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accounted for by the United Nations Special Com-
mission (UNSCOM) or the United Nations Moni-
toring, Verification and Inspection Commission 
(UNMOVIC). 
(2) 
CONGRESSIONAL
COMMITTEES
SPECI-
FIED.—The congressional committees referred to in 
paragraph (1) are—
(A) the Committee on International Rela-
tions and the Committee on Armed Services of 
the House of Representatives; and 
(B) the Committee on Foreign Relations 
and the Committee on Armed Services of the 
Senate. 
(b) CONTENTS.—The report required by subsection 
(a) shall include information on defense articles, defense 
services, and dual use goods and technology discovered in 
accordance with such subsection, including a description 
of such articles, services, and goods and technology by cat-
egory or type, quantity, country of origin (if known), man-
ufacturer (if known), date of acquisition (if known), and, 
in the case of dual use goods and technology, the use or 
intended use or deployment (if known) and whether the 
goods or technology are covered by any arms control 
agreement or nonproliferation arrangement to which the 
United States is a party.
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(c) FORM.—The report required by subsection (a) 
shall be transmitted in unclassified form to the maximum 
extent practicable, but may contain a classified annex if 
necessary. 
TITLE XII—STRENGTHENING 
MUNITIONS EXPORT CONTROLS 
SEC. 1201. CONTROL OF ITEMS ON MISSILE TECHNOLOGY 
CONTROL REGIME ANNEX. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that all proposals to export or transfer to foreign 
persons by other means, whether in the United States or 
abroad, and any other activities subject to regulation 
under section 38, 39, or 40 of the Arms Export Control 
Act, relating to items on the Missile Technology Control 
Regime Annex, should be accorded stringent control and 
scrutiny consistent with the purposes of section 71 of the 
Arms Export Control Act (22 U.S.C. 2797). 
(b) CONTROL OF ITEMS ON MTCR ANNEX.—The 
Secretary, in coordination with the Secretary of Com-
merce, the Attorney General, and the Secretary of De-
fense, shall ensure that all items on the MTCR Annex are 
subject to stringent control by the United States Govern-
ment pursuant to the International Traffic in Arms Regu-
lations and the Export Administration Regulations.
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(c) CERTIFICATION.—Not later than March 1 of each 
year, the Secretary, in coordination with the Secretary of 
Commerce, the Attorney General and the Secretary of De-
fense, shall prepare and submit to the appropriate con-
gressional committees a report that contains—
(1) a certification that the requirement of sub-
section (b) has been met for the prior year, or if the 
requirement has not been met, the reasons therefor; 
and 
(2) a description of the updated coverage, if 
any, of the regulations referred to in subsection (b) 
with respect to all items on the MTCR Annex and 
an explanation of any areas of overlap or omissions, 
if any, among the regulations. 
SEC. 1202. CERTIFICATIONS RELATING TO EXPORT OF CER-
TAIN DEFENSE ARTICLES AND SERVICES. 
Section 36(c) (22 U.S.C. 2776(c)) is amended—
(1) in the first sentence of paragraph (1), by 
inserting after ‘‘$1,000,000 or more’’ the following: 
‘‘, or, notwithstanding section 27(g) of this Act, for 
any special comprehensive authorization under sec-
tions 120–130 of title 22, Code of Federal Regula-
tions (commonly known as the ‘International Traffic 
in Arms Regulations’) for the export of defense arti-
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cles or defense services in an aggregate amount of 
$100,000,000 or more’’; 
(2) in paragraph (2)—
(A) by striking subparagraph (B); and 
(B) by redesignating subparagraph (C) as 
subparagraph (B); and 
(3) in the matter preceding subparagraph (A) 
of paragraph (5), by inserting ‘‘or paragraph (2)’’ 
after ‘‘paragraph (1)’’. 
SEC. 1203. NOTIFICATION REQUIREMENTS FOR TECHNICAL 
ASSISTANCE AND MANUFACTURING LICENS-
ING 
AGREEMENTS 
WITH 
NATO 
MEMBER 
COUNTRIES, AUSTRALIA, NEW ZEALAND, AND 
JAPAN. 
Section 36(d) (22 U.S.C. 2776(d)) is amended by 
adding at the end the following: 
‘‘(6) In the case of a commercial technical assistance 
or manufacturing license agreement with a member coun-
try of the North Atlantic Treaty Organization (NATO) 
or Australia, Japan, or New Zealand that does not author-
ize a new sales territory that includes any country other 
than such countries, the requirements contained in para-
graphs (2) and (4) shall apply only if—
‘‘(A) the agreement involves—
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‘‘(i) major defense equipment in the 
amount of $7,000,000 or more; or 
‘‘(ii) significant military equipment in the 
amount of $25,000,000 or more; and 
‘‘(B) the amount referred to in clause (i) or (ii) 
of subparagraph (A), as the case may be, includes 
the estimated value of all defense articles and de-
fense services to be manufactured or transferred 
throughout the duration of the approval period.’’. 
SEC. 1204. STRENGTHENING DEFENSE COOPERATION WITH 
AUSTRALIA AND THE UNITED KINGDOM. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that the expeditious consideration of munitions li-
cense applications that meet the policy and eligibility cri-
teria established in section 38 of the Arms Export Control 
Act (22 U.S.C. 2778) for export or transfer of defense 
items (as such term is defined in subsection (j)(4)(A) of 
such section) to Australia and the United Kingdom is fully 
consistent with United States security and foreign policy 
interests and the objectives of world peace and security. 
(b) ESTABLISHMENT OF FAST TRACK MUNITIONS 
LICENSING
FOR AUSTRALIA
AND
THE UNITED KING-
DOM.—Section 38(f) (22 U.S.C. 2778(f)) is amended by 
adding at the end the following:
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‘‘(4) In the absence of a binding bilateral agreement 
with the Government of Australia or the Government of 
the United Kingdom (as the case may be) that meets the 
requirements of paragraph (2) and subsection (j), the Sec-
retary of State shall ensure that any application submitted 
under this section for the export of defense items to Aus-
tralia or the United Kingdom (as the case may be) that 
meets all other requirements of this section (including re-
quirements relating to eligibility of parties to the trans-
action, the absence of risk of diversion to unauthorized 
end use and end users, and preservation of United States 
intelligence and law enforcement interests), and which are 
also transactions involving defense items that would be ex-
empt pursuant to sections 120–130 of title 22, Code of 
Federal Regulations (commonly known as the ‘Inter-
national Traffic in Arms Regulations’) from export licens-
ing or other written approvals if such items were items 
to be exported to Canada, are processed by the Depart-
ment of State not later than ten days after the date of 
receipt of the application without referral to any other 
Federal department or agency, except on an extraordinary 
basis upon receipt of a written request from the Attorney 
General, the Secretary of Homeland Security, the Director 
of Central Intelligence, or the Secretary of Defense.’’.
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SEC. 1205. TRAINING AND LIAISON FOR SMALL BUSI-
NESSES. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that it is increasingly important that the Secretary, 
in administering the licensing, registration, compliance, 
and other authorities contained in section 38 of the Arms 
Export Control Act (22 U.S.C. 2778), should provide up-
to-date training and other educational assistance to small 
businesses in the United States aerospace and defense in-
dustrial sector. 
(b) SMALL BUSINESS LIAISON.—Not later than 180 
days after the date of the enactment of this Act, the Sec-
retary shall designate, within the Office of Defense Trade 
Controls of the Department of State, a coordinator for 
small business affairs. The coordinator shall serve as a 
liaison for small businesses in the United States aerospace 
and defense industrial sector with respect to licensing and 
registration requirements in order to facilitate the compli-
ance and other forms of participation by such small busi-
nesses in the United States munitions control system, in-
cluding by providing training, technical assistance, and 
through other efforts as may be appropriate.
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SEC. 1206. STUDY AND REPORT RELATING TO CO-LOCATING 
MUNITIONS CONTROL FUNCTIONS OF THE 
DEPARTMENTS OF STATE, DEFENSE, AND 
HOMELAND SECURITY. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that the administrative, licensing, and compliance-
related functions associated with the export of defense ar-
ticles and defense services under section 38 of the Arms 
Export Control Act (22 U.S.C. 2778), which are generally 
administered by the Department of State in conjunction 
with the Department of Homeland Security and the De-
partment of Defense, should be expedited consistent with 
United States security, law enforcement, and foreign pol-
icy requirements by a reduction in the those matters ne-
cessitating inter-agency referral outside of the Depart-
ment of State, or by co-locating related functions of the 
Department of Homeland Security and the Department 
of Defense with those functions of the Department of 
State in order to minimize the time and administrative 
tasks to government and industry involved in inter-agency 
referrals, while also providing a convenient, central loca-
tion for United States defense companies, especially small 
businesses. 
(b) STUDY AND REPORT.—
(1) STUDY.—The Secretary, in consultation 
with the Secretary of Homeland Security and the
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Secretary of Defense, and through the Federal advi-
sory committee structure with the public, shall con-
duct a study to examine the relative advantages and 
disadvantages to the United States Government, the 
United States defense industry, including United 
States small businesses, and to other public constitu-
encies of co-locating relevant functions and per-
sonnel of the Department of State, the Department 
of Homeland Security, and the Department of De-
fense with the Office of Defense Trade Controls of 
the Department of State at a central location con-
venient to the public and United States defense in-
dustry, without prejudice to the responsibilities and 
prerogatives of the Secretary, the Secretary of 
Homeland Security, and the Secretary of Defense 
under existing law. 
(2) REPORT.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary 
shall prepare and submit to the appropriate congres-
sional committees a report that contains the results 
of study conducted under paragraph (1).
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TITLE 
XIII—SECURITY 
ASSIST-
ANCE AND RELATED PROVI-
SIONS 
Subtitle A—Foreign Military Sales 
and Financing Authorities 
SEC. 1301. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to the Presi-
dent for grant assistance under section 23 of the Arms 
Export Control Act (22 U.S.C. 2763) and for the subsidy 
cost, as defined in section 502(5) of the Federal Credit 
Reform Act of 1990, of direct loans under such section 
$4,414,000,000 for fiscal year 2004. 
SEC. 1302. PROVISION OF CATALOGING DATA AND SERV-
ICES. 
Section 21(h)(2) (22 U.S.C. 2761(h)(2)) is amended 
by striking ‘‘or to any member government of that Organi-
zation if that Organization or member government’’ and 
inserting ‘‘, to any member of that Organization, or to 
the Governments of Australia, New Zealand, or Japan if 
that Organization, member government, or the Govern-
ments of Australia, New Zealand, or Japan’’. 
SEC. 1303. ANNUAL ESTIMATE AND JUSTIFICATION FOR 
SALES PROGRAM. 
Section 25(a)(1) (22 U.S.C. 2765(a)(1)) is amended 
by inserting after ‘‘$7,000,000 or more’’ the following
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‘‘(or, in the case of a member country of the North Atlan-
tic Treaty Organization (NATO), Australia, New Zealand, 
or Japan, $25,000,000 or more)’’. 
SEC. 1304. ADJUSTMENT TO ADVANCE NOTIFICATION RE-
QUIREMENT FOR TRANSFER OF CERTAIN EX-
CESS DEFENSE ARTICLES. 
Section 516(f)(1) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2321i) is amended by striking ‘‘signifi-
cant military equipment (as defined in section 47(9) of 
the Arms Export Control Act)’’ and inserting ‘‘major de-
fense equipment (as defined in section 47(6) of the Arms 
Export Control Act)’’. 
Subtitle B—International Military 
Education and Training 
SEC. 1311. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to the Presi-
dent $91,700,000 for fiscal year 2004 to carry out chapter 
5 of part II of the Foreign Assistance Act of 1961 (22 
U.S.C. 2347 et seq.). 
SEC. 1312. ANNUAL FOREIGN MILITARY TRAINING REPORT-
ING. 
Section 656(a)(1) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2416(a)(1)) is amended—
(1) by striking ‘‘January 31’’ and inserting 
‘‘March 1’’; and
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(2) by striking ‘‘and all such training proposed 
for the current fiscal year’’.
SEC. 1313. CONDITION ON THE PROVISION OF CERTAIN 
FUNDS TO INDONESIA. 
(a) CONDITION ON ASSISTANCE.—Subject to sub-
section (c), no funds made available under section 23 of 
the Arms Export Control Act (22 U.S.C. 2763) or chapter 
5 of part II of the Foreign Assistance Act of 1961 (22 
U.S.C. 2347 et seq.) in fiscal year 2004, other than funds 
made available for expanded military education and train-
ing under such chapter, may be available for a program 
that involves the Government of Indonesia or the Indo-
nesian Armed Forces until the President makes the certifi-
cation described in subsection (b). 
(b) CERTIFICATION.—The certification referred to in 
subsection (a) is a certification submitted by the President 
to the appropriate congressional committees that the Gov-
ernment of Indonesia and the Indonesian Armed Forces 
are taking effective measures, including cooperating with 
the Director of the Federal Bureau of Investigation—
(1) to conduct a full investigation of the attack 
on United States citizens in West Papua, Indonesia 
on August 31, 2002; and 
(2) to criminally prosecute the individuals re-
sponsible for such attack.
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(c) LIMITATION.—Nothing in this section shall pro-
hibit the United States Government from continuing to 
conduct programs or training with the Indonesian Armed 
Forces, including counterterrorism training, officer visits, 
port visits, or educational exchanges that are being con-
ducted on the date of the enactment of this Act. 
Subtitle C—Assistance for Select 
Countries 
SEC. 1321. ASSISTANCE FOR ISRAEL. 
Section 513 of the Security Assistance Act of 2000 
(Public Law 106–280) is amended—
(1) in subsection (b)(1), by striking ‘‘2002 and 
2003’’ and inserting ‘‘2003 through 2005’’; 
(2) in subsection (c)(1), by striking ‘‘2002 and 
2003’’ and inserting ‘‘2003 through 2005’’; 
(3) in subsection (c)(3)—
(A) by striking ‘‘fiscal years 2002 and 
2003’’ and inserting ‘‘fiscal years 2004 and 
2005’’; 
(B) by striking ‘‘fiscal year 2002’’ and in-
serting ‘‘fiscal year 2004’’; and 
(C) by striking ‘‘fiscal year 2003, or’’ and 
inserting ‘‘fiscal year 2005, or’’; and 
(4) in subsection (c)(4)—
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(A) by striking ‘‘2002 and 2003’’ and in-
serting ‘‘2003 through 2005’’; and 
(B) by striking ‘‘$535,000,000 for fiscal 
year 2002’’ and all that follows through ‘‘fiscal 
year 2003’’ and inserting ‘‘$550,000,000 for 
fiscal year 2003, not less than $565,000,000 
for fiscal year 2004, and not less than 
$580,000,000 for fiscal year 2005’’. 
SEC. 1322. ASSISTANCE FOR EGYPT. 
Section 514 of the Security Assistance Act of 2000 
(Public Law 106–280) is amended—
(1) by striking ‘‘2002 and 2003’’ each place it 
appears and inserting ‘‘2003 through 2005’’; and 
(2) in subsection (e)—
(A) by striking ‘‘fiscal years 2002 and 
2003’’ and inserting ‘‘fiscal years 2004 and 
2005’’;
(B) by striking ‘‘fiscal year 2002’’ and in-
serting ‘‘fiscal year 2004’’; and 
(C) by striking ‘‘fiscal year 2003, or’’ and 
inserting ‘‘fiscal year 2005, or’’.
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Subtitle D—Miscellaneous 
Provisions 
SEC. 1331. UNITED STATES WAR RESERVE STOCKPILES FOR 
ALLIES. 
Section 514(b)(2) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2321h(b)(2)) is amended—
(1) in subparagraph (A), by striking ‘‘for fiscal 
year 2003’’ and inserting ‘‘for each of fiscal years 
2003 and 2004’’; and 
(2) in subparagraph (B), by striking ‘‘for fiscal 
year 2003’’ and inserting ‘‘for each of fiscal years 
2003 and 2004’’. 
SEC. 1332. TRANSFER TO ISRAEL OF CERTAIN DEFENSE AR-
TICLES IN THE UNITED STATES WAR RE-
SERVE STOCKPILES FOR ALLIES. 
(a) AUTHORIZATION.—Notwithstanding section 514 
of the Foreign Assistance Act of 1961 (22 U.S.C. 2321h), 
the President is authorized to transfer to Israel, in return 
for concessions to be negotiated by the Secretary of De-
fense, with the concurrence of the Secretary, defense arti-
cles, including armor, artillery, ammunition for automatic 
weapons, missiles, and other munitions that are—
(1) obsolete or surplus items; 
(2) in the inventory of the Department of De-
fense;
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(3) intended for use as reserve stocks in Israel; 
and 
(4) are located in a stockpile in Israel as of the 
date of enactment of this Act. 
(b) CONCESSIONS.—The value of concessions nego-
tiated pursuant to subsection (a) shall be at least equal 
to the fair market value of the items transferred. The con-
cessions may include cash compensation, services, waiver 
of charges otherwise payable by the United States, and 
other items of value. 
(c) ADVANCE NOTIFICATION OF TRANSFER.—
(1) IN GENERAL.—Not less than 30 days before 
making a transfer under the authority of this sec-
tion, the President shall transmit a notification de-
scribing the items to be transferred to Israel and the 
concessions to be received by the United States to 
the congressional committees specified in paragraph 
(2). 
(2) 
CONGRESSIONAL
COMMITTEES
SPECI-
FIED.—The congressional committees referred to in 
paragraph (1) are—
(A) the Committee on International Rela-
tions and the Committee on Armed Services of 
the House of Representatives; and
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(B) the Committee on Foreign Relations 
and the Committee on Armed Services of the 
Senate. 
(d) EXPIRATION OF AUTHORITY.—No transfer may 
be made under the authority of this section following the 
expiration of the five-year period beginning on the date 
of enactment of this Act. 
SEC. 1333. EXPANSION OF AUTHORITIES FOR LOAN OF MA-
TERIAL, SUPPLIES, AND EQUIPMENT FOR RE-
SEARCH AND DEVELOPMENT PURPOSES. 
Section 65 (22 U.S.C. 2796d) is amended—
(1) in subsection (a)(1), by inserting ‘‘or a 
friendly foreign country’’ after ‘‘ally’’ each place 
such term appears; and 
(2) in subsection (d) to read as follows: 
‘‘(d) For purposes of this section—
‘‘(1) the term ‘NATO ally’ means a member 
country of the North Atlantic Treaty Organization 
(other than the United States); and 
‘‘(2) the term ‘friendly foreign country’ means 
any non-NATO member country determined by the 
President to be eligible for a cooperative project 
agreement with the United States pursuant to sec-
tion 27(j) of this Act.’’.