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Title XII — MATTERS RELATING TO FOREIGN NATIONS

House Conference Report 109-360

SEC. 1211. PROHIBITION ON PROCUREMENTS FROM COMMUNIST CHINESE MILITARY COMPANIES.

(a) Prohibition- The Secretary of Defense may not procure goods or services described in subsection (b), through a contract or any subcontract (at any tier) under a contract, from any Communist Chinese military company.

(b) Goods and Services Covered- For purposes of subsection (a), the goods and services described in this subsection are goods and services on the munitions list of the International Trafficking in Arms Regulations, other than goods or services procured--

(1) in connection with a visit by a vessel or an aircraft of the United States Armed Forces to the People's Republic of China;

(2) for testing purposes; or

(3) for purposes of gathering intelligence.

(c) Waiver Authorized- The Secretary of Defense may waive the prohibition in subsection (a) if the Secretary determines such a waiver is necessary for national security purposes. The Secretary shall notify the congressional defense committees of each waiver made under this subsection.

(d) Definitions- In this section:

(1) The term `Communist Chinese military company' has the meaning provided that term by section 1237(b)(4) of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (50 U.S.C. 1701 note).

(2) The term `munitions list of the International Trafficking in Arms Regulations' means the United States Munitions List contained in part 121 of subchapter M of title 22 of the Code of Federal Regulations.

The House bill contained a provision (sec. 1213) that would prohibit the Secretary of Defense from purchasing goods or services from any foreign person connected to the Chinese military or security forces.

The Senate amendment contained no similar provision.

The Senate recedes with an amendment that would: (1) limit the prohibition to goods and services that are on the U.S. Munitions List; (2) provide for an exception for goods and services procured in connection with a visit by a vessel or an aircraft of the U.S. Armed Forces, for testing, or for the purposes of gathering intelligence; and (3) authorize the Secretary of Defense to waive the prohibition for national security purposes.

House Report 109-89

SECTION 1213--PROHIBITION ON PROCUREMENTS FROM COMMUNIST CHINESE MILITARY COMPANIES

This section would prohibit the Secretary of Defense from purchasing goods or services from any foreign person connected to the Chinese military or security forces.