(3) DEFENSE
SERVICES
AND
DEFENSE
CON-
STRUCTION SERVICES.— 
(A) IN GENERAL.—The President may fi-
nance the procurement of defense services and 
design and construction services by the Govern-
ment of Taiwan in connection with a loan or 
lease of a defense article to such Government 
under paragraph (1), if, as a condition of such 
financing, the President requires that, not later 
than 12 years after the date on which the 
agreement with the Government of Taiwan for 
such financing is signed on behalf of the United 
States Government, the Government of Taiwan 
pay to the United States Government (in 
United States dollars) an amount equal to the 
sum of— 
(i) the value of such services; and 
(ii) any interest on the unpaid balance 
of the obligation for payment under clause 
(i), at a rate that, except as provided in 
subparagraph (B), is equivalent to the av-
erage interest rate, as of the last day of 
the month preceding the date on which 
such agreement is signed, that the United 
States Government pays on outstanding 
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marketable obligations of comparable ma-
turity. 
(B) EXCEPTION TO INTEREST RATE RE-
QUIREMENT.—If the President submits to Con-
gress a certification containing a determination 
that national security requires a lesser rate of 
interest than the rate calculated pursuant to 
subparagraph (A)(ii), a justification for such 
determination, and an identification of such 
lesser rate, the lesser rate so identified shall 
apply in lieu of the rate calculated pursuant to 
subparagraph (A)(ii). 
(c) DELEGATION
OF AUTHORITY.—The President 
may delegate the authority under subsection (b) only to 
an official appointed by the President by and with the ad-
vice and consent of the Senate. 
(d) PROCEDURES FOR DELIVERY OF DEFENSE ARTI-
CLES.—Not later than 60 days after the date of the enact-
ment of this Act, the President shall establish expedited 
procedures for the delivery of any defense article loaned 
or leased to the Government of Taiwan under subsection 
(b) to ensure the timely delivery of the defense article to 
such Government. 
(e) REPORT
ON
DETERMINATION
OF
DEFENSE 
NEEDS OF TAIWAN.— 
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(1) REPORT.—Not later than 90 days after the 
date of the enactment of this Act, the Secretary of 
Defense, in collaboration with the Commander of the 
United States Indo-Pacific Command, shall submit 
to Congress a report on the potential loan and lease 
of defense articles to the Government of Taiwan 
under subsection (b). Such report shall include the 
following: 
(A) An initial assessment of the defense 
articles that are appropriate for such loan or 
lease. 
(B) An assessment of any supply chain or 
other logistical challenges associated with the 
loan or lease of defense articles identified pur-
suant to subparagraph (A). 
(C) A discussion of expected timeframes 
for the provision to the Government of Taiwan 
of defense articles identified pursuant to sub-
paragraph (A), including— 
(i) expected timelines for the delivery 
of such defense articles; and 
(ii) expected timelines for the full in-
tegration of such defense articles by the 
military of Taiwan, such that the military 
of Taiwan is able to effectively use defense 
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articles so delivered in the event of a con-
flict with the People’s Republic of China. 
(D) Such other matters as the Secretary 
may consider appropriate. 
(2) FORM.—The report under paragraph (1) 
shall be submitted in unclassified form, but may in-
clude a classified annex. 
(f) DEFINITIONS.—In this section, the terms ‘‘de-
fense article’’, ‘‘defense service’’, and ‘‘design and con-
struction services’’ have the meanings given those terms 
in section 47 of the Arms Export Control Act (22 U.S.C. 
2794). 
Æ 
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