IIB
106TH CONGRESS
1ST SESSION
H. R. 973
IN THE SENATE OF THE UNITED STATES
JUNE 16, 1999
Received; read twice and referred to the Committee on Foreign Relations
AN ACT
To modify authorities with respect to the provision of secu-
rity assistance under the Foreign Assistance Act of 1961
and the Arms Export Control Act, and for other pur-
poses.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Security Assistance
Act of 1999’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I—TRANSFERS OF EXCESS DEFENSE ARTICLES
Sec. 101. Excess defense articles for central European countries.
Sec. 102. Excess defense articles for certain independent States of the former
Soviet Union.
TITLE II—FOREIGN MILITARY SALES AUTHORITIES
Sec. 201. Termination of foreign military financed training.
Sec. 202. Sales of excess Coast Guard property.
Sec. 203. Competitive pricing for sales of defense articles.
Sec. 204. Reporting of offset agreements.
Sec. 205. Notification of upgrades to direct commercial sales.
Sec. 206. Expanded prohibition on incentive payments.
Sec. 207. Administrative fees for leasing of defense articles.
TITLE III—STOCKPILING OF DEFENSE ARTICLES FOR FOREIGN
COUNTRIES
Sec. 301. Additions to United States war reserve stockpiles for allies.
Sec. 302. Transfer of certain obsolete or surplus defense articles in the war re-
serves stockpile for allies.
TITLE IV—INTERNATIONAL ARMS SALES CODE OF CONDUCT ACT
OF 1999
Sec. 401. Short title.
Sec. 402. Findings.
Sec. 403. International arms sales code of conduct.
TITLE V—AUTHORITY TO EXEMPT INDIA AND PAKISTAN FROM
CERTAIN SANCTIONS
Sec. 501. Waiver authority.
Sec. 502. Consultation.
Sec. 503. Reporting requirement.
Sec. 504. Appropriate congressional committees defined.
TITLE VI—TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN
COUNTRIES
Sec. 601. Authority to transfer naval vessels.
Sec. 602. Inapplicability of aggregate annual limitation on value of transferred
excess defense articles.
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Sec. 603. Costs of transfers.
Sec. 604. Expiration of authority.
Sec. 605. Repair and refurbishment of vessels in United States shipyards.
Sec. 606. Sense of the Congress relating to transfer of naval vessels and air-
craft to the Government of the Philippines.
TITLE VII—MISCELLANEOUS PROVISIONS
Sec. 701. Annual military assistance reports.
Sec. 702. Publication of arms sales certifications.
Sec. 703. Notification requirements for commercial export of significant mili-
tary equipment on United States Munitions List.
Sec. 704. Enforcement of Arms Export Control Act.
Sec. 705. Violations relating to material support to terrorists.
Sec. 706. Authority to consent to third party transfer of ex-U.S.S. Bowman
County to USS LST Ship Memorial, Inc.
Sec. 707. Exceptions relating to prohibitions on assistance to countries involved
in transfer or use of nuclear explosive devices.
Sec. 708. Continuation of the export control regulations under IEEPA.
TITLE I—TRANSFERS OF EXCESS
DEFENSE ARTICLES
SEC. 101. EXCESS DEFENSE ARTICLES FOR CENTRAL EURO-
PEAN COUNTRIES.
Section 105 of Public Law 104–164 (110 Stat. 1427)
is amended by striking ‘‘1996 and 1997’’ and inserting
‘‘2000 and 2001’’.
SEC. 102. EXCESS DEFENSE ARTICLES FOR CERTAIN INDE-
PENDENT STATES OF THE FORMER SOVIET
UNION.
(a) USES FOR WHICH FUNDS ARE AVAILABLE.—
Notwithstanding section 516(e) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2321j(e)), during each of the fiscal
years 2000 and 2001, funds available to the Department
of Defense may be expended for crating, packing, han-
dling, and transportation of excess defense articles trans-
ferred under the authority of section 516 of that Act to
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Georgia, 
Kazakhstan, 
Kyrgyzstan, 
Moldova,
Turkmenistan, Ukraine, and Uzbekistan.
(b) CONTENT OF CONGRESSIONAL NOTIFICATION.—
Each notification required to be submitted under section
516(f) of the Foreign Assistance Act of 1961 (22 U.S.C.
2321j(f)) with respect to a proposed transfer of a defense
article described in subsection (a) shall include an esti-
mate of the amount of funds to be expended under sub-
section (a) with respect to that transfer.
TITLE II—FOREIGN MILITARY
SALES AUTHORITIES
SEC. 201. TERMINATION OF FOREIGN MILITARY FINANCED
TRAINING.
Section 617 of the Foreign Assistance Act of 1961
(22 U.S.C. 2367) is amended—
(1) by inserting in the second sentence ‘‘and the
Arms Export Control Act’’ after ‘‘under this Act’’
the first place it appears;
(2) by striking ‘‘under this Act’’ the second
place it appears; and
(3) by inserting in the third sentence ‘‘and
under the Arms Export Control Act’’ after ‘‘this
Act’’.
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SEC. 202. SALES OF EXCESS COAST GUARD PROPERTY.
Section 21(a)(1) of the Arms Export Control Act (22
U.S.C. 2761(a)(1)) is amended in the text above subpara-
graph (A) by inserting ‘‘and the Coast Guard’’ after ‘‘De-
partment of Defense’’.
SEC. 203. COMPETITIVE PRICING FOR SALES OF DEFENSE
ARTICLES.
Section 22(d) of the Arms Export Control Act (22
U.S.C. 2762(d)) is amended—
(1) by striking ‘‘Procurement contracts’’ and
inserting ‘‘(1) Procurement contracts’’; and
(2) by adding at the end the following:
‘‘(2) Direct costs associated with meeting additional
or unique requirements of the purchaser shall be allowable
under contracts described in paragraph (1). Loadings ap-
plicable to such direct costs shall be permitted at the same
rates applicable to procurement of like items purchased
by the Department of Defense for its own use.’’.
SEC. 204. REPORTING OF OFFSET AGREEMENTS.
(a) GOVERNMENT-TO-GOVERNMENT
SALES.—Sec-
tion 36(b)(1) of the Arms Export Control Act (22 U.S.C.
2776(b)(1)) is amended in the fourth sentence by striking
‘‘(if known on the date of transmittal of such certifi-
cation)’’ and inserting ‘‘and, if known on the date of trans-
mittal of such certification, a description of the offset
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agreement. Such description may be included in the classi-
fied portion of such numbered certification’’.
(b) COMMERCIAL SALES.—Section 36(c)(1) of the
Arms Export Control Act (22 U.S.C. 2776(c)(1)) is
amended in the second sentence by striking ‘‘(if known
on the date of transmittal of such certification)’’ and in-
serting ‘‘and, if known on the date of transmittal of such
certification, a description of the offset agreement. Such
description may be included in the classified portion of
such numbered certification’’.
SEC. 205. NOTIFICATION OF UPGRADES TO DIRECT COM-
MERCIAL SALES.
Section 36(c) of the Arms Export Control Act (22
U.S.C. 2776(c)) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(4) The provisions of subsection (b)(5) shall apply
to any equipment, article, or service for which a numbered
certification has been transmitted to Congress pursuant
to paragraph (1) in the same manner and to the same
extent as that subsection applies to any equipment, article,
or service for which a numbered certification has been
transmitted to Congress pursuant to subsection (b)(1).
For purposes of such application, any reference in sub-
section (b)(5) to ‘a letter of offer’ or ‘an offer’ shall be
deemed to be a reference to ‘a contract’.’’.
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SEC. 206. EXPANDED PROHIBITION ON INCENTIVE PAY-
MENTS.
(a) IN GENERAL.—Section 39A(a) of the Arms Ex-
port Control Act (22 U.S.C. 2779a(a)) is amended—
(1) by inserting ‘‘or licensed’’ after ‘‘sold’’; and
(2) by inserting ‘‘or export’’ after ‘‘sale’’.
(b) DEFINITION OF UNITED STATES PERSON.—Sec-
tion 39A(d)(3)(B)(ii) of the Arms Export Control Act (22
U.S.C. 2779a(d)(3)(B)(ii)) is amended by inserting ‘‘or by
an entity described in clause (i)’’ after ‘‘subparagraph
(A)’’.
SEC. 207. ADMINISTRATIVE FEES FOR LEASING OF DE-
FENSE ARTICLES.
Section 61(a) of the Arms Export Control Act (22
U.S.C. 2796(a)) is amended in paragraph (4) of the first
sentence by inserting after ‘‘including reimbursement for
depreciation of such articles while leased,’’ the following:
‘‘a fee for the administrative services associated with proc-
essing such leasing,’’.
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TITLE III—STOCKPILING OF DE-
FENSE ARTICLES FOR FOR-
EIGN COUNTRIES
SEC. 301. ADDITIONS TO UNITED STATES WAR RESERVE
STOCKPILES FOR ALLIES.
Paragraph (2) of section 514(b) of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2321h(b)(2)) is amended
to read as follows:
‘‘(2)(A) The value of such additions to stock-
piles of defense articles in foreign countries shall not
exceed $340,000,000 for fiscal year 1999 and
$60,000,000 for fiscal year 2000.
‘‘(B)(i) Of the amount specified in subpara-
graph (A) for fiscal year 1999, not more than
$320,000,000 may be made available for stockpiles
in the Republic of Korea and not more than
$20,000,000 may be made available for stockpiles in
Thailand.
‘‘(ii) Of the amount specified in subparagraph
(A) for fiscal year 2000, not more than $40,000,000
may be made available for stockpiles in the Republic
of Korea and not more than $20,000,000 may be
made available for stockpiles in Thailand.’’.
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SEC. 302. TRANSFER OF CERTAIN OBSOLETE OR SURPLUS
DEFENSE ARTICLES IN THE WAR RESERVES
STOCKPILE FOR ALLIES.
(a) ITEMS IN THE KOREAN STOCKPILE.—
(1) IN GENERAL.—Notwithstanding section 514
of the Foreign Assistance Act of 1961 (22 U.S.C.
2321h), the President is authorized to transfer to
the Republic of Korea, in return for concessions to
be negotiated by the Secretary of Defense, with the
concurrence of the Secretary of State, any or all of
the items described in paragraph (2).
(2) COVERED ITEMS.—The items referred to in
paragraph (1) are munitions, equipment, and mate-
rial such as tanks, trucks, artillery, mortars, general
purpose bombs, repair parts, ammunition, barrier
material, and ancillary equipment, if such items
are—
(A) obsolete or surplus items;
(B) in the inventory of the Department of
Defense;
(C) intended for use as reserve stocks for
the Republic of Korea; and
(D) as of the date of enactment of this
Act, located in a stockpile in the Republic of
Korea.
(b) ITEMS IN THE THAILAND STOCKPILE.—
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(1) IN GENERAL.—Notwithstanding section 514
of the Foreign Assistance Act of 1961 (22 U.S.C.
2321h), the President is authorized to transfer to
Thailand, in return for concessions to be negotiated
by the Secretary of Defense, with the concurrence of
the Secretary of State, any or all of the items in the
WRS–T stockpile described in paragraph (2).
(2) COVERED ITEMS.—The items referred to in
paragraph (1) are munitions, equipment, and mate-
rial such as tanks, trucks, artillery, mortars, general
purpose bombs, repair parts, ammunition, barrier
material, and ancillary equipment, if such items
are—
(A) obsolete or surplus items;
(B) in the inventory of the Department of
Defense;
(C) intended for use as reserve stocks for
Thailand; and
(D) as of the date of enactment of this
Act, located in a stockpile in Thailand.
(c) VALUATION OF CONCESSIONS.—The value of con-
cessions negotiated pursuant to subsections (a) and (b)
shall be at least equal to the fair market value of the items
transferred. The concessions may include cash compensa-
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tion, services, waiver of charges otherwise payable by the
United States, and other items of value.
(d) PRIOR NOTIFICATIONS OF PROPOSED TRANS-
FERS.—Not less 30 days before making a transfer under
the authority of this section, the President shall transmit
to the chairmen of the Committee on Foreign Relations
of the Senate and the Committee on International Rela-
tions of the House of Representatives a detailed notifica-
tion of the proposed transfer, which shall include an iden-
tification of the items to be transferred and the conces-
sions to be received.
(e) TERMINATION OF AUTHORITY.—No transfer may
be made under the authority of this section more than
three years after the date of enactment of this Act.
TITLE 
IV—INTERNATIONAL
ARMS SALES CODE OF CON-
DUCT ACT OF 1999
SEC. 401. SHORT TITLE.
This title may be cited as the ‘‘International Arms
Sales Code of Conduct Act of 1999’’.
SEC. 402. FINDINGS.
The Congress finds the following:
(1) The proliferation of conventional arms and
conflicts around the globe are multilateral problems.
The only way to effectively prevent rogue nations
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from acquiring conventional weapons is through a
multinational ‘‘arms sales code of conduct’’.
(2) Approximately 40,000,000 people, over 75
percent of whom were civilians, died as a result of
civil and international wars fought with conventional
weapons during the 45 years of the cold war, dem-
onstrating that conventional weapons can in fact be
weapons of mass destruction.
(3) Conflict has actually increased in the post
cold war era.
(4) It is in the national security and economic
interests of the United States to reduce dramatically
the $840,000,000,000 that all countries spend on
armed forces every year, $191,000,000,000 of which
is spent by developing countries, an amount equiva-
lent to 4 times the total bilateral and multilateral
foreign assistance such countries receive every year.
(5) The Congress has the constitutional respon-
sibility to participate with the executive branch in
decisions to provide military assistance and arms
transfers to a foreign government, and in the formu-
lation of a policy designed to reduce dramatically the
level of international militarization.
(6) A decision to provide military assistance
and arms transfers to a government that is undemo-
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cratic, does not adequately protect human rights, or
is currently engaged in acts of armed aggression
should require a higher level of scrutiny than does
a decision to provide such assistance and arms
transfers to a government to which these conditions
do not apply.
SEC. 403. INTERNATIONAL ARMS SALES CODE OF CON-
DUCT.
(a) NEGOTIATIONS.—The President shall attempt to
achieve the foreign policy goal of an international arms
sales code of conduct with all Wassenaar Arrangement
countries. The President shall take the necessary steps to
begin negotiations with all Wassenaar Arrangement coun-
tries within 120 days after the date of the enactment of
this Act. The purpose of these negotiations shall be to con-
clude an agreement on restricting or prohibiting arms
transfers to countries that do not meet the following cri-
teria:
(1) PROMOTES DEMOCRACY.—The government
of the country—
(A) was chosen by and permits free and
fair elections;
(B) promotes civilian control of the mili-
tary and security forces and has civilian institu-
tions controlling the policy, operation, and
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spending of all law enforcement and security in-
stitutions, as well as the armed forces;
(C) promotes the rule of law, equality be-
fore the law, and respect for individual and mi-
nority rights, including freedom to speak, pub-
lish, associate, and organize; and
(D) promotes the strengthening of polit-
ical, legislative, and civil institutions of democ-
racy, as well as autonomous institutions to
monitor the conduct of public officials and to
combat corruption.
(2) RESPECTS
HUMAN
RIGHTS.—The govern-
ment of the country—
(A) does not engage in gross violations of
internationally 
recognized 
human 
rights,
including—
(i) extra judicial or arbitrary execu-
tions;
(ii) disappearances;
(iii) torture or severe mistreatment;
(iv) prolonged arbitrary imprisonment;
(v) systematic official discrimination
on the basis of race, ethnicity, religion,
gender, national origin, or political affili-
ation; and
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(vi) grave breaches of international
laws of war or equivalent violations of the
laws of war in internal conflicts;
(B) vigorously investigates, disciplines, and
prosecutes those responsible for gross violations
of internationally recognized human rights;
(C) permits access on a regular basis to
political prisoners by international humani-
tarian organizations such as the International
Committee of the Red Cross;
(D) promotes the independence of the judi-
ciary and other official bodies that oversee the
protection of human rights;
(E) does not impede the free functioning of
domestic and international human rights orga-
nizations; and
(F) provides access on a regular basis to
humanitarian organizations in situations of con-
flict or famine.
(3) NOT ENGAGED IN CERTAIN ACTS OF ARMED
AGGRESSION.—The government of the country is not
currently engaged in acts of armed aggression in
violation of international law.
(4) FULL PARTICIPATION IN UNITED NATIONS
REGISTER OF CONVENTIONAL ARMS.—The govern-
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ment of the country is fully participating in the
United Nations Register of Conventional Arms.
(b) REPORTS TO CONGRESS.—(1) In the report re-
quired in sections 116(d) and 502B of the Foreign Assist-
ance Act of 1961, the Secretary of State shall describe
the extent to which the practices of each country evaluated
meet the criteria in paragraphs (1) through (4) of sub-
section (a).
(2) Not later than 6 months after the commencement
of the negotiations under subsection (a), and not later
than the end of every 6-month period thereafter until an
agreement described in subsection (a) is concluded, the
President shall report to the appropriate committees of the
Congress on the progress made during these negotiations.
(c) DEFINITION.—The term ‘‘Wassenaar Arrange-
ment countries’’ means Argentina, Australia, Austria, Bel-
gium, Bulgaria, Canada, the Czech Republic, Denmark,
Finland, France, Germany, Greece, Hungary, Ireland,
Italy, Japan, Luxembourg, Netherlands, New Zealand,
Norway, Poland, Portugal, the Republic of Korea, Roma-
nia, Russia, Slovakia, Spain, Sweden, Switzerland, Tur-
key, Ukraine, and the United Kingdom.
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TITLE 
V—AUTHORITY 
TO 
EX-
EMPT INDIA AND PAKISTAN
FROM CERTAIN SANCTIONS
SEC. 501. WAIVER AUTHORITY.
(a) AUTHORITY.—
(1) IN GENERAL.—Except as provided in sub-
section (b), the President may waive, with respect to
India or Pakistan, the application of any sanction or
prohibition (or portion thereof) contained in section
101 or 102 of the Arms Export Control Act (22
U.S.C. 2799aa or 2799aa–1), section 620E(e) of the
Foreign Assistance Act of 1961 (22 U.S.C.
2375(e)), or section 2(b)(4) of the Export Import
Bank Act of 1945 (12 U.S.C. 635(b)(4)).
(2) EFFECTIVE DATE.—A waiver of the applica-
tion of a sanction or prohibition (or portion thereof)
under paragraph (1) shall be effective only for a pe-
riod ending on or before September 30, 2000.
(b) EXCEPTION.—The authority to waive the applica-
tion of a sanction or prohibition (or portion thereof) under
subsection (a) shall not apply with respect to a sanction
or prohibition contained in subparagraph (B), (C), or (G)
of section 102(b)(2) of the Arms Export Control Act.
(c) NOTIFICATION.—A waiver of the application of a
sanction or prohibition (or portion thereof) contained in
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section 541 of the Foreign Assistance Act of 1961 shall
not become effective until 15 days after notice of such
waiver has been reported to the congressional committees
specified in section 634A(a) of such Act in accordance
with the procedures applicable to reprogramming notifica-
tions under that section.
SEC. 502. CONSULTATION.
Prior to each exercise of the authority provided in
section 501, the President shall consult with the appro-
priate congressional committees.
SEC. 503. REPORTING REQUIREMENT.
Not later than August 31, 2000, the Secretary of
State shall prepare and submit to the appropriate congres-
sional committees a report on economic and national secu-
rity developments in India and Pakistan.
SEC. 504. APPROPRIATE CONGRESSIONAL COMMITTEES
DEFINED.
In this title, the term ‘‘appropriate congressional
committees’’ means—
(1) the Committee on International Relations
and the Committee on Appropriations of the House
of Representatives; and
(2) the Committee on Foreign Relations and
the Committee on Appropriations of the Senate.
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TITLE VI—TRANSFER OF NAVAL
VESSELS TO CERTAIN FOR-
EIGN COUNTRIES
SEC. 601. AUTHORITY TO TRANSFER NAVAL VESSELS.
(a) DOMINICAN REPUBLIC.—The Secretary of the
Navy is authorized to transfer to the Government of the
Dominican Republic the medium auxiliary floating dry
dock AFDM 2. Such transfer shall be on a grant basis
under section 516 of the Foreign Assistance Act of 1961
(22 U.S.C. 2321j).
(b) ECUADOR.—The Secretary of the Navy is author-
ized to transfer to the Government of Ecuador the ‘‘OAK
RIDGE’’ class medium auxiliary repair dry dock
ALAMOGORDO (ARDM 2). Such transfer shall be on a
sales basis under section 21 of the Arms Export Control
Act (22 U.S.C. 2761).
(c) EGYPT.—The Secretary of the Navy is authorized
to transfer to the Government of Egypt the ‘‘NEWPORT’’
class tank landing ships BARBOUR COUNTY (LST
1195) and PEORIA (LST 1183). Such transfers shall be
on a sales basis under section 21 of the Arms Export Con-
trol Act (22 U.S.C. 2761).
(d) GREECE.—(1) The Secretary of the Navy is au-
thorized to transfer to the Government of Greece the
‘‘KNOX’’ class frigate CONNOLE (FF 1056). Such
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transfer shall be on a grant basis under section 516 of
the Foreign Assistance Act of 1961 (22 U.S.C. 2321j).
(2) The Secretary of the Navy is authorized to trans-
fer to the Government of Greece the medium auxiliary
floating dry dock COMPETENT (AFDM 6). Such trans-
fer shall be on a sales basis under section 21 of the Arms
Export Control Act (22 U.S.C. 2761).
(e) MEXICO.—The Secretary of the Navy is author-
ized to transfer to the Government of Mexico the ‘‘NEW-
PORT’’ class tank landing ship NEWPORT (LST 1179)
and the ‘‘KNOX’’ class frigate WHIPPLE (FF 1062).
Such transfers shall be on a sales basis under section 21
of the Arms Export Control Act (22 U.S.C. 2761).
(f) POLAND.—The Secretary of the Navy is author-
ized to transfer to the Government of Poland the ‘‘OLI-
VER HAZARD PERRY’’ class guided missile frigate
CLARK (FFG 11). Such transfer shall be on a grant basis
under section 516 of the Foreign Assistance Act of 1961
(22 U.S.C. 2321j).
(g) TAIWAN.—The Secretary of the Navy is author-
ized to transfer to the Taipei Economic and Cultural Rep-
resentative Office in the United States (which is the Tai-
wan instrumentality designated pursuant to section 10(a)
of the Taiwan Relations Act) the ‘‘NEWPORT’’ class
tank landing ship SCHENECTADY (LST 1185). Such
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transfer shall be on a sales basis under section 21 of the
Arms Export Control Act (22 U.S.C. 2761).
(h) THAILAND.—The Secretary of the Navy is au-
thorized to transfer to the Government of Thailand the
‘‘KNOX’’ class frigate TRUETT (FF 1095). Such trans-
fer shall be on a grant basis under section 516 of the For-
eign Assistance Act of 1961 (22 U.S.C. 2321j).
(i) TURKEY.—The Secretary of the Navy is author-
ized to transfer to the Government of Turkey the ‘‘OLI-
VER HAZARD PERRY’’ class guided missile frigates
FLATLEY (FFG 21) and JOHN A. MOORE (FFG 19).
Such transfers shall be on a sales basis under section 21
of the Arms Export Control Act (22 U.S.C. 2761).
SEC. 602. INAPPLICABILITY OF AGGREGATE ANNUAL LIMI-
TATION ON VALUE OF TRANSFERRED EXCESS
DEFENSE ARTICLES.
The value of a vessel transferred to another country
on a grant basis under section 516 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2321j) pursuant to authority
provided by section 601 shall not be counted for the pur-
poses of section 516(g) of the Foreign Assistance Act of
1961 in the aggregate value of excess defense articles
transferred to countries under that section in any fiscal
year.
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SEC. 603. COSTS OF TRANSFERS.
Any expense incurred by the United States in connec-
tion with a transfer of a vessel authorized by section 601
shall be charged to the recipient.
SEC. 604. EXPIRATION OF AUTHORITY.
The authority to transfer vessels under section 601
shall expire at the end of the 2-year period beginning on
the date of the enactment of this Act.
SEC. 605. REPAIR AND REFURBISHMENT OF VESSELS IN
UNITED STATES SHIPYARDS.
The Secretary of the Navy shall require, to the max-
imum extent possible, as a condition of a transfer of a
vessel under section 601, that the country to which the
vessel is transferred have such repair or refurbishment of
the vessel as is needed, before the vessel joins the naval
forces of that country, performed at a shipyard located
in the United States, including a United States Navy ship-
yard.
SEC. 606. SENSE OF THE CONGRESS RELATING TO TRANS-
FER OF NAVAL VESSELS AND AIRCRAFT TO
THE GOVERNMENT OF THE PHILIPPINES.
(a) SENSE OF THE CONGRESS.—It is the sense of the
Congress that—
(1) the President should transfer to the Govern-
ment of the Philippines, on a grant basis under sec-
tion 516 of the Foreign Assistance Act of 1961 (22
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U.S.C. 2321j), the excess defense articles described
in subsection (b); and
(2) the United States should not oppose the
transfer of F–5 aircraft by a third country to the
Government of the Philippines.
(b) EXCESS DEFENSE ARTICLES.—The excess de-
fense articles described in this subsection are the fol-
lowing:
(1) UH–1 helicopters, A–4 aircraft, and the
‘‘POINT’’ 
class 
Coast 
Guard 
cutter 
POINT
EVANS.
(2) Amphibious landing craft, naval patrol ves-
sels (including patrol vessels of the Coast Guard),
and other naval vessels (such as frigates), if such
vessels are available.
TITLE VII—MISCELLANEOUS
PROVISIONS
SEC. 701. ANNUAL MILITARY ASSISTANCE REPORTS.
Section 655(b) of the Foreign Assistance Act of 1961
(22 U.S.C. 2415(b)) is amended to read as follows:
‘‘(b) INFORMATION RELATING TO MILITARY ASSIST-
ANCE AND MILITARY EXPORTS.—Each such report shall
show the aggregate dollar value and quantity of defense
articles (including excess defense articles), defense serv-
ices, and international military education and training ac-
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tivities authorized by the United States and of such arti-
cles, services, and activities provided by the United States,
excluding any activity that is reportable under title V of
the National Security Act of 1947, to each foreign country
and international organization. The report shall specify,
by category, whether such defense articles—
‘‘(1) were furnished by grant under chapter 2
or chapter 5 of part II of this Act or under any
other authority of law or by sale under chapter 2 of
the Arms Export Control Act;
‘‘(2) were furnished with the financial assist-
ance of the United States Government, including
through loans and guarantees; or
‘‘(3) were licensed for export under section 38
of the Arms Export Control Act.’’.
SEC. 702. PUBLICATION OF ARMS SALES CERTIFICATIONS.
Section 36 of the Arms Export Control Act (22
U.S.C. 2776) is amended in the second subsection (e) (as
added by section 155 of Public Law 104–164)—
(1) by inserting ‘‘in a timely manner’’ after ‘‘to
be published’’; and
(2) by striking ‘‘the full unclassified text of’’
and all that follows and inserting the following: ‘‘the
full unclassified text of—
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‘‘(1) each numbered certification submitted pur-
suant to subsection (b);
‘‘(2) each notification of a proposed commercial
sale submitted under subsection (c); and
‘‘(3) each notification of a proposed commercial
technical assistance or manufacturing licensing
agreement submitted under subsection (d).’’.
SEC. 703. NOTIFICATION REQUIREMENTS FOR COMMER-
CIAL EXPORT OF SIGNIFICANT MILITARY
EQUIPMENT ON UNITED STATES MUNITIONS
LIST.
(a) NOTIFICATION REQUIREMENT.—Section 38 of
the Arms Export Control Act (22 U.S.C. 2778) is amend-
ed by adding at the end the following:
‘‘(i) As prescribed in regulations issued under this
section, a United States person to whom a license has been
granted to export an item identified as significant military
equipment on the United States Munitions List shall, not
later than 15 days after the item is exported, submit to
the Department of State a report containing all shipment
information, including a description of the item and the
quantity, value, port of exit, and destination of the item.’’.
(b) QUARTERLY REPORTS TO CONGRESS.—Section
36(a) of the Arms Export Control Act (22 U.S.C.
2776(a)) is amended—
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(A) in paragraph (11), by striking ‘‘and’’
at the end;
(B) in paragraph (12), by striking ‘‘third-
party transfers.’’ and inserting ‘‘third-party
transfers; and’’; and
(C) by adding after paragraph (12) (but
before the last sentence of the subsection), the
following:
‘‘(13) a report on all exports of significant mili-
tary equipment for which information has been pro-
vided pursuant to section 38(i).’’.
SEC. 704. ENFORCEMENT OF ARMS EXPORT CONTROL ACT.
The Arms Export Control Act (22 U.S.C. 2751 et
seq.) is amended in sections 38(e), 39A(c), and 40(k) by
inserting after ‘‘except that’’ each place it appears the fol-
lowing: ‘‘section 11(c)(2)(B) of such Act shall not apply,
and instead, as prescribed in regulations issued under this
section, the Secretary of State may assess civil penalties
for violations of this Act and regulations prescribed there-
under and further may commence a civil action to recover
such civil penalties, and except further that’’.
SEC. 705. VIOLATIONS RELATING TO MATERIAL SUPPORT
TO TERRORISTS.
Section 38(g)(1)(A)(iii) of the Arms Export Control
Act (22 U.S.C. 2778(g)(1)(A)(iii)) is amended by adding
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at the end before the comma the following: ‘‘or section
2339A of such title (relating to providing material support
to terrorists)’’.
SEC. 706. AUTHORITY TO CONSENT TO THIRD PARTY
TRANSFER OF EX-U.S.S. BOWMAN COUNTY TO
USS LST SHIP MEMORIAL, INC.
(a) FINDINGS.—Congress makes the following find-
ings:
(1) It is the long-standing policy of the United
States Government to deny requests for the re-
transfer of significant military equipment that origi-
nated in the United States to private entities.
(2) In very exceptional circumstances, when the
United States public interest would be served by the
proposed retransfer and end-use, such requests may
be favorably considered.
(3) Such retransfers to private entities have
been authorized in very exceptional circumstances
following appropriate demilitarization and receipt of
assurances from the private entity that the item to
be transferred would be used solely in furtherance of
Federal Government contracts or for static museum
display.
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(4) Nothing in this section should be construed
as a revision of long-standing policy referred to in
paragraph (1).
(5) The Government of Greece has requested
the consent of the United States Government to the
retransfer of HS Rodos (ex-U.S.S. Bowman County
(LST 391)) to the USS LST Ship Memorial, Inc.
(b) AUTHORITY TO CONSENT TO RETRANSFER.—
(1) IN GENERAL.—Subject to paragraph (2),
the President may consent to the retransfer by the
Government of Greece of HS Rodos (ex-U.S.S. Bow-
man County (LST 391)) to the USS LST Ship Me-
morial, Inc.
(2) CONDITIONS FOR CONSENT.—The President
should not exercise the authority under paragraph
(1) unless USS LST Memorial, Inc.—
(A) utilizes the vessel for public, nonprofit,
museum-related purposes;
(B) submits a certification with the import
application that no firearms frames or receivers,
ammunition, or other firearms as defined in
section 5845 of the National Firearms Act (26
U.S.C. 5845) will be imported with the vessel;
and
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(C) complies with regulatory policy re-
quirements related to the facilitation of moni-
toring by the Federal Government of, and the
mitigation of potential environmental hazards
associated with, aging vessels, and has a dem-
onstrated financial capability to so comply.
SEC. 707. EXCEPTIONS RELATING TO PROHIBITIONS ON AS-
SISTANCE 
TO 
COUNTRIES 
INVOLVED 
IN
TRANSFER OR USE OF NUCLEAR EXPLOSIVE
DEVICES.
(a) IN GENERAL.—Section 2 of the Agriculture Ex-
port Relief Act of 1998 (Public Law 105–194; 112 Stat.
627) is amended—
(1) by striking subsection (d); and
(2) by striking the second sentence of sub-
section (e).
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect on the date of the enact-
ment of this Act or September 30, 1999, whichever occurs
earlier.
SEC. 708. CONTINUATION OF THE EXPORT CONTROL REGU-
LATIONS UNDER IEEPA.
To the extent that the President exercises the au-
thorities of the International Emergency Economic Pow-
ers Act to carry out the provisions of the Export Adminis-
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tration Act of 1979 in order to continue in full force and
effect the export control system maintained by the Export
Administration regulations issued under that Act, includ-
ing regulations issued under section 8 of that Act, the fol-
lowing shall apply:
(1) The penalties for violations of the regula-
tions continued pursuant to the International Emer-
gency Economic Powers Act shall be the same as the
penalties for violations under section 11 of the Ex-
port Administration Act of 1979, as if that section
were amended—
(A) by amending subsection (a) to read as
follows:
‘‘(a) IN GENERAL.—Except as provided in subsection
(b), whoever knowingly violates or conspires to or attempts
to violate any provision of this Act or any license, order,
or regulation issued under this Act—
‘‘(1) except in the case of an individual, shall be
fined not more than $500,000 or 5 times the value
of any exports involved, whichever is greater; and
‘‘(2) in the case of an individual, shall be fined
not more than $250,000 or 5 times the value of any
exports involved, whichever is greater, or imprisoned
not more than 5 years, or both.’’;
(B) in subsection (b)—
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(i) in paragraphs (1)(A) and (2)(A)
by striking ‘‘five times’’ and inserting ‘‘10
times’’;
(ii) in paragraph (1)(B) by striking
‘‘$250,000’’ and inserting ‘‘$500,000’’;
and
(iii) in paragraph (2)(B) by striking
‘‘$250,000, or imprisoned not more than 5
years’’ and inserting ‘‘$500,000, or impris-
oned not more than 10 years’’;
(C) in subsection (c)(1)—
(i) by striking ‘‘$10,000’’ and insert-
ing ‘‘$250,000’’; and
(ii) by striking ‘‘except that the civil
penalty’’ and all that follows through the
end of the paragraph and inserting ‘‘except
that the civil penalty for a violation of the
regulations issued pursuant to section 8
may not exceed $50,000.’’; and
(D) in subsection (h)(1), by inserting after
‘‘Arms Export Control Act (22 U.S.C. 2778)’’
the following: ‘‘section 16 of the Trading with
the enemy Act (50 U.S.C. 16), or, to the extent
the violation involves the export of goods or
technology controlled under this or any other
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Act or defense articles or defense services con-
trolled under the Arms Export Control Act, sec-
tion 371 or 1001 of title 18, United States
Code,’’.
(2) The authorities set forth in section 12(a) of
the Export Administration Act of 1979 may be exer-
cised in carrying out the regulations continued pur-
suant to the International Emergency Economic
Powers Act.
(3) The provisions of sections 12(c) and 13 of
the Export Administration Act of 1979 shall apply
in carrying out the regulations continued pursuant
to the International Emergency Economic Powers
Act.
(4) The continuation of the provisions of the
Export Administration Regulations pursuant to the
International Emergency Economic Powers Act shall
not be construed as not having satisfied the require-
ments of that Act.
Passed the House of Representatives June 15, 1999.
Attest:
JEFF TRANDAHL,
Clerk.