II

Calendar No. 696

106TH CONGRESS

2D SESSION S. 2901

[Report No. 106–351]

To authorize appropriations to carry out security assistance for fiscal year

2001, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JULY 20, 2000

Mr. HELMS from the Committee on Foreign Relations, reported the following

original bill; which was read twice and placed on the calendar

A BILL

To authorize appropriations to carry out security assistance

for fiscal year 2001, 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 ‘‘Security Assistance

5 Act of 2000’’.
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1 TITLE I—MILITARY AND

2 RELATED ASSISTANCE

3 Subtitle A—Foreign Military

4 Financing Program

5 SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

6 There are authorized to be appropriated for grant as7 sistance under section 23 of the Arms Export Control Act

8 (22 U.S.C. 2763) and for the subsidy cost, as defined in

9 section 502(5) of the Federal Credit Reform Act of 1990,

10 of direct loans under such section for fiscal year 2001,

11 the total amount of $3,627,000,000.

12 Subtitle B—Other Assistance

13 SEC. 111. DEFENSE DRAWDOWN SPECIAL AUTHORITIES.

14 (a) EMERGENCY DRAWDOWN.—Section 506(a)(1) of

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

16 2318(a)(1)) is amended by striking ‘‘$100,000,000’’ and

17 inserting ‘‘$150,000,000’’.

18 (b) ADDITIONAL DRAWDOWN.—Section

19 506(a)(2)(A)(i) of such Act (22 U.S.C. 2318(a)(2)(A)(i))

20 is amended—

21 (1) by striking ‘‘or’’ the first place it appears;

22 and

23 (2) by striking subclause (III) and inserting the

24 following:
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1 ‘‘(III) chapter 8 of part II (relat2 ing to antiterrorism assistance);

3 ‘‘(IV) chapter 9 of part II (relat4 ing to nonproliferation assistance); or

5 ‘‘(V) the Migration and Refugee

6 Assistance Act of 1962; or’’.

7 SEC. 112. INCREASED TRANSPORT AUTHORITY.

8 Section 516(e)(2)(C) of the Foreign Assistance Act

9 of 1961 (22 U.S.C. 23321j(e)(2)(C)) is amended by strik10 ing ‘‘25,000’’ and inserting ‘‘50,000’’.

11 TITLE II—INTERNATIONAL MILI12 TARY EDUCATION AND

13 TRAINING

14 SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

15 There are authorized to be appropriated $65,000,000

16 for fiscal year 2001 to carry out chapter 5 of part II of

17 the Foreign Assistance Act of 1961 (22 U.S.C. 2347 et

18 seq.).

19 SEC. 202. ADDITIONAL REQUIREMENTS RELATING TO

20 INTERNATIONAL MILITARY EDUCATION AND

21 TRAINING.

22 Chapter 5 of part II of the Foreign Assistance Act

23 of 1961 (22 U.S.C. 2347 et seq.) is amended by adding

24 at the end the following:
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1 ‘‘SEC. 547. CONSULTATION REQUIREMENT.

2 ‘‘The selection of foreign personnel for training under

3 this chapter shall be made in consultation with the United

4 States defense attache to the relevant country.

5 ‘‘SEC. 548. RECORDS REGARDING FOREIGN PARTICIPANTS.

6 ‘‘In order to contribute most effectively to the devel7 opment of military professionalism in foreign countries,

8 the Secretary of Defense shall develop and maintain a

9 database containing records on each foreign military or

10 defense ministry civilian participant in education and

11 training activities conducted under this chapter after De12 cember 31, 2000. This record shall include the type of in13 struction received, the dates of such instruction, whether

14 such instruction was completed successfully, and, to the

15 extent practicable, a record of the person’s subsequent

16 military or defense ministry career and current position

17 and location.’’.

18 TITLE III—NONPROLIFERATION

19 AND EXPORT CONTROL AS20 SISTANCE

21 SEC. 301. NONPROLIFERATION AND EXPORT CONTROL AS22 SISTANCE.

23 Part II of the Foreign Assistance Act of 1961 (22

24 U.S.C. 2301 et seq.) is amended by adding at the end

25 the following new chapter:
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1 ‘‘CHAPTER 9—NONPROLIFERATION AND

2 EXPORT CONTROL ASSISTANCE

3 ‘‘SEC. 581. GENERAL AUTHORITY.

4 ‘‘Notwithstanding any other provision of law that re5 stricts assistance to foreign countries (other than sections

6 502B and 620A of this Act), the President is authorized

7 to furnish, on such terms and conditions as the President

8 may determine, assistance to foreign countries in order to

9 enhance the ability of such countries to halt the prolifera10 tion of nuclear, chemical, and biological weapons, and ad11 vanced conventional weaponry. Such assistance may in12 clude training services and the provision of equipment and

13 other commodities related to the detection, deterrence,

14 monitoring, interdiction, and prevention or countering of

15 proliferation, the establishment of effective nonprolifera16 tion laws and regulations, and the apprehension of those

17 individuals involved in acts of proliferation of such weap18 ons.

19 ‘‘SEC. 582. PURPOSES.

20 ‘‘Activities conducted under this chapter shall be

21 designed—

22 ‘‘(1) to enhance the nonproliferation and export

23 control capabilities of friendly countries by providing

24 training and equipment to detect, deter, monitor,

25 interdict, and counter proliferation;
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1 ‘‘(2) to strengthen the bilateral ties of the

2 United States with friendly governments by offering

3 concrete assistance in this area of vital national se4 curity interest; and

5 ‘‘(3) to accomplish the activities and objectives

6 set forth in sections 503 and 504 of the FREEDOM

7 Support Act (Public Law 102–511).

8 ‘‘SEC. 583. TRANSIT INTERDICTION.

9 ‘‘(a) ALLOCATION OF FUNDS.—In providing assist10 ance under this chapter, the President should ensure that

11 not less than one-quarter of the total of such assistance

12 is expended for the purpose of enhancing the capabilities

13 of friendly countries to detect and interdict proliferation14 related shipments of cargo that originate from, and are

15 destined for, other countries.

16 ‘‘(b) PRIORITY TO CERTAIN COUNTRIES.—Priority

17 shall be given in the apportionment of the assistance de18 scribed under subsection (a) to any friendly country that

19 has been determined by the Secretary of State to be a

20 country frequently transited by proliferation-related ship21 ments of cargo.

22 ‘‘SEC. 584. LIMITATIONS.

23 ‘‘The limitations contained in section 573 (a) and (d)

24 of this Act shall apply to this chapter.
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1 ‘‘SEC. 585. AUTHORIZATION OF APPROPRIATIONS.

2 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There

3 is authorized to be appropriated to the President to carry

4 out this chapter $129,000,000 for the fiscal year 2001.

5 ‘‘(b) AVAILABILITY OF FUNDS.—Funds made avail6 able under subsection (a) may be used notwithstanding

7 any other provision of law (other than section 502B or

8 620A) and shall remain available until expended.’’.

9 SEC. 302. NONPROLIFERATION AND EXPORT CONTROL

10 TRAINING IN THE UNITED STATES.

11 Of the amount made available for fiscal year 2001

12 under chapter 9 of part II of the Foreign Assistance Act

13 of 1961, as added by section 301, $2,000,000 is author14 ized to be available for the purpose of training and edu15 cation of personnel from friendly countries in the United

16 States.

17 SEC. 303. SCIENCE AND TECHNOLOGY CENTERS.

18 (a) AUTHORIZATION OF FUNDS.—Of the amounts

19 made available for fiscal year 2001 under chapter 9 of

20 part II of the Foreign Assistance Act of 1961, as added

21 by section 301, $59,000,000 is authorized to be available

22 for each such year for science and technology centers in

23 the independent states of the former Soviet Union.

24 (b) SENSE OF THE SENATE.—It is the sense of the

25 Senate, taking into account the obligation contained in

26 section 1132 of Public Law 106–113, that the practice
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1 of auditing entities receiving funds authorized under this

2 section should be significantly expanded and that the bur3 den of supplying auditors should be spread equitably with4 in the United States Government.

5 SEC. 304. TRIAL TRANSIT PROGRAM.

6 (a) ALLOCATION OF FUNDS.—Of the amount made

7 available for fiscal year 2001 under chapter 9 of the For8 eign Assistance Act of 1961, as added by section 301,

9 $5,000,000 is authorized to be available to establish a

10 static cargo x-ray facility in Malta, if the Secretary of

11 State first certifies to the appropriate committees of Con12 gress that the Government of Malta has provided adequate

13 assurances that such a facility will be utilized in connec14 tion with random cargo inspections by Maltese customs

15 officials of container traffic transiting through the Malta

16 Freeport.

17 (b) REQUIREMENT OF WRITTEN ASSESSMENT.—In

18 the event that a facility is established in Malta pursuant

19 to subsection (a), the Secretary of State shall submit a

20 written assessment to the appropriate committees of Con21 gress not later than 270 days after such a facility com22 mences operation detailing—

23 (1) statistics on utilization of the facility by

24 Malta;
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1 (2) the contribution made by the facility to

2 United States nonproliferation and export control

3 objectives; and

4 (3) the feasibility of establishing comparable fa5 cilities in other countries identified by the Secretary

6 of State pursuant to section 583 of the Foreign As7 sistance Act of 1961, as added by section 301.

8 (c) TREATMENT OF ASSISTANCE.—Assistance under

9 this section shall be considered as assistance under section

10 583(a) of the Foreign Assistance Act of 1961 (relating

11 to transit interdiction), as added by section 301.

12 SEC. 305. EXCEPTION TO AUTHORITY TO CONDUCT INSPEC13 TIONS UNDER THE CHEMICAL WEAPONS

14 CONVENTION IMPLEMENTATION ACT OF 1998.

15 Section 303 of the Chemical Weapons Convention

16 Implementation Act of 1998 (as contained in division I

17 of Public Law 105–277) is amended by adding at the end

18 the following new subsection:

19 ‘‘(c) EXCEPTION.—The requirement under subsection

20 (b)(2)(A) shall not apply to inspections of United States

21 chemical weapons destruction facilities (as used within the

22 meaning of part IV(C)(13) of the Verification Annex to

23 the Convention).’’.
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1 TITLE IV—ANTITERRORISM

2 ASSISTANCE

3 SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

4 Section 574(a) of the Foreign Assistance Act of 1961

5 (22 U.S.C. 2349aa–4(a)) is amended by striking

6 ‘‘$9,840,000’’ and all that follows through the period and

7 inserting the following: ‘‘$73,000,000 for the fiscal year

8 2001.’’.

9 TITLE V—INTEGRATED SECU10 RITY ASSISTANCE PLANNING

11 Subtitle A—Establishment of a Na12 tional Security Assistance Strat13 egy

14 SEC. 501. NATIONAL SECURITY ASSISTANCE STRATEGY.

15 (a) REQUIREMENT.—Not later than 180 days after

16 the date of enactment of this Act, and annually thereafter

17 in connection with congressional presentation materials of

18 the foreign operations appropriations budget request, the

19 Secretary of State shall submit to the appropriate commit20 tees of Congress a report setting forth a National Security

21 Assistance Strategy for the United States.

22 (b) ELEMENTS OF THE STRATEGY.—The strategy

23 shall—

24 (1) set forth a 5-year plan for security assist25 ance programs;
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1 (2) be consistent with the National Security

2 Strategy of the United States;

3 (3) be coordinated with the Secretary of De4 fense and the Chairman of the Joint Chiefs of Staff;

5 (4) identify overarching security assistance ob6 jectives, including identification of the role that spe7 cific security assistance programs will play in achiev8 ing such objectives;

9 (5) identify a primary security assistance objec10 tive, as well as specific secondary objectives, for indi11 vidual countries;

12 (6) identify, on a country-by-country basis, how

13 specific resources will be allocated to accomplish

14 both primary and secondary objectives;

15 (7) discuss how specific types of assistance,

16 such as foreign military financing and international

17 military education and training, will be combined at

18 the country level to achieve United States objectives;

19 and

20 (8) detail, with respect to each of the para21 graphs (1) through (7), how specific types of assist22 ance provided pursuant to the Arms Export Control

23 Act and Foreign Assistance Act of 1961 are coordi24 nated with United States assistance programs man-
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1 aged by the Department of Defense and other agen2 cies.

3 (c) COVERED ASSISTANCE.—The National Security

4 Assistance Strategy shall cover assistance provided

5 under—

6 (1) section 23 of the Arms Export Control Act

7 (22 U.S.C. 2763);

8 (2) chapters 5, 8, and 9 of part II of the For9 eign Assistance Act of 1961 (22 U.S.C. 2347 et

10 seq.); and

11 (3) section 516 of the Foreign Assistance Act

12 of 1961 (22 U.S.C. 2321i).

13 SEC. 502. SECURITY ASSISTANCE SURVEYS.

14 (a) UTILIZATION.—The Secretary of State shall uti15 lize security assistance surveys in preparation of the Na16 tional Security Assistance Strategy required pursuant to

17 section 501 of this Act.

18 (b) FUNDING.—Of the amounts made available for

19 fiscal year 2001 under section 23 of the Arms Export Con20 trol Act (22 U.S.C. 2763), $2,000,000 is authorized to

21 be available to the Secretary of State to conduct security

22 assistance surveys, or to request such a survey, on a reim23 bursable basis, by the Department of Defense or other

24 United States Government agencies. Such surveys shall be
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1 conducted consistent with the requirements of section 26

2 of the Arms Export Control Act.

3 Subtitle B—Allocations for Certain

4 Countries

5 SEC. 511. SECURITY ASSISTANCE FOR NEW NATO MEM6 BERS.

7 (a) FOREIGN MILITARY FINANCING.—Of the

8 amounts made available for fiscal year 2001 under section

9 23 of the Arms Export Control Act (22 U.S.C. 2763),

10 $35,000,000 is authorized to be available on a grant basis

11 for the Czech Republic, Hungary, and Poland.

12 (b) MILITARY EDUCATION AND TRAINING.—Of the

13 amounts made available for fiscal year 2001 to carry out

14 chapter 5 of part II of the Foreign Assistance Act of 1961

15 (22 U.S.C. 2347 et seq.), $7,000,000 is authorized to be

16 available only for the Czech Republic, Hungary, and Po17 land.

18 (c) SELECT PRIORITIES.—In providing assistance

19 under this section, the President shall give priority to sup20 porting activities consistent with the objectives set forth

21 in the following conditions of the Senate resolution of rati22 fication for the Protocols to the North Atlantic Treaty of

23 1949 on the Accession of Poland, Hungary, and the Czech

24 Republic:
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1 (1) Condition (1)(A)(v), (vi), and (vii), relating

2 to common threats, the core mission of NATO, and

3 the capacity to respond to common threats.

4 (2) Condition (1)(B), relating to the funda5 mental importance of collective defense.

6 (3) Condition (1)(C), relating to defense plan7 ning, command structures, and force goals.

8 (4) Conditions (4)(B)(i) and (4)(B)(ii), relating

9 to intelligence matters.

10 SEC. 512. INCREASED TRAINING ASSISTANCE FOR GREECE

11 AND TURKEY.

12 (a) IN GENERAL.—Of the amounts made available

13 for fiscal year 2001 to carry out chapter 5 of part II of

14 the Foreign Assistance Act of 1961 (22 U.S.C. 2347 et

15 seq.)—

16 (1) $1,000,000 is authorized to be available for

17 Greece; and

18 (2) $2,500,000 is authorized to be available for

19 Turkey.

20 (b) USE FOR PROFESSIONAL MILITARY EDU21 CATION.—Of the amounts available under paragraphs (1)

22 and (2) of subsection (a), $500,000 of such amounts

23 should be available only for purposes of professional mili24 tary education.
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1 (c) USE FOR JOINT TRAINING.—It is the sense of

2 Congress that, to the maximum extent practicable,

3 amounts available under subsection (a) that are used in

4 accordance with subsection (b) should be used for joint

5 training of Greek and Turkish officers.

6 SEC. 513. MINIMUM ALLOCATION FOR EGYPT AND ISRAEL.

7 (a) AVAILABILITY OF FUNDS.—Of the amounts made

8 available for fiscal year 2001 for assistance under the

9 ‘‘Foreign Military Financing Program’’ account under

10 section 23 of the Arms Export Control Act (22 U.S.C.

11 2763), $1,980,000,000 is authorized to be available on a

12 grant basis for Israel, and $1,300,000,000 is authorized

13 to be available on a grant basis for Egypt.

14 (b) DISBURSEMENT OF FUNDS.—Funds authorized

15 to be available for Israel under subsection (a) shall be dis16 bursed not later than 30 days after the date of enactment

17 of an Act making appropriations for foreign operations,

18 export financing, and related programs for fiscal year

19 2001, or October 31, 2000, whichever date is later.

20 (c) AVAILABILITY OF FUNDS FOR ADVANCED WEAP21 ONS SYSTEMS.—To the extent the Government of Israel

22 requests that funds be used for such purposes, grants

23 made available for Israel out of funds authorized to be

24 available under subsection (a) for Israel shall, as agreed

25 by Israel and the United States, be available for advanced
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1 weapons systems, of which not less than 26.3 percent shall

2 be available for the procurement in Israel of defense arti3 cles and defense services, including research and develop4 ment.

5 SEC. 514. SECURITY ASSISTANCE FOR CERTAIN COUN6 TRIES.

7 (a) FOREIGN MILITARY FINANCING.—Of the

8 amounts made available for fiscal year 2001 under section

9 23 of the Arms Export Control Act (22 U.S.C. 2763)—

10 (1) $20,500,000 is authorized to be available on

11 a grant basis for Estonia, Latvia, and Lithuania;

12 (2) $5,000,000 is authorized to be available on

13 a grant basis for the Philippines;

14 (3) $5,000,000 is authorized to be available on

15 a grant basis for Georgia;

16 (4) $1,000,000 is authorized to be available on

17 a grant basis for Malta;

18 (5) $4,000,000 is authorized to be available on

19 a grant basis for Slovenia;

20 (6) $8,400,000 is authorized to be available on

21 a grant basis for Slovakia;

22 (7) $11,000,000 is authorized to be available on

23 a grant basis for Romania; and

24 (8) $8,500,000 is authorized to be available on

25 a grant basis for Bulgaria.
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1 (b) IMET.—Of the amounts made available for fiscal

2 year 2001 to carry out chapter 5 of part II of the Foreign

3 Assistance Act of 1961 (22 U.S.C. 2347 et seq.)—

4 (1) $4,000,000 is authorized to be available for

5 Estonia, Latvia, and Lithuania;

6 (2) $1,500,000 is authorized to be available for

7 the Philippines;

8 (3) $1,000,000 is authorized to be available for

9 Georgia;

10 (4) $1,000,000 is authorized to be available for

11 Malta;

12 (5) $1,000,000 is authorized to be available for

13 Slovenia;

14 (6) $1,000,000 is authorized to be available for

15 Slovakia;

16 (7) $1,500,000 is authorized to be available for

17 Romania; and

18 (8) $1,200,000 is authorized to be available for

19 Bulgaria.

20 SEC. 515. BORDER SECURITY AND TERRITORIAL INDE21 PENDENCE.

22 (a) GUUAM COUNTRIES AND ARMENIA.—For the

23 purpose of carrying out section 499C of the Foreign As24 sistance Act of 1961 and assisting GUUAM countries and

25 Armenia to strengthen national control of their borders
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1 and to promote the independence and territorial sov2 ereignty of such countries, the following amounts are au3 thorized to be made available for fiscal year 2001:

4 (1) $20,000,000 of the amounts made available

5 for fiscal year 2001 under section 23 of the Arms

6 Export Control Act (22 U.S.C. 2763).

7 (2) $10,000,000 of the amounts made available

8 for fiscal year 2001 under chapter 9 of part II of

9 the Foreign Assistance Act of 1961, as added by

10 section 301.

11 (3) $5,000,000 of the amounts made available

12 for fiscal year 2001 to carry out chapter 5 of part

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

14 2347 et seq.).

15 (4) $2,000,000 of the amounts made available

16 for fiscal year 2001 to carry out chapter 8 of part

17 II of the Foreign Assistance Act.

18 (b) GUUAM COUNTRIES DEFINED.—In this section,

19 the term ‘‘GUUAM countries’’ means the group of coun20 tries that signed a protocol on quadrilateral cooperation

21 on November 25, 1997, together with Uzbekistan.
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1 TITLE VI—OTHER PROVISIONS

2 SEC. 601. UTILIZATION OF DEFENSE ARTICLES AND SERV3 ICES.

4 Section 502 of the Foreign Assistance Act of 1961

5 (22 U.S.C. 2302) is amended in the first sentence by in6 serting ‘‘(including for antiterrorism and nonproliferation

7 purposes)’’ after ‘‘internal security’’.

8 SEC. 602. SENSE OF THE SENATE REGARDING EXCESS DE9 FENSE ARTICLES.

10 It is the sense of the Senate that the President should

11 make expanded use of the authority provided under sec12 tion 21(a) of the Arms Export Control Act to sell excess

13 defense articles by utilizing the flexibility afforded by sec14 tion 47 of such Act to ascertain the ‘‘market value’’ of

15 excess defense articles.

16 SEC. 603. SENSE OF THE SENATE.

17 It is the sense of the Senate that, prior to amending

18 the International Traffic in Arms Regulations, the Sec19 retary of State should consult with the Committee on For20 eign Relations of the Senate for the purpose of deter21 mining whether certain agreements regarding defense

22 trade with the United Kingdom and Australia should be

23 submitted to the Senate as treaties.
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1 SEC. 604. ADDITIONS TO UNITED STATES WAR RESERVE

2 STOCKPILES FOR ALLIES.

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

4 1961 (22 U.S.C. 2321h(b)(2)) is amended to read as fol5 lows:

6 ‘‘(2)(A) The value of such additions to stockpiles of

7 defense articles in foreign countries shall not exceed

8 $50,000,000 for fiscal year 2001.

9 ‘‘(B) Of the amount specified in subparagraph (A)

10 for fiscal year 2001, not more than $50,000,000 may be

11 made available for stockpiles in the Republic of Korea.’’.

12 SEC. 605. TRANSFER OF CERTAIN OBSOLETE OR SURPLUS

13 DEFENSE ARTICLES IN THE WAR RESERVE

14 STOCKPILES FOR ALLIES TO ISRAEL.

15 (a) TRANSFERS TO ISRAEL.—

16 (1) AUTHORITY.—Notwithstanding section 514

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

18 2321h), the President may transfer to Israel, in re19 turn for concessions to be negotiated by the Sec20 retary of Defense, with the concurrence of the Sec21 retary of State, any or all of the items described in

22 paragraph (2).

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

24 paragraph (1) are munitions such as armor, artil25 lery, automatic weapons ammunition, missiles, and

26 other munitions that—
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1 (A) are obsolete or surplus items;

2 (B) are in the inventory of the Department

3 of Defense;

4 (C) are intended for use as reserve stocks

5 for Israel; and

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

7 Act, are located in a stockpile in Israel.

8 (b) CONCESSIONS.—The value of concessions nego9 tiated pursuant to subsection (a) shall be at least equal

10 to the fair market value of the items transferred. The con11 cessions shall consist solely of cash compensation.

12 (c) ADVANCE NOTIFICATION OF TRANSFER.—Not

13 less than 30 days before making a transfer under the au14 thority of this section, the President shall transmit to the

15 Committee on Foreign Relations of the Senate, and the

16 Committee on International Relations of the House of

17 Representatives a notification of the proposed transfer.

18 The notification shall identify the items to be transferred

19 and the concessions to be received.

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

21 be made under the authority of this section 5 years after

22 the date of enactment of this Act.
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1 SEC. 606. STINGER MISSILES IN THE PERSIAN GULF RE2 GION.

3 (a) PROHIBITION.—Notwithstanding any other provi4 sion of law and except as provided in subsection (b), the

5 United States may not sell or otherwise make available

6 under the Arms Export Control Act or chapter 2 of part

7 II of the Foreign Assistance Act of 1961 any Stinger

8 ground-to-air missiles to any country bordering the Per9 sian Gulf.

10 (b) ADDITIONAL TRANSFERS AUTHORIZED.—In ad11 dition to other defense articles authorized to be trans12 ferred by section 581 of the Foreign Operations, Export

13 Financing, and Related Programs Appropriation Act,

14 1990, the United States may sell or make available, under

15 the Arms Export Control Act or chapter 2 of part II of

16 the Foreign Assistance Act of 1961, Stinger ground to air

17 missiles to any country bordering the Persian Gulf in

18 order to replace, on a one-for-one basis, Stinger missiles

19 previously furnished to such country if the Stinger missiles

20 to be replaced are nearing the scheduled expiration of their

21 shelf-life.

22 SEC. 607. EXCESS DEFENSE ARTICLES FOR MONGOLIA.

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

24 Notwithstanding section 516(e) of the Foreign Assistance

25 Act of 1961 (22 U.S.C. 2321j(e)), during fiscal year 2001,

26 funds available to the Department of Defense may be ex-
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1 pended for crating, packing, handling, and transportation

2 of excess defense articles transferred under the authority

3 of section 516 of that Act to Mongolia.

4 (b) CONTENT OF CONGRESSIONAL NOTIFICATION.—

5 Each notification required to be submitted under section

6 516(f) of the Foreign Assistance Act of 1961 (22 U.S.C.

7 2321j(f)) with respect to a proposed transfer of a defense

8 article described in subsection (a) shall include an esti9 mate of the amount of funds to be expended under sub10 section (a) with respect to that transfer.

11 SEC. 608. SPACE COOPERATION WITH RUSSIAN PERSONS.

12 (a) ANNUAL CERTIFICATION.—

13 (1) REQUIREMENT.—The President shall sub14 mit each year to the appropriate committees of Con15 gress, with respect to each Russian person described

16 in paragraph (2), a certification that the person is

17 not suspected of contributing to the acquisition, de18 sign, development, or production of MTCR-class bal19 listic missiles in Iran at any time since January 1,

20 2000.

21 (2) APPLICABILITY.—The certification require22 ment under paragraph (1) applies with respect to

23 each Russian person that, as of the date of the cer24 tification, is a person engaged in commercial co25 operation relating to MTCR equipment or tech-
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1 nology with a United States person pursuant to an

2 arms export license that was issued within the 36

3 months preceding the month in which the certifi4 cation is made.

5 (3) COMMENCEMENT AND TERMINATION OF RE6 QUIREMENT.—

7 (A) TIMES FOR SUBMISSION.—The Presi8 dent shall submit—

9 (i) the first certification under para10 graph (1) not later than 60 days after the

11 date of the enactment of this Act; and

12 (ii) each annual certification there13 after on the anniversary of the first sub14 mission.

15 (B) TERMINATION OF REQUIREMENT.—No

16 certification is required under paragraph (1)

17 after the submission of the annual certification

18 that is required to be submitted 5 years after

19 the date on which the first certification is sub20 mitted.

21 (b) TERMINATION OF EXISTING LICENSES.—If, at

22 any time after the issuance of a license under section 36(c)

23 of the Arms Export Control Act relating to the use, devel24 opment, or co-production of commercial rocket engine

25 technology with a foreign person, the President determines
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1 that the foreign person has engaged in any action de2 scribed in section 73(a)(1) of the Arms Export Control

3 Act (22 U.S.C. 2797b(a)(1)) since the date the license was

4 issued, the President may terminate the license.

5 (c) REPORT ON EXPORT LICENSING OF MTCR

6 ITEMS UNDER $50,000,000.—Section 71(d) of the Arms

7 Export Control Act (22 U.S.C. 2797(d)) is amended by

8 striking ‘‘Within 15 days’’ and all that follows through

9 ‘‘MTCR Annex,’’ and inserting ‘‘Within 15 days after the

10 issuance of a license (including any brokering license) for

11 the export of items valued at less than $50,000,000 that

12 are controlled under this Act pursuant to United States

13 obligations under the Missile Technology Control Regime

14 or are goods or services that are intended to support the

15 design, utilization, development, or production of a space

16 launch vehicle system listed in Category I or II of the

17 MTCR Annex,’’.

18 (d) DEFINITIONS.—In this section:

19 (1) APPROPRIATE COMMITTEES OF CON20 GRESS.—The term ‘‘appropriate committees of Con21 gress’’ means the Committee on Foreign Relations

22 of the Senate and the Committee on International

23 Relations of the House of Representatives.

24 (2) FOREIGN PERSON.—The term ‘‘foreign per25 son’’ has the meaning given the term in section
26

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1 74(7) of the Arms Export Control Act (22 U.S.C.

2 2797c(7)).

3 (3) MTCR EQUIPMENT OR TECHNOLOGY.—The

4 term ‘‘MTCR equipment or technology’’ has the

5 meaning given the term in section 74(5) of the Arms

6 Export Control Act (22 U.S.C. 2797c(5)).

7 (4) PERSON.—The term ‘‘person’’ has the

8 meaning given the term in section 74(8) of the Arms

9 Export Control Act (22 U.S.C. 2797c(8)).

10 (5) UNITED STATES PERSON.—The term

11 ‘‘United States person’’ has the meaning given the

12 term in section 74(6) of the Arms Export Control

13 Act (22 U.S.C. 2797c(6).

14 SEC. 609. ASSISTANCE FOR ISRAEL.

15 (a) DEFINITIONS.—In this section:

16 (1) ESF ASSISTANCE.—The term ‘‘ESF assist17 ance’’ means assistance under chapter 4 of part II

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

19 2346 et seq.), relating to the economic support fund.

20 (2) FOREIGN MILITARY FINANCING PRO21 GRAM.—The term ‘‘Foreign Military Financing Pro22 gram’’ means the program authorized by section 23

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

24 (b) ESF ASSISTANCE.—
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1 (1) IN GENERAL.—Of the amounts made avail2 able for each of the fiscal years 2001 through 2008

3 for ESF assistance, not less than the amount speci4 fied in paragraph (2) for each such fiscal year shall

5 be available only for Israel.

6 (2) COMPUTATION OF AMOUNT.—Subject to

7 subsection (d), the amount referred to in paragraph

8 (1) is equal to—

9 (A) the amount made available for ESF

10 assistance for Israel for the preceding fiscal

11 year, minus

12 (B) $120,000,000.

13 (c) FMF PROGRAM.—

14 (1) IN GENERAL.—Of the amount made avail15 able for each of the fiscal years 2001 through 2008

16 for assistance under the Foreign Military Financing

17 Program, not less than the amount specified in

18 paragraph (2) for each such fiscal year shall be

19 available only for Israel.

20 (2) COMPUTATION OF AMOUNT.—Subject to

21 subsection (d), the amount referred to in paragraph

22 (1) is equal to—

23 (A) the amount made available for assist24 ance under the Foreign Military Financing Pro-
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1 gram for Israel for the preceding fiscal year,

2 plus

3 (B) $60,000,000.

4 (d) EXCLUSION OF RESCISSIONS AND SUPPLE5 MENTAL APPROPRIATIONS.—For purposes of this section,

6 the computation of amounts made available for a fiscal

7 year shall not take into account any amount rescinded by

8 an Act or any amount appropriated by an Act making sup9 plemental appropriations for a fiscal year.

10 TITLE VII—TRANSFERS OF

11 NAVAL VESSELS

12 SEC. 701. 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 two ‘‘THOMASTON’’ class

16 dock landing ships ALAMO (LSD 33) and HERMITAGE

17 (LSD 34), and four ‘‘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 two ‘‘OLIVER HAZARD

24 PERRY’’ class guided missile frigates WADSWORTH

25 (FFG 9), and ESTOCIN (FFG 15). Such transfers shall
29

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

2 21 of the Arms Export Control Act (22 U.S.C. 2796,

3 2761).

4 (c) GREECE.—The President is authorized to trans5 fer to the Government of Greece two ‘‘KNOX’’ class frig6 ates VREELAND (FF 1068), and TRIPPE (FF 1075).

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

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

9 (d) TURKEY.—The President is authorized to trans10 fer to the Government of Turkey two ‘‘OLIVER HAZ11 ARD PERRY’’ class guided missile frigates JOHN A.

12 MOORE (FFG 19), and FLATLEY (FFG 21). Such

13 transfers shall be on a combined lease-sale basis under

14 sections 61 and 21 of the Arms Export Control Act (22

15 U.S.C. 2796, 2761). The authority granted by this section

16 is in addition to that granted under section 1018(a)(9)

17 of Public Law 106–65.

18 SEC. 702. INAPPLICABILITY OF AGGREGATE ANNUAL LIMI19 TATION ON VALUE OF TRANSFERRED EXCESS

20 DEFENSE ARTICLES.

21 The value of naval vessels authorized under section

22 701 of this Act to be transferred on a grant basis under

23 section 516 of the Foreign Assistance Act of 1961 (22

24 U.S.C. 2321j) shall not be included in the aggregate an25 nual value of transferred excess defense articles which is
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1 subject to the aggregate annual limitation set forth in sec2 tion 516(g) of the Foreign Assistance Act of 1961 (22

3 U.S.C. 2321j(g)).

4 SEC. 703. COSTS OF TRANSFERS.

5 Any expense of the United States in connection with

6 a transfer authorized by this Act shall be charged to the

7 recipient.

8 SEC. 704. CONDITIONS RELATING TO COMBINED LEASE9 SALE TRANSFERS.

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

11 authorized by section 701 shall be made in accordance

12 with the following requirements:

13 (1) The President may initially transfer the ves14 sel by lease, with lease payments suspended for the

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

16 lease for the vessel simultaneously enters into a for17 eign military sales agreement for the transfer of title

18 to the vessel.

19 (2) The President may not deliver to the pur20 chasing country title to the vessel until the purchase

21 price of the vessel under such a foreign military

22 sales agreement is paid in full.

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

24 under such a sales agreement and delivery of title to
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1 the recipient country, the President shall terminate

2 the lease.

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

4 payment of the purchase price in accordance with

5 the sales agreement by the date required under the

6 sales agreement—

7 (A) the sales agreement shall be imme8 diately terminated;

9 (B) the suspension of lease payments

10 under the lease shall be vacated; and

11 (C) the United States shall be entitled to

12 retain all funds received on or before the date

13 of the termination under the sales agreement,

14 up to the amount of lease payments due and

15 payable under the lease and all other costs re16 quired by the lease to be paid to that date.

17 (5) If a sales agreement is terminated pursuant

18 to paragraph (4), the United States shall not be re19 quired to pay any interest to the recipient country

20 on any amount paid to the United States by the re21 cipient country under the sales agreement and not

22 retained by the United States under the lease.

23 SEC. 705. FUNDING OF CERTAIN COSTS OF TRANSFERS.

24 There are authorized to be appropriated to the De25 fense Vessels Transfer Program Account such funds as
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1 may be necessary to cover the costs (as defined in section

2 502 of the Congressional Budget Act of 1974 (2 U.S.C.

3 661a)) of the lease-sale transfers authorized by section

4 701. Funds authorized to be appropriated under the pre5 ceding sentence for the purpose described in that sentence

6 may not be available for any other purpose.

7 SEC. 706. EXPIRATION OF AUTHORITY.

8 The authority granted by section 701 of this Act shall

9 expire two years after the date of enactment of this Act.

10 TITLE VIII—DEFINITION

11 SEC. 801. APPROPRIATE COMMITTEES OF CONGRESS DE12 FINED.

13 In this Act, the term ‘‘appropriate committees of

14 Congress’’ means the Committee on Foreign Relations and

15 the Committee on Armed Services of the Senate and the

16 Committee on International Relations and the Committee

17 on Armed Services of the House of Representatives.

Calendar No. 696

106TH CONGRESS

2D SESSION S. 2901

[Report No. 106–351]

A BILL

To authorize appropriations to carry out security

assistance for fiscal year 2001, and for otherpurposes.

JULY 20, 2000

Reported from the Committee on Foreign Relations, read

twice, and placed on the calendar