IIB

106TH CONGRESS

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.
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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 ‘‘Defense and Security

5 Assistance Act of 2000’’.

6 TITLE I—SECURITY ASSISTANCE

7 SEC. 101. ADDITIONS TO UNITED STATES WAR RESERVE

8 STOCKPILES FOR ALLIES.

9 Section 514(b)(2) of the Foreign Assistance Act of

10 1961 (22 U.S.C. 2321h(b)(2)) is amended to read as fol11 lows:

12 ‘‘(2)(A) The value of such additions to stock13 piles of defense articles in foreign countries shall not

14 exceed $50,000,000 for fiscal year 2001.

15 ‘‘(B) Of the amount specified in subparagraph

16 (A) for fiscal year 2001, not more than $50,000,000

17 may be made available for stockpiles in the Republic

18 of Korea.’’.

19 SEC. 102. TRANSFER OF CERTAIN OBSOLETE OR SURPLUS

20 DEFENSE ARTICLES IN THE WAR RESERVE

21 STOCKPILES FOR ALLIES TO ISRAEL.

22 (a) TRANSFERS TO ISRAEL.—

23 (1) AUTHORITY.—Notwithstanding section 514

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

25 2321h), the President is authorized to transfer to
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1 Israel, in return for concessions to be negotiated by

2 the Secretary of Defense, with the concurrence of

3 the Secretary of State, any or all of the items de4 scribed in paragraph (2).

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

6 paragraph (1) are munitions, equipment, and mate7 rial such as armor, artillery, automatic weapons am8 munition, and missiles that—

9 (A) are obsolete or surplus items;

10 (B) are in the inventory of the Department

11 of Defense;

12 (C) are intended for use as reserve stocks

13 for Israel; and

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

15 Act, are located in a stockpile in Israel.

16 (b) CONCESSIONS.—The value of concessions nego17 tiated pursuant to subsection (a) shall be at least equal

18 to the fair market value of the items transferred. The con19 cessions may include cash compensation, services, waiver

20 of charges otherwise payable by the United States, and

21 other items of value.

22 (c) ADVANCE NOTIFICATION OF TRANSFER.—Not

23 less than 30 days before making a transfer under the au24 thority of this section, the President shall transmit to the

25 Committee on Foreign Relations of the Senate, and the
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1 Committee on International Relations of the House of

2 Representatives a notification of the proposed transfer.

3 The notification shall identify the items to be transferred

4 and the concessions to be received.

5 (d) EXPIRATION OF AUTHORITY.—No transfer may

6 be made under the authority of this section 3 years after

7 the date of the enactment of this Act.

8 SEC. 103. EXCESS DEFENSE ARTICLES FOR MONGOLIA.

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

10 Notwithstanding section 516(e) of the Foreign Assistance

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

12 years 2000 and 2001, funds available to the Department

13 of Defense may be expended for crating, packing, han14 dling, and transportation of excess defense articles trans15 ferred under the authority of section 516 of that Act to

16 Mongolia.

17 (b) CONTENT OF CONGRESSIONAL NOTIFICATION.—

18 Each notification required to be submitted under section

19 516(f) of the Foreign Assistance Act of 1961 (22 U.S.C.

20 2321j(f)) with respect to a proposed transfer of a defense

21 article described in subsection (a) shall include an esti22 mate of the amount of funds to be expended under sub23 section (a) with respect to that transfer.
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1 SEC. 104. SENSE OF THE CONGRESS RELATING TO MILI2 TARY EQUIPMENT FOR THE PHILIPPINES.

3 (a) IN GENERAL.—It is the sense of the Congress

4 that the United States Government should work with the

5 Government of the Republic of the Philippines to enable

6 that Government to procure military equipment that can

7 be used to upgrade the capabilities and to improve the

8 quality of life of the armed forces of the Philippines.

9 (b) MILITARY EQUIPMENT.—Military equipment de10 scribed in subsection (a) should include—

11 (1) naval vessels, including amphibious landing

12 crafts, for patrol, search-and-rescue, and transport;

13 (2) F–5 aircraft and other aircraft that can as14 sist with reconnaissance, search-and-rescue, and re15 supply;

16 (3) attack, transport, and search-and-rescue

17 helicopters; and

18 (4) vehicles and other personnel equipment.

19 SEC. 105. ANNUAL MILITARY ASSISTANCE REPORT.

20 Section 655(b)(3) of the Foreign Assistance Act of

21 1961 (22 U.S.C. 2415(b)(3)) is amended by inserting be22 fore the period at the end the following: ‘‘, including those

23 defense articles that were exported’’.
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1 SEC. 106. REQUIREMENTS RELATING TO COUNTRY EXEMP2 TIONS FOR LICENSING OF DEFENSE ITEMS

3 FOR EXPORT TO FOREIGN COUNTRIES.

4 (a) REQUIREMENTS OF EXEMPTION.—Section 38 of

5 the Arms Export Control Act (22 U.S.C. 2778) is amend6 ed by adding at the end the following:

7 ‘‘(j) REQUIREMENTS RELATING TO COUNTRY EX8 EMPTIONS FOR LICENSING OF DEFENSE ITEMS FOR EX9 PORT TO FOREIGN COUNTRIES.—

10 ‘‘(1) REQUIREMENT FOR BILATERAL AGREE11 MENT.—

12 ‘‘(A) IN GENERAL.—The President may

13 utilize the regulatory or other authority pursu14 ant to this Act to exempt a foreign country

15 from the licensing requirements of this Act with

16 respect to exports of defense items only if the

17 United States Government has concluded an

18 agreement described in paragraph (2) with the

19 foreign country that is legally-binding as a mat20 ter of domestic and international law on both

21 the United States and that country.

22 ‘‘(B) EXCEPTION.—The requirement to

23 conclude a bilateral agreement in accordance

24 with subparagraph (A) shall not apply with re25 spect to an exemption for Canada from the li-
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1 censing requirements of this Act for the export

2 of defense items.

3 ‘‘(2) REQUIREMENTS OF BILATERAL AGREE4 MENT.—A bilateral agreement referred to paragraph

5 (1)—

6 ‘‘(A) shall, at a minimum, require the for7 eign country, as necessary, to revise its policies

8 and practices, and promulgate or enact nec9 essary modifications to its laws and regulations

10 to establish an export control regime that is at

11 least comparable to United States law, regula12 tion, and policy regarding—

13 ‘‘(i) handling of all United States-ori14 gin defense items exported to the foreign

15 country, including prior written United

16 States Government approval for any reex17 ports to third countries;

18 ‘‘(ii) end-use and retransfer control

19 commitments, including securing binding

20 end-use and retransfer control commit21 ments from all end-users, including such

22 documentation as is needed in order to en23 sure compliance and enforcement with re24 spect to such United States-origin defense

25 items;
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1 ‘‘(iii) establishment of a procedure

2 comparable to a ‘watchlist’ (if such a

3 watchlist does not exist) and full coopera4 tion with United States Government law

5 enforcement and intelligence agencies to

6 allow for sharing of export and import doc7 umentation and background information

8 on foreign businesses and individuals em9 ployed by or otherwise connected to those

10 businesses; and

11 ‘‘(iv) establishment of a list of con12 trolled defense items to ensure coverage of

13 those items to be exported under the ex14 emption; and

15 ‘‘(B) should, at a minimum, require the

16 foreign country, as necessary, to revise its poli17 cies and practices, and promulgate or enact

18 necessary modifications to its laws and regula19 tions to establish an export control regime that

20 is at least comparable to United States law,

21 regulation, and policy regarding—

22 ‘‘(i) controls on the export of tangible

23 or intangible technology, including via fax,

24 phone, and electronic media;
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1 ‘‘(ii) appropriate controls on unclassi2 fied information exported to foreign na3 tionals;

4 ‘‘(iii) controls on arms trafficking and

5 brokering; and

6 ‘‘(iv) violations and penalties of export

7 control laws.

8 ‘‘(3) ADVANCE NOTIFICATION.—Not less than

9 30 days before authorizing an exemption for a for10 eign country from the licensing requirements of this

11 Act for the export of defense items, the President

12 shall transmit to the Committee on International

13 Relations of the House of Representatives and the

14 Committee on Foreign Relations of the Senate a no15 tification that—

16 ‘‘(A) the United States has entered into a

17 bilateral agreement with that foreign country

18 satisfying all requirements set forth in para19 graph (2);

20 ‘‘(B) the foreign country has promulgated

21 or enacted all necessary modifications to its

22 laws and regulations to comply with its obliga23 tions under the bilateral agreement with the

24 United States; and
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1 ‘‘(C) confirms that the appropriate con2 gressional committees will continue to receive

3 notifications pursuant to the authorities, proce4 dures, and practices of section 36 of this Act

5 for defense exports to a foreign country to

6 which that section would apply and without re7 gard to any form of defense export licensing ex8 emption otherwise available for that country.

9 ‘‘(4) DEFINITIONS.—In this section:

10 ‘‘(A) DEFENSE ITEM.—The term ‘defense

11 item’ means defense articles, defense services,

12 and related technical data.

13 ‘‘(B) APPROPRIATE CONGRESSIONAL COM14 MITTEES.—The term ‘appropriate congressional

15 committees’ means—

16 ‘‘(i) the Committee on International

17 Relations and the Committee on Appro18 priations of the House of Representatives;

19 and

20 ‘‘(ii) the Committee on Foreign Rela21 tions and the Committee on Appropriations

22 of the Senate.’’.

23 (b) NOTIFICATION OF EXEMPTION.—Section 38(f) of

24 the Arms Export Control Act (22 U.S.C. 2778(f)) is

25 amended—
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1 (1) by inserting ‘‘(1)’’ after ‘‘(f)’’; and

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

3 ‘‘(2) The President may not authorize an exemption

4 for a foreign country from the licensing requirements of

5 this Act for the export of defense items under subsection

6 (j) or any other provision of this Act until 45 days after

7 the date on which the President has transmitted to the

8 Committee on International Relations of the House of

9 Representatives and the Committee on Foreign Relations

10 of the Senate a notification that includes—

11 ‘‘(A) a description of the scope of the exemp12 tion, including a detailed summary of the defense ar13 ticles, defense services, and related technical data

14 proposed to be exported under the exemption; and

15 ‘‘(B) a determination by the Attorney General

16 that the bilateral agreement requires sufficient docu17 mentation relating to the export of United States de18 fense articles, defense services, and related technical

19 data under an exemption which will be compiled and

20 maintained in order to facilitate law enforcement ef21 forts to detect, prevent, and prosecute criminal viola22 tions of any provision of this Act, including the ef23 forts on the part of countries and factions engaged

24 in international terrorism to illicitly acquire sophisti25 cated United States weaponry.’’.
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1 (c) NOTIFICATION RELATING TO EXPORT OF COM2 MERCIAL COMMUNICATIONS SATELLITE.—Section

3 36(c)(1) of the Arms Export Control Act (22 U.S.C.

4 2776(c)(1)) is amended in the first sentence by inserting

5 at the end before the period the following: ‘‘, except that

6 a certification shall not be required in the case of an appli7 cation for a license for export of a commercial communica8 tions satellite designated on the United States Munitions

9 List for launch from, and by nationals of, the United

10 States, or the territory of a member country of the North

11 Atlantic Treaty Organization (NATO), the Russian Fed12 eration, Ukraine, Australia, Japan, or New Zealand’’.

13 SEC. 107. REPORT ON GOVERNMENT-TO-GOVERNMENT

14 ARMS SALES END-USE MONITORING PRO15 GRAM.

16 Not later than 90 days after the date of the enact17 ment of this Act, the President shall prepare and transmit

18 to the Committee on International Relations and the Com19 mittee on Foreign Relations of the Senate a report that

20 contains a summary of the status of the efforts of the De21 fense Security Cooperation Agency to implement the End22 Use Monitoring Enhancement Plan relating to govern23 ment-to-government transfers of defense articles, defense

24 services, and related technologies.
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1 SEC. 108. WAIVER OF CERTAIN COSTS.

2 Notwithstanding any other provision of law, the

3 President may waive the requirement to impose an appro4 priate charge for a proportionate amount of any non5 recurring costs of research, development, and production

6 under section 21(e)(1)(B) of the Arms Export Control Act

7 (22 U.S.C. 2761(e)(1)(B)) for the November 1999 sale

8 of 5 UH–60L helicopters to the Republic of Colombia in

9 support of counternarcotics activities.

10 TITLE II—TRANSFERS OF NAVAL

11 VESSELS

12 SEC. 201. AUTHORITY TO TRANSFER NAVAL VESSELS TO

13 CERTAIN FOREIGN COUNTRIES.

14 (a) BRAZIL.—The President is authorized to transfer

15 to the Government of Brazil the ‘‘THOMASTON’’ class

16 dock landing ships ALAMO (LSD 33) and HERMITAGE

17 (LSD 34) and the ‘‘GARCIA’’ class frigates BRADLEY

18 (FF 1041), DAVIDSON (FF 1045), SAMPLE (FF

19 1048), and ALBERT DAVID (FF 1050). Such transfers

20 shall be on a grant basis under section 516 of the Foreign

21 Assistance Act of 1961 (22 U.S.C. 2321j).

22 (b) CHILE.—The President is authorized to transfer

23 to the Government of the Chile the ‘‘OLIVER HAZARD

24 PERRY’’ class guided missile frigates WADSWORTH

25 (FFG 9) and ESTOCIN (FFG 15). Such transfers shall

26 be on a combined lease-sale basis under sections 61 and
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1 21 of the Arms Export Control Act (22 U.S.C. 2796,

2 2761).

3 (c) GREECE.—The President is authorized to trans4 fer to the Government of Greece the ‘‘KNOX’’ class frig5 ates VREELAND (FF 1068) and TRIPPE (FF 1075).

6 Such transfers shall be on a grant basis under section 516

7 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j).

8 (d) TURKEY.—The President is authorized to trans9 fer to the Government of Turkey the ‘OLIVER HAZARD

10 PERRY‘ class guided missile frigates JOHN A MOORE

11 (FFG 19) and FLATLEY (FFG 21). Such transfers shall

12 be on a combined lease-sale basis under sections 61 and

13 21 of the Arms Export Control Act (22 U.S.C. 2796,

14 2761).

15 SEC. 202. INAPPLICABILITY OF AGGREGATE ANNUAL LIMI16 TATION ON VALUE OF TRANSFERRED EXCESS

17 DEFENSE ARTICLES.

18 In the case of the transfer of a naval vessel author19 ized under section 201 of this Act to be transferred on

20 a grant basis under section 516 of the Foreign Assistance

21 Act of 1961 (22 U.S.C. 2321j), the value of the vessel

22 transferred shall not be included for purposes of sub23 section (g) of that section in the aggregate value of excess

24 defense articles transferred to countries under that section

25 in any fiscal year.
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1 SEC. 203. COSTS OF TRANSFERS.

2 Any expense incurred by the United States in connec3 tion with a transfer authorized by this title shall be

4 charged to the recipient.

5 SEC. 204. CONDITIONS RELATING TO COMBINED LEASE6 SALE TRANSFERS.

7 A transfer of a vessel on a combined lease-sale basis

8 authorized by section 201 shall be made in accordance

9 with the following requirements:

10 (1) The President may initially transfer the ves11 sel by lease, with lease payments suspended for the

12 term of the lease, if the country entering into the

13 lease for the vessel simultaneously enters into a for14 eign military sales agreement for the transfer of title

15 to the vessel.

16 (2) The President may not deliver to the pur17 chasing country title to the vessel until the purchase

18 price of the vessel under such a foreign military

19 sales agreement is paid in full.

20 (3) Upon payment of the purchase price in full

21 under such a sales agreement and delivery of title to

22 the recipient country, the President shall terminate

23 the lease.

24 (4) If the purchasing country fails to make full

25 payment of the purchase price in accordance with

26 the sales agreement—
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1 (A) the sales agreement shall be imme2 diately terminated;

3 (B) the suspension of lease payments

4 under the lease shall be vacated; and

5 (C) the United States shall be entitled to

6 retain all funds received on or before the date

7 of the termination under the sales agreement,

8 up to the amount of lease payments due and

9 payable under the lease and all other costs re10 quired by the lease to be paid to that date.

11 (5) If a sales agreement is terminated pursuant

12 to paragraph (4), the United States shall not be re13 quired to pay any interest to the recipient country

14 on any amount paid to the United States by the re15 cipient country under the sales agreement and not

16 retained by the United States under the lease.

17 SEC. 205. FUNDING OF CERTAIN COSTS OF TRANSFERS.

18 There is authorized to be appropriated to the Defense

19 Vessels Transfer Program Account such funds as may be

20 necessary to cover the costs (as defined in section 502 of

21 the Congressional Budget Act of 1974 (2 U.S.C. 661a))

22 of the lease-sale transfers authorized by section 201.

23 Funds appropriated pursuant to the authorization of ap24 propriations under preceding sentence for the purpose de-
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1 scribed in such sentence may not be available for any other

2 purpose.

3 SEC. 206. REPAIR AND REFURBISHMENT IN UNITED STATES

4 SHIPYARDS.

5 To the maximum extent practicable, the President

6 shall require, as a condition of the transfer of a vessel

7 under section 201, that the country to which the vessel

8 is transferred have such repair or refurbishment of the

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

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

11 United States, including a United States Navy shipyard.

12 SEC. 207. SENSE OF THE CONGRESS REGARDING TRANSFER

13 OF NAVAL VESSELS ON A GRANT BASIS.

14 It is the sense of the Congress that naval vessels au15 thorized under section 201 of this Act to be transferred

16 to foreign countries on a grant basis under section 516

17 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j)

18 should be so transferred only if the United States receives

19 appropriate benefits from such countries for transferring

20 the vessel on a grant basis.

21 SEC. 208. EXPIRATION OF AUTHORITY.

22 The authority granted by section 201 of this Act shall

23 expire 2 years after the date of the enactment of this Act.

Passed the House of Representatives July 24, 2000.

Attest: JEFF TRANDAHL,

Clerk.