TAIWAN RELATIONS ACT

Public Law 96-8 96th Congress
(Effective January 1, 1979);
Approved April 10, 1979)

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.