I
105TH CONGRESS
1ST SESSION
H. R. 3010
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.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 9, 1997
Mr. PALLONE (for himself, Mr. SHERMAN, Mr. FOX of Pennsylvania, Mr. VIS-
CLOSKY, Mr. BONIOR, Ms. ESHOO, Mr. KENNEDY of Rhode Island, Mr.
ROTHMAN, Mr. ROGAN, Mr. WEYGAND, Mr. RADANOVICH, Mr. MARKEY,
Mr. MORAN of Virginia, and Mr. KENNEDY of Massachusetts) introduced
the following bill; which was referred to the Committee on International
Relations, and in addition to the Committees on Ways and Means, and
Banking and Financial Services, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To amend the Foreign Assistance Act of 1961 to target
assistance to support the economic and political inde-
pendence of the countries of the South Caucasus.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘United States-
Caucasus Policy Act of 1997’’.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) The newly independent countries of the
South Caucasus region, Armenia, Georgia, and Azer-
baijan, after decades of domination as part of the
Soviet Union, have charted a new course as inde-
pendent, sovereign nations.
(2) Economic interdependence spurred mutual
cooperation among the peoples of the Caucasus and
restoration of the historic relationships and economic
ties between those peoples is an important element
of ensuring their sovereignty as well as the success
of democratic and market reforms.
(3) The development of strong political and eco-
nomic ties between countries of the South Caucasus
and the West will foster stability in the region.
(4) The development of open market economies,
open democratic systems, and the removal of all
blockades and border closures in the countries of the
South Caucasus will provide positive incentives for
international private investment, increased trade,
and other forms of commercial interactions with the
rest of the world.
(5) The Caspian Sea Basin, overlapping the
territory of the countries of the South Caucasus and
Central Asia, contains significant oil and gas re-
serves.
(6) The region of the South Caucasus and the
neighboring region of Central Asia may produce oil
and gas in sufficient quantities to reduce the de-
pendence of the United States on energy from the
volatile Persian Gulf region.
(7) United States foreign policy and inter-
national assistance should support democracy-build-
ing, free-market policies, human rights, and regional
economic integration among the countries of the
South Caucasus.
SEC. 3. POLICY OF THE UNITED STATES.
It shall be the policy of the United States in the coun-
tries of the South Caucasus—
(1) to promote and strengthen independence,
sovereignty, democratic government, and respect for
human rights;
(2) to assist actively in the resolution of re-
gional conflicts and the lifting of all blockades and
re-opening of closed borders;
(3) to promote friendly relations and economic
cooperation;
(4) to help promote market-oriented principles
and practices;
(5) to assist in the development of the infra-
structure necessary for communications, transpor-
tation, and energy and trade on an East-West axis
in order to build strong international relations and
commerce between those countries and the stable,
democratic, and market-oriented countries of the
Euro-Atlantic Community; and
(6) to support United States business interests
and investments in the region.
SEC. 4. UNITED STATES EFFORTS TO RESOLVE CONFLICTS
IN GEORGIA AND AZERBAIJAN.
It is the sense of Congress that the President should
use all diplomatic means practicable, including the engage-
ment of senior United States Government officials, to
press for an equitable, fair, and permanent resolution ac-
ceptable to all parties to the conflict in Nagorno-Karabakh
and other regional conflicts.
SEC. 5. AMENDMENT OF THE FOREIGN ASSISTANCE ACT OF
1961.
Part I of the Foreign Assistance Act of 1961 (22
U.S.C. 2151 et seq.) is amended by adding at the end
the following new chapter:
‘‘Chapter 12—Support for the Economic and
Political Independence of the Countries
of the South Caucasus
‘‘SEC. 499. UNITED STATES ASSISTANCE TO PROMOTE REC-
ONCILIATION 
AND 
RECOVERY 
FROM 
RE-
GIONAL CONFLICTS.
‘‘(a) PURPOSE OF ASSISTANCE.—The purposes of as-
sistance under this section are—
‘‘(1) to create the basis for reconciliation be-
tween conflicting parties;
‘‘(2) to promote economic development in areas
of the countries of the South Caucasus impacted by
civil conflict and war; and
‘‘(3) to encourage broad regional cooperation
among countries of the South Caucasus that have
been destabilized by internal conflicts.
‘‘(b) AUTHORIZATION FOR ASSISTANCE.—
‘‘(1) IN GENERAL.—To carry out the purposes
of subsection (a), the President is authorized to pro-
vide humanitarian assistance and economic recon-
struction assistance under this Act, and assistance
under the Migration and Refugee Assistance Act of
1962 (22 U.S.C. 2601 et seq.), to the countries of
the South Caucasus to support the activities de-
scribed in subsection (c).
‘‘(2) DEFINITION
OF
HUMANITARIAN
ASSIST-
ANCE.—In this subsection, the term ‘humanitarian
assistance’ means assistance to meet urgent humani-
tarian needs, in particular meeting needs for food,
medicine, medical supplies and equipment, and
clothing.
‘‘(c) ACTIVITIES SUPPORTED.—Activities that may
be supported by assistance under subsection (b) are lim-
ited to—
‘‘(1) providing for the essential needs of victims
of the conflicts and other individuals in need
throughout the South Caucasus region, including all
individuals residing in any area of such conflicts;
‘‘(2) facilitating the return of refugees and in-
ternally displaced persons to their homes; and
‘‘(3) assisting in the reconstruction of residen-
tial and economic infrastructure destroyed by war.
‘‘(d) POLICY.—It is the sense of Congress that the
United States should, where appropriate, support the es-
tablishment of neutral, multinational peacekeeping forces
to 
implement 
peace 
agreements 
reached 
between
belligerents in the countries of the South Caucasus.
‘‘SEC. 499A. ECONOMIC ASSISTANCE.
‘‘(a) PURPOSE OF ASSISTANCE.—The purpose of as-
sistance under this section is to foster the conditions nec-
essary for regional economic cooperation in the South
Caucasus.
‘‘(b) AUTHORIZATION FOR ASSISTANCE.—To carry
out the purpose of subsection (a), the President is author-
ized to provide technical assistance to the countries of the
South Caucasus to support the activities described in sub-
section (c).
‘‘(c) ACTIVITIES SUPPORTED.—Activities that may
be supported by assistance under subsection (b)—
‘‘(1) shall be limited to the development of the
structures and means necessary for the growth of
private sector economies based upon market prin-
ciples; and
‘‘(2) shall not include assistance that jeopard-
izes or otherwise interferes with the ongoing efforts
to resolve the conflicts in the South Caucasus re-
gion.
‘‘(d) POLICY.—It is the sense of Congress that the
United States should—
‘‘(1) assist the countries of the South Caucasus
to develop laws and regulations that would facilitate
the ability of those countries to join the World
Trade Organization;
‘‘(2) provide permanent nondiscriminatory trade
treatment (MFN status) to the countries of the
South Caucasus; and
‘‘(3) consider the establishment of zero-to-zero
tariffs between the United States and the countries
of the South Caucasus.
‘‘SEC. 499B. DEVELOPMENT OF INFRASTRUCTURE.
‘‘(a) PURPOSE OF ASSISTANCE.—The purposes of as-
sistance under this section are—
‘‘(1) to develop the physical infrastructure nec-
essary for regional cooperation among the countries
of the South Caucasus; and
‘‘(2) to encourage closer economic relations be-
tween those countries and the United States and
other developed nations.
‘‘(b) AUTHORIZATION FOR ASSISTANCE.—To carry
out the purposes of subsection (a), the following types of
assistance to the countries of the South Caucasus are au-
thorized to support the activities described in subsection
(c):
‘‘(1) Activities by the Export-Import Bank to
complete the review process for eligibility for financ-
ing under the Export-Import Bank Act of 1945.
‘‘(2) The provision of insurance, reinsurance, fi-
nancing, or other assistance by the Overseas Private
Investment Corporation.
‘‘(3) Assistance under section 661 of this Act
(relating to the Trade and Development Agency).
‘‘(c) ACTIVITIES SUPPORTED.—Activities that may
be supported by assistance under subsection (b)—
‘‘(1) shall be limited to promoting actively the
participation of United States companies and inves-
tors in the planning, financing, and construction of
infrastructure for communications, transportation,
and energy and trade including highways, railroads,
port facilities, shipping, banking, insurance, tele-
communications networks, and gas and oil pipelines;
and
‘‘(2) shall not include assistance that jeopard-
izes or otherwise interferes with the ongoing efforts
to resolve the conflicts in the South Caucasus re-
gion.
‘‘(d) POLICY.—It is the sense of Congress that the
United States representatives at the World Bank, the
International Monetary Fund, and the European Bank for
Reconstruction and Development should encourage lend-
ing to the countries of the South Caucasus to assist the
development of the physical infrastructure necessary for
regional economic cooperation.
‘‘SEC. 499C. SECURITY ASSISTANCE.
‘‘(a) PURPOSE OF ASSISTANCE.—The purpose of as-
sistance under this section is to assist countries of the
South Caucasus to secure their borders and implement ef-
fective controls necessary to prevent the trafficking of ille-
gal narcotics and the proliferation of technology and mate-
rials 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 crimi-
nal activities.
‘‘(b) AUTHORIZATION FOR ASSISTANCE.—To carry
out the purpose of subsection (a), the President is author-
ized to provide the following types of assistance to the
countries of the South Caucasus to support the activities
described in subsection (c):
‘‘(1) Assistance under chapter 5 of part II of
this Act (relating to international military education
and training).
‘‘(2) Assistance under chapter 8 of this part of
this Act (relating to international narcotics control
assistance).
‘‘(3) The transfer of excess defense articles
under section 516 of this Act (22 U.S.C. 2321j).
‘‘(c) ACTIVITIES SUPPORTED.—Activities that may
be supported by assistance under subsection (b)—
‘‘(1) shall be limited to assisting those countries
of the South Caucasus in developing capabilities to
maintain national border guards, coast guard, and
customs controls; and
‘‘(2) shall not include assistance that jeopard-
izes or otherwise interferes with the ongoing efforts
to resolve the conflicts in the South Caucasus re-
gion.
‘‘(d) POLICY.—It is the sense of Congress that the
United States should encourage and assist the develop-
ment of regional military cooperation among the countries
of the South Caucasus through programs such as the
Central Asian Battalion and the Partnership for Peace of
the North Atlantic Treaty Organization.
‘‘SEC. 499D. STRENGTHENING DEMOCRACY, TOLERANCE,
AND THE DEVELOPMENT OF CIVIL SOCIETY.
‘‘(a) PURPOSE OF ASSISTANCE.—The purpose of as-
sistance under this section is to promote institutions of
democratic government and to create the conditions for
the growth of pluralistic societies, including religious toler-
ance.
‘‘(b) AUTHORIZATION FOR ASSISTANCE.—To carry
out the purpose of subsection (a), the President is author-
ized to provide the following types of assistance to the
countries of the South Caucasus.
‘‘(1) Technical assistance for democracy build-
ing.
‘‘(2) Technical assistance for the development
of nongovernmental organizations.
‘‘(3) Technical assistance for development of
independent media.
‘‘(4) Technical assistance for the development
of the rule of law.
‘‘(5) International exchanges and advanced pro-
fessional training programs in skill areas central to
the development of civil society.
‘‘(c) ACTIVITIES SUPPORTED.—Activities that may
be supported by assistance under subsection (b) are lim-
ited to activities that directly and specifically are designed
to advance progress toward the development of democracy.
‘‘(d) POLICY.—It is the sense of Congress that the
Voice of America and RFE/RL, Incorporated, should
maintain high quality broadcasting for the maximum du-
ration possible in the native languages of the countries of
the South Caucasus.
‘‘SEC. 499E. INELIGIBILITY FOR ASSISTANCE.
‘‘(a) IN GENERAL.—Except as provided in subsection
(b), assistance may not be provided under this chapter for
a country of the South Caucasus if the President deter-
mines and certifies to the appropriate congressional com-
mittees that the country—
‘‘(1) is engaged in a consistent pattern of gross
violations 
of 
internationally 
recognized 
human
rights;
‘‘(2) has established any border closure or use
of an economic or commercial blockade;
‘‘(3) has, on or after the date of enactment of
this chapter, knowingly transferred to another coun-
try—
‘‘(A) missiles or missile technology incon-
sistent with the guidelines and parameters of
the Missile Technology Control Regime (as de-
fined in section 11B(c) of the Export Adminis-
tration Act of 1979 950 U.S.C. App. 2410b(c);
or
‘‘(B) any material, equipment, or tech-
nology 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 Presi-
dent determines that the material, equipment,
or technology was to be used by such country
in the manufacture of such weapons;
‘‘(4) has supported acts of international terror-
ism;
‘‘(5) is prohibited from receiving such assist-
ance 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 Elimi-
nation Act of 1991 (22 U.S.C. 5604(a)(1), 5605); or
‘‘(6) has initiated an act of aggression against
another state or ethnic population in the region.
‘‘(b) EXCEPTION TO INELIGIBILITY.—Notwithstand-
ing subsection (a), assistance may be provided under this
chapter if the President determines and certifies in ad-
vance to the appropriate congressional committees that
the provision of such assistance is important to the na-
tional interest of the United States.
‘‘SEC. 499F. ADMINISTRATIVE AUTHORITIES.
‘‘(a) ASSISTANCE THROUGH GOVERNMENTS
AND
NONGOVERNMENTAL ORGANIZATIONS.—Assistance under
this chapter may be provided to governments or through
nongovernmental organizations.
‘‘(b) USE OF ECONOMIC SUPPORT FUNDS.—Except
as otherwise provided, any funds that have been allocated
under chapter 4 of part II for assistance for the independ-
ent states of the former Soviet Union may be used in ac-
cordance with the provisions of this chapter.
‘‘(c) TERMS
AND CONDITIONS.—Assistance under
this chapter shall be provided on such terms and condi-
tions as the President may determine.
‘‘(d) SUPERSEDING EXISTING LAW.—The authority
to provide assistance under this chapter supersedes any
other provision of law, except for—
‘‘(1) this chapter;
‘‘(2) section 634A of this Act and comparable
notification requirements contained in sections of the
annual foreign operations, export financing, and re-
lated programs Act;
‘‘(3) section 907 of the Freedom for Russia and
Emerging Eurasian Democracies and Open Markets
Support Act of 1992 (22 U.S.C. 5812 note; relating
to restriction on assistance to Azerbaijan); and
‘‘(4) section 1341 of title 31, United States
Code (commonly referred to as the ‘‘Anti-Deficiency
Act’’), the Congressional Budget and Impoundment
Control Act of 1974, the Balanced Budget and
Emergency Deficit Control Act of 1985, and the
Budget Enforcement Act of 1990.
‘‘SEC. 499G. DEFINITIONS.
‘‘In this chapter:
‘‘(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘appropriate congressional com-
mittees’ means the Committee on Foreign Relations
of the Senate and the Committee on International
Relations of the House of Representatives.
‘‘(2) COUNTRIES OF THE SOUTH CAUCASUS.—
The term ‘countries of the South Caucasus’ means
Armenia, Azerbaijan, and Georgia.’’.
SEC. 6. ANNUAL REPORT.
Beginning one year after the date of enactment of
this Act, and annually thereafter, the President shall sub-
mit a report to the appropriate congressional commit-
tees—
(1) identifying the progress of United States
foreign policy to accomplish the policy identified in
section 3;
(2) evaluating the degree to which the assist-
ance authorized by chapter 12 of part I of the For-
eign Assistance Act of 1961, as added by section 5
of this Act, was able to accomplish the purposes
identified in those sections; and
(3) recommending any additional initiatives
that should be undertaken by the United States to
implement the policy and purposes contained in this
Act.
SEC. 7. DEFINITIONS.
In this Act:
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means the Committee on Foreign Relations
of the Senate and the Committee on International
Relations of the House of Representatives.
(2) CENTRAL ASIA.—The term ‘‘Central Asia’’
means 
Kazakstan, 
Kyrgystan, 
Tajikistan,
Turkmenistan, and Uzbekistan.
(3) COUNTRIES OF THE SOUTH CAUCASUS.—
The term ‘‘countries of the South Caucasus’’ means
Armenia, Azerbaijan, and Georgia.
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