147
‘‘(f) EXEMPTION.—The criminal fines provided for in
this section are exempt from the provisions of section 3571
of title 18, United States Code.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 9 of title 13, United
States Code, is amended by striking the item relating
to section 305 and inserting the following:
‘‘305. Penalties for unlawful export information activities.’’.
SEC. 845. CONGRESSIONAL NOTIFICATION OF REMOVAL OF
ITEMS FROM THE MUNITIONS LIST.
Section 38(f)(1) of the Arms Export Control Act (22
U.S.C. 2778(f)(1)) is amended by striking the third sentence
and inserting the following: ‘‘The President may not remove
any item from the Munitions List until 30 days after the
date on which the President has provided notice of the pro-
posed removal to the Committee on International Relations
of the House of Representatives and to the Committee on
Foreign Relations of the Senate in accordance with the pro-
cedures applicable to reprogramming notifications under
section 634A(a) of the Foreign Assistance Act of 1961. Such
notice shall describe the nature of any controls to be im-
posed on that item under any other provision of law.’’.
SEC. 846. CONGRESSIONAL NOTIFICATION THRESHOLDS
FOR ALLIED COUNTRIES.
The Arms Export Control Act (22 U.S.C. 2751 et seq.)
is amended—
148
(1) in paragraphs (1) and (3)(A) of section 3(d),
by adding after ‘‘at $50,000,000 or more’’ each place
it appears the following: ‘‘(or, in the case of a transfer
to a country which is a member country of the North
Atlantic Treaty Organization (NATO) or Australia,
Japan, or New Zealand, any major defense equip-
ment valued (in terms of its original acquisition cost)
at $25,000,000 or more, or of defense articles or de-
fense services valued (in terms of its original acquisi-
tion cost) at $100,000,000 or more)’’;
(2) in section 36(b)(1), by adding after ‘‘for
$14,000,000 or more’’ the following: ‘‘(or, in the case
of a letter of offer to sell to a country which is a
member country of the North Atlantic Treaty Organi-
zation (NATO) or Australia, Japan, or New Zealand,
any major defense equipment under this Act for
$25,000,000 or more, any defense articles or services
for $100,000,000 or more, or any design and con-
struction services for $300,000,000 or more)’’;
(3) in section 36(b)(5)(C), by adding after ‘‘or
$200,000,000 or more in the case of design or con-
struction services’’ the following: ‘‘(or, in the case of
a letter of offer to sell to a country which is a member
country of the North Atlantic Treaty Organization
(NATO) or Australia, Japan, or New Zealand, any
149
major defense equipment for $25,000,000 or more,
any defense articles or services for $100,000,000 or
more, or any design and construction services for
$300,000,000 or more)’’;
(4) in section 36(c)(1), by adding after
‘‘$50,000,000 or more’’ the following: ‘‘(or, in the case
of an application by a person (other than with regard
to a sale under section 21 or section 22 of this Act)
for a license for the export to a country which is a
member country of the North Atlantic Treaty Organi-
zation (NATO) or Australia, Japan, or New Zealand,
of any major defense equipment sold under a contract
in the amount of $25,000,000 or more or of defense
articles or defense services sold under a contract in
the amount of $100,000,000 or more)’’; and
(5) 
in 
section 
63(a), 
by 
adding 
after
‘‘$50,000,000 or more’’ the following: ‘‘(or, in the case
of such an agreement with a country which is a mem-
ber country of the North Atlantic Treaty Organiza-
tion (NATO) or Australia, Japan, or New Zealand,
(i) major defense equipment valued (in terms of its
replacement cost less any depreciation in its value) at
$25,000,000 or more, or (ii) defense articles valued
(in terms of their replacement cost less any deprecia-
tion in their value) at $100,000,000 or more)’’.
150
Subtitle C—Authority to Transfer
Naval Vessels
SEC. 851. AUTHORITY TO TRANSFER NAVAL VESSELS TO
CERTAIN FOREIGN COUNTRIES.
(a) AUTHORITY TO TRANSFER.—
(1) BRAZIL.—The President is authorized to
transfer to the Government of Brazil the ‘‘Newport’’
class tank landing ship Peoria (LST 1183). Such
transfer shall be on a sale basis under section 21 of
the Arms Export Control Act (22 U.S.C. 2761).
(2) POLAND.—The President is authorized to
transfer to the Government of Poland the ‘‘Oliver
Hazard Perry’’ class guided missile frigate Wads-
worth (FFG 9). Such transfer shall be on a grant
basis under section 516 of the Foreign Assistance Act
of 1961 (22 U.S.C. 2321j).
(3) TAIWAN.—The President is authorized to
transfer to the Taipai Economic and Cultural Rep-
resentative Office in the United States (which is the
Taiwan instrumentality designated pursuant to sec-
tion 10(a) of the Taiwan Relations Act) the ‘‘Kidd’’
class guided missile destroyers Kidd (DDG 993),
Callaghan (DDG 994), Scott (DDG 995), and Chan-
dler (DDG 996). Such transfers shall be on a sales
151
basis under section 21 of the Arms Export Control
Act (22 U.S.C. 2761).
(4) TURKEY.—The President is authorized to
transfer to the ‘‘Oliver Hazard Perry’’ class guided
missile frigates Estocin (FFG 15) and Samuel Eliot
Morrison (FFG 13). Each such transfer shall be on a
sale basis under section 21 of the Arms Export Con-
trol Act (22 U.S.C. 2761). The President is further
authorized to transfer to the Government of Turkey
the ‘‘Knox’’ class frigates Capadanno (FF 1093),
Thomas C. Hart (FF 1092), Donald B. Beary (FF
1085), McCandless (FF 1084), Reasoner (FF 1063),
and Bowen (FF 1079). The transfer of these 6
‘‘Knox’’ class frigates shall be on a grant basis under
section 516 of the Foreign Assistance Act of 1961 (22
U.S.C. 2321j).
(b) GRANTS NOT COUNTED IN ANNUAL TOTAL OF
TRANSFERRED EXCESS DEFENSE ARTICLES.—The value of
a vessel transferred to another country on a grant basis
under section 516 of the Foreign Assistance Act of 1961 (22
U.S.C. 2321j) pursuant to authority provided by subsection
(a) shall not be counted for the purposes of subsection (g)
of that section in the aggregate value of excess defense arti-
cles transferred to countries under that section in any fiscal
year.
152
(c) COSTS OF TRANSFERS.—Notwithstanding section
516(e)(1) of the Foreign Assistance Act of 1961 (22 U.S.C.
2321j(e)(1)), any expense incurred by the United States in
connection with a transfer authorized to be made on a grant
basis under subsection (a) shall be charged to the recipient.
(d) REPAIR AND REFURBISHMENT IN UNITED STATES
SHIPYARDS.—To the maximum extent practicable, the
President shall require, as a condition of the transfer of a
vessel under this section, 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 United States Navy shipyard or
other shipyard located in the United States.
(e) EXPIRATION OF AUTHORITY.—The authority pro-
vided under subsection (a) shall expire at the end of the
2-year period beginning on the date of the enactment of this
Act.
Subtitle D—Miscellaneous
Provisions
SEC. 861. ANNUAL FOREIGN MILITARY TRAINING REPORTS.
Section 656(a) of the Foreign Assistance Act of 1961
(22 U.S.C. 2416) is amended—
(1) by striking ‘‘Not later than January 31 of
each year,’’ and inserting ‘‘Upon written request by
the chairman or ranking member of the Committee on
153
International Relations of the House of Representa-
tives or the Committee on Foreign Relations of the
Senate,’’; and
(2) by inserting ‘‘of a country specified in the re-
quest’’ after ‘‘personnel’’.
SEC. 862. REPORT RELATING TO INTERNATIONAL ARMS
SALES CODE OF CONDUCT.
Section 1262(c) of the Admiral James W. Nance and
Meg Donovan Foreign Relations Authorization Act, Fiscal
Years 2000 and 2001 (as enacted by section 1000(a)(7) of
Public Law 106–113; 113 Stat 1501A–508) is amended—
(1) in paragraph (1)—
(A) by striking ‘‘commencement of the nego-
tiations under subsection (a),’’ and inserting
‘‘date of the enactment of the Foreign Relations
Authorization Act, Fiscal Years 2002 and
2003,’’; and
(B) by striking ‘‘during these negotiations.’’
and inserting ‘‘to begin negotiations and any
progress made to conclude an agreement during
negotiations.’’; and
(2) in paragraph (2), by striking ‘‘subsection
(a)’’ and inserting ‘‘subsection (b)’’.
Union Calendar No. 34
107TH CONGRESS
1ST SESSION
H. R. 1646
[Report No. 107–57]
A BILL
To authorize appropriations for the Department of
State for fiscal years 2002 and 2003, and for
other purposes.
MAY 4, 2001
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union,
and ordered to be printed