What This Bill Does
This bill allows the President to loan or lease military equipment (called defense articles) to Taiwan's government. The goal is to strengthen Taiwan's ability to defend itself against potential attacks by China's military. Taiwan must pay for repairs if the equipment gets damaged, or pay the replacement cost if it gets lost or destroyed.
Who It Affects
The President and presidential officials who handle military loans. Taiwan's government. The Secretary of Defense. Congress. Taiwan's military and population.
Key Provisions
• The President can loan or lease military equipment to Taiwan to help it defend against attacks from China's military, including naval blockades, ground invasions, missile strikes, or attacks on Taiwan's outlying islands. (Sec. 2(b)(1))
• Taiwan must pay the cost of repairing any loaned or leased equipment that gets damaged, or pay the full replacement cost (minus depreciation) if equipment is lost or destroyed. (Sec. 2(b)(1))
• The President can finance Taiwan's purchase of military services and construction services related to the loaned or leased equipment, but Taiwan must repay this financing within 12 years with interest. (Sec. 2(b)(3)(A))
• The President must create fast-track procedures within 60 days to ensure quick delivery of any loaned or leased military equipment to Taiwan. (Sec. 2(d))
• The Secretary of Defense must report to Congress within 90 days listing which military equipment would be appropriate to loan or lease to Taiwan, including delivery timelines and any supply chain challenges. (Sec. 2(e)(1))
What Changes
If this becomes law, the President gains new power to loan military equipment to Taiwan outside existing restrictions in the Foreign Assistance Act and the Arms Export Control Act. The military relationship between the United States and Taiwan expands to include loaned or leased defense articles. A formal process for delivering this equipment quickly gets established.
Important Definitions
The bill uses the terms "defense article," "defense service," and "design and construction services." It states these terms have the same meanings given in section 47 of the Arms Export Control Act, but the bill itself does not define them separately.
Effective Date
Not specified in bill text
I
118TH CONGRESS
1ST SESSION H. R. 1330
To provide for the loan and lease of defense articles to the Government
of Taiwan, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 1, 2023
Mrs. STEEL (for herself, Mr. PANETTA, Mr. CRENSHAW, Mr. VEASEY, Mr.
WITTMAN, Ms. STRICKLAND, Mr. FALLON, Mr. GOLDEN of Maine, Mrs.
LESKO, Mr. OWENS, Mr. MILLS, Mr. MANN, and Mr. LAMBORN) intro-
duced the following bill; which was referred to the Committee on Foreign
Affairs
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 Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Taiwan Democracy
4
Defense Lend-Lease Act of 2023’’.
5
SEC. 2. LOAN AND LEASE OF DEFENSE ARTICLES TO GOV-
6
ERNMENT OF TAIWAN.
7
(a) SENSE OF CONGRESS.—It is the sense of Con-
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gress that steps taken to bolster the security relations be-
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•HR 1330 IH
tween the United States and Taiwan should include the
1
following:
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(1) The increased conduct of relevant joint mili-
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tary training and bilateral exercises, or multilateral
4
exercises, with the armed forces of Taiwan.
5
(2) The prioritization of capacity building in
6
Taiwan, to ensure the protection of sensitive tech-
7
nology lent or leased to the Government of Taiwan
8
by the United States Government.
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(b) AUTHORITY TO LEND OR LEASE DEFENSE ARTI-
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CLES TO GOVERNMENT OF TAIWAN.—
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(1)
AUTHORITY.—Notwithstanding
section
12
503(b)(3) of the Foreign Assistance Act of 1961 (22
13
U.S.C. 2311(b)(3)) or section 61 of the Arms Ex-
14
port Control Act (22 U.S.C. 2796), the President
15
may lend or lease defense articles to the Government
16
of Taiwan to assist in the bolstering of the defensive
17
capabilities of such Government or the protection of
18
the citizen population of Taiwan from potential ag-
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gression carried out by the People’s Liberation Army
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of China against Taiwan (including through one or
21
more of the means described in paragraph (2)) if, as
22
a condition of such loan or lease, the President re-
23
quires—
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•HR 1330 IH
(A) the payment by the Government of
1
Taiwan of the cost of restoring or replacing the
2
defense article, in the case that the defense ar-
3
ticle is damaged; and
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(B) the payment by the Government of
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Taiwan of an amount equal to the replacement
6
cost (less any depreciation in the value) of the
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defense article, in the case that the defense ar-
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ticle is lost or destroyed.
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(2) MEANS OF AGGRESSION BY PEOPLE’S LIB-
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ERATION ARMY.—The means described in this para-
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graph are the following:
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(A) The full or partial naval blockade of
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Taiwan.
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(B) An amphibious assault and ground in-
15
vasion of Taiwan.
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(C) A missile strike (whether conducted
17
alone or as a part of a broader campaign).
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(D) Kinetic or non-kinetic operations
19
against military targets or critical infrastruc-
20
ture in Taiwan.
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(E) A seizure, or attempted seizure, of one
22
or more of the outlying islands controlled by
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Taiwan.
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•HR 1330 IH
(3) DEFENSE
SERVICES
AND
DEFENSE
CON-
1
STRUCTION SERVICES.—
2
(A) IN GENERAL.—The President may fi-
3
nance the procurement of defense services and
4
design and construction services by the Govern-
5
ment of Taiwan in connection with a loan or
6
lease of a defense article to such Government
7
under paragraph (1), if, as a condition of such
8
financing, the President requires that, not later
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than 12 years after the date on which the
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agreement with the Government of Taiwan for
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such financing is signed on behalf of the United
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States Government, the Government of Taiwan
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pay to the United States Government (in
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United States dollars) an amount equal to the
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sum of—
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(i) the value of such services; and
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(ii) any interest on the unpaid balance
18
of the obligation for payment under clause
19
(i), at a rate that, except as provided in
20
subparagraph (B), is equivalent to the av-
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erage interest rate, as of the last day of
22
the month preceding the date on which
23
such agreement is signed, that the United
24
States Government pays on outstanding
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•HR 1330 IH
marketable obligations of comparable ma-
1
turity.
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(B) EXCEPTION TO INTEREST RATE RE-
3
QUIREMENT.—If the President submits to Con-
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gress a certification containing a determination
5
that national security requires a lesser rate of
6
interest than the rate calculated pursuant to
7
subparagraph (A)(ii), a justification for such
8
determination, and an identification of such
9
lesser rate, the lesser rate so identified shall
10
apply in lieu of the rate calculated pursuant to
11
subparagraph (A)(ii).
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(c) DELEGATION
OF AUTHORITY.—The President
13
may delegate the authority under subsection (b) only to
14
an official appointed by the President by and with the ad-
15
vice and consent of the Senate.
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(d) PROCEDURES FOR DELIVERY OF DEFENSE ARTI-
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CLES.—Not later than 60 days after the date of the enact-
18
ment of this Act, the President shall establish expedited
19
procedures for the delivery of any defense article loaned
20
or leased to the Government of Taiwan under subsection
21
(b) to ensure the timely delivery of the defense article to
22
such Government.
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(e) REPORT
ON
DETERMINATION
OF
DEFENSE
24
NEEDS OF TAIWAN.—
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•HR 1330 IH
(1) REPORT.—Not later than 90 days after the
1
date of the enactment of this Act, the Secretary of
2
Defense, in collaboration with the Commander of the
3
United States Indo-Pacific Command, shall submit
4
to Congress a report on the potential loan and lease
5
of defense articles to the Government of Taiwan
6
under subsection (b). Such report shall include the
7
following:
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(A) An initial assessment of the defense
9
articles that are appropriate for such loan or
10
lease.
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(B) An assessment of any supply chain or
12
other logistical challenges associated with the
13
loan or lease of defense articles identified pur-
14
suant to subparagraph (A).
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(C) A discussion of expected timeframes
16
for the provision to the Government of Taiwan
17
of defense articles identified pursuant to sub-
18
paragraph (A), including—
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(i) expected timelines for the delivery
20
of such defense articles; and
21
(ii) expected timelines for the full in-
22
tegration of such defense articles by the
23
military of Taiwan, such that the military
24
of Taiwan is able to effectively use defense
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•HR 1330 IH
articles so delivered in the event of a con-
1
flict with the People’s Republic of China.
2
(D) Such other matters as the Secretary
3
may consider appropriate.
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(2) FORM.—The report under paragraph (1)
5
shall be submitted in unclassified form, but may in-
6
clude a classified annex.
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(f) DEFINITIONS.—In this section, the terms ‘‘de-
8
fense article’’, ‘‘defense service’’, and ‘‘design and con-
9
struction services’’ have the meanings given those terms
10
in section 47 of the Arms Export Control Act (22 U.S.C.
11
2794).
12
Æ
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