TEXT: SUMMARY OF "THE CHINA POLICY ACT OF 1997"
(Bill would impose broad range on sanctions on China)

Washington -- Nine U.S. senators, including the chairman of the Senate Foreign Relations Committee, introduced a bill September 11 to impose a broad range of sanctions on the People's Republic of China.

"The China Policy Act of 1997" would among other actions:

-- deny visas to Chinese government officials involved in political and religious persecution;

-- require U.S. Representatives at multilateral banks to vote "no" on loans to China;

-- require the president to begin consultations with major U.S. allies and trading partners to encourage them to adopt similar measures contained in this bill and to work with our allies to vote against loans for China at multilateral development banks;

-- target sanctions against People's Liberation Army (PLA) companies involved in the illegal sale of AK-47 rifles in the U.S.; and

-- establish a mechanism to apply sanctions on additional PLA companies based on certain specific actions, including weapons proliferation, illegal arms sales in U.S., and military and political espionage in the U.S.

These sanctions, according to the summary, would remain in effect for five years. The bill includes provisions for a review of the sanctions within the five-year period upon the occurrence of one or more of the following events:

"1) People's Republic of China's entry into the WTO on commercially viable terms;

"2) President's certification of PRC's full implementation of international proliferation standards and agreements;

"3) President's certification that PRC is actively and effectively combating all forms of religious persecution;

"4) PRC re-evaluation of Tiananmen Square massacre;

"5) Publication by the PRC of a National Security White Paper describing its intentions internationally; or

"6) President's certification that the PRC has taken concrete steps towards improving overall human rights conditions in China and Tibet, including the release of political prisoners; improving prison conditions and providing prisoners with adequate medical care; and full compliance with the international human rights accords to which the PRC is a signatory."

Following is summary of the bill, provided by the office of Senator Spencer Abraham (Republican - Michigan):

(begin text)

SUMMARY OF THE CHINA POLICY ACT OF 1997

Introduced by Senators Spencer Abraham, Russ Feingold, Tim Hutchinson, Paul Coverdell, Mike DeWine, John Ashcroft, Sam Brownback, Connie Mack, and Jesse Helms.

Title I: Sanctions

-- Deny visas to Chinese government officials involved in political and religious persecution. This measure would deny visas to high ranking officials who are employed by the Public Security Bureau (the state police), the Religious Affairs Bureau, China's family planning apparatus, the People's Liberation Army (PLA), and those found to be materially involved in the ordering or carrying out of the massacre of Chinese students in Tiananmen Square. The President is granted waiver authority that can be exercised, in writing, each time a proscribed individual is to enter this country that explains why awarding such visas overrides U.S. concerns about China's human rights practices past and present.

-- Require U.S. Representatives at multilateral banks to vote "no" on loans to China. Exception for loans related to environmental improvements and safeguards, famine, and natural disaster relief. China received approximately $3 billion in World Bank loans in the most recent fiscal year. While receiving this foreign aid, the Chinese military budget increased by 12.7 percent. Between 1985 and 1995 the United States supported 111 of 183 loans approved by the World Rank Group and 15 of 92 loans that the Asian Development Bank approved. The bill also requires the Secretary of Treasury to oppose and instruct the U.S. executive director of the World Bank to oppose any change in the World Bank's rules that limit the total share of the bank's lending that can be made in any one country.

-- Require the President to begin consultations with major U.S. allies and trading partners to encourage them to adopt similar measures contained in this bill and to work with our allies to vote against loans for China at multilateral development banks. Within 60 days of a G-7 meeting, the President shall submit a report to Congress on the progress of this effort.

-- Targeted sanctions against People's Liberation Army (PLA) companies involved in the illegal sale of AK-47 rifles in the U.S. China North Industries Group (NORINCO) and the PLA-owned company China Poly Group (POLY) will be prohibited from 1) exporting to, and maintaining a physical presence in, the United States; 2) receiving loans from the Export-Import Bank; and 3) receiving contracts for goods or services from the U.S. government for a period of one year. The attempted illegal sale of AK-47 machine guns to street gangs in California warrant these targeted sanctions against these firms.

-- The bill establishes a mechanism to apply sanctions on additional PLA companies based on certain specific actions, including weapons proliferation, illegal arms sales in U.S., and military and political espionage in the U.S. The Director of Central Intelligence and the Director of the Federal Bureau of Investigation, in separate annual reports, shall identify entities owned in part or wholly by the People's Liberation Army who have engaged in proliferation of nuclear or chemical weapons, the illegal importation of weapons to the U.S., or unlawful military intelligence collection or espionage in the U.S. Such entities will prohibited from exporting to, or maintaining a physical presence in the U.S., receiving loans from the Export-Import Bank, and receiving contracts from the U.S. government for a period of one year.

-- Sanctions remain in effect for 5 years. The bill includes a Sense of Congress that the sanctions in the China Policy Act shall be reviewed by Congress within the 5 year period upon the occurrence of one or more of the following events: 1) People's Republic of China's entry into the WTO on commercially viable terms; 2) President's certification of PRC's full implementation of international proliferation standards and agreements; 3) President's certification that PRC is actively and effectively combating all forms of religious persecution; 4) PRC re-evaluation of Tiananmen Square massacre; 5) Publication by the PRC of a National Security White Paper describing its intentions internationally; or 6) President's certification that the PRC has taken concrete steps towards improving overall human rights conditions in China and Tibet, including the release of political prisoners; improving prison conditions and providing prisoners with adequate medical care; and full compliance with the international human rights accords to which the PRC is a signatory.

Title II: Human Rights, Religious Freedom, and Democracy

-- Congressional findings detailing the Chinese government's jailing of Political dissidents, persecution of religious groups, human rights violations in Tibet and coercive family planning practices.

-- Combats slave labor and "reeducation" centers. The bill calls for stricter enforcement of the ban against the sale of products produced in slave labor camps; appropriations to U.S. Customs to increase monitoring; require reporting and advocacy requirements; and a Sense of Congress urging renegotiation of prison labor memorandum of understanding with China.

-- Authorize an additional $5 million for international broadcasting to China, including Radio Free Asia and the Voice of America to expand broadcast hours in multiple Chinese dialects, Tibetan, and other languages spoken in China.

-- Authorize additional $2 million in funding for National Endowment for Democracy programs in China.

-- Authorize additional $2 million of funding for existing United States Information Agency student, cultural, and legislative exchange programs between the U.S. and China.

-- Terminate the East-West Center, This center funds cooperative programs of study, research and training between the U.S. and Asian Pacific nations. However, the resources of the State Department, which maintains a network of embassies and consulates in Asian Pacific countries, should be more than sufficient to promote good relations with these countries. Eliminating this $10 million program offsets the spending increases proposed in the bill.

-- Require U.S. contractors who receive international family planning funds from the U.S. to report on their organization's activities in China.

-- Sense of Congress concerning multilateral efforts to address China's human rights record.

-- Sense of Congress that China should abide by the 1984 Sino-British Joint Declaration on Hong Kong.

Title III: National Security Matters

-- Congressional findings on PRC's Proliferation of ballistic missiles, weapons of mass destruction, destabilizing advanced conventional weapons, and evasion of U.S. export controls.

-- Tighten U.S. export licensing requirements on super computers sold to China. Current regulation only requires an export license for mid-range supercomputers to countries such as China with only a certification, by the exporting firm, that the end-use is not militarily-related. This provision requires an export license for any mid-range Supercomputers (currently 2000-7000 MTOP range, but amendable by the Secretary of Commerce) sold to China which the Departments of Defense, State, Energy, and Commerce, and the Arms Control and Disarmament Agency do not unanimously agree to export without a license. This provision is a modified version of the Spence-Dellums amendment to the House FY 98 DoD Authorization bill.

-- Protects against dual-use export diversion from Hong Kong. The recent diversion of a Sun Microsystems Supercomputer from a Hong Kong importer to a military end-user in the People's Republic of China highlights the potential problems with having dual-use technology exports to Hong Kong being treated more liberally than such exports to the PRC. This provision would deny licenses for export of items on the U.S. Munitions List and the Commerce Control List to Hong Kong if U.S. officials are denied access to conduct pre-license checks verifying the end-user. It will also require that if U.S. officials are denied access for post-shipment verification checks, or if an actual diversion of dual-use items takes place from Hong Kong to the PRC, then Hong Kong will thereafter be placed in the same export control category as the PRC.

-- A finding that China violated the Iran-Iraq Non Proliferation Act with the export of C-802 missiles to Iran, and a requirement on the implementation of this Act's sanctions, The Commander of the US Navy's Fifth Fleet in the Persian Gulf has called the Iranian acquisition of C-802 cruise missiles a direct threat to the 15,000 US servicemen stationed in the area. Iran acquired these missiles from China, in direct contravention of the Iran-Iraq Nonproliferation Act (McCain-Gore Act). However, the Administration did not implement the sanctions called for in the Act.

-- Limiting transfers of sensitive equipment and technology by the PRC. Require within 60 days a report detailing State Department's sanctions determination process for each allegation against China in the area of proliferation, and a schedule for initiating sanctions determination process where the process has not been initiated.

-- Sunshine requirement on PLA companies. On an annual basis, the U.S. Government shall publish a list of all companies owned in part or wholly by the People's Liberation Army (PLA) of the PRC who export to, or have an office in, the United States. In addition, require a report on PLA military modernization.

-- Require enhanced monitoring of Chinese intelligence activities in the U.S., including a report on such activities and a report on political and military espionage.

-- Require a bilateral U.S.-Taiwan study of establishing theater missile defense in the Pacific Rim.

-- Sense of the Congress that the current level of U.S. forces in Asia are vital to continued peace and stability in the region and should only be reduced with a clear understanding of their impact on U.S. treaty obligations and the continued ability of the United States to deter potential aggression in the region.

-- Sense of Congress that the President shall initiate negotiations with the PRC and other Asian countries to establish a "Helsinki Commission" for Asia.

Title IV: Trade

-- Sense of Congress that Taiwan should enter the World Trade Organization (WTO) as soon as it meets the established criteria.

Title V: Human Rights and Religious Freedom Worldwide

-- The legislation mandates additional and extensive training for U.S. asylum officers world-wide in recognizing religious persecution.

-- Enhanced reporting of human rights violations and religious persecution around the world. Increased publicizing of political and religious persecution world-wide through annual reports by the State Department, publication of list of individuals involved in religious persecution, and establishment of a Prisoner Information Registry.

September 11, 1997

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