II

105TH CONGRESS

1ST SESSION S. 1303

To encourage the integration of the People’s Republic of China into the

world economy, ensure United States trade interests, and establish a

strategic working relationship with the People’s Republic of China as

a responsible member of the world community.

IN THE SENATE OF THE UNITED STATES

OCTOBER 21, 1997

Mr. LIEBERMAN (for himself, Mr. HAGEL, Mr. KERREY, and Mr. MURKOWSKI) introduced the following bill; which was read twice and referred to

the Committee on Finance

A BILL

To encourage the integration of the People’s Republic of

China into the world economy, ensure United States

trade interests, and establish a strategic working relationship with the People’s Republic of China as a responsible member of the world community.

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; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘United States-China Relations Act of 1997’’.

6 (b) TABLE OF CONTENTS.—The table of contents for

7 this Act is as follows:
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Sec. 1. Short title; table of contents.

Sec. 2. Declaration of policy.

Sec. 3. Definitions.

TITLE I—ECONOMIC NORMALIZATION

Subtitle A—General Provisions

Sec. 101. Congressional findings.

Sec. 102. Statements of policy.

Sec. 103. Reports to Congress.

Sec. 104. Bilateral economic relations.

Sec. 105. Multilateral economic relations.

Sec. 106. Use of funds for commercial and consular presence.

Subtitle B—United States-China Trade and Investment Commission

Sec. 111. United States-China Trade and Investment Commission.

Sec. 112. Study and report.

Sec. 113. Powers of the Commission.

Sec. 114. Staff and consultants.

Sec. 115. Termination.

Sec. 116. Investment treatment for United States business.

TITLE II—STRATEGIC RELATIONS

Sec. 201. Congressional findings.

Sec. 202. Statements of policy.

Sec. 203. Reports to Congress.

Sec. 204. Bilateral strategic relations.

Sec. 205. Multilateral strategic relations.

Sec. 206. Enforcement of the Iran-Iraq Non-Proliferation Act.

TITLE III—HUMAN RIGHTS

Subtitle A—General Provisions

Sec. 301. Congressional findings.

Sec. 302. Statement of policy.

Sec. 303. Radio Free Asia; National Endowment for Democracy.

Sec. 304. Multilateral human rights.

Subtitle B—Human Relations Commission

Sec. 311. Human Relations Commission.

Sec. 312. Functions of the Commission.

Sec. 313. Staff.

Sec. 314. Termination.

1 SEC. 2. DECLARATION OF POLICY.

2 It is the policy of the United States to—
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1 (1) encourage the integration of the People’s

2 Republic of China into the global economy and com3 munity of nations;

4 (2) craft an economic, political, and strategic

5 relationship with the People’s Republic of China

6 which builds mutual trust and encourages

7 transparency;

8 (3) cooperate with the People’s Republic of

9 China on regional and global political and strategic

10 issues, and to encourage the constructive inter11 dependence of the People’s Republic of China in the

12 Asia Pacific region;

13 (4) recognize the sovereignty of the People’s

14 Republic of China, and oppose any unilateral change

15 in the status quo of ‘‘one China policy’’, especially

16 with respect to the Republic of China on Taiwan;

17 (5) continue a close relationship with the Spe18 cial Administrative Region of Hong Kong; and

19 (6) enforce the Hong Kong Policy Act and any

20 other provision that relates to the protection of civil

21 liberties and the rule of law in Hong Kong.

22 SEC. 3. DEFINITIONS.

23 In this Act:
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1 (1) TRADE REPRESENTATIVE.—The term

2 ‘‘Trade Representative’’ means the United States

3 Trade Representative.

4 (2) WORLD TRADE ORGANIZATION.—The term

5 ‘‘World Trade Organization’’ means the organization

6 established pursuant to the WTO Agreement.

7 (3) WTO AGREEMENT.—The term ‘‘WTO

8 Agreement’’ means the Agreement Establishing The

9 World Trade Organization entered into on April 15,

10 1994.

11 TITLE I—ECONOMIC

12 NORMALIZATION

13 Subtitle A—General Provisions

14 SEC. 101. CONGRESSIONAL FINDINGS.

15 Congress makes the following findings:

16 (1) The People’s Republic of China is the

17 world’s tenth largest trading nation and the United

18 States’ fifth largest trading partner. United States

19 exports to the People’s Republic of China have quad20 rupled over the past decade. At least 170,000 Amer21 icans owe their jobs to United States exports to the

22 People’s Republic of China. Jobs related to exported

23 goods, on average, pay 13 to 16 percent more than

24 nonexport related jobs.
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1 (2) The United States is the People’s Republic

2 of China’s largest export market. United States im3 ports from the People’s Republic of China were

4 nearly $51,500,000,000 in 1996 (or nearly 25 per5 cent of the exports of the People’s Republic of

6 China). By contrast, United States exports of goods

7 to the People’s Republic of China stood at only

8 $12,000,000,000. While the large trade deficit with

9 the People’s Republic of China is the result of many

10 factors, the People’s Republic of China’s multiple,

11 overlapping barriers to trade and investments are a

12 serious concern.

13 (3) In the coming decade, the rapid economic

14 expansion of the People’s Republic of China will

15 exert a powerful influence on the global economy. In

16 order to be constructive, the emergence of the Peo17 ple’s Republic of China as an economic power should

18 be compatible with the existing multilateral economic

19 regime.

20 (4) Since the bilateral Memorandum of Under21 standing between the United States and the People’s

22 Republic of China signed in October 1992, the Peo23 ple’s Republic of China has eliminated import re24 strictions on more than 1,000 tariff categories and
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1 opened its market to computers, heavy machinery,

2 and pharmaceutical products.

3 (5) However, the People’s Republic of China

4 still maintains many barriers to the sale of foreign

5 products and United States firms still do not have

6 access comparable to that which the People’s Repub7 lic of China enjoys in the United States. Sectors

8 such as agriculture, telecommunications, insurance,

9 distribution, audio-visual, advertising, and mainte10 nance and repair need to be opened to international

11 trade.

12 (6) Since 1995, the People’s Republic of China

13 has made significant progress in concluding agree14 ments in the enforcement of intellectual property

15 rights.

16 (7) Despite significant improvements in en17 forcement, serious problems still remain. Piracy of

18 computer software remains at high levels. While

19 market access for copyrighted products has im20 proved, further improvement is required for legiti21 mate products to be available to meet market

22 demand.

23 SEC. 102. STATEMENTS OF POLICY.

24 It is the policy of the United States—
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1 (1) to encourage a fair and equitable economic

2 relationship that ensures equal market access be3 tween the United States and the People’s Republic

4 of China;

5 (2) to support the accession of the People’s Re6 public of China to the World Trade Organization on

7 commercially viable terms, which include commit8 ments on opening up the agricultural market of the

9 People’s Republic of China, concessions on trading

10 rights, lower tariffs, access to distribution networks,

11 and elimination of import inhibiting standards;

12 (3) for importers of goods or services to affirm

13 that such products or services were not manufac14 tured or procured in a manner inconsistent with

15 United States law or otherwise incompatible with the

16 values of the United States; and

17 (4) for United States persons conducting busi18 ness in the People’s Republic of China to refrain

19 from using oppressive instrumentalities of the state

20 to oppose workers’ efforts to organize.

21 SEC. 103. REPORTS TO CONGRESS.

22 (a) IN GENERAL.—Not later than 180 days after the

23 date of enactment of this Act, and annually thereafter,

24 the Trade Representative shall, in consultation with the

25 International Trade Commission and the Department of
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1 Commerce, prepare and submit to Congress a study show2 ing the economic benefits that existing bilateral trade

3 agreements between the United States and the People’s

4 Republic of China have on United States employment, bal5 ance of trade, and international competitiveness.

6 (b) MILITARY ACTIVITIES.—

7 (1) IN GENERAL.—The Secretary of State, in

8 consultation with the Secretary of Defense, the Sec9 retary of Commerce, and the head of any other ap10 propriate intelligence agencies, shall, not later than

11 180 days after the date of enactment of this Act,

12 and annually thereafter, prepare and submit to Con13 gress a report on the commercial activities of the

14 People’s Liberation Army in the United States and

15 the People’s Republic of China. The report shall

16 highlight the activities that provide off-budget reve17 nue for military modernization.

18 (2) CONFIDENTIALITY.—The Secretary of De19 fense, the Secretary of Commerce, and the head of

20 any intelligence agency may separately submit infor21 mation regarding the report to Congress in con22 fidence if such Secretary or agency head considers

23 confidentiality appropriate.
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1 SEC. 104. BILATERAL ECONOMIC RELATIONS.

2 (a) INVESTMENT TREATY.—Not later than 180 days

3 after the date of enactment of this Act, the Trade Rep4 resentative shall assess the feasibility of entering into a

5 bilateral investment treaty with the People’s Republic of

6 China and shall advise Congress of the results of the as7 sessment.

8 (b) TAX TREATY.—Not later than 180 days after the

9 date of enactment of this Act, the Secretary of the Treas10 ury shall assess the feasibility of entering into a bilateral

11 tax treaty with the People’s Republic of China and shall

12 advise Congress of the results of the assessment.

13 (c) REPORT ON JOINT COMMISSIONS.—

14 (1) REVIEW.—Not later than 180 days after

15 the date of enactment of this Act, and annually

16 thereafter, the President shall review the functions

17 and objectives of each United States-China Joint

18 Commission and shall submit for congressional re19 view a program plan that identifies the objectives of

20 each Commission and the resources required to

21 achieve those objectives.

22 (2) JOINT COMMISSIONS.—For purposes of this

23 subsection, the term ‘‘United States-China Joint

24 Commission’’ means—

25 (A) the United States-China Joint Com26 mission on Commerce and Trade,
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1 (B) the United States-China Joint

2 Economic Commission, and

3 (C) the United States-China Joint Com4 mission on Science and Technology.

5 SEC. 105. MULTILATERAL ECONOMIC RELATIONS.

6 (a) STATEMENT OF PURPOSE.—It is the purpose of

7 this section—

8 (1) to authorize the President of the United

9 States to raise tariffs on imports from the People’s

10 Republic of China to tariff levels in effect on Decem11 ber 31, 1994, if the President determines, upon the

12 expiration of the 1979 United States bilateral agree13 ment with the People’s Republic of China, that the

14 People’s Republic of China is either denying ade15 quate trade benefits to the United States or not tak16 ing steps to become a full member of the World

17 Trade Organization;

18 (2) to provide a significant incentive for the

19 People’s Republic of China to gain admission to the

20 World Trade Organization by eliminating the annual

21 review of China’s trade status after it commits to a

22 commercially acceptable protocol and is admitted to

23 the World Trade Organization; and

24 (3) therefore to enhance the ability of the Presi25 dent of the United States to negotiate a commer-
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1 cially acceptable World Trade Organization protocol

2 with the People’s Republic of China.

3 (b) SNAP-BACK MECHANISM.—

4 (1) DETERMINATION WITH RESPECT TO THE

5 PEOPLE’S REPUBLIC OF CHINA.—Upon the expira6 tion of the 1979 United States bilateral agreement

7 with the People’s Republic of China, the President

8 shall, after consulting with the appropriate congres9 sional committees, determine whether or not the

10 People’s Republic of China is—

11 (A) according adequate trade benefits to

12 the United States, including substantially equal

13 competitive opportunities for the commerce of

14 the United States; and

15 (B) taking adequate steps or making sig16 nificant proposals to become a WTO member.

17 (2) SUBMISSION OF FINDINGS.—Not later than

18 180 days after the expiration of the 1979 United

19 States bilateral agreement with the People’s Repub20 lic of China, the President shall submit to the appro21 priate congressional committees a report setting

22 forth his determinations under subparagraphs (A)

23 and (B) of paragraph (1), with a rationale for each

24 determination.

25 (3) TARIFF INCREASE.—
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1 (A) IMPOSITION OF INCREASE.—If the

2 President determines either—

3 (i) under subparagraph (A) of para4 graph (1) that the People’s Republic of

5 China is not according adequate trade ben6 efits to the United States, or

7 (ii) under subparagraph (B) of para8 graph (1) that the People’s Republic of

9 China is not taking adequate steps or mak10 ing significant proposals to become a WTO

11 member,

12 then the President shall proclaim, within 180

13 days after the date of that determination, an

14 increase in the rate of duty with respect to 1

15 or more products of that country to not more

16 than the column 1 rate of duty under the Har17 monized Tariff Schedule of the United States

18 that applied to the article or articles on Decem19 ber 31, 1994.

20 (B) TERMINATION OF INCREASE.—The

21 President shall terminate any increase in the

22 rate of duty imposed under subparagraph (A)

23 on the earlier of—
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1 (i) the date on which the People’s Re2 public of China becomes a WTO member;

3 or

4 (ii) the date on which the President

5 proclaims that—

6 (I) the People’s Republic of

7 China is according adequate trade

8 benefits to the United States, includ9 ing substantially equal competitive op10 portunities for the commerce of the

11 United States; and

12 (II) the People’s Republic of

13 China is taking adequate steps or

14 making significant proposals to be15 come a WTO member.

16 (C) MODIFICATION OF TARIFF.—The

17 President may modify any increase in the rate

18 of duty imposed under subparagraph (A) if the

19 President notifies the appropriate congressional

20 committees of the modification and the reasons

21 therefor, except that—

22 (i) the modification may not result in

23 a rate of duty higher than that permitted

24 under subparagraph (A); and
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1 (ii) the authority of this subparagraph

2 may not be used to terminate an increase

3 in the rate of duty imposed under subpara4 graph (A).

5 (c) ACCESSION TO THE WORLD TRADE ORGANIZA6 TION.—On the date on which the People’s Republic of

7 China becomes a WTO member, the provisions of title IV

8 of the Trade Act of 1974 shall cease to apply to that coun9 try, and nondiscriminatory treatment shall apply to the

10 products of that country.

11 (d) PARTICIPATION IN OECD.—The President

12 shall—

13 (1) develop criteria for supporting the People’s

14 Republic of China’s participation in the Organiza15 tion for Economic Cooperation and Development and

16 the G–7 meetings; and

17 (2) when appropriate, initiate discussions with

18 other members of the Organization for Economic

19 Cooperation and Development and the G–7 regard20 ing the People’s Republic of China’s participation.

21 (e) DEFINITION.—As used in this section, the term

22 ‘‘WTO member’’ has the meaning given that term in sec23 tion 2(10) of the Uruguay Round Agreements Act (19

24 U.S.C. 3501(10)).
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1 SEC. 106. USE OF FUNDS FOR COMMERCIAL AND

2 CONSULAR PRESENCE.

3 Of the amounts authorized to be appropriated to the

4 Department of State under the appropriations account en5 titled ‘‘Administration of Foreign Affairs’’ and of the

6 amounts appropriated to the Department of Commerce for

7 the United States and Foreign Commercial Service,

8 $25,000,000 for fiscal year 1999, and $75,000,000 for fis9 cal year 2000, may be used to strengthen and expand the

10 United States consular and commercial presence in the

11 People’s Republic of China to additional cities. The Presi12 dent, through the Director of the Office of Management

13 and Budget, shall determine the allocation of funds to be

14 used in any fiscal year to carry out the provisions of this

15 section.

16 Subtitle B—United States-China

17 Trade and Investment Commission

18 SEC. 111. UNITED STATES-CHINA TRADE AND INVESTMENT

19 COMMISSION.

20 (a) IN GENERAL.—There is established a United

21 States-China Trade and Investment Commission (referred

22 to in this title as the ‘‘Commission’’).

23 (b) MEMBERSHIP.—

24 (1) COMPOSITION.—The Commission shall be

25 bipartisan and composed of 17 members, includ26 ing—
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1 (A) 3 individuals appointed by the Presi2 dent from the executive branch of the

3 government;

4 (B) 2 individuals appointed by the Presi5 dent pro tempore of the Senate, upon the rec6 ommendation of the majority and minority lead7 ers of the Senate;

8 (C) 2 individuals appointed by the Speaker

9 of the House of Representatives, in consultation

10 with the minority leader of the House of

11 Representatives;

12 (D) 7 individuals from private business ap13 pointed by the Secretary of Commerce; and

14 (E) 3 individuals from nonprofit organiza15 tions appointed by the Secretary of Commerce.

16 (2) APPOINTMENT.—The members of the Com17 mission shall be appointed not later than 6 months

18 after the date of enactment of this Act.

19 (c) CHAIRPERSON.—The Secretary of Commerce

20 shall select a Chairperson from among the private business

21 members.

22 (d) TERM OF OFFICE.—Members shall be appointed

23 for the life of the Commission.

24 (e) VACANCIES.—Any vacancy occurring in the mem25 bership of the Commission shall be filled in the same man-
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1 ner as the original appointment for the position being va2 cated. The vacancy shall not affect the power of the re3 maining members to execute the duties of the Commission.

4 (f) COMPENSATION AND EXPENSES.—

5 (1) COMPENSATION.—Each member of the

6 Commission who is not an employee of the Federal

7 Government shall receive compensation at the daily

8 equivalent of the rate specified for level V of the Ex9 ecutive Schedule under section 5316 of title 5, Unit10 ed States Code, for each day the member is engaged

11 in the performance of duties for the Commission, in12 cluding attendance at meetings and conferences of

13 the Commission, and travel to conduct the duties of

14 the Commission.

15 (2) TRAVEL EXPENSES.—Each member of the

16 Commission shall receive travel expenses, including

17 per diem in lieu of subsistence, at rates authorized

18 for employees of agencies under subchapter I of

19 chapter 57 of title 5, United States Code, for each

20 day the member is engaged in the performance of

21 duties away from the home or regular place of busi22 ness of the member.

23 SEC. 112. STUDY AND REPORT.

24 (a) STUDY.—The Commission shall conduct a study

25 of—
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1 (1) business practices employed by United

2 States and foreign persons conducting business in

3 the People’s Republic of China;

4 (2) human rights, labor, and environmental

5 conditions in each province of the People’s Republic

6 of China based on criteria set forth in title IV of the

7 Foreign Assistance Act of 1961 (22 U.S.C. 2191 et

8 seq.) relating to insurance, financing, guarantees,

9 and reinsurance by the Overseas Private Investment

10 Corporation;

11 (3) other circumstances associated with the de12 velopment of rule of law and civil society in the Peo13 ple’s Republic of China;

14 (4) opportunities for bilateral cooperation for

15 improving ecosystem management and pollution con16 trol, and for integrating policies that have environ17 mental impact in the People’s Republic of China;

18 and

19 (5) opportunities for developing voluntary envi20 ronmental guidelines for industrial suppliers located

21 in the People’s Republic of China, including the im22 plementation of ISO 14000 environmental manage23 ment standards of the International Organization of

24 Standards.
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1 (b) REPORT.—Not later than 12 months after the

2 date of enactment of this Act, and annually thereafter,

3 the Commission shall prepare and submit to the President

4 and the appropriate committees of Congress a written re5 port containing—

6 (1) the findings and conclusions of the Commis7 sion resulting from the study conducted under sub8 section (a);

9 (2) the recommendations of the Commission,

10 based on the findings and conclusions described in

11 paragraph (1), for—

12 (A) improving opportunities for United

13 States business in the People’s Republic of

14 China; and

15 (B) developing bilateral cooperation be16 tween the United States and the People’s Re17 public of China relating to labor and environ18 ment; and

19 (3) a list of provinces in the People’s Republic

20 of China that meet the criteria of the Overseas Pri21 vate Investment Corporation for insurance, financ22 ing, guarantees, and reinsurance described in sub23 section (a)(2).

24 (c) APPROPRIATE COMMITTEES.—For purposes of

25 this section, the term ‘‘appropriate committees’’ means the
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1 Committees on Finance and Foreign Relations of the Sen2 ate and the Committees on Ways and Means and Inter3 national Relations of the House of Representatives.

4 SEC. 113. POWERS OF THE COMMISSION.

5 (a) IN GENERAL.—The Commission is authorized

6 to—

7 (1) hold such hearings and sit and act at such

8 times;

9 (2) take such testimony;

10 (3) have such printing and binding done;

11 (4) enter into such contracts and other

12 arrangements;

13 (5) make such expenditures; and

14 (6) take such other actions;

15 as the Commission may determine to be necessary to carry

16 out the duties of the Commission.

17 (b) OBTAINING INFORMATION FROM FEDERAL

18 AGENCIES.—The Commission may secure directly from

19 any Federal agency such information as the Commission

20 may require to carry out its duties.

21 (c) GIFTS AND DONATIONS.—The Commission may

22 accept, use, and dispose of gifts or donations of property

23 in order to carry out the duties of the Commission.
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1 (d) USE OF MAIL.—The Commission may use the

2 United States mails in the same manner and under the

3 same conditions as Federal agencies.

4 SEC. 114. STAFF AND CONSULTANTS.

5 (a) STAFF.—

6 (1) APPOINTMENT AND COMPENSATION.—The

7 Commission may appoint and determine the com8 pensation of such staff as the Commission deter9 mines to be necessary to carry out the duties of the

10 Commission.

11 (2) LIMITATIONS.—The rate of compensation

12 for each staff member shall not exceed the daily

13 equivalent of the rate specified for level V of the Ex14 ecutive Schedule under section 5316 of title 5, Unit15 ed States Code, for each day the staff member is en16 gaged in the performance of duties for the Commis17 sion. The Commission may otherwise appoint and

18 determine the compensation of staff without regard

19 to the provisions of title 5, United States Code, that

20 govern appointments in the competitive service, and

21 the provisions of chapter 51 and subchapter III of

22 chapter 53 of title 5, United States Code, that relate

23 to classification and General Schedule pay rates.

24 (b) EXPERTS AND CONSULTANTS.—The Chairperson

25 of the Commission may obtain such temporary and inter-
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1 mittent services of experts and consultants and com2 pensate the experts and consultants in accordance with

3 section 3109(b) of title 5, United States Code, as the

4 Commission determines to be necessary to carry out the

5 duties of the Commission.

6 (c) DETAIL OF FEDERAL EMPLOYEES.—On the re7 quest of the Chairperson of the Commission, the head of

8 any Federal agency shall detail, without reimbursement,

9 any of the personnel of the agency to the Commission to

10 assist the Commission in carrying out its duties. Any de11 tail shall not interrupt or otherwise affect the civil service

12 status or privileges of the Federal employee.

13 (d) TECHNICAL ASSISTANCE.—On the request of the

14 Chairperson of the Commission, the head of a Federal

15 agency shall provide such technical assistance to the Com16 mission as the Commission determines to be necessary to

17 carry out its duties.

18 SEC. 115. TERMINATION.

19 The Commission shall terminate on the date that is

20 2 years after the date of enactment of this Act.

21 SEC. 116. INVESTMENT TREATMENT FOR UNITED STATES

22 BUSINESS.

23 (a) IN GENERAL.—The Export-Import Bank, the

24 Overseas Private Investment Corporation, and other Unit25 ed States agencies shall take into consideration the study
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1 and report conducted under this subtitle in funding any

2 transaction with the People’s Republic of China.

3 (b) AMENDMENT TO EXPORT-IMPORT BANK ACT.—

4 Section 2(b)(2)(D)(i) of the Export-Import Bank Act (12

5 U.S.C. 635(b)(2)(D)(i)) is amended by adding at the end

6 the following new sentence: ‘‘Subparagraph (A) shall not

7 apply to guarantees, insurance, or extensions of credit by

8 the Bank to a province of the People’s Republic of China

9 if the United States-China Trade and Investment Com10 mission determines that the province meets the criteria for

11 insurance, financing, guarantees, and reinsurance of the

12 Overseas Private Investment Corporation set forth in title

13 IV of the Foreign Assistance Act of 1961.’’.

14 (c) OVERSEAS PRIVATE INVESTMENT CORPORA15 TION.—Section 239 of the Foreign Assistance Act of 1961

16 (22 U.S.C 2199) is amended by adding at the end the

17 following new subsection:

18 ‘‘(l) Notwithstanding any other provision of law, the

19 Corporation may insure, reinsure, guarantee, or finance

20 a project in the People’s Republic of China if the United

21 States-China Trade and Investment Commission deter22 mines that the province in which such project is located

23 meets the criteria for insurance, financing, guarantees,

24 and reinsurance set forth in this title.’’.
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1 TITLE II—STRATEGIC

2 RELATIONS

3 SEC. 201. CONGRESSIONAL FINDINGS.

4 Congress makes the following findings:

5 (1) The United States and the People’s Repub6 lic of China share mutual security interests in the

7 Asia Pacific region (including the Korean peninsula)

8 as well as other areas of the world such as the Mid9 dle East.

10 (2) While the People’s Liberation Army poses

11 no direct military threat to the United States now,

12 its sales of weapons and weapons technology to

13 sponsors of terrorism, such as Iran, endangers the

14 regional stability and global interests of the United

15 States.

16 (3) The People’s Liberation Army is engaging

17 in a military buildup and an aggressive military

18 modernization program, for undisclosed purposes. In

19 fact since 1992, military spending by the People’s

20 Republic of China has doubled.

21 (4) The People’s Liberation Army is engaging

22 in commercial activities both at home and abroad.

23 The revenues from these commercial activities are

24 used for military expenditures and obscure actual
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1 military expenditures by the People’s Republic of

2 China.

3 (5) In March 1996, the People’s Republic of

4 China demonstrated its capacity to blockade the

5 international shipping lanes of the Taiwan Strait

6 and the air space over Taiwan by the repeated

7 launches of M–9 ballistic missiles in the South

8 China Sea.

9 (6) In May 1996, Poly Technologies, a People’s

10 Liberation Army enterprise, and Norinco, a Chinese

11 civilian defense company, attempted to smuggle

12 2,000 AK–47’s into Oakland, California and offered

13 to sell to Federal undercover agents 300,000 ma14 chine guns with silencers, 66mm mortars, hand gre15 nades, and Red Parakeet surface-to-air missiles.

16 (7) The People’s Liberation Army’s buildup,

17 modernization, and economic activities may pose a

18 regional threat and a threat to broader United

19 States interests in the future unless greater efforts

20 are made to increase communication and trans21 parency of process.

22 SEC. 202. STATEMENTS OF POLICY.

23 It is the policy of the United States—

24 (1) to encourage the political and military inte25 gration of the People’s Republic of China into the
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1 Asia Pacific region and the larger global community

2 of nations;

3 (2) to maintain a strong United States presence

4 in the Asia Pacific region and to encourage coopera5 tion between the United States, the People’s Repub6 lic of China, and other nations;

7 (3) to encourage transparency in military fund8 ing in the People’s Republic of China to the greatest

9 extent possible; and

10 (4) to engage in confidence building measures

11 between the United States and the People’s Republic

12 of China in order to reduce the risk of unintended

13 conflict.

14 SEC. 203. REPORTS TO CONGRESS.

15 Not later than 180 days after the date of enactment

16 of this Act, the Secretaries of State, Defense, and Com17 merce, along with the heads of other intelligence agencies,

18 shall provide Congress with—

19 (1) a report analyzing the effectiveness of exist20 ing weapons proliferation export controls and sanc21 tions relating to the People’s Republic of China; and

22 (2) a report describing economic, political, and

23 military espionage conducted by the People’s Repub24 lic of China against the United States.
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1 The Secretaries of State, Defense, and Commerce, and the

2 head of any other intelligence agency may separately sub3 mit any information regarding the reports to Congress in

4 confidence if such Secretary or agency head considers con5 fidentiality appropriate.

6 SEC. 204. BILATERAL STRATEGIC RELATIONS.

7 (a) SENSE OF THE SENATE.—It is the sense of the

8 Senate that the President should continue and expand

9 contact and exchanges between national security personnel

10 from the United States and of the People’s Republic of

11 China.

12 (b) ENERGY BILATERAL.—The President shall take

13 steps to establish a bilateral committee with the People’s

14 Republic of China in order to begin a dialogue relating

15 to the maintenance of stability in regions where there are

16 energy resources of mutual interest to the United States

17 and the People’s Republic of China.

18 (c) FOOD BILATERAL.—The President shall take

19 steps to establish a bilateral committee with the People’s

20 Republic of China in order to begin a dialogue relating

21 to—

22 (1) common interests in the People’s Republic

23 of China’s securing a stable and adequate supply of

24 food, and
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1 (2) the interests of the United States as a sup2 plier of food to the People’s Republic of China.

3 SEC. 205. MULTILATERAL STRATEGIC RELATIONS.

4 The President shall take steps to establish a multilat5 eral risk reduction protocol with the People’s Republic of

6 China and other governments in East Asia. The protocol

7 shall provide policies and procedures that include—

8 (1) establishing a line of direct communication

9 between Washington and the People’s Republic of

10 China; and

11 (2) developing a protocol for naval encounters

12 in international waters.

13 SEC. 206. ENFORCEMENT OF THE IRAN-IRAQ NON14 PROLIFERATION ACT.

15 It is the sense of the Senate that the security and

16 stability of the Near East is threatened by any augmenta17 tion of weapons inventories by Iran and Iraq and the

18 President should vigilantly enforce the provisions of the

19 Iran-Iraq Arms Non-Proliferation Act of 1992.

20 TITLE III—HUMAN RIGHTS

21 Subtitle A—General Provisions

22 SEC. 301. CONGRESSIONAL FINDINGS.

23 Congress makes the following findings:
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1 (1) Congress concurs in the following conclu2 sions of the Department of State regarding human

3 rights in the People’s Republic of China:

4 (A) The Government of the People’s Re5 public of China has ‘‘continued to commit wide6 spread and well documented human rights

7 abuses, in violation of internationally accepted

8 norms, stemming from the authorities intoler9 ance of dissent, fear of unrest, and the absence

10 and inadequacy of laws protecting basic

11 freedoms.’’

12 (B) Nonapproved religious groups, includ13 ing Protestant and Catholic groups, experienced

14 intensified repression.

15 (C) Overall in 1996, the authorities

16 stepped up efforts to cut off expressions of pro17 test or criticism. No dissidents were known to

18 be active at year’s end.

19 (2) Despite public assurances by the People’s

20 Republic of China that it would abide by the prin21 ciples of the Universal Declaration of Human Rights

22 and despite the United Nations charter requirements

23 that all members promote respect for and observe

24 basic human rights, the Government of the People’s
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1 Republic of China continues to place severe restric2 tions on religious expression and practice.

3 SEC. 302. STATEMENT OF POLICY.

4 It is the policy of the United States—

5 (1) to encourage the People’s Republic of China

6 to adhere to internationally accepted norms for the

7 rule of law, human rights, and worker rights; and

8 (2) to develop a consistent multilateral response

9 to the record of the People’s Republic of China on

10 human rights and worker rights.

11 SEC. 303. RADIO FREE ASIA; NATIONAL ENDOWMENT FOR

12 DEMOCRACY.

13 (a) RADIO FREE ASIA.—The President shall direct

14 the Director of the United States Information Agency and

15 the Board of Broadcasting Governors to increase the

16 broadcast hours of the Voice of America and Radio Free

17 Asia to the People’s Republic of China and to broadcast

18 to the People’s Republic of China in multiple Chinese

19 dialects.

20 (b) NATIONAL ENDOWMENT FOR DEMOCRACY.—In

21 addition to such sums as are otherwise authorized to be

22 appropriated for fiscal year 1998 for grants to the Na23 tional Endowment for Democracy, there is authorized to

24 be appropriated for fiscal year 1998, $1,000,000 for

25 grants to the National Endowment for Democracy which
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1 shall be available only for purposes of programs relating

2 to the People’s Republic of China.

3 SEC. 304. MULTILATERAL HUMAN RIGHTS.

4 In the absence of significant progress in improving

5 human rights in the People’s Republic of China, the Presi6 dent shall direct the United States Permanent Represent7 ative to the United Nations to develop and implement a

8 strategy to ensure that there is a debate and discussion

9 every year on the human rights record of the People’s Re10 public of China before the United Nations Commission on

11 Human Rights.

12 Subtitle B—Human Relations

13 Commission

14 SEC. 311. HUMAN RELATIONS COMMISSION.

15 (a) IN GENERAL.—Not later than 6 months after the

16 date of enactment of this Act, the President, in consulta17 tion with the majority and minority leaders of the Senate,

18 the Speaker of the House of Representatives, and the mi19 nority leader of the House of Representatives, and appro20 priate representatives from the private sector, shall ap21 point a 12-member Human Relations Commission (re22 ferred to in this subtitle as the ‘‘Commission’’).

23 (b) MEMBERSHIP.—

24 (1) COMPOSITION.—The Commission shall be

25 composed of—
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1 (A) 4 individuals appointed from the exec2 utive branch of the government;

3 (B) 4 individuals appointed from the legis4 lative branch of the government; and

5 (C) 4 individuals from the private sector.

6 (c) CHAIRPERSON.—The Commission shall select a

7 Chairperson from among its members.

8 (d) TERM OF OFFICE.—Members shall be appointed

9 for the life of the Commission.

10 (e) VACANCIES.—Any vacancy occurring in the mem11 bership of the Commission shall be filled in the same man12 ner as the original appointment for the position being va13 cated. The vacancy shall not affect the power of the re14 maining members to execute the duties of the Commission.

15 (f) COMPENSATION AND EXPENSES.—

16 (1) COMPENSATION.—Each member of the

17 Commission who is not an employee of the Federal

18 Government shall receive compensation at the daily

19 equivalent of the rate specified for level V of the Ex20 ecutive Schedule under section 5316 of title 5, Unit21 ed States Code, for each day the member is engaged

22 in the performance of duties for the Commission, in23 cluding attendance at meetings and conferences of

24 the Commission, and travel to conduct the duties of

25 the Commission.
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1 (2) TRAVEL EXPENSES.—Each member of the

2 Commission shall receive travel expenses, including

3 per diem in lieu of subsistence, at rates authorized

4 for employees of agencies under subchapter I of

5 chapter 57 of title 5, United States Code, for each

6 day the member is engaged in the performance of

7 duties away from the home or regular place of busi8 ness of the member.

9 SEC. 312. FUNCTIONS OF THE COMMISSION.

10 (a) IN GENERAL.—The Commission shall perform

11 the following functions:

12 (1) Assess the status of human rights and

13 worker rights in the People’s Republic of China

14 based on the Universal Declaration of Human

15 Rights and internationally recognized worker rights

16 as defined in section 507(4) of the Trade Act of

17 1974.

18 (2) Work to develop a bilateral commission be19 tween the United States and the People’s Republic

20 of China on human rights and worker rights.

21 (3) Expand opportunities for the exchange be22 tween the United States and the People’s Republic

23 of China of judges, attorneys, religious leaders, cus24 toms officials, and members and staff of the execu25 tive and legislative branches of government.
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1 (4) Encourage overseas development assistance

2 programs that support the establishment of rule of

3 law and civil society in the People’s Republic of

4 China.

5 (5) Identify opportunities for multilateral action

6 on human rights and worker rights, and rejuvenate

7 initiatives in the International Labor Organization

8 relating to human rights and worker rights.

9 (b) ASSESSMENT OF HUMAN RIGHTS AND WORKER

10 RIGHTS.—

11 (1) IN GENERAL.—In assessing the status of

12 human rights and worker rights required by sub13 section (a), the Commission shall establish a Pris14 oner Information Registry that contains the infor15 mation described in paragraph (2) with respect to

16 people detained in the People’s Republic of China as

17 political prisoners, religious prisoners, and prisoners

18 of conscience.

19 (2) REGISTRY INFORMATION.—The Prisoner

20 Information Registry shall contain the following in21 formation with respect to the prisoners described in

22 paragraph (1):

23 (A) The charges against each prisoner.
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1 (B) A description of the judicial process or

2 administrative action taken with respect to each

3 prisoner.

4 (C) The length of incarceration, incidents

5 of torture, and use of forced labor with respect

6 to each prisoner.

7 (D) The physical condition and general

8 health of each prisoner.

9 (E) Any other information relating to the

10 general condition of each prisoner that the

11 Commission considers to be relevant.

12 (3) REPORT AND RECOMMENDATIONS.—

13 (A) IN GENERAL.—Not later than 1 year

14 after the first meeting of the Commission, and

15 annually thereafter, the Commission shall re16 port to Congress and the President the results

17 of the assessment conducted under this sub18 section.

19 (B) RECOMMENDATION.—If the Commis20 sion determines that the People’s Republic of

21 China is not making progress in improving the

22 status of human rights and worker rights with23 in 2 years after the date of the first meeting of

24 the Commission, the Commission shall rec25 ommend to the President that the President
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1 strengthen United States policies intended to

2 improve the status of human rights and worker

3 rights with respect to the People’s Republic of

4 China as the Commission determines to be ap5 propriate.

6 SEC. 313. STAFF.

7 (a) DETAIL OF FEDERAL EMPLOYEES.—On the re8 quest of the Chairperson of the Commission, the head of

9 any Federal agency shall detail, without reimbursement,

10 any of the personnel of the agency to the Commission to

11 assist the Commission in carrying out its duties. Any de12 tail shall not interrupt or otherwise affect the civil service

13 status or privileges of the Federal employee.

14 (b) TECHNICAL ASSISTANCE.—On the request of the

15 Chairperson of the Commission, the head of a Federal

16 agency shall provide such technical assistance to the Com17 mission as the Commission determines to be necessary to

18 carry out its duties.

19 SEC. 314. TERMINATION.

20 The Commission shall terminate on the day that is

21 3 years after the date of the Commission’s first meeting.

Æ