Declares that in furtherance of the principle of maintaining peace and stability in the Western Pacific area, the United States shall make available to Taiwan such defense articles and defense services in such quantity as may be necessary to enable Taiwan to maintain a sufficient self-defense capacity as determined by the President and the Congress. Requires such determination of Taiwan's defense needs to be reviewed by United States military authorities in connection with recommendations to the President and the Congress.
Directs the President to inform the Congress promptly of threats to the security or the social or economic system of the people on Taiwan, and any danger to the United States interests arising from such threats. Specifies that the President and the Congress shall determine the appropriate action in response to any such danger.
