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.

HR 4919 EH

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 Representatives 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 follows:

`(2)(A) The value of such additions to stockpiles 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 described in paragraph (2).

(2) ITEMS COVERED- The items referred to in paragraph (1) are munitions, equipment, and material such as armor, artillery, automatic weapons ammunition, 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 negotiated pursuant to subsection (a) shall be at least equal to the fair market value of the items transferred. The concessions 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 authority 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, handling, and transportation of excess defense articles transferred 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 estimate of the amount of funds to be expended under subsection (a) with respect to that transfer.

SEC. 104. SENSE OF THE CONGRESS RELATING TO MILITARY 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 described 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 assist with reconnaissance, search-and-rescue, and resupply;

(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 before the period at the end the following: `, including those defense articles that were exported'.

SEC. 106. REQUIREMENTS RELATING TO COUNTRY EXEMPTIONS 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 amended by adding at the end the following:

`(j) REQUIREMENTS RELATING TO COUNTRY EXEMPTIONS FOR LICENSING OF DEFENSE ITEMS FOR EXPORT TO FOREIGN COUNTRIES-

`(1) REQUIREMENT FOR BILATERAL AGREEMENT-

`(A) IN GENERAL- The President may utilize the regulatory or other authority pursuant 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 matter 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 respect to an exemption for Canada from the licensing requirements of this Act for the export of defense items.

`(2) REQUIREMENTS OF BILATERAL AGREEMENT- A bilateral agreement referred to paragraph (1)--

`(A) shall, at a minimum, require the foreign country, as necessary, to revise its policies and practices, and promulgate or enact necessary modifications to its laws and regulations to establish an export control regime that is at least comparable to United States law, regulation, and policy regarding--

`(i) handling of all United States-origin defense items exported to the foreign country, including prior written United States Government approval for any reexports to third countries;

`(ii) end-use and retransfer control commitments, including securing binding end-use and retransfer control commitments from all end-users, including such documentation as is needed in order to ensure compliance and enforcement with respect 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 cooperation with United States Government law enforcement and intelligence agencies to allow for sharing of export and import documentation and background information on foreign businesses and individuals employed by or otherwise connected to those businesses; and

`(iv) establishment of a list of controlled defense items to ensure coverage of those items to be exported under the exemption; and

`(B) should, at a minimum, require the foreign country, as necessary, to revise its policies and practices, and promulgate or enact necessary modifications to its laws and regulations 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 unclassified information exported to foreign nationals;

`(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 foreign 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 notification that--

`(A) the United States has entered into a bilateral agreement with that foreign country satisfying all requirements set forth in paragraph (2);

`(B) the foreign country has promulgated or enacted all necessary modifications to its laws and regulations to comply with its obligations under the bilateral agreement with the United States; and

`(C) confirms that the appropriate congressional committees will continue to receive notifications pursuant to the authorities, procedures, and practices of section 36 of this Act for defense exports to a foreign country to which that section would apply and without regard to any form of defense export licensing exemption 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 COMMITTEES- The term `appropriate congressional committees' means--

`(i) the Committee on International Relations and the Committee on Appropriations of the House of Representatives; and

`(ii) the Committee on Foreign Relations 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 exemption, including a detailed summary of the defense articles, 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 documentation relating to the export of United States defense articles, defense services, and related technical data under an exemption which will be compiled and maintained in order to facilitate law enforcement efforts to detect, prevent, and prosecute criminal violations of any provision of this Act, including the efforts on the part of countries and factions engaged in international terrorism to illicitly acquire sophisticated United States weaponry.'.

(c) NOTIFICATION RELATING TO EXPORT OF COMMERCIAL 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 application for a license for export of a commercial communications 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 Federation, Ukraine, Australia, Japan, or New Zealand'.

SEC. 107. REPORT ON GOVERNMENT-TO-GOVERNMENT ARMS SALES END-USE MONITORING PROGRAM.

Not later than 90 days after the date of the enactment of this Act, the President shall prepare and transmit to the Committee on International Relations and the Committee on Foreign Relations of the Senate a report that contains a summary of the status of the efforts of the Defense Security Cooperation Agency to implement the End-Use Monitoring Enhancement Plan relating to government-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 appropriate charge for a proportionate amount of any nonrecurring 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 21 of the Arms Export Control Act (22 U.S.C. 2796, 2761).

(c) GREECE- The President is authorized to transfer to the Government of Greece the `KNOX' class frigates VREELAND (FF 1068) and TRIPPE (FF 1075). Such transfers shall be on a grant basis under section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j).

(d) TURKEY- The President is authorized to transfer to the Government of Turkey the `OLIVER HAZARD PERRY` class guided missile frigates JOHN A MOORE (FFG 19) and FLATLEY (FFG 21). Such transfers shall be on a combined lease-sale basis under sections 61 and 21 of the Arms Export Control Act (22 U.S.C. 2796, 2761).

SEC. 202. INAPPLICABILITY OF AGGREGATE ANNUAL LIMITATION ON VALUE OF TRANSFERRED EXCESS DEFENSE ARTICLES.

In the case of the transfer of a naval vessel authorized under section 201 of this Act to be transferred on a grant basis under section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j), the value of the vessel transferred shall not be included for purposes of subsection (g) of that section in the aggregate value of excess defense articles transferred to countries under that section in any fiscal year.

SEC. 203. COSTS OF TRANSFERS.

Any expense incurred by the United States in connection with a transfer authorized by this title shall be charged to the recipient.

SEC. 204. CONDITIONS RELATING TO COMBINED LEASE-SALE TRANSFERS.

A transfer of a vessel on a combined lease-sale basis authorized by section 201 shall be made in accordance with the following requirements:

(1) The President may initially transfer the vessel by lease, with lease payments suspended for the term of the lease, if the country entering into the lease for the vessel simultaneously enters into a foreign military sales agreement for the transfer of title to the vessel.

(2) The President may not deliver to the purchasing country title to the vessel until the purchase price of the vessel under such a foreign military sales agreement is paid in full.

(3) Upon payment of the purchase price in full under such a sales agreement and delivery of title to the recipient country, the President shall terminate the lease.

(4) If the purchasing country fails to make full payment of the purchase price in accordance with the sales agreement--

(A) the sales agreement shall be immediately 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 required 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 required to pay any interest to the recipient country on any amount paid to the United States by the recipient 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 appropriations under preceding sentence for the purpose described 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 authorized 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.

END