I
105TH CONGRESS
1ST SESSION
H. R. 2983
To promote long term stability in the Caucasus, deter renewed aggression,
and facilitate the peaceful resolution of the Nagorno-Karabagh conflict.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 9, 1997
Mr. SHERMAN (for himself, Mr. FOX of Pennsylvania, Mr. PALLONE, Mr. VIS-
CLOSKY, Mr. BONIOR, Ms. ESHOO, Mr. KENNEDY of Rhode Island, Mr.
ROTHMAN, Mr. ROGAN, Mr. WEYGAND, Mr. RADANOVICH, Mr. MORAN
of Virginia, Mr. KENNEDY of Massachusetts, and Mr. MARKEY) intro-
duced the following bill; which was referred to the Committee on Inter-
national Relations, and in addition to the Committee on Banking and Fi-
nancial Services, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall within
the jurisdiction of the committee concerned
A BILL
To promote long term stability in the Caucasus, deter re-
newed aggression, and facilitate the peaceful resolution
of the Nagorno-Karabagh conflict.
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 ‘‘Caucasus Peace and
Stability Act of 1997’’.
SEC. 2. FINDINGS.
The Congress makes the following findings:
(1) In 1988, the Government of Azerbaijan ini-
tiated a campaign of armed aggression, deportations,
pogroms, and blockades against the population of
Nagorno-Karabagh which had exercised its right to
self-determination.
(2) After more than six years of armed conflict,
Nagorno-Karabagh, Armenia and Azerbaijan agreed,
in May of 1994, to implement a cease-fire.
(3) Despite the existence of this cease-fire since
May of 1994, Azerbaijan has maintained its block-
ades of Armenia and Nagorno-Karabagh, which has
directly resulted in extreme hardship, loss of life and
economic devastation in both Armenia and Nagorno-
Karabagh.
(4) Both Nagorno-Karabagh and Azerbaijan
are participating in the peace process organized by
the Minsk Group of the Organization for Security
and Cooperation in Europe (OSCE).
(5) The United States has been an active par-
ticipant in the OSCE peace negotiations and cur-
rently serves as co-chair of the Minsk Group along
with France and Russia.
(6) Renewed aggression by Azerbaijan and a re-
turn to armed hostilities will destabilize a region of
major geopolitical importance to the United States,
threaten the independence of the Caucasus states,
and significantly hinder the region’s economic and
political development.
SEC. 3. DECLARATIONS OF POLICY.
The Congress declares that it is the policy of the
United States—
(1) to promote a negotiated settlement of the
Nagorno-Karabagh conflict through active participa-
tion in the Minsk Group of the Organization for Se-
curity and Cooperation in Europe (OSCE);
(2) to act as an impartial mediator, facilitating
direct talks between Nagorno-Karabagh and Azer-
baijan, and to remain neutral on the status and se-
curity issues being negotiated by the parties to the
conflict;
(3) not to take any action that would jeopardize
the ongoing efforts of the OSCE Minsk Group to
reach a peaceful solution to the conflict; and
(4) to foster confidence-building measures and
to help create incentives for peace which will lead to
a lasting and equitable long-term settlement of the
conflict.
SEC. 4. IMPOSITION OF SANCTIONS.
(a) OPERATION, INVESTMENT, OR OTHER TRADE IN
OR WITH AZERBAIJAN.—A United States person may not,
either directly or through another person, operate or in-
vest in Azerbaijan or trade in goods or services from Azer-
baijan if the Government of Azerbaijan is engaging in
armed aggression or renewed use of force against Armenia
or Nagorno-Karabagh.
(b) COMMERCIAL MILITARY OR DUAL-USE SALES.—
A license may not be issued under section 38 of the Arms
Export Control Act (22 U.S.C. 2778) for the export to
Azerbaijan of any defense or dual-use article, service, or
other technology if the Government of Azerbaijan is en-
gaging in armed aggression or renewed use of force
against Armenia or Nagorno-Karabagh.
(c) MULTILATERAL
ASSISTANCE.—The President
shall instruct the United States Executive Director of each
international financial institution to which the United
States is a member to use the voice and vote of the United
States to oppose any loan or other utilization of the funds
of the respective institutions to or from Azerbaijan if the
Government of Azerbaijan is engaging in armed aggres-
sion or renewed use of force against Armenia or Nagorno-
Karabagh.
(d) WAIVER.—The President may waive any require-
ment under subsections (a) through (c) on a case-by-case
basis beginning not less than 30 days after the date on
which the President determines and reports to the Con-
gress that it is important to the national interest of the
United States to do so.
SEC. 5. DEFINITION.
As used in this Act, the term ‘‘United States person’’
means—
(1) a citizen or permanent resident of the
United States;
(2) a corporation, partnership, or association
organized under the laws of the United States or
having its principle base in the United States; and
(3) a corporation, partnership, or association in
which at least a 25 percent interest is owned or oth-
erwise controlled by a natural person, corporation,
partnership, or association that qualifies as a United
States person under paragraph (1) or (2).
Æ