To increase transparency regarding debt instruments of the United States held by foreign governments, to assess the risks to the United States of such holdings, and for other purposes.

SA 4302. Mr. CORNYN (for himself and Mr. Kyl) submitted an amendment
intended to be proposed to amendment SA 4301 proposed by Mr. Baucus to
the bill H.R. 4213, to amend the Internal Revenue Code of 1986 to
extend certain expiring provisions, and for other purposes; as follows:

=========================== NOTE ===========================

On page S4696, June 8, 2010, in the second column, the following
appears: SA 4302. Mr. CORNYN (for himself and Mr. Kyl) submitted
an amendment intended to be proposed by him to the bill H.R. 4213,
to amend the Internal Revenue Code of 1986 to extend certain
expiring provisions, and for other purposes; as follows:

The online version has been corrected to read: SA 4302. Mr.
CORNYN (for himself and Mr. Kyl) submitted an amendment intended
to be proposed to amendment SA 4301 proposed by Mr. Baucus to the
bill H.R. 4213, to amend the Internal Revenue Code of 1986 to
extend certain expiring provisions, and for other purposes; as
follows:

========================= END NOTE =========================

At the appropriate place, add the following:

TITLE __--TRANSPARENCY REQUIREMENTS FOR FOREIGN-HELD DEBT

SEC. _01. SHORT TITLE.

This title may be cited as the ``Foreign-Held Debt
Transparency and Threat Assessment Act''.

SEC. _02. DEFINITIONS.

In this title:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means the following:
(A) The Committee on Armed Services, the Committee on
Foreign Relations, the Committee on Finance, and the
Committee on the Budget of the Senate.
(B) The Committee on Armed Services, the Committee on
Foreign Affairs, the Committee on Ways and Means, and the
Committee on the Budget of the House of Representatives.
(2) Debt instruments of the united states.--The term ``debt
instruments of the United States'' means all bills, notes,
and bonds issued or guaranteed by the United States or by an
entity of the United States Government, including any
Government-sponsored enterprise.

SEC. _03. SENSE OF CONGRESS.

It is the sense of Congress that--
(1) the growing Federal debt of the United States has the
potential to jeopardize the national security and economic
stability of the United States;
(2) the increasing dependence of the United States on
foreign creditors has the potential to make the United States
vulnerable to undue influence by certain foreign creditors in
national security and economic policymaking;
(3) the People's Republic of China is the largest foreign
creditor of the United States, in terms of its overall
holdings of debt instruments of the United States;
(4) the current level of transparency in the scope and
extent of foreign holdings of debt instruments of the United
States is inadequate and needs to be improved, particularly
regarding the holdings of the People's Republic of China;
(5) through the People's Republic of China's large holdings
of debt instruments of the United States, China has become a
super creditor of the United States;
(6) under certain circumstances, the holdings of the
People's Republic of China could give China a tool with which
China can try to manipulate the domestic and foreign
policymaking of the United States, including the United
States relationship with Taiwan;
(7) under certain circumstances, if the People's Republic
of China were to be displeased with a given United States
policy or action, China could attempt to destabilize the
United States economy by rapidly divesting large portions of
China's holdings of debt instruments of the United States;
and
(8) the People's Republic of China's expansive holdings of
such debt instruments of the United States could potentially
pose a direct threat to the United States economy and to
United States national security. This potential threat is a
significant issue that warrants further analysis and
evaluation.

SEC. _04. QUARTERLY REPORT ON RISKS POSED BY FOREIGN HOLDINGS
OF DEBT INSTRUMENTS OF THE UNITED STATES.

(a) Quarterly Report.--Not later than March 31, June 30,
September 30, and December 31 of each year, the President
shall submit to the appropriate congressional committees a
report on the risks posed by foreign holdings of debt
instruments of the United States, in both classified and
unclassified form.
(b) Matters To Be Included.--Each report submitted under
this section shall include the following:
(1) The most recent data available on foreign holdings of
debt instruments of the United States, which data shall not
be older than the date that is 7 months preceding the date of
the report.
(2) The country of domicile of all foreign creditors who
hold debt instruments of the United States.
(3) The total amount of debt instruments of the United
States that are held by the foreign creditors, broken out by
the creditors' country of domicile and by public, quasi-
public, and private creditors.
(4) For each foreign country listed in paragraph (3)--
(A) an analysis of the country's purpose in holding debt
instruments of the United States and long-term intentions
with regard to such debt instruments;
(B) an analysis of the current and foreseeable risks to the
long-term national security and economic stability of the
United States posed by each country's holdings of debt
instruments of the United States; and
(C) a specific determination of whether the level of risk
identified under subparagraph (B) is acceptable or
unacceptable.
(c) Public Availability.--The President shall make each
report required by subsection (a) available, in its
unclassified form, to the public by posting it on the
Internet in a conspicuous manner and location.

[[Page S4697]]

SEC. _05. ANNUAL REPORT ON RISKS POSED BY THE FEDERAL DEBT OF
THE UNITED STATES.

(a) In General.--Not later than December 31 of each year,
the Comptroller General of the United States shall submit to
the appropriate congressional committees a report on the
risks to the United States posed by the Federal debt of the
United States.
(b) Content of Report.--Each report submitted under this
section shall include the following:
(1) An analysis of the current and foreseeable risks to the
long-term national security and economic stability of the
United States posed by the Federal debt of the United States.
(2) A specific determination of whether the levels of risk
identified under paragraph (1) are sustainable.
(3) If the determination under paragraph (2) is that the
levels of risk are unsustainable, specific recommendations
for reducing the levels of risk to sustainable levels, in a
manner that results in a reduction in Federal spending.

SEC. _06. CORRECTIVE ACTION TO ADDRESS UNACCEPTABLE AND
UNSUSTAINABLE RISKS TO UNITED STATES NATIONAL
SECURITY AND ECONOMIC STABILITY.

In any case in which the President determines under section
___04(b)(4)(C) that a foreign country's holdings of debt
instruments of the United States pose an unacceptable risk to
the long-term national security or economic stability of the
United States, or the Comptroller General of the United
States makes a determination under section ___5(b)(3), the
President shall, within 30 days of the determination--
(1) formulate a plan of action to reduce the risk level to
an acceptable and sustainable level, in a manner that results
in a reduction in Federal spending;
(2) submit to the appropriate congressional committees a
report on the plan of action that includes a timeline for the
implementation of the plan and recommendations for any
legislative action that would be required to fully implement
the plan; and
(3) move expeditiously to implement the plan in order to
protect the long-term national security and economic
stability of the United States.
______