[Congressional Record (Bound Edition), Volume 151 (2005), Part 11]
[House]
[Pages 15770-15774]
[From the U.S. Government Publishing Office, www.gpo.gov]




                     EAST ASIA SECURITY ACT OF 2005

  Mr. HYDE. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 3100) to authorize measures to deter arms transfers by foreign 
countries to the People's Republic of China.
  The Clerk read as follows:

                               H.R. 3100

       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 ``East Asia Security Act of 
     2005''.

     SEC. 2. STATEMENTS OF POLICY.

       Congress--
       (1) previously expressed its strong concerns in House 
     Resolution 57 of February 2, 2005, and Senate Resolution 91 
     of March 17, 2005, with the transfer of armaments and related 
     technology to the People's Republic of China by member states 
     of the European Union, which increased eightfold from 2001 to 
     2003, and with plans to terminate in the near future the arms 
     embargo they imposed in 1989 following the Tiananmen Square 
     massacre;
       (2) welcomes deferral of a decision by the European Council 
     to terminate its arms embargo following adoption of those 
     Resolutions, the President's visit to Europe, and growing 
     concern among countries in the regions and the general public 
     on both sides of the Atlantic;
       (3) welcomes the decision by the European Parliament on 
     April 14, 2005, by a vote of 421 to 85, to oppose the lifting 
     of the European Union's arms embargo on the People's Republic 
     of China, and resolutions issued by a number of elected 
     parliamentary bodies in Europe also opposing the lifting of 
     the arms embargo;
       (4) also welcomes the onset of a strategic dialogue between 
     the European Commission and the Government of the United 
     States on the security situation in East Asia, through which 
     it is hoped a greater understanding will emerge of the 
     consequences of European assistance to the military buildup 
     of the People's Republic of China for peace and stability in 
     that region, to the security interests of the United States 
     and its friends and allies in the region, and, in particular, 
     to the safety of United States Armed Forces whose presence in 
     the region has been a decisive factor in ensuring peace and 
     prosperity since the end of World War II;
       (5) hopes that a more intensive dialogue with Europe on 
     this matter will clarify for United States friends and allies 
     in Europe how their ``non-lethal'' arms transfers improve the 
     force projection of the People's Republic of China, are far 
     from benign, and enhance the prospects for the threat or use 
     of force in resolving the status of Taiwan, a troubling 
     prospect made more ominous by recent adoption of a new law by 
     the Chinese National People's Congress expressly authorizing 
     the use of force;
       (6) also hopes that this dialogue will result in an 
     important new consensus between the United States and its 
     European partners on the need for coordinated policies which 
     encourage the development of democracy in the People's 
     Republic of China and which discourage, not assist, China's 
     unjustified military buildup and pursuit of weapons that 
     threaten its neighbors;
       (7) however, deeply regrets that none of the European 
     friends and allies of the United States who have been 
     transferring arms to the People's Republic of China has 
     announced a cessation or even a temporary halt to those 
     transfers while this new dialogue with the United States 
     ensues, and notes with concern that such European friends and 
     allies have provided little, if any, transparency to the 
     United States Government into the full range and capabilities 
     of all of the armaments and related technology that they have 
     transferred to date and continue even now to do so;
       (8) is further troubled by public reports describing well 
     known European companies as suppliers to weapons programs of 
     the People's Republic of China, who are also participants in 
     numerous sensitive United States Government weapons programs, 
     and the increased risks of diversion of United States weapons 
     technology to China inherent in such an undesirable 
     situation; and
       (9) in view of the gravity of European arms sales to the 
     People's Republic of China, which have not abated, believes 
     it is necessary to make provision for greater scrutiny and 
     oversight with respect to those areas of international 
     armament cooperation that present increased levels of risk to 
     the security interests of the United States and to authorize 
     appropriate measures which the President may drawn on in 
     deterring foreign support for China's military buildup in 
     order to safeguard the national security interests of the 
     United States and peace and security in East Asia.

     SEC. 3. REPORT ON FOREIGN MILITARY EXPORTS TO CHINA.

       (a) Report.--The President shall, at the times specified in 
     subsection (b), transmit to the appropriate congressional 
     committees a report that identifies every person of a member 
     country of the European Union, and any other foreign person 
     the President may consider appropriate, with respect to whom 
     there is credible information indicating that the person, on 
     or after January 1, 2005, exported to--
       (1) the People's Republic of China any item on the 
     Wassenaar Munitions List of July 12, 1996, and subsequent 
     revisions; or
       (2) the military, intelligence, or other security forces of 
     the People's Republic of China--
       (A) any item on the Wassenaar List of Dual Use Goods and 
     Technologies of July 12, 1996, and subsequent revisions; or
       (B) any other dual use item if the item is intended, 
     entirely or in part, for use with an item described in 
     paragraph (1).
       (b) Timing of Report.--The report required under subsection 
     (a) shall be transmitted not later than 180 days after the 
     date of the enactment of this Act and not later than the end 
     of each 12-month period thereafter.
       (c) Exceptions.--A foreign person is not required to be 
     identified in a report required under subsection (a) if the 
     person--
       (1) was identified in a previous report transmitted under 
     subsection (a) on account of a particular export, except to 
     the extent that the export may have continued, involved 
     additional transfers, or was larger, more significant, or 
     different in nature than described in the previous report;
       (2) was engaged solely in an export on behalf of, or in 
     concert with, the Government of the United States; or
       (3) was engaged in an export which, as determined by the 
     President, would be exempt from the restrictions of section 
     902(a) of the Foreign Relations Authorization Act, Fiscal 
     Years 1990 and 1991 (Public Law 101-246; 22 U.S.C. 2151 
     note), if the export were subject to the jurisdiction of the 
     United States, by reason of the issuance of a report under 
     section 902(b) of such Act.
       (d) Form.--If the President considers it appropriate, 
     reports transmitted under subsection (a), or appropriate 
     parts thereof, may be transmitted in classified form.

     SEC. 4. REPORT ON CHINA ARMS TRANSFER POLICIES OF COUNTRIES 
                   PARTICIPATING IN UNITED STATES DEFENSE 
                   COOPERATIVE PROJECTS; CERTAIN LICENSE 
                   REQUIREMENTS.

       (a) Statement of Policy.--Congress is concerned with the 
     significant additional risk of unlawful use and diversion of 
     sensitive United States weapons system research, design, and 
     development arising from cooperative research and development 
     projects with foreign governments and foreign persons who may 
     also transfer arms and related technology to the People's 
     Republic of China.
       (b) Report.--The President shall, at the times specified in 
     subsection (c), transmit to the appropriate congressional 
     committees a report that--
       (1) identifies every foreign government with respect to 
     which the United States is carrying out a cooperative project 
     described in subsection (d) and whose policies or practices, 
     on or after the date of the enactment of this Act, permit the 
     export of any item described in paragraph (1), or 
     subparagraph (A) or (B) of paragraph (2), of section 3(a); 
     and
       (2) describes the cooperative projects and policies or 
     practices referred to in paragraph (1) of every foreign 
     government identified under such paragraph.
       (c) Timing of Report.--The report required under subsection 
     (b)--
       (1) shall be transmitted not later than 180 days after the 
     date of the enactment of this Act and not later than the end 
     of each 12-month period thereafter; and
       (2) may be included in the report required under section 3, 
     as the President determines appropriate.
       (d) Cooperative Projects.--The cooperative projects 
     referred to in subsection (b) are

[[Page 15771]]

     projects carried out under section 27 of the Arms Export 
     Control Act (22 U.S.C. 2767) or section 2350a, 2358, or a 
     memorandum of understanding under section 2531 of title 10, 
     United States Code.
       (e) License Requirements.--
       (1) Requirement.--Notwithstanding any other provision of 
     law, a license under section 38 of the Arms Export Control 
     Act (22 U.S.C. 2778) shall be required for the export of 
     defense articles or defense services by any person who is not 
     an officer or employee of the Government of the United States 
     in furtherance of a cooperative project described in 
     subsection (d) with a country identified in a report 
     transmitted under subsection (b).
       (2) Congressional notification.--The issuance of a license 
     pursuant to paragraph (1) shall be subject to the same 
     requirements as are applicable to the export of items 
     described in section 36(c) of the Arms Export Control Act (22 
     U.S.C. 2776(c)) (without regard to the dollar amount 
     requirements relating to contracts contained in such 
     section), including the transmittal of information and the 
     application of congressional review procedures in accordance 
     with such section.

     SEC. 5. CERTAIN FOREIGN OWNERSHIP AND CONTROL OF DEFENSE 
                   ARTICLES IN THE UNITED STATES.

       (a) Statement of Policy.--Congress determines that special 
     care should be taken by the United States with respect to 
     foreign persons who sell arms and related technology to the 
     People's Republic of China, while simultaneously seeking 
     ownership of United States defense articles or defense 
     services, including the results of United States Government 
     funded defense research and development, through the 
     acquisition or control of United States defense firms, 
     directly or through their subsidiaries and affiliates based 
     in the United States.
       (b) License Requirements.--
       (1) Requirement.--The President shall require a license 
     pursuant to regulations issued under section 38(g)(6) of the 
     Arms Export Control Act (22 U.S.C. 2778(g)(6)) for the 
     transfer of ownership or control of United States defense 
     articles or defense services arising from the acquisition or 
     control of a person required to be registered under section 
     38(b)(1) of such Act (22 U.S.C. 2778(b)(1)), or any 
     subsidiary, division, affiliate or other entity thereof, 
     whenever the person gaining acquisition or control is--
       (A) a foreign national of the People's Republic of China or 
     a foreign person otherwise subject to the jurisdiction, 
     ownership, or control of the People's Republic of China;
       (B) a foreign person identified in a report transmitted 
     under section 3 or having its principal place of business in 
     a country described in a report transmitted under section 4; 
     or
       (C) a United States person owned or controlled by a foreign 
     person, including a subsidiary or affiliate of a foreign 
     person described in subparagraph (B).
       (2) Additional requirement.--A license under section 
     38(g)(6) of the Arms Export Control Act for a person 
     described in paragraph (1)(A) shall not be issued until 30 
     days after the date on which the President transmits a report 
     that contains a determination of the President that--
       (A) the Government of the People's Republic of China meets 
     the requirements of section 902(b)(1) of the Foreign 
     Relations Authorization Act, Fiscal Years 1990 and 1991 
     (Public Law 101-246; 22 U.S.C. 2151 note); or
       (B) it is in the national interest of the United States to 
     issue the license.
       (c) Congressional Notification.--The issuance of a license 
     pursuant to subsection (b) shall be subject to the same 
     requirements as are applicable to the export of items 
     described in section 36(c) of the Arms Export Control Act (22 
     U.S.C. 2776(c)) (without regard to the dollar amount 
     requirements relating to contracts contained in such 
     section), including the transmittal of information and the 
     application of congressional review procedures in accordance 
     with such section.
       (d) Exception.--The issuance of a license pursuant to 
     subsection (b) shall not be required in the case of an 
     amendment to a munitions license or a change in registration 
     arising from a sale or transfer of ownership or control of 
     United States defense articles or defense services to a 
     person described in subparagraph (A), (B), or (C) of 
     subsection (b)(1) that was approved prior to the date of 
     enactment of this Act unless the President determines that it 
     is in the national security interests of the United States to 
     require the issuance of a new license pursuant to subsection 
     (b).

     SEC. 6. CHINESE MILITARY END USE OF DUAL USE EXPORTS.

       (a) Statement of Policy.--Congress welcomes the 
     understanding reached at the Wassenaar Arrangement's December 
     2003 plenary meeting to require governmental authorization 
     for the transfer of non-listed dual use items intended for 
     military end use in a destination subject to any relevant 
     regional arms embargo or to any United Nations Security 
     Council resolution.
       (b) License Requirement.--
       (1) Requirement.--The President shall require a license 
     under the Export Administration Regulations for the export of 
     any item described in paragraph (1), or subparagraph (A) or 
     (B) of paragraph (2), of section 3(a) that is not subject to 
     a license under section 38 of the Arms Export Control Act (22 
     U.S.C. 2778) if the item is intended for military end use by 
     the People's Republic of China.
       (2) Sense of congress.--It is the sense of Congress that 
     the President should not approve a license pursuant to 
     paragraph (1) unless the President determines that approval 
     is important to counterterrorism, nonproliferation, or other 
     national security interests of the United States.
       (c) Congressional Notification.--The issuance of a license 
     pursuant to subsection (b) shall be subject to the same 
     requirements as are applicable to the export of items 
     described in section 36(c) of the Arms Export Control Act (22 
     U.S.C. 2776(c)) (without regard to the dollar amount 
     requirements relating to contracts contained in such 
     section), including the transmittal of information and the 
     application of congressional review procedures in accordance 
     with such section.
       (d) Definition.--In this section, the term ``military end 
     use'' means, with respect to an item, the item is or may be 
     intended, entirely or in part, for use in conjunction with an 
     item described on the Wassenaar Munitions List of July 12, 
     1996, and subsequent revisions.

     SEC. 7. APPLICATION OF MEASURES TO CERTAIN FOREIGN PERSONS.

       (a) Application of Measures.--Subject to sections 8 and 9, 
     the President may apply with respect to any foreign person 
     (including a foreign government) identified in a report 
     transmitted under section 3, and shall apply with respect to 
     any foreign person (including a foreign government) 
     identified in more than one report transmitted under section 
     3, any or all of the following measures:
       (1) Research and development.--Denial of participation in 
     existing and new cooperative research and development 
     programs and projects under section 27 of the Arms Export 
     Control Act (22 U.S.C. 2767) or sections 2350a, 2358, or a 
     memorandum of understanding under 2531 of title 10, United 
     States Code.
       (2) Control of united states defense firms.--Prohibition of 
     ownership and control of any business organization required 
     to be registered with the United States Government as a 
     manufacturer or exporter of defense articles or defense 
     services under section 38(b)(1) of the Arms Export Control 
     Act (22 U.S.C. 2778(b)(1)).
       (3) Security assistance.--Prohibition on participation in 
     any foreign military sales under chapter 2 of the Arms Export 
     Control Act (22 U.S.C. 2761 et seq.) or any design and 
     construction sales under chapter 2A of such Act (22 U.S.C. 
     2769).
       (4) Munitions list approvals.--Prohibition on licenses and 
     other forms of approval under section 38 of the Arms Export 
     Control Act (22 U.S.C. 2778) for the export of any item on 
     the United States Munitions List as in effect on August 8, 
     1995.
       (5) Dual use approvals.--Prohibition on licenses and other 
     forms of approval for dual use goods or technology, the 
     export of which is controlled under the Export Administration 
     Act of 1979 (as continued in effect under the International 
     Emergency Economic Powers Act) or the Export Administration 
     Regulations.
       (b) Application of Additional Measures.--Subject to 
     sections 8 and 9, and notwithstanding any other provision of 
     law, the President may, with respect to any foreign person 
     (including a foreign government) identified in a report 
     transmitted under section 3, and shall, with respect to any 
     foreign person (including a foreign government) identified in 
     more than one report transmitted under section 3--
       (1) suspend the use of any license exemption and expedited 
     license procedure established in the International Traffic in 
     Arms Regulations or other provisions of law for the export or 
     temporary import of defense articles and defense services;
       (2) require the execution of a non-transfer and end use 
     certificate for the export of any defense articles and 
     defense services; and
       (3) require, as a condition of issuance of any license for 
     the export of defense articles and defense services, United 
     States access to and verification of the items after the 
     export of the items or alternative measures to ensure 
     compliance with restrictions on the transfer of the items to 
     third-parties.
       (c) Effective Date of Measures.--Measures applied pursuant 
     to subsection (a) or (b) shall be effective with respect to a 
     foreign person (including a foreign government) no later 
     than--
       (1) 30 days after the report identifying the foreign person 
     is transmitted, if the report is transmitted on or before the 
     date required by section 3(b); or
       (2) on the date that the report identifying the foreign 
     person is transmitted, if the report is transmitted more than 
     30 days after the date required by section 3(b).
       (d) Duration of Measures.--Measures applied pursuant to 
     subsection (a) shall be for a period of 2 years or longer, as 
     the President determines appropriate. Measures applied 
     pursuant to subsection (b) shall be, at a minimum, consistent 
     with the duration of the license and the normal requirements 
     for record keeping established in the International Traffic 
     in Arms Regulations or longer, as the President determines 
     appropriate.

[[Page 15772]]

       (e) Publication in Federal Register.--The application of 
     measures to a foreign person pursuant to subsection (a) or 
     (b) shall be announced by notice published in the Federal 
     Register, except if the President determines that doing so 
     would be inconsistent with the protection of classified 
     information.

     SEC. 8. PROCEDURES IF DISCRETIONARY MEASURES ARE NOT APPLIED.

       (a) Requirement to Notify Congress.--If the President does 
     not exercise the authority of subsection (a) or (b) of 
     section 7 to apply any or all of the discretionary measures 
     described in such subsection with respect to a foreign person 
     identified in a report transmitted under section 3, the 
     President shall so notify the appropriate congressional 
     committees not later than the effective date under section 
     7(c) for measures with respect to that person.
       (b) Written Justification.--Any notification transmitted by 
     the President under subsection (a) shall include a written 
     justification describing in detail the facts and 
     circumstances relating specifically to the foreign person 
     identified in a report transmitted under section 3 that 
     support the President's decision not to exercise the 
     authority of subsection (a) or (b) of section 7 with respect 
     to that person.
       (c) Form.--If the President considers it appropriate, the 
     notification of the President under subsection (a), and the 
     written justification under subsection (b), or appropriate 
     parts thereof, may be transmitted in classified form.

     SEC. 9. DETERMINATIONS EXEMPTING FOREIGN PERSONS FROM 
                   MANDATORY MEASURES.

       (a) Waiver.--Any mandatory measure described in section 7 
     shall not apply with respect to a foreign person if the 
     President transmits to the appropriate congressional 
     committees a report that contains a determination of the 
     President that--
       (1) on the basis of information provided by that person or 
     the foreign government having primary jurisdiction over the 
     person, the person did not, on or after January 1, 2005, 
     knowingly export to the People's Republic of China the item 
     the apparent export of which caused the person to be 
     identified in a report transmitted under section 3; or
       (2) the foreign government having primary jurisdiction over 
     the person has entered into a written agreement with the 
     United States which--
       (A) is binding under international law;
       (B) prohibits further exports of any item described in 
     paragraph (1), or subparagraph (A) or (B) of paragraph (2), 
     of section 3(a) by any person subject to its jurisdiction;
       (C) is supported by the foreign government's adoption of 
     policies and procedures providing for credible implementation 
     of the requirements in subparagraphs (A) and (B);
       (D) does not constrain the President's authority to impose 
     measures under this act in the event of a future export of 
     concern by the same or other persons subject to the 
     jurisdiction of the foreign government party to the 
     agreement; and
       (E) is submitted to the appropriate congressional 
     committees 30 days prior to its entry into force.
       (b) Additional Waiver.--Any mandatory measure described in 
     section 7 shall not apply to a foreign person if the 
     President determines that it is important to the 
     counterterrorism, nonproliferation, or other national 
     security interests of the United States and transmits to the 
     appropriate congressional committees a report in writing that 
     contains such determination.
       (c) Sense of Congress.--It is the sense of Congress that 
     the President should--
       (1) strengthen international coordination and execution of 
     arms export policy through the development of bilateral and 
     multilateral agreements under subsection (a)(2), particularly 
     with member states of the North Atlantic Treaty Organization 
     (NATO), Japan, Australia and New Zealand, and exercise the 
     waivers provided under this section in all appropriate 
     instances that further this objective; and
       (2) whenever the President determines that the measures 
     described in section 7 should be applied, that the measures 
     be applied comprehensively with respect to the affected 
     foreign person's affiliates and subsidiaries, wherever 
     located, in order to deter to the fullest extent possible a 
     recurrence or continuation of the export giving rise to the 
     President's determination.
       (d) Form.--If the President considers it appropriate, the 
     determination and report of the President under subsection 
     (a), or appropriate parts thereof, may be transmitted in 
     classified form.

     SEC. 10. DEFINITIONS.

       In this Act:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means--
       (A) the Committee on International Relations and the 
     Committee on Armed Services of the House of Representatives; 
     and
       (B) the Committee on Foreign Relations and the Committee on 
     Armed Services of the Senate.
       (2) Defense articles and defense services.--The term 
     ``defense articles and defense services'' has the meaning 
     given the term in section 47(7) of the Arms Export Control 
     Act (22 U.S.C. 2794 note).
       (3) Dual use.--The term ``dual use'' means, with respect to 
     goods or technology, those goods or technology that are 
     specifically designed or developed for civil purposes but 
     which also may be used or deployed in a military or 
     proliferation mode. Such term does not include purely 
     commercial items.
       (4) Export.--The term ``export'' has the meaning given that 
     term in section 120.17 of the International Traffic in Arms 
     Regulations, and includes re-exports, transfers, and 
     retransfers by any means.
       (5) Export administration regulations.--The term ``Export 
     Administration Regulations'' means those regulations 
     contained in sections 730 through 774 of title 15, Code of 
     Federal Regulations (or successor regulations).
       (6) Foreign government.--The term ``foreign government'' 
     has the meaning given the term in section 38(g)(9)(B) of the 
     Arms Export Control Act (22 U.S.C. 2778(g)(9)(B)).
       (7) Foreign person.--The term ``foreign person'' has the 
     meaning given the term in section 38(g)(9)(C) of the Arms 
     Export Control Act (22 U.S.C. 2778(g)(9)(C)).
       (8) Good.--The term ``good'' has the meaning given the term 
     in section 16(3) of the Export Administration Act of 1979 (50 
     U.S.C. App. 2415(3)).
       (9) International traffic in arms regulations.--The term 
     ``International Traffic in Arms Regulations'' means those 
     regulations contained in sections 120 through 130 of title 
     22, Code of Federal Regulations (or successor regulations).
       (10) Item.--The term ``item'' means any good or technology, 
     defense article or defense service subject to the export 
     jurisdiction of the United States under law or regulation.
       (11) License.--The term ``license'' means an official 
     written document of the United States Government issued 
     pursuant to the Export Administration Regulations or the 
     International Traffic in Arms Regulations, as the case may 
     be, authorizing a specific export.
       (12) Other forms of approval.--The term ``other forms of 
     approval'' includes any authorization, rule or exemption 
     contained in any statute or regulation that permits an export 
     without a license.
       (13) Ownership or control.--The term ``ownership or 
     control'' has the meaning given the term in section 122.2(c) 
     of the International Traffic in Arms Regulations.
       (14) Person.--The term ``person'' has the meaning given the 
     term in section 38(g)(9)(E) of the Arms Export Control Act 
     (22 U.S.C. 2778(g)(9)(E)).
       (15) Technology.--The term ``technology'' has the meaning 
     given the term in section 16(4) of the Export Administration 
     Act of 1979 (50 U.S.C. App. 2415(4)).
       (16) United states munitions list.--The term ``United 
     States Munitions List'' means the list referred to in section 
     38(a)(1) of the Arms Export Control Act (22 U.S.C. 
     2778(a)(1)).

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Illinois (Mr. Hyde) and the gentleman from California (Mr. Lantos) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Illinois (Mr. Hyde).


                             General Leave

  Mr. HYDE. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
and include extraneous material on the bill under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Illinois?
  There was no objection.
  Mr. HYDE. Mr. Speaker, I yield myself such time as I may consume.
  I rise in support of H.R. 3100, a bill which I introduced for the 
purpose of authorizing measures to deter arms transfers by foreign 
countries to the People's Republic of China.

                              {time}  1200

  This bill has 14 cosponsors from both sides of the aisle, including 
the gentleman from California (Mr. Lantos), the ranking Democratic 
member of the Committee on International Relations; and the gentleman 
from California (Mr. Hunter), the chairman of the Committee on Armed 
Services. The Committee on International Relations has marked up the 
bill and ordered it reported unanimously. The background and need for 
this legislation can be briefly summarized.
  When the House passed Resolution 57 overwhelmingly 411 to 3 on 
February 2, 2005, it did so in the context of a rising chorus from 
European leaders that it was time to terminate the European Union's 
arms embargo on China. In response to this development, Resolution 57 
called on the European Union to take two steps: one, to maintain its 
arms embargo on the People's Republic

[[Page 15773]]

of China; and, two, to eliminate weaknesses in the embargo and in the 
national policies of the EU member states. Indeed, those weaknesses are 
loopholes of one form or another that had permitted European weapons 
technology to flow to China at an increasingly higher level, even while 
the embargo remained in place.
  Now we have word that the EU has decided for the time being not to 
terminate the China arms embargo. This, of course, is a welcome 
development, but it only responds to one of the two steps we asked to 
be taken. Unfortunately, while maintaining the embargo in the formal 
sense, the EU and its member states have remained silent on whether 
they will actually stop the flow of arms-related technology from Europe 
to China. The supply of European arms technology to China has risen 
steadily in recent years, both in quantity and quality or 
sophistication.
  With respect to quantity, European arms sales to China increased 
eight- fold, to $540 million in the 3-year period between 2001 and 
2003. Qualitatively, European transfers have included a number of 
systems which increased the range, reliability, and lethality of 
China's attack aircraft and other offensive weapons systems.
  The implications of these transfers are uniformly negative for the 
security of U.S. Armed Forces in East Asia, for the defense of our 
friends and allies in the region, and for regional stability more 
broadly. In this respect, I note the public testimony by the Director 
of the CIA, Mr. Goss, on February 16, 2005, before the Senate Select 
Committee on Intelligence. At that time he pointed out that Beijing's 
military modernization and military buildup is tilting the balance of 
power in the Taiwan Strait and that improved Chinese capabilities 
threaten U.S. forces in the region.
  H.R. 3100 would address these continuing serious concerns in several 
ways. First, the bill would ensure Congress has the information it 
needs from the executive branch concerning foreign support for Chinese 
weapons acquisitions. Under H.R. 3100, the President would henceforth 
submit an annual report to Congress on European companies that are 
aiding China's military buildup and on European governments whose 
policies condone these sales.
  Second, for those European companies and governments that continue 
dangerous arms relationships with China, the bill would expand U.S. 
export license requirements and increase congressional oversight in 
certain circumstances. This will ensure that access to sensible U.S. 
weapons technology is monitored carefully in the case of foreign 
companies that are also suppliers to Chinese military programs. As the 
chairman of the Committee on Armed Services noted during our April 14 
hearing, the technology control plans which govern access to our 
weapons technology by foreign contractors who are also aiding the 
Chinese could be very challenging, if not ``mission impossible.''
  Third, the President would be given new authority to help deter 
future European arms-related sales, should enhanced procedural 
safeguards not be enough. H.R. 3100 provides a menu of measures the 
President could draw upon in limiting access of culpable persons to 
U.S. weapons technology.
  Significantly, H.R. 3100 would not have a retroactive character. It 
will not reach back. This is because the bill is not intended to be 
punitive; its primary purpose is deterrence. In this context, the 
optimal report Congress could receive is one in which no European 
company or government is named. However, if EU member states do not 
make it possible for this to happen, the President would be in a 
position to take other steps in consultation with the Congress to 
safeguard our security interests.
  Mr. Speaker, I hope our colleagues will join me in supporting H.R. 
3100.
  Mr. Speaker, I reserve the balance of my time.
  Mr. LANTOS. Mr. Speaker, I yield myself such time as I may consume. I 
rise in strong support of H.R. 3100, the East Asia Security Act of 
2005.
  Mr. Speaker, tens of thousands of American troops are currently 
deployed in Asia, and the American Armed Forces one day could be sent 
to the Taiwan Strait to help defend the island nation from invasion by 
Mainland China. It is also possible that American troops might be 
mobilized in other circumstances in East Asia.
  We certainly do not seek a military confrontation with China. Our 
country is actively working to reduce the possibility of any 
hostilities with that country. At the same time, I am certain that my 
colleagues remember our tense confrontation with China over the 
incident involving an American EP-3 aircraft that was forced to land at 
Hainan Island in southern China after it was harassed and damaged by a 
Chinese fighter aircraft.
  In addition to our own troops' safety, Mr. Speaker, our country has 
other vital interests throughout the Asia Pacific region, including the 
national and economic security interests of our friends and allies.
  Earlier this year, we faced a serious problem when the European Union 
announced its ill-advised intention to lift the embargo against the 
sale of sophisticated weapons to China. For the American people, this 
raised the threat that American soldiers could face the latest in high-
tech weaponry manufactured in Europe as well as Chinese weapons systems 
that could be greatly improved by European technology. In February of 
this year, this House adopted House Resolution 57, introduced by my 
good friend, the distinguished chairman of the Committee on 
International Relations, the gentleman from Illinois (Mr. Hyde), and 
myself. That resolution called upon the Europeans to maintain their 
embargo on arms sales to China; and as my colleagues recall, Mr. 
Speaker, the Hyde-Lantos resolution was adopted in the House by a vote 
of 411 to 3.
  Our European allies received that clear message, and their ill-
advised effort to lift the embargo was quietly dropped. I welcomed that 
action by the European Union.
  The embargo on arms sales was initially initiated because of China's 
horrendous human rights record. Nothing about that record has changed 
in the 16 years since the Tiananmen Square Massacre. The only 
difference is China's dramatically increasing military strength and the 
consequent threat to the entire region.
  Even with the embargo still in place, Mr. Speaker, several of the 
leading nations of Europe have dramatically increased their sales to 
China of military-related goods and high technology. In 2003, the last 
year for which data is available, these sales amounted to over a half a 
billion dollars from some European Union countries, including France, 
Germany, Italy, and the Czech Republic. Other non-European Union 
countries have also sold significant military equipment to China which 
represents a threat to regional stability.
  For all of these reasons, it is important that we make clear our 
opposition to the sale of sophisticated military equipment to China, 
and that we establish penalties by law against those companies and 
countries that engage in sales that are damaging to our own national 
security interests and the security of East Asia.
  Our legislation, the Hyde-Lantos legislation, H.R. 3100, covers any 
nation whose policies permit the export of dangerous military materiel 
and technology to China. At the President's discretion, he can 
publicize the activities of any country that is transferring sensitive 
goods and technology to the People's Republic of China, and he has the 
authority to impose sanctions if he chooses.
  For any country that is involved in sensitive defense research and 
development projects with the United States, and whose practices have 
the potential to allow the transfer of U.S. technology to the People's 
Republic of China, the Hyde-Lantos bill would require that all U.S. 
exports of goods and technology to these countries be carefully 
reviewed and licensed prior to export.
  Our bill is extremely important to persuade other countries that 
there will be severe consequences if they fail to respect the security 
interests of their most important ally, the United States of America.

[[Page 15774]]

  I urge all of my colleagues to support this bill.
  Mr. HYDE. Mr. Speaker, I enclose two letters relating to the 
consideration of H.R. 3100 The East Asia Security Act.''

         House of Representatives, Committee on International 
           Relations,
                                    Washington, DC, July 12, 2005.
     Hon. Bill Thomas,
     Chairman, House Committee on Ways and Means, Longworth House 
         Office Building, Washington, DC.
       Dear Mr. Chairman: I am writing to you concerning the bill 
     H.R. 3100 ``The East Asia Security Act of 2005''. The 
     Committee has marked up the bill and ordered it reported by a 
     unanimous vote.
       Under Rule X of the House Rules the Committee on Ways and 
     Means has jurisdiction over matters concerning imports. One 
     provision under Section 7 of H.R. 3100 may suspend the 
     President's ability to use a license exemption or expedited 
     procedure for licensing of the temporary importation of 
     defense articles, and thus falls within the jurisdiction of 
     the Committee on Ways and Means.
       In the interest of permitting this Committee to proceed 
     expeditiously to the floor consideration of this bill, I 
     request your Committee waive its right to sequential referral 
     on this matter. I understand that such a waiver only applies 
     to this language in this bill, and not to the underlying 
     subject matter. I will urge the Speaker to name Members of 
     your Committee to any conference committee which is named to 
     consider this bill.
       I appreciate your willingness to allow us to proceed. I 
     will insert this exchange of letters into the Congressional 
     Record during the debate of this bill.
           Sincerely,
                                                    Henry J. Hyde,
                                                         Chairman.
                                  ____
                                  
                                         House of Representatives,


                                  Committee on Ways and Means,

                                    Washington, DC, July 13, 2005.
     Hon. Henry J. Hyde,
     Chairman, Committee on International Relations, Rayburn House 
         Office Building, Washington, DC.
       Dear Chairman Hyde: I am writing concerning H.R. 3100, the 
     ``East Asia Security Act of 2005,'' which is scheduled for 
     floor consideration on Wednesday, July 13, 2005.
       As you know, the Committee on Ways and Means has 
     jurisdiction over matters concerning imports. One provision 
     under Section 7 of H.R. 3100 may suspend the President's 
     ability to use a license exemption or expedited procedure for 
     licensing of the temporary importation of defense articles, 
     and thus falls within the jurisdiction of the Committee on 
     Ways and Means. However, in order to expedite this 
     legislation for floor consideration, the Committee will forgo 
     action on this bill. This is being done with the 
     understanding that it does not in any way prejudice the 
     Committee with respect to the appointment of conferees or its 
     jurisdictional prerogatives on this or similar legislation.
       I would appreciate your response to this letter, confirming 
     this understanding with respect to H.R. 3100, and would ask 
     that a copy of our exchange of letters on this matter be 
     included in the Congressional Record during floor 
     consideration.
           Best regards,
                                                      Bill Thomas,
                                                         Chairman.
  Mr. Speaker, I yield back the balance of my time.
  Mr. HYDE. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Simpson). The question is on the motion 
offered by the gentleman from Illinois (Mr. Hyde) that the House 
suspend the rules and pass the bill, H.R. 3100.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of 
those present have voted in the affirmative.
  Mr. HYDE. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

                          ____________________