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 4326. Mr. BAUCUS (for himself, Mr. Kerry, and Mr. Dodd) 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;
which was ordered to lie on the table; as follows:

At the appropriate place, insert 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, the Committee on
Banking, Housing, and Urban Affairs, 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, the
Committee on Financial Services, 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 held by the public and issued or guaranteed by the
United States or by an entity of the United States
Government.

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) large foreign holdings of debt instruments of the
United States have the potential to make the United States
vulnerable to undue influence by foreign creditors in
national security and economic policymaking;
(3) the People's Republic of China, Japan, and the United
Kingdom are the 3 largest foreign holders of debt instruments
of the United States; and
(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.

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

(a) Annual Report.--Not later than March 31 of each year,
the Secretary of the Treasury 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 9 months preceding the date of
the report.
(2) The total amount of debt instruments of the United
States that are held by foreign residents, broken out by the
residents' country of domicile and by public and private
residents.
(3) An analysis of the current and foreseeable risks to the
long-term national security and economic stability of the
United States posed by foreign holdings of debt instruments
of the United States.
(c) Public Availability.--The Secretary of the Treasury
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.

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

(a) In General.--Not later than March 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) Specific recommendations for reducing the levels of
risk resulting from the Federal debt.

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

If the President determines that foreign 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, the President shall, within 30 days of the
determination--
(1) formulate a plan of action to reduce such risk;
(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.
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