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H.L.C.

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(9) in view of the gravity of European arms

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sales to the People's Republic of China, which have

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not abated, believes it is necessary to make provision

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for greater scrutiny and oversight with respect to those areas of international armament cooperation

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that present increased levels of risk to the security

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13 SEC. 3. REPORT ON FOREIGN MILITARY EXPORTS TO

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(a) REPORT.—The President shall, at the times spec

16 ified in subsection (b), transmit to the appropriate con

17 gressional committees a report that identifies every person

18 of a member country of the European Union, and any 19 other foreign person the President may consider appro

20 priate, with respect to whom there is credible information

21 indicating that the person, on or after January 1, 2005,

22 exported to—

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(1) the People's Republic of China any item on

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the Wassenaar Munitions List of July 12, 1996, and

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(2) the military, intelligence, or other security forces of the People's Republic of China

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(A) any item on the Wassenaar List of

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Dual Use Goods and Technologies of July 12,

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1996, and subsequent revisions; or

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(B) any other dual use item if the item is

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intended, entirely or in part, for use with an

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item described in paragraph (1).

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(b) TIMING OF REPORT.—The report required under

10 subsection (a) shall be transmitted not later than 180 days

11 after the date of the enactment of this Act and not later

12 than the end of each 12-month period thereafter.

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(c) EXCEPTIONS.—A foreign person is not required

14 to be identified in a report required under subsection (a)

15 if the person

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(1) was identified in a previous report trans

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mitted under subsection (a) on account of a par

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ticular export, except to the extent that the export

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may have continued, involved additional transfers, or

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was larger, more significant, or different in nature

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than described in the previous report;

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(2) was engaged solely in an export on behalf

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of, or in concert with, the Government of the United

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(3) was engaged in an export which, as deter

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mined by the President, would be exempt from the

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restrictions of section 902(a) of the Foreign Rela

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tions Authorization Act, Fiscal Years 1990 and

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1991 (Public Law 101–246; 22 U.S.C. 2151 note),

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if the export were subject to the jurisdiction of the

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United States, by reason of the issuance of a report

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under section 902(b) of such Act.

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(d) FORM.—If the President considers it appropriate,

10 reports transmitted under subsection (a), or appropriate

11 parts thereof, may be transmitted in classified form.

12 SEC. 4. REPORT ON CHINA ARMS TRANSFER POLICIES OF

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(a) STATEMENT OF POLICY.-Congress is concerned

17 with the significant additional risk of unlawful use and

18 diversion of sensitive United States weapons system re

19 search, design, and development arising from cooperative

20 research and development projects with foreign govern

21 ments and foreign persons who may also transfer arms 22 and related technology to the People's Republic of China.

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(b) REPORT.—The President shall, at the times spec

24 ified in subsection (c), transmit to the appropriate con25 gressional committees a report that,

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(1) identifies every foreign government with re

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spect to which the United States is carrying out a

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cooperative project described in subsection (d) and

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whose policies or practices, on or after the date of

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the enactment of this Act, permit the export of any

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item described in paragraph (1), or subparagraph

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(A) or (B) of paragraph (2), of section 3(a); and

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(2) describes the cooperative projects and poli

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cies or practices referred to in paragraph (1) of

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every foreign government identified under such para

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graph.

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(c) TIMING OF REPORT.—The report required under

13 subsection (b)

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(1) shall be transmitted not later than 180 days

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after the date of the enactment of this Act and not

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later than the end of each 12-month period there

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(2) may be included in the report required

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under section 3, as the President determines appro

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priate.
(d) COOPERATIVE PROJECTS.—The cooperative

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22 projects referred to in subsection (b) are projects carried

23 out under section 27 of the Arms Export Control Act (22

24 U.S.C. 2767) or section 2350a, 2358, or a memorandum

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1 of understanding under section 2531 of title 10, United

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other provision of law, a license under section 38 of

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the Arms Export Control Act (22 U.S.C. 2778) shall

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be required for the export of defense articles or de

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fense services by any person who is not an officer or

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employee of the Government of the United States in

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furtherance of a cooperative project described in

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subsection (d) with a country identified in a report

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issuance of a license pursuant to paragraph (1) shall

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be subject to the same requirements as are applicable to the export of items described in section 36(c)

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of the Arms Export Control Act (22 U.S.C. 2776(c))

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(without regard to the dollar amount requirements

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relating to contracts contained in such section), in

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