II

106TH CONGRESS

1ST SESSION S. 1352

To impose conditions on assistance authorized for North Korea, to impose

restrictions on nuclear cooperation and other transactions with North

Korea, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JULY 13 (legislative day, JULY 12), 1999

Mr. HELMS introduced the following bill; which was read twice and referred

to the Committee on Foreign Relations

A BILL

To impose conditions on assistance authorized for North

Korea, to impose restrictions on nuclear cooperation and

other transactions with North Korea, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘North Korea Threat

5 Reduction Act of 1999’’.

6 SEC. 2. FINDINGS.

7 The Congress makes the following findings:
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1 (1) Under the Agreed Framework of October

2 21, 1994, the Democratic People’s Republic of

3 Korea (North Korea) committed to freeze and even4 tually dismantle its nuclear program, in exchange for

5 annual deliveries of 500,000 tons of heavy fuel oil,

6 and the construction of two 1,000 megawatt light

7 water nuclear power reactors costing approximately

8 $5,000,000,000.

9 (2) Reports of continued nuclear activities in

10 North Korea have brought into question North Ko11 rea’s commitment to abide by the conditions of the

12 1994 Geneva Agreed Framework.

13 (3) North Korea’s ongoing development, pro14 duction, testing, deployment, and proliferation of

15 ballistic missiles presents a clear and present danger

16 to forward-deployed United States Armed Forces in

17 Asia, United States friends and allies, and the

18 United States.

19 (4) North Korea has become the largest recipi20 ent of United States foreign assistance in East Asia,

21 valued at over $225,000,000 in 1998 alone.

22 (5) North Korea is a major producer of opium

23 and increasingly is involved in illicit narcotics traf24 ficking.
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1 SEC. 3. ASSISTANCE FOR THE KOREAN PENINSULA ENERGY

2 DEVELOPMENT ORGANIZATION.

3 (a) AUTHORIZATION OF APPROPRIATIONS.—

4 (1) IN GENERAL.—There is authorized to be

5 appropriated for fiscal year 2000 $55,000,000 for

6 assistance to the Korean Peninsula Energy Develop7 ment Organization (KEDO).

8 (2) ADDITIONAL REQUIREMENT.—Assistance

9 under paragraph (1) may be provided notwith10 standing any other provision of law (other than sub11 sections (b), (c), (d), and (e) of this section).

12 (b) PROHIBITION ON ASSISTANCE TO NUCLEAR RE13 ACTOR CONSTRUCTION.—Notwithstanding any other pro14 vision of law, none of the funds authorized to be appro15 priated by subsection (a), or made available under any

16 other provision of law, may be used to assist the construc17 tion of nuclear reactors in North Korea.

18 (c) CONDITIONS FOR RELEASE OF FUNDS.—Not19 withstanding any other provision of law, none of the funds

20 authorized to be appropriated by subsection (a), or made

21 available under any other provision of law, may be made

22 available to KEDO, or for assistance to North Korea for

23 purposes related to the Agreed Framework, until the

24 President determines and reports to the Committees on

25 International Relations and Appropriations of the House
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1 of Representatives and the Committees on Foreign Rela2 tions and Appropriations of the Senate that—

3 (1) the parties to the Agreed Framework have

4 taken and continue to take demonstrable steps to

5 implement the Joint Declaration on

6 Denuclearization in which the Government of North

7 Korea has committed not to test, manufacture,

8 produce, receive, possess, store, deploy, or use nu9 clear weapons, and not to possess nuclear reprocess10 ing or uranium enrichment facilities;

11 (2) the parties to the Agreed Framework have

12 taken and continue to take demonstrable steps to

13 pursue the North-South dialogue;

14 (3) North Korea is complying with all provi15 sions of the Agreed Framework;

16 (4) the effort to can and safely store all spent

17 fuel from North Korea’s graphite-moderated nuclear

18 reactors has been successfully concluded;

19 (5) North Korea has not diverted assistance

20 provided by the United States for purposes for

21 which it was not intended;

22 (6) the United States has reached agreement

23 with North Korea satisfying United States concerns

24 regarding suspect underground construction, and
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1 North Korea has complied with its obligations under

2 that agreement;

3 (7) North Korea is not seeking to develop or ac4 quire the capability to enrich uranium, or any addi5 tional capability to reprocess spent nuclear fuel; and

6 (8) the United States has made and is con7 tinuing to make significant progress on eliminating

8 the North Korean ballistic missile threat, including

9 its ballistic missile exports.

10 (d) WITHHOLDING OF FUNDS PENDING SOLICITA11 TION OF ALL POTENTIAL DONOR GOVERNMENTS TO

12 KEDO.—Amounts appropriated in excess of $35,000,000

13 pursuant to the authorization of appropriations under sub14 section (a) may not be made available to KEDO until the

15 President determines and reports to the Committees on

16 International Relations and Appropriations of the House

17 of Representatives and the Committees on Foreign Rela18 tions and Appropriations of the Senate that—

19 (1) the United States has asked all potential

20 donor governments, including Taiwan, to contribute

21 to KEDO;

22 (2) no contributions offered unconditionally by

23 such governments to KEDO have been declined; and

24 (3) even after such contributions are received,

25 KEDO will have financial requirements in fiscal year
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1 2000 that can only be met by the provision of more

2 than $35,000,000 in assistance from the United

3 States.

4 (e) LIMITATION ON USE OF SPECIAL AUTHORI5 TIES.—The authority of section 614 of the Foreign Assist6 ance Act of 1961 (22 U.S.C. 2364) may not be used to

7 authorize the provision of assistance that cannot be pro8 vided due to any prohibition, restriction, or condition on

9 release of funds that is contained in subsection (b), (c),

10 or (d).

11 SEC. 4. FOOD ASSISTANCE TO NORTH KOREA.

12 Notwithstanding any other provision of law, none of

13 the funds authorized to be appropriated by section 3(a),

14 or made available under any other provision of law, may

15 be made available for food assistance for North Korea

16 until the President determines and reports to the Commit17 tees on International Relations and Appropriations of the

18 House of Representatives and the Committees on Foreign

19 Relations and Appropriations of the Senate that—

20 (1) the Government of the Republic of Korea

21 concurs in the delivery and procedures for delivery

22 of United States food assistance to North Korea;

23 (2) previous United States food assistance to

24 North Korea has not been significantly diverted to

25 military use;
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1 (3) North Korean military stocks have been ex2 pended to respond to unmet food aid needs in North

3 Korea;

4 (4) the United Nations World Food Program or

5 other private voluntary organizations registered with

6 the United States Agency for International Develop7 ment have been permitted to take and have taken all

8 reasonable steps to ensure that food deliveries will

9 not be diverted from intended recipients, including

10 unannounced, unscheduled, and unsupervised visits

11 to recipient institutions and farmers’ markets by Ko12 rean-speaking monitors affiliated with the United

13 Nations World Food Program or other private vol14 untary organizations registered with the United

15 States Agency for International Development; and

16 (5) the United States Government has directly,

17 and indirectly through appropriate international or18 ganizations, encouraged North Korea to initiate fun19 damental structural reforms of its agricultural sec20 tor.

21 SEC. 5. RESTRICTIONS ON NUCLEAR COOPERATION WITH

22 NORTH KOREA.

23 (a) IN GENERAL.—Notwithstanding any other provi24 sion of law or any international agreement, no agreement

25 for cooperation (as defined in sec. 11 b. of the Atomic
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1 Energy Act of 1954 (42 U.S.C. 2014 b.)) between the

2 United States and North Korea may become effective, no

3 license may be issued for export directly or indirectly to

4 North Korea of any nuclear material, facilities, compo5 nents, or other goods, services, or technology that would

6 be subject to such agreement, and no approval may be

7 given for the transfer or retransfer directly or indirectly

8 to North Korea of any nuclear material, facilities, compo9 nents, or other goods, services, or technology that would

10 be subject to such agreement, until—

11 (1) the President determines and reports to the

12 Committee on International Relations of the House

13 of Representatives and the Committee on Foreign

14 Relations of the Senate that—

15 (A) North Korea has come into full compli16 ance with its safeguards agreement with the

17 IAEA (INFCIRC/403), and has taken all steps

18 that have been deemed necessary by the IAEA

19 in this regard;

20 (B) North Korea has permitted the IAEA

21 full access to all additional sites and all infor22 mation (including historical records) deemed

23 necessary by the IAEA to verify the accuracy

24 and completeness of North Korea’s initial re-
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1 port of May 4, 1992, to the IAEA on all nu2 clear sites and material in North Korea;

3 (C) North Korea is in full compliance with

4 its obligations under the Agreed Framework;

5 (D) North Korea is in full compliance with

6 its obligations under the Joint Declaration on

7 Denuclearization;

8 (E) North Korea does not have the capa9 bility to enrich uranium, and is not seeking to

10 acquire or develop such capability, or any addi11 tional capability to reprocess spent nuclear fuel;

12 (F) North Korea has terminated its nu13 clear weapons program, including all efforts to

14 acquire, develop, test, produce, or deploy such

15 weapons; and

16 (G) the transfer to North Korea of key nu17 clear components, under the proposed agree18 ment for cooperation with North Korea and in

19 accordance with the Agreed Framework, is in

20 the national interest of the United States; and

21 (2) there is enacted a joint resolution stating in

22 substance that the Congress concurs in the deter23 mination and report of the President submitted pur24 suant to paragraph (1).
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1 (b) CONSTRUCTION.—The restrictions contained in

2 subsection (a) shall apply in addition to all other applica3 ble procedures, requirements, and restrictions contained in

4 the Atomic Energy Act of 1954 and other laws.

5 SEC. 6. CONTINUATION OF RESTRICTIONS ON TRANS6 ACTIONS WITH NORTH KOREA PENDING

7 PROGRESS ON BALLISTIC MISSILE ISSUES.

8 (a) CONTINUATION OF RESTRICTIONS.—

9 (1) CONTINUATION OF RESTRICTIONS.—All

10 prohibitions and restrictions on transactions and ac11 tivities with North Korea imposed under section 5(b)

12 of the Trading with the Enemy Act (as in effect on

13 July 1, 1977), as set forth in part 500 of title 31,

14 Code of Federal Regulations as in effect on April 1,

15 1999, shall remain in effect until the President sub16 mits the determination and report described in sub17 section (b), and—

18 (A) the authority of section 501.803 of

19 title 31, Code of Federal Regulations (relating

20 to the authority to modify chapter V of title 31,

21 Code of Federal Regulations) and other provi22 sions of law may not be used to modify such

23 prohibitions and restrictions, as in effect on

24 such date, and
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1 (B) no prohibition or restriction on trans2 actions or activities set forth in subpart B of

3 part 500 of title 31, Code of Federal Regula4 tions, as in effect on April 1, 1999, may be au5 thorized after that date, other than those trans6 actions and activities specifically authorized

7 under subpart E of such part,

8 until such determination and report are so sub9 mitted.

10 (2) REVOCATION OF PRIOR MODIFICATIONS AND

11 AUTHORIZATIONS.—Any modification otherwise pro12 hibited under paragraph (1)(A) that is made after

13 April 1, 1999, and before the date of enactment of

14 this Act, and any authorization granted after April

15 1, 1999, and before the date of enactment of this

16 Act, for a transaction or activity otherwise prohib17 ited under paragraph (1)(B), shall be revoked as of

18 such date of enactment.

19 (b) TERMINATION OF RESTRICTIONS.—The deter20 mination and report referred to in subsection (a) is a de21 termination by the President, reported to the Committee

22 on International Relations of the House of Representa23 tives and the Committee on Foreign Relations of the Sen24 ate, that—
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1 (1) North Korea has agreed to institute a total

2 ban on exports of missiles, missile components, and

3 missile technology;

4 (2) there is no credible evidence that North

5 Korea has, during the 1-year period prior to the

6 date of the President’s determination, exported mis7 siles, missile components, or missile technology;

8 (3) North Korea has terminated its long-range

9 missile program, including all efforts to acquire, de10 velop, test, produce, or deploy such missiles;

11 (4) North Korea is in full compliance with its

12 obligations under the Agreed Framework;

13 (5) North Korea is in full compliance with its

14 obligations under the Joint Declaration on

15 Denuclearization;

16 (6) North Korea does not have the capability to

17 enrich uranium, and is not seeking to acquire or de18 velop such capability, or any additional capability to

19 reprocess spent nuclear fuel; and

20 (7) North Korea has terminated its nuclear

21 weapons program, including all efforts to acquire,

22 develop, test, produce, or deploy such weapons; and

23 (c) REIMPOSITION OF RESTRICTIONS.—Should the

24 President become aware of information establishing that

25 North Korea—
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1 (1) has exported missiles, missile components,

2 or missile technology,

3 (2) is seeking to acquire, develop, test, produce,

4 or deploy long-range missiles,

5 (3) is not in full compliance with its obligations

6 under the Agreed Framework or the Joint Declara7 tion on Denuclearization,

8 (4) has the capability to enrich uranium or is

9 seeking to acquire or develop such capability, or ad10 ditional capability to reprocess spent nuclear fuel, or

11 (5) is seeking to acquire, develop, test, produce,

12 or deploy nuclear weapons,

13 then the requirements of subsection (a) shall be reimposed

14 notwithstanding any determination and report submitted

15 under subsection (b).

16 SEC. 7. BALLISTIC MISSILE DEFENSE IN THE ASIA-PACIFIC

17 REGION.

18 (a) POLICY OF THE UNITED STATES.—It shall be the

19 policy of the United States to work with friendly govern20 ments in the Asia-Pacific region to develop and deploy bal21 listic missile defenses capable of countering ballistic mis22 sile threats in the region.

23 (b) JOINT EARLY WARNING SYSTEM.—Of the funds

24 appropriated to carry out the provisions of section 23 of

25 the Arms Export Control Act for fiscal year 2000, up to
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1 $10,000,000 is authorized to be made available to support

2 the establishment of a joint early warning system in the

3 Asia-Pacific region. Such system shall have as its purpose

4 the continuous sharing of information on missile launches

5 detected by the governments participating in the system,

6 and may include the establishment by such governments

7 of a joint early warning center.

8 SEC. 8. REFUGEES FROM NORTH KOREA.

9 (a) POLICY OF THE UNITED STATES.—It shall be the

10 policy of the United States to oppose the involuntary re11 turn of North Korean refugees to North Korea, to support

12 the provision of international assistance to such refugees

13 in the People’s Republic of China and other countries of

14 asylum, and to facilitate the resettlement of such refugees

15 in South Korea and other neighboring countries.

16 (b) AUTHORIZATION OF ASSISTANCE FOR REFUGEES

17 FROM NORTH KOREA.—Of the funds appropriated for

18 ‘‘Migration and Refugee Assistance’’ for fiscal year 2000,

19 up to $30,000,000 is authorized to be made available for

20 assistance to North Korean refugees in the People’s Re21 public of China and other countries of asylum, and to sup22 port the resettlement of such refugees in South Korea and

23 other neighboring countries.
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1 SEC. 9. REPORT TO CONGRESS ON THE AGREED FRAME2 WORK.

3 Not later than 90 days after the date of enactment

4 of this Act, the President shall submit to the Committees

5 on International Relations and Appropriations of the

6 House of Representatives and the Committees on Foreign

7 Relations and Appropriations of the Senate a report on

8 the following:

9 (1) The projected total cost of the two 1000

10 MW(e) light water nuclear reactors that are to be

11 constructed in North Korea pursuant to the Agreed

12 Framework, the portion of this total cost that South

13 Korea and Japan have committed to pay, the poten14 tial sources of funding for the portion of this total

15 cost that South Korea and Japan have not com16 mitted to pay, and the maximum portion of this

17 total cost, if any, that the President anticipates will

18 be paid by the United States.

19 (2) Of the projected total cost identified in re20 sponse to paragraph (1), the portion of this cost

21 that North Korea will be obligated to repay, the like22 ly terms upon which such repayment will be re23 quired, and the possible sources of revenue from

24 which such repayment will be made.

25 (3) The degree to which North Korea’s elec26 trical power distribution network will have to be up-
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1 graded in order to distribute the electrical power

2 that will be generated by the two 1000 MW(e) light

3 water nuclear reactors that are to be constructed in

4 North Korea pursuant to the Agreed Framework,

5 the projected cost of such upgrades, and the possible

6 sources of funding for such upgrades.

7 (4) The advantages to North Korea of building

8 non-nuclear power plants rather than light water nu9 clear power plants, including—

10 (A) the cost saving that could be realized

11 by building non-nuclear electric power plants

12 with a total generation capacity of 2000 MW(e)

13 rather than two light water nuclear power

14 plants with that same capacity;

15 (B) the projected date by which non-nu16 clear electric power plants with a total genera17 tion capacity of 2000 MW(e) could be com18 pleted, compared with the projected date by

19 which two light water nuclear power plants with

20 that same capacity will be completed; and

21 (C) the advantages for electric power dis22 tribution that could be realized by building a

23 number of non-nuclear electric power plants

24 with a total generation capacity of 2000 MW(e)
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1 rather than two light water nuclear power

2 plants with that same capacity.

3 SEC. 10. DEFINITIONS.

4 In this Act:

5 (1) AGREED FRAMEWORK.—The term ‘‘Agreed

6 Framework’’ means the ‘‘Agreed Framework Be7 tween the United States of America and the Demo8 cratic People’s Republic of Korea’’, signed in Geneva

9 on October 21, 1994, and the Confidential Minute to

10 that Agreement.

11 (2) IAEA.—The term ‘‘IAEA’’ means the

12 International Atomic Energy Agency.

13 (3) KEDO.—The term ‘‘KEDO’’ means the

14 Korean Peninsula Energy Development Organiza15 tion.

16 (4) NORTH KOREA.—The term ‘‘North Korea’’

17 means the Democratic People’s Republic of Korea.

18 (5) LONG RANGE MISSILE.—The term ‘‘long

19 range missile’’ means a missile with a range of 1000

20 kilometers or more.

21 (6) JOINT DECLARATION ON

22 DENUCLEARIZATION.—The term ‘‘Joint Declaration

23 on Denuclearization’’ means the Joint Declaration

24 on the Denuclearization of the Korean Peninsula,
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1 signed by the Republic of Korea and the Democratic

2 People’s Republic of Korea on January 1, 1992.

Æ