I
106TH CONGRESS
1ST SESSION
H. R. 1152
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 HOUSE OF REPRESENTATIVES
MARCH 17, 1999
Mr. BEREUTER (for himself, Mr. LANTOS, Mr. BERMAN, and Mr. PITTS) in-
troduced the following bill; which was referred to the Committee on Inter-
national Relations
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 and
Central Asia.
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 ‘‘Silk Road Strategy
Act of 1999’’.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) The ancient Silk Road, once the economic
lifeline of Central Asia and the South Caucasus, tra-
versed much of the territory now within the coun-
tries 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 eco-
nomic ties between those peoples is an important ele-
ment of ensuring their sovereignty as well as the
success of democratic and market reforms.
(3) The development of strong political, eco-
nomic, and security ties among countries of the
South Caucasus and Central Asia and the West will
foster stability in this region, which is vulnerable to
political and economic pressures from the south,
north, and east.
(4) The development of open market economies
and open democratic systems in the countries of the
South Caucasus and Central Asia will provide posi-
tive incentives for international private investment,
increased trade, and other forms of commercial
interactions with the rest of the world.
(5) Many of the countries of the South
Caucasus have secular Muslim governments that are
seeking closer alliance with the United States and
that have active and cordial diplomatic relations with
Israel.
(6) The region of the South Caucasus and Cen-
tral Asia could produce oil and gas in sufficient
quantities to reduce the dependence of the United
States on energy from the volatile Persian Gulf re-
gion.
(7) United States foreign policy and inter-
national 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 coun-
tries 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 under-
standing and counter racism and anti-Semitism;
(3) to assist actively in the resolution of re-
gional conflicts and to facilitate the removal of im-
pediments 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 infra-
structure necessary for communications, transpor-
tation, education, health, and energy and trade on
an East-West axis in order to build strong inter-
national 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 engage-
ment 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 ECO-
NOMIC AND POLITICAL INDEPEND-
ENCE OF THE COUNTRIES OF THE
SOUTH CAUCASUS AND CENTRAL ASIA
‘‘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 include—
‘‘(1) the creation of the basis for reconciliation
between belligerents in the countries of the South
Caucasus and Central Asia;
‘‘(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 co-
operation among countries of the South Caucasus
and Central Asia that have been destabilized by in-
ternal 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 for the countries of the South
Caucasus and Central Asia to support the activities
described in subsection (c).
‘‘(2) DEFINITION
OF
HUMANITARIAN
ASSIST-
ANCE.—In this subsection, the term ‘humanitarian
assistance’ means assistance to meet humanitarian
needs, including needs for food, medicine, medical
supplies and equipment, education, 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 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 belliger-
ents in the countries of the South Caucasus and Central
Asia.
‘‘SEC. 499A. ECONOMIC ASSISTANCE.
‘‘(a) PURPOSE OF ASSISTANCE.—The purpose of as-
sistance under this section is to foster economic growth
and development, including the conditions necessary for
regional economic cooperation, among the countries of the
South Caucasus and Central Asia.
‘‘(b) AUTHORIZATION FOR ASSISTANCE.—To carry
out the purpose of subsection (a), the President is author-
ized to provide assistance for the countries of the South
Caucasus and Central Asia to support the activities de-
scribed in subsection (c).
‘‘(c) ACTIVITIES SUPPORTED.—In addition to the ac-
tivities described in section 498, activities supported by
assistance under subsection (b) should support the devel-
opment 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 regu-
lations that would facilitate the ability of those coun-
tries to develop free market economies and to join
the World Trade Organization to enjoy all the bene-
fits 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 pro-
grams under this section include—
‘‘(1) to develop the physical infrastructure nec-
essary 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-bor-
der 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 pro-
grams for the countries of the South Caucasus and Cen-
tral 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 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 programs under subsection (b) include
promoting actively the participation of United States com-
panies and investors in the planning, financing, and con-
struction of infrastructure for communications, transpor-
tation, 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 Fi-
nance Corporation, and the European Bank for Recon-
struction and Development should encourage lending to
the countries of the South Caucasus and Central Asia to
assist the development of the physical infrastructure nec-
essary for regional economic cooperation.
‘‘SEC. 499C. BORDER CONTROL ASSISTANCE.
‘‘(a) PURPOSE OF ASSISTANCE.—The purpose of as-
sistance under this section includes the assistance of the
countries of the South Caucasus and Central Asia to se-
cure their borders and implement effective controls nec-
essary 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 con-
tain and inhibit transnational organized criminal activi-
ties.
‘‘(b) AUTHORIZATION FOR ASSISTANCE.—To carry
out the purpose of subsection (a), the President is author-
ized to provide assistance to the countries of the South
Caucasus and Central Asia to support the activities de-
scribed 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 Cen-
tral 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 develop-
ment of regional military cooperation among the countries
of the South Caucasus and Central Asia through pro-
grams such as the Central Asian Battalion and the Part-
nership for Peace of the North Atlantic Treaty Organiza-
tion.
‘‘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 and respect for internationally recognized human
rights.
‘‘(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 and Central Asia:
‘‘(1) Assistance for democracy building, includ-
ing programs to strengthen parliamentary institu-
tions and practices.
‘‘(2) Assistance for the development of non-
governmental organizations.
‘‘(3) Assistance for development of independent
media.
‘‘(4) Assistance for the development of the rule
of law, a strong independent judiciary, and trans-
parency in political practice and commercial trans-
actions.
‘‘(5) International exchanges and advanced pro-
fessional 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 du-
ration 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 govern-
ment 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 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 (50 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;
‘‘(3) has repeatedly provided support for acts of
international terrorism; or
‘‘(4) 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).
‘‘(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 cir-
cumstances:
‘‘(A) The President determines that fur-
nishing such assistance is important to the na-
tional interest of the United States.
‘‘(B) The President determines that fur-
nishing 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 al-
leviation of suffering resulting from a natural
or man-made disaster.
‘‘(D) The assistance is provided under the
secondary school exchange program adminis-
tered by the United States Information Agency.
‘‘(2) REPORT
TO
CONGRESS.—The President
shall immediately report to Congress any determina-
tion 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 inde-
pendent 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 condi-
tions as the President may determine.
‘‘(d) 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 au-
thority 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 assist-
ance under chapter 11 may be used to provide assistance
under this chapter.
‘‘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
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 para-
graph (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 1999;
‘‘(B) evaluating the degree to which the as-
sistance 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 initia-
tives that should be undertaken by the United
States to implement the policy and purposes
contained in the Silk Road Strategy Act of
1999.’’.
SEC. 7. CONFORMING AMENDMENTS.
Section 102(a) of the FREEDOM Support Act (Pub-
lic 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 1999)’’.
SEC. 8. 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) COUNTRIES OF THE SOUTH CAUCASUS AND
CENTRAL ASIA.—The term ‘‘countries of the South
Caucasus and Central Asia’’ means Armenia, Azer-
baijan, Georgia, Kazakstan, Kyrgyzstan, Tajikistan,
Turkmenistan, and Uzbekistan.
Æ