Parties,’’ is leading ‘‘disablement activities’’ and 
‘‘provid[ing] the funding for those activities’’; and 
(3) the Government of North Korea has agreed to 
the participation of the International Atomic Energy 
Agency in the monitoring and verification of the 
shutdown and sealing of the Yongbyon nuclear facil-
ity. 
(b) STATE SPONSOR OF TERRORISM DEFINED.—In 
this section, the term ‘‘state sponsor of terrorism’’ means 
a country the government of which the Secretary of State 
has determined, for purposes of section 6(j) of the Export 
Administration Act of 1979 (as continued in effect pursu-
ant to the International Emergency Economic Powers Act), 
section 40 of the Arms Export Control Act, section 620A 
of the Foreign Assistance Act of 1961, or any other provi-
sion of law, is a government that has repeatedly provided 
support for acts of international terrorism. 
SEC. 307. REPORT ON VERIFICATION MEASURES RELATING 
TO NORTH KOREA’S NUCLEAR PROGRAMS. 
(a) IN GENERAL.—Not later than 15 days after the 
date of enactment of this Act, the Secretary of State shall 
submit to the appropriate congressional committees a report 
on verification measures relating to North Korea’s nuclear 
programs under the Six-Party Talks Agreement of Feb-
ruary 13, 2007, with specific focus on how such verification 
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measures are defined under the Six-Party Talks Agreement 
and understood by the United States Government. 
(b) MATTERS TO BE INCLUDED.—The report required 
under subsection (a) shall include, among other elements, 
a detailed description of— 
(1) the methods to be utilized to confirm that 
North Korea has ‘‘provided a complete and correct 
declaration of all of its nuclear programs’’; 
(2) the specific actions to be taken in North 
Korea and elsewhere to ensure a high and ongoing 
level of confidence that North Korea has fully met the 
terms of the Six-Party Talks Agreement relating to its 
nuclear programs; 
(3) any formal or informal agreement with 
North Korea regarding verification measures relating 
to North Korea’s nuclear programs under the Six- 
Party Talks Agreement; and 
(4) any disagreement expressed by North Korea 
regarding verification measures relating to North Ko-
rea’s nuclear programs under the Six-Party Talks 
Agreement. 
(c) FORM.—The report required under subsection (a) 
shall be submitted in unclassified form, but may include 
a classified annex. 
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SEC. 308. DEFINITIONS. 
In this title— 
(1) the term ‘‘appropriate congressional commit-
tees’’ means— 
(A) the Committee on Foreign Affairs and 
the Committee on Appropriations of the House of 
Representatives; and 
(B) the Committee on Foreign Relations 
and the Committee on Appropriations of the 
Senate; 
(2) the terms ‘‘non-nuclear-weapon state’’, ‘‘de-
sign information’’, and ‘‘component’’ have the mean-
ings given such terms in section 102 of the Arms Ex-
port Control Act (22 U.S.C. 2799aa–1); and 
(3) the term ‘‘Six-Party Talks Agreement of Feb-
ruary 13, 2007’’ or ‘‘Six-Party Talks Agreement’’ 
means the action plan released on February 13, 2007, 
of the Third Session of the Fifth Round of the Six- 
Party Talks held in Beijing among the People’s Re-
public of China, the Democratic People’s Republic of 
Korea (North Korea), Japan, the Republic of Korea 
(South Korea), the Russian Federation, and the 
United States relating to the denuclearization of the 
Korean Peninsula, normalization of relations between 
the North Korea and the United States, normalization 
of relations between North Korea and Japan, economy 
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and energy cooperation, and matters relating to the 
Northeast Asia Peace and Security Mechanism. 
TITLE IV—MISCELLANEOUS 
PROVISIONS 
SEC. 401. AUTHORITY TO BUILD THE CAPACITY OF FOREIGN 
MILITARY FORCES. 
(a) AUTHORITY.—The Secretary of State is authorized 
to conduct a program to respond to contingencies in foreign 
countries or regions by providing training, procurement, 
and capacity-building of a foreign country’s national mili-
tary forces and dedicated counter-terrorism forces in order 
for that country to— 
(1) conduct counterterrorist operations; or 
(2) participate in or support military and sta-
bility operations in which the United States is a par-
ticipant. 
(b) TYPES OF CAPACITY-BUILDING.—The program au-
thorized under subsection (a) may include the provision of 
equipment, supplies, and training. 
(c) LIMITATIONS.— 
(1) ANNUAL
FUNDING
LIMITATION.—The Sec-
retary of State may use up to $25,000,000 of funds 
available under the Foreign Military Financing pro-
gram for each of the fiscal years 2009 and 2010 to 
conduct the program authorized under subsection (a). 
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(2) ASSISTANCE
OTHERWISE
PROHIBITED
BY 
LAW.—The Secretary of State may not use the au-
thority in subsection (a) to provide any type of assist-
ance described in subsection (b) that is otherwise pro-
hibited by any provision of law. 
(3) LIMITATION ON ELIGIBLE COUNTRIES.—The 
Secretary of State may not use the authority in sub-
section (a) to provide assistance described in sub-
section (b) to any foreign country that is otherwise 
prohibited from receiving such type of assistance 
under any other provision of law. 
(d) FORMULATION AND EXECUTION OF ACTIVITIES.— 
The Secretary of State is authorized to coordinate with the 
head of any other appropriate department or agency in the 
formulation and execution of the program authorized under 
subsection (a). 
(e) CONGRESSIONAL NOTIFICATION.— 
(1) ACTIVITIES IN A COUNTRY.—Not less than 15 
days before obligating funds for activities in any 
country under the program authorized under sub-
section (a), the Secretary of State shall submit to the 
congressional committees specified in paragraph (3) a 
notice of the following: 
(A) The country whose capacity to engage 
in activities in subsection (a) will be assisted. 
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(B) The budget, implementation timeline 
with milestones, and completion date for com-
pleting the activities. 
(2) SPECIFIED CONGRESSIONAL COMMITTEES.— 
The congressional committees specified in this para-
graph are the following: 
(A) The Committee on Foreign Affairs and 
the Committee on Appropriations of the House of 
Representatives. 
(B) The Committee on Foreign Relations 
and the Committee on Appropriations of the 
Senate. 
SEC. 402. MAINTENANCE OF EUROPEAN UNION ARMS EM-
BARGO AGAINST CHINA. 
(a) FINDINGS.—Congress makes the following findings: 
(1) Congress has previously expressed its strong 
concerns in House Resolution 57 of February 2, 2005, 
and Senate Resolution 91 of March 17, 2005, with the 
transfer of armaments and related technology to the 
People’s Republic of China by member states of the 
European Union, which increased eightfold from 2001 
to 2003, and with plans to terminate in the near fu-
ture the arms embargo they imposed in 1989 fol-
lowing the Tiananmen Square massacre. 
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safety of United States Armed Forces whose presence 
in the region has been a decisive factor in ensuring 
peace and prosperity since the end of World War II. 
(5) A more intensive dialogue with Europe on 
this matter will clarify for United States’ friends and 
allies in Europe how their ‘‘non-lethal’’ arms trans-
fers improve the force projection of the People’s Re-
public of China, are far from benign, and enhance the 
prospects for the threat or use of force in resolving the 
status of Taiwan. 
(6) This dialogue may result in an important 
new consensus between the United States and its Eu-
ropean partners on the need for coordinated policies 
that encourage the development of democracy in the 
People’s Republic of China and which discourage, not 
assist, China’s unjustified military buildup and pur-
suit of weapons that threaten its neighbors. 
(7) However, the statement by the President of 
France in Beijing in November 2007 that the Euro-
pean Union arms embargo should be lifted is trou-
bling, especially since France will assume the six- 
month presidency of the European Union in July 
2008. 
(8) There continues to be wide-spread concerns 
regarding the lack of any significant progress by the 
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Government of the People’s Republic of China in re-
specting the civil and political rights of the Chinese 
people. 
(b) STATEMENT OF POLICY.—It shall be the policy of 
the United States Government to oppose any diminution 
or termination of the arms embargo that was established 
by the Declaration of the European Council of June 26, 
1989, and to take whatever diplomatic and other measures 
that are appropriate to convince the Member States of the 
European Union, individually and collectively, to continue 
to observe this embargo in principle and in practice. Appro-
priate measures should include prohibitions on entering 
into defense procurement contracts or defense-related re-
search and development arrangements with European 
Union Member States that do not observe such an embargo 
in practice. 
(c) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, and every six months thereafter 
until December 31, 2010, the President shall transmit to 
the Committee on Foreign Affairs and Committee on Armed 
Services of the House of Representatives and the Committee 
on Foreign Relations and the Committee on Armed Services 
of the Senate a report on all efforts and activities of the 
United States Government to ensure the success of the policy 
declared in subsection (b). 
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SEC. 403. REIMBURSEMENT OF SALARIES OF MEMBERS OF 
THE RESERVE COMPONENTS IN SUPPORT OF 
SECURITY COOPERATION MISSIONS. 
Section 632(d) of the Foreign Assistance Act of 1961 
(22 U.S.C. 2392(d)) is amended— 
(1) by striking ‘‘(d) Except as otherwise pro-
vided’’ and inserting ‘‘(d)(1) Except as otherwise pro-
vided’’; and 
(2) by adding at the end the following: 
‘‘(2) Notwithstanding provisions concerning the exclu-
sion of the costs of salaries of members of the Armed Forces 
in section 503(a) of this Act and paragraph (1) of this sub-
section, the full cost of salaries of members of the reserve 
components of the Armed Forces (specified in section 10101 
of title 10, United States Code) may, during each of fiscal 
years 2009 and 2010, be included in calculating pricing 
or value for reimbursement charged under section 503(a) 
of this Act and paragraph (1) of this subsection, respec-
tively.’’. 
SEC. 404. FOREIGN MILITARY SALES STOCKPILE FUND. 
(a) IN GENERAL.—Subsection (a) of section 51 of the 
Arms Export Control Act (22 U.S.C. 2795) is amended— 
(1) in paragraph (1), by striking ‘‘Special De-
fense Acquisition Fund’’ and inserting ‘‘Foreign Mili-
tary Sales Stockpile Fund’’; and 
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(2) in paragraph (4), by inserting ‘‘building the 
capacity of recipient countries and’’ before ‘‘narcotics 
control purposes’’. 
(b) CONTENTS OF FUND.—Subsection (b) of such sec-
tion is amended— 
(1) in paragraph (2), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (3), by inserting ‘‘and’’ at the 
end; and 
(3) by inserting after paragraph (3) the fol-
lowing: 
‘‘(4) collections from leases made pursuant to 
section 61 of this Act,’’. 
(c) AVAILABILITY.—Subsection (c)(2) of such section is 
amended to read as follows: 
‘‘(2) Amounts credited to the Fund under subsection 
(b) shall remain available until expended.’’. 
(d) CONFORMING AMENDMENTS.—(1) The heading of 
such section is amended by striking ‘‘SPECIAL DEFENSE 
ACQUISITION FUND’’ and inserting ‘‘FOREIGN MILITARY 
SALES STOCKPILE FUND’’. 
(2) The heading of chapter 5 of the Arms Export Con-
trol Act is amended by striking ‘‘SPECIAL DEFENSE 
ACQUISITION FUND’’ and inserting ‘‘FOREIGN 
MILITARY SALES STOCKPILE FUND’’. 
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SEC. 405. CONGRESSIONAL NOTIFICATION REQUIREMENTS 
UNDER THE ARMS EXPORT CONTROL ACT. 
The Arms Export Control Act (22 U.S.C. 2751 et seq.) 
is amended— 
(1) by striking ‘‘Speaker of the House of Rep-
resentatives and the Committee on Foreign Relations 
of the Senate’’ each place it appears and inserting 
‘‘Committee on Foreign Affairs of the House of Rep-
resentatives and the Committee on Foreign Relations 
of the Senate’’; 
(2) by striking ‘‘Speaker of the House of Rep-
resentatives and the Chairman of the Committee on 
Foreign Relations of the Senate’’ and ‘‘Speaker of the 
House of Representatives and the chairman of the 
Committee on Foreign Relations of the Senate’’ each 
place they appear and inserting ‘‘Chairman of the 
Committee on Foreign Affairs of the House of Rep-
resentatives and the Chairman of the Committee on 
Foreign Relations of the Senate’’; 
(3) by striking ‘‘Speaker of the House of Rep-
resentatives and to the chairman of the Committee on 
Foreign Relations’’ each place it appears and insert-
ing ‘‘Chairman of the Committee on Foreign Affairs 
of the House of Representatives and to the Chairman 
of the Committee on Foreign Relations’’; 
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(4) by striking ‘‘Speaker of the House of Rep-
resentatives and the Committees on Armed Services 
and Foreign Relations of the Senate’’ each place it 
appears and inserting ‘‘Committees on Foreign Af-
fairs and Armed Services of the House of Representa-
tives and the Committees on Foreign Relations and 
Armed Services of the Senate’’; 
(5) by striking ‘‘Speaker of the House of Rep-
resentatives, the chairman of the Committee on For-
eign Relations of the Senate, and the chairman of the 
Committee on Armed Services of the Senate’’ each 
place it appears and inserting ‘‘Chairmen of the 
Committees on Foreign Affairs and Armed Services of 
the House of Representatives and the Chairmen of the 
Committees on Foreign Relations and Armed Services 
of the Senate’’; and 
(6) by striking ‘‘Speaker of the House of Rep-
resentatives, and to the chairman of the Committee on 
Foreign Relations’’ each place it appears and insert-
ing ‘‘Chairman of the Committee on Foreign Affairs 
of the House of Representatives and to the Chairman 
of the Committee on Foreign Relations’’ each place it 
appears. 
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SEC. 406. SENSE OF CONGRESS. 
It is the sense of Congress that the United States should 
not provide security assistance or arms exports to nations 
contributing to massive, widespread, and systematic viola-
tions of human rights or acts of genocide, particularly with 
respect to Darfur, Sudan. 
TITLE V—AUTHORITY TO 
TRANSFER NAVAL VESSELS 
SEC. 501. AUTHORITY TO TRANSFER NAVAL VESSELS TO 
CERTAIN FOREIGN RECIPIENTS. 
(a) TRANSFERS BY GRANT.—The President is author-
ized to transfer vessels to foreign countries on a grant basis 
under section 516 of the Foreign Assistance Act of 1961 (22 
U.S.C. 2321j), as follows: 
(1) PAKISTAN.—To the Government of Pakistan, 
the OLIVER HAZARD PERRY class guided missile 
frigate MCINERNEY (FFG–8). 
(2) GREECE.—To the Government of Greece, the 
OSPREY class minehunter coastal ships OSPREY 
(MHC–51) and ROBIN (MHC–54). 
(3) CHILE.—To the Government of Chile, the 
KAISER class oiler ANDREW J. HIGGINS (AO– 
190). 
(4) PERU.—To the Government of Peru, the 
NEWPORT class amphibious tank landing ships 
FRESNO (LST–1182) and RACINE (LST–1191). 
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(b) GRANTS NOT COUNTED IN ANNUAL TOTAL OF 
TRANSFERRED EXCESS DEFENSE ARTICLES.—The value of 
a vessel transferred to a recipient on a grant basis pursuant 
to authority provided by subsection (a) shall not be counted 
against the aggregate value of excess defense articles trans-
ferred in any fiscal year under section 516(g) of the Foreign 
Assistance Act of 1961. 
(c) COSTS OF TRANSFERS.—Any expense incurred by 
the United States in connection with a transfer authorized 
by this section shall be charged to the recipient. 
(d) REPAIR AND REFURBISHMENT IN UNITED STATES 
SHIPYARDS.—To the maximum extent practicable, the 
President shall require, as a condition of the transfer of a 
vessel under this section, that the recipient to which the ves-
sel is transferred have such repair or refurbishment of the 
vessel as is needed before the vessel joins the naval forces 
of the recipient performed at a shipyard located in the 
United States, including a United States Navy shipyard. 
(e) EXPIRATION OF AUTHORITY.—The authority to 
transfer a vessel under this section shall expire at the end 
of the 2-year period beginning on the date of the enactment 
of this Act. 
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Union Calendar No. 391 
110TH CONGRESS 
2D SESSION 
H. R. 5916 
[Report No. 110–626] 
A BILL 
To reform the administration of the Arms Export 
Control Act, and for other purposes. 
MAY 12, 2008 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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