[Congressional Record (Bound Edition), Volume 160 (2014), Part 4]
[House]
[Pages 5701-5708]
[From the U.S. Government Publishing Office, www.gpo.gov]




 TAIWAN RELATIONS ACT AFFIRMATION AND NAVAL VESSEL TRANSFER ACT OF 2014

  Mr. ROYCE. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 3470) to provide for the transfer of naval vessels to certain 
foreign countries, and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 3470

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

[[Page 5702]]



     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Taiwan 
     Relations Act Affirmation and Naval Vessel Transfer Act of 
     2014''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title and table of contents.

TITLE I--AFFIRMATION OF IMPORTANCE OF TAIWAN RELATIONS ACT AND TRANSFER 
                       OF NAVAL VESSELS TO TAIWAN

Sec. 101. Statement of policy relating to Taiwan Relations Act.
Sec. 102. Transfer of naval vessels to Taiwan.

TITLE II--TRANSFER OF NAVAL VESSELS TO CERTAIN OTHER FOREIGN RECIPIENTS

Sec. 201. Findings.
Sec. 202. Transfer of naval vessels to certain other foreign 
              recipients.

             TITLE III--ARMS EXPORT CONTROL ACT AMENDMENTS

Sec. 301. Increase in congressional notification thresholds.
Sec. 302. Licensing of certain commerce-controlled items.
Sec. 303. Amendments relating to removal of major defense equipment 
              from United States Munitions List.
Sec. 304. Amendment to definition of ``security assistance'' under the 
              Foreign Assistance Act of 1961.
Sec. 305. Amendments to definitions of ``defense article'' and 
              ``defense service'' under the Arms Export Control Act.
Sec. 306. Technical amendments.

  TITLE IV--APPLICATION OF CERTAIN PROVISIONS OF EXPORT ADMINISTRATION

Sec. 401. Application of certain provisions of Export Administration 
              Act of 1979.

TITLE I--AFFIRMATION OF IMPORTANCE OF TAIWAN RELATIONS ACT AND TRANSFER 
                       OF NAVAL VESSELS TO TAIWAN

     SEC. 101. STATEMENT OF POLICY RELATING TO TAIWAN RELATIONS 
                   ACT.

       (a) Findings.--Congress finds the following:
       (1) The Taiwan Relations Act has been instrumental in 
     maintaining peace, security, and stability in the Western 
     Pacific since its enactment in 1979, and it is in the 
     political, security, and economic interests of the United 
     States.
       (2) The Taiwan Relations Act affirmed that the United 
     States' decision to establish a diplomatic relationship with 
     the People's Republic of China was based on the expectation 
     that the future of Taiwan would be determined by peaceful 
     means.
       (3) The Taiwan Relations Act also states that ``it is the 
     policy of the United States to provide Taiwan with arms of a 
     defensive character and to maintain the capacity of the 
     United States to resist any resort to force or other forms of 
     coercion that would jeopardize the security, or the social or 
     economic system, of the people on Taiwan''.
       (4) The Taiwan Relations Act also states that ``it is the 
     policy of the United States to preserve and promote 
     extensive, close, and friendly commercial, cultural, and 
     other relations between the people of the United States and 
     the people on Taiwan, as well as the people on the China 
     mainland and all other peoples of the Western Pacific area''.
       (5) The relationship between the United States and Taiwan 
     has been strengthened with--
       (A) Taiwan's evolution into a free society and a full-
     fledged, multi-party democracy;
       (B) the development of Taiwan's robust market economy;
       (C) Taiwan's collaboration with the United States to combat 
     terrorism, as demonstrated in part by its participation in 
     the Container Security Initiative; and
       (D) the role Taiwan has played in addressing transnational 
     and global challenges, including its active engagement in 
     humanitarian relief measures, public health endeavors, 
     environmental protection initiatives, and financial market 
     stabilization efforts.
       (6) The United States is the third largest trading partner 
     and the largest investor in Taiwan, while Taiwan is the 
     twelfth largest trading partner of the United States and the 
     eighth largest United States agricultural market.
       (7) Taiwan's democracy has deepened with the second 
     peaceful transfer of power from one political party to 
     another after the presidential election in March 2008.
       (8) The United States and Taiwan are united in our shared 
     values in free elections, personal liberty, and free 
     enterprise.
       (b) Statement of Policy.--Congress--
       (1) reaffirms its unwavering commitment to the Taiwan 
     Relations Act as the cornerstone of relations between the 
     United States and Taiwan;
       (2) reaffirms its support for Taiwan's democratic 
     institutions;
       (3) reaffirms that peace in the Taiwan Strait should be 
     maintained to the benefit of the Asia-Pacific region;
       (4) supports the United States commitment to Taiwan's 
     security in accord with the Taiwan Relations Act, including 
     Taiwan's procurement of sophisticated weapons of a defensive 
     character, such as F-16 C/Ds aircraft and diesel electric 
     submarines;
       (5) reaffirms its commitment to deepen United States-Taiwan 
     trade and investment relations as well as support for 
     Taiwan's inclusion in bilateral and regional trade agreements 
     at the appropriate time and under the right conditions in 
     which outstanding issues affecting United States exports are 
     being addressed; and
       (6) supports the strong and deepening relationship between 
     the United States and Taiwan.

     SEC. 102. TRANSFER OF NAVAL VESSELS TO TAIWAN.

       (a) Transfer by Sale.--The President is authorized to 
     transfer the OLIVER HAZARD PERRY class guided missile 
     frigates USS TAYLOR (FFG-50), USS GARY (FFG-51), USS CARR 
     (FFG-52), and USS ELROD (FFG-55) to the Taipei Economic and 
     Cultural Representative Office of the United States (which is 
     the Taiwan instrumentality designated pursuant to section 
     10(a) of the Taiwan Relations Act (22 U.S.C. 3309(a))) on a 
     sale basis under section 21 of the Arms Export Control Act 
     (22 U.S.C. 2761).
       (b) Costs of Transfers.--Any expense incurred by the United 
     States in connection with a transfer authorized by this 
     section shall be charged to the recipient notwithstanding 
     section 516(e) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2321j(e)).
       (c) Repair and Refurbishment in United States Shipyards.--
     To the maximum extent practicable, the President shall 
     require, as a condition of the transfer of a vessel under 
     this section, that the recipient to which the vessel is 
     transferred have such repair or refurbishment of the vessel 
     as is needed, before the vessel joins the naval forces of 
     that recipient, performed at a shipyard located in the United 
     States, including a United States Navy shipyard.
       (d) Expiration of Authority.--The authority to transfer a 
     vessel under this section shall expire at the end of the 3-
     year period beginning on the date of the enactment of this 
     section.

TITLE II--TRANSFER OF NAVAL VESSELS TO CERTAIN OTHER FOREIGN RECIPIENTS

     SEC. 201. FINDINGS.

       (a) Relating to Mexico.--Congress finds the following:
       (1) The partnership between the United States and Mexico 
     helps the economic and national security of both countries, 
     including in the area of energy.
       (2) The United States and Mexico share a common goal of 
     reducing the flow of narcotics and the influence of 
     transnational gangs in the Hemisphere.
       (3) The partnership between the United States and Mexico 
     helps the economic competitiveness and national security of 
     both countries.
       (4) The economies of the United States and Mexico are 
     increasingly interdependent, with bilateral foreign direct 
     investment increasing more than six-fold over the past two 
     decades.
       (5) In 2012 alone, bilateral trade in goods and services 
     between the United States and Mexico exceeded 
     $500,000,000,000.
       (6) The transfer of naval vessels to Mexico authorized 
     under section 202 supports the modernization efforts of the 
     Mexican Navy.
       (7) Such naval vessels are suitable to support Mexico's 
     offshore maritime surveillance, counter trafficking, 
     interdiction, and oil platform security.
       (8) The transfer of such naval vessels will contribute to 
     United States interests in promoting increased maritime 
     awareness to support security and protection of the people of 
     the United States and the people of Mexico.
       (b) Relating to Thailand.--Congress finds the following:
       (1) Thailand was the first treaty ally of the United States 
     in the Asia-Pacific region and remains a steadfast friend of 
     the United States.
       (2) In December 2003, the United States designated Thailand 
     as a major non-NATO ally, which improved the security of both 
     countries, particularly by facilitating joint 
     counterterrorism efforts.
       (3) For more than 30 years, Thailand has been the host 
     country of Cobra Gold, the United States Pacific Command's 
     annual multinational military training exercise, which is 
     designed to ensure regional peace and promote regional 
     security cooperation.
       (4) The Royal Thai Navy has commanded Combined Task Force 
     151 (CTF 151) of the Combined Maritime Forces, a multi-
     national naval partnership consisting of 30 nations operating 
     in and around the Gulf of Aden and off the eastern coast of 
     Somalia.
       (5) With the assistance of the Royal Thai Navy's Counter 
     Piracy Task Group, CTF 151 is helping to expressly disrupt 
     and suppress piracy, protect all vessels in the region and 
     secure their free navigation.
       (6) The Royal Thai Navy is also participating in the 
     multilateral Malacca Straits patrols with other regional 
     partners to promote maritime safety and security.
       (7) The transfer of naval vessels to Thailand authorized 
     under section 202 will support enhanced interoperability 
     between the Royal Thai Navy and United States Navy forces.
       (8) The transfer of such naval vessels underscores the 
     United States commitment to

[[Page 5703]]

     United States-Thai relations and to peace and security in the 
     Asia-Pacific region.

     SEC. 202. TRANSFER OF NAVAL VESSELS TO CERTAIN OTHER FOREIGN 
                   RECIPIENTS.

       (a) Transfers by Grant.--The President is authorized to 
     transfer vessels to foreign countries on a grant basis under 
     section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2321j), as follows:
       (1) Mexico.--To the Government of Mexico, the OLIVER HAZARD 
     PERRY class guided missile frigates USS CURTS (FFG-38) and 
     USS MCCLUSKY (FFG-41).
       (2) Thailand.--To the Government of Thailand, the OLIVER 
     HAZARD PERRY class guided missile frigates USS RENTZ (FFG-46) 
     and USS VANDEGRIFT (FFG-48).
       (b) Alternative Transfer Authority.--Notwithstanding the 
     authority provided in subsection (a) to transfer specific 
     vessels to specific countries, the President is authorized, 
     subject to the same conditions that would apply for such 
     country under this section, to transfer any vessel named in 
     this section to any country named in this section such that 
     the total number of vessels transferred to such country does 
     not exceed the total number of vessels authorized for 
     transfer to such country by this section.
       (c) Grants Not Counted in Annual Total of Transferred 
     Excess Defense Articles.--The value of a vessel transferred 
     to another country on a grant basis pursuant to authority 
     provided by subsection (a) or (b) shall not be counted 
     against the aggregate value of excess defense articles 
     transferred in any fiscal year under section 516 of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2321j).
       (d) Costs of Transfers.--Any expense incurred by the United 
     States in connection with a transfer authorized by this 
     section shall be charged to the recipient notwithstanding 
     section 516(e) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2321j(e)).
       (e) Repair and Refurbishment in United States Shipyards.--
     To the maximum extent practicable, the President shall 
     require, as a condition of the transfer of a vessel under 
     this section, that the recipient to which the vessel is 
     transferred have such repair or refurbishment of the vessel 
     as is needed, before the vessel joins the naval forces of 
     that recipient, performed at a shipyard located in the United 
     States, including a United States Navy shipyard.
       (f) Expiration of Authority.--The authority to transfer a 
     vessel under this section shall expire at the end of the 3-
     year period beginning on the date of the enactment of this 
     Act.

             TITLE III--ARMS EXPORT CONTROL ACT AMENDMENTS

     SEC. 301. INCREASE IN CONGRESSIONAL NOTIFICATION THRESHOLDS.

       (a) Foreign Military Sales.--
       (1) In general.--Section 36(b) of the Arms Export Control 
     Act (22 U.S.C. 2776(b)) is amended--
       (A) in paragraph (1)--
       (i) in the matter preceding subparagraph (A)--

       (I) by striking ``$50,000,000'' and inserting 
     ``$100,000,000'';
       (II) by striking ``$200,000,000'' and inserting 
     ``$300,000,000''; and
       (III) by striking ``$14,000,000'' and inserting 
     ``$25,000,000''; and

       (ii) in the matter following subparagraph (P)--

       (I) by inserting ``of any defense articles or defense 
     services under this Act for $200,000,000 or more, any design 
     and construction services for $300,000,000 or more, or any 
     major defense equipment for $75,000,000 or more,'' after 
     ``The letter of offer shall not be issued, with respect to a 
     proposed sale''; and
       (II) by inserting ``of any defense articles or services 
     under this Act for $100,000,000 or more, any design and 
     construction services for $200,000,000 or more, or any major 
     defense equipment for $50,000,000 or more,'' after ``or with 
     respect to a proposed sale''; and

       (B) in paragraph (6)--
       (i) in subparagraph (A), by striking ``$25,000,000'' and 
     inserting ``$75,000,000''; and
       (ii) in subparagraph (B), by striking ``$100,000,000'' and 
     inserting ``$200,000,000''.
       (b) Commercial Sales.--Section 36(c) of the Arms Export 
     Control Act (22 U.S.C. 2776(c)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``$14,000,000'' and inserting 
     ``$25,000,000''; and
       (B) by striking ``$50,000,000'' and inserting 
     ``$100,000,000''; and
       (2) in paragraph (5)--
       (A) in subparagraph (A), by striking ``$25,000,000'' and 
     inserting ``$75,000,000''; and
       (B) in subparagraph (B), by striking ``$100,000,000'' and 
     inserting ``$200,000,000''.

     SEC. 302. LICENSING OF CERTAIN COMMERCE-CONTROLLED ITEMS.

       Section 38 of the Arms Export Control Act (22 U.S.C. 2778) 
     is amended by adding at the end the following new subsection:
       ``(k) Licensing of Certain Commerce-Controlled Items.--
       ``(1) In general.--A license or other approval from the 
     Department of State granted in accordance with this section 
     may also authorize the export of items subject to the Export 
     Administration Regulations if such items are to be used in or 
     with defense articles controlled on the United States 
     Munitions List.
       ``(2) Other requirements.--The following requirements shall 
     apply with respect to a license or other approval to 
     authorize the export of items subject to the Export 
     Administration Regulations under paragraph (1):
       ``(A) Separate approval from the Department of Commerce 
     shall not be required for such items if such items are 
     approved for export under a Department of State license or 
     other approval.
       ``(B) Such items subject to the Export Administration 
     Regulations that are exported pursuant to a Department of 
     State license or other approval would remain under the 
     jurisdiction of the Department of Commerce with respect to 
     any subsequent transactions.
       ``(C) The inclusion of the term `subject to the EAR' or any 
     similar term on a Department of State license or approval 
     shall not affect the jurisdiction with respect to such items.
       ``(3) Definition.--In this subsection, the term `Export 
     Administration Regulations' means--
       ``(A) the Export Administration Regulations as maintained 
     and amended under the authority of the International 
     Emergency Economic Powers Act (50 U.S.C. 1701 et seq.); or
       ``(B) any successor regulations.''.

     SEC. 303. AMENDMENTS RELATING TO REMOVAL OF MAJOR DEFENSE 
                   EQUIPMENT FROM UNITED STATES MUNITIONS LIST.

       (a) Requirements for Removal of Major Defense Equipment 
     From United States Munitions List.--Section 38(f) of the Arms 
     Export Control Act (22 U.S.C. 2778(f)) is amended by adding 
     at the end the following:
       ``(5)(A) Except as provided in subparagraph (B), the 
     President shall take such actions as may be necessary to 
     require that, at the time of export or reexport of any major 
     defense equipment listed on the 600 series of the Commerce 
     Control List contained in Supplement No. 1 to part 774 of 
     subtitle B of title 15, Code of Federal Regulations, the 
     major defense equipment will not be subsequently modified so 
     as to transform such major defense equipment into a defense 
     article.
       ``(B) The President may authorize the transformation of any 
     major defense equipment described in subparagraph (A) into a 
     defense article if the President--
       ``(i) determines that such transformation is appropriate 
     and in the national interests of the United States; and
       ``(ii) provides notice of such transformation to the 
     chairman of the Committee on Foreign Affairs of the House of 
     Representatives and the chairman of the Committee on Foreign 
     Relations of the Senate consistent with the notification 
     requirements of section 36(b)(5)(A) of this Act.
       ``(C) In this paragraph, the term `defense article' means 
     an item designated by the President pursuant to subsection 
     (a)(1).''.
       (b) Notification and Reporting Requirements for Major 
     Defense Equipment Removed From United States Munitions 
     List.--Section 38(f) of the Arms Export Control Act (22 
     U.S.C. 2778(f)), as amended by this section, is further 
     amended by adding at the end the following:
       ``(6) The President shall ensure that any major defense 
     equipment that is listed on the 600 series of the Commerce 
     Control List contained in Supplement No. 1 to part 774 of 
     subtitle B of title 15, Code of Federal Regulations, shall 
     continue to be subject to the notification and reporting 
     requirements of the following provisions of law:
       ``(A) Section 516(f) of the Foreign Assistance Act of 1961 
     (22 U.S.C. 2321j(f)).
       ``(B) Section 655 of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2415).
       ``(C) Section 3(d)(3)(A) of this Act.
       ``(D) Section 25 of this Act.
       ``(E) Section 36(b), (c), and (d) of this Act.''.

     SEC. 304. AMENDMENT TO DEFINITION OF ``SECURITY ASSISTANCE'' 
                   UNDER THE FOREIGN ASSISTANCE ACT OF 1961.

       Section 502B(d) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2304(d)) is amended--
       (1) in paragraph (1), by striking ``and'' at the end; and
       (2) in paragraph (2)(C) to read as follows:
       ``(C) any license in effect with respect to the export to 
     or for the armed forces, police, intelligence, or other 
     internal security forces of a foreign country of--
       ``(i) defense articles or defense services under section 38 
     of the Armed Export Control Act; or
       ``(ii) items listed under the 600 series of the Commerce 
     Control List contained in Supplement No. 1 to part 774 of 
     subtitle B of title 15, Code of Federal Regulations;''.

     SEC. 305. AMENDMENTS TO DEFINITIONS OF ``DEFENSE ARTICLE'' 
                   AND ``DEFENSE SERVICE'' UNDER THE ARMS EXPORT 
                   CONTROL ACT.

       Section 47 of the Arms Export Control Act (22 U.S.C. 2794) 
     is amended--
       (1) in the matter preceding subparagraph (A) of paragraph 
     (3), by striking ``includes'' and inserting ``means, with 
     respect to a sale or transfer by the United States under the 
     authority of this Act or any other foreign assistance or 
     sales program of the United States''; and
       (2) in paragraph (4), by striking ``includes'' and 
     inserting ``means, with respect to a sale or transfer by the 
     United States under the

[[Page 5704]]

     authority of this Act or any other foreign assistance or 
     sales program of the United States,''.

     SEC. 306. TECHNICAL AMENDMENTS.

       (a) In General.--The Arms Export Control Act (22 U.S.C. 
     2751 et seq.) is amended--
       (1) in sections 3(a), 3(d)(1), 3(d)(3)(A), 3(e), 5(c), 6, 
     21(g), 36(a), 36(b)(1), 36(b)(5)(C), 36(c)(1), 36(f), 
     38(f)(1), 40(f)(1), 40(g)(2)(B), 101(b), and 102(a)(2), by 
     striking ``the Speaker of the House of Representatives and'' 
     each place it appears and inserting ``the Speaker of the 
     House of Representatives, the Committee on Foreign Affairs of 
     the House of Representatives, and'';
       (2) in section 21(i)(1) by inserting after ``the Speaker of 
     the House of Representatives'' the following ``, the 
     Committees on Foreign Affairs and Armed Services of the House 
     of Representatives,'';
       (3) in sections 25(e), 38(f)(2), 38(j)(3), and 38(j)(4)(B), 
     by striking ``International Relations'' each place it appears 
     and inserting ``Foreign Affairs'';
       (4) in sections 27(f) and 62(a), by inserting after ``the 
     Speaker of the House of Representatives,'' each place it 
     appears the following: ``the Committee on Foreign Affairs of 
     the House of Representatives,''; and
       (5) in section 73(e)(2), by striking ``the Committee on 
     National Security and the Committee on International 
     Relations of the House of Representatives'' and inserting 
     ``the Committee on Armed Services and the Committee on 
     Foreign Affairs of the House of Representatives''.
       (b) Other Technical Amendments.--
       (1) Arms export control act.--The Arms Export Control Act 
     (22 U.S.C. 2751 et seq.), as amended by subsection (a), is 
     further amended--
       (A) in section 38--
       (i) in subsection (b)(1), by redesignating the second 
     subparagraph (B) (as added by section 1255(b) of the Foreign 
     Relations Authorization Act, Fiscal Years 1988 and 1989 
     (Public Law 100-204; 101 Stat. 1431)) as subparagraph (C);
       (ii) in subsection (g)(1)(A)--

       (I) in clause (xi), by striking ``; or'' and inserting ``, 
     or''; and
       (II) in clause (xii)--

       (aa) by striking ``section'' and inserting ``sections''; 
     and
       (bb) by striking ``(18 U.S.C. 175b)'' and inserting ``(18 
     U.S.C. 175c)''; and
       (iii) in subsection (j)(2), in the matter preceding 
     subparagraph (A), by inserting ``in'' after ``to''; and
       (B) in section 47(2), in the matter preceding subparagraph 
     (A), by striking ``sec. 21(a),,'' and inserting ``section 
     21(a),''.
       (2) Foreign assistance act of 1961.--Section 502B of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2304) is amended--
       (A) in subsection (b), by striking ``Wherever applicable, a 
     description'' and inserting ``Wherever applicable, such 
     report shall include a description''; and
       (B) in subsection (d)(2)(B), by striking ``credits'' and 
     inserting ``credits)''.

  TITLE IV--APPLICATION OF CERTAIN PROVISIONS OF EXPORT ADMINISTRATION

     SEC. 401. APPLICATION OF CERTAIN PROVISIONS OF EXPORT 
                   ADMINISTRATION ACT OF 1979.

       (a) Protection of Information.--Section 12(c) of the Export 
     Administration Act of 1979 (50 U.S.C. App. 2411(c)) has been 
     in effect from August 20, 2001, and continues in effect on 
     and after the date of the enactment of this Act, pursuant to 
     the International Emergency Economic Powers Act (50 U.S.C. 
     1701 et seq.) and notwithstanding section 20 of the Export 
     Administration Act of 1979 (50 U.S.C. App. 2419). Section 
     12(c)(1) of the Export Administration Act of 1979 is a 
     statute covered by section 552(b)(3) of title 5, United 
     States Code.
       (b) Termination Date.--Subsection (a) terminates at the end 
     of the 4-year period beginning on the date of the enactment 
     of this Act.

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


                             General Leave

  Mr. ROYCE. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days to revise and extend their remarks and to put 
any extraneous material on this measure into the Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from California?
  There was no objection.
  Mr. ROYCE. I yield myself such time as I my consume.
  Mr. Speaker, I rise in strong support of H.R. 3470. This legislation 
that I authored reaffirms the United States' steadfast support for 
Taiwan and provides the legal authority to sell naval vessels to 
Taiwan.
  I very much appreciate the bipartisan support that we have received 
from Mr. Engel and other members of the committee across the aisle. 
This legislation passed unanimously out of our committee, and the bill 
makes several changes also to improve U.S. security assistance to 
friends and allies.
  On April 10, 1979, the Taiwan Relations Act was enacted to govern 
America's relationship with the Republic of China-Taiwan. For 35 years, 
the act has helped maintain peace and security across the Taiwan Strait 
and the Asia-Pacific region.
  During this time, Taiwan has undergone a monumental transformation 
from grinding poverty and from dictatorship to, today, a vibrant 
multiparty democracy. Taiwan's economy has evolved, too, to where it is 
today, our 10th top trading partner. This week, we recognize this 35-
year transformation. Few other pieces of foreign policy legislation 
have been as consequential as the Taiwan Relations Act.
  America's support for Taiwan has allowed this island nation to 
realize its full potential. It is now more important than ever that we 
reaffirm our strong commitment to Taiwan and to the Taiwan Relations 
Act. And as chairman, I led two bipartisan delegations to Taipei, to 
Kaohsiung, and to Tainan to examine Taiwan's economy and to look at its 
defense capabilities. Today's legislation is the product of the 
committee's bipartisan effort to prioritize the U.S.-Taiwan 
relationship. By incorporating two pieces of legislation, both which 
passed the committee unanimously, the House of Representatives is now 
in a position to fulfill both the spirit and the letter of the Taiwan 
Relations Act.
  This legislation allows the President to transfer for sale four 
Perry-class guided missile frigates to Taiwan, which are greatly needed 
to augment Taiwan's defense capabilities. I have seen firsthand the 
World War II-era submarines and the 50-year-old fighter jets that form 
the core of Taiwan's military. Congress has made it clear to the 
administration that it wants more defense sales to Taiwan. These four 
ships would bolster Taiwan's defense to ensure that peace in the Taiwan 
Strait continues to benefit the entire region.
  In addition to supporting Taiwan, this legislation also authorizes 
the transfer of excess decommissioned naval vessels to Thailand and 
Mexico. These transfers help support the priorities of the U.S. Navy 
while strengthening the capability of allies and other close partners 
to meet our shared maritime security objectives.
  The bill also makes long overdue improvements to the timeliness of 
U.S. arms sales to friends and allies while maintaining appropriate 
congressional oversight. It also makes technical amendments to update 
certain notification and reporting requirements under the Arms Export 
Control Act. Finally, the bill also clarifies that certain business 
confidentiality protections of the Export Administration Act continue 
to protect information related to export licensing.
  Mr. Speaker, I reserve the balance of my time.

                                    Congress of the United States,


                                     House of Representatives,

                                    Washington, DC, April 4, 2014.
     Hon. Edward R. Royce,
     Chairman, Committee on Foreign Affairs, Rayburn House Office 
         Building, Washington, DC.
       Dear Chairman Royce: I am writing concerning H.R. 3470, 
     ``Taiwan Relations Act Affirmation and Naval Vessel Transfer 
     Act of 2014,'' Title I of which was favorably reported out of 
     your Committee on March 25, 2014 as H. Res. 494.
       As you know, H. Res. 494, which has been incorporated into 
     Section 101 of H.R. 3470, has been referred to the Committee 
     on Ways and Means. I appreciate that, in response to the 
     concerns raised by the Committee on Ways and Means concerning 
     aspects of Title I within our Committee's jurisdiction, you 
     have agreed to modify H.R. 3470 prior to its consideration in 
     the House. As a result, in order to expedite floor 
     consideration of the bill, the Committee on Ways and Means 
     will forgo action on H.R. 3470. Further, the Committee will 
     not oppose the bill's consideration on the suspension 
     calendar, based on our understanding that you will work with 
     us as the legislative process moves forward to ensure that 
     the Committee's concerns continue to be addressed. This is 
     also 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.

[[Page 5705]]

       I would appreciate your response to this letter, confirming 
     this understanding with respect to H.R. 3470, and would ask 
     that a copy of our exchange of letters on this matter be 
     included in the Congressional Record during Floor 
     consideration.
           Sincerely,
                                                        Dave Camp,
     Chairman.
                                  ____

         One Hundred Thirteenth Congress, House of 
           Representatives,
                                    Washington, DC, April 4, 2014.
     Hon. Dave Camp,
     Chairman, Committee on Ways and Means, Longworth House Office 
         Building, Washington, DC.
       Dear Chairman Camp: Thank you for agreeing to be discharged 
     from further consideration of H. Res. 494, ``Affirming the 
     importance of the Taiwan Relations Act,'' and forgoing a 
     request for a sequential referral of the suspension text for 
     H.R. 3470, ``Naval Vessel Transfer and Arms Export Control 
     Amendments Act,'' in which the text of H. Res. 494 has been 
     inserted as a new section 101. The suspension text contains 
     agreed revisions, made at your request, to content that is 
     within the Rule X jurisdiction of the Committee on Ways and 
     Means.
       I agree that your forgoing further action on these measures 
     does not in any way diminish or alter the jurisdiction of the 
     Committee on the Ways and Means, or prejudice its 
     jurisdictional prerogatives on these measures or similar 
     legislation in the future.
       I will seek to place our letters into the Congressional 
     Record during floor consideration of H.R. 3470. I appreciate 
     your cooperation regarding this legislation and look forward 
     to continuing to work with the Committee on Ways and Means as 
     this measure moves through the legislative process.
           Sincerely,
                                                  Edward R. Royce,
                                                         Chairman.

  Mr. CONNOLLY. Mr. Speaker, I yield myself such time as I may consume.
  I thank my colleague, Mr. Royce, the distinguished chairman of our 
committee, once again for his bipartisan collegiality in the workings 
of our committee, especially on this important piece of legislation.
  I want to also rise in strong support of the Taiwan Relations Act 
Affirmation and Naval Vessel Transfer Act.
  I am proud to serve, Mr. Speaker, as the cochair of the Congressional 
Taiwan Caucus, which has worked to ensure the Taiwan Relations Act 
remains the linchpin in U.S.-Taiwan relations. I am also proud of the 
fact, I would say to my friend, the chairman of our committee, that, 
since 1988, I have actually been to Taiwan 23 times and have seen 
extraordinary change over those three decades.
  Since the signing of the Taiwan Relations Act in 1979, the U.S. and 
Taiwan have forged a closer partnership to improve cultural and 
economic relations between our nations. Our partnership has been 
instrumental in maintaining peace and security across the Taiwan Strait 
and throughout East Asia.
  While it is important to mark this historic anniversary, we also 
should take this opportunity to affirm our--that is to say the 
American--commitment. As a reflection of that, today's bill authorizes 
the President to transfer up to four surplus U.S. naval vessels to 
Taiwan. Taiwan has been a valued partner in combating global terrorism 
and delivering humanitarian relief when needed.
  China's recent declaration of an Air Defense Identification Zone and 
subsequent provocation toward other ships in the region has raised 
concerns about the possibility of escalation and provocation. That 
makes the security posture of friends like Taiwan even more precarious 
and more important and underscores the need for us to continue this 
defense partnership.
  The bill also, as the chairman indicated, authorizes the transfer of 
surplus naval vessels, two each to Mexico and Thailand, both critical 
defense partners of this Nation. These transfers will enhance the 
ability of those countries to collaborate with the U.S. Navy on joint 
or support operations. The bill also provides an overdue modernization 
of the congressional review process for the licensing of U.S. defense 
exports. Under the new criteria, congressional review will focus on 
major defense exports.
  The bill also will help advance the President's Export Control Reform 
initiative, which has long been a priority for the high-tech community 
which I am proud to represent in northern Virginia. I have been working 
with the House Foreign Affairs Committee for years to reform Federal 
export controls, which have stifled innovation in the American 
commercial defense industry and put U.S. exports at a disadvantage.
  Today's bill updates the process for congressional review of exports 
to reflect regulatory changes now being implemented by the Departments 
of State, Commerce, and Defense.
  As we celebrate the 35th anniversary of the adoption of the Taiwan 
Relations Act, I look forward to working with other friends of Taiwan 
to reaffirm America's unwavering commitment to this partnership, 
including trade and investment activities that will benefit both of our 
nations moving forward.
  Over the past 60 years, the United States-Taiwan relationship has 
undergone dramatic changes, but Taiwan's development into a robust, 
lively democracy underpins the strong U.S.-Taiwan friendship we enjoy 
today. I urge my colleagues on both sides of the aisle to join the 
chairman and me in supporting this important legislation, and I reserve 
the balance of my time.
  Mr. ROYCE. Mr. Speaker, I yield 3 minutes to the gentleman from North 
Carolina (Mr. Holding), a member of the Committee on Foreign Affairs.
  Mr. HOLDING. Mr. Speaker, let me first thank Chairman Royce for his 
steadfast leadership on the Foreign Affairs Committee on this 
legislation that we have before us today.

                              {time}  1700

  Mr. Speaker, H.R. 3470 strengthens the bilateral relationship between 
the United States and the Republic of China on Taiwan in two very 
important ways. First, it reaffirms Congress' commitment to the Taiwan 
Relations Act that for 35 years has served as the foundation of our 
relationship with the Republic of China on Taiwan. Secondly, Mr. 
Speaker, it authorizes the transfer of additional Perry-class guided 
missile frigates to Taiwan. And I should point out that I have seen 
firsthand in Taiwan the threat that the People's Republic of China 
constantly presents to Taiwan. They are there, right across a very 
short distance body of water, ready to strike at any time, so 
reaffirming our military commitment to Taiwan is critical.
  As we have seen the Chinese Government continue to escalate tensions 
in the region, Mr. Speaker, making certain that we enhance this 
security cooperation is important. As Chairman Royce pointed out, 
Taiwan is a superior trading partner with the United States. They are 
in the top 10 trading partners, and I point out that the trade with 
Taiwan represents about 500,000 jobs here in the United States.
  I would like to thank the chairman for his work to further the U.S.-
Taiwan relationship, and certainly look forward to working with him to 
determine what else we can and should be doing to support an unwavering 
ally in an increasingly important part of the world.
  My view of successful foreign policy is that your friends trust you 
and your enemies fear you, and this legislation today is a good step in 
the direction of our enemies fearing us and our friends trusting us.
  Mr. CONNOLLY. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  Mr. ROYCE. Mr. Speaker, I yield myself such time as I may consume.
  In closing, Mr. Speaker, I urge all of my colleagues to support this 
bipartisan legislation. Just as important as arms sales to Taiwan, the 
U.S. must support efforts to maintain and expand Taiwan's diplomatic 
presence. I am pleased to report to the House that legislation signed 
into law last year, another bipartisan product of this committee, 
helped Taiwan participate in the International Civil Aviation 
Organization for the first time since 1976.
  Taiwan's participation in regional trade agreements could greatly 
benefit American consumers and exporters as well.
  Mr. Speaker, Congress should be proud of the role that the Taiwan 
Relations Act has had in helping Taiwan become what it is today. Taiwan 
is a beacon of hope and democracy in a part of the world that still 
yearns for the

[[Page 5706]]

basic freedoms that Americans and Taiwanese enjoy on a daily basis. As 
we commemorate the 35th anniversary of the Taiwan Relations Act, let us 
speak with one voice and offer our strong support of Taiwan.
  Mr. Speaker, I yield back the balance of my time.
  Mrs. BLACKBURN. Mr. Speaker, I rise today in support of the passage 
of this reaffirmation of the Taiwan Relations Act and to the 
longstanding relationship between the United States and Taiwan. The 
Taiwan Relations Act, TRA, helped codify our pledge to the people of 
Taiwan and serves as a reminder that the continued support and 
strengthening of U.S.-Taiwan relations aids our mutual interests and 
shared values.
  Over the last few decades, Taiwan has emerged as a global leader in 
innovative technology and the heart of Asia's IT and Knowledge Economy 
sectors. Through the implementation of sound free-market policies and 
promotion of democratic ideals, we have seen a small agrarian economy 
transform itself into a growing global leader in the technology sector. 
Taiwan is now the world's second largest producer of ICT goods, and 
companies like Acer and HTC are now household names.
  Our mutually beneficial cooperation and exchange with Taiwan has 
helped dozens of American companies meet their ever-growing demand for 
equipment and expertise. The partnerships between American and 
Taiwanese innovators and job creators ensured a virtuous cycle of 
economic development in Taiwan and lower costs for American consumers.
  The U.S. should welcome Taiwanese participation in efforts to advance 
regional economic integration, such as the Trans Pacific Partnership. 
Taiwan is one of the region's most dynamic economies and its entry into 
the TPP will substantially expand the market encompassed by the 
agreement. Additionally, Taiwan's recent experience transitioning from 
a developing, domestically focused economy to a globally integrated 
economy will be invaluable as TPP partners make difficult choices and 
reforms to comply with higher standards set by TPP.
  As a longstanding friend of Taiwan, I am proud to voice my support 
for this resolution today. Few could have foreseen the political and 
economic progress that Taiwan has undergone since 1979. Our commitment 
to broadening and deepening our commercial and investment linkages with 
Taiwan will ensure that the spirit of the TRA endures and contributes 
to mutual prosperity on both sides of the Pacific.
  Mr. DIAZ-BALART. Mr. Speaker, this morning, I had the honor of taking 
part in a video conference with President of Taiwan, Mr. Ma Ying-jeou, 
at the Center for Strategic and International Studies. President Ma 
offered his insights on the U.S.-Taiwan bilateral relationship, 
especially timely given the 35th anniversary of the Taiwan Relations 
Act. President Ma's speech follows below:


                             Opening Remarks

       I would first like to extend my appreciation to the Center 
     for Strategic and International Studies for organizing this 
     videoconference for the third time. I believe this is the 
     second time Dr. Hamre has hosted this event, and I want to 
     thank him wholeheartedly. On the eve of the 35th anniversary 
     of the enactment of the Taiwan Relations Act (TRA), a 
     landmark piece of legislation that has laid the cornerstone 
     of the robust relationship between the Republic of China and 
     the United States, I am especially pleased to have this 
     opportunity to discuss the unique partnership between our two 
     countries with such a distinguished audience.


                  A Strong and Long-standing Friendship

       The friendship between the Republic of China and the U.S. 
     dates back over one century. It all began with a desire for 
     mutual understanding. The Boxer Indemnity Scholarship Program 
     was established by the U.S. in 1909 with an endowment of 
     $10.8 million U.S. dollars. The scholarship allowed Chinese 
     students to study in the U.S., and in 1911 helped establish 
     the forerunner of the prestigious National Tsing Hua 
     University, which has educated generations of young talent in 
     mainland China and Taiwan, including three Nobel laureates. 
     My hat is off to my American friends for having the foresight 
     to initiate such a beneficial scholarship program. The idea 
     behind it was the American vision to provide educational 
     opportunities for a vast but poor and backward Asian country 
     surrounded by insatiable imperialist powers.
       During the first half-century of our partnership, the 
     United States played a vital role in ensuring the Republic of 
     China's survival and development. In August 1941, for 
     instance, four months before the Pearl Harbor attack, the 
     U.S. dispatched the Flying Tigers to help in China's 
     difficult war against Japan. They shot down more than 200 
     Japanese military aircraft during the first seven months 
     after their arrival in China.
       In January 1943, the U.S. abrogated the 100-year old 
     unequal treaty system, with its extraterritoriality and 
     consular jurisdiction, and signed the Sino-American New Equal 
     Treaty with us in Washington, a signal that the U.S. sought a 
     truly equitable partnership with the Republic of China.
       On December 1st, 1943, the United States, United Kingdom, 
     and Republic of China issued the historic Cairo Declaration, 
     in which they demanded that Japan restore all territories 
     stolen from the Chinese, such as Manchuria, Taiwan, and the 
     Pescadores, to the Republic of China. This position was 
     reconfirmed in the Potsdam Proclamation on July 26th, 1945 
     and realized 38 days later with the signing of the Japanese 
     Instrument of Surrender on September 2nd. We truly appreciate 
     America's vital military and diplomatic role during this 
     period in helping the Republic of China recover sovereignty 
     over Taiwan.
       From 1950 to 1965, the U.S. provided Taiwan with $1.5 
     billion U.S. dollars in economic aid. Our two countries 
     signed a Mutual Defense Treaty in 1954 under which the U.S. 
     guaranteed our security. This provided a peaceful external 
     environment that enabled Taiwan to create an economic 
     miracle. Since then, the U.S. has stood by Taiwan through 
     thick and thin.


              35th Anniversary of the Taiwan Relations Act

       Relations between the ROC and U.S. changed drastically in 
     1978, a year that I look back upon with profound regret. In 
     December that year, President Jimmy Carter decided to switch 
     diplomatic recognition from Taipei to Beijing. To remedy the 
     situation, the Carter administration submitted a draft 
     version of the TRA to the Congress. But because of the 
     inadequacies of the draft, Congress made many crucial 
     improvements. On April 10th, President Carter signed the bill 
     into law, and made it retroactively effective from January 
     1st, 1979. The TRA, according to an American scholar at the 
     time, re-recognized Taiwan after it had been de-recognized by 
     the Carter administration.
       I was glad to learn that just two days ago, the U.S. House 
     of Representatives unanimously passed a bill reaffirming the 
     unwavering commitment of the U.S. to the TRA. The TRA 
     provides the legal framework for many agreements signed 
     between Taiwan and U.S., including a potential bilateral 
     investment agreement. With solid bipartisan support in the 
     U.S. Congress, our two countries have maintained strong 
     political, security, economic, and cultural ties that have 
     helped ensure and enhance peace and stability in East Asia. 
     Another U.S. commitment was the Reagan administration's Six 
     Assurances to Taiwan in July 1982, in which the U.S. 
     reiterated its continued commitment to Taiwan's security.
       When I took office in May 2008, I made it my top priority 
     to improve Taiwan's relationship with the U.S. by restoring 
     high-level mutual trust, which was nearly nonexistent at the 
     time. Today, ROC-U.S. relations are the strongest they've 
     been in 35 years or more. With U.S. support, Taiwan has been 
     able to improve cross-strait relations and confidently engage 
     Beijing from a position of strength.
       Continued American backing, under the mandate of the TRA, 
     for Taiwan's meaningful participation in international 
     organizations is another present-day example of U.S. support 
     for our foreign policy goals. In May 2009, the ROC health 
     minister attended the World Health Assembly in Geneva after 
     an absence of 38 years. In September last year, the Director-
     General of our Civil Aeronautics Administration was invited 
     as a guest of the President of the Council of the 
     International Civil Aviation Organization (ICAO) to attend 
     ICAO's 38th Assembly in Montreal, Canada, after an absence of 
     42 years. These were major steps forward in our efforts to 
     achieve more international participation.


           The ROC: A Peacemaker and Humanitarian Aid Provider

       Using what I call the policy of ``viable diplomacy,'' we 
     have expanded Taiwan's international space, and strengthened 
     relations with our allies and neighbors. Taiwan contributes 
     to regional peace, prosperity, and stability through timely 
     and concrete actions.
       As many of you know, Taiwan, mainland China, and Japan all 
     claim sovereignty over a group of small islets in the East 
     China Sea known as the Diaoyutai Islands. These islands are 
     uninhabited, but are located near rich fishing grounds, 
     undersea hydrocarbon deposits, and some of the world's 
     busiest shipping lanes.
       In recent years, the danger of confrontation over the 
     Diaoyutai Islands has grown tremendously. That is why I 
     proposed the East China Sea Peace Initiative in August 2012. 
     I wanted to demonstrate that a different path and a more 
     hopeful outcome are possible. This initiative elevates 
     peaceful negotiation over confrontation. It de-emphasizes the 
     territorial nature of the dispute and focuses on resource 
     sharing and cooperation.
       On April 10th last year, exactly a year ago tomorrow, we 
     signed the Taiwan-Japan Fisheries Agreement. There had been 
     16 rounds of fruitless negotiations in the previous 16

[[Page 5707]]

     years, but we were able to get it done in the 17th round. We 
     achieved success by proceeding on the basis that ``while 
     sovereignty cannot be compromised, resources may be shared.'' 
     The agreement allows fishing boats from both countries to 
     operate, for the first time in more than 40 years, in 
     disputed waters twice the size of Taiwan near the Diaoyutai 
     Islands. Meanwhile, the territorial claims of both sides 
     remain intact thanks to the inclusion of a ``without 
     prejudice'' clause. The agreement embraces the spirit of the 
     East China Sea Peace Initiative, and has won wide support 
     within Taiwan and Japan, from the U.S., and in the 
     international community in general.
       We also acted in line with the East China Sea Peace 
     Initiative to resolve a dispute with the Philippines after 
     the Philippine Coast Guard shot a Taiwan fisherman dead in 
     May last year. After months of intense negotiations, the 
     Philippine government made an official apology, provided 
     compensation for the victim's family. The perpetrators were 
     charged with homicide by the Philippine Department of Justice 
     last month. In addition, the two sides agreed to refrain from 
     the use of force in law enforcement actions, to notify the 
     other side before taking any enforcement action, and to 
     promptly release detained fishing vessels and crew in case of 
     arrest.
       Then, in November last year, when the Philippines was hard 
     hit by Typhoon Haiyan--known there as Typhoon Yolanda--
     causing more than 6,000 deaths, we immediately delivered 680 
     tons of relief supplies to the devastated area on 18 air 
     force cargo flights and one naval vessel. The donations were 
     worth $12 million U.S. dollars.
       After the Japanese earthquake in March 2011, which took 
     more than 18,000 lives, my government immediately announced a 
     donation of $3.3 million U.S. dollars to assist in the rescue 
     effort. In the following two months, the people of Taiwan 
     donated around $230 million U.S. dollars. This was the single 
     largest amount of foreign assistance ever donated by the 
     people of Taiwan. In fact, it exceeded the sum total of 
     donations provided to Japan by 93 other countries that 
     provided assistance. I would add that my wife and I also 
     played a small part when we joined a telethon to solicit 
     donations.
       These measures reflect our determination to be a peacemaker 
     and a provider of humanitarian aid in the international 
     community.
       To forestall the possibility of military conflict over the 
     East China Sea Air Defense Identification Zone, I issued the 
     Statement on East China Sea Air Space Security on February 26 
     this year. In this statement, I proposed that all parties 
     concerned should seek to resolve disputes by peaceful means 
     pursuant to international law and the East China Sea Peace 
     Initiative. I also proposed that the parties should formulate 
     an East China Sea Code of Conduct and set up a multilateral 
     negotiation mechanism.
       I was pleased to learn of the testimony given by U.S. 
     Assistant Secretary of State Daniel Russel on February 5 this 
     year before the House Foreign Affairs Subcommittee on Asia 
     and the Pacific. He mentioned that the principles of the East 
     China Sea Peace Initiative ``are at the heart of the U.S. 
     strategy and the U.S. effort, namely respect for 
     international law and peaceful resolution of disputes.'' In 
     fact, the spirit of the East China Sea Peace Initiative could 
     also apply to the South China Sea.


                        A Peaceful Taiwan Strait

       Now, let us turn to cross-strait relations. Since I took 
     office in 2008, I have pursued a cross-strait policy of 
     maintaining the political status quo. This means ``no 
     unification, no independence, and no use of force'' under the 
     framework of the ROC Constitution. It also means maintaining 
     peaceful cross-strait relations on the basis of the 1992 
     Consensus, namely, ``one China, respective interpretations.'' 
     And in order to ensure sustainable peace across the Taiwan 
     Strait, I have also formally announced that we will not 
     pursue policies such as ``two Chinas,'' ``one China, one 
     Taiwan,'' or ``Taiwan independence.''
       Thanks to the joint efforts of both sides, cross-strait 
     relations are at their best state in over six decades. To 
     date, the two sides have completed 10 rounds of talks, signed 
     21 agreements, and plan to exchange representative offices in 
     the future. Some of the main areas covered under the 21 
     agreements include economic cooperation, transportation, 
     health, science, agriculture, and mutual judicial assistance. 
     The number of regularly scheduled direct cross-strait flights 
     has increased from zero to 118 per day. The number of 
     mainland visitors per year has gone up from 290,000 to 2.8 
     million, nearly a tenfold increase. And the number of 
     mainland students in Taiwan has jumped from 800 to 24,000, a 
     thirtyfold increase. Meanwhile, law enforcement agencies from 
     Taiwan and the mainland have cooperated to arrest nearly 
     6,000 criminal suspects. As a result, the number of scam 
     cases has been cut by 60% from its peak, and the resulting 
     financial losses to victims in Taiwan have fallen by 80% from 
     its peak. It is evident that improved cross-strait relations 
     bring tangible benefits to Taiwan.
       We'll continue to focus on similar topics. We do not 
     exclude political topics, however, if the people of Taiwan 
     support it.
       Our Mainland Affairs Minister Wang Yu-Chi visited mainland 
     China last February to meet in Nanjing with his counterpart, 
     Minister Zhang Zhijun of the Taiwan Affairs Office. This was 
     the first official meeting of its kind since the two sides 
     came under separate rule 65 years ago. This meeting 
     represented the gradual institutionalization of the cross-
     strait relationship, and was a historic milestone on the path 
     toward sustainable peace and prosperity. These developments 
     prove that viable diplomacy and cross-strait relations are 
     indeed complementary and constitute a virtuous cycle.
       Again, I want to thank the United States for Assistant 
     Secretary Daniel Russel's recent testimony in the Senate 
     Foreign Relations Committee, where he said, and I quote, ``we 
     very much welcome and applaud the extraordinary progress that 
     has occurred in cross-strait relations under the Ma 
     administration.''


                 Enhancing ROC-U.S. Economic Relations

       Trade and investment relations between the ROC and U.S. 
     have always been close. In 2013, Taiwan was the 12th largest 
     trading partner of the U.S. for goods, with $57.7 billion 
     U.S. dollars in two-way trade. The United States is the 
     largest source of foreign direct investment in Taiwan, 
     cumulatively investing $23 billion U.S. dollars as of January 
     2014.
       In March last year, we resumed talks under the 1994 Taiwan-
     U.S. Trade and Investment Framework Agreement (TIFA), and we 
     just successfully concluded the 8th TIFA meetings last week 
     in Washington. I want to praise the hard work of both sides 
     and the positive outcome achieved in the meetings. I hope 
     that we can launch the negotiation of a bilateral investment 
     agreement (BIA) in the near future. A BIA would serve as the 
     beginning of a more robust and comprehensive economic 
     relationship between our two countries.
       Taiwan is an important security and economic partner of the 
     U.S., as former Secretary of State Hillary Clinton stated in 
     2011. To further demonstrate our commitment to enhancing 
     trade and investment relations with the U.S., Taiwan sent a 
     delegation of 42 business leaders to the SelectUSA Investment 
     Summit last fall. Our delegation was the third largest among 
     over 60 participating countries. We also dispatched a high-
     level CEO delegation led by former ROC Vice President Vincent 
     Siew to the U.S. last November to promote investment in the 
     U.S. from Taiwan.


   ROC's Determination to Actively Participate in Regional Economic 
                              Integration

       To improve Taiwan's competitiveness and avoid the danger of 
     being marginalized, I began pursuing deregulation and market 
     opening immediately after taking office in 2008. The lack of 
     diplomatic ties makes it difficult for us to negotiate free 
     trade agreements (FTAs) with our major trading partners. To 
     break the isolation, we decided to start with mainland China, 
     our largest trading partner since 2003. We successfully 
     concluded the Cross-Straits Economic Cooperation Framework 
     Agreement (ECFA) in 2010. This was followed in 2011 by an 
     investment agreement with Japan, our second largest trading 
     partner and investor. Last year, we signed an economic 
     cooperation agreement (ANZTEC) with New Zealand in July, and 
     an economic partnership agreement (ASTEP) with Singapore in 
     November. We are also in contact with other potential 
     partners in Asia and Europe in the hope of concluding more 
     such accords.
       In addition to bilateral trade negotiations, we must also 
     take part in regional arrangements. Taiwan has highly 
     developed markets, and shares Pacific borders with the 
     world's three largest economies--the U.S., mainland China, 
     and Japan. The ASEAN nations are also nearby. Taiwan should 
     not be excluded from the process of economic integration in 
     East Asia.
       Given that Taiwan's trade with the 12 members of the Trans-
     Pacific Partnership (TPP) in 2013 came to nearly $200 billion 
     U.S. dollars and accounted for 34% of Taiwan's total external 
     trade, we believe Taiwan's membership in the TPP would 
     definitely be beneficial not only for Taiwan, but also for 
     all TPP member states.
       Moreover, a TPP with Taiwan's membership would not only 
     assure Taiwan's economic security, but would also help 
     strengthen the economic presence of the U.S. in the Asia-
     Pacific region. In this regard, I am pleased to acknowledge 
     the statements made by Assistant Secretary of State Daniel 
     Russel and Deputy Assistant Secretary of State Kin Moy 
     recently at Congressional hearings. At the hearings, they 
     both stated that the U.S. welcomed Taiwan's interest in the 
     TPP.
       In the meantime, Taiwan also trades heavily with the 16 
     member countries of the Regional Comprehensive Economic 
     Partnership (RCEP). In 2013, our trade volume with RCEP 
     countries came to $325 billion U.S. dollars, or about 57% of 
     Taiwan's total external trade. It is only natural that Taiwan 
     is also seeking membership in the RCEP.
       A recent effort by our government for a TPP and RCEP 
     membership is the free economic pilot zones (FEPZs). The goal 
     of the FEPZs is to establish a good environment for doing 
     business, and to pave the way for Taiwan's membership in the 
     TPP and RCEP. The American Chamber of Commerce in Taipei puts 
     out a magazine called Taiwan Business Topics that has 
     commented on our

[[Page 5708]]

     FEPZs. Allow me to quote from the magazine: ``The (Taiwan) 
     government's initiative in establishing Free Economic Pilot 
     Zones is an indication of its seriousness in seeking 
     innovative new directions for the Taiwan economy.'' The new 
     directions that the Chamber is referring to here are 
     liberalization and globalization.


                               Conclusion

       Ladies and gentlemen, Taiwan and the U.S. are determined to 
     maintain peace and stability in East Asia, and we are working 
     together to do so. If actions speak louder than words, then 
     the U.S. has certainly spoken loudly and forcefully in 
     support of our century-long partnership. We continue to be 
     grateful for America's political, economic, and security 
     support.
       And, as I have noted, with admission to the TPP and RCEP a 
     top priority for my administration, I hope, on this 35th 
     anniversary of the TRA, that the United States will join us 
     in this effort. I do believe we can approach this goal as the 
     beginning of a bright new chapter in the Taiwan-U.S. 
     partnership. The sky is the limit, so let's soar on the wings 
     of this unique partnership!
       Ladies and gentlemen, thank you for your attention. I now 
     look forward to your questions.

  Ms. EDDIE BERNICE JOHNSON of Texas. Mr. Speaker, I rise today to 
recognize the 35th anniversary of the enactment of the Taiwan Relations 
Act (TRA) which has governed our relationship with Taiwan since its 
enactment.
  The TRA was signed into law April 10, 1979, by President Carter in 
order to maintain economic, cultural, and security ties with Taiwan in 
the absence of an official diplomatic relationship. The TRA has been 
vital in strengthening this mutually-beneficial partnership over the 
last 35 years. The U.S. enjoys no closer friend than Taiwan. Our 
friendship is built on a firm foundation of shared values--democracy 
and freedom, free and fair elections, a free press, and a free economy.
  Taiwan has created a vibrant economy and is a significant trading 
partner to the United States. It is also a major innovator and producer 
of IT products--many of which are assembled in China. Taiwan already 
plays a critical role in the global supply chain and has proven they 
would be an asset to the Trans-Pacific Partnership if included.
  Taiwan has used thoughtful dialogue and trade to help ease cross 
strait tensions, ensuring peace in the Western Pacific and resulting in 
greater security for the United States. I invite my colleagues to join 
me in commemorating the 35th anniversary of the TRA and in expressing 
our commitment to our relationship with Taiwan.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from California (Mr. Royce) that the House suspend the rules 
and pass the bill, H.R. 3470, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  The title of the bill was amended so as to read: ``A bill to affirm 
the importance of the Taiwan Relations Act, to provide for the transfer 
of naval vessels to certain foreign countries, and for other 
purposes''.
  A motion to reconsider was laid on the table.

                          ____________________