93 STAT. 14 PUBLIC LAW
96-8—APR.
10, 1979
Public Law 96-8
96th
Congress
An Act
- -^'Ajji
Apr.
10,
1979
[H.R. 2479]
Taiwan
Relations Act.
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note.
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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 pur-
poses.
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 fmds 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 deter-
mined 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
PUBLIC LAW
96-8—APR.
10, 1979
93 STAT. 15
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.
U.S.
defense
articles and
services,
availability to
Taiwan.
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Defense
reviev/.
Security threat
to Taiwan,
Presidential
report to
Congress.
IMPLEMENTATION OF UNITED STATES
POUCY
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 connec-
tion 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.
APPUCATION
OF LAWS; INTERNATIONAL AGREEMENTS
SEC.
4. (a) The absence of diplomatic relations or recognition shall
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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 enti-
ties,
such terms shall include and such laws shall apply with
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 pro-
grams, 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
"ourt
in the United States, recognition
of the People's Republic of China shall not affect in any way the
ownership of or other
r'
;hts or interests in properties, tangible
93 STAT. 16
PUBLIC LAW
96-8—APR.
10, 1979
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Treaties and
other
international
agreements,
congressional
approval.
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 Grovernment 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 diplo-
matic 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 conven-
tions,
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.
Investment
projects,
insurance,
reinsurance,
loans or
guaranties.
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OVERSEAS PRIVATE INVESTMENT CORPORATION
SEC.
5. (a) During the three-year period beginning on the date of
enact' lent of this Act, the $1,000 per capita income restriction in
clause (2) of the second undesignated paragraph of section
231
of the
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.
(h)
Except as provided in subsection (a) of this section, in issuing
insurance, reinsurance, loans, or guaranties with respect to invest-
ment projects on Taiwan, the Overseas Private Insurance Corpora-
tion shall apply the same criteria as those applicable in other parts of
the
world.
,„
PUBLIC LAW
96-8—APR.
10, 1979 93 STAT. 17
THE AMERICAN INSTITUTE OP TAIWAN
SEC.
6.
(a)
Programs, transactions, and other relations conducted or
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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 ordi-
nance 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
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Taiwan—
(1) to administer to or take from any person an oath, affirma-
tion, 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
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from all taxation now or hereafter imposed by the United States
(except to the extent that section ll(aX3) 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 26 use 3101 et
by
any 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)(lXA),
170(c),
2055(a),
2106(aX2XA),
2522(a),
and
2522(b).
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170,
2055,
2106, 2522.
93 STAT. 18 PUBLIC LAW
96-8—APR.
10, 1979
FURNISHING PROPERTY AND SERVICES TO AND OBTAINING SERVICES
FROM THE INSTITUTE
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SEC.
9. (a) Any agency of the United States Government is author-
ized 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
INSTRUMENTAUTY
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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.
Ot))
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 repect to the Institute and its appropriate person-
nel,
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
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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
emplojrment
with the Institute shall be
93 STAT. 20
PUBLIC LAW
96-8—APR.
10, 1979
Agreement,
transmittal to
Congress or
congressional
committees.
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"Agreement."
Agreements and
transactions
made by the
Institute.
Report to
Speaker of the
House and
Senate Foreign
Relations
Committee.
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 estab-
lished
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 agree-
ments 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 of Representatives and the Committee on Foreign Relations of
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.
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Transmittal to
Speaker of the
House and
Senate Foreign
Relations
Committee.
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
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
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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 relation-
ship between the United States and Taiwan; and
(4) the implementation of the policies of the United States
concerning security and cooperation in East Asia.
Reports.
(b)
Such Committees shall report, as appropriate, to their respective
Houses on the results of their monitoring.
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DEFINITIONS
SEC.
15.
For purposes of this
Act—
PUBLIC LAW
96-8—APR.
10, 1979 93 STAT. 21
(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
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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
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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.
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Approved April 10, 1979.
LEGISLATIVE
HISTORY:
HOUSE
REPORTS: No. 96-26 (Comm. on Foreign Affairs) and No. 96-71 (eomm. of
SENATE
REPORT No. 96-7 accompanying S. 245
(Oomm.
on Foreign Relations).
eONGRESSIONAL
REeOKD,
Vol. 125 (1979):
Mar.
8, 13, considered and passed House.
Mar.
5, 7, 8, 12, 13, S. 245 considered and passed Senate.
Mar.
14, proceedings vitiated; H.R.
2479,
amended, passed in lieu.
Mar.
28, House agreed to conference report.
Mar.
29, Senate agreed to conference report.
WEEKLY
eOMPILATION OF PRESIDENTIAL
DOOUMENTS,
Vol. 15, No. 15:
Apr.
10, Presidential statement.