[Congressional Record Volume 166, Number 117 (Thursday, June 25, 2020)]
[Senate]
[Pages S3283-S3290]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
HONG KONG AUTONOMY ACT
Mr. HAWLEY. Mr. President, a week ago, I stood in this Chamber and
spoke about the death of democracy. I spoke about how free people are
slowly losing their basic liberties right in front of our eyes. I spoke
about how deeply oppressive regimes are defiling laws and
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tearing up treaties that offer protections and peace. I spoke about how
the bright light of a great city is descending into darkness and chaos.
I spoke about the plight of the people of Hong Kong.
I take this opportunity to remind everyone, both at home and those
listening abroad, about the urgent and existential crisis that plagues
this outpost of liberty in the Indo-Pacific. On May 28, the Chinese
Communist Party in Beijing adopted a resolution and began drafting a
new national security law in Hong Kong. That is what they call it,
anyway. But the more we learn about this impending legislation, the
more concerned we should be. That is because we know that this is no
legitimate law.
I will tell you what this is. It is a dictate from a dictatorship,
and its passage will deal a mortal blow to the freedoms and liberties
that Hongkongers have enjoyed for decades now. It is a permanent break
from the one country-two systems principle that has governed that city
since 1997, the principle to which Beijing committed in the 1984 Sino-
British Treaty, when they also committed to upholding the basic rights
and liberties of the people of Hong Kong.
Beijing wants to violate all of that now. They want to sweep it
aside, and they want to do it through so-called legislation adopted
through their fake legislature that would roll back the commitments
they have made, roll back the protections and rights of the people of
Hong Kong, and snuff out this light in the Indo-Pacific.
Imagine this great city with new restrictions on speech, assembly,
and religion, because that is what the Chinese Communist Party wants.
They call it a national security law. It doesn't have anything to do
with national security. It has everything to do with ending liberty. It
has to do with banning the freedom of assembly. It has to do with
squelching the freedom of speech. It has to do with denying the freedom
of religion. That is the agenda. That is the substance. That is what
Beijing wants, and it is what they are going to do unless the free
world, beginning with the Members of this body, stand up and say no.
This body must take action today to support the people of Hong Kong.
It must speak with one voice. It must tell the world that this is not
acceptable and that it must not stand, and free peoples the world over
must not silently acquiesce
Now, a week ago, I tried to do just that. I asked this body for
consent, unanimously, to pass a resolution that would condemn this new
dictate from Beijing and emphasize its clear violation of both Hong
Kong basic law and the Sino-British joint declaration. This resolution
that I am here again today to offer, sponsored and supported by
Senators of both parties, would make it clear to everyone that the
United States stands with the people of Hong Kong in this their hour of
need. It would encourage the administration to take all necessary
diplomatic action to stop this new law, to stop this advance against
freedom, and it would rally the free nations of the world to support a
free city.
That resolution was blocked last week. You know, here in this body,
we often have the luxury of time. It seems like that is all we have
sometimes. We debate and we wait, and we debate and discuss, but the
fact is, the people of Hong Kong do not have time, not anymore, and
that means the U.S. Senate does not have time. We must act, and we must
act today.
This new so-called law that Beijing is intent on forcing through is
set to pass now on June 30. That is just 5 days from today. The Senate
needs to act now to send a clear signal now that we will stand up to
this aggression, to rally free peoples now in defense of the rights and
liberties of Hong Kong, and to stand up now to protect our own
interests and to protect our own needs in the Indo-Pacific, because
there is nothing more dangerous to the people of the United States
abroad than an imperialist China intent on imposing its will and
imposing its way on the entire globe, beginning in the Asia-Pacific and
beginning with the free people of Hong Kong.
A chorus of voices from Hong Kong and around the world are calling
for the passage of this resolution. They are calling for it because
they know it will inspire hope in Hong Kong. They are calling for it
because they know it will give pause to the tyrants in Beijing.
Our friends in Hong Kong know that Beijing is watching closely.
Beijing is finalizing its national security law even as we speak, and
Hongkongers know, as we must, that this could be our last opportunity
to stay Beijing's hand before it destroys what is left of freedom in
this city. Beijing must know that its actions have consequences. This
resolution today makes clear that that will be the case, and that is
why so many in Hong Kong are so eager to see it pass and why Beijing is
so hopeful that it will fail.
As I said a week ago, the struggle of the free people of Hong Kong is
the struggle of all free people everywhere. It is a struggle to stay
free from domination. It is a struggle to ensure that Beijing does not
extend its imperial power around the globe and its influence to free
countries and societies across the globe. Hong Kong is the vanguard,
and it is vital that we stand up for it now.
I ask unanimous consent that the Committee on Foreign Relations be
discharged from further consideration and the Senate now proceed to S.
Res. 596.
The PRESIDING OFFICER. Is there objection?
Mr. VAN HOLLEN. Mr. President.
The PRESIDING OFFICER. The Senator from Maryland.
Mr. VAN HOLLEN. Reserving the right to object, I believe that we may
have this worked out so there may not be an objection, but I just want
to say a few words before I proceed with this unanimous consent
request.
As the gentleman from Missouri said, he was on the floor of the
Senate last week proposing a Senate resolution condemning the actions
of China with respect to Hong Kong. I said then and I say again now, I
fully agree with his assessment.
What the Government of China is doing in Hong Kong is unacceptable.
They are taking away the rights of the people in Hong Kong. They are
snuffing out the freedoms that exist there right now. Since we were on
the floor last week, the Standing Committee of the National People's
Congress reportedly reviewed an initial draft of the national security
law, which has not been released. So even in this last week, they are
moving forward in their process to take away the liberties of the
people of Hong Kong.
Time is of the essence. What I said on the floor last week and what I
will say again today is that passage of a Senate resolution is not
going to deter the actions of the Government of China. It is a
statement. It is an important statement by the Senate. But to believe
that the Government of China will be deterred one wit in moving forward
on the path that it is on to take away the freedoms of the people of
Hong Kong is to not be even paying attention to what is happening in
Beijing.
I heard the Senator from Missouri say: ``Actions have consequences.''
I agree they should. From the perspective of the Government of China
passing a Senate resolution as a consequence to their action is hardly
going to be taken seriously in Beijing. That is why it is important to
actually do something that shows that the Government of China will pay
a price if it continues down this path to extinguish those freedoms of
the people of Hong Kong.
That is exactly why, right after the Government of China headed down
this path, Senator Toomey, who is here with us on the floor, and I
introduced a piece of legislation that would have consequences, that
would actually punish the government of China if it continues down this
path. It establishes a set of mandatory sanctions. It requires the
administration to identify all those individuals who are culpable and
complicit in taking away the rights of the people in Hong Kong. And
more than that, it would sanction those banks that allow those
individuals to do business.
That is an action that does have consequences. That is an action
where at least there is a chance that the Government of China will
listen because they understand it is not just a statement by the U.S.
Senate. They understand that it is a statement with penalties.
Now, let me make clear that in order for this legislation to be
effective, eventually, the administration is going
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to have to follow the law, and it is going to have to impose the
sanctions on those individuals who are responsible.
I would be remiss or negligent if I didn't point out that the
administration currently has authority to impose sanctions against
China for its actions in Hong Kong based on legislation that this body
passed last year to uphold the rights--the human rights and the
democratic rights--of the people of Hong Kong.
So, despite some statements from the Secretary of State, this
administration has still taken no action.
Now, this legislation that Senator Toomey and I have proposed--and I
really want to thank the Senator and salute him for his leadership on
this. We have worked together in the past on sanctions that have been
adopted into law with respect to North Korea, and I think it is
important that we work on a bipartisan basis to take action that is
meaningful here in the Senate.
The administration should act now on their existing authority. The
Senate and the House should pass this legislation, the Hong Kong
Autonomy Act, as amended, here today and send it to the White House.
The President, we hope, would sign it, and then we hope the President
would impose the expanded sanctions that are provided for in the Hong
Kong Autonomy Act. That is doing something that demonstrates to the
Government of China that consequences have action, and that is why it
was discouraging last week when we proposed this and we had a Senator
come to the floor and block it.
I agree with the Senator from Missouri--it would have been great to
pass this last week--but a Senator came to the floor to block it even
though that Senator was a cosponsor of this legislation. When asked why
he did it, he said he blocked it at the behest of the White House. That
is what he said. I am hoping that is not the case today. I am hoping
that today we don't, at the last minute, have a Senator, at the behest
of the White House, coming forward.
Before I make my unanimous consent request, I would like to yield the
floor briefly to the Senator from Pennsylvania, who has been a partner
in this effort.
The PRESIDING OFFICER (Mrs. Fischer). The Senator from Pennsylvania.
Mr. TOOMEY. Madam President, I am going to just take a quick moment
here to thank both my colleague from Missouri and my colleague from
Maryland for their leadership on this extremely important issue.
In the interest of time, I will not reiterate the many very, very
compelling reasons that we are here on the floor right now. The Senator
from Missouri has done an outstanding job eloquently and passionately
explaining why it is our responsibility to stand up for the freedom of
a freedom-loving people whose freedom is seriously eroded,
systematically being damaged, and that is, of course, the people of
Hong Kong.
I had the great experience of living in Hong Kong for a year,
learning so much about that society, that culture. The vibrancy of Hong
Kong is just absolutely stunning. And it is all possible--let's be
clear--because freedom has prevailed in Hong Kong--or at least it used
to--freedom of speech, freedom of assembly, freedom to practice their
faith as they see fit, an independent judiciary, and the rule of law.
All of that is very, very seriously threatened right now by the Chinese
Communist Party because their greatest fear is that the people on the
mainland will observe the freedoms in Hong Kong and decide maybe they
would like some of those freedoms too. That is the risk that the
Chinese Communist leadership cannot tolerate.
I want to commend my colleague from Missouri for putting a spotlight
on this, bringing our action, and calling on the Senate to defend the
people who seek only their freedom.
I really want to thank very much my colleague from Maryland. As he
pointed out, we have been partners on legislation in the past. Nobody
works harder to get their objective accomplished than my colleague from
Maryland.
Our legislation, which I think is about to pass jointly with the
resolution--I think we are going to have a unanimous consent agreement
whereby both measures pass simultaneously. I think that is the optimal
outcome here.
I want to thank the folks at the Department of the Treasury, with
whom we worked extensively to get to the point where they are in
agreement with this legislation.
I certainly hope that, after this big step of passage here on the
Senate floor today, this legislation--both pieces: the resolution and
the sanctions legislation--will soon be on its way to the President's
desk for his signature.
With that, I yield back to the gentleman from Maryland.
The PRESIDING OFFICER. The Senator from Maryland.
Mr. VAN HOLLEN. Madam President, in continuing to reserve the right
to object, would the Senator from Missouri modify his request to also
discharge S. 3798 and consider S. Res. 596 and S. 3798 en bloc; and the
substitute to the bill at the desk be agreed to; and the bill, as
amended, be read the third time; and that if the resolution is agreed
to and if the bill, as amended, is passed by the Senate, that the
preamble then be agreed to and all motions to reconsider be considered
made and laid upon the table?
The PRESIDING OFFICER. Does the Senator from Missouri so modify his
request?
Mr. HAWLEY. I will.
The PRESIDING OFFICER. Is there an objection to the request as
modified?
Without objection, it is so ordered.
There being no objection, the Committee on Banking, Housing, and
Urban Affairs was discharged, and the Senate proceeded to consider the
resolution (S. Res. 596) and the bill (S. 3798) en bloc.
The amendment (No. 1821) in the nature of a substitute was agreed to,
as follows
(Purpose: In the nature of a substitute)
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Hong Kong
Autonomy Act''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Findings.
Sec. 4. Sense of Congress regarding Hong Kong.
Sec. 5. Identification of foreign persons involved in the erosion of
the obligations of China under the Joint Declaration or
the Basic Law and foreign financial institutions that
conduct significant transactions with those persons.
Sec. 6. Sanctions with respect to foreign persons that contravene the
obligations of China under the Joint Declaration or the
Basic Law.
Sec. 7. Sanctions with respect to foreign financial institutions that
conduct significant transactions with foreign persons
that contravene the obligations of China under the Joint
Declaration or the Basic Law.
Sec. 8. Waiver, termination, exceptions, and congressional review
process.
Sec. 9. Implementation; penalties.
Sec. 10. Rule of construction.
SEC. 2. DEFINITIONS.
In this Act:
(1) Alien; national; national of the united states.--The
terms ``alien'', ``national'', and ``national of the United
States'' have the meanings given those terms in section 101
of the Immigration and Nationality Act (8 U.S.C. 1101).
(2) Appropriate congressional committees and leadership.--
The term ``appropriate congressional committees and
leadership'' means--
(A) the Committee on Armed Services, the Committee on
Banking, Housing, and Urban Affairs, the Committee on Foreign
Relations, the Committee on Homeland Security and
Governmental Affairs, the Committee on the Judiciary, the
Select Committee on Intelligence, and the majority leader and
the minority leader of the Senate; and
(B) the Committee on Armed Services, the Committee on
Financial Services, the Committee on Foreign Affairs, the
Committee on Homeland Security, the Committee on the
Judiciary, the Permanent Select Committee on Intelligence,
and the Speaker and the minority leader of the House of
Representatives.
(3) Basic law.--The term ``Basic Law'' means the Basic Law
of the Hong Kong Special Administrative Region of the
People's Republic of China.
(4) China.--The term ``China'' means the People's Republic
of China.
(5) Entity.--The term ``entity'' means a partnership, joint
venture, association, corporation, organization, network,
group, or subgroup, or any other form of business
collaboration.
(6) Financial institution.--The term ``financial
institution'' means a financial institution specified in
section 5312(a)(2) of title 31, United States Code.
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(7) Hong kong.--The term ``Hong Kong'' means the Hong Kong
Special Administrative Region of the People's Republic of
China.
(8) Joint declaration.--The term ``Joint Declaration''
means the Joint Declaration of the Government of the United
Kingdom of Great Britain and Northern Ireland and the
Government of the People's Republic of China on the Question
of Hong Kong, done at Beijing on December 19, 1984.
(9) Knowingly.--The term ``knowingly'', with respect to
conduct, a circumstance, or a result, means that a person has
actual knowledge of the conduct, the circumstance, or the
result.
(10) Person.--The term ``person'' means an individual or
entity.
(11) United states person.--The term ``United States
person'' means--
(A) any citizen or national of the United States;
(B) any alien lawfully admitted for permanent residence in
the United States;
(C) any entity organized under the laws of the United
States or any jurisdiction within the United States
(including a foreign branch of such an entity); or
(D) any person located in the United States.
SEC. 3. FINDINGS.
Congress makes the following findings:
(1) The Joint Declaration and the Basic Law clarify certain
obligations and promises that the Government of China has
made with respect to the future of Hong Kong.
(2) The obligations of the Government of China under the
Joint Declaration were codified in a legally-binding treaty,
signed by the Government of the United Kingdom of Great
Britain and Northern Ireland and registered with the United
Nations.
(3) The obligations of the Government of China under the
Basic Law originate from the Joint Declaration, were passed
into the domestic law of China by the National People's
Congress, and are widely considered by citizens of Hong Kong
as part of the de facto legal constitution of Hong Kong.
(4) Foremost among the obligations of the Government of
China to Hong Kong is the promise that, pursuant to Paragraph
3b of the Joint Declaration, ``the Hong Kong Special
Administrative Region will enjoy a high degree of autonomy,
except in foreign and defence affairs which are the
responsibilities of the Central People's Government''.
(5) The obligation specified in Paragraph 3b of the Joint
Declaration is referenced, reinforced, and extrapolated on in
several portions of the Basic Law, including Articles 2, 12,
13, 14, and 22.
(6) Article 22 of the Basic Law establishes that ``No
department of the Central People's Government and no
province, autonomous region, or municipality directly under
the Central Government may interfere in the affairs which the
Hong Kong Special Administrative Region administers on its
own in accordance with this Law.''.
(7) The Joint Declaration and the Basic Law make clear that
additional obligations shall be undertaken by China to ensure
the ``high degree of autonomy'' of Hong Kong.
(8) Paragraph 3c of the Joint Declaration states, as
reinforced by Articles 2, 16, 17, 18, 19, and 22 of the Basic
Law, that Hong Kong ``will be vested with executive,
legislative and independent judicial power, including that of
final adjudication''.
(9) On multiple occasions, the Government of China has
undertaken actions that have contravened the letter or intent
of the obligation described in paragraph (8) of this section,
including the following:
(A) In 1999, the Standing Committee of the National
People's Congress overruled a decision by the Hong Kong Court
of Final Appeal on the right of abode.
(B) On multiple occasions, the Government of Hong Kong, at
the advice of the Government of China, is suspected to have
not allowed persons entry into Hong Kong allegedly because of
their support for democracy and human rights in Hong Kong and
China.
(C) The Liaison Office of China in Hong Kong has, despite
restrictions on interference in the affairs of Hong Kong as
detailed in Article 22 of the Basic Law--
(i) openly expressed support for candidates in Hong Kong
for Chief Executive and Legislative Council;
(ii) expressed views on various policies for the Government
of Hong Kong and other internal matters relating to Hong
Kong; and
(iii) on April 17, 2020, asserted that both the Liaison
Office of China in Hong Kong and the Hong Kong and Macau
Affairs Office of the State Council ``have the right to
exercise supervision . . . on affairs regarding Hong Kong and
the mainland, in order to ensure correct implementation of
the Basic Law''.
(D) The National People's Congress has passed laws
requiring Hong Kong to pass laws banning disrespectful
treatment of the national flag and national anthem of China.
(E) The State Council of China released a white paper on
June 10, 2014, that stressed the ``comprehensive
jurisdiction'' of the Government of China over Hong Kong and
indicated that Hong Kong must be governed by ``patriots''.
(F) The Government of China has directed operatives to
kidnap and bring to the mainland, or is otherwise responsible
for the kidnapping of, residents of Hong Kong, including
businessman Xiao Jianhua and bookseller Gui Minhai.
(G) The Government of Hong Kong, acting with the support of
the Government of China, introduced an extradition bill that
would have permitted the Government of China to request and
enforce extradition requests for any individual present in
Hong Kong, regardless of the legality of the request or the
degree to which it compromised the judicial independence of
Hong Kong.
(H) The spokesman for the Standing Committee of the
National People's Congress said, ``Whether Hong Kong's laws
are consistent with the Basic Law can only be judged and
decided by the National People's Congress Standing Committee.
No other authority has the right to make judgments and
decisions.''.
(10) Paragraph 3e of the Joint Declaration states, as
reinforced by Article 5 of the Basic Law, that the ``current
social and economic systems in Hong Kong will remain
unchanged, as so will the life-style.''.
(11) On multiple occasions, the Government of China has
undertaken actions that have contravened the letter or intent
of the obligation described in paragraph (10) of this
section, including the following:
(A) In 2002, the Government of China pressured the
Government of Hong Kong to introduce ``patriotic'' curriculum
in primary and secondary schools.
(B) The governments of China and Hong Kong proposed the
prohibition of discussion of Hong Kong independence and self-
determination in primary and secondary schools, which
infringes on freedom of speech.
(C) The Government of Hong Kong mandated that Mandarin, and
not the native language of Cantonese, be the language of
instruction in Hong Kong schools.
(D) The governments of China and Hong Kong agreed to a
daily quota of mainland immigrants to Hong Kong, which is
widely believed by citizens of Hong Kong to be part of an
effort to ``mainlandize'' Hong Kong.
(12) Paragraph 3e of the Joint Declaration states, as
reinforced by Articles 4, 26, 27, 28, 29, 30, 31, 32 33, 34,
and 39 of the Basic Law, that the ``rights and freedoms,
including those of person, of speech, of the press, of
assembly, of association, of travel, of movement, of
correspondence, of strike, of choice of occupation, of
academic research and of religious belief will be ensured by
law'' in Hong Kong.
(13) On multiple occasions, the Government of China has
undertaken actions that have contravened the letter or intent
of the obligation described in paragraph (12) of this
section, including the following:
(A) On February 26, 2003, the Government of Hong Kong
introduced a national security bill that would have placed
restrictions on freedom of speech and other protected rights.
(B) The Liaison Office of China in Hong Kong has pressured
businesses in Hong Kong not to advertise in newspapers and
magazines critical of the governments of China and Hong Kong.
(C) The Hong Kong Police Force selectively blocked
demonstrations and protests expressing opposition to the
governments of China and Hong Kong or the policies of those
governments.
(D) The Government of Hong Kong refused to renew work visa
for a foreign journalist, allegedly for hosting a speaker
from the banned Hong Kong National Party.
(E) The Justice Department of Hong Kong selectively
prosecuted cases against leaders of the Umbrella Movement,
while failing to prosecute police officers accused of using
excessive force during the protests in 2014.
(F) On April 18, 2020, the Hong Kong Police Force arrested
14 high-profile democracy activists and campaigners for their
role in organizing a protest march that took place on August
18, 2019, in which almost 2,000,000 people rallied against a
proposed extradition bill.
(14) Articles 45 and 68 of the Basic Law assert that the
selection of Chief Executive and all members of the
Legislative Council of Hong Kong should be by ``universal
suffrage.''.
(15) On multiple occasions, the Government of China has
undertaken actions that have contravened the letter or intent
of the obligation described in paragraph (14) of this
section, including the following:
(A) In 2004, the National People's Congress created new,
antidemocratic procedures restricting the adoption of
universal suffrage for the election of the Chief Executive of
Hong Kong.
(B) The decision by the National People's Congress on
December 29, 2007, which ruled out universal suffrage in 2012
elections and set restrictions on when and if universal
suffrage will be implemented.
(C) The decision by the National People's Congress on
August 31, 2014, which placed limits on the nomination
process for the Chief Executive of Hong Kong as a condition
for adoption of universal suffrage.
(D) On November 7, 2016, the National People's Congress
interpreted Article 104 of the Basic Law in such a way to
disqualify 6 elected members of the Legislative Council.
(E) In 2018, the Government of Hong Kong banned the Hong
Kong National Party and blocked the candidacy of pro-
democracy candidates.
(16) The ways in which the Government of China, at times
with the support of a subservient Government of Hong Kong,
has acted in contravention of its obligations under the Joint
Declaration and the Basic Law, as set forth in this section,
are deeply concerning to the people of Hong Kong, the United
States, and members of the international community who
support the autonomy of Hong Kong.
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SEC. 4. SENSE OF CONGRESS REGARDING HONG KONG.
It is the sense of Congress that--
(1) the United States continues to uphold the principles
and policy established in the United States-Hong Kong Policy
Act of 1992 (22 U.S.C. 5701 et seq.) and the Hong Kong Human
Rights and Democracy Act of 2019 (Public Law 116-76; 22
U.S.C. 5701 note), which remain consistent with China's
obligations under the Joint Declaration and certain
promulgated objectives under the Basic Law, including that--
(A) as set forth in section 101(1) of the United States-
Hong Kong Policy Act of 1992 (22 U.S.C. 5711(1)), ``The
United States should play an active role, before, on, and
after July 1, 1997, in maintaining Hong Kong's confidence and
prosperity, Hong Kong's role as an international financial
center, and the mutually beneficial ties between the people
of the United States and the people of Hong Kong.''; and
(B) as set forth in section 2(5) of the United States-Hong
Kong Policy Act of 1992 (22 U.S.C. 5701(5)), ``Support for
democratization is a fundamental principle of United States
foreign policy. As such, it naturally applies to United
States policy toward Hong Kong. This will remain equally true
after June 30, 1997.'';
(2) although the United States recognizes that, under the
Joint Declaration, the Government of China ``resumed the
exercise of sovereignty over Hong Kong with effect on 1 July
1997'', the United States supports the autonomy of Hong Kong
in furtherance of the United States-Hong Kong Policy Act of
1992 and the Hong Kong Human Rights and Democracy Act of 2019
and advances the desire of the people of Hong Kong to
continue the ``one country, two systems'' regime, in addition
to other obligations promulgated by China under the Joint
Declaration and the Basic Law;
(3) in order to support the benefits and protections that
Hong Kong has been afforded by the Government of China under
the Joint Declaration and the Basic Law, the United States
should establish a clear and unambiguous set of penalties
with respect to foreign persons determined by the Secretary
of State, in consultation with the Secretary of the Treasury,
to be involved in the contravention of the obligations of
China under the Joint Declaration and the Basic Law and the
financial institutions transacting with those foreign
persons;
(4) the Secretary of State should provide an unclassified
assessment of the reason for imposition of certain economic
penalties on entities, so as to permit a clear path for the
removal of economic penalties if the sanctioned behavior is
reversed and verified by the Secretary of State;
(5) relevant Federal agencies should establish a
multilateral sanctions regime with respect to foreign persons
involved in the contravention of the obligations of China
under the Joint Declaration and the Basic Law; and
(6) in addition to the penalties on foreign persons, and
financial institutions transacting with those foreign
persons, for the contravention of the obligations of China
under the Joint Declaration and the Basic Law, the United
States should take steps, in a time of crisis, to assist
permanent residents of Hong Kong who are persecuted or fear
persecution as a result of the contravention by China of its
obligations under the Joint Declaration and the Basic Law to
become eligible to obtain lawful entry into the United
States.
SEC. 5. IDENTIFICATION OF FOREIGN PERSONS INVOLVED IN THE
EROSION OF THE OBLIGATIONS OF CHINA UNDER THE
JOINT DECLARATION OR THE BASIC LAW AND FOREIGN
FINANCIAL INSTITUTIONS THAT CONDUCT SIGNIFICANT
TRANSACTIONS WITH THOSE PERSONS.
(a) In General.--Not later than 90 days after the date of
the enactment of this Act, if the Secretary of State, in
consultation with the Secretary of the Treasury, determines
that a foreign person is materially contributing to, has
materially contributed to, or attempts to materially
contribute to the failure of the Government of China to meet
its obligations under the Joint Declaration or the Basic Law,
the Secretary of State shall submit to the appropriate
congressional committees and leadership a report that
includes--
(1) an identification of the foreign person; and
(2) a clear explanation for why the foreign person was
identified and a description of the activity that resulted in
the identification.
(b) Identifying Foreign Financial Institutions.--Not
earlier than 30 days and not later than 60 days after the
Secretary of State submits to the appropriate congressional
committees and leadership the report under subsection (a),
the Secretary of the Treasury, in consultation with the
Secretary of State, shall submit to the appropriate
congressional committees and leadership a report that
identifies any foreign financial institution that knowingly
conducts a significant transaction with a foreign person
identified in the report under subsection (a).
(c) Exclusion of Certain Information.--
(1) Intelligence.--The Secretary of State shall not
disclose the identity of a person in a report submitted under
subsection (a) or (b), or an update under subsection (e), if
the Director of National Intelligence determines that such
disclosure could compromise an intelligence operation,
activity, source, or method of the United States.
(2) Law enforcement.--The Secretary of State shall not
disclose the identity of a person in a report submitted under
subsection (a) or (b), or an update under subsection (e), if
the Attorney General, in coordination, as appropriate, with
the Director of the Federal Bureau of Investigation, the head
of any other appropriate Federal law enforcement agency, and
the Secretary of the Treasury, determines that such
disclosure could reasonably be expected--
(A) to compromise the identity of a confidential source,
including a State, local, or foreign agency or authority or
any private institution that furnished information on a
confidential basis;
(B) to jeopardize the integrity or success of an ongoing
criminal investigation or prosecution;
(C) to endanger the life or physical safety of any person;
or
(D) to cause substantial harm to physical property.
(3) Notification required.--If the Director of National
Intelligence makes a determination under paragraph (1) or the
Attorney General makes a determination under paragraph (2),
the Director or the Attorney General, as the case may be,
shall notify the appropriate congressional committees and
leadership of the determination and the reasons for the
determination.
(d) Exclusion or Removal of Foreign Persons and Foreign
Financial Institutions.--
(1) Foreign persons.--The President may exclude a foreign
person from the report under subsection (a), or an update
under subsection (e), or remove a foreign person from the
report or update prior to the imposition of sanctions under
section 6(a) if the material contribution (as described in
subsection (g)) that merited inclusion in that report or
update--
(A) does not have a significant and lasting negative effect
that contravenes the obligations of China under the Joint
Declaration and the Basic Law;
(B) is not likely to be repeated in the future; and
(C) has been reversed or otherwise mitigated through
positive countermeasures taken by that foreign person.
(2) Foreign financial institutions.--The President may
exclude a foreign financial institution from the report under
subsection (b), or an update under subsection (e), or remove
a foreign financial institution from the report or update
prior to the imposition of sanctions under section 7(a) if
the significant transaction or significant transactions of
the foreign financial institution that merited inclusion in
that report or update--
(A) does not have a significant and lasting negative effect
that contravenes the obligations of China under the Joint
Declaration and the Basic Law;
(B) is not likely to be repeated in the future; and
(C) has been reversed or otherwise mitigated through
positive countermeasures taken by that foreign financial
institution.
(3) Notification required.--If the President makes a
determination under paragraph (1) or (2) to exclude or remove
a foreign person or foreign financial institution from a
report under subsection (a) or (b), as the case may be, the
President shall notify the appropriate congressional
committees and leadership of the determination and the
reasons for the determination.
(e) Update of Reports.--
(1) In general.--Each report submitted under subsections
(a) and (b) shall be updated in an ongoing manner and, to the
extent practicable, updated reports shall be resubmitted with
the annual report under section 301 of the United States-Hong
Kong Policy Act of 1992 (22 U.S.C. 5731).
(2) Rule of construction.--Nothing in this subsection shall
be construed to terminate the requirement to update the
reports under subsections (a) and (b) upon the termination of
the requirement to submit the annual report under section 301
of the United States-Hong Kong Policy Act of 1992 (22 U.S.C.
5731).
(f) Form of Reports.--
(1) In general.--Each report under subsection (a) or (b)
(including updates under subsection (e)) shall be submitted
in unclassified form and made available to the public.
(2) Classified annex.--The explanations and descriptions
included in the report under subsection (a)(2) (including
updates under subsection (e)) may be expanded on in a
classified annex.
(g) Material Contributions Related to Obligations of China
Described.--For purposes of this section, a foreign person
materially contributes to the failure of the Government of
China to meet its obligations under the Joint Declaration or
the Basic Law if the person--
(1) took action that resulted in the inability of the
people of Hong Kong--
(A) to enjoy freedom of assembly, speech, press, or
independent rule of law; or
(B) to participate in democratic outcomes; or
(2) otherwise took action that reduces the high degree of
autonomy of Hong Kong.
SEC. 6. SANCTIONS WITH RESPECT TO FOREIGN PERSONS THAT
CONTRAVENE THE OBLIGATIONS OF CHINA UNDER THE
JOINT DECLARATION OR THE BASIC LAW.
(a) Imposition of Sanctions.--
(1) In general.--On and after the date on which a foreign
person is included in the report under section 5(a) or an
update to that
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report under section 5(e), the President may impose sanctions
described in subsection (b) with respect to that foreign
person.
(2) Mandatory sanctions.--Not later than one year after the
date on which a foreign person is included in the report
under section 5(a) or an update to that report under section
5(e), the President shall impose sanctions described in
subsection (b) with respect to that foreign person.
(b) Sanctions Described.--The sanctions described in this
subsection with respect to a foreign person are the
following:
(1) Property transactions.--The President may, pursuant to
such regulations as the President may prescribe, prohibit any
person from--
(A) acquiring, holding, withholding, using, transferring,
withdrawing, transporting, or exporting any property that is
subject to the jurisdiction of the United States and with
respect to which the foreign person has any interest;
(B) dealing in or exercising any right, power, or privilege
with respect to such property; or
(C) conducting any transaction involving such property.
(2) Exclusion from the united states and revocation of visa
or other documentation.--In the case of a foreign person who
is an individual, the President may direct the Secretary of
State to deny a visa to, and the Secretary of Homeland
Security to exclude from the United States, the foreign
person, subject to regulatory exceptions to permit the United
States to comply with the Agreement regarding the
Headquarters of the United Nations, signed at Lake Success
June 26, 1947, and entered into force November 21, 1947,
between the United Nations and the United States, or other
applicable international obligations.
SEC. 7. SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL
INSTITUTIONS THAT CONDUCT SIGNIFICANT
TRANSACTIONS WITH FOREIGN PERSONS THAT
CONTRAVENE THE OBLIGATIONS OF CHINA UNDER THE
JOINT DECLARATION OR THE BASIC LAW.
(a) Imposition of Sanctions.--
(1) Initial sanctions.--Not later than one year after the
date on which a foreign financial institution is included in
the report under section 5(b) or an update to that report
under section 5(e), the President shall impose not fewer than
5 of the sanctions described in subsection (b) with respect
to that foreign financial institution.
(2) Expanded sanctions.--Not later than two years after the
date on which a foreign financial institution is included in
the report under section 5(b) or an update to that report
under section 5(e), the President shall impose each of the
sanctions described in subsection (b).
(b) Sanctions Described.--The sanctions described in this
subsection with respect to a foreign financial institution
are the following:
(1) Loans from united states financial institutions.--The
United States Government may prohibit any United States
financial institution from making loans or providing credits
to the foreign financial institution.
(2) Prohibition on designation as primary dealer.--Neither
the Board of Governors of the Federal Reserve System nor the
Federal Reserve Bank of New York may designate, or permit the
continuation of any prior designation of, the foreign
financial institution as a primary dealer in United States
Government debt instruments.
(3) Prohibition on service as a repository of government
funds.--The foreign financial institution may not serve as
agent of the United States Government or serve as repository
for United States Government funds.
(4) Foreign exchange.--The President may, pursuant to such
regulations as the President may prescribe, prohibit any
transactions in foreign exchange that are subject to the
jurisdiction of the United States and involve the foreign
financial institution.
(5) Banking transactions.--The President may, pursuant to
such regulations as the President may prescribe, prohibit any
transfers of credit or payments between financial
institutions or by, through, or to any financial institution,
to the extent that such transfers or payments are subject to
the jurisdiction of the United States and involve the foreign
financial institution.
(6) Property transactions.--The President may, pursuant to
such regulations as the President may prescribe, prohibit any
person from--
(A) acquiring, holding, withholding, using, transferring,
withdrawing, transporting, importing, or exporting any
property that is subject to the jurisdiction of the United
States and with respect to which the foreign financial
institution has any interest;
(B) dealing in or exercising any right, power, or privilege
with respect to such property; or
(C) conducting any transaction involving such property.
(7) Restriction on exports, reexports, and transfers.--The
President, in consultation with the Secretary of Commerce,
may restrict or prohibit exports, reexports, and transfers
(in-country) of commodities, software, and technology subject
to the jurisdiction of the United States directly or
indirectly to the foreign financial institution.
(8) Ban on investment in equity or debt.--The President
may, pursuant to such regulations or guidelines as the
President may prescribe, prohibit any United States person
from investing in or purchasing significant amounts of equity
or debt instruments of the foreign financial institution.
(9) Exclusion of corporate officers.--The President may
direct the Secretary of State, in consultation with the
Secretary of the Treasury and the Secretary of Homeland
Security, to exclude from the United States any alien that is
determined to be a corporate officer or principal of, or a
shareholder with a controlling interest in, the foreign
financial institution, subject to regulatory exceptions to
permit the United States to comply with the Agreement
regarding the Headquarters of the United Nations, signed at
Lake Success June 26, 1947, and entered into force November
21, 1947, between the United Nations and the United States,
or other applicable international obligations.
(10) Sanctions on principal executive officers.--The
President may impose on the principal executive officer or
officers of the foreign financial institution, or on
individuals performing similar functions and with similar
authorities as such officer or officers, any of the sanctions
described in paragraphs (1) through (8) that are applicable.
(c) Timing of Sanctions.--The President may impose
sanctions required under subsection (a) with respect to a
financial institution included in the report under section
5(b) or an update to that report under section 5(e) beginning
on the day on which the financial institution is included in
that report or update.
SEC. 8. WAIVER, TERMINATION, EXCEPTIONS, AND CONGRESSIONAL
REVIEW PROCESS.
(a) National Security Waiver.--Unless a disapproval
resolution is enacted under subsection (e), the President may
waive the application of sanctions under section 6 or 7 with
respect to a foreign person or foreign financial institution
if the President--
(1) determines that the waiver is in the national security
interest of the United States; and
(2) submits to the appropriate congressional committees and
leadership a report on the determination and the reasons for
the determination.
(b) Termination of Sanctions and Removal From Report.--
Unless a disapproval resolution is enacted under subsection
(e), the President may terminate the application of sanctions
under section 6 or 7 with respect to a foreign person or
foreign financial institution and remove the foreign person
from the report required under section 5(a) or the foreign
financial institution from the report required under section
5(b), as the case may be, if the Secretary of State, in
consultation with the Secretary of the Treasury, determines
that the actions taken by the foreign person or foreign
financial institution that led to the imposition of
sanctions--
(1) do not have a significant and lasting negative effect
that contravenes the obligations of China under the Joint
Declaration and the Basic Law;
(2) are not likely to be repeated in the future; and
(3) have been reversed or otherwise mitigated through
positive countermeasures taken by that foreign person or
foreign financial institution.
(c) Termination of Act.--
(1) Report.--
(A) In general.--Not later than July 1, 2046, the
President, in consultation with the Secretary of State, the
Secretary of the Treasury, and the heads of such other
Federal agencies as the President considers appropriate,
shall submit to Congress a report evaluating the
implementation of this Act and sanctions imposed pursuant to
this Act.
(B) Elements.--The President shall include in the report
submitted under subparagraph (A) an assessment of whether
this Act and the sanctions imposed pursuant to this Act
should be terminated.
(2) Termination.--This Act and the sanctions imposed
pursuant to this Act shall remain in effect unless a
termination resolution is enacted under subsection (e) after
July 1, 2047.
(d) Exception Relating to Importation of Goods.--
(1) In general.--The authorities and requirements to impose
sanctions under sections 6 and 7 shall not include the
authority or requirement to impose sanctions on the
importation of goods.
(2) Good defined.--In this subsection, the term ``good''
means any article, natural or manmade substance, material,
supply, or manufactured product, including inspection and
test equipment, and excluding technical data.
(e) Congressional Review.--
(1) Resolutions.--
(A) Disapproval resolution.--In this section, the term
``disapproval resolution'' means only a joint resolution of
either House of Congress--
(i) the title of which is as follows: ``A joint resolution
disapproving the waiver or termination of sanctions with
respect to a foreign person that contravenes the obligations
of China with respect to Hong Kong or a foreign financial
institution that conducts a significant transaction with that
person.''; and
(ii) the sole matter after the resolving clause of which is
the following: ``Congress disapproves of the action under
section 8 of the Hong Kong Autonomy Act relating to the
application of sanctions imposed with respect to a foreign
person that contravenes the obligations of China with respect
to Hong Kong, or a foreign financial institution
[[Page S3289]]
that conducts a significant transaction with that person, on
_______ relating to ________.'', with the first blank space
being filled with the appropriate date and the second blank
space being filled with a short description of the proposed
action.
(B) Termination resolution.--In this section, the term
``termination resolution'' means only a joint resolution of
either House of Congress--
(i) the title of which is as follows: ``A joint resolution
terminating sanctions with respect to foreign persons that
contravene the obligations of China with respect to Hong Kong
and foreign financial institutions that conduct significant
transactions with those persons.''; and
(ii) the sole matter after the resolving clause of which is
the following: ``The Hong Kong Autonomy Act and any sanctions
imposed pursuant to that Act shall terminate on ____.'', with
the blank space being filled with the termination date.
(C) Covered resolution.--In this subsection, the term
``covered resolution'' means a disapproval resolution or a
termination resolution.
(2) Introduction.--A covered resolution may be introduced--
(A) in the House of Representatives, by the majority leader
or the minority leader; and
(B) in the Senate, by the majority leader (or the majority
leader's designee) or the minority leader (or the minority
leader's designee).
(3) Floor consideration in house of representatives.--If a
committee of the House of Representatives to which a covered
resolution has been referred has not reported the resolution
within 10 calendar days after the date of referral, that
committee shall be discharged from further consideration of
the resolution.
(4) Consideration in the senate.--
(A) Committee referral.--
(i) Disapproval resolution.--A disapproval resolution
introduced in the Senate shall be--
(I) referred to the Committee on Banking, Housing, and
Urban Affairs if the resolution relates to an action that is
not intended to significantly alter United States foreign
policy with regard to China; and
(II) referred to the Committee on Foreign Relations if the
resolution relates to an action that is intended to
significantly alter United States foreign policy with regard
to China.
(ii) Termination resolution.--A termination resolution
introduced in the Senate shall be referred to the Committee
on Banking, Housing, and Urban Affairs and the Committee on
Foreign Relations.
(B) Reporting and discharge.--If a committee to which a
covered resolution was referred has not reported the
resolution within 10 calendar days after the date of referral
of the resolution, that committee shall be discharged from
further consideration of the resolution and the resolution
shall be placed on the appropriate calendar.
(C) Proceeding to consideration.--Notwithstanding Rule XXII
of the Standing Rules of the Senate, it is in order at any
time after the Committee on Banking, Housing, and Urban
Affairs or the Committee on Foreign Relations, as the case
may be, reports a covered resolution to the Senate or has
been discharged from consideration of such a resolution (even
though a previous motion to the same effect has been
disagreed to) to move to proceed to the consideration of the
resolution, and all points of order against the resolution
(and against consideration of the resolution) are waived. The
motion to proceed is not debatable. The motion is not subject
to a motion to postpone. A motion to reconsider the vote by
which the motion is agreed to or disagreed to shall not be in
order.
(D) Rulings of the chair on procedure.--Appeals from the
decisions of the Chair relating to the application of the
rules of the Senate, as the case may be, to the procedure
relating to a covered resolution shall be decided without
debate.
(E) Consideration of veto messages.--Debate in the Senate
of any veto message with respect to a covered resolution,
including all debatable motions and appeals in connection
with the resolution, shall be limited to 10 hours, to be
equally divided between, and controlled by, the majority
leader and the minority leader or their designees.
(5) Rules relating to senate and house of
representatives.--
(A) Treatment of senate resolution in house.--In the House
of Representatives, the following procedures shall apply to a
covered resolution received from the Senate (unless the House
has already passed a resolution relating to the same proposed
action):
(i) The resolution shall be referred to the appropriate
committees.
(ii) If a committee to which a resolution has been referred
has not reported the resolution within 2 calendar days after
the date of referral, that committee shall be discharged from
further consideration of the resolution.
(iii) Beginning on the third legislative day after each
committee to which a resolution has been referred reports the
resolution to the House or has been discharged from further
consideration thereof, it shall be in order to move to
proceed to consider the resolution in the House. All points
of order against the motion are waived. Such a motion shall
not be in order after the House has disposed of a motion to
proceed on the resolution. The previous question shall be
considered as ordered on the motion to its adoption without
intervening motion. The motion shall not be debatable. A
motion to reconsider the vote by which the motion is disposed
of shall not be in order.
(iv) The resolution shall be considered as read. All points
of order against the resolution and against its consideration
are waived. The previous question shall be considered as
ordered on the resolution to final passage without
intervening motion except 2 hours of debate equally divided
and controlled by the sponsor of the resolution (or a
designee) and an opponent. A motion to reconsider the vote on
passage of the resolution shall not be in order.
(B) Treatment of house resolution in senate.--
(i) Received before passage of senate resolution.--If,
before the passage by the Senate of a covered resolution, the
Senate receives an identical resolution from the House of
Representatives, the following procedures shall apply:
(I) That resolution shall not be referred to a committee.
(II) With respect to that resolution--
(aa) the procedure in the Senate shall be the same as if no
resolution had been received from the House of
Representatives; but
(bb) the vote on passage shall be on the resolution from
the House of Representatives.
(ii) Received after passage of senate resolution.--If,
following passage of a covered resolution in the Senate, the
Senate receives an identical resolution from the House of
Representatives, that resolution shall be placed on the
appropriate Senate calendar.
(iii) No senate companion.--If a covered resolution is
received from the House of Representatives, and no companion
resolution has been introduced in the Senate, the Senate
procedures under this subsection shall apply to the
resolution from the House of Representatives.
(C) Application to revenue measures.--The provisions of
this paragraph shall not apply in the House of
Representatives to a covered resolution that is a revenue
measure.
(6) Rules of house of representatives and senate.--This
subsection is enacted by Congress--
(A) as an exercise of the rulemaking power of the Senate
and the House of Representatives, respectively, and as such
is deemed a part of the rules of each House, respectively,
and supersedes other rules only to the extent that it is
inconsistent with such rules; and
(B) with full recognition of the constitutional right of
either House to change the rules (so far as relating to the
procedure of that House) at any time, in the same manner, and
to the same extent as in the case of any other rule of that
House.
SEC. 9. IMPLEMENTATION; PENALTIES.
(a) Implementation.--The President may exercise all
authorities provided under sections 203 and 205 of the
International Emergency Economic Powers Act (50 U.S.C. 1702
and 1704) to the extent necessary to carry out this Act.
(b) Penalties.--A person that violates, attempts to
violate, conspires to violate, or causes a violation of
section 6 or 7 or any regulation, license, or order issued to
carry out that section shall be subject to the penalties set
forth in subsections (b) and (c) of section 206 of the
International Emergency Economic Powers Act (50 U.S.C. 1705)
to the same extent as a person that commits an unlawful act
described in subsection (a) of that section.
SEC. 10. RULE OF CONSTRUCTION.
Nothing in this Act shall be construed as an authorization
of military force against China.
The bill was ordered to be engrossed for a third reading and was read
the third time.
The question is on adoption of the resolution and passage of the
bill, as amended, en bloc.
The bill (S. 3798), as amended, was passed.
The resolution (S. Res. 596), as amended, was agreed to.
The preamble was agreed to.
(The resolution, with its preamble, is printed in the Record of May
21, 2020, under ``Submitted Resolutions.'')
The PRESIDING OFFICER. The Senator from Missouri.
Mr. HAWLEY. Madam President, this is a good moment for the Senate. I
think this is a moment when we have been able to come together to speak
with one voice and to send a clear message to Beijing that its attempts
to steamroll and destroy the liberties of the people of Hong Kong will
not go unnoticed and will not go unaddressed.
I thank the Senator from Maryland and the Senator from Pennsylvania
for their work with their bill, which will give the administration
important new tools to address and to counter the actions of Beijing.
I just want to say to the people of Hong Kong, whom I have had the
privilege to meet and to be with on the streets as they protest, as
they stand up to this violent and authoritarian regime, I hope that
today's actions will give you an added measure of hope that
[[Page S3290]]
the free people of this Nation and the free people of the world are
with you and that we will not sit idly by; that we will stand up; that
we will take action; and that your cause for your basic rights, your
cause for your basic liberties, is our cause as well.
It is a privilege to stand with you as an American and as a
Missourian, and it is a privilege to see this work accomplished today
on the floor of the Senate.
I thank my colleagues.
I yield the floor.
The PRESIDING OFFICER. The Senator from Maryland.
Mr. VAN HOLLEN. Madam President, I want to thank the Senator from
Missouri for bringing us to the floor last week, for bringing us to the
floor this week, and for working with us to make sure that we could
make important changes to an important resolution that he brought
before us today.
I agree it is a good day for the Senate. Again, I thank the Senator
from Pennsylvania, Mr. Toomey, for his bipartisan work on this.
Hopefully we get it to the President's desk as soon as possible and
send a strong message to the Government of China and send a message to
the people of Hong Kong that we stand with them.
____________________