[Congressional Record (Bound Edition), Volume 146 (2000), Part 12]
[Senate]
[Pages 17558-17563]
[From the U.S. Government Publishing Office, www.gpo.gov]



                          AMENDMENTS SUBMITTED

                                 ______
                                 

                    U.S.-CHINA RELATIONS ACT OF 2000

                                 ______
                                 

                        BYRD AMENDMENT NO. 4131

  Mr. BYRD proposed an amendment to the bill (H.R. 4444) to authorize 
extension of nondiscriminatory treatment (normal trade relations 
treatment) to the People's Republic of China, and to establish a 
framework for relations between the United States and the People's 
Republic of China; as follows:

       Beginning on page 16, strike line 11 and all that follows 
     through line 2 on page 17 and insert the following:
       ``(k) Standard for Presidential Action.--
       ``(1) Findings.--Congress finds that--
       ``(A) market disruption causes serious harm to the United 
     States industrial and agricultural sectors which has grave 
     economic consequences;
       ``(B) product-specific safeguard provisions are a critical 
     component of the United States-China Bilateral Agreement to 
     remedy market disruptions; and
       ``(C) where market disruption occurs it is essential for 
     the Commission and the President to comply with the timeframe 
     stipulated under this Act.
       ``(2) Timeframe for action.--Not later than 15 days after 
     receipt of a recommendation from the Trade Representative 
     under subsection (h) regarding the appropriate action to take 
     to prevent or remedy a market disruption, the President shall 
     provide import relief for the affected industry pursuant to 
     subsection (a), unless the President determines and certifies 
     to the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate 
     that provision of such relief is not in the national economic 
     interest of the United States or, in extraordinary cases, 
     that taking action pursuant to subsection (a) would cause 
     serious harm to the national security of the United States.
       ``(3) Basis for presidential certification.--The President 
     may determine and certify under paragraph (2) that providing 
     import relief is not in the national economic interest of the 
     United States only if the President finds that taking such 
     action would have an adverse impact on the United States 
     economy clearly greater than the benefits of such action.
       ``(4) Automatic relief.--
       ``(A) In general.--If, within 70 days after receipt of the 
     Commission's report described in subsection (g), the 
     President and the United States Trade Representative have not 
     taken action with respect to denying or granting the relief 
     recommended by the Commission, the relief shall automatically 
     take effect.
       ``(B) Period relief in effect.--The relief provided for 
     under subparagraph (A) shall remain in effect without regard 
     to any other provision of this section.
                                 ______
                                 

                      THOMPSON AMENDMENT NO. 4132

  Mr. THOMPSON proposed an amendment to the bill; H.R. 4444, supra; as 
follows:

       At the end of the bill, insert the following new title:

                     TITLE--CHINA NONPROLIFERATION

     SEC. __01. SHORT TITLE.

       This title may be cited as the ``China Nonproliferation 
     Act''.

     SEC. __02. DEFINITIONS.

       In this title:
       (1) Covered country.--The term ``covered country'' means 
     the following:
       (A) Relationship to most current report.--Any country 
     identified by the Director of Central Intelligence as a 
     source or supply of dual-use and other technology in the most 
     current report required pursuant to section 721 of the 
     Intelligence Authorization Act for Fiscal Year 1997 (or any 
     successor report on the acquisition by foreign countries of 
     dual use and other technology useful for the development or 
     production of weapons of mass destruction).
       (B) Countries previously included.--Any country that was 
     previously included in a report described in subparagraph 
     (A), but that subsequently is not included in such report. A 
     country described in the preceding sentence shall continue to 
     be considered a covered country for purposes of this title 
     unless and until such country has not been identified by the 
     Director of Central Intelligence in the report described in 
     subparagraph (A) for 5 consecutive years.
       (C) Initial countries.--On the date of enactment of this 
     Act, China, Russia, and North Korea shall be considered 
     covered countries for purposes of this Act and shall continue 
     to be considered covered countries pursuant to subparagraph 
     (B).
       (2) Cruise missile.--The term ``cruise missile'' means any 
     cruise missile with 300 or more kilometers of range 
     capability or 500 or more kilograms of payload capability.
       (3) Goods, services, or technology.--The term ``goods, 
     services, or technology'' means any goods, services, or 
     technology--

[[Page 17559]]

       (A) listed on--
       (i) the Nuclear Suppliers Group Guidelines for the Export 
     of Nuclear Material, Equipment and Technology (published by 
     the International Atomic Energy Agency as Information 
     Circular INFCIRC/254/Rev. 3/Part 1, and subsequent revisions) 
     and Guidelines for Transfers of Nuclear-Related Dual-Use 
     Equipment, Material, and Related Technology (published by the 
     International Atomic Energy Agency as Information Circular 
     INFCIRC/254/Rev. 3/Part 2, and subsequent revisions);
       (ii) the Missile Technology Control Regime Equipment and 
     Technology Annex of June 11, 1996, and subsequent revisions;
       (iii) the Schedules of the Convention on the Prohibition of 
     the Development, Production, Stockpiling and Use of Chemical 
     Weapons and on Their Destruction, including chemicals, 
     precursors, and other substances;
       (iv) the lists of items and substances relating to 
     biological and chemical weapons the export of which is 
     controlled by the Australia Group; or
       (v) the Wassenaar Arrangement list of Dual Use Goods and 
     Technologies and Munitions list of July 12, 1996, and 
     subsequent revisions; or
       (B) prohibited or controlled for export to any covered 
     country under this title; and

     includes any information and know-how (whether in tangible or 
     intangible form) that can be used to design, produce, 
     manufacture, utilize, improve, or reconstruct the goods, 
     services, or technology identified in this section.
       (4) Person.--The term ``person'' includes--
       (A) any individual, or partnership, corporation, business 
     association, society, trust, organization, or any other group 
     created or organized under the laws of a country; and
       (B) any governmental entity.
       (5) Proliferation activity.--The term ``proliferation 
     activity'' means the activity described in section 
     __03(a)(1).
       (6) United states assistance.--The term ``United States 
     assistance'' means--
       (A) any assistance under the Foreign Assistance Act of 
     1961, other than urgent humanitarian assistance or medicine;
       (B) sales and assistance under the Arms Export Control Act; 
     and
       (C) financing under the Export-Import Bank Act.

     SEC. __03. REPORTS ON PROLIFERATION TO ENHANCE CONGRESSIONAL 
                   OVERSIGHT.

       (a) Reports.--
       (1) In general.--The President shall, at the times 
     specified in subsection (b), submit to the Committee on 
     International Relations of the House of Representatives, the 
     Committee on Foreign Relations of the Senate, the Committee 
     on Armed Services of the Senate, the Select Committee on 
     Intelligence of the Senate, and the Committee on Governmental 
     Affairs of the Senate, a report identifying every person of a 
     covered country for whom there is credible information 
     indicating that such person, on or after January 1, 2000--
       (A) contributed to the design, development, production, or 
     acquisition of nuclear, chemical, or biological weapons or 
     ballistic or cruise missiles by a foreign person who is not a 
     national of the covered country, or otherwise engaged in any 
     activity prohibited under--
       (i) Article I, paragraph 1, of the Chemical Weapons 
     Convention;
       (ii) Articles I and III of the Biological Weapons 
     Convention; or
       (iii) Articles I and III of the Treaty on the 
     Nonproliferation of Nuclear Weapons; or
       (B) contributed to the design, development, production, or 
     acquisition of nuclear, chemical, or biological weapons or 
     ballistic or cruise missiles through the diversion of United 
     States goods, services, or technology.
       (2) Action by persons identified.--The President shall 
     include in the report the activities by reported persons that 
     warranted inclusion in the report, and information on any 
     action taken by a person identified in a prior annual report 
     under this subsection that establishes that the person has 
     discontinued, rectified, or mitigated a prior proliferation 
     activity identified under this title.
       (3) Action by president.--The President shall include in 
     the report information on actions taken by the President 
     under sections __04 and __05, and the reasons therefore, in 
     response to proliferation activities conducted by persons 
     identified in this section. The President shall include in 
     the report information on any determinations made under 
     section __07. If the President fails to exercise the 
     authority under sections __04 and __05, or if the President 
     makes a determination under section __07, with respect to a 
     person identified in a report submitted pursuant to this 
     section, the President shall include that information and the 
     reasons therefore in the report required under this section.
       (4) Other information.--In addition to the information 
     required by paragraphs (1) through (3), the President shall 
     include in the report information on--
       (A) noncompliance with any international arms control, 
     disarmament or nonproliferation treaties, agreements, 
     arrangements, or commitments (verbal, written, or otherwise) 
     by covered countries;
       (B) noncompliance with United States export control laws, 
     Executive orders, regulations, or export license conditions 
     by covered countries;
       (C) the performance of the Department of Commerce in 
     licensing, regulating, and controlling the export of dual-use 
     technology to covered countries, including the number and 
     type of post-shipment verifications conducted and enforcement 
     actions taken;
       (D) the threats to the national security interests of the 
     United States, or the security interests of its allies 
     resulting from--
       (i) proliferation activities on the part of covered 
     countries or persons identified in reports submitted under 
     this section;
       (ii) the transfer or sale to the government of, or persons 
     within, a covered country of dual-use technologies and goods 
     listed on the Commerce Control List;
       (iii) the misuse or diversion by the government of a 
     covered country of dual-use technology; or
       (iv) the transfer or sale of goods, services, or technology 
     identified by the Director of Central Intelligence as having 
     a significant potential to make a contribution to the 
     development, improvement, or production of nuclear, 
     biological, or chemical weapons, or of ballistic or cruise 
     missile systems; and
       (E) transfers to the government of, or persons within, a 
     covered country under arms control, disarmament, or 
     nonproliferation agreements and any indication that a covered 
     country has engaged in a proliferation activity under the 
     auspices of such agreements.
       (b) Timing of Reports.--The reports required under 
     subsection (a) shall be submitted no later than 90 days after 
     the date of enactment of this Act, and on June 1 of each year 
     thereafter.
       (c) Exception.--Any person that has engaged in 
     proliferation activities on behalf of, or in concert with, 
     the Government of the United States is not required to be 
     identified on account of that violation in any report 
     submitted under this section.
       (d) Submission in Classified Form.--The reports required by 
     this section shall be submitted in unclassified form, with 
     classified annexes as necessary. The President shall ensure 
     that appropriate procedures are in place for the protection 
     of sensitive intelligence sources and methods in both the 
     reports and the annexes.

     SEC. __04. APPLICATION OF MEASURES TO CERTAIN PERSONS.

       (a) Application of Measures.--Subject to section __07, if 
     the President determines that a person identified in a report 
     submitted pursuant to section __03(a) has engaged in an 
     activity described under section __03(a)(1) the President 
     shall apply to such person, for such period of time as the 
     President may determine but not less than 1 year, all of the 
     measures described in subsection (b).
       (b) Description of Measures.--The measures referred to in 
     subsection (a) are the following:
       (1) Executive order no. 12938 prohibitions.--Imposition of 
     the measures set forth in subsections (b) and (c) of section 
     4 of Executive Order No. 12938 (as in effect on July 29, 
     1998).
       (2) Arms export prohibition.--Prohibition on United States 
     Government transfers or sales to such person of any item on 
     the United States Munitions List as in effect on August 8, 
     1995, and termination of all sales and after-sale servicing 
     to such person of any defense articles, defense services, or 
     design and construction services under the Arms Export 
     Control Act.
       (3) Dual-use export prohibition.--Denial of licenses, 
     suspension of existing licenses, and termination of all 
     transfers or sales and after-sale servicing to such person of 
     any item the export of which is controlled under the Export 
     Administration Act of 1979 (as extended pursuant to the 
     International Emergency Economic Powers Act) or the Export 
     Administration regulations.
       (4) United states assistance prohibition.--Prohibition on 
     the provision of United States assistance in the form of 
     grants, loans, credits, guarantees, or otherwise, to such 
     person.
       (5) Suspension of agreements.--Immediate suspension of any 
     agreements or efforts for the co-development or co-production 
     with such person of any item on the United States Munitions 
     List.
       (c) Effective Date of Measures.--Each measure imposed 
     pursuant to subsection (a) shall take effect with respect to 
     such person 30 days after the date that the report 
     identifying the person is submitted to Congress.
       (d) Publication in Federal Register.--Notice of the 
     imposition of the measures described in subsection (b) to a 
     person identified pursuant to section __03(a) shall be 
     published in the Federal Register, unless the President 
     determines that such publication would threaten the national 
     security or intelligence interests of the United States.
       (e) Duration of Measures.--Each measure imposed under this 
     section shall apply for a period of at least 12 months 
     following the imposition of the measure and shall cease to 
     apply only if the President determines and certifies to 
     Congress that--
       (1) the person with respect to whom the determination was 
     made under section __03(a) has ceased the activities for 
     which the measure was imposed;

[[Page 17560]]

       (2) the person has taken reasonable steps to rectify the 
     violation; and
       (3) the President has received reasonable assurances from 
     the person that such person will not engage in similar 
     activities in the future.

     SEC. __05. APPLICATION OF ADDITIONAL MEASURES DIRECTED AT 
                   GOVERNMENTS OF COVERED COUNTRIES.

       (a) In addition to the measures described in section __04 
     applied against persons identified pursuant to section 
     __03(a), the President is authorized to apply additional 
     measures as follows against any or all of the covered 
     countries:
       (1) Suspension of all military-to-military contacts and 
     exchanges between the covered country and the United States.
       (2) Suspension of all United States assistance to the 
     covered country by the United States Government.
       (3) Prohibition on United States bank loans or bond 
     offerings in United States markets on the part of any 
     national of a covered country.
       (4) Prohibition on the transfer or sale or after-sale 
     servicing, including the provision of replacement parts, to 
     the covered country or any national of the covered country of 
     any item on the United States Munitions List and suspension 
     of any agreement with the covered country or any national of 
     the covered country for the co-development or co-production 
     of any item on the United States Munitions List.
       (5) Suspension of all scientific, academic, and technical 
     exchanges between the covered country and the United States.
       (6) Direction of the Export-Import Bank of the United 
     States not to approve the issuance of any guarantees, 
     insurance, extension of credit, or participation on the 
     extension of credit to the covered country, except for the 
     purchase of agricultural commodities, medicine, medical 
     supplies, or humanitarian assistance.
       (7) Denial of access to the capital markets of the United 
     States by all state-owned enterprises of the covered country.
       (8) Prohibition on the transfer or sale to the covered 
     country or any national of the covered country of any item on 
     the Commerce Control List that is controlled for national 
     security purposes and prohibition of after-sale servicing, 
     including the provision of replacement parts for such items.
       (9) Prohibition on procurement by the United States 
     Government or entering into any contract for the procurement 
     of, any goods or services from the covered country or any 
     national of the covered country.
       (10) Designation of the covered country in a country tier 
     under the Export Administration Regulations that is higher 
     than the country tier in effect.
       (11) Denial of access to the capital markets of the United 
     States by any company owned or controlled by nationals of the 
     covered country.
       (12) Prohibition on the transfer or sale to the covered 
     country or any national of the covered country of any item on 
     the Commerce Control List and prohibition of after-sale 
     servicing, including the provision of replacement parts for 
     such items.

     SEC. __06. PROCEDURES FOR CONGRESSIONAL REVIEW.

       (a) Written Justification.--Any notification submitted by 
     the President under section __03 indicating that the 
     President is not imposing a measure or exercising authority 
     under section __04 or__05 or that the President is making a 
     determination under section __07(a) (1) or (2) shall include 
     a written justification describing in detail the facts and 
     circumstances relating specifically to the person identified 
     in a report submitted pursuant to section __03(a) that 
     supports the President's decision not to exercise the 
     authority of section __04 or __05 or the President's decision 
     to make a determination under section __07(a) (1) or (2) with 
     respect to that person.
       (b) Congressional Action.--If Congress receives a 
     notification described in section __03 and does not agree 
     with the justification described in subsection (a), the 
     appropriate measure shall be imposed with respect to the 
     person identified in the notification if a joint resolution 
     described in this section is enacted into law.
       (c) Joint Resolution.--
       (1) Definition.--For purposes of this section, a joint 
     resolution means a resolution introduction by one-fifth of 
     the Members of either House of Congress within 90 days after 
     the date the notification described in section __03 is 
     received, the resolving clause of which contains only the 
     following: ``That Congress does not agree with the 
     justification with respect to ______ contained in the 
     notification submitted by the President pursuant to the China 
     Nonproliferation Act on ____ and that the President shall 
     exercise the mandatory measures under section __04 of the Act 
     with respect to _____ .''; or ``That Congress does not agree 
     with the justification with respect to ____ contained in the 
     notification submitted by the President pursuant to the China 
     Nonproliferation Act on ____ and that the President shall 
     exercise the mandatory measures under section __04 of the Act 
     with respect to ____ and 1 or more measures under section 
     __05 of the Act.''; with the first and third blank spaces 
     being filled with the appropriate person identified under 
     section __03(a) and with the second blank being filled with 
     the appropriate date.
       (2) Referral to committee.--
       (A) Senate.--A joint resolution introduced in the Senate 
     shall be referred to the Committee on Foreign Relations of 
     the Senate.
       (B) House of representatives.--A joint resolution 
     introduced in the House of Representatives shall be referred 
     to the Committee on International Relations of the House of 
     Representatives.
       (C) Reporting.--A joint resolution may not be reported 
     before the 8th day after the date on which the joint 
     resolution is introduced.
       (3) Discharge of committee.--If the committee to which the 
     joint resolution is referred in either House has not reported 
     the joint resolution (or an identical joint resolution) at 
     the end of 15 calendar days during which that House is in 
     session after the date on which the joint resolution is 
     introduced--
       (A) the committee shall be deemed to be discharged from 
     further consideration of the joint resolution; and
       (B) the joint resolution shall be placed on the appropriate 
     calendar of that House.
       (4) Floor consideration.--
       (A) In general.--
       (i) Motion to proceed to consideration.--When the committee 
     to which a joint resolution is referred in either House has 
     reported, or has been deemed to be discharged (under 
     paragraph (3)) from further consideration of, a joint 
     resolution--

       (I) it is at any time thereafter in order (even though a 
     previous motion to the same effect has been disagreed to) for 
     any Member of that House to move to proceed to the 
     consideration of the joint resolution; and
       (II) all points of order against the joint resolution (and 
     against consideration of the joint resolution) are waived.

       (ii) Treatment of motion.--A motion under clause (i)--

       (I) is privileged in the Senate and is highly privileged in 
     the House of Representatives;
       (II) is not debatable; and
       (III) is not subject to amendment, a motion to postpone, or 
     a motion to proceed to the consideration of other business.

       (iii) No motion to reconsider.--A motion to reconsider the 
     vote by which a motion under clause (i) is agreed to or 
     disagreed to shall not be in order.
       (iv) Agreement to motion.--If a motion under clause (i) is 
     agreed to, the joint resolution shall remain the unfinished 
     business of the House until the House disposes of the joint 
     resolution.
       (B) Debate.--
       (i) Time.--Debate on a joint resolution, and on all 
     debatable motions and appeals in connection with 
     consideration of a joint resolution, shall be limited to not 
     more than 10 hours, which shall be divided equally between 
     those favoring and those opposing the joint resolution. A 
     motion further to limit debate is in order and not debatable.
       (ii) Amendments and motions out of order.--An amendment to 
     a joint resolution, a motion to postpone, to proceed to the 
     consideration of other business, or to recommit such a joint 
     resolution, or a motion to reconsider the vote by which such 
     a joint resolution is agreed to or disagreed is not in order.
       (C) Vote on final passage.--A vote on final passage of the 
     joint resolution shall be taken in each House on or before 
     the close of the 15th calendar day during which that House is 
     in session after the resolution is reported by the committee 
     of that House to which it was referred, or after the 
     committee has been discharged from further consideration of 
     the resolution.
       (D) Rulings of the chair on procedure.--Appeals from the 
     decisions of the Chair relating to the application of the 
     rules of either House to the procedure relating to a joint 
     resolution shall be decided without debate.
       (5) Coordination with action by other house.--
       (A) In general.--If, before the passage by 1 House of a 
     joint resolution of that House, that House receives from the 
     other House a joint resolution, the procedures stated in this 
     paragraph shall apply.
       (B) No referral.--The joint resolution of the other House 
     shall not be referred to a committee.
       (C) Procedure.--With respect to a joint resolution of the 
     House receiving the joint resolution--
       (i) the procedure in that House shall be the same as if no 
     joint resolution had been received from the other House; but
       (ii) the vote on final passage shall be on the joint 
     resolution of the other House.
       (6) Rules of the senate and the house of representatives.--
     This subsection is enacted by Congress--
       (A) as an exercise of the rulemaking power of the Senate 
     and the House of Representatives, respectively and--
       (i) is deemed a part of the rules of each House, 
     respectively, but applicable only with respect to the 
     procedure to be followed in that House in the case of a joint 
     resolution; and
       (ii) supersedes other rules only to the extent that the 
     subsection is inconsistent with those rules; and
       (B) with full recognition of the constitutional right of 
     either House to change the

[[Page 17561]]

     rules (so far as the rules relate 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. __07. DETERMINATION EXEMPTING PERSON OR COVERED COUNTRY 
                   FROM SECTIONS __04, __05, AND __08.

       (a) In General.--Sections __04, __05, and __08, shall not 
     apply to a person or to a covered country 15 days after the 
     President reports to the Committee on International Relations 
     of the House of Representatives, the Committee on Foreign 
     Relations of the Senate, the Committee on Armed Services of 
     the Senate, the Select Committee on Intelligence of the 
     Senate, and the Committee on Governmental Affairs of the 
     Senate, that the President has determined, on the basis of 
     information provided by that person or covered country, or 
     otherwise obtained by the President, that--
       (1) the person did not, on or after January 1, 2000, engage 
     in proliferation activities, the apparent engagement in which 
     caused the person to be identified in a report submitted 
     pursuant to section __03(a);
       (2) the person is subject to the primary jurisdiction of a 
     government that is an adherent to 1 or more relevant 
     nonproliferation regimes, the person was identified in a 
     report submitted pursuant to section __03(a) with respect to 
     a transfer of goods, services, or technology described in 
     section __03(a)(1), and such transfer was made consistent 
     with the guidelines and parameters of all such relevant 
     regimes of which such government is an adherent; or
       (3) it is important to the national security of the United 
     States not to apply the provisions of section __04 or __05.
       (b) Waiver for Action by Covered Country.--Section __05 
     shall not apply to a covered country 15 days after the 
     President reports to the Committee on International Relations 
     of the House of Representatives, the Committee on Foreign 
     Relations of the Senate, the Committee on Armed Services of 
     the Senate, the Select Committee on Intelligence of the 
     Senate, and the Committee on Governmental Affairs of the 
     Senate, that the President has determined, on the basis of 
     information provided by the covered country, or otherwise 
     obtained by the President, that--
       (1) the covered country did not support or participate in 
     the proliferation activities identified pursuant to section 
     __03(a); and
       (2) the covered country is taking reasonable steps to 
     penalize persons identified pursuant to section __03(a) for 
     their proliferation activities and to deter and prevent 
     future proliferation activities.
       (c) Opportunity To Provide Information.--Congress urges the 
     President--
       (1) in every appropriate case, to contact in a timely 
     fashion each person identified in each report submitted 
     pursuant to section __03(a) or the covered country, in order 
     to afford such person or covered country the opportunity to 
     provide explanatory, exculpatory, or other additional 
     information with respect to the proliferation activities that 
     caused such person to be identified in a report submitted 
     pursuant to section __03(a); and
       (2) to exercise the authority in subsection (a) in all 
     cases where information obtained from a person identified in 
     a report submitted pursuant to section __03(a), or from the 
     covered country, establishes that the exercise of such 
     authority is warranted.
       (d) Effect on Certain Exports.--Nothing in this title shall 
     prohibit or limit the overseas market development activities 
     by the United States Department of Agriculture or the export 
     of agricultural commodities, medicine, medical supplies, or 
     humanitarian assistance.

     SEC. __08. NOTIFICATION TO SECURITIES COMMISSION OF INCLUSION 
                   IN REPORT.

       (a) Definitions.--In this section, the following 
     definitions shall apply:
       (1) Commission.--The term ``Commission'' means the 
     Securities and Exchange Commission.
       (2) Registered national securities association.--The term 
     ``registered national securities association'' means an 
     association registered under section 15A(b) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78o-3(b)).
       (3) Registered national securities exchange.--The term 
     ``registered national securities exchange'' means a national 
     securities exchange registered under section 6 of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78f).
       (4) Registration statement.--The term ``registration 
     statement'' has the same meaning as in section 2 of the 
     Securities Act of 1933 (15 U.S.C. 77b).
       (5) Securities laws.--The term ``securities laws'' and 
     ``security'' have the same meanings as in section 3 of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78c).
       (b) Notification to the Commission.--Each report prepared 
     by the President under section __03 shall be transmitted to 
     the Commission at the times specified in section __03(b).
       (c) Regulations.--Not later than 6 months after the date of 
     enactment of this Act, the Commission shall promulgate 
     regulations--
       (1) to ensure that securities investors are notified of the 
     identity of any person included in a report prepared by the 
     President under section __03, the securities of which are 
     listed, or authorized for listing, on a registered national 
     securities exchange (or tier or segment thereof) or by a 
     registered national securities association; and
       (2) to require each person included in a report of the 
     President under section __03 to provide notice of such 
     inclusion in each written report, statement, or other filing 
     or notice required from that person under the securities 
     laws, including--
       (A) any registration statement;
       (B) any annual or quarterly report, statement, or other 
     filing or notice;
       (C) any proxy, consent, authorization, information 
     statement, or other notice required to be sent to 
     shareholders with respect to any security registered pursuant 
     to the securities laws;
       (D) any report, statement, or other filing or notice 
     required in connection with an initial public offering; and
       (E) any report, statement, or other filing required in 
     connection with a merger, acquisition, tender offer, or 
     similar transaction.

     SEC. __09. NATIONAL SECURITY ASSESSMENT.

       In order to ensure that the threat posed by proliferation 
     activity to United States national security and to American 
     Armed Forces deployed abroad is given adequate consideration, 
     the Secretary of Defense shall include as part of the 
     Department of Defense's Quadrennial Defense Review--
       (1) an assessment of the effect on the national security of 
     the United States and its Armed Forces of transactions by 
     countries determined to be key suppliers of weapons of mass 
     destruction and the means to deliver those weapons;
       (2) recommendations for changes in United States defense 
     strategy that could effectively deal with the threats posed 
     by the proliferation of weapons of mass destruction and the 
     means to deliver those weapons; and
       (3) an assessment of the cost to the United States of 
     developing systems to address the security challenges posed 
     by the proliferation of weapons of mass destruction and the 
     means to deliver those weapons.

     SEC. __10. SENSE OF CONGRESS; POLICY.

       (a) Sense of Congress.--It is the sense of Congress that--
       (1) the proliferation of weapons of mass destruction, 
     ballistic and cruise missiles, and enabling technologies 
     represents a clear and serious threat to the security of the 
     United States, its friends and allies, and to regional and 
     global stability;
       (2) all nations engaged in the design, development, or 
     production of goods, services, or technology that contribute, 
     or could contribute, to such proliferation, should join the 
     United States in eliminating proliferation by strengthening 
     and broadening existing multilateral nonproliferation and 
     export control regimes, and by strengthening their own 
     domestic nonproliferation and export control regimes;
       (3) the President should continue to seek agreement with 
     countries that are considered to be significant 
     proliferators, to adhere to the provisions and guidelines of 
     existing multilateral nonproliferation and export control 
     regimes as responsible members of the world community, and to 
     strengthen their own national controls over sensitive items 
     and technologies;
       (4) the President should fully and vigorously enforce 
     current United States nonproliferation and export control 
     laws and regulations, including the Arms Export Control Act, 
     the Export Administration Act, and the Iran Nonproliferation 
     Act; and
       (5) additional budgetary and other resources should be 
     provided to the United States intelligence agencies charged 
     with detecting, assessing, and reporting incidents of 
     proliferation activity and technology diversion, so that the 
     agencies can focus greater attention and resources on 
     countries identified as key suppliers of sensitive 
     technologies.
       (b) Multilateral Control Regimes.--
       (1) Policy.--It is the policy of the United States to seek 
     multilateral nonproliferation and export control arrangements 
     that support the national security objectives of the United 
     States.
       (2) Participation in existing regimes.--Congress encourages 
     the United States to continue its active participation in 
     existing multilateral nonproliferation and export control 
     regimes.
       (3) Strengthening existing regimes.--Congress urges the 
     President to strengthen existing multilateral 
     nonproliferation and export control regimes in order to 
     confront countries and entities engaged in a pattern or 
     practice of proliferation, by--
       (A) harmonizing national laws and regulations with regard 
     to enforcing the provisions and guidelines of existing 
     multilateral nonproliferation and export control regimes;
       (B) harmonizing export license approval procedures and 
     practices, and eliminating the practice of undercutting;
       (C) periodically reviewing and updating multilateral regime 
     nonproliferation and export control lists with other members 
     of the multilateral regime, taking into account first and 
     foremost, national security concerns; and
       (D) encouraging countries that are not members of existing 
     multilateral nonproliferation and export control regimes to 
     strengthen their national export control regimes, improve 
     enforcement, and adhere to

[[Page 17562]]

     the provisions and guidelines of existing regimes, and not to 
     undermine existing multilateral nonproliferation and export 
     control regimes by transferring or exporting controlled items 
     in a manner inconsistent with the guidelines of the regimes.
       (4) Participation in new regimes.--It is the policy of the 
     United States to participate in additional multilateral 
     export control regimes if such participation would serve the 
     national security interests of the United States.
       (5) Enhanced cooperation with regime nonmembers.--Congress 
     urges the President to seek agreement among the members of 
     existing multilateral nonproliferation and export control 
     regimes to--
       (A) seek the membership of nonmember countries, as 
     practicable, if doing so will strengthen existing regimes;
       (B) seek cooperation with governments outside the regime to 
     abide by the provisions and guidelines established by those 
     regimes; and
       (C) establish mechanisms in the regime to coordinate 
     planning and implementation of nonproliferation and export 
     control measures related to such cooperation.
       (6) Enforcement of international norms and practices.--
     Congress encourages the President to seek agreement among the 
     members of existing multilateral nonproliferation and export 
     control regimes to--
       (A) pursue measures and sanctions on a multilateral basis 
     with respect to countries or persons found in violation of 
     existing multilateral nonproliferation and export control 
     regimes, and international norms; and
       (B) prevent undercutting by foreign firms when the United 
     States takes unilateral action against countries or entities 
     found to be in violation of existing international agreements 
     or United States law whether or not other members of the 
     regimes choose to take action against those violators.

     SEC. __11. ARMS EXPORT CONTROL ACT.

       Nothing in this Act shall be construed to alter or modify 
     the Arms Export Control Act.
                                 ______
                                 

                         KYL AMENDMENT NO. 4133

  (Ordered to lie on the table.)
  Mr. KYL submitted an amendment intended to be proposed by him to the 
bill, H.R. 4444, Supra; as follows:

       On page 5, line 12, after ``China'', insert ``and Taiwan as 
     separate customs territories''.

  Mr. KYL. Mr. President, in recent days, there have been some 
disturbing moves by China to block Taiwan's entry into the World Trade 
Organization (WTO), despite China's previous assurances to the United 
States that it would not do so. As recently as Thursday, September 7, 
Chinese Foreign Ministry spokesman Sun Yuxi said that China wanted its 
claim to sovereignty over Taiwan written into the terms of the WTO's 
rules, stating ``The Chinese side has a consistent and clear position: 
Taiwan can join WTO as a separate customs territory of China.''
  This statement by China's Foreign Ministry spokesman comes on the 
heels of earlier efforts by China to block Taiwan's WTO entry. As the 
Wall Street Journal reported in July:

       ``. . . as WTO staff members draw up the so-called protocol 
     agreements--the reams of paper that define exactly what 
     concessions China will make in order to gain entry into the 
     organization--China is insisting that its claim over Taiwan 
     be recognized in the legal language . . . chief Chinese 
     negotiator Long Yongtu said . . . such a stand ``is a matter 
     of principle for us'' . . . That would upset a consensus 
     within the WTO that Taiwan should be allowed to enter the 
     club as a separate economic area--that is, not an independent 
     country, but also not as an explicit part of China. Some WTO 
     members have argued that Taiwan has long since fulfilled its 
     requirements to join the club and its application has been 
     held up only to satisfy China's demand that Taiwan shouldn't 
     win entry to the organization first.

  In order to help ensure that China lives up to its promises to the 
United States, and that Taiwan's entry to the WTO is not unnecessarily 
impeded, today I am filing an amendment to H.R. 4444, the bill to 
provide permanent normal trade status to China. The current text of 
H.R. 4444 states that the extension of permanent normal trade relations 
to China ``shall become effective no earlier than the effective date of 
the accession of the People's Republic of China to the World Trade 
Organization.'' My amendment would add one additional condition, 
stating that permanent normal trade relations with China ``shall become 
effective no earlier than the effective date of the accession of the 
People's Republic of China and Taiwan as separate customs territories 
to the World Trade Organization.''
  My amendment reinforces the message the Clinton administration has 
sent to China on previous occasions, and it is my hope that this 
amendment will remove any ambiguity about America's resolve to support 
Taiwan's WTO admission. Earlier this week, I received a letter from 
President Clinton that responded to a letter I sent him in July along 
with 30 other Senators, that sought assurances that his administration 
remained committed to Taiwan's entry to the WTO. In the letter the 
President stated that, ``My administration remains firmly committed to 
the goal of WTO General Council approval of the accession packages for 
China and Taiwan at the same session.'' The President's letter went on 
to say that ``China has made clear on many occasions, and at high 
levels, that it will not oppose Taiwan's accession to the WTO. 
Nevertheless, China did submit proposed language to their working party 
stating that Taiwan is a separate customs territory of China. We have 
advised the Chinese that such language is inappropriate and irrelevant 
to the work of the working party and that we will not accept it.''
  As the President acknowledged in the letter, despite previous 
assurances by China and the administration that Taiwan will be admitted 
to the WTO without opposition, under the surface there is a problem. As 
it always does, China is using yet another diplomatic opportunity to 
assert its view that Taiwan is nothing more than a province of China.
  It is important for the Congress and the administration to work 
together to support Taiwan's entry into the World Trade Organization 
(WTO). First because of the economic benefits that its entry would 
bring. Secondly, because of the need to meet our commitments to our 
close and longstanding ally. And third, due to our desire to defend and 
promote democratic governments, with free markets, that respect the 
rule of law and the human rights of their people.
  Based on its importance to the world economy, Taiwan should be 
admitted to the WTO. It has the 19th largest economy and is the 14th 
largest trading nation in the world. Taiwan's economy is also closely 
linked to the U.S. It is America's 8th largest trading partner and 
purchases more American goods than many of our other major trading 
partners, like mainland China, Australia, and Italy. U.S. trade with 
Taiwan should continue to grow. Over two years ago, we signed a 
bilateral WTO agreement with Taiwan that included significant reduction 
in tariffs and other barriers for exports of a variety of U.S. goods 
and services, including agriculture goods, automotive products, and 
pharmaceuticals. The admission of Taiwan to the WTO ensures that market 
barriers to U.S. products will remain low and American companies will 
have a means to solve disputes over intellectual property and other 
matters.
  Taiwan has been negotiating to become a member of the WTO since 1990 
and has met the substantive conditions for membership. According to the 
Congressional Research Service, it has completed agreements with each 
of the 26 WTO members that requested bilateral negotiations, and has 
held 10 meetings with the WTO Working Party in Geneva, resolving all 
substantive issues surrounding its admission.
  China has insisted that Taiwan can get into the WTO only after it 
does, and has lobbied other countries to support this position. In the 
past, Clinton administration officials have assured us that Taiwan's 
accession would closely follow China's. In February, U.S. Trade 
Representative Charlene Barshefsky testified to the House of 
Representatives that ``. . . the only issue with respect to Taiwan's 
accession . . . pertains to timing . . . there is a tacit understanding 
. . . among WTO members in general--but also, frankly, between China 
and Taiwan--that China would enter first and China would not block in 
any way Taiwan's accession thereafter, and that might be immediately 
thereafter or within days or hours or seconds or weeks. . . .'' Later 
that same month, in response to a statement by Senator Roth that ``. . 
. there's a great deal of concern that Taiwan might be blocked [from 
entering the WTO] once China secures such membership,'' Ambassador

[[Page 17563]]

Barshefsky testified that ``. . . the United States would do everything 
in our power to ensure that that does not happen in any respect because 
Taiwan's entry is also critical.''
  The WTO plays an important role in promoting free and fair trade. 
Under the WTO, member countries agree on a set of rules and principles 
for trade, which in turn creates a stable and predictable trade 
environment. Secondly, the WTO provides a mechanism to enforce these 
rules, including a procedure for countries to resolve trade disputes. 
And finally, the WTO provides a forum for negotiations to reduce trade 
barriers worldwide.
  Since the founding of its predecessor GATT in 1984, membership in the 
organization has grown from 23 countries to 136 today. The general view 
among economist is that a more predictable trade environment, and a 
reduction of trade barriers, has contributed to the unprecedented 
economic prosperity that most countries currently enjoy. Statistics 
support this view: In 1998, world exports were 18 times larger than in 
1950, and world GDP was 6 times greater in 1998 than 1950, according to 
the Congressional Research Service.
  As I mentioned earlier, the United States should support Taiwan's 
admission to the WTO, not merely for economic reasons, but also to 
honor our commitments to a close, long-standing ally, and to 
demonstrate our intention to support democracies that respect the rule 
of law.
  When our Nation switched diplomatic recognition to mainland China, we 
also enacted the 1979 Taiwan Relations Act to state our continued 
commitment to the security of Taiwan. This law states, ``. . . the 
United States decision to establish diplomatic relations with the 
People's Republic of China rests upon the expectation that the future 
of Taiwan will be determined by peaceful means.'' It goes on to say the 
U.S. would ``. . . consider any effort to determine the future of 
Taiwan by other than peaceful means, including by boycotts or 
embargoes, a threat to the peace and security of the Western Pacific 
area and of grave concern to the United States.'' And finally, it says 
the U.S. will sell ``. . . defense articles and defense services in 
such quantity as many be necessary to enable Taiwan to maintain a 
sufficient self-defense capability.''
  China's leaders have steadfastly refused to renounce the use of force 
in retaking Taiwan, and have issued thinly veiled threats to use 
nuclear weapons should the U.S. intervene. For example, in March, the 
main newspaper of China's military said, ``China is neither Iraq nor 
Yugoslavia, but a very special country . . . it is a country that has 
certain abilities of launching a strategic counterattack and the 
capacity of launching a long-distance strike. Probably it is not a wise 
move to be at war with a country like China, a point which U.S. 
policymakers know fairly well.'' Another article in a Chinese military-
owned newspaper went further, saying, ``The United States will not 
sacrifice 200 million Americans for 20 million Taiwanese. They will 
finally acknowledge the difficulty and withdraw.''
  In outlining what became known as the ``Truman Doctrine,'' President 
Harry Truman said:

       At the present moment in world history nearly every nation 
     must choose between alternative ways of life. The choice is 
     too often not a free one. One way of life is based upon the 
     will of the majority, and is distinguished by free 
     institutions, representative government, free elections, 
     guarantees of individual liberty, freedom of speech and 
     religion, and freedom from political oppression. The second 
     way of life is based upon the will of a minority forcibly 
     imposed upon the majority. It relies upon terror and 
     oppression, a controlled press and radio, fixed elections, 
     and the suppression of personal freedoms. I believe that is 
     must be the policy of the United States to support free 
     peoples who are resisting attempted subjugation by armed 
     minorities or outside pressures. I believe that we must 
     assist free peoples to work out their own destinies in their 
     own way.

  Harry Truman spoke these words in 1947, at a time when it was very 
difficult to stand up to communism on the march from the Soviet Union. 
The challenge we face today in dealing with China and Taiwan should not 
be as great as the courageous struggle for the cold war. The United 
States cannot support China's entry into the WTO without equally 
supporting Taiwan's entry into the WTO. This is but one of many signals 
we should be sending to the communist regime in Beijing, about 
America's determination to meet our commitments and our resolve to 
support Taiwan.

                          ____________________