[Congressional Record Volume 143, Number 30 (Tuesday, March 11, 1997)]
[House]
[Pages H841-H846]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        HONG KONG REVERSION ACT

  Mr. BEREUTER. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 750) to support the autonomous governance of Hong Kong after 
its reversion to the People's Republic of China, as amended.
  The Clerk read as follows:

                                H.R. 750

       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 ``Hong Kong Reversion Act''.

     SEC. 2. STATEMENT OF PURPOSE.

       The purpose of this Act is to support the autonomous 
     governance of Hong Kong and the future well-being of the Hong 
     Kong people by ensuring the continuity of United States laws 
     with respect to Hong Kong after its reversion to the People's 
     Republic of China on July 1, 1997, and to outline 
     circumstances under which the President of the United States 
     could modify the application of United States laws with 
     respect to Hong Kong if the People's Republic of China fails 
     to honor its commitment to give the Special Administrative 
     Region of Hong Kong a high degree of autonomy.

     SEC. 3. FINDINGS.

       The Congress makes the following findings:
       (1) The Joint Declaration of the Government of the United 
     Kingdom of Great Britain and Northern Ireland and the 
     Government of the People's Republic of China on the Question 
     of Hong Kong, done at Beijing on December 19, 1984, is a 
     binding international agreement which sets forth the 
     commitments made by both governments on the reversion of Hong 
     Kong to the People's Republic of China on July 1, 1997.
       (2) The People's Republic of China in the Joint Declaration 
     pledges, among other things, that ``the Hong Kong Special 
     Administrative Region will enjoy a high degree of autonomy, 
     except in foreign and defence affairs . . .,'' that basic 
     human rights and freedoms ``will be ensured by law . . .,'' 
     and that ``[t]he legislature of the Hong Kong Special 
     Administrative Region shall be constituted by elections.''.
       (3) Senior government officials of the People's Republic of 
     China have repeatedly assured a smooth transfer of Hong Kong 
     to Chinese sovereignty, a successful implementation of the 
     ``one country, two systems'' policy, long-term prosperity for 
     Hong Kong, and continued respect for the basic rights of the 
     Hong Kong people.
       (4) Despite general assertions guaranteeing the autonomous 
     governance of Hong Kong, several official acts and statements 
     by senior officials of the Government of the People's 
     Republic of China reflect an attempt to infringe upon the 
     current and future levels of autonomy in Hong Kong. These 
     acts or statements include, but are not limited to--
       (A) initial proposals, which were later withdrawn, by 
     officials of the Government of the People's Republic of China 
     to obtain confidential files on civil servants of the Hong 
     Kong Government or require such civil servants to take 
     ``loyalty oaths'';
       (B) the decision of the Government of the People's Republic 
     of China to dissolve the democratically elected Legislative 
     Council on July 1, 1997, and the appointment of a provisional 
     legislature in December of 1996;
       (C) the delineation by officials concerning the types of 
     speech and association which will be permitted by the 
     Government of the People's Republic of China after the 
     reversion;
       (D) initial warnings, which were later withdrawn, to 
     religious institutions not to hold certain gatherings after 
     the reversion; and
       (E) the decision on February 23, 1997, of the Standing 
     Committee of the National People's Congress of the People's 
     Republic of China to repeal or amend certain Hong Kong 
     ordinances, including the Bill of Rights Ordinance, the 
     Societies Ordinance of 1992 (relating to freedom of 
     association), and the Public Order Ordinance of 1995 
     (relating to freedom of assembly).
       (5) The reversion of Hong Kong to the People's Republic of 
     China has important implications for both United States 
     national interests and the interests of the Hong Kong people. 
     The United States Government has a responsibility to ensure 
     that United States interests are protected during and after 
     this transition, and it has a profound interest in ensuring 
     that basic and fundamental human rights of the Hong Kong 
     people are also protected.
       (6) The United States-Hong Kong Policy Act of 1992 sets 
     forth United States policy concerning Hong Kong's reversion 
     to the People's Republic of China on July 1, 1997, and Hong 
     Kong's special status as a Special Administrative Region of 
     that country. It ensures the continuity of United States laws 
     regarding Hong Kong while establishing a mechanism in section 
     202 of that Act whereby the President can modify the 
     application of United States laws with respect to Hong Kong 
     if the President ``determines that Hong Kong is not 
     sufficiently autonomous to justify treatment under a 
     particular law of the United States, or any provision 
     thereof, different from that accorded the People's Republic 
     of China''.
       (7) One of the principal purposes of the Congress in 
     enacting the United States Hong Kong Policy Act of 1992 was 
     to maintain Hong Kong's autonomy by ensuring that the United 
     States will continue to treat Hong Kong as a distinct legal 
     entity, separate and apart from the People's Republic of 
     China, for all purposes, in those areas in which the People's 
     Republic of China has agreed that Hong Kong will continue to 
     enjoy a high degree of autonomy, unless the President makes a 
     determination under section 202 of that Act.
       (8) Although the United States Government can have an 
     impact on ensuring the future autonomy of the Hong Kong 
     Government and in protecting the well-being of the Hong Kong 
     people, ultimately the future of Hong Kong will be determined 
     by the willingness of the Government of the People's Republic 
     of China to maintain the freedoms now enjoyed by the people 
     of Hong Kong and to rely on the people of Hong Kong to govern 
     themselves.

     SEC. 4. CONGRESSIONAL DECLARATIONS.

       The Congress makes the following declarations:
       (1) Recognizing that the United States Government and the 
     Hong Kong Government have long enjoyed a close and beneficial 
     working relationship, for example between the United States 
     Customs Service, the Federal Bureau of Investigation, the 
     Drug Enforcement Administration, the Immigration and 
     Naturalization Service, the Secret Service, and their 
     corresponding agencies of the Hong Kong Government, the 
     United States urges the two governments to continue their 
     effective cooperation.
       (2) Recognizing that the preservation of Hong Kong's 
     autonomous customs territory has important security and 
     commercial implications for the United States and the people 
     of Hong Kong, the United States calls upon the People's 
     Republic of China to fully respect the autonomy of the Hong 
     Kong customs territory.
       (3) Recognizing that Hong Kong has historically been an 
     important port of call for United States naval vessels, the 
     United States urges the Government of the People's Republic 
     of China to consider in a timely and routine manner United 
     States requests for port calls at Hong Kong.
       (4) Recognizing that Hong Kong enjoys a robust and 
     professional free press with important guarantees on the 
     freedom of information, the United States declares that a 
     free press and access to information are fundamentally 
     important to the economic and commercial success of Hong Kong 
     and calls upon the Government of the People's Republic of 
     China to fully respect these essential rights of the Hong 
     Kong people.
       (5) Recognizing that the first fully democratic elections 
     of a legislature in Hong Kong took place in 1995, following 
     nearly 150 years of colonial rule, the United States 
     recognizes that the Joint Declaration of 1984 requires that 
     the Special Administrative Region legislature ``shall be 
     constituted by

[[Page H842]]

     elections'', declares that the failure to have an elected 
     legislature would be a violation of the Joint Declaration of 
     1984, and calls upon the Government of the People's Republic 
     of China to honor its treaty obligations.
       (6) Recognizing that the United Kingdom belatedly reformed 
     Hong Kong laws with respect to the civil rights of the Hong 
     Kong people, the Hong Kong people have nevertheless long 
     enjoyed essential rights and freedoms as enumerated in the 
     Universal Declaration of Human Rights; therefore, the United 
     States declares that the decision of the National People's 
     Congress to repeal or amend certain ordinances is a serious 
     threat to the Hong Kong people's continued enjoyment of their 
     freedom of association, speech, and other essential human 
     rights, unless those rights are reestablished no later than 
     July 1, 1997, and calls upon the National People's Congress 
     to reconsider its decision.
       (7) Recognizing that under the terms of the Joint 
     Declaration of 1984 the provisions of the International 
     Covenant on Civil and Political Rights will continue to apply 
     in Hong Kong, the United States welcomes the public statement 
     by the Chief Executive-designate of Hong Kong that the 
     legislation which will replace repealed or amended sections 
     of the Societies Ordinance and Public Order Ordinance will be 
     the subject of public consultation, and urges that the new 
     legislation should reflect both the clearly expressed wishes 
     of the people of Hong Kong and the provisions of the 
     International Covenant on Civil and Political Rights.
       (8) Recognizing that Hong Kong currently maintains an 
     efficient capitalist economy and trade system by strictly 
     adhering to the rule of law, by honoring the sanctity of 
     contract, and by operating without corruption and with 
     minimum and transparent regulation, the United States calls 
     upon the Government of the People's Republic of China to 
     fully respect the autonomy and independence of the chief 
     executive, the civil service, the judiciary, the police of 
     Hong Kong, and the Independent Commission Against Corruption.

     SEC. 5. PRESIDENTIAL DETERMINATION UNDER SECTION 202 OF THE 
                   UNITED STATES-HONG KONG POLICY ACT OF 1992 AND 
                   ADDITIONAL REPORTING REQUIREMENTS.

       (a) In General.--In determining whether ``Hong Kong is not 
     sufficiently autonomous to justify treatment under a 
     particular law of the United States, or any provision 
     thereof, different from that accorded the People's Republic 
     of China,'' as required by section 202(a) of the United 
     States-Hong Kong Policy Act of 1992, the President of the 
     United States, based upon the assessments made pursuant to 
     subsection (b) of this section, as well as other information 
     included in the reports submitted under section 301 of the 
     United States-Hong Kong Policy Act of 1992, shall consider 
     the performance of the Hong Kong Government and the actions 
     of the Government of the People's Republic of China.
       (b) Requirements for Reports to Congress.--The Secretary of 
     State shall include, in each report required by section 301 
     of the United States-Hong Kong Policy Act of 1992, the 
     following:
       (1) Successful and timely conclusion of agreements and 
     treaties.--An assessment by the Secretary of State of whether 
     the Hong Kong Government or the People's Republic of China, 
     or both, as the case may be, have cooperated with the United 
     States Government in securing the following agreements or 
     treaties:
       (A) A bilateral investment treaty.
       (B) An extradition treaty.
       (C) An agreement on consular access in Hong Kong for United 
     States citizens comparable to that provided for in the 
     consular convention between the United States and the 
     People's Republic of China.
       (D) An agreement to preserve the United States consulate, 
     with privileges and immunities for United States personnel.
       (E) A mutual legal assistance agreement.
       (F) A prison transfer agreement.
       (G) A civil aviation agreement.
       (2) Continued cooperation from the agencies of the hong 
     kong government.--An assessment by the Secretary of State of 
     whether agencies of the Hong Kong Government continue to 
     cooperate with United States Government agencies. The 
     Secretary of State shall cite in the report any evidence of 
     diminished cooperation in the areas of customs enforcement, 
     drug interdiction, and prosecution and prevention of money 
     laundering, counterfeiting, credit card fraud, and organized 
     crime.
       (3) Preservation of good governance and rule of law in hong 
     kong.--An assessment by the Secretary of State of whether the 
     Hong Kong Government remains autonomous and relatively free 
     of corruption and whether the rule of law is respected in 
     Hong Kong. The Secretary of State shall cite in the report 
     any--
       (A) efforts to annul or curtail the application of the Bill 
     of Rights of Hong Kong;
       (B) efforts to prosecute for violations of, or broaden the 
     application of, laws against treason, secession, sedition, 
     and subversion;
       (C) acts or threats against nonviolent civil disobedience;
       (D) interference in the autonomy of the chief executive, 
     the civil service, the judiciary, or the police;
       (E) increased corruption in the Hong Kong Government; and
       (F) efforts to suppress freedom of the press or restrict 
     the free flow of information.
       (4) Preservation of the autonomy of the customs territory 
     of hong kong.--An assessment by the Secretary of State of 
     whether the customs territory of Hong Kong is administered in 
     an autonomous manner. The Secretary of State shall cite in 
     the report any--
       (A) failure to respect United States textile laws and 
     quotas;
       (B) failure to enforce United States export control laws or 
     export license requirements;
       (C) unauthorized diversions from Hong Kong of high 
     technology exports from the United States to Hong Kong;
       (D) unprecedented diversion of Chinese exports through Hong 
     Kong in order to attain preferential treatment in United 
     States markets; and
       (E) misuse of the customs territory of Hong Kong to 
     implement the foreign policy or trade goals of the Government 
     of the People's Republic of China.

     SEC. 6. EXTENSION OF CERTAIN PRIVILEGES, EXEMPTIONS, AND 
                   IMMUNITIES TO HONG KONG ECONOMIC AND TRADE 
                   OFFICES.

       (a) Application of International Organizations Immunities 
     Act.--The provisions of the International Organizations 
     Immunities Act (22 U.S.C. 288 et seq.) may be extended to the 
     Hong Kong Economic and Trade Offices in the same manner, to 
     the same extent, and subject to the same conditions as such 
     provisions may be extended to a public international 
     organization in which the United States participates pursuant 
     to any treaty or under the authority of any Act of Congress 
     authorizing such participation or making an appropriation for 
     such participation.
       (b) Application of International Agreement on Certain State 
     and Local Taxation.--The President is authorized to apply the 
     provisions of Article I of the Agreement on State and Local 
     Taxation of Foreign Employees of Public International 
     Organizations, done at Washington, D.C. on April 21, 1994, to 
     the Hong Kong Economic and Trade Offices.
       (c) Definition.--The term ``Hong Kong Economic and Trade 
     Offices'' refers to Hong Kong's official economic and trade 
     missions in the United States.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Nebraska [Mr. Bereuter] and the gentleman from Alabama [Mr. Hilliard] 
each will control 20 minutes.
  The Chair recognizes the gentleman from Nebraska [Mr. Bereuter].
  (Mr. BEREUTER asked and was given permission to revise and extend his 
remarks.)
  Mr. BEREUTER. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, the purpose of this legislation, H.R. 750, is to support 
the autonomous governance of Hong Kong and the future well-being of the 
Hong Kong people. This bipartisan legislation was introduced by this 
Member on February 13, 1997, and unanimously approved last week by the 
House Committee on International Relations. It has been approved for 
consideration under the suspension calendar of course. That is why it 
is here today.
  This bipartisan bill has a long list of cosponsors, including as 
original cosponsor the distinguished gentleman from New York [Mr. 
Gilman], chairman of the Committee on International Relations, with a 
long and distinguished record as a leader in promoting democracy and 
human rights. His contributions and amendment have greatly strengthened 
this legislation. In addition, both the distinguished gentleman from 
Indiana [Mr. Hamilton], the ranking Democrat on the House Committee on 
International Relations, and the distinguished gentleman from 
California [Mr. Berman], the ranking Democrat on the Subcommittee on 
Asia and the Pacific, are also original cosponsors. Other original 
cosponsors include the distinguished gentleman from New York [Mr. 
Solomon], the distinguished gentleman from Nebraska [Mr. Barrett], the 
distinguished gentleman from California [Mr. Dreier], the distinguished 
gentleman from American Samoa [Mr. Faleomavaega], the distinguished 
gentleman from Arizona [Mr. Salmon], the distinguished gentleman from 
California [Mr. Cox], and the distinguished gentleman from Arizona [Mr. 
Kolbe]. Other distinguished Members have added their names 
subsequently, including two gentleman we will hear from, the gentleman 
from California [Mr. Campbell] and the gentleman from Illinois [Mr. 
Porter].
  Mr. Speaker, it is important that we consider and approve this 
legislation quickly because in less than 5 months the British rule ends 
and Hong Kong will become a special administrative region of China. 
Nobody knows exactly what will happen in Hong Kong on that night or the 
days, months and years thereafter.
  This reversion is unprecedented in its complexity. Hong Kong, one of 
the

[[Page H843]]

world's most efficient economies, will become part of an emerging giant 
that has yet to integrate itself fully into the world economy and which 
has only begun to experiment with democracy at the village level.
  The United Kingdom and the People's Republic of China have largely 
agreed on the basic rules for Hong Kong's reversion in the Sino-British 
Joint Declaration of 1984. For its part China has agreed to grant Hong 
Kong more autonomy, more autonomy than international law requires. In 
Hong Kong's constitution, the Basic Law of 1989, the National People's 
Congress unveiled a ``one country two systems'' arrangement for 50 
years. During that time Hong Kong is supposed to enjoy a high degree of 
autonomy except in the areas of foreign affairs and defense.
  It is rumored that more than 7,000 journalists from around the world 
will be on hand at midnight on June 30, 1997, to witness the official 
handover. In large part the attention focused on Hong Kong by the 
international press has been fueled by misguided efforts by the Chinese 
Government to disband the current legislative council and replace it 
with a provisional legislature, to alter civil rights protections in 
Hong Kong, and to improperly influence the extremely efficient civil 
service there. Clearly, these actions must not go unnoticed by the 
international community and by the United States Government.
  Therefore, today we are considering the Hong Kong Reversion Act, H.R. 
750, to object to these troubling proposals and developments and to 
express and act to protect the United States' national interests in 
Hong Kong. Most importantly, this legislation is absolutely clear in 
demanding that the People's Republic of China fully respect the 
autonomy that it has promised Hong Kong in the Joint Declaration of 
1984.
  Despite the overwhelming attention to the important issues of the 
legislative council and civil rights of Hong Kong, American foreign 
policy makers must also be concerned about more mundane traditional and 
transition issues which affect fundamental United States interests. For 
example, negotiations are currently underway between the United States 
and Hong Kong and the United States and China over a myriad of 
technical issues, including an extradition treaty, a bilateral 
investment treaty, consular functions and many more very important 
issues. Moreover, we must be very careful to assure that Hong Kong 
continues to honor U.S. export control laws and regulations after the 
transition.
  The Hong Kong Reversion Act will aid the Congress in examining all 
the important issues in this complex transition by building on the Hong 
Kong Policy Act of 1992. It requires assessments and reports by the 
Secretary of State in very specific areas so the President can 
knowledgeably determine under his existing authority whether to 
maintain current U.S. relations with Hong Kong.
  In light of these facts and the importance of this legislation, this 
Member urges his colleagues to vote for the Hong Kong Reversion Act, 
H.R. 750.
  Mr. Speaker, I reserve the balance of my time.
  Mr. HILLIARD. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in strong support of this bill, and I want to 
commend the gentleman from Nebraska [Mr. Bereuter] for his leadership 
in bringing the bill before this body.
  It is no secret that many Members are concerned about what lies in 
store for Hong Kong after China regains sovereignty on June 30 of this 
year. This legislation is intended to alert the PRC to these concerns 
and to put the leaders in Beijing on notice that the Members of 
Congress care deeply about the well-being of the people of Hong Kong.
  This is not meant as a threat but a statement of political reality. 
If Americans come to believe that China is subverting the freedom Hong 
Kong people currently enjoy, then it will be more difficult in 
maintaining the public and congressional support for recent and decent 
relations with China.

                              {time}  1600

  If, on the other hand, the transition in Hong Kong goes smoothly and 
the people of Hong Kong are permitted to retain their current freedoms, 
then I am confident that the public and the Members of Congress will 
continue to support a policy of engagement with China.
  This bill is our way of saying to China, if you value your 
relationship with the United States, then respect the rights and 
liberties of the Hong Kong people. This bill also makes some useful 
changes regarding the report on Hong Kong the Secretary of State 
periodically submits to Congress and the legal arrangement that will 
govern Hong Kong diplomatic representatives in the United States after 
June 30.
  The administration supports this bill. Indeed, the State Department 
specifically asked for the authority granted in section 6 regarding 
privileges and immunities. I support this bill, and I ask my colleagues 
to do the same.
  Mr. Speaker, I reserve the balance of my time.
  Mr. BEREUTER. Mr. Speaker, I yield 5 minutes to the distinguished 
gentleman from Illinois [Mr. Porter].
  Mr. PORTER. Mr. Speaker, I rise today in strong support of H.R. 750, 
the Hong Kong Reversion Act. As the House sponsor of the Hong Kong 
Policy Act of 1992, I would like to commend my colleague, the gentleman 
from Nebraska [Mr. Bereuter], for taking the lead in the final 
preparations for the United States Government to legally accommodate 
the reversion of Hong Kong to Chinese sovereignty.
  This legislation is very important to the continuation of the goals 
of the Hong Kong Policy Act, ensuring that Hong Kong retains its 
special treatment as a place unique and separate from the mainland in 
many ways, and that the laws of the United States reflect our desire to 
maintain a distinct relationship with Hong Kong. Therefore, it has my 
very strong support.
  The return of Hong Kong, the world's freest economy, to the 
jurisdiction of the People's Republic of China and the events leading 
up to it will have a major impact on United States-China relations. 
Whether this impact will be positive or negative remains to be seen. 
What is clear is that the United States is well positioned to play a 
role in securing a favorable outcome.
  Members of the business community, both here and in Hong Kong, have, 
by and large, remained optimistic that they will be able to continue to 
operate in Hong Kong as they have in the past. This optimism stems from 
the fact that the island's free market and legal institutions foster 
economic growth and opportunity, and the maintaining of this atmosphere 
is in China's best interest.
  Given the dramatic opening of the mainland economy in recent years 
and the benefits that have followed, I believe that the business 
community is correct in thinking that China values the economic freedom 
of Hong Kong and will try to preserve it.
  Unfortunately, I am afraid that the Chinese Government does not fully 
appreciate that preserving Hong Kong's market economy requires that 
they also preserve personal liberty and the rule of law. It is clear 
that the fate of United States interests in Hong Kong is inexorably 
linked to the democrats, to the journalists, to the Chinese dissidents, 
to the religious minorities and others whose rights will be threatened 
if Hong Kong is governed with the same heavy hand as the mainland.
  The United States must pursue a policy which respects the primacy of 
the joint declaration as the document which governs the transition, a 
policy which recognizes the peculiar tensions of our own relationship 
with the awakening power of China, and the policy which clearly 
enunciates the values of democracy, individual liberties, marketplace 
opportunity, and the rule of law, and makes clear our intention to 
standup for these values in Hong Kong.
  This is a difficult task but not an impossible one. It is a task we 
must accomplish if we are to preserve Hong Kong and the remarkable, 
vibrant, exciting, and free place that it is today.
  Mr. Speaker, the Hong Kong Reversion Act is a vital part of this 
balancing act and will codify our concerns about the transition. By 
giving the Hong Kong economic and trade office diplomatic privileges 
and immunities separate from the People's Republic of China, we 
reinforce the unique relationship we have with Hong Kong and our 
expectation that we will work directly with the Hong Kong government on 
matters of mutual concern. This is one of the most important elements 
of this legislation.

[[Page H844]]

  Further, this bill expresses our strong support for the autonomy and 
independence of Hong Kong in the management of its own affairs. By 
continuing to work directly with Hong Kong's law enforcement agencies, 
maintain separate treaty obligations with Hong Kong and declare our 
strong support for Hong Kong's institutions, the Congress will be a 
forceful voice for a true, one-country, two-systems approach to Hong 
Kong.
  Finally, we must take every opportunity to send the strongest 
possible message to Beijing that the future of Hong Kong is important 
to the United States, not just for economic reasons, but for moral ones 
as well. A free, stable, prosperous Hong Kong serves as a positive 
example in a region where none of these qualities is the norm.
  I hope and believe that Hong Kong can be a window on the future of 
Asia, especially China. We should all work to ensure that Hong Kong 
changes China more than China changes Hong Kong as a result of this 
historic process. This bill is part of that work, and I wholeheartedly 
commend it to my colleagues in the House.
  Mr. HILLIARD. Mr. Speaker, I yield 2 minutes to the gentleman from 
Michigan [Mr. Levin].
  (Mr. LEVIN asked and was given permission to revise and extend his 
remarks.)
  Mr. LEVIN. Mr. Speaker, I appreciate the gentleman yielding me this 
time.
  I rise in support of the Hong Kong Reversion Act, which affirms 
United States support for the autonomy of Hong Kong. When 21 other 
House Members and I visited Hong Kong and China in January, we saw 
firsthand the need for this legislation. Chinese Government 
representatives assured us that they would pursue the one China, two 
systems policy. The question was then and is now whether this means two 
political as well as two economic systems, whether political freedom 
will be preserved in Hong Kong alongside economic freedom.
  We are concerned about this because of the intrinsic value of 
political freedom itself, because political freedom enhances economic 
freedom, and because, as shown by nations like Singapore, economic 
freedom does not necessarily lead to political freedom.
  That is why we told C.H. Tung, China's supported chief executive for 
Hong Kong, that we were concerned about Beijing's decision to dissolve 
the democratically elected legislative counsel of Hong Kong. I asked 
Mr. Tung directly, ``Do you personally assure us that within a year 
after July 1 there will be a democratically elected legislative body in 
Hong Kong?'' He said ``yes.'' We should insist that Mr. Tung abide by 
this promise to restore democracy next year.
  Unfortunately, events since we left Hong Kong have pointed in a 
different direction, restriction of the rights to speech, assembly, and 
association. This bill makes clear the resolute expectation of the 
House that two systems within one China should mean political as well 
as economic freedom for Hong Kong. For in the end, the future of human 
rights in Hong Kong will impact the future of human rights in mainland 
China and indeed the future of human rights throughout the world.
  Mr. BEREUTER. Mr. Speaker, I yield such time as he may consume to the 
distinguished gentleman from California [Mr. Campbell], a member of the 
committee.
  (Mr. CAMPBELL asked and was given permission to revise and extend his 
remarks.)
  Mr. CAMPBELL. Mr. Speaker, I thank the gentleman for yielding me this 
time and also for his generosity in accepting the amendments that I 
offered in this process. I rise to make a matter of legislative history 
what those amendments were and why I offered them, why I believe our 
colleagues on the Committee on International Relations accepted them, 
and why I hope today our colleagues on the floor of the House of 
Representatives will vote in favor of them.
  The first deals with section 5, clause b(4)(d), and in it we deal 
with the provisions that the Secretary of State is to include in her 
report regarding the compliance of the new autonomous region, with our 
expectations, and I think the world's expectations, on economic 
behavior. A different part of the bill deals with our expectations on 
political behavior.
  The committee added, at my suggestion, the following, ``That included 
in that would be unprecedented diversion of Chinese exports through 
Hong Kong in order to attain preferential treatment in United States 
markets.'' The reason why I thought that was an important index of 
behavior was just this, that China not be encouraged to use Hong Kong 
as the means for having access to duty-free and preferential treatment 
throughout the world without changing a bit the economy of the other 
provinces of China, that Hong Kong is in a special tariff area and it 
be preserved in that area, but it not be isolated with the price then 
that the rest of China could continue in a less than free market 
economy, but that, rather, having seen the benefits available, 
particularly in the acceptance in the world economy for the special 
tariff region of Hong Kong, that the rest of China would be encouraged 
to do the same, and thereby also obtain access to the World Trade 
Organization opportunities when those are available, as they are 
presently available to Hong Kong, and other opportunities available 
under American law.
  So I am looking to see that China does not simply send its exports 
more and more through Hong Kong, which would not have the beneficial 
effect on the rest of the country, but rather the Hong Kong example 
would be emulated in the rest of China.
  Mr. Speaker, the other change the committee made at my suggestion is 
in section 4, clause 6. In this we deal with a statement of what we are 
hoping for with the new government. My colleague from Michigan referred 
to a meeting with C.H. Tung, the likely new governor, and in that I 
also had the privilege of meeting with him in August. I thought I would 
put on the record that the Chinese sentiment is real, that the British 
time in Hong Kong and the British particular dictating of terms in Hong 
Kong was contrary to Chinese sovereignty during the entire time of the 
occupation, that the taking of Hong Kong in the opium war was not a 
high point, let us say, in human rights practiced by the United 
Kingdom, and that whatever one might think about the validity of the 
rules that the British offered during the last period of their 
occupation of Hong Kong during the time, especially since the agreement 
for the reversion of Hong Kong, that it was China's right to set these 
rules; it was not by leave of Britain, it was China's right.
  So I asked the change to be made, that we look to the reestablishment 
of all of those rights which have now been taken away, particularly the 
rights for assembly and for political activity, that were granted 
during this period of time under the governorship of Chris Patten, but 
had not been granted theretofore, that we look to see these restored, 
but we see them restored when China retakes sovereignty over Hong Kong. 
And so a simple change to refer to is that anticipation that this occur 
no later than July 1, to give that at least symbolic and very 
important, not simply symbolic day for China, to say that now that we 
are sovereign again, we choose to establish guarantees of political 
freedom and assembly, as the sovereign and in our own right, and not 
simply because Britain had done so during its period of rule.
  Those are the legislative historical reasons for these two 
amendments. I thank my colleague for giving me the opportunity to 
explain them.
  Mr. BEREUTER. Mr. Speaker, I reserve the balance of my time.
  Mr. HILLIARD. Mr. Speaker, I yield 2 minutes to the gentleman from 
American Samoa [Mr. Faleomavaega].
  Mr. FALEOMAVAEGA. Mr. Speaker, I thank my good friend for yielding me 
this time.
  I am honored to be an original cosponsor of H.R. 750, which expresses 
United States support for the autonomy of Hong Kong and establishes 
requirements to determine whether the People's Republic of China is 
honoring commitments under the Joint Declaration of 1984 to retain Hong 
Kong's autonomy.
  I would be remiss if I did not express my appreciation to my good 
friend from Nebraska [Mr. Bereuter] for introducing this legislation, 
and I certainly would like to commend both the chairman of our 
committee, the gentleman from New York [Mr. Gilman] and the gentleman 
from Indiana [Mr. Hamilton], the ranking Democratic

[[Page H845]]

member of the full committee for their sponsorship and support of this 
important measure.
  Mr. Speaker, this legislation has bipartisan support. The transfer of 
Hong Kong from British to Chinese sovereignty on July 1 will indeed be 
a historic event. In ending Britain's colonial rule of Hong Kong, I am 
hopeful that China will abide by its commitment under the Joint 
Declaration to extend a high degree of autonomy to Hong Kong under the 
one-country, two-system policy.
  Although the recent actions taken by China regarding Hong Kong are 
troubling, as raised by some of my colleagues, I would hope that we 
would allow China some breathing space, Mr. Speaker, as the transition 
occurs.

                              {time}  1615

  On that note, I would like to associate myself with the comments made 
earlier by the gentleman from California [Mr. Campbell] regarding the 
fact that Hong Kong was literally a British colony. Now, all of a 
sudden we are talking about protection of democratic principles, 
personal freedoms, and more autonomy for the residents of this British 
colony, when years before they never had the privilege.
  Mr. Speaker, what happens in Hong Kong will have serious implications 
on Taiwan. What happens with Taiwan's future will determine the 
stability of the entire Asian-Pacific region.
  If China does not comply with its obligations for Hong Kong's 
autonomy, under the Joint Declaration, H.R. 750, will give our 
Government a mechanism for determining whether the current United 
States laws and policies toward Hong Kong should be maintained.
  Again, I thank my good friend, the gentleman from Nebraska, for his 
introduction of this important measure. I ask my colleagues to support 
the legislation.
  Mr. BEREUTER. Mr. Speaker, I yield such time as he may consume to the 
gentleman from New York [Mr. Gilman], chairman of the Committee on 
International Relations.
  (Mr. GILMAN asked and was given permission to revise and extend his 
remarks and include extraneous material.)
  Mr. GILMAN. Mr. Speaker, I thank the gentleman for yielding time to 
me.
  Mr. Speaker, I am pleased to commend the gentleman from Nebraska, the 
chairman of our Subcommittee on Asia and the Pacific of the Committee 
on International Relations, and the ranking minority member, the 
gentleman from California [Mr. Berman] for crafting this measure, a 
resolution to support the autonomous governance of Hong Kong after its 
reversion to the People's Republic of China.
  Hong Kong's autonomy is clearly under attack. The Government of the 
People's Republic of China has decided to dissolve Hong Kong's 
democratically elected legislative council on July 1 of this year and 
appoint a provisional legislature.
  Early in February of this year, the preparatory committee appointed 
by the People's Republic of China recommended the repeal and the 
amendment of Hong Kong ordinances, including the bill of rights, the 
societies ordinance relating to freedom of association, and the public 
order ordinance relating to freedom of assembly.
  These two actions and the many threats by Communist officials 
regarding the types of speech and association, in addition to warnings 
to religious institutions, are ominous indicators of what the 
courageous people of Hong Kong are facing as their territory reverts 
back to Communist China.
  It is without a doubt that Hong Kong's autonomy is lost without an 
elected legislature, and with the repeal of the bill of rights and 
other ordinances that protect its citizenry against Beijing's intrusion 
into their freedom.
  H.R. 750 directs the Secretary of State to study these matters and 
take action in order to protect our Nation's relationship with Hong 
Kong. Accordingly, I urge my colleagues to fully support this measure.
  Mr. Speaker, I would like also to note my appreciation for the 
cooperation of the gentleman from Texas [Mr. Archer], the chairman of 
the Committee on Ways and Means, in connection with our proceedings 
here today. Chairman Archer agreed to waive jurisdiction of this bill 
in his committee in order to allow us to proceed with its expeditious 
consideration on the floor.
  Mr. Speaker, I include for the Record correspondence between Chairman 
Archer and myself related to this matter.
  The material referred to is as follows:

                         Committee on International Relations,

                                   Washington, DC, March 10, 1997.
     Hon. Bill Archer,
     Chairman, Committee on Ways and Means, House of 
         Representatives, Washington, DC.
       Dear Mr. Chairman: I am writing about H.R. 750, which was 
     recently introduced by Representative Doug Bereuter and 
     referred solely to this Committee. On March 6, 1997, our 
     Committee marked up this bill and agreed to a resolution 
     asking that I seek its consideration on the suspension 
     calendar. The leadership has scheduled its consideration for 
     tomorrow.
       I am advised that the Committee on Ways and Means has 
     jurisdictional interest in this bill, in part because, in 
     section 5, the bill adds criteria to be considered by the 
     President in making determinations under section 22 of the 
     U.S.-Hong Kong Policy Act of 1992.
       As you know, this bill has widespread support and the 
     provisions that may involve Ways and Means jurisdiction are 
     minor ones, on which our staffs have previously been in touch 
     and about which no substantive problems were raised. 
     Accordingly, I would appreciate your agreeing to the bill's 
     consideration on the suspension calendar notwithstanding the 
     fact that it was not referred to the Ways and Means 
     Committee.
       With best wishes,
           Sincerely,
                                               Benjamin A. Gilman,
     Chairman.
                                  ____



                                  Committee on Ways and Means,

                                   Washington, DC, March 10, 1997.
     Hon. Benjamin Gilman,
     Chairman, Committee on International Relations, Rayburn House 
         Office Building, Washington, DC.
       Dear Mr. Chairman: I am writing with regard to H.R. 750, 
     the Hong Kong Reversion Act, which was approved by the 
     Committee on International Relations on March 6, 1997 and is 
     scheduled for consideration in the House on March 11, 1997.
       In addition to addressing general economic and trade 
     relations between the United States and Hong Kong after its 
     reversion to the People's Republic of China on July 1, 1997, 
     the bill contains several specific provisions that could 
     affect the future treatment of Hong Kong under various U.S. 
     trade laws which fall within the jurisdiction of the 
     Committee on Ways and Means.
       Section 5 of H.R. 750 requires the President, when 
     determining, under Section 202(a) of the United States-Hong 
     Kong Policy Act of 1992, whether Hong Kong is sufficiently 
     autonomous to justify treatment under the laws of the United 
     States, including U.S. trade laws, different from that 
     accorded to the People's Republic of China, to consider 
     information provided by the Secretary of State in the report 
     required under section 301 of the United States Hong Kong 
     Policy Act of 1992. This would modify the President's 
     authority to waive the applicability of U.S. law, including 
     import and other trade and tariff laws, with respect to Hong 
     Kong. Section 5(b) requires that the Secretary of State 
     include in this report an assessment of whether the Hong Kong 
     Government and the People's Republic of China have cooperated 
     in securing a bilateral investment treaty and whether there 
     is diminished cooperation in areas of customs enforcement, 
     drug interdiction and money laundering. Section 5(b) also 
     requires the Secretary of State to cite any failure by these 
     governments to respect United States textile laws and quotas 
     and any misuse of the customs territory of Hong Kong to 
     implement the foreign policy or trade goals of the Government 
     of the People's Republic of China. All of these provisions 
     could affect the future of U.S. commercial relations with 
     Hong Kong.
       In view of your desire for early House action on this bill, 
     the non-controversial nature of the trade-related provisions, 
     and the fact that they do not directly change existing U.S. 
     trade laws or policies, it will not be necessary for the 
     Committee on Ways and Means to mark up H.R. 750. This is 
     being done only with the understanding that this action in 
     the instance in no way establishes a precedent or prejudices 
     the Committee on Ways and Means' jurisdiction over provisions 
     of the type described above. I would appreciate your 
     confirmation of this understanding and reference to this 
     exchange of letters during House consideration of the bill.
       I look forward to prompt consideration of this important 
     legislation by the House.
           Sincerely,
                                                      Bill Archer,
                                                         Chairman.

  Mr. BEREUTER. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I include for the Record a cost estimate on the impact 
of H.R. 750 by the Congressional Budget Office, and note that the cost 
is estimated to be zero.
  The material referred to is as follows:


[[Page H846]]


                                                    U.S. Congress,


                                  Congressional Budget Office,

                                    Washington, DC, March 7, 1997.
     Hon. Benjamin A. Gilman,
     Chairman, Committee on International Relations, House of 
         Representatives, Washington, DC.
       Dear Mr. Chairman: The Congressional Budget Office has 
     prepared the enclosed cost estimate for H.R. 750, the Hong 
     Kong Reversion Act, as ordered reported by the House 
     Committee on International Relations on March 6, 1997.
       If you wish further details on this estimate, we will be 
     pleased to provide them. The CBO staff contact is Joseph C. 
     Whitehill.
           Sincerely,
                                                  June E. O'Neill,
                                                         Director.
       Enclosure.

               Congressional Budget Office Cost Estimate


  h.r. 750, hong kong reversion act--as ordered reported by the house 
         committee on international relations on march 6, 1997

       CBO estimates that the bill would result in no significant 
     costs to the federal government. Because it would not affect 
     direct spending or receipts, pay-as-you-go procedures would 
     not apply. H.R. 750 contains no intergovernmental or private-
     sector mandates as defined in the Unfunded Mandates Reform 
     Act of 1995 (Public Law 104-4) and would impose no costs on 
     state, local, or tribal governments.
       The United States-Hong Kong Policy Act of 1992 (Public Law 
     102-383) allows the laws of the United States to be applied 
     to Hong Kong without change after its reversion to China so 
     long as Hong Kong remains sufficiently autonomous to justify 
     a separate treatment. H.R. 750 would require that the 
     Secretary of State's report on conditions in Hong Kong 
     required by the earlier act address specific issues regarding 
     Hong Kong's cooperation with U.S. agencies and continued 
     autonomy.
       In addition, H.R. 750 would continue, after Hong Kong 
     reverts to China, some of the privileges and immunities that 
     employees of the Hong Kong economic and trade offices 
     currently enjoy as part of the British consular presence.
       The CBO staff contact for this estimate is Joseph C. 
     Whitehill. The estimate was approved by Robert A. Sunshine, 
     Deputy Assistant Director for Budget Analysis.

  Ms. PELOSI. Mr. Speaker, I rise today in support of H.R. 570, the 
Hong Kong Reversion Act. I commend Chairman Bereuter and Ranking Member 
Berman for bringing this bill to the floor today. While there are 
differing views in Congress about the direction which United States-
China policy should take, we are all united in our concern about the 
future of Hong Kong. On July 1, 1997, less than 4 months from now, 
control over Hong Kong will revert to China. This action defines the 
future for a freedom-loving people, who will find themselves under the 
jurisdiction of an authoritarian regime.
  There is much at stake with this takeover and the people of Hong Kong 
are not the only ones who will feel its effects. Hong Kong's very 
viability as a global financial center will be threatened if the 
Chinese Government does not act responsibly and does not respect 
internationally recognized basic human rights and fundamental 
principles. Transparency, access to unbiased information in real time, 
and recourse to an independent judicial system are all critical 
components of long-term economic growth. Restrictions on freedom of the 
press and freedom of speech stifle a citizenry and undermine its 
economy. Unfortunately, the future picture for Hong Kong is already 
clouded.
  In 1984, the United Kingdom and China in 1984 created a framework for 
Hong Kong's reversion in the Sino-British Joint Declaration. The Joint 
Declaration established a ``one-country, two-system'' arrangement, 
under which Hong Kong would enjoy a ``high degree of autonomy'' in its 
operation for the next 50 years. Recently, serious questions have 
arisen about China's intentions to adhere to its agreement in light of 
actions by Beijing, including abolishing Hong Kong's democratically 
elected legislature, and repealing its Bill of Rights and other 
ordinances ensuring the rights of freedom of association and assembly.
  H.R. 750 reaffirms congressional support for the automony of Hong 
Kong and implements a series of reports and guidelines to determine 
whether China is fulfilling its obligations under the 1984 Joint 
Declaration. Under the bill, the President of the United States could 
modify current United States law and policies involving Hong Kong, 
should he determine that ``Hong Kong is not sufficiently autonomous * * 
*''. While this bill does not go as far as I believe it should go in 
protecting the people of Hong Kong, it is an important step.
  No discussion of Hong Kong's future would be complete without 
acknowledging the ongoing struggle of its brave prodemocracy movement 
to ensure basic freedoms for its people. The courage and commitment of 
Hong Kong's prodemocracy activists, led by Martin Lee, and including 
Emily Lau and Christine Loh, is exemplary. We must speak out on their 
behalf to support their efforts and to ensure their safety.
  Mr. HILLIARD. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  Mr. BEREUTER. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Nebraska [Mr. Bereuter] that the House suspend the rules 
and pass the bill, H.R. 750, as amended.
  The question was taken.
  Mr. BEREUTER. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 5 of rule I and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

                          ____________________