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such individuals regarding the means of nonviolent 
force and the methods of nonviolent action. 
(2) The translation into languages spoken in 
such countries of relevant programming and existing 
books, videos, and other publications relating to the 
subjects specified in paragraph (1). 
(3) The promotion of political pluralism and the 
rule of law within such countries, including the pro-
motion of nongovernmental organizations and move-
ments that promote democratic principles, practices, 
and values. 
(4) The creation of programs for student 
groups to work with citizens of such countries who 
are committed to democratic reforms and to the pro-
motion of a transition to democracy. 
(5) The creation of training programs for citi-
zens of such countries concerning international legal 
obligations to support democracy and human rights, 
including religious freedom. 
(6) Support for nongovernmental organizations 
which have experience with the Community of De-
mocracies to assist the Community of Democracies 
and its Convening Group. 
(b) FREEDOM INVESTMENT ACT OF 2002.—Section 
664(b) of the Freedom Investment Act of 2002 (subtitle
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E of title VI of Public Law 107–228; relating to the pur-
poses of the Human Rights and Democracy Fund) is 
amended— 
(1) in paragraph (4), by striking ‘‘and’’ at the 
end; 
(2) by redesignating paragraph (5) as para-
graph (6); 
(3) by inserting after paragraph (4) the fol-
lowing new paragraph: 
‘‘(5) to support the study of democracy abroad, 
including support for debates and discussions at aca-
demic institutions, regarding the values and benefits 
of democracy; and’’; and 
(4) in paragraph (6), as redesignated by para-
graph (2) of this subsection, by striking ‘‘(4)’’ and 
inserting ‘‘(5)’’. 
(c) ADMINISTRATIVE AUTHORITIES.—Assistance pro-
vided through the Human Rights and Democracy Fund 
may be provided to eligible entities and eligible individuals 
in foreign countries notwithstanding any provision of law 
that prohibits assistance to a foreign country or to a gov-
ernment of a foreign country. 
(d) ANNUAL REPORT
ON
THE STATUS
OF
THE 
HUMAN RIGHTS AND DEMOCRACY FUND.—Not later than 
60 days after the conclusion of each fiscal year, the Assist-
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ant Secretary of State for Democracy, Human Rights, and 
Labor shall submit to the appropriate congressional com-
mittees an annual report on the status of the Human 
Rights and Democracy Fund. Each such annual report 
shall contain the following information: 
(1) An identification of each eligible entity and 
eligible individual who received assistance during the 
previous fiscal year under subsection (b) and a sum-
mary of the activities of each such recipient. 
(2) An account of projects funded and outside 
contributions received during the previous fiscal 
year. 
(3) A balance sheet of income and outlays cur-
rent as of the conclusion of the fiscal year to which 
such report is relevant. 
(e) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—Of the funds available to 
carry out chapter 4 of Part II of the Foreign Assist-
ance Act of 1961 for each of fiscal years 2006 and 
2007, there are authorized to be appropriated to the 
Human Rights and Democracy Fund to carry out 
the purposes of this section $50,000,000 for fiscal 
year 2006 and $60,000,000 for fiscal year 2007. 
Amounts appropriated under this section shall re-
main available until expended.
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(2) ADMINISTRATIVE
EXPENSES.—Not more 
than five percent of amounts appropriated to the 
Human Rights and Democracy Fund for each fiscal 
year may be applied toward administrative expenses 
associated with carrying out this section. 
(3) CONTRIBUTIONS.—The Secretary may ac-
cept contributions to the Human Rights and Democ-
racy Fund from the governments of other demo-
cratic countries, private foundations, private citizens, 
and other nongovernmental sources. 
Subtitle D—Presidential Actions 
SEC. 651. INVESTIGATION OF VIOLATIONS OF INTER-
NATIONAL HUMANITARIAN LAW. 
(a) IN GENERAL.—The President, with the assist-
ance of the Secretary of State, the Under Secretary of 
State for Democracy and Global Affairs, and the Ambas-
sador-at-Large for War Crimes Issues, shall collect infor-
mation regarding incidents that may constitute crimes 
against humanity, genocide, slavery, or other violations of 
international humanitarian law by leaders or other govern-
ment officials of foreign countries categorized as nondemo-
cratic or as democratic transition countries in the most 
recent Annual Report on Democracy under section 612(a). 
(b) ACCOUNTABILITY.—The President shall consider 
what actions can be taken to ensure that such leaders or
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other government officials of foreign countries who are 
identified in accordance with subsection (a) as responsible 
for crimes against humanity, genocide, slavery, or other 
violations of international humanitarian law are brought 
to account for such crimes in an appropriately constituted 
tribunal. 
SEC. 652. PRESIDENTIAL COMMUNICATIONS. 
(a) FINDING.—Congress finds that direct commu-
nications from the President to citizens of countries that 
are categorized as nondemocratic in the most recent An-
nual Report on Democracy would be extremely beneficial 
to demonstrate that the United States supports such citi-
zens and the efforts and actions of such citizens to pro-
mote and achieve transition to democracy in such coun-
tries. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) from time to time as the President shall de-
termine appropriate, the President should broadcast 
a message to the citizens of countries categorized as 
nondemocratic in the most recent Annual Report on 
Democracy under section 612(a) expressing the sup-
port of the United States for such citizens, dis-
cussing democratic principles, practices, and values, 
and political, social, and economic freedoms, and
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condemning violations of internationally recognized 
human rights (as such term is described in section 
116(a) of the Foreign Assistance Act of 1961 (22 
U.S.C. 2151n(a))), violations of religious freedom, 
including particularly severe violations of religious 
freedom (as such terms are defined in paragraphs 
(11) and (13) of section 3 of the International Reli-
gious Freedom Act of 1998 (22 U.S.C. 6402)), polit-
ical repression, and government-tolerated or con-
doned trafficking in persons that occur in such coun-
try; and 
(2) the President should encourage leaders of 
other democratic countries to make similar broad-
casts. 
TITLE VII—STRATEGIC EXPORT 
CONTROL AND SECURITY AS-
SISTANCE ACT OF 2005 
Subtitle A—General Provisions 
SEC. 701. SHORT TITLE. 
This title may be cited as the ‘‘Strategic Export Con-
trol and Security Assistance Act of 2005’’. 
SEC. 702. DEFINITIONS. 
In this title:
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(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the Committee on International Rela-
tions and the Committee on Armed Services of 
the House of Representatives; and 
(B) the Committee on Foreign Relations 
and the Committee on Armed Services of the 
Senate. 
(2) DEFENSE ARTICLES AND DEFENSE SERV-
ICES.—The term ‘‘defense articles and defense serv-
ices’’ has the meaning given the term in section 
47(7) of the Arms Export Control Act (22 U.S.C. 
2794 note). 
(3) DUAL USE.—The term ‘‘dual use’’ means, 
with respect to goods or technology, those goods or 
technology that are specifically designed or devel-
oped for civil purposes but which also may be used 
or deployed in a military or proliferation mode. Such 
term does not include purely commercial items. 
(4) EXPORT.—The term ‘‘export’’ has the 
meaning given that term in section 120.17 of the 
International Traffic in Arms Regulations, and in-
cludes re-exports, transfers, and re-transfers by any 
means.
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(5) EXPORT ADMINISTRATION REGULATIONS.— 
The term ‘‘Export Administration Regulations’’ 
means those regulations contained in sections 730 
through 774 of title 15, Code of Federal Regulations 
(or successor regulations). 
(6) FOREIGN
GOVERNMENT.—The term ‘‘for-
eign government’’ has the meaning given the term in 
section 38(g)(9)(B) of the Arms Export Control Act 
(22 U.S.C. 2778(g)(9)(B)). 
(7) FOREIGN PERSON.—The term ‘‘foreign per-
son’’ has the meaning given the term in section 
38(g)(9)(C) of the Arms Export Control Act (22 
U.S.C. 2778(g)(9)(C)). 
(8) GOOD.—The term ‘‘good’’ has the meaning 
given the term in section 16(3) of the Export Ad-
ministration Act of 1979 (50 U.S.C. App. 2415(3)). 
(9) INTERNATIONAL TRAFFIC IN ARMS REGULA-
TIONS.—The term ‘‘International Traffic in Arms 
Regulations’’ means those regulations contained in 
sections 120 through 130 of title 22, Code of Fed-
eral Regulations (or successor regulations). 
(10) ITEM.—The term ‘‘item’’ means any good 
or technology, defense article or defense service sub-
ject to the export jurisdiction of the United States 
under law or regulation.
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(11) LICENSE.—The term ‘‘license’’ means an 
official written document of the United States Gov-
ernment issued pursuant to the Export Administra-
tion Regulations or the International Traffic in 
Arms Regulations, as the case may be, authorizing 
a specific export. 
(12) 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)). 
(13) MISSILE TECHNOLOGY CONTROL REGIME 
ANNEX; MTCR
ANNEX.—The term ‘‘Missile Tech-
nology 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)). 
(14) PERSON.—The term ‘‘person’’ has the 
meaning given the term in section 38(g)(9)(E) of 
the 
Arms 
Export 
Control 
Act 
(22 
U.S.C. 
2778(g)(9)(E)). 
(15) STRATEGIC EXPORT CONTROL.—The term 
‘‘strategic export control’’ means the control of items 
subject to the export jurisdiction of the United 
States pursuant to the International Traffic in Arms
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Regulations or the Export Administration Regula-
tions. 
(16) TECHNOLOGY.—The term ‘‘technology’’ 
has the meaning given the term in section 16(4) of 
the Export Administration Act of 1979 (50 U.S.C. 
App. 2415(4)). 
(17) UNITED
STATES
MUNITIONS
LIST.—The 
term ‘‘United States Munitions List’’ means the list 
referred to in section 38(a)(1) of the Arms Export 
Control Act (22 U.S.C. 2778(a)(1)). 
SEC. 703. DECLARATION OF POLICY. 
Congress declares that, at a time of evolving threats 
and changing relationships with other countries, United 
States strategic export controls are in urgent need of a 
comprehensive review in order to assure such controls are 
achieving their intended purposes of protecting the na-
tional security interests of the United States in the Global 
War on Terrorism and of promoting the foreign policy 
purposes of the United States, in particular by assuring 
that— 
(1) export license procedures are properly de-
signed to prioritize readily which exports may be ap-
proved quickly for United States friends and allies 
and which require greater scrutiny in order to safe-
guard national interests;
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(2) technology related to the military superi-
ority of the United States Armed Forces is safe-
guarded during and after export to a high level of 
confidence; and 
(3) 
overlapping 
and 
duplicative 
functions 
among the responsible departments and agencies of 
the Government of the United States are consoli-
dated and integrated wherever appropriate in order 
to enhance efficiency, information sharing, and the 
consistent execution of United States policy. 
Subtitle B—Revising and Strength-
ening Strategic Export Control 
Policies 
SEC. 711. AMENDMENTS TO THE STATE DEPARTMENT 
BASIC AUTHORITIES ACT OF 1956. 
(a) UNDER SECRETARY FOR ARMS CONTROL AND 
INTERNATIONAL SECURITY.—Section 1(b)(2) of the State 
Department Basic Authorities Act of 1956 (22 U.S.C. 
2651a(b)(2)) is amended— 
(1) in the first sentence, by striking ‘‘There’’ 
and inserting the following: 
‘‘(A) IN GENERAL.—There’’; and 
(2) by adding at the end the following new sub-
paragraph:
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‘‘(B) DUTIES.—The Under Secretary for 
Arms Control and International Security shall 
be responsible for— 
‘‘(i) coordinating and executing a 
United States strategy for strengthening 
multilateral export controls; 
‘‘(ii) coordinating the activities of all 
bureaus and offices of the Department of 
State that have responsibility for export 
control policy, licensing, or assistance; and 
‘‘(iii) serving as the chairperson of the 
Strategic Export Control Board established 
under section 712 of the Strategic Export 
Control and Security Assistance Act of 
2005.’’. 
(b) DEPUTY UNDER SECRETARY
FOR STRATEGIC 
EXPORT CONTROL.—Section 1(b)(2) of the State Depart-
ment Basic Authorities Act of 1956 (22 U.S.C. 
2651a(b)(2)), as amended by subsection (a), is further 
amended by adding at the end the following new subpara-
graph: 
‘‘(C) DEPUTY
UNDER
SECRETARY
FOR 
STRATEGIC EXPORT CONTROL.—There shall be 
in the Department of State a Deputy Under 
Secretary for Strategic Export Control who
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shall have primary responsibility to assist the 
Under Secretary for Arms Control and Inter-
national Security in carrying out the responsi-
bility of the Under Secretary described in sub-
paragraph (B)(iii).’’. 
(c) DEFENSE
TRADE
CONTROLS
REGISTRATION 
FEES.—Section 45 of the State Department Basic Au-
thorities Act of 1956 (22 U.S.C. 2717) is amended— 
(1) in paragraph (2), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (3), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(4) functions of the Strategic Export Control 
Board established under section 712 of the Strategic 
Export Control and Security Assistance Act of 
2005.’’. 
SEC. 712. STRATEGIC EXPORT CONTROL BOARD. 
(a) ESTABLISHMENT.—There is established a Stra-
tegic Export Control Board (in this section referred to as 
the ‘‘Board’’). The Board shall consist of representatives 
from the Department of Commerce, the Department of 
Defense, the Department of Homeland Security, the De-
partment of Justice, the National Security Council, the
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intelligence community (as defined in section 3(4) of the 
National Security Act of 1947 (50 U.S.C. 401a(4)), and 
other appropriate departments and agencies of the Gov-
ernment of the United States, and the Under Secretary 
for Arms Control and International Security of the De-
partment of State. The Under Secretary for Arms Control 
and International Security shall serve as the chairperson 
of the Board. 
(b) FUNCTIONS.—The Board shall— 
(1) conduct a comprehensive review of United 
States strategic export controls in the context of the 
Global War on Terrorism in order to strengthen con-
trols by regulation, where appropriate, and to formu-
late legislative proposals for any new authorities that 
are needed for counter-terrorism purposes; 
(2) develop a strategy for ensuring a high level 
of confidence in the export control of any items im-
portant to the current and future military superi-
ority of the United States Armed Forces, including 
in particular the security of sensitive software 
through the use of tamper-resistant security soft-
ware and other emerging technologies; 
(3) design standards and best practices for in-
formation assurance and protection for the robust 
information technology systems, such as virtual pri-
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vate networks, already utilized by United States de-
fense firms in the conduct of their export control 
regulated activities with foreign partners, which can 
also gain the support of United States friends and 
allies; 
(4) formulate, with the assistance of the United 
States defense industry and the support of United 
States friends and allies, an automated international 
delivery confirmation system for commercial ship-
ments of lethal and other high risk items in order 
to afford improved protection against attempts to 
disrupt international supply chains or to divert sen-
sitive items to gray arms markets; 
(5) prepare recommendations for the President 
and Congress, as appropriate, with respect to— 
(A) the consolidation of overlapping or du-
plicative functions among the responsible de-
partments and agencies of the Government of 
the United States in such areas as enforcement, 
end use monitoring, export licensing, watch 
lists, and related areas; 
(B) the cost-savings associated with inte-
gration of export licensing staffs and the pro-
mulgation of integrated export control regula-
tions; and
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(C) the resultant rationalization of budg-
etary resources to be authorized among the re-
sponsible departments and agencies of the 
United States Government; 
(6) establish the necessary departmental and 
inter-agency controls that will ensure legitimate ex-
ports by United States business organizations can be 
readily identified and generally approved within 10 
days, but no later than 30 days in more complex 
cases, except in unusual circumstances, such as 
those requiring congressional notification or foreign 
government assurances; 
(7) review and revise, where appropriate, plans 
for modernizing information technology systems of 
the relevant departments and agencies of the Gov-
ernment of the United States involved in export li-
censing, export enforcement, and screening of in-
volved private parties to ensure efficient, reliable, 
and secure intra-governmental networks, at the ear-
liest practicable date among the relevant depart-
ments and agencies and United States exporters; 
and 
(8) develop a strategy for strengthening the 
multilateral control regimes or developing new re-
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gimes, as appropriate, to augment or supplement ex-
isting international arrangements. 
(c) REPORT BY COMPTROLLER GENERAL.—Not later 
than one year, two years, and three years after the date 
of the enactment of this Act, the Comptroller General of 
the United States shall submit to the appropriate congres-
sional committees a report that contains— 
(1) an independent assessment of progress 
made by the Board in carrying out its functions 
under paragraphs (1) through (8) of subsection (b); 
(2) the budgetary impact of each of the rec-
ommendations prepared under subsection (b)(5) and 
any additional recommendations prepared by the 
Comptroller General and the budgetary impact of 
such recommendations; and 
(3) a certification as to whether the Comp-
troller General had access to sufficient information 
to enable the Comptroller General to make informed 
judgments on the matters covered by the report. 
SEC. 713. AUTHORIZATION FOR ADDITIONAL LICENSE AND 
COMPLIANCE OFFICERS. 
(a) FUNDING.—Of the amounts authorized to be ap-
propriated under section 101 of this Act, up to 
$13,000,000 shall be available for each of the fiscal years 
2006 and 2007 for salaries and expenses related to the
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assignment of additional full time license and compliance 
officers in the Directorate of Defense Trade Controls of 
the Department of State. 
(b) NOTIFICATION.—None of the funds authorized 
under subsection (a) may be made available until 15 days 
after the date on which the Secretary of State submits 
a written report to the congressional committees specified 
in section 634A(a) of the Foreign Assistance Act of 1961 
(22 U.S.C. 2394–1(a)) in accordance with the procedures 
applicable to reprogramming notifications under such sec-
tion, which sets forth the plans and timetable of the De-
partment of State for measurable improvements in the 
quality and timeliness of the service it provides in support 
of United States Armed Forces abroad and routine ex-
ports by United States business organizations, as well as 
for the elaboration of enhanced compliance measures ap-
propriate to the heightened security environment for arms 
exports during the Global War on Terrorism. 
Subtitle C—Procedures Relating to 
Export Licenses 
SEC. 721. TRANSPARENCY OF JURISDICTIONAL DETER-
MINATIONS. 
(a) DECLARATION OF POLICY.—Congress declares 
that the complete confidentiality surrounding several thou-
sand commodity classification determinations made each
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year by the Department of Commerce pursuant to the Ex-
port Administration Regulations and several hundred 
commodity jurisdiction determinations made each year by 
the Department of State pursuant to the International 
Traffic in Arms Regulations is not necessary to protect 
legitimate proprietary interests of persons or their prices 
and customers, is not in the best interests of the security 
and foreign policy interests of the United States, is incon-
sistent with the need to ensure a level playing field for 
United States exporters, and detracts from United States 
efforts to promote greater transparency and responsibility 
by other countries in their export control systems. 
(b) PUBLICATION REQUIREMENT.—The Secretary of 
Commerce and the Secretary of State shall— 
(1) upon making a commodity classification de-
termination or a commodity jurisdiction classifica-
tion, as the case may be, referred to in subsection 
(a) in response to a request by a private person, 
publish in the Federal Register, not later than 30 
days after the date of the determination— 
(A) a description of the item, including 
performance levels or other technical character-
istics where appropriate; 
(B) an explanation of whether the item is 
controlled under the International Traffic in
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Arms Regulations or the Export Administration 
Regulations; and 
(C) the United States Munitions List des-
ignation or export control classification number 
under which the item has been designated or 
classified, as the case may be, 
except that the name of the name of the person, the 
person’s business organization, customers, or prices 
are not required to be published; and 
(2) maintain on their respective Internet 
websites an archive, that is accessible to the general 
public and other departments and agencies of the 
United States, of the determinations published in 
the Federal Register under paragraph (1). 
(c) REPORT.—Not later than 120 days after the date 
of the enactment of this Act, the Secretary of State and 
the Secretary of Commerce shall submit to the appropriate 
congressional committees a joint report that contains a de-
scription of the plans to implement the requirements of 
this section. 
(d) REQUIREMENT.—Notwithstanding any other pro-
vision of law, beginning 180 days after the date of the 
enactment of this Act, the Secretary of Commerce may 
make a commodity classification determination referred to 
in subsection (a), and the Secretary of State may make
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a commodity jurisdiction determination referred to in sub-
section (a), in response to a request by a private person 
only in accordance with the requirements of subsection 
(b). 
SEC. 722. CERTIFICATIONS RELATING TO EXPORT OF CER-
TAIN 
DEFENSE 
ARTICLES 
AND 
DEFENSE 
SERVICES. 
(a) REPORTS ON COMMERCIAL AND GOVERNMENTAL 
MILITARY EXPORTS; CONGRESSIONAL ACTION.—Section 
36(c) of the Arms Export Control Act (22 U.S.C. 2776(c)) 
is amended— 
(1) in the first sentence of paragraph (1), by 
inserting after ‘‘$1,000,000 or more’’ the following: 
‘‘, or, notwithstanding section 27(g) of this Act, for 
any special comprehensive authorization under sec-
tions 120–130 of title 22, Code of Federal Regula-
tions (commonly known as the ‘International Traffic 
in Arms Regulations’) for the export of defense arti-
cles or defense services in an aggregate amount of 
$100,000,000 or more’’; 
(2) in paragraph (2)— 
(A) in subparagraph (A), by adding ‘‘and’’ 
at the end; 
(B) by striking subparagraph (B); and
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(C) by redesignating subparagraph (C) as 
subparagraph (B); and 
(3) in the matter preceding subparagraph (A) 
of paragraph (5), by inserting ‘‘or paragraph (2)’’ 
after ‘‘paragraph (1)’’. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that the Department of State should revise its proce-
dures in order to improve the timeliness and quality of 
service it is providing to United States exporters con-
cerning matters requiring notification to Congress under 
sections 3 and 36 of the Arms Export Control Act (22 
U.S.C. 2753 and 2776) by— 
(1) expediting its internal and interagency proc-
esses such that consultations with the Committee on 
International Relations of the House of Representa-
tives and the Committee on Foreign Relations of the 
Senate commence not later than 30 days following 
receipt of a proposal requiring notification; 
(2) providing informal notice to such Commit-
tees within 10 days of receipt of such a proposal, 
such that questions by the Committees may be ad-
dressed wherever feasible in conjunction with the 
Department’s processing; and
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(3) making each interval in the processing of 
the proposal transparent to United States exporters 
through the Internet website of the Department. 
SEC. 723. PRIORITY FOR UNITED STATES MILITARY OPER-
ATIONS. 
The Secretary of State may not accord higher priority 
in the adjudication of munitions export licenses to any 
measure included within the ‘‘Defense Trade Security Ini-
tiative’’ announced by the Department of State in May 
2000 over the processing of licenses in support of Oper-
ation Enduring Freedom, Operation Iraqi Freedom, or 
any other military operation involving the United States 
Armed Forces. 
SEC. 724. LICENSE OFFICER STAFFING AND WORKLOAD. 
Section 36(a) Arms Export Control Act (22 U.S.C. 
2776(a)) is amended— 
(1) in paragraph (11), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (12), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(13) a report on the number of civilian and 
military officers assigned to munitions export licens-
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ing at the Department of State and their average 
weekly workload for both open and closed cases.’’. 
SEC. 725. DATABASE OF UNITED STATES MILITARY ASSIST-
ANCE. 
Section 655 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2415) is amended by striking subsection (c) 
and inserting the following new subsection: 
‘‘(c) AVAILABILITY OF REPORT INFORMATION ON 
THE INTERNET.— 
‘‘(1) REQUIREMENT FOR DATABASE.—The Sec-
retary of State, in consultation with the Secretary of 
Defense, shall make available to the public the un-
classified portion of each such report in the form of 
a database that is available via the Internet and that 
may be searched by various criteria. 
‘‘(2) SCHEDULE
FOR
UPDATING.—Not later 
than April 1 of each year, the Secretary of State 
shall make available in the database the information 
contained in the annual report for the fiscal year 
ending the previous September 30.’’. 
SEC. 726. TRAINING AND LIAISON FOR SMALL BUSINESSES. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that it is increasingly important that the Secretary 
of State, in administering the licensing, registration, com-
pliance, and other authorities contained in section 38 of
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the Arms Export Control Act (22 U.S.C. 2778), should 
provide up-to-date training and other educational assist-
ance to small businesses in the United States aerospace 
and defense industrial sector. 
(b) SMALL BUSINESS LIAISON.—Not later than 180 
days after the date of the enactment of this Act, the Sec-
retary shall designate, within the Office of Defense Trade 
Controls of the Department of State, a coordinator for 
small business affairs. The coordinator shall serve as a 
liaison for small businesses in the United States aerospace 
and defense industrial sector with respect to licensing and 
registration requirements in order to facilitate the compli-
ance and other forms of participation by such small busi-
nesses in the United States munitions control system, in-
cluding by providing training, technical assistance, and 
through other efforts as may be appropriate. 
SEC. 727. COMMERCIAL COMMUNICATIONS SATELLITE 
TECHNICAL DATA. 
Not later than 180 days after the date of the enact-
ment of this Act, the Secretary of State, in consultation 
with the Secretary of Defense, shall amend the Inter-
national Traffic in Arms Regulations to provide for the 
export without a license of communications satellite tech-
nical data, at a level established by the Secretary of De-
fense, in instances in which—
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(1) the exporter is a person registered under 
section 38(b) of the Arms Export Control Act (22 
U.S.C. 2778(b)); 
(2) the purpose of the export is to market a 
sale of a United States manufactured communica-
tions satellite solely for commercial or civil end use; 
(3) no party to the transaction is proscribed 
under section 126.1 of the Regulations or otherwise 
restricted from receiving United States defense arti-
cles; and 
(4) each end user or recipient has agreed in 
writing not to reexport or retransfer the United 
States furnished technical data to any other person 
without the prior written consent of the United 
States Government. 
SEC. 728. 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:
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‘‘(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 spe-
cific exemption provision in the regulation under 
which the export was made.’’. 
Subtitle D—Terrorist-Related Pro-
visions and Enforcement Mat-
ters 
SEC. 731. SENSITIVE TECHNOLOGY TRANSFERS TO FOR-
EIGN 
PERSONS 
LOCATED 
WITHIN 
THE 
UNITED STATES. 
(a) WEAPONS TRANSFERS.—Pursuant to regulations 
issued under section 38(g)(6) of the Arms Export Control 
(22 U.S.C. 2778(g)(6)), the President shall require a li-
cense for the transfer of any defense articles and defense 
services, other than a firearm for personal use, specified 
in a report required under subsection (c) to a foreign per-
son located within the United States (other than to a for-
eign government, unless such government is proscribed 
under section 126.1 of the International Traffic in Arms
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Regulations or otherwise restricted from receiving defense 
articles and defense services). 
(b) DUAL USE TRANSFERS.—Notwithstanding any 
other provision of law, the President may require a license 
under the Export Administration Regulations for the 
transfer of any dual use goods and technology, other than 
a firearm for personal use, specified in a report required 
under subsection (c) to a foreign person located within the 
United States. 
(c) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, and annually thereafter, the 
Secretary of State, in consultation with the Attorney Gen-
eral and the Secretary of Homeland Security, shall submit 
to the appropriate congressional committees a report that 
specifies those items which warrant scrutiny and enforce-
ment by the Government of the United States through li-
cense procedures prior to a transfer to a foreign person 
located within the United States in order to deter efforts 
on the part of such person to acquire such items for ter-
rorist or other unlawful purposes. 
SEC. 732. CERTIFICATION CONCERNING EXEMPT WEAPONS 
TRANSFERS ALONG THE NORTHERN BORDER 
OF THE UNITED STATES. 
Not later than 180 days after the date of the enact-
ment of this Act, and annually thereafter, the Secretary
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of State, in consultation with the Secretary of Homeland 
Security, shall submit to the appropriate congressional 
committees a written report certifying that— 
(1) provisions of the International Traffic in 
Arms Regulations permitting unlicensed temporary 
imports into the United States from Canada by any 
person of any unclassified defense article on the 
United States Munitions List do not present a risk 
to the national security of the United States; and 
(2) personnel of the Bureau of Customs and 
Border Protection of the Department of Homeland 
Security located along the northern border of the 
United States have adequate written guidance from 
the Department of State which permits them to ef-
fectively enforce provisions of the International Traf-
fic in Arms Regulations permitting unlicensed ex-
ports to Canada of certain items on the United 
States Munitions List. 
SEC. 733. COMPREHENSIVE NATURE OF UNITED STATES 
ARMS EMBARGOES. 
(a) FINDINGS; SENSE OF CONGRESS.— 
(1) FINDINGS.—Congress finds that— 
(A) governments to which the Government 
of the United States prohibits by law or policy 
the transfer of implements of war, including
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material, components, parts, and other defense 
articles and defense services (as defined in 
paragraphs (3) and (4) of section 47 of the 
Arms Export Control Act (22 U.S.C. 2794(3) 
and (4)), respectively) continue to seek to evade 
these embargoes through increasingly sophisti-
cated illegal acquisitions via the ‘‘international 
gray arms market’’ and by seeking to exploit 
weaknesses in the export control system of the 
United States and its friends and allies; and 
(B) the strict and comprehensive applica-
tion of arms embargoes referred to in subpara-
graph (A), including those embargoes estab-
lished by the United Nations Security Council, 
is of fundamental importance to the security 
and foreign policy interests of the United 
States. 
(2) SENSE OF CONGRESS.—It is the sense of 
Congress that the United States Government should 
continue to provide a leadership role internationally 
in ensuring the effectiveness of arms embargoes re-
ferred to in paragraph (1). 
(b) SCOPE OF EMBARGOES.—Section 38 of the Arms 
Export Control Act (22 U.S.C. 2778) is amended by add-
ing at the end the following:
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‘‘(k) Whenever the United States maintains an arms 
embargo pursuant to United States law, or through public 
notice by the President or Secretary of State pursuant to 
the authorities of this Act, no defense article or defense 
service subject to sections 120–130 of title 22, Code of 
Federal Regulations (commonly known as the ‘Inter-
national Traffic in Arms Regulations’) and no dual use 
good or technology subject to sections 730–774 of title 15, 
Code of Federal Regulations (commonly known as the ‘Ex-
port Administration Regulations’) shall be knowingly sold 
or transferred for military end use to the military, intel-
ligence or other security forces of the embargoed govern-
ment, including any associated governmental agency, sub-
division, entity, or other person acting on their behalf, un-
less, at a minimum and without prejudice to any addi-
tional requirements established in United States law or 
regulation, the sale or transfer is approved through 
issuance of a license by the Secretary of State or the Sec-
retary of Commerce, as the case may be.’’. 
(c) REPORT.—Not later than 120 days after the date 
of the enactment of this Act, the Secretary of State, in 
consultation with the Secretary of Commerce and the Sec-
retary of Defense, shall submit to the appropriate congres-
sional committees a report that describes the actions taken
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to ensure the effective implementation of section 38(k) of 
the Arms Export Control Act, as added by subsection (b). 
SEC. 734. CONTROL OF ITEMS ON MISSILE TECHNOLOGY 
CONTROL REGIME ANNEX. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that all proposals to export or transfer to foreign 
persons by other means, whether in the United States or 
abroad, and any other activities subject to regulation 
under section 38, 39, or 40 of the Arms Export Control 
Act (22 U.S.C. 2778, 2779, or 2780), relating to items 
on the Missile Technology Control Regime Annex, should 
be accorded stringent control and scrutiny consistent with 
the purposes of section 71 of the Arms Export Control 
Act (22 U.S.C. 2797). 
(b) CONTROL OF ITEMS ON MTCR ANNEX.—The 
Secretary of State, in coordination with the Secretary of 
Commerce, the Attorney General, and the Secretary of De-
fense, shall ensure that all items on the MTCR Annex are 
subject to stringent control by the Government of the 
United States pursuant to the International Traffic in 
Arms Regulations and the Export Administration Regula-
tions. 
(c) CERTIFICATION.—Not later than March 1 of each 
year, the Secretary of State, in coordination with the Sec-
retary of Commerce, the Attorney General and the Sec-
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retary of Defense, shall submit to the appropriate congres-
sional committees a report that contains— 
(1) a certification that the requirement of sub-
section (b) has been met for the prior year, or if the 
requirement has not been met, the reasons therefor; 
and 
(2) a description of the updated coverage, if 
any, of the regulations referred to in subsection (b) 
with respect to all items on the MTCR Annex and 
an explanation of any areas of overlap or omissions, 
if any, among the regulations. 
SEC. 735. UNLAWFUL USE OF UNITED STATES DEFENSE AR-
TICLES. 
(a) 
INELIGIBILITY
FOR
TERRORIST
RELATED 
TRANSACTIONS.—Section 3(c)(1) of the Arms Export 
Control Act (22 U.S.C. 2753(c)(1)) is amended— 
(1) in each of subparagraphs (A) and (B), by 
striking ‘‘or any predecessor Act,’’ and inserting 
‘‘any predecessor Act, or licensed or approved under 
section 38 of this Act, to carry out a transaction 
with a country, the government of which the Sec-
retary of State has determined is a state sponsor of 
international terrorism for purposes of section 
6(j)(1) of the Export Administration Act of 1979
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(50 U.S.C. App. 2405(j)(1)), or otherwise uses such 
defense articles or defense services’’; and 
(2) by adding at the end the following: 
‘‘(C) In this section, the term ‘transaction’ means the 
taking of any action, directly or indirectly, by a foreign 
country that would be a transaction prohibited by section 
40 of this Act with respect to the United States Govern-
ment and United States persons.’’. 
(b) REPORTING REQUIREMENT.—Section 3(e) of the 
Arms Export Control Act (22 U.S.C. 2753(e)) is amended 
by inserting after ‘‘the Foreign Assistance Act of 1961,’’ 
the following: ‘‘regardless of whether the article or service 
has been sold or otherwise furnished by the United States 
Government or licensed under section 38 of this Act,’’. 
SEC. 736. PURPOSES OF ARMS SALES. 
Section 4 of the Arms Export Control Act (22 U.S.C. 
2754) is amended in the first sentence by inserting after 
‘‘solely for internal security’’ the following: ‘‘(including 
antiterrorism and border security)’’. 
Subtitle E—Strengthening United 
States Missile Nonproliferation 
Law 
SEC. 741. PROBATIONARY PERIOD FOR FOREIGN PERSONS. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, upon the expiration, or the granting of a waiv-
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er, on or after January 1, 2003, of sanctions against a 
foreign person imposed under section 73(a) of the Arms 
Export Control Act (22 U.S.C. 2797b(a)) or under section 
11B(b)(1) of the Export Administration Act of 1979 (50 
U.S.C. App. 2410b(b)(1)), as continued in effect under 
the International Emergency Economic Powers Act, a li-
cense shall be required, for a period of not less than three 
years, for the export to that foreign person of all items 
controlled for export under section 5 or 6 of the Export 
Administration Act of 1979 (50 U.S.C. App. 2404, 2405), 
as continued in effect under the International Emergency 
Economic Powers Act, in accordance with the Export Ad-
ministration Regulations. 
(b) TERMINATION.—Subsection (a) shall not apply to 
a foreign person 30 days after the President notifies the 
Committee on International Relations of the House of 
Representatives and the Committee on Banking, Housing 
and Urban Affairs and the Committee on Foreign Rela-
tions of the Senate that the President has determined 
that— 
(1) the foreign person has— 
(A) ceased all activity related to the origi-
nal imposition of sanctions under section 73(a) 
of the Arms Export Control Act or section
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11B(b)(1) of the Export Administration Act of 
1979, as the case may be; and 
(B) has instituted a program of trans-
parency measures under which the United 
States will be able to verify, for a period of at 
least 3 years, that the foreign person is not en-
gaging in prohibited activities under those pro-
visions of law referred to in paragraph (1); and 
(2) there has been an appropriate resolution of 
the original violation or violations, such as financial 
penalties, incarceration, destruction of prohibited 
items, or other appropriate measures taken to pre-
vent a recurrence of the violation or violations. 
(c) WAIVER.—Subsection (a) shall not apply to a for-
eign person if— 
(1) the President issues a waiver of sanctions 
imposed upon that person under section 73(a) of the 
Arms 
Export 
Control 
Act 
or 
under 
section 
11B(b)(1) of the Export Administration Act of 
1979, on the basis that the waiver is essential to the 
national security of the United States; 
(2) the President designates the waiver as clas-
sified information (as defined in section 606 of the 
National Security Act of 1947 (50 U.S.C. 426)); 
and
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(3) the President transmits to the committees 
referred to in subsection (b)— 
(A) a justification for designating the waiv-
er as classified information; and 
(B) a description of— 
(i) any discussions with the foreign 
person, concerning the activities that were 
the subject of the sanctions, that have been 
conducted by United States Government 
officials, or by officials of the government 
of the country that has jurisdiction over 
the foreign person or in which the foreign 
person conducted such activities; and 
(ii) any actions that the foreign per-
son, or the government of the country that 
has jurisdiction over the foreign person or 
in which the foreign person conducted the 
activities that were the subject of the sanc-
tions, has taken to prevent a recurrence of 
the same or similar activities. 
SEC. 742. STRENGTHENING UNITED STATES MISSILE PRO-
LIFERATION SANCTIONS ON FOREIGN PER-
SONS. 
(a) ARMS EXPORT CONTROL ACT.—Section 73(a)(2) 
of the Arms Export Control Act (22 U.S.C. 2797b(a)(2))
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is amended by striking ‘‘2 years’’ each place it appears 
and inserting ‘‘4 years’’. 
(b) PUBLIC INFORMATION.—Section 73(e)(2) of the 
Arms Export Control Act (22 U.S.C. 2797b(e)(2)) is 
amended by adding at the end the following new sen-
tences: ‘‘Such report may be classified only to the extent 
necessary to protect intelligence sources and methods. If 
the report is so classified, the President shall make every 
effort to acquire sufficient alternative information that 
would allow a subsequent unclassified version of the report 
to be issued.’’. 
(c) EXPORT ADMINISTRATION ACT OF 1979.—Any 
sanction imposed on a foreign person under section 
11B(b)(1) of the Export Administration Act of 1979 (50 
U.S.C. App. 2410b(b)(1)), as continued in effect under 
the International Emergency Economic Powers Act, shall 
be in effect for a period of four years beginning on the 
date on which the sanction was imposed. 
(d) APPLICABILITY.—The amendments made by sub-
sections (a) and (b) and the provisions of subsection (c) 
shall apply to all sanctions imposed under section 73(a) 
of the Arms Export Control Act or section 11B(b)(1) of 
the Export Administration Act of 1979, as continued in 
effect under the International Emergency Economic Pow-
ers Act, by reason of acts giving rise to such sanctions
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that were committed by foreign persons on or after Janu-
ary 1, 2004. 
SEC. 743. COMPREHENSIVE UNITED STATES MISSILE PRO-
LIFERATION SANCTIONS ON ALL RESPON-
SIBLE FOREIGN PERSONS. 
(a) ARMS EXPORT CONTROL ACT.—Section 73(a) of 
the Arms Export Control Act (22 U.S.C. 2797b(a)) is 
amended by adding at the end the following new para-
graph: 
‘‘(3)(A) Sanctions imposed upon a foreign person 
under paragraph (2) shall also be imposed on any govern-
mental entity that the President determines exercises ef-
fective control over, benefits from, or directly or indirectly 
facilitates the activities of that foreign person. 
‘‘(B) When a sanction is imposed on a foreign person 
under paragraph (2), the President may also impose that 
sanction on any other person or entity that the President 
has reason to believe has or may acquire prohibited items 
with the intent to transfer to that foreign person, or pro-
vide to that foreign person access to, such items. In this 
subparagraph, ‘prohibited items’ are items that may not 
be exported to that foreign person on account of the sanc-
tion imposed on that foreign person. 
‘‘(C) The President may also prohibit, for such period 
of time as the President may determine, any transaction
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or dealing, by a United States person or within the United 
States, with any foreign person on whom sanctions have 
been imposed under this subsection. 
‘‘(D) The President shall report on an annual basis 
to the Committee on International Relations of the House 
of Representatives and the Committee on Foreign Rela-
tions of the Senate the identity of any foreign person that 
engages in any transaction or activity with a foreign per-
son on whom sanctions have been imposed under this sub-
section that either— 
‘‘(i) would be the basis for imposing sanctions 
under subparagraph (B) but for which sanctions 
have not been imposed; or 
‘‘(ii) would be the basis for imposing sanctions 
under subparagraph (C) if the transaction or activity 
had been carried out by a United States person or 
by a person in the United States. 
Such report shall be unclassified to the maximum extent 
feasible, but may include a classified annex.’’. 
(b) DEFINITION OF PERSON.—Section 74(a)(8)(A) of 
the Arms Export Control Act (22 U.S.C. 2797c(a)(8)(A)) 
is amended to read as follows: 
‘‘(8)(A) The term ‘person’ means— 
‘‘(i) a natural person;
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‘‘(ii) a corporation, business associa-
tion, 
partnership, 
society, 
trust, 
transnational corporation, or transnational 
joint venture, any other nongovernmental 
entity, organization, or group, and any 
governmental entity; 
‘‘(iii) any subsidiary, subunit, or par-
ent entity of any business enterprise or 
other organization or entity listed in clause 
(ii); and 
‘‘(iv) any successor of any business 
enterprise or other organization or entity 
listed in clause (ii) or (iii); and’’. 
(c) EXPORT ADMINISTRATION ACT OF 1979.— 
(1) SANCTIONS
IMPOSED
ON
GOVERNMENTAL 
ENTITIES.—Any sanction imposed on a foreign per-
son under section 11B(b)(1)(B) of the Export Ad-
ministration 
Act 
of 
1979 
(50 
U.S.C. 
App. 
2410b(b)(1)(B)), as continued in effect under the 
International Emergency Economic Powers Act (in 
this subsection referred to as a ‘‘dual use sanction’’), 
shall also be imposed on any governmental entity 
that the President determines exercises effective con-
trol over, benefits from, or directly or indirectly fa-
cilitates the activities of that foreign person.
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(2) OTHER ENTITIES.—When a dual use sanc-
tion is imposed on a foreign person, the President 
may also impose that sanction on any other person 
or entity that the President has reason to believe 
has or may acquire prohibited items with the intent 
to transfer to that foreign person, or provide to that 
foreign person access to, such items. In this para-
graph, ‘‘prohibited items’’ are items that may not be 
exported to that foreign person on account of the 
dual use sanction imposed on that foreign person. 
(3) TRANSACTIONS BY THIRD PARTIES.—The 
President may also prohibit, for such period of time 
as he may determine, any transaction or dealing, by 
a United States person or within the United States, 
with any foreign person on whom dual use sanctions 
have been imposed. 
(4) REPORT.—The President shall submit on 
an annual basis to the Committee on International 
Relations of the House of Representatives and the 
Committee on Banking, Housing and Urban Affairs 
and the Committee on Foreign Relations of the Sen-
ate a report that contains the identity of any foreign 
person that engages in any transaction or activity 
with a foreign person on whom dual use sanctions 
have been imposed that either—
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(A) would be the basis for imposing dual 
use sanctions under paragraph (2) but for 
which such sanctions have not been imposed; or 
(B) would be the basis for imposing dual 
use sanctions under paragraph (3) if the trans-
action or activity had been carried out by a 
United States person or by a person in the 
United States. 
Such report shall be unclassified to the maximum 
extent feasible, but may include a classified annex. 
(5) DEFINITIONS.—In this subsection: 
(A) 
MISSILE
EQUIPMENT
OR
TECH-
NOLOGY.—The term ‘‘missile equipment or 
technology’’ has the meaning given that term in 
section 11B(c) of the Export Administration 
Act of 1979 (50 U.S.C. App. 2410b(c)). 
(B) PERSON.— 
(i) The term ‘‘person’’ means— 
(I) a natural person; 
(II) a corporation, business asso-
ciation, partnership, society, trust, 
transnational 
corporation, 
or 
transnational joint venture, any other 
nongovernmental entity, organization,
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or group, and any governmental enti-
ty; 
(III) any subsidiary, subunit, or 
parent entity of any business enter-
prise or other organization or entity 
listed in subclause (II); and 
(IV) any successor of any busi-
ness enterprise or other organization 
or entity listed in subclause (II) or 
(III). 
(ii) In the case of countries where it 
may be impossible to identify a specific 
governmental entity referred to in clause 
(i), the term ‘‘person’’ means— 
(I) all activities of that govern-
ment relating to the development or 
production of any missile equipment 
or technology; and 
(II) all activities of that govern-
ment affecting the development or 
production of aircraft, electronics, and 
space systems or equipment. 
(C) UNITED STATES PERSON.—The term 
‘‘United States person’’ has the meaning given 
that term in section 16(2) of the Export Ad-
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ministration Act of 1979 (50 U.S.C. App. 
2415(2)). 
(d) EFFECTIVE DATE.—The amendments made by 
subsections (a) and (b) shall apply with respect to sanc-
tions imposed on or after January 1, 2004, on foreign per-
sons under section 73(a)(2) of the Arms Export Control 
Act, and the provisions of subsection (c) shall apply with 
respect to sanctions imposed on or after January 1, 2004, 
on foreign persons under section 11B(b)(1) of the Export 
Administration 
Act 
of 
1979 
(50 
U.S.C. 
App. 
2410b(b)(1)), as continued in effect under the Inter-
national Emergency Economic Powers Act. 
Subtitle F—Security Assistance 
and Related Provisions 
SEC. 751. AUTHORITY TO TRANSFER NAVAL VESSELS TO 
CERTAIN FOREIGN COUNTRIES. 
(a) AUTHORITY
TO TRANSFER
BY GRANT.—The 
President is authorized to transfer vessels to foreign coun-
tries on a grant basis under section 516 of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2321j), as follows: 
(1) GREECE.—To the Government of Greece, 
the OSPREY class minehunter coastal ship PELI-
CAN (MHC–53).
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(2) EGYPT.—To the Government of Egypt, the 
OSPREY class minehunter coastal ships CAR-
DINAL (MHC–60) and RAVEN (MHC–61). 
(3) PAKISTAN.—To the Government of Paki-
stan, 
the 
SPRUANCE 
class 
destroyer 
ship 
FLETCHER (DD–992). 
(4) TURKEY.—To the Government of Turkey, 
the SPRUANCE class destroyer ship CUSHING 
(DD–985). 
(b) AUTHORITY TO TRANSFER BY SALE.—The Presi-
dent is authorized to transfer vessels to foreign countries 
on a sale basis under section 21 of the Arms Export Con-
trol Act (22 U.S.C. 2761), as follows: 
(1) INDIA.—To the Government of India, the 
AUSTIN class amphibious transport dock ship 
TRENTON (LPD–14). 
(2) GREECE.—To the Government of Greece, 
the OSPREY class minehunter coastal ship HERON 
(MHC–52). 
(3) TURKEY.—To the Government of Turkey, 
the SPRUANCE class destroyer ship O’BANNON 
(DD–987). 
(c) GRANTS NOT COUNTED IN ANNUAL TOTAL OF 
TRANSFERRED EXCESS DEFENSE ARTICLES.—The value 
of a vessel transferred to another country on a grant basis
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pursuant to authority provided by subsection (a) shall not 
be counted against the aggregate value of excess defense 
articles transferred to countries in any fiscal year under 
section 516(g) of the Foreign Assistance Act of 1961 (22 
U.S.C. 2321j(g)). 
(d) COSTS OF TRANSFERS.—Any expense incurred by 
the United States in connection with a transfer authorized 
under subsection (a) or (b) shall be charged to the recipi-
ent. 
(e) REPAIR
AND
REFURBISHMENT
IN
UNITED 
STATES SHIPYARDS.—To the maximum extent prac-
ticable, the President shall require, as a condition of the 
transfer of a vessel under this section, that the country 
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 that country, performed at a ship-
yard located in the United States, including a United 
States Navy shipyard. 
(f) EXPIRATION OF AUTHORITY.—The authority to 
transfer a vessel under this section shall expire at the end 
of the two-year period beginning on the date of the enact-
ment of this Act.
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SEC. 752. TRANSFER OF OBSOLETE AND SURPLUS ITEMS 
FROM KOREAN WAR RESERVES STOCKPILE 
AND REMOVAL OR DISPOSAL OF REMAINING 
ITEMS. 
(a) TRANSFER OF ITEMS IN KOREAN STOCKPILE.— 
(1) AUTHORITY.—Notwithstanding section 514 
of the Foreign Assistance Act of 1961 (22 U.S.C. 
2321h), the President is authorized to transfer to 
the Republic of Korea, in return for concessions to 
be negotiated by the Secretary of Defense, any or all 
of the items described in paragraph (2). 
(2) COVERED ITEMS.—The items referred to in 
paragraph (1) are munitions, equipment, and mate-
riel such as tanks, trucks, artillery, mortars, general 
purpose bombs, repair parts, barrier material, and 
ancillary equipment, if such items are— 
(A) obsolete or surplus items; 
(B) in the inventory of the Department of 
Defense; 
(C) intended for use as reserve stocks for 
the Republic of Korea; and 
(D) as of the date of the enactment of this 
Act, located in a stockpile in the Republic of 
Korea.
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HR 2601 PCS 
(3) VALUATION
OF
CONCESSIONS.—(A) The 
value of concessions negotiated pursuant to para-
graph (1) shall be at least equal to— 
(i) the fair market value of the items 
transferred; minus 
(ii) the savings to the Department of De-
fense of the cost of removal of the items from 
the Republic of Korea and disposal of the items 
that would have been incurred by the Depart-
ment but for the transfer of the items pursuant 
to paragraph (1), not to exceed the fair market 
value of the items transferred. 
(B) The concessions may include cash com-
pensation, service, waiver of charges otherwise pay-
able by the United States, such as charges for demo-
lition of United States-owned or United States-in-
tended munitions, and other items of value. 
(4) 
PRIOR
NOTIFICATIONS
OF
PROPOSED 
TRANSFERS.—Not less than 30 days before making 
a transfer under the authority of this subsection, the 
President shall transmit to the Committees on 
Armed Services and International Relations of the 
House of Representatives and the Committees on 
Armed Services and Foreign Relations of the Senate 
a detailed notification of the proposed transfer,