[Congressional Record Volume 142, Number 92 (Thursday, June 20, 1996)]
[Extensions of Remarks]
[Pages E1131-E1132]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                STOP SUBSIDIZING CHINA'S MILITARY FORCES

                                 ______


                        HON. BENJAMIN A. GILMAN

                              of new york

                    in the house of representatives

                        Thursday, June 20, 1996

  Mr. GILMAN. Mr. Speaker, today I have introduced H.R. 3684, which 
prohibits the importation into the United States of civilian and 
military goods produced, manufactured, or exported by the People's 
Liberation Army [PLA] or any Chinese defense industrial trading 
company. I strongly urge my colleagues support of this initiative which 
will deprive the PLA and its subsidiaries of the hard currency that 
supports activities which are inimical to U.S. economic and national 
security interests.
  Two Chinese Government defense firms have been implicated in the 
largest assault weapons smuggling operation in United States history. 
Some of the heads of these firms, which sought to smuggle over 2,000 
AK-47 semi-automatic weapons into the United States, are relatives of 
China's top leadership.
  Moreover, the PLA and the defense industrial trading organization are 
responsible for a series of events which are a threat to vital United 
States interests, including; the recent belligerent gestures toward 
Taiwan during the first democratic elections in Chinese history; the 
transfer of cruise missiles to Iran, M-11 missiles and nuclear 
technology to Pakistan and the purchase by China of SS-18 strategic 
missile technology and equipment from Russia; the violation of United 
States-Chinese textile agreements and intellectual property rights 
[IPR]; and the flagrant human rights violations in the form of the 
occupation of Tibet, the maintenance of political prisoner camps known 
as Laogai and the repression of the religious freedom of Chinese 
Christians. Finally, let us not forget the repression wrought by the 
PLA on the democratic protesters in Tainamen Square.
  Accordingly, enactment of this bill will curb the activities of the 
PLA which threaten our economic and national security and are an 
affront to our form of government and free society. Accordingly, I urge 
my colleagues to cosponsor and support H.R. 3684 and ask that the full 
text of H.R. 3684 be printed at this point in the Record.

                               H.R. 3684

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

     SECTION 1. CONGRESSIONAL FINDINGS AND DECLARATION OF POLICY

       (a) Findings.--The Congress makes the following findings:
       (1) According to the Defense Intelligence Agency, the 
     People's Liberation Army of China owns and operates a number 
     of enterprises which produce both civilian and military 
     products.
       (2) The General Staff Department of the People's Liberation 
     Army owns and operates Polytechnologies, which is the weapons 
     trading arm of the People's Liberation Army and has a 
     representative office in the United States.
       (3) The General Logistics Department of the People's 
     Liberation Army owns and operates a large international 
     conglomerate known as Xinxing Corporation, which also has a 
     representative office in the United States.
       (4) The People's Armed Police, which is partially 
     controlled by the People's Liberation Army, is responsible 
     for the occupation and suppression of dissent in Tibet and 
     the execution of prisoners throughout China, and provides 
     guards for the forced labor camp system in Laogai, China, 
     owns and operates China Jingan Equipment Import and Export, 
     which also has a representative office in the United States.
       (5) These and other enterprises owned by the People's 
     Liberation Army regularly export a great variety of products 
     to the United States, including, but not limited to, 
     clothing, toys, shoes, hand tools, fish, minerals, and 
     chemicals.
       (6) The export of products allows the People's Liberation 
     Army to earn hard currency directly, which in turn can be 
     used to modernize its forces.
       (7) The average consumer in the United States is unaware 
     that products they are purchasing were produced by the 
     People's Liberation Army.
       (8) Trade with the People's Liberation Army effectively is 
     a subsidy of military operations of the People's Republic of 
     China.
       (9) The China National Nuclear Corporation exported illicit 
     nuclear technology to Pakistan in contravention of the Treaty 
     on the Non-Proliferation of Nuclear Weapons and the Arms 
     Export Control Act, thereby contributing to the threat of 
     nuclear war on the Indian Subcontinent.
       (10) Naval units of the People's Liberation Army have 
     committed aggression against the Republic of the Philippines 
     and threatened the United States Navy's right of free passage 
     in the South China Sea.
       (11) Chinese defense industrial trading companies have 
     transferred cruise missiles to Iran, thereby threatening the 
     safety of United States military personnel in the region.
       (12) Representatives of China North Industries Corporation, 
     a Chinese Government organization, have been indicted by the 
     U.S. federal government for smuggling of firearms and 
     conspiracy related thereto, importation of firearms without a 
     license, importation and sale of firearms with obliterated

[[Page E1132]]

     serial numbers, and transfer and possession of machine guns 
     in violation of the laws of the United States.
       (13) Representatives of Poly Group, a Chinese Government 
     organization, have also been indicted for engaging in the 
     unlawful activities described in paragraph (12).
       (14) Representatives of China North Industries Corporation 
     attempted to sell solid rocket fuel to Iraq in the fall of 
     1990, contrary to a number of actions by the United Nations 
     Security Council.
       (b) Policy.--It is the policy of the United States to 
     prohibit the importation into the United States of goods that 
     are produced, manufactured, or exported by the People's 
     Liberation Army or Chinese defense industrial trading 
     companies.

     SEC. 2. PROHIBITION ON CERTAIN IMPORTS.

       (a) In General.--Notwithstanding any other provision of 
     law, no good that is produced, manufactured, or exported by 
     the People's Liberation Army or a Chinese defense 
     industrial trading company may be entered, or withdrawn 
     from warehouse for consumption, into the customs territory 
     of the United States.
       (b) Determination of Chinese Defense Industrial Trading 
     Companies.--
       (1) In general.--Subject to paragraphs (2) and (3), not 
     later than 30 days after the date of the enactment of this 
     Act, the Secretary of the Treasury shall determine which 
     persons are Chinese defense industrial trading companies for 
     purposes of this Act. The Secretary shall publish a list of 
     such persons in the Federal Register.
       (2) Public hearing.--
       (A) General rule.--Before making the determination and 
     publishing the list required by paragraph (1), the Secretary 
     of the Treasury shall hold a public hearing for the purpose 
     of receiving oral and written testimony regarding the persons 
     to be included on the list.
       (B) Additions and deletions.--The Secretary of the Treasury 
     may add or delete persons from the list based on information 
     available to the Secretary or upon receipt of a request 
     containing sufficient information to take such action.
       (3) Chinese defense industrial trading company.--For 
     purposes of making the determination required by paragraph 
     (1), the term ``Chinese defense industrial trading 
     company''--
       (A) means a person that is--
       (i) engaged in manufacturing, producing, or exporting, and
       (ii) affiliated with or owned, controlled, or subsidized by 
     the People's Liberation Army, and
       (B) includes any person identified in the United States 
     Defense Intelligence Agency publication numbered VP-1920-271-
     90, dated September 1990, or PC-1921-57-95, dated October 
     1995.
       (c) Effective Date.--Subsection (a) shall apply with 
     respect to goods entered, or withdrawn from warehouse for 
     consumption, on or after the 45th day after the date of the 
     enactment of this Act.

     SEC. 3. DEFINITION.

       For purposes of this Act, the term ``People's Liberation 
     Army'' means any branch or division of the land, naval, or 
     air military service or the police of the Government of the 
     People's Republic of China.

                          ____________________