[Congressional Record Volume 170, Number 5 (Wednesday, January 10, 2024)]
[House]
[Pages H31-H33]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TAIWAN NON-DISCRIMINATION ACT OF 2023
Mr. McHENRY. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 540) to require the Secretary of the Treasury to pursue more
equitable treatment of Taiwan at the international financial
institutions, and for other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 540
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 ``Taiwan Non-Discrimination
Act of 2023''.
SEC. 2. FINDINGS.
Congress finds as follows:
(1) As enshrined in its Articles of Agreement, the
International Monetary Fund (IMF) is devoted to promoting
international monetary cooperation, facilitating the
expansion and balanced growth of international trade,
encouraging exchange stability, and avoiding competitive
exchange depreciation.
(2) Taiwan is the 21st largest economy in the world and the
10th largest goods trading partner of the United States.
(3) Although Taiwan is not an IMF member, it is a member of
the World Trade Organization, the Asian Development Bank, and
the Asia-Pacific Economic Cooperation forum.
(4) According to the January 2020 Report on Macroeconomic
and Foreign Exchange Policies of Major Trading Partners of
the United States, published by the Department of the
Treasury, Taiwan held $471,900,000,000 in foreign exchange
reserves, more than major economies such as India, South
Korea, and Brazil.
(5) According to section 4(d) of the Taiwan Relations Act
(Public Law 96-8), enacted on April 10, 1979, ``Nothing in
this Act may be construed as a basis for supporting the
exclusion or expulsion of Taiwan from continued membership in
any international financial institution or any other
international organization.''.
(6) Taiwan held membership in the IMF for 9 years following
the recognition of the People's Republic of China (PRC) by
the United Nations, and 16 Taiwan staff members at the Fund
were allowed to continue their employment after the PRC was
seated at the IMF in 1980. As James M. Boughton has noted in
his Silent Revolution: The International Monetary Fund 1979-
1989, even as the PRC was seated, the United States Executive
Director to the IMF, Sam Y. Cross, expressed support on
behalf of the United States Government for ``some kind of
association between Taiwan and the Fund''.
(7) On September 27, 1994, in testimony before the Senate
Committee on Foreign Relations regarding the 1994 Taiwan
Policy Review, then-Assistant Secretary of State for East
Asian and Pacific Affairs Winston Lord stated: ``Recognizing
Taiwan's important role in transnational issues, we will
support its membership in organizations where statehood is
not a prerequisite, and we will support opportunities for
Taiwan's voice to be heard in organizations where its
membership is not possible.''.
(8) The Congress has repeatedly reaffirmed support for this
policy, including in Public Laws 107-10, 107-158, 108-28,
108-235, 113-17, and 114-139, and the unanimous House and
Senate passage of the Taiwan Allies International Protection
and Enhancement Initiative (TAIPEI) Act of 2019.
(9) In its fact sheet, entitled ``U.S. Relations with
Taiwan'', published on August 31, 2018, the Department of
State asserts: ``The United States supports Taiwan's
membership in international organizations that do not require
statehood as a condition of membership and encourages
Taiwan's meaningful participation in international
organizations where its membership is not possible.''.
(10) According to the Articles of Agreement of the IMF,
``membership shall be open to other countries'', subject to
conditions prescribed by the Board of Governors of the IMF.
(11) In the IMF publication ``Membership and Nonmembership
in the International Monetary Fund: A Study in International
Law and Organization'', Joseph Gold, the then-General Counsel
and Director of the Legal Department of the IMF, elaborated
on the differences between the terms ``countries'' and
``states'', noting that ``the word `country' may have been
adopted because of the absence of agreement on the definition
of a `state' '' and, with respect to the use of ``countries''
and applications for IMF membership, ``the absence of any
adjective in the Articles emphasizes the breadth of the
discretion that the Fund may exercise in admitting countries
to membership''. According to Mr. Gold, ``the desire to give
the Fund flexibility in dealing with applications may explain
not only the absence of any adjective that qualifies
`countries' but also the choice of that word itself''.
(12) In his IMF study, Mr. Gold further observes, ``in the
practice of the Fund the concepts of independence and
sovereignty have been avoided on the whole as a mode of
expressing a criterion for membership in the Fund''. He
continues, ``Although the Fund usually takes into account the
recognition or nonrecognition of an entity as a state, there
are no rules or even informal understandings on the extent to
which an applicant must have been recognized by members or
other international organizations before the Fund will regard
it as eligible for membership.''. In fact, when considering
an application for membership where the status of an
applicant may not be resolved, Mr. Gold writes ``there have
been occasions on which the Fund has made a finding before
decisions had been taken by the United Nations or by most
members or by members with a majority of the total voting
power.'' Mr. Gold concludes, ``the Fund makes its own
findings on whether an applicant is a `country', and makes
them solely for its own purposes.''.
(13) Although not a member state of the United Nations, the
Republic of Kosovo is a member of both the IMF and the World
Bank, having joined both organizations on June 29, 2009.
(14) On October 26, 2021, Secretary of State Antony Blinken
issued a statement in support of Taiwan's ``robust,
meaningful participation'' in the United Nations system,
which includes the IMF, the World Bank, and other specialized
[[Page H32]]
United Nations agencies. Secretary of State Blinken noted,
``As the international community faces an unprecedented
number of complex and global issues, it is critical for all
stakeholders to help address these problems. This includes
the 24 million people who live in Taiwan. Taiwan's meaningful
participation in the UN system is not a political issue, but
a pragmatic one.''. He continued, ``Taiwan's exclusion
undermines the important work of the UN and its related
bodies, all of which stand to benefit greatly from its
contributions.''.
SEC. 3. SENSE OF THE CONGRESS.
It is the sense of the Congress that--
(1) the size, significance, and connectedness of the
Taiwanese economy highlight the importance of greater
participation by Taiwan in the International Monetary Fund,
given the purposes of the Fund articulated in its Articles of
Agreement; and
(2) the experience of Taiwan in developing a vibrant and
advanced economy under democratic governance and the rule of
law should inform the work of the international financial
institutions, including through increased participation by
Taiwan in the institutions.
SEC. 4. SUPPORT FOR TAIWAN ADMISSION TO THE IMF.
(a) In General.--The United States Governor of the
International Monetary Fund (in this section referred to as
the ``Fund'') shall use the voice and vote of the United
States to vigorously support--
(1) the admission of Taiwan as a member of the Fund, to the
extent that admission is sought by Taiwan;
(2) participation by Taiwan in regular surveillance
activities of the Fund with respect to the economic and
financial policies of Taiwan, consistent with Article IV
consultation procedures of the Fund;
(3) employment opportunities for Taiwan nationals, without
regard to any consideration that, in the determination of the
United States Governor, does not generally restrict the
employment of nationals of member countries of the Fund; and
(4) the ability of Taiwan to receive appropriate technical
assistance and training by the Fund.
(b) United States Policy.--It is the policy of the United
States not to discourage or otherwise deter Taiwan from
seeking admission as a member of the Fund.
(c) Waiver.--The Secretary of the Treasury may waive any
requirement of subsection (a) for up to 1 year at a time on
reporting to Congress that providing the waiver will
substantially promote the objective of securing the
meaningful participation of Taiwan at each international
financial institution (as defined in section 1701(c)(2) of
the International Financial Institutions Act).
(d) Sunset.--This section shall have no force or effect on
the earlier of--
(1) the date of approval by the Board of Governors of the
Fund for the admission of Taiwan as a member of the Fund; or
(2) the date that is 10 years after the date of the
enactment of this Act.
SEC. 5. TESTIMONY REQUIREMENT.
In each of the next 7 years in which the Secretary of the
Treasury is required by section 1705(b) of the International
Financial Institutions Act to present testimony, the
Secretary shall include in the testimony a description of the
efforts of the United States to support the greatest
participation practicable by Taiwan at each international
financial institution (as defined in section 1701(c)(2) of
such Act).
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
North Carolina (Mr. McHenry) and the gentlewoman from Ohio (Mrs.
Beatty) each will control 20 minutes.
The Chair recognizes the gentleman from North Carolina.
General Leave
Mr. McHENRY. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
and include extraneous material on this bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from North Carolina?
There was no objection.
Mr. McHENRY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of H.R. 540, the Taiwan Non-
Discrimination Act of 2023, introduced by the vice chair of the
National Security, Illicit Finance, and International Financial
Institutions Subcommittee, the gentlewoman from California (Mrs. Kim).
As China continues to threaten Taiwan, Congress must consider ways to
deter Beijing from future aggression. The House Financial Services
Committee has developed numerous bills to do just that, but countering
China's military ambitions isn't our only focus when it comes to Taiwan
policy.
The U.S. has long supported Taiwan's membership in international
organizations where statehood is not a prerequisite. We also support
longstanding policy to help Taiwan's voice be heard in these
organizations when membership is impossible.
This is positive for Taiwan on the world stage and should be a
priority for the United States Congress.
Unfortunately, over the past 3 years, the Biden administration has
repeatedly fallen short when it comes to our Taiwan policy at the
International Monetary Fund, or the IMF.
The IMF is the world's lender of last resort as well as a key
institution monitoring global economic conditions. As one of the
world's most advanced and innovative economies, Taiwan should be
included under the Fund's activities, yet it has been left out due to
ridiculous concerns over offending China.
The IMF's rules already allow Taiwan to become a member, as Mrs.
Kim's bill clearly lays out in detail. That means our representation
and our representatives at the IMF should support Taiwan if it chooses
to apply.
Mrs. Kim's legislation would make this support explicit and ensure
the Treasury Department voices our support on the board of the IMF.
Joining the IMF would also open up opportunities for Taiwan in other
international financial institutions. This includes the World Bank,
where IMF membership is a prerequisite.
The IMF has no fewer than 190 countries, nearly the totality of the
world. An economy as vital as Taiwan should have a seat at this
important table.
Mr. Speaker, I thank our Democratic colleagues for their support in
keeping this a bipartisan issue, and I thank the bill's sponsor, Mrs.
Kim, for her important leadership, as well.
Mr. Speaker, I urge my colleagues to support the bill, and I reserve
the balance of my time.
Mrs. BEATTY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of H.R. 540, the bipartisan Taiwan
Non-Discrimination Act, sponsored by Congresswoman Kim of California
and Congressman Green of Texas.
This bill would require the United States to advocate for Taiwan's
membership and meaningful participation at the International Monetary
Fund, or IMF, to the extent that admission is sought by Taiwan.
IMF membership provides several nonprofit benefits to participants,
such as access to information on members' economic policies; access to
technical assistance related to banking, fiscal affairs, and exchange
issues; financial support in times of payment distress; and
opportunities for trade and investment.
If IMF admission is sought by Taiwan, this bill would further require
the United States to press the IMF to monitor and evaluate the health
of Taiwan's economy; provide technical support to Taiwanese officials
regarding microeconomic, monetary, and budget policies; and support
employment opportunities at the IMF for Taiwan nationals.
{time} 1445
To date, Taiwan has not formally requested membership at the IMF. I
also understand that Taiwan does not intend to request membership this
Congress and is, instead, focusing on other organizations such as the
World Health Organization and the International Criminal Police
Organization, INTERPOL. We respect that and appreciate the structure of
this bill that positions the United States to act should Taiwan request
membership.
I also believe it is critical that the United States continue to
signal unequivocal opposition to the prospect of China using force in
an effort to take control of Taiwan, especially as China is watching
Russia's invasion of Ukraine. Democrats have been sounding the alarm,
and I will repeat this warning here today: We must provide additional
funding for Ukraine or we risk emboldening China's aggression against
Taiwan.
While I support this bill and all efforts to prevent conflict in the
Taiwan Strait, I am concerned that if Congress cannot come together to
provide additional funding for Ukraine, our efforts here today will be
in vain.
Mr. Speaker, I urge my colleagues to support this bill, and I reserve
the balance of my time.
Mr. McHENRY. Mr. Speaker, I yield 3 minutes to the gentlewoman from
California (Mrs. Kim).
Mrs. KIM of California. Mr. Speaker, I thank Mr. McHenry for yielding
and supporting my legislation. I also thank Representative Green of
Texas for co-leading this bill, H.R. 540, and making it a bipartisan
effort.
Mr. Speaker, I rise in strong support of this bill, H.R. 540, the
Taiwan Non-Discrimination Act.
Longstanding U.S. policy towards Taiwan has supported its membership
[[Page H33]]
in international organizations where statehood is not a prerequisite.
The U.S. also advocates for Taiwan's voice to be heard where
membership is not possible. This principle has lasted decades across
Republican and Democratic administrations, and it has repeatedly been
reaffirmed in bills passed by Congress.
My bill is straightforward. It requires the Treasury Department to
implement our Taiwan policy at the International Monetary Fund, or IMF.
Taiwan is not required to be a member state of the United Nations in
order to gain membership in the IMF. For example, Kosovo, also not a
U.N. member, has belonged to the IMF for over a decade.
If Taiwan seeks admission to the IMF, then the Treasury Department
should carry out our longstanding U.S. policy and support its
application. While Taiwan awaits its admission to the IMF, H.R. 540
encourages the U.S. Governor of the IMF to support integrating Taiwan
into the IMF's regular economic monitoring activities and Taiwanese
nationals with equal employment opportunities at the IMF.
The IMF is devoted to monetary cooperation, exchange rate stability,
and the growth of international trade. Taiwan is one of our top 10
trading partners, and it has the fifth largest cash reserves of any
foreign country; greater than Brazil, South Korea, Mexico, or any
European country except Switzerland.
At a time when China has been threatening the work of the IMF through
its nontransparent lending abroad and its lack of cooperation with
other creditors, we must focus the IMF on effective international
cooperation.
Mr. Speaker, advocating for Taiwan's membership in the IMF would also
unlock additional opportunities for the country in other international
financial institutions, as was mentioned, one of which is the World
Bank which requires countries to first be members of the IMF before
becoming a member of World Bank.
With Taiwan's election taking place this week, I urge my colleagues
to vote in favor of H.R. 540 and send the Taiwanese people a strong
message of solidarity and support for their democracy.
Mrs. BEATTY. Mr. Speaker, I reserve the balance of my time.
Mr. McHENRY. Mr. Speaker, I yield 2 minutes to the gentleman from
Missouri (Mr. Luetkemeyer), the chair of the National Security, Illicit
Finance, and International Financial Institutions Subcommittee.
Mr. LUETKEMEYER. Mr. Speaker, I thank the chairman for yielding and
thank him for managing the floor today. I was supposed to do that, and
I got stuck in a snowstorm and slid all the way here, but I am here and
glad to be here.
Before us today are a number of bills that originated in the National
Security, Illicit Finance, and International Financial Institutions
Subcommittee which I chair. I commend the sponsors for their diligent
commitment to crafting meaningful policy.
Congressman Meuser's China Exchange Rate Transparency Act of 2023
will provide much-needed transparency to China's use of tools to impact
the exchange rate, and their actions to threaten the core mission of
the IMF.
Ensuring China plays by the same rules of the road as everyone else
has been and will continue to be a focus of my National Security,
Illicit Finance, and International Financial Institutions Subcommittee.
H.R. 803, the PROTECT Taiwan Act, has been a project dutifully
undertaken by Congressman Lucas. This legislation will send an
unwavering message that if the Xi Jinping regime is seeking to provoke
a war in Taiwan, China will face a new reality, exclusion from the
international community. I thank Congressman Lucas for this strong
bipartisan solution to China's aggression.
Finally, as we heard from Vice Chair Congresswoman Kim, H.R. 540, the
Taiwan Non-Discrimination Act of 2023, will ensure that Taiwan's voice
is properly heard at the IMF. Ultimately, the decision to apply for
membership into the IMF, and subsequently the World Bank and other
international financial institutions, belongs to Taiwan. However, if
they so choose to apply, the United States should be unequivocally
supportive.
I thank the gentlewoman for her unwavering support to defend Taiwan
and ensuring that the international financial institutions which my
subcommittee oversees prioritize Taiwan policy at the IMF. I also thank
Chairman McHenry for his work on the full committee.
Mr. McHENRY. Mr. Speaker, I am prepared to close, and I reserve the
balance of my time.
Mrs. BEATTY. Mr. Speaker, since the gentleman from North Carolina has
no further speakers, I yield myself the balance of my time to close.
This legislation from Congresswoman Kim and Congressman Green directs
the United States to support Taiwan should the island pursue
participation in the IMF.
Mr. Speaker, I again urge my colleagues to support this bill and
yield back the balance of my time.
Mr. McHENRY. Mr. Speaker, I would just reiterate that Mrs. Kim's bill
is critical to strengthening both our national security and the global
economy. I think it is important that we state clearly as the United
States Congress our support for Taiwan.
Taiwan has one of the world's most advanced and innovative economies
and should be included under the IMF's activities.
I urge my colleagues to support this bill and thank my Democratic
colleagues on the House Financial Services Committee for working with
committee Republicans on supporting this bill.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from North Carolina (Mr. McHenry) that the House suspend the
rules and pass the bill, H.R. 540, 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. McHENRY. Mr. Speaker, I object to the vote on the ground that a
quorum is not present and make the point of order that a quorum is not
present.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this question will be postponed.
The point of no quorum is considered withdrawn.
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