Union Calendar No. 253
104TH CONGRESS
2D SESSION
H. R. 3121
[Report No. 104–519, Part I]
A BILL
To amend the Foreign Assistance Act of 1961 and
the Arms Export Control Act to make improve-
ments to certain defense and security assistance
provisions under those Acts, to authorize the
transfer of naval vessels to certain foreign coun-
tries, and for other purposes.
APRIL 16, 1996
Referral to the Committee on Rules extended for a period
ending not later than April 16, 1996
APRIL 16, 1996
Committee on Rules discharged; committed to the Com-
mittee of the Whole House on the State of the Union,
and ordered to be printed
IB
Union Calendar No. 253
104TH CONGRESS
2D SESSION
H. R. 3121
[Report No. 104–519, Part I]
To amend the Foreign Assistance Act of 1961 and the Arms Export Control
Act to make improvements to certain defense and security assistance
provisions under those Acts, to authorize the transfer of naval vessels
to certain foreign countries, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 20, 1996
Mr. GILMAN (for himself and Mr. HAMILTON) introduced the following bill;
which was referred to the Committee on International Relations, and in
addition to the Committee on Rules, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
MARCH 21, 1996
Reported from the Committee on International Relations
APRIL 16, 1996
Referral to the Committee on Rules extended for a period ending not later
than April 16, 1996
APRIL 16, 1996
Committee on Rules discharged; committed to the Committee of the Whole
House on the State of the Union and ordered to be printed
A BILL
To amend the Foreign Assistance Act of 1961 and the Arms
Export Control Act to make improvements to certain
defense and security assistance provisions under those
Acts, to authorize the transfer of naval vessels to certain
foreign countries, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Table of contents.
TITLE I—DEFENSE AND SECURITY ASSISTANCE
CHAPTER 1—MILITARY AND RELATED ASSISTANCE
Sec. 101. Terms of loans under the Foreign Military Financing program.
Sec. 102. Additional requirements under the Foreign Military Financing pro-
gram.
Sec. 103. Drawdown special authorities.
Sec. 104. Transfer of excess defense articles.
Sec. 105. Excess defense articles for certain European countries.
CHAPTER 2—INTERNATIONAL MILITARY EDUCATION AND TRAINING
Sec. 111. Assistance for Indonesia.
Sec. 112. Additional requirements.
CHAPTER 3—ANTITERRORISM ASSISTANCE
Sec. 121. Antiterrorism training assistance.
Sec. 122. Research and development expenses.
CHAPTER 4—NARCOTICS CONTROL ASSISTANCE
Sec. 131. Additional requirements.
Sec. 132. Notification requirement.
Sec. 133. Waiver of restrictions for narcotics-related economic assistance.
CHAPTER 5—OTHER PROVISIONS
Sec. 141. Standardization of congressional review procedures for arms trans-
fers.
Sec. 142. Standardization of third country transfers of defense articles.
Sec. 143. Increased standardization, rationalization, and interoperability of as-
sistance and sales programs.
Sec. 144. Definition of significant military equipment.
Sec. 145. Elimination of annual reporting requirement relating to the Special
Defense Acquisition Fund.
Sec. 146. Cost of leased defense articles that have been lost or destroyed.
Sec. 147. Designation of major non-NATO allies.
Sec. 148. Certification thresholds.
Sec. 149. Depleted uranium ammunition.
Sec. 150. End-use monitoring of defense articles and defense services.
Sec. 151. Brokering activities relating to commercial sales of defense articles
and services.
Sec. 152. Return and exchanges of defense articles previously transferred pur-
suant to the arms export control act.
Sec. 153. National security interest determination to waive reimbursement of
depreciation for leased defense articles.
TITLE II—TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN
COUNTRIES
Sec. 201. Authority to transfer naval vessels.
Sec. 202. Costs of transfers.
Sec. 203. Expiration of authority.
Sec. 204. Repair and refurbishment of vessels in United States shipyards.
TITLE I—DEFENSE AND
SECURITY ASSISTANCE
CHAPTER 1—MILITARY AND RELATED
ASSISTANCE
SEC. 101. TERMS OF LOANS UNDER THE FOREIGN MILI-
TARY FINANCING PROGRAM.
Section 31(c) of the Arms Export Control Act (22
U.S.C. 2771(c)) is amended to read as follows:
‘‘(c) Loans available under section 23 shall be pro-
vided at rates of interest that are not less than the current
average market yield on outstanding marketable obliga-
tions of the United States of comparable maturities.’’.
SEC. 102. ADDITIONAL REQUIREMENTS UNDER THE FOR-
EIGN MILITARY FINANCING PROGRAM.
(a) FOREIGN MILITARY SALES.—Section 21(h) of the
Arms Export Control Act (22 U.S.C. 2761(h)) is amend-
ed—
(1) in paragraph (1)(A), by inserting ‘‘or the
Government of Israel’’ after ‘‘North Atlantic Treaty
Organization’’; and
(2) in paragraph (2), by striking ‘‘or to any
member government of that Organization if that Or-
ganization or member government’’ and inserting ‘‘,
any member government of that Organization, or the
Government of Israel, if the Organization, member
government, or Government of Israel, as the case
may be,’’.
(b) AUDIT OF CERTAIN PRIVATE FIRMS.—Section 23
of such Act (22 U.S.C. 2763) is amended by adding at
the end the following new subsection:
‘‘(f) For each fiscal year, the Secretary of Defense,
as requested by the Director of the Defense Security As-
sistance 
Agency, 
shall 
conduct 
audits 
on 
a
nonreimbursable basis of private firms that have entered
into contracts with foreign governments under which de-
fense articles, defense services, or design and construction
services are to be procured by such firms for such govern-
ments from financing under this section.’’.
(c) NOTIFICATION REQUIREMENT WITH RESPECT TO
CASH FLOW FINANCING.—Section 23 of such Act (22
U.S.C. 2763), as amended by this Act, is further amended
by adding at the end the following new subsection:
‘‘(g)(1) For each country and international organiza-
tion that has been approved for cash flow financing under
this section, any letter of offer and acceptance or other
purchase agreement, or any amendment thereto, for a pro-
curement of defense articles, defense services, or design
and construction services in excess of $100,000,000 that
is to be financed in whole or in part with funds made avail-
able under this Act or the Foreign Assistance Act of 1961
shall be submitted to the congressional committees speci-
fied in section 634A(a) of the Foreign Assistance Act of
1961 in accordance with the procedures applicable to
reprogramming notifications under that section.
‘‘(2) For purposes of this subsection, the term ‘cash
flow financing’ has the meaning given such term in the
second subsection (d) of section 25.’’.
(d) LIMITATIONS ON USE OF FUNDS FOR DIRECT
COMMERCIAL CONTRACTS.—Section 23 of such Act (22
U.S.C. 2763), as amended by this Act, is further amended
by adding at the end the following new subsection:
‘‘(h) Of the amounts made available for a fiscal year
to carry out this section, not more than $100,000,000 for
such fiscal year may be made available for countries other
than Israel and Egypt for the purpose of financing the
procurement of defense articles, defense services, and de-
sign and construction services that are not sold by the
United States Government under this Act.’’.
(e) ANNUAL ESTIMATE
AND JUSTIFICATION
FOR
SALES PROGRAM.—Section 25 of such Act (22 U.S.C.
2765) is amended—
(1) by striking the ‘‘and’’ at the end of para-
graph (11);
(2) by redesignating paragraph (12) as para-
graph (13); and
(3) by inserting after paragraph (11) the fol-
lowing new paragraph:
‘‘(12)(A) a detailed accounting of all articles,
services, credits, guarantees, or any other form of
assistance furnished by the United States to each
country and international organization, including
payments to the United Nations, during the preced-
ing fiscal year for the detection and clearance of
landmines, including activities relating to the fur-
nishing of education, training, and technical assist-
ance for the detection and clearance of landmines;
and
‘‘(B) for each provision of law making funds
available or authorizing appropriations for demining
activities described in subparagraph (A), an analysis
and description of the objectives and activities un-
dertaken during the preceding fiscal year, including
the number of personnel involved in performing such
activities; and’’.
SEC. 103. DRAWDOWN SPECIAL AUTHORITIES.
(a) UNFORESEEN EMERGENCY DRAWDOWN.—Sec-
tion 506(a)(1) of the Foreign Assistance Act of 1961 (22
U.S.C. 2318(a)(1)) is amended by striking ‘‘$75,000,000’’
and inserting ‘‘$100,000,000’’.
(b) ADDITIONAL DRAWDOWN.—Section 506 of such
Act (22 U.S.C. 2318) is amended—
(1) in subsection (a)(2)(A), by striking ‘‘defense
articles from the stocks’’ and all that follows and in-
serting the following: ‘‘articles and services from the
inventory and resources of any agency of the United
States Government and military education and
training from the Department of Defense, the Presi-
dent may direct the drawdown of such articles, serv-
ices, and military education and training—
‘‘(i) for the purposes and under the au-
thorities of—
‘‘(I) chapter 8 of part I (relating to
international narcotics control assistance);
‘‘(II) chapter 9 of part I (relating to
international disaster assistance); or
‘‘(III) the Migration and Refugee As-
sistance Act of 1962; or
‘‘(ii) for the purpose of providing such arti-
cles, services, and military education and train-
ing to Vietnam, Cambodia, and Laos as the
President determines are necessary—
‘‘(I) to support cooperative efforts to
locate and repatriate members of the Unit-
ed States Armed Forces and civilians em-
ployed directly or indirectly by the United
States Government who remain unac-
counted for from the Vietnam War; and
‘‘(II) to ensure the safety of United
States Government personnel engaged in
such cooperative efforts and to support De-
partment of Defense-sponsored humani-
tarian projects associated with such ef-
forts.’’;
(2) 
in 
subsection 
(a)(2)(B), 
by 
striking
‘‘$75,000,000’’ and all that follows and inserting
‘‘$150,000,000 in any fiscal year of such articles,
services, and military education and training may be
provided pursuant to subparagraph (A) of this para-
graph—
‘‘(i) not more than $75,000,000 of which
may be provided from the drawdown from the
inventory and resources of the Department of
Defense;
‘‘(ii) not more than $75,000,000 of which
may be provided pursuant to clause (i)(I) of
such subparagraph; and
‘‘(iii) not more than $15,000,000 of which
may be provided to Vietnam, Cambodia, and
Laos pursuant to clause (ii) of such subpara-
graph.’’; and
(3) in subsection (b)(1), by adding at the end
the following: ‘‘In the case of drawdowns authorized
by 
subclauses 
(I) 
and 
(III) 
of 
subsection
(a)(2)(A)(i), notifications shall be provided to those
committees at least 15 days in advance of the
drawdowns in accordance with the procedures appli-
cable to reprogramming notifications under section
634A.’’.
(c) NOTICE TO CONGRESS OF EXERCISE OF SPECIAL
AUTHORITIES.—Section 652 of such Act (22 U.S.C.
2411) is amended by striking ‘‘prior to the date’’ and in-
serting ‘‘before’’.
SEC. 104. TRANSFER OF EXCESS DEFENSE ARTICLES.
(a) IN GENERAL.—Section 516 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2321j) is amended to read
as follows:
‘‘SEC. 516. AUTHORITY TO TRANSFER EXCESS DEFENSE AR-
TICLES.
‘‘(a) AUTHORIZATION.—The President is authorized
to transfer excess defense articles under this section to
countries for which receipt of such articles was justified
pursuant to the annual congressional presentation docu-
ments for military assistance programs, or for programs
under chapter 8 of part I of this Act, submitted under
section 634 of this Act, or for which receipt of such arti-
cles was separately justified to the Congress, for the fiscal
year in which the transfer is authorized.
‘‘(b) LIMITATIONS ON TRANSFERS.—The President
may transfer excess defense articles under this section
only if—
‘‘(1) such articles are drawn from existing
stocks of the Department of Defense;
‘‘(2) funds available to the Department of De-
fense for the procurement of defense equipment are
not expended in connection with the transfer;
‘‘(3) the transfer of such articles will not have
an adverse impact on the military readiness of the
United States;
‘‘(4) with respect to a proposed transfer of such
articles on a grant basis, such a transfer is pref-
erable to a transfer on a sales basis, after taking
into account the potential proceeds from, and likeli-
hood of, such sales, and the comparative foreign pol-
icy benefits that may accrue to the United States as
the result of a transfer on either a grant or sales
basis;
‘‘(5) the President determines that the transfer
of such articles will not have an adverse impact on
the national technology and industrial base and, par-
ticularly, will not reduce the opportunities of entities
in the national technology and industrial base to sell
new or used equipment to the countries to which
such articles are transferred; and
‘‘(6) the transfer of such articles is consistent
with the policy framework for the Eastern Medi-
terranean established under section 620C of this
Act.
‘‘(c) TERMS OF TRANSFERS.—
‘‘(1) NO COST TO RECIPIENT COUNTRY.—Ex-
cess defense articles may be transferred under this
section without cost to the recipient country.
‘‘(2) PRIORITY.—Notwithstanding any other
provision of law, the delivery of excess defense arti-
cles under this section to member countries of the
North Atlantic Treaty Organization (NATO) on the
southern and southeastern flank of NATO and to
major non-NATO allies on such southern and south-
eastern flank shall be given priority to the maximum
extent feasible over the delivery of such excess de-
fense articles to other countries.
‘‘(d) WAIVER OF REQUIREMENT FOR REIMBURSE-
MENT OF DEPARTMENT OF DEFENSE EXPENSES.—Sec-
tion 632(d) shall not apply with respect to transfers of
excess defense articles (including transportation and relat-
ed costs) under this section.
‘‘(e) TRANSPORTATION AND RELATED COSTS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), funds available to the Department of De-
fense may not be expended for crating, packing,
handling, and transportation of excess defense arti-
cles transferred under the authority of this section.
‘‘(2) EXCEPTION.—The President may provide
for the transportation of excess defense articles with-
out charge to a country for the costs of such trans-
portation if—
‘‘(A) it is determined that it is in the na-
tional interest of the United States to do so;
‘‘(B) the recipient is a developing country
receiving less than $10,000,000 of assistance
under chapter 5 of part II of this Act (relating
to international military education and train-
ing) or section 23 of the Arms Export Control
Act (22 U.S.C. 2763; relating to the Foreign
Military Financing program) in the fiscal year
in which the transportation is provided;
‘‘(C) the total weight of the transfer does
not exceed 25,000 pounds; and
‘‘(D) such transportation is accomplished
on a space available basis.
‘‘(f) ADVANCE NOTIFICATION
TO CONGRESS
FOR
TRANSFER OF CERTAIN EXCESS DEFENSE ARTICLES.—
‘‘(1) IN
GENERAL.—The President may not
transfer excess defense articles that are significant
military equipment (as defined in section 47(9) of
the Arms Export Control Act) or excess defense arti-
cles valued (in terms of original acquisition cost) at
$7,000,000 or more, under this section or under the
Arms Export Control Act (22 U.S.C. 2751 et seq.)
‘‘(1) IN GENERAL.—The aggregate value of ex-
cess defense articles transferred to countries under
this section in any fiscal year may not exceed
$350,000,000.
‘‘(2) EFFECTIVE
DATE.—The limitation con-
tained in paragraph (1) shall apply only with respect
to fiscal years beginning after fiscal year 1996.
‘‘(h) 
CONGRESSIONAL
PRESENTATION
DOCU-
MENTS.—Documents described in subsection (a) justifying
the transfer of excess defense articles shall include an ex-
planation of the general purposes of providing excess de-
fense articles as well as a table which provides an aggre-
gate annual total of transfers of excess defense articles
in the preceding year by country in terms of offers and
actual deliveries and in terms of acquisition cost and cur-
rent value. Such table shall indicate whether such excess
defense articles were provided on a grant or sale basis.
‘‘(i) EXCESS COAST GUARD PROPERTY.—For pur-
poses of this section, the term ‘excess defense articles’
shall be deemed to include excess property of the Coast
Guard, and the term ‘Department of Defense’ shall be
deemed, with respect to such excess property, to include
the Coast Guard.’’.
(b) CONFORMING AMENDMENTS.—
(1) ARMS
EXPORT
CONTROL
ACT.—Section
21(k) of the Arms Export Control Act (22 U.S.C.
2761(k)) is amended by striking ‘‘the President
shall’’ and all that follows and inserting the follow-
ing: ‘‘the President shall determine that the sale of
such articles will not have an adverse impact on the
national technology and industrial base and, particu-
larly, will not reduce the opportunities of entities in
the national technology and industrial base to sell
new or used equipment to the countries to which
such articles are transferred.’’.
(2) REPEALS.—The following provisions of law
are hereby repealed:
(A) Section 502A of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2303).
(B) Sections 517 through 520 of the For-
eign Assistance Act of 1961 (22 U.S.C. 2321k
through 2321n).
(C) Section 31(d) of the Arms Export Con-
trol Act (22 U.S.C. 2771(d)).
SEC. 105. EXCESS DEFENSE ARTICLES FOR CERTAIN EURO-
PEAN COUNTRIES.
Notwithstanding section 516(e) of the Foreign As-
sistance Act of 1961, during each of the fiscal years 1996
and 1997, funds available to the Department of Defense
may be expended for crating, packing, handling, and
transportation of excess defense articles transferred under
the authority of section 516 of such Act to countries that
are eligible to participate in the Partnership for Peace and
that are eligible for assistance under the Support for East
European Democracy (SEED) Act of 1989.
CHAPTER 2—INTERNATIONAL MILITARY
EDUCATION AND TRAINING
SEC. 111. ASSISTANCE FOR INDONESIA.
Funds made available for fiscal years 1996 and 1997
to carry out chapter 5 of part II of the Foreign Assistance
Act of 1961 (22 U.S.C. 2347 et seq.) may be obligated
for Indonesia only for expanded military and education
training that meets the requirements of clauses (i)
through (iv) of the second sentence of section 541 of such
Act (22 U.S.C. 2347).
SEC. 112. ADDITIONAL REQUIREMENTS.
(a) GENERAL AUTHORITY.—Section 541 of the For-
eign Assistance Act of 1961 (22 U.S.C. 2347) is amended
in the second sentence in the matter preceding clause (i)
by inserting ‘‘and individuals who are not members of the
government’’ after ‘‘legislators’’.
(b) EXCHANGE TRAINING.—Section 544 of such Act
(22 U.S.C. 2347c) is amended—
(1) by striking ‘‘In carrying out this chapter’’
and inserting ‘‘(a) In carrying out this chapter’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) The President may provide for the attendance
of foreign military and civilian defense personnel at flight
training schools and programs (including test pilot
schools) in the United States without charge, and without
charge to funds available to carry out this chapter (not-
withstanding section 632(d) of this Act), if such attend-
ance is pursuant to an agreement providing for the ex-
change of students on a one-for-one basis each fiscal year
between those United States flight training schools and
programs (including test pilot schools) and comparable
flight training schools and programs of foreign coun-
tries.’’.
(c) ASSISTANCE FOR CERTAIN HIGH-INCOME FOR-
EIGN COUNTRIES.—
(1) AMENDMENT TO THE FOREIGN ASSISTANCE
ACT OF 1961.—Chapter 5 of part II of such Act (22
U.S.C. 2347 et seq.) is amended by adding at the
end the following new section:
‘‘SEC. 546. PROHIBITION ON GRANT ASSISTANCE FOR CER-
TAIN HIGH INCOME FOREIGN COUNTRIES.
‘‘(a) IN GENERAL.—None of the funds made avail-
able for a fiscal year for assistance under this chapter may
be made available for assistance on a grant basis for any
of the high-income foreign countries described in sub-
section (b) for military education and training of military
and related civilian personnel of such country.
‘‘(b) HIGH-INCOME
FOREIGN
COUNTRIES
DE-
SCRIBED.—The high-income foreign countries described in
this subsection are Austria, Finland, the Republic of
Korea, Singapore, and Spain.’’.
(2) AMENDMENT TO THE ARMS EXPORT CON-
TROL ACT.—Section 21(a)(1)(C) of the Arms Export
Control Act (22 U.S.C. 2761) is amended by insert-
ing ‘‘or to any high-income foreign country (as de-
scribed in that chapter)’’ after ‘‘Foreign Assistance
Act of 1961’’.
CHAPTER 3—ANTITERRORISM
ASSISTANCE
SEC. 121. ANTITERRORISM TRAINING ASSISTANCE.
(a) IN GENERAL.—Section 571 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2349aa) is amended by strik-
ing ‘‘Subject to the provisions of this chapter’’ and insert-
ing ‘‘Notwithstanding any other provision of law that re-
stricts assistance to foreign countries (other than sections
502B and 620A of this Act)’’.
(b) LIMITATIONS.—Section 573 of such Act (22
U.S.C. 2349aa–2) is amended—
(1) in the heading, by striking ‘‘SPECIFIC AU-
THORITIES AND’’;
(2) by striking subsection (a);
(3) by redesignating subsections (b) through (f)
as subsections (a) through (e), respectively; and
(4) in subsection (c) (as redesignated)—
(A) by striking paragraphs (1) and (2);
(B) 
by 
redesignating 
paragraphs 
(3)
through (5) as paragraphs (1) through (3), re-
spectively; and
(C) by amending paragraph (2) (as redes-
ignated) to read as follows:
‘‘(2)(A) Except as provided in subparagraph (B),
funds made available to carry out this chapter shall not
be made available for the procurement of weapons and am-
munition.
‘‘(B) Subparagraph (A) shall not apply to small arms
and ammunition in categories I and III of the United
States Munitions List that are integrally and directly re-
lated to antiterrorism training provided under this chapter
if, at least 15 days before obligating those funds, the
President notifies the appropriate congressional commit-
tees specified in section 634A of this Act in accordance
with the procedures applicable to reprogramming notifica-
tions under such section.
‘‘(C) The value (in terms of original acquisition cost)
of all equipment and commodities provided under this
chapter in any fiscal year may not exceed 25 percent of
the funds made available to carry out this chapter for that
fiscal year.’’.
(c) ANNUAL REPORT.—Section 574 of such Act (22
U.S.C. 2349aa–3) is hereby repealed.
(d) TECHNICAL CORRECTIONS.—Section 575 (22
U.S.C. 2349aa–4) and section 576 (22 U.S.C. 2349aa–
5) of such Act are redesignated as sections 574 and 575,
respectively.
SEC. 122. RESEARCH AND DEVELOPMENT EXPENSES.
Funds made available for fiscal years 1996 and 1997
to carry out chapter 8 of part II of the Foreign Assistance
Act of 1961 (22 U.S.C. 2349aa et seq.; relating to
antiterrorism assistance) may be made available to the
Technical Support Working Group of the Department of
State for research and development expenses related to
contraband detection technologies or for field demonstra-
tions of such technologies (whether such field demonstra-
tions take place in the United States or outside the United
States).
CHAPTER 4—NARCOTICS CONTROL
ASSISTANCE
SEC. 131. ADDITIONAL REQUIREMENTS.
(a) POLICY AND GENERAL AUTHORITIES.—Section
481(a) of the Foreign Assistance Act (22 U.S.C. 2291(a))
is amended—
(1) in paragraph (1)—
(A) by redesignating subparagraphs (D)
through (F) as subparagraphs (E) through (G),
respectively; and
(B) by inserting after subparagraph (C)
the following new subparagraph:
‘‘(D) International criminal activities, particu-
larly international narcotics trafficking, money laun-
dering, and corruption, endanger political and eco-
nomic stability and democratic development, and as-
sistance for the prevention and suppression of inter-
national criminal activities should be a priority for
the United States.’’; and
(2) in paragraph (4), by adding before the pe-
riod at the end the following: ‘‘, or for other
anticrime purposes’’.
(b) CONTRIBUTIONS
AND REIMBURSEMENT.—Sec-
tion 482(c) of that Act (22 U.S.C. 2291a(c)) is amend-
ed—
(1) by striking ‘‘CONTRIBUTION BY RECIPIENT
COUNTRY.—To’’ and inserting ‘‘CONTRIBUTIONS
AND REIMBURSEMENT.—(1) To’’; and
(2) by adding at the end the following new
paragraphs:
‘‘(2)(A) The President is authorized to accept con-
tributions from foreign governments to carry out the pur-
poses of this chapter. Such contributions shall be depos-
ited as an offsetting collection to the applicable appropria-
tion account and may be used under the same terms and
conditions as funds appropriated pursuant to this chapter.
‘‘(B) At the time of submission of the annual congres-
sional presentation documents required by section 634(a),
the President shall provide a detailed report on any con-
tributions received in the preceding fiscal year, the amount
of such contributions, and the purposes for which such
contributions were used.
‘‘(3) The President is authorized to provide assist-
ance under this chapter on a reimbursable basis. Such re-
imbursements shall be deposited as an offsetting collection
to the applicable appropriation and may be used under the
same terms and conditions as funds appropriated pursu-
ant to this chapter.’’.
(c) IMPLEMENTATION OF LAW ENFORCEMENT AS-
SISTANCE.—Section 482 of such Act (22 U.S.C. 2291a)
is amended by adding at the end the following new sub-
sections:
‘‘(f) TREATMENT OF FUNDS.—Funds transferred to
and consolidated with funds appropriated pursuant to this
chapter may be made available on such terms and condi-
tions as are applicable to funds appropriated pursuant to
this chapter. Funds so transferred or consolidated shall
be apportioned directly to the bureau within the Depart-
ment of State responsible for administering this chapter.
‘‘(g) EXCESS PROPERTY.—For purposes of this chap-
ter, the Secretary of State may use the authority of section
608, without regard to the restrictions of such section, to
receive nonlethal excess property from any agency of the
United States Government for the purpose of providing
such property to a foreign government under the same
terms and conditions as funds authorized to be appro-
priated for the purposes of this chapter.’’.
SEC. 132. NOTIFICATION REQUIREMENT.
(a) IN GENERAL.—The authority of section 1003(d)
of the National Narcotics Control Leadership Act of 1988
(21 U.S.C. 1502(d)) may be exercised with respect to
funds authorized to be appropriated pursuant to the For-
eign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) and
with respect to the personnel of the Department of State
only to the extent that the appropriate congressional com-
mittees have been notified 15 days in advance in accord-
ance with the reprogramming procedures applicable under
section 634A of that Act (22 U.S.C. 2394).
(b) DEFINITION.—For purposes of this section, the
term ‘‘appropriate congressional committees’’ means the
Committee on International Relations and the Committee
on Appropriations of the House of Representatives and the
Committee on Foreign Relations and the Committee on
Appropriations of the Senate.
SEC. 133. WAIVER OF RESTRICTIONS FOR NARCOTICS-RE-
LATED ECONOMIC ASSISTANCE.
For each of the fiscal years 1996 and 1997, narcot-
ics-related assistance under part I of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2151 et seq.) may be pro-
vided notwithstanding any other provision of law that re-
stricts assistance to foreign countries (other than section
490(e) or section 502B of that Act (22 U.S.C. 2291j(e)
and 2304)) if, at least 15 days before obligating funds
for such assistance, the President notifies the appropriate
congressional committees (as defined in section 481(e) of
that Act (22 U.S.C. 2291(e))) in accordance with the pro-
cedures applicable to reprogramming notifications under
section 634A of that Act (22 U.S.C. 2394).
CHAPTER 5—OTHER PROVISIONS
SEC. 141. STANDARDIZATION OF CONGRESSIONAL REVIEW
PROCEDURES FOR ARMS TRANSFERS.
(a) THIRD
COUNTRY
TRANSFERS
UNDER
FMS
SALES.—Section 3(d)(2) of the Arms Export Control Act
(22 U.S.C. 2753(d)(2)) is amended—
(1) in subparagraph (A), by striking ‘‘, as pro-
vided for in sections 36(b)(2) and 36(b)(3) of this
Act’’;
(2) in subparagraph (B), by striking ‘‘law’’ and
inserting ‘‘joint resolution’’; and
(3) by adding at the end the following:
‘‘(C) If the President states in his certification under
subparagraph (A) or (B) that an emergency exists which
requires that consent to the proposed transfer become ef-
fective immediately in the national security interests of the
United States, thus waiving the requirements of that sub-
paragraph, the President shall set forth in the certification
a detailed justification for his determination, including a
description of the emergency circumstances which neces-
sitate immediate consent to the transfer and a discussion
of the national security interests involved.
‘‘(D)(i) Any joint resolution under this paragraph
shall be considered in the Senate in accordance with the
provisions of section 601(b) of the International Security
Assistance and Arms Export Control Act of 1976.
‘‘(ii) For the purpose of expediting the consideration
and enactment of joint resolutions under this paragraph,
a motion to proceed to the consideration of any such joint
resolution after it has been reported by the appropriate
committee shall be treated as highly privileged in the
House of Representatives.’’.
(b) THIRD COUNTRY TRANSFERS UNDER COMMER-
CIAL SALES.—Section 3(d)(3) of such Act (22 U.S.C.
2753(d)(3)) is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(3)’’;
(2) in the first sentence—
(A) by striking ‘‘at least 30 calendar
days’’; and
(B) by striking ‘‘report’’ and inserting
‘‘certification’’; and
(3) by striking the last sentence and inserting
the following: ‘‘Such certification shall be submit-
ted—
‘‘(i) at least 15 calendar days before such con-
sent is given in the case of a transfer to a country
which is a member of the North Atlantic Treaty Or-
ganization or Australia, Japan, or New Zealand; and
‘‘(ii) at least 30 calendar days before such con-
sent is given in the case of a transfer to any other
country,
unless the President states in his certification that an
emergency exists which requires that consent to the pro-
posed transfer become effective immediately in the na-
tional security interests of the United States. If the Presi-
dent states in his certification that such an emergency ex-
ists (thus waiving the requirements of clause (i) or (ii),
as the case may be, and of subparagraph (B)) the Presi-
dent shall set forth in the certification a detailed justifica-
tion for his determination, including a description of the
emergency circumstances which necessitate that consent
to the proposed transfer become effective immediately and
a discussion of the national security interests involved.
‘‘(B) Consent to a transfer subject to subparagraph
(A) shall become effective after the end of the 15-day or
30-day period specified in subparagraph (A)(i) or (ii), as
the case may be, only if the Congress does not enact, with-
in that period, a joint resolution prohibiting the proposed
transfer.
‘‘(C)(i) Any joint resolution under this paragraph
shall be considered in the Senate in accordance with the
provisions of section 601(b) of the International Security
Assistance and Arms Export Control Act of 1976.
‘‘(ii) For the purpose of expediting the consideration
and enactment of joint resolutions under this paragraph,
a motion to proceed to the consideration of any such joint
resolution after it has been reported by the appropriate
committee shall be treated as highly privileged in the
House of Representatives.’’.
(c) COMMERCIAL SALES.—Section 36(c)(2) of such
Act (22 U.S.C. 2776(c)(2)) is amended by amending sub-
paragraphs (A) and (B) to read as follows:
‘‘(A) in the case of a license for an export to
the North Atlantic Treaty Organization, any mem-
ber country of that Organization or Australia,
Japan, or New Zealand, shall not be issued until at
least 15 calendar days after the Congress receives
such certification, and shall not be issued then if the
Congress, within that 15-day period, enacts a joint
resolution prohibiting the proposed export; and
‘‘(B) in the case of any other license, shall not
be issued until at least 30 calendar days after the
Congress receives such certification, and shall not be
issued then if the Congress, within that 30-day pe-
riod, enacts a joint resolution prohibiting the pro-
posed export.’’.
(d) COMMERCIAL MANUFACTURING AGREEMENTS.—
Section 36(d) of such Act (22 U.S.C. 2776(d)) is amend-
ed—
(1) by inserting ‘‘(1)’’ after ‘‘(d)’’;
(2) by striking ‘‘for or in a country not a mem-
ber of the North Atlantic Treaty Organization’’; and
(3) by adding at the end the following:
‘‘(2) A certification under this subsection shall be
submitted—
‘‘(A) at least 15 days before approval is given
in the case of an agreement for or in a country
which is a member of the North Atlantic Treaty Or-
ganization or Australia, Japan, or New Zealand; and
‘‘(B) at least 30 days before approval is given
in the case of an agreement for or in any other
country;
unless the President states in his certification that an
emergency exists which requires the immediate approval
of the agreement in the national security interests of the
United States.
‘‘(3) If the President states in his certification that
an emergency exists which requires the immediate ap-
proval of the agreement in the national security interests
of the United States, thus waiving the requirements of
paragraph (4), he shall set forth in the certification a de-
tailed justification for his determination, including a de-
scription of the emergency circumstances which neces-
sitate the immediate approval of the agreement and a dis-
cussion of the national security interests involved.
‘‘(4) Approval for an agreement subject to paragraph
(1) may not be given under section 38 if the Congress,
within the 15-day or 30-day period specified in paragraph
(2)(A) or (B), as the case may be, enacts a joint resolution
prohibiting such approval.
‘‘(5)(A) Any joint resolution under paragraph (4)
shall be considered in the Senate in accordance with the
provisions of section 601(b) of the International Security
Assistance and Arms Export Control Act of 1976.
‘‘(B) For the purpose of expediting the consideration
and enactment of joint resolutions under paragraph (4),
a motion to proceed to the consideration of any such joint
resolution after it has been reported by the appropriate
committee shall be treated as highly privileged in the
House of Representatives.’’.
(e) GOVERNMENT-TO-GOVERNMENT LEASES.—
(1) CONGRESSIONAL REVIEW PERIOD.—Section
62 of such Act (22 U.S.C. 2796a) is amended—
(A) in subsection (a), by striking ‘‘Not less
than 30 days before’’ and inserting ‘‘Before’’;
(B) in subsection (b)—
(i) by striking ‘‘determines, and im-
mediately reports to the Congress’’ and in-
serting ‘‘states in his certification’’; and
(ii) by adding at the end of the sub-
section the following: ‘‘If the President
states in his certification that such an
emergency exists, he shall set forth in the
certification a detailed justification for his
determination, including a description of
the emergency circumstances which neces-
sitate that the lease be entered into imme-
diately and a discussion of the national se-
curity interests involved.’’; and
(C) by adding at the end of the section the
following:
‘‘(c) The certification required by subsection (a) shall
be transmitted—
‘‘(1) not less than 15 calendar days before the
agreement is entered into or renewed in the case of
an agreement with the North Atlantic Treaty Orga-
nization, any member country of that Organization
or Australia, Japan, or New Zealand; and
‘‘(2) not less than 30 calendar days before the
agreement is entered into or renewed in the case of
an agreement with any other organization or coun-
try.’’.
(2) CONGRESSIONAL
DISAPPROVAL.—Section
63(a) of such Act (22 U.S.C. 2796b(a)) is amend-
ed—
(A) by striking ‘‘(a)(1)’’ and inserting
‘‘(a)’’;
(B) by striking out the ‘‘30 calendar days
after receiving the certification with respect to
that proposed agreement pursuant to section
62(a),’’ and inserting in lieu thereof ‘‘the 15-
day or 30-day period specified in section 62(c)
(1) or (2), as the case may be,’’; and
(C) by striking paragraph (2).
(f) EFFECTIVE DATE.—The amendments made by
this section apply with respect to certifications required
to be submitted on or after the date of the enactment of
this Act.
SEC. 142. STANDARDIZATION OF THIRD COUNTRY TRANS-
FERS OF DEFENSE ARTICLES.
Section 3 of the Arms Export Control Act (22 U.S.C.
2753) is amended by inserting after subsection (a) the fol-
lowing new subsection:
‘‘(b) The consent of the President under paragraph
(2) of subsection (a) or under paragraph (1) of section
505(a) of the Foreign Assistance Act of 1961 (as it relates
to subparagraph (B) of such paragraph) shall not be re-
quired for the transfer by a foreign country or inter-
national organization of defense articles sold by the United
States under this Act if—
‘‘(1) such articles constitute components incor-
porated into foreign defense articles;
‘‘(2) the recipient is the government of a mem-
ber country of the North Atlantic Treaty Organiza-
tion, the Government of Australia, the Government
of Japan, or the Government of New Zealand;
‘‘(3) the recipient is not a country designated
under section 620A of the Foreign Assistance Act of
1961;
‘‘(4) the United States-origin components are
not—
‘‘(A) significant military equipment (as de-
fined in section 47(9));
‘‘(B) defense articles for which notification
to Congress is required under section 36(b);
and
‘‘(C) identified by regulation as Missile
Technology Control Regime items; and
‘‘(5) the foreign country or international orga-
nization provides notification of the transfer of the
defense articles to the United States Government
not later than 30 days after the date of such trans-
fer.’’.
SEC. 143. INCREASED STANDARDIZATION, RATIONALIZA-
TION, AND INTEROPERABILITY OF ASSIST-
ANCE AND SALES PROGRAMS.
Paragraph (6) of section 515(a) of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2321i(a)(6)) is amended
by striking ‘‘among members of the North Atlantic Treaty
Organization and with the Armed Forces of Japan, Aus-
tralia, and New Zealand’’.
SEC. 144. DEFINITION OF SIGNIFICANT MILITARY EQUIP-
MENT.
Section 47 of the Arms Export Control Act (22
U.S.C. 2794) is amended—
(1) in paragraph (7), by striking ‘‘and’’ at the
end;
(2) in paragraph (8), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following new
paragraph:
‘‘(9) ‘significant military equipment’ means articles—
‘‘(A) for which special export controls are war-
ranted because of the capacity of such articles for
substantial military utility or capability; and
‘‘(B) identified on the United States Munitions
List.’’.
SEC. 145. ELIMINATION OF ANNUAL REPORTING REQUIRE-
MENT RELATING TO THE SPECIAL DEFENSE
ACQUISITION FUND.
(a) IN GENERAL.—Section 53 of the Arms Export
Control Act (22 U.S.C. 2795b) is hereby repealed.
(b) CONFORMING AMENDMENT.—Section 51(a)(4) of
such Act (22 U.S.C. 2795(a)(4)) is amended—
(1) by striking ‘‘(a)’’; and
(2) by striking subparagraph (B).
SEC. 146. COST OF LEASED DEFENSE ARTICLES THAT HAVE
BEEN LOST OR DESTROYED.
Section 61(a)(4) of the Arms Export Control Act (22
U.S.C. 2796(a)(4)) is amended by striking ‘‘and the re-
placement cost’’ and all that follows and inserting the fol-
lowing: ‘‘and, if the articles are lost or destroyed while
leased—
‘‘(A) in the event the United States in-
tends to replace the articles lost or destroyed,
the replacement cost (less any depreciation in
the value) of the articles; or
‘‘(B) in the event the United States does
not intend to replace the articles lost or de-
stroyed, an amount not less than the actual
value (less any depreciation in the value) speci-
fied in the lease agreement.’’.
SEC. 147. DESIGNATION OF MAJOR NON-NATO ALLIES.
(a) DESIGNATION.—
(1) NOTICE TO CONGRESS.—Chapter 2 of part
II of the Foreign Assistance Act of 1961 (22 U.S.C.
2311 et seq.), as amended by this Act, is further
amended by adding at the end the following new sec-
tion:
‘‘SEC. 517. DESIGNATION OF MAJOR NON-NATO ALLIES.
‘‘(a) NOTICE TO CONGRESS.—The President shall no-
tify the Congress in writing at least 30 days before—
‘‘(1) designating a country as a major non-
NATO ally for purposes of this Act and the Arms
Export Control Act (22 U.S.C. 2751 et seq.); or
‘‘(2) terminating such a designation.
‘‘(b) INITIAL DESIGNATIONS.—Australia, Egypt, Is-
rael, Japan, the Republic of Korea, and New Zealand shall
be deemed to have been so designated by the President
as of the effective date of this section, and the President
is not required to notify the Congress of such designation
of those countries.’’.
(2) DEFINITION.—Section 644 of such Act (22
U.S.C. 2403) is amended by adding at the end the
following:
‘‘(q) ‘Major non-NATO ally’ means a country which
is designated in accordance with section 517 as a major
non-NATO ally for purposes of this Act and the Arms Ex-
port Control Act (22 U.S.C. 2751 et seq.).’’.
(3) EXISTING DEFINITIONS.—(A) The last sen-
tence of section 21(g) of the Arms Export Control
Act (22 U.S.C. 2761(g)) is repealed.
(B) Section 65(d) of such Act (22 U.S.C.
2796d(d)) is amended—
(i) by striking ‘‘or major non-NATO’’; and
(ii) by striking out ‘‘or a’’ and all that fol-
lows through ‘‘Code’’.
(b) COOPERATIVE TRAINING AGREEMENTS.—Section
21(g) of the Arms Export Control Act (22 U.S.C.
2761(g)) is amended in the first sentence by striking
‘‘similar agreements’’ and all that follows through ‘‘other
countries’’ and inserting ‘‘similar agreements with coun-
tries’’.
SEC. 148. CERTIFICATION THRESHOLDS.
(a) INCREASE IN DOLLAR THRESHOLDS.—The Arms
Export Control Act (22 U.S.C. 2751 et seq.) is amended—
(1) in section 3(d) (22 U.S.C. 2753(d))—
(A) in paragraphs (1) and (3), by striking
‘‘$14,000,000’’ each place it appears and in-
serting ‘‘$25,000,000’’; and
(B) in paragraphs (1) and (3), by striking
‘‘$50,000,000’’ each place it appears and in-
serting ‘‘$75,000,000’’;
(2) in section 36 (22 U.S.C. 2776)—
(A) in subsections (b)(1), (b)(5)(C), and
(c)(1), by striking ‘‘$14,000,000’’ each place it
appears and inserting ‘‘$25,000,000’’;
(B) in subsections (b)(1), (b)(5)(C), and
(c)(1), by striking ‘‘$50,000,000’’ each place it
appears and inserting ‘‘$75,000,000’’; and
(C) in subsections (b)(1) and (b)(5)(C), by
striking ‘‘$200,000,000’’ each place it appears
and inserting ‘‘$300,000,000’’; and
(3) in section 63(a) (22 U.S.C. 2796b(a))—
(A) by striking ‘‘$14,000,000’’ and insert-
ing ‘‘$25,000,000’’; and
(B) by striking ‘‘$50,000,000’’ and insert-
ing ‘‘$75,000,000’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) apply with respect to certifications submit-
ted on or after the date of the enactment of this Act.
SEC. 149. DEPLETED URANIUM AMMUNITION.
Chapter 1 of part III of the Foreign Assistance Act
of 1961 (22 U.S.C. 2370 et seq.), as amended by this Act,
is further amended by adding at the end the following new
section:
‘‘SEC. 620H. DEPLETED URANIUM AMMUNITION.
‘‘(a) PROHIBITION.—Except as provided in sub-
section (b), none of the funds made available to carry out
this Act or any other Act may be made available to facili-
tate in any way the sale of M–833 antitank shells or any
comparable antitank shells containing a depleted uranium
penetrating component to any country other than—
‘‘(1) a country that is a member of the North
Atlantic Treaty Organization;
‘‘(2) a country that has been designated as a
major non-NATO ally (as defined in section 644(q));
or
‘‘(3) Taiwan.
‘‘(b) EXCEPTION.—The prohibition contained in sub-
section (a) shall not apply with respect to the use of funds
to facilitate the sale of antitank shells to a country if the
President determines that to do so is in the national secu-
rity interest of the United States.’’.
SEC. 150. END-USE MONITORING OF DEFENSE ARTICLES
AND DEFENSE SERVICES.
(a) IN GENERAL.—The Arms Export Control Act (22
U.S.C. 2751 et seq.) is amended by inserting after chapter
3 the following new chapter: