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(9) in view of the gravity of European arms sales to the People's Republic of China, which have

not abated, believes it is necessary to make provision

for greater scrutiny and oversight with respect to those areas of international armament cooperation that present increased levels of risk to the security interests of the United States and to authorize appropriate measures which the President may drawn on in deterring foreign support for China's military buildup in order to safeguard the national security

interests of the United States and peace and security in East Asia.

13 SEC. 3. REPORT ON FOREIGN MILITARY EXPORTS TO

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CHINA.

(a) REPORT.-The President shall, at the times spec16 ified in subsection (b), transmit to the appropriate con17 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 appro20 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 the Wassenaar Munitions List of July 12, 1996, and subsequent revisions; or

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

(A) any item on the Wassenaar List of Dual Use Goods and Technologies of July 12,

1996, and subsequent revisions; or

(B) any other dual use item if the item is intended, entirely or in part, for use with an

item described in paragraph (1).

(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 transmitted under subsection (a) on account of a par

ticular export, except to the extent that the export may have continued, involved additional transfers, or

was larger, more significant, or different in nature

than described in the previous report;

(2) was engaged solely in an export on behalf

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

States; or

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(3) was engaged in an export which, as determined by the President, would be exempt from the restrictions of section 902(a) of the Foreign Rela

tions Authorization Act, Fiscal Years 1990 and

1991 (Public Law 101-246; 22 U.S.C. 2151 note), if the export were subject to the jurisdiction of the

United States, by reason of the issuance of a report under section 902(b) of such Act.

(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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COUNTRIES

PARTICIPATING IN UNITED

STATES DEFENSE COOPERATIVE PROJECTS;

CERTAIN LICENSE REQUIREMENTS.

(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 re19 search, design, and development arising from cooperative 20 research and development projects with foreign govern21 ments and foreign persons who may also transfer arms 22 and related technology to the People's Republic of China. 23 (b) REPORT.-The President shall, at the times spec24 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

spect to which the United States is carrying out a

cooperative project described in subsection (d) and

whose policies or practices, on or after the date of the enactment of this Act, permit the export of any

item described in paragraph (1), or subparagraph

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

(2) describes the cooperative projects and policies or practices referred to in paragraph (1) of every foreign government identified under such paragraph.

(c) TIMING OF REPORT.-The report required under 13 subsection (b)

(1) shall be transmitted not later than 180 days after the date of the enactment of this Act and not

later than the end of each 12-month period thereafter; and

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(2) may be included in the report required under section 3, as the President determines appropriate.

COOPERATIVE PROJECTS.-The cooperative

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

2 States Code.

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(e) LICENSE REQUIREMENTS.

(1) REQUIREMENT.-Notwithstanding any other provision of law, a license under section 38 of

the Arms Export Control Act (22 U.S.C. 2778) shall be required for the export of defense articles or defense services by any person who is not an officer or employee of the Government of the United States in furtherance of a cooperative project described in subsection (d) with a country identified in a report

transmitted under subsection (b).

(2)

CONGRESSIONAL

NOTIFICATION.-The

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issuance of a license pursuant to paragraph (1) shall

be subject to the same requirements as are applicable to the export of items described in section 36(c) of the Arms Export Control Act (22 U.S.C. 2776(c))

(without regard to the dollar amount requirements

relating to contracts contained in such section), including the transmittal of information and the appli

cation of congressional review procedures in accordance with such section.

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