[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3121 Enrolled Bill (ENR)]

        H.R.3121

                       One Hundred Fourth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

         Begun and held at the City of Washington on Wednesday,
   the third day of January, one thousand nine hundred and ninety-six


                                 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. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:
Sec. 1. Table of contents.

                TITLE I--DEFENSE AND SECURITY ASSISTANCE

               Chapter 1--Military and Related Assistance

Sec. 101. Terms of loans under the Foreign Military Financing program.
Sec. 102. Additional requirements under the Foreign Military Financing 
          program.
Sec. 103. Drawdown special authorities.
Sec. 104. Transfer of excess defense articles.
Sec. 105. Excess defense articles for certain European countries.

        Chapter 2--International Military Education and Training

Sec. 111. Assistance for Indonesia.
Sec. 112. Additional requirements.

                   Chapter 3--Antiterrorism Assistance

Sec. 121. Antiterrorism training assistance.
Sec. 122. Research and development expenses.

          Chapter 4--International Narcotics Control Assistance

Sec. 131. Additional requirements.
Sec. 132. Notification requirement.
Sec. 133. Waiver of restrictions for narcotics-related economic 
          assistance.

                       Chapter 5--Other Provisions

Sec. 141. Standardization of congressional review procedures for arms 
          transfers.
Sec. 142. Standardization of third country transfers of defense 
          articles.
Sec. 143. Increased standardization, rationalization, and 
          interoperability of assistance and sales programs.
Sec. 144. Definition of significant military equipment.
Sec. 145. Elimination of annual reporting requirement relating to the 
          Special Defense Acquisition Fund.
Sec. 146. Cost of leased defense articles that have been lost or 
          destroyed.
Sec. 147. Designation of major non-NATO allies.
Sec. 148. Annual military assistance report.
Sec. 149. Depleted uranium ammunition.
Sec. 150. End-use monitoring of defense articles and defense services.
Sec. 151. Brokering activities relating to commercial sales of defense 
          articles and services.
Sec. 152. Return and exchanges of defense articles previously 
          transferred pursuant to the Arms Export Control Act.
Sec. 153. National security interest determination to waive 
          reimbursement of depreciation for leased defense articles.
Sec. 154. Eligibility of Panama under the Arms Export Control Act.
Sec. 155. Publication of arms sales certifications.
Sec. 156. Release of information.
Sec. 157. Repeal of termination of provisions of the Nuclear 
          Proliferation Prevention Act of 1994; Presidential 
          determinations.

    TITLE II--TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES

Sec. 201. Authority to transfer naval vessels.
Sec. 202. Costs of transfers.
Sec. 203. Expiration of authority.
Sec. 204. Repair and refurbishment of vessels in United States 
          shipyards.

                TITLE I--DEFENSE AND SECURITY ASSISTANCE

               CHAPTER 1--MILITARY AND RELATED ASSISTANCE

SEC. 101. TERMS OF LOANS UNDER THE FOREIGN MILITARY FINANCING PROGRAM.

    Section 31(c) of the Arms Export Control Act (22 U.S.C. 2771(c)) is 
amended to read as follows:
    ``(c) Loans available under section 23 shall be provided at rates 
of interest that are not less than the current average market yield on 
outstanding marketable obligations of the United States of comparable 
maturities.''.

SEC. 102. ADDITIONAL REQUIREMENTS UNDER THE FOREIGN MILITARY FINANCING 
              PROGRAM.

    (a) Audit of Certain Private Firms.--Section 23 of the Arms Export 
Control Act (22 U.S.C. 2763) is amended by adding at the end the 
following new subsection:
    ``(f) For each fiscal year, the Secretary of Defense, as requested 
by the Director of the Defense Security Assistance Agency, shall 
conduct audits on a nonreimbursable basis of private firms that have 
entered into contracts with foreign governments under which defense 
articles, defense services, or design and construction services are to 
be procured by such firms for such governments from financing under 
this section.''.
    (b) Notification Requirement With Respect to Cash Flow Financing.--
Section 23 of such Act (22 U.S.C. 2763), as amended by this Act, is 
further amended by adding at the end the following new subsection:
    ``(g)(1) For each country and international organization that has 
been approved for cash flow financing under this section, any letter of 
offer and acceptance or other purchase agreement, or any amendment 
thereto, for a procurement of defense articles, defense services, or 
design and construction services in excess of $100,000,000 that is to 
be financed in whole or in part with funds made available under this 
Act or the Foreign Assistance Act of 1961 shall be submitted to the 
congressional committees specified in section 634A(a) of the Foreign 
Assistance Act of 1961 in accordance with the procedures applicable to 
reprogramming notifications under that section.
    ``(2) For purposes of this subsection, the term `cash flow 
financing' has the meaning given such term in subsection (d) of section 
25, as added by section 112(b) of Public Law 99-83.''.
    (c) Limitations on Use of Funds for Direct Commercial Contracts.--
Section 23 of such Act (22 U.S.C. 2763), as amended by this Act, is 
further amended by adding at the end the following new subsection:
    ``(h) Of the amounts made available for a fiscal year to carry out 
this section, not more than $100,000,000 for such fiscal year may be 
made available for countries other than Israel and Egypt for the 
purpose of financing the procurement of defense articles, defense 
services, and design and construction services that are not sold by the 
United States Government under this Act.''.
    (d) Annual Estimate and Justification for Sales Program.--Section 
25(a) of such Act (22 U.S.C. 2765(a)) is amended--
        (1) by striking the ``and'' at the end of paragraph (11);
        (2) by redesignating paragraph (12) as paragraph (13); and
        (3) by inserting after paragraph (11) the following:
        ``(12)(A) a detailed accounting of all articles, services, 
    credits, guarantees, or any other form of assistance furnished by 
    the United States to each country and international organization, 
    including payments to the United Nations, during the preceding 
    fiscal year for the detection and clearance of landmines, including 
    activities relating to the furnishing of education, training, and 
    technical assistance for the detection and clearance of landmines; 
    and
        ``(B) for each provision of law making funds available or 
    authorizing appropriations for demining activities described in 
    subparagraph (A), an analysis and description of the objectives and 
    activities undertaken during the preceding fiscal year, including 
    the number of personnel involved in performing such activities; 
    and''.

SEC. 103. DRAWDOWN SPECIAL AUTHORITIES.

    (a) Unforeseen Emergency Drawdown.--Section 506(a)(1) of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2318(a)(1)) is amended by 
striking ``$75,000,000'' and inserting ``$100,000,000''.
    (b) Additional Drawdown.--Section 506 of such Act (22 U.S.C. 2318) 
is amended--
        (1) in subsection (a)(2)(A), by striking ``defense articles 
    from the stocks'' and all that follows and inserting the following: 
    ``articles and services from the inventory and resources of any 
    agency of the United States Government and military education and 
    training from the Department of Defense, the President may direct 
    the drawdown of such articles, services, and military education and 
    training--
            ``(i) for the purposes and under the authorities of--
                ``(I) chapter 8 of part I (relating to international 
            narcotics control assistance);
                ``(II) chapter 9 of part I (relating to international 
            disaster assistance); or
                ``(III) the Migration and Refugee Assistance Act of 
            1962; or
            ``(ii) for the purpose of providing such articles, 
        services, and military education and training to Vietnam, 
        Cambodia, and Laos as the President determines are necessary--
                ``(I) to support cooperative efforts to locate and 
            repatriate members of the United States Armed Forces and 
            civilians employed directly or indirectly by the United 
            States Government who remain unaccounted for from the 
            Vietnam War; and
                ``(II) to ensure the safety of United States Government 
            personnel engaged in such cooperative efforts and to 
            support Department of Defense-sponsored humanitarian 
            projects associated with such efforts.'';
        (2) in subsection (a)(2)(B), by striking ``$75,000,000'' and 
    all that follows and inserting ``$150,000,000 in any fiscal year of 
    such articles, services, and military education and training may be 
    provided pursuant to subparagraph (A) of this paragraph--
            ``(i) not more than $75,000,000 of which may be provided 
        from the drawdown from the inventory and resources of the 
        Department of Defense;
            ``(ii) not more than $75,000,000 of which may be provided 
        pursuant to clause (i)(I) of such subparagraph; and
            ``(iii) not more than $15,000,000 of which may be provided 
        to Vietnam, Cambodia, and Laos pursuant to clause (ii) of such 
        subparagraph.''; and
        (3) in subsection (b)(1), by adding at the end the following: 
    ``In the case of drawdowns authorized by subclauses (I) and (III) 
    of subsection (a)(2)(A)(i), notifications shall be provided to 
    those committees at least 15 days in advance of the drawdowns in 
    accordance with the procedures applicable to reprogramming 
    notifications under section 634A.''.
    (c) Notice to Congress of Exercise of Special Authorities.--Section 
652 of such Act (22 U.S.C. 2411) is amended by striking ``prior to the 
date'' and inserting ``before''.

SEC. 104. TRANSFER OF EXCESS DEFENSE ARTICLES.

    (a) In General.--Section 516 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2321j) is amended to read as follows:

``SEC. 516. AUTHORITY TO TRANSFER EXCESS DEFENSE ARTICLES.

    ``(a) Authorization.--The President is authorized to transfer 
excess defense articles under this section to countries for which 
receipt of such articles was justified pursuant to the annual 
congressional presentation documents for military assistance programs, 
or for programsunder chapter 8 of part I of this Act, submitted under 
section 634 of this Act, or for which receipt of such articles was 
separately justified to the Congress, for the fiscal year in which the 
transfer is authorized.
    ``(b) Limitations on Transfers.--(1) The President may transfer 
excess defense articles under this section only if--
        ``(A) such articles are drawn from existing stocks of the 
    Department of Defense;
        ``(B) funds available to the Department of Defense for the 
    procurement of defense equipment are not expended in connection 
    with the transfer;
        ``(C) the transfer of such articles will not have an adverse 
    impact on the military readiness of the United States;
        ``(D) with respect to a proposed transfer of such articles on a 
    grant basis, such a transfer is preferable to a transfer on a sales 
    basis, after taking into account the potential proceeds from, and 
    likelihood of, such sales, and the comparative foreign policy 
    benefits that may accrue to the United States as the result of a 
    transfer on either a grant or sales basis;
        ``(E) the President determines that the transfer of such 
    articles will not have an adverse impact on the national technology 
    and industrial base and, particularly, will not reduce the 
    opportunities of entities in the national technology and industrial 
    base to sell new or used equipment to the countries to which such 
    articles are transferred; and
        ``(F) the transfer of such articles is consistent with the 
    policy framework for the Eastern Mediterranean established under 
    section 620C of this Act.
    ``(2) Accordingly, for the four-year period beginning on October 1, 
1996, the President shall ensure that excess defense articles offered 
to Greece and Turkey under this section will be made available 
consistent with the manner in which the President made available such 
excess defense articles during the four-year period that began on 
October 1, 1992, pursuant to section 573(e) of the Foreign Operations, 
Export Financing, and Related Programs Appropriations Act, 1990.
    ``(c) Terms of Transfers.--
        ``(1) No cost to recipient country.--Excess defense articles 
    may be transferred under this section without cost to the recipient 
    country.
        ``(2) Priority.--Notwithstanding any other provision of law, 
    the delivery of excess defense articles under this section to 
    member countries of the North Atlantic Treaty Organization (NATO) 
    on the southern and southeastern flank of NATO and to major non-
    NATO allies on such southern and southeastern flank shall be given 
    priority to the maximum extent feasible over the delivery of such 
    excess defense articles to other countries.
    ``(d) Waiver of Requirement for Reimbursement of Department of 
Defense Expenses.--Section 632(d) shall not apply with respect to 
transfers of excess defense articles (including transportation and 
related costs) under this section.
    ``(e) Transportation and Related Costs.--
        ``(1) In general.--Except as provided in paragraph (2), funds 
    available to the Department of Defense may not be expended for 
    crating, packing, handling, and transportation of excess defense 
    articles transferred under the authority of this section.
        ``(2) Exception.--The President may provide for the 
    transportation of excess defense articles without charge to a 
    country for the costs of such transportation if--
            ``(A) it is determined that it is in the national interest 
        of the United States to do so;
            ``(B) the recipient is a developing country receiving less 
        than $10,000,000 of assistance under chapter 5 of this part of 
        this Act (relating to international military education and 
        training) or section 23 of the Arms Export Control Act (22 
        U.S.C. 2763; relating to the Foreign Military Financing 
        program) in the fiscal year in which the transportation is 
        provided;
            ``(C) the total weight of the transfer does not exceed 
        25,000 pounds; and
            ``(D) such transportation is accomplished on a space 
        available basis.
    ``(f) Advance Notification to Congress for Transfer of Certain 
Excess Defense Articles.--
        ``(1) In general.--The President may not transfer excess 
    defense articles that are significant military equipment (as 
    defined in section 47(9) of the Arms Export Control Act) or excess 
    defense articles valued (in terms of original acquisition cost) at 
    $7,000,000 or more, under this section or under the Arms Export 
    Control Act (22 U.S.C. 2751 et seq.) until 30 days after the date 
    on which the President has provided notice of the proposed transfer 
    to the congressional committees specified in section 634A(a) in 
    accordance with procedures applicable to reprogramming 
    notifications under that section.
        ``(2) Contents.--Such notification shall include--
            ``(A) a statement outlining the purposes for which the 
        article is being provided to the country, including whether 
        such article has been previously provided to such country;
            ``(B) an assessment of the impact of the transfer on the 
        military readiness of the United States;
            ``(C) an assessment of the impact of the transfer on the 
        national technology and industrial base and, particularly, the 
        impact on opportunities of entities in the national technology 
        and industrial base to sell new or used equipment to the 
        countries to which such articles are to be transferred; and
            ``(D) a statement describing the current value of such 
        article and the value of such article at acquisition.
    ``(g) Aggregate Annual Limitation.--
        ``(1) In general.--The aggregate value of excess defense 
    articles transferred to countries under this section in any fiscal 
    year may not exceed $350,000,000.
        ``(2) Effective date.--The limitation contained in paragraph 
    (1) shall apply only with respect to fiscal years beginning after 
    fiscal year 1996.
    ``(h) Congressional Presentation Documents.--Documents described in 
subsection (a) justifying the transfer of excess defense articles shall 
include an explanation of the general purposes of providing excess 
defense articles as well as a table which provides an aggregate annual 
total of transfers of excess defense articles in the preceding year by 
country in terms of offers and actual deliveries and in terms of 
acquisition cost and current value. Such table shall indicate whether 
such excess defense articles were provided on a grant or sale basis.
    ``(i) Excess Coast Guard Property.--For purposes of this section, 
the term `excess defense articles' shall be deemed to include excess 
property of the Coast Guard, and the term `Department of Defense' shall 
be deemed, with respect to such excess property, to include the Coast 
Guard.''.
    (b) Conforming Amendments.--
        (1) Arms export control act.--Section 21(k) of the Arms Export 
    Control Act (22 U.S.C. 2761(k)) is amended by striking ``the 
    President shall'' and all that follows and inserting the following: 
    ``the President shall determine that the sale of such articles will 
    not have an adverse impact on the national technology and 
    industrial base and, particularly, will not reduce the 
    opportunities of entities in the national technology and industrial 
    base to sell new or used equipment to the countries to which such 
    articles are transferred.''.
        (2) Repeals.--The following provisions of law are hereby 
    repealed:
            (A) Section 502A of the Foreign Assistance Act of 1961 (22 
        U.S.C. 2303).
            (B) Sections 517 through 520 of the Foreign Assistance Act 
        of 1961 (22 U.S.C. 2321k through 2321n).
            (C) Section 31(d) of the Arms Export Control Act (22 U.S.C. 
        2771(d)).

SEC. 105. EXCESS DEFENSE ARTICLES FOR CERTAIN EUROPEAN COUNTRIES.

    Notwithstanding section 516(e) of the Foreign Assistance Act of 
1961, as added by this Act, during each of the fiscal years 1996 and 
1997, funds available to the Department of Defense may be expended for 
crating, packing, handling, and transportation of excess defense 
articles transferred under the authority of section 516 of such Act to 
countries that are eligible to participate in the Partnership for Peace 
and that are eligible for assistance under the Support for East 
European Democracy (SEED) Act of 1989.

        CHAPTER 2--INTERNATIONAL MILITARY EDUCATION AND TRAINING

SEC. 111. ASSISTANCE FOR INDONESIA.

    Funds made available for fiscal years 1996 and 1997 to carry out 
chapter 5 of part II of the Foreign Assistance Act of 1961 (22 U.S.C. 
2347 et seq.) may be obligated for Indonesia only for expanded military 
and education training that meets the requirements of clauses (i) 
through (iv) of the second sentence of section 541 of such Act (22 
U.S.C. 2347).

SEC. 112. ADDITIONAL REQUIREMENTS.

    (a) General Authority.--Section 541 of the Foreign Assistance Act 
of 1961 (22 U.S.C. 2347) is amended in the second sentence in the 
matter preceding clause (i) by inserting ``and individuals who are not 
members of the government'' after ``legislators''.
    (b) Exchange Training.--Section 544 of such Act (22 U.S.C. 2347c) 
is amended--
        (1) by striking ``In carrying out this chapter'' and inserting 
    ``(a) In carrying out this chapter''; and
        (2) by adding at the end the following new subsection:
    ``(b) The President may provide for the attendance of foreign 
military and civilian defense personnel at flight training schools and 
programs (including test pilot schools) in the United States without 
charge, and without charge to funds available to carry out this chapter 
(notwithstanding section 632(d) of this Act), if such attendance is 
pursuant to an agreement providing for the exchange of students on a 
one-for-one basis each fiscal year between those United States flight 
training schools and programs (including test pilot schools) and 
comparable flight training schools and programs of foreign 
countries.''.
    (c) Assistance for Certain High-Income Foreign Countries.--
        (1) Amendment to the foreign assistance act of 1961.--Chapter 5 
    of part II of such Act (22 U.S.C. 2347 et seq.) is amended by 
    adding at the end the following new section:

``SEC. 546. PROHIBITION ON GRANT ASSISTANCE FOR CERTAIN HIGH INCOME 
              FOREIGN COUNTRIES.

    ``(a) In General.--None of the funds made available for a fiscal 
year for assistance under this chapter may be made available for 
assistance on a grant basis for any of the high-income foreign 
countries described in subsection (b) for military education and 
training of military and related civilian personnel of such country.
    ``(b) High-Income Foreign Countries Described.--The high-income 
foreign countries described in this subsection are Austria, Finland, 
the Republic of Korea, Singapore, and Spain.''.
        (2) Amendment to the arms export control act.--Section 
    21(a)(1)(C) of the Arms Export Control Act (22 U.S.C. 
    2761(a)(1)(C)) is amended by inserting ``or to any high-income 
    foreign country (as described in that chapter)'' after ``Foreign 
    Assistance Act of 1961''.

                  CHAPTER 3--ANTITERRORISM ASSISTANCE

SEC. 121. ANTITERRORISM TRAINING ASSISTANCE.

    (a) In General.--Section 571 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2349aa) is amended by striking ``Subject to the provisions 
of this chapter'' and inserting ``Notwithstanding any other provision 
of law that restricts assistance to foreign countries (other than 
sections 502B and 620A of this Act)''.
    (b) Limitations.--Section 573 of such Act (22 U.S.C. 2349aa-2) is 
amended--
        (1) in the heading, by striking ``Specific Authorities and'';
        (2) by striking subsection (a);
        (3) by redesignating subsections (b) through (f) as subsections 
    (a) through (e), respectively; and
        (4) in subsection (c) (as redesignated)--
            (A) by striking paragraphs (1) and (2);
            (B) by redesignating paragraphs (3) through (5) as 
        paragraphs (1) through (3), respectively; and
            (C) by amending paragraph (2) (as redesignated) to read as 
        follows:
    ``(2)(A) Except as provided in subparagraph (B), funds made 
available to carry out this chapter shall not be made available for the 
procurement of weapons and ammunition.
    ``(B) Subparagraph (A) shall not apply to small arms and ammunition 
in categories I and III of the United States Munitions List that are 
integrally and directly related to antiterrorism training provided 
under this chapter if, at least 15 days before obligating those funds, 
the President notifies the appropriate congressional committees 
specified in section 634A of this Act in accordance with the procedures 
applicable to reprogramming notifications under such section.
    ``(C) The value (in terms of original acquisition cost) of all 
equipment and commodities provided under this chapter in any fiscal 
year may not exceed 25 percent of the funds made available to carry out 
this chapter for that fiscal year.''.
    (c) Annual Report.--Section 574 of such Act (22 U.S.C. 2349aa-3) is 
hereby repealed.
    (d) Technical Corrections.--Section 575 (22 U.S.C. 2349aa-4) and 
section 576 (22 U.S.C. 2349aa-5) of such Act are redesignated as 
sections 574 and 575, respectively.

SEC. 122. RESEARCH AND DEVELOPMENT EXPENSES.

    Funds made available for fiscal years 1996 and 1997 to carry out 
chapter 8 of part II of the Foreign Assistance Act of 1961 (22 U.S.C. 
2349aa et seq.; relating to antiterrorism assistance) may be made 
available to the Technical Support Working Group of the Department of 
State for research and development expenses related to contraband 
detection technologies or for field demonstrations of such technologies 
(whether such field demonstrations take place in the United States or 
outside the United States).

         CHAPTER 4--INTERNATIONAL NARCOTICS CONTROL ASSISTANCE

SEC. 131. ADDITIONAL REQUIREMENTS.

    (a) Policy and General Authorities.--Section 481(a) of the Foreign 
Assistance Act (22 U.S.C. 2291(a)) is amended--
        (1) in paragraph (1)--
            (A) by redesignating subparagraphs (D) through (F) as 
        subparagraphs (E) through (G), respectively; and
            (B) by inserting after subparagraph (C) the following:
        ``(D) International criminal activities, particularly 
    international narcotics trafficking, money laundering, and 
    corruption, endanger political and economic stability and 
    democratic development, and assistance for the prevention and 
    suppression of international criminal activities should be a 
    priority for the United States.''; and
        (2) in paragraph (4), by adding before the period at the end 
    the following: ``, or for other anticrime purposes''.
    (b) Contributions and Reimbursement.--Section 482(c) of that Act 
(22 U.S.C. 2291a(c)) is amended--
        (1) by striking ``Contribution by Recipient Country.--To'' and 
    inserting ``Contributions and Reimbursement.--(1) To''; and
        (2) by adding at the end the following new paragraphs:
    ``(2)(A) The President is authorized to accept contributions from 
foreign governments to carry out the purposes of this chapter. Such 
contributions shall be deposited as an offsetting collection to the 
applicable appropriation account and may be used under the same terms 
and conditions as funds appropriated pursuant to this chapter.
    ``(B) At the time of submission of the annual congressional 
presentation documents required by section 634(a), the President shall 
provide a detailed report on any contributions received in the 
preceding fiscal year, the amountof such contributions, and the 
purposes for which such contributions were used.
    ``(3) The President is authorized to provide assistance under this 
chapter on a reimbursable basis. Such reimbursements shall be deposited 
as an offsetting collection to the applicable appropriation and may be 
used under the same terms and conditions as funds appropriated pursuant 
to this chapter.''.
    (c) Implementation of Law Enforcement Assistance.--Section 482 of 
such Act (22 U.S.C. 2291a) is amended by adding at the end the 
following new subsections:
    ``(f) Treatment of Funds.--Funds transferred to and consolidated 
with funds appropriated pursuant to this chapter may be made available 
on such terms and conditions as are applicable to funds appropriated 
pursuant to this chapter. Funds so transferred or consolidated shall be 
apportioned directly to the bureau within the Department of State 
responsible for administering this chapter.
    ``(g) Excess Property.--For purposes of this chapter, the Secretary 
of State may use the authority of section 608, without regard to the 
restrictions of such section, to receive nonlethal excess property from 
any agency of the United States Government for the purpose of providing 
such property to a foreign government under the same terms and 
conditions as funds authorized to be appropriated for the purposes of 
this chapter.''.

SEC. 132. NOTIFICATION REQUIREMENT.

    (a) In General.--The authority of section 1003(d) of the National 
Narcotics Control Leadership Act of 1988 (21 U.S.C. 1502(d)) may be 
exercised with respect to funds authorized to be appropriated pursuant 
to the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) and with 
respect to the personnel of the Department of State only to the extent 
that the appropriate congressional committees have been notified 15 
days in advance in accordance with the reprogramming procedures 
applicable under section 634A of that Act (22 U.S.C. 2394-1).
    (b) Definition.--For purposes of this section, the term 
``appropriate congressional committees'' means the Committee on 
International Relations and the Committee on Appropriations of the 
House of Representatives and the Committee on Foreign Relations and the 
Committee on Appropriations of the Senate.

SEC. 133. WAIVER OF RESTRICTIONS FOR NARCOTICS-RELATED ECONOMIC 
              ASSISTANCE.

    For each of the fiscal years 1996 and 1997, narcotics-related 
assistance under part I of the Foreign Assistance Act of 1961 (22 
U.S.C. 2151 et seq.) may be provided notwithstanding any other 
provision of law that restricts assistance to foreign countries (other 
than section 490(e) or section 502B of that Act (22 U.S.C. 2291j(e) and 
2304)) if, at least 15 days before obligating funds for such 
assistance, the President notifies the appropriate congressional 
committees (as defined in section 481(e) of that Act (22 U.S.C. 
2291(e))) in accordance with the procedures applicable to reprogramming 
notifications under section 634A of that Act (22 U.S.C. 2394-1).

                      CHAPTER 5--OTHER PROVISIONS

SEC. 141. STANDARDIZATION OF CONGRESSIONAL REVIEW PROCEDURES FOR ARMS 
              TRANSFERS.

    (a) Third Country Transfers Under FMS Sales.--Section 3(d)(2) of 
the Arms Export Control Act (22 U.S.C. 2753(d)(2)) is amended--
        (1) in subparagraph (A), by striking ``, as provided for in 
    sections 36(b)(2) and 36(b)(3) of this Act'';
        (2) in subparagraph (B), by striking ``law'' and inserting 
    ``joint resolution''; and
        (3) by adding at the end the following:
    ``(C) If the President states in his certification under 
subparagraph (A) or (B) that an emergency exists which requires that 
consent to the proposed transfer become effective immediately in the 
national security interests of the United States, thus waiving the 
requirements of that subparagraph, the President shall set forth in the 
certification a detailed justification for his determination, including 
a description of the emergency circumstances which necessitate 
immediate consent to the transfer and a discussion of the national 
security interests involved.
    ``(D)(i) Any joint resolution under this paragraph shall be 
considered in the Senate in accordance with the provisions of section 
601(b) of the International Security Assistance and Arms Export Control 
Act of 1976.
    ``(ii) For the purpose of expediting the consideration and 
enactment of joint resolutions under this paragraph, a motion to 
proceed to the consideration of any such joint resolution after it has 
been reported by the appropriate committee shall be treated as highly 
privileged in the House of Representatives.''.
    (b) Third Country Transfers Under Commercial Sales.--Section 
3(d)(3) of such Act (22 U.S.C. 2753(d)(3)) is amended--
        (1) by inserting ``(A)'' after ``(3)'';
        (2) in the first sentence--
            (A) by striking ``at least 30 calendar days''; and
            (B) by striking ``report'' and inserting ``certification''; 
        and
        (3) by striking the last sentence and inserting the following: 
    ``Such certification shall be submitted--
        ``(i) at least 15 calendar days before such consent is given in 
    the case of a transfer to a country which is a member of the North 
    Atlantic Treaty Organization or Australia, Japan, or New Zealand; 
    and
        ``(ii) at least 30 calendar days before such consent is given 
    in the case of a transfer to any other country,
unless the President states in his certification that an emergency 
exists which requires that consent to the proposed transfer become 
effective immediately in the national security interests of the United 
States. If the President states in his certification that such an 
emergency exists (thus waiving the requirements of clause (i) or (ii), 
as the case may be, and of subparagraph (B)) the President shall set 
forth in the certification a detailed justification for his 
determination, including a description of the emergency circumstances 
which necessitate that consent to the proposed transfer become 
effective immediately and a discussion of the national security 
interests involved.
    ``(B) Consent to a transfer subject to subparagraph (A) shall 
become effective after the end of the 15-day or 30-day period specified 
in subparagraph (A)(i) or (ii), as the case may be, only if the 
Congress does not enact, within that period, a joint resolution 
prohibiting the proposed transfer.
    ``(C)(i) Any joint resolution under this paragraph shall be 
considered in the Senate in accordance with the provisions of section 
601(b) of the International Security Assistance and Arms Export Control 
Act of 1976.
    ``(ii) For the purpose of expediting the consideration and 
enactment of joint resolutions under this paragraph, a motion to 
proceed to the consideration of any such joint resolution after it has 
been reported by the appropriate committee shall be treated as highly 
privileged in the House of Representatives.''.
    (c) Commercial Sales.--Section 36(c)(2) of such Act (22 U.S.C. 
2776(c)(2)) is amended by amending subparagraphs (A) and (B) to read as 
follows:
        ``(A) in the case of a license for an export to the North 
    Atlantic Treaty Organization, any member country of that 
    Organization or Australia, Japan, or New Zealand, shall not be 
    issued until at least 15 calendar days after the Congress receives 
    such certification, and shall not be issued then if the Congress, 
    within that 15-day period, enacts a joint resolution prohibiting 
    the proposed export; and
        ``(B) in the case of any other license, shall not be issued 
    until at least 30 calendar days after the Congress receives such 
    certification, and shall not be issued then if the Congress, within 
    that 30-day period, enacts a joint resolution prohibiting the 
    proposed export.''.
    (d) Commercial Manufacturing Agreements.--Section 36(d) of such Act 
(22 U.S.C. 2776(d)) is amended--
        (1) by inserting ``(1)'' after ``(d)'';
        (2) by striking ``for or in a country not a member of the North 
    Atlantic Treaty Organization''; and
        (3) by adding at the end the following:
    ``(2) A certification under this subsection shall be submitted--
        ``(A) at least 15 days before approval is given in the case of 
    an agreement for or in a country which is a member of the North 
    Atlantic Treaty Organization or Australia, Japan, or New Zealand; 
    and
        ``(B) at least 30 days before approval is given in the case of 
    an agreement for or in any other country;
unless the President states in his certification that an emergency 
exists which requires the immediate approval of the agreement in the 
national security interests of the United States.
    ``(3) If the President states in his certification that an 
emergency exists which requires the immediate approval of the agreement 
in the national security interests of the United States, thus waiving 
the requirements of paragraph (4), he shall set forth in the 
certification a detailed justification for his determination, including 
a description of the emergency circumstances which necessitate the 
immediate approval of the agreement and a discussion of the national 
security interests involved.
    ``(4) Approval for an agreement subject to paragraph (1) may not be 
given under section 38 if the Congress, within the 15-day or 30-day 
period specified in paragraph (2)(A) or (B), as the case may be, enacts 
a joint resolution prohibiting such approval.
    ``(5)(A) Any joint resolution under paragraph (4) shall be 
considered in the Senate in accordance with the provisions of section 
601(b) of the International Security Assistance and Arms Export Control 
Act of 1976.
    ``(B) For the purpose of expediting the consideration and enactment 
of joint resolutions under paragraph (4), a motion to proceed to the 
consideration of any such joint resolution after it has been reported 
by the appropriatecommittee shall be treated as highly privileged in 
the House of Representatives.''.
    (e) Government-to-Government Leases.--
        (1) Congressional review period.--Section 62 of such Act (22 
    U.S.C. 2796a) is amended--
            (A) in subsection (a), by striking ``Not less than 30 days 
        before'' and inserting ``Before'';
            (B) in subsection (b)--
                (i) by striking ``determines, and immediately reports 
            to the Congress'' and inserting ``states in his 
            certification''; and
                (ii) by adding at the end of the subsection the 
            following: ``If the President states in his certification 
            that such an emergency exists, he shall set forth in the 
            certification a detailed justification for his 
            determination, including a description of the emergency 
            circumstances which necessitate that the lease be entered 
            into immediately and a discussion of the national security 
            interests involved.''; and
            (C) by adding at the end of the section the following:
    ``(c) The certification required by subsection (a) shall be 
transmitted--
        ``(1) not less than 15 calendar days before the agreement is 
    entered into or renewed in the case of an agreement with the North 
    Atlantic Treaty Organization, any member country of that 
    Organization or Australia, Japan, or New Zealand; and
        ``(2) not less than 30 calendar days before the agreement is 
    entered into or renewed in the case of an agreement with any other 
    organization or country.''.
        (2) Congressional disapproval.--Section 63(a) of such Act (22 
    U.S.C. 2796b(a)) is amended--
            (A) by striking ``(a)(1)'' and inserting ``(a)'';
            (B) by striking ``30 calendar days after receiving the 
        certification with respect to that proposed agreement pursuant 
        to section 62(a),'' and inserting ``the 15-day or 30-day period 
        specified in section 62(c) (1) or (2), as the case may be,''; 
        and
            (C) by striking paragraph (2).
    (f) Effective Date.--The amendments made by this section apply with 
respect to certifications required to be submitted on or after the date 
of the enactment of this Act.

SEC. 142. STANDARDIZATION OF THIRD COUNTRY TRANSFERS OF DEFENSE 
              ARTICLES.

    Section 3 of the Arms Export Control Act (22 U.S.C. 2753) is 
amended by inserting after subsection (a) the following new subsection:
    ``(b) The consent of the President under paragraph (2) of 
subsection (a) or under paragraph (1) of section 505(a) of the Foreign 
Assistance Act of 1961 (as it relates to subparagraph (B) of such 
paragraph) shall not be required for the transfer by a foreign country 
or international organization of defense articles sold by the United 
States under this Act if--
        ``(1) such articles constitute components incorporated into 
    foreign defense articles;
        ``(2) the recipient is the government of a member country of 
    the North Atlantic Treaty Organization, the Government of 
    Australia, the Government of Japan, or the Government of New 
    Zealand;
        ``(3) the recipient is not a country designated under section 
    620A of the Foreign Assistance Act of 1961;
        ``(4) the United States-origin components are not--
            ``(A) significant military equipment (as defined in section 
        47(9));
            ``(B) defense articles for which notification to Congress 
        is required under section 36(b); and
            ``(C) identified by regulation as Missile Technology 
        Control Regime items; and
        ``(5) the foreign country or international organization 
    provides notification of the transfer of the defense articles to 
    the United States Government not later than 30 days after the date 
    of such transfer.''.

SEC. 143. INCREASED STANDARDIZATION, RATIONALIZATION, AND 
              INTEROPERABILITY OF ASSISTANCE AND SALES PROGRAMS.

    Paragraph (6) of section 515(a) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2321i(a)(6)) is amended by striking ``among members of 
the North Atlantic Treaty Organization and with the Armed Forces of 
Japan, Australia, and New Zealand''.

SEC. 144. DEFINITION OF SIGNIFICANT MILITARY EQUIPMENT.

    Section 47 of the Arms Export Control Act (22 U.S.C. 2794) is 
amended--
        (1) in paragraph (7), by striking ``and'' at the end;
        (2) in paragraph (8), by striking the period at the end and 
    inserting ``; and''; and
        (3) by adding at the end the following new paragraph:
    ``(9) `significant military equipment' means articles--
        ``(A) for which special export controls are warranted because 
    of the capacity of such articles for substantial military utility 
    or capability; and
        ``(B) identified on the United States Munitions List.''.

SEC. 145. ELIMINATION OF ANNUAL REPORTING REQUIREMENT RELATING TO THE 
              SPECIAL DEFENSE ACQUISITION FUND.

    (a) In General.--Section 53 of the Arms Export Control Act (22 
U.S.C. 2795b) is hereby repealed.
    (b) Conforming Amendment.--Section 51(a)(4) of such Act (22 U.S.C. 
2795(a)(4)) is amended--
        (1) by striking ``(A)''; and
        (2) by striking subparagraph (B).

SEC. 146. COST OF LEASED DEFENSE ARTICLES THAT HAVE BEEN LOST OR 
              DESTROYED.

    Section 61(a)(4) of the Arms Export Control Act (22 U.S.C. 
2796(a)(4)) is amended by striking ``and the replacement cost'' and all 
that follows and inserting the following: ``and, if the articles are 
lost or destroyed while leased--
            ``(A) in the event the United States intends to replace the 
        articles lost or destroyed, the replacement cost (less any 
        depreciation in the value) of the articles; or
            ``(B) in the event the United States does not intend to 
        replace the articles lost or destroyed, an amount not less than 
        the actual value (less any depreciation in the value) specified 
        in the lease agreement.''.

SEC. 147. DESIGNATION OF MAJOR NON-NATO ALLIES.

    (a) Designation.--
        (1) Notice to congress.--Chapter 2 of part II of the Foreign 
    Assistance Act of 1961 (22 U.S.C. 2311 et seq.), as amended by this 
    Act, is further amended by adding at the end the following new 
    section:

``SEC. 517. DESIGNATION OF MAJOR NON-NATO ALLIES.

    ``(a) Notice to Congress.--The President shall notify the Congress 
in writing at least 30 days before--
        ``(1) designating a country as a major non-NATO ally for 
    purposes of this Act and the Arms Export Control Act (22 U.S.C. 
    2751 et seq.); or
        ``(2) terminating such a designation.
    ``(b) Initial Designations.--Australia, Egypt, Israel, Japan, the 
Republic of Korea, and New Zealand shall be deemed to have been so 
designated by the President as of the effective date of this section, 
and the President is not required to notify the Congress of such 
designation of those countries.''.
        (2) Definition.--Section 644 of such Act (22 U.S.C. 2403) is 
    amended by adding at the end the following:
    ``(q) `Major non-NATO ally' means a country which is designated in 
accordance with section 517 as a major non-NATO ally for purposes of 
this Act and the Arms Export Control Act (22 U.S.C. 2751 et seq.).''.
        (3) Existing definitions.--(A) The last sentence of section 
    21(g) of the Arms Export Control Act (22 U.S.C. 2761(g)) is 
    repealed.
        (B) Section 65(d) of such Act (22 U.S.C. 2796d(d)) is amended--
            (i) by striking ``or major non-NATO''; and
            (ii) by striking out ``or a'' and all that follows through 
        ``Code''.
    (b) Cooperative Training Agreements.--Section 21(g) of the Arms 
Export Control Act (22 U.S.C. 2761(g)) is amended in the first sentence 
by striking ``similar agreements'' and all that follows through ``other 
countries'' and inserting ``similar agreements with countries''.

SEC. 148. ANNUAL MILITARY ASSISTANCE REPORT.

    Section 655 of the Foreign Assistance Act of 1961 (22 U.S.C. 2415) 
is amended to read as follows:

``SEC. 655. ANNUAL MILITARY ASSISTANCE REPORT.

    ``(a) Report Required.--Not later than February 1 of each year, the 
President shall transmit to the Congress an annual report for the 
fiscal year ending the previous September 30.
    ``(b) Information Relating to Military Assistance and Military 
Exports.--Each such report shall show the aggregate dollar value and 
quantity of defense articles (including excess defense articles), 
defense services, and international military education and training 
authorized by the United States, excluding that which is pursuant to 
activies reportable under title V of the National Security Act of 1947, 
to each foreign country and international organization. The report 
shall specify, by category, whether such defense articles--
        ``(1) were furnished by grant under chapter 2 or chapter 5 of 
    part II of this Act or under any other authority of law or by sale 
    under chapter 2 of the Arms Export Control Act; or
        ``(2) were licensed for export under section 38 of the Arms 
    Export Control Act.
    ``(c) Information Relating to Military Imports.--Each such report 
shall also include the total amount of military items manufactured 
outside the United States that were imported into the United States 
during the fiscal year covered by the report. For each country of 
origin the report shall show the type of item being imported and the 
total amount of the items.''.

SEC. 149. DEPLETED URANIUM AMMUNITION.

    Chapter 1 of part III of the Foreign Assistance Act of 1961 (22 
U.S.C. 2370 et seq.), is amended by adding at the end the following new 
section:

``SEC. 620G. DEPLETED URANIUM AMMUNITION.

    ``(a) Prohibition.--Except as provided in subsection (b), none of 
the funds made available to carry out this Act or any other Act may be 
made available to facilitate in any way the sale of M-833 antitank 
shells or any comparable antitank shells containing a depleted uranium 
penetrating component to any country other than--
        ``(1) a country that is a member of the North Atlantic Treaty 
    Organization;
        ``(2) a country that has been designated as a major non-NATO 
    ally (as defined in section 644(q)); or
        ``(3) Taiwan.
    ``(b) Exception.--The prohibition contained in subsection (a) shall 
not apply with respect to the use of fundsto facilitate the sale of 
antitank shells to a country if the President determines that to do so 
is in the national security interest of the United States.''.

SEC. 150. END-USE MONITORING OF DEFENSE ARTICLES AND DEFENSE SERVICES.

    (a) In General.--The Arms Export Control Act (22 U.S.C. 2751 et 
seq.) is amended by inserting after chapter 3 the following new 
chapter:

   ``CHAPTER 3A--END-USE MONITORING OF DEFENSE ARTICLES AND DEFENSE 
                                SERVICES

``SEC. 40A. END-USE MONITORING OF DEFENSE ARTICLES AND DEFENSE 
              SERVICES.

    ``(a) Establishment of Monitoring Program.--
        ``(1) In general.--In order to improve accountability with 
    respect to defense articles and defense services sold, leased, or 
    exported under this Act or the Foreign Assistance Act of 1961 (22 
    U.S.C. 2151 et seq.), the President shall establish a program which 
    provides for the end-use monitoring of such articles and services.
        ``(2) Requirements of program.--To the extent practicable, such 
    program--
            ``(A) shall provide for the end-use monitoring of defense 
        articles and defense services in accordance with the standards 
        that apply for identifying high-risk exports for regular end-
        use verification developed under section 38(g)(7) of this Act 
        (commonly referred to as the `Blue Lantern' program); and
            ``(B) shall be designed to provide reasonable assurance 
        that--
                ``(i) the recipient is complying with the requirements 
            imposed by the United States Government with respect to 
            use, transfers, and security of defense articles and 
            defense services; and
                ``(ii) such articles and services are being used for 
            the purposes for which they are provided.
    ``(b) Conduct of Program.--In carrying out the program established 
under subsection (a), the President shall ensure that the program--
        ``(1) provides for the end-use verification of defense articles 
    and defense services that incorporate sensitive technology, defense 
    articles and defense services that are particularly vulnerable to 
    diversion or other misuse, or defense articles or defense services 
    whose diversion or other misuse could have significant 
    consequences; and
        ``(2) prevents the diversion (through reverse engineering or 
    other means) of technology incorporated in defense articles.
    ``(c) Report to Congress.--Not later than 6 months after the date 
of the enactment of this section, and annually thereafter as a part of 
the annual congressional presentation documents submitted under section 
634 of the Foreign Assistance Act of 1961, the President shall transmit 
to the Congress a report describing the actions taken to implement this 
section, including a detailed accounting of the costs and number of 
personnel associated with the monitoring program.
    ``(d) Third Country Transfers.--For purposes of this section, 
defense articles and defense services sold, leased, or exported under 
this Act or the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) 
includes defense articles and defense services that are transferred to 
a third country or other third party.''.
    (b) Effective Date.--Section 40A of the Arms Export Control Act, as 
added by subsection (a), applies with respect to defense articles and 
defense services provided before or after the date of the enactment of 
this Act.

SEC. 151. BROKERING ACTIVITIES RELATING TO COMMERCIAL SALES OF DEFENSE 
              ARTICLES AND SERVICES.

    (a) In General.--Section 38(b)(1)(A) of the Arms Export Control Act 
(22 U.S.C. 2778(b)(1)(A)) is amended--
        (1) in the first sentence, by striking ``As prescribed in 
    regulations'' and inserting ``(i) As prescribed in regulations''; 
    and
        (2) by adding at the end the following new clause:
    ``(ii)(I) As prescribed in regulations issued under this section, 
every person (other than an officer or employee of the United States 
Government acting in official capacity) who engages in the business of 
brokering activities with respect to the manufacture, export, import, 
or transfer of any defense article or defense service designated by the 
President under subsection (a)(1), or in the business of brokering 
activities with respect to the manufacture, export, import, or transfer 
of any foreign defense article or defense service (as defined in 
subclause (IV)), shall register with the United States Government 
agency charged with the administration of this section, and shall pay a 
registration fee which shall be prescribed by such regulations.
    ``(II) Such brokering activities shall include the financing, 
transportation, freight forwarding, or taking of any other action that 
facilitates the manufacture, export, or import of a defense article or 
defense service.
    ``(III) No person may engage in the business of brokering 
activities described in subclause (I) without a license, issued in 
accordance with this Act, except that no license shall be required for 
such activities undertaken by or for an agency of the United States 
Government--
        ``(aa) for use by an agency of the United States Government; or
        ``(bb) for carrying out any foreign assistance or sales program 
    authorized by law and subject to the control of the President by 
    other means.
    ``(IV) For purposes of this clause, the term `foreign defense 
article or defense service' includes any non-United States defense 
article or defense service of a nature described on the United States 
Munitions List regardless of whether such article or service is of 
United States origin or whether such article or service contains United 
States origin components.''.
    (b) Effective Date.--Section 38(b)(1)(A)(ii) of the Arms Export 
Control Act, as added by subsection (a), shall apply with respect to 
brokering activities engaged in beginning on or after 120 days after 
the enactment of this Act.

SEC. 152. RETURN AND EXCHANGES OF DEFENSE ARTICLES PREVIOUSLY 
              TRANSFERRED PURSUANT TO THE ARMS EXPORT CONTROL ACT.

    (a) Repair of Defense Articles.--Section 21 of the Arms Export 
Control Act (22 U.S.C. 2761) is amended by adding at the end the 
following new subsection:
    ``(l) Repair of Defense Articles.--
        ``(1) In general.--The President may acquire a repairable 
    defense article from a foreign country or international 
    organization if such defense article--
            ``(A) previously was transferred to such country or 
        organization under this Act;
            ``(B) is not an end item; and
            ``(C) will be exchanged for a defense article of the same 
        type that is in the stocks of the Department of Defense.
        ``(2) Limitation.--The President may exercise the authority 
    provided in paragraph (1) only to the extent that the Department of 
    Defense--
            ``(A)(i) has a requirement for the defense article being 
        returned; and
            ``(ii) has available sufficient funds authorized and 
        appropriated for such purpose; or
            ``(B)(i) is accepting the return of the defense article for 
        subsequent transfer to another foreign government or 
        international organization pursuant to a letter of offer and 
        acceptance implemented in accordance with this Act; and
            ``(ii) has available sufficient funds provided by or on 
        behalf of such other foreign government or international 
        organization pursuant to a letter of offer and acceptance 
        implemented in accordance with this Act.
        ``(3) Requirement.--(A) The foreign government or international 
    organization receiving a new or repaired defense article in 
    exchange for a repairable defense article pursuant to paragraph (1) 
    shall, upon the acceptance by the United States Government of the 
    repairable defense article being returned, be charged the total 
    cost associated with the repair and replacement transaction.
        ``(B) The total cost charged pursuant to subparagraph (A) shall 
    be the same as that charged the United States Armed Forces for a 
    similar repair and replacement transaction, plus an administrative 
    surcharge in accordance with subsection (e)(1)(A) of this section.
        ``(4) Relationship to certain other provisions of law.--The 
    authority of the President to accept the return of a repairable 
    defense article as provided in subsection (a) shall not be subject 
    to chapter 137 of title 10, United States Code, or any other 
    provision of law relating to the conclusion of contracts.''.
    (b) Return of Defense Articles.--Section 21 of such Act (22 U.S.C. 
2761), as amended by this Act, is further amended by adding at the end 
the following new subsection:
    ``(m) Return of Defense Articles.--
        ``(1) In general.--The President may accept the return of a 
    defense article from a foreign country or international 
    organization if such defense article--
            ``(A) previously was transferred to such country or 
        organization under this Act;
            ``(B) is not significant military equipment (as defined in 
        section 47(9) of this Act); and
            ``(C) is in fully functioning condition without need of 
        repair or rehabilitation.
        ``(2) Limitation.--The President may exercise the authority 
    provided in paragraph (1) only to the extent that the Department of 
    Defense--
            ``(A)(i) has a requirement for the defense article being 
        returned; and
            ``(ii) has available sufficient funds authorized and 
        appropriated for such purpose; or
            ``(B)(i) is accepting the return of the defense article for 
        subsequent transfer to another foreign government or 
        international organization pursuant to a letter of offer and 
        acceptance implemented in accordance with this Act; and
            ``(ii) has available sufficient funds provided by or on 
        behalf of such other foreign government or international 
        organization pursuant to a letter of offer and acceptance 
        implemented in accordance with this Act.
        ``(3) Credit for transaction.--Upon acquisition and acceptance 
    by the United States Government of a defense article under 
    paragraph (1), the appropriate Foreign Military Sales account of 
    the provider shall be credited to reflect the transaction.
        ``(4) Relationship to certain other provisions of law.--The 
    authority of the President to accept the return of a defense 
    article as provided inparagraph (1) shall not be subject to chapter 
137 of title 10, United States Code, or any other provision of law 
relating to the conclusion of contracts.''.
    (c) Regulations.--Under the direction of the President, the 
Secretary of Defense shall promulgate regulations to implement 
subsections (l) and (m) of section 21 of the Arms Export Control Act, 
as added by this section.

SEC. 153. NATIONAL SECURITY INTEREST DETERMINATION TO WAIVE 
              REIMBURSEMENT OF DEPRECIATION FOR LEASED DEFENSE 
              ARTICLES.

    (a) In General.--Section 61(a) of the Arms Export Control Act (22 
U.S.C. 2796(a)) is amended--
        (1) in the second sentence, by striking ``, or to any defense 
    article which has passed three-quarters of its normal service 
    life''; and
        (2) by inserting after the second sentence the following new 
    sentence: ``The President may waive the requirement of paragraph 
    (4) for reimbursement of depreciation for any defense article which 
    has passed three-quarters of its normal service life if the 
    President determines that to do so is important to the national 
    security interest of the United States.''.
    (b) Effective Date.--The third sentence of section 61(a) of the 
Arms Export Control Act, as added by subsection (a)(2), shall apply 
only with respect to a defense article leased on or after the date of 
the enactment of this Act.

SEC. 154. ELIGIBILITY OF PANAMA UNDER THE ARMS EXPORT CONTROL ACT.

    The Government of the Republic of Panama shall be eligible to 
purchase defense articles and defense services under the Arms Export 
Control Act (22 U.S.C. 2751 et seq.), except as otherwise specifically 
provided by law.

SEC. 155. PUBLICATION OF ARMS SALES CERTIFICATIONS.

    Section 36 of the Arms Export Control Act (22 U.S.C. 2776) is 
amended by adding at the end the following new subsection:
    ``(e) The President shall cause to be published in the Federal 
Register, upon transmittal to the Speaker of the House of 
Representatives and to the chairman of the Committee on Foreign 
Relations of the Senate, the full unclassified text of each numbered 
certification submitted pursuant to subsection (b) and each 
notification of a proposed commercial sale submitted under subsection 
(c).''.

SEC. 156. RELEASE OF INFORMATION.

    Section 38(e) of the Arms Export Control Act (22 U.S.C. 2778(e)) is 
amended by inserting in the first sentence before the period at the end 
the following: ``, except that the names of the countries and the types 
and quantities of defense articles for which licenses are issued under 
this section shall not be withheld from public disclosure unless the 
President determines that the release of such information would be 
contrary to the national interest''.

SEC. 157. REPEAL OF TERMINATION OF PROVISIONS OF THE NUCLEAR 
              PROLIFERATION PREVENTION ACT OF 1994; PRESIDENTIAL 
              DETERMINATIONS.

    (a) Repeal.--Part D of the Nuclear Proliferation Prevention Act of 
1994 (part D of title VIII of the Foreign Relations Authorization Act, 
Fiscal Years 1994 and 1995; Public Law 103-236; 108 Stat. 525) is 
hereby repealed.
    (b) Judicial Review.--Section 824 of the Nuclear Proliferation 
Prevention Act of 1994 (22 U.S.C. 3201 note) is amended--
        (1) in subsection (c), by striking ``in writing after 
    opportunity for a hearing on the record'';
        (2) by striking subsection (e); and
        (3) by redesignating subsections (f) through (k) as subsections 
    (e) through (j), respectively.

    TITLE II--TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES

SEC. 201. AUTHORITY TO TRANSFER NAVAL VESSELS.

    (a) Egypt.--The Secretary of the Navy is authorized to transfer to 
the Government of Egypt the ``OLIVER HAZARD PERRY CLASS'' frigate 
GALLERY. Such transfer shall be on a sales basis under section 21 of 
the Arms Export Control Act (22 U.S.C. 2761; relating to the foreign 
military sales program).
    (b) Mexico.--The Secretary of the Navy is authorized to transfer to 
the Government of Mexico the ``KNOX'' class frigates STEIN (FF 1065) 
and MARVIN SHIELDS (FF 1066). Such transfers shall be on a sales basis 
under section 21 of the Arms Export Control Act (22 U.S.C. 2761; 
relating to the foreign military sales program).
    (c) New Zealand.--The Secretary of the Navy is authorized to 
transfer to the Government of New Zealand the ``STALWART'' class ocean 
surveillance ship TENACIOUS. Such transfer shall be on a sales basis 
under section 21 of the Arms Export Control Act (22 U.S.C. 2761; 
relating to the foreign military sales program).
    (d) Portugal.--The Secretary of the Navy is authorized to transfer 
to the Government of Portugal the ``STALWART'' class ocean surveillance 
ship AUDACIOUS. Such transfer shall be on a grant basis under section 
516 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j; relating to 
transfers of excess defense articles).
    (e) Taiwan.--The Secretary of the Navy is authorized to transfer to 
the Taipei Economic and Cultural Representative Office in the United 
States (which is the Taiwan instrumentality designated pursuant to 
section 10(a) of the Taiwan Relations Act) the following:
        (1) The ``KNOX'' class frigates AYLWIN (FF 1081), PHARRIS (FF 
    1094), and VALDEZ (FF 1096). Such transfers shall be on a sales 
    basis under section 21 of the Arms Export Control Act (22 U.S.C. 
    2761; relating to the foreign military sales program).
        (2) The ``NEWPORT'' class tank landing ship NEWPORT (LST 1179). 
    Such transfer shall be on a lease basis under section 61 of the 
    Arms Export Control Act (22 U.S.C. 2796).
    (f) Thailand.--The Secretary of the Navy is authorized to transfer 
to the Government of Thailand the ``KNOX'' class frigate OUELLET (FF 
1077). Such transfer shall be on a sales basis under section 21 of the 
Arms Export Control Act (22 U.S.C. 2761; relating to the foreign 
military sales program).

SEC. 202. 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. 203. EXPIRATION OF AUTHORITY.

    The authority granted by section 201 shall expire at the end of the 
2-year period beginning on the date of the enactment of this Act.

SEC. 204. REPAIR AND REFURBISHMENT OF VESSELS IN UNITED STATES 
              SHIPYARDS.

    The Secretary of the Navy shall require, to the maximum extent 
possible, as a condition of a transfer of a vessel under this title, 
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.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.