[Congressional Record Volume 163, Number 75 (Tuesday, May 2, 2017)]
[House]
[Pages H3026-H3038]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
KOREAN INTERDICTION AND MODERNIZATION OF SANCTIONS ACT
Mr. ROYCE of California. Mr. Speaker, I move to suspend the rules and
pass the bill (H.R. 1644) to enhance sanctions with respect to
transactions relating to North Korea, and for other purposes, as
amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 1644
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Korean Interdiction and
Modernization of Sanctions Act''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
TITLE I--SANCTIONS TO ENFORCE AND IMPLEMENT UNITED NATIONS SECURITY
COUNCIL SANCTIONS AGAINST NORTH KOREA
Sec. 101. Modification and expansion of requirements for the
designation of persons.
Sec. 102. Prohibition on indirect correspondent accounts.
Sec. 103. Limitations on foreign assistance to noncompliant
governments.
Sec. 104. Amendments to enhance inspection authorities.
Sec. 105. Enforcing compliance with United Nations shipping sanctions
against North Korea.
Sec. 106. Report on cooperation between North Korea and Iran.
Sec. 107. Report on implementation of United Nations Security Council
resolutions by other governments.
Sec. 108. Briefing on measures to deny specialized financial messaging
services to designated North Korean financial
institutions.
[[Page H3027]]
TITLE II--SANCTIONS WITH RESPECT TO HUMAN RIGHTS ABUSES BY THE
GOVERNMENT OF NORTH KOREA
Sec. 201. Sanctions for forced labor and slavery overseas of North
Koreans.
Sec. 202. Modifications to sanctions suspension and waiver authorities.
Sec. 203. Reward for informants.
Sec. 204. Determination on designation of North Korea as a state
sponsor of terrorism.
TITLE III--GENERAL AUTHORITIES
Sec. 301. Authority to consolidate reports.
Sec. 302. Rule of construction.
Sec. 303. Regulatory authority.
Sec. 304. Limitation on funds.
SEC. 3. DEFINITIONS.
(a) Amendments to Definitions in the North Korea Sanctions
and Policy Enhancement Act of 2016.--
(1) Applicable executive order.--Section 3(1)(A) of the
North Korea Sanctions and Policy Enhancement Act of 2016 (22
U.S.C. 9202(1)(A)) is amended--
(A) by striking ``or Executive Order 13694'' and inserting
``Executive Order 13694''; and
(B) by inserting ``or Executive Order 13722 (50 U.S.C. 1701
note; relating to blocking the property of the Government of
North Korea and the Workers' Party of Korea, and Prohibiting
Certain Transactions With Respect to North Korea),'' before
``to the extent''.
(2) Applicable united nations security council
resolution.--Section 3(2)(A) of the North Korea Sanctions and
Policy Enhancement Act of 2016 (22 U.S.C. 9202(2)(A)) is
amended by striking ``or 2094 (2013)'' and inserting ``2094
(2013), 2270 (2016), or 2321 (2016)''.
(3) Foreign person.--Section 3 of the North Korea Sanctions
and Policy Enhancement Act of 2016 (22 U.S.C. 9202) is
amended--
(A) by redesignating paragraphs (5) through (14) as
paragraphs (6) through (15), respectively; and
(B) by inserting after paragraph (4) the following new
paragraph:
``(5) Foreign person.--The term `foreign person' means--
``(A) an individual who is not a United States citizen or
an alien lawfully admitted for permanent residence to the
United States; or
``(B) an entity that is not a United States person.''.
(4) Luxury goods.--Paragraph (9) of section 3 of the North
Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.
9202), as redesignated by paragraph (3) of this subsection,
is amended--
(A) in subparagraph (A), by striking ``and'' at the end;
(B) in subparagraph (B), by striking the period at the end
and inserting ``; and''; and
(C) by adding at the end the following new subparagraph:
``(C) also includes any items so designated under an
applicable United Nations Security Council resolution.''.
(5) North korean person.--Section 3 of the North Korea
Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.
9202), as amended by paragraph (3) of this subsection, is
further amended--
(A) by redesignating paragraphs (13) through (15) as
paragraphs (14) through (16), respectively; and
(B) by inserting after paragraph (12) the following new
paragraph:
``(13) North korean person.--The term `North Korean person'
means--
``(A) a North Korean citizen or national; or
``(B) an entity owned or controlled by the Government of
North Korea or by a North Korean citizen or national.''.
(b) Definitions for Purposes of This Act.--In this Act:
(1) Applicable united nations security council resolution;
luxury goods.--The terms ``applicable United Nations Security
Council resolution'' and ``luxury goods'' have the meanings
given those terms, respectively, in section 3 of the North
Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.
9202), as amended by subsection (a).
(2) Appropriate congressional committees; government of
north korea; united states person.--The terms ``appropriate
congressional committees'', ``Government of North Korea'',
and ``United States person'' have the meanings given those
terms, respectively, in section 3 of the North Korea
Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.
9202).
(3) Foreign person; north korean person.--The terms
``foreign person'' and ``North Korean person'' have the
meanings given those terms, respectively, in paragraph (5)
and paragraph (13) of section 3 of the North Korea Sanctions
and Policy Enhancement Act of 2016 (22 U.S.C. 9202(5) and
9202(13)), as added by subsection (a).
(4) Prohibited weapons program.--The term ``prohibited
weapons program'' means--
(A) any program related to the development of nuclear,
chemical, or biological weapons, and their means of delivery,
including ballistic missiles; and
(B) any program to develop related materials with respect
to a program described in subparagraph (A).
TITLE I--SANCTIONS TO ENFORCE AND IMPLEMENT UNITED NATIONS SECURITY
COUNCIL SANCTIONS AGAINST NORTH KOREA
SEC. 101. MODIFICATION AND EXPANSION OF REQUIREMENTS FOR THE
DESIGNATION OF PERSONS.
(a) Expansion of Mandatory Designations.--Section 104(a) of
the North Korea Sanctions and Policy Enhancement Act of 2016
(22 U.S.C. 9214(a)) is amended--
(1) in paragraph (9), by striking ``; or'' and inserting
``or any defense article or defense service (as such terms
are defined in section 47 of the Arms Export Control Act (22
U.S.C. 2794));'';
(2) by redesignating paragraph (10) as paragraph (15);
(3) by inserting after paragraph (9) the following new
paragraphs:
``(10) knowingly, directly or indirectly, purchases or
otherwise acquires from North Korea any significant amounts
of gold, titanium ore, vanadium ore, copper, silver, nickel,
zinc, or rare earth minerals;
``(11) knowingly, directly or indirectly, sells or
transfers to North Korea any significant amounts of rocket,
aviation, or jet fuel (except for use by a civilian passenger
aircraft outside North Korea, exclusively for consumption
during its flight to North Korea or its return flight);
``(12) knowingly, directly or indirectly, provides
significant amounts of fuel or supplies, provides bunkering
services, or facilitates a significant transaction or
transactions to operate or maintain, a vessel or aircraft
that is designated under an applicable Executive order or an
applicable United Nations Security Council resolution, or
that is owned or controlled by a person designated under an
applicable Executive order or applicable United Nations
Security Council resolution;
``(13) knowingly, directly or indirectly, insures,
registers, facilitates the registration of, or maintains
insurance or a registration for, a vessel owned or controlled
by the Government of North Korea, except as specifically
approved by the United Nations Security Council;
``(14) knowingly, directly or indirectly, maintains a
correspondent account (as defined in section 201A(d)(1)) with
any North Korean financial institution, except as
specifically approved by the United Nations Security Council;
or''; and
(4) in paragraph (15), as so redesignated, by striking
``(9)'' and inserting ``(14)''.
(b) Expansion of Additional Discretionary Designations.--
Section 104(b)(1) of the North Korea Sanctions and Policy
Enhancement Act of 2016 (22 U.S.C. 9214(b)(1)) is amended--
(1) in subparagraph (A), by striking ``pursuant to an
applicable United Nations Security Council resolution;'' and
inserting the following: ``pursuant to--
``(i) an applicable United Nations Security Council
resolution;
``(ii) any regulation promulgated under section 404; or
``(iii) any applicable Executive order;'';
(2) in subparagraph (B)(iii), by striking ``or'' at the
end;
(3) in subparagraph (C), by striking the period at the end
and inserting a semicolon; and
(4) by adding at the end the following new subparagraphs:
``(D) knowingly, directly or indirectly, purchased or
otherwise acquired from the Government of North Korea
significant quantities of coal, iron, or iron ore, in excess
of the limitations provided in applicable United Nations
Security Council resolutions;
``(E) knowingly, directly or indirectly, purchased or
otherwise acquired significant types or amounts of textiles
from the Government of North Korea;
``(F) knowingly facilitated a significant transfer of funds
or property of the Government of North Korea that materially
contributes to any violation of an applicable United National
Security Council resolution;
``(G) knowingly, directly or indirectly, facilitated a
significant transfer to or from the Government of North Korea
of bulk cash, precious metals, gemstones, or other stores of
value not described under subsection (a)(10);
``(H) knowingly, directly or indirectly, sold, transferred,
or otherwise provided significant amounts of crude oil,
condensates, refined petroleum, other types of petroleum or
petroleum byproducts, liquified natural gas, or other natural
gas resources to the Government of North Korea (except for
heavy fuel oil, gasoline, or diesel fuel for humanitarian use
or as excepted under subsection (a)(11));
``(I) knowingly, directly or indirectly, engaged in,
facilitated, or was responsible for the online commercial
activities of the Government of North Korea, including online
gambling;
``(J) knowingly, directly or indirectly, purchased or
otherwise acquired fishing rights from the Government of
North Korea;
``(K) knowingly, directly or indirectly, provided
significant telephonic, telegraphic, telecommunications or
other data services, in whole or in part, into or out of
North Korea, in excess of services needed for humanitarian or
diplomatic purposes (other than services that are excepted
under section 203(b)(1) of the International Emergency
Economic Powers Act (50 U.S.C. 1702(b)(1)));
``(L) knowingly, directly or indirectly, purchased or
otherwise acquired significant types or amounts of food or
agricultural products from the Government of North Korea;
``(M) knowingly, directly or indirectly, engaged in,
facilitated, or was responsible for the exportation of
workers from North Korea in a manner intended to generate
significant revenue, directly or indirectly, for use by the
Government of North Korea or by the Workers' Party of Korea;
``(N) knowingly conducted a significant transaction or
transactions in North Korea's
[[Page H3028]]
transportation, mining, energy, or financial services
industries; or
``(O) except as specifically approved by the United Nations
Security Council, and other than through a correspondent
account as described in subsection (a)(14), knowingly
facilitated the operation of any branch, subsidiary, or
office of a North Korean financial institution.''.
(c) Mandatory and Discretionary Asset Blocking.--Section
104(c) of the North Korea Sanctions and Policy Enhancement
Act of 2016 (22 U.S.C. 9214(c)) is amended--
(1) by striking ``of a designated person'' and inserting
``of a person designated under subsection (a)'';
(2) by striking ``The President'' and inserting the
following:
``(1) Mandatory asset blocking.--The President''; and
(3) by adding at the end the following new paragraph:
``(2) Discretionary asset blocking.--The President may also
exercise such powers, in the same manner and to the same
extent described in paragraph (1), with respect to a person
designated under subsection (b).''.
(d) Designation of Additional Persons.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the President shall submit to the
appropriate congressional committees a report including a
determination as to whether reasonable grounds exist, and an
explanation of the reasons for any determination that such
grounds do not exist, to designate, pursuant to section 104
of the North Korea Sanctions and Policy Enhancement Act of
2016 (22 U.S.C. 9214), as amended by this section, each of
the following:
(A) The Korea Shipowners' Protection and Indemnity
Association, a North Korean insurance company, with respect
to facilitating imports, exports, and reexports of arms and
related materiel to and from North Korea, or for other
activities prohibited by such section 104.
(B) Chinpo Shipping Company (Private) Limited, a Singapore
corporation, with respect to facilitating imports, exports,
and reexports of arms and related materiel to and from North
Korea.
(C) The Central Bank of the Democratic People's Republic of
Korea, with respect to the sale of gold to, the receipt of
gold from, or the import or export of gold by the Government
of North Korea.
(D) Kumgang Economic Development Corporation (KKG), with
respect to being an entity controlled by Bureau 39 of the
Workers' Party of the Government of North Korea.
(E) Sam Pa, also known as Xu Jinghua, Xu Songhua, Sa Muxu,
Samo, Sampa, or Sam King, and any entities owned or
controlled by such individual, with respect to transactions
with KKG.
(F) The Chamber of Commerce of the Democratic People's
Republic of Korea, with respect to the exportation of workers
in violation of section 104(a)(5) or of section 104(b)(1)(M)
of such Act, as amended by subsection (b) of this section.
(2) Form.--The report submitted under paragraph (1) may
contain a classified annex.
SEC. 102. PROHIBITION ON INDIRECT CORRESPONDENT ACCOUNTS.
(a) In General.--Title II of the North Korea Sanctions and
Policy Enhancement Act of 2016 (22 U.S.C. 9221 et seq.) is
amended by inserting after section 201 the following new
section:
``SEC. 201A. PROHIBITION ON INDIRECT CORRESPONDENT ACCOUNTS.
``(a) In General.--Except as provided in subsection (b), if
a United States financial institution has or obtains
knowledge that a correspondent account established,
maintained, administered, or managed by that institution for
a foreign financial institution is being used by the foreign
financial institution to provide significant financial
services indirectly to any person, foreign government, or
financial institution designated under section 104, the
United States financial institution shall ensure that such
correspondent account is no longer used to provide such
services.
``(b) Exception.--A United States financial institution is
authorized to process transfers of funds to or from North
Korea, or for the direct or indirect benefit of any person,
foreign government, or financial institution that is
designated under section 104, only if the transfer--
``(1) arises from, and is ordinarily incident and necessary
to give effect to, an underlying transaction that has been
authorized by a specific or general license issued by the
Secretary of the Treasury; and
``(2) does not involve debiting or crediting a North Korean
account.
``(c) Definitions.--In this section:
``(1) Correspondent account.--The term `correspondent
account' has the meaning given that term in section 5318A of
title 31, United States Code.
``(2) United states financial institution.--The term
`United States financial institution' means has the meaning
given that term in section 510.310 of title 31, Code of
Federal Regulations, as in effect on the date of the
enactment of this section.
``(3) Foreign financial institution.--The term `foreign
financial institution' has the meaning given that term in
section 1010.605 of title 31, Code of Federal Regulations, as
in effect on the date of the enactment of this section.''.
(b) Clerical Amendment.--The table of contents in section
1(b) of the North Korea Sanctions and Policy Enhancement Act
of 2016 is amended by inserting after the item relating to
section 201 the following new item:
``Sec. 201A. Prohibition on indirect correspondent accounts.''.
SEC. 103. LIMITATIONS ON FOREIGN ASSISTANCE TO NONCOMPLIANT
GOVERNMENTS.
Section 203 of the North Korea Sanctions and Policy
Enhancement Act of 2016 (22 U.S.C. 9223) is amended--
(1) in subsection (b)--
(A) in the heading, by striking ``Transactions in Lethal
Military Equipment'' and inserting ``Transactions in Defense
Articles or Defense Services'';
(B) in paragraph (1), by striking ``that provides lethal
military equipment to the Government of North Korea'' and
inserting ``that provides to or receives from the Government
of North Korea a defense article or defense service, as such
terms are defined in section 47 of the Arms Export Control
Act (22 U.S.C. 2794), if the President determines that a
significant type or amount of such article or service has
been so provided or received''; and
(C) in paragraph (2), by striking ``1 year'' and inserting
``2 years'';
(2) in subsection (d), by striking ``or emergency'' and
inserting ``maternal and child health, disease prevention and
response, or''; and
(3) by adding at the end the following new subsection:
``(e) Report on Arms Trafficking Involving North Korea.--
``(1) In general.--Not later than 180 days after the date
of the enactment of this subsection, and annually thereafter
for 5 years, the Secretary of State shall submit to the
appropriate congressional committees a report that
specifically describes the compliance of foreign countries
and other foreign jurisdictions with the requirement to
curtail the trade described in subsection (b)(1).
``(2) Form.--The report required under paragraph (1) shall
be submitted in unclassified form but may contain a
classified annex.''.
SEC. 104. AMENDMENTS TO ENHANCE INSPECTION AUTHORITIES.
Title II of the North Korea Sanctions and Policy
Enhancement Act of 2016 (22 U.S.C. 9221 et seq.), as amended
by section 102 of this Act, is further amended by striking
section 205 and inserting the following:
``SEC. 205. ENHANCED INSPECTION AUTHORITIES.
``(a) Report Required.--
``(1) In general.--Not later than 180 days after the date
of the enactment of this section, and annually thereafter for
5 years, the President shall submit to the appropriate
congressional committees a report--
``(A) identifying the operators of foreign sea ports and
airports that knowingly--
``(i) significantly fail to implement or enforce
regulations to inspect ships, aircraft, cargo, or conveyances
in transit to or from North Korea, as required by applicable
United Nations Security Council resolutions;
``(ii) facilitate the transfer, transshipment, or
conveyance of significant types or quantities of cargo,
vessels, or aircraft owned or controlled by persons
designated under applicable United Nations Security Council
resolutions; or
``(iii) facilitate any of the activities described in
section 104(a);
``(B) describing the extent to which the requirements of
applicable United Nations Security Council resolutions to de-
register any vessel owned, controlled, or operated by or on
behalf of the Government of North Korea have been implemented
by other foreign countries;
``(C) describing the compliance of the Islamic Republic of
Iran with the sanctions mandated in applicable United Nations
Security Council resolutions;
``(D) identifying vessels, aircraft, and conveyances owned
or controlled by the Reconnaissance General Bureau of the
Workers' Party of Korea; and
``(E) describing the diplomatic and enforcement efforts by
the President to secure the full implementation of the
applicable United Nations Security Council resolutions, as
described in subparagraphs (A) through (C).
``(2) Form.--The report required under paragraph (1) shall
be submitted in unclassified form but may contain a
classified annex.
``(b) Specific Findings.--Each report required under
subsection (a) shall include specific findings with respect
to the following ports and airports:
``(1) The ports of Dandong, Dalian, and any other port in
the People's Republic of China that the President deems
appropriate.
``(2) The ports of Abadan, Bandar-e-Abbas, Chabahar,
Bandar-e-Khomeini, Bushehr Port, Asaluyeh Port, Kish, Kharg
Island, Bandar-e-Lenge, and Khorramshahr, and Tehran Imam
Khomeini International Airport, in the Islamic Republic of
Iran.
``(3) The ports of Nakhodka, Vanino, and Vladivostok, in
the Russian Federation.
``(4) The ports of Latakia, Banias, and Tartous, and
Damascus International Airport, in the Syrian Arab Republic.
``(c) Enhanced Security Targeting Requirements.--
``(1) In general.--Except as provided in paragraph (2), the
Secretary of Homeland Security may, using a layered approach,
require enhanced screening procedures to determine whether
physical inspections are warranted of any cargo bound for or
landed in the United States that--
``(A) has been transported through a sea port or airport
the operator of which has
[[Page H3029]]
been identified by the President in accordance with
subsection (a)(1) as having repeatedly failed to comply with
applicable United Nations Security Council resolutions;
``(B) is aboard a vessel or aircraft, or within a
conveyance that has, within the last 365 days, entered the
territory or waters of North Korea, or landed in any of the
sea ports or airports of North Korea; or
``(C) is registered by a country or jurisdiction whose
compliance has been identified by the President as deficient
pursuant to subsection (a)(2).
``(2) Exception for food, medicine, and humanitarian
shipments.--Paragraph (1) shall not apply to any vessel,
aircraft, or conveyance that has entered the territory or
waters of North Korea, or landed in any of the sea ports or
airports of North Korea, exclusively for the purposes
described in section 208(b)(3)(B), or to import food,
medicine, or supplies into North Korea to meet the
humanitarian needs of the North Korean people.
``(d) Seizure and Forfeiture.--A vessel, aircraft, or
conveyance used to facilitate any of the activities described
in section 104(a) under the jurisdiction of the United States
may be seized and forfeited, or subject to forfeiture,
under--
``(1) chapter 46 of title 18, United States Code; or
``(2) part V of title IV of the Tariff Act of 1930 (19
U.S.C. 1581 et seq.).''.
SEC. 105. ENFORCING COMPLIANCE WITH UNITED NATIONS SHIPPING
SANCTIONS AGAINST NORTH KOREA.
(a) In General.--The Ports and Waterways Safety Act (33
U.S.C. 1221 et seq.) is amended by adding at the end the
following new section:
``SEC. 16. PROHIBITION ON ENTRY AND OPERATION.
``(a) Prohibition.--
``(1) In general.--Except as otherwise provided in this
section, no vessel described in subsection (b) may enter or
operate in the navigable waters of the United States or
transfer cargo in any port or place under the jurisdiction of
the United States.
``(2) Limitations on application.--
``(A) In general.--The prohibition under paragraph (1)
shall not apply with respect to--
``(i) a vessel described in subsection (b)(1), if the
Secretary of State determines that--
``(I) the vessel is owned or operated by or on behalf of a
country the government of which the Secretary of State
determines is closely cooperating with the United States with
respect to implementing the applicable United Nations
Security Council resolutions (as such term is defined in
section 3 of the North Korea Sanctions and Policy Enhancement
Act of 2016); or
``(II) it is in the national security interest not to apply
the prohibition to such vessel; or
``(ii) a vessel described in subsection (b)(2), if the
Secretary of State determines that the vessel is no longer
registered as described in that subsection.
``(B) Notice.--Not later than 15 days after making a
determination under subparagraph (A), the Secretary of State
shall submit to the Committee on Foreign Affairs and the
Committee on Transportation and Infrastructure of the House
of Representatives and the Committee on Foreign Relations and
the Committee on Commerce, Science, and Transportation of the
Senate written notice of the determination and the basis upon
which the determination was made.
``(C) Publication.--The Secretary of State shall publish a
notice in the Federal Register of each determination made
under subparagraph (A).
``(b) Vessels Described.--A vessel referred to in
subsection (a) is a foreign vessel for which a notice of
arrival is required to be filed under section 4(a)(5), and
that--
``(1) is on the most recent list of vessels published in
Federal Register under subsection (c)(2); or
``(2) more than 180 days after the publication of such
list, is knowingly registered, pursuant to the 1958
Convention on the High Seas entered into force on September
30, 1962, by a government the agents or instrumentalities of
which are maintaining a registration of a vessel that is
included on such list.
``(c) Information and Publication.--The Secretary of the
department in which the Coast Guard is operating, with the
concurrence of the Secretary of State, shall--
``(1) maintain timely information on the registrations of
all foreign vessels over 300 gross tons that are known to
be--
``(A) owned or operated by or on behalf of the Government
of North Korea or a North Korean person;
``(B) owned or operated by or on behalf of any country in
which a sea port is located, the operator of which the
President has identified in the most recent report submitted
under section 205(a)(1)(A) of the North Korea Sanctions and
Policy Enhancement Act of 2016; or
``(C) owned or operated by or on behalf of any country
identified by the President as a country that has not
complied with the applicable United Nations Security Council
resolutions (as such term is defined in section 3 of such
Act); and
``(2) not later than 180 days after the date of the
enactment of this section, and periodically thereafter,
publish in the Federal Register a list of the vessels
described in paragraph (1).
``(d) Notification of Governments.--
``(1) In general.--The Secretary of State shall notify each
government, the agents or instrumentalities of which are
maintaining a registration of a foreign vessel that is
included on a list published under subsection (c)(2), not
later than 30 days after such publication, that all vessels
registered under such government's authority are subject to
subsection (a).
``(2) Additional notification.--In the case of a government
that continues to maintain a registration for a vessel that
is included on such list after receiving an initial
notification under paragraph (1), the Secretary shall issue
an additional notification to such government not later than
120 days after the publication of a list under subsection
(c)(2).
``(e) Notification of Vessels.--Upon receiving a notice of
arrival under section 4(a)(5) from a vessel described in
subsection (b), the Secretary of the department in which the
Coast Guard is operating shall notify the master of such
vessel that the vessel may not enter or operate in the
navigable waters of the United States or transfer cargo in
any port or place under the jurisdiction of the United
States, unless--
``(1) the Secretary of State has made a determination under
subsection (a)(2); or
``(2) the Secretary of the department in which the Coast
Guard is operating allows provisional entry of the vessel, or
transfer of cargo from the vessel, under subsection (f).
``(f) Provisional Entry or Cargo Transfer.--Notwithstanding
any other provision of this section, the Secretary of the
department in which the Coast Guard is operating may allow
provisional entry of, or transfer of cargo from, a vessel, if
such entry or transfer is necessary for the safety of the
vessel or persons aboard.
``(g) Right of Innocent Passage and Right of Transit
Passage.--This section shall not be construed as authority to
restrict the right of innocent passage or the right of
transit passage as recognized under international law.
``(h) Foreign Vessel Defined.--In this section, the term
`foreign vessel' has the meaning given that term in section
110 of title 46, United States Code.''.
(b) Conforming Amendments.--
(1) Special powers.--Section 4(b)(2) of the Ports and
Waterways Safety Act (33 U.S.C. 1223(b)(2)) is amended by
inserting ``or 16'' after ``section 9''.
(2) Denial of entry.--Section 13(e) of the Ports and
Waterways Safety Act (33 U.S.C. 1232(e)) is amended by
striking ``section 9'' and inserting ``section 9 or 16''.
SEC. 106. REPORT ON COOPERATION BETWEEN NORTH KOREA AND IRAN.
(a) In General.--Not later than 180 days after the date of
the enactment of this Act, and annually thereafter for 5
years, the President shall submit to the appropriate
congressional committees a report that includes--
(1) an assessment of the extent of cooperation (including
through the transfer of goods, services, technology, or
intellectual property) between North Korea and Iran relating
to their respective nuclear, ballistic missile development,
chemical or biological weapons development, or conventional
weapons programs;
(2) the names of any Iranian or North Korean persons that
have knowingly engaged in or directed--
(A) the provision of material support to such programs; or
(B) the exchange of information between North Korea and
Iran with respect to such programs;
(3) the names of any other foreign persons that have
facilitated the activities described in paragraph (1); and
(4) a determination whether any of the activities described
in paragraphs (1) and (2) violate United Nations Security
Council Resolution 2231 (2015).
(b) Form.--The report required under subsection (a) shall
be submitted in unclassified form but may contain a
classified annex.
SEC. 107. REPORT ON IMPLEMENTATION OF UNITED NATIONS SECURITY
COUNCIL RESOLUTIONS BY OTHER GOVERNMENTS.
(a) In General.--Not later than 180 days after the date of
the enactment of this Act, and annually thereafter for 5
years, the President shall submit to the appropriate
congressional committees a report that evaluates the degree
to which the governments of other countries have knowingly
failed to--
(1) close the representative offices of persons designated
under applicable United Nations Security Council resolutions;
(2) expel any North Korean nationals, including diplomats,
working on behalf of such persons;
(3) prohibit the opening of new branches, subsidiaries, or
representative offices of North Korean financial institutions
within the jurisdictions of such governments; or
(4) expel any representatives of North Korean financial
institutions.
(b) Form.--The report required under subsection (a) shall
be submitted in unclassified form but may contain a
classified annex.
SEC. 108. BRIEFING ON MEASURES TO DENY SPECIALIZED FINANCIAL
MESSAGING SERVICES TO DESIGNATED NORTH KOREAN
FINANCIAL INSTITUTIONS.
(a) In General.--Not later than 180 days after the date of
the enactment of this Act, and every 180 days thereafter for
5 years, the President shall provide to the appropriate
congressional committees a briefing that includes the
following information:
[[Page H3030]]
(1) A list of each person or foreign government the
President has identified that directly provides specialized
financial messaging services to, or enables or facilitates
direct or indirect access to such messaging services for--
(A) any North Korean financial institution (as such term is
defined in section 3 of the North Korea Sanctions and Policy
Enhancement Act of 2016 (22 U.S.C. 9202)) designated under an
applicable United Nations Security Council resolution; or
(B) any other North Korean person, on behalf of such a
North Korean financial institution.
(2) A detailed assessment of the status of efforts by the
Secretary of the Treasury to work with the relevant
authorities in the home jurisdictions of such specialized
financial messaging providers to end such provision or
access.
(b) Form.--The briefing required under subsection (a) may
be classified.
TITLE II--SANCTIONS WITH RESPECT TO HUMAN RIGHTS ABUSES BY THE
GOVERNMENT OF NORTH KOREA
SEC. 201. SANCTIONS FOR FORCED LABOR AND SLAVERY OVERSEAS OF
NORTH KOREANS.
(a) Sanctions for Trafficking in Persons.--
(1) In general.--Section 302(b) of the North Korea
Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.
9241(b)) is amended--
(A) in paragraph (1), by striking ``and'' at the end;
(B) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following new paragraph:
``(3) a list of foreign persons that knowingly employ North
Korean laborers, as described in section 104(b)(1)(M).''.
(2) Additional determinations; reports.--With respect to
any country identified in section 302(b)(2) of the North
Korea Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.
9241(b)(2)), as amended by paragraph (1), the report required
under section 302(a) of such Act shall--
(A) include a determination whether each person identified
in section 302(b)(3) of such Act (as amended by paragraph
(1)) who is a national or a citizen of such identified
country meets the criteria for sanctions under--
(i) section 111 of the Trafficking Victims Protection Act
of 2000 (22 U.S.C. 7108) (relating to the prevention of
trafficking in persons); or
(ii) section 104(a) or 104(b)(1) of the North Korea
Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.
9214(a)), as amended by section 101 of this Act;
(B) be included in the report required under section 110(b)
of the Trafficking Victims Protection Act of 2000 (22 U.S.C.
7107(b)) (relating to the annual report on trafficking in
persons); and
(C) be considered in any determination that the government
of such country has made serious and sustained efforts to
eliminate severe forms of trafficking in persons, as such
term is defined for purposes of the Trafficking Victims
Protection Act of 2000.
(b) Sanctions on Foreign Persons That Employ North Korean
Labor.--
(1) In general.--Title III of the North Korea Sanctions and
Policy Enhancement Act of 2016 (22 U.S.C. 9241 et seq.) is
amended by inserting after section 302 the following new
sections:
``SEC. 302A. REBUTTABLE PRESUMPTION APPLICABLE TO GOODS MADE
WITH NORTH KOREAN LABOR.
``(a) In General.--Except as provided in subsection (b),
any significant goods, wares, articles, and merchandise
mined, produced, or manufactured wholly or in part by the
labor of North Korean nationals or citizens shall be deemed
to be prohibited under section 307 of the Tariff Act of 1930
(19 U.S.C. 1307) and shall not be entitled to entry at any of
the ports of the United States.
``(b) Exception.--The prohibition described in subsection
(a) shall not apply if the Commissioner of U.S. Customs and
Border Protection finds, by clear and convincing evidence,
that the goods, wares, articles, or merchandise described in
such paragraph were not produced with convict labor, forced
labor, or indentured labor under penal sanctions.
``SEC. 302B. SANCTIONS ON FOREIGN PERSONS EMPLOYING NORTH
KOREAN LABOR.
``(a) In General.--Except as provided in subsection (c),
the President shall designate any person identified under
section 302(b)(3) for the imposition of sanctions under
subsection (b).
``(b) Imposition of Sanctions.--
``(1) In general.--The President shall impose the sanctions
described in paragraph (2) with respect to any person
designated under subsection (a).
``(2) Sanctions described.--The sanctions described in this
paragraph are sanctions pursuant to the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to
block and prohibit all transactions in property and interests
in property of a person designated under subsection (a), if
such property and interests in property are in the United
States, come within the United States, or are or come within
the possession or control of a United States person.
``(c) Exception.--
``(1) In general.--A person may not be designated under
subsection (a) if the President certifies to the appropriate
congressional committees that the President has received
reliable assurances from such person that--
``(A) the employment of North Korean laborers does not
result in the direct or indirect transfer of convertible
currency, luxury goods, or other stores of value to the
Government of North Korea;
``(B) all wages and benefits are provided directly to the
laborers, and are held, as applicable, in accounts within the
jurisdiction in which they reside in locally denominated
currency; and
``(C) the laborers are subject to working conditions
consistent with international standards.
``(2) Recertification.--Not later than 180 days after the
date on which the President transmits to the appropriate
congressional committees an initial certification under
paragraph (1), and every 180 days thereafter, the President
shall--
``(A) transmit a recertification stating that the
conditions described in such paragraph continue to be met; or
``(B) if such recertification cannot be transmitted, impose
the sanctions described in subsection (b) beginning on the
date on which the President determines that such
recertification cannot be transmitted.''.
(2) Clerical amendment.--The table of contents in section
1(b) of the North Korea Sanctions and Policy Enhancement Act
of 2016 is amended by inserting after the item relating to
section 302 the following new items:
``Sec. 302A. Rebuttable presumption applicable to goods made with North
Korean labor.
``Sec. 302B. Sanctions on foreign persons employing North Korean
labor.''.
SEC. 202. MODIFICATIONS TO SANCTIONS SUSPENSION AND WAIVER
AUTHORITIES.
(a) Exemptions.--Section 208(a) of the North Korea
Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.
9228(a)) is amended in the matter preceding paragraph (1)--
(1) by inserting ``201A,'' after ``104,''; and
(2) by inserting ``302A, 302B,'' after ``209,''.
(b) Humanitarian Waiver.--Section 208(b) of the North Korea
Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.
9228(b)(1)) is amended--
(1) by inserting ``201A,'' after ``104,'' in each place it
appears; and
(2) by inserting ``302A, 302B,'' after ``209(b),'' in each
place it appears.
(c) Waiver.--Section 208(c) of the North Korea Sanctions
and Policy Enhancement Act of 2016 (22 U.S.C. 9228(c)) is
amended in the matter preceding paragraph (1)--
(1) by inserting ``201A,'' after ``104,''; and
(2) by inserting ``302A, 302B,'' after ``209(b),''.
SEC. 203. REWARD FOR INFORMANTS.
Section 36(b) of the State Department Basic Authorities Act
of 1956 (22 U.S.C. 2708(b)), is amended--
(1) in paragraph (9), by striking ``or'' at the end;
(2) in paragraph (10), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following new paragraphs:
``(11) the identification or location of any person who,
while acting at the direction of or under the control of a
foreign government, aids or abets a violation of section 1030
of title 18, United States Code; or
``(12) the disruption of financial mechanisms of any person
who has engaged in the conduct described in sections 104(a)
or 104(b)(1) of the North Korea Sanctions and Policy
Enhancement Act of 2016 (22 U.S.C. 2914(a) or (b)(1)).''.
SEC. 204. DETERMINATION ON DESIGNATION OF NORTH KOREA AS A
STATE SPONSOR OF TERRORISM.
(a) Determination.--
(1) In general.--Not later than 90 days after the date of
the enactment of this Act, the Secretary of State shall
submit to the appropriate congressional committees a
determination whether North Korea meets the criteria for
designation as a state sponsor of terrorism.
(2) Form.--The determination required by paragraph (1)
shall be submitted in unclassified form but may include a
classified annex, if appropriate.
(b) State Sponsor of Terrorism Defined.--For purposes of
this section, the term ``state sponsor of terrorism'' means a
country the government of which the Secretary of State has
determined, for purposes of section 6(j) of the Export
Administration Act of 1979 (50 U.S.C. 4605(j)) (as in effect
pursuant to the International Emergency Economic Powers Act),
section 620A of the Foreign Assistance Act of 1961 (22 U.S.C.
2371), section 40 of the Arms Export Control Act (22 U.S.C.
2780), or any other provision of law, is a government that
has repeatedly provided support for acts of international
terrorism.
TITLE III--GENERAL AUTHORITIES
SEC. 301. AUTHORITY TO CONSOLIDATE REPORTS.
Any reports required to be submitted to the appropriate
congressional committees under this Act or any amendment made
by this Act that are subject to deadlines for submission
consisting of similar units of time may be consolidated into
a single report that is submitted to appropriate
congressional committees pursuant to the earlier of such
deadlines. The consolidated reports must contain all
information required under this Act or any amendment made by
this Act, in addition to all other elements mandated by
previous law.
SEC. 302. RULE OF CONSTRUCTION.
Nothing in this Act shall be construed to limit--
[[Page H3031]]
(1) the authority or obligation of the President to apply
the sanctions described in section 104 of the North Korea
Sanctions and Policy Enhancement Act of 2016 (22 U.S.C.
9214), as amended by section 101 of this Act, with regard to
persons who meet the criteria for designation under such
section, or in any other provision of law; or
(2) the authorities of the President pursuant to the
International Emergency Economic Powers Act (50 U.S.C. 1701
et seq.).
SEC. 303. REGULATORY AUTHORITY.
(a) In General.--The President shall, not later than 180
days after the date of the enactment of this Act, promulgate
regulations as necessary for the implementation of this Act
and the amendments made by this Act.
(b) Notification to Congress.--Not fewer than 10 days
before the promulgation of a regulation under subsection (a),
the President shall notify and provide to the appropriate
congressional committees the proposed regulation, specifying
the provisions of this Act or the amendments made by this Act
that the regulation is implementing.
SEC. 304. LIMITATION ON FUNDS.
No additional funds are authorized to carry out the
requirements of this Act or of the amendments made by this
Act. Such requirements shall be carried out using amounts
otherwise authorized.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
California (Mr. Royce) and the gentleman from New York (Mr. Engel) each
will control 20 minutes.
The Chair recognizes the gentleman from California.
General Leave
Mr. ROYCE of California. Mr. Speaker, I ask unanimous consent that
all Members may have 5 legislative days to revise and extend their
remarks and to include extraneous material on this measure in the
Record.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from California?
There was no objection.
Mr. ROYCE of California. Mr. Speaker, I yield myself such time as I
may consume.
Mr. Speaker, I rise in support of H.R. 1644, the Korean Interdiction
and Modernization of Sanctions Act.
I want to begin by thanking the coauthor of this bill, Ranking Member
Eliot Engel, for his work on this legislation and for his steadfast
leadership that he has shown on addressing this threat to national
security. He has been in North Korea twice--I have been there once--and
he has been focused on this for a long time.
Mr. Speaker, North Korea does, in fact, pose an immediate threat to
the national security of the United States and to our allies. Experts
believe that, in less than 4 years, North Korea will have the ability
probably to target the United States with a reliable intercontinental
ballistic missile, one topped by a nuclear warhead.
The quick speed with which North Korea's program is advancing is a
game changer for our national security. It is no wonder that former
President Obama warned President Trump that North Korea would be the
top threat to the United States--and this is after the program of
strategic patience which President Obama deployed. That policy of
strategic patience, unfortunately, has not worked out. We must move
forward with something based on a plan that has worked in the past.
North Korea, now that they have conducted two nuclear weapons tests
this last year and launched a total of 26 ballistic missiles, including
one from a submarine, has reached the point where it is a threat to the
United States. In the last 2 years alone, we have seen 49 of these
tests of one kind or another as they have built out this program.
Alarmingly, with every test, North Korea gains valuable technical
knowledge that has enabled it to make significant improvements to its
developing arsenal. So as they march towards the day that it will have
the capability of striking all 50 States with an ICBM, we have been
reminded by our Chairman of the Joint Chiefs that the ``I'' in that
acronym stands for ``intercontinental,'' and he says: as from that
continent to this continent.
More immediately, these missiles gravely threaten our allies in South
Korea and Japan, and it is a threat to the tens of thousands of U.S.
servicemen serving in those countries.
North Korea has been a major proliferator, cooperating on its nuclear
and missile programs with the likes of Iran, of Syria, and of Pakistan.
I will remind the Members that they built a carbon copy of their
nuclear program in Syria on the banks of the Euphrates River. Had it
not been--had it not been--for the Israeli Defense Forces taking that
facility out some years ago, we would be wrestling right now with the
question of whether that facility was in the hands of al-Nusra or in
the hands of ISIS or in the hands of Hezbollah. They are undermining
U.S. security along with the entire global counterproliferation system,
so we can only guess the extent of the damage that is being done
through illicit, undetected networks.
Mr. Speaker, Congress has a chance to put North Korea policy on
firmer ground, and this bill, this Korean Interdiction and
Modernization of Sanctions Act, is a response to this immediate threat.
It builds upon the North Korea Sanctions and Policy Enhancement Act,
which was a bill authored by Mr. Engel and myself that was signed into
law last Congress. With this law, the United States designated North
Korea as a primary money laundering concern, cutting off their access
to cash, and found Kim Jong-un and his top lieutenants responsible for
grave human rights abuses. Indeed, the magazine The Economist
accurately described North Korea as a gulag now masquerading as a
country.
But at the same time, North Korea has worked over the past year to
evade international sanctions with the help of a vast network of front
companies, which we have now identified, and those front companies work
with governments spanning the globe. Those who do business with North
Korea provide it with money to fund the regime's nuclear program and
fund its grotesque human rights abuses, and they must be stopped.
This bill does that by expanding sanctions to deter North Korea's
nuclear programs and to enforce United Nations Security Council
resolutions. Let's be clear: these are international commitments that
all nations are obliged to honor, including China.
It targets those who employ North Korean slave labor overseas.
Companies from Senegal to Qatar to Angola import these North Korean
workers who promptly send their salary back to the regime in North
Korea, earning the regime billions of dollars in hard currency each
year.
This is money that Kim Jong-un uses to advance his nuclear and
missile program and also pay his generals, buying their loyalty to his
brutal regime. That is what the high-level defectors that I have met
with say. So let's squeeze his purse.
It cracks down on North Korean shipping and the use of international
ports, restricting the regime's ability to ship weapons and other
banned goods.
When we discover that foreign banks have helped Kim Jong-un skirt
these sanctions, as some in China have repeatedly done, then we must
give those banks and businesses a stark choice: to do business with
that regime in North Korea or the United States. As we have heard from
the new administration, this is a key focus of theirs.
So, Mr. Speaker, this legislation gives the administration powerful
new tools to protect the U.S. and our allies from the threat of North
Korean nuclear missiles by going after those who enable the regime's
aggression. This shows the world that Congress stands ready to help the
administration work with our allies and others to counter North Korea's
belligerent behavior and maintain peace and stability in Northeast
Asia.
Mr. Speaker, I urge my colleagues to vote ``yes'' on H.R. 1644, and I
reserve the balance of my time.
House of Representatives, Committee on Oversight and
Government Reform,
Washington, DC, April 24, 2017.
Hon. Edward R. Royce,
Chairman, Committee on Foreign Affairs, Washington, DC.
Dear Mr, Chairman: I write concerning H.R. 1644, the Korean
Interdiction and Modernization of Sanctions Act. As you know,
the Committee on Foreign Affairs received an original
referral and the Committee on Oversight and Government Reform
a secondary referral when the bill was introduced on March
21, 2017. I recognize and appreciate your desire to bring
this legislation before the House of Representatives in an
expeditious manner, and accordingly, the Committee on
Oversight and Government Reform will forego action on the
bill.
The Committee takes this action with our mutual
understanding that by foregoing consideration of H.R. 1644 at
this time, we do not waive any jurisdiction over the subject
matter contained in this or similar legislation. Further, I
request your support for the
[[Page H3032]]
appointment of conferees from the Committee on Oversight and
Government Reform during any House-Senate conference convened
on this or related legislation.
Finally, I would ask that a copy of our exchange of letters
on this matter be included in the bill report filed by the
Committee on Foreign Affairs, as well as in the Congressional
Record during floor consideration, to memorialize our
understanding.
Sincerely,
Jason Chaffetz,
Chairman.
____
House of Representatives,
Committee on Foreign Affairs,
Washington, DC, April 24, 2017.
Hon. Jason Chaffetz,
Chairman, Committee on Oversight and Government Reform,
Washington, DC.
Dear Mr. Chairman: Thank you for consulting with the
Foreign Affairs Committee and agreeing to be discharged from
further consideration of H.R. 1644, the Korean Interdiction
and Modernization of Sanctions Act, so that the bill may
proceed expeditiously to the House floor.
I agree that your forgoing further action on this measure
does not in any way diminish or alter the jurisdiction of
your committee, or prejudice its jurisdictional prerogatives
on this resolution or similar legislation in the future. I
would support your effort to seek appointment of an
appropriate number of conferees from your committee to any
House-Senate conference on this legislation.
I will seek to place our letters on H.R. 1644 into the
Congressional Record during floor consideration of the
resolution. I appreciate your cooperation regarding this
legislation and look forward to continuing to work together
as this measure moves through the legislative process.
Sincerely,
Edward R. Royce,
Chairman.
____
House of Representatives,
Committee on Ways and Means,
Washington, DC, April 25, 2017.
Hon. Edward R. Royce,
Chairman, Committee on Foreign Affairs, Washington, DC.
Dear Chairman Royce: I am writing with respect to H.R.
1644, the ``Korean Interdiction and Modernization of
Sanctions Act,'' on with the Committee on Ways and Means was
granted an additional referral.
In order to allow H.R. 1644 to move expeditiously to the
House floor, I agree to waive formal consideration of this
bill. The Committee on Ways and Means takes this action with
the mutual understanding that we do not waive any
jurisdiction over the subject matter contained in this or
similar legislation, and the Committee will be appropriately
consulted and involved as the bill or similar legislation
moves forward so that we may address any remaining issues
that fall within our jurisdiction. The Committee also
reserves the right to seek appointment of an appropriate
number of conferees to any House-Senate conference involving
this or similar legislation, and requests your support for
such request.
Finally, I would appreciate your response to this letter
confirming this understanding, and would ask that a copy of
our exchange of letters on this matter be included in the
Congressional Record during floor consideration of H.R. 1644.
Sincerely,
Kevin Brady,
Chairman.
____
House of Representatives,
Committee on Foreign Affairs,
Washington, DC, April 24, 2017.
Hon. Kevin Brady,
Chairman, Committee on Ways and Means, Washington, DC.
Dear Chairman Brady: Thank you for consulting with the
Foreign Affairs Committee and agreeing to be discharged from
further consideration of H.R. 1644, the Korean Interdiction
and Modernization of Sanctions Act, so that the bill may
proceed expeditiously to the House floor.
I agree that your forgoing further action on this measure
does not in any way diminish or alter the jurisdiction of
your committee, or prejudice its jurisdictional prerogatives
on this resolution or similar legislation in the future. I
would support your effort to seek appointment of an
appropriate number of conferees from your committee to any
House-Senate conference on this legislation.
I will seek to place our letters on H.R. 1644 into the
Congressional Record during floor consideration of the
resolution. I appreciate your cooperation regarding this
legislation and look forward to continuing to work together
as this measure moves through the legislative process.
Sincerely,
Edward R. Royce,
Chairman.
____
House of Representatives,
Committee on Financial Services,
Washington, DC, April 26, 2017.
Hon. Ed Royce,
Chairman, Committee on Foreign Affairs, Washington, DC.
Dear Chairman Royce: I am writing concerning H.R. 1644, the
Korean Interdiction and Modernization of Sanctions Act.
As a result of your having consulted with the Committee on
Financial Services concerning provisions in the bill that
fall within our Rule X jurisdiction, I agree to forgo action
on the bill so that it may proceed expeditiously to the House
Floor. The Committee on Financial Services takes this action
with our mutual understanding that, by foregoing
consideration of H.R. 1644 at this time, we do not waive any
jurisdiction over the subject matter contained in this or
similar legislation, and that our Committee will be
appropriately consulted and involved as this or similar
legislation moves forward so that we may address any
remaining issues that fall within our Rule X jurisdiction.
Our Committee also reserves the right to seek appointment of
an appropriate number of conferees to any House-Senate
conference involving this or similar legislation, and
requests your support for any such request.
Finally, I would appreciate your response to this letter
confirming this understanding with respect to H.R. 1644 and
would ask that a copy of our exchange of letters on this
matter be included in the Congressional Record during floor
consideration of the bill.
Sincerely,
Jeb Hensarling,
Chairman.
____
House of Representatives,
Committee on Foreign Affairs,
Washington, DC, April 26, 2017.
Hon. Jeb Hensarling,
Chairman, Committee on Financial Services, Washington, DC.
Dear Chairman Hensarling: Thank you for consulting with the
Foreign Affairs Committee and agreeing to be discharged from
further consideration of H.R. 1644, the Korean Interdiction
and Modernization of Sanctions Act, so that the bill may
proceed expeditiously to the House floor.
I agree that your forgoing further action on this measure
does not in any way diminish or alter the jurisdiction of
your committee, or prejudice its jurisdictional prerogatives
on this bill or similar legislation in the future. I would
support your effort to seek appointment of an appropriate
number of conferees from your committee to any House-Senate
conference on this legislation.
I will seek to place our letters on H.R. 1644 into the
Congressional Record during floor consideration of the bill.
I appreciate your cooperation regarding this legislation and
look forward to continuing to work together as this measure
moves through the legislative process.
Sincerely,
Edward R. Royce,
Chairman.
____
House of Representatives,
Committee on the Judiciary,
Washington, DC, April 27, 2017.
Hon. Edward R. Royce,
Chairman, Committee on Foreign Affairs, Washington, DC.
Dear Chairman Royce: I write with respect to H.R. 1644, the
``Korean Interdiction and Modernization of Sanctions Act.''
As a result of your having consulted with us on provisions
within H.R. 1644 that fall within the Rule X jurisdiction of
the Committee on the Judiciary, I forego any further
consideration of this bill so that it may proceed
expeditiously to the House floor for consideration.
The Judiciary Committee takes this action with our mutual
understanding that by foregoing consideration of H.R. 1644 at
this time, we do not waive any jurisdiction over subject
matter contained in this or similar legislation and that our
committee will be appropriately consulted and involved as
this bill or similar legislation moves forward so that we may
address any remaining issues in our jurisdiction. Our
committee also reserves the right to seek appointment of an
appropriate number of conferees to any House-Senate
conference involving this or similar legislation and asks
that you support any such request.
I would appreciate a response to this letter confirming
this understanding with respect to H.R. 1644 and would ask
that a copy of our exchange of letters on this matter be
included in the Congressional Record during floor
consideration of H.R. 1644.
Sincerely,
Bob Goodlatte,
Chairman.
____
House of Representatives,
Committee on Foreign Affairs,
Washington, DC, April 26, 2017.
Hon. Bob Goodlatte,
Chairman, Committee on the Judiciary, Washington, DC.
Dear Chairman Goodlatte: Thank you for consulting with the
Foreign Affairs Committee and agreeing to be discharged from
further consideration of H.R. 1644, the Korean Interdiction
and Modernization of Sanctions Act, so that the bill may
proceed expeditiously to the House floor.
I agree that your forgoing further action on this measure
does not in any way diminish or alter the jurisdiction of
your committee, or prejudice its jurisdictional prerogatives
on this bill or similar legislation in the future. I would
support your effort to seek appointment of an appropriate
number of conferees from your committee to any House-Senate
conference on this legislation.
I will seek to place our letters on H.R. 1644 into the
Congressional Record during floor consideration of the
measure. I appreciate your cooperation regarding this
legislation
[[Page H3033]]
and look forward to continuing to work together as this
measure moves through the legislative process.
Sincerely,
Edward R. Royce,
Chairman.
____
House of Representatives, Committee on Transportation and
Infrastructure,
Washington, DC, April 26, 2017.
Hon. Ed Royce,
Chairman, Committee on Foreign Affairs, Washington, DC.
Dear Chairman Royce: I write concerning H.R. 1644, the
``Korean Interdiction and Modernization of Sanctions Act.''
This legislation includes matters that fall within the Rule X
jurisdiction of the Committee on Transportation and
Infrastructure.
In order to expedite Floor consideration of H.R. 1644, the
Committee on Transportation and Infrastructure will forgo
action on this bill. However, this is conditional on our
mutual understanding that forgoing consideration of the bill
does not prejudice the Committee with respect to the
appointment of conferees or to any future jurisdictional
claim over the subject matters contained in the bill or
similar legislation that fall Within the Committee's Rule X
jurisdiction. I request you urge the Speaker to name members
of the Committee to any conference committee named to
consider such provisions.
Please place a copy of this letter and your response
acknowledging our jurisdictional interest into the committee
report on H.R. 1644 and in the Congressional Record during
House Floor consideration of the bill. Thank you for working
with us on this bill, and I look forward to working with the
Committee on Foreign Affairs as the bill moves through the
legislative process.
Sincerely,
Bill Shuster,
Chairman.
____
House of Representatives,
Committee on Foreign Affairs,
Washington, DC, April 26, 2017.
Hon. Bill Shuster,
Chairman, Committee on Transportation and Infrastructure,
Washington, DC.
Dear Mr. Chairman: Thank you for consulting with the
Foreign Affairs Committee and agreeing to be discharged from
further consideration of H.R. 1644, the Korean Interdiction
and Modernization of Sanctions Act, so that the bill may
proceed expeditiously to the House floor.
I agree that your forgoing further action on this measure
does not in any way diminish or alter the jurisdiction of
your committee, or prejudice its jurisdictional prerogatives
on this bill or similar legislation in the future. I would
support your effort to seek appointment of an appropriate
number of conferees from your committee to any House-Senate
conference on this legislation.
I will seek to place our letters on H.R. 1644 into the
Congressional Record during floor consideration of the bill.
I appreciate your cooperation regarding this legislation and
look forward to continuing to work together as this measure
moves through the legislative process.
Sincerely,
Edward R. Royce,
Chairman.
{time} 1500
Mr. ENGEL. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in strong support of this legislation, and let me
start by thanking our chairman on the Foreign Affairs Committee, Ed
Royce from California. His personal commitment to this important issue
is reflected by his long track record and leadership in crafting the
legislation before us today. We have had innumerable talks about North
Korea and the threat through the years. Ed Royce has always been there
at the forefront in this very important issue.
I am proud to be the lead Democratic cosponsor of the bill. We stand
on the floor today speaking in a unified, bipartisan voice about the
threat that North Korea and the Kim regime pose to the United States,
to our friend and allies, and to peace and stability across the globe.
Already, Mr. Speaker, North Korea poses a potentially catastrophic
danger to our closest allies in Northeast Asia: Japan and South Korea.
With each passing day, the reclusive regime in Pyongyang continues to
make progress on nuclear and ballistic missile technology that could
reach American soil.
This isn't a laughing matter. This isn't a matter about something
that might happen. This is a matter about something that will happen,
unless we take steps to prevent it from happening.
American administrations of both parties have tried and failed to
curb the dangerous behavior of the Kim regime. Before Kim, you had his
father and his grandfather before him. There is plenty of blame to go
around for how we got here, but rehashing past mistakes won't get us
anywhere. Instead, the United States and other global powers need to
focus on this challenge before it is too late.
However, I fear that the administration's inconsistency in recent
weeks has thrown fuel to the fire. We have seen the White House blow
hot and cold on the potential for talks with Pyongyang. We have seen
careless rhetoric alienate South Korea, a critical ally whose
partnership is essential in trying to contain North Korea.
One week we see saber rattling toward North Korea, including the
false claim that an aircraft carrier battle group was headed toward the
Korean Peninsula, and the next week, the President saying he would be
``honored'' to meet with ``smart cookie'' Kim Jong-un, the latest in a
long list of totalitarian strongmen who seem to have won the
President's admiration.
We are sending mixed signals, Mr. Speaker, and the world is taking
notice. Inconsistency on national security matters is not a foreign
policy strategy that will succeed. When America appears confused or
unmoored, it emboldens our adversaries and gives our friends and allies
pause. When we are talking about nuclear weapons, there is simply no
margin for error.
Fortunately, in this Congress, our priorities are clear: work with
China and our close partners in the region and dial up pressure on the
Kim regime to return to the negotiating table.
Last year, under Chairman Royce's leadership, we passed a sanctions
bill that President Obama signed into law.
Kim Jong-un is exceedingly crafty: his regime is becoming
increasingly effective at invading international sanctions.
When we make sanctions tougher, they come up with new ways to get
around them: phony bank accounts, fake companies overseas, shipments
under foreign flags.
We need to go back to the well to close the loopholes that the regime
exploits. That is what this measure does. It dials up sanctions on
those who do business with the Kim regime, hopefully, making them think
twice before providing cover to one of the most brutal human rights
abusers in the world and the nuclear ambitions of the leader of that
country.
If you buy certain materials like metals or minerals from North
Korea, if you sell fuel that the North Korean military can use, if you
have a role in maintaining overseas bank accounts or insuring the ships
Pyongyang uses to evade the law, then you are going to get caught up in
these new sanctions.
If you ignore the U.N.'s limits on important North Korean coal or
iron, or try to buy cheap textiles or fishing rights from the
government, or help the Kim regime conduct business online, you will be
subject to additional scrutiny with this legislation.
With this bill, we will target those who use North Korean forced
labor, a gross human rights abuse and a cash cow for the regime. We
will consider limiting certain types of assistance to countries buying
or selling American equipment to Pyongyang.
In light of the recent public assassination of Kim's half brother,
and other nefarious activities, we require the State Department to take
a hard look at whether North Korea should be put back on the State
Sponsors of Terrorism list.
The Kim regime must be made to understand that we will not back down
in our effort to cut off support for its dangerous activities. Every
time they cut another corner, we will put up another roadblock. We will
come after them again and again until they realize there is no option
but to sit down and negotiate.
As we have seen, it won't be an easy process. Making real progress on
complex global issues rarely is. Reckless threats and bombastic talk
usually make matters worse, especially when you are dealing with an
unpredictable and impulsive leader.
The stakes are very high. No one wants to see war on the Korean
Peninsula, least of all the 25 million people in Seoul and the nearly
30,000 United States troops who are in Pyongyang's sights every single
day.
We need to remain focused, with clarity of purpose, in order to get
the results we all want. This bipartisan bill builds on our record in
the House of grappling with this challenge. I am
[[Page H3034]]
glad to join with Chairman Royce in this effort. I fully support this
bill.
Mr. Speaker, I reserve the balance of my time.
Mr. ROYCE of California. Mr. Speaker, I yield 2 minutes to the
gentleman from Ohio (Mr. Chabot), a senior member of the Committee on
Foreign Affairs.
Mr. CHABOT. Mr. Speaker, I thank the gentleman for yielding.
Mr. Speaker, I rise today in support of H.R. 1644, the Korean
Interdiction and Modernization of Sanctions Act.
Kim Jong-un murdered his uncle. He murdered his brother. He and his
father and grandfather were responsible for the deaths of hundreds of
thousands, probably millions, of their own people. Now this ruthless
tyrant is trying to develop long-range nuclear weapons that very soon
could reach the United States.
Let me be clear: North Korea is a threat to the security of the
United States of America. It is a threat to our allies. It is a threat
to the world. As long as North Korea has nuclear weapons, the world is
not safe.
For far too long, we have done very little to deter the Kim regime's
persistent march in the development of its nuclear weapons program.
That changes today.
The Kim regime's nuclear program lives and dies by its access to hard
currency. North Korea acquires that hard currency from various sources.
We know that China is the worst offender. But China is not the only bad
actor. Terrorist networks around the world purchase weapons,
technology, and training from North Korea. North Korea, in exchange,
gets that money, the hard currency that it needs.
Autocrats like the Congo's Joseph Kabila have long reasoned that no
one would actually enforce the arms embargo currently against North
Korea. They continue to support the Kim regime and its nuclear program
with no consequence.
This bill would put a stop to that. It requires that the President
cut off bad actors from our financial system. No more transactions in
dollars. No more using banks that serve U.S. customers. The Kim regime
will know that we are finally serious.
I want to thank Chairman Royce for his leadership on this, Ranking
Member Engel, and also Subcommittee Chairman Mr. Yoho and Ranking
Member Sherman for their leadership.
This is critical legislation. North Korea has been getting away with
murder, literally, for far too long in their own country. We need to
make sure that hundreds of thousands--perhaps millions--of Americans'
lives are not wiped out by North Korea sometime in the very near future
if we do not push back and actually stop their nuclear weapons program,
particularly the ballistic missile system that they are trying to
develop.
Mr. ENGEL. Mr. Speaker, I yield 3 minutes to the gentleman from
California (Mr. Sherman), the ranking member of the Asia and the
Pacific Subcommittee of the Foreign Affairs Committee.
Mr. SHERMAN. Mr. Speaker, I rise in strong support of H.R. 1644, the
Korean Interdiction and Modernization of Sanctions Act.
This bill was introduced by the chair and ranking member of the full
committee, Mr. Royce and Mr. Engel; by the chair and ranking member of
the Asia and the Pacific Subcommittee, Mr. Yoho; and myself. It is a
clear example of the way bipartisanship should be here in the House of
Representatives.
North Korea continues to act as a state sponsor of terrorism, test
ballistic missiles, conduct cyber warfare, build nuclear weapons, and
threaten the United States and our allies.
We need a strategy to confront North Korea. An essential part of that
strategy is to confront North Korea with economic and political
pressure. A key to that would be to get China fully on board and to be
willing to threaten China with tariffs if China continued to serve as
the lifeline for the North Korean criminal regime. In addition to
working with China, we need to start modernizing our own sanctions
regime to impose a greater cost on Kim Jong-un.
This bill expands the North Korea Sanctions and Policy Enhancement
Act passed by this Congress in 2016 to provide expanded and mandatory
and discretionary sanctions on the North Korean Government,
particularly involving gold and other precious minerals, jet fuel,
coal, iron ore, and textiles.
The bill requires U.S. financial institutions to ensure that no
correspondent accounts are being used by foreign financial institutions
to provide financial services to North Korea. It does a host of other
necessary things, including requiring the State Department to submit to
Congress a report detailing their decision on whether to put North
Korea back on the State Sponsors of Terrorism list, and that we get
that report within 90 days.
It seems clear to me that North Korea should be listed as a state
sponsor of terror. We took them off the list not because they stopped
engaging in international terror, but as a quid pro quo for suspending
their own nuclear program, which they didn't suspend.
So why are they still off the list?
There is no doubt that North Korea has engaged in multiple acts of
international terrorism, including the murder of the half brother of
Kim Jong-un; the cyber attack against Sony Pictures; and although the
initial action was taken decades ago, they seized Japanese civilians in
order to learn Japanese manners in order to instruct their spies. They
continue to hold those Japanese civilians today in a continuing act of
terrorism.
Finally, the bill, requires a report from the President of
cooperation between North Korea and Iran. We would suspect that North
Korea, after it builds a certain cache of nuclear weapons, would be
willing to sell to Iran not for millions but for billions of dollars
fully assembled nuclear weapons or the fissile material to create
those. This is an important thing Congress needs to address.
Mr. ROYCE of California. Mr. Speaker, I yield 2 minutes to the
gentleman from South Carolina (Mr. Wilson), a senior member of the
Committee on Foreign Affairs, who also chairs the Armed Services
Subcommittee on Emerging Threats and Capabilities.
Mr. WILSON of South Carolina. Mr. Speaker, I appreciate Mr. Royce's
determined leadership on this important issue of national security
protecting American families.
I am in strong support of H.R. 1644, the Korean Interdiction and
Modernization of Sanctions Act. In 2003, I traveled to Pyongyang, North
Korea, with the ranking member, Congressman Eliot Engel, in a
bipartisan delegation, along with Congressman Curt Weldon, Chairman
Jeff Miller, Silvestre Reyes, and Solomon Ortiz, where we saw firsthand
the tyranny and oppression of the Communist regime.
Last month, the House of Representatives overwhelmingly passed H.
Res. 92, a bipartisan resolution I introduced condemning the regime in
North Korea for their recent ballistic missiles, and called for the
consideration of all available sanctions. It passed 398-3.
Since then, North Korea has continued testing missiles and released
yet another propaganda video--this one simulating the destruction of
American troops, aircraft, warships, and even the U.S. Capitol
Building.
After 8 years of ``strategic patience,'' I appreciate the strong
leadership of President Trump and his administration, along with the
Ambassador to the U.N., Nikki Haley, and also Secretary of State Rex
Tillerson.
It is clear the regime in North Korea will only respond to strength,
and these sanctions that are proposed in this package would effectively
target the regime and any other individuals who would do business with
North Korea, especially in the shipping and financial industries.
I appreciate the extraordinary leadership of Chairman Ed Royce and
Ranking Member Eliot Engel on the legislation, and I urge my colleagues
to vote in support.
{time} 1515
Mr. ENGEL. Mr. Speaker, before I call on the next speaker, I want to
talk to the gentleman from South Carolina (Mr. Wilson). When we went on
that trip to North Korea, I am sure that he will remember that he took
a clandestine picture of a big billboard that was in Pyongyang showing
a North Korean soldier with a bayonet sticking through an American
soldier's head. So the propaganda and the anti-American
[[Page H3035]]
rhetoric is ingrained, it is taught, and it was very disconcerting. I
remember the gentleman sitting in the front of the bus very
clandestinely taking that picture so no one would know. It was really a
good thing to do. I want to thank the gentleman.
Mr. WILSON of South Carolina. Will the gentleman yield?
Mr. ENGEL. I yield to the gentleman from South Carolina.
Mr. WILSON of South Carolina. Mr. Speaker, it was my honor to be with
Ranking Member Eliot Engel.
Mr. ENGEL. Mr. Speaker, I yield 2 minutes to the gentleman from
Massachusetts (Mr. Keating), the ranking member of the Subcommittee on
Terrorism, Nonproliferation, and Trade of the Committee on Foreign
Affairs.
Mr. KEATING. Mr. Speaker, I rise in strong support of H.R. 1644, the
Korean Interdiction and Modernization of Sanctions Act. I thank the
chairman of the committee, the gentleman from California (Mr. Royce);
and the ranking member, the gentleman from New York (Mr. Engel), for
their leadership in this important legislation.
This legislation furthers North Korea's severe financial isolation by
further targeting banks and money lenders to gain cooperation
throughout the region. This bipartisan bill builds on the pressure and
sanctions imposed under both the Bush and Obama administrations to
strengthen our response to North Korea's continued belligerence by,
number one, expanding sanctions on North Korea's government
transactions involving precious metals, minerals, jet fuel, and coal;
providing restrictions on U.S. foreign assistance to any country that
buys or sells military equipment from North Korea; and provides
increasing scrutiny of North Korean shipping vessels to target against
trafficking, counterfeiting, and aspects of North Korea's illicit
economy, among other things, in order to tighten sanctions in
accordance with the United Nations Security Council. This vote comes at
a critical juncture. Despite rounds of sanctions aimed at squeezing the
faltering economy of North Korea, recent reports from the peninsula
suggest that the country continues to gain sufficient traction to move
forward.
North Korea poses a real and immediate threat to the stability in the
region, to our allies, and to ourselves. By broadening eligibility
activities to be sanctioned and extending the duration of sanctions to
prevent arms trade, this bill will further leverage the North Korean
economy to enhance our ability to reduce its nuclear threat. What is
more, this bill will strengthen our ability to hinder trade between
North Korea's strongest partners, including businesses and banks within
Russia and China that are exposed to the international financial
market. In the face of growing uncertainty and seeming lack of clarity
surrounding the current administration's plan toward North Korea, this
act demonstrates the strong, bipartisan, and resolute stance of this
Congress in the face of increased provocative and aggressive actions by
North Korea.
As an original sponsor of the unprecedented legislation signed into
law last year that sanctioned North Korea for its egregious human
rights violations, I am proud to now support this critical legislation
and urge my colleagues to do the same.
Mr. ROYCE of California. Mr. Speaker, I yield 2\1/2\ minutes to the
gentleman from Texas (Mr. Poe), the chairman of the Subcommittee on
Terrorism, Nonproliferation, and Trade of the Committee on Foreign
Affairs.
Mr. POE of Texas. Mr. Speaker, I thank the chairman and ranking
member for sponsoring this legislation.
Mr. Speaker, a few years ago, North Korea ordered its missile units
on standby to strike the United States. Little Kim, as I call him, and
his generals convened a press conference and displayed a chart of what
they called U.S. mainland strike plan.
The attack plan targeted several major United States population
centers, including Austin, Texas. Mr. Speaker, I am personally offended
by that. At the time of this plan, it was ridiculed by international
media. After all, the administration was pursuing a passive strategic
patience plan.
But now experts say that, in less than 4 years, North Korea will have
intercontinental ballistic missiles capable of raining down nuclear
weapons on the entire United States. North Korea is making steady
progress on its nuclear program. It conducted two nuclear tests in 2016
alone.
So the time has come to tighten the noose on little Kim. We need to
choke off the sources of his ill-gotten gain, and these sanctions will
help do that. This bill expands sanctions to target some of the
regime's most lucrative sources of revenue. It also requires the State
Department to reassess whether North Korea should be placed back on the
State Sponsors of Terrorism list. I think that is long overdue.
Little Kim has earned the distinction of being a worldwide terrorist.
So little Kim means it when he says he wants to destroy the United
States. He even wants to put ICBMs in submarines and send them off the
coast of California. He cannot be allowed to do this mischief. He needs
to know the United States means it when we say that we will protect the
American people.
And that is just the way it is.
Mr. ENGEL. Mr. Speaker, I yield 2 minutes to the gentleman from
Virginia (Mr. Connolly), my friend, co-chair of the Korea Caucus, and a
respected member of the Committee on Foreign Affairs.
Mr. CONNOLLY. Mr. Speaker, I thank my good friend from New York, our
very distinguished ranking member.
I rise today in support of H.R. 1644, the Korean Interdiction and
Modernization of Sanctions Act. I am pleased to cosponsor this bill, an
act that updates and expands the North Korea sanctions policy that was
enacted just last year. It is undeniable that North Korea's nuclear and
ballistic missile programs have accelerated in recent years. In 2016
alone, the regime conducted two nuclear tests and more than 20 missile
tests.
In response to this threat, the U.S. helped negotiate the passage of
the U.N. Security Council Resolutions 2270 and 2231 to strengthen U.N.
sanctions against the regime. H.R. 1644 builds on those Security
Council resolutions by expanding mandatory and discretionary sanctions
and authorizing new sanctions provisions related to evasion and the use
of North Korean exported labor, correspondent banking, and trade in
oil, textiles, food, and agricultural products.
For example, if someone knowingly transfers significant amounts of
jet fuel to North Korea, then the President could freeze that person's
assets that come within the jurisdiction of the United States. Vessels
that use North Korean ports will be banned from entering U.S. waters or
using U.S. ports. The bill also establishes restrictions on the use of
foreign assistance to any country that violates these provisions.
I want to thank the chairman and the ranking member for their
leadership and for including my amendment, which will ensure that U.S.
sanctions against North Korea do not impede the provision of vital U.S.
assistance to developing countries for maternal and child health,
disease prevention, and response.
U.S. sanctions are necessary, but they are not a complete tool to
address the threat of North Korea's impending nuclear development
program. The U.S. must undertake a rigorous diplomatic effort to urge
the global community, and China in particular, to use their goodwill,
their leverage to enforce international sanctions and to get North
Korea back to the negotiating table.
The Korean Peninsula remains one of the most dangerous flash points
in the world. President Trump, sadly, I think has escalated regional
tensions by sending mixed signals about the location of U.S. military
assets, about his views, as the ranking member said, about Kim Jong-un,
and about how best the United States ought to respond that we are going
to disabuse ourselves of the previous policy which seems to mean the
only policy left is kinetic, a military option. I don't think that
makes anything better on the Korean Peninsula.
I thank the leaders for this effort. I think it is the right way to
go. I support it fully.
Mr. ROYCE of California. Mr. Speaker, I yield 3 minutes to the
gentleman from Florida (Mr. Yoho), chairman of the Subcommittee on Asia
and the Pacific of the Committee on Foreign Affairs and a coauthor of
this bill.
[[Page H3036]]
Mr. YOHO. Mr. Speaker, I rise today in strong support of the Korea
Interdiction and Modernization of Sanctions Act, H.R. 1644, the KIMS
Act.
I thank Chairman Royce for his leadership in guiding this bill
through the Committee on Foreign Affairs and the original cosponsors of
this bill, Ranking Member Engel and Congressman Sherman, who serves
alongside me as the ranking member of the Subcommittee on Asia and the
Pacific. I also thank the chairman and ranking member for accepting my
amendment to this bill that targets the ability of leaders like those
of the Democratic Republic of the Congo that have been buying North
Korean arms for years with impunity, supplying a means of income for
the North Korean regime to fund their nuclear program and the regime of
terror and provocations.
Mr. Speaker, North Korea's nuclear program has never been a bigger
threat, and we need to respond with all the tools at our disposal.
After all, the world community is against nuclear proliferation from
any country, so the world community should support the United States
preventing North Korea's nuclear program. If anything, Pyongyang has
dramatically accelerated its belligerent behavior, conducting two
nuclear tests and two dozen missile launches last year.
Speaking before the U.N. Security Council, Secretary Tillerson was
right when he said that the threat of a North Korea nuclear attack on
Seoul or Tokyo is very real. That is why it is so important that
Congress, as we are doing here today, continue to apply pressure on
Pyongyang, providing the administration with the tools it needs to
deprive the Kim regime of the hard currency it depends on to feed its
illicit weapons program.
Importantly, this measure will advance the national security
interests of not just the United States and the Korean Peninsula but of
the whole Asia-Pacific region and will contribute to regional security
by targeting North Korea's abhorrent overseas slave labor, which is
estimated at bringing in as much as $230 million each year. There are
precious few nonmilitary tools left for managing the security situation
on the Korean Peninsula. Financial sanctions are the most important and
effective of these tools.
By advancing this legislation, the House will continue its critical
work to ensure our country has the necessary authorities and mandates
in place to ensure our financial measures are effective. A peaceful
outcome on the peninsula depends on inflicting enough pressure on Kim
to force him to make the hard but smart choices. This bill will affect
him where it hurts--in his bank accounts.
Again, I commend Chairman Royce and Ranking Member Engel for their
contributions and leadership on this important legislation. I urge my
colleagues to support this bill.
Mr. ENGEL. Mr. Speaker, I yield 2 minutes to the gentleman from Texas
(Mr. Castro), co-chair of the Japan Caucus, a very respected member of
our Committee on Foreign Affairs, and a member of the Permanent
Select Committee on Intelligence.
Mr. CASTRO of Texas. Mr. Speaker, I thank Ranking Member Engel for
yielding me this time. I rise in support of H.R. 1644, the Korean
Interdiction and Modernization of Sanctions Act, legislation that would
more effectively cut off the Kim regime's access to hard currency and
equipment for its ballistic missile and nuclear programs.
This legislation updates and expands the range of sanctions available
for the United States to use against persons or entities that violate
existing U.S. sanction laws and United Nations Security Council
resolutions regarding North Korea. The bill also requires the President
to report to Congress on foreign countries' compliance with those
Security Council resolutions.
The United States is determined to preserve the stability in the
Asia-Pacific region. Our Nation will uphold its treaty commitments to
Japan and South Korea and will defend their security in the face of the
North Korean threat.
I urge my colleagues to join me and vote in favor of this
legislation, which makes clear that the United States will target
individuals, companies, and banks that continue to do business with
North Korea.
Mr. ROYCE of California. Mr. Speaker, I reserve the balance of my
time.
Mr. ENGEL. Mr. Speaker, I yield 2 minutes to the distinguished
gentleman from Texas (Mr. Doggett).
{time} 1530
Mr. DOGGETT. Mr. Speaker, I commend the leaders of the Foreign
Affairs Committee for their leadership on this important matter. We
need stronger international action like this to send a message to the
North Korean regime.
Our sanctions approach should be at least as strong against North
Korea as it has been against Iran; and to be effective, sanctions must
include all countries. Chinese trade during the last year with North
Korea has actually increased. It is clear that it is shirking its
responsibility. If it were to limit energy and access to hard currency
reserves to North Korea, the regime would likely collapse.
Intensified sanctions of the type contemplated by this measure are
particularly important because, despite all of the recent saber
rattling from Donald Trump, we have no acceptable military solution.
Any military attack on North Korea would result in the death of
hundreds of thousands, if not millions, of the 25 million Koreans in
the greater Seoul area and the over 100,000 Americans that are in that
region.
Only this week, General McMaster, President Trump's national security
adviser, conceded that a preventive military strike would result in a
human catastrophe. We cannot eliminate the risk of North Korea, but we
can better manage it, and this measure is a step in the right
direction.
The arsenal of our democracy is more than just our military might.
Let's apply every bit of international pressure possible and hope that
the great self-described dealmaker Donald J. Trump can begin direct
negotiations to secure an agreement with North Korea that achieves at
least as much as President Obama did with Iran.
Mr. ROYCE of California. Mr. Speaker, I continue to reserve the
balance of my time.
Mr. ENGEL. Mr. Speaker, may I ask how much time is remaining on both
sides?
The SPEAKER pro tempore. The gentleman from New York has 3\1/2\
minutes remaining. The gentleman from California has 4\1/2\ minutes
remaining.
Mr. ENGEL. Mr. Speaker, I yield 1 minute to the gentlewoman from
Florida (Ms. Frankel), a very respected and hardworking member of the
Foreign Affairs Committee.
Ms. FRANKEL of Florida. Mr. Speaker, I thank my colleague from New
York.
I just returned from a trip to South Korea and Japan, a bipartisan
trip, where we focused on the dangers of North Korea. First, I want to
just say what became very clear to us is how important our relationship
is with South Korea and Japan, both economically and for our national
security.
We sat in roundtable discussions with scholars, ambassadors, and
military leaders from the United States, Japan, South Korea, and China;
and I will tell you one thing was unanimous in the thinking: a
preemptive military strike right now on our part would be
catastrophic--catastrophic not only to our friends in South Korea, the
millions who live there, our friends in Japan, but the hundreds of
thousands of American citizens and our military personnel.
I thank our chairman and our ranking member for their good work, and
I urge my colleagues to support this good bill.
Mr. ENGEL. Mr. Speaker, I yield myself the balance of my time, and I
want to close the way I opened. I want to again thank Chairman Royce
for authoring this measure and for his hard work.
One of the things I have been most proud about as the ranking member
of the Foreign Affairs Committee is the collaborative work that the
chairman and I have done together in passing so many bills with both
our names. It is what the American people want us to do, and I think
the Foreign Affairs Committee is a great example of how the American
people want Congress to work together. This bill is exactly a product
of that, of working together.
If we want to pressure the Kim regime and if we want to prevent a
potentially devastating conflict in Northeast Asia, we cannot be
impulsive. The risks are too high. We need a strong, focused, and
consistent policy. We need
[[Page H3037]]
strong measures that cut off support for the Kim regime and careful
diplomacy to bring the relevant players together. This bill represents
an important part of such a policy.
So, again, as I said, I am glad we are advancing this measure with
strong bipartisan support, and I hope the other body will take up this
legislation soon.
Mr. Speaker, I yield back the balance of my time.
Mr. ROYCE of California. Mr. Speaker, I yield myself such time as I
may consume.
Mr. Speaker, I thank my colleague, Mr. Engel, for his comments.
I will return to this theme about the urgent threat that the United
States and our allies face here. We have listened to experts who have
looked at this problem. In less than 4 years, Pyongyang may have the
ability to make a reliable intercontinental ballistic missile topped by
a nuclear warhead capable of targeting the continental United States.
When we watch these tests and we see, from a North Korean submarine,
how they are launching missiles and we watch the atomic weapons tests
that they are doing, you can see how North Korea has advanced in their
capabilities as they try to shrink these warheads and figure out how to
put them onto an ICBM.
The problem is that, in the next few years, at the current rate of
production of their nuclear material, they are going to be able to
build out 100 atomic weapons for these intercontinental ballistic
missiles. So the threat from North Korea is real, and real threats
demand real responses.
We have tried various approaches in the past. We tried strategic
patience during the last administration. I will tell you that I think
Secretary Tillerson has helped devise a strategy of maximum pressure
that makes a tremendous amount of sense to me, and I will share with
you why I think it is very credible.
We have seen in the past, in 2005, back during Banco Delta Asia, back
when North Korea was caught counterfeiting $100 U.S. bank notes, a
strategy deployed that froze the capability of that regime to move
forward with its nuclear weapons program. We know from talking to
defectors about the impact that that had internally on North Korea
because, frankly, these weapons programs are very expensive to run. It
requires billions and billions of dollars every year.
North Korea doesn't really manufacture much, other than some of the
clandestine missile parts and so forth that they transfer overseas and
some meth and counterfeit cigarettes. All of that can be halted so that
hard currency doesn't come into the hands of the regime, and,
therefore, the regime will no longer have this capability.
Because it happened in 2005 and because we know of the consequences
at the time, but also because of what we have seen with other nations,
we should move with bipartisan legislation here.
I am going to speak for a moment about what this House of
Representatives and our counterparts in the Senate did in the 1990s
when it came to the issue of a regime in South Africa that had obtained
a nuclear weapon and also was doubling down on their practices of
apartheid in terms of the way that that regime treated its own people.
If you will recall, despite the assurances and warnings about
sanctions that this was the wrong road, this House stood up, and over
80 percent of the Members here and over 80 percent of the Members in
the Senate--or 75--huge bipartisan majorities of Republicans and
Democrats came together with a policy that said enough--enough of the
conduct of that apartheid state, enough of them developing a nuclear
weapon.
It was time for the United States to lead on this, work with the
international community and enforce sanctions in a way that did what?
That, within a short period of time, brought the apartheid regime to
offer up to the international community that atomic weapon and to say:
We are done with it. And for the South African apartheid regime to say,
in terms of elections: Next year we are going to hold free and fair
elections in South Africa--in terms of the release of Nelson Mandela
and in terms of his election to President of South Africa.
Now, when people argue with us that sanctions may not be a way
forward, I would remind them that, when we unite the international
community and when we speak with one voice, yes, we could see a change
of conduct in this regime in North Korea. So I say this gives a
powerful tool to cut off the funding by going after those who do
business with the regime in violation of U.N. Security Council
resolutions.
Mr. Speaker, I thank Mr. Engel for his assistance in this, and I
thank all of my colleagues who helped on this measure.
Mr. Speaker, I yield back the balance of my time.
Mr. SMITH of New Jersey. Mr. Speaker, the era of strategic patience
is over. In its place there is a need for more concerted action to
counter North Korea's nuclear proliferation, its horrific human rights
abuses, and its sponsorship of terrorism globally. This bill
strengthens the tools the Administration can use to counter the threat
posed by a nuclear armed North Korea. It targets the shipping and
financial sectors and also targets those, in China and Russia and
elsewhere, who profit from using North Korean slave labor. I strongly
support this legislation and commend my colleagues on the House Foreign
Affairs Committee--Chairman Ed Royce and Ranking Member Eliot Engel for
their leadership.
The Administration must continue to uncover and sanction both
Pyongyang's enablers and those it enables. We should further target
with sanctions those individuals responsible for gross human rights
violations inside the so-called ``hermit kingdom'' and stop money and
materials from reaching terrorists and nuclear proliferators globally.
Not taking the North Korea threat seriously enough have been a
bipartisan problem of the last three Administrations. I commend the
Trump Administration for taking more strategic actions. The U.S. cannot
sit on the sidelines while Kim Jong Un proliferates nuclear and missile
technology that will threaten the United States. We cannot stand idly
by while Kim Jong Un sponsors terrorism and traffics his own people for
profit. We cannot be silent while an estimated 120,000 people are being
held in political-prison labor camps, suffering and dying in barbaric
conditions. Torture, rape, and the public executions of religious
believers are part of the daily life in these camps.
North Korea's political-prisoner camps are inhumane, they are
horrific, they are a crime against humanity and they must be
dismantled.
We know that the threat posed by North Korea was high on the agenda
of President Trump and President Xi meeting in Florida several weeks
ago. As we all know, the Chinese government's actions have not always
been helpful. China usually describes the China-North Korea
relationship as being one of ``like lips to teeth.'' It was good to see
this formula changed after the Trump-Xi meeting. Foreign Minister Wang
Yi know says China's relationship with ``the Peninsula'' both North and
South Korea is like lips to teeth. That is big change in rhetoric and
hopefully China will no longer prop up Kim Jong Un's deliberate
attempts to destabilize the Korean peninsula.
In addition to a more robust sanctions regime, the Administration
should pay more attention to undermining the faith of the North Korean
people in Kim Jong Un's leadership. The cult of personality that
surrounds the Kim family remains a strong deterrent to protest and
uprisings within North Korea. The Kim family is accorded god-like
status--the cult of personality is sometimes called Juche--and it
offers Kim Jong Un a `divine mandate' to pursue nuclear weapons,
national security, and human rights abuses with impunity.
More needs to be done to tarnish Kim Jong Un's image and that of the
Kim family. The U.S. should be actively seeking to undermine the cult
of personality and drive a wedge between North Korea elites and the Kim
family. Sanctions are one way to drive such a wedge, but also needed
are more radio broadcasts and USB drives with South Korean pop culture
and news and information targeting North Korean military and elites.
The more information the North Korean people have, the less isolated
they are, the more likely they will see the Kim family as false gods.
Some of this work is being done by North Korean defectors living in
South Korea. But their efforts are tiny and were not supported by the
previous Administration.
The current sanctions regime is having some effect. High-level
diplomats, military leaders, and the families of high-ranking officials
are defecting--they are recognizing that they will be held accountable
if they continue to support Kim Jong Un's barbaric regime.
Nevertheless, recent evidence shows that North Korea has become very
good at evading sanctions. Last month a U.N. report made clear that
North Korea is using `increasingly sophisticated' tactics to evade
existing sanctions. Money, arms, and people are moved across borders by
networks of middlemen and banks to avoid detection. The U.N. report
concluded that sanctions enforcement `remains insufficient.' This
legislation will expand U.S.
[[Page H3038]]
sanctions to target those help Kim Jong Un avoid sanctions and fund his
nuclear program and human rights abuses.
I urge support for the legislation offered today and commend my
colleagues for bringing this important legislation before the House.
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. 1644, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. ROYCE of California. Mr. Speaker, on that I demand the yeas and
nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this motion will be postponed.
____________________