H. R. 2810—403 
SEC. 1259. STRENGTHENING THE DEFENSE PARTNERSHIP BETWEEN 
THE UNITED STATES AND TAIWAN. 
(a) STATEMENT OF POLICY.—It is the policy of the United States 
to reinforce its commitments to Taiwan under the Taiwan Relations 
Act and consistent with the ‘‘Six Assurances’’ as both governments 
work to improve Taiwan’s self-defense capability. 
(b) SENSE
OF CONGRESS.—It is the sense of Congress that 
the United States should— 
(1) strengthen and enhance its longstanding partnership 
and cooperation with Taiwan; 
(2) conduct regular transfers of defense articles and defense 
services necessary to enable Taiwan to maintain a sufficient 
self-defense capability, based solely on the needs of Taiwan; 
(3) invite the military forces of Taiwan to participate in 
military exercises, such as the ‘‘Red Flag’’ exercises; 
(4) carry out a program of exchanges of senior military 
officers and senior officials with Taiwan to improve military- 
to-military relations, as expressed in section 1284 of the 
National Defense Authorization Act for Fiscal Year 2017 (Public 
Law 114–328; 130 Stat. 2544); 
(5) support expanded exchanges focused on practical 
training for Taiwan personnel by and with United States mili-
tary units, including exchanges among services; 
(6) conduct bilateral naval exercises, to include pre-sail 
conferences, in the western Pacific Ocean with the Taiwan 
navy; and 
(7) consider the advisability and feasibility of reestablishing 
port of call exchanges between the United States navy and 
the Taiwan navy. 
SEC. 1259A. NORMALIZING THE TRANSFER OF DEFENSE ARTICLES AND 
DEFENSE SERVICES TO TAIWAN. 
(a) SENSE
OF CONGRESS.—It is the sense of Congress that 
any requests from the Government of Taiwan for defense articles 
and defense services should receive a case-by-case review by the 
Secretary of Defense, in consultation with the Secretary of State, 
that is consistent with the standard processes and procedures in 
an effort to normalize the arms sales process with Taiwan. 
(b) REPORT.— 
(1) IN GENERAL.—Not later than 120 days after the date 
on which the Secretary of Defense receives a Letter of Request 
from Taiwan with respect to the transfer of a defense article 
or defense service to Taiwan, the Secretary, in consultation 
with the Secretary of State, shall submit to the appropriate 
congressional committees a report that includes— 
(A) the status of such request; 
(B) if the transfer of such article or service would 
require a certification or report to Congress pursuant to 
any applicable provision of section 36 of the Arms Export 
Control Act (22 U.S.C. 2776), the status of any Letter 
of Offer and Acceptance the Secretary of Defense intends 
to issue with respect to such request; and 
(C) an assessment of whether the transfer of such 
article or service would be consistent with United States 
obligations under the Taiwan Relations Act (Public Law 
96–8; 22 U.S.C. 3301 et seq.).
H. R. 2810—404 
(2) ELEMENTS.—Each report required under paragraph (1) 
shall specify the following: 
(A) The date the Secretary of Defense received the 
Letter of Request. 
(B) The value of the sale proposed by such Letter 
of Request. 
(C) A description of the defense article or defense 
service proposed to be transferred. 
(D) The view of the Secretary of Defense with respect 
to such proposed sale and whether such sale would be 
consistent with United States defense initiatives with 
Taiwan. 
(3) FORM.—Each report required under paragraph (1) shall 
be submitted in unclassified form but may contain a classified 
annex. 
(c) BRIEFING.—Not later than 180 days after the date of the 
enactment of this Act, and every 180 days thereafter, the Secretary 
of Defense, in coordination with the Secretary of State, shall provide 
a briefing to the appropriate congressional committees with respect 
to the security challenges faced by Taiwan and the military coopera-
tion between the United States and Taiwan, including a description 
of any requests from Taiwan for the transfer of defense articles 
or defense services and the status, whether signed or unsigned, 
of any Letters of Offer and Acceptance with respect to such requests. 
(d) DEFINITIONS.—In this section: 
(1) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term 
‘‘appropriate congressional committees’’ means— 
(A) the Committee on Armed Services and the Com-
mittee on Foreign Affairs of the House of Representatives; 
and 
(B) the Committee on Armed Services and the Com-
mittee on Foreign Relations of the Senate. 
(2) DEFENSE
ARTICLE; 
DEFENSE
SERVICE.—The terms 
‘‘defense article’’ and ‘‘defense service’’ have the meanings given 
such terms in section 47 of the Arms Export Control Act (22 
U.S.C. 2794). 
(3) LETTER OF REQUEST; LETTER OF OFFER AND ACCEPT-
ANCE.—The terms ‘‘Letter of Request’’ and ‘‘Letter of Offer 
and Acceptance’’ have the meanings given such terms for pur-
poses of Chapter 5 of the Security Assistance Management 
Manual of the Defense Security Cooperation Agency, as in 
effect on the date of the enactment of this Act. 
SEC. 1259B. ASSESSMENT ON UNITED STATES DEFENSE IMPLICATIONS 
OF CHINA’S EXPANDING GLOBAL ACCESS. 
(a) ASSESSMENT.— 
(1) IN GENERAL.—The Secretary of Defense, in consultation 
with the Secretary of State, shall assess the foreign military 
and non-military activities of the People’s Republic of China 
that could affect the regional and global national security and 
defense interests of the United States. 
(2) ELEMENTS.—The assessment required by paragraph (1) 
shall evaluate the following: 
(A) The expansion by China of military and non-mili-
tary means in the Indo-Asia-Pacific region and globally, 
including influence campaigns, loans, access to military 
equipment, military training, tourism, media, investment
H. R. 2810—405 
projects, infrastructure, and access to foreign ports and 
military bases, and whether such means could affect United 
States national security or defense interests, including 
operational access. 
(B) The implications, if any, of such means for the 
military force posture, access, training, and logistics of 
both the United States and China. 
(C) The United States strategy and policy for miti-
gating any harmful effects resulting from such means. 
(D) The resources required to implement such strategy 
and policy, and the plan to address and mitigate any gaps 
in capabilities or resources necessary for such implementa-
tion of the policy and strategy. 
(E) Measures to bolster the roles of allies, partners, 
and other countries to implement such strategy and policy. 
(F) Any other matters the Secretary of Defense or 
the Secretary of State determines to be appropriate. 
(3) REPORT REQUIRED.— 
(A) IN GENERAL.—Not later than 120 days after the 
date of the enactment of this Act, the Secretary of Defense, 
in coordination with the Secretary of State, shall submit 
to the congressional defense committees, the Committee 
on Foreign Relations of the Senate, and the Committee 
on Foreign Affairs of the House of Representatives a report 
on the assessment required under subsection (b). 
(B) FORM.—The report required by this paragraph shall 
be submitted in unclassified form, but may contain a classi-
fied annex. 
SEC. 1259C. AGREEMENT SUPPLEMENTAL TO COMPACT OF FREE 
ASSOCIATION WITH PALAU. 
(a) APPROVAL OF AGREEMENT SUPPLEMENTAL TO COMPACT.— 
(1) IN GENERAL.—Subject to the availability of appropria-
tions that meet the total financial obligations for such purpose, 
the Compact Review Agreement and appendices signed by the 
United States and the Republic of Palau on September 3, 
2010, in connection with section 432 of the Compact of Free 
Association with Palau (Public Law 99–658; 48 U.S.C. 1931 
note) are approved. 
(2) FUNDING SCHEDULE.—The Compact Review Agreement 
includes a funding schedule that is to be modified by the 
parties to the Compact Review Agreement, and such funding 
schedule (as so modified) is approved. The Compact Review 
Agreement, appendices, and funding schedule (as so modified) 
are referred to hereinafter as the ‘‘Agreement’’. 
(b) STATUS OF PRIOR YEAR PAYMENTS.—Amounts provided to 
the Government of Palau by the Government of the United States 
in fiscal years 2011 through 2017 shall also be considered as funding 
to implement the Agreement. 
(c) EXTENSION OF EFFECTIVE DATE.—Section 105(f)(1)(B)(ix) of 
the Compact of Free Association Amendments Act of 2003 (48 
U.S.C. 1921d(f)(1)(B)(ix)) is amended by striking ‘‘2009’’ and 
inserting ‘‘2024’’.
H. R. 2810—406 
SEC. 1259D. STUDY ON UNITED STATES INTERESTS IN THE FREELY 
ASSOCIATED STATES. 
(a) STUDY REQUIRED.—The Secretary of Defense shall enter 
into an agreement with an appropriate independent entity to con-
duct a study and assessment of United States security and foreign 
policy interests in the Freely Associated States of the Republic 
of Palau, the Republic of the Marshall Islands, and the Federated 
States of Micronesia. 
(b) ELEMENTS.—The study required pursuant to subsection (a) 
shall address the following: 
(1) The role of the Compacts of Free Association in pro-
moting United States defense and foreign policy interests, 
including the United States defense posture and plans. 
(2) The status of the obligations of the United States and 
the Freely Associated States under the Compacts of Free 
Association. 
(3) The economic assistance practices of the People’s 
Republic of China in the Freely Associated States, and the 
implications of such practices for United States defense and 
foreign policy interests in the Freely Associated States and 
the Pacific region. 
(4) The economic assistance practices of other countries 
in the Freely Associated States, as determined by the Comp-
troller General, and the implications of such practices for 
United States defense and foreign policy interests in the Freely 
Associated States and the Pacific region. 
(5) Any other matters the Secretary considers appropriate 
for purposes of the study. 
(c) DEPARTMENT OF DEFENSE SUPPORT.—The Secretary shall 
provide the entity conducting the study pursuant to subsection 
(a) with timely access to appropriate information, data, resources, 
and analysis so that the entity may conduct a thorough and inde-
pendent assessment of the matters covered by the study, including 
the matters specified in subsection (b). 
(d) REPORT.— 
(1) IN GENERAL.—Not later than December 1, 2018, the 
Secretary shall submit to the congressional defense committees 
a report setting forth the results of the study conducted pursu-
ant to subsection (a). 
(2) FORM.—The report required by paragraph (1) shall be 
submitted in unclassified for, but may include a classified 
annex. 
Subtitle G—Reports 
SEC. 1261. MODIFICATION OF ANNUAL REPORT ON MILITARY AND 
SECURITY DEVELOPMENTS INVOLVING THE PEOPLE’S 
REPUBLIC OF CHINA. 
Subsection (b) of section 1202 of the National Defense 
Authorization Act for Fiscal Year 2000 (Public Law 106–65; 10 
U.S.C. 113 note), as most recently amended by section 1271 of 
the National Defense Authorization Act for Fiscal Year 2017 (Public 
Law 114–328; 130 Stat. 2538), is further amended by adding at 
the end the following: 
‘‘(23) Any Chinese laws, regulations, or policies that could 
jeopardize the economic security of the United States.’’.