H. Con. Res. 288 Agreed to December 13, 2001

One Hundred Seventh Congress

of the

United States of America

AT THE FIRST SESSION

Begun and held at the City of Washington on Wednesday,

the third day of January, two thousand and one

Concurrent Resolution

Resolved by the House of Representatives (the Senate concurring), That in the enrollment of the bill (S. 1438) to authorize

appropriations for fiscal year 2002 for military activities of the

Department of Defense, for military construction, and for defense

activities of the Department of Energy, to prescribe personnel

strengths for such fiscal year for the Armed Forces, and for other

purposes, the Secretary of the Senate shall make the following

correction:

Strike section 1212 and insert the following:

SEC. 1212. EXTENSION OF AUTHORITY FOR INTERNATIONAL COOPERATIVE RESEARCH AND DEVELOPMENT PROJECTS.

(a) ELIGIBILITY OF FRIENDLY FOREIGN COUNTRIES.—Section

2350a of title 10, United States Code, is amended—

(1) in subsection (a)—

(A) by inserting ‘‘(1)’’ after ‘‘(a) AUTHORITY TO ENGAGE

IN COOPERATIVE R&D PROJECTS.—’;

(B) by striking ‘‘major allies of the United States or

NATO organizations’’ and inserting ‘‘countries or organizations referred to in paragraph (2)’’; and

(C) by adding at the end the following new paragraph:

‘‘(2) The countries and organizations with which the Secretary

may enter into a memorandum of agreement (or other formal agreement) under paragraph (1) are as follows:

‘‘(A) The North Atlantic Treaty Organization.

‘‘(B) A NATO organization.

‘‘(C) A member nation of the North Atlantic Treaty

Organization.

‘‘(D) A major non-NATO ally.

‘‘(E) Any other friendly foreign country.’’;

(2) in subsection (b)(1)—

(A) by striking ‘‘its major non-NATO allies’’ and

inserting ‘‘a country or organization referred to in subsection (a)(2)’’; and

(B) by striking ‘‘(NATO)’’;

(3) in subsection (d)—

(A) in paragraph (1), by striking ‘‘the major allies of

the United States’’ and inserting ‘‘countries and organizations referred to in subsection (a)(2)’’; and

(B) in paragraph (2)—

(i) by striking ‘‘major ally of the United States’’

and inserting ‘‘country or organization referred to in

subsection (a)(2)’’; and
H. Con. Res. 288—2

(ii) by striking ‘‘that ally’s contribution’’ and

inserting ‘‘the contribution of that country or organization’’;

(4) in subsection (e)(2)—

(A) in subparagraph (A), by striking ‘‘one or more of

the major allies of the United States’’ and inserting ‘‘any

country or organization referred to in subsection (a)(2)’’;

(B) in subparagraph (B), by striking ‘‘major allies of

the United States or NATO organizations’’ and inserting

‘‘countries and organizations referred to in subsection

(a)(2)’’;

(C) in subparagraph (C), by striking ‘‘major allies of

the United States’’ and inserting ‘‘countries and organizations referred to in subsection (a)(2)’’; and

(D) in subparagraph (D), by striking ‘‘major allies of

the United States’’ and inserting ‘‘countries and organizations referred to in subsection (a)(2)’’;

(5) paragraphs (1)(A) and (4)(A) of subsection (g), by

striking ‘‘major allies of the United States and other friendly

foreign countries’’ and inserting ‘‘countries referred to in subsection (a)(2)’’;

(6) in subsection (h), by striking ‘‘major allies of the United

States’’ and inserting ‘‘member nations of the North Atlantic

Treaty Organization, major non-NATO allies, and other friendly

foreign countries’’; and

(7) in subsection (i)—

(A) in paragraph (1), by striking ‘‘major allies of the

United States or NATO organizations’’ and inserting ‘‘countries and organizations referred to in subsection (a)(2)’’;

(B) by striking paragraph (2); and

(C) by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively.

(b) NOTICE-AND-WAIT REQUIREMENT.—Subsection (a) of such

section is further amended by adding at the end the following

new paragraph:

‘‘(3) If such a memorandum of understanding (or other formal

agreement) is with a country referred to in subparagraph (E) of

paragraph (2), such memorandum (or agreement) may go into effect

only after the Secretary submits to the Committees on Armed

Services and on Foreign Relations of the Senate and to the Committees on Armed Services and on International Relations of the House

of Representatives a report with respect to the proposed memorandum (or agreement) and a period of 30 days has passed after

the report has been submitted.’’.

(c) DELEGATION OF AUTHORITY TO DETERMINE ELIGIBILITY OF

PROJECTS.—Subsection (b)(2) of such section is amended by striking

‘‘to the Deputy Secretary of Defense’’ and all that follows through

the period at the end and inserting ‘‘to the Deputy Secretary of

Defense and to one other official of the Department of Defense.’’.

(d) REVISION OF REQUIREMENT FOR ANNUAL REPORT ON

ELIGIBLE COUNTRIES.—Subsection (f)(2) of such section is amended

to read as follows: ‘‘(2) Not later than January 1 of each year, the Secretary

of Defense shall submit to the Committees on Armed Services

and on Foreign Relations of the Senate and to the Committees

on Armed Services and on International Relations of the House

of Representatives a report specifying—
H. Con. Res. 288—3

‘‘(A) the countries that are eligible to participate in a

cooperative project agreement under this section; and

‘‘(B) the criteria used to determine the eligibility of such

countries.’’.

(e) CONFORMING AMENDMENTS.—(1) The heading of such section

is amended to read as follows:

‘‘§ 2350a. Cooperative research and development agreements:

NATO organizations; allied and friendly foreign

countries’’.

(2) The item relating to such section in the table of sections

at the beginning of subchapter II of chapter 138 of title 10, United

States Code, is amended to read as follows:

‘‘2350a. Cooperative research and development agreements: NATO organizations; allied and friendly foreign countries.’’.

SEC. 1213. COOPERATIVE AGREEMENTS WITH FOREIGN COUNTRIES

AND INTERNATIONAL ORGANIZATIONS FOR RECIPROCAL

USE OF TEST FACILITIES.

(a) AUTHORITY.—Subchapter II of chapter 138 of title 10, United

States Code, is amended by adding at the end the following new

section:

‘‘§ 2350l. Cooperative agreements for reciprocal use of test

facilities: foreign countries and international

organizations

‘‘(a) AUTHORITY.—The Secretary of Defense, with the concurrence of the Secretary of State, may enter into a memorandum

of understanding (or other formal agreement) with a foreign country

or international organization to provide for the testing, on a reciprocal basis, of defense equipment (1) by the United States using

test facilities of that country or organization, and (2) by that country

or organization using test facilities of the United States.

‘‘(b) PAYMENT OF COSTS.—A memorandum or other agreement

under subsection (a) shall provide that, when a party to the agreement uses a test facility of another party to the agreement, the

party using the test facility is charged by the party providing

the test facility in accordance with the following principles:

‘‘(1) The user party shall be charged the amount equal

to the direct costs incurred by the provider party in furnishing

test and evaluation services by the providing party’s officers,

employees, or governmental agencies.

‘‘(2) The user party may also be charged indirect costs

relating to the use of the test facility, but only to the extent

specified in the memorandum or other agreement.

‘‘(c) DETERMINATION OF INDIRECT COSTS; DELEGATION OF

AUTHORITY.—(1) The Secretary of Defense shall determine the

appropriateness of the amount of indirect costs charged by the

United States pursuant to subsection (b)(2).

(2) The Secretary may delegate the authority under paragraph

(1) only to the Deputy Secretary of Defense and to one other

official of the Department of Defense.

‘‘(d) RETENTION OF FUNDS COLLECTED BY THE UNITED STATES.—

Amounts collected by the United States from a party using a

test facility of the United States pursuant to a memorandum or
H. Con. Res. 288—4

other agreement under this section shall be credited to the appropriation accounts from which the costs incurred by the United

States in providing such test facility were paid.

‘‘(e) DEFINITIONS.—In this section:

‘‘(1) The term ‘direct cost’, with respect to the use of a

test facility pursuant to a memorandum or other agreement

under subsection (a)—

‘‘(A) means any item of cost that is easily and readily

identified to a specific unit of work or output within the

test facility where the use occurred, that would not have

been incurred if such use had not occurred; and

‘‘(B) may include costs of labor, materials, facilities,

utilities, equipment, supplies, and any other resources of

the test facility that are consumed or damaged in connection with—

‘‘(i) the use; or

‘‘(ii) the maintenance of the test facility for purposes of the use.

‘‘(2) The term ‘indirect cost’, with respect to the use of

a test facility pursuant to a memorandum or other agreement

under subsection (a)—

‘‘(A) means any item of cost that is not easily and

readily identified to a specific unit of work or output within

the test facility where the use occurred; and

‘‘(B) may include general and administrative expenses

for such activities as supporting base operations, manufacturing, supervision, procurement of office supplies, and

utilities that are accumulated costs allocated among several

users.

‘‘(3) The term ‘test facility’ means a range or other facility

at which testing of defense equipment may be carried out.’’.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such subchapter is amended by adding at the end the

following new item:

‘‘2350l. Cooperative agreements for reciprocal use of test facilities: foreign countries

and international organizations.’’.

SEC. 1214. SENSE OF CONGRESS ON ALLIED DEFENSE

BURDENSHARING.

It is the sense of Congress that—

(1) the efforts of the President to increase defense

burdensharing by allied and friendly nations deserve strong

support; and

(2) host nation support agreements with those nations in

which United States military personnel are assigned to permanent duty ashore should be negotiated consistent with section

1221(a)(1) of the National Defense Authorization Act for Fiscal

Year 1998 (Public Law 105–85; 50 U.S.C. 1541(a)(1)), which

sets forth a goal of obtaining from any such host nation financial

contributions that amount to 75 percent of the nonpersonnel

costs incurred by the United States Government for stationing

United States military personnel in that nation.
H. Con. Res. 288—5

Subtitle C—Reports

SEC. 1221. REPORT ON SIGNIFICANT SALES AND TRANSFERS OF MILITARY HARDWARE, EXPERTISE, AND TECHNOLOGY TO

THE PEOPLE’S REPUBLIC OF CHINA.

Section 1202 of the National Defense Authorization Act for

Fiscal Year 2000 (Public Law 106–65; 113 Stat. 781; 10 U.S.C.

113 note) is amended by adding at the end the following new

subsection:

‘‘(d) REPORT ON SIGNIFICANT SALES AND TRANSFERS TO CHINA.—

(1) The report to be submitted under this section not later than

March 1, 2002, shall include in a separate section a report

describing any significant sale or transfer of military hardware,

expertise, and technology to the People’s Republic of China. The

report shall set forth the history of such sales and transfers since

1995, forecast possible future sales and transfers, and address

the implications of those sales and transfers for the security of

the United States and its friends and allies in Asia.

‘‘(2) The report shall include analysis and forecasts of the

following matters related to military cooperation between selling

states and the People’s Republic of China:

‘‘(A) The extent in each selling state of government knowledge, cooperation, or condoning of sales or transfers of military

hardware, expertise, or technology to the People’s Republic

of China.

‘‘(B) An itemization of significant sales and transfers of

military hardware, expertise, or technology from each selling

state to the People’s Republic of China that have taken place

since 1995, with a particular focus on command, control,

communications, and intelligence systems.

‘‘(C) Significant assistance by any selling state to key

research and development programs of China, including programs for development of weapons of mass destruction and

delivery vehicles for such weapons, programs for development

of advanced conventional weapons, and programs for development of unconventional weapons.

‘‘(D) The extent to which arms sales by any selling state

to the People’s Republic of China are a source of funds for

military research and development or procurement programs

in the selling state.

‘‘(3) The report under paragraph (1) shall include, with respect

to each area of analysis and forecasts specified in paragraph (2)—

‘‘(A) an assessment of the military effects of such sales

or transfers to entities in the People’s Republic of China;

‘‘(B) an assessment of the ability of the People’s Liberation

Army to assimilate such sales or transfers, mass produce new

equipment, or develop doctrine for use; and

‘‘(C) the potential threat of developments related to such

effects on the security interests of the United States and its

friends and allies in Asia.’’.

SEC. 1222. REPEAL OF REQUIREMENT FOR REPORTING TO CONGRESS

ON MILITARY DEPLOYMENTS TO HAITI.

Section 1232(b) of the National Defense Authorization Act for

Fiscal Year 2000 (Public Law 106–65; 113 Stat. 788; 50 U.S.C.

1541 note) is repealed.
H. Con. Res. 288—6

SEC. 1223. REPORT BY COMPTROLLER GENERAL ON PROVISION OF

DEFENSE ARTICLES, SERVICES, AND MILITARY EDUCATION AND TRAINING TO FOREIGN COUNTRIES AND

INTERNATIONAL ORGANIZATIONS.

(a) STUDY.—The Comptroller General shall conduct a study

of the following:

(1) The benefits derived by each foreign country or international organization from the receipt of defense articles,

defense services, or military education and training provided

after December 31, 1989, pursuant to the drawdown of such

articles, services, or education and training from the stocks

of the Department of Defense under section 506, 516, or 552

of the Foreign Assistance Act of 1961 (22 U.S.C. 2318, 2321j,

or 2348a) or any other provision of law.

(2) Any benefits derived by the United States from the

provision of defense articles, defense services, and military

education and training described in paragraph (1).

(3) The effect on the readiness of the Armed Forces as

a result of the provision by the United States of defense articles,

defense services, and military education and training described

in paragraph (1).

(4) The cost to the Department of Defense with respect

to the provision of defense articles, defense services, and military education and training described in paragraph (1).

(b) REPORTS.—(1) Not later than April 15, 2002, the Comptroller

General shall submit to Congress an interim report containing

the results to that date of the study conducted under subsection

(a).

(2) Not later than August 1, 2002, the Comptroller General

shall submit to Congress a final report containing the results of

the study conducted under subsection (a).

Attest:

Clerk of the House of Representatives.

Attest:

Secretary of the Senate.