(4) unimpeded lawful and sustainable com-
merce, to include the cessation of illegal, unreported, 
and unregulated fishing, joint use and development 
of the South China Sea’s underwater and seabed re-
sources, and support for the ecological sustainment 
of the South China Sea; and 
(5) respect for international law. 
SEC. 102. STATEMENT OF POLICY ON CLAIMS THAT IM-
PINGE ON RIGHTS, FREEDOMS, AND LAWFUL 
USE OF THE SEAS. 
It is the policy of the United States— 
(1) to not take a position on the competing ter-
ritorial claims to land features in the South China 
Sea; 
(2) to oppose claims in the maritime domains 
that impinge on the rights, freedoms, and lawful use 
of the seas that belong to all nations; 
(3) to uphold the principle that territorial and 
maritime claims, including territorial seas, must be 
derived from land features and otherwise comport 
with international law; and 
(4)(A) to note that the decision by the Inter-
national Tribunal on the Law of the Sea in the case 
of ‘‘The Republic of Philippines v. The People’s Re-
public of China’’ is binding on all parties involved in 
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accordance with international law and pursuant to 
the Philippines and the treaty obligations of the 
People’s Republic of China; and 
(B) to call on the parties to abide by the ruling. 
SEC. 103. STATEMENT OF POLICY ON OPPOSITION TO UNI-
LATERAL ACTIONS TO CHANGE THE STATUS 
QUO IN THE SOUTH CHINA SEA. 
It is the policy of the United States— 
(1) to oppose the unilateral actions by any 
claimant seeking to change the status quo in the 
South China Sea through the use of coercion, intimi-
dation, or military force; 
(2) to oppose provocative reclamation and is-
land building activities in the South China Sea, in-
cluding the militarization of any reclaimed features; 
(3) to oppose actions by any country to prevent 
any other country from exercising, consistent with 
international law, its sovereign rights to the re-
sources of the exclusive economic zone (EEZ) and 
continental shelf by making claims to those areas in 
the South China Sea that are inconsistent with 
international law; and 
(4) to oppose unilateral declarations of adminis-
trative and military districts or fishing regulations in 
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contested areas in the South China Sea, which have 
raised tensions. 
SEC. 104. STATEMENT OF POLICY AND SENSE OF CON-
GRESS ON THE COMMITMENT AND SUPPORT 
OF THE UNITED STATES FOR ALLIES AND 
PARTNERS IN THE ASIA-PACIFIC REGION. 
(a) STATEMENT OF POLICY.—It is the policy of the 
United States— 
(1) to affirm its unwavering commitment and 
support for allies and partners in the Asia-Pacific 
region; 
(2) to reaffirm Article IV of the United States- 
Philippines Mutual Defense Treaty which provides 
that ‘‘each Party recognizes that an armed attack on 
either Party in the Pacific Area on either of the Par-
ties would be dangerous to its own peace and safety 
and declares that it would act to meet the common 
dangers in accordance with its constitutional proc-
esses’’; and 
(3) to affirm that Article V of the United 
States-Japan Treaty of Mutual Cooperation and Se-
curity applies to the Japanese-administered Senkaku 
Islands. 
(b) SENSE OF CONGRESS.—It is the sense of the 
Congress that the United States should continue sup-
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porting the efforts to the Southeast Asian nations to 
strengthen their maritime security capacity, domain 
awareness, and integration of their capabilities. 
SEC. 105. STATEMENT OF POLICY ON EFFORTS OF THE AS-
SOCIATION OF SOUTHEAST ASIAN NATIONS 
AND THE PEOPLE’S REPUBLIC OF CHINA TO 
DEVELOP AN EFFECTIVE CODE OF CONDUCT. 
It is the policy of the United States— 
(1) to support efforts by the Association of 
Southeast Asian Nations (ASEAN) and the People’s 
Republic of China to develop an effective Code of 
Conduct; 
(2) to encourage claimants not to undertake 
new or unilateral attempts to change the status quo 
since the signing of the 2002 Declaration of Con-
duct, including reclamation activities, asserting pro-
vocative administrative measures or controls in dis-
puted areas in the South China Sea, or inhabiting 
uninhabited land features; and 
(3) to support efforts by claimants through 
ASEAN to seek a peaceful settlement of disputes 
among themselves and with the People’s Republic of 
China. 
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SEC. 106. STATEMENT OF POLICY ON THE CONTINUITY OF 
OPERATIONS IN THE ASIA-PACIFIC REGION. 
It is the policy of the United States to assure the 
continuity of operations in the Asia-Pacific region, includ-
ing, when appropriate, in cooperation with partners and 
allies, in order to reaffirm the rights, freedoms, and lawful 
uses of the sea and airspace in accordance with inter-
national law. 
TITLE II—MARITIME CAPACITY 
BUILDING ASSISTANCE 
SEC. 201. PRIORITIES FOR MARITIME CAPACITY BUILDING 
ASSISTANCE. 
(a) SELECTION OF COUNTRIES.—In selecting coun-
tries in the Asia-Pacific region with respect to the provi-
sion of maritime capacity building assistance, the Sec-
retary of State may prioritize those countries that will con-
tribute to the achievement of following objectives: 
(1) Retaining unhindered lawful access to and 
use of waterways in the Asia-Pacific region that are 
critical to ensuring the security and free flow of 
commerce and achieving United States national se-
curity objectives. 
(2) Improving maritime domain awareness in 
the Asia-Pacific region. 
(3) Countering piracy in the Asia-Pacific re-
gion. 
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(4) Disrupting illicit maritime trafficking activi-
ties and other forms of maritime trafficking activity 
in the Asia-Pacific that directly benefit organizations 
that have been determined to be a security threat to 
the United States. 
(5) Enhancing the maritime capabilities of a 
country or regional organization to respond to 
emerging threats to maritime security in the Asia- 
Pacific region. 
(b) PRIORITIES.—In carrying out the provision of 
maritime capacity building under subsection (a)— 
(1) priority may be placed on assistance to en-
hance the maritime security capabilities of the mili-
tary or security forces of countries in the Asia-Pa-
cific region that have maritime missions and the 
government agencies responsible for such forces; and 
(2) assistance may be provided to countries in 
the Asia-Pacific region to enhance the capabilities of 
such countries, or of regional organizations that in-
cludes such countries, to conduct— 
(A) maritime intelligence, surveillance, and 
reconnaissance; 
(B) littoral and port security; 
(C) Coast Guard operations; 
(D) command and control; and 
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(E) management and oversight of maritime 
activities. 
(c) ANNUAL REPORT.—The Secretary of State shall 
include in the report required to be submitted under sec-
tion 802 information on the status of the provision of 
equipment, training, supplies, or other services provided 
pursuant to maritime capacity building in the Asia-Pacific 
in the preceding year. 
SEC. 202. SECURITY ASSISTANCE COORDINATION. 
The Secretary of State should seek to develop a bilat-
eral memorandum of understanding with each of the Gov-
ernments of the Philippines, Malaysia, Vietnam, and Indo-
nesia to outline the delivery of planned maritime security 
capabilities to assist such countries, consistent with this 
Act and subject to availability of appropriations, through 
fiscal year 2020. Each memorandum of understanding 
should account for Foreign Military Financing program 
and any other United States security assistance authori-
ties and programs provided to the relevant country. 
TITLE III—INTERNATIONAL MIL-
ITARY 
EDUCATION 
AND 
TRAINING 
SEC. 301. AUTHORIZATION OF APPROPRIATIONS. 
There is authorized to be appropriated to the Sec-
retary of State $15,000,000 for each of the fiscal years 
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2017 through 2020 for assistance under chapter 5 of part 
II of the Foreign Assistance Act of 1961 (22 U.S.C. 2301 
et seq.) (relating to international military education and 
training) for the Asia-Pacific region in accordance with 
the provisions of this Act. 
TITLE IV—FOREIGN MILITARY 
FINANCING PROGRAM 
SEC. 401. AUTHORIZATION OF APPROPRIATIONS. 
There is authorized to be appropriated to the Presi-
dent $10,000,000 for fiscal year 2017 for assistance under 
section 23 of the Arms Export Control Act (22 U.S.C. 
2763) (relating to Foreign Military Financing program) 
for the Asia-Pacific region in accordance with the provi-
sions of this Act. 
TITLE V—MARITIME LAW 
ENFORCEMENT INITIATIVE 
SEC. 501. AUTHORIZATION OF APPROPRIATIONS. 
There is authorized to be appropriated to the Sec-
retary of State $10,000,000 for fiscal year 2017 for Inter-
national Narcotics Control and Law Enforcement assist-
ance for the support of the Southeast Asia Maritime Law 
Enforcement Initiative, including the development of inte-
grated, regional capabilities to better understand the sur-
rounding maritime space by maritime law enforcement au-
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thorities in the following countries and among the fol-
lowing countries on a regional basis: 
(1) The Philippines. 
(2) Malaysia. 
(3) Vietnam. 
(4) Indonesia. 
TITLE VI—TRANSFER OF EXCESS 
DEFENSE ARTICLES 
SEC. 601. PRIORITY FOR TRANSFER OF EXCESS DEFENSE 
ARTICLES. 
Section 516(c)(2) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2321j(c)(2)) is amended— 
(1) by striking ‘‘Notwithstanding’’ and insert-
ing ‘‘(A) Notwithstanding’’; 
(2) by striking ‘‘and to the Philippines’’ and in-
serting ‘‘to the Philippines, and, subject to subpara-
graph (B), to Malaysia, Vietnam, and Indonesia’’; 
and 
(3) by adding at the end the following: 
‘‘(B) The authority of subparagraph (A) to pro-
vide priority to the delivery of excess defense articles 
under this section to Malaysia, Vietnam, and Indo-
nesia shall apply only with respect to excess defense 
articles used for maritime security-related missions, 
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including excess defense articles for purposes of pa-
trols, intelligence, surveillance, and reconnaissance.’’. 
SEC. 602. SENSE OF CONGRESS ON TRANSFER OF NAVAL 
VESSEL. 
It is the sense of Congress that the maritime security 
of United States allies and partners bordering the South 
China Sea would be enhanced by the transfer of an Oliver 
Hazard Perry class frigate to an appropriate country in 
the region. Congress urges the Secretary of State to begin 
the process of consulting with Congress on the transfer 
of such a vessel as soon as possible. 
TITLE VII—EQUALITY OF TREAT-
MENT IN ARMS SALES FOR 
TAIWAN 
SEC. 701. EQUALITY OF TREATMENT IN ARMS SALES FOR 
TAIWAN. 
(a) IN GENERAL.—The President shall ensure that 
the United States Government treats every proposed arms 
sales for Taiwan with the same timelines, processes, and 
procedures, including formal notification to Congress 
under the Arms Export Control Act (22 U.S.C. 2751 et 
seq.), accorded to proposed arms transfers for all other 
countries. 
(b) REPORT.—Not later than 1 year after the date 
of the enactment of this Act, and every 5 years thereafter, 
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the Secretary of State shall review and report to the ap-
propriate committees of Congress on the compliance of the 
United States Government with the requirements of sub-
section (a). 
TITLE VIII—REPORTS 
SEC. 801. REPORT ON PLANS FOR THE MAINTENANCE OF 
RIGHTS, FREEDOMS, AND LAWFUL USES OF 
THE SEAS AND AIRSPACE IN THE ASIA-PA-
CIFIC MARITIME DOMAINS. 
Not later than 180 days after the date of the enact-
ment of this Act, and annually thereafter, the Secretary 
of State shall submit to the appropriate committees of 
Congress a report in classified form setting forth a plan, 
for each 1-year and 5-year periods beginning on the date 
of such report, that details all freedom of navigation asser-
tions, shows of force, bilateral and multilateral military 
exercises, port calls, and training intended to enhance the 
maritime capabilities, respond to emerging threats, and 
maintain freedom of operations, consistent with inter-
national law, in international waters and airspace in the 
Asia-Pacific maritime domains. 
SEC. 802. REPORT ON PLANS FOR PARTNER CAPACITY 
BUILDING. 
Not later than 180 days after the date of the enact-
ment of this Act, the Secretary of State shall submit to 
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