[Congressional Record Volume 160, Number 56 (Monday, April 7, 2014)]
[House]
[Pages H2973-H2977]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 TAIWAN RELATIONS ACT AFFIRMATION AND NAVAL VESSEL TRANSFER ACT OF 2014

  Mr. ROYCE. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 3470) to provide for the transfer of naval vessels to certain 
foreign countries, and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 3470

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

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Taiwan 
     Relations Act Affirmation and Naval Vessel Transfer Act of 
     2014''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title and table of contents.

TITLE I--AFFIRMATION OF IMPORTANCE OF TAIWAN RELATIONS ACT AND TRANSFER 
                       OF NAVAL VESSELS TO TAIWAN

Sec. 101. Statement of policy relating to Taiwan Relations Act.
Sec. 102. Transfer of naval vessels to Taiwan.

TITLE II--TRANSFER OF NAVAL VESSELS TO CERTAIN OTHER FOREIGN RECIPIENTS

Sec. 201. Findings.
Sec. 202. Transfer of naval vessels to certain other foreign 
              recipients.

             TITLE III--ARMS EXPORT CONTROL ACT AMENDMENTS

Sec. 301. Increase in congressional notification thresholds.
Sec. 302. Licensing of certain commerce-controlled items.
Sec. 303. Amendments relating to removal of major defense equipment 
              from United States Munitions List.
Sec. 304. Amendment to definition of ``security assistance'' under the 
              Foreign Assistance Act of 1961.
Sec. 305. Amendments to definitions of ``defense article'' and 
              ``defense service'' under the Arms Export Control Act.
Sec. 306. Technical amendments.

  TITLE IV--APPLICATION OF CERTAIN PROVISIONS OF EXPORT ADMINISTRATION

Sec. 401. Application of certain provisions of Export Administration 
              Act of 1979.

[[Page H2974]]

TITLE I--AFFIRMATION OF IMPORTANCE OF TAIWAN RELATIONS ACT AND TRANSFER 
                       OF NAVAL VESSELS TO TAIWAN

     SEC. 101. STATEMENT OF POLICY RELATING TO TAIWAN RELATIONS 
                   ACT.

       (a) Findings.--Congress finds the following:
       (1) The Taiwan Relations Act has been instrumental in 
     maintaining peace, security, and stability in the Western 
     Pacific since its enactment in 1979, and it is in the 
     political, security, and economic interests of the United 
     States.
       (2) The Taiwan Relations Act affirmed that the United 
     States' decision to establish a diplomatic relationship with 
     the People's Republic of China was based on the expectation 
     that the future of Taiwan would be determined by peaceful 
     means.
       (3) The Taiwan Relations Act also states that ``it is the 
     policy of the United States to provide Taiwan with arms of a 
     defensive character and to maintain the capacity of the 
     United States to resist any resort to force or other forms of 
     coercion that would jeopardize the security, or the social or 
     economic system, of the people on Taiwan''.
       (4) The Taiwan Relations Act also states that ``it is the 
     policy of the United States to preserve and promote 
     extensive, close, and friendly commercial, cultural, and 
     other relations between the people of the United States and 
     the people on Taiwan, as well as the people on the China 
     mainland and all other peoples of the Western Pacific area''.
       (5) The relationship between the United States and Taiwan 
     has been strengthened with--
       (A) Taiwan's evolution into a free society and a full-
     fledged, multi-party democracy;
       (B) the development of Taiwan's robust market economy;
       (C) Taiwan's collaboration with the United States to combat 
     terrorism, as demonstrated in part by its participation in 
     the Container Security Initiative; and
       (D) the role Taiwan has played in addressing transnational 
     and global challenges, including its active engagement in 
     humanitarian relief measures, public health endeavors, 
     environmental protection initiatives, and financial market 
     stabilization efforts.
       (6) The United States is the third largest trading partner 
     and the largest investor in Taiwan, while Taiwan is the 
     twelfth largest trading partner of the United States and the 
     eighth largest United States agricultural market.
       (7) Taiwan's democracy has deepened with the second 
     peaceful transfer of power from one political party to 
     another after the presidential election in March 2008.
       (8) The United States and Taiwan are united in our shared 
     values in free elections, personal liberty, and free 
     enterprise.
       (b) Statement of Policy.--Congress--
       (1) reaffirms its unwavering commitment to the Taiwan 
     Relations Act as the cornerstone of relations between the 
     United States and Taiwan;
       (2) reaffirms its support for Taiwan's democratic 
     institutions;
       (3) reaffirms that peace in the Taiwan Strait should be 
     maintained to the benefit of the Asia-Pacific region;
       (4) supports the United States commitment to Taiwan's 
     security in accord with the Taiwan Relations Act, including 
     Taiwan's procurement of sophisticated weapons of a defensive 
     character, such as F-16 C/Ds aircraft and diesel electric 
     submarines;
       (5) reaffirms its commitment to deepen United States-Taiwan 
     trade and investment relations as well as support for 
     Taiwan's inclusion in bilateral and regional trade agreements 
     at the appropriate time and under the right conditions in 
     which outstanding issues affecting United States exports are 
     being addressed; and
       (6) supports the strong and deepening relationship between 
     the United States and Taiwan.

     SEC. 102. TRANSFER OF NAVAL VESSELS TO TAIWAN.

       (a) Transfer by Sale.--The President is authorized to 
     transfer the OLIVER HAZARD PERRY class guided missile 
     frigates USS TAYLOR (FFG-50), USS GARY (FFG-51), USS CARR 
     (FFG-52), and USS ELROD (FFG-55) to the Taipei Economic and 
     Cultural Representative Office of the United States (which is 
     the Taiwan instrumentality designated pursuant to section 
     10(a) of the Taiwan Relations Act (22 U.S.C. 3309(a))) on a 
     sale basis under section 21 of the Arms Export Control Act 
     (22 U.S.C. 2761).
       (b) Costs of Transfers.--Any expense incurred by the United 
     States in connection with a transfer authorized by this 
     section shall be charged to the recipient notwithstanding 
     section 516(e) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2321j(e)).
       (c) Repair and Refurbishment in United States Shipyards.--
     To the maximum extent practicable, the President shall 
     require, as a condition of the transfer of a vessel under 
     this section, that the recipient to which the vessel is 
     transferred have such repair or refurbishment of the vessel 
     as is needed, before the vessel joins the naval forces of 
     that recipient, performed at a shipyard located in the United 
     States, including a United States Navy shipyard.
       (d) Expiration of Authority.--The authority to transfer a 
     vessel under this section shall expire at the end of the 3-
     year period beginning on the date of the enactment of this 
     section.

TITLE II--TRANSFER OF NAVAL VESSELS TO CERTAIN OTHER FOREIGN RECIPIENTS

     SEC. 201. FINDINGS.

       (a) Relating to Mexico.--Congress finds the following:
       (1) The partnership between the United States and Mexico 
     helps the economic and national security of both countries, 
     including in the area of energy.
       (2) The United States and Mexico share a common goal of 
     reducing the flow of narcotics and the influence of 
     transnational gangs in the Hemisphere.
       (3) The partnership between the United States and Mexico 
     helps the economic competitiveness and national security of 
     both countries.
       (4) The economies of the United States and Mexico are 
     increasingly interdependent, with bilateral foreign direct 
     investment increasing more than six-fold over the past two 
     decades.
       (5) In 2012 alone, bilateral trade in goods and services 
     between the United States and Mexico exceeded 
     $500,000,000,000.
       (6) The transfer of naval vessels to Mexico authorized 
     under section 202 supports the modernization efforts of the 
     Mexican Navy.
       (7) Such naval vessels are suitable to support Mexico's 
     offshore maritime surveillance, counter trafficking, 
     interdiction, and oil platform security.
       (8) The transfer of such naval vessels will contribute to 
     United States interests in promoting increased maritime 
     awareness to support security and protection of the people of 
     the United States and the people of Mexico.
       (b) Relating to Thailand.--Congress finds the following:
       (1) Thailand was the first treaty ally of the United States 
     in the Asia-Pacific region and remains a steadfast friend of 
     the United States.
       (2) In December 2003, the United States designated Thailand 
     as a major non-NATO ally, which improved the security of both 
     countries, particularly by facilitating joint 
     counterterrorism efforts.
       (3) For more than 30 years, Thailand has been the host 
     country of Cobra Gold, the United States Pacific Command's 
     annual multinational military training exercise, which is 
     designed to ensure regional peace and promote regional 
     security cooperation.
       (4) The Royal Thai Navy has commanded Combined Task Force 
     151 (CTF 151) of the Combined Maritime Forces, a multi-
     national naval partnership consisting of 30 nations operating 
     in and around the Gulf of Aden and off the eastern coast of 
     Somalia.
       (5) With the assistance of the Royal Thai Navy's Counter 
     Piracy Task Group, CTF 151 is helping to expressly disrupt 
     and suppress piracy, protect all vessels in the region and 
     secure their free navigation.
       (6) The Royal Thai Navy is also participating in the 
     multilateral Malacca Straits patrols with other regional 
     partners to promote maritime safety and security.
       (7) The transfer of naval vessels to Thailand authorized 
     under section 202 will support enhanced interoperability 
     between the Royal Thai Navy and United States Navy forces.
       (8) The transfer of such naval vessels underscores the 
     United States commitment to United States-Thai relations and 
     to peace and security in the Asia-Pacific region.

     SEC. 202. TRANSFER OF NAVAL VESSELS TO CERTAIN OTHER FOREIGN 
                   RECIPIENTS.

       (a) Transfers by Grant.--The President is authorized to 
     transfer vessels to foreign countries on a grant basis under 
     section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2321j), as follows:
       (1) Mexico.--To the Government of Mexico, the OLIVER HAZARD 
     PERRY class guided missile frigates USS CURTS (FFG-38) and 
     USS MCCLUSKY (FFG-41).
       (2) Thailand.--To the Government of Thailand, the OLIVER 
     HAZARD PERRY class guided missile frigates USS RENTZ (FFG-46) 
     and USS VANDEGRIFT (FFG-48).
       (b) Alternative Transfer Authority.--Notwithstanding the 
     authority provided in subsection (a) to transfer specific 
     vessels to specific countries, the President is authorized, 
     subject to the same conditions that would apply for such 
     country under this section, to transfer any vessel named in 
     this section to any country named in this section such that 
     the total number of vessels transferred to such country does 
     not exceed the total number of vessels authorized for 
     transfer to such country by this section.
       (c) Grants Not Counted in Annual Total of Transferred 
     Excess Defense Articles.--The value of a vessel transferred 
     to another country on a grant basis pursuant to authority 
     provided by subsection (a) or (b) shall not be counted 
     against the aggregate value of excess defense articles 
     transferred in any fiscal year under section 516 of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2321j).
       (d) Costs of Transfers.--Any expense incurred by the United 
     States in connection with a transfer authorized by this 
     section shall be charged to the recipient notwithstanding 
     section 516(e) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2321j(e)).
       (e) Repair and Refurbishment in United States Shipyards.--
     To the maximum extent practicable, the President shall 
     require, as a condition of the transfer of a vessel under 
     this section, that the recipient to which the vessel is 
     transferred have such repair or refurbishment of the vessel 
     as is needed, before the vessel joins the naval forces of 
     that recipient, performed at a shipyard located in the United 
     States, including a United States Navy shipyard.

[[Page H2975]]

       (f) Expiration of Authority.--The authority to transfer a 
     vessel under this section shall expire at the end of the 3-
     year period beginning on the date of the enactment of this 
     Act.

             TITLE III--ARMS EXPORT CONTROL ACT AMENDMENTS

     SEC. 301. INCREASE IN CONGRESSIONAL NOTIFICATION THRESHOLDS.

       (a) Foreign Military Sales.--
       (1) In general.--Section 36(b) of the Arms Export Control 
     Act (22 U.S.C. 2776(b)) is amended--
       (A) in paragraph (1)--
       (i) in the matter preceding subparagraph (A)--

       (I) by striking ``$50,000,000'' and inserting 
     ``$100,000,000'';
       (II) by striking ``$200,000,000'' and inserting 
     ``$300,000,000''; and
       (III) by striking ``$14,000,000'' and inserting 
     ``$25,000,000''; and

       (ii) in the matter following subparagraph (P)--

       (I) by inserting ``of any defense articles or defense 
     services under this Act for $200,000,000 or more, any design 
     and construction services for $300,000,000 or more, or any 
     major defense equipment for $75,000,000 or more,'' after 
     ``The letter of offer shall not be issued, with respect to a 
     proposed sale''; and
       (II) by inserting ``of any defense articles or services 
     under this Act for $100,000,000 or more, any design and 
     construction services for $200,000,000 or more, or any major 
     defense equipment for $50,000,000 or more,'' after ``or with 
     respect to a proposed sale''; and

       (B) in paragraph (6)--
       (i) in subparagraph (A), by striking ``$25,000,000'' and 
     inserting ``$75,000,000''; and
       (ii) in subparagraph (B), by striking ``$100,000,000'' and 
     inserting ``$200,000,000''.
       (b) Commercial Sales.--Section 36(c) of the Arms Export 
     Control Act (22 U.S.C. 2776(c)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``$14,000,000'' and inserting 
     ``$25,000,000''; and
       (B) by striking ``$50,000,000'' and inserting 
     ``$100,000,000''; and
       (2) in paragraph (5)--
       (A) in subparagraph (A), by striking ``$25,000,000'' and 
     inserting ``$75,000,000''; and
       (B) in subparagraph (B), by striking ``$100,000,000'' and 
     inserting ``$200,000,000''.

     SEC. 302. LICENSING OF CERTAIN COMMERCE-CONTROLLED ITEMS.

       Section 38 of the Arms Export Control Act (22 U.S.C. 2778) 
     is amended by adding at the end the following new subsection:
       ``(k) Licensing of Certain Commerce-Controlled Items.--
       ``(1) In general.--A license or other approval from the 
     Department of State granted in accordance with this section 
     may also authorize the export of items subject to the Export 
     Administration Regulations if such items are to be used in or 
     with defense articles controlled on the United States 
     Munitions List.
       ``(2) Other requirements.--The following requirements shall 
     apply with respect to a license or other approval to 
     authorize the export of items subject to the Export 
     Administration Regulations under paragraph (1):
       ``(A) Separate approval from the Department of Commerce 
     shall not be required for such items if such items are 
     approved for export under a Department of State license or 
     other approval.
       ``(B) Such items subject to the Export Administration 
     Regulations that are exported pursuant to a Department of 
     State license or other approval would remain under the 
     jurisdiction of the Department of Commerce with respect to 
     any subsequent transactions.
       ``(C) The inclusion of the term `subject to the EAR' or any 
     similar term on a Department of State license or approval 
     shall not affect the jurisdiction with respect to such items.
       ``(3) Definition.--In this subsection, the term `Export 
     Administration Regulations' means--
       ``(A) the Export Administration Regulations as maintained 
     and amended under the authority of the International 
     Emergency Economic Powers Act (50 U.S.C. 1701 et seq.); or
       ``(B) any successor regulations.''.

     SEC. 303. AMENDMENTS RELATING TO REMOVAL OF MAJOR DEFENSE 
                   EQUIPMENT FROM UNITED STATES MUNITIONS LIST.

       (a) Requirements for Removal of Major Defense Equipment 
     From United States Munitions List.--Section 38(f) of the Arms 
     Export Control Act (22 U.S.C. 2778(f)) is amended by adding 
     at the end the following:
       ``(5)(A) Except as provided in subparagraph (B), the 
     President shall take such actions as may be necessary to 
     require that, at the time of export or reexport of any major 
     defense equipment listed on the 600 series of the Commerce 
     Control List contained in Supplement No. 1 to part 774 of 
     subtitle B of title 15, Code of Federal Regulations, the 
     major defense equipment will not be subsequently modified so 
     as to transform such major defense equipment into a defense 
     article.
       ``(B) The President may authorize the transformation of any 
     major defense equipment described in subparagraph (A) into a 
     defense article if the President--
       ``(i) determines that such transformation is appropriate 
     and in the national interests of the United States; and
       ``(ii) provides notice of such transformation to the 
     chairman of the Committee on Foreign Affairs of the House of 
     Representatives and the chairman of the Committee on Foreign 
     Relations of the Senate consistent with the notification 
     requirements of section 36(b)(5)(A) of this Act.
       ``(C) In this paragraph, the term `defense article' means 
     an item designated by the President pursuant to subsection 
     (a)(1).''.
       (b) Notification and Reporting Requirements for Major 
     Defense Equipment Removed From United States Munitions 
     List.--Section 38(f) of the Arms Export Control Act (22 
     U.S.C. 2778(f)), as amended by this section, is further 
     amended by adding at the end the following:
       ``(6) The President shall ensure that any major defense 
     equipment that is listed on the 600 series of the Commerce 
     Control List contained in Supplement No. 1 to part 774 of 
     subtitle B of title 15, Code of Federal Regulations, shall 
     continue to be subject to the notification and reporting 
     requirements of the following provisions of law:
       ``(A) Section 516(f) of the Foreign Assistance Act of 1961 
     (22 U.S.C. 2321j(f)).
       ``(B) Section 655 of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2415).
       ``(C) Section 3(d)(3)(A) of this Act.
       ``(D) Section 25 of this Act.
       ``(E) Section 36(b), (c), and (d) of this Act.''.

     SEC. 304. AMENDMENT TO DEFINITION OF ``SECURITY ASSISTANCE'' 
                   UNDER THE FOREIGN ASSISTANCE ACT OF 1961.

       Section 502B(d) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2304(d)) is amended--
       (1) in paragraph (1), by striking ``and'' at the end; and
       (2) in paragraph (2)(C) to read as follows:
       ``(C) any license in effect with respect to the export to 
     or for the armed forces, police, intelligence, or other 
     internal security forces of a foreign country of--
       ``(i) defense articles or defense services under section 38 
     of the Armed Export Control Act; or
       ``(ii) items listed under the 600 series of the Commerce 
     Control List contained in Supplement No. 1 to part 774 of 
     subtitle B of title 15, Code of Federal Regulations;''.

     SEC. 305. AMENDMENTS TO DEFINITIONS OF ``DEFENSE ARTICLE'' 
                   AND ``DEFENSE SERVICE'' UNDER THE ARMS EXPORT 
                   CONTROL ACT.

       Section 47 of the Arms Export Control Act (22 U.S.C. 2794) 
     is amended--
       (1) in the matter preceding subparagraph (A) of paragraph 
     (3), by striking ``includes'' and inserting ``means, with 
     respect to a sale or transfer by the United States under the 
     authority of this Act or any other foreign assistance or 
     sales program of the United States''; and
       (2) in paragraph (4), by striking ``includes'' and 
     inserting ``means, with respect to a sale or transfer by the 
     United States under the authority of this Act or any other 
     foreign assistance or sales program of the United States,''.

     SEC. 306. TECHNICAL AMENDMENTS.

       (a) In General.--The Arms Export Control Act (22 U.S.C. 
     2751 et seq.) is amended--
       (1) in sections 3(a), 3(d)(1), 3(d)(3)(A), 3(e), 5(c), 6, 
     21(g), 36(a), 36(b)(1), 36(b)(5)(C), 36(c)(1), 36(f), 
     38(f)(1), 40(f)(1), 40(g)(2)(B), 101(b), and 102(a)(2), by 
     striking ``the Speaker of the House of Representatives and'' 
     each place it appears and inserting ``the Speaker of the 
     House of Representatives, the Committee on Foreign Affairs of 
     the House of Representatives, and'';
       (2) in section 21(i)(1) by inserting after ``the Speaker of 
     the House of Representatives'' the following ``, the 
     Committees on Foreign Affairs and Armed Services of the House 
     of Representatives,'';
       (3) in sections 25(e), 38(f)(2), 38(j)(3), and 38(j)(4)(B), 
     by striking ``International Relations'' each place it appears 
     and inserting ``Foreign Affairs'';
       (4) in sections 27(f) and 62(a), by inserting after ``the 
     Speaker of the House of Representatives,'' each place it 
     appears the following: ``the Committee on Foreign Affairs of 
     the House of Representatives,''; and
       (5) in section 73(e)(2), by striking ``the Committee on 
     National Security and the Committee on International 
     Relations of the House of Representatives'' and inserting 
     ``the Committee on Armed Services and the Committee on 
     Foreign Affairs of the House of Representatives''.
       (b) Other Technical Amendments.--
       (1) Arms export control act.--The Arms Export Control Act 
     (22 U.S.C. 2751 et seq.), as amended by subsection (a), is 
     further amended--
       (A) in section 38--
       (i) in subsection (b)(1), by redesignating the second 
     subparagraph (B) (as added by section 1255(b) of the Foreign 
     Relations Authorization Act, Fiscal Years 1988 and 1989 
     (Public Law 100-204; 101 Stat. 1431)) as subparagraph (C);
       (ii) in subsection (g)(1)(A)--

       (I) in clause (xi), by striking ``; or'' and inserting ``, 
     or''; and
       (II) in clause (xii)--

       (aa) by striking ``section'' and inserting ``sections''; 
     and
       (bb) by striking ``(18 U.S.C. 175b)'' and inserting ``(18 
     U.S.C. 175c)''; and
       (iii) in subsection (j)(2), in the matter preceding 
     subparagraph (A), by inserting ``in'' after ``to''; and
       (B) in section 47(2), in the matter preceding subparagraph 
     (A), by striking ``sec. 21(a),,'' and inserting ``section 
     21(a),''.
       (2) Foreign assistance act of 1961.--Section 502B of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2304) is amended--
       (A) in subsection (b), by striking ``Wherever applicable, a 
     description'' and inserting ``Wherever applicable, such 
     report shall include a description''; and

[[Page H2976]]

       (B) in subsection (d)(2)(B), by striking ``credits'' and 
     inserting ``credits)''.

  TITLE IV--APPLICATION OF CERTAIN PROVISIONS OF EXPORT ADMINISTRATION

     SEC. 401. APPLICATION OF CERTAIN PROVISIONS OF EXPORT 
                   ADMINISTRATION ACT OF 1979.

       (a) Protection of Information.--Section 12(c) of the Export 
     Administration Act of 1979 (50 U.S.C. App. 2411(c)) has been 
     in effect from August 20, 2001, and continues in effect on 
     and after the date of the enactment of this Act, pursuant to 
     the International Emergency Economic Powers Act (50 U.S.C. 
     1701 et seq.) and notwithstanding section 20 of the Export 
     Administration Act of 1979 (50 U.S.C. App. 2419). Section 
     12(c)(1) of the Export Administration Act of 1979 is a 
     statute covered by section 552(b)(3) of title 5, United 
     States Code.
       (b) Termination Date.--Subsection (a) terminates at the end 
     of the 4-year period beginning on the date of the enactment 
     of this Act.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
California (Mr. Royce) and the gentleman from Virginia (Mr. Connolly) 
each will control 20 minutes.
  The Chair recognizes the gentleman from California.


                             General Leave

  Mr. ROYCE. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days to revise and extend their remarks and to put 
any extraneous material on this measure into the Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from California?
  There was no objection.
  Mr. ROYCE. I yield myself such time as I my consume.
  Mr. Speaker, I rise in strong support of H.R. 3470. This legislation 
that I authored reaffirms the United States' steadfast support for 
Taiwan and provides the legal authority to sell naval vessels to 
Taiwan.
  I very much appreciate the bipartisan support that we have received 
from Mr. Engel and other members of the committee across the aisle. 
This legislation passed unanimously out of our committee, and the bill 
makes several changes also to improve U.S. security assistance to 
friends and allies.
  On April 10, 1979, the Taiwan Relations Act was enacted to govern 
America's relationship with the Republic of China-Taiwan. For 35 years, 
the act has helped maintain peace and security across the Taiwan Strait 
and the Asia-Pacific region.
  During this time, Taiwan has undergone a monumental transformation 
from grinding poverty and from dictatorship to, today, a vibrant 
multiparty democracy. Taiwan's economy has evolved, too, to where it is 
today, out 10th top trading partner. This week, we recognize this 35-
year transformation. Few other pieces of foreign policy legislation 
have been as consequential as the Taiwan Relations Act.
  America's support for Taiwan has allowed this island nation to 
realize its full potential. It is now more important than ever that we 
reaffirm our strong commitment to Taiwan and to the Taiwan Relations 
Act. And as chairman, I led two bipartisan delegations to Taipei, to 
Kaohsiung, and to Tainan to examine Taiwan's economy and to look at its 
defense capabilities. Today's legislation is the product of the 
committee's bipartisan effort to prioritize the U.S.-Taiwan 
relationship. By incorporating two pieces of legislation, both which 
passed the committee unanimously, the House of Representatives is now 
in a position to fulfill both the spirit and the letter of the Taiwan 
Relations Act.
  This legislation allows the President to transfer for sale four 
Perry-class guided missile frigates to Taiwan, which are greatly needed 
to augment Taiwan's defense capabilities. I have seen firsthand the 
World War II-era submarines and the 50-year-old fighter jets that form 
the core of Taiwan's military. Congress has made it clear to the 
administration that it wants more defense sales to Taiwan. These four 
ships would bolster Taiwan's defense to ensure that peace in the Taiwan 
Strait continues to benefit the entire region.
  In addition to supporting Taiwan, this legislation also authorizes 
the transfer of excess decommissioned naval vessels to Thailand and 
Mexico. These transfers help support the priorities of the U.S. Navy 
while strengthening the capability of allies and other close partners 
to meet our shared maritime security objectives.
  The bill also makes long overdue improvements to the timeliness of 
U.S. arms sales to friends and allies while maintaining appropriate 
congressional oversight. It also makes technical amendments to update 
certain notification and reporting requirements under the Arms Export 
Control Act. Finally, the bill also clarifies that certain business 
confidentiality protections of the Export Administration Act continue 
to protect information related to export licensing.
  Mr. Speaker, I reserve the balance of my time.

                                    Congress of the United States,


                                     House of Representatives,

                                    Washington, DC, April 4, 2014.
     Hon. Edward R. Royce,
     Chairman, Committee on Foreign Affairs, Rayburn House Office 
         Building, Washington, DC.
       Dear Chairman Royce: I am writing concerning H.R. 3470, 
     ``Taiwan Relations Act Affirmation and Naval Vessel Transfer 
     Act of 2014,'' Title I of which was favorably reported out of 
     your Committee on March 25, 2014 as H. Res. 494.
       As you know, H. Res. 494, which has been incorporated into 
     Section 101 of H.R. 3470, has been referred to the Committee 
     on Ways and Means. I appreciate that, in response to the 
     concerns raised by the Committee on Ways and Means concerning 
     aspects of Title I within our Committee's jurisdiction, you 
     have agreed to modify H.R. 3470 prior to its consideration in 
     the House. As a result, in order to expedite floor 
     consideration of the bill, the Committee on Ways and Means 
     will forgo action on H.R. 3470. Further, the Committee will 
     not oppose the bill's consideration on the suspension 
     calendar, based on our understanding that you will work with 
     us as the legislative process moves forward to ensure that 
     the Committee's concerns continue to be addressed. This is 
     also being done with the understanding that it does not in 
     any way prejudice the Committee with respect to the 
     appointment of conferees or its jurisdictional prerogatives 
     on this or similar legislation.
       I would appreciate your response to this letter, confirming 
     this understanding with respect to H.R. 3470, and would ask 
     that a copy of our exchange of letters on this matter be 
     included in the Congressional Record during Floor 
     consideration.
           Sincerely,
                                                        Dave Camp,
     Chairman.
                                  ____

         One Hundred Thirteenth Congress, House of 
           Representatives,
                                    Washington, DC, April 4, 2014.
     Hon. Dave Camp,
     Chairman, Committee on Ways and Means, Longworth House Office 
         Building, Washington, DC.
       Dear Chairman Camp: Thank you for agreeing to be discharged 
     from further consideration of H. Res. 494, ``Affirming the 
     importance of the Taiwan Relations Act,'' and forgoing a 
     request for a sequential referral of the suspension text for 
     H.R. 3470, ``Naval Vessel Transfer and Arms Export Control 
     Amendments Act,'' in which the text of H. Res. 494 has been 
     inserted as a new section 101. The suspension text contains 
     agreed revisions, made at your request, to content that is 
     within the Rule X jurisdiction of the Committee on Ways and 
     Means.
       I agree that your forgoing further action on these measures 
     does not in any way diminish or alter the jurisdiction of the 
     Committee on the Ways and Means, or prejudice its 
     jurisdictional prerogatives on these measures or similar 
     legislation in the future.
       I will seek to place our letters into the Congressional 
     Record during floor consideration of H.R. 3470. I appreciate 
     your cooperation regarding this legislation and look forward 
     to continuing to work with the Committee on Ways and Means as 
     this measure moves through the legislative process.
           Sincerely,
                                                  Edward R. Royce,
                                                         Chairman.

  Mr. CONNOLLY. Mr. Speaker, I yield myself such time as I may consume.
  I thank my colleague, Mr. Royce, the distinguished chairman of our 
committee, once again for his bipartisan collegiality in the workings 
of our committee, especially on this important piece of legislation.
  I want to also rise in strong support of the Taiwan Relations Act 
Affirmation and Naval Vessel Transfer Act.
  I am proud to serve, Mr. Speaker, as the cochair of the Congressional 
Taiwan Caucus, which has worked to ensure the Taiwan Relations Act 
remains the linchpin in U.S.-Taiwan relations. I am also proud of the 
fact, I would say to my friend, the chairman of our committee, that, 
since 1988, I have actually been to Taiwan 23 times and have seen 
extraordinary change over those three decades.
  Since the signing of the Taiwan Relations Act in 1979, the U.S. and 
Taiwan have forged a closer partnership to improve cultural and 
economic relations between our nations. Our partnership has been 
instrumental in maintaining

[[Page H2977]]

peace and security across the Taiwan Strait and throughout East Asia.
  While it is important to mark this historic anniversary, we also 
should take this opportunity to affirm our--that is to say the 
American--commitment. As a reflection of that, today's bill authorizes 
the President to transfer up to four surplus U.S. naval vessels to 
Taiwan. Taiwan has been a valued partner in combating global terrorism 
and delivering humanitarian relief when needed.
  China's recent declaration of an Air Defense Identification Zone and 
subsequent provocation toward other ships in the region has raised 
concerns about the possibility of escalation and provocation. That 
makes the security posture of friends like Taiwan even more precarious 
and more important and underscores the need for us to continue this 
defense partnership.
  The bill also, as the chairman indicated, authorizes the transfer of 
surplus naval vessels, two each to Mexico and Thailand, both critical 
defense partners of this Nation. These transfers will enhance the 
ability of those countries to collaborate with the U.S. Navy on joint 
or support operations. The bill also provides an overdue modernization 
of the congressional review process for the licensing of U.S. defense 
exports. Under the new criteria, congressional review will focus on 
major defense exports.
  The bill also will help advance the President's Export Control Reform 
initiative, which has long been a priority for the high-tech community 
which I am proud to represent in northern Virginia. I have been working 
with the House Foreign Affairs Committee for years to reform Federal 
export controls, which have stifled innovation in the American 
commercial defense industry and put U.S. exports at a disadvantage.
  Today's bill updates the process for congressional review of exports 
to reflect regulatory changes now being implemented by the Departments 
of State, Commerce, and Defense.
  As we celebrate the 35th anniversary of the adoption of the Taiwan 
Relations Act, I look forward to working with other friends of Taiwan 
to reaffirm America's unwavering commitment to this partnership, 
including trade and investment activities that will benefit both of our 
nations moving forward.
  Over the past 60 years, the United States-Taiwan relationship has 
undergone dramatic changes, but Taiwan's development into a robust, 
lively democracy underpins the strong U.S.-Taiwan friendship we enjoy 
today. I urge my colleagues on both sides of the aisle to join the 
chairman and me in supporting this important legislation, and I reserve 
the balance of my time.
  Mr. ROYCE. Mr. Speaker, I yield 3 minutes to the gentleman from North 
Carolina (Mr. Holding), a member of the Committee on Foreign Affairs.
  Mr. HOLDING. Mr. Speaker, let me first thank Chairman Royce for his 
steadfast leadership on the Foreign Affairs Committee on this 
legislation that we have before us today.

                              {time}  1700

  Mr. Speaker, H.R. 3470 strengthens the bilateral relationship between 
the United States and the Republic of China on Taiwan in two very 
important ways. First, it reaffirms Congress' commitment to the Taiwan 
Relations Act that for 35 years has served as the foundation of our 
relationship with the Republic of China on Taiwan. Secondly, Mr. 
Speaker, it authorizes the transfer of additional Perry-class guided 
missile frigates to Taiwan. And I should point out that I have seen 
firsthand in Taiwan the threat that the People's Republic of China 
constantly presents to Taiwan. They are there, right across a very 
short distance body of water, ready to strike at any time, so 
reaffirming our military commitment to Taiwan is critical.
  As we have seen the Chinese Government continue to escalate tensions 
in the region, Mr. Speaker, making certain that we enhance this 
security cooperation is important. As Chairman Royce pointed out, 
Taiwan is a superior trading partner with the United States. They are 
in the top 10 trading partners, and I point out that the trade with 
Taiwan represents about 500,000 jobs here in the United States.
  I would like to thank the chairman for his work to further the U.S.-
Taiwan relationship, and certainly look forward to working with him to 
determine what else we can and should be doing to support an unwavering 
ally in an increasingly important part of the world.
  My view of successful foreign policy is that your friends trust you 
and your enemies fear you, and this legislation today is a good step in 
the direction of our enemies fearing us and our friends trusting us.
  Mr. CONNOLLY. Mr. Speaker, we have no further requests for time, and 
I yield back the balance of my time.
  Mr. ROYCE. Mr. Speaker, I yield myself such time as I may consume.
  In closing, Mr. Speaker, I urge all of my colleagues to support this 
bipartisan legislation. Just as important as arms sales to Taiwan, the 
U.S. must support efforts to maintain and expand Taiwan's diplomatic 
presence. I am pleased to report to the House that legislation signed 
into law last year, another bipartisan product of this committee, 
helped Taiwan participate in the International Civil Aviation 
Organization for the first time since 1976.
  Taiwan's participation in regional trade agreements could greatly 
benefit American consumers and exporters as well.
  Mr. Speaker, Congress should be proud of the role that the Taiwan 
Relations Act has had in helping Taiwan become what it is today. Taiwan 
is a beacon of hope and democracy in a part of the world that still 
yearns for the basic freedoms that Americans and Taiwanese enjoy on a 
daily basis. As we commemorate the 35th anniversary of the Taiwan 
Relations Act, let us speak with one voice and offer our strong support 
of Taiwan.
  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 California (Mr. Royce) that the House suspend the rules 
and pass the bill, H.R. 3470, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  The title of the bill was amended so as to read: ``A bill to affirm 
the importance of the Taiwan Relations Act, to provide for the transfer 
of naval vessels to certain foreign countries, and for other 
purposes''.
  A motion to reconsider was laid on the table.

                          ____________________