IIB
106TH CONGRESS
2D SESSION
H. R. 4919
IN THE SENATE OF THE UNITED STATES
JULY 25, 2000
Received; read twice and referred to the Committee on Foreign Relations
AN ACT
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.
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Defense and Security
Assistance Act of 2000’’.
TITLE I—SECURITY ASSISTANCE
SEC. 101. ADDITIONS TO UNITED STATES WAR RESERVE
STOCKPILES FOR ALLIES.
Section 514(b)(2) of the Foreign Assistance Act of
1961 (22 U.S.C. 2321h(b)(2)) is amended to read as fol-
lows:
‘‘(2)(A) The value of such additions to stock-
piles of defense articles in foreign countries shall not
exceed $50,000,000 for fiscal year 2001.
‘‘(B) Of the amount specified in subparagraph
(A) for fiscal year 2001, not more than $50,000,000
may be made available for stockpiles in the Republic
of Korea.’’.
SEC. 102. TRANSFER OF CERTAIN OBSOLETE OR SURPLUS
DEFENSE ARTICLES IN THE WAR RESERVE
STOCKPILES FOR ALLIES TO ISRAEL.
(a) TRANSFERS TO ISRAEL.—
(1) AUTHORITY.—Notwithstanding section 514
of the Foreign Assistance Act of 1961 (22 U.S.C.
2321h), the President is authorized to transfer to
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Israel, in return for concessions to be negotiated by
the Secretary of Defense, with the concurrence of
the Secretary of State, any or all of the items de-
scribed in paragraph (2).
(2) ITEMS COVERED.—The items referred to in
paragraph (1) are munitions, equipment, and mate-
rial such as armor, artillery, automatic weapons am-
munition, and missiles that—
(A) are obsolete or surplus items;
(B) are in the inventory of the Department
of Defense;
(C) are intended for use as reserve stocks
for Israel; and
(D) as of the date of the enactment of this
Act, are located in a stockpile in Israel.
(b) CONCESSIONS.—The value of concessions nego-
tiated pursuant to subsection (a) shall be at least equal
to the fair market value of the items transferred. The con-
cessions may include cash compensation, services, waiver
of charges otherwise payable by the United States, and
other items of value.
(c) ADVANCE NOTIFICATION
OF TRANSFER.—Not
less than 30 days before making a transfer under the au-
thority of this section, the President shall transmit to the
Committee on Foreign Relations of the Senate, and the
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SEC. 104. SENSE OF THE CONGRESS RELATING TO MILI-
TARY EQUIPMENT FOR THE PHILIPPINES.
(a) IN GENERAL.—It is the sense of the Congress
that the United States Government should work with the
Government of the Republic of the Philippines to enable
that Government to procure military equipment that can
be used to upgrade the capabilities and to improve the
quality of life of the armed forces of the Philippines.
(b) MILITARY EQUIPMENT.—Military equipment de-
scribed in subsection (a) should include—
(1) naval vessels, including amphibious landing
crafts, for patrol, search-and-rescue, and transport;
(2) F–5 aircraft and other aircraft that can as-
sist with reconnaissance, search-and-rescue, and re-
supply;
(3) attack, transport, and search-and-rescue
helicopters; and
(4) vehicles and other personnel equipment.
SEC. 105. ANNUAL MILITARY ASSISTANCE REPORT.
Section 655(b)(3) of the Foreign Assistance Act of
1961 (22 U.S.C. 2415(b)(3)) is amended by inserting be-
fore the period at the end the following: ‘‘, including those
defense articles that were exported’’.
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SEC. 106. REQUIREMENTS RELATING TO COUNTRY EXEMP-
TIONS FOR LICENSING OF DEFENSE ITEMS
FOR EXPORT TO FOREIGN COUNTRIES.
(a) REQUIREMENTS OF EXEMPTION.—Section 38 of
the Arms Export Control Act (22 U.S.C. 2778) is amend-
ed by adding at the end the following:
‘‘(j) REQUIREMENTS RELATING TO COUNTRY EX-
EMPTIONS FOR LICENSING OF DEFENSE ITEMS FOR EX-
PORT TO FOREIGN COUNTRIES.—
‘‘(1) REQUIREMENT
FOR
BILATERAL
AGREE-
MENT.—
‘‘(A) IN
GENERAL.—The President may
utilize the regulatory or other authority pursu-
ant to this Act to exempt a foreign country
from the licensing requirements of this Act with
respect to exports of defense items only if the
United States Government has concluded an
agreement described in paragraph (2) with the
foreign country that is legally-binding as a mat-
ter of domestic and international law on both
the United States and that country.
‘‘(B) EXCEPTION.—The requirement to
conclude a bilateral agreement in accordance
with subparagraph (A) shall not apply with re-
spect to an exemption for Canada from the li-
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censing requirements of this Act for the export
of defense items.
‘‘(2) REQUIREMENTS
OF
BILATERAL
AGREE-
MENT.—A bilateral agreement referred to paragraph
(1)—
‘‘(A) shall, at a minimum, require the for-
eign country, as necessary, to revise its policies
and practices, and promulgate or enact nec-
essary modifications to its laws and regulations
to establish an export control regime that is at
least comparable to United States law, regula-
tion, and policy regarding—
‘‘(i) handling of all United States-ori-
gin defense items exported to the foreign
country, including prior written United
States Government approval for any reex-
ports to third countries;
‘‘(ii) end-use and retransfer control
commitments, including securing binding
end-use and retransfer control commit-
ments from all end-users, including such
documentation as is needed in order to en-
sure compliance and enforcement with re-
spect to such United States-origin defense
items;
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‘‘(iii) establishment of a procedure
comparable to a ‘watchlist’ (if such a
watchlist does not exist) and full coopera-
tion with United States Government law
enforcement and intelligence agencies to
allow for sharing of export and import doc-
umentation and background information
on foreign businesses and individuals em-
ployed by or otherwise connected to those
businesses; and
‘‘(iv) establishment of a list of con-
trolled defense items to ensure coverage of
those items to be exported under the ex-
emption; and
‘‘(B) should, at a minimum, require the
foreign country, as necessary, to revise its poli-
cies and practices, and promulgate or enact
necessary modifications to its laws and regula-
tions to establish an export control regime that
is at least comparable to United States law,
regulation, and policy regarding—
‘‘(i) controls on the export of tangible
or intangible technology, including via fax,
phone, and electronic media;
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‘‘(ii) appropriate controls on unclassi-
fied information exported to foreign na-
tionals;
‘‘(iii) controls on arms trafficking and
brokering; and
‘‘(iv) violations and penalties of export
control laws.
‘‘(3) ADVANCE NOTIFICATION.—Not less than
30 days before authorizing an exemption for a for-
eign country from the licensing requirements of this
Act for the export of defense items, the President
shall transmit to the Committee on International
Relations of the House of Representatives and the
Committee on Foreign Relations of the Senate a no-
tification that—
‘‘(A) the United States has entered into a
bilateral agreement with that foreign country
satisfying all requirements set forth in para-
graph (2);
‘‘(B) the foreign country has promulgated
or enacted all necessary modifications to its
laws and regulations to comply with its obliga-
tions under the bilateral agreement with the
United States; and
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‘‘(C) confirms that the appropriate con-
gressional committees will continue to receive
notifications pursuant to the authorities, proce-
dures, and practices of section 36 of this Act
for defense exports to a foreign country to
which that section would apply and without re-
gard to any form of defense export licensing ex-
emption otherwise available for that country.
‘‘(4) DEFINITIONS.—In this section:
‘‘(A) DEFENSE ITEM.—The term ‘defense
item’ means defense articles, defense services,
and related technical data.
‘‘(B) APPROPRIATE CONGRESSIONAL COM-
MITTEES.—The term ‘appropriate congressional
committees’ means—
‘‘(i) the Committee on International
Relations and the Committee on Appro-
priations of the House of Representatives;
and
‘‘(ii) the Committee on Foreign Rela-
tions and the Committee on Appropriations
of the Senate.’’.
(b) NOTIFICATION OF EXEMPTION.—Section 38(f) of
the Arms Export Control Act (22 U.S.C. 2778(f)) is
amended—