H. R. 1646—99
SEC. 1319. IMPLEMENTATION OF UNITED STATES POLICY.
It is the sense of Congress that implementation of debt-for-
nonproliferation programs with the Russian Federation should be
overseen by the coordinating mechanism established pursuant to
section 1334 of this Act.
SEC. 1320. CONSULTATIONS WITH CONGRESS.
The President shall consult with the appropriate congressional
committees on a periodic basis to review the implementation of
this subtitle and the Russian Federation’s eligibility for debt reduc-
tion pursuant to this subtitle.
SEC. 1321. ANNUAL REPORTS TO CONGRESS.
Not later than December 31, 2003, and not later than December
31 of each year thereafter, the President shall prepare and transmit
to Congress a report concerning actions taken to implement this
subtitle during the fiscal year preceding the fiscal year in which
the report is transmitted. The report on a fiscal year shall include—
(1) a description of the activities undertaken pursuant to
this subtitle during the fiscal year;
(2) a description of the nature and amounts of the loans
reduced pursuant to this subtitle during the fiscal year;
(3) a description of any agreement entered into under this
subtitle;
(4) a description of the progress during the fiscal year
of any projects funded pursuant to this subtitle;
(5) a summary of the results of relevant audits performed
in the fiscal year; and
(6) a certification, if appropriate, that the Russian Federa-
tion continued to meet the condition required by section 1317(a),
and an explanation of why the certification was or was not
made.
Subtitle C—Nonproliferation Assistance
Coordination
SEC. 1331. SHORT TITLE.
This subtitle may be cited as the ‘‘Nonproliferation Assistance
Coordination Act of 2002’’.
SEC. 1332. FINDINGS.
Congress finds that—
(1) United States nonproliferation efforts in the inde-
pendent states of the former Soviet Union have achieved impor-
tant results in ensuring that weapons of mass destruction,
weapons-usable material and technology, and weapons-related
knowledge remain beyond the reach of terrorists and weapons-
proliferating states;
(2) although these efforts are in the United States national
security interest, the effectiveness of these efforts has suffered
from a lack of coordination within and among United States
Government agencies;
(3) increased spending and investment by the United States
private sector on nonproliferation efforts in the independent
states of the former Soviet Union, specifically, spending and
investment by the United States private sector in job creation
H. R. 1646—100
initiatives and proposals for unemployed Russian Federation
weapons scientists and technicians, are making an important
contribution in ensuring that knowledge related to weapons
of mass destruction remains beyond the reach of terrorists
and weapons-proliferating states; and
(4) increased spending and investment by the United States
private sector on nonproliferation efforts in the independent
states of the former Soviet Union make advisable the establish-
ment of a coordinating body to ensure that United States public
and private efforts are not in conflict, and to ensure that
public spending on efforts by the independent states of the
former Soviet Union is maximized to ensure efficiency and
further United States national security interests.
SEC. 1333. DEFINITIONS.
(a) INDEPENDENT STATES
OF
THE FORMER SOVIET UNION.—
In this subtitle, the term ‘‘independent states of the former Soviet
Union’’ has the meaning given the term in section 3 of the
FREEDOM Support Act (22 U.S.C. 5801).
(b) APPROPRIATE COMMITTEES OF CONGRESS.—In this subtitle,
the term ‘‘the appropriate committees of Congress’’ means the
Committees on Foreign Relations, Armed Services, and Appropria-
tions of the Senate and the Committees on International Relations,
Armed Services, and Appropriations of the House of Representa-
tives.
SEC. 1334. ESTABLISHMENT OF COMMITTEE ON NONPROLIFERATION
ASSISTANCE.
(a) IN GENERAL.—The President shall establish a mechanism
to coordinate, with the maximum possible effectiveness and effi-
ciency, the efforts of United States Government departments and
agencies engaged in formulating policy and carrying out programs
for achieving nonproliferation and threat reduction.
(b) MEMBERSHIP.—The coordination mechanism established
pursuant to subsection (a) shall include—
(1) representatives designated by—
(A) the Secretary of State;
(B) the Secretary of Defense;
(C) the Secretary of Energy;
(D) the Secretary of Commerce;
(E) the Attorney General; and
(F) the Director of the Office of Homeland Security,
or the head of a successor department or agency; and
(2) such other executive branch officials as the President
may select.
(c) LEVEL OF REPRESENTATION.—To the maximum extent pos-
sible, each department or agency’s representative designated pursu-
ant to subsection (b)(1) shall be an official of that department
or agency who has been appointed by the President with the advice
and consent of the Senate.
(d) CHAIR.—The President shall designate an official to direct
the coordination mechanism established pursuant to subsection (a).
The official so designated may invite the head of any other depart-
ment or agency of the United States to designate a representative
of that department or agency to participate from time to time
in the activities of the Committee.
H. R. 1646—101
SEC. 1335. PURPOSES AND AUTHORITY.
(a) PURPOSES.—
(1) IN GENERAL.—The primary purpose of the coordination
mechanism established pursuant to section 1334 of this Act
should be—
(A) to exercise continuing responsibility for coordi-
nating worldwide United States nonproliferation and threat
reduction efforts to ensure that they effectively implement
United States policy; and
(B) to enhance the ability of participating departments
and agencies to anticipate growing nonproliferation areas
of concern.
(2) 
PROGRAM
MONITORING
AND
COORDINATION.—The
coordination mechanism established pursuant to section 1334
of this Act should have primary continuing responsibility within
the executive branch of the Government for—
(A) United States nonproliferation and threat reduction
efforts, and particularly such efforts in the independent
states of the former Soviet Union; and
(B) coordinating the implementation of United States
policy with respect to such efforts.
(b) AUTHORITY.—In carrying out the responsibilities described
in subsection (a), the coordination mechanism established pursuant
to section 1334 of this Act should have, at a minimum, the authority
to—
(1) establish such subcommittees and working groups as
it deems necessary;
(2) direct the preparation of analyses on issues and prob-
lems relating to coordination within and among United States
departments and agencies on nonproliferation and threat reduc-
tion efforts;
(3) direct the preparation of analyses on issues and prob-
lems relating to coordination between the United States public
and private sectors on nonproliferation and threat reduction
efforts, including coordination between public and private
spending on nonproliferation and threat reduction programs
and coordination between public spending and private invest-
ment in defense conversion activities of the independent states
of the former Soviet Union;
(4) provide guidance on arrangements that will coordinate,
deconflict, and maximize the utility of United States public
spending on nonproliferation and threat reduction programs,
and particularly such efforts in the independent states of the
former Soviet Union;
(5) encourage companies and nongovernmental organiza-
tions involved in nonproliferation efforts of the independent
states of the former Soviet Union or other countries of concern
to voluntarily report these efforts to it;
(6) direct the preparation of analyses on issues and prob-
lems relating to the coordination between the United States
and other countries with respect to nonproliferation efforts,
and particularly such efforts in the independent states of the
former Soviet Union; and
(7) consider, and make recommendations to the President
with respect to, proposals for such new legislation or regulations
relating to United States nonproliferation efforts as may be
necessary.
H. R. 1646—102
SEC. 1336. ADMINISTRATIVE SUPPORT.
All United States departments and agencies shall provide, to
the extent permitted by law, such information and assistance as
may be requested by the coordination mechanism established pursu-
ant to section 1334 of this Act, in carrying out its functions and
activities under this subtitle.
SEC. 1337. CONFIDENTIALITY OF INFORMATION.
Information which has been submitted to or received by the
coordination mechanism established pursuant to section 1334 of
this Act in confidence shall not be publicly disclosed, except to
the extent required by law, and such information shall be used
by it only for the purpose of carrying out the functions set forth
in this subtitle.
SEC. 1338. STATUTORY CONSTRUCTION.
Nothing in this subtitle—
(1) applies to the data-gathering, regulatory, or enforcement
authority of any existing United States department or agency
over nonproliferation efforts in the independent states of the
former Soviet Union, and the review of those efforts undertaken
by the coordination mechanism established pursuant to section
1334 of this Act shall not in any way supersede or prejudice
any other process provided by law; or
(2) applies to any activity that is reportable pursuant to
title V of the National Security Act of 1947 (50 U.S.C. 413
et seq.).
SEC. 1339. REPORTING AND CONSULTATION.
(a) PRESIDENTIAL REPORT.—Not later than 120 days after each
inauguration of a President, the President shall submit a report
to the Congress on his general and specific nonproliferation and
threat reduction objectives and how the efforts of executive branch
agencies will be coordinated most effectively, pursuant to section
1334 of this Act, to achieve those objectives.
(b) CONSULTATION.—The President should consult with and
brief, from time to time, the appropriate committees of Congress
regarding the efficacy of the coordination mechanism established
pursuant to section 1334 of this Act in achieving its stated objec-
tives.
Subtitle D—Iran Nuclear Proliferation
Prevention Act of 2002
SEC. 1341. SHORT TITLE.
This subtitle may be cited as the ‘‘Iran Nuclear Proliferation
Prevention Act of 2002’’.
SEC. 1342. WITHHOLDING OF VOLUNTARY CONTRIBUTIONS TO THE
INTERNATIONAL ATOMIC ENERGY AGENCY FOR PRO-
GRAMS AND PROJECTS IN IRAN.
Section 307 of the Foreign Assistance Act of 1961 (22 U.S.C.
2227) is amended by adding at the end the following:
‘‘(d)(1) Notwithstanding subsection (c), if the Secretary of State
determines that programs and projects of the International Atomic
Energy Agency in Iran are inconsistent with United States nuclear
H. R. 1646—103
nonproliferation and safety goals, will provide Iran with training
or expertise relevant to the development of nuclear weapons, or
are being used as a cover for the acquisition of sensitive nuclear
technology, the limitations of subsection (a) shall apply to such
programs and projects, and the Secretary of State shall so notify
the appropriate congressional committees (as defined in section
3 of the Foreign Relations Authorization Act, Fiscal Year 2003).
‘‘(2) A determination made by the Secretary of State under
paragraph (1) shall be effective for the 1-year period beginning
on the date of the determination.’’.
SEC. 1343. ANNUAL REVIEW BY SECRETARY OF STATE OF PROGRAMS
AND 
PROJECTS 
OF 
THE 
INTERNATIONAL 
ATOMIC
ENERGY AGENCY; UNITED STATES OPPOSITION TO CER-
TAIN PROGRAMS AND PROJECTS OF THE AGENCY.
(a) ANNUAL REVIEW.—
(1) IN GENERAL.—The Secretary shall undertake a com-
prehensive annual review of all programs and projects of the
International Atomic Energy Agency (IAEA) in the countries
described in section 307(a) of the Foreign Assistance Act of
1961 (22 U.S.C. 2227(a)) and shall determine if such programs
and projects are consistent with United States nuclear non-
proliferation and safety goals.
(2) REPORT.—Not later than one year after the date of
enactment of this Act, and on an annual basis thereafter for
five years, the Secretary shall submit to Congress a report
containing the results of the review under paragraph (1).
(b) OPPOSITION TO CERTAIN PROGRAMS AND PROJECTS OF INTER-
NATIONAL ATOMIC ENERGY AGENCY.—The Secretary shall direct
the United States representative to the International Atomic Energy
Agency to oppose programs of the Agency that are determined
by the Secretary under the review conducted under subsection
(a)(1) to be inconsistent with nuclear nonproliferation and safety
goals of the United States.
SEC. 1344. REPORTING REQUIREMENTS.
(a) IN GENERAL.—Not later than 180 days after the date of
enactment of this Act, and on an annual basis thereafter for five
years, the Secretary, in consultation with the United States rep-
resentative to the International Atomic Energy Agency, shall pre-
pare and submit to Congress a report that contains—
(1) a description of the total amount of annual assistance
to Iran from the International Atomic Energy Agency;
(2) a list of Iranian officials in leadership positions at
the Agency;
(3) the expected timeframe for the completion of the nuclear
power reactors at the Bushehr nuclear power plant;
(4) a summary of the nuclear materials and technology
transferred to Iran from the Agency in the preceding year
that could assist in the development of Iran’s nuclear weapons
program; and
(5) a description of all programs and projects of the Inter-
national Atomic Energy Agency in each country described in
section 307(a) of the Foreign Assistance Act of 1961 (22 U.S.C.
2227(a)) and any inconsistencies between the technical coopera-
tion and assistance programs and projects of the Agency and
United States nuclear nonproliferation and safety goals in those
countries.
H. R. 1646—104
(b) ADDITIONAL REQUIREMENT.—The report required to be sub-
mitted under subsection (a) shall be submitted in an unclassified
form, to the extent appropriate, but may include a classified annex.
SEC. 1345. SENSE OF CONGRESS.
It is the sense of Congress that the President should pursue
internal reforms at the International Atomic Energy Agency that
will ensure that all programs and projects funded under the Tech-
nical Cooperation and Assistance Fund of the Agency are compatible
with United States nuclear nonproliferation policy and international
nuclear nonproliferation norms.
TITLE XIV—EXPEDITING THE
MUNITIONS LICENSING PROCESS
SEC. 1401. LICENSE OFFICER STAFFING.
(a) FUNDING.—Of the amount authorized to be appropriated
by section 111(a)(1)(A), $10,000,000 is authorized to be available
for salaries and expenses of the Office of Defense Trade Controls
of the Department.
(b) ASSIGNMENT
OF
LICENSE
REVIEW
OFFICERS.—Effective
January 1, 2003, the Secretary shall assign to the Office of Defense
Trade Controls of the Department a sufficient number of license
review officers to ensure that the average weekly caseload for
each officer does not routinely exceed 40.
(c) DETAILEES.—Given the priority placed on expedited license
reviews in recent years by the Department of Defense, the Secretary
of Defense should ensure that 10 military officers are continuously
detailed to the Office of Defense Trade Controls of the Department
of State on a nonreimbursable basis.
SEC. 1402. FUNDING FOR DATABASE AUTOMATION.
Of the amount authorized to be appropriated by section
111(a)(2), $4,000,000 is authorized to be available for the Office
of Defense Trade Controls of the Department for the modernization
of information management systems.
SEC. 1403. INFORMATION MANAGEMENT PRIORITIES.
(a) OBJECTIVE.—The Secretary shall establish a secure, Inter-
net-based system for the filing and review of applications for export
of Munitions List items.
(b) ESTABLISHMENT OF AN ELECTRONIC SYSTEM.—Of the amount
made available pursuant to section 1402 of this Act, $3,000,000
is authorized to be available to fully automate the Defense Trade
Application System, and to ensure that the system—
(1) is a secure, electronic system for the filing and review
of Munitions List license applications;
(2) is accessible by United States companies through the
Internet for the purpose of filing and tracking their Munitions
List license applications; and
(3) is capable of exchanging data with—
(A) the Export Control Automated Support System of
the Department of Commerce;
(B) the Foreign Disclosure and Technology Information
System and the USXPORTS systems of the Department
of Defense;
H. R. 1646—105
(C) the Export Control System of the Central Intel-
ligence Agency; and
(D) the Proliferation Information Network System of
the Department of Energy.
(c) MUNITIONS LIST DEFINED.—In this section, the term ‘‘Muni-
tions List’’ means the United States Munitions List of defense
articles and defense services controlled under section 38 of the
Arms Export Control Act (22 U.S.C. 2778).
SEC. 1404. IMPROVEMENTS TO THE AUTOMATED EXPORT SYSTEM.
(a) CONTRIBUTION TO THE AUTOMATED EXPORT SYSTEM.—Of
the amount provided under section 1402 of this Act, $250,000
is authorized to be available for the purpose of—
(1) providing the Department with full access to the Auto-
mated Export System;
(2) ensuring that the system is modified to meet the needs
of the Department, if such modifications are consistent with
the needs of other United States Government agencies; and
(3) providing operational support.
(b) MANDATORY FILING.—The Secretary of Commerce, with the
concurrence of the Secretary of State and the Secretary of Treasury,
shall publish regulations in the Federal Register to require, upon
the effective date of those regulations, that all persons who are
required to file export information under chapter 9 of title 13,
United States Code, file such information through the Automated
Export System.
(c) REQUIREMENT FOR INFORMATION SHARING.—The Secretary
shall conclude an information-sharing arrangement with the heads
of the United States Customs Service and the Census Bureau—
(1) to allow the Department to access information on con-
trolled exports made through the United States Postal Service;
and
(2) to adjust the Automated Export System to parallel
information currently collected by the Department.
(d) SECRETARY OF TREASURY FUNCTIONS.—Section 303 of title
13, United States Code, is amended by striking ‘‘, other than by
mail,’’.
(e) FILING EXPORT INFORMATION, DELAYED FILINGS, PENALTIES
FOR FAILURE TO FILE.—Section 304 of title 13, United States Code,
is amended—
(1) in subsection (a)—
(A) in the first sentence, by striking ‘‘the penal sum
of $1,000’’ and inserting ‘‘a penal sum of $10,000’’; and
(B) in the third sentence, by striking ‘‘a penalty not
to exceed $100 for each day’s delinquency beyond the pre-
scribed period, but not more than $1,000,’’ and inserting
‘‘a penalty not to exceed $1,000 for each day’s delinquency
beyond the prescribed period, but not more than $10,000
per violation’’;
(2) by redesignating subsection (b) as subsection (c); and
(3) by inserting after subsection (a) the following:
‘‘(b) Any person, other than a person described in subsection
(a), required to submit export information, shall file such informa-
tion in accordance with any rule, regulation, or order issued pursu-
ant to this chapter. In the event any such information or reports
are not filed within such prescribed period, the Secretary of Com-
merce (and officers of the Department of Commerce specifically
H. R. 1646—106
designated by the Secretary) may impose a civil penalty not to
exceed $1,000 for each day’s delinquency beyond the prescribed
period, but not more than $10,000 per violation.’’.
(f) ADDITIONAL PENALTIES.—
(1) IN GENERAL.—Section 305 of title 13, United States
Code, is amended to read as follows:
‘‘SEC. 305. PENALTIES FOR UNLAWFUL EXPORT INFORMATION ACTIVI-
TIES.
‘‘(a) CRIMINAL PENALTIES.—
‘‘(1) FAILURE TO FILE; SUBMISSION OF FALSE OR MISLEADING
INFORMATION.—Any person who knowingly fails to file or know-
ingly submits false or misleading export information through
the Shippers Export Declaration (SED) (or any successor docu-
ment) or the Automated Export System (AES) shall be subject
to a fine not to exceed $10,000 per violation or imprisonment
for not more than 5 years, or both.
‘‘(2) FURTHERANCE OF ILLEGAL ACTIVITIES.—Any person who
knowingly reports any information on or uses the SED or
the AES to further any illegal activity shall be subject to
a fine not to exceed $10,000 per violation or imprisonment
for not more than 5 years, or both.
‘‘(3) FORFEITURE PENALTIES.—Any person who is convicted
under this subsection shall, in addition to any other penalty,
be subject to forfeiting to the United States—
‘‘(A) any of that person’s interest in, security of, claim
against, or property or contractual rights of any kind in
the goods or tangible items that were the subject of the
violation;
‘‘(B) any of that person’s interest in, security of, claim
against, or property or contractual rights of any kind in
tangible property that was used in the export or attempt
to export that was the subject of the violation; and
‘‘(C) any of that person’s property constituting, or
derived from, any proceeds obtained directly or indirectly
as a result of the violation.
‘‘(b) CIVIL PENALTIES.—The Secretary (and officers of the
Department of Commerce specifically designated by the Secretary)
may impose a civil penalty not to exceed $10,000 per violation
on any person violating the provisions of this chapter or any rule,
regulation, or order issued thereunder, except as provided in section
304. Such penalty may be in addition to any other penalty imposed
by law.
‘‘(c) CIVIL PENALTY PROCEDURE.—
‘‘(1) IN GENERAL.—Whenever a civil penalty is sought for
a violation of this section or of section 304, the charged party
is entitled to receive a formal complaint specifying the charges
and, at his or her request, to contest the charges in a hearing
before an administrative law judge. Any such hearing shall
be conducted in accordance with sections 556 and 557 of title
5, United States Code.
‘‘(2) COMMENCEMENT OF CIVIL ACTIONS.—If any person fails
to pay a civil penalty imposed under this chapter, the Secretary
may request the Attorney General to commence a civil action
in an appropriate district court of the United States to recover
the amount imposed (plus interest at currently prevailing rates
H. R. 1646—107
from the date of the final order). No such action may be com-
menced more than 5 years after the date the order imposing
the civil penalty becomes final. In such action, the validity,
amount, and appropriateness of such penalty shall not be sub-
ject to review.
‘‘(3) REMISSION
OR
MITIGATION
OF
PENALTIES.—The Sec-
retary may remit or mitigate any penalties imposed under
paragraph (1) if, in the Secretary’s opinion—
‘‘(A) the penalties were incurred without willful neg-
ligence or fraud; or
‘‘(B) other circumstances exist that justify a remission
or mitigation.
‘‘(4) APPLICABLE
LAW
FOR
DELEGATED
FUNCTIONS.—If,
pursuant to section 306, the Secretary delegates functions under
this section to another agency, the provisions of law of that
agency relating to penalty assessment, remission or mitigation
of such penalties, collection of such penalties, and limitations
of actions and compromise of claims, shall apply.
‘‘(5) DEPOSIT
OF
PAYMENTS
IN
GENERAL
FUND
OF
THE
TREASURY.—Any amount paid in satisfaction of a civil penalty
imposed under this section or section 304 shall be deposited
into the general fund of the Treasury and credited as miscella-
neous receipts.
‘‘(d) ENFORCEMENT.—
‘‘(1) BY THE SECRETARY OF COMMERCE.—The Secretary of
Commerce may designate officers or employees of the Office
of Export Enforcement to conduct investigations pursuant to
this chapter. In conducting such investigations, those officers
or employees may, to the extent necessary or appropriate to
the enforcement of this chapter, exercise such authorities as
are conferred upon them by other laws of the United States,
subject to policies and procedures approved by the Attorney
General.
‘‘(2) BY
THE
COMMISSIONER
OF
CUSTOMS.—The Commis-
sioner of Customs may designate officers or employees of the
Customs Service to enforce the provisions of this chapter, or
to conduct investigations pursuant to this chapter.
‘‘(e) REGULATIONS.—The Secretary of Commerce shall promul-
gate regulations for the implementation and enforcement of this
section.
‘‘(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 sections 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. 1405. ADJUSTMENT OF THRESHOLD AMOUNTS FOR CONGRES-
SIONAL REVIEW PURPOSES.
(a) IN GENERAL.—The Arms Export Control Act is amended—
(1) in section 3(d) (22 U.S.C. 2753(d))—
(A) in paragraphs (1) and (3)(A), by striking ‘‘The Presi-
dent may not’’ and inserting ‘‘Subject to paragraph (5),
the President may not’’; and
H. R. 1646—108
(B) by adding at the end of the following new para-
graph:
‘‘(5) In the case of a transfer to a member country of the
North Atlantic Treaty Organization (NATO) or Australia, Japan,
or New Zealand that does not authorize a new sales territory
that includes any country other than such countries, the limitations
on consent of the President set forth in paragraphs (1) and (3)(A)
shall apply only if the transfer is—
‘‘(A) a transfer of major defense equipment valued (in terms
of its original acquisition cost) at $25,000,000 or more; or
‘‘(B) a transfer of defense articles or defense services valued
(in terms of its original acquisition cost) at $100,000,000 or
more).’’;
(2) in section 36 (22 U.S.C. 2776)—
(A) in subsection (b)—
(i) in paragraph (1), by striking ‘‘(1) In the case
of’’ and inserting ‘‘(1) Subject to paragraph (6), in the
case of’’;
(ii) in paragraph (5)(C), by striking ‘‘(C) If’’ and
inserting ‘‘(C) Subject to paragraph (6), if’’; and
(iii) by adding at the end of the following new
paragraph:
‘‘(6) The limitation in paragraph (1) and the requirement in
paragraph (5)(C) shall apply in the case of a letter of offer to
sell to a member country of the North Atlantic Treaty Organization
(NATO) or Australia, Japan, or New Zealand that does not authorize
a new sales territory that includes any country other than such
countries only if the letter of offer involves—
‘‘(A) the sale of major defense equipment under this Act
for, or the enhancement or upgrade of major defense equipment
at a cost of, $25,000,000 or more, as the case may be; and
‘‘(B) the sale of defense articles or services for, or the
enhancement or upgrade of defense articles or services at a
cost of, $100,000,000 or more, as the case may be; or
‘‘(C) the sale of design and construction services for, or
the enhancement or upgrade of design and construction services
at a cost of, $300,000,000 or more, as the case may be.’’;
and
(B) in subsection (c)—
(i) in paragraph (1), by striking ‘‘(1) In the case
of’’ and inserting ‘‘(1) Subject to paragraph (5), in the
case of’’; and
(ii) by adding at the end the following new para-
graph:
‘‘(5) In the case of an application by a person (other than
with regard to a sale under section 21 or 22 of this Act) for
a license for the export to a member country of the North Atlantic
Treaty Organization (NATO) or Australia, Japan, or New Zealand
that does not authorize a new sales territory that includes any
country other than such countries, the limitations on the issuance
of the license set forth in paragraph (1) shall apply only if the
license is for export of—
‘‘(A) major defense equipment sold under a contract in
the amount of $25,000,000 or more; or
‘‘(B) defense articles or defense services sold under a con-
tract in the amount of $100,000,000 or more.’’;
(3) in section 63(a) (22 U.S.C. 2796b(a))—
H. R. 1646—109
(A) by striking ‘‘In the case of’’ and inserting ‘‘(1) Sub-
ject to paragraph (2), in the case of’’; and
(B) by adding at the end the following new paragraph:
‘‘(2) In the case of an agreement described in paragraph (1)
that is entered into with a member country of the North Atlantic
Treaty Organization (NATO) or Australia, Japan, or New Zealand,
the limitations in paragraph (1) shall apply only if the agreement
involves a lease or loan of—
‘‘(A) major defense equipment valued (in terms of its
replacement cost less any depreciation in its value) at
$25,000,000 or more; or
‘‘(B) defense articles valued (in terms of their replacement
cost less any depreciation in their value) at $100,000,000 or
more.’’; and
(4) in section 47 (22 U.S.C. 2794), as amended by section
1202(b) of this Act—
(A) by striking ‘‘and’’ at the end of paragraph (9);
(B) by striking the period at the end of paragraph
(10) and inserting ‘‘; and’’; and
(C) by adding at the end the following new paragraph:
‘‘(11) ‘Sales territory’ means a country or group of countries
to which a defense article or defense service is authorized
to be reexported.’’.
(b) LICENSES FOR EXPORTS TO INDIA AND PAKISTAN.—Section
9001(e) of the Department of Defense Appropriations Act, Fiscal
Year 2000 (Public Law 106–79) is amended by adding at the end
the following: ‘‘The application of these requirements shall be sub-
ject to the dollar amount thresholds specified in that section.’’.
SEC. 1406. 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 proposed 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 procedures 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 imposed
on that item under any other provision of law.’’.
TITLE XV—NATIONAL SECURITY
ASSISTANCE STRATEGY
SEC. 1501. BRIEFING ON THE STRATEGY.
Not later than March 31, 2003, officials of the Department
and the Department of Defense shall brief the appropriate congres-
sional committees regarding their plans and progress in formulating
and implementing a national security assistance strategy. This
briefing shall include—
(1) a description of how, and to what extent, the elements
of the strategy recommended in section 501(b) of the Security
Assistance Act of 2000 (22 U.S.C. 2305(b)) have been or will
be incorporated in security assistance plans and decisions;
H. R. 1646—110
(2) the number of out-years considered in the strategy;
(3) a description of the actions taken to include the pro-
grams listed in section 501(c) of the Security Assistance Act
of 2000 (22 U.S.C. 2305(c)), as well as similar programs of
military training or other assistance to the military or security
forces of a foreign country;
(4) a description of how a national security assistance
strategy is being implemented regarding specific countries;
(5) a description of any programmatic changes adopted
or expected as a result of adopting a strategic approach to
security assistance policymaking;
(6) a description of any obstacles encountered in formu-
lating or implementing a national security assistance strategy;
and
(7) a description of any resource or legislative needs high-
lighted by this process.
SEC. 1502. SECURITY ASSISTANCE SURVEYS.
(a) UTILIZATION.—The Secretary should utilize security assist-
ance surveys in preparation of a national security assistance
strategy pursuant to section 501 of the Security Assistance Act
of 2000 (22 U.S.C. 2305).
(b) FUNDING.—Of the amount made available for the fiscal
year 2003 under section 23 of the Arms Export Control Act (22
U.S.C. 2763), $2,000,000 is authorized to be available to the Sec-
retary to conduct security assistance surveys, or to request such
surveys, on a reimbursable basis, by the Department of Defense
or other United States Government agencies. Such surveys shall
be conducted consistent with the requirements of section 26 of
the Arms Export Control Act (22 U.S.C. 2766).
TITLE XVI—MISCELLANEOUS
PROVISIONS
SEC. 1601. NUCLEAR AND MISSILE NONPROLIFERATION IN SOUTH
ASIA.
(a) UNITED STATES POLICY.—It shall be the policy of the United
States, consistent with its obligations under the Treaty on the
Non-Proliferation of Nuclear Weapons (21 U.S.T. 483), to encourage
and work with the governments of India and Pakistan to achieve
the following objectives by September 30, 2003:
(1) Continuation of a nuclear testing moratorium.
(2) Commitment not to deploy nuclear weapons.
(3) Commitment not to deploy ballistic missiles that can
carry nuclear weapons and to restrain the ranges and types
of missiles developed or deployed.
(4) Agreement by both governments to bring their export
controls in accord with the guidelines and requirements of
the Nuclear Suppliers Group.
(5) Agreement by both governments to bring their export
controls in accord with the guidelines and requirements of
the Zangger Committee.
(6) Agreement by both governments to bring their export
controls in accord with the guidelines, requirements, and
annexes of the Missile Technology Control Regime.
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(7) Establishment of a modern, effective system to control
the export of sensitive dual-use items, technology, technical
information, and materiel that can be used in the design,
development, or production of weapons of mass destruction
and ballistic missiles.
(8) Conduct of bilateral meetings between Indian and Paki-
stani senior officials to discuss security issues and establish
confidence-building measures with respect to nuclear policies
and programs.
(b) FURTHER UNITED STATES POLICY.—It shall also be the policy
of the United States, consistent with its obligations under the
Treaty on the Nonproliferation of Nuclear Weapons (21 U.S.T. 483),
to encourage, and, where appropriate, to work with, the Govern-
ments of India and Pakistan to achieve not later than September
30, 2003, the establishment by those governments of modern, effec-
tive systems to protect and secure their nuclear devices and materiel
from unauthorized use, accidental employment, or theft. Any such
dialogue with India or Pakistan would not be represented or consid-
ered, nor would it be intended, as granting any recognition to
India or Pakistan, as appropriate, as a nuclear weapon state (as
defined in the Treaty on the Non-Proliferation of Nuclear Weapons).
(c) REPORT.—Not later than March 1, 2003, the President shall
submit to the appropriate congressional committees a report
describing United States efforts to achieve the objectives listed
in subsections (a) and (b), the progress made toward the achieve-
ment of those objectives, and the likelihood that each objective
will be achieved by September 30, 2003.
SEC. 1602. REAL-TIME PUBLIC AVAILABILITY OF RAW SEISMOLOGICAL
DATA.
The head of the Air Force Technical Applications Center shall
make available to the public, immediately upon receipt or as soon
after receipt as is practicable, all raw seismological data provided
to the United States Government by any international monitoring
organization that is directly responsible for seismological moni-
toring.
SEC. 1603. DETAILING UNITED STATES GOVERNMENTAL PERSONNEL
TO 
INTERNATIONAL 
ARMS 
CONTROL 
AND 
NON-
PROLIFERATION ORGANIZATIONS.
(a) IN GENERAL.—The Secretary, in consultation with the Secre-
taries of Defense and Energy and the heads of other relevant
United States departments and agencies, as appropriate, should
develop measures to improve the process by which United States
Government personnel may be detailed to international arms control
and nonproliferation organizations without adversely affecting the
pay or career advancement of such personnel.
(b) REPORT REQUIRED.—Not later than May 1, 2003, the Sec-
retary shall submit a report to the Committee on Foreign Relations
of the Senate and the Committee on International Relations of
the House of Representatives setting forth the measures taken
under subsection (a).
SEC. 1604. DIPLOMATIC PRESENCE OVERSEAS.
(a) PURPOSE.—The purpose of this section is to—
(1) elevate the stature given United States diplomatic ini-
tiatives relating to nonproliferation and political-military
issues; and
H. R. 1646—112
(2) develop a group of highly specialized, technical experts
with country expertise capable of administering the non-
proliferation and political-military affairs functions of the
Department.
(b) AUTHORITY.—To carry out the purposes of subsection (a),
the Secretary is authorized to establish the position of Counselor
for Nonproliferation and Political Military Affairs in United States
diplomatic missions overseas, to be filled by individuals who are
career Civil Service officers or Foreign Service officers committed
to follow-on assignments in the Nonproliferation Bureau or the
Political Military Affairs Bureau of the Department.
(c) TRAINING.—After being selected to serve as Counselor, any
person so selected shall spend not less than 10 months in language
training courses at the Foreign Service Institute, or in technical
courses administered by the Department of Defense, the Depart-
ment of Energy, or other appropriate departments and agencies
of the United States, except that such requirement for training
may be waived by the Secretary.
SEC. 1605. COMPLIANCE WITH THE CHEMICAL WEAPONS CONVENTION.
(a) FINDINGS.—Congress makes the following findings:
(1) On April 24, 1997, the Senate provided its advice and
consent to ratification of the Chemical Weapons Convention
subject to the condition, among others, that the President certify
that no sample collected in the United States pursuant to
the Convention will be transferred for analysis to any laboratory
outside the territory of the United States.
(2) Congress enacted the same condition into law as section
304(f)(1) of the Chemical Weapons Convention Implementation
Act of 1998 (22 U.S.C. 6724(f)(1)).
(3) Part II, paragraph 57, of the Verification Annex of
the Convention requires that all samples requiring off-site anal-
ysis under the Convention shall be analyzed by at least two
laboratories that have been designated as capable of conducting
such testing by the OPCW.
(4) The only United States laboratory currently designated
by the OPCW is the United States Army Edgewood Forensic
Science Laboratory.
(5) In order to comply with the Chemical Weapons Conven-
tion, the certification submitted pursuant to condition (18) of
the resolution of ratification of the Chemical Weapons Conven-
tion, and the requirements of section 304(f)(1) of the Chemical
Weapons Convention Implementation Act of 1998 (22 U.S.C.
6724(f)(1)), the United States must possess, at a minimum,
a second OPCW-designated laboratory.
(6) The possession of a second OPCW-designated laboratory
is necessary in view of the potential for a challenge inspection
to be initiated against the United States by a foreign nation.
(7) The possession of a third OPCW-designated laboratory
would enable the OPCW to implement its normal sample anal-
ysis procedures, which randomly assign real and manufactured
samples so that no laboratory knows the origin of a given
sample.
(8) To qualify as a designated laboratory, a laboratory
must be certified under ISO Guide 25 or a higher standard
and complete three proficiency tests. The laboratory must have
the full capability to handle substances listed on Schedule