[Congressional Record Volume 144, Number 59 (Tuesday, May 12, 1998)]
[Senate]
[Pages S4732-S4733]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      THE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1999

                                 ______
                                 

                  HUTCHINSON AMENDMENTS NOS. 2387-2388

  (Ordered to lie on the table.)
  Mr. HUTCHINSON submitted two amendments intended to be proposed by 
him to the bill (S. 2057) to authorize appropriations for the fiscal 
year 1999 for military activities of the Department of Defense, for 
military construction, and for defense activities of the Department of 
Energy, to prescribe personnel strengths for such fiscal year for the 
Armed Forces, and for other purposes; as follows:

                           Amendment No. 2387

       Add at the end the following new title:
      TITLE __--COMMERCIAL ACTIVITIES OF PEOPLE'S LIBERATION ARMY

     SEC. __. FINDINGS.

       Congress makes the following findings:
       (1) The People's Liberation Army is the principal 
     instrument of repression within the People's Republic of 
     China, responsible for occupying Tibet since 1950, massacring 
     hundreds of students and demonstrators for democracy in 
     Tiananmen Square on June 4, 1989, and running the Laogai 
     (``reform through labor'') slave labor camps.
       (2) The People's Liberation Army is engaged in a massive 
     military buildup, which has involved a doubling since 1992 of 
     announced official figures for military spending by the 
     People's Republic of China.
       (3) The People's Liberation Army is engaging in a major 
     ballistic missile modernization program which could undermine 
     peace and stability in East Asia, including 2 new 
     intercontinental missile programs, 1 submarine-launched 
     missile program, a new class of compact but long-range cruise 
     missiles, and an upgrading of medium- and short-range 
     ballistic missiles.
       (4) The People's Liberation Army is working to coproduce 
     the SU-27 fighter with Russia, and is in the process of 
     purchasing several substantial weapons systems from Russia, 
     including the 633 model of the Kilo-class submarine and the 
     SS-N-22 Sunburn missile system specifically designed to 
     incapacitate United States aircraft carriers and Aegis 
     cruisers.
       (5) The People's Liberation Army has carried out acts of 
     aggression in the South China Sea, including the February 
     1995 seizure of the Mischief Reef in the Spratley Islands, 
     which is claimed by the Philippines.
       (6) In July 1995 and in March 1996, the People's Liberation 
     Army conducted missile tests to intimidate Taiwan when Taiwan 
     held historic free elections, and those tests effectively 
     blockaded Taiwan's 2 principal ports of Keelung and 
     Kaohsiung.
       (7) The People's Liberation Army has contributed to the 
     proliferation of technologies relevant to the refinement of 
     weapons-grade nuclear material, including transferring ring 
     magnets to Pakistan.
       (8) The People's Liberation Army and associated defense 
     companies have provided ballistic missile components, cruise 
     missiles, and chemical weapons ingredients to Iran, a country 
     that the executive branch has repeatedly reported to Congress 
     is the greatest sponsor of terrorism in the world.
       (9) In May 1996, United States authorities caught the 
     People's Liberation Army enterprise Poly Technologies and the 
     civilian defense industrial company Norinco attempting to 
     smuggle 2,000 AK-47s into Oakland, California, and offering 
     to sell urban gangs shoulder-held missile launchers capable 
     of ``taking out a 747'' (which the affidavit of the United 
     States Customs Service of May 21, 1996, indicated that the 
     representative of Poly Technologies and Norinco claimed), and 
     Communist Chinese authorities punished only 4 low-level arms 
     merchants by sentencing them on May 17, 1997, to brief prison 
     terms.
       (10) The People's Liberation Army contributes to the 
     People's Republic of China's failure to meet the standards of 
     the 1995 Memorandum of Understanding with the United States 
     on intellectual property rights by running factories which 
     pirate videos, compact discs, and computer software that are 
     products of the United States.
       (11) The People's Liberation Army contributes to the 
     People's Republic of China's failing to meet the standards of 
     the February 1997 Memorandum of Understanding with the United 
     States on textiles by operating enterprises engaged in the 
     transshipment of textile products to the United States 
     through third countries.
       (12) The estimated $2,000,0000,000 to $3,000,000,000 in 
     annual earnings of People's Liberation Army enterprises 
     subsidize the expansion and activities of the People's 
     Liberation Army described in this subsection.
       (13) The commercial activities of the People's Liberation 
     Army are frequently conducted on noncommercial terms, or for 
     noncommercial purposes such as military or foreign policy 
     considerations.

     SEC. __. APPLICATION OF AUTHORITIES UNDER THE INTERNATIONAL 
                   EMERGENCY ECONOMIC POWERS ACT TO CHINESE 
                   MILITARY COMPANIES.

       (a) Determination of Communist Chinese Military 
     Companies.--
       (1) In general.--Subject to paragraphs (2) and (3), not 
     later than 90 days after the date of the enactment of this 
     Act, the Secretary of Defense, in consultation with the 
     Attorney General, the Director of Central Intelligence, and 
     the Director of the Federal Bureau of Investigation, shall 
     compile a list of persons who are Communist Chinese military 
     companies and who are operating directly or indirectly in the 
     United States or any of its territories and possessions, and 
     shall publish the list of such persons in the Federal 
     Register. On an ongoing basis, the Secretary of Defense, in 
     consultation with the Attorney General, the Director of 
     Central Intelligence, and the Director of the Federal Bureau 
     of Investigation, shall make additions or deletions to the 
     list based on the latest information available.
       (2) Communist chinese military company.--For purposes of 
     making the determination required by paragraph (1), the term 
     ``Communist Chinese military company''--
       (A) means a person that is--
       (i) engaged in providing commercial services, 
     manufacturing, producing, or exporting, and
       (ii) owned or controlled by the People's Liberation Army, 
     and
       (B) includes, but is not limited to, 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, and any update of such reports for 
     the purposes of this title.
       (b) Presidential Authority.--
       (1) Authority.--The President may exercise the authorities 
     set forth in section 203(a) of the International Emergency 
     Economic Powers Act (50 U.S.C. 1702(a)) with respect to any 
     commercial activity in the United States by a Communist 
     Chinese military company (except with respect to authorities 
     relating to importation), without regard to section 202 of 
     that Act.
       (2) Penalties.--The penalties set forth in section 206 of 
     the International Emergency Economic Powers Act (50 U.S.C. 
     1705) shall apply to violations of any license, order, or 
     regulation issued under paragraph (1).

     SEC. __. DEFINITION.

       For purposes of this title, the term ``People's Liberation 
     Army'' means the land, naval, and air military services, the 
     police, and the intelligence services of the Communist 
     Government of the People's Republic of China, and any member 
     of any such service or of such police.
                                  ____


                           Amendment No. 2388

         Add at the end the following new sections:

     SEC. __. FINDINGS.

       Congress makes the following findings:
       (1) The United States Customs Service has identified goods, 
     wares, articles, and merchandise mined, produced, or 
     manufactured under conditions of convict labor, forced labor, 
     and indentured labor in several countries.
       (2) The United States Customs Service has actively pursued 
     attempts to import products made with forced labor, resulting 
     in seizures, detention orders, fines, and criminal 
     prosecutions.
       (3) The United States Customs Service has taken 21 formal 
     administrative actions in

[[Page S4733]]

     the form of detention orders against different products 
     destined for the United States market, found to have been 
     made with forced labor, including products from the People's 
     Republic of China.
       (4) The United States Customs Service does not currently 
     have the tools to obtain the timely and in-depth verification 
     necessary to identify and interdict products made with forced 
     labor that are destined for the United States market.

     SEC. __. AUTHORIZATION FOR ADDITIONAL CUSTOMS PERSONNEL TO 
                   MONITOR THE IMPORTATION OF PRODUCTS MADE WITH 
                   FORCED LABOR.

       There are authorized to be appropriated for monitoring by 
     the United States Customs Service of the importation into the 
     United States of products made with forced labor, the 
     importation of which violates section 307 of the Tariff Act 
     of 1930 or section 1761 of title 18, United States Code, 
     $2,000,000 for fiscal year 1999.

     SEC. __. REPORTING REQUIREMENT ON FORCED LABOR PRODUCTS 
                   DESTINED FOR THE UNITED STATES MARKET.

       (a) Report to Congress.--Not later than 1 year after the 
     date of the enactment of this Act, the Commissioner of 
     Customs shall prepare and transmit to Congress a report on 
     products made with forced labor that are destined for the 
     United States market.
       (b) Contents of Report.--The report under subsection (a) 
     shall include information concerning the following:
       (1) The extent of the use of forced labor in manufacturing 
     products destined for the United States market.
       (2) The volume of products made with forced labor, destined 
     for the United States market, that is in violation of section 
     307 of the Tariff Act of 1930 or section 1761 of the title 
     18, United States Code, and is seized by the United States 
     Customs Service.
       (3) The progress of the United States Customs Service in 
     identifying and interdicting products made with forced labor 
     that are destined for the United States market.

     SEC. __. RENEGOTIATING MEMORANDA OF UNDERSTANDING ON FORCED 
                   LABOR.

       It is the sense of Congress that the President should 
     determine whether any country with which the United States 
     has a memorandum of understanding with respect to reciprocal 
     trade which involves goods made with forced labor is 
     frustrating implementation of the memorandum. Should an 
     affirmative determination be made, the President should 
     immediately commence negotiations to replace the current 
     memorandum of understanding with one providing for effective 
     procedures for the monitoring of forced labor, including 
     improved procedures to request investigations of suspected 
     prison labor facilities by international monitors.

     SEC. __. DEFINITION OF FORCED LABOR.

       As used in sections __ through __ of this Act, the term 
     ``forced labor'' means convict labor, forced labor, or 
     indentured labor, as such terms are used in section 307 of 
     the Tariff Act of 1930.

                          ____________________