A bill to promote the foreign policy of the United States through the maintenance of commercial, cultural, and other relations with the people of Taiwan on an unofficial basis, and for other purposes.

Title I: Authorizes continued relations with the people of Taiwan, despite the lack of diplomatic recognition of the government of Taiwan. Provides for relations between the United States and Taiwan to be conducted by or through the American Institute in Taiwan and an instrumentality established by the people on Taiwan.

Title II: Authorizes U.S. departments and agencies to furnish and accept service to and from the Institute. Stipulates that alien employees of U.S. departments and agencies be transferred to the Institute. Authorizes U.S. departments and agencies to allow Federal officers and employees to separate from Federal service and accept employment with the Institute. Provides for the reinstatement of such employees with their former department or agency with no loss of rights and benefits.

Stipulates that the Institute shall be treated as a tax-exempt organization and shall not be an agency or instrumentality of the United States. Stipulates that employees of the Institute shall not be Federal employees. Exempts Institute employees from the conflict of interest provision of Federal law (18 U.S.C. 207). Treats the salaries and allowances paid to Institute employees the same, for income tax purposes, as salaries and allowances paid to Federal employees.

Title III: Authorizes the appropriation of Funds necessary to carry out the provisions of this Act. Authorizes the Secretary of State to use such funds to maintain commercial, cultural, and other relations with Taiwan.