[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1803 Placed on Calendar Senate (PCS)]






                                                       Calendar No. 276
107th CONGRESS
  1st Session
                                S. 1803

                          [Report No. 107-122]

 To authorize appropriations under the Arms Export Control Act and the 
Foreign Assistance Act of 1961 for security assistance for fiscal years 
                 2002 and 2003, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 11, 2001

   Mr. Biden, 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 under the Arms Export Control Act and the 
Foreign Assistance Act of 1961 for security assistance for fiscal years 
                 2002 and 2003, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Security 
Assistance Act of 2001''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
 TITLE I--VERIFICATION OF ARMS CONTROL AND NONPROLIFERATION AGREEMENTS

Sec. 101. Verification and Compliance Bureau personnel.
Sec. 102. Key Verification Assets Fund.
Sec. 103. Revised verification and compliance reporting requirements.
               TITLE II--MILITARY AND RELATED ASSISTANCE

      Subtitle A--Foreign Military Sales and Financing Authorities

Sec. 201. Authorization of appropriations.
Sec. 202. Relationship of foreign military sales to United States 
                            nonproliferation interests.
Sec. 203. Special Defense Acquisition Fund for nonproliferation and 
                            counter-narcotics purposes.
Sec. 204. Representation allowances.
Sec. 205. Arms Export Control Act prohibition on transactions with 
                            countries that have repeatedly provided 
                            support for acts of international 
                            terrorism.
       Subtitle B--International Military Education and Training

Sec. 211. Authorization of appropriations.
Sec. 212. Annual human rights reports.
          Subtitle C--Security Assistance for Select Countries

Sec. 221. Security assistance for Israel and Egypt.
Sec. 222. Security assistance for Greece and Turkey.
Sec. 223. Security assistance for certain other countries.
      Subtitle D--Excess Defense Article and Drawdown Authorities

Sec. 231. Excess defense articles for certain countries.
Sec. 232. Annual briefing on projected availability of excess defense 
                            articles.
Sec. 233. Expanded drawdown authority.
Sec. 234. Duration of security assistance leases.
            Subtitle E--Other Political-Military Assistance

Sec. 241. Destruction of surplus weapons stockpiles.
Sec. 242. Identification of funds for demining programs.
                  Subtitle F--Antiterrorism Assistance

Sec. 251. Authorization of appropriations.
Sec. 252. Specific program objectives.
                       Subtitle G--Other Matters

Sec. 261. Revised military assistance reporting requirements.
       TITLE III--NONPROLIFERATION AND EXPORT CONTROL ASSISTANCE

                     Subtitle A--General Provisions

Sec. 301. Authorization of appropriations.
Sec. 302. Interagency program to prevent diversion of sensitive United 
                            States technology.
Sec. 303. Joint State Department-Defense Department programs.
Sec. 304. Nonproliferation technology acquisition programs for friendly 
                            foreign countries.
Sec. 305. International nonproliferation and export control training.
Sec. 306. Relocation of scientists.
Sec. 307. Audits of the International Science and Technology Centers 
                            Program.
Sec. 308. International Atomic Energy Agency regular budget 
                            assessments.
Sec. 309. Revised nonproliferation reporting requirements.
   Subtitle B--Russian Federation Debt Reduction for Nonproliferation

Sec. 311. Short title.
Sec. 312. Findings and purposes.
Sec. 313. Definitions.
Sec. 314. Establishment of the Russian Nonproliferation Investment 
                            Facility.
Sec. 315. Reduction of the Russian Federation's Soviet-era debt owed to 
                            the United States, generally.
Sec. 316. Reduction of Soviet-era debt owed to the United States as a 
                            result of credits extended under title I of 
                            the Agricultural Trade Development and 
                            Assistance Act of 1954.
Sec. 317. Authority to engage in debt-for-nonproliferation exchanges 
                            and debt buybacks.
Sec. 318. Russian Nonproliferation Investment Agreement.
Sec. 319. Structure of debt-for-nonproliferation arrangements.
Sec. 320. Independent media and the rule of law.
Sec. 321. Nonproliferation requirement.
Sec. 322. Discussion of Russian Federation debt reduction for 
                            nonproliferation with other creditor 
                            states.
Sec. 323. Implementation of United States policy.
Sec. 324. Consultations with Congress.
Sec. 325. Annual report to Congress.
          Subtitle C--Nonproliferation Assistance Coordination

Sec. 331. Short title.
Sec. 332. Findings.
Sec. 333. Independent states of the former Soviet Union defined.
Sec. 334. Establishment of Committee on Nonproliferation Assistance to 
                            the Independent States of the Former Soviet 
                            Union.
Sec. 335. Duties of the Committee.
Sec. 336. Administrative support.
Sec. 337. Confidentiality of information.
Sec. 338. Statutory construction.
          TITLE IV--EXPEDITING THE MUNITIONS LICENSING PROCESS

Sec. 401. License officer staffing.
Sec. 402. Funding for database automation.
Sec. 403. Information management priorities.
Sec. 404. Contribution to the Automated Export System.
Sec. 405. Adjustment of threshold amounts for congressional review 
                            purposes.
Sec. 406. Periodic notification of pending applications for export 
                            licenses.
             TITLE V--NATIONAL SECURITY ASSISTANCE STRATEGY

Sec. 501. Establishment of the Strategy.
Sec. 502. Security assistance surveys.
                   TITLE VI--MISCELLANEOUS PROVISIONS

Sec. 601. Nuclear and missile nonproliferation in South Asia.
Sec. 602. Nonproliferation interests and negotiation of free trade 
                            agreements.
Sec. 603. Real-time public availability of raw seismological data.
Sec. 604. Detailing United States governmental personnel to 
                            international arms control and 
                            nonproliferation organizations.
Sec. 605. Diplomatic presence overseas.
Sec. 606. Protection against agricultural bioterrorism.
Sec. 607. Compliance with the Chemical Weapons Convention.
             TITLE VII--AUTHORITY TO TRANSFER NAVAL VESSELS

Sec. 701. Authority to transfer naval vessels to certain foreign 
                            countries.

SEC. 2. DEFINITIONS.

    In this Act:
            (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) Defense article.--The term ``defense article'' has the 
        meaning given the term in section 47(3) of the Arms Export 
        Control Act (22 U.S.C. 2794 note).
            (3) Defense service.--The term ``defense service'' has the 
        meaning given the term in section 47(4) of the Arms Export 
        Control Act (22 U.S.C. 2794 note).
            (4) Excess defense article.--The term ``excess defense 
        article'' has the meaning given the term in section 644(g) of 
the Foreign Assistance Act of 1961 (22 U.S.C. 2403(g)).
            (5) Secretary.--Except as otherwise provided, the term 
        ``Secretary'' means the Secretary of State.

 TITLE I--VERIFICATION OF ARMS CONTROL AND NONPROLIFERATION AGREEMENTS

SEC. 101. VERIFICATION AND COMPLIANCE BUREAU PERSONNEL.

    (a) In General.--Of the total amounts made available to the 
Department of State for fiscal years 2002 and 2003, not less than 
$14,000,000 each such fiscal year shall be provided to the Bureau of 
Verification and Compliance of the Department of State for Bureau-
administered activities, including the Key Verification Assets Fund.
    (b) Additional Personnel.--In addition to the amounts made 
available under subsection (a), not less than $1,800,000 shall be made 
available from the Department's American Salaries Account, for the 
purpose of hiring new personnel to carry out the Bureau's 
responsibilities, as set forth in section 112 of the Arms Export 
Control and Nonproliferation Act of 1999 (113 Stat. 1501A-486), as 
enacted into law by section 1000(a)(7) of Public Law 106-113.

SEC. 102. KEY VERIFICATION ASSETS FUND.

    Of the total amounts made available to the Department of State for 
fiscal years 2002 and 2003, not less than $7,000,000 shall be made 
available within the Verification and Compliance Bureau's account for 
each such fiscal year to carry out section 1111 of the Arms Control and 
Nonproliferation Act of 1999 (113 Stat. 1501A-486), as enacted into law 
by section 1000(a)(7) of Public Law 106-113.

SEC. 103. REVISED VERIFICATION AND COMPLIANCE REPORTING REQUIREMENTS.

    Section 403(a) of the Arms Control and Disarmament Act (22 U.S.C. 
2593a(a)) is amended by striking ``January 31'' and inserting ``April 
15''.

               TITLE II--MILITARY AND RELATED ASSISTANCE

      Subtitle A--Foreign Military Sales and Financing Authorities

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the President for grant 
assistance under section 23 of the Arms Export Control Act (22 U.S.C. 
2763) and for the subsidy cost, as defined in section 502(5) of the 
Federal Credit Reform Act of 1990, of direct loans under such section 
$3,674,000,000 for fiscal year 2002 and $4,267,000,000 for fiscal year 
2003.

SEC. 202. RELATIONSHIP OF FOREIGN MILITARY SALES TO UNITED STATES 
              NONPROLIFERATION INTERESTS.

    (a) Authorized Purposes.--The first sentence of section 4 of the 
Arms Export Control Act (22 U.S.C. 2754) is amended by inserting ``for 
preventing or hindering the proliferation of weapons of mass 
destruction and of the means of delivering such weapons,'' after 
``self-defense,''.
    (b) Definition of ``Weapons of Mass Destruction''.--Section 47 of 
the Arms Export Control Act (22 U.S.C. 2794) is amended--
            (1) by striking ``and'' at the end of paragraph (8);
            (2) by striking the period at the end of paragraph (9) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(10) `weapons of mass destruction' has the meaning 
        provided by section 1403(1) of the Defense Against Weapons of 
        Mass Destruction Act of 1996 (title XIV of Public Law 104-201; 
        110 Stat. 2717; 50 U.S.C. 2302(1)).''.
    (c) Sense of Congress.--It is the sense of Congress that the 
Secretary should ensure, in circumstances where the sale of defense 
articles or defense services to a friendly country would serve the 
nonproliferation interests of the United States, but that country 
cannot afford to purchase such defense articles or defense services, 
that grant assistance is provided pursuant to section 23 of the Arms 
Export Control Act to facilitate such acquisition.

SEC. 203. SPECIAL DEFENSE ACQUISITION FUND FOR NONPROLIFERATION AND 
              COUNTER-NARCOTICS PURPOSES.

    (a) Establishment.--Notwithstanding any other provision of law, the 
President shall direct that the Special Defense Acquisition Fund be 
established pursuant to section 51 of the Arms Export Control Act (22 
U.S.C. 2795).
    (b) Use of the Special Defense Acquisition Fund.--Section 51(a)(4) 
of the Arms Export Control Act (22 U.S.C. 2795(a)(4)) is amended by 
striking ``for use for'' and all that follows through ``equipment'' and 
inserting the following: ``for use for--
                    ``(A) narcotics control purposes and are 
                appropriate to the needs of recipient countries, such 
                as small boats, planes (including helicopters), and 
                communications equipment; and
                    ``(B) nonproliferation and export control purposes, 
                such as nuclear, radiological, chemical, and biological 
                warfare materials detection equipment.''.
    (c) Limitation.--Section 51(c) of the Arms Export Control Act (22 
U.S.C. 2795(c)) is amended--
            (1) in paragraph (1), by striking all after ``exceed'' 
        through the period and inserting ``$200,000,000.''; and
            (2) in paragraph (2), by striking ``provided'' and all that 
        follows through ``Acts'' and inserting ``specifically 
        authorized by law in advance''.
    (d) Authorization.--For fiscal year 2003, not more than $20,000,000 
may be made available for obligation for the procurement of items 
pursuant to section 51 of the Arms Export Control Act.

SEC. 204. REPRESENTATION ALLOWANCES.

    Section 43(c) of the Arms Export Control Act (22 U.S.C. 2792(c)) is 
amended by striking ``$72,500'' and inserting ``$86,500''.

SEC. 205. ARMS EXPORT CONTROL ACT PROHIBITION ON TRANSACTIONS WITH 
              COUNTRIES THAT HAVE REPEATEDLY PROVIDED SUPPORT FOR ACTS 
              OF INTERNATIONAL TERRORISM.

    The second sentence of section 40(d) of the Arms Export Control Act 
(22 U.S.C. 2780(d)) is amended--
            (1) by inserting ``or chemical, biological, or radiological 
        agents'' after ``nuclear explosive devices''; and
            (2) by inserting ``or chemical, biological, or radiological 
        agents'' after ``nuclear material''.

       Subtitle B--International Military Education and Training

SEC. 211. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the President 
$75,000,000 for fiscal year 2002 and $85,290,000 for fiscal year 2003 
to carry out chapter 5 of part II of the Foreign Assistance Act of 1961 
(22 U.S.C. 2347 et seq.; relating to international military education 
and training).

SEC. 212. ANNUAL HUMAN RIGHTS REPORTS.

    (a) With Respect to Prohibitions on Nonmilitary Assistance.--
Section 116(d) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2151n(d)) is amended by redesignating paragraphs (7) and (8) as 
paragraphs (8) and (9), respectively, and by inserting after paragraph 
(6) the following:
            ``(7) to the extent practicable, for any violation of 
        internationally recognized human rights reported under this 
        subsection, whether any foreign military or defense ministry 
        civilian participant in education and training activities under 
        chapter 5 of part II of this Act was involved;''.
    (b) Records Regarding Foreign Participants.--Section 548 of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2347e) is amended--
            (1) by striking ``In'' and inserting ``(a) Development and 
        Maintenance of Database.--In''; and
            (2) by adding at the end the following new subsections:
    ``(b) Annual List of Foreign Personnel.--For the purposes of 
preparing the report required pursuant to section 116(d), the Secretary 
of State may annually request the Secretary of Defense to provide 
information contained in the database with respect to a list submitted 
to the Secretary of Defense by the Secretary of State, containing the 
names of foreign personnel or military units. To the extent 
practicable, the Secretary of Defense shall provide, and the Secretary 
of State may take into account, the information contained in the 
database, if any, relating to the Secretary of State's submission.
    ``(c) Updating of Database.--If the Secretary of State determines 
and reports to Congress under section 116(d) that a foreign person 
identified in the database maintained pursuant to this section was 
involved in a violation of internationally recognized human rights, the 
Secretary of Defense shall ensure that the database is updated to 
contain such fact and all relevant information.''.

          Subtitle C--Security Assistance for Select Countries

SEC. 221. SECURITY ASSISTANCE FOR ISRAEL AND EGYPT.

    (a) Authorization of Appropriations.--
            (1) Israel.--Section 513 of the Security Assistance Act of 
        2000 (Public Law 106-280) is amended by striking ``2001 and 
        2002'' each place that it appears and inserting ``2002 and 
        2003''.
            (2) Egypt.--Section 514 of the Security Assistance Act of 
        2000 (Public Law 106-280) is amended by striking ``2001 and 
        2002'' each place that it appears and inserting ``2002 and 
        2003''.
    (b) Ballistic Missile Defense.--Of the amounts made available for 
fiscal years 2002 and 2003 under section 513 of the Security Assistance 
Act of 2000 (Public Law 106-280), as amended by subsection (a), 
$100,000,000 may be used each such fiscal year for the establishment, 
in cooperation with a United States company, of a production line for 
the Arrow missile in the United States.
    (c) Continued Availability of Funds.--Funds returned to the United 
States by Israel in connection with implementation of section 1403 of 
division A of H.R. 5666 (114 Stat. 2763A-214), as enacted into law by 
section 1(a)(4) of Public Law 106-554, shall be made available as 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, 
and shall remain available until expended.

SEC. 222. SECURITY ASSISTANCE FOR GREECE AND TURKEY.

    (a) In General.--Of the amounts made available for the fiscal years 
2002 and 2003 to carry out chapter 5 of part II of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2347 et seq.)--
            (1) $1,000,000 for fiscal year 2002 and $1,170,000 for 
        fiscal year 2003 are authorized to be available for Greece; and
            (2) $2,500,000 for fiscal year 2002 and $2,920,000 for 
        fiscal year 2003 are authorized to be available for Turkey.
    (b) Use for Professional Military Education.--Of the amounts 
available under paragraphs (1) and (2) of subsection (a) for each of 
fiscal years 2002 and 2003, $500,000 of each such amount should be 
available for purposes of professional military education.
    (c) Use for Joint Training.--It is the sense of 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.
    (d) Repeal.--Section 512 of the Security Assistance Act of 2000 
(Public Law 106-280; 114 Stat. 856) is repealed.

SEC. 223. SECURITY ASSISTANCE FOR CERTAIN OTHER COUNTRIES.

    (a) FMF for Certain Other Countries.--Of the amounts made available 
for the fiscal years 2002 and 2003 under section 23 of the Arms Export 
Control Act (22 U.S.C. 2763), the following amounts are authorized to 
be available on a grant basis for the following countries for the 
fiscal years specified:
            (1) The baltic states.--For all of the Baltic states of 
        Estonia, Latvia, and Lithuania, $21,000,000 for fiscal year 
        2002 and $24,400,000 for fiscal year 2003.
            (2) Bulgaria.--For Bulgaria, $10,000,000 for fiscal year 
        2002 and $11,620,000 for fiscal year 2003.
            (3) The czech republic.--For the Czech Republic, 
        $12,000,000 for fiscal year 2002 and $14,000,000 for fiscal 
        year 2003.
            (4) Georgia.--For Georgia, $5,650,000 for fiscal year 2002 
        and $6,560,000 for fiscal year 2003.
            (5) Hungary.--For Hungary, $12,000,000 for fiscal year 2002 
        and $14,000,000 for fiscal year 2003.
            (6) Jordan.--For Jordan, $75,000,000 for fiscal year 2002 
        and $87,300,000 for fiscal year 2003.
            (7) Malta.--For Malta, $1,000,000 for fiscal year 2002 and 
        $1,170,000 for fiscal year 2003.
            (8) The philippines.--For the Philippines, $19,000,000 for 
        fiscal year 2002 and $22,100,000 for fiscal year 2003.
            (9) Poland.--For Poland, $15,000,000 for fiscal year 2002 
        and $17,500,000 for fiscal year 2003.
            (10) Romania.--For Romania, $11,500,000 for fiscal year 
        2002 and $13,400,000 for fiscal year 2003.
            (11) Slovakia.-- For Slovakia, $8,500,000 for fiscal year 
        2002 and $9,900,000 for fiscal year 2003.
            (12) Slovenia.--For Slovenia, $4,500,000 for fiscal year 
        2002 and $5,250,000 for fiscal year 2003.
    (b) IMET.--Of the amounts made available for the fiscal years 2002 
and 2003 to carry out chapter 5 of part II of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2347 et seq.), the following amounts are 
authorized to be available for the following countries for the fiscal 
years specified:
            (1) The baltic states.--For all of the Baltic states of 
        Estonia, Latvia, and Lithuania, $3,000,000 for fiscal year 2002 
        and $3,420,000 for fiscal year 2003.
            (2) Bulgaria.--For Bulgaria, $1,200,000 for fiscal year 
        2002 and $1,370,000 for fiscal year 2003.
            (3) The czech republic.--For the Czech Republic, $1,800,000 
        for fiscal year 2002 and $2,050,000 for fiscal year 2003.
            (4) Georgia.--For Georgia, $850,000 for fiscal year 2002 
        and $970,000 for fiscal year 2003.
            (5) Hungary.--For Hungary, $1,800,000 for fiscal year 2002 
        and $2,050,000 for fiscal year 2003.
            (6) Jordan.--For Jordan, $1,800,000 for fiscal year 2002 
        and $2,050,000 for fiscal year 2003.
            (7) Malta.--For Malta, $300,000 for fiscal year 2002 and 
        $350,000 for fiscal year 2003.
            (8) The philippines.--For the Philippines, $1,710,000 for 
        fiscal year 2002 and $2,000,000 for fiscal year 2003.
            (9) Poland.--For Poland, $1,900,000 for fiscal year 2002 
        and $2,160,000 for fiscal year 2003.
            (10) Romania.--For Romania, $1,400,000 for fiscal year 2002 
        and $1,600,000 for fiscal year 2003.
            (11) Slovakia.--For Slovakia, $850,000 for fiscal year 2002 
        and $970,000 for fiscal year 2003.
            (12) Slovenia.--For Slovenia, $800,000 for fiscal year 2002 
        and $910,000 for fiscal year 2003.
    (c) Written Explanation of Presidential Determinations.--In the 
event that the President determines not to provide, or determines to 
exceed, the funding allocated for any country specified in this section 
by an amount that is more than five percent of that specified in this 
section, the President shall submit to the appropriate committees of 
Congress within 15 days of such determination a written explanation of 
the reasons therefor.
    (d) Repeals.--Sections 511 (a) and (b) and 515 of the Security 
Assistance Act of 2000 are repealed.

      Subtitle D--Excess Defense Article and Drawdown Authorities

SEC. 231. EXCESS DEFENSE ARTICLES FOR CERTAIN COUNTRIES.

    (a) Authority.--Notwithstanding section 516(e) of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2321j(e), during each of the fiscal 
years 2002 and 2003, 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 Albania, Bulgaria, Croatia, Estonia, Former Yugoslavia 
Republic of Macedonia, Georgia, India, Kazakhstan, Kyrgyzstan, Latvia, 
Lithuania, Moldova, Mongolia, Pakistan, Romania, Slovakia, Slovenia, 
Tajikistan, Turkmenistan, Ukraine, and Uzbekistan.
    (b) Sense of Congress.--The authority provided under this section 
should be utilized only for those countries demonstrating a genuine 
commitment to democracy and human rights.

SEC. 232. ANNUAL BRIEFING ON PROJECTED AVAILABILITY OF EXCESS DEFENSE 
              ARTICLES.

    Not later than 90 days prior to the commencement of each fiscal 
year, the Department of Defense shall brief the Department of State and 
the appropriate committees of Congress regarding the expected 
availability of excess defense articles during the next fiscal year, 
for the purpose of enabling the Department of State to factor such 
availability into annual security assistance plans.

SEC. 233. EXPANDED DRAWDOWN AUTHORITY.

    Section 506(c) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2318(c)) is amended to read as follows:
    ``(c) For the purposes of any provision of law that authorizes the 
drawdown of defense or other articles or commodities, or defense or 
other services from an agency of the United States Government, such 
drawdown may include the supply of commercial transportation and 
related services and defense or other articles or commodities, or 
defense or other services, that are acquired by contract for the 
purposes of the drawdown in question, if the cost to acquire such items 
or services is less than the cost to the United States Government of 
providing such items or services from existing agency assets.''.

SEC. 234. DURATION OF SECURITY ASSISTANCE LEASES.

    Section 61 of the Arms Export Control Act (22 U.S.C. 2796) is 
amended--
            (1) in subsection (b), by striking ``of not to exceed five 
        years'' and inserting ``that may not exceed 5 years, plus a 
        period of time specified in the lease as may be necessary for 
        major refurbishment work to be performed prior to final 
        delivery by the lessor of the defense articles,''; and
            (2) by adding at the end the following new subsection:
    ``(d) In this section, the term `major refurbishment work' means 
refurbishment work performed over a period estimated to be 6 months or 
more.''.

            Subtitle E--Other Political-Military Assistance

SEC. 241. DESTRUCTION OF SURPLUS WEAPONS STOCKPILES.

    Of the funds authorized to be appropriated to the President for 
fiscal years 2002 and 2003 to carry out chapters 1 and 10 of part I of 
the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.), relating 
to development assistance, up to $10,000,000 is authorized to be made 
available each such fiscal year for the destruction of surplus 
stockpiles of small arms, light weapons, and other munitions.

SEC. 242. IDENTIFICATION OF FUNDS FOR DEMINING PROGRAMS.

    (a) Humanitarian Demining.--Of the funds authorized to be 
appropriated under section 201 for nonproliferation, antiterrorism, 
demining, and related programs, $40,000,000 is authorized to be 
appropriated for each of the fiscal years 2002 and 2003 for demining 
programs and program support costs.
    (b) Demining To Enable Economic Growth and Agricultural 
Development.--Of the funds authorized to be appropriated for 
development assistance, the Secretary is authorized to provide up to 
$40,000,000 for each of fiscal years 2002 and 2003 for demining 
programs administered by the Bureau of Political Military Affairs, and 
program support costs.

                  Subtitle F--Antiterrorism Assistance

SEC. 251. AUTHORIZATION OF APPROPRIATIONS.

    Section 574(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2349aa-4(a)) is amended by striking ``$72,000,000 for fiscal year 2001 
and $73,000,000 for fiscal year 2002'' and inserting ``$73,000,000 for 
fiscal year 2002 and $75,000,000 for fiscal year 2003''.

SEC. 252. SPECIFIC PROGRAM OBJECTIVES.

    Of the amounts authorized to be appropriated to the President 
pursuant to section 574(a) of the Foreign Assistance Act of 1961 (22 
U.S.C. 2349aa-4(a)), $2,000,000 may be made available for the provision 
of the Pisces system to the governments of the Philippines and 
Pakistan.

                       Subtitle G--Other Matters

SEC. 261. REVISED MILITARY ASSISTANCE REPORTING REQUIREMENTS.

    (a) Annual Foreign Military Training Reports.--Section 656(a) of 
the Foreign Assistance Act of 1961 (22 U.S.C. 2416) does not apply to 
any NATO or major non-NATO ally unless the chairman or ranking member 
of one of the appropriate committees of Congress has specifically 
requested, in writing, inclusion of such country in the report. Such 
request shall be made not later than 45 calendar days prior to the date 
on which the report is required to be transmitted.
    (b) Annual Military Assistance Reports.--Section 655 of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2415) is amended--
            (1) by striking subsection (c); and
            (2) by redesignating subsection (d) as subsection (c).
    (c) Quarterly Reports on Government-To-Government Arms Exports.--
Section 36(a) of the Arms Export Control Act (22 U.S.C. 2776(a)) is 
amended--
            (1) by striking paragraph (7); and
            (2) by redesignating paragraphs (8), (9), (10), (11), (12), 
        and (13) as paragraphs (7), (8), (9), (10), (11), and (12), 
        respectively.

       TITLE III--NONPROLIFERATION AND EXPORT CONTROL ASSISTANCE

                     Subtitle A--General Provisions

SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

    (a) Authorization.--Section 585 of the Foreign Assistance Act of 
1961 (22 U.S.C. 2349bb-4) is amended--
            (1) in subsection (a), by striking all after ``chapter'' 
        and inserting ``$142,000,000 for fiscal year 2002 and 
        $152,000,000 for fiscal year 2003.''; and
            (2) in subsection (c), by striking ``2001'' each place that 
        it appears and inserting ``2002''.
    (b) Suballocations.--Of the amounts authorized to be appropriated 
to the President for fiscal years 2002 and 2003 under chapter 9 of part 
II of the Foreign Assistance Act of 1961 (22 U.S.C. 2349bb et seq.)--
            (1) not less than $2,000,000 shall be made available each 
        such fiscal year for the purpose of carrying out section 584 of 
        the Foreign Assistance Act of 1961, as added by section 305 of 
        this Act; and
            (2) $65,000,000 for fiscal year 2002 and $65,000,000 for 
        fiscal year 2003 are authorized to be appropriated for science 
        and technology centers in the independent states of the former 
        Soviet Union.
    (c) Conforming Amendment.--Section 302 of the Security Assistance 
Act of 2000 (Public Law 106-280) is repealed.

SEC. 302. INTERAGENCY PROGRAM TO PREVENT DIVERSION OF SENSITIVE UNITED 
              STATES TECHNOLOGY.

    (a) In General.--The Secretary, the Secretary of Commerce, and the 
Commissioner of Customs, acting jointly, are authorized to establish 
joint law enforcement and nonproliferation programs which are designed 
to ensure that technology and sensitive items are not diverted from the 
United States for use in foreign weapons programs.
    (b) Department of State Contributions.--Of the amounts authorized 
to be appropriated for fiscal years 2002 and 2003 under chapter 9 of 
part II of the Foreign Assistance Act of 1961--
            (1) the President is authorized to transfer to the United 
        States Customs Service not more than $1,000,000 for programs 
        described in subsection (a); and
            (2) there is authorized to be made available for the 
        activities described in subsection (c)--
                    (A) for fiscal year 2002, $5,000,000; and
                    (B) for fiscal year 2003, $7,000,000.
    (c) Inspector-Investigator Program.--Consistent with the purposes 
set forth in section 581 (1) and (2) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2349bb (1) and (2)), the Secretary is authorized to--
            (1) initiate a program to recruit and hire individuals who 
        are retired inspectors and investigators of the United States 
        Customs Service and the Bureau of Export Enforcement; and
            (2) assign such personnel to United States diplomatic 
        missions overseas, giving priority to the assignment of such 
        personnel to countries that have been given priority under 
        section 583(b) of the Foreign Assistance Act of 1961.

SEC. 303. JOINT STATE DEPARTMENT-DEFENSE DEPARTMENT PROGRAMS.

    Of the amounts authorized to be appropriated to the President for 
fiscal years 2002 and 2003 under chapter 9 of part II of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2349bb et seq.), the Secretary is 
authorized to make available not more than $1,000,000 for international 
counterproliferation programs administered by the Department of 
Defense.

SEC. 304. NONPROLIFERATION TECHNOLOGY ACQUISITION PROGRAMS FOR FRIENDLY 
              FOREIGN COUNTRIES.

    (a) In General.--For the purpose of enhancing the nonproliferation 
and export control capabilities of friendly countries, of the amounts 
authorized to be appropriated for fiscal years 2002 and 2003 under 
chapter 9 of part II of the Foreign Assistance Act of 1961 (22 U.S.C. 
2349bb et seq.), the Secretary is authorized to expend not more than--
            (1) $5,000,000 for the procurement and provision of 
        nuclear, chemical, and biological detection systems, including 
        spectroscopic and pulse echo technologies; and
            (2) $10,000,000 for the procurement and provision of x-ray 
        systems capable of imaging sea-cargo containers.
    (b) Training Requirement.--The Secretary shall not provide any 
equipment or technology pursuant to this section without having first 
developed and budgeted for a multiyear training plan to assist foreign 
personnel in the utilization of those items.
    (c) Procurement Authorities.--For fiscal year 2003, the Secretary 
shall utilize, to the maximum extent practicable, the Special Defense 
Acquisition Fund for procurements authorized under this section.

SEC. 305. INTERNATIONAL NONPROLIFERATION AND EXPORT CONTROL TRAINING.

    Chapter 9 of part II of the Foreign Assistance Act of 1961 (22 
U.S.C. 2349bb et seq.) is amended--
            (1) by redesignating sections 584 and 585 as sections 585 
        and 586, respectively; and
            (2) by inserting after section 583 the following:

``SEC. 584. INTERNATIONAL NONPROLIFERATION EXPORT CONTROL TRAINING.

    ``(a) General Authority.--The President is authorized to furnish, 
on such terms and conditions consistent with this chapter (but whenever 
feasible on a reimbursable basis), education and training to foreign 
personnel for the purpose of enhancing the nonproliferation and export 
control capabilities of such personnel through their attendance in 
special courses of instruction conducted by the United States.
    ``(b) Administration of Courses.--The Secretary of State shall have 
overall responsibility for the development and conduct of international 
nonproliferation education and training programs, but may utilize other 
departments and agencies, as appropriate, to recommend personnel for 
the education and training, and to administer specific courses of 
instruction.
    ``(c) Purposes.--Education and training activities conducted under 
this section shall be--
            ``(1) of a technical nature, emphasizing techniques for 
        detecting, deterring, monitoring, interdicting, and countering 
        proliferation;
            ``(2) designed to encourage effective and mutually 
        beneficial relations and increased understanding between the 
        United States and friendly countries; and
            ``(3) designed to improve the ability of friendly countries 
        to utilize their resources with maximum effectiveness, thereby 
        contributing to greater self-reliance by such countries.
    ``(d) Priority to Certain Countries.--In selecting military and 
foreign governmental personnel for education and training pursuant to 
this section, priority shall be given to personnel from countries for 
which the Secretary of State has given priority under section 
583(b).''.

SEC. 306. RELOCATION OF SCIENTISTS.

    (a) Reinstatement of Classification Authority.--Section 4 of the 
Soviet Scientists Immigration Act of 1992 (Public Law 102-509; 106 
Stat. 3316; 8 U.S.C. 1153 note) is amended by striking subsection (d) 
and inserting the following:
    ``(d) Duration of Authority.--The authority under subsection (a) 
shall be in effect during the following periods:
            ``(1) The period beginning on the date of the enactment of 
        this Act and ending 4 years after such date.
            ``(2) The period beginning on the date of the enactment of 
        the Security Assistance Act of 2001 and ending 4 years after 
        such date.''.
    (b) Limitation on Number of Scientists Eligible for Visas Under 
Authority.--Subsection (c) of such section is amended by striking 
``750'' and inserting ``950''.
    (c) Limitation on Eligibility.--Subsection (a) of such section is 
amended by adding at the end the following new sentence: ``A scientist 
is not eligible for designation under this subsection if the scientist 
has previously been granted the status of an alien lawfully admitted 
for permanent residence (as defined in section 101(a)(20) of the 
Immigration and Nationality Act (8 U.S.C. 1101(a)(20))).''.
    (d) Consultation Requirement.--The Attorney General shall consult 
with the Secretary, the Secretary of Defense, the Secretary of Energy, 
and the heads of other appropriate agencies of the United States 
regarding--
            (1) previous experience in implementing the Soviet 
        Scientists Immigration Act of 1992; and
            (2) any changes that those officials would recommend in the 
        regulations prescribed under that Act.

SEC. 307. AUDITS OF THE INTERNATIONAL SCIENCE AND TECHNOLOGY CENTERS 
              PROGRAM.

    Consistent with section 303(b) of the Security Assistance Act of 
2000 (Public Law 106-280; 114 Stat. 853), not later than 60 days after 
the date of enactment of this Act, the Secretary shall submit a 
detailed report to the appropriate committees of Congress on United 
States audit practices with respect to the ``International Science and 
Technology Centers Program''.

SEC. 308. INTERNATIONAL ATOMIC ENERGY AGENCY REGULAR BUDGET 
              ASSESSMENTS.

    (a) Findings.--Congress makes the following findings:
            (1) The Department of State has concluded that the 
        International Atomic Energy Agency (hereafter in this section 
        referred to as the ``IAEA'') is a critical and effective 
        instrument for verifying compliance with international nuclear 
        nonproliferation agreements, and that it serves as an essential 
        barrier to the spread of nuclear weapons.
            (2) The IAEA furthers United States national security 
        objectives by helping to prevent the proliferation of nuclear 
        weapons material, especially through its work on effective 
        verification and safeguards measures.
            (3) The IAEA can also perform a critical role in monitoring 
        and verifying aspects of nuclear weapons reduction agreements 
        between nuclear weapons states.
            (4) As the IAEA has negotiated and developed more effective 
        verification and safeguards measures, it has experienced 
        significant real growth in its mission, especially in the vital 
        area of nuclear safeguards inspections.
            (5) Nearly two decades of zero budget growth have affected 
        the ability of the IAEA to carry out its mission and to hire 
        and retain the most qualified inspectors and managers, as 
        evidenced in the decreasing proportion of such personnel who 
        hold doctorate degrees.
            (6) Although voluntary contributions by the United States 
        lessen the IAEA's budgetary constraints, they cannot readily be 
        used for the long-term capital investments or permanent staff 
        increases necessary to an effective IAEA safeguards regime.
            (7) It was not the intent of Congress that the United 
        States contributions to all United Nations-related 
        organizations and activities be reduced pursuant to the Admiral 
        James W. Nance and Meg Donovan Foreign Relations Authorization 
        Act, Fiscal Years 2000 and 2001 (as enacted into law by section 
        1000(a)(7) of Public Law 106-113; 113 Stat. 1501A-405 et seq.), 
        which sets 22 percent assessment rates as benchmarks for the 
        general United Nations budget, the Food and Agricultural 
        Organization, the World Health Organization, and the 
        International Labor Organization. Rather, contributions for 
        important and effective agencies such as the IAEA should be 
        maintained at levels commensurate with the criticality of its 
        mission.
    (b) Additional Funding for the International Atomic Energy 
Agency.--It is the sense of Congress that--
            (1) the Secretary should negotiate a gradual and sustained 
        increase in the regular budget of the International Atomic 
        Energy Agency, which should begin with the 2002 budget;
            (2) if a regular budget increase for the IAEA is achieved, 
        the Secretary should seek to gain consensus within the IAEA 
        Board of Governors for allocation of a larger proportion of 
        that budget to nuclear nonproliferation activities; and
            (3) if such a reallocation of the regular IAEA budget 
        cannot be obtained, the United States should decrease its 
        voluntary contribution by $400,000 for each $1,000,000 increase 
        in its annual assessment.
    (c) Authorization of Appropriations.--Of the funds authorized to be 
appropriated for international organizations, $60,000,000 are 
authorized to be appropriated in fiscal year 2002 for the payment of 
the United States assessment to the International Atomic Energy Agency, 
and $75,000,000 shall be available for that purpose in fiscal year 
2003.

SEC. 309. REVISED NONPROLIFERATION REPORTING REQUIREMENTS.

    Section 308 of Public Law 102-182 (22 U.S.C. 5606) is hereby 
repealed.

   Subtitle B--Russian Federation Debt Reduction for Nonproliferation

SEC. 311. SHORT TITLE.

    This subtitle may be cited as the ``Russian Federation Debt 
Reduction for Nonproliferation Act of 2001''.

SEC. 312. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds the following:
            (1) It is in the vital security interests of the United 
        States to prevent the spread of weapons of mass destruction to 
        additional states or to terrorist organizations, and to ensure 
        that other nations' obligations to reduce their stockpiles of 
        such arms in accordance with treaties, executive agreements, or 
        political commitments are fulfilled.
            (2) In particular, it is in the vital national security 
        interests of the United States to ensure that--
                    (A) all stocks of nuclear weapons and weapons-
                usable nuclear material in the Russian Federation are 
                secure and accounted for;
                    (B) stocks of nuclear weapons and weapons-usable 
                nuclear material that are excess to military needs in 
                the Russian Federation are monitored and reduced;
                    (C) any chemical or biological weapons, related 
                materials, and facilities in the Russian Federation are 
                destroyed;
                    (D) the Russian Federation's nuclear weapons 
                complex is reduced to a size appropriate to its post-
                Cold War missions, and its experts in weapons of mass 
                destruction technologies are shifted to gainful and 
                sustainable civilian employment;
                    (E) the Russian Federation's export control system 
                blocks any proliferation of weapons of mass 
                destruction, the means of delivering such weapons, and 
                materials, equipment, know-how, or technology that 
                would be used to develop, produce, or deliver such 
                weapons; and
                    (F) these objectives are accomplished with 
                sufficient monitoring and transparency to provide 
                confidence that they have in fact been accomplished and 
                that the funds provided to accomplish these objectives 
                have been spent efficiently and effectively.
            (3) United States programs should be designed to accomplish 
        these vital objectives in the Russian Federation as rapidly as 
        possible, and the President should develop and present to 
        Congress a plan for doing so.
            (4) Substantial progress has been made in United States-
        Russian Federation cooperative programs to achieve these 
        objectives, but much more remains to be done to reduce the 
        urgent risks to United States national security posed by the 
        current state of the Russian Federation's weapons of mass 
        destruction stockpiles and complexes.
            (5) The threats posed by inadequate management of weapons 
        of mass destruction stockpiles and complexes in the Russian 
        Federation remain urgent. Incidents in years immediately 
        preceding 2001, which have been cited by the Russia Task Force 
        of the Secretary of Energy's Advisory Board, include--
                    (A) a conspiracy at one of the Russian Federation's 
                largest nuclear weapons facilities to steal nearly 
                enough highly enriched uranium for a nuclear bomb;
                    (B) an attempt by an employee of the Russian 
                Federation's premier nuclear weapons facility to sell 
                nuclear weapons designs to agents of Iraq and 
                Afghanistan; and
                    (C) the theft of radioactive material from a 
                Russian Federation submarine base.
            (6) Addressing these threats to United States and world 
        security will ultimately consume billions of dollars, a burden 
        that will have to be shared by the Russian Federation, the 
        United States, and other governments, if this objective is to 
        be achieved.
            (7) The creation of new funding streams could accelerate 
        progress in reducing these threats to United States security 
        and help the government of the Russian Federation to fulfill 
        its responsibility for secure management of its weapons 
        stockpiles and complexes as United States assistance phases 
        out.
            (8) The Russian Federation suffers from a significant 
        foreign debt burden, a substantial proportion of which it 
        inherited from the Soviet Union. The Russian Federation is 
        taking full responsibility for this debt, but the burden of 
        debt repayment could threaten Russian Federation economic 
        reform, particularly in 2003 and beyond.
            (9) The Russian Federation's need for debt relief has been 
        the subject of discussions between the United States and the 
        Russian Federation at the highest levels and is cited by United 
        States officials as one reason why the Russian Federation has 
        recognized that its future lies with the West.
            (10) Past debt-for-environment exchanges, in which a 
        portion of a country's foreign debt is canceled in return for 
        certain environmental commitments or payments by that country, 
        provide a model for a possible debt-for-nonproliferation 
        exchange with the Russian Federation, which could be designed 
        to provide additional funding for nonproliferation and arms 
        reduction initiatives.
            (11) Most of the Russian Federation's official bilateral 
        debt is held by United States allies that are advanced 
        industrial democracies. Since the issues described pose threats 
        to United States allies as well, United States leadership that 
        results in a larger contribution from United States allies to 
        cooperative threat reduction activities will be needed.
    (b) Purposes.--The purposes of this subtitle are--
            (1) to recognize the vital interests of the United States, 
        its allies, and the Russian Federation in reducing the threats 
        to international security described in the findings set forth 
        in subsection (a);
            (2) to facilitate the accomplishment of the United States 
        objectives described in the findings set forth in subsection 
        (a) by providing for the alleviation of a portion of the 
        Russian Federation's foreign debt, thus allowing the use of 
        additional resources for these purposes; and
            (3) to ensure that resources freed from debt in the Russian 
        Federation are targeted to the accomplishment of the United 
        States objectives described in the findings set forth in 
        subsection (a).

SEC. 313. DEFINITIONS.

    In this subtitle:
            (1) Agreement.--The term ``Agreement'' means the Russian 
        Nonproliferation Investment Agreement provided for in section 
        318.
            (2) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on International Relations and 
                the Committee on Appropriations of the House of 
                Representatives; and
                    (B) the Committee on Foreign Relations and the 
                Committee on Appropriations of the Senate.
            (3) Cost.--The term ``cost'' has the meaning given that 
        term in section 502(5) of the Federal Credit Reform Act of 1990 
        (2 U.S.C. 661a(5)).
            (4) Facility.--The term ``Facility'' means the Russian 
        Nonproliferation Investment Facility established in the 
        Department of the Treasury by section 314.
            (5) Soviet-era debt.--The term ``Soviet-era debt'' means 
        debt owed as a result of loans or credits provided by the 
        United States (or any agency of the United States) to the Union 
        of Soviet Socialist Republics.

SEC. 314. ESTABLISHMENT OF THE RUSSIAN NONPROLIFERATION INVESTMENT 
              FACILITY.

    There is established in the Department of the Treasury an entity to 
be known as the ``Russian Nonproliferation Investment Facility'' for 
the purpose of providing for the administration of debt reduction in 
accordance with this subtitle.

SEC. 315. REDUCTION OF THE RUSSIAN FEDERATION'S SOVIET-ERA DEBT OWED TO 
              THE UNITED STATES, GENERALLY.

    (a) Authority To Reduce Soviet-Era Debt.--
            (1) Authority.--
                    (A) In general.--Except as provided in subparagraph 
                (B), and subject to section 321, the President may 
                reduce the amount of Soviet-era debt owed by the 
                Russian Federation to the United States (or any agency 
                of the United States) that is outstanding as of October 
                1, 2001.
                    (B) Exception.--The authority of subparagraph (A) 
                to reduce Soviet-era debt does not include any debt 
                that is described in section 316(a)(1).
            (2) Congressional notification.--The President shall notify 
        the appropriate congressional committees of his intention to 
        reduce the amount of the Russian Federation's Soviet-era debt 
        at least 15 days in advance of any formal determination to do 
        so.
            (3) Authorization of appropriations.--
                    (A) In general.--For the cost of the reduction of 
                any Soviet-era debt pursuant to this section, there are 
                authorized to be appropriated to the President--
                            (i) $50,000,000 for fiscal year 2002; and
                            (ii) $100,000,000 for fiscal year 2003.
                    (B) Limitation.--The authority provided by this 
                section shall be available only to the extent that 
                appropriations for the cost of the modification of any 
                Soviet-era debt pursuant to this section are made in 
                advance.
            (4) Certain prohibitions inapplicable.--
                    (A) In general.--A reduction of Soviet-era debt 
                pursuant to this section shall not be considered 
                assistance for the purposes of any provision of law 
                limiting assistance to a country.
                    (B) Additional requirement.--The authority of this 
                section may be exercised notwithstanding section 620(r) 
                of the Foreign Assistance Act of 1961 or section 321 of 
                the International Development and Food Assistance Act 
                of 1975.
    (b) Implementation of Soviet-Era Debt Reduction.--
            (1) In general.--Any reduction of Soviet-era debt pursuant 
        to subsection (a) shall be--
                    (A) implemented pursuant to the terms of a Russian 
                Nonproliferation Investment Agreement authorized under 
                section 318; and
                    (B) accomplished at the direction of the Facility 
                by the exchange of a new obligation for obligations of 
                the type referred to in such subsection that are 
                outstanding as of October 1, 2001.
            (2) Exchange of obligations.--
                    (A) In general.--The Facility shall notify the 
                agency primarily responsible for administering part I 
                of the Foreign Assistance Act of 1961 of an agreement 
                entered into under paragraph (1) with the Russian 
                Federation to exchange a new obligation for outstanding 
                obligations.
                    (B) Additional requirement.--At the direction of 
                the Facility, the old obligations that are the subject 
                of the agreement shall be canceled and a new debt 
                obligation for the Russian Federation shall be 
                established relating to the agreement, and the agency 
                primarily responsible for administering part I of the 
                Foreign Assistance Act of 1961 shall make an adjustment 
                in its accounts to reflect the debt reduction.
    (c) Additional Terms and Conditions.--The following additional 
terms and conditions shall apply to the reduction of Soviet-era debt 
under subsection (a)(1) in the same manner as such terms and conditions 
apply to the reduction of debt under section 704(a)(1) of the Foreign 
Assistance Act of 1961:
            (1) The provisions relating to repayment of principal under 
        section 705 of the Foreign Assistance Act of 1961.
            (2) The provisions relating to interest on new obligations 
        under section 706 of the Foreign Assistance Act of 1961.

SEC. 316. REDUCTION OF SOVIET-ERA DEBT OWED TO THE UNITED STATES AS A 
              RESULT OF CREDITS EXTENDED UNDER TITLE I OF THE 
              AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT OF 
              1954.

    (a) Authority To Reduce Certain Soviet-Era Debt.--
            (1) Authority.--Notwithstanding any other provision of law, 
        and subject to section 321, the President may reduce the amount 
        of Soviet-era debt owed to the United States (or any agency of 
        the United States) by the Russian Federation that is 
        outstanding as of October 1, 2001, as a result of any credits 
        extended under title I of the Agricultural Trade Development 
        and Assistance Act of 1954 (7 U.S.C. 1701 et seq.).
            (2) Congressional notification.--The President shall notify 
        the appropriate congressional committees of his intention to 
        reduce the amount of the Russian Federation's Soviet-era debt 
        described in paragraph (1) at least 15 days in advance of any 
        formal determination to do so.
            (3) Authorization of appropriations.--
                    (A) In general.--For the cost of the reduction of 
                any Soviet-era debt pursuant to this section, there are 
                authorized to be appropriated to the President--
                            (i) $50,000,000 for fiscal year 2002; and
                            (ii) $100,000,000 for fiscal year 2003.
                    (B) Limitation.--The authority provided by this 
                section shall be available only to the extent that 
                appropriations for the cost of the modification of any 
                Soviet-era debt pursuant to this section are made in 
                advance.
    (b) Implementation of Soviet-Era Debt Reduction.--
            (1) In general.--Any reduction of Soviet-era debt pursuant 
        to subsection (a) shall be--
                    (A) implemented pursuant to the terms of a Russian 
                Nonproliferation Investment Agreement authorized under 
                section 318; and
                    (B) accomplished at the direction of the Facility 
                by the exchange of a new obligation for obligations of 
                the type referred to in such subsection that are 
                outstanding as of October 1, 2001.
            (2) Exchange of obligations.--
                    (A) In general.--The Facility shall notify the 
                Commodity Credit Corporation of an agreement entered 
                into under paragraph (1) with an eligible country to 
                exchange a new obligation for outstanding obligations.
                    (B) Additional requirement.--At the direction of 
                the Facility, the old obligations that are the subject 
                of the agreement shall be canceled and a new debt 
                obligation shall be established for the Russian 
                Federation relating to the agreement, and the Commodity 
                Credit Corporation shall make an adjustment in its 
                accounts to reflect the debt reduction.
    (c) Additional Terms and Conditions.--The following additional 
terms and conditions shall apply to the reduction of Soviet-era debt 
under subsection (a)(1) in the same manner as such terms and conditions 
apply to the reduction of debt under section 604(a)(1) of the 
Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 
1738c):
            (1) The provisions relating to repayment of principal under 
        section 605 of such Act.
            (2) The provisions relating to interest on new obligations 
        under section 606 of such Act.

SEC. 317. AUTHORITY TO ENGAGE IN DEBT-FOR-NONPROLIFERATION EXCHANGES 
              AND DEBT BUYBACKS.

    (a) Loans and Credits Eligible for Sale, Reduction, or 
Cancellation.--
            (1) Debt-for-nonproliferation exchanges.--
                    (A) In general.--Notwithstanding any other 
                provision of law, and subject to section 321, the 
                President may, in accordance with this section, sell to 
                any purchaser eligible under subparagraph (B), any loan 
                or credit described in section 315(a)(1), or any credit 
                described in section 316(a)(1), or on receipt of 
                payment from an eligible purchaser, reduce or cancel 
                any such loan or credit or portion thereof, only for 
                the purpose of facilitating a debt-for-nonproliferation 
                exchange to support activities that further United 
                States objectives described in the findings set forth 
                in section 312(a).
                    (B) Eligible purchaser.--A loan or credit may be 
                sold, reduced, or canceled under subparagraph (A) with 
                respect to a purchaser who presents plans satisfactory 
                to the President for using the loan or credit for the 
                purpose of engaging in debt-for-nonproliferation 
                exchange to support activities that further United 
                States objectives described in the findings set forth 
                in section 312(a).
                    (C) Consultation requirement.--Before the sale 
                under subparagraph (A) to any purchaser eligible under 
                subparagraph (B), or any reduction or cancellation 
                under subparagraph (A), of any loan or credit made to 
                the Russian Federation, the President shall consult 
                with that country concerning the amount of loans or 
                credits to be sold, reduced, or canceled and their uses 
                for debt-for-nonproliferation exchanges to support 
                activities that further United States objectives 
                described in the findings set forth in section 312(a).
                    (D) Authorization of appropriations.--For the cost 
                of the reduction of any debt pursuant to subparagraph 
                (A), amounts authorized to be appropriated under 
                sections 315(a)(3) and 316(a)(3) shall be made 
                available for such reduction of debt pursuant to 
                subparagraph (A).
            (2) Debt buybacks.--Notwithstanding any other provision of 
        law, the President may, in accordance with this section, sell 
        to the Russian Federation any loan or credit described in 
        section 315(a)(1) or any credit described in section 316(a)(1), 
        or on receipt of payment from the Russian Federation, reduce or 
        cancel such loan or credit or portion thereof, if the purpose 
        of doing so is to facilitate a debt buyback by the Russian 
        Federation of its own qualified debt and the Russian Federation 
        uses a substantial additional amount of its local currency to 
        support activities that further United States objectives 
        described in the findings set forth in section 312(a).
            (3) Limitation.--The authority provided by paragraphs (1) 
        and (2) shall be available only to the extent that 
        appropriations for the cost of the modification of any debt 
        pursuant to such paragraphs are made in advance.
            (4) Terms and conditions.--Notwithstanding any other 
        provision of law, the President shall, in accordance with this 
        section, establish the terms and conditions under which loans 
        and credits may be sold, reduced, or canceled pursuant to this 
        section.
            (5) Administration.--
                    (A) In general.--The Facility shall notify the 
                Administrator of the agency primarily responsible for 
                administering part I of the Foreign Assistance Act of 
                1961 or the Commodity Credit Corporation, as the case 
                may be, of purchasers that the President has determined 
                to be eligible under paragraph (1)(B), and shall direct 
                such agency or Corporation, as the case may be, to 
                carry out the sale, reduction, or cancellation of a 
                loan pursuant to such paragraph.
                    (B) Additional requirement.--Such agency or 
                Corporation, as the case may be, shall make an 
                adjustment in its accounts to reflect the sale, 
                reduction, or cancellation.
    (b) Deposit of Proceeds.--The proceeds from a sale, reduction, or 
cancellation of a loan sold, reduced, or canceled pursuant to this 
section shall be deposited in the United States Government account or 
accounts established for the repayment of such loan.

SEC. 318. RUSSIAN NONPROLIFERATION INVESTMENT AGREEMENT.

    (a) Authority.--Subject to section 321, the Secretary is 
authorized, in consultation with other appropriate officials of the 
Federal Government, to enter into an agreement with the Russian 
Federation concerning the use of the funds saved by that country as a 
result of any debt relief provided pursuant to this subtitle. An 
agreement entered into under this section may be referred to as the 
``Russian Nonproliferation Investment Agreement''.
    (b) Content of Agreement.--The Russian Nonproliferation Investment 
Agreement shall ensure that--
            (1) a significant proportion of the funds saved by the 
        Russian Federation as a result of any debt relief provided 
        pursuant to this subtitle is devoted to nonproliferation 
        programs and projects;
            (2) funding of each such program or project is approved by 
        the United States Government, either directly or through its 
        representation on any governing board that may be directed or 
        established to manage these funds;
            (3) administration and oversight of nonproliferation 
        programs and projects incorporate best practices from 
        established threat reduction and nonproliferation assistance 
        programs;
            (4) each program or project funded pursuant to the 
        Agreement is subject to audits conducted by or for the United 
        States Government;
            (5) unobligated funds for investments pursuant to the 
        Agreement are segregated from other Russian Federation funds 
        and invested in financial instruments guaranteed or insured by 
        the United States Government;
            (6) the funds that are devoted to programs and projects 
        pursuant to the Agreement are not subject to any taxation by 
        the Russian Federation;
            (7) all matters relating to the intellectual property 
        rights and legal liabilities of United States firms in a given 
        project are agreed upon before the expenditure of funds is 
        authorized for that project; and
            (8) not less than 75 percent of the funds made available 
        for each nonproliferation program or project under the 
        Agreement is spent in the Russian Federation.
    (c) Use of Existing Mechanisms.--It is the sense of Congress that, 
to the extent practicable, the boards and administrative mechanisms of 
existing threat reduction and nonproliferation programs should be used 
in the administration and oversight of programs and projects under the 
Agreement.

SEC. 319. STRUCTURE OF DEBT-FOR-NONPROLIFERATION ARRANGEMENTS.

    It is the sense of Congress that any debt-for-nonproliferation 
arrangements with the Russian Federation should provide for gradual 
debt relief over a period of years, with debt relief to be suspended if 
more than two years' worth of funds remain unobligated for approved 
nonproliferation programs or projects.

SEC. 320. INDEPENDENT MEDIA AND THE RULE OF LAW.

    Subject to section 321, of the agreed funds saved by the Russian 
Federation as a result of any debt relief provided pursuant to this 
subtitle, up to 10 percent may be used to promote a vibrant, 
independent media sector and the rule of law in the Russian Federation 
through an endowment to support the establishment of a ``Center for an 
Independent Press and the Rule of Law'' in the Russian Federation, 
which shall be directed by a joint United States-Russian Board of 
Directors in which the majority of members, including the chairman, 
shall be United States personnel, and which shall be responsible for 
management of the endowment, its funds, and the Center's programs.

SEC. 321. NONPROLIFERATION REQUIREMENT.

    (a) Proliferation to State Sponsors of Terrorism.--The authorities 
granted under sections 315, 316, 317, 318, and 320 may not be 
exercised, and funds may not be expended, unless and until--
            (1) the Russian Federation makes material progress in 
        stemming the flow of sensitive goods, technologies, material, 
        and know-how related to the design, development, and production 
        of weapons of mass destruction and the means to deliver them to 
        countries that have been determined by the Secretary, for the 
        purposes of section 40 of the Arms Export Control Act, section 
        620A of the Foreign Assistance Act, or section 6(j) of the 
        Export Administration Act of 1979, to have repeatedly provided 
        support for acts of international terrorism; and
            (2) the President certifies to the appropriate 
        congressional committees that the condition required in 
        paragraph (1) has been met.
    (b) Annual Determination.--If, in any annual report to Congress 
submitted pursuant to section 325, the President cannot certify that 
the Russian Federation continues to meet the condition required in 
subsection (a)(1), then, subject to the provisions of subsection (c), 
the authorities granted under under sections 315, 316, 317, 318, and 
320 may not be exercised, and funds may not be expended, unless and 
until such certification is made to the appropriate congressional 
committees.
    (c) Presidential Waiver.--The President may waive the requirements 
of subsection (b) for a fiscal year if the President determines that 
imposition of those requirements in that fiscal year would be counter 
to the national interest of the United States and so reports to the 
appropriate congressional committees.

SEC. 322. DISCUSSION OF RUSSIAN FEDERATION DEBT REDUCTION FOR 
              NONPROLIFERATION WITH OTHER CREDITOR STATES.

    The President and such other appropriate officials as the President 
may designate shall institute discussions in the Paris Club of creditor 
states with the objectives of--
            (1) reaching agreement that each member of the Paris Club 
        is authorized to negotiate debt exchanges with the Russian 
        Federation covering a portion of its bilateral debt, to finance 
        the accomplishment of nonproliferation and arms reduction 
        activities;
            (2) convincing other member states of the Paris Club, 
        especially the largest holders of Soviet-era Russian debt, to 
        dedicate significant proportions of their bilateral debt with 
        the Russian Federation to these purposes; and
            (3) reaching agreement, as appropriate, to establish a 
        unified debt exchange fund to manage and provide financial 
        transparency for the resources provided through the debt 
        exchanges.

SEC. 323. IMPLEMENTATION OF UNITED STATES POLICY.

    It is the sense of Congress that implementation of debt-for-
nonproliferation programs with the Russian Federation should be 
overseen by the Committee on Nonproliferation Assistance to the 
Independent States of the Former Soviet Union (established pursuant to 
section 334 of this Act).

SEC. 324. CONSULTATIONS WITH CONGRESS.

    The President shall consult with the appropriate congressional 
committees on a periodic basis to review the operations of the Facility 
and the Russian Federation's eligibility for benefits from the 
Facility.

SEC. 325. ANNUAL REPORT TO CONGRESS.

    Not later than December 31, 2002, and not later than December 31 of 
each year thereafter, the President shall prepare and transmit to 
Congress a report concerning the operation of the Facility during the 
fiscal year preceding the fiscal year in which the report is 
transmitted. The report on a fiscal year shall include--
            (1) a description of the activities undertaken by the 
        Facility during the fiscal year;
            (2) a description of any agreement entered into under this 
        subtitle;
            (3) a description of any grants that have been provided 
        pursuant to the agreement; and
            (4) a summary of the results of audits performed in the 
        fiscal year pursuant to the agreement.

          Subtitle C--Nonproliferation Assistance Coordination

SEC. 331. SHORT TITLE.

    This subtitle may be cited as the ``Nonproliferation Assistance 
Coordination Act of 2001''.

SEC. 332. FINDINGS.

    Congress finds that--
            (1) United States nonproliferation efforts in the 
        independent states of the former Soviet Union have achieved 
        important results in ensuring that weapons of mass destruction, 
        weapons-usable material and technology, and weapons-related 
        knowledge remain beyond the reach of terrorists and weapons-
        proliferating states;
            (2) although these efforts are in the United States 
        national security interest, the effectiveness of these efforts 
        suffers from a lack of coordination within and among United 
        States Government agencies;
            (3) increased spending and investment by the United States 
        private sector on nonproliferation efforts in the independent 
        states of the former Soviet Union, specifically, spending and 
        investment by the United States private sector in job creation 
        initiatives and proposals for unemployed Russian Federation 
        weapons scientists and technicians, are making an important 
        contribution in ensuring that knowledge related to weapons of 
        mass destruction remains beyond the reach of terrorists and 
        weapons-proliferating states; and
            (4) increased spending and investment by the United States 
        private sector on nonproliferation efforts in the independent 
        states of the former Soviet Union require the establishment of 
        a coordinating body to ensure that United States public and 
        private efforts are not in conflict, and to ensure that public 
        spending on efforts by the independent states of the former 
        Soviet Union is maximized to ensure efficiency and further 
        United States national security interests.

SEC. 333. INDEPENDENT STATES OF THE FORMER SOVIET UNION DEFINED.

    In this subtitle, the term ``independent states of the former 
Soviet Union'' has the meaning given the term in section 3 of the 
FREEDOM Support Act (22 U.S.C. 5801).

SEC. 334. ESTABLISHMENT OF COMMITTEE ON NONPROLIFERATION ASSISTANCE TO 
              THE INDEPENDENT STATES OF THE FORMER SOVIET UNION.

    (a) Establishment.--There is established within the executive 
branch of the Government an interagency committee known as the 
``Committee on Nonproliferation Assistance to the Independent States of 
the Former Soviet Union'' (in this subtitle referred to as the 
``Committee'').
    (b) Membership.--
            (1) In general.--The Committee shall be composed of five 
        members, as follows:
                    (A) A representative of the Department of State 
                designated by the Secretary of State.
                    (B) A representative of the Department of Energy 
                designated by the Secretary of Energy.
                    (C) A representative of the Department of Defense 
                designated by the Secretary of Defense.
                    (D) A representative of the Department of Commerce 
                designated by the Secretary of Commerce.
                    (E) A representative of the Assistant to the 
                President for National Security Affairs designated by 
                the Assistant to the President.
            (2) Level of representation.--The Secretary of a department 
        named in subparagraph (A), (B), (C), or (D) of paragraph (1) 
        shall designate as the department's representative an official 
        of that department who is not below the level of an Assistant 
        Secretary of the department.
    (c) Chair.--The representative of the Assistant to the President 
for National Security Affairs shall serve as Chair of the Committee. 
The Chair may invite the head of any other department or agency of the 
United States to designate a representative of that department or 
agency to participate from time to time in the activities of the 
Committee.

SEC. 335. DUTIES OF THE COMMITTEE.

    (a) In General.--The Committee shall have primary continuing 
responsibility within the executive branch of the Government for--
            (1) monitoring United States nonproliferation efforts in 
        the independent states of the former Soviet Union; and
            (2) coordinating the implementation of United States policy 
        with respect to such efforts.
    (b) Duties Specified.--In carrying out the responsibilities 
described in subsection (a), the Committee shall--
            (1) arrange for the preparation of analyses on the issues 
        and problems relating to coordination within and among United 
        States departments and agencies on nonproliferation efforts of 
        the independent states of the former Soviet Union;
            (2) arrange for the preparation of analyses on the issues 
        and problems relating to coordination between the United States 
        public and private sectors on nonproliferation efforts in the 
        independent states of the former Soviet Union, including 
        coordination between public and private spending on 
        nonproliferation programs of the independent states of the 
        former Soviet Union and coordination between public spending 
        and private investment in defense conversion activities of the 
        independent states of the former Soviet Union;
            (3) provide guidance on arrangements that will coordinate, 
        de-conflict, and maximize the utility of United States public 
        spending on nonproliferation programs of the independent states 
        of the former Soviet Union to ensure efficiency and further 
        United States national security interests;
            (4) encourage companies and nongovernmental organizations 
        involved in nonproliferation efforts of the independent states 
        of the former Soviet Union to voluntarily report these efforts 
        to the Committee;
            (5) arrange for the preparation of analyses on the issues 
        and problems relating to the coordination between the United 
        States and other countries with respect to nonproliferation 
        efforts in the independent states of the former Soviet Union; 
        and
            (6) consider, and make recommendations to the President and 
        Congress with respect to, proposals for new legislation or 
        regulations relating to United States nonproliferation efforts 
        in the independent states of the former Soviet Union as may be 
        necessary.

SEC. 336. ADMINISTRATIVE SUPPORT.

    All United States departments and agencies shall provide, to the 
extent permitted by law, such information and assistance as may be 
requested by the Committee in carrying out its functions and activities 
under this subtitle.

SEC. 337. CONFIDENTIALITY OF INFORMATION.

    Information which has been submitted or received in confidence 
shall not be publicly disclosed, except to the extent required by law, 
and such information shall be used by the Committee only for the 
purpose of carrying out the functions and activities set forth in this 
subtitle.

SEC. 338. STATUTORY CONSTRUCTION.

    Nothing in this subtitle--
            (1) applies to the data-gathering, regulatory, or 
        enforcement authority of any existing United States department 
        or agency over nonproliferation efforts in the independent 
        states of the former Soviet Union, and the review of those 
        efforts undertaken by the Committee shall not in any way 
        supersede or prejudice any other process provided by law; or
            (2) applies to any activity that is reportable pursuant to 
        title V of the National Security Act of 1947 (50 U.S.C. 413 et 
        seq.).

          TITLE IV--EXPEDITING THE MUNITIONS LICENSING PROCESS

SEC. 401. LICENSE OFFICER STAFFING.

    (a) Funding.--Of the amounts authorized to be appropriated under 
the appropriations account entitled ``Diplomatic and Consular 
Programs'' for fiscal years 2002 and 2003, not less than $10,000,000 
shall be made available each such fiscal year for the Office of Defense 
Trade Controls of the Department of State for salaries and expenses.
    (b) Assignment of License Review Officers.--Effective January 1, 
2002, the Secretary shall assign to the Office of Defense Trade 
Controls of the Department of State a sufficient number of license 
review officers to ensure that the average weekly caseload for each 
officer does not exceed 40.
    (c) Detailees.--For the purpose of expediting license reviews, the 
Secretary of Defense should ensure that 10 military officers are 
continuously detailed to the Office of Defense Trade Controls of the 
Department of State on a nonreimbursable basis.

SEC. 402. FUNDING FOR DATABASE AUTOMATION.

    Of the amounts authorized to be appropriated under the 
appropriations account entitled ``Capital Investment Fund'' for fiscal 
years 2002 and 2003, not less than $4,000,000 shall be made available 
each such fiscal year for the Office of Defense Trade Controls of the 
Department of State for the modernization of information management 
systems.

SEC. 403. INFORMATION MANAGEMENT PRIORITIES.

    (a) Objective.--The Secretary shall establish a secure, Internet-
based system for the filing and review of applications for export of 
Munitions List items.
    (b) Establishment of an Electronic System.--Of the amounts made 
available pursuant to section 402, not less than $3,000,000 each such 
fiscal year shall be made available to fully automate the Defense Trade 
Application System, and to ensure that the system--
            (1) is a secure, electronic system for the filing and 
        review of Munitions List license applications;
            (2) is accessible by United States companies through the 
        Internet for the purpose of filing and tracking their Munitions 
        List license applications; and
            (3) is capable of exchanging data with--
                    (A) the Export Control Automated Support System of 
                the Department of Commerce;
                    (B) the Foreign Disclosure and Technology 
                Information System and the USXPORTS systems of the 
                Department of Defense;
                    (C) the Export Control System of the Central 
                Intelligence Agency; and
                    (D) the Proliferation Information Network System of 
                the Department of Energy.
    (c) Munitions List Defined.--In this section, the term ``Munitions 
List'' means the United States Munitions List of defense articles and 
defense services controlled under section 38 of the Arms Export Control 
Act (22 U.S.C. 2778).

SEC. 404. CONTRIBUTION TO THE AUTOMATED EXPORT SYSTEM.

    Of the amounts made available under section 402 for the fiscal 
years 2002 and 2003, not less than $250,000 for each fiscal year shall 
be available for--
            (1) providing the Department of State with full access to 
        the Automated Export System;
            (2) ensuring that the system is modified to meet the needs 
        of the Department of State that are consistent with the needs 
        of other United States Government agencies; and
            (3) providing operational support.

SEC. 405. ADJUSTMENT OF THRESHOLD AMOUNTS FOR CONGRESSIONAL REVIEW 
              PURPOSES.

    The Arms Export Control Act is amended--
            (1) in section 3(d) (22 U.S.C. 2753(d))--
                    (A) in paragraphs (1) and (3)(A), by striking ``The 
                President may not'' and inserting ``Subject to 
                paragraph (5), the President may not''; and
                    (B) by adding at the end of the following new 
                paragraph:
    ``(5) In the case of a transfer to a member country of the North 
Atlantic Treaty Organization (NATO) or Australia, Japan, or New Zealand 
that does not authorize a new sales territory that includes any country 
other than such countries, the limitations on consent of the President 
set forth in paragraphs (1) and (3)(A) shall apply only if the transfer 
is--
            ``(A) a transfer of major defense equipment valued (in 
        terms of its original acquisition cost) at $25,000,000 or more; 
        or
            ``(B) a transfer of defense articles or defense services 
        valued (in terms of its original acquisition cost) at 
        $100,000,000 or more).'';
            (2) in section 36 (22 U.S.C. 2776)--
                    (A) in subsection (b)--
                            (i) in paragraph (1), by striking ``(1) In 
                        the case of'' and inserting ``(1) Subject to 
                        paragraph (6), in the case of'';
                            (ii) in paragraph (5)(C), by striking ``(C) 
                        If'' and inserting ``(C) Subject to paragraph 
                        (6), if''; and
                            (iii) by adding at the end of the following 
                        new paragraph:
    ``(6) The limitation in paragraph (1) and the requirement in 
paragraph (5)(C) shall apply in the case of a letter of offer to sell 
to a member country of the North Atlantic Treaty Organization (NATO) or 
Australia, Japan, or New Zealand that does not authorize a new sales 
territory that includes any country other than such countries only if 
the letter of offer involves--
            ``(A) sale of major defense equipment under this Act for, 
        or enhancement or upgrade of major defense equipment at a cost 
        of, $25,000,000 or more, as the case may be; and
            ``(B) sale of defense articles or services for, or 
        enhancement or upgrade of defense articles or services at a 
        cost of, $100,000,000 or more, as the case may be; or
            ``(C) sale of design and construction services for, or 
        enhancement or upgrade of design and construction services at a 
        cost of, $300,000,000 or more, as the case may be.''; and
                    (B) in subsection (c)--
                            (i) in paragraph (1), by striking ``(1) In 
                        the case of'' and inserting ``(1) Subject to 
                        paragraph (5), in the case of''; and
                            (ii) by adding at the end the following new 
                        paragraph:
    ``(5) In the case of an application by a person (other than with 
regard to a sale under section 21 or 22 of this Act) for a license for 
the export to a member country of the North Atlantic Treaty 
Organization (NATO) or Australia, Japan, or New Zealand that does not 
authorize a new sales territory that includes any country other than 
such countries, the limitation on the issuance of the license set forth 
in paragraph (1) shall apply only if the license is for export of--
            ``(A) major defense equipment sold under a contract in the 
        amount of $25,000,000 or more; or
            ``(B) defense articles or defense services sold under a 
        contract in the amount of $100,000,000 or more.''; and
            (3) in section 63(a) (22 U.S.C. 2796b(a))--
                    (A) by striking ``In the case of'' and inserting 
                ``(1) Subject to paragraph (2), in the case of''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2) In the case of an agreement described in paragraph (1) that 
is entered into with a member country of the North Atlantic Treaty 
Organization (NATO) or Australia, Japan, or New Zealand, the limitation 
in paragraph (1) shall apply only if the agreement involves a lease or 
loan of--
            ``(A) major defense equipment valued (in terms of its 
        replacement cost less any depreciation in its value) at 
        $25,000,000 or more; or
            ``(B) defense articles valued (in terms of their 
        replacement cost less any depreciation in their value) at 
        $100,000,000 or more.''.

SEC. 406. PERIODIC NOTIFICATION OF PENDING APPLICATIONS FOR EXPORT 
              LICENSES.

    The Secretary shall submit, on a biannual basis, to the appropriate 
committees of Congress a report identifying--
            (1) each outstanding application for a license to export 
        under section 38 of the Arms Export Control Act for which final 
        administrative action has been withheld for longer than 180 
        days; and
            (2) the referral status of each such application and any 
        other relevant information.

             TITLE V--NATIONAL SECURITY ASSISTANCE STRATEGY

SEC. 501. ESTABLISHMENT OF THE STRATEGY.

    (a) Requirement.--Not later than 180 days after the date of 
enactment of this Act, and annually thereafter in connection with 
submission of congressional presentation materials for the foreign 
operations appropriations budget request, the Secretary 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 National Security Assistance 
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 
        administered 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) chapter 5 of part II of the Foreign Assistance Act of 
        1961 (22 U.S.C. 2347 et seq.); and
            (3) section 516 of the Foreign Assistance Act of 1961 (22 
        U.S.C. 2321i).

SEC. 502. SECURITY ASSISTANCE SURVEYS.

    (a) Utilization.--The Secretary 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 2002 
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 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.

                   TITLE VI--MISCELLANEOUS PROVISIONS

SEC. 601. NUCLEAR AND MISSILE NONPROLIFERATION IN SOUTH ASIA.

    (a) United States Policy.--It shall be the policy of the United 
States, consistent with its obligations under the Treaty on the Non-
Proliferation of Nuclear Weapons, to encourage and work with the 
governments of India and Pakistan to achieve the following objectives 
by September 30, 2003:
            (1) Continuation of a nuclear testing moratorium.
            (2) Commitment not to deploy nuclear weapons.
            (3) Agreement by both governments to bring their export 
        controls in line with the guidelines and requirements of the 
        Nuclear Suppliers Group.
            (4) Agreement by both governments to bring their export 
        controls in line with the guidelines and requirements of the 
        Zangger Committee.
            (5) Agreement by both governments to bring their export 
        controls in line with the guidelines, requirements, and annexes 
        of the Missile Technology Control Regime.
            (6) Establishment of a modern, effective system to protect 
        and secure nuclear devices and materiel from unauthorized use, 
        accidental employment, theft, espionage, misuse, or abuse.
            (7) Establishment of a modern, effective system to control 
        the export of sensitive dual-use items, technology, technical 
        information, and materiel that can be used in the design, 
        development, or production of weapons of mass destruction and 
        ballistic missiles.
            (8) Conduct of bilateral meetings between Indian and 
        Pakistani senior officials to discuss security issues, 
        establish confidence building measures, and increase 
        transparency with regard to nuclear policies, programs, 
        stockpiles, capabilities, and delivery systems.
    (b) Report.--Not later than March 1, 2003, the President shall 
submit to the appropriate committees of Congress a report describing 
United States efforts in pursuit of the objectives listed in subsection 
(a), the progress made toward the achievement of those objectives, and 
the likelihood that each objective will be achieved by September 30, 
2003.

SEC. 602. NONPROLIFERATION INTERESTS AND NEGOTIATION OF FREE TRADE 
              AGREEMENTS.

    (a) Sense of Congress.--It is the sense of Congress that the United 
States Trade Representative, in negotiating free trade agreements with 
foreign countries, should consult with the Secretaries of State, 
Defense, and Commerce, to ensure that each such agreement contains or 
is accompanied by specific commitments relating to nonproliferation and 
export controls.
    (b) Agreement With Singapore.--The United States Trade 
Representative shall ensure that any free trade agreement with 
Singapore contains or is accompanied by--
            (1) a specific commitment by Singapore to enact legislation 
        to provide for--
                    (A) export, transit, and transshipment controls for 
                defense and defense-related items and dual-use 
                technologies; and
                    (B) control over the brokering of transactions 
                relating to those items and technologies; and
            (2) a timetable of specific commitments to cooperate with 
        the United States in the field of nonproliferation and export 
        controls.

SEC. 603. REAL-TIME PUBLIC AVAILABILITY OF RAW SEISMOLOGICAL DATA.

    The head of the Air Force Technical Applications Center shall make 
available to the public, immediately upon receipt or as soon after 
receipt as is possible, all raw seismological data provided to the 
United States Government by any international monitoring organization 
that is directly responsible for seismological monitoring.

SEC. 604. DETAILING UNITED STATES GOVERNMENTAL PERSONNEL TO 
              INTERNATIONAL ARMS CONTROL AND NONPROLIFERATION 
              ORGANIZATIONS.

    (a) In General.--The Secretary, in consultation with the 
Secretaries of Defense and Energy and the heads of other relevant 
United States departments and agencies, as appropriate, shall develop 
measures to improve the process by which United States Government 
personnel may be detailed to international arms control and 
nonproliferation organizations without adversely affecting the pay or 
career advancement of such personnel.
    (b) Report Required.--Not later than May 1, 2002, the Secretary 
shall submit a report to the Committee on Foreign Relations of the 
Senate and the Committee on International Relations of the House of 
Representatives setting forth the measures taken under subsection (a).

SEC. 605. DIPLOMATIC PRESENCE OVERSEAS.

    (a) Purpose.--The purpose of this section is to--
            (1) elevate the stature given United States diplomatic 
        initiatives relating to nonproliferation and political-military 
        issues; and
            (2) develop a group of highly specialized, technical 
        experts with country expertise capable of administering the 
        nonproliferation and political-military affairs functions of 
        the Department of State.
    (b) Authority.--To carry out the purposes of subsection (a), the 
Secretary is authorized to establish the position of Counselor for 
Nonproliferation and Political Military Affairs in United States 
diplomatic missions overseas to be filled by individuals who are career 
Civil Service officers or Foreign Service officers committed to follow-
on assignments in the Nonproliferation or Political Military Affairs 
Bureaus of the Department of State.
    (c) Training.--After being selected to serve as Counselor, any 
person so selected shall spend not less than 10 months in language 
training courses at the Foreign Service Institute, or in technical 
courses administered by the Department of Defense, the Department of 
Energy, or other appropriate departments and agencies of the United 
States, except that such requirement for training may be waived by the 
Secretary.

SEC. 606. PROTECTION AGAINST AGRICULTURAL BIOTERRORISM.

    Of funds made available to carry out programs under the Foreign 
Assistance Act of 1961, not less than $1,500,000 shall be made 
available to North Carolina State University for the purpose of 
fingerprinting crop and livestock pathogens in order to enhance the 
ability of the United States Government to detect new strains, 
determine their origin, and to facilitate research in pathogen 
epidemiology.

SEC. 607. COMPLIANCE WITH THE CHEMICAL WEAPONS CONVENTION.

    (a) Findings.--Congress makes the following findings:
            (1) On April 24, 1997, the Senate provided its advice and 
        consent to ratification of the Chemical Weapons Convention 
        subject to the condition that no sample collected in the United 
        States pursuant to the Convention would be transferred for 
        analysis to any laboratory outside the territory of the United 
        States.
            (2) Congress enacted the same condition into law as section 
        304(f)(1) of the Chemical Weapons Convention Implementation Act 
        of 1998 (22 U.S.C. 6724(f)(1)).
            (3) Part II, paragraph 57, of the Verification Annex of the 
        Convention requires that all samples taken during a challenge 
        inspection under the Convention shall be analyzed by at least 
        two laboratories that have been designated as capable of 
        conducting such testing by the OPCW.
            (4) The only United States laboratory currently designated 
        by the OPCW is the United States Army Edgewood Forensic Science 
        Laboratory.
            (5) In order to meet the requirements of condition (18) of 
        the resolution of ratification of the Chemical Weapons 
        Convention, and section 304 of the Chemical Weapons Convention 
        Implementation Act of 1998 (22 U.S.C. 6724), the United States 
        must possess, at a minimum, a second OPCW-designated 
        laboratory.
            (6) The possession of a second laboratory is necessary in 
        view of the potential for a challenge inspection to be 
        initiated against the United States by a foreign nation.
            (7) To qualify as a designated laboratory, a laboratory 
        must be certified under ISO Guide 25 or a higher standard, and 
        complete three proficiency tests. The laboratory must have the 
        full capability to handle substances listed on Schedule 1 of 
        the Annex on Schedules of Chemicals of the Chemical Weapons 
        Convention. In order to handle such substances in the United 
        States, a laboratory also must operate under a bailment 
        agreement with the United States Army.
            (8) Several existing United States commercial laboratories 
        have approved quality control systems, already possess bailment 
        agreements with the United States Army, and have the 
        capabilities necessary to obtain OPCW designation.
            (9) In order to bolster the legitimacy of United States 
        analysis of samples taken on its national territory, it is 
        preferable that the second designated laboratory is not a 
        United States Government facility. Further, it is not cost-
        effective to build and equip another Government laboratory to 
        meet OPCW designation standards when such capability already 
        exists in the private sector.
    (b) Establishment of Second Designated Laboratory.--
            (1) Directive.--Not later than February 1, 2002, the United 
        States National Authority, as designated under section 101 of 
        the Chemical Weapons Convention Implementation Act of 1998 (22 
        U.S.C. 6711), shall select, through competitive procedures, a 
commercial laboratory within the United States to pursue designation by 
the OPCW.
            (2) Delegation.--The National Authority may delegate the 
        authority and administrative responsibility for carrying out 
        paragraph (1) to one or more of the heads of the agencies 
        described in section 101(b)(2) of the Chemical Weapons 
        Convention Implementation Act of 1998 (22 U.S.C. 6711(b)(2)).
            (3) Report.--Not later than March 1, 2002, the National 
        Authority shall submit to the appropriate committees of 
        Congress a report detailing a plan for securing OPCW 
        designation of a third United States laboratory by December 1, 
        2003.
    (c) Definitions.--In this section:
            (1) Chemical weapons convention.--The term ``Chemical 
        Weapons Convention'' means the Convention on the Prohibition of 
        Development, Production, Stockpiling and Use of Chemical 
        Weapons and on Their Destruction, Opened for Signature and 
        Signed by the United States at Paris on January 13, 1993, 
        including the following protocols and memorandum of 
        understanding:
                    (A) The Annex on Chemicals.
                    (B) The Annex on Implementation and Verification.
                    (C) The Annex on the Protection of Confidential 
                Information.
                    (D) The Resolution Establishing the Preparatory 
                Commission for the Organization for the Prohibition of 
                Chemical Weapons.
                    (E) The Text on the Establishment of a Preparatory 
                Commission.
            (2) OPCW.--The term ``OPCW'' means the Organization for the 
        Prohibition of Chemical Weapons established under the 
        Convention.

             TITLE VII--AUTHORITY TO TRANSFER NAVAL VESSELS

SEC. 701. AUTHORITY TO TRANSFER NAVAL VESSELS TO CERTAIN FOREIGN 
              COUNTRIES.

    (a) Authority To Transfer.--
            (1) Brazil.--The President is authorized to transfer to the 
        Government of Brazil the ``Newport'' class tank landing ship 
        Peoria (LST1183). Such transfer shall be on a sale basis under 
        section 21 of the Arms Export Control Act (22 U.S.C. 2761).
            (2) Poland.--The President is authorized to transfer to the 
        Government of Poland the ``Oliver Hazard Perry'' class guided 
        missile frigate Wadsworth (FFG 9). Such transfer shall be on a 
        grant basis under section 516 of the Foreign Assistance Act of 
        1961 (22 U.S.C. 2321j).
            (3) Turkey.--The President is authorized to transfer to the 
        Government of Turkey the ``Oliver Hazard Perry'' class guided 
        missile frigates Estocin (FFG 15) and Samuel Eliot Morrison 
        (FFG 13). Each such transfer shall be on a sale basis under 
        section 21 of the Arms Export Control Act (22 U.S.C. 2761). The 
        President is further authorized to transfer to the Government 
        of Turkey the ``Knox'' class frigates Capadanno (FF 1093), 
        Thomas C. Hart (FF 1092), Donald B. Beary (FF 1085), McCandless 
        (FF 1084), Reasoner (FF 1063), and Bowen (FF 1079). The 
        transfer of these 6 ``Knox'' class frigates shall be on a grant 
        basis under section 516 of the Foreign Assistance Act of 1961 
        (22 U.S.C. 2321j).
    (b) Grants Not Counted in Annual Total of Transferred Excess 
Defense Articles.--The value of a vessel transferred to another country 
on a grant basis under section 516 of the Foreign Assistance Act of 
1961 (22 U.S.C. 2321j) pursuant to authority provided by subsection (a) 
shall not be counted for the 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.
    (c) Costs of Transfers.--Notwithstanding section 516(e)(1) of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2321j(e)(1)), any expense 
incurred by the United States in connection with a transfer authorized 
to be made on a grant basis under subsection (a) or (b) shall be 
charged to the recipient.
    (d) 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 this section, 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 United States Navy shipyard or other 
shipyard located in the United States.
    (e) Expiration of Authority.--The authority provided under 
subsection (a) shall expire at the end of the 2-year period beginning 
on the date of the enactment of this Act.




                                                       Calendar No. 276

107th CONGRESS

  1st Session

                                S. 1803

                          [Report No. 107-122]

_______________________________________________________________________

                                 A BILL

 To authorize appropriations under the Arms Export Control Act and the 
Foreign Assistance Act of 1961 for security assistance for fiscal years 
                 2002 and 2003, and for other purposes.

_______________________________________________________________________

                           December 11, 2001

                 Read twice and placed on the calendar