[Congressional Record Volume 140, Number 103 (Monday, August 1, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: August 1, 1994]


 
PROVIDING FOR CONCURRENCE BY HOUSE WITH AMENDMENTS TO SENATE AMENDMENTS 
TO H.R. 4429, AUTHORIZING TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN 
                               COUNTRIES

  Mr. HAMILTON. Mr. Speaker, I move to suspend the rules and agree to 
the resolution (H. Res. 499), providing for the concurrence by the 
House with amendments in the amendments of the Senate to H.R. 4429.
  The Clerk read as follows:

                              H. Res. 499

       Resolved, That upon the adoption of this resolution the 
     bill (H.R. 4429) (to authorize the transfer of naval vessels 
     to certain foreign countries) with the Senate amendments 
     thereto, shall be considered to have been taken from the 
     Speaker's table to the end that--
       (1) the Senate amendments numbered 1 through 11 be, and the 
     same are hereby, agreed to; and
       (2) the Senate amendment number 12 be, and the same is 
     hereby, agreed to with an amendment as follows:
       (A) Page 2, beginning on line 13, strike ``or any other 
     provision of law''.
       (B) Page 3, strike line 3 and all that follows through line 
     9.

  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. 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, as approved by the House on May 23, H.R. 
4429 authorizes the transfer of 17 Naval vessels through 2 sales, 1 
grant, and 14 leases to Argentina, Australia, Brazil, Chile, Malaysia, 
Morocco, Spain, Venezuela, and Taiwan.
  As amended by the other body, H.R. 4429 authorizes the transfer of 
only 7 naval vessels rather than 17 through 2 sales, 1 grant, and 4 
leases to Australia, Brazil, Morocco, and Spain.

                              {time}  1310

  The other body included two additional amendments that require the 
Secretary of Defense to certify that the amphibious lift capability of 
the U.S. Navy will remain at 2\1/2\ Marine Corps expeditionary 
brigades, and dedicated the proceeds received from these transfers to 
the Naval Operations and Maintenance account. The other body approved 
H.R. 4429 by voice vote on July 15.
  This resolution provides that the House concur in the Senate 
amendments to H.R. 4429 with further amendments. The House amendment 
deletes the use of proceeds section that was approved by the other 
body. In other words, moneys from sales and leases will go to the U.S. 
Treasury, not Naval Operations and Maintenance.
  The House amendment limits the certification required by the Senate 
to vessels transferred under this act. The House is taking this action 
because it is the best way to support the administration's request. It 
does not violate the balanced budget and Emergency Deficit Control Act 
and it continues to serve as a money earner and saver for the U.S. 
Treasury, and money multiplier for U.S. Navy and commercial shipyards.
  Mr. Speaker, we should approve this resolution. It is the right way 
to proceed with legislation governing the transfer of naval vessels.
  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 
House originally passed this legislation on May 23 by voice vote. On 
July 15, the Senate passed the legislation after making a number of 
changes and sent the legislation back to the House. Today, the House is 
agreeing with the Senate modifications in large part and sending the 
legislation back to the Senate for its consideration.
  As passed originally by the House, the purpose of this legislation 
was 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.
  The Senate reduced the number of ships available for transfer from 17 
to 7. The seven ships authorized to be transferred under this 
legislation, include five Newport class tank landing ships and two Knox 
class frigates, which are available for Australia, Brazil, Morocco, and 
Spain. Additionally, the Senate directed the Secretary of Defense to 
make certain certifications regarding amphibious lift capability before 
any naval vessels can be transferred.
  Finally the Senate mandated that the proceeds from the sales and 
leases of the seven ships should go directly to the Department of the 
Navy. This provision is being deleted pursuant to House action today. 
The committee believes strongly that instead proceeds from this 
legislation should flow directly to general receipts of the Treasury.
  Of the seven ships, the United States intends to sell two of these 
vessels to Australia pursuant to chapter 21 of the Arms Export Control 
Act and grant one of the ships to Morocco 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 four ships, the United States intends to 
transfer pursuant to chapter 6 of the AECA. During their lease periods, 
these four 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.
  All of the Newport tank landing ships authorized for transfer under 
this legislation remain in active service and would be transferred 
directly to the foreign countries once they are decommissioned.
  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 between $25.9 million and $33.6 
million in sales and lease revenues as a result of this legislation. 
Further, by transferring these ships, the United States will avoid 
$10.5 million in deactivation and storage costs. In addition, it is 
anticipated that the recipient countries will pay U.S. shipyards 
between $5 and $30 million for repair and reactivation work on these 
ships.
  I understand that the changes being made by the House in this 
legislation are acceptable to the other body and we look forward to 
their expeditious consideration of this legislation.
  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 have no requests for time, and I yield back the 
balance of my time.
  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. Sangmeister). The question is on the 
motion offered by the gentleman from Indiana [Mr. Hamilton] that the 
House suspend the rules and agree to the resolution, House Resolution 
499.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the resolution was agreed to.
  A motion to reconsider was laid on the table.

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