In the Senate of the United States,

May 1, 2002.

Resolved, That the bill from the House of Representatives (H.R. 1646) entitled ‘‘An Act to authorize appropriations for the Department of State for fiscal years 2002 and

2003, and for other purposes.’’, do pass with the following

AMENDMENT:

Strike out all after the enacting clause and insert:

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

2 (a) SHORT TITLE.—This Act may be cited as the ‘‘Se3 curity Assistance Act of 2002’’.
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1 (b) TABLE OF CONTENTS.—The table of contents for

2 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Definitions.

TITLE I—VERIFICATION OF ARMS CONTROL AND

NONPROLIFERATION AGREEMENTS

Sec. 101. Verification and Compliance Bureau personnel.

Sec. 102. Key Verification Assets Fund.

Sec. 103. Revised verification and compliance reporting requirements.

TITLE II—MILITARY AND RELATED ASSISTANCE

Subtitle A—Foreign Military Sales and Financing Authorities

Sec. 201. Authorization of appropriations.

Sec. 202. Relationship of foreign military sales to United States nonproliferation

interests.

Sec. 203. Special Defense Acquisition Fund for nonproliferation and counter-narcotics purposes.

Sec. 204. Representation allowances.

Sec. 205. Arms Export Control Act prohibition on transactions with countries

that have repeatedly provided support for acts of international

terrorism.

Sec. 206. Congressional notification of small arms and light weapons license approvals; annual reports.

Subtitle B—International Military Education and Training

Sec. 211. Authorization of appropriations.

Sec. 212. Annual human rights reports.

Subtitle C—Security Assistance for Select Countries

Sec. 221. Security assistance for Israel and Egypt.

Sec. 222. Security assistance for Greece and Turkey.

Sec. 223. Security assistance for certain other countries.

Subtitle D—Excess Defense Article and Drawdown Authorities

Sec. 231. Excess defense articles for certain countries.

Sec. 232. Annual briefing on projected availability of excess defense articles.

Sec. 233. Expanded drawdown authority.

Sec. 234. Duration of security assistance leases.

Subtitle E—Other Political-Military Assistance

Sec. 241. Destruction of surplus weapons stockpiles.

Sec. 242. Identification of funds for demining programs.

Subtitle F—Antiterrorism Assistance

Sec. 251. Authorization of appropriations.

Sec. 252. Specific program objectives.
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Subtitle G—Other Matters

Sec. 261. Revised military assistance reporting requirements.

TITLE III—NONPROLIFERATION AND EXPORT CONTROL

ASSISTANCE

Subtitle A—General Provisions

Sec. 301. Authorization of appropriations.

Sec. 302. Joint State Department-Defense Department programs.

Sec. 303. Nonproliferation technology acquisition programs for friendly foreign

countries.

Sec. 304. International nonproliferation and export control training.

Sec. 305. Relocation of scientists.

Sec. 306. Audits of the International Science and Technology Centers Program.

Sec. 307. International Atomic Energy Agency regular budget assessments.

Sec. 308. Revised nonproliferation reporting requirements.

Subtitle B—Russian Federation Debt Reduction for Nonproliferation

Sec. 311. Short title.

Sec. 312. Findings and purposes.

Sec. 313. Definitions.

Sec. 314. Establishment of the Russian Nonproliferation Investment Facility.

Sec. 315. Reduction of the Russian Federation’s Soviet-era debt owed to the

United States, generally.

Sec. 316. Reduction of Soviet-era debt owed to the United States as a result of

credits extended under title I of the Agricultural Trade Development and Assistance Act of 1954.

Sec. 317. Authority to engage in debt-for-nonproliferation exchanges and debt

buybacks.

Sec. 318. Russian Nonproliferation Investment Agreement.

Sec. 319. Structure of debt-for-nonproliferation arrangements.

Sec. 320. Independent media and the rule of law.

Sec. 321. Nonproliferation requirement.

Sec. 322. Discussion of Russian Federation debt reduction for nonproliferation

with other creditor states.

Sec. 323. Implementation of United States policy.

Sec. 324. Consultations with Congress.

Sec. 325. Annual report to Congress.

Subtitle C—Nonproliferation Assistance Coordination

Sec. 331. Short title.

Sec. 332. Findings.

Sec. 333. Independent states of the former Soviet Union defined.

Sec. 334. Establishment of Committee on Nonproliferation Assistance to the Independent States of the Former Soviet Union.

Sec. 335. Duties of the Committee.

Sec. 336. Administrative support.

Sec. 337. Confidentiality of information.

Sec. 338. Statutory construction.

TITLE IV—EXPEDITING THE MUNITIONS LICENSING PROCESS

Sec. 401. License officer staffing.
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Sec. 402. Funding for database automation.

Sec. 403. Information management priorities.

Sec. 404. Improvements to the Automated Export System.

Sec. 405. Adjustment of threshold amounts for congressional review purposes.

Sec. 406. Periodic notification of pending applications for export licenses.

TITLE V—NATIONAL SECURITY ASSISTANCE STRATEGY

Sec. 501. Establishment of the Strategy.

Sec. 502. Security assistance surveys.

TITLE VI—MISCELLANEOUS PROVISIONS

Sec. 601. Nuclear and missile nonproliferation in South Asia.

Sec. 602. Real-time public availability of raw seismological data.

Sec. 603. Detailing United States governmental personnel to international arms

control and nonproliferation organizations.

Sec. 604. Diplomatic presence overseas.

Sec. 605. Protection against agricultural bioterrorism.

Sec. 606. Compliance with the Chemical Weapons Convention.

TITLE VII—AUTHORITY TO TRANSFER NAVAL VESSELS

Sec. 701. Authority to transfer naval vessels to certain foreign countries.

1 SEC. 2. DEFINITIONS.

2 In this Act:

3 (1) APPROPRIATE COMMITTEES OF CONGRESS.—

4 The term ‘‘appropriate committees of Congress’’

5 means the Committee on Foreign Relations of the

6 Senate and the Committee on International Relations

7 of the House of Representatives.

8 (2) DEFENSE ARTICLE.—The term ‘‘defense arti9 cle’’ has the meaning given the term in section 47(3)

10 of the Arms Export Control Act (22 U.S.C. 2794

11 note).

12 (3) DEFENSE SERVICE.—The term ‘‘defense serv13 ice’’ has the meaning given the term in section 47(4)

14 of the Arms Export Control Act (22 U.S.C. 2794

15 note).
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1 (4) EXCESS DEFENSE ARTICLE.—The term ‘‘ex2 cess defense article’’ has the meaning given the term

3 in section 644(g) of the Foreign Assistance Act of

4 1961 (22 U.S.C. 2403(g)).

5 (5) SECRETARY.—Except as otherwise provided,

6 the term ‘‘Secretary’’ means the Secretary of State.

7 TITLE I—VERIFICATION OF

8 ARMS CONTROL AND NON9 PROLIFERATION AGREE10 MENTS

11 SEC. 101. VERIFICATION AND COMPLIANCE BUREAU PER12 SONNEL.

13 (a) IN GENERAL.—Of the total amounts made avail14 able to the Department of State for fiscal years 2002 and

15 2003, not less than $14,000,000 each such fiscal year shall

16 be provided to the Bureau of Verification and Compliance

17 of the Department of State for Bureau-administered activi18 ties, including the Key Verification Assets Fund.

19 (b) ADDITIONAL PERSONNEL.—In addition to the

20 amounts made available under subsection (a), not less than

21 $1,800,000 shall be made available from the Department’s

22 American Salaries Account, for the purpose of hiring new

23 personnel to carry out the Bureau’s responsibilities, as set

24 forth in section 112 of the Arms Export Control and Non-
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1 proliferation Act of 1999 (113 Stat. 1501A–486), as enacted

2 into law by section 1000(a)(7) of Public Law 106–113.

3 SEC. 102. KEY VERIFICATION ASSETS FUND.

4 Of the total amounts made available to the Department

5 of State for fiscal years 2002 and 2003, not less than

6 $7,000,000 shall be made available within the Verification

7 and Compliance Bureau’s account for each such fiscal year

8 to carry out section 1111 of the Arms Control and Non9 proliferation Act of 1999 (113 Stat. 1501A–486), as enacted

10 into law by section 1000(a)(7) of Public Law 106–113.

11 SEC. 103. REVISED VERIFICATION AND COMPLIANCE RE12 PORTING REQUIREMENTS.

13 Section 403(a) of the Arms Control and Disarmament

14 Act (22 U.S.C. 2593a(a)) is amended by striking ‘‘January

15 31’’ and inserting ‘‘April 15’’.

16 TITLE II—MILITARY AND

17 RELATED ASSISTANCE

18 Subtitle A—Foreign Military Sales

19 and Financing Authorities

20 SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

21 There are authorized to be appropriated to the Presi22 dent for grant assistance under section 23 of the Arms Ex23 port Control Act (22 U.S.C. 2763) and for the subsidy cost,

24 as defined in section 502(5) of the Federal Credit Reform

25 Act of 1990, of direct loans under such section
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1 $3,674,000,000 for fiscal year 2002 and $4,267,000,000 for

2 fiscal year 2003.

3 SEC. 202. RELATIONSHIP OF FOREIGN MILITARY SALES TO

4 UNITED STATES NONPROLIFERATION INTER5 ESTS.

6 (a) AUTHORIZED PURPOSES.—The first sentence of

7 section 4 of the Arms Export Control Act (22 U.S.C. 2754)

8 is amended by inserting ‘‘for preventing or hindering the

9 proliferation of weapons of mass destruction and of the

10 means of delivering such weapons,’’ after ‘‘self-defense,’’.

11 (b) DEFINITION OF ‘‘WEAPONS OF MASS DESTRUC12 TION’’.—Section 47 of the Arms Export Control Act (22

13 U.S.C. 2794) is amended—

14 (1) by striking ‘‘and’’ at the end of paragraph

15 (8);

16 (2) by striking the period at the end of para17 graph (9) and inserting ‘‘; and’’; and

18 (3) by adding at the end the following new para19 graph:

20 ‘‘(10) ‘weapons of mass destruction’ has the

21 meaning provided by section 1403(1) of the Defense

22 Against Weapons of Mass Destruction Act of 1996

23 (title XIV of Public Law 104–201; 110 Stat. 2717; 50

24 U.S.C. 2302(1)).’’.
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1 (c) SENSE OF CONGRESS.—It is the sense of Congress

2 that the Secretary should ensure, in circumstances where

3 the sale of defense articles or defense services to a friendly

4 country would serve the nonproliferation interests of the

5 United States, but that country cannot afford to purchase

6 such defense articles or defense services, that grant assist7 ance is provided pursuant to section 23 of the Arms Export

8 Control Act to facilitate such acquisition.

9 SEC. 203. SPECIAL DEFENSE ACQUISITION FUND FOR NON10 PROLIFERATION AND COUNTER-NARCOTICS

11 PURPOSES.

12 (a) ESTABLISHMENT.—Notwithstanding any other

13 provision of law, the President shall direct that the Special

14 Defense Acquisition Fund be established pursuant to section

15 51 of the Arms Export Control Act (22 U.S.C. 2795).

16 (b) USE OF THE SPECIAL DEFENSE ACQUISITION

17 FUND.—Section 51(a)(4) of the Arms Export Control Act

18 (22 U.S.C. 2795(a)(4)) is amended by striking ‘‘for use for’’

19 and all that follows through ‘‘equipment’’ and inserting the

20 following: ‘‘for use for—

21 ‘‘(A) narcotics control purposes and are ap22 propriate to the needs of recipient countries, such

23 as small boats, planes (including helicopters),

24 and communications equipment; and
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1 ‘‘(B) nonproliferation and export control

2 purposes, such as nuclear, radiological, chemical,

3 and biological warfare materials detection equip4 ment.’’.

5 (c) LIMITATION.—Section 51(c) of the Arms Export

6 Control Act (22 U.S.C. 2795(c)) is amended—

7 (1) in paragraph (1), by striking all after ‘‘ex8 ceed’’ through the period and inserting

9 ‘‘$200,000,000.’’; and

10 (2) in paragraph (2), by striking ‘‘provided’’

11 and all that follows through ‘‘Acts’’ and inserting

12 ‘‘specifically authorized by law in advance’’.

13 (d) AUTHORIZATION.—For fiscal year 2003, not more

14 than $20,000,000 may be made available for obligation for

15 the procurement of items pursuant to section 51 of the Arms

16 Export Control Act.

17 SEC. 204. REPRESENTATION ALLOWANCES.

18 Section 43(c) of the Arms Export Control Act (22

19 U.S.C. 2792(c)) is amended by striking ‘‘$72,500’’ and in20 serting ‘‘$86,500’’.
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1 SEC. 205. ARMS EXPORT CONTROL ACT PROHIBITION ON

2 TRANSACTIONS WITH COUNTRIES THAT HAVE

3 REPEATEDLY PROVIDED SUPPORT FOR ACTS

4 OF INTERNATIONAL TERRORISM.

5 The second sentence of section 40(d) of the Arms Ex6 port Control Act (22 U.S.C. 2780(d)) is amended—

7 (1) by inserting ‘‘or chemical, biological, or radi8 ological agents’’ after ‘‘nuclear explosive devices’’; and

9 (2) by inserting ‘‘or chemical, biological, or radi10 ological agents’’ after ‘‘nuclear material’’.

11 SEC. 206. CONGRESSIONAL NOTIFICATION OF SMALL ARMS

12 AND LIGHT WEAPONS LICENSE APPROVALS;

13 ANNUAL REPORTS.

14 (a) CONGRESSIONAL NOTIFICATION OF EXPORT LI15 CENSE APPROVALS.—Section 36(c) of the Arms Export

16 Control Act (22 U.S.C. 2776(c)) is amended by inserting

17 ‘‘(or, in the case of a defense article that is a firearm con18 trolled under category I of the United States Munitions

19 List, $1,000,000 or more)’’ after ‘‘$50,000,000 or more’’.

20 (b) REPORT.—Not later than six months after the date

21 of enactment of this Act, and annually thereafter, the Sec22 retary of State shall submit an unclassified report to the

23 appropriate congressional committees on the numbers,

24 range, and findings of end-use monitoring of United States

25 transfers in small arms and light weapons.
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1 (c) ANNUAL MILITARY ASSISTANCE REPORTS.—Sec2 tion 655(b)(3) of the Foreign Assistance Act of 1961 (22

3 U.S.C. 2415(b)(3)) is amended by inserting before the pe4 riod at the end the following: ‘‘, including, in the case of

5 defense articles that are firearms controlled under category

6 I of the United States Munitions List, a statement of the

7 aggregate dollar value and quantity of semiautomatic as8 sault weapons, or related equipment, the manufacture,

9 transfer, or possession of which is unlawful under section

10 922 of title 18, United States Code, that were licensed for

11 export during the period covered by the report’’.

12 (d) ANNUAL REPORT ON ARMS BROKERING.—Not

13 later than six months after the date of enactment of this

14 Act, and annually thereafter, the Secretary of State shall

15 submit a report to the appropriate committees of Congress

16 on activities of registered arms brokers, including violations

17 of the Arms Export Control Act.

18 (e) ANNUAL REPORT ON INVESTIGATIONS OF THE BU19 REAU OF ALCOHOL, TOBACCO AND FIREARMS.—Not later

20 than six months after the date of enactment of this Act,

21 and annually thereafter, the Secretary of the Treasury shall

22 submit a report to the appropriate committees of Congress

23 on investigations and other efforts undertaken by the Bu24 reau of Alcohol, Tobacco and Firearms (including coopera25 tion with other agencies) to stop United States-source weap-
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1 ons from being used in terrorist acts and international

2 crime.

3 Subtitle B—International Military

4 Education and Training

5 SEC. 211. AUTHORIZATION OF APPROPRIATIONS.

6 There are authorized to be appropriated to the Presi7 dent $75,000,000 for fiscal year 2002 and $85,290,000 for

8 fiscal year 2003 to carry out chapter 5 of part II of the

9 Foreign Assistance Act of 1961 (22 U.S.C. 2347 et seq.; re10 lating to international military education and training).

11 SEC. 212. ANNUAL HUMAN RIGHTS REPORTS.

12 (a) WITH RESPECT TO PROHIBITIONS ON NON13 MILITARY ASSISTANCE.—Section 116(d) of the Foreign As14 sistance Act of 1961 (22 U.S.C. 2151n(d)) is amended by

15 redesignating paragraphs (7) and (8) as paragraphs (8)

16 and (9), respectively, and by inserting after paragraph (6)

17 the following:

18 ‘‘(7) to the extent practicable, for any violation

19 of internationally recognized human rights reported

20 under this subsection, whether any foreign military or

21 defense ministry civilian participant in education

22 and training activities under chapter 5 of part II of

23 this Act was involved;’’.
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1 (b) RECORDS REGARDING FOREIGN PARTICIPANTS.—

2 Section 548 of the Foreign Assistance Act of 1961 (22

3 U.S.C. 2347e) is amended—

4 (1) by striking ‘‘In’’ and inserting ‘‘(a) DEVEL5 OPMENT AND MAINTENANCE OF DATABASE.—In’’;

6 and

7 (2) by adding at the end the following new sub8 sections:

9 ‘‘(b) ANNUAL LIST OF FOREIGN PERSONNEL.—For the

10 purposes of preparing the report required pursuant to sec11 tion 116(d), the Secretary of State may annually request

12 the Secretary of Defense to provide information contained

13 in the database with respect to a list submitted to the Sec14 retary of Defense by the Secretary of State, containing the

15 names of foreign personnel or military units. To the extent

16 practicable, the Secretary of Defense shall provide, and the

17 Secretary of State may take into account, the information

18 contained in the database, if any, relating to the Secretary

19 of State’s submission.

20 ‘‘(c) UPDATING OF DATABASE.—If the Secretary of

21 State determines and reports to Congress under section

22 116(d) that a foreign person identified in the database

23 maintained pursuant to this section was involved in a vio24 lation of internationally recognized human rights, the Sec-
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1 retary of Defense shall ensure that the database is updated

2 to contain such fact and all relevant information.’’.

3 Subtitle C—Security Assistance for

4 Select Countries

5 SEC. 221. SECURITY ASSISTANCE FOR ISRAEL AND EGYPT.

6 (a) AUTHORIZATION OF APPROPRIATIONS.—

7 (1) ISRAEL.—Section 513 of the Security Assist8 ance Act of 2000 (Public Law 106–280) is amended

9 by striking ‘‘2001 and 2002’’ each place that it ap10 pears and inserting ‘‘2002 and 2003’’.

11 (2) EGYPT.—Section 514 of the Security Assist12 ance Act of 2000 (Public Law 106–280) is amended

13 by striking ‘‘2001 and 2002’’ each place that it ap14 pears and inserting ‘‘2002 and 2003’’.

15 (b) BALLISTIC MISSILE DEFENSE.—Of the amounts

16 made available for fiscal years 2002 and 2003 under section

17 513 of the Security Assistance Act of 2000 (Public Law

18 106–280), as amended by subsection (a), $100,000,000 may

19 be used each such fiscal year for the establishment, in co20 operation with a United States company, of a production

21 line for the Arrow missile in the United States.

22 SEC. 222. SECURITY ASSISTANCE FOR GREECE AND TUR23 KEY.

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

25 the fiscal years 2002 and 2003 to carry out chapter 5 of
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1 part II of the Foreign Assistance Act of 1961 (22 U.S.C.

2 2347 et seq.)—

3 (1) $1,000,000 for fiscal year 2002 and

4 $1,170,000 for fiscal year 2003 are authorized to be

5 available for Greece; and

6 (2) $2,500,000 for fiscal year 2002 and

7 $2,920,000 for fiscal year 2003 are authorized to be

8 available for Turkey.

9 (b) USE FOR PROFESSIONAL MILITARY EDUCATION.—

10 Of the amounts available under paragraphs (1) and (2) of

11 subsection (a) for each of fiscal years 2002 and 2003,

12 $500,000 of each such amount should be available for pur13 poses of professional military education.

14 (c) USE FOR JOINT TRAINING.—It is the sense of Con15 gress that, to the maximum extent practicable, amounts

16 available under subsection (a) that are used in accordance

17 with subsection (b) should be used for joint training of

18 Greek and Turkish officers.

19 (d) REPEAL.—Section 512 of the Security Assistance

20 Act of 2000 (Public Law 106–280; 114 Stat. 856) is re21 pealed.

22 SEC. 223. SECURITY ASSISTANCE FOR CERTAIN OTHER

23 COUNTRIES.

24 (a) FMF FOR CERTAIN OTHER COUNTRIES.—Of the

25 amounts made available for the fiscal years 2002 and 2003
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1 under section 23 of the Arms Export Control Act (22 U.S.C.

2 2763), the following amounts are authorized to be available

3 on a grant basis for the following countries for the fiscal

4 years specified:

5 (1) THE BALTIC STATES.—For all of the Baltic

6 states of Estonia, Latvia, and Lithuania, $21,000,000

7 for fiscal year 2002 and $24,400,000 for fiscal year

8 2003.

9 (2) BULGARIA.—For Bulgaria, $10,000,000 for

10 fiscal year 2002 and $11,620,000 for fiscal year 2003.

11 (3) THE CZECH REPUBLIC.—For the Czech Re12 public, $12,000,000 for fiscal year 2002 and

13 $14,000,000 for fiscal year 2003.

14 (4) GEORGIA.—For Georgia, $5,650,000 for fis15 cal year 2002 and $6,560,000 for fiscal year 2003.

16 (5) HUNGARY.—For Hungary, $12,000,000 for

17 fiscal year 2002 and $14,000,000 for fiscal year 2003.

18 (6) JORDAN.—For Jordan, $75,000,000 for fiscal

19 year 2002 and $87,300,000 for fiscal year 2003.

20 (7) MALTA.—For Malta, $1,000,000 for fiscal

21 year 2002 and $1,170,000 for fiscal year 2003.

22 (8) THE PHILIPPINES.—For the Philippines,

23 $19,000,000 for fiscal year 2002 and $22,100,000 for

24 fiscal year 2003.
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1 (9) POLAND.—For Poland, $15,000,000 for fiscal

2 year 2002 and $17,500,000 for fiscal year 2003.

3 (10) ROMANIA.—For Romania, $11,500,000 for

4 fiscal year 2002 and $13,400,000 for fiscal year 2003.

5 (11) SLOVAKIA.— For Slovakia, $8,500,000 for

6 fiscal year 2002 and $9,900,000 for fiscal year 2003.

7 (12) SLOVENIA.—For Slovenia, $4,500,000 for

8 fiscal year 2002 and $5,250,000 for fiscal year 2003.

9 (b) IMET.—Of the amounts made available for the fis10 cal years 2002 and 2003 to carry out chapter 5 of part

11 II of the Foreign Assistance Act of 1961 (22 U.S.C. 2347

12 et seq.), the following amounts are authorized to be available

13 for the following countries for the fiscal years specified:

14 (1) THE BALTIC STATES.—For all of the Baltic

15 states of Estonia, Latvia, and Lithuania, $3,000,000

16 for fiscal year 2002 and $3,420,000 for fiscal year

17 2003.

18 (2) BULGARIA.—For Bulgaria, $1,200,000 for

19 fiscal year 2002 and $1,370,000 for fiscal year 2003.

20 (3) THE CZECH REPUBLIC.—For the Czech Re21 public, $1,800,000 for fiscal year 2002 and

22 $2,050,000 for fiscal year 2003.

23 (4) GEORGIA.—For Georgia, $850,000 for fiscal

24 year 2002 and $970,000 for fiscal year 2003.
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1 (5) HUNGARY.—For Hungary, $1,800,000 for

2 fiscal year 2002 and $2,050,000 for fiscal year 2003.

3 (6) JORDAN.—For Jordan, $1,800,000 for fiscal

4 year 2002 and $2,050,000 for fiscal year 2003.

5 (7) MALTA.—For Malta, $300,000 for fiscal year

6 2002 and $350,000 for fiscal year 2003.

7 (8) THE PHILIPPINES.—For the Philippines,

8 $1,710,000 for fiscal year 2002 and $2,000,000 for

9 fiscal year 2003.

10 (9) POLAND.—For Poland, $1,900,000 for fiscal

11 year 2002 and $2,160,000 for fiscal year 2003.

12 (10) ROMANIA.—For Romania, $1,400,000 for

13 fiscal year 2002 and $1,600,000 for fiscal year 2003.

14 (11) SLOVAKIA.—For Slovakia, $850,000 for fis15 cal year 2002 and $970,000 for fiscal year 2003.

16 (12) SLOVENIA.—For Slovenia, $800,000 for fis17 cal year 2002 and $910,000 for fiscal year 2003.

18 (c) WRITTEN EXPLANATION OF PRESIDENTIAL DETER19 MINATIONS.—In the event that the President determines not

20 to provide, or determines to exceed, the funding allocated

21 for any country specified in this section by an amount that

22 is more than five percent of that specified in this section,

23 the President shall submit to the appropriate committees

24 of Congress within 15 days of such determination a written

25 explanation of the reasons therefor.
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1 (d) REPEALS.—Sections 511 (a) and (b) and 515 of

2 the Security Assistance Act of 2000 are repealed.

3 Subtitle D—Excess Defense Article

4 and Drawdown Authorities

5 SEC. 231. EXCESS DEFENSE ARTICLES FOR CERTAIN COUN6 TRIES.

7 (a) AUTHORITY.—Notwithstanding section 516(e) of

8 the Foreign Assistance Act of 1961 (22 U.S.C. 2321j(e), dur9 ing each of the fiscal years 2002 and 2003, funds available

10 to the Department of Defense may be expended for crating,

11 packing, handling, and transportation of excess defense ar12 ticles transferred under the authority of section 516 of such

13 Act to Albania, Bulgaria, Croatia, Estonia, Former Yugo14 slavia Republic of Macedonia, Georgia, India, Kazakhstan,

15 Kyrgyzstan, Latvia, Lithuania, Moldova, Mongolia, Paki16 stan, Romania, Slovakia, Slovenia, Tajikistan,

17 Turkmenistan, Ukraine, and Uzbekistan.

18 (b) SENSE OF CONGRESS.—The authority provided

19 under this section should be utilized only for those countries

20 demonstrating a genuine commitment to democracy and

21 human rights.

22 SEC. 232. ANNUAL BRIEFING ON PROJECTED AVAILABILITY

23 OF EXCESS DEFENSE ARTICLES.

24 Not later than 90 days prior to the commencement of

25 each fiscal year, the Department of Defense shall brief the
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1 Department of State and the appropriate committees of

2 Congress regarding the expected availability of excess de3 fense articles during the next fiscal year, for the purpose

4 of enabling the Department of State to factor such avail5 ability into annual security assistance plans.

6 SEC. 233. EXPANDED DRAWDOWN AUTHORITY.

7 Section 506(c) of the Foreign Assistance Act of 1961

8 (22 U.S.C. 2318(c)) is amended to read as follows:

9 ‘‘(c) For the purposes of any provision of law that au10 thorizes the drawdown of defense or other articles or com11 modities, or defense or other services from an agency of the

12 United States Government, such drawdown may include the

13 supply of commercial transportation and related services

14 and defense or other articles or commodities, or defense or

15 other services, that are acquired by contract for the purposes

16 of the drawdown in question, if the cost to acquire such

17 items or services is less than the cost to the United States

18 Government of providing such items or services from exist19 ing agency assets.’’.

20 SEC. 234. DURATION OF SECURITY ASSISTANCE LEASES.

21 Section 61 of the Arms Export Control Act (22 U.S.C.

22 2796) is amended—

23 (1) in subsection (b), by striking ‘‘of not to ex24 ceed five years’’ and inserting ‘‘that may not exceed

25 5 years, plus a period of time specified in the lease
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1 as may be necessary for major refurbishment work to

2 be performed prior to final delivery by the lessor of

3 the defense articles,’’; and

4 (2) by adding at the end the following new sub5 section:

6 ‘‘(d) In this section, the term ‘major refurbishment

7 work’ means refurbishment work performed over a period

8 estimated to be 6 months or more.’’.

9 Subtitle E—Other Political-Military

10 Assistance

11 SEC. 241. DESTRUCTION OF SURPLUS WEAPONS STOCK12 PILES.

13 Of the funds authorized to be appropriated to the

14 President for fiscal years 2002 and 2003 to carry out chap15 ters 1 and 10 of part I of the Foreign Assistance Act of

16 1961 (22 U.S.C. 2151 et seq.), relating to development as17 sistance, up to $10,000,000 is authorized to be made avail18 able each such fiscal year for the destruction of surplus

19 stockpiles of small arms, light weapons, and other muni20 tions.

21 SEC. 242. IDENTIFICATION OF FUNDS FOR DEMINING PRO22 GRAMS.

23 Of the funds authorized to be appropriated under sec24 tion 201 for nonproliferation, antiterrorism, demining, and

25 related programs, $40,000,000 is authorized to be appro-
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1 priated for fiscal year 2002 for demining programs and

2 program support costs.

3 Subtitle F—Antiterrorism

4 Assistance

5 SEC. 251. AUTHORIZATION OF APPROPRIATIONS.

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

7 (22 U.S.C. 2349aa–4(a)) is amended by striking

8 ‘‘$72,000,000 for fiscal year 2001 and $73,000,000 for fiscal

9 year 2002’’ and inserting ‘‘$73,000,000 for fiscal year 2002

10 and $75,000,000 for fiscal year 2003’’.

11 SEC. 252. SPECIFIC PROGRAM OBJECTIVES.

12 Of the amounts authorized to be appropriated to the

13 President pursuant to section 574(a) of the Foreign Assist14 ance Act of 1961 (22 U.S.C. 2349aa–4(a)), $2,000,000 may

15 be made available for the provision of the Pisces system to

16 the governments of the Philippines and Pakistan.

17 Subtitle G—Other Matters

18 SEC. 261. REVISED MILITARY ASSISTANCE REPORTING RE19 QUIREMENTS.

20 (a) ANNUAL FOREIGN MILITARY TRAINING RE21 PORTS.—Section 656(a) of the Foreign Assistance Act of

22 1961 (22 U.S.C. 2416) does not apply to any NATO or

23 major non-NATO ally unless the chairman or ranking

24 member of one of the appropriate committees of Congress

25 has specifically requested, in writing, inclusion of such
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1 country in the report. Such request shall be made not later

2 than 45 calendar days prior to the date on which the report

3 is required to be transmitted.

4 (b) ANNUAL MILITARY ASSISTANCE REPORTS.—Sec5 tion 655 of the Foreign Assistance Act of 1961 (22 U.S.C.

6 2415) is amended—

7 (1) by striking subsection (c); and

8 (2) by redesignating subsection (d) as subsection

9 (c).

10 (c) QUARTERLY REPORTS ON GOVERNMENT-TO-GOV11 ERNMENT ARMS EXPORTS.—Section 36(a) of the Arms Ex12 port Control Act (22 U.S.C. 2776(a)) is amended—

13 (1) by striking paragraph (7); and

14 (2) by redesignating paragraphs (8), (9), (10),

15 (11), (12), and (13) as paragraphs (7), (8), (9), (10),

16 (11), and (12), respectively.

17 TITLE III—NONPROLIFERATION

18 AND EXPORT CONTROL AS19 SISTANCE

20 Subtitle A—General Provisions

21 SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

22 (a) AUTHORIZATION.—Section 585 of the Foreign As23 sistance Act of 1961 (22 U.S.C. 2349bb–4) is amended—
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1 (1) in subsection (a), by striking all after ‘‘chap2 ter’’ and inserting ‘‘$142,000,000 for fiscal year 2002

3 and $152,000,000 for fiscal year 2003.’’; and

4 (2) in subsection (c), by striking ‘‘2001’’ each

5 place that it appears and inserting ‘‘2002’’.

6 (b) SUBALLOCATIONS.—Of the amounts authorized to

7 be appropriated to the President for fiscal years 2002 and

8 2003 under chapter 9 of part II of the Foreign Assistance

9 Act of 1961 (22 U.S.C. 2349bb et seq.)—

10 (1) not less than $2,000,000 shall be made avail11 able each such fiscal year for the purpose of carrying

12 out section 584 of the Foreign Assistance Act of 1961,

13 as added by section 304 of this Act; and

14 (2) $65,000,000 for fiscal year 2002 and

15 $65,000,000 for fiscal year 2003 are authorized to be

16 appropriated for science and technology centers in the

17 independent states of the former Soviet Union.

18 (c) CONFORMING AMENDMENT.—Section 302 of the Se19 curity Assistance Act of 2000 (Public Law 106–280) is re20 pealed.

21 SEC. 302. JOINT STATE DEPARTMENT-DEFENSE DEPART22 MENT PROGRAMS.

23 Of the amounts authorized to be appropriated to the

24 President for fiscal years 2002 and 2003 under chapter 9

25 of part II of the Foreign Assistance Act of 1961 (22 U.S.C.
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1 2349bb et seq.), the Secretary is authorized to make avail2 able not more than $1,000,000 for international

3 counterproliferation programs administered by the Depart4 ment of Defense.

5 SEC. 303. NONPROLIFERATION TECHNOLOGY ACQUISITION

6 PROGRAMS FOR FRIENDLY FOREIGN COUN7 TRIES.

8 (a) IN GENERAL.—For the purpose of enhancing the

9 nonproliferation and export control capabilities of friendly

10 countries, of the amounts authorized to be appropriated for

11 fiscal years 2002 and 2003 under chapter 9 of part II of

12 the Foreign Assistance Act of 1961 (22 U.S.C. 2349bb et

13 seq.), the Secretary is authorized to expend not more than—

14 (1) $5,000,000 for the procurement and provi15 sion of nuclear, chemical, and biological detection sys16 tems, including spectroscopic and pulse echo tech17 nologies; and

18 (2) $10,000,000 for the procurement and provi19 sion of x-ray systems capable of imaging sea-cargo

20 containers.

21 (b) TRAINING REQUIREMENT.—The Secretary shall

22 not provide any equipment or technology pursuant to this

23 section without having first developed and budgeted for a

24 multiyear training plan to assist foreign personnel in the

25 utilization of those items.
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1 (c) PROCUREMENT AUTHORITIES.—For fiscal year

2 2003, the Secretary shall utilize, to the maximum extent

3 practicable, the Special Defense Acquisition Fund for pro4 curements authorized under this section.

5 SEC. 304. INTERNATIONAL NONPROLIFERATION AND EX6 PORT CONTROL TRAINING.

7 Chapter 9 of part II of the Foreign Assistance Act of

8 1961 (22 U.S.C. 2349bb et seq.) is amended—

9 (1) by redesignating sections 584 and 585 as sec10 tions 585 and 586, respectively; and

11 (2) by inserting after section 583 the following:

12 ‘‘SEC. 584. INTERNATIONAL NONPROLIFERATION EXPORT

13 CONTROL TRAINING.

14 ‘‘(a) GENERAL AUTHORITY.—The President is author15 ized to furnish, on such terms and conditions consistent

16 with this chapter (but whenever feasible on a reimbursable

17 basis), education and training to foreign personnel for the

18 purpose of enhancing the nonproliferation and export con19 trol capabilities of such personnel through their attendance

20 in special courses of instruction conducted by the United

21 States.

22 ‘‘(b) ADMINISTRATION OF COURSES.—The Secretary of

23 State shall have overall responsibility for the development

24 and conduct of international nonproliferation education

25 and training programs, but may utilize other departments
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1 and agencies, as appropriate, to recommend personnel for

2 the education and training, and to administer specific

3 courses of instruction.

4 ‘‘(c) PURPOSES.—Education and training activities

5 conducted under this section shall be—

6 ‘‘(1) of a technical nature, emphasizing tech7 niques for detecting, deterring, monitoring, inter8 dicting, and countering proliferation;

9 ‘‘(2) designed to encourage effective and mutu10 ally beneficial relations and increased understanding

11 between the United States and friendly countries; and

12 ‘‘(3) designed to improve the ability of friendly

13 countries to utilize their resources with maximum ef14 fectiveness, thereby contributing to greater self-reli15 ance by such countries.

16 ‘‘(d) PRIORITY TO CERTAIN COUNTRIES.—In selecting

17 military and foreign governmental personnel for education

18 and training pursuant to this section, priority shall be

19 given to personnel from countries for which the Secretary

20 of State has given priority under section 583(b).’’.

21 SEC. 305. RELOCATION OF SCIENTISTS.

22 (a) REINSTATEMENT OF CLASSIFICATION AUTHOR23 ITY.—Section 4 of the Soviet Scientists Immigration Act

24 of 1992 (Public Law 102–509; 106 Stat. 3316; 8 U.S.C.
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1 1153 note) is amended by striking subsection (d) and insert2 ing the following:

3 ‘‘(d) DURATION OF AUTHORITY.—The authority under

4 subsection (a) shall be in effect during the following periods:

5 ‘‘(1) The period beginning on the date of the en6 actment of this Act and ending 4 years after such

7 date.

8 ‘‘(2) The period beginning on the date of the en9 actment of the Security Assistance Act of 2002 and

10 ending 4 years after such date.’’.

11 (b) LIMITATION ON NUMBER OF SCIENTISTS ELIGIBLE

12 FOR VISAS UNDER AUTHORITY.—Subsection (c) of such sec13 tion is amended by striking ‘‘750’’ and inserting ‘‘950’’.

14 (c) LIMITATION ON ELIGIBILITY.—Subsection (a) of

15 such section is amended by adding at the end the following

16 new sentence: ‘‘A scientist is not eligible for designation

17 under this subsection if the scientist has previously been

18 granted the status of an alien lawfully admitted for perma19 nent residence (as defined in section 101(a)(20) of the Im20 migration and Nationality Act (8 U.S.C. 1101(a)(20))).’’.

21 (d) CONSULTATION REQUIREMENT.—The Attorney

22 General shall consult with the Secretary, the Secretary of

23 Defense, the Secretary of Energy, and the heads of other

24 appropriate agencies of the United States regarding—
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1 (1) previous experience in implementing the So2 viet Scientists Immigration Act of 1992; and

3 (2) any changes that those officials would rec4 ommend in the regulations prescribed under that Act.

5 SEC. 306. AUDITS OF THE INTERNATIONAL SCIENCE AND

6 TECHNOLOGY CENTERS PROGRAM.

7 Consistent with section 303(b) of the Security Assist8 ance Act of 2000 (Public Law 106–280; 114 Stat. 853), not

9 later than 60 days after the date of enactment of this Act,

10 the Secretary shall submit a detailed report to the appro11 priate committees of Congress on United States audit prac12 tices with respect to the ‘‘International Science and Tech13 nology Centers Program’’.

14 SEC. 307. INTERNATIONAL ATOMIC ENERGY AGENCY REG15 ULAR BUDGET ASSESSMENTS.

16 (a) FINDINGS.—Congress makes the following findings:

17 (1) The Department of State has concluded that

18 the International Atomic Energy Agency (hereafter in

19 this section referred to as the ‘‘IAEA’’) is a critical

20 and effective instrument for verifying compliance

21 with international nuclear nonproliferation agree22 ments, and that it serves as an essential barrier to the

23 spread of nuclear weapons.

24 (2) The IAEA furthers United States national

25 security objectives by helping to prevent the prolifera-
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1 tion of nuclear weapons material, especially through

2 its work on effective verification and safeguards meas3 ures.

4 (3) The IAEA can also perform a critical role in

5 monitoring and verifying aspects of nuclear weapons

6 reduction agreements between nuclear weapons states.

7 (4) As the IAEA has negotiated and developed

8 more effective verification and safeguards measures, it

9 has experienced significant real growth in its mission,

10 especially in the vital area of nuclear safeguards in11 spections.

12 (5) Nearly two decades of zero budget growth

13 have affected the ability of the IAEA to carry out its

14 mission and to hire and retain the most qualified in15 spectors and managers, as evidenced in the decreasing

16 proportion of such personnel who hold doctorate de17 grees.

18 (6) Although voluntary contributions by the

19 United States lessen the IAEA’s budgetary con20 straints, they cannot readily be used for the long-term

21 capital investments or permanent staff increases nec22 essary to an effective IAEA safeguards regime.

23 (7) It was not the intent of Congress that the

24 United States contributions to all United Nations-re25 lated organizations and activities be reduced pursu-
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1 ant to the Admiral James W. Nance and Meg Dono2 van Foreign Relations Authorization Act, Fiscal

3 Years 2000 and 2001 (as enacted into law by section

4 1000(a)(7) of Public Law 106–113; 113 Stat. 1501A–

5 405 et seq.), which sets 22 percent assessment rates as

6 benchmarks for the general United Nations budget, the

7 Food and Agricultural Organization, the World

8 Health Organization, and the International Labor

9 Organization. Rather, contributions for important

10 and effective agencies such as the IAEA should be

11 maintained at levels commensurate with the criti12 cality of its mission.

13 (b) ADDITIONAL FUNDING FOR THE INTERNATIONAL

14 ATOMIC ENERGY AGENCY.—It is the sense of Congress

15 that—

16 (1) the Secretary should negotiate a gradual and

17 sustained increase in the regular budget of the Inter18 national Atomic Energy Agency, which should begin

19 with the 2002 budget;

20 (2) if a regular budget increase for the IAEA is

21 achieved, the Secretary should seek to gain consensus

22 within the IAEA Board of Governors for allocation of

23 a larger proportion of that budget to nuclear non24 proliferation activities; and
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1 (3) if such a reallocation of the regular IAEA

2 budget cannot be obtained, the United States should

3 decrease its voluntary contribution by $400,000 for

4 each $1,000,000 increase in its annual assessment.

5 (c) AUTHORIZATION OF APPROPRIATIONS.—Of the

6 funds authorized to be appropriated for international orga7 nizations, $60,000,000 are authorized to be appropriated

8 in fiscal year 2002 for the payment of the United States

9 assessment to the International Atomic Energy Agency, and

10 $75,000,000 shall be available for that purpose in fiscal

11 year 2003.

12 SEC. 308. REVISED NONPROLIFERATION REPORTING RE13 QUIREMENTS.

14 Section 308 of Public Law 102–182 (22 U.S.C. 5606)

15 is hereby repealed.

16 Subtitle B—Russian Federation

17 Debt Reduction for Non18 proliferation

19 SEC. 311. SHORT TITLE.

20 This subtitle may be cited as the ‘‘Russian Federation

21 Debt Reduction for Nonproliferation Act of 2001’’.

22 SEC. 312. FINDINGS AND PURPOSES.

23 (a) FINDINGS.—Congress finds the following:

24 (1) It is in the vital security interests of the

25 United States to prevent the spread of weapons of
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1 mass destruction to additional states or to terrorist

2 organizations, and to ensure that other nations’ obli3 gations to reduce their stockpiles of such arms in ac4 cordance with treaties, executive agreements, or polit5 ical commitments are fulfilled.

6 (2) In particular, it is in the vital national secu7 rity interests of the United States to ensure that—

8 (A) all stocks of nuclear weapons and weap9 ons-usable nuclear material in the Russian Fed10 eration are secure and accounted for;

11 (B) stocks of nuclear weapons and weapons12 usable nuclear material that are excess to mili13 tary needs in the Russian Federation are mon14 itored and reduced;

15 (C) any chemical or biological weapons, re16 lated materials, and facilities in the Russian

17 Federation are destroyed;

18 (D) the Russian Federation’s nuclear weap19 ons complex is reduced to a size appropriate to

20 its post-Cold War missions, and its experts in

21 weapons of mass destruction technologies are

22 shifted to gainful and sustainable civilian em23 ployment;

24 (E) the Russian Federation’s export control

25 system blocks any proliferation of weapons of
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1 mass destruction, the means of delivering such

2 weapons, and materials, equipment, know-how,

3 or technology that would be used to develop,

4 produce, or deliver such weapons; and

5 (F) these objectives are accomplished with

6 sufficient monitoring and transparency to pro7 vide confidence that they have in fact been ac8 complished and that the funds provided to ac9 complish these objectives have been spent effi10 ciently and effectively.

11 (3) United States programs should be designed to

12 accomplish these vital objectives in the Russian Fed13 eration as rapidly as possible, and the President

14 should develop and present to Congress a plan for

15 doing so.

16 (4) Substantial progress has been made in

17 United States-Russian Federation cooperative pro18 grams to achieve these objectives, but much more re19 mains to be done to reduce the urgent risks to United

20 States national security posed by the current state of

21 the Russian Federation’s weapons of mass destruction

22 stockpiles and complexes.

23 (5) The threats posed by inadequate management

24 of weapons of mass destruction stockpiles and com25 plexes in the Russian Federation remain urgent. Inci-
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1 dents in years immediately preceding 2001, which

2 have been cited by the Russia Task Force of the Sec3 retary of Energy’s Advisory Board, include—

4 (A) a conspiracy at one of the Russian Fed5 eration’s largest nuclear weapons facilities to

6 steal nearly enough highly enriched uranium for

7 a nuclear bomb;

8 (B) an attempt by an employee of the Rus9 sian Federation’s premier nuclear weapons facil10 ity to sell nuclear weapons designs to agents of

11 Iraq and Afghanistan; and

12 (C) the theft of radioactive material from a

13 Russian Federation submarine base.

14 (6) Addressing these threats to United States and

15 world security will ultimately consume billions of dol16 lars, a burden that will have to be shared by the Rus17 sian Federation, the United States, and other govern18 ments, if this objective is to be achieved.

19 (7) The creation of new funding streams could

20 accelerate progress in reducing these threats to United

21 States security and help the government of the Rus22 sian Federation to fulfill its responsibility for secure

23 management of its weapons stockpiles and complexes

24 as United States assistance phases out.
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1 (8) The Russian Federation suffers from a sig2 nificant foreign debt burden, a substantial proportion

3 of which it inherited from the Soviet Union. The Rus4 sian Federation is taking full responsibility for this

5 debt, but the burden of debt repayment could threaten

6 Russian Federation economic reform, particularly in

7 2003 and beyond.

8 (9) The Russian Federation’s need for debt relief

9 has been the subject of discussions between the United

10 States and the Russian Federation at the highest lev11 els and is cited by United States officials as one rea12 son why the Russian Federation has recognized that

13 its future lies with the West.

14 (10) Past debt-for-environment exchanges, in

15 which a portion of a country’s foreign debt is canceled

16 in return for certain environmental commitments or

17 payments by that country, provide a model for a pos18 sible debt-for-nonproliferation exchange with the Rus19 sian Federation, which could be designed to provide

20 additional funding for nonproliferation and arms re21 duction initiatives.

22 (11) Most of the Russian Federation’s official bi23 lateral debt is held by United States allies that are

24 advanced industrial democracies. Since the issues de25 scribed pose threats to United States allies as well,
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1 United States leadership that results in a larger con2 tribution from United States allies to cooperative

3 threat reduction activities will be needed.

4 (b) PURPOSES.—The purposes of this subtitle are—

5 (1) to recognize the vital interests of the United

6 States, its allies, and the Russian Federation in re7 ducing the threats to international security described

8 in the findings set forth in subsection (a);

9 (2) to facilitate the accomplishment of the United

10 States objectives described in the findings set forth in

11 subsection (a) by providing for the alleviation of a

12 portion of the Russian Federation’s foreign debt, thus

13 allowing the use of additional resources for these pur14 poses; and

15 (3) to ensure that resources freed from debt in

16 the Russian Federation are targeted to the accom17 plishment of the United States objectives described in

18 the findings set forth in subsection (a).

19 SEC. 313. DEFINITIONS.

20 In this subtitle:

21 (1) AGREEMENT.—The term ‘‘Agreement’’ means

22 the Russian Nonproliferation Investment Agreement

23 provided for in section 318.
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1 (2) APPROPRIATE CONGRESSIONAL COMMIT2 TEES.—The term ‘‘appropriate congressional commit3 tees’’ means—

4 (A) the Committee on International Rela5 tions and the Committee on Appropriations of

6 the House of Representatives; and

7 (B) the Committee on Foreign Relations

8 and the Committee on Appropriations of the

9 Senate.

10 (3) COST.—The term ‘‘cost’’ has the meaning

11 given that term in section 502(5) of the Federal Cred12 it Reform Act of 1990 (2 U.S.C. 661a(5)).

13 (4) FACILITY.—The term ‘‘Facility’’ means the

14 Russian Nonproliferation Investment Facility estab15 lished in the Department of the Treasury by section

16 314.

17 (5) SOVIET-ERA DEBT.—The term ‘‘Soviet-era

18 debt’’ means debt owed as a result of loans or credits

19 provided by the United States (or any agency of the

20 United States) to the Union of Soviet Socialist Re21 publics.

22 SEC. 314. ESTABLISHMENT OF THE RUSSIAN NON23 PROLIFERATION INVESTMENT FACILITY.

24 There is established in the Department of the Treasury

25 an entity to be known as the ‘‘Russian Nonproliferation In-
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1 vestment Facility’’ for the purpose of providing for the ad2 ministration of debt reduction in accordance with this sub3 title.

4 SEC. 315. REDUCTION OF THE RUSSIAN FEDERATION’S SO5 VIET-ERA DEBT OWED TO THE UNITED

6 STATES, GENERALLY.

7 (a) AUTHORITY TO REDUCE SOVIET-ERA DEBT.—

8 (1) AUTHORITY.—

9 (A) IN GENERAL.—Except as provided in

10 subparagraph (B), and subject to section 321, the

11 President may reduce the amount of Soviet-era

12 debt owed by the Russian Federation to the

13 United States (or any agency of the United

14 States) that is outstanding as of October 1, 2001.

15 (B) EXCEPTION.—The authority of sub16 paragraph (A) to reduce Soviet-era debt does not

17 include any debt that is described in section

18 316(a)(1).

19 (2) CONGRESSIONAL NOTIFICATION.—The Presi20 dent shall notify the appropriate congressional com21 mittees of his intention to reduce the amount of the

22 Russian Federation’s Soviet-era debt at least 15 days

23 in advance of any formal determination to do so.

24 (3) AUTHORIZATION OF APPROPRIATIONS.—
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1 (A) IN GENERAL.—For the cost of the reduc2 tion of any Soviet-era debt pursuant to this sec3 tion, there are authorized to be appropriated to

4 the President—

5 (i) $50,000,000 for fiscal year 2002;

6 and

7 (ii) $100,000,000 for fiscal year 2003.

8 (B) LIMITATION.—The authority provided

9 by this section shall be available only to the ex10 tent that appropriations for the cost of the modi11 fication of any Soviet-era debt pursuant to this

12 section are made in advance.

13 (4) CERTAIN PROHIBITIONS INAPPLICABLE.—

14 (A) IN GENERAL.—A reduction of Soviet-era

15 debt pursuant to this section shall not be consid16 ered assistance for the purposes of any provision

17 of law limiting assistance to a country.

18 (B) ADDITIONAL REQUIREMENT.—The au19 thority of this section may be exercised notwith20 standing section 620(r) of the Foreign Assistance

21 Act of 1961 or section 321 of the International

22 Development and Food Assistance Act of 1975.

23 (b) IMPLEMENTATION OF SOVIET-ERA DEBT REDUC24 TION.—
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1 (1) IN GENERAL.—Any reduction of Soviet-era

2 debt pursuant to subsection (a) shall be—

3 (A) implemented pursuant to the terms of a

4 Russian Nonproliferation Investment Agreement

5 authorized under section 318; and

6 (B) accomplished at the direction of the Fa7 cility by the exchange of a new obligation for ob8 ligations of the type referred to in such sub9 section that are outstanding as of October 1,

10 2001.

11 (2) EXCHANGE OF OBLIGATIONS.—

12 (A) IN GENERAL.—The Facility shall notify

13 the agency primarily responsible for admin14 istering part I of the Foreign Assistance Act of

15 1961 of an agreement entered into under para16 graph (1) with the Russian Federation to ex17 change a new obligation for outstanding obliga18 tions.

19 (B) ADDITIONAL REQUIREMENT.—At the di20 rection of the Facility, the old obligations that

21 are the subject of the agreement shall be canceled

22 and a new debt obligation for the Russian Fed23 eration shall be established relating to the agree24 ment, and the agency primarily responsible for

25 administering part I of the Foreign Assistance
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1 Act of 1961 shall make an adjustment in its ac2 counts to reflect the debt reduction.

3 (c) ADDITIONAL TERMS AND CONDITIONS.—The fol4 lowing additional terms and conditions shall apply to the

5 reduction of Soviet-era debt under subsection (a)(1) in the

6 same manner as such terms and conditions apply to the

7 reduction of debt under section 704(a)(1) of the Foreign As8 sistance Act of 1961:

9 (1) The provisions relating to repayment of

10 principal under section 705 of the Foreign Assistance

11 Act of 1961.

12 (2) The provisions relating to interest on new ob13 ligations under section 706 of the Foreign Assistance

14 Act of 1961.

15 SEC. 316. REDUCTION OF SOVIET-ERA DEBT OWED TO THE

16 UNITED STATES AS A RESULT OF CREDITS

17 EXTENDED UNDER TITLE I OF THE AGRICUL18 TURAL TRADE DEVELOPMENT AND ASSIST19 ANCE ACT OF 1954.

20 (a) AUTHORITY TO REDUCE CERTAIN SOVIET-ERA

21 DEBT.—

22 (1) AUTHORITY.—Notwithstanding any other

23 provision of law, and subject to section 321, the Presi24 dent may reduce the amount of Soviet-era debt owed

25 to the United States (or any agency of the United
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1 States) by the Russian Federation that is outstanding

2 as of October 1, 2001, as a result of any credits ex3 tended under title I of the Agricultural Trade Devel4 opment and Assistance Act of 1954 (7 U.S.C. 1701 et

5 seq.).

6 (2) CONGRESSIONAL NOTIFICATION.—The Presi7 dent shall notify the appropriate congressional com8 mittees of his intention to reduce the amount of the

9 Russian Federation’s Soviet-era debt described in

10 paragraph (1) at least 15 days in advance of any for11 mal determination to do so.

12 (3) AUTHORIZATION OF APPROPRIATIONS.—

13 (A) IN GENERAL.—For the cost of the reduc14 tion of any Soviet-era debt pursuant to this sec15 tion, there are authorized to be appropriated to

16 the President—

17 (i) $50,000,000 for fiscal year 2002;

18 and

19 (ii) $100,000,000 for fiscal year 2003.

20 (B) LIMITATION.—The authority provided

21 by this section shall be available only to the ex22 tent that appropriations for the cost of the modi23 fication of any Soviet-era debt pursuant to this

24 section are made in advance.
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1 (b) IMPLEMENTATION OF SOVIET-ERA DEBT REDUC2 TION.—

3 (1) IN GENERAL.—Any reduction of Soviet-era

4 debt pursuant to subsection (a) shall be—

5 (A) implemented pursuant to the terms of a

6 Russian Nonproliferation Investment Agreement

7 authorized under section 318; and

8 (B) accomplished at the direction of the Fa9 cility by the exchange of a new obligation for ob10 ligations of the type referred to in such sub11 section that are outstanding as of October 1,

12 2001.

13 (2) EXCHANGE OF OBLIGATIONS.—

14 (A) IN GENERAL.—The Facility shall notify

15 the Commodity Credit Corporation of an agree16 ment entered into under paragraph (1) with an

17 eligible country to exchange a new obligation for

18 outstanding obligations.

19 (B) ADDITIONAL REQUIREMENT.—At the di20 rection of the Facility, the old obligations that

21 are the subject of the agreement shall be canceled

22 and a new debt obligation shall be established for

23 the Russian Federation relating to the agree24 ment, and the Commodity Credit Corporation
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1 shall make an adjustment in its accounts to re2 flect the debt reduction.

3 (c) ADDITIONAL TERMS AND CONDITIONS.—The fol4 lowing additional terms and conditions shall apply to the

5 reduction of Soviet-era debt under subsection (a)(1) in the

6 same manner as such terms and conditions apply to the

7 reduction of debt under section 604(a)(1) of the Agricultural

8 Trade Development and Assistance Act of 1954 (7 U.S.C.

9 1738c):

10 (1) The provisions relating to repayment of

11 principal under section 605 of such Act.

12 (2) The provisions relating to interest on new ob13 ligations under section 606 of such Act.

14 SEC. 317. AUTHORITY TO ENGAGE IN DEBT-FOR-NON15 PROLIFERATION EXCHANGES AND DEBT

16 BUYBACKS.

17 (a) LOANS AND CREDITS ELIGIBLE FOR SALE, REDUC18 TION, OR CANCELLATION.—

19 (1) DEBT-FOR-NONPROLIFERATION EX20 CHANGES.—

21 (A) IN GENERAL.—Notwithstanding any

22 other provision of law, and subject to section

23 321, the President may, in accordance with this

24 section, sell to any purchaser eligible under sub25 paragraph (B), any loan or credit described in
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1 section 315(a)(1), or any credit described in sec2 tion 316(a)(1), or on receipt of payment from an

3 eligible purchaser, reduce or cancel any such

4 loan or credit or portion thereof, only for the

5 purpose of facilitating a debt-for-nonprolifera6 tion exchange to support activities that further

7 United States objectives described in the findings

8 set forth in section 312(a).

9 (B) ELIGIBLE PURCHASER.—A loan or

10 credit may be sold, reduced, or canceled under

11 subparagraph (A) with respect to a purchaser

12 who presents plans satisfactory to the President

13 for using the loan or credit for the purpose of en14 gaging in debt-for-nonproliferation exchange to

15 support activities that further United States ob16 jectives described in the findings set forth in sec17 tion 312(a).

18 (C) CONSULTATION REQUIREMENT.—Before

19 the sale under subparagraph (A) to any pur20 chaser eligible under subparagraph (B), or any

21 reduction or cancellation under subparagraph

22 (A), of any loan or credit made to the Russian

23 Federation, the President shall consult with that

24 country concerning the amount of loans or cred25 its to be sold, reduced, or canceled and their uses
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1 for debt-for-nonproliferation exchanges to sup2 port activities that further United States objec3 tives described in the findings set forth in section

4 312(a).

5 (D) AUTHORIZATION OF APPROPRIA6 TIONS.—For the cost of the reduction of any debt

7 pursuant to subparagraph (A), amounts author8 ized to be appropriated under sections 315(a)(3)

9 and 316(a)(3) shall be made available for such

10 reduction of debt pursuant to subparagraph (A).

11 (2) DEBT BUYBACKS.—Notwithstanding any

12 other provision of law, the President may, in accord13 ance with this section, sell to the Russian Federation

14 any loan or credit described in section 315(a)(1) or

15 any credit described in section 316(a)(1), or on re16 ceipt of payment from the Russian Federation, reduce

17 or cancel such loan or credit or portion thereof, if the

18 purpose of doing so is to facilitate a debt buyback by

19 the Russian Federation of its own qualified debt and

20 the Russian Federation uses a substantial additional

21 amount of its local currency to support activities that

22 further United States objectives described in the find23 ings set forth in section 312(a).

24 (3) LIMITATION.—The authority provided by

25 paragraphs (1) and (2) shall be available only to the
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1 extent that appropriations for the cost of the modi2 fication of any debt pursuant to such paragraphs are

3 made in advance.

4 (4) TERMS AND CONDITIONS.—Notwithstanding

5 any other provision of law, the President shall, in ac6 cordance with this section, establish the terms and

7 conditions under which loans and credits may be sold,

8 reduced, or canceled pursuant to this section.

9 (5) ADMINISTRATION.—

10 (A) IN GENERAL.—The Facility shall notify

11 the Administrator of the agency primarily re12 sponsible for administering part I of the Foreign

13 Assistance Act of 1961 or the Commodity Credit

14 Corporation, as the case may be, of purchasers

15 that the President has determined to be eligible

16 under paragraph (1)(B), and shall direct such

17 agency or Corporation, as the case may be, to

18 carry out the sale, reduction, or cancellation of

19 a loan pursuant to such paragraph.

20 (B) ADDITIONAL REQUIREMENT.—Such

21 agency or Corporation, as the case may be, shall

22 make an adjustment in its accounts to reflect the

23 sale, reduction, or cancellation.

24 (b) DEPOSIT OF PROCEEDS.—The proceeds from a

25 sale, reduction, or cancellation of a loan sold, reduced, or
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1 canceled pursuant to this section shall be deposited in the

2 United States Government account or accounts established

3 for the repayment of such loan.

4 SEC. 318. RUSSIAN NONPROLIFERATION INVESTMENT

5 AGREEMENT.

6 (a) AUTHORITY.—Subject to section 321, the Secretary

7 is authorized, in consultation with other appropriate offi8 cials of the Federal Government, to enter into an agreement

9 with the Russian Federation concerning the use of the funds

10 saved by that country as a result of any debt relief provided

11 pursuant to this subtitle. An agreement entered into under

12 this section may be referred to as the ‘‘Russian Non13 proliferation Investment Agreement’’.

14 (b) CONTENT OF AGREEMENT.—The Russian Non15 proliferation Investment Agreement shall ensure that—

16 (1) a significant proportion of the funds saved

17 by the Russian Federation as a result of any debt re18 lief provided pursuant to this subtitle is devoted to

19 nonproliferation programs and projects;

20 (2) funding of each such program or project is

21 approved by the United States Government, either di22 rectly or through its representation on any governing

23 board that may be directed or established to manage

24 these funds;
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1 (3) administration and oversight of nonprolifera2 tion programs and projects incorporate best practices

3 from established threat reduction and nonprolifera4 tion assistance programs;

5 (4) each program or project funded pursuant to

6 the Agreement is subject to audits conducted by or for

7 the United States Government;

8 (5) unobligated funds for investments pursuant

9 to the Agreement are segregated from other Russian

10 Federation funds and invested in financial instru11 ments guaranteed or insured by the United States

12 Government;

13 (6) the funds that are devoted to programs and

14 projects pursuant to the Agreement are not subject to

15 any taxation by the Russian Federation;

16 (7) all matters relating to the intellectual prop17 erty rights and legal liabilities of United States firms

18 in a given project are agreed upon before the expendi19 ture of funds is authorized for that project; and

20 (8) not less than 75 percent of the funds made

21 available for each nonproliferation program or project

22 under the Agreement is spent in the Russian Federa23 tion.

24 (c) USE OF EXISTING MECHANISMS.—It is the sense

25 of Congress that, to the extent practicable, the boards and
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1 administrative mechanisms of existing threat reduction and

2 nonproliferation programs should be used in the adminis3 tration and oversight of programs and projects under the

4 Agreement.

5 SEC. 319. STRUCTURE OF DEBT-FOR-NONPROLIFERATION

6 ARRANGEMENTS.

7 It is the sense of Congress that any debt-for-non8 proliferation arrangements with the Russian Federation

9 should provide for gradual debt relief over a period of years,

10 with debt relief to be suspended if more than two years’

11 worth of funds remain unobligated for approved non12 proliferation programs or projects.

13 SEC. 320. INDEPENDENT MEDIA AND THE RULE OF LAW.

14 Subject to section 321, of the agreed funds saved by

15 the Russian Federation as a result of any debt relief pro16 vided pursuant to this subtitle, up to 10 percent may be

17 used to promote a vibrant, independent media sector and

18 the rule of law in the Russian Federation through an en19 dowment to support the establishment of a ‘‘Center for an

20 Independent Press and the Rule of Law’’ in the Russian

21 Federation, which shall be directed by a joint United

22 States-Russian Board of Directors in which the majority

23 of members, including the chairman, shall be United States

24 personnel, and which shall be responsible for management

25 of the endowment, its funds, and the Center’s programs.
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1 SEC. 321. NONPROLIFERATION REQUIREMENT.

2 (a) PROLIFERATION TO STATE SPONSORS OF TER3 RORISM.—The authorities granted under sections 315, 316,

4 317, 318, and 320 may not be exercised, and funds may

5 not be expended, unless and until—

6 (1) the Russian Federation makes material

7 progress in stemming the flow of sensitive goods, tech8 nologies, material, and know-how related to the de9 sign, development, and production of weapons of mass

10 destruction and the means to deliver them to coun11 tries that have been determined by the Secretary, for

12 the purposes of section 40 of the Arms Export Control

13 Act, section 620A of the Foreign Assistance Act, or

14 section 6(j) of the Export Administration Act of 1979,

15 to have repeatedly provided support for acts of inter16 national terrorism; and

17 (2) the President certifies to the appropriate con18 gressional committees that the condition required in

19 paragraph (1) has been met.

20 (b) ANNUAL DETERMINATION.—If, in any annual re21 port to Congress submitted pursuant to section 325, the

22 President cannot certify that the Russian Federation con23 tinues to meet the condition required in subsection (a)(1),

24 then, subject to the provisions of subsection (c), the authori25 ties granted under under sections 315, 316, 317, 318, and

26 320 may not be exercised, and funds may not be expended,
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1 unless and until such certification is made to the appro2 priate congressional committees.

3 (c) PRESIDENTIAL WAIVER.—The President may

4 waive the requirements of subsection (b) for a fiscal year

5 if the President determines that imposition of those require6 ments in that fiscal year would be counter to the national

7 interest of the United States and so reports to the appro8 priate congressional committees.

9 SEC. 322. DISCUSSION OF RUSSIAN FEDERATION DEBT RE10 DUCTION FOR NONPROLIFERATION WITH

11 OTHER CREDITOR STATES.

12 The President and such other appropriate officials as

13 the President may designate shall institute discussions in

14 the Paris Club of creditor states with the objectives of—

15 (1) reaching agreement that each member of the

16 Paris Club is authorized to negotiate debt exchanges

17 with the Russian Federation covering a portion of its

18 bilateral debt, to finance the accomplishment of non19 proliferation and arms reduction activities;

20 (2) convincing other member states of the Paris

21 Club, especially the largest holders of Soviet-era Rus22 sian debt, to dedicate significant proportions of their

23 bilateral debt with the Russian Federation to these

24 purposes; and
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1 (3) reaching agreement, as appropriate, to estab2 lish a unified debt exchange fund to manage and pro3 vide financial transparency for the resources provided

4 through the debt exchanges.

5 SEC. 323. IMPLEMENTATION OF UNITED STATES POLICY.

6 It is the sense of Congress that implementation of debt7 for-nonproliferation programs with the Russian Federation

8 should be overseen by the Committee on Nonproliferation

9 Assistance to the Independent States of the Former Soviet

10 Union (established pursuant to section 334 of this Act).

11 SEC. 324. CONSULTATIONS WITH CONGRESS.

12 The President shall consult with the appropriate con13 gressional committees on a periodic basis to review the oper14 ations of the Facility and the Russian Federation’s eligi15 bility for benefits from the Facility.

16 SEC. 325. ANNUAL REPORT TO CONGRESS.

17 Not later than December 31, 2002, and not later than

18 December 31 of each year thereafter, the President shall pre19 pare and transmit to Congress a report concerning the oper20 ation of the Facility during the fiscal year preceding the

21 fiscal year in which the report is transmitted. The report

22 on a fiscal year shall include—

23 (1) a description of the activities undertaken by

24 the Facility during the fiscal year;
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1 (2) a description of any agreement entered into

2 under this subtitle;

3 (3) a description of any grants that have been

4 provided pursuant to the agreement; and

5 (4) a summary of the results of audits performed

6 in the fiscal year pursuant to the agreement.

7 Subtitle C—Nonproliferation

8 Assistance Coordination

9 SEC. 331. SHORT TITLE.

10 This subtitle may be cited as the ‘‘Nonproliferation As11 sistance Coordination Act of 2002’’.

12 SEC. 332. FINDINGS.

13 Congress finds that—

14 (1) United States nonproliferation efforts in the

15 independent states of the former Soviet Union have

16 achieved important results in ensuring that weapons

17 of mass destruction, weapons-usable material and

18 technology, and weapons-related knowledge remain be19 yond the reach of terrorists and weapons-proliferating

20 states;

21 (2) although these efforts are in the United

22 States national security interest, the effectiveness of

23 these efforts suffers from a lack of coordination within

24 and among United States Government agencies;
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1 (3) increased spending and investment by the

2 United States private sector on nonproliferation ef3 forts in the independent states of the former Soviet

4 Union, specifically, spending and investment by the

5 United States private sector in job creation initiatives

6 and proposals for unemployed Russian Federation

7 weapons scientists and technicians, are making an

8 important contribution in ensuring that knowledge

9 related to weapons of mass destruction remains be10 yond the reach of terrorists and weapons-proliferating

11 states; and

12 (4) increased spending and investment by the

13 United States private sector on nonproliferation ef14 forts in the independent states of the former Soviet

15 Union require the establishment of a coordinating

16 body to ensure that United States public and private

17 efforts are not in conflict, and to ensure that public

18 spending on efforts by the independent states of the

19 former Soviet Union is maximized to ensure effi20 ciency and further United States national security

21 interests.
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1 SEC. 333. INDEPENDENT STATES OF THE FORMER SOVIET

2 UNION DEFINED.

3 In this subtitle, the term ‘‘independent states of the

4 former Soviet Union’’ has the meaning given the term in

5 section 3 of the FREEDOM Support Act (22 U.S.C. 5801).

6 SEC. 334. ESTABLISHMENT OF COMMITTEE ON NON7 PROLIFERATION ASSISTANCE TO THE INDE8 PENDENT STATES OF THE FORMER SOVIET

9 UNION.

10 (a) ESTABLISHMENT.—There is established within the

11 executive branch of the Government an interagency com12 mittee known as the ‘‘Committee on Nonproliferation As13 sistance to the Independent States of the Former Soviet

14 Union’’ (in this subtitle referred to as the ‘‘Committee’’).

15 (b) MEMBERSHIP.—

16 (1) IN GENERAL.—The Committee shall be com17 posed of five members, as follows:

18 (A) A representative of the Department of

19 State designated by the Secretary of State.

20 (B) A representative of the Department of

21 Energy designated by the Secretary of Energy.

22 (C) A representative of the Department of

23 Defense designated by the Secretary of Defense.

24 (D) A representative of the Department of

25 Commerce designated by the Secretary of Com26 merce.
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1 (E) A representative of the Assistant to the

2 President for National Security Affairs des3 ignated by the Assistant to the President.

4 (2) LEVEL OF REPRESENTATION.—The Secretary

5 of a department named in subparagraph (A), (B),

6 (C), or (D) of paragraph (1) shall designate as the de7 partment’s representative an official of that depart8 ment who is not below the level of an Assistant Sec9 retary of the department.

10 (c) CHAIR.—The representative of the Assistant to the

11 President for National Security Affairs shall serve as Chair

12 of the Committee. The Chair may invite the head of any

13 other department or agency of the United States to des14 ignate a representative of that department or agency to par15 ticipate from time to time in the activities of the Com16 mittee.

17 SEC. 335. DUTIES OF THE COMMITTEE.

18 (a) IN GENERAL.—The Committee shall have primary

19 continuing responsibility within the executive branch of the

20 Government for—

21 (1) monitoring United States nonproliferation

22 efforts in the independent states of the former Soviet

23 Union; and

24 (2) coordinating the implementation of United

25 States policy with respect to such efforts.
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1 (b) DUTIES SPECIFIED.—In carrying out the respon2 sibilities described in subsection (a), the Committee shall—

3 (1) arrange for the preparation of analyses on

4 the issues and problems relating to coordination with5 in and among United States departments and agen6 cies on nonproliferation efforts of the independent

7 states of the former Soviet Union;

8 (2) arrange for the preparation of analyses on

9 the issues and problems relating to coordination be10 tween the United States public and private sectors on

11 nonproliferation efforts in the independent states of

12 the former Soviet Union, including coordination be13 tween public and private spending on nonprolifera14 tion programs of the independent states of the former

15 Soviet Union and coordination between public spend16 ing and private investment in defense conversion ac17 tivities of the independent states of the former Soviet

18 Union;

19 (3) provide guidance on arrangements that will

20 coordinate, de-conflict, and maximize the utility of

21 United States public spending on nonproliferation

22 programs of the independent states of the former So23 viet Union to ensure efficiency and further United

24 States national security interests;
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1 (4) encourage companies and nongovernmental

2 organizations involved in nonproliferation efforts of

3 the independent states of the former Soviet Union to

4 voluntarily report these efforts to the Committee;

5 (5) arrange for the preparation of analyses on

6 the issues and problems relating to the coordination

7 between the United States and other countries with

8 respect to nonproliferation efforts in the independent

9 states of the former Soviet Union; and

10 (6) consider, and make recommendations to the

11 President and Congress with respect to, proposals for

12 new legislation or regulations relating to United

13 States nonproliferation efforts in the independent

14 states of the former Soviet Union as may be nec15 essary.

16 SEC. 336. ADMINISTRATIVE SUPPORT.

17 All United States departments and agencies shall pro18 vide, to the extent permitted by law, such information and

19 assistance as may be requested by the Committee in car20 rying out its functions and activities under this subtitle.

21 SEC. 337. CONFIDENTIALITY OF INFORMATION.

22 Information which has been submitted or received in

23 confidence shall not be publicly disclosed, except to the ex24 tent required by law, and such information shall be used
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1 by the Committee only for the purpose of carrying out the

2 functions and activities set forth in this subtitle.

3 SEC. 338. STATUTORY CONSTRUCTION.

4 Nothing in this subtitle—

5 (1) applies to the data-gathering, regulatory, or

6 enforcement authority of any existing United States

7 department or agency over nonproliferation efforts in

8 the independent states of the former Soviet Union,

9 and the review of those efforts undertaken by the Com10 mittee shall not in any way supersede or prejudice

11 any other process provided by law; or

12 (2) applies to any activity that is reportable

13 pursuant to title V of the National Security Act of

14 1947 (50 U.S.C. 413 et seq.).

15 TITLE IV—EXPEDITING THE MU16 NITIONS LICENSING PROCESS

17 SEC. 401. LICENSE OFFICER STAFFING.

18 (a) FUNDING.—Of the amounts authorized to be ap19 propriated under the appropriations account entitled ‘‘DIP20 LOMATIC AND CONSULAR PROGRAMS’’ for fiscal years 2002

21 and 2003, not less than $10,000,000 shall be made available

22 each such fiscal year for the Office of Defense Trade Controls

23 of the Department of State for salaries and expenses.

24 (b) ASSIGNMENT OF LICENSE REVIEW OFFICERS.—Ef25 fective January 1, 2002, the Secretary shall assign to the
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1 Office of Defense Trade Controls of the Department of State

2 a sufficient number of license review officers to ensure that

3 the average weekly caseload for each officer does not exceed

4 40.

5 (c) DETAILEES.—For the purpose of expediting license

6 reviews, the Secretary of Defense should ensure that 10 mili7 tary officers are continuously detailed to the Office of De8 fense Trade Controls of the Department of State on a non9 reimbursable basis.

10 SEC. 402. FUNDING FOR DATABASE AUTOMATION.

11 Of the amounts authorized to be appropriated under

12 the appropriations account entitled ‘‘CAPITAL INVESTMENT

13 FUND’’ for fiscal years 2002 and 2003, not less than

14 $4,000,000 shall be made available each such fiscal year

15 for the Office of Defense Trade Controls of the Department

16 of State for the modernization of information management

17 systems.

18 SEC. 403. INFORMATION MANAGEMENT PRIORITIES.

19 (a) OBJECTIVE.—The Secretary shall establish a se20 cure, Internet-based system for the filing and review of ap21 plications for export of Munitions List items.

22 (b) ESTABLISHMENT OF AN ELECTRONIC SYSTEM.—

23 Of the amounts made available pursuant to section 402,

24 not less than $3,000,000 each such fiscal year shall be made
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1 available to fully automate the Defense Trade Application

2 System, and to ensure that the system—

3 (1) is a secure, electronic system for the filing

4 and review of Munitions List license applications;

5 (2) is accessible by United States companies

6 through the Internet for the purpose of filing and

7 tracking their Munitions List license applications;

8 and

9 (3) is capable of exchanging data with—

10 (A) the Export Control Automated Support

11 System of the Department of Commerce;

12 (B) the Foreign Disclosure and Technology

13 Information System and the USXPORTS sys14 tems of the Department of Defense;

15 (C) the Export Control System of the Cen16 tral Intelligence Agency; and

17 (D) the Proliferation Information Network

18 System of the Department of Energy.

19 (c) MUNITIONS LIST DEFINED.—In this section, the

20 term ‘‘Munitions List’’ means the United States Munitions

21 List of defense articles and defense services controlled under

22 section 38 of the Arms Export Control Act (22 U.S.C. 2778).
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1 SEC. 404. IMPROVEMENTS TO THE AUTOMATED EXPORT

2 SYSTEM.

3 (a) CONTRIBUTION TO THE AUTOMATED EXPORT SYS4 TEM.—Not less than $250,000 of the amounts provided

5 under section 302 for each fiscal year shall be available for

6 the purpose of—

7 (1) providing the Department of State with full

8 access to the Automated Export System;

9 (2) ensuring that the system is modified to meet

10 the needs of the Department of State, if such modi11 fications are consistent with the needs of other United

12 States Government agencies; and

13 (3) providing operational support.

14 (b) MANDATORY FILING.—The Secretary of Commerce,

15 with the concurrence of the Secretary of State and the Sec16 retary of Treasury, shall publish regulations in the Federal

17 Register to require, upon the effective date of those regula18 tions, that all persons who are required to file export infor19 mation under chapter 9 of title 13, United States Code, to

20 file such information through the Automated Export Sys21 tem.

22 (c) REQUIREMENT FOR INFORMATION SHARING.—The

23 Secretary shall conclude an information-sharing arrange24 ment with the heads of United States Customs Service and

25 the Census Bureau—
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1 (1) to allow the Department of State to access

2 information on controlled exports made through the

3 United States Postal Service; and

4 (2) to adjust the Automated Export System to

5 parallel information currently collected by the De6 partment of State.

7 (d) SECRETARY OF TREASURY FUNCTIONS.—Section

8 303 of title 13, United States Code, is amended by striking

9 ‘‘, other than by mail,’’.

10 (e) FILING EXPORT INFORMATION, DELAYED FILINGS,

11 PENALTIES FOR FAILURE TO FILE.—Section 304 of title

12 13, United States Code, is amended—

13 (1) in subsection (a)—

14 (A) in the first sentence, by striking ‘‘the

15 penal sum of $1,000’’ and inserting ‘‘a penal

16 sum of $10,000’’; and

17 (B) in the third sentence, by striking ‘‘a

18 penalty not to exceed $100 for each day’s delin19 quency beyond the prescribed period, but not

20 more than $1,000,’’ and inserting ‘‘a penalty not

21 to exceed $1,000 for each day’s delinquency be22 yond the prescribed period, but not more than

23 $10,000 per violation’’;

24 (2) by redesignating subsection (b) as subsection

25 (c); and
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1 (3) by inserting after subsection (a) the fol2 lowing:

3 ‘‘(b) Any person, other than a person described in sub4 section (a), required to submit export information, shall file

5 such information in accordance with any rule, regulation,

6 or order issued pursuant to this chapter. In the event any

7 such information or reports are not filed within such pre8 scribed period, the Secretary of Commerce (and officers of

9 the Department of Commerce designated by the Secretary)

10 may impose a civil penalty not to exceed $1,000 for each

11 day’s delinquency beyond the prescribed period, but not

12 more than $10,000 per violation.’’.

13 (f) ADDITIONAL PENALTIES.—

14 (1) IN GENERAL.—Section 305 of title 13,

15 United States Code, is amended to read as follows:

16 ‘‘SEC. 305. PENALTIES FOR UNLAWFUL EXPORT INFORMA17 TION ACTIVITIES.

18 ‘‘(a) CRIMINAL PENALTIES.—(1) Any person who

19 knowingly fails to file or knowingly submits false or mis20 leading export information through the Shippers Export

21 Declaration (SED) (or any successor document) or the

22 Automated Export System (AES) shall be subject to a fine

23 not to exceed $10,000 per violation or imprisonment for not

24 more than 5 years, or both.
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1 ‘‘(2) Any person who knowingly reports any informa2 tion on or uses the SED or the AES to further any illegal

3 activity shall be subject to a fine not to exceed $10,000 per

4 violation or imprisonment for not more than 5 years, or

5 both.

6 ‘‘(3) Any person who is convicted under this subsection

7 shall, in addition to any other penalty, be subject to for8 feiting to the United States—

9 ‘‘(A) any of that person’s interest in, security of,

10 claim against, or property or contractual rights of

11 any kind in the goods or tangible items that were the

12 subject of the violation;

13 ‘‘(B) any of that person’s interest in, security of,

14 claim against, or property or contractual rights of

15 any kind in tangible property that was used in the

16 export or attempt to export that was the subject of the

17 violation; and

18 ‘‘(C) any of that person’s property constituting,

19 or derived from, any proceeds obtained directly or in20 directly as a result of the violation.

21 ‘‘(b) CIVIL PENALTIES.—The Secretary (and officers of

22 the Department of Commerce specifically designated by the

23 Secretary) may impose a civil penalty not to exceed $10,000

24 per violation on any person violating the provisions of this

25 chapter or any rule, regulation, or order issued thereunder,
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1 except as provided in section 304. Such penalty may be in

2 addition to any other penalty imposed by law.

3 ‘‘(c) CIVIL PENALTY PROCEDURE.—(1) When a civil

4 penalty is sought for a violation of this section or of section

5 304, the charged party is entitled to receive a formal com6 plaint specifying the charges and, at his or her request, to

7 contest the charges in a hearing before an administrative

8 law judge. Any such hearing shall be conducted in accord9 ance with sections 556 and 557 of title 5, United States

10 Code.

11 ‘‘(2) If any person fails to pay a civil penalty imposed

12 under this chapter, the Secretary may ask the Attorney

13 General to commence a civil action in an appropriate dis14 trict court of the United States to recover the amount im15 posed (plus interest at currently prevailing rates from the

16 date of the final order). No such action may be commenced

17 more than 5 years after the order imposing the civil penalty

18 becomes final. In such action, the validity, amount, and

19 appropriateness of such penalty shall not be subject to re20 view.

21 ‘‘(3) The Secretary may remit or mitigate any pen22 alties imposed under paragraph (1) if, in his or her

23 opinion—

24 ‘‘(A) the penalties were incurred without willful neg25 ligence or fraud; or
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1 ‘‘(B) other circumstances exist that justify a remission

2 or mitigation.

3 ‘‘(4) If, pursuant to section 306, the Secretary dele4 gates functions under this section to another agency, the

5 provisions of law of that agency relating to penalty assess6 ment, remission or mitigation of such penalties, collection

7 of such penalties, and limitations of actions and com8 promise of claims, shall apply.

9 ‘‘(5) Any amount paid in satisfaction of a civil pen10 alty imposed under this section or section 304 shall be de11 posited into the general fund of the Treasury and credited

12 as miscellaneous receipts.

13 ‘‘(d) ENFORCEMENT.—(1) The Secretary of Commerce

14 may designate officers or employees of the Office of Export

15 Enforcement to conduct investigations pursuant to this

16 chapter. In conducting such investigations, those officers or

17 employees may, to the extent necessary or appropriate to

18 the enforcement of this chapter, exercise such authorities as

19 are conferred upon them by other laws of the United States,

20 subject to policies and procedures approved by the Attorney

21 General.

22 ‘‘(2) The Commissioner of Customs may designate offi23 cers or employees of the Customs Service to enforce the pro24 visions of this chapter, or to conduct investigations pursu25 ant to this chapter.
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1 ‘‘(e) REGULATIONS.—The Secretary of Commerce shall

2 promulgate regulations for the implementation and enforce3 ment of this section.

4 ‘‘(f) EXEMPTION.—The criminal fines provided for in

5 this section are exempt from the provisions of section 3571

6 of title 18, United States Code.’’.

7 (2) CLERICAL AMENDMENT.—The table of sec8 tions at the beginning of chapter 9 of title 13, United

9 States Code, is amended by striking the item relating

10 to section 305 and inserting the following:

‘‘305. Penalties for unlawful export information activities.’’.

11 SEC. 405. ADJUSTMENT OF THRESHOLD AMOUNTS FOR

12 CONGRESSIONAL REVIEW PURPOSES.

13 The Arms Export Control Act is amended—

14 (1) in section 3(d) (22 U.S.C. 2753(d))—

15 (A) in paragraphs (1) and (3)(A), by strik16 ing ‘‘The President may not’’ and inserting

17 ‘‘Subject to paragraph (5), the President may

18 not’’; and

19 (B) by adding at the end of the following

20 new paragraph:

21 ‘‘(5) In the case of a transfer to a member country

22 of the North Atlantic Treaty Organization (NATO) or Aus23 tralia, Japan, or New Zealand that does not authorize a

24 new sales territory that includes any country other than

25 such countries, the limitations on consent of the President
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1 set forth in paragraphs (1) and (3)(A) shall apply only if

2 the transfer is—

3 ‘‘(A) a transfer of major defense equipment val4 ued (in terms of its original acquisition cost) at

5 $25,000,000 or more; or

6 ‘‘(B) a transfer of defense articles or defense serv7 ices valued (in terms of its original acquisition cost)

8 at $100,000,000 or more).’’;

9 (2) in section 36 (22 U.S.C. 2776)—

10 (A) in subsection (b)—

11 (i) in paragraph (1), by striking ‘‘(1)

12 In the case of’’ and inserting ‘‘(1) Subject to

13 paragraph (6), in the case of’’;

14 (ii) in paragraph (5)(C), by striking

15 ‘‘(C) If’’ and inserting ‘‘(C) Subject to

16 paragraph (6), if’’; and

17 (iii) by adding at the end of the fol18 lowing new paragraph:

19 ‘‘(6) The limitation in paragraph (1) and the require20 ment in paragraph (5)(C) shall apply in the case of a letter

21 of offer to sell to a member country of the North Atlantic

22 Treaty Organization (NATO) or Australia, Japan, or New

23 Zealand that does not authorize a new sales territory that

24 includes any country other than such countries only if the

25 letter of offer involves—
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1 ‘‘(A) sale of major defense equipment under this

2 Act for, or enhancement or upgrade of major defense

3 equipment at a cost of, $25,000,000 or more, as the

4 case may be; and

5 ‘‘(B) sale of defense articles or services for, or en6 hancement or upgrade of defense articles or services at

7 a cost of, $100,000,000 or more, as the case may be;

8 or

9 ‘‘(C) sale of design and construction services for,

10 or enhancement or upgrade of design and construc11 tion services at a cost of, $300,000,000 or more, as the

12 case may be.’’; and

13 (B) in subsection (c)—

14 (i) in paragraph (1), by striking ‘‘(1)

15 In the case of’’ and inserting ‘‘(1) Subject to

16 paragraph (5), in the case of’’; and

17 (ii) by adding at the end the following

18 new paragraph:

19 ‘‘(5) In the case of an application by a person (other

20 than with regard to a sale under section 21 or 22 of this

21 Act) for a license for the export to a member country of

22 the North Atlantic Treaty Organization (NATO) or Aus23 tralia, Japan, or New Zealand that does not authorize a

24 new sales territory that includes any country other than

25 such countries, the limitation on the issuance of the license
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1 set forth in paragraph (1) shall apply only if the license

2 is for export of—

3 ‘‘(A) major defense equipment sold under a con4 tract in the amount of $25,000,000 or more; or

5 ‘‘(B) defense articles or defense services sold

6 under a contract in the amount of $100,000,000 or

7 more.’’; and

8 (3) in section 63(a) (22 U.S.C. 2796b(a))—

9 (A) by striking ‘‘In the case of’’ and insert10 ing ‘‘(1) Subject to paragraph (2), in the case

11 of’’; and

12 (B) by adding at the end the following new

13 paragraph:

14 ‘‘(2) In the case of an agreement described in para15 graph (1) that is entered into with a member country of

16 the North Atlantic Treaty Organization (NATO) or Aus17 tralia, Japan, or New Zealand, the limitation in para18 graph (1) shall apply only if the agreement involves a lease

19 or loan of—

20 ‘‘(A) major defense equipment valued (in terms

21 of its replacement cost less any depreciation in its

22 value) at $25,000,000 or more; or

23 ‘‘(B) defense articles valued (in terms of their re24 placement cost less any depreciation in their value) at

25 $100,000,000 or more.’’.
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1 SEC. 406. PERIODIC NOTIFICATION OF PENDING APPLICA2 TIONS FOR EXPORT LICENSES.

3 The Secretary shall submit, on a biannual basis, to

4 the appropriate committees of Congress a report

5 identifying—

6 (1) each outstanding application for a license to

7 export under section 38 of the Arms Export Control

8 Act for which final administrative action has been

9 withheld for longer than 180 days; and

10 (2) the referral status of each such application

11 and any other relevant information.

12 TITLE V—NATIONAL SECURITY

13 ASSISTANCE STRATEGY

14 SEC. 501. ESTABLISHMENT OF THE STRATEGY.

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

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

17 connection with submission of congressional presentation

18 materials for the foreign operations appropriations budget

19 request, the Secretary shall submit to the appropriate com20 mittees of Congress a report setting forth a National Secu21 rity Assistance Strategy for the United States.

22 (b) ELEMENTS OF THE STRATEGY.—The National Se23 curity Assistance Strategy shall—

24 (1) set forth a 5-year plan for security assistance

25 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 Defense

4 and the Chairman of the Joint Chiefs of Staff;

5 (4) identify overarching security assistance objec6 tives, including identification of the role that specific

7 security assistance programs will play in achieving

8 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 both

14 primary and secondary objectives;

15 (7) discuss how specific types of assistance, such

16 as foreign military financing and international mili17 tary education and training, will be combined at the

18 country level to achieve United States objectives; and

19 (8) detail, with respect to each of the paragraphs

20 (1) through (7), how specific types of assistance pro21 vided pursuant to the Arms Export Control Act and

22 Foreign Assistance Act of 1961 are coordinated with

23 United States assistance programs administered by

24 the Department of Defense and other agencies.
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1 (c) COVERED ASSISTANCE.—The National Security

2 Assistance Strategy shall cover assistance provided under—

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

4 (22 U.S.C. 2763);

5 (2) chapter 5 of part II of the Foreign Assistance

6 Act of 1961 (22 U.S.C. 2347 et seq.); and

7 (3) section 516 of the Foreign Assistance Act of

8 1961 (22 U.S.C. 2321i).

9 SEC. 502. SECURITY ASSISTANCE SURVEYS.

10 (a) UTILIZATION.—The Secretary shall utilize security

11 assistance surveys in preparation of the National Security

12 Assistance Strategy required pursuant to section 501 of this

13 Act.

14 (b) FUNDING.—Of the amounts made available for fis15 cal year 2002 under section 23 of the Arms Export Control

16 Act (22 U.S.C. 2763), $2,000,000 is authorized to be avail17 able to the Secretary to conduct security assistance surveys,

18 or to request such a survey, on a reimbursable basis, by

19 the Department of Defense or other United States Govern20 ment agencies. Such surveys shall be conducted consistent

21 with the requirements of section 26 of the Arms Export Con22 trol Act.
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1 TITLE VI—MISCELLANEOUS

2 PROVISIONS

3 SEC. 601. NUCLEAR AND MISSILE NONPROLIFERATION IN

4 SOUTH ASIA.

5 (a) UNITED STATES POLICY.—It shall be the policy

6 of the United States, consistent with its obligations under

7 the Treaty on the Non-Proliferation of Nuclear Weapons,

8 to encourage and work with the governments of India and

9 Pakistan to achieve the following objectives by September

10 30, 2003:

11 (1) Continuation of a nuclear testing morato12 rium.

13 (2) Commitment not to deploy nuclear weapons.

14 (3) Agreement by both governments to bring

15 their export controls in line with the guidelines and

16 requirements of the Nuclear Suppliers Group.

17 (4) Agreement by both governments to bring

18 their export controls in line with the guidelines and

19 requirements of the Zangger Committee.

20 (5) Agreement by both governments to bring

21 their export controls in line with the guidelines, re22 quirements, and annexes of the Missile Technology

23 Control Regime.

24 (6) Establishment of a modern, effective system

25 to protect and secure nuclear devices and materiel
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1 from unauthorized use, accidental employment, theft,

2 espionage, misuse, or abuse.

3 (7) Establishment of a modern, effective system

4 to control the export of sensitive dual-use items, tech5 nology, technical information, and materiel that can

6 be used in the design, development, or production of

7 weapons of mass destruction and ballistic missiles.

8 (8) Conduct of bilateral meetings between Indian

9 and Pakistani senior officials to discuss security

10 issues, establish confidence building measures, and in11 crease transparency with regard to nuclear policies,

12 programs, stockpiles, capabilities, and delivery sys13 tems.

14 (b) REPORT.—Not later than March 1, 2003, the Presi15 dent shall submit to the appropriate committees of Congress

16 a report describing United States efforts in pursuit of the

17 objectives listed in subsection (a), the progress made toward

18 the achievement of those objectives, and the likelihood that

19 each objective will be achieved by September 30, 2003.

20 SEC. 602. REAL-TIME PUBLIC AVAILABILITY OF RAW SEIS21 MOLOGICAL DATA.

22 The head of the Air Force Technical Applications Cen23 ter shall make available to the public, immediately upon

24 receipt or as soon after receipt as is possible, all raw seismo25 logical data provided to the United States Government by
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1 any international monitoring organization that is directly

2 responsible for seismological monitoring.

3 SEC. 603. DETAILING UNITED STATES GOVERNMENTAL PER4 SONNEL TO INTERNATIONAL ARMS CONTROL

5 AND NONPROLIFERATION ORGANIZATIONS.

6 (a) IN GENERAL.—The Secretary, in consultation with

7 the Secretaries of Defense and Energy and the heads of other

8 relevant United States departments and agencies, as appro9 priate, shall develop measures to improve the process by

10 which United States Government personnel may be detailed

11 to international arms control and nonproliferation organi12 zations without adversely affecting the pay or career ad13 vancement of such personnel.

14 (b) REPORT REQUIRED.—Not later than May 1, 2002,

15 the Secretary shall submit a report to the Committee on

16 Foreign Relations of the Senate and the Committee on

17 International Relations of the House of Representatives set18 ting forth the measures taken under subsection (a).

19 SEC. 604. DIPLOMATIC PRESENCE OVERSEAS.

20 (a) PURPOSE.—The purpose of this section is to—

21 (1) elevate the stature given United States diplo22 matic initiatives relating to nonproliferation and po23 litical-military issues; and

24 (2) develop a group of highly specialized, tech25 nical experts with country expertise capable of ad-
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1 ministering the nonproliferation and political-mili2 tary affairs functions of the Department of State.

3 (b) AUTHORITY.—To carry out the purposes of sub4 section (a), the Secretary is authorized to establish the posi5 tion of Counselor for Nonproliferation and Political Mili6 tary Affairs in United States diplomatic missions overseas

7 to be filled by individuals who are career Civil Service offi8 cers or Foreign Service officers committed to follow-on as9 signments in the Nonproliferation or Political Military Af10 fairs Bureaus of the Department of State.

11 (c) TRAINING.—After being selected to serve as Coun12 selor, any person so selected shall spend not less than 10

13 months in language training courses at the Foreign Service

14 Institute, or in technical courses administered by the De15 partment of Defense, the Department of Energy, or other

16 appropriate departments and agencies of the United States,

17 except that such requirement for training may be waived

18 by the Secretary.

19 SEC. 605. PROTECTION AGAINST AGRICULTURAL BIOTER20 RORISM.

21 Of funds made available to carry out programs under

22 the Foreign Assistance Act of 1961, $1,500,000 may be

23 made available to North Carolina State University for the

24 purpose of fingerprinting crop and livestock pathogens in

25 order to enhance the ability of the United States Govern-
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1 ment to detect new strains, determine their origin, and to

2 facilitate research in pathogen epidemiology.

3 SEC. 606. COMPLIANCE WITH THE CHEMICAL WEAPONS

4 CONVENTION.

5 (a) FINDINGS.—Congress makes the following findings:

6 (1) On April 24, 1997, the Senate provided its

7 advice and consent to ratification of the Chemical

8 Weapons Convention subject to the condition that no

9 sample collected in the United States pursuant to the

10 Convention would be transferred for analysis to any

11 laboratory outside the territory of the United States.

12 (2) Congress enacted the same condition into law

13 as section 304(f)(1) of the Chemical Weapons Conven14 tion Implementation Act of 1998 (22 U.S.C.

15 6724(f)(1)).

16 (3) Part II, paragraph 57, of the Verification

17 Annex of the Convention requires that all samples

18 taken during a challenge inspection under the Con19 vention shall be analyzed by at least two laboratories

20 that have been designated as capable of conducting

21 such testing by the OPCW.

22 (4) The only United States laboratory currently

23 designated by the OPCW is the United States Army

24 Edgewood Forensic Science Laboratory.
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1 (5) In order to meet the requirements of condi2 tion (18) of the resolution of ratification of the Chem3 ical Weapons Convention, and section 304 of the

4 Chemical Weapons Convention Implementation Act of

5 1998 (22 U.S.C. 6724), the United States must pos6 sess, at a minimum, a second OPCW-designated lab7 oratory.

8 (6) The possession of a second laboratory is nec9 essary in view of the potential for a challenge inspec10 tion to be initiated against the United States by a

11 foreign nation.

12 (7) To qualify as a designated laboratory, a lab13 oratory must be certified under ISO Guide 25 or a

14 higher standard, and complete three proficiency tests.

15 The laboratory must have the full capability to handle

16 substances listed on Schedule 1 of the Annex on

17 Schedules of Chemicals of the Chemical Weapons Con18 vention. In order to handle such substances in the

19 United States, a laboratory also must operate under

20 a bailment agreement with the United States Army.

21 (8) Several existing United States commercial

22 laboratories have approved quality control systems,

23 already possess bailment agreements with the United

24 States Army, and have the capabilities necessary to

25 obtain OPCW designation.
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1 (9) In order to bolster the legitimacy of United

2 States analysis of samples taken on its national terri3 tory, it is preferable that the second designated lab4 oratory is not a United States Government facility.

5 Further, it is not cost-effective to build and equip an6 other Government laboratory to meet OPCW designa7 tion standards when such capability already exists in

8 the private sector.

9 (b) ESTABLISHMENT OF SECOND DESIGNATED LAB10 ORATORY.—

11 (1) DIRECTIVE.—Not later than February 1,

12 2002, the United States National Authority, as des13 ignated under section 101 of the Chemical Weapons

14 Convention Implementation Act of 1998 (22 U.S.C.

15 6711), shall select, through competitive procedures, a

16 commercial laboratory within the United States to

17 pursue designation by the OPCW.

18 (2) DELEGATION.—The National Authority may

19 delegate the authority and administrative responsi20 bility for carrying out paragraph (1) to one or more

21 of the heads of the agencies described in section

22 101(b)(2) of the Chemical Weapons Convention Imple23 mentation Act of 1998 (22 U.S.C. 6711(b)(2)).

24 (3) REPORT.—Not later than March 1, 2002, the

25 National Authority shall submit to the appropriate
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1 committees of Congress a report detailing a plan for

2 securing OPCW designation of a third United States

3 laboratory by December 1, 2003.

4 (c) DEFINITIONS.—In this section:

5 (1) CHEMICAL WEAPONS CONVENTION.—The

6 term ‘‘Chemical Weapons Convention’’ means the

7 Convention on the Prohibition of Development, Pro8 duction, Stockpiling and Use of Chemical Weapons

9 and on Their Destruction, Opened for Signature and

10 Signed by the United States at Paris on January 13,

11 1993, including the following protocols and memo12 randum of understanding:

13 (A) The Annex on Chemicals.

14 (B) The Annex on Implementation and

15 Verification.

16 (C) The Annex on the Protection of Con17 fidential Information.

18 (D) The Resolution Establishing the Pre19 paratory Commission for the Organization for

20 the Prohibition of Chemical Weapons.

21 (E) The Text on the Establishment of a Pre22 paratory Commission.

23 (2) OPCW.—The term ‘‘OPCW’’ means the Or24 ganization for the Prohibition of Chemical Weapons

25 established under the Convention.
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1 TITLE VII—AUTHORITY TO

2 TRANSFER NAVAL VESSELS

3 SEC. 701. AUTHORITY TO TRANSFER NAVAL VESSELS TO

4 CERTAIN FOREIGN COUNTRIES.

5 (a) AUTHORITY TO TRANSFER.—

6 (1) BRAZIL.—The President is authorized to

7 transfer to the Government of Brazil the ‘‘Newport’’

8 class tank landing ship Peoria (LST1183). Such

9 transfer shall be on a sale basis under section 21 of

10 the Arms Export Control Act (22 U.S.C. 2761).

11 (2) POLAND.—The President is authorized to

12 transfer to the Government of Poland the ‘‘Oliver

13 Hazard Perry’’ class guided missile frigate Wads14 worth (FFG 9). Such transfer shall be on a grant

15 basis under section 516 of the Foreign Assistance Act

16 of 1961 (22 U.S.C. 2321j).

17 (3) TURKEY.—The President is authorized to

18 transfer to the Government of Turkey the ‘‘Oliver

19 Hazard Perry’’ class guided missile frigates Estocin

20 (FFG 15) and Samuel Eliot Morrison (FFG 13).

21 Each such transfer shall be on a sale basis under sec22 tion 21 of the Arms Export Control Act (22 U.S.C.

23 2761). The President is further authorized to transfer

24 to the Government of Turkey the ‘‘Knox’’ class frigates

25 Capadanno (FF 1093), Thomas C. Hart (FF 1092),
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1 Donald B. Beary (FF 1085), McCandless (FF 1084),

2 Reasoner (FF 1063), and Bowen (FF 1079). The

3 transfer of these 6 ‘‘Knox’’ class frigates shall be on

4 a grant basis under section 516 of the Foreign Assist5 ance Act of 1961 (22 U.S.C. 2321j).

6 (4) TAIWAN.—The President is authorized to

7 transfer to the Taipei Economic and Cultural Rep8 resentative Office in the United States (which is the

9 Taiwan instrumentality designated pursuant to sec10 tion 10(a) of the Taiwan Relations Act) the ‘‘Kidd’’

11 class guided missile destroyers Kidd (DDG 993),

12 Callaghan (DDG 994), Scott (DDG 995), and Chan13 dler (DDG 996). The transfer of these 4 ‘‘Kidd’’ class

14 guided missile destroyers shall be on a sale basis

15 under section 21 of the Arms Export Control Act (22

16 U.S.C. 2761).

17 (b) GRANTS NOT COUNTED IN ANNUAL TOTAL OF

18 TRANSFERRED EXCESS DEFENSE ARTICLES.—The value of

19 a vessel transferred to another country on a grant basis

20 under section 516 of the Foreign Assistance Act of 1961 (22

21 U.S.C. 2321j) pursuant to authority provided by subsection

22 (a) shall not be counted for the purposes of subsection (g)

23 of that section in the aggregate value of excess defense arti24 cles transferred to countries under that section in any fiscal

25 year.
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1 (c) COSTS OF TRANSFERS.—Notwithstanding section

2 516(e)(1) of the Foreign Assistance Act of 1961 (22 U.S.C.

3 2321j(e)(1)), any expense incurred by the United States in

4 connection with a transfer authorized to be made on a grant

5 basis under subsection (a) or (b) shall be charged to the

6 recipient.

7 (d) REPAIR AND REFURBISHMENT IN UNITED STATES

8 SHIPYARDS.—To the maximum extent practicable, the

9 President shall require, as a condition of the transfer of a

10 vessel under this section, that the country to which the vessel

11 is transferred have such repair or refurbishment of the vessel

12 as is needed, before the vessel joins the naval forces of that

13 country, performed at a United States Navy shipyard or

14 other shipyard located in the United States.

15 (e) EXPIRATION OF AUTHORITY.—The authority pro16 vided under subsection (a) shall expire at the end of the

17 2-year period beginning on the date of the enactment of this

18 Act.

Attest:

Secretary.

107TH CONGRESS

2D SESSION H. R. 1646

AMENDMENT