of such contributions, and the purposes for which such
contributions were used.
‘‘(3) The President is authorized to provide assist-
ance under this chapter on a reimbursable basis. Such re-
imbursements shall be deposited as an offsetting collection
to the applicable appropriation and may be used under the
same terms and conditions as funds appropriated pursu-
ant to this chapter.’’.
(c) IMPLEMENTATION OF LAW ENFORCEMENT AS-
SISTANCE.—Section 482 of such Act (22 U.S.C. 2291a)
is amended by adding at the end the following new sub-
sections:
‘‘(f) TREATMENT OF FUNDS.—Funds transferred to
and consolidated with funds appropriated pursuant to this
chapter may be made available on such terms and condi-
tions as are applicable to funds appropriated pursuant to
this chapter. Funds so transferred or consolidated shall
be apportioned directly to the bureau within the Depart-
ment of State responsible for administering this chapter.
‘‘(g) EXCESS PROPERTY.—For purposes of this chap-
ter, the Secretary of State may use the authority of section
608, without regard to the restrictions of such section, to
receive nonlethal excess property from any agency of the
United States Government for the purpose of providing
such property to a foreign government under the same
terms and conditions as funds authorized to be appro-
priated for the purposes of this chapter.’’.
SEC. 132. NOTIFICATION REQUIREMENT.
(a) IN GENERAL.—The authority of section 1003(d)
of the National Narcotics Control Leadership Act of 1988
(21 U.S.C. 1502(d)) may be exercised with respect to
funds authorized to be appropriated pursuant to the For-
eign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) and
with respect to the personnel of the Department of State
only to the extent that the appropriate congressional com-
mittees have been notified 15 days in advance in accord-
ance with the reprogramming procedures applicable under
section 634A of that Act (22 U.S.C. 2394).
(b) DEFINITION.—For purposes of this section, the
term ‘‘appropriate congressional committees’’ means the
Committee on International Relations and the Committee
on Appropriations of the House of Representatives and the
Committee on Foreign Relations and the Committee on
Appropriations of the Senate.
SEC. 133. WAIVER OF RESTRICTIONS FOR NARCOTICS-RE-
LATED ECONOMIC ASSISTANCE.
For each of the fiscal years 1996 and 1997, narcot-
ics-related assistance under part I of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2151 et seq.) may be pro-
vided notwithstanding any other provision of law that re-
stricts assistance to foreign countries (other than section
490(e) or section 502B of that Act (22 U.S.C. 2291j(e)
and 2304)) if, at least 15 days before obligating funds
for such assistance, the President notifies the appropriate
congressional committees (as defined in section 481(e) of
that Act (22 U.S.C. 2291(e))) in accordance with the pro-
cedures applicable to reprogramming notifications under
section 634A of that Act (22 U.S.C. 2394).
CHAPTER 5—OTHER PROVISIONS
SEC. 141. STANDARDIZATION OF CONGRESSIONAL REVIEW
PROCEDURES FOR ARMS TRANSFERS.
(a) THIRD
COUNTRY
TRANSFERS
UNDER
FMS
SALES.—Section 3(d)(2) of the Arms Export Control Act
(22 U.S.C. 2753(d)(2)) is amended—
(1) in subparagraph (A), by striking ‘‘, as pro-
vided for in sections 36(b)(2) and 36(b)(3) of this
Act’’;
(2) in subparagraph (B), by striking ‘‘law’’ and
inserting ‘‘joint resolution’’; and
(3) by adding at the end the following:
‘‘(C) If the President states in his certification under
subparagraph (A) or (B) that an emergency exists which
requires that consent to the proposed transfer become ef-
fective immediately in the national security interests of the
United States, thus waiving the requirements of that sub-
paragraph, the President shall set forth in the certification
a detailed justification for his determination, including a
description of the emergency circumstances which neces-
sitate immediate consent to the transfer and a discussion
of the national security interests involved.
‘‘(D)(i) Any joint resolution under this paragraph
shall be considered in the Senate in accordance with the
provisions of section 601(b) of the International Security
Assistance and Arms Export Control Act of 1976.
‘‘(ii) For the purpose of expediting the consideration
and enactment of joint resolutions under this paragraph,
a motion to proceed to the consideration of any such joint
resolution after it has been reported by the appropriate
committee shall be treated as highly privileged in the
House of Representatives.’’.
(b) THIRD COUNTRY TRANSFERS UNDER COMMER-
CIAL SALES.—Section 3(d)(3) of such Act (22 U.S.C.
2753(d)(3)) is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(3)’’;
(2) in the first sentence—
(A) by striking ‘‘at least 30 calendar
days’’; and
(B) by striking ‘‘report’’ and inserting
‘‘certification’’; and
(3) by striking the last sentence and inserting
the following: ‘‘Such certification shall be submit-
ted—
‘‘(i) at least 15 calendar days before such con-
sent is given in the case of a transfer to a country
which is a member of the North Atlantic Treaty Or-
ganization or Australia, Japan, or New Zealand; and
‘‘(ii) at least 30 calendar days before such con-
sent is given in the case of a transfer to any other
country,
unless the President states in his certification that an
emergency exists which requires that consent to the pro-
posed transfer become effective immediately in the na-
tional security interests of the United States. If the Presi-
dent states in his certification that such an emergency ex-
ists (thus waiving the requirements of clause (i) or (ii),
as the case may be, and of subparagraph (B)) the Presi-
dent shall set forth in the certification a detailed justifica-
tion for his determination, including a description of the
emergency circumstances which necessitate that consent
to the proposed transfer become effective immediately and
a discussion of the national security interests involved.
‘‘(B) Consent to a transfer subject to subparagraph
(A) shall become effective after the end of the 15-day or
30-day period specified in subparagraph (A)(i) or (ii), as
the case may be, only if the Congress does not enact, with-
in that period, a joint resolution prohibiting the proposed
transfer.
‘‘(C)(i) Any joint resolution under this paragraph
shall be considered in the Senate in accordance with the
provisions of section 601(b) of the International Security
Assistance and Arms Export Control Act of 1976.
‘‘(ii) For the purpose of expediting the consideration
and enactment of joint resolutions under this paragraph,
a motion to proceed to the consideration of any such joint
resolution after it has been reported by the appropriate
committee shall be treated as highly privileged in the
House of Representatives.’’.
(c) COMMERCIAL SALES.—Section 36(c)(2) of such
Act (22 U.S.C. 2776(c)(2)) is amended by amending sub-
paragraphs (A) and (B) to read as follows:
‘‘(A) in the case of a license for an export to
the North Atlantic Treaty Organization, any mem-
ber country of that Organization or Australia,
Japan, or New Zealand, shall not be issued until at
least 15 calendar days after the Congress receives
such certification, and shall not be issued then if the
Congress, within that 15-day period, enacts a joint
resolution prohibiting the proposed export; and
SEC. 142. STANDARDIZATION OF THIRD COUNTRY TRANS-
FERS OF DEFENSE ARTICLES.
Section 3 of the Arms Export Control Act (22 U.S.C.
2753) is amended by inserting after subsection (a) the fol-
lowing new subsection:
‘‘(b) The consent of the President under paragraph
(2) of subsection (a) or under paragraph (1) of section
505(a) of the Foreign Assistance Act of 1961 (as it relates
to subparagraph (B) of such paragraph) shall not be re-
quired for the transfer by a foreign country or inter-
national organization of defense articles sold by the United
States under this Act if—
‘‘(1) such articles constitute components incor-
porated into foreign defense articles;
‘‘(2) the recipient is the government of a mem-
ber country of the North Atlantic Treaty Organiza-
tion, the Government of Australia, the Government
of Japan, or the Government of New Zealand;
‘‘(3) the recipient is not a country designated
under section 620A of the Foreign Assistance Act of
1961;
‘‘(4) the United States-origin components are
not—
‘‘(A) significant military equipment (as de-
fined in section 47(9));
‘‘(B) defense articles for which notification
to Congress is required under section 36(b);
and
‘‘(C) identified by regulation as Missile
Technology Control Regime items; and
‘‘(5) the foreign country or international orga-
nization provides notification of the transfer of the
defense articles to the United States Government
not later than 30 days after the date of such trans-
fer.’’.
SEC. 143. INCREASED STANDARDIZATION, RATIONALIZA-
TION, AND INTEROPERABILITY OF ASSIST-
ANCE AND SALES PROGRAMS.
Paragraph (6) of section 515(a) of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2321i(a)(6)) is amended
by striking ‘‘among members of the North Atlantic Treaty
Organization and with the Armed Forces of Japan, Aus-
tralia, and New Zealand’’.
SEC. 144. DEFINITION OF SIGNIFICANT MILITARY EQUIP-
MENT.
Section 47 of the Arms Export Control Act (22
U.S.C. 2794) is amended—
(1) in paragraph (7), by striking ‘‘and’’ at the
end;
(2) in paragraph (8), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following new
paragraph:
‘‘(9) ‘significant military equipment’ means articles—
‘‘(A) for which special export controls are war-
ranted because of the capacity of such articles for
substantial military utility or capability; and
‘‘(B) identified on the United States Munitions
List.’’.
SEC. 145. ELIMINATION OF ANNUAL REPORTING REQUIRE-
MENT RELATING TO THE SPECIAL DEFENSE
ACQUISITION FUND.
(a) IN GENERAL.—Section 53 of the Arms Export
Control Act (22 U.S.C. 2795b) is hereby repealed.
(b) CONFORMING AMENDMENT.—Section 51(a)(4) of
such Act (22 U.S.C. 2795(a)(4)) is amended—
(1) by striking ‘‘(a)’’; and
(2) by striking subparagraph (B).
SEC. 146. COST OF LEASED DEFENSE ARTICLES THAT HAVE
BEEN LOST OR DESTROYED.
Section 61(a)(4) of the Arms Export Control Act (22
U.S.C. 2796(a)(4)) is amended by striking ‘‘and the re-
placement cost’’ and all that follows and inserting the fol-
lowing: ‘‘and, if the articles are lost or destroyed while
leased—
‘‘(A) in the event the United States in-
tends to replace the articles lost or destroyed,
the replacement cost (less any depreciation in
the value) of the articles; or
‘‘(B) in the event the United States does
not intend to replace the articles lost or de-
stroyed, an amount not less than the actual
value (less any depreciation in the value) speci-
fied in the lease agreement.’’.
SEC. 147. DESIGNATION OF MAJOR NON-NATO ALLIES.
(a) DESIGNATION.—
(1) NOTICE TO CONGRESS.—Chapter 2 of part
II of the Foreign Assistance Act of 1961 (22 U.S.C.
2311 et seq.), as amended by this Act, is further
amended by adding at the end the following new sec-
tion:
‘‘SEC. 517. DESIGNATION OF MAJOR NON-NATO ALLIES.
‘‘(a) NOTICE TO CONGRESS.—The President shall no-
tify the Congress in writing at least 30 days before—
‘‘(1) designating a country as a major non-
NATO ally for purposes of this Act and the Arms
Export Control Act (22 U.S.C. 2751 et seq.); or
‘‘(2) terminating such a designation.
‘‘(b) INITIAL DESIGNATIONS.—Australia, Egypt, Is-
rael, Japan, the Republic of Korea, and New Zealand shall
be deemed to have been so designated by the President
as of the effective date of this section, and the President
is not required to notify the Congress of such designation
of those countries.’’.
(2) DEFINITION.—Section 644 of such Act (22
U.S.C. 2403) is amended by adding at the end the
following:
‘‘(q) ‘Major non-NATO ally’ means a country which
is designated in accordance with section 517 as a major
non-NATO ally for purposes of this Act and the Arms Ex-
port Control Act (22 U.S.C. 2751 et seq.).’’.
(3) EXISTING DEFINITIONS.—(A) The last sen-
tence of section 21(g) of the Arms Export Control
Act (22 U.S.C. 2761(g)) is repealed.
(B) Section 65(d) of such Act (22 U.S.C.
2796d(d)) is amended—
(i) by striking ‘‘or major non-NATO’’; and
(ii) by striking out ‘‘or a’’ and all that fol-
lows through ‘‘Code’’.
(b) COOPERATIVE TRAINING AGREEMENTS.—Section
21(g) of the Arms Export Control Act (22 U.S.C.
2761(g)) is amended in the first sentence by striking
‘‘similar agreements’’ and all that follows through ‘‘other
countries’’ and inserting ‘‘similar agreements with coun-
tries’’.
SEC. 148. CERTIFICATION THRESHOLDS.
(a) INCREASE IN DOLLAR THRESHOLDS.—The Arms
Export Control Act (22 U.S.C. 2751 et seq.) is amended—
(1) in section 3(d) (22 U.S.C. 2753(d))—
(A) in paragraphs (1) and (3), by striking
‘‘$14,000,000’’ each place it appears and in-
serting ‘‘$25,000,000’’; and
(B) in paragraphs (1) and (3), by striking
‘‘$50,000,000’’ each place it appears and in-
serting ‘‘$75,000,000’’;
(2) in section 36 (22 U.S.C. 2776)—
(A) in subsections (b)(1), (b)(5)(C), and
(c)(1), by striking ‘‘$14,000,000’’ each place it
appears and inserting ‘‘$25,000,000’’;
(B) in subsections (b)(1), (b)(5)(C), and
(c)(1), by striking ‘‘$50,000,000’’ each place it
appears and inserting ‘‘$75,000,000’’; and
(C) in subsections (b)(1) and (b)(5)(C), by
striking ‘‘$200,000,000’’ each place it appears
and inserting ‘‘$300,000,000’’; and
(3) in section 63(a) (22 U.S.C. 2796b(a))—
(A) by striking ‘‘$14,000,000’’ and insert-
ing ‘‘$25,000,000’’; and
(B) by striking ‘‘$50,000,000’’ and insert-
ing ‘‘$75,000,000’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) apply with respect to certifications submit-
ted on or after the date of the enactment of this Act.
SEC. 149. DEPLETED URANIUM AMMUNITION.
Chapter 1 of part III of the Foreign Assistance Act
of 1961 (22 U.S.C. 2370 et seq.), as amended by this Act,
is further amended by adding at the end the following new
section:
‘‘SEC. 620H. DEPLETED URANIUM AMMUNITION.
‘‘(a) PROHIBITION.—Except as provided in sub-
section (b), none of the funds made available to carry out
this Act or any other Act may be made available to facili-
tate in any way the sale of M–833 antitank shells or any
comparable antitank shells containing a depleted uranium
penetrating component to any country other than—
‘‘(1) a country that is a member of the North
Atlantic Treaty Organization;
‘‘(2) a country that has been designated as a
major non-NATO ally (as defined in section 644(q));
or
‘‘(3) Taiwan.
‘‘(b) EXCEPTION.—The prohibition contained in sub-
section (a) shall not apply with respect to the use of funds
to facilitate the sale of antitank shells to a country if the
President determines that to do so is in the national secu-
rity interest of the United States.’’.
SEC. 150. END-USE MONITORING OF DEFENSE ARTICLES
AND DEFENSE SERVICES.
(a) IN GENERAL.—The Arms Export Control Act (22
U.S.C. 2751 et seq.) is amended by inserting after chapter
3 the following new chapter:
‘‘CHAPTER 3A—END-USE MONITORING OF
DEFENSE ARTICLES AND DEFENSE
SERVICES
‘‘SEC. 40A. END-USE MONITORING OF DEFENSE ARTICLES
AND DEFENSE SERVICES.
‘‘(a) ESTABLISHMENT OF MONITORING PROGRAM.—
‘‘(1) IN
GENERAL.—In order to improve ac-
countability with respect to defense articles and de-
fense services sold, leased, or exported under this
Act or the Foreign Assistance Act of 1961 (22
U.S.C. 2151 et seq.), the President shall establish a
program which provides for the end-use monitoring
of such articles and services.
‘‘(2) REQUIREMENTS OF PROGRAM.—To the ex-
tent practicable, such program—
‘‘(A) shall provide for the end-use monitor-
ing of defense articles and defense services in
accordance with the standards that apply for
identifying high-risk exports for regular end-use
verification developed under section 38(g)(7) of
this Act (commonly referred to as the ‘Blue
Lantern’ program); and
‘‘(B) shall be designed to provide reason-
able assurance that—
‘‘(i) the recipient is complying with
the requirements imposed by the United
States Government with respect to use,
transfers, and security of defense articles
and defense services; and
‘‘(ii) such articles and services are
being used for the purposes for which they
are provided.
‘‘(b) CONDUCT OF PROGRAM.—In carrying out the
program established under subsection (a), the President
shall ensure that the program—
‘‘(1) provides for the end-use verification of de-
fense articles and defense services that incorporate
sensitive technology, defense articles and defense
services that are particularly vulnerable to diversion
or other misuse, or defense articles or defense serv-
ices whose diversion or other misuse could have sig-
nificant consequences; and
‘‘(2) prevents the diversion (through reverse en-
gineering or other means) of technology incorporated
in defense articles.
‘‘(c) REPORT
TO CONGRESS.—Not later than 6
months after the date of the enactment of this section,
and annually thereafter as a part of the annual congres-
sional presentation documents submitted under section
634 of the Foreign Assistance Act of 1961, the President
shall transmit to the Congress a report describing the ac-
tions taken to implement this section, including a detailed
accounting of the costs and number of personnel associ-
ated with the monitoring program.
‘‘(d) THIRD COUNTRY TRANSFERS.—For purposes of
this section, defense articles and defense services sold,
leased, or exported under this Act or the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2151 et seq.) includes de-
fense articles and defense services that are transferred to
a third country or other third party.’’.
(b) EFFECTIVE DATE.—Section 40A of the Arms Ex-
port Control Act, as added by subsection (a), applies with
respect to defense articles and defense services provided
before or after the date of the enactment of this Act.
SEC. 151. BROKERING ACTIVITIES RELATING TO COMMER-
CIAL SALES OF DEFENSE ARTICLES AND
SERVICES.
(a) IN GENERAL.—Section 38(b)(1)(A) of the Arms
Export Control Act (22 U.S.C. 2778(b)(1)(A)) is amend-
ed—
(1) in the first sentence, by striking ‘‘As pre-
scribed in regulations’’ and inserting ‘‘(i) As pre-
scribed in regulations’’; and
(2) by adding at the end the following new
clause:
‘‘(ii)(I) As prescribed in regulations issued under this
section, every person (other than an officer or employee
of the United States Government acting in official capac-
ity) who engages in the business of brokering activities
with respect to the manufacture, export, import, or trans-
fer of any defense article or defense service designated by
the President under subsection (a)(1), or in the business
of brokering activities with respect to the manufacture, ex-
port, import, or transfer of any foreign defense article or
defense service (as defined in subclause (IV)), shall reg-
ister with the United States Government agency charged
with the administration of this section, and shall pay a
registration fee which shall be prescribed by such regula-
tions.
‘‘(II) Such brokering activities shall include the fi-
nancing, transportation, freight forwarding, or taking of
any other action that facilitates the manufacture, export,
or import of a defense article or defense service.
‘‘(III) No person may engage in the business of
brokering activities described in subclause (I) without a
license, issued in accordance with this Act, except that no
license shall be required for such activities undertaken by
or for an agency of the United States Government—
‘‘(aa) for use by an agency of the United States
Government; or
‘‘(bb) for carrying out any foreign assistance or
sales program authorized by law and subject to the
control of the President by other means.
‘‘(IV) For purposes of this clause, the term ‘foreign
defense article or defense service’ includes any non-United
States defense article or defense service of a nature de-
scribed on the United States Munitions List regardless of
whether such article or service is of United States origin
or whether such article or service contains United States
origin components.’’.
(b) EFFECTIVE DATE.—Section 38(b)(1)(A)(ii) of
the Arms Export Control Act, as added by subsection (a),
shall apply with respect to brokering activities engaged in
beginning on or after 120 days after the enactment of this
Act.
SEC. 152. RETURN AND EXCHANGES OF DEFENSE ARTICLES
PREVIOUSLY TRANSFERRED PURSUANT TO
THE ARMS EXPORT CONTROL ACT.
(a) REPAIR OF DEFENSE ARTICLES.—Section 21 of
the Arms Export Control Act (22 U.S.C. 2761) is amend-
ed by adding at the end the following new subsection:
‘‘(l) REPAIR OF DEFENSE ARTICLES.—
‘‘(1) IN GENERAL.—The President may acquire
a repairable defense article from a foreign country
or international organization if such defense arti-
cle—
‘‘(A) previously was transferred to such
country or organization under this Act;
‘‘(B) is not an end item; and
‘‘(C) will be exchanged for a defense article
of the same type that is in the stocks of the De-
partment of Defense.
‘‘(2) LIMITATION.—The President may exercise
the authority provided in paragraph (1) only to the
extent that the Department of Defense—
‘‘(A)(i) has a requirement for the defense
article being returned; and
‘‘(ii) has available sufficient funds author-
ized and appropriated for such purpose; or
‘‘(B)(i) is accepting the return of the de-
fense article for subsequent transfer to another
foreign government or international organiza-
tion pursuant to a letter of offer and acceptance
implemented in accordance with this Act; and
‘‘(ii) has available sufficient funds provided
by or on behalf of such other foreign govern-
ment or international organization pursuant to
a letter of offer and acceptance implemented in
accordance with this Act.
‘‘(3) REQUIREMENT.—(A) The foreign govern-
ment or international organization receiving a new
or repaired defense article in exchange for a repair-
able defense article pursuant to paragraph (1) shall,
upon the acceptance by the United States Govern-
ment of the repairable defense article being re-
turned, be charged the total cost associated with the
repair and replacement transaction.
‘‘(B) The total cost charged pursuant to sub-
paragraph (A) shall be the same as that charged the
United States Armed Forces for a similar repair and
replacement transaction, plus an administrative sur-
charge in accordance with subsection (e)(1)(A) of
this section.
‘‘(4) RELATIONSHIP TO CERTAIN OTHER PROVI-
SIONS OF LAW.—The authority of the President to
accept the return of a repairable defense article as
provided in subsection (a) shall not be subject to
chapter 137 of title 10, United States Code, or any
other provision of law relating to the conclusion of
contracts.’’.
(b) RETURN OF DEFENSE ARTICLES.—Section 21 of
such Act (22 U.S.C. 2761), as amended by this Act, is
further amended by adding at the end the following new
subsection:
‘‘(m) RETURN OF DEFENSE ARTICLES.—
‘‘(1) IN GENERAL.—The President may accept
the return of a defense article from a foreign coun-
try or international organization if such defense arti-
cle—
‘‘(A) previously was transferred to such
country or organization under this Act;
‘‘(B) is not significant military equipment
(as defined in section 47(9) of this Act); and
‘‘(C) is in fully functioning condition with-
out need of repair or rehabilitation.
‘‘(2) LIMITATION.—The President may exercise
the authority provided in paragraph (1) only to the
extent that the Department of Defense—
‘‘(A)(i) has a requirement for the defense
article being returned; and
‘‘(ii) has available sufficient funds author-
ized and appropriated for such purpose; or
‘‘(B)(i) is accepting the return of the de-
fense article for subsequent transfer to another
foreign government or international organiza-
tion pursuant to a letter of offer and acceptance
implemented in accordance with this Act; and
‘‘(ii) has available sufficient funds provided
by or on behalf of such other foreign govern-
ment or international organization pursuant to
a letter of offer and acceptance implemented in
accordance with this Act.
‘‘(3) CREDIT FOR TRANSACTION.—Upon acqui-
sition and acceptance by the United States Govern-
ment of a defense article under paragraph (1), the
appropriate Foreign Military Sales account of the
provider shall be credited to reflect the transaction.
‘‘(4) RELATIONSHIP TO CERTAIN OTHER PROVI-
SIONS OF LAW.—The authority of the President to
accept the return of a defense article as provided in
paragraph (1) shall not be subject to chapter 137
of title 10, United States Code, or any other provi-
sion of law relating to the conclusion of contracts.’’.
(c) REGULATIONS.—Under the direction of the Presi-
dent, the Secretary of Defense shall promulgate regula-
tions to implement subsections (l) and (m) of section 21
of the Arms Export Control Act, as added by this section.
SEC. 153. NATIONAL SECURITY INTEREST DETERMINATION
TO WAIVE REIMBURSEMENT OF DEPRECIA-
TION FOR LEASED DEFENSE ARTICLES.
(a) IN GENERAL.—Section 61(a) of the Arms Export
Control Act (22 U.S.C. 2796(a)) is amended—
(1) in the second sentence, by striking ‘‘, or to
any defense article which has passed three-quarters
of its normal service life’’; and
(2) by inserting after the second sentence the
following new sentence: ‘‘The President may waive
the requirement of paragraph (4) for reimbursement
of depreciation for any defense article which has
passed three-quarters of its normal service life if the
President determines that to do so is important to
the national security interest of the United States.’’.
(b) EFFECTIVE DATE.—The third sentence of section
61(a) of the Arms Export Control Act, as added by sub-
section (a)(2), shall apply only with respect to a defense
article leased on or after the date of the enactment of this
Act.
TITLE II—TRANSFER OF NAVAL
VESSELS TO CERTAIN FOR-
EIGN COUNTRIES
SEC. 201. AUTHORITY TO TRANSFER NAVAL VESSELS.
(a) EGYPT.—The Secretary of the Navy is authorized
to transfer to the Government of Egypt the ‘‘OLIVER
HAZARD PERRY’’ frigate GALLERY. Such transfer
shall be on a sales basis under section 21 of the Arms
Export Control Act (22 U.S.C. 2761; relating to the for-
eign military sales program).
(b) MEXICO.—The Secretary of the Navy is author-
ized to transfer to the Government of Mexico the
‘‘KNOX’’ class frigates STEIN (FF 1065) and MARVIN
SHIELDS (FF 1066). Such transfers shall be on a sales
basis under section 21 of the Arms Export Control Act
(22 U.S.C. 2761; relating to the foreign military sales pro-
gram).
(c) NEW ZEALAND.—The Secretary of the Navy is
authorized to transfer to the Government of New Zealand
the ‘‘STALWART’’ class ocean surveillance ship TENA-
CIOUS. Such transfer shall be on a sales basis under sec-
tion 21 of the Arms Export Control Act (22 U.S.C. 2761;
relating to the foreign military sales program).
(d) PORTUGAL.—The Secretary of the Navy is au-
thorized to transfer to the Government of Portugal the
‘‘STALWART’’ class ocean surveillance ship AUDA-
CIOUS. Such transfer shall be on a grant basis under sec-
tion 516 of the Foreign Assistance Act of 1961 (22 U.S.C.
2321j; relating to transfers of excess defense articles).
(e) TAIWAN.—The Secretary of the Navy is author-
ized to transfer to the Taipei Economic and Cultural Rep-
resentative Office in the United States (which is the Tai-
wan instrumentality designated pursuant to section 10(a)
of the Taiwan Relations Act) the following:
(1) The ‘‘KNOX’’ class frigates AYLWIN (FF
1081), PHARRIS (FF 1094), and VALDEZ (FF
1096). Such transfers shall be on a sales basis under
section 21 of the Arms Export Control Act (22
U.S.C. 2761; relating to the foreign military sales
program).
(2) The ‘‘NEWPORT’’ class tank landing ship
NEWPORT (LST 1179). Such transfer shall be on
a lease basis under section 61 of the Arms Export
Control Act (22 U.S.C. 2796).
(f) THAILAND.—The Secretary of the Navy is author-
ized to transfer to the Government of Thailand the
‘‘KNOX’’ class frigate OUELLET (FF 1077). Such
transfer shall be on a sales basis under section 21 of the