[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2901 Placed on Calendar Senate (PCS)]






                                                       Calendar No. 696
106th CONGRESS
  2d Session
                                S. 2901

                          [Report No. 106-351]

To authorize appropriations to carry out security assistance for fiscal 
                   year 2001, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 20, 2000

    Mr. Helms from the Committee on Foreign Relations, reported the 
    following original bill; which was read twice and placed on the 
                                calendar

_______________________________________________________________________

                                 A BILL


 
To authorize appropriations to carry out security assistance for fiscal 
                   year 2001, 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 ``Security Assistance Act of 2000''.

                TITLE I--MILITARY AND RELATED ASSISTANCE

             Subtitle A--Foreign Military Financing Program

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 for fiscal year 2001, 
the total amount of $3,627,000,000.

                      Subtitle B--Other Assistance

SEC. 111. DEFENSE DRAWDOWN SPECIAL AUTHORITIES.

    (a) Emergency Drawdown.--Section 506(a)(1) of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2318(a)(1)) is amended by striking 
``$100,000,000'' and inserting ``$150,000,000''.
    (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'' the first place it appears; 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. 112. INCREASED TRANSPORT AUTHORITY.

    Section 516(e)(2)(C) of the Foreign Assistance Act of 1961 (22 
U.S.C. 23321j(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 $65,000,000 for fiscal year 
2001 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 RELATING TO INTERNATIONAL MILITARY 
              EDUCATION AND TRAINING.

    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:

``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. GENERAL AUTHORITY.

    ``Notwithstanding any other provision of law that restricts 
assistance to foreign countries (other than sections 502B and 620A of 
this Act), the President is authorized to furnish, on such terms and 
conditions as the President may determine, assistance to foreign 
countries in order to enhance the ability of such countries to halt the 
proliferation of nuclear, chemical, and biological weapons, and 
advanced conventional weaponry. Such assistance may include training 
services and the provision of 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. 582. PURPOSES.

    ``Activities conducted under this chapter shall be 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; and
            ``(3) to accomplish the activities and objectives set forth 
        in sections 503 and 504 of the FREEDOM Support Act (Public Law 
        102-511).

``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 is authorized to be 
appropriated to the President to carry out this chapter $129,000,000 
for the fiscal year 2001.
    ``(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.''.

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

    Of the amount made available for fiscal year 2001 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 for the purpose of 
training and education of personnel from friendly countries in the 
United States.

SEC. 303. SCIENCE AND TECHNOLOGY CENTERS.

    (a) Authorization of Funds.--Of the amounts made available for 
fiscal year 2001 under chapter 9 of part II of the Foreign Assistance 
Act of 1961, as added by section 301, $59,000,000 is authorized to be 
available for each such year for science and technology centers in the 
independent states of the former Soviet Union.
    (b) Sense of the Senate.--It is the sense of the Senate, taking 
into account the obligation contained in section 1132 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 (as contained in division I of Public Law 105-277) 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: ``$73,000,000 for the 
fiscal year 2001.''.

            TITLE V--INTEGRATED SECURITY ASSISTANCE PLANNING

  Subtitle A--Establishment of a National Security Assistance Strategy

SEC. 501. NATIONAL SECURITY ASSISTANCE STRATEGY.

    (a) Requirement.--Not later than 180 days after the date of 
enactment of this Act, and annually thereafter in connection with 
congressional presentation materials of the foreign operations 
appropriations budget request, the Secretary of State shall submit to 
the appropriate committees of Congress a report setting forth a 
National Security Assistance Strategy for the United States.
    (b) Elements of the Strategy.--The strategy shall--
            (1) set forth a 5-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) identify overarching security assistance objectives, 
        including identification of the role that specific security 
        assistance programs will play in achieving such objectives;
            (5) identify a primary security assistance objective, as 
        well as specific secondary objectives, for individual 
        countries;
            (6) identify, on a country-by-country basis, how specific 
        resources will be allocated to accomplish both primary and 
        secondary objectives;
            (7) 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
            (8) detail, with respect to each of the paragraphs (1) 
        through (7), how specific types of assistance provided pursuant 
        to the Arms Export Control Act and 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 
shall cover assistance provided under--
            (1) section 23 of the Arms Export Control Act (22 U.S.C. 
        2763);
            (2) chapters 5, 8, and 9 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).

SEC. 502. SECURITY ASSISTANCE SURVEYS.

    (a) Utilization.--The Secretary of State shall utilize security 
assistance surveys in preparation of the National Security Assistance 
Strategy required pursuant to section 501 of this Act.
    (b) Funding.--Of the amounts made available for fiscal year 2001 
under section 23 of the Arms Export Control Act (22 U.S.C. 2763), 
$2,000,000 is authorized to be available to the Secretary of State to 
conduct security assistance surveys, or to request such a survey, on a 
reimbursable basis, by the Department of Defense or other United States 
Government agencies. Such surveys shall be conducted consistent with 
the requirements of section 26 of the Arms Export Control Act.

             Subtitle B--Allocations for Certain Countries

SEC. 511. SECURITY ASSISTANCE FOR NEW NATO MEMBERS.

    (a) Foreign Military Financing.--Of the amounts made available for 
fiscal year 2001 under section 23 of the Arms Export Control Act (22 
U.S.C. 2763), $35,000,000 is authorized to be available on a grant 
basis for the Czech Republic, Hungary, and Poland.
    (b) Military Education and Training.--Of the amounts made available 
for fiscal year 2001 to carry out chapter 5 of part II of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2347 et seq.), $7,000,000 is 
authorized to be available only for the Czech Republic, Hungary, and 
Poland.
    (c) Select Priorities.--In providing assistance under this section, 
the President shall give priority to supporting activities 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 fiscal year 2001 
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 is authorized to be available for Greece; 
        and
            (2) $2,500,000 is authorized to be available for Turkey.
    (b) Use for Professional Military Education.--Of the amounts 
available under paragraphs (1) and (2) of subsection (a), $500,000 of 
such amounts should be available only for purposes of professional 
military education.
    (c) Use for Joint Training.--It is the sense of 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. MINIMUM ALLOCATION FOR EGYPT AND ISRAEL.

    (a) Availability of Funds.--Of the amounts made available for 
fiscal year 2001 for assistance under the ``Foreign Military Financing 
Program'' account under section 23 of the Arms Export Control Act (22 
U.S.C. 2763), $1,980,000,000 is authorized to be available on a grant 
basis for Israel, and $1,300,000,000 is authorized to be available on a 
grant basis for Egypt.
    (b) Disbursement of Funds.--Funds authorized to be available for 
Israel under subsection (a) shall be disbursed not later than 30 days 
after the date of 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.
    (c) 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 subsection (a) for Israel shall, as agreed by Israel 
and the United States, be available for advanced weapons systems, of 
which not less than 26.3 percent shall be available for the procurement 
in Israel of defense articles and defense services, including research 
and development.

SEC. 514. SECURITY ASSISTANCE FOR CERTAIN COUNTRIES.

    (a) Foreign Military Financing.--Of the amounts made available for 
fiscal year 2001 under section 23 of the Arms Export Control Act (22 
U.S.C. 2763)--
            (1) $20,500,000 is authorized to be available on a grant 
        basis for Estonia, Latvia, and Lithuania;
            (2) $5,000,000 is authorized to be available on a grant 
        basis for the Philippines;
            (3) $5,000,000 is authorized to be available on a grant 
        basis for Georgia;
            (4) $1,000,000 is authorized to be available on a grant 
        basis for Malta;
            (5) $4,000,000 is authorized to be available on a grant 
        basis for Slovenia;
            (6) $8,400,000 is authorized to be available on a grant 
        basis for Slovakia;
            (7) $11,000,000 is authorized to be available on a grant 
        basis for Romania; and
            (8) $8,500,000 is authorized to be available on a grant 
        basis for Bulgaria.
    (b) IMET.--Of the amounts made available for fiscal year 2001 to 
carry out chapter 5 of part II of the Foreign Assistance Act of 1961 
(22 U.S.C. 2347 et seq.)--
            (1) $4,000,000 is authorized to be available for Estonia, 
        Latvia, and Lithuania;
            (2) $1,500,000 is authorized to be available for the 
        Philippines;
            (3) $1,000,000 is authorized to be available for Georgia;
            (4) $1,000,000 is authorized to be available for Malta;
            (5) $1,000,000 is authorized to be available for Slovenia;
            (6) $1,000,000 is authorized to be available for Slovakia;
            (7) $1,500,000 is authorized to be available for Romania; 
        and
            (8) $1,200,000 is authorized to be available for Bulgaria.

SEC. 515. 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 year 2001:
            (1) $20,000,000 of the amounts made available for fiscal 
        year 2001 under section 23 of the Arms Export Control Act (22 
        U.S.C. 2763).
            (2) $10,000,000 of the amounts made available for fiscal 
        year 2001 under chapter 9 of part II of the Foreign Assistance 
        Act of 1961, as added by section 301.
            (3) $5,000,000 of the amounts made available for fiscal 
        year 2001 to carry out chapter 5 of part II of the Foreign 
        Assistance Act of 1961 (22 U.S.C. 2347 et seq.).
            (4) $2,000,000 of the amounts made available for fiscal 
        year 2001 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--OTHER PROVISIONS

SEC. 601. UTILIZATION OF DEFENSE ARTICLES AND 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. 602. SENSE OF THE SENATE REGARDING EXCESS DEFENSE ARTICLES.

    It is the sense of the Senate 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. 603. SENSE OF THE SENATE.

    It is the sense of the Senate that, prior to amending the 
International Traffic in Arms Regulations, the Secretary of State 
should consult with the Committee on Foreign Relations of the Senate 
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.

SEC. 604. 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. 605. 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 may 
        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 such as armor, artillery, automatic weapons 
        ammunition, missiles, and other munitions 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 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 shall consist solely of cash 
compensation.
    (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 5 years after the date of enactment of this 
Act.

SEC. 606. 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. 607. 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 fiscal year 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. 608. 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 person is not suspected of contributing to the acquisition, 
        design, development, or production of MTCR-class ballistic 
        missiles in Iran at any time since January 1, 2000.
            (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 person engaged in 
        commercial cooperation relating to MTCR equipment or technology 
        with a United States person pursuant to an arms export license 
        that was issued within the 36 months preceding the month in 
        which the certification is made.
            (3) 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 the submission of 
                the annual certification that is required to be 
                submitted 5 years after the date on which the first 
                certification is submitted.
    (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 or 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 or II of the MTCR Annex,''.
    (d) Definitions.--In this section:
            (1) Appropriate committees of congress.--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.
            (2) 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)).
            (3) 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)).
            (4) 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)).
            (5) 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. 609. 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 through 2008 for ESF assistance, not less 
        than the amount specified in paragraph (2) for each such fiscal 
        year shall be available only 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 through 2008 for assistance under the 
        Foreign Military Financing Program, not less than the amount 
        specified in paragraph (2) for each such fiscal year shall be 
        available only 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.
    (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.

                 TITLE VII--TRANSFERS OF NAVAL VESSELS

SEC. 701. 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 section is in addition to that granted under section 1018(a)(9) 
of Public Law 106-65.

SEC. 702. INAPPLICABILITY OF AGGREGATE ANNUAL LIMITATION ON VALUE OF 
              TRANSFERRED EXCESS DEFENSE ARTICLES.

    The value of naval vessels authorized under section 701 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) 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. 703. COSTS OF TRANSFERS.

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

SEC. 704. CONDITIONS RELATING TO COMBINED LEASE-SALE TRANSFERS.

    A transfer of a vessel on a combined lease-sale basis authorized by 
section 701 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 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. 705. 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 
701. 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. 706. EXPIRATION OF AUTHORITY.

    The authority granted by section 701 of this Act shall expire two 
years after the date of enactment of this Act.

                         TITLE VIII--DEFINITION

SEC. 801. APPROPRIATE COMMITTEES OF CONGRESS DEFINED.

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




                                                       Calendar No. 696

106th CONGRESS

  2d Session

                                S. 2901

                          [Report No. 106-351]

_______________________________________________________________________

                                 A BILL

To authorize appropriations to carry out security assistance for fiscal 
                   year 2001, and for other purposes.

_______________________________________________________________________

                             July 20, 2000

   Reported from the Committee on Foreign Relations, read twice, and 
                         placed on the calendar