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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4919 Referred in Senate (RFS)]

  2d Session
                                H. R. 4919

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             July 25, 2000

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

_______________________________________________________________________

                                 AN ACT

 
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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Defense and Security Assistance Act 
of 2000''.

                      TITLE I--SECURITY ASSISTANCE

SEC. 101. ADDITIONS TO UNITED STATES WAR RESERVE STOCKPILES FOR ALLIES.

    Section 514(b)(2) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2321h(b)(2)) is amended to read as follows:
            ``(2)(A) The value of such additions to stockpiles of 
        defense articles in foreign countries shall not exceed 
        $50,000,000 for fiscal year 2001.
            ``(B) Of the amount specified in subparagraph (A) for 
        fiscal year 2001, not more than $50,000,000 may be made 
        available for stockpiles in the Republic of Korea.''.

SEC. 102. TRANSFER OF CERTAIN OBSOLETE OR SURPLUS DEFENSE ARTICLES IN 
              THE WAR RESERVE STOCKPILES FOR ALLIES TO ISRAEL.

    (a) Transfers to Israel.--
            (1) Authority.--Notwithstanding section 514 of the Foreign 
        Assistance Act of 1961 (22 U.S.C. 2321h), the President is 
        authorized to transfer to Israel, in return for concessions to 
        be negotiated by the Secretary of Defense, with the concurrence 
        of the Secretary of State, any or all of the items described in 
        paragraph (2).
            (2) Items covered.--The items referred to in paragraph (1) 
        are munitions, equipment, and material such as armor, 
        artillery, automatic weapons ammunition, and missiles that--
                    (A) are obsolete or surplus items;
                    (B) are in the inventory of the Department of 
                Defense;
                    (C) are intended for use as reserve stocks for 
                Israel; and
                    (D) as of the date of the enactment of this Act, 
                are located in a stockpile in Israel.
    (b) Concessions.--The value of concessions negotiated pursuant to 
subsection (a) shall be at least equal to the fair market value of the 
items transferred. The concessions may include cash compensation, 
services, waiver of charges otherwise payable by the United States, and 
other items of value.
    (c) Advance Notification of Transfer.--Not less than 30 days before 
making a transfer under the authority of this section, the President 
shall transmit to the Committee on Foreign Relations of the Senate, and 
the Committee on International Relations of the House of 
Representatives a notification of the proposed transfer. The 
notification shall identify the items to be transferred and the 
concessions to be received.
    (d) Expiration of Authority.--No transfer may be made under the 
authority of this section 3 years after the date of the enactment of 
this Act.

SEC. 103. EXCESS DEFENSE ARTICLES FOR MONGOLIA.

    (a) Uses for Which Funds Are Available.--Notwithstanding section 
516(e) of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j(e)), 
during each of the fiscal years 2000 and 2001, funds available to the 
Department of Defense may be expended for crating, packing, handling, 
and transportation of excess defense articles transferred under the 
authority of section 516 of that Act to Mongolia.
    (b) Content of Congressional Notification.--Each notification 
required to be submitted under section 516(f) of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2321j(f)) with respect to a proposed transfer of 
a defense article described in subsection (a) shall include an estimate 
of the amount of funds to be expended under subsection (a) with respect 
to that transfer.

SEC. 104. SENSE OF THE CONGRESS RELATING TO MILITARY EQUIPMENT FOR THE 
              PHILIPPINES.

    (a) In General.--It is the sense of the Congress that the United 
States Government should work with the Government of the Republic of 
the Philippines to enable that Government to procure military equipment 
that can be used to upgrade the capabilities and to improve the quality 
of life of the armed forces of the Philippines.
    (b) Military Equipment.--Military equipment described in subsection 
(a) should include--
            (1) naval vessels, including amphibious landing crafts, for 
        patrol, search-and-rescue, and transport;
            (2) F-5 aircraft and other aircraft that can assist with 
        reconnaissance, search-and-rescue, and resupply;
            (3) attack, transport, and search-and-rescue helicopters; 
        and
            (4) vehicles and other personnel equipment.

SEC. 105. ANNUAL MILITARY ASSISTANCE REPORT.

    Section 655(b)(3) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2415(b)(3)) is amended by inserting before the period at the end the 
following: ``, including those defense articles that were exported''.

SEC. 106. REQUIREMENTS RELATING TO COUNTRY EXEMPTIONS FOR LICENSING OF 
              DEFENSE ITEMS FOR EXPORT TO FOREIGN COUNTRIES.

    (a) Requirements of Exemption.--Section 38 of the Arms Export 
Control Act (22 U.S.C. 2778) is amended by adding at the end the 
following:
    ``(j) Requirements Relating to Country Exemptions for Licensing of 
Defense Items for Export to Foreign Countries.--
            ``(1) Requirement for bilateral agreement.--
                    ``(A) In general.--The President may utilize the 
                regulatory or other authority pursuant to this Act to 
                exempt a foreign country from the licensing 
                requirements of this Act with respect to exports of 
                defense items only if the United States Government has 
                concluded an agreement described in paragraph (2) with 
                the foreign country that is legally-binding as a matter 
                of domestic and international law on both the United 
                States and that country.
                    ``(B) Exception.--The requirement to conclude a 
                bilateral agreement in accordance with subparagraph (A) 
                shall not apply with respect to an exemption for Canada 
                from the licensing requirements of this Act for the 
                export of defense items.
            ``(2) Requirements of bilateral agreement.--A bilateral 
        agreement referred to paragraph (1)--
                    ``(A) shall, at a minimum, require the foreign 
                country, as necessary, to revise its policies and 
                practices, and promulgate or enact necessary 
                modifications to its laws and regulations to establish 
                an export control regime that is at least comparable to 
                United States law, regulation, and policy regarding--
                            ``(i) handling of all United States-origin 
                        defense items exported to the foreign country, 
                        including prior written United States 
                        Government approval for any reexports to third 
                        countries;
                            ``(ii) end-use and retransfer control 
                        commitments, including securing binding end-use 
                        and retransfer control commitments from all 
                        end-users, including such documentation as is 
                        needed in order to ensure compliance and 
                        enforcement with respect to such United States-
                        origin defense items;
                            ``(iii) establishment of a procedure 
                        comparable to a `watchlist' (if such a 
                        watchlist does not exist) and full cooperation 
                        with United States Government law enforcement 
                        and intelligence agencies to allow for sharing 
                        of export and import documentation and 
                        background information on foreign businesses 
                        and individuals employed by or otherwise 
                        connected to those businesses; and
                            ``(iv) establishment of a list of 
                        controlled defense items to ensure coverage of 
                        those items to be exported under the exemption; 
                        and
                    ``(B) should, at a minimum, require the foreign 
                country, as necessary, to revise its policies and 
                practices, and promulgate or enact necessary 
                modifications to its laws and regulations to establish 
                an export control regime that is at least comparable to 
                United States law, regulation, and policy regarding--
                            ``(i) controls on the export of tangible or 
                        intangible technology, including via fax, 
                        phone, and electronic media;
                            ``(ii) appropriate controls on unclassified 
                        information exported to foreign nationals;
                            ``(iii) controls on arms trafficking and 
                        brokering; and
                            ``(iv) violations and penalties of export 
                        control laws.
            ``(3) Advance notification.--Not less than 30 days before 
        authorizing an exemption for a foreign country from the 
        licensing requirements of this Act for the export of defense 
        items, the President shall transmit to the Committee on 
        International Relations of the House of Representatives and the 
        Committee on Foreign Relations of the Senate a notification 
        that--
                    ``(A) the United States has entered into a 
                bilateral agreement with that foreign country 
                satisfying all requirements set forth in paragraph (2);
                    ``(B) the foreign country has promulgated or 
                enacted all necessary modifications to its laws and 
                regulations to comply with its obligations under the 
                bilateral agreement with the United States; and
                    ``(C) confirms that the appropriate congressional 
                committees will continue to receive notifications 
                pursuant to the authorities, procedures, and practices 
                of section 36 of this Act for defense exports to a 
                foreign country to which that section would apply and 
                without regard to any form of defense export licensing 
                exemption otherwise available for that country.
            ``(4) Definitions.--In this section:
                    ``(A) Defense item.--The term `defense item' means 
                defense articles, defense services, and related 
                technical data.
                    ``(B) Appropriate congressional committees.--The 
                term `appropriate congressional committees' means--
                            ``(i) the Committee on International 
                        Relations and the Committee on Appropriations 
                        of the House of Representatives; and
                            ``(ii) the Committee on Foreign Relations 
                        and the Committee on Appropriations of the 
                        Senate.''.
    (b) Notification of Exemption.--Section 38(f) of the Arms Export 
Control Act (22 U.S.C. 2778(f)) is amended--
            (1) by inserting ``(1)'' after ``(f)''; and
            (2) by adding at the end the following:
    ``(2) The President may not authorize an exemption for a foreign 
country from the licensing requirements of this Act for the export of 
defense items under subsection (j) or any other provision of this Act 
until 45 days after the date on which the President has transmitted to 
the Committee on International Relations of the House of 
Representatives and the Committee on Foreign Relations of the Senate a 
notification that includes--
            ``(A) a description of the scope of the exemption, 
        including a detailed summary of the defense articles, defense 
        services, and related technical data proposed to be exported 
        under the exemption; and
            ``(B) a determination by the Attorney General that the 
        bilateral agreement requires sufficient documentation relating 
        to the export of United States defense articles, defense 
        services, and related technical data under an exemption which 
        will be compiled and maintained in order to facilitate law 
        enforcement efforts to detect, prevent, and prosecute criminal 
        violations of any provision of this Act, including the efforts 
        on the part of countries and factions engaged in international 
        terrorism to illicitly acquire sophisticated United States 
        weaponry.''.
    (c) Notification Relating to Export of Commercial Communications 
Satellite.--Section 36(c)(1) of the Arms Export Control Act (22 U.S.C. 
2776(c)(1)) is amended in the first sentence by inserting at the end 
before the period the following: ``, except that a certification shall 
not be required in the case of an application for a license for export 
of a commercial communications satellite designated on the United 
States Munitions List for launch from, and by nationals of, the United 
States, or the territory of a member country of the North Atlantic 
Treaty Organization (NATO), the Russian Federation, Ukraine, Australia, 
Japan, or New Zealand''.

SEC. 107. REPORT ON GOVERNMENT-TO-GOVERNMENT ARMS SALES END-USE 
              MONITORING PROGRAM.

    Not later than 90 days after the date of the enactment of this Act, 
the President shall prepare and transmit to the Committee on 
International Relations and the Committee on Foreign Relations of the 
Senate a report that contains a summary of the status of the efforts of 
the Defense Security Cooperation Agency to implement the End-Use 
Monitoring Enhancement Plan relating to government-to-government 
transfers of defense articles, defense services, and related 
technologies.

SEC. 108. WAIVER OF CERTAIN COSTS.

    Notwithstanding any other provision of law, the President may waive 
the requirement to impose an appropriate charge for a proportionate 
amount of any nonrecurring costs of research, development, and 
production under section 21(e)(1)(B) of the Arms Export Control Act (22 
U.S.C. 2761(e)(1)(B)) for the November 1999 sale of 5 UH-60L 
helicopters to the Republic of Colombia in support of counternarcotics 
activities.

                  TITLE II--TRANSFERS OF NAVAL VESSELS

SEC. 201. AUTHORITY TO TRANSFER NAVAL VESSELS TO CERTAIN FOREIGN 
              COUNTRIES.

    (a) Brazil.--The President is authorized to transfer to the 
Government of Brazil the ``THOMASTON'' class dock landing ships ALAMO 
(LSD 33) and HERMITAGE (LSD 34) and the ``GARCIA'' class frigates 
BRADLEY (FF 1041), DAVIDSON (FF 1045), SAMPLE (FF 1048), and ALBERT 
DAVID (FF 1050). Such transfers shall be on a grant basis under section 
516 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j).
    (b) Chile.--The President is authorized to transfer to the 
Government of the Chile the ``OLIVER HAZARD PERRY'' class guided 
missile frigates WADSWORTH (FFG 9) and ESTOCIN (FFG 15). Such transfers 
shall be on a combined lease-sale basis under sections 61 and 21 of the 
Arms Export Control Act (22 U.S.C. 2796, 2761).
    (c) Greece.--The President is authorized to transfer to the 
Government of Greece the ``KNOX'' class frigates VREELAND (FF 1068) and 
TRIPPE (FF 1075). Such transfers shall be on a grant basis under 
section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j).
    (d) Turkey.--The President is authorized to transfer to the 
Government of Turkey the `OLIVER HAZARD PERRY` class guided missile 
frigates JOHN A MOORE (FFG 19) and FLATLEY (FFG 21). Such transfers 
shall be on a combined lease-sale basis under sections 61 and 21 of the 
Arms Export Control Act (22 U.S.C. 2796, 2761).

SEC. 202. INAPPLICABILITY OF AGGREGATE ANNUAL LIMITATION ON VALUE OF 
              TRANSFERRED EXCESS DEFENSE ARTICLES.

    In the case of the transfer of a naval vessel authorized under 
section 201 of this Act to be transferred on a grant basis under 
section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j), 
the value of the vessel transferred shall not be included for purposes 
of subsection (g) of that section in the aggregate value of excess 
defense articles transferred to countries under that section in any 
fiscal year.

SEC. 203. COSTS OF TRANSFERS.

    Any expense incurred by the United States in connection with a 
transfer authorized by this title shall be charged to the recipient.

SEC. 204. CONDITIONS RELATING TO COMBINED LEASE-SALE TRANSFERS.

    A transfer of a vessel on a combined lease-sale basis authorized by 
section 201 shall be made in accordance with the following 
requirements:
            (1) The President may initially transfer the vessel by 
        lease, with lease payments suspended for the term of the lease, 
        if the country entering into the lease for the vessel 
        simultaneously enters into a foreign military sales agreement 
        for the transfer of title to the vessel.
            (2) The President may not deliver to the purchasing country 
        title to the vessel until the purchase price of the vessel 
        under such a foreign military sales agreement is paid in full.
            (3) Upon payment of the purchase price in full under such a 
        sales agreement and delivery of title to the recipient country, 
        the President shall terminate the lease.
            (4) If the purchasing country fails to make full payment of 
        the purchase price in accordance with the sales agreement--
                    (A) the sales agreement shall be immediately 
                terminated;
                    (B) the suspension of lease payments under the 
                lease shall be vacated; and
                    (C) the United States shall be entitled to retain 
                all funds received on or before the date of the 
                termination under the sales agreement, up to the amount 
                of lease payments due and payable under the lease and 
                all other costs required by the lease to be paid to 
                that date.
            (5) If a sales agreement is terminated pursuant to 
        paragraph (4), the United States shall not be required to pay 
        any interest to the recipient country on any amount paid to the 
        United States by the recipient country under the sales 
        agreement and not retained by the United States under the 
        lease.

SEC. 205. FUNDING OF CERTAIN COSTS OF TRANSFERS.

    There is authorized to be appropriated to the Defense Vessels 
Transfer Program Account such funds as may be necessary to cover the 
costs (as defined in section 502 of the Congressional Budget Act of 
1974 (2 U.S.C. 661a)) of the lease-sale transfers authorized by section 
201. Funds appropriated pursuant to the authorization of appropriations 
under preceding sentence for the purpose described in such sentence may 
not be available for any other purpose.

SEC. 206. REPAIR AND REFURBISHMENT IN UNITED STATES SHIPYARDS.

    To the maximum extent practicable, the President shall require, as 
a condition of the transfer of a vessel under section 201, that the 
country to which the vessel is transferred have such repair or 
refurbishment of the vessel as is needed, before the vessel joins the 
naval forces of that country, performed at a shipyard located in the 
United States, including a United States Navy shipyard.

SEC. 207. SENSE OF THE CONGRESS REGARDING TRANSFER OF NAVAL VESSELS ON 
              A GRANT BASIS.

    It is the sense of the Congress that naval vessels authorized under 
section 201 of this Act to be transferred to foreign countries on a 
grant basis under section 516 of the Foreign Assistance Act of 1961 (22 
U.S.C. 2321j) should be so transferred only if the United States 
receives appropriate benefits from such countries for transferring the 
vessel on a grant basis.

SEC. 208. EXPIRATION OF AUTHORITY.

    The authority granted by section 201 of this Act shall expire 2 
years after the date of the enactment of this Act.

            Passed the House of Representatives July 24, 2000.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.
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