[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.

                          ____________________