Congressional Record, Volume 142 Issue 48 (Tuesday, April 16, 1996)

[Congressional Record Volume 142, Number 48 (Tuesday, April 16, 1996)]
[House]
[Pages H3423-H3433]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

AMENDING FOREIGN ASSISTANCE ACT OF 1961 AND ARMS EXPORT CONTROL ACT

Mr. GILMAN. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 3121) to amend the Foreign Assistance Act of 1961 and the
Arms Export Control Act to make improvements to certain defense and
security assistance provisions under those acts, to authorize the
transfer of naval vessels to certain foreign countries, and for other
purposes, as amended.
The Clerk read as follows:

H.R. 3121

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

SECTION 1. TABLE OF CONTENTS.

The table of contents of this Act is as follows:

Sec. 1. Table of contents.

TITLE I--DEFENSE AND SECURITY ASSISTANCE

Chapter 1--Military And Related Assistance

Sec. 101. Terms of loans under the Foreign Military Financing program.
Sec. 102. Additional requirements under the Foreign Military Financing
program.
Sec. 103. Drawdown special authorities.
Sec. 104. Transfer of excess defense articles.
Sec. 105. Excess defense articles for certain European countries.

Chapter 2--International Military Education and Training

Sec. 111. Assistance for Indonesia.
Sec. 112. Additional requirements.

Chapter 3--Antiterrorism Assistance

Sec. 121. Antiterrorism training assistance.
Sec. 122. Research and development expenses.

Chapter 4--Narcotics Control Assistance

Sec. 131. Additional requirements.
Sec. 132. Notification requirement.
Sec. 133. Waiver of restrictions for narcotics-related economic
assistance.

Chapter 5--Other Provisions

Sec. 141. Standardization of congressional review procedures for arms
transfers.
Sec. 142. Standardization of third country transfers of defense
articles.
Sec. 143. Increased standardization, rationalization, and
interoperability of assistance and sales programs.
Sec. 144. Definition of significant military equipment.
Sec. 145. Elimination of annual reporting requirement relating to the
Special Defense Acquisition Fund.
Sec. 146. Cost of leased defense articles that have been lost or
destroyed.
Sec. 147. Designation of major non-NATO allies.
Sec. 148. Certification thresholds.
Sec. 149. Depleted uranium ammunition.
Sec. 150. End-use monitoring of defense articles and defense services.
Sec. 151. Brokering activities relating to commercial sales of defense
articles and services.
Sec. 152. Return and exchanges of defense articles previously
transferred pursuant to the arms export control act.
Sec. 153. National security interest determination to waive
reimbursement of depreciation for leased defense
articles.
Sec. 154. Eligibility of Panama under Arms Export Control Act.

TITLE II--TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES

Sec. 201. Authority to transfer naval vessels.
Sec. 202. Costs of transfers.
Sec. 203. Expiration of authority.
Sec. 204. Repair and refurbishment of vessels in United States
shipyards.
TITLE I--DEFENSE AND SECURITY ASSISTANCE

CHAPTER 1--MILITARY AND RELATED ASSISTANCE

SEC. 101. TERMS OF LOANS UNDER THE FOREIGN MILITARY FINANCING
PROGRAM.

Section 31(c) of the Arms Export Control Act (22 U.S.C.
2771(c)) is amended to read as follows:
``(c) Loans available under section 23 shall be provided at
rates of interest that are not less than the current average
market yield on outstanding marketable obligations of the
United States of comparable maturities.''.

SEC. 102. ADDITIONAL REQUIREMENTS UNDER THE FOREIGN MILITARY
FINANCING PROGRAM.

(a) Audit of Certain Private Firms.--Section 23 of the Arms
Export Control Act (22 U.S.C. 2763) is amended by adding at
the end the following new subsection:
``(f) For each fiscal year, the Secretary of Defense, as
requested by the Director of the Defense Security Assistance
Agency, shall conduct audits on a nonreimbursable basis of
private firms that have entered into contracts with foreign
governments under which defense articles, defense services,
or design and construction services are to be procured by
such firms for such governments from financing under this
section.''.
(b) Notification Requirement With Respect to Cash Flow
Financing.--Section 23 of such Act (22 U.S.C. 2763), as
amended by this Act, is further amended by adding at the end
the following new subsection:
``(g)(1) For each country and international organization
that has been approved for cash flow financing under this
section, any letter of offer and acceptance or other purchase
agreement, or any amendment thereto, for a procurement of
defense articles, defense services, or design and
construction services in excess of $100,000,000 that is to be
financed in whole or in part with funds made available under
this Act or the Foreign Assistance Act of 1961 shall be
submitted to the congressional committees specified in
section 634A(a) of the Foreign Assistance Act of 1961 in
accordance with the procedures applicable to reprogramming
notifications under that section.
``(2) For purposes of this subsection, the term `cash flow
financing' has the meaning given such term in the second
subsection (d) of section 25.''.
(c) Limitations on Use of Funds for Direct Commercial
Contracts.--Section 23 of such Act (22 U.S.C. 2763), as
amended by this Act, is further amended by adding at the end
the following new subsection:
``(h) Of the amounts made available for a fiscal year to
carry out this section, not more than $100,000,000 for such
fiscal year may be made available for countries other than
Israel and Egypt for the purpose of financing the procurement
of defense articles, defense services, and design and
construction services that are not sold by the United States
Government under this Act.''.
(d) Annual Estimate and Justification for Sales Program.--
Section 25(a) of such Act (22 U.S.C. 2765(a)) is amended--
(1) by striking the ``and'' at the end of paragraph (11);
(2) by redesignating paragraph (12) as paragraph (13); and
(3) by inserting after paragraph (11) the following new
paragraph:
``(12)(A) a detailed accounting of all articles, services,
credits, guarantees, or any other form of assistance
furnished by the United States to each country and
international organization, including payments to the United
Nations, during the preceding fiscal year for the detection
and clearance of

[[Page H3424]]

landmines, including activities relating to the furnishing of
education, training, and technical assistance for the
detection and clearance of landmines; and
``(B) for each provision of law making funds available or
authorizing appropriations for demining activities described
in subparagraph (A), an analysis and description of the
objectives and activities undertaken during the preceding
fiscal year, including the number of personnel involved in
performing such activities; and''.

SEC. 103. DRAWDOWN SPECIAL AUTHORITIES.

(a) Unforeseen Emergency Drawdown.--Section 506(a)(1) of
the Foreign Assistance Act of 1961 (22 U.S.C. 2318(a)(1)) is
amended by striking ``$75,000,000'' and inserting
``$100,000,000''.
(b) Additional Drawdown.--Section 506 of such Act (22
U.S.C. 2318) is amended--
(1) in subsection (a)(2)(A), by striking ``defense articles
from the stocks'' and all that follows and inserting the
following: ``articles and services from the inventory and
resources of any agency of the United States Government and
military education and training from the Department of
Defense, the President may direct the drawdown of such
articles, services, and military education and training--
``(i) for the purposes and under the authorities of--
``(I) chapter 8 of part I (relating to international
narcotics control assistance);
``(II) chapter 9 of part I (relating to international
disaster assistance); or
``(III) the Migration and Refugee Assistance Act of 1962;
or
``(ii) for the purpose of providing such articles,
services, and military education and training to Vietnam,
Cambodia, and Laos as the President determines are
necessary--
``(I) to support cooperative efforts to locate and
repatriate members of the United States Armed Forces and
civilians employed directly or indirectly by the United
States Government who remain unaccounted for from the Vietnam
War; and
``(II) to ensure the safety of United States Government
personnel engaged in such cooperative efforts and to support
Department of Defense-sponsored humanitarian projects
associated with such efforts.'';
(2) in subsection (a)(2)(B), by striking ``$75,000,000''
and all that follows and inserting ``$150,000,000 in any
fiscal year of such articles, services, and military
education and training may be provided pursuant to
subparagraph (A) of this paragraph--
``(i) not more than $75,000,000 of which may be provided
from the drawdown from the inventory and resources of the
Department of Defense;
``(ii) not more than $75,000,000 of which may be provided
pursuant to clause (i)(I) of such subparagraph; and
``(iii) not more than $15,000,000 of which may be provided
to Vietnam, Cambodia, and Laos pursuant to clause (ii) of
such subparagraph.''; and
(3) in subsection (b)(1), by adding at the end the
following: ``In the case of drawdowns authorized by
subclauses (I) and (III) of subsection (a)(2)(A)(i),
notifications shall be provided to those committees at least
15 days in advance of the drawdowns in accordance with the
procedures applicable to reprogramming notifications under
section 634A.''.
(c) Notice to Congress of Exercise of Special
Authorities.--Section 652 of such Act (22 U.S.C. 2411) is
amended by striking ``prior to the date'' and inserting
``before''.

SEC. 104. TRANSFER OF EXCESS DEFENSE ARTICLES.

(a) In General.--Section 516 of the Foreign Assistance Act
of 1961 (22 U.S.C. 2321j) is amended to read as follows:

``SEC. 516. AUTHORITY TO TRANSFER EXCESS DEFENSE ARTICLES.

``(a) Authorization.--The President is authorized to
transfer excess defense articles under this section to
countries for which receipt of such articles was justified
pursuant to the annual congressional presentation documents
for military assistance programs, or for programs under
chapter 8 of part I of this Act, submitted under section
634 of this Act, or for which receipt of such articles was
separately justified to the Congress, for the fiscal year
in which the transfer is authorized.
``(b) Limitations on Transfers.--The President may transfer
excess defense articles under this section only if--
``(1) such articles are drawn from existing stocks of the
Department of Defense;
``(2) funds available to the Department of Defense for the
procurement of defense equipment are not expended in
connection with the transfer;
``(3) the transfer of such articles will not have an
adverse impact on the military readiness of the United
States;
``(4) with respect to a proposed transfer of such articles
on a grant basis, such a transfer is preferable to a transfer
on a sales basis, after taking into account the potential
proceeds from, and likelihood of, such sales, and the
comparative foreign policy benefits that may accrue to the
United States as the result of a transfer on either a grant
or sales basis;
``(5) the President determines that the transfer of such
articles will not have an adverse impact on the national
technology and industrial base and, particularly, will not
reduce the opportunities of entities in the national
technology and industrial base to sell new or used equipment
to the countries to which such articles are transferred; and
``(6) the transfer of such articles is consistent with the
policy framework for the Eastern Mediterranean established
under section 620C of this Act.
``(c) Terms of Transfers.--
``(1) No cost to recipient country.--Excess defense
articles may be transferred under this section without cost
to the recipient country.
``(2) Priority.--Notwithstanding any other provision of
law, the delivery of excess defense articles under this
section to member countries of the North Atlantic Treaty
Organization (NATO) on the southern and southeastern flank of
NATO and to major non-NATO allies on such southern and
southeastern flank shall be given priority to the maximum
extent feasible over the delivery of such excess defense
articles to other countries.
``(d) Waiver of Requirement for Reimbursement of Department
of Defense Expenses.--Section 632(d) shall not apply with
respect to transfers of excess defense articles (including
transportation and related costs) under this section.
``(e) Transportation and Related Costs.--
``(1) In general.--Except as provided in paragraph (2),
funds available to the Department of Defense may not be
expended for crating, packing, handling, and transportation
of excess defense articles transferred under the authority of
this section.
``(2) Exception.--The President may provide for the
transportation of excess defense articles without charge to a
country for the costs of such transportation if--
``(A) it is determined that it is in the national interest
of the United States to do so;
``(B) the recipient is a developing country receiving less
than $10,000,000 of assistance under chapter 5 of part II of
this Act (relating to international military education and
training) or section 23 of the Arms Export Control Act (22
U.S.C. 2763; relating to the Foreign Military Financing
program) in the fiscal year in which the transportation is
provided;
``(C) the total weight of the transfer does not exceed
25,000 pounds; and
``(D) such transportation is accomplished on a space
available basis.
``(f) Advance Notification to Congress for Transfer of
Certain Excess Defense Articles.--
``(1) In general.--The President may not transfer excess
defense articles that are significant military equipment (as
defined in section 47(9) of the Arms Export Control Act) or
excess defense articles valued (in terms of original
acquisition cost) at $7,000,000 or more, under this section
or under the Arms Export Control Act (22 U.S.C. 2751 et seq.)
until 15 days after the date on which the President has
provided notice of the proposed transfer to the congressional
committees specified in section 634A(a) in accordance with
procedures applicable to reprogramming notifications under
that section.
``(2) Contents.--Such notification shall include--
``(A) a statement outlining the purposes for which the
article is being provided to the country, including whether
such article has been previously provided to such country;
``(B) an assessment of the impact of the transfer on the
military readiness of the United States;
``(C) an assessment of the impact of the transfer on the
national technology and industrial base and, particularly,
the impact on opportunities of entities in the national
technology and industrial base to sell new or used equipment
to the countries to which such articles are to be
transferred; and
``(D) a statement describing the current value of such
article and the value of such article at acquisition.
``(g) Aggregate Annual Limitation.--
``(1) In general.--The aggregate value of excess defense
articles transferred to countries under this section in any
fiscal year may not exceed $350,000,000.
``(2) Effective date.--The limitation contained in
paragraph (1) shall apply only with respect to fiscal years
beginning after fiscal year 1996.
``(h) Congressional Presentation Documents.--Documents
described in subsection (a) justifying the transfer of excess
defense articles shall include an explanation of the general
purposes of providing excess defense articles as well as a
table which provides an aggregate annual total of transfers
of excess defense articles in the preceding year by country
in terms of offers and actual deliveries and in terms of
acquisition cost and current value. Such table shall indicate
whether such excess defense articles were provided on a grant
or sale basis.
``(i) Excess Coast Guard Property.--For purposes of this
section, the term `excess defense articles' shall be deemed
to include excess property of the Coast Guard, and the term
`Department of Defense' shall be deemed, with respect to such
excess property, to include the Coast Guard.''.
(b) Conforming Amendments.--
(1) Arms export control act.--Section 21(k) of the Arms
Export Control Act (22 U.S.C. 2761(k)) is amended by striking
``the President shall'' and all that follows and inserting
the following: ``the President shall determine that the sale
of such articles will not have an adverse impact on the
national technology and industrial base and, particularly,
will not reduce the opportunities of entities in the national
technology and industrial base to sell new or used equipment
to the countries to which such articles are transferred.''.

[[Page H3425]]

(2) Repeals.--The following provisions of law are hereby
repealed:
(A) Section 502A of the Foreign Assistance Act of 1961 (22
U.S.C. 2303).
(B) Sections 517 through 520 of the Foreign Assistance Act
of 1961 (22 U.S.C. 2321k through 2321n).
(C) Section 31(d) of the Arms Export Control Act (22 U.S.C.
2771(d)).

SEC. 105. EXCESS DEFENSE ARTICLES FOR CERTAIN EUROPEAN
COUNTRIES.

Notwithstanding section 516(e) of the Foreign Assistance
Act of 1961, during each of the fiscal years 1996 and 1997,
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 countries that are eligible to participate
in the Partnership for Peace and that are eligible for
assistance under the Support for East European Democracy
(SEED) Act of 1989.

CHAPTER 2--INTERNATIONAL MILITARY EDUCATION AND TRAINING

SEC. 111. ASSISTANCE FOR INDONESIA.

Funds made available for fiscal years 1996 and 1997 to
carry out chapter 5 of part II of the Foreign Assistance Act
of 1961 (22 U.S.C. 2347 et seq.) may be obligated for
Indonesia only for expanded military and education training
that meets the requirements of clauses (i) through (iv) of
the second sentence of section 541 of such Act (22 U.S.C.
2347).

SEC. 112. ADDITIONAL REQUIREMENTS.

(a) General Authority.--Section 541 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2347) is amended in the
second sentence in the matter preceding clause (i) by
inserting ``and individuals who are not members of the
government'' after ``legislators''.
(b) Exchange Training.--Section 544 of such Act (22 U.S.C.
2347c) is amended--
(1) by striking ``In carrying out this chapter'' and
inserting ``(a) In carrying out this chapter''; and
(2) by adding at the end the following new subsection:
``(b) The President may provide for the attendance of
foreign military and civilian defense personnel at flight
training schools and programs (including test pilot schools)
in the United States without charge, and without charge to
funds available to carry out this chapter (notwithstanding
section 632(d) of this Act), if such attendance is pursuant
to an agreement providing for the exchange of students on a
one-for-one basis each fiscal year between those United
States flight training schools and programs (including test
pilot schools) and comparable flight training schools and
programs of foreign countries.''.
(c) Assistance for Certain High-Income Foreign Countries.--
(1) Amendment to the foreign assistance act of 1961.--
Chapter 5 of part II of such Act (22 U.S.C. 2347 et seq.) is
amended by adding at the end the following new section:

``SEC. 546. PROHIBITION ON GRANT ASSISTANCE FOR CERTAIN HIGH
INCOME FOREIGN COUNTRIES.

``(a) In General.--None of the funds made available for a
fiscal year for assistance under this chapter may be made
available for assistance on a grant basis for any of the
high-income foreign countries described in subsection (b) for
military education and training of military and related
civilian personnel of such country.
``(b) High-Income Foreign Countries Described.--The high-
income foreign countries described in this subsection are
Austria, Finland, the Republic of Korea, Singapore, and
Spain.''.
(2) Amendment to the arms export control act.--Section
21(a)(1)(C) of the Arms Export Control Act (22 U.S.C. 2761)
is amended by inserting ``or to any high-income foreign
country (as described in that chapter)'' after ``Foreign
Assistance Act of 1961''.

CHAPTER 3--ANTITERRORISM ASSISTANCE

SEC. 121. ANTITERRORISM TRAINING ASSISTANCE.

(a) In General.--Section 571 of the Foreign Assistance Act
of 1961 (22 U.S.C. 2349aa) is amended by striking ``Subject
to the provisions of this chapter'' and inserting
``Notwithstanding any other provision of law that restricts
assistance to foreign countries (other than sections 502B and
620A of this Act)''.
(b) Limitations.--Section 573 of such Act (22 U.S.C.
2349aa-2) is amended--
(1) in the heading, by striking ``Specific Authorities
and'';
(2) by striking subsection (a);
(3) by redesignating subsections (b) through (f) as
subsections (a) through (e), respectively; and
(4) in subsection (c) (as redesignated)--
(A) by striking paragraphs (1) and (2);
(B) by redesignating paragraphs (3) through (5) as
paragraphs (1) through (3), respectively; and
(C) by amending paragraph (2) (as redesignated) to read as
follows:
``(2)(A) Except as provided in subparagraph (B), funds made
available to carry out this chapter shall not be made
available for the procurement of weapons and ammunition.
``(B) Subparagraph (A) shall not apply to small arms and
ammunition in categories I and III of the United States
Munitions List that are integrally and directly related to
antiterrorism training provided under this chapter if, at
least 15 days before obligating those funds, the President
notifies the appropriate congressional committees specified
in section 634A of this Act in accordance with the procedures
applicable to reprogramming notifications under such section.
``(C) The value (in terms of original acquisition cost) of
all equipment and commodities provided under this chapter in
any fiscal year may not exceed 25 percent of the funds made
available to carry out this chapter for that fiscal year.''.
(c) Annual Report.--Section 574 of such Act (22 U.S.C.
2349aa-3) is hereby repealed.
(d) Technical Corrections.--Section 575 (22 U.S.C. 2349aa-
4) and section 576 (22 U.S.C. 2349aa-5) of such Act are
redesignated as sections 574 and 575, respectively.

SEC. 122. RESEARCH AND DEVELOPMENT EXPENSES.

Funds made available for fiscal years 1996 and 1997 to
carry out chapter 8 of part II of the Foreign Assistance Act
of 1961 (22 U.S.C. 2349aa et seq.; relating to antiterrorism
assistance) may be made available to the Technical Support
Working Group of the Department of State for research and
development expenses related to contraband detection
technologies or for field demonstrations of such technologies
(whether such field demonstrations take place in the United
States or outside the United States).

CHAPTER 4--NARCOTICS CONTROL ASSISTANCE

SEC. 131. ADDITIONAL REQUIREMENTS.

(a) Policy and General Authorities.--Section 481(a) of the
Foreign Assistance Act (22 U.S.C. 2291(a)) is amended--
(1) in paragraph (1)--
(A) by redesignating subparagraphs (D) through (F) as
subparagraphs (E) through (G), respectively; and
(B) by inserting after subparagraph (C) the following new
subparagraph:
``(D) International criminal activities, particularly
international narcotics trafficking, money laundering, and
corruption, endanger political and economic stability and
democratic development, and assistance for the prevention and
suppression of international criminal activities should be a
priority for the United States.''; and
(2) in paragraph (4), by adding before the period at the
end the following: ``, or for other anticrime purposes''.
(b) Contributions and Reimbursement.--Section 482(c) of
that Act (22 U.S.C. 2291a(c)) is amended--
(1) by striking ``Contribution by Recipient Country.--To''
and inserting ``Contributions and Reimbursement.--(1) To'';
and
(2) by adding at the end the following new paragraphs:
``(2)(A) The President is authorized to accept
contributions from foreign governments to carry out the
purposes of this chapter. Such contributions shall be
deposited as an offsetting collection to the applicable
appropriation account and may be used under the same terms
and conditions as funds appropriated pursuant to this
chapter.
``(B) At the time of submission of the annual congressional
presentation documents required by section 634(a), the
President shall provide a detailed report on any
contributions received in the preceding fiscal year, the
amount of such contributions, and the purposes for which such
contributions were used.
``(3) The President is authorized to provide assistance
under this chapter on a reimbursable basis. Such
reimbursements shall be deposited as an offsetting collection
to the applicable appropriation and may be used under the
same terms and conditions as funds appropriated pursuant to
this chapter.''.
(c) Implementation of Law Enforcement Assistance.--Section
482 of such Act (22 U.S.C. 2291a) is amended by adding at the
end the following new subsections:
``(f) Treatment of Funds.--Funds transferred to and
consolidated with funds appropriated pursuant to this chapter
may be made available on such terms and conditions as are
applicable to funds appropriated pursuant to this chapter.
Funds so transferred or consolidated shall be apportioned
directly to the bureau within the Department of State
responsible for administering this chapter.
``(g) Excess Property.--For purposes of this chapter, the
Secretary of State may use the authority of section 608,
without regard to the restrictions of such section, to
receive nonlethal excess property from any agency of the
United States Government for the purpose of providing such
property to a foreign government under the same terms and
conditions as funds authorized to be appropriated for the
purposes of this chapter.''.

SEC. 132. NOTIFICATION REQUIREMENT.

(a) In General.--The authority of section 1003(d) of the
National Narcotics Control Leadership Act of 1988 (21 U.S.C.
1502(d)) may be exercised with respect to funds authorized to
be appropriated pursuant to the Foreign Assistance Act of
1961 (22 U.S.C. 2151 et seq.) and with respect to the
personnel of the Department of State only to the extent that
the appropriate congressional committees have been notified
15 days in advance in accordance with the reprogramming
procedures applicable under section 634A of that Act (22
U.S.C. 2394).
(b) Definition.--For purposes of this section, the term
``appropriate congressional committees'' means the Committee
on International Relations and the Committee on
Appropriations of the House of Representatives and the
Committee on Foreign Relations and the Committee on
Appropriations of the Senate.

[[Page H3426]]

SEC. 133. WAIVER OF RESTRICTIONS FOR NARCOTICS-RELATED
ECONOMIC ASSISTANCE.

For each of the fiscal years 1996 and 1997, narcotics-
related assistance under part I of the Foreign Assistance Act
of 1961 (22 U.S.C. 2151 et seq.) may be provided
notwithstanding any other provision of law that restricts
assistance to foreign countries (other than section 490(e) or
section 502B of that Act (22 U.S.C. 2291j(e) and 2304)) if,
at least 15 days before obligating funds for such assistance,
the President notifies the appropriate congressional
committees (as defined in section 481(e) of that Act (22
U.S.C. 2291(e))) in accordance with the procedures applicable
to reprogramming notifications under section 634A of that Act
(22 U.S.C. 2394).

CHAPTER 5--OTHER PROVISIONS

SEC. 141. STANDARDIZATION OF CONGRESSIONAL REVIEW PROCEDURES
FOR ARMS TRANSFERS.

(a) Third Country Transfers Under FMS Sales.--Section
3(d)(2) of the Arms Export Control Act (22 U.S.C. 2753(d)(2))
is amended--
(1) in subparagraph (A), by striking ``, as provided for in
sections 36(b)(2) and 36(b)(3) of this Act'';
(2) in subparagraph (B), by striking ``law'' and inserting
``joint resolution''; and
(3) by adding at the end the following:
``(C) If the President states in his certification under
subparagraph (A) or (B) that an emergency exists which
requires that consent to the proposed transfer become
effective immediately in the national security interests of
the United States, thus waiving the requirements of that
subparagraph, the President shall set forth in the
certification a detailed justification for his determination,
including a description of the emergency circumstances which
necessitate immediate consent to the transfer and a
discussion of the national security interests involved.
``(D)(i) Any joint resolution under this paragraph shall be
considered in the Senate in accordance with the provisions of
section 601(b) of the International Security Assistance and
Arms Export Control Act of 1976.
``(ii) For the purpose of expediting the consideration and
enactment of joint resolutions under this paragraph, a motion
to proceed to the consideration of any such joint resolution
after it has been reported by the appropriate committee shall
be treated as highly privileged in the House of
Representatives.''.
(b) Third Country Transfers Under Commercial Sales.--
Section 3(d)(3) of such Act (22 U.S.C. 2753(d)(3)) is
amended--
(1) by inserting ``(A)'' after ``(3)'';
(2) in the first sentence--
(A) by striking ``at least 30 calendar days''; and
(B) by striking ``report'' and inserting ``certification'';
and
(3) by striking the last sentence and inserting the
following: ``Such certification shall be submitted--
``(i) at least 15 calendar days before such consent is
given in the case of a transfer to a country which is a
member of the North Atlantic Treaty Organization or
Australia, Japan, or New Zealand; and
``(ii) at least 30 calendar days before such consent is
given in the case of a transfer to any other country,

unless the President states in his certification that an
emergency exists which requires that consent to the proposed
transfer become effective immediately in the national
security interests of the United States. If the President
states in his certification that such an emergency exists
(thus waiving the requirements of clause (i) or (ii), as the
case may be, and of subparagraph (B)) the President shall set
forth in the certification a detailed justification for his
determination, including a description of the emergency
circumstances which necessitate that consent to the proposed
transfer become effective immediately and a discussion of the
national security interests involved.
``(B) Consent to a transfer subject to subparagraph (A)
shall become effective after the end of the 15-day or 30-day
period specified in subparagraph (A)(i) or (ii), as the case
may be, only if the Congress does not enact, within that
period, a joint resolution prohibiting the proposed transfer.
``(C)(i) Any joint resolution under this paragraph shall be
considered in the Senate in accordance with the provisions of
section 601(b) of the International Security Assistance and
Arms Export Control Act of 1976.
``(ii) For the purpose of expediting the consideration and
enactment of joint resolutions under this paragraph, a motion
to proceed to the consideration of any such joint resolution
after it has been reported by the appropriate committee shall
be treated as highly privileged in the House of
Representatives.''.
(c) Commercial Sales.--Section 36(c)(2) of such Act (22
U.S.C. 2776(c)(2)) is amended by amending subparagraphs (A)
and (B) to read as follows:
``(A) in the case of a license for an export to the North
Atlantic Treaty Organization, any member country of that
Organization or Australia, Japan, or New Zealand, shall not
be issued until at least 15 calendar days after the Congress
receives such certification, and shall not be issued then if
the Congress, within that 15-day period, enacts a joint
resolution prohibiting the proposed export; and
``(B) in the case of any other license, shall not be issued
until at least 30 calendar days after the Congress receives
such certification, and shall not be issued then if the
Congress, within that 30-day period, enacts a joint
resolution prohibiting the proposed export.''.
(d) Commercial Manufacturing Agreements.--Section 36(d) of
such Act (22 U.S.C. 2776(d)) is amended--
(1) by inserting ``(1)'' after ``(d)'';
(2) by striking ``for or in a country not a member of the
North Atlantic Treaty Organization''; and
(3) by adding at the end the following:
``(2) A certification under this subsection shall be
submitted--
``(A) at least 15 days before approval is given in the case
of an agreement for or in a country which is a member of the
North Atlantic Treaty Organization or Australia, Japan, or
New Zealand; and
``(B) at least 30 days before approval is given in the case
of an agreement for or in any other country;

unless the President states in his certification that an
emergency exists which requires the immediate approval of the
agreement in the national security interests of the United
States.
``(3) If the President states in his certification that an
emergency exists which requires the immediate approval of the
agreement in the national security interests of the United
States, thus waiving the requirements of paragraph (4), he
shall set forth in the certification a detailed justification
for his determination, including a description of the
emergency circumstances which necessitate the immediate
approval of the agreement and a discussion of the national
security interests involved.
``(4) Approval for an agreement subject to paragraph (1)
may not be given under section 38 if the Congress, within the
15-day or 30-day period specified in paragraph (2)(A) or (B),
as the case may be, enacts a joint resolution prohibiting
such approval.
``(5)(A) Any joint resolution under paragraph (4) shall be
considered in the Senate in accordance with the provisions of
section 601(b) of the International Security Assistance and
Arms Export Control Act of 1976.
``(B) For the purpose of expediting the consideration and
enactment of joint resolutions under paragraph (4), a motion
to proceed to the consideration of any such joint resolution
after it has been reported by the appropriate committee shall
be treated as highly privileged in the House of
Representatives.''.
(e) Government-to-Government Leases.--
(1) Congressional review period.--Section 62 of such Act
(22 U.S.C. 2796a) is amended--
(A) in subsection (a), by striking ``Not less than 30 days
before'' and inserting ``Before'';
(B) in subsection (b)--
(i) by striking ``determines, and immediately reports to
the Congress'' and inserting ``states in his certification'';
and
(ii) by adding at the end of the subsection the following:
``If the President states in his certification that such an
emergency exists, he shall set forth in the certification a
detailed justification for his determination, including a
description of the emergency circumstances which necessitate
that the lease be entered into immediately and a discussion
of the national security interests involved.''; and
(C) by adding at the end of the section the following:
``(c) The certification required by subsection (a) shall be
transmitted--
``(1) not less than 15 calendar days before the agreement
is entered into or renewed in the case of an agreement with
the North Atlantic Treaty Organization, any member country of
that Organization or Australia, Japan, or New Zealand; and
``(2) not less than 30 calendar days before the agreement
is entered into or renewed in the case of an agreement with
any other organization or country.''.
(2) Congressional disapproval.--Section 63(a) of such Act
(22 U.S.C. 2796b(a)) is amended--
(A) by striking ``(a)(1)'' and inserting ``(a)'';
(B) by striking out the ``30 calendar days after receiving
the certification with respect to that proposed agreement
pursuant to section 62(a),'' and inserting in lieu thereof
``the 15-day or 30-day period specified in section 62(c) (1)
or (2), as the case may be,''; and
(C) by striking paragraph (2).
(f) Effective Date.--The amendments made by this section
apply with respect to certifications required to be submitted
on or after the date of the enactment of this Act.

SEC. 142. STANDARDIZATION OF THIRD COUNTRY TRANSFERS OF
DEFENSE ARTICLES.

Section 3 of the Arms Export Control Act (22 U.S.C. 2753)
is amended by inserting after subsection (a) the following
new subsection:
``(b) The consent of the President under paragraph (2) of
subsection (a) or under paragraph (1) of section 505(a) of
the Foreign Assistance Act of 1961 (as it relates to
subparagraph (B) of such paragraph) shall not be required for
the transfer by a foreign country or international
organization of defense articles sold by the United States
under this Act if--
``(1) such articles constitute components incorporated into
foreign defense articles;
``(2) the recipient is the government of a member country
of the North Atlantic Treaty Organization, the Government of
Australia, the Government of Japan, or the Government of New
Zealand;
``(3) the recipient is not a country designated under
section 620A of the Foreign Assistance Act of 1961;

[[Page H3427]]

``(4) the United States-origin components are not--
``(A) significant military equipment (as defined in section
47(9));
``(B) defense articles for which notification to Congress
is required under section 36(b); and
``(C) identified by regulation as Missile Technology
Control Regime items; and
``(5) the foreign country or international organization
provides notification of the transfer of the defense articles
to the United States Government not later than 30 days after
the date of such transfer.''.

SEC. 143. INCREASED STANDARDIZATION, RATIONALIZATION, AND
INTEROPERABILITY OF ASSISTANCE AND SALES
PROGRAMS.

Paragraph (6) of section 515(a) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2321i(a)(6)) is amended by striking
``among members of the North Atlantic Treaty Organization and
with the Armed Forces of Japan, Australia, and New Zealand''.

SEC. 144. DEFINITION OF SIGNIFICANT MILITARY EQUIPMENT.

Section 47 of the Arms Export Control Act (22 U.S.C. 2794)
is amended--
(1) in paragraph (7), by striking ``and'' at the end;
(2) in paragraph (8), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(9) `significant military equipment' means articles--
``(A) for which special export controls are warranted
because of the capacity of such articles for substantial
military utility or capability; and
``(B) identified on the United States Munitions List.''.

SEC. 145. ELIMINATION OF ANNUAL REPORTING REQUIREMENT
RELATING TO THE SPECIAL DEFENSE ACQUISITION
FUND.

(a) In General.--Section 53 of the Arms Export Control Act
(22 U.S.C. 2795b) is hereby repealed.
(b) Conforming Amendment.--Section 51(a)(4) of such Act (22
U.S.C. 2795(a)(4)) is amended--
(1) by striking ``(a)''; and
(2) by striking subparagraph (B).

SEC. 146. COST OF LEASED DEFENSE ARTICLES THAT HAVE BEEN LOST
OR DESTROYED.

Section 61(a)(4) of the Arms Export Control Act (22 U.S.C.
2796(a)(4)) is amended by striking ``and the replacement
cost'' and all that follows and inserting the following:
``and, if the articles are lost or destroyed while leased--
``(A) in the event the United States intends to replace the
articles
lost or destroyed, the replacement cost (less any
depreciation in the value) of the articles; or
``(B) in the event the United States does not intend to
replace the articles lost or destroyed, an amount not less
than the actual value (less any depreciation in the value)
specified in the lease agreement.''.

SEC. 147. DESIGNATION OF MAJOR NON-NATO ALLIES.

(a) Designation.--
(1) Notice to congress.--Chapter 2 of part II of the
Foreign Assistance Act of 1961 (22 U.S.C. 2311 et seq.), as
amended by this Act, is further amended by adding at the end
the following new section:

``SEC. 517. DESIGNATION OF MAJOR NON-NATO ALLIES.

``(a) Notice to Congress.--The President shall notify the
Congress in writing at least 30 days before--
``(1) designating a country as a major non-NATO ally for
purposes of this Act and the Arms Export Control Act (22
U.S.C. 2751 et seq.); or
``(2) terminating such a designation.
``(b) Initial Designations.--Australia, Egypt, Israel,
Japan, the Republic of Korea, and New Zealand shall be deemed
to have been so designated by the President as of the
effective date of this section, and the President is not
required to notify the Congress of such designation of those
countries.''.
(2) Definition.--Section 644 of such Act (22 U.S.C. 2403)
is amended by adding at the end the following:
``(q) `Major non-NATO ally' means a country which is
designated in accordance with section 517 as a major non-NATO
ally for purposes of this Act and the Arms Export Control Act
(22 U.S.C. 2751 et seq.).''.
(3) Existing definitions.--(A) The last sentence of section
21(g) of the Arms Export Control Act (22 U.S.C. 2761(g)) is
repealed.
(B) Section 65(d) of such Act (22 U.S.C. 2796d(d)) is
amended--
(i) by striking ``or major non-NATO''; and
(ii) by striking out ``or a'' and all that follows through
``Code''.
(b) Cooperative Training Agreements.--Section 21(g) of the
Arms Export Control Act (22 U.S.C. 2761(g)) is amended in the
first sentence by striking ``similar agreements'' and all
that follows through ``other countries'' and inserting
``similar agreements with countries''.

SEC. 148. CERTIFICATION THRESHOLDS.

(a) Increase in Dollar Thresholds.--The Arms Export Control
Act (22 U.S.C. 2751 et seq.) is amended--
(1) in section 3(d) (22 U.S.C. 2753(d))--
(A) in paragraphs (1) and (3), by striking ``$14,000,000''
each place it appears and inserting ``$25,000,000''; and
(B) in paragraphs (1) and (3), by striking ``$50,000,000''
each place it appears and inserting ``$75,000,000'';
(2) in section 36 (22 U.S.C. 2776)--
(A) in subsections (b)(1), (b)(5)(C), and (c)(1), by
striking ``$14,000,000'' each place it appears and inserting
``$25,000,000'';
(B) in subsections (b)(1), (b)(5)(C), and (c)(1), by
striking ``$50,000,000'' each place it appears and inserting
``$75,000,000''; and
(C) in subsections (b)(1) and (b)(5)(C), by striking
``$200,000,000'' each place it appears and inserting
``$300,000,000''; and
(3) in section 63(a) (22 U.S.C. 2796b(a))--
(A) by striking ``$14,000,000'' and inserting
``$25,000,000''; and
(B) by striking ``$50,000,000'' and inserting
``$75,000,000''.
(b) Effective Date.--The amendments made by subsection (a)
apply with respect to certifications submitted on or after
the date of the enactment of this Act.

SEC. 149. DEPLETED URANIUM AMMUNITION.

Chapter 1 of part III of the Foreign Assistance Act of 1961
(22 U.S.C. 2370 et seq.), as amended by this Act, is further
amended by adding at the end the following new section:

``SEC. 620G. DEPLETED URANIUM AMMUNITION.

``(a) Prohibition.--Except as provided in subsection (b),
none of the funds made available to carry out this Act or any
other Act may be made available to facilitate in any way the
sale of M-833 antitank shells or any comparable antitank
shells containing a depleted uranium penetrating component to
any country other than--
``(1) a country that is a member of the North Atlantic
Treaty Organization;
``(2) a country that has been designated as a major non-
NATO ally (as defined in section 644(q)); or
``(3) Taiwan.
``(b) Exception.--The prohibition contained in subsection
(a) shall not apply with respect to the use of funds to
facilitate the sale of antitank shells to a country if the
President determines that to do so is in the national
security interest of the United States.''.

SEC. 150. END-USE MONITORING OF DEFENSE ARTICLES AND DEFENSE
SERVICES.

(a) In General.--The Arms Export Control Act (22 U.S.C.
2751 et seq.) is amended by inserting after chapter 3 the
following new chapter:

``CHAPTER 3A--END-USE MONITORING OF DEFENSE ARTICLES AND DEFENSE
SERVICES

``SEC. 40A. END-USE MONITORING OF DEFENSE ARTICLES AND
DEFENSE SERVICES.

``(a) Establishment of Monitoring Program.--
``(1) In general.--In order to improve accountability with
respect to defense articles and defense services sold,
leased, or exported under this Act or the Foreign Assistance
Act of 1961 (22 U.S.C. 2151 et seq.), the President shall
establish a program which provides for the end-use monitoring
of such articles and services.
``(2) Requirements of program.--To the extent practicable,
such program--
``(A) shall provide for the end-use monitoring of defense
articles and defense services in accordance with the
standards that apply for identifying high-risk exports for
regular end-use verification developed under section 38(g)(7)
of this Act (commonly referred to as the `Blue Lantern'
program); and
``(B) shall be designed to provide reasonable assurance
that--
``(i) the recipient is complying with the requirements
imposed by the United States Government with respect to use,
transfers, and security of defense articles and defense
services; and
``(ii) such articles and services are being used for the
purposes for which they are provided.
``(b) Conduct of Program.--In carrying out the program
established under subsection (a), the President shall ensure
that the program--
``(1) provides for the end-use verification of defense
articles and defense services that incorporate sensitive
technology, defense articles and defense services that are
particularly vulnerable to diversion or other misuse, or
defense articles or defense services whose diversion or other
misuse could have significant consequences; and
``(2) prevents the diversion (through reverse engineering
or other means) of technology incorporated in defense
articles.
``(c) Report to Congress.--Not later than 6 months after
the date of the enactment of this section, and annually
thereafter as a part of the annual congressional presentation
documents submitted under section 634 of the Foreign
Assistance Act of 1961, the President shall transmit to the
Congress a report describing the actions taken to implement
this section, including a detailed accounting of the costs
and number of personnel associated with the monitoring
program.
``(d) Third Country Transfers.--For purposes of this
section, defense articles and defense services sold, leased,
or exported under this Act or the Foreign Assistance Act of
1961 (22 U.S.C. 2151 et seq.) includes defense articles and
defense services that are transferred to a third country or
other third party.''.
(b) Effective Date.--Section 40A of the Arms Export Control
Act, as added by subsection (a), applies with respect to
defense articles and defense services provided before or
after the date of the enactment of this Act.

SEC. 151. BROKERING ACTIVITIES RELATING TO COMMERCIAL SALES
OF DEFENSE ARTICLES AND SERVICES.

(a) In General.--Section 38(b)(1)(A) of the Arms Export
Control Act (22 U.S.C. 2778(b)(1)(A)) is amended--

[[Page H3428]]

(1) in the first sentence, by striking ``As prescribed in
regulations'' and inserting ``(i) As prescribed in
regulations''; and
(2) by adding at the end the following new clause:
``(ii)(I) As prescribed in regulations issued under this
section, every person (other than an officer or employee of
the United States Government acting in official capacity) who
engages in the business of brokering activities with respect
to the manufacture, export, import, or transfer of any
defense article or defense service designated by the
President under subsection (a)(1), or in the business of
brokering activities with respect to the manufacture, export,
import, or transfer of any foreign defense article or defense
service (as defined in subclause (IV)), shall register with
the United States Government agency charged with the
administration of this section, and shall pay a registration
fee which shall be prescribed by such regulations.
``(II) Such brokering activities shall include the
financing, transportation, freight forwarding, or taking of
any other action that facilitates the manufacture, export, or
import of a defense article or defense service.
``(III) No person may engage in the business of brokering
activities described in subclause (I) without a license,
issued in accordance with this Act, except that no license
shall be required for such activities undertaken by or for an
agency of the United States Government--
``(aa) for use by an agency of the United States
Government; or
``(bb) for carrying out any foreign assistance or sales
program authorized by law and subject to the control of the
President by other means.
``(IV) For purposes of this clause, the term `foreign
defense article or defense service' includes any non-United
States defense article or defense service of a nature
described on the United States Munitions List regardless of
whether such article or service is of United States origin or
whether such article or service contains United States origin
components.''.
(b) Effective Date.--Section 38(b)(1)(A)(ii) of the Arms
Export Control Act, as added by subsection (a), shall apply
with respect to brokering activities engaged in beginning on
or after 120 days after the enactment of this Act.

SEC. 152. RETURN AND EXCHANGES OF DEFENSE ARTICLES PREVIOUSLY
TRANSFERRED PURSUANT TO THE ARMS EXPORT CONTROL
ACT.

(a) Repair of Defense Articles.--Section 21 of the Arms
Export Control Act (22 U.S.C. 2761) is amended by adding at
the end the following new subsection:
``(l) Repair of Defense Articles.--
``(1) In general.--The President may acquire a repairable
defense article from a foreign country or international
organization if such defense article--
``(A) previously was transferred to such country or
organization under this Act;
``(B) is not an end item; and
``(C) will be exchanged for a defense article of the same
type that is in the stocks of the Department of Defense.
``(2) Limitation.--The President may exercise the authority
provided in paragraph (1) only to the extent that the
Department of Defense--
``(A)(i) has a requirement for the defense article being
returned; and
``(ii) has available sufficient funds authorized and
appropriated for such purpose; or
``(B)(i) is accepting the return of the defense article for
subsequent transfer to another foreign government or
international organization pursuant to a letter of offer and
acceptance implemented in accordance with this Act; and
``(ii) has available sufficient funds provided by or on
behalf of such other foreign government or international
organization pursuant to a letter of offer and acceptance
implemented in accordance with this Act.
``(3) Requirement.--(A) The foreign government or
international organization receiving a new or repaired
defense article in exchange for a repairable defense article
pursuant to paragraph (1) shall, upon the acceptance by the
United States Government of the repairable defense article
being returned, be charged the total cost associated with the
repair and replacement transaction.
``(B) The total cost charged pursuant to subparagraph (A)
shall be the same as that charged the United States Armed
Forces for a similar repair and replacement transaction, plus
an administrative surcharge in accordance with subsection
(e)(1)(A) of this section.
``(4) Relationship to certain other provisions of law.--The
authority of the President to accept the return of a
repairable defense article as provided in subsection (a)
shall not be subject to chapter 137 of title 10, United
States Code, or any other provision of law relating to the
conclusion of contracts.''.
(b) Return of Defense Articles.--Section 21 of such Act (22
U.S.C. 2761), as amended by this Act, is further amended by
adding at the end the following new subsection:
``(m) Return of Defense Articles.--
``(1) In general.--The President may accept the return of a
defense article from a foreign country or international
organization if such defense article--
``(A) previously was transferred to such country or
organization under this Act;
``(B) is not significant military equipment (as defined in
section 47(9) of this Act); and
``(C) is in fully functioning condition without need of
repair or rehabilitation.
``(2) Limitation.--The President may exercise the authority
provided in paragraph (1) only to the extent that the
Department of Defense--
``(A)(i) has a requirement for the defense article being
returned; and
``(ii) has available sufficient funds authorized and
appropriated for such purpose; or
``(B)(i) is accepting the return of the defense article for
subsequent transfer to another foreign government or
international organization pursuant to a letter of offer and
acceptance implemented in accordance with this Act; and
``(ii) has available sufficient funds provided by or on
behalf of such other foreign government or international
organization pursuant to a letter of offer and acceptance
implemented in accordance with this Act.
``(3) Credit for transaction.--Upon acquisition and
acceptance by the United States Government of a defense
article under paragraph (1), the appropriate Foreign Military
Sales account of the provider shall be credited to reflect
the transaction.
``(4) Relationship to certain other provisions of law.--The
authority of the President to accept the return of a defense
article as provided in paragraph (1) shall not be subject to
chapter 137 of title 10, United States Code, or any other
provision of law relating to the conclusion of
contracts.''.
(c) Regulations.--Under the direction of the President, the
Secretary of Defense shall promulgate regulations to
implement subsections (l) and (m) of section 21 of the Arms
Export Control Act, as added by this section.

SEC. 153. NATIONAL SECURITY INTEREST DETERMINATION TO WAIVE
REIMBURSEMENT OF DEPRECIATION FOR LEASED
DEFENSE ARTICLES.

(a) In General.--Section 61(a) of the Arms Export Control
Act (22 U.S.C. 2796(a)) is amended--
(1) in the second sentence, by striking ``, or to any
defense article which has passed three-quarters of its normal
service life''; and
(2) by inserting after the second sentence the following
new sentence: ``The President may waive the requirement of
paragraph (4) for reimbursement of depreciation for any
defense article which has passed three-quarters of its normal
service life if the President determines that to do so is
important to the national security interest of the United
States.''.
(b) Effective Date.--The third sentence of section 61(a) of
the Arms Export Control Act, as added by subsection (a)(2),
shall apply only with respect to a defense article leased on
or after the date of the enactment of this Act.

SEC. 154. ELIGIBILITY OF PANAMA UNDER ARMS EXPORT CONTROL
ACT.

The Government of the Republic of Panama shall be eligible
to purchase defense articles and defense services under the
Arms Export Control Act (22 U.S.C. 2751 et seq.), except as
otherwise specifically provided by law.
TITLE II--TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES

SEC. 201. AUTHORITY TO TRANSFER NAVAL VESSELS.

(a) Egypt.--The Secretary of the Navy is authorized to
transfer to the Government of Egypt the ``OLIVER HAZARD PERRY
CLASS'' frigate GALLERY. Such transfer 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).
(b) Mexico.--The Secretary of the Navy is authorized to
transfer to the Government of Mexico the ``KNOX'' class
frigates STEIN (FF 1065) and MARVIN SHIELDS (FF 1066). 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) New Zealand.--The Secretary of the Navy is authorized
to transfer to the Government of New Zealand the ``STALWART''
class ocean surveillance ship TENACIOUS. Such transfer 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).
(d) Portugal.--The Secretary of the Navy is authorized to
transfer to the Government of Portugal the ``STALWART'' class
ocean surveillance ship AUDACIOUS. 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).
(e) Taiwan.--The Secretary of the Navy is authorized to
transfer to the Taipei Economic and Cultural Representative
Office in the United States (which is the Taiwan
instrumentality designated pursuant to section 10(a) of the
Taiwan Relations Act) the following:
(1) The ``KNOX'' class frigates AYLWIN (FF 1081), PHARRIS
(FF 1094), and VALDEZ (FF 1096). 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).
(2) The ``NEWPORT'' class tank landing ship NEWPORT (LST
1179). Such transfer shall be on a lease basis under section
61 of the Arms Export Control Act (22 U.S.C. 2796).
(f) Thailand.--The Secretary of the Navy is authorized to
transfer to the Government of Thailand the ``KNOX'' class
frigate OUELLET (FF 1077). Such transfer 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).

SEC. 202. COSTS OF TRANSFERS.

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

[[Page H3429]]

SEC. 203. EXPIRATION OF AUTHORITY.

The authority granted by section 201 shall expire at the
end of the 2-year period beginning on the date of the
enactment of this Act.

SEC. 204. REPAIR AND REFURBISHMENT OF VESSELS IN UNITED
STATES SHIPYARDS.

The Secretary of the Navy shall require, to the maximum
extent possible, as a condition of a transfer of a vessel
under this title, that the country to which the vessel is
transferred have such repair or refurbishment of the vessel
as is needed, before the vessel joins the naval forces of
that country, performed at a shipyard located in the United
States, including a United States Navy shipyard.

The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New
York [Mr. Gilman] and the gentleman from California [Mr. Lantos] will
each be recognized for 20 minutes.
The Chair recognizes the gentleman from New York [Mr. Gilman].
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, I am pleased to bring this legislation to
the floor of the House at this time.
The purpose of title I of this bill is to amend authorities under the
Foreign Assistance Act of 1961, as amended, and the Arms Export Control
Act to revise and consolidate defense and security assistance
authorities, in particular by updating policy and statutory
authorities.
The genesis of this effort began nearly 7 years ago, with H.R. 2655,
the International Cooperation Act of 1989. Subsequent legislation by
the then Committee on Foreign Affairs, including H.R. 2508, the
International Cooperation Act of 1991, and later bills, continued our
efforts to amend and update these important authorities.
On June 8, 1995, the House of Representatives passed H.R. 1561, the
American Overseas Interest Act of 1995, by a vote of 222 to 192. Title
XXXI of division C, the Foreign Aid Reduction Act of 1995, was
dedicated to defense and security assistance provisions. On March 12,
1996, the House agreed to the conference report on H.R. 1561 by a vote
of 226 to 172. The conference report, though, did not include
provisions from division C of the House-passed bill.
This legislation, H.R. 3121, continues the effort by our Committee on
International Relations to amend the Foreign Assistance Act and the
Arms Export Control Act to make improvements to defense and security
assistance provisions under those acts. The provisions included in
title I of this bill are nearly identical to title XXXI of H.R. 1561,
are the product of bipartisan effort and cooperation, and enjoy the
strong support of the Departments of State and Defense.
Central to consideration of this bill is the committee's view that
this legislation fulfills its responsibility as an authorizing
committee. Specifically, this legislation codifies in permanent law
authorizing language which has been too long carried on annual
appropriations measures.
The purpose of title II of this bill is to authorize the transfer of
naval vessels to certain foreign nations pursuant to the
administration's request of January 29, 1996, Title II of this bill
authorizes the transfer of 10 naval vessels, 8 sales, 1 by lease and 1
by grant, to the following nations: to Egypt, to Mexico, to New
Zealand, to Portugal, to Taiwan, and to Thailand.
According to our Department of Defense, the Chief of Naval Operations
has certified that these naval vessels are not essential to the defense
of our own Nation.
As detailed above, the United States plans to transfer eight naval
vessels by sale, pursuant to section 21 of the Arms Export Control Act.
One of the vessels will be transferred as a lease, pursuant to chapter
6 of the Arms Export Control Act, and one of the vessels will be
transferred as a grant pursuant to section 519 of the Foreign
Assistance Act of 1961, as amended.
The United States will incur no cost for the transfer of the naval
vessels under this legislation. The foreign recipients will be
responsible for all costs associated with the transfer of the vessels,
including maintenance, repairs, training and fleet turnover costs. Any
expenses incurred in connection with these transfers will be charged to
the foreign recipients.
Through the sale of these naval vessels, this legislation will
generate $72 million in revenue for the U.S. Treasury. In addition,
through repair and reactivation work, through service contracts,
ammunition sales, and savings generated from avoidance of storage and
deactivation costs, our Navy estimates that the legislation will
generate an additional $525 million in revenue for the U.S. Treasury
and for private U.S. firms.
I commend this bill to the House and I ask my colleagues for their
support.
Mr. Speaker, I reserve the balance of my time.
Mr. LANTOS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, first I would like to commend the distinguished chairman
of our committee for his leadership on this bill and on so many other
matters. I rise in strong support of this resolution.
Mr. Speaker, I yield 2 minutes to my good friend and distinguished
colleague, the gentleman from Massachusetts [Mr. Frank].
Mr. FRANK of Massachusetts. Mr. Speaker, I thank the gentleman from
California, and I want to join in congratulating his leadership, along
with the gentleman from New York in the previous resolution on the
Holocaust.
In general, this is good legislation. As someone who represents a
large number of Portuguese-Americans who are proud of the very strong,
thriving relationship between our two democratic nations, I am pleased
to see through the efforts of my colleagues the needs of the Portuguese
Navy have been in part accommodated.
But I am severely disappointed that this legislation continues a
pattern of rewarding the Government of Indonesia, which continues to
engage in some of the most oppressive and racist activities in the
world in their maltreatment of the people of East Timor. Indonesia's
record in East Timor is one of the great moral failings in the world,
and unfortunately it is a further moral failing that the rest of the
world stands back and allows the people of East Timor to be so
oppressed.
I understand that this is military and educational training.
Theoretically just for civilians, in ways it is supposed to help. But
you know when you are in East Timor being oppressed, when you are being
killed or imprisoned by this brutal regime, the fact the people doing
the killing and the Indonesians are a little better educated in civic
values than they otherwise might have been is no consolation. I regret
very much that this legislation continues that practice.
Last year I offered an amendment to strike from the foreign
operations appropriations bill all aid to Indonesia. The Committee on
Rules did not allow it. I want to announce now that I and others intend
to insist this time on our right to at least vote on that. It is bad
enough that this Congress goes along with rewarding the brutal actions
of the Government of Indonesia, but to deny us even a chance to vote
for it implicates our own procedures in that unfortunate aspect,
although obviously murder is a lot worse than our being able to vote. I
am sorry it is not included here, and I pledge we will do everything we
can to end the practice of rewarding the Indonesian Government until
and unless it stops its brutalization of the people of East Timor.
Mr. GILMAN. Mr. Speaker, I reserve the balance of my time.
Mr. LANTOS. Mr. Speaker, I am very pleased to yield 2 minutes to the
gentleman from Rhode Island [Mr. Kennedy], my good friend and
distinguished colleague.
Mr. KENNEDY of Rhode Island. Mr. Speaker, I would like to concur with
my colleague from Massachusetts [Mr. Frank], in that this bill should
not be on the Suspension Calendar as it relates to the inclusion of an
enhancement for Indonesia for the same reasons my colleagues just
spoke.
Indonesia has proven itself to be someone with no respect and regard
for the human rights of the East Timorese in the application of their
Government in East Timor. They have systematically used their
Government to oppose the East Timorese. They have terrorized,
brutalized, they have killed demonstrators in broad daylight in front
of international cameras. They will go to no end to show that they are
not worthy of the recognition that this enhancement gives them.
The whole idea of the enhancement is to say, ``Well, we will work
with you.''

[[Page H3430]]

{time} 1415

But understand, we will work to support democratic efforts. But if
there are no democratic efforts being undertaken, it is a little
presumptuous for us to think that simply by our recognition of East
Timor through this enhanced IMET that we are going to replace what is
not there. That is the problem with enhanced IMET.
My former colleague, Congressman Ron Machtly, was successful in
revoking IMET. It was a good thing that this Congress recognized it.
Nothing has changed. Indonesia still oppresses these Timorese, and that
is why this is not the time for us to be renewing IMET. That is why,
Mr. Chairman, as the gentleman can obviously tell, there are people
like myself, the gentlewoman from California [Ms. Pelosi], the
gentlewoman from New York [Mrs. Lowey], and others, the gentleman from
Massachusetts [Mr. Frank], who know this is not an issue where we
should be debating it on a Suspension Calendar. We have no problem
debating this as a bill on the floor itself, and that is the way it
should come before us.
Mr. Speaker, this bill contains provisions, as the gentleman from New
York said, which we all support. I would be the first to commend the
gentleman from New York [Mr. Gilman] for the inclusion of the
hydrographic vessel that goes to Portugal. But that is the proper role
for a suspension bill. The IMET is not. So while I support that
endeavor that the gentleman has put into the bill, this I have to
object to.
Mr. GILMAN. Mr. Speaker, I reserve the balance of my time.
Mr. LANTOS. Mr. Speaker, I yield 2 minutes to the gentlewoman from
New York [Mrs. Lowey].
Mrs. LOWEY. Mr. Speaker, I rise today in strong opposition to the
provision in this bill that authorizes international military education
and training [IMET] assistance for Indonesia.
In 1992, we voted to end all IMET assistance for Indonesia because of
that country's abysmal human rights record and their continued
oppression of the people of East Timor. Despite the lack of improvement
in Indonesia's human rights record, and the opposition of myself and
many of my colleagues, a modified IMET program was approved for
Indonesia in the Foreign Operations Appropriations Act for fiscal year
1996.
When this provision was added to the foreign aid bill last year, we
said we would monitor the human rights situation in Indonesia very
carefully and act accordingly this year. Well, the State Department's
Country Report on Indonesia was released last month, and according to
the report, ``The government continued to commit serious human rights
abuses.''
So what do we do a month after this report came out? We attempt to
slip reauthorization of IMET for Indonesia into a supposedly
noncontroversial bill that is being considered on the Suspension
Calendar. This is an unacceptable way to legislate.
Mr. Speaker, in the past we have debated this issue extensively. Last
year, I offered an amendment to the foreign aid bill to prohibit this
assistance from going to Indonesia. There is significant opposition in
Congress to Indonesian IMET. That doesn't sound noncontroversial to me.
A month ago, the State Department said that in Indonesia ``reports of
extrajudicial killings, disappearances, and torture of those in custody
by security forces increased.'' Not decreased. Not stayed the same.
Increased. Should we really be authorizing IMET assistance for this
government now when they have not addressed these critical human rights
issues? I don't think so.
Indonesia's policy in East Timor is about the oppression of people
who oppose Indonesia's right to torture, kill, and repress the people
of East Timor. It is about the 200,000 Timorese who have been
slaughtered since the Indonesian occupation in 1975--200,000 killed out
of a total population of 700,000. It is about genocide.
Mr. Speaker, this is not a noncontroversial issue, and should never
have been brought up under suspension.
Mr. GILMAN. Mr. Speaker, I yield 3 minutes to the gentleman from
Kansas [Mr. Brownback], a member of our committee.
(Mr. BROWNBACK asked and was given permission to revise and extend
his remarks.)
Mr. BROWNBACK. Mr. Speaker, let me begin by congratulating Chairman
Gilman for the hard work he and his staff have put into reforming the
defense and security assistance provisions incorporated in H.R. 3121.
I think H.R. 3121 represents a common sense approach to advancing our
foreign policy goals of promoting global security, ensuring the
security of U.S. citizens and U.S. allies around the world, and
encouraging democracy. However, the bill achieves these goals while
effectively reducing the amount of excess defense articles that will be
transferred to our allies on a grant or no-cost lease basis.
We need to use the grant and no-cost lease options sparingly so that
these programs recover as much money for the taxpayers as possible.
H.R. 3121 will force the Defense Department to drastically reduce the
number of no-cost leases and grants that are used to transfer excess
defense articles to our allies. The bill creates the national security
interest determination that the President will have to invoke in order
to provide a no-cost lease for excess defense articles.
Mr. Speaker, H.R. 3121 also requires the Pentagon to evaluate whether
excess defense articles should be transferred on a grant basis or on a
sale basis, depending upon what the potential proceeds would be from a
sale, what the likelihood of selling a defense article would be, and
what the foreign policy benefits of a transfer would be. Mr. Speaker, I
simply add that in this time of budgetary constraint and austerity, I
think this is a very good measure that we move forward with that, we
say to the Defense Department and we say to the administration, if you
are going to give away these ships, if you are going to give away these
airplanes, you better have a darn good reason to do it, because we are
broke and we need to be able to recognize and get as much funding as we
possibly can and have as much restraint here as possible.
That is in the bill, and I commend Chairman Gilman for inserting it.
Mr. BEREUTER. Mr. Speaker, will the gentleman yield?
Mr. BROWNBACK. I yield to the gentleman from Nebraska.
Mr. BEREUTER. Mr. Speaker, I thank the gentleman for focusing on the
changes and the reforms that are a part of this bill. The gentleman has
been active as well as Chairman Gilman and the ranking member.
Mr. GILMAN. Mr. Speaker, will the gentleman yield?
Mr. BROWNBACK. I yield to the gentleman from New York.
Mr. GILMAN. Mr. Speaker, I just want to commend the gentleman from
Kansas for his astute observations, analysis of the bill. He has been a
sound critic of the prior procedures that we have utilized in
transferring this equipment, and as a result of his efforts, a good
reform has come about. I thank the gentleman for his efforts.
Mr. BROWNBACK. I thank the gentleman very much.
Mr. HAMILTON. Mr. Speaker, I yield myself 5 minutes.
Mr. Speaker, I want to commend Chairman Gilman for his leadership on
this bill. He has proceeded in a very constructive and bipartisan way.
The first part of the bill, an amendment of security assistance
authorities in the Foreign Assistance Act and the Arms Export Control
Act, has indeed been developed on a bipartisan basis under Chairman
Gilman's leadership. He has already spoken in some detail about the
bill, and I do not want to repeat his presentation.
Mr. Speaker, I just want to speak to two issues that have come up by
our colleagues. One is expanded IMET for Indonesia. The issue of
expanded IMET for Indonesia is troubling to some Members of this House.
The administration strongly supports the provision in this bill which
exactly tracks the Foreign Operations Act for this fiscal year. The
bill would not allow IMET assistance for traditional purposes. There
would be no lethal training.
This bill allows military education and training in Indonesia only
for very specific purposes: To foster greater respect for and
understanding of the principle of civilian control of the military, to
improve military justice in accordance with internationally recognized
human rights, and to improve counternarcotics cooperation. The purpose
of this so-called expanded IMET is solely to give the United States a
better handle in trying to alter the behavior of the Indonesian
Government and

[[Page H3431]]

the military which, of course, is the strongest, most influential
institution in the country.
Second, Members interested in arms control have raised questions
about this bill, as well. I believe this bill will help improve
Congress' oversight of the arms export control process. The bill gives
the Congress an additional 20 days' advance notification of arms export
commercial licenses and coproduction agreements. It will give Congress
the same window on these transactions as it now has on government-to-
government sales.
For the first time, it will give the Congress the ability to offer
resolutions of disapproval on third-country transfers and on
coproduction agreements. For the first time, the Congress will require
the executive branch to establish a comprehensive end-use monitoring
system on government-to-government arms transfers. For the first time,
Congress will put a genuine meaningful cap, $350 million, on the
transfer of excess defense articles in a fiscal year. The existing
ceiling, $250 million, has just too many loopholes in it.
Mr. Speaker, it is correct that this bill raises thresholds on arms
notifications, for example, from $14 million to $25 million on arms
sales. The last time thresholds were raised was 1981. So this change is
basically in response to inflation.
According to the Department of Defense, this change in the past year
would have resulted only in some four or five fewer notifications to
Congress per year out of a few hundred, I might say, each year, and all
of them to NATO countries.
The bill eliminates grants of international military education and
training for wealthy countries. The bill gives the administration more
flexibility in the use of limited assistance funds through increases in
drawdown authorities and changes in the authorities on antinarcotics
and antiterrorism assistance programs. For example, this bill will
enable the President to use assistance funds to work with Israel on
research and development efforts to combat terrorism.
Mr. Speaker, I also want to commend the chairman, Mr. Gilman, and the
administration, particularly the Navy, on the second part of the bill
on naval ship transfers. The Navy has heard the message about the
committee's opposition to large numbers of grant ships transfers. The
bill before us returns to the traditional pattern of ship transfers.
Eight ships in this package are sales, one is a lease, and one to
Portugal is a grant. Portugal, of course, is a NATO ally since the
beginning of NATO, has provided the United States access to facilities
since the 1940's, and last year renewed that access agreement in the
Azores.
This package also includes the sale of three 1970 vintage Knox-class
frigates to Taiwan and the lease of one transport ship to Taiwan. This
is part of our longstanding policy under the Taiwan Relations Act to
provide defense articles to Taiwan. I strongly support these ship
transfers.
Mr. Speaker, I strongly support the overall bill. I urge the adoption
of H.R. 3121.
Mr. Speaker, I reserve the balance of my time.
Mr. GILMAN. Mr. Speaker, I want to thank the gentleman from Indiana
for his supporting remarks.
Mr. Speaker, I reserve the balance of my time.
Mr. LANTOS. Mr. Speaker, I yield 2 minutes to the gentleman from
Tennessee [Mr. Clement].
Mr. CLEMENT. Mr. Speaker, I thank the gentleman from California [Mr.
Lantos] very much for yielding the time.
Mr. Speaker, today we face an international drug problem. Few of us
would deny this fact; fewer would stand by idly as the problem grows
worse.
I rise in support of H.R. 3121, Technical Amendments to Foreign
Assistance and Arms Export Control Acts. I wish to thank Chairman
Gilman and ranking member Hamilton of the International Relations
Committee for their dedicated effort to bring this bill to the floor. I
wish to also thank them for adding, at my request, necessary exceptions
for Panama to receive foreign military sales to combat the
international drug problem.
Ambassador and former Congressman Bill Hughes recently alerted me of
the importance for the Panamanian public forces to receive United
States military assistance. This is not an attempt on our part to
rebuild the Panamanian military, but merely an avenue through which we
can halt illegal drug trafficking. Costa Rica, for example, is
permitted such funding. We are discovering that when a country acquires
the tools to fend off this addictive disease, the cure is always within
reach.
I want to thank my colleagues for their support of this exception and
this bill. It is another step toward continuing and escalating our war
against drugs.
Mr. GILMAN. Mr. Speaker, I thank the gentleman for his concern about
the war against drugs and for making certain that this waiver was
inserted in the measure. We thank him for his support of the measure.
Mr. Speaker, I reserve the balance of my time.

{time} 1430

Mr. LANTOS. Mr. Speaker, I am delighted to yield 3 minutes to the
gentlewoman from San Francisco, CA [Ms. Pelosi] my neighbor, friend,
and distinguished colleague.
Ms. PELOSI. Mr. Speaker, I thank the gentleman from California [Mr.
Lantos] for yielding this time to me and for his leadership on issues,
international issues as well as others, that come before this House. I
have great respect for the chair of the committee, the gentleman from
New York [Mr. Gilman], and our ranking member, the gentleman from
Indiana [Mr. Hamilton].
I rise today to express concern about a couple of the provisions of
this legislation, H.R. 3121. I do not believe that the bill before us
should be on suspension calendar because it covers a great deal of
territory and with a minimal amount of debate and consideration on the
floor.
My two concerns, one I share with many of my colleagues, is about the
enhanced IMET to Indonesia for 1996-97 and my concern about arms
control. I listened very attentively to the remarks of the ranking
member, the gentleman from Indiana [Mr. Hamilton], and appreciate the
assurances he has given about the increased ceiling in terms of the
weapons, the sale, amount of the weapon sales, and the increased
discretion given to Congress to intervene in those sales, and I accept
his explanation, and I look forward to getting more information that is
contained in the bill.
But I would, for the record, like to express concern about the
international military and education training for Indonesia for 1996
and 1997. Our colleagues have said that this legislation tracks the
Committee on Foreign Operations legislation. Well, it does for 1996.
Many of us on the committee, and I serve on the Foreign Operations
Subcommittee, do not think that Indonesia should be getting any IMET.
We recognize that there are those who believe that this enhanced IMET
for the purposes of fostering civilian control in the role of an army
and a more democratic country, et cetera, I do not know if I have
defined Indonesia that way, but nonetheless this IMET, enhanced IMET,
could be useful. And in that spirit of cooperation we accepted the
compromise proposed graciously by our chairman, the gentleman from
Alabama [Mr. Callahan], with the understanding that it was only for
1996 and the program would be carefully monitored. We accepted the
compromise but remain convinced nonetheless that Indonesia should not
receive IMET funds.
Now we see before us, in the bill before us, extending the IMET for
1997 despite the fact the record shows continuing serious human rights
abuses by the armed forces in Indonesia that several of our colleagues
referenced specifically in East Timor. We will continue the debate on
this important issue as the Committee on Foreign Operations considers
fiscal year 1997.
I mentioned my concerns about the arms sales and think there could be
dangerous consequences, but, as I say, accept the explanation extended
by the gentleman from Indiana [Mr. Hamilton]. While the notification
process may be considered cumbersome by some in the bureaucracy,
congressional oversight helps insure that the taxpayer dollars are well
spent.

[[Page H3432]]

Again, I am concerned the bill was placed on suspension calendar with
little information to many Members. Passage of the bill does not
reflect wholehearted support for some of the provisions it contains; I
guess that is a rule of life around here. But I do want to very
strongly convey to our chairman that this does not track the foreign
ops bill for 1996-97. The foreign ops bill only gave enhanced IMET for
1996, and I hope that the gentleman would join with us in monitoring
how that enhanced IMET funding is spent.
Mr. LANTOS. Mr. Speaker, I yield such time as she may consume to the
gentlewoman from Oregon [Ms. Furse].
(Ms. FURSE asked and was given permission to revise and extend her
remarks.)
Ms. FURSE. Mr. Speaker I rise because of concerns I have to H.R.
3121, amending the Foreign Assistance Act and the Arms Export Control
Act.
This bill moves us in the wrong direction. It unnecessarily costs the
taxpayers more money and it moves us toward less accountability of arms
transfers.
At a time when we are working so hard to balance the Federal budget,
it does not make sense to do as this bill does. For the first time, it
would require U.S. taxpayers to pay the costs of shipping the excess
defense articles we're giving away to other countries.
In a world where our own soldiers are at risk from the very weapons
exported by the United States, we should not be promoting increased
exports in the ways that this bill does. This bill eliminates
congressionally mandated language to ensure that foreign recipient
countries use the equipment as intended. That includes, for example,
the requirement that excess defense articles transferred for
counternarcotics purposes be used primarily for counternarcotics
purposes and not for counterinsurgency.
This bill strips Congress of its ability to gauge the human rights
situation and to determine if the assistance is likely to be used in
abuses. We must be more creative than that in determining ways for our
Nation's workers to have jobs. We cannot come to rely on arms exports
to such an extent that we ignore human rights.
This is a controversial bill, Mr. Speaker. I object to the process
that was used in bringing it to the floor on the suspension calendar
and I object to its content. I urge my colleagues to reject H.R. 3121.
Mr. LANTOS. Mr. Speaker, I yield such time as she may consume to the
gentlewoman from Georgia [Ms. McKinney].
(Ms. McKINNEY asked and was given permission to revise and extend her
remarks.)
Ms. McKINNEY. Mr. Speaker, as a mother and a woman of conscience, I
am concerned about U.S. transfers of arms around the world and the
impact that those transfers will have 10-15 years down the road,
particularly on my son and the other young people of America.
Mr. Speaker, I rise today to express concern about portions of H.R.
3121 that would reduce congressional oversight on arms sales to foreign
countries.
Current law governing congressional oversight of arms sales is
already feeble--this bill only makes a bad situation worse. On numerous
occasions, our soldiers have been sent into war situations where they
have had to face hostile forces armed with American supplied weapons.
I am sure everyone recalls Panama, Iraq, Somalia, and Haiti where our
fighting men and women were sniped at and killed by weapons we supplied
to those countries before they turned belligerent.
Mr. Speaker, while there are provisions in this bill which I strongly
support--such as Narcotics control, refugee assistance, and POW/MIA
recovery efforts--I cannot in good conscience allow this bill to breeze
through this body without careful deliberation.

Every year, the weapons we sell overseas are used against innocent
civilians, refugees, political dissidents, and, yes, American soldiers.
As the legislative branch, we have the right and responsibility to
oversee the transfer of weapons to foreign governments.
This does not mean we cannot supply our allies with the tools to
defend themselves, it simply means that we should provide a sobering
second thought when the administration is about approve the transfer of
lethal American weapons into the hands of foreign governments.
This bill, Mr. Speaker, would increase the threshold at which
Congress must be notified for arms sales, from $200 to $300 million.
That means the administration would be able to sell $100 million more
in guns overseas before Congress must be notified.
Moreover, the bill authorizes the resumption of international
military and education training for the Government of Indonesia. Mr.
Speaker, it is well known that Indonesia has an atrocious human rights
record, especially with regards to the people of East Timor.
For those of my colleagues who aren't aware, the people of East Timor
have been subjected to near-genocide, simply because of their
opposition to the multinational mining interests who want to
expropriate their minerals.
Mr. Speaker, measures such as these should not be dealt with so
lightly under the suspension calendar, and Congress should not be so
willing to hand over its limited oversight authority to the
administration.
While I want to support the good measures in this bill Mr. Speaker, I
am afraid that my conscience will not let me vote for a bill that will
reduce congressional oversight with respect to the sale of weapons.
Moreover, I cannot support a bill which will authorizes the use of
American tax dollars to train the repressive military of Indonesia.
As a mother and as a woman of conscience, I urge my colleagues to
oppose this regrettably tainted bill.
Mr. LANTOS. Mr. Speaker, I have no further requests for time, and I
yield back the balance of my time.
Mr. GILMAN. Mr. Speaker, I yield 6 minutes to the gentleman from
Nebraska [Mr. Bereuter], the distinguished chairman of our Subcommittee
on Asia and the Pacific.
Mr. BEREUTER. Mr. Speaker, I thank the chairman for yielding me this
time.
I would say to my colleagues, the gentleman from Massachusetts, the
gentleman from Rhode Island, the gentlewoman from New York, and the
gentlewoman from California, if it is not absolutely clear, we are not
authorizing IMET for Indonesia. We are authorizing E-IMET, or extended
IMET, and not, as one of the gentleman said, enhanced IMET. And, even
``extended IMET'' really does not convey what the program is, for it is
quite different than the original IMET program. The Extended IMET
program is the kind of program exactly designed to be used in a country
like Indonesia where we do have some human rights concerns which are in
part related to East Timor.
Now, let me say first of all that the enhanced IMET program, or E-
IMET, is strongly supported by the administration. If you listen to
CINCPAC sources, as people in the State Department, the Defense
Department generally and other parts of the administration, it is clear
that this administration, the previous administration, are supportive
of extending the ``Enhanced IMET'' program to Indonesia. It moves us
closer to a positive defense relationship with Indonesia, and, more
importantly, it is specifically geared, as the gentleman from Indiana
[Mr. Hamilton] said, to dealing with a country that has human rights
problems that trouble us a great deal. The E-IMET program is to foster
greater respect for the principles of civilian control of the military.
It is to improve military justice and military codes of conduct in
accordance with internationally recognized human rights. It is to
contribute to responsible defense resource management. It is to
contribute to cooperation between the military and local police in the
area of counternarcotics.
This is the full scope of the E-IMET program. It is very different
than the IMET program, about which objections have been expressed here
today.
Now, let me say that I, despite the fact that I believe that
Indonesia is playing a very important role in Southeast Asia, that it
is strategically located and is a country that has played the key,
positive role in trying to resolve the Spratley Islands dispute in the
waters off Southeast Asia, despite that, I would not be able to suggest
to my colleagues that we ought to approve the traditional IMET
authorization. But there is this to be said for what is happening in
Indonesia:
There are substantial signs of greater judicial independence, there
is NGO activism in the last 12 months, there is a human rights
commission that has been established, primarily because of outside
interests, the human rights community, and the United States of
America. Human rights practices remain certainly imperfect, but the E-
IMET program is specifically designed primarily to push Indonesia and
other countries toward better human rights practices.
So I think that, in fact, our colleagues should feel very good about
authorizing ``Enhanced IMET'' program for Indonesia. And by the way, it
is

[[Page H3433]]

identical to the existing law in the foreign operations appropriation
bill as well as the authorization bills passed by both the House and
the Senate.
I understand a couple of my colleagues--the gentlewoman from
Connecticut, the gentleman from Florida--might like to engage in a
colloquy here. Is that correct?
Mr. Speaker, I yield to the gentleman from Florida if he wishes to
engage in this discussion.
Mr. SHAW. Mr. Speaker, I had not intended to be in the debate on this
particular issue until I heard the questions of what I consider to be
tremendous exaggerations as to what is going on in East Timor. I had
the privilege of visiting East Timor for several days just a few months
ago, along with Congressman Johnson and the gentleman from Texas, Mr.
Archer. We saw firsthand the fact that there are not these huge
breaches of human rights, and we did not see these breaches of human
rights as referred to.
As a matter of fact, one of our Members went and spoke to a Catholic
priest, and, by the way, most of Indonesia is Muslim, this is mostly
Catholic. As a matter of fact, there is the second largest statue of
Jesus in the entire world being constructed--in process of being
constructed--in East Timor.
I went to a Catholic priest who actually favored independence, but he
verified the fact that the human rights record was certainly improving
and that he did not see these tremendous violations of human rights.
Mr. BEREUTER. Mr. Speaker, I yield to the gentlewoman from
Connecticut [Mrs. Johnson].
Mrs. JOHNSON of Connecticut. I think it ought to be also in the
record that the government of East Timor is a Timoran, well respected
by the people of that island, and Indonesia has a way of sharing the
benefits of mining and timber throughout the islands of Indonesia. So
development money is coming in, and not only are they beginning to deal
with the terrible economic problems of this island, but they are
beginning also to deal constructively with the human rights issues.
Mr. BEREUTER. Mr. Speaker, I thank the gentlewoman.
Mr. GILMAN. Mr. Speaker, I thank the gentleman from Florida, the
gentlewoman from Connecticut, the gentleman from Nebraska for
straightening out some of the background on East Timor and the IMET
Program.
Mr. Speaker, I yield 3 minutes to the gentleman from Illinois [Mr.
Manzullo], a member of our committee.
(Mr. MANZULLO asked and was given permission to revise and extend his
remarks.)
Mr. MANZULLO. Mr. Speaker, this is an interesting bill, and I rise in
full support of it, H.R. 3132.
The last title, title 2, that appears on page 50, represents an
incredible set of events that took place in our Committee on
International Relations several months ago. I raised the concern
several months ago, along with the gentleman from Kansas [Mr.
Brownback] that a request of an admiral would come before the committee
on a relatively routine, in his mind, and in the past a routine,
procedure of simply asking the House of Representatives to give away
ships.
As I sat there and listened to the admiral talking about giving away
these ships, it dawned on me--why is the United States in the business
of giving away ships when, in fact, we can simply sell these or lease
them, and at that point the particular bill was pulled. The people who
were working on it decided that perhaps we should do something
different, and as a result of that, there was a committee hearing held
March 21, 1996, before the Committee on International Relations and
this time this particular bill was before our committee, and that is to
sell ships or to lease them to Egypt, Mexico, New Zealand, Portugal,
Taiwan, and Thailand, and I asked the person from the Department of
Defense, the fact that they are now requesting a sale or lease of the
ships, is this in direct response to the inquiry that Mr. Brownback and
I had over our consternation that our country was giving away excess
ships. And the answer by Mr. Caines was, ``Very much, sir.''
He said, ``We have understood what the committee and the Congress
have said, and therefore you will see that in that package, which I
believe includes a total of 10 ships, there is only one grant, sir.
There are eight sales and one lease.''
This particular bill brings in revenues to the U.S. Government in
excess of one-half billion dollars, and what this amounts to is that
the U.S. Navy has now changed its policy so that henceforth any excess
ships are not routinely given away, they are now sold or leased to our
trading partners overseas.
This is a good bill. It is a revenue generator. It is going to make a
lot of money for this country, and it is good, sound foreign policy.
So I would encourage my colleagues wholeheartedly to support the
passage of H.R. 3132.
Mr. GILMAN. Mr. Speaker, I thank the gentleman for his supporting
comments.
Mr. Speaker, I believe that this has been a good, sound debate on the
bill. I am pleased that many of our colleagues have had an opportunity
to participate. I thank the gentleman from California [Mr. Lantos] for
his supporting remarks.
This bill does make important changes in defense and security
assistance authorities, and I am calling on my colleagues to support
the measure.
Mr. REED. Mr. Speaker, I recognize the importance of the issues that
the House of Representatives is addressing today as it considers H.R.
3121.
However, I must object to certain provisions of H.R. 3121 and the
manner in which it has been brought before the House. This measure
authorizes enhanced International Military and Education Training
[IMET] for Indonesia, which is committing flagrant human rights abuses
against the people of East Timor.
More than 20 years ago, Indonesian troops invaded the small country
of East Timor, beginning a storm of violent occupation and repression
that continues today. I believe that we must stand with the East
Timorese against these unconscionable acts, and I am concerned that by
providing enhanced IMET to Indonesia, we may send a dangerous message
to the leaders of that nation.
In addition, by bringing H.R. 3121 to the floor under suspension of
the rules, we will not have a full and open debate on IMET and
Indonesia's aggression against the East Timorese. The suspension
calendar should be reserved for non-controversial legislation. In my
opinion, H.R. 3121 does not meet this test.
I regret that this afternoon, the House is not giving these issues
the attention they deserve. In the months to come, I will continue to
work to assist the long-suffering people of East Timor, and I urge my
colleagues to join me in this effort.
Mr. HALL of Ohio. Mr. Speaker, while I support the majority of the
provisions in H.R. 3121, which makes various technical amendments to
the Foreign Assistance Act and the Arms Export Control Act, I strongly
oppose the section which authorizes the resumption of International
Military and Education Training [IMET] funds for Indonesia.
I have been protesting the human rights abuses in East Timor for some
time now. Last December marked the 20th anniversary of Indonesian
invasion of East Timor. Recently, the situation on the ground there has
been getting worse not better. It is sobering to reflect that over the
last 20 years at least 100,000 and perhaps more than 200,000 people
have been killed out of a population of less than 700,000. While the
vast majority of these deaths took place before 1980, harsh repression
continues. The world witnessed this first hand when the 1991 Santa Cruz
massacre in which the Indonesian military killed over 200 unarmed
individuals was recorded by journalists.
Congress banned IMET funding for Indonesia to protest human rights
abuses in East Timor. The situation has not improved and the U.S.
Congress should not change this policy. It is my hope that we can
prevent the funding of IMET for Indonesia in the appropriations
process.

{time} 1445

Mr. GILMAN. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Camp). The question is on the motion
offered by the gentleman from New York [Mr. Gilman] that the House
suspend the rules and pass the bill, H.R. 3121, 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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