Hong Kong Reversion Act

Summary: Hong Kong Reversion Act - Directs the President to consider the performance of the Hong Kong Government and the actions of the Chinese Government when determining whether Hong Kong is not sufficiently autonomous to justify treatment under a particular U.S. law different from that accorded China as required under the United States-Hong Kong Policy Act of 1992. Directs the Secretary of State to include in each annual report to the Congress on conditions in Hong Kong, among other things, assessments of:  (1) Hong Kong's or China's cooperation in securing certain agreements with the United States; and (2) the autonomy of Hong Kong and its customs territory (including any unprecedented diversion of Chinese exports through Hong Kong in order to attain preferential treatment in U.S. markets). Authorizes extension of the International Organizations Immunities Act to the Hong Kong Economic and Trade Offices (Hong Kong's official economic and trade missions in the United States) in the same manner as such Act may be extended to a public international organization in which the United States participates pursuant to any treaty or Act of the Congress. Authorizes the President to apply to such Offices certain provisions of the Agreement on State and Local Taxation of Foreign Employees of Public International Organizations.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Hong Kong Reversion Act''.

SEC. 2. STATEMENT OF PURPOSE.

    The purpose of this Act is to support the autonomous governance of 
Hong Kong and the future well-being of the Hong Kong people by ensuring 
the continuity of United States laws with respect to Hong Kong after 
its reversion to the People's Republic of China on July 1, 1997, and to 
outline circumstances under which the President of the United States 
could modify the application of United States laws with respect to Hong 
Kong if the People's Republic of China fails to honor its commitment to 
give the Special Administrative Region of Hong Kong a high degree of 
autonomy.

SEC. 3. FINDINGS.

    The Congress makes the following findings:
            (1) The Joint Declaration of the Government of the United 
        Kingdom of Great Britain and Northern Ireland and the 
        Government of the People's Republic of China on the Question of 
        Hong Kong, done at Beijing on December 19, 1984, is a binding 
        international agreement which sets forth the commitments made 
        by both governments on the reversion of Hong Kong to the 
        People's Republic of China on July 1, 1997.
            (2) The People's Republic of China in the Joint Declaration 
        pledges, among other things, that ``the Hong Kong Special 
        Administrative Region will enjoy a high degree of autonomy, 
        except in foreign and defence affairs. . .,'' that basic human 
        rights and freedoms ``will be ensured by law. . .,'' and that 
        ``[t]he legislature of the Hong Kong Special Administrative 
        Region shall be constituted by elections.''.
            (3) Senior government officials of the People's Republic of 
        China have repeatedly assured a smooth transfer of Hong Kong to 
        Chinese sovereignty, a successful implementation of the ``one 
        country, two systems'' policy, long-term prosperity for Hong 
        Kong, and continued respect for the basic rights of the Hong 
        Kong people.
            (4) Despite general assertions guaranteeing the autonomous 
        governance of Hong Kong, several official acts and statements 
        by senior officials of the Government of the People's Republic 
        of China reflect an attempt to infringe upon the current and 
        future levels of autonomy in Hong Kong. These acts or 
        statements include, but are not limited to--
                    (A) initial proposals, which were later withdrawn, 
                by officials of the Government of the People's Republic 
                of China to obtain confidential files on civil servants 
                of the Hong Kong Government or require such civil 
                servants to take ``loyalty oaths'';
                    (B) the decision of the Government of the People's 
                Republic of China to dissolve the democratically 
                elected Legislative Council on July 1, 1997, and the 
                appointment of a provisional legislature in December of 
                1996;
                    (C) the delineation by officials concerning the 
                types of speech and association which will be permitted 
                by the Government of the People's Republic of China 
                after the reversion;
                    (D) initial warnings, which were later withdrawn, 
                to religious institutions not to hold certain 
                gatherings after the reversion; and
                    (E) the decision on February 23, 1997, of the 
                Standing Committee of the National People's Congress of 
                the People's Republic of China to repeal or amend 
                certain Hong Kong ordinances, including the Bill of 
                Rights Ordinance, the Societies Ordinance of 1992 
                (relating to freedom of association), and the Public 
                Order Ordinance of 1995 (relating to freedom of 
                assembly).
            (5) The reversion of Hong Kong to the People's Republic of 
        China has important implications for both United States 
        national interests and the interests of the Hong Kong people. 
        The United States Government has a responsibility to ensure 
        that United States interests are protected during and after 
        this transition, and it has a profound interest in ensuring 
        that basic and fundamental human rights of the Hong Kong people 
        are also protected.
            (6) The United States-Hong Kong Policy Act of 1992 sets 
        forth United States policy concerning Hong Kong's reversion to 
        the People's Republic of China on July 1, 1997, and Hong Kong's 
        special status as a Special Administrative Region of that 
        country. It ensures the continuity of United States laws 
        regarding Hong Kong while establishing a mechanism in section 
        202 of that Act whereby the President can modify the 
        application of United States laws with respect to Hong Kong if 
        the President ``determines that Hong Kong is not sufficiently 
        autonomous to justify treatment under a particular law of the 
        United States, or any provision thereof, different from that 
        accorded the People's Republic of China''.
            (7) One of the principal purposes of the Congress in 
        enacting the United States Hong Kong Policy Act of 1992 was to 
        maintain Hong Kong's autonomy by ensuring that the United 
        States will continue to treat Hong Kong as a distinct legal 
        entity, separate and apart from the People's Republic of China, 
        for all purposes, in those areas in which the People's Republic 
        of China has agreed that Hong Kong will continue to enjoy a 
        high degree of autonomy, unless the President makes a 
        determination under section 202 of that Act.
            (8) Although the United States Government can have an 
        impact on ensuring the future autonomy of the Hong Kong 
        Government and in protecting the well-being of the Hong Kong 
        people, ultimately the future of Hong Kong will be determined 
        by the willingness of the Government of the People's Republic 
        of China to maintain the freedoms now enjoyed by the people of 
        Hong Kong and to rely on the people of Hong Kong to govern 
        themselves.

SEC. 4. CONGRESSIONAL DECLARATIONS.

    The Congress makes the following declarations:
            (1) Recognizing that the United States Government and the 
        Hong Kong Government have long enjoyed a close and beneficial 
        working relationship, for example between the United States 
        Customs Service, the Federal Bureau of Investigation, the Drug 
        Enforcement Administration, the Immigration and Naturalization 
        Service, the Secret Service, and their corresponding agencies 
        of the Hong Kong Government, the United States urges the two 
        governments to continue their effective cooperation.
            (2) Recognizing that the preservation of Hong Kong's 
        autonomous customs territory has important security and 
        commercial implications for the United States and the people of 
        Hong Kong, the United States calls upon the People's Republic 
        of China to fully respect the autonomy of the Hong Kong customs 
        territory.
            (3) Recognizing that Hong Kong has historically been an 
        important port of call for United States naval vessels, the 
        United States urges the Government of the People's Republic of 
        China to consider in a timely and routine manner United States 
        requests for port calls at Hong Kong.
            (4) Recognizing that Hong Kong enjoys a robust and 
        professional free press with important guarantees on the 
        freedom of information, the United States declares that a free 
        press and access to information are fundamentally important to 
        the economic and commercial success of Hong Kong and calls upon 
        the Government of the People's Republic of China to fully 
        respect these essential rights of the Hong Kong people.
            (5) Recognizing that the first fully democratic elections 
        of a legislature in Hong Kong took place in 1995, following 
        nearly 150 years of colonial rule, the United States recognizes 
        that the Joint Declaration of 1984 requires that the Special 
        Administrative Region legislature ``shall be constituted by 
        elections'', declares that the failure to have an elected 
        legislature would be a violation of the Joint Declaration of 
        1984, and calls upon the Government of the People's Republic of 
        China to honor its treaty obligations.
            (6) Recognizing that the United Kingdom belatedly reformed 
        Hong Kong laws with respect to the civil rights of the Hong 
        Kong people, the Hong Kong people have nevertheless long 
        enjoyed essential rights and freedoms as enumerated in the 
        Universal Declaration of Human Rights; therefore, the United 
        States declares that the decision of the National People's 
        Congress to repeal or amend certain ordinances is a serious 
        threat to the Hong Kong people's continued enjoyment of their 
        freedom of association, speech, and other essential human 
        rights, unless those rights are reestablished no later than 
        July 1, 1997, and calls upon the National People's Congress to 
        reconsider its decision.
            (7) Recognizing that under the terms of the Joint 
        Declaration of 1984 the provisions of the International 
        Covenant on Civil and Political Rights will continue to apply 
        in Hong Kong, the United States welcomes the public statement 
        by the Chief Executive-designate of Hong Kong that the 
        legislation which will replace repealed or amended sections of 
        the Societies Ordinance and Public Order Ordinance will be the 
        subject of public consultation, and urges that the new 
        legislation should reflect both the clearly expressed wishes of 
        the people of Hong Kong and the provisions of the International 
        Covenant on Civil and Political Rights.
            (8) Recognizing that Hong Kong currently maintains an 
        efficient capitalist economy and trade system by strictly 
        adhering to the rule of law, by honoring the sanctity of 
        contract, and by operating without corruption and with minimum 
        and transparent regulation, the United States calls upon the 
        Government of the People's Republic of China to fully respect 
        the autonomy and independence of the chief executive, the civil 
        service, the judiciary, the police of Hong Kong, and the 
        Independent Commission Against Corruption.

SEC. 5. PRESIDENTIAL DETERMINATION UNDER SECTION 202 OF THE UNITED 
              STATES-HONG KONG POLICY ACT OF 1992 AND ADDITIONAL 
              REPORTING REQUIREMENTS.

    (a) In General.--In determining whether ``Hong Kong is not 
sufficiently autonomous to justify treatment under a particular law of 
the United States, or any provision thereof, different from that 
accorded the People's Republic of China,'' as required by section 
202(a) of the United States-Hong Kong Policy Act of 1992, the President 
of the United States, based upon the assessments made pursuant to 
subsection (b) of this section, as well as other information included 
in the reports submitted under section 301 of the United States-Hong 
Kong Policy Act of 1992, shall consider the performance of the Hong 
Kong Government and the actions of the Government of the People's 
Republic of China.
    (b) Requirements for Reports to Congress.--The Secretary of State 
shall include, in each report required by section 301 of the United 
States-Hong Kong Policy Act of 1992, the following:
            (1) Successful and timely conclusion of agreements and 
        treaties.--An assessment by the Secretary of State of whether 
        the Hong Kong Government or the People's Republic of China, or 
        both, as the case may be, have cooperated with the United 
        States Government in securing the following agreements or 
        treaties:
                    (A) A bilateral investment treaty.
                    (B) An extradition treaty.
                    (C) An agreement on consular access in Hong Kong 
                for United States citizens comparable to that provided 
                for in the consular convention between the United 
                States and the People's Republic of China.
                    (D) An agreement to preserve the United States 
                consulate, with privileges and immunities for United 
                States personnel.
                    (E) A mutual legal assistance agreement.
                    (F) A prison transfer agreement.
                    (G) A civil aviation agreement.
            (2) Continued cooperation from the agencies of the hong 
        kong government.--An assessment by the Secretary of State of 
        whether agencies of the Hong Kong Government continue to 
        cooperate with United States Government agencies. The Secretary 
        of State shall cite in the report any evidence of diminished 
        cooperation in the areas of customs enforcement, drug 
        interdiction, and prosecution and prevention of money 
        laundering, counterfeiting, credit card fraud, and organized 
        crime.
            (3) Preservation of good governance and rule of law in hong 
        kong.--An assessment by the Secretary of State of whether the 
        Hong Kong Government remains autonomous and relatively free of 
        corruption and whether the rule of law is respected in Hong 
        Kong. The Secretary of State shall cite in the report any--
                    (A) efforts to annul or curtail the application of 
                the Bill of Rights of Hong Kong;
                    (B) efforts to prosecute for violations of, or 
                broaden the application of, laws against treason, 
                secession, sedition, and subversion;
                    (C) acts or threats against nonviolent civil 
                disobedience;
                    (D) interference in the autonomy of the chief 
                executive, the civil service, the judiciary, or the 
                police;
                    (E) increased corruption in the Hong Kong 
                Government; and
                    (F) efforts to suppress freedom of the press or 
                restrict the free flow of information.
            (4) Preservation of the autonomy of the customs territory 
        of hong kong.--An assessment by the Secretary of State of 
        whether the customs territory of Hong Kong is administered in 
        an autonomous manner. The Secretary of State shall cite in the 
        report any--
                    (A) failure to respect United States textile laws 
                and quotas;
                    (B) failure to enforce United States export control 
                laws or export license requirements;
                    (C) unauthorized diversions from Hong Kong of high 
                technology exports from the United States to Hong Kong;
                    (D) unprecedented diversion of Chinese exports 
                through Hong Kong in order to attain preferential 
                treatment in United States markets; and
                    (E) misuse of the customs territory of Hong Kong to 
                implement the foreign policy or trade goals of the 
                Government of the People's Republic of China.

SEC. 6. EXTENSION OF CERTAIN PRIVILEGES, EXEMPTIONS, AND IMMUNITIES TO 
              HONG KONG ECONOMIC AND TRADE OFFICES.

    (a) Application of International Organizations Immunities Act.--The 
provisions of the International Organizations Immunities Act (22 U.S.C. 
288 et seq.) may be extended to the Hong Kong Economic and Trade 
Offices in the same manner, to the same extent, and subject to the same 
conditions as such provisions may be extended to a public international 
organization in which the United States participates pursuant to any 
treaty or under the authority of any Act of Congress authorizing such 
participation or making an appropriation for such participation.
    (b) Application of International Agreement on Certain State and 
Local Taxation.--The President is authorized to apply the provisions of 
Article I of the Agreement on State and Local Taxation of Foreign 
Employees of Public International Organizations, done at Washington, 
D.C. on April 21, 1994, to the Hong Kong Economic and Trade Offices.
    (c) Definition.--The term ``Hong Kong Economic and Trade Offices'' 
refers to Hong Kong's official economic and trade missions in the 
United States.

            Passed the House of Representatives March 11, 1997.

            Attest:

                                                ROBIN H. CARLE,

                                                                 Clerk.