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Congressional Record: June 9, 1999 (House)
Page H3872-H3964

 
        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2000

[...]

                 Amendment No. 14 Offered by Mr. Cox

  Mr. COX. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 14 printed in the Congressional Record 
     offered by Mr. Cox:
          TITLE XIV--PROLIFERATION AND EXPORT CONTROL MATTERS

     SEC. 1401. REPORT ON COMPLIANCE BY THE PEOPLE'S REPUBLIC OF 
                   CHINA AND OTHER COUNTRIES WITH THE MISSILE 
                   TECHNOLOGY CONTROL REGIME.

       (a) Report Required.--Not later than October 31, 1999, the 
     President shall transmit to Congress a report on the 
     compliance, or lack of compliance (both as to acquiring and 
     transferring missile technology), by the People's Republic of 
     China, with the Missile Technology Control Regime, and on any 
     actual or suspected transfer by Russia or any other country 
     of missile technology to the People's Republic of China in 
     violation of the Missile Technology Control Regime. The 
     report shall include a list specifying each actual or 
     suspected violation of the Missile Technology Control Regime 
     by the People's Republic of China, Russia, or other country 
     and, for each such violation, a description of the remedial 
     action (if any) taken by the United States or any other 
     country.
       (b) Matters To Be Included.--The report under subsection 
     (a) shall also include information concerning--
       (1) actual or suspected use by the People's Republic of 
     China of United States missile technology;
       (2) actual or suspected missile proliferation activities by 
     the People's Republic of China;
       (3) actual or suspected transfer of missile technology by 
     Russia or other countries to the People's Republic of China: 
     and
       (4) United States actions to enforce the Missile Technology 
     Control Regime with respect to the People's Republic of 
     China, including actions to prevent the transfer of missile 
     technology from Russia and other countries to the People's 
     Republic of China.

     SEC. 1402. ANNUAL REPORT ON TECHNOLOGY TRANSFERS TO THE 
                   PEOPLE'S REPUBLIC OF CHINA.

       (a) Annual Report.--The President shall transmit to 
     Congress an annual report on transfers to the People's 
     Republic of China by the United States and other countries of 
     technology with potential military applications, during the 
     1-year period preceding the transmittal of the report.
       (b) Initial Report.--The initial report under this section 
     shall be transmitted not later than October 31, 1999.

     SEC. 1403. REPORT ON IMPLEMENTATION OF TRANSFER OF SATELLITE 
                   EXPORT CONTROL AUTHORITY.

       Not later than August 31, 1999, the President shall 
     transmit to Congress a report on the implementation of 
     subsection (a) of section 1513 of the Strom Thurmond National 
     Defense Authorization Act for Fiscal Year 1999 (Public Law 
     105-261; 112 Stat. 2174; 22 U.S.C. 2778 note), transferring 
     satellites and related items from the Commerce Control List 
     of dual-use items to the United States Munitions List. The 
     report shall update the information provided in the report 
     under subsection (d) of that section.

     SEC. 1404. SECURITY IN CONNECTION WITH SATELLITE EXPORT 
                   LICENSING.

       (a) Security at Foreign Launches.--As a condition of the 
     export license for any satellite to be launched outside the 
     jurisdiction of the United States, the Secretary of State 
     shall require the following:
       (1) That the technology transfer control plan required by 
     section 1514(a)(1) of the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999 (Public Law 105-261; 
     112 Stat. 2175; 22 U.S.C. 2778 note) be prepared by the 
     Department of Defense, and agreed to by the licensee, and 
     that the plan set forth the security arrangements for the 
     launch of the satellite, both before and during launch 
     operations, and include enhanced security measures if the 
     launch site is within the jurisdiction of the People's 
     Republic of China or any other country that is subject to 
     section 1514 of the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999.
       (2) That each person providing security for the launch of 
     that satellite--
       (A) be employed by, or under a contract with, the 
     Department of Defense;
       (B) have received appropriate training in the regulations 
     prescribed by the Secretary of State known as the 
     International Trafficking in Arms Regulations (hereafter in 
     this section referred to as ``ITAR'');
       (C) have significant experience and expertise with 
     satellite launches; and
       (D) have been investigated in a manner at least as 
     comprehensive as the investigation required for the issuance 
     of a security clearance at the level designated as 
     ``Secret''.
       (3) That the number of such persons providing security for 
     the launch of the satellite shall be sufficient to maintain 
     24-hour security of the satellite and related launch vehicle 
     and other sensitive technology.
       (4) That the licensee agree to reimburse the Department of 
     Defense for all costs associated with the provision of 
     security for the launch of the satellite.
       (b) Defense Department Monitors.--The Secretary of Defense 
     shall--
       (1) ensure that persons assigned as space launch campaign 
     monitors are provided sufficient training and have adequate 
     experience in the ITAR and have significant experience and 
     expertise with satellite technology, launch vehicle 
     technology, and launch operations technology;
       (2) ensure that adequate numbers of such monitors are 
     assigned to space launch campaigns so that 24-hour, 7-day per 
     week coverage is provided;
       (3) take steps to ensure, to the maximum extent possible, 
     the continuity of service by monitors for the entire space 
     launch campaign period (from satellite marketing to launch 
     and, if necessary, completion of a launch failure analysis); 
     and
       (4) adopt measures designed to make service as a space 
     launch campaign monitor an attractive career opportunity.

     SEC. 1405. REPORTING OF TECHNOLOGY PASSED TO PEOPLE'S 
                   REPUBLIC OF CHINA AND OF FOREIGN LAUNCH 
                   SECURITY VIOLATIONS.

       (a) Monitoring of Information.--The Secretary of Defense 
     shall require that space launch monitors of the Department of 
     Defense assigned to monitor launches in the People's Republic 
     of China maintain records of all information authorized to be 
     transmitted to the People's Republic of China, including 
     copies of any documents authorized for such transmission, and 
     reports on launch-related activities.
       (b) Transmission to Other Agencies.--The Secretary of 
     Defense shall ensure that records under subsection (a) are 
     transmitted

[[Page H3952]]

     on a current basis to appropriate elements of the Department 
     of Defense and to the Department of State, the Department of 
     Commerce, and the Central Intelligence Agency.
       (c) Retention of Records.--Records described in subsection 
     (a) shall be retained for at least the period of the statute 
     of limitations for violations of the Arms Export Control Act.
       (d) Guidelines.--The Secretary of Defense shall prescribe 
     guidelines providing space launch monitors of the Department 
     of Defense with the responsibility and the ability to report 
     serious security violations, problems, or other issues at an 
     overseas launch site directly to the headquarters office of 
     the responsible Department of Defense component.

     SEC. 1406. REPORT ON NATIONAL SECURITY IMPLICATIONS OF 
                   EXPORTING HIGH-PERFORMANCE COMPUTERS TO THE 
                   PEOPLE'S REPUBLIC OF CHINA.

       (a) Review.--The Secretary of Energy, the Secretary of 
     Defense, and the Secretary of State, in consultation with 
     other appropriate departments and agencies, shall conduct a 
     comprehensive review of the national security implications of 
     exporting high-performance computers to the People's Republic 
     of China. As part of the review, the Secretary shall conduct 
     empirical testing of the extent to which national security-
     related operations can be performed using clustered, 
     massively-parallel processing or other combinations of 
     computers.
       (b) Report.--The Secretary of Energy shall submit to 
     Congress a report on the results of the review under 
     subsection (a). The report shall be submitted not later than 
     six months after the date of the enactment of this Act and 
     shall be updated not later than the end of each subsequent 1-
     year period.

     SEC. 1407. END-USE VERIFICATION FOR USE BY PEOPLE'S REPUBLIC 
                   OF CHINA OF HIGH-PERFORMANCE COMPUTERS.

       (a) Revised HPC Verification System.--The President shall 
     seek to enter into an agreement with the People's Republic of 
     China to revise the existing verification system with the 
     People's Republic of China with respect to end-use 
     verification for high-performance computers exported or to be 
     exported to the People's Republic of China so as to provide 
     for an open and transparent system providing for effective 
     end-use verification for such computers and, at a minimum, 
     providing for on-site inspection of the end-use and end-user 
     of such computers, without notice, by United States nationals 
     designated by the United States Government. The President 
     shall transmit a copy of the agreement to Congress.
       (b) Definition.--As used in this section and section 1406, 
     the term ``high performance computer'' means a computer 
     which, by virtue of its composite theoretical performance 
     level, would be subject to section 1211 of the National 
     Defense Authorization Act for Fiscal Year 1998 (50 U.S.C. 
     App. 2404 note).
       (c) Adjustment of Composite Theoretical Performance Levels 
     for Post-shipment Verification.--Section 1213 of the National 
     Defense Authorization Act for Fiscal Year 1998 is amended by 
     adding at the end the following:
       ``(e) Adjustment of Performance Levels.--Whenever a new 
     composite theoretical performance level is established under 
     section 1211(d), that level shall apply for purposes of 
     subsection (a) of this section in lieu of the level set forth 
     in that subsection.''.

     SEC. 1408. PROCEDURES FOR REVIEW OF EXPORT OF CONTROLLED 
                   TECHNOLOGIES AND ITEMS.

       (a) Recommendations for Prioritization of National Security 
     Concerns.--The President shall submit to Congress the 
     President's recommendations for the establishment of a 
     mechanism to identify, on a continuing basis, those 
     controlled technologies and items the export of which is of 
     greatest national security concern relative to other 
     controlled technologies and items.
       (b) Recommendations for Executive Department Approvals for 
     Exports of Greatest National Security Concern.--With respect 
     to controlled technologies and items identified under 
     subsection (a), the President shall submit to Congress the 
     President's recommendations for the establishment of a 
     mechanism to identify procedures for export of such 
     technologies and items so as to provide--
       (1) that the period for review by an executive department 
     or agency of a license application for any such export shall 
     be extended to a period longer than that otherwise required 
     when such longer period is considered necessary by the head 
     of that department or agency for national security purposes; 
     and
       (2) that a license for such an export may be approved only 
     with the agreement of each executive department or agency 
     that reviewed the application for the license, subject to 
     appeal procedures to be established by the President.
       (c) Recommendations for Streamlined Licensing Procedures 
     for Other Exports.--With respect to controlled technologies 
     and items other than those identified under subsection (a), 
     the President shall submit to Congress the President's 
     recommendations for modifications to licensing procedures for 
     export of such technologies and items so as to streamline the 
     licensing process and provide greater transparency, 
     predictability, and certainty.

     SEC. 1409. NOTICE OF FOREIGN ACQUISITION OF UNITED STATES 
                   FIRMS IN NATIONAL SECURITY INDUSTRIES.

       Section 721(b) of the Defense Production Act of 1950 (50 
     U.S.C. 2170(b)) is amended--
       (1) by inserting ``(1)'' before ``The President'';
       (2) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively; and
       (3) by adding at the end the following:
       ``(2) Whenever a person engaged in interstate commerce in 
     the United States is the subject of a merger, acquisition, or 
     takeover described in paragraph (1), that person shall 
     promptly notify the President, or the President's designee, 
     of such planned merger, acquisition, or takeover. Whenever 
     any executive department or agency becomes aware of any such 
     planned merger, acquisition, or takeover, the head of that 
     department or agency shall promptly notify the President, or 
     the President's designee, of such planned merger, 
     acquisition, or takeover.''.

     SEC. 1410. FIVE-AGENCY INSPECTORS GENERAL EXAMINATION OF 
                   COUNTERMEASURES AGAINST ACQUISITION BY THE 
                   PEOPLE'S REPUBLIC OF CHINA OF MILITARILY 
                   SENSITIVE TECHNOLOGY.

       Not later than January 1, 2000, the Inspectors General of 
     the Departments of State, Defense, the Treasury, and Commerce 
     and the Inspector General of the Central Intelligence Agency 
     shall submit to Congress a report on the adequacy of current 
     export controls and counterintelligence measures to protect 
     against the acquisition by the People's Republic of China of 
     militarily sensitive United States technology. Such report 
     shall include a description of measures taken to address any 
     deficiencies found in such export controls and 
     counterintelligence measures.

     SEC. 1411. OFFICE OF TECHNOLOGY SECURITY IN DEPARTMENT OF 
                   DEFENSE.

       (a) Enhanced Multilateral Export Controls.--
       (1) New international controls.--The President shall work 
     (in the context of the scheduled 1999 review of the Wassenaar 
     Arrangement and otherwise) to establish new binding 
     international controls on technology transfers that threaten 
     international peace and United States national security.
       (2) Improved sharing of information.--The President shall 
     take appropriate actions (in the context of the scheduled 
     1999 review of the Wassenaar Arrangement and otherwise) to 
     improve the sharing of information by nations that are major 
     exporters of technology so that the United States can track 
     movements of technology and enforce technology controls and 
     re-export requirements.
       (b) Office of Technology Security.--(1) There is hereby 
     established in the Department of Defense an Office of 
     Technology Security. The Office shall support United States 
     Government efforts to--
       (1) establish new binding international controls on 
     technology transfers that threaten international peace and 
     United States national security; and
       (2) improve the sharing of information by nations that are 
     major exporters of technology so that the United States can 
     track movements of technology and enforce technology controls 
     and re-export requirements.
       At the end of subtitle A of title XXXI (page 419, after 
     line 3), insert the following new section:

     SEC. 3106. DEPARTMENT OF ENERGY COUNTERINTELLIGENCE CYBER 
                   SECURITY PROGRAM.

       (a) Increased Funds for Counterintelligence Cyber 
     Security.--The amounts provided in section 3103 in the matter 
     preceding paragraph (1) and in paragraph (3) are each hereby 
     increased by $8,600,000, to be available for 
     Counterintelligence Cyber Security programs.
       (b) Offsetting Reductions Derived From Contractor Travel.--
     (1) The amount provided in section 3101 in the matter 
     preceding paragraph (1) (for weapons activities in carrying 
     out programs necessary for national security) is hereby 
     reduced by $4,700,000.
       (2) The amount provided in section 3102 in the matter 
     preceding paragraph (1) of subsection (a) (for environmental 
     restoration and waste management in carrying out programs 
     necessary for national security) is hereby reduced by 
     $1,900,000.
       (3) The amount provided in section 3103 in the matter 
     preceding paragraph (1) is hereby reduced by $2,000,000.
       At the end of title XXXI (page 453, after line 15), insert 
     the following new subtitle:
        Subtitle F--Protection of National Security Information

     SEC. 3181. SHORT TITLE.

       This subtitle may be cited as the ``National Security 
     Information Protection Improvement Act''.

     SEC. 3182. SEMI-ANNUAL REPORT BY THE PRESIDENT ON ESPIONAGE 
                   BY THE PEOPLE'S REPUBLIC OF CHINA.

       (a) Reports Required.--The President shall transmit to 
     Congress a report, not less often than every six months, on 
     the steps being taken by the Department of Energy, the 
     Department of Defense, the Federal Bureau of Investigation, 
     the Central Intelligence Agency, and all other relevant 
     executive departments and agencies to respond to espionage 
     and other intelligence activities by the People's Republic of 
     China, particularly with respect to the theft of 
     sophisticated United States nuclear weapons design 
     information and the targeting by the People's Republic of 
     China of United States nuclear weapons codes and other 
     national security information of strategic concern.
       (b) Initial Report.--The first report under this section 
     shall be transmitted not later than January 1, 2000.

[[Page H3953]]

     SEC. 3183. REPORT ON WHETHER DEPARTMENT OF ENERGY SHOULD 
                   CONTINUE TO MAINTAIN NUCLEAR WEAPONS 
                   RESPONSIBILITY.

       Not later than January 1, 2000, the President shall 
     transmit to Congress a report regarding the feasibility of 
     alternatives to the current arrangements for controlling 
     United States nuclear weapons development, testing, and 
     maintenance within the Department of Energy, including the 
     reestablishment of the Atomic Energy Commission as an 
     independent nuclear agency. The report shall describe the 
     benefits and shortcomings of each such alternative, as well 
     as the current system, from the standpoint of protecting such 
     weapons and related research and technology from theft and 
     exploitation. The President shall include with such report 
     the President's recommendation for the appropriate 
     arrangements for controlling United States nuclear weapons 
     development, testing, and maintenance outside the Department 
     of Energy if it should be determined that the Department of 
     Energy should no longer have that responsibility.

     SEC. 3184. DEPARTMENT OF ENERGY OFFICE OF FOREIGN 
                   INTELLIGENCE AND OFFICE OF COUNTERINTELLIGENCE.

       (a) In General.--The Department of Energy Organization Act 
     is amended by inserting after section 212 (42 U.S.C. 7143) 
     the following new sections:


                    ``office of foreign intelligence

       ``Sec. 213. (a) There shall be within the Department an 
     Office of Foreign Intelligence, to be headed by a Director, 
     who shall report directly to the Secretary.
       ``(b) The Director shall be responsible for the programs 
     and activities of the Department relating to the analysis of 
     intelligence with respect to nuclear weapons and materials, 
     other nuclear matters, and energy security.
       ``(c) The Secretary may delegate to the Deputy Secretary of 
     Energy the day-to-day supervision of the Director.


                    ``office of counterintelligence

       ``Sec. 214. (a) There shall be within the Department an 
     Office of Counterintelligence, to be headed by a Director, 
     who shall report directly to the Secretary.
       ``(b) The Director shall carry out all counterintelligence 
     activities in the Department relating to the defense 
     activities of the Department.
       ``(c) The Secretary may delegate to the Deputy Secretary of 
     Energy the day-to-day supervision of the Director.
       ``(d)(1) The Director shall keep the intelligence 
     committees fully and currently informed of all significant 
     security breaches at any of the national laboratories.
       ``(2) For purposes of this subsection, the term 
     `intelligence committees' means the Permanent Select 
     Committee of the House of Representatives and the Select 
     Committee on Intelligence of the Senate.''.
       (b) Clerical Amendment.--The table of contents in the first 
     section of that Act is amended by inserting after the item 
     relating to section 212 the following new items:

``Sec. 213. Office of Foreign Intelligence.
``Sec. 214. Office of Counterintelligence.''.

     SEC. 3185. COUNTERINTELLIGENCE PROGRAM AT DEPARTMENT OF 
                   ENERGY NATIONAL LABORATORIES.

       (a) Program Required.--The Secretary of Energy shall 
     establish and maintain at each national laboratory a 
     counterintelligence program for the defense-related 
     activities of the Department of Energy at such laboratory.
       (b) Head of Program.--The Secretary shall ensure that, for 
     each national laboratory, the head of the counterintelligence 
     program of that laboratory--
       (1) has extensive experience in counterintelligence 
     activities within the Federal Government; and
       (2) with respect to the counterintelligence program, is 
     responsible directly to, and is hired with the concurrence 
     of, the Director of Counterintelligence of the Department of 
     Energy and the director of the national laboratory.

     SEC. 3186. COUNTERINTELLIGENCE ACTIVITIES AT OTHER DEPARTMENT 
                   OF ENERGY FACILITIES.

       (a) Assignment of Counterintelligence Personnel.--(1) The 
     Secretary of Energy shall assign to each Department of Energy 
     facility, other than a national laboratory, at which 
     Restricted Data is located an individual who shall assess 
     security and counterintelligence matters at that facility.
       (2) An individual assigned to a facility under this 
     subsection shall be stationed at the facility.
       (b) Supervision.--Each individual assigned under subsection 
     (a) shall report directly to the Director of the Office of 
     Counterintelligence of the Department of Energy.

     SEC. 3187. DEPARTMENT OF ENERGY POLYGRAPH EXAMINATIONS.

       (a) Counterintelligence Polygraph Program Required.--The 
     Secretary of Energy, acting through the Director of 
     Counterintelligence of the Department of Energy, shall carry 
     out a counterintelligence polygraph program for the defense 
     activities of the Department of Energy. The program shall 
     consist of the administration on a regular basis of a 
     polygraph examination to each covered person who has access 
     to a program that the Director of Counterintelligence and the 
     Assistant Secretary assigned the functions under section 
     203(a)(5) of the Department of Energy Organization Act 
     determine requires special access restrictions.
       (b) Covered Persons.--For purposes of subsection (a), a 
     covered person is any of the following:
       (1) An officer or employee of the Department.
       (2) An expert or consultant under contract to the 
     Department.
       (3) An officer or employee of any contractor of the 
     Department.
       (c) Additional Polygraph Examinations.--In addition to the 
     polygraph examinations administered under subsection (a), the 
     Secretary, in carrying out the defense activities of the 
     Department--
       (1) may administer a polygraph examination to any employee 
     of the Department or of any contractor of the Department, for 
     counterintelligence purposes; and
       (2) shall administer a polygraph examination to any such 
     employee in connection with an investigation of such 
     employee, if such employee requests the administration of a 
     polygraph examination for exculpatory purposes.
       (d) Regulations.--(1) The Secretary shall prescribe any 
     regulations necessary to carry out this section. Such 
     regulations shall include procedures, to be developed in 
     consultation with the Director of the Federal Bureau of 
     Investigation, for identifying and addressing ``false 
     positive'' results of polygraph examinations.
       (2) Notwithstanding section 501 of the Department of Energy 
     Organization Act (42 U.S.C. 7191) or any other provision of 
     law, the Secretary may, in prescribing regulations under 
     paragraph (1), waive any requirement for notice or comment if 
     the Secretary determines that it is in the national security 
     interest to expedite the implementation of such regulations.
       (e) No Change in Other Polygraph Authority.--This section 
     shall not be construed to affect the authority under any 
     other provision of law of the Secretary to administer a 
     polygraph examination.

     SEC. 3188. CIVIL MONETARY PENALTIES FOR VIOLATIONS OF 
                   DEPARTMENT OF ENERGY REGULATIONS RELATING TO 
                   THE SAFEGUARDING AND SECURITY OF RESTRICTED 
                   DATA.

       (a) In General.--Chapter 18 of title I of the Atomic Energy 
     Act of 1954 (42 U.S.C. 2271 et seq.) is amended by inserting 
     after section 234A the following new section:
       ``Sec. 234B. Civil Monetary Penalties for Violations of 
     Department of Energy Regulations Regarding Security of 
     Classified or Sensitive Information or Data.--
       ``a. Any individual or entity that has entered into a 
     contract or agreement with the Department of Energy, or a 
     subcontract or subagreement thereto, and that commits a gross 
     violation or a pattern of gross violations of any applicable 
     rule, regulation, or order prescribed or otherwise issued by 
     the Secretary pursuant to this subtitle relating to the 
     safeguarding or security of Restricted Data or other 
     classified or sensitive information shall be subject to a 
     civil penalty of not to exceed $500,000 for each such 
     violation.
       ``b. The Secretary shall include, in each contract entered 
     into after the date of the enactment of this section with a 
     contractor of the Department, provisions which provide an 
     appropriate reduction in the fees or amounts paid to the 
     contractor under the contract in the event of a violation by 
     the contractor or contractor employee of any rule, 
     regulation, or order relating to the safeguarding or security 
     of Restricted Data or other classified or sensitive 
     information. The provisions shall specify various degrees of 
     violations and the amount of the reduction attributable to 
     each degree of violation.
       ``c. The powers and limitations applicable to the 
     assessment of civil penalties under section 234A shall apply 
     to the assessment of civil penalties under this section.''.
       (b) Clarifying Amendment.--The section heading of section 
     234A of that Act (42 U.S.C. 2282a) is amended by inserting 
     ``Safety'' before ``Regulations''.
       (c) Clerical Amendment.--The table of sections in the first 
     section of that Act is amended by inserting after the item 
     relating to section 234 the following new items:

``234A. Civil Monetary Penalties for Violations of Department of Energy 
              Safety Regulations.
``234B. Civil Monetary Penalties for Violations of Department of Energy 
              Regulations Regarding Security of Classified or Sensitive 
              Information or Data.''.

     SEC. 3189. INCREASED PENALTIES FOR MISUSE OF RESTRICTED DATA.

       (a) Communication of Restricted Data.--Section 224 of the 
     Atomic Energy Act of 1954 (42 U.S.C. 2274) is amended--
       (1) in clause a., by striking ``$20,000'' and inserting 
     ``$400,000''; and
       (2) in clause b., by striking ``$10,000'' and inserting 
     ``$200,000''.
       (b) Receipt of Restricted Data.--Section 225 of such Act 
     (42 U.S.C. 2275) is amended by striking ``$20,000'' and 
     inserting ``$400,000''.
       (c) Disclosure of Restricted Data.--Section 227 of such Act 
     (42 U.S.C. 2277) is amended by striking ``$2,500'' and 
     inserting ``$50,000''.

     SEC. 3190. RESTRICTIONS ON ACCESS TO NATIONAL LABORATORIES BY 
                   FOREIGN VISITORS FROM SENSITIVE COUNTRIES.

       (a) Background Review Required.--The Secretary of Energy 
     may not admit to any facility of a national laboratory any 
     individual who is a citizen or agent of a nation that is 
     named on the current sensitive countries list unless the 
     Secretary first completes a background review with respect to 
     that individual.
       (b) Moratorium Pending Certification.--(1) During the 
     period described in paragraph

[[Page H3954]]

     (2), the Secretary may not admit to any facility of a 
     national laboratory any individual who is a citizen or agent 
     of a nation that is named on the current sensitive countries 
     list.
       (2) The period referred to in paragraph (1) is the period 
     beginning 30 days after the date of the enactment of this Act 
     and ending on the later of the following:
       (A) The date that is 90 days after the date of the 
     enactment of this Act.
       (B) The date that is 45 days after the date on which the 
     Secretary submits to Congress a certification described in 
     paragraph (3).
       (3) A certification referred to in paragraph (2) is a 
     certification by the Director of Counterintelligence of the 
     Department of Energy, with the concurrence of the Director of 
     the Federal Bureau of Investigation, that all security 
     measures are in place that are necessary and appropriate to 
     prevent espionage or intelligence gathering by or for a 
     sensitive country, including access by individuals referred 
     to in paragraph (1) to classified information of the national 
     laboratory.
       (c) Waiver of Moratorium.--(1) The Secretary of Energy may 
     waive the prohibition in subsection (b) on a case-by-case 
     basis with respect to any specific individual or any specific 
     delegation of individuals whose admission to a national 
     laboratory is determined by the Secretary to be in the 
     interest of the national security of the United States.
       (2) Not later than the seventh day of the month following a 
     month in which a waiver is made, the Secretary shall submit a 
     report in writing providing notice of each waiver made in 
     that month to the following:
       (A) The Committee on Armed Services and the Select 
     Committee on Intelligence of the Senate.
       (B) The Committee on Armed Services and the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives.
       (3) Each such report shall be in classified form and shall 
     contain the identity of each individual or delegation for 
     whom such a waiver was made and, with respect to each such 
     individual or delegation, the following information:
       (A) A detailed justification for the waiver.
       (B) For each individual with respect to whom a background 
     review was conducted, whether the background review 
     determined that negative information exists with respect to 
     that individual.
       (C) The Secretary's certification that the admission of 
     that individual or delegation to a national laboratory is in 
     the interest of the national security of the United States.
       (4) The authority of the Secretary under paragraph (1) may 
     be delegated only to the Director of Counterintelligence of 
     the Department of Energy.
       (d) Exception to Moratorium for Certain Individuals.--The 
     moratorium under subsection (b) shall not apply to any person 
     who--
       (1) is, on the date of the enactment of this Act, an 
     employee or assignee of the Department of Energy, or of a 
     contractor of the Department; and
       (2) has undergone a background review in accordance with 
     subsection (a).
       (e) Exception to Moratorium for Certain Programs.--In the 
     case of a program undertaken pursuant to an international 
     agreement between the United States and a foreign nation, the 
     moratorium under subsection (b) shall not apply to the 
     admittance to a facility that is important to that program of 
     a citizen of that foreign nation whose admittance is 
     important to that program.
       (f) Sense of Congress Regarding Background Reviews.--It is 
     the sense of Congress that the Secretary of Energy, the 
     Director of the Federal Bureau of Investigation, and the 
     Director of Central Intelligence should ensure that 
     background reviews carried out under this section are 
     completed in not more than 15 days.
       (g) Definitions.--For purposes of this section:
       (1) The term ``background review'', commonly known as an 
     indices check, means a review of information provided by the 
     Director of Central Intelligence and the Director of the 
     Federal Bureau of Investigation regarding personal 
     background, including information relating to any history of 
     criminal activity or to any evidence of espionage.
       (2) The term ``sensitive countries list'' means the list 
     prescribed by the Secretary of Energy known as the Department 
     of Energy List of Sensitive Countries.

     SEC. 3191. REQUIREMENTS RELATING TO ACCESS BY FOREIGN 
                   VISITORS AND EMPLOYEES TO DEPARTMENT OF ENERGY 
                   FACILITIES ENGAGED IN DEFENSE ACTIVITIES.

       (a) Security Clearance Review Required.--The Secretary of 
     Energy may not allow unescorted access to any classified 
     area, or access to classified information, of any facility of 
     the Department of Energy engaged in the defense activities of 
     the Department to any individual who is a citizen of a 
     foreign nation unless--
       (1) the Secretary, acting through the Director of 
     Counterintelligence, first completes a security clearance 
     investigation with respect to that individual in a manner at 
     least as comprehensive as the investigation required for the 
     issuance of a security clearance at the level required for 
     such access under the rules and regulations of the 
     Department; or
       (2) a foreign government first completes a security 
     clearance investigation with respect to that individual in a 
     manner that the Secretary of State, pursuant to an 
     international agreement between the United States and that 
     foreign government, determines is equivalent to the 
     investigation required for the issuance of a security 
     clearance at the level required for such access under the 
     rules and regulations of the Department.
       (b) Effect on Current Employees.--The Secretary shall 
     ensure that any individual who, on the date of the enactment 
     of this Act, is a citizen of a foreign nation and an employee 
     of the Department or of a contractor of the Department is not 
     discharged from such employment as a result of this section 
     before the completion of the security clearance investigation 
     of such individual under subsection (a) unless the Director 
     of Counterintelligence determines that such discharge is 
     necessary for the national security of the United States.

     SEC. 3192. ANNUAL REPORT ON SECURITY AND COUNTERINTELLIGENCE 
                   STANDARDS AT NATIONAL LABORATORIES AND OTHER 
                   DEFENSE FACILITIES OF THE DEPARTMENT OF ENERGY.

       (a) Report on Security and Counterintelligence Standards at 
     National Laboratories and Other DOE Defense Facilities.--Not 
     later than March 1 of each year, the Secretary of Energy, 
     acting through the Director of Counterintelligence of the 
     Department of Energy, shall submit a report on the security 
     and counterintelligence standards at the national 
     laboratories, and other facilities of the Department of 
     Energy engaged in the defense activities of the Department, 
     to the following:
       (1) The Committee on Armed Services and the Select 
     Committee on Intelligence of the Senate.
       (2) The Committee on Armed Services and the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives.
       (b) Contents of Report.--The report shall be in classified 
     form and shall contain, for each such national laboratory or 
     facility, the following information:
       (1) A description of all security measures that are in 
     place to prevent access by unauthorized individuals to 
     classified information of the national laboratory or 
     facility.
       (2) A certification by the Director of Counterintelligence 
     of the Department of Energy as to whether--
       (A) all security measures are in place to prevent access by 
     unauthorized individuals to classified information of the 
     national laboratory or facility; and
       (B) such security measures comply with Presidential 
     Decision Directives and other applicable Federal requirements 
     relating to the safeguarding and security of classified 
     information.
       (3) For each admission of an individual under section 3190 
     not described in a previous report under this section, the 
     identity of that individual, and whether the background 
     review required by that section determined that information 
     relevant to security exists with respect to that individual.

     SEC. 3193. REPORT ON SECURITY VULNERABILITIES OF NATIONAL 
                   LABORATORY COMPUTERS.

       (a) Report Required.--Not later than March 1 of each year, 
     the National Counterintelligence Policy Board shall prepare a 
     report, in consultation with the Director of 
     Counterintelligence of the Department of Energy, on the 
     security vulnerabilities of the computers of the national 
     laboratories.
       (b) Preparation of Report.--In preparing the report, the 
     National Counterintelligence Policy Board shall establish a 
     so-called ``red team'' of individuals to perform an 
     operational evaluation of the security vulnerabilities of the 
     computers of the national laboratories, including by direct 
     experimentation. Such individuals shall be selected by the 
     National Counterintelligence Policy Board from among 
     employees of the Department of Defense, the National Security 
     Agency, the Central Intelligence Agency, the Federal Bureau 
     of Investigation, and of other agencies, and may be detailed 
     to the National Counterintelligence Policy Board from such 
     agencies without reimbursement and without interruption or 
     loss of civil service status or privilege.
       (c) Submission of Report to Secretary of Energy and to FBI 
     Director.--Not later than March 1 of each year, the report 
     shall be submitted in classified and unclassified form to the 
     Secretary of Energy and the Director of the Federal Bureau of 
     Investigation.
       (d) Forwarding to Congressional Committees.--Not later than 
     30 days after the report is submitted, the Secretary and the 
     Director shall each separately forward that report, with the 
     recommendations in classified and unclassified form of the 
     Secretary or the Director, as applicable, in response to the 
     findings of that report, to the following:
       (1) The Committee on Armed Services and the Select 
     Committee on Intelligence of the Senate.
       (2) The Committee on Armed Services and the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives.

     SEC. 3194. GOVERNMENT ACCESS TO CLASSIFIED INFORMATION ON 
                   DEPARTMENT OF ENERGY DEFENSE-RELATED COMPUTERS.

       (a) Procedures Required.--The Secretary of Energy shall 
     establish procedures to govern access to classified 
     information on DOE defense-related computers. Those 
     procedures shall, at a minimum, provide that each employee of 
     the Department of Energy who requires access to classified 
     information shall be required as a condition of such access 
     to provide to the Secretary written consent which permits 
     access by an authorized investigative agency to any DOE 
     defense-related

[[Page H3955]]

     computer used in the performance of the defense-related 
     duties of such employee during the period of that employee's 
     access to classified information and for a period of three 
     years thereafter.
       (b) Expectation of Privacy in DOE Defense-Related 
     Computers.--Notwithstanding any other provision of law 
     (including any provision of law enacted by the Electronic 
     Communications Privacy Act of 1986), no user of a DOE 
     defense-related computer shall have any expectation of 
     privacy in the use of that computer.
       (c) Definitions.--For purposes of this section:
       (1) The term `DOE defense-related computer'' means a 
     computer of the Department of Energy or a Department of 
     Energy contractor that is used, in whole or in part, for a 
     Department of Energy defense-related activity.
       (2) The term ``computer'' means an electronic, magnetic, 
     optical, electrochemical, or other high-speed data processing 
     device performing logical, arithmetic, or storage functions, 
     and includes any data storage facility or communications 
     facility directly related to, or operating in conjunction 
     with, such device.
       (3) The term ``authorized investigative agency'' means an 
     agency authorized by law or regulation to conduct a 
     counterintelligence investigation or investigations of 
     persons who are proposed for access to classified information 
     to ascertain whether such persons satisfy the criteria for 
     obtaining and retaining access to such information.
       (4) The term ``classified information'' means any 
     information that has been determined pursuant to Executive 
     Order No. 12356 of April 2, 1982, or successor orders, or the 
     Atomic Energy Act of 1954, to require protection against 
     unauthorized disclosure and that is so designated.
       (5) The term ``employee'' includes any person who receives 
     a salary or compensation of any kind from the Department of 
     Energy, is a contractor of the Department of Energy or an 
     employee thereof, is an unpaid consultant of the Department 
     of Energy, or otherwise acts for or on behalf of the 
     Department of Energy.
       (d) Establishment of Procedures.--Not later than 90 days 
     after the date of the enactment of this Act, the Secretary of 
     Energy shall prescribe such regulations as may be necessary 
     to implement this section.

     SEC. 3195. DEFINITION OF NATIONAL LABORATORY.

       For purposes of this subtitle, the term ``national 
     laboratory'' means any of the following:
       (1) The Lawrence Livermore National Laboratory, Livermore, 
     California.
       (2) The Los Alamos National Laboratory, Los Alamos, New 
     Mexico.
       (3) The Sandia National Laboratories, Albuquerque, New 
     Mexico.
       (4) The Oak Ridge National Laboratories, Oak Ridge, 
     Tennessee.

  The CHAIRMAN. Pursuant to House Resolution 200, the gentleman from 
California (Mr. Cox) and the gentleman from Connecticut (Mr. Gejdenson) 
each will control 30 minutes.
  The Chair recognizes the gentleman from California (Mr. Cox).
  Mr. COX. Mr. Chairman, I yield myself such time as I may consume.
  I am delighted that the amendment that the gentleman from Washington 
(Mr. Dicks) and I are offering today has, like the report of our select 
committee itself, been brought to the floor in a bipartisan fashion, 
endorsed in this case by every Republican and Democratic member of our 
select committee. In addition, the amendment is supported by the 
representatives of the congressional districts in which our national 
weapons laboratories are located: the gentlewoman from New Mexico (Mrs. 
Wilson), the gentleman from Texas (Mr. Thornberry), the gentleman from 
Tennessee (Mr. Wamp) and the gentlewoman from California (Mrs. 
Tauscher). The amendment is also supported by the gentleman from New 
York (Mr. Gilman) and the gentleman from South Carolina (Mr. Spence) of 
the Committees on International Relations and Armed Services as well as 
by the gentleman from California (Mr. Dreier) of the Committee on 
Rules. All of these people have contributed in important ways to 
fashioning the amendment that is before us.
  Last year, this House created the Select Committee on U.S. Security 
and Military/Commercial Concerns With the People's Republic of China to 
investigate efforts by the PRC to acquire American high technology for 
military purposes. It was my privilege to chair that committee and to 
serve with leaders on national security and foreign policy from both 
sides of the aisle, in particular our ranking Democratic member the 
gentleman from Washington (Mr. Dicks), at the time the ranking 
Democratic member also of the Permanent Select Committee on 
Intelligence. The vice chairman of our select committee was the 
gentleman from Florida (Mr. Goss), who was then and is now the chairman 
of the Permanent Select Committee on Intelligence. The gentleman from 
Nebraska (Mr. Bereuter), who serves as the chairman of the Subcommittee 
on Asia and the Pacific of the Committee on International Relations, 
was also a leader on the select committee, as were the gentleman from 
Utah (Mr. Hansen) and the gentleman from South Carolina (Mr. Spratt), 
senior members of the Committee on Armed Services, and the gentleman 
from Pennsylvania (Mr. Weldon), who on the Committee on Armed Services 
is the chairman of the Subcommittee on Military Research and 
Development. The gentlewoman from California (Ms. Roybal-Allard) and 
the gentleman from Virginia (Mr. Scott) were strong contributors to our 
committee and to the fashioning of this amendment.
  I want to pay tribute to these of my colleagues who are hardworking 
and patriotic members who spent months on a very difficult and grueling 
investigation essentially behind closed doors without any notice by the 
rest of our colleagues. During that period of time we heard 150 hours 
of testimony from 75 different witnesses and reviewed over half a 
million pages of evidentiary material. The amendment that we are 
bringing to the floor today is a start on the implementation of the 38 
recommendations of this select committee. Most of the legislative 
recommendations that our select committee has made fall within the 
jurisdiction of standing committees of the House of Representatives and 
of the other body, and for that reason are not being offered today, 
notwithstanding that we had half a year of hearings on our 
recommendations before reaching them. We are deferring at the request 
of those committees to their jurisdiction, but we hope and expect 
inasmuch as our recommendations were laid at their feet on the 3rd of 
January of this year that very shortly we will be back on the floor 
with the lion's share of the recommendations that our select committee 
has made.
  What we have prepared for consideration today as a start on that 
process is an amendment that will require the Department of Defense to 
prepare the Technology Transfer Control Plans for satellite launches in 
the People's Republic of China, a very significant substantive matter 
into which the select committee inquired. The amendment will also 
require that the Department of Defense have highly trained employees to 
provide round-the-clock monitoring and security for these foreign 
launches that we have thought was always being provided ever since this 
program was adopted a decade ago. The amendment will require improved 
controls over information transmitted to the PRC during the course of 
launches. It will require the President to report on how he is 
implementing a key reform already adopted by the Congress last year, 
the transfer of satellite export control authority from the Commerce 
Department to the State Department.
  Our select committee also recommended an improved intelligence 
community focus on the People's Republic of China's intelligence 
efforts directed against the United States, including reports to the 
Congress on PRC espionage and on technology transfers to the PRC. And 
we have recommended and called for in this amendment a five-agency 
inspectors general counterintelligence review of countermeasures 
against PRC technology acquisition. This amendment directly implements 
a recommendation in that respect of the select committee. Our report 
also calls for stronger multilateral governance of exports of certain 
militarily useful goods and technologies. We found that the United 
States should insist on PRC compliance with the MTCR, the Missile 
Technology Control Regime, and this amendment calls for follow-up on 
that.
  We found that the United States should work to revive the strong 
multilateral proliferation controls that were dismantled in 1994. Our 
amendment responds by requiring the President to submit a full report 
on PRC compliance with the Missile Technology Control Regime, including 
a list of violations, and any remedial actions that he has taken. We 
require the President to work for new binding international controls on 
harmful technology transfers, so that when the United States controls 
an export, as in many cases we

[[Page H3956]]

already do, we do not go it alone and we find that only our producers 
and our workers are injured with no national security benefit because 
someone else is rushing in to make the sale. We had a system just like 
this in 1994. It was allowed to dissipate and we need to show 
international leadership and put that system back together.
  In furtherance of that goal, this amendment creates a new Office of 
Technology Security in the Department of Defense, dedicated exclusively 
to support of these efforts. Our report unanimously concluded that no 
adequate verification exists that high-powered computers, what used to 
be called supercomputers, now high-performance computers, that are 
exported to the PRC are being used for civilian rather than military 
purposes. We have called for the establishment of an open transparent 
system, an effective verification regime in the PRC by September of 
this year as a condition for export licensing and the continued sale of 
the current speeds of computers and even faster ones in the future.

  We have also called for a comprehensive annual assessment of the 
national security implications of such exports. We direct the President 
in this amendment to revise the existing verification agreement with 
the PRC to include real on-site inspections. We have agreed in a 
bilateral with the PRC already in principle that this should occur but 
that bilateral is shot full of holes and we need to make it work. We 
need to have end use verification without notice, on demand, negotiated 
simply as a term of trade, not in any way calling into question the 
national sovereignty of the PRC. And we further require in this 
amendment a comprehensive annual report on the national security 
implications of these exports.
  These are important improvements, but I want to emphasize this 
represents, even after we pass this amendment, unfinished business by 
this Congress. We have much work to do. Some additional hearings 
undoubtedly will be required but most importantly markups and the 
movement of legislation through our standing committees of jurisdiction 
to the floor so that we can do the heavy lifting that is called for in 
the full 38 of our recommendations, some 26 of which are touched upon 
although not implemented in full in the amendment that is before us 
today. In that regard, I am very happy that the gentleman from New York 
(Mr. Gilman) of the Committee on International Relations has assured me 
that his committee will move legislation addressing these 
recommendations in the immediate future.
  Our report found wholesale inexcusable security weaknesses at our 
Nation's national weapons laboratories, among the most sensitive 
national defense sites in our country. Our report recommended a battery 
of urgent reforms, and this amendment comprehensively implements them. 
We establish offices of foreign intelligence and counterintelligence 
within the Energy Department, reporting directly to the Secretary of 
Energy, as well as counterintelligence programs at each national 
laboratory. We require a DOE counterintelligence polygraph program, 
something that should have been in place frankly for a long time. We 
establish a moratorium on foreign visitor programs with a national 
security waiver that the Energy Secretary can issue until such time as 
there is certified and in place a program with adequate security 
measures. We bar access by foreigners to classified areas and 
information at Department of Energy facilities until they have been 
cleared, until the foreign visitors have been cleared for security. And 
we clarify and confirm that the Federal Government has every right, has 
now and in fact always has had every right to search defense-related 
computers throughout the DOE complex.
  In conclusion, this is a balanced response to an urgent problem. It 
is a first of several important steps that we need to take. I want in 
closing to thank again the staff of the committees of jurisdiction that 
have worked with us in bringing this amendment to the floor and the 
staff of our select committee, including in particular our select 
committee staff director Dean McGrath, special counsel Mike Sheehy, the 
policy committee's executive director Ben Cohen and Jonathan Burks, 
Walker Roberts of the Committee on International Relations staff, 
Robert Rangel of the Committee on Armed Services staff, Andrew Hunter 
with the gentleman from Washington (Mr. Dicks) and Hugh Brady with the 
gentleman from South Carolina (Mr. Spratt). Their hard work has served 
the national interest.
  Mr. Chairman, I reserve the balance of my time.
  Mr. GEJDENSON. Mr. Chairman, I ask unanimous consent that in 
concluding my remarks, my time be handled by the gentlewoman from 
California (Ms. Lee).
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Connecticut?
  There was no objection.
  Mr. GEJDENSON. Mr. Chairman, I yield myself such time as I may 
consume. We had a select committee, and the select committee issued a 
report. In that report they stated that the appropriate congressional 
committees report legislation. But apparently we have now tried a new 
tack. To prevent opposition for this legislation, a lot of the most 
important provisions apparently have been removed. We now have nine or 
ten reports from the administration. I know we all look forward to 
getting more reports from the administration and that will be helpful 
to all of us. But I am fearful that the entire process is leading to a 
frenzy that will shut down American industry. And if there is anything 
that would harm American national security, it is our leadership in 
these very high tech fields. When we look at where computers come from 
these days, we find that we do not control all the computers. 
Approximately 14 of the top 25 manufacturers of workstations are not 
U.S. companies but foreign competitors. And even in the most powerful 
supercomputers, Hitachi, NEC and Fujitsu manufacture 20 percent of 
them. Now, when we look at what supercomputers are, we find that you 
can buy the next generation of Intel, which will have a 500 megahertz 
system, is what we are used to calling it, but if you put it in MTOPS, 
the same numbers the government uses, you will find that this computer 
which has a board that you can put eight chips in will operate at 
16,000 MTOPS.
  Now, when I first got to Congress, the Defense Department and the 
State Department prevented the sale of American machine tools, because 
our machine tools were so good they did not want the Russians to get 
them. We did that for so long that we no longer were the leader in 
machine tools. And finally when we caught the Russians getting a 
machine tool of the quality they wanted, what they bought was a 
Toshiba. If we are not very careful here, we will do little to increase 
our security as far as theft of American development, scientific and 
defense-related, but we will cripple the industries that give us the 
lead.

                              {time}  1400

  If we start trying to block the kind of sales that are commercially 
available, countries will not just sit back and say, well, I cannot get 
it in the United States, so I am not going to go to Japan, I am not 
going to go to Taiwan, I am not going to go to Israel and Moscow and 
all the other places these products are available.
  So, while we have this great instinct at the moment to respond to 
what clearly has been a problem, if we do not do it in a comprehensive 
manner, I think we will do more damage to American national security 
than we will to those trying to pilfer our secrets.
  It is clear that what we need to do is rather than simply broaden our 
controls we need to narrow our controls and focus them on choke point 
technologies, fissionable material, the things that make weapons and 
the technologies we can control. If we try to control a product that is 
available in Radio Shack in Beijing, we are kidding ourselves.
  Now in the discussions of having the follow on to COCOM to be a more 
effective force, we have now been through two administrations, and 
COCOM, even when the Soviet Union was at its height, we always had 
problem with our allies selling the technologies we wanted to control. 
With the end of COCOM, we have barely been able to get them to sit down 
in the room to discuss these technologies, but they are certainly not 
restricting the sale.
  So what I see happening here is in an attempt to create the image of 
action

[[Page H3957]]

we are taking steps that may not be harmful today but certainly are 
not, one, the comprehensive solution that we need in the comprehensive 
review and certainly violate the committee's own statement again where 
the committee stated that the appropriate congressional committees 
should report the legislation.
  That is not a turf fight; that is about people who look at the entire 
issue, balance America's interest, both in security and economic, take 
a look at what is doable rather than simply ad hoc adding section after 
section.
  Mr. BEREUTER. Mr. Chairman, will the gentleman yield?
  Mr. GEJDENSON. I yield to the gentleman from Nebraska.
  (Mr. BEREUTER asked and was given permission to revise and extend his 
remarks.)
  Mr. BEREUTER. Mr. Chairman, I thank the distinguished gentleman from 
Connecticut for yielding as this Member needs to start a classified 
briefing with Dr. Perry on his North Korea visit.
  I wanted to say that I understand the gentleman's concern, for 
example, about the potential loss of jurisdiction for the House 
International Relations Committee. I had those jurisdiction concerns 
myself, and still do to some extent, although part of yesterday was 
spent in discussing and negotiating, in effect, on this amendment's 
language with the gentleman from California (Mr. Cox) and indirectly 
with the gentleman from Washington (Mr. Dicks). Also, I am a member of 
the select committee that has done the work leading to this amendment 
by the gentleman from California, and I thank the gentleman from 
California for his kind remarks.
  Sections 1401 through 1411 are, for the most part, with International 
Relations jurisdiction. We have seen changes in this amendment, but 
also I think it is incumbent on us to recognize that we need to look at 
the language of this amendment very closely, clearly before conference 
is conducted, to see if, in fact, the amendment might have unintended 
consequences that are not visible now. But I also think, as Chairman 
Cox suggested that our International Relations Committee needs to 
conduct oversight, as several other committees do as we proceed to the 
implementation of the recommendations in the Cox Committee's 
recommendations. I do understand the desire of the gentleman from 
California (Mr. Cox) to have action on his amendment now, and I think 
he has made great accommodations to our jurisdictional consensus.
  As my colleagues know, the recommendations, the 38, were unanimously 
approved by the Cox select committee. Now comes the difficult task of 
writing appropriate legislation. So I do understand the concerns of the 
distinguished gentleman from Connecticut heard here today relating to 
jurisdiction. I think we on the International Relations Committee ought 
to commit ourselves to trying to move quickly on oversight but also to 
refine the language of this amendment as necessary in the next several 
weeks.
  Mr. GEJDENSON. Reclaiming my time, I just add that, as my colleagues 
know, giving Members of Congress not even 24 hours to see the language 
on amendment of this nature is also problematic. I understand the 
negotiations were going on until the very end, but this is too serious 
to do on an ad hoc basis with a section here and a section there.
  Mr. Chairman, I think if we look at that, at one point televisions 
were American. Next thing we know, they did not make them in America 
virtually. At one point machine tools, we have the leadership in 
manufacturing machine tools; it went to Japan. High tech is easier to 
move, cheaper to move and is available in lots of other countries. We 
are not careful, we are going to kill the American expertise and 
superiority in this area.
  Mr. Chairman, I reserve the balance of my time.
  Ms. LEE. Mr. Chairman, I yield 5 minutes to the gentleman from 
Washington (Mr. Dicks).
  Mr. DICKS. Mr. Chairman, I rise in support of the Cox-Dicks 
amendment. The amendment is bipartisan and represents a good common 
ground that members of both parties can support. Most importantly, it 
will help to solve the important security problems we have at the 
Department of Energy, and before I go any further I want to echo and 
associate myself with the remarks of the gentleman from California who 
served this House in a very successful and distinguished way as 
chairman of the committee, the select committee, and it was about a 
year ago that we started down this road, and he has done an excellent 
job representing the House, and I am proud to associate myself with 
th                 Amendment No. 14 Offered by Mr. Cox

  Mr. COX. Mr
committee. And I, too, want to compliment the staff, particularly the 
investigative staff who did a principle amount of the work on this very 
important issue.
  I am proud that the House has managed to address this problem in a 
bipartisan fashion. We have had several bumps and long terms along the 
road, but we have arrived in the right place I believe. I commend the 
gentleman from California (Mr. Cox) for working hard to ensure the 
bipartisan agreement was possible. The amendment we have crafted, while 
not perfect, is a good one. I urge members to vote for this amendment 
to help solve the glaring security problems at the Department of 
Energy. Our new Secretary, Bill Richardson, is doing a great job there 
to solve these problems with the help of Ed Curran who is in charge of 
counter intelligence. We can help him, and we should.
  This amendment codifies major portions of Presidential Decision 
Directive 61, PDD 61, to establish strong, independent Office of 
Counter intelligence at DOE with direct access to the Secretary, and I 
might point out in fairness the President had made his decision on this 
directive in February of 1998, four months before our select committee 
was established, and it took awhile to get the recommendations of Mr. 
Curran in place, but Secretary Richardson is doing that with great 
force and vigor.
  This also, this amendment also requires regular polygraphing of 
employees handling sensitive nuclear information, greatly increases 
civil and criminal penalties for mishandling or release of classified 
information, imposes a strong moratorium on foreign visitors to 
national labs until strong security measures are in place, re-enforces 
prohibitions on giving classified information to foreign nationals, 
requires a comprehensive annual report on security and counter 
intelligence at all DOE defense facilities, requires a report and red 
team analysis of DOE computer vulnerabilities including funding for a 
new cyber security program and requires DOE employees to consent to 
searches of their work computers used in DOE defense activity as a 
condition of receiving security clearance.
  Mr. Chairman, these measures are tough but appropriate, and they give 
Energy Secretary Richardson the authority he needs to solve the 
problem. That should be our goal today. Let us stay away from the blame 
game.
  As I mentioned, this amendment is not perfect. It will require some 
further work in conference on a few issues. In particular it was my 
intention that this amendment would not affect the nuclear Navy, and we 
have committed to work on this issue in the context of conference 
committee, and in fact it is my belief that this amendment does not 
reach the nuclear Navy labs.
  We have also agreed to address in conference the concerns that we may 
undermine existing bilateral agreements with China and Russia and 
interfere in launch campaigns with our European allies by requiring the 
Department of Defense to hire security personnel at launch campaigns. 
By the way, this was one of my recommendations, and I hope that we can 
keep it in place. We need to continue to work on it.
  Again I want to thank the gentleman from California (Mr. Cox) for 
working with me on this amendment, and I urge every member to support 
it.
  I think in addressing what my good friend, the gentleman from 
Connecticut (Mr. Gejdenson) has said earlier, it was our intent and our 
hope that each of the committees of Congress that has jurisdiction 
would take action, and of course the defense authorization bill gave us 
a vehicle working with members of the defense committee, the gentleman 
from Missouri (Mr. Skelton), the gentleman from

[[Page H3958]]

South Carolina (Mr. Spratt), the gentleman from Pennsylvania (Mr. 
Weldon) and others who are members of the committee in a bipartisan 
fashion to draft this amendment. So we are trying our very best to live 
up not only to our select committee's recommendation, but also to 
respect the jurisdiction of the House and the committees in the House, 
many of whom were involved in the drafting of this amendment.
  So, again it has been a great pleasure to work with the gentleman 
from California (Mr. Cox) and his staff on drafting this amendment and 
working on the select committee report. I think it was good that in a 
time of upheaval here in the House, during impeachment that we could 
come to a bipartisan agreement on an important national security issue.
  Mr. COX of California. Mr. Chairman, I yield 4 minutes to the 
gentleman from Florida (Mr. Goss), Chairman of the Permanent Select 
Committee on Intelligence and the Vice Chairman of the Select 
Committee.
  (Mr. GOSS asked and was given permission to revise and extend his 
remarks.)
  Mr. GOSS. Mr. Chairman, I want to take the opportunity in this debate 
to restate to the whole House and to the whole world the important work 
that was done by the subcommittee of the gentleman from California (Mr. 
Cox). I think it is very fair to say that it was bipartisan, it was 
unanimous, and it was extraordinarily significant, and that just did 
not happen by circumstance.
  I rise in strong support of the bipartisan amendment that we have got 
before us today. Obviously the amendment provides reasonable steps to 
start the process, to carry out some, not all, of the recommendations 
of the Cox committee.
  I want to commend very much publicly the gentleman from California 
(Mr. Cox) and ranking member (Mr. Dicks), other members of the 
committee, for their excellent work, for their very strong leadership 
in what I think is obviously a vital national security matter, and 
anybody who reads the report would have to come to that same 
conclusion. It was a pleasure to be associated with that effort.
  However I speak as Chairman of the Permanent Select Committee on 
Intelligence and Vice Chairman of the Cox Committee on China both today 
because I have tried to serve as a bridge between the two 
organizations. Obviously the intelligence peace is just one part of 
what the Cox committee did, but it is a very important part, and now 
that the Cox report has been released, those committee chairmen with 
jurisdiction over various aspects of our findings on the Cox committee 
can get down to the business and will get down to the business of 
taking legislative and other steps to implement the recommendations in 
the bipartisan undertaking that that committee was. Hence the amendment 
today.
  With this in mind, Mr. Chairman, I have asked that the Permanent 
Select Committee on Intelligence move forward in 6 specific areas. 
First we will examine all manner of Chinese directed espionage against 
the United States. That is no small matter. Second, we will examine 
Chinese directed covert action type activities conducted against the 
United States such as the use of agents of influence and efforts to 
subvert or otherwise manipulate the United States political process, 
something that is near and dear to our hearts and must not be tampered 
with. Third, we will examine counterintelligence programs, past, 
present and proposed, for the Department of Energy, Department of 
Defense, for the national labs, with the emphasis on the adequacy of 
the proposed enhancements and the structural changes meant to manage 
them. Fourth, we will investigate the issue of whether the Permanent 
Select Committee on Intelligence was kept properly advised of 
developments by the FBI and the Department of Energy. This is important 
because there is conflicting testimony, and oversight is a tradition in 
this House, but it is also a responsibility in this House. It is built 
on trust and candor, and we must have that between the branch of 
government. So that is an area that must be cleared up.
  Fifth, we will examine issues relating to the role the intelligence 
community plays in supporting policymakers in determining U.S. export 
and technology transfer policies. Certainly there is an argument that 
can be made that we were a little over zealous in selling things that 
perhaps we should have been more cautious about. That in no way takes 
away from the thought that my friend and colleague from Connecticut has 
expressed that we must have access to the international marketplace. 
Quality of life in this country, jobs in this country, depend on our 
ability to export, but we need to be smart about what we export and 
make sure it is always to our advantage. And finally, we will examine 
the policy of treating advanced counter intelligence investigations 
principally as law enforcement rather than national security matters.

                              {time}  1415

  We have to determine whether it is more important that a spy end up 
behind bars, even if it takes years of investigation, than for the 
hemorrhaging of the national security data that can be stopped.
  In addition, our FY 2000 intelligence authorization included 
provisions that respond directly to problems raised in the Cox report 
and some of the matters in this amendment. These include new funds for 
such things as red teaming CIA's China analysis, improving CIA 
information security, background investigations, understanding and 
defeating foreign denial and deception techniques which are out there, 
and running more and better offensive operations against hostile 
foreign intelligence services, which we in fact know are conducting 
espionage against the United States of America, its personnel and its 
secrets.
  We provided funds to improve the Department of Energy's 
counterintelligence capabilities, analysis of foreign nuclear programs, 
cyber security and other such matters. We are increasing funds for FBI 
agent training in counterintelligence and DOD acquisition and 
information systems protection. We are funding more linguistic 
capabilities across the intelligence community and many more details we 
are beefing up. It is important we do this because we have let down. 
This amendment helps us. We are in support of it.
  Ms. LEE. Mr. Chairman, I yield one minute to the gentleman from 
Missouri (Mr. Skelton), the ranking member of the Committee on Armed 
Services.
  Mr. SKELTON. Mr. Chairman, I thank the gentlewoman for yielding time 
to me.
  Mr. Chairman, I rise in support of this amendment. It is worthy of 
our support. It is a comprehensive approach put together by experts 
after extensive study. Let me commend the committee that took testimony 
and studied this issue at length. In particular, the gentleman from 
California (Mr. Cox) and the gentleman from Washington (Mr. Dicks) did 
first class work thereon.
  There is no doubt that this amendment is prepared by a bipartisan 
group, and it is certainly timely, because we recently discovered these 
problems. While it might not be perfect, it is a great start for us to 
move into the conference with the Senate.
  I commend the sponsors and those who worked so hard on this 
amendment. I urge my colleagues to support it. Again, I commend the 
gentleman from California (Mr. Cox), the gentleman from Washington (Mr. 
Dicks), and those members of the committee who put so much effort into 
it.
  Ms. LEE. Mr. Chairman, I yield 2 minutes to the gentleman from 
Virginia (Mr. Scott).
  Mr. SCOTT. Mr. Chairman I rise in support of the amendment. As a 
member of the select committee, I want to congratulate the gentleman 
from California (Mr. Cox) and the gentleman from Washington (Mr. Dicks) 
for the bipartisan manner in which they handled this very important 
national security matter.
  I would also like to publicly thank my two colleagues for offering 
our committee's recommendations to the defense authorization bill 
before us today. I urge Members of this body to support and accept the 
bipartisan and unanimous findings and recommendations of the committee 
by voting for this amendment.
  This language, the language in the amendment, gives Congress the 
common ground needed to enhance the Nation's intelligence 
infrastructure and prevent our country from repeating

[[Page H3959]]

many of the episodes which occurred over the past few years.
  Mr. Chairman, we could take the next few hours taking partisan 
potshots that criticize this agency or that administration or in fact 
any Congress over the last 20 years for not taking any of the perceived 
and real espionage threats seriously. However, I believe that this 
House can contribute much more to our country today and begin to move 
forward by focusing on fixing the problem, rather than casting blame. 
This amendment addresses a number of concerns and offers several steps 
to strengthen this country's national security. This is a strong 
bipartisan constructive effort to solve the national security problems 
that our committee examined over the past year, and I urge my 
colleagues to adopt the amendment.
  Mr. COX. Mr. Chairman, I yield 3 minutes to the gentlewoman from New 
Mexico (Mrs. Wilson).
  (Mrs. WILSON asked and was given permission to revise and extend her 
remarks.)
  Mrs. WILSON. Mr. Chairman, I rise in support of the amendment before 
us today, and I wanted to thank the gentleman from California (Mr. Cox) 
and the gentleman from Washington (Mr. Dicks), as well as the gentleman 
from Texas (Mr. Thornberry), the gentlewoman from California (Mrs. 
Tauscher), the gentleman from South Carolina (Mr. Spratt) and their 
staffs for this hard work on this amendment over the last month. This 
is a serious effort by serious people who spent considerable time and 
thought on this problem, and I thank them for their efforts to make our 
laboratories safe from our Nation's adversaries.
  Let me say a word or two about these laboratories. Millions and 
millions of people here and abroad now enjoy personal and political 
freedom because these labs, employing some of the greatest minds in the 
world, have allowed us to defend ourselves against the enemies of 
freedom. The list of Nobel Prize winners from America's national labs 
is staggering. The number of scientific breakthroughs is breathtaking. 
The number of seminal discoveries is unparalleled in any other group of 
institutions in the world. These labs are treasures for science and for 
freedom. It should not surprise us then that these laboratories have 
been the target of systematic, relentless assault by the People's 
Republic of China.
  Over the last few months, through the investigation of the gentleman 
from California (Mr. Cox) and his committee, we have seen the breakdown 
of institutions of government. We have seen one hand of government not 
know what the other hand of government was doing. There were errors and 
omissions and miscommunications and failures of policy and procedure.
  In all of this, one fact remains: With only one exception that we 
know about, the employees of the laboratories remained loyal Americans, 
putting the Nation's interests above their own. That is why this 
amendment is so important. It recognizes that the problem is not the 
people; it is the system, and this amendment addresses the problems in 
the system, across a broad spectrum of activities.
  It directs a review of the organizational structure of our nuclear 
weapons complex; it establishes an office of counterintelligence and 
foreign intelligence within the Department of Energy; it requires each 
lab to have a counterintelligence program; and it establishes a 
counterintelligence polygraph program; it enhances civil and monetary 
penalties; and deals with the issue of foreign visitors in a way that 
protects our national secrets, while allowing our scientists to be 
engaged in a broader scientific community. It also addresses the 
emerging problem of computer security, ensuring there is an annual 
evaluation, an operational evaluation, of national laboratory computer 
systems.
  I want to commend the select committee on its analysis and its 
identification of the serious problem of our failure as a Nation to 
protect our national secrets. This amendment goes a long way toward 
beginning the restoration of that security.
  Ms. LEE. Mr. Chairman, I yield two minutes to the gentlewoman from 
California (Mrs. Tauscher).
  Mrs. TAUSCHER. Mr. Chairman, I thank the gentlewoman for yielding me 
time.
  Mr. Chairman, I rise in strong support of the Cox-Dicks amendment. 
Working with the gentleman from California (Mr. Cox) and the gentleman 
from Washington (Mr. Dicks) and my other colleagues has exemplified the 
bipartisan spirit and cooperation that the nation deserves in 
formulating a sensible response to the security deficiencies at our 
national laboratories.
  The report that the gentleman from California (Mr. Cox) and the 
gentleman from Washington (Mr. Dicks) released last month was startling 
in that it exposed 20 years of systemic failure in our 
counterintelligence operation that spanned several administrations. Our 
intelligence agencies failed to embrace new technologies and our 
counterintelligence units failed to protect our secrets above all else. 
Our gravest error has been the lack of an individual clearly 
responsible for protecting our Nation's secrets.
  This amendment, Mr. Chairman, will take us a long way in solving the 
structural deficiencies in our counterintelligence operation and 
improving security at the laboratories. It establishes a structural 
chain of command with ultimate authority for protecting our secrets 
with the Secretary of Energy and it gives the Secretary the tools to do 
it, such as polygraph examination of scientists with access to the most 
sensitive information and increased financial penalties for employees 
who mishandle classified material.
  We are fortunate that Energy Secretary Richardson has stepped forward 
to assume that responsibility. This legislation provides him with the 
authority and tools he needs to manage the job.
  Mr. Chairman, I urge my colleagues to support this important 
amendment.
  Mr. COX. Mr. Chairman, I yield 2 minutes to the gentleman from 
Pennsylvania (Mr. Weldon).
  (Mr. WELDON of Pennsylvania asked and was given permission to revise 
and extend his remarks.)
  Mr. WELDON of Pennsylvania. Mr. Chairman, I rise in support of this 
legislation, but I do want to make two points. The first point I want 
to make is I want to congratulate both the gentleman from South 
Carolina (Mr. Spence) and the gentleman from Missouri (Mr. Skelton) 
because this is not a new issue for the Committee on Armed Services. In 
fact, during the last several years, it has been a tireless effort on 
behalf of both the gentleman from South Carolina (Mr. Spence) and the 
gentleman from Missouri (Mr. Skelton) to address the very concerns that 
were dealt with in great detail by the Cox committee.
  I can remember having debates on this floor about the elimination, 
largely pushed by our government, of COCOM and that process that 
greatly troubled Members on both sides of the aisle. I can remember 
amendments on past defense bills where we focused on the need to deal 
with the proliferation of the exportation of computers and high 
technology. So I want to give appropriate credit to the authorizing 
committee for the leadership role it has played in the past on these 
issues.
  Secondarily, I want to make the statement that this amendment is not 
the end. It is the beginning. This does not solve all of our problems. 
Our problems are not just with the labs. In fact, many of the problems 
at our labs are created by ourselves when in the 1993-94 time frame we 
did away with the color coded classification status and we put a 
moratorium on the FBI background checks. Those were things we did 
ourselves. We should not have done it back then, and now we are trying 
to right that wrong. But this does not solve all of our problems, and 
we must commit ourselves to work on all of the recommendations 
contained in the Cox committee report, which I had the pleasure of 
serving on.
  Mr. Chairman, the bottom line here is that this is not just a problem 
of our laboratories, it is a problem of our export policies, and this 
is not to say that we want to stop our country from exporting abroad. 
It is a case of providing a common sense approach, working with 
American industry, to make sure we are competitive, but that we do not 
open the door for all kinds of technologies to be sold to Tier III 
nations or those nations that our State Department lists as terrorist 
nations.
  As I said when we released the Cox committee report, the basic 
problem in

[[Page H3960]]

my mind was the failure of our government to protect the American 
people. I am sure we can blame China or we can blame companies, but, in 
the end, our government has failed us. This takes one step forward to 
try to begin to address those concerns.
  Ms. LEE. Mr. Chairman, I yield 3 minutes to the gentleman from South 
Carolina (Mr. Spratt).
  (Mr. SPRATT asked and was given permission to revise and extend his 
remarks.)
  Mr. SPRATT. Mr. Chairman, I rise in support of the amendment and I 
salute the gentleman from California (Mr. Cox) and the gentleman from 
Washington (Mr. Dicks) for taking the lead in working this amendment 
out.
  This amendment started as a bipartisan effort to address the 
counterintelligence problem at DOE. It included the gentleman from 
Texas (Mr. Thornberry), the gentlewoman from New Mexico (Mrs. Wilson), 
the gentleman from Washington (Mr. Dicks), and myself.
  When our amendment was not made in order under the first rule, a 
number of other amendments which really duplicate component parts of 
this were made in order. They are still made in order under this rule, 
which creates a problem. We were principally working as an alternative 
to a moratorium proposed by the gentleman from Kansas (Mr. Ryun) in an 
amendment which will later be brought up which would effectively, in my 
opinion, ban the foreign visitors program at the national laboratories. 
We tried to come up with constructive alternative to that, something 
that would put in this counterintelligence where needed, strengthen 
security, but not abolish the program.
  After the rule was not made in order, the gentleman from California 
(Mr. Cox) joined our effort to come up with a bipartisan compromise, 
and he added provisions to the amendment that relate to export 
controls. We have spent a couple of days trying to iron those out. 
While there are still wrinkles, we have a bill that we think is an 
acceptable piece of work and one we can support.
  I still find problems with it and want to serve notice that we have 
got work to do in conference. For example, just to take as one example, 
section 1407. We direct the President to negotiate an agreement with 
China that will include end use verification of any high performance 
computers that are exported to China.

                              {time}  1430

  I agree with that goal, but I am also realistic. I doubt any 
sovereign nation which has not been defeated in war would agree to end 
use verification without notice. I question the wisdom of legislating 
unattainable objectives.
  Nonetheless, this is better than the original draft. It is a good 
compromise. We still have some work to do in conference. I am 
particularly pleased with section 3109. This addresses the 
controversial issue of foreign visitors to our labs.
  We have crafted a bipartisan provision in the Cox/Dicks amendment 
that will make the necessary security improvements to our labs without 
crippling international programs that are critical to national 
security, Nunn-Lugar, our lab-to-lab programs with the FSU, the former 
Soviet Union, to make sure bomb grade plutonium and uranium will not 
fall into the hands of countries which we do not want to have it, or 
terrorist organizations; training the IAEA inspectors, things like that 
that are constructive, useful, and can only take place at the labs 
because that is where the expertise lies.
  Our provision allows the program to stand but puts new restrictions 
on it. The Ryun amendment in my opinion would require a 2-year 
moratorium that effectively bans the program. We think we have a good 
bipartisan solution here. We recommend the entire amendment.
  We would also say to Members as other amendments come up that this 
amendment really takes care of the Ryun amendment. It is a better 
solution. This amendment makes unnecessary, I would suggest, the 
amendment offered by the gentleman from California (Mr. Hunter) on 
polygraph because we codify the polygraphs requirements the 
administration is now putting in place.
  This also makes unnecessary a number of other amendments because we 
have subsumed them and included them in this particular amendment. It 
is a good amendment. I recommend its adoption.
  Mr. COX. Mr. Chairman, I yield 1 minute to the gentleman from Texas 
(Mr. Thornberry).
  Mr. THORNBERRY. Mr. Chairman, I rise in support of this amendment. I 
have been part of a group that has worked for several weeks on an 
appropriate, constructive proposal to deal with some of the security 
problems we have found.
  I was concerned, frankly, that some of the ideas floating around here 
were simply a reaction, without thinking and working through the 
implications. I was also concerned that some of them focus on just 
little pieces of the problem without looking at the broader problem.
  I think this amendment is balanced. It does deal with the wide range 
of security problems. It is commonsense, but yet it significantly 
improves the security at our nuclear weapons labs and other places, but 
it also allows important work to continue, work that is in our national 
interest. It does not cut off our nose to spite our face.
  I think the other key point to be made is this is not the complete 
response. I agree completely with what the gentleman from California 
(Chairman Cox) has said, that we have more work to do. The Cox 
committee said, for example, we need to look at whether the Department 
of Energy is even equipped to handle the Department of Energy's nuclear 
weapons complex. GAO has said the same thing. We have got more work to 
do to get to the bottom of the problems which arose here.
  Ms. LEE. Mr. Chairman, I yield 4 minutes to the gentlewoman from 
Hawaii (Mrs. Mink).
  Mrs. MINK of Hawaii. Mr. Chairman, I thank the gentlewoman for 
yielding time to me.
  Mr. Chairman, the task the Select Committee on the People's Republic 
of China was given was to investigate breaches in national security, 
and it was a difficult one. Espionage charges against certain spies or 
foreign agents was expected to emanate from this investigation. A lot 
of the information that was alluded to was put in parenthesis to 
indicate that further investigations were ongoing and that the 
administration did not wish to have all of this information disclosed 
at this time.
  There were a few charges, most of them previously noted, some 
including convictions and many others are still under investigation.
  It described, I think, more importantly the general technique used by 
the People's Republic of China. There was detailed discussion regarding 
theft of certain classified information in the report. It described the 
actions of certain U.S. satellite manufacturers which served to 
transfer technology relevant to nuclear missile development. It 
highlighted the failures of the U.S. security system to protect these 
important nuclear secrets.
  I think that all of these are important disclosures on how these 
breaches of national security occurred. I think the committee needs to 
be applauded for pointing this out and bringing it to the attention of 
the Congress of the United States.
  I rise today, however, to caution my colleagues on the implementation 
of these concerns we have heard articulated today, that we do not 
indirectly or maybe purposefully encourage race-baiting our loyal 
American citizens who are following the law, making important 
contributions in our nuclear labs and in other sensitive areas in 
private industry, making important, notable achievements to our 
scientific knowledge and our database, to our country; and that these 
individuals, if they are Chinese or Asians generally, are not singled 
out for special considerations, for special testing, for security 
investigations, perhaps even having their security clearances pulled 
while ongoing further investigations happen.
  I think it is important for people not to say, we have three volumes 
of reports and it is significant, and rely on the newspaper's account. 
I call to the attention of this body three pages at least, page 91, 
pages 40, 41, and page 2, and commend this Congress to read it.
  Volume I, Page 91 is particularly disconcerting to most of us who are 
concerned about the potential of scapegoating loyal Americans. Page 91

[[Page H3961]]

says, ``The PRC employs various approaches to coop U.S. scientists to 
obtain classified information. These approaches include appealing to 
common ethnic heritage, arranging visits to ancestral homes and 
relatives, paying for trips and travel to the PRC, flattering the 
guest's knowledge and intelligence, holding elaborate banquets to honor 
these guests, and doggedly peppering U.S. scientists with technical 
questions.''
  On page 40, Mr. Chairman, it says ``U.S. scientists who are overseas 
in the PRC are prime targets for approaches by professional and 
nonprofessional PRC organizations who would like to coopt them. Select 
committees have received information about Chinese American scientists 
from the U.S. nuclear design labs being identified in this manner.''
  Page 41 says, ``The number of PRC nationals attending educational 
institutions in the U.S. presents another opportunity for the PRC to 
collect sensitive technology. It is estimated that at any given time, 
there are over 100,000 PRC nationals who are attending U.S. 
universities who have remained in the U.S. after graduating.''
  It goes on further to say, ``The Select Committee judges that the PRC 
is increasingly looking to PRC scholars who remain in the U.S. as 
assets who have developed a network of personal contacts that can be 
helpful to the PRC.''
  I submit that all of this suggestive language enlarges the reach of 
the investigation and interjects doubt and suspicion regarding all of 
the Chinese American citizens who are here who are in fact loyal 
American citizens.
  I caution this Congress to pay attention to the potential harm this 
kind of allegation can bring to this large, loyal segment of our 
American community.
  Mr. COX. Mr. Chairman, I yield 3 minutes to the gentleman from Texas 
(Mr. DeLay), the House majority whip.
  Mr. DeLAY. Mr. Chairman, I rise in support of this amendment brought 
to us by the gentleman from California (Mr. Cox) and the gentleman from 
Washington (Mr. Dicks), and I congratulate the two of them for an 
outstanding job and a great service to the American people. Also I 
commend their committee. The American people owe them a great deal of 
praise for the work they have done.
  American national security has been squandered for too long. It is 
time for this Congress to correct that problem. The revelations in the 
Cox report could not be more startling. The People's Republic of China 
orchestrated a multifaceted cabal of spies to methodically steal all of 
America's nuclear secrets. This theft by the Communist Chinese was so 
complete that the bipartisan Committee on National Security has 
concluded that the PRC's nuclear weapons design is now on a par with 
our own.''
  I know the press is trying to sweep this story under the rug. The 
fiasco exposed in the Cox report is being painted as simply another 
innocent and unavoidable blunder where no one is to blame. In other 
words, it is no big deal. But considering the military ambitiousness of 
Red China, there can be no doubt that this is only the tip of the 
iceberg. They are going full steam ahead with their nuclear weapons 
program, and using our technology to build it.
  Because of gross negligence at the White House, future PRC warheads 
aimed at the United States will largely be the product of American 
expertise. Predictably, the Clinton administration is trying to ride 
out this storm, like it always does. The difference is this tempest 
puts our whole Nation at risk. There can be no compromises when the 
security of America is at stake. We have to shore up security and 
counterintelligence failures, and begin a serious battle against 
espionage.
  This amendment does that by establishing new procedures to combat the 
vulnerability of classified technology. It also requires the President 
to submit detailed reports to Congress on security matters concerning 
our arsenals in Red China.
  This amendment is only the beginning. Much more must be done, because 
there are consequences to the President's careless disregard to protect 
classified information, and it is time we tackle that problem. 
Americans can be reassured, and China should know that this issue will 
not fade away. This is just the first step.
  China must not mistake the weakness of our President for the weakness 
of the American people. Congress must be strong where the 
administration has been weak. We need to flex our muscles and let the 
world know that America takes its national security seriously.
  Ms. LEE. Mr. Chairman, I yield 2 minutes to the gentleman from Guam 
(Mr. Underwood).
  (Mr. UNDERWOOD asked and was given permission to revise and extend 
his remarks.)
  Mr. UNDERWOOD. Mr. Chairman, first I want to commend both the 
chairman, the gentleman from California (Mr. Cox) and the ranking 
member, the gentleman from Washington (Mr. Dicks) on this report, and 
for working diligently on the issues of security presented by the 
recent situation that we face at the Department of Energy. I want to 
particularly thank them for the deliberate nature in which they 
addressed these issues, and also for not politicizing it, unlike some 
people who have come to the floor.
  In times of concern over national security, we must remind ourselves 
that sparing no effort to ensure our national security should not be at 
the expense of our basic beliefs about the civil rights of our people 
as a whole, as members of ethnic groups, and as individuals. In times 
of heightened concern about the national security, it is sometimes all 
too easy to conclude that there may be groups of people among us who 
are contributing to our national insecurity.
  The most tragic example in American history was the treatment of 
Japanese Americans during World War II, but in recent memory we have 
stigmatized Arab Americans, especially in the immediate reaction to the 
Oklahoma bombing.
  Of course, we have many allegations of racial and ethnic profiling in 
many communities around the country. It is vitally important to our 
national security to continue to ensure the security of our military 
secrets, but also our civil rights. We should spare no effort to ensure 
that no one is profiled or stigmatized or asked additional questions or 
given special treatment or subjected to lie detector tests because of 
their ethnic background.
  We must stand firmly for the national security of our military 
knowledge and our military technology, but equally firm for civil 
rights and fair treatment, which marks our society as unique in the 
world.
  I wish to express my concern that Asian-Pacific Americans are not 
placed under a cloud of suspicion, and that all of the procedures being 
suggested today, as I know they have by both the gentleman from 
California (Chairman Cox) and the ranking member, the gentleman from 
Washington (Mr. Dicks),that every one be examined for any potential 
problems. Let us make sure that all our security concerns really deal 
only with security concerns.
  Mr. COX. Mr. Chairman, I yield 3\1/2\ minutes to the gentleman from 
New York (Mr. Gilman), the chairman of the Committee on International 
Relations.
  (Mr. GILMAN asked and was given permission to revise and extend his 
remarks.)
  Mr. GILMAN. Mr. Chairman, I thank the chairman for yielding time to 
me.
  Mr. Chairman, I am pleased to rise in strong support of the Cox/Dicks 
amendment, which implements key recommendations of the Select Committee 
on the U.S. National Security amd Military/Commercial Concerns for the 
People's Republic of China.
  I want to thank the gentleman from California (Mr. Cox) for working 
with our Committee on International Relations to modify many of those 
provisions in his amendment that fall within our committee's 
jurisdiction. I am both gratified and saddened by the success of the 
Select Committee.
  The gentleman from California (Mr. Cox), the gentleman from 
Washington (Mr. Dicks), and their colleagues on the Select Committee, 
including the gentleman from Nebraska (Mr. Bereuter), one of the 
subcommittee members, have provided an outstanding service by exposing 
not only Chinese espionage against the crown jewels of our defense 
establishment, but in bringing to light the failure of the Clinton 
administration to safeguard our military secrets

[[Page H3962]]

and in putting trade and commerce ahead of our national security.
  The advances in nuclear weapons and ballistic missiles that China 
will reap from their acquisition of American science and technology 
directly undermine the fundamental national security of our Nation.

                              {time}  1445

  The impact of the loss of these military-related secrets to the 
national interests of our Nation and to peace and stability of Asia, 
though, is incalculable.
  In addition, we must be greatly concerned about the prospects of 
Chinese proliferation of stolen American nuclear and missile secrets to 
rogue regimes and others in the Middle East and in South Asia.
  Beijing's aggressive actions have in fact proven what many have long 
suspected: that the Chinese view our Nation, not as a strategic 
partner, but as a chief strategic obstacle to its own geopolitical 
ambitions.
  The continued assertion by this administration that the United States 
and China are strategic partners is naive and misguided and certainly 
cannot be found in Chinese actions and policies to date.
  Regrettably, the Clinton administration's response to this threat to 
our national interest is at best anemic. The Congress has a great deal 
to do to rectify the problems that have properly been identified by the 
Cox committee.
  This legislative package is the sound first step in addressing those 
problems. Our Committee on International Relations stands committed to 
working with the Committee on Armed Services in fully investigating 
these issues and in implementing the Cox committee's recommendations.
  The Committee on International Relations has already held two 
hearings to hear testimony from the gentleman from California (Mr. Cox) 
and the gentleman from Washington (Mr. Dicks), and we have already 
acted on one of the select committee's recommendations. That provision 
is included in the measure that we will be taking up next week, H.R. 
973, the Security Assistance Act of 1999. That bill includes a 
provision to impose higher civil and criminal penalties against 
companies which violate our export laws.
  I urge my colleagues to support the amendment and to support the Cox-
Dicks report.
  Ms. LEE. Mr. Chairman, I yield 1\1/2\ minutes to the gentlewoman from 
California (Ms. Pelosi).
  Ms. PELOSI. Mr. Chairman, I want to take the occasion of the debate 
on the report, on the Cox-Dicks report, to comment on comments made by 
our colleagues, the gentlewoman from Hawaii (Mrs. Mink) and the 
gentleman from Guam (Mr. Underwood) regarding the issue of sensitivity 
on the issue of our Asian-American community.
  But sensitivity is not really enough of a word. We certainly have to 
be sensitive as we go forward that the FBI in its investigations does 
not look into the background of anyone because of their ethnic 
background or their surname. Certainly they must be sensitive, but we 
have to make certain that one of the casualties of this investigation 
is not the good reputations of the people who have been so important to 
our national security--people from our Asian-American community, with 
their brilliance, with their patriotism, with their dedication.
  I hope that as we go forward with all of these amendments and all of 
the investigations that will continue, that we do not shed a light of 
suspicion on individuals or companies or concerns in America. I happen 
to be blessed in my district with a large Asian-American population, 
mostly Chinese American. Many of those families have been there longer 
than my own. They have been there for many generations. Some have been 
there for only many days. But all of them love America.
  They came here for a reason. We are the freest country in the world, 
and we cannot let this espionage investigation jeopardize that. Our 
country's attitude toward people and their rights cannot be a casualty 
of this investigation. I am particularly concerned, as one who has 
never pulled a punch in criticizing China and its activities in terms 
of human rights, proliferation and trade. I want to say here 
unequivocally that the jeopardizing of our rights in this country would 
be a more destructive consequence than any espionage we can find in 
this investigation.
  Mr. COX. Mr. Chairman, I reserve the balance of my time.
  Ms. LEE. Mr. Chairman, I yield 2 minutes to the gentleman from New 
Jersey (Mr. Menendez).
  (Mr. MENENDEZ asked and was given permission to revise and extend his 
remarks.)
  Mr. MENENDEZ. Mr. Chairman, I intend to support this amendment. But I 
really have real concerns when there are those who would use national 
security to achieve partisan political advantage. However, in their 
zealous effort to make this a partisan political issue, even though it 
goes back 2 decades and even though it includes efforts during 
Republican administrations to have some turn us back to the Stone Age.
  There was an original amendment which would have restricted the 
export of your basic laptop computer to China. That simply is not 
reality.
  We need to proceed as we move on beyond this amendment cautiously 
with this debate. This near faux pax would have been disastrous for 
American industry while having no impact on China. We need to carefully 
consider how to best address our national security while simultaneously 
taking into consideration the reality of today's global marketplace, 
and we need to understand that America does not have a monopoly on 
advanced technology.
  Now, the Subcommittee on International Economic Policy and Trade, of 
which I am the ranking Democrat, has jurisdiction over the Nation's 
export control policies. I am disconcerted that we have not had an 
opportunity to consider the proposals contained in the amendment before 
us in the subcommittee or in the full committee.
  So we look forward to working on those issues in the days ahead. But 
the issues raised in the Cox-Dicks report are not partisan issues. 
Democrats and Republicans are equally concerned about our national 
security.
  So let us proceed with caution and address the issues raised by the 
report in a responsible manner, with the full input of the relevant 
committees, industries, and government agencies. Let us not unfairly 
stigmatize Americans of Asian descent who have contributed to the 
greatness of this country.
  I believe that everyone in this Chamber wants to ensure the national 
security of the United States. But we also have to do it in a way that 
keeps the tip of the iceberg in terms of America's technology away from 
those others who may not have it in the global marketplace, but make 
sure we are competitive in all other respects. No one has a cornerstone 
on national security interest in this Chamber.
  Ms. LEE. Mr. Chairman, I yield 45 seconds to the distinguished 
gentleman from Connecticut (Mr. Gejdenson), the ranking member of the 
Committee on International Relations.
  Mr. GEJDENSON. Mr. Chairman, I have heard some of the debate here. 
Some try to make it seem that this is a Clinton-era problem. It is hard 
to make that argument with problems that date back to 1982. Some of the 
Members who spoke on the floor said, oh, this is just because we lost 
COCOM. COCOM left us. We never lost it. They left us once the Soviet 
Union fell apart.
  We cannot get our allies to agree to fully significant controls. The 
Bush administration could not save it, and the Clinton administration 
could not save it. We have to deal with that reality, or we will take 
actions here that will only injure American dominance in these high-
tech areas.
  Ms. LEE. Mr. Chairman, I yield 45 seconds to the gentleman from 
Washington (Mr. Dicks).
  Mr. DICKS. Mr. Chairman, I want to, just as we end this debate, again 
thank the gentleman from California (Mr. Cox) and his staff for the 
cooperation we have had in drafting this amendment. I think this 
amendment will go a long ways to dealing with the security problems at 
our national labs.
  I can tell my colleagues, Secretary Bill Richardson, Ed Curran, one 
of our finest FBI leaders in this country, are committed to finally 
getting this problem cured and resolved. This is the heart and soul of 
this amendment. It is the heart and soul of our report.
  I want to thank all of my colleagues, the gentleman from South 
Carolina (Mr. Spratt), the gentleman from Virginia (Mr. Scott), and the 
gentlewoman from California (Ms. Roybal-

[[Page H3963]]

Allard) for their leadership on the committee.
  We had a good team, and the Republicans had a good team. Let us have 
an overwhelming vote for this Cox-Dicks amendment.
  Mr. COX. Mr. Chairman, I yield 1 minute to the gentleman from 
California (Mr. Cunningham).
  Mr. CUNNINGHAM. Mr. Chairman, I rise in strong support of the Cox-
Dicks amendment. It is one thing to spin that administration to 
administration had problems; it is another thing for the President of 
the United States to know about it, be briefed in 1996, and do nothing. 
That is what in my opinion is criminal.
  Let me give my colleagues a couple of ideas. I encourage all of my 
colleagues to go and get the classified brief. We had an asset, I 
cannot tell my colleagues what it is on the floor. We were building a 
countermeasure for that asset. It would not have worked. We got the 
asset. It not only saved the billion dollars, now we can build it.
  Secondly, we have an asset against our fighter pilots. Ninety percent 
of the time, both in the intercept and in the engagement, our pilots 
die. We have that asset. It also helps us design what we need into the 
joint strike fighter, what we do into the F-22.
  Doing the opposite things gives the Chinese, not only saving billions 
of dollars for a W-88 warhead and our technology, but it allows them to 
be more dangerous in the weapons that they could put at the United 
States. So this Cox-Dicks amendment is very very important. It is a 
good first step.
  Mr. COX. Mr. Chairman, I yield 1 minute to the gentleman from San 
Diego, California (Mr. Hunter).
  Mr. HUNTER. Mr. Chairman, I want to thank the two authors of the 
report along with all the committee members who participated in it.
  This amendment is very strong in a couple of ways. It gives at least 
a temporary review to the Department of Defense for militarily critical 
technology that could be sent to potential adversaries. That is a very 
important thing.
  It also tries to reinstate a structure, a multilateral structure 
where we can persuade our friends, other nations, our allies to join 
with us in restricting militarily critical technology from going to 
potential enemies.
  Now, let me just say there is unfinished business in this report and 
in this amendment. After this thing passes, we will still have 
supercomputers going to China where we have no end use verification. We 
will still be sending American satellites to China for launch by their 
Long March rockets which also is a mainstay of their nuclear and 
strategic assets.
  We will still, after a fairly short moratorium, be allowing visits to 
the 65 scientists who came from Algeria, Cuba, Libya, Iran, and Iraq 
into our national weapons labs.
  There is unfinished business. I look forward to voting for this 
amendment and moving ahead to complete the job.
  Mr. COX. Mr. Chairman, may I inquire how much time remains on each 
side?
  The CHAIRMAN. The gentleman from California (Mr. Cox) has 1 minute 
remaining and the right to close.
  Mr. COX. Mr. Chairman, I yield myself such time as I may consume.
  I would like, as essentially all of the other speakers have done thus 
far, once again to thank the gentleman from Washington (Mr. Dicks), the 
ranking member on the select committee, and thank all of the chairmen 
and ranking members of the committees of jurisdiction who have worked 
with us on this amendment.
  This amendment does not cover many of the important topics of our 
recommendations. Some of the debate here has focused on export controls 
on computers. There is nothing about export controls on computers in 
this amendment.
  It is also important to recognize that hard work remains ahead for 
our standing committees. I think that the ranking member and I will be 
testifying before several of them to move this legislation along.
  Lastly, some mention has been made on the floor about racial and 
ethnic profiling by the Communist Party of China. The CCP ethnic and 
racial profiling that is detailed in our report is a significant 
distinction between the Communist Party and America.
  In this country, the liberty and dignity of the individual are 
paramount. We do not think of people as members of groups or 
essentially tools of the State. That is why what we are investing in 
our armed services, in our intelligence community, and our national 
laboratories is so important. It is for the pursuit of freedom, not 
just for Americans, but for people around the world. That is ultimately 
the purpose to which this amendment is directed. I urge my colleagues 
to support it.
  Ms. ROYBAL-ALLARD. Mr. Chairman, as a member of the Select Committee 
on China, I rise in support of the Dicks/Cox amendment to the 
Department of Defense Authorization bill.
  Chairman Cox and Ranking Member Norm Dicks have crafted a 
responsible, bi-partisan amendment that addresses many of the problems 
the Select Committee found during its six month investigation.
  This amendment implements most of the President's recommendations for 
tightening security at our national labs, including establishing an 
independent Office of Counterintelligence at the Department of Energy 
with direct line to the Secretary of Energy. It requires polygraphing 
of all Department of Energy lab employees who have access to sensitive 
nuclear information, and increases the civil and criminal penalties for 
mishandling of classified information. The amendment also tightens the 
security of the computer system at the national labs.
  In addition, the amendment places a temporary moratorium on foreign 
visitors from sensitive countries to our national labs until these 
strong security and counter-intelligence measures are in place. It also 
requires, the Department of Energy to submit a comprehensive annual 
report to Congress on security and counterintelligence at all DOE 
defense facilities to ensure that these measures are indeed protecting 
our national security.
  In the area of technology exports, the amendment implements many of 
the Select Committee's recommendations, including requiring a 
comprehensive report on the adequacy of current export controls in 
preventing the loss of militarily significant technology to China. It 
also requires a report on the effect of High Performance Computers sold 
to China, and requires that the President negotiate with China to 
ensure that the computers we export to them are used for their stated 
purpose.
  Another area that the committee investigated was the adequacy of U.S. 
policies regarding security at Chinese satellite launch sides. 
Unfortunately, what we found was that there are numerous problems with 
the security personnel hired by U.S. satellite companies. These 
include, guards sleeping on the job, an insufficient number of security 
personnel at launch site, and guards reporting to work under the 
influence of alcohol. The committee also found numerous deficiencies in 
the Defense Department's monitoring an oversight of satellite launches 
in China.
  Therefore, I am pleased that the Dicks/Cox amendment includes 
provisions to address these problems, such as mandating new minimum 
standards for security guards on satellite launch campaigns, requiring 
the Department of Defense to develop technology transfer control plans 
and requiring that the Department of Defense contract the guard force 
for security at the launch sites. Finally, the amendment ensures that 
the Defense Department monitors assigned to foreign launches have the 
adequate training and support to properly execute their jobs.
   In closing, I'd like to echo the statements of my colleagues on the 
Select Committee. Many of the findings contained in the Cox Committee 
report are indeed grave. This responsible amendment is an important 
first step towards addressing these findings and ensuring that our 
national security is protected. For that reason, I hope my colleagues 
in Congress will vote in favor of this important, bipartisan amendment.

                              {time}  1500

  The CHAIRMAN. All time has expired.
  The question is on the amendment offered by the gentleman from 
California (Mr. Cox).
  The question was taken; and the Chairman announced that the ayes 
appeared to have it.


                             Recorded Vote

  Mr. DICKS. Mr. Chairman, I demand a recorded vote.

[[Page H3964]]

  A recorded vote was ordered.
  The vote was taken by electronic device, and there were--ayes 428, 
noes 0, not voting 6, as follows:




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