117 HR 3344 : Transatlantic Telecommunications Security Act
U.S. House of Representatives
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IIB
117th CONGRESS
2d Session
H. R. 3344
IN THE SENATE OF THE UNITED STATES
April 28, 2022
Received; read twice and referred to the Committee on Foreign Relations
AN ACT
To prioritize the efforts of and enhance coordination among United States agencies to encourage countries in Central and Eastern Europe to improve the security of their telecommunications networks, and for other purposes.
1.

Short title
This Act may be cited as the “Transatlantic Telecommunications Security Act”.
2.

Sense of Congress; statement of policy
(a)

Sense of Congress
It is the sense of Congress that—
(1)
fifth and future generation’s telecommunication networks in allied and partner countries based on common, secure, transparent, democratic standards have the potential to increase cultural, political, and economic exchanges leading to mutual job creation, closer citizen relations, and stronger democratic institutions;
(2)
Russia’s unprovoked, unjustified, and illegal invasion of Ukraine and the People’s Republic of China’s tacit support for Russian Federation’s actions demonstrate the importance of secure telecommunication infrastructure in Central and Eastern European nations;
(3)
the United States has national security and economic interests in assisting Central and Eastern European countries to improve the security of their telecommunication networks by reducing dependence on covered telecommunication equipment or services that are often offered with predatory economic inducements and replacing them with secure telecommunication equipment or services;
(4)
China’s Belt and Road Initiative and the 17+1 Initiative seek to undermine Central and Eastern Europe’s infrastructure resilience and sovereignty through predatory inducements from state-linked providers of telecommunication equipment or services such as Huawei Technologies Company and ZTE Corporation;
(5)
China’s 2017 National Intelligence Law obligates Chinese businesses to fully cooperate with state intelligence work, and thereby compromises the integrity of any network that utilizes equipment from Chinese companies because providers could be forced to hand over sensitive data or shut down networks at the command of China;
(6)
Russia’s campaign to elect a Russian national, who is a former Huawei Technologies Company executive, to serve as the Secretary-General of the International Telecommunication Union (ITU) is indicative of China and Russia’s efforts to use international organizations to promote their interests and their malign influence;
(7)
at global fora such as the ITU, the United States Government should actively support candidates that espouse democratic values, internet freedoms, and secure telecommunication networks;
(8)
the United States International Development Finance Corporation’s development priorities, as described in section 1412 of the Better Utilization of Investments Leading to Development Act of 2018, properly includes a focus on less developed countries;
(9)
the United States should assemble a coalition of democratic and like-minded allies and partners to counter the rise of global malign actors such as China and Russia and build resilience in Central and Eastern Europe against malign influences; and
(10)
in order to ensure robust military coordination and interoperability with the North Atlantic Treaty Organization (NATO) and transatlantic allies and partners, the United States should ensure that allies and partners’ telecommunication networks are secure and free from potential threats in accordance with the 2019 NATO London Declaration.
(b)

Statement of policy
It is the policy of the United States—
(1)
to strengthen the transatlantic alliance based on shared values in the face of rising malign influence from the People’s Republic of China and the Russian Federation, countries that seek to undermine democratic institutions and values;
(2)
to encourage public and private sector investment in European telecommunication infrastructure projects to ensure secure telecommunication and to catalyze economic advancement through the highest standards of transparency, accessibility, and competition;
(3)
to provide economically feasible alternatives to financing from providers of covered telecommunication equipment or services;
(4)
to engage in diplomacy with European allies and partners to strengthen the United States and European private sector efforts to develop common telecommunication technology and industry standards, and in turn promote them globally;
(5)
to support the Three Seas Initiative organized by 12 Central and Eastern European countries of the European Union to increase infrastructure resiliency and reduce reliance on malign actors, including in the telecommunication space;
(6)
to enhance telecommunication security and freedom around the globe by engaging in elections at the ITU and promoting the candidacies of individuals that will promote democratic values, the rule of law, technological freedoms, and telecommunication security;
(7)
to support the people of Ukraine, Moldova, Georgia, and the Western Balkan countries in their desire for integration into Euro-Atlantic institutions and economies through enhanced cross-border telecommunication infrastructure connectivity; and
(8)
to ensure that frontline NATO allies have telecommunication services that cannot be controlled by China or Russia, especially considering Russia’s illegal and unjustifiable invasion of Ukraine.
3.

International Telecommunication Union Security Campaign Director
(a)

Appointment
Not later than 30 days after the date of the enactment of this Act, the Secretary of State shall appoint, from among existing personnel of the Department of State, an International Telecommunication Union Security Campaign Director (in this section referred to as the “Director”).
(b)

Duties
The Director shall—
(1)
lead efforts to promote candidates for elections at the International Telecommunication Union (ITU) who will support and defend democratic values, internet freedom, and telecommunication security;
(2)
coordinate with other officials of the Department of State, the Department of Commerce, the Federal Communications Commission, and other Federal departments and agencies to ensure efforts described in paragraph (1) are carried out in an organized, nimble, efficient, and effective manner;
(3)
work with stakeholders in the private sector to harmonize efforts and to galvanize focus on elections at the ITU;
(4)
use diplomatic tools of the Department of State to bolster support for candidates for elections at the ITU who will support and defend democratic values, internet freedom, and telecommunication security;
(5)
brief Congress regularly on the implementation of the duties described in paragraphs (1) through (4) and, if appropriate, on requests for additional legislative authority necessary to enhance telecommunication security and freedom around the globe as described in section 2(b)(6); and
(6)
report to the Assistant Secretary of State for International Organization Affairs regularly on development, progress, or setbacks with respect to support to the people of Ukraine, Moldova, Georgia, and the Western Balkan countries as described in section 2(b)(7).
(c)

Sunset
This section shall terminate on October 31, 2022.
4.

Prioritization of efforts and assistance for telecommunication infrastructure projects in Central and Eastern Europe
(a)

In general
In carrying out the policy described in section 2(b), the Secretary of State, in consultation with the Secretary of Commerce, the Chief Executive Officer of the United States International Development Finance Corporation, the Director of the Trade and Development Agency, the head of the Federal Communications Commission, and the heads of other relevant Federal departments and agencies, shall, as appropriate, prioritize and expedite the efforts of the Department of State and those departments and agencies in supporting the efforts of the European Commission and the governments of Central and Eastern European countries to improve the security of their telecommunication networks, including through providing diplomatic and political support to the European Commission and Central and Eastern European countries, as necessary—
(1)
to ensure European telecommunication networks are built securely, consistent with democratic values and principles such as privacy, including through early-stage project support and late-stage project support for the construction or improvement of telecommunication and related infrastructure;
(2)
to remove covered telecommunication equipment or services and replace such equipment or services with secure telecommunication equipment or services;
(3)
to support the development of telecommunication networks that are inclusive, transparent, economically viable, financially, environmentally, and socially sustainable, compliant with international standards, laws, and regulations, and supplied by providers of secure telecommunication equipment or services; and
(4)
to facilitate international coordination on cross-border telecommunication infrastructure construction and security standards to ensure cross-border telecommunications are secure.
(b)

Project selection
(1)

In general
The Secretary of State, the Chief Executive Officer of the United States International Development Finance Corporation, and the Director of the Trade and Development Agency shall jointly identify telecommunication infrastructure projects that would advance the United States national security and be appropriate for United States assistance under this section.
(2)

Project eligibility
A project is eligible for United States assistance under this section if—
(A)
the project—
(i)
improves telecommunication networks through either hard infrastructure, such as telecommunication lines, towers, antennas, or other equipment, or soft infrastructure, such as innovative software development or cloud services;
(ii)
is inclusive, transparent, economically viable, financially, environmentally, and socially sustainable, compliant with international standards, laws, and regulations, and supplied with secure telecommunication equipment or services solely by providers of secure telecommunication equipment or services; and
(iii)
does not use covered telecommunication equipment or services or removes covered telecommunication equipment or services and replaces such equipment or services with secure telecommunication equipment or services; and
(B)
the project is located in a covered country.
(3)

Preference
In selecting among projects that are eligible under paragraph (2), the heads of the Federal departments and agencies specified in subsection (a) shall give preference to projects that—
(A)
are located in Ukraine;
(B)
can attract funding from the private sector, an international financial institution, the government of the country in which the project will be carried out, or the European Commission;
(C)
have been designated as available for funding through the Three Seas Initiative Investment Fund;
(D)
are to be carried out in the Three Seas Initiative member nations;
(E)
are to be carried out in NATO member states that meet or are making progress toward meeting their commitments to upholding the rule of law and preserving democratic institutions in accordance with the preamble and Article 2 of the North Atlantic Treaty;
(F)
are to be carried out in NATO member states that meet or are making demonstrable progress toward meeting their defense spending commitments in accordance with the 2014 NATO Wales Summit Declaration; or
(G)
have the potential to advance United States economic interests.
(c)

Types of assistance
(1)

Diplomatic and political support
The Secretary of State shall provide diplomatic and political support to the covered countries, as necessary, including by using the diplomatic and political influence and expertise of the Department of State to build the capacity of covered countries to resolve any impediments to the development of projects selected under subsection (b).
(2)

International financial institutions support
The Secretary of State shall seek to encourage international financial institutions, including the European Bank for Reconstruction and Development, the European Investment Bank, and the International Monetary Fund, the Foreign, Commonwealth, and Development Office of the Government of the United Kingdom, the Agency for International Cooperation of the Government of Germany, and the Development Agency of the Government of France to invest in telecommunication infrastructure resilience in Central and Eastern Europe.
(3)

Early-stage project support
The Director of the Trade and Development Agency shall provide early-stage project support with respect to projects selected under subsection (b), as necessary.
(4)

Late-stage project support
The heads of the Federal departments and agencies specified in subsection (a) that provide late-stage project support shall do so, with respect to projects selected under subsection (b), as necessary.
(5)

United states international development finance corporation support
The United States International Development Finance Corporation is authorized to provide support for projects under this section in covered countries that are countries with upper-middle-income economies or high-income economies (as those terms are defined by the International Bank for Reconstruction and Development and the International Development Association (collectively referred to as the “World Bank”)), notwithstanding the restriction contained in section 1412(c)(2) of the Better Utilization of Investments Leading to Development Act of 2018 (22 U.S.C. 9612(c)(2)).
5.

Report
(a)

In general
Not later than 1 year after the date of the enactment of this Act, and annually thereafter for 5 years, the President shall submit to the appropriate congressional committees a report on the progress made in providing assistance for projects under section 4 that includes—
(1)
a description of the telecommunications infrastructure projects the United States has identified for such assistance; and
(2)
for each such project—
(A)
a description of the role of the United States in the project, including in early-stage project support and late-stage project support;
(B)
the amount and form of debt financing, equity financing, and insurance provided by the United States Government, the Three Seas Initiative Investment Fund, and international financial institutions, including the European Bank for Reconstruction and Development, the European Investment Bank, and the International Monetary Fund, the Foreign, Commonwealth, and Development Office of the Government of the United Kingdom, the Agency for International Cooperation of the Government of Germany, and the Development Agency of the Government of France for the project;
(C)
the contractual terms of the project that preclude the use of covered telecommunication equipment or services and steps taken to ensure providers of telecommunication equipment or services meet such contractual terms; and
(D)
an update on the progress made on the project as of the date of the report.
(b)

Appropriate congressional committees defined
In this section, the term appropriate congressional committees means—
(1)
the Committee on Foreign Affairs and the Committee on Appropriations of the House of Representatives; and
(2)
the Committee on Foreign Relations and the Committee on Appropriations of the Senate.
6.

Definitions
In this Act:
(1)

Covered country
The term covered country includes—
(A)
any member state of the North Atlantic Treaty Organization that—
(i)
shares a border with the Russian Federation; and
(ii)
according to World Bank official data for 2020, has a Gross Domestic Product per capita, adjusted for purchasing power parity, of less than $45,000; and
(B)
any European country that—
(i)
has not participated or aided in Russia’s invasion of Ukraine; and
(ii)
according to World Bank official data for 2020, has a Gross Domestic Product per capita, adjusted for purchasing power parity, of less than $34,000.
(2)

Covered telecommunication equipment or services
The term covered telecommunication equipment or services means any of the following:
(A)
Telecommunication equipment or services produced or provided by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities).
(B)
Telecommunication equipment or services produced or provided by an entity that the Secretary of State, in consultation with the Director of National Intelligence, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the People’s Republic of China or the Russian Federation.
(3)

Early-stage project support
The term early-stage project support includes—
(A)
feasibility studies;
(B)
resource evaluations;
(C)
project appraisal and costing;
(D)
pilot projects;
(E)
commercial support, such as trade missions, reverse trade missions, technical workshops, international buyer programs, and international partner searchers to link suppliers to projects;
(F)
technical assistance and other guidance to improve the local regulatory environment and market frameworks to encourage transparent competition and enhance telecommunication security; and
(G)
long-term telecommunication sector planning.
(4)

Late-stage project support
The term late-stage project support includes debt financing, equity financing, insurance, and transaction advisory services.
(5)

Secure telecommunication equipment or services
The term secure telecommunication equipment or services means telecommunication equipment or services that are not, and do not contain, covered telecommunication equipment or services.
Passed the House of Representatives April 27, 2022.
Cheryl L. Johnson,
Clerk.