--H.R.4919--

H.R.4919

Begun and held at the City of Washington on Monday,

the twenty-fourth day of January, two thousand

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.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE- This Act may be cited as the `Security Assistance Act of 2000'.

(b) TABLE OF CONTENTS- The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Definition.

TITLE I--MILITARY AND RELATED ASSISTANCE

Subtitle A--Foreign Military Sales and Financing Authorities

Sec. 101. Authorization of appropriations.

Sec. 102. Requirements relating to country exemptions for licensing of defense items for export to foreign countries.

Subtitle B--Stockpiling of Defense Articles for Foreign Countries

Sec. 111. Additions to United States war reserve stockpiles for allies.

Sec. 112. Transfer of certain obsolete or surplus defense articles in the war reserve stockpiles for allies to Israel.

Subtitle C--Other Assistance

Sec. 121. Defense drawdown special authorities.

Sec. 122. Increased authority for the transport of excess defense articles.

TITLE II--INTERNATIONAL MILITARY EDUCATION AND TRAINING

Sec. 201. Authorization of appropriations.

Sec. 202. Additional requirements.

TITLE III--NONPROLIFERATION AND EXPORT CONTROL ASSISTANCE

Sec. 301. Nonproliferation and export control assistance.

Sec. 302. Nonproliferation and export control training in the United States.

Sec. 303. Science and technology centers.

Sec. 304. Trial transit program.

Sec. 305. Exception to authority to conduct inspections under the Chemical Weapons Convention Implementation Act of 1998.

TITLE IV--ANTITERRORISM ASSISTANCE

Sec. 401. Authorization of appropriations.

TITLE V--INTEGRATED SECURITY ASSISTANCE PLANNING

Subtitle A--Establishment of a National Security Assistance Strategy

Sec. 501. National Security Assistance Strategy.

Subtitle B--Allocations for Certain Countries

Sec. 511. Security assistance for new NATO members.

Sec. 512. Increased training assistance for Greece and Turkey.

Sec. 513. Assistance for Israel.

Sec. 514. Assistance for Egypt.

Sec. 515. Security assistance for certain countries.

Sec. 516. Border security and territorial independence.

TITLE VI--TRANSFERS OF NAVAL VESSELS

Sec. 601. Authority to transfer naval vessels to certain foreign countries.

Sec. 602. Inapplicability of aggregate annual limitation on value of transferred excess defense articles.

Sec. 603. Costs of transfers.

Sec. 604. Conditions relating to combined lease-sale transfers.

Sec. 605. Funding of certain costs of transfers.

Sec. 606. Repair and refurbishment in United States shipyards.

Sec. 607. Sense of the Congress regarding transfer of naval vessels on a grant basis.

Sec. 608. Expiration of authority.

TITLE VII--MISCELLANEOUS PROVISIONS

Sec. 701. Utilization of defense articles and defense services.

Sec. 702. Annual military assistance report.

Sec. 703. Report on government-to-government arms sales end-use monitoring program.

Sec. 704. MTCR report transmittals.

Sec. 705. Stinger missiles in the Persian Gulf region.

Sec. 706. Sense of the Congress regarding excess defense articles.

Sec. 707. Excess defense articles for Mongolia.

Sec. 708. Space cooperation with Russian persons.

Sec. 709. Sense of the Congress relating to military equipment for the Philippines.

Sec. 710. Waiver of certain costs.

SEC. 2. DEFINITION.

In this Act, the term `appropriate committees of Congress' means the Committee on Foreign Relations of the Senate and the Committee on International Relations of the House of Representatives.

TITLE I--MILITARY AND RELATED ASSISTANCE

Subtitle A--Foreign Military Sales and Financing Authorities

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated for grant assistance under section 23 of the Arms Export Control Act (22 U.S.C. 2763) and for the subsidy cost, as defined in section 502(5) of the Federal Credit Reform Act of 1990, of direct loans under such section $3,550,000,000 for fiscal year 2001 and $3,627,000,000 for fiscal year 2002.

SEC. 102. 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 a binding bilateral agreement with the foreign country. Such agreement shall--

`(i) meet the requirements set forth in paragraph (2); and

`(ii) be implemented by the United States and the foreign country in a manner that is legally-binding under their domestic laws.

`(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 requiring--

`(i) conditions on the 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 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 relating to defense items exported to foreign nationals;

`(iii) controls on international arms trafficking and brokering;

`(iv) cooperation with United States Government agencies, including intelligence agencies, to combat efforts by third countries to acquire defense items, the export of which to such countries would not be authorized pursuant to the export control regimes of the foreign country and the United States; and

`(v) violations of export control laws, and penalties for such violations.

`(3) ADVANCE CERTIFICATION- 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 certification 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) 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 ITEMS- The term `defense items' 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 30 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 covered by the exemption; and

`(B) a determination by the Attorney General that the bilateral agreement concluded under subsection (j) requires the compilation and maintenance of sufficient documentation relating to the export of United States defense articles, defense services, and related technical data 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 defense items.

`(3) Paragraph (2) shall not apply with respect to an exemption for Canada from the licensing requirements of this Act for the export of defense items.'.

(c) EXPORTS OF COMMERCIAL COMMUNICATIONS SATELLITES-

(1) AMENDMENT OF THE ARMS EXPORT CONTROL ACT- Section 36(c)(2) of the Arms Export Control Act (22 U.S.C. 2776(c)(2)) is amended--

(A) by striking `and' at the end of subparagraph (A);

(B) by redesignating subparagraph (B) as subparagraph (C); and

(C) by inserting after subparagraph (A) the following:

`(B) in the case of a license for an export of a commercial communications satellite for launch from, and by nationals of, the Russian Federation, Ukraine, or Kazakhstan, 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'.

(2) SENSE OF THE CONGRESS- It is the sense of the Congress that the appropriate committees of Congress and the appropriate agencies of the United States Government should review the commodity jurisdiction of United States commercial communications satellites.

(d) SENSE OF THE CONGRESS ON SUBMISSION TO THE SENATE OF CERTAIN AGREEMENTS AS TREATIES- It is the sense of the Congress that, prior to amending the International Traffic in Arms Regulations, the Secretary of State should consult with the appropriate committees of Congress for the purpose of determining whether certain agreements regarding defense trade with the United Kingdom and Australia should be submitted to the Senate as treaties.

Subtitle B--Stockpiling of Defense Articles for Foreign Countries

SEC. 111. 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), not more than $50,000,000 may be made available for stockpiles in the Republic of Korea.'.

SEC. 112. 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.

Subtitle C--Other Assistance

SEC. 121. DEFENSE DRAWDOWN SPECIAL AUTHORITIES.

(a) EMERGENCY DRAWDOWN- Section 506(a)(2)(B) of the Foreign Assistance Act of 1961 (22 U.S.C. 2318(a)(2)(B)) is amended by striking `$150,000,000' and inserting `$200,000,000'.

(b) ADDITIONAL DRAWDOWN- Section 506(a)(2)(A)(i) of such Act (22 U.S.C. 2318(a)(2)(A)(i)) is amended--

(1) by striking `or' at the end of subclause (II); and

(2) by striking subclause (III) and inserting the following:

`(III) chapter 8 of part II (relating to antiterrorism assistance);

`(IV) chapter 9 of part II (relating to nonproliferation assistance); or

`(V) the Migration and Refugee Assistance Act of 1962; or'.

SEC. 122. INCREASED AUTHORITY FOR THE TRANSPORT OF EXCESS DEFENSE ARTICLES.

Section 516(e)(2)(C) of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j(e)(2)(C)) is amended by striking `25,000' and inserting `50,000'.

TITLE II--INTERNATIONAL MILITARY EDUCATION AND TRAINING

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to the President $55,000,000 for fiscal year 2001 and $65,000,000 for fiscal year 2002 to carry out chapter 5 of part II of the Foreign Assistance Act of 1961 (22 U.S.C. 2347 et seq.).

SEC. 202. ADDITIONAL REQUIREMENTS.

Chapter 5 of part II of the Foreign Assistance Act of 1961 (22 U.S.C. 2347 et seq.) is amended by adding at the end the following new sections:

`SEC. 547. CONSULTATION REQUIREMENT.

`The selection of foreign personnel for training under this chapter shall be made in consultation with the United States defense attache to the relevant country.

`SEC. 548. RECORDS REGARDING FOREIGN PARTICIPANTS.

`In order to contribute most effectively to the development of military professionalism in foreign countries, the Secretary of Defense shall develop and maintain a database containing records on each foreign military or defense ministry civilian participant in education and training activities conducted under this chapter after December 31, 2000. This record shall include the type of instruction received, the dates of such instruction, whether such instruction was completed successfully, and, to the extent practicable, a record of the person's subsequent military or defense ministry career and current position and location.'.

TITLE III--NONPROLIFERATION AND EXPORT CONTROL ASSISTANCE

SEC. 301. NONPROLIFERATION AND EXPORT CONTROL ASSISTANCE.

Part II of the Foreign Assistance Act of 1961 (22 U.S.C. 2301 et seq.) is amended by adding at the end the following new chapter:

`CHAPTER 9--NONPROLIFERATION AND EXPORT CONTROL ASSISTANCE

`SEC. 581. PURPOSES.

`The purposes of assistance under this chapter are to halt the proliferation of nuclear, chemical, and biological weapons, and conventional weaponry, through support of activities designed--

`(1) to enhance the nonproliferation and export control capabilities of friendly countries by providing training and equipment to detect, deter, monitor, interdict, and counter proliferation;

`(2) to strengthen the bilateral ties of the United States with friendly governments by offering concrete assistance in this area of vital national security interest;

`(3) to accomplish the activities and objectives set forth in sections 503 and 504 of the FREEDOM Support Act (22 U.S.C. 5853, 5854), without regard to the limitation of those sections to the independent states of the former Soviet Union; and

`(4) to promote multilateral activities, including cooperation with international organizations, relating to nonproliferation.

`SEC. 582. AUTHORIZATION OF ASSISTANCE.

`Notwithstanding any other provision of law (other than section 502B or section 620A of this Act), the President is authorized to furnish, on such terms and conditions as the President may determine, assistance in order to carry out the purposes of this chapter. Such assistance may include training services and the provision of funds, equipment, and other commodities related to the detection, deterrence, monitoring, interdiction, and prevention or countering of proliferation, the establishment of effective nonproliferation laws and regulations, and the apprehension of those individuals involved in acts of proliferation of such weapons.

`SEC. 583. TRANSIT INTERDICTION.

`(a) ALLOCATION OF FUNDS- In providing assistance under this chapter, the President should ensure that not less than one-quarter of the total of such assistance is expended for the purpose of enhancing the capabilities of friendly countries to detect and interdict proliferation-related shipments of cargo that originate from, and are destined for, other countries.

`(b) PRIORITY TO CERTAIN COUNTRIES- Priority shall be given in the apportionment of the assistance described under subsection (a) to any friendly country that has been determined by the Secretary of State to be a country frequently transited by proliferation-related shipments of cargo.

`SEC. 584. LIMITATIONS.

`The limitations contained in section 573(a) and (d) of this Act shall apply to this chapter.

`SEC. 585. AUTHORIZATION OF APPROPRIATIONS.

`(a) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the President to carry out this chapter $129,000,000 for fiscal year 2001 and $142,000,000 for fiscal year 2002.

`(b) AVAILABILITY OF FUNDS- Funds made available under subsection (a) may be used notwithstanding any other provision of law (other than section 502B or 620A) and shall remain available until expended.

`(c) TREATMENT OF FISCAL YEAR 2001 APPROPRIATIONS- Amounts made available by the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2001, under `Nonproliferation, Antiterrorism, Demining, and Related Programs' and `Assistance for the Independent States of the Former Soviet Union' accounts for the activities described in subsection (d) shall be considered to be made available pursuant to this chapter.

`(d) COVERED ACTIVITIES- The activities referred to in subsection (c) are--

`(1) assistance under the Nonproliferation and Disarmament Fund;

`(2) assistance for science and technology centers in the independent states of the former Soviet Union;

`(3) export control assistance; and

`(4) export control and border assistance under chapter 11 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2295 et seq.) or the FREEDOM Support Act (22 U.S.C. 5801 et seq.).'.

SEC. 302. NONPROLIFERATION AND EXPORT CONTROL TRAINING IN THE UNITED STATES.

Of the amounts made available for fiscal years 2001 and 2002 under chapter 9 of part II of the Foreign Assistance Act of 1961, as added by section 301, $2,000,000 is authorized to be available each such fiscal year for the purpose of training and education of personnel from friendly countries in the United States.

SEC. 303. SCIENCE AND TECHNOLOGY CENTERS.

(a) AVAILABILITY OF FUNDS- Of the amounts made available for the fiscal years 2001 and 2002 under chapter 9 of part II of the Foreign Assistance Act of 1961, as added by section 301, $59,000,000 for fiscal year 2001 and $65,000,000 for fiscal year 2002 are authorized to be available for science and technology centers in the independent states of the former Soviet Union.

(b) SENSE OF THE CONGRESS- It is the sense of the Congress, taking into account section 1132 of H. R. 3427 of the One Hundred Sixth Congress (as enacted by section 1000(a)(7) of Public Law 106-113), that the practice of auditing entities receiving funds authorized under this section should be significantly expanded and that the burden of supplying auditors should be spread equitably within the United States Government.

SEC. 304. TRIAL TRANSIT PROGRAM.

(a) ALLOCATION OF FUNDS- Of the amount made available for fiscal year 2001 under chapter 9 of the Foreign Assistance Act of 1961, as added by section 301, $5,000,000 is authorized to be available to establish a static cargo x-ray facility in Malta, if the Secretary of State first certifies to the appropriate committees of Congress that the Government of Malta has provided adequate assurances that such a facility will be utilized in connection with random cargo inspections by Maltese customs officials of container traffic transiting through the Malta Freeport.

(b) REQUIREMENT OF WRITTEN ASSESSMENT- In the event that a facility is established in Malta pursuant to subsection (a), the Secretary of State shall submit a written assessment to the appropriate committees of Congress not later than 270 days after such a facility commences operation detailing--

(1) statistics on utilization of the facility by Malta;

(2) the contribution made by the facility to United States nonproliferation and export control objectives; and

(3) the feasibility of establishing comparable facilities in other countries identified by the Secretary of State pursuant to section 583 of the Foreign Assistance Act of 1961, as added by section 301.

(c) TREATMENT OF ASSISTANCE- Assistance under this section shall be considered as assistance under section 583(a) of the Foreign Assistance Act of 1961 (relating to transit interdiction), as added by section 301.

SEC. 305. EXCEPTION TO AUTHORITY TO CONDUCT INSPECTIONS UNDER THE CHEMICAL WEAPONS CONVENTION IMPLEMENTATION ACT OF 1998.

Section 303 of the Chemical Weapons Convention Implementation Act of 1998 (22 U.S.C. 6723) is amended by adding at the end the following new subsection:

`(c) EXCEPTION- The requirement under subsection (b)(2)(A) shall not apply to inspections of United States chemical weapons destruction facilities (as used within the meaning of part IV(C)(13) of the Verification Annex to the Convention).'.

TITLE IV--ANTITERRORISM ASSISTANCE

SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

Section 574(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2349aa-4(a)) is amended by striking `$9,840,000' and all that follows through the period and inserting the following: `$72,000,000 for fiscal year 2001 and $73,000,000 for fiscal year 2002.'.

TITLE V--INTEGRATED SECURITY ASSISTANCE PLANNING

Subtitle A--Establishment of a National Security Assistance Strategy

SEC. 501. NATIONAL SECURITY ASSISTANCE STRATEGY.

(a) MULTIYEAR PLAN- Not later than 180 days after the date of the enactment of this Act, and annually thereafter at the time of submission of the congressional presentation materials of the foreign operations appropriations budget request, the Secretary of State should submit to the appropriate committees of Congress a plan setting forth a National Security Assistance Strategy for the United States.

(b) ELEMENTS OF THE STRATEGY- The National Security Assistance Strategy should--

(1) set forth a multi-year plan for security assistance programs;

(2) be consistent with the National Security Strategy of the United States;

(3) be coordinated with the Secretary of Defense and the Chairman of the Joint Chiefs of Staff;

(4) be prepared, in consultation with other agencies, as appropriate;

(5) identify overarching security assistance objectives, including identification of the role that specific security assistance programs will play in achieving such objectives;

(6) identify a primary security assistance objective, as well as specific secondary objectives, for individual countries;

(7) identify, on a country-by-country basis, how specific resources will be allocated to accomplish both primary and secondary objectives;

(8) discuss how specific types of assistance, such as foreign military financing and international military education and training, will be combined at the country level to achieve United States objectives; and

(9) detail, with respect to each of the paragraphs (1) through (8), how specific types of assistance provided pursuant to the Arms Export Control Act and the Foreign Assistance Act of 1961 are coordinated with United States assistance programs managed by the Department of Defense and other agencies.

(c) COVERED ASSISTANCE- The National Security Assistance Strategy should cover assistance provided under--

(1) section 23 of the Arms Export Control Act (22 U.S.C. 2763);

(2) chapter 5 of part II of the Foreign Assistance Act of 1961 (22 U.S.C. 2347 et seq.); and

(3) section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321i).

Subtitle B--Allocations for Certain Countries

SEC. 511. SECURITY ASSISTANCE FOR NEW NATO MEMBERS.

(a) FOREIGN MILITARY FINANCING- Of the amounts made available for the fiscal years 2001 and 2002 under section 23 of the Arms Export Control Act (22 U.S.C. 2763), $30,300,000 for fiscal year 2001 and $35,000,000 for fiscal year 2002 are authorized to be available on a grant basis for all of the following countries: the Czech Republic, Hungary, and Poland.

(b) MILITARY EDUCATION AND TRAINING- Of the amounts made available for the fiscal years 2001 and 2002 to carry out chapter 5 of part II of the Foreign Assistance Act of 1961 (22 U.S.C. 2347 et seq.), $5,100,000 for fiscal year 2001 and $7,000,000 for fiscal year 2002 are authorized to be available for all of the following countries: the Czech Republic, Hungary, and Poland.

(c) SELECT PRIORITIES- In providing assistance under this section, the President shall give priority to supporting activities that are consistent with the objectives set forth in the following conditions of the Senate resolution of ratification for the Protocols to the North Atlantic Treaty of 1949 on the Accession of Poland, Hungary, and the Czech Republic:

(1) Condition (1)(A)(v), (vi), and (vii), relating to common threats, the core mission of NATO, and the capacity to respond to common threats.

(2) Condition (1)(B), relating to the fundamental importance of collective defense.

(3) Condition (1)(C), relating to defense planning, command structures, and force goals.

(4) Conditions (4)(B)(i) and (4)(B)(ii), relating to intelligence matters.

SEC. 512. INCREASED TRAINING ASSISTANCE FOR GREECE AND TURKEY.

(a) IN GENERAL- Of the amounts made available for the fiscal years 2001 and 2002 to carry out chapter 5 of part II of the Foreign Assistance Act of 1961 (22 U.S.C. 2347 et seq.)--

(1) $1,000,000 for fiscal year 2001 and $1,000,000 for fiscal year 2002 are authorized to be available for Greece; and

(2) $2,500,000 for fiscal year 2001 and $2,500,000 for fiscal year 2002 are authorized to be available for Turkey.

(b) USE FOR PROFESSIONAL MILITARY EDUCATION- Of the amounts available under paragraphs (1) and (2) of subsection (a) for fiscal year 2002, $500,000 of each such amount should be available for purposes of professional military education.

(c) USE FOR JOINT TRAINING- It is the sense of the Congress that, to the maximum extent practicable, amounts available under subsection (a) that are used in accordance with subsection (b) should be used for joint training of Greek and Turkish officers.

SEC. 513. ASSISTANCE FOR ISRAEL.

(a) DEFINITIONS- In this section:

(1) ESF ASSISTANCE- The term `ESF assistance' means assistance under chapter 4 of part II of the Foreign Assistance Act of 1961 (22 U.S.C. 2346 et seq.), relating to the economic support fund.

(2) FOREIGN MILITARY FINANCING PROGRAM- The term `Foreign Military Financing Program' means the program authorized by section 23 of the Arms Export Control Act (22 U.S.C. 2763).

(b) ESF ASSISTANCE-

(1) IN GENERAL- Of the amounts made available for each of the fiscal years 2001 and 2002 for ESF assistance, the amount specified in paragraph (2) for each such fiscal year is authorized to be made available for Israel.

(2) COMPUTATION OF AMOUNT- Subject to subsection (d), the amount referred to in paragraph (1) is equal to--

(A) the amount made available for ESF assistance for Israel for the preceding fiscal year, minus

(B) $120,000,000.

(c) FMF PROGRAM-

(1) IN GENERAL- Of the amount made available for each of the fiscal years 2001 and 2002 for assistance under the Foreign Military Financing Program, the amount specified in paragraph (2) for each such fiscal year is authorized to be made available on a grant basis for Israel.

(2) COMPUTATION OF AMOUNT- Subject to subsection (d), the amount referred to in paragraph (1) is equal to--

(A) the amount made available for assistance under the Foreign Military Financing Program for Israel for the preceding fiscal year, plus

(B) $60,000,000.

(3) DISBURSEMENT OF FUNDS- Funds authorized to be available for Israel under subsection (b)(1) and paragraph (1) of this subsection for fiscal year 2001 shall be disbursed not later than 30 days after the date of the enactment of an Act making appropriations for foreign operations, export financing, and related programs for fiscal year 2001, or October 31, 2000, whichever date is later.

(4) AVAILABILITY OF FUNDS FOR ADVANCED WEAPONS SYSTEMS- To the extent the Government of Israel requests that funds be used for such purposes, grants made available for Israel out of funds authorized to be available under paragraph (1) for Israel for fiscal year 2001 shall, as agreed by Israel and the United States, be available for advanced weapons systems, of which not less than $520,000,000 shall be available for the procurement in Israel of defense articles and defense services, including research and development.

(d) EXCLUSION OF RESCISSIONS AND SUPPLEMENTAL APPROPRIATIONS- For purposes of this section, the computation of amounts made available for a fiscal year shall not take into account any amount rescinded by an Act or any amount appropriated by an Act making supplemental appropriations for a fiscal year.

SEC. 514. ASSISTANCE FOR EGYPT.

(a) DEFINITIONS- In this section:

(1) ESF ASSISTANCE- The term `ESF assistance' means assistance under chapter 4 of part II of the Foreign Assistance Act of 1961 (22 U.S.C. 2346 et seq.), relating to the economic support fund.

(2) FOREIGN MILITARY FINANCING PROGRAM- The term `Foreign Military Financing Program' means the program authorized by section 23 of the Arms Export Control Act (22 U.S.C. 2763).

(b) ESF ASSISTANCE-

(1) IN GENERAL- Of the amounts made available for each of the fiscal years 2001 and 2002 for ESF assistance, the amount specified in paragraph (2) for each such fiscal year is authorized to be made available for Egypt.

(2) COMPUTATION OF AMOUNT- Subject to subsection (d), the amount referred to in paragraph (1) is equal to--

(A) the amount made available for ESF assistance for Egypt during the preceding fiscal year, minus

(B) $40,000,000.

(c) FMF PROGRAM- Of the amount made available for each of the fiscal years 2001 and 2002 for assistance under the Foreign Military Financing Program, $1,300,000,000 is authorized to be made available on a grant basis for Egypt.

(d) EXCLUSION OF RESCISSIONS AND SUPPLEMENTAL APPROPRIATIONS- For purposes of this section, the computation of amounts made available for a fiscal year shall not take into account any amount rescinded by an Act or any amount appropriated by an Act making supplemental appropriations for a fiscal year.

(e) DISBURSEMENT OF FUNDS- Funds estimated to be outlayed for Egypt under subsection (c) during fiscal year 2001 shall be disbursed to an interest-bearing account for Egypt in the Federal Reserve Bank of New York within 30 days of the date of the enactment of this Act, or by October 31, 2000, whichever is later, provided that--

(1) withdrawal of funds from such account shall be made only on authenticated instructions from the Defense Finance and Accounting Service of the Department of Defense;

(2) in the event such account is closed, the balance of the account shall be transferred promptly to the appropriations account for the Foreign Military Financing Program; and

(3) none of the interest accrued by such account should be obligated unless the Committee on Appropriations and the Committee on Foreign Relations of the Senate and the Committee on Appropriations and the Committee on International Relations of the House of Representatives are notified.

SEC. 515. SECURITY ASSISTANCE FOR CERTAIN COUNTRIES.

(a) FOREIGN MILITARY FINANCING- Of the amounts made available for the fiscal years 2001 and 2002 under section 23 of the Arms Export Control Act (22 U.S.C. 2763)--

(1) $18,200,000 for fiscal year 2001 and $20,500,000 for fiscal year 2002 are authorized to be available on a grant basis for all of the following countries: Estonia, Latvia, and Lithuania;

(2) $2,000,000 for fiscal year 2001 and $5,000,000 for fiscal year 2002 are authorized to be available on a grant basis for the Philippines;

(3) $4,500,000 for fiscal year 2001 and $5,000,000 for fiscal year 2002 are authorized to be available on a grant basis for Georgia;

(4) $3,000,000 for fiscal year 2001 and $3,500,000 for fiscal year 2002 are authorized to be available on a grant basis for Malta;

(5) $3,500,000 for fiscal year 2001 and $4,000,000 for fiscal year 2002 are authorized to be available on a grant basis for Slovenia;

(6) $8,400,000 for fiscal year 2001 and $8,500,000 for fiscal year 2002 are authorized to be available on a grant basis for Slovakia;

(7) $11,000,000 for fiscal year 2001 and $11,100,000 for fiscal year 2002 are authorized to be available on a grant basis for Romania;

(8) $8,500,000 for fiscal year 2001 and $8,600,000 for fiscal year 2002 are authorized to be available on a grant basis for Bulgaria; and

(9) $100,000,000 for fiscal year 2001 and $105,000,000 for fiscal year 2002 are authorized to be available on a grant basis for Jordan.

(b) IMET- Of the amounts made available for the fiscal years 2001 and 2002 to carry out chapter 5 of part II of the Foreign Assistance Act of 1961 (22 U.S.C. 2347 et seq.)--

(1) $2,300,000 for fiscal year 2001 and $4,000,000 for fiscal year 2002 are authorized to be available for all of the following countries: Estonia, Latvia, and Lithuania;

(2) $1,400,000 for fiscal year 2001 and $1,500,000 for fiscal year 2002 are authorized to be available for the Philippines;

(3) $475,000 for fiscal year 2001 and $1,000,000 for fiscal year 2002 are authorized to be available for Georgia;

(4) $200,000 for fiscal year 2001 and $1,000,000 for fiscal year 2002 are authorized to be available for Malta;

(5) $700,000 for fiscal year 2001 and $1,000,000 for fiscal year 2002 are authorized to be available for Slovenia;

(6) $700,000 for fiscal year 2001 and $1,000,000 for fiscal year 2002 are authorized to be available for Slovakia;

(7) $1,300,000 for fiscal year 2001 and $1,500,000 for fiscal year 2002 are authorized to be available for Romania; and

(8) $1,100,000 for fiscal year 2001 and $1,200,000 for fiscal year 2002 are authorized to be available for Bulgaria.

SEC. 516. BORDER SECURITY AND TERRITORIAL INDEPENDENCE.

(a) GUUAM COUNTRIES AND ARMENIA- For the purpose of carrying out section 499C of the Foreign Assistance Act of 1961 and assisting GUUAM countries and Armenia to strengthen national control of their borders and to promote the independence and territorial sovereignty of such countries, the following amounts are authorized to be made available for fiscal years 2001 and 2002:

(1) $5,000,000 for fiscal year 2001 and $20,000,000 for fiscal year 2002 are of the amounts made available under section 23 of the Arms Export Control Act (22 U.S.C. 2763).

(2) $2,000,000 for fiscal year 2001 and $10,000,000 for fiscal year 2002 of the amounts made available under chapter 9 of part II of the Foreign Assistance Act of 1961, as added by section 301.

(3) $500,000 for fiscal year 2001 and $5,000,000 for fiscal year 2002 of the amounts made available to carry out chapter 5 of part II of the Foreign Assistance Act of 1961 (22 U.S.C. 2347 et seq.).

(4) $1,000,000 for fiscal year 2001 and $2,000,000 for fiscal year 2002 of the amounts made available to carry out chapter 8 of part II of the Foreign Assistance Act.

(b) GUUAM COUNTRIES DEFINED- In this section, the term `GUUAM countries' means the group of countries that signed a protocol on quadrilateral cooperation on November 25, 1997, together with Uzbekistan.

TITLE VI--TRANSFERS OF NAVAL VESSELS

SEC. 601. AUTHORITY TO TRANSFER NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES.

(a) BRAZIL- The President is authorized to transfer to the Government of Brazil two `THOMASTON' class dock landing ships ALAMO (LSD 33) and HERMITAGE (LSD 34), and four `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 two `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 two `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 two `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). The authority granted by this subsection is in addition to that granted under section 1018(a)(9) of Public Law 106-65.

SEC. 602. INAPPLICABILITY OF AGGREGATE ANNUAL LIMITATION ON VALUE OF TRANSFERRED EXCESS DEFENSE ARTICLES.

The value of naval vessels authorized under section 601 to be transferred on a grant basis under section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j) shall not be included in the aggregate annual value of transferred excess defense articles which is subject to the aggregate annual limitation set forth in section 516(g) of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j(g)).

SEC. 603. COSTS OF TRANSFERS.

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

SEC. 604. CONDITIONS RELATING TO COMBINED LEASE-SALE TRANSFERS.

A transfer of a vessel on a combined lease-sale basis authorized by section 601 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 by the date required under 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 the 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. 605. FUNDING OF CERTAIN COSTS OF TRANSFERS.

There are 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 601. Funds authorized to be appropriated under the preceding sentence for the purpose described in that sentence may not be available for any other purpose.

SEC. 606. 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 601, that the country to which the vessel is transferred will 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. 607. 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 601 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. 608. EXPIRATION OF AUTHORITY.

The authority granted by section 601 shall expire 2 years after the date of the enactment of this Act.

TITLE VII--MISCELLANEOUS PROVISIONS

SEC. 701. UTILIZATION OF DEFENSE ARTICLES AND DEFENSE SERVICES.

Section 502 of the Foreign Assistance Act of 1961 (22 U.S.C. 2302) is amended in the first sentence by inserting `(including for antiterrorism and nonproliferation purposes)' after `internal security'.

SEC. 702. 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: `and, if so, a specification of those defense articles that were exported during the fiscal year covered by the report'.

SEC. 703. REPORT ON GOVERNMENT-TO-GOVERNMENT ARMS SALES END-USE MONITORING PROGRAM.

Not later than 180 days after the date of the enactment of this Act, the President shall prepare and transmit to the appropriate committees of Congress 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. 704. MTCR REPORT TRANSMITTALS.

For purposes of section 71(d) of the Arms Export Control Act (22 U.S.C. 2797(d)), the requirement that reports under that section shall be transmitted to the Congress shall be considered to be a requirement that such reports shall be transmitted to the Committee on International Relations of the House of Representatives and the Committee on Foreign Relations and the Committee on Banking, Housing and Urban Affairs of the Senate.

SEC. 705. STINGER MISSILES IN THE PERSIAN GULF REGION.

(a) PROHIBITION- Notwithstanding any other provision of law and except as provided in subsection (b), the United States may not sell or otherwise make available under the Arms Export Control Act or chapter 2 of part II of the Foreign Assistance Act of 1961 any Stinger ground-to-air missiles to any country bordering the Persian Gulf.

(b) ADDITIONAL TRANSFERS AUTHORIZED- In addition to other defense articles authorized to be transferred by section 581 of the Foreign Operations, Export Financing, and Related Programs Appropriation Act, 1990, the United States may sell or make available, under the Arms Export Control Act or chapter 2 of part II of the Foreign Assistance Act of 1961, Stinger ground-to-air missiles to any country bordering the Persian Gulf in order to replace, on a one-for-one basis, Stinger missiles previously furnished to such country if the Stinger missiles to be replaced are nearing the scheduled expiration of their shelf-life.

SEC. 706. SENSE OF THE CONGRESS REGARDING EXCESS DEFENSE ARTICLES.

It is the sense of the Congress that the President should make expanded use of the authority provided under section 21(a) of the Arms Export Control Act to sell excess defense articles by utilizing the flexibility afforded by section 47 of such Act to ascertain the `market value' of excess defense articles.

SEC. 707. 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 the fiscal years 2001 and 2002, 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. 708. SPACE COOPERATION WITH RUSSIAN PERSONS.

(a) ANNUAL CERTIFICATION-

(1) REQUIREMENT- The President shall submit each year to the appropriate committees of Congress, with respect to each Russian person described in paragraph (2), a certification that the reports required to be submitted to Congress during the preceding calendar year under section 2 of the Iran Nonproliferation Act of 2000 (Public Law 106-178) do not identify that person on account of a transfer to Iran of goods, services, or technology described in section 2(a)(1)(B) of such Act.

(2) APPLICABILITY- The certification requirement under paragraph (1) applies with respect to each Russian person that, as of the date of the certification, is a party to an agreement relating to commercial cooperation on MTCR equipment or technology with a United States person pursuant to an arms export license that was issued at any time since January 1, 2000.

(3) EXEMPTION- No activity or transfer which specifically has been the subject of a Presidential determination pursuant to section 5(a)(1), (2), or (3) of the Iran Nonproliferation Act of 2000 (Public Law 106-178) shall cause a Russian person to be considered as having been identified in the reports submitted during the preceding calendar year under section 2 of that Act for the purposes of the certification required under paragraph (1).

(4) COMMENCEMENT AND TERMINATION OF REQUIREMENT-

(A) TIMES FOR SUBMISSION- The President shall submit--

(i) the first certification under paragraph (1) not later than 60 days after the date of the enactment of this Act; and

(ii) each annual certification thereafter on the anniversary of the first submission.

(B) TERMINATION OF REQUIREMENT- No certification is required under paragraph (1) after termination of cooperation under the specific license, or 5 years after the date on which the first certification is submitted, whichever is the earlier date.

(b) TERMINATION OF EXISTING LICENSES- If, at any time after the issuance of a license under section 36(c) of the Arms Export Control Act relating to the use, development, or co-production of commercial rocket engine technology with a foreign person, the President determines that the foreign person has engaged in any action described in section 73(a)(1) of the Arms Export Control Act (22 U.S.C. 2797b(a)(1)) since the date the license was issued, the President may terminate the license.

(c) REPORT ON EXPORT LICENSING OF MTCR ITEMS UNDER $50,000,000- Section 71(d) of the Arms Export Control Act (22 U.S.C. 2797(d)) is amended by striking `Within 15 days' and all that follows through `MTCR Annex,' and inserting `Within 15 days after the issuance of a license (including any brokering license) for the export of items valued at less than $50,000,000 that are controlled under this Act pursuant to United States obligations under the Missile Technology Control Regime and are goods or services that are intended to support the design, utilization, development, or production of a space launch vehicle system listed in Category I of the MTCR Annex,'.

(d) DEFINITIONS- In this section:

(1) FOREIGN PERSON- The term `foreign person' has the meaning given the term in section 74(7) of the Arms Export Control Act (22 U.S.C. 2797c(7)).

(2) MTCR EQUIPMENT OR TECHNOLOGY- The term `MTCR equipment or technology' has the meaning given the term in section 74(5) of the Arms Export Control Act (22 U.S.C. 2797c(5)).

(3) PERSON- The term `person' has the meaning given the term in section 74(8) of the Arms Export Control Act (22 U.S.C. 2797c(8)).

(4) UNITED STATES PERSON- The term `United States person' has the meaning given the term in section 74(6) of the Arms Export Control Act (22 U.S.C. 2797c(6)).

SEC. 709. 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 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. 710. 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 five UH-60L helicopters to the Republic of Colombia in support of counternarcotics activities.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.

END