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[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1344 Reported in Senate (RS)]

                                                       Calendar No. 715

105th CONGRESS

  2d Session

                                S. 1344

                          [Report No. 105-394]

_______________________________________________________________________

                                 A BILL

  To amend the Foreign Assistance Act of 1961 to target assistance to 
support the economic and political independence of the countries of the 
                    South Caucasus and Central Asia.

_______________________________________________________________________

              October 9 (legislative day, October 2), 1998

                       Reported with an amendment

                                                       Calendar No. 715
105th CONGRESS
  2d Session
                                S. 1344

                          [Report No. 105-394]

  To amend the Foreign Assistance Act of 1961 to target assistance to 
support the economic and political independence of the countries of the 
                    South Caucasus and Central Asia.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            October 30, 1997

 Mr. Brownback (for himself, Mr. Smith of Oregon, Mr. Lugar, Mr. Hagel, 
 Mr. McCain, Mr. Helms, Mr. Byrd, Mr. Thomas, Mr. Chafee, Mr. Kyl, and 
  Mr. Grams) introduced the following bill; which was read twice and 
             referred to the Committee on Foreign Relations

              October 9 (legislative day, October 2), 1998

                Reported by Mr. Helms, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL

 
  To amend the Foreign Assistance Act of 1961 to target assistance to 
support the economic and political independence of the countries of the 
                    South Caucasus and Central Asia.

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Silk Road Strategy Act of 
1997''.</DELETED>

<DELETED>SEC. 2. FINDINGS.</DELETED>

<DELETED>    Congress makes the following findings:</DELETED>
        <DELETED>    (1) The ancient Silk Road, once the economic 
        lifeline of Central Asia and the South Caucasus, traversed much 
        of the territory now within the countries of Armenia, 
        Azerbaijan, Georgia, Kazakstan, Kyrgyzstan, Tajikistan, 
        Turkmenistan, and Uzbekistan.</DELETED>
        <DELETED>    (2) Economic interdependence spurred mutual 
        cooperation among the peoples along the Silk Road and 
        restoration of the historic relationships and economic ties 
        between those peoples is an important element of ensuring their 
        sovereignty as well as the success of democratic and market 
        reforms.</DELETED>
        <DELETED>    (3) The development of strong political and 
        economic ties between countries of the South Caucasus and 
        Central Asia and the West will foster stability in the 
        region.</DELETED>
        <DELETED>    (4) The development of open market economies and 
        open democratic systems in the countries of the South Caucasus 
        and Central Asia will provide positive incentives for 
        international private investment, increased trade, and other 
        forms of commercial interactions with the rest of the 
        world.</DELETED>
        <DELETED>    (5) The Caspian Sea Basin, overlapping the 
        territory of the countries of the South Caucasus and Central 
        Asia, contains proven oil and gas reserves that may exceed 
        $4,000,000,000,000 in value.</DELETED>
        <DELETED>    (6) The region of the South Caucasus and Central 
        Asia will produce oil and gas in sufficient quantities to 
        reduce the dependence of the United States on energy from the 
        volatile Persian Gulf region.</DELETED>
        <DELETED>    (7) United States foreign policy and international 
        assistance should be narrowly targeted to support the economic 
        and political independence of the countries of the South 
        Caucasus and Central Asia.</DELETED>

<DELETED>SEC. 3. POLICY OF THE UNITED STATES.</DELETED>

<DELETED>    It shall be the policy of the United States in the 
countries of the South Caucasus and Central Asia--</DELETED>
        <DELETED>    (1) to promote and strengthen independence, 
        sovereignty, and democratic government;</DELETED>
        <DELETED>    (2) to assist actively in the resolution of 
        regional conflicts;</DELETED>
        <DELETED>    (3) to promote friendly relations and economic 
        cooperation;</DELETED>
        <DELETED>    (4) to help promote market-oriented principles and 
        practices;</DELETED>
        <DELETED>    (5) to assist in the development of the 
        infrastructure necessary for communications, transportation, 
        and energy and trade on an East-West axis in order to build 
        strong international relations and commerce between those 
        countries and the stable, democratic, and market-oriented 
        countries of the Euro-Atlantic Community; and</DELETED>
        <DELETED>    (6) to support United States business interests 
        and investments in the region.</DELETED>

<DELETED>SEC. 4. UNITED STATES EFFORTS TO RESOLVE CONFLICTS IN GEORGIA, 
              AZERBAIJAN, AND TAJIKISTAN.</DELETED>

<DELETED>    It is the sense of Congress that the President should use 
all diplomatic means practicable, including the engagement of senior 
United States Government officials, to press for an equitable, fair, 
and permanent resolution to the conflicts in Georgia and Azerbaijan and 
the civil war in Tajikistan.</DELETED>

<DELETED>SEC. 5. AMENDMENT OF THE FOREIGN ASSISTANCE ACT OF 
              1961.</DELETED>

<DELETED>    Part I of the Foreign Assistance Act of 1961 (22 U.S.C. 
2151 et seq.) is amended by adding at the end the following new 
chapter:</DELETED>

     <DELETED>``Chapter 12--Support for the Economic and Political 
    Independence of the Countries of the South Caucasus and Central 
                             Asia</DELETED>

<DELETED>``SEC. 499. UNITED STATES ASSISTANCE TO PROMOTE RECONCILIATION 
              AND RECOVERY FROM REGIONAL CONFLICTS.</DELETED>

<DELETED>    ``(a) Purpose of Assistance.--The purposes of assistance 
under this section are--</DELETED>
        <DELETED>    ``(1) to create the basis for reconciliation 
        between belligerents;</DELETED>
        <DELETED>    ``(2) to promote economic development in areas of 
        the countries of the South Caucasus and Central Asia impacted 
        by civil conflict and war; and</DELETED>
        <DELETED>    ``(3) to encourage broad regional cooperation 
        among countries of the South Caucasus and Central Asia that 
        have been destabilized by internal conflicts.</DELETED>
<DELETED>    ``(b) Authorization for Assistance.--</DELETED>
        <DELETED>    ``(1) In general.--To carry out the purposes of 
        subsection (a), the President is authorized to provide 
        humanitarian assistance and economic reconstruction assistance 
        under this Act, and assistance under the Migration and Refugee 
        Assistance Act of 1962 (22 U.S.C. 2601 et seq.), to the 
        countries of the South Caucasus and Central Asia to support the 
activities described in subsection (c).</DELETED>
        <DELETED>    ``(2) Definition of humanitarian assistance.--In 
        this subsection, the term `humanitarian assistance' means 
        assistance to meet urgent humanitarian needs, in particular 
        meeting needs for food, medicine, medical supplies and 
        equipment, and clothing.</DELETED>
<DELETED>    ``(c) Activities Supported.--Activities that may be 
supported by assistance under subsection (b) are limited to--</DELETED>
        <DELETED>    ``(1) providing for the essential needs of victims 
        of the conflicts;</DELETED>
        <DELETED>    ``(2) facilitating the return of refugees and 
        internally displaced persons to their homes; and</DELETED>
        <DELETED>    ``(3) assisting in the reconstruction of 
        residential and economic infrastructure destroyed by 
        war.</DELETED>
<DELETED>    ``(d) Policy.--It is the sense of Congress that the United 
States should, where appropriate, support the establishment of neutral, 
multinational peacekeeping forces to implement peace agreements reached 
between belligerents in the countries of the South Caucasus and Central 
Asia.</DELETED>

<DELETED>``SEC. 499A. ECONOMIC ASSISTANCE.</DELETED>

<DELETED>    ``(a) Purpose of Assistance.--The purpose of assistance 
under this section is to foster the conditions necessary for regional 
economic cooperation in the South Caucasus and Central Asia.</DELETED>
<DELETED>    ``(b) Authorization for Assistance.--To carry out the 
purpose of subsection (a), the President is authorized to provide 
technical assistance to the countries of the South Caucasus and Central 
Asia to support the activities described in subsection (c).</DELETED>
<DELETED>    ``(c) Activities Supported.--Activities that may be 
supported by assistance under subsection (b) are limited to the 
development of the structures and means necessary for the growth of 
private sector economies based upon market principles.</DELETED>
<DELETED>    ``(d) Policy.--It is the sense of Congress that the United 
States should--</DELETED>
        <DELETED>    ``(1) assist the countries of the South Caucasus 
        and Central Asia to develop laws and regulations that would 
        facilitate the ability of those countries to join the World 
        Trade Organization;</DELETED>
        <DELETED>    ``(2) provide permanent nondiscriminatory trade 
        treatment (MFN status) to the countries of the South Caucasus 
        and Central Asia; and</DELETED>
        <DELETED>    ``(3) consider the establishment of zero-to-zero 
        tariffs between the United States and the countries of the 
        South Caucasus and Central Asia.</DELETED>

<DELETED>``SEC. 499B. DEVELOPMENT OF INFRASTRUCTURE.</DELETED>

<DELETED>    ``(a) Purpose of Assistance.--The purposes of assistance 
under this section are--</DELETED>
        <DELETED>    ``(1) to develop the physical infrastructure 
        necessary for regional cooperation among the countries of the 
        South Caucasus and Central Asia; and</DELETED>
        <DELETED>    ``(2) to encourage closer economic relations 
        between those countries and the United States and other 
        developed nations.</DELETED>
<DELETED>    ``(b) Authorization for Assistance.--To carry out the 
purposes of subsection (a), the following types of assistance to the 
countries of the South Caucasus and Central Asia are authorized to 
support the activities described in subsection (c):</DELETED>
        <DELETED>    ``(1) Activities by the Export-Import Bank to 
        complete the review process for eligibility for financing under 
        the Export-Import Bank Act of 1945.</DELETED>
        <DELETED>    ``(2) The provision of insurance, reinsurance, 
        financing, or other assistance by the Overseas Private 
        Investment Corporation.</DELETED>
        <DELETED>    ``(3) Assistance under section 661 of this Act 
        (relating to the Trade and Development Agency).</DELETED>
<DELETED>    ``(c) Activities Supported.--Activities that may be 
supported by assistance under subsection (b) are limited to promoting 
actively the participation of United States companies and investors in 
the planning, financing, and construction of infrastructure for 
communications, transportation, and energy and trade including 
highways, railroads, port facilities, shipping, banking, insurance, 
telecommunications networks, and gas and oil pipelines.</DELETED>
<DELETED>    ``(d) Policy.--It is the sense of Congress that the United 
States representatives at the International Bank for Reconstruction and 
Development, the International Finance Corporation, and the European 
Bank for Reconstruction and Development should encourage lending to the 
countries of the South Caucasus and Central Asia to assist the 
development of the physical infrastructure necessary for regional 
economic cooperation.</DELETED>

<DELETED>``SEC. 499C. SECURITY ASSISTANCE.</DELETED>

<DELETED>    ``(a) Purpose of Assistance.--The purpose of assistance 
under this section is to assist countries of the South Caucasus and 
Central Asia to secure their borders and implement effective controls 
necessary to prevent the trafficking of illegal narcotics and the 
proliferation of technology and materials related to weapons of mass 
destruction (as defined in section 2332a(c)(2) of title 18, United 
States Code), and to contain and inhibit transnational organized 
criminal activities.</DELETED>
<DELETED>    ``(b) Authorization for Assistance.--To carry out the 
purpose of subsection (a), the President is authorized to provide the 
following types of assistance to the countries of the South Caucasus 
and Central Asia to support the activities described in subsection 
(c):</DELETED>
        <DELETED>    ``(1) Assistance under chapter 5 of part II of 
        this Act (relating to international military education and 
        training).</DELETED>
        <DELETED>    ``(2) Assistance under chapter 8 of this part of 
        this Act (relating to international narcotics control 
        assistance).</DELETED>
        <DELETED>    ``(3) The transfer of excess defense articles 
        under section 516 of this Act (22 U.S.C. 2321j).</DELETED>
<DELETED>    ``(c) Activities Supported.--Activities that may be 
supported by assistance under subsection (b) are limited to assisting 
those countries of the South Caucasus and Central Asia in developing 
capabilities to maintain national border guards, coast guard, and 
customs controls.</DELETED>
<DELETED>    ``(d) Policy.--It is the sense of Congress that the United 
States should encourage and assist the development of regional military 
cooperation among the countries of the South Caucasus and Central Asia 
through programs such as the Central Asian Battalion and the 
Partnership for Peace of the North Atlantic Treaty 
Organization.</DELETED>

<DELETED>``SEC. 499D. STRENGTHENING DEMOCRACY, TOLERANCE, AND THE 
              DEVELOPMENT OF CIVIL SOCIETY.</DELETED>

<DELETED>    ``(a) Purpose of Assistance.--The purpose of assistance 
under this section is to promote institutions of democratic government 
and to create the conditions for the growth of pluralistic societies, 
including religious tolerance.</DELETED>
<DELETED>    ``(b) Authorization for Assistance.--To carry out the 
purpose of subsection (a), the President is authorized to provide the 
following types of assistance to the countries of the South Caucasus 
and Central Asia.</DELETED>
        <DELETED>    ``(1) Technical assistance for democracy 
        building.</DELETED>
        <DELETED>    ``(2) Technical assistance for the development of 
        nongovernmental organizations.</DELETED>
        <DELETED>    ``(3) Technical assistance for development of 
        independent media.</DELETED>
        <DELETED>    ``(4) Technical assistance for the development of 
        the rule of law.</DELETED>
        <DELETED>    ``(5) International exchanges and advanced 
        professional training programs in skill areas central to the 
        development of civil society.</DELETED>
<DELETED>    ``(c) Activities Supported.--Activities that may be 
supported by assistance under subsection (b) are limited to activities 
that directly and specifically are designed to advance progress toward 
the development of democracy.</DELETED>
<DELETED>    ``(d) Policy.--It is the sense of Congress that the Voice 
of America and RFE/RL, Incorporated, should maintain high quality 
broadcasting for the maximum duration possible in the native languages 
of the countries of the South Caucasus and Central Asia.</DELETED>

<DELETED>``SEC. 499E. INELIGIBILITY FOR ASSISTANCE.</DELETED>

<DELETED>    ``(a) In General.--Except as provided in subsection (b), 
assistance may not be provided under this chapter for a country of the 
South Caucasus or Central Asia if the President determines and 
certifies to the appropriate congressional committees that the 
country--</DELETED>
        <DELETED>    ``(1) is engaged in a consistent pattern of gross 
        violations of internationally recognized human 
        rights;</DELETED>
        <DELETED>    ``(2) has, on or after the date of enactment of 
        this chapter, knowingly transferred to another country--
        </DELETED>
                <DELETED>    ``(A) missiles or missile technology 
                inconsistent with the guidelines and parameters of the 
                Missile Technology Control Regime (as defined in 
                section 11B(c) of the Export Administration Act of 1979 
                950 U.S.C. App. 2410b(c); or</DELETED>
                <DELETED>    ``(B) any material, equipment, or 
                technology that would contribute significantly to the 
                ability of such country to manufacture any weapon of 
                mass destruction (including nuclear, chemical, and 
                biological weapons) if the President determines that 
                the material, equipment, or technology was to be used 
                by such country in the manufacture of such 
                weapons;</DELETED>
        <DELETED>    ``(3) has supported acts of international 
        terrorism;</DELETED>
        <DELETED>    ``(4) is prohibited from receiving such assistance 
        by chapter 10 of the Arms Export Control Act or section 
        306(a)(1) and 307 of the Chemical and Biological Weapons 
        Control and Warfare Elimination Act of 1991 (22 U.S.C. 
        5604(a)(1), 5605); or</DELETED>
        <DELETED>    ``(5) has initiated an act of aggression against 
        another state in the region after the date of enactment of the 
        Silk Road Strategy Act of 1997.</DELETED>
<DELETED>    ``(b) Exception to Ineligibility.--Notwithstanding 
subsection (a), assistance may be provided under this chapter if the 
President determines and certifies in advance to the appropriate 
congressional committees that the provision of such assistance is 
important to the national interest of the United States.</DELETED>

<DELETED>``SEC. 499F. ADMINISTRATIVE AUTHORITIES.</DELETED>

<DELETED>    ``(a) Assistance Through Governments and Nongovernmental 
Organizations.--Assistance under this chapter may be provided to 
governments or through nongovernmental organizations.</DELETED>
<DELETED>    ``(b) Use of Economic Support Funds.--Except as otherwise 
provided, any funds that have been allocated under chapter 4 of part II 
for assistance for the independent states of the former Soviet Union 
may be used in accordance with the provisions of this 
chapter.</DELETED>
<DELETED>    ``(c) Terms and Conditions.--Assistance under this chapter 
shall be provided on such terms and conditions as the President may 
determine.</DELETED>
<DELETED>    ``(d) Superseding Existing Law.--The authority to provide 
assistance under this chapter supersedes any other provision of law, 
except for--</DELETED>
        <DELETED>    ``(1) this chapter;</DELETED>
        <DELETED>    ``(2) section 634A of this Act and comparable 
        notification requirements contained in sections of the annual 
        foreign operations, export financing, and related programs Act; 
        and</DELETED>
        <DELETED>    ``(3) section 1341 of title 31, United States Code 
        (commonly referred to as the ``Anti-Deficiency Act''), the 
        Congressional Budget and Impoundment Control Act of 1974, the 
        Balanced Budget and Emergency Deficit Control Act of 1985, and 
        the Budget Enforcement Act of 1990.</DELETED>

<DELETED>``SEC. 499G. DEFINITIONS.</DELETED>

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

<DELETED>SEC. 6. ANNUAL REPORT.</DELETED>

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

<DELETED>SEC. 7. DEFINITIONS.</DELETED>

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Silk Road Strategy Act of 1998''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The ancient Silk Road, once the economic lifeline of 
        Central Asia and the South Caucasus, traversed much of the 
        territory now within the countries of Armenia, Azerbaijan, 
        Georgia, Kazakstan, Kyrgyzstan, Tajikistan, Turkmenistan, and 
        Uzbekistan.
            (2) Economic interdependence spurred mutual cooperation 
        among the peoples along the Silk Road and restoration of the 
        historic relationships and economic ties between those peoples 
        is an important element of ensuring their sovereignty as well 
        as the success of democratic and market reforms.
            (3) The development of strong political and economic ties 
        among countries of the South Caucasus and Central Asia and the 
        West will foster stability in the region.
            (4) The development of open market economies and open 
        democratic systems in the countries of the South Caucasus and 
        Central Asia will provide positive incentives for international 
        private investment, increased trade, and other forms of 
        commercial interactions with the rest of the world.
            (5) The Caspian Sea Basin, overlapping the territory of the 
        countries of the South Caucasus and Central Asia, contains 
        proven oil and gas reserves that may exceed $4,000,000,000,000 
        in value.
            (6) The region of the South Caucasus and Central Asia will 
        produce oil and gas in sufficient quantities to reduce the 
        dependence of the United States on energy from the volatile 
        Persian Gulf region.
            (7) United States foreign policy and international 
        assistance should be narrowly targeted to support the economic 
        and political independence as well as democracy building, free 
        market policies, human rights, and regional economic 
        integration of the countries of the South Caucasus and Central 
        Asia.

SEC. 3. POLICY OF THE UNITED STATES.

    It shall be the policy of the United States in the countries of the 
South Caucasus and Central Asia--
            (1) to promote and strengthen independence, sovereignty, 
        democratic government, and respect for human rights;
            (2) to promote tolerance, pluralism, and understanding and 
        counter racism and anti-Semitism;
            (3) to assist actively in the resolution of regional 
        conflicts and to facilitate the removal of impediments to 
        cross-border commerce;
            (4) to promote friendly relations and economic cooperation;
            (5) to help promote market-oriented principles and 
        practices;
            (6) to assist in the development of the infrastructure 
        necessary for communications, transportation, education, 
        health, and energy and trade on an East-West axis in order to 
        build strong international relations and commerce between those 
        countries and the stable, democratic, and market-oriented 
        countries of the Euro-Atlantic Community; and
            (7) to support United States business interests and 
        investments in the region.

SEC. 4. UNITED STATES EFFORTS TO RESOLVE CONFLICTS IN THE SOUTH 
              CAUCASUS AND CENTRAL ASIA.

    It is the sense of Congress that the President should use all 
diplomatic means practicable, including the engagement of senior United 
States Government officials, to press for an equitable, fair, and 
permanent resolution to the conflicts in the South Caucasus and Central 
Asia.

SEC. 5. AMENDMENT OF THE FOREIGN ASSISTANCE ACT OF 1961.

    Part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et 
seq.) is amended by adding at the end the following new chapter:

 ``CHAPTER 12--SUPPORT FOR THE ECONOMIC AND POLITICAL INDEPENDENCE OF 
          THE COUNTRIES OF THE SOUTH CAUCASUS AND CENTRAL ASIA

``SEC. 499. UNITED STATES ASSISTANCE TO PROMOTE RECONCILIATION AND 
              RECOVERY FROM REGIONAL CONFLICTS.

    ``(a) Purpose of Assistance.--The purposes of assistance under this 
section include--
            ``(1) the creation of the basis for reconciliation between 
        belligerents;
            ``(2) the promotion of economic development in areas of the 
        countries of the South Caucasus and Central Asia impacted by 
        civil conflict and war; and
            ``(3) the encouragement of broad regional cooperation among 
        countries of the South Caucasus and Central Asia that have been 
        destabilized by internal conflicts.
    ``(b) Authorization for Assistance.--
            ``(1) In general.--To carry out the purposes of subsection 
        (a), the President is authorized to provide humanitarian 
        assistance and economic reconstruction assistance for the 
        countries of the South Caucasus and Central Asia to support the 
        activities described in subsection (c).
            ``(2) Definition of humanitarian assistance.--In this 
        subsection, the term `humanitarian assistance' means assistance 
        to meet humanitarian needs, including needs for food, medicine, 
        medical supplies and equipment, and clothing.
    ``(c) Activities Supported.--Activities that may be supported by 
assistance under subsection (b) include--
            ``(1) providing for the humanitarian needs of victims of 
        the conflicts;
            ``(2) facilitating the return of refugees and internally 
        displaced persons to their homes; and
            ``(3) assisting in the reconstruction of residential and 
        economic infrastructure destroyed by war.
    ``(d) Policy.--It is the sense of Congress that the United States 
should, where appropriate, support the establishment of neutral, 
multinational peacekeeping forces to implement peace agreements reached 
between belligerents in the countries of the South Caucasus and Central 
Asia.

``SEC. 499A. ECONOMIC ASSISTANCE.

    ``(a) Purpose of Assistance.--The purpose of assistance under this 
section is to foster economic growth and development, including the 
conditions necessary for regional economic cooperation, in the South 
Caucasus and Central Asia.
    ``(b) Authorization for Assistance.--To carry out the purpose of 
subsection (a), the President is authorized to provide assistance for 
the countries of the South Caucasus and Central Asia to support the 
activities described in subsection (c).
    ``(c) Activities Supported.--In addition to the activities 
described in section 498, activities supported by assistance under 
subsection (b) should support the development of the structures and 
means necessary for the growth of private sector economies based upon 
market principles.
    ``(d) Policy.--It is the sense of Congress that the United States 
should--
            ``(1) assist the countries of the South Caucasus and 
        Central Asia to develop policies, laws, and regulations that 
        would facilitate the ability of those countries to join the 
        World Trade Organization to enjoy all the benefits of 
        membership; and
            ``(2) consider the establishment of zero-to-zero tariffs 
        between the United States and the countries of the South 
        Caucasus and Central Asia.

``SEC. 499B. DEVELOPMENT OF INFRASTRUCTURE.

    ``(a) Purpose of Programs.--The purposes of programs under this 
section include--
            ``(1) to develop the physical infrastructure necessary for 
        regional cooperation among the countries of the South Caucasus 
        and Central Asia; and
            ``(2) to encourage closer economic relations and to 
        facilitate the removal of impediments to cross-border commerce 
        among those countries and the United States and other developed 
        nations.
    ``(b) Authorization for Programs.--To carry out the purposes of 
subsection (a), the following types of programs for the countries of 
the South Caucasus and Central Asia may be used to support the 
activities described in subsection (c):
            ``(1) Activities by the Export-Import Bank to complete the 
        review process for eligibility for financing under the Export-
        Import Bank Act of 1945.
            ``(2) The provision of insurance, reinsurance, financing, 
        or other assistance by the Overseas Private Investment 
        Corporation.
            ``(3) Assistance under section 661 of this Act (relating to 
        the Trade and Development Agency).
    ``(c) Activities Supported.--Activities that may be supported by 
programs under subsection (b) include promoting actively the 
participation of United States companies and investors in the planning, 
financing, and construction of infrastructure for communications, 
transportation, including air transportation, and energy and trade 
including highways, railroads, port facilities, shipping, banking, 
insurance, telecommunications networks, and gas and oil pipelines.
    ``(d) Policy.--It is the sense of Congress that the United States 
representatives at the International Bank for Reconstruction and 
Development, the International Finance Corporation, and the European 
Bank for Reconstruction and Development should encourage lending to the 
countries of the South Caucasus and Central Asia to assist the 
development of the physical infrastructure necessary for regional 
economic cooperation.

``SEC. 499C. BORDER CONTROL ASSISTANCE.

    ``(a) Purpose of Assistance.--The purpose of assistance under this 
section includes the assistance of the countries of the South Caucasus 
and Central Asia to secure their borders and implement effective 
controls necessary to prevent the trafficking of illegal narcotics and 
the proliferation of technology and materials related to weapons of 
mass destruction (as defined in section 2332a(c)(2) of title 18, United 
States Code), and to contain and inhibit transnational organized 
criminal activities.
    ``(b) Authorization for Assistance.--To carry out the purpose of 
subsection (a), the President is authorized to provide assistance to 
the countries of the South Caucasus and Central Asia to support the 
activities described in subsection (c).
    ``(c) Activities Supported.--Activities that may be supported by 
assistance under subsection (b) include assisting those countries of 
the South Caucasus and Central Asia in developing capabilities to 
maintain national border guards, coast guard, and customs controls.
    ``(d) Policy.--It is the sense of Congress that the United States 
should encourage and assist the development of regional military 
cooperation among the countries of the South Caucasus and Central Asia 
through programs such as the Central Asian Battalion and the 
Partnership for Peace of the North Atlantic Treaty Organization.

``SEC. 499D. STRENGTHENING DEMOCRACY, TOLERANCE, AND THE DEVELOPMENT OF 
              CIVIL SOCIETY.

    ``(a) Purpose of Assistance.--The purpose of assistance under this 
section is to promote institutions of democratic government and to 
create the conditions for the growth of pluralistic societies, 
including religious tolerance and respect for internationally 
recognized human rights.
    ``(b) Authorization for Assistance.--To carry out the purpose of 
subsection (a), the President is authorized to provide the following 
types of assistance to the countries of the South Caucasus and Central 
Asia:
            ``(1) Assistance for democracy building.
            ``(2) Assistance for the development of nongovernmental 
        organizations.
            ``(3) Assistance for development of independent media.
            ``(4) Assistance for the development of the rule of law.
            ``(5) International exchanges and advanced professional 
        training programs in skill areas central to the development of 
        civil society.
            ``(6) Assistance to promote increased adherence to civil 
        and political rights under section 116(e) of this Act.
    ``(c) Activities Supported.--Activities that may be supported by 
assistance under subsection (b) include activities that are designed to 
advance progress toward the development of democracy.
    ``(d) Policy.--It is the sense of Congress that the Voice of 
America and RFE/RL, Incorporated, should maintain high quality 
broadcasting for the maximum duration possible in the native languages 
of the countries of the South Caucasus and Central Asia.

``SEC. 499E. INELIGIBILITY FOR ASSISTANCE.

    ``(a) In General.--Except as provided in subsection (b), assistance 
may not be provided under this chapter for the government of a country 
of the South Caucasus or Central Asia if the President determines and 
certifies to the appropriate congressional committees that the 
government of such country--
            ``(1) is engaged in a consistent pattern of gross 
        violations of internationally recognized human rights;
            ``(2) has, on or after the date of enactment of this 
        chapter, knowingly transferred to another country--
                    ``(A) missiles or missile technology inconsistent 
                with the guidelines and parameters of the Missile 
                Technology Control Regime (as defined in section 11B(c) 
                of the Export Administration Act of 1979 (50 U.S.C. 
                App. 2410b(c)); or
                    ``(B) any material, equipment, or technology that 
                would contribute significantly to the ability of such 
                country to manufacture any weapon of mass destruction 
                (including nuclear, chemical, and biological weapons) 
                if the President determines that the material, 
                equipment, or technology was to be used by such country 
                in the manufacture of such weapons;
            ``(3) has repeatedly provided support for acts of 
        international terrorism; or
            ``(4) is prohibited from receiving such assistance by 
        chapter 10 of the Arms Export Control Act or section 306(a)(1) 
        and 307 of the Chemical and Biological Weapons Control and 
        Warfare Elimination Act of 1991 (22 U.S.C. 5604(a)(1), 5605).
    ``(b) Exceptions to Ineligibility.--
            ``(1) Exceptions.--Assistance prohibited by subsection (a) 
        or any similar provision of law, other than assistance 
        prohibited by the provisions referred to in paragraphs (2) and 
        (4) of subsection (a), may be furnished under any of the 
        following circumstances:
                    ``(A) The President determines that furnishing such 
                assistance is important to the national interest of the 
                United States.
                    ``(B) The President determines that furnishing such 
                assistance will foster respect for internationally 
                recognized human rights and the rule of law or the 
                development of institutions of democratic governance.
                    ``(C) The assistance is furnished for the 
                alleviation of suffering resulting from a natural or 
                man-made disaster.
                    ``(D) The assistance is provided under the 
                secondary school exchange program administered by the 
                United States Information Agency.
        ``(2) Report to congress.--The President shall immediately 
        report to Congress any determination under paragraph (1) (A) or 
        (B) or any decision to provide assistance under paragraph 
        (1)(C).

``SEC. 499F. ADMINISTRATIVE AUTHORITIES.

    ``(a) Assistance Through Governments and Nongovernmental 
Organizations.--Assistance under this chapter may be provided to 
governments or through nongovernmental organizations.
    ``(b) Use of Economic Support Funds.--Except as otherwise provided, 
any funds that have been allocated under chapter 4 of part II for 
assistance for the independent states of the former Soviet Union may be 
used in accordance with the provisions of this chapter.
    ``(c) Terms and Conditions.--Assistance under this chapter shall be 
provided on such terms and conditions as the President may determine.
    ``(d) Relationship to Other Laws.--
            ``(1) Superseding existing law.--The authorities contained 
        in this chapter and in chapter 11 to provide assistance for the 
        countries of the South Caucasus and Central Asia shall 
        supersede the FREEDOM Support Act (22 U.S.C. 5801 et seq.).
            ``(2) Available authorities.--The authority in this chapter 
        to provide assistance for the countries of the South Caucasus 
        and Central Asia is in addition to the authority to provide 
        such assistance under the FREEDOM Support Act (22 U.S.C. 5801 
        et seq.) or any other Act, and the authorities applicable to 
        the provision of assistance under chapter 11 may be used to 
        provide assistance under this chapter.

``SEC. 499G. DEFINITIONS.

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

SEC. 6. ANNUAL REPORT.

    Section 104 of the FREEDOM Support Act (22 U.S.C. 5814) is 
amended--
            (1) by striking ``and'' at the end of paragraph (3);
            (2) by striking the period at the end of paragraph (4) and 
        inserting ``; and''; and
            (3) by adding the following new paragraph:
            ``(5) with respect to the countries of the South Caucasus 
        and Central Asia--
                    ``(A) identifying the progress of United States 
                foreign policy to accomplish the policy identified in 
                section 3 of the Silk Road Strategy Act of 1998;
                    ``(B) evaluating the degree to which the assistance 
                authorized by chapter 12 of part I of the Foreign 
                Assistance Act of 1961 has been able to accomplish the 
                purposes identified in those sections; and
                    ``(C) recommending any additional initiatives that 
                should be undertaken by the United States to implement 
                the policy and purposes contained in the Silk Road 
                Strategy Act of 1998.''.

SEC. 7. CONFORMING AMENDMENTS.

    Section 102(a) of the FREEDOM Support Act (Public Law 102-511) is 
amended in paragraphs (2) and (4) by striking each place it appears 
``this Act)'' and inserting ``this Act and the Silk Road Strategy Act 
of 1998)''.

SEC. 8. DEFINITIONS.

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