HR 5916 RFS 
(1) Congress has previously expressed its strong 
concerns in House Resolution 57 of February 2, 
2005, and Senate Resolution 91 of March 17, 2005, 
with the transfer of armaments and related tech-
nology to the People’s Republic of China by member 
states of the European Union, which increased 
eightfold from 2001 to 2003, and with plans to ter-
minate in the near future the arms embargo they 
imposed in 1989 following the Tiananmen Square 
massacre. 
(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 Europe, and growing concern among countries in 
the regions and the general public on both sides of 
the Atlantic, 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 em-
bargo, was also welcomed by the Congress as a reas-
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HR 5916 RFS 
surance that its European friends and allies under-
stood the gravity 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 under-
standing will emerge of the consequences of Euro-
pean assistance to the military buildup of the Peo-
ple’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 safety of United States Armed 
Forces whose presence in the region has been a deci-
sive factor in ensuring peace and prosperity since 
the end of World War II. 
(5) A more intensive dialogue with Europe on 
this matter will clarify for United States’ friends 
and allies in Europe how their ‘‘non-lethal’’ arms 
transfers improve the force projection of the People’s 
Republic of China, are far from benign, and enhance 
the prospects for the threat or use of force in resolv-
ing the status of Taiwan. 
(6) This dialogue may result in an important 
new consensus between the United States and its 
European partners on the need for coordinated poli-
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HR 5916 RFS 
cies that encourage the development of democracy in 
the People’s Republic of China and which discour-
age, not assist, China’s unjustified military buildup 
and pursuit of weapons that threaten its neighbors. 
(7) However, the statement by the President of 
France in Beijing in November 2007 that the Euro-
pean Union arms embargo should be lifted is trou-
bling, especially since France will assume the six- 
month presidency of the European Union in July 
2008. 
(8) There continues to be wide-spread concerns 
regarding the lack of any significant progress by the 
Government of the People’s Republic of China in re-
specting the civil and political rights of the Chinese 
people. 
(b) STATEMENT OF POLICY.—It shall be the policy 
of the United States Government to oppose any diminu-
tion or termination of the arms embargo that was estab-
lished by the Declaration of the European Council of June 
26, 1989, and to take whatever diplomatic and other 
measures that are appropriate to convince the Member 
States of the European Union, individually and collec-
tively, to continue to observe this embargo in principle and 
in practice. Appropriate measures should include prohibi-
tions on entering into defense procurement contracts or 
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defense-related research and development arrangements 
with European Union Member States that do not observe 
such an embargo in practice. 
(c) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, and every six months there-
after until December 31, 2010, the President shall trans-
mit to the Committee on Foreign Affairs and Committee 
on Armed Services of the House of Representatives and 
the Committee on Foreign Relations and the Committee 
on Armed Services of the Senate a report on all efforts 
and activities of the United States Government to ensure 
the success of the policy declared in subsection (b). 
SEC. 403. REIMBURSEMENT OF SALARIES OF MEMBERS OF 
THE RESERVE COMPONENTS IN SUPPORT OF 
SECURITY COOPERATION MISSIONS. 
Section 632(d) of the Foreign Assistance Act of 1961 
(22 U.S.C. 2392(d)) is amended— 
(1) by striking ‘‘(d) Except as otherwise pro-
vided’’ and inserting ‘‘(d)(1) Except as otherwise 
provided’’; and 
(2) by adding at the end the following: 
‘‘(2) Notwithstanding provisions concerning the ex-
clusion of the costs of salaries of members of the Armed 
Forces in section 503(a) of this Act and paragraph (1) 
of this subsection, the full cost of salaries of members of 
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the reserve components of the Armed Forces (specified in 
section 10101 of title 10, United States Code) may, during 
each of fiscal years 2009 and 2010, be included in calcu-
lating pricing or value for reimbursement charged under 
section 503(a) of this Act and paragraph (1) of this sub-
section, respectively.’’. 
SEC. 404. FOREIGN MILITARY SALES STOCKPILE FUND. 
(a) IN GENERAL.—Subsection (a) of section 51 of the 
Arms Export Control Act (22 U.S.C. 2795) is amended— 
(1) in paragraph (1), by striking ‘‘Special De-
fense Acquisition Fund’’ and inserting ‘‘Foreign 
Military Sales Stockpile Fund’’; and 
(2) in paragraph (4), by inserting ‘‘building the 
capacity of recipient countries and’’ before ‘‘nar-
cotics control purposes’’. 
(b) CONTENTS OF FUND.—Subsection (b) of such 
section is amended— 
(1) in paragraph (2), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (3), by inserting ‘‘and’’ at the 
end; and 
(3) by inserting after paragraph (3) the fol-
lowing: 
‘‘(4) collections from leases made pursuant to 
section 61 of this Act,’’. 
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(c) CONFORMING AMENDMENTS.—(1) The heading 
of such section is amended by striking ‘‘SPECIAL DE-
FENSE ACQUISITION FUND’’ and inserting ‘‘FOREIGN 
MILITARY SALES STOCKPILE FUND’’. 
(2) The heading of chapter 5 of the Arms Export 
Control Act is amended by striking ‘‘SPECIAL DE-
FENSE ACQUISITION FUND’’ and inserting 
‘‘FOREIGN MILITARY SALES STOCKPILE 
FUND’’. 
SEC. 405. SENSE OF CONGRESS. 
It is the sense of Congress that the United States 
should not provide security assistance or arms exports to 
nations contributing to massive, widespread, and system-
atic violations of human rights or acts of genocide, par-
ticularly with respect to Darfur, Sudan. 
TITLE V—AUTHORITY TO 
TRANSFER NAVAL VESSELS 
SEC. 501. AUTHORITY TO TRANSFER NAVAL VESSELS TO 
CERTAIN FOREIGN RECIPIENTS. 
(a) TRANSFERS BY GRANT.—The President is au-
thorized to transfer vessels to foreign countries on a grant 
basis under section 516 of the Foreign Assistance Act of 
1961 (22 U.S.C. 2321j), as follows: 
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(1) PAKISTAN.—To the Government of Paki-
stan, the OLIVER HAZARD PERRY class guided 
missile frigate MCINERNEY (FFG–8). 
(2) GREECE.—To the Government of Greece, 
the OSPREY class minehunter coastal ships OS-
PREY (MHC–51) and ROBIN (MHC–54). 
(3) CHILE.—To the Government of Chile, the 
KAISER class oiler ANDREW J. HIGGINS (AO– 
190). 
(4) PERU.—To the Government of Peru, the 
NEWPORT class amphibious tank landing ships 
FRESNO (LST–1182) and RACINE (LST–1191). 
(b) GRANTS NOT COUNTED IN ANNUAL TOTAL OF 
TRANSFERRED EXCESS DEFENSE ARTICLES.—The value 
of a vessel transferred to a recipient on a grant basis pur-
suant to authority provided by subsection (a) shall not be 
counted against the aggregate value of excess defense arti-
cles transferred in any fiscal year under section 516(g) 
of the Foreign Assistance Act of 1961. 
(c) COSTS OF TRANSFERS.—Any expense incurred by 
the United States in connection with a transfer authorized 
by this section shall be charged to the recipient. 
(d) REPAIR
AND
REFURBISHMENT
IN
UNITED 
STATES SHIPYARDS.—To the maximum extent prac-
ticable, the President shall require, as a condition of the 
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transfer of a vessel under this section, that the recipient 
to which the vessel is transferred have such repair or re-
furbishment of the vessel as is needed before the vessel 
joins the naval forces of the recipient performed at a ship-
yard located in the United States, including a United 
States Navy shipyard. 
(e) EXPIRATION OF AUTHORITY.—The authority to 
transfer a vessel under this section shall expire at the end 
of the 2-year period beginning on the date of the enact-
ment of this Act. 
Passed the House of Representatives May 15, 2008. 
Attest: 
LORRAINE C. MILLER, 
Clerk. 
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