HR 7440 IH1S 
United States policy toward Hong Kong. This 
will remain equally true after June 30, 1997.’’; 
(2) although the United States recognizes that, 
under the Joint Declaration, the Government of 
China ‘‘resumed the exercise of sovereignty over 
Hong Kong with effect on 1 July 1997’’, the United 
States supports the autonomy of Hong Kong in fur-
therance of the United States-Hong Kong Policy Act 
of 1992 and the Hong Kong Human Rights and De-
mocracy Act of 2019 and advances the desire of the 
people of Hong Kong to continue the ‘‘one country, 
two systems’’ regime, in addition to other obligations 
promulgated by China under the Joint Declaration 
and the Basic Law; 
(3) in order to support the benefits and protec-
tions that Hong Kong has been afforded by the Gov-
ernment of China under the Joint Declaration and 
the Basic Law, the United States should establish a 
clear and unambiguous set of penalties with respect 
to foreign persons determined by the Secretary of 
State, in consultation with the Secretary of the 
Treasury, to be involved in the contravention of the 
obligations of China under the Joint Declaration and 
the Basic Law and the financial institutions 
transacting with those foreign persons; 
VerDate Sep 11 2014 
01:26 Jul 24, 2020
Jkt 099200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H7440.IH
H7440
pbinns on DSKJLVW7X2PROD with BILLS
HR 7440 IH1S 
(4) the Secretary of State should provide an un-
classified assessment of the reason for imposition of 
certain economic penalties on entities, so as to per-
mit a clear path for the removal of economic pen-
alties if the sanctioned behavior is reversed and 
verified by the Secretary of State; 
(5) relevant Federal agencies should establish a 
multilateral sanctions regime with respect to foreign 
persons involved in the contravention of the obliga-
tions of China under the Joint Declaration and the 
Basic Law; and 
(6) in addition to the penalties on foreign per-
sons, and financial institutions transacting with 
those foreign persons, for the contravention of the 
obligations of China under the Joint Declaration and 
the Basic Law, the United States should take steps, 
in a time of crisis, to assist permanent residents of 
Hong Kong who are persecuted or fear persecution 
as a result of the contravention by China of its obli-
gations under the Joint Declaration and the Basic 
Law to become eligible to obtain lawful entry into 
the United States. 
VerDate Sep 11 2014 
01:26 Jul 24, 2020
Jkt 099200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H7440.IH
H7440
pbinns on DSKJLVW7X2PROD with BILLS
HR 7440 IH1S 
SEC. 5. IDENTIFICATION OF FOREIGN PERSONS INVOLVED 
IN THE EROSION OF THE OBLIGATIONS OF 
CHINA UNDER THE JOINT DECLARATION OR 
THE BASIC LAW AND FOREIGN FINANCIAL IN-
STITUTIONS THAT CONDUCT SIGNIFICANT 
TRANSACTIONS WITH THOSE PERSONS. 
(a) IN GENERAL.—Not later than 90 days after the 
date of the enactment of this Act, if the Secretary of 
State, in consultation with the Secretary of the Treasury, 
determines that a foreign person is materially contributing 
to, has materially contributed to, or attempts to materially 
contribute to the failure of the Government of China to 
meet its obligations under the Joint Declaration or the 
Basic Law, the Secretary of State shall submit to the ap-
propriate congressional committees and leadership a re-
port that includes— 
(1) an identification of the foreign person; and 
(2) a clear explanation for why the foreign per-
son was identified and a description of the activity 
that resulted in the identification. 
(b) IDENTIFYING FOREIGN FINANCIAL INSTITU-
TIONS.—Not earlier than 30 days and not later than 60 
days after the Secretary of State submits to the appro-
priate congressional committees and leadership the report 
under subsection (a), the Secretary of the Treasury, in 
consultation with the Secretary of State, shall submit to 
VerDate Sep 11 2014 
01:26 Jul 24, 2020
Jkt 099200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H7440.IH
H7440
pbinns on DSKJLVW7X2PROD with BILLS
HR 7440 IH1S 
the appropriate congressional committees and leadership 
a report that identifies any foreign financial institution 
that knowingly conducts a significant transaction with a 
foreign person identified in the report under subsection 
(a). 
(c) EXCLUSION OF CERTAIN INFORMATION.— 
(1) INTELLIGENCE.—The Secretary of State 
shall not disclose the identity of a person in a report 
submitted under subsection (a) or (b), or an update 
under subsection (e), if the Director of National In-
telligence determines that such disclosure could com-
promise an intelligence operation, activity, source, or 
method of the United States. 
(2) LAW
ENFORCEMENT.—The Secretary of 
State shall not disclose the identity of a person in 
a report submitted under subsection (a) or (b), or an 
update under subsection (e), if the Attorney General, 
in coordination, as appropriate, with the Director of 
the Federal Bureau of Investigation, the head of any 
other appropriate Federal law enforcement agency, 
and the Secretary of the Treasury, determines that 
such disclosure could reasonably be expected— 
(A) to compromise the identity of a con-
fidential source, including a State, local, or for-
eign agency or authority or any private institu-
VerDate Sep 11 2014 
01:26 Jul 24, 2020
Jkt 099200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H7440.IH
H7440
pbinns on DSKJLVW7X2PROD with BILLS
HR 7440 IH1S 
tion that furnished information on a confiden-
tial basis; 
(B) to jeopardize the integrity or success 
of an ongoing criminal investigation or prosecu-
tion; 
(C) to endanger the life or physical safety 
of any person; or 
(D) to cause substantial harm to physical 
property. 
(3) NOTIFICATION REQUIRED.—If the Director 
of National Intelligence makes a determination 
under paragraph (1) or the Attorney General makes 
a determination under paragraph (2), the Director 
or the Attorney General, as the case may be, shall 
notify the appropriate congressional committees and 
leadership of the determination and the reasons for 
the determination. 
(d) EXCLUSION OR REMOVAL OF FOREIGN PERSONS 
AND FOREIGN FINANCIAL INSTITUTIONS.— 
(1) FOREIGN
PERSONS.—The President may 
exclude a foreign person from the report under sub-
section (a), or an update under subsection (e), or re-
move a foreign person from the report or update 
prior to the imposition of sanctions under section 
6(a) if the material contribution (as described in 
VerDate Sep 11 2014 
01:26 Jul 24, 2020
Jkt 099200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H7440.IH
H7440
pbinns on DSKJLVW7X2PROD with BILLS
HR 7440 IH1S 
subsection (g)) that merited inclusion in that report 
or update— 
(A) does not have a significant and lasting 
negative effect that contravenes the obligations 
of China under the Joint Declaration and the 
Basic Law; 
(B) is not likely to be repeated in the fu-
ture; and 
(C) has been reversed or otherwise miti-
gated through positive countermeasures taken 
by that foreign person. 
(2) FOREIGN
FINANCIAL
INSTITUTIONS.—The 
President may exclude a foreign financial institution 
from the report under subsection (b), or an update 
under subsection (e), or remove a foreign financial 
institution from the report or update prior to the 
imposition of sanctions under section 7(a) if the sig-
nificant transaction or significant transactions of the 
foreign financial institution that merited inclusion in 
that report or update— 
(A) does not have a significant and lasting 
negative effect that contravenes the obligations 
of China under the Joint Declaration and the 
Basic Law; 
VerDate Sep 11 2014 
01:26 Jul 24, 2020
Jkt 099200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H7440.IH
H7440
pbinns on DSKJLVW7X2PROD with BILLS