The Incentives for Nuclear Nonproliferation in India and China Act of 1999

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``The Incentives for Nuclear 
Nonproliferation in India and China Act of 1999''.

SEC. 2. CONDITIONS FOR SUSPENSION OF SANCTIONS.

    (a) Suspension of Sanctions With Respect to China.--
            (1) Authority to suspend sanctions.--Subject to section 3 
        of this Act, in addition to the requirements set forth in 
        section 902(a) of the Foreign Relations Authorization Act, 
        Fiscal Years 1990 and 1991 (22 U.S.C. 2151 note), for lifting 
        the sanctions imposed on the People's Republic of China under 
        that section, the President may suspend, for periods of 1 year 
        each, any of the sanctions imposed under that section only if 
        that country has met the requirements of paragraph (2) and the 
        President certifies to the Congress that the People's Republic 
        of China is making progress in achieving the goals set forth in 
        paragraph (3).
            (2) Requirements.--The requirements referred to in 
        paragraph (1) are the following:
                    (A) Becoming a participant in, and controlling 
                missile equipment and technology in accordance with the 
                criteria and standards set forth in, the Missile 
                Technology Control Regime.
                    (B) Refraining from exporting any nuclear weapons 
                or technology or any biological or chemical weapons.
                    (C) Becoming a member of the Nuclear Suppliers' 
                Group.
            (3) Goals.--The goals referred to in paragraph (1) are the 
        following:
                    (A) Providing for comprehensive cultural and 
                educational exchange between among India and the 
                People's Republic of China.
                    (B) Developing and institutionalizing a framework 
                for talks to end disputes between India and the 
                People's Republic of China.
                    (C) Reinforcing actions to increase trade relations 
                between India and the People's Republic of China.
    (b) Suspension of Sanctions With Respect to India.--
            (1) Authority to suspend sanctions.--The President may 
        suspend, for periods of 1 year each, any of the sanctions 
        imposed under section 102(b) of the Arms Export Control Act (22 
        U.S.C. 2799-1(b)(A) on India if India has met the requirements 
        of paragraph (2) and the President certifies to the Congress 
        that India is making progress in achieving the goals set forth 
        in paragraph (3). The authority under this paragraph to suspend 
        sanctions shall take effect upon the expiration of the 
        suspension by the President, under section 902 of the India-
        Pakistan Relief Act of 1998, of sanctions with respect to 
        India.
            (2) Requirements.--The requirements referred to in 
        paragraph (1) are the following:
                    (A) Signing the Comprehensive Test Ban Treaty.
                    (B) Reducing the development of nuclear weapons 
                by--
                            (i) freezing stockpiles of nuclear weapons;
                            (ii) halting production of fissile material 
                        (highly enriched uranium and plutonium 
                        processed for use in weapons) and participating 
                        in talks to conclude the Fissile Material Cut-
                        off Treaty; and
                            (iii) agreeing not to place nuclear 
                        warheads and weapons of mass destruction on 
                        missile systems, and agreeing not to have 
                        nuclear warheads on alert status or deploy or 
                        test ballistic missiles.
                    (C) Refraining from exporting any nuclear weapons 
                or technology.
                    (D) Becoming a member of the Nuclear Suppliers' 
                Group.
            (3) Goals.--The goals referred to in paragraph (1) are the 
        following:
                    (A) Signing the Treaty on the Non-Proliferation on 
                Nuclear Weapons.
                    (B) Cooperating fully with the United States on 
                activities to fight international terrorism and 
                narcotics trafficking.
                    (C) Providing for comprehensive cultural and 
                educational exchange between India and the People's 
                Republic of China.
                    (D) Developing and institutionalizing a framework 
                for talks to end disputes between India and the 
                People's Republic of China.
                    (E) Reinforcing actions to increase trade relations 
                between India and the People's Republic of China.
    (c) Additional Incentives.--In addition to suspending sanctions 
under subsection (a), the President may take the following actions with 
respect to India if that country has met the requirements of subsection 
(b)(2):
            (1) Taking actions to encourage United States businesses to 
        increase investment in that country as long as economic reforms 
        undertaken in that country continue, including--
                    (A) encouraging the Export-Import Bank of the 
                United States to offer financing at low interest rates 
                to United States businesses seeking to make investments 
                in that country;
                    (B) providing political risk insurance through the 
                Overseas Private Investment Corporation for United 
                States businesses seeking to invest in that country; 
                and
                    (C) making assistance available through the Trade 
                and Development Agency to United States businesses 
                seeking to invest in that country.
            (2) Supporting financial assistance to that country by 
        international financial institutions.
            (3) Authorizing the transfer of technology to that country 
        for civilian uses that will provide United States businesses 
        access to markets in India to provide the necessary knowledge, 
        processes, materials, and equipment to further economic 
        development in that country. Nothing in this paragraph 
        authorizes the transfer of technology that would assist in the 
        development of nuclear, chemical, or biological weapons, or the 
        transfer of missile or other military technology that would 
        contribute to regional instability.

SEC. 3. REMOVAL OF NATIONAL INTEREST WAIVER.

    Upon the enactment of this Act, the President may not waive or 
terminate any of the sanctions imposed on the People's Republic of 
China under section 902(a) of the Foreign Relations Authorization Act, 
Fiscal Years 1990 and 1991 on the basis of the national interest of the 
United States as set forth in section 902(b)(2) of that Act.

SEC. 4. TERMINATION OF SANCTIONS.

    (a) With Respect to China.--If the President certifies to the 
Congress that the People's Republic of China has met the requirements 
of section 2(a)(2) and has achieved the goals set forth in section 
2(a)(3), then the President may terminate the sanctions imposed on that 
country under section 902(a) of the Foreign Relations Authorization 
Act, fiscal Years 1990 and 1991.
    (b) With Respect to India.--If the President certifies to the 
Congress that India has signed the Treaty on the Non-Proliferation on 
Nuclear Weapons, has met the rquirements of section 2(b)(2), and has 
achieved the goals set forth in section 2(b)(3), then the President may 
terminate the sanctions imposed on that country under section 102(b) of 
the Arms Export Control Act.
    (c) Reinstatement of Sanctions.--If at any time after sanctions are 
suspended or terminated under this Act with respect to People's 
Republic of China or India, that country ceases to meet the criteria 
under this Act for such suspension or termination, then the President 
shall reinstate the sanctions waived or terminated, as the case may be, 
with respect to that country.

Summary: The Incentives for Nuclear Nonproliferation in India and China Act of 1999 - Authorizes the President to suspend, for a specified period, certain sanctions imposed on the People's Republic of China and India if such countries meet certain requirements and goals, including: (1) becoming a member of the Missile Technology Control Regime, the Nuclear Suppliers' Group, and the Comprehensive Test Ban Treaty. (2) refraining from exporting any nuclear weapons or technology or any biological or chemical weapons, (3) reducing the development of nuclear weapons. (4) providing for comprehensive cultural and educational exchange, including increasing trade, between India and China. (5) developing a framework for talks to end disputes between the two countries. And (6) cooperating with the United States on activities to fight international terrorism and narcotics trafficking. Authorizes the President to waive such sanctions if it is in the national interest of the United States. Authorizes the President to terminate such sanctions against China and India if the President certifies to Congress that they have met the requirements and goals contained in this Act.