[Congressional Record Volume 146, Number 105 (Monday, September 11, 2000)]
[Senate]
[Pages S8345-S8350]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
AMENDMENTS SUBMITTED
______
U.S.-CHINA RELATIONS ACT OF 2000
______
BYRD AMENDMENT NO. 4131
Mr. BYRD proposed an amendment to the bill (H.R. 4444) to authorize
extension of nondiscriminatory treatment (normal trade relations
treatment) to the People's Republic of China, and to establish a
framework for relations between the United States and the People's
Republic of China; as follows:
Beginning on page 16, strike line 11 and all that follows
through line 2 on page 17 and insert the following:
``(k) Standard for Presidential Action.--
``(1) Findings.--Congress finds that--
``(A) market disruption causes serious harm to the United
States industrial and agricultural sectors which has grave
economic consequences;
``(B) product-specific safeguard provisions are a critical
component of the United States-China Bilateral Agreement to
remedy market disruptions; and
``(C) where market disruption occurs it is essential for
the Commission and the President to comply with the timeframe
stipulated under this Act.
``(2) Timeframe for action.--Not later than 15 days after
receipt of a recommendation from the Trade Representative
under subsection (h) regarding the appropriate action to take
to prevent or remedy a market disruption, the President shall
provide import relief for the affected industry pursuant to
subsection (a), unless the President determines and certifies
to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate
that provision of such relief is not in the national economic
interest of the United States or, in extraordinary cases,
that taking action pursuant to subsection (a) would cause
serious harm to the national security of the United States.
``(3) Basis for presidential certification.--The President
may determine and certify under paragraph (2) that providing
import relief is not in the national economic
[[Page S8346]]
interest of the United States only if the President finds
that taking such action would have an adverse impact on the
United States economy clearly greater than the benefits of
such action.
``(4) Automatic relief.--
``(A) In general.--If, within 70 days after receipt of the
Commission's report described in subsection (g), the
President and the United States Trade Representative have not
taken action with respect to denying or granting the relief
recommended by the Commission, the relief shall automatically
take effect.
``(B) Period relief in effect.--The relief provided for
under subparagraph (A) shall remain in effect without regard
to any other provision of this section.
______
THOMPSON AMENDMENT NO. 4132
Mr. THOMPSON proposed an amendment to the bill; H.R. 4444, supra; as
follows:
At the end of the bill, insert the following new title:
TITLE--CHINA NONPROLIFERATION
SEC. ____01. SHORT TITLE.
This title may be cited as the ``China Nonproliferation
Act''.
SEC. ____02. DEFINITIONS.
In this title:
(1) Covered country.--The term ``covered country'' means
the following:
(A) Relationship to most current report.--Any country
identified by the Director of Central Intelligence as a
source or supply of dual-use and other technology in the most
current report required pursuant to section 721 of the
Intelligence Authorization Act for Fiscal Year 1997 (or any
successor report on the acquisition by foreign countries of
dual use and other technology useful for the development or
production of weapons of mass destruction).
(B) Countries previously included.--Any country that was
previously included in a report described in subparagraph
(A), but that subsequently is not included in such report. A
country described in the preceding sentence shall continue to
be considered a covered country for purposes of this title
unless and until such country has not been identified by the
Director of Central Intelligence in the report described in
subparagraph (A) for 5 consecutive years.
(C) Initial countries.--On the date of enactment of this
Act, China, Russia, and North Korea shall be considered
covered countries for purposes of this Act and shall continue
to be considered covered countries pursuant to subparagraph
(B).
(2) Cruise missile.--The term ``cruise missile'' means any
cruise missile with 300 or more kilometers of range
capability or 500 or more kilograms of payload capability.
(3) Goods, services, or technology.--The term ``goods,
services, or technology'' means any goods, services, or
technology--
(A) listed on--
(i) the Nuclear Suppliers Group Guidelines for the Export
of Nuclear Material, Equipment and Technology (published by
the International Atomic Energy Agency as Information
Circular INFCIRC/254/Rev. 3/Part 1, and subsequent revisions)
and Guidelines for Transfers of Nuclear-Related Dual-Use
Equipment, Material, and Related Technology (published by the
International Atomic Energy Agency as Information Circular
INFCIRC/254/Rev. 3/Part 2, and subsequent revisions);
(ii) the Missile Technology Control Regime Equipment and
Technology Annex of June 11, 1996, and subsequent revisions;
(iii) the Schedules of the Convention on the Prohibition of
the Development, Production, Stockpiling and Use of Chemical
Weapons and on Their Destruction, including chemicals,
precursors, and other substances;
(iv) the lists of items and substances relating to
biological and chemical weapons the export of which is
controlled by the Australia Group; or
(v) the Wassenaar Arrangement list of Dual Use Goods and
Technologies and Munitions list of July 12, 1996, and
subsequent revisions; or
(B) prohibited or controlled for export to any covered
country under this title; and
includes any information and know-how (whether in tangible or
intangible form) that can be used to design, produce,
manufacture, utilize, improve, or reconstruct the goods,
services, or technology identified in this section.
(4) Person.--The term ``person'' includes--
(A) any individual, or partnership, corporation, business
association, society, trust, organization, or any other group
created or organized under the laws of a country; and
(B) any governmental entity.
(5) Proliferation activity.--The term ``proliferation
activity'' means the activity described in section
____03(a)(1).
(6) United states assistance.--The term ``United States
assistance'' means--
(A) any assistance under the Foreign Assistance Act of
1961, other than urgent humanitarian assistance or medicine;
(B) sales and assistance under the Arms Export Control Act;
and
(C) financing under the Export-Import Bank Act.
SEC. ____03. REPORTS ON PROLIFERATION TO ENHANCE
CONGRESSIONAL OVERSIGHT.
(a) Reports.--
(1) In general.--The President shall, at the times
specified in subsection (b), submit to the Committee on
International Relations of the House of Representatives, the
Committee on Foreign Relations of the Senate, the Committee
on Armed Services of the Senate, the Select Committee on
Intelligence of the Senate, and the Committee on Governmental
Affairs of the Senate, a report identifying every person of a
covered country for whom there is credible information
indicating that such person, on or after January 1, 2000--
(A) contributed to the design, development, production, or
acquisition of nuclear, chemical, or biological weapons or
ballistic or cruise missiles by a foreign person who is not a
national of the covered country, or otherwise engaged in any
activity prohibited under--
(i) Article I, paragraph 1, of the Chemical Weapons
Convention;
(ii) Articles I and III of the Biological Weapons
Convention; or
(iii) Articles I and III of the Treaty on the
Nonproliferation of Nuclear Weapons; or
(B) contributed to the design, development, production, or
acquisition of nuclear, chemical, or biological weapons or
ballistic or cruise missiles through the diversion of United
States goods, services, or technology.
(2) Action by persons identified.--The President shall
include in the report the activities by reported persons that
warranted inclusion in the report, and information on any
action taken by a person identified in a prior annual report
under this subsection that establishes that the person has
discontinued, rectified, or mitigated a prior proliferation
activity identified under this title.
(3) Action by president.--The President shall include in
the report information on actions taken by the President
under sections ____04 and ____05, and the reasons therefore,
in response to proliferation activities conducted by persons
identified in this section. The President shall include in
the report information on any determinations made under
section ____07. If the President fails to exercise the
authority under sections ____04 and ____05, or if the
President makes a determination under section ____07, with
respect to a person identified in a report submitted pursuant
to this section, the President shall include that information
and the reasons therefore in the report required under this
section.
(4) Other information.--In addition to the information
required by paragraphs (1) through (3), the President shall
include in the report information on--
(A) noncompliance with any international arms control,
disarmament or nonproliferation treaties, agreements,
arrangements, or commitments (verbal, written, or otherwise)
by covered countries;
(B) noncompliance with United States export control laws,
Executive orders, regulations, or export license conditions
by covered countries;
(C) the performance of the Department of Commerce in
licensing, regulating, and controlling the export of dual-use
technology to covered countries, including the number and
type of post-shipment verifications conducted and enforcement
actions taken;
(D) the threats to the national security interests of the
United States, or the security interests of its allies
resulting from--
(i) proliferation activities on the part of covered
countries or persons identified in reports submitted under
this section;
(ii) the transfer or sale to the government of, or persons
within, a covered country of dual-use technologies and goods
listed on the Commerce Control List;
(iii) the misuse or diversion by the government of a
covered country of dual-use technology; or
(iv) the transfer or sale of goods, services, or technology
identified by the Director of Central Intelligence as having
a significant potential to make a contribution to the
development, improvement, or production of nuclear,
biological, or chemical weapons, or of ballistic or cruise
missile systems; and
(E) transfers to the government of, or persons within, a
covered country under arms control, disarmament, or
nonproliferation agreements and any indication that a covered
country has engaged in a proliferation activity under the
auspices of such agreements.
(b) Timing of Reports.--The reports required under
subsection (a) shall be submitted no later than 90 days after
the date of enactment of this Act, and on June 1 of each year
thereafter.
(c) Exception.--Any person that has engaged in
proliferation activities on behalf of, or in concert with,
the Government of the United States is not required to be
identified on account of that violation in any report
submitted under this section.
(d) Submission in Classified Form.--The reports required by
this section shall be submitted in unclassified form, with
classified annexes as necessary. The President shall ensure
that appropriate procedures are in place for the protection
of sensitive intelligence sources and methods in both the
reports and the annexes.
SEC. ____04. APPLICATION OF MEASURES TO CERTAIN PERSONS.
(a) Application of Measures.--Subject to section ____07, if
the President determines that a person identified in a report
submitted pursuant to section ____03(a) has engaged in an
activity described under section ____03(a)(1) the President
shall apply to such person, for such period of time as the
President may determine but not less than 1 year, all of the
measures described in subsection (b).
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(b) Description of Measures.--The measures referred to in
subsection (a) are the following:
(1) Executive order no. 12938 prohibitions.--Imposition of
the measures set forth in subsections (b) and (c) of section
4 of Executive Order No. 12938 (as in effect on July 29,
1998).
(2) Arms export prohibition.--Prohibition on United States
Government transfers or sales to such person of any item on
the United States Munitions List as in effect on August 8,
1995, and termination of all sales and after-sale servicing
to such person of any defense articles, defense services, or
design and construction services under the Arms Export
Control Act.
(3) Dual-use export prohibition.--Denial of licenses,
suspension of existing licenses, and termination of all
transfers or sales and after-sale servicing to such person of
any item the export of which is controlled under the Export
Administration Act of 1979 (as extended pursuant to the
International Emergency Economic Powers Act) or the Export
Administration regulations.
(4) United states assistance prohibition.--Prohibition on
the provision of United States assistance in the form of
grants, loans, credits, guarantees, or otherwise, to such
person.
(5) Suspension of agreements.--Immediate suspension of any
agreements or efforts for the co-development or co-production
with such person of any item on the United States Munitions
List.
(c) Effective Date of Measures.--Each measure imposed
pursuant to subsection (a) shall take effect with respect to
such person 30 days after the date that the report
identifying the person is submitted to Congress.
(d) Publication in Federal Register.--Notice of the
imposition of the measures described in subsection (b) to a
person identified pursuant to section ____03(a) shall be
published in the Federal Register, unless the President
determines that such publication would threaten the national
security or intelligence interests of the United States.
(e) Duration of Measures.--Each measure imposed under this
section shall apply for a period of at least 12 months
following the imposition of the measure and shall cease to
apply only if the President determines and certifies to
Congress that--
(1) the person with respect to whom the determination was
made under section ____03(a) has ceased the activities for
which the measure was imposed;
(2) the person has taken reasonable steps to rectify the
violation; and
(3) the President has received reasonable assurances from
the person that such person will not engage in similar
activities in the future.
SEC. ____05. APPLICATION OF ADDITIONAL MEASURES DIRECTED AT
GOVERNMENTS OF COVERED COUNTRIES.
(a) In addition to the measures described in section ____04
applied against persons identified pursuant to section
____03(a), the President is authorized to apply additional
measures as follows against any or all of the covered
countries:
(1) Suspension of all military-to-military contacts and
exchanges between the covered country and the United States.
(2) Suspension of all United States assistance to the
covered country by the United States Government.
(3) Prohibition on United States bank loans or bond
offerings in United States markets on the part of any
national of a covered country.
(4) Prohibition on the transfer or sale or after-sale
servicing, including the provision of replacement parts, to
the covered country or any national of the covered country of
any item on the United States Munitions List and suspension
of any agreement with the covered country or any national of
the covered country for the co-development or co-production
of any item on the United States Munitions List.
(5) Suspension of all scientific, academic, and technical
exchanges between the covered country and the United States.
(6) Direction of the Export-Import Bank of the United
States not to approve the issuance of any guarantees,
insurance, extension of credit, or participation on the
extension of credit to the covered country, except for the
purchase of agricultural commodities, medicine, medical
supplies, or humanitarian assistance.
(7) Denial of access to the capital markets of the United
States by all state-owned enterprises of the covered country.
(8) Prohibition on the transfer or sale to the covered
country or any national of the covered country of any item on
the Commerce Control List that is controlled for national
security purposes and prohibition of after-sale servicing,
including the provision of replacement parts for such items.
(9) Prohibition on procurement by the United States
Government or entering into any contract for the procurement
of, any goods or services from the covered country or any
national of the covered country.
(10) Designation of the covered country in a country tier
under the Export Administration Regulations that is higher
than the country tier in effect.
(11) Denial of access to the capital markets of the United
States by any company owned or controlled by nationals of the
covered country.
(12) Prohibition on the transfer or sale to the covered
country or any national of the covered country of any item on
the Commerce Control List and prohibition of after-sale
servicing, including the provision of replacement parts for
such items.
SEC. ____06. PROCEDURES FOR CONGRESSIONAL REVIEW.
(a) Written Justification.--Any notification submitted by
the President under section ____03 indicating that the
President is not imposing a measure or exercising authority
under section ____04 or____05 or that the President is making
a determination under section ____07(a) (1) or (2) shall
include a written justification describing in detail the
facts and circumstances relating specifically to the person
identified in a report submitted pursuant to section
____03(a) that supports the President's decision not to
exercise the authority of section ____04 or ____05 or the
President's decision to make a determination under section
____07(a) (1) or (2) with respect to that person.
(b) Congressional Action.--If Congress receives a
notification described in section ____03 and does not agree
with the justification described in subsection (a), the
appropriate measure shall be imposed with respect to the
person identified in the notification if a joint resolution
described in this section is enacted into law.
(c) Joint Resolution.--
(1) Definition.--For purposes of this section, a joint
resolution means a resolution introduction by one-fifth of
the Members of either House of Congress within 90 days after
the date the notification described in section ____03 is
received, the resolving clause of which contains only the
following: ``That Congress does not agree with the
justification with respect to ____________ contained in the
notification submitted by the President pursuant to the China
Nonproliferation Act on ________ and that the President shall
exercise the mandatory measures under section ____04 of the
Act with respect to __________ .''; or ``That Congress does
not agree with the justification with respect to ________
contained in the notification submitted by the President
pursuant to the China Nonproliferation Act on ________ and
that the President shall exercise the mandatory measures
under section ____04 of the Act with respect to ________ and
1 or more measures under section ____05 of the Act.''; with
the first and third blank spaces being filled with the
appropriate person identified under section ____03(a) and
with the second blank being filled with the appropriate date.
(2) Referral to committee.--
(A) Senate.--A joint resolution introduced in the Senate
shall be referred to the Committee on Foreign Relations of
the Senate.
(B) House of representatives.--A joint resolution
introduced in the House of Representatives shall be referred
to the Committee on International Relations of the House of
Representatives.
(C) Reporting.--A joint resolution may not be reported
before the 8th day after the date on which the joint
resolution is introduced.
(3) Discharge of committee.--If the committee to which the
joint resolution is referred in either House has not reported
the joint resolution (or an identical joint resolution) at
the end of 15 calendar days during which that House is in
session after the date on which the joint resolution is
introduced--
(A) the committee shall be deemed to be discharged from
further consideration of the joint resolution; and
(B) the joint resolution shall be placed on the appropriate
calendar of that House.
(4) Floor consideration.--
(A) In general.--
(i) Motion to proceed to consideration.--When the committee
to which a joint resolution is referred in either House has
reported, or has been deemed to be discharged (under
paragraph (3)) from further consideration of, a joint
resolution--
(I) it is at any time thereafter in order (even though a
previous motion to the same effect has been disagreed to) for
any Member of that House to move to proceed to the
consideration of the joint resolution; and
(II) all points of order against the joint resolution (and
against consideration of the joint resolution) are waived.
(ii) Treatment of motion.--A motion under clause (i)--
(I) is privileged in the Senate and is highly privileged in
the House of Representatives;
(II) is not debatable; and
(III) is not subject to amendment, a motion to postpone, or
a motion to proceed to the consideration of other business.
(iii) No motion to reconsider.--A motion to reconsider the
vote by which a motion under clause (i) is agreed to or
disagreed to shall not be in order.
(iv) Agreement to motion.--If a motion under clause (i) is
agreed to, the joint resolution shall remain the unfinished
business of the House until the House disposes of the joint
resolution.
(B) Debate.--
(i) Time.--Debate on a joint resolution, and on all
debatable motions and appeals in connection with
consideration of a joint resolution, shall be limited to not
more than 10 hours, which shall be divided equally between
those favoring and those opposing the joint resolution. A
motion further to limit debate is in order and not debatable.
(ii) Amendments and motions out of order.--An amendment to
a joint resolution, a motion to postpone, to proceed to the
consideration of other business, or to recommit such a joint
resolution, or a motion to reconsider the vote by which such
a joint resolution is agreed to or disagreed is not in order.
(C) Vote on final passage.--A vote on final passage of the
joint resolution shall be
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taken in each House on or before the close of the 15th
calendar day during which that House is in session after the
resolution is reported by the committee of that House to
which it was referred, or after the committee has been
discharged from further consideration of the resolution.
(D) Rulings of the chair on procedure.--Appeals from the
decisions of the Chair relating to the application of the
rules of either House to the procedure relating to a joint
resolution shall be decided without debate.
(5) Coordination with action by other house.--
(A) In general.--If, before the passage by 1 House of a
joint resolution of that House, that House receives from the
other House a joint resolution, the procedures stated in this
paragraph shall apply.
(B) No referral.--The joint resolution of the other House
shall not be referred to a committee.
(C) Procedure.--With respect to a joint resolution of the
House receiving the joint resolution--
(i) the procedure in that House shall be the same as if no
joint resolution had been received from the other House; but
(ii) the vote on final passage shall be on the joint
resolution of the other House.
(6) Rules of the senate and the house of representatives.--
This subsection is enacted by Congress--
(A) as an exercise of the rulemaking power of the Senate
and the House of Representatives, respectively and--
(i) is deemed a part of the rules of each House,
respectively, but applicable only with respect to the
procedure to be followed in that House in the case of a joint
resolution; and
(ii) supersedes other rules only to the extent that the
subsection is inconsistent with those rules; and
(B) with full recognition of the constitutional right of
either House to change the rules (so far as the rules relate
to the procedure of that House) at any time, in the same
manner and to the same extent as in the case of any other
rule of that House.
SEC. ____07. DETERMINATION EXEMPTING PERSON OR COVERED
COUNTRY FROM SECTIONS ____04, ____05, AND
____08.
(a) In General.--Sections ____04, ____05, and ____08, shall
not apply to a person or to a covered country 15 days after
the President reports to the Committee on International
Relations of the House of Representatives, the Committee on
Foreign Relations of the Senate, the Committee on Armed
Services of the Senate, the Select Committee on Intelligence
of the Senate, and the Committee on Governmental Affairs of
the Senate, that the President has determined, on the basis
of information provided by that person or covered country, or
otherwise obtained by the President, that--
(1) the person did not, on or after January 1, 2000, engage
in proliferation activities, the apparent engagement in which
caused the person to be identified in a report submitted
pursuant to section ____03(a);
(2) the person is subject to the primary jurisdiction of a
government that is an adherent to 1 or more relevant
nonproliferation regimes, the person was identified in a
report submitted pursuant to section ____03(a) with respect
to a transfer of goods, services, or technology described in
section ____03(a)(1), and such transfer was made consistent
with the guidelines and parameters of all such relevant
regimes of which such government is an adherent; or
(3) it is important to the national security of the United
States not to apply the provisions of section ____04 or
____05.
(b) Waiver for Action by Covered Country.--Section ____05
shall not apply to a covered country 15 days after the
President reports to the Committee on International Relations
of the House of Representatives, the Committee on Foreign
Relations of the Senate, the Committee on Armed Services of
the Senate, the Select Committee on Intelligence of the
Senate, and the Committee on Governmental Affairs of the
Senate, that the President has determined, on the basis of
information provided by the covered country, or otherwise
obtained by the President, that--
(1) the covered country did not support or participate in
the proliferation activities identified pursuant to section
____03(a); and
(2) the covered country is taking reasonable steps to
penalize persons identified pursuant to section ____03(a) for
their proliferation activities and to deter and prevent
future proliferation activities.
(c) Opportunity To Provide Information.--Congress urges the
President--
(1) in every appropriate case, to contact in a timely
fashion each person identified in each report submitted
pursuant to section ____03(a) or the covered country, in
order to afford such person or covered country the
opportunity to provide explanatory, exculpatory, or other
additional information with respect to the proliferation
activities that caused such person to be identified in a
report submitted pursuant to section ____03(a); and
(2) to exercise the authority in subsection (a) in all
cases where information obtained from a person identified in
a report submitted pursuant to section ____03(a), or from the
covered country, establishes that the exercise of such
authority is warranted.
(d) Effect on Certain Exports.--Nothing in this title shall
prohibit or limit the overseas market development activities
by the United States Department of Agriculture or the export
of agricultural commodities, medicine, medical supplies, or
humanitarian assistance.
SEC. ____08. NOTIFICATION TO SECURITIES COMMISSION OF
INCLUSION IN REPORT.
(a) Definitions.--In this section, the following
definitions shall apply:
(1) Commission.--The term ``Commission'' means the
Securities and Exchange Commission.
(2) Registered national securities association.--The term
``registered national securities association'' means an
association registered under section 15A(b) of the Securities
Exchange Act of 1934 (15 U.S.C. 78o-3(b)).
(3) Registered national securities exchange.--The term
``registered national securities exchange'' means a national
securities exchange registered under section 6 of the
Securities Exchange Act of 1934 (15 U.S.C. 78f).
(4) Registration statement.--The term ``registration
statement'' has the same meaning as in section 2 of the
Securities Act of 1933 (15 U.S.C. 77b).
(5) Securities laws.--The term ``securities laws'' and
``security'' have the same meanings as in section 3 of the
Securities Exchange Act of 1934 (15 U.S.C. 78c).
(b) Notification to the Commission.--Each report prepared
by the President under section ____03 shall be transmitted to
the Commission at the times specified in section ____03(b).
(c) Regulations.--Not later than 6 months after the date of
enactment of this Act, the Commission shall promulgate
regulations--
(1) to ensure that securities investors are notified of the
identity of any person included in a report prepared by the
President under section ____03, the securities of which are
listed, or authorized for listing, on a registered national
securities exchange (or tier or segment thereof) or by a
registered national securities association; and
(2) to require each person included in a report of the
President under section ____03 to provide notice of such
inclusion in each written report, statement, or other filing
or notice required from that person under the securities
laws, including--
(A) any registration statement;
(B) any annual or quarterly report, statement, or other
filing or notice;
(C) any proxy, consent, authorization, information
statement, or other notice required to be sent to
shareholders with respect to any security registered pursuant
to the securities laws;
(D) any report, statement, or other filing or notice
required in connection with an initial public offering; and
(E) any report, statement, or other filing required in
connection with a merger, acquisition, tender offer, or
similar transaction.
SEC. ____09. NATIONAL SECURITY ASSESSMENT.
In order to ensure that the threat posed by proliferation
activity to United States national security and to American
Armed Forces deployed abroad is given adequate consideration,
the Secretary of Defense shall include as part of the
Department of Defense's Quadrennial Defense Review--
(1) an assessment of the effect on the national security of
the United States and its Armed Forces of transactions by
countries determined to be key suppliers of weapons of mass
destruction and the means to deliver those weapons;
(2) recommendations for changes in United States defense
strategy that could effectively deal with the threats posed
by the proliferation of weapons of mass destruction and the
means to deliver those weapons; and
(3) an assessment of the cost to the United States of
developing systems to address the security challenges posed
by the proliferation of weapons of mass destruction and the
means to deliver those weapons.
SEC. ____10. SENSE OF CONGRESS; POLICY.
(a) Sense of Congress.--It is the sense of Congress that--
(1) the proliferation of weapons of mass destruction,
ballistic and cruise missiles, and enabling technologies
represents a clear and serious threat to the security of the
United States, its friends and allies, and to regional and
global stability;
(2) all nations engaged in the design, development, or
production of goods, services, or technology that contribute,
or could contribute, to such proliferation, should join the
United States in eliminating proliferation by strengthening
and broadening existing multilateral nonproliferation and
export control regimes, and by strengthening their own
domestic nonproliferation and export control regimes;
(3) the President should continue to seek agreement with
countries that are considered to be significant
proliferators, to adhere to the provisions and guidelines of
existing multilateral nonproliferation and export control
regimes as responsible members of the world community, and to
strengthen their own national controls over sensitive items
and technologies;
(4) the President should fully and vigorously enforce
current United States nonproliferation and export control
laws and regulations, including the Arms Export Control Act,
the Export Administration Act, and the Iran Nonproliferation
Act; and
(5) additional budgetary and other resources should be
provided to the United States intelligence agencies charged
with detecting, assessing, and reporting incidents of
proliferation activity and technology diversion, so that the
agencies can focus greater
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attention and resources on countries identified as key
suppliers of sensitive technologies.
(b) Multilateral Control Regimes.--
(1) Policy.--It is the policy of the United States to seek
multilateral nonproliferation and export control arrangements
that support the national security objectives of the United
States.
(2) Participation in existing regimes.--Congress encourages
the United States to continue its active participation in
existing multilateral nonproliferation and export control
regimes.
(3) Strengthening existing regimes.--Congress urges the
President to strengthen existing multilateral
nonproliferation and export control regimes in order to
confront countries and entities engaged in a pattern or
practice of proliferation, by--
(A) harmonizing national laws and regulations with regard
to enforcing the provisions and guidelines of existing
multilateral nonproliferation and export control regimes;
(B) harmonizing export license approval procedures and
practices, and eliminating the practice of undercutting;
(C) periodically reviewing and updating multilateral regime
nonproliferation and export control lists with other members
of the multilateral regime, taking into account first and
foremost, national security concerns; and
(D) encouraging countries that are not members of existing
multilateral nonproliferation and export control regimes to
strengthen their national export control regimes, improve
enforcement, and adhere to the provisions and guidelines of
existing regimes, and not to undermine existing multilateral
nonproliferation and export control regimes by transferring
or exporting controlled items in a manner inconsistent with
the guidelines of the regimes.
(4) Participation in new regimes.--It is the policy of the
United States to participate in additional multilateral
export control regimes if such participation would serve the
national security interests of the United States.
(5) Enhanced cooperation with regime nonmembers.--Congress
urges the President to seek agreement among the members of
existing multilateral nonproliferation and export control
regimes to--
(A) seek the membership of nonmember countries, as
practicable, if doing so will strengthen existing regimes;
(B) seek cooperation with governments outside the regime to
abide by the provisions and guidelines established by those
regimes; and
(C) establish mechanisms in the regime to coordinate
planning and implementation of nonproliferation and export
control measures related to such cooperation.
(6) Enforcement of international norms and practices.--
Congress encourages the President to seek agreement among the
members of existing multilateral nonproliferation and export
control regimes to--
(A) pursue measures and sanctions on a multilateral basis
with respect to countries or persons found in violation of
existing multilateral nonproliferation and export control
regimes, and international norms; and
(B) prevent undercutting by foreign firms when the United
States takes unilateral action against countries or entities
found to be in violation of existing international agreements
or United States law whether or not other members of the
regimes choose to take action against those violators.
SEC. ____11. ARMS EXPORT CONTROL ACT.
Nothing in this Act shall be construed to alter or modify
the Arms Export Control Act.
______
KYL AMENDMENT NO. 4133
Mr. KYL proposed an amendment to the bill, H.R. 4444, supra; as
follows:
On page 5, line 12, after ``China'', insert ``and Taiwan as
separate customs territories''.
Mr. KYL. Mr. President, in recent days, there have been some
disturbing moves by China to block Taiwan's entry into the World Trade
Organization (WTO), despite China's previous assurances to the United
States that it would not do so. As recently as Thursday, September 7,
Chinese Foreign Ministry spokesman Sun Yuxi said that China wanted its
claim to sovereignty over Taiwan written into the terms of the WTO's
rules, stating ``The Chinese side has a consistent and clear position:
Taiwan can join WTO as a separate customs territory of China.''
This statement by China's Foreign Ministry spokesman comes on the
heels of earlier efforts by China to block Taiwan's WTO entry. As the
Wall Street Journal reported in July:
``. . . as WTO staff members draw up the so-called protocol
agreements--the reams of paper that define exactly what
concessions China will make in order to gain entry into the
organization--China is insisting that its claim over Taiwan
be recognized in the legal language . . . chief Chinese
negotiator Long Yongtu said . . . such a stand ``is a matter
of principle for us'' . . . That would upset a consensus
within the WTO that Taiwan should be allowed to enter the
club as a separate economic area--that is, not an independent
country, but also not as an explicit part of China. Some WTO
members have argued that Taiwan has long since fulfilled its
requirements to join the club and its application has been
held up only to satisfy China's demand that Taiwan shouldn't
win entry to the organization first.
In order to help ensure that China lives up to its promises to the
United States, and that Taiwan's entry to the WTO is not unnecessarily
impeded, today I am filing an amendment to H.R. 4444, the bill to
provide permanent normal trade status to China. The current text of
H.R. 4444 states that the extension of permanent normal trade relations
to China ``shall become effective no earlier than the effective date of
the accession of the People's Republic of China to the World Trade
Organization.'' My amendment would add one additional condition,
stating that permanent normal trade relations with China ``shall become
effective no earlier than the effective date of the accession of the
People's Republic of China and Taiwan as separate customs territories
to the World Trade Organization.''
My amendment reinforces the message the Clinton administration has
sent to China on previous occasions, and it is my hope that this
amendment will remove any ambiguity about America's resolve to support
Taiwan's WTO admission. Earlier this week, I received a letter from
President Clinton that responded to a letter I sent him in July along
with 30 other Senators, that sought assurances that his administration
remained committed to Taiwan's entry to the WTO. In the letter the
President stated that, ``My administration remains firmly committed to
the goal of WTO General Council approval of the accession packages for
China and Taiwan at the same session.'' The President's letter went on
to say that ``China has made clear on many occasions, and at high
levels, that it will not oppose Taiwan's accession to the
WTO. Nevertheless, China did submit proposed language to their working
party stating that Taiwan is a separate customs territory of China. We
have advised the Chinese that such language is inappropriate and
irrelevant to the work of the working party and that we will not accept
it.''
As the President acknowledged in the letter, despite previous
assurances by China and the administration that Taiwan will be admitted
to the WTO without opposition, under the surface there is a problem. As
it always does, China is using yet another diplomatic opportunity to
assert its view that Taiwan is nothing more than a province of China.
It is important for the Congress and the administration to work
together to support Taiwan's entry into the World Trade Organization
(WTO). First because of the economic benefits that its entry would
bring. Secondly, because of the need to meet our commitments to our
close and longstanding ally. And third, due to our desire to defend and
promote democratic governments, with free markets, that respect the
rule of law and the human rights of their people.
Based on its importance to the world economy, Taiwan should be
admitted to the WTO. It has the 19th largest economy and is the 14th
largest trading nation in the world. Taiwan's economy is also closely
linked to the U.S. It is America's 8th largest trading partner and
purchases more American goods than many of our other major trading
partners, like mainland China, Australia, and Italy. U.S. trade with
Taiwan should continue to grow. Over two years ago, we signed a
bilateral WTO agreement with Taiwan that included significant reduction
in tariffs and other barriers for exports of a variety of U.S. goods
and services, including agriculture goods, automotive products, and
pharmaceuticals. The admission of Taiwan to the WTO ensures that market
barriers to U.S. products will remain low and American companies will
have a means to solve disputes over intellectual property and other
matters.
Taiwan has been negotiating to become a member of the WTO since 1990
and has met the substantive conditions for membership. According to the
Congressional Research Service, it has completed agreements with each
of the 26 WTO members that requested bilateral negotiations, and has
held 10 meetings with the WTO Working Party in Geneva, resolving all
substantive issues surrounding its admission.
China has insisted that Taiwan can get into the WTO only after it
does,
[[Page S8350]]
and has lobbied other countries to support this position. In the past,
Clinton administration officials have assured us that Taiwan's
accession would closely follow China's. In February, U.S. Trade
Representative Charlene Barshefsky testified to the House of
Representatives that ``. . . the only issue with respect to Taiwan's
accession . . . pertains to timing . . . there is a tacit understanding
. . . among WTO members in general--but also, frankly, between China
and Taiwan--that China would enter first and China would not block in
any way Taiwan's accession thereafter, and that might be immediately
thereafter or within days or hours or seconds or weeks. . . .'' Later
that same month, in response to a statement by Senator Roth that ``. .
. there's a great deal of concern that Taiwan might be blocked [from
entering the WTO] once China secures such membership,'' Ambassador
Barshefsky testified that ``. . . the United States would do everything
in our power to ensure that that does not happen in any respect because
Taiwan's entry is also critical.''
The WTO plays an important role in promoting free and fair trade.
Under the WTO, member countries agree on a set of rules and principles
for trade, which in turn creates a stable and predictable trade
environment. Secondly, the WTO provides a mechanism to enforce these
rules, including a procedure for countries to resolve trade disputes.
And finally, the WTO provides a forum for negotiations to reduce trade
barriers worldwide.
Since the founding of its predecessor GATT in 1984, membership in the
organization has grown from 23 countries to 136 today. The general view
among economist is that a more predictable trade environment, and a
reduction of trade barriers, has contributed to the unprecedented
economic prosperity that most countries currently enjoy. Statistics
support this view: In 1998, world exports were 18 times larger than in
1950, and world GDP was 6 times greater in 1998 than 1950, according to
the Congressional Research Service.
As I mentioned earlier, the United States should support Taiwan's
admission to the WTO, not merely for economic reasons, but also to
honor our commitments to a close, long-standing ally, and to
demonstrate our intention to support democracies that respect the rule
of law.
When our Nation switched diplomatic recognition to mainland China, we
also enacted the 1979 Taiwan Relations Act to state our continued
commitment to the security of Taiwan. This law states, ``. . . the
United States decision to establish diplomatic relations with the
People's Republic of China rests upon the expectation that the future
of Taiwan will be determined by peaceful means.'' It goes on to say the
U.S. would ``. . . consider any effort to determine the future of
Taiwan by other than peaceful means, including by boycotts or
embargoes, a threat to the peace and security of the Western Pacific
area and of grave concern to the United States.'' And finally, it says
the U.S. will sell ``. . . defense articles and defense services in
such quantity as many be necessary to enable Taiwan to maintain a
sufficient self-defense capability.''
China's leaders have steadfastly refused to renounce the use of force
in retaking Taiwan, and have issued thinly veiled threats to use
nuclear weapons should the U.S. intervene. For example, in March, the
main newspaper of China's military said, ``China is neither Iraq nor
Yugoslavia, but a very special country . . . it is a country that has
certain abilities of launching a strategic counterattack and the
capacity of launching a long-distance strike. Probably it is not a wise
move to be at war with a country like China, a point which U.S.
policymakers know fairly well.'' Another article in a Chinese military-
owned newspaper went further, saying, ``The United States will not
sacrifice 200 million Americans for 20 million Taiwanese. They will
finally acknowledge the difficulty and withdraw.''
In outlining what became known as the ``Truman Doctrine,'' President
Harry Truman said:
At the present moment in world history nearly every nation
must choose between alternative ways of life. The choice is
too often not a free one. One way of life is based upon the
will of the majority, and is distinguished by free
institutions, representative government, free elections,
guarantees of individual liberty, freedom of speech and
religion, and freedom from political oppression. The second
way of life is based upon the will of a minority forcibly
imposed upon the majority. It relies upon terror and
oppression, a controlled press and radio, fixed elections,
and the suppression of personal freedoms. I believe that is
must be the policy of the United States to support free
peoples who are resisting attempted subjugation by armed
minorities or outside pressures. I believe that we must
assist free peoples to work out their own destinies in their
own way.
Harry Truman spoke these words in 1947, at a time when it was very
difficult to stand up to communism on the march from the Soviet Union.
The challenge we face today in dealing with China and Taiwan should not
be as great as the courageous struggle for the cold war. The United
States cannot support China's entry into the WTO without equally
supporting Taiwan's entry into the WTO. This is but one of many signals
we should be sending to the communist regime in Beijing, about
America's determination to meet our commitments and our resolve to
support Taiwan.
____________________