II

Calendar No. 583

106TH CONGRESS

2D SESSION S. 2645

To provide for the application of certain measures to the People’s Republic

of China in response to the illegal sale, transfer, or misuse of certain

controlled goods, services, or technology, and for other purposes.

IN THE SENATE OF THE UNITED STATES

MAY 25, 2000

Mr. THOMPSON (for himself, Mr. TORRICELLI, Ms. COLLINS, Mr. KYL, Mr.

INHOFE, Mr. SANTORUM, Mr. DEWINE, and Mr. SPECTER) introduced

the following bill; which was read the first time

JUNE 6, 2000

Read the second time and placed on the calendar

A BILL

To provide for the application of certain measures to the

People’s Republic of China in response to the illegal

sale, transfer, or misuse of certain controlled goods, services, or technology, 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 ‘‘China Nonproliferation

5 Act’’.
2

•S 2645 PCS

1 SEC. 2. DEFINITIONS.

2 In this Act:

3 (1) ADVANCED CONVENTIONAL WEAPONS.—The

4 term ‘‘advanced conventional weapons’’ includes—

5 (A) long-range precision-guided munitions,

6 fuel air explosives, cruise missiles, low observ7 ability aircraft or vessels, other radar evading

8 aircraft or vessels, advanced military aircraft,

9 military satellites, electromagnetic weapons, and

10 laser weapons;

11 (B) advanced command, control, and com12 munications systems, electronic warfare sys13 tems, and intelligence collection systems; and

14 (C) such other items or systems as the

15 President may, by regulation, determine nec16 essary for purposes of this title.

17 (2) GOODS AND TECHNOLOGY.—The terms

18 ‘‘goods’’ and ‘‘technology’’ mean—

19 (A) any article, natural or manmade sub20 stance, material, supply, or manufactured prod21 uct, including inspection and test equipment;

22 and

23 (B) any information and know-how (wheth24 er in tangible form, such as models, prototypes,

25 drawings, sketches, diagrams, blueprints, or

26 manuals, or in intangible form, such as training
3

•S 2645 PCS

1 or technical services) that can be used to de2 sign, produce, manufacture, utilize, improve the

3 performance of or reconstruct goods, including

4 computer software and technical data.

5 (3) PERSON.—The term ‘‘person’’ means—

6 (A) any United States or People’s Republic

7 of China individual, partnership, corporation, or

8 other form of association, or any of their suc9 cessor entities, parents, or subsidiaries;

10 (B) any other nongovernmental entity, or11 ganization, or group, that is organized under

12 the laws of the United States or the People’s

13 Republic of China or has its principal place of

14 business in the United States or the People’s

15 Republic of China;

16 (C) any governmental entity of the Peo17 ple’s Republic of China operating as a business

18 enterprise; and

19 (D) any successor, subunit, or subsidiary

20 of any entity described in subparagraphs (A)

21 through (C).

22 (4) PROLIFERATION ACTIVITY.—The term

23 ‘‘proliferation activity’’ means the activity described

24 in section 3(a)(1).
4

•S 2645 PCS

1 (5) STATE-OWNED ENTERPRISE OF THE PEO2 PLE’S REPUBLIC OF CHINA.—

3 (A) IN GENERAL.—The term ‘‘state-owned

4 enterprise of the People’s Republic of China’’

5 means a person who is affiliated with or wholly

6 owned, controlled, or subsidized by the Govern7 ment of the People’s Republic of China or the

8 People’s Liberation Army and whose means of

9 production, products, and revenues are owned

10 or controlled by a central or provincial govern11 ment authority. A person shall be considered to

12 be state-owned if—

13 (i) the person’s assets are primarily

14 owned by a central or provincial govern15 ment authority;

16 (ii) a substantial proportion of the

17 person’s profits are required to be sub18 mitted to a central or provincial govern19 ment authority;

20 (iii) the person’s production, pur21 chases of inputs, and sales of output, in

22 whole or in part, are subject to state, sec23 toral, or regional plans; or
5

•S 2645 PCS

1 (iv) a license issued by a government

2 authority classifies the person as state3 owned.

4 (B) EXCEPTION.—Any person that—

5 (i) is a qualified foreign joint venture

6 or is licensed by a governmental authority

7 as a collective, cooperative, or private en8 terprise; or

9 (ii) is wholly owned by a foreign per10 son,

11 shall not be considered to be state-owned.

12 (C) QUALIFIED FOREIGN JOINT VEN13 TURE.—The term ‘‘qualified foreign joint ven14 ture’’ means any person—

15 (i) which is registered and licensed in

16 the agency or department of the Govern17 ment of the People’s Republic of China

18 concerned with foreign economic relations

19 and trade as an equity, cooperative, con20 tractual joint venture, or joint stock com21 pany with foreign investment;

22 (ii) in which the foreign investor part23 ner and a person of the People’s Republic

24 of China share profits and losses and joint25 ly manage the venture;
6

•S 2645 PCS

1 (iii) in which the foreign investor

2 partner holds or controls at least 25 per3 cent of the investment and the foreign in4 vestor partner is not substantially owned

5 or controlled by a state-owned enterprise of

6 the People’s Republic of China;

7 (iv) in which the foreign investor part8 ner is not a person of a country the gov9 ernment of which the Secretary of State

10 has determined under section 6(j) of the

11 Export Administration Act of 1979 (50

12 U.S.C. App. 2405(j)) to have repeatedly

13 provided support for acts of international

14 terrorism; and

15 (v) which does not use state-owned

16 enterprises of the People’s Republic of

17 China to export its goods or services.

18 (6) UNITED STATES ASSISTANCE.—The term

19 ‘‘United States assistance’’ means—

20 (A) any assistance under the Foreign As21 sistance Act of 1961, other than urgent human22 itarian assistance or medicine;

23 (B) sales and assistance under the Arms

24 Export Control Act;
7

•S 2645 PCS

1 (C) financing by the Commodity Credit

2 Corporation for export sales of agricultural

3 commodities; and

4 (D) financing under the Export-Import

5 Bank Act.

6 SEC. 3. REPORTS ON PROLIFERATION BY PEOPLE’S REPUB7 LIC OF CHINA.

8 (a) REPORTS.—

9 (1) IN GENERAL.—The President shall, at the

10 times specified in subsection (b), submit to the Com11 mittee on International Relations of the House of

12 Representatives, the Committee on Foreign Rela13 tions of the Senate, the Committee on Armed Serv14 ices of the Senate, the Select Committee on Intel15 ligence of the Senate, and the Committee on Govern16 mental Affairs of the Senate, a report identifying

17 every person with respect to whom there is credible

18 information indicating that that person, on or after

19 January 1, 2000, transferred, retransferred, sold,

20 misused, or diverted from, or within, the People’s

21 Republic of China to a foreign person or national of

22 the People’s Republic of China involved in the devel23 opment or acquisition of nuclear, chemical, or bio24 logical weapons or ballistic or cruise missiles—
8

•S 2645 PCS

1 (A) goods, services, or technology listed

2 on—

3 (i) the Nuclear Suppliers Group

4 Guidelines for the Export of Nuclear Mate5 rial, Equipment and Technology (published

6 by the International Atomic Energy Agen7 cy as Information Circular INFCIRC/254/

8 Rev. 3/Part 1, and subsequent revisions)

9 and Guidelines for Transfers of Nuclear10 Related Dual-Use Equipment, Material,

11 and Related Technology (published by the

12 International Atomic Energy Agency as In13 formation Circular INFCIRC/254/Rev. 3/

14 Part 2, and subsequent revisions);

15 (ii) the Missile Technology Control

16 Regime Equipment and Technology Annex

17 of June 11, 1996, and subsequent revi18 sions;

19 (iii) the lists of items and substances

20 relating to biological and chemical weapons

21 the export of which is controlled by the

22 Australia Group;

23 (iv) the Schedules of the Convention

24 on the Prohibition of the Development,

25 Production, Stockpiling and Use of Chem-
9

•S 2645 PCS

1 ical Weapons and on Their Destruction, in2 cluding chemicals, precursors, and other

3 substances; or

4 (v) the Wassenaar Arrangement list of

5 Dual Use Goods and Technologies and

6 Munitions list of July 12, 1996, and subse7 quent revisions; or

8 (B) goods, services, or technology not list9 ed on any list identified in subparagraph (A)

10 but which nevertheless would be, if the goods,

11 services, or technology were United States

12 goods, services, or technology, prohibited or

13 controlled for export to the People’s Republic of

14 China, or any tier IV countries as defined by

15 the Bureau of Export Administration of the De16 partment of Commerce, and that have the po17 tential to make a contribution to the develop18 ment, improvement, or production of nuclear,

19 biological, or chemical weapons, or of ballistic

20 or cruise missile systems, or advanced conven21 tional weapons or munitions.

22 (2) ACTION BY PERSONS IDENTIFIED.—The

23 President shall include in the report information on

24 any action taken by a person identified in a prior

25 annual report under this subsection that establishes
10

•S 2645 PCS

1 that the person has discontinued, rectified, or miti2 gated a prior proliferation activity identified under

3 this Act.

4 (3) ACTION BY PRESIDENT.—The President

5 shall include in the report information on actions

6 taken by the President under sections 4 and 5, in

7 response to proliferation activities conducted by per8 sons identified in this section. The President shall

9 include in the report information on any determina10 tions made under section 7. If the President fails to

11 exercise the authority under sections 4 and 5, or if

12 the President makes a determination under section

13 7, with respect to a person identified in a report

14 submitted pursuant to this section, the President

15 shall include that information and the reasons there16 fore in the report required under this section.

17 (4) OTHER INFORMATION.—In addition to the

18 information required by paragraphs (1) through (3),

19 the President shall include in the report information

20 on—

21 (A) noncompliance with any international

22 nonproliferation treaties, agreements, arrange23 ments, or commitments (verbal, written, or oth24 erwise) by the People’s Republic of China, in-
11

•S 2645 PCS

1 cluding the Missile Technology Control Regime

2 and the annexes to that Regime;

3 (B) noncompliance with United States ex4 port control laws, Executive orders, regulations,

5 or export license conditions by the People’s Re6 public of China;

7 (C) the performance of the Department of

8 Commerce in licensing, regulating, and control9 ling the export of dual-use technology to the

10 People’s Republic of China, including the num11 ber and type of post-shipment verifications con12 ducted and enforcement actions taken;

13 (D) the threats to the security interests of

14 the United States, or the security interests of

15 its allies resulting from—

16 (i) proliferation activities on the part

17 of the People’s Republic of China or per18 sons identified in reports submitted under

19 this section;

20 (ii) the transfer or sale to the Govern21 ment of, or persons within the People’s Re22 public of China of dual-use technologies

23 and goods listed on the Commerce Control

24 List;
12

•S 2645 PCS

1 (iii) the misuse or diversion by the

2 People’s Republic of China of dual-use

3 technology; and

4 (iv) the transfer or sale of goods, serv5 ices, or technology identified by the Direc6 tor of Central Intelligence as having a sig7 nificant potential to make a contribution to

8 the development, improvement, or produc9 tion of nuclear, biological, or chemical

10 weapons, or of ballistic or cruise missile

11 systems, or advanced conventional weapons

12 or munitions; and

13 (E) transfers to persons of the People’s

14 Republic of China of technology under arms

15 control and nonproliferation agreements and

16 opportunities for the People’s Republic of China

17 to engage in proliferation activities under agree18 ments such as Nuclear Nonproliferation Treaty,

19 Chemical Weapons Convention, Comprehensive

20 Test Ban Treaty, and Biological Weapons Con21 vention.

22 (b) TIMING OF REPORTS.—The reports required

23 under subsection (a) shall be submitted no later than 90

24 days after the date of enactment of this Act, and on June

25 1 of each year thereafter.
13

•S 2645 PCS

1 (c) EXCEPTIONS.—Any person who—

2 (1) has engaged in the transfer, sale, or misuse

3 of any goods, services, or technology on behalf of, or

4 in concert with, the Government of the United

5 States; or

6 (2) has transferred, retransferred, or sold such

7 goods, services, or technology in a manner fully con8 sistent with all applicable international nonprolifera9 tion treaties, agreements, and commitments with re10 spect to which the People’s Republic of China is a

11 party,

12 is not required to be identified on account of that transfer

13 in any report submitted under this section, except to the

14 degree that credible information indicates that the par15 ticular transfer, sale, or misuse may have continued, or

16 been larger, more significant, or different in nature than

17 permitted on behalf of the Government of the United

18 States or under such international nonproliferation treaty

19 or agreement.

20 (d) SUBMISSION IN CLASSIFIED FORM.—Reports

21 shall be submitted in unclassified form, with classified an22 nexes as necessary.
14

•S 2645 PCS

1 SEC. 4. APPLICATION OF MANDATORY MEASURES TO CER2 TAIN PERSONS.

3 (a) APPLICATION OF MEASURES.—Subject to section

4 7, the President shall apply with respect to each person

5 identified in a report submitted pursuant to section 3(a),

6 for such period of time as the President may determine

7 but not less than one year, all of the measures described

8 in subsection (b).

9 (b) DESCRIPTION OF MEASURES.—The measures re10 ferred to in subsection (a) are the following:

11 (1) EXECUTIVE ORDER NO. 12938 PROHIBI12 TIONS.—Imposition of the measures set forth in sub13 sections (b) and (c) of section 4 of Executive Order

14 No. 12938.

15 (2) ARMS EXPORT.—Prohibition on United

16 States Government transfers or sales to such person

17 of any item on the United States Munitions List as

18 in effect on August 8, 1995, and termination of all

19 sales and after-sale servicing to such person of any

20 defense articles, defense services, or design and con21 struction services under the Arms Export Control

22 Act.

23 (3) DUAL-USE EXPORT PROHIBITION.—Denial

24 of licenses, suspension of existing licenses, and ter25 mination of all transfers or sales and after-sale serv26 icing for the transfer to such person of any item the
15

•S 2645 PCS

1 export of which is controlled under the Export Ad2 ministration Act of 1979 (as extended pursuant to

3 the International Emergency Economic Powers Act)

4 or the Export Administration regulations.

5 (4) PROCUREMENT SANCTION.—Prohibition on

6 the United States Government procuring, or enter7 ing into any contract for the procurement of, any

8 goods or services from such person.

9 (5) UNITED STATES ASSISTANCE PROHIBI10 TION.—Prohibition on the provision of United States

11 assistance in the form of grants, loans, credits, guar12 antees, or otherwise, to such person.

13 (6) SUSPENSION OF AGREEMENTS.—Immediate

14 suspension of any agreements or efforts for the co15 development or co-production with such person of

16 any item on the United States Munitions List.

17 (c) EFFECTIVE DATE OF MEASURES.—Each meas18 ure imposed pursuant to subsection (a) shall take effect

19 with respect to such person 30 days after the date that

20 the report identifying the person is submitted to Congress.

21 (d) PUBLICATION IN FEDERAL REGISTER.—Notice

22 of the imposition of the measure described in subsection

23 (b) to a person identified pursuant to section 3(a) shall

24 be published in the Federal Register, unless the President
16

•S 2645 PCS

1 determines that doing so would threaten the national secu2 rity or intelligence interests of the United States.

3 (e) DURATION OF MEASURES.—Each measure im4 posed under this section shall apply for a period of at least

5 12 months following the imposition of the measure and

6 shall cease to apply only if the President determines and

7 certifies to Congress that—

8 (1) credible information indicates that the per9 son with respect to whom the determination was

10 made under section 3(a) has ceased the activities for

11 which the measure was imposed;

12 (2) credible information indicates that the per13 son has taken reasonable steps to rectify the viola14 tion; and

15 (3) the President has received reasonable assur16 ances from the person that such person will not en17 gage in similar activities in the future.

18 SEC. 5. APPLICATION OF ADDITIONAL MEASURES DI19 RECTED AT THE GOVERNMENT OF THE PEO20 PLE’S REPUBLIC OF CHINA.

21 (a) IN GENERAL.—In addition to the mandatory

22 measures described in section 4 applied against persons

23 identified pursuant to section 3(a), the President shall

24 apply additional measures as follows against the People’s

25 Republic of China:
17

•S 2645 PCS

1 (1) TIER 1 MEASURES.—The President shall

2 apply one or more of the measures listed in tier 1

3 that are not in effect under this or any other Act

4 or Executive order with respect to the People’s Re5 public of China in conjunction with, and at the same

6 time, as the mandatory measures applied against the

7 person under section 4.

8 (2) TIER 2 MEASURES.—If, one year after the

9 measures described in section 4 are imposed, the

10 proliferation activities upon which the measures were

11 based are not rectified as described in section 4(e),

12 or the person has engaged in additional proliferation

13 activities, the President shall continue to apply the

14 measures described in section 4, any tier 1 measure

15 in effect, and shall also impose one or more tier 2

16 measures not in effect under this or any other Act

17 or Executive order with respect to the People’s Re18 public of China.

19 (3) TIER 3 MEASURES.—If 2 years after the

20 measures described in section 4 are imposed, the

21 proliferation activities upon which the measures were

22 based are not rectified as described in section 4(e),

23 or the person has engaged in additional proliferation

24 activities, the President shall continue to apply the

25 measures described in section 4, any tier 1 or tier
18

•S 2645 PCS

1 2 measures in effect, and shall also impose one or

2 more tier 3 measures not in effect under this or any

3 other Act or Executive order with respect to the

4 People’s Republic of China.

5 (b) DEFINITION OF TIER 1, TIER 2, AND TIER 3

6 MEASURES.—

7 (1) TIER 1 MEASURE.—The term ‘‘tier 1 meas8 ure’’ includes any or all of the following:

9 (A) Suspension of all military-to-military

10 contacts and exchanges between the People’s

11 Republic of China and the United States.

12 (B) Suspension of all United States assist13 ance to the People’s Republic of China by the

14 United States Government.

15 (C) Prohibition on United States bank

16 loans or bond offerings in United States mar17 kets on the part of any national of the People’s

18 Republic of China or any state-owned enterprise

19 of the People’s Republic of China.

20 (D) Prohibition on the transfer or sale or

21 after-sale servicing, including the provision of

22 replacement parts, to the People’s Republic of

23 China or any national of the People’s Republic

24 of China of any item on the United States Mu25 nitions List and suspension of any agreement
19

•S 2645 PCS

1 with the People’s Republic of China or any na2 tional of the People’s Republic of China or any

3 state-owned enterprise of the People’s Republic

4 of China for the co-development or co-produc5 tion of any item on the United States Muni6 tions List.

7 (2) TIER 2 MEASURE.—The term ‘‘tier 2 meas8 ure’’ includes any or all of the following:

9 (A) Suspension of all scientific, academic,

10 and technical exchanges between the People’s

11 Republic of China and the United States.

12 (B) Direction of the Export-Import Bank

13 of the United States not to approve the

14 issuance of any guarantees, insurance, exten15 sion of credit, or participation in the extension

16 of credit to the People’s Republic of China.

17 (C) Denial of access to the capital markets

18 of the United States by all state-owned enter19 prises of the People’s Republic of China.

20 (D) Prohibition on the transfer or sale to

21 the People’s Republic of China or any national

22 of the People’s Republic of China of any item

23 on the Commerce Control List that is controlled

24 for national security purposes and prohibition
20

•S 2645 PCS

1 of after-sale servicing, including the provision of

2 replacement parts for such items.

3 (3) TIER 3 MEASURE.—The term ‘‘tier 3 meas4 ure’’ includes any or all of the following:

5 (A) Prohibition on procurement by the

6 United States Government or entering into any

7 contract for the procurement of, any goods or

8 services from the People’s Republic of China or

9 any national of the People’s Republic of China.

10 (B) Designation of the People’s Republic

11 of China in a country tier under the Export Ad12 ministration Regulations that is higher than the

13 country tier in effect.

14 (C) Denial of access to the capital markets

15 of the United States by any company owned or

16 controlled by nationals of the People’s Republic

17 of China.

18 (D) Prohibition on the transfer or sale to

19 the People’s Republic of China or any national

20 of the People’s Republic of China of any item

21 on the Commerce Control List and prohibition

22 of after-sale servicing, including replacement

23 parts for such items.
21

•S 2645 PCS

1 SEC. 6. PROCEDURES FOR CONGRESSIONAL REVIEW.

2 (a) WRITTEN JUSTIFICATION.—Any notification sub3 mitted by the President under section 3 indicating that

4 the President is not imposing a measure or exercising au5 thority under section 4 or 5 or that the President is mak6 ing a determination under section 7 shall include a written

7 justification describing in detail the facts and cir8 cumstances relating specifically to the person identified in

9 a report submitted pursuant to section 3(a) that supports

10 the President’s decision not to exercise the authority of

11 section 4 or section 5 or the President’s decision to make

12 a determination under section 7 with respect to that per13 son.

14 (b) CONGRESSIONAL ACTION.—If Congress receives

15 a notification described in section 3 and does not agree

16 with the justification described in subsection (a), the ap17 propriate measure shall be imposed with respect to the

18 person identified in the notification if a joint resolution

19 described in this section is enacted into law.

20 (c) JOINT RESOLUTION.—

21 (1) DEFINITION.—For purposes of this section,

22 a joint resolution means a resolution introduced by

23 any Member of Congress after the date the notifica24 tion described in section 3 is received, the resolving

25 clause of which contains only the following: ‘‘That

26 Congress does not agree with the justification con-
22

•S 2645 PCS

1 tained in the notification submitted by the President

2 pursuant to the China Nonproliferation Act on

3 lllllll and that the President shall exer4 cise the mandatory measures under section 4 of the

5 Act and one or all of the tier ll measures under

6 that Act.’’; with the first blank space being filled

7 with the appropriate date and the second blank

8 space being filled with the appropriate tier.

9 (2) REFERRAL TO COMMITTEE.—

10 (A) SENATE.—A joint resolution intro11 duced in the Senate shall be referred to the

12 Committee on Foreign Relations of the Senate.

13 (B) HOUSE OF REPRESENTATIVES.—A

14 joint resolution introduced in the House of Rep15 resentatives shall be referred to the Committee

16 on International Relations of the House of Rep17 resentatives.

18 (C) REPORTING.—A joint resolution may

19 not be reported before the 8th day after the

20 date on which the joint resolution is introduced.

21 (3) DISCHARGE OF COMMITTEE.—If the com22 mittee to which a joint resolution is referred in ei23 ther House has not reported the joint resolution (or

24 an identical joint resolution) at the end of 15 cal25 endar days during which that House is in session
23

•S 2645 PCS

1 after the date on which the joint resolution is

2 introduced—

3 (A) the committee shall be deemed to be

4 discharged from further consideration of the

5 joint resolution; and

6 (B) the joint resolution shall be placed on

7 the appropriate calendar of that House.

8 (4) FLOOR CONSIDERATION.—

9 (A) IN GENERAL.—

10 (i) MOTION TO PROCEED TO CONSID11 ERATION.—When the committee to which a

12 joint resolution is referred in either House

13 has reported, or has been deemed to be

14 discharged (under paragraph (3)) from

15 further consideration of, a joint

16 resolution—

17 (I) it is at any time thereafter in

18 order (even though a previous motion

19 to the same effect has been disagreed

20 to) for any Member of that House to

21 move to proceed to the consideration

22 of the joint resolution; and

23 (II) all points of order against

24 the joint resolution (and against con-
24

•S 2645 PCS

1 sideration of the joint resolution) are

2 waived.

3 (ii) TREATMENT OF MOTION.—A mo4 tion under clause (i)—

5 (I) is privileged in the Senate

6 and is highly privileged in the House

7 of Representatives;

8 (II) is not debatable; and

9 (III) is not subject to amend10 ment, a motion to postpone, or a mo11 tion to proceed to the consideration of

12 other business.

13 (iii) NO MOTION TO RECONSIDER.—A

14 motion to reconsider the vote by which a

15 motion under clause (i) is agreed to or dis16 agreed to shall not be in order.

17 (iv) AGREEMENT TO MOTION.—If a

18 motion under clause (i) is agreed to, the

19 joint resolution shall remain the unfinished

20 business of the House until the House dis21 poses of the joint resolution.

22 (B) DEBATE.—

23 (i) TIME.—Debate on a joint resolu24 tion, and on all debatable motions and ap25 peals in connection with consideration of a
25

•S 2645 PCS

1 joint resolution, shall be limited to not

2 more than 10 hours, which shall be divided

3 equally between those favoring and those

4 opposing the joint resolution. A motion

5 further to limit debate is in order and not

6 debatable.

7 (ii) AMENDMENTS AND MOTIONS OUT

8 OF ORDER.—An amendment to a joint res9 olution, a motion to postpone, to proceed

10 to the consideration of other business, or

11 to recommit such a joint resolution, or a

12 motion to reconsider the vote by which

13 such a joint resolution is agreed to or dis14 agreed to is not in order.

15 (C) VOTE ON FINAL PASSAGE.—A vote on

16 final passage of the joint resolution shall be

17 taken in each House on or before the close of

18 the 15th calendar day during which that House

19 is in session after the resolution is reported by

20 the committee of that House to which it was re21 ferred, or after the committee has been dis22 charged from further consideration of the reso23 lution.

24 (D) RULINGS OF THE CHAIR OF PROCE25 DURE.—Appeals from the decisions of the Chair
26

•S 2645 PCS

1 relating to the application of the rules of either

2 House to the procedure relating to a joint reso3 lution shall be decided without debate.

4 (5) COORDINATION WITH ACTION BY OTHER

5 HOUSE.—

6 (A) IN GENERAL.—If, before the passage

7 by 1 House of a joint resolution of that House,

8 that House receives from the other House a

9 joint resolution, the procedures stated in this

10 paragraph shall apply.

11 (B) NO REFERRAL.—The joint resolution

12 of the other House shall not be referred to a

13 committee.

14 (C) PROCEDURE.—With respect to a joint

15 resolution of the House receiving the joint

16 resolution—

17 (i) the procedure in that House shall

18 be the same as if no joint resolution had

19 been received from the other House; but

20 (ii) the vote on final passage shall be

21 on the joint resolution of the other House.

22 (6) RULES OF THE SENATE AND THE HOUSE

23 OF REPRESENTATIVES.—This subsection is enacted

24 by Congress—
27

•S 2645 PCS

1 (A) as an exercise of the rulemaking power

2 of the Senate and the House of Representa3 tives, respectively; and

4 (i) is deemed a part of the rules of

5 each House, respectively, but applicable

6 only with respect to the procedure to be

7 followed in that House in the case of a

8 joint resolution; and

9 (ii) supersedes other rules only to the

10 extent that the subsection is inconsistent

11 with those rules; and

12 (B) with full recognition of the constitu13 tional right of either House to change the rules

14 (so far as the rules relate to the procedure of

15 that House) at any time, in the same manner

16 and to the same extent as in the case of any

17 other rule of that House.

18 SEC. 7. DETERMINATION EXEMPTING PERSON OR THE PEO19 PLE’S REPUBLIC OF CHINA FROM SECTIONS 4

20 AND 5.

21 (a) IN GENERAL.—Sections 4 and 5 shall not apply

22 to a person or to the People’s Republic of China 15 days

23 after the President reports to the Committee on Inter24 national Relations of the House of Representatives, the

25 Committee on Foreign Relations of the Senate, the Com-
28

•S 2645 PCS

1 mittee on Armed Services of the Senate, the Select Com2 mittee on Intelligence of the Senate, and the Committee

3 on Governmental Affairs of the Senate, that the President

4 has determined, on the basis of information provided by

5 that person, or otherwise obtained by the President,

6 that—

7 (1) the person did not, on or after January 1,

8 2000, knowingly transfer to or export from the Peo9 ple’s Republic of China the goods, services, or tech10 nology the apparent transfer or export of which

11 caused that person to be identified in a report sub12 mitted pursuant to section 3(a);

13 (2) the person is subject to the primary juris14 diction of a government that is an adherent to one

15 or more relevant nonproliferation regimes, the per16 son was identified in a report submitted pursuant to

17 section 3(a) with respect to a transfer of goods,

18 services, or technology described in section 3(a)(1),

19 and such transfer was made consistent with the

20 guidelines and parameters of all such relevant re21 gimes of which such government is an adherent; or

22 (3) it is important to the national security of

23 the United States not to apply the provisions of sec24 tion 4 or 5.
29

•S 2645 PCS

1 (b) OPPORTUNITY TO PROVIDE INFORMATION.—

2 Congress urges the President—

3 (1) in every appropriate case, to contact in a

4 timely fashion each person identified in each report

5 submitted pursuant to section 3(a), or the govern6 ment with primary jurisdiction over such person, in

7 order to afford such person or government, the op8 portunity to provide explanatory, exculpatory, or

9 other additional information with respect to the

10 transfer that caused such person to be identified in

11 a report submitted pursuant to section 3(a); and

12 (2) to exercise the authority in subsection (a) in

13 all cases where information obtained from a foreign

14 person identified in a report submitted pursuant to

15 section 3(a), or from the government with primary

16 jurisdiction over such person, establishes that the ex17 ercise of such authority is warranted.

18 (c) SUBMISSION IN CLASSIFIED FORM.—The deter19 mination and report of the President under subsection (a)

20 should be submitted in unclassified form, with classified

21 annexes as necessary.

22 SEC. 8. NOTIFICATION TO SECURITIES COMMISSION OF IN23 CLUSION IN REPORT.

24 (a) DEFINITIONS.—In this section, the following defi25 nitions shall apply:
30

•S 2645 PCS

1 (1) COMMISSION.—The term ‘‘Commission’’

2 means the Securities and Exchange Commission.

3 (2) REGISTERED NATIONAL SECURITIES ASSO4 CIATION.—The term ‘‘registered national securities

5 association’’ means an association registered under

6 section 15A(b) of the Securities Exchange Act of

7 1934 (15 U.S.C. 78o–3(b)).

8 (3) REGISTERED NATIONAL SECURITIES EX9 CHANGE.—The term ‘‘registered national securities

10 exchange’’ means a national securities exchange reg11 istered under 6 of the Securities Exchange Act of

12 1934 (15 U.S.C. 78f).

13 (4) REGISTRATION STATEMENT.—The term

14 ‘‘registration statement’’ has the same meaning as

15 in section 2 of the Securities Act of 1933 (15 U.S.C.

16 77b).

17 (5) SECURITIES LAWS.—The terms ‘‘securities

18 laws’’ and ‘‘security’’ have the same meanings as in

19 section 3 of the Securities Exchange Act of 1934

20 (15 U.S.C. 78c).

21 (b) NOTIFICATION TO THE COMMISSION.—Each re22 port prepared by the President under section 3 shall be

23 transmitted to the Commission at the times specified in

24 section 3(b).
31

•S 2645 PCS

1 (c) REGULATIONS.—Not later than 6 months after

2 the date of enactment of this Act, the Commission shall

3 promulgate regulations—

4 (1) to ensure that securities investors are noti5 fied of the identity of any person included in a re6 port prepared by the President under section 3, the

7 securities of which are listed, or authorized for list8 ing, on a registered national securities exchange (or

9 tier or segment thereof) or by a registered national

10 securities association; and

11 (2) to require each person included in a report

12 of the President under section 3 to provide notice of

13 such inclusion in each written report, statement, or

14 other filing or notice required from that person

15 under the securities laws, including—

16 (A) any registration statement;

17 (B) any annual or quarterly report, state18 ment, or other filing or notice;

19 (C) any proxy, consent, authorization, in20 formation statement, or other notice required to

21 be sent to shareholders with respect to any se22 curity registered pursuant to the securities

23 laws;
32

•S 2645 PCS

1 (D) any report, statement, or other filing

2 or notice required in connection with an initial

3 public offering; and

4 (E) any report, statement, or other filing

5 required in connection with a merger, acquisi6 tion, tender offer, or similar transaction.

Calendar No. 583

106TH CONGRESS

2D SESSION S. 2645

A BILL

To provide for the application of certain measures

to the People’s Republic of China in response tothe illegal sale, transfer, or misuse of certaincontrolled goods, services, or technology, and forother purposes.

JUNE 6, 2000

Read the second time and placed on the calendar