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28–368PDF 2006

CALLING ON THE GOVERNMENT OF GERMANY TO TAKE IMMEDIATE ACTION TO COMBAT SEX TRAFFICKING IN CONNECTION WITH THE 2006 FIFA WORLD CUP; ASSISTANCE FOR

SMALL AND MEDIUM ENTERPRISES IN SUB-SAHARAN AFRICAN

COUNTRIES ACT OF 2005; GLOBAL ONLINE FREEDOM ACT

OF 2006; CENTRAL ASIA DEMOCRACY AND HUMAN RIGHTS

PROMOTION ACT OF 2006

MARKUP

BEFORE THE

SUBCOMMITTEE ON AFRICA, GLOBAL HUMAN 

RIGHTS AND INTERNATIONAL OPERATIONS

OF THE

COMMITTEE ON 

INTERNATIONAL RELATIONS 

HOUSE OF REPRESENTATIVES

ONE HUNDRED NINTH CONGRESS

SECOND SESSION

ON

H. Res. 860, H.R. 4319, H.R. 4780 and H.R. 5382

JUNE 22, 2006

Serial No. 109–173

Printed for the use of the Committee on International Relations

(

Available via the World Wide Web: http://www.house.gov/international—relations 

(II)

COMMITTEE ON INTERNATIONAL RELATIONS 

HENRY J. HYDE, Illinois, Chairman 

JAMES A. LEACH, Iowa 

CHRISTOPHER H. SMITH, New Jersey, 

Vice Chairman 

DAN BURTON, Indiana 

ELTON GALLEGLY, California 

ILEANA ROS-LEHTINEN, Florida 

DANA ROHRABACHER, California 

EDWARD R. ROYCE, California 

PETER T. KING, New York 

STEVE CHABOT, Ohio 

THOMAS G. TANCREDO, Colorado 

RON PAUL, Texas 

DARRELL ISSA, California 

JEFF FLAKE, Arizona 

JO ANN DAVIS, Virginia 

MARK GREEN, Wisconsin 

JERRY WELLER, Illinois 

MIKE PENCE, Indiana 

THADDEUS G. MCCOTTER, Michigan 

KATHERINE HARRIS, Florida 

JOE WILSON, South Carolina 

JOHN BOOZMAN, Arkansas 

J. GRESHAM BARRETT, South Carolina 

CONNIE MACK, Florida 

JEFF FORTENBERRY, Nebraska 

MICHAEL MCCAUL, Texas 

TED POE, Texas 

TOM LANTOS, California 

HOWARD L. BERMAN, California 

GARY L. ACKERMAN, New York 

ENI F.H. FALEOMAVAEGA, American 

Samoa 

DONALD M. PAYNE, New Jersey 

SHERROD BROWN, Ohio 

BRAD SHERMAN, California 

ROBERT WEXLER, Florida 

ELIOT L. ENGEL, New York 

WILLIAM D. DELAHUNT, Massachusetts 

GREGORY W. MEEKS, New York 

BARBARA LEE, California 

JOSEPH CROWLEY, New York 

EARL BLUMENAUER, Oregon 

SHELLEY BERKLEY, Nevada 

GRACE F. NAPOLITANO, California 

ADAM B. SCHIFF, California 

DIANE E. WATSON, California 

ADAM SMITH, Washington 

BETTY MCCOLLUM, Minnesota 

BEN CHANDLER, Kentucky 

DENNIS A. CARDOZA, California 

RUSS CARNAHAN, Missouri 

THOMAS E. MOONEY, SR., Staff Director/General Counsel 

ROBERT R. KING, Democratic Staff Director 

SUBCOMMITTEE ON AFRICA, GLOBAL HUMAN RIGHTS AND INTERNATIONAL

OPERATIONS

CHRISTOPHER H. SMITH, New Jersey, Chairman 

THOMAS G. TANCREDO, Colorado 

JEFF FLAKE, Arizona 

MARK GREEN, Wisconsin 

JOHN BOOZMAN, Arkansas 

JEFF FORTENBERRY, Nebraska 

EDWARD R. ROYCE, California, 

Vice Chairman 

DONALD M. PAYNE, New Jersey 

GREGORY W. MEEKS, New York 

BARBARA LEE, California 

DIANE E. WATSON, California 

BETTY MCCOLLUM, Minnesota 

EARL BLUMENAUER, Oregon 

MARY M. NOONAN, Subcommittee Staff Director 

GREG SIMPKINS, Subcommittee Professional Staff Member 

NOELLE LUSANE, Democratic Professional Staff Member 

SHERI A. RICKERT, Subcommittee Professional Staff Member and Counsel 

LINDSEY M. PLUMLEY, Staff Associate 

(III)

C O N T E N T S 

Page

MARKUP OF 

H. Res. 860, Calling on the Government of Germany to take immediate 

action to combat sex trafficking in connection with the 2006 FIFA World 

Cup, and for other purposes ................................................................................ 2

Amendments to H. Res. 860 offered by the Honorable Christopher H. 

Smith, a Representative in Congress from the State of New Jersey and 

Chairman, Subcommittee on Africa, Global Human Rights and International Operations .......................................................................................... 9

H.R. 4319, To provide assistance for small and medium enterprises in subSaharan African countries, and for other purposes .......................................... 16

H.R. 4780, To promote freedom of expression on the Internet, to protect 

United States businesses from coercion to participate in repression by authoritarian foreign governments, and for other purposes ................................. 52

Amendment in the Nature of a Substitute to H.R. 4780 offered by the 

Honorable Christopher H. Smith .................................................................... 80

Amendment to the Amendment in the Nature of a Substitute to H.R. 

4780 offered by the Honorable Earl Blumenauer, a Representative in 

Congress from the State of Oregon ................................................................. 113

H.R. 5382, To promote the development of democratic institutions and full 

respect for human rights in the countries of Central Asia ............................... 118

Amendment in the Nature of a Substitute to H.R. 5382 offered by the 

Honorable Christopher H. Smith .................................................................... 137

LETTERS, STATEMENTS, ETC., SUBMITTED FOR THE RECORD 

The Honorable Christopher H. Smith: 

Prepared statement on H. Res. 860 .................................................................... 12

Prepared statement on H.R. 4319 ...................................................................... 50

(1)

CALLING ON THE GOVERNMENT OF GERMANY TO TAKE IMMEDIATE ACTION TO COMBAT SEX TRAFFICKING IN CONNECTION WITH THE 2006 FIFA WORLD CUP; ASSISTANCE 

FOR SMALL AND MEDIUM ENTERPRISES IN SUB-SAHARAN 

AFRICAN COUNTRIES ACT OF 2005; GLOBAL ONLINE FREEDOM ACT OF 2006; CENTRAL ASIA DEMOCRACY AND 

HUMAN RIGHTS PROMOTION ACT OF 2006

THURSDAY, JUNE 22, 2006

HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON AFRICA, GLOBAL HUMAN RIGHTS

AND INTERNATIONAL OPERATIONS, COMMITTEE ON INTERNATIONAL RELATIONS, Washington, DC. 

The Subcommittee met, pursuant to notice, at 2:12 p.m. in room 

2172, Rayburn House Office Building, Hon. Christopher H. Smith 

(Chairman of the Subcommittee) presiding. 

Mr. SMITH OF NEW JERSEY. Pursuant to notice, I call up the resolution H. Res. 860, calling on the Government of Germany to take 

immediate action to combat sex trafficking in connection with the 

2006 FIFA World Cup for purposes of markup, and move its recommendation to the Full Committee. 

[H. Res. 860 follows:]

2

1

IV

109TH CONGRESS

2D SESSION H. RES. 860

Calling on the Government of Germany to take immediate action to combat

sex trafficking in connection with the 2006 FIFA World Cup, and

for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JUNE 9, 2006

Mr. SMITH of New Jersey submitted the following resolution; which was

referred to the Committee on International Relations

RESOLUTION

Calling on the Government of Germany to take immediate

action to combat sex trafficking in connection with the

2006 FIFA World Cup, and for other purposes.

Whereas trafficking in human beings, for sexual or labor exploitation, is an egregious violation of human rights;

Whereas Congress passed and the President signed into law

the Trafficking Victims Protection Act of 2000 (division

A of Public Law 106–386), the Trafficking Victims Protection Reauthorization Act of 2003 (Public Law 108–

193), and the Trafficking Victims Protection Reauthorization Act of 2005 (Public Law 109–186) in order to

promote vigorous efforts worldwide to combat all forms

of trafficking in human beings;


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•HRES 860 IH

Whereas major sporting events, conventions, and other such

events that attract large numbers of people have been

shown to result in an increase in the demand for commercial sexual services;

Whereas ‘‘pimps’’ and traffickers are aware of this demand

and respond to it by trafficking women and girls for

prostitution at such events;

Whereas trafficked women are often persuaded to cross international borders by false promises of legitimate employment in other countries, before being forced to engage in

prostitution;

Whereas Germany is a major destination country for trafficking of women and children for prostitution, and there

are an estimated 400,000 women in prostitution in Germany, 75 percent of whom are foreigners;

Whereas the 2006 FIFA World Cup will be played in 12 German cities and millions of fans will be in attendance;

Whereas individuals and organized crime groups that traffic

women and girls for prostitution are expected to increase

their activity before and during the 2006 World Cup;

Whereas in December 2001, Germany legalized ‘‘pimping’’,

prostitution, and maintaining a brothel, and officially

stated that prostitution is no longer to be seen as immoral;

Whereas Germany’s legalized prostitution industry has been

preparing to increase its capacity in anticipation of the

2006 World Cup;

Whereas prostitution and related activities—including pimping and patronizing or maintaining brothels—provide a

fac ̧ade behind which sex traffickers can operate;


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•HRES 860 IH

Whereas in March 2006 the European Parliament adopted a

resolution on ‘‘forced prostitution in the context of world

sports events’’, stating that major sporting events at

which large numbers of people congregate results in a

‘‘temporary and spectacular increase in the demand for

sexual services’’ and then listing a number of actions that

should be undertaken by Germany and others;

Whereas in April 2006, the European Union Justice and

Home Affairs Council adopted a list of best practices

that should be undertaken by member states holding

major international events, including the development

and implementation of measures that discourage the demand for trafficking victims;

Whereas Germany has signed the United Nations Convention

against Transnational Organized Crime and the United

Nations Protocol to Prevent, Suppress, and Punish Trafficking in Persons, Especially Women and Children;

Whereas in February 2006 the United Nations Special

Rapporteur on trafficking in persons, especially women

and children reported to the United Nations Commission

on Human Rights: ‘‘For the most part, prostitution as

actually practised in the world usually does satisfy the

elements of trafficking. . . . Thus, State parties [to the

United Nations Protocol to Prevent, Suppress, and Punish Trafficking in Persons, Especially Women and Children] with legalized prostitution industries have a heavy

responsibility to ensure that the conditions which actually

pertain to the practice of prostitution within their borders are free from the illicit means delineated in subparagraph (a) of the [UN Protocol] definition, so as to ensure

that their legalized prostitution regimes are not simply

perpetuating widespread and systematic trafficking. As


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•HRES 860 IH

current conditions throughout the world attest, States

parties that maintain legalized prostitution are far from

satisfying this obligation.’’; and

Whereas article 9, paragraph 5, of the United Nations Protocol to Prevent, Suppress, and Punish Trafficking in

Persons, Especially Women and Children states: ‘‘States

Parties shall adopt or strengthen legislative or other

measures, such as educational, social or cultural measures, including through bilateral and multilateral cooperation, to discourage the demand that fosters all

forms of exploitation of persons, especially women and

children, that leads to trafficking.’’: Now, therefore, be it

1 Resolved, That the House of Representatives—

2 (1) calls on the Government of Germany to take

3 immediate action to combat sex trafficking in con4 nection with the 2006 FIFA World Cup;

5 (2) calls on Germany to take measures to dis6 courage the demand that fosters all forms of exploi7 tation of persons, especially women and children,

8 that leads to trafficking, including by raising aware9 ness among potential users of prostitution and by re10 considering the effect of legalized prostitution in cre11 ating the demand for prostitution and trafficking;

12 (3) urges countries throughout Europe, includ13 ing Germany, to support vigorously public awareness

14 campaigns to inform and educate the general public,

15 particularly athletes, sports fans, and financial spon16 sors of the 2006 World Cup, about the potential for


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5

•HRES 860 IH

1 trafficking in human beings in response to the rising

2 demand;

3 (4) encourages governments, international orga4 nizations, and nongovernmental organizations to en5 gage in campaigns targeting potential victims and

6 informing them of the risks and dangers of becom7 ing caught in human trafficking networks, particu8 larly at the time of the 2006 World Cup;

9 (5) commends the ‘‘Final Whistle—Stop Forced

10 Prostitution Campaign’’ launched by the National

11 Council of German Women’s Organizations and calls

12 on sports associations, including the Fe ́de ́ration

13 Internationale de Football Association (FIFA), the

14 Union of European Football Associations (UEFA),

15 the German Football Association, and others to sup16 port this campaign and roundly condemn trafficking

17 in human beings and forced prostitution;

18 (6) encourages sponsors of the 2006 World

19 Cup, as well as tour operators and air transportation

20 service providers, to join in the efforts to end the

21 sexual exploitation of women and girls and prevent

22 trafficking in human beings;

23 (7) urges athletes and coaches of teams com24 peting in the 2006 World Cup to denounce the sexVerDate Mar 21 2002 16:32 Jul 18, 2006 Jkt 000000 PO 00000 Frm 00010 Fmt 6633 Sfmt 6633 F:\WORK\AGI\062206M\28368.000 HINTREL1 PsN: SHIRL

28368a.AAF
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6

•HRES 860 IH

1 ual exploitation of women and girls and to encourage

2 prevention of trafficking in human beings; and

3 (8) urges Germany and all countries to ratify or

4 accede to, and to implement, the United Nations

5 Convention Against Transnational Organized Crime

6 and the United Nations Protocol to Prevent, Sup7 press, and Punish Trafficking in Persons, Especially

8 Women and Children.

Æ


28368a.AAG
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Mr. SMITH OF NEW JERSEY. Without objection, the resolution will 

be considered as read and open for amendment at any point. 

And I would advise my colleagues, I do have an amendment 

which I would ask the Clerk to report. 

Ms. PLUMLEY. Amendment to House Resolution 860 offered by 

Mr. Smith of New Jersey. 

[The information referred to follows:]

9


28368a.eps
10


28368b.eps
11

Mr. SMITH OF NEW JERSEY. Without objection, the amendment 

will be considered as read. And I would like to recognize myself to 

make a few opening comments and yield to my colleagues for any 

comments they might have either on the amendment or on the resolution itself. 

I would ask unanimous consent that my full statement be a part 

of the record. Without objection, so ordered. 

One of the tragedies of modern day slavery is that so much of 

the demand for trafficking comes from countries that espouse commitment to human rights. As the world watches the 2006 FIFA 

World Cup, a showcase of world-class athleticism and teamwork, 

Germany, despite its professed commitment to fight the abuse and 

exploitation of women and girls through trafficking, by certain policies it is facilitating and even encouraging, it aids the very crime 

it professes to abhor. 

In December 2001, the German Government legalized prostitution, which is not only inherently harmful and dehumanizing, but 

also fuels trafficking because it provides a facade behind which 

traffickers for sexual exploitation operate. The essential legalization of prostitution also places a greater burden on law enforcement as officials try to distinguish ‘‘legal pimps’’ from human traffickers. 

In Germany, there are about 400,000 women in prostitution, 75 

percent of whom are foreigners. A 2001 report by the Germany 

Federal Criminal Investigation Office reported that of the 414 

women and girls in prostitution that were surveyed, 45 percent 

were forced into prostitution through violence, torture, rape or intimidation. 

Further research conducted by Melissa Farley at Prostitution Research and Education found that 71 percent of women surveyed 

were physically assaulted while engaged in prostitution and a staggering 89 percent wanted to escape prostitution. Rather than preventing the abuse of women, any kind of legalization of prostitution 

appears to condone an act that almost half of the time will result 

in the physical abuse of women. 

Regrettably, according to the 2003 U.N. report, Germany is the 

top destination country for trafficking in women and children for 

prostitution, with most victims trafficked from the former Soviet 

republics and Central and Eastern Europe. The German Government should be outraged by this and immediately take a look at 

their policies which makes Germany such an inviting country for 

traffickers. 

Let me just say, finally, a couple of points. This legislation has 

30 cosponsors. It calls on fans, players, and all citizens to boycott 

the brothels and calls on the Government of Germany to take immediate action to halt state sponsorship of commercial sexual exploitation that leads to sex trafficking of women in connection with 

the World Cup games. 

[The prepared statement of Mr. Smith follows:]

12

PREPARED STATEMENT OF THE HONORABLE CHRISTOPHER H. SMITH, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW JERSEY AND CHAIRMAN, SUBCOMMITTEE ON AFRICA, GLOBAL HUMAN RIGHTS AND INTERNATIONAL OPERATIONS

H. RES. 860

One of the tragedies of modern day slavery is that so much of the demand for 

trafficking comes from countries that espouse commitment to human rights. As the 

world watches the 2006 FIFA World Cup, a showcase of world-class athleticism and 

teamwork, Germany, despite its professed commitment to fight the abuse and exploitation of women and girls through trafficking, by certain policies is facilitating 

or encouraging the very crime it professes to abhor. 

In December 2001 the German government legalized prostitution, which is not 

only inherently harmful and dehumanizing, but it also fuels trafficking because it 

provides a fac ̧ade behind which traffickers for sexual exploitation operate. Legalization of prostitution also places a greater burden on law enforcement as officials try 

to distinguish legal pimps from human traffickers. 

According to the U.S. State Department, where prostitution is legalized or tolerated, there is a greater demand for human trafficking victims and nearly always 

an increase in the number of women and children trafficked into commercial sexual 

slavery. Major sporting events and conventions attract large numbers of people and 

also have been proven to result in an increase in the demand for commercial sexual 

services. Pimps and traffickers jump to respond to the demand by trafficking women 

and girls for prostitution to events, such as the World Cup. 

In Germany there are more than 400,000 women in prostitution, 75% of whom 

are foreigners. A 2001 report by the German Federal Criminal Investigation Office 

reported that of the 414 women and girls in prostitution that were surveyed, 45% 

were forced into prostitution through violence, torture, rape, or intimidation. 

Further research conducted by Melissa Farley at Prostitution Research and Education found that 71% of women surveyed were physically assaulted while engaged 

in prostitution and a staggering 89% wanted to escape prostitution. Rather than 

preventing the abuse of women, the legalization of prostitution appears to condone 

an act that almost half the time will result in the physical abuse of a woman. 

Regrettably, according to a 2003 UN report, Germany is the top destination country for trafficking in women and children for prostitution, with most victims trafficked from the former Soviet republics and Central and Eastern Europe. The German government should be outraged by this and immediately begin to look at their 

policies which make Germany such an inviting country for traffickers. 

In 1993, there were 517 cases of illegal sex slave trade; in 2003, the number of 

identified victims was 1,235. Although specific statistics aren’t available, a recent 

UN report estimates the number of forced laborers in Germany to be anywhere from 

2,000—20,000. Most of these are women from Eastern Europe who were forced into 

prostitution. 

The link between legalization of prostitution and trafficking was recognized in the 

U.S. State Department’s 1999 Country Report on Human Rights Practices, released 

by the Bureau of Democracy, Human Rights and Labor. In the country report on 

Australia, it was noted that in the State of Victoria which legalized prostitution in 

the 1980s, ‘‘Trafficking in East Asian women for the sex trade is a growing problem’’ 

in Australia. ‘‘. . . lax laws—including legalized prostitution in parts of the country—make [anti-trafficking] enforcement difficult at the working level.’’ In order for 

the German government to successfully combat trafficking in persons it must reverse the legalization of prostitution. 

The European Union has also expressed concern that the legalization of prostitution in Germany provides an atmosphere for World Cup fans to legally rape women 

in brothels or in mobile unites designed for quick and discrete entrances and exists 

for the rapists. Europeans and Americans are not the only ones watching in horror 

as Germany potentially plays host to human traffickers. Vivi Akakpo, the West African coordinator for the All Africa Conference of Churches said, ‘‘It is now public 

knowledge that organized syndicates have plans to bring in young women, particularly from Eastern Europe and from other poor countries, to Germany in time for 

the World Soccer Cup 2006.’’

While I welcome the recent ratification by the German government of the UN Protocol to Prevent, Suppress, and Punish Trafficking in Persons, Especially Women 

and Children, as my amendment states, such actions are only a necessary first step 

in combating trafficking in persons in Germany. This resolution encourages the German government to implement the protocol as soon as possible. 

This legislation, which has 30 cosponsors, also calls for fans, players, and all citizens to boycott the Brothels and calls on the government of Germany to take immeVerDate Mar 21 2002 16:32 Jul 18, 2006 Jkt 000000 PO 00000 Frm 00016 Fmt 6633 Sfmt 6621 F:\WORK\AGI\062206M\28368.000 HINTREL1 PsN: SHIRL
13

diate action to halt state sponsorship of commercial sexual exploitation that leads 

to sex trafficking of women in connection with the World Cup games. 

The many athletes and coaches of teams that will play in the World Cup can be 

a voice for the voiceless and should denounce Germany’s complicity in sex trafficking. Sponsors of the World Cup should also join in the efforts to end the sexual 

exploitation of women and girls and prevent trafficking in human beings. 

All those who support the dignity of women should demand strong and immediate 

actions by the German government to reverse its facilitation of sex trafficking. I ask 

my colleagues to give favorable consideration to H. Res. 860, which is a very timely 

and necessary statement to our colleagues in Germany that it is their responsibility 

to fully comply with the spirit of anti-trafficking efforts and reverse its pro-commercial sex laws.

Mr. SMITH OF NEW JERSEY. Let me also point out to my colleagues, as they all know, we held a series of hearings, the first 

hearing devoted exclusively to the situation in Germany, followed 

by a general trafficking hearing at which we heard from two Russian women who had been trafficked into Germany previously who 

told us exactly the kind of degradation they suffered. 

This resolution puts us, we believe, on the side of saying we 

ought to be all about protecting women from this kind of degrading 

treatment, whether it be a seemingly legal establishment or that 

thin line of demarcation that separates truly trafficked women. 

The amendment I am offering does recognize some of the efforts 

of the German Government. Well, they just recently, within days, 

ratified the United Nations Convention Against Transnational Organized Crime and the U.N. Protocol to Prevent, Suppress, and 

Punish Trafficking in Persons, especially women and children. And 

then we urge the Government of Germany to fully implement that. 

So in the midst of all of this they have done something that at 

least looks good. The key will be in its implementation. 

We also, in this amendment, since the German Government expressed some concern that we used the word ‘‘legalized,’’ we strike 

the world ‘‘legalized’’ and put in what they claim is what has happened, and that is—and the language reads as such:

‘‘Officially declared that prostitution is no longer to be seen as 

immoral and amended its legal code to legalize the maintaining of a brothel to permit ‘pimping,’ except when it involves exploiting a prostitute by impairing her personal or economic 

independence, and to elevate prostitution to the status of a legitimate profession.’’

Obviously, I don’t agree that that is a good thing, but they wanted a clarification as to ‘‘legalization’’ versus what it is that they 

have done. 

I would now turn to my friend and colleague, Mr. Payne, for any 

opening comments he might have. 

Mr. PAYNE. Thank you very much. 

Let me commend you for being vigilant on this whole question 

of trafficking and protecting victims, and as it particularly pertains 

to the World Cup that is actually being held today. 

Actually, the World Cup is the largest sporting event in the 

world, and I do believe that countries should not allow sexual exploitation to be a large part of this sporting event, which is 

healthy, which is competitive, which is team-building in national 

pride. 

And so I certainly support this legislation and urge its adoption. 

14

Mr. SMITH OF NEW JERSEY. Are there any other Members who 

would like to be heard? 

Ms. WATSON. Yes. 

Mr. SMITH OF NEW JERSEY. Ambassador Watson. 

Ms. WATSON. Thank you so much, Mr. Chairman, for bringing 

this issue and this resolution to us again. 

This is specific to a specific activity that is taking place now, but 

before this probably completes the process, the games will be over. 

However, is there a possibility to put into this message—because 

it sends a message—that we would like to see the governments 

look at this whole industry and possibly set up a program. 

let me just tell you where I am coming from. When we were getting ready to have the Olympics in Los Angeles in 1986, I put in 

a piece of legislation that would require rape counseling centers in 

every police precinct. I got a call from my mayor saying that in one 

of the Russian newspapers, Izvestia, they said that the rape rate 

is so high that one of the local representatives is asking for a counseling center. So it struck a note that far away. 

And so referring to the pimping and the prostitution industry, I 

am wondering if we could strike a note with them to say that we 

would like Germany, in particular, to review its policies and so on. 

Now I don’t know if it is there; I haven’t read it all the way 

through. I just raise that issue because I think that this whole industry needs to be reviewed in these countries if they are going to 

host a world game. 

Mr. SMITH OF NEW JERSEY. Will the gentlewoman yield? 

Ms. WATSON. Yes, I do yield. 

Mr. SMITH OF NEW JERSEY. We do have in the resolved clause 

an emphasis on demand, trying to reduce demand. We also talk 

about one of the groups, the Final Whistle-Stop Forced Prostitution 

Campaign, and the work they are doing to try to mitigate this 

abuse. 

But certainly any additional language that you think might be 

helpful as we go to Full Committee; or if you have it ready now, 

we would certainly—if it strengthens the resolution, let’s do it, because we do want to send a very consistent message on prevention—protection for the women and prosecution of those who exploit. 

Ms. WATSON. If I can respond, let me just say that I would like 

to take this and when it comes to the Floor, I would like to offer 

an amendment to the last section, subsection 8, lines 3 to 4, because we are in this resolution urging ‘‘Germany and all countries 

to ratify or accede to,’’ and it goes on. So I would like to, within 

this language, to have some specificity. You know, we ought to 

stand for discouraging this kind of thing. 

So I would like to add some language, and I will bring it up at 

that time. Thank you, Mr. Chairman. 

Mr. SMITH OF NEW JERSEY. Would any other Members like to be 

heard? 

If not, the question occurs on the amendment. 

All those in favor, signify by saying aye. 

Opposed, no. 

In the opinion of the Chair, the ayes have it and the agreement 

is agreed to. 

15

The question now occurs on the motion to report the resolution 

H. Res. 860, as amended. 

All those in favor, signify by saying aye. 

Opposed, no. 

The ayes have it and the amendment is agreed to. The staff is 

directed to make any technical and conforming amendments. 

Without objection, the resolution will be reported favorably to the 

Full Committee in the form of a single amendment in the nature 

of a substitute, incorporating the amendment adopted here today. 

Without objection, the staff is directed to make any technical and 

conforming amendments. 

Pursuant to notice, I now call up the bill H.R. 4319, the Assistance for Small and Medium Enterprises in sub-Saharan African 

Countries Act of 2005 for purposes of markup and move its consideration recommendation to the Full Committee. 

[H.R. 4319 follows:]

16

1

I

109TH CONGRESS

1ST SESSION H. R. 4319

To provide assistance for small and medium enterprises in sub-Saharan

African countries, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

NOVEMBER 15, 2005

Mr. LANTOS (for himself and Mr. SMITH of New Jersey) introduced the following bill; which was referred to the Committee on International Relations, and in addition to the Committee on Ways and Means, for a period

to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee

concerned

A BILL

To provide assistance for small and medium enterprises in

sub-Saharan African countries, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Assistance for Small and Medium Enterprises in Sub6 Saharan African Countries Act of 2005’’.

7 (b) TABLE OF CONTENTS.—The table of contents of

8 this Act is as follows:


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•HR 4319 IH

Sec. 1. Short title; table of contents.

Sec. 2. Findings.

Sec. 3. Sense of Congress; declaration of policy.

Sec. 4. Activities of the Overseas Private Investment Corporation to strengthen

financial institutions in sub-Saharan African countries.

Sec. 5. Assistance for small and medium enterprises in sub-Saharan African

countries.

Sec. 6. Actions to improve trade between sub-Saharan African countries and

the United States.

Sec. 7. Definitions.

1 SEC. 2. FINDINGS.

2 Congress finds the following:

3 (1) According to the Organization for Economic

4 Co-operation and Development (OECD), the econo5 mies of sub-Saharan African countries have reg6 istered their highest overall growth in eight years—

7 more than five percent in 2004—due to rising global

8 commodity prices, the expansion of production in oil9 producing sub-Saharan African countries, and pru10 dent macro-economic policies.

11 (2) While economic liberalization has reduced

12 the involvement of governments of sub-Saharan Afri13 can countries in the economic sector, it has not re14 sulted in improved credit delivery to finance domes15 tic businesses, particularly small and medium enter16 prises in sub-Saharan African countries, in the pri17 vate sector.

18 (3) Despite the privatization of over 2,273 busi19 nesses in sub-Saharan African countries and $9.1

20 billion raised, private sector investment still lags beVerDate Mar 21 2002 16:32 Jul 18, 2006 Jkt 000000 PO 00000 Frm 00021 Fmt 6633 Sfmt 6601 F:\WORK\AGI\062206M\28368.000 HINTREL1 PsN: SHIRL

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1 hind Asia, in large part due to inadequate infra2 structure, including electricity, water, roads, and

3 commerce facilities, and a risk-averse retail banking

4 sector.

5 (4) Sub-Saharan Africa countries hold billions

6 of uninvested capital in central banks and financial

7 holding institutions. In the eight-nation West Afri8 can Economic and Monetary Union the amount of

9 excess capital in the central bank recently peaked at

10 almost $2 billion.

11 (5) Excess reserves of uninvested capital in sub12 Saharan African countries have often been illicitly

13 diverted or invested in economically inefficient enter14 prises and other purposes, often for the benefit of

15 politically-connected persons or entities.

16 (6) Nigerian President Olusegun Obasanjo re17 cently estimated that corrupt leaders of sub-Saharan

18 African countries have stolen at least $140 billion

19 from their citizens in the four decades since inde20 pendence. This theft contributes to the fact that the

21 people of sub-Saharan African countries owe

22 unsustainably large public and foreign debts, face

23 high rates of extreme poverty, and have enjoyed lit24 tle basic economic development.


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•HR 4319 IH

1 (7) Increasingly, governments of sub-Saharan

2 African countries are making concerted efforts to in3 vestigate such activities, prosecute corrupt officials,

4 and recover public funds through the creation of

5 agencies such as the Economic and Financial Crimes

6 Commission in Nigeria, the Serious Fraud Office in

7 Ghana, the Federal Ethics and Anticorruption Com8 mission in Ethiopia, and the Anticorruption Com9 mission in Zambia.

10 (8) These efforts will require technical assist11 ance and law enforcement cooperation from the

12 international community, including the United

13 States.

14 (9) A major challenge for sub-Saharan African

15 countries is to productively invest their own capital

16 to expand domestic business ownership and create

17 employment, particularly for youth, in order to pro18 mote broad and sustainable economic growth.

19 (10) While the microenterprise movement has

20 shown itself to be an important generator of self-em21 ployment, research and experience throughout sub22 Saharan Africa also have proven that small and me23 dium enterprises are the greatest catalyst for job

24 creation, skills transfer, and wealth creation in sub25 Saharan Africa.


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•HR 4319 IH

1 (11) Although small and medium enterprises in

2 sub-Saharan African countries make up the largest

3 portion of the formal economy in sub-Saharan Afri4 can countries, the average annual contribution of in5 vestments of such small and medium enterprises to

6 growth in the gross domestic product of sub-Saha7 ran African countries by proportion declined from an

8 average of 14 percent in the 1970s, to 13 percent

9 in the 1980s, and to 12 percent in the first half of

10 the 1990s, while during the same period, the propor11 tion of gross domestic product investment by small

12 and medium enterprises in other developing regions

13 increased.

14 (12) Investments in small and medium enter15 prises in sub-Saharan African countries also have

16 declined, in part because an estimated 37 percent of

17 personal wealth in sub-Saharan African countries is

18 held in assets and cash located outside of sub-Saha19 ran African countries, even though the global region

20 with the highest return on capital investment is sub21 Saharan Africa.

22 (13) Many retail banks avoid lending to small

23 and medium enterprises in sub-Saharan African

24 countries or engage in predatory lending practices,

25 considering such small and medium enterprises as


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•HR 4319 IH

1 presenting a high credit default risk and as costly to

2 administer, and instead concentrate on providing

3 credit to larger local or international firms or on

4 holding high-yield government bonds.

5 (14) This approach harms the prospects for

6 sustainable private sector development by ignoring

7 the necessity of a bottom-up capital formation—a

8 key factor in creating jobs which is necessary to re9 duce poverty and income inequalities.

10 (15) Governments of sub-Saharan African

11 countries must develop the fiscal policies, economic

12 institutions, legal frameworks, labor market protec13 tions, commercial infrastructures, and lending prac14 tices to create and manage competitive business en15 vironments for investors in small and medium enter16 prises in sub-Saharan African countries. Further,

17 small and medium enterprises in sub-Saharan Afri18 can countries must acquire the business skills, ex19 pertise, and capital financing necessary to manage

20 successful businesses.

21 SEC. 3. SENSE OF CONGRESS; DECLARATION OF POLICY.

22 (a) SENSE OF CONGRESS.— It is the sense of Con23 gress that in an increasingly competitive global environ24 ment driven by transformations in technology, commu25 nications, transportation, finance, production, labor marVerDate Mar 21 2002 16:32 Jul 18, 2006 Jkt 000000 PO 00000 Frm 00025 Fmt 6633 Sfmt 6601 F:\WORK\AGI\062206M\28368.000 HINTREL1 PsN: SHIRL

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•HR 4319 IH

1 kets, and markets for goods and services, sub-Saharan Af2 rican countries should develop the private sector, particu3 larly small and medium enterprises, and human capital,

4 goods and services, banking and finance systems, and cre5 ate markets to be full participants in the global economy.

6 (b) DECLARATION OF POLICY.—It shall be the policy

7 of the Government of the United States to make available

8 for private sector development in sub-Saharan African

9 countries professional, technical, and other resources for

10 capacity-building for finance ministries, central and retail

11 banks, and small and medium enterprises to promote en12 trepreneurship, expand the formal sector, and increase

13 trade under the African Growth and Opportunity Act (19

14 U.S.C. 3701 et seq.) of exports from Africa to the United

15 States.

16 SEC. 4. ACTIVITIES OF THE OVERSEAS PRIVATE INVEST17 MENT CORPORATION TO STRENGTHEN FI18 NANCIAL INSTITUTIONS IN SUB-SAHARAN AF19 RICAN COUNTRIES.

20 Section 240 of the Foreign Assistance Act of 1961

21 (22 U.S.C. 2200) is amended by adding at the end the

22 following:

23 ‘‘(c) SUPPORT FOR FINANCIAL INSTITUTIONS IN

24 SUB-SAHARAN AFRICAN COUNTRIES.—


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•HR 4319 IH

1 ‘‘(1) SUPPORT.—The Corporation is com2 mended for its activities in support of the develop3 ment of small and medium enterprises, and is en4 couraged to exercise its authorities to promote

5 United States investments in financial institutions

6 that are duly incorporated in sub-Saharan African

7 countries, to the extent that the purpose of such in8 vestments is to expand investment and lending op9 portunities to small and medium enterprises in sub10 Saharan African countries that are engaged in do11 mestic commerce in areas that are responsible for

12 significant job creation.

13 ‘‘(2) CONSIDERATION.—In making a determina14 tion to provide insurance and financing to financial

15 institutions referred to in paragraph (1), the Cor16 poration should take into consideration the extent to

17 which a project establishes and implements a non18 discrimination in lending policy to prohibit discrimi19 nation based on ethnicity, sex, color, race, religion,

20 physical disability, marital status, or age, and a pol21 icy against predatory lending practices.

22 ‘‘(3) TECHNICAL ASSISTANCE.—In supporting a

23 project referred to in paragraph (1), the Corporation

24 may provide technical assistance to—


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•HR 4319 IH

1 ‘‘(A) improve the quality of management of

2 financial institutions referred to in paragraph

3 (1) to ensure the safety and stability of such in4 stitutions;

5 ‘‘(B) create in such financial institutions

6 effective credit risk management systems to im7 prove the quality of the assets of such institu8 tions and the ability of such institutions to re9 search and assess the overall credit risk of crit10 ical industries in the domestic economy;

11 ‘‘(C) support effective credit risk manage12 ment by developing internal credit rating sys13 tems and credit assessment tools that improve

14 the ability of such financial institutions to

15 evaluate individual credit worthiness and meas16 ure the overall amount of risk posed by the

17 total number of borrowers; and

18 ‘‘(D) establish comprehensive collateral

19 management programs to control borrower as20 sets against default and exposure as part of the

21 risk management process.

22 ‘‘(4) DEFINITIONS.—In this subsection:

23 ‘‘(A) SMALL AND MEDIUM ENTERPRISES

24 IN SUB-SAHARAN AFRICAN COUNTRIES.—The

25 term ‘small and medium enterprises in sub-SaVerDate Mar 21 2002 16:32 Jul 18, 2006 Jkt 000000 PO 00000 Frm 00028 Fmt 6633 Sfmt 6601 F:\WORK\AGI\062206M\28368.000 HINTREL1 PsN: SHIRL

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1 haran African countries’ has the meaning given

2 the term in section 496A(e)(2) of this Act.

3 ‘‘(B) SUB-SAHARAN AFRICAN COUN4 TRIES.—The term ‘sub-Saharan African coun5 tries’ means the countries specified in section

6 107 of the African Growth and Opportunity Act

7 (19 U.S.C. 3706).’’.

8 SEC. 5. ASSISTANCE FOR SMALL AND MEDIUM ENTER9 PRISES IN SUB-SAHARAN AFRICAN COUN10 TRIES.

11 (a) IN GENERAL.—Chapter 10 of part I of the For12 eign Assistance Act of 1961 (22 U.S.C. 2293 et seq.) is

13 amended by inserting after section 496 the following new

14 section:

15 ‘‘SEC. 496A. ASSISTANCE FOR SMALL AND MEDIUM ENTER16 PRISES IN SUB-SAHARAN AFRICAN COUN17 TRIES.

18 ‘‘(a) AUTHORIZATION.—The President, acting

19 through the Administrator of the United States Agency

20 for International Development, is authorized to provide as21 sistance, on such terms and conditions as the President

22 may determine, for small and medium enterprises in sub23 Saharan African countries.


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•HR 4319 IH

1 ‘‘(b) ACTIVITIES SUPPORTED.—Assistance provided

2 under subsection (a) shall, to the maximum extent prac3 ticable, be used to carry out the following activities:

4 ‘‘(1) EFFECTIVENESS OF FINANCIAL SEC5 TORS.—Activities to improve the effectiveness of the

6 financial sectors of sub-Saharan African countries to

7 promote increased business and employment oppor8 tunities for small and medium enterprises in sub-Sa9 haran African countries. Such activities may include

10 providing technical assistance relating to—

11 ‘‘(A) tax policy and administration;

12 ‘‘(B) government debt issuance and man13 agement;

14 ‘‘(C) policies and regulation of financial in15 stitutions;

16 ‘‘(D) prevention, detection, and prosecution

17 of financial crimes;

18 ‘‘(E) regulatory systems;

19 ‘‘(F) innovative services and specialized in20 stitutions to serve the small and medium enter21 prise market; and

22 ‘‘(G) compliance with international finan23 cial standards.

24 ‘‘(2) LENDING PROGRAMS OF FINANCIAL INSTI25 TUTIONS.—Activities to promote the establishment


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•HR 4319 IH

1 of lending programs of financial institutions for

2 small and medium enterprises in sub-Saharan Afri3 can countries by—

4 ‘‘(A) improving the quality of management

5 of such financial institutions to ensure their

6 safety and stability;

7 ‘‘(B) establishing effective credit risk man8 agement systems to improve the quality of the

9 assets of such financial institutions and the

10 ability of such financial institutions to research

11 and assess overall credit risk;

12 ‘‘(C) supporting effective credit risk man13 agement systems described in subparagraph (B)

14 by developing internal credit rating systems and

15 credit assessment tools that improve the ability

16 of such financial institutions to evaluate indi17 vidual credit worthiness and measure the overall

18 amount of risk posed by the total number of

19 borrowers; and

20 ‘‘(D) establishing comprehensive collateral

21 management programs to control borrower as22 sets against default and exposure as part of the

23 risk management process.

24 ‘‘(3) TECHNOLOGY AND INFORMATION RE25 SOURCES.—Activities to improve the technology and


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•HR 4319 IH

1 information resources of financial institutions and

2 small and medium enterprises in sub-Saharan Afri3 can countries. Such activities may include—

4 ‘‘(A) developing computer programs and

5 networking capabilities to provide connectivity

6 between domestic and international banking

7 sectors;

8 ‘‘(B) increasing access by finance min9 istries and central banks to information man10 agement systems and high-speed Internet

11 connectivity; and

12 ‘‘(C) promoting the development of Inter13 net service providers.

14 ‘‘(4) BUSINESS DEVELOPMENT IN RURAL AND

15 PERI-URBAN AREAS.—Activities to promote the de16 velopment of small and medium enterprises in sub17 Saharan African countries that are located in rural

18 and peri-urban areas. Such activities may include—

19 ‘‘(A) carrying out short- and long-term

20 training in entrepreneurship, such as the ‘Busi21 ness Opportunity Centers’ program of the

22 United States Agency for International Devel23 opment in the Republic of Zimbabwe;

24 ‘‘(B) providing training in entrepreneur25 ship, including basic business management, acVerDate Mar 21 2002 16:32 Jul 18, 2006 Jkt 000000 PO 00000 Frm 00032 Fmt 6633 Sfmt 6601 F:\WORK\AGI\062206M\28368.000 HINTREL1 PsN: SHIRL

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•HR 4319 IH

1 counting, bookkeeping, marketing, risk manage2 ment, and computer skills;

3 ‘‘(C) providing assistance to meet inter4 national, particularly United States, quality

5 control standards;

6 ‘‘(D) providing business services on a fee7 for-service basis, such as telephone, fax, email,

8 e-learning, and money transfer services, based

9 on the cost recovery model of the ‘Business Op10 portunity Centers’ program in Zimbabwe;

11 ‘‘(E) carrying out capacity-building activi12 ties for microenterprise business associations

13 and microfinance networks; and

14 ‘‘(F) providing training in internationally

15 recognized labor rights and core labor stand16 ards.

17 ‘‘(5) SMALL BUSINESS DEVELOPMENT IN POST18 CONFLICT STATES.—Activities to promote small

19 business development in post-conflict sub-Saharan

20 African countries. Such activities may include—

21 ‘‘(A) providing rural agriculture entrepre22 neurship training to aid displaced persons, par23 ticularly youth, with the purpose of helping

24 such persons return to rural areas and re-en25 gage in agricultural activities;


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•HR 4319 IH

1 ‘‘(B) adopting more productive and profit2 able production systems such as conservation

3 farming technologies, biotechnologies, biosafety

4 technologies, and increasing the marketability

5 of the surplus production of such systems;

6 ‘‘(C) providing assistance to add commer7 cial value to agricultural goods and to sell such

8 goods to local and regional markets; and

9 ‘‘(D) encouraging agricultural entrepre10 neurship and the formation of cooperatives and

11 marketing associations and providing such asso12 ciations with organizational and technical as13 sistance.

14 ‘‘(6) YOUTH ENTREPRENEURSHIP PROGRAMS.—

15 Activities to establish youth entrepreneurship train16 ing programs in schools or through community part17 nerships with business and youth organizations in

18 sub-Saharan African countries to promote economic

19 skills, ethics, integrity, and healthy life skills among

20 youth in such countries. Such activities may include

21 providing assistance through United States and

22 international youth organizations located in sub-Sa23 haran African countries and ministries of education,

24 local schools, businesses, and youth groups to—


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•HR 4319 IH

1 ‘‘(A) teach basic concepts of business eco2 nomics and free enterprise and the relevance of

3 education for such youth to improving the qual4 ity of their lives;

5 ‘‘(B) teach basic concepts of good govern6 ance, the rule of law, human rights, and citizen7 ship as they relate to national development;

8 ‘‘(C) assist youth to make decisions about

9 their educational and professional future and

10 develop communication skills that are vital to

11 succeed in the domestic, regional, and inter12 national business world;

13 ‘‘(D) develop a specialized curriculum for

14 youth in rural and peri-urban areas and utilize,

15 whenever possible, business and community vol16 unteers to deliver such curriculum; and

17 ‘‘(E) organize student-led enterprises.

18 ‘‘(7) INTELLECTUAL PROPERTY RIGHTS PRO19 TECTION.—Activities to introduce and strengthen

20 laws, regulations, and enforcement mechanisms to

21 protect national and international intellectual prop22 erty rights and to protect the people and industries

23 of sub-Saharan African countries against imported

24 counterfeit consumer and other goods.


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•HR 4319 IH

1 ‘‘(8) ANTI-CORRUPTION INITIATIVES.—Activi2 ties that combat corruption, improve transparency

3 and accountability, and promote other forms of good

4 governance and management in sub-Saharan African

5 countries. Such activities may include—

6 ‘‘(A) providing technical assistance to gov7 ernments of sub-Saharan African countries that

8 are implementing the United Nations Conven9 tion against Corruption, including assistance to

10 combat anti-competitive, unethical, and corrupt

11 activities, including protection against actions

12 that may distort or inhibit transparency in mar13 ket mechanisms and impair the development of

14 small and medium enterprises.

15 ‘‘(B) providing assistance to develop a

16 legal framework for commercial transactions

17 that fosters business practices that promote

18 transparent, ethical, and competitive behavior

19 in the economic sector, such as commercial

20 codes that incorporate international standards

21 and protection of national and international in22 tellectual property rights and core labor stand23 ards; and

24 ‘‘(C) providing training and technical as25 sistance relating to drafting of anti-corruption,


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•HR 4319 IH

1 privatization, and competitive statutory and ad2 ministrative codes, and providing technical as3 sistance to ministries and agencies imple4 menting anti-corruption laws and regulations.

5 ‘‘(c) CONSIDERATION.—In making a determination to

6 provide assistance to financial institutions referred to in

7 subsection (b), the President should take into consider8 ation the extent to which a project establishes and imple9 ments a nondiscrimination in lending policy to prohibit

10 discrimination based on ethnicity, sex, color, race, religion,

11 physical disability, marital status, or age, and a policy

12 against predatory lending practices.

13 ‘‘(d) ACCEPTANCE AND USE OF GIFTS, DEVISES, BE14 QUESTS, AND GRANTS.—In accordance with section

15 635(d) of this Act, the President may accept and use in

16 furtherance of the purposes of this section, money, funds,

17 property, and services of any kind made available by gift,

18 devise, bequest, grant, or otherwise for such purposes.

19 ‘‘(e) REPORT.—

20 ‘‘(1) IN GENERAL.—Not later than January 31

21 of each year, the President shall transmit to the ap22 propriate congressional committees a report that

23 contains a detailed description of the implementation

24 of this section for the prior fiscal year.


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•HR 4319 IH

1 ‘‘(2) CONTENTS.—The report required by para2 graph (1) shall contain a description of the number

3 of grants, contracts, cooperative agreements, or

4 other form of assistance provided under this section

5 with a detailed description of—

6 ‘‘(A) the amount of each grant, contract,

7 cooperative agreement, or other form of assist8 ance; and

9 ‘‘(B) the name of each recipient and each

10 country with respect to which projects or activi11 ties under the grant, contract, cooperative

12 agreement, or other form of assistance were

13 carried out.

14 ‘‘(3) AVAILABILITY TO THE PUBLIC.—The re15 port required by this subsection shall be made avail16 able to the public on the Internet website of the

17 United States Agency for International Develop18 ment.

19 ‘‘(f) DEFINITIONS.—In this section:

20 ‘‘(1) APPROPRIATE CONGRESSIONAL COMMIT21 TEES.—The term ‘appropriate congressional com22 mittees’ means—

23 ‘‘(A) the Committee on International Rela24 tions of the House of Representatives; and


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•HR 4319 IH

1 ‘‘(B) the Committee on Foreign Relations

2 of the Senate.

3 ‘‘(2) SMALL AND MEDIUM ENTERPRISES IN

4 SUB-SAHARAN AFRICAN COUNTRIES.—

5 ‘‘(A) IN GENERAL.—The term ‘small and

6 medium enterprises in sub-Saharan African

7 countries’ means corporations and other legal

8 entities that meet the requirements of this sub9 paragraph. A legal entity meets the require10 ments of this subparagraph if it—

11 ‘‘(i) is organized under the laws of a

12 sub-Saharan African country and has its

13 principal place of business within such

14 country;

15 ‘‘(ii) is owned or controlled by natural

16 persons who are citizens of the sub-Saha17 ran African country referred to in clause

18 (i); and

19 ‘‘(iii) has fewer than 50 employees.

20 ‘‘(B) OWNED OR CONTROLLED.—In sub21 paragraph (A), the term ‘owned or controlled’

22 means—

23 ‘‘(i) in the case of a corporation, the

24 holding of at least 50 percent (by vote or


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•HR 4319 IH

1 value) of the capital structure of the cor2 poration; and

3 ‘‘(ii) in the case of any other kind of

4 legal entity, the holding of interests rep5 resenting at least 50 percent of the capital

6 structure of the entity.

7 ‘‘(3) SUB-SAHARAN AFRICAN COUNTRIES.—The

8 term ‘sub-Saharan African countries’ means the

9 countries specified in section 107 of the African

10 Growth and Opportunity Act (19 U.S.C. 3706).

11 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

12 are authorized to be appropriated to the President to carry

13 out this section $30,000,000 for each of the fiscal years

14 2007 and 2008.’’.

15 (b) CONFORMING AMENDMENT.—Section 497 of the

16 Foreign Assistance Act of 1961 (22 U.S.C. 2294) is

17 amended in the second sentence by adding at the end be18 fore the period the following: ‘‘or section 496A’’.

19 SEC. 6. ACTIONS TO IMPROVE TRADE BETWEEN SUB-SAHA20 RAN AFRICAN COUNTRIES AND THE UNITED

21 STATES.

22 (a) ACTIONS OF THE UNITED STATES TRADE REP23 RESENTATIVE.—

24 (1) PLAN.—The United States Trade Rep25 resentative, in consultation with the Administrator


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•HR 4319 IH

1 of the United States Agency for International Devel2 opment and the Secretary of Agriculture, shall de3 velop a comprehensive plan for the expansion and di4 versification of agricultural trade between sub-Saha5 ran African countries and the United States under

6 the African Growth and Opportunity Act (19 U.S.C.

7 3701 et seq.).

8 (2) ELEMENTS.—The plan required by para9 graph (1) shall—

10 (A) identify the major agricultural prod11 ucts that are exported between sub-Saharan Af12 rican countries and the United States;

13 (B) analyze critical constraints to agricul14 tural trade between sub-Saharan African coun15 tries and the United States and efforts to re16 move such constraints;

17 (C) increase capacity building for research

18 and development for local, regional, and inter19 national markets, agricultural export products,

20 quality improvement, and international food

21 standards;

22 (D) strengthen infrastructure and commu23 nication networks to reduce marketing and

24 transaction costs, in collaboration with the


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•HR 4319 IH

1 United States Agency for International Devel2 opment;

3 (E) increase access to market information

4 (such as information relating to prices, product

5 quality and demand, input quality and costs,

6 and customs rules and regulations) for

7 smallholder farmers, farmer groups and co8 operatives, and relevant government ministries

9 of sub-Saharan African countries;

10 (F) establish and strengthen public-private

11 partnerships in sub-Saharan African countries

12 to enhance agricultural trade between such

13 countries and the United States;

14 (G) establish consultation mechanisms be15 tween the five United States Agricultural Tech16 nical Advisory Committees and counterpart

17 groups in sub-Saharan African countries and

18 regional economic organizations; and

19 (H) support ongoing discussions with agri20 cultural government ministries of sub-Saharan

21 African countries and private sector agricultural

22 organizations in sub-Saharan African countries

23 on issues of mutual concern in the context of

24 World Trade Organization (WTO) agricultural

25 negotiations.


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•HR 4319 IH

1 (3) REPORT.—Not later than one year after the

2 date of the enactment of this Act, the United States

3 Trade Representative shall submit to Congress a re4 port that contains—

5 (A) a detailed description of the plan re6 quired by this subsection; and

7 (B) recommendations for legislation, ad8 ministrative actions, or other actions that the

9 Trade Representative considers appropriate to

10 implement the plan.

11 (b) ACTIONS OF THE DEPARTMENT OF STATE.—

12 (1) ACTIVITIES TO STRENGTHEN FUNDA13 MENTAL LABOR RIGHTS.—

14 (A) SENSE OF CONGRESS.— It is the sense

15 of Congress that sustained economic growth

16 and development in sub-Saharan Africa will de17 pend on building strong, effective enforcement

18 of international labor standards and democratic

19 trade unions that can responsibly represent

20 workers’ interests at the workplace and with

21 their governments in sub-Saharan African coun22 tries.

23 (B) ACTIVITIES.—The Secretary of State

24 shall undertake activities to strengthen interVerDate Mar 21 2002 16:32 Jul 18, 2006 Jkt 000000 PO 00000 Frm 00043 Fmt 6633 Sfmt 6601 F:\WORK\AGI\062206M\28368.000 HINTREL1 PsN: SHIRL

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•HR 4319 IH

1 nationally recognized labor rights and standards

2 in sub-Saharan African countries by—

3 (i) ensuring that governments and

4 businesses in sub-Saharan African coun5 tries are aware of their obligations

6 (through membership in the International

7 Labor Organization (ILO) as well as under

8 United States trade preference programs

9 such as the generalized system of pref10 erences and the African Growth and Op11 portunity Act) to respect, promote, and re12 alize the international labor standards es13 tablished by the ILO;

14 (ii) monitoring the enforcement of

15 labor laws in sub-Saharan African coun16 tries, including labor laws relating to work17 ers’ rights to free association, prohibitions

18 on child labor, forced labor, and discrimi19 nation, safety in the work environment,

20 workplace standards laws regulating min21 imum wage and hours of work, and collec22 tive bargaining, through ensuring, among

23 other things, that reporting on labor rights

24 at United States missions is a priority; and


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•HR 4319 IH

1 (iii) providing technical assistance to

2 enhance enforcement of labor laws in sub3 Saharan African countries and for institu4 tional capacity building of trade unions to

5 increase their capabilities to represent

6 workers at workplaces and with their gov7 ernments.

8 (2) ACTIVITIES TO PROMOTE DIALOGUE AMONG

9 BUSINESS, GOVERNMENT, LABOR, AND NONGOVERN10 MENTAL ORGANIZATIONS.—The Secretary of State

11 shall undertake activities to promote social dialogue

12 among business, government, labor, and nongovern13 mental organizations, including all types of negotia14 tions, consultations, or exchanges of information be15 tween, or among, representatives of business, gov16 ernment, labor, and nongovernmental organizations,

17 on issues of common interest relating to economic

18 and social policy.

19 (c) ACTIONS OF THE FOOD AND DRUG ADMINISTRA20 TION.—The Secretary Health and Human Services, acting

21 through the Food and Drug Administration—

22 (1) shall provide training to agricultural pro23 ducers in sub-Saharan African countries to ensure

24 that exports of such producers meet United States

25 food safety standards;


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•HR 4319 IH

1 (2) should provide technical assistance and ca2 pacity building to agricultural producers in sub-Sa3 haran African countries to ensure such producers

4 meet phytosanitary standards in planting, culti5 vating, harvesting, and processing agricultural prod6 ucts for export, with particular attention to institu7 tions serving smallholder producers, small-scale rural

8 businesses, and cooperatives; and

9 (3) should provide assistance to strengthen ag10 ricultural research and extension capacity to dis11 seminate relevant information on pests and diseases

12 to smallholder farmers in sub-Saharan African coun13 tries, as well as successful, cost efficient and envi14 ronmentally sound solutions.

15 (d) ACTIONS OF THE FOREIGN AGRICULTURE SERV16 ICE.—The Secretary of Agriculture, acting through the

17 Foreign Agriculture Service, should improve market ac18 cess for United States agricultural products in sub-Saha19 ran African countries by—

20 (1) in conjunction with the Secretary of Com21 merce, strengthening the capacity of agricultural

22 producer organizations in sub-Saharan African coun23 tries to identify agricultural equipment and supply

24 needs;


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•HR 4319 IH

1 (2) working with United States financial insti2 tutions to increase the number of such financial in3 stitutions that cooperate with the Supplier Credit

4 Guarantee Program;

5 (3) working with financial institutions in sub6 Saharan African countries to remove obstacles that

7 inhibit fuller implementation of the Export Credit

8 Guarantee and Intermediate Export Credit Guar9 antee programs; and

10 (4) facilitating access for ports of entry and

11 warehouse facilities in sub-Saharan African coun12 tries to the Facilities Guarantee Program.

13 (e) ACTIONS OF THE UNITED STATES AGENCY FOR

14 INTERNATIONAL DEVELOPMENT.—

15 (1) TECHNICAL ASSISTANCE RELATING TO

16 AGOA ELIGIBILITY.—The President, acting through

17 the Administrator of the United States Agency for

18 International Development, shall provide technical

19 assistance to eligible sub-Saharan African countries

20 under the African Growth and Opportunity Act (19

21 U.S.C. 3701 et seq.) to assist such countries to con22 tinue to meet the eligibility requirements under such

23 Act, including eligibility requirements relating to po24 litical and economic reforms.


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•HR 4319 IH

1 (2) TECHNICAL ASSISTANCE RELATING TO

2 AGOA BENEFITS.—The President, acting through the

3 Administrator of the United States Agency for

4 International Development, shall provide technical

5 assistance to eligible sub-Saharan African countries

6 under the African Growth and Opportunity Act to

7 enable small and medium enterprises in sub-Saharan

8 African countries, including agricultural producers,

9 processors and traders, to maximize benefits under

10 such Act (and the amendments made by that Act),

11 including—

12 (A) specific training for business owners

13 on expanding access to the benefits of the Afri14 can Growth and Opportunity Act (and the

15 amendments made by that Act) and other trade

16 preference programs;

17 (B) capacity building for entrepreneurs on

18 production strategies, quality standards, forma19 tion of cooperatives, market research, and mar20 ket development;

21 (C) capacity building to promote diver22 sification of products and value-added proc23 essing; and

24 (D) capacity building and technical assist25 ance for businesses and institutions to help


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•HR 4319 IH

1 them comply with United States counter-ter2 rorism laws.

3 (3) TRANSPORTATION AND COMMUNICA4 TIONS.—

5 (A) FINDINGS.—Congress finds the fol6 lowing:

7 (i) A major impediment to trade be8 tween sub-Saharan African countries and

9 the United States is inadequate direct and

10 regular transport, for products and people,

11 between such countries and the United

12 States.

13 (ii) This transport deficit has reduced

14 the competitiveness of products of sub-Sa15 haran African countries, hindered the peo16 ple of sub-Saharan African countries from

17 expanding exports of perishable items,

18 such as cut flowers or fresh fruits and

19 vegetables, limited the ability of sub-Saha20 ran African countries to increase tourism,

21 and limited the overall volume of trade be22 tween sub-Saharan African countries and

23 the United States.

24 (B) SENSE OF CONGRESS.—It is the sense

25 of Congress that there should be an expansion


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•HR 4319 IH

1 of port-to-port relationships between sub-Saha2 ran African countries and the United States.

3 Such relationships should facilitate—

4 (i) increased coordination between

5 land, sea, and airports to reduce time in

6 transit and thus freight charges;

7 (ii) interaction between technical staff

8 from land, sea, and airports in sub-Saha9 ran African countries and the United

10 States to increase efficiency and safety

11 procedures and protocols;

12 (iii) coordination between chambers of

13 commerce, freight forwarders, customs bro14 kers, and others involved in consolidating

15 and moving freight; and

16 (iv) joint negotiations with shipping

17 companies and airlines on direct shipping

18 and flights between land, sea, and airports

19 in sub-Saharan African countries and the

20 United States to increase frequency and

21 capacity.

22 (C) ASSISTANCE.—The President, acting

23 through the Administrator of the United States

24 Agency for International Development and the

25 Global Development Alliance of the Agency,


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•HR 4319 IH

1 shall facilitate trade between sub-Saharan Afri2 can countries and the United States by encour3 aging public-private partnerships involving busi4 nesses in sub-Saharan African countries and

5 the United States, national and local govern6 ments, bilateral donors, and international finan7 cial institutions, to create needed transportation

8 and communication infrastructure for products

9 and people between rural areas and markets

10 (such as ‘‘farm-to-market’’ roads), and between

11 sub-Saharan African countries.

12 (f) ACTIONS OF THE SMALL BUSINESS ADMINISTRA13 TION.—The Administrator of the Small Business Adminis14 tration should conduct trade training programs for small

15 businesses in the United States, such as the Export Trade

16 Assistance Program, which convey basic information on

17 selling goods to foreign markets, including markets in sub18 Saharan African countries.

19 (g) AUTHORIZATION OF APPROPRIATIONS.—

20 (1) GENERAL ACTIVITIES.—There are author21 ized to be appropriated to carry out this section

22 (other than subsection (b)) $5,000,000 for each of

23 the fiscal years 2007 and 2008.

24 (2) ACTIVITIES OF THE DEPARTMENT OF

25 STATE.—There are authorized to be appropriated to


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•HR 4319 IH

1 carry out subsection (b) $3,000,000 for each of the

2 fiscal years 2007 and 2008.

3 (3) AVAILABILITY.—Amounts appropriated pur4 suant to the authorization of appropriations under

5 paragraphs (1) and (2) are authorized to remain

6 available until expended.

7 SEC. 7. DEFINITIONS.

8 In this Act:

9 (1) SMALL AND MEDIUM ENTERPRISES IN SUB10 SAHARAN AFRICAN COUNTRIES.—The term ‘‘small

11 and medium enterprises in sub-Saharan African

12 countries’’ has the meaning given the term in section

13 496A(e)(2) of the Foreign Assistance Act of 1961

14 (as added by section 5(a) of this Act).

15 (2) SUB-SAHARAN AFRICAN COUNTRIES.—The

16 term ‘‘sub-Saharan African countries’’ means the

17 countries specified in section 107 of the African

18 Growth and Opportunity Act (19 U.S.C. 3706).

Æ


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Mr. SMITH OF NEW JERSEY. Without objection, the bill will be 

considered as read and open for amendment at any point. 

The clerk will report the bill. 

Ms. PLUMLEY. H.R. 4319, to provide assistance for small and medium enterprises in sub-Saharan African countries and for other 

purposes. 

Mr. SMITH OF NEW JERSEY. Without objection, it is considered as 

read and open for amendment. And I recognize myself for a brief 

moment to explain the bill. 

Two weeks ago this Committee held a hearing on removing obstacles to small and medium enterprises in Africa. That hearing 

was a prelude to our consideration of H.R. 4319, the Assistance For 

Small and Medium Enterprises in sub-Saharan African Countries 

Act. 

I would like to thank Mr. Lantos, the Ranking Member of our 

Full Committee, for his cooperative efforts in working with me and 

other Members of the Committee to craft this legislation—it is his 

bill—to meet a need that our hearing confirmed. 

While the African Growth and Opportunity Act, or AGOA, was 

intended to build business linkages between African and American 

entrepreneurs, too often these linkages have involved the oil trade 

rather than small and medium enterprises. As we all know, it is 

small businesses that create jobs, and the lack of small and medium enterprises’ participation in AGOA limits the benefits we had 

hoped such businesses would realize. 

In the hearing, we heard witnesses tell us that too many obstacles interfered with the ability of small and medium enterprises to 

take advantage of the opportunities offered by AGOA. One of the 

main problems is the lack of attention to United States-African agricultural trade; 70 percent of Africans are engaged in agriculture, 

and if our trade preliminaries have any hope of reducing poverty, 

we must help small and medium businesses in the agricultural sector. 

H.R. 4319 does just that. To that end, H.R. 4319 empowers the 

FDA to provide technical assistance to African farmers to ensure 

that their exports meet American requirements and calls on the 

Department of Agriculture to help improve market access for 

United States agricultural products in African countries. 

H.R. 4319 does not neglect small and medium enterprises outside 

of the agricultural sector. It calls on the Small Business Administration to convey basic information on selling goods in foreign markets. 

A very important aspect of this legislation is that H.R. 4319 protects the rights of workers to encourage productive labor-management relations so that increased United States-Africa trade is not 

plagued by workers laboring in unsafe conditions. 

Provisions of this bill have long been championed by Members of 

the Committee, including Mr. Payne and Mr. Royce, but were 

stripped out from the last AGOA bill. We believe that the reinsertion of these provisions in the legislation will enable our trade preference programs to be more effective in broadening the benefits to 

small and medium enterprises. 

I yield to Mr. Payne for his comments. 

[The prepared statement of Mr. Smith follows:]

50

PREPARED STATEMENT OF THE HONORABLE CHRISTOPHER H. SMITH, A REPRESENTA- TIVE IN CONGRESS FROM THE STATE OF NEW JERSEY AND CHAIRMAN, SUB- COMMITTEE ON AFRICA, GLOBAL HUMAN RIGHTS AND INTERNATIONAL OPERATIONS

H.R. 4319

Two weeks ago, this Subcommittee held a hearing on removing obstacles to small 

and medium enterprises in Africa. That hearing was a prelude to our consideration 

of H.R. 4319—the Assistance for Small and Medium Enterprises in Sub-Saharan African Countries Act. 

I’d like to thank Mr. Lantos, the ranking member of our Committee, for his cooperative efforts in working with me to craft this legislation to meet a need that our 

hearing confirmed. While the African Growth and Opportunity Act, or AGOA, was 

intended to build business linkages between African and American entrepreneurs, 

too often these linkages have involved the oil trade rather than small and medium 

enterprises. As we all know, it is small business that creates jobs, and the lack of 

small and medium enterprise participation in AGOA limits the benefits we had 

hoped such businesses would realize. 

In the hearing, we heard witnesses tell us that too many obstacles interfered with 

the ability of small and medium enterprises to take advantage of the opportunities 

offered by AGOA. One of the main problems is the lack of attention to U.S.-African 

agriculture trade. Seventy percent of Africans are engaged in agriculture, and if our 

trade programs have any hope of reducing poverty, we must help small and medium 

business in the agriculture sector. H.R. 4319 does that. 

To that end, H.R. 4319 also empowers the Food and Drug Administration to provide technical assistance to African farmers to ensure that their exports meet American requirements and calls on the Department of Agriculture to help improve market access for U.S. agricultural products in Africa countries. 

However, H.R. 4319 does not neglect small and medium enterprises outside the 

agriculture sector. It calls on the Small Business Administration to convey basic information on selling goods in foreign markets. 

A very important aspect of this legislation is that H.R. 4319 protects the rights 

of workers and encourages productive labor-management relations so that increased 

U.S.-Africa trade is not plagued by workers laboring in unsafe conditions. 

Provisions of this bill have long been championed by members of the Subcommittee, such as Mr. Royce and Mr. Payne, but were stripped from the last 

AGOA bill. We believe the reinsertion of these provisions in legislation will enable 

all our trade preference programs to be more effective in broadening the benefits 

to small and medium enterprises. 

I ask my colleagues to give favorable consideration to H.R. 4319, which is a very 

timely and useful effort to make U.S.-Africa trade as effective as it was intended 

to be.

Mr. PAYNE. Thank you, Mr. Chairman. And I strongly support 

4319. As we know, perhaps 80 percent of population in Africa lives 

in rural areas, and it would just seem that it is a natural thing for 

people who live in rural areas to be able to use that area for agriculture. 

We do know there are some problems here in our country, in Europe and in Japan where a tremendous amount of agricultural subsidies are given to the farmers in the Western Europe, United 

States and Japanese countries. We will be unable to impact that 

here immediately, but I think that we should do everything that 

we can to assist the African farmer. 

Unfortunately, about 25 years ago, USAID got out of the business of assisting in farming, and until Administrator Natsios returned, there was no emphasis on agriculture at all, and he did 

start a move for USAID to focus on agriculture. 

If you keep people—if there are opportunities in the agricultural 

regions, it will prevent people from rushing to the cities where the 

cities are overcrowded. It creates slums; people are looking for employment, and it just exacerbates an already bad situation. And so 

if there is a way to keep people in the rural areas in agricultural 

sectors, I think that that helps the countries in general. 

51

Mr. Natsios has left USAID, but I hope the new administrator 

will pick up on the whole question of agriculture. But I think that 

this bill will certainly go a long way in assisting small and medium-size enterprises, and so I urge support of the legislation. 

Mr. SMITH OF NEW JERSEY. Thank you. 

Are there any amendments to the bill? Would anyone else like 

to be heard? 

Ms. WATSON. Mr. Chairman, I do have a concern that was 

brought to me by representatives of the Ethiopian Government, 

and it had to do with IP, intellectual property. 

But more so than that, they are the producer of a very fine coffee 

bean upon which some newly established coffee houses have made 

their fortunes; and the trade arrangements are such that there is 

a disincentive for the country of Ethiopia to grow the coffee bean, 

because they only get, like, 1 percent of the take, and it costs them 

so much to farm. 

So I might also look to see if we can put protections in here for 

the intellectual property. They are trying to grab their brand name 

from them, so there are some trade considerations that I would like 

to see. I will then look at bill and prepare an amendment along 

those lines. 

Mr. SMITH OF NEW JERSEY. Thank you. 

The question occurs on the motion to report the bill H.R. 4319, 

Assistance For Small and Medium Enterprises in sub-Saharan African Countries Act of 2005, favorably. 

All those in favor, signify by saying aye. 

Opposed, no. 

The motion is approved and the bill is reported favorably. The 

staff is directed to make any technical and conforming amendments. 

We now move to our next piece of legislation. Pursuant to notice, 

I call up the bill H.R. 4780, the Global Online Freedom Act of 2006, 

for purposes of markup, and move its favorable recommendation to 

the Full Committee. Without objection, the bill will be considered 

as read and open for amendment at any point. 

[H.R. 4780 follows:]

52

1

I

109TH CONGRESS

2D SESSION H. R. 4780

To promote freedom of expression on the Internet, to protect United States

businesses from coercion to participate in repression by authoritarian

foreign governments, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 16, 2006

Mr. SMITH of New Jersey (for himself, Mr. LANTOS, Mr. WOLF, Mr. PAYNE,

Mr. ROHRABACHER, and Mr. RYAN of Ohio) introduced the following bill;

which was referred to the Committee on International Relations, and in

addition to the Committee on Energy and Commerce, for a period to be

subsequently determined by the Speaker, in each case for consideration

of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To promote freedom of expression on the Internet, to protect

United States businesses from coercion to participate

in repression by authoritarian foreign governments, and

for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Global Online Freedom Act of 2006’’.


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•HR 4780 IH

1 (b) TABLE OF CONTENTS.—The table of contents of

2 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Findings.

Sec. 3. Definitions.

Sec. 4. Severability.

TITLE I—PROMOTION OF GLOBAL INTERNET FREEDOM

Sec. 101. Statement of policy.

Sec. 102. Sense of Congress.

Sec. 103. Annual Country Reports on Human Rights Practices.

Sec. 104. Office of Global Internet Freedom.

Sec. 105. Annual designation of Internet-restricting countries; report.

TITLE II—MINIMUM CORPORATE STANDARDS FOR ONLINE

FREEDOM

Sec. 201. Protection of search engines and content services.

Sec. 202. Integrity of search engines.

Sec. 203. Transparency regarding search engine filtering.

Sec. 204. Protection of United States-supported online content.

Sec. 205. Transparency regarding Internet censorship.

Sec. 206. Integrity of user identifying information.

Sec. 207. Penalties.

TITLE III—EXPORT CONTROLS FOR INTERNET-RESTRICTING

COUNTRIES

Sec. 301. Establishment of export controls.

Sec. 302. Report.

3 SEC. 2. FINDINGS.

4 Congress makes the following findings:

5 (1) Freedom of speech and freedom of the press

6 are fundamental human rights, and free use of the

7 Internet is protected in Article 19 of the Universal

8 Declaration of Human Rights, which guarantees

9 freedom to ‘‘receive and impart information and

10 ideas through any media regardless of frontiers’’.


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•HR 4780 IH

1 (2) The Internet has been a success because it

2 quickly provides information to its more than 972

3 million users globally.

4 (3) The growth of the Internet and other infor5 mation technologies can be a force for democratic

6 change if the information is not subject to political

7 censorship.

8 (4) The Internet has played a role in bringing

9 international attention to issues the discussion of

10 which are forbidden by authoritarian foreign govern11 ments, such as attempts by the Government of the

12 People’s Republic of China to suppress news of the

13 severe acute respiratory syndrome (SARS) outbreak

14 in 2004.

15 (5) The rapid provision of full and uncensored

16 information through the Internet has become a

17 major industry of the United States, and one of its

18 major exports.

19 (6) Political censorship of the Internet degrades

20 the quality of that service and ultimately threatens

21 the integrity and viability of the industry itself, both

22 in the United States and abroad.

23 (7) Authoritarian foreign governments such as

24 the Governments of Belarus, Burma, the People’s

25 Republic of China, Cuba, Iran, Libya, the Maldives,


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•HR 4780 IH

1 Nepal, North Korea, Saudi Arabia, Syria, Tunisia,

2 Turkmenistan, Uzbekistan, and Vietnam block, re3 strict, and monitor the information their citizens try

4 to obtain.

5 (8) Web sites that provide uncensored news and

6 information, such as the Web sites of the Voice of

7 America and Radio Free Asia, are routinely blocked

8 in such countries.

9 (9) In June 2003, the Government of the So10 cialist Republic of Vietnam arrested, convicted of

11 ‘‘spying’’, and sentenced to 13 years’ imprisonment

12 and 3 years’ house arrest (later reduced on appeal

13 to 5 years’ imprisonment and 6 years’ house arrest)

14 Dr. Pham Hong Son after he translated an Internet

15 article titled ‘‘What is Democracy’’ from the Web

16 site of the United States Embassy in Vietnam.

17 (10) According to the Department of State’s

18 Country Reports on Human Rights Practices, the

19 Government of Vietnam in 2004 tightened control of

20 the Internet, requiring Internet agents, such as

21 cyber cafes, to register the personal information of

22 their customers and store records of Internet sites

23 visited by customers. The Vietnamese Government

24 also monitored electronic mail, searched for sensitive

25 key words, and regulated Internet content.


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•HR 4780 IH

1 (11) The Government of the People’s Republic

2 of China has employed censorship of the Internet in

3 violation of Article 35 of the Chinese Constitution,

4 which guarantees freedom of speech, freedom of the

5 press, freedom of assembly, freedom of association,

6 freedom of procession, and freedom of demonstra7 tion.

8 (12) This censorship by the Chinese Govern9 ment promotes, perpetuates, and exacerbates a

10 xenophobic—and at times particularly anti-Amer11 ican—Chinese nationalism, the long-term effect of

12 which will be deleterious to United States efforts to

13 prevent the relationship between the United States

14 and China from becoming hostile.

15 (13) Unchecked transfers of dual use tech16 nology have already increased China’s ability to suc17 cessfully invade Taiwan, and correspondingly dimin18 ished United States and Taiwanese capacity to de19 fend that democratic society, thereby greatly increas20 ing tension in East Asia.

21 (14) Technology companies in the United

22 States that operate in countries controlled by au23 thoritarian foreign governments have a responsibility

24 to comply with the principles of the Universal Dec25 laration of Human Rights.


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•HR 4780 IH

1 (15) Technology companies in the United

2 States have succumbed to pressure by authoritarian

3 foreign governments to provide such governments

4 with information about Internet users that has led

5 to the arrest and imprisonment of cyber dissidents,

6 in violation of the corporate responsibility of such

7 companies to protect and uphold human rights.

8 (16) Technology companies in the United

9 States have provided the technology and training to

10 authoritarian foreign governments to assist such

11 governments in filtering and blocking information

12 that promotes democracy and freedom.

13 (17) Technology companies in the United

14 States have failed to develop standards by which

15 they can conduct business with authoritarian foreign

16 governments while protecting human rights to free17 dom of speech and freedom of expression.

18 (18) The United States supports the universal

19 right to freedom of speech and freedom of the press.

20 SEC. 3. DEFINITIONS.

21 In this Act:

22 (1) APPROPRIATE CONGRESSIONAL COMMIT23 TEES.—Except as otherwise provided in this Act, the

24 term ‘‘appropriate congressional committees’’

25 means—


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•HR 4780 IH

1 (A) the Committee on International Rela2 tions of the House of Representatives; and

3 (B) the Committee on Foreign Relations of

4 the Senate.

5 (2) FOREIGN OFFICIAL.—

6 (A) IN GENERAL.—The term ‘‘foreign offi7 cial’’ means—

8 (i) any officer or employee of a for9 eign government or any department, agen10 cy, state-owned enterprise, or instrumen11 tality thereof; or

12 (ii) any person acting in an official ca13 pacity for or on behalf of any such govern14 ment or department, agency, state-owned

15 enterprise, or instrumentality.

16 (B) STATE-OWNED ENTERPRISE.—For

17 purposes of subparagraph (A), the term ‘‘state18 owned enterprise’’ means a commercial entity in

19 which a foreign government owns, directly or

20 indirectly, more than 50 percent of the out21 standing capital stock or other beneficial inter22 est in such commercial entity.

23 (3) INTERNET.—The term ‘‘Internet’’ means

24 the combination of computer facilities, telecommuni25 cations facilities, electromagnetic transmission


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•HR 4780 IH

1 media, and related equipment and software, com2 prising the interconnected worldwide network of

3 computer networks that employ the Transmission

4 Control Protocol/Internet Protocol or any successor

5 protocol to transmit information.

6 (4) INTERNET CONTENT HOSTING SERVICE.—

7 The terms ‘‘Internet content hosting service’’ and

8 ‘‘content hosting service’’ mean a service that—

9 (A) stores, through electromagnetic or

10 other means, electronic data, including the con11 tent of web pages, electronic mail, documents,

12 images, audio and video files, online discussion

13 boards, and weblogs; and

14 (B) makes such data available via the

15 Internet.

16 (5) INTERNET JAMMING.—The term ‘‘Internet

17 jamming’’ means jamming, censoring, blocking,

18 monitoring, or restricting access to the Internet, or

19 to content made available via the Internet, by using

20 technologies such as firewalls, filters, and ‘‘black

21 boxes’’.

22 (6) INTERNET-RESTRICTING COUNTRY.—The

23 term ‘‘Internet-restricting country’’ means a country

24 designated by the President pursuant to section

25 105(a) of this Act.


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•HR 4780 IH

1 (7) INTERNET SEARCH ENGINE.—The term

2 ‘‘Internet search engine’’ or ‘‘search engine’’ means

3 a service made available via the Internet that, on the

4 basis of query consisting of terms, concepts, ques5 tions, or other data input by a user, searches infor6 mation available on the Internet and returns to the

7 user a means, such as a hyperlinked list of Uniform

8 Resource Identifiers, of locating, viewing, or

9 downloading information or data available on the

10 Internet relating to that query.

11 (8) LEGITIMATE FOREIGN LAW ENFORCEMENT

12 PURPOSES.—

13 (A) IN GENERAL.—The term ‘‘legitimate

14 foreign law enforcement purposes’’ means for

15 purposes of enforcement, investigation, or pros16 ecution by a foreign official based on a publicly

17 promulgated law of reasonable specificity that

18 proximately relates to the protection or pro19 motion of the health, safety, or morals of the

20 citizens of that jurisdiction.

21 (B) RULE OF CONSTRUCTION.—For pur22 poses of this Act, the control, suppression, or

23 punishment of peaceful expression of political or

24 religious opinion, which is protected by Article

25 19 of the International Covenant on Civil and


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•HR 4780 IH

1 Political Rights, does not constitute a legitimate

2 foreign law enforcement purpose.

3 (9) PROTECTED FILTER TERMS.—The term

4 ‘‘protected filter terms’’ means the words, terms,

5 and phrases identified by the Office of Global Inter6 net Freedom pursuant to section 104(b)(4) of this

7 Act.

8 (10) SUBSTANTIAL RESTRICTIONS ON INTER9 NET FREEDOM.—The term ‘‘substantial restrictions

10 on Internet freedom’’ means actions that restrict or

11 punish the free availability of information via the

12 Internet for reasons other than legitimate foreign

13 law enforcement purposes, including—

14 (A) deliberately blocking, filtering, or cen15 soring information available via the Internet

16 based on its peaceful political or religious con17 tent; or

18 (B) persecuting, prosecuting, or otherwise

19 punishing an individual or group for posting or

20 transmitting peaceful political or religious opin21 ions via the Internet, including by electronic

22 mail.

23 (11) UNITED STATES BUSINESS.—The term

24 ‘‘United States business’’ means—


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•HR 4780 IH

1 (A) any corporation, partnership, associa2 tion, joint-stock company, business trust, unin3 corporated organization, or sole proprietorship

4 that—

5 (i) has its principal place of business

6 in the United States; or

7 (ii) is organized under the laws of a

8 State of the United States or a territory,

9 possession, or commonwealth of the United

10 States;

11 (B) any issuer of a security registered pur12 suant to section 12 of the Securities Exchange

13 Act of 1934 (15 U.S.C. 78l); and

14 (C) any foreign subsidiary of an entity de15 scribed in subparagraph (A) or (B) to the ex16 tent such entity—

17 (i) controls the voting shares or other

18 equities of the foreign subsidiary; or

19 (ii) authorizes, directs, controls, or

20 participates in acts carried out by the for21 eign subsidiary that are prohibited by this

22 Act.

23 (12) UNITED STATES-SUPPORTED CONTENT.—

24 The term ‘‘United States-supported content’’ means

25 content that is created or developed, in whole or in


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•HR 4780 IH

1 part, by a United States-supported information enti2 ty.

3 (13) UNITED STATES-SUPPORTED INFORMA4 TION ENTITY.—The term ‘‘United States-supported

5 information entity’’ means—

6 (A) any authority of the Government of

7 the United States; and

8 (B) any entity that—

9 (i) receives grants from the Broad10 casting Board of Governors to carry out

11 international broadcasting activities in ac12 cordance with the United States Inter13 national Broadcasting Act of 1994 (title

14 III of Public Law 103–236; 22 U.S.C.

15 6201 et seq.);

16 (ii) in coordination with the Inter17 national Broadcasting Bureau, carries out

18 all nonmilitary international broadcasting

19 activities supported by the Government of

20 the United States in accordance with such

21 Act (other than the international broad22 casting activities supported by the Broad23 casting Board of Governors as specified in

24 such Act); or


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•HR 4780 IH

1 (iii) receives grants or other similar

2 funding from the Government of the

3 United States to carry out any information

4 dissemination activities.

5 (14) UNITED STATES-SUPPORTED WEBSITE.—

6 The term ‘‘United States-supported website’’ means

7 a location on the World Wide Web that is owned or

8 managed by, or is registered to, a United States9 supported information entity.

10 SEC. 4. SEVERABILITY.

11 If any provision of this Act, or the application of such

12 provision to any person or circumstance, is held invalid,

13 the remainder of this Act, and the application of such pro14 vision to other persons not similarly situated or to other

15 circumstances, shall not be affected by such invalidation.

16 TITLE I—PROMOTION OF

17 GLOBAL INTERNET FREEDOM

18 SEC. 101. STATEMENT OF POLICY.

19 It shall be the policy of the United States—

20 (1) to promote the ability of all to access and

21 contribute information, ideas, and knowledge via the

22 Internet and to advance the right to receive and im23 part information and ideas through any media and

24 regardless of frontiers as a fundamental component

25 of United States foreign policy;


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•HR 4780 IH

1 (2) to use all instruments of United States in2 fluence, including diplomacy, trade policy, and ex3 port controls, to support, promote, and strengthen

4 principles, practices, and values that promote the

5 free flow of information; and

6 (3) to prohibit any United States businesses

7 from cooperating with officials of Internet-restricting

8 countries in effecting the political censorship of on9 line content.

10 SEC. 102. SENSE OF CONGRESS.

11 It is the sense of Congress that—

12 (1) the President should commence negotiations

13 in appropriate international fora, including the Or14 ganization of Economic Cooperation and Develop15 ment (OECD), the World Trade Organization

16 (WTO), the United Nations World Summit on the

17 Information Society (WSIS), and the Internet Gov18 ernance Forum (IGF), to obtain the agreement of

19 other countries to enact legislation similar to this

20 Act and to pursue the development of international

21 agreements protecting Internet freedom; and

22 (2) to the extent that a United States business

23 empowers or assists an authoritarian foreign govern24 ment in its efforts to restrict online access to the

25 Web sites of Radio Free Asia, the Voice of America,


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•HR 4780 IH

1 or other United States-supported Web sites and on2 line access to United States Government reports

3 such as the Annual Country Reports on Human

4 Rights Practices and the International Religious

5 Freedom Report, that business is working contrary

6 to the foreign policy interests of the United States,

7 and is undercutting United States taxpayer-funded

8 efforts to promote freedom of information for all

9 people, including those in undemocratic and repres10 sive societies.

11 SEC. 103. ANNUAL COUNTRY REPORTS ON HUMAN RIGHTS

12 PRACTICES.

13 (a) REPORT RELATING TO ECONOMIC ASSIST14 ANCE.—Section 116 of the Foreign Assistance Act of

15 1961 (22 U.S.C. 2151n) is amended by adding at the end

16 the following new subsection:

17 ‘‘(g)(1) The report required by subsection (d) shall

18 include an assessment of the freedom of electronic infor19 mation in each foreign country. Such assessment shall in20 clude the following:

21 ‘‘(A) An assessment of the general extent to

22 which Internet access is available to and used by

23 citizens in that country.

24 ‘‘(B) An assessment of the extent to which gov25 ernment authorities in that country attempt to filter,


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1 censor, or otherwise block Internet content, as well

2 as a description of the means by which they attempt

3 to block such content.

4 ‘‘(C) A description of known instances in which

5 government authorities in that country have per6 secuted, prosecuted, or otherwise punished a person

7 or group for the peaceful expression of political, reli8 gious, or dissenting views via the Internet, including

9 electronic mail.

10 ‘‘(2) In compiling data and making assessments for

11 the purposes of paragraph (1), United States diplomatic

12 mission personnel shall consult with human rights organi13 zations and other appropriate nongovernmental organiza14 tions.’’.

15 (b) REPORT RELATING TO SECURITY ASSISTANCE.—

16 Section 502B of the Foreign Assistance Act of 1961 (22

17 U.S.C. 2304) is amended by adding at the end the fol18 lowing new subsection:

19 ‘‘(i)(1) The report required by subsection (b) shall in20 clude an assessment of the freedom of electronic informa21 tion in each foreign country. Such assessment shall in22 clude the following:

23 ‘‘(A) An assessment of the general extent to

24 which Internet access is available to and used by

25 citizens in that country.


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•HR 4780 IH

1 ‘‘(B) An assessment of the extent to which gov2 ernment authorities in that country attempt to filter,

3 censor, or otherwise block Internet content, as well

4 as a description of the means by which they attempt

5 to block such content.

6 ‘‘(C) A description of known instances in which

7 government authorities in that country have per8 secuted, prosecuted, or otherwise punished a person

9 or group for the peaceful expression of political, reli10 gious, or dissenting views via the Internet, including

11 electronic mail.

12 ‘‘(2) In compiling data and making assessments for

13 the purposes of paragraph (1), United States diplomatic

14 mission personnel shall consult with human rights organi15 zations and other appropriate nongovernmental organiza16 tions.’’.

17 SEC. 104. OFFICE OF GLOBAL INTERNET FREEDOM.

18 (a) ESTABLISHMENT.—There is established in the

19 Department of State the Office of Global Internet Free20 dom (in this section referred to as the ‘‘Office’’).

21 (b) DUTIES.—In addition to such other responsibil22 ities as the President may assign, the Office shall—

23 (1) serve as the focal point for interagency ef24 forts to protect and promote freedom of electronic

25 information abroad;


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1 (2) develop and implement a global strategy to

2 combat state-sponsored and state-directed Internet

3 jamming by authoritarian foreign governments, and

4 the intimidation and persecution by such govern5 ments of their citizens who use the Internet;

6 (3) provide assistance to the President in con7 nection with the annual designation of Internet-re8 stricting countries required by section 105(a) of this

9 Act;

10 (4) beginning not later than 180 days after the

11 date of the enactment of this Act—

12 (A) identify key words, terms, and phrases

13 relating to human rights, democracy, religious

14 free exercise, and peaceful political dissent, both

15 in general and as specifically related to the par16 ticular context and circumstances of each Inter17 net-restricting country, for purposes of compli18 ance by United States businesses with the re19 quirements of section 202 of this Act; and

20 (B) maintain, update, and make publicly

21 available on a regular basis the key words,

22 terms, and phrases identified pursuant to sub23 paragraph (A);

24 (5) establish mechanisms by which United

25 States businesses can transmit to the Office the inVerDate Mar 21 2002 16:32 Jul 18, 2006 Jkt 000000 PO 00000 Frm 00073 Fmt 6633 Sfmt 6601 F:\WORK\AGI\062206M\28368.000 HINTREL1 PsN: SHIRL

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1 formation required to be reported by sections 203

2 and 205 of this Act;

3 (6) work with appropriate technology companies

4 involved in providing, maintaining, or servicing the

5 Internet, human rights organizations, academic ex6 perts, and others to develop a voluntary code of min7 imum corporate standards related to Internet free8 dom; and

9 (7) advise the appropriate congressional com10 mittees of legislative action that may be necessary to

11 keep the provisions of this Act and the amendments

12 made by this Act relevant to changing technologies.

13 (c) COOPERATION OF OTHER FEDERAL DEPART14 MENTS AND AGENCIES.—Each department and agency of

15 the Government of the United States, including the De16 partment of Commerce, the Office of the United States

17 Trade Representative, the Department of Justice, the

18 International Broadcasting Bureau, and the Office of the

19 Director of National Intelligence, shall—

20 (1) cooperate fully with, and assist in the imple21 mentation of, the duties of the Office described in

22 subsection (b), including the strategy developed by

23 the Office pursuant to paragraph (2) of subsection

24 (b); and


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1 (2) make such resources and information avail2 able to the Office as is necessary to achieve the pur3 poses of this Act and the amendments made by this

4 Act.

5 (d) DEFINITION.—In this section, the term ‘‘appro6 priate congressional committees’’ means—

7 (1) the Committee on International Relations

8 and the Committee on Energy and Commerce of the

9 House of Representatives; and

10 (2) the Committee on Foreign Relations and

11 the Committee on Commerce, Science, and Trans12 portation of the Senate.

13 (e) AUTHORIZATION OF APPROPRIATIONS.—There

14 are authorized to be appropriated to the Office to carry

15 out this section such sums as may be necessary for fiscal

16 year 2007 and each subsequent fiscal year.

17 SEC. 105. ANNUAL DESIGNATION OF INTERNET-RESTRICT18 ING COUNTRIES; REPORT.

19 (a) DESIGNATION.—

20 (1) IN GENERAL.—Not later than 180 days

21 after the date of the enactment of this Act, and an22 nually thereafter, the President shall designate

23 Internet-restricting countries for purposes of this

24 Act.


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1 (2) STANDARD.—A foreign country shall be

2 designated as an Internet-restricting country if the

3 President determines that the government of the

4 country is directly or indirectly responsible for a sys5 tematic pattern of substantial restrictions on Inter6 net freedom during the preceding one-year period.

7 (3) INITIAL DESIGNEES.—

8 (A) IN GENERAL.—Each of the countries

9 specified in subparagraph (B) shall be deemed

10 to be designated as an Internet-restricting

11 country pursuant to paragraph (1) beginning

12 on the date of the enactment of this Act and

13 ending on the date on which the President cer14 tifies to the appropriate congressional commit15 tees that the country involved is no longer di16 rectly or indirectly responsible for a systematic

17 pattern of substantial restrictions on Internet

18 freedom.

19 (B) COUNTRIES.—The countries referred

20 to in subparagraph (A) are Burma, the People’s

21 Republic of China, Iran, North Korea, Tunisia,

22 Uzbekistan, and Vietnam.

23 (b) REPORT.—

24 (1) IN GENERAL.—Not later than 180 days

25 after the date of the enactment of this Act, and anVerDate Mar 21 2002 16:32 Jul 18, 2006 Jkt 000000 PO 00000 Frm 00076 Fmt 6633 Sfmt 6601 F:\WORK\AGI\062206M\28368.000 HINTREL1 PsN: SHIRL

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1 nually thereafter, the President shall transmit to the

2 appropriate congressional committees a report that

3 contains the following:

4 (A) The name of each foreign country that

5 at the time of the transmission of the report is

6 designated as an Internet-restricting country

7 pursuant to subsection (a).

8 (B) An identification of each government

9 agency and quasi-government organization re10 sponsible for the substantial restrictions on

11 Internet freedom in each foreign country des12 ignated as an Internet-restricting country pur13 suant to subsection (a).

14 (C) A description of efforts by the United

15 States to counter the substantial restrictions on

16 Internet freedom referred to in subparagraph

17 (B).

18 (2) FORM.—The information required by para19 graph (1)(C) of the report may be provided in a

20 classified form if necessary.

21 (3) INTERNET AVAILABILITY.—All unclassified

22 portions of the report shall be made publicly avail23 able on the Internet Web site of the Department of

24 State.


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1 TITLE II—MINIMUM CORPORATE

2 STANDARDS FOR ONLINE

3 FREEDOM

4 SEC. 201. PROTECTION OF SEARCH ENGINES AND CONTENT

5 SERVICES.

6 Any United States business that creates, provides, or

7 hosts any Internet search engine or maintains an Internet

8 content hosting service may not locate, within a designated

9 Internet-restricting country, any computer hardware used

10 to house, store, serve, or maintain files or other data in11 volved in providing such search engine or content hosting

12 service.

13 SEC. 202. INTEGRITY OF SEARCH ENGINES.

14 Any United States business that creates, provides, or

15 hosts any Internet search engine may not alter the oper16 ation of such search engine with respect to protected filter

17 terms either—

18 (1) at the request of, or by reason of any other

19 direct or indirect communication by, of a foreign of20 ficial of an Internet-restricting country; or

21 (2) in a manner intended or likely to produce

22 different search engine results for users accessing

23 the search engine from within an Internet-restricting

24 country as compared to users elsewhere.


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1 SEC. 203. TRANSPARENCY REGARDING SEARCH ENGINE

2 FILTERING.

3 Any United States business that creates, provides, or

4 hosts an Internet search engine shall provide the Office

5 of Global Internet Freedom, in a format and with a fre6 quency to be specified by the Office, with all terms and

7 parameters submitted, entered, or otherwise provided by

8 any foreign official of an Internet-restricting country, that

9 are used to filter, limit, or otherwise affect the results pro10 vided by the search engine when used by other users.

11 SEC. 204. PROTECTION OF UNITED STATES-SUPPORTED ON12 LINE CONTENT.

13 A United States business that maintains an Internet

14 content hosting service may not conduct Internet jamming

15 of a United States-supported website or United States16 supported content in an Internet restricting country.

17 SEC. 205. TRANSPARENCY REGARDING INTERNET CENSOR18 SHIP.

19 Any United States business that maintains an Inter20 net content hosting service shall provide the Office of

21 Global Internet Freedom, in a format and with a fre22 quency to be specified by the Office, with copies of all data

23 and content that such business has, at the request of, or

24 by reason of any other direct or indirect communication

25 by, any foreign official of an Internet-restricting

26 country—


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1 (1) removed from the content hosting service of

2 such business;

3 (2) blocked from availability on the Internet; or

4 (3) blocked from transmission via the Internet

5 into or within an Internet-restricting country.

6 SEC. 206. INTEGRITY OF USER IDENTIFYING INFORMATION.

7 (a) USER PROTECTION.—Any United States business

8 that maintains an Internet content hosting service may

9 not provide to any foreign official of an Internet-restrict10 ing country information that personally identifies a par11 ticular user of such content hosting service, except for le12 gitimate foreign law enforcement purposes as determined

13 by the Department of Justice.

14 (b) PRIVATE RIGHT OF ACTION.—Any person ag15 grieved by a violation of this section may bring an action

16 for damages, including punitive damages, or other appro17 priate relief in the appropriate district court of the United

18 States, without regard to the amount in controversy, and

19 without regard to the citizenship of the parties.

20 SEC. 207. PENALTIES.

21 (a) CIVIL PENALTIES.—(1) Any United States busi22 ness or United States person that violates section 206(a)

23 shall be fined not more than $2,000,000.

24 (2) Any United States business or United States per25 son that violates sections 201, 202, 203, 204 or 205 shall


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1 be subject to a civil penalty of not more than $10,000 im2 posed in an action brought by the Attorney General.

3 (b) CRIMINAL PENALTIES.—(1) Any United States

4 business that willfully violates, or willfully attempts to vio5 late section 206(a) shall be fined not more than

6 $2,000,000, or if a natural person who is an officer, direc7 tor, employee, or agent of a United States business, or

8 stockholder acting on behalf of such United States busi9 ness, shall be fined not more than $100,000, or impris10 oned not more than 5 years, or both.

11 (2) Any United States business that willfully violates,

12 or willfully attempts to violate section 201, 202, 203, 204

13 or 205 of this Act shall be fined not more than $10,000,

14 or if a natural person who is an officer, director, employee,

15 or agent of a United States business, or stockholder acting

16 on behalf of such United States business, shall be fined

17 not more than $10,000, or imprisoned not more than 1

18 year, or both.

19 (3) Whenever a fine is imposed under paragraph (2)

20 upon any officer, director, employee, agent, or stockholder

21 of a United States business, such fine may not be paid,

22 directly or indirectly, by such United States business.


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1 TITLE III—EXPORT CONTROLS

2 FOR INTERNET-RESTRICTING

3 COUNTRIES

4 SEC. 301. ESTABLISHMENT OF EXPORT CONTROLS.

5 Not later than 90 days after the date of the enact6 ment of this Act, the Secretary of State, in consultation

7 with the Secretary of Commerce, shall promulgate regula8 tions to ensure the establishment of appropriate foreign

9 policy control and export license requirements before any

10 person subject to the jurisdiction of the United States may

11 knowingly export any item subject to sections 730 through

12 774 of title 15, Code of Federal Regulations (commonly

13 known as the ‘‘Export Administration Regulations’’) to an

14 end user in an Internet-restricting country for the pur15 pose, in whole or in part, of facilitating Internet censor16 ship.

17 SEC. 302. REPORT.

18 Not later than 120 days after the date of the enact19 ment of this Act, the Secretary of State, in consultation

20 with the Secretary of Commerce, shall submit to the ap21 propriate congressional committees a report describing the

22 actions taken to implement the requirements of section

23 301 of this Act.

Æ


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Mr. SMITH OF NEW JERSEY. The Clerk will report the amendment. 

Ms. PLUMLEY. Amendment in the nature of a substitute to H.R. 

4780, offered by Mr. Smith of New Jersey. 

[The information referred to follows:]

80

1

H.L.C.

AMENDMENT IN THE NATURE OF A SUBSTITUTE

TO H.R. 4780

OFFERED BY MR. SMITH OF NEW JERSEY

Strike all after the enacting clause and insert the

following:

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

2 (a) SHORT TITLE.—This Act may be cited as the

3 ‘‘Global Online Freedom Act of 2006’’.

4 (b) TABLE OF CONTENTS.—The table of contents of

5 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Findings.

Sec. 3. Definitions.

Sec. 4. Severability.

TITLE I—PROMOTION OF GLOBAL INTERNET FREEDOM

Sec. 101. Statement of policy.

Sec. 102. Sense of congress.

Sec. 103. Annual country reports on human rights practices.

Sec. 104. Office of global internet freedom.

Sec. 105. Annual designation of internet-restricting countries; report.

TITLE II—MINIMUM CORPORATE STANDARDS FOR ONLINE

FREEDOM

Sec. 201. Protection of personally identifiable information.

Sec. 202. Integrity of personally identifiable information.

Sec. 203. Transparency regarding search engine filtering.

Sec. 204. Transparency regarding internet censorship.

Sec. 205. Protection of United States-supported online content.

Sec. 206. Penalties.

Sec. 207. Presidential waiver.

TITLE III—EXPORT CONTROLS FOR INTERNET-RESTRICTING

COUNTRIES

Sec. 301. Feasibility study on establishment of export controls.

Sec. 302. Report.


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1 SEC. 2. FINDINGS.

2 Congress makes the following findings:

3 (1) Freedom of speech and freedom of the press

4 are fundamental human rights, and free flow of in5 formation on the Internet is protected in Article 19

6 of the Universal Declaration of Human Rights,

7 which guarantees freedom to ‘‘receive and impart in8 formation and ideas through any media regardless of

9 frontiers’’.

10 (2) The Internet has been a success because it

11 quickly provides information to its more than

12 972,000,000 users globally.

13 (3) The growth of the Internet and other infor14 mation technologies can be a force for democratic

15 change if the information is not subject to political

16 censorship.

17 (4) The Internet has played a role in bringing

18 international attention to issues the discussion of

19 which are forbidden by authoritarian foreign govern20 ments, such as attempts by the Government of the

21 People’s Republic of China to suppress news of the

22 severe acute respiratory syndrome (SARS) outbreak

23 in 2004.

24 (5) The rapid provision of full and uncensored

25 information through the Internet has become a


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H.L.C.

1 major industry of the United States, and one of its

2 major exports.

3 (6) Political censorship of the Internet degrades

4 the quality of that service and ultimately threatens

5 the integrity and viability of the industry itself, both

6 in the United States and abroad.

7 (7) Authoritarian foreign governments such as

8 the Governments of Belarus, Cuba, Ethiopia, Iran,

9 Laos, North Korea, the People’s Republic of China,

10 Tunisia, and Vietnam block, restrict, and monitor

11 the information their citizens try to obtain.

12 (8) Web sites that provide uncensored news and

13 information, such as the Web sites of the Voice of

14 America and Radio Free Asia, are routinely blocked

15 in such countries.

16 (9) In June 2003, the Government of the So17 cialist Republic of Vietnam arrested, convicted of

18 ‘‘spying’’, and sentenced to 13 years imprisonment

19 and 3 years house arrest (later reduced on appeal to

20 5 years imprisonment and 3 years house arrest) Dr.

21 Pham Hong Son after he translated an Internet ar22 ticle titled ‘‘What is Democracy’’ from the Web site

23 of the United States Embassy in Vietnam.

24 (10) According to the Department of State’s

25 Country Reports on Human Rights Practices, the


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H.L.C.

1 Government of Vietnam in 2004 tightened control of

2 the Internet, requiring Internet agents, such as

3 cyber cafes, to register the personal information of

4 their customers and store records of Internet sites

5 visited by customers. The Vietnamese Government

6 also monitored electronic mail, searched for sensitive

7 key words, and regulated Internet content.

8 (11) The Government of the People’s Republic

9 of China has employed censorship of the Internet in

10 violation of Article 35 of the Chinese Constitution,

11 which guarantees freedom of speech, freedom of the

12 press, freedom of assembly, freedom of association,

13 freedom of procession, and freedom of demonstra14 tion.

15 (12) This censorship by the Chinese Govern16 ment promotes, perpetuates, and exacerbates a

17 xenophobic—and at times particularly anti-Amer18 ican—Chinese nationalism, the long-term effect of

19 which will be deleterious to United States efforts to

20 prevent the relationship between the United States

21 and China from becoming hostile.

22 (13) Technology companies in the United

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H.L.C.

1 sponsibility to comply with the principles of the Uni2 versal Declaration of Human Rights.

3 (14) Technology companies in the United

4 States have succumbed to pressure by authoritarian

5 foreign governments to provide such governments

6 with information about Internet users that has led

7 to the arrest and imprisonment of cyber dissidents,

8 in violation of the corporate responsibility of such

9 companies to protect and uphold human rights.

10 (15) Technology companies in the United

11 States have provided technology and training to au12 thoritarian foreign governments which have been

13 used by such governments in filtering and blocking

14 information that promotes democracy and freedom.

15 (16) Technology companies in the United

16 States should develop standards by which they can

17 conduct business with authoritarian foreign govern18 ments while protecting human rights to freedom of

19 speech and freedom of expression.

20 (17) The United States supports the universal

21 right to freedom of speech and freedom of the press.

22 SEC. 3. DEFINITIONS.

23 In this Act:

24 (1) APPROPRIATE CONGRESSIONAL COMMIT25 TEES.—Except as otherwise provided in this Act, the


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H.L.C.

1 term ‘‘appropriate congressional committees’’

2 means—

3 (A) the Committee on International Rela4 tions of the House of Representatives; and

5 (B) the Committee on Foreign Relations of

6 the Senate.

7 (2) FOREIGN OFFICIAL.—

8 (A) IN GENERAL.—The term ‘‘foreign offi9 cial’’ means—

10 (i) any officer or employee of a for11 eign government or any department, agen12 cy, state-owned enterprise, or instrumen13 tality thereof; or

14 (ii) any person acting in an official ca15 pacity for or on behalf of any such govern16 ment or department, agency, state-owned

17 enterprise, or instrumentality.

18 (B) STATE-OWNED ENTERPRISE.—For

19 purposes of subparagraph (A), the term ‘‘state20 owned enterprise’’ means a commercial entity in

21 which a foreign government owns, directly or

22 indirectly, more than 50 percent of the out23 standing capital stock or other beneficial inter24 est in such commercial entity.


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H.L.C.

1 (3) INTERNET.—The term ‘‘Internet’’ means

2 the combination of computer facilities, telecommuni3 cations facilities, electromagnetic transmission

4 media, and related equipment and software, com5 prising the interconnected worldwide network of

6 computer networks that employ the Transmission

7 Control Protocol/Internet Protocol or any successor

8 protocol to transmit information.

9 (4) INTERNET CONTENT HOSTING SERVICE.—

10 The terms ‘‘Internet content hosting service’’ and

11 ‘‘content hosting service’’ mean a service that—

12 (A) stores, through electromagnetic or

13 other means, electronic data, including the con14 tent of Web pages, electronic mail, documents,

15 images, audio and video files, online discussion

16 boards, and Web logs; and

17 (B) makes such data available via the

18 Internet.

19 (5) INTERNET JAMMING.—The term ‘‘Internet

20 jamming’’ means jamming, censoring, blocking,

21 monitoring, or restricting access to the Internet, or

22 to content made available via the Internet, by using

23 technologies such as firewalls, filters, and ‘‘black

24 boxes’’.


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H.L.C.

1 (6) INTERNET-RESTRICTING COUNTRY.—The

2 term ‘‘Internet-restricting country’’ means a country

3 designated by the President pursuant to section

4 105(a) of this Act.

5 (7) INTERNET SEARCH ENGINE.—The term

6 ‘‘Internet search engine’’ or ‘‘search engine’’ means

7 a service made available via the Internet that, on the

8 basis of query consisting of terms, concepts, ques9 tions, or other data input by a user, searches infor10 mation available on the Internet and returns to the

11 user a means, such as a hyperlinked list of Uniform

12 Resource Identifiers, of locating, viewing, or

13 downloading information or data available on the

14 Internet relating to that query.

15 (8) LEGITIMATE FOREIGN LAW ENFORCEMENT

16 PURPOSES.—

17 (A) IN GENERAL.—The term ‘‘legitimate

18 foreign law enforcement purposes’’ means for

19 purposes of enforcement, investigation, or pros20 ecution by a foreign official based on a publicly

21 promulgated law of reasonable specificity that

22 proximately relates to the protection or pro23 motion of the health, safety, or morals of the

24 citizens of that jurisdiction.


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H.L.C.

1 (B) RULE OF CONSTRUCTION.—For pur2 poses of this Act, the control, suppression, or

3 punishment of peaceful expression of political or

4 religious opinion, which is protected by Article

5 19 of the International Covenant on Civil and

6 Political Rights, does not constitute a legitimate

7 foreign law enforcement purpose.

8 (9) PERSONALLY IDENTIFIABLE INFORMA9 TION.—The term ‘‘personally identifiable

10 information’’—

11 (A) includes any information described in

12 section 2703(c)(2) of title 18, United States

13 Code; and

14 (B) does not include—

15 (i) any traffic data (as such term is

16 defined in section 201(b) of this Act; or

17 (ii) any record of aggregate data that

18 does not identify particular persons.

19 (10) SUBSTANTIAL RESTRICTIONS ON INTER20 NET FREEDOM.—The term ‘‘substantial restrictions

21 on Internet freedom’’ means actions that restrict or

22 punish the free availability of information via the

23 Internet for reasons other than legitimate foreign

24 law enforcement purposes, including—


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H.L.C.

1 (A) deliberately blocking, filtering, or cen2 soring information available via the Internet

3 based on its peaceful political or religious con4 tent; or

5 (B) persecuting, prosecuting, or otherwise

6 punishing an individual or group for posting or

7 transmitting peaceful political or religious opin8 ions via the Internet, including by electronic

9 mail.

10 (11) UNITED STATES BUSINESS.—The term

11 ‘‘United States business’’ means—

12 (A) any corporation, partnership, associa13 tion, joint-stock company, business trust, unin14 corporated organization, or sole proprietorship

15 that—

16 (i) has its principal place of business

17 in the United States; or

18 (ii) is organized under the laws of a

19 State of the United States or a territory,

20 possession, or commonwealth of the United

21 States;

22 (B) any issuer of a security registered pur23 suant to section 12 of the Securities Exchange

24 Act of 1934 (15 U.S.C. 78l); and


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H.L.C.

1 (C) any foreign subsidiary of an entity de2 scribed in subparagraph (A) or (B) to the ex3 tent such entity—

4 (i) controls the voting shares or other

5 equities of the foreign subsidiary; or

6 (ii) authorizes, directs, controls, or

7 participates in acts carried out by the for8 eign subsidiary that are prohibited by this

9 Act.

10 (12) UNITED STATES-SUPPORTED CONTENT.—

11 The term ‘‘United States-supported content’’ means

12 content that is created or developed, in whole or in

13 part, by a United States-supported information enti14 ty.

15 (13) UNITED STATES-SUPPORTED INFORMA16 TION ENTITY.—The term ‘‘United States-supported

17 information entity’’ means—

18 (A) any authority of the Government of

19 the United States; and

20 (B) any entity that—

21 (i) receives grants from the Broad22 casting Board of Governors to carry out

23 international broadcasting activities in ac24 cordance with the United States Inter25 national Broadcasting Act of 1994 (title


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H.L.C.

1 III of Public Law 103–236; 22 U.S.C.

2 6201 et seq.);

3 (ii) in coordination with the Inter4 national Broadcasting Bureau, carries out

5 all nonmilitary international broadcasting

6 activities supported by the Government of

7 the United States in accordance with such

8 Act (other than the international broad9 casting activities supported by the Broad10 casting Board of Governors as specified in

11 such Act); or

12 (iii) receives grants or other similar

13 funding from the Government of the

14 United States to carry out any information

15 dissemination activities.

16 (14) UNITED STATES-SUPPORTED WEB SITE.—

17 The term ‘‘United States-supported Web site’’

18 means a location on the World Wide Web that is

19 owned or managed by, or is registered to, a United

20 States-supported information entity.

21 SEC. 4. SEVERABILITY.

22 If any provision of this Act, or the application of such

23 provision to any person or circumstance, is held invalid,

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1 vision to other persons not similarly situated or to other

2 circumstances, shall not be affected by such invalidation.

3 TITLE I—PROMOTION OF

4 GLOBAL INTERNET FREEDOM

5 SEC. 101. STATEMENT OF POLICY.

6 It shall be the policy of the United States—

7 (1) to promote as a fundamental component of

8 United States foreign policy the right of everyone to

9 freedom of opinion and expression, including the

10 freedom to hold opinions without interference and to

11 seek, receive, and impart information and ideas

12 through any media and regardless of frontiers;

13 (2) to use all appropriate instruments of United

14 States influence, including diplomacy, trade policy,

15 and export controls, to support, promote, and

16 strengthen principles, practices, and values that pro17 mote the free flow of information, including through

18 the Internet and other electronic media; and

19 (3) to deter any United States business from

20 cooperating with officials of Internet-restricting

21 countries in effecting the political censorship of on22 line content.

23 SEC. 102. SENSE OF CONGRESS.

24 It is the sense of Congress that—


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1 (1) the President should through bilateral, and

2 where appropriate, multilateral activities, seek to ob3 tain the agreement of other countries to promote the

4 goals and objectives of this Act and to protect Inter5 net freedom; and

6 (2) to the extent that a United States business

7 empowers or assists an authoritarian foreign govern8 ment in its efforts to restrict online access to the

9 Web sites of Radio Free Asia, the Voice of America,

10 or other United States-supported Web sites and on11 line access to United States Government reports

12 such as the Annual Country Reports on Human

13 Rights Practices, the Annual Reports on Inter14 national Religious Freedom, and the Annual Traf15 ficking in Human Persons Reports, that business is

16 working contrary to the foreign policy interests of

17 the United States, and is undercutting United

18 States taxpayer-funded efforts to promote freedom

19 of information for all people, including those in un20 democratic and repressive societies.

21 SEC. 103. ANNUAL COUNTRY REPORTS ON HUMAN RIGHTS

22 PRACTICES.

23 (a) REPORT RELATING TO ECONOMIC ASSIST24 ANCE.—Section 116 of the Foreign Assistance Act of


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1 1961 (22 U.S.C. 2151n) is amended by adding at the end

2 the following new subsection:

3 ‘‘(g)(1) The report required by subsection (d) shall

4 include an assessment of the freedom of electronic infor5 mation in each foreign country. Such assessment shall in6 clude the following:

7 ‘‘(A) An assessment of the general extent to

8 which Internet access is available to and used by

9 citizens in that country.

10 ‘‘(B) An assessment of the extent to which gov11 ernment authorities in that country attempt to filter,

12 censor, or otherwise block Internet content, as well

13 as a description of the means by which they attempt

14 to block such content.

15 ‘‘(C) A description of known instances in which

16 government authorities in that country have per17 secuted, prosecuted, or otherwise punished a person

18 or group for the peaceful expression of political, reli19 gious, or dissenting views via the Internet, including

20 electronic mail.

21 ‘‘(2) In compiling data and making assessments for

22 the purposes of paragraph (1), United States diplomatic

23 mission personnel shall consult with human rights organi24 zations and other appropriate nongovernmental organiza25 tions.’’.


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1 (b) REPORT RELATING TO SECURITY ASSISTANCE.—

2 Section 502B of the Foreign Assistance Act of 1961 (22

3 U.S.C. 2304) is amended by adding at the end the fol4 lowing new subsection:

5 ‘‘(i)(1) The report required by subsection (b) shall in6 clude an assessment of the freedom of electronic informa7 tion in each foreign country. Such assessment shall in8 clude the following:

9 ‘‘(A) An assessment of the general extent to

10 which Internet access is available to and used by

11 citizens in that country.

12 ‘‘(B) An assessment of the extent to which gov13 ernment authorities in that country attempt to filter,

14 censor, or otherwise block Internet content, as well

15 as a description of the means by which they attempt

16 to block such content.

17 ‘‘(C) A description of known instances in which

18 government authorities in that country have per19 secuted, prosecuted, or otherwise punished a person

20 or group for the peaceful expression of political, reli21 gious, or dissenting views via the Internet, including

22 electronic mail.

23 ‘‘(2) In compiling data and making assessments for

24 the purposes of paragraph (1), United States diplomatic

25 mission personnel shall consult with human rights organiVerDate Mar 21 2002 16:32 Jul 18, 2006 Jkt 000000 PO 00000 Frm 00099 Fmt 6633 Sfmt 6601 F:\WORK\AGI\062206M\28368.000 HINTREL1 PsN: SHIRL

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1 zations and other appropriate nongovernmental organiza2 tions.’’.

3 SEC. 104. OFFICE OF GLOBAL INTERNET FREEDOM.

4 (a) ESTABLISHMENT.—There is established in the

5 Department of State the Office of Global Internet Free6 dom (in this section referred to as the ‘‘Office’’).

7 (b) DUTIES.—In addition to such other responsibil8 ities as the President may assign, the Office shall—

9 (1) serve as the focal point for interagency ef10 forts to protect and promote freedom of electronic

11 information abroad;

12 (2) develop and ensure the implementation of a

13 global strategy and programs to combat state-spon14 sored and state-directed Internet jamming by au15 thoritarian foreign governments, and the intimida16 tion and persecution by such governments of their

17 citizens who use the Internet;

18 (3) provide assistance to the President in con19 nection with the annual designation of Internet-re20 stricting countries required by section 105(a) of this

21 Act;

22 (4) beginning not later than 180 days after the

23 date of the enactment of this Act—

24 (A) identify key words, terms, and phrases

25 relating to human rights, democracy, religious


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1 free exercise, and peaceful political dissent, both

2 in general and as specifically related to the par3 ticular context and circumstances of each Inter4 net-restricting country; and

5 (B) maintain, update, and make publicly

6 available on a regular basis the key words,

7 terms, and phrases identified pursuant to sub8 paragraph (A);

9 (5) establish mechanisms by which United

10 States businesses can transmit to the Office the in11 formation required to be reported by sections 203

12 and 204 of this Act;

13 (6) establish a regularized consultative process

14 with appropriate technology companies involved in

15 providing, maintaining, or servicing the Internet,

16 human rights organizations, academic experts, and

17 others to develop a voluntary code of minimum cor18 porate standards related to Internet freedom, and to

19 consult with such companies, organizations, experts,

20 and others regarding new technologies and the im21 plementation of appropriate policies relating to such

22 technologies; and

23 (7) advise the appropriate congressional com24 mittees of legislative action that may be necessary to


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H.L.C.

1 keep the provisions of this Act and the amendments

2 made by this Act relevant to changing technologies.

3 (c) COOPERATION OF OTHER FEDERAL DEPART4 MENTS AND AGENCIES.—Each department and agency of

5 the Government of the United States, including the De6 partment of Commerce, the Office of the United States

7 Trade Representative, the Department of Justice, the

8 International Broadcasting Bureau, and the Office of the

9 Director of National Intelligence, shall—

10 (1) cooperate fully with, and assist in the imple11 mentation of, the duties of the Office described in

12 subsection (b), including the strategy developed by

13 the Office pursuant to paragraph (2) of subsection

14 (b); and

15 (2) make such resources and information avail16 able to the Office on a nonreimbursable basis as is

17 necessary to achieve the purposes of this Act and the

18 amendments made by this Act.

19 (d) DEFINITION.—In this section, the term ‘‘appro20 priate congressional committees’’ means—

21 (1) the Committee on International Relations

22 and the Committee on Energy and Commerce of the

23 House of Representatives; and


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H.L.C.

1 (2) the Committee on Foreign Relations and

2 the Committee on Commerce, Science, and Trans3 portation of the Senate.

4 (e) AUTHORIZATION OF APPROPRIATIONS.—There

5 are authorized to be appropriated to the Office to carry

6 out this section $50,000,000 for each of the fiscal years

7 2007 and 2008.

8 SEC. 105. ANNUAL DESIGNATION OF INTERNET-RESTRICT9 ING COUNTRIES; REPORT.

10 (a) DESIGNATION.—

11 (1) IN GENERAL.—Not later than 180 days

12 after the date of the enactment of this Act, and an13 nually thereafter, the President shall designate

14 Internet-restricting countries for purposes of this

15 Act.

16 (2) STANDARD.—A foreign country shall be

17 designated as an Internet-restricting country if the

18 President determines that the government of the

19 country is directly or indirectly responsible for a sys20 tematic pattern of substantial restrictions on Inter21 net freedom during the preceding 1-year period.

22 (3) INITIAL DESIGNEES.—

23 (A) IN GENERAL.—Each of the countries

24 specified in subparagraph (B) shall be deemed

25 to be designated as an Internet-restricting


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H.L.C.

1 country pursuant to paragraph (1) beginning

2 on the date of the enactment of this Act and

3 ending on the date on which the President cer4 tifies to the appropriate congressional commit5 tees that the country involved is no longer di6 rectly or indirectly responsible for a systematic

7 pattern of substantial restrictions on Internet

8 freedom.

9 (B) COUNTRIES.—The countries referred

10 to in subparagraph (A) are Belarus, Cuba,

11 Ethiopia, Iran, Laos, North Korea, the People’s

12 Republic of China, Tunisia, and Vietnam.

13 (b) REPORT.—

14 (1) IN GENERAL.—Not later than 180 days

15 after the date of the enactment of this Act, and an16 nually thereafter, the President shall transmit to the

17 appropriate congressional committees a report that

18 contains the following:

19 (A) The name of each foreign country that

20 at the time of the transmission of the report is

21 designated as an Internet-restricting country

22 pursuant to subsection (a).

23 (B) An identification of each government

24 agency and quasi-government organization re25 sponsible for the substantial restrictions on


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1 Internet freedom in each foreign country des2 ignated as an Internet-restricting country pur3 suant to subsection (a).

4 (C) A description of efforts by the United

5 States to counter the substantial restrictions on

6 Internet freedom referred to in subparagraph

7 (B).

8 (2) FORM.—The information required by para9 graph (1)(C) of the report may be provided in a

10 classified form if necessary.

11 (3) INTERNET AVAILABILITY.—All unclassified

12 portions of the report shall be made publicly avail13 able on the Internet Web site of the Department of

14 State.

15 TITLE II—MINIMUM CORPORATE

16 STANDARDS FOR ONLINE

17 FREEDOM

18 SEC. 201. PROTECTION OF PERSONALLY IDENTIFIABLE IN19 FORMATION.

20 (a) PROHIBITION OF LOCATING PERSONALLY IDEN21 TIFIABLE INFORMATION IN INTERNET-RESTRICTING

22 COUNTRIES.—A United States business may not locate,

23 within a designated Internet-restricting country, any elec24 tronic communication that contains any personally identi25 fiable information.


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1 (b) DEFINITIONS.—In this section:

2 (1) TITLE 18 DEFINITIONS.—The terms ‘‘elec3 tronic communication’’, ‘‘electronic communications

4 system’’, ‘‘electronic storage’’, and ‘‘contents’’ have

5 the meanings given such terms in section 2510 of

6 title 18, United States Code.

7 (2) LOCATE.—The term ‘‘locate’’ includes, with

8 respect to an electronic communication—

9 (A) computer storage or processing by fa10 cilities of a remote computing service, as such

11 term is defined in section 2711 of title 18,

12 United States Code;

13 (B) electronic storage by any electronic or

14 computer server or facility of an electronic com15 munications system; and

16 (C) any other storage by any electronic or

17 computer server or facility.

18 (3) TRAFFIC DATA.—The term ‘‘traffic data’’

19 means, with respect to an electronic communication,

20 any information contained in or relating to such

21 communication that is processed for the purpose of

22 the conveyance of the communication by an elec23 tronic communications system or for the billing

24 thereof, including any Internet Protocol address or

25 other means of identifying a location within an elecVerDate Mar 21 2002 16:32 Jul 18, 2006 Jkt 000000 PO 00000 Frm 00106 Fmt 6633 Sfmt 6601 F:\WORK\AGI\062206M\28368.000 HINTREL1 PsN: SHIRL

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1 tronic communications system, but that does not by

2 itself identify a particular person. Such term does

3 not include the contents of any electronic commu4 nication.

5 SEC. 202. INTEGRITY OF PERSONALLY IDENTIFIABLE IN6 FORMATION.

7 (a) USER PROTECTION.—If a United States business

8 collects or obtains personally identifiable information

9 through the provision of products or services on the Inter10 net, such business may not provide such information to

11 any foreign official of an Internet-restricting country, ex12 cept for legitimate foreign law enforcement purposes as

13 determined by the Department of Justice.

14 (b) USE OF ESTABLISHED LEGAL CHANNELS.—Any

15 information that may be provided under subsection (a) for

16 legitimate foreign law enforcement purposes may only be

17 provided through established legal channels as determined

18 by the Department of Justice.

19 (c) PRIVATE RIGHT OF ACTION.—Any person ag20 grieved by a violation of this section may bring an action

21 for damages, including punitive damages, or other appro22 priate relief in the appropriate district court of the United

23 States, without regard to the amount in controversy, and

24 without regard to the citizenship of the parties.


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H.L.C.

1 SEC. 203. TRANSPARENCY REGARDING SEARCH ENGINE

2 FILTERING.

3 Any United States business that creates, provides, or

4 hosts an Internet search engine shall provide the Office

5 of Global Internet Freedom, in a format and with a fre6 quency to be specified by the Office, with all terms and

7 parameters used to filter, limit, or otherwise affect the re8 sults provided by the search engine that are

9 implemented—

10 (1) at the request of, or by reason of any other

11 direct or indirect communication by, any foreign of12 ficial of an Internet-restricting country; or

13 (2) to comply with a policy or practice of re14 strictions on Internet freedom in an Internet-re15 stricting country.

16 SEC. 204. TRANSPARENCY REGARDING INTERNET CENSOR17 SHIP.

18 (a) PROVISION OF URLS.—Any United States busi19 ness that maintains an Internet content hosting service

20 shall provide the Office of Global Internet Freedom, in a

21 format and with a frequency to be specified by the Office,

22 with the Uniform Resource Locators (URLs) of all data

23 and content that such business has, under the cir24 cumstances set forth in subsection (b)—

25 (1) removed from the content hosting service of

26 such business;


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H.L.C.

1 (2) blocked from availability on the Internet; or

2 (3) blocked from transmission via the Internet

3 into or within an Internet-restricting country.

4 (b) CIRCUMSTANCES.—The circumstances referred to

5 in subsection (a) are that the United States business took

6 the action under subsection (a)—

7 (1) at the request of, or by reason of any other

8 direct or indirect communication by, any foreign of9 ficial of an Internet-restricting country; or

10 (2) in order to comply with a policy or practice

11 of restrictions on Internet freedom in an Internet-re12 stricting country.

13 SEC. 205. PROTECTION OF UNITED STATES-SUPPORTED ON14 LINE CONTENT.

15 A United States business that maintains an Internet

16 content hosting service may not conduct Internet jamming

17 of a United States-supported Web site or United States18 supported content in an Internet-restricting country.

19 SEC. 206. PENALTIES.

20 (a) CIVIL PENALTIES.—(1)(A) Any United States

21 business that violates section 202(a) shall be subject to

22 a civil penalty of not more than $2,000,000 imposed in

23 an action brought by the Attorney General.

24 (B) Any officer, director, employee, or agent, or

25 stockholder of a United States business, who is acting on


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H.L.C.

1 behalf of that business concern and who violates section

2 202(a), shall be subject to a civil penalty of not more

3 $100,000 imposed in an action brought by the Attorney

4 General.

5 (2) Any United States business that violates section

6 201, 203, 204, or 205, or any officer, director, employee,

7 or agent, or stockholder of a United States business, who

8 is acting on behalf of that business concern and who vio9 lates section 201, 203, 204, or 205, shall be subject to

10 a civil penalty of not more than $10,000 imposed in an

11 action brought by the Attorney General.

12 (b) CRIMINAL PENALTIES.—(1)(A) Any United

13 States business that willfully violates, or willfully attempts

14 to violate, section 202(a) shall be fined not more than

15 $2,000,000.

16 (B) Any officer, director, employee, or agent, or

17 stockholder of a United States business, who is acting on

18 behalf of that business concern, and who willfully violates,

19 or willfully attempts to violate, section 202(a), shall be

20 fined not more than $100,000, or imprisoned not more

21 than 5 years, or both.

22 (2)(A) Any United States business that willfully vio23 lates, or willfully attempts to violate, section 201, 203,

24 204, or 205 shall be fined not more than $10,000.


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H.L.C.

1 (B) Any officer, director, employee, or agent, or

2 stockholder of a United States business, who is acting on

3 behalf of that business concern and who willfully violates,

4 or willfully attempts to violate, section 201, 203, 204, or

5 205, shall be fined not more than $10,000, or imprisoned

6 not more than 1 year, or both.

7 (c) PAYMENT OF FINES.—Whenever a fine is im8 posed under subsection (a) or (b) upon any officer, direc9 tor, employee, agent, or stockholder of a United States

10 business, the fine may not be paid, directly or indirectly,

11 by the United States business.

12 SEC. 207. PRESIDENTIAL WAIVER.

13 (a) IN GENERAL.—Subject to subsection (b), the

14 President may waive the application of any of provisions

15 of sections 201 through 205 with respect to a United

16 States business or an Internet-restricting country, if the

17 President determines and so reports to the appropriate

18 congressional committees that—

19 (1) the government of the country has ceased

20 the activities giving rise to the designation of the

21 country as an Internet-restricting country;

22 (2) the exercise of such waiver authority would

23 further the purposes of this Act; or


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H.L.C.

1 (3) the important national interest of the

2 United States requires the exercise of such waiver

3 authority.

4 (b) CONGRESSIONAL NOTIFICATION.—Not later than

5 the date of the exercise of a waiver under subsection (a),

6 the President shall notify the appropriate congressional

7 committees of the waiver or the intention to exercise the

8 waiver, together with a detailed justification for the waiv9 er.

10 TITLE III—EXPORT CONTROLS

11 FOR INTERNET-RESTRICTING

12 COUNTRIES

13 SEC. 301. FEASIBILITY STUDY ON ESTABLISHMENT OF EX14 PORT CONTROLS.

15 Not later than 180 days after the date of the enact16 ment of this Act, the Secretary of Commerce, in consulta17 tion with the Secretary of State, shall complete a feasi18 bility study regarding the development of export license

19 requirements regarding the export of any item subject to

20 sections 730 through 774 of title 15, Code of Federal Reg21 ulations (commonly known as the ‘‘Export Administration

22 Regulations’’) to an end user in an Internet-restricting

23 country for the purpose, in whole or in part, of facilitating

24 substantial restrictions on Internet freedom.


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H.L.C.

1 SEC. 302. REPORT.

2 Not later than 30 days after the end of the 180-day

3 period described in section 301, the Secretary of Com4 merce, in consultation with the Secretary of State, shall

5 submit to the appropriate congressional committees a re6 port describing the actions taken to carry out section 301.


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Mr. SMITH OF NEW JERSEY. Without objection, the amendment is 

considered as read. And any amendments offered thereto would be 

to that text, I would point out to my colleagues. 

You have in front of you a summary of H.R. 4780, but I will highlight some of the key provisions. 

And again, this legislation, which we have been working on for 

several months, grew out of an ongoing concern about not just 

China, but—especially China, but other Internet-restricting countries. And as my colleagues will recall, we held a considerable hearing in this Committee room several months ago; I think it was 

about a 71⁄2-hour hearing. 

We heard from the Administration, we heard from human rights 

organizations, including Reporters Without Borders; and we also 

heard from four of the Internet giants who provided us testimony 

and, frankly, were held to account, I think, for some of the actions 

that they are taking in Internet-restricting countries. 

This legislation is comprehensive. It establishes the promotion of 

free access to information through the Internet and recognizes it as 

a fundamental component of U.S. policy. It requires the President 

to submit to Congress an annual report designating as an Internetrestricting country any nation whose government authorities systematically and substantially restrict Internet freedom. 

It creates an Office of Global Internet Freedom in the State Department, not unlike what we did with trafficking, or in the area 

of religious freedom, as well as in the anti-Semitism area, that 

would develop and implement a global strategy to combat statesponsored Internet jamming by repressive foreign governments and 

to work with Internet companies and the private and nonprofit sectors to develop a voluntary code of minimum corporate standards 

related to Internet freedom. 

The legislation would prohibit U.S. companies from disclosing to 

foreign officials of Internet-restricting countries information personally identifying a particular user, except for legitimate law enforcement purposes as determined by the U.S. Department of Justice. 

With regards to filtering and censorship disclosure, it requires 

U.S. Internet service providers to disclose to the Office of Global 

Internet Freedom the terms and parameters that are used to filter 

or alter search engine results and the uniform resource locators, or 

URLs, of all data and content that they have removed or blocked 

in order to comply with the censorship policies of an Internet-restricting country. 

Very importantly, we also provide that there be no censoring of 

U.S. Government sites, which is routine whether it be the religious 

freedom report or the report on trafficking or country reports on 

human rights practices. Notoriously, in places like China, that is 

excised out of what is available to their Internet users, so we would 

block that. It establishes a civil and criminal penalty regime similar to the Foreign Corrupt Practices Act for violations of these 

standards. 

And that basically outlines the bill which we can go into in further detail if you would like. Would anyone else—Mr. Payne would 

you like to be heard? 

Mr. PAYNE. I will just be very brief. 

111

We did have a very long hearing. It is something that has a lot 

of concern, and I do believe that we need to move in an affirmative 

way to try to ensure that the Internet is free. I understand there 

may be some amendments, and if so, I would like to wait to hear 

what those amendments are. 

Mr. SMITH OF NEW JERSEY. Okay. And let me just say, I am very 

grateful, Mr. Payne, for your cosponsorship and that of many Members of our Subcommittee and Full Committee. 

Would anyone else like to be heard? 

If not, the amendment in the nature of a substitute is open for 

amendment. 

Mr. Blumenauer, do you have an amendment? 

Mr. BLUMENAUER. Yes, Mr. Chairman. First of all, as I understand it, you have changed the requirement for export controls that 

would be implemented within 90 days to a 180-day feasibility study 

by the Department of Commerce. 

Mr. SMITH OF NEW JERSEY. The gentleman is correct. 

Mr. BLUMENAUER. Let me say I appreciate movement in that direction. One of the things that our Full Committee needs to spend 

some time on is a seriously broken export control system. I think 

the evidence is that it is counterproductive for American, not just 

American business, but I think we can demonstrate that it ends up 

boomeranging in terms of our own defense interests, because it 

drives people away from America and to develop their own capacity 

and to deal with people who are not necessarily friendly to the 

United States. 

So I would like to express my appreciation for making the change 

on that. 

I did not realize that until I sat down that you had changed the 

text, it wasn’t in the version that we had. So because I was prepared to offer an amendment to strike Title III, and I would like 

to think it through—but let me share my reservation with you, if 

I may, to have yet another study that the Department of Commerce 

does. 

These people are extraordinarily strained right now. Their capacity to turn around, to deal with legitimate concerns of our constituents, businesses that are dealing with the myriad requirements of 

export controls right now gives me pause, because I think, frankly, 

that that is something that has been undercut in terms of the ability of the Department of Commerce to respond. 

I think any of you who talk to high-tech interests in your districts would find that they have some problems. And I suspect, although I haven’t yet had this conversation specifically with the Department of Commerce, there is a question about their ability to 

comply. 

But let me say, I really appreciate its being a feasibility study 

so that we have a better approach. I won’t do anything at this 

point; I would like to think about it. But I do think that it is wise 

for us to go into this very carefully. 

Mr. Chairman, I do however, have an amendment that I would 

offer up, with your permission. 

Mr. SMITH OF NEW JERSEY. The Clerk will report the 

Blumenauer amendment. 

112

Ms. PLUMLEY. Amendment to the amendment in the nature of a 

substitute to H.R. 4780 offered by Mr. Blumenauer of Oregon. 

[The information referred to follows:]

113

1

H.L.C.

AMENDMENT TO THE AMENDMENT IN THE

NATURE OF A SUBSTITUTE TO H.R. 4780

OFFERED BY MR. BLUMENAUER OF OREGON

Strike section 201 and redesignate succeeding sections accordingly.

Page 26, line 21, strike ‘‘202(a)’’ and insert

‘‘201(a)’’.

Page 26, line 24, strike ‘‘201, 203, 204, or 205’’

and insert ‘‘202, 203, or 204’’.

Page 27, line 5, strike ‘‘202(a)’’ and insert

‘‘201(a)’’.

Page 27, lines 12 and 13, strike ‘‘201, 203, 204, or

205’’ and insert ‘‘202, 203, or 204’’.

Page 28, line 1, strike ‘‘205’’ and insert ‘‘204’’.


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Mr. SMITH OF NEW JERSEY. I ask unanimous consent the amendment be considered as read and the gentleman is recognized for 5 

minutes. 

Mr. BLUMENAUER. Thank you. Thank you, Mr. Chairman. This 

amendment deals with section 201, and I appreciate the focus that 

the Chair has had. The fact that we as a Committee have had an 

opportunity to be exposed to a wide variety of opinions and you 

move forward with dispatch. I commend you for that. I appreciate 

it is the way that it has been handled. 

But I do want to express reservations about section 201, which, 

as you mentioned in your summary, would prohibit the United 

States technology companies from locating personally identifiable 

information in an Internet-restricting country. These companies, in 

their efforts to adopt industry standards to protect users, are discussing various approaches to reducing the risk of personally identifiable information being accessed and potentially abused by the 

authorities. And I think you, Mr. Chairman, and the Members of 

this Committee are a part of that, that has moved the industry to 

be more reflective and thoughtful, spurring them along. 

But I wonder if, at this point, it is appropriate to have such a 

categorical prohibition that is contained in 201, in part because it 

would be a huge competitive disadvantage for most Internet service 

providers. It, frankly, in addition, may well mean that U.S. companies would be prohibited from doing business in a number of countries who require that personally identifiable information be available within the jurisdiction where the services are provided for law 

enforcement purposes, just as American law enforcement often gets 

warrants for personal information from Internet service providers. 

I also understand—and I am going here beyond my technological 

capacity, but some of the certified smart people who work with me 

and those in the industry and those with interest groups lead us 

to believe that the prohibition of locating servers or storage facilities with personal identifiable information in Internet-restricting 

countries would, in effect, be a prohibition on locating all servers 

or storage facilities in such countries because of the way the Internet operates. 

By keeping the United States Internet companies out of these 

Internet countries, we would actually increase the ability of these 

countries, and I think we ought to consider this very carefully. We 

would increase the ability of these countries to actually control the 

Internet as it would limit the spread of the Internet and keep 

American companies that I think, in part, as I said, because of 

what this Subcommittee has started, to sort of think of ways that 

they can accomplish the objectives that we have offered up to them. 

It would thus limit the spread of the Internet and keep the companies who are grappling with these difficult issues—we have their 

attention, we are working with them, and, frankly, it would be to 

the benefit of companies around the world who are less concerned 

with human rights. 

Now, I believe we need a tough strategy to deal with the issue 

of Internet freedom. But I would prefer that that be through bilateral and multilateral challenges that treat it more as a diplomatic 

issue and a barrier to trade. 

115

Placing heavy restrictions on United States companies may be 

the simplest approach to take, and I know, after hearing some of 

the stories, it would make me feel better; but I am not certain that 

we would be doing what we should to deal with this very troubling 

issue and advance the cause of Internet freedom and, at the same 

time, potentially set back American competitiveness. 

I respect the deep concerns that the Committee Members have 

expressed. I appreciate, Mr. Chairman, that you have been moving 

this forward; but I with all due respect, I suggest that section 201 

may well have unintended consequences. 

The final point I would make—and I appreciate your referencing 

Reporters Without Borders’ report, because we have had them in 

and they provide some great information. But I would urge my colleagues, before we are finally adopting something here, to take a 

hard look at the list of countries that this includes. It is not just 

China; it is not just a few that are mentioned in the findings portion of this legislation. There are referenced in their 2006 report—

by my count, there are a couple dozen countries, including some 

issues that relate to the European Union that—I think we are getting a little further along here than we recognize, and it could foreclose a pretty broad sweep of American activity around the world 

for negligible results. 

I appreciate the courtesy and the time in offering this amendment, and I would respectfully request that my fellow Members of 

the Subcommittee considering approving it. 

Thank you. 

Mr. SMITH OF NEW JERSEY. Thank you. 

I do rise in opposition to the gentleman’s amendment, and I do 

so with respect. And I appreciate his comments a moment ago, but 

let me make a couple of points. 

The operative language that would be struck is very simple and 

it reads as such:

‘‘A prohibition of locating personally identifiable information in 

Internet-restricting countries. A United States business may 

not locate within a designated Internet-restricting country any 

electronic communication that contains any personally identifiable information.’’

Section 201, which that is, protects those United States Internet 

companies that are doing right in China and are not locating personally identifiable information in China. And that would include 

Microsoft; that would include Google. It would not include Yahoo. 

You know, you recall we had the Yahoo representative here testifying. There was a difference among our panelists. Google made it 

very clear that GMail and the information that would identify individuals is not accessible by the Chinese dictatorship. They can’t 

just ask for it and get it the way they do with Yahoo. 

I pointed out, as did other Members during that markup, or that 

hearing, I should say, that Shi Tao, an individual that got 10 years 

in Chinese prison simply for sending an e-mail—which obviously 

was in Yahoo because they locate that information inside the country of China, or the ability to access it. He got 10 years simply for 

telling other journalists, other individuals, via an e-mail about the 

116

restrictions that the government was putting on the commemoration of Tiananmen Square. 

In other words, they did a lockdown during the early days in 

June so that no one talks about the Tiananmen Square massacre. 

For that, he got 10 years. 

That would not have happened with GMail or one of the other 

Internet companies. So we are saying that there are some companies that are doing it right, and we are trying to make it clear that 

we want to encourage that, while profoundly discouraging, through 

the use of law, companies like Yahoo. 

So I think if this were to be knocked out, obviously we would 

have another argument at Full Committee. But it would really gut 

what I think is one of the essences of this legislation, and that is 

to prevent the secret police of China, or Belarus, or other Internetrestricting countries, from being able to find out who it is that is 

on the Internet, go to the door of that person, arrest them and put 

them into prison. That is the everyday, on-the-ground reality that 

we are trying to preclude with insertion of section 201, which in 

all due respect, the gentleman would strike. 

So I hope Members would join me in resisting this amendment. 

I am sure it is well-intentioned, but I think it is misguided. 

Would anyone else like to be heard on the amendment? 

Ms. MCCOLLUM. Mr. Chairman, I would like to yield my time to 

Mr. Blumenauer. 

Mr. SMITH OF NEW JERSEY. Sure. 

Mr. BLUMENAUER. I will not take my additional time and I don’t 

want to pose undue problems, but there are just two things that 

I would offer for the Committee’s consideration, because I do think 

there is a very real question about how broad this sweep is. And 

I would hope that nobody would move forward with section 201 unless you are confident about how narrow that is going to be confined. 

Second, to consider even if my earlier concern is one that you are 

comfortable with, the incentive that this provides to drive these 

companies offshore to have parts in wholly owned subsidiaries in 

these countries or to abandon markets. 

The final point is just—to consider that it goes beyond just the 

situation with China. I mentioned the Reporters Without Borders’ 

annual report where, included in this, are examples in Egypt, 

Saudi Arabia, Singapore, South Korea, where there have been 

abuses of the Internet, things that we would think inappropriate 

and, in some cases, unconscionable to politically interfere. 

The sweep of what is going on in other countries is quite broad, 

and it goes far beyond what we heard from China. Looking through 

Tunisia, Thailand, Nepal, the Maldives, as I mentioned, South 

Korea, Malaysia, Burma, Egypt, Bahrain, these are ones that I 

have been able to identify where there are—in fact, according to 

your own source here, Reporters Without Borders—where there has 

been interference, political repression and attempts at control; and 

that these tend to be growing with time. 

So obviously the intent of this legislation, I think, is honorable. 

I think it is important for us to work to try and protect. 

I want to encourage that—we have heard from all four of our 

companies, but I do hope that people will look hard at section 201 

117

for the reasons that I have mentioned. And I appreciate my colleague for yielding to me, and I will be quiet at this point. Thank 

you. 

Mr. SMITH OF NEW JERSEY. Thank you. The gentlewoman yields 

back. Anyone else. 

Mr. GREEN. Thank you, Mr. Chairman. I certainly appreciate the 

sincerity of the gentleman’s comments and I think these are issues 

that we should obviously look at as we go to Full Committee, and 

should have a more thorough debate and discussion. I am sure that 

we will. And I look forward to help moving this legislation along 

in that process and give the gentleman the opportunity to help discuss those further. 

Mr. SMITH OF NEW JERSEY. Thank you very much, Mr. Green. 

The question occurs on the amendment. 

All of those in favor, say aye. 

Those opposed, no. 

In the opinion of the Chair, the noes have it. 

Mr. BLUMENAUER. May I have a division on that? 

Mr. SMITH OF NEW JERSEY. The gentleman calls for a division. 

All of those in favor of the amendment will raise their hands. 

All of those opposed to it. 

In the opinion of the Chair, the noes have it. 

Any further amendments to the pending legislation? If not the 

question occurs on the amendment in the nature of a substitute. 

All of those in favor, say aye. 

All of those opposed, say no. 

The ayes have it and the amendment in the nature of a substitute is agreed to. 

The question occurs on the motion to report the bill favorably. 

All of those in favor, say aye. 

Those opposed, no. 

The ayes have it and the bill will be reported favorably. 

Without objection, the staff is directed to make any technical and 

conforming amendments. 

Pursuant to notice, I call up the final bill on today’s agenda, H.R. 

5382, the Central Asia Democracy and Human Rights Promotion 

Act of 2006 for purposes of markup and move its favorable recommendation to the Full Committee. 

Without objection, the bill will be considered as read and open 

for amendment at any point. 

[H.R. 5382 follows:]

118

1

I

109TH CONGRESS

2D SESSION H. R. 5382

To promote the development of democratic institutions and full respect for

human rights in the countries of Central Asia.

IN THE HOUSE OF REPRESENTATIVES

MAY 11, 2006

Mr. SMITH of New Jersey (for himself, Mr. MCINTYRE, Mr. MCCOTTER, Mr.

LANTOS, Mr. PITTS, Mr. BURTON of Indiana, and Mrs. JO ANN DAVIS

of Virginia) introduced the following bill; which was referred to the Committee on International Relations, and in addition to the Committee on

the Judiciary, for a period to be subsequently determined by the Speaker,

in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To promote the development of democratic institutions and

full respect for human rights in the countries of Central

Asia.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Central Asia Democ5 racy and Human Rights Promotion Act of 2006’’.

6 SEC. 2. FINDINGS.

7 Congress finds the following:


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1 (1) Fifteen years after independence, the five

2 countries of Central Asia—Kazakhstan, Kyrgyzstan,

3 Tajikistan, Turkmenistan, and Uzbekistan—are

4 struggling, to varying degrees, with their transition

5 from authoritarian rule to democratic societies that

6 fully respect human rights and uphold their freely

7 undertaken commitments as participating States in

8 the Organization for Security and Cooperation in

9 Europe (OSCE).

10 (2) As OSCE participating States, the countries

11 of Central Asia committed themselves in the Charter

12 of Paris for a New Europe to ‘‘build, consolidate

13 and strengthen democracy as the only system of gov14 ernment of our nations’’.

15 (3) In the Global War on Terrorism, the United

16 States is increasingly engaged with the countries of

17 Central Asia on a political, economic, and military

18 basis.

19 (4) In the Global War on Terrorism, policies

20 that bolster authoritarian governments which sup21 press and terrorize their own people will ultimately

22 be self defeating, as repression often breeds extre23 mism and terrorism.

24 (5) The Final Report of the National Commis25 sion on Terrorist Attacks Upon the United States


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1 (commonly referred to as the ‘‘9/11 Commission’’)

2 recommended: ‘‘[T]he United States must stand for

3 a better future. One of the lessons of the long Cold

4 War was that short-term gains in cooperating with

5 the most repressive and brutal governments were too

6 often outweighed by long-term setbacks for Amer7 ica’s stature and interests.’’.

8 (6) The September 2004 Final Report of the

9 Defense Science Board Task Force on Strategic

10 Communication stated: ‘‘The perception of intimate

11 U.S. support of tyrannies in the Muslim World is

12 perhaps the critical vulnerability in American strat13 egy. It strongly undercuts our message, while

14 strongly promoting that of the enemy.’’.

15 (7) In a speech to the United Nations General

16 Assembly on September 21, 2004, President George

17 W. Bush stated: ‘‘People everywhere are capable of

18 freedom, and worthy of freedom . . . For too long,

19 many nations, including my own, tolerated, even ex20 cused, oppression in the Middle East in the name of

21 stability. Oppression became common, but stability

22 never arrived. We must take a different approach.’’.

23 (8) In his second inaugural address on January

24 20, 2005, President George W. Bush stated: ‘‘For

25 as long as whole regions of the world simmer in reVerDate Mar 21 2002 16:32 Jul 18, 2006 Jkt 000000 PO 00000 Frm 00124 Fmt 6633 Sfmt 6601 F:\WORK\AGI\062206M\28368.000 HINTREL1 PsN: SHIRL

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1 sentment and tyranny—prone to ideologies that feed

2 hatred and excuse murder—violence will gather, and

3 multiply in destructive power, and cross the most de4 fended borders, and raise a mortal threat.’’. In this

5 address, President Bush further declared: ‘‘It is the

6 policy of the United States to seek and support the

7 growth of democratic movements and institutions in

8 every nation and culture, with the ultimate goal of

9 ending tyranny in our world.’’.

10 (9) The October 2005 National Intelligence

11 Strategy of the United States of America, issued by

12 the Director of National Intelligence, stated: ‘‘We

13 have learned at our peril that the lack of freedom in

14 one state endangers the peace and freedom of oth15 ers. . . . Self-sustaining democratic states are essen16 tial to world peace and development.’’.

17 (10) The March 2006 National Security Strat18 egy of the United States of America states: ‘‘The

19 United States must defend liberty and justice be20 cause these principles are right and true for all peo21 ple everywhere.’’.

22 (11) The National Security Strategy of the

23 United States of America further elaborates: ‘‘These

24 nonnegotiable demands of human dignity are pro25 tected most securely in democracies. The United


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1 States Government will work to advance human dig2 nity in word and deed, speaking out for freedom and

3 against violations of human rights and allocating ap4 propriate resources to advance these ideals.’’.

5 SEC. 3. SENSE OF THE CONGRESS.

6 It is the sense of Congress that—

7 (1) the United States should support those gov8 ernments and individuals making substantial and

9 sustained progress to establish democracy, guarantee

10 the rule of law, and protect human rights;

11 (2) the United States should use every peaceful

12 means at its disposal to encourage the countries of

13 Central Asia to provide greater respect for democ14 racy, the rule of law, and human rights, thereby pro15 moting the long-term stability and security of the

16 Central Asian region, and ensure that all assistance

17 programs for the Central Asian region support and

18 communicate this goal; and

19 (3) the United States should seek and support

20 the growth of democratic movements and institu21 tions in every nation and culture, with the ultimate

22 goal of ending tyranny in our world.


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1 SEC. 4. ASSISTANCE TO PROMOTE DEMOCRACY, RULE OF

2 LAW, AND HUMAN RIGHTS IN THE COUN3 TRIES OF CENTRAL ASIA.

4 (a) PURPOSES OF ASSISTANCE.—The purposes of as5 sistance under this section include—

6 (1) to encourage free and fair presidential, par7 liamentary, and local elections in the countries of

8 Central Asia, conducted in a manner consistent with

9 Organization for Security and Cooperation in Eu10 rope (OSCE) and internationally accepted stand11 ards;

12 (2) to ensure in the countries of Central Asia

13 the full respect for all human rights, including free14 dom of expression and the media, freedom of reli15 gion and association, prevention of torture, and the

16 end of human trafficking from, to, and through the

17 Central Asian region, conducted in a manner con18 sistent with OSCE and internationally accepted

19 standards; and

20 (3) to develop rule of law, in particular inde21 pendent judicial systems and professional law en22 forcement, and to combat corruption, conducted in a

23 manner consistent with OSCE and internationally

24 accepted standards.

25 (b) AUTHORIZATION FOR ASSISTANCE.—


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1 (1) IN GENERAL.—To carry out the purposes of

2 subsection (a), the President is authorized to provide

3 assistance for the countries of Central Asia to sup4 port the activities described in subsection (c).

5 (2) LIMITATION.—The authority to provide as6 sistance for the countries of Central Asia under

7 paragraph (1) shall be subject to all applicable limi8 tations on assistance for such countries and other

9 requirements relating to assistance for such coun10 tries under any Act making appropriations for for11 eign operations, export financing, and related pro12 grams.

13 (c) ACTIVITIES SUPPORTED.—Activities that may be

14 supported by assistance under subsection (b) include—

15 (1) observing elections and promoting free and

16 fair electoral processes;

17 (2) encouraging the development of sustainable

18 civic structures representative of society, such as en19 vironmental groups, independent labor unions, demo20 cratic political parties, and other community-based

21 organizations;

22 (3) maintaining libraries in the languages of

23 Central Asia to explain democracy in the United

24 States;


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•HR 5382 IH

1 (4) developing independent media to work in

2 the countries of Central Asia, supported by

3 nonstate-controlled printing facilities;

4 (5) independent radio and television broad5 casting to and within the countries of Central Asia;

6 (6) encouraging the liberalization of laws affect7 ing religious practice and their enforcement to pro8 mote greater freedoms for individuals to meet alone

9 or in community with others, to move freely, and in

10 the sharing of beliefs;

11 (7) educating law enforcement officials with re12 spect to the existence and enforcement of legal pro13 hibitions concerning torture;

14 (8) prosecuting human traffickers, as well as

15 providing increased police training and education ef16 forts, including on forced labor;

17 (9) training and assistance for judicial reform

18 and development;

19 (10) training in democratic governance and

20 human rights for nationals and exiles of the coun21 tries of Central Asia who are unable to live in their

22 own country due to fear of persecution;

23 (11) training in effective human rights and hu24 manitarian law as a part of non-lethal training pro25 grams for units of the security forces of the counVerDate Mar 21 2002 16:32 Jul 18, 2006 Jkt 000000 PO 00000 Frm 00129 Fmt 6633 Sfmt 6601 F:\WORK\AGI\062206M\28368.000 HINTREL1 PsN: SHIRL

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•HR 5382 IH

1 tries of Central Asia (other than any unit of the se2 curity forces of such countries with respect to which

3 the Secretary of State has credible evidence that

4 such unit has committed gross violations of human

5 rights);

6 (12) establishing programs to combat corrup7 tion and support good governance; and

8 (13) other activities consistent with the pur9 poses of this section.

10 (d) REPORT.—

11 (1) IN GENERAL.—Not later than 90 days after

12 the date of the enactment of this Act, and annually

13 thereafter, the President shall transmit to the appro14 priate congressional committees a report on assist15 ance provided for the countries of Central Asia

16 under this section for the one-year period ending 30

17 days prior to the transmission of the report.

18 (2) CONTENTS.—The report shall include with

19 respect to each country of Central Asia a detailed

20 description of each of the following:

21 (A) The types and amount of assistance

22 provided under this section, including the types

23 and amount of defense articles and defense

24 services and the amount of financial assistance.

25 In addition, the name of each department or


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•HR 5382 IH

1 agency of the Government of the United States

2 that provides assistance under this section and

3 the name of each recipient of such assistance.

4 (B) The use of such assistance, including

5 the use of defense articles, defense services, and

6 financial assistance, by units of the armed

7 forces, border guards, or other security forces

8 of the country.

9 (e) AUTHORIZATION OF APPROPRIATIONS.—

10 (1) IN GENERAL.—There are authorized to be

11 appropriated to the President to carry out this sec12 tion $118,200,000 for each of the fiscal years 2007

13 and 2008.

14 (2) AVAILABILITY.—Amounts appropriated pur15 suant to the authorization of appropriations under

16 paragraph (1) are authorized to remain available

17 until expended.

18 SEC. 5. RADIO BROADCASTING TO THE COUNTRIES OF CEN19 TRAL ASIA.

20 (a) PURPOSE.—The purpose of this section is to au21 thorize increased support for surrogate radio broadcasting

22 to the countries of Central Asia that will facilitate the

23 unhindered dissemination of information in the Central

24 Asian region regarding the activities supported by this

25 Act.


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•HR 5382 IH

1 (b) AUTHORIZATION OF APPROPRIATIONS.—In addi2 tion to such sums as are otherwise authorized to be appro3 priated, there are authorized to be appropriated

4 $15,000,000 for each of the fiscal years 2007 and 2008

5 for Voice of America and RFE/RL, Incorporated for ex6 panded radio broadcasting to the people of the countries

7 of Central Asia in languages spoken in Central Asia, in8 cluding broadcasting in the Russian language, and the es9 tablishment of Internet websites.

10 (c) REPORT.—Not later than 120 days after the date

11 of the enactment of this Act, the Secretary of State shall

12 submit to the appropriate congressional committees a re13 port on how funds are appropriated and allocated pursu14 ant to the authorizations of appropriations under sub15 section (b) and section 4(e) will be used to provide short16 wave, AM, and FM broadcasting that covers the Central

17 Asian region and delivers independent and uncensored

18 programming.

19 SEC. 6. LIMITATION ON UNITED STATES ASSISTANCE TO

20 THE GOVERNMENTS OF COUNTRIES OF CEN21 TRAL ASIA.

22 (a) LIMITATION.—

23 (1) IN GENERAL.—Amounts made available by

24 an Act making appropriations for foreign operations,

25 export financing, and related programs for a fiscal


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•HR 5382 IH

1 year may be provided to the government of a coun2 try of Central Asia only if the Secretary of State

3 certifies to the appropriate congressional committees

4 that the government of the country has made signifi5 cant improvements in the protection of human rights

6 during the preceding one-year period, including in

7 the areas of democratization, speech and press free8 doms, freedom of religion, efforts to combat torture,

9 and the rule of law.

10 (2) ADDITIONAL LIMITATION.—The limitation

11 on assistance for the government of a country of

12 Central Asia under paragraph (1) is in addition to

13 any other applicable limitation on assistance for

14 such government and any other requirement relating

15 to assistance for such government under any Act

16 making appropriations for foreign operations, export

17 financing, and related programs.

18 (b) WAIVER.—The Secretary of State may waive the

19 application of subsection (a) with respect to the govern20 ment of a country of Central Asia if the Secretary deter21 mines and reports to the appropriate congressional com22 mittees that such a waiver is important to the national

23 security of the United States and includes the reasons for

24 the determination.


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1 (c) USE OF WITHHELD ASSISTANCE.—Any amounts

2 withheld from obligation and expenditure for assistance to

3 the government of a country of Central Asia by reason

4 of the application of subsection (a) for a fiscal year are

5 authorized to be made available for assistance for training

6 relating to democratic governance and human rights for

7 domestic civil society groups or nationals or exiles of the

8 Central Asian country who are unable to live in their own

9 country due to fear of persecution.

10 (d) EFFECTIVE DATE.—The requirements of this

11 section apply with respect to funds appropriated for assist12 ance for the governments of the countries of Central Asia

13 for fiscal years 2007 and 2008.

14 SEC. 7. SANCTIONS AGAINST UZBEKISTAN.

15 (a) LIMITATION ON ASSISTANCE.—Amounts made

16 available by an Act making appropriations for foreign op17 erations, export financing, and related programs for a fis18 cal year may be provided to the central Government of

19 Uzbekistan only if the Secretary of State determines and

20 reports to the appropriate congressional committees

21 that—

22 (1) the Government of Uzbekistan is making

23 substantial and continuing progress in meeting its

24 commitments under the ‘Declaration on the Stra25 tegic Partnership and Cooperation Framework BeVerDate Mar 21 2002 16:32 Jul 18, 2006 Jkt 000000 PO 00000 Frm 00134 Fmt 6633 Sfmt 6601 F:\WORK\AGI\062206M\28368.000 HINTREL1 PsN: SHIRL

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1 tween the Republic of Uzbekistan and the United

2 States of America’, including respect for human

3 rights, establishing a genuine multi-party system,

4 and ensuring free and fair elections, freedom of ex5 pression, and the independence of the media; and

6 (2) a credible international investigation of the

7 May 13, 2005, shootings in Andijan is underway

8 with the support of the Government of Uzbekistan.

9 (b) IDENTIFICATION OF INDIVIDUALS TO BE SUB10 JECT TO RESTRICTIONS.—The Secretary of State shall—

11 (1) identify Uzbek officials, their immediate

12 family members, and any associates of those so

13 named, implicated in the Andijan massacre, involved

14 through the chain of command in such abuses, or in15 volved in other gross violations of human rights com16 mitted in Uzbekistan; and

17 (2) notify the Secretary of the Treasury, Attor18 ney General, and the appropriate congressional com19 mittees of such identification.

20 (c) FREEZING OF ASSETS.—

21 (1) IN GENERAL.—The Secretary of the Treas22 ury shall immediately block any assets, property,

23 transactions in foreign exchange, currency, or securi24 ties, and transfers of credit or payments between,

25 by, through, or to any banking institution under the


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1 jurisdiction of the United States of an individual

2 identified under subsection (b) of this section.

3 (2) REPORTING REQUIREMENT.—Not later than

4 14 days after a decision to freeze the assets identi5 fied in this subsection of any individual identified

6 under subsection (b), the Secretary of the Treasury

7 shall—

8 (A) report the name of such individual to

9 the appropriate congressional committees; and

10 (B) require any United States financial in11 stitution holding such funds or assets shall

12 promptly report those funds and assets to the

13 Office of Foreign Assets Control.

14 (d) VISA BAN.—The Secretary of State may not issue

15 any visa to, and the Attorney General may not admit to

16 the United States, any individual identified under sub17 section (b) of this section.

18 (e) WAIVER.—The Secretary of the Treasury may

19 waive the prohibition in subsection (c) and the Secretary

20 of State may waive the prohibition in subsection (d) if the

21 Secretary concerned determines and certifies to the appro22 priate congressional committees that it is important to the

23 national security of the United States to do so.

24 (f) MUNITIONS EXPORT LICENSES.—The Secretary

25 of State shall prohibit the export to Uzbekistan of any


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•HR 5382 IH

1 item, including the issuance of a license for the export of

2 any item, on the United States Munitions List. The Sec3 retary of Commerce shall prohibit the export to

4 Uzbekistan of any item on the Commerce Control List of

5 dual-use items in the Export Administration Regulations.

6 (g) REPORT REGARDING UNITED STATES POLICY

7 TOWARD UZBEKISTAN.—

8 (1) IN GENERAL.—Not later than 90 days after

9 the date of the enactment of this Act, the Secretary

10 of State shall submit to the appropriate congres11 sional committees a report regarding United States

12 policy toward Uzbekistan.

13 (2) CONTENTS.—The report required by para14 graph (1) shall include a detailed description of each

15 of the following:

16 (A) The objectives of United States policy

17 toward Uzbekistan with respect to democratiza18 tion, human rights, economic reforms, regional

19 security, and the war on terrorism.

20 (B) The strategy of the Government of the

21 United States for achieving the objectives de22 scribed under subparagraph (A).

23 (C) The steps taken by the Government of

24 the United States to advance the strategy de25 scribed under subparagraph (B) since the masVerDate Mar 21 2002 16:32 Jul 18, 2006 Jkt 000000 PO 00000 Frm 00137 Fmt 6633 Sfmt 6601 F:\WORK\AGI\062206M\28368.000 HINTREL1 PsN: SHIRL

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1 sacre in Andijan and the decision of the Gov2 ernment of Uzbekistan to expel United States

3 military forces from Uzbekistan.

4 (3) FORM.—The report required by paragraph

5 (1) shall be in unclassified form but may contain a

6 classified annex.

7 (h) EFFECTIVE DATE.—The requirements of—

8 (1) subsection (a) apply with respect to funds

9 appropriated for assistance for the Government of

10 Uzbekistan for fiscal years 2007 and 2008; and

11 (2) subsections (b) through (f) apply during fis12 cal years 2007 and 2008.

13 SEC. 8. REPORT.

14 Prior to the initial obligation of assistance for the

15 government of a country of Central Asia for a fiscal year,

16 the Secretary of State shall submit to the appropriate con17 gressional committees a report describing—

18 (1) whether the government is forcibly return19 ing Uzbeks or other refugees who have fled violence

20 and political persecution, in violation of the 1951

21 Geneva Convention Relating to the Status of Refu22 gees and the Convention Against Torture and Other

23 Forms of Cruel, Inhuman, or Degrading Treatment;

24 (2) efforts made by the United States to pre25 vent such returns; and


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1 (3) the response of the government to those sit2 uations.

3 SEC. 9. DEFINITIONS.

4 In this Act:

5 (1) APPROPRIATE CONGRESSIONAL COMMIT6 TEES.—The term ‘‘appropriate congressional com7 mittees’’ means—

8 (A) the Committee on Appropriations and

9 the Committee on International Relations of the

10 House of Representatives; and

11 (B) the Committee on Appropriations and

12 the Committee on Foreign Relations of the Sen13 ate.

14 (2) COUNTRIES OF CENTRAL ASIA.—The term

15 ‘‘countries of Central Asia’’ means Kazakhstan,

16 Kyrgyzstan, Tajikistan, Turkmenistan, and

17 Uzbekistan.

Æ


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Mr. SMITH OF NEW JERSEY. I do have an amendment in the nature of a substitute. Without objection, it will be considered as 

read. 

[The information referred to follows:]

137

1

H.L.C.

AMENDMENT IN THE NATURE OF A SUBSTITUTE

TO H.R. 5382

OFFERED BY MR. SMITH OF NEW JERSEY

Strike all after the enacting clause and insert the

following:

1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Central Asia Democ3 racy and Human Rights Promotion Act of 2006’’.

4 SEC. 2. FINDINGS.

5 Congress finds the following:

6 (1) Fifteen years after independence, the five

7 countries of Central Asia—Kazakhstan, Kyrgyzstan,

8 Tajikistan, Turkmenistan, and Uzbekistan—are

9 struggling, to varying degrees, with their transition

10 from authoritarian rule to democratic societies that

11 fully respect human rights and uphold their freely

12 undertaken commitments as participating States in

13 the Organization for Security and Cooperation in

14 Europe (OSCE).

15 (2) As OSCE participating States, the countries

16 of Central Asia committed themselves in the Charter

17 of Paris for a New Europe to ‘‘build, consolidate


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1 and strengthen democracy as the only system of gov2 ernment of our nations’’.

3 (3) In the Global War on Terrorism, the United

4 States is increasingly engaged with the countries of

5 Central Asia on a political, economic, and military

6 basis.

7 (4) In the Global War on Terrorism, policies

8 that bolster authoritarian governments which sup9 press and terrorize their own people will ultimately

10 be self defeating, as repression often breeds extre11 mism and terrorism.

12 (5) The Final Report of the National Commis13 sion on Terrorist Attacks Upon the United States

14 (commonly referred to as the ‘‘9/11 Commission’’)

15 recommended: ‘‘[T]he United States must stand for

16 a better future. One of the lessons of the long Cold

17 War was that short-term gains in cooperating with

18 the most repressive and brutal governments were too

19 often outweighed by long-term setbacks for Amer20 ica’s stature and interests.’’.

21 (6) The September 2004 Final Report of the

22 Defense Science Board Task Force on Strategic

23 Communication stated: ‘‘The perception of intimate

24 U.S. support of tyrannies in the Muslim World is

25 perhaps the critical vulnerability in American stratVerDate Mar 21 2002 16:32 Jul 18, 2006 Jkt 000000 PO 00000 Frm 00142 Fmt 6633 Sfmt 6601 F:\WORK\AGI\062206M\28368.000 HINTREL1 PsN: SHIRL

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1 egy. It strongly undercuts our message, while

2 strongly promoting that of the enemy.’’.

3 (7) In a speech to the United Nations General

4 Assembly on September 21, 2004, President George

5 W. Bush stated: ‘‘People everywhere are capable of

6 freedom, and worthy of freedom . . . For too long,

7 many nations, including my own, tolerated, even ex8 cused, oppression in the Middle East in the name of

9 stability. Oppression became common, but stability

10 never arrived. We must take a different approach.’’.

11 (8) In his second inaugural address on January

12 20, 2005, President George W. Bush stated: ‘‘For

13 as long as whole regions of the world simmer in re14 sentment and tyranny—prone to ideologies that feed

15 hatred and excuse murder—violence will gather, and

16 multiply in destructive power, and cross the most de17 fended borders, and raise a mortal threat.’’. In this

18 address, President Bush further declared: ‘‘It is the

19 policy of the United States to seek and support the

20 growth of democratic movements and institutions in

21 every nation and culture, with the ultimate goal of

22 ending tyranny in our world.’’.

23 (9) The October 2005 National Intelligence

24 Strategy of the United States of America, issued by

25 the Director of National Intelligence, stated: ‘‘We


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1 have learned at our peril that the lack of freedom in

2 one state endangers the peace and freedom of oth3 ers. . . . Self-sustaining democratic states are essen4 tial to world peace and development.’’.

5 (10) The March 2006 National Security Strat6 egy of the United States of America states: ‘‘The

7 United States must defend liberty and justice be8 cause these principles are right and true for all peo9 ple everywhere.’’.

10 (11) The National Security Strategy of the

11 United States of America further elaborates: ‘‘These

12 nonnegotiable demands of human dignity are pro13 tected most securely in democracies. The United

14 States Government will work to advance human dig15 nity in word and deed, speaking out for freedom and

16 against violations of human rights and allocating ap17 propriate resources to advance these ideals.’’.

18 SEC. 3. SENSE OF THE CONGRESS.

19 It is the sense of Congress that—

20 (1) the United States should support those gov21 ernments and individuals making substantial and

22 sustained progress to establish democracy, guarantee

23 the rule of law, and protect human rights;

24 (2) the United States should use every peaceful

25 means at its disposal to encourage the countries of


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1 Central Asia to provide greater respect for democ2 racy, the rule of law, and human rights, thereby pro3 moting the long-term stability and security of the

4 Central Asian region, and ensure that all assistance

5 programs for the Central Asian region support and

6 communicate this goal; and

7 (3) the United States should seek and support

8 the growth of democratic movements and institu9 tions in every nation and culture, with the ultimate

10 goal of ending tyranny in our world.

11 SEC. 4. SUPPORT FOR DEMOCRACY, RULE OF LAW, AND

12 HUMAN RIGHTS IN THE COUNTRIES OF CEN13 TRAL ASIA.

14 (a) AMENDMENT.—Part I of the Foreign Assistance

15 Act of 1961 (22 U.S.C. 2151 et seq.) is amended by add16 ing at the end the following new chapter:

17 ‘‘CHAPTER 13—SUPPORT FOR DEMOC18 RACY, RULE OF LAW, AND HUMAN

19 RIGHTS IN THE COUNTRIES OF CEN20 TRAL ASIA

21 ‘‘SEC. 499N. ASSISTANCE TO PROMOTE DEMOCRACY, RULE

22 OF LAW, AND HUMAN RIGHTS.

23 ‘‘(a) PURPOSES OF ASSISTANCE.—The purposes of

24 assistance under this section include—


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1 ‘‘(1) to encourage free and fair presidential,

2 parliamentary, and local elections in the countries of

3 Central Asia, conducted in a manner consistent with

4 Organization for Security and Cooperation in Eu5 rope (OSCE) and internationally accepted stand6 ards;

7 ‘‘(2) to ensure in the countries of Central Asia

8 the full respect for all human rights, including free9 dom of expression and the media, freedom of reli10 gion and association, prevention of torture, and the

11 end of trafficking in persons from, to, and through

12 the Central Asian region, conducted in a manner

13 consistent with OSCE and internationally accepted

14 standards; and

15 ‘‘(3) to develop rule of law, in particular inde16 pendent judicial systems and professional law en17 forcement, and to combat corruption, conducted in a

18 manner consistent with OSCE and internationally

19 accepted standards.

20 ‘‘(b) AUTHORIZATION FOR ASSISTANCE.—

21 ‘‘(1) IN GENERAL.—To carry out the purposes

22 of subsection (a), the President, acting through the

23 Secretary of State and the Administrator of the

24 United States Agency for International Develop25 ment, is authorized to provide assistance for the


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1 countries of Central Asia to support the activities

2 described in subsection (c).

3 ‘‘(2) LIMITATION.—The authority to provide as4 sistance for the countries of Central Asia under

5 paragraph (1) shall be subject to all applicable limi6 tations on assistance for such countries and other

7 requirements relating to assistance for such coun8 tries under any Act making appropriations for for9 eign operations, export financing, and related pro10 grams.

11 ‘‘(c) ACTIVITIES SUPPORTED.—Activities that may

12 be supported by assistance under subsection (b) include—

13 ‘‘(1) observing elections and promoting free and

14 fair electoral processes;

15 ‘‘(2) encouraging the development of sustain16 able civic structures representative of society, such

17 as environmental groups, independent labor unions,

18 democratic political parties, and other community19 based organizations;

20 ‘‘(3) maintaining libraries in the languages of

21 Central Asia to explain democracy in the United

22 States;

23 ‘‘(4) developing independent media to work in

24 the countries of Central Asia, supported by

25 nonstate-controlled printing facilities;


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1 ‘‘(5) independent radio and television broad2 casting to and within the countries of Central Asia;

3 ‘‘(6) encouraging the liberalization of laws af4 fecting religious practice and their enforcement to

5 promote greater freedoms for individuals to meet

6 alone or in community with others, to move freely,

7 and in the sharing of beliefs;

8 ‘‘(7) educating law enforcement officials with

9 respect to the existence and enforcement of legal

10 prohibitions concerning torture;

11 ‘‘(8) prosecuting human traffickers, as well as

12 providing increased police training and education ef13 forts, including on forced labor;

14 ‘‘(9) training and assistance for judicial reform

15 and development;

16 ‘‘(10) training in democratic governance and

17 human rights for nationals and exiles of the coun18 tries of Central Asia who are unable to live in their

19 own country due to fear of persecution;

20 ‘‘(11) training in effective human rights and

21 humanitarian law as a part of non-lethal training

22 programs for units of the security forces of the

23 countries of Central Asia (other than any unit of the

24 security forces of such countries with respect to

25 which the Secretary of State has credible evidence


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1 that such unit has committed gross violations of

2 human rights);

3 ‘‘(12) establishing programs to combat corrup4 tion and support good governance; and

5 ‘‘(13) other activities consistent with the pur6 poses of this section.

7 ‘‘(d) REPORT.—

8 ‘‘(1) IN GENERAL.—Not later than 90 days

9 after the date of the enactment of Central Asia De10 mocracy and Human Rights Promotion Act of 2006,

11 and annually thereafter, the President shall transmit

12 to the appropriate congressional committees a report

13 on assistance provided for the countries of Central

14 Asia under this section for the one-year period end15 ing 30 days prior to the transmission of the report.

16 ‘‘(2) CONTENTS.—The report shall include with

17 respect to each country of Central Asia a detailed

18 description of each of the following:

19 ‘‘(A) The types and amount of assistance

20 provided under this section, including the types

21 and amount of defense articles and defense

22 services and the amount of financial assistance.

23 In addition, the name of each department or

24 agency of the Government of the United States


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1 that provides assistance under this section and

2 the name of each recipient of such assistance.

3 ‘‘(B) The use of such assistance, including

4 the use of defense articles, defense services, and

5 financial assistance, by units of the armed

6 forces, border guards, or other security forces

7 of the country.

8 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—

9 ‘‘(1) IN GENERAL.—There are authorized to be

10 appropriated to the President to carry out this sec11 tion $97,000,000 for each of the fiscal years 2007

12 and 2008.

13 ‘‘(2) AVAILABILITY.—Amounts appropriated

14 pursuant to the authorization of appropriations

15 under paragraph (1) are authorized to remain avail16 able until expended.

17 ‘‘SEC. 499O. RADIO BROADCASTING.

18 ‘‘(a) PURPOSE.—The purpose of this section is to au19 thorize increased support for surrogate radio broadcasting

20 to the countries of Central Asia that will facilitate the

21 unhindered dissemination of information in the Central

22 Asian region regarding the activities supported by this

23 chapter.

24 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—In ad25 dition to such sums as are otherwise authorized to be apVerDate Mar 21 2002 16:32 Jul 18, 2006 Jkt 000000 PO 00000 Frm 00150 Fmt 6633 Sfmt 6601 F:\WORK\AGI\062206M\28368.000 HINTREL1 PsN: SHIRL

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1 propriated, there are authorized to be appropriated

2 $10,000,000 for each of the fiscal years 2007 and 2008

3 for Voice of America and RFE/RL, Incorporated for ex4 panded radio broadcasting to the people of the countries

5 of Central Asia in languages spoken in Central Asia, in6 cluding broadcasting in the Russian language, and the es7 tablishment of Internet websites.

8 ‘‘SEC. 499P. REPORT.

9 ‘‘Prior to the initial obligation of assistance for the

10 government of a country of Central Asia for a fiscal year,

11 the Secretary of State shall submit to the appropriate con12 gressional committees a report describing—

13 ‘‘(1) whether the government is forcibly return14 ing Uzbeks or other refugees who have fled violence

15 and political persecution, in violation of the 1951

16 Geneva Convention Relating to the Status of Refu17 gees and the Convention Against Torture and Other

18 Forms of Cruel, Inhuman, or Degrading Treatment;

19 ‘‘(2) efforts made by the United States to pre20 vent such returns; and

21 ‘‘(3) the response of the government to those

22 situations.

23 ‘‘SEC. 499Q. DEFINITIONS.

24 ‘‘In this chapter:


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1 ‘‘(1) APPROPRIATE CONGRESSIONAL COMMIT2 TEES.—The term ‘appropriate congressional com3 mittees’ means—

4 ‘‘(A) the Committee on Appropriations and

5 the Committee on International Relations of the

6 House of Representatives; and

7 ‘‘(B) the Committee on Appropriations and

8 the Committee on Foreign Relations of the Sen9 ate.

10 ‘‘(2) COUNTRIES OF CENTRAL ASIA.—The term

11 ‘countries of Central Asia’ means Kazakhstan,

12 Kyrgyzstan, Tajikistan, Turkmenistan, and

13 Uzbekistan.’’.

14 (b) REPORT.—Not later than 120 days after the date

15 of the enactment of this Act, the Secretary of State shall

16 submit to the appropriate congressional committees a re17 port on how funds are appropriated and allocated pursu18 ant to the authorizations of appropriations under sections

19 499N(e) and 499O(b) of the Foreign Assistance Act of

20 1961 (as added by subsection (a) of this section) will be

21 used to provide shortwave, AM, and FM broadcasting that

22 covers the Central Asian region and delivers independent

23 and uncensored programming.


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1 SEC. 5. LIMITATION ON ASSISTANCE TO THE GOVERN2 MENTS OF COUNTRIES OF CENTRAL ASIA.

3 (a) AMENDMENTS.—Chapter 1 of part III of the For4 eign Assistance Act of 1961 (22 U.S.C. 2351 et seq.) is

5 amended—

6 (1) by redesignating the second section 620G

7 (as added by section 149 of Public Law 104–164

8 (110 Stat. 1436)) as section 620J; and

9 (2) by adding at the end the following new sec10 tion:

11 ‘‘SEC. 620K. LIMITATION ON ASSISTANCE TO THE GOVERN12 MENTS OF COUNTRIES OF CENTRAL ASIA.

13 ‘‘(a) LIMITATION.—

14 ‘‘(1) IN GENERAL.—Amounts made available by

15 an Act making appropriations for foreign operations,

16 export financing, and related programs for a fiscal

17 year may be used to provide assistance to the gov18 ernment of a country of Central Asia only if the Sec19 retary of State certifies to the appropriate congres20 sional committees that the government of the coun21 try has made significant improvements in the protec22 tion of human rights during the preceding one-year

23 period, including in the areas of democratization,

24 speech and press freedoms, freedom of religion, ef25 forts to combat torture, and the rule of law.


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1 ‘‘(2) ADDITIONAL LIMITATION.—The limitation

2 on assistance for the government of a country of

3 Central Asia under paragraph (1) is in addition to

4 any other applicable limitation on assistance for

5 such government and any other requirement relating

6 to assistance for such government under any Act

7 making appropriations for foreign operations, export

8 financing, and related programs.

9 ‘‘(b) WAIVER.—The Secretary of State may waive the

10 application of subsection (a) with respect to the govern11 ment of a country of Central Asia if the Secretary deter12 mines and reports to the appropriate congressional com13 mittees that such a waiver is important to the national

14 security of the United States and includes the reasons for

15 the determination.

16 ‘‘(c) USE OF WITHHELD ASSISTANCE.—Any

17 amounts withheld from obligation and expenditure for as18 sistance to the government of a country of Central Asia

19 by reason of the application of subsection (a) for a fiscal

20 year are authorized to be made available for assistance

21 for training relating to democratic governance and human

22 rights for domestic civil society groups or nationals or ex23 iles of the Central Asian country who are unable to live

24 in their own country due to fear of persecution.


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1 ‘‘(d) EXEMPTION OF CERTAIN ASSISTANCE.—The

2 limitation on assistance for the government of a country

3 of Central Asia under subsection (a) shall not apply with

4 respect to—

5 ‘‘(1) disaster relief assistance, including any as6 sistance under chapter 9 of part I of this Act;

7 ‘‘(2) assistance which involves the provision of

8 food (including monetization of food) or medicine;

9 ‘‘(3) assistance for refugees and internally dis10 placed persons;

11 ‘‘(4) assistance to combat HIV/AIDS, including

12 any assistance under section 104A of this Act;

13 ‘‘(5) assistance for people-to-people exchanges;

14 and

15 ‘‘(6) assistance to combat trafficking in per16 sons, including any assistance under the Trafficking

17 Victims Protection Act of 2000 (division A of Public

18 Law 106–386; 22 U.S.C. 7101 et seq.).

19 ‘‘(e) DEFINITIONS.—In this section:

20 ‘‘(1) APPROPRIATE CONGRESSIONAL COMMIT21 TEES.—The term ‘appropriate congressional com22 mittees’ means—

23 ‘‘(A) the Committee on Appropriations and

24 the Committee on International Relations of the

25 House of Representatives; and


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1 ‘‘(B) the Committee on Appropriations and

2 the Committee on Foreign Relations of the Sen3 ate.

4 ‘‘(2) COUNTRIES OF CENTRAL ASIA.—The term

5 ‘countries of Central Asia’ means Kazakhstan,

6 Kyrgyzstan, Tajikistan, Turkmenistan, and

7 Uzbekistan.’’.

8 (b) EFFECTIVE DATE.—The requirements of section

9 620K of the Foreign Assistance Act of 1961 (as added

10 by subsection (a) of this section) apply with respect to

11 funds appropriated for assistance for the governments of

12 the countries of Central Asia for fiscal years 2007 and

13 2008.

14 SEC. 6. SANCTIONS AGAINST UZBEKISTAN.

15 (a) AMENDMENT.—Chapter 1 of part III of the For16 eign Assistance Act of 1961 (22 U.S.C. 2351 et seq.), as

17 amended by section 5(a)(2) of this Act, is further amended

18 by adding at the end the following new section:

19 ‘‘SEC. 620L. SANCTIONS AGAINST UZBEKISTAN.

20 ‘‘(a) LIMITATION ON ASSISTANCE.—Amounts made

21 available by an Act making appropriations for foreign op22 erations, export financing, and related programs for a fis23 cal year may be used to provide assistance (including the

24 transfer of excess defense articles) to the central Govern25 ment of Uzbekistan only if the Secretary of State deterVerDate Mar 21 2002 16:32 Jul 18, 2006 Jkt 000000 PO 00000 Frm 00156 Fmt 6633 Sfmt 6601 F:\WORK\AGI\062206M\28368.000 HINTREL1 PsN: SHIRL

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1 mines and reports to the appropriate congressional com2 mittees that—

3 ‘‘(1) the Government of Uzbekistan is making

4 substantial and continuing progress in meeting its

5 commitments under the ‘Declaration on the Stra6 tegic Partnership and Cooperation Framework Be7 tween the Republic of Uzbekistan and the United

8 States of America’, including respect for human

9 rights, establishing a genuine multi-party system,

10 and ensuring free and fair elections, freedom of ex11 pression, and the independence of the media; and

12 ‘‘(2) a credible international investigation of the

13 May 13, 2005, shootings in Andijan is underway

14 with the support of the Government of Uzbekistan.

15 ‘‘(b) IDENTIFICATION OF INDIVIDUALS TO BE SUB16 JECT TO RESTRICTIONS.—The Secretary of State shall—

17 ‘‘(1) identify—

18 ‘‘(A) senior officials of the Government of

19 Uzbekistan, including the President, Prime

20 Minister, and members of the Cabinet of Min21 isters, the immediate family members of such

22 officials, and any associates of such officials

23 who are implicated in the Andijan massacre, in24 volved through the chain of command in such


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1 massacre, or involved in other gross violations

2 of human rights committed in Uzbekistan; and

3 ‘‘(B) other individuals who provide sub4 stantial economic or political support for senior

5 officials of the Government of Uzbekistan; and

6 ‘‘(2) notify the Secretary of the Treasury, At7 torney General, and the appropriate congressional

8 committees of such identification.

9 ‘‘(c) FREEZING OF ASSETS.—

10 ‘‘(1) IN GENERAL.—The Secretary of the

11 Treasury shall immediately block any assets, prop12 erty, transactions in foreign exchange, currency, or

13 securities, and transfers of credit or payments be14 tween, by, through, or to any banking institution

15 under the jurisdiction of the United States of an in16 dividual identified under subsection (b) of this sec17 tion.

18 ‘‘(2) REPORTING REQUIREMENT.—Not later

19 than 14 days after a decision to freeze the assets

20 identified in this subsection of any individual identi21 fied under subsection (b), the Secretary of the

22 Treasury shall—

23 ‘‘(A) report the name of such individual to

24 the appropriate congressional committees; and


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1 ‘‘(B) require any United States financial

2 institution holding such funds or assets shall

3 promptly report those funds and assets to the

4 Office of Foreign Assets Control.

5 ‘‘(d) VISA BAN.—The Secretary of State may not

6 issue any visa to, and the Attorney General may not admit

7 to the United States, any individual identified under sub8 section (b) of this section.

9 ‘‘(e) WAIVER.—The Secretary of the Treasury may

10 waive the prohibition in subsection (c) and the Secretary

11 of State may waive the prohibition in subsection (d) if the

12 Secretary concerned determines and certifies to the appro13 priate congressional committees that it is important to the

14 national security of the United States to do so.

15 ‘‘(f) MUNITIONS EXPORT LICENSES.—The Secretary

16 of State shall prohibit the export to Uzbekistan of any

17 item, including the issuance of a license for the export of

18 any item, on the United States Munitions List. The Sec19 retary of Commerce shall prohibit the export to

20 Uzbekistan of any item on the Commerce Control List of

21 dual-use items in the Export Administration Regulations.

22 ‘‘(g) DEFINITIONS.—In this section:

23 ‘‘(1) APPROPRIATE CONGRESSIONAL COMMIT24 TEES.—The term ‘appropriate congressional com25 mittees’ means—


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1 ‘‘(A) the Committee on Appropriations and

2 the Committee on International Relations of the

3 House of Representatives; and

4 ‘‘(B) the Committee on Appropriations and

5 the Committee on Foreign Relations of the Sen6 ate.

7 ‘‘(2) COUNTRIES OF CENTRAL ASIA.—The term

8 ‘countries of Central Asia’ means Kazakhstan,

9 Kyrgyzstan, Tajikistan, Turkmenistan, and

10 Uzbekistan.’’.

11 (b) REPORT.—

12 (1) IN GENERAL.—Not later than 90 days after

13 the date of the enactment of this Act, the Secretary

14 of State shall submit to the appropriate congres15 sional committees a report regarding United States

16 policy toward Uzbekistan.

17 (2) CONTENTS.—The report required by para18 graph (1) shall include a detailed description of each

19 of the following:

20 (A) The objectives of United States policy

21 toward Uzbekistan with respect to democratiza22 tion, human rights, economic reforms, regional

23 security, and the war on terrorism.


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1 (B) The strategy of the Government of the

2 United States for achieving the objectives de3 scribed under subparagraph (A).

4 (C) The steps taken by the Government of

5 the United States to advance the strategy de6 scribed under subparagraph (B) since the mas7 sacre in Andijan and the decision of the Gov8 ernment of Uzbekistan to expel United States

9 military forces from Uzbekistan.

10 (3) FORM.—The report required by paragraph

11 (1) shall be in unclassified form but may contain a

12 classified annex.

13 (c) EFFECTIVE DATE.—The requirements of—

14 (1) section 620L(a) of the Foreign Assistance

15 Act of 1961 (as added by subsection (a) of this sec16 tion) apply with respect to funds appropriated for

17 assistance for the Government of Uzbekistan for fis18 cal years 2007 and 2008; and

19 (2) subsections (b) through (f) of section 620L

20 of the Foreign Assistance Act of 1961 (as added by

21 subsection (a) of this section) apply during fiscal

22 years 2007 and 2008.

23 SEC. 7. DEFINITIONS.

24 In this Act:


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1 (1) APPROPRIATE CONGRESSIONAL COMMIT2 TEES.—The term ‘‘appropriate congressional com3 mittees’’ means—

4 (A) the Committee on Appropriations and

5 the Committee on International Relations of the

6 House of Representatives; and

7 (B) the Committee on Appropriations and

8 the Committee on Foreign Relations of the Sen9 ate.

10 (2) COUNTRIES OF CENTRAL ASIA.—The term

11 ‘‘countries of Central Asia’’ means Kazakhstan,

12 Kyrgyzstan, Tajikistan, Turkmenistan, and

13 Uzbekistan.


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Mr. SMITH OF NEW JERSEY. I would like to recognize myself for 

just a moment or two to explain the legislation that is before us. 

Since 9/11, the strategic nature of the troubled region of Central 

Asia for the United States has become apparent, as the five countries, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and 

Uzbekistan are strategically positioned at the crossroads of Europe 

and Asia. 

Sadly, in the 15 years since independence, respect for human 

rights and democratization is alarmingly poor, and it has worsened. 

As Chairman of this Subcommittee and as Co-Chairman of the 

Commission on Security and Cooperation in Europe, I appreciate 

the wide spectrum of conditions in Central Asia, which is why I introduced this bill, to help encourage these countries to vigorously 

pursue greater respect of fundamental freedoms. 

Our interest is not just on the governments of the five ‘‘stans,’’ 

but also on U.S. foreign policy. Considering the increase of U.S. involvement in the region, I have been troubled by the apparent lack 

of a coherent, uniform policy to encourage these governments to respect human rights and democratization. 

Consequently, one of the goals of the bill is to bring greater consistency to United States policy, creating a framework to guide our 

bilateral relations with Central Asia. The President, through his 

freedom agenda, has laid out bold principles to guide U.S. foreign 

policy. The act supports this agenda by providing $97 million in assistance for human rights and democracy training, and $10 million 

for increased Radio Free Europe, Radio Liberty, and Voice of America broadcasting. 

The bill establishes a certification mechanism for the distribution 

of assistance to each government. The Secretary of State will determine whether each has made ‘‘significant improvements’’ in the 

protection of human rights. This system will have a national security waiver, and is modeled on the current system in foreign ops 

approps measures for Kazakhstan, but expanded for all five countries. 

In addition, considering the forced return of Uzbek refugees from 

Kyrgyzstan and Kazakhstan, the act will require the Secretary of 

State to report on whether any government is forcibly returning 

Uzbeks or other refugees who have fled violence and political persecution. 

This is modeled on language regarding Kyrgyzstan in the foreign 

ops approps bill and, again, expanded to all five countries. Notably 

the legislation will create a sanctions section for Uzbekistan. First, 

the bill places into law the limitations already established, and 

those limitations prevent funding to the Uzbek Government unless 

the Secretary of State determines the government is making substantial and continuing progress toward respect for human rights, 

and that the government begin a credible international investigation of Andijan. We all remember the great—the horrible murder 

and massacre that occurred there. 

The act would also mirror European Union sanctions by establishing a visa ban and export ban on munitions. The sanctions sections also establishes an asset freeze for Uzbek officials, their family members, and their associates implicated in the Andijan massacre or involved in other gross violations of human rights. 

160

Protection of fundamental freedoms for the people of Central 

Asia will ultimately promote, I believe, and I think we all believe, 

long-term stability and security in the region. Acquiescence to the 

status quo challenges the sincerity of our stated objectives as declared in the National Security Strategy for 2006 that the U.S. 

must defend liberty and justice, because these principles are right 

and true for all people everywhere. 

The bill has been cosponsored by a large number of Members of 

our Subcommittee, and the Full Committee as well. And at this 

point, I would yield to Mr. Payne for any comments he might have. 

Mr. PAYNE. Thank you, Mr. Chairman. I certainly support the 

legislation, and I will be brief and urge its adoption. 

Mr. SMITH OF NEW JERSEY. Thank you, Mr. Payne. Would any 

of our Members like to be heard on the legislation, on the amendment in the nature of a substitute? 

The question now occurs on the amendment in the nature of a 

substitute. 

All of those in favor, say aye. 

Those opposed, say no. 

The ayes have it, and the amendment in the nature of a substitute is agreed to. The question occurs on the motion to report the 

bill, H.R. 5382, favorably, as amended. 

All of those in favor of reporting it favorably, say aye. 

Those opposed, say no. 

The ayes have it, and the motion is approved. Without objection, 

the staff is directed to make any technical and conforming amendments. 

Ms. LEE. Mr. Chairman, I have a question that I would like to 

ask and enter into a colloquy with you about a bill that was pulled 

today, the African Development Foundation Bill, H.R. 5652. We 

have been working in a bipartisan way to try to get all of the 

issues and difficulties—and there were not many—resolved in this. 

And we thought coming to this hearing today that everything had 

been resolved, only to find that the bill was pulled. And I would 

like to ask you what the objections are now. 

Mr. SMITH OF NEW JERSEY. I thank the gentlewoman. First of 

all, the bill, we have been looking at it. As you know, we held a 

hearing at which representatives of the Foundation testified. And 

they did have a text that they talked to us and others about. 

We are still just going through the text very carefully. I know 

that David Abramowitz had some problems with one of the measures, and you were prepared to offer an amendment. 

Ms. LEE. I have an amendment to that. 

Mr. SMITH OF NEW JERSEY. I know you do. We just want some 

additional time to study this text and make sure that all of the i’s 

are dotted and the t’s are crossed. So we will be looking at it further. I think it is matter of when and not if. 

Ms. LEE. Well, Mr. Chairman, I thought we had accomplished 

that by today. So whatever those i’s, whichever i’s need dotting, we 

would like to dot. I guess I would ask is it possible to waive that 

out of the Subcommittee once we do do that and report it to the 

Full Committee? 

161

Mr. SMITH OF NEW JERSEY. If we can come to a consensus, that 

would be fine. I want to spend some additional time. As Mr. Payne 

knows, as I know, every bill we do, we go through rewrites. 

Ms. LEE. I understand that. It never would have been scheduled 

for today. 

Mr. SMITH OF NEW JERSEY. We were trying to, in good faith, to 

move it as quickly as we can. But, again, it was only introduced 

yesterday. 

Ms. LEE. Well, okay, Mr. Chairman. Let’s see if we can do this, 

if possible, and get it done. We are certainly willing to do this 

amendment that we discussed and any other amendments that 

may make sense from your side. But we thought we had it resolved. 

Mr. SMITH OF NEW JERSEY. Okay. 

Mr. PAYNE. Mr. Chairman, I was also expecting it to come up at 

this time. I would just urge that the reading of the text and all of 

the concerns, that maybe they could perhaps be concluded maybe 

by week end, and if there is a possibility, even if we are going to 

have a Subcommittee meeting, that we have a special markup at 

that time. 

I certainly feel that as Chairman you need to feel comfortable 

with the legislation. But if that could be done real quickly, then we 

would appreciate moving it, since the African Development Foundation has done an outstanding job and there is a dire need for the 

approval and the request for additional funding. Thank you. 

Mr. SMITH OF NEW JERSEY. I think it should be very clear that 

we had representatives of the African Foundation testify at our 

hearing. I met with them after the hearing. They had a base text 

that they wanted us to consider. And I think Ms. Lee, you introduced—you went down to leg counsel, basically put it into that 

final form. 

We just want to look at it carefully. I mean, I was thinking of 

introducing it myself. So it is not like we are talking—we are talking about something we just need to work further on. I would also 

say it has not been reauthorized for 25 years, which is 25 years too 

long. So we will work with you. 

Ms. LEE. Thank you very much. 

Mr. SMITH OF NEW JERSEY. Is there any other business before 

the Subcommittee? If not the Subcommittee is adjourned. I thank 

my colleagues for their participation. 

[Whereupon, at 3 o’clock p.m., the Subcommittee was adjourned.]

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