[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. Con. Res. 78 Introduced in Senate (IS)]







110th CONGRESS
  2d Session
S. CON. RES. 78

 Expressing the sense of Congress that the People's Republic of China 
  and all enterprises owned or controlled by the People's Republic of 
 China should make proper disclosures with the Securities and Exchange 
  Commission regarding the selective default status of certain bonds.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 28, 2008

  Mr. Inhofe submitted the following concurrent resolution; which was 
             referred to the Committee on Foreign Relations

_______________________________________________________________________

                         CONCURRENT RESOLUTION


 
 Expressing the sense of Congress that the People's Republic of China 
  and all enterprises owned or controlled by the People's Republic of 
 China should make proper disclosures with the Securities and Exchange 
  Commission regarding the selective default status of certain bonds.

Whereas sovereign debt obligations (in this resolution referred to as ``bonds'') 
        of the Government of the People's Republic of China were offered and 
        sold in the United States capital markets;
Whereas the bonds constitute full faith and credit sovereign obligations of the 
        internationally recognized Government of the People's Republic of China;
Whereas the People's Republic of China subsequently defaulted on the bonds;
Whereas the United States Foreign Claims Settlement Commission determined that 
        the bonds constitute an unpaid general obligation of the Government of 
        the People's Republic of China;
Whereas under the successor government doctrine of settled international law 
        (establishing the continuity of obligations among successor 
        governments), the repayment obligation for the bonds is the obligation 
        of the Government of the People's Republic of China;
Whereas the Government of the People's Republic of China has been duly notified 
        by representatives of the affiliated United States creditors of the 
        demand for repayment of the bonds;
Whereas the Government of the People's Republic of China continues to refuse to 
        repay the bonds held by United States citizens and has officially 
        repudiated the debts; a clear violation of United States law, 
        international law, rules and regulations of the World Bank and the 
        International Monetary Fund, and the United Nations Charter;
Whereas the Government of the People's Republic of China honored repayment of 
        the bonds held by British citizens while rejecting the claims of United 
        States citizens;
Whereas the Government of the People's Republic of China, its state-owned 
        enterprises, and other entities controlled by the People's Republic of 
        China continue to enjoy open and unfettered access to the United States 
        capital markets, while the Government of the People's Republic of China 
        continues to reject the lawful claims of United States citizens;
Whereas the sales of securities in the United States capital markets issued by 
        Chinese entities, including the Government of the People's Republic of 
        China and its state-owned enterprises, fail to disclose both the 
        existence of the defaulted debt of the Government of the People's 
        Republic of China and the continued evasion of repayment of the bonds, 
        the discriminatory treatment of United States citizens, and the People's 
        Republic of China's repudiation of official debt;
Whereas the wrongful actions of the Government of the People's Republic of China 
        are improperly concealed by the continuing publication of artificial 
        ``investment grade'' sovereign credit rating classifications assigned to 
        the Chinese government by the 3 primary Nationally Recognized 
        Statistical Rating Organizations (NRSROs) and this concealment fails to 
        conform to the published definitions of those Organizations;
Whereas the continued publication of artificial ``investment grade'' sovereign 
        credit rating classifications assigned to the Government of the People's 
        Republic of China provides an incentive to the Chinese government to 
        avoid a negotiated settlement with United States citizens regarding 
        China's default on its sovereign debt obligations;
Whereas the lack of transparency concerning the selective default of the 
        Government of the People's Republic of China poses a material risk to 
        the investing public and threatens the integrity of the United States 
        capital markets; and
Whereas to provide relief to United States bondholders, restore transparency, 
        uphold the rule of law, and affirm the validity of public debt 
        contracts: Now, therefore, be it
    Resolved by the Senate (the House of Representatives concurring), 
That it is the sense of Congress that the People's Republic of China 
and its government-owned and controlled enterprises should be required 
to properly disclose material information concerning the selective 
default status of these bonds in all prospectuses and filings with the 
Securities and Exchange Commission.
                                 <all>