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Assistance Act of 1961 (22 U.S.C. 2321j; relating to trans-
fers of excess defense articles).
(e) TAIWAN.—The Secretary of the Navy may transfer
to the Taipei Economic and Cultural Representative Office
in the United States (which is the Taiwan instrumentality
designated pursuant to section 10(a) of the Taiwan Rela-
tions Act) the following:
(1) The ‘‘KNOX’’ class frigates AYLWIN (FF
1081), PHARRIS (FF 1094), and VALDEZ (FF
1096). Such transfers shall be on a sales basis under
section 21 of the Arms Export Control Act (22 U.S.C.
2761).
(2) The ‘‘NEWPORT’’ class tank landing ship
NEWPORT (LST 1179). Such transfer shall be on a
lease basis under section 61 of the Arms Export Con-
trol Act (22 U.S.C. 2796).
(f) THAILAND.—The Secretary of the Navy may trans-
fer to the Government of Thailand the ‘‘KNOX’’ class frigate
OUELLET (FF 1077). Such transfer shall be on a sales
basis under section 21 of the Arms Export Control Act (22
U.S.C. 2761).
(g) COSTS OF TRANSFER.—Any expense of the United
States in connection with a transfer authorized by this sec-
tion shall be charged to the recipient.
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(h) REPAIR AND REFURBISHMENT OF VESSELS.—The
Secretary of the Navy shall require, to the maximum extent
possible, as a condition of a transfer of a vessel under this
section, that the country to which the vessel is transferred
have such repair or refurbishment of the vessel as is needed,
before the vessel joins the naval forces of that country, per-
formed at a shipyard located in the United States, includ-
ing a United States Navy shipyard.
(i) EXPIRATION OF AUTHORITY.—Any authority for
transfer granted by this section shall expire at the end of
the 2-year period beginning on the date of the enactment
of this Act.
SEC. 1022. TRANSFER OF CERTAIN OBSOLETE TUGBOATS
OF THE NAVY.
(a) REQUIREMENT TO TRANSFER VESSELS.—The Sec-
retary of the Navy shall transfer the six obsolete tugboats
of the Navy specified in subsection (b) to the Northeast Wis-
consin Railroad Transportation Commission, an instru-
mentality of the State of Wisconsin, if the Secretary deter-
mines that the tugboats are not needed for transfer, dona-
tion, or other disposal under title II of the Federal Property
and Administrative Services Act of 1949 (40 U.S.C. 481
et seq.). A transfer made under the preceding sentence shall
be made without reimbursement to the United States.
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(b) VESSELS COVERED.—The requirement in sub-
section (a) applies to the six decommissioned Cherokee class
tugboats, listed as of the date of the enactment of this Act
as being surplus to the Navy, that are designated as ATF–
105, ATF–110, ATF–149, ATF–158, ATF–159, and ATF–
160.
(c) CONDITION RELATING TO ENVIRONMENTAL COM-
PLIANCE.—The Secretary shall require as a condition of the
transfer of a vessel under subsection (a) that use of the vessel
by the Commission not commence until the terms of any
necessary environmental compliance letter or agreement
with respect to that vessel have been complied with.
(d) ADDITIONAL TERMS AND CONDITIONS.—The Sec-
retary may require such additional terms and conditions
(including a requirement that the transfer be at no cost to
the Government) in connection with the transfers required
by subsection (a) as the Secretary considers appropriate.
SEC. 1023. REPEAL OF REQUIREMENT FOR CONTINUOUS AP-
PLICABILITY OF CONTRACTS FOR PHASED
MAINTENANCE OF AE CLASS SHIPS.
Section 1016 of the National Defense Authorization
Act for Fiscal Year 1996 (Public Law 104–106; 110 Stat.
425) is repealed.
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SEC. 1024. CONTRACT OPTIONS FOR LMSR VESSELS.
(a) FINDINGS.—Congress reaffirms the findings set
forth in section 1013(a) of the National Defense Authoriza-
tion Act for Fiscal Year 1996 (Public Law 104–106; 110
Stat. 422), and makes the following modifications and sup-
plemental findings:
(1) Since the findings set forth in section
1013(a) of such Act were originally formulated, the
Secretary of the Navy has exercised options for the ac-
quisition of two of the six additional large, medium-
speed, roll-on/roll-off (LMSR) vessels that may be ac-
quired by exercise of options provided for under con-
tracts covering the acquisition of a total of 17 LMSR
vessels.
(2) Therefore, under those contracts, the Sec-
retary has placed orders for the acquisition of 13
LMSR vessels and has remaining options for the ac-
quisition of four more LMSR vessels, all of which
would be new construction vessels.
(3) The remaining options allow the Secretary to
place orders for one vessel to be constructed at each
of two shipyards for award before December 31, 1996,
and December 31, 1997, respectively.
(b) SENSE OF CONGRESS.—Congress also reaffirms its
declaration of the sense of Congress, as set forth in section
1013(b) of Public Law 104–106, that the Secretary of the
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Navy should plan for, and budget to provide for, the acqui-
sition as soon as possible of a total of 19 large, medium-
speed, roll-on/roll-off (LMSR) vessels (the number deter-
mined to be required in the report entitled ‘‘Mobility Re-
quirements Study Bottom-Up Review Update’’, submitted
by the Secretary of Defense to Congress in April 1995),
rather than only 17 such vessels (which is the number of
vessels under contract as of April 1996).
(c) ADDITIONAL NEW CONSTRUCTION CONTRACT OP-
TION.—The Secretary of the Navy should negotiate with
each of the two shipyards holding new construction con-
tracts referred to in subsection (a)(1) (Department of the
Navy 
contracts 
numbered 
N00024–93–C–2203 
and
N00024–93–C–2205) for an option under each such con-
tract for construction of one additional such LMSR vessel,
with such option to be available to the Secretary for exercise
not earlier than fiscal year 1998, subject to the availability
of funds authorized and appropriated for such purpose.
Nothing in this subsection shall be construed to preclude
the Secretary of the Navy from competing the award of the
two options between the two shipyards holding new con-
struction contracts referred to in subsection (a)(1).
(d) REPORT.—The Secretary of the Navy shall submit
to the congressional defense committees, by March 31, 1997,
a report stating the intentions of the Secretary regarding
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the acquisition of options for the construction of two addi-
tional LMSR vessels as described in subsection (c).
(e) REPEAL
OF SUPERSEDED PROVISION.—Section
1013 of the National Defense Authorization Act for Fiscal
Year 1996 (Public Law 104–106; 110 Stat 422) is amended
by striking out subsection (c).
SEC. 1025. SENSE OF THE SENATE CONCERNING USS LCS
102 (LSSL 102).
It is the sense of the Senate that the Secretary of De-
fense should use existing authorities in law to seek the expe-
ditious return, upon completion of service, of the former
USS LCS 102 (LSSL 102) from the Government of Thai-
land in order for the ship to be transferred to the United
States Shipbuilding Museum in Quincy, Massachusetts.
Subtitle C—Counter-Drug Activities
SEC. 1031. AUTHORITY TO PROVIDE ADDITIONAL SUPPORT
FOR COUNTER-DRUG ACTIVITIES OF MEXICO.
(a) AUTHORITY TO PROVIDE ADDITIONAL SUPPORT.—
Subject to subsections (e) and (f), the Secretary of Defense
may, during fiscal year 1997, provide the Government of
Mexico the support described in subsection (b) for the
counter-drug activities of the Government of Mexico. Such
support shall be in addition to support provided the Gov-
ernment of Mexico under any other provision of law.