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Public
Law 96-8 96th Congress
An
Act
To help
maintain peace, security, and stability in the Western Pacific
and to promote the foreign policy of the United States by
authorizing the continuation of commercial, cultural, and
other relations between the people of the United States and
the people on Taiwan, and for other purposes.
Be it
enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SHORT
TITLE
SECTION
1. This Act may be cited as the "Taiwan Relations Act".
FINDINGS
AND DECLARATION OF POLICY
SEC.
2.
(a) The President- having terminated governmental relations
between the United States and the governing authorities on
Taiwan recognized by the United States as the Republic of
China prior to January 1, 1979, the Congress finds that the
enactment of this Act is necessary--
(1)
to help maintain peace, security, and stability in the Western
Pacific; and
(2)
to promote the foreign policy of the United States by authorizing
the continuation of commercial, cultural, and other relations
between the people of the United States and the people on
Taiwan.
(b) It is
the policy of the United States--
(1)
to preserve and promote extensive, close, and friendly commercial,
cultural, and other relations between the people of the United
States and the people on Taiwan, as well as the people on
the China mainland and all other peoples of the Western Pacific
area;
(2)
to declare that peace and stability in the area are in the
political, security, and economic interests of the United
States, and are matters of international concern;
(3)
to make clear that the United States decision to establish
diplomatic relations with the People's Republic of China
rests upon the expectation that the future of Taiwan will
be determined by peaceful means;
(4)
to consider any effort to determine the future of Taiwan
by other than peaceful means, including by boycotts or embargoes,
a threat to the peace and security of the Western Pacific
area and of grave concern to the United States;
(5)
to provide Taiwan with arms of a defensive character; and
(6)
to maintain the capacity of the United States to resist
any resort to force or other forms of coercion that would
jeopardize the security, or the social or economic system,
of the people on Taiwan.
(c) Nothing contained in this Act shall contravene the interest
of the United States in human rights, especially with respect
to the human rights of all the approximately eighteen million
inhabitants of Taiwan. The preservation and enhancement of
the human rights of all the people on Taiwan are hereby reaffirmed
as objectives of the United States.
IMPLEMENTATION
OF UNITED STATES POLICY WITH REGARD TO TAIWAN
SEC.
3.
(a) In furtherance of the policy set forth in section 2 of
this Act, the United States will make available to Taiwan
such defense articles and defense services in such quantity
as may be necessary to enable Taiwan to maintain a sufficient
self-defense capability.
(b) The
President and the Congress shall determine the nature and
quantity of such defense articles and services based solely
upon their judgment of the needs of Taiwan, in accordance
with procedures established by law. Such determination of
Taiwan's defense needs shall include review by United States
military authorities in connection with recommendations to
the President and the Congress.
(c) The
President is directed to inform the Congress promptly of any
threat to the security or the social or economic system of
the people on Taiwan and any danger to the interests of the
United States arising therefrom. The President and the Congress
shall determine, in accordance with constitutional processes,
appropriate action by the United States in response to any
such danger.
APPLICATION
OF LAWS; INTERNATIONAL AGREEMENTS
SEC.
4.
(a) The absence of diplomatic relations or recognition shall
not affect the application of the laws of the United States
with respect to Taiwan, and the laws of the United States
shall apply with respect to Taiwan in the manner that the
laws of the United States applied with respect to Taiwan prior
to January 1, 1979.
(b)The
application of subsection (a) of this section shall include,
but shall not be limited to, the following:
(1)
Whenever the laws of the United States refer or relate to
foreign countries, nations, states, governments, or similar
entities, such terms shall include and such laws shall apply
with such respect to Taiwan.
(2)
Whenever authorized by or pursuant to the laws of the United
States to conduct or carry out programs, transactions, or
other relations with respect to foreign countries, nations,
states, governments, or similar entities, the President
or any agency of the United States Government is authorized
to conduct and carry out, in accordance with section 6 of
this Act, such programs, transactions, and other relations
with respect to Taiwan (including, but not limited to, the
performance of services for the United States through contracts
with commercial entities on Taiwan), in accordance with
the applicable laws of the United States.
(3)
(A) The absence of diplomatic relations and recognition
with respect to Taiwan shall not abrogate, infringe,
modify, deny, or otherwise affect in any way any rights
or obligations (including but not limited to those involving
contracts, debts, or property interests of any kind) under
the laws of the United States heretofore or hereafter acquired
by or with respect to Taiwan.
(B) For all purposes under the laws of the United States,
including actions in any court in the United States, recognition
of the People's Republic of China shall not affect in any
way the ownership of or other rights or interests in properties,
tangible and intangible, and other things of value, owned
or held on or prior to December 31, 1978, or thereafter
acquired or earned by the governing authorities on Taiwan.
(4)
Whenever the application of the laws of the United States
depends upon the law that is or was applicable on Taiwan
or compliance therewith, the law applied by the people on
Taiwan shall be considered the applicable law for that purpose.
(5)
Nothing in this Act, nor the facts of the President's action
in extending diplomatic recognition to the People's Republic
of China, the absence of diplomatic relations between the
people on Taiwan and the United States, or the lack of recognition
by the United States, and attendant circumstances thereto,
shall be construed in any administrative or judicial proceeding
as a basis for any United States Government agency, commission,
or department to make a finding of fact or determination
of law, under the Atomic Energy Act of 1954 and the Nuclear
Non-Proliferation Act of 1978, to deny an export license
application or to revoke an existing export license for
nuclear exports to Taiwan.
(6)
For purposes of the Immigration and Nationality Act, Taiwan
may be treated in the manner specified in the first sentence
of section 202(b) of that Act.
(7)
The capacity of Taiwan to sue and be sued in courts in the
United States, in accordance with the laws of the United
States, shall not be abrogated, infringed, modified, denied,
or otherwise affected in any way by the absence of diplomatic
relations or recognition.
(8)
No requirement, whether expressed or implied, under the
laws of the United States with respect to maintenance of
diplomatic relations or recognition shall be applicable
with respect to Taiwan.
(c) For all
purposes, including actions in any court in the United States,
the Congress approves the continuation in force of all treaties
and other international agreements, including multilateral conventions,
entered into by the United States and the governing authorities
on Taiwan recognized by the United States as the Republic of
China prior to January 1, 1979, and in force between them on
December 31, 1978, unless and until terminated in accordance
with law.
(d) Nothing
in this Act may be construed as a basis for supporting the
exclusion or expulsion of Taiwan from continued membership
in any international financial institution or any other international
organization.
OVERSEAS
PRIVATE INVESTMENT CORPORATION
SEC.
5.
(a) During the three-year period beginning on the date of
enactment of this Act, the $1,000 per capita income restriction
in insurance, clause (2) of the second undesignated paragraph
of section 231 of the reinsurance, Foreign Assistance Act
of 1961 shall not restrict the activities of the Overseas
Private Investment Corporation in determining whether to provide
any insurance, reinsurance, loans, or guaranties with respect
to investment projects on Taiwan.
(b) Except
as provided in subsection (a) of this section, in issuing
insurance, reinsurance, loans, or guaranties with respect
to investment projects on Taiwan, the Overseas Private Insurance
Corporation shall apply the same criteria as those applicable
in other parts of the world.
THE
AMERICAN INSTITUTE OF TAIWAN
SEC.
6.
(a) Programs, transactions, and other relations conducted
or carried out by the President or any agency of the United
States Government with respect to Taiwan shall, in the manner
and to the extent directed by the President, be conducted
and carried out by or through--
(1)
The American Institute in Taiwan, a nonprofit corporation
incorporated under the laws of the District of Columbia, or
(2)
such comparable successor nongovermental entity as the President
may designate, (hereafter in this Act referred to as the
"Institute").
(b) Whenever
the President or any agency of the United States Government
is authorized or required by or pursuant to the laws of the
United States to enter into, perform, enforce, or have in force
an agreement or transaction relative to Taiwan, such agreement
or transaction shall be entered into, performed, and enforced,
in the manner and to the extent directed by the President, by
or through the Institute.
(c) To
the extent that any law, rule, regulation, or ordinance of
the District of Columbia, or of any State or political subdivision
thereof in which the Institute is incorporated or doing business,
impedes or otherwise interferes with the performance of the
functions of the Institute pursuant to this Act; such law,
rule, regulation, or ordinance shall be deemed to be preempted
by this Act.
SERVICES
BY THE INSTITUTE TO UNITED STATES CITIZENS ON TAIWAN
SEC.
7.
(a) The Institute may authorize any of its employees on Taiwan--
(1)
to administer to or take from any person an oath, affirmation,
affidavit, or deposition, and to perform any notarial act
which any notary public is required or authorized by law to
perform within the United States;
(2)
To act as provisional conservator of the personal estates
of deceased United States citizens; and
(3)
to assist and protect the interests of United States persons
by performing other acts such as are authorized to be performed
outside the United States for consular purposes by such
laws of the United States as the President may specify.
(b) Acts
performed by authorized employees of the Institute under this
section shall be valid, and of like force and effect within
the United States, as if performed by any other person authorized
under the laws of the United States to perform such acts.
TAX
EXEMPT STATUS OF THE INSTITUTE
SEC.
8.
(a) The Institute, its property, and its income are exempt
from all taxation now or hereafter imposed by the United States
(except to the extent that section 11(a)(3) of this Act requires
the imposition of taxes imposed under chapter 21 of the Internal
Revenue Code of 1954, relating to the Federal Insurance Contributions
Act) or by State or local taxing authority of the United States.
(b) For
purposes of the Internal Revenue Code of 1954, the Institute
shall be treated as an organization described in sections
170(b)(1)(A), 170(c), 2055(a), 2106(a)(2)(A),, 2522(a), and
2522(b).
FURNISHING
PROPERTY AND SERVICES TO AND OBTAINING SERVICES FROM THE INSTITUTE
SEC. 9.
(a) Any agency of the United States Government is authorized
to sell, loan, or lease property (including interests therein)
to, and to perform administrative and technical support functions
and services for the operations of, the Institute upon such
terms and conditions as the President may direct. Reimbursements
to agencies under this subsection shall be credited to the
current applicable appropriation of the agency concerned.
(b) Any
agency of the United States Government is authorized to acquire
and accept services from the Institute upon such terms and
conditions as the President may direct. Whenever the President
determines it to be in furtherance of the purposes of this
Act, the procurement of services by such agencies from the
Institute may be effected without regard to such laws of the
United States normally applicable to the acquisition of services
by such agencies as the President may specify by Executive
order.
(c) Any
agency of the United States Government making funds available
to the Institute in accordance with this Act shall make arrangements
with the Institute for the Comptroller General of the United
States to have access to the; books and records of the Institute
and the opportunity to audit the operations of the Institute.
TAIWAN
INSTRUMENTALITY
SEC.
10.
(a) Whenever the President or any agency of the United States
Government is authorized or required by or pursuant to the
laws of the United States to render or provide to or to receive
or accept from Taiwan, any performance, communication, assurance,
undertaking, or other action, such action shall, in the manner
and to the. extent directed by the President, be rendered
or Provided to, or received or accepted from, an instrumentality
established by Taiwan which the President determines has the
necessary authority under the laws applied by the people on
Taiwan to provide assurances and take other actions on behalf
of Taiwan in accordance with this Act.
(b) The
President is requested to extend to the instrumentality established
by Taiwan the same number of offices and complement of personnel
as were previously operated in the United States by the governing
authorities on Taiwan recognized as the Republic of China
prior to January 1, 1979.
(c) Upon
the granting by Taiwan of comparable privileges and immunities
with respect to the Institute and its appropriate personnel,
the President is authorized to extend with respect to the
Taiwan instrumentality and its appropriate; personnel, such
privileges and immunities (subject to appropriate conditions
and obligations) as may be necessary for the effective performance
of their functions.
SEPARATION
OF GOVERNMENT PERSONNEL FOR EMPLOYMENT WITH THE INSTITUTE
SEC.
11.
(a) (1) Under such terms and conditions
as the President may direct, any agency of the United States
Government may separate from Government service for a specified
period any officer or employee of that agency who accepts
employment with the Institute.
(2) An officer or employee separated by an agency under paragraph
(1) of this subsection for employment with the Institute shall
be entitled upon termination of such employment to reemployment
or reinstatement with such agency(or a successor agency) in
an appropriate position with the attendant rights, privileges,
and benefits with the officer or employee would have had or
acquired had he or she not been so separated, subject to such
time period and other conditions as the President may prescribe.
(3) An officer or employee entitled to reemployment or reinstatement
rights under paragraph (2) of this subsection shall, while
continuously employed by the Institute with no break in continuity
of service, continue to participate in any benefit program
in which such officer or employee was participating prior
to employment by the Institute, including programs for compensation
for job-related death, injury, or illness; programs for health
and life insurance; programs for annual, sick, and other statutory
leave; and programs for retirement under any system established
by the laws of the United States; except that employment with
the Institute shall be the basis for participation in such
programs only to the extent that employee deductions and employer
contributions, as required, in payment for such participation
for the period of employment with the Institute, are currently
deposited in the program's or system's fund or depository.
Death or retirement of any such officer or employee during
approved service with the Institute and prior to reemployment
or reinstatement shall be considered a death in or retirement
from Government service for purposes of any employee or survivor
benefits acquired by reason of service with an agency of the
United States Government.
(4) Any officer or employee of an agency of the United States
Government who entered into service with the Institute on
approved leave of absence without pay prior to the enactment
of this Act shall receive the benefits of this section for
the period of such service.
(b) Any
agency of the United States Government employing alien personnel
on Taiwan may transfer such personnel, with accrued allowances,
benefits, and rights, to the Institute without a break in
service for purposes of retirement and other benefits, including
continued participation in any system established by the laws
of the United States for the retirement of employees in which
the alien was participating prior to the transfer to the Institute,
except that employment with the Institute shall be creditable
for retirement purposes only to the extent that employee deductions
and employer contributions.. as required, in payment for such
participation for the period of employment with the Institute,
are currently deposited in the system' s fund or depository.
(c) Employees
of the Institute shall not be employees of the United States
and, in representing the Institute, shall be exempt from section
207 of title 18, United States Code.
(d)
(1) For purposes of sections 911 and 913 of the Internal Revenue
Code of 1954, amounts paid by the Institute to its employees
shall not be treated as earned income. Amounts received by
employees of the Institute shall not be:included in gross
income, and shall be exempt from taxation, to the extent that
they are equivalent to amounts received by civilian officers
and employees of the Government of the United States as allowances
and benefits which are exempt from taxation under section
912 of such Code.
(2) Except to the extent required by subsection (a)(3) of
this section, service performed in the employ of the Institute
shall not constitute employment for purposes of chapter 21
of such Code and title II of the Social Security Act.
REPORTING
REQUIREMENT
SEC.
12.
(a) The Secretary of State shall transmit to the Congress
the text of any agreement to which the Institute is a party.
However, any such agreement the immediate public disclosure
of which would, in the opinion of the President, be prejudicial
to the national security of the United States shall not be
so transmitted to the Congress but shall be transmitted to
the Committee on Foreign Relations of the Senate and the Committee
on Foreign Affairs of the House of Representatives under an
appropriate injunction of secrecy to be removed only upon
due notice from the President.
(b) For
purposes of subsection (a), the term "agreement" includes-
(1)
any agreement entered into between the Institute and the governing
authorities on Taiwan or the instrumentality established by
Taiwan; and
(2)
any agreement entered into between the Institute and an
agency of the United States Government.
(c) Agreements
and transactions made or to be made by or through the Institute
shall be subject to the same congressional notification, review,
and approval requirements and procedures as if such agreements
and transactions were made by or through the agency of the United
States Government on behalf of which the Institute is acting.
(d) During
the two-year period beginning on the effective date of this
Act, the Secretary of State shall transmit to the Speaker
of the House and Senate House of Representatives and the Committee
on Foreign Relations of Foreign Relations the Senate, every
six months, a report describing and reviewing economic relations
between the United States and Taiwan, noting any interference
with normal commercial relations.
RULES
AND REGULATIONS
SEC.
13.
The President is authorized to prescribe such rules and regulations
as he may deem appropriate to carry out the purposes of this
Act. During the three-year period beginning on the effective
date speaker of this Act, such rules and regulations shall
be transmitted promptly to the Speaker of the House of Representatives
and to the Committee on Foreign Relations of the Senate. Such
action shall.not, however, relieve the Institute of the responsibilities
placed upon it by this Act.'
CONGRESSIONAL
OVERSIGHT
SEC. 14.
(a) The Committee on Foreign Affairs of the House of Representatives,
the Committee on Foreign Relations of the Senate, and other
appropriate committees of the Congress shall monitor-
(1)
the implementation of the provisions of this Act;
(2)
the operation and procedures of the Institute;
(3)
the legal and technical aspects of the continuing relationship
between the United States and Taiwan; and
(4)
the implementation of the policies of the United States
concerning security and cooperation in East Asia.
(b) Such committees shall report, as appropriate, to their
respective Houses on the results of their monitoring.
DEFINITIONS
SEC.
15.
For purposes of this Act-
(1) the
term "laws of the United States" includes any statute, rule,
regulation, ordinance, order, or judicial rule of decision
of the United States or any political subdivision thereof;
and
(2) the
term "Taiwan" includes, as the context may require, the islands
of Taiwan and the Pescadores, the people on those islands,
corporations and other entities and associations created or
organized under the laws applied on those islands, and the
governing authorities on Taiwan recognized by the United States
as the Republic of China prior to January 1, 1979, and any
successor governing authorities (including political subdivisions,
agencies, and instrumentalities thereof).
AUTHORIZATION
OF APPROPRIATIONS
SEC.
16.
In addition to funds otherwise available to carry out the
provisions of this Act, there are authorized to be appropriated
to the Secretary of State for the fiscal year 1980 such funds
as may be necessary to carry out such provisions. Such funds
are authorized to remain available until expended.
SEVERABILITY
OF PROVISIONS
SEC.
17.
If any provision of this Act or the application thereof to
any person or circumstance is held invalid, the remainder
of the Act and the application of such provision to any other
person or circumstance shall not be affected thereby.
EFFECTIVE
DATE
SEC.
18.
This Act shall be effective as of January 1, 1979. Approved
April 10, 1979.
Reprinted with the permission of the Taiwan
Documents Project
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