IB 
Union Calendar No. 391 
110TH CONGRESS 
2D SESSION 
H. R. 5916 
[Report No. 110–626] 
To reform the administration of the Arms Export Control Act, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 29, 2008 
Mr. BERMAN (for himself, Ms. ROS-LEHTINEN, Mr. SHERMAN, and Mr. MAN-
ZULLO) introduced the following bill; which was referred to the Com-
mittee on Foreign Affairs 
MAY 12, 2008 
Additional sponsor: Mr. CROWLEY 
MAY 12, 2008 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on April 29, 2008] 
A BILL 
To reform the administration of the Arms Export Control 
Act, and for other purposes. 
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 AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘Se-
curity Assistance and Arms Export Control Reform Act of 
2008’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title and table of contents. 
TITLE I—REFORM OF ARMS EXPORT CONTROL PROCEDURES 
Subtitle A—Defense Trade Controls Performance Improvement Act of 2008 
Sec. 101. Short title. 
Sec. 102. Findings. 
Sec. 103. Strategic review and assessment of the United States export controls 
system. 
Sec. 104. Performance goals for processing of applications for licenses to export 
items on USML. 
Sec. 105. Requirement to ensure adequate staff and resources for DDTC of the De-
partment of State. 
Sec. 106. Audit by Inspector General of the Department of State. 
Sec. 107. Increased flexibility for use of defense trade controls registration fees. 
Sec. 108. Review of ITAR and USML. 
Sec. 109. Special licensing authorization for certain exports to NATO member 
states, Australia, Japan, and New Zealand. 
Sec. 110. Availability of information on the status of license applications under 
chapter 3 of the Arms Export Control Act. 
Sec. 111. Sense of Congress. 
Sec. 112. Definitions. 
Sec. 113. Authorization of appropriations. 
Subtitle B—Miscellaneous Provisions 
Sec. 121. Report on self-financing options for export licensing functions of DDTC 
of the Department of State. 
Sec. 122. Expediting congressional defense export review period for South Korea 
and Israel. 
Sec. 123. Availability to Congress of Presidential directives regarding United 
States arms export policies, practices, and regulations. 
Sec. 124. Increase in congressional notification thresholds and expediting congres-
sional review for South Korea and Israel. 
Sec. 125. Diplomatic efforts to strengthen national and international arms export 
controls. 
Sec. 126. Reporting requirement for unlicensed exports. 
Sec. 127. Report on value of major defense equipment and defense articles ex-
ported under section 38 of the Arms Export Control Act. 
Sec. 128. Report on satellite export controls. 
Sec. 129. Definition. 
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TITLE II—SECURITY ASSISTANCE AND RELATED SUPPORT FOR 
ISRAEL 
Sec. 201. Assessment of Israel’s qualitative military edge over military threats. 
Sec. 202. Report on United States’ commitments to the security of Israel. 
Sec. 203. War Reserves Stockpile. 
Sec. 204. Implementation of Memorandum of Understanding with Israel. 
Sec. 205. Definitions. 
TITLE III—WAIVER OF CERTAIN SANCTIONS TO FACILITATE 
DENUCLEARIZATION ACTIVITIES IN NORTH KOREA 
Sec. 301. Waiver authority and exceptions. 
Sec. 302. Certification regarding waiver of certain sanctions. 
Sec. 303. Congressional notification and report. 
Sec. 304. Termination of waiver authority. 
Sec. 305. Expiration of waiver authority. 
Sec. 306. Continuation of restrictions against the Government of North Korea. 
Sec. 307. Report on verification measures relating to North Korea’s nuclear pro-
grams. 
Sec. 308. Definitions. 
TITLE IV—MISCELLANEOUS PROVISIONS 
Sec. 401. Authority to build the capacity of foreign military forces. 
Sec. 402. Maintenance of European Union arms embargo against China. 
Sec. 403. Reimbursement of salaries of members of the reserve components in sup-
port of security cooperation missions. 
Sec. 404. Foreign Military Sales Stockpile Fund. 
Sec. 405. Congressional notification requirements under the Arms Export Control 
Act. 
Sec. 406. Sense of Congress. 
TITLE V—AUTHORITY TO TRANSFER NAVAL VESSELS 
Sec. 501. Authority to transfer naval vessels to certain foreign recipients. 
TITLE I—REFORM OF ARMS 
EXPORT CONTROL PROCEDURES 
Subtitle A—Defense Trade Controls 
Performance Improvement Act of 
2008 
SEC. 101. SHORT TITLE. 
This subtitle may be cited as the ‘‘Defense Trade Con-
trols Performance Improvement Act of 2008’’. 
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SEC. 102. FINDINGS. 
Congress finds the following: 
(1) In a time of international terrorist threats 
and a dynamic global economic and security environ-
ment, United States policy with regard to export con-
trols is in urgent need of a comprehensive review in 
order to ensure such controls are protecting the na-
tional security and foreign policy interests of the 
United States. 
(2) In January 2007, the Government Account-
ability Office designated the effective identification 
and protection of critical technologies as a govern-
ment-wide, high-risk area, warranting a strategic re-
examination of existing programs, including pro-
grams relating to arms export controls. 
(3) Federal Government agencies must review li-
censes for export of munitions in a thorough and 
timely manner to ensure that the United States is 
able to assist United States allies and to prevent nu-
clear and conventional weapons from getting into the 
hands of enemies of the United States. 
(4) Both staffing and funding that relate to the 
Department of State’s arms export control respon-
sibilities have not kept pace with the increased work-
load relating to such responsibilities, especially over 
the last five years. 
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(5) Outsourcing and off-shoring of defense pro-
duction and the policy of many United States trading 
partners to require offsets for major sales of defense 
and aerospace articles present a potential threat to 
United States national security and economic well- 
being and serve to weaken the defense industrial base. 
(6) Export control policies can have a negative 
impact on United States employment, nonprolifera-
tion goals, and the health of the defense industrial 
base, particularly when facilitating the overseas 
transfer of technology or production and other forms 
of outsourcing, such as offsets (direct and indirect), 
co-production, subcontracts, overseas investment and 
joint ventures in defense and commercial industries. 
Federal Government agencies must develop new and 
effective procedures for ensuring that export control 
systems address these problems and the threat they 
pose to national security. 
(7) In the report to Congress required by the 
Conference Report (Report 109–272) accompanying 
the bill, H.R. 2862 (the Science, State, Justice, Com-
merce and Related Agencies Appropriations Act, 
2006; Public Law 109–108), the Department of State 
concluded that— 
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(A) defense trade licensing has become much 
more complex in recent years as a consequence of 
the increasing globalization of the defense indus-
try; 
(B) the most important challenge to the De-
partment of State’s licensing process has been the 
sheer growth in volume of applicants for licenses 
and agreements, without the corresponding in-
crease in licensing officers; 
(C) fiscal year 2005 marked the third 
straight year of roughly 8 percent annual in-
creases in licensing volume; 
(D) although an 8 percent increase in work-
load equates to a requirement for three addi-
tional licensing officers per year, there has been 
no increase in licensing officers during this pe-
riod; and 
(E) the increase in licensing volume without 
a corresponding increase in trained and experi-
enced personnel has resulted in delays and in-
creased processing times. 
(8) In 2006, the Department of State processed 
over three times as many licensing applications as the 
Department of Commerce with about a fifth of the 
staff of the Department of Commerce. 
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(9) On July 27, 2007, in testimony delivered to 
the Subcommittee on Terrorism, Nonproliferation and 
Trade of the House Committee on Foreign Affairs to 
examine the effectiveness of the United States export 
control regime, the Government Accountability Office 
found that— 
(A) the United States Government needs to 
conduct assessments to determine its overall effec-
tiveness in the area of arms export control; and 
(B) the processing times of the Department 
of State doubled over the period from 2002 to 
2006. 
(10) Although the current number of unprocessed 
applications for licenses to export defense items is less 
than 3,800 applications, due to the extraordinary ef-
forts of the personnel and management of the Depart-
ment of State’s Directorate of Defense Trade Controls, 
at the end of 2006, the Department of State’s backlog 
of such unprocessed applications reached its highest 
level at more than 10,000 unprocessed applications. 
This resulted in major management and personnel 
challenges for the Directorate of Defense Trade Con-
trols. 
(11)(A) Allowing a continuation of the status 
quo in resources for defense trade licensing could ulti-
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mately harm the United States defense industrial 
base. The 2007 Institute for Defense Analysis report 
entitled ‘‘Export Controls and the U.S. Defense Indus-
trial Base’’ found that the large backlog and long 
processing times by the Department of State for ap-
plications for licenses to export defense items led to an 
impairment of United States firms in some sectors to 
conduct global business relative to foreign competitors. 
(B) Additionally, the report found that United 
States commercial firms have been reluctant to engage 
in research and development activities for the Depart-
ment of Defense because this raises the future pros-
pects that the products based on this research and de-
velopment, even if intrinsically commercial, will be 
saddled by Department of State munitions controls 
due to the link to that research. 
(12) According to the Department of State’s fis-
cal year 2008 budget justification to Congress, com-
mercial exports licensed or approved under the Arms 
Export Control Act exceeded $30,000,000,000, with 
nearly eighty percent of these items exported to 
United States NATO allies and other major non- 
NATO allies. 
(13) A Government Accountability Office report 
of October 9, 2001 (GAO–02–120), documented am-
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biguous export control jurisdiction affecting 25 per-
cent of the items that the United States Government 
agreed to control as part of its commitments to the 
Missile Technology Control Regime. The United 
States Government has not clearly determined which 
department has jurisdiction over these items, which 
increases the risk that these items will fall into the 
wrong hands. During both the 108th and 109th Con-
gresses, the House of Representatives passed legisla-
tion mandating that the Administration clarify this 
issue. 
SEC. 103. STRATEGIC REVIEW AND ASSESSMENT OF THE 
UNITED STATES EXPORT CONTROLS SYSTEM. 
(a) REVIEW AND ASSESSMENT.— 
(1) IN
GENERAL.—Not later than March 31, 
2009, the President shall conduct a comprehensive 
and systematic review and assessment of the United 
States arms export controls system in the context of 
the national security interests and strategic foreign 
policy objectives of the United States. 
(2) ELEMENTS.—The review and assessment re-
quired under paragraph (1) shall— 
(A) determine the overall effectiveness of the 
United States arms export controls system in 
order to, where appropriate, strengthen controls, 
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improve efficiency, and reduce unnecessary 
redundancies across Federal Government agen-
cies, through administrative actions, including 
regulations, and to formulate legislative pro-
posals for new authorities that are needed; 
(B) develop processes to ensure better co-
ordination of arms export control activities of 
the Department of State with activities of other 
departments and agencies of the United States 
that are responsible for enforcing United States 
arms export control laws; 
(C) ensure that all items on the Missile 
Technology Control Regime Annex are subject to 
stringent control by the United States Govern-
ment; 
(D) determine the overall effect of arms ex-
port controls on counterterrorism, law enforce-
ment, and infrastructure protection missions of 
the Department of Homeland Security; 
(E) contain a detailed summary of known 
attempts by unauthorized end-users (such as 
international arms traffickers, foreign intel-
ligence agencies, and foreign terrorist organiza-
tions) to acquire items on the United States Mu-
nitions List, including— 
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(i) data on— 
(I) commodities sought, such as 
M–4 rifles, night vision devices, F–14 
spare parts; 
(II) parties involved, such as the 
intended end-users, brokers, consignees, 
and shippers; 
(III) destination countries and 
transit countries; 
(IV) modes of transport; 
(V) trafficking methods, such as 
use of false documentation and front 
companies registered under flags of 
convenience; 
(VI) whether the attempted illicit 
transfer was successful; and 
(VII) 
any 
administrative 
or 
criminal enforcement actions taken by 
the United States and any other gov-
ernment in relation to the attempted 
illicit transfer; 
(ii) a thorough evaluation of the Blue 
Lantern Program, including the adequacy 
of current staffing and funding levels; 
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(iii) a detailed analysis of licensing ex-
emptions and their successful exploitation 
by unauthorized end-users; and 
(iv) an examination of the extent to 
which 
the 
increased 
tendency 
toward 
outsourcing and off-shoring of defense pro-
duction harm United States national secu-
rity and weaken the defense industrial base, 
including direct and indirect impact on em-
ployment, and formulate policies to address 
these trends as well as the policy of some 
United States trading partners to require 
offsets for major sales of defense articles; 
and 
(F) assess the extent to which export control 
policies and practices under the Arms Export 
Control Act promote the protection of basic 
human rights. 
(b) CONGRESSIONAL BRIEFINGS.—The President shall 
provide periodic briefings to the appropriate congressional 
committees on the progress of the review and assessment 
conducted under subsection (a). The requirement to provide 
congressional briefings under this subsection shall terminate 
on the date on which the President transmits to the appro-
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priate congressional committees the report required under 
subsection (c). 
(c) REPORT.—Not later than 18 months after the date 
of the enactment of this Act, the President shall transmit 
to the appropriate congressional committees a report that 
contains the results of the review and assessment conducted 
under subsection (a). The report required by this subsection 
shall contain a certification that the requirement of sub-
section (a)(2)(C) has been met, or if the requirement has 
not been met, the reasons therefor. The report required by 
this subsection shall be submitted in unclassified form, but 
may contain a classified annex, if necessary. 
SEC. 104. PERFORMANCE GOALS FOR PROCESSING OF AP-
PLICATIONS 
FOR 
LICENSES 
TO 
EXPORT 
ITEMS ON USML. 
(a) IN GENERAL.—The Secretary of State, acting 
through the head of the Directorate of Defense Trade Con-
trols of the Department of State, shall establish the following 
goals: 
(1) The processing time for review of each appli-
cation for a license to export items on the United 
States Munitions List (other than applications for 
approval of agreements under part 124 of title 22, 
Code of Federal Regulations (or successor regula-
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tions)) shall be not more than 60 days from the date 
of receipt of the application. 
(2) The processing time for review of each appli-
cation for a commodity jurisdiction determination 
shall be not more than 60 days from the date of re-
ceipt of the application. 
(3) The total number of applications described in 
paragraph (1) that are unprocessed shall be not more 
than 7 percent of the total number of such applica-
tions submitted in the preceding calendar year. 
(b) ADDITIONAL REVIEW.—(1) If an application de-
scribed in paragraph (1) or (2) of subsection (a) is not proc-
essed within the time period described in the respective 
paragraph of such subsection, then the Managing Director 
of the Directorate of Defense Trade Controls or the Deputy 
Assistant Secretary for Defense Trade and Regional Secu-
rity of the Department of State, as appropriate, shall re-
view the status of the application to determine if further 
action is required to process the application. 
(2) If an application described in paragraph (1) or 
(2) of subsection (a) is not processed within 90 days from 
the date of receipt of the application, then the Assistant Sec-
retary for Political-Military Affairs of the Department of 
State shall— 
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(A) review the status of the application to deter-
mine if further action is required to process the appli-
cation; and 
(B) submit to the appropriate congressional com-
mittees a notification of the review conducted under 
subparagraph (A), including a description of the ap-
plication, the reason for delay in processing the ap-
plication, and a proposal for further action to process 
the application. 
(3) For each calendar year, the Managing Director of 
the Directorate of Defense Trade Controls shall review not 
less than 2 percent of the total number of applications de-
scribed in paragraphs (1) and (2) of subsection (a) to en-
sure that the processing of such applications, including de-
cisions to approve, deny, or return without action, is con-
sistent with both policy and regulatory requirements of the 
Department of State. 
(c) UNITED STATES ALLIES.—Congress states that— 
(1) it shall be the policy of the Directorate of De-
fense Trade Controls of the Department of State to en-
sure that, to the maximum extent practicable, the 
processing time for review of applications described in 
subsection (a)(1) to export items that are not subject 
to the requirements of section 36(b) or (c) of the Arms 
Export Control Act (22 U.S.C. 2776(b) or (c)) to 
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United States allies in direct support of combat oper-
ations or peacekeeping or humanitarian operations 
with United States Armed Forces is not more than 7 
days from the date of receipt of the application; and 
(2) it shall be the goal, as appropriate, of the Di-
rectorate of Defense Trade Controls to ensure that, to 
the maximum extent practicable, the processing time 
for review of applications described in subsection 
(a)(1) to export items that are not subject to the re-
quirements of section 36(b) or (c) of the Arms Export 
Control Act to government security agencies of United 
States NATO allies, Australia, New Zealand, Japan, 
South Korea, Israel, and, as appropriate, other major 
non-NATO allies for any purpose other than the pur-
pose described in paragraph (1) is not more than 30 
days from the date of receipt of the application. 
(d) REPORT.—Not later than December 31, 2010, and 
December 31, 2011, the Secretary of State shall submit to 
the appropriate congressional committees a report that con-
tains a detailed description of— 
(1)(A) the average processing time for and num-
ber of applications described in subsection (a)(1) to— 
(i) United States NATO allies, Australia, 
New Zealand, Japan, South Korea, and Israel; 
(ii) other major non-NATO allies; and 
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(iii) all other countries; and 
(B) to the extent practicable, the average proc-
essing time for and number of applications described 
in subsection (b)(1) by item category; 
(2) the average processing time for and number 
of applications described in subsection (a)(2); 
(3) the average processing time for and number 
of applications for agreements described in part 124 
of title 22, Code of Federal Regulations (relating to 
the International Traffic in Arms Regulations); 
(4) any management decisions of the Directorate 
of Defense Trade Controls of the Department of State 
that have been made in response to data contained in 
paragraphs (1) through (3); and 
(5) any advances in technology that will allow 
the time-frames described in subsection (a)(1) to be 
substantially reduced. 
(e) CONGRESSIONAL BRIEFINGS.—If, at the end of any 
month beginning after the date of the enactment of this Act, 
the total number of applications described in subsection 
(a)(1) that are unprocessed is more than 7 percent of the 
total number of such applications submitted in the pre-
ceding calendar year, then the Secretary of State, acting 
through the Under Secretary for Arms Control and Inter-
national Security, the Assistant Secretary for Political- 
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Military Affairs, or the Deputy Assistant Secretary for De-
fense Trade and Regional Security of the Department of 
State, as appropriate, shall brief the appropriate congres-
sional committees on such matters and the corrective meas-
ures that the Directorate of Defense Trade Controls will take 
to comply with the requirements of subsection (a). 
(f) TRANSPARENCY OF COMMODITY JURISDICTION DE-
TERMINATIONS.— 
(1) DECLARATION OF POLICY.—Congress declares 
that the complete confidentiality surrounding several 
hundred commodity jurisdiction determinations made 
each year by the Department of State pursuant to the 
International Traffic in Arms Regulations is not nec-
essary to protect legitimate proprietary interests of 
persons or their prices and customers, is not in the 
best security and foreign policy interests of the United 
States, is inconsistent with the need to ensure a level 
playing field for United States exporters, and detracts 
from United States efforts to promote greater trans-
parency and responsibility by other countries in their 
export control systems. 
(2) PUBLICATION ON INTERNET WEBSITE.—The 
Secretary of State shall— 
(A) upon making a commodity jurisdiction 
determination referred to in paragraph (1) pub-
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(B) maintain on the Internet website of the 
Department of State an archive, that is acces-
sible to the general public and other departments 
and agencies of the United States, of the infor-
mation published under subparagraph (A). 
(g) RULE OF CONSTRUCTION.—Nothing in this section 
shall be construed to prohibit the President or Congress 
from undertaking a thorough review of the national security 
and foreign policy implications of a proposed export of 
items on the United States Munitions List. 
SEC. 105. REQUIREMENT TO ENSURE ADEQUATE STAFF AND 
RESOURCES FOR DDTC OF THE DEPARTMENT 
OF STATE. 
(a) REQUIREMENT.—The Secretary of State shall en-
sure that the Directorate of Defense Trade Controls of the 
Department of State has the necessary staff and resources 
to carry out this subtitle and the amendments made by this 
subtitle. 
(b) MINIMUM NUMBER OF LICENSING OFFICERS.—For 
fiscal year 2010 and each subsequent fiscal year, the Sec-
retary of State shall ensure that the Directorate of Defense 
Trade Controls has at least 1 licensing officer for every 
1,250 applications for licenses and other authorizations to 
export items on the United States Munitions List by not 
later than the third quarter of such fiscal year, based on 
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the number of licenses and other authorizations expected to 
be received during such fiscal year. The Secretary shall en-
sure that in meeting the requirement of this subsection, the 
performance of other functions of the Directorate of Defense 
Trade Controls is maintained and adequate staff is pro-
vided for those functions. 
(c) MINIMUM NUMBER OF STAFF FOR COMMODITY JU-
RISDICTION DETERMINATIONS.—For each of the fiscal years 
2009 through 2011, the Secretary of State shall ensure that 
the Directorate of Defense Trade Controls has, to the extent 
practicable, not less than three individuals assigned to re-
view applications for commodity jurisdiction determina-
tions. 
(d) ENFORCEMENT RESOURCES.—In accordance with 
section 127.4 of title 22, Code of Federal Regulations, U.S. 
Immigration and Customs Enforcement is authorized to in-
vestigate violations of the International Traffic in Arms 
Regulations on behalf of the Directorate of Defense Trade 
Controls of the Department of State. The Secretary of State 
shall ensure that the Directorate of Defense Trade Controls 
has adequate staffing for enforcement of the International 
Traffic in Arms Regulations. 
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SEC. 106. AUDIT BY INSPECTOR GENERAL OF THE DEPART-
MENT OF STATE. 
(a) AUDIT.—Not later than the end of each of the fiscal 
years 2010 and 2011, the Inspector General of the Depart-
ment of State shall conduct an independent audit to deter-
mine the extent to which the Department of State is meeting 
the requirements of sections 104 and 105 of this Act. 
(b) REPORT.—The Inspector General shall submit to 
the appropriate congressional committees a report that con-
tains the result of each audit conducted under subsection 
(a). 
SEC. 107. INCREASED FLEXIBILITY FOR USE OF DEFENSE 
TRADE CONTROLS REGISTRATION FEES. 
(a) IN GENERAL.—Section 45 of the State Department 
Basic Authorities Act of 1956 (22 U.S.C. 2717) is amend-
ed— 
(1) in the first sentence— 
(A) by striking ‘‘For’’ and inserting ‘‘(a) IN 
GENERAL.—For’’; and 
(B) by striking ‘‘Office’’ and inserting ‘‘Di-
rectorate’’; 
(2) by amending the second sentence to read as 
follows: 
‘‘(b) AVAILABILITY OF FEES.—Fees credited to the ac-
count referred to in subsection (a) shall be available only 
for payment of expenses incurred for— 
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‘‘(1) management, 
‘‘(2) licensing (in order to meet the requirements 
of section 105 of the Defense Trade Controls Perform-
ance Improvement Act of 2008 (relating to adequate 
staff and resources of the Directorate of Defense Trade 
Controls)), 
‘‘(3) compliance, 
‘‘(4) policy activities, and 
‘‘(5) facilities, 
of defense trade controls functions.’’; and 
(3) by adding at the end the following: 
‘‘(c) ALLOCATION OF FEES.—In allocating fees for 
payment of expenses described in subsection (b), the Sec-
retary of State shall accord the highest priority to payment 
of expenses incurred for personnel and equipment of the Di-
rectorate of Defense Trade Controls, including payment of 
expenses incurred to meet the requirements of section 105 
of the Defense Trade Controls Performance Improvement 
Act of 2008.’’. 
(b) CONFORMING AMENDMENT.—Section 38(b)(3)(A) 
of the Arms Export Control Act (22 U.S.C. 2778(b)(3)(A)) 
is amended to read as follows: 
‘‘(3)(A) For each fiscal year, 100 percent of registra-
tion fees collected pursuant to paragraph (1) shall be cred-
ited to a Department of State account, to be available with-
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out fiscal year limitation. Fees credited to that account 
shall be available only for the payment of expenses incurred 
for— 
‘‘(i) management, 
‘‘(ii) licensing (in order to meet the requirements 
of section 105 of the Defense Trade Controls Perform-
ance Improvement Act of 2008 (relating to adequate 
staff and resources of the Directorate of Defense Trade 
Controls)), 
‘‘(iii) compliance, 
‘‘(iv) policy activities, and 
‘‘(v) facilities, 
of defense trade controls functions.’’. 
(c) USE
OF
CIVIL
PENALTIES.—Not more than 
$10,000,000 of the amount of civil penalties collected in 
each of fiscal years 2008, 2009, 2010, 2011 and 2012 pursu-
ant to section 38(e) of the Arms Export Control Act (22 
U.S.C. 2778(e)) shall be made available for the expenses of 
the Directorate of Defense Trade Controls of the Department 
of State. 
SEC. 108. REVIEW OF ITAR AND USML. 
(a) IN GENERAL.—The Secretary of State shall review, 
with the assistance of United States manufacturers and 
other interested parties described in section 111(2) of this 
Act, the International Traffic in Arms Regulations and the 
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United States Munitions List to determine those tech-
nologies and goods that warrant different or additional con-
trols. 
(b) CONDUCT OF REVIEW.—In carrying out the review 
required under subsection (a), the Secretary of State shall 
review not less than 20 percent of the technologies and goods 
on the International Traffic in Arms Regulations and the 
United States Munitions List in each calendar year so that 
for the 5-year period beginning with calendar year 2009, 
and for each subsequent 5-year period, the International 
Traffic in Arms Regulations and the United States Muni-
tions List will be reviewed in their entirety. 
(c) REPORT.—The Secretary of State shall submit to 
the appropriate congressional committees an annual report 
on the results of the review carried out under this section. 
SEC. 109. SPECIAL LICENSING AUTHORIZATION FOR CER-
TAIN EXPORTS TO NATO MEMBER STATES, 
AUSTRALIA, JAPAN, AND NEW ZEALAND. 
(a) IN GENERAL.—Section 38 of the Arms Export Con-
trol Act (22 U.S.C. 2778) is amended by adding at the end 
the following: 
‘‘(k) SPECIAL LICENSING AUTHORIZATION FOR CER-
TAIN EXPORTS TO NATO MEMBER STATES, AUSTRALIA, 
JAPAN, NEW ZEALAND, ISRAEL, AND SOUTH KOREA.— 
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‘‘(1) AUTHORIZATION.—(A) The President may 
provide for special licensing authorization for exports 
of United States-manufactured spare and replacement 
parts or components listed in an application for such 
special licensing authorization in connection with de-
fense items previously exported to NATO member 
states, Australia, Japan, New Zealand, Israel, and 
South Korea. A special licensing authorization issued 
pursuant to this clause shall be effective for a period 
not to exceed 5 years. 
‘‘(B) An authorization may be issued under sub-
paragraph (A) only if the applicable government of 
the country described in subparagraph (A), acting 
through the applicant for the authorization, certifies 
that— 
‘‘(i) the export of spare and replacement 
parts or components supports a defense item pre-
viously lawfully exported; 
‘‘(ii) the spare and replacement parts or 
components will be transferred to a defense agen-
cy of a country described in subparagraph (A) 
that is a previously approved end-user of the de-
fense items and not to a distributor or a foreign 
consignee of such defense items; 
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‘‘(iii) the spare and replacement parts or 
components will not to be used to materially en-
hance, optimize, or otherwise modify or upgrade 
the capability of the defense items; 
‘‘(iv) the spare and replacement parts or 
components relate to a defense item that is 
owned, operated, and in the inventory of the 
armed forces a country described in subpara-
graph (A); 
‘‘(v) the export of spare and replacement 
parts or components will be effected using the 
freight forwarder designated by the purchasing 
country’s diplomatic mission as responsible for 
handling transfers under chapter 2 of this Act as 
required under regulations; and 
‘‘(vi) the spare and replacement parts or 
components to be exported under the special li-
censing authorization are specifically identified 
in the application. 
‘‘(C) An authorization may not be issued under 
subparagraph (A) for purposes of establishing offshore 
procurement arrangements or producing defense arti-
cles offshore. 
‘‘(D)(i) For purposes of this subsection, the term 
‘United States-manufactured spare and replacement 
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parts or components’ means
spare and replacement 
parts or components— 
‘‘(I) with respect to which— 
‘‘(aa) United States-origin content 
costs constitute at least 85 percent of the 
total content costs; 
‘‘(bb) United States manufacturing 
costs constitute at least 85 percent of the 
total manufacturing costs; and 
‘‘(cc) foreign content, if any, is limited 
to content from countries eligible to receive 
exports of items on the United States Muni-
tions List under the International Traffic 
in Arms Regulations (other than de mini-
mis foreign content); and 
‘‘(II) that were last substantially trans-
formed in the United States. 
‘‘(ii) For purposes of clause (i)(I)(aa) and (bb), 
the costs of non-United States-origin content shall be 
determined using the final price or final cost associ-
ated with the non-United States-origin content. 
‘‘(2) INAPPLICABILITY
PROVISIONS.—(A) The 
provisions of this subsection shall not apply with re-
spect to re-exports or re-transfers of spare and re-
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placement parts or components and related services of 
defense items described in paragraph (1). 
‘‘(B) The congressional notification requirements 
contained in section 36(c) of this Act shall not apply 
with respect to an authorization issued under para-
graph (1).’’. 
(b) EFFECTIVE DATE.—The President shall issue regu-
lations to implement amendments made by subsection (a) 
not later than 180 days after the date of the enactment of 
this Act. 
SEC. 110. AVAILABILITY OF INFORMATION ON THE STATUS 
OF LICENSE APPLICATIONS UNDER CHAPTER 
3 OF THE ARMS EXPORT CONTROL ACT. 
Chapter 3 of the Arms Export Control Act (22 U.S.C. 
2771 et seq.) is amended by inserting after section 38 the 
following new section: 
‘‘SEC. 38A. AVAILABILITY OF INFORMATION ON THE STATUS 
OF 
LICENSE 
APPLICATIONS 
UNDER 
THIS 
CHAPTER. 
‘‘(a) AVAILABILITY OF INFORMATION.—Not later than 
one year after the date of the enactment of the Defense Trade 
Controls Performance Improvement Act of 2008, the Presi-
dent shall make available to persons who have pending li-
cense applications under this chapter and the committees 
of jurisdiction the ability to access electronically current in-
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formation on the status of each license application required 
to be submitted under this chapter. 
‘‘(b) MATTERS TO BE INCLUDED.—The information 
referred to in subsection (a) shall be limited to the following: 
‘‘(1) The case number of the license application. 
‘‘(2) The date on which the license application is 
received by the Department of State and becomes an 
‘open application’. 
‘‘(3) The date on which the Directorate of De-
fense Trade Controls makes a determination with re-
spect to the license application or transmits it for 
interagency review, if required. 
‘‘(4) The date on which the interagency review 
process for the license application is completed, if 
such a review process is required. 
‘‘(5) The date on which the Department of State 
begins consultations with the congressional commit-
tees of jurisdiction with respect to the license applica-
tion. 
‘‘(6) The date on which the license application is 
sent to the congressional committees of jurisdiction.’’. 
SEC. 111. SENSE OF CONGRESS. 
It is the sense of Congress that— 
(1)(A) the advice provided to the Secretary of 
State by the Defense Trade Advisory Group (DTAG) 
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supports the regulation of defense trade and helps en-
sure that United States national security and foreign 
policy interests continue to be protected and advanced 
while helping to reduce unnecessary impediments to 
legitimate exports in order to support the defense re-
quirements of United States friends and allies; and 
(B) therefore, the Secretary of State should share 
significant planned rules and policy shifts with 
DTAG for comment; and 
(2) recognizing the constraints imposed on the 
Department of State by the nature of a voluntary or-
ganization such as DTAG, the Secretary of State is 
encouraged to ensure that members of DTAG are 
drawn from a representative cross-section of subject 
matter experts from the United States defense indus-
try, relevant trade and labor associations, academic, 
and foundation personnel. 
SEC. 112. DEFINITIONS. 
In this subtitle: 
(1) 
APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional commit-
tees’’ means the Committee on Foreign Affairs of the 
House of Representatives and the Committee on For-
eign Relations of the Senate. 
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(2) INTERNATIONAL TRAFFIC IN ARMS REGULA-
TIONS; ITAR.—The term ‘‘International Traffic in 
Arms Regulations’’ or ‘‘ITAR’’ means those regula-
tions contained in parts 120 through 130 of title 22, 
Code of Federal Regulations (or successor regula-
tions). 
(3) MAJOR NON-NATO ALLY.—The term ‘‘major 
non-NATO ally’’ means a country that is designated 
in accordance with section 517 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2321k) as a major non- 
NATO ally for purposes of the Foreign Assistance Act 
of 1961 (22 U.S.C. 2151 et seq.) and the Arms Export 
Control Act (22 U.S.C. 2751 et seq.). 
(4) MISSILE
TECHNOLOGY
CONTROL
REGIME; 
MTCR.—The term ‘‘Missile Technology Control Re-
gime’’ or ‘‘MTCR’’ has the meaning given the term in 
section 11B(c)(2) of the Export Administration Act of 
1979 (50 U.S.C. App. 2401b(c)(2)). 
(5) MISSILE
TECHNOLOGY
CONTROL
REGIME 
ANNEX; MTCR ANNEX.—The term ‘‘Missile Technology 
Control Regime Annex’’ or ‘‘MTCR Annex’’ has the 
meaning given the term in section 11B(c)(4) of the 
Export Administration Act of 1979 (50 U.S.C. App. 
2401b(c)(4)). 
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(6) OFFSETS.—The term ‘‘offsets’’ includes com-
pensation practices required of purchase in either 
government-to-government or commercial sales of de-
fense articles or defense services under the Arms Ex-
port Control Act (22 U.S.C. 2751 et seq.) and the 
International Traffic in Arms Regulations. 
(7) UNITED STATES MUNITIONS LIST; USML.— 
The term ‘‘United States Munitions List’’ or 
‘‘USML’’ means the list referred to in section 38(a)(1) 
of the Arms Export Control Act (22 U.S.C. 
2778(a)(1)). 
SEC. 113. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated such sums as 
may be necessary for fiscal year 2009 and each subsequent 
fiscal year to carry out this subtitle and the amendments 
made by this subtitle. 
Subtitle B—Miscellaneous 
Provisions 
SEC. 121. REPORT ON SELF-FINANCING OPTIONS FOR EX-
PORT LICENSING FUNCTIONS OF DDTC OF 
THE DEPARTMENT OF STATE. 
Not later than 90 days after the date of the enactment 
of this Act, the Secretary of State shall submit to the appro-
priate congressional committees a report on possible mecha-
nisms to place the export licensing functions of the Direc-
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torate of Defense Trade Controls of the Department of State 
on a 100 percent self-financing basis. 
SEC. 122. EXPEDITING CONGRESSIONAL DEFENSE EXPORT 
REVIEW PERIOD FOR SOUTH KOREA AND 
ISRAEL. 
The Arms Export Control Act (22 U.S.C. 2751 et seq.) 
is amended— 
(1) in sections 3(d)(2)(B), 3(d)(3)(A)(i), 3(d)(5), 
21(e)(2)(A), 
36(b)(2), 
36(c)(2)(A), 
36(d)(2)(A), 
62(c)(1), and 63(a)(2) by inserting ‘‘the Republic of 
Korea, Israel,’’ before ‘‘or New Zealand’’; 
(2) in section 3(b)(2) by inserting ‘‘the Govern-
ment of the Republic of Korea,’’ before ‘‘or the Gov-
ernment of New Zealand’’; and 
(3) in section 21(h)(1)(A), by inserting ‘‘the Re-
public of Korea,’’ before ‘‘or Israel’’. 
SEC. 123. AVAILABILITY TO CONGRESS OF PRESIDENTIAL 
DIRECTIVES 
REGARDING 
UNITED 
STATES 
ARMS EXPORT POLICIES, PRACTICES, AND 
REGULATIONS. 
(a) IN GENERAL.—The President shall make available 
to the appropriate congressional committees the text of each 
Presidential directive regarding United States export poli-
cies, practices, and regulations relating to the implementa-
tion of the Arms Export Control Act (22 U.S.C. 2751 et 
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seq.) not later than 15 days after the date on which the 
directive has been signed or authorized by the President. 
(b) TRANSITION PROVISION.—Any Presidential direc-
tive described in subsection (a) that is signed or authorized 
by the President on or after January 1, 2008, and before 
the date of the enactment of this Act shall be made available 
to the appropriate congressional committees not later than 
90 days after the date of the enactment of this Act. 
(c) FORM.—To the maximum extent practicable, the 
Presidential directives required to be made available to the 
appropriate congressional committees under this section 
shall be made available on an unclassified basis. 
SEC. 124. INCREASE IN CONGRESSIONAL NOTIFICATION 
THRESHOLDS AND EXPEDITING CONGRES-
SIONAL REVIEW FOR SOUTH KOREA AND 
ISRAEL. 
(a) FOREIGN MILITARY SALES.— 
(1) IN GENERAL.—Subsection (b) of section 36 of 
the Arms Export Control Act (22 U.S.C. 2776) is 
amended— 
(A) 
by 
redesignating 
paragraphs 
(2) 
through (6) as paragraphs (3) through (7), re-
spectively; and 
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(B) by striking ‘‘The letter of offer shall not 
be issued’’ and all that follows through ‘‘enacts 
a joint resolution’’ and inserting the following: 
‘‘(2) The letter of offer shall not be issued— 
‘‘(A) with respect to a proposed sale of any 
defense articles or defense services under this Act 
for $200,000,000 or more, any design and con-
struction services for $300,000,000 or more, or 
any major defense equipment for $75,000,000 or 
more, to the North Atlantic Treaty Organization 
(NATO), any member country of NATO, Japan, 
Australia, the Republic of Korea, Israel, or New 
Zealand, if Congress, within 15 calendar days 
after receiving such certification, or 
‘‘(B) with respect to a proposed sale of any 
defense articles or services under this Act for 
$100,000,000 or more, any design and construc-
tion services for $200,000,000 or more, or any 
major defense equipment for $50,000,000 or 
more, to any other country or organization, if 
Congress, within 30 calendar days after receiv-
ing such certification, 
enacts a joint resolution’’. 
(2) 
TECHNICAL
AND
CONFORMING
AMEND-
MENTS.—Such section is further amended— 
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(A) in subsection (b)— 
(i) in paragraph (6)(C), as redesig-
nated, by striking ‘‘Subject to paragraph 
(6), if’’ and inserting ‘‘If’’; and 
(ii) by striking paragraph (7), as re-
designated; and 
(B) in subsection (c)(4), by striking ‘‘sub-
section (b)(5)’’ each place it appears and insert-
ing ‘‘subsection (b)(6)’’. 
(b) COMMERCIAL SALES.—Subsection (c) of such sec-
tion is amended— 
(1) in paragraph (2)— 
(A) in subparagraph (A)— 
(i) by inserting after ‘‘for an export’’ 
the following: ‘‘of any major defense equip-
ment sold under a contract in the amount 
of $75,000,000 or more or of defense articles 
or defense services sold under a contract in 
the amount of $200,000,000 or more, (or, in 
the case of a defense article that is a fire-
arm controlled under category I of the 
United States Munitions List, $1,000,000 or 
more)’’; and 
(ii) by striking ‘‘Organization,’’ and 
inserting ‘‘Organization (NATO),’’ and by 
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further striking ‘‘that Organization’’ and 
inserting ‘‘NATO’’; and 
(B) in subparagraph (C), by inserting after 
‘‘license’’ the following: ‘‘for an export of any 
major defense equipment sold under a contract 
in the amount of $50,000,000 or more or of de-
fense articles or defense services sold under a 
contract in the amount of $100,000,000 or more, 
(or, in the case of a defense article that is a fire-
arm controlled under category I of the United 
States Munitions List, $1,000,000 or more)’’; 
and 
(2) by striking paragraph (5). 
SEC. 125. DIPLOMATIC EFFORTS TO STRENGTHEN NA-
TIONAL AND INTERNATIONAL ARMS EXPORT 
CONTROLS. 
(a) SENSE OF CONGRESS.—It is the sense of Congress 
that the President should redouble United States diplomatic 
efforts to strengthen national and international arms export 
controls by establishing a senior-level initiative to ensure 
that such arms export controls are comparable to and sup-
portive of United States arms export controls, particularly 
with respect to countries of concern to the United States. 
(b) REPORT.—No later than one year after the date 
of the enactment of this Act, and annually thereafter for 
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four years, the President shall transmit to the appropriate 
committees of Congress a report on United States diplo-
matic efforts described in subsection (a). 
SEC. 126. REPORTING REQUIREMENT FOR UNLICENSED EX-
PORTS. 
Section 655(b) of the Foreign Assistance Act of 1961 
(22 U.S.C. 2415(b)) is amended— 
(1) in paragraph (2), by striking ‘‘or’’ at the 
end; 
(2) in paragraph (3), by striking the period at 
the end and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(4) were exported without a license under sec-
tion 38 of the Arms Export Control Act (22 U.S.C. 
2778) pursuant to an exemption established under the 
International Traffic in Arms Regulations, other than 
defense articles exported in furtherance of a letter of 
offer and acceptance under the Foreign Military Sales 
program or a technical assistance or manufacturing 
license agreement, including the specific exemption 
provision in the regulation under which the export 
was made.’’. 
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SEC. 127. REPORT ON VALUE OF MAJOR DEFENSE EQUIP-
MENT AND DEFENSE ARTICLES EXPORTED 
UNDER SECTION 38 OF THE ARMS EXPORT 
CONTROL ACT. 
Section 38 of the Arms Export Control Act (22 U.S.C. 
2778) is amended by adding at the end the following: 
‘‘(l) REPORT.— 
‘‘(1) IN GENERAL.—The President shall transmit 
to the appropriate congressional committees a report 
that contains a detailed listing, by country and by 
international organization, of the total dollar value of 
major defense equipment and defense articles exported 
pursuant to licenses authorized under this section for 
the previous fiscal year. 
‘‘(2) INCLUSION IN ANNUAL BUDGET.—The re-
port required by this subsection shall be included in 
the supporting information of the annual budget of 
the United States Government required to be sub-
mitted to Congress under section 1105 of title 31, 
United States Code. 
‘‘(3) APPROPRIATE CONGRESSIONAL COMMITTEES 
DEFINED.—In this subsection, the term ‘appropriate 
congressional committees’ means the Committee on 
Foreign Affairs of the House of Representatives and 
the Committee on Foreign Relations of the Senate.’’. 
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SEC. 128. REPORT ON SATELLITE EXPORT CONTROLS. 
(a) REPORT.—The President shall report to the appro-
priate committees of the Congress, not later than 180 days 
after the date of the enactment of this Act regarding— 
(1) the extent to which current United States ex-
port controls on satellites and related items under the 
Arms Export Control Act are successfully preventing 
the transfer of militarily-sensitive technologies to 
countries of concern, especially the People’s Republic 
of China; 
(2) the extent to which comparable satellites and 
related items are available from foreign sources with-
out comparable export controls; and 
(3) whether the current export controls on sat-
ellites and related items should be altered and in 
what manner, including whether other incentives or 
disincentives should also be employed to discourage 
exports of satellites and related items to the People’s 
Republic of China by any country. 
(b) DEFINITIONS.—In this section, the terms ‘‘sat-
ellite’’ and ‘‘related items’’ mean satellites and all specifi-
cally designed or modified systems or subsystems, compo-
nents, parts, accessories, attachments, and associated equip-
ment for satellites as covered under category XV of the 
International Traffic in Arms Regulations (as in effect on 
the date of the enactment of this Act). 
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SEC. 129. DEFINITION. 
In this subtitle, the term ‘‘appropriate congressional 
committees’’ means the Committee on Foreign Affairs of the 
House of Representatives and the Committee on Foreign Re-
lations of the Senate. 
TITLE II—SECURITY ASSISTANCE 
AND RELATED SUPPORT FOR 
ISRAEL 
SEC. 201. ASSESSMENT OF ISRAEL’S QUALITATIVE MILI-
TARY EDGE OVER MILITARY THREATS. 
(a) ASSESSMENT REQUIRED.—The President shall 
carry out an empirical and qualitative assessment on an 
ongoing basis of the extent to which Israel possesses a quali-
tative military edge over military threats to Israel. The as-
sessment required under this subsection shall be sufficiently 
robust so as to facilitate comparability of data over concur-
rent years. 
(b) USE OF ASSESSMENT.—The President shall ensure 
that the assessment required under subsection (a) is used 
to inform the review by the United States of applications 
to sell defense articles and defense services under the Arms 
Export Control Act (22 U.S.C. 2751 et seq.) to countries 
in the Middle East. 
(c) REPORTS.— 
(1) INITIAL REPORT.—Not later than 180 days 
after the date of the enactment of this Act, the Presi-
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dent shall transmit to the appropriate congressional 
committees a report on the initial assessment required 
under subsection (a). 
(2) QUADRENNIAL REPORT.—Not later than four 
years after the date on which the President transmits 
the initial report under paragraph (1), and every 
four years thereafter, the President shall transmit to 
the appropriate congressional committees a report on 
the most recent assessment required under subsection 
(a). 
(d) CERTIFICATION.—Section 36 of the Arms Export 
Control Act (22 U.S.C. 2776) is amended by adding at the 
end the following: 
‘‘(h) 
CERTIFICATION
REQUIREMENT
RELATING 
ISRAEL’S QUALITATIVE MILITARY EDGE.— 
‘‘(1) IN GENERAL.—Any certification relating to 
a proposed sale or export of defense articles or defense 
services under this section to any country in the Mid-
dle East other than Israel shall include a determina-
tion that the sale or export of the defense articles or 
defense services will not adversely affect Israel’s quali-
tative military edge over military threats to Israel. 
‘‘(2) DEFINITION.—In this subsection, the term 
‘qualitative military edge’ has the meaning given the 
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term in section 205 of the Security Assistance and 
Arms Export Control Reform Act of 2008.’’. 
SEC. 202. REPORT ON UNITED STATES’ COMMITMENTS TO 
THE SECURITY OF ISRAEL. 
(a) INITIAL REPORT.—Not later than 30 days after the 
date of the enactment of this Act, the President shall trans-
mit to the appropriate congressional committees a report 
that contains— 
(1) a complete, unedited, and unredacted copy of 
each assurance made by United States Government 
officials to officials of the Government of Israel re-
garding Israel’s security and maintenance of Israel’s 
qualitative military edge, as well as any other assur-
ance regarding Israel’s security and maintenance of 
Israel’s qualitative military edge provided in conjunc-
tion with exports under the Arms Export Control Act 
(22 U.S.C. 2751 et seq.), for the period beginning on 
January 1, 1975, and ending on the date of the enact-
ment of this Act; and 
(2) an analysis of the extent to which, and by 
what means, each such assurance has been and is con-
tinuing to be fulfilled. 
(b) SUBSEQUENT REPORTS.— 
(1) NEW
ASSURANCES
AND
REVISIONS.—The 
President shall transmit to the appropriate congres-
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sional committees a report that contains the informa-
tion required under subsection (a) with respect to— 
(A) each assurance described in subsection 
(a) made on or after the date of the enactment 
of this Act, or 
(B) revisions to any assurance described in 
subsection (a) or subparagraph (A) of this para-
graph, 
within 15 days of the new assurance or revision being 
conveyed. 
(2) 5-YEAR REPORTS.—Not later than 5 years 
after the date of the enactment of this Act, and every 
5 years thereafter, the President shall transmit to the 
appropriate congressional committees a report that 
contains the information required under subsection 
(a) with respect to each assurance described in sub-
section (a) or paragraph (1)(A) of this subsection and 
revisions to any assurance described in subsection (a) 
or paragraph (1)(A) of this subsection during the pre-
ceding 5-year period. 
(c) FORM.—Each report required by this section shall 
be transmitted in unclassified form, but may contain a clas-
sified annex, if necessary. 
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SEC. 203. WAR RESERVES STOCKPILE. 
(a) DEPARTMENT OF DEFENSE APPROPRIATIONS ACT, 
2005.—Section 12001(d) of the Department of Defense Ap-
propriations Act, 2005 (Public Law 108–287; 118 Stat. 
1011), is amended by striking ‘‘4’’ and inserting ‘‘6’’. 
(b) FOREIGN ASSISTANCE ACT
OF 1961.—Section 
514(b)(2)(A) of the Foreign Assistance Act of 1961 (22 
U.S.C. 2321h(b)(2)(A)) is amended by striking ‘‘fiscal years 
2007 and 2008’’ and inserting ‘‘fiscal years 2009 and 
2010’’. 
(c) EFFECTIVE DATE.—The amendment made by sub-
section (a) takes effect on August 5, 2008. 
SEC. 204. IMPLEMENTATION OF MEMORANDUM OF UNDER-
STANDING WITH ISRAEL. 
(a) IN GENERAL.—Of the amount made available for 
fiscal year 2009 for assistance under the program author-
ized by section 23 of the Arms Export Control Act (22 
U.S.C. 2763) (commonly referred to as the ‘‘Foreign Mili-
tary Financing Program’’), the amount specified in sub-
section (b) is authorized to be made available on a grant 
basis for Israel. 
(b) COMPUTATION OF AMOUNT.—The amount referred 
to in subsection (a) is the amount equal to— 
(1) the amount specified under the heading ‘‘For-
eign Military Financing Program’’ for Israel for fis-
cal year 2008; plus 
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(2) $150,000,000. 
SEC. 205. DEFINITIONS. 
In this subtitle— 
(1) the term ‘‘appropriate congressional commit-
tees’’ means the Committee on Foreign Affairs of the 
House of Representatives and the Committee on For-
eign Relations of the Senate; and 
(2) the term ‘‘qualitative military edge’’ means 
the ability to counter and defeat any credible conven-
tional military threat from any individual state or 
possible coalition of states or from non-state actors, 
while sustaining minimal damages and casualties, 
through the use of superior military means, possessed 
in sufficient quantity, including weapons, command, 
control, communication, intelligence, surveillance, 
and reconnaissance capabilities that in their technical 
characteristics are superior in capability to those of 
such other individual or possible coalition of states or 
non-state actors. 
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(2) The deferral of a decision by the European 
Council to terminate its arms embargo following 
adoption of the resolutions specified in paragraph (1), 
the visit by the President of the United States to Eu-
rope, and growing concern among countries in the re-
gions and the general public on both sides of the At-
lantic, was welcomed by the Congress. 
(3) The decision by the European Parliament on 
April 14, 2005, by a vote of 421 to 85, to oppose the 
lifting of the European Union’s arms embargo on the 
People’s Republic of China, and resolutions issued by 
a number of elected parliamentary bodies in Europe 
also opposing the lifting of the arms embargo, was 
also welcomed by the Congress as a reassurance that 
its European friends and allies understood the grav-
ity of prematurely lifting the embargo. 
(4) The onset of a strategic dialogue between the 
European Commission and the Government of the 
United States on the security situation in East Asia 
holds out the hope that a greater understanding will 
emerge of the consequences of European assistance to 
the military buildup of the People’s Republic of 
China for peace and stability in that region, to the 
security interests of the United States and its friends 
and allies in the region, and, in particular, to the 
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