[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.
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