I
106TH CONGRESS
2D SESSION
H. R. 4919
To amend the Foreign Assistance Act of 1961 and the Arms Export Control
Act to make improvements to certain defense and security assistance
provisions under those Acts, to authorize the transfer of naval vessels
to certain foreign countries, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 24, 2000
Mr. GILMAN (for himself and Mr. GEJDENSON) introduced the following bill;
which was referred to the Committee on International Relations
JULY 24, 2000
Committee on International Relations discharged; considered under suspension
of the rules and passed
A BILL
To amend the Foreign Assistance Act of 1961 and the Arms
Export Control Act to make improvements to certain
defense and security assistance provisions under those
Acts, to authorize the transfer of naval vessels to certain
foreign countries, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Defense and Security
Assistance Act of 2000’’.
TITLE I—SECURITY ASSISTANCE
SEC. 101. ADDITIONS TO UNITED STATES WAR RESERVE
STOCKPILES FOR ALLIES.
Section 514(b)(2) of the Foreign Assistance Act of
1961 (22 U.S.C. 2321h(b)(2)) is amended to read as fol-
lows:
‘‘(2)(A) The value of such additions to stock-
piles of defense articles in foreign countries shall not
exceed $50,000,000 for fiscal year 2001.
‘‘(B) Of the amount specified in subparagraph
(A) for fiscal year 2001, not more than $50,000,000
may be made available for stockpiles in the Republic
of Korea.’’.
SEC. 102. TRANSFER OF CERTAIN OBSOLETE OR SURPLUS
DEFENSE ARTICLES IN THE WAR RESERVE
STOCKPILES FOR ALLIES TO ISRAEL.
(a) TRANSFERS TO ISRAEL.—
(1) AUTHORITY.—Notwithstanding section 514
of the Foreign Assistance Act of 1961 (22 U.S.C.
2321h), the President is authorized to transfer to
Israel, in return for concessions to be negotiated by
the Secretary of Defense, with the concurrence of
the Secretary of State, any or all of the items de-
scribed in paragraph (2).
(d) EXPIRATION OF AUTHORITY.—No transfer may
be made under the authority of this section 3 years after
the date of enactment of this Act.
SEC. 103. EXCESS DEFENSE ARTICLES FOR MONGOLIA.
(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
Mongolia.
(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.
SEC. 104. SENSE OF CONGRESS RELATING TO MILITARY
EQUIPMENT FOR THE PHILIPPINES.
(a) IN GENERAL.—It is the sense of Congress that
the United States Government should work with the Gov-
ernment of the Republic of the Philippines to enable that
Government to procure military equipment that can be
used to upgrade the capabilities and to improve the quality
of life of the armed forces of the Philippines.
(b) MILITARY EQUIPMENT.—Military equipment de-
scribed in subsection (a) should include—
(1) naval vessels, including amphibious landing
crafts, for patrol, search-and-rescue, and transport;
(2) F–5 aircraft and other aircraft that can as-
sist with reconnaissance, search-and-rescue, and re-
supply;
(3) attack, transport, and search-and-rescue
helicopters; and
(4) vehicles and other personnel equipment.
SEC. 105. ANNUAL MILITARY ASSISTANCE REPORT.
Section 655(b)(3) of the Foreign Assistance Act of
1961 (22 U.S.C. 2415(b)(3)) is amended by inserting be-
fore the period at the end the following: ‘‘, including those
defense articles that were exported’’.
SEC. 106. REQUIREMENTS RELATING TO COUNTRY EXEMP-
TIONS FOR LICENSING OF DEFENSE ITEMS
FOR EXPORT TO FOREIGN COUNTRIES.
(a) REQUIREMENTS OF EXEMPTION.—Section 38 of
the Arms Export Control Act (22 U.S.C. 2778) is amend-
ed by adding at the end the following:
‘‘(j) REQUIREMENTS RELATING TO COUNTRY EX-
EMPTIONS FOR LICENSING OF DEFENSE ITEMS FOR EX-
PORT TO FOREIGN COUNTRIES.—
‘‘(1) REQUIREMENT
FOR
BILATERAL
AGREE-
MENT.—
‘‘(A) IN
GENERAL.—The President may
utilize the regulatory or other authority pursu-
ant to this Act to exempt a foreign country
from the licensing requirements of this Act with
respect to exports of defense items only if the
United States Government has concluded an
agreement described in paragraph (2) with the
foreign country that is legally-binding as a mat-
ter of domestic and international law on both
the United States and that country.
‘‘(B) EXCEPTION.—The requirement to
conclude a bilateral agreement in accordance
with subparagraph (A) shall not apply with re-
spect to an exemption for Canada from the li-
censing requirements of this Act for the export
of defense items.
‘‘(2) REQUIREMENTS
OF
BILATERAL
AGREE-
MENT.—A bilateral agreement referred to paragraph
(1)—
‘‘(A) shall, at a minimum, require the for-
eign country, as necessary, to revise its policies
and practices, and promulgate or enact nec-
essary modifications to its laws and regulations
to establish an export control regime that is at
least comparable to United States law, regula-
tion, and policy regarding—
‘‘(i) handling of all United States-ori-
gin defense items exported to the foreign
country, including prior written United
States Government approval for any reex-
ports to third countries;
‘‘(ii) end-use and retransfer control
commitments, including securing binding
end-use and retransfer control commit-
ments from all end-users, including such
documentation as is needed in order to en-
sure compliance and enforcement with re-
spect to such United States-origin defense
items;
‘‘(iii) establishment of a procedure
comparable to a ‘watchlist’ (if such a
watchlist does not exist) and full coopera-
tion with United States Government law
enforcement and intelligence agencies to
allow for sharing of export and import doc-
umentation and background information
on foreign businesses and individuals em-
ployed by or otherwise connected to those
businesses; and
‘‘(iv) establishment of a list of con-
trolled defense items to ensure coverage of
those items to be exported under the ex-
emption; and
‘‘(B) should, at a minimum, require the
foreign country, as necessary, to revise its poli-
cies and practices, and promulgate or enact
necessary modifications to its laws and regula-
tions to establish an export control regime that
is at least comparable to United States law,
regulation, and policy regarding—
‘‘(i) controls on the export of tangible
or intangible technology, including via fax,
phone, and electronic media;
‘‘(ii) appropriate controls on unclassi-
fied information exported to foreign na-
tionals;
‘‘(iii) controls on arms trafficking and
brokering; and
‘‘(iv) violations and penalties of export
control laws.
‘‘(3) ADVANCE NOTIFICATION.—Not less than
30 days before authorizing an exemption for a for-
eign country from the licensing requirements of this
Act for the export of defense items, the President
shall transmit to the Committee on International
Relations of the House of Representatives and the
Committee on Foreign Relations of the Senate a no-
tification that—
‘‘(A) the United States has entered into a
bilateral agreement with that foreign country
satisfying all requirements set forth in para-
graph (2);
‘‘(B) the foreign country has promulgated
or enacted all necessary modifications to its
laws and regulations to comply with its obliga-
tions under the bilateral agreement with the
United States; and
‘‘(C) confirms that the appropriate con-
gressional committees will continue to receive
notifications pursuant to the authorities, proce-
dures, and practices of section 36 of this Act
for defense exports to a foreign country to
which that section would apply and without re-
gard to any form of defense export licensing ex-
emption otherwise available for that country.
‘‘(4) DEFINITIONS.—In this section:
‘‘(A) DEFENSE ITEM.—The term ‘defense
item’ means defense articles, defense services,
and related technical data.
‘‘(B) APPROPRIATE CONGRESSIONAL COM-
MITTEES.—The term ‘appropriate congressional
committees’ means—
‘‘(i) the Committee on International
Relations and the Committee on Appro-
priations of the House of Representatives;
and
‘‘(ii) the Committee on Foreign Rela-
tions and the Committee on Appropriations
of the Senate.’’.
(b) NOTIFICATION OF EXEMPTION.—Section 38(f) of
the Arms Export Control Act (22 U.S.C. 2778(f)) is
amended—
(1) by inserting ‘‘(1)’’ after ‘‘(f)’’; and
(2) by adding at the end the following:
‘‘(2) The President may not authorize an exemption
for a foreign country from the licensing requirements of
this Act for the export of defense items under subsection
(j) or any other provision of this Act until 45 days after
the date on which the President has transmitted to the
Committee on International Relations of the House of
Representatives and the Committee on Foreign Relations
of the Senate a notification that includes—
‘‘(A) a description of the scope of the exemp-
tion, including a detailed summary of the defense ar-
ticles, defense services, and related technical data
proposed to be exported under the exemption; and
‘‘(B) a determination by the Attorney General
that the bilateral agreement requires sufficient docu-
mentation relating to the export of United States de-
fense articles, defense services, and related technical
data under an exemption which will be compiled and
maintained in order to facilitate law enforcement ef-
forts to detect, prevent, and prosecute criminal viola-
tions of any provision of this Act, including the ef-
forts on the part of countries and factions engaged
in international terrorism to illicitly acquire sophisti-
cated United States weaponry.’’.
(c) NOTIFICATION RELATING TO EXPORT OF COM-
MERCIAL
COMMUNICATIONS
SATELLITE.—Section
36(c)(1) of the Arms Export Control Act (22 U.S.C.
2776(c)(1)) is amended in the first sentence by inserting
at the end before the period the following: ‘‘, except that
a certification shall not be required in the case of an appli-
cation for a license for export of a commercial communica-
tions satellite designated on the United States Munitions
List for launch from, and by nationals of, the United
States, or the territory of a member country of the North
Atlantic Treaty Organization (NATO), the Russian Fed-
eration, Ukraine, Australia, Japan, or New Zealand’’.
SEC. 107. REPORT ON GOVERNMENT-TO-GOVERNMENT
ARMS SALES END-USE MONITORING PRO-
GRAM.
Not later than 90 days after the date of the enact-
ment of this Act, the President shall prepare and transmit
to the Committee on International Relations and the Com-
mittee on Foreign Relations of the Senate a report that
contains a summary of the status of the efforts of the De-
fense Security Cooperation Agency to implement the End-
Use Monitoring Enhancement Plan relating to govern-
ment-to-government transfers of defense articles, defense
services, and related technologies.
SEC. 108. WAIVER OF CERTAIN COSTS.
Notwithstanding any other provision of law, the
President may waive the requirement to impose an appro-
priate charge for a proportionate amount of any non-
recurring costs of research, development, and production
under section 21(e)(1)(B) of the Arms Export Control Act
(22 U.S.C. 2761(e)(1)(B)) for the November 1999 sale
of 5 UH–60L helicopters to the Republic of Colombia in
support of counternarcotics activities.
TITLE II—TRANSFERS OF NAVAL
VESSELS
SEC. 201. AUTHORITY TO TRANSFER NAVAL VESSELS TO
CERTAIN FOREIGN COUNTRIES.
(a) BRAZIL.—The President is authorized to transfer
to the Government of Brazil the ‘‘THOMASTON’’ class
dock landing ships ALAMO (LSD 33) and HERMITAGE
(LSD 34) and the ‘‘GARCIA’’ class frigates BRADLEY
(FF 1041), DAVIDSON (FF 1045), SAMPLE (FF
1048), and ALBERT DAVID (FF 1050). Such transfers
shall be on a grant basis under section 516 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2321j).
(b) CHILE.—The President is authorized to transfer
to the Government of the Chile the ‘‘OLIVER HAZARD
PERRY’’ class guided missile frigates WADSWORTH
(FFG 9) and ESTOCIN (FFG 15). Such transfers shall
be on a combined lease-sale basis under sections 61 and
21 of the Arms Export Control Act (22 U.S.C. 2796,
2761).
(c) GREECE.—The President is authorized to trans-
fer to the Government of Greece the ‘‘KNOX’’ class frig-
ates VREELAND (FF 1068) and TRIPPE (FF 1075).
Such transfers shall be on a grant basis under section 516
of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j).
(d) TURKEY.—The President is authorized to trans-
fer to the Government of Turkey the ‘‘OLIVER HAZARD
PERRY’’ class guided missile frigates JOHN A MOORE
(FFG 19) and FLATLEY (FFG 21). Such transfers shall
be on a combined lease-sale basis under sections 61 and
21 of the Arms Export Control Act (22 U.S.C. 2796,
2761).
SEC. 202. INAPPLICABILITY OF AGGREGATE ANNUAL LIMI-
TATION ON VALUE OF TRANSFERRED EXCESS
DEFENSE ARTICLES.
In the case of the transfer of a naval vessel author-
ized under section 201 of this Act to be transferred on
a grant basis under section 516 of the Foreign Assistance
Act of 1961 (22 U.S.C. 2321j), the value of the vessel
transferred shall not be included for purposes of sub-
section (g) of that section in the aggregate value of excess
defense articles transferred to countries under that section
in any fiscal year.
SEC. 203. COSTS OF TRANSFERS.
Any expense incurred by the United States in connec-
tion with a transfer authorized by this title shall be
charged to the recipient.