S.Amdt. 676

1. Adds TITLE _--TRANSPARENCY REQUIREMENTS FOR FOREIGN-HELD DEBT wherever appropriate

   Adds a title

   Inserted: TITLE _--TRANSPARENCY REQUIREMENTS FOR FOREIGN-HELD DEBT

   Inserted: SEC. _01. SHORT TITLE.

   Inserted: This title may be cited as the "Foreign-Held Debt Transparency and Threat Assessment Act".

   Inserted: SEC. _02. DEFINITIONS.

   Inserted: In this title:

   Inserted: (1) Appropriate congressional committees.--The term "appropriate congressional committees" means the following:

   Inserted: (A) The Committee on Armed Services, the Committee on Foreign Relations, the Committee on Finance, and the Committee on the Budget of the Senate.

   Inserted: (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.

   Inserted: (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.

   Inserted: SEC. _03. SENSE OF CONGRESS.

   Inserted: It is the sense of Congress that--

   Inserted: (1) the growing Federal debt of the United States has the potential to jeopardize the national security and economic stability of the United States;

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   Inserted: (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;

   Inserted: (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;

   Inserted: (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;

   Inserted: (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;

   Inserted: (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

   Inserted: (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.

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

   Inserted: (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.

   Inserted: (b) Matters To Be Included.--Each report submitted under this section shall include the following:

   Inserted: (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.

   Inserted: (2) The country of domicile of all foreign creditors who hold debt instruments of the United States.

   Inserted: (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.

   Inserted: (4) For each foreign country listed in paragraph (2)--

   Inserted: (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;

   Inserted: (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

   Inserted: (C) a specific determination of whether the level of risk identified under subparagraph (B) is acceptable or unacceptable.

   Inserted: (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.

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

   Inserted: (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.

   Inserted: (b) Content of Report.--Each report submitted under this section shall include the following:

   Inserted: (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.

   Inserted: (2) A specific determination of whether the levels of risk identified under paragraph (1) are sustainable.

   Inserted: (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.

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

   Inserted: 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, the President shall, within 30 days of the determination--

   Inserted: (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;

   Inserted: (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

   Inserted: (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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   Original wording

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As printed