COATS AMENDMENTS NOS. 2823-2825 (Senate - June 22, 1998)

[Page: S6779]

(Ordered to lie on the table.)

Mr. COATS submitted three amendments intended to be proposed by him to the bill, S. 2057, supra; as follows:

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Amendment No. 2825


On page 268, between lines 8 and 9, insert the following:

SEC. 1064. DEBARMENT OF COMPANIES TRANSFERRING SENSITIVE TECHNOLOGY TO THE PEOPLE'S REPUBLIC OF CHINA FROM CONTRACTING WITH THE DEPARTMENT OF DEFENSE.
(a) Findings: Congress makes the following findings:

(1) The People's Republic of China is an authoritarian state that has acted and continues to act in a manner threatening to her neighbors and the United States.

(2) A nuclear-capable power, China is believed to have strategic missiles targeted at the United States.

(3) China launched ballistic missiles during the Spring of 1996 over portions of Taiwan in a show of force calculated to influence the presidential elections in Taiwan

(4) Responding to United States affirmation of support for Taiwan, a Chinese official in 1996 reportedly threatened a United States city with destruction should the United States act to defend Taiwan from an attack.

(5) Despite denials of hegemonic intent and criticism of other nations for allegedly pursuing hegemony in the region, China has attacked her neighbors, India and Vietnam, and threatened others, notably the Philippines, over disputed territory.

(6) Having brutally subjugated a long-independent nation, Tibet, in 1950, China continues to pursue policies that are clearly inimical to the Tibetan people. China systematically violates the most basic human rights though the denial of religious freedom, the jailing and persecution of the political opposition, and the immoral policy of forced abortion to control population growth.

(7) China is a proliferator of ballistic missile technology and nuclear technology.

(8) China supported the development by Pakistan of ballistic missiles and nuclear weapons.

(9) China supports missile development programs in Libya and Iran.

(10) China provided cruise missiles to Iran that currently threaten commercial shipping and United States naval vessels in the Persian Gulf.

(11) China appears to have a policy aimed at coercing United States companies as well as companies in over countries to transfer technology in order to obtain market access. According to a 1997 press report, `no country makes such demands across as wide a variety of industries as China does.'. This has led one Administration official to characterize as blackmail the insistence of China that `to sell here, you have to locate here, and give us technology.'.

(12) A number of questionable transfers of sensitive United States technology to China have occurred.

(13) In 1993, an American-backed joint venture transferred sensitive communications technology to a Chinese company headed by an official of the People's Liberation Army, reportedly over the objection of various officials of the Department of Defense and the National Security Agency.

(14) Advanced dual-use machine tools were sold to China in 1994 over the objections of a senior analyst of the Defense Technology Security Agency. These machine tools subsequently were found at a Chinese missile plant in violation of the export license.

(15) Two United States defense contractors appear to have transferred sensitive technical information to China in 1996 that may have enabled China to dramatically increase the reliability and capabilities of its space launch vehicles and strategic missiles.
(b) Debarment: (1) The Secretary of Defense shall debar from contracting with the Department of Defense, for a period of time provided for under paragraph (2), any company that has transferred sensitive technology to the People's Republic of China without the prior authorization of the United States Government.
(2) Debarment under paragraph (1) shall be for a period determined appropriate by the Secretary, but not less than five years.
(3) Debarment shall commence under paragraph (1) as of the first day of the fiscal year commencing after the later of the date of the determination by the Secretary that the transfer in question occurred without prior authorization of the United States Government.
(c) Definitions: In this section:

(1) The term `debar' has the meaning given that term in section 2393(c) of title 10, United States Code.

(2) The term `sensitive technology' means any military or dual-use technologies or hardware covered by the Export Administration Act of 1979, and the regulations implementing that Act.

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