I

106TH CONGRESS

1ST SESSION H. R. 973

To modify authorities with respect to the provision of security assistance

under the Foreign Assistance Act of 1961 and the Arms Export Control

Act, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MARCH 4, 1999

Mr. GILMAN (for himself and Mr. GEJDENSON) introduced the following bill;

which was referred to the Committee on International Relations

A BILL

To modify authorities with respect to the provision of security assistance under the Foreign Assistance Act of 1961

and the Arms Export Control Act, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Security Assistance

5 Act of 1999’’.

6 SEC. 2. TABLE OF CONTENTS.

7 The table of contents of this Act is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.
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TITLE I—TRANSFERS OF EXCESS DEFENSE ARTICLES

Sec. 101. Excess defense articles for central European countries.

Sec. 102. Excess defense articles for certain independent States of the former

Soviet Union.

TITLE II—FOREIGN MILITARY SALES AUTHORITIES

Sec. 201. Termination of foreign military financed training.

Sec. 202. Sales of excess Coast Guard property.

Sec. 203. Competitive pricing for sales of defense articles.

Sec. 204. Reporting of offset agreements.

Sec. 205. Notification of upgrades to direct commercial sales.

Sec. 206. Expanded prohibition on incentive payments.

Sec. 207. Administrative fees for leasing of defense articles.

TITLE III—STOCKPILING OF DEFENSE ARTICLES FOR FOREIGN

COUNTRIES

Sec. 301. Additions to United States war reserve stockpiles for allies.

Sec. 302. Transfer of certain obsolete or surplus defense articles in the war reserves stockpile for allies.

TITLE IV—INTERNATIONAL ARMS SALES CODE OF CONDUCT ACT

OF 1999

Sec. 401. Short title.

Sec. 402. Findings.

Sec. 403. International arms sales code of conduct.

TITLE V—AUTHORITY TO EXEMPT INDIA AND PAKISTAN FROM

CERTAIN SANCTIONS

Sec. 501. Waiver authority.

Sec. 502. Consultation.

Sec. 503. Reporting requirement.

Sec. 504. Appropriate congressional committees defined.

TITLE VI—MISCELLANEOUS PROVISIONS

Sec. 601. Annual military assistance reports.

Sec. 602. Publication of arms sales certifications.

Sec. 603. Notification requirements for commercial export of significant military equipment on United States Munitions List.

Sec. 604. Enforcement of Arms Export Control Act.

Sec. 605. Violations relating to material support to terrorists.

Sec. 606. Authority to consent to third party transfer of ex-U.S.S. Bowman

County to USS LST Ship Memorial, Inc.

Sec. 607. Exceptions relating to prohibitions on assistance to countries involved

in transfer or use of nuclear explosive devices.

Sec. 608. Penalties for violations of Export Administration Act of 1979.
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1 TITLE I—TRANSFERS OF EXCESS

2 DEFENSE ARTICLES

3 SEC. 101. EXCESS DEFENSE ARTICLES FOR CENTRAL EURO4 PEAN COUNTRIES.

5 Section 105 of Public Law 104–164 (110 Stat. 1427)

6 is amended by striking ‘‘1996 and 1997’’ and inserting

7 ‘‘2000 and 2001’’.

8 SEC. 102. EXCESS DEFENSE ARTICLES FOR CERTAIN INDE9 PENDENT STATES OF THE FORMER SOVIET

10 UNION.

11 (a) USES FOR WHICH FUNDS ARE AVAILABLE.—

12 Notwithstanding section 516(e) of the Foreign Assistance

13 Act of 1961 (22 U.S.C. 2321j(e)), during each of the fiscal

14 years 2000 and 2001, funds available to the Department

15 of Defense may be expended for crating, packing, han16 dling, and transportation of excess defense articles trans17 ferred under the authority of section 516 of that Act to

18 Georgia, Kazakhstan, Kyrgyzstan, Moldova,

19 Turkmenistan, Ukraine, and Uzbekistan.

20 (b) CONTENT OF CONGRESSIONAL NOTIFICATION.—

21 Each notification required to be submitted under section

22 516(f) of the Foreign Assistance Act of 1961 (22 U.S.C.

23 2321j(f)) with respect to a proposed transfer of a defense

24 article described in subsection (a) shall include an esti-
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1 mate of the amount of funds to be expended under sub2 section (a) with respect to that transfer.

3 TITLE II—FOREIGN MILITARY

4 SALES AUTHORITIES

5 SEC. 201. TERMINATION OF FOREIGN MILITARY FINANCED

6 TRAINING.

7 Section 617 of the Foreign Assistance Act of 1961

8 (22 U.S.C. 2367) is amended—

9 (1) by inserting in the second sentence ‘‘and the

10 Arms Export Control Act’’ after ‘‘under this Act’’

11 the first place it appears;

12 (2) by striking ‘‘under this Act’’ the second

13 place it appears; and

14 (3) by inserting in the third sentence ‘‘and

15 under the Arms Export Control Act’’ after ‘‘this

16 Act’’.

17 SEC. 202. SALES OF EXCESS COAST GUARD PROPERTY.

18 Section 21(a)(1) of the Arms Export Control Act (22

19 U.S.C. 2761(a)(1)) is amended in the text above subpara20 graph (A) by inserting ‘‘and the Coast Guard’’ after ‘‘De21 partment of Defense’’.

22 SEC. 203. COMPETITIVE PRICING FOR SALES OF DEFENSE

23 ARTICLES.

24 Section 22(d) of the Arms Export Control Act (22

25 U.S.C. 2762(d)) is amended—
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1 (1) by striking ‘‘Procurement contracts’’ and

2 inserting ‘‘(1) Procurement contracts’’; and

3 (2) by adding at the end the following:

4 ‘‘(2) Direct costs associated with meeting additional

5 or unique requirements of the purchaser shall be allowable

6 under contracts described in paragraph (1). Loadings ap7 plicable to such direct costs shall be permitted at the same

8 rates applicable to procurement of like items purchased

9 by the Department of Defense for its own use.’’.

10 SEC. 204. REPORTING OF OFFSET AGREEMENTS.

11 (a) GOVERNMENT-TO-GOVERNMENT SALES.—Sec12 tion 36(b)(1) of the Arms Export Control Act (22 U.S.C.

13 2776(b)(1)) is amended in the fourth sentence by striking

14 ‘‘(if known on the date of transmittal of such certifi15 cation)’’ and inserting ‘‘and, if known on the date of trans16 mittal of such certification, a description of the offset

17 agreement. Such description may be included in the classi18 fied portion of such numbered certification’’.

19 (b) COMMERCIAL SALES.—Section 36(c)(1) of the

20 Arms Export Control Act (22 U.S.C. 2776(c)(1)) is

21 amended in the second sentence by striking ‘‘(if known

22 on the date of transmittal of such certification)’’ and in23 serting ‘‘and, if known on the date of transmittal of such

24 certification, a description of the offset agreement. Such
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1 description may be included in the classified portion of

2 such numbered certification’’.

3 SEC. 205. NOTIFICATION OF UPGRADES TO DIRECT COM4 MERCIAL SALES.

5 Section 36(c) of the Arms Export Control Act (22

6 U.S.C. 2776(c)) is amended by adding at the end the fol7 lowing new paragraph:

8 ‘‘(4) The provisions of subsection (b)(5) shall apply

9 to any equipment, article, or service for which a numbered

10 certification has been transmitted to Congress pursuant

11 to paragraph (1) in the same manner and to the same

12 extent as that subsection applies to any equipment, article,

13 or service for which a numbered certification has been

14 transmitted to Congress pursuant to subsection (b)(1).

15 For purposes of such application, any reference in sub16 section (b)(5) to ‘a letter of offer’ or ‘an offer’ shall be

17 deemed to be a reference to ‘a contract’.’’.

18 SEC. 206. EXPANDED PROHIBITION ON INCENTIVE PAY19 MENTS.

20 (a) IN GENERAL.—Section 39A(a) of the Arms Ex21 port Control Act (22 U.S.C. 2779a(a)) is amended—

22 (1) by inserting ‘‘or licensed’’ after ‘‘sold’’; and

23 (2) by inserting ‘‘or export’’ after ‘‘sale’’.

24 (b) DEFINITION OF UNITED STATES PERSON.—Sec25 tion 39A(d)(3)(B)(ii) of the Arms Export Control Act (22
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1 U.S.C. 2779a(d)(3)(B)(ii)) is amended by inserting ‘‘or by

2 an entity described in clause (i)’’ after ‘‘subparagraph

3 (A)’’.

4 SEC. 207. ADMINISTRATIVE FEES FOR LEASING OF DE5 FENSE ARTICLES.

6 Section 61(a) of the Arms Export Control Act (22

7 U.S.C. 2796(a)) is amended in paragraph (4) of the first

8 sentence by inserting after ‘‘including reimbursement for

9 depreciation of such articles while leased,’’ the following:

10 ‘‘a fee for the administrative services associated with proc11 essing such leasing,’’.

12 TITLE III—STOCKPILING OF DE13 FENSE ARTICLES FOR FOR14 EIGN COUNTRIES

15 SEC. 301. ADDITIONS TO UNITED STATES WAR RESERVE

16 STOCKPILES FOR ALLIES.

17 Paragraph (2) of section 514(b) of the Foreign As18 sistance Act of 1961 (22 U.S.C. 2321h(b)(2)) is amended

19 to read as follows:

20 ‘‘(2)(A) The value of such additions to stock21 piles of defense articles in foreign countries shall not

22 exceed $340,000,000 for fiscal year 1999 and

23 $60,000,000 for fiscal year 2000.

24 ‘‘(B)(i) Of the amount specified in subpara25 graph (A) for fiscal year 1999, not more than
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1 $320,000,000 may be made available for stockpiles

2 in the Republic of Korea and not more than

3 $20,000,000 may be made available for stockpiles in

4 Thailand.

5 ‘‘(ii) Of the amount specified in subparagraph

6 (A) for fiscal year 2000, not more than $40,000,000

7 may be made available for stockpiles in the Republic

8 of Korea and not more than $20,000,000 may be

9 made available for stockpiles in Thailand.’’.

10 SEC. 302. TRANSFER OF CERTAIN OBSOLETE OR SURPLUS

11 DEFENSE ARTICLES IN THE WAR RESERVES

12 STOCKPILE FOR ALLIES.

13 (a) ITEMS IN THE KOREAN STOCKPILE.—

14 (1) IN GENERAL.—Notwithstanding section 514

15 of the Foreign Assistance Act of 1961 (22 U.S.C.

16 2321h), the President is authorized to transfer to

17 the Republic of Korea, in return for concessions to

18 be negotiated by the Secretary of Defense, with the

19 concurrence of the Secretary of State, any or all of

20 the items described in paragraph (2).

21 (2) COVERED ITEMS.—The items referred to in

22 paragraph (1) are munitions, equipment, and mate23 rial such as tanks, trucks, artillery, mortars, general

24 purpose bombs, repair parts, ammunition, barrier
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1 material, and ancillary equipment, if such items

2 are—

3 (A) obsolete or surplus items;

4 (B) in the inventory of the Department of

5 Defense;

6 (C) intended for use as reserve stocks for

7 the Republic of Korea; and

8 (D) as of the date of enactment of this

9 Act, located in a stockpile in the Republic of

10 Korea.

11 (b) ITEMS IN THE THAILAND STOCKPILE.—

12 (1) IN GENERAL.—Notwithstanding section 514

13 of the Foreign Assistance Act of 1961 (22 U.S.C.

14 2321h), the President is authorized to transfer to

15 Thailand, in return for concessions to be negotiated

16 by the Secretary of Defense, with the concurrence of

17 the Secretary of State, any or all of the items in the

18 WRS–T stockpile described in paragraph (2).

19 (2) COVERED ITEMS.—The items referred to in

20 paragraph (1) are munitions, equipment, and mate21 rial such as tanks, trucks, artillery, mortars, general

22 purpose bombs, repair parts, ammunition, barrier

23 material, and ancillary equipment, if such items

24 are—

25 (A) obsolete or surplus items;
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1 (B) in the inventory of the Department of

2 Defense;

3 (C) intended for use as reserve stocks for

4 Thailand; and

5 (D) as of the date of enactment of this

6 Act, located in a stockpile in Thailand.

7 (c) VALUATION OF CONCESSIONS.—The value of con8 cessions negotiated pursuant to subsections (a) and (b)

9 shall be at least equal to the fair market value of the items

10 transferred. The concessions may include cash compensa11 tion, services, waiver of charges otherwise payable by the

12 United States, and other items of value.

13 (d) PRIOR NOTIFICATIONS OF PROPOSED TRANS14 FERS.—Not less 30 days before making a transfer under

15 the authority of this section, the President shall transmit

16 to the chairmen of the Committee on Foreign Relations

17 of the Senate and the Committee on International Rela18 tions of the House of Representatives a detailed notifica19 tion of the proposed transfer, which shall include an iden20 tification of the items to be transferred and the conces21 sions to be received.

22 (e) TERMINATION OF AUTHORITY.—No transfer may

23 be made under the authority of this section more than five

24 years after the date of enactment of this Act.
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1 TITLE IV—INTERNATIONAL

2 ARMS SALES CODE OF CON3 DUCT ACT OF 1999

4 SEC. 401. SHORT TITLE.

5 This title may be cited as the ‘‘International Arms

6 Sales Code of Conduct Act of 1999’’.

7 SEC. 402. FINDINGS.

8 The Congress finds the following:

9 (1) The proliferation of conventional arms and

10 conflicts around the globe are multilateral problems.

11 The only way to effectively prevent rogue nations

12 from acquiring conventional weapons is through a

13 multinational ‘‘arms sales code of conduct’’.

14 (2) Approximately 40,000,000 people, over 75

15 percent of whom were civilians, died as a result of

16 civil and international wars fought with conventional

17 weapons during the 45 years of the cold war, dem18 onstrating that conventional weapons can in fact be

19 weapons of mass destruction.

20 (3) Conflict has actually increased in the post

21 cold war era.

22 (4) It is in the national security and economic

23 interests of the United States to reduce dramatically

24 the $840,000,000,000 that all countries spend on

25 armed forces every year, $191,000,000,000 of which
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1 is spent by developing countries, an amount equiva2 lent to 4 times the total bilateral and multilateral

3 foreign assistance such countries receive every year.

4 (5) The Congress has the constitutional respon5 sibility to participate with the executive branch in

6 decisions to provide military assistance and arms

7 transfers to a foreign government, and in the formu8 lation of a policy designed to reduce dramatically the

9 level of international militarization.

10 (6) A decision to provide military assistance

11 and arms transfers to a government that is undemo12 cratic, does not adequately protect human rights, or

13 is currently engaged in acts of armed aggression

14 should require a higher level of scrutiny than does

15 a decision to provide such assistance and arms

16 transfers to a government to which these conditions

17 do not apply.

18 SEC. 403. INTERNATIONAL ARMS SALES CODE OF CON19 DUCT.

20 (a) NEGOTIATIONS.—The President shall attempt to

21 achieve the foreign policy goal of an international arms

22 sales code of conduct with all Wassenaar Arrangement

23 countries. The President shall take the necessary steps to

24 begin negotiations with all Wassenaar Arrangement coun25 tries within 120 days after the date of the enactment of
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1 this Act. The purpose of these negotiations shall be to con2 clude an agreement on restricting or prohibiting arms

3 transfers to countries that do not meet the following cri4 teria:

5 (1) PROMOTES DEMOCRACY.—The government

6 of the country—

7 (A) was chosen by and permits free and

8 fair elections;

9 (B) promotes civilian control of the mili10 tary and security forces and has civilian institu11 tions controlling the policy, operation, and

12 spending of all law enforcement and security in13 stitutions, as well as the armed forces;

14 (C) promotes the rule of law, equality be15 fore the law, and respect for individual and mi16 nority rights, including freedom to speak, pub17 lish, associate, and organize; and

18 (D) promotes the strengthening of politi19 cal, legislative, and civil institutions of democ20 racy, as well as autonomous institutions to

21 monitor the conduct of public officials and to

22 combat corruption.

23 (2) RESPECTS HUMAN RIGHTS.—The govern24 ment of the country—
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1 (A) does not engage in gross violations of

2 internationally recognized human rights,

3 including—

4 (i) extra judicial or arbitrary execu5 tions;

6 (ii) disappearances;

7 (iii) torture or severe mistreatment;

8 (iv) prolonged arbitrary imprisonment;

9 (v) systematic official discrimination

10 on the basis of race, ethnicity, religion,

11 gender, national origin, or political affili12 ation; and

13 (vi) grave breaches of international

14 laws of war or equivalent violations of the

15 laws of war in internal conflicts;

16 (B) vigorously investigates, disciplines, and

17 prosecutes those responsible for gross violations

18 of internationally recognized human rights;

19 (C) permits access on a regular basis to

20 political prisoners by international humani21 tarian organizations such as the International

22 Committee of the Red Cross;

23 (D) promotes the independence of the judi24 ciary and other official bodies that oversee the

25 protection of human rights;
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1 (E) does not impede the free functioning of

2 domestic and international human rights orga3 nizations; and

4 (F) provides access on a regular basis to

5 humanitarian organizations in situations of con6 flict or famine.

7 (3) NOT ENGAGED IN CERTAIN ACTS OF ARMED

8 AGGRESSION.—The government of the country is not

9 currently engaged in acts of armed aggression in

10 violation of international law.

11 (4) FULL PARTICIPATION IN U.N. REGISTER OF

12 CONVENTIONAL ARMS.—The government of the

13 country is fully participating in the United Nations

14 Register of Conventional Arms.

15 (b) REPORTS TO CONGRESS.—(1) In the report re16 quired in sections 116(d) and 502B of the Foreign Assist17 ance Act of 1961, the Secretary of State shall describe

18 the extent to which the practices of each country evaluated

19 meet the criteria in paragraphs (1) through (4) of sub20 section (a).

21 (2) Not later than 6 months after the commencement

22 of the negotiations under subsection (a), and not later

23 than the end of every 6-month period thereafter until an

24 agreement described in subsection (a) is concluded, the
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1 President shall report to the appropriate committees of the

2 Congress on the progress made during these negotiations.

3 (c) DEFINITION.—The term ‘‘Wassenaar Arrange4 ment countries’’ means Argentina, Australia, Austria, Bel5 gium, Bulgaria, Canada, the Czech Republic, Denmark,

6 Finland, France, Germany, Greece, Hungary, Ireland,

7 Italy, Japan, Luxembourg, Netherlands, New Zealand,

8 Norway, Poland, Portugal, the Republic of Korea, Roma9 nia, Russia, Slovakia, Spain, Sweden, Switzerland, Tur10 key, Ukraine, and the United Kingdom.

11 TITLE V—AUTHORITY TO EX12 EMPT INDIA AND PAKISTAN

13 FROM CERTAIN SANCTIONS

14 SEC. 501. WAIVER AUTHORITY.

15 (a) AUTHORITY.—

16 (1) IN GENERAL.—Except as provided in sub17 section (b), the President may waive, with respect to

18 India or Pakistan, the application of any sanction or

19 prohibition (or portion thereof) contained in section

20 101 or 102 of the Arms Export Control Act (22

21 U.S.C. 2799aa or 2799aa–1), section 620E(e) of the

22 Foreign Assistance Act of 1961 (22 U.S.C.

23 2375(e)), or section 2(b)(4) of the Export Import

24 Bank Act of 1945 (12 U.S.C. 635(b)(4)).
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1 (2) EFFECTIVE DATE.—A waiver of the applica2 tion of a sanction or prohibition (or portion thereof)

3 under paragraph (1) shall be effective only for a pe4 riod ending on or before September 30, 2000.

5 (b) EXCEPTION.—The authority to waive the applica6 tion of a sanction or prohibition (or portion thereof) under

7 subsection (a) shall not apply with respect to a sanction

8 or prohibition contained in subparagraph (B), (C), or (G)

9 of section 102(b)(2) of the Arms Export Control Act.

10 (c) NOTIFICATION.—A waiver of the application of a

11 sanction or prohibition (or portion thereof) contained in

12 section 541 of the Foreign Assistance Act of 1961 shall

13 not become effective until 15 days after notice of such

14 waiver has been reported to the congressional committees

15 specified in section 634A(a) of such Act in accordance

16 with the procedures applicable to reprogramming notifica17 tions under that section.

18 SEC. 502. CONSULTATION.

19 Prior to each exercise of the authority provided in

20 section 601, the President shall consult with the appro21 priate congressional committees.

22 SEC. 503. REPORTING REQUIREMENT.

23 Not later than August 31, 2000, the Secretary of

24 State shall prepare and submit to the appropriate congres-
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1 sional committees a report on economic and national secu2 rity developments in India and Pakistan.

3 SEC. 504. APPROPRIATE CONGRESSIONAL COMMITTEES

4 DEFINED.

5 In this title, the term ‘‘appropriate congressional

6 committees’’ means—

7 (1) the Committee on International Relations

8 and the Committee on Appropriations of the House

9 of Representatives; and

10 (2) the Committee on Foreign Relations and

11 the Committee on Appropriations of the Senate.

12 TITLE VI—MISCELLANEOUS

13 PROVISIONS

14 SEC. 601. ANNUAL MILITARY ASSISTANCE REPORTS.

15 Section 655(b) of the Foreign Assistance Act of 1961

16 (22 U.S.C. 2415(b)) is amended to read as follows:

17 ‘‘(b) INFORMATION RELATING TO MILITARY ASSIST18 ANCE AND MILITARY EXPORTS.—Each such report shall

19 show the aggregate dollar value and quantity of defense

20 articles (including excess defense articles), defense serv21 ices, and international military education and training ac22 tivities authorized by the United States and of such arti23 cles, services, and activities provided by the United States,

24 excluding any activity that is reportable under title V of

25 the National Security Act of 1947, to each foreign country
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1 and international organization. The report shall specify,

2 by category, whether such defense articles—

3 ‘‘(1) were furnished by grant under chapter 2

4 or chapter 5 of part II of this Act or under any

5 other authority of law or by sale under chapter 2 of

6 the Arms Export Control Act;

7 ‘‘(2) were furnished with the financial assist8 ance of the United States Government, including

9 through loans and guarantees; or

10 ‘‘(3) were licensed for export under section 38

11 of the Arms Export Control Act.’’.

12 SEC. 602. PUBLICATION OF ARMS SALES CERTIFICATIONS.

13 Section 36 of the Arms Export Control Act (22

14 U.S.C. 2776) is amended in the second subsection (e) (as

15 added by section 155 of Public Law 104–164)—

16 (1) by inserting ‘‘in a timely manner’’ after ‘‘to

17 be published’’; and

18 (2) by striking ‘‘the full unclassified text of’’

19 and all that follows and inserting the following: ‘‘the

20 full unclassified text of—

21 ‘‘(1) each numbered certification submitted pur22 suant to subsection (b);

23 ‘‘(2) each notification of a proposed commercial

24 sale submitted under subsection (c); and
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1 ‘‘(3) each notification of a proposed commercial

2 technical assistance or manufacturing licensing

3 agreement submitted under subsection (d).’’.

4 SEC. 603. NOTIFICATION REQUIREMENTS FOR COMMER5 CIAL EXPORT OF SIGNIFICANT MILITARY

6 EQUIPMENT ON UNITED STATES MUNITIONS

7 LIST.

8 (a) NOTIFICATION REQUIREMENT.—Section 38 of

9 the Arms Export Control Act (22 U.S.C. 2778) is amend10 ed by adding at the end the following:

11 ‘‘(i) As prescribed in regulations issued under this

12 section, a United States person to whom a license has been

13 granted to export an item identified as significant military

14 equipment on the United States Munitions List shall, not

15 later than 15 days after the item is exported, submit to

16 the Department of State a report containing all shipment

17 information, including a description of the item and the

18 quantity, value, port of exit, and destination of the item.’’.

19 (b) QUARTERLY REPORTS TO CONGRESS.—Section

20 36(a) of the Arms Export Control Act (22 U.S.C.

21 2776(a)) is amended—

22 (1) in paragraph (11), by striking ‘‘and’’ at the

23 end;
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1 (2) in paragraph (12), by striking ‘‘third-party

2 transfers.’’ and inserting ‘‘third-party transfers;

3 and’’; and

4 (3) by adding after paragraph (12) (but before

5 the last sentence of the subsection), the following:

6 ‘‘(13) a report on all exports of significant mili7 tary equipment for which information has been pro8 vided pursuant to section 38(i).’’.

9 SEC. 604. ENFORCEMENT OF ARMS EXPORT CONTROL ACT.

10 The Arms Export Control Act (22 U.S.C. 2751 et

11 seq.) is amended in sections 38(e), 39A(c), and 40(k) by

12 inserting after ‘‘except that’’ each place it appears the fol13 lowing: ‘‘section 11(c)(2)(B) of such Act shall not apply,

14 and instead, as prescribed in regulations issued under this

15 section, the Secretary of State may assess civil penalties

16 for violations of this Act and regulations prescribed there17 under and further may commence a civil action to recover

18 such civil penalties, and except further that’’.

19 SEC. 605. VIOLATIONS RELATING TO MATERIAL SUPPORT

20 TO TERRORISTS.

21 Section 38(g)(1)(A)(iii) of the Arms Export Control

22 Act (22 U.S.C. 2778(g)(1)(A)(iii)) is amended by adding

23 at the end before the comma the following: ‘‘or section

24 2339A of such title (relating to providing material support

25 to terrorists)’’.
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1 SEC. 606. AUTHORITY TO CONSENT TO THIRD PARTY

2 TRANSFER OF EX-U.S.S. BOWMAN COUNTY TO

3 USS LST SHIP MEMORIAL, INC.

4 (a) FINDINGS.—Congress makes the following find5 ings:

6 (1) It is the long-standing policy of the United

7 States Government to deny requests for the retrans8 fer of significant military equipment that originated

9 in the United States to private entities.

10 (2) In very exceptional circumstances, when the

11 United States public interest would be served by the

12 proposed retransfer and end-use, such requests may

13 be favorably considered.

14 (3) Such retransfers to private entities have

15 been authorized in very exceptional circumstances

16 following appropriate demilitarization and receipt of

17 assurances from the private entity that the item to

18 be transferred would be used solely in furtherance of

19 Federal Government contracts or for static museum

20 display.

21 (4) Nothing in this section should be construed

22 as a revision of long-standing policy referred to in

23 paragraph (1).

24 (5) The Government of Greece has requested

25 the consent of the United States Government to the
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1 retransfer of HS Rodos (ex-U.S.S. Bowman County

2 (LST 391)) to the USS LST Ship Memorial, Inc.

3 (b) AUTHORITY TO CONSENT TO RETRANSFER.—

4 (1) IN GENERAL.—Subject to paragraph (2),

5 the President may consent to the retransfer by the

6 Government of Greece of HS Rodos (ex-U.S.S. Bow7 man County (LST 391)) to the USS LST Ship Me8 morial, Inc.

9 (2) CONDITIONS FOR CONSENT.—The President

10 should not exercise the authority under paragraph

11 (1) unless USS LST Memorial, Inc.—

12 (A) utilizes the vessel for public, nonprofit,

13 museum-related purposes;

14 (B) submits a certification with the import

15 application that no firearms frames or receivers,

16 ammunition, or other firearms as defined in

17 section 5845 of the National Firearms Act (26

18 U.S.C. 5845) will be imported with the vessel;

19 and

20 (C) complies with regulatory policy re21 quirements related to the facilitation of mon22 itoring by the Federal Government of, and the

23 mitigation of potential environmental hazards

24 associated with, aging vessels, and has a dem25 onstrated financial capability to so comply.
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1 SEC. 607. EXCEPTIONS RELATING TO PROHIBITIONS ON AS2 SISTANCE TO COUNTRIES INVOLVED IN

3 TRANSFER OR USE OF NUCLEAR EXPLOSIVE

4 DEVICES.

5 (a) IN GENERAL.—Section 2 of the Agriculture Ex6 port Relief Act of 1998 (Public Law 105–194; 112 Stat.

7 627) is amended—

8 (1) by striking subsection (d); and

9 (2) by striking the second sentence of sub10 section (e).

11 (b) EFFECTIVE DATE.—The amendments made by

12 subsection (a) shall take effect on the date of the enact13 ment of this Act or September 30, 1999, whichever occurs

14 earlier.

15 SEC. 608. PENALTIES FOR VIOLATIONS OF EXPORT ADMIN16 ISTRATION ACT OF 1979.

17 (a) INCREASED PENALTIES.—Section 11 of the Ex18 port Administration Act of 1979 (50 U.S.C. App. 2410)

19 is amended—

20 (1) by amending subsection (a) to read as fol21 lows:

22 ‘‘(a) IN GENERAL.—Except as provided in subsection

23 (b), whoever knowingly violates or conspires to or attempts

24 to violate any provision of this Act or any license, order,

25 or regulation issued under this Act—
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1 ‘‘(A) except in the case of an individual, shall

2 be fined not more than $500,000 or 5 times the

3 value of any exports involved, whichever is greater;

4 and

5 ‘‘(B) in the case of an individual, shall be fined

6 not more than $250,000 or 5 times the value of any

7 exports involved, whichever is greater, or imprisoned

8 not more than 5 years, or both.’’;

9 (2) in subsection (b)—

10 (A) in paragraphs (1)(A) and (2)(A) by

11 striking ‘‘five times’’ and inserting ‘‘10 times’’;

12 (B) in paragraph (1)(B) by striking

13 ‘‘$250,000’’ and inserting ‘‘$500,000’’; and

14 (C) in paragraph (2)(B) by striking

15 ‘‘$250,000, or imprisoned not more than 5

16 years’’ and inserting ‘‘$500,000, or imprisoned

17 not more than 10 years’’;

18 (3) in subsection (c)(1)—

19 (A) by striking ‘‘$10,000’’ and inserting

20 ‘‘$250,000’’; and

21 (B) by striking ‘‘except that the civil pen22 alty’’ and all that follows through the end of

23 the paragraph and inserting ‘‘except that the

24 civil penalty for a violation of the regulations
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1 issued pursuant to section 8 may not exceed

2 $50,000.’’; and

3 (4) in subsection (h)(1), by inserting after

4 ‘‘Arms Export Control Act (22 U.S.C. 2778)’’ the

5 following: ‘‘section 16 of the Trading With the

6 Enemy Act (50 U.S.C. 16), or, to the extent the vio7 lation involves the export of goods or technology con8 trolled under this or any other Act or defense arti9 cles or defense services controlled under the Arms

10 Export Control Act, section 371 or 1001 of title 18,

11 United States Code,’’.

12 (b) EFFECTIVENESS OF ACT.—(1) The authority of

13 the Export Administration Act of 1979 shall be in effect

14 during the period beginning on the date of the enactment

15 of this Act and ending on September 30, 2001.

16 (2) The Export Administration Act of 1979 is

17 amended by striking section 20 (50 U.S.C. 2419).

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