[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2011 Introduced in House (IH)]
105th CONGRESS
1st Session
H. R. 2011
To impose certain sanctions on the People's Republic of China, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 23, 1997
Mr. Hutchinson introduced the following bill; which was referred to the
Committee on International Relations, and in addition to the Committees
on Banking and Financial Services, Ways and Means, and the Judiciary,
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 impose certain sanctions on the People's Republic of China, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``China Sanctions and Human Rights
Advancement Act''.
SEC. 2. PURPOSE.
It is the purpose of this Act--
(1) to impose certain sanctions on the People's Republic of
China in response to the practices of the Government of the
People's Republic of China which limit the free exercise of
religion and other human rights; and
(2) to require an annual report from the President on such
practices.
SEC. 3. SANCTIONS.
(a) Denial of Entry of Certain Government Officials.--
(1) Denial of entry.--Except as provided in paragraph (2),
the Secretary of State may not issue any visa to, and the
Attorney General may not admit to the United States, any of the
following officials of the Government of the People's Republic
of China:
(A) High-ranking officials of the Public Security
Bureau, as determined by the Secretary.
(B) High-ranking officials of the Religious Affairs
Bureau, as so determined.
(C) Other high-ranking officials determined by the
Secretary to be involved in the implementation or
enforcement of laws and directives of the People's
Republic of China which restrict religious freedom.
(D) High-ranking officials determined by the
Secretary to be involved in the implementation or
enforcement of laws and directives of the People's
Republic of China on family planning.
(E) Officials determined by the Secretary to have
been materially involved in ordering or carrying out
the massacre of students in Tiananmen Square in 1989.
(2) Waiver.--
(A) In general.--Subject to subparagraph (B), the
President may waive the applicability of paragraph (1)
with respect to any official otherwise covered by that
paragraph if the President determines that the waiver
with respect to the official is in the national
security interests of the United States.
(B) Notice.--
(i) Requirement.--The President may not
exercise the authority provided in subparagraph
(A) with respect to an official unless the
President submits to Congress a written
notification of the exercise of the authority.
(ii) Contents.--Each notice shall include a
justification of the exercise of the authority,
including--
(I) a statement why the exercise of
the authority is in the national
security interests of the United
States; and
(II) a statement why such interests
supersede the need for the United
States to make the response described
in section 2(1).
(b) Multilateral Assistance.--
(1) International bank for reconstruction and
development.--
(A) Opposition to assistance.--The Secretary of the
Treasury shall instruct the United States Executive
Director of the International Bank for Reconstruction
and Development to vote against any loan or other
utilization of the funds of the bank to or for the
People's Republic of China.
(B) Opposition to modification of single country
loan limit.--The Secretary shall instruct the United
States Executive Director of the International Bank for
Reconstruction and Development to vote against any
modification of the limitation on the share of the
total funds of the Bank that may be loaned to a single
country.
(C) Limitation on domestic borrowing.--
(i) Limitation.--The Secretary shall
restrict the ability of the International Bank
for Reconstruction and Development to borrow in
United States capital markets in a fiscal year
by an amount equal to the amount of the loans
approved for the People's Republic of China in
the preceding fiscal year 1997 for purposes
other than to meet basic human needs.
(ii) Exception.--Clause (i) shall not apply
to borrowing for purposes of meeting basic
human needs.
(2) Asian development bank.--
(A) Opposition to assistance.--The Secretary shall
instruct the United States Director of the Asian
Development Bank to vote against any loan or other
utilization of the funds of the Bank to or for the
People's Republic of China.
(B) Limitation on domestic borrowing.--
(i) Limitation.--The Secretary shall
restrict the ability of the Asian Development
Bank to borrow in United States capital markets
in a fiscal year by an amount equal to the
amount of the loans approved for the People's
Republic of China in the preceding fiscal year
1997 for purposes other than to meet basic
human needs.
(ii) Exception.--Clause (i) shall not apply
to borrowing for purposes of meeting basic
human needs.
(3) International monetary fund.--The Secretary shall
instruct the United States Executive Director of the
International Monetary Fund to vote against any loan or other
utilization of the funds of the Fund to or for the People's
Republic of China.
(4) Reduction in contributions for multilateral
assistance.--The amount of the contributions of the United
States to a multilateral development bank in or for a fiscal
year shall be the amount otherwise available for such
contributions in the fiscal year less the amount the committed
by the bank to lend, utilize, or otherwise make available to or
for the People's Republic of China during the preceding fiscal
year for purposes other than basic human needs.
(5) Definitions.--In this subsection:
(A) Basic human needs.--The term, ``basic human
needs'' refers to human needs arising from natural
disasters or famine.
(B) Multilateral development bank.--The term
``multilateral development bank'' means the following:
(i) The International Bank for
Reconstruction and Development.
(ii) The International Development
Association.
(iii) The International Finance
Corporation.
(iv) The Asian Development Bank.
(c) Reduction in Assistance for Organizations Providing Family
Planning Assistance in China.--
(1) Reduction.--The amount of financial assistance provided
by the United States in a fiscal year to a covered organization
shall be the amount otherwise available for financial
assistance to the organization in the fiscal year less the
amount utilized by the organization for family planning
services or assistance in or for the People's Republic of China during
the preceding fiscal year.
(2) Certification.--
(A) Requirement.--In each fiscal year in which a
covered organization is provided financial assistance
by the United States, the organization shall certify to
the Secretary of State the amount, if any, utilized by
the organization in the preceding fiscal year for
family planning services or assistance in or for the
People's Republic of China.
(B) Deadline.--A covered organization shall make
the certification required for a fiscal year not later
than October 31 of that fiscal year.
(3) Definition.--In this subsection, the term ``covered
organization'' means an organization that provides family
planning services or assistance in or for the People's Republic
of China.
(d) Sanctions Regarding China North Industries Group and China Poly
Group.--
(1) Sanctions.--Except as provided in paragraph (2), the
President shall--
(A) prohibit the importation into the United States
of all products that are produced, grown, or
manufactured by Poly or Norinco, the parent company of
Poly or Norinco, or any affiliate, subsidiary, or
successor entity of Poly or Norinco;
(B) deny or impose restrictions on the entry into
the United States of any foreign national serving as an
officer, director, or employee of an entity described
in subparagraph (A);
(C) prohibit the issuance to a person or entity
described in subparagraph (A) of licenses in connection
with the export of any item on the United States
Munitions List;
(D) prohibit the export to a person or entity
described in subparagraph (A) of any goods or
technology on which export controls are in effect under
section 5 or 6 of the Export Administration Act of
1979;
(E) direct the Export-Import Bank of the United
States not to give approval to the issuance of any
guarantee, insurance, extension of credit, or
participation in the extension of credit, with respect
to a person or entity described in subparagraph (A);
(F) prohibit United States nationals from directly
or indirectly issuing any guarantee for any loan or
other investment to, issuing any extension of credit
to, or making any investment in, a person or entity
described in subparagraph (A); and
(G) prohibit departments and agencies of the United
States and United States nationals from entering into
any contract with a person or entity described in
subparagraph (A) for the procurement or other provision
of goods or services from such person or entity.
(2) Exceptions.--
(A) In general.--The President shall not impose
sanctions under this subsection--
(i) in the case of the procurement of
defense articles or defense services--
(I) under contracts or subcontracts
that are in effect on October 1, 1997
(including the exercise of options for
production quantities to satisfy United
States operational military
requirements);
(II) if the President determines
that the person or entity to whom the
sanctions would otherwise be applied is
a sole source supplier of essential
defense articles or services and no
alternative supplier can be identified;
or
(III) if the President determines
that such articles or services are
essential to the national security; or
(ii) in the case of--
(I) products or services provided
under contracts or binding agreements
(as such terms are defined by the
President in regulations) or joint
ventures entered into before October 1,
1997;
(II) spare parts;
(III) component parts that are not
finished products but are essential to
United States products or production;
(IV) routine servicing and
maintenance of products; or
(V) information and technology
products and services.
(B) Immigration restrictions.--The President shall
not apply the restrictions described in paragraph
(1)(B) to a person described in paragraph (1)(A), if
the President, after consultation with the Attorney
General, determines that the presence of the person in
the United States is necessary for a Federal or State
judicial proceeding against a person or entity
described in paragraph (1)(A).
(3) Definitions.--In this subsection:
(A) Affiliate.--The term ``affiliate'' does not
include any United States national engaged in a
business arrangement with a person or entity described
in paragraph (1)(A).
(B) Component part.--The term ``component part''
means any article that is not usable for its intended
function without being embedded or integrated into any
other product and, if used in the production of a
finished product, would be substantially transformed in
that process.
(C) Finished product.--The term ``finished
product'' means any article that is usable for its
intended function without being embedded in or
integrated into any other product, but does not include
an article produced by a person or entity other than a
person or entity described in paragraph (1)(A) that
contains parts or components of a person or entity
described in paragraph (1)(A) if the parts or
components have been substantially transformed during
production of the finished product.
(D) Investment.--The term ``investment'' includes
any contribution or commitment of funds, commodities,
services, patents, processes, or techniques, in the
form of--
(i) a loan or loans;
(ii) the purchase of a share of ownership;
(iii) participation in royalties, earnings,
or profits; and
(iv) the furnishing of commodities or
services pursuant to a lease or other contract,
but does not include routine maintenance of property.
(E) Norinco.--The term ``Norinco'' refers to China
North Industries Group.
(F) Poly.--The term ``Poly'' refers to China Poly
Group, also known as Polytechnologies Incorporated or
BAOLI.
(G) United states national.--
(i) In general.--The term ``United States
national'' means--
(I) any United States citizen; and
(II) any corporation, partnership,
or other organization created under the
laws of the United States, any State,
the District of Columbia, or any
territory or possession of the United
States.
(ii) Exception.--The term ``United States
national'' does not include a subsidiary or
affiliate of corporation, partnership, or
organization that is a United States national
if the subsidiary or affiliate is located
outside the United States.
(e) Consultations With Allies.--
(1) Sense of congress.--It is the sense of Congress that
the President should begin consultations with the major allies
and other trading partners of the United States in order to
encourage such allies and trading partners to adopt sanctions
against the People's Republic of China that are similar to the
sanctions imposed on the People's Republic of China by this
section.
(2) Report.--Not later than 45 days after the completion of
the first G-7 summit meeting after the date of enactment of
this Act, the President shall submit to Congress a report on
the results, if any, of consultations referred to in paragraph
(1).
(f) Duration of Sanctions.--Except as provided in subsection
(e)(2), the requirements and limitations set forth in this section
shall apply during the period beginning on October 1, 1997, and ending
on September 30, 1998.
SEC. 4. ANNUAL REPORT ON HUMAN RIGHTS PRACTICES OF THE GOVERNMENT OF
THE PEOPLE'S REPUBLIC OF CHINA.
Not later than 9 months after the date of enactment of this Act,
and every year thereafter, the President shall submit to Congress a
report on the practices of the Government of the People's Republic of
China with respect to the free exercise of religion and other human
rights during the one-year period preceding the submittal of the
report. The report shall include a detailed statement of the
improvements, if any, in such practices.
SEC. 5. PUBLICATION OF LIST OF COMPANIES OWNED BY THE PEOPLE'S
LIBERATION ARMY.
(a) Publication.--Not later than January 31 each year, the
Secretary of State shall publish in the Federal Register a list of each
corporation or other business entity that was owned in whole or in part
by the People's Liberation Army of the People's Republic of China as of
December 31 of the preceding year.
(b) Protection of Sources and Methods.--In publishing the list each
under subsection (a), the Secretary shall take appropriate actions to
ensure the protection of sources and methods of gathering intelligence.
SEC. 6. TRAINING FOR IMMIGRATION OFFICERS REGARDING RELIGIOUS
PERSECUTION.
Section 235 of the Immigration and Nationality Act (8 U.S.C. 1225)
is amended by adding at the end the following:
``(d) Training on Religious Persecution.--The Attorney General
shall establish and operate a program to provide to immigration
officers performing functions under subsection (b), or section 207 or
208, training on religious persecution, including training on--
``(1) the fundamental components of the right to freedom of
religion;
``(2) the variation in beliefs of religious groups; and
``(3) the governmental and nongovernmental methods used in
violation of the right to freedom of religion.''.
SEC. 7. PROMOTION OF DEMOCRATIC VALUES IN THE PEOPLE'S REPUBLIC OF
CHINA.
(a) Student, Cultural, and Legislative Exchange Programs.--
Notwithstanding any other provision of law, the aggregate amount
utilized and made available by the Director of the United States
Information Agency in fiscal year 1998 for programs and grants relating
to student, cultural, and legislative exchange activities in or with
the People's Republic of China may not be less than an amount equal to
twice the aggregate amount utilized and made available for such
programs and grants in fiscal year 1997.
(b) Radio Free Asia.--Notwithstanding any other provision of law,
the total amount of grants made to Radio Free Asia in fiscal year 1998
under section 309 of the United States International Broadcasting Act
of 1994 (22 U.S.C. 6208) may not be less than an amount equal to twice
the amount of grants made to Radio Free Asia in fiscal year 1997 under
that section.
(c) National Endowment for Democracy.--Notwithstanding any other
provision of law, the amount of the grant made to the National
Endowment for Democracy by the Director of the United States
Information Agency in fiscal year 1998 for purposes of programs
relating to the People's Republic of China may not be less than an
amount equal to twice the amount of the grant made to the Endowment in
fiscal year 1997 for purposes of such programs.
SEC. 8. TRANSFERS OF SENSITIVE EQUIPMENT AND TECHNOLOGY BY THE PEOPLE'S
REPUBLIC OF CHINA.
(a) Findings.--Congress makes the following findings:
(1) Credible allegations exist that the People's Republic
of China has transferred equipment and technology as follows:
(A) Gyroscopes, accelerometers, and test equipment
for missiles to Iran.
(B) Chemical weapons equipment and technology to
Iran.
(C) Missile guidance systems and computerized
machine tools to Iran.
(D) Industrial furnace equipment and high
technology diagnostic equipment to a nuclear facility
in Pakistan.
(E) Blueprints and equipment to manufacture M-11
missiles to Pakistan.
(F) M-11 missiles and components to Pakistan.
(2) The Department of State has failed to determine whether
most such transfers violate provisions of relevant United
States and Executive orders relating to the proliferation of
sensitive equipment and technology, including the Arms Export
Control Act, the Nuclear Proliferation Prevention Act of 1994,
the Export Administration Act of 1979, the Export-Import Bank
Act of 1945, and the Iran-Iraq Arms Non-Proliferation Act of
1992, and Executive Order 12938.
(3) Where the Department of State has made such
determinations, it has imposed the least onerous form of
sanction, which significantly weakens the intended deterrent
effect of the sanctions provided for in such laws.
(4) The Clinton Administration decided not to impose
sanctions on the People's Republic of China for its transfer of
C-802 anti-ship cruise missiles to Iran, finding that the
transfer was not ``destabilizing''.
(5) That finding is contrary to the judgment of the
commander of the United States Fifth Fleet, elements of which
are frequently deployed in and around the Persian Gulf.
(6) Despite the fact that officials of the People's
Republic of China were responsible for the sale to Pakistan of
specialized ring magnets, which are used to enrich uranium for
use in nuclear weapons, the Clinton Administration did not
impose sanctions on either the People's Republic of China or
Pakistan for such sale, even though sanctions are required for
such sale under law.
(b) Sense of Congress.--It is the sense of Congress that--
(1) the transfers of equipment and technology by the
People's Republic of China described in subsection (a)(1) pose
a threat to the national security interests of the United
States;
(2) the failure of the Clinton Administration to initiate a
formal process to determine whether to impose sanctions for
such transfers under United States laws intended to halt the
proliferation of sensitive equipment and technology contributes
to the threat posed to the national security interests of the
United States by the proliferation of such equipment and
technology; and
(3) the President should immediately initiate the
procedures necessary to determine whether sanctions should be
imposed under United States law for such transfers.
(c) Report.--Not later than 60 days after the date of enactment of
this Act, the President shall submit to Congress a report, in both
classified and unclassified form, setting forth--
(1) the date, if any, of the commencement and of the
conclusion of each formal process conducted by the Department
of State to determine whether to impose sanctions for each
transfer described in subsection (a)(1);
(2) the facts providing the basis for each determination
not to impose sanctions on the Government of the People's
Republic of China, or entities within or having a relationship
with that government, for each transfer, and the legal analysis
supporting such determination; and
(3) a schedule for initiating a formal process described in
paragraph (1) for each transfer not yet addressed by such
formal process and an explanation for the failure to commence
such formal process with respect to such transfer before the
date of the report.
<all>