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[Senate Report 113-313]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 651
113th Congress                                                   Report
                                 SENATE
 2d Session                                                     113-313

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                      HONG KONG HUMAN RIGHTS AND 
                         DEMOCRACY ACT, S. 2922

                                _______
                                

               December 12, 2014.--Ordered to be printed

         Mr. Menendez, from the Committee on Foreign Relations,
                        submitted the following

                              R E P O R T

                         [To accompany S. 2922]

    The Committee on Foreign Relations, having had under 
consideration the bill S. 2922, to reinstate reporting 
requirements related to United States-Hong Kong relations, 
reports favorably thereon with an amendment and recommends that 
the bill, as amended, do pass.

                                CONTENTS

                                                                   Page

  I. Purpose..........................................................1
 II. Committee Action.................................................1
III. Discussion.......................................................2
 IV. Cost Estimate....................................................4
  V. Evaluation of Regulatory Impact..................................4
 VI. Changes in Existing Law..........................................4

                               I. Purpose

    The purpose of S. 2922 is to reinstate reporting 
requirements related to United States-Hong Kong Relations.

                          II. Committee Action

    S. 2922 was introduced by Senators Brown, Cardin, Rubio, 
Wicker, Feinstein, and Merkley on November 13, 2014. On 
December 11, 2014, the committee considered S. 2922 and ordered 
it reported, with an amendment, by a voice vote.
    The committee took the following action with regard to 
amendments:
    A Manager's Amendment was offered to the introduced bill, 
to clarify the certification requirement in the bill regarding 
the treatment of Hong Kong under United States law.

                            III. Discussion

    S. 2922 demonstrates continued congressional support for 
autonomy in Hong Kong consistent with 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 (the Joint Declaration) and 
the Basic Law of the Hong Kong Special Administrative Region of 
the People's Republic of China (the Basic Law).
    The committee views with grave concern the events leading 
up to the so-called ``Umbrella Revolution'' in Hong Kong this 
summer, and the subsequent efforts by Hong Kong and Beijing 
authorities to stifle legitimate free expression. In the 
committee's view, these actions and the underlying events are 
inconsistent with Hong Kong's autonomous status within the 
People's Republic of China.
    The committee fully supports the right of the citizens of 
Hong Kong to be able to freely choose their own 
representatives, and to peaceful assembly and freedom of 
expression, all of which are enshrined in the Hong Kong Bill of 
Rights.
    The committee believes that the roots of the protests in 
Hong Kong lie in the decision of the National People's Congress 
Standing Committee (NPCSC) in July, 2014, to prohibit the 
voters of Hong Kong from exercising their right to freely 
select nominees for the position of Chief Executive of Hong 
Kong. It is difficult to reconcile notions of universal 
suffrage with the system endorsed by the NPCSC, which will only 
allow for candidates vetted and approved by Beijing. It is 
likewise difficult to reconcile this system with the 
aspirations of the people of Hong Kong for autonomous self-
government, democratic governance, and genuine ``universal 
suffrage.''
    Hong Kong's Basic Law promises the people of Hong Kong that 
they will be able to elect their Chief Executive through 
``universal suffrage upon nomination by a broadly 
representative nominating committee in accordance with 
democratic procedures.'' Yet the NPCSC decision, which will 
allow the Election Committee of the Chief Executive to decide 
who can be placed on the ballot for election--including using 
criteria such as ``love [for] the country and love [for] Hong 
Kong,'' which do not appear in the Basic Law--effectively 
undermines the spirit of the Basic Law and the commitments that 
China made when Hong Kong returned to its control.
    These developments raise deep concerns in the committee 
about Beijing's respect for basic political and economic rights 
and the rule of law in Hong Kong, including restricting the 
right to peaceful assembly which is enshrined in the Hong Kong 
Bill of Rights, the Basic Law, and the International Covenant 
on Civil and Political Rights (ICCPR). Under Hong Kong's own 
laws, no restrictions may be placed on the exercise of this 
right other than those imposed in conformity with the law and 
that are necessary in the interests of national security or 
public safety and public order. The suppression of the right to 
peaceful assembly and the right to free expression--rights that 
are afforded the people of Hong Kong under the Basic Law, and 
which are fully consistent with the notion of ``one country, 
two systems''--is deeply troubling.
    Beijing has made numerous statements over the years about 
its commitment to the Basic Law and its intention to respect 
the promise of the Basic Law to provide the people of Hong Kong 
with a genuine say in their governance and future. Yet the 
recent decision of the NPCSC and the suppression and 
intimidation of peaceful protestors and opposition media--
decisions that have now led to the protests in the streets of 
Hong Kong--indicate that Beijing has reneged on the promises it 
made to the people of Hong Kong.
    Moreover, the committee is concerned that Beijing's 
undermining of the rule of law could potentially expand further 
and undercut the very principles that have underpinned Hong 
Kong's economic vibrancy, attractiveness for foreign 
investment, and financial independence.
    It is in that spirit that the committee believes it is 
critical that the United States reinstate the reporting 
requirements related to United States-Hong Kong relations, and 
to require ongoing certification by the Secretary of State on 
whether Hong Kong is sufficiently autonomous to justify 
separate treatment different from the People's Republic of 
China in any new laws, agreements, treaties, or arrangements 
entered into between the United States and Hong Kong after the 
date of the enactment of this Act.

Section 1

    Section 1 of S. 2922 provides the short title of the bill: 
the Hong Kong Human Rights and Democracy Act.

Section 2

    Section 2 makes findings related to the Joint Declaration, 
the Basic Law, the NPCSC's 2007 determination that Hong Kong 
could elect the Chief Executive by universal suffrage in 2017 
and the Legislative Council by universal suffrage beginning in 
2020. In addition, Section 2 makes findings regarding concerns, 
reported by numerous governmental and non-governmental 
organizations and raised as part of the ongoing protests by the 
people of Hong Kong that the People's Republic of China is not 
acting consistently with its commitments to guarantee the 
autonomy of Hong Kong. The findings also note that the United 
States enjoys close economic, social, and cultural ties with 
Hong Kong and that Hong Kong enjoys a unique status as an 
international financial center where the rule of law and the 
rights and freedoms of its citizens are protected.

Section 3

    Section 3 reaffirms the principles of the United States-
Hong Kong Policy Act of 1992, urges the Government of the 
People's Republic of China to uphold its commitments to Hong 
Kong, and supports the establishment, by 2017, of a genuine 
democratic option for freely and fairly nominating and electing 
the Chief Executive. Section 3 also supports the establishment, 
by 2020, of open and direct democratic elections for all 
members of the Hong Kong Legislative Council, and supports 
press freedom and journalistic independence in Hong Kong.

Section 4

    Section 4 reinstates the reporting requirements of the 
United States-Hong Kong Policy Act of 1992 for ten years and 
ensures that the appropriate committees in the House and Senate 
receive the report.

Section 5

    Section 5, as amended in committee, requires the Secretary 
of State to annually certify to Congress that Hong Kong is 
sufficiently autonomous to justify separate treatment different 
than China under new U.S. laws, agreements, treaties, or 
arrangements. Section 5 also provides waiver authority and a 
carve-out for programs that support democracy, human rights, or 
the rule of law.

                           IV. Cost Estimate

    In accordance with Rule XXVI, paragraph 11(a) of the 
Standing Rules of the Senate, the committee notes that the cost 
estimate provided by the Congressional Budget Office was not 
available for inclusion in this report. The estimate will be 
printed in either a supplemental report or the Congressional 
Record when it is available.

                   V. Evaluation of Regulatory Impact

    Pursuant to Rule XXVI, paragraph 11(b) of the Standing 
Rules of the Senate, the committee has determined that there is 
no regulatory impact as a result of this legislation.

                      VI. Changes in Existing Law

    In compliance with Rule XXVI, paragraph 12 of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new matter is printed in 
italic, existing law in which no change is proposed is shown in 
roman).

United States-Hong Kong Policy Act of 1992

           *       *       *       *       *       *       *

                   TITLE II--THE STATUS OF HONG KONG 
IN UNITED STATES LAW

           *       *       *       *       *       *       *

SEC. 202. PRESIDENTIAL ORDER.

    (a) Presidential Determination.--On or after July 1, 1997, 
whenever 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, the 
President may issue an Executive order suspending the 
application of section 201(a) to such law or provision of law.
    (b) Factor for Consideration.--In making a determination 
under subsection (a) with respect to the application of a law 
of the United States, or any provision thereof, to Hong Kong, 
the President should consider the terms, obligations, and 
expectations expressed in the Joint Declaration with respect to 
Hong Kong.
    (c) Publication in Federal Register.--Any Executive order 
issued under subsection (a) shall be published in the Federal 
Register and shall specify the law or provision of law affected 
by the order.
    (d) Termination of Suspension.--An Executive order issued 
under subsection (a) may be terminated by the President with 
respect to a particular law or provision of law whenever the 
President determines that Hong Kong has regained sufficient 
autonomy to justify different treatment under the law or 
provision of law in question. Notice of any such termination 
shall be published in the Federal Register.

SEC. 202A. TREATMENT OF HONG KONG UNDER UNITED STATES LAW.

    (a) Secretary of State Certification Requirement.--
          (1) In general.--Not later than 90 days after the 
        date of the enactment of the Hong Kong Human Rights and 
        Democracy Act, and annually thereafter, the Secretary 
        of State shall certify to Congress whether Hong Kong is 
        sufficiently autonomous to justify separate treatment 
        different from that accorded the People's Republic of 
        China in any new laws, agreements, treaties, or 
        arrangements entered into between the United States and 
        Hong Kong after the date of the enactment of such Act.
          (2) Factor for Consideration.--In making a 
        certification under paragraph (1), the Secretary of 
        State should consider the terms, obligations, and 
        expectations expressed in the Joint Declaration with 
        respect to Hong Kong.
          (3) Exception.--The certification under this 
        subsection shall not be required with respect to any 
        new laws, agreements, treaties, or arrangements that 
        support human rights, rule of law, or democracy in Hong 
        Kong.
    (b) Waiver Authority.--The Secretary of State may waive the 
application of subsection (a) if the Secretary--
                  (1) determines that such a waiver is in the 
                national interests of the United States; and
                  (2) on or before the date on which the waiver 
                takes effect, submits to the Committee on 
                Foreign Relations of the Senate and the 
                Committee on Foreign Affairs of the House of 
                Representatives a notice of and justification 
                for the waiver.

           *       *       *       *       *       *       *

                    TITLE III--REPORTING PROVISIONS

SEC. 301. REPORTING REQUIREMENT.

    [Not later than March 31, 1993, March 31, 1995, March 31, 
1996, March 31, 1997, March 31, 1998, March 31, 1999, March 31, 
2000, March 31, 2001, March 31, 2002, March 31, 2003, March 31, 
2004, March 31, 2005, and March 31, 2006 the Secretary of 
State] Not later than March 31, 2015, and annually thereafter 
for 10 years or until such earlier date that the Secretary of 
State certifies that Hong Kong has held free and fair elections 
for two consecutive Chief Executive and two consecutive 
Legislative Council periods, the Secretary of State shall 
transmit to the [Speaker of the House of Representatives] 
chairman of the Committee on Foreign Affairs of the House of 
Representatives and the chairman of the Committee on Foreign 
Relations of the Senate a report on conditions in Hong Kong of 
interest to the United States. This report shall cover (in the 
case of the initial report) the period since the date of 
enactment of this Act or (in the case of subsequent reports) 
the period since the most recent report pursuant to this 
section and shall describe--
          (1) significant developments in United States 
        relations with Hong Kong, including a description of 
        agreements that have entered into force between the 
        United States and Hong Kong;
          (2) other matters, including developments related to 
        the change in the exercise of sovereignty over Hong 
        Kong, affecting United States interests in Hong Kong or 
        United States relations with Hong Kong;
          (3) the nature and extent of United States-Hong Kong 
        cultural, education, scientific, and academic 
        exchanges, both official and unofficial;
          (4) the laws of the United States with respect to 
        which the application of section 201(a) has been 
        suspended pursuant to section 202(a) or with respect to 
        which such a suspension has been terminated pursuant to 
        section 202(d), and the reasons for the suspension or 
        termination, as the case may be;
          (5) treaties and other international agreements with 
        respect to which the President has made a determination 
        described in the last sentence of section 201(b), and 
        the reasons for each such determination;
          (6) significant problems in cooperation between Hong 
        Kong and the United States in the area of export 
        controls;
          (7) the development of democratic institutions in 
        Hong Kong; [and]
          (8) the nature and extent of Hong Kong's 
        participation in multilateral forums[.] ; and
          (9) matters in which Hong Kong is given separate 
        treatment under the laws of the United States from that 
        accorded to the People's Republic of China and in 
        accordance with this Act.
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