[Congressional Record Volume 140, Number 65 (Monday, May 23, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: May 23, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
 AUTHORIZING THE TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES

  Mr. HAMILTON. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 4429) to authorize the transfer of naval vessels to certain 
foreign countries, as amended.
  The Clerk read as follows:

                               H.R. 4429

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

     SECTION 1. AUTHORITY TO TRANSFER NAVAL VESSELS TO CERTAIN 
                   FOREIGN COUNTRIES.

       (a) Argentina.--The Secretary of the Navy is authorized to 
     transfer to the Government of Argentina the ``NEWPORT'' class 
     tank landing ship LA MOURE COUNTY (LST 1194). Such transfer 
     shall be on a lease basis under chapter 6 of the Arms Export 
     Control Act (22 U.S.C. 2796 and following).
       (b) Australia.--The Secretary of the Navy is authorized to 
     transfer to the Government of Australia the ``NEWPORT'' class 
     tank landing ships SAGINAW (LST 1188) and FAIRFAX COUNTY (LST 
     1193). Such transfers shall be on a sales basis under section 
     21 of the Arms Export Control Act (22 U.S.C. 2761; relating 
     to the foreign military sales program).
       (c) Brazil.--The Secretary of the Navy is authorized to 
     transfer to the Government of Brazil the ``NEWPORT'' class 
     tank landing ship CAYUGA (LST 1186) and the `'KNOX'' class 
     frigates MILLER (FF 1091) and VALDEZ (FF 1096). Such 
     transfers shall be on a lease basis under chapter 6 of the 
     Arms Export Control Act (22 U.S.C. 2796 and following).
       (d) Chile.--The Secretary of the Navy is authorized to 
     transfer to the Government of Chile the ``NEWPORT'' class 
     tank landing ships FREDERICK (LST 1184) and SAN BERNARDINO 
     (LST 1189). Such transfers shall be on a lease basis under 
     chapter 6 of the Arms Export Control Act (22 U.S.C. 2796 and 
     following).
       (e) Malaysia.--The Secretary of the Navy is authorized to 
     transfer to the Government of Malaysia the ``NEWPORT'' class 
     tank landing ship SPARTANBURG COUNTY (LST 1192). Such 
     transfer shall be on a lease basis under chapter 6 of the 
     Arms Export Control Act (22 U.S.C. 2796 and following).
       (f) Morocco.--The Secretary of the Navy is authorized to 
     transfer to the Government of Morocco the ``NEWPORT'' class 
     tank landing ship BRISTOL COUNTY (LST 1198). Such transfer 
     shall be on a grant basis under section 516 of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2321j; relating to 
     transfers of excess defense articles).
       (g) Spain.--The Secretary of the Navy is authorized to 
     transfer to the Government of Spain the ``NEWPORT'' class 
     tank landing ships HARLAN COUNTY (LST 1196) and BARNSTABLE 
     COUNTY (LST 1197). Such transfers shall be on a lease basis 
     under chapter 6 of the Arms Export Control Act (22 U.S.C. 
     2796 and following).
       (h) Taiwan.--The Secretary of the Navy is authorized to 
     transfer to the Coordination Council for North American 
     Affairs (which is the Taiwan instrumentality designated 
     pursuant to section 10(a) of the Taiwan Relations Act) the 
     ``NEWPORT'' class tank landing ships SCHENECTADY (LST 1185), 
     BOULDER (LST 1190), and RACINE (LST 1191). Such transfers 
     shall be on a lease basis under chapter 6 of the Arms Export 
     Control Act (22 U.S.C. 2796 and following).
       (i) Venezuela.--The Secretary of the Navy is authorized to 
     transfer to the Government of Venezuela the ``NEWPORT'' class 
     tank landing ships PEORIA (LST 1183 and TUSCALOOSA (LST 
     1187). Such transfers shall be on a lease basis under chapter 
     6 of the Arms Export Control Act (22 U.S.C. 2796 and 
     following).

     SEC. 2. WAIVER OF REQUIREMENTS FOR NOTIFICATION TO CONGRESS.

       The following provisions do not apply with respect to the 
     transfers authorized by this Act:
       (1) In case of a grant under section 516 of the Foreign 
     Assistance Act of 1961, subsection (c) of that section and 
     any similar provision.
       (2) In the case of a sale under section 21 of the Arms 
     Export Control Act, section 525 of the Foreign Operations, 
     Export Financing, and Related Programs Appropriations Act, 
     1994 (Public Law 103-87) and any similar, successor 
     provision.
       (3) In the case of a lease under section 61 of the Arms 
     Export Control Act, section 62 of that Act (except that 
     section 62 of that Act shall apply to any renewal of the 
     lease).

     SEC. 3. COSTS OF TRANSFERS.

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

     SEC. 4. EXPIRATION OF AUTHORITY.

       The authority granted by section 1 of this Act shall expire 
     at the end of the 2-year period beginning on the date of the 
     enactment of this Act, except that leases entered into during 
     that period under section 1 may be renewed.

     SEC. 5. REPAIR AND REFURBISHMENT OF VESSELS IN THE UNITED 
                   STATES.

       It is the sense of the Congress that the Secretary of the 
     Navy should request that each country to which a naval vessel 
     is transferred under this Act have such repair or 
     refurbishment of the vessel as is needed, before the vessel 
     joins the naval forces of that country, performed at 
     shipyards located in the United States, including United 
     States navy shipyards.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Indiana [Mr. Hamilton] will be recognized for 20 minutes, and the 
gentleman from New York [Mr. Gilman] will be recognized for 20 minutes.
  The Chair recognizes the gentleman from Indiana [Mr. Hamilton].
  Mr. HAMILTON. Mr. Speaker, I yield myself such time as I may consume.
  (Mr. HAMILTON asked and was given permission to revise and extend his 
remarks.)
  Mr. HAMILTON. Mr. Speaker, pursuant to the appropriate provisions of 
the Foreign Assistance Act and the Arms Export Control Act, this bill 
authorizes the transfer of 17 naval vessels, including the sale of two 
tank landing ships to Australia, the lease of tank landing ships, three 
to Taiwan, two each to Chile, Spain, and Venezuela, one each to 
Argentina, Brazil, and Malaysia; the lease of two Knox class frigates 
to Brazil; and the grant transfer of one tank landing ships to Morocco.
  H.R. 4429, as amended, also expresses the sense of Congress that the 
Secretary of the Navy should request that each country to which a naval 
vessel is transferred have any necessary repairs or refurbishments 
performed at shipyards located in the United States.
  The bill is in the United States' national interest for several 
reasons. It improves ties between the U.S. Navy and the navies of 
friendly and allied governments.
  It improves the naval capabilities of these friendly and allied 
governments.
  It saves the U.S. Government $21 million in initial first year 
inactivation costs.
  It generates $485 million in sales and lease revenues for the U.S. 
Treasury, and it generates an estimated $95 million in revenues for 
U.S. Navy or private shipyards in preparing these naval vessels for 
transfer.

                              {time}  1620

  Mr. Speaker, 10 of the ships being transferred are being retired 
directly out of active inventory of the U.S. Navy. A delay in the 
transfer of these ships could cost U.S. taxpayers $21 million in 
activation costs. Therefore, we need to move this bill as quickly as 
possible in order to meet the late June deadline for the first of these 
ships.
  Mr. Speaker, to sum up, these ship transfers will protect and promote 
U.S. interests, will generate $70 million in savings and revenues, and 
provide $95 million in work to U.S. shipyards. The House then has the 
opportunity to have a clear and positive impact on jobs, on the budget, 
and on U.S. foreign policy objectives through the passage of this bill.
  Mr. Speaker, I urge adoption of H.R. 4429, as amended.
  Mr. Speaker, I reserve the balance of my time.
  Mr. GILMAN. Mr. Speaker, I yield myself such time as I may consume.
  (Mr. GILMAN asked and was given permission to revise and extend his 
remarks.)
  Mr. GILMAN. Mr. Speaker, as Chairman Hamilton has indicated, the 
purpose of this legislation is to authorize the transfer of 17 ships to 
9 countries--Argentina, Australia, Brazil, Chile, Malaysia, Morocco, 
Spain, Taiwan, and Venezuela. The proposed transfers involve Knox class 
frigates and Newport class tank landing ships.
  Of the 17 ships, the United States intends to sell two of these 
vessels pursuant to chapter 21 of the Arms Export Control Act and grant 
one of the ships pursuant to section 516 of the Foreign Assistance Act. 
These three ships will not remain on the U.S. Naval Vessel Register.
  All of the remaining 14 ships, the United States intends to transfer 
pursuant to chapter 6 of the AECA. During their lease periods, these 14 
ships will be retained on the U.S. Naval Vessel Register while under 
the operational command and control of the designated foreign 
recipients. Under the lease terms, the United States may terminate the 
leases and have the vessels returned to U.S. custody should the need 
arise.
  Ten of the seventeen ships remain in active service and would be 
transferred directly to the foreign countries once they are 
decommissioned. The remaining seven ships are currently in inactive 
status and would require refurbishment and reactivation work before the 
recipient nation could take possession.
  The United States would incur no costs for the transfer of these 
naval vessels. Any expenses incurred in connection with the transfers 
would be charged to the recipient nation including maintenance, repair 
and reactivation costs, and training.
  The U.S. Government will receive a total of $45.8 million in sales 
and lease revenues as a result of this legislation. Further, by 
transferring these ships, the United States will avoid $21 million in 
deactivation and storage costs. In addition, it is anticipated that the 
recipient countries will pay U.S. shipyards a total of at least $95 
million for work related to reactivation of the seven inactive ships.
  Accordingly, Mr. Speaker, I urge my colleagues to support this 
measure. It advances the valuable, cooperative relationships the United 
States has established with each of these nations' navies and manages 
to save U.S. taxpayers a significant amount of money at the same time.
  Mr. Speaker, I yield such time as he may consume to the gentleman 
from California [Mr. Rohrabacher].
  Mr. ROHRABACHER. Mr. Speaker, I rise in support of H.R. 4429. I am 
pleased to note that H.R. 4429 includes my amendment, which was adopted 
in committee, and which will hopefully result in increased jobs at our 
shipyards. The amendment calls on the Secretary of the Navy to request 
that any repair work that these ships may need be done in U.S. 
shipyards. This will create or at least preserve U.S. jobs, and to the 
extent this work is performed in U.S. Navy shipyards, it will reduce 
the deficit because the leasing countries must pay the U.S. Treasury 
for work performed. It is estimated that the recipient countries will 
pay U.S. shipyards a total of at least $95 million for work related to 
reactivation of these ships. That is over and above the $45 million the 
United States will receive in lease revenue.
  I would like to thank the shipyards workers who strongly supported my 
amendment, and I would like to thank Chairman Hamilton for supporting 
it in this legislation. I think it makes H.R. 4429 a better bill. I 
recommend to the Committee that in future bills of this nature we 
include my amendment as a part of the bill from the beginning.
  Mr. GILMAN. Mr. Speaker, I thank the gentleman from California [Mr. 
Rohrabacher] for his supporting comments and for his amendment which 
makes a significant contribution to the bill.
  Mr. Speaker, I have no further requests for time, and I yield back 
the balance of my time.
  Mr. HAMILTON. Mr. Speaker, I yield myself such time as I may consume. 
Mr. Speaker, I just want to say to the gentleman from California that I 
thought he had a very constructive amendment to the bill; it 
strengthens the bill, and it does enhance the possibility that we will 
create more jobs in this country. I thank the gentleman for his 
constructive contribution.
  Mr. CUNNINGHAM. Mr. Speaker, I am pleased to rise in strong support 
of H.R. 4429. As my colleagues are aware, this resolution authorizes 
the transfer of 17 naval vessels to allied and friendly nations. This 
transfer will be conducted through 2 sales, 1 grant, and 14 leases, and 
will generate between $69.5 million and $164.5 million in savings and 
revenues for the Treasury of the United States.
  More importantly, Mr. Speaker, this bill also includes language 
expressing the sense of Congress that recipient countries have the 
vessel repaired or refurbished in American shipyards before adding them 
to their naval forces.
  This language parallels report language which I worked to include in 
the fiscal year 1995 Defense Authorization Act, H.R. 4301. The report 
language in House Report 103-499 states:

       As the Navy reduces the number of ships in the fleet, 
     Congress has permitted, on a case-by-case basis, the transfer 
     or lease of excess ships to allied nations. These vessels do 
     not have to be repaired in U.S. shipyards, however. In 
     recognition of the policy to provide only operationally safe 
     and supportable vessels to our allies, the committee 
     recommends that all Navy vessels, as a condition of transfer 
     or lease, be repaired and prepared for transit in U.S. 
     shipyards.

  I trust that the Navy and Defense Departments will take heed of these 
provisions. While I do not oppose these transfers, I wish to make clear 
my strong opposition to any transfer which allows a ship to be repaired 
or overhauled in foreign shipyards.
  There is no better way to support our ship repair industry than to 
ensure that these vessels are repaired and prepared for transit in U.S. 
shipyards. By enforcing this requirement, we ensure that our allies 
receive top quality U.S. vessels. In addition, this measure will bring 
in an estimated $95 million in revenues for government and private 
shipyards that prepare the vessels for transfer. Invested in our 
American shipyards, it will create jobs for our hard-working citizens. 
That money will help support their families and pay the mortgages on 
their homes. It will help keep the American economy strong.
  Mr. Speaker, I urge my distinguished colleagues on both sides of the 
aisle to support H.R. 4429. It is a good bill that will promote the 
creation of jobs and the economic strength of the United States.
  Mr. HAMILTON. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Montgomery). The question is on the 
motion offered by the gentleman from Indiana [Mr. Hamilton] that the 
House suspend the rules and pass the bill, H.R. 4429, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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