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the first section of that Act is transferred to the end
of such table of contents and revised so as to reflect
such redesignation.
(2) Section 1412(g)(2) of the Department of
Defense Authorization Act, 1986 (50 U.S.C.
1521(g)(2)), is amended—
(A) in the matter preceding subparagraph
(A), by striking out ‘‘shall contain—’’ and in-
serting in lieu thereof ‘‘shall include the follow-
ing:’’;
(B) in subparagraph (A)—
(i) by striking out ‘‘a’’ before ‘‘site-by-
site’’ and inserting in lieu thereof ‘‘A’’; and
(ii) by striking out the semicolon at
the end and inserting in lieu thereof a pe-
riod; and
(C) in subparagraphs (B) and (C), by
striking out ‘‘an’’ at the beginning of the sub-
paragraph and and inserting in lieu thereof
‘‘An’’.
(f) COORDINATION WITH OTHER AMENDMENTS.—
For purposes of applying amendments made by provisions
of this Act other than provisions of this section, this sec-
tion shall be treated as having been enacted immediately
before the other provisions of this Act.
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SEC. 1040. PROHIBITION ON CARRYING OUT SR–71 STRATE-
GIC RECONNAISSANCE PROGRAM DURING
FISCAL YEAR 1997.
The Secretary of Defense may not carry out any aer-
ial reconnaissance program during fiscal year 1997 using
the SR–71 aircraft.
SEC. 1041. DEFENSE BURDENSHARING.
(a) FINDINGS.—Congress makes the following find-
ings:
(1) Although the Cold War has ended, the
United States continues to spend billions of dollars
to promote regional security and to make prepara-
tions for regional contingencies.
(2) United States defense expenditures pri-
marily promote United States national security in-
terests; however, they also significantly contribute to
the defense of our allies.
(3) In 1993, the gross domestic product of the
United States equaled $6,300,000,000,000, while
the gross domestic product of other NATO member
countries totaled $7,200,000,000,000.
(4) Over the course of 1993, the United States
spent 4.7 percent of its gross domestic product on
defense, while other NATO members collectively
spent 2.5 percent of their gross domestic product on
defense.
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(5) In addition to military spending, foreign as-
sistance plays a vital role in the establishment and
maintenance of stability in other nations and in im-
plementing the United States national security strat-
egy.
(6) This assistance has often prevented the out-
break of conflicts which otherwise would have re-
quired costly military interventions by the United
States and our allies.
(7) From 1990–1993, the United States spent
$59,000,000,000 in foreign assistance, a sum which
represents an amount greater than any other nation
in the world.
(8) In 1995, the United States spent over
$10,000,000,000 to promote European security,
while European NATO nations only contributed
$2,000,000,000 toward this effort.
(9) With a smaller gross domestic product and
a larger defense budget than its European NATO
allies, the United States shoulders an unfair share
of the burden of the common defense.
(10) Because of this unfair burden, the Con-
gress previously voted to require United States allies
to bear a greater share of the costs incurred for
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keeping United States military forces permanently
assigned in their countries.
(11) As a result of this action, for example,
Japan now pays over 75 percent of the nonpersonnel
costs incurred by United States military forces per-
manently assigned there, while our European allies
pay for less than 25 percent of these same costs.
Japan signed a new Special Measures Agreement
this year which will increase Japan’s contribution to-
ward the cost of stationing United States troops in
Japan by approximately $30,000,000 a year over the
next five years.
(12) These increased contributions help to rec-
tify the imbalance in the burden shouldered by the
United States for the common defense.
(13) The relative share of the burden of the
common defense still falls too heavily on the United
States, and our allies should dedicate more of their
own resources to defending themselves.
(b) 
EFFORTS
TO
INCREASE
ALLIED
BURDENSHARING.—The President shall seek to have each
nation that has cooperative military relations with the
United States (including security agreements, basing ar-
rangements, or mutual participation in multinational mili-
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tary organizations or operations) take one or more of the
following actions:
(1) For any nation in which United States mili-
tary personnel are assigned to permanent duty
ashore, increase its financial contributions to the
payment of the nonpersonnel costs incurred by the
United States Government for stationing United
States military personnel in that nation, with a goal
of achieving the following percentages of such costs:
(A) By September 30, 1997, 37.5 percent.
(B) By September 30, 1998, 50 percent.
(C) By September 30, 1999, 62.5 percent.
(D) By September 30, 2000, 75 percent.
An increase in financial contributions by any nation
under this paragraph may include the elimination of
taxes, fees, or other charges levied on United States
military personnel, equipment, or facilities stationed
in that nation.
(2) Increase its annual budgetary outlays for
national defense as a percentage of its gross domes-
tic product by 10 percent or at least to a level com-
mensurate to that of the United States by Septem-
ber 30, 1997.
(3) Increase its annual budgetary outlays for
foreign assistance (to promote democratization, eco-
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nomic stabilization, transparency arrangements, de-
fense economic conversion, respect for the rule of
law, and internationally recognized human rights) by
10 percent or at least to a level commensurate to
that of the United States by September 30, 1997.
(4) Increase the amount of military assets (in-
cluding personnel, equipment, logistics, support and
other resources) that it contributes, or would be pre-
pared to contribute, to multinational military activi-
ties worldwide, including United Nations or regional
peace operations.
(c) AUTHORITIES TO ENCOURAGE ACTIONS BY UNIT-
ED STATES ALLIES.—In seeking the actions described in
subsection (b) with respect to any nation, or in response
to a failure by any nation to undertake one or more of
such actions, the President may take any of the following
measures:
(1) Reduce the end strength level of members
of the Armed Forces assigned to permanent duty
ashore in that nation.
(2) Impose on that nation taxes, fees, or other
charges similar to those that such nation imposes on
United States forces stationed in that nation.
(3) Reduce (through rescission, impoundment,
or other appropriate procedures as authorized by
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law) the amount the United States contributes to
the NATO Civil Budget, Military Budget, or Secu-
rity Investment Program.
(4) Suspend, modify, or terminate any bilateral
security agreement the United States has with that
nation.
(5) Reduce (through rescission, impoundment
or other appropriate procedures as authorized by
law) any United States bilateral assistance appro-
priated for that nation.
(6) Take any other action the President deter-
mines to be appropriate as authorized by law.
(d) REPORT ON PROGRESS IN INCREASING ALLIED
BURDENSHARING.—Not later than March 1, 1997, the
Secretary of Defense shall submit to Congress a report
on—
(1) steps taken by other nations to complete the
actions described in subsection (b);
(2) all measures taken by the President, includ-
ing those authorized in subsection (c), to achieve the
actions described in subsection (b); and
(3) the budgetary savings to the United States
that are expected to accrue as a result of the steps
described under paragraph (1).
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(e) REPORT ON NATIONAL SECURITY BASES FOR
FORWARD DEPLOYMENT
AND BURDENSHARING RELA-
TIONSHIPS.—(1) In order to ensure the best allocation of
budgetary resources, the President shall undertake a re-
view of the status of elements of the United States Armed
Forces that are permanently stationed outside the United
States. The review shall include an assessment of the fol-
lowing:
(A) The alliance requirements that are to be
found in agreements between the United States and
other countries.
(B) The national security interests that support
permanently stationing elements of the United
States Armed Forces outside the United States.
(C) The stationing costs associated with the
forward deployment of elements of the United States
Armed Forces.
(D) The alternatives available to forward de-
ployment (such as material prepositioning, enhanced
airlift and sealift, or joint training operations) to
meet such alliance requirements or national security
interests, with such alternatives identified and de-
scribed in detail.
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(E) The costs and force structure configura-
tions associated with such alternatives to forward
deployment.
(F) The financial contributions that allies of
the United States make to common defense efforts
(to promote democratization, economic stabilization,
transparency arrangements, defense economic con-
version, respect for the rule of law, and internation-
ally recognized human rights).
(G) The contributions that allies of the United
States make to meeting the stationing costs associ-
ated with the forward deployment of elements of the
United States Armed Forces.
(H) The annual expenditures of the United
States and its allies on national defense, and the rel-
ative percentages of each nation’s gross domestic
product constituted by those expenditures.
(2) The President shall submit to Congress a report
on the review under paragraph (1). The report shall be
submitted not later than March 1, 1997, in classified and
unclassified form.
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SEC. 1042. AUTHORITY TO TRANSPORT HEALTH PROFES-
SIONALS SEEKING TO PROVIDE HEALTH-RE-
LATED HUMANITARIAN RELIEF SERVICES.
Section 402 of title 10, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(e)(1) Notwithstanding any other provision of law,
and subject to paragraph (2), the Secretary of Defense
may transport to any country, without charge, health pro-
fessionals who are traveling in order to furnish health-care
related services as part of a humanitarian relief activity.
Such transportation may be provided only on an invita-
tional space-required noninterference basis.
‘‘(2) Any expenses incurred as a direct result of pro-
viding such transportation shall be paid out of funds spe-
cifically appropriated to the Department of Defense for
Overseas 
Humanitarian, 
Disaster, 
and 
Civic 
Aid
(OHDACA) programs of the Department.’’.
SEC. 1043. TREATMENT OF EXCESS DEFENSE ARTICLES OF
COAST GUARD UNDER FOREIGN ASSISTANCE
ACT OF 1961.
(a) DEFINITION OF EXCESS DEFENSE ARTICLE.—
Section 644(g) of the Foreign Assistance Act of 1961 (22
U.S.C. 2403(g)) is amended by adding at the end the fol-
lowing new sentence: ‘‘Such term includes excess property
of the Coast Guard.’’.
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(b) CONFORMING
AMENDMENT.—Section 517 of
such Act (22 U.S.C. 2321k) is amended by striking out
subsection (k).
SEC. 1044. FORFEITURE OF RETIRED PAY OF MEMBERS
WHO ARE ABSENT FROM THE UNITED STATES
TO AVOID PROSECUTION.
(a) DEVELOPMENT OF FORFEITURE PROCEDURES.—
Not later than 30 days after the date of the enactment
of this Act, the Secretary of Defense shall develop uniform
procedures under which the Secretary of a military depart-
ment may cause to be forfeited the retired pay of a mem-
ber or former member of the uniformed services who will-
fully remains outside the United States to avoid criminal
prosecution or civil liability. The types of offenses for
which the procedures shall be used shall include the of-
fenses specified in section 8312 of title 5, United States
Code, and such other criminal offenses and civil proceed-
ings as the Secretary of Defense considers to be appro-
priate.
(b) REPORT TO CONGRESS.—The Secretary of De-
fense shall submit to Congress a report describing the pro-
cedures developed under subsection (a). The report shall
include recommendations regarding changes to existing
law, including section 8313 of title 5, United States Code,
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that the Secretary determines are necessary to fully imple-
ment the procedures.
(c) RETIRED PAY DEFINED.—In this section, the
term ‘‘retired pay’’ means retired pay, retirement pay, re-
tainer pay, or equivalent pay, payable under a statute to
a member or former member of a uniformed service.
SEC. 1045. CHEMICAL STOCKPILE EMERGENCY PREPARED-
NESS PROGRAM.
(a) REPORT.—Not later than 120 days after the date
of the enactment of this Act, the Secretary of the Army
shall submit to the Committee on Armed Services of the
Senate and the Committee on National Security of the
House of Representatives a report assessing the imple-
mentation and success of the establishment of site-specific
Integrated Product and Process Teams as a management
tool for the Chemical Stockpile Emergency Preparedness
Program.
(b) CONTINGENT MANDATED REFORMS.—If at the
end of the 120-day period beginning on the date of the
enactment of this Act the Secretary of the Army and the
Director of the Federal Emergency Management Agency
have been unsuccessful in implementing a site-specific In-
tegrated Product and Process Team with each of the af-
fected States, the Secretary of the Army shall—
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(1) assume full control and responsibility for
the Chemical Stockpile Emergency Preparedness
Program (eliminating the role of the Director of the
Federal Emergency Management Agency as joint
manager of the program);
(2) establish programmatic agreement with
each of the affected States regarding program re-
quirements, implementation schedules, training and
exercise requirements, and funding (to include direct
grants for program support);
(3) clearly define the goals of the program; and
(4) establish fiscal constraints for the program.
SEC. 1046. QUARTERLY REPORTS REGARDING COPRODUC-
TION AGREEMENTS.
(a) QUARTERLY
REPORTS
ON
COPRODUCTION
AGREEMENTS.—Section 36(a) of the Arms Export Con-
trol Act (22 U.S.C. 2776(a)) is amended—
(1) by striking out ‘‘and’’ at the end of para-
graph (10);
(2) by striking out the period at the end of
paragraph (11) and inserting in lieu thereof ‘‘; and’’;
and
(3) by inserting after paragraph (11) the fol-
lowing new paragraph:
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‘‘(12) a report on all concluded government-to-
government agreements regarding foreign coproduc-
tion of defense articles of United States origin and
all other concluded agreements involving coproduc-
tion or licensed production outside of the United
States of defense articles of United States origin (in-
cluding coproduction memoranda of understanding
or agreement) that have not been previously re-
ported under this subsection, which shall include—
‘‘(A) the identity of the foreign countries,
international organizations, or foreign firms in-
volved;
‘‘(B) a description and the estimated value
of the articles authorized to be produced, and
an estimate of the quantity of the articles au-
thorized to be produced;
‘‘(C) a description of any restrictions on
third party transfers of the foreign-manufac-
tured articles; and
‘‘(D) if any such agreement does not pro-
vide for United States access to and verification
of quantities of articles produced overseas and
their disposition in the foreign country, a de-
scription of alternative measures and controls
incorporated in the coproduction or licensing
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program to ensure compliance with restrictions
in the agreement on production quantities and
third party transfers.’’.
(b) EFFECTIVE DATE.—Paragraph (12) of section
36(a) of the Arms Export Control Act, as added by sub-
section (a)(3), does not apply with respect to an agreement
described in such paragraph entered into before the date
of the enactment of this Act.
SEC. 1047. FAILURE TO COMPLY WITH VETERANS’ PREF-
ERENCE REQUIREMENTS TO BE TREATED AS
A PROHIBITED PERSONNEL PRACTICE.
(a) IN GENERAL.—An employee of the Department
of Defense who has authority to take, direct others to
take, recommend, or approve any personnel action, shall
not, with respect to such authority, take or fail to take
any personnel action with respect to an employee or appli-
cant for employment if the taking of or failure to take
such action would violate any law, rule, or regulation im-
plementing, or directly concerning, veterans’ preference.
(b) EFFECT OF NONCOMPLIANCE.—A failure to com-
ply with subsection (a) shall be treated as a prohibited
personnel practice.
(c) REPORTING REQUIREMENT.—The Secretary of
Defense shall, not later than 6 months after the date of
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the enactment of this Act, submit a written report to each
House of Congress with respect to—
(1) the implementation of this section; and
(2) the administration of veterans’ preference
requirements by the Department of Defense gen-
erally.
(d) DEFINITIONS.—For the purpose of this section,
the terms ‘‘personnel action’’ and ‘‘prohibited personnel
practice’’ shall have the respective meanings given them
by section 2302 of title 5, United States Code.
SEC. 1048. SENSE OF CONGRESS AND PRESIDENTIAL RE-
PORT REGARDING NUCLEAR WEAPONS PRO-
LIFERATION AND POLICIES OF THE PEOPLE’S
REPUBLIC OF CHINA.
(a) FINDINGS.—The Congress finds that—
(1) intelligence investigations by the United
States have revealed transfers from the People’s Re-
public of China to Pakistan of sophisticated equip-
ment important to the development of nuclear weap-
ons;
(2) the People’s Republic of China acceded to
the Treaty on the Non-Proliferation of Nuclear
Weapons (hereafter in this section referred to as the
‘‘NPT’’) as a nuclear-weapon state on March 9,
1992;
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(3) Article I of the NPT stipulates that a nu-
clear-weapon state party to the treaty shall not in
any way encourage, assist, or induce any non-nu-
clear-weapon state to manufacture or otherwise ac-
quire nuclear weapons;
(4) the NPT establishes a non-nuclear-weapon
state as one which has not manufactured and ex-
ploded a nuclear weapon by January 1, 1967;
(5) Pakistan had not manufactured and ex-
ploded a nuclear weapon by January 1, 1967;
(6) Article III of the NPT requires each party
to the treaty not to provide to any non-nuclear-
weapon state equipment or material designed or pre-
pared for the processing, use, or production of spe-
cial fissionable material, unless the material is sub-
ject to the safeguards stipulated in the treaty;
(7) Pakistan has not acceded to the NPT, and
nuclear-related equipment and material provided to
Pakistan is not subject to international safeguards;
(8) under the NPT, assisting a non-nuclear-
weapon state to acquire unsafeguarded nuclear ma-
terial important to the manufacture of nuclear weap-
ons is a violation of Articles I and III of the NPT;
(9) this transfer constitutes the latest example
in a consistent pattern of nuclear weapon-related ex-
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ports by the People’s Republic of China to non-nu-
clear-weapon states in violation of international trea-
ties and agreements and United States laws relating
to the nonproliferation of nuclear weapons;
(10) failure to enforce the applicable sanctions
available under United States law in this case com-
promises vital security interests and undermines the
credibility of United States and international efforts
to discourage commerce in nuclear-related equip-
ment, technology, and materials;
(11) recent claims by senior Chinese officials
that the Government of the People’s Republic of
China was unaware of any transfers of ring magnets
by a goverment-owned entity, if true, call into ques-
tion the reliability and effectiveness of Chinese ex-
port controls; and
(12) recent exports of sophisticated nuclear-re-
lated technologies reduce the credibility of previous
assurances by the People’s Republic of China con-
cerning its nonproliferation policies since the ratifi-
cation of the NPT.
(b) SENSE OF CONGRESS.—It is the sense of the
Congress that in responding to the transfer from the Peo-
ple’s Republic of China to Pakistan of equipment impor-
tant to the development of a nuclear weapons program—
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(1) the President should not have decided that
there was not a sufficient basis to warrant a deter-
mination that sanctionable activity occurred under
section 2(b)(4) of the Export-Import Bank Act of
1945, as amended by section 825 of the Nuclear
Proliferation Prevention Act of 1994; and
(2) the President should have imposed the
strongest possible sanctions available under United
States law on all Chinese official and commercial en-
tities associated directly or indirectly with the re-
search, development, sale, transportation, or financ-
ing of any nuclear or military industrial product or
service made available for export since March 9,
1992.
(c) REPORT.—Not later than 60 days after the date
of the enactment of this Act, the President shall submit
to the Congress a report on the response of the United
States to the transfer from the People’s Republic of China
to Pakistan of equipment important to the development
of a nuclear weapons program. The President shall include
in the report the following:
(1) The specific justification of the Secretary of
State for determining that there was not sufficient
basis for imposing sanctions under section 2(b)(4) of
the Export-Import Bank Act of 1945, as amended
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by section 825 of the Nuclear Proliferation Preven-
tion Act of 1994, by reason of such transfer from
the People’s Republic of China to Pakistan.
(2) What commitment the United States Gov-
ernment is seeking from the People’s Republic of
China to ensure that the People’s Republic of China
establishes a fully effective export control system
that will prevent transfers (such as the Pakistan
sale) from taking place in the future.
(3) Whether, in light of the recent assurances
provided by the People’s Republic of China, the
President intends to make the certification and sub-
mit the report required by section 902(a)(6)(B) of
the Foreign Relations Authorization Act, Fiscal
Years 1990 and 1991 (22 U.S.C. 2151 note), and
make the certification and submit the report re-
quired by Public Law 99–183, relating to the ap-
proval and implementation of the agreement for nu-
clear cooperation between the United States and the
People’s Republic of China, and, if not, why not.
(4) Whether the Secretary of State considers
the recent assurances and clarifications provided by
the People’s Republic of China to have provided suf-
ficient information to allow the United States to de-
termine that the People’s Republic of China is not
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in violation of paragraph (2) of section 129 of the
Atomic Energy Act of 1954, as required by Public
Law 99–183.
(5) If the President is unable or unwilling to
make the certifications and reports referred to in
paragraph (3), a description of what the President
considers to be the significance of the clarifications
and assurances provided by the People’s Republic of
China in the course of the recent discussions regard-
ing the transfer by the People’s Republic of China
of nuclear-weapon-related equipment to Pakistan.
SEC. 1049. TRANSFER OF U.S.S. DRUM TO CITY OF VALLEJO,
CALIFORNIA.
(a) TRANSFER.—The Secretary of the Navy shall
transfer the U.S.S. Drum (SSN–677) to the city of
Vallejo, California, in accordance with this section and
upon satisfactory completion of a ship donation applica-
tion. Before making such transfer, the Secretary of the
Navy shall remove from the vessel the reactor compart-
ment and other classified and sensitive military equip-
ment.
(b) FUNDING.—As provided in section 7306(c) of
title 10, United States Code, the transfer of the vessel au-
thorized by this section shall be made at no cost to the
United States (beyond the cost which the United States
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would otherwise incur for dismantling and recycling of the
vessel).
(c) APPLICABLE LAW.—The transfer under this sec-
tion shall be subject to subsection (b) of section 7306 of
title 10, United States Code, but the provisions of sub-
section (d) of such section shall not be applicable to such
transfer.
SEC. 1050. EVALUATION OF DIGITAL VIDEO NETWORK
EQUIPMENT USED IN OLYMPIC GAMES.
(a) EVALUATION.—The Secretary of Defense shall
evaluate the digital video network equipment used in the
1996 Olympic games to determine whether such equip-
ment would be appropriate for use as a test bed for the
military application of commercial off-the-shelf advanced
technology linking multiple continents, multiple satellites,
and multiple theaters of operations by compressed digital
audio and visual broadcasting technology.
(b) REPORT.—Not later than December 31, 1996,
the Secretary of Defense shall submit to Congress a report
on the results of the evaluation conducted under sub-
section (a).
SEC. 1051. MISSION OF THE WHITE HOUSE COMMUNICA-
TIONS AGENCY.
The Secretary of Defense shall ensure that the activi-
ties of the White House Communications Agency (or any
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successor agency) in providing support services for the
President from funds appropriated for the Department of
Defense for any fiscal year (beginning with fiscal year
1997) are limited to the provision of telecommunications
support to the President and Vice President and related
elements (as defined in regulations of that agency and
specified by the President with respect to particular indi-
viduals within those related elements).
SEC. 1052. TRANSFER OF NAVAL VESSELS TO CERTAIN FOR-
EIGN COUNTRIES.
(a) AUTHORITY TO TRANSFER NAVAL VESSELS.—
The Secretary of the Navy is authorized to transfer to
other nations and instrumentalities vessels as follows:
(1) EGYPT.—To the Government of Egypt, the
Oliver Hazard Perry class frigate Gallery.
(2) MEXICO.—To the Government of Mexico,
the Knox class frigates Stein (FF 1065) and Marvin
Shields (FF 1066).
(3) NEW
ZEALAND.—To the Government of
New Zealand, the Stalwart class ocean surveillance
ship Tenacious.
(4) PORTUGAL.—To the Government of Por-
tugal, the Stalwart class ocean surveillance ship Au-
dacious.
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(5) For fissile material containers in Russia,
$38,500,000.
(6) For weapons storage security in Russia,
$15,000,000.
(7) For activities designated as Defense and
Military-to-Military Contacts in Russia, Ukraine,
Belarus, and Kazakhstan, $10,000,000.
(8) For activities designated as Other Assess-
ments/Administrative Support $19,900,000.
SEC. 1103. PROHIBITION ON USE OF FUNDS FOR SPECIFIED
PURPOSES.
(a) IN GENERAL.—None of the funds appropriated
pursuant to the authorization in section 301 for Coopera-
tive Threat Reduction programs, or appropriated for such
programs for any prior fiscal year and remaining available
for obligation, may be obligated or expended for any of
the following purposes:
(1) Conducting with Russia any peacekeeping
exercise or other peacekeeping-related activity.
(2) Provision of housing.
(3) Provision of assistance to promote environ-
mental restoration.
(4) Provision of assistance to promote job re-
training.