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(A) in subparagraph (A), by striking ‘‘one
or more of the major allies of the United
States’’ and inserting ‘‘any country or organiza-
tion referred to in subsection (a)(2)’’;
(B) in subparagraph (B), by striking
‘‘major allies of the United States or NATO or-
ganizations’’ and inserting ‘‘countries and orga-
nizations referred to in subsection (a)(2)’’;
(C) in subparagraph (C), by striking
‘‘major allies of the United States’’ and insert-
ing ‘‘countries and organizations referred to in
subsection (a)(2)’’; and
(D) in subparagraph (D), by striking
‘‘major allies of the United States’’ and insert-
ing ‘‘countries and organizations referred to in
subsection (a)(2)’’;
(5) paragraphs (1)(A) and (4)(A) of subsection
(g), by striking ‘‘major allies of the United States
and other friendly foreign countries’’ and inserting
‘‘countries referred to in subsection (a)(2)’’;
(6) in subsection (h), by striking ‘‘major allies
of the United States’’ and inserting ‘‘member na-
tions of the North Atlantic Treaty Organization,
major non-NATO allies, and other friendly foreign
countries’’; and
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(7) in subsection (i)—
(A) in paragraph (1), by striking ‘‘major
allies of the United States or NATO organiza-
tions’’ and inserting ‘‘countries and organiza-
tions referred to in subsection (a)(2)’’;
(B) by striking paragraph (2); and
(C) by redesignating paragraphs (3) and
(4) as paragraphs (2) and (3), respectively.
(b) NOTICE-AND-WAIT REQUIREMENT.—Subsection
(a) of such section is further amended by adding at the
end the following new paragraph:
‘‘(3) If such a memorandum of understanding (or
other formal agreement) is with a country referred to in
subparagraph (E) of paragraph (2), such memorandum
(or agreement) may go into effect only after the Secretary
submits to the Committees on Armed Services and on For-
eign Relations of the Senate and to the Committees on
Armed Services and on International Relations of the
House of Representatives a report with respect to the pro-
posed memorandum (or agreement) and a period of 30
days has passed after the report has been submitted.’’.
(c) DELEGATION
OF AUTHORITY TO DETERMINE
ELIGIBILITY OF PROJECTS.—Subsection (b)(2) of such
section is amended by striking ‘‘to the Deputy Secretary
of Defense’’ and all that follows through the period at the
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end and inserting ‘‘to the Deputy Secretary of Defense
and to one other official of the Department of Defense.’’.
(d) REVISION OF REQUIREMENT FOR ANNUAL RE-
PORT
ON ELIGIBLE COUNTRIES.—Subsection (f)(2) of
such section is amended to read as follows:
‘‘(2) Not later than January 1 of each year, the Sec-
retary of Defense shall submit to the Committees on
Armed Services and on Foreign Relations of the Senate
and to the Committees on Armed Services and on Inter-
national Relations of the House of Representatives a re-
port specifying—
‘‘(A) the countries that are eligible to partici-
pate in a cooperative project agreement under this
section; and
‘‘(B) the criteria used to determine the eligi-
bility of such countries.’’.
(e) CONFORMING AMENDMENTS.—(1) The heading
of such section is amended to read as follows:
‘‘§ 2350a. Cooperative research and development
agreements: NATO organizations; allied
and friendly foreign countries’’.
(2) The item relating to such section in the table of
sections at the beginning of subchapter II of chapter 138
of title 10, United States Code, is amended to read as
follows:
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‘‘2350a. Cooperative research and development agreements: NATO organiza-
tions; allied and friendly foreign countries.’’.
SEC. 1213. COOPERATIVE AGREEMENTS WITH FOREIGN
COUNTRIES AND INTERNATIONAL ORGANIZA-
TIONS FOR RECIPROCAL USE OF TEST FA-
CILITIES.
(a) AUTHORITY.—Subchapter II of chapter 138 of
title 10, United States Code, is amended by adding at the
end the following new section:
‘‘§ 2350l. Cooperative agreements for reciprocal use
of test facilities: foreign countries and
international organizations
‘‘(a) AUTHORITY.—The Secretary of Defense, with
the concurrence of the Secretary of State, may enter into
a memorandum of understanding (or other formal agree-
ment) with a foreign country or international organization
to provide for the testing, on a reciprocal basis, of defense
equipment (1) by the United States using test facilities
of that country or organization, and (2) by that country
or organization using test facilities of the United States.
‘‘(b) PAYMENT OF COSTS.—A memorandum or other
agreement under subsection (a) shall provide that, when
a party to the agreement uses a test facility of another
party to the agreement, the party using the test facility
is charged by the party providing the test facility in ac-
cordance with the following principles:
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‘‘(1) The user party shall be charged the
amount equal to the direct costs incurred by the pro-
vider party in furnishing test and evaluation services
by the providing party’s officers, employees, or gov-
ernmental agencies.
‘‘(2) The user party may also be charged indi-
rect costs relating to the use of the test facility, but
only to the extent specified in the memorandum or
other agreement.
‘‘(c) DETERMINATION OF INDIRECT COSTS; DELEGA-
TION OF AUTHORITY.—(1) The Secretary of Defense shall
determine the appropriateness of the amount of indirect
costs charged by the United States pursuant to subsection
(b)(2).
(2) The Secretary may delegate the authority under
paragraph (1) only to the Deputy Secretary of Defense
and to one other official of the Department of Defense.
‘‘(d) RETENTION OF FUNDS COLLECTED BY THE
UNITED
STATES.—Amounts collected by the United
States from a party using a test facility of the United
States pursuant to a memorandum or other agreement
under this section shall be credited to the appropriation
accounts from which the costs incurred by the United
States in providing such test facility were paid.
‘‘(e) DEFINITIONS.—In this section:
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‘‘(1) The term ‘direct cost’, with respect to the
use of a test facility pursuant to a memorandum or
other agreement under subsection (a)—
‘‘(A) means any item of cost that is easily
and readily identified to a specific unit of work
or output within the test facility where the use
occurred, that would not have been incurred if
such use had not occurred; and
‘‘(B) may include costs of labor, materials,
facilities, utilities, equipment, supplies, and any
other resources of the test facility that are con-
sumed or damaged in connection with—
‘‘(i) the use; or
‘‘(ii) the maintenance of the test facil-
ity for purposes of the use.
‘‘(2) The term ‘indirect cost’, with respect to
the use of a test facility pursuant to a memorandum
or other agreement under subsection (a)—
‘‘(A) means any item of cost that is not
easily and readily identified to a specific unit of
work or output within the test facility where the
use occurred; and
‘‘(B) may include general and administra-
tive expenses for such activities as supporting
base operations, manufacturing, supervision,
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procurement of office supplies, and utilities that
are accumulated costs allocated among several
users.
‘‘(3) The term ‘test facility’ means a range or
other facility at which testing of defense equipment
may be carried out.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such subchapter is amended by adding
at the end the following new item:
‘‘2350l. Cooperative agreements for reciprocal use of test facilities: foreign coun-
tries and international organizations.’’.
SEC. 1214. SENSE OF CONGRESS ON ALLIED DEFENSE
BURDENSHARING.
It is the sense of Congress that—
(1) the efforts of the President to increase de-
fense burdensharing by allied and friendly nations
deserve strong support; and
(2) host nation support agreements with those
nations in which United States military personnel
are assigned to permanent duty ashore should be ne-
gotiated consistent with section 1221(a)(1) of the
National Defense Authorization Act for Fiscal Year
1998 (Public Law 105–85; 50 U.S.C. 1541(a)(1)),
which sets forth a goal of obtaining from any such
host nation financial contributions that amount to
75 percent of the nonpersonnel costs incurred by the
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United States Government for stationing United
States military personnel in that nation.
Subtitle C—Reports
SEC. 1221. REPORT ON SIGNIFICANT SALES AND TRANS-
FERS OF MILITARY HARDWARE, EXPERTISE,
AND TECHNOLOGY TO THE PEOPLE’S REPUB-
LIC OF CHINA.
Section 1202 of the National Defense Authorization
Act for Fiscal Year 2000 (Public Law 106–65; 113 Stat.
781; 10 U.S.C. 113 note) is amended by adding at the
end the following new subsection:
‘‘(d) REPORT ON SIGNIFICANT SALES AND TRANS-
FERS TO CHINA.—(1) The report to be submitted under
this section not later than March 1, 2002, shall include
in a separate section a report describing any significant
sale or transfer of military hardware, expertise, and tech-
nology to the People’s Republic of China. The report shall
set forth the history of such sales and transfers since
1995, forecast possible future sales and transfers, and ad-
dress the implications of those sales and transfers for the
security of the United States and its friends and allies
in Asia.
‘‘(2) The report shall include analysis and forecasts
of the following matters related to military cooperation be-
tween selling states and the People’s Republic of China:
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‘‘(A) The extent in each selling state of govern-
ment knowledge, cooperation, or condoning of sales
or transfers of military hardware, expertise, or tech-
nology to the People’s Republic of China.
‘‘(B) An itemization of significant sales and
transfers of military hardware, expertise, or tech-
nology from each selling state to the People’s Re-
public of China that have taken place since 1995,
with a particular focus on command, control, com-
munications, and intelligence systems.
‘‘(C) Significant assistance by any selling state
to key research and development programs of China,
including programs for development of weapons of
mass destruction and delivery vehicles for such
weapons, programs for development of advanced
conventional weapons, and programs for develop-
ment of unconventional weapons.
‘‘(D) The extent to which arms sales by any
selling state to the People’s Republic of China are
a source of funds for military research and develop-
ment or procurement programs in the selling state.
‘‘(3) The report under paragraph (1) shall include,
with respect to each area of analysis and forecasts speci-
fied in paragraph (2)—
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‘‘(A) an assessment of the military effects of
such sales or transfers to entities in the People’s Re-
public of China;
‘‘(B) an assessment of the ability of the Peo-
ple’s Liberation Army to assimilate such sales or
transfers, mass produce new equipment, or develop
doctrine for use; and
‘‘(C) the potential threat of developments re-
lated to such effects on the security interests of the
United States and its friends and allies in Asia.’’.
SEC. 1222. REPEAL OF REQUIREMENT FOR REPORTING TO
CONGRESS ON MILITARY DEPLOYMENTS TO
HAITI.
Section 1232(b) of the National Defense Authoriza-
tion Act for Fiscal Year 2000 (Public Law 106–65; 113
Stat. 788; 50 U.S.C. 1541 note) is repealed.
SEC. 1223. REPORT BY COMPTROLLER GENERAL ON PROVI-
SION OF DEFENSE ARTICLES, SERVICES, AND
MILITARY EDUCATION AND TRAINING TO
FOREIGN COUNTRIES AND INTERNATIONAL
ORGANIZATIONS.
(a) STUDY.—The Comptroller General shall conduct
a study of the following:
(1) The benefits derived by each foreign coun-
try or international organization from the receipt of
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defense articles, defense services, or military edu-
cation and training provided after December 31,
1989, pursuant to the drawdown of such articles,
services, or education and training from the stocks
of the Department of Defense under section 506,
516, or 552 of the Foreign Assistance Act of 1961
(22 U.S.C. 2318, 2321j, or 2348a) or any other pro-
vision of law.
(2) Any benefits derived by the United States
from the provision of defense articles, defense serv-
ices, and military education and training described
in paragraph (1).
(3) The effect on the readiness of the Armed
Forces as a result of the provision by the United
States of defense articles, defense services, and mili-
tary education and training described in paragraph
(1).
(4) The cost to the Department of Defense with
respect to the provision of defense articles, defense
services, and military education and training de-
scribed in paragraph (1).
(b) REPORTS.—(1) Not later than April 15, 2002,
the Comptroller General shall submit to Congress an in-
terim report containing the results to that date of the
study conducted under subsection (a).
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(2) Not later than August 1, 2002, the Comptroller
General shall submit to Congress a final report containing
the results of the study conducted under subsection (a).
Passed the House of Representatives December 13,
2001.
Attest:
JEFF TRANDAHL,
Clerk.