Calendar No. 467

104TH CONGRESS

2D SESSION H. R. 3121

AN ACT

To amend the Foreign Assistance Act of 1961 and

tries, and for other purposes.transfer of naval vessels to certain foreign counprovisions under those Acts, to authorize thements to certain defense and security assistancethe Arms Export Control Act to make improveJUNE 26, 1996

Reported with amendments
II

Calendar No. 467

104TH CONGRESS

2D SESSION H. R. 3121

IN THE SENATE OF THE UNITED STATES

APRIL 17, 1996

Received; read twice and referred to the Committee on Foreign Relations

JUNE 26, 1996

Reported by Mr. HELMS, with amendments

[Omit the part struck through and insert the part printed in italic]

A BILL

To amend the Foreign Assistance Act of 1961 and the Arms

Export Control Act to make improvements to certain

defense and security assistance provisions under those

Acts, to authorize the transfer of naval vessels to certain

foreign countries, 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. TABLE OF CONTENTS.

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

Sec. 1. Table of contents.

TITLE I—DEFENSE AND SECURITY ASSISTANCE

CHAPTER 1—MILITARY And AND RELATED ASSISTANCE
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Sec. 101. Terms of loans under the Foreign Military Financing program.

Sec. 102. Additional requirements under the Foreign Military Financing program.

Sec. 103. Drawdown special authorities.

Sec. 104. Transfer of excess defense articles.

Sec. 105. Excess defense articles for certain European countries.

CHAPTER 2—INTERNATIONAL MILITARY EDUCATION AND TRAINING

Sec. 111. Assistance for Indonesia.

Sec. 112. Additional requirements.

CHAPTER 3—ANTITERRORISM ASSISTANCE

Sec. 121. Antiterrorism training assistance.

Sec. 122. Research and development expenses.

CHAPTER 4—INTERNATIONAL NARCOTICS CONTROL ASSISTANCE

Sec. 131. Additional requirements.

Sec. 132. Notification requirement.

Sec. 133. Waiver of restrictions for narcotics-related economic assistance.

CHAPTER 5—OTHER PROVISIONS

Sec. 141. Standardization of congressional review procedures for arms transfers.

Sec. 142. Standardization of third country transfers of defense articles.

Sec. 143. Increased standardization, rationalization, and interoperability of assistance and sales programs.

Sec. 144. Definition of significant military equipment.

Sec. 145. Elimination of annual reporting requirement relating to the Special

Defense Acquisition Fund.

Sec. 146. Cost of leased defense articles that have been lost or destroyed.

Sec. 147. Designation of major non-NATO allies.

Sec. 148. Certification thresholds.

Sec. 148. Annual military assistance report.

Sec. 149. Depleted uranium ammunition.

Sec. 150. End-use monitoring of defense articles and defense services.

Sec. 151. Brokering activities relating to commercial sales of defense articles

and services.

Sec. 152. Return and exchanges of defense articles previously transferred pursuant to the arms export control act Arms Export Control Act.

Sec. 153. National security interest determination to waive reimbursement of

depreciation for leased defense articles.

Sec. 154. Eligibility of Panama under the Arms Export Control Act.

Sec. 155. Publication of arms sales certifications.

Sec. 156. Release of information.

Sec. 157. Repeal of termination of provisions of the Nuclear Proliferation Prevention Act of 1994; Presidential determinations.

TITLE II—TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN

COUNTRIES

Sec. 201. Authority to transfer naval vessels.

Sec. 202. Costs of transfers.
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Sec. 203. Expiration of authority.

Sec. 204. Repair and refurbishment of vessels in United States shipyards.

1 TITLE I—DEFENSE AND

2 SECURITY ASSISTANCE

3 CHAPTER 1—MILITARY AND RELATED

4 ASSISTANCE

5 SEC. 101. TERMS OF LOANS UNDER THE FOREIGN MILI6 TARY FINANCING PROGRAM.

7 Section 31(c) of the Arms Export Control Act (22

8 U.S.C. 2771(c)) is amended to read as follows:

9 ‘‘(c) Loans available under section 23 shall be pro10 vided at rates of interest that are not less than the current

11 average market yield on outstanding marketable obliga12 tions of the United States of comparable maturities.’’.

13 SEC. 102. ADDITIONAL REQUIREMENTS UNDER THE FOR14 EIGN MILITARY FINANCING PROGRAM.

15 (a) AUDIT OF CERTAIN PRIVATE FIRMS.—Section 23

16 of the Arms Export Control Act (22 U.S.C. 2763) is

17 amended by adding at the end the following new sub18 section:

19 ‘‘(f) For each fiscal year, the Secretary of Defense,

20 as requested by the Director of the Defense Security As21 sistance Agency, shall conduct audits on a nonreimburs22 able basis of private firms that have entered into contracts

23 with foreign governments under which defense articles, de24 fense services, or design and construction services are to
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1 be procured by such firms for such governments from fi2 nancing under this section.’’.

3 (b) NOTIFICATION REQUIREMENT WITH RESPECT

4 TO CASH FLOW FINANCING.—Section 23 of such Act (22

5 U.S.C. 2763), as amended by this Act, is further amended

6 by adding at the end the following new subsection:

7 ‘‘(g)(1) For each country and international organiza8 tion that has been approved for cash flow financing under

9 this section, any letter of offer and acceptance or other

10 purchase agreement, or any amendment thereto, for a pro11 curement of defense articles, defense services, or design

12 and construction services in excess of $100,000,000 that

13 is to be financed in whole or in part with funds made avail14 able under this Act or the Foreign Assistance Act of 1961

15 shall be submitted to the congressional committees speci16 fied in section 634A(a) of the Foreign Assistance Act of

17 1961 in accordance with the procedures applicable to re18 programming notifications under that section.

19 ‘‘(2) For purposes of this subsection, the term ‘cash

20 flow financing’ has the meaning given such term in the

21 second subsection (d) of section 25, as added by section

22 112(b) of Public Law 99–83.’’.

23 (c) LIMITATIONS ON USE OF FUNDS FOR DIRECT

24 COMMERCIAL CONTRACTS.—Section 23 of such Act (22
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1 U.S.C. 2763), as amended by this Act, is further amended

2 by adding at the end the following new subsection:

3 ‘‘(h) Of the amounts made available for a fiscal year

4 to carry out this section, not more than $100,000,000 for

5 such fiscal year may be made available for countries other

6 than Israel and Egypt for the purpose of financing the

7 procurement of defense articles, defense services, and de8 sign and construction services that are not sold by the

9 United States Government under this Act.’’.

10 (d) ANNUAL ESTIMATE AND JUSTIFICATION FOR

11 SALES PROGRAM.—Section 25(a) of such Act (22 U.S.C.

12 2765(a)) is amended—

13 (1) by striking the ‘‘and’’ at the end of para14 graph (11);

15 (2) by redesignating paragraph (12) as para16 graph (13); and

17 (3) by inserting after paragraph (11) the fol18 lowing new paragraph:

19 ‘‘(12)(A) a detailed accounting of all articles,

20 services, credits, guarantees, or any other form of

21 assistance furnished by the United States to each

22 country and international organization, including

23 payments to the United Nations, during the preced24 ing fiscal year for the detection and clearance of

25 landmines, including activities relating to the fur-
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1 nishing of education, training, and technical assist2 ance for the detection and clearance of landmines;

3 and

4 ‘‘(B) for each provision of law making funds

5 available or authorizing appropriations for demining

6 activities described in subparagraph (A), an analysis

7 and description of the objectives and activities un8 dertaken during the preceding fiscal year, including

9 the number of personnel involved in performing such

10 activities; and’’.

11 SEC. 103. DRAWDOWN SPECIAL AUTHORITIES.

12 (a) UNFORESEEN EMERGENCY DRAWDOWN.—Sec13 tion 506(a)(1) of the Foreign Assistance Act of 1961 (22

14 U.S.C. 2318(a)(1)) is amended by striking ‘‘$75,000,000’’

15 and inserting ‘‘$100,000,000’’.

16 (b) ADDITIONAL DRAWDOWN.—Section 506 of such

17 Act (22 U.S.C. 2318) is amended—

18 (1) in subsection (a)(2)(A), by striking ‘‘defense

19 articles from the stocks’’ and all that follows and in20 serting the following: ‘‘articles and services from the

21 inventory and resources of any agency of the United

22 States Government and military education and

23 training from the Department of Defense, the Presi24 dent may direct the drawdown of such articles, serv25 ices, and military education and training—
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1 ‘‘(i) for the purposes and under the au2 thorities of—

3 ‘‘(I) chapter 8 of part I (relating to

4 international narcotics control assistance);

5 ‘‘(II) chapter 9 of part I (relating to

6 international disaster assistance); or

7 ‘‘(III) the Migration and Refugee As8 sistance Act of 1962; or

9 ‘‘(ii) for the purpose of providing such arti10 cles, services, and military education and train11 ing to Vietnam, Cambodia, and Laos as the

12 President determines are necessary—

13 ‘‘(I) to support cooperative efforts to

14 locate and repatriate members of the Unit15 ed States Armed Forces and civilians em16 ployed directly or indirectly by the United

17 States Government who remain unac18 counted for from the Vietnam War; and

19 ‘‘(II) to ensure the safety of United

20 States Government personnel engaged in

21 such cooperative efforts and to support De22 partment of Defense-sponsored humani23 tarian projects associated with such ef24 forts.’’;
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1 (2) in subsection (a)(2)(B), by striking

2 ‘‘$75,000,000’’ and all that follows and inserting

3 ‘‘$150,000,000 in any fiscal year of such articles,

4 services, and military education and training may be

5 provided pursuant to subparagraph (A) of this para6 graph—

7 ‘‘(i) not more than $75,000,000 of which

8 may be provided from the drawdown from the

9 inventory and resources of the Department of

10 Defense;

11 ‘‘(ii) not more than $75,000,000 of which

12 may be provided pursuant to clause (i)(I) of

13 such subparagraph; and

14 ‘‘(iii) not more than $15,000,000 of which

15 may be provided to Vietnam, Cambodia, and

16 Laos pursuant to clause (ii) of such subpara17 graph.’’; and

18 (3) in subsection (b)(1), by adding at the end

19 the following: ‘‘In the case of drawdowns authorized

20 by subclauses (I) and (III) of subsection

21 (a)(2)(A)(i), notifications shall be provided to those

22 committees at least 15 days in advance of the

23 drawdowns in accordance with the procedures appli24 cable to reprogramming notifications under section

25 634A.’’.
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1 (c) NOTICE TO CONGRESS OF EXERCISE OF SPECIAL

2 AUTHORITIES.—Section 652 of such Act (22 U.S.C.

3 2411) is amended by striking ‘‘prior to the date’’ and in4 serting ‘‘before’’.

5 SEC. 104. TRANSFER OF EXCESS DEFENSE ARTICLES.

6 (a) IN GENERAL.—Section 516 of the Foreign Assist7 ance Act of 1961 (22 U.S.C. 2321j) is amended to read

8 as follows:

9 ‘‘SEC. 516. AUTHORITY TO TRANSFER EXCESS DEFENSE AR10 TICLES.

11 ‘‘(a) AUTHORIZATION.—The President is authorized

12 to transfer excess defense articles under this section to

13 countries for which receipt of such articles was justified

14 pursuant to the annual congressional presentation docu15 ments for military assistance programs, or for programs

16 under chapter 8 of part I of this Act, submitted under

17 section 634 of this Act, or for which receipt of such arti18 cles was separately justified to the Congress, for the fiscal

19 year in which the transfer is authorized.

20 ‘‘(b) LIMITATIONS ON TRANSFERS.—(1) The Presi21 dent may transfer excess defense articles under this sec22 tion only if—

23 ‘‘(1) (A) such articles are drawn from existing

24 stocks of the Department of Defense;
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1 ‘‘(2) (B) funds available to the Department of

2 Defense for the procurement of defense equipment

3 are not expended in connection with the transfer;

4 ‘‘(3) (C) the transfer of such articles will not

5 have an adverse impact on the military readiness of

6 the United States;

7 ‘‘(4) (D) with respect to a proposed transfer of

8 such articles on a grant basis, such a transfer is

9 preferable to a transfer on a sales basis, after taking

10 into account the potential proceeds from, and likeli11 hood of, such sales, and the comparative foreign pol12 icy benefits that may accrue to the United States as

13 the result of a transfer on either a grant or sales

14 basis;

15 ‘‘(5) (E) the President determines that the

16 transfer of such articles will not have an adverse im17 pact on the national technology and industrial base

18 and, particularly, will not reduce the opportunities of

19 entities in the national technology and industrial

20 base to sell new or used equipment to the countries

21 to which such articles are transferred; and

22 ‘‘(6) (F) the transfer of such articles is consist23 ent with the policy framework for the Eastern Medi24 terranean established under section 620C of this

25 Act.
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1 ‘‘(2) Accordingly, for the four-year period beginning

2 on October 1, 1996, the President shall ensure that excess

3 defense articles offered to Greece and Turkey under this sec4 tion will be made available consistent with the manner in

5 which the President made available such excess defense arti6 cles during the four-period that began on October 1, 1992,

7 pursuant to section 573(e) of the Foreign Operations, Ex8 port Financing, and Related Programs Appropriations Act,

9 1990.

10 ‘‘(c) TERMS OF TRANSFERS.—

11 ‘‘(1) NO COST TO RECIPIENT COUNTRY.—Ex12 cess defense articles may be transferred under this

13 section without cost to the recipient country.

14 ‘‘(2) PRIORITY.—Notwithstanding any other

15 provision of law, the delivery of excess defense arti16 cles under this section to member countries of the

17 North Atlantic Treaty Organization (NATO) on the

18 southern and southeastern flank of NATO and to

19 major non-NATO allies on such southern and south20 eastern flank shall be given priority to the maximum

21 extent feasible over the delivery of such excess de22 fense articles to other countries.

23 ‘‘(d) WAIVER OF REQUIREMENT FOR REIMBURSE24 MENT OF DEPARTMENT OF DEFENSE EXPENSES.—Sec25 tion 632(d) shall not apply with respect to transfers of
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1 excess defense articles (including transportation and relat2 ed costs) under this section.

3 ‘‘(e) TRANSPORTATION AND RELATED COSTS.—

4 ‘‘(1) IN GENERAL.—Except as provided in para5 graph (2), funds available to the Department of De6 fense may not be expended for crating, packing,

7 handling, and transportation of excess defense arti8 cles transferred under the authority of this section.

9 ‘‘(2) EXCEPTION.—The President may provide

10 for the transportation of excess defense articles with11 out charge to a country for the costs of such trans12 portation if—

13 ‘‘(A) it is determined that it is in the na14 tional interest of the United States to do so;

15 ‘‘(B) the recipient is a developing country

16 receiving less than $10,000,000 of assistance

17 under chapter 5 of part II this part of this Act

18 (relating to international military education and

19 training) or section 23 of the Arms Export

20 Control Act (22 U.S.C. 2763; relating to the

21 Foreign Military Financing program) in the fis22 cal year in which the transportation is provided;

23 ‘‘(C) the total weight of the transfer does

24 not exceed 25,000 pounds; and
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1 ‘‘(D) such transportation is accomplished

2 on a space available basis.

3 ‘‘(f) ADVANCE NOTIFICATION TO CONGRESS FOR

4 TRANSFER OF CERTAIN EXCESS DEFENSE ARTICLES.—

5 ‘‘(1) IN GENERAL.—The President may not

6 transfer excess defense articles that are significant

7 military equipment (as defined in section 47(9) of

8 the Arms Export Control Act) or excess defense arti9 cles valued (in terms of original acquisition cost) at

10 $7,000,000 or more, under this section or under the

11 Arms Export Control Act (22 U.S.C. 2751 et seq.)

12 until 15 30 days after the date on which the Presi13 dent has provided notice of the proposed transfer to

14 the congressional committees specified in section

15 634A(a) in accordance with procedures applicable to

16 reprogramming notifications under that section.

17 ‘‘(2) CONTENTS.—Such notification shall in18 clude—

19 ‘‘(A) a statement outlining the purposes

20 for which the article is being provided to the

21 country, including whether such article has

22 been previously provided to such country;

23 ‘‘(B) an assessment of the impact of the

24 transfer on the military readiness of the United

25 States;
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1 ‘‘(C) an assessment of the impact of the

2 transfer on the national technology and indus3 trial base and, particularly, the impact on op4 portunities of entities in the national technology

5 and industrial base to sell new or used equip6 ment to the countries to which such articles are

7 to be transferred; and

8 ‘‘(D) a statement describing the current

9 value of such article and the value of such arti10 cle at acquisition.

11 ‘‘(g) AGGREGATE ANNUAL LIMITATION.—

12 ‘‘(1) IN GENERAL.—The aggregate value of ex13 cess defense articles transferred to countries under

14 this section in any fiscal year may not exceed

15 $350,000,000.

16 ‘‘(2) EFFECTIVE DATE.—The limitation con17 tained in paragraph (1) shall apply only with respect

18 to fiscal years beginning after fiscal year 1996.

19 ‘‘(h) CONGRESSIONAL PRESENTATION DOCU20 MENTS.—Documents described in subsection (a) justifying

21 the transfer of excess defense articles shall include an ex22 planation of the general purposes of providing excess de23 fense articles as well as a table which provides an aggre24 gate annual total of transfers of excess defense articles

25 in the preceding year by country in terms of offers and
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1 actual deliveries and in terms of acquisition cost and cur2 rent value. Such table shall indicate whether such excess

3 defense articles were provided on a grant or sale basis.

4 ‘‘(i) EXCESS COAST GUARD PROPERTY.—For pur5 poses of this section, the term ‘excess defense articles’

6 shall be deemed to include excess property of the Coast

7 Guard, and the term ‘Department of Defense’ shall be

8 deemed, with respect to such excess property, to include

9 the Coast Guard.’’.

10 (b) CONFORMING AMENDMENTS.—

11 (1) ARMS EXPORT CONTROL ACT.—Section

12 21(k) of the Arms Export Control Act (22 U.S.C.

13 2761(k)) is amended by striking ‘‘the President

14 shall’’ and all that follows and inserting the follow15 ing: ‘‘the President shall determine that the sale of

16 such articles will not have an adverse impact on the

17 national technology and industrial base and, particu18 larly, will not reduce the opportunities of entities in

19 the national technology and industrial base to sell

20 new or used equipment to the countries to which

21 such articles are transferred.’’.

22 (2) REPEALS.—The following provisions of law

23 are hereby repealed:

24 (A) Section 502A of the Foreign Assist25 ance Act of 1961 (22 U.S.C. 2303).
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1 (B) Sections 517 through 520 of the For2 eign Assistance Act of 1961 (22 U.S.C. 2321k

3 through 2321n).

4 (C) Section 31(d) of the Arms Export Con5 trol Act (22 U.S.C. 2771(d)).

6 SEC. 105. EXCESS DEFENSE ARTICLES FOR CERTAIN EURO7 PEAN COUNTRIES.

8 Notwithstanding section 516(e) of the Foreign As9 sistance Act of 1961, as added by this Act, during each

10 of the fiscal years 1996 and 1997, funds available to the

11 Department of Defense may be expended for crating,

12 packing, handling, and transportation of excess defense

13 articles transferred under the authority of section 516 of

14 such Act to countries that are eligible to participate in

15 the Partnership for Peace and that are eligible for assist16 ance under the Support for East European Democracy

17 (SEED) Act of 1989.

18 CHAPTER 2—INTERNATIONAL MILITARY

19 EDUCATION AND TRAINING

20 SEC. 111. ASSISTANCE FOR INDONESIA.

21 Funds made available for fiscal years 1996 and 1997

22 to carry out chapter 5 of part II of the Foreign Assistance

23 Act of 1961 (22 U.S.C. 2347 et seq.) may be obligated

24 for Indonesia only for expanded military and education

25 training that meets the requirements of clauses (i)
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1 through (iv) of the second sentence of section 541 of such

2 Act (22 U.S.C. 2347).

3 SEC. 112. ADDITIONAL REQUIREMENTS.

4 (a) GENERAL AUTHORITY.—Section 541 of the For5 eign Assistance Act of 1961 (22 U.S.C. 2347) is amended

6 in the second sentence in the matter preceding clause (i)

7 by inserting ‘‘and individuals who are not members of the

8 government’’ after ‘‘legislators’’.

9 (b) EXCHANGE TRAINING.—Section 544 of such Act

10 (22 U.S.C. 2347c) is amended—

11 (1) by striking ‘‘In carrying out this chapter’’

12 and inserting ‘‘(a) In carrying out this chapter’’; and

13 (2) by adding at the end the following new sub14 section:

15 ‘‘(b) The President may provide for the attendance

16 of foreign military and civilian defense personnel at flight

17 training schools and programs (including test pilot

18 schools) in the United States without charge, and without

19 charge to funds available to carry out this chapter (not20 withstanding section 632(d) of this Act), if such attend21 ance is pursuant to an agreement providing for the ex22 change of students on a one-for-one basis each fiscal year

23 between those United States flight training schools and

24 programs (including test pilot schools) and comparable
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1 flight training schools and programs of foreign coun2 tries.’’.

3 (c) ASSISTANCE FOR CERTAIN HIGH-INCOME FOR4 EIGN COUNTRIES.—

5 (1) AMENDMENT TO THE FOREIGN ASSISTANCE

6 ACT OF 1961.—Chapter 5 of part II of such Act (22

7 U.S.C. 2347 et seq.) is amended by adding at the

8 end the following new section:

9 ‘‘SEC. 546. PROHIBITION ON GRANT ASSISTANCE FOR CER10 TAIN HIGH INCOME FOREIGN COUNTRIES.

11 ‘‘(a) IN GENERAL.—None of the funds made avail12 able for a fiscal year for assistance under this chapter may

13 be made available for assistance on a grant basis for any

14 of the high-income foreign countries described in sub15 section (b) for military education and training of military

16 and related civilian personnel of such country.

17 ‘‘(b) HIGH-INCOME FOREIGN COUNTRIES DE18 SCRIBED.—The high-income foreign countries described in

19 this subsection are Austria, Finland, the Republic of

20 Korea, Singapore, and Spain.’’.

21 (2) AMENDMENT TO THE ARMS EXPORT CON22 TROL ACT.—Section 21(a)(1)(C) of the Arms Export

23 Control Act (22 U.S.C. 2761(a)(1)(C)) is amended

24 by inserting ‘‘or to any high-income foreign country
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1 (as described in that chapter)’’ after ‘‘Foreign As2 sistance Act of 1961’’.

3 CHAPTER 3—ANTITERRORISM

4 ASSISTANCE

5 SEC. 121. ANTITERRORISM TRAINING ASSISTANCE.

6 (a) IN GENERAL.—Section 571 of the Foreign Assist7 ance Act of 1961 (22 U.S.C. 2349aa) is amended by strik8 ing ‘‘Subject to the provisions of this chapter’’ and insert9 ing ‘‘Notwithstanding any other provision of law that re10 stricts assistance to foreign countries (other than sections

11 502B and 620A of this Act)’’.

12 (b) LIMITATIONS.—Section 573 of such Act (22

13 U.S.C. 2349aa–2) is amended—

14 (1) in the heading, by striking ‘‘SPECIFIC AU15 THORITIES AND’’;

16 (2) by striking subsection (a);

17 (3) by redesignating subsections (b) through (f)

18 as subsections (a) through (e), respectively; and

19 (4) in subsection (c) (as redesignated)—

20 (A) by striking paragraphs (1) and (2);

21 (B) by redesignating paragraphs (3)

22 through (5) as paragraphs (1) through (3), re23 spectively; and

24 (C) by amending paragraph (2) (as redes25 ignated) to read as follows:
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1 ‘‘(2)(A) Except as provided in subparagraph (B),

2 funds made available to carry out this chapter shall not

3 be made available for the procurement of weapons and am4 munition.

5 ‘‘(B) Subparagraph (A) shall not apply to small arms

6 and ammunition in categories I and III of the United

7 States Munitions List that are integrally and directly re8 lated to antiterrorism training provided under this chapter

9 if, at least 15 days before obligating those funds, the

10 President notifies the appropriate congressional commit11 tees specified in section 634A of this Act in accordance

12 with the procedures applicable to reprogramming notifica13 tions under such section.

14 ‘‘(C) The value (in terms of original acquisition cost)

15 of all equipment and commodities provided under this

16 chapter in any fiscal year may not exceed 25 percent of

17 the funds made available to carry out this chapter for that

18 fiscal year.’’.

19 (c) ANNUAL REPORT.—Section 574 of such Act (22

20 U.S.C. 2349aa–3) is hereby repealed.

21 (d) TECHNICAL CORRECTIONS.—Section 575 (22

22 U.S.C. 2349aa–4) and section 576 (22 U.S.C. 2349aa–

23 5) of such Act are redesignated as sections 574 and 575,

24 respectively.
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1 SEC. 122. RESEARCH AND DEVELOPMENT EXPENSES.

2 Funds made available for fiscal years 1996 and 1997

3 to carry out chapter 8 of part II of the Foreign Assistance

4 Act of 1961 (22 U.S.C. 2349aa et seq.; relating to

5 antiterrorism assistance) may be made available to the

6 Technical Support Working Group of the Department of

7 State for research and development expenses related to

8 contraband detection technologies or for field demonstra9 tions of such technologies (whether such field demonstra10 tions take place in the United States or outside the United

11 States).

12 CHAPTER 4—INTERNATIONAL NARCOTICS

13 CONTROL ASSISTANCE

14 SEC. 131. ADDITIONAL REQUIREMENTS.

15 (a) POLICY AND GENERAL AUTHORITIES.—Section

16 481(a) of the Foreign Assistance Act (22 U.S.C. 2291(a))

17 is amended—

18 (1) in paragraph (1)—

19 (A) by redesignating subparagraphs (D)

20 through (F) as subparagraphs (E) through (G),

21 respectively; and

22 (B) by inserting after subparagraph (C)

23 the following new subparagraph:

24 ‘‘(D) International criminal activities, particu25 larly international narcotics trafficking, money laun26 dering, and corruption, endanger political and eco-
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1 nomic stability and democratic development, and as2 sistance for the prevention and suppression of inter3 national criminal activities should be a priority for

4 the United States.’’; and

5 (2) in paragraph (4), by adding before the pe6 riod at the end the following: ‘‘, or for other

7 anticrime purposes’’.

8 (b) CONTRIBUTIONS AND REIMBURSEMENT.—Sec9 tion 482(c) of that Act (22 U.S.C. 2291a(c)) is amend10 ed—

11 (1) by striking ‘‘CONTRIBUTION BY RECIPIENT

12 COUNTRY.—To’’ and inserting ‘‘CONTRIBUTIONS

13 AND REIMBURSEMENT.—(1) To’’; and

14 (2) by adding at the end the following new

15 paragraphs:

16 ‘‘(2)(A) The President is authorized to accept con17 tributions from foreign governments to carry out the pur18 poses of this chapter. Such contributions shall be depos19 ited as an offsetting collection to the applicable appropria20 tion account and may be used under the same terms and

21 conditions as funds appropriated pursuant to this chapter.

22 ‘‘(B) At the time of submission of the annual congres23 sional presentation documents required by section 634(a),

24 the President shall provide a detailed report on any con25 tributions received in the preceding fiscal year, the amount
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1 of such contributions, and the purposes for which such

2 contributions were used.

3 ‘‘(3) The President is authorized to provide assist4 ance under this chapter on a reimbursable basis. Such re5 imbursements shall be deposited as an offsetting collection

6 to the applicable appropriation and may be used under the

7 same terms and conditions as funds appropriated pursu8 ant to this chapter.’’.

9 (c) IMPLEMENTATION OF LAW ENFORCEMENT AS10 SISTANCE.—Section 482 of such Act (22 U.S.C. 2291a)

11 is amended by adding at the end the following new sub12 sections:

13 ‘‘(f) TREATMENT OF FUNDS.—Funds transferred to

14 and consolidated with funds appropriated pursuant to this

15 chapter may be made available on such terms and condi16 tions as are applicable to funds appropriated pursuant to

17 this chapter. Funds so transferred or consolidated shall

18 be apportioned directly to the bureau within the Depart19 ment of State responsible for administering this chapter.

20 ‘‘(g) EXCESS PROPERTY.—For purposes of this chap21 ter, the Secretary of State may use the authority of section

22 608, without regard to the restrictions of such section, to

23 receive nonlethal excess property from any agency of the

24 United States Government for the purpose of providing

25 such property to a foreign government under the same
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1 terms and conditions as funds authorized to be appro2 priated for the purposes of this chapter.’’.

3 SEC. 132. NOTIFICATION REQUIREMENT.

4 (a) IN GENERAL.—The authority of section 1003(d)

5 of the National Narcotics Control Leadership Act of 1988

6 (21 U.S.C. 1502(d)) may be exercised with respect to

7 funds authorized to be appropriated pursuant to the For8 eign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) and

9 with respect to the personnel of the Department of State

10 only to the extent that the appropriate congressional com11 mittees have been notified 15 days in advance in accord12 ance with the reprogramming procedures applicable under

13 section 634A of that Act (22 U.S.C. 2394 2394–1).

14 (b) DEFINITION.—For purposes of this section, the

15 term ‘‘appropriate congressional committees’’ means the

16 Committee on International Relations and the Committee

17 on Appropriations of the House of Representatives and the

18 Committee on Foreign Relations and the Committee on

19 Appropriations of the Senate.

20 SEC. 133. WAIVER OF RESTRICTIONS FOR NARCOTICS-RE21 LATED ECONOMIC ASSISTANCE.

22 For each of the fiscal years 1996 and 1997, narcot23 ics-related assistance under part I of the Foreign Assist24 ance Act of 1961 (22 U.S.C. 2151 et seq.) may be pro25 vided notwithstanding any other provision of law that re-
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1 stricts assistance to foreign countries (other than section

2 490(e) or section 502B of that Act (22 U.S.C. 2291j(e)

3 and 2304)) if, at least 15 days before obligating funds

4 for such assistance, the President notifies the appropriate

5 congressional committees (as defined in section 481(e) of

6 that Act (22 U.S.C. 2291(e))) in accordance with the pro7 cedures applicable to reprogramming notifications under

8 section 634A of that Act (22 U.S.C. 2394 2394–1).

9 CHAPTER 5—OTHER PROVISIONS

10 SEC. 141. STANDARDIZATION OF CONGRESSIONAL REVIEW

11 PROCEDURES FOR ARMS TRANSFERS.

12 (a) THIRD COUNTRY TRANSFERS UNDER FMS

13 SALES.—Section 3(d)(2) of the Arms Export Control Act

14 (22 U.S.C. 2753(d)(2)) is amended—

15 (1) in subparagraph (A), by striking ‘‘, as pro16 vided for in sections 36(b)(2) and 36(b)(3) of this

17 Act’’;

18 (2) in subparagraph (B), by striking ‘‘law’’ and

19 inserting ‘‘joint resolution’’; and

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

21 ‘‘(C) If the President states in his certification under

22 subparagraph (A) or (B) that an emergency exists which

23 requires that consent to the proposed transfer become ef24 fective immediately in the national security interests of the

25 United States, thus waiving the requirements of that sub-
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1 paragraph, the President shall set forth in the certification

2 a detailed justification for his determination, including a

3 description of the emergency circumstances which neces4 sitate immediate consent to the transfer and a discussion

5 of the national security interests involved.

6 ‘‘(D)(i) Any joint resolution under this paragraph

7 shall be considered in the Senate in accordance with the

8 provisions of section 601(b) of the International Security

9 Assistance and Arms Export Control Act of 1976.

10 ‘‘(ii) For the purpose of expediting the consideration

11 and enactment of joint resolutions under this paragraph,

12 a motion to proceed to the consideration of any such joint

13 resolution after it has been reported by the appropriate

14 committee shall be treated as highly privileged in the

15 House of Representatives.’’.

16 (b) THIRD COUNTRY TRANSFERS UNDER COMMER17 CIAL SALES.—Section 3(d)(3) of such Act (22 U.S.C.

18 2753(d)(3)) is amended—

19 (1) by inserting ‘‘(A)’’ after ‘‘(3)’’;

20 (2) in the first sentence—

21 (A) by striking ‘‘at least 30 calendar

22 days’’; and

23 (B) by striking ‘‘report’’ and inserting

24 ‘‘certification’’; and
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1 (3) by striking the last sentence and inserting

2 the following: ‘‘Such certification shall be submit3 ted—

4 ‘‘(i) at least 15 calendar days before such con5 sent is given in the case of a transfer to a country

6 which is a member of the North Atlantic Treaty Or7 ganization or Australia, Japan, or New Zealand; and

8 ‘‘(ii) at least 30 calendar days before such con9 sent is given in the case of a transfer to any other

10 country,

11 unless the President states in his certification that an

12 emergency exists which requires that consent to the pro13 posed transfer become effective immediately in the na14 tional security interests of the United States. If the Presi15 dent states in his certification that such an emergency ex16 ists (thus waiving the requirements of clause (i) or (ii),

17 as the case may be, and of subparagraph (B)) the Presi18 dent shall set forth in the certification a detailed justifica19 tion for his determination, including a description of the

20 emergency circumstances which necessitate that consent

21 to the proposed transfer become effective immediately and

22 a discussion of the national security interests involved.

23 ‘‘(B) Consent to a transfer subject to subparagraph

24 (A) shall become effective after the end of the 15-day or

25 30-day period specified in subparagraph (A)(i) or (ii), as
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1 the case may be, only if the Congress does not enact, with2 in that period, a joint resolution prohibiting the proposed

3 transfer.

4 ‘‘(C)(i) Any joint resolution under this paragraph

5 shall be considered in the Senate in accordance with the

6 provisions of section 601(b) of the International Security

7 Assistance and Arms Export Control Act of 1976.

8 ‘‘(ii) For the purpose of expediting the consideration

9 and enactment of joint resolutions under this paragraph,

10 a motion to proceed to the consideration of any such joint

11 resolution after it has been reported by the appropriate

12 committee shall be treated as highly privileged in the

13 House of Representatives.’’.

14 (c) COMMERCIAL SALES.—Section 36(c)(2) of such

15 Act (22 U.S.C. 2776(c)(2)) is amended by amending sub16 paragraphs (A) and (B) to read as follows:

17 ‘‘(A) in the case of a license for an export to

18 the North Atlantic Treaty Organization, any mem19 ber country of that Organization or Australia,

20 Japan, or New Zealand, shall not be issued until at

21 least 15 calendar days after the Congress receives

22 such certification, and shall not be issued then if the

23 Congress, within that 15-day period, enacts a joint

24 resolution prohibiting the proposed export; and
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1 ‘‘(B) in the case of any other license, shall not

2 be issued until at least 30 calendar days after the

3 Congress receives such certification, and shall not be

4 issued then if the Congress, within that 30-day pe5 riod, enacts a joint resolution prohibiting the pro6 posed export.’’.

7 (d) COMMERCIAL MANUFACTURING AGREEMENTS.—

8 Section 36(d) of such Act (22 U.S.C. 2776(d)) is amend9 ed—

10 (1) by inserting ‘‘(1)’’ after ‘‘(d)’’;

11 (2) by striking ‘‘for or in a country not a mem12 ber of the North Atlantic Treaty Organization’’; and

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

14 ‘‘(2) A certification under this subsection shall be

15 submitted—

16 ‘‘(A) at least 15 days before approval is given

17 in the case of an agreement for or in a country

18 which is a member of the North Atlantic Treaty Or19 ganization or Australia, Japan, or New Zealand; and

20 ‘‘(B) at least 30 days before approval is given

21 in the case of an agreement for or in any other

22 country;

23 unless the President states in his certification that an

24 emergency exists which requires the immediate approval
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1 of the agreement in the national security interests of the

2 United States.

3 ‘‘(3) If the President states in his certification that

4 an emergency exists which requires the immediate ap5 proval of the agreement in the national security interests

6 of the United States, thus waiving the requirements of

7 paragraph (4), he shall set forth in the certification a de8 tailed justification for his determination, including a de9 scription of the emergency circumstances which neces10 sitate the immediate approval of the agreement and a dis11 cussion of the national security interests involved.

12 ‘‘(4) Approval for an agreement subject to paragraph

13 (1) may not be given under section 38 if the Congress,

14 within the 15-day or 30-day period specified in paragraph

15 (2)(A) or (B), as the case may be, enacts a joint resolution

16 prohibiting such approval.

17 ‘‘(5)(A) Any joint resolution under paragraph (4)

18 shall be considered in the Senate in accordance with the

19 provisions of section 601(b) of the International Security

20 Assistance and Arms Export Control Act of 1976.

21 ‘‘(B) For the purpose of expediting the consideration

22 and enactment of joint resolutions under paragraph (4),

23 a motion to proceed to the consideration of any such joint

24 resolution after it has been reported by the appropriate
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1 committee shall be treated as highly privileged in the

2 House of Representatives.’’.

3 (e) GOVERNMENT-TO-GOVERNMENT LEASES.—

4 (1) CONGRESSIONAL REVIEW PERIOD.—Section

5 62 of such Act (22 U.S.C. 2796a) is amended—

6 (A) in subsection (a), by striking ‘‘Not less

7 than 30 days before’’ and inserting ‘‘Before’’;

8 (B) in subsection (b)—

9 (i) by striking ‘‘determines, and im10 mediately reports to the Congress’’ and in11 serting ‘‘states in his certification’’; and

12 (ii) by adding at the end of the sub13 section the following: ‘‘If the President

14 states in his certification that such an

15 emergency exists, he shall set forth in the

16 certification a detailed justification for his

17 determination, including a description of

18 the emergency circumstances which neces19 sitate that the lease be entered into imme20 diately and a discussion of the national se21 curity interests involved.’’; and

22 (C) by adding at the end of the section the

23 following:

24 ‘‘(c) The certification required by subsection (a) shall

25 be transmitted—
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1 ‘‘(1) not less than 15 calendar days before the

2 agreement is entered into or renewed in the case of

3 an agreement with the North Atlantic Treaty Orga4 nization, any member country of that Organization

5 or Australia, Japan, or New Zealand; and

6 ‘‘(2) not less than 30 calendar days before the

7 agreement is entered into or renewed in the case of

8 an agreement with any other organization or coun9 try.’’.

10 (2) CONGRESSIONAL DISAPPROVAL.—Section

11 63(a) of such Act (22 U.S.C. 2796b(a)) is amend12 ed—

13 (A) by striking ‘‘(a)(1)’’ and inserting

14 ‘‘(a)’’;

15 (B) by striking out the ‘‘30 calendar days

16 after receiving the certification with respect to

17 that proposed agreement pursuant to section

18 62(a),’’ and inserting in lieu thereof ‘‘the 15-

19 day or 30-day period specified in section 62(c)

20 (1) or (2), as the case may be,’’; and

21 (C) by striking paragraph (2).

22 (f) EFFECTIVE DATE.—The amendments made by

23 this section apply with respect to certifications required

24 to be submitted on or after the date of the enactment of

25 this Act.
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1 SEC. 142. STANDARDIZATION OF THIRD COUNTRY TRANS2 FERS OF DEFENSE ARTICLES.

3 Section 3 of the Arms Export Control Act (22 U.S.C.

4 2753) is amended by inserting after subsection (a) the fol5 lowing new subsection:

6 ‘‘(b) The consent of the President under paragraph

7 (2) of subsection (a) or under paragraph (1) of section

8 505(a) of the Foreign Assistance Act of 1961 (as it relates

9 to subparagraph (B) of such paragraph) shall not be re10 quired for the transfer by a foreign country or inter11 national organization of defense articles sold by the United

12 States under this Act if—

13 ‘‘(1) such articles constitute components incor14 porated into foreign defense articles;

15 ‘‘(2) the recipient is the government of a mem16 ber country of the North Atlantic Treaty Organiza17 tion, the Government of Australia, the Government

18 of Japan, or the Government of New Zealand;

19 ‘‘(3) the recipient is not a country designated

20 under section 620A of the Foreign Assistance Act of

21 1961;

22 ‘‘(4) the United States-origin components are

23 not—

24 ‘‘(A) significant military equipment (as de25 fined in section 47(9));
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1 ‘‘(B) defense articles for which notification

2 to Congress is required under section 36(b);

3 and

4 ‘‘(C) identified by regulation as Missile

5 Technology Control Regime items; and

6 ‘‘(5) the foreign country or international orga7 nization provides notification of the transfer of the

8 defense articles to the United States Government

9 not later than 30 days after the date of such trans10 fer.’’.

11 SEC. 143. INCREASED STANDARDIZATION, RATIONALIZA12 TION, AND INTEROPERABILITY OF ASSIST13 ANCE AND SALES PROGRAMS.

14 Paragraph (6) of section 515(a) of the Foreign As15 sistance Act of 1961 (22 U.S.C. 2321i(a)(6)) is amended

16 by striking ‘‘among members of the North Atlantic Treaty

17 Organization and with the Armed Forces of Japan, Aus18 tralia, and New Zealand’’.

19 SEC. 144. DEFINITION OF SIGNIFICANT MILITARY EQUIP20 MENT.

21 Section 47 of the Arms Export Control Act (22

22 U.S.C. 2794) is amended—

23 (1) in paragraph (7), by striking ‘‘and’’ at the

24 end;
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1 (2) in paragraph (8), by striking the period at

2 the end and inserting ‘‘; and’’; and

3 (3) by adding at the end the following new

4 paragraph:

5 ‘‘(9) ‘significant military equipment’ means articles—

6 ‘‘(A) for which special export controls are war7 ranted because of the capacity of such articles for

8 substantial military utility or capability; and

9 ‘‘(B) identified on the United States Munitions

10 List.’’.

11 SEC. 145. ELIMINATION OF ANNUAL REPORTING REQUIRE12 MENT RELATING TO THE SPECIAL DEFENSE

13 ACQUISITION FUND.

14 (a) IN GENERAL.—Section 53 of the Arms Export

15 Control Act (22 U.S.C. 2795b) is hereby repealed.

16 (b) CONFORMING AMENDMENT.—Section 51(a)(4) of

17 such Act (22 U.S.C. 2795(a)(4)) is amended—

18 (1) by striking ‘‘(a) (A)’’; and

19 (2) by striking subparagraph (B).

20 SEC. 146. COST OF LEASED DEFENSE ARTICLES THAT HAVE

21 BEEN LOST OR DESTROYED.

22 Section 61(a)(4) of the Arms Export Control Act (22

23 U.S.C. 2796(a)(4)) is amended by striking ‘‘and the re24 placement cost’’ and all that follows and inserting the fol-
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1 lowing: ‘‘and, if the articles are lost or destroyed while

2 leased—

3 ‘‘(A) in the event the United States in4 tends to replace the articles lost or destroyed,

5 the replacement cost (less any depreciation in

6 the value) of the articles; or

7 ‘‘(B) in the event the United States does

8 not intend to replace the articles lost or de9 stroyed, an amount not less than the actual

10 value (less any depreciation in the value) speci11 fied in the lease agreement.’’.

12 SEC. 147. DESIGNATION OF MAJOR NON-NATO ALLIES.

13 (a) DESIGNATION.—

14 (1) NOTICE TO CONGRESS.—Chapter 2 of part

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

16 2311 et seq.), as amended by this Act, is further

17 amended by adding at the end the following new sec18 tion:

19 ‘‘SEC. 517. DESIGNATION OF MAJOR NON-NATO ALLIES.

20 ‘‘(a) NOTICE TO CONGRESS.—The President shall no21 tify the Congress in writing at least 30 days before—

22 ‘‘(1) designating a country as a major non23 NATO ally for purposes of this Act and the Arms

24 Export Control Act (22 U.S.C. 2751 et seq.); or

25 ‘‘(2) terminating such a designation.
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1 ‘‘(b) INITIAL DESIGNATIONS.—Australia, Egypt, Is2 rael, Japan, the Republic of Korea, and New Zealand shall

3 be deemed to have been so designated by the President

4 as of the effective date of this section, and the President

5 is not required to notify the Congress of such designation

6 of those countries.’’.

7 (2) DEFINITION.—Section 644 of such Act (22

8 U.S.C. 2403) is amended by adding at the end the

9 following:

10 ‘‘(q) ‘Major non-NATO ally’ means a country which

11 is designated in accordance with section 517 as a major

12 non-NATO ally for purposes of this Act and the Arms Ex13 port Control Act (22 U.S.C. 2751 et seq.).’’.

14 (3) EXISTING DEFINITIONS.—(A) The last sen15 tence of section 21(g) of the Arms Export Control

16 Act (22 U.S.C. 2761(g)) is repealed.

17 (B) Section 65(d) of such Act (22 U.S.C.

18 2796d(d)) is amended—

19 (i) by striking ‘‘or major non-NATO’’; and

20 (ii) by striking out ‘‘or a’’ and all that fol21 lows through ‘‘Code’’.

22 (b) COOPERATIVE TRAINING AGREEMENTS.—Section

23 21(g) of the Arms Export Control Act (22 U.S.C.

24 2761(g)) is amended in the first sentence by striking

25 ‘‘similar agreements’’ and all that follows through ‘‘other
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1 countries’’ and inserting ‘‘similar agreements with coun2 tries’’.

3 SEC. 148. CERTIFICATION THRESHOLDS.

4 (a) INCREASE IN DOLLAR THRESHOLDS.—The Arms

5 Export Control Act (22 U.S.C. 2751 et seq.) is amended—

6 (1) in section 3(d) (22 U.S.C. 2753(d))—

7 (A) in paragraphs (1) and (3), by striking

8 ‘‘$14,000,000’’ each place it appears and in9 serting ‘‘$25,000,000’’; and

10 (B) in paragraphs (1) and (3), by striking

11 ‘‘$50,000,000’’ each place it appears and in12 serting ‘‘$75,000,000’’;

13 (2) in section 36 (22 U.S.C. 2776)—

14 (A) in subsections (b)(1), (b)(5)(C), and

15 (c)(1), by striking ‘‘$14,000,000’’ each place it

16 appears and inserting ‘‘$25,000,000’’;

17 (B) in subsections (b)(1), (b)(5)(C), and

18 (c)(1), by striking ‘‘$50,000,000’’ each place it

19 appears and inserting ‘‘$75,000,000’’; and

20 (C) in subsections (b)(1) and (b)(5)(C), by

21 striking ‘‘$200,000,000’’ each place it appears

22 and inserting ‘‘$300,000,000’’; and

23 (3) in section 63(a) (22 U.S.C. 2796b(a))—

24 (A) by striking ‘‘$14,000,000’’ and insert25 ing ‘‘$25,000,000’’; and
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1 (B) by striking ‘‘$50,000,000’’ and insert2 ing ‘‘$75,000,000’’.

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

4 subsection (a) apply with respect to certifications submit5 ted on or after the date of the enactment of this Act.

6 SEC. 148. ANNUAL MILITARY ASSISTANCE REPORT.

7 Section 655 of the Foreign Assistance Act of 1961 (22

8 U.S.C. 2415) is amended to read as follows:

9 ‘‘SEC. 655. ANNUAL MILITARY ASSISTANCE REPORT.

10 ‘‘(a) REPORT REQUIRED.—Not later than February 1

11 of each year, the President shall transmit to the Congress

12 an annual report for the fiscal year ending the previous

13 September 30.

14 ‘‘(b) INFORMATION RELATING TO MILITARY ASSIST15 ANCE AND MILITARY EXPORTS.—Each such report shall

16 show the aggregate dollar value and quantity of defense ar17 ticles (including excess defense articles), defense services,

18 and international military education and training author19 ized by the United States, excluding that which is pursuant

20 to activies reportable under title V of the National Security

21 Act of 1947, to each foreign country and international orga22 nization. The report shall specify, by category, whether such

23 defense articles—

24 ‘‘(1) were furnished by grant under chapter 2 or

25 chapter 5 of part II of this Act or under any other
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1 authority of law or by sale under chapter 2 of the

2 Arms Export Control Act; or

3 ‘‘(2) were licensed for export under section 38 of

4 the Arms Export Control Act.

5 ‘‘(c) INFORMATION RELATING TO MILITARY IM6 PORTS.—Each such report shall also include the total

7 amount of military items manufactured outside the United

8 States that were imported into the United States during

9 the fiscal year covered by the report. For each country of

10 origin the report shall show the type of item being imported

11 and the total amount of the items.’’.

12 SEC. 149. DEPLETED URANIUM AMMUNITION.

13 Chapter 1 of part III of the Foreign Assistance Act

14 of 1961 (22 U.S.C. 2370 et seq.), as amended by this Act,

15 is further amended by adding at the end the following new

16 section:

17 ‘‘SEC. 620G. DEPLETED URANIUM AMMUNITION.

18 ‘‘(a) PROHIBITION.—Except as provided in sub19 section (b), none of the funds made available to carry out

20 this Act or any other Act may be made available to facili21 tate in any way the sale of M–833 antitank shells or any

22 comparable antitank shells containing a depleted uranium

23 penetrating component to any country other than—

24 ‘‘(1) a country that is a member of the North

25 Atlantic Treaty Organization;
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1 ‘‘(2) a country that has been designated as a

2 major non-NATO ally (as defined in section 644(q));

3 or

4 ‘‘(3) Taiwan.

5 ‘‘(b) EXCEPTION.—The prohibition contained in sub6 section (a) shall not apply with respect to the use of funds

7 to facilitate the sale of antitank shells to a country if the

8 President determines that to do so is in the national secu9 rity interest of the United States.’’.

10 SEC. 150. END-USE MONITORING OF DEFENSE ARTICLES

11 AND DEFENSE SERVICES.

12 (a) IN GENERAL.—The Arms Export Control Act (22

13 U.S.C. 2751 et seq.) is amended by inserting after chapter

14 3 the following new chapter:

15 ‘‘CHAPTER 3A—END-USE MONITORING OF

16 DEFENSE ARTICLES AND DEFENSE

17 SERVICES

18 ‘‘SEC. 40A. END-USE MONITORING OF DEFENSE ARTICLES

19 AND DEFENSE SERVICES.

20 ‘‘(a) ESTABLISHMENT OF MONITORING PROGRAM.—

21 ‘‘(1) IN GENERAL.—In order to improve ac22 countability with respect to defense articles and de23 fense services sold, leased, or exported under this

24 Act or the Foreign Assistance Act of 1961 (22

25 U.S.C. 2151 et seq.), the President shall establish a
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1 program which provides for the end-use monitoring

2 of such articles and services.

3 ‘‘(2) REQUIREMENTS OF PROGRAM.—To the ex4 tent practicable, such program—

5 ‘‘(A) shall provide for the end-use monitor6 ing of defense articles and defense services in

7 accordance with the standards that apply for

8 identifying high-risk exports for regular end-use

9 verification developed under section 38(g)(7) of

10 this Act (commonly referred to as the ‘Blue

11 Lantern’ program); and

12 ‘‘(B) shall be designed to provide reason13 able assurance that—

14 ‘‘(i) the recipient is complying with

15 the requirements imposed by the United

16 States Government with respect to use,

17 transfers, and security of defense articles

18 and defense services; and

19 ‘‘(ii) such articles and services are

20 being used for the purposes for which they

21 are provided.

22 ‘‘(b) CONDUCT OF PROGRAM.—In carrying out the

23 program established under subsection (a), the President

24 shall ensure that the program—
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1 ‘‘(1) provides for the end-use verification of de2 fense articles and defense services that incorporate

3 sensitive technology, defense articles and defense

4 services that are particularly vulnerable to diversion

5 or other misuse, or defense articles or defense serv6 ices whose diversion or other misuse could have sig7 nificant consequences; and

8 ‘‘(2) prevents the diversion (through reverse en9 gineering or other means) of technology incorporated

10 in defense articles.

11 ‘‘(c) REPORT TO CONGRESS.—Not later than 6

12 months after the date of the enactment of this section,

13 and annually thereafter as a part of the annual congres14 sional presentation documents submitted under section

15 634 of the Foreign Assistance Act of 1961, the President

16 shall transmit to the Congress a report describing the ac17 tions taken to implement this section, including a detailed

18 accounting of the costs and number of personnel associ19 ated with the monitoring program.

20 ‘‘(d) THIRD COUNTRY TRANSFERS.—For purposes of

21 this section, defense articles and defense services sold,

22 leased, or exported under this Act or the Foreign Assist23 ance Act of 1961 (22 U.S.C. 2151 et seq.) includes de24 fense articles and defense services that are transferred to

25 a third country or other third party.’’.
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1 (b) EFFECTIVE DATE.—Section 40A of the Arms Ex2 port Control Act, as added by subsection (a), applies with

3 respect to defense articles and defense services provided

4 before or after the date of the enactment of this Act.

5 SEC. 151. BROKERING ACTIVITIES RELATING TO COMMER6 CIAL SALES OF DEFENSE ARTICLES AND

7 SERVICES.

8 (a) IN GENERAL.—Section 38(b)(1)(A) of the Arms

9 Export Control Act (22 U.S.C. 2778(b)(1)(A)) is amend10 ed—

11 (1) in the first sentence, by striking ‘‘As pre12 scribed in regulations’’ and inserting ‘‘(i) As pre13 scribed in regulations’’; and

14 (2) by adding at the end the following new

15 clause:

16 ‘‘(ii)(I) As prescribed in regulations issued under this

17 section, every person (other than an officer or employee

18 of the United States Government acting in official capac19 ity) who engages in the business of brokering activities

20 with respect to the manufacture, export, import, or trans21 fer of any defense article or defense service designated by

22 the President under subsection (a)(1), or in the business

23 of brokering activities with respect to the manufacture, ex24 port, import, or transfer of any foreign defense article or

25 defense service (as defined in subclause (IV)), shall reg-
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1 ister with the United States Government agency charged

2 with the administration of this section, and shall pay a

3 registration fee which shall be prescribed by such regula4 tions.

5 ‘‘(II) Such brokering activities shall include the fi6 nancing, transportation, freight forwarding, or taking of

7 any other action that facilitates the manufacture, export,

8 or import of a defense article or defense service.

9 ‘‘(III) No person may engage in the business of

10 brokering activities described in subclause (I) without a

11 license, issued in accordance with this Act, except that no

12 license shall be required for such activities undertaken by

13 or for an agency of the United States Government—

14 ‘‘(aa) for use by an agency of the United States

15 Government; or

16 ‘‘(bb) for carrying out any foreign assistance or

17 sales program authorized by law and subject to the

18 control of the President by other means.

19 ‘‘(IV) For purposes of this clause, the term ‘foreign

20 defense article or defense service’ includes any non-United

21 States defense article or defense service of a nature de22 scribed on the United States Munitions List regardless of

23 whether such article or service is of United States origin

24 or whether such article or service contains United States

25 origin components.’’.
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1 (b) EFFECTIVE DATE.—Section 38(b)(1)(A)(ii) of

2 the Arms Export Control Act, as added by subsection (a),

3 shall apply with respect to brokering activities engaged in

4 beginning on or after 120 days after the enactment of this

5 Act.

6 SEC. 152. RETURN AND EXCHANGES OF DEFENSE ARTICLES

7 PREVIOUSLY TRANSFERRED PURSUANT TO

8 THE ARMS EXPORT CONTROL ACT.

9 (a) REPAIR OF DEFENSE ARTICLES.—Section 21 of

10 the Arms Export Control Act (22 U.S.C. 2761) is amend11 ed by adding at the end the following new subsection:

12 ‘‘(l) REPAIR OF DEFENSE ARTICLES.—

13 ‘‘(1) IN GENERAL.—The President may acquire

14 a repairable defense article from a foreign country

15 or international organization if such defense arti16 cle—

17 ‘‘(A) previously was transferred to such

18 country or organization under this Act;

19 ‘‘(B) is not an end item; and

20 ‘‘(C) will be exchanged for a defense article

21 of the same type that is in the stocks of the De22 partment of Defense.

23 ‘‘(2) LIMITATION.—The President may exercise

24 the authority provided in paragraph (1) only to the

25 extent that the Department of Defense—
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1 ‘‘(A)(i) has a requirement for the defense

2 article being returned; and

3 ‘‘(ii) has available sufficient funds author4 ized and appropriated for such purpose; or

5 ‘‘(B)(i) is accepting the return of the de6 fense article for subsequent transfer to another

7 foreign government or international organiza8 tion pursuant to a letter of offer and acceptance

9 implemented in accordance with this Act; and

10 ‘‘(ii) has available sufficient funds provided

11 by or on behalf of such other foreign govern12 ment or international organization pursuant to

13 a letter of offer and acceptance implemented in

14 accordance with this Act.

15 ‘‘(3) REQUIREMENT.—(A) The foreign govern16 ment or international organization receiving a new

17 or repaired defense article in exchange for a repair18 able defense article pursuant to paragraph (1) shall,

19 upon the acceptance by the United States Govern20 ment of the repairable defense article being re21 turned, be charged the total cost associated with the

22 repair and replacement transaction.

23 ‘‘(B) The total cost charged pursuant to sub24 paragraph (A) shall be the same as that charged the

25 United States Armed Forces for a similar repair and
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1 replacement transaction, plus an administrative sur2 charge in accordance with subsection (e)(1)(A) of

3 this section.

4 ‘‘(4) RELATIONSHIP TO CERTAIN OTHER PROVI5 SIONS OF LAW.—The authority of the President to

6 accept the return of a repairable defense article as

7 provided in subsection (a) shall not be subject to

8 chapter 137 of title 10, United States Code, or any

9 other provision of law relating to the conclusion of

10 contracts.’’.

11 (b) RETURN OF DEFENSE ARTICLES.—Section 21 of

12 such Act (22 U.S.C. 2761), as amended by this Act, is

13 further amended by adding at the end the following new

14 subsection:

15 ‘‘(m) RETURN OF DEFENSE ARTICLES.—

16 ‘‘(1) IN GENERAL.—The President may accept

17 the return of a defense article from a foreign coun18 try or international organization if such defense arti19 cle—

20 ‘‘(A) previously was transferred to such

21 country or organization under this Act;

22 ‘‘(B) is not significant military equipment

23 (as defined in section 47(9) of this Act); and

24 ‘‘(C) is in fully functioning condition with25 out need of repair or rehabilitation.
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1 ‘‘(2) LIMITATION.—The President may exercise

2 the authority provided in paragraph (1) only to the

3 extent that the Department of Defense—

4 ‘‘(A)(i) has a requirement for the defense

5 article being returned; and

6 ‘‘(ii) has available sufficient funds author7 ized and appropriated for such purpose; or

8 ‘‘(B)(i) is accepting the return of the de9 fense article for subsequent transfer to another

10 foreign government or international organiza11 tion pursuant to a letter of offer and acceptance

12 implemented in accordance with this Act; and

13 ‘‘(ii) has available sufficient funds provided

14 by or on behalf of such other foreign govern15 ment or international organization pursuant to

16 a letter of offer and acceptance implemented in

17 accordance with this Act.

18 ‘‘(3) CREDIT FOR TRANSACTION.—Upon acqui19 sition and acceptance by the United States Govern20 ment of a defense article under paragraph (1), the

21 appropriate Foreign Military Sales account of the

22 provider shall be credited to reflect the transaction.

23 ‘‘(4) RELATIONSHIP TO CERTAIN OTHER PROVI24 SIONS OF LAW.—The authority of the President to

25 accept the return of a defense article as provided in
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1 paragraph (1) shall not be subject to chapter 137 of

2 title 10, United States Code, or any other provision

3 of law relating to the conclusion of contracts.’’.

4 (c) REGULATIONS.—Under the direction of the Presi5 dent, the Secretary of Defense shall promulgate regula6 tions to implement subsections (l) and (m) of section 21

7 of the Arms Export Control Act, as added by this section.

8 SEC. 153. NATIONAL SECURITY INTEREST DETERMINATION

9 TO WAIVE REIMBURSEMENT OF DEPRECIA10 TION FOR LEASED DEFENSE ARTICLES.

11 (a) IN GENERAL.—Section 61(a) of the Arms Export

12 Control Act (22 U.S.C. 2796(a)) is amended—

13 (1) in the second sentence, by striking ‘‘, or to

14 any defense article which has passed three-quarters

15 of its normal service life’’; and

16 (2) by inserting after the second sentence the

17 following new sentence: ‘‘The President may waive

18 the requirement of paragraph (4) for reimbursement

19 of depreciation for any defense article which has

20 passed three-quarters of its normal service life if the

21 President determines that to do so is important to

22 the national security interest of the United States.’’.

23 (b) EFFECTIVE DATE.—The third sentence of section

24 61(a) of the Arms Export Control Act, as added by sub25 section (a)(2), shall apply only with respect to a defense
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1 article leased on or after the date of the enactment of this

2 Act.

3 SEC. 154. ELIGIBILITY OF PANAMA UNDER THE ARMS EX4 PORT CONTROL ACT.

5 The Government of the Republic of Panama shall be

6 eligible to purchase defense articles and defense services

7 under the Arms Export Control Act (22 U.S.C. 2751 et

8 seq.), except as otherwise specifically provided by law.

9 SEC. 155. PUBLICATION OF ARMS SALES CERTIFICATIONS.

10 Section 36 of the Arms Export Control Act (22 U.S.C.

11 2776) is amended by adding at the end the following new

12 subsection:

13 ‘‘(e) The President shall cause to be published in the

14 Federal Register, upon transmittal to the Speaker of the

15 House of Representatives and to the chairman of the Com16 mittee on Foreign Relations of the Senate, the full

17 unclassified text of each numbered certification submitted

18 pursuant to subsection (b) and each notification of a pro19 posed commercial sale submitted under subsection (c).’’.

20 SEC. 156. RELEASE OF INFORMATION.

21 Section 38(e) of the Arms Export Control Act (22

22 U.S.C. 2778(e)) is amended by inserting in the first sen23 tence before the period at the end the following: ‘‘, except

24 that the names of the countries and the types and quantities

25 of defense articles for which licenses are issued under this
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1 section shall not be withheld from public disclosure unless

2 the President determines that the release of such informa3 tion would be contrary to the national interest’’.

4 SEC. 157. REPEAL OF TERMINATION OF PROVISIONS OF

5 THE NUCLEAR PROLIFERATION PREVENTION

6 ACT OF 1994; PRESIDENTIAL DETERMINA7 TIONS.

8 (a) REPEAL.—Part D of the Nuclear Proliferation

9 Prevention Act of 1994 (part D of title VIII of the Foreign

10 Relations Authorization Act, Fiscal Years 1994 and 1995;

11 Public Law 103–236; 108 Stat. 525) is hereby repealed.

12 (b) JUDICIAL REVIEW.—Section 824 of the Nuclear

13 Proliferation Prevention Act of 1994 (22 U.S.C. 3201 note)

14 is amended—

15 (1) in subsection (c), by striking ‘‘in writing

16 after opportunity for a hearing on the record’’;

17 (2) by striking subsection (e); and

18 (3) by redesignating subsections (f) through (k)

19 as subsections (e) through (j), respectively.

20 TITLE II—TRANSFER OF NAVAL

21 VESSELS TO CERTAIN FOR22 EIGN COUNTRIES

23 SEC. 201. AUTHORITY TO TRANSFER NAVAL VESSELS.

24 (a) EGYPT.—The Secretary of the Navy is authorized

25 to transfer to the Government of Egypt the ‘‘OLIVER
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1 HAZARD PERRY CLASS’’ frigate GALLERY. Such

2 transfer shall be on a sales basis under section 21 of the

3 Arms Export Control Act (22 U.S.C. 2761; relating to the

4 foreign military sales program).

5 (b) MEXICO.—The Secretary of the Navy is author6 ized to transfer to the Government of Mexico the

7 ‘‘KNOX’’ class frigates STEIN (FF 1065) and MARVIN

8 SHIELDS (FF 1066). Such transfers shall be on a sales

9 basis under section 21 of the Arms Export Control Act

10 (22 U.S.C. 2761; relating to the foreign military sales pro11 gram).

12 (c) NEW ZEALAND.—The Secretary of the Navy is

13 authorized to transfer to the Government of New Zealand

14 the ‘‘STALWART’’ class ocean surveillance ship TENA15 CIOUS. Such transfer shall be on a sales basis under sec16 tion 21 of the Arms Export Control Act (22 U.S.C. 2761;

17 relating to the foreign military sales program).

18 (d) PORTUGAL.—The Secretary of the Navy is au19 thorized to transfer to the Government of Portugal the

20 ‘‘STALWART’’ class ocean surveillance ship AUDA21 CIOUS. Such transfer shall be on a grant basis under sec22 tion 516 of the Foreign Assistance Act of 1961 (22 U.S.C.

23 2321j; relating to transfers of excess defense articles).

24 (e) TAIWAN.—The Secretary of the Navy is author25 ized to transfer to the Taipei Economic and Cultural Rep-
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1 resentative Office in the United States (which is the Tai2 wan instrumentality designated pursuant to section 10(a)

3 of the Taiwan Relations Act) the following:

4 (1) The ‘‘KNOX’’ class frigates AYLWIN (FF

5 1081), PHARRIS (FF 1094), and VALDEZ (FF

6 1096). Such transfers shall be on a sales basis under

7 section 21 of the Arms Export Control Act (22

8 U.S.C. 2761; relating to the foreign military sales

9 program).

10 (2) The ‘‘NEWPORT’’ class tank landing ship

11 NEWPORT (LST 1179). Such transfer shall be on

12 a lease basis under section 61 of the Arms Export

13 Control Act (22 U.S.C. 2796).

14 (f) THAILAND.—The Secretary of the Navy is author15 ized to transfer to the Government of Thailand the

16 ‘‘KNOX’’ class frigate OUELLET (FF 1077). Such

17 transfer shall be on a sales basis under section 21 of the

18 Arms Export Control Act (22 U.S.C. 2761; relating to the

19 foreign military sales program).

20 SEC. 202. COSTS OF TRANSFERS.

21 Any expense of the United States in connection with

22 a transfer authorized by this title shall be charged to the

23 recipient.
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1 SEC. 203. EXPIRATION OF AUTHORITY.

2 The authority granted by section 201 shall expire at

3 the end of the 2-year period beginning on the date of the

4 enactment of this Act.

5 SEC. 204. REPAIR AND REFURBISHMENT OF VESSELS IN

6 UNITED STATES SHIPYARDS.

7 The Secretary of the Navy shall require, to the maxi8 mum extent possible, as a condition of a transfer of a ves9 sel under this title, that the country to which the vessel

10 is transferred have such repair or refurbishment of the

11 vessel as is needed, before the vessel joins the naval forces

12 of that country, performed at a shipyard located in the

13 United States, including a United States Navy shipyard.