To authorize the transfer of naval vessels to certain foreign countries.

SECTION 1. AUTHORITY TO TRANSFER NAVAL VESSELS TO CERTAIN FOREIGN 
              COUNTRIES.

    (a) Brazil.--The Secretary of the Navy is authorized to transfer to 
the Government of Brazil the ``THOMASTON'' class dock landing ships 
ALAMO (LSD 33) and HERMITAGE (LSD 34), and the ``GARCIA'' class 
frigates BRADLEY (FF 1041), DAVIDSON (FF 1045), SAMPLE (FF 1048), and 
ALBERT DAVID (FF 1050). Such transfers shall be on a grant basis under 
section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j).
    (b) Dominican Republic.--The Secretary of the Navy is authorized to 
transfer to the Government of the Dominican Republic the medium 
auxiliary floating dry dock AFDM 2. Such transfer shall be on a grant 
basis under section 516 of the Foreign Assistance Act of 1961 (22 
U.S.C. 2321j).
    (c) Ecuador.--The Secretary of the Navy is authorized to transfer 
to the Government of Ecuador the ``OAK RIDGE'' class medium auxiliary 
repair dry dock ALAMOGORDO (ARDM 2). Such transfer shall be on a sales 
basis under section 21 of the Arms Export Control Act (22 U.S.C. 2761).
    (d) Egypt.--The Secretary of the Navy is authorized to transfer to 
the Government of Egypt the ``NEWPORT'' class tank landing ships 
BARBOUR COUNTY (LST 1195) and PEORIA (LST 1183). Such transfers shall 
be on a sales basis under section 21 of the Arms Export Control Act (22 
U.S.C. 2761).
    (e) Greece.--(1) The Secretary of the Navy is authorized to 
transfer to the Government of Greece the ``KNOX'' class frigate CONNOLE 
(FF 1056). Such transfer shall be on a grant basis under section 516 of 
the Foreign Assistance Act of 1961 (22 U.S.C. 2321j).
    (2) The Secretary of the Navy is authorized to transfer to the 
Government of Greece the medium auxiliary floating dry dock COMPETENT 
(AFDM 6). Such transfer shall be on a sales basis under section 21 of 
the Arms Export Control Act (22 U.S.C. 2761).
    (f) Mexico.--The Secretary of the Navy is authorized to transfer to 
the Government of Mexico the ``NEWPORT'' class tank landing ship 
NEWPORT (LST 1179) and the ``KNOX'' class frigate WHIPPLE (FF 1062). 
Such transfers shall be on a sales basis under section 21 of the Arms 
Export Control Act (22 U.S.C. 2761).
    (g) Poland.--The Secretary of the Navy is authorized to transfer to 
the Government of Poland the ``OLIVER HAZARD PERRY'' class guided 
missile frigate CLARK (FFG 11). Such transfer shall be on a grant basis 
under section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 
2321j).
    (h) Taiwan.--The Secretary of the Navy is authorized to transfer to 
the Taipei Economic and Cultural Representative Office in the United 
States (which is the Taiwan instrumentality designated pursuant to 
section 10(a) of the Taiwan Relations Act) the ``NEWPORT'' class tank 
landing ship SCHENECTADY (LST 1185). Such transfer shall be on a sales 
basis under section 21 of the Arms Export Control Act (22 U.S.C. 2761).
    (i) Thailand.--The Secretary of the Navy is authorized to transfer 
to the Government of Thailand the ``KNOX'' class frigate TRUETT (FF 
1095). Such transfer shall be on a grant basis under section 516 of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2321j).
    (j) Turkey.--The Secretary of the Navy is authorized to transfer to 
the Government of Turkey the ``OLIVER HAZARD PERRY'' class guided 
missile frigates FLATLEY (FFG 21) and JOHN A. MOORE (FFG 19). Such 
transfers shall be on a sales basis under section 21 of the Arms Export 
Control Act (22 U.S.C. 2761).

SEC. 2. INAPPLICABILITY OF AGGREGATE ANNUAL LIMITATION ON VALUE OF 
              TRANSFERRED EXCESS DEFENSE ARTICLES.

    The value of a vessel transferred to another country on a grant 
basis under section 516 of the Foreign Assistance Act of 1961 (22 
U.S.C. 2321j) pursuant to authority provided by section 1 of this Act 
shall not be counted for the purposes of section 516(g) of the Foreign 
Assistance Act of 1961 in the aggregate value of excess defense 
articles transferred to countries under that section in any fiscal 
year.

SEC. 3. COSTS OF TRANSFERS.

    Any expense incurred by the United States in connection with a 
transfer of a vessel authorized by section 1 of this Act shall be 
charged to the recipient.

SEC. 4. EXPIRATION OF AUTHORITY.

    The authority to transfer vessels under section 1 of this Act shall 
expire at the end of the 2-year period beginning on the date of the 
enactment of this Act.

SEC. 5. REPAIR AND REFURBISHMENT OF VESSELS IN UNITED STATES SHIPYARDS.

    The Secretary of the Navy shall require, to the maximum extent 
possible, as a condition of a transfer of a vessel under this Act, that 
the country to which the vessel is transferred have such repair or 
refurbishment of the vessel as is needed, before the vessel joins the 
naval forces of that country, performed at a shipyard located in the 
United States, including a United States Navy shipyard.

SEC. 6. SENSE OF CONGRESS RELATING TO TRANSFER OF NAVAL VESSELS AND 
              AIRCRAFT TO THE GOVERNMENT OF THE PHILIPPINES.

    (a) Sense of Congress.--It is the sense of the Congress that--
            (1) the President should transfer to the Government of the 
        Philippines, on a grant basis under section 516 of the Foreign 
        Assistance Act of 1961 (22 U.S.C. 2321j), the excess defense 
        articles described in subsection (b); and
            (2) the United States should not oppose the transfer of F-5 
        aircraft by a third country to the Government of the 
        Philippines.
    (b) Excess Defense Articles.--The excess defense articles described 
in this subsection are the following:
            (1) UH-1 helicopters, A-4 aircraft, and the ``POINT'' class 
        Coast Guard cutter POINT EVANS.
            (2) Amphibious landing craft, naval patrol vessels 
        (including patrol vessels of the Coast Guard), and other naval 
        vessels (such as frigates), if such vessels are available.

Summary: Authorizes the Secretary of the Navy to transfer certain naval vessels to: (1) Brazil, (2) the Dominican Republic, (3) Ecuador, (4) Egypt, (5) Greece, (6) Mexico, (7) Poland, (8) Taiwan, (9) Thailand. And (10) Turkey. Declares that the value of such transferred vessels shall not be counted for the limitation on the aggregate value of excess defense articles that can be transferred to such a country in any fiscal year. Directs the Secretary, to the maximum extent possible, to require recipient countries, as a condition of transfer, to have such vessels repaired or refurbished at US shipyards, including a US Navy shipyard. Expresses the sense of Congress that: (1) the President should transfer on a grant basis certain excess aircraft and naval vessels to the Government of the Philippines. And (2) the United States should not oppose the transfer of F-5 aircraft by a third country to such Government.