction (including nuclear, chemical, and biological weapons); (4) have supported acts of international terrorism; (5) are prohibited from receiving such assistance by specified Acts; or (6) have initiated an act of aggression against another state in the region. 
(Sec. 6) Directs the President to report annually to appropriate congressional committees.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``United States-Caucasus Policy Act of 
1997''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The newly independent countries of the South Caucasus 
        region, Armenia, Georgia, and Azerbaijan, after decades of 
        domination as part of the Soviet Union, have charted a new 
        course as independent, sovereign nations.
            (2) Economic interdependence spurred mutual cooperation 
        among the peoples of the Caucasus 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 the West will 
        foster stability in the region.
            (4) The development of open market economies, open 
        democratic systems, and the removal of all blockades and border 
        closures in the countries of the South Caucasus 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 
        significant oil and gas reserves.
            (6) The region of the South Caucasus and the neighboring 
        region of Central Asia may 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 support democracy-building, free-market 
        policies, human rights, and regional economic integration among 
        the countries of the South Caucasus.

SEC. 3. POLICY OF THE UNITED STATES.

    It shall be the policy of the United States in the countries of the 
South Caucasus--
            (1) to promote and strengthen independence, sovereignty, 
        democratic government, and respect for human rights;
            (2) to assist actively in the resolution of regional 
        conflicts and the lifting of all blockades and re-opening of 
        closed borders;
            (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 AND 
              AZERBAIJAN.

    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 acceptable to all parties to the conflict in 
Nagorno-Karabakh and other regional conflicts.

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

``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 
        conflicting parties;
            ``(2) to promote economic development in areas of the 
        countries of the South Caucasus impacted by civil conflict and 
        war; and
            ``(3) to encourage broad regional cooperation among 
        countries of the South Caucasus 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 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 and other individuals in need throughout the South 
        Caucasus region, including all individuals residing in any area 
        of such 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.

``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.
    ``(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 to support the 
activities described in subsection (c).
    ``(c) Activities Supported.--Activities that may be supported by 
assistance under subsection (b)--
            ``(1) shall be limited to the development of the structures 
        and means necessary for the growth of private sector economies 
        based upon market principles; and
            ``(2) shall not include assistance that jeopardizes or 
        otherwise interferes with the ongoing efforts to resolve the 
        conflicts in the South Caucasus region.
    ``(d) Policy.--It is the sense of Congress that the United States 
should--
            ``(1) assist the countries of the South Caucasus 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
            ``(3) consider the establishment of zero-to-zero tariffs 
        between the United States and the countries of the South 
        Caucasus.

``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
            ``(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 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)--
            ``(1) shall be 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; and
            ``(2) shall not include assistance that jeopardizes or 
        otherwise interferes with the ongoing efforts to resolve the 
        conflicts in the South Caucasus region.
    ``(d) Policy.--It is the sense of Congress that the United States 
representatives at the World Bank, the International Monetary Fund, and 
the European Bank for Reconstruction and Development should encourage 
lending to the countries of the South Caucasus to assist 
the development of the physical infrastructure necessary for regional 
economic cooperation.

``SEC. 499C. SECURITY ASSISTANCE.

    ``(a) Purpose of Assistance.--The purpose of assistance under this 
section is to assist countries of the South Caucasus 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 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)--
            ``(1) shall be limited to assisting those countries of the 
        South Caucasus in developing capabilities to maintain national 
        border guards, coast guard, and customs controls; and
            ``(2) shall not include assistance that jeopardizes or 
        otherwise interferes with the ongoing efforts to resolve the 
        conflicts in the South Caucasus region.
    ``(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 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.
            ``(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.

``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 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 established any border closure or use of an 
        economic or commercial blockade;
            ``(3) 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;
            ``(4) has supported acts of international terrorism;
            ``(5) 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
            ``(6) has initiated an act of aggression against another 
        state or ethnic population in the region.
    ``(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); and
            ``(4) section 1341 of title 31, United States Code 
        (commonly referred to as the ``Anti-Deficiency Act''), the 
        Congressional Budget and Impoundment Control Act of 1974, the 
        Balanced Budget and Emergency Deficit Control Act of 1985, and 
        the Budget Enforcement Act of 1990.

``SEC. 499G. DEFINITIONS.

    ``In this chapter:
            ``(1) Appropriate congressional committees.--The term 
        `appropriate congressional committees' means the Committee on 
        Foreign Relations of the Senate and the Committee on 
        International Relations of the House of Representatives.
            ``(2) Countries of the south caucasus.--The term `countries 
        of the South Caucasus' means Armenia, Azerbaijan, and 
        Georgia.''.

SEC. 6. ANNUAL REPORT.

    Beginning one year after the date of enactment of this Act, and 
annually thereafter, the President shall submit a report to the 
appropriate congressional committees--
            (1) identifying the progress of United States foreign 
        policy to accomplish the policy identified in section 3;
            (2) evaluating the degree to which the assistance 
        authorized by chapter 12 of part I of the Foreign Assistance 
        Act of 1961, as added by section 5 of this Act, was able to 
        accomplish the purposes identified in those sections; and
            (3) recommending any additional initiatives that should be 
        undertaken by the United States to implement the policy and 
        purposes contained in this Act.

SEC. 7. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committee on 
        Foreign Relations of the Senate and the Committee on 
        International Relations of the House of Representatives.
            (2) Central asia.--The term ``Central Asia'' means 
        Kazakstan, Kyrgystan, Tajikistan, Turkmenistan, and Uzbekistan.
            (3) Countries of the south caucasus.--The term ``countries 
        of the South Caucasus'' means Armenia, Azerbaijan, and Georgia.