[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4919 Engrossed in House (EH)]
2d Session
H. R. 4919
_______________________________________________________________________
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.
106th CONGRESS
2d Session
H. R. 4919
_______________________________________________________________________
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.
This Act may be cited as the ``Defense and Security Assistance Act
of 2000''.
TITLE I--SECURITY ASSISTANCE
SEC. 101. ADDITIONS TO UNITED STATES WAR RESERVE STOCKPILES FOR ALLIES.
Section 514(b)(2) of the Foreign Assistance Act of 1961 (22 U.S.C.
2321h(b)(2)) is amended to read as follows:
``(2)(A) The value of such additions to stockpiles of
defense articles in foreign countries shall not exceed
$50,000,000 for fiscal year 2001.
``(B) Of the amount specified in subparagraph (A) for
fiscal year 2001, not more than $50,000,000 may be made
available for stockpiles in the Republic of Korea.''.
SEC. 102. TRANSFER OF CERTAIN OBSOLETE OR SURPLUS DEFENSE ARTICLES IN
THE WAR RESERVE STOCKPILES FOR ALLIES TO ISRAEL.
(a) Transfers to Israel.--
(1) Authority.--Notwithstanding section 514 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2321h), the President is
authorized to transfer to Israel, in return for concessions to
be negotiated by the Secretary of Defense, with the concurrence
of the Secretary of State, any or all of the items described in
paragraph (2).
(2) Items covered.--The items referred to in paragraph (1)
are munitions, equipment, and material such as armor,
artillery, automatic weapons ammunition, and missiles that--
(A) are obsolete or surplus items;
(B) are in the inventory of the Department of
Defense;
(C) are intended for use as reserve stocks for
Israel; and
(D) as of the date of the enactment of this Act,
are located in a stockpile in Israel.
(b) Concessions.--The value of concessions negotiated pursuant to
subsection (a) shall be at least equal to the fair market value of the
items transferred. The concessions may include cash compensation,
services, waiver of charges otherwise payable by the United States, and
other items of value.
(c) Advance Notification of Transfer.--Not less than 30 days before
making a transfer under the authority of this section, the President
shall transmit to the Committee on Foreign Relations of the Senate, and
the Committee on International Relations of the House of
Representatives a notification of the proposed transfer. The
notification shall identify the items to be transferred and the
concessions to be received.
(d) Expiration of Authority.--No transfer may be made under the
authority of this section 3 years after the date of the enactment of
this Act.
SEC. 103. EXCESS DEFENSE ARTICLES FOR MONGOLIA.
(a) Uses for Which Funds Are Available.--Notwithstanding section
516(e) of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j(e)),
during each of the fiscal years 2000 and 2001, funds available to the
Department of Defense may be expended for crating, packing, handling,
and transportation of excess defense articles transferred under the
authority of section 516 of that Act to Mongolia.
(b) Content of Congressional Notification.--Each notification
required to be submitted under section 516(f) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2321j(f)) with respect to a proposed transfer of
a defense article described in subsection (a) shall include an estimate
of the amount of funds to be expended under subsection (a) with respect
to that transfer.
SEC. 104. SENSE OF THE CONGRESS RELATING TO MILITARY EQUIPMENT FOR THE
PHILIPPINES.
(a) In General.--It is the sense of the Congress that the United
States Government should work with the Government of the Republic of
the Philippines to enable that Government to procure military equipment
that can be used to upgrade the capabilities and to improve the quality
of life of the armed forces of the Philippines.
(b) Military Equipment.--Military equipment described in subsection
(a) should include--
(1) naval vessels, including amphibious landing crafts, for
patrol, search-and-rescue, and transport;
(2) F-5 aircraft and other aircraft that can assist with
reconnaissance, search-and-rescue, and resupply;
(3) attack, transport, and search-and-rescue helicopters;
and
(4) vehicles and other personnel equipment.
SEC. 105. ANNUAL MILITARY ASSISTANCE REPORT.
Section 655(b)(3) of the Foreign Assistance Act of 1961 (22 U.S.C.
2415(b)(3)) is amended by inserting before the period at the end the
following: ``, including those defense articles that were exported''.
SEC. 106. REQUIREMENTS RELATING TO COUNTRY EXEMPTIONS FOR LICENSING OF
DEFENSE ITEMS FOR EXPORT TO FOREIGN COUNTRIES.
(a) Requirements of Exemption.--Section 38 of the Arms Export
Control Act (22 U.S.C. 2778) is amended by adding at the end the
following:
``(j) Requirements Relating to Country Exemptions for Licensing of
Defense Items for Export to Foreign Countries.--
``(1) Requirement for bilateral agreement.--
``(A) In general.--The President may utilize the
regulatory or other authority pursuant to this Act to
exempt a foreign country from the licensing
requirements of this Act with respect to exports of
defense items only if the United States Government has
concluded an agreement described in paragraph (2) with
the foreign country that is legally-binding as a matter
of domestic and international law on both the United
States and that country.
``(B) Exception.--The requirement to conclude a
bilateral agreement in accordance with subparagraph (A)
shall not apply with respect to an exemption for Canada
from the licensing requirements of this Act for the
export of defense items.
``(2) Requirements of bilateral agreement.--A bilateral
agreement referred to paragraph (1)--
``(A) shall, at a minimum, require the foreign
country, as necessary, to revise its policies and
practices, and promulgate or enact necessary
modifications to its laws and regulations to establish
an export control regime that is at least comparable to
United States law, regulation, and policy regarding--
``(i) handling of all United States-origin
defense items exported to the foreign country,
including prior written United States
Government approval for any reexports to third
countries;
``(ii) end-use and retransfer control
commitments, including securing binding end-use
and retransfer control commitments from all
end-users, including such documentation as is
needed in order to ensure compliance and
enforcement with respect to such United States-
origin defense items;
``(iii) establishment of a procedure
comparable to a `watchlist' (if such a
watchlist does not exist) and full cooperation
with United States Government law enforcement
and intelligence agencies to allow for sharing
of export and import documentation and
background information on foreign businesses
and individuals employed by or otherwise
connected to those businesses; and
``(iv) establishment of a list of
controlled defense items to ensure coverage of
those items to be exported under the exemption;
and
``(B) should, at a minimum, require the foreign
country, as necessary, to revise its policies and
practices, and promulgate or enact necessary
modifications to its laws and regulations to establish
an export control regime that is at least comparable to
United States law, regulation, and policy regarding--
``(i) controls on the export of tangible or
intangible technology, including via fax,
phone, and electronic media;
``(ii) appropriate controls on unclassified
information exported to foreign nationals;
``(iii) controls on arms trafficking and
brokering; and
``(iv) violations and penalties of export
control laws.
``(3) Advance notification.--Not less than 30 days before
authorizing an exemption for a foreign country from the
licensing requirements of this Act for the export of defense
items, the President shall transmit to the Committee on
International Relations of the House of Representatives and the
Committee on Foreign Relations of the Senate a notification
that--
``(A) the United States has entered into a
bilateral agreement with that foreign country
satisfying all requirements set forth in paragraph (2);
``(B) the foreign country has promulgated or
enacted all necessary modifications to its laws and
regulations to comply with its obligations under the
bilateral agreement with the United States; and
``(C) confirms that the appropriate congressional
committees will continue to receive notifications
pursuant to the authorities, procedures, and practices
of section 36 of this Act for defense exports to a
foreign country to which that section would apply and
without regard to any form of defense export licensing
exemption otherwise available for that country.
``(4) Definitions.--In this section:
``(A) Defense item.--The term `defense item' means
defense articles, defense services, and related
technical data.
``(B) Appropriate congressional committees.--The
term `appropriate congressional committees' means--
``(i) the Committee on International
Relations and the Committee on Appropriations
of the House of Representatives; and
``(ii) the Committee on Foreign Relations
and the Committee on Appropriations of the
Senate.''.
(b) Notification of Exemption.--Section 38(f) of the Arms Export
Control Act (22 U.S.C. 2778(f)) is amended--
(1) by inserting ``(1)'' after ``(f)''; and
(2) by adding at the end the following:
``(2) The President may not authorize an exemption for a foreign
country from the licensing requirements of this Act for the export of
defense items under subsection (j) or any other provision of this Act
until 45 days after the date on which the President has transmitted to
the Committee on International Relations of the House of
Representatives and the Committee on Foreign Relations of the Senate a
notification that includes--
``(A) a description of the scope of the exemption,
including a detailed summary of the defense articles, defense
services, and related technical data proposed to be exported
under the exemption; and
``(B) a determination by the Attorney General that the
bilateral agreement requires sufficient documentation relating
to the export of United States defense articles, defense
services, and related technical data under an exemption which
will be compiled and maintained in order to facilitate law
enforcement efforts to detect, prevent, and prosecute criminal
violations of any provision of this Act, including the efforts
on the part of countries and factions engaged in international
terrorism to illicitly acquire sophisticated United States
weaponry.''.
(c) Notification Relating to Export of Commercial Communications
Satellite.--Section 36(c)(1) of the Arms Export Control Act (22 U.S.C.
2776(c)(1)) is amended in the first sentence by inserting at the end
before the period the following: ``, except that a certification shall
not be required in the case of an application for a license for export
of a commercial communications satellite designated on the United
States Munitions List for launch from, and by nationals of, the United
States, or the territory of a member country of the North Atlantic
Treaty Organization (NATO), the Russian Federation, Ukraine, Australia,
Japan, or New Zealand''.
SEC. 107. REPORT ON GOVERNMENT-TO-GOVERNMENT ARMS SALES END-USE
MONITORING PROGRAM.
Not later than 90 days after the date of the enactment of this Act,
the President shall prepare and transmit to the Committee on
International Relations and the Committee on Foreign Relations of the
Senate a report that contains a summary of the status of the efforts of
the Defense Security Cooperation Agency to implement the End-Use
Monitoring Enhancement Plan relating to government-to-government
transfers of defense articles, defense services, and related
technologies.
SEC. 108. WAIVER OF CERTAIN COSTS.
Notwithstanding any other provision of law, the President may waive
the requirement to impose an appropriate charge for a proportionate
amount of any nonrecurring costs of research, development, and
production under section 21(e)(1)(B) of the Arms Export Control Act (22
U.S.C. 2761(e)(1)(B)) for the November 1999 sale of 5 UH-60L
helicopters to the Republic of Colombia in support of counternarcotics
activities.
TITLE II--TRANSFERS OF NAVAL VESSELS
SEC. 201. AUTHORITY TO TRANSFER NAVAL VESSELS TO CERTAIN FOREIGN
COUNTRIES.
(a) Brazil.--The President is authorized to transfer to the
Government of Brazil the ``THOMASTON'' class dock landing ships ALAMO
(LSD 33) and HERMITAGE (LSD 34) and the ``GARCIA'' class frigates
BRADLEY (FF 1041), DAVIDSON (FF 1045), SAMPLE (FF 1048), and ALBERT
DAVID (FF 1050). Such transfers shall be on a grant basis under section
516 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j).
(b) Chile.--The President is authorized to transfer to the
Government of the Chile the ``OLIVER HAZARD PERRY'' class guided
missile frigates WADSWORTH (FFG 9) and ESTOCIN (FFG 15). Such transfers
shall be on a combined lease-sale basis under sections 61 and 21 of the
Arms Export Control Act (22 U.S.C. 2796, 2761).
(c) Greece.--The President is authorized to transfer to the
Government of Greece the ``KNOX'' class frigates VREELAND (FF 1068) and
TRIPPE (FF 1075). Such transfers shall be on a grant basis under
section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j).
(d) Turkey.--The President is authorized to transfer to the
Government of Turkey the `OLIVER HAZARD PERRY` class guided missile
frigates JOHN A MOORE (FFG 19) and FLATLEY (FFG 21). Such transfers
shall be on a combined lease-sale basis under sections 61 and 21 of the
Arms Export Control Act (22 U.S.C. 2796, 2761).
SEC. 202. INAPPLICABILITY OF AGGREGATE ANNUAL LIMITATION ON VALUE OF
TRANSFERRED EXCESS DEFENSE ARTICLES.
In the case of the transfer of a naval vessel authorized under
section 201 of this Act to be transferred on a grant basis under
section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j),
the value of the vessel transferred shall not be included for purposes
of subsection (g) of that section in the aggregate value of excess
defense articles transferred to countries under that section in any
fiscal year.
SEC. 203. COSTS OF TRANSFERS.
Any expense incurred by the United States in connection with a
transfer authorized by this title shall be charged to the recipient.
SEC. 204. CONDITIONS RELATING TO COMBINED LEASE-SALE TRANSFERS.
A transfer of a vessel on a combined lease-sale basis authorized by
section 201 shall be made in accordance with the following
requirements:
(1) The President may initially transfer the vessel by
lease, with lease payments suspended for the term of the lease,
if the country entering into the lease for the vessel
simultaneously enters into a foreign military sales agreement
for the transfer of title to the vessel.
(2) The President may not deliver to the purchasing country
title to the vessel until the purchase price of the vessel
under such a foreign military sales agreement is paid in full.
(3) Upon payment of the purchase price in full under such a
sales agreement and delivery of title to the recipient country,
the President shall terminate the lease.
(4) If the purchasing country fails to make full payment of
the purchase price in accordance with the sales agreement--
(A) the sales agreement shall be immediately
terminated;
(B) the suspension of lease payments under the
lease shall be vacated; and
(C) the United States shall be entitled to retain
all funds received on or before the date of the
termination under the sales agreement, up to the amount
of lease payments due and payable under the lease and
all other costs required by the lease to be paid to
that date.
(5) If a sales agreement is terminated pursuant to
paragraph (4), the United States shall not be required to pay
any interest to the recipient country on any amount paid to the
United States by the recipient country under the sales
agreement and not retained by the United States under the
lease.
SEC. 205. FUNDING OF CERTAIN COSTS OF TRANSFERS.
There is authorized to be appropriated to the Defense Vessels
Transfer Program Account such funds as may be necessary to cover the
costs (as defined in section 502 of the Congressional Budget Act of
1974 (2 U.S.C. 661a)) of the lease-sale transfers authorized by section
201. Funds appropriated pursuant to the authorization of appropriations
under preceding sentence for the purpose described in such sentence may
not be available for any other purpose.
SEC. 206. REPAIR AND REFURBISHMENT IN UNITED STATES SHIPYARDS.
To the maximum extent practicable, the President shall require, as
a condition of the transfer of a vessel under section 201, that the
country to which the vessel is transferred have such repair or
refurbishment of the vessel as is needed, before the vessel joins the
naval forces of that country, performed at a shipyard located in the
United States, including a United States Navy shipyard.
SEC. 207. SENSE OF THE CONGRESS REGARDING TRANSFER OF NAVAL VESSELS ON
A GRANT BASIS.
It is the sense of the Congress that naval vessels authorized under
section 201 of this Act to be transferred to foreign countries on a
grant basis under section 516 of the Foreign Assistance Act of 1961 (22
U.S.C. 2321j) should be so transferred only if the United States
receives appropriate benefits from such countries for transferring the
vessel on a grant basis.
SEC. 208. EXPIRATION OF AUTHORITY.
The authority granted by section 201 of this Act shall expire 2
years after the date of the enactment of this Act.
Passed the House of Representatives July 24, 2000.
Attest:
Clerk.