I

106TH CONGRESS

2D SESSION H. R. 4919

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.

IN THE HOUSE OF REPRESENTATIVES

JULY 24, 2000

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

which was referred to the Committee on International Relations

JULY 24, 2000

Committee on International Relations discharged; considered under suspension

of the rules and passed

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. SHORT TITLE.

4 This Act may be cited as the ‘‘Defense and Security

5 Assistance Act of 2000’’.
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1 TITLE I—SECURITY ASSISTANCE

2 SEC. 101. ADDITIONS TO UNITED STATES WAR RESERVE

3 STOCKPILES FOR ALLIES.

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

5 1961 (22 U.S.C. 2321h(b)(2)) is amended to read as fol6 lows:

7 ‘‘(2)(A) The value of such additions to stock8 piles of defense articles in foreign countries shall not

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

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

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

12 may be made available for stockpiles in the Republic

13 of Korea.’’.

14 SEC. 102. TRANSFER OF CERTAIN OBSOLETE OR SURPLUS

15 DEFENSE ARTICLES IN THE WAR RESERVE

16 STOCKPILES FOR ALLIES TO ISRAEL.

17 (a) TRANSFERS TO ISRAEL.—

18 (1) AUTHORITY.—Notwithstanding section 514

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

20 2321h), the President is authorized to transfer to

21 Israel, in return for concessions to be negotiated by

22 the Secretary of Defense, with the concurrence of

23 the Secretary of State, any or all of the items de24 scribed in paragraph (2).
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1 (2) ITEMS COVERED.—The items referred to in

2 paragraph (1) are munitions, equipment, and mate3 rial such as armor, artillery, automatic weapons am4 munition, and missiles that—

5 (A) are obsolete or surplus items;

6 (B) are in the inventory of the Department

7 of Defense;

8 (C) are intended for use as reserve stocks

9 for Israel; and

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

11 Act, are located in a stockpile in Israel.

12 (b) CONCESSIONS.—The value of concessions nego13 tiated pursuant to subsection (a) shall be at least equal

14 to the fair market value of the items transferred. The con15 cessions may include cash compensation, services, waiver

16 of charges otherwise payable by the United States, and

17 other items of value.

18 (c) ADVANCE NOTIFICATION OF TRANSFER.—Not

19 less than 30 days before making a transfer under the au20 thority of this section, the President shall transmit to the

21 Committee on Foreign Relations of the Senate, and the

22 Committee on International Relations of the House of

23 Representatives a notification of the proposed transfer.

24 The notification shall identify the items to be transferred

25 and the concessions to be received.
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1 (d) EXPIRATION OF AUTHORITY.—No transfer may

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

3 the date of enactment of this Act.

4 SEC. 103. EXCESS DEFENSE ARTICLES FOR MONGOLIA.

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

6 Notwithstanding section 516(e) of the Foreign Assistance

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

8 years 2000 and 2001, funds available to the Department

9 of Defense may be expended for crating, packing, han10 dling, and transportation of excess defense articles trans11 ferred under the authority of section 516 of that Act to

12 Mongolia.

13 (b) CONTENT OF CONGRESSIONAL NOTIFICATION.—

14 Each notification required to be submitted under section

15 516(f) of the Foreign Assistance Act of 1961 (22 U.S.C.

16 2321j(f)) with respect to a proposed transfer of a defense

17 article described in subsection (a) shall include an esti18 mate of the amount of funds to be expended under sub19 section (a) with respect to that transfer.

20 SEC. 104. SENSE OF CONGRESS RELATING TO MILITARY

21 EQUIPMENT FOR THE PHILIPPINES.

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

23 the United States Government should work with the Gov24 ernment of the Republic of the Philippines to enable that

25 Government to procure military equipment that can be
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1 used to upgrade the capabilities and to improve the quality

2 of life of the armed forces of the Philippines.

3 (b) MILITARY EQUIPMENT.—Military equipment de4 scribed in subsection (a) should include—

5 (1) naval vessels, including amphibious landing

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

7 (2) F–5 aircraft and other aircraft that can as8 sist with reconnaissance, search-and-rescue, and re9 supply;

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

11 helicopters; and

12 (4) vehicles and other personnel equipment.

13 SEC. 105. ANNUAL MILITARY ASSISTANCE REPORT.

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

15 1961 (22 U.S.C. 2415(b)(3)) is amended by inserting be16 fore the period at the end the following: ‘‘, including those

17 defense articles that were exported’’.

18 SEC. 106. REQUIREMENTS RELATING TO COUNTRY EXEMP19 TIONS FOR LICENSING OF DEFENSE ITEMS

20 FOR EXPORT TO FOREIGN COUNTRIES.

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

22 the Arms Export Control Act (22 U.S.C. 2778) is amend23 ed by adding at the end the following:
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1 ‘‘(j) REQUIREMENTS RELATING TO COUNTRY EX2 EMPTIONS FOR LICENSING OF DEFENSE ITEMS FOR EX3 PORT TO FOREIGN COUNTRIES.—

4 ‘‘(1) REQUIREMENT FOR BILATERAL AGREE5 MENT.—

6 ‘‘(A) IN GENERAL.—The President may

7 utilize the regulatory or other authority pursu8 ant to this Act to exempt a foreign country

9 from the licensing requirements of this Act with

10 respect to exports of defense items only if the

11 United States Government has concluded an

12 agreement described in paragraph (2) with the

13 foreign country that is legally-binding as a mat14 ter of domestic and international law on both

15 the United States and that country.

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

17 conclude a bilateral agreement in accordance

18 with subparagraph (A) shall not apply with re19 spect to an exemption for Canada from the li20 censing requirements of this Act for the export

21 of defense items.

22 ‘‘(2) REQUIREMENTS OF BILATERAL AGREE23 MENT.—A bilateral agreement referred to paragraph

24 (1)—
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1 ‘‘(A) shall, at a minimum, require the for2 eign country, as necessary, to revise its policies

3 and practices, and promulgate or enact nec4 essary modifications to its laws and regulations

5 to establish an export control regime that is at

6 least comparable to United States law, regula7 tion, and policy regarding—

8 ‘‘(i) handling of all United States-ori9 gin defense items exported to the foreign

10 country, including prior written United

11 States Government approval for any reex12 ports to third countries;

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

14 commitments, including securing binding

15 end-use and retransfer control commit16 ments from all end-users, including such

17 documentation as is needed in order to en18 sure compliance and enforcement with re19 spect to such United States-origin defense

20 items;

21 ‘‘(iii) establishment of a procedure

22 comparable to a ‘watchlist’ (if such a

23 watchlist does not exist) and full coopera24 tion with United States Government law

25 enforcement and intelligence agencies to
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1 allow for sharing of export and import doc2 umentation and background information

3 on foreign businesses and individuals em4 ployed by or otherwise connected to those

5 businesses; and

6 ‘‘(iv) establishment of a list of con7 trolled defense items to ensure coverage of

8 those items to be exported under the ex9 emption; and

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

11 foreign country, as necessary, to revise its poli12 cies and practices, and promulgate or enact

13 necessary modifications to its laws and regula14 tions to establish an export control regime that

15 is at least comparable to United States law,

16 regulation, and policy regarding—

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

18 or intangible technology, including via fax,

19 phone, and electronic media;

20 ‘‘(ii) appropriate controls on unclassi21 fied information exported to foreign na22 tionals;

23 ‘‘(iii) controls on arms trafficking and

24 brokering; and
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1 ‘‘(iv) violations and penalties of export

2 control laws.

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

4 30 days before authorizing an exemption for a for5 eign country from the licensing requirements of this

6 Act for the export of defense items, the President

7 shall transmit to the Committee on International

8 Relations of the House of Representatives and the

9 Committee on Foreign Relations of the Senate a no10 tification that—

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

12 bilateral agreement with that foreign country

13 satisfying all requirements set forth in para14 graph (2);

15 ‘‘(B) the foreign country has promulgated

16 or enacted all necessary modifications to its

17 laws and regulations to comply with its obliga18 tions under the bilateral agreement with the

19 United States; and

20 ‘‘(C) confirms that the appropriate con21 gressional committees will continue to receive

22 notifications pursuant to the authorities, proce23 dures, and practices of section 36 of this Act

24 for defense exports to a foreign country to

25 which that section would apply and without re-
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1 gard to any form of defense export licensing ex2 emption otherwise available for that country.

3 ‘‘(4) DEFINITIONS.—In this section:

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

5 item’ means defense articles, defense services,

6 and related technical data.

7 ‘‘(B) APPROPRIATE CONGRESSIONAL COM8 MITTEES.—The term ‘appropriate congressional

9 committees’ means—

10 ‘‘(i) the Committee on International

11 Relations and the Committee on Appro12 priations of the House of Representatives;

13 and

14 ‘‘(ii) the Committee on Foreign Rela15 tions and the Committee on Appropriations

16 of the Senate.’’.

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

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

19 amended—

20 (1) by inserting ‘‘(1)’’ after ‘‘(f)’’; and

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

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

23 for a foreign country from the licensing requirements of

24 this Act for the export of defense items under subsection

25 (j) or any other provision of this Act until 45 days after
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1 the date on which the President has transmitted to the

2 Committee on International Relations of the House of

3 Representatives and the Committee on Foreign Relations

4 of the Senate a notification that includes—

5 ‘‘(A) a description of the scope of the exemp6 tion, including a detailed summary of the defense ar7 ticles, defense services, and related technical data

8 proposed to be exported under the exemption; and

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

10 that the bilateral agreement requires sufficient docu11 mentation relating to the export of United States de12 fense articles, defense services, and related technical

13 data under an exemption which will be compiled and

14 maintained in order to facilitate law enforcement ef15 forts to detect, prevent, and prosecute criminal viola16 tions of any provision of this Act, including the ef17 forts on the part of countries and factions engaged

18 in international terrorism to illicitly acquire sophisti19 cated United States weaponry.’’.

20 (c) NOTIFICATION RELATING TO EXPORT OF COM21 MERCIAL COMMUNICATIONS SATELLITE.—Section

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

23 2776(c)(1)) is amended in the first sentence by inserting

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

25 a certification shall not be required in the case of an appli-
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1 cation for a license for export of a commercial communica2 tions satellite designated on the United States Munitions

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

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

5 Atlantic Treaty Organization (NATO), the Russian Fed6 eration, Ukraine, Australia, Japan, or New Zealand’’.

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

8 ARMS SALES END-USE MONITORING PRO9 GRAM.

10 Not later than 90 days after the date of the enact11 ment of this Act, the President shall prepare and transmit

12 to the Committee on International Relations and the Com13 mittee on Foreign Relations of the Senate a report that

14 contains a summary of the status of the efforts of the De15 fense Security Cooperation Agency to implement the End16 Use Monitoring Enhancement Plan relating to govern17 ment-to-government transfers of defense articles, defense

18 services, and related technologies.

19 SEC. 108. WAIVER OF CERTAIN COSTS.

20 Notwithstanding any other provision of law, the

21 President may waive the requirement to impose an appro22 priate charge for a proportionate amount of any non23 recurring costs of research, development, and production

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

25 (22 U.S.C. 2761(e)(1)(B)) for the November 1999 sale
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1 of 5 UH–60L helicopters to the Republic of Colombia in

2 support of counternarcotics activities.

3 TITLE II—TRANSFERS OF NAVAL

4 VESSELS

5 SEC. 201. AUTHORITY TO TRANSFER NAVAL VESSELS TO

6 CERTAIN FOREIGN COUNTRIES.

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

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

9 dock landing ships ALAMO (LSD 33) and HERMITAGE

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

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

12 1048), and ALBERT DAVID (FF 1050). Such transfers

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

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

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

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

17 PERRY’’ class guided missile frigates WADSWORTH

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

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

20 21 of the Arms Export Control Act (22 U.S.C. 2796,

21 2761).

22 (c) GREECE.—The President is authorized to trans23 fer to the Government of Greece the ‘‘KNOX’’ class frig24 ates VREELAND (FF 1068) and TRIPPE (FF 1075).
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1 Such transfers shall be on a grant basis under section 516

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

3 (d) TURKEY.—The President is authorized to trans4 fer to the Government of Turkey the ‘‘OLIVER HAZARD

5 PERRY’’ class guided missile frigates JOHN A MOORE

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

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

8 21 of the Arms Export Control Act (22 U.S.C. 2796,

9 2761).

10 SEC. 202. INAPPLICABILITY OF AGGREGATE ANNUAL LIMI11 TATION ON VALUE OF TRANSFERRED EXCESS

12 DEFENSE ARTICLES.

13 In the case of the transfer of a naval vessel author14 ized under section 201 of this Act to be transferred on

15 a grant basis under section 516 of the Foreign Assistance

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

17 transferred shall not be included for purposes of sub18 section (g) of that section in the aggregate value of excess

19 defense articles transferred to countries under that section

20 in any fiscal year.

21 SEC. 203. COSTS OF TRANSFERS.

22 Any expense incurred by the United States in connec23 tion with a transfer authorized by this title shall be

24 charged to the recipient.
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1 SEC. 204. CONDITIONS RELATING TO COMBINED LEASE2 SALE TRANSFERS.

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

4 authorized by section 201 shall be made in accordance

5 with the following requirements:

6 (1) The President may initially transfer the ves7 sel by lease, with lease payments suspended for the

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

9 lease for the vessel simultaneously enters into a for10 eign military sales agreement for the transfer of title

11 to the vessel.

12 (2) The President may not deliver to the pur13 chasing country title to the vessel until the purchase

14 price of the vessel under such a foreign military

15 sales agreement is paid in full.

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

17 under such a sales agreement and delivery of title to

18 the recipient country, the President shall terminate

19 the lease.

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

21 payment of the purchase price in accordance with

22 the sales agreement—

23 (A) the sales agreement shall be imme24 diately terminated;

25 (B) the suspension of lease payments

26 under the lease shall be vacated; and
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1 (C) the United States shall be entitled to

2 retain all funds received on or before the date

3 of the termination under the sales agreement,

4 up to the amount of lease payments due and

5 payable under the lease and all other costs re6 quired by the lease to be paid to that date.

7 (5) If a sales agreement is terminated pursuant

8 to paragraph (4), the United States shall not be re9 quired to pay any interest to the recipient country

10 on any amount paid to the United States by the re11 cipient country under the sales agreement and not

12 retained by the United States under the lease.

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

14 There is authorized to be appropriated to the Defense

15 Vessels Transfer Program Account such funds as may be

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

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

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

19 Funds appropriated pursuant to the authorization of ap20 propriations under preceding sentence for the purpose de21 scribed in such sentence may not be available for any other

22 purpose.
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1 SEC. 206. REPAIR AND REFURBISHMENT IN UNITED STATES

2 SHIPYARDS.

3 To the maximum extent practicable, the President

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

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

6 is transferred have such repair or refurbishment of the

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

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

9 United States, including a United States Navy shipyard.

10 SEC. 207. SENSE OF CONGRESS REGARDING TRANSFER OF

11 NAVAL VESSELS ON A GRANT BASIS.

12 It is the sense of Congress that naval vessels author13 ized under section 201 of this Act to be transferred to

14 foreign countries on a grant basis under section 516 of

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

16 should be so transferred only if the United States receives

17 appropriate benefits from such countries for transferring

18 the vessel on a grant basis.

19 SEC. 208. EXPIRATION OF AUTHORITY.

20 The authority granted by section 201 of this Act shall

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

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