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
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
Committee on International Relations of the House of
Representatives a notification of the proposed transfer.
The notification shall identify the items to be transferred
and the concessions to be received.
(d) EXPIRATION OF AUTHORITY.—No transfer may
be made under the authority of this section 3 years after
the date of the enactment of this Act.
SEC. 103. EXCESS DEFENSE ARTICLES FOR MONGOLIA.
(a) USES FOR WHICH FUNDS ARE AVAILABLE.—
Notwithstanding section 516(e) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2321j(e)), during each of the fiscal
years 2000 and 2001, funds available to the Department
of Defense may be expended for crating, packing, han-
dling, and transportation of excess defense articles trans-
ferred under the authority of section 516 of that Act to
Mongolia.
(b) CONTENT OF CONGRESSIONAL NOTIFICATION.—
Each notification required to be submitted under section
516(f) of the Foreign Assistance Act of 1961 (22 U.S.C.
2321j(f)) with respect to a proposed transfer of a defense
article described in subsection (a) shall include an esti-
mate of the amount of funds to be expended under sub-
section (a) with respect to that transfer.
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’’.
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-
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;
‘‘(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;
‘‘(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
‘‘(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—
(1) by inserting ‘‘(1)’’ after ‘‘(f)’’; and
(2) by adding at the end the following:
‘‘(2) The President may not authorize an exemption
for a foreign country from the licensing requirements of
this Act for the export of defense items under subsection
(j) or any other provision of this Act until 45 days after
the date on which the President has transmitted to the
Committee on International Relations of the House of
Representatives and the Committee on Foreign Relations
of the Senate a notification that includes—
‘‘(A) a description of the scope of the exemp-
tion, including a detailed summary of the defense ar-
ticles, defense services, and related technical data
proposed to be exported under the exemption; and
‘‘(B) a determination by the Attorney General
that the bilateral agreement requires sufficient docu-
mentation relating to the export of United States de-
fense articles, defense services, and related technical
data under an exemption which will be compiled and
maintained in order to facilitate law enforcement ef-
forts to detect, prevent, and prosecute criminal viola-
tions of any provision of this Act, including the ef-
forts on the part of countries and factions engaged
in international terrorism to illicitly acquire sophisti-
cated United States weaponry.’’.
(c) NOTIFICATION RELATING TO EXPORT OF COM-
MERCIAL
COMMUNICATIONS
SATELLITE.—Section
36(c)(1) of the Arms Export Control Act (22 U.S.C.
2776(c)(1)) is amended in the first sentence by inserting
at the end before the period the following: ‘‘, except that
a certification shall not be required in the case of an appli-
cation for a license for export of a commercial communica-
tions satellite designated on the United States Munitions
List for launch from, and by nationals of, the United
States, or the territory of a member country of the North
Atlantic Treaty Organization (NATO), the Russian Fed-
eration, Ukraine, Australia, Japan, or New Zealand’’.
SEC. 107. REPORT ON GOVERNMENT-TO-GOVERNMENT
ARMS SALES END-USE MONITORING PRO-
GRAM.
Not later than 90 days after the date of the enact-
ment of this Act, the President shall prepare and transmit
to the Committee on International Relations and the Com-
mittee on Foreign Relations of the Senate a report that
contains a summary of the status of the efforts of the De-
fense Security Cooperation Agency to implement the End-
Use Monitoring Enhancement Plan relating to govern-
ment-to-government transfers of defense articles, defense
services, and related technologies.
SEC. 108. WAIVER OF CERTAIN COSTS.
Notwithstanding any other provision of law, the
President may waive the requirement to impose an appro-
priate charge for a proportionate amount of any non-
recurring costs of research, development, and production
under section 21(e)(1)(B) of the Arms Export Control Act
(22 U.S.C. 2761(e)(1)(B)) for the November 1999 sale
of 5 UH–60L helicopters to the Republic of Colombia in
support of counternarcotics activities.
TITLE II—TRANSFERS OF NAVAL
VESSELS
SEC. 201. AUTHORITY TO TRANSFER NAVAL VESSELS TO
CERTAIN FOREIGN COUNTRIES.
(a) BRAZIL.—The President is authorized to transfer
to the Government of Brazil the ‘‘THOMASTON’’ class
dock landing ships ALAMO (LSD 33) and HERMITAGE
(LSD 34) and the ‘‘GARCIA’’ class frigates BRADLEY
(FF 1041), DAVIDSON (FF 1045), SAMPLE (FF
1048), and ALBERT DAVID (FF 1050). Such transfers
shall be on a grant basis under section 516 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2321j).
(b) CHILE.—The President is authorized to transfer
to the Government of the Chile the ‘‘OLIVER HAZARD
PERRY’’ class guided missile frigates WADSWORTH
(FFG 9) and ESTOCIN (FFG 15). Such transfers shall
be on a combined lease-sale basis under sections 61 and
(A) the sales agreement shall be imme-
diately terminated;
(B) the suspension of lease payments
under the lease shall be vacated; and
(C) the United States shall be entitled to
retain all funds received on or before the date
of the termination under the sales agreement,
up to the amount of lease payments due and
payable under the lease and all other costs re-
quired by the lease to be paid to that date.
(5) If a sales agreement is terminated pursuant
to paragraph (4), the United States shall not be re-
quired to pay any interest to the recipient country
on any amount paid to the United States by the re-
cipient country under the sales agreement and not
retained by the United States under the lease.
SEC. 205. FUNDING OF CERTAIN COSTS OF TRANSFERS.
There is authorized to be appropriated to the Defense
Vessels Transfer Program Account such funds as may be
necessary to cover the costs (as defined in section 502 of
the Congressional Budget Act of 1974 (2 U.S.C. 661a))
of the lease-sale transfers authorized by section 201.
Funds appropriated pursuant to the authorization of ap-
propriations under preceding sentence for the purpose de-
scribed in such sentence may not be available for any other
purpose.
SEC. 206. 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 section 201, 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, performed at a shipyard located in the
United States, including a United States Navy shipyard.
SEC. 207. SENSE OF THE CONGRESS REGARDING TRANSFER
OF NAVAL VESSELS ON A GRANT BASIS.
It is the sense of the Congress that naval vessels au-
thorized under section 201 of this Act to be transferred
to foreign countries on a grant basis under section 516
of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j)
should be so transferred only if the United States receives
appropriate benefits from such countries for transferring
the vessel on a grant basis.
SEC. 208. EXPIRATION OF AUTHORITY.
The authority granted by section 201 of this Act shall
expire 2 years after the date of the enactment of this Act.
Passed the House of Representatives July 24, 2000.
Attest:
Clerk.