[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1303 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                S. 1303

To encourage the integration of the People's Republic of China into the 
 world economy, ensure United States trade interests, and establish a 
strategic working relationship with the People's Republic of China as a 
               responsible member of the world community.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 21, 1997

 Mr. Lieberman (for himself, Mr. Hagel, Mr. Kerrey, and Mr. Murkowski) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To encourage the integration of the People's Republic of China into the 
 world economy, ensure United States trade interests, and establish a 
strategic working relationship with the People's Republic of China as a 
               responsible member of the world community.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``United States-
China Relations Act of 1997''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Declaration of policy.
Sec. 3. Definitions.
                    TITLE I--ECONOMIC NORMALIZATION

                     Subtitle A--General Provisions

Sec. 101. Congressional findings.
Sec. 102. Statements of policy.
Sec. 103. Reports to Congress.
Sec. 104. Bilateral economic relations.
Sec. 105. Multilateral economic relations.
Sec. 106. Use of funds for commercial and consular presence.
    Subtitle B--United States-China Trade and Investment Commission

Sec. 111. United States-China Trade and Investment Commission.
Sec. 112. Study and report.
Sec. 113. Powers of the Commission.
Sec. 114. Staff and consultants.
Sec. 115. Termination.
Sec. 116. Investment treatment for United States business.
                     TITLE II--STRATEGIC RELATIONS

Sec. 201. Congressional findings.
Sec. 202. Statements of policy.
Sec. 203. Reports to Congress.
Sec. 204. Bilateral strategic relations.
Sec. 205. Multilateral strategic relations.
Sec. 206. Enforcement of the Iran-Iraq Non-Proliferation Act.
                        TITLE III--HUMAN RIGHTS

                     Subtitle A--General Provisions

Sec. 301. Congressional findings.
Sec. 302. Statement of policy.
Sec. 303. Radio Free Asia; National Endowment for Democracy.
Sec. 304. Multilateral human rights.
                 Subtitle B--Human Relations Commission

Sec. 311. Human Relations Commission.
Sec. 312. Functions of the Commission.
Sec. 313. Staff.
Sec. 314. Termination.

SEC. 2. DECLARATION OF POLICY.

    It is the policy of the United States to--
            (1) encourage the integration of the People's Republic of 
        China into the global economy and community of nations;
            (2) craft an economic, political, and strategic 
        relationship with the People's Republic of China which builds 
        mutual trust and encourages transparency;
            (3) cooperate with the People's Republic of China on 
        regional and global political and strategic issues, and to 
        encourage the constructive interdependence of the People's 
        Republic of China in the Asia Pacific region;
            (4) recognize the sovereignty of the People's Republic of 
        China, and oppose any unilateral change in the status quo of 
        ``one China policy'', especially with respect to the Republic 
        of China on Taiwan;
            (5) continue a close relationship with the Special 
        Administrative Region of Hong Kong; and
            (6) enforce the Hong Kong Policy Act and any other 
        provision that relates to the protection of civil liberties and 
        the rule of law in Hong Kong.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Trade representative.--The term ``Trade 
        Representative'' means the United States Trade Representative.
            (2) World trade organization.--The term ``World Trade 
        Organization'' means the organization established pursuant to 
        the WTO Agreement.
            (3) WTO agreement.--The term ``WTO Agreement'' means the 
        Agreement Establishing The World Trade Organization entered 
        into on April 15, 1994.

                    TITLE I--ECONOMIC NORMALIZATION

                     Subtitle A--General Provisions

SEC. 101. CONGRESSIONAL FINDINGS.

    Congress makes the following findings:
            (1) The People's Republic of China is the world's tenth 
        largest trading nation and the United States' fifth largest 
        trading partner. United States exports to the People's Republic 
        of China have quadrupled over the past decade. At least 170,000 
        Americans owe their jobs to United States exports to the 
        People's Republic of China. Jobs related to exported goods, on 
        average, pay 13 to 16 percent more than nonexport related jobs.
            (2) The United States is the People's Republic of China's 
        largest export market. United States imports from the People's 
        Republic of China were nearly $51,500,000,000 in 1996 (or 
        nearly 25 percent of the exports of the People's Republic of 
        China). By contrast, United States exports of goods to the 
        People's Republic of China stood at only $12,000,000,000. While 
        the large trade deficit with the People's Republic of China is 
        the result of many factors, the People's Republic of China's 
        multiple, overlapping barriers to trade and investments are a 
        serious concern.
            (3) In the coming decade, the rapid economic expansion of 
        the People's Republic of China will exert a powerful influence 
        on the global economy. In order to be constructive, the 
        emergence of the People's Republic of China as an economic 
        power should be compatible with the existing multilateral 
        economic regime.
            (4) Since the bilateral Memorandum of Understanding between 
        the United States and the People's Republic of China signed in 
        October 1992, the People's Republic of China has eliminated 
        import restrictions on more than 1,000 tariff categories and 
        opened its market to computers, heavy machinery, and 
        pharmaceutical products.
            (5) However, the People's Republic of China still maintains 
        many barriers to the sale of foreign products and United States 
        firms still do not have access comparable to that which the 
        People's Republic of China enjoys in the United States. Sectors 
        such as agriculture, telecommunications, insurance, 
        distribution, audio-visual, advertising, and maintenance and 
        repair need to be opened to international trade.
            (6) Since 1995, the People's Republic of China has made 
        significant progress in concluding agreements in the 
        enforcement of intellectual property rights.
            (7) Despite significant improvements in enforcement, 
        serious problems still remain. Piracy of computer software 
        remains at high levels. While market access for copyrighted 
        products has improved, further improvement is required for 
        legitimate products to be available to meet market demand.

SEC. 102. STATEMENTS OF POLICY.

    It is the policy of the United States--
            (1) to encourage a fair and equitable economic relationship 
        that ensures equal market access between the United States and 
        the People's Republic of China;
            (2) to support the accession of the People's Republic of 
        China to the World Trade Organization on commercially viable 
        terms, which include commitments on opening up the agricultural 
        market of the People's Republic of China, concessions on 
        trading rights, lower tariffs, access to distribution networks, 
        and elimination of import inhibiting standards;
            (3) for importers of goods or services to affirm that such 
        products or services were not manufactured or procured in a 
        manner inconsistent with United States law or otherwise 
        incompatible with the values of the United States; and
            (4) for United States persons conducting business in the 
        People's Republic of China to refrain from using oppressive 
        instrumentalities of the state to oppose workers' efforts to 
        organize.

SEC. 103. REPORTS TO CONGRESS.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, and annually thereafter, the Trade 
Representative shall, in consultation with the International Trade 
Commission and the Department of Commerce, prepare and submit to 
Congress a study showing the economic benefits that existing bilateral 
trade agreements between the United States and the People's Republic of 
China have on United States employment, balance of trade, and 
international competitiveness.
    (b) Military Activities.--
            (1) In general.--The Secretary of State, in consultation 
        with the Secretary of Defense, the Secretary of Commerce, and 
        the head of any other appropriate intelligence agencies, shall, 
        not later than 180 days after the date of enactment of this 
        Act, and annually thereafter, prepare and submit to Congress a 
        report on the commercial activities of the People's Liberation 
        Army in the United States and the People's Republic of China. 
        The report shall highlight the activities that provide off-
        budget revenue for military modernization.
            (2) Confidentiality.--The Secretary of Defense, the 
        Secretary of Commerce, and the head of any intelligence agency 
        may separately submit information regarding the report to 
        Congress in confidence if such Secretary or agency head 
        considers confidentiality appropriate.

SEC. 104. BILATERAL ECONOMIC RELATIONS.

    (a) Investment Treaty.--Not later than 180 days after the date of 
enactment of this Act, the Trade Representative shall assess the 
feasibility of entering into a bilateral investment treaty with the 
People's Republic of China and shall advise Congress of the results of 
the assessment.
    (b) Tax Treaty.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of the Treasury shall assess the 
feasibility of entering into a bilateral tax treaty with the People's 
Republic of China and shall advise Congress of the results of the 
assessment.
    (c) Report on Joint Commissions.--
            (1) Review.--Not later than 180 days after the date of 
        enactment of this Act, and annually thereafter, the President 
        shall review the functions and objectives of each United 
        States-China Joint Commission and shall submit for 
        congressional review a program plan that identifies the 
        objectives of each Commission and the resources required to 
        achieve those objectives.
            (2) Joint commissions.--For purposes of this subsection, 
        the term ``United States-China Joint Commission'' means--
                    (A) the United States-China Joint Commission on 
                Commerce and Trade,
                    (B) the United States-China Joint Economic 
                Commission, and
                    (C) the United States-China Joint Commission on 
                Science and Technology.

SEC. 105. MULTILATERAL ECONOMIC RELATIONS.

    (a) Statement of Purpose.--It is the purpose of this section--
            (1) to authorize the President of the United States to 
        raise tariffs on imports from the People's Republic of China to 
        tariff levels in effect on December 31, 1994, if the President 
        determines, upon the expiration of the 1979 United States 
        bilateral agreement with the People's Republic of China, that 
        the People's Republic of China is either denying adequate trade 
        benefits to the United States or not taking steps to become a 
        full member of the World Trade Organization;
            (2) to provide a significant incentive for the People's 
        Republic of China to gain admission to the World Trade 
        Organization by eliminating the annual review of China's trade 
        status after it commits to a commercially acceptable protocol 
        and is admitted to the World Trade Organization; and
            (3) therefore to enhance the ability of the President of 
        the United States to negotiate a commercially acceptable World 
        Trade Organization protocol with the People's Republic of 
        China.
    (b) Snap-Back Mechanism.--
            (1) Determination with respect to the people's republic of 
        china.--Upon the expiration of the 1979 United States bilateral 
        agreement with the People's Republic of China, the President 
        shall, after consulting with the appropriate congressional 
        committees, determine whether or not the People's Republic of 
        China is--
                    (A) according adequate trade benefits to the United 
                States, including substantially equal competitive 
                opportunities for the commerce of the United States; 
                and
                    (B) taking adequate steps or making significant 
                proposals to become a WTO member.
            (2) Submission of findings.--Not later than 180 days after 
        the expiration of the 1979 United States bilateral agreement 
        with the People's Republic of China, the President shall submit 
        to the appropriate congressional committees a report setting 
        forth his determinations under subparagraphs (A) and (B) of 
        paragraph (1), with a rationale for each determination.
            (3) Tariff increase.--
                    (A) Imposition of increase.--If the President 
                determines either--
                            (i) under subparagraph (A) of paragraph (1) 
                        that the People's Republic of China is not 
                        according adequate trade benefits to the United 
                        States, or
                            (ii) under subparagraph (B) of paragraph 
                        (1) that the People's Republic of China is not 
                        taking adequate steps or making significant 
                        proposals to become a WTO member,
                then the President shall proclaim, within 180 days 
                after the date of that determination, an increase in 
                the rate of duty with respect to 1 or more products of 
                that country to not more than the column 1 rate of duty 
                under the Harmonized Tariff Schedule of the United 
                States that applied to the article or articles on 
                December 31, 1994.
                    (B) Termination of increase.--The President shall 
                terminate any increase in the rate of duty imposed 
                under subparagraph (A) on the earlier of--
                            (i) the date on which the People's Republic 
                        of China becomes a WTO member; or
                            (ii) the date on which the President 
                        proclaims that--
                                    (I) the People's Republic of China 
                                is according adequate trade benefits to 
                                the United States, including 
                                substantially equal competitive 
                                opportunities for the commerce of the 
                                United States; and
                                    (II) the People's Republic of China 
                                is taking adequate steps or making 
                                significant proposals to become a WTO 
                                member.
                    (C) Modification of tariff.--The President may 
                modify any increase in the rate of duty imposed under 
                subparagraph (A) if the President notifies the 
                appropriate congressional committees of the 
                modification and the reasons therefor, except that--
                            (i) the modification may not result in a 
                        rate of duty higher than that permitted under 
                        subparagraph (A); and
                            (ii) the authority of this subparagraph may 
                        not be used to terminate an increase in the 
                        rate of duty imposed under subparagraph (A).
    (c) Accession to the World Trade Organization.--On the date on 
which the People's Republic of China becomes a WTO member, the 
provisions of title IV of the Trade Act of 1974 shall cease to apply to 
that country, and nondiscriminatory treatment shall apply to the 
products of that country.
    (d) Participation in OECD.--The President shall--
            (1) develop criteria for supporting the People's Republic 
        of China's participation in the Organization for Economic 
        Cooperation and Development and the G-7 meetings; and
            (2) when appropriate, initiate discussions with other 
        members of the Organization for Economic Cooperation and 
        Development and the G-7 regarding the People's Republic of 
        China's participation.
    (e) Definition.--As used in this section, the term ``WTO member'' 
has the meaning given that term in section 2(10) of the Uruguay Round 
Agreements Act (19 U.S.C. 3501(10)).

SEC. 106. USE OF FUNDS FOR COMMERCIAL AND CONSULAR PRESENCE.

    Of the amounts authorized to be appropriated to the Department of 
State under the appropriations account entitled ``Administration of 
Foreign Affairs'' and of the amounts appropriated to the Department of 
Commerce for the United States and Foreign Commercial Service, 
$25,000,000 for fiscal year 1999, and $75,000,000 for fiscal year 2000, 
may be used to strengthen and expand the United States consular and 
commercial presence in the People's Republic of China to additional 
cities. The President, through the Director of the Office of Management 
and Budget, shall determine the allocation of funds to be used in any 
fiscal year to carry out the provisions of this section.

    Subtitle B--United States-China Trade and Investment Commission

SEC. 111. UNITED STATES-CHINA TRADE AND INVESTMENT COMMISSION.

    (a)  In General.--There is established a United States-China Trade 
and Investment Commission (referred to in this title as the 
``Commission'').
    (b) Membership.--
            (1) Composition.--The Commission shall be bipartisan and 
        composed of 17 members, including--
                    (A) 3 individuals appointed by the President from 
                the executive branch of the government;
                    (B) 2 individuals appointed by the President pro 
                tempore of the Senate, upon the recommendation of the 
                majority and minority leaders of the Senate;
                    (C) 2 individuals appointed by the Speaker of the 
                House of Representatives, in consultation with the 
                minority leader of the House of Representatives;
                    (D) 7 individuals from private business appointed 
                by the Secretary of Commerce; and
                    (E) 3 individuals from nonprofit organizations 
                appointed by the Secretary of Commerce.
            (2) Appointment.--The members of the Commission shall be 
        appointed not later than 6 months after the date of enactment 
        of this Act.
    (c) Chairperson.--The Secretary of Commerce shall select a 
Chairperson from among the private business members.
    (d) Term of Office.--Members shall be appointed for the life of the 
Commission.
    (e) Vacancies.--Any vacancy occurring in the membership of the 
Commission shall be filled in the same manner as the original 
appointment for the position being vacated. The vacancy shall not 
affect the power of the remaining members to execute the duties of the 
Commission.
    (f) Compensation and Expenses.--
            (1) Compensation.--Each member of the Commission who is not 
        an employee of the Federal Government shall receive 
        compensation at the daily equivalent of the rate specified for 
        level V of the Executive Schedule under section 5316 of title 
        5, United States Code, for each day the member is engaged in 
        the performance of duties for the Commission, including 
        attendance at meetings and conferences of the Commission, and 
        travel to conduct the duties of the Commission.
            (2) Travel expenses.--Each member of the Commission shall 
        receive travel expenses, including per diem in lieu of 
        subsistence, at rates authorized for employees of agencies 
        under subchapter I of chapter 57 of title 5, United States 
        Code, for each day the member is engaged in the performance of 
        duties away from the home or regular place of business of the 
        member.

SEC. 112. STUDY AND REPORT.

    (a) Study.--The Commission shall conduct a study of--
            (1) business practices employed by United States and 
        foreign persons conducting business in the People's Republic of 
        China;
            (2) human rights, labor, and environmental conditions in 
        each province of the People's Republic of China based on 
        criteria set forth in title IV of the Foreign Assistance Act of 
        1961 (22 U.S.C. 2191 et seq.) relating to insurance, financing, 
        guarantees, and reinsurance by the Overseas Private Investment 
        Corporation;
            (3) other circumstances associated with the development of 
        rule of law and civil society in the People's Republic of 
        China;
            (4) opportunities for bilateral cooperation for improving 
        ecosystem management and pollution control, and for integrating 
        policies that have environmental impact in the People's 
        Republic of China; and
            (5) opportunities for developing voluntary environmental 
        guidelines for industrial suppliers located in the People's 
        Republic of China, including the implementation of ISO 14000 
        environmental management standards of the International 
        Organization of Standards.
    (b) Report.--Not later than 12 months after the date of enactment 
of this Act, and annually thereafter, the Commission shall prepare and 
submit to the President and the appropriate committees of Congress a 
written report containing--
            (1) the findings and conclusions of the Commission 
        resulting from the study conducted under subsection (a);
            (2) the recommendations of the Commission, based on the 
        findings and conclusions described in paragraph (1), for--
                    (A) improving opportunities for United States 
                business in the People's Republic of China; and
                    (B) developing bilateral cooperation between the 
                United States and the People's Republic of China 
                relating to labor and environment; and
            (3) a list of provinces in the People's Republic of China 
        that meet the criteria of the Overseas Private Investment 
        Corporation for insurance, financing, guarantees, and 
        reinsurance described in subsection (a)(2).
    (c) Appropriate Committees.--For purposes of this section, the term 
``appropriate committees'' means the Committees on Finance and Foreign 
Relations of the Senate and the Committees on Ways and Means and 
International Relations of the House of Representatives.

SEC. 113. POWERS OF THE COMMISSION.

    (a) In General.--The Commission is authorized to--
            (1) hold such hearings and sit and act at such times;
            (2) take such testimony;
            (3) have such printing and binding done;
            (4) enter into such contracts and other arrangements;
            (5) make such expenditures; and
            (6) take such other actions;
as the Commission may determine to be necessary to carry out the duties 
of the Commission.
    (b) Obtaining Information From Federal Agencies.--The Commission 
may secure directly from any Federal agency such information as the 
Commission may require to carry out its duties.
    (c) Gifts and Donations.--The Commission may accept, use, and 
dispose of gifts or donations of property in order to carry out the 
duties of the Commission.
    (d) Use of Mail.--The Commission may use the United States mails in 
the same manner and under the same conditions as Federal agencies.

SEC. 114. STAFF AND CONSULTANTS.

    (a) Staff.--
            (1) Appointment and compensation.--The Commission may 
        appoint and determine the compensation of such staff as the 
        Commission determines to be necessary to carry out the duties 
        of the Commission.
            (2) Limitations.--The rate of compensation for each staff 
        member shall not exceed the daily equivalent of the rate 
        specified for level V of the Executive Schedule under section 
        5316 of title 5, United States Code, for each day the staff 
        member is engaged in the performance of duties for the 
        Commission. The Commission may otherwise appoint and determine 
        the compensation of staff without regard to the provisions of 
        title 5, United States Code, that govern appointments in the 
        competitive service, and the provisions of chapter 51 and 
        subchapter III of chapter 53 of title 5, United States Code, 
        that relate to classification and General Schedule pay rates.
    (b) Experts and Consultants.--The Chairperson of the Commission may 
obtain such temporary and intermittent services of experts and 
consultants and compensate the experts and consultants in accordance 
with section 3109(b) of title 5, United States Code, as the Commission 
determines to be necessary to carry out the duties of the Commission.
    (c) Detail of Federal Employees.--On the request of the Chairperson 
of the Commission, the head of any Federal agency shall detail, without 
reimbursement, any of the personnel of the agency to the Commission to 
assist the Commission in carrying out its duties. Any detail shall not 
interrupt or otherwise affect the civil service status or privileges of 
the Federal employee.
    (d) Technical Assistance.--On the request of the Chairperson of the 
Commission, the head of a Federal agency shall provide such technical 
assistance to the Commission as the Commission determines to be 
necessary to carry out its duties.

SEC. 115. TERMINATION.

    The Commission shall terminate on the date that is 2 years after 
the date of enactment of this Act.

SEC. 116. INVESTMENT TREATMENT FOR UNITED STATES BUSINESS.

    (a) In General.--The Export-Import Bank, the Overseas Private 
Investment Corporation, and other United States agencies shall take 
into consideration the study and report conducted under this subtitle 
in funding any transaction with the People's Republic of China.
    (b) Amendment to Export-Import Bank Act.--Section 2(b)(2)(D)(i) of 
the Export-Import Bank Act (12 U.S.C. 635(b)(2)(D)(i)) is amended by 
adding at the end the following new sentence: ``Subparagraph (A) shall 
not apply to guarantees, insurance, or extensions of credit by the Bank 
to a province of the People's Republic of China if the United States-
China Trade and Investment Commission determines that the province 
meets the criteria for insurance, financing, guarantees, and 
reinsurance of the Overseas Private Investment Corporation set forth in 
title IV of the Foreign Assistance Act of 1961.''.
    (c) Overseas Private Investment Corporation.--Section 239 of the 
Foreign Assistance Act of 1961 (22 U.S.C 2199) is amended by adding at 
the end the following new subsection:
    ``(l) Notwithstanding any other provision of law, the Corporation 
may insure, reinsure, guarantee, or finance a project in the People's 
Republic of China if the United States-China Trade and Investment 
Commission determines that the province in which such project is 
located meets the criteria for insurance, financing, guarantees, and 
reinsurance set forth in this title.''.

                     TITLE II--STRATEGIC RELATIONS

SEC. 201. CONGRESSIONAL FINDINGS.

    Congress makes the following findings:
            (1) The United States and the People's Republic of China 
        share mutual security interests in the Asia Pacific region 
        (including the Korean peninsula) as well as other areas of the 
        world such as the Middle East.
            (2) While the People's Liberation Army poses no direct 
        military threat to the United States now, its sales of weapons 
        and weapons technology to sponsors of terrorism, such as Iran, 
        endangers the regional stability and global interests of the 
        United States.
            (3) The People's Liberation Army is engaging in a military 
        buildup and an aggressive military modernization program, for 
        undisclosed purposes. In fact since 1992, military spending by 
        the People's Republic of China has doubled.
            (4) The People's Liberation Army is engaging in commercial 
        activities both at home and abroad. The revenues from these 
        commercial activities are used for military expenditures and 
        obscure actual military expenditures by the People's Republic 
        of China.
            (5) In March 1996, the People's Republic of China 
        demonstrated its capacity to blockade the international 
        shipping lanes of the Taiwan Strait and the air space over 
        Taiwan by the repeated launches of M-9 ballistic missiles in 
        the South China Sea.
            (6) In May 1996, Poly Technologies, a People's Liberation 
        Army enterprise, and Norinco, a Chinese civilian defense 
        company, attempted to smuggle 2,000 AK-47's into Oakland, 
        California and offered to sell to Federal undercover agents 
        300,000 machine guns with silencers, 66mm mortars, hand 
        grenades, and Red Parakeet surface-to-air missiles.
            (7) The People's Liberation Army's buildup, modernization, 
        and economic activities may pose a regional threat and a threat 
        to broader United States interests in the future unless greater 
        efforts are made to increase communication and transparency of 
        process.

SEC. 202. STATEMENTS OF POLICY.

    It is the policy of the United States--
            (1) to encourage the political and military integration of 
        the People's Republic of China into the Asia Pacific region and 
        the larger global community of nations;
            (2) to maintain a strong United States presence in the Asia 
        Pacific region and to encourage cooperation between the United 
        States, the People's Republic of China, and other nations;
            (3) to encourage transparency in military funding in the 
        People's Republic of China to the greatest extent possible; and
            (4) to engage in confidence building measures between the 
        United States and the People's Republic of China in order to 
        reduce the risk of unintended conflict.

SEC. 203. REPORTS TO CONGRESS.

    Not later than 180 days after the date of enactment of this Act, 
the Secretaries of State, Defense, and Commerce, along with the heads 
of other intelligence agencies, shall provide Congress with--
            (1) a report analyzing the effectiveness of existing 
        weapons proliferation export controls and sanctions relating to 
        the People's Republic of China; and
            (2) a report describing economic, political, and military 
        espionage conducted by the People's Republic of China against 
        the United States.
The Secretaries of State, Defense, and Commerce, and the head of any 
other intelligence agency may separately submit any information 
regarding the reports to Congress in confidence if such Secretary or 
agency head considers confidentiality appropriate.

SEC. 204. BILATERAL STRATEGIC RELATIONS.

    (a) Sense of the Senate.--It is the sense of the Senate that the 
President should continue and expand contact and exchanges between 
national security personnel from the United States and of the People's 
Republic of China.
    (b) Energy Bilateral.--The President shall take steps to establish 
a bilateral committee with the People's Republic of China in order to 
begin a dialogue relating to the maintenance of stability in regions 
where there are energy resources of mutual interest to the United 
States and the People's Republic of China.
    (c) Food Bilateral.--The President shall take steps to establish a 
bilateral committee with the People's Republic of China in order to 
begin a dialogue relating to--
            (1) common interests in the People's Republic of China's 
        securing a stable and adequate supply of food, and
            (2) the interests of the United States as a supplier of 
        food to the People's Republic of China.

SEC. 205. MULTILATERAL STRATEGIC RELATIONS.

    The President shall take steps to establish a multilateral risk 
reduction protocol with the People's Republic of China and other 
governments in East Asia. The protocol shall provide policies and 
procedures that include--
            (1) establishing a line of direct communication between 
        Washington and the People's Republic of China; and
            (2) developing a protocol for naval encounters in 
        international waters.

SEC. 206. ENFORCEMENT OF THE IRAN-IRAQ NON-PROLIFERATION ACT.

    It is the sense of the Senate that the security and stability of 
the Near East is threatened by any augmentation of weapons inventories 
by Iran and Iraq and the President should vigilantly enforce the 
provisions of the Iran-Iraq Arms Non-Proliferation Act of 1992.

                        TITLE III--HUMAN RIGHTS

                     Subtitle A--General Provisions

SEC. 301. CONGRESSIONAL FINDINGS.

    Congress makes the following findings:
            (1) Congress concurs in the following conclusions of the 
        Department of State regarding human rights in the People's 
        Republic of China:
                    (A) The Government of the People's Republic of 
                China has ``continued to commit widespread and well 
                documented human rights abuses, in violation of 
                internationally accepted norms, stemming from the 
                authorities intolerance of dissent, fear of unrest, and 
                the absence and inadequacy of laws protecting basic 
                freedoms.''
                    (B) Nonapproved religious groups, including 
                Protestant and Catholic groups, experienced intensified 
                repression.
                    (C) Overall in 1996, the authorities stepped up 
                efforts to cut off expressions of protest or criticism. 
                No dissidents were known to be active at year's end.
            (2) Despite public assurances by the People's Republic of 
        China that it would abide by the principles of the Universal 
        Declaration of Human Rights and despite the United Nations 
        charter requirements that all members promote respect for and 
        observe basic human rights, the Government of the People's 
        Republic of China continues to place severe restrictions on 
        religious expression and practice.

SEC. 302. STATEMENT OF POLICY.

    It is the policy of the United States--
            (1) to encourage the People's Republic of China to adhere 
        to internationally accepted norms for the rule of law, human 
        rights, and worker rights; and
            (2) to develop a consistent multilateral response to the 
        record of the People's Republic of China on human rights and 
        worker rights.

SEC. 303. RADIO FREE ASIA; NATIONAL ENDOWMENT FOR DEMOCRACY.

    (a) Radio Free Asia.--The President shall direct the Director of 
the United States Information Agency and the Board of Broadcasting 
Governors to increase the broadcast hours of the Voice of America and 
Radio Free Asia to the People's Republic of China and to broadcast to 
the People's Republic of China in multiple Chinese dialects.
    (b) National Endowment for Democracy.--In addition to such sums as 
are otherwise authorized to be appropriated for fiscal year 1998 for 
grants to the National Endowment for Democracy, there is authorized to 
be appropriated for fiscal year 1998, $1,000,000 for grants to the 
National Endowment for Democracy which shall be available only for 
purposes of programs relating to the People's Republic of China.

SEC. 304. MULTILATERAL HUMAN RIGHTS.

    In the absence of significant progress in improving human rights in 
the People's Republic of China, the President shall direct the United 
States Permanent Representative to the United Nations to develop and 
implement a strategy to ensure that there is a debate and discussion 
every year on the human rights record of the People's Republic of China 
before the United Nations Commission on Human Rights.

                 Subtitle B--Human Relations Commission

SEC. 311. HUMAN RELATIONS COMMISSION.

    (a)  In General.--Not later than 6 months after the date of 
enactment of this Act, the President, in consultation with the majority 
and minority leaders of the Senate, the Speaker of the House of 
Representatives, and the minority leader of the House of 
Representatives, and appropriate representatives from the private 
sector, shall appoint a 12-member Human Relations Commission (referred 
to in this subtitle as the ``Commission'').
    (b) Membership.--
            (1) Composition.--The Commission shall be composed of--
                    (A) 4 individuals appointed from the executive 
                branch of the government;
                    (B) 4 individuals appointed from the legislative 
                branch of the government; and
                    (C) 4 individuals from the private sector.
    (c) Chairperson.--The Commission shall select a Chairperson from 
among its members.
    (d) Term of Office.--Members shall be appointed for the life of the 
Commission.
    (e) Vacancies.--Any vacancy occurring in the membership of the 
Commission shall be filled in the same manner as the original 
appointment for the position being vacated. The vacancy shall not 
affect the power of the remaining members to execute the duties of the 
Commission.
    (f) Compensation and Expenses.--
            (1) Compensation.--Each member of the Commission who is not 
        an employee of the Federal Government shall receive 
        compensation at the daily equivalent of the rate specified for 
        level V of the Executive Schedule under section 5316 of title 
        5, United States Code, for each day the member is engaged in 
        the performance of duties for the Commission, including 
        attendance at meetings and conferences of the Commission, and 
        travel to conduct the duties of the Commission.
            (2) Travel expenses.--Each member of the Commission shall 
        receive travel expenses, including per diem in lieu of 
        subsistence, at rates authorized for employees of agencies 
        under subchapter I of chapter 57 of title 5, United States 
        Code, for each day the member is engaged in the performance of 
        duties away from the home or regular place of business of the 
        member.

SEC. 312. FUNCTIONS OF THE COMMISSION.

    (a) In General.--The Commission shall perform the following 
functions:
            (1) Assess the status of human rights and worker rights in 
        the People's Republic of China based on the Universal 
        Declaration of Human Rights and internationally recognized 
        worker rights as defined in section 507(4) of the Trade Act of 
        1974.
            (2) Work to develop a bilateral commission between the 
        United States and the People's Republic of China on human 
        rights and worker rights.
            (3) Expand opportunities for the exchange between the 
        United States and the People's Republic of China of judges, 
        attorneys, religious leaders, customs officials, and members 
        and staff of the executive and legislative branches of 
        government.
            (4) Encourage overseas development assistance programs that 
        support the establishment of rule of law and civil society in 
        the People's Republic of China.
            (5) Identify opportunities for multilateral action on human 
        rights and worker rights, and rejuvenate initiatives in the 
        International Labor Organization relating to human rights and 
        worker rights.
    (b) Assessment of Human Rights and Worker Rights.--
            (1) In general.--In assessing the status of human rights 
        and worker rights required by subsection (a), the Commission 
        shall establish a Prisoner Information Registry that contains 
        the information described in paragraph (2) with respect to 
        people detained in the People's Republic of China as political 
        prisoners, religious prisoners, and prisoners of conscience.
            (2) Registry information.--The Prisoner Information 
        Registry shall contain the following information with respect 
        to the prisoners described in paragraph (1):
                    (A) The charges against each prisoner.
                    (B) A description of the judicial process or 
                administrative action taken with respect to each 
                prisoner.
                    (C) The length of incarceration, incidents of 
                torture, and use of forced labor with respect to each 
                prisoner.
                    (D) The physical condition and general health of 
                each prisoner.
                    (E) Any other information relating to the general 
                condition of each prisoner that the Commission 
                considers to be relevant.
            (3) Report and recommendations.--
                    (A) In general.--Not later than 1 year after the 
                first meeting of the Commission, and annually 
                thereafter, the Commission shall report to Congress and 
                the President the results of the assessment conducted 
                under this subsection.
                    (B) Recommendation.--If the Commission determines 
                that the People's Republic of China is not making 
                progress in improving the status of human rights and 
                worker rights within 2 years after the date of the 
                first meeting of the Commission, the Commission shall 
                recommend to the President that the President 
                strengthen United States policies intended to improve 
                the status of human rights and worker rights with 
                respect to the People's Republic of China as the 
                Commission determines to be appropriate.

SEC. 313. STAFF.

    (a) Detail of Federal Employees.--On the request of the Chairperson 
of the Commission, the head of any Federal agency shall detail, without 
reimbursement, any of the personnel of the agency to the Commission to 
assist the Commission in carrying out its duties. Any detail shall not 
interrupt or otherwise affect the civil service status or privileges of 
the Federal employee.
    (b) Technical Assistance.--On the request of the Chairperson of the 
Commission, the head of a Federal agency shall provide such technical 
assistance to the Commission as the Commission determines to be 
necessary to carry out its duties.

SEC. 314. TERMINATION.

    The Commission shall terminate on the day that is 3 years after the 
date of the Commission's first meeting.
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