I 

118TH CONGRESS 

1ST SESSION H. R. 1330 

To provide for the loan and lease of defense articles to the Government 

of Taiwan, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 1, 2023 

Mrs. STEEL (for herself, Mr. PANETTA, Mr. CRENSHAW, Mr. VEASEY, Mr. 

WITTMAN, Ms. STRICKLAND, Mr. FALLON, Mr. GOLDEN of Maine, Mrs. 

LESKO, Mr. OWENS, Mr. MILLS, Mr. MANN, and Mr. LAMBORN) introduced the following bill; which was referred to the Committee on Foreign 

Affairs 

A BILL 

To provide for the loan and lease of defense articles to 

the Government of Taiwan, 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 ‘‘Taiwan Democracy 

5 Defense Lend-Lease Act of 2023’’. 

6 SEC. 2. LOAN AND LEASE OF DEFENSE ARTICLES TO GOV7 ERNMENT OF TAIWAN. 

8 (a) SENSE OF CONGRESS.—It is the sense of Con9 gress that steps taken to bolster the security relations beVerDate Sep 11 2014 01:45 Mar 17, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1330.IH H1330

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1 tween the United States and Taiwan should include the 

2 following: 

3 (1) The increased conduct of relevant joint mili4 tary training and bilateral exercises, or multilateral 

5 exercises, with the armed forces of Taiwan. 

6 (2) The prioritization of capacity building in 

7 Taiwan, to ensure the protection of sensitive tech8 nology lent or leased to the Government of Taiwan 

9 by the United States Government. 

10 (b) AUTHORITY TO LEND OR LEASE DEFENSE ARTI11 CLES TO GOVERNMENT OF TAIWAN.— 

12 (1) AUTHORITY.—Notwithstanding section 

13 503(b)(3) of the Foreign Assistance Act of 1961 (22 

14 U.S.C. 2311(b)(3)) or section 61 of the Arms Ex15 port Control Act (22 U.S.C. 2796), the President 

16 may lend or lease defense articles to the Government 

17 of Taiwan to assist in the bolstering of the defensive 

18 capabilities of such Government or the protection of 

19 the citizen population of Taiwan from potential ag20 gression carried out by the People’s Liberation Army 

21 of China against Taiwan (including through one or 

22 more of the means described in paragraph (2)) if, as 

23 a condition of such loan or lease, the President re24 quires— 


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1 (A) the payment by the Government of 

2 Taiwan of the cost of restoring or replacing the 

3 defense article, in the case that the defense ar4 ticle is damaged; and 

5 (B) the payment by the Government of 

6 Taiwan of an amount equal to the replacement 

7 cost (less any depreciation in the value) of the 

8 defense article, in the case that the defense ar9 ticle is lost or destroyed. 

10 (2) MEANS OF AGGRESSION BY PEOPLE’S LIB11 ERATION ARMY.—The means described in this para12 graph are the following: 

13 (A) The full or partial naval blockade of 

14 Taiwan. 

15 (B) An amphibious assault and ground in16 vasion of Taiwan. 

17 (C) A missile strike (whether conducted 

18 alone or as a part of a broader campaign). 

19 (D) Kinetic or non-kinetic operations 

20 against military targets or critical infrastruc21 ture in Taiwan. 

22 (E) A seizure, or attempted seizure, of one 

23 or more of the outlying islands controlled by 

24 Taiwan. 


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1 (3) DEFENSE SERVICES AND DEFENSE CON2 STRUCTION SERVICES.— 

3 (A) IN GENERAL.—The President may fi4 nance the procurement of defense services and 

5 design and construction services by the Govern6 ment of Taiwan in connection with a loan or 

7 lease of a defense article to such Government 

8 under paragraph (1), if, as a condition of such 

9 financing, the President requires that, not later 

10 than 12 years after the date on which the 

11 agreement with the Government of Taiwan for 

12 such financing is signed on behalf of the United 

13 States Government, the Government of Taiwan 

14 pay to the United States Government (in 

15 United States dollars) an amount equal to the 

16 sum of— 

17 (i) the value of such services; and 

18 (ii) any interest on the unpaid balance 

19 of the obligation for payment under clause 

20 (i), at a rate that, except as provided in 

21 subparagraph (B), is equivalent to the av22 erage interest rate, as of the last day of 

23 the month preceding the date on which 

24 such agreement is signed, that the United 

25 States Government pays on outstanding 


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1 marketable obligations of comparable ma2 turity. 

3 (B) EXCEPTION TO INTEREST RATE RE4 QUIREMENT.—If the President submits to Con5 gress a certification containing a determination 

6 that national security requires a lesser rate of 

7 interest than the rate calculated pursuant to 

8 subparagraph (A)(ii), a justification for such 

9 determination, and an identification of such 

10 lesser rate, the lesser rate so identified shall 

11 apply in lieu of the rate calculated pursuant to 

12 subparagraph (A)(ii). 

13 (c) DELEGATION OF AUTHORITY.—The President 

14 may delegate the authority under subsection (b) only to 

15 an official appointed by the President by and with the ad16 vice and consent of the Senate. 

17 (d) PROCEDURES FOR DELIVERY OF DEFENSE ARTI18 CLES.—Not later than 60 days after the date of the enact19 ment of this Act, the President shall establish expedited 

20 procedures for the delivery of any defense article loaned 

21 or leased to the Government of Taiwan under subsection 

22 (b) to ensure the timely delivery of the defense article to 

23 such Government. 

24 (e) REPORT ON DETERMINATION OF DEFENSE

25 NEEDS OF TAIWAN.— 


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1 (1) REPORT.—Not later than 90 days after the 

2 date of the enactment of this Act, the Secretary of 

3 Defense, in collaboration with the Commander of the 

4 United States Indo-Pacific Command, shall submit 

5 to Congress a report on the potential loan and lease 

6 of defense articles to the Government of Taiwan 

7 under subsection (b). Such report shall include the 

8 following: 

9 (A) An initial assessment of the defense 

10 articles that are appropriate for such loan or 

11 lease. 

12 (B) An assessment of any supply chain or 

13 other logistical challenges associated with the 

14 loan or lease of defense articles identified pur15 suant to subparagraph (A). 

16 (C) A discussion of expected timeframes 

17 for the provision to the Government of Taiwan 

18 of defense articles identified pursuant to sub19 paragraph (A), including— 

20 (i) expected timelines for the delivery 

21 of such defense articles; and 

22 (ii) expected timelines for the full in23 tegration of such defense articles by the 

24 military of Taiwan, such that the military 

25 of Taiwan is able to effectively use defense 


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1 articles so delivered in the event of a con2 flict with the People’s Republic of China. 

3 (D) Such other matters as the Secretary 

4 may consider appropriate. 

5 (2) FORM.—The report under paragraph (1) 

6 shall be submitted in unclassified form, but may in7 clude a classified annex. 

8 (f) DEFINITIONS.—In this section, the terms ‘‘de9 fense article’’, ‘‘defense service’’, and ‘‘design and con10 struction services’’ have the meanings given those terms 

11 in section 47 of the Arms Export Control Act (22 U.S.C. 

12 2794). 

Æ 


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