Document headings vary by document type but may contain
                    the following: the agency or agencies that issued and signed a document
the number of the CFR title and the number of each part
                      the document amends, proposes to amend, or is directly
                      related to
the agency docket number / agency internal file number
the RIN which identifies each regulatory action listed in
                      the Unified Agenda of Federal Regulatory and Deregulatory
                      Actions See the
                    Document Drafting Handbook
                    for more details.
 Department of Defense Office of the Secretary [Transmittal No. 17-69]
 AGENCY: Defense Security Cooperation Agency, Department of Defense.
 ACTION: Arms sales notice.
 SUMMARY: The Department of Defense is publishing the unclassified text of an arms sales notification.
 FOR FURTHER INFORMATION CONTACT: Pamela Young, (703) 697-9107, 
                        *pamela.a.young14.civ@mail.mil*
                         or Kathy Valadez, (703) 697-9217, 
                        *kathy.a.valadez.civ@mail.mil*; DSCA/DSA-RAN.


SUPPLEMENTARY INFORMATION: This 36(b)(1) arms sales notification is published to fulfill the requirements of section 155 of Public Law 104-164 dated July 21, 1996. The following is a copy of a letter to the Speaker of the House of Representatives, Transmittal 17-69 with attached Policy Justification and Sensitivity of Technology. Dated: January 12, 2018. Aaron Siegel, Alternate OSD Federal Register Liaison Officer, Department of Defense.
 
 
  
 
 Transmittal No. 17-69 Notice of Proposed Issuance of Letter of Offer Pursuant to Section 36(b)(1) of the Arms Export Control Act, as amended (i) 
                    *Prospective Purchaser:*
                     Government of Japan (ii) 
                    *Total Estimated Value:* Major Defense Equipment *
$123.0 millionOther
$ 10.3 millionTotal
$133.3 million
 (iii) 
                    *Description and Quantity or Quantities of Articles or Services under Consideration for Purchase:* *Major Defense Equipment (MDE):* Four (4) Standard Missile-3 (SM-3) Block IIA Missiles *Non-MDE:* Also included are four (4) MK 29 missile canisters, U.S. Government and contractor representatives' technical assistance, transportation, engineering and logistics support services, and other related elements of logistical and program support. (iv) 
                    *Military Department:*
                     Navy (JA-P-ATB) (v) 
                    *Prior Related Cases, if any:*
                     None (vi) 
                    *Sales Commission, Fee, etc., Paid, Offered, or Agreed to be Paid:*
                     None (vii) 
                    *Sensitivity of Technology Contained in the Defense Article or Defense Services Proposed to be Sold:*
                     See Attached Annex (viii) 
                    *Date Report Delivered to Congress:*
                     January 9, 2018 * As defined in Section 47(6) of the Arms Export Control Act. POLICY JUSTIFICATION Japan—Standard Missile-3 (SM-3) Block IIA Missiles The Government of Japan has requested a possible sale of four (4) Standard Missile-3 (SM-3) Block IIA missiles. Also included are four (4) MK 29 missile canisters, U.S. Government and contractor representatives' technical assistance, transportation, engineering and logistics support services, and other related elements of logistical and program support. The estimated total case value is $133.3 million. This proposed sale will contribute to the foreign policy and national security of the United States by improving the security of a major ally that has been, and continues to be, a force for political stability and economic progress in the Asia-Pacific region. The proposed sale will provide Japan with an increased ballistic missile defense capability to assist in defending the Japanese homeland and U.S. personnel stationed there. Japan will have no difficulty absorbing these additional munitions and support into the Japan Maritime Self Defense Force (JMSDF). The proposed sale of this equipment and support will not alter the basic military balance in the region. The principal contractors will be Raytheon Missile Systems, Tucson, AZ (SM-3); and BAE Systems, Minneapolis, MN (MK 29). There are no known offset agreements proposed in connection with this potential sale. Implementation of this proposed sale will require annual trips to Japan involving U.S. Government and contractor representatives for technical reviews, support, and oversight for approximately five years. There will be no adverse impact on U.S. defense readiness as a result of this proposed sale. Transmittal No. 17-69 Notice of Proposed Issuance of Letter of Offer Pursuant to Section 36(b)(1) of the Arms Export Control Act Annex Item No. vii (vii) 
                    *Sensitivity of Technology:* 1. The proposed sale will involve the release of sensitive technology to the Government of Japan related to the Standard Missile-3 (SM-3) Block IIA missile. The ship- or ground-launched SM-3 Block IIA is the most recent iteration in the SM-3 family. It has two distinct new features: larger rocket motors that will allow it to defend broader areas from ballistic missile threats; and a larger kinetic warhead. The kinetic warhead has been enhanced, improving the search, discrimination, acquisition and tracking functions, to address emerging threats. Once enclosed in the canister, the SM-3 Block IIA missile is classified CONFIDENTIAL. The optics hardware and signal processor are classified SECRET. 2. If a technologically advanced adversary were to obtain knowledge of specific hardware, the information could be used to develop countermeasures which might reduce weapons system effectiveness or be used in the development of a system with similar or advanced capabilities. 3. A determination has been made that Japan can provide substantially the same degree of protection for sensitive technology being released as the U.S. Government. This proposed sustainment program is necessary to the furtherance of the U.S. foreign policy and national security objectives outlined in the policy justification. 4. All defense articles and services listed in this transmittal are authorized for release and export to the Government of Japan.


BILLING CODE 5001-06-P BILLING CODE 5001-06-C [FR Doc. 2018-00764 Filed 1-17-18; 8:45 am] BILLING CODE 5001-06-P