Calendar No. 715

105TH CONGRESS

2D SESSION S. 1344

[Report No. 105–394]

A BILL

To amend the Foreign Assistance Act of 1961 to

Caucasus and Central Asia.litical independence of the countries of the Southtarget assistance to support the economic and poOCTOBER 9 (legislative day, OCTOBER 2), 1998

Reported with an amendment
II

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.

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

2 This Act may be cited as the ‘‘Silk Road Strategy

3 Act of 1997’’.

4 SEC. 2. FINDINGS.

5 Congress makes the following findings:

6 (1) The ancient Silk Road, once the economic

7 lifeline of Central Asia and the South Caucasus, tra8 versed much of the territory now within the coun9 tries of Armenia, Azerbaijan, Georgia, Kazakstan,

10 Kyrgyzstan, Tajikistan, Turkmenistan, and

11 Uzbekistan.

12 (2) Economic interdependence spurred mutual

13 cooperation among the peoples along the Silk Road

14 and restoration of the historic relationships and eco15 nomic ties between those peoples is an important ele16 ment of ensuring their sovereignty as well as the

17 success of democratic and market reforms.

18 (3) The development of strong political and eco19 nomic ties between countries of the South Caucasus

20 and Central Asia and the West will foster stability

21 in the region.

22 (4) The development of open market economies

23 and open democratic systems in the countries of the

24 South Caucasus and Central Asia will provide posi25 tive incentives for international private investment,
3

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1 increased trade, and other forms of commercial

2 interactions with the rest of the world.

3 (5) The Caspian Sea Basin, overlapping the

4 territory of the countries of the South Caucasus and

5 Central Asia, contains proven oil and gas reserves

6 that may exceed $4,000,000,000,000 in value.

7 (6) The region of the South Caucasus and Cen8 tral Asia will produce oil and gas in sufficient quan9 tities to reduce the dependence of the United States

10 on energy from the volatile Persian Gulf region.

11 (7) United States foreign policy and inter12 national assistance should be narrowly targeted to

13 support the economic and political independence of

14 the countries of the South Caucasus and Central

15 Asia.

16 SEC. 3. POLICY OF THE UNITED STATES.

17 It shall be the policy of the United States in the coun18 tries of the South Caucasus and Central Asia—

19 (1) to promote and strengthen independence,

20 sovereignty, and democratic government;

21 (2) to assist actively in the resolution of re22 gional conflicts;

23 (3) to promote friendly relations and economic

24 cooperation;
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1 (4) to help promote market-oriented principles

2 and practices;

3 (5) to assist in the development of the infra4 structure necessary for communications, transpor5 tation, and energy and trade on an East-West axis

6 in order to build strong international relations and

7 commerce between those countries and the stable,

8 democratic, and market-oriented countries of the

9 Euro-Atlantic Community; and

10 (6) to support United States business interests

11 and investments in the region.

12 SEC. 4. UNITED STATES EFFORTS TO RESOLVE CONFLICTS

13 IN GEORGIA, AZERBAIJAN, AND TAJIKISTAN.

14 It is the sense of Congress that the President should

15 use all diplomatic means practicable, including the engage16 ment of senior United States Government officials, to

17 press for an equitable, fair, and permanent resolution to

18 the conflicts in Georgia and Azerbaijan and the civil war

19 in Tajikistan.

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

21 1961.

22 Part I of the Foreign Assistance Act of 1961 (22

23 U.S.C. 2151 et seq.) is amended by adding at the end

24 the following new chapter:
5

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1 ‘‘Chapter 12—Support for the Economic and

2 Political Independence of the Countries

3 of the South Caucasus and Central Asia

4 ‘‘SEC. 499. UNITED STATES ASSISTANCE TO PROMOTE REC5 ONCILIATION AND RECOVERY FROM RE6 GIONAL CONFLICTS.

7 ‘‘(a) PURPOSE OF ASSISTANCE.—The purposes of as8 sistance under this section are—

9 ‘‘(1) to create the basis for reconciliation be10 tween belligerents;

11 ‘‘(2) to promote economic development in areas

12 of the countries of the South Caucasus and Central

13 Asia impacted by civil conflict and war; and

14 ‘‘(3) to encourage broad regional cooperation

15 among countries of the South Caucasus and Central

16 Asia that have been destabilized by internal con17 flicts.

18 ‘‘(b) AUTHORIZATION FOR ASSISTANCE.—

19 ‘‘(1) IN GENERAL.—To carry out the purposes

20 of subsection (a), the President is authorized to pro21 vide humanitarian assistance and economic recon22 struction assistance under this Act, and assistance

23 under the Migration and Refugee Assistance Act of

24 1962 (22 U.S.C. 2601 et seq.), to the countries of
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1 the South Caucasus and Central Asia to support the

2 activities described in subsection (c).

3 ‘‘(2) DEFINITION OF HUMANITARIAN ASSIST4 ANCE.—In this subsection, the term ‘humanitarian

5 assistance’ means assistance to meet urgent humani6 tarian needs, in particular meeting needs for food,

7 medicine, medical supplies and equipment, and

8 clothing.

9 ‘‘(c) ACTIVITIES SUPPORTED.—Activities that may

10 be supported by assistance under subsection (b) are lim11 ited to—

12 ‘‘(1) providing for the essential needs of victims

13 of the conflicts;

14 ‘‘(2) facilitating the return of refugees and in15 ternally displaced persons to their homes; and

16 ‘‘(3) assisting in the reconstruction of residen17 tial and economic infrastructure destroyed by war.

18 ‘‘(d) POLICY.—It is the sense of Congress that the

19 United States should, where appropriate, support the es20 tablishment of neutral, multinational peacekeeping forces

21 to implement peace agreements reached between belliger22 ents in the countries of the South Caucasus and Central

23 Asia.
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1 ‘‘SEC. 499A. ECONOMIC ASSISTANCE.

2 ‘‘(a) PURPOSE OF ASSISTANCE.—The purpose of as3 sistance under this section is to foster the conditions nec4 essary for regional economic cooperation in the South

5 Caucasus and Central Asia.

6 ‘‘(b) AUTHORIZATION FOR ASSISTANCE.—To carry

7 out the purpose of subsection (a), the President is author8 ized to provide technical assistance to the countries of the

9 South Caucasus and Central Asia to support the activities

10 described in subsection (c).

11 ‘‘(c) ACTIVITIES SUPPORTED.—Activities that may

12 be supported by assistance under subsection (b) are lim13 ited to the development of the structures and means nec14 essary for the growth of private sector economies based

15 upon market principles.

16 ‘‘(d) POLICY.—It is the sense of Congress that the

17 United States should—

18 ‘‘(1) assist the countries of the South Caucasus

19 and Central Asia to develop laws and regulations

20 that would facilitate the ability of those countries to

21 join the World Trade Organization;

22 ‘‘(2) provide permanent nondiscriminatory trade

23 treatment (MFN status) to the countries of the

24 South Caucasus and Central Asia; and
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1 ‘‘(3) consider the establishment of zero-to-zero

2 tariffs between the United States and the countries

3 of the South Caucasus and Central Asia.

4 ‘‘SEC. 499B. DEVELOPMENT OF INFRASTRUCTURE.

5 ‘‘(a) PURPOSE OF ASSISTANCE.—The purposes of as6 sistance under this section are—

7 ‘‘(1) to develop the physical infrastructure nec8 essary for regional cooperation among the countries

9 of the South Caucasus and Central Asia; and

10 ‘‘(2) to encourage closer economic relations be11 tween those countries and the United States and

12 other developed nations.

13 ‘‘(b) AUTHORIZATION FOR ASSISTANCE.—To carry

14 out the purposes of subsection (a), the following types of

15 assistance to the countries of the South Caucasus and

16 Central Asia are authorized to support the activities de17 scribed in subsection (c):

18 ‘‘(1) Activities by the Export-Import Bank to

19 complete the review process for eligibility for financ20 ing under the Export-Import Bank Act of 1945.

21 ‘‘(2) The provision of insurance, reinsurance, fi22 nancing, or other assistance by the Overseas Private

23 Investment Corporation.

24 ‘‘(3) Assistance under section 661 of this Act

25 (relating to the Trade and Development Agency).
9

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1 ‘‘(c) ACTIVITIES SUPPORTED.—Activities that may

2 be supported by assistance under subsection (b) are lim3 ited to promoting actively the participation of United

4 States companies and investors in the planning, financing,

5 and construction of infrastructure for communications,

6 transportation, and energy and trade including highways,

7 railroads, port facilities, shipping, banking, insurance,

8 telecommunications networks, and gas and oil pipelines.

9 ‘‘(d) POLICY.—It is the sense of Congress that the

10 United States representatives at the International Bank

11 for Reconstruction and Development, the International Fi12 nance Corporation, and the European Bank for Recon13 struction and Development should encourage lending to

14 the countries of the South Caucasus and Central Asia to

15 assist the development of the physical infrastructure nec16 essary for regional economic cooperation.

17 ‘‘SEC. 499C. SECURITY ASSISTANCE.

18 ‘‘(a) PURPOSE OF ASSISTANCE.—The purpose of as19 sistance under this section is to assist countries of the

20 South Caucasus and Central Asia to secure their borders

21 and implement effective controls necessary to prevent the

22 trafficking of illegal narcotics and the proliferation of

23 technology and materials related to weapons of mass de24 struction (as defined in section 2332a(c)(2) of title 18,
10

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1 United States Code), and to contain and inhibit

2 transnational organized criminal activities.

3 ‘‘(b) AUTHORIZATION FOR ASSISTANCE.—To carry

4 out the purpose of subsection (a), the President is author5 ized to provide the following types of assistance to the

6 countries of the South Caucasus and Central Asia to sup7 port the activities described in subsection (c):

8 ‘‘(1) Assistance under chapter 5 of part II of

9 this Act (relating to international military education

10 and training).

11 ‘‘(2) Assistance under chapter 8 of this part of

12 this Act (relating to international narcotics control

13 assistance).

14 ‘‘(3) The transfer of excess defense articles

15 under section 516 of this Act (22 U.S.C. 2321j).

16 ‘‘(c) ACTIVITIES SUPPORTED.—Activities that may

17 be supported by assistance under subsection (b) are lim18 ited to assisting those countries of the South Caucasus

19 and Central Asia in developing capabilities to maintain na20 tional border guards, coast guard, and customs controls.

21 ‘‘(d) POLICY.—It is the sense of Congress that the

22 United States should encourage and assist the develop23 ment of regional military cooperation among the countries

24 of the South Caucasus and Central Asia through pro25 grams such as the Central Asian Battalion and the Part-
11

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1 nership for Peace of the North Atlantic Treaty Organiza2 tion.

3 ‘‘SEC. 499D. STRENGTHENING DEMOCRACY, TOLERANCE,

4 AND THE DEVELOPMENT OF CIVIL SOCIETY.

5 ‘‘(a) PURPOSE OF ASSISTANCE.—The purpose of as6 sistance under this section is to promote institutions of

7 democratic government and to create the conditions for

8 the growth of pluralistic societies, including religious toler9 ance.

10 ‘‘(b) AUTHORIZATION FOR ASSISTANCE.—To carry

11 out the purpose of subsection (a), the President is author12 ized to provide the following types of assistance to the

13 countries of the South Caucasus and Central Asia.

14 ‘‘(1) Technical assistance for democracy build15 ing.

16 ‘‘(2) Technical assistance for the development

17 of nongovernmental organizations.

18 ‘‘(3) Technical assistance for development of

19 independent media.

20 ‘‘(4) Technical assistance for the development

21 of the rule of law.

22 ‘‘(5) International exchanges and advanced pro23 fessional training programs in skill areas central to

24 the development of civil society.
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1 ‘‘(c) ACTIVITIES SUPPORTED.—Activities that may

2 be supported by assistance under subsection (b) are lim3 ited to activities that directly and specifically are designed

4 to advance progress toward the development of democracy.

5 ‘‘(d) POLICY.—It is the sense of Congress that the

6 Voice of America and RFE/RL, Incorporated, should

7 maintain high quality broadcasting for the maximum du8 ration possible in the native languages of the countries of

9 the South Caucasus and Central Asia.

10 ‘‘SEC. 499E. INELIGIBILITY FOR ASSISTANCE.

11 ‘‘(a) IN GENERAL.—Except as provided in subsection

12 (b), assistance may not be provided under this chapter for

13 a country of the South Caucasus or Central Asia if the

14 President determines and certifies to the appropriate con15 gressional committees that the country—

16 ‘‘(1) is engaged in a consistent pattern of gross

17 violations of internationally recognized human

18 rights;

19 ‘‘(2) has, on or after the date of enactment of

20 this chapter, knowingly transferred to another coun21 try—

22 ‘‘(A) missiles or missile technology incon23 sistent with the guidelines and parameters of

24 the Missile Technology Control Regime (as de25 fined in section 11B(c) of the Export Adminis-
13

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1 tration Act of 1979 950 U.S.C. App. 2410b(c);

2 or

3 ‘‘(B) any material, equipment, or tech4 nology that would contribute significantly to the

5 ability of such country to manufacture any

6 weapon of mass destruction (including nuclear,

7 chemical, and biological weapons) if the Presi8 dent determines that the material, equipment,

9 or technology was to be used by such country

10 in the manufacture of such weapons;

11 ‘‘(3) has supported acts of international terror12 ism;

13 ‘‘(4) is prohibited from receiving such assist14 ance by chapter 10 of the Arms Export Control Act

15 or section 306(a)(1) and 307 of the Chemical and

16 Biological Weapons Control and Warfare Elimi17 nation Act of 1991 (22 U.S.C. 5604(a)(1), 5605); or

18 ‘‘(5) has initiated an act of aggression against

19 another state in the region after the date of enact20 ment of the Silk Road Strategy Act of 1997.

21 ‘‘(b) EXCEPTION TO INELIGIBILITY.—Notwithstand22 ing subsection (a), assistance may be provided under this

23 chapter if the President determines and certifies in ad24 vance to the appropriate congressional committees that
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1 the provision of such assistance is important to the na2 tional interest of the United States.

3 ‘‘SEC. 499F. ADMINISTRATIVE AUTHORITIES.

4 ‘‘(a) ASSISTANCE THROUGH GOVERNMENTS AND

5 NONGOVERNMENTAL ORGANIZATIONS.—Assistance under

6 this chapter may be provided to governments or through

7 nongovernmental organizations.

8 ‘‘(b) USE OF ECONOMIC SUPPORT FUNDS.—Except

9 as otherwise provided, any funds that have been allocated

10 under chapter 4 of part II for assistance for the independ11 ent states of the former Soviet Union may be used in ac12 cordance with the provisions of this chapter.

13 ‘‘(c) TERMS AND CONDITIONS.—Assistance under

14 this chapter shall be provided on such terms and condi15 tions as the President may determine.

16 ‘‘(d) SUPERSEDING EXISTING LAW.—The authority

17 to provide assistance under this chapter supersedes any

18 other provision of law, except for—

19 ‘‘(1) this chapter;

20 ‘‘(2) section 634A of this Act and comparable

21 notification requirements contained in sections of the

22 annual foreign operations, export financing, and re23 lated programs Act; and

24 ‘‘(3) section 1341 of title 31, United States

25 Code (commonly referred to as the ‘‘Anti-Deficiency
15

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1 Act’’), the Congressional Budget and Impoundment

2 Control Act of 1974, the Balanced Budget and

3 Emergency Deficit Control Act of 1985, and the

4 Budget Enforcement Act of 1990.

5 ‘‘SEC. 499G. DEFINITIONS.

6 ‘‘In this chapter:

7 ‘‘(1) APPROPRIATE CONGRESSIONAL COMMIT8 TEES.—The term ‘appropriate congressional com9 mittees’ means the Committee on Foreign Relations

10 of the Senate and the Committee on International

11 Relations of the House of Representatives.

12 ‘‘(2) COUNTRIES OF THE SOUTH CAUCASUS

13 AND CENTRAL ASIA.—The term ‘countries of the

14 South Caucasus and Central Asia’ means Armenia,

15 Azerbaijan, Georgia, Kazakstan, Kyrgystan,

16 Tajikistan, Turkmenistan, and Uzbekistan.’’.

17 SEC. 6. ANNUAL REPORT.

18 Beginning one year after the date of enactment of

19 this Act, and annually thereafter, the President shall sub20 mit a report to the appropriate congressional commit21 tees—

22 (1) identifying the progress of United States

23 foreign policy to accomplish the policy identified in

24 section 3;
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1 (2) evaluating the degree to which the assist2 ance authorized by chapter 12 of part I of the For3 eign Assistance Act of 1961, as added by section 5

4 of this Act, was able to accomplish the purposes

5 identified in those sections; and

6 (3) recommending any additional initiatives

7 that should be undertaken by the United States to

8 implement the policy and purposes contained in this

9 Act.

10 SEC. 7. DEFINITIONS.

11 In this Act:

12 (1) APPROPRIATE CONGRESSIONAL COMMIT13 TEES.—The term ‘‘appropriate congressional com14 mittees’’ means the Committee on Foreign Relations

15 of the Senate and the Committee on International

16 Relations of the House of Representatives.

17 (2) COUNTRIES OF THE SOUTH CAUCASUS AND

18 CENTRAL ASIA.—The term ‘‘countries of the South

19 Caucasus and Central Asia’’ means Armenia, Azer20 baijan, Georgia, Kazakstan, Kyrgystan, Tajikistan,

21 Turkmenistan, and Uzbekistan.

22 SECTION 1. SHORT TITLE.

23 This Act may be cited as the ‘‘Silk Road Strategy Act

24 of 1998’’.
17

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1 SEC. 2. FINDINGS.

2 Congress makes the following findings:

3 (1) The ancient Silk Road, once the economic

4 lifeline of Central Asia and the South Caucasus, tra5 versed much of the territory now within the countries

6 of Armenia, Azerbaijan, Georgia, Kazakstan,

7 Kyrgyzstan, Tajikistan, Turkmenistan, and

8 Uzbekistan.

9 (2) Economic interdependence spurred mutual

10 cooperation among the peoples along the Silk Road

11 and restoration of the historic relationships and eco12 nomic ties between those peoples is an important ele13 ment of ensuring their sovereignty as well as the suc14 cess of democratic and market reforms.

15 (3) The development of strong political and eco16 nomic ties among countries of the South Caucasus

17 and Central Asia and the West will foster stability in

18 the region.

19 (4) The development of open market economies

20 and open democratic systems in the countries of the

21 South Caucasus and Central Asia will provide posi22 tive incentives for international private investment,

23 increased trade, and other forms of commercial inter24 actions with the rest of the world.

25 (5) The Caspian Sea Basin, overlapping the ter26 ritory of the countries of the South Caucasus and
18

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1 Central Asia, contains proven oil and gas reserves

2 that may exceed $4,000,000,000,000 in value.

3 (6) The region of the South Caucasus and Cen4 tral Asia will produce oil and gas in sufficient quan5 tities to reduce the dependence of the United States on

6 energy from the volatile Persian Gulf region.

7 (7) United States foreign policy and inter8 national assistance should be narrowly targeted to

9 support the economic and political independence as

10 well as democracy building, free market policies,

11 human rights, and regional economic integration of

12 the countries of the South Caucasus and Central Asia.

13 SEC. 3. POLICY OF THE UNITED STATES.

14 It shall be the policy of the United States in the coun15 tries of the South Caucasus and Central Asia—

16 (1) to promote and strengthen independence, sov17 ereignty, democratic government, and respect for

18 human rights;

19 (2) to promote tolerance, pluralism, and under20 standing and counter racism and anti-Semitism;

21 (3) to assist actively in the resolution of regional

22 conflicts and to facilitate the removal of impediments

23 to cross-border commerce;

24 (4) to promote friendly relations and economic

25 cooperation;
19

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1 (5) to help promote market-oriented principles

2 and practices;

3 (6) to assist in the development of the infrastruc4 ture necessary for communications, transportation,

5 education, health, and energy and trade on an East6 West axis in order to build strong international rela7 tions and commerce between those countries and the

8 stable, democratic, and market-oriented countries of

9 the Euro-Atlantic Community; and

10 (7) to support United States business interests

11 and investments in the region.

12 SEC. 4. UNITED STATES EFFORTS TO RESOLVE CONFLICTS

13 IN THE SOUTH CAUCASUS AND CENTRAL

14 ASIA.

15 It is the sense of Congress that the President should

16 use all diplomatic means practicable, including the engage17 ment of senior United States Government officials, to press

18 for an equitable, fair, and permanent resolution to the con19 flicts in the South Caucasus and Central Asia.

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

21 1961.

22 Part I of the Foreign Assistance Act of 1961 (22 U.S.C.

23 2151 et seq.) is amended by adding at the end the following

24 new chapter:
20

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1 ‘‘CHAPTER 12—SUPPORT FOR THE ECO2 NOMIC AND POLITICAL INDEPEND3 ENCE OF THE COUNTRIES OF THE

4 SOUTH CAUCASUS AND CENTRAL ASIA

5 ‘‘SEC. 499. UNITED STATES ASSISTANCE TO PROMOTE REC6 ONCILIATION AND RECOVERY FROM RE7 GIONAL CONFLICTS.

8 ‘‘(a) PURPOSE OF ASSISTANCE.—The purposes of as9 sistance under this section include—

10 ‘‘(1) the creation of the basis for reconciliation

11 between belligerents;

12 ‘‘(2) the promotion of economic development in

13 areas of the countries of the South Caucasus and Cen14 tral Asia impacted by civil conflict and war; and

15 ‘‘(3) the encouragement of broad regional co16 operation among countries of the South Caucasus and

17 Central Asia that have been destabilized by internal

18 conflicts.

19 ‘‘(b) AUTHORIZATION FOR ASSISTANCE.—

20 ‘‘(1) IN GENERAL.—To carry out the purposes of

21 subsection (a), the President is authorized to provide

22 humanitarian assistance and economic reconstruction

23 assistance for the countries of the South Caucasus and

24 Central Asia to support the activities described in

25 subsection (c).
21

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1 ‘‘(2) DEFINITION OF HUMANITARIAN ASSIST2 ANCE.—In this subsection, the term ‘humanitarian

3 assistance’ means assistance to meet humanitarian

4 needs, including needs for food, medicine, medical

5 supplies and equipment, and clothing.

6 ‘‘(c) ACTIVITIES SUPPORTED.—Activities that may be

7 supported by assistance under subsection (b) include—

8 ‘‘(1) providing for the humanitarian needs of

9 victims of the conflicts;

10 ‘‘(2) facilitating the return of refugees and inter11 nally displaced persons to their homes; and

12 ‘‘(3) assisting in the reconstruction of residential

13 and economic infrastructure destroyed by war.

14 ‘‘(d) POLICY.—It is the sense of Congress that the

15 United States should, where appropriate, support the estab16 lishment of neutral, multinational peacekeeping forces to

17 implement peace agreements reached between belligerents in

18 the countries of the South Caucasus and Central Asia.

19 ‘‘SEC. 499A. ECONOMIC ASSISTANCE.

20 ‘‘(a) PURPOSE OF ASSISTANCE.—The purpose of as21 sistance under this section is to foster economic growth and

22 development, including the conditions necessary for regional

23 economic cooperation, in the South Caucasus and Central

24 Asia.
22

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1 ‘‘(b) AUTHORIZATION FOR ASSISTANCE.—To carry out

2 the purpose of subsection (a), the President is authorized

3 to provide assistance for the countries of the South Caucasus

4 and Central Asia to support the activities described in sub5 section (c).

6 ‘‘(c) ACTIVITIES SUPPORTED.—In addition to the ac7 tivities described in section 498, activities supported by as8 sistance under subsection (b) should support the develop9 ment of the structures and means necessary for the growth

10 of private sector economies based upon market principles.

11 ‘‘(d) POLICY.—It is the sense of Congress that the

12 United States should—

13 ‘‘(1) assist the countries of the South Caucasus

14 and Central Asia to develop policies, laws, and regu15 lations that would facilitate the ability of those coun16 tries to join the World Trade Organization to enjoy

17 all the benefits of membership; and

18 ‘‘(2) consider the establishment of zero-to-zero

19 tariffs between the United States and the countries of

20 the South Caucasus and Central Asia.

21 ‘‘SEC. 499B. DEVELOPMENT OF INFRASTRUCTURE.

22 ‘‘(a) PURPOSE OF PROGRAMS.—The purposes of pro23 grams under this section include—
23

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1 ‘‘(1) to develop the physical infrastructure nec2 essary for regional cooperation among the countries of

3 the South Caucasus and Central Asia; and

4 ‘‘(2) to encourage closer economic relations and

5 to facilitate the removal of impediments to cross-bor6 der commerce among those countries and the United

7 States and other developed nations.

8 ‘‘(b) AUTHORIZATION FOR PROGRAMS.—To carry out

9 the purposes of subsection (a), the following types of pro10 grams for the countries of the South Caucasus and Central

11 Asia may be used to support the activities described in sub12 section (c):

13 ‘‘(1) Activities by the Export-Import Bank to

14 complete the review process for eligibility for financ15 ing under the Export-Import Bank Act of 1945.

16 ‘‘(2) The provision of insurance, reinsurance, fi17 nancing, or other assistance by the Overseas Private

18 Investment Corporation.

19 ‘‘(3) Assistance under section 661 of this Act (re20 lating to the Trade and Development Agency).

21 ‘‘(c) ACTIVITIES SUPPORTED.—Activities that may be

22 supported by programs under subsection (b) include pro23 moting actively the participation of United States compa24 nies and investors in the planning, financing, and construc25 tion of infrastructure for communications, transportation,
24

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1 including air transportation, and energy and trade includ2 ing highways, railroads, port facilities, shipping, banking,

3 insurance, telecommunications networks, and gas and oil

4 pipelines.

5 ‘‘(d) POLICY.—It is the sense of Congress that the

6 United States representatives at the International Bank for

7 Reconstruction and Development, the International Fi8 nance Corporation, and the European Bank for Reconstruc9 tion and Development should encourage lending to the coun10 tries of the South Caucasus and Central Asia to assist the

11 development of the physical infrastructure necessary for re12 gional economic cooperation.

13 ‘‘SEC. 499C. BORDER CONTROL ASSISTANCE.

14 ‘‘(a) PURPOSE OF ASSISTANCE.—The purpose of as15 sistance under this section includes the assistance of the

16 countries of the South Caucasus and Central Asia to secure

17 their borders and implement effective controls necessary to

18 prevent the trafficking of illegal narcotics and the prolifera19 tion of technology and materials related to weapons of mass

20 destruction (as defined in section 2332a(c)(2) of title 18,

21 United States Code), and to contain and inhibit

22 transnational organized criminal activities.

23 ‘‘(b) AUTHORIZATION FOR ASSISTANCE.—To carry out

24 the purpose of subsection (a), the President is authorized

25 to provide assistance to the countries of the South Caucasus
25

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1 and Central Asia to support the activities described in sub2 section (c).

3 ‘‘(c) ACTIVITIES SUPPORTED.—Activities that may be

4 supported by assistance under subsection (b) include assist5 ing those countries of the South Caucasus and Central Asia

6 in developing capabilities to maintain national border

7 guards, coast guard, and customs controls.

8 ‘‘(d) POLICY.—It is the sense of Congress that the

9 United States should encourage and assist the development

10 of regional military cooperation among the countries of the

11 South Caucasus and Central Asia through programs such

12 as the Central Asian Battalion and the Partnership for

13 Peace of the North Atlantic Treaty Organization.

14 ‘‘SEC. 499D. STRENGTHENING DEMOCRACY, TOLERANCE,

15 AND THE DEVELOPMENT OF CIVIL SOCIETY.

16 ‘‘(a) PURPOSE OF ASSISTANCE.—The purpose of as17 sistance under this section is to promote institutions of

18 democratic government and to create the conditions for the

19 growth of pluralistic societies, including religious tolerance

20 and respect for internationally recognized human rights.

21 ‘‘(b) AUTHORIZATION FOR ASSISTANCE.—To carry out

22 the purpose of subsection (a), the President is authorized

23 to provide the following types of assistance to the countries

24 of the South Caucasus and Central Asia:

25 ‘‘(1) Assistance for democracy building.
26

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1 ‘‘(2) Assistance for the development of non2 governmental organizations.

3 ‘‘(3) Assistance for development of independent

4 media.

5 ‘‘(4) Assistance for the development of the rule of

6 law.

7 ‘‘(5) International exchanges and advanced pro8 fessional training programs in skill areas central to

9 the development of civil society.

10 ‘‘(6) Assistance to promote increased adherence

11 to civil and political rights under section 116(e) of

12 this Act.

13 ‘‘(c) ACTIVITIES SUPPORTED.—Activities that may be

14 supported by assistance under subsection (b) include activi15 ties that are designed to advance progress toward the devel16 opment of democracy.

17 ‘‘(d) POLICY.—It is the sense of Congress that the Voice

18 of America and RFE/RL, Incorporated, should maintain

19 high quality broadcasting for the maximum duration pos20 sible in the native languages of the countries of the South

21 Caucasus and Central Asia.

22 ‘‘SEC. 499E. INELIGIBILITY FOR ASSISTANCE.

23 ‘‘(a) IN GENERAL.—Except as provided in subsection

24 (b), assistance may not be provided under this chapter for

25 the government of a country of the South Caucasus or Cen-
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1 tral Asia if the President determines and certifies to the

2 appropriate congressional committees that the government

3 of such country—

4 ‘‘(1) is engaged in a consistent pattern of gross

5 violations of internationally recognized human rights;

6 ‘‘(2) has, on or after the date of enactment of this

7 chapter, knowingly transferred to another country—

8 ‘‘(A) missiles or missile technology incon9 sistent with the guidelines and parameters of the

10 Missile Technology Control Regime (as defined

11 in section 11B(c) of the Export Administration

12 Act of 1979 (50 U.S.C. App. 2410b(c)); or

13 ‘‘(B) any material, equipment, or tech14 nology that would contribute significantly to the

15 ability of such country to manufacture any

16 weapon of mass destruction (including nuclear,

17 chemical, and biological weapons) if the Presi18 dent determines that the material, equipment, or

19 technology was to be used by such country in the

20 manufacture of such weapons;

21 ‘‘(3) has repeatedly provided support for acts of

22 international terrorism; or

23 ‘‘(4) is prohibited from receiving such assistance

24 by chapter 10 of the Arms Export Control Act or sec25 tion 306(a)(1) and 307 of the Chemical and Biologi-
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1 cal Weapons Control and Warfare Elimination Act of

2 1991 (22 U.S.C. 5604(a)(1), 5605).

3 ‘‘(b) EXCEPTIONS TO INELIGIBILITY.—

4 ‘‘(1) EXCEPTIONS.—Assistance prohibited by

5 subsection (a) or any similar provision of law, other

6 than assistance prohibited by the provisions referred

7 to in paragraphs (2) and (4) of subsection (a), may

8 be furnished under any of the following cir9 cumstances:

10 ‘‘(A) The President determines that furnish11 ing such assistance is important to the national

12 interest of the United States.

13 ‘‘(B) The President determines that furnish14 ing such assistance will foster respect for inter15 nationally recognized human rights and the rule

16 of law or the development of institutions of

17 democratic governance.

18 ‘‘(C) The assistance is furnished for the alle19 viation of suffering resulting from a natural or

20 man-made disaster.

21 ‘‘(D) The assistance is provided under the

22 secondary school exchange program administered

23 by the United States Information Agency.

24 ‘‘(2) REPORT TO CONGRESS.—The President shall im25 mediately report to Congress any determination
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1 under paragraph (1) (A) or (B) or any decision to

2 provide assistance under paragraph (1)(C).

3 ‘‘SEC. 499F. ADMINISTRATIVE AUTHORITIES.

4 ‘‘(a) ASSISTANCE THROUGH GOVERNMENTS AND NON5 GOVERNMENTAL ORGANIZATIONS.—Assistance under this

6 chapter may be provided to governments or through non7 governmental organizations.

8 ‘‘(b) USE OF ECONOMIC SUPPORT FUNDS.—Except as

9 otherwise provided, any funds that have been allocated

10 under chapter 4 of part II for assistance for the independent

11 states of the former Soviet Union may be used in accordance

12 with the provisions of this chapter.

13 ‘‘(c) TERMS AND CONDITIONS.—Assistance under this

14 chapter shall be provided on such terms and conditions as

15 the President may determine.

16 ‘‘(d) RELATIONSHIP TO OTHER LAWS.—

17 ‘‘(1) SUPERSEDING EXISTING LAW.—The au18 thorities contained in this chapter and in chapter 11

19 to provide assistance for the countries of the South

20 Caucasus and Central Asia shall supersede the

21 FREEDOM Support Act (22 U.S.C. 5801 et seq.).

22 ‘‘(2) AVAILABLE AUTHORITIES.—The authority

23 in this chapter to provide assistance for the countries

24 of the South Caucasus and Central Asia is in addi25 tion to the authority to provide such assistance under
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1 the FREEDOM Support Act (22 U.S.C. 5801 et seq.)

2 or any other Act, and the authorities applicable to the

3 provision of assistance under chapter 11 may be used

4 to provide assistance under this chapter.

5 ‘‘SEC. 499G. DEFINITIONS.

6 ‘‘In this chapter:

7 ‘‘(1) APPROPRIATE CONGRESSIONAL COMMIT8 TEES.—The term ‘appropriate congressional commit9 tees’ means the Committee on Foreign Relations of the

10 Senate and the Committee on International Relations

11 of the House of Representatives.

12 ‘‘(2) COUNTRIES OF THE SOUTH CAUCASUS AND

13 CENTRAL ASIA.—The term ‘countries of the South

14 Caucasus and Central Asia’ means Armenia, Azer15 baijan, Georgia, Kazakstan, Kyrgyzstan, Tajikistan,

16 Turkmenistan, and Uzbekistan.’’.

17 SEC. 6. ANNUAL REPORT.

18 Section 104 of the FREEDOM Support Act (22 U.S.C.

19 5814) is amended—

20 (1) by striking ‘‘and’’ at the end of paragraph

21 (3);

22 (2) by striking the period at the end of para23 graph (4) and inserting ‘‘; and’’; and

24 (3) by adding the following new paragraph:
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1 ‘‘(5) with respect to the countries of the South

2 Caucasus and Central Asia—

3 ‘‘(A) identifying the progress of United

4 States foreign policy to accomplish the policy

5 identified in section 3 of the Silk Road Strategy

6 Act of 1998;

7 ‘‘(B) evaluating the degree to which the as8 sistance authorized by chapter 12 of part I of the

9 Foreign Assistance Act of 1961 has been able to

10 accomplish the purposes identified in those sec11 tions; and

12 ‘‘(C) recommending any additional initia13 tives that should be undertaken by the United

14 States to implement the policy and purposes con15 tained in the Silk Road Strategy Act of 1998.’’.

16 SEC. 7. CONFORMING AMENDMENTS.

17 Section 102(a) of the FREEDOM Support Act (Public

18 Law 102–511) is amended in paragraphs (2) and (4) by

19 striking each place it appears ‘‘this Act)’’ and inserting

20 ‘‘this Act and the Silk Road Strategy Act of 1998)’’.

21 SEC. 8. DEFINITIONS.

22 In this Act:

23 (1) APPROPRIATE CONGRESSIONAL COMMIT24 TEES.—The term ‘‘appropriate congressional commit25 tees’’ means the Committee on Foreign Relations of
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1 the Senate and the Committee on International Rela2 tions of the House of Representatives.

3 (2) COUNTRIES OF THE SOUTH CAUCASUS AND

4 CENTRAL ASIA.—The term ‘‘countries of the South

5 Caucasus and Central Asia’’ means Armenia, Azer6 baijan, Georgia, Kazakstan, Kyrgyzstan, Tajikistan,

7 Turkmenistan, and Uzbekistan.