[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 770 Introduced in Senate (IS)]
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118th CONGRESS
1st Session
S. 770
To provide for the loan and lease of defense articles to the Government
of Taiwan, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 9, 2023
Mrs. Blackburn (for herself, Mr. Scott of Florida, and Mr. Rubio)
introduced the following bill; which was read twice and referred to the
Committee on Foreign Relations
_______________________________________________________________________
A BILL
To provide for the loan and lease of defense articles to the Government
of Taiwan, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Taiwan Democracy Defense Lend-Lease
Act of 2023''.
SEC. 2. LOAN AND LEASE OF DEFENSE ARTICLES TO GOVERNMENT OF TAIWAN.
(a) Authority To Lend or Lease Defense Articles to Government of
Taiwan.--
(1) Authority.--Notwithstanding section 503(b)(3) of the
Foreign Assistance Act of 1961 (22 U.S.C. 2311(b)(3)) or
section 61 of the Arms Export Control Act (22 U.S.C. 2796), the
President may lend or lease defense articles to the Government
of Taiwan to assist in the bolstering of the defensive
capabilities of such Government or the protection of the
citizen population of Taiwan from potential aggression carried
out by the People's Liberation Army of China against Taiwan
(including through one or more of the means described in
paragraph (2)) if, as a condition of such loan or lease, the
President requires--
(A) the payment by the Government of Taiwan of the
cost of restoring or replacing the defense article, in
the case that the defense article is damaged; and
(B) the payment by the Government of Taiwan of an
amount equal to the replacement cost (less any
depreciation in the value) of the defense article, in
the case that the defense article is lost or destroyed.
(2) Means of aggression by people's liberation army.--The
means described in this paragraph are the following:
(A) The full or partial naval blockade of Taiwan.
(B) An amphibious assault and ground invasion of
Taiwan.
(C) A missile strike (whether conducted alone or as
a part of a broader campaign).
(D) Kinetic or non-kinetic operations against
military targets or critical infrastructure in Taiwan.
(E) A seizure, or attempted seizure, of one or more
of the outlying islands controlled by Taiwan.
(3) Defense services and defense construction services.--
(A) In general.--The President may finance the
procurement of defense services and design and
construction services by the Government of Taiwan in
connection with a loan or lease of a defense article to
such Government under paragraph (1), if, as a condition
of such financing, the President requires that, not
later than 12 years after the date on which the
agreement with the Government of Taiwan for such
financing is signed on behalf of the United States
Government, the Government of Taiwan pay to the United
States Government (in United States dollars) an amount
equal to the sum of--
(i) the value of such services; and
(ii) any interest on the unpaid balance of
the obligation for payment under clause (i), at
a rate that, except as provided in subparagraph
(B), is equivalent to the average interest
rate, as of the last day of the month preceding
the date on which such agreement is signed,
that the United States Government pays on
outstanding marketable obligations of
comparable maturity.
(B) Exception to interest rate requirement.--If the
President submits to Congress a certification
containing a determination that national security
requires a lesser rate of interest than the rate
calculated pursuant to clause (ii) of subparagraph (A),
a justification for such determination, and an
identification of such lesser rate, the lesser rate so
identified shall apply in lieu of the rate calculated
pursuant to such clause.
(b) Delegation of Authority.--The President may delegate the
authority under subsection (a) only to an official appointed by the
President by and with the advice and consent of the Senate.
(c) Procedures for Delivery of Defense Articles.--Not later than 60
days after the date of the enactment of this Act, the President shall
establish expedited procedures for the delivery of any defense article
loaned or leased to the Government of Taiwan under subsection (a) to
ensure the timely delivery of the defense article to such Government.
(d) Report on Determination of Defense Needs of Taiwan.--
(1) Report.--Not later than 90 days after the date of the
enactment of this Act, the Secretary of Defense, in
collaboration with the Commander of the United States Indo-
Pacific Command, shall submit to Congress a report on the
potential loan and lease of defense articles to the Government
of Taiwan under subsection (a). The report shall include the
following elements:
(A) An initial assessment of the defense articles
that are appropriate for such loan or lease.
(B) An assessment of any supply chain or other
logistical challenges associated with the loan or lease
of defense articles identified pursuant to subparagraph
(A).
(C) A discussion of expected timeframes for the
provision to the Government of Taiwan of defense
articles identified pursuant to subparagraph (A),
including--
(i) expected timelines for the delivery of
such defense articles; and
(ii) expected timelines for the full
integration of such defense articles by the
military of Taiwan, such that the military of
Taiwan is able to effectively use defense
articles so delivered in the event of a
conflict with the People's Republic of China.
(D) Such other matters as the Secretary may
consider appropriate.
(2) Form.--The report under paragraph (1) shall be
submitted in unclassified form, but may include a classified
annex.
(e) Definitions.--In this section, the terms ``defense article'',
``defense service'', and ``design and construction services'' have the
meanings given those terms in section 47 of the Arms Export Control Act
(22 U.S.C. 2794).
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